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2023-09-30-accounts

REGISTERED COMPANY NUMBER: 08079190 (England and Wales) REGISTERED CHARITY NUMBER: 1147921

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 FOR HONOR FROST FOUNDATION

HONOR FROST FOUNDATION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 7
Report of the Independent Auditors 8 to 9
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Financial Statements 13 to 23
Detailed Statement of Financial Activities 24

HONOR FROST FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 30 SEPTEMBER 2023

TRUSTEES A J B Cathie R J Clark J E Curtis C Doumet-Serhal V A Porter O Whitfield P M Wolrich REGISTERED OFFICE 10 Carlton House Terrace London SW1Y 5AH REGISTERED COMPANY NUMBER 08079190 (England and Wales) REGISTERED CHARITY NUMBER 1147921 AUDITORS Azets Audit Services 2[nd] Floor, Regis House, 45 King William Street, London EC4R 9AN SOLICITORS BDB Pitmans LLP One Bartholomew Close London EC1A 7BL INVESTMENT MANAGERS Close Brothers Asset Management 10 Crown Place London EC2A 4FT Cazenove Capital Schroder & Co Limited 1 London Wall Place London EC2Y 5AU

Page 1

HONOR FROST FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

Honor Frost Foundation (HFF) is a charitable company. The Trustees (who are also the directors for the purposes of company law) present their report with the financial statements of the Foundation for the year to 30 September 2023. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) 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 the notes to the financial statements and comply with the Foundation's memorandum and articles of association and applicable law.

OBJECTIVES AND ACTIVITIES

The Objects of the Foundation, as set out in the Articles of Association, are the advancement of research and its publication in the area of marine archaeology with particular but not exclusive reference to the marine archaeology of the Lebanese, Western Syrian and Cypriot coast and archaeologically associated maritime wrecks found elsewhere in Mediterranean waters, by any means which shall be recognised as charitable and in particular without prejudice to the generality of the foregoing:

The Trustees have also recognised the crucial importance of safeguarding and promoting the protection of underwater cultural heritage (UCH) as part of its overall work.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Foundation's aims and objectives and in planning future activities.

ACHIEVEMENT AND PERFORMANCE

• The Honor Frost Archive

With the Honor Frost Archive installed in the Maritime Archaeological Special Collections division of the Library at the University of Southampton, the Special Maritime Archaeological Collections division has been successful in seeking further maritime-archaeological archives, which include those of Sean McGrail, Lucien Basch and Nicholas Flemming, and students and researchers are now using the Frost Archive. The Foundation is actively engaged in exploring further the role of such archives. A small grant was offered to the library this year in support of digitising images.

• The HFF Publication Series

The Foundation has established an HFF publication series which is managed by the Publications Manager.

Regrettably no new volumes were published this year, but a volume containing a selection of Honor Frost’s articles entitled Honor Frost: Selected Works will be published in 2024, together with papers from the second Honor Frost Foundation conference Under the Mediterranean II, held in Malta in November 2022.

Honor Frost’s unpublished book, found in her archives, The Second Life of the Phoenix , will also be ready for publication in autumn 2024.

Work is continuing on the publication of the final three volumes of Tropis symposia - an archiving project of unpublished conferences to which Honor Frost regularly contributed, concerning nautical archaeology of the Mediterranean.

Page 2

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

HONOR FROST FOUNDATION

ACHIEVEMENT AND PERFORMANCE - continued

• Podcast

The Foundation continues to produce the news podcast released every three weeks, entitled DIVE & DIG, presented by Prof. Lucy Blue, aimed at promoting maritime archaeology.

• Cyprus

The Foundation continued to support MARELab, the Maritime Archaeological Research Laboratory at the University of Cyprus, which includes a number of areas of research.

This year a season of excavation was supported at the shipwreck site of Mazotos. The final year of the Mare Cyprium project, which aims to develop digital multimedia applications of six maritime archaeological sites in Cyprus as a means of public engagement, was also completed.

In 2022, the Foundation also developed a project called the Cyprus Regional Development Project (CRDP) that works in partnership with regional and international experts to promote interdisciplinary research, training, workshops and field-based activities, to the benefit of all HFF regional collaborators and grantees. In 2023, six workshops were successfully conducted, and a coastal field survey undertaken.

In summer 2023, the final season of the HFF funded Dreamer’s Bay underwater survey project was successfully completed.

• Lebanon

The HFF Lebanon team continues to undertake important work with the aim of documenting, protecting and promoting the marine archaeological resource in Lebanon, in support of the Directorate General of Antiquities (DGA). Over the last year field work concentrated in the north, in the Al Mina, Tripoli region, with smaller scale projects at targeted sites along the coast.

The Blue House, whose restoration the Foundation supported, is now actively being used as an office by the HFF Lebanon team and regularly hosts seminars and meetings.

The Foundation’s Minor programme in Marine Science and Culture at the American University in Beirut, started in September 2019, continues, and HFF supports a number of external scholarships to attend the course each year.

In the last year, the Foundation established a Pathway scheme to enable promising maritime archaeologists to access training and placement opportunities in order to increase their personal skills and expertise.

HFF Lebanon recently completed a digitisation project to bring together all extant research on the port of Sidon, in collaboration with the DGA. Plans are now afoot to turn our efforts to the World Heritage site of Tyre, to undertake a similar documentation project. This will support HFF’s Tyre Maritime Cultural Landscape Project, which aims to investigate and document the underwater cultural heritage of the area. In the last year, a geomorphological coring campaign and a drone survey were successfully completed at the site.

The first year of a two-year excavation project in Sidon was also undertaken this year.

Finally, in 2023, the Foundation awarded a grant to conduct post-excavation analysis of finds from the Neolithic site of Tabarja.

• Egypt

Support for the activities of the Centre for Maritime Archaeology and Underwater Cultural Heritage (CMAUCH), University of Alexandria, continued.

The Foundation continued to support ongoing research at the Red Sea port sites of Ayn Soukhna, Wadi el Jarf and Berenike, the former of which had its last season this year.

Page 3

HONOR FROST FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

ACHIEVEMENT AND PERFORMANCE – continued

• Sicily

A post-doc based at the University of Swansea which aims to study ships on display, has entered its second year. The intention for 2024 is to revisit the Museo Lilibeo, Marsala, where the Punic ship is displayed, to further assess its state of preservation.

The Foundation also supported a season of deeper water survey off Sicily using Autonomous Underwater Vehicles.

• Occupied Palestinian Territories

The Foundation funded a second season of Maritime Archaeological Survey and Mapping of the endangered marine cultural heritage of coastal Gaza.

• Nautical Archaeology Society (NAS) International Journal of Nautical Archaeology (IJNA)

The Foundation’s three-year annual grant to help develop the NAS international journal (IJNA) and activities concerning its publication, dissemination and related research which previously extended through to 2023, was further extended through to the end of 2024.

• University of Southampton

In 2021, the Foundation signed a contract to fund an Associate Professorship in maritime archaeology at the University of Southampton for a period of seven years. With the appointment now in place, Dr. Crystal El-Safadi successfully completed her first year in this academic post, with teaching and research focused on the eastern Mediterranean.

• British Academy/ Honor Frost Foundation Awards

The British Academy/Honor Frost Foundation annual research awards in maritime archaeology supported one small grant this year.

• Studentships and Bursaries

Several studentships and bursaries were awarded in 2022-2023, to attend conferences, workshops and bespoke training programmes.

Five bursaries were awards to attend the HFF sponsored Maritime Archaeology Post Graduate Research Symposium (MAGS) held at the University of Cyprus. Organized by post-graduate scholars, MAGS is a bi-annual symposium dedicated to maritime archaeology in the Mediterranean, created to allow a space for early career researchers to present their work and to network with their peers.

An additional five bursaries were awarded to scholars to attend other conferences internationally, and training bursaries allowed several students to gain qualifications in diving, as well as attend workshops on dendrochronology, conservation, and ancient manuscript archiving.

The Foundation renewed its commitment to support one student to undertake a Master’s degree in Land and Sea Archaeology at the University of Cyprus.

With the support of the Foundation, one student successfully completed the Diploma in Maritime Archaeology at the CMAUCH, University of Alexandria. The Foundation continued the support for this student when they continued to Master’s degree level in Maritime Archaeology at the same institution, in September 2023. Support for the Diploma continues, with a further four students commencing their studies in September 2023.

In 2023, three HFF-funded doctoral candidates submitted their theses for examination, two from the University of Southampton and one from the University of Oxford. A student from Lebanon, who had previously been awarded a one-year scholarship to undertake a Master’s degree at Southampton, completed her studies and has continued to PhD level, again supported by the Foundation.

The Foundation continues to support a Syrian student to undertake a joint CIVIS PhD (University of Aix-Marseille and the National and Kapodistrian University of Athens), which commenced in September 2020. Another student from the region is about to enter her final year doing a joint PhD at the University of Aix-Marseille and University of Cyprus.

Page 4

HONOR FROST FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

At the University of Edinburgh, the international post-doctoral post supported by the Foundation on the topic Marine heritage and sustainable coastal development in Lebanon , came to an end. (The post-doctoral scholar has subsequently secured a permanent post at the University).

• Underwater Cultural Heritage (UCH) Steering Committee

The Foundation continues to support the Foundation’s Steering Committee on UCH (http://honorfrostfoundation.org/uch/), chaired by Professor Sir Barry Cunliffe. In April 2023, the Steering Committee hosted a regional policy forum event in Alexandria, Egypt that addressed the impact of offshore development on marine cultural heritage.

• Ocean Decade Heritage Network

As a result of the Foundation’s earlier support, the ODHN became an official partner of IOC-UNESCO in the Ocean Decade initiative. The Foundation continues to support ODHN to further raise awareness of cultural heritage within the marine sciences.

FINANCIAL REVIEW

The Foundation does not engage in any fundraising activities.

On income account the Foundation received income of £956,924 and spent £2,309,089 on its charitable activities; the resulting deficit of £1,352,165 has been transferred from capital. On the capital account the realised and unrealised investment gains after management fees amounted to £1,692,342. In total therefore the Foundation’s net assets increased by £340,177 to £40,113,451.

Investment policy

The Foundation has two investment managers Close Asset Management and Cazenove Capital in addition it receives investment advice from Millbank Investment Management. Two trustees constitute the Investment Committee and they meet the investment managers at least once a year to review the performance, the investment policy and the arrangement under which the management of the investments is delegated to the managers. The Committee reports the results of these reviews to the Trustees with any recommendations.

The Foundation is a long-term investor and seeks to maintain the real value of its capital and to produce a reasonable income.

During the year the funds held by the investment managers returned 6.2%. The indices prepared by Asset Risk Consultants showed total returns for the year of 3.8% on the Balanced Asset and 4.7% on the Steady Growth portfolios so the Trustees regard the result as satisfactory.

Reserves policy

To repeat, the Foundation seeks to maintain the real value of its capital. Its opening capital in October 2011 was £30.45m that sum increased by the CPI to September 2023 equals £42.5m compared with the actual value of nearly £40.1m. The Trustees have decided that from 1 October 2023 they will aim to spend annually not more than 3% of the opening value of the fund, in the hope that taking one year with another this should more or less preserve the real value of the fund. As the capital is expendable the Trustees do not consider it necessary to maintain any separate income reserve and indeed are likely to continue spending more than the Foundation’s income.

FUTURE PLANS

The Foundation will continue to explore the acquisition and assessment of maritime-archaeological archives to be lodged in the Special Collections at Hartley Library, University of Southampton.

The Foundation plans to publish more titles, including a number of HFF scholars’ doctoral thesis.

The Foundation will continue its 'rescue missions' for the Directorate General of Antiquities in Beirut when possible. In addition, the Foundation will continue the development of the Tyre Maritime Cultural Landscape Project. The successful Cyprus Regional Development Project will continue, based in Cyprus.

In Education, the Foundation will continue its support for its Minor course at the American University in Beirut for a further four years, including its sponsorship of 3-4 students a year; it will continue its support for MA/PhD scholarships at the following universities: Aix-Marseille, Cyprus, Southampton, CMAUCH, Edinburgh, as well as the post-doc at Swansea.

The Foundation will continue its support of the CMAUCH, University of Alexandria, in terms of bursaries and maintenance.

The Foundation will continue to support the work of UNESCO’s Ocean Decade initiative.

Page 5

HONOR FROST FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Honor Frost Foundation is governed by its Memorandum and Articles of Association adopted and approved at the Annual General Meeting on 22 May 2012.

Honor Frost died on 12 September 2010. The Honor Frost Charitable Trust was created by her will dated 14 September 2007 and was entered on the Register of Charities on 24 March 2011. All the Trust’s assets were transferred to the Foundation on 30 September 2012.

Orlando Whitfield was appointed as a Trustee in August 2023 and the Foundation is now managed by seven Trustees, who are also directors of the Foundation for the purposes of company law, appointed under Honor's will, all of whom served in the year to 30 September 2023, with the offices to which they were elected by the Trustees, namely:

Alison Julia Bewley Cathie, Chair Roger Jackson Clark, Hon. Treasurer Dr John Edward Curtis, OBE, FBA Dr Claude Doumet-Serhal MBE Dr Venetia Ann Porter Orlando Whitfield Peter Marshall Wolrich

The Trustees meet at least four times a year and are responsible for the overall policies of the Foundation.

Reference and Administrative details

The day-to-day management of the Foundation is delegated to Gail Caddy, Financial and Operations Director, Prof. Lucy Blue, Maritime-Archaeological Director, Neelam Seeboruth, Lauren Tidbury and Dr. Danielle Newman.

Advice is obtained from Dr J D Hill (British Museum), and, as necessary, from Dr David Blackman, University of Oxford and Dr Colin Breen, University of Ulster.

Page 6

HONOR FROST FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of Honor Frost Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, 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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Azets Audit Services, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 18th June 2024 and signed on the board's behalf by:

............................................. A J B Cathie - Trustee

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HONOR FROST FOUNDATION

Opinion

We have audited the financial statements of Honor Frost Foundation (the ‘charitable company’) for the year ended 30 September 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis 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 significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information 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 identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

continued …

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HONOR FROST FOUNDATION

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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 responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can 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 instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding 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 statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

John Howard (Senior Statutory Auditor) For and on behalf of Azets Audit Services 2[nd] Floor, Regis House, 45 King William Street London, EC4R 9AN

…………………………………………………

Page 9

HONOR FROST FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (Including Income and Expenditure Account)

FOR THE YEAR ENDED 30 SEPTEMBER 2023

Unrestricted
Income Fund
Unrestricted
Capital Fund
2023
Total funds
Notes
£
£
£
INCOME AND ENDOWMENTS FROM
Investment income
2
955,644
-
955,644
Other income
1,280
-
1,280


Total
956,924
-
956,924
EXPENDITURE ON
Raising funds
3
-
211,280
211,280
Charitable activities
4
Grants
1,505,187
-
1,505,187
Other charitable activities
803,902
-
803,902

Total
2,309,089
211,280
2,520,369
Net gains / (losses) on investments
-
1,903,622
1,903,622
NET INCOME/(EXPENDITURE)
(1,352,165)
1,692,342
340,177
Transfers between funds
1,352,165
(1,352,165)
-
NET MOVEMENT IN FUNDS
-
340,177
340,177
RECONCILIATION OF FUNDS
Total funds brought forward
-
39,773,274
39,773,274
TOTAL FUNDS CARRIED FORWARD
-
40,113,451
**40,113,451 **		 2022
Total funds
£
726,183
105
726,288
310,008
2,058,216
696,846
3,065,070
(2,969,548)
(5,308,330)
-
(5,308,330)
45,081,604
39,773,274

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 10

HONOR FROST FOUNDATION

BALANCE SHEET AT 30 SEPTEMBER 2023

Notes
FIXED ASSETS
Investments
12
CURRENT ASSETS
Debtors
13
Cash at bank
CREDITORS
Amounts falling due within one year
14
NET CURRENT LIABILITIES
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
15
NET ASSETS
FUNDS
17
Unrestricted income funds
Unrestricted capital funds
TOTAL FUNDS		 2023
£
43,035,222
20,909
303,649
324,558
(1,659,357)
(1,334,799)
41,700,423
(1,586,972)
40,113,451
-
40,113,451
**40,113,451 **		 2022
£
42,419,732
12,458
212,376
224,834
(1,550,996)
(1,326,162)
41,093,570
(1,320,296)
39,773,274
-
39,773,274
39,773,274

The financial statements were approved by the Board of Trustees on 18th June 2024 and were signed on its behalf by:

............................................. A J B Cathie -Trustee

............................................. R J Clark -Trustee

The notes form part of these financial statements

Page 11

HONOR FROST FOUNDATION

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2023

Notes
Cash flows from operating activities:
Cash generated from operations
19
Net cash (used in) operating activities
Cash flows from investing activities:
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Dividends received
Net cash provided by (used in) investing
activities
Cash flows from financing activities:
Expenditure attributable to endowment
Net cash (used in) financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period
Cash and cash equivalents consists of:
Cash at bank
Cash balances held by investment managers
12
Cash and cash equivalents at the end of the
reporting period		 2023
£
(2,350,851)
(2,350,851)
(5,857,258)
6,901,295
140,836
814,808
1,999,681
198,348
198,348
(152,822)
847,866
695,044
303,649
391,395
695,044		 2022
£
(1,774,978)
(1,774,978)
(5,977,485)
7,305,250
76,397
649,786
2,053,948
(208,891)
(208,891)
70,079
777,787
847,866
212,376
635,490
847,866

The notes form part of these financial statements

Page 12

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

1. ACCOUNTING POLICIES

General information and basis of preparation

Honor Frost Foundation is a company limited by guarantee in the United Kingdom. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are set out on page 2.

The financial statements have been prepared in accordance with 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) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2017), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

Honor Frost Foundation meets the definition of a public benefit entity under FRS 102. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The financial statements are prepared in sterling which is the functional currency of the charity. The level of round adopted in the financial statements is to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Legal status

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

Preparation of the accounts on a going concern basis

The Foundation has reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. It has therefore continued to adopt the going concern basis in preparing its financial statements.

Income

All incoming resources, including investment income and bank interest, are included in the Statement of Financial Activities (SoFA) when the Foundation is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity's right to receive payment is established.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Expenditure on raising funds comprises costs of the services of the investment managers who manage the investment portfolio held by the Foundation.

Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services. It includes expenditure that can be directly allocated to such activities, and other costs which are of an indirect nature which are necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Foundation and include audit fees linked to the strategic management of the Foundation.

Grants and donations are charged to the SoFA once they are unconditionally approved for payment by the Trustees.

Page 13

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

1. ACCOUNTING POLICIES - continued

Expenditure - continued

Grants offered subject to conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure.

The Foundation is not registered for VAT and expenditure is shown gross of irrecoverable VAT.

Allocation and apportionment of costs

Support costs are allocated on a time basis to Charitable Activities and Governance.

Taxation

The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income and capital gains received within categories covered by Chapter 3 Part II Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Fund accounting

Unrestricted funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Fixed asset investments

Investments are a form of basic financial instruments and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Foundation does not acquire put options, derivatives or other complex financial instruments.

All gains and losses are taken to the Statement of Financial Activities as they arise.

Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Debtors

Prepayments and accrued income are recognised at the settlement amount receivable.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less.

Page 14

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

Creditors

Creditors are recognised where the Foundation has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Accruals and other creditors are recognised at their settlement amount due.

Judgements and key sources of estimation uncertainty

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

2. INVESTMENT INCOME

Dividends received
Interest received
Other income		 2023
£
814,808
140,836
1,280
956,924		 2022
£
649,786
76,397
105
726,288

3. RAISING FUNDS

Investment management costs

Portfolio management 2023
£
211,280		 2022
£
310,008

4. CHARITABLE ACTIVITIES COSTS

Direct costs
Grant funding
of activities
Support
costs
(See note 5)
(See note 6)
(See note 7)
£
£
£
Grants
-
1,505,187
-
Other charitable activities
684,692
-
119,210

684,692
1,505,187
119,210		 Totals
£
1,505,187
803,902
2,309,089

Page 15

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

5. DIRECT COSTS OF CHARITABLE ACTIVITIES

BA/HFF Steering Committee on UCH
DGA response team
Other charitable costs
Staff costs (note 10)
Payroll and pension fees
Legal fees
Executive Directors’ Travel
Lecture events
AVB expenses
Publication costs		 2023

£

2,337
604,314
1,233
72,775
1,298
210
2,525
-
-
-
**684,692 **		 2022
£
689
506,016
2,151
62,462
1,171
540
3,855
182
543
30,061
607,670

6. GRANTS PAYABLE

Grants Awarded 2023 - 2024

Grantee Project Title Award
£
Lebanon
M Allouche-Francis Byblos Mission 12 25,460
American University of Beirut AUB Minor Course in Marine Science 2022-2025 488,216
La Sapienza University Tyre South Survey 25,800
Dr Gilles Brocard Coring Survey, Tyre 19,986
Dr Corine Yazbeck Tabarja Survey Phase II 47,160
Dr Lucy Semaan/Dr Zeina
Haddad Manual of Maritime Archaeology 7,440
Berytus and the Sea: Understanding marine resource exploitation
Dr Canan Çakırlar and marine ecosystems in Roman Beirut 8,420
The paleoenvironmental evolution of a Levantine coastal city in
Dr Francisco Nuñez-Calvo the Bronze Age: the case of Tyre 8,500
Dr Zeina Haddad Archaeological research at Iskandarouna Bay 7,920
Gaza
Dr Georgia Andreou Gaza Project Phase II 32,658
Cyprus
Dr Stella Demesticha Mazotos Project 64,250
North Cyprus
Dr Muge Sevketoglu/Dr Ian Systematic Survey and Protection of Maritime Heritage, North
Hanson Cypriot Coastline 54,885
Travel Bursaries
A Johnson ICAS EMME Conference 3,145
N Nofal Under the Mediterranean II Conference 295
Dr Emad Khalil STAB/Unitwin Conference 1,724

Page 16

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

6. GRANTS PAYABLE – continued

Grants Awarded 2023 - 2024

Grantee Project Title Award
£
Egypt
Dr Peter Campbell/Dr Ziad
Morsy Maritime Archaeological Survey of the Upper Nile - 2022-2025 261,684
Dr Pierre Tallet Wadi el-Jarf Archaeological Mission 2023-2025 40,500
Dr Bérangère Redon Taposiris Magna’s Harbour 10,000
N Hamed Maritime Heritage Conference, Ain Shams University 4,739
Raquda Foundation for Art &
Heritage El Max Rescue Project Phase II 20,000
Centre for Maritime
Archaeology & Underwater
Cultural Heritage (CMAUCH) CMAUCH Operational Support 17,854
CMAUCH Maintenance 4,800
CMAUCH Visiting Lecturer 2,000
CMAUCH Jetty Repair 4,759
M Khedr Alexandria Underwater Survey 4,850
M Khedr Photogrammetry Workshop 2,550
M Khedr Alexandria Field School 9,995
O Mohamed SCUBA Maintenance Course 813
Sicily
Deep-water Survey: Innovative Multi-AUV Survey of Shipwrecks in 81,014
Dr Lisa Briggs the Strait of Sicily (2023 to 2025)
Education & Training
R Abdelhady Conservation Training 515
S Ibrahim PhD, University of Southampton 117,500
N Hamed PhD Extension, University of Southampton 9,750
Dr Arturo Rey da Silva Post-doc Extension, University of Edinburgh 21,300
Student Support, UK and
France Stipend Increase 29,000
Dr Panos Tzovaras Post-doc, University of Ioannina 19,000
R Nader MA Conservation, University of Durham 86,400
A Moustafa Dendrochronology Training 1,871
J Anbar PhD Extension, University of Aix-Marseille 6,932
J Gatt PhD Additional Support, University of Aix-Marseille 5,515
CMAUCH Technical Diving Training Programme 4,990
CMAUCH Annual Bursaries & Stipends 5,400
CMAUCH Diploma & MA Programmes 1,500
Special Grants
Regional Policy Forum 34,821
BAAL Publishing Support 3,963
IJNA Editorial Support 20,000

Page 17

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

6. GRANTS PAYABLE - continued

Grants Awarded 2023 - 2024
Total Approved Grants
Reconciliation of Grants
Grants approved
Unspent grant balances
Overspent grants
Other adjustments
At 30 September 2023
Grantee
Project Title
Developing the Discipline
Dr Rosie Everett
Provenancing Shipwreck Timbers Using Sedimentary DNA
(sedaDNA)
University of Southampton
Honor Frost Archive, Visiting Fellowship
University of Southampton
Archive Digitisation, Southampton
Maritime Archaeological Trust
Listening To Our Past: Phase II
Dr Christina Papoulia
Early prehistoric boatbuilding under the microscope:
object biographies of an experimental logboat		 1,688,695
Award
£
3,139
5,000
11,472
29,500
9,710
1,688,695
(187,628)
943
3,177
1,505,187

Page 18

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

7. SUPPORT COSTS

Management
£
Other charitable activities
31,252
Support costs, included in the above, are as follows:
Trustee costs
Staff costs (note 10)
Sundries
Auditors' remuneration
Auditors' remuneration for non-audit work
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Auditors' remuneration for non-audit work		 Other
Governance
costs
Totals
£
£
£
70,958
17,000
119,210
2023
2022
Other
charitable
activities
Total activities
£
£
63
13
31,189
26,769
70,958
51,894
9,000
7,000
8,000
3,500
119,210
89,176
2023
2022
£
£
9,000
7,000
8,000
3,500

8. NET INCOME/(EXPENDITURE)

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 September 2023 nor for the year ended 30 September 2022.

Trustees' expenses

Trustee expenses of £3,842 (2022: £557) were paid to three (2022: three) trustees during the year in relation to travel costs.

Page 19

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

10. STAFF COSTS

2023
£
Wages and salaries
88,376
Social security costs
5,266
Other pension costs
10,322
103,964		 2022
£
81,918
1,380
5,933
89,231

Staff costs have been split between direct costs and support costs on a 70%/30% basis.

The average monthly number of employees during the year was as follows:

2023 2022
Administration 3 3

No emoluments over £60,000 were paid in the period.

The key management of the Foundation consists of the trustees only.

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Charitable activities
Investment income
726,183
Other income
105
Total
726,288
EXPENDITURE ON
Raising funds
-
Grants
2,058,216
Other charitable activities
696,846
Total
2,755,062
Net gains/(losses) on investments
-
NET (EXPENDITURE)
(2,028,774)
Transfers between funds
2,028,774
NET MOVEMENT IN FUNDS
-
RECONCILIATION OF FUNDS
Total funds brought forward
-
TOTAL FUNDS CARRIED FORWARD
-		 Endowment
fund
£
-
-
-
310,008
-
-
310,008
(2,969,548)

(3,279,556)
(2,028,774)
(5,308,330)
45,081,604
39,773,274		 Total funds
£
726,183
105
726,288
310,008
2,058,216
696,846
3,065,070
(2,969,548)
(5,308,330)
-
(5,308,330)
45,081,604
39,773,274

Page 20

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

12. FIXED ASSET INVESTMENTS

At 1 October 2022
Additions
Disposals
Net realised gains on disposals
Net unrealised gains on revaluation
At 30 September 2023
Investments at market value comprise:
Cash balances held by investment managers
Investments at historical cost
UK Equities
Overseas Equities
Fixed interest
Alternatives
Commodities
Property
Multi assets
Sterling Liquidity Funds		 Listed
Investments
£
42,419,732
5,857,258
(7,145,390)
442,470
1,461,152
43,035,222
£
391,395
43,035,222
30,655,508
6,140,408
9,436,515
3,218,115
4,592,039
777,416
385,538
16,540,475
1,553,321

The following investment has a market value in excess of 5% of the total market value of investments:

Market Value
at 30
September
2023
£
S & W Gryphon East River Fund
20,328,803		 Proportion
of total
%
48.65%

The foundation has committed to invest circa £200,000 (£267,000) annually in the Cazenove Capital portfolio. The uncalled commitment is $214,428. The uncalled commitment is mainly covered by the Vanguard FTSE All-World tracker plus USD cash.

13. DEBTORS

Prepayments and accrued income 2023
£
20,909
**20,909 **		 2022
£
12,458
12,458

Page 21

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023 2022
£ £
Grant commitments 1,609,562 1,490,022
Accruals and deferred income 49,795 60,974
**1,659,357 ** 1,550,996
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£ £
Grant commitments 1,586,972 1,320,296
16. ANALYSIS OF NET ASSETS BETWEEN FUNDS
2023 2022
Unrestricted Unrestricted Total funds Total funds
Income fund Capital fund
£ £ £ £
Investments 43,035,222 43,035,222 42,419,732
Current assets 324,558 324,558 224,834
Current liabilities (1,659,357) (1,659,357) (1,550,996)
Long term liabilities (1,586,972) (1,586,972) (1,320,296)
**40,113,451 ** **40,113,451 ** 39,773,274
17. MOVEMENT IN FUNDS
Net Transfers
movement in between
At 1/10/22 funds funds At 30/9/23
£ £ £ £
Unrestricted funds
Income Fund - (1,352,165) 1,352,165 -
Capital Fund 39,773,274 1,692,342 (1,352,165) 40,113,451
TOTAL FUNDS 39,773,274 340,177 - **40,113,451 **
Net movement in funds, included in the above are as follows:
Incoming Resources Gains and Movement in
resources expended losses funds
£ £ £ £
Unrestricted funds
Income Fund 956,924 2,309,089 - (1,352,165)
Capital Fund - 211,280 1,903,622 1,692,342
TOTAL FUNDS 956,924 2,520,369 1,903,622 340,177

Page 22

HONOR FROST FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

17.1 MOVEMENT IN FUNDS – PRIOR YEAR

Unrestricted funds
Income Fund
Capital Fund
TOTAL FUNDS
Net movement in funds, included in the above are
Unrestricted funds
Income Fund
Capital Fund
TOTAL FUNDS		 At 1/10/21
Net
movement in
funds
£
£
-
(2,028,774)
45,081,604
(3,279,556)
45,081,604
(5,308,330)
as follows:
Incoming
resources
Resources
expended
£
£
726,288
(2,755,062)
-
(310,008)
726,288
**(3,065,070) **		 Transfers
between
funds
At 30/9/22
£
£
2,028,774
-
(2,028,774)
39,773,274
-
39,773,274
Gains and
losses
Movement in
funds
£
£
-
(2,028,774)
(2,969,548)
(3,279,556)
(2,969,548)
**(5,308,330) **

18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 30 September 2023 (nor in the year ended 30 September 2022).

19. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2023 2022
£ £
Net income for the reporting period (as per the statement of financial
activities) 340,177 (5,308,330)
Adjustments for:
Loss/ (Gain) on investments (1,903,622) 2,969,548
Interest received (140,836) (76,397)
Dividends received (814,808) (649,786)
Expenditure attributable to endowment (198,348) 208,891
(Increase)/ Decrease in debtors (8,451) (10,194)
(Decrease)/ Increase in creditors **375,037 ** 1,091,290
Net cash provided by (used in) operating activities (2,350,851) (1,774,978)

Page 23

HONOR FROST FOUNDATION

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023 2022
£ £
INCOME AND ENDOWMENTS
Investment income
Dividends received 814,808 649,786
Interest received 140,836 76,397
Other Income 1,280 105
Total 956,924 726,288
EXPENDITURE
Investment management costs
Portfolio management 211,280 310,008
Charitable activities
Salaries 61,863 57,342
Social security 3,686 966
Pensions 7,226 4,154
Other charitable costs 610,409 543,497
Payroll and pension fees 1,298 1,171
Legal fees 210 540
Grants **1,505,187 ** 2,058,216
2,189,879 2,975,894
Support costs
Management
Trustees' expenses 63 13
Wages 31,189 26,769
31,252 26,782
Other
Sundries 70,958 51,894
Governance costs
Auditors' remuneration 9,000 7,000
Auditors' remuneration for non-audit work 8,000 3,500
17,000 10,500
Total resources expended 2,520,369 3,065,070
Net expenditure before gains and losses (1,563,445) (2,338,782)
Recognised gains and losses
Realised and unrealised gains / (losses) on fixed asset investments 1,903,622 (2,969,548)
Net income/(expenditure) 340,177 (5,308,330)

This page does not form part of the statutory financial statements

Page 24