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2022-09-30-accounts

Charity registration number 1140497

Company registration number 07455580 (England and Wales)

MARITIME ARCHAEOLOGY SEA TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

MARITIME ARCHAEOLOGY SEA TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J M Jefferson
A K Dymock
P A J Cordingley
E Bussey-Jones
P C Goodship
Charity number 1140497
Company number 07455580
Registered office 22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
Independent examiner Harwood Hutton Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB

MARITIME ARCHAEOLOGY SEA TRUST

CONTENTS

Page
Independent examiner's report 4
Balance sheet 6
Notes to the financial statements 7 - 14

MARITIME ARCHAEOLOGY SEA TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2022

The trustees present their annual report and financial statements for the year ended 30 September 2022.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The objectives of the charitable company as set out in the governing document are:

To advance the education on the public in the maritime heritage, focusing in particular (but without limitation) on maritime archaeological material, by such means as the directors in their discretion shall from time to time think fit including:

In setting the objectives and planning the activity of the charitable company, the trustees have given careful consideration to the Charity Commission's general guidance on public benefit.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

We believe that to protect our nation's future we must understand our past. We believe that this country's rich maritime heritage can provide a critical insight to our history, through the underwater archaeology resulting from thousands of years of trade, wars and alliances.

We believe that we have a chance to preserve our future, but only together with the help of the people who are forging it, by evaluating and recording our underwater archaeology.

Below are the key highlights.

The Invincible Project: The exhibition is now in the NMRN’s museum in Hartlepool, the third location on HMS Invincible’s tour of the UK.

The Maritime Observatory: We continued working with OceanMind, a not-for-profit organisation which specialises in the monitoring of illegal, unreported and unregulated fishing for governments and the private sector, to harness the growing capabilities of the space sector to better protect important maritime sites from unauthorised salvage.

This Maritime Observatory function has been proven nationally and we are now working with European and British partners, concentrating in 2022 in the Netherlands and also off the coast of Sicily, this latter funded by the Honor Frost Foundation. The Observatory is also working with Historic England to establish any patterns of looting off our shores.

The Observatory establishes a cross-sector team with strong government input that creates a hub for monitoring the maritime domain and sharing intelligence with relevant stakeholders to protect important maritime sites. Observatory work in the South China Sea also highlighted internationally the flagrant looting of naval war graves from World War Two by a Chinese salvage barge, in particular of HMS Prince of Wales.

New technology for finding and exploiting wrecks has allowed increased unauthorised salvage activity in the high seas beyond territorial waters where criminals exploit the limited jurisdiction and absence of enforcement. There is a huge disparity between the protection afforded to military remains ashore and those on the seabed which has enabled WWI and WWII wrecks to be ravaged. The Observatory is combining OceanMind’s satellite surveillance with specialist intelligence to enable much more effective monitoring of known wreck sites and the tracking of bad actors.

MARITIME ARCHAEOLOGY SEA TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

It aims to help detect and thus deter unauthorised recoveries from wrecks, both historic and modern – eg. merchant ships carrying valuable cargos, ancient wrecks, warships which may contain human remains, and sites at risk due to their pollution potential (oil and ordnance). Although the Observatory has identified that most looting targets recent metal wrecks, no wreck is immune from interference. MAST is currently focused on improving the protection of military wrecks because the ownership is usually clear and their possible status as naval war graves raises public concern, but similar principles apply to merchant shipwreck preservation - a much larger challenge but one that will increase in importance as steel corrodes and pollution occurs. This criminality is not limited to the maritime domain and often enmeshes wider illegal activities.

British Antarctic Territory: Earlier in 2022 we completed a second report for the Foreign, Commonwealth and Development Office (FCDO) for the British Antarctic Territory (BAT), a review of significant UCH sites in the BAT and across the Southern Ocean.

We are delighted by the discovery of Shackleton’s Endeavour in March 2022, and equally pleased by our timely work, with Bournemouth and Plymouth Universities, to protect the site through our Headline Strategy completed for the Foreign and commonwealth Office. We are encouraged by assurances from the Falklands Maritime Heritage Trust in a letter to The Times in November that there are no plans to attempt to raise the wreck, that they are working with Canadian partners to develop cutting-edge imaging of the site for all the world to see.

Advocacy : MAST continues to provide advice to British Government departments, including the FCDO and MoD. It continues to contribute to policy-building and is working to ensure with international partners such as UNESCO, along with national partners that the marine environment and maritime cultural heritage are seen as symbiotic and are considered holistically. This is crucial with the extension of offshore energy generation development and the likely discoveries of new UCH.

Financial review

During the year the trust's unrestricted funds show a surplus of £3,510 (2021: a deficit of £43,920) and the restricted funds show a surplus of £833 (2021 £nil) with the overall result for the year being a surplus of £4,343 (2021: a deficit of £43,920) leaving the charity with funds of £20,141 (2021: £15,798) at the year-end.

The trustees have appointed a fund raiser to help raise funds for the charity and have a reasonable expectation that the charity will be able to raise additional unrestricted funds. The Trustees are committed to supporting the charity and believe that its is able to continue to operate with continued support from its subsidiary.

Structure, governance and management

The charity is a company limited by guarantee, constituted under a Trust Deed dated 18 February 2011 and a registered charity number 1140497.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

J M Jefferson A K Dymock P A J Cordingley P J Fleming (Resigned 6 June 2023) E Bussey-Jones P C Goodship

MARITIME ARCHAEOLOGY SEA TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

Trustees' Responsibilities

The trustees, who are also the directors of Maritime Archaeology Sea Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees' report was approved by the Board of Trustees.

J M Jefferson

Trustee

27 June 2023

MARITIME ARCHAEOLOGY SEA TRUST

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF MARITIME ARCHAEOLOGY SEA TRUST

I report to the trustees on my examination of the financial statements of Maritime Archaeology Sea Trust (the charity) for the year ended 30 September 2022.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

The firm, Harwood Hutton Limited, provides bookkeeping services to the charity. The firm and I remain independent as we have applied the principles of the FRC Ethical Standards to this assignment.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and 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 financial statements to be reached.

Keir Singleton Harwood Hutton Limited

22 Wycombe End Beaconsfield Buckinghamshire HP9 1NB

Dated: 27 June 2023

MARITIME ARCHAEOLOGY SEA TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and legacies
2
94,257
166,375
Charitable activities
3
8,682
5,000
Investments
4
1
-
Total income
102,940
171,375
Expenditure on:
Raising funds
5
24,320
-
Charitable activities
6
75,110
170,542
Total expenditure
99,430
170,542
Net income/(expenditure) for
the year/
Net movement in funds
3,510
833
Fund balances at 1 October
2021
15,798
-
Fund balances at 30
September 2022
19,308
833
Total Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
260,632
60,169
358,097
13,682
4,900
-
1
-
-
274,315
65,069
358,097
24,320
24,000
-
245,652
84,989
358,097
269,972
108,989
358,097
4,343
(43,920)
-
15,798
59,718
-
20,141
15,798
-
Total
2021
£
418,266
4,900
-
423,166
24,000
443,086
467,086
(43,920)
59,718
15,798

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

MARITIME ARCHAEOLOGY SEA TRUST

BALANCE SHEET

AS AT 30 SEPTEMBER 2022

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current liabilities
Total assets less current liabilities
Income funds
Restricted funds
14
Unrestricted funds
2022
£
46,106
39,471
85,577
(88,629)
2021
£
£
23,193
41,275
244,744
286,019
(299,456)
(3,052)
20,141
833
19,308
20,141
£
29,235
(13,437)
15,798
-
15,798
15,798

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2022.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The Directors/Trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 27 June 2023

J M Jefferson Trustee

Company registration number 07455580

MARITIME ARCHAEOLOGY SEA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

1 Accounting policies

Charity information

Maritime Archaeology Sea Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 22 Wycombe End, Beaconsfield, Buckinghamshire, HP9 1NB.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.3 Incoming resources

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Grants receivable are recognised when the expenditure relating to the terms of the grant are incurred. The remaining balance of the grant is carried forward for expenditure in future years and shown within deferred income.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes

1.4 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

MARITIME ARCHAEOLOGY SEA TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

1 Accounting policies

(Continued)

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered and is reported as part of the expenditure to which it relates.

1.5 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment 25% reducing balance Computers 20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.6 Financial instruments

The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” to all of its financial instruments.

Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

1.7 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.8 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

MARITIME ARCHAEOLOGY SEA TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

2 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
70,074
-
Government Grants
24,183
166,375
94,257
166,375
Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
70,074
60,169
-
190,558
-
358,097
260,632
60,169
358,097
Total
2021
£
60,169
358,097
418,266

3 Charitable activities

**Unresticted ** Unresticted
2022 2021
£ £
Sales within charitable activities 8,682 4,900
Grants 5,000 -
13,682 4,900
Analysis by fund
Unrestricted funds 8,682 4,900
Restricted funds 5,000 -
13,682 4,900

4 Investments

Unrestricted Total
funds
2022 2021
£ £
Bank interest recieved 1 -

MARITIME ARCHAEOLOGY SEA TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

5 Raising funds

6 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Fundraising and publicity
Support costs
24,320
24,000
24,320
24,000
Charitable activities
LIBOR
LIBOR
2022
2021
£
£
Staff costs
33,667
33,052
Depreciation and impairment
6,041
6,131
Insurance
8,399
7,976
Repairs and maintenance
2,239
3,223
Research
159,033
319,688
Printing and stationary
2,210
838
Computer running costs
804
940
Motor running expenses
2,552
1,701
Travelling expenses
1,143
510
Accountancy
4,052
8,650
Bank charges
432
456
Sundry expenses
636
1,093
Professional subscriptions
14,182
13,446
Rent and rates
5,421
35,265
Advertising
529
1,245
Other charitable expenditure
4,312
-
245,652
434,214
Grant funding of activities (see note 7)
-
8,872
245,652
443,086
Analysis by fund
Unrestricted funds
75,110
84,989
Restricted funds
170,542
358,097
245,652
443,086
Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Fundraising and publicity
Support costs
24,320
24,000
24,320
24,000
Charitable activities
LIBOR
LIBOR
2022
2021
£
£
Staff costs
33,667
33,052
Depreciation and impairment
6,041
6,131
Insurance
8,399
7,976
Repairs and maintenance
2,239
3,223
Research
159,033
319,688
Printing and stationary
2,210
838
Computer running costs
804
940
Motor running expenses
2,552
1,701
Travelling expenses
1,143
510
Accountancy
4,052
8,650
Bank charges
432
456
Sundry expenses
636
1,093
Professional subscriptions
14,182
13,446
Rent and rates
5,421
35,265
Advertising
529
1,245
Other charitable expenditure
4,312
-
245,652
434,214
Grant funding of activities (see note 7)
-
8,872
245,652
443,086
Analysis by fund
Unrestricted funds
75,110
84,989
Restricted funds
170,542
358,097
245,652
443,086
24,000
LIBOR
2021
£
33,052
6,131
7,976
3,223
319,688
838
940
1,701
510
8,650
456
1,093
13,446
35,265
1,245
-
434,214
8,872
443,086
84,989
358,097
443,086

MARITIME ARCHAEOLOGY SEA TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

7 Grants payable

Grants to individuals LIBOR
2022
£
-
-
LIBOR
2021
£
8,872
8,872

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (2021 - £nil).

9 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
1 1
Employment costs 2022 2021
£ £
Wages and salaries 32,879 32,308
Other pension costs 788 744
33,667 33,052

There were no employees whose annual remuneration was more than £60,000.

MARITIME ARCHAEOLOGY SEA TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

10
Tangible fixed assets
Plant and
equipment
Computers
£
£
Cost
At 1 October 2021
41,097
4,474
At 30 September 2022
41,097
4,474
Depreciation and impairment
At 1 October 2021
12,106
4,231
Depreciation charged in the year
5,798
243
At 30 September 2022
17,904
4,474
Carrying amount
At 30 September 2022
23,193
-
At 30 September 2021
28,992
243
11
Debtors
2022
Amounts falling due within one year:
£
Amounts owed by subsidiary undertakings
7,685
Other debtors
22,098
Prepayments and accrued income
16,323
46,106
12
Creditors: amounts falling due within one year
2022
Notes
£
Other taxation and social security
643
Government grants
13
-
Trade creditors
206
Other creditors
81,930
Accruals and deferred income
5,850
88,629
Total
£
45,571
45,571
16,337
6,041
22,378
23,193
29,235
2021
£
2,825
21,677
16,773
41,275
2021
£
556
190,558
2,069
95,973
10,300
299,456

MARITIME ARCHAEOLOGY SEA TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

13 Government grants

Deferred income is included in the financial statements as follows:

2022 2021
£ £
Deferred income is included within:
Current liabilities - 190,558
Movements in the year:
Deferred income at 1 October 2021 190,558 548,655
Released from previous periods (190,558) (358,097)
Deferred income at 30 September 2022 - 190,558

Deferred income relates to funds for which the performance-related conditions have not been achieved, in that expenditure has not yet been incurred.

14 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement Movement in funds Movement in funds
in funds
Incoming
Balance at
Incoming Resources Balance at
resources 1 October 2021 resources expended 30 September
2022
£ £ £ £ £
LIBOR grant - - 166,375 (166,375) -
HMS Invincible's swivel guns - - 5,000 (4,167) 833
- - 171,375 (170,542) 833

The purpose of the LIBOR grant is to fund the rescue excavation, recovery, conservation and public display material from the wreck of HMS Invincible.

The purpose of the HMS Invincible's swivel guns fund is to fund the conservation of the swivel guns from the wreck of HMS Invincible.

MARITIME ARCHAEOLOGY SEA TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

15 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 30
September 2022 are
represented by:
Tangible assets
23,193
-
Current assets
84,744
833
Current liabilities
(88,629)
-
19,308
833
Total
Unrestricted
funds
Restricted
funds
Total
2022
2021
2021
2021
£
£
£
£
23,193
29,235
-
29,235
85,577
286,019
190,558
476,577
(88,629)
(299,456)
(190,558)
(490,014)
20,141
15,798
-
15,798

16 Related party transactions

There were no disclosable related party transactions during the year (2021- Nil).