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 A￿pted 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 prese￿e. 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 V￿rk 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 con￿ntrate 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 s￿￿ey$ 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 v￿rk. undertaken in partnership
with Southampton UnNers1￿S 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 experien￿5 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 'EX￿llenCe 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 gr0￿h 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 ValUat￿n and perf0mlan￿ report.
The Trustees are reS￿nsible 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 End0￿ent 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 charl￿5 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 Charl￿S 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 InStan￿S 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
appIl￿tIon 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 procedu￿5 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
charl￿5 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 c￿dItorS
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 5￿tion 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 con￿rn 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 re￿ived 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 re￿Ived by way of grants. donations and glfts and Is induded in fijll In the ststement of
financTal activities when re￿1Vable.
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 re￿1Vable.
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
Servi￿5 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 In￿￿ed in the g0veman￿ of the chartty and rts ￿ets and are prlmarilv
associated with constitutional and statutory requiremerts.
Investments
Investments held as fixed and c￿rrent 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 End￿rnent
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 I16￿61)
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 resour￿5 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