## The Royal Navy Club
of 1765 and 1785 (United 1889)
## Surplus Fund
ANNUAL REPORT AND FINANCIAL STATEMENTS
for the year ended 31 March 2025
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 2025
||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 financial activities|6 & 7|
|Balance sheet|8|
|Accounting policies|9|
|Notes to the financial statements|10 to 13|
The Royal Navy Club of 1765 and 1785 (United 1889) TRUSTEES’ REPORT
## TRUSTEES
Commodore M J D Walliker CBE Royal Navy (Chairman from 24[th] May 2024) Rear Admiral N S R Kilgour CB (Chairman to 24[th] May 2024, Trustee to 9[th] October 2024) Rear Admiral I R Henderson CB CBE DL Commander A C Gordon-Lennox Royal Navy Commodore P J Thicknesse Royal Navy Commodore N H C Tindal Royal Navy (from 9[th] October 2024)
## 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
_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 2025.
## 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 ex-officio 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 £16,509 (2024 £17,543). 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 (see "PLANS FOR THE FUTURE").
## 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.
## 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 2025 was £ 1,370,490 (2024 £1,364,453).
_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 £43,986, an increase of £1,581 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 £41,900, an increase of £9,726 on the prior year. This included merger costs of £9,305 (2024: £nil). As a result the operating surplus for 2024/25 was £2,086 (2023/24 £10,231 surplus).
There was an unrealised gain on the investment portfolio of £6,037 (2022/23 £118,333), so that the net movement in funds for the year was an increase of £8,123 (2023/24 increase £128,564).
At the end of the financial year the charity’s funds had increased from £1,445,028 to £1,453,151. The Trustees consider the charity’s financial position to be sustainable.
## RESERVES POLICY
The projected disbursements and the performance of the investment 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
In view of parity of grants expended with support costs, with a steady reduction in current beneficiaries and a lack of potential “new” ones, the Trustees resolved to merge the charity with the Royal Navy Benevolent Society for Officers by the end of the next financial year 2025/2026. The Charity Commission is currently considering this proposed course of action together with the release of the permanent endowment.
Approved by the Trustees on 6[th] May 2025 and signed on their behalf by:
## **Signed on Original**
Commodore M J D Walliker CBE Royal Navy
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 2025, which are set out on pages 6 to 13.
## **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
or
- 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
6[th] May 2025
_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 2025
|Unrestricted
general
funds
No
tes
2025
£
INCOMING RESOURCES
Voluntary income:
Donations, gifts and legacies
2
1,000
Investment income
3
42,986
TOTAL INCOMING
RESOURCES
43,986
RESOURCES EXPENDED
Charitable expenditure
Grants payable
4
16,509
Support costs (including
Governance)
4
25,391
TOTAL RESOURCES
EXPENDED
41,900
NET OPERATING
(DEFICIT)/SURPLUS
2,086
Other recognised gains or losses
Realised (losses)/gains on
investment assets
6
-
Unrealised gains/(losses) on
investment assets
6
6,037
Transfers between funds
-
NET MOVEMENT IN FUNDS
8,123
Fund balance at 1 April 2024
1,245,028
FUND BALANCE AT 31
MARCH 2025
10
1,253,151
|Endowment
funds
2025
£
-
-
-
-
-
-
-
-
-
-
-
200,000
200,000|Endowment
funds
2025
£
-
-
-
-
-
-
-
-
-
-
-
200,000
200,000|Total
funds
2025
£
1,000
42,986
43,986
16,509
25,391
41,900
2,086
-
6,037
-
8,123
1,445,028
1,453,151||Total
funds
2025
£
1,000
42,986|||Total
funds
2024
£
1,000
41,405|Total
funds
2024
£
1,000
41,405|
|---|---|---|---|---|---|---|---|---|---|
|||||||||||
|||||||||||
|||||||||||
|||||||||||
|||||||||||
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 13 form part of these accounts.
_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 2025
|Unrestricted
general
funds
No
tes
2024
£
INCOMING RESOURCES
Voluntary income:
Donations, gifts and legacies
2
1,000
Investment income
3
41,405
TOTAL INCOMING
RESOURCES
42,405
RESOURCES EXPENDED
Charitable expenditure
Grants payable
4
17,543
Support costs (including
Governance)
4
14,631
TOTAL RESOURCES
EXPENDED
32,174
NET OPERATING
(DEFICIT)/SURPLUS
10,231
Other recognised gains or losses
Realised (losses)/gains on
investment assets
6
-
Unrealised gains/(losses) on
investment assets
6
118,333
Transfers between funds
-
NET MOVEMENT IN FUNDS
128,564
Fund balance at 1 April 2024
1,116,464
FUND BALANCE AT 31
MARCH 2025
10
1,245,028
|Endowment
funds
2024
£
-
-
-
-
-
-
-
-
-
-
-
200,000
200,000|Endowment
funds
2024
£
-
-
-
-
-
-
-
-
-
-
-
200,000
200,000|Total
funds
2024
£
1,000
41,405
42,405
17,543
14,631
32,174
10,231
-
118,333
-
128,564
1,316,464
1,445,028||Total
funds
2024
£
1,000
41,405|||Total
funds
2023
£
500
42,420|Total
funds
2023
£
500
42,420|
|---|---|---|---|---|---|---|---|---|---|
|||||||||||
|||||||||||
|||||||||||
|||||||||||
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 13 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 2025
|_Notes_
Unrestricted
2025
£
Endowment
2025
FIXED ASSETS
Investments
6
1,170,490
200,000
CURRENT ASSETS
Debtors
7
-
-
Cash at bank and in hand
8
83,747
-
83,747
-
CREDITORS: Amounts falling due within one
year
9
1,086
-
NET CURRENT ASSETS
82,661
-
TOTAL ASSETS LESS CURRENT
LIABILITIES
1,253,151
200,000
ACCUMULATED FUNDS
Unrestricted funds
1,253,151
-
Endowment funds
10
-
200,000
10
1,253,151
200,000|Total
2025
£
1,370,490
-
83,747
83,747
1,086
82,661
1,453,151
1,253,151
200,000
1,453,151|Total
2024
£
1,364,453
-
81,825
81,825
1,250
80,575
1,445,028
1,245,028
200,000
1,445,028|
|---|---|---|
The financial statements were approved by the Trustees for issue on 6[th] May 2025 and signed on their behalf by:
## **Signed on Original**
## Commodore M J D Walliker CBE Royal Navy
Chairman of Trustees
## **Signed on Original**
Commander B P Boxall-Hunt OBE Royal Navy
Secretary
The notes on pages 9 to 13 form part of these accounts.
_Registered Charity No. 248962_
_Page 8_
## 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 9_
## The Royal Navy Club of 1765 and 1785 (United 1889) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025
|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
Other expenses|2025
£
750
500
2025
£
1,000
2025
£
41,921
1,065
42,986
2025
£
16,509
9,204
1,755
464
800
1,567
165
478
14,433
|2024
£
750
500
2024
£
1,000
2024
£
40,515
890
41,405
2024
£
17,543
8,700
1,538
374
800
1,355
154
58
12,979|
|---|---|---|
_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 2025
|5
GOVERNANCE COSTS
Independent Examiner’s fees
Merger costs
Trustees meetings and expenses
6
FIXED ASSET INVESTMENTS
Investments at market value comprised
Equities and fixed interest
Alternative investments
Cash on deposit
Market value at 1 April 2024
Gain realised on transfer of portfolio
Acquisitions at cost
Disposal at cost
Revaluation gains/(losses)
Market value at 31 March 2025
Historical cost at 31 March 2025|2025
£
1,250
9,305
403
10,958
2025
£
1,370,490
-
-
1,370,490
1,364,453
-
-
-
6,037
1,370,490
1,207,066
|2024
£
1,250
-
402
1,652
2024
£
1,364,453
-
-|2024
£
1,250
-
402|
|---|---|---|---|
||||1,652|
|||1,364,453||
|||1,246,120
-
-
-
118,333||
|||1,364,453||
|||1,207,066||
The investments comprise a portfolio held with Quilter Cheviot and comprise a range of investments as detailed above.
_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 2025
|7
DEBTORS
2025
£
Amount due from General Fund
-
8
CASH AT BANK
2025
£
Current account
17,976
Deposit account
65,771
83,747
9
CREDITORS
2025
£
Amounts due within one year
Amount due (from)/to General Fund
(164)
Accruals - Expenses
-
Accruals – Independent Examiner
1,250
1,086
10
FUNDS
Unrestricted
funds
Endowment
funds
2025
£
At 1 April 2024
1,245,028
200,000
Movement in funds in the year
8,123
-
At 31 March 2025
1,253,151
200,000||
|---|---|
|||
|||
|||
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 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 12_
## The Royal Navy Club of 1765 and 1785 (United 1889) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025
|11
ANALYSIS OF NET ASSETS
Unrestricted
Funds
2025
Endowment
funds
2025
£
Investments
1,170,490
200,000
Net current assets
82,661
-
At 31 March 2025
1,253,151
200,000|Total
2025
£
1,370,490
82,661
1,453,151|
|---|---|
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 (2024: £500) was made from the General Fund to the Surplus Fund. As at 31 March 2025 the Surplus Fund owed £336 to the General Fund in respect of costs incurred (2024: £nil).
_Registered charity No.248962_
_Page 13_