# **THE HONOURABLE COMPANY OF MASTER MARINERS**
# **AND HOWARD LEOPOLD DAVIS CHARITY**
**(CHARITABLE INCORPORATED ORGANISATION)**
**TRUSTEES’ REPORT AND**
## **FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31ST DECEMBER 2022**
**Registered No: 1172234**
**The Honourable Company of Master Mariners And Howard Leopold Davis Charity**
## **Trustees’ Report for the Year Ended 31st December 2022**
## **Reference and Administration Details**
|**Trustees**|Captain H J Conybeare (Chairman)|
|---|---|
||Mr M Burrow (Ex-officio)|
||Captain D Chadburn|
||Commander L Chapman|
||Captain J K Mooney (Ex-officio)|
||Captain N Rodrigues (Almoner)|
||Commander P Aylott|
||Captain R Barnes|
||Captain RFA Batt (Ex-officio to 1 May 2023)|
||Captain C Brewer (Appointed 1 May 2023)|
||Captain G English (Ex-officio from 1 May 2022)|
||Captain P McArthur (Ex-officio from 1 May 2023)|
|**Registered Charity Number**|1172234|
|**Administrator**|Honourable Company of Master Mariners|
||No. 1 The Rubicon|
||51 Norman Road|
||London SE10 9QB|
|**Principal Office Address**|Honourable Company of Master Mariners|
||No. 1 The Rubicon|
||51 Norman Road|
||London SE10 9QB|
|**Auditors**|Knox Cropper LLP|
||65 Leadenhall Street|
||London EC3A 2AD|
|**Bankers**|C Hoare & Co.|
||37 Fleet Street|
||London EC4P 4DQ|
||CAF Bank Ltd|
||25 Kings Hill Avenue|
||West Malling|
||Kent ME19 4JQ|
|**Investment Managers**|Evelyn Partners|
||45 Gresham Street|
||London EC2V 7BG|
Page | 1
**The Honourable Company of Master Mariners And Howard Leopold Davis Charity**
## **Trustees’ Report for the Year Ended 31st December 2022**
The Trustees present their report and the financial statements of the Charity for the year ended 31st December 2022. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 and comply with the Charity’s Constitution, the Charities Act 2011, and the requirements of the Statement of Recommended Practice “Accounting and Reporting by Charities” issued by the Charity Commission.
## **Structure, Governance and Management**
## _Governing Document_
The Honourable Company of Master Mariners and Howard Leopold Davis Charity is a Charitable Incorporated Organisation established under a constitution dated 24th March 2017. On 31st March 2017, the predecessor unincorporated charity (Charity no. 1127213) transferred its assets and liabilities to the CIO.
The Charity represents the present form of the amalgamation of four historic charities, being the Benevolent Fund (Charity No 207094), Education Fund (Charity No 313382), The Howard Leopold Davis Fund (Charity No 207095) and London Maritime Institution (Charity No 207087) which were merged in 2010.
## _Trustees_
In accordance with the Charity’s Constitution, the following office holders of the Honourable Company of Master Mariners for the time being are ex-officio trustees of the Charity: Master, Senior Warden, Chairman of the Education and Training Committee, and Chairman of the Finance and Risk Committee. The appointment of new Trustees is vested in the Court of the Honourable Company of Master Mariners (HCMM). The Trustees receive no remuneration and no claims for reimbursement of expenses were made during the year.
## _Risk Management_
The Trustees have considered the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.
## _Trustees’ Responsibilities_
Charity law requires the Trustees to prepare financial statements for each financial period, which give a true and fair view of the Trust’s financial activities during the year and of its income and expenditure for that period. In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements; and
- Prepare the financial statements 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 which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page | 2
## **The Honourable Company of Master Mariners And Howard Leopold Davis Charity**
## **Trustees’ Report for the Year Ended 31st December 2022**
## **Organisation**
The Charity has no premises or employees. The administration and record keeping of the Charity is carried out by the HCMM for which services an annual agreed charge is made to cover their costs.
## **Objectives and Activities**
The Benevolent purposes are to relieve:
- a. Master Mariners and maritime Navigating Officers of the Merchant Navy, and,
- b. their families and dependants,
who are in need through financial hardship, sickness, disability or the effects of old age.
The Educational purposes are to educate and train:
- a. persons serving or intending to serve in the Merchant Navy, and,
- b. persons with an interest in seamanship or sailing.
## **Achievements and Performance Including How The Charity Has Delivered Public Benefit**
The Charity awarded £220,067 (2021: £166,161) in benevolent and educational grants in the year to qualified individuals and to organisations during the year. The Charity’s educational grants including its continuing sponsorship of cadets completing courses with Chiltern Maritime as well as supporting education and outreach work carried out by the Honourable Company of Master Mariners. The Trustees have had regard for the Charity Commission’s guidance on public benefit.
## **Financial Review**
The Trustees have reviewed the investment policy and consider the investments to be prudently managed with reasonable diversification, so as to provide a suitable balance between income and capital appreciation.
The period resulted in net expenditure of £(1,084,361), including losses on investments of £(861,373) resulting in funds of the Charity decreasing to £4,476,480 of which £1,326,332 is restricted for educational purposes. The funds are represented by investments of £4,234,429 and net current assets of £242,051.
## _Reserves Policy_
It is the policy of the Trustees to maintain unrestricted funds (predominantly in investments), which are the free reserves of the charity, at a level considered appropriate to generate an annual income for grants etc. It also provides sufficient funds to cover management and administration and support costs and to respond to emergency applications for grants which arise from time to time. Reserves at the year end amounted to £3,150,148.
Page | 3
The Honourable Com
an
of Master Mariners And Howard Leo
old Davis Chari
Trustees, Re ort for the Year Ended 315t December 2022
This report was approved by the Trustees on
Ortober 2023 and signed on its behalf by:
Captai
Trust
Hjconv
eare
Page14
**Independent Auditors’ Report to the Trustees of**
## **The Honourable Company Of Master Mariners And Howard Leopold Davis Charity**
## **Opinion**
We have audited the financial statements of The Honourable Company of Master Mariners and Howard Leopold Davis Charity (the ‘charity’) for the year ended 31st December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including a summary of 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 Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
• give a true and fair view of the state of the charity’s affairs as at 31st December 2022 and of its incoming resources and application of resources for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the Charities Act 2011.
## **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 financial statements section of our report. We are independent of the charity 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 fulfilled 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 financial 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the 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 annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material
Page | 5
**Independent Auditors’ Report to the Trustees of**
## **The Honourable Company Of Master Mariners And Howard Leopold Davis Charity**
inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
• the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 2, the trustees 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 charity’s ability to continue 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 charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- The Charity is required to comply with charity law and, based on our knowledge of its activities, we identified that the legal requirement to accurately account for restricted funds was of key significance.
- We gained an understanding of how the charity complied with its legal and regulatory framework, including the requirement to properly account for restricted funds, through discussions with management and a review of the documented policies, procedures, and controls.
Page | 6
Inde
endent Auditors, Re
ort to the Trustees of
The Honourable Com
an
Of Master Mariners And Howard Leo
old Davis Charit
The audit team, which is experienced in the audit of charities, considered the charity's susceptibility to
material misstatement and how fraud may occur. Our considerations included the risk of management
override.
Our approach was to check that all restricted income was properly identified and separately accounted
for and to ensure that only valid and appropriate expenditure was charged to restricted funds. This
included reviewin8 journal adjustments and unusual transactions.
There are inherent limitations in the audit procedures described above and, the further removed non-compliance
with laws and regulations is from the events and transactions reflected in the financial statements, the less likely
we would become aware of it. The risk of not detecting a material misstatemeni due to fraud is higher than the
risk of not detectin8 one resultin8 from er¥or, a5 fraud may involve Ileliberate concealment by, for example,
forgery or intentional misrepresentations, or through collusion.
A further description of our re5ponsibilitie5 for the audit of the financial statements is located on the Financial
Reporting Council's website at.. www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor's report.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts
and Reports) Regulations 2008. Our audit work has been undertaken, so that we mi8ht state to the charity's
trijstees those matters we are required to state to them in an auditorfs report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charily and
the charity's trustees as a body, for our audit work, for this report or for the opinions we have formed.
LLP
Knox Cropper LLP
Chartered Accountants and Statutory Auditor5
65 Leadenhall Street
London EC3A 2AD
023
Knox Cropper LLP is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment
s auditor of a company under section 1212 of the Companies Act 2006.
Pagel 7
## **The Honourable Company Of Master Mariners And Howard Leopold Davis Charity**
## **Statement of Financial Activities**
## **For The Year Ended 31st December 2022**
|**Notes**
**Income From**
Donations and Legacies
Investments
2
**Total Income**
**Expenditure On**
Raising Funds: Investment Management Fees
Charitable Activities
3
**Total Expenditure**
**Net Gains/(Losses) on Investments**
4
**Net Income/(Expenditure)**
**and Net Movement in Funds**
**Reconciliation Of Funds**
**Total Funds Brought Forward**
**Total Funds Carried Forward**|
**Unrestricted**
**Funds**
£
1,138
46,957
48,095
13,504
104,520
118,024
(559,893)
(629,822)
3,779,970
£3,150,148||**2022**|
**Total**
£
1,138
72,241
73,379
20,776
275,591
296,367
(861,373)
(1,084,361)
5,560,841
£4,476,480|
**Unrestricted**
**Funds**
£
22,183
58,846
81,029
15,219
67,407
82,626
426,280
424,683
3,355,287
£3,779,970||**2021**|
**Total**
£
22,183
90,532|
|---|---|---|---|---|---|---|---|---|
||||**Restricted**
**Funds**
£
-
25,284
25,284
7,272
171,071
178,343
(301,480)
(454,539)
1,780,871
£1,326,332
||||**Restricted**
**Funds**
£
-
31,686
31,686
8,195
130,769
138,964
229,535
122,257
1,658,614
£1,780,871||
|||||||||112,715|
|||||||||23,414
198,176|
|||||||||221,590|
|||||||||655,815|
|||||||||546,940
5,013,901|
|||||||||£5,560,841|
All the activities reported above relate to continuing operations.
The notes on pages 11 to 16 form an integral part of these financial statements.
Page | 8
The Honourable Com
an
Of Master Mariners And Howard Leo old Davis Chari
Balance Sheet
As At 31st December 2022
2022
2021
Notes
Fixed Assets
Investments
4,234,429
5,412,779
Current Assets
Debtors
Cash at Bank and In Hand
12,396
261,877
274,273
3.087
172,929
176,016
Creditors: Amounts Falling Due
Within One Year
132,2221
27,9541
Net Current Assets/(Liabllities)
242,051
148.062
Total A55ets Less Current Liabilities
4,476,480
5,560,841
Net Assets
£4,471,877
£5,560,841
Unrestricted Funds
3,150,148
3,779,970
Restrlcted Fund
1,326,332
1,780,871
Total Funds
£4.476,480
£5,560,841
The financial statements were approved by the Trustees on
2023, and signed on their behalf by..
Captain H J
onybear
Trustee
The notes on pages 11 to 16 form an integral part of these financial statements.
Page19
## **The Honourable Company Of Master Mariners And Howard Leopold Davis Charity**
## **Statement Of Cash Flows**
## **For The Year Ended 31st December 2022**
|**Notes**
**Cash Flows from Operating Activities**
**Net Cash provided by (used in) Operating Activities**
A
**Cash Flows from Investing Activities**
Dividends and Interest
Proceeds from Sale of Investments
Purchase of Investments
Investment Management Fees
Movement in Cash at Investment Managers
**Net Cash provided by (used in) Investing Activities**
**Change in Cash and Cash Equivalents in the Reporting Period**
**Cash and Cash Equivalent at the beginning of the Reporting**
**Period**
**Cash and Cash Equivalent at end of the Reporting Period**
**A. Reconciliation of Net Income/(Expenditure) to net cash flow**
**from Operating Activities**
Net Income/(Expenditure) for the Reporting Period
(Gains)/Losses on Investments
Decrease/(Increase) in Debtors
(Decrease)/Increase in Creditors
Dividends and Interest
Investment Management Fees
Net Cash provided by (Used in) Operating Activities
**B. Analysis of changes in net funds**
**At 01/01/2022**
£
Cash at bank and in hand
172,929|**2022**
**2021**
£
£
(275,646)
(191,384)
64,593
85,110
944,844
1,014,703
(441,137)
(682,429)
(21,910)
(22,812)
(181,796)
(66,925)
364,594
327,647
88,948
136,263
172,929
36,666
£261,877
£172,929
(1,084,361)
546,940
861,373
(655,815)
(6,595)
(2,207)
5,402
(13,184)
(72,241)
(90,532)
20,776
23,414
£(275,646)
£(191,384)
**Cash flows**
**At 31/12/2022**
£
£
88,948
261,877|**2021**
£
(191,384)
85,110
1,014,703
(682,429)
(22,812)
(66,925)|
|---|---|---|
|||327,647|
|||136,263
36,666|
|||£172,929|
|||546,940
(655,815)
(2,207)
(13,184)
(90,532)
23,414|
|||£(191,384)|
Page | 10
**The Honourable Company Of Master Mariners And Howard Leopold Davis Charity**
## **Notes To The Financial Statements**
## **For The Year Ended 31st December 2022**
## 1. **Accounting Policies**
## (a) **Structure**
The Charity is a Charitable Incorporated Organisation, registered with the Charity Commission (registration number 1172234). The principal office address is Honourable Company of Master Mariners, No. 1 The Rubicon, 51 Norman Road, London SE10 9QB. A description of the charity’s operations and principal activities can be found in the Report of the Trustees.
## (b) **Basis of Preparation and assessment of going concern.**
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. They 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 Standards applicable in the UK and Republic of Ireland (FRS 102) Second Edition issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102 March 2018) and the Charities Act 2011. The presentation currency of the financial statements is the Pound Sterling (£). The Charity constitutes a public benefit entity as defined by FRS 102.
The accounts have been prepared to give a ‘true and fair view’ and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) Second Edition issued in October 2019 rather than the Accounting and Reporting by Charities Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Trustees consider that there are no uncertainties about the Charity’s ability to continue as a going concern.
## (c) **Funds Structure**
Unrestricted Funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor. There is a single restricted fund, the Education Fund, restricted to provide grants for Educational Purposes.
## (d) **Income Recognition**
- All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income from investments is recognised on the date on which the dividend is payable, or the interest accrues.
Income from donations is normally recognised on receipt, unless terms or conditions limit recognition until a later date.
Page | 11
**The Honourable Company Of Master Mariners And Howard Leopold Davis Charity**
## **Notes To The Financial Statements**
## **For The Year Ended 31st December 2022**
## (e) **Expenditure Recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.
- Costs of Raising Funds
The costs of raising funds comprises investment management costs.
- Charitable Expenditure
- Cost of Charitable Activities includes grants paid, and support costs including Governance costs. Grants payable are payments to individuals in the furtherance of the charitable objects of the charity. The Charity, in some instances, provides an unsecured loan to a beneficiary in furtherance of its educational objects. These are recognised as expenditure in the year that they are awarded.
- Governance Costs
Governance costs comprise all costs involved with compliance with regulation and good practice.
## (f) **VAT**
The Charity is not registered for Value Added Tax. Expenditure shown in the financial statements is inclusive of VAT.
## (g) **Investments**
The Charity’s investments consist only of quoted securities. Initially they are recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on the revaluations and disposals throughout the year.
Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.
Investments are allocated to Restricted and Unrestricted Funds at a set percentage.
## (h) **Debtors and Creditors**
Debtors and creditors are recognised where, at the balance sheet date, an entitlement to receive or an obligation to transfer economic benefit exists and receipt or settlement is probable and can be measured reliably.
Debtors are measured at the expected recoverable amount and creditors at the expected settlement amount, discounted for the time value of money if material.
Page | 12
## **The Honourable Company Of Master Mariners And Howard Leopold Davis Charity**
## **Notes To The Financial Statements**
## **For The Year Ended 31st December 2022**
## 2. **Investment Income**
|Dividends
Bank Interest
3.
**Analysis of Charitable Activities**
**Direct Costs**
Grants and Awards
Grants to Individuals
Grants to Organisations (Note 10)
HCMM Journal
Library Works
**Support Costs**(Note 3.a)
**Direct Costs**
Grants and Awards
Grants to Individuals
Grants to Organisations (Note 10)
HCMM Journal
Library Works
**Support Costs**(Note 3.a)
3.a
**Support Costs**
Management Fees - HCMM
Other
Governance Costs|||**2022**
**Total**
£
72,114
127
£72,241
**2022**|||**2021**
**Total**
£
90,358
174
£90,532
**Total**
£
70,514
140,915
8,638|
|---|---|---|---|---|---|---|
||||||||
||||||||
|||**Unrestricted**
**Funds**
£
34,900
52,700
-
87,600
-
16,920
£104,520
|**Restricted**
**Funds**
£
35,614
88,215
8,638||||
||||132,467
38,604
-|||220,067
38,604
16,920|
||||£171,071|||£275,591|
||||**2021**|||
**Total**
£
75,108
79,708
11,345|
|||**Unrestricted**
**Funds**
£
49,092
1,980
-
51,072
-
16,335
£67,407|**Restricted**
**Funds**
£
26,016
77,728
11,345||||
||||115,089
15,680
-|||166,161
15,680
16,335|
||||£130,769|||£198,176|
||||**2022**
£
12,000
280
4,640
£16,920|||**2021**
£
12,000
563
3,772
£16,335|
||||||||
Governance Costs – Includes External Audit Fees amounting to £4,640 (2021: £3,816) inclusive of VAT.
Page | 13
## **The Honourable Company Of Master Mariners And Howard Leopold Davis Charity**
## **Notes To The Financial Statements**
## **For The Year Ended 31st December 2022**
## 4. **Fixed Asset Investments**
|**Market Value**
At 1st January
Acquisitions and accumulated income
Disposals
Gains/(Losses) on investments
At 31st December
Investments at Market Value
Cash with Investment Managers
Historic cost of investments|**2022**
£
5,340,849
446,071
(1,105,806)
(700,411)
£3,980,703
3,980,703
253,726
£4,234,429
£3,218,423|**2021**
£
5,012,599
687,138
(981,718)
622,830|
|---|---|---|
|||£5,340,849|
|||5,340,849
71,930|
|||£5,412,779|
|||£3,618,148|
All investments are listed securities or open-ended investment companies. Included within Fixed Asset Investments is £3,980,703 (2021: £5,340,849) measured at fair value through income and expenditure.
During the year, the Charity sold investments with a net book value of £1,105,806 for net proceeds of £944,844, generating realised losses on sale of £160,962.
## 5. **Debtors**
|Due from HCMM
Sundry Debtors|**2022**
£
8,802
3,594
£12,396|**2021**
£
2,207
880
£3,087|
|---|---|---|
## 6. **Creditors: Amounts Falling Due Within One Year**
|Grants Payable
Other Creditors
Accruals and Deferred Income|**2022**
£
17,430
1,272
13,520
£32,222|**2021**
£
16,667
1,272
10,015|
|---|---|---|
|||£27,954|
The Charity is managed by the Honourable Company of Master Mariners who incur certain costs on behalf of the Charity which are reimbursed to the Honourable Company.
Page | 14
## **The Honourable Company Of Master Mariners And Howard Leopold Davis Charity**
## **Notes To The Financial Statements**
## **For The Year Ended 31st December 2022**
## 7. **Restricted Funds**
|**Restricted Funds**|||
|---|---|---|
|Balance at 1st January
Income
Expenditure
Gains on Investment Assets
Balance at 31st December|**2022**
£
1,780,871
25,284
(178,343)
(301,480)
£1,326,332|**2021**
£
1,658,614
31,686
(138,964)
229,535|
|||£1,780,871|
Restricted funds represent funds specified for educational purposes. These funds are represented by investment and other assets. The funds are not represented by specific investments, and investment income, management fees and realised and unrealised movements are allocated on an agreed percentage.
## 8. **Related Party Transactions**
Under the Charity’s constitution, certain office holders of HCMM are ex-officio trustees of the Charity and power to nominate trustees to the Charity is vested in HCMM. The administration of the Charity is performed by HCMM which charges a management fee to the Charity. During the period the charge, inclusive of VAT, was £12,000 (2021: £12,000). The Charity provided grants of £8,638 (2021: £11,345) during the year towards the cost of the journal produced by HCMM and £60,000 (2021: £60,000) in support of the education and outreach work carried out by HCMM. The balance due from HCMM at 31st December 2022 was £8,802 (2021: £2,207).
No trustee received any remuneration for their role as a trustee or any reimbursement of expenses during the year.
## 9. **Net Assets By Fund**
|Investments
Net Current Assets/(Liabilities)
Investments
Net Current Assets/(Liabilities)|**Unrestricted**
**Fund**
£
2,752,379
397,769
£3,150,148
**Unrestricted**
**Fund**
£
3,518,306
261,664
£3,779,970|**Restricted**
**Fund**
£
1,482,050
(155,718)
£1,326,332
**Restricted**
**Fund**
£
1,894,473
(113,602)
£1,780,871|**2022**
**Total**
£
4,234,429
242,051|
|---|---|---|---|
||||£4,476,480|
||||**2021**
**Total**
£
5,412,779
148,062|
||||£5,560,841|
Page | 15
## **The Honourable Company Of Master Mariners And Howard Leopold Davis Charity**
## **Notes To The Financial Statements**
## **For The Year Ended 31st December 2022**
## 10. **Grants To Organisations**
|**rants To Organisations**|||
|---|---|---|
|Honourable Company of Master Mariners
London Nautical School
Royal Alfred Seafarers’ Society
Ocean Youth Sailing Trust
Portsmouth Harbour Marine
Maritime Futures
Royal Liverpool Seaman’s Orphan Institution
Sea Cadets Aberdeen
Sea Cadets Hull
Sea Cadets Newport
Sea Cadets Sefton
Sea Cadets Whitley Bay
Sea Cadets York
Thames Traditional Rowing Association|**2022**
£
60,000
10,200
50,000
6,000
-
7,500
2,700
1,000
1,000
1,000
1,000
1,000
-
(485)
£140,915|**2021**
£
60,000
-
-
7,000
4,000
-
1,980
1,000
1,000
1,000
1,000
-
2,000
728|
|||£79,708|
## 11. **Unrecognised Funding Commitments**
The Charity has agreed to provide grants to cover the costs of cadet attending maritime college over three-year periods. These commitments are subject to regular review of the cadets’ progress and are to be funded from income generated by the investment portfolio.
Page | 16