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2021-03-31-accounts

The Royal Navy Club

of 1765 and 1785 (United 1889)

Surplus Fund

ANNUAL REPORT AND FINANCIAL STATEMENTS

for the year ended

31 March 2021

Registered Charity Number 248962

The Royal Navy Club of 1765 and 1785 (United 1889)

INDEX TO THE ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 March 2021

Page in
report
Legal and administrative details 1
Report of the Trustees 2-3
Statement of Trustees’ responsibilities 4
Report of the Independent examiner 5
Statement of fnancial activities 6
Balance sheet 7
Accounting policies 8
Notes to the fnancial statements 9-12

The Royal Navy Club of 1765 and 1785 (United 1889) LEGAL AND ADMINISTRATIVE DETAILS

TRUSTEES

Rear Admiral N S R Kilgour CB (Chairman) Rear Admiral I R Henderson CB CBE DL Commodore J G F Cooke OBE Royal Navy (retired January 2021) Commander A C Gordon-Lennox Royal Navy Commodore P J Thicknesse Royal Navy Commodore M J D Walliker CBE (appointed January 2021)

ADDRESS OF PRINCIPAL CONTACT

The Secretary Royal Navy Club of 1765 & 1785 Commander B P Boxall-Hunt OBE Royal Navy Trafalgar 2 Elston Meadow Crediton Devon EX17 3SZ

REGISTERED CHARITY NUMBER 248962

INDEPENDENT EXAMINER

Malvern Carvell 21 Higher Kingston Yeovil Somerset BA21 4AS

BANKERS Holts Military Bank Victoria Road Farnborough GU14 7NR

INVESTMENT MANAGERS

Quilter Cheviot One Kingsway London WC2B 6AN ACTUARIAL AND INVESTMENT ADVISORS Hewitt Bacon & Woodrow Limited Prospect House Abbey View

Registered Charity No. 248962

Page 1

The Royal Navy Club of 1765 and 1785 (United 1889)

LEGAL AND ADMINISTRATIVE DETAILS

St Albans AL1 2QU

Registered Charity No. 248962

Page 1

The Royal Navy Club of 1765 and 1785 (United 1889) TRUSTEES’ REPORT

The trustees submit their report and the financial statements of The Royal Navy Club of 1765 and 1785 (United 1889) Surplus Fund for the year ended 31 March 2021.

LEGAL AND ADMINISTRATIVE INFORMATION

The Charity’s legal and administrative details are as shown on page 1.

TRUSTEES

The Trustees on page 1 are those who have served throughout the year. Trustees must be members of the Club. They are appointed by the existing Trustees taking account of candidates recommended by the membership of the Club at an Annual General Meeting. At their first meeting after the election of new Trustees, the Trustees elect their Chairman. On appointment new Trustees are briefed by the Chairman of the Trustees and the Club Secretary. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. In accordance with Rule V of the Club Trustees are exofficio members of the Committee. The trustees meet three times a year.

CONSTITUTION, OBJECTS AND POLICIES

The surplus fund of The Royal Navy Club of 1765 and 1785 (United 1889) is constituted by a Trust Deed dated 24 August 1927, as amended by further deeds dated 10 July 1996 and 14 November 2006. The Club registered as a charity with the Charity Commission on 26 September 1966. In fact the charitable activities predate these modern legal steps: in February 2015 the Club celebrated the 250[th] year of their continuance.

The Royal Navy Club of 1765 and 1785 (United 1889) Surplus Fund is associated with The Royal Navy Club of 1765 and 1785 (United 1889) General Fund. Members of the Royal Navy Club contribute annual subscriptions to the General Fund.

The current object of the Club’s Surplus Fund is to provide financial assistance to needy widows, widowers, orphaned children, siblings and dependants of former members of The Royal Navy Club of 1765 and 1785 (United 1889). The fund is not dependant on donations and continues to seek to meet projected disbursements through income derived from its investment portfolio. Charitable disbursements during the year amounted to £28,829 (2020 £28,876). Every effort is made to identify potential beneficiaries, for example exhorting members in written communications and on social occasions to report possible cases of need, placing an advertisement in the ARNO yearbook and writing to next of kin of deceased members and former members.

PUBLIC BENEFIT STATEMENT

The Trustees confirm that they have referred to the guidance in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities.

Registered Charity No. 248962

Page 2

The Royal Navy Club of 1765 and 1785 (United 1889)

TRUSTEES’ REPORT

INVESTMENT REVIEW

On 15[th] May 2014 the Club appointed Quilter Cheviot as Investment Manager. The Trustees maintain an Investment Policy to obtain a reasonable long-term overall return using a balanced approach, with moderate risk and obtaining as much income as risk allows. The value of investments under management at 31 March 2021 was £ 1,320,070 (2020 £1,080,005)

Registered Charity No. 248962

Page 2

The Royal Navy Club of 1765 and 1785 (United 1889) TRUSTEES’ REPORT

FINANCIAL REVIEW

Total income, for the year was £40,325, a decrease of £6,696 on prior year. It is anticipated that future dividends received will be in the region of £40,000 per year. Expenditure for the year amounted to £41,531, a decrease of £2,578 on the prior year. As a result the operating deficit for 2020/21 was £1,206 (2019/20 £2,912 surplus).

There was an unrealised gain on the investment portfolio of £240,065 (2019/20 loss of £205,301), so that the net movement in funds for the year was an increase of £238,859 (2019/20 decrease £202,389).

At the end of the financial year the charity’s funds had increased from £1,130,991 to £1,369,850. The Trustees consider the charity’s financial position to be sustainable.

RESERVES POLICY

The projected disbursements and the performance of the investments portfolio are reviewed on an annual basis by the Trustees to ensure that the reserves are maintained at an appropriate level.

The purpose of the permanent endowment is to maintain the level of the original capital introduced to set up the Surplus Fund in 1765. The amount of this original capital cannot be identified but in 1793 it stood at £1,300. In 1998 the Trustees, having taken professional advice, set the permanent endowment at the sum of £100,000. The Trustees reviewed the figure of £100,000 in 2007 and increased it to £150,000 having sought and obtained the Charity Commission’s concurrence. A further review was carried out in 2018/19 and the Trustees increased the fund to £200,000. The Trustees have the intention of a making a further review every ten years. The income generated from this endowment is not restricted and is included within unrestricted funds.

RISK MANAGEMENT

The Trustees examine annually 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.

PLANS FOR THE FUTURE

The Trustees will continue their efforts to identify potential beneficiaries. The changes to the definition of beneficiaries made in November 2006 has widened the scope for increased charitable disbursements.

Approved by the Trustees on 12 May 2021 and signed on their behalf by:

Signed on Original

Registered Charity No. 248962

Page 3

The Royal Navy Club of 1765 and 1785 (United 1889) TRUSTEES’ REPORT

Rear Admiral N S R Kilgour CB

Chairman of Trustees

Registered Charity No. 248962

Page 3

The Royal Navy Club of 1765 and 1785 (United 1889) STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Annual report and Financial Statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Charity law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the Charity’s state of affairs at the end of the financial year and of its income and expenditure for that year.

In preparing those financial statements, the trustees are required to:

The trustees are responsible for maintaining 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, Accounting regulations and SORP. 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.

Registered Charity No. 248962

Page 4

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE ROYAL NAVY CLUB OF 1765 AND 1785 (UNITED 1889)

I report on the accounts of the Charity for the year ended 31 March 2021, which are set out on pages 6 to 12.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

examine the accounts under section 145 of the 2011 Act;

to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and

to state whether particular matters have come to my attention.

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

to keep accounting records in accordance with section 130 of the 2011 Act; and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act

have not been met

Signed on Original

MALVERN CARVELL 21 Higher Kingston Yeovil Somerset BA21 4AS

12 May 2021

Registered Charity No. 248962

Page 5

The Royal Navy Club of 1765 and 1785 (United 1889)

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating and Income and Expenditure account) 31 March 2021

N
ot
es
INCOMING RESOURCES
Voluntary income:
Donations, gifts and
legacies
2
Investment income
3
TOTAL INCOMING
RESOURCES
RESOURCES EXPENDED
Charitable expenditure
Grants payable
4
Support costs (including
Governance)
4
TOTAL RESOURCES
EXPENDED
NET OPERATING
(DEFICIT)/SURPLUS
Other recognised gains or
losses
Realised (losses)/gains on
investment assets
6
Unrealised gains/(losses)
on investment assets
6
Transfers between funds
NET MOVEMENT IN
FUNDS
Fund balance at 1 April
2020
FUND BALANCE AT 31
MARCH 2021
8		 Unrestrict
ed
general
funds
2021
£
1,000
39,325
40,325
28,829
12,702
41,531
(1,206)
-
240,065
-
238,859
930,991
1,169,850		 Endowme
nt
funds
Total
funds
Total
funds
2021
£
2021
£
2020
£
-
1,000
1,138
-
39,325
45,883
-
40,325
47,021
-
28,829
28,876
-
12,702
15,233
-
41,531
44,109
-
(1,206)
2,912
-
-
-
-
240,065
(205,301)
-
-
-
-
238,859
(202,389)
200,000
1,130,99
1
1,333,380
200,000
1,369,85
1,130,991		 Endowme
nt
funds
Total
funds
Total
funds
2021
£
2021
£
2020
£
-
1,000
1,138
-
39,325
45,883
-
40,325
47,021
-
28,829
28,876
-
12,702
15,233
-
41,531
44,109
-
(1,206)
2,912
-
-
-
-
240,065
(205,301)
-
-
-
-
238,859
(202,389)
200,000
1,130,99
1
1,333,380
200,000
1,369,85
1,130,991
Registered Charity No. 248962 Page 7

The Royal Navy Club of 1765 and 1785 (United 1889)

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating and Income and Expenditure account) 31 March 2021

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All funds are unrestricted including the permanent endowment fund of £200,000, which is included in funds brought forward and carried forward.

All gains and losses have been dealt with in the above statement.

The notes on pages 9 to 12 form part of these accounts.

Registered Charity No. 248962

Page 7

The Royal Navy Club of 1765 and 1785 (United 1889)

BALANCE SHEET 31 March 2021

Notes
Unrestric
ted2021
£

FIXED ASSETS
Investments
6
1,120,07
0
CURRENT ASSETS
Debtors
7
-
Cash at bank and in hand
8
50,680
50,680
CREDITORS: Amounts falling due
within one year
9
900
NET CURRENT ASSETS
49,780
TOTAL ASSETS LESS CURRENT
LIABILITIES
1,169,85
0
ACCUMULATED FUNDS
Unrestricted funds
1,169,85
0
Endowment funds
10
-
10
1,169,85
0		 Endowm
ent
2021
Total
2021
£
200,000
1,320,07
0

-
-
-
50,680
-
50,680
-
900
-
49,780
200,000
1,369,85
0

-
1,169,85
0
200,000
200,000
200,000
1,369,85
0
 Total
2020
£
1,080,00
5
-
51,861
51,861
875
50,986
1,130,49
1
930,991
200,000
1,130,99
1

The financial statements were approved by the Trustees for issue on 12 May 2021 and signed on their behalf by:

Signed on Original

Rear Admiral N S R Kilgour CB Chairman of Trustees

Signed on Original

Registered Charity No. 248962

Page 7

The Royal Navy Club of 1765 and 1785 (United 1889)

BALANCE SHEET 31 March 2021

Commander B P Boxall-Hunt OBE Royal Navy

Secretary

The notes on pages 9 to 12 form part of these accounts.

Registered Charity No. 248962

Page 7

The Royal Navy Club of 1765 and 1785 (United 1889) ACCOUNTING POLICIES

BASIS OF ACCOUNTING

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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The following accounting policies have been applied consistently in dealing with items which are considered material to the financial statements.

INVESTMENT INCOME

Investment income is accounted for in the period in which the Charity is entitled to receipt.

INCOME RECOGNITION

All incoming resources are included in the SOFA when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the Charity being notified of an impending distribution or the legacy being received.

EXPENDITURE RECOGNITION

Expenditure is included for an accruals basis. Grants payable are provided in full in the year in which they are awarded. Support costs comprise costs for processing grants and applications, including support to actual and potential applicants, and includes costs for the running of the Charity itself as an organization.

FIXED ASSET INVESTMENTS

Investments are included at closing mid-market value at the balance sheet date. Any gain or loss on revaluation is taken to the Statement of Financial Activities. The investment management fees are reflected in the valuation of the investments in the year.

TAXATION

The Surplus Fund is exempt from corporation tax through its status as a charity and therefore no current or deferred corporation tax are included in these accounts.

UNRESTRICTED FUNDS

Details of the nature and purpose of each fund is set out in note 10.

Registered Charity No. 248962

Page 8

The Royal Navy Club of 1765 and 1785 (United 1889)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

1
NET INCOME FOR THE YEAR
Net income is stated after charging:
Independent Examiner’s remuneration – examination
Independent Examiner’s remuneration – other services
2
DONATIONS AND LEGACIES RECEIVED
Donations including GiftAid recovered
3
INVESTMENT INCOME
Dividends and interest
Interest on cash deposits
4
ANALYSIS OF CHARITABLE EXPENDITURE
Grants payable
Grants to memorialists
Support costs
Salaries
Printing, stationery and postage
Telephone and internet
Rent
Computing
Insurances
Meetings
Marketing and publicity
Other expenses		 2021
£
550
350
2021
£
1,000
2021
£
38,923
402
39,325
2021
£
28,829
7,923
1,412
344
750
1,008
-
267
6
-
11,710		 2020
£
550
350
2020
£
1,138
2020
£
45,075
808
45,883
2020
£
28,876
7,987
1,507
209
700
1,020
291
401
598
1,204
13,917

Registered charity No.248962

Page 9

The Royal Navy Club of 1765 and 1785 (United 1889) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

5
GOVERNANCE COSTS
Independent Examiner’s fees
Trustees expenses
6
FIXED ASSET INVESTMENTS
Investments at market value comprised
Equities and fxed interest
Alternative investments
Cash on deposit
Market value at 1 April 2020
Gain realised on transfer of portfolio
Acquisitions at cost
Revaluation gains/(losses)
Market value at 31 March 2021
Historical cost at 31 March 2021		 2021
£
925
67
992
2021
£
1,319,854
-
216
1,320,070
1,080,005
-
-
240,065

1,320,070
1,227,065		 2020
£
850
466
1,316
2020
£
825,903
220,995
33,107
1,080,00
5
1,285,30
6
-
-
(205,301)
1,080,00
5
1,134,16
3

The investments comprise a portfolio held with Quilter Cheviot and comprise a range of investments as detailed above.

Registered charity No.248962

Page 10

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

The Royal Navy Club of 1765 and 1785 (United 1889)

Registered charity No.248962

Page 10

The Royal Navy Club of 1765 and 1785 (United 1889)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

7
DEBTORS
Amount due from General Fund
8
CASH AT BANK
Current account
Deposit account
Ratesetter account
9
CREDITORS
Amounts due within one year
Accruals – Independent Examiner
10
FUNDS
Unrestricted
funds
At 1 April 2020
930,991
Movement in funds in the year
238,859
At 31 March 2021
1,169,850

Unrestricted funds comprise those funds which the Trustees are free to use in accordance with the Charity’s objective.

The purpose of the permanent endowment fund is to maintain the level of the original capital introduced into the Surplus Fund in 1765. The amount of this

Registered charity No.248962

Page 11

The Royal Navy Club of 1765 and 1785 (United 1889)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

original capital cannot be identified but in 1793 it stood at £1.300. The income generated from this endowment is not restricted and is included within unrestricted funds. In 1997 the Trustees, having taken professional advice, set the permanent endowment fund at the sum of £100,000. This was reported to the Charity Commission which made no objection to this figure being adopted. The Trustees reviewed the figure in 2007 and increased it to £150,000 having sought and obtained the Charity Commission’s concurrence. A further review took place in the 2019 and the Trustees increased the fund to £200,000. The Trustees have the intention of making a further review every ten years.

Registered charity No.248962

Page 11

The Royal Navy Club of 1765 and 1785 (United 1889)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

11
ANALYSIS OF NET ASSETS
Unrestricted
Funds
2021
Investments
1,120,070
Net current assets
49,780
At 31 March 2021
1,169,850		 Endowme
nt funds
2021
£
Total
2021
£
200,000
1,320,07
0
-
49,780
200,000
1,369,85
0

12 RELATED ORGANISATIONS

The Royal Navy Club of 1765 and 1785 (United 1889) Surplus Fund is associated with The Royal Navy Club of 1765 and 1785 (United 1889) General Fund. Members of the Royal Navy Club contribute annual subscriptions to the General Fund. During this year a donation of £500 (2020: £500) was made from the General Fund to the Surplus Fund. As at 31 March 2021 the General Fund owed £nil to the Surplus Fund in respect of costs incurred (2020: £nil).

Registered charity No.248962

Page 12