**REGISTERED COMPANY NUMBER: 09250869 (England and Wales) REGISTERED CHARITY NUMBER: 1159265** **REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021 FOR THE FALKLANDS MARITIME HERITAGE TRUST** **THE FALKLANDS MARITIME HERITAGE TRUST** **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** ||Page| |---|---| |Reference and Administrative Details|1| |Report of the Trustees|2 to 4| |Independent Auditor’ Report to the Trustees|5 to 7| |Statement of Financial Activities|8| |Balance Sheet|9| |Statement of Cash Flow|10| |Notes to financial statements|11 to 16| **THE FALKLANDS MARITIME HERITAGE TRUST** **REFERENCE AND ADMINISTRATIVE DETAILS** **Registered Company number** 09250869 (England and Wales) **Registered Charity number** 1159265 ## **Registered office** One Bartholomew Close London EC1A 7BL **Trustees** M M J Bound W P Featherstone D A Lamont S G R Pitaluga (appointed 5 January 2021) R H B Holme (resigned 19 February 2021) ## **Independent Auditor** Azets Audit Services Chartered Accountants 2nd Floor, Regis House 45 King William Street London EC4R 9AN ## **Solicitors** BDB Pitmans LLP One Bartholomew Close London EC1A 7BL **Bankers** CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Page 1 ## **THE FALKLANDS MARITIME HERITAGE TRUST** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2021** The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 October 2021. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) published on 16th July 2014 (as amended by Updated Bulletin 1 published on 2nd February 20 16). The founding Trustees were David Ainslie, Mensun Bound, William Featherstone and Donald Lamont. Advised by Stone King LLP, Solicitors, they adopted a Memorandum containing Articles of Association for the Company Limited by Guarantee on 6th October 2014. Alan Huckle was appointed a Trustee on the 8th January 2015 and resigned 31st December 2018. The company was incorporated and registered at Companies House on 6th October 2014, and subsequently registered with the Charity Commission on 18th November 2014. ## **INCORPORATION** The charitable company was incorporated on 6th October 2014. ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims for the public benefit** The Trust aims to advance the education of the public, including in the maritime history and heritage, both military and civilian, of the Falkland Islands and their neighbouring seas, and the improvement of public understanding of their historical and social significance; in particular but without limitation through research and exploration of the said seas; and to record, preserve and restore (if considered appropriate) craft, materials and information of historical significance and educative value relating to the Falkland Islands and their neighbouring seas, including naval and civilian vessels and related equipment, items and records and by the acquisition, restoration and maintenance of the same for public display, demonstration or exhibition at the Falkland Islands Museum and the Jane Cameron National Archives of the Falkland Islands or other suitable i nstitutions open to the public. ## **Grant making** At this stage the trust does not consider itself to be a grant making organisation. ## **ACHIEVEMENT AND PERFORMANCE** ## **Charitable activities** The Trust maintains a website that contains stories of the maritime history of the Falkland Islands and South Georgia. The documentary made of the finding of SMS Scharnhorst in 2019 continues to be shown on the Smithsonian Channel. Throughout the period covered by this Return the Trust was heavily engaged in planning for the expedition whose objectives were 1) to locate, survey and film the wreck of Sir Ernest Shackleton’s ship Endurance; 2) to bring the story of Shackleton t o a new generation through a major international education and outreach campaign; and 3) to investigate and study the remote western Weddell Sea ecosystem. Trustees appointed Dr John Shears to be Expedition Leader. They concluded a charter contract with African Marine Solutions (AMSOL) for SA Agulhas II, given its success as the platform for the Weddell Sea Expedition of 2019. Ocean Infinity would be lead contractor for the subsea element, using SAAB Sabertooth hybrid underwater vehicles. Key partners for the Education/Outreach programme were Reach the World and the Royal Geographical Society. After reviewing other candidates, Trustees selected Little Dot Studios/History Hit, fronted by TV presenter Dan Snow, to be responsible for social media output in various forms and a long-form documentary. The scientific component of the expedition was more limited than had been the case for the Weddell Sea Expedition, given the reduced period in which SA Agulhas II was available. The Trust appointed Dr Lasse Rabenstein of the German research company Drift & Noise as Chief Scientist. With an emphasis on weather and sea ice science, his team included scientists from Germany, Finland and South Africa. Substantial effort was devoted to the development of plans for deploying the Sabertooths from ice camps if conditions did not allow the ship to reach the presumed location of the wreck. These plans required the use of two helicopters (one being for heavy lift) as well as specially designed and constructed equipment to allow drilling on an ice floe and then lowering and retrieving the Sabertooths. Page 2 **THE FALKLANDS MARITIME HERITAGE TRUST** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 OCTOBER 2021** ## **Charitable activities** _**(continued)**_ The pressures of preparing for the Endurance22 Expedition unfortunately prevented the Trust from making progress with plans to take advantage in time for the 40th Anniversary of the Falklands War of material we acquired for the descendants of Hugh Scully, the television journalist. His interviews with key participants in that conflict and in particular with Prime Ministe r Margaret Thatcher remain a unique and valuable historical archive. ## On 5 March 2022 the Expedition (“Endurance22”) succeeded in locating the wreck. ## **FINANCIAL REVIEW** ## **Trustees' investment powers** Although the Articles and Constitution of the trust permit it to exercise powers to make investment, at this time the business of the trust does not require it to exercise those powers. ## **Reserves policy** As a project based organisation it is not the intention to maintain any distinct reserves or seek endowment funds. There remain sufficient funds to cover foreseeable expenses pending identification of a new project, but do not justify investment advice at this stage. As it moves forward, it is the Trust's intention to review its investment and reserves policies regularly and to implement risk management and other policies as projects are identified. Funds given to the trust for each project will be placed on deposit and depleted during the project life. ## **FUTURE PLANS** The discovery of Endurance on 5 March 2022 triggered a wave of international interest and presents the Trust with exciting opportunities and significant challenges. NatGeo have engaged in producing a major documentary. Little Dot/History Hit, with Reach the World and the Royal Geographical Society, have made a series of five short documentaries for educational use. In presentations to a variety of audiences, members of the Expedition are able to further the Trust’s Objects by their accounts of the search and the story of Shackleton’s original expedition. We shall be marketing a series of educational documentaries for school use. We expect that there will be books, exhibitions and digital products made possible or more attractive by the use of the data gathered by the Sabertooths, once the data have been suitably processed. With the tenth anniversary of Margaret Thatcher’s death approaching in Autumn 2023, we shall look for opportunities to deploy in an appropriate form the archive of interview material we have acquired. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. ## **Recruitment and appointment of new Trustees** As the Trust expands its operations it will seek to augment the trustee body by recruiting those with specific skills and knowledge which are germane to the trust and the new opportunities presented by discovery of the wreck. ## **Induction and training of new Trustees** As and when new Trustees are to be approached and selected they would be issued with all relevant documentation - company and charity registration documents, minutes and accounts for up to the preceding three years, reports and/or digital accounts of past projects, and any policy statements agreed by the Trustees and current - following which the invitee would have the time they required to ask questions, and seek clarification from the existing Trustees Page 3 ThE FALKLANDS MARrnIAE HER￿AGE TRUST REPORT OF THE TRUSTEES FOR ThEY£AR EfrIDE031 OCTO8ER2021 STATEMENT OF TRUSTEES RESPONSIBILmes The Tru5t•e6 (who are also Ihe directors ol The Falkjands Man*"m• H•rfag• Trust for the purpo$88 ol Company lawl Tesponsiblelorpreparngthe Reportrjfthe Tru*esandtslefin8TrU8lstslemertsin accordancewikn app￿taNt lawandUThknd King¢Jom Accounbng Stsndardslunited bfjngd0mGen¢rallyA￿pts￿AcCounI'nq Praclcel. Company law r¢quireslhe Tnjstees to preparefinantiAI slatsmentsfore8ch finanaal ygBrwhi¢h qiv• a true and fairview of the ststè of8ffairsofthe¢haritable comparty and ofthe incomng resourcdsondèppltstonof resourc9$, in¢ludn9the rKorne •n¢J expendityre, oflh• t*8ntabl•¢ompanyforthatperiod. In pr•pwin9those financial statem￿ts,1￿• Trustees ar• r8quw?d lectsuitsbl• a¢¢ounling poli(?•••ndlhen •pplythom ￿n*S￿nIy., observa the melhodsand pnncipltsin the Charity SORP". make jud9•mertsand esbmat•sthat ar• reasonable and prud•nt prepare the financial statern¢ntson the going concern b•ws UTr1￿ itl8 in•ppropn•t•to pr•sum• thalthe charit(t4e companywill confrnye In buwn• The Trust••s ar• responwblefor keepingprop•raccounts"ng r•eordswhith disclo$¢wilh r••son8tle accumcyatanylrnethe financial posibon ol the chantsbl¢ ¢ornp•ny and to enable them to •nsure th•t th• finan¢ial stst•m¢nts c¢mply with ihe Ccmpani•sAct2006. Th•y are also r¢sponwbl•forsaf¢gu•rdin9th• assets ol the ch•ntsbl• comp4ny¥nd h•n¢¢lor t•kry reasonabl• st8p$forthe preventon •nd det•¢bon of Iraud*nd other irye9ul•ril•$. In so tar •8th• Iru8ts•s •r• aw•r•'. th•r• l• nor•l•vantAvditinlormotson olwhich th•¢h•ntys •uth"torn •r•un•w*r•". #n¢J tho trust••5 h8ve tok•n 811 steps Ihat Ihey ought to have tak•n to mak• Ih•msglvgJ •w4re of •ny r•l•v•nt audt informabon andto •$tsblith Ihat th• aydslori• aw•r• of th•tinlom•ts'on. This report has b••n pr•p•red In ac¢of¢J4nc• the Pro￿￿onI ol Part I S olth• Comp•nies Act2006 rel•tiftg to •mall compani•6. Approv•d by orderoltr*• bo•rd olTrts8t••s on 4nd•i9n•d on its behalf by". A Larnon¢- rusts• Pag*4 ## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE FALKLANDS MARITIME HERITAGE TRUST** ## **Opinion** We have audited the financial statements of Falklands Maritime Heritage Truste (the ‘charitable company’) for the year ended 31 October 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United King dom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 October 2021, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financ statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfi lled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financ ial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern f or a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees' report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report has been prepared in accordance with applicable legal requirements. Page 5 ## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE FALKLANDS MARITIME HERITAGE TRUST** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from - • branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - th e trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime - • and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. ## **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitab le company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continu e as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below: - Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; - Reviewing minutes of meetings of those charged with governance; - Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; - Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report. Page 6 ## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE FALKLANDS MARITIME HERITAGE TRUST** ## **Use of our report** This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of th e Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we d o not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. ## **John Howard FCA (Senior Statutory Auditor)** For and on behalf of Azets Audit Services Chartered Accountants 2nd Floor, Regis House 45 King William Street London EC4R 9AN Date: Page 7 ## **THE FALKLANDS MARITIME HERITAGE TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 OCTOBER 2021** ||**Note**|**Unrestricted**|**Restricted**|**Total**|**Total**| |---|---|---|---|---|---| |||**funds**|**funds**|**2021**|**2020**| |||**£**|**£**|**£**|**£**| |**INCOME AND ENDOWMENTS FROM**|||||| |Donations and legacies|2|26|-|26|50,000| |Charitable activities|3|-|1,141,900|1,141,900|78,833| |Other income|4|60,100|-|60,100|-| |||____________|____________|____________|____________| |**Total**||60,126|1,141,900|1,202,026|128,833| |||____________|____________|____________|____________| |**EXPENDITURE ON**|||||| |**Charitable activities**|5||||| |Maritime history and heritage||36,351|822,477|858,828|132,227| |||____________|____________|____________|____________| |**NET INCOME/(EXPENDITURE)**||23,775|319,423|343,198|(3,394)| |||____________|____________|____________|____________| |**RECONCILIATION OF FUNDS**|||||| |Total funds brought forward||61,058|-|61,058|64,452| |||____________|___________|____________|____________| |**TOTAL FUNDS CARRIED FORWARD**||84,833
____________|319,423
____________|404,256
____________|61,058
____________| All income and expenditure has arisen from continuing activities. The notes on pages 11 to 16 form part of these financial statements. Page 8 THE FALKLANDS AIARrnME H£RffAGE TrUST STATEMENT OF FINANCWL posmoN AS AT 31 OCTO8ER2021 Companynumber." 09250869 2021 2020 FIXED ASSET8 Heritage assets 10 74,172 CURRENT ASSET8 Cash 8t bank D•btors 380,448 116,001 62,318 496.449 82,318 CReDITORS Amountsfalling du•wthin on• y•#v 12 1168.3851 11,2601 NET CURRENT A88ETMLIAeiuTIE81 330,084 81.058 TOTAL ASSETS LESS CURRENTUABILrnES 404.258 81.058 NET ASSETSI(UABIUIIES 404.256 61,OS6 FUND8 Unr•sth'cted lund R•sthcted fund 84,833 319,423 81,058 404,258 81.058 rh?s• fin•nci•l stat•m•nts h•v• b•en pr•p•r•d in *xord*rt• wilh th• •p•a•l provi•ion$ of Part 15 of th• Cornpani•B 2006 r?lat"ng to charitabl• small compan*#. Th• fin4ncial 8t•tsmontsw•r• Appiov•d byth• 80ord ol Truslo•8 on behalf by.. Ind w•re Bign•d on D A Lamont-Truste W P Featherston•-Trusts• The not•$ on p4ge8 1 I b) 16fom p•rtoflh•s• financ4•lsiatsm•rty. Pag• 9 ## **THE FALKLANDS MARITIME HERITAGE TRUST** ## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2021** ||**Note**||**2021**|**2020**| |---|---|---|---|---| ||||**£**|**£**| |**Cash flows from operating activities**||||| |Cash generated from operations|15||393,926|(3,274)| ||||____________|____________| |**Net cash provided by/(used in) operating activities**|||393,926|(3,274)| ||||____________|____________| |**Cash flows from investing activities**||||| |Purchase of heritage asset|||(75,796)|-| ||||____________|____________| |**Net cash provided by/(used in) investing activities**|||(75,796)|-| ||||____________|____________| |**Change in cash and cash equivalents in the**||||| |**reporting period**|||318,130|(3,274)| |**Cash and cash equivalents at the beginning of the**||||| |**reporting period**|||62,318|65,592| ||||____________|____________| |**Cash and cash equivalents at the end of the**||||| |**reporting period**|||380,448|62,318| ||||____________|____________| |**ANALYSIS OF CHANGES IN NET FUNDS**||||| |||**At 01/11/2020**|**Cash flow**|**At 31/10/2021**| |||**£**|**£**|**£**| |**Net cash**||||| |Cash at bank||62,318|348,130|380,448| |||____________|____________|____________| |**Total**||62,318
____________|348,130
____________|380,448
____________| The notes on pages 11 to 16 form part of these financial statements. Page 10 **THE FALKLANDS MARITIME HERITAGE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** ## **1. ACCOUNTING POLICIES** ## **General information and basis of preparation** The Falklands Maritime Heritage Trust is a company limited by guarantee in the United Kingdom. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are set out on page 2. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015. The Falklands Maritime Heritage Trust meets the definition of a public benefit entity under FRS 102. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. ## **Legal status** The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. ## **Preparation of the accounts on a going concern basis** The Trust has reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. It has therefore continued to adopt the going concern basis in preparing its financial statements. ## **Income** All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. Donations and legacies are recognised in the financial statements when the Trust is convinced that there i s entitlement to the income, there is certainty of receipt and the amount in question is measurable. Any administration fee is charged is recognised as unrestricted income. ## **Expenditure** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: Expenditure on charitable activities includes costs in relation to the maritime history and heritage. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. ## **Allocation of support and governance costs** Support costs are those that assist the work of the charity but do not directly represent charitable activities and include governance costs. They are incurred directly in support of expenditure on the objects of the charitable company. Governance costs comprise all costs involving the public accountability of the Trust and its compliance with regulation and good practice. These costs include costs related to the independent examination, statutory audit and legal fees. Support and Governance costs have been allocated across the charitable activities using various percentage allocations. Page 11 **THE FALKLANDS MARITIME HERITAGE TRUST** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** ## **1. ACCOUNTING POLICIES – continued** ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **Heritage assets** Heritage assets are recognised on the balance sheet and initially measured at cost when purchased. Assets are subsequently stated at cost less accumulated depreciation. Amortisation is provided on all intangible heritage assets, at rates calculated to write off the cost of each asset on a straight-line basis over the asset’s estimated useful lives as follows: Heritage asset 25-year straight line ## **Cash at bank and in hand** Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **Creditors** Creditors are recognised where the Trust has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Other creditors and accruals are recognised at their settlement amount due. ## **Financial instruments** The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **Judgements and key sources of estimation uncertainty** The preparation of financial statements requires management to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on a continuing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. ## **2. DONATIONS AND LEGACIES** ## **3.** |**DONATIONS AND LEGACIES**||||| |---|---|---|---|---| ||**Unrestricted**|**Restricted**|**2021**|**2020**| ||**£**|**£**|**£**|**£**| |Donations|26|-|26|50,000| ||____________|____________|____________|____________| |**CHARITABLE ACTIVITIES**||||| ||**Unrestricted**|**Restricted**|**2021**|**2020**| ||**£**|**£**|**£**|**£**| |Sale of film rights|-|-|-|78,833| |Grant income|-|1,141,900|1,141,900|-| ||____________|____________|____________|____________| ||-
____________|1,141,900
____________|1,141,900
____________|78,833
____________| Page 12 ## **THE FALKLANDS MARITIME HERITAGE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** |**4.**|**OTHER INCOME**|||||||| |---|---|---|---|---|---|---|---|---| |||**Unrestricted**|||**Restricted**||**2021**|**2020**| ||||**£**||**£**||**£**|**£**| ||Management fee income||60,100|||-|60,100|-| |||____________|||____________||____________|____________| |**5.**|**CHARITABLE ACTIVITIES COST**|||||||| ||||||||**Support**|| ||||||**Direct costs**||**costs**|**Total**| ||||||**(see note**|**6)**|**(see note 7)**|| ||||||**£**||**£**|**£**| ||Maritime history and heritage||||742,039||116,789|858,828| |||||||||| ||||||____________||____________|____________| |**6.**|**DIRECT COSTS OF CHARITABLE ACTIVITIES**|||||||| |||**Unrestricted**|||**Restricted**||**2021**|**2020**| ||||**£**||**£**||**£**|**£**| ||Expedition costs|||-|742,039||742,039|-| ||Film of the search operation|||-||-|-|103,585| |||____________|||____________||____________|____________| |||||-|742,039||742,039|103,585| |||____________|||____________||____________|____________| |**7.**|**SUPPORT COSTS**|||||||| ||||||||**2021**|**2020**| ||||||||**£**|**£**| ||Bank charges||||||584|60| ||Website costs||||||31,456|18,632| ||Advertising, media and communications||||||31,850|-| ||Professional fees||||||39,795|-| ||Amortisation||||||1,624|-| ||Sundry||||||4,794|2,015| ||Governance costs||||||6,686|5,852| ||Secretarial services||||||-|2,083| ||||||||____________|____________| ||||||||116,789|28,642| |||||||||| ||||||||____________|____________| ||**Governance costs**||||||**2021**|**2020**| ||||||||**£**|**£**| ||||||||-|1,230| ||Independent Examiner’s fee||||||4,500|-| ||Auditor’s remuneration||||||750|-| ||Non-audit fees paid to auditor||||||1,436|1,064| ||Insurance||||||-|3,558| ||Other professional fees||||||____________|____________| ||||||||6,686|5,852| ||||||||____________|____________| ## **8. TRUSTEES’ REMUNERATION AND BENEFITS** There were no Trustees' remuneration or other benefits for the year ended 31 October 2021 nor for the year ended 31 October 2020. The key management of the charity comprise the Trustees only. ## **Trustees' expenses** In 2021 and 2020, no Trustees had expenses reimbursed to them by the charity. Page 13 **THE FALKLANDS MARITIME HERITAGE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 OCTOBER 2021** ## **9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES (2020)** |||**2020**| |---|---|---| |||**Unrestricted**| |||**fund**| |||**£**| ||**INCOME AND ENDOWMENTS FROM**|| ||Donations and legacies|50,000| ||Charitable activities|78,833| ||Other income|-| |||____________| ||**Total**|128,833| |||____________| ||**EXPENDITURE ON**|| ||**Charitable activities**|| ||Maritime history and heritage|132,227| |||____________| ||**NET INCOME/(EXPENDITURE)**|(3,394)| |||____________| ||**RECONCILIATION OF FUNDS**|| ||Total funds brought forward|64,452| |||____________| ||**TOTAL FUNDS CARRIED FORWARD**|61,058| |||| |||____________| |**10.**|**HERITAGE ASSETS**|| |||**Scully**| |||**Archive**| |||**£**| ||**Cost**|| ||At 1 November 2020|-| ||Additions|75,796| |||____________| ||At 31 October 2021|75,796| |||____________| ||**Amortisation**|| ||At 1 November 2020|-| ||Charge for the year|1,624| |||____________| ||At 31 October 2021|1,624| |||____________| ||**Carrying amount**|| ||At 31 October 2021|74,172| |||____________| ||At 31 October 2020|-
____________| The archive consists of over 200 interviews with participants in the 1982 Falklands War and includes all major decision makers on both sides and from mediation countries, such as the USA, both political and military. No other collection of primary material contains such a comprehensive account of the lead up to war and the war itself. By its very nature most of the material is unique and irreplaceable. ## **11. DEBTORS** |Prepayments
**12.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other creditors|**2021**
**2020**
**£**
**£**
116,001
-
____________
____________
**2021**
**2020**
**£**
**£**
116,365
1,260
____________
____________| |---|---| Page 14 **THE FALKLANDS MARITIME HERITAGE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** ## **13. MOVEMENT IN FUNDS** |**MOVEMENT IN FUNDS**|||| |---|---|---|---| |||**Net**|| |||**movement in**|| ||**At 01/11/2020**|**funds**|**At 31/10/2021**| ||**£**|**£**|**£**| |**Unrestricted funds**|||| |General fund|61,058|23,775|84,833| |**Restricted funds**|||| |Endurance 22|-|319,423|319,423| ||____________|____________|____________| |**TOTAL FUNDS**|61,058|343,198|404,256| ||____________|____________|____________| |Net movement in funds, included in the above are as follows:|||| ||**Incoming**|**Resources**|**Movement in**| ||**resources**|**expended**|**funds**| ||**£**|**£**|**£**| |**Unrestricted funds**|||| |General fund|60,126|(36,351)|23,775| |**Restricted funds**|||| |Endurance 22|1,141,900|(822,477)|319,423| ||____________|____________|____________| |**TOTAL FUNDS**|1,202,026
____________|(858,828)
____________|343,198
____________| The Trust has been tasked with the management and financial control of an Expedition to try to locate the Shackleton Expedition ship “Endurance” The Expedition will sail in the early part of 2022 and will be more fully reported in next year’s accounts. ## **Comparatives for movement in funds** |||**Net**|| |---|---|---|---| |||**movement in**|| ||**At 01/11/2019**|**funds**|**At 31/10/2020**| ||**£**|**£**|**£**| |**Unrestricted funds**|||| |General fund|64,452|(3,394)|61,058| ||____________|____________|____________| |**TOTAL FUNDS**|64,452|(3,394)|61,058| ||____________|____________|____________| |Net movement in funds, included in the above are as follows:|||| ||**Incoming**|**Resources**|**Movement**| ||**resources**|**expended**|**in funds**| ||**£**|**£**|**£**| |**Unrestricted funds**|||| |General fund|128,833|(132,227)|(3,394)| ||____________|____________|____________| |**TOTAL FUNDS**|128,833
____________|(132,227)
____________|(3,394)
____________| Page 15 ## **THE FALKLANDS MARITIME HERITAGE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021** ## **14. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 31 October 2021 and for the year ended 31 October 2020. ## **15. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** ||**2021**|**2020**| |---|---|---| ||**£**|**£**| |**Net income for the reporting period (as per the statement of financial**||| |**activities)**|343,198|(3,394)| |**Adjustments for:**||| |Increase in creditors|165,105|120| |Increase in debtors|(116,001)|-| |Amortisation|1,624|-| ||____________|____________| |**Net cash provided by/(used in) operating activities**|393,926
____________|(3,274)
____________| Page 16 ## **THE FALKLANDS MARITIME HERITAGE TRUST** ## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OCTOBER 2021** ||**Total**|**Total**| |---|---|---| ||**2021**|**2020**| ||**£**|**£**| |**INCOME AND ENDOWMENTS FROM**||| |**Donations and legacies**||| |Donations|26|50,000| |**Charitable activities**||| |Grant income|1,141,900|-| |Sale of film rights|-|78,833| |**Other income**||| |Management fee income|60,100|-| ||____________|____________| |**Total incoming resources**|1,202,026|128,833| ||____________|____________| |**EXPENDITURE ON**||| |**Charitable activities**||| |Expedition costs|742,039|-| |Film of search operation|-|103,585| ||____________|____________| ||742,039|103,585| ||____________|____________| |**Support costs**||| |Bank charges|584|60| |Website costs|31,456|18,632| |Advertising, media and communications|31,850|-| |Professional fees|39,795|-| |Amortisation|1,624|-| |Sundry|4,794|2,015| |Secretarial services|-|2,083| |**Governance costs**||| |Independent Examiner’s fee|-|1,230| |Auditor’s remuneration|4,500|-| |Non-audit fees paid to auditors|750|-| |Insurance|1,436|1,064| |Other professional fees|-|3,558| ||____________|____________| ||116,789|28,642| ||____________|____________| |**Total resources expended**|858,828|132,227| ||____________|____________| |**Net income/(expenditure)**|343,198
____________|(3,394)
____________| Page 17