REGISTERED CIIARITY NUMBER: l 1Si323 Report of the Trustees and Financial Statements for the Year Ended 31st Augusi 2024 for Royal Merchant Navy Education Foundation Sh¢¢n Stickiand Chartered Accounlants Statutory Auditors 7 East Plant Chichester Wesi Sussex P019 ITR
Royal Merehant Navy Edueation Foundation Contents of the Financial Statements for the Year Ended 31st August ?024 Page Report of the Trustees Report of the Indtpendent Auditors Statement of Financial A¢tivits io Bl*nce Sheet Cash Flow Statement 12 Notes to the Cash Flow Statement 13 Notes to the Financial St2tements 14 to 2? Detailed Ststement of Financial Activitie$
Royal Merchant N2vy EdUtion Foundation Report of the Trustees for the Year Ended 31st Augus¢ 2024 The trustee$ present their report with the financia] stalemenis of the charity for the year ended 3 1st Auoust 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Reeornmended Pra¢ti¢e applicable to charities preparing their accounts in accordance with ihe Financial ReFXlrting Stsndard applicable in the UK and Republic of Ireland (FRS I) (effective l January ?019). REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 15J32) Principal address l a Charnham Lane Hun(v¢rford Berkshire RG17 OEY Trustees Ms Linda Cotton (appointed 31.1?.23) ($1¢d 31.1.24) Mr Peter Hulse {resigned l8.7.24) Dr Rodney Owen-Jone5 Ms Lesley Robinson Chainnan Cdre Michael Cochrane OBE Mrs Emma McKendri¢k BA Judge Simon Cooper DL Ms Claire Sneddon BA (resigned l? 10.23) Cdre William Walworth CBE (appointed 95.4.?4) Chief ExÈcutlve Officer (CEO) Ms Linda Cotton Other Officers Mrs Diana Pearson (Part-tirne) Miss Louise Docherty (Part-time) Honorary Viee-Presidents lJieutenant-Commander Jeremy D Devitt RN (Ret'd) Mr John Adey MA (Oxon) Auditors Sheen Stickland Chartered AccounLqnts Statutory Auditors 7 Easi Pallant Chichester West Sussex P019 ITR Bankers Handelsbanken Newbury St Anthony's HoLEse Oxford Square 9_? l Oxford Street Newbury Berkshire RG14 IJQ Page I
Roy21 Merchant N2Try EducatAon Foundation Report of the Trustees for the Year Ended 31st Auuust 2024 REFERENCE AND ADMINISTRATIVE DETAILS Solicitors Batrs Wells Braithwaite LLP 10 Queen Street P]a¢e London EC4R IBE Blake Morgan LLP 6 New Street Square London EC4A JDJ Investment Advisors Meridiem Investhient Management LLP Riverside House ?a Southwark Bridge Road London SEI 9HA Insurers NFU Mutual Dunn House Chamham Lane Hungerford RG17 OEY OBJEcrtVES AND AcfiviTIES Aims and objectives The object of the Foundation is to afford charitsble benefil and relief io Foundatiofters by providing for or toMords iheir maintenance and education in accordance with the principles of Chrisiian religion and rnornlity and by assisting ihem in training for and taking up employment. Provided that: "Foundationers" means the children and young pwple WI are in need and are the natyral or adopted Children or other legal dependents of a person who has served or is servinu at sea in the Merchant Navy or Fishing Fleer or Ehe Royal National Lifeboat Enstilu¢ion (RNLI) provid¢d that priority may bc given to Foundalion¢rs who are Briiish or have at least on¢ Britith parent. A person "servin% at sea in the Merchant Navy" Mn$ any seafarer workints in any capacity aboard a merchant vessel whiGh in¢ludes but is not limited to passenger liners, ferries, container ships. tanke, bulk carriers, break bulk and refrigerated cargo ship4 Royal Fleet Auxiliaries (or their equivalent). c4)aster% specialist ships {e.g. RNLI lifeboats. deep sea rigs. salvage vessels. oil support vessel& lighthouse lenders etc.I luxury privale charler yachts. A person "serving at sea in the Fishing Fleet" means any seafarer working in any capacity onboard inshore or deep-sea flshing vessels. A person "servinu at sea in the Royal National LIfelat Institution" means any crew member of a lifeboat operated by this Institution., Page 2
Royal Merchant Navy Edutation Foundation Report of the Trustees for the Year Ended 31st Autmst 2024 OBJECTIVES AND ACTIVITIES Objectives, strategies and artivitiès The Foundation's property assets comprise th¢ unenctmbeTed freehold of some 262 acres of the Grade J1* Bearwood Estate of which= c. 202 acres is leased until ?l?I to BeaTwd Lakes Golf Club" and c. 60 acres of woodland called Link Wood is leased lo Reddam House (Berkshire) until ?7th March 2031. In addition, the Foundation retains a portfolio of quoted investrnents. Public benefit The following activities are undertaken to further public benefit". Providing support and funding to existing Found&ioners to enable them to mlMise and Achieve their pontIal. Identifying new Foundationers who qualify for support and would benefit from access to the Foundation's fijnding during their forniative years. Developing mark.eting activities to identify new Foundation¢rs. The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act ?01 I to have due regard to the public benefit guidance published by the CharÉry Commi&sion for England and Wales. Equality, Diversity and Inelusivity l. Governance Approach Blind to Individualities= The Foundation takes a neutral and unbiwd approach ioward its beneficiaries. treating each as an individual with unique needs and circumstance& Diverse Board Cornposition- The Board demonstrales diversity in professional backgrounds and expertise. includino legal, financial, educational, maritime, heakhcare. and judicial fields. This vartety ensurcs a well-rounded perspective in decision-mak'ing. . Support for Beneficiaries Focus on Need.. Th¢ Foundation prioritise5 bcnefjciaries identified as "needy," emphasizing their unique challenges and aspirations. Education and Career Training: It Undersr¢S education and training as tools for empowernient, enabling disadvantaged young individuals to access opportunities thal can lead to fulfilling and productive lives. 3. Commitment to Inclusivity The Foundation's prdclices align with inclusive principles ensuring that FKJth governance and kneficiary support refle broad perspectives and equitable treatmenl. This approach supports the Foundation's mission of fostering opportunity and addressing inequality effectively. ACHJEVEMENT AND PERFORMANCE Charitable activitie$ Having agreed the widening of the bencficiary-¢lass crircri4 on 5th July 20?? the Charity Commission gave tts formal consent under s ?26(?)(a) of the Charities Act ?0 I I to amend the Foundation's objects lo read: Page i
Royal Merchant Education Foundation Report of the Trustees for the Year Ended 31st August 2024 ACHIEVEMEKf AND PERFORMANCE Charitable activities The objects of the Foundatiorl are in order of priority: to afford charitable benefit and relief to Foundationers by providing for or towards their maintenance and education in accordance with the principles of Christian religion and morality and by assisting them in training for and taking up ernploymenL and to support the charitable objects of organisations that opernle predominantly in Great Britain and that have activities whi¢h could include contnbuting towards the maintenance training or education of Foundationers. Provided that: "Foundationers. means the children and young people who are in need 2nd are the natural or adopted children or other legal dependents of a person who ha5 served or is s¢Ning at sea in the Merchant Navy or Fishing Fleet, or the Royal National Lifeboat Inststution provided in either c&se that priority Enay be oiven to FoLtndatRoners who are British or have at least one British parenL A person "serving at sea in the Merchant Navy" means any seafarer working in any ¢apacitv aboard a merehant vessel which in¢lud¢s bul is noi limited to passenger liners, ferries, container ship& tanker8 bulk carriers. break bulk and refriger&ed cargo ships, Royal Fleet Auxiliarie5 (or their equivalent). coaster4 specialist ships {e.g. RNI.I lifeboats. deep sea tugs, salvage ve55¢1s. oil support vessels. lighthouse tenders etc). luxury or ehartcr yachts. A person serving ai sea in the "Fishints Fleet" means any seafarer working in any capacity al)oard inshore or deep-sea fishintv vessels. A person "serving at sea in the Royal National Lifei#)at Institution" means any crewmember of a lifeboat operated by this tnstitution. The Foundation's Members approvcd this chan8e ai their meeling on 10th October 2022. The TSleeS had three purposes for this application lo the Charity Commission: to enable the Foundation to make re-payment grants to othercharities: and to enable the Foundation to mak"¢ grants to charitie& and to be able to deploy the Foundation's significant resources more widely. In the year. the Trustees have: Seen a slighi increase in the number of beneficiaries to 107 (?093: 103). M8intsined the monthly grants to undergraduates @ £600 pm for those living away from home and £400 pm who remain at home their studies. These payments continue to be made monthly in artears and a ¢onditional upon ea¢h recipient self-certifying their continued attendance monthly at their place of education and providing an attendance fomi signed and stamped quarterly. Approved grants of up to £?00 pa towards the costs of beneficiaries, school unifornis and £500 pa iowards their costs of living. All beneficiaries meet the Found&tion's eli8ibility criteri& Closer collaboration with the Sailors, Children'5 Society and the Royal Liverpool Seamen's Orphan Institulion have bolstered support for ¢dUtional advan¢ement4 particularly in FuTther Education. leading to an iTJ¢rease in in beneficiaries. We have supported the United Kingdom Sailing Academy (UKSA) reflecting a commitment to maritime education and care¢r training, empowerirLg young individuals to e.xplorc opportunities in the maritime industry. They inspire and support young people w broaden their horizons through eduration and trdining for careers at sea and their ambition És to work with young Feople who need our help mo& to build positive futures and pathways inw maritime employment. We would Itke to take this opportunity to celebrate those who have graduated from univetsities across the UK with outstanding result% highlighting the Foundation's appftciation of academic dedication and effort. Not all of our students follow the same educational path. Vootional trainino apprenti¢¢ships. creative endeavour4 and entrepreneurship are supported, reflecting the Foundation's holistic and inclusive philosophy toward individual growth. Collaboration with like-minded organisations has fosteTed meaningful Partnershi enhancing resource sharing and support mechanisms. This multifaceted approach emphasizes inclusivity. adaptability. and emwern]e n¢ celebrating and supporting the diverse and unique paths of all its beneficiaries. Fundraisino aetivities As in previous years, no fundtaising has been undertaken. Page 4
Royal Merchant Navy Education Foundation Report of the Trustees for the Year Ended 31st August 2024 FINANCIAL REVIEW Policy on reserves Funds shown on the Charity's balanee sheet totslled L?1.559,385 (?093: £20,168 ?54) of which £95.)49 {?0?": £17,461) is restricfrd, because the capital or income is not available for the general purpose of the ChaDity. The Charity's tangible fixed assets are held for use by the Charity. The slaled value of the fixed asset4 including investlnents. is £22.156597 (2023: £20,897,723) Working capitsl is adequate in the short tem to meet needs and the Foundation has neither overdraft facilities nor any charge on assets. The Bearwood Estste In l919, the Foundation was given the freehold of the 493a BearwLX)d Estate by Sir Thomas Lane Devitt Bt and Sir Eric Yarrow Bt. Benveen 2012 and ?015. the Tte¢S disposed of 23 la of this Estate while relaining the fteehold of the With ihe disposal of the ?3 la of the Estate, the Foundation continues to have a high level of reserves as a safety net to cover the costs of educating beneficiarie& Investrnent policy 2nd objeetives The Trustees, investment policy tak'es account of ihe Tntstees, desire io maintain and 8row over tirne Ihe real value of the capital and income and to reflect their ambiiions to maximise the educational supp)rt available to beneficiaries. FUTURE PLANS The Trustees continue to evolve plans for the Foundatiort's fvtt]re. but this dei'elopmenL is being constrained by national and inEernational uncertainty. Given that aboui 47 % of ihe Bearwc(Jd Estate has been sold and the reiained remainder leased, the Trustees continue to move the charity forward with due diligence. ROYAL MERCHANT NAVY SCHOOL FOUNDATION (309047) The Royal Merchant Navy khool Foundation, a regisled charity (number 309047) which is controlled solely by the Foundation's Trustee4 continues even thouJts it reeeived no income nor incurred any ¢xp¢nditure in the year under report. The Chartty Commission has authorised Trustees to a totsl return approach to investments. ACKNOwLEDGEMEs The Trustees acknowledge the generosity of all our many supporters and extend our thanks for their help towards tl)e disadvantaged children of Se8fars. The Trusrees also with to record their appreciation of the hard work of all the Foundation's stsff. grRUCTURE. GOVERNANCE AND MANAGEMENT Governino document Royal Merehant Navy Education Foundation: wa5 founded in 1827. was registered as a Charitable Incorp)rated Organisation in 13. is governed by.. its Constitution dated ?4th July ?013 which wds approved by ihe Charity Commtssioners on 9th August 2013. the Board of Trustees &% listed above.
Royal Merchant Navy Education Foundation Rèport of the Trustees for the Year Ended 31st August 2024 STRUCTURE, GOVERNANCE AND MANACEMENT Recruitment and 2ppointment of new trustees Trnstees are appointed at a meeting of the Main Board of Trusiees on nominations received from seTving Trustees or employees. Organisational structure The Board is legally responsible for the overdll rnan4rvement and control of the Foundation and meets at least three times each year. The whole Board is directly involved in all mafrers of the Foundatioj). The day-to-day management of the Foundation is delegated to the CEO. Induetion and traininu of new trustees The induction pro¢¢ss includes the opportunity. prior to election, to meet executive staff and to access past A¢¢ounts and Minutes. and Trustees are directed to the advice on their duties and responsibilities available both on the Charity Commission website and others. TTUStees are also invited to participate in seminars relevant io their duties. Key managemènt rernuneration Trustees are responsible for Staff remuneration the review of which fonns part of the budgetary approval process in October ¢h year. Rfisk management The Trustees are responsible for the management of risks faced by the Foundation. Throughout Ihe year. new risks are identified and assessed, and controls established. A fomial review of all identified risks is undertaken each year.. in particular, a review of the Investment Manageffs perforniance is carried out annually. Controls in place to manage the risks include maintaining: Clear terms of reference and agenda frjr Trustee Board and ad hsx Sub£ommittees. Strategic planning, budgeting, management accounting and financial controls. A cUent Investment ManaThement Agreement. Leases or similar legal agTecments with all tenants of the Foundation's propety devolving, where possible, liabilities to the tenants. Insurance where appropriate. Serious Ineidents No serious incidents occurred in the year under reporL Page 6
Royal Merchant Navy Educatio Foundation Report of the Trustees for the Year Ended 31st August 2024 srATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are responsible for preparing the Report of the TnteeS and the financial statements in accordance with applicabLe law and United Kingdom Accounting Standards (United Kingdom Generdlly Accepted Accountinu Practice}. The law applicable to charities in England and Wales. the Charities Act ?011, Charity (Accounts and Reports) Regulations ?008 and the provisions of the trust deed quireS the truslees 10 prepare fInancia] statements for e2¢h financial year which give a true and fair view of the state of affairs of the ehaTity and of the incoming resources and application of resource8 including the income and exyenditUAE, of the charity for that period. In pparIng those financial staternent4 tbe tTUStees are qUired to select suitable accountino
policies and then applv them consistendy. observe the methods and principles in the Charity SORP. make judgements and estimates ihat are reasonable ld prudenl state whether applicable accounting standards have been followed. subject to any material departures dis¢losed and explained in the financial statements. prepare the financial statements on the goints concem basis unless it Is inappropriate to presume that the charity will continue in business. The trusl¢es are responsible for kttping proper accounting records which disclose wirh reasonable accura¢y at any lime the financial position of the charity and to enable them to ensure thai ihe financial statements comply with the Charities Act 201 I, The Charity (Accounts and Reports) Regulations 2008 and the provisions of the trusl deed. They are also responsible for safeguarding ihe assets of the charity and hence for taking reasonable steps for the PVentIon and detection of fraud and other irretsularities. Approved by order of the tM)ard of trustees on d signed on its behalf by.. Ms Lesley Robinson - T Page 7
Report of the Independent Auditors to the Trustees of Royal Merchant Navy Education Foundation Opinion We have audited the financial statements of Royal Merchant Na EdUtiOn Foundation (the 'charity') for the year ended 31st August 20?4 which comprÈse the Statement of Financi21 A¢tivitie4 the Balance Sheet, the Cash Flow Statement and notes to the financial statements. including a summary of significant accounti policies. The financial reporting framewoL* that has been applied in their preparation is applicable law and United Kinodom Accounting Standards (United Kingdom Generally Accepted Accouniing Practice). In our opinion the fmancial statements= glve a true and fatr view of the state of the charity's affairs as at 3 1st August 7024 and of its incoming resources and application of resources, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Pwtice; and have been prepared in accordance with the requirements of the Charities Aci ?01 l. Basis for opinion We conducted our audit in accordance with Iniemational Sw)dards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are firther described in the Audirors, responsibilities for the audit of the financial statements section of our ttport. We are independent of ihe charity in accordance with the ethical requirements that are levan1 to our audit of the fmancial statements in the UK. including the FRC'S Ethical Standar and we have fulfilled our other ethical responsibililies in accordance with these requirements. We believe that the audit ¢vid¢nc¢ we have obtained is suifKieni and appropriate lo provide a basis for our opinion. Conclusion5 relating to going concern In auditing the financial ststements, we have concluded that the trstee$, use ofthe going concern basrs of accounting in Ihe prepakztion of the financial statements is appropriale. Based on the work we have perfornied, we have not Adenti fied any material uncemainties ]Elaling to events or conditions that, individually or collectively. may ¢asr significant doubt on ihe charity's abil ity 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 responsibili(ies of the trustees wirh resp to going concern are described in th¢ r¢l¢vanr sections of this rep)rt. Other inforniation The trustees are responsible for the other inforniation. The other inforn]alton comprises the inforniation included in the Annual Report, ocher than the financial statements and our Report of ihe Independent Auditors thereon. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otherwise explicitly stated in our repo¢ we do not ¢xpre&s any ftimi of ¥ssurnn¢¢ ¢on¢lusion th¢r¢on. In connection with our audit of the financial sLitemcnt4 our responsibility is to read the other infonnation and. in doing so, Consider whcther th¢ other infomiation is materially inconsistent with th¢ financial statements or our knowledge obtained in the audit or otheNqse appears to be materially misstated. Jf we identify such material inconsistencies or apparent material misstatementl we are required to delennine whether this gives rise to a material misstalement in the financial statements themselves. If, b&sed on the work we have rforn]ed, we conclude that there is a material misstaternent of this other inforn]ation. we are required io report that fact. We have nothing to report in Iliis regard. Matters on which we are required to report by except)OD We have nothing to report in respect of the following matters wheTe the Charities (Accounts and Reports) Regulations 2008 qUIreS us to report to you if, in our opinion- the inforniation given in the Report of the Trustees is inconsistent in any material respect with the financial statements. or 5uffiGient accountiJ]g COrdS have not been - or the finan¢ial ststements are not in agreement with the accounting records and returns. or we have not received all the infomiation and explanations we require for our audiL Page 8
Report of the Independent Auditors to the Tnlstees of Royal Merchant Navy EducatlOD Foundation Responsibilities of trustees As explained more fully in the Statement of TTUStees' Responsibilities. the trustees a responsible for the preparation of the finan¢Tal statements which give a tnje and fair view. and for such internal control as the trustees detetTnine is necessary to enable the preparation of financia] statements that are f from maertal misstatemenl whether due to fraud or error. In preparing the fman¢ial statement& the truslees Teswnsible for assessing the ¢harity's ability to continue as a going concern, dis¢losTn& as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidaie the charity or to cease operations. or have no realistic altemative butto do so. Our responsibilities for the audit of the financial ststements We havc been appointed as auditors under Section 144 ofihe Chart(ies A¢t ?01 l and report in accordance wilh the Act and relevant reoulations made or having effect thereunder. Our obje¢tives are to obtain reasonable assurdn¢e about whether the fiJ)ancial statements as a whole are free from material misststemenL whether du¢ io fraud or error. and to issue a Report of the Independent Audirors that includes our opinion. Reasonable assurance is a high level of assurdnK but is not a guarnntee thai an audit conducted in accordance with ISAS IUK) will always deie¢l a material misslatement when it exists. Misststements arise from fraud or error and are ¢onsidercd material if, individually or in ihe aggregate. they Could reasonably be expected to influence the econotnic decisions of users taken on ihe basis of these finaticial stslemenls. The extent lo which our procedures are capable of detecting irregularities. including frdud is detsiled below: enquiry of man&gemenL those charged with governance and the entity's soliciiors around actual and potential litigation and elaims- enquiry of enlity's staff to identify any instan$ of non<¢)mpliance with laws and regulations; reviewing minutes of meetings of ihose charged wilh oovernance. reviewing financial statement disclosuS and testing to supw)rting documentation to $¢55 complianee wilh applicable laws and regulations- and auditing ihe risk of management OveIde of controls including through testing journal entries and other 2djustTnents for appropriaienes4 and evaluating rhe business rdtionale of significant Irdnsaclions outside the nomal course of business. A further description of our responsibilities for the audit of the financiil ststements is loeated on the Financial Reporting Council's websit¢ at www.frc.org.ukJauditorsresp)nsibilities. This description fornis part of our R¢port of the Independent Auditors. Use of our report This rep)rt is made solely to the charity's trust¢e& as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work h&$ been UT]dertaken so that we mitsht state io the charity's truslees those matters we are required ¢0 state to them in an audilOTS' report and for no other pUoSe. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinion5 we have fornied. Sheen Stickland Chartered Accountants Statutory Auditors 7 East Pallant Chichester West Sussex P019 ITR Date: .2.l'.i Page 9
Royal M¢rehant P4avy Edueatioll Foundation Statement of Finantial Activities for the Year Ended 31st Aust 2024 ?0?3 Total fijnds Unrestricted fund Restricted fijnds Total funds Notes INCOME AND ENDOWMENfs FROM Donations and legacies ?94 20,000 10.073 Investment income Other income 540.101 540.101 549,787 1.017 Totsl 543,J95 56J.395 560.877 LXPENDITURE ON Raising ndS 181,68? 181.68? 183,038 Charitable activities Grants to Foundationers 559.658 12.11? 571.770 416,48? Totsl 741.340 12.112 75j 45? 599 5?0 Net gains on investtnents 1.581.188 1.581 188 ?6,9?5 NET INCOMEI(EXPENDITUKE) 1.383.243 7,888 1,391,131 (11,718) RECONCILIATION OF FUNDS Total funds brought forward ?0,150,793 17,461 20,168.?54 20,179,97? TOTAL FUNDS CARRIED FORWARD 21,5i4.Oi6 ?1,559,385 ?0.168 ?54 The notes forni part of these financial statements Page 10
Royal Merchant Navy Education Foundation Balanee Sheet 31st August 2024 ?0?4 Total nds ?023 Total nds Utvestricted fund Restricted funds Notes FIXED ASSETS Tangible assets Investments Investments Investment property io 1,964 ,964 11,611 li 17,954,63i 4.?00.000 17.954.63J 4 ?00.000 16,686,11? 4.?00,000 .156,597 ?2,156.597 ?0,897.7?3 CURRENT ASSETS Debtors Cash al bank and in hand 13 850 70.051 850 95.400 716 ?5.349 70,901 ?5,349 96.250 CREDITORS Amounts falling due within ¢)ne year 14 (377,947) (377.9471 (407,0311 NET CURRENT ASSETS 1307.046) ?5.349 (281.697) (394.?35) TOTAL ASSETS LESS CURRENT LIABILITIES ?1,849,551 25.349 ?1,874,900 20,503.488 CREDITORS Amounts failing due after more than one year 15 (315,515) (315,515) (3i5,?34) NET ASSETS 215i4,036 25.349 91,559.385 ?0,,168.?54 FUNDS Unrestricted funds Restricted funds 17 21.534.036 ?5.349 ?0.150.79) 17.461 TOTAL FUNDS ?1.559.385 20.168 ?54 The fi ncial statements were approved by the Board of Trustees and authorised for issue on were signed on its beha]f by: Ms Lesley Robinson - T stee The notes fonn part of these financial statements
Royal Merchant Nawy Edue8ti0 Foundatio Cash Flow Statement for the Year Ended 31st August 2024 2024 ?0?3 Notes Cash flows from operating adivities Cash generated from operations {767.795 (74l.684) Net cash used in operatiTrg activities 767.795) 741.684) Cash flows from investing activities Purchase of tangible fixed assets Puwhase of fixed asset investmenis Sale of tanoibl¢ fixed assets Sale of fixed asset investments Dividends received Rental income received {1,65)) (8.376,953) 11,399) {4,976,500) 11,500 5,1?1,018 367,488 18? 799 8.689.620 357.80? Net cash provided by investing activities 851 115 704.406 Change in cash and eash equivalents in the reporting period Cash and cash equivalents at the beginning of the reportinu period 83.320 (i7,?78) 12.080 C*$h 2nd cash equlvalents gt the end of the reporting period 95,400 The notes fom part of these financial statements Page 12
Royal Merchant Navy Education Foundation Notes to the Cash Flow Statement for the Year Ended 31st August 2024 RECONCILIATION OF NET INCOMEI(EXPENDITURE) TO NEf CASH FLOW FROM OPERATING ACTIVITIES ?0?4 ?0?3 Net IDcome/(expendithre) for the reporting rIod (as per the Statement of Financial Activities) Adjustments for: Depreciation Charges GaTn on investhients Lossl(profIt) on disposal of fixed assets Dividends received Rental income received OncreaseydeLrcasc in debtors Decreas¢ in creditors 1.391.131 (11.718) 7,?90 (?6,9?5) (1,017) (367,4881 (182,299) 680 160.?07) (1,581.188) (i57.80?) (182.299) (134) (48.803 Net cash used in operations (767.795) 1741,684) AJYALYSIS OF CHANGES IN NET FUNDS Ai 1.9.2i Cash flow At 31.8.24 Net elsh Cash at bank and in hand 1 ?,080 83.3?0 95,400 83.3?0 95.400 Totsl 83.3?0 95.400 The notes form tArt of these financial statements
Royal Merch2nt Navy Education Foundation Notes to the FiDaDrial Statements for the Year Ended 31st August 2024 AccouKfiNG POLICIES B2sis of preparing the financial statements The financial statements of the charity, w,hich is a public benefit entity under FRS 10? have been prepared in accordance with the Charities SORP (FRS 10?) 'Accountino and Rew)rting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance wilh ihe Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 10?) (effective l January ?019)', Financial Reporting Standard 102 'The FitwKial Reporting Standard applicable in the UK 2nd Republic of Ireland, and the Chartties Aci ?01 l. The financial statemenls FLave been prepared under ihe historical Cost convention, with the exception of inveslments which are included at market valu< as modified by the reva]uation of certain assets. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Expenditure Liabilities are recognised as expenditure as soon as there is a legal OT constructive obligation committing the charity to that expenditure, it is probable that a trdnsfer 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 lh aggregate all cost related to the tegOry. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a bLsis consistent wilh the use of Tesourees. Grants offered subject to conditions which have not bttn met al the year end dale are noted as a Commitment but not a¢¢rued as expenditure. Tangible fixed assets Depreciation is provided at the following annual rdtes in order to write off each ass over its estimated useful life. Computer equipment 33°A on cost Individual fixed &ssets ¢ostAng more than £?50 are capitalised and included at cosi. Investment property Investment property is shown at most ¢1 valuation. Any aggregate SUTpIu5 or deficit arising from ¢hanges in falr value is recognised in the Slalement of Financial Activities. Taxation The ¢haTity is exempt from t&x on its charitable activities. Fund aecounting Unrestricted funds can be used in aordance with the ¢harttable objlIveS at the discretion of the trustees. Restricted funds can only be used for particular restricted puryjoses within the objects of the charity. Restrietions aris¢ when specified by the donor or when fvnds a rnised for particular restricted putposes. Further explarkation ofthe nature and purpose of each fund is included in the notes lo the financial ststements. Pension costs and other post-retirement benefits The Gharity operdtes a defined contribution pension herne. Contributions payable to the charity's pension scheme a charged to the Statement of FiThancial Activitie5 in the period to which they relatr. Page 14 continued...
Royal Merth2nt Navy Education Foundation Notes to the Fin2Drial Statements - eontinued for the Year Ended 31st Aufjust 2024 DONATIONS AND LEGACIES ?0?4 ?0?3 Donations ?94 10,073 INVEME1 INCOME 20?4 ?0?3 Rents received Interest and dividend income 18??99 367.488 357,80? 540.101 549.787 RAISING FUNDS Investment management costs 20?4 ?023 Portfolio manauement Mainknance charges Rates Legal & professional Insurance Custodian Trustee ftes 149,675 7,068 ,457 14,491 3,798 546 23,519 4,51? 1.785 181,682 183,038 CHARITABLE ACTIVITIES COSTS fvnding of activities (see note Support ¢osts (see note 7) 6) Toials Grants to Foundationers 3?1,867 249.903 571,770 GRANTS PAYABLE 20?4 Grants to Foundation3 321,867 162,768 Page 15 continued...
Royal Merchant Navy Edue2tion Foundation Notes to the Finaneial Statements - tontinued for the Year Ended 31st August 2024 SUPPORT COSTS Governance ¢osts Management Finance Totals Grants to FoundationeTS 2J6,483 4,396 9.0?4 ?49.90J Support costs. included in th¢ above. are as follows: ?0?4 Granls to Foundahoners ?0?3 Total activities Wages Social security Pensions Light. heat and waler Telephone Postage and ststionery Sundries Head Office Rent Travel & subsistence Subscriptions Computer costs Website design Depreciation of tangible and heritage &qsets Bank Gharges Loss on sale of tangible fixed assets Auditors, rcmunerntion 173.119 14,??8 3.630 ?.075 ?,531 656 3.506 16.800 3,960 547 4.599 i.300 179,?50 9,448 195 2,673 ?,051 3,944 16,800 1.671 7.?90 593 6?8 3,768 9.0?4 12.576 249,903 ?53.714 TRUSTEES, REMUNERATION AND BENEFITS There were no trusr¢¢s' r¢munerntion or other benefits for the year ended 3 1st August ?024 nor for th¢ year ended 31 st August ?0?3. Trust¢e$' expenses During the year, two (2023: four) trustees were reimbursed for travel expenses iotslling £546 (?O?J: £1.785). rAFF COSTS 2024 2023 Wages and salaries Social security costs Other pension cOS 17J,119 179,250 9,448 195 3,630 190.977 188.893 ¢ontinued...
Royal Merchant Navy Education Foundation Notes to the Financial Ststements - Continued for the Year Ellded 31st August 2024 srAFF COSTS - continued The average Jnonthly number of employees during the year was as follows.. ?024 20?3 Management and administrdtion Fundraising and welfare No employees received emoluments in ex¢ess of £60,000. The total employee benefits of the key management personnel of the charity were £96,968 (?0?- ): £1?5,189). TANGIBLE FIXED ASSETS io. Computer equipment COST At I st September ?J?3 Additions Disposals 30,149 ,653 119,i80) At 31 st August 2024 DEPRECIATION At I st September 2023 Charge for year Eliminaied on disposal 16,538 1561?) At 31 st August ?024 10,458 NET BOOK VALUE At 3 1st August ?0?4 1.964 At 3 1st August ?0?3 11.611 Page 17 ontinued...
Royal Merchant Navy Educatio Foundatio Notes to the Financial Statements - tontinued for the Ye2r Ended 31st Au¢yust 2024 ii. FIXED ASSET INVESTMENTS Cash and serflements pending Listed investh]ents Totals MARKET VALUE At 1st September ?023 Additions Disposals Revaluations 16.?91.469 394.64J 16,686,11? ).800,?11 4,576,74? 8,J76,953 (4,?83,082) (4.485,574) (8,768.656) .660.??4 1,660 ??4 At 31 st August ?0?4 17.468.8?2 485811 17.954.633 NET BOOK VALUE At 31 sc August ?024 17.468.822 485.811 17.954.633 At 3 1st August ?0?3 16.?91.469 394.643 16686.11? Lnv¢stments totalling £l1,662.747 are based outside the UK (?0?3: £11,359.978). Cosz or valuation at 31rt August 2024 15 represented by: Cash and settlements pending Listed Inveseftts Totsls Valuation in 2024 17.468 8?? 485.811 17.954.6)3 12. INVESTMENT PROPERTY FAIR VALUE At I sl September ?023 and i I st August 2024 4.?00,000 NET BOOK VALUE At 31 st August 2024 4,?00.000 At i 1st August ?023 4,?00,000 Bemvood Estate was valued in the year ended 31 Au.t 20?] by Strutt and Parker, the fair vaiue was esttmated at £4,?00,000. Fair value at 31 st August ?0?4 is represented by- Valuation in 20?4 4,200.000 Pag¢ 18 continued...
Royal Merchant Navy Edueation Foundation P4otes to the Finaneial Statements- continued for the Year Ended 31st August 21Tr14 13. DEBTORS= AMOUNTS FALLINC DUE wrrHIN ONE YEAR ?0?4 Prepayments and accrued incorne 850 716 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR ?024 ?0?3 Trade creditors Social security and other taxes Grants payable Deposits received Accruals and defed income 17 4,388 j?3.J41 900 49,301 ?,585 351.930 900 48,16i i77 947 407.031 15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR ?024 20?3 Grant5 payable 315,515 J35 ?34 ?024 20?3 Brought forward Net new grant Commitments in the year Paid in the year 687,164 305.709 354.017) 853.378 178.366 344,580) Carried fonvard 6i8,856 Due: Yearended J l Auoust ?024 Yearended 31 Au¢Fu5t ?OJ? Year ended 31 August ?07 Year ended 31 August 20?7 Year ended 31 August ?0?8 Year ended 31 August ?029 351.930 940.943 77,291 11,600 5,400 3?3,341 167.876 75,856 59.056 638,856 687 164 Page 19 continued...
Roy21 Merchant Navy Education Foundation Notes to the Finanei41 Statements - tontinlled for the Year Ended 31st August 2024 16. LEASING AGREEMENTS Minimum lease payments under non-cancellable operdting leases fall due as follows". ?024 Within one year Between one and five years 16,800 16,800 18.900 18.900 35.700 17. MOVEMENT IN FUNDS Net movement in funds At At 1.9.23 Unrestricted funds General fund 90.150,793 I,j8j.?43 ?1,534,036 Restri¢¢ed funds Underhill Watson Capital Flats Tree Fund The Mission to Seafarers 904 1?,96? 904 3.?84 7.888 7.888 7.888 TOTAL FUNDS 20.168.254 1391.lil ?1,559 385 Net movement in fijnds. included in the above are as follows: Incoming sources Resources expended Gains and losses Mov¢menl in funds Unrestricted funds General fund 543.395 (741.340) 1.581,188 .383,?43 Restricted funds The Mission fo Seafarers 20.000 (1? 112) 7,888 TOTAL FUNDS 563J95 753.452) 1581,188 1.)91.131 Page ?0 continued...
Royal Merchant Navy Education Foundation Notes to the Finaneial Statements - continued for the Year Ended 31st Au¢WUSt 2024 17. MOVEMENT IN FUNDS- continucd Comparatives for movement in tsuds Net movement in funds At Unrestrieted funds Gencral fund 20.16?511 (11,718) ?0.150.793 Restricted funds Underhill Watson Capital Flats Tree Fund 311 904 311 904 17.461 17.461 TOTAL FUNDS ?0,179.97? (11.718) ?0.168,954 Compardlive net movement in funds. included in the above are as follows: IncomTng resources Resources expended Gains and losses Movement in funds Unrestrieted funds Gen¢rdl fund 560.877 (599,520) 26.9?5 (11.718) TOTAL FUNDS 560.877 599.5?0) ?6.9?5 (11.718) A current year12 months and prior year 12 months combined position is as follows: Net movement in funds At At 1.9.2? Unrestricted funds Genern] fund ?0.16?511 l.J71.5?5 21,534,036 Restricted funds Underhill Watson Capital Fiats Tree Fund The Mission to Seafarers 311 904 12,96? 904 12.96? 3,284 7.888 7,888 17.461 7.888 ?5,349 TOTAL FUNDS ?0.179,97? 1.)79.41) ?1.559.)85 P2ge?I continued...
Royal Merchant Navy Education Foundation Notes to the Financial Statements - eontinued for the Year Ended 31st August 2024 17. MOVEMENT IN FUNDS - tontinued A current year l? months and prior year 12 months combined net movement ITJ fijnds, included in the above are as follows: Incoming resources Resources expended Gains and losses Movement in funds Unrestricted fuDds General fund 1,104,2 (1,340,860) 1.608,113 1.371.5?5 Restricted funds The Mission to Seafarers ?0.000 (i? I i?) 7,888 TOTAL FUNDS 112427? I l.i52,972) 1.608.113 1.379.41) The Underhill. Watson and Capiral Flats funds represtnt funds which have been donated in memoriam for the mainrenance of the Esrate. The Tree Fund represents fim¢ls whtch have been specifically donated for trees to be planted in the Estste in memoriam. The Mission to Seafar¢rs fur represents a ornnt to be used for the education of two named foundationtr's. RELATED PARTY DISCLOSURES 18. There were no related paty transactions for the year ended 3 1st August 20?4.
Royal Merchant 2 Education Foundation Detsiled Statemtttt of Financial Artivi¢ies for tbe Year Ended 31st Auoust 2024 ?024 ?0?3 INCOME AND ENDOWMENTS Donations and legacies Donations ?3.?94 10.073 Investment ineome Rents received Int¢st and dividend income l8? ?99 357.80? 367.488 540.101 549.787 Other income Gain on sale of tangible fixed assets 1,017 To¢91 Ineoming resourc&s 56i.395 560,877 EXPENDITURE Knvestment managernent cost$ Portfolio management Maintenance charges Rates Legal & professional Insuranc¢ Custodian Truee f¢¢s 154,322 7,068 1.457 14,491 3,798 546 149,675 ,361 ?3,519 4,51? 181,68? 183,038 Charitable activities Grants to individuo]s 321,867 162,768 Support costs Manag¢ment Wages Social security Pensions Light, heat and water Telephone Postage and stationery Sundries Head oiflce Rent Trav¢1 & subsistence Subscriptions Computer costs Website desitrn Depreciation of computeT equipment 173,119 14.??8 3,630 ?.075 ?.53 I 656 3.506 16.800 3.960 547 4.599 i,300 7.53? 179,?50 9,448 195 16,800 2,856 ,671 236.48J ?40,545 This page does not fomi patt of the statutory financial statements Page ?J
Royal MerchaJAt Navy Edutation Foundation Detailed Statement of Financial A¢tivitie$ for the Year Ended 31st August 2024 ?0?4 Man20èment Finance Bank Gharoes Loss on sale of tangible fixed assets 6?8 593 4.i96 Governance costs Auditors, remuneration 9,0?4 Total resources expended 75 J.45? 599,5?0 Net expenditure before gains 2nd losses (190,0571 (38.643) Realised recognA$ed gains and losses Realised gainsl(losses) on red asset investments 79,036) (279.5?1) Net expenditure 269,093) (318.164} This page does not fomj part ofthe statutory financial statements Page ?4