The Royal Engineer Yacht Club
Trustees' report and financial statements for the year ended 31st December 2022
Charity number: 1178311
Charity number: 1178311
The Royal Engineer Yacht Club
Trustees' report and financial statements for the year ended 31 December 2022
| Contents | Page |
|---|---|
| Reference and administrative details of the Charity, its Trustees and Advisers | 1 |
| Trustees’ report | 2 to 9 |
| Independent Examiner's report | 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Notes to the financial statements | 13 to 21 |
Page 1
The Royal Engineer Yacht Club
Trustees’ Report for the year ended 31 December 2022
Trustees
Lieutenant Colonel JGJ Robinson Lieutenant Colonel C W Battey Lieutenant General R Wardlaw OBE Colonel (Retired) R C Hendicott MBE
Lieutenant Colonel (Retired) A F M Douglas
Commodore (Appointed 02/08/2021) (1) Vice-Commodore (Appointed 01/11/20) (1) Trustee (Elected 04/10/19) Trustee (Elected 01/11/20) Chair (Appointed 29/10/21) Trustee (Elected 29/10/21, Resigned 18/10/22)
(1) Ex-officio, normally appointed for 3 years
Non Trustee Appointment
Colonel (Retired) R D Richards Major General (Retired) A E Whitley Lieutenant Colonel (Retired) J D Lewis
Honorary Secretary (Appointed November 2021) Honorary Treasurer (Appointed November 2021) Secretary to the Board of Trustees (Appointed 01/09/20)
Principal Office
Royal Engineer Yacht Club The Ravelin Building Brompton Barracks Dock Road Chatham Kent ME4 4UG
Independent Examiner
Chris Deacon FCCA Vision Accounting Fortis House Cothey Way Ryde PO33 1QT
Independent Bookkeeper
Tracie Wilson MICB, AATQB, PM Dip Ms Friday Accountancy Services Office 4, George Street Chambers George Street Ryde PO33 2EW
Bankers
Lloyds PLC Piccadilly Branch PO Box 1000 London BX1 1LT
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Trustees’ Report for the year ended 31 December 2022
TRUSTEES REPORT
The Trustees present their annual report and independently examined financial statements for the year ended 31 December 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 2 of the accounts and comply with the Charities Act 2011 and the Charities SORP 2012. In doing so they comply with the Statement of Trustees’ Responsibilities shown below.
Trustees consider that in preparing the financial statements they have taken into account all information that could reasonably be expected to be available (including levels of reserves held); thus the going concern basis of accounting is deemed appropriate and there are no material uncertainties.
Statement of Trustees’ Responsibilities
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its income and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102) (2019);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Charity’s Constitution. 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.
BACKGROUND
The Royal Engineer Yacht Club (REYC) was founded in 1846, making it one of the senior yacht clubs in the United Kingdom. Full membership is open to all serving and ex-serving Royal Engineers, with non-voting membership available to individuals (civilian and military) who are closely associated with the Corps of Royal Engineers or the Club and who support its Object.
ORGANISATION AND GOVERNANCE
Organisation
REYC is a Charitable Incorporated Organisation (Association Model) (CIO (AM)) registered with the Charity Commission on 9 May 2018. Its governing document is its Constitution.
The Trustees manage the Club according to its Constitution and make Rules necessary for the proper conduct and management of the CIO. The Rules delegate day to day management to the Main Committee chaired by the Commodore, who is supported by the Vice Commodore and three Rear Commodores responsible for Inshore, Offshore and Regions activities. It is the practice of the Club that any new or amended Rules shall be brought to the attention of Members at a General Meeting.
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Trustees’ Report for the year ended 31 December 2022
Accountancy support was provided by Royal Engineer Corps’ Funds at Chatham for the early part of the reporting year, but the opportunity has been taken during the year to transfer accountancy support to MS Friday Accountancy Services, Office 4, George Street Chambers, George Street, Ryde, PO33 2EW. This is partly due to a reduction in available capacity within Corps’ Funds to provide continued support and primarily to seize an opportunity to place accountancy support in the hands of a small flexible accounting firm able to provide support in a more cost-effective form aligned more closely with the day-to-day needs of the Club. In recent years our accounts have been fully audited as it was expedient to do so alongside the various other accounts held by Corps’ Funds, but our annual turnover did not necessitate this. Accordingly we have also taken the opportunity to submit our 2022 accounts for independent examination rather than full audit. The independently examined accounts accompanying this Trustees’ Annual Report cover the year from 1 January to 31 December 2022, which is the Club’s fourth full year as a CIO.
Recruitment and Appointment of Trustees
Our Constitution provides for three Trustees elected by Full Members at a General Meeting, two of whom are required to have served previously as Flag Officers of REYC. There are also two ex-officio appointments, the Commodore and Vice Commodore, also elected by Members at a General Meeting. We entered this reporting year with a full complement of trustees, but one of our elected trustees resigned in October 2022 and we took the decision to wait until the 2023 Annual General Meeting to seek election of a successor, rather than to co-opt or hold an interim election. The reduction by one elected trustee still leaves us within the numerical requirements of our Constitution.
Trustee Induction and Training
Trustees are all provided with the necessary documents on appointment and suitably trained for their charitable role. Their experience of sailing provides them with knowledge to support sailing activities.
OUR CHARITABLE OBJECT
Our Charitable Object is, for the public benefit, the promotion of the efficiency of the armed forces of the Crown by:
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the provision and support of sailing facilities, equipment and activities for the efficiency and well-being of Service personnel;
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increasing physical fitness of members of the Services through sailing;
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providing opportunities for Service personnel to gain additional experience and develop the military virtues of courage, self-reliance, mental robustness, endurance and leadership relevant to their jobs;
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encouraging esprit de corps and fostering high morale through representation in sporting competitions;
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providing an association which supports the Corps of Royal Engineers and enables serving and former members to mix together, and creating opportunities for mentoring junior leaders by older, more experienced members.
ACTIVITIES AND ACHIEVEMENTS IN 2022
The Trustees confirm that they have paid due regard to the Charity Commission of England and Wales guidance on public benefit when deciding what activities the charity should undertake.
The Club’s activities are conducted as follows:
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The Offshore Division has only operated one yacht for the majority of 2022, having sold one in January as planned. The intention is to purchase a replacement second yacht as soon as Club circumstances and market conditions are right (this has now happened, with the acquisition of Ilex, an X-34, in February 2023). The focus of the Offshore Division remains sail training; adventurous training; competing in sailing regattas throughout the year and cruising.
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The Inshore Division is responsible for dinghy sailing, windsurfing and kite surfing, with teams from these disciplines participating in competitions and running an annual development week for novices.
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Trustees’ Report for the year ended 31 December 2022
- The Regions Division is responsible for coordinating and supporting Club activities across the UK.
The Club is now comfortably through the aftermath of Covid-related restrictions and all divisions are, again, to be congratulated for active participation in training, competition, adventurous expeditions and cruising. Our activities contributed substantially to the general well-being of serving soldiers, whether Club members or not. Indeed, a recent survey identified that more serving personnel who are not formally members of the Club have been involved in REYC-facilitated sailing during 2022 than members. We are now actively considering how we might formally recognise this position in furtherance of our Charitable Object. Again, non-serving members have contributed significantly to the management and development of the Club, in direct support of Corps sailing, and in mentoring less experienced people.
Offshore Division
2022 has featured strong activity, both on and off the water. There have been some significant challenges but enthusiasm for offshore sailing is strong and the level of support we have received from all quarters – the field army, club volunteers, the Army Sailing Association and various ‘friends of the REYC’ – has been heartening.
In February we sold off our much-used, much-loved Dehler 32, Right Royal . This has meant the 2022 season relied on one yacht and a team of willing volunteers to keep an ambitious programme on track. Despite operational commitments for our target audience being on the rise, and a theoretical reduction in capacity while we search for a new boat, we have managed to maintain almost exactly the same level of service delivery as 2021.
Our J109 yacht, Trojan, took part in all of the usual events in the Solent – the Army Offshore Regatta, the Lymington Meet, Junior Offshore Group races etc – but also spent the summer cruising and exploring the south west of the UK, the Irish Sea and even as far as the Hebrides. This allowed crews to build significant time at sea and the chance to take part in some more distant and challenging regattas including Cork Week and West Highland Week. Of particular note is that Trojan won the Beaufort Cup as part of Cork Week: the first time this trophy has been won by a non-Irish yacht.
Elsewhere the Club ran a flotilla training week, ‘The Royal Engineer Sail Training Week’, where we fielded seven yachts crewed by soldiers from across the Corps, and a series of skipper development weekends which have already yielded two more Yachtmaster (Offshore) qualified skippers, with several more approaching their exams in early 2023.
Looking ahead, the 2023 season already shows great promise. We have found a new yacht to complement Trojan , as planned, and hope to have her converted to sail-training specification and on the water by early spring. We have a full programme for offshore racing, including an assured entry in the coveted Rolex Fastnet Race, a training pipeline to develop, and we will be in full support of a Royal Engineer expedition to sail to South Georgia using a Joint Services Adventurous Sail Training Centre yacht.
Inshore Division
After a concerted effort to advertise inshore sail training activity, around 24 soldiers attended training in dinghy sailing, kitesurfing, winging and windsurfing at the Army Inshore Sail Training Centre at Thorney Island over the period 19-23 Sep 22. This brought all the Inshore disciplines together towards the end of the season and the final night coincided with a visit to Thorney Island by the Offshore element of the RE Sail Training Week. This was the first time for several years that we had managed to bring together both divisions of the Club on the water at the same time in the same place. It was a great success.
Dinghy Sailing . The contract continues for the delivery of sail training by Medway Yacht Club for soldiers under training at 1 RSME Regiment and has been renegotiated to include an RYA Level 1 dinghy qualification. During the course of the year 18 soldiers gained this qualification. Our dinghy sailors also continue to have access to local clubs near Catterick and Ripon thereby facilitating easier access to those serving in the north of the country. Three RE boats, including Stan and Townsend, raced at the Laser 2000 National Championships at Weymouth achieving 12[th] , 18[th] and 44[th] positions overall. Our dinghy sailors also successfully defended their position as Army Inter Corps Team Racing Champions, with 2022 marking the fifth consecutive year that Sappers have won the Lagos Trophy.
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Trustees’ Report for the year ended 31 December 2022
Windsurfing . As part of the Army Windsurfing team, Sappers were selected to compete at the Defi Wind event in Gruissan in France during the period 20-30 May 22. Army Foil training continues to progress, with strong REYC participation, with a development clinic delivered at the Army Inshore Sail Training Centre on 13-14 Aug 22. To help introduce windsurfing to novices, £10,000 of new equipment has been purchased using Army Welfare Grants and REYC funding.
Kitesurfing . An Overseas Sports Visit to Cyprus in Aug 22 provided qualifications or intermediate progression training to 11 individuals, including 9 new members of the REYC. This included a grassroots twin-tip race/freestyle competition. Members of the RE kitesurfing team competed in the Army inter-Corps championship on 5 – 9 Sep 22 and the inter-Service competition on 3 – 7 Oct 22. The kitesurfing team have also grown an instructor base during the year comprising two Senior Instructors and one Level 2 instructor.
Regions Division
The Regions Division organised and provided the Race Officers for the annual Meet at Lymington in Spring 2022.
A team of retired members took part in the Army Offshore Regatta, alongside serving soldiers, winning the Cruising Class for the second year running.
The RE Sail Training Week was supported by retired members sailing in company with the sail training fleet providing training for a serving skipper, yachting advice, setting courses and a Skippers Quiz.
A detailed review of Chatham Branch including the Medway moorings and facilities was completed in 2022. The review concluded that the effort required to ensure that the Branch was financially self-supporting, managerially sustainable, and made an effective contribution to our Charitable Object could not be justified. A concomitant reduction in the presence of serving Royal Engineers at Chatham over the past 15 years led to a decision to close Chatham Branch and divest the Club of the moorings. There has been resistance to this amongst a small number of members closely associated with the Branch so, to ensure proper process, closure implementation has taken significantly more Club officer time and effort than had been anticipated and has yet to conclude. Our understanding of the situation at the end of 2022 is that members of Chatham Branch are developing a proposal to take over the moorings as a separate entity. If this came to fruition the Club would gift the moorings which have now depreciated to negligible financial value. All current members of Chatham Branch would remain Club members in their current membership categories should they so wish.
Central Club Activities
Club Administration. Implementation of Sailing Club Manager (SCM) to support Club administration began in 2021 and has gathered pace in 2022. It is now our formal mechanism for managing membership, communications, chartering, events and voting. In parallel with the transfer of our accountancy support from Headquarters Royal Engineers to a civilian accountant, we have also taken the opportunity to rationalise and update the direct debit management system used for raising subscriptions and Hulls Fund donations. The new system will be implemented in early 2023 and will interface with SCM, thereby adding functionality to handle member payments for all Club charges. At our AGM in 2022 members voted to allow future General Meetings to be held in either wholly virtual form or hybrid form, and for voting to take place remotely as appropriate. These changes have been reflected in amendments to our Constitution that have now been formally accepted by the Charity Commission, and will allow the Club to continue to take advantage of some of the mechanisms we were forced to adopt temporarily during Covid restrictions.
Strategic Direction. During the course of 2022 it became increasingly apparent that the rate of societal change as it affects the Club has been much greater than had been envisaged only a year previously when REYC Strategy 2021 was published. Whilst the Strategy and its associated Goals remain highly relevant, we realized that we need to do more, and more quickly, than had ever been expected. This was reflected in a Future Club Philosophy paper aired at the 2022 AGM and in a number of discussions and working groups examining how we maintain REYC’s relevance to the needs of the modern Corps of Royal Engineers and its personnel. The breadth of our self-examination has embraced our membership model, the balance between the needs of serving and non-serving members, and associated governance matters. This debate will continue into 2023 and early indications are that radical change will probably produce insignificant benefit and would still not address many current challenges. A more evolutionary approach seems appropriate although,
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Trustees’ Report for the year ended 31 December 2022
speed will still need to be of the essence if we are to shape a Club to meet the demands of tomorrow, rather than be left behind worrying about today’s issues. Thus the Strategy remains in place and in use as a guiding document, but close monitoring of progress towards achieving its specific Goals has been paused while we’ve focused on meeting immediate future needs.
Annual Dinner. Our annual dinner has customarily been in Chatham and has been a formal event at which all members of the Club can come together to socialise and where prizes, Corps colours and awards are presented. It has normally been held in the evening of the day on which the AGM takes place. In recent years costs have becoming increasingly prohibitive to the extent that in 2021 the dinner was reluctantly cancelled, although the AGM still went ahead at Chatham. In 2022 we needed to look for a new solution and we opted to hold both our AGM and our annual dinner at Hornet Services Sailing Club at Gosport. This is now the home of our offshore activities and not too distant from a centre for Service inshore sailing at Thorney Island. We chose a date to coincide with the end of the RE Sail Training Week (RESTW), at which all major disciplines of the Club co-located at Thorney Island, arranged a dinner that was less formal than in previous years and therefore more inclusive for Club members, and encouraged as many as possible to attend both the AGM and dinner. The new format and location were both deemed successful and more costeffective and we are likely to try and repeat the formula in future years.
Key Appointments. All Club appointments are voluntary. Last year’s report observed that, with the Army shrinking, individual commitments were growing and it was becoming increasingly difficult for serving members to administer the Club. Nothing has changed in the interim and the trend is clear. Our preference remains for serving members to hold the majority of appointments in order to promote succession planning based on knowledge and to maintain a clear understanding of the outlook and needs of today’s serving members who sit at the heart of our Charitable Object. Nonetheless, we could not currently run the Club without non-serving members taking up key roles which would otherwise be vacant. In the past year retired members have made significant contributions as Honorary Secretary, Honorary Treasurer and we shortly hope to appoint a retired member as Membership Secretary, a role which has been filled on an interim basis for much of the year. We still encourage retired members to support and mentor serving personnel in Club appointments and provide cover when they are deployed on operations.
Overall Activity Days. The breakdown for the 2022 season in terms of ‘person sailing days’ using REYC owned yachts, dinghies and boards is as follows:
| Total Training Days | |
|---|---|
| Inshore | 388 |
| Offshore | 547 |
| Total | 935 |
Unit sponsored adventure training and the individual use of JSASTC yachts and facilities, together with larger expeditions, are not shown here. It should be noted that these activities are often enabled by the Club: expeditions are either led and organised by Club Members or indirectly supported via experience and qualifications of individuals developed through use of REYC assets. Whilst the total number of Offshore Training Days is almost identical to the total for 2021 it was achieved with just one REYC yacht and masks the pent up demand that might have been fulfilled if we had been able to replace our second yacht immediately. We anticipate a step change in 2023 when we will revert to a two yacht fleet. On the other hand, Inshore training days more than doubled in number in comparison with 2021 and have now recovered to pre-Covid levels.
2022 FINANCIAL REVIEW
Principal Funding
REYC’s income continues to come from member subscriptions, voluntary donations, Royal Engineer Corps’ grants, and grants provided through the Army Sailing Association, e.g. Army Welfare and Nuffield Trust.
The Club remains solvent. The financial plan for all divisions of the Club is reviewed at least annually to better inform any decisions to change spending, review the yacht replacement plan, and to support bids for external grants.
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Trustees’ Report for the year ended 31 December 2022
Migration of the Chatham Branch account to being supported by the Corps Treasurer was achieved early in 2022. Accountancy support for all Club funds was subsequently transferred from the Corps Treasurer to MS Friday in the second half of the reporting period and was complete by year end.
Reserves Policy
REYC has a 10 Year Financial Plan, reviewed annually, reflecting income and expenditure including equipment replacement funded through the Hulls Fund and other sources. This is now aligned with our 10 Year Strategy, although we have also considered the impact of two full yacht replacement cycles, which takes our current long term financial plan beyond the 10 year period.
REYC’s reserves policy is to maintain a minimum of 6 months’ operating capital held as cash.
The Club invests the balance of its cash in a low risk, interest earning vehicle. In 2023, following the transition of our accountancy support, this will be reviewed to ensure we are investing as productively as possible.
Insurance
The Trustees are satisfied that appropriate policies remain in place and will continue to seek best value for money.
Balance Sheet
The accumulated funds decreased by £19,894 to £397,374 (2021: increased by £73,693 to £417,268). This decrease is mostly accounted for by an excess of expenditure over income within the Offshore Division (largely due to lack of charter income because of a focus on competition in a year when we had only one yacht), and by a significantly smaller excess of expenditure over income within the Inshore Division.
Notes to the Statement of Financial Activities and Balance Sheet provide supplementary information against each funding activity.
Fund Designation
The Club maintains one Unrestricted, four Designated and two Restricted Funds.
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Unrestricted . The Main Fund supports REYC activity not included in the other Club Funds in furtherance of the Object.
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Designated.
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Chatham. The Chatham Fund supports the Object of the REYC principally on the River Medway and, when financially able, wider Club activity. Income to the Fund comes from Member mooring fees and other local activity.
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Inshore. The Inshore Fund supports the Object of the REYC in inshore sailing, namely dinghy, board and kite sailing. Inshore boats and equipment are included in this Fund. It receives grants from the Main Fund as well as grants through the Army Sailing Association. Charter fees are currently not levied for the use of dinghies and boards.
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Offshore. The Offshore Fund supports the Object of the REYC in offshore sailing, namely sail training, adventurous training, sporting activities and cruising. The Club-owned yachts are included in this Fund. It receives grants from the Main and Hulls Funds, as well as from the Army Sailing Association. Charter fees, set annually, are paid for the use of Club yachts.
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Hulls. The Hulls Fund supports the REYC’s equipment replacement programme. A percentage, set annually, of all charter fees provides income to this Fund.
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Trustees’ Report for the year ended 31 December 2022
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Restricted.
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Hulls. The Hulls Fund (Restricted) also supports the REYC’s equipment replacement programme. Income to this Fund comes from Members’ donations and legacies and, as such, must be accounted for separately from the Hulls Fund (Designated). Gift Aid is claimed from Her Majesty’s Revenue & Customs.
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H&M Trust. The H&M Trust (Charity Number 272391) was set up by the owner of H&M Engineering, formerly in Chatham Dockyard, and makes annual grants to the REYC to support the costs incurred by non-commissioned soldiers of the Corps of Royal Engineers when undertaking sailing of any discipline. Accordingly, it is managed as a Restricted Fund.
OBSERVATIONS ON THE FINANCIAL STATEMENT
The Trustees make the following observations:
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a. General. From an accounting perspective our total expenditure in 2022 exceeded our income by £23,886. As mentioned above (under Balance Sheet) some of this arises from reduced charter income in a year in which we only had one offshore yacht which was predominantly campaigned on the race circuit rather than chartered, and an excess of expenditure over income within Inshore. The remainder is predominantly due to a reduction in grant income in 2022 compared with 2021
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b. Hulls Fund (Restricted). Action is still to be taken to claim Gift Aid on eligible Hulls Fund donations from 2017.
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c. Debtors and Creditors. The Trustees are satisfied that Debtors (£795) and Creditors (£6,317) are being managed properly. The Creditors total includes a sum of £2,000 grant funding to Inshore to be returned in 2023.
Principal Risks and Uncertainties
Trustees maintain a Risk Register of the strategic, business and operational risks to which the Charity is exposed and receive regular updates from the Main Committee.
The two major risks noted in last year’s report (loss of bosun support and the closure of Dolphin Pool) are now being managed as routine business within the Offshore division. Although the final outcome is yet to emerge we are confident that our close alliance with the Army Sailing Association and Hornet Services Sailing Club will bear fruit.
As noted earlier in this report, the major risk we face as we move into 2023 is the increasing pace of societal change and the manifestation of this amongst the serving sailing community we seek to support. As with overcoming many problems, recognition of the facts is fundamental to over-coming the issues. We are very clear about what we face and are being proactive in mitigating the risk by adapting the way in which we operate, but we also recognise that there is a balance to be struck in achieving this without damaging the character and ethos of the Club, which is also important to many of our members.
The other risk we face is the shift of focus away from managing the Club for the benefit of the majority to address the protracted resistance of a few members who will not accept a Main Committee decision on Chatham Branch. In May 2022 the Main Committee decided to close the Branch for a variety of reasons, the detail of which is not pertinent to this report. This was endorsed by the Trustees who also agreed to a proposal that the Club should divest of its moorings on the River Medway. Since then significant management time and effort has been diverted into the matter to the inevitable detriment of the wider Club. Our efforts continue to resolve this issue and to mitigate the wider risk.
Plans for the future
The Trustees will continue to support the objectives of the Charity whilst endeavouring to ensure the Club remains aligned with the needs of the Corps and Army and continually changing societal norms.
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Trustees’ Report for the year ended 31 December 2022
CONCLUSION
We emerge from Covid 19 in a stronger position than we were pre-pandemic, having taken the opportunity to build resilience into our operations and administration by embedding many of the new ways of working forced upon us by Covid restrictions. Our accountancy support is now also more resilient and better suited to a charity of our size and nature, and the adoption of Sailing Club Manager is progressively allowing the coalescing of our administrative and financial management. On the water we continue to address the need to manage and maintain our offshore fleet without dedicated military bosun support, but have sufficient confidence in the future to have embarked (in early 2023) upon replacing the second yacht, sold a year previously. Our engagement with sailors across the Corps, both REYC members and others, is arguably better than it has been for many years and this bodes well for continued achievement of our charitable Object.
Approved by the Trustees on 6 September 2023 and signed on their behalf
Colonel (Retd) R C Hendicott MBE Chair, Board of Trustees Royal Engineer Yacht Club
Ch*rlty number: 1178311 Page 10 The Royal Engineer Yacht Club Financial Ststements for the year ended 31 December 2022 Bookkeepels SLitement I have Prepared the financial statements on pages 11 to 21 for the year ended 31 December 2022 frolll the acwunling records of the Royal Enginw YaGht Club. Name.. Tr Wilson Signature.. Date Ms Friday Accountsncy Semces Independent Examiners Report I report to the Iruslees on my eXaMinatn of the xcounls of The Royal Engineer Y&ht Club for the ye2r ended 31st December 2022. which are set OLrt on pages 11 10 21 As the charivs Iruslees, you are fesp)nsible for the preparation of the accounts in accordance wlh the requirements of the Chanties Act 2011 {'the Acri. The audrt requirement of Section 43121 of the Charrties Act 1993 does not apply since the chaws gross income dces not exceed £250,000. Hence this report is as a result of Independent Examinalton. I report in respect of my examination of the Trust's accounts carned out under section 145 of the 2011 Act and in carrwng out my examination, I have folk1 all the applicable Directions given by the Charty ComMissn under section 14515}Ibl of the Aci. I have completed my examinatron. I firM that no malerkil matters have come to my attention in conneelion with the examination which gives me cause lo beIve that in, any material respect.. the aUntIng record8 were not kept in accordgn¢e with 8ectn 130 of th¢ Charities Aet," or the accounts did not aecofd with the accountirrfj records", or the accounts not Comp %wth the applicable requirements concernir4J the form and content of aecounls sel out in the Charrties (Accounts and Reports) Regulations 2008 other than any reqijiremenl that the accounts give a trje and fairf view wthich is not a matter consKlered as part of an independent examination. I have no concerns and have come across no other matters in conneclw wrth the examination lo which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Slgned by Ihe Independent Examiner: Dats: ZI 2023 Chris Deacon FCCA Vision Accounting Fortis House Cothey Way Ryde P033 1 QT
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The Royal Engineer Yacht Club
Statement of financial activities for the year ended 31 December 2022
| Note Income and endowments from: Donations & Legacies 3 Subscriptions 4 Charter Hire 5 Grants 6 Other Income 7 Investment Income 8 Total Income Expenditure on: Charitable activities 10 Total Expenditure Net income / (expenditure) before revaluations Gains / (losses) on revaluations of fixed assets 19 Net income / (expenditure) before transfers Transfers Hulls (Designated) Offshore (Designnated) Net movement in funds for the year Reconciliation of funds Total funds at 1 January 2022 Total funds at 31 December 2022 |
Unrestricted Restricted Total Total funds funds funds funds 2022 2022 2022 2021 £ £ £ £ 250.00 4,153.00 4,403.00 128,521 13,845.00 - 13,845.00 13,969 1,143.00 - 1,143.00 12,440 20,465.00 - 20,465.00 28,906 21,223.88 - 21,223.88 9,490 119.47 - 119.47 40 57,046.35 4,153.00 61,199.35 193,366 80,932.50 161.35 81,093.85 157,192 80,932.50 161.35 81,093.85 157,192 -23,886.15 3,991.65 -19,894.50 36,174 - - - 37,519 -23,886.15 3,991.65 -19,894.50 73,693 78,000.00 - - - -78,000.00 - - - -23,886.15 3,991.65 -19,894.50 73,693 344,723.24 72,545.00 417,268.24 343,575 320,837.09 76,536.65 397,373.74 417,268 |
|---|---|
All activities relate to continuing operations.
The notes on pages 13 to 21 form part of these financial statements.
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The Royal Engineer Yacht Club
Balance sheet as at 31 December 2022
| Note Fixed assets Tangible assets 19 Current assets Prepayments Debtors 20 Cash at bank Creditors:amounts failing due within one year 21 Liabilities Net current assets Net assets Charity Funds Unrestricted funds 22 Restricted funds 22 Total funds |
Year Ended 31 December 2022 £ £ 172,313.35 2,430.09 795.00 228,151.93 231,377.02 -4,316.63 -2,000.00 225,060.39 397,373.74 320,837.09 76,536.65 397,373.74 |
Year Ended 31 December 2021 £ £ 253,795 120,261 44,368 164,649 -1,176 163,473 417,268 344,723 72,545 417,268 |
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The financial statements were approved by the Trustees on the date:
and signed on their behalf, by: Chair of Board of Trustees Board Secretary
The notes on pages 13 to 21 form part of these financial statements.
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Notes to the financial statements as at 31 December 2022
1 General administrative information
The Royal Engineer Yacht Club is a Charitable Incorporated Organisation in England & Wales with the registration number 1178311. The address of the registered office is RE Corps Funds, Brompton Barracks, Dock Road, Chatham, Kent, ME4 4UG. The Charity’s principal objectives continued to be the promotion of the efficiency of the Armed Forces of the Crown by: provision and support of sailing facilities: increasing physical fitness through sailing: encouraging Esprit de Corps through representation in sporting competitions; and providing an association which supports the Corps of Royal Engineers.
2 Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the second edition of the 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) (2019).
The Royal Engineer Yacht Club meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
2.2 Preparation of the accounts on an going concern basis
The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis in accounting in preparing the financial statements.
2.3 Fund Accounting
General unrestricted funds represent unrestricted income which is expendable at the discretion of the furtherance of the objects of the Charity.
Designated funds represent amounts which have been put aside out of unrestricted funds at the discretion of the Trustees to meet specific purposes.
Restricted funds represent income which is allocated by the donor for specific purposes. These are explained in detail on page 8 in the Trustees' report.
Investment income, gains and losses are allocated to the appropriate fund.
2.4 Income
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.
Membership subscriptions which gives a member the right to buy services or other benefits are recognised as income earned from the provision of goods and services as income from charitable activities.
The Royal Engineer Yacht Club
Page 14
Notes to the financial statements as at 31 December 2022
2 Accounting policies
2.5 Expenditure
Liabilities are recognised as expenditure as soon as there is an obligation to committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis.
Cost of charitable activities includes the apportionment of support costs shown in note 10.
2.6 Tangible fixed assets and depreciation
Assets costing greater than or equal to £500 are capitalised and valued at historic cost. Depreciation is charged on assets using a straight - line basis over their estimated life on the following basis:
Yachts not depreciated Windsurfing and Dinghy 10%-100% per annum Other equipment 10%-20% per annum
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.8 Cash at bank and in hand
Cash at bank and 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.
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
2.10 Financial instruments
The Charity 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.
2.11 Donated services and facilities
This is no longer applicable for 2022. Previously, donated services, were included in income at a valuation which is an estimate of the financial cost borne by the donor, where the cost is measurable. This amount is matched by donated expenditure.
The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report.
Page 15
The Royal Engineer Yacht Club
Notes to the financial statements
for the year ended 31 December 2022
| Notes to the financial statements for the year ended 31 December 2022 |
||||
|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | |
| funds | funds | funds | funds | |
| 2022 | 2022 | 2022 | 2021 | |
| 3 Donations&Legacies | ||||
| £ | £ | £ | £ | |
| Donation Hulls Fund | - | 4,153 | 4,153 | 3,978 |
| Donations | 250 | - | 250 | - |
| Donated Assets | - | - | - | 46,830 |
| Donated Services (note 9) | - | - | - | 77,713 |
| 250 | 4,153 | 4,403 | 128,521 | |
| 4 Subscriptions Income from Donations and Legacies in 2021 comprised |
£ £ £ £124,543 unrestricted and £3,978 restricted |
£ | ||
| REYC | 13,845 | 13,845 | 13,969 | |
| 5 Charter Hire (Offshore) Yacht Charter Hire Income Income from subscriptions in 2021 was all unrestricted. |
£ 1,143 |
£ - |
£ 1,143 |
£ 12,440 |
| 1,143 | - | 1,143 | 12,440 | |
| 6 Grants £ RE Sports Board 3,600 H&M Trust - HQ Garrison Windsurfing 15,025 Welfare Grant Offshore 1,840 Charter hire (offshore) income in 2021 was all unrestricted. |
£ - - - - |
£ 3,600 - 15,025 1,840 |
£ 16,000 2,500 10,406 - |
|
| 20,465 | - | 20,465 | 28,906 | |
| 7 Other income £ Mooring Fees 8,920 RE Dinner 1,372 Property Sales (Inshore) 6,700 Property Sales (offshore) 500 Blue Ensign Permits 115 Conservancy - Chatham 1,280 Cyprus Inshore training camp 1,745 Sundry Income- Beaufort Cup Entry 464.88 Yacht Charter 10% contribution to Hulls (D) 127 Income from Grants in 2021 comprised £26,406 unrestricted and £2,500 |
£ - - - - - - - - - restricted. |
£ 8,920 1,372 6,700 500 115 1,280 1,745 465 127 |
£ 9,215 - 275 - - - - - - |
|
| 21,223.88 | - | 21,223.88 | 9,490 | |
| Other income in 2021 was all unrestricted. 8 Investment income |
£ | £ | £ | £ |
| Bank interest receivable | 119.47 | - | 119.47 | 40 |
| Investment income in 2021 was all unrestricted. | ||||
| Total income | 57,046.35 | 4,153.00 | 61,199.35 | 193,366 |
Page 16
The Royal Engineer Yacht Club
Notes to the financial statements
for the year ended 31 December 2022
| Administrative salaries Note Yacht Club 11 Offshore 12 Inshore 13 Chatham 14 H&M Trust 15 Hulls (D) 16 11 Yacht Club Direct costs RE Dinner RE Year Book Ties Lymington Meet Support costs Insurance ASA Affiliation Staff/Account Costs Sailing Club Manager Software Blue Ensign Permits Computer Costs Travel Stationery/sundry expenses Bank charges 10 Analysis of expenditure by activities 9 Donated services and facilities |
Unrestricted Restricted Total Total funds funds funds funds 2022 2022 2022 2021 £ £ £ £ - - - 77,713 - - - 77,713 Direct costs Grant funding of activities Support costs Total Total 2022 2022 2022 2022 2021 £ £ £ £ £ 4,407.85 - 8,601.09 13,008.94 16,519 3,450.77 - 17,486.45 20,937.22 123,655 4,355.70 18,625.00 8,728.97 31,709.67 9,659 9,070.03 - 1,526.64 10,596.67 5,976 - 161.35 - 161.35 1,383 - - 4,680.00 4,680.00 - 21,284.35 18,786.35 41,023.15 81,093.85 157,192 Unrestricted Restricted Total Total funds funds funds funds 2022 2022 2022 2021 £ £ £ £ 1,651.00 - 1,651.00 - 1,715.21 - 1,715.21 1,933 622.00 - 622.00 - 419.64 - 419.64 349 4,407.85 - 4,407.85 2,282 418.99 - 418.99 2,514 890.00 - 890.00 - 2,009.71 - 2,009.71 8,160 2,578.80 - 2,578.80 3,563 78.00 - 78.00 - 338.03 - 338.03 - 1,648.91 - 1,648.91 - 358.41 - 358.41 - 280.24 - 280.24 - 8,601.09 - 8,601.09 14,237 13,008.94 - 13,008.94 16,519 |
|---|---|
Yacht Club expenditure in 2021 was all unrestricted.
Page 17
The Royal Engineer Yacht Club
Notes to the financial statements for the year ended 31 December 2022
| Unrestricted | Restricted | Total | Total | |
|---|---|---|---|---|
| funds | funds | funds | funds | |
| 12 Offshore | 2022 | 2022 | 2022 | 2021 |
| £ | £ | £ | £ | |
| Direct costs | ||||
| Race Fees | 1,147.12 | - | 1,147.12 | 1,071 |
| Mooring Fees | 2,303.65 | - | 2,303.65 | 3,383 |
| Planned Maintenance | 0.00 | - | 0.00 | 9,940 |
| 3,450.77 | - | 3,450.77 | 14,394 | |
| Support Costs | ||||
| Maintenance | 8,946.59 | - | 8,946.59 | 25,512 |
| Promotional/advertising | 200.00 | - | 200.00 | - |
| RYA registration Trojan | 90.00 | - | 90.00 | - |
| R&R equipment | 49.99 | - | 49.99 | - |
| Fuel | 370.22 | - | 370.22 | - |
| Bosuns costs | 94.30 | - | 94.30 | - |
| Certification & Inspection | - | - | - | 949 |
| Lift & Cradle | 3,950.00 | - | 3,950.00 | 1,881 |
| Insurance | 902.26 | - | 902.26 | 2,270 |
| Travel and accommodation | 343.09 | - | 343.09 | - |
| Yacht sale costs | - | - | - | - |
| Property/Equipment disposal | 1,010.00 | - | 1,010.00 | - |
| Depreciation | 1,530.00 | - | 1,530.00 | 936 |
| Donated Services | - | - | - | 77,713 |
| 17,486.45 | - | 17,486.45 | 109,261 | |
| 20,937.22 | - | 20,937.22 | 123,655 | |
| Offshore expenditure in 2021 was all unrestricted | ||||
| 13 Inshore | £ | £ | £ | £ |
| Direct costs | ||||
| REYC Inshore training events | 2,203.99 | - | 2,203.99 | - |
| Travel & accommodation | 4,451.71 | - | 4,451.71 | - |
| Medway YC Sail Training | 1,300.00 | - | 1,300.00 | 2,754 |
| 7,955.70 | - | 7,955.70 | 2,754 | |
| Support Costs | ||||
| Equipment maintenance | 561.00 | - | 561.00 | 391 |
| New Equipment purchased | 7,381.30 | - | 7,381.30 | - |
| Subscriptions | 250.00 | - | 250.00 | - |
| Disposals | 10,219.67 | - | 10,219.67 | - |
| Depreciation | 5,342.00 | 5,342.00 | 6,514 | |
| 23,753.97 | - | 23,753.97 | 6,905 | |
| 31,709.67 | - | 31,709.67 | 9,659 |
Inshore expenditure in 2021 was all unrestricted.
During the year 2022, £18,625 was received in total from grant funding for training and equipment.
£3,600 towards the Inshore training Cyprus, although the grant was initially £5,600, £2,000 was returned in 2023 and is shown as a liability. £15,025, used towards expenditure of £7,381 and asset additions totalling £13,819.02, for new equipment.
Page 18
The Royal Engineer Yacht Club
Notes to the financial statements for the year ended 31 December 2022
| 14 Chatham Direct costs Mooring Maintenance Mooring Pontoon Fees Crown Estates Peel Ports Conservancy Port of Sheerness Support costs Insurance Mooring Manager Expenses Sundry Costs Depreciation Bad Debt write-off 15 H&M Trust Grants 16 Hulls Fund Support Costs Yacht Sale Cost 17 Net Income / (Expenditure) |
Unrestricted Restricted Total Total funds funds funds funds 2022 2022 2022 2021 £ £ £ £ 3,839.20 - 3,839.20 - 1,400.00 - 1,400.00 - 1,600.00 - 1,600.00 1,600 2,230.83 - 2,230.83 - - - - 2033 9,070.03 - 9,070.03 3,633 67.02 - 67.02 402 755.42 - 755.42 105 260.20 - 260.20 1,043 199.00 - 199.00 793 245.00 - 245.00 - 1,526.64 - 1,526.64 2,343 10,596.67 - 10,596.67 5,976 - 161.35 - 1,383 - 161.35 - 1,383 4,680.00 - 4,680.00 - 4,680.00 - 4,680.00 - £ £ -19,894.50 68,598 |
|---|---|
This is stated after charging: Depreciation of tangible fixed assets: - owned by the charity 7,071 8,243
During the year, no Trustees received any remuneration (2022 - £ Nil).
During the year, no Trustees received any benefits in kind (2022 - £ Nil).
During the year, no Trustees received any reimbursement of expenses (2022 - £ Nil).
Page 19
The Royal Engineer Yacht Club
Notes to the financial statements
for the year ended 31 December 2022
| Notes to the financial statements for the year ended 31 December 2022 |
||
|---|---|---|
| Total | Total | |
| Year Ended | Year Ended | |
| 31 December | 31 December | |
| 18 Staff costs | 2022 | 2021 |
| £ | £ | |
| Staff costs were as follows: | ||
| Wages and salaries | 835.71 | 1,830 |
| Social security costs | 0 | 337 |
| 835.71 | 2,167 | |
| The average monthly number of employees during the year was as follows: Management and administration of the fund |
No. | No. |
| 1 | 1 | |
| No employee received remuneration amounting to more than £60,000 in either year. |
19 Tangible fixed assets
| Cost or valuation At 1 January 2022 Additions Disposals Revaluation |
Windsurfing Other Yachts and Dinghy Equipment £ £ £ 165,501 101,818 62,027 - 14,819 - -78,000 -10,220 -1,010 - - - |
Total funds Total funds 2022 2021 £ £ 329,346 244,997 14,819 46,830 -89,230 - - 37,519 |
|---|---|---|
| At 31 December 2022 | 87,501 106,417 61,017 |
254,935 329,346 |
| Depreciation At I January 2022 Charge for the year Disposals |
- 66,855 8,696 - 5,342 1,729 - - - |
75,551 67,308 7,071 8,243 - |
| At 31 December 2022 | - 72,197 10,425 |
82,622 75,551 |
| Net book value At 31 December 2022 |
87,501 34,220 50,592 |
172,313 253,795 |
| At 31 December 2021 | 165,501 34,963 53,331 |
253,795 177,689 |
| 20 Debtors | £ £ |
|
| Other debtors | 795 120,281 |
|
| Amounts falling due within one year: Liability, Army Grant repayment Other creditors 21 Creditors: |
£ £ 2,000.00 - 4,316.63 1,176 |
|
| 6,316.63 1,176 |
Page 20
The Royal Engineer Yacht Club
Notes to the financial statements for the year ended 31 December 2022
22 Statement of funds - current year
| Designated Funds Chatham Offshore Inshore Hulls Unrestricted funds REYC Total unrestricted funds Restricted Funds H&M Trust Townsend Trust Hulls Total Statement of funds - prior year Designated Funds Chatham Offshore Inshore Hulls Unrestricted funds REYC Restricted Funds H&M Trust Townsend Trust Hulls Total |
Brought forward Income Expenditure Gains/ (Losses) Transfers Carried Forward £ £ £ £ £ £ 23,860 10,200.00 -10,596.67 - - 23,463.33 137,998 4,197.88 -20,937.22 - -78,000.00 43,258.66 36,236 27,070.00 -31,709.67 - - 31,596.33 47,945 127.00 -4,680.00 - 78,000.00 121,392.00 246,039 41,594.88 -67,923.56 - 0.00 219,710.32 98,684.24 15,451.47 -13,008.94 - - 101,126.77 344,723.24 57,046.35 -80,932.50 - - 320,837.09 4,318.00 - -161.35 - - 4,156.65 - - - - - - 68,227.00 4,153.00 - - - 72,380.00 72,545.00 4,153.00 -161.35 - - 76,536.65 417,268.24 61,199.35 -81,093.85 - - 397,373.74 Brought forward Income Expenditure Gains/ (Losses) Transfers Carried Forward £ £ £ £ £ £ 20,621 9,215 -5,976 - - 23,860 161,094 100,559 -123,655 - - 137,998 37,859 275 -9,569 - 7,761 36,236 10,426 - - 37,519 - 47,945 230,000 110,049 -139,290 37,519 7,761 246,039 46,125 76,839 -16,519 - -7,761 98,684 3,201 2,500 -1,383 - - 4,318 - - - - - - 64,249 3,978 - - - 68,227 67,450 6,478 -1,383 - - 72,545 343,575 193,366 -157,192 37,519 - 417,268 |
|---|---|
Page 21
The Royal Engineer Yacht Club
Notes to the financial statements for the year ended 31 December 2022
23 Analysis of net assets between funds
Current year
| Tangible fixed assets Current assets Creditors due within one year Prior year Tangible fixed assets Current assets Creditors due within one year |
Unrestricted Restricted Total Total funds funds funds funds 2022 2022 2022 2021 £ £ £ £ 172,313.35 - 172,313.35 253,795 154,840.37 76,536.65 231,377.02 164,649 -6,316.63 - -6,316.63 -1,176 320,837.09 76,536.65 397,373.74 417,268 Unrestricted Restricted Total Total funds funds funds funds 2021 2021 2021 2020 £ £ £ £ 253,795 - 253,795 177,689 92,104 72,545 164,649 166,830 -1,176 - -1,176 -944 344,723 72,545 417,268 343,575 |
|---|---|
24 Related party transactions
All transactions with related parties are disclosed in the Trustees Report and notes to the accounts.
25 Post balance sheet events
The cost for the preparation of the accounts and financial statements for 2022 were not accrued. The cost of the preparation of the financial statements by Ms Friday Accountancy were £1,200 The Independent Examination by Vision Accounting was £600 including VAT