Charlty reglstrntlon number 1158850 Company registration number 09138930 (Eftgland and Wales) THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr D Byatt Mr A M Charllon KC Mrs PA Kyle The Hon. D M Nicholson DL The Hon C Sharples Cok)nel Carron Snagge OBE DL Mr J Stevens Mfs M Ada MrAWatt Commander C Sillars Mr D J L F Anderson IAppoinled 1 January 2025) IAppoinled 1 January 2025) IAppointed 1 January 2025) (Appointed 1 January 2025) Charity numb•r 1158850 Company numbèr 09138930 Registered offl¢e The Casue The Parade Cthves Isle of Wght P0317QT Independent examlner Moore {Soulh) LLP g St Johns Place Newport Isle of V￿ght England P030 1 LH Bankors Uoyds Bank PIC Newp)rt 22 St Thomas Squate Nffwport Isle of WvJht P030 1SQ Patron HRH The Duke of Edinburgh Solicitors Hampshire Blake Morgan LLP New lfjngs Court Tollgale Chandlefs Ford Easlleigh Hampshi S053 3LG Investmont manage Sarasin & Partners CCLA Investment Finance THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION CONTENTS Pago Twstees. rewt lThJependent examinefs report Statement of f￿anCIal acthities Balan￿ sheet )tes to the finanrial statements 8-15 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024 The Royal Yacht Squadron Isle of Wlght Foundaliorb fthe FCMJndalir￿1 was incorporated as a company limited by guarantee on 21 Juty 2014 and registered as a charity with Ihe tharity commission in England and Wales on 13 October 2014. The Irustees present their annual report and financ4al statements for the year ended 31 December 2024. The Foundation is govemed by its memorandum of ass(Klati￿. In the event of an insolvent winding up ils members are liable lo contribute a sum not exce8ding £1. The financial statements hwrfe been prepared in accordance vrilh Ihe accounting pdictes set out in note 1 to the finan{￿al statements and compty wilh the tNsfs goveming document. the Companies Act 20￿, FRS 102 'The Financtal Rewting Standard applicable in the UK and Republic of Irelan￿ and fhe Chatities SORP "P£counling and Reporb"ng by Charities: Statement of Rec•)mmended Pra(aice applsoxble lo tharities preparing their accounts in accordance with the Finan￿al Reporiing Standard apF4tcable in the UK and Reputli¢ of Ireland (FRS 102}" Objecllves and activlties Wofking dosely with schools. the Iste of bfylght College OVL). other adu￿ edutstion establishments. employers and other youth orienlated organisalions on the Isle of Wight. the FoundatM)n's obiedive is to provide targeted. mainty financial, assistan￿ to young people, who live on or have a strong connect lo the Isle of Wghl. The aim being to help these young people gain access to higher training standards and qual1r￿tIOn$. which lead to better quality employrnent. predominatety in the maritime se(#or. and Which they w0￿d othenvise not be able to access. Pubtsc benefft In setting their objedNes and planniw their annual adivtks the Tvuslees have given careful consideiation to the ChaAty commission's general guidance on putitc benefiL Achievements and perfom¥n¢e Significant activities and achievements against obi8Ctrwes Since 2015 the Foundation tkls mad6 nèarty 200 grants (to in(fNiduals. schools. colleges & a¢ademi*). a total sum in excess of £530.0(M). During the period 1st January to 31st Decernber 2024. £46.851 (2023". £57.085) was wnmitted in grarts in support of 31 young people {2023: 33}. The size of grants ranged from £250 to £6.OW. These young people came from a wide range of backgrounds and hav8 been hew in a of ways, indudtng payment of training fees. travel C051s. equipment costs and course fees. In additi'on to individud grants. a number of colledive gwants were awarded. as ft)Ilows: £5,OW b Cowes Enterprise College in support of its awar(k winning Maritima Futurns Proie6X (for V & Vl students ). £4.C¥JO to IWC to sponsor a marine welding Course at CECAMM {Centre of Excellen￿ for Composites. Advanced Manufacturing and Marine) in Easl Cowes for 12 locally employed apprenti￿$ and £2.346 to Wght Shipyard lo establish an Tt hub for ils 22 apprentices. In September 2025 the Foundation ian a Careers. Fair at the Royal Y%hl Squadron (RYS), whi¢h altrdcted pre- registrations from 505 sludents from Isle of Wght S(*LTr)Is aThJ was attended by 41 lo¢xl employers and 5 work boals. THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Flnancial review Fundraising is suslained by the members of the RYS. In 2024 the Foundation r￿1Ved donations from individual RYS members and associated TNsts. which totalled £118,805 (2023: £48.545). A Surplus of £184.264 (2023.. £180,814), inGluding ￿￿131 gain. has been carried fO￿aId li general ￿Se￿85 to 2025. No donations constitute restricled funds. The Foundatii)n's inveslment polw is dosely supervbsed by the TNsiees' Investment Su1￿commIttee. FurKJs have been placed ￿th two investment managers to generale a reasonable dividend retum and ￿pital growt Investment policy is reviewed at routine biannual Trustee meetings. By the end of 2023 the charity had achieved its inilial tsrget of £2.Om net assets. That target was set in 2014, which tsking account of Inllation. is equivalent now lo at least £2.6m. vthith has become the Ttustees, new fundraising target. Both inveslment rnanagers maintain short le￿ cash accwnts whidy generate variable but signrfunt rates ol interest and can be accessed wilhin a f8w wothng days. This allows the Foundations. current accourt balance (which does not acuue interest) to be reduced to a level ¢xJmmensurate wilh anticipated near-tenn expendtture. R6serves pollcy The Foundation is a relativety young charitable organisation seeking to generate a18vel of assets {£2.6m) which will allow Capital growth to keep pace w5th infialion. and rfNidends and continuing regulat donations from RYS members to fund its objectNe5. The Trustees will continue to monitor reseNes policy in thè light of the demand for grants. investmenl perfomiance and donatton& Plans for fu￿re periods In 2025. Trustees will continu8 to make grants in support of the Foundation's thaiitable objectives. Trustees have set themselves a target to supwt al least 25 applicants with lotal grants up to a total value of £80k per annum and up to £20k per annum in cc41ecti¥e grants. The targets above are review￿ regularly and can be adjusted quick￿. nehvoTking receptK)n up to 2W kKal partners (volunteers. employers. schools, adult trainers. youth organisalions and local govemment representatsves) is planned for eaty October 2025. Planning is under way for a Careers. Fair inAutumn 2026. Structurei goveman¢¢ and managemvnt The Foundatlon is managed by Ms Trustees. who have met reg￿arlY throughout the year. TnJsle8s training and induction is made available. THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 The Iwstees. who ar& also the directofs for the purpose of (￿MpanY law. and who served during the year and up to the date of signature ofthe finanual ststements were: Mr D Byatt MrA M Charkon KC Mrs PA Kyle Mr N McGrigor The Hon. D M NIr*￿Is0n DL Commod0￿ R Powell OBE The Hon C Sharple$ Colonel Carron Snagge OBE DL Mr J Stevens Mrs M Adand MrAWatt Commander C Silars Mr D J L F Anderson (Resigned 31 December 2024) (Resigned 31 Dwxmber 2024} (Appointed 1 January 2025) (Appointed 1 January 2025) (Appointed 1 January 2025) (Appointed 1 January 2025) Rectuitment and apwntfflent of Iruslees Ttustees are general￿ appointed from the membership of the Royal Yad)t Squadron to serve for a perrod of 4 years. There can be excepbons tr) this, es[￿allY where a Trustee has Sp￿lalIst knowledge and experrien¢e in an area that is especialty beneficial to the overall management of the Trust. In such cases. Trustees rrAy be appointed from outside the Royal Yacht Squadron membership, andlor might seNe for a le￿ other than strictly 4 years. Decision5 on Trustee appointrnents and rotation are agreed at the biannual Trustee meetings. None of the trustees ha5 any beneficial interest in the o)mpany. All of the twstees are membws ofthe company and guarantee to CA)ntribute £1 in the event of a v￿nd1￿ up. The T￿￿teeS are also the diredors of the charitablo c(Mnpany for u)mpany law purposes. Risk Mjnagement The trustees have evaluated and considered the impact of idenlifiable iisks that the Foundalion faces. and have )licies in place to mitigate these. Trustees. Responsibilities The tnjstees (who are also the direclofS for the purposes of company law) are responthle for preparing the Trustees. Annual Report and the financial statements in accordance with applicable and United Kiigdom Accounting Standards {United Kingdom GenerallyAcceptedAc(#)untsng Practice). Company law requires the trustees to prepare financial statements ￿ each financial year. which give a true and fair view of the stsle of affairs of the charitable company of the incoming resources and application of resources, induding th8 income and expenditure. of the chariiable company for thal peri(Kl. In preparing these financ4al statements, the trustees are required to: sele¢l suilable actountw policies arKI then apply them consistenty: observe the methods and princaples in the Charities SORP,. make judgements and estimates that are reasonable and PTudenL' state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and 8xplained in the financial statements: prepare the finanoal statements on the wng concem basis unless it is inapwopriale lo presume that the d)artlable comparny will ￿)ntInue in opWat￿n. The trustees are responsible for keeping adequate a(￿0unI1ng recx)rds that disdose wilh reasonable accuracy at any time Ihe finanaal position of Ihe d)arilable (x)mpany and enable them to ensure thal the finan￿81 statements ply with the Companies Act 20C6. They are also responsitle for safeguarding the assets of the charitable company and hence fcf taking reasonable sleps for the prevention and detection of fraud and other irregularities. THE ROYAL YAcKf SQUADRON ISLE OF FOUNDATION TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR 7HE YEAR ENDEO 31 DECEalBER 2024 19 Sept￿ 21)25 THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION I report to the Itustees on rny examination of the financial slatemenls of The Royal Yacht Squadron Isle of Wght Foundation (the trust) for the year ended 31 Oecember 2024. Responsibllltles and basls ol report As the trustees of the trust {and also its directors for the purposes of company law). you are responsible for the preparation of the financial stalements in aco)rdance the requirements of the Companies Acl 2006. Hamng satisfied myself that Ihe financial statements of the Irust are not required to be audited under Part 16 of the Companies Act 2(K)6 and are eligible for independent examination. I report in respect of my examination of the trust's ffnanc4al statements carrted out under seclion 145 of the Chariltes Act 2011. In carrying my 8xamination I have followed the Diredions given by the Charity Commission under seciion 145{5)(b) ofthe Charities Ad 2011. Independent examlnerfs statement I have completed my examinalion. I confinn that no matters ha￿ o)me to my attention in cOnne(A￿Tr with th8 examination gimng me cause to believe that in any material resp*d: accounting records were not kepl in ￿SPe￿ of the tru￿ as required by seclion 386 of th8 Companies Act 20L￿. the financial statements do not accord wtth those records" the financial statements do not comFAy v￿th the aco)unting requirements of sedion 396 of the Companies Act 21x6 other than ary requirement that the financial statements give a true and fair view. which is nd a matter consKlered as part of an independent examination: or the finanoal statements have not been prepared in ac£ordance with the methods and principles of the Siatemenl of Re¢ommerKled Practice for accwnting and reporling by Chaiities app￿Cable to charities preparing their financial statements in accordance wilh the Financial Reporling Standard ap￿ICable in the UK and Republic of Ireland (FRS 102). I have concerns and have com8 ￿sS no other matters in o)nnection with the examination to whidi attention should be drawn in this rerrt*t in order to enable a proper understsnding of the fjnancial statements to be reached. ooq.1.20Z THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION STATEMENT OF FINANCIALACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024 Unrestricted Unrestricted funds funds 2024 2023 Notes Income and end¢)wments from: Donations and legacies Investments Other income 118.805 56.923 4,sn 41.095 52.711 19,475 Total Income 180,301 113.281 Expenditure on: Charitable actiirybes 91.421 67.343 Tolal expenditure 91.421 67,343 Net gain51Oosse3) on inve5trnents 11 95.384 134.876 Net Income and movement In funds 184.264 180.814 Roconciliation of funts: Fund balan￿S at 1 January 2024 2.(K)1.838 1,821,024 Fund balances at 31 December 2024 2.186.102 2,001,838 The results for the year derive from c¢)ntinuing acliviknes. and there are no gains or losses other than those shown above. THE ROYAL YActrrr SQUADRON ISLE OF WIGHT FOUNDATION BALANCE 8HEET ASAT31 DECEAIBER 2024 13 IOKI.171 I.8￿.729 Debtor5 14 146868 111444 147.488 15 ontry I41￿5￿ {11.855) 105.931 1(fj.109 Ttslal asmts t••s IlabRltk8 1186.102 l(X11.838 1186.102 IQOl.838 un￿1￿cted lunds 1186.102 t￿3.836 2.186.1(f2 2.￿1.838 2(XIO. tr the ￿Ere￿Ie￿ 31 tknrnbw2Q24. Golonol Cwr(¥b Swgge OBE DL Tn*te• THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policles Charity information The Royal Yatht Squadron Isle of Imght Foundation is a private company Iimiled by guaranlee incorFxxated in England and Wales. The registered Offi￿ 15 The Caslle. The Parade. Cowes. Isle of Wight. P0317QT. 1.1 Accounting conventlon The financtal statements have been prepwed in a(x￿an￿ wtlh Aiax>unting and Reporting by Charities: Statement of Recommended Practice applicable to chafilies preparing Iheir accounts in aCC￿rdan￿ wilh Ihe Companies Ad 20(￿. FRS 102 "The Financial Reporting Standard appli(xble in the UK and Republic of Ireland. ('FRS 10r) and the Charibes SORP 'Accounting and Reporting by Charities". Statement of ReLY)mmended Practic* applicable to charities preparing their artsunts in accordanee with thè Financial Reporting Standard applicable in the UK arKI Republic of Ireland IFRS 102}" (effedive 1 January 2019). The trust 1$ a Pub&c Benefft Enttty as defined by FRS 102. The tsust ha5 taken advantage of the provisK)ns n the SORP for chwities not to prepare a Statement of Cash Flows. The financtal statements are prepared in sterfing. which is the fjjnctional ujrrency of the trusL Monelary amounts in these financial statements are rounded lo the nearest £. The financial sialements have been prepared under Ihe hists￿¢81 cost ujnvenlion. The principal accounting pc4icies adopted are sel out below. 1.2 Golng concern At the time of approving the financial Staterr￿ls. the trustees have a reasonable expectalion that the tru51 has adequate resources to continue in operational existen(x for Ihe foreseeable fvture. Thus the trLBtees continue to adopt the going (m)n￿r￿ basis of acxounting in Preparing the financaal statements. 1.3 Charftable funds Unrestr￿ted funds are available for use at the disuetion of the trustees in furthe[arn￿ of their thaiitable objecli¥es. Designated funds comprise fijnds which have been sel aside al the discretion of the trustees for specific purposes. The p￿￿oSeS and uses of the desKJnated lunds a￿ set oul in the notes to the financial statements. Re3tric*ed funds are 3ubied to specific conditions by donor3 or grantors as to how they may be used. The wrposes and uses ofthe restricted fvnds are sel out in the notes to the fjnancial statements. Endowment fijnds represent those assets which musl be held permanenfy by the charity. Expendat4e Endovmients pennit the Charity lo spend Ihe capital sum on suitable capital projects with the perrT]ission of the donor. Income arising on the end￿ment fur¥Js can be used in accordance with the objects of the tharity and is transfe￿ed to the general fvnds. Any ¢apitsl gains or losses arising on the investments fomi part of Ihe fund. Investment management ¢harges and legal ad￿ce relating to the fund are (*arged against relevant fvnd. IA Income Income is recognised when the trust is legally enti118d to il after any p8rfomMrth conditsons have been met. the amounts can be measured relabty. and it is probable that income will be received. Legaoes a￿ recognised on receipt w otherwise rf the twsl has been notified of an impending distrijution. the amount is known. and receipl is expected. If the amount ￿ not known. the legacy is treated as a contingent THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies (Continued) Donated facilities and donaled services are recognised in income at their frdir value when their economic benefrt is probable, il can be measured ￿lIablY and the d￿rity has control over the item. Fair value is delennined on the basis of the value of the gift to the tharity. For example. the amount the charity would be willing to pay in the open market for suth laciliiies and sefViQ. A corresponding amount is recognised in expenditure. Income eamed from fundraising events to raise funds for the dwiiy are recognised when entillement has No amount is iTrguded in the financial statemenls for voknnteer lime in line with the SORP (FRS 102) Invesiment income is eamed thrO￿h hc4ding assets for u)¥ostmenl purposes suth as shares, bonds and cash deposits. It indudes dividends and interest. The tharity uses investrnent managers to manage such investments and the management (x)sts are drdrged to the funds under management 13 Expendlture All expendilure is accounted for on an accruals basis. and has been dassified under headings that aggregate all costs related to the category. Expenditure is recognised On￿ there is a legal or (x)nslru(*ve obligation to transfer economic benefft to a third party. it is probable that a transfer of e￿noMiC benefits will be required in setdemenl. and the amount of the obligation be measwed reliably. It is (aegorised under the following headings: Costs of raisiTrg funds indudes detsils of the costs in relat*)n to fundraisirKJ events, following up doiititivn5 tind vvluntary EonliibuliDns and donations ftDm 5UPPElrters. and available sour(x5", Expenditure on educath)nal granls includes the cxlmmitted grants over the duration of the benefiuaries parkncular course of study. and are provided in fijll On￿ the decision is made to support that young persons particular ￿Urse of study; and Ot￿[ expenditure feFxesents those iiems not falling irth the categories ab)ve Irrecoverable VAT is charged as an expense against the adimty for whith expeThJiture arose Support (x)sts are those that aS￿st the w(¥k of the dwity. ixrt do not direrAly represent thariLible adivities and indude administrative aThJ governan￿ costs. They are in(xxred direc*ty in supwrt of expendtlure on the obje¢Xs ofthe chaiity. 1.6 Flxed asset Investments Fixed asset investfflents are inRialy tneasured at transaclion prtce excluding transaction costs. and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net In¢omel(expenditure) for1he year. Transa(aK)n costs are expensed as Ir￿￿[red. Current asset inveslments are short tenn highly liquid investment and are held at fay value. These include cash on depostl arKI cash equivalents with a malurity of tess than one year. 1.7 Cash and cash equlvalents Cash and cash equivalents inthde c8sh in hand. deposts held at call V￿th banks. other shorktem liquid investrnents wilh original maturibes of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabi]itie& THE ROYAL YACHT SQUADRON ISLE OF WIGHT FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Accountlng pollcles {ConUnued) 1A Flnanclal Instruments The trust has elected to apply the provisions of Seclion 11 '8asic Financial Instruments. and Section 12 '0th8r Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial instrumenls a￿ rec¢yiised in the trusvs balan￿ sheet when the trust becomes party to the c￿ntraCtUal provisions of the instrumenl Financial assets and liabilities are offset. ￿ the net amounts presented in the financial stalements. when there is a legally enforceable right to set off the recognised amounts arKI there is an intention to settle on a net basis or to realise the asset and setlle Ihe liat4hty simultaneously. Bask fina￿la1 assets Basic financaal assets. whith indude debtors and cash and bank balan￿. are initialty measured at Iransadion price inctuding transaclion costs and are subsequenlly carried at amortised cost using the effective interest rnethod unless the arrangement constiiutes a financing iransacaM)n. where the transaction is measure¢J at the present value of Ihe fijture [￿lp1S dis(x)unte(l at a Ma￿et rate of interest. Financial assets dassrfied as receivable within one year are not amortised. Basic financialliabilities Basic financial liabilities, induding creditors and bank loans are inilialty recognised at IransafAK)n prrce unless the arrangement constitutes a finanung transaction. where the debt instwument is measured at the present value of the future payments dIs￿)Unted at a market rate of interesL Finanraal liabilities classified as payabl8 within year a￿ not amortised. Debt Instruments are subsequenty canied at amorfised cos( using the effedive interest rate method. Trade ueditors are obligations to pay for g(￿dS or services that have been acquired in the ordinay course of operations from suppliers. Amounts payable are dassffied as ￿rrent liabilities rf paymenl is due wrthin one year or less. If noc they are presented as norFcurrent liabilib'es. Trade creditors are reo)gnised initially at transaclion price and subsequenlly measured al amortised cosl using the effective interest methlxl. Derecognltlon of financlal Ilabllllles Financial liabiltknes are derecognised when the Irusys contraclual obligations expire or are discharged or Can￿lled. 1.9 Taxation The tharity is an exempt charity wtthin the meaning of schedul8 3 of the ChaTibes Acl 2011 and is t)Jnsidered lo pass the tests set out in Paragraph 1 Schedule 6 Finan￿ Act 2010 and therefore it meets Ihe deffflition of a charitable company fcK UK corwration tax purposes. Crltlcal accountlng estlmates and Judgements In the application of the tsusfs accounting policjes. the truslees are required to make judgements, estimates and a5sumpticrf)s about the Cal￿ng amount of assets and liabilities Ihat are not readity apparent from other sources. The estimates and asswated assumpttons are based on historiral experience and other factors that are conSide￿d to be ￿levant Actual resufts may dtffer from these eslimates. The estimates arKI underlying assvmpttons a￿ ￿4ryewed M an ongoing basis. RevisTron5 lo accounting estimates are recognised in the period in which the estimate is revised where the revision affects