## _**WARRANT OFFICERS’ and SENIOR RATES’ MESS**_ ## _**HMS DRAKE**_ **ANNUAL REPORT AND FINANCIAL STATEMENTS** ## **For Period** **1 August 2021 to 31 July 2022** **Registered Charity No. 1129026** ## **Trustees’ Annual Report and Comments** Warrant Officers’ and Senior Rates’ Mess HMS DRAKE Charity Registered No: 1129026 Covering the Accounting Year: 1 August 2021 to 31 July 2022 Address: HMS DRAKE Devonport Plymouth PL2 2BG Governing Document: Constitution (Mess Rules) Object: Promotion of the Military Efficiency and Operational Effectiveness of the Armed Forces by the provision of mess facilities to Warrant Officers, Senior Ratings and Senior Non-Commissioned Officers serving in His Majesty’s Naval Base Devonport. Trustee: Commodore P Coulson ADC Royal Navy (to 13 July 22) Brigadier M J Tanner OBE ADC Royal Marines (from 14 July 2022) Trustee selection method: Appointed as such by the Naval Secretary. Bankers: Lloyds Banking Group Royal Parade Plymouth Independent Examiner: Peter Nicholls MBE MAAT 5 Nursery Road Havant Hants PO9 3BG Activities and achievements: To have resources available for expenditure on improvements to the quality of life, and the engenderment of espirit de corps. The mess put on a full social programme for its members. Profits from the bar and other activities provided subsidies for social functions. Financial Review: The worth of the fund had increased by £8.8K to £199K, mainly as a result of the much improved bar profits. The assets included £53.4K in property and stocks. The bank, deposit, and cash assets of £199.5K more than covered the liabilities of £168.3K. Investment Selection Policy: Investments were and still are split 30% income funds and 70% capital growth funds, although it changed over the years. Financial Reserves Policy: The Trustee has considered the level of reserves required, appropriate to the charity’s needs. These are held in investments currently worth £69.4K. The Trustee aims to ensure that the charity will be able to fulfil its charitable objectives even if there is a temporary shortfall in income and unexpected expenditure. The Trustee will endeavour not to set aside funds unnecessarily. Grant Policy: None are paid to individuals, but grants are occasionally paid to the Associate Members’ Fund. Risk Assessment: The Trustee reviews the major risks to which the charity is exposed, and systems have been established to manage those risks and believes that by maintaining the free reserves stated it will provide sufficient resources in the event of adverse conditions. Public Benefit Statement: This fund provides public benefit by assisting Service personnel to more effectively perform their roles within the Armed Forces of the Crown. It does this by providing and supporting mess facilities and social activities. This assistance enables Service personnel to face the challenges and danger associated with military service by developing and maintaining teamwork, spirit and attitude, and morale. As a result, the fund promotes the efficiency of the Armed Forces of the Crown by enhancing the Royal Navy’s and Royal Marines’ capability to undertake the roles demanded of it including the defence of the United Kingdom and its interests. I confirm that I have paid due regard to the Charity Commission of England and Wales’s guidance on public benefit when deciding what activities the charity should undertake. Declaration: I declare, in my capacity of Charity Trustee, that I have approved the above report. Signature Signed on Original Name Brigadier M J Tanner OBE ADC Royal Marines. Appointment Naval Base Commander and Sole Managing Trustee Date 30 January 2023 ## **Independent Examiner’s Report to the Trustee of HMS Drake Warrant Officers’ and Senior Rates’ Mess.** I report on the accounts of the Charity for the year ended 31 July 2022, which are set out in pages 1 to 7 and accompanying notes. ## **Respective responsibilities of trustees and examiner** The charity’s trustee is responsible for the preparation of the accounts. The charity’s trustee considers that an audit is not required for this year under section 144(2) of the Charities Act 2011 (The Charities Act) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a licenced member of the Association of Accounting Technicians. It is my responsibility to: - examine the accounts under section 145 of the 2011 Act; - to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act, and - to state whether particular matters have come to my attention. ## **Basis of independent examiner’s report** My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustee for any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below. ## **Independent examiner’s qualified statement** In connection with my examination, there were gaps in the accounting records as detailed in PNIE’s report dated 31 July 2022. No other material matters have come to my attention which gives me cause to believe that in any material respect: - The accounting records were not kept in accordance with section 130 of the Charities Act; or - The accounts did not accord with the accounting records; or - The accounts did not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than in any requirement that the accounts give a “true and fair” view which is not a matter considered as part of an independent examination. I have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. ## Signed on Original P A Nicholls MBE MAAT 5 Nursery Road Havant Hants PO9 3BG 30 January 2023 ## **HMS DRAKE WARRANT OFFICERS' AND SENIOR RATES' MESS** ## **Charity Registration No 1129026** ## **BALANCE SHEET** ## **31-Jul-22** |Notes
Fixed Assets
Mess Property
7
Investments
2
Deposit Account
2
Current Assets
Stocks
7A
Mess Bills
Misc Debtors & Prepayments
8, 8A
Bank Accounts
Cash
Current Liabilities
Sundry Creditors
9, 9A
47 Cdo Fund
Veteran Members' Fund
HMRC VAT Bill
Charity Chest
Net Current Assets
Net Assets|28,997.59
£
69,401.87
£
5,854.79
£
24,445.84
£
1,200.00
£
43,757.79
£
185,589.10
£
8,014.19
£
263,006.92
£
145,938.65
£
18,625.39
£
667.16
£
723.64
£
2,323.05
£
168,277.89
£|_35,164.00_
_£_
_68,728.77_
_£_
_5,381.70_
_£_
104,254.25
£
_109,274.47_
_£_
_16,464.28_
_£_
_2,457.00_
_£_
_25,540.65_
_£_
_81,662.09_
_£_
_6,487.33_
_£_
_132,611.35_
_£_
_31,850.00_
_£_
_17,686.84_
_£_
_1,947.12_
_£_
_-_
_£_
_261.83_
_£_
_51,745.79_
_£_
94,729.03
£
_80,865.56_
_£_
**198,983.28**
**£**
**_190,140.03_**
**_£_**
31-Jul-21|_35,164.00_
_£_
_68,728.77_
_£_
_5,381.70_
_£_
104,254.25
£
_109,274.47_
_£_
_16,464.28_
_£_
_2,457.00_
_£_
_25,540.65_
_£_
_81,662.09_
_£_
_6,487.33_
_£_
_132,611.35_
_£_
_31,850.00_
_£_
_17,686.84_
_£_
_1,947.12_
_£_
_-_
_£_
_261.83_
_£_
_51,745.79_
_£_
94,729.03
£
_80,865.56_
_£_
**198,983.28**
**£**
**_190,140.03_**
**_£_**
31-Jul-21| |---|---|---|---| ||||**_190,140.03_**
**_£_**| Approved on 30 January 2023 ## Signed on Original Brigadier M J Tanner OBE ADC Royal Marines Sole Managing Trustee 1 DR-SR22BS-RevisedBALANCE SHEET ## **HMS DRAKE WARRANT OFFICERS' AND SENIOR RATES' MESS** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **For year ended 31 July 2022** |Notes
**Income**
Donations & Grants
Charitable Activities
Other Trading Activities
Investment Income
Total Incoming Resources
3
**Expenditure**
Raising Funds
Charitable Activities
Other Costs
Total Expenditure
4
Net income (expenditure)
Plus Gains on Revalued Investments
Total funds brought forward
Total funds carried forward|8,298.48
£
227,658.31
£
82,652.82
£
368.30
£
318,977.91
£
91,433.72
£
216,150.39
£
3,343.14
£
310,927.25
£
8,050.66
£
792.59
£
190,140.03
£
**198,983.28**
**£**|_Year to Jul 21_
_3,500.00_
_£_
_88,540.87_
_£_
_2,162.12_
_£_
_462.16_
_£_| |---|---|---| |||_94,665.15_
_£_| |||_2,224.01_
_£_
_92,314.42_
_£_
_3,717.21_
_£_| |||_98,255.64_
_£_| |||_(3,590.49)_
_£_
_10,998.11_
_£_
_182,732.41_
_£_| |||_190,140.03_
_£_| 2 **Notes to the Accounts dated 31 July 2022** ## **Note 1 - Accounting policies** a. The financial statements are prepared under the historic cost convention (as modified by the revaluation of fixed asset investments) and in accordance with applicable accounting standards: Charities Statement of Recommended Practice October 2019 and the provisions of the Charities Acts. Significant policies adopted are: ## Incoming resources - a. Donations are included in the Statement of Financial Activities (SOFA) when the Mess becomes entitled to the donation or grant and it is reasonably certain that it will be received. - b. Incoming resources from fund raising are reported gross in the SOFA. - c. Intangible income is not included in the accounts. - d. The Mess receives no unpaid volunteer help. ## Expenditure and liabilities a. Liabilities are recognised as soon as there is a legal or constructive obligation committing the Mess to the expenditure. ## Assets a. Tangible fixed assets are capitalised if they can be used for more than one year and cost at least £50. They are valued at cost or a reasonable value on receipt. Depreciation is straight line over the estimated life. In view of the diverse nature and multi use, non bar depreciation is not allocated to any of the other activity costs. b. Stocks are valued at the lower of cost or market value. |**Note 2 - Investments**
Market Valuation at 1 Aug 21
Dividends
Revaluation to market value
Market Valuation at 31 Jul 22
Cost of Investments
**Note 3 - Income**
_Voluntary Income_
Grants
_Charitable Activities_
Mess Subscriptions
Associate Mess Subs
Mess functions
Bar Sales
Family Rooms
Coffee & Tea
_Other Trading Activities_
Presentation Port
Private Functions
Ties & Pins
Bad Debts Recovered
_Investment Income_
Dividends & Interest
Total Income|CCLA Income
17,204.57
£
(191.03)
£
17,013.54
£
10,500.00
£
50,932.65
£
3,396.88
£
49,296.04
£
123,674.53
£
358.21
£
-
£
927.30
£
80,987.06
£
158.36
£
580.10
£
Year to|CCLA Accum
CCLACOIF
51,524.20
£
5,381.74
£
473.05
£
864.13
£
52,388.33
£
5,854.79
£
24,500.00
£
8,298.48
£
_3,500.00_
_£_
_52,418.33_
_£_
_5,438.43_
_£_
_7,459.87_
_£_
_23,163.57_
_£_
_-_
_£_
_60.67_
_£_
227,658.31
£
_88,540.87_
_£_
_1,135.53_
_£_
_-_
_£_
_210.40_
_£_
_816.19_
_£_
82,652.82
£
_2,162.12_
_£_
368.30
£
_462.16_
_£_
318,977.91
£
_94,665.15_
_£_
Jul 22
_Year to Jul 21_| |---|---|---| 3 ## **Note 4 - Expenditure** |**Note 4 - Expenditure**|||||| |---|---|---|---|---|---| |_Raising Funds_
Cost of Ties & Pins
Presentation Port
Private Functions
Private Functions - Losses
_Charitable Activities_
Trading Costs
Cost of Bar Sales
Function Expenses
Function Expenses from Subsidy
Linen and Laundry
Refurbishment (Grant Funded)
Running Costs
Christmas Draw 22 Subsidy
Mess Socials
Mess Guests
Family Rooms
Internet/Telephone
Newspapers
Coffee & Tea
TV, Video & Audio
Performing Rights
Repairs,Renewals & Improvements
Insurance
Trophy Hire
Presentations /Leavers Gifts
Central Amenities Fund
Flowers and Decs
Misc Expenditure
Governance Costs
Examination
Support Costs
Bank Charges
Print, Post, Stationery
Depreciation (Non bar)
_Other Costs_
Write Off - Valiant
Total Expenditure|459.39
£
2,383.88
£
80,987.06
£
7,603.39
£
78,566.08
£
49,296.04
£
18,474.81
£
6,740.70
£
8,298.48
£
919.45
£
6,494.02
£
362.49
£
492.16
£
1,125.96
£
4,957.29
£
2,905.41
£
11,980.74
£
1,877.66
£
1,811.11
£
1,155.67
£
326.00
£
502.10
£
3,000.00
£
-
£
4,553.48
£
1,020.00
£
3,152.18
£
1,531.34
£
6,607.22
£
3,343.14
£
Year to|Year to|91,433.72
£
216,150.39
£
3,343.14
£
310,927.25
£
Jul 22|_335.25_
_£_
_1,888.76_
_£_
_-_
_£_
_-_
_£_
_2,224.01_
_£_
_21,695.03_
_£_
_7,459.87_
_£_
_20,280.04_
_£_
_-_
_£_
_-_
_£_
_-_
_£_
_-_
_£_
_26.85_
_£_
_357.99_
_£_
_597.20_
_£_
_4,374.14_
_£_
_4,001.06_
_£_
_11,185.57_
_£_
_-_
_£_
_2,049.90_
_£_
_1,365.97_
_£_
_163.55_
_£_
_975.03_
_£_
_3,000.00_
_£_
_25.00_
_£_
_744.40_
_£_
_995.00_
_£_
_2,219.95_
_£_
_1,167.48_
_£_
_9,630.39_
_£_
_92,314.42_
_£_
_3,717.21_
_£_
_3,717.21_
_£_
_98,255.64_
_£_
_Year to Jul 21_|| ||||||_98,255.64_
_£_| 4 DR-SR22BS-RevisedSOFAE ## **Note 5 - Paid Employees** a. There are no employees who are paid by the mess. Additional bar wages are billed by the contractor. ## **Note 6 - Trustees and Other Related Parties** - a. No expenses or emoluments have been paid to the sole Managing Trustee. - b. The Mess makes a contribution to HMS Drake Central Amenities Fund (CAF) to secure benefits for its members.This charity and the CAF Charity have the same sole managing trustee. - c. There are no amounts due to or from the sole Managing Trustee. ## **Note 7 - Tangible Fixed Assets** |Property Valuation as at 1 Aug 21
Additions
Depreciation/Disposals
Property Valuation at 31 Jul 22
**Note 7A - Stocks**
Bar
Private Functions Catering Stock
Tea & Coffee
Tie pins & Ties
Presentation Port
**Note 8 - Miscellaneous Debtors**
Mess Functions Cancelled - Oktober Fest 21
Comedy Night Prepaid - Sep 22
Southwest Logs Dinner - Cancelled
Mess Fees owed
Trophy Hire 21/22 - Refunded Duplicate
Trophy Hire 22/23 Prepaid
Mitie Tea - Biscuits and Lunches
Private Function Income - 47CDO Boxing
HMS Vanguard
Talent Dinner
Valiant Debt (After 25% Annual Write Off)
**Note 8A - Prepayments**
Insurance
SKY TV|Furniture and
Bar
Fittings
Equipment
32,549.75
£
2,614.25
£
1,103.16
£
-
£
(6,607.22)
£
(662.35)
£
27,045.69
£
1,951.90
£
17,711.52
£
4,643.25
£
288.81
£
697.74
£
1,104.52
£
24,445.84
£
750.00
£
2,157.59
£
1,608.50
£
1,200.00
£
163.55
£
108.30
£
1,302.82
£
4,953.20
£
21,241.30
£
2,803.63
£
6,695.25
£
42,984.14
£
369.25
£
404.40
£
773.65
£| |---|---| 5 ## **Note 9 - Computer Creditors** |Alliance Disposables Ltd
BOC
Booker
Coors
ESS
Friary Mill Bakery Ltd
VH Graddon & Sons Ltd
Jones & Champion
LWC
Johnsons Stalbridge Linen
Taxi
**Note 9A - Creditors (all due within one year)**
Mess Fees in Advance
Wedding Deposit
Bar - BOC & Sundries
Coffee cards
Meat Raffle
Christmas Draw Prepaid - 22
Grants - Mess Refurb Prepaid (Start date Jan 23)
Private Function Prepaid - Duffy Wedding Dec 22
Private Function Prepaid - TTD Nov 22
Mess Function Cancelled - Oktober Fest 21
Mess Function Cancelled - SW Logs Dinner
Mess Function Prepaid - Comedy Night Sep 22
Newspapers
Performing Rights
CAF
Crown Accommodation charges
ESS - Napkins
Bank charges
Accounts Examination|237.53
£
0.10
£
43.04
£
7,207.09
£
28,994.24
£
970.00
£
554.67
£
1,944.47
£
1,070.37
£
757.35
£
598.08
£| |---|---| ||42,376.94
£| ||1,026.00
£
1,500.00
£
480.00
£
2,530.00
£
1,056.00
£
930.00
£
83,356.13
£
1,392.41
£
120.00
£
83.34
£
46.50
£
549.98
£
454.72
£
1,877.66
£
3,000.00
£
3,782.01
£
24.00
£
332.96
£
1,020.00
£| ||103,561.71
£| ## **Note 10 - Endowment or Restricted Income Funds** There are only unrestricted funds. ## **Note 11 - Other Information** - a. The fund does not have any material commitments not provided for in the accounts. - b. The fund has not given any guarantees to any third party that could be called on at the year end. c. The fund has not granted any loans. - d. The fund did not make any ex gratia payments during the year. ## **Declarations** - a. The Trustee has not changed the year end date nor the length of the fund's financial year . - b. The fund has one designated fund - Family Cabins. - c. All the fund's operations are continuing operations and there were no discontinued operations. - d. No funds are in deficit. - e. The fund has no marketable intangible assets. - f. There were no interfund loans outstanding at the balance sheet date. - g. None of the funds functional assets have been revalued during the year and the fund does not have a policy of revaluation of these assets. - h. The fund has no material fixed assets which have not been capitalised and included in the Balance Sheet. ## **Bar Trading for year ended 31 Jul 22** |Sales
Cost of sales
Gross Profit
Gross Profit/Sales =%
Gross Profit/Cost of Sales = %
(i.e average mark up)
Less expenses:
Till Repairs and Servicing
Bar Gas, Cleaning and Sundries
COVID Out Of Date
Staff Taxis
Depreciation
Net profit|43.7%
77.5%
900.00
£
2,983.21
£
-
£
4,330.30
£
662.35
£
36.5%|123,674.53
£
_23,163.57_
_£_
69,690.22
£
_15,994.83_
_£_
53,984.31
£
_7,168.74_
_£_
_30.9%_
_44.8%_
_1,350.00_
_£_
_467.03_
_£_
_377.44_
_£_
_1,159.12_
_£_
_662.35_
_£_
8,875.86
£
_4,015.94_
_£_
45,108.45
£
_13.6%_
_3,152.80_
_£_
_Previous Year_|123,674.53
£
_23,163.57_
_£_
69,690.22
£
_15,994.83_
_£_
53,984.31
£
_7,168.74_
_£_
_30.9%_
_44.8%_
_1,350.00_
_£_
_467.03_
_£_
_377.44_
_£_
_1,159.12_
_£_
_662.35_
_£_
8,875.86
£
_4,015.94_
_£_
45,108.45
£
_13.6%_
_3,152.80_
_£_
_Previous Year_| |---|---|---|---| ||||_7,168.74_
_£_
_4,015.94_
_£_| ||||_3,152.80_
_£_| 6 DR-SR22BS-RevisedBAR TRADING ## **Independent Examiner’s Report to the Trustee of HMS Drake Warrant Officers’ and Senior Rates’ Mess.** I report on the accounts of the Charity for the year ended 31 July 2022, which are set out in pages 1 to 7 and accompanying notes. ## **Respective responsibilities of trustees and examiner** The charity’s trustee is responsible for the preparation of the accounts. The charity’s trustee considers that an audit is not required for this year under section 144(2) of the Charities Act 2011 (The Charities Act) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a licenced member of the Association of Accounting Technicians. It is my responsibility to: - examine the accounts under section 145 of the 2011 Act; - to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act, and - to state whether particular matters have come to my attention. ## **Basis of independent examiner’s report** My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustee for any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below. ## **Independent examiner’s qualified statement** In connection with my examination, there were gaps in the accounting records as detailed in PNIE’s report dated 31 July 2022. No other material matters have come to my attention which gives me cause to believe that in any material respect: - The accounting records were not kept in accordance with section 130 of the Charities Act; or - The accounts did not accord with the accounting records; or - The accounts did not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than in any requirement that the accounts give a “true and fair” view which is not a matter considered as part of an independent examination. I have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. ## Signed on Original P A Nicholls MBE MAAT 5 Nursery Road Havant Hants PO9 3BG 30 January 2023