# _**THE WARRANT OFFICERS’, SENIOR RATINGS’ AND SERGEANTS’ MESS**_
## _**HMS HERON**_
**ANNUAL REPORT AND FINANCIAL STATEMENTS**
## **For Period**
**1 May 2020 to 30 April 2021**
**Registered Charity No. 1133196**
## **Trustees’ Annual Report and Comments**
Warrant Officers’, Senior Ratings’ and Sergeants’ Mess HMS HERON
|Charity Registered No:
|1133196|
|---|---|
|Covering the Accounting Year: 1 May 2020 to 30 April 2021||
|Address:|RNAS Yeovilton|
||Yeovil|
||Somerset BA22 8HT|
|Governing Document:
|Constitution (and 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 the|
||Royal Naval Air Station, Yeovilton.|
|Trustee:|Commodore N H C Tindal Royal Navy (until 7 July 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:|Peter 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.|
||In a normal year the mess would put on a full social|
||programme for its members during the year and generous|
||subsidies would be provided to functions. This Covid year had|
||none of these activities.|
|Financial Review:|The fund was worth £275.6K, of which £149K was|
||represented by property and stock. Bank assets of £105K|
||easily covered liabilities of £10.3K. The fund increased its|
||assets by £42.1K. There were two main reasons;|
||•
Military subscription income exceeded the running|
||costs of the mess by £36.2K.|
||•
Vending profits of £2.6K.|
|Investment Policy
|The charity has no investments.|
Financial Reserves Policy: The Trustee has considered the level of reserves required, appropriate to the charity’s needs. This is set at £30K but increased this year because of the exceptional circumstances of the pandemic. 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 maintaining the free reserves stated 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 mess 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 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.
## 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 Warrant Officers’ and Senior Ratings’ and Sergeants’ Mess HMS Heron.**
I report on the accounts of the Charity for the year ended 30 Apr 2021, which are set out in pages 1 to 5 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 WARRANT OFFICERS', SENIOR RATINGS' AND SERGEANTS' MESS**
## **Registered Charity 1133196**
## **BALANCE SHEET**
**30-Apr-21**
## ASSETS
|_Note_
Fixed Assets
Mess Property
_7_
Current Assets
Bar & Vending Stocks:
_7A_
Messbills Outstanding
Prepayments & Misc debts
_8_
Bank Accounts
Bank Account (Xmas Draw)
Credit Card
Cash & Floats
Total Current Assets
LIABILITIES
Creditors
_9_
Additional VAT
VAT due (or refundable)
Current Liabilities
Net Current Assets
Net Assets|8,479.27
£
4,624.75
£
22,327.70
£
105,270.63
£
1,301.20
£
58.08
£
3,428.38
£
145,490.01
£
10,330.52
£
-
£
(19.38)
£
10,311.14
£|140,461.00
£
_139,415.00_
_£_
_10,672.25_
_£_
_13,125.00_
_£_
_16,258.82_
_£_
_67,008.40_
_£_
_731.80_
_£_
_58.08_
_£_
_4,037.48_
_£_
_111,891.83_
_£_
_12,409.00_
_£_
_3,146.00_
_£_
_1,596.79_
_£_
_17,151.79_
_£_
135,178.87
£
_94,740.04_
_£_
**275,639.87**
**£**
**_234,155.04_**
**_£_**
_30-Apr-20_|140,461.00
£
_139,415.00_
_£_
_10,672.25_
_£_
_13,125.00_
_£_
_16,258.82_
_£_
_67,008.40_
_£_
_731.80_
_£_
_58.08_
_£_
_4,037.48_
_£_
_111,891.83_
_£_
_12,409.00_
_£_
_3,146.00_
_£_
_1,596.79_
_£_
_17,151.79_
_£_
135,178.87
£
_94,740.04_
_£_
**275,639.87**
**£**
**_234,155.04_**
**_£_**
_30-Apr-20_|
|---|---|---|---|
||||**_234,155.04_**
**_£_**|
Approved on 4 June 2021
## Signed on Original
Commodore N R Griffin MBE Royal Navy Sole Managing Trustee
1
YEO-SRApr21BSZBALANCE SHEET
## **HMS HERON WARRANT OFFICERS', SENIOR RATINGS' AND SERGEANTS' MESS**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **For twelve months to 30 April 2021**
|_Note_
**Income**
Voluntary Income
Charitable actvities
Other Trading Activities
Investment Income
Total Income
_3_
**Expenditure**
Raising Funds
Charitable Activities
Total Expenditure
_4_
Net incoming/(outgoing) resources
Revaluation of Non Depreciating Property
Previous Year Function write off
Total Funds Brought Forward
Total Funds Carried Forward|1,411.43
£
162,444.00
£
240.05
£
0.03
£
164,095.51
£
240.05
£
121,747.98
£
121,988.03
£
42,107.48
£
-
£
(622.65)
£
234,155.04
£
**275,639.87**
**£**|_12 months to Apr 20_|_12 months to Apr 20_|
|---|---|---|---|
||||
_155.76_
_£_
_289,116.79_
_£_
_26,547.18_
_£_
_0.16_
_£_
_315,819.89_
_£_
_26,547.18_
_£_
_279,655.38_
_£_
_306,202.56_
_£_
_9,617.33_
_£_
_651.00_
_£_
_-_
_£_
_223,886.71_
_£_
_234,155.04_
_£_|
2
YEO-SRApr21BSZSOFAsum
## **HMS HERON WARRANT OFFICERS' ,SENIOR RATINGS' AND SERGEANTS MESS**
## **Notes to the Accounts dated 30 April 21**
## **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 (FRS 102) effective 1 January 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 fund 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 fund receives no unpaid volunteer help.
- e. Interest 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 fund to the expenditure.
## Assets
a. Depreciating fixed assets are capitalised if they can be used for more than one year and cost at least £100. They are valued at cost or a reasonable value on receipt. Depreciation is straight line over the estmated life of the item. Depreciation is not allocated to activity costs as the use is varied. b. Stocks are valued at the lower of cost or market value.
## **Note 2 - Investments**
There are none
## **Note 3 - Income**
|_Voluntary Income_
Donations and Grants
_Charitable Activities_
Mess Subs
Associate Subscriptions
Bar income
Vending Sales
Pizza Sales
Function Income
Twickenham Army v Navy 19
Christmas Draw
Meat Raffle
Misc income
_Other Trading Activities_
Private & Departmental Functions
_Investment Income_
Bank Interest
**Total Income**|1,411.43
£
_155.76_
_£_
113,798.04
£
_126,428.55_
_£_
4,027.92
£
_3,700.73_
_£_
7,039.09
£
_85,728.36_
_£_
36,857.25
£
_32,220.35_
_£_
-
£
_197.50_
_£_
42.00
£
_33,381.10_
_£_
-
£
_4,706.00_
_£_
-
£
_828.20_
_£_
-
£
_1,816.00_
_£_
679.70
£
_110.00_
_£_
162,444.00
£
_289,116.79_
_£_
240.05
£
_26,547.18_
_£_
240.05
£
_26,547.18_
_£_
0.03
£
_0.16_
_£_
164,095.51
£
_315,819.89_
_£_
_12 months to 30 Apr 20_
12 months to 30 Apr 21|
|---|---|
3
|**Note 4 - Expenditure**||12 months to 30|Apr 21||_12 months to 30_|_Apr 20_|
|---|---|---|---|---|---|---|
|_Fund Raising_|||||||
|Private & Department Functions|£|240.05
||_£_|_26,207.26_
||
|Private Function Sundries|£|-||_£_|_339.92_
||
|||£|240.05
||_£_|_26,547.18_
|
|_Charitable Activities_|||||||
|Operating Costs|||||||
|Bar Expenses|£|10,507.49
||_£_|_93,465.18_
||
|Pizzas|£|-
||_£_|_134.56_
||
|Vending Purchases|£|34,226.40
||_£_|_26,333.41_
||
|Function expenses from tickets|£|-
||_£_|_33,381.10_
||
|Functions expenses from subsidy|£|-
||_£_|_33,143.52_
||
|Additional VAT on Subsidies|£|-
||_£_|_3,146.00_
||
|Running Costs|||||||
|Free Functions|£|-
||_£_|_1,300.00_
||
|Twickenham|£|-
||_£_|_6,427.89_
||
|Christmas Draw|£|-
||_£_|_1,072.60_
||
|Monthly Meat Raffle|£|-
||_£_|_1,765.58_
||
|Insurances|£|1,224.46
||_£_|_1,763.46_
||
|Repairs & Renewals|£|8,454.01
||_£_|_4,449.41_
||
|Twickenham & Pres Room Refurbs|£|6,990.99
||_£_|_-_
||
|Newspapers & Periodicals|£|2,508.98
||_£_|_2,134.72_
||
|TV and Video|£|1,040.46
||_£_|_1,620.93_
||
|Presentation Stock, Gifts & Flowers|£|10,107.31
||_£_|_7,613.95_
||
|Trophy Hire|£|42.03
||_£_|_41.73_
||
|Coffee/Water|£|11,323.84
||_£_|_9,743.90_
||
|Dining Hall Extra Messing|£|7,702.66
||_£_|_18,866.47_
||
|Performing Rights|£|1,181.29
||_£_|_1,501.27_
||
|Mess Guests|£|520.70
||_£_|_1,050.93_
||
|Grants|£|40.00
||_£_|_50.00_
||
|Miscellaneous Expenses|£|674.13
||_£_|_156.48_
||
|Governance Costs|||||||
|Examination of Accounts|£|1,670.00
||_£_|_1,660.00_
||
|Support Costs|||||||
|Office Costs|£|3,130.72
||_£_|_3,051.37_
||
|Committee Wages|£|5,442.25
||_£_|_2,259.64_
||
|Property Valuation|£|-
||_£_|_540.00_
||
|Bank Charges|£|-
||_£_|_8.25_
||
|Depreciation|£|14,960.26||_£_|_22,973.03_
||
|||£|121,747.98
||_£_|_279,655.38_
|
|Total Expenditure||£|121,988.03||_£_|_306,202.56_
|
## **Note 5 - Paid Employees**
a. Wages totalling £6894 (previous year £14530) were paid to bar staff and a committee member. None earned enough to require Employer's National Insurance contributions to be paid.
## **Note 6 -Trustees and Other Related Parties**
- a. No expenses or emoluments have been paid to the sole Managing Trustee
- b. There were no amounts due to or from the sole Managing Trustee.
4
YEO-SRApr21BSZSOFAE
## **Note 7 - Tangible Fixed Assets - Property Account -**
|As at 1 May 2020
Additions
Adjustments
Depreciation & Disposals
As at 30 Apr 2021
**Note 7A - Stocks**
Bar Stock
Vending Stock
**Note 8 - Miscellaneous Debtors & Prepayments**
Mayfly Bar refurb Deposit
Vending
Mestival 22 Prepaid
Comedy Night prepaid
Prepaid Performing Rights/PPL
Prepaid Insurance
**Note 9 - Creditors**
Crown Accommodation
Top Tables
Newspapers
Twickenham Tickets to be Refunded
Bar Gas
Christmas Draw 21 Prepaid
PN Independent Examinations|Depreciating
Non-Depreciating
Property
Property
47,005.00
£
92,410.00
£
6,816.26
£
2,590.00
£
6,600.00
£
-
£
(14,960.26)
£
-
£
45,461.00
£
95,000.00
£
6,084.70
£
2,394.57
£
8,479.27
£
12,924.87
£
2,367.00
£
4,945.83
£
500.00
£
528.00
£
1,062.00
£
22,327.70
£
291.97
£
7,268.15
£
209.20
£
300.00
£
90.00
£
1,301.20
£
870.00
£
10,330.52
£|
|---|---|
## **Note 10 - Endowment or Restricted Income Funds**
There were none.
## **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.
## **Note 12 - Declarations**
a. The Trustee has not changed the year end date
b. All the fund's operations are continuing operations and there were no discontinued operations.
c. The fund has no marketable intangible assets
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 although there are periodic professional. valuations of non depreciating assets.
h. The fund has no material fixed assets which have not been capitalised and included in the Balance Sheet.
5
## **Bar Trading for twelve months to 30 Apr 21**
|Sales
Cost of sales
Gross Profit or (loss)
Gross Profit or Loss /Sales =
Gross Profit or loss /Cost of Sales =
(i.e. average mark up)
Less expenses:
Bar Wages
1,452.05
£
Covid Write Offs
671.00
£
Pipe Cleaning & Spillage
115.60
£
Net loss|Sales
Cost of sales
Gross Profit or (loss)
Gross Profit or Loss /Sales =
Gross Profit or loss /Cost of Sales =
(i.e. average mark up)
Less expenses:
Bar Wages
1,452.05
£
Covid Write Offs
671.00
£
Pipe Cleaning & Spillage
115.60
£
Net loss|7,039.09
£
_85,728.36_
_£_
8,268.84
£
_72,917.81_
_£_
(1,229.75)
£
_12,810.55_
_£_
-17%
_15%_
-15%
_18%_
21%
_12,270.06_
_£_
_14%_
_-_
_£_
2%
_8,277.31_
_£_
_10%_
2,238.65
£
_20,547.37_
_£_
(3,468.40)
£
_-49.3%_
_(7,736.82)_
_£_
_-9.0%_
_12 months to 30 Apr 20_|
|---|---|---|
||||
6
## PN INDEPENDENT EXAMINATIONS
5 Nursery Road Havant Hants PO9 3BG
07801 064450
The Commodore Royal Naval Air Station Yeovilton
20 May 21
## **THE WARRANT OFFICERS’, SENIOR RATINGS’ AND SERGEANTS’ MESS FUND – EXAMINATION AND ACCOUNTS FOR THE YEAR ENDING 30 APR 21**
1. The examination of the mess fund for the year ending 30 Apr 21 has been completed satisfactorily. Two copies of the accounts are enclosed, one for the pack and the other to be held by the Treasurer after approval,
2. A draft Trustee’s Annual Report (TAR) is also enclosed. Once approved by the Cdre, and any changes inserted, a PDF version of the annual accounts and the TAR must be uploaded to the Charity Commission website. (PNIE will supply PDF versions.) The on-line Annual Return should also be completed at the same time.
## Accounts and Musters
3. The accounts were in good order. Cash had been counted and there had been a surprise count of cash. The Bar Manager and Mess Accountant had mustered bar stock. Vending stock had reduced to near zero but a delivery had arrived just before year end and the value of the delivery has been shown as the stock figure.
## Property
4. Property had a book value of £140K divided between nondepreciating items and depreciating items. The former had been professionally valued in Nov 19. Items included the model of HMS Victory, which was valued at £10K. Disappointingly property had not been mustered. Separate registers and their musters should include:
- Non-depreciating items owned by the mess currently valued at £95K.
- Depreciating items owned by the mess had a book value of £45.6K. (A book value is less than an insurance replacement valuation,)
- Items on loan from the RN Trophy Centre.
- Other items on loan.
5. Mustering of property is normally the responsibility of the Mess Manager. However, this post, formerly filled by the RN, has been removed and the responsibility for property has passed onto the contractor. However, the ESS mess manager does not have the capacity to take on this work in addition to her numerous other tasks. Therefore, it is recommended that the committee appoints a property member to take on the task of musters, (but not the responsibility for property as this remains with the contractor).
6. Whilst depreciating property was listed in a spreadsheet register, the non-depreciating items were not on a list. It is recommended that a register be drawn up using the existing spreadsheet as a template. Items can be inserted from the listings in the Charterhouse valuation (but not the chesterfields) then add on the items that have been removed from the depreciating property register. The latter were mainly the items of interest that are held in the very impressive President’s Room.
7. Some items purchased as part of the refurbishments of the Twickenham and President’s rooms become property and therefore do not appear in the expenditure lines.
## Mess Subscriptions
8. The mess stayed open throughout lockdown periods and continued to provide the normal facilities. Therefore, monthly subscriptions were not reduced. However, short stay visits fell and subscription income fell by £12.6K to £113.8K. Nevertheless, this exceeded the running costs of the mess by £36K. In this mess it is often the case that some of the subscription income is used for function subsidies but, of course, none were required this year.
9. A sweep of personnel serving in the establishment found a significant number who had not registered as mess members and had found over 100 names who were believed to owe a total of £2.2K. They are being actively “encouraged” to pay by the Mess President.
## Running Costs
10. The running costs of the mess showed the following fluctuations compared to the previous year:
- Dining Hall extra messing costs had reduced by more than half to £7.7K.
- Coffee costs increased by £1.6K to £11.3K.
- Newspaper costs increased by 17% to £2.5K.
- TV costs fell from £1.6K to £1K.
- The purchase of presentation stock increased by a third to £10.1K.
## Bar and Vending
11. Bar sales fell from nearly £86K to £7K and as cost of stock exceeded this income a gross loss of £1.2K resulted. After bar staff
wages and £671 in Covid write offs were included, the net loss was nearly £3.5K. The Bar Manager’s wages were treated as a committee cost rather than a bar cost. This mess is one of only two left that pays its own bar staff rather than have the contract provide the staff.
12. The vending machines made a profit of £2.6K (an average 7.7% mark up on goods purchased).
## Subsidies and VAT
13. As there were no functions this year there was no need to top up subsidies from subscription income and therefore there will be no additional VAT bill. Trading profits (bar, vending, associate member fees) were just £3.3K. This amount will be carried over into next year to offset that year’s extra VAT calculation.
14. It is understood that the Christmas Ball will be heavily subsidised by utilising the excess subscription income. The subsidy is likely to incur an addition VAT charge. As a rough guide this additional cost is likely to be around 10% of the subsidy figure.
## Summary
15. The fund was worth £275.6K, of which £149K was represented by property and stock. Bank assets of £105K easily covered liabilities of £10.3K.
16. The fund increased its assets by £42.1K. There were two main reasons;
- Military subscription income exceeded the running costs of the mess by £36.8K.
- Vending profits of £2.6K.
PA Nicholls PN Independent Examinations
Information:
Mess President Mess Treasurer