Charity number: 1147573 The HM5 Victory Preservation Endowment Fund Trustees, report and financlal statements for the year ended 31 March 2024
HM5 Victory Pre5eTvatlon Endowmerrt Fund Charity number: 1147573 Contents Legal and administrative information................. . Trustees, annual report.......................-.........-....-....-.-.-........ Foreword.........................................................-...-...-...... Objectives and actNf(ies........................-..-.-..-...-...-.-.................. ..... Structure, govemance and management..............................................-...-.........-............. .. Risk Management...................-...-..................-................-.-...-...-.-......-.-.....-.. ... Activities and Achievements..............................................................-.-...-.......................... Plans for Future Periods..............................................................................................-.-..-.....-...-....-.-..-............ Investment Pollcy.............................................................................................................................................. Reserves Policy.. Grant Making Policies....................................................................................................................................... Related Parties.................................................................................................................................................. Financial Review. Auditors......-...........................................-........-..-...-....-............... Statement of Trustees, responsibilities.....- . Independent auditors. reF)Ort to the Trustees of HMS Wirtory Preservation Endovmient Fund .. ........ ...........10 Statement of financial activitie5..-.......-..............................-......-.-.-....-.-.-......-...-....-.....-......-.....-....-.-....-.-......-...13 Balance sheet.....-............-. ...... .14 Cash flow statement.............................................................................................. .15 Notes to the financial statements..........................................-...-........-......-.-.-..-.-.-..-.............................. -16
HMS Vjctory Preservatlon Endowment Fund Charity number: 1147573 Legal and administrative informatlon Charity number 1147573 Business address HM Naval Base IPP661 PortsmoLrth Hampshire P013 3NH Trustees Mr Keith W Morri5 Mrjohn D Dagg Mr Robert M N Nomian Mr Keith Scott Accountants Compass Accounfdnts Venture House. The Tannerie5. East Street, Trtchfield Hampshire P0144AR Auditors pri Bailey LLP 24 Old Bond Street, London. WIS 4AP Bankers Schroder & Co Limited Va Cazenove Capitsl l London Wall Place, London. EC2Y SAU
HMS Vlctory PreseThation Endowment Fund Char5ty numbèr: 1147573 Trustees, annual report Foreword The Trustees of HMS Wictory Preservation Endowment Fund 1.the chariv'l present their report and the financial statements for the year ended 31 March 2024. The Trustees have had due regard to the guidance issued by the Charity Commission on Public Benefrt. The Trustees have adopted the provisions of the Statement of Recommended Prattice ISORPI "Accounting and Reporting by Charlties" IFRS 1021 in preparing the annual report and financial statements of the charity. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charivs Boverning document. applicable law and Untted Kingdom Accounting Standards (Untted Kingdom Generally Apted Accounting Prartice). Objertives and activities The charity is governed by the Declaration of Trust dated 26 March 2012. The chartty was establlshed as an independent charitable trust to manage £25 million received from the Ministry of Defence into an endowment fund, for the purposes of supportin8 the HMS Wictory Preservation Company (company number 7935358 and gIStered charity number 11463761 in pursuance of their charitsble objects, which are: al To preseNe, restore and maintain HMS Wirtory. the flagship of Lord Nelson at the Battle of Trafalgar: bl To educate the public about the history of HMS Wirtory and the history of the Royal Naw¥ and other matters relating to the defence of the realm. cl To promote the efficiency of the armed forces by assisting recruitment and retention and f05terin8 the esprit de corps of the men and women who are serving in the Naval Service or Auxiliaries: and dl To commemorate and remember those members of the Naval Service and Auxiliaries who have died while on active seNice and to encourage public recognition of the sacrifice made by such persons. The Declaration of Trust imp05es no restrittion on the charity to prohibit the Trustees from spending the entire capital of the endowment in furtherance of the objectNes of the charity- The Trustees anticipate, subject to receiving acceptsble grdnt requests. that the endowment will be fully expended by the 2027-28 financial year. Structure. governance and management On 29 March 2012. the ownership of HMS Virtory 1.the Ship") transferred to the HMS Wictory Preservation Trust, a registered charitable trust of the HMS Wirtory Preservation Company 1.the companWI, a wholly owned subsidiary of the National Museum of the Royal Na Icompany number 6699696 and reBistered charity number 11262831- The companvs trustees have concluded that they do rtot have the expertise or infrastructure to presee. restore and maintain the Ship or to present it to the public as a visitor attraction. Accordingly. the company has come to an agreement with the charitable entity, NMRN Operations Icompany number 9988314 and charity number 11690611. also a wholly owned subsidiary of the National Museum, that it will restore and maintain the Ship and present it as a visttor attraction to the public as part of its charitable actNttles. The trustees note that a sister fund, managed by the HMS Victory Preservation Company, shares identical objective5 and holds significant re50urce5. Thi5 Company has indicated its intention to continue supporting the restoration of HMS Virtory after the endowment IS spent. The Trustees meet regulady. nomaliy four times a year and more as required, to review and consider performance of invested funds with the appointed fund managers and to consider requests for grant funding from NMRN Operations. The Trustee5 regularly review any potential conflicts of interest. Page 4
HM5 Wctory Preservatlon Endowment Fund Charity number: 1147573 A formal induction process for Trustees is in pla which combines all the necessary background reading material including items such as the goverfting document, minute5 of recent meetings. the Charity Commission's publication Yhe Essential Trustee: what you need to kno. and the Museum Association's publication "Code of Ethics for Trustee<. Trustees are encoura8ed to visit HMS Wictory and the National Museum of the Royal Naws Head Office in Portsmouth. to meet key member5 of staff and to discuss current issue5. Rlsk Management The Trustees have considered and reviewed the rrsks to the charity and have established srystems and procedures to manage them. The principal risk to the Endowment Fund's amount available to make grants. lies in the volatility of investments in equities. Sale of these in a depressed market would lead to less monies being available to the trustees to distribute. This risk is managed by reducing the percentage of equities held and increasing the cash and fixed interest portfolio as the fund reduces in size. In addition the Trustees only approve grants where the fijnd hold5 cash sufficient to meet the amount granted. This process 15 managed through a clearly defined investment policy. the selection of an invesiment manager that is fully briefed on that policy,. and regular reviews of investment manager performance to confimi that the assets are in line with the policy. Artivities and Achlevements We have made grants to NMRN Operations to fvnd Vrk on HMS Wictory totalling £1.107,567 during this finandal year. The HM5 Victory PreseNation Company has resolved that the conservation of the ship will be approached in accordance wf(h those principles set out in the National Historic Ships UK publication "Conserving Historic Ve55els". In May 2015, the Company approved the Conservation Progromme Plan for the Ship, developed by NMRN Operations in association with subjett matter experts. Its purpose is to define what conservation work is required to deliver a fully conserved HMS Wittory. in an open environment and in a condition to survive for 50 years. wtthout major work beyond a programme of planned maintenance. We have funded the development of a revised Conservation Management Plan. with support and challenge from the Victory Technical Committee. to ensure it is fvture proofed and supports the planned programme. The plan will enable a conslstent approach for all who work on the Ship. NMRN Operations has continued to conntrate on hull planking removal. that ha5 come with a number of challenges due to degradation of on-ship materials, and the standard of frames being exposed. This has resulted in a revised project baseline which was fvrther imparted by the cost of materials significantly increasing due to inflationary rises. A programme of sey$ and testing, mandated by legislation, was completed alongside the commencement of fungicidal treatment and graved repairs to the Ship's frame on the Starboard side. Produrtion of replacement futtocks had also started. Work was undertaken by NMRN Operations, under the guidance of its Structural support Specialists. to prevent movement of the Ship in its structure during this process. The year also Saw the final consolidating of the Ship'5 rig and smaller Spars that were removed in 2011. They are now in one location where they will be catalogued. and their condition assessed to inform planning for the re-rig. We funded NMRN Operation5 to continue testing to establish the impart of uv, water permeability and various materials for fastenings on the Ship. This extensNe programme of vrk. undertaken in partnership with Southampton UnNers1S nd consultancy. is enabling the project to better understand the likely degradation of materials over time, and make informed decisions as to the best choices of fixings, glues, paints and timber to be used on the project, and the levels of maintenance likew to be required going Page 5
HM5 Vlctory Pre5ervatlon Endowment Fund Charlty number.. 1147573 forward. The ship5ide mock-up surveys progressed on a monthly basis and the results showed pattern5 of deterioration. This information. combined with the laboratory results from materials trials was used when selecting the materials for re-planking the ship. The approach to the fungal suNey which has been outlined with the Universitys microbiology department is due to commence inthe summer 2024. The Deathwatch beetle colony that was sent to London Zoo for testing reported positive signs that there is larvae in the Ship's timber and this will enable further testing and management going forward. To sUPPOrt the delivery of the 12-year conservation plan. we funded upgrades to the workshops. The Bay 4 racking construction was completed to support the new space for critical qualtty control procedures for the production of laminating oak and for the smooth supply thain flow from the timber supplier. We have enabled NMRN Operdtions to capture digital footage of the project during the year. including 3D drone surveys, modelling and high resolution footage of plank5. All of the content has been used to support visitors, research and experien5 across websites. social media and within the Victory Lrve experience. This has enabled digital and site visitors to experience the levels of conservation being undertaken. receNe key updates, witness the restoration milestones and learn more about the science. We have also funded the preparation and implementation of a strategy for recording the work packages dealing with the starboard futtock repairs. Such strategies included photographs and laser scan5 a5 work progressed and will be used as an archaeological archive for future researchers and custodians of the Ship. With support from our funding, NMRN Operations welcomed 282.056 vi5itots12022-23: 204,859 visitors) to HMS Victory (Ship and Gallery) during the period. There were approximately 12.149 school visits to the Ship and Gallery. A'virtual, Session on board HMSVictory was delwered as part of a 'Kids in Museum conference. A'minecraff programming strand, delivered by NMRN Operdtions in partnership with their scaffold contractors, was nominated for the Construction News Specialist Awards in the 'EXllenCe in Social Value, category and continues to be held on site when large numbers of families vislt. During September 2023. HMS Wirtory was part of the National Museum's Herrtage Open Days offering visitors the chance to meet shipwrights and riggers. wtth the opportuntty to take a 'Beetles on Board, tour. A joint initiative between NMRN Operations. Portsmolrth City Council and the Mary Rose Trust, offered free tickets to all frdmilies within the city who are entitled to Pupil Premium. opening up HMS Victory to those who may not have been able to visit the Ship previously. HMSVictory is a key focusfor rernembrdnce of those membersofthe Royal Navy who have died while on active service. The Victory Gallery marks remembrdnce activities on the Ship by tellinE the story of Queen Victoria placing a wreath on the spot where Nelson fell on Trafalgar Day, 21 October. The laying of a wreath to mark Trafrdlgar Day as an act of remembrance continues to be an exceptionally important day in HMS Virtorfs calendar. Plans for Future Perlods The Endowment Fund expectsto receive and considerfvrthergrant requests from NMRN Operation5 in the 2024-25 financial year, and subsequent financial years. for funding to support the HMS Victory Conservation Project Plan. Significant changes were made to the project plan during 2022 that accelerate certain project activities to enable work to be completed more quickly and to the same quality. but that will result in increased expenditure in the early years, although significantly lower total expenditure in aggregate over the life of the project. This increased rate of expenditure has had a significant impart on the Trustees, view of the anticipated life of the Fund. Pase6
HMS Vlctory Preservation Endowmènt Fund Charity number: 1147573 Investment Pollcy The Trustee5 completed a review of the Investment Policy and Investment Managers at their meeting of 10 December 2021. which resulted in the Trustees resolving to hold all fund5 With one investment manager, Cazenove. They took into account the anticipated grant funding requests for the revised Conservation ProJect Plan. which indicated a high level of grant requests in the 2023-24 financial year. The current investment objective is to maintain the cash and liquidity available to meet anticipated near- term grant funding requests (defined as the next 12 months) and to invest the remalning assets in a way consistent with the experted projert timeframe. The forecast of expenditure of NMRN Operations at the date of approving this investment policy showed that the capital resources of the Endowment Fund will have been fully expended by the 2026-27 financial year. Any forecast should be treated with some caution. given the complexities of the Conservation Programme Plan and the impact of the current economic environment on both the work programme and investment perfomiance. The latest projections indicate that at the anticipated level of future grant makin& taking into account anticipated fijture investment returns. the Endowment Fund will now be fully expended during the first half of the 2027-28 financial year. The trustees considered our Investment Objectives and did not consider any change in approach was required. The Endowment Fund seeks to produce the best possible financial return wtthin an acceptable level of rlsk. Return can be achieved by either income or capital gain, but given the duration of the fund, significant volatility in the investment portfolio is undesirable. The Endowrnent Fund will seek to strike a balance between equity investments, which provide the best opportunity for capital retention and gr0h in excess of inflation, and fixed investments such as cash and bond5, which provide lower volatility and more rtain returns. The trustees have determined they have a conseNatNe approach to risk Subject to the above, the Endowment Fund assets can be invested widely and are expected to be diversified by asset class. by manager, and by security. Asset classes can include cash, bonds. equitie5. property fvnds, hedge funds, structured assets. private equity, commodities and any other asset class that is deemed sultable. The Trustees do not wish to invest direct in property- In making investments, the Trustee5 rnay take into considerdtion the fact that the Preservation Company fund, which shares the identical objectives. will not be using its capital and will be available to take up the funding needs of HMS Victory after the Endowment Fund is expended. The Trustees will agree a suitable asset allocation framework with the chosen Investment Managers The base currency of the investment portfolio is Sterling. Investments may be made in non-sterling assets. Hedging 15 permitted. The Endowfftent Fund shall, through the chosen Investment Managers, maintain a trd5h reserve to fund near- term requirements forfunding the programme of work on HMS Wirtory. The Investment Managers manage the Endowment Fund's assets on a discretionary basis in line with this policy. The Investment Managers provide custody of assets and each is required to produ a quarterly ValUatn and perf0mlan report. The Trustees are reSnsible for agreeing strategy and monitoring the investment assets, and the performance of the Investment Managers and will meet at least annually to review the portfolios, including an analy515 of return. a55et allocation and risk. This will include monitoring and reviewing the fees charged. No specific ethical investment restriction is placed in the Investment Managers, remit. The trustees are content that the corporate socialty responsible investment policies of the Investment Managers meets their needs.
HMS Victory Preseriatlon End0ent Fund Charity number: 1147573 Reserve5 Policy The Trustees regularly monitor the levels of the Endowment Fund's liquid and total reserves. Due to the expected higher grant requests in the coming year. the Trustees needed to hold additional liquidity. On advice from their Investment Manager the Trustees opened a short temi liquidity fund to maintain easily accessible asset5 sufficient to meet anticipated Erant requests in the next twelve months. and to avoid selling of investments assets at a sub~optimum time in a potentialty declining market. This accounts for the majority of the decline in Endowment Funds, and increase in Unrestricted Income Funds. shown in the accounts. Grant Maklng Polldes The Endowment Fund exists to support the charitsble objects of the HMS Wittory Preservation Company. In so doingi the Endowment Fund expects to make a Erant to NMRN Operations based on the budget proposed for preservation, maintenance and operation of the Ship. In addition, occasional grants may be made to fund specific projects and one-off expenditure that support the charitable objects. The Endowment Fund received and made grant funding requests totalling £1,107,567 for the preservation, maintenance and operation of HMS Victory in the year to 31 March 2024. Related Parties The related partles of the HMS Vlctory Preservation Endowment Fund are disclosed in note 13 to the accounts. Financial Review Results for the Year Ended 31 March 2024 The trustees were pleased to be able to report that after making grants totalling £1,107,567 they are still able to report a decline in net assets of only £79.051. This wa5 due to a very satisfartory investment return during the year as set out below. Total income from investments for the HMS Victory Preservation Endowment Fund in 2023-24 amounted to £413,188 {2022-23.. £287,081). Total expenditure for 2023-24 amounted to £1,176.68312022-23: £8.178.1581- After net gains on mid- market valuation of investments of £684.44412022-23' losses of £464,428), the net movement in funds for the year wa5 a decrease of£79.05112022-23: decrease of £8.355.5051- The net assets as at 31 March 2024 amounted to £14,290.431131 March 2023: £14,369.4821. Chan es in Fixed Assets Movements in fixed asset investments are shown in note 7 to the accounts. Auditor5 The accounts have been audited by Pri Bailey LLP. So far as the Trustees are aware. there is no relevant audit information of which the charl5 audttors are unaware. Trustees have taken all the steps necessary to make themselves aware of any relevant audit information and to estsblish that the charivs auditors are aware of that information. Mr Keith Morris Date: -1 Ilwozr Page 8
HMS Ifirtory Preservation Endowment Fund Charity rtumbér: 1147573 Statement of Trustees. responsibilities The Trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance wtth applicable law and United Kingdom Accounting Starsdards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which gNe a tme and frdir view of the state of affai of the chartty and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements. the Trustees are required to: select suitable accounting policies and then apply them consistently: observe the method and principles of the Charities SORP 2019 IFRS 1021- make judgements and estimates that are reasonable and prudent: state whether applicable accounting stsndards have been followed, subject to any material departures disclosed and explained in the financial statements: and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping proper accounting record5 that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. the Charities IAccounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the chartty and hence for taking reasonable steps for the prevention and detection of fraud and other irregularrtie5. Mr Kelth Morrls Date: f Page9
HMS Vlctory Preservatlon Endowment Fund Charlty number: 1147573 Independent auditors, report to the Trustees of HMS Wictory Preservation Endowment Fund Opinion We have audited the finanaal statements of the HMSWirtory Preserwdtion Endowment Fund Ithe'charttyl for the year ended 31 March 2024 which comprise the Statement of Financial ArtNities, the Balance Sheet, the Cash Flow Statement and notes to the financial ststetnents, including a summary of Significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including FRS 102 The Finonciol Reporting Stondord applicoble in the UKond Republic of Ireland (Untted Kingdom Generally Accepted Accounting practi). In our opinion, the financial statemeDts= give a true and fair view of the 5tste of the CharlS affairs as at 31 March 2024 and of its incoming resources and application of resourtes, including tts income and expenditure. for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice: and have been prepared in accordan with the requirements of the Charttie5 Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI11SAs IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements sertion of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the FRCS Ethical Standard. and V have fulfilled our other ethical responsibilities in accordan with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusion5 relating to golng concern In auditing the financial statements, we have concluded that the trustees. use of the going concern basls of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that. individually or collectively, may cast signÈficant doubt on the Charivs ability to continue a5 a going concern for a period of at least twelve Tnonths from when the financial statements are authorised for issue. Our responsibilities and the re5pon5ibilities of the trustees wtth respect to going concern are described in the relevant sections of thi5 report. other inforniation The other information comprises the information included in the trustees. annual report, other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the trustees. annual report. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicttly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomatlon and, in doing so. consider whether the other infomiation is materially inconsistent with the financial Statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we Page io
HMS Vlctory Preservation Endowrnent Fund Charity number: 1147573 identify such material incon5iStencies or apparent material misstatements, V are required to detemiine whether thls gNes rise to a material mi5Statement in the financial statement5 themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matter5 on which we are required to report by exception We have nothing to report in respert of the following matters in relation to which the Charities (Accotjnts and Reports) Regulations 2(K)8 requlre us to report to you if, in our opinion: the inforrnation given in the financial statements is inconsistent in any material respect with the trustee< report: or sufficient accounting records have not been kept- or the financial 5tatement5 are not in agreement with the accounting e0rds. or we have not receNed all the infomiation and explanations we require for our audit. Responslbllltles of trustees As explained more fully in the Statement of Trustees Responsibilitie5. the tru5tee5 are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the trustees are responslble for assesslng the chariws ability to continue as a going concem, disclosin& as applicable. matters related to going concem and using the going concern basi5 Of accounting unles5 the trustee5 either intend to liquidate the chartty or to cease operations, or have no realistic afternative to do so. Auditorfs respon5ibilitie5 for the audit of the financial 5taternents Our objective5 are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditorfs 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 IUKI will always detert a matertal mi5Statement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are InStanS of non-complian with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detett material misstatements in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularitles, including fraud is detailed below= We obtalned an understanding of the Charity and the sector in which it operates to identify laws and regulation5 that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard throuEh discussions with management. sector research and appIltIon of cumulative audit knowledge and experience. We determined the principal laws and regulations relevant to the Chartty in this regard to be those arising from the Charities Act 2011, and the Charities SORP. The risks were discussed with the audit team and we remained alert to any Indications of non-compliance throughout the audit. We carried out specific procedu5 to address the risks identified. These included Palè 11
HMS Vlctory Preservation Endowment Fund Ch3rJty number: 1147573 reviewing minutes of Trustee Board meetings- agreeing the financial ststement disclosures to underlying supporting documentation: enquiring of mana8ement, including those charged wtth governance. To addre55 the risk of rnanagement override of contro15. we carried out testlng of journal entries and other adjustments for appropriateness. We also assessed management bias in relation to the accounting policies adopted and in detemiining significant accounting estimates. Because of the inherent limitations of an audit. there is a risk that we wlll not detect all irregularities. including those leading to a material misstatement in the financial statements or non-compliance wlth regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transartion5 reflected in the financial statements. as we will be less likely to becorne aware of instances of non-compliance. The risk is also greater regardin8 irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery. collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial 5tstements is located on the Financial Reporting Council's website at.. www.frc.o auditorsres onsibilities.This description forms part of our auditorfs report. Use of our report Thi5 report is made solely to the charitys trustees, as a body. in atcordance wrf(h Part 4 of the Chartties (Accounts and Reports) Regulations 2(X)8. Our audit work has been undertaken so that we might State to the charl5 tru5tee5 those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charivs trustees as a FKJdy. for our audit work, for thi5 report, or for the opinions we have fonned. Michael Cooper-Davls FCCA ACA (Senlor Ststutory Auditor) Price Bailey LLP Chartered Accountsnts Statutory Auditors 24 Old Bond Street London WIS4AP Date. 23 January 2025 Pa8e 12
HMS Victory Preservatlon Endowment Fund Charlty number: 1147573 Statement of financial activities Forthe year ended 31 March 2024 Unrestricted Endowmerrt funds funds 2024 Unre5trlrtèd Endowmènt Totsl funds funds 2023 Total Income from: Investments 406,624 6.564 413,188 283,317 3,764 287,081 Total Income 406,624 6,564 413,188 283,317 3,764 287,081 Expendlture on: Investment management C051S Charitable activities 1.831 1.141.412 35,271 1,141,412 4.212 8.124,977 48,969 53,181 8.124,977 Totsl expendlture 1,143,243 33,440 1,176.683 8.129,189 48,969 8,178,158 Net gainslllossesl on Investments 684.444 684.444 1464,4281 1464,4281 Transfer5 between fund5 2,142.990 12,142,990) 2,902 12,9021 Net movement in funds 1,406,371 11.485,4221 179.0511 17,842,970) 1512,535118.355,5051 Reconclllatlon of funds Total funds brought forward 3,579,857 10,789,625 14,369,482 IIA22,827 11,302,160 22,724,987 Totsl funds carried forward 4.986.228 9,304.203 14,290,431 3,579,857 10,789,625 14,369,482 The statement of financial actlvtties includes all gains and lossos In the year. All of the above amounts relate to continuin8 actNities. The notes on pages 16 to 21 forni an Integral part of these financl?I statemen1& Page 13
HMS Wiciory Preservation Endowment Fur Charity number: 1147573 Balance sheet as at 31 Marth 2024 2024 2023 Notes Fixed assets Investments 9,385.878 11,078,903 Current assets Investments Debtors 4.975.745 13,187 3.349,249 6,623 Total ojrrent assets 4.988.932 3.355.872 Creditor5: 3mount5 fallin8 due within one year 184,3791 165.2931 Net current assets 4,,553 3,290,579 Net assets 14,290,431 14,369,482 Funds io Endowment fund5 9.304.203 10,789,625 Ljnrestrirted incorne fiinds li 4.986.228 3.579,857 Totsl funds 14.290,431 14.369,482 The finan¢lal statements were approved by the Trustee5 and signed on their beham by Mr K Morris Trustee The notes on 16 to 21 form an Integral part ofthue finandal statementk Page 14
HMS Vlctory Preservation Endovmiènt nd Chartty number. 1147S73 Cash flow statement for the year ended 31 March 2024 2024 2023 Cashflows from operating activltles: Net cash {ouffiow)/lnflow from operating activitses 12.744,1621 1207,9)21 Cash fl(ws from investing artt¥itie5: Dlvldends and Interest from investments Purchase of investments Disp0531 of investments Movement in cash held in investments 413.188 1435,0201 2,578,010 187,984 287,081 1199,9141 Net cash provlded by (used In) investing actlvitles 2.744,162 88,713 Change In cash and cash equfvalents In the reportlng perlod 1119,1891 Cash and cash equivalents at l April 21r23 119,189 Total cash and cash equivalents * 31 March 2024 Nèt lexpenditurelfIncome for the year Income from investments Losse5 IIGaSnsl on investments Adjustment for non-cash fees from 8ain5llosse5 Decrease/llncreasel In short terni investments Ilncreasel/Deuease in debtors Increase/lDecreasel in cdItorS 179,0511 18,355,505) 1413,1881 1287,0811 1684,4441 464,428 46,495 48,062 11,626,496) 7,878,636 16,5641 13,7791 19.086 47,337 Net cash (used in)Iprovrded by operating activities 12,744.1621 1207.9021 PaÈe 15
HMS Wictory Preservation Endowment Fur CharSty number.. 1147573 Notes to the financlal statements forthe year ended 31 March 2024 Accountlng policies The prlnclpal accounting policies arè summarised below. The accountlng politiÈs have been applied consi51ently throughout the year and the preceding year. 1.1. Charity Information The HMS Victory Preservation Endowment Fund is a registered charity, number 1147573. The buslne5s address is HM Naval Base PP66. Portsmouth. Hampshire. POI 3NH. The HMS Ifictory Presetwation Endowment Fund meets the definition of a public beneffc entity under 5tion 34 of FRS 102. Assets and liabilities are initially reco8nised at historical cost or transaction value. unless Otherwise stated in the relevant accounting pollcy. The principal objecuves of the charity are detailed in the Trustees report. Ba515 of accounting The finandal statements have been prepared in accordance with Accounting and RepL>rting by Charittgs: Statement of Recommended practi applicable to charities preparing thelr accounts in accordance with the Financlal Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 i55ued in Ortobei 2019, the Flnancial Reporting Standard applicable in the UK and Republlc of Ireland IFRS 1021, the Charities Art 2011 and UK Generalty Accepted PracDce as It applies from l January 2019. The financial statements have been prepared on a going conrn basis as the trustees believe that no materlal uncertalntles exlst. The trustees have considered the level of funds held and the ÈxpÈrted lèvel of Income and expendlture for 12 months from authorising these financial ststements. The bud8ètÈd income and expenditure is sufflclent wlth the level of reserves for the charity to be able to continue a5 a goin8 concern. The financial statements are prepared under the hiswri¢al cost convention. modlfied to Include flxed asset Investments at fair value. The fInancial statements are presented in steTting whith is the functlonal currency of the tharity. Monetsry amounts In these finandal statements are rounded to the nearest £. Fund accounting Unrestrirted fund5 are donations and other incomine resources reived or generated for general purposes. Restrlcted funds are to be use(1 for specified purposes as laid down by the donor. Expenditure whith meets thls crlteria 55 identified to the fund, together with a fair allocation of overheads and support ¢osts. Endowment fund5 are fvnds whlch the donor has stated are to be held a5 Capital and expendable over the long term. Incomlng resources Incoffle is recognised when the charlty has entitlement to the fiJnd5, any perf0M)an conditlons attached to the iternlsl of income have been met. it is probable that the income wlll be received and the amount can be measured rellably. The following specific poSlaes are applled to partirular cateBories of Income: Voluntary Incorne Is reIved by way of grants. donations and glfts and Is induded in fijll In the ststement of financTal activities when re1Vable. Income from investments is induded in the year In which it is recelvable. Legacles are induded when the chaTwty 15 advised by the pèrsonal representative of an estate that payment wfll be made or property transferred and the amount involve(I can be quantiffied. Pa8e 16
HMS Vlctory Preservation Endowment Fund Charlty number: 1147573 Notes to the financlal ststements for the year ended 31 March 2024 Grants recelvable Revenue grants are credited to Incoming resources on the eartler date of when they are receTved or when they are recelvable. If a giant of donatlon Is subject to condtt(ons that require a level of performance before the charity bs entitled to the funds, the income deferred and not recogni5ed untll elther those conditions are fully met, or the fulfilment of those conditions is wholly within the charttws control and It Is probable those conditions wll be rnet in the accounting period. Grants for the purchase of fixed assets arè trÈdited to restricted incoming resources when re1Vable. Depreciation on the fixed assets purchased with such grants Is tharged against the restdcted fund. 1.6. Resources expended Expenditure is recognised on an accTuals basis a5 a liabilTty is incurred. Expertdlture Includes any VATwhich cannot be fully recovered, and Js reported as part of the expenditure to whith it relates. Charitsble expenditure comprises those costs incurred by the char5ty in the delivery of its activities and Servi5 for its benÈflciaries. It Includes both costs that can be allocated dirertly to such activitie5 and those Costs of an in(Jirect nature necessary to support them. Support costs are those costs incurred directly in support of expenditure on the objects of the charlty and include project management. Governance costs include those costs Ined in the g0veman of the chartty and rts ets and are prlmarilv associated with constitutional and statutory requiremerts. Investments Investments held as fixed and crrent assets are revalLtÈd at mid-rnaTket value at thè balance sheet date and the galn or loss taken to the statement of financtal actNtties. Investment incorne Unre5trirted Endowmerrt funds nds 2024 Unrestrirted Endrnent Totsl funds funds 2023 Total Income from UK Ilsted Investments 368.047 Interest income 38,577 374,611 38,577 266.ICKJ 17,217 3,764 269.864 17,217 406,624 6,564 413,188 283,317 3.764 287,081 Costs of charftsble actlvltles- by fund type Unrestricted funds 2024 Unrestricted Totsl funds 2023 Total HMS Wctory Preservatlon 1.141,412 1.141,412 8,124,977 8,124,977 Page 17
HMS Ifictory Preservation Endowment Fund Charity number: 11475TJ Note5 to the financlal staternent5 for the year ended 31 March 2024 Costs of charitsble activities- by activity Acuvltles undertaken directly Governance and sUPPOrt 5ts 2024 Totsl 2023 Total Governance and support Costs Grant to NMRN Operations (Charity I1661) Grant to the National Museum of the Royal Na (Charity 11262831 33.845 33,845 1.107.567 52,329 7.783,648 L107.567 289,000 1.107.567 33,845 1,141,412 8,124,977 Governance and support costs Unrestrlcted funds 2024 Unrestrlcted Total fund5 2023 Total Accountancy fees Auditor remuneration Administration and 5UPPOrt costs Bank charges Legal & professlonal lees Other Eovernance costs 1.203 10.082 17.040 1.203 10.082 17.040 1,704 6.022 42,1Th)0 30 1,356 1,217 1,704 6,022 42,000 30 1.356 1,217 5.520 5,520 33.845 33,845 52.329 52,329 Trustees, emoluments No Trustee5 recewed remuneration during thè year12023: Nil). No expenses have been pald to the Trustees durin8 the year12023.. £Nill.
HMS Vlctory Preservation Endowment Fund Charlty number: 1147573 Note5 to the financlal ststements for the year ended 31 March 2024 Flxed a55et inve5tment5 Listed Investments rotsl Valuatlon At l April 2023 Additions Disposals Gains and105se5 before management f Less management fee5 deducted 10.731051 10,732,051 435,020 435,020 (2,578.0101 12,578.0101 684.444 146,4951 Net increase In Investment market value 1637,9491 1637.9491 At 31 March 2024 9.227.010 9,227.010 Cash held in Tnvestments At l Apdl 2023 Net movement in the year 346,852 1187,9841 Al 31 Marcth 2024 158,868 Total investment value at l April 2023 11,078,903 Total Investment value at 31 March 2024 9,385,878 Hlstorical Cost as at 31 Marth 2024 16,774,220 Historfcal Cost as at 31 March 2023 14,631,230 The Investment portfolio also indudes £4.975,74512023: E3,349.2491 of short-term low-volatility variable net isset value money-rnarket funds. Debtors 2024 2023 Other debtors 12,879 6,315 308 Prèpayments 13,187 6,623 Credltors: amounts falling due wlthln one year 2024 2023 Other credltors Accruals and deferred income 13,202 71,177 11,360 53,933 84.379 65,293 Page 19
HMS Wictory Preservation Endowment Fund Charity number: 1147573 Notes to the flnancial staternents for the year ended 31 March 2024 10. Analysi5 of net assets between funds 2024 UnrestrlLted Endowment funds funds Total fund5 Fund balan at 31 March 2024 as represented by- Investment a55ets Current assets Current Ilabilitles 158.868 4.911,2 183.6421 9.227.010 77,930 17371 9,385,878 4,988,932 184,3791 4.986.228 9,304.203 14,290,431 2023 UnTestritted Endowment funds funds Total funds Fund balances at 31 Marth 2023 as represented by: Investment assets Current assets Current liabilitie5 346,852 10,732,051 3.284.506 71,366 151,5011 113,792 I1,078,3 3,355,872 165.2931 3,579.857 10,789,625 14,369,482 IL Unrestricted funds At l Aprll Incomlng Transfer between Funds At Oiitgoing Gains and 31 Marth 2024 Unrestrfcted Funds 3,579,857 406.624 {1.143.2431 2,142,9 4.986,228 At l Aprfl Incomlng Out8olng 202Z resour5 Tesour Tfansfer At 31 Marth Gains and Fund5 2023 Unrestricted Funds 11,422fv827 283.317 18,129.1891 2,902 3.579,857 Page 20
HMS Victory Preservation Endowment Fund Charity number: 1147573 Notesto the financlal statements for the year ended 31 March 2024 12. Endowment fund5 At l Aprfl Incoming Outgolng 2023 resources resources Transfer between Funds At 31 March 2024 Gains and losses Endowment Funds 10.789.625 6.$64 133,440} 684.444 12.142,9901 9.304,203 At l April Incoming Outgoing 2022 resources resources Transfer At 31 March Gains and losses Funds 2023 Endowment Funds 11,302,160 3,764 {48,9691 1464,4281 12,9021 10,789,625 Transfers to unrestricted funds reflect amounts disinvested to fadlltate thegrant to NMRN Operation5. 13. Related partytransactlons There were no related party transactions during the pwiod12023.' None). Page21