Company No. 09138930 R•ghtered Charity No. 1158850 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION IA CHARITABLE COMPANY LIMITED BY GUARANTEE) STATEMENT OF ACCOUPUS FOR THE YEAR ENDED 30 JUNE 2020 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION CONTENTS Page Legal and Administratlve Information Trustees Report Independent Examiners, Report Statement of Flnanci81 Acllvilies Balance Sheet Notes to the Accounts 8-14 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION Company Numbef 09138930 Reglstered Charity Number 1158850 Charity Contact Address Cowes Castle The Parade Cowes Isle of Vvight P0317QT Patro HRH The Earl ofwessex Trustees Mr James Attrill Mr Jeremy Bennett Mr Neil McGrigor The Honourable Diana Nicholson Mrs Claire Oullon Commodore Richard Powell OBE The Honourable Ghristopher Sharples Mrs Susie Sheld,*) Colonel Carron Snagge Mr James Stevens Bankers BarGlays Bank 102 St James Square Newport Isle of Wight P030 1UP Sollcllors Blake Morgan LLP New Kings Court Tollgate. Chandlers Ford Easlleigh, Hampshire S053 3LG Independent Examiners and Accountants Moore (South) LLP g Sl Johns Place Newport Isle of Wight P030 1 LH Investmgnt Managers Sarasin & Partners CCLA Investment Service Governing Instrument Memorandum and Articles of Association dated 21 July 2014 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2020 Constitutlon The charity was incorporated on 21 July 2014, as a company limited by guarantee, and registered as a charity with the Charity Commission in England and Wales on 13 October 2014. The accounts are being made up for Ihe year ended 30 June 2020. The Foundation is governed by ils memorandum of association. In the event of an insolvent winding up Ils members are liable to contribute a sum not exceeding £1. Ob ec Iv f the Chari The objectlves of the charity are to advance the education. andlor promot8 the development of andlor relieve need in children and young adults living on or as determined by the Trustees havin9 a sufficient connection wrth the Isle of Wight by such exclusively charitable means as the Trustees think fit particularly (but not exclusively) by promoting and supporting activities and opportunities with a marine ¢onne¢lion. Trustges The Trustees who setved in the period and until the date of approval were.. Mr James Atlrill Mr Jeremy Bennett {appointed 1 October 20201 Mr Neil McGrigor Commodore Peter Melson {resigned 30 September 20201 The Honourable Diana Nicholson (appointed 1 October 20201 Mrs Claire Oulton Commodore Richard Powell OBE {appointed 1 October 2020) The Honourable Christopher Sharples Mrs Susie Sheldon Colonel Carron Snagge Mr James Stevens The Trustees are also the directors of the charitable company for company law purposes. Structure Governance and Mana ement The Foundation is managed by ils Trustees. who have met regularfy throughout the year. Trustees training and induction is made available. THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2020 (Continuèd) Achlevements and Performance The Foundation's objective is lo provide finanaal support for young people living on or having a strong connection with the Isle of Wight in order that Ihey rnay participate in education or acquire vocational skills that they cannot otherwise afford and without which they cannot develop their capabilities, competences and skills which will help their future prospects.. support is predominantly aimed towards activities with a maritime connection. Working c105ely with educational and other organisalions on the Isle of Wight, the Foundation works to encourage young people and provides largeted help to enable them to lake up training opportunities which they would not otherwise be able to access. The aim is to help them gel aC￿sS to higher educational and training standards and so gain better quality employment. predominantly in the marilime sector. During the year lo 30 June 2020 £20,794 {2019- £23,785) was committed in grants to support 9 (2019- 151 young people, The size of grant ranges from £100 to £10,000. The young people supported come from a wide range of backgrounds and have been helped in a variety of ways including payment of training fees, travel costs, equipment Costs and course fees. The Foundation ran a very successful Careers Fair in September 2a19 10 enable young people on the Isle of Wighl to discover the opporbjnilies available to them in the maritime sector. Fundraising continued at a reduced level. but the Trustees are confident that the objective of ¢reating a £2 million fund will be achieved. Futur• Plans The intention of the Charity is to hold a Careers Fair in September 2021 as planned. and lo continue to make grants to support the charitable objectives. Flnanclal Revlew The Foundation ha5 generated donalKsns received from individuals and Trusts together wrth their assoaated Gift Aid lotslling £130,89212019- £249.0501 in the yeaT. A surplus of £191,31312019 - £328,506} is carried forward in general reserves to 2021. All bursaries and grants to date have been funded out of donations specifically dedicated for expenditure in the year of gift. The accounting policy in respect of the recognition of grants committed was amended in the year to reflect the full commitment of the grants paid over the duration of the courses of study. The effect of this is shown in note 12 to the accounts. In line with the Charity's investment pollcy. funds have been placed with investment managers to generate a return and capital growth. Public Beneflt In setting our objectives and planning our annual activities the Tnjstees have given careful consideration to the Charrty Commission's general guidance on public benefit. THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2020 (Continued Rpserves Poli¢ The Foundation is a relatively new charitable organisation and is seeking lo generate funds that will help achieve the charitable objectives - specifically a £2 million reserve from which income would support grants into the future. As such. the reserves policy provides for all general donations to be transferred lo reserves and that grants paid out will be made from donations specifically for funding granls in the early years of the Charity. The Truslees will monitor reserves policy in the light of the demands for grants and financial support and also the available fundraising. Risk Mana ement The trustees have evaluated and considered the impact of identifiable risks that the Foundation faces, and have policies in place lo mitsgate these. Trustees, Responsibilities The trustees (who are also the direc'.iirs for the purposes of company lawl are Tesponsible fo." preparing the Trustees, Annual Report and the finaiicial statements in accordance with appliGable law and Uiiited Kingdom Accounting Standards (United Kingdom Generally Accepted Accounts'ng Practice). Company law requires the trustees lo prepare financial statements for each financial year, which give a true and fair view of the slate of affairs of the charitsble company and ofthe incoming resources and application of resources, including the income and expendibjre, of the charitable company for that period. In preparing these fi'nancial slatemenls, the trustees are required to.. select suitable a¢¢ounting policies and then apply them consistently., observe the methods and principles in the Charities SORP.. make judgements and estimates that are reasonable and prudent.. stale whether applicable UK AGcounting Slandard5 have been followed, subject to any material departures disclosed and explained in the financial statements," prepare the financial statements on the going concem basls unless it Is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate acCoun￿'ng records that disclose with reasonable ac¢ura¢y 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 prevenbon and detection of fraud and other irregularities_ This report was approved by the Board of Trustees and signed on its behalf.. Chair of Trustees Mrs Susie Sheldon Dated.. 19 February 2021 INDEPENDENT EXAMINERS. REPORT TO THE TRUSTEES OF THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION FOR THE YEAR ENDED 30 JUNE 2020 I report to the charity Iruslees on my examination of the accounts of the company for the year enéed 30 June 2020 which are sel out on pages 6 to 14. Re8ponsibllitie8 and ba818 of report As the Gharity trustees of the company land also ils directors for the purposes of ￿MpanY lawl you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 20061'the 2006 Acl'l. Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 2011 1.the 2011 Act'l. In carrying out my examination I have followed the Directions given by the Charity Commission under section 14515llbl of the 2011 Act. Independent examlnerfs statemont I have completed my examination. I confinm that no matters have come to my attention in connection wSth the examination giving me ¢ause lo believe that in any material respect.. accounting rgcords wer8 not kept in respect of the company as required by soclion 386 of the 2006 Act; or the accounts do not accord with those records., or the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'lrue and fair view, which is not a matter considered as part of an independent examination., or the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable lo charities preparing their accounts in accordance wilh the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021. I have no ttJnGems and have come across no other matters in connection with the examination to which attenb'on should be drawn in this report in order to enable a proper understanding of the accounts to be reached. m(yo*e ( ￿jL) LUP Kevin R Cooper BA FCA DChA For and on behalf of Moore {South) LLP Chartered Accountants 9 St John's Place Newport Isle of Wight P030 1LH Dated...LL.nw.L L.2411 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2020 Total Unre8trlcted Funds 2020 Totsl un￿strICted Funds 2019 As restated Notes INCOME Donations and legacies Grants and donations 130,892 249,050 Investment income TOTAL INCOME 175,105 283,696 EXPENDITURE ON:. Costs of raising funds 717 2.719 Charitable activities TOTAL EXpEND￿uRE 24,449 28.529 Net incoming resources for the perm 150,656 255,167 Net realised and unrealised gains on investments NET INCOME FOR THE YEAR 191,313 328.5C RECONCILIATION OF FUNDS Total funds brought forward 1,390.126 1,061,620 Tolal fund8 carrled forward 1,581N39 1,390,126 The resutts for the year derive from continuing activities, and there are no gains or losses other than those shown above. The notes on pages 8 to 14 fomi an integral part of Ihese accounts THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION BALANCE SHEET AT 30 JUNE 2020 2020 2019 As restated Notes FIXED ASSETS Investments 1486 772 1276 115 CURRENT ASSETS Debtors 5,488 976 Cash al bank in hand 11 128 394 118,601 129,370 CREDITORS: AMOUNTS FALI.ING DUE WITHIN ONE YEAR NET CURRENT ASSETS 114011 TOTAL NET ASSETS 1.581.439 1,390.126 INCOME FUNDS". Unrestricted Funds 1,581,439 1,390,126 For the financial year in questbn, the ¢ompany was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. No members have required lo company to obtain an audit of its accounts for the year in question in ac¢ordance with section 476 of the Companies Act 2006. The d1￿CtorS acknowledge their responsibility for complying with the requirements of the Act with respect to a¢¢ounting records and fof the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies, regime. Approve the TTUStees and signed on their behalf. Mrs Susie Sheldon Dated.. 19 February 2021 Company Reglstratlon Number: 09138930 The notes on pages 8 10 14 fomi an integral part of these accounts THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2020 Accounting policies 1.01 General information and Basis of accountin The Company is a registered charity under number 1158850. and is also a company limited by guarantee, registered in England and Wales. In the event of the charity being wound up. the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office. together with the objects of the Charity are given in the charity information on page 1, and Trustees Report on page 2 of these financial slatemenls. The charity constilules a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recornmended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom IFRS 1021 issued in October 2019. the Charities Act 2011. Companies Act 2006, and UK Generally Accepted Accounting Practice. The financial staiemenls are prepared on a going concern basis under the hielorical cost convention, modified to include certai ? Items at fair value. The financial statements are prepared t, I sterling, which is the functional currency of the charity and rounded to the nearest £1. The significant accounting policies applied in the preparation of these Trnancial statements are set out below. These policies are consistently applied to all years presented. unless othetwise stated. 1.02 Fund accountin Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity, and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is sel out in the notes to the financial ststements. Restricted funds are funds which are lo be used in accordance with specrfic restrictions imposed by donors or which have been raised by the charty for particular purposes. The cost of raising and administering such funds are charged against the Specif￿ fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Endowment funds represent those assets which must be held pemanenlly by the charrty. Expendable Endowments permit the Charity Its spend the capital sum on suitable capital projects with the permission of the donor. Ineome arising on the endowment funds can be used in accordance with the objects of the charity and is Ir2nsferred to the general fLJnds. Any capital gains or losses arising on the investments fom) part of the fLJnd. Investment management Charges and legal advice relating to the fund are charged against the relevant fund. The purpose and use of each expendable endowment fund is sel out in the notes lo the financial statements. 1.03 Income Rec nition All incoming resources are included in the Statement of Financial Actsvities ISOFAI when the charity is legally enlilled to the income, after any performance conditions have been mel, the amount can be measured reliably and it is probable that the income will be received. THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION NOTES TO THE ACCOUNTS {Gontinued) FOR THE YEAR ENDED 30 JUNE 2020 For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions allached lo the donation and this requires a level of performance before enlillement can be obtained then income is deferred until those conditions are fully mel or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. Donated facilities 8nd donated services are recognised in income at their fair value when their economic benefit is probable, il can be measured reliably and the charity has control over the item. Fair value is determined on the basi5 Of the value of the gift to the charity. For example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Fixed asset gifts in kind are recognised when re￿Ivable and are included at fair value. They are nol deferred oiler the life of the asset. F'.r legacies, entitlement 15 the earlier of the charity being not.ified of an impending distribution or the legacy bb>ing received. Al this point income is recognised. On occasiop, legacies will be notified to the charity however it is not possible lo measure the amount expected lo be distributed. On these occasions. the le9acy is treated as a contingent asset and disclosed. Income eamed from fundraising events to raise funds for the charity are recognised when entitlement ha$ occurred. Investment income is earned through holding assets for investment purposes such as shares, bonds and cash deposits. It includes dividends and interest. The charity uses investment managers lo manage such investments and the management costs are charged lo the funds under management. 1.04 Ex enditur All expenditure is accounted for on an accruals basis. and has been classified under headings that aggregate all costs related lo the category. Expenditure 15 recognised Whe￿ there is a legal or conslrucbve obligation lo make payments to third parties. it 15 probable that the settlement will be required, and the amount of the obligation can be measured reliably. 11 is categorised under the following headings.. Costs of raising funds includes details of the costs in relation lo fundraising events, following up donations, and seeking voluntsry contributions and donations from supporters. and available sources", Expenditure on charitable activities includes the costs of the charity's work with young people, sailing trips and other residential a¢tivrties including all planning activities, maintenance of the Charity's assets, preparation and follow up,. and Other expenditure represents those items not falling into the categories above. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. Support costs are those that assist the work of the charity, bul do not directly represent charitable activities and include administrative and govemance costs. They are Incurr￿ directly in support of expenditure on the objects of Ihg charity and include project management carried out al the Charity's main base al Cowes. Where support C051s cannot be directly allributed lo particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. **THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION** **NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2020** ## 1.05 Investments Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in 'net gains I (losses) on . investments' in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. Current asset investments are short term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year. ## 1.06 Taxation The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and 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. ## 1.07 Going Concern The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. Whilst the current difficulties relating to Covid-19 have affected the Charity's ability to meet, and operate, the Trustees are of the opinion that there is no matter affecting the Going Concern policy. The investment approach taken by the Foundation has proved adequately resilient to market fluctuations induced by Covid in the latter part of the financial year. ## 1.08 Judgements and key sources of estimation uncertainty There are no major judgements or assumptions relating to estimates that are required to be disclosed in the preparation of these financial statements. ## 1.09 Financial assets and liabilities Financial instruments are recognised in the statements of financial activities when the Charity becomes a party to the contractual provisions of the instrument. Financial instruments are initially measured at transaction price unless the arrangement constitutes a financing transaction which includes transaction costs for financial instruments not subsequently measured at fair value. Financial instruments are classified as either 'basic' or 'other' in accordance with Chapter 11 of FRS102. At the end of each reporting period, basic financial instruments are measured at amortised cost using the effective rate method. All financial instruments not classified as basic are measured at fair value at the end of the reporting period with the resulting changes recognised in income or expenditure. Where the fair value cannot be reliably measured, they are recognised at cost less impairment. Financial assets are derecognised when the contractual rights to the cash flows from assets expire, or when the Charity has transferred substantially all the risks and rewards of ownership. Financial liabilities are derecognised only once the liability has been extinguished through discharge, cancellation or expiry. 10 ## **THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION** ## **NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2020** |**2.**|**GRANTS AND DONATIONS**|**Total**|**Total**| |---|---|---|---| |||**2020**|**2019**| |||**£**|**£**| ||Donations from individuals|76,879|123,956| ||Donations from Trusts|49,500|121,750| ||Gift Aid recoverable|4,513|3,344| |||130,892|249,050| |||_======_|======| |**3.**|**COST OF RAISING FUNDS**||| |||**2020**|**2019**| |||£|£| ||**Fundraising expense:i**||| ||Literature, printing and stationery||96| ||Fundraising support costs|717|2,623| |||717|2,719| |**4.**|**DIRECT CHARITABLE EXPENDITURE**||| |||**2020**|**2019**| |||**£**|**£**| ||||**As restated**| ||**Grants**||| ||Total paid to individuals|15,614|23,785| ||Total paid to registered charities|5,180|| |||20,794|23,785| ||**Support**||| ||Grant making support costs|385|240| ||**Governance**||| ||Independent examination and accounting|2,184|1,476| ||Insurance|261|261| ||Other costs|108|48| |||23,732|25,810| |||======|-----| The purpose of grants made to and on behalf of individuals was to advance the education and development of children and young adults by promoting and supporting activities/opportunities with a marine connection. ||**2020**|**2019**| |---|---|---| |**Of the grants made:**|**£**|**£**| |Total number|9|15| |Average value|1,436|1,230| 11 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION NOTES TO THE ACCOUNTS {continuedl FOR THE YEAR ENDED 30 JUNE 2020 TRUSTEES AND STAFF EXPENSES There were no slaff members employed by the Foundation earning over £60.000. and no payments made in respect of Senior Management Personnel in eilher year. DLJring the period Trustees expenses in respect of the grants committee meetings were £38512019 £1411. No payments were made in either year on behalf of the Trustees. FIXED ASSET INVESTMENTS 2020 2019 Movement on Investments in the period was as follows.. Market value al 1 July 2019 Additions Unrealised changes in value of investments 1,276,115 170,000 952.776 250,000 Market value 30 June 2020 1,486,772 1,276,115 INVESTMENT PORTFOLIO 2020 2019 Sarasin & P8rtners'. Listed investments Other Cash and cash equivalents 627,607 73,325 572,139 23,967 1899 723,389 615,096 CCLA- COIF charity funds 76 661019 1,486,772 1,276,115 No individual holdings in the Sarasin & Partners portfolio constiluled more then 5./0 of the total investments. 12 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2020 DEBTORS 2020 2019 Investment income Gift Ald ￿coVerable 975 5,488 976 CREDITORS 2020 2019 Education grants payable Accruals 21,744 13,872 23,934 15.359 ANALYSIS OF NET ASSETS BETWEEN FUNDS 2020 2019 Unrestricted Unrestrlcted Fixed asset investments Current assets Current liabilities 1,486,772 118,601 1,276,115 129,370 1,581,439 1.390,126 10. SHARE CAPITAL The Charitsble Company 1$ Ilmited by guarantee, and has no share capital. Each of the subscribers to the memorandum agree to contribute a sum limited lo £1 in the event of a winding up of the charitable company. 11. CONTROLLING PARTY The Charity is under the control of the Trustees. 13 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION NOTES TO THE ACCOUNTS Icontinued) FOR THE YEAR ENDED 30 JUNE 2020 12. FUNDS AND PRIOR PERIOD ADJUSTMENT Total Unrestricted Funds 2020 As previously stated 1 July 2018 Prior period adjustment- grants payable 1,070, 155 As restated 1.C61.620 Year ended 30 June 2019 Income Expenditure Prior period adiiiStment- grants payable 357,035 123,1921 At 30 June 2019 1,390.126 Year ended 30 June 2020 Income Expenditure 215,762 At 30 June 2020 1,581.439 The prior period adjustment re18tes to a change in accounting policy to recognise the Charity's grant commrtments over the full duration of the beneficiaries, courses of sludy. Previously they were recorded on a paid basis. 14