THE CENTRAL AMENITIES FUND
HMS HERON
ANNUAL REPORT AND FINANCIAL STATEMENTS
For Period
1 May 2020 to 30 April 2021
Registered Charity No. 1129715
Trustees’ Annual Report and Comments
| Central Amenities Fund HMS HERON | |
|---|---|
| Charity Registered No: |
1129715 |
| Covering the Accounting Year: 1 May 2020 to 30 April 2021 | |
| Address: | RNAS Yeovilton |
| Ilchester | |
| Somerset BA22 8HT | |
| Governing Document: |
Constitution |
| Objects: | Promotion of the Military Efficiency and Operational |
| Effectiveness of the Armed Forces by the provision of | |
| leisure activities and domestic facilities to Service personnel | |
| and their families serving in the Royal Naval Air Station | |
| Yeovilton. In addition, it provides central fund banking | |
| facilities for a variety of Service and Approved funds. | |
| Trustee: | Commodore N H C Tindal Royal Navy (until 7 Jul 2020) |
| Commodore N R Griffin MBE Royal Navy (from 8 July 2020) | |
| Trustee selection method: | Appointed as such by the Naval Secretary. |
| Bankers | Barclays Bank |
| King George Street | |
| Yeovil | |
| Independent Examiner: | P A NichollsMBE 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 fund continued to meet its objectives in | |
| the past year and the community centre, narrow boat, motor | |
| home and garage facilities were well used by the Service | |
| personnel and their families. | |
| Financial Review | The fund has had a bad year, having lost £81K in value. It |
| was worth £164K of which £138K was represented by | |
| property and stock. It had bank and deposit holdings of | |
| £277K but of this figure £237K was held for other funds and | |
| creditors. This means that the fund has just £40K of its own | |
| money in the bank and clearly cannot continue to sustain | |
| losses at the rate seen last year. However, there are signs that | |
| losses this year will be reduced as: | |
| • The reduction to one CAF Manager will lead to some | |
| salary savings. | |
| • Tall Trees bar will reopen. |
- Narrowboat and holiday home bookings have restarted.
Financial Reserves Policy:
The Trustee has considered the level of reserves that is required, appropriate to the charity’s needs. This is set at £100K, although it is currently less than that figure. It is held within the Charity Deposit Account. It seeks to provide three months CAF running costs and to be able to replace the narrowboat. 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.
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 building up the free reserves it will provide sufficient resources in the event of adverse conditions. Independent examination of the accounts twice yearly will mitigate the risk of any mismanagement by the committee.
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 leisure 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 their capability to undertake the roles demanded of them including the defence of the United Kingdom and its interests.
I confirm that 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 Commodore N R Griffin MBE Royal Navy
Appointment Commanding Officer and sole Managing Trustee
- Date 4 June 2021
Independent Examiner’s Report to the Trustee of the HMS Heron Central Amenities Fund.
I report on the accounts of the Charity for the year ended 30 April 2021 which are set out in pages 1 to 10 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.
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 statement
In connection with my examination, no 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
4 June 2021
HMS HERON CENTRAL AMENITIES FUND
Registered Charity No 1129715
BALANCE SHEET
30-Apr-21
| Fixed Assets Notes Property 7 Current Assets Stocks 8 Debtors & Prepayments 9/9A Charities Deposit Account Bank Accounts Cash & Floats Current Liabilities Trade Creditors 10 Tall Trees Creditors 10A Central Bank for: Service Funds 11 Dispersing Funds 11A Dormant Funds 11B Approved Funds 11C Net Current Assets Long Term Liability Nuffield Trust (Holiday Home) 10B Total Net Assets |
9,093.01 £ 15,592.03 £ 247,289.60 £ 30,025.67 £ 2,431.11 £ 304,431.42 £ 22,868.89 £ 1,079.08 £ 105,371.47 £ 45,519.55 £ 247.32 £ 61,601.02 £ 236,687.33 £ |
129,088.00 £ 140,548.00 £ 11,972.80 £ 16,752.76 £ 271,966.55 £ 79,785.21 £ 3,871.89 £ 384,349.21 £ 14,829.40 £ 160.00 £ 98,420.58 £ 41,893.20 £ 247.32 £ 88,714.54 £ 244,265.04 £ 67,744.09 £ 140,084.17 £ 32,872.00 £ 35,672.00 £ 163,960.09 £ 244,960.17 £ 30-Apr-20 |
129,088.00 £ 140,548.00 £ 11,972.80 £ 16,752.76 £ 271,966.55 £ 79,785.21 £ 3,871.89 £ 384,349.21 £ 14,829.40 £ 160.00 £ 98,420.58 £ 41,893.20 £ 247.32 £ 88,714.54 £ 244,265.04 £ 67,744.09 £ 140,084.17 £ 32,872.00 £ 35,672.00 £ 163,960.09 £ 244,960.17 £ 30-Apr-20 |
|---|---|---|---|
| 244,960.17 £ |
Approved on 4 June 2021
Signed on Original
Commodore N R Griffin Royal Navy MBE Sole Managing Trustee
1
YEOCAFApr21BSZBALANCE SHEET
HMS HERON CENTRAL AMENITIES FUND
STATEMENT OF FINANCIAL ACTIVITIES
| Income Notes Donations & Grants Charitable Activities Other Trading Activities Investment Income Total Income 3 Expenditure Charitable Activities Other Total Expenditure 4 Net income (expenditure) Less Previous Year Excess Income Correction Net movement in funds Total Funds brought forward 1 May 20 Net Movement of Funds Total Funds carried forward 30 Apr 21 |
2020-21 26,019.43 £ 98,349.39 £ 3,770.18 £ 97.72 £ 128,236.72 £ 209,236.80 £ - £ 209,236.80 £ (81,000.08) £ - £ (81,000.08) £ 244,960.17 £ (81,000.08) £ 163,960.09 £ |
2019-20 114,875.96 £ 142,641.59 £ 13,487.84 £ 2,121.57 £ |
|---|---|---|
| 273,126.96 £ |
||
| 305,424.04 £ - £ |
||
| 305,424.04 £ |
||
| (32,297.08) £ (8,255.00) £ |
||
| (40,552.08) £ |
||
| 285,512.25 £ 2,532.29 £ |
||
| 244,960.17 £ |
2
YEOCAFApr21BSZSOFA SUM
HMS HERON CENTRAL AMENITIES FUND
Notes to the Accounts dated 30 April 2021
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 2019 and the provisions of the Charities Act 2011. Significant policies adopted are:
Incoming resources
a. Donations are included in the Statement of Financial Activities (SOFA) when the CAF 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 CAF receives no unpaid volunteer help.
-
e. Investment income is included in the accounts when receivable.
Expenditure and liabilities
a. Liabilities are recognised as soon as there is a legal or constructive obligation committing the CAF to the expenditure.
b. Administration costs are incurred by the CAF Manager and her assistant. These costs are not apportioned as their tasks are wide ranging in support of leisure and amenities and include the maintenance of the Central Bank facility for other funds.
Assets
a. Tangible fixed assets are capitalised if they can be used for more than one year and cost at least £250. They are valued at cost or a reasonable value on receipt. The CAF does not have a policy of revaluation. Depreciation is straight line and over the estimated life of the item.
b. Investments on a recognised stock exchange are valued at market value at the date of the Balance Sheet or at best estimate of market value.
- c. Stocks are valued at the lower of cost or market value.
Note 2 - Investments
There are none
3
Note 3 - Income
| Voluntary Income Donations & Grants Furlough CAF Grant Tall Trees Grants Closed Funds Gainshare/Excess Income Charitable Activities Tall Trees (see Note 15) Garage (See Note 14) Narrowboat Holiday Home Holiday Home - Reduce NT Liability Caravan Parking JR Xmas Lunch Sports Income Family Rooms Selecta Royalties Barber's Rent Misc Income Fund Raising Recreational Passes Sub Fund Contributions Excess Income Admin Investment Income Interest Total Income |
416.70 £ 2,477.43 £ 23,125.30 £ - £ - £ Year to |
Year to | 827.98 £ 936.48 £ 95,500.00 £ 429.31 £ 17,182.19 £ 26,019.43 £ 114,875.96 £ 70,137.87 £ 28,076.41 £ 22,285.36 £ 8,023.06 £ 2,744.00 £ 3,772.69 £ 2,210.88 £ - £ 1,874.48 £ 291.30 £ 2,676.05 £ 549.49 £ 98,349.39 £ 142,641.59 £ 9,903.00 £ 476.00 £ 3,108.84 £ 3,770.18 £ 13,487.84 £ 97.72 £ 2,121.57 £ 128,236.72 £ 273,126.96 £ Previous Year April 2021 |
|---|---|---|---|
| 22,743.69 £ 44,531.21 £ 12,182.15 £ 7,022.64 £ 2,800.00 £ 4,640.00 £ - £ 947.20 £ 2,038.70 £ - £ 1,443.80 £ - £ |
|||
| 3,452.18 £ 318.00 £ - £ |
|||
4
Note 4 - Expenditure
| Charitable Activities Operating Costs Tall Trees (See Note 15) Narrowboat Narrowboat Depreciation Holiday Home Holiday Home - Depreciation Garage (See Note 14) Sports Expenditure Civ Insurance - Gym Insurance Barber DIO Vending Depreciation JR Xmas Lunch Grants TV Licences Gifts Governance Costs Independent Examination Fees Support Costs Office Salaries Pensions Office Administration Bank Charges Fuel Minor Depreciation Total Expenditure |
54,878.28 £ 162,757.43 £ 13,263.02 £ 16,031.97 £ 5,516.00 £ 5,516.00 £ 3,943.16 £ 6,607.94 £ 2,882.83 £ 2,800.00 £ 67,893.83 £ 37,079.40 £ 9,688.36 £ 9,556.38 £ 1,646.40 £ 1,695.79 £ 1,268.89 £ 1,126.08 £ 267.36 £ 1,604.13 £ 964.00 £ 964.00 £ - £ 2,065.48 £ 2,919.58 £ 12,473.52 £ 157.50 £ 309.00 £ 585.00 £ 784.77 £ 2,030.00 £ 2,025.00 £ 34,693.96 £ 37,098.17 £ 2,220.00 £ 1,980.00 £ 2,960.66 £ 2,086.62 £ 870.42 £ 132.83 £ 40.55 £ 207.20 £ 547.00 £ 522.33 £ 209,236.80 £ 305,424.04 £ 209,236.80 £ 305,424.04 £ Year to April 2021 Previous Year |
|---|---|
Total Expenditure
Note 4A - Major Grants (above £1000)
Lynx Memorial - 847
- £ 2,000.00
Note 5 - Paid Employees
- a. Wages/Salaries: £ 100,109 Previous Year (£77610) Employers National Insurance: £ 2,218 Previous Year (£881)
b. There were 10 employees None earned more than £50,000 pa
5
Note 6 -Trustees and Other Related Parties
-
a. No expenses or emoluments have been paid to the Sole Managing Trustee
-
b. There are no amounts due to or from the Sole Managing Trustee
-
c. The sole Managing Trustee is also the sole Managing Trustee of the Wardroom HMS Heron and the WO, SR & SNCO Mess HMS Heron.
-
d. The Sole Managing Trustee is also the trustee of the charitable Service funds that use the CAF as their Central Bank (Note 11).
Note 7 - Fixed Assets - Fixtures, Fittings and Equipment
| Value at 1 May 20 Additions Less Depreciation Value at 30 Apr 21 |
Narrowboat 43,570 £ - £ (5,516) £ |
Garage | Birds Quarry |
Tall Trees |
Vending | Other | Holiday Home Total 36,400 £ 140,548 £ 163 £ 163 £ (2,883) £ (11,623) £ 33,680 £ 129,088 £ |
|---|---|---|---|---|---|---|---|
| 19,183 £ - £ (1,716) £ |
38,000 £ - £ - £ |
540 £ - £ (120) £ |
1,686 £ - £ (964) £ |
1,169 £ - £ (424) £ |
|||
| 38,054 £ |
17,467 £ |
38,000 £ |
420 £ |
722 £ |
745 £ |
Note 8 - Stocks
| Garage Tall Trees Bar Stock |
6,906.00 £ 2,187.01 £ |
|---|---|
| 9,093.01 £ |
Note 9 - Miscellaneous Debtors (Payable in less than one year)
| HMRC Furlough Grants | £ | 2,087.57 |
|---|---|---|
| JR Mess Sky (AWF) | £ | 2,105.68 |
| £ | 4,193.25 | |
| Note 9A- Prepayments | ||
| Insurance - CAF | £ | 819.55 |
| Insurance - Sub Funds | £ | 4,342.83 |
| Insurance - Holiday Home | £ | 160.00 |
| Insurance - Narrowboat | £ | 484.00 |
| Narrowboat Mooring Fees | £ | 2,941.00 |
| Narrowboat Licence | £ | 457.40 |
| Cornish Charm Site Fees | £ | 2,194.00 |
| £ | 11,398.78 | |
| Note 10 - Creditors (payable in less than one year) | ||
| Unidentified Bank Credits | £ | 10,294.69 |
| Prebooked Narrowboat | £ | 4,476.21 |
| Prebooked Cornish Charm | £ | 1,452.41 |
| Cornish Charm Cleaning | £ | 65.00 |
| Garage | £ | 1,389.78 |
| Berry's Coaches | £ | 7.87 |
| PNIE Examination | £ | 900.00 |
| HMRC - VAT | £ | 2,101.05 |
| HMRC - PAYE | £ | 2,181.88 |
| £ | 22,868.89 |
6
| Note 10A -Tall Trees Creditors TT - Bar Stocktake TT - Ice Machine TT - PRS (Estimated) PNIE Examination Note 10B - Long Term Creditor RNRMC (Nuffield Trust) - Interest in Holiday Home Note 11 - Service Funds held by CAF as Central Bank 815 NAS Officers' Fund 815 NAS Welfare Fund 815 NAS SR Fund 825 NAS Welfare Fund 825 NAS Officers Fund 825 NAS Wings Parade 845 NAS Welfare Fund 845 NAS Officers Fund 846 NAS Officers Fund 846 NAS SR Fund 846 NAS Welfare Fund 846 NAS Wings Parade 847 NAS Officers Fund 847 NAS Welfare Fund Junglie Cocktail Party AED Officers Fund Black Cats Display Team CHF Families Day CHF Officers Fund CHF Sports Fund CHF Welfare Fund Exercise Rotary Cluster 846 Dinner HMS Heron Field Gun Heron Sailing Club Yeovilton Gliding Club Yeovilton Golf Society Sporting Gun Club Station Families Day Volunteer Band Sports Personality Awards FAA Grass Roots Heron Grass Roots NAC Sub Aqua Club RN Motor Cycle Club RN Model Aircraft Association Short Term Family Accommodation |
100.00 £ 709.08 £ 100.00 £ 170.00 £ |
|---|---|
| 1,079.08 £ |
|
| 32,872.00 £ 4,116.22 £ 4,995.11 £ 443.50 £ 2,653.90 £ 2,807.97 £ 859.17 £ 1,979.96 £ 5,271.29 £ 2,688.13 £ 22.34 £ 5,435.62 £ 159.10 £ 2,748.62 £ 2,206.00 £ 3,846.77 £ 3,940.28 £ 971.09 £ 1,567.88 £ 2,485.95 £ 805.00 £ 2,446.22 £ 1,417.95 £ 5.81 £ 3,620.99 £ 849.76 £ 3,525.46 £ 5,984.30 £ 1,765.86 £ 16,353.16 £ 1,252.25 £ 2,578.25 £ 3,948.83 £ 2,021.46 £ 706.71 £ 829.67 £ 4,289.29 £ 3,771.60 £ |
|
| 105,371.47 £ |
7
| Note 11A - Dispersing Funds held by CAF as Central Bank | Note 11A - Dispersing Funds held by CAF as Central Bank | Note 11A - Dispersing Funds held by CAF as Central Bank |
|---|---|---|
| Air Engineering & SE NVQ Rewards | £ | 35,210.06 |
| RNSAC - GNVQ AWARDS | £ | 1,235.80 |
| Charity Grants | £ | 5,205.75 |
| JR Accommodation Keys | £ | 207.34 |
| Key Fobs | £ | 3,660.60 |
| £ | 45,519.55 | |
| Note 11B - Dormant Funds held by CAF as Central | Bank | |
| LWMF Families Day | £ | 247.32 |
| £ | 247.32 | |
| Note 11C - Approved Funds Using the CAF as Central Bank | ||
| RNR Air Branch - Officers | £ | 8,901.46 |
| RNR Air Branch - Warrant Officers | £ | 11,250.10 |
| Coarse Angling Club | £ | 1,416.70 |
| Dog Passes | £ | 1,960.69 |
| Donald Gosling JR Grant | £ | 5,000.00 |
| Flight Safety | £ | 434.05 |
| JR Committee | £ | 1,286.88 |
| Lynx Memorial | £ | 5,500.00 |
| RN Commando Dinner | £ | 480.00 |
| Korean Hospitality | £ | 1,009.60 |
| Guernsey Golf | £ | 129.20 |
| Childrens Swimming Club | £ | 5,177.78 |
| Puxton & CrealyTickets | £ | 365.00 |
| Yeovilteenies PTA | £ | 736.31 |
| REME at DE&S | £ | 726.93 |
| RM Aircrewmen Dinner Fund | £ | 334.36 |
| RN Netball | £ | 250.00 |
| RNRM Welfare Contingency Fund | £ | 10,433.40 |
| RNRM Wyndam | £ | 969.74 |
| Sanctuary | £ | 212.26 |
| Sanctuary Building Improvements | £ | 1,007.99 |
| UPO | £ | 93.35 |
| Velo Alps | £ | 366.08 |
| Chaplaincy Outreach | £ | 1,114.05 |
| TT Little Acorns | £ | 1,096.27 |
| TT Reserve (Closed Groups) | £ | 210.97 |
| TT Youth Club | £ | 763.59 |
| TT Youth Forum | £ | 223.00 |
| TT Great Oaks | £ | 151.26 |
| £ | 61,601.02 |
Note 12- Endowment or Restricted Income Funds
None held
8
Note 13 - Other Information
-
a. The CAF does not have any material commitments not provided for in the accounts
-
b. The CAF has not given any guarantees to any third party that could be called on at the year end.
-
c. The CAF has not granted any loans.
-
d. The CAF 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 CAF's financial year b. The CAF has no designated funds.
-
c. All the CAF's operations are continuing operations and no operations were discontinued during the year.
-
d. The CAF has no intangible assets (other than office and community centre space provided by the Ministry of Defence)
-
e. There were no interfund loans outstanding at the balance sheet date.
-
f. None of the CAF's functional assets have been revalued during the year and the CAF does not have a policy of revaluation of these assets.
-
g. The CAF has no material fixed assets which have not been capitalised and included in the Balance Sheet.
Note 14 - Yeovilton Motor Centre Trading Account for Year to 30 Apr 21
| Total Sales Cost of Sales Gross Profit Less: Wages Additonal MOT Labour Furlough Grant Insurance Garage depreciation Net loss Gross Profit/Sales Net loss/Sales |
44,316.30 £ 287.00 £ (13,252.84) £ 2,317.93 £ 1,716.00 £ 27% -52% |
44,531.21 £ 28,076.41 £ (32,509.44) £ (13,824.70) £ 12,021.77 £ 14,251.71 £ 13,000.00 £ 10,620.00 £ (3,628.54) £ 1,512.24 £ 1,751.00 £ (35,384.39) £ (23,254.70) £ (23,362.62) £ (9,002.99) £ 51% -32% Previous Year |
|---|---|---|
9
Note 15 - Tall Trees - 12 months to 30 Apr 21 (includes bar trading - Note 15A)
| Income Grants Bar Sales Gaming Machines Pool Table Juke Box Miscellaneous Expenditure Bar Expenses Play Park Play Park Inspection Events Repairs & Renewals Covid items Insurance Cleaning TV Performing Rights/PPL/MPLC SDC Licences Office and Miscellaneous Less Examination Less Depreciation Net Gain or (Loss) |
23,125.30 £ 21,136.67 £ 24.00 £ - £ 111.83 £ 1,471.19 £ 25,505.63 £ 23,154.48 £ - £ 1,251.74 £ 436.44 £ 244.82 £ 2,111.87 £ - £ - £ 163.00 £ 360.00 £ 1,650.30 £ |
Previous Year 95,500.00 £ 66,497.26 £ 673.29 £ 125.00 £ 452.84 £ 2,389.48 £ 45,868.99 £ 165,637.87 £ 58,617.49 £ 95,500.00 £ 468.95 £ 1,511.39 £ 1,329.97 £ - £ 1,804.59 £ 180.00 £ 1,067.07 £ 285.76 £ 90.00 £ 1,902.21 £ 54,878.28 £ 162,757.43 £ 330.00 £ 330.00 £ 120.00 £ 63.33 £ (9,459.29) £ 2,487.11 £ |
|---|---|---|
Note 15A - Tall Trees Bar Trading Account - 12 months to 30 Apr 21
| Total Sales Cost of Sales Gross profit Less: Bar Trading Costs Wages & Employers NI Furlough Grants Stock Muster Pipecleaning Wastage/Out of Date Free Drinks Bar Sundries Net Bar Trading Profit or (Loss) Gross Profit/Sales Gross Profit/Cost of Sales (or average mark up) Net Profit or Loss /Sales |
21,136.67 £ 66,497.26 £ (11,630.68) £ (31,438.10) £ 9,505.99 £ 35,059.16 £ 23,317.21 £ } 52.6% 26,341.62 £ 37.3% (12,192.67) £ } (1,508.92) £ 200.00 £ 395.00 £ 362.45 £ 1.7% 717.77 £ 1.1% 1,880.33 £ 8.9% 529.73 £ 0.8% 60.44 £ 99.30 £ 247.19 £ 604.89 £ (13,874.95) £ (27,179.39) £ (4,368.96) £ 7,879.77 £ 45% 53% 82% 112% -21% 12% Previous Year |
|---|---|
10
PN INDEPENDENT EXAMINATIONS
5 Nursery Road Havant Hants PO9 3BG 07801 064450
The Commodore Royal Naval Air Station Yeovilton
19 May 21
THE CENTRAL AMENITIES FUND – EXAMINATION AND ACCOUNTS FOR THE YEAR ENDING 30 APR 21
-
The annual examination of the Central Amenities Fund (CAF) for the year that ended on 30 Apr 21 has been completed satisfactorily. There is a separate report on the other Service funds which use the CAF as a bank. Two copies of the accounts are enclosed, one for the pack and the other to be returned to the CAF Manager after approval.
-
A draft Trustee’s Annual Report (TAR) is also enclosed. Once approved by the Commodore, and any changes inserted, a PDF version of the annual accounts and the TAR must be uploaded to the Charity Commission website. The on-line Annual Return should also be completed at the same time.
Accounts and Musters
- The accounts were well presented with a comprehensive set of supporting documents. Cash had been counted and stocks mustered.
Property
-
The bulk of the value of the fund is represented by its property (Note 7 in the accounts shows the book values). The main items were:
-
Birds Quarry - £38K. It is understood that this cannot be sold to raise funds.
-
Holiday Home - £38K. If sold 98% of the sale price would have to be returned to the RNRMC.
-
Narrowboat - £38K.
Excess Income (EI)
- There was no EI income in the year. The background to this was noted in PNIE’s previous report[1] . As the Covid-19 lockdown comes to an end and ESS business returns to normal, it is strongly recommended that management pressurises DIO, perhaps via FLO, for this source of income from ESS to be reinstated. EI would have been worth £43K in 20/21 (Year 2 of the scheme) and £47.8K in the coming year (Year 3).
Yeovilton Motor Centre (see Note 14 to the Accounts)
-
PNIE report dated 13 Nov 20
-
Sales had increased by 60% to £44.5K, which led to a gross profit of £12K. However, overheads greatly exceeded this figure leading to a net loss of £23.4K compared to a £9K loss in the previous year. Wage costs, even after furlough grant offsets, totalled £31K.
Tall Trees Community Centre (see Note 15 in the accounts)
- The bar lost £4.4K compared to a £7.8K profit in 19/20. When added to other running costs, the Centre made a £9.4K loss compared to an overall profit in 19/20 of £2.5K. One factor was out of date stock worth £1.9K that had to be written off.
Other Income
-
Most sources of profit were much reduced during this Covid-19 affected year and some had become loss makers.
-
The narrow boat had made a loss of £1K compared to a profit of £6.2K in 19/20. These figures ignore the annual depreciation costs of £5.5K.
-
The holiday home had increased profits to £3.1K (£1.4K in 19/20) but this would be much reduced if depreciation of £2.9K was taken into account
-
Gym user pass income had fallen by nearly two thirds to £3.4K. (The insurance premium for civilian use of the gym was £1.6K.)
-
Income from caravan parking had risen by a quarter to £4.6K.
-
Family Room hires had increased a little to £2K.
-
Despite holding £247K on deposit, interest had fallen from £2.1K to an insignificant £98.
-
The income from the barber’s rent was up slightly to £1.2K.
Expenditure
-
The costs of non-trading activities had reduced or remained steady:
-
Sports spending £9.6K matched the previous year.
-
The amount paid out in grants had fallen from £12.5K to just £2.9K. The major grant was £2K paid to the Lynx memorial project.
-
Salary costs fell from £37.1K to £34.7K.
Financial Situation
-
The fund has had a bad year, having lost £81K in value. It was worth £164K of which £138K was represented by property and stock. It might be more useful to look at its bank and deposit holdings of £277K. This might look impressive at first sight but of this figure £237K was held for other funds and creditors. This means that the fund has just £40K of its own money in the bank and clearly cannot continue to sustain losses at the rate seen last year or it will not last until Oct 21.
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On the other hand, there are signs that losses this year will be reduced as:
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The reduction to one CAF Manager will lead to some salary savings.
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Tall Trees bar will reopen.
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Narrow boat and holiday home bookings are coming in.
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It is recommended that a financial plan be drawn up for the coming year starting with the figures for 2019 as that year also lost 1.5 months business to Covid-19.
Summary
- The finances of the CAF are in poor shape and insolvency is a danger. The fund will require month by month monitoring by management.
P A Nicholls PN Independent Examinations
Information:
CAF Manager