The Royal Navy Club
of 1765 and 1785 (United 1889)
Surplus Fund
ANNUAL REPORT AND FINANCIAL STATEMENTS
for the year ended
31 March 2022
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 2022
| 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 2022) Commander A C Gordon-Lennox Royal Navy Commodore P J Thicknesse Royal Navy Commodore M J D Walliker CBE (appointed January 2022)
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 Senator House 85 Queen Victoria Street London EC4V 4AB 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 2022.
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 £31,499 (2021 £28,829). 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 2022 was £ 1,419,334 (2021 £1,320,070)
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 £39,053, a decrease of £1,272 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 £45,559, an increase of £4,028 on the prior year. As a result the operating deficit for 2021/22 was £6,506 (2020/21 £1,206 deficit).
There was an unrealised gain on the investment portfolio of £69,264 (2020/21 gain of £240,065), so that the net movement in funds for the year was an increase of £62,758 (2020/21 increase £238,859).
At the end of the financial year the charity’s funds had increased from £1,369,850 to £1,432,608. 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 11 May 2022 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:
-
a) Select suitable accounting policies and then apply them consistently;
-
b) Make judgements and estimates that are reasonable and prudent;
-
c) State whether the policies adopted are in accordance with the appropriate SORP on Accounting by Charities and the Accounting Regulations and with applicable accounting standards, subject to any material departures disclosed and explained in the financial statements.
-
d) Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue.
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 2022, 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:
- which gives me reasonable cause to believe that in any material respect the requirements:
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
- No matter has come to my attention in connection with my examination, to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Signed on Original
MALVERN CARVELL 21 Higher Kingston Yeovil Somerset BA21 4AS
11 May 2022
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 2022
| 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 2021 FUND BALANCE AT 31 MARCH 2022 8 |
Unrestrict ed general funds 2022 £ 1,210 37,843 39,053 31,499 14,060 45,559 (6,506) - 69,264 - 62,758 1,169,850 1,232,608 |
Endowme nt funds Total funds Total funds 2022 £ 2022 £ 2021 £ - 1,210 1,000 - 37,843 39,325 - 39,053 40,325 - 31,499 28,829 - 14,060 12,702 - 45,559 41,531 - (6,506) (1,206) - - - - 69,264 240,065 - - - - 62,758 238,859 200,000 1,369,85 0 1,130,991 200,000 1,432,60 1,369,850 |
Total funds 2021 £ 1,000 39,325 |
|---|---|---|---|
| 40,325 28,829 12,702 |
|||
| 41,531 | |||
Registered Charity No. 248962
Page 6
The Royal Navy Club of 1765 and 1785 (United 1889)
STATEMENT OF FINANCIAL ACTIVITIES (Incorporating and Income and Expenditure account) 31 March 2022
----- Start of picture text -----
8
----- End of picture text -----
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 6
The Royal Navy Club of 1765 and 1785 (United 1889)
BALANCE SHEET 31 March 2022
| Notes Unrestric ted2022 £ FIXED ASSETS Investments 6 1,219,33 4 CURRENT ASSETS Debtors 7 - Cash at bank and in hand 8 14,324 14,324 CREDITORS: Amounts falling due within one year 9 1,050 NET CURRENT ASSETS 13,274 TOTAL ASSETS LESS CURRENT LIABILITIES 1,232,60 8 ACCUMULATED FUNDS Unrestricted funds 1,232,60 8 Endowment funds 10 - 10 1,232,60 8 |
Endowm ent 2022 Total 2022 £ 200,000 1,419,33 4 - - - 14,324 - 14,324 - 1,050 - 13,274 200,000 1,432,60 8 - 1,232,60 8 200,000 200,000 200,000 1,432,60 8 |
Total 2021 £ 1,320,07 0 - 50,680 |
|---|---|---|
| 50,680 900 |
||
| 49,780 1,369,85 0 1,169,85 0 200,000 1,369,85 0 |
The financial statements were approved by the Trustees for issue on 11 May 2022 and signed on their behalf by:
Signed on Original
Rear Admiral N S R Kilgour CB
Chairman of Trustees
Registered Charity No. 248962
Page 6
The Royal Navy Club of 1765 and 1785 (United 1889)
BALANCE SHEET 31 March 2022
Signed on Original
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 6
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 2022
| 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 Marketing and publicity Other expenses |
2022 £ 550 350 2022 £ 1,210 2022 £ 37,840 3 37,843 2022 £ 31,499 8,172 1,554 350 750 1,223 267 - 614 12,930 |
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 |
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 2022
| 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 2021 Gain realised on transfer of portfolio Acquisitions at cost Revaluation gains/(losses) Market value at 31 March 2022 Historical cost at 31 March 2022 |
2022 £ 1,050 80 1,130 2022 £ 1,419,275 - 59 1,419,334 1,320,070 - 30,000 69,264 1,419,334 1,257,066 |
2021 £ 925 67 |
|---|---|---|
| 992 | ||
| 2021 £ 1,319,85 4 - 216 1,320,07 0 1,080,00 5 - - 240,065 1,320,07 0 1,227,06 5 |
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 2022
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 2022
| 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 2021 1,169,850 Movement in funds in the year 62,758 At 31 March 2022 1,232,608 |
||
|---|---|---|
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 2022
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 2022
| 11 ANALYSIS OF NET ASSETS Unrestricted Funds 2022 Investments 1,219,334 Net current assets 13,274 At 31 March 2022 1,232,608 |
Endowme nt funds 2022 £ Total 2022 £ 200,000 1,419,33 4 - 13,274 200,000 1,432,60 8 |
|---|---|
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 (2021: £500) was made from the General Fund to the Surplus Fund. As at 31 March 2022 the General Fund owed £nil to the Surplus Fund in respect of costs incurred (2021: £nil).
Registered charity No.248962
Page 12