Company registration number.. 07100967 Charity iegistration nurnber: 1135918 China Fleet Trust (A company limited by guaratee) Annual Report and Financial Statements for the Year Ended 31 May 2024 Thompson Jenner LLP 28 Alexandra TeaGe Exmouth Devon EX8 IBD
China Fleet Trust Contents Reference and Administrative Details Trnstee's Report 2to12 Independent Auditors, Report 13to16 Consolidated Statement of Financial Activities 17to 18 Consolidated Balance Sheet 19 Balance Sheet 20 Consolidated Statement of Cash Flows 21 Statement of Casli Flows 22 Notes to the Financial Statements 23to44
China Fleet Trust Reference and Administrative Details Trustees Rear Admiral John sart Weale CB OBE (Ret'd) Robert Alan Seabrook Baldry AltaIr Kcith Camp Ian Robcrt Douglas Maj Stephen Cox RM Cllr Hilary Anne FTank Cdr Claire Maric Frances L£es MBE RN Lt Cth. Rebecca French RN Wol Paut Andrew Todd-RCSid 27 Nov 2023 Sarah Adkins- Resigned 27 Nov 2023 WO l Andrew Collacott RM-Joincd 27 Nov 2023 Capt Roma Jane Roe ADC RN- Joined 27 Nov 2023 Nicola Sarah Jonas-joined 27 Nov 2023 Company Registered Number 07100967 Charity Registered Number 1135918 Chi¢f Executive Offieer Gordon Charles Hannah Independent Auditors Thompson Jenner LLP 28 Alexandra Terrace Exmouth Devon EX8 IBD Bankers HSBC Forder House 20 William Pranee Road Plymouth Devon PL6 5WR Solicitors Wombje Bond Dickinson Ballard House West Hoe Road Plyrnouih Devon PLI 3AE Accountants Wills AccouJ)tants 2 Endeavour Ilouse Parkway Court Longbridgc Rd Plymouth PL6 8LR Page I
China Fleet Trnst Trustees, Report TRUSTEES, ANNUAL REPORT FOR THE YEAIi ENDED 31 MAY 2024 The 'fruslees present thcir annua] repoTt together with the audited fitwlcial slaterncnls of the Charity for the rIOd I June 2023 to 31 May 2024. The Annual Report serves the puryoses of both a Truslecs, i'eport and Dircctors, report undcr Company Law. The Trustees confrn that thc Annual Report ad financia] statemcnls of the eharitable company comply with the current statutory requii'cmcnts. requirements of the charitable companvs govcming document and the pi'ovisioi]s of the Sialemciit of Recoinmendcd Practice (SORP) applicable io charities preparing Ihcir accounts in accordancc with the FinanciaI Rcpoiting Standard applicable in the UK and Republic of Jitland (FRS102) (efftctivc January 2022). CHAtR OF TRUSTEES REPORT Having now bccn in the role as Chair of TTUStees for a Itttlc over 18 month& (he Trust CEO and I have set about ensuring that evcry aspect of the enterprise is performing and dclivering against the Sti'alcgic Pi'iorilies and measured against a thorough risk management profile. Several key eaS of the charity have F£en studied with several newpieces of legislation produced consequently, enwing good govemance is maintained in evely &8pect of the enterprise. The conclusion of the Retsm lo Growth Trust Sub Working wup (TSWG) h&s mapped out an ambitious grollrth agenda for the ch'lty and our wholly owned trading subsidiary over the next 5 years. This focus will requir¢ continued investment in a modernisation programme of the Club by Ihe Trust and together with a Inore effi¢ient trading subsidiary will see the potential for fither gromrth and expansion of the offering to our beneficiaries. A detailed TSWG instigated into the Trust's Reserves Policy, with new doctrine publishe4 this has been honed using the experience gained during the f]nancial shocks of the CV19 Pandemic and war in Ukraii)e / cost of living cri51S. A more realistic rUre for minimum reserves has now been approved by applying scientific logic to produce requisite levels. In the beneficiary space the previous Strategic Plan (SP) targets for expected usage had been regularly exceeded over the period of the It 3 years. A lW set of beneficiary KeyPerfornarLee Indicators (KPIS) have now been sel more reflective of the current increased usage figures and will provide a stern challenge for a]1 conne¢t¢d with the Club to maintain. The Financial Year (FY) has providel once more, a fresh set of challenges, achievements and possibilities. The FY commenttd with a bumper summer 2023 season in terms of revenue and profit generation. this set the enterprise on a sound footing to realise its growth targets for the FY. However. a challenging autumn, winter and spring westher pictsre provided a sage reminder that & guarantee of success in the delivery of gromrth cannot be relied upon without some external factors aligning. 'fiie last 8 months of the FY saw revenue maintain at good levels within our trading subsid1, however its profitability was lllt by the triumvirate of emergent defects, higher than expected pa011 costs and an tnclcment wcathcr picture. At the end of Qtr l of the FY forecasts were predicttng a potential Gift Aid for the FY of c. £600L at the end of the FY this has fallen to a figure c.£446k.'fhis figurc will a record for the enterprise and although Ii)wcr than had been foree&sL the fact that all are disappointed by tl)e end figure, the growth ambition remains a realistic target. The Enterprise undcrtook a rcvicw of its 5-year Strategic Pl7 (SP). amending priorities and objectivcs in line with the changing bu5incss outlook The plan h&s become more ambitiou4 set atnongst the backdiDp of cautious but optimistic groThth 8bItion. The following princapal Stratcgic Themes un(krpin the SP objectives foi. the future period.. Providing exccllcnt beneficiary propositions and sustaining strong Icve]s of usage. Ensure the successful perfomiance and growth of our business. Ensure that the Group's busincss is rclcvant. vibranl commercially successfuL sustainabl4 and focused on cugtomer needs. Maintain lii8h standards of governance and fujancial manag¢menL Page 2
China Fleet Trust Trustees, Report In SUPPDrt of the principal themes 9 key workstreams were identified and this instigated a series of Tn SUworkIng Groups (TSWQ) to faeilitale delivery against the SP- Workstreams Produce bottom-up assessmenl to support £lm Company profit wnbition by 2027128 and identify kcy su ortin stc and sensitivities. 2. Review and redefine Trust Reserves Policy. 3. Company budget 2024125 to reflect baseline capexlrepairs and r¢WlS in support of grolvth and energy sustainabilit enda. 4. Company to work up business c&ses on revenue growthlenergy sustainability from menu of options, for Cment with Trustees durin the 5. Consider nierits of a re- lannin 6. Implement new Campaiiy IT system. lication for new lod e-st le accommodalian. 7. Continue development of ihe plan for increasing energy s¢lf-$ufficien¢yl$ustaintbility. and ¢bOn emissions reductions buildin on receni TSWG work. 8. Develop options for use of 'spare land,. 9. Conclude stakeholdei outreach work and pi'odu¢e implementation plan. Outcomes are reported to Trustees resularly and at each Trust Board meeting. Several worksticwns have ¢on¢luded and the outcomes are now bcing re&lised. The enterprise's number onc priority remains lo provide quality leisure and recreational facilities for our beneficiaries. This priority has been rea1rrned in the latest Strategic Pla where a new KPI of & minimum of15,000 visits by serving beneficiaries pcr annum is now SCL This figure is double the previous tsrget and indicative of the Club being used in rccord numbers by our bcneficiaries. Dwing the FY the Club ircorded over 44,400 visits by both serving and exlforn)er Serving beneficiaries. The board of Truslec.8 has been enhanced with some changes over the last FY. The Corninanding Officer of E.IMS Raleigh has been wclcomed onto the board. This key Royal Nllvy (RN) appoinlmcnl brings dic number of serving I'rustees lo rive of eleven. Another key change saw Sarah Adkins sland down &8 A Trustee after serving the InlMuM term of 10 yeoxs. The Trust was deliglited that Sarah accepted a role to continue as an ambassador of the charity. Her legal expertise on Ihc board had contributed lo maY facets of the Trnst's business and the Trustees were pleased 10 recruit a successor, Nikki Jonas, who brings a wealth of legal knowledge lo be8r. The b0d of Tr81te$ h&ve backed th¢ growth agend& of the enterprise and h&ve approved some key irnprovements to the Club over the 18St 12 months. The rerbIshm¢nt of ihe Club's Brasserie restaurant was a particular highlight. where the Trust invited the Royal Navy's Chef of thc Year to officially On the upgraded facility in mch. Further investments over the year saw the second phase of solar PV installalion ¢omplete. With the addition of 225kWH of further electrical energy now generated onsite this lakes the lolal Solar PV self-generation to c.400kWh. Looking ahead to the coming Financial Year, the Trust continues to back the Enterprise's growth ambition with record levels of investment in Capilai Expenditure 8pproved in the budget which will enhanee, improve and modernise the Club to ensure it rem he venue of choice for our Lrneficiaries, members and visitors. Sign ujr:.. Datc.. Rear Admiral J S Weale CB OBE Chair'of the Truste¢s China Fleet Trust Page 3
China Fleet Trust Trustees, Report OIJJECTIVES Al A[VITIEs a. Polieies and Objeetives The objective of the Trust is lo provide leisure and recre8tion8] facilities for all officers and tingS of the Royal Naval forces, including Reserves, Royal Fleet AuxiliaTy personnel, their families, 9md dependants (collcctively known &$ "the b¢neficiaries"). Additional beiieficiary classcs include ex Royal Naval Foi'ees and othcr FOrS attached lo or embedded within Roydl Navy Units and their families Ihus satisfying the public benefit test <ihe pi'omotion of the efficiency of the armed forces of the crown). The declaration of Trust provides the Trustees with wide discretionary investment powers to achieve the objective of the Trust. To furth. its objeclive the Trusl has developed the China Fle£t Country Club 21 Sali&8h ("the Club,). b. Pllblie Benefit The Ti'ustees have paid due regard to the Charity Commission's guldance on public benefit in deciding what activities the Charity should undertake and liave directed the Company aeeordingly. The Trustees consider that their Charitable a¢livi11¢s fall within the descriptions of Gharitable pw'poses set out in Ihe Charities Aet and are for the public bertefil as sel out below. "The promotion of the efficiency ofthc Armcd Forces of the Cromm, or of the ¢[cl¢neY of the poli¢e, fire and res¢ue scrvices or ambulance services" The Charity satisfies the public bcnefit lest in the provision of sportin& leisurc and recrcalional facilitics, includins accommodation for the use of their beneficiaries. being ALL serving personnel of the Royal Navy and Royal Marines, Reserves and Royal Fleet Auxiliary personnel and their immediate fwnilies and Additional Selfied personnel as outlined in par& 4 numbering in total over 800,000. T'he Trustees believe that by providing such facilitie4 the beneficiaries relum to aclive duty rcfreshed. relaxed and ready to face their next tasK thus maintaining 8nd inere&8ing Ilieir efficicncy in Ihc defence of the realzn. This conviction continues lo be endorsel commended and encouraged by the Royal Navy's ¢hain of eommand. The 'fru$tees have considered the matter of detriment and harni and arc ¢onten¢ that neither arises from the Trust's charilable activities. Page 4
Cbina Fleet Trust Trustees, Report STRATEGIC REPORT ACHIEVEMENTS AIYD PERFORMANCE a. Tr2ding Subsidiary (Chin2 Fleet Country Club LiJnited-'the Company,) The 2(J23 to 2028 Strategic Plan recognises that the fiDallcial stability of the Charity is dcpcndcnt upon the good husbandry of the Charity's own assets avtd the revenue generated and cotntncrctal viability of its trading subsidiary. The Company has achieved much during this FY at]d havc rcalised record revenue fiEureq for the Club. This is a fant&slic ac¢olade and testament to the Company rising to the challcngcs as set in the Trust'5 Strategic Plan. Although a record revenue was tsenerAte( the profitability forecast in the budget was not achieved and thc Company management team have been directed to provide more accurate forecasting of budget Snd and profitability in future iterations. This area for improvcmcnt does not detract from the fact the trading subsidiary has generated the largest Gift Aid payment to the Trust on recor at £446k. The Company team successfully implemented several new fa¢ilitie4 improvements aod upgrades to the Club over the course of the FY. Some of the k¢y proj¢¢ls completed included a major refurbishment of the Brasserie restsurant (with menu relaunch), installation of a new Waste Treatment Plaut &8 part of ongoing essential infrastructure Upades. new golf course siage throughout the course, a new short game ea for the golf course, refurbishment of the golf sho new Conference & Events tsbles which will speed up turnosound times of the facility. installation of all easily accessible ramp to the upper tier of the accommcmlation complex and a plethord of minor enhancements throughout the Club. The Company has been rewarded for their service to the Club's patrons and visitors with many awards during the year. Winning the SW wedding venue of the year (fown ¢at¢gory) for the 3, Ye in a row being a highligh¢ along with the Company being recognised a Silver Arnied Forces Covenant recipient of the Employer Recognition Scheme. Employing 2É14 personnel in Southeast Cornwall, sees the Compatly ls one of the larger employers in the are4 this enhances the loed eeonomyj provides employment OprtUnItieS for locals and helps attract visitors from afar into the region. b. China Fleet Trust 2023124 has been a stellar year for engagement with our beneficiaries, sentor leaders and charity P¥rtners. This pivotal aspect of Trust business ensures the Trus¢ its Club and trading subsidiary reinain alive to and able to offer counters to the pressures. challenges and stresses of service. The Trust11&8 been proud to host visitation by the Second Sea LA)r(L the first for almost a decade, 2nd the Fleet Commander during this FY. Having 2 of the 3 principals of the Royal N&vy visit demonstrates that lh¢ Club continues to be an important assel for the Royal Navy and it8 personnel. The Trust was especially proud to support the endeavour of the submariners of HMS Oardacious through the ycar. The team launched thcir 2023 catnpaign lo row the Atlantic ocea in the TOUeSt Row" at the Club with a n8Juing ceremonyfor their boat which saw'captain Jim" blessed as trt ofthe evening. All involved with the Club were tracking the progress of tcam thrOu10utthCirfeat of endurdnce duringthe witlter months. Itwas thrilling to see HMS 08rdacious arrive in first place at the finish line in Ilntigua aftcr thcir 3.000 mile row and 35 days aboard Captsin Jim. Thc enterprise intends lo continue its support to HMS Oardacious in the coming year with the first ever serving military women's crew (the Valkyries) attcrnpl thc crossing in Dccemlw 2024. Page 5
China Fleet Trust Trustees, Report Routine visilalion occurred throughout the year by key beneficiary group4 p2rtner charities and command teams which included: BRNC, 47 Cdo, EWO Desig Courses. Commanding Officcr Desig Courses, Submarine Coxn courses, E.IMS Raleigh, HMS Victorious, RNRMC, RNBT, RMA. RNA RN FPS. NCC, fEC, WEA. SSAFA, Greenwich Hospital. 29 Cdo. CTCRM, NBC(D), CTP, Dcvon URNU. HMS Audacious, HMS NOrthUmrIan& JHG(SW. HN(S Tam2r, RM'S PT Branch, HMS Drake. HMS Courageous Volunlccrs, RNAS Culdrose, RNAS Ycovilton, HMS Bulwdrk, attendance at ISL'S conference for Wols, Capt R&A. 30 Cdo IX. Vice Admiral Sir Chris Gardner of SDA RN Rugby Unio support to the Ten Tors, National AFD support in Fa]Inouth and RN Golf. All new recruits and officer candidates joining the Royal Navy ]d Royal Marines now have the OppOrnItY to visit thc Club during phase 1 training with an acquaintance visit to their Club. This offer is sel to expand to inclu(k RFA personnel in the coming year. The Trust's Beneficiary Committec IBenCom) chair changed hands with WOI Andrew Collacott RM taking on the role from tlie departing WOI Paul Todd. The Bencom was extensively reinvigorated tn prcvious years, with new Terms of Reference produced to enablc thc committcc to bc more involvcd in the decision making at key times in the enterprise's calendar year. The committee continues to deliver and provide beneficiary focus at all levels of the Club. with 28 dcvoted Serving, cxlformcr-scrving and extcrnal partncr OlEanisalion representatives all woi'king hard to extol the virtues of the Club in their domai The cumulative effort of the visit progranime for senior lead Beneficiary Cominittee support, the Company's staff. Trustees and the CEO have seen knefi¢iary numbers rise to record levels of visitation. Tables l and 2 show the rise in beneficiary usage in both the serving ond ex I former serving beneficiary cadres, with total visitation figures exceeding 44,400 visits over the year. This level of visitatiork means that the Club retains its credibility amongst our beneficiaries and is a key metric of how the charity is delivering on its charitsble objective: ChInaFle8tPMttry Bgntlldary Usag•'Equlvolenee.Ypar.End 2018'to2024 ?OIF119 2019120 0202V22 •20231¥ PtrYOIryv&5 PrfmiryeenÈfidbryFafjiwtsthed Prlmary Benèflclary V15its Prlmary Ber1e(lary Fadlltles115ed. 95 YearEnd 2n8119 201912D 20201 202V22 202Y 2023124 ".70 4nfi .B714 23315 15281 28E87 al Table l. Serving B¢nefJciary Usage Trend Anatysis- last 6 years Page 6
CbiDa Fleet Trust Truste, Report .ChlnaReet Ex4ervlng Benefjclary Usage"EqulvalencgYear End 2018 tti 2024 "w?6151io ,uRDII112 20D125 E4:sÈnrfr4¥a&it*esU¥d. Ex-ser¥ln8.. Irislts" YÈtirEDEI". . Fadlltle5Used .28774 201912ts' .22411 20/22.. 202¥23. 2023124 '.29¢ Table 2. Ex l Forn)er Serying Beneficiary Usage Trend Analysis 'P8ge7
China Fleet Trust Trustees, Report FINANCIAL REVIEW a. Financial Revieiv The Trustccs present their rewTrrl and financial statements for year ended 31 May 2024. The enterprise has registered its best year of Tevcnue gcneration over the FY with consolidated revenue for the ytrar postcd as £6.750k comp8red to thc prcvious year of 202Y23 which Eeneratcd income of £6,351k. Within total Income is the China Fleet County Club Limited (the Company), whid] carries out non charitable tradinrr activities for the Charity. Thc Company generated sa]es (net of Trust) of £5.435k {2023 £5,201k). gcnerating a profit of £446k (2023.. £227k). This will represent a potentia] Gift Aid to the Trust of £446k (2023= £227k). This Gift Aid payment is a record for the CompaTLy. As tlie entcrprisc provides consolidated accounts this Gift Aid is not app?nI & it is climinatcd whcn thc accounts of the Company and Trust are combined. Th¢ Tt r¢port a netmovement ID funds of £47k (2023 negative movement of£226k). Although the Movllellt of £47k is after depreciation has been taken off of £397k aud lo&qes on disposals of £82k, thus excluding depreciation alld1085es on disposals there is a net positive moment in funds of £526k The consolidated cash at bank at the year-end is £682k (2023.. £846k). The enterprise has strived to drive down debt exposure over the last few years, that said the Trust are awgxe of the need to invest and may accrue some additional debt in the years ahead to fund their growth atnbition. The balance of the Green SME loan opened to fund the solar PV inslallation h&s Ixen drawn down further to complete the installation through the FY and at year end stood at £222k {2023.' £159k). The Coronavirus Business Interruption Loan Scheme (CBLLS) has been steadily reduced through the FY and at year end stands at £54k oulslanding {2023: £195k). When added to & long- terrn HSBC consolidated business loan of £313k outstanding at Ye end (2023.. £389k). Despite drawing down against the new green SME loan during the FY, the overall debi for Ille enterprise has fallen to £589k at year end (2023.. £743k). Trustees have approved the pay down orth¢ CBILS loan Etfore October 2024, which will take effect during the coming FY. The Trust ¢ommissions Sarasin and Partner LLP to manage its main asset4 the long and medium-terni investment portfolios. The Trust gains regular updates from Ilie portfolio man8geinent team, who attend Trust tneetings to talk through performance. Performance of Sarasin & Partner has been behind the Ixnchmark for some time and Trustees are, as part of a wider reserves and investment strategy investigating options to ensure that tlie best possible retums are being made of the Trust's setS for the good of the chily. A decision was made at the Trust's May 24 board meeting to close the medium-term portfolio held with Sarnsin & Partners and invest the money in a high interest Money Market account with HSBC. The medium-term portfolio h8d stsgnated and Itsd not generated any income for the Trust over the last 3 y¢s. At year end the value of the medium-temi portfolio was £84k (2023: £82k). The long-terni portfolio h&8 benefited from the switch to more globally focussed indices and finished the year strong a£ter market turbulence had been experieneed through the FY. At year end the long-tern) portfolio stands at £967k (2023: £867k). In total the year end Investments stand at £1.051k (2023-. 943k).' Total Reserves now stand at £8,828k {2023: £8,78 Ik) of which £31 Ik {2023: £324k) are restricted funds. Of the £8,517k {2023= £8,457k) in Unrcstricted Rcscrvcs. dcsignatcd rcscrvcs starLd at £8,517k {2023.. £8,699k), with £nil (2023= £24k) &s general unrcstricted reserves. The Trust Is in comtnunication with HMRC gardillg a routinc VAT Inspcction following thc raising of an assessment of a previous VAT return. HIRc havc indicalcd that thc insFclion ts to be cxtended to consider later VAT returns 5ub]Ditte¢ followig Ihc original asscssmcnL This a&8cssmcnt of rcttwns, conclusiorL and outcome will not be concluded prior to thc filing deadlinc for this Fancial year. At this stage it is impossible to determine the outcome of HNIRC s inspcction or if any financial implications may arise. Tlie TnLStees have 8pproved the addition of a conlingcnt liability nofr in relation to this within the consolidated accounts. Page 8
China Fleet Trust TrllSte' Report b. Going Contern The Charity 15 dependent uwn its wholly owned subsidiarys The China Fleet Country Club Ltd ("The CompanJP? to rnan&.e the facility on behalf of its bencficiarics. Thc Trustees take confidencc in the continued strong pcrforrnalle£ of our Company and arc rcasswed that their metrics for gauging and considcTing"Going Concen)" are accuratc and fitfor purpose. Having cmcrged from a period of financial uncertainty. due to globaI factors, in recent FYS. the rcturn to growth of the e&erprISe has enabled confidence to invest in infrastructure and additional facilitics, a true measure of a positive going conce The Trustccs remairL confident thatthe Going Concern of the cnterprise rematns credible 8nd are confident ofancnduring period of .WEh and increasing Gift Aid potential. A Going Concern Lsscssmcnt of the enterprise is recorded at Trst meeting and the forecasts for this coming financial year provide sufficient evidencc for Truslccs to remain confident tl)at the business remains viable and in good shape to deal with any possible s¢enarios that may present. . Reserves Policy The Trustees initiated a Sub Working Group to undertake a i'eserves study duriThg this FY. This study concluded that the level of unrestricted designated reserves (that is those funds that freely available and does not include the designated land 9d buildings reserve, but does include investment portfolio and ea8h in the Trust's business bank account) are held to cover the following: The continuing need to maintain the infrastructure, fabric and plant li¢ensed by the Company. To cover the need lo finance the evolution and development of the facility to Create new and innovative income streams. To provide a fin8fflcial buffer against a slump in the economic marketplace resulting in a dramatic fall in the tllarket value of the investments. To provide for a contingency for the Company should it become nec¢&8ary. As of 31 May 2024, the attached financial statetnents show art unrestricted reserve of £8,518k (2023.. £8,458k) and restricted reserves of £31 Ik (2023.. £324k) gtving tota] reseryes of £8,828k (2023.. £8,78 Ik). Freehold property within tsmgible f]xed &8sels stand at a nei Ix)ok value of £8,021k (2023: £8,215k), withtn total tangible fjxed 8ssets of £8,870k (2023: £8,679k). PLANS FOR THE FUTURE Trustees have approved a gym refurbishment in September 24, which witl see the renewal of CV. slatic equiprnent with & full modernisation overhaul of facilities. A ncw mczz81llc Icvcl will be created by utilising some of the spare void space that was cleverly dcsigncd into the main fabric of the Club's internal dimensions dwtng the build of the Club. This clcvcr futurc proofing will enable a new"Box 12" fitness suite to be instaIled encompassing a technology bascd 12-station boxing themed circuit. Thc lower haif of thc ]llan1c will be used to enha[e the staff facilities by providing a new, larger staff room. Install a 600kWh ground mountcd solar array in thc Club's spare 10-acrc piece of land- subject to a successful £200k Matched funding bid through Cornwatt Council's Shared Prosperity Fund and requisite planning permission (£665k project). Trustees will consider a proposaI to install a Deep Green datacentre which would allowthe harnessing of power generated by the data centre lo be used to heat the Club's swimming pool. This will reduce carbon emissions and thc cntcrprisc's rcliancc on gas. Ixgal due diligence checks are ongoing to assess feasibility of this proposal for the charity. Allocatc and approve budget CapEx and Rcpairs & Rerthvals funding for ourtrading subsidiary to keep the Club looking fit for purp05C, tnodern and a vcnue of thoice for our beneficiaries, members 2nd visitors (£584k approvcd vicc 2023: £433k). Pay off rcmaining balancc of CBILS loan by Oct 24. Develop the Trust's Investment strategy. collabordting. with fellow RN charity partners to ensure that the Trust sees the best return on inveslment for the charity's reserve portfolio. Ensure every decision made by the enterprise is viewed through the lens of our beneficiaries and meet5 with our charitable obj¢ctives. Page 9
China Fleet Trust Trnstees, Report Continuc to be relevant and remain a viable leisure and recreational facility for our beneficiaries and their families. Continue to learn from the experience and implement any Lessons Identified into future Risk MaJJagement. Capilaiisc on grdnt opportunities to drive towards our net zcro ci)mmitments. Continue to engage with and Collarat¢ with our IneficIary faciTJg busincsscs, such as Costs1 Slimstoc AEUK, Babcock Intcrnationa], Jacobs. LONG TERM AsplliATIONS Once conditions allow and fjnances are in place there is a long-held Aspirition lo increasc the accommodation offering at the Club to include lodge style f&ciliti&s. 111is project has beenthe subject of scvcral fcasibility studies in previous years and Trustees feel that the conditions arc not favourablc CUiTsntly lo advance this project. It remains a longer-terin goal within the current Strategic Plan timefr8me. P12n to install a High Ropes, Jump Tower and Zip Wire fAcility llt the Club ivhen ffftancial conditions allow, which will enhance the fart]ily friendly facilities available lo our ier1e12r[¢s. Consider the potential of land acquisition ofthe neighbouring plots. There may aonce in ageneration opportunity to acquire additional land Ix)rdering the Club. This would wed to future proof the Club further and provide opportunities for further expansion of facilities and essential infraslructtw¢ which will pave the way for fiwther growilL Continue lo drive tOWdS halving the Club's net zero Miissions by 2030, the Club has done much to advance this process and tlje Tnte¢S are confIdent of meeting this initial target ahead of 2030. STRUCTURE, GOVERNANCE ATKD KINAGEMENT Constitution Chtna Fleet Trust is registered as a charitable company limited by guardntee, number 1135918 8md was set up by a Trust deed. It is governed by its Memorandum of AsslatiOn dated 10 December 2009 and Articles of Association dated 3 Februory 2020. The Trust is governed and directed by its Board of Trustees with operational management delegated to the Chairman and a Chief Executive. Tlie Board of Trustees meet as required but at least three times a year. The Trust maintains an office at Sait&sh where the Chief Executive executes his duties. The Chairman makes regular visits to the office to deal with matters arising and is a co-signatory with the Chief Executive plus two other Trustees for SIlg cheques. The declaration of Trust requires that the totat number of Trustees shall not be less than fo.. New Trustees are appointed either by virttie of military appointment or an open recruitment proee&8. The current Trustees listed above. The Trust operate a Governance and Remuneration (G&R) Committee to advis¢ the wider Trust Board on matters of Governance and Remuneration. This Committee is made up of a minimwn of three unconfiicted Trustees. Tliis Committee does not absolve the wider Trustees of their responsibilities tOWdS overall Governance of the Charity. The facilities of the Club are operated by a wholly owned subsidiary compatLy, China Fleet Country Club Limited (""the Compan,). The Trust lias a 5-year nonexclusive OFrating Agreement (OA)(signed on 3 ISI March 2023) for the Company lo operate the Club and act as agent for the Trust in providing on site leisure and recreational facilities for the beneficiaries. The performance of this agreement is rcvicwed arUallY by the Trust and Company, with any variatLOIIS signed by both parties and filed with the Trust's solicitors. Womble Bond Diekinson (UK) LLP. Mr Roixrt Baldry is currently the non-executive ChaiTan of the Board of Directors of the CoTnpany. The China Fleet Country Club Beneficiaries Committee (Benconi) is chair¢d byascrving Trustcc, Warrant Officcr First Class Paul Tod(L wlio aIso attends the Company board meetings. WOE Todd resigned as a Trustee in November 2023 in preparation for leaving service and has now handed over tbe role as a Tnjstee and Bencom Chair to another serving Warrant Officer First Class, Andrew Collacott Royal Marines. Mr Deall Bennett (Company MD) Lttends meetings of the Trustees and Jneetings of the Chink Fleet Country Club Bencom. The Trust follows the Statement of Recommended Praciice"Accounting and Reporting by Charities" (FRS 102 Jan 2022 edition). Page 10
China Fleet Trust Truste&s' Report b. Risk Management The'fru5tees mcct rcgularly to SesS busincss risks and implemcnt risk rnanagement strategies. This process is managed by the Trust CEO. asses5cd by the GoverJ)ance and Remuneration cotntnittee and approved by thc wider board of Trustees. This involvcs identifying the typcs of risks the Charity faccs, prioritising them in terms of potential impact and likelihood of occurrence and identifying means of mitigating the rffisks idcntificd in the Trust Risk Rcgisler, which is aligncd with the Company Risk Rcgisler regularly. The Trustees pleased to rcport that the Charity's internal fmancial contro15 comply in a]1 respects with guidelines isslled by the Charity Commission. The Trustees conlinue to promotc procedures to ensurc that forward lookin& continuous risk management proccsses become part of the operating culture of the charity and its trading Company. Thc risk management systems have been fully tested over the last few ye8n and the Trust are confident that their performance h%Lq helped to ensure ihc continued success of the enterprise despite the volatile operating environment that has pcrtained due to the impacts of CV19, War in Ukraine, Inflation and cost4)f-living ¢risis. These systems continue to offer as5urancc that the enterprise is well placed to deal with any cmcrgcnt events. c. Remuneratio The Trust's only saIaried employe4 the Chief Executive is appratsed annually by the Chainnan of the Trustees and o other Trustee with recommendations made to the Governance and Remuneration Committee for the approval of arLy rise in salary. A benchmarking exercise w&8 conducted by the Governance and Remuneration committee during the FY to ensure that the salary offered is proportional. fair and me&sured against similar military charities. Senior Company staff, inoluding the NE chairma atso appraised annually and recommendations for their remuneration are also presented to Tnee8 for approval via the Governance and Remuneration Corrunittee and detailed within the annual budget. d. Other Relevant Sourcu of Professional Advi¢¢ Investment Managers - Sar8sin and Partners LLP. This company manages the Trust's long-terni and medium-term investment portfolios. Address-juxon House, 100 St Paul's Churd]yard, IA)ndon, EC4M 8BU. STA TEMENf OF TRUSTEES, RLSPONSIBILITIES The Trustees (who are also the directors of the Charity for the purposes of company laiv) are responsible for prepaying the Trustees, Annual Report including the StrategTc Report and the fmancial statements in accordance with applicable law and United Kingdom Accounting Standards Iuntted Kingdom Generally Accepted Ac¢ounting Practice). Company law requires the Trustees to prepare financial statements for each ffftancial entity. Under company law, the Trustees must not appmve the fancIal slatcments unless they are satisfied that they give a te and fair view of the slate of Èffairs of the Group 8nd the Charity and of their incoming resources and application of resources, including their income and expenditure. for that ttrio(L In preparing these fin8ncial statement4 the Trustees are required to: select suitable accounting policies and thcn apply them consistently. observc the methods and principles of the Charities SORP. n]ake judgements and accounting eslimates Éhat are reasonable and prudenL slate whether applicable UK Accountiryg Standards (FRS 102) have been followel subject to any mateTial departures disclosed and explained in t1 financial slatements: prcparc the financial statcments on the going concern basis unlc&8 it is inappropriate to presume that the Group will continue in business. The Trustees are responsible for keeping adequate accounttng records that are sufficient to sliow and explain thc Group and the Charitgs transactions and disclose with rcasonablc accuracy at any titnc thc financial position of the Group the Charity and enable them to ensure that ihe financial statements cojriply with the Companies Act 2006. They arc also rcsponsible for safeguarding the assets of the Gmup and the Charity and hence for tsking reasonable steps for the prevcntion and detcction of fraud and other irre8ul8rities. The Tinst¢es are responsible for the matntenance and integrity of the corporate and financial information in¢luded on the charitable company's websitc. L£gislation in the United KiDgdom governing the preparation and diss¢mination of financial statements may differ fiorn legislation in other jurisdictions. Page 11
China Fleet Trust Trnstees, Report FUM)S HEI LD AS CUSTODLIN TRUSTEE ON BEHALF OF OTHERS There are no ndS held as custodian trustee on behf of another entity. DISCLOSURE OF IP4FORLVIATION TO AUDITORS Each of the persons wlio are Trustccs at the time when this Tste¢S. Report is approved has confIrmed that.. so far as tliat Trustee is aware. there is no relevant audit inforniation of which the eharitablc group's auditors are unaware. and that Ti'ustee has takcn atl the steps Ibat ought to have be£n takcn as aTNstec tn order to be 2ware of any rclcvant audit information and to establish that the charitable 0up'S auditors are aware of that information, and the enterprise, that is thc Charity and its wholly owned tradtng subsidiary, remains a viablc Going Concern. AUDITORS Thc Trustccs undertook a benchmarking exercise to ensure value for money was being achieved from the fM of auditors during the FY after i proposed incre&8e in audit premiums of somc 400/0 was received from the enterprise's previous auditors 03ishop Fleming LLP). This process saw 5 firms exarninel with Thompson Jenner LLP being offered the contracL This FY'S audit lias been Thompson Jenners first audit with the eT]terprise and Trustees have been impressed with their professionalism, thoroughDe&8 and drive to understand all aspects of the enteiprise. The auditors, Thompson Jenner LLF. have indicated their willing[$ lo continue in office. The des1ated TrteeS will propose a motion reappointing the audltors at a meeting of the Txuslees in NovemLKr. APPROVAL OF THE TRUSTEES, ANNUAL REPORT: Approved by o f the members of the board of Trustees gnd signed on their behalf by: Si£nature.' Date-.............. Re Admir81 J S Weale CB OBE Chair of the Trustees Chin& Fleet Trust Page 12
China Fleet Trust Independent Auditor's Report to the Members of China Fleet Trust Opinion We have audited the financial statements of China Fleet Trust (the 'charitable parent company,) and its subsidiaries (the 'group') for tELe year ended 31 May 2024. which comprise the Consolidated Statement of Financial Activitie5, Consolidated Balance Sheet. Balance Sheet, Consolidated Statement of C8sh Flow5, Statement of Cash Flows and Notes to the Financial Ststements. including a summary of significarLt accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements- give a true and fair view of the state of the tsroup's and parent charity's affairs as at 31 May 2024 and of its incoming rcsources and application of resources, including its income and expenditure, for tiie year then have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS IUK)) and applicable law. Our responsibilities under those standards are fijrther described in the auditor responsibilities for the audit of the financial ststements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethic Standard, and we have fulfilled our other ethical responsibilities in accordance witli these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to pit)vide a basis for our opinion. Other matter The financial statements of the Charity for the year ended 31 May 2023 were audited by another auditor who expressed an utimodifIed opinion on those statements on 7 December 2023. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trnstee use of the going concern basis of accounting in the preparation of the fInancAal statements is appropriate. Based on the work we have perfomied, we have Dot identified any material uncertainties relating to events or conditions thaL individually or collectively. may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue. Our responsibilities alld the responsibilities ofthe trustee with respect to going concern are desci'ibed in the relevant secttons of this report. Other inforniation The trustee is responsible for the other infornlation. Tbe other infonnation cornpiises the infomiation included in tlie annual .report, other than tlie fmancial statements and our auditor's report tliereon. Our opinion on the financial statements does not cover the other information and. except to the extent othenvise explicitly stated in our repor¢ we,.do not express any forn) of assurance conGlusion thereon. Page 13
China Fleet Trust Independent Allditorls Report to the Members of China Fleet Trust In connection with our audit of the financiaI statements, our responsibility is to read the other infomiation an in doing so. consider whether the other information is materially inconsistent with tile financial statements or our knowledge obtained in the audit or othenvlse appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have perfornied, we conclude that there is a material misstatement of this other inforniation, we are required to report that fact. We have nothing to report in this regard. Opinion on other matter prescribed by the Companies Aet 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Chaivs Report and Trustee's Report for the financial year for which the financial ststements are prepared is consistent with the financial statements" and the Chails Report and Trustee's Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptio In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identifLed nterIal misstatements in the Chaies Report and the Trustee's Report. We have nothing to repoit in respect of the following matters where the Companies Act 2006 I'equires us to i'epoit to you if, in our opinion: adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us. or tlie parent eh.1tablc company financial statements are not in agreement with the accounting i'ecords and certain disclosures of trustee remuneration specified by law are not made. or we have not received all the infonnation and explanations we require for our audit. Responsibilities of trustee As explained more fully in the Statement of Tntees, ResponsTbilities (set out on page I l), the trustee a Itsponsible for the preparation of the financial statements and for being satisfied that they give a tsue and fair view, and for such internal control as the trustee detern]ine is necessary to enable the prepardtion of financial statements that are free from material misstatemenL whether due to fraud or error. In preparing the financial statements, the trustee are responsible for assessing tILe cliarity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the ttILStee eitlier intend to liquidate the charity or to cease operations, or have no realistic attsi'native but to do so. Auditor responsibilities for the audit of the finaneial stAteellts Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. wliether due to fraud or enY)r, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when It exists. Misstatements can 2rise from fraud or error and are considered material if, individually or in tlie aggregate, they could reasonably be expected to influen¢¢ th¢ ¢¢onomiG deGisions of users taken on the basis of these financial stat¢m¢nts. Page 14
China FIeet Trust Independent Auditor's Report to the Members of China Fleet Trust The extent to whicli our procedures are capable of detecting iegular1tLes, including fraud is detailed below: Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of iiTegularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. The extent to which the audit was considered capable of detecting irregul&riti&8 including fraud Our approach to identifying and assessing the risks of material misstatement in respect of iegUlar1ties, including fraud and non-compliance with 12ws and regulations. was &$ follows: the engagement partner ensured that the engagement team collectively had the appropriate competsnce, apabilities and skilLs to identify or recognise non-compliance with applicable laws and regulations. we identified the laws and regulations applicable to the charity through dis¢ussions with directors and other managemenL and from our commercial knowledge and experience of the sector. we focused on specific laws and regulations which we considered may have a direct material effect on the fmanciai statements or the operations of the charity, including the Companies Act 2006,Charities Act 20 I I, taxation legislation, data protection, anti-bribery, employment, environmental, fire safety and health and safety legislation. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of managemenL reviewing licenses, certificat&s and relevant correspondence including the inspection of legal correspondence. and identifIed laws and regulations were communicated within the audit team regularly and tl)e team remained alert to instances of non-compliance throughout the audit. We assessed tlie suseeptibility of the charity's fanCIaI statements to material misstatement, includin8 obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged frdud. and rA)nsidering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud t])mugh management bias and override of controls, we: perfornied anyt1¢a[ procedures to identify any unusuaI or unexpected relationships. tested journal entries to identify unusuaI transactions- assessed whetlier judgements and assumptions made in detemiining the accounting estimates were indicative of potential bias. and investigated the rationale beliind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not linLited to: agreeing financial statcment disclosures to underlying supportinE documentation" reading the minutes of meetings of those charged with governance. enquiring of management as to actual and potentiaI litigation and claims. and reviewing Gorrespondence with HMRQ relevant regulators and th¢ ¢harity'S legal advisors. Page 15
China Fleet Trust Independent Auditor's Report to the Members of Chin2 Fleet Trust There are inherent limitations in our audit procedures described above. Tlie more removed that laws and Irgulations are from financial ti'ansactions, the less likely it is that we would becon]e aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other mlagernent and the inspection of regulatory and legal correspondence, if any. Material misststements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frG.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the GhaTitable parent company trustee in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we miglit state to the group's trustee tliose matters we are required to state to them in an audTtoi"'s report and for no othei. puOSe. To the fullest extent petinitted by law, we do not accept or assume responsibility to anyone other than the charitabl¢ pai'ent company and its trustee as a body, for our audit work, for this port, or for the opinions we have fornied. LLP Simon Lewis (S For and on beh nior f of tatutory Auditor) hompson Jenner LLP, Statutory Auditor 28 Alexandra Exmouth Devon EX8 IBD Page 16
China Fleet Trust Consolidated Statement of Financial Activities for the Year Ended 31 May 2024 ncluding Collsolidated Income and XpenditUre Account and Statement of Total Recognised Gains and Losses) UnrtrICted funds Restricted funds Total 2024 Note Income and Endowments frojn: Donations and legacies Charitable activities Other trading activities Investtnent income 4,406 1,271892 5.434,828 38.344 4,406 1,272,892 5,434,828 38,344 Totat income 6,750,470 6,750,470 Expenditure on: Raising finds Charitable activities (4,896,938) (1,865,004) (4,896,938) (1,877,323) (12,319) Total expenditure Gainsllosses on investment assets (6,761,942) 71.238 (12,319) (6,774,261) 71,238 Net incomel(expenditure) 59,766 12,319 47,447 Net movement in funds 59,766 (12,319) 47,447 Reconciliation of funds TotaI funds brought fonvard 8,457,976 323,512 8,781,488 Total funds carried forward 21 8,517,742 311,193 8,828,935 The notes on pages 23 to 44 fonn an integral part of these financial ststements. Page 17
China Fleet Trust Consolidated Statement of Financial Activities for the Year Ended 31 May 2024 ncluding Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses) (As restated) Total 2023 Unrestrieted funds Restricted funds Prior Period Note Income 2nd Endowments from: Donations and legacies Charitable activities Other trading activities Inv¢sttnent income 14,650 1,097.730 5,204.228 33.910 14.650 1,097,730 5,204,228 33.910 Total income 6,350,518 6,350,518 Expenditure on: Raising funds Charitable activities (4,883,491) 1,635,621) (4,883,491) (1,647,940 12,319) Total expenditure Gainsllosses on investment assets (6,519,112) 44,797 (L2,319) (6,531,431) (44,797) Net expenditure 213,391) (12,319) (225,710 Net movement in funds (213,391) (12.319) (225.710) Reconciliation of funds Total ndS brought forward 8,671,367 335,831 9,007,198 Total fijnds carried forni'd 21 8,457,976 323,512 8,781,488 All of the gi'oup's activities derive from continuing operations during the above two periods. The funds breakdown for 2023 is shown in note 21. The notes on pages 23 to 44 fom] an integrdl part of these financial statements. Page 18
China Fleet Trust IRegRstration number: 07100967) Consolidated Balance Sheet as at 31 May 2024 (As rtated} 2023 2024 Note Fixed assets Tangible assets Investments li 12 8.870.016 944.727 8,679,048 942,797 9,814,743 9,621,845 Current assets Stocks Debtors Cash at bank and in hand 13 14 15 172,660 140,121 681.732 145,565 189,378 846,215 994.513 1,181,158 Creditors: Amounts falling due within one year 16 (1.510,624) (1,413,217 Net current liabilities 516,111) 232,059 Total assets less current liabilities 9,298,632 9,389,786 Creditors: Amounts falling due after more than one year 17 (469,697) 8,828,935 (608,298) 8,781,488 Net assets Funds of the group: Restricted income funds Restricted fidS 21 311,193 323,512 Uni'estricted ineome funds Unrestricted fijnds 8,517,742 8,457,976 Total funds 21 8 828,935 8,781,488 financial statements on pages 17 to 44 were approved by the trustees, and authorised for issue on and Signed on their belialf by- Reat. Admiral J S Weale CB OBE Chair of the Tiustees China Fleet Trust The notes on pages 23 to 44 forn) an integral part of these fin8ncial statements. Page 19
China Fleet Trust (Registration number: 07100967) Balance Sheet as at 31 May 2024 (As restated) 2023 2024 Note Fixed Assets Tangible assets Investments 8,857,895 945,727 ,661,332 943,797 9,605,129 12 9,803,622 Current assets Debtors Casli at bank and in hand 14 15 461,930 201,042 662,972 (1,246,064 295.371 374,067 669,438 Creditors: Amounts falling due within one ye2r 16 1,092,859 Net current IIAbllitles 583,092 (423,421 Tot81 assets less current IiAbilltles 9,220,530 427,958 8,792,572 9,181,708 436,583 8,745,125 Credltors: Amounts falllng due after more than one yeAr 17 Net Assets Funds of the charlty: Rtsti'icted Sneome funds Restricted ndS 21 311,193 323,512 Unrestrieted Income funds Unrestricted ndS 8,481,379 8,421,613 Total funds 21 ,792,572 ,745,125 In&ncial statements on pages 17 to 44 were approved by the trustees, and authorised for issue on signed on their belialf by: Rear irdl J S Weale CB OBE Chair of the Trustees China Fleet Trust The notes on pages 23 to 44 fom) an integral part of these financial statements. Pacre 20
China Fleet Trust Consolidated Statement of Cash Flows for the Year Ended 31 May 2024 (As reststed) 2023 2024 Note C2sh flows from operating 2Ctivities Net cash incomel(expenditure) 47,447 (225,710) AdjllstmeDts to cash flows from non-C2sh iten Depreciation Investment income Loss on disposal of tangible fixed assets Loss on disposal of fixed assets held for the group's use Revaluation of investments 397,129 (38,344) 82,444 351.691 (33,910) 47,582 1.492 44,797 (71,238) 417,438 185,942 Working capitsl adjustments Increase in stocks De¢rease in debto In¢t'ease in creditors Incre&se in deferred income 13 14 16 17 (27,095) 49,257 50,576 66,075 (28,795) 40,352 10,442 18,748 Net cash flows from operating activities 556,251 226,689 Cash flows from investing acthvltl¢s Interest receivable and similar income Purchase of tangible fed assets Purchase of investments Sale of investments 38,344 (670,541) (14,036) 83,344 33,910 (457,655) (34,278) li 12 12 Net cash flows from investing activities 562,889 (458,023) Cash flows froxll financing aetivities Value of new loans obtained during the period Repayment of loans and borrowin&s Repayment of capital element of finance leases and HP wntracts Net cash flows from financing activities 91,921 (245,580) 4,186) 165,446 (222,002) 20,426 16 Is (157,845) (36,130 Net decrease iri cash and cash equiv21ents (164,483) 846,215 (267.464) Casli and cash equivalents at l June 1,113,679 Cash and cash equivalents at 31 May 681,732 846.215 All of the c&81] flows are derived from contlnuing operations during the above two periods. The notes on pages 23 to 44 fonn an integral part of these financial statements. Page21
China Fleet Trust Statement of Cash Flows for the Year Ended 31 May 2024 (As restated) 2023 2024 Note Cash flows from operating activities Net cash incomel(expenditure) 47,447 (225,710) Adjustments to cash flows from non-cash items Depreciation Investment income Loss on disposal of tangible fixed assets Revaluation of investtnents Loss on disposal of fixed assets held for the charity's own use 391,534 (29.809) 82,444 (71,238) 346.097 (27,716) 47,590 44,797 1,492 12 420,378 186,550 Working eapital adjustments Uncreaseydecrease in debtors Increase in creditors 14 16 (166,559) 157,627 230,618 99,262 Net casli flows from operating activities 411,446 516,430 Cash flows from Investing activities Interest receivable and similar income Puirhase of tangible fed assets Purch&8e of investments Sale of investtnents 29,809 (670,541) (14,036) 83,344 27,716 (457,655) (34278) 12 12 Net casli flows from investing activities 571,424) 464,217 Cash flows from fin2neing attivities Value of new loans obtained during the period Repayment of loans and bon'owings Net cash flows from financing activities Net (decreaseyincrease in cash 2nd cash equivaIents Cash and cash equivalents at l June 91,921 (104,968 165,446 76,600) 16 (13,047) 88,846 (173,025) 374.067 141.059 233,008 Casli and cash equivalents at 31 May 201,042 374.067 All of the cash flows are derived from continuino operations during the above two periods. The notes on pages 23 to 44 forni an integral part of these fmancial statements. Page 22
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 I Charity status The charity is limited by guararEtee. incorporated in England and Wales, and consequently does not have share capital. Each of the trustee is liable to contribute an atnount not exceeding £10 towards the assets of the charity in the event of liquidation. The address of its registered office is: China Fleet Country Club Saltash Cornwall PL12 6LI 2 Accounting policies Summary of significant Accoting policies and key YdCCOUllting estimatss The prin¢ipai accounting policies applied in the preparation of these financial statements ait set out below. These policies have been consistently applied to all the years presentsd, unless othenvise stated. Statement of Compliance The fmanciaI statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Re¢ommended Practice (applicable to ¢harities preparing their accounts in accordance with the FAnancial Reporting Standard applicable in tlie UK and Republic of Ireland (FRS 102)) (issued in O¢tober 2019) - (Charities SORP (FRS 102)), tlie Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Basis of preparation Chtna Fleet Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Basis of consolidation The consolidated fanCIal ststements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 May 2024. No statement of financial activities is presented for the charity as petmitted by section 408 of the Companies Act 2006. The charity made a profit after tsx ftjr the fmallcial year of £47,447 (2023 - loss of £225,710). Page 23
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activitie5. The results of subsidiaries acquired or disposed of during the year are included in the statement of fInancial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necess2ry, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by tlie group. The purchase method of accounting is used to account for busine&s combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of tkne assets given, equity instruments issued and liabilities incurred or assumed at the dats of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the ¢ost of the business ¢ombination over the acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill. tnter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full. Iotra-group losses are also eliminated but may indicate an impainnent that requires recognition in the consolidated financial statements. Accounting policies of subsidiaries have been Changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of Consolidated subsidiaries are identified sepaiately from the group's equity therein. Non-contsDlling interests consist of the amount of those interests at the date of tlie original business combination and lh¢ non-controlling shareholder's share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the nort-¢ontrolling interests having a deficit balance. Going concern The trustee consider that there are no material uncertainties about the group's ability to continue as a going concern nor any significant areas of uncertainty tllat affect the carrying value of assets held by the group. Page 24
China Fleet Trust Notes to the Financlal Statements for the Year Ended 31 May 2024 Prior period errors The accounts have been restated to inco01.ate the impact of tIng errors in relation to the fixed asset itgister where the enDTs related to the depreciation charged and disposals of tangible fixed assets which subsequently impact the prior period's tangible fJxed asset balance and unrestricted designated fiu]d balances carried forward. A breakdown of the irnpacted areas and restated bajances within the current yearfs financial statements are listed below: Summary of the prior year accounting impact Tangible fixed assets land and buildings Tangible fixed assets fixtures, fittings and equipment Depreciation charge land and buildings Depreciation charge fixtures, fittings and equipment 2023 Pre 2023 Tot21 (3,036) (86,784) (89,820) (34,042) {139,639) (173,681) 3,036 3,036 34,042 34,042 Unrestricted designated fixed asset reserves impacts {37,078) (226,423) (263,501) Income and endowments All income is recognised once the charity has entitlement to the income, it is probable that the income will be i'eceived and the amount of the income receivable ¢an be measui'ed reliably. Grants receivable Grants are recognised when the group has an entitlement to the funds and any conditions linked to the grants have been met. Ivhere performance conditions are attaclied to the grant and are yet to be mel the income is recognised as a liability and in¢luded on the balance sheet &s deferred income to be released. Deferred income Deferred income represents amounts received for future periods and is i'eleased to incoming i'esour¢es in the period for which, it has been received. Deferred income relates to memberships and events paid for in advance. Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is requu'ed and the amount can be measured reliably. All costs are allocated to the appllcablc expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of Tesources. with central staff costs allocated on the basts of time spent, and depreciation charges allocated on the portion of the 18set's use. Other support costs are allocated based on the spread of staff costs. Raisingfundy These are costs incurred in attracting voluntary income. the management of investments and those incurred in trading aGtivities that raise funds. Page 25
China Fleet Trust Not to the Financial Statements for the Year Ended 31 May 2024 Cliaritable aclivilies Charitable expendItLe comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to sucli activities and those costs of an indirect nature necessary to support them. Governance costs These include the costs attributable to the Gharity's compliance with constitutional and statutory requirements, including audit, strategic management and trustee's meetings and reimbursed expenses. Taxation The charity is considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definitton of a charitable company for UK corporation tsx puOses. Accordingly, the charity is potentially exempt from taxation in r¢spe¢t of income or Capitat gains received within Gategories covei'ed by Chapter 3 Part I l of the Corpoiation Tax Act 2010 or Section 256 of the Tation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Tangible f]xed Assets Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impaimient losses. Depreciation and amortisation Depreciation is provided on tangible fixed &ssets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economi¢ life as follows: Asset elass Iand Buildings Fixtures, fittings and equipment Motor vehicles, tractors & mowers Plant & machinery Depreciation method and rate not depreciated 2.40/0 straight line 150/0- 33 % straight line 200/0 Straight line 16Yo Straight line Business combinations Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group ts'ansactions, balances, income and expenses are eliminated on consolidation. In accordance with Section 35 of FRS 102, Section 19 of FRS 102 has not been applied in these fmallcial statements in respect of business combinations effected prior to the date of transition. Fixed asset investments Fixed asset investments, other than programme related investments. are included at market value at the balance sheet date. Realised gains 2nd losses on inveslments are calculated as the difference between sales proceeds and tiieir market value at the start of the year, or thèir subsequent cosL and are cliarged oi" ¢redited to the Statement of Financial Activities in the period of disposal. Unrealised gains and losses represent the movement in market values durina the year and are credited or charged to the Statement of Financial AGtivities based on the market value at the year end. Page 26
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 Trade debtors Trade debtors are amounts due from customers for merchandise sold or services perfornied in the ordinary course of business. Trade debtors are recognised Initially at the transaction price. They are subsequently measured at amortised cost usin2 the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect ail amounts due according to the original terms of the receivables. Cash and cash equivalents Casl) and cash equivalents Comprise on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cosh and are subject to an insignificant risk of ¢hange in value. Trade creditors Ti'ade creditors are obligations to pay foi. goods or services that have been acqulltd in the ordinary ¢ourse of business fiDm suppliers. Accounts payable are classified as CUiTent liabilities if the charity does not have an unconditional right, at the end of t]ie reporting period. to defer settlement of the creditor for at least ttvelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non<urrent liabilities. Trade Creditors are recognised initially at the transaction price and subsequently me&sured at amortised cost using the effective interest method. Borrowings Interest-bearing borrowings are initially recorded at fair value, net of tr8nsaction costs. Interest-bearing borrowings are subsequently ¢Tled at amortised cost, witb the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Ststement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as Cuent liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Fund structure Unrestricted income ft]nds are general fi]nds diat are available for use at the trustee's discretion sn rthcrane4 of the objectives of the gi'oup. Designated funds are unrestricted funds that have been set aside by the trustees for particular purposes and the use of each designated fund is set out in the notes to the financial statements. Restricted income funds are those donated for use in a ptiCul. area or for specific purposes, the use of which is restrACted to that area oi. puipose. Page 27
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 Financial instruments Clagsificalion The Group only has financial assets and financial liabilities of a kirkd that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction price and subsequently measured at tkneir settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 3 Income from donations and legacies Unrestricted funds Geller81 Total 2024 Grants, including capital grants. Grants from companies 4,406 4,406 4,406 4,406 Unrestricted funds General Total 2023 Grants, including capital grants" Grants from companies 14,650 14,650 14,650 14,650 4 Income from charitable activities Unrestricted funds General Total 2024 Direct charitable income from beneflciaries 1,272,892 1,272,892 Unrestrieted funds General Total 2023 Dii'ect charitable income from benefjciaries 1,097,730 1,097,730 Page 28
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 5 Investment income Unrestricted funds General Total 2024 Other investn]ent incozne 38,344 38,344 38,344 Unrestricted funds General Totsl 2023 Other investment income 33,910 33,910 33,910 33,910 6 Expenditure on charltable activities Unrestricted funds GenerAI Restricted funds Total 2024 Depreciation, atnortisation and other similar costs Stsff Costs Other operating charges Governance costs 461,659 713,978 685,330 4,037 12.319 473,978 713,978 685,330 4,037 1,877,323 1,865,004 12,319 UntriCted funds General RestrActed funds Total 2023 Depreciation, amortisation and other similar costs Staff costs Other operating charges Governance costs 381.368 602,830 637,475 13,948 12,319 393,687 602,830 637,475 13.948 1.635,621 12.319 1.647.940 Page 29
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 7 Net incomingloutgoing resources Net outgoing resources for the year include-. 2024 2023 Operating lease rentaIs Audit fees Other non-audit services Loss on disposal of fixed assets held for the group's own use Depreciation of fixed assets 147,530 4.024 12.476 82.444 397,129 235.504 4.260 11,370 47,582 351,691 8 Trustee remuneration and expenses During the year, 2 Trustees (2023.. 2) received remuneration totalling £15,787 (2023.. £14.010) from China Fleet County Club for their roles as non executive directors of the Charity's IOOO/a subsidiary) China Fleet County Club Limited. During the year, no trustees received any remuneration or other benefits from Chtna Fleet Trust (2023: 0). During the year expenses totalling £3216 were reirnbursed to Trustees {2023.' £1,953). 9 Staff eosts The aggregate payroll Costs were as follows". Group Charity 2024 2023 2024 2023 Staff costs during the year were: Wages and salaries Social security costs Pension costs 2,949,886 169,509 53.748 2,735,936 167,354 51,390 634,125 48,591 31,262 555,089 36,108 11,633 3,173,143 2,954,680 713,978 602,830 The Charity staff costs include a recliarge from the subsidiary company for managtng the facility in accordance with the operating licence. Thesc costs were £655,308 (2023: £550,070) with actual Tiust staff costs of £58,670 (2023: £52,760) Page 30
Chlna Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 The monthly average number of persons (including senior management I leadership team) employed by the group during the year was as follows: 2024 2023 Apartrnents Golf Leisure Food and beverdge Administration and establishment 26 24 19 77 62 49 Is 77 66 45 233 230 The nutnber of employees whose emoluments fell within the following bands was.. 2024 2023 £60,001- £70,000 £70,001- £80,000 The total employee benefits of the key management personnel of the group were £397,564 (2023 - £385,281). 10 Taxation The group is a registered charity and is therefore exempt from taxation. Page31
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 11 Tangible fixed Assets Group and eharity Land and buildings Furniture and equipment Plant and machinery Motor vehicles Totsl At l June 2023 Additions Disposals 9,163,149 32,405 120,875 2,291,215 638,136 54,994) 84,531 27,972 11,566,867 670,541 (196,304 (20.435 At 31 May 2024 9,074,679 2,874,357 64,096 27,972 12,041,104 DepreciAtion At l June 2023 Charge for the year Eliminated on disposals 948,607 143,605 38,431 1,844,425 247,929 54,994) 84,531 10,256 5,595 2,887,819 397,129 (113,860 (20,435 At 31 May 2024 1,053.781 2,037.360 64,096 15,851 3,171,088 Net book value At 31 May 2024 8.020.898 836,997 12,121 8,870.016 At 31 May 2023 8.214.542 446,790 17,716 8,679.048 The plant and machinery total above relates solely to China Fleet Country Club Limited. The remainder relates to the tru5L The above disclosure includes a prior year adjustment as noted within the accounting policies on page 25. This adjustment has therefore resulted in a restatements of the brought forward net book value of assetg totalling £263.501. Page 32
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 12 Fixed asset investments Group 2024 2023 Other investments 944,727 942,797 Other inv£sttnents Listed investments Total Cost or Valuation At l June 2023 Additions Revaluation Disposals At 31 May 2024 942,797 14,036 71,238 (83,344) 942,797 14,036 71,238 83,344 944,727 944,727 Net book value At 31 May 2024 944,727 944,727 At 31 May 2023 942,797 942,797 Page 33
China Fleet Trust Notes to the Finaneial Statements for the Year Ended 31 May 2024 Charity 2024 2023 Shares in group undertakings and participating interests Other investments 1.000 944.727 1,000 942,797 945,727 943.797 Shares in group undertakings and participating illterts SubsidiAry undei'tAkiiigs Total Cost At l June 2023 1,000 1,000 At 31 May 2024 1,000 1,000 Net book value At 31 May 2024 1,000 1,000 At 31 May 2023 1,000 1,000 Other investments Listed InvtMellts Total Cost or Valuation At l June 2023 Revaluation Additions Disposals 942,797 71,238 l4,036 (83,344) 942,797 71,238 14,036 (83,344) At 31 May 2024 944,727 944.727 Net book value At 31 May 2024 944,727 944,727 At 31 May 2023 942,797 942.797 Page 34
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 Details of undertakings Details of the investtnents in which the ch2rity holds 20/0 or more of the norninal value of any class of share capital are as follows- Country of incorporation Proportion of voting rights 2nd shares held Undertaking Holding 2024 2023 Subsidiaiy undertakings China Fleet County Club Limited England & Wales Ordinary Subsidiaries The profit for the financial period of China Fleet Country Club Limited was £446,415 (2023 . £226,920) and the aggregate amount of Capital and reserves at the end of the period was £37,363 (2023 ', £37,363). The principal activity of China Fleet County Club Limited is the provision of leisure facilities, golf, sp accommodatior4 conferences and weddings. 13 Stock Group Charity 2024 2023 2024 2023 Raw materials Finished goods 12,413 160,247 172,660 15,502 130,063 145,565 14 Debtors Group Charity 2024 2023 2024 2023 Ti'ade debtors Due from gmup undertakings Other debtors 18.024 18.167 446,415 15,515 226,920 68,451 122,097 140,121 171.211 189J78 461,930 295.371 15 Cash and cash eqllivalents Group Charity 2024 2023 2024 2023 Casli at bank 681,732 846,215 201.042 374,067 Page 35
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 16 Ci'editoi's: amounts falling due within one year Group Charity 2024 2023 2024 2023 Bank loans Trade creditors Hire purchase and finance leases Due to giDup undertakings Other taxation and social security Other creditors Accruats Deferred income 136,727 298.117 4,188 155.972 298,443 4,187 107,040 400 111,462 447 1,134,364 976,450 143,044 42.798 261451 623,299 101,390 50,213 245,788 557,224 4,260 4.500 1,510,624 1,413,217 1,246,064 1,092,859 Deferred income 2024 2023 Deferred income at l June 2023 Resources deferred in the period Amounts released from previous periods Deferred income at year end 557,224 623,299 557,224 538,476 557,224 538,476 623,299 557,224 Defeed incorne relates to memberships and events paid in advance. 17 Creditors: amounts falling due after one year Group Charity 2024 2023 2024 2023 Bank loans Hire purchase and finance leases 457,645 12.052 592,059 16.239 427,958 436,58) 469,697 608,298 427.958 436.583 Page 36
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 18 Operating lease commitments Operating lease Commitments Total fvture minimum lease payments under non-cancellable operating leases are as follows: Group ChArity 2024 2023 2024 2023 Within one year Between one and five Ye'S 147.530 398.532 256,657 558,429 546,062 815,086 19 Pension and other scbemes The group operates a defined contribution pension scheme. The assets of the s¢heme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £53,748 (2023: £51,390). Conts'ibutions totalling £12.605 (2023: £10,871) were payable to the fund at the balance sheet date and are incLuded in other creditors. 20 ContRngent liabilities China Fleet Trust is in communication with HIRc regarding a routine VAT inspection following the raising of an assessment of a previous VAT rethrn. HMTiC have indicated that the inspection may be extended to consider later VAT rethrns submitted following the original assessment and that the assessment of these returns, conclusion and outcome of such inspections will not be completed prior to the accounts filing deadline. At this stage it is therefore impractical to detem)ine the outcome of such assessments or any financial implications. Page 37
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 21 Funds Group Other recognised gainsl(108ses) Balance at I June 2023 lucomiug resollr¢ Resource5 expended Balance At 31 May 2024 Transfers Unrestricted funds General General Fund5 22,404 6,720,661 (6,513,875) (229,190) Dignated Designated Funds Freehold Property Reserve 942,797 7,492,775 29,809 (99,117) 328,307 71,238 944,727 7,573,015 8,517,742 (248,067) 248,067 8,435,572 29,809 229,190 71,238 Total unrestrieted funds 8,457,976 6,750,470 6,761,942 71,238 8,517,742 Restricted funds LIBOR Grant- Capital RNRMC Grant- Capital 31,496 292,016 (3,048) (9,271) 28,448 282,745 Total restricted funds 323,512 (12,319) 311,193 Totsl funiL8 8,781,488 6,750,470 (6,774,261) 71,238 8,828,935 Page 38
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 Other recognised g21DsI(losses) Balance at I June 2022 Incoming ro50urces Resources expended Balance at 31 May 2023 Transfers Unrestricted funds General General Funds 120,000 6,322,935 (6,328,441) (92,090) 22,404 Designaled Designated Funds Freehold Property Reserve 955,735 7,595.632 27,583 4.276 87,814 92,090 (44,797) 942,797 7,492,775 8,435,572 190,671) (190,671) 8,551,367 27,583 44,797) Total unrestricted funds 8,671,367 6,350,518 (6,519,112 (44,797) 8,457,976 Restricted funds LtBOR GTant- Capital RNRMC Grant- Capital 34,544 301,287 (3,048) 9,271 31.496 292,016 Totsl restricted fllnds 335,831 12,3 l9) 323,512 Total funds 9,007,198 6.350,518 (6,531,431) 44,797) 8,781,488 The above find note for the period 31 May 2023 includes prior year errors that have resulted in a restatement of the brought forward results reducing the Freehold Property Reserve by £226.423 and subsequently has also resulted in an incTe&se to the resources expended in the year ending 3 1 May 2023 of £37,078 as noted on page 25 giving a total reduction to the carried forward reserves of £263,501. Page 39
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 Charity Other recognised g2inslOosse5) Balance at I June 2023 Incoming rcsources Resources expended Balance at 31 May 2024 Transfers Unrestricted funds General General Funds 1,823,723 (1.616,937) (206,786) Designated Designated Funds Freehold Property Reserve 942,797 7.478,816 8,421,613 29,809 (98,117) 304,903 71.238 945,727 7,535.652 248,067) (248,067) 29,809 206,786 71,238 8,481,379 Total unrestricted funds 8,421,613 1,853,532 (1,865,004 71,238 8,481,379 Restricted funds LIBOR Grant- Capital RNRMC Grant- Capital 31,496 292,016 (3,048) (9,271) 28,448 282,745 Totsl réstricted funds 323,512 (12,319) 311,193 Total funds 8,745,125 1,853.532 (1.877,323) 71.238 8,792,572 Page 40
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 Illay 2024 Other reeognised gains/(losses) Balance at I June 2022 Incoming roUrceS Resources expended Balance at 31 May 2023 Transfer5 Unrestricted funds General General Funds 83,637 1,439,444 (1,444,950) (78,131) Designatsd Designated Funds Freehold Propety Reserve 955,735 7,595,632 8,551,367 27,583 4,276 73,855 (44,797) 942,797 7,478,816 (190,671) 190,671 27,583 78,131 44,797 8,421,613 Total unrestricted funds 8,635,004 1,467,027 1,635,621) (44,797) 8,421,613 Restricted fund5 LIBOR Grant - Capital RNRMC GraTht- Capital 34,544 301287 (3,048) 9,271 31,496 292,016 Totsl restrieted funds 335,831 (12,319) 323,512 Total funds 8,970,835 1,467,027 1,647,940) (44,797) 8,745,125 The above fjjnd note for the period 31 May 2023 includes prior year eTrors that have resulted in a restatement of the brouglit forward results reducing the Freehold Property Reserve.b"y. £226,423 and subsequently has also resulted in an increase to"th"e Tesources expended in the year ending 31 May 2023 of £37.078 as noted on page 25 giving a total reduction to the carried forward reserves of £263,501. Page 41
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 The specific purposes for which the funds are to be applied ate as follows: Designated Funds - represents funds allocated for the replacemenL long tern] maintenance and improvements of buildinos and equipment in line with the reserves policy. Freehold Property Reserve - represents the net book value of the freehold property (excludinE amounts held in restricted funds) less loans secui'ed agatnst the asset. Restricted Funds represents LIBOR and RNRMC grant income that has been used in the refibIS11rnent of apartment blocks and refurbishment of changing rooms. The balance equals the net book value of the assets purchased. 22 Analysis of net assets between funds Group Unrestricted funds General Total funds at 31 MAY 2024 Restricted funds Tangible fjxed assets Fixed asset investments Cutrent assets Current liabilities Creditors over l year 8,558,824 944,727 994,513 (1,510,624) (469,697 311,192 8,870,016 944,727 994,513 (1,510,624) 469,69 Total net assets 8,517,743 311,192 8,828,935 Unrestricted funds GenerAI Total funds at 31 May 2023 Restricted funds Tarlgible fixed assets Fixed asset investments Current assets Current liabilities Creditors over l year 8,355,536 942,797 1,181,158 (1,413,217) (608,298) 8,457,976 323,512 8,679,048 942,797 1,181,158 (1,413.217) (608.298) Total net assets 323.512 8,78l,488 Page 42
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 Charity Unro8tricted funds General Total funds at 31 May 2024 Restricted funds Tangible red assets Fixed asset investrnents Current assets Current liabilities Creditors over l year .546.703 945,727 662,972 (1,246,064) (427,958) 311.192 8,857,895 945.727 662,972 (1,246.064) (427,958) Total net'assets 8,481,380 311,192 8,792,572 Unrestricted funds General Total funds at 31 MAY 2023 Restricted funds Tangible fixed assets Fixed asset investments Cuffent assets Current liabilities Creditors over l year Total net assets 8J37,820 943,797 . 669,438 (1,092,859) 436,583 323,512 ,661,332 943,797 669,438 (1,092,859) (436,583) 8,421,613 323,512 8,745,125 23 Analysis of net thnds Group Financing cash flows At31 May 2024 At l June 2023 Cash at bank atld in hand Debt due within one year Debt due afteT more than one year . 846,215 (160,159) (608,298) 77,758 (L64,483) 19,244 138,601 681,732 (140,915) (469.6971 Net debt (6,638) 71,120 Finaneing e2sh. flows At 31 May 2023 At l June 2022 Cash at bank and in hand Debt due within one year Debt due after more than one year 1.113,679 (158.129) 646.458 (267,464). (2,030).. 38,160 846215 (160.159) (608.298 Net debt 309,092 (231,334 77.758 Page 43
China Fleet Trust Notes to the Financial Statements for the Year Ended 31 May 2024 24 Related party trans2Ctlons The Cliarity lias one l OOD/o owned subsidiary as detailed in note 12. As this subsidiary is wholly owned by China Fleet Trus¢ the Charity ha8 taken advantage of the exemption ontained in FRS 102 Se¢tion 33.IA not to disclose transactions or balances with entities which forni part of a group. Page 44