CHARITY XEGISTERED NUMBER: 1158286 IATIONAL SPITFIRE FROJECT YRUSTEES I REPORT AND F114ANCIAL STATEMBNTS FOR THE YEAR ENDED 31ST OCTOBBR 2023 JANE FEREDAY LTD CXARTERBD CERTIFIED ACCOUNTANTS NURSERY COTTAGE BECKLEY HINTON CHRISTCHURCH DORSET BH23 7ED
NATIONAL SPITFIRE PRO0CT EGAL ATr]D ADMINISTEATIVE INFORMATION R•glJtered Charlty Number: 1158286 Chalrman: John Hannides Treasut•r i Mlchael Richard James Trusteeg: John Hanttides (Chairman) amie Barrett Paul Beaver Grant Flarrison Paul Lester Royston Smith Geoffrey Walker (resigned 31 March 20231 Michael James (appointed 30 March 20231 RegL8ter•d O£f Ice: 18 Bassett Wood Drive SoUTHMpTON S016 3FT Accountants: Jane Fereday Ltd Chartered Certif led Accountants Nursery Coltage Beckley Hinton Christchurch Dorset BH23 7ED Bank•r8 1 National Westminster Bank PIC 68 Above Bar Street Southatnpton S014 2DS
IIATIQ14AL SPITFXRE PROJECT FOR THE YEAR ENDED 318T OCTOBER 2023 COIITENTS Pagè Tru8Lee8 report Independent Examiner, s Report Statement of f inancial actlVLties etailed analysis of £und5 Balance sheet Notes io
NATIONAL SPITFIRE PROJECT TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2023 The Trustees present their report and the fin8nci81 statements of the charity for the year ended 31 st October 2023. The trustees have adopted the provisions of the Statement of Recommended Practice ISORPI "Accounting and Reporting by Charities" IFRS1021 in preparing the annual report and financial statements of the charity. Structure. Governance and Management Organisation The charity was set up in accordance with the Charity Commission's advice and guidance. The National Spitfir8 Project was incorporated as a Charitable Incorporated Organisation ICIOI on the 19th August 2014, and prepared its ninth set of accounts for the year ended 31 st October 2023. As set out in the Constitution, nominated trustees must be approved by a formal board meeting. Appointed trustees must stand lor re-election every 3 years. From year 3. one third of the trustees will resign each year at the AGM of the charity Ib8sed on a rota-systeml but can stand again for re-election at the same meeting. When looking for new trustees to nominate, the trustee board undertakes a skills audit lo highlight the areas desired by the charity and those currently lacking or under-represented. Related parties None of the trustees has any beneficial interest in the charity. All of the truste8s are members of the charity but have no liability to contribute to its assets and no personal responsibility for settling its debts oi liabilities. There were no related party transactions during the year under review in the8e accounts. Risk policy Whilstthe £500.000 committed from HM Government provided a high degree offinancial confidence, the risk rem8ins that it additional n8w donations are not received, the Grant would not be sufficient to cover the cost of the detailed design, technical and feasibility work. This could, therefore, Cause the project to stall or be delayed. This is mitigated by the appointment of an experienced professional fundraiser and the appointment of a very highly regarded and well-connected Trustee as the Chair ofthe Development Committee. The prospect of failing to attract new donations is further mitigated by the Commencement of the Detailed Technical Design work during this period, this has the important effect of 'de- risking, tho project and. therefore, making it more attractive for prospective donors. The risk of high inflation impacting the cost of the materials and Labour required to construct the monument, could potentially raise the total cost envelope of the project. This is mitigated by the significant contingency provision already included in the cost estimates and the excellent work being done by the Project Director and appointed Quantity Surveyors in identifying options to reduce costs and remain within budget. Page 1
NATIONAL SPITFIRE PROJECT TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2023 Objectives and activities The objectives for which the charity is established are to advance the educarion of the public in the history of the design and development of the Spitfire aircraft and its role in the Second World War including, but without limitation, the erection and malntenance of a memorial to the Spitfire and it8 designer R J Mitchell in the City ol Southampton. Achievements and performance The Natlonal Spitfire Monument Is a standalone construGtion and It can be built separate to the works required for any futur& Waterfront development and, subject to funding, will proceed independently. SCC and NSP are in discussion regarding the lease for the approved site. Preparatory work continued to ensure the National Spitfire Project {NSPI is in a good position to achi8V8 tangible progress. This included sev8ral surveys leg Ground Investigation IGII survey}. Further endorsement end supportfrom Southampton City Councilwas illustrated bythe receipt of two grant instalments totalling £37.700, which helped with the project delivery 8nd fundraising. Furthermore, followingthe successful award for £3,000,000 from HM Government as match funding, Trustees tookthe decision to ask HM Treasury to convert £500,000 of our funding into a grant in o¥d8r to complet8 the design work and further enhance our appeal to prospective donors. The request was approved, which reinforced HM Government, confidence in the project and underlined its Yecognition of the Monument representing the officially r8cognised national monument. The balance of £2 500,000 of HM GovernmentfLSndingwas released to the Armed Forces Covenant Fund Trust IAFCFTI and NSP worked with AFCFTto define and agree a suitable reporting system. NSP has benefitted from a significant increase in activity across the board, including the appointment of International Fundraising Consultancy IIFCI as the professional fundraising organisation providing specialist support. Flnancial review The income from donations recorded forthe financialyearended 31 October 2023 was 2291 lin 2022 it was £2,610). The charity also received grant funding of £32,50012022'. £75,200) from Southampton City Council. During the year thè charity furlher received the f irst tranche of funding from the Armed Forces Covenant Fund Trust IAFCFTI, as committed to by HM Government as part ol matched funding to total £3,000,000. This first tranch8 received amounted to £500,000. Page 2
NATIONAL SPITFIRE PROJECT TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2023 The total income ofthe charity In the year ended 31 October 2023 was £532,791 12022.. £78,210). The total expenditure incurred of £101,331 12022: £58,157) was primarily for Project Managem8nt- £37,04012022'. £30,131), Project Design (initlal payment) £20,00012022.' £Nill, Fundraising- £36,535 (2022: £19,404), Marketing services and website maintenance - £5,39212022,. £6,445). Going Concern Review The Trustees have carried out a Going Concern Review. The review includes looking at NSP'S financial position. cash flow, and liquidity. Each of these is assessed in order to reach a conclusion. Review and observations- The Trustees believe that the project is 3 going concern, especially with match fur)ding from HM Government and the positive responseto NSP'S CapitalAppeal 8nd other fund raising activÉty. With the plans for the spectacular Spitfire monument in place and the continued support of the HM Government, Southampton City Council 8nd the numerous Corporate and individual donors pledged to donate to the project, the Trustees are optimistic that their vision will be realised. Reserves poll¢y The Trustees aim to maintain free reserveg in unrestricted funds at a lev81 which equates to a minimum of approximately three months of unrestricted charitable expenditure. The Trustees consider that this level will provide suff icient funds to ensure that support and governance costs are covered. The balance held as unrestricted funds gt 31 October 2023 was £1,537 12022: £2,431). Duringthe year 8nded 31 October 2023 incometo unrestrlcted funds was £291 12022: £3,010} and unrestricted charitable expenditure was £1.18512022: £1,493). The charity received restricted grant funding during the year ended 31 October 2023 of £500,000 from the Armed Forces Covenant Fund Trust IAFCFTI. The Trustees ofthe charity have worked with the AFCFTto define and agree a suitable reporting system. The charity also received restricted grant funding during the year ended 31 October 2023 of £32.500 from Southampton City Council. The Trustees meet regularly with representatives of Southampton City Councilto report on how the funds have been used. The balance held as restricted funds at 31 October 2023 was £450,89012022.' £18.5361. During theyear ended 31 October 2023 income to restricted funds was £532,50012022: £75,200) and restricted fund expenditure was £63.85412022: £56,664). Page 3
NATIONAL SPITFIRE PROJECT TRUSTEES. ANNUAL REPORT FOR TrIE YEAR ENDED 31ST OCTOBER 2023 Funds held as Custodian Trustee The charity does not have any custodian trustee arrangements. Plans forfuture periods The Trustees of Ihe National Spitfire Project (NSPI are in the process of selecting specialist consultants for the project to be appointed during the f inancial year 23124.The f inal selection interviews are scheduled in London on 2nd November 2023. The expectation is to appoint the various design te8m members and proceed with the detailed technical and design work, Includingwind tunnel testing of our model sculpture. Proactive fund raising activity will intensify and a cultivation event for prosp8Ctive supporters is scheduled to take place at Number 10 Downing street in November 2023, hosted bythe Prime Minister, Rishi Sunak. This event provldes the catalyst to launch NSP'S Capital Appeal, Accountingand reporting responslbilities Th8 charity trustees are responsible for preparing a truste8s' annual report and financial statements in accordance Wlth applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. The law 8pplicable to charities in England and Wa16s requires the charity truste6S to prepare financial statements for each year which give a true and fair view of the State of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements. the trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles In the applicable Charities SORP- makejudgements and estimates that8re reasonable and prLfdent' stat8 whether applicable accounting standards hava been followed, subject to any material departures that must be disclosed and explained in the financial statements., prepare the financial st8tements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at anytime the financial position of the charity and to enable them to ensure that the financial statements Comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are Page 4
NATIONAL SPITFIRE PROJECT TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2023 also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of f raud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website in accordance with legislation in the United Kingdom. Approved bythe trustees on J Hannid6S Trustee Page 5
INDEPENDENT EXAMINER I S REPORT TQ THE TRUSTEES OF NATIONAL SPITFIRE PROJECT FOR THE YEAR EI4DED 31ST OCTOBER 2023 I report to the charity trustees on my examination of the accounts 0£ the charity for the year ended 31st October 2023 which are set out on pages 7 to Is. Reaponslbllltles and basia 0£ r8port As the charity trustees you are re$pon6ible for the preparation of the account5 in accordance with the requirements of the CharitLes Act 2011 1 I the Act, I I report in respect of my examination of the eharily, s accounts carried out under section 145 of the Act and in carrying out my examination I have followed alL the applicable Directions given by the Charity CotnmLssion under section 145 151 Ibl of Lhe Act. Independent examlner, o Statern•At I have completed my examination. I eonfirm that no matters have come to my attention in connection wiLh the examination giving me cause to believe: 11 accounting records, with respect to the Trust, were not kept as requlred by sectxon 130 of the 2011 Act.. or 21 the accounts do fLOt accord with those records,. or 31 Lhe accounts do not conrply with Ihe applicable requirernents concerning the fonn and CODtent 0£ accounts set out in the Charities IAccounts and Reports) Regulations 2008 other than any requirement that Ihe accounts give a 'true and fair view, which Is not a ma¢ter considered as part of an independent examination,. or 41 the accounts have not been prepared in accordance with the Tnethods and principles of the Statement of Recomtnended practice for accounting artd reporting by charities lapplicable to charities prepar&ng their accounts in accordance with tkLe Financial Reporting Standard applicable In the UK and Republic of Ireland IFRS 10211 Dated: 31,, A C ioZ4 Ja Fer yLtd Chartered Certif led Accountants Nursery Cottage Beckley Hinton Christchurch Dorset BH23 7ED Page 6
14AT1014AL SPITFIRE PRO4JECT STATEME14T OF FIYWqCXAL ACTIVITIES IINCLUDXNG INCOME AND EXPEIIDITURE ACCQUNTI FOR THE YEAR ENDED 31ST OCTOBER 2023 Re#tld Incomè Funds Total Fund9 2023 Total Fund3 2022 Unr•#t i a Fwids Income and endowmoJ¢¥ ftomi Donations and Legaeles 291 532, 500 532, 791 77,810 other incorne 400 Total Income and •ndoMryDents 291 532,500 532, 791 78,2LO Exp•nd&tur8 on: Raising funds 243 36,292 36,535 19,404 Charitable aetivitie8 242 63,854 64,096 38,253 other 700 Yoo 500 Total ra8ourc•M expend•d 1,185 100,146 101,331 58,157 Net rnovement In funds 18941 432,354 431,460 20,053 Total £und8 brought forward 2,431 £ 18,536 £ 20.967 914 Total £und8 carrled forward 1,537 £450,890 £452,427 £ 20,967 All income and expenditure derive from continuing activities. Page 7
NATIONAL SPJTFIRE PROJECT STATEMENT OF FINANCIAL ACTIVITIES DArLED ANALYSIS OF MOVEMENTS IN FUNDS FOR THE YEAR ENDED 31ST OCTOBER 2023 2023 2022 General Futtd (Def icitl Isurplus for the yea 18941 1,517 18941 1,517 Urttéatrtcted fund I Opening balan¢e 2,431 914 2.431 914 Restrlet•d Funds OpeniAg Balance Grant Income Costs 0£ generating funds Activitles furtherance OE obje 18,536 532,500 136,2921 163,8541 75,200 119,3291 137,3351 450,890 18,536 Total funda at 31st O¢tob•r 2023 £452,427 £ 20,967 Page 8
NAT1014AL SPITYIRE PROJECT BAANCE SHEET AT 31ST OCTOBER 2023 Note 2023 2022 Current as#¢t8 Debtors Bank Accounts 5,699 471,264 633 24.832 476,963 25.46S Credltor8 Amounts falling due within one year 24,536 4,498 Net current a888tB 452,427 20,967 Total aB88t8 1•88 current Ilabllltles 452,427 20,967 Nee a8¥at# £452,427 £ 20,967 Capltal fund Restricted funds Unrestricted f unds 450.890 1,537 18,536 2.431 Total £uJxd8 £452,427 £ 20,967 Approved by the trustees on 3i&k f¥¥1 aDILfr ' a Hannides The anttexed notes form part of these f inancial statements. Page 9
NATIONAL SPITFIRE PROJECT NOTES TO THX FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 Aceountlng polle*ea The organi8ation is a registered charity. The accounts I f Inancial statements) have been prepared under the historical convention and in accordance with Statement of Recommended Practice cost cortvention with items reeognised at cost or transaction value unless otherwise stated ihe relevant notes to these accounts. The finarLcial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in he UK and Republic of Ireland IFRS 1021 issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdorn and Republic of Ireland IFRS 1021 and the Charities Act 2011. The particular policies adDPted by the Trustees are described below and have been applied consistently to alL periods presented in these f inanclal Étatemenls. Crltical accounting judgemenl8 and key 90urces of e8tinHtion uncertainty In the application 0£ the charity, s accounting policies, the trustees are required to make judgements. estimates and assumptions about the carrying arnounts of assets and liabilities that are not readily apparent fro other Bources. The estimates arkd associated assumptions are based on experience and other factors considered to be relevarLt. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estitnate is revised If the revksion affects only that period, ot in the period of the revision arLd future perioda if the revision affect5 both current and future periods. The trustees do not consider there are any critical judgement8 or sources of es¢imation uncertaiKkty requiring disclosure beyond the accounting policies listed below. Incomlng tèsourceB Donation income is recognised in the year in which the charity is entitled to receipt, and when the amount can be recognised with reasonable certainty. Glft in kind income and expenditure is recognized when the service is received. Fage 10
NATIONAL SPITFIRE PROJECT NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR EDIDED 31ST OCTOBER 2023 Re8oure¢s expended Resources expended are included in the statem8nt of finattclal activities on an accruals basis, exclusive 0£ VAT which can be recovered. The costs of generatlng funds consist Tnainly of the costs of utilislng the services of a professional fundraiser, and the costs of utilitisirlg the Juat Giving donations platf orin. Costs of charitable actlVLties include grants nHde, governanee cost8 aud Bupport cc>sta as explained in note LO. Fund accountlng Funds held by the charity are divided between unrestricted and restricted general funds. The urLrestricted funds can be used, in accordance with charit3ble objectives, at the discretions 0£ the trusteÈs. The restricted funds must be used in accordance with the wlshes 0£ the donor. Grant# receivèd Grants are recognised once the charity has entltlement to the income, it is probable that the income will be reeexved and the amount ot income receivable can be measured reliably. Page 11
NATIONAL SPITFIRE PROJEC NQfES TO TH£ FINANCIAL STATEMKWTS Icontinuedl FOR YEAR ENDED 31ST OCTOBER 2023 Going Concern The existing fund5 of the charity togelher with funds that have been pledged, are suf ficient sueh that the Charity can toeet its expeiises as they fall due. Therefore the finantial statetnents have been prepaied on a going eoncen basis. A review of Going Concern was carried out by the Trustees looking ahead beyond 31 October 2024. The following observations have been noted by the Trustees as a result of their revlew.. Financial Position The Charity's Éinancial position in relation to budget and planned comunitments Is pioviding coTrfort and assurance that adequate funds are available. With apptoximately £500, 000 cash balance duting the 2022123 financial year, and over £200,000 as at Auqu5t 2024. the Charity is in a healthy financial position. Significant additional donations have also been pledged, which, together with the tnatch funding contributions will add considerably to NSP'S ea5h balances. Cash Flow Reviewing cash flow I'orecasts and assurnptions about future activities such as incoThe generation, cash receioLs. and cash eosts, provides a very high degree of comfort that available cash balances will remain siynifTrcantly above on-going costs for the foreseeable future. Liquidity Current and future cash balances indicate a high and sustainable level of liquidity whleh will be suffleient to meet the Charity's liabiliti*s on time. Review and observations la150 reported in thÈ Trjstees, Report) The Trustees believe that Lhe project is a going COAtotn, especially with match funding from HM Government and the positive response to the charity's Capital Appeal and othèr furid raising activity. With rhp plaTl£ Cnr thp sppctarijlar .qpitfire monument in plaep Aiid the continued support OC the HM GovernmenL, and the numerous corporate and individual donors pledged to donate to the project, the Trustees are optimistic that their vision will be realised. Cash and ca¥h equival6nt8 Cash and cash equivalents cornprise8 cash in hand and dÈposits repayable on deTnand. Taxation The charity 13 a registèrèd charlty and has no liability to corporation tax on its chari table activities. Contlngent Assèt A contingent asset Is recogni5ed and disclosed for grant funding that: ar15es from past evènts and.. wa5 not forrnally tOTnThitted lo writing at 31 October 2022. Page 12
14ATIONAL SPITFIRE PROJECT NOTES TO THE FINANCIAL STATZMENTS (Continued) FOR THE YEAR ENDED 31ST OCTOBER 2023 Xncom• Re8tld Income Unr84tld Fund 2023 Total Fund6 2023 Total Fund8 Fund¥ 2023 2022 DonatlonB and l¢gacle8 Dottations, legaeies and similar Grant Income 291 291 532, 500 2,610 75.200 532, 500 291 532, 500 532,791 77,810 other Incorne Compensation f rom bank 400 400 Exp8ndltut• on ral8ing fund 2023 2023 2022 Fundraising Costs of generating funds 243 36,292 75 19,329 36,535 19,404 Exp•ndlture on charltable aceivit£es 2023 2023 2022 Marketing IT Software & consmableS ActlVLtie8 in furtherance of objects 78 164 63,854 918 37,335 64,096 38,253 other cost8 2023 2023 2022 Accounts Independent Exarninatlon 700 500 700 500 Page 13
14ATIONAL SPITFIRK PROJECT NOTES TO THE FINANCIAL STATEblE9 (Continued) FOR THE YEAR ENDED 31ST OCTOBER 2023 D•btorJ and prepayments AmouzLts Ealling due within one year: 2023 2022 prepayments and Accrued Income Taxation 195 5,504 195 438 £5,699 633 Credltor8 Amounts faLLing due within one year: 2023 2022 Sundry Creditors Accrued Expenses 20,730 3.806 3,998 500 £24, 536 £ 4,498 Flnanelal IrA8trument8 The company had the following Einancial Instruments: 2023 2022 Financial assets that are debt instrumeThts easured at amortised cost other debtors 5,699 633 Financial liabilities measured at amortised cost Other creditors 24,536 4,498 £24. 536 £ 4,498 Rèlatèd party trarLsactlons DurirLq the year, the charity did not take part itt any related party ransactions. Page 14
NATIONAS SPITFIRE PROOECY NOTES TO THE FINANCIAL STAYEMENTS Icontinuedl FOR THE YEAR ENDED 31gT OCTOBER 2023 10. knalysats Qf Juppott cose8 The 8UPPOft costs of the charity have been allocatod to charitable expenditure as disclosed in Note 4. Thls was deemed to be the most appropriate by the Trustees. ThiB will be reviewed in future years. 11. Tru8teeB The Trustees of the Charity complete their role as a Trustee without remulleration. The charity reimbursed Trustee£ £DTil during the year 12021: £Nill for expenses Incurred on behalf of the charity. 12. Employee# There were no eThployees during the year. 13 . Cothmitm¢Dta At 31 October 2022 the charity has no annual commitrnents. 14 . Contlng•nt Asa¢t The Govezntllent announced in the April Budget 2020, it has allocated match funding up to £3 million for the project, thanks to the support 0£ the SouthaTllPton Itchen MP. In March 2023, the Government conE2rmed it will convert part of the fflatch-funding allocation in to a grant of £500,000. the £500, 000 governTneTht grant will be paid to the Natlonal Spitfire Project one single payment, to be adminislered through the ArEned Forces Covenant Txus¢ Fund IAFCTFI. The AFCTF has confirmed they have completed their required procedures and approvals, and soon as they receive the funds from His Majesty's TrÈasttry IHMTI they will release it to the National Spitfire Project. rhey axe currently in direct communication with HMT to expedite the transf er of funds. Southampton City Council initially allocated £150, 000 reverLUa funding to the project, of which £75,200 was paid to the chatity during the year under review. Southampton City Council has also alLocated £350, 000 capital funding as a contribution to the con8Lruetion phase of the project. Page 15