Charity number: 250079
Fleet Air Arm Museum
Trustee’s report and financial statements
for the year ended 31 March 2023
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Fleet Air Arm Museum Charity number: 250079
Contents
Legal and administrative information ...................................................................................................................... 3 Foreword .................................................................................................................................................................. 4 Performance Report ................................................................................................................................................. 5 Accountability Report .............................................................................................................................................. 7 Statement of Corporate Trustee’s and Accounting Officer’s responsibilities ......................................................... 8 Independent auditors' report to the Trustee of the Fleet Air Arm Museum........................................................... 9 Statement of financial activities ............................................................................................................................. 12 Balance Sheet ......................................................................................................................................................... 13 Cash flow statement .............................................................................................................................................. 14 Notes to the financial statements .......................................................................................................................... 15
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Fleet Air Arm Museum Charity number: 250079
Legal and administrative information
Charity number 250079 Registered office H M Naval Base PP66 Portsmouth Hampshire PO1 3NH Director General and Matthew Sheldon (appointed 1 December 2023) Accounting Officer Dominic Tweddle (resigned 30 November 2023) Sole Corporate Trustee National Museum of the Royal Navy Accountants Compass Accountants Limited Venture House, The Tanneries, East Street, Titchfield, Hampshire PO14 4AR Auditors PKF Littlejohn LLP 15 Westferry Circus, Canary Wharf, London, E14 4HD Bankers National Westminster Plc 130 Commercial Road, Portsmouth PO1 1ES
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Fleet Air Arm Museum Charity number: 250079
Trustee’s annual report
The Trustee presents their report and the audited financial statements of the charity for the year ended 31 March 2023. The Trustee has adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
Foreword
The charitable objects of the Fleet Air Arm Museum trust (the Trust), as established in its Trust Deed dated 22 June 1966 and as amended by the scheme dated 28 September 2012, are:
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a) The promotion of education and learning of Naval Service and Auxiliaries personnel and other members of the public about the history, deeds and traditions of aviation in the Royal Navy.
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b) The promotion and enhancement of military efficiency by assisting recruitment and retention and fostering the esprit de corps of the men and women who are serving in the Naval Service and Auxiliaries.
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c) The commemoration and remembrance of those members of the Royal Naval Air Service and Fleet Air Arm who have died while on active service; and the encouragement of public recognition of the sacrifice made by such persons.
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Fleet Air Arm Museum Charity number: 250079
Performance Report
Overview
The Trust was established in June 1966, and on 26 January 2017, the National Museum of the Royal Navy (“the National Museum”) (charity number 1126283) was appointed as its sole corporate Trustee. The Trust holds the heritage assets and reserves of the museum which is operated by the charitable entity, NMRN Operations (charity number: 1169061), a wholly owned subsidiary of the National Museum, under an operator agreement. This realises the benefits of operation of the Fleet Air Arm Museum within a large organisation, improving visitor experience, safeguarding and enhancing access to the collections and providing greater cohesion in the delivery of the charitable objectives.
Plans for future periods
Future expenditure will be limited to governance and support costs and any grants awarded to NMRN Operations under the operator agreement to deliver work to support the charity’s objects.
Financial Review
Statement of Financial Activities for the Year Ended 31 March 2023
Total incoming resources for the Fleet Air Arm Museum trust in 2022-23 amounted to £40,000 (2021-22: £12,287). These resources were received as rental income and as charitable donations.
Total resources expended for 2022-23 amounted to £888,826 (2021-22: £81,043) relating to depreciation, governance and support costs, and grant funding to NMRN Operations to enable delivery of a major redevelopment of the Aircraft Carrier experience for the summer 2022.
After gains on the revaluation of fixed assets of £443,158 the net movement in funds for the year was a decrease of £405,668 (2021-22: increase £544,418).
Balance sheet
The net assets as at 31 March 2023 amounted to £7,253,158 (31 March 2022: £7,658,826).
Reserves
The Trustees regularly monitor the levels of the Trust's reserves. The Trust retains a ‘free reserve’ in accordance with Group policy, defined as the amounts shown as Net Current Assets in the accounts and which are attributable to Unrestricted Funds. The Group policy is that there is no requirement to accumulate free reserves within the subsidiary charities and trusts and that any reserves held will be appropriately used, as approved by the Board, for the furtherance of the Trust’s charitable objects.
As at 31 March 2023, the Trust's free reserves (defined as net current assets attributable to unrestricted reserves) stood at £172,598 (31 March 2022: £148,431). The role of the Trust is solely to hold the heritage assets and reserves of the Fleet Air Arm Museum which it will grant to NMRN Operations as and when required until they are expended or a nominal sum remains. The ongoing operating costs are undertaken under an operator agreement by a separate group company, NMRN Operations, therefore the Trustee is content that the going concern basis continues to apply and that the free reserves are at an appropriate level.
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Fleet Air Arm Museum Charity number: 250079
A new designated fund of £10,000 has been created from a generous legacy received from Margaret Siddons to support the Barracuda Rebuild Project, enabling it to be moved into full public view, thereby enhancing the visitor experience.
Investment Policy
The Trust does not invest as a strategic means of raising income but nonetheless ensures that cash reserves are maintained in interest bearing accounts. The Trust’s investment policy seeks to produce the best possible financial return within an acceptable level of risk.
Auditors
The accounts have been audited by PKF Littlejohn LLP. So far as the Trustee and Accounting Officer are aware, there is no relevant audit information of which the charity’s auditors are unaware. Trustees have taken all the steps necessary to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.
On behalf of the board
Admiral Sir Philip Jones Chair on Behalf of the Board of Trustees
Matthew Sheldon Director General and Accounting Officer
Date: 19[th] December 2023 Date: 19[th] December 2023
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Fleet Air Arm Museum Charity number: 250079
Accountability Report
Trustee’s Report and Governance Statement
This report sets out the arrangements for the governance of the Fleet Air Arm Museum.
The Trustee has due regard to guidance issued by the Charity Commission on public benefit and in its charitable objects, the charity seeks to promote the education of the general public about the history, deeds and traditions of the Naval Service and encourage the public to commemorate, honour and preserve the memory of those members of the Naval Service who have died on active service.
This report demonstrates how the system of governance and internal control is maintained within the Fleet Air Arm Museum and how the major risks to which the charity is exposed, as identified by the Trustee, have been reviewed and systems have been established to mitigate those risks.
The Governance Framework
The Fleet Air Arm Museum is a charity registered with the Charity Commission (registration number: 250079). It is governed by its Declaration of Trust dated 22 June 1966 and as amended by the schemes dated 27 December 1973, 24 November 1982, 10 April 1985, 22 March 1994, 28 September 2012, 20 January 2017, which incorporate its charitable objects, the powers of the Trust and provides for the appointment and reappointment of Trustees.
The Trustee ensures the distinct legal responsibilities and charitable objectives of the Trust are fulfilled within an overall policy and strategy framework. The day-to-day operation of the Trust within that framework is delegated to the Director General and Accounting Officer and to the Executive Directors of the National Museum of the Royal Navy.
The charity has a sole Corporate trustee (the National Museum of the Royal Navy).
System of internal control
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the charity’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically.
The review of the effectiveness of the system of internal controls is exercised through the National Museum’s Audit and Governance Committee. This Committee is chaired by a Trustee of the National Museum’s Board of Trustees and draws expertise from other Trustees and committee members, with the executive in attendance as required. The Committee also has access to the independent accountants and internal and external auditors engaged for all companies within the Group, providing review and oversight of the financial control systems and the creation of company and consolidated group accounts.
Risk Management
The Trust’s risk register and the responses to risk are managed by the Director General and overseen by the National Museum’s Audit and Governance Committee as well as the Group’s Board.
The principal risks faced by the Trust centre around security of and safeguarding its assets.
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Fleet Air Arm Museum Charity number: 250079
Statement of Corporate Trustee’s and Accounting Officer’s responsibilities for the year ended 31 March 2023
The Trustee and the Accounting Officer are responsible for preparing the Trustee’s Annual 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 Trustee 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 the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustee is 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 2019 (FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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 operation.
The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.
Admiral Sir Philip Jones Chair on Behalf of the Board of Trustees
Matthew Sheldon Director General and Accounting Officer
Date: 19[th] December 2023 Date:19[th] December 2023
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Fleet Air Arm Museum Charity number: 250079
Independent auditors' report to the Trustee of the Fleet Air Arm Museum
Opinion
We have audited the financial statements of the Fleet Air Arm Museum (the ‘charity’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31 March 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the trustee’s annual report, other than the financial statements and our auditor’s report thereon. The trustee is responsible for the other information contained within the trustee’s annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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Fleet Air Arm Museum Charity number: 250079
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the trustee’s report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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• we have not received all the information and explanations we require for our audit.
Responsibilities of the trustee
As explained more fully in the trustee’s responsibilities statement, the trustee is responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustee is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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We obtained an understanding of the charity and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, sector research and application of cumulative audit knowledge and experience.
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We determined the principal laws and regulations relevant to the charity in this regard to be those arising from the Charities Act 2011, Charities (Accounts and Reports) Regulations 2008, Financial Reporting Standard 102 and the Charities SORP.
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We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the charity with those laws and regulations. These procedures included, but were not limited to enquiries of management, review of minutes and review of legal and regulatory correspondence.
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We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that there was a potential for management bias in the allocation of support costs against charitable activity categories. We addressed this through reviewing the method used for reasonableness and re-performing the calculation to ensure it had been performed accurately in line with the stated method.
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We also identified potential for management bias in the valuation of the land and buildings. We reviewed the latest available valuation report, considered qualifications and experience of the management’s expert, and challenged inputs and assumptions applied. We also challenged management’s assertion that there has been no material movement in valuation since the last external revaluation was performed.
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Fleet Air Arm Museum Charity number: 250079
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We also identified potential for management bias in the depreciation rate applied to tangible fixed assets, and we addressed this by considering the useful economic life applied for the types of asset held, and re-performing the calculation to ensure it had been performed accurately in line with the stated method.
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We also identified potential for management bias in the timing of recognition of income from legacies. We addressed this through review of all legacy correspondence and receipts up to the date of approval of the financial statements, to ensure correct treatment under the Charities SORP, including consideration of the accounting period in which income should be recognised.
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We also identified potential for management bias in the valuation of donated heritage assets on the Balance Sheet. We challenged the valuation methodology, including inputs and considering whether assumptions are reasonable and appropriate. We also challenged management’s annual review for impairment.
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As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charity’s trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustee those matters we are required to state to it in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustee as a body, for our audit work, for this report, or for the opinions we have formed.
PKF Littlejohn LLP Statutory Auditor
15 Westferry Circus Canary Wharf London E14 4HD
Date: 20 December 2023
PKF Littlejohn LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006
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Fleet Air Arm Museum Charity number: 250079
Statement of financial activities
For the year ended 31 March 2023
| Unrestricted funds Notes £ Income from: Donations and legacies Grants and donations 2 - Legacies 3 10,000 Rental income 30,000 Total income 40,000 Expenditure on: Charitable activities Collections and asset management 4 129,422 Grants payable 6 - Total expenditure 129,422 Net income/(expenditure) (89,422) Transfers between funds - Other recognised gains/(losses): Gains/(losses) on revaluation of fixed assets 8 221,579 Net movement in funds 132,157 Reconciliation of funds: Funds brought forward 3,865,019 Total funds carried forward 3,997,176 |
Restricted 2023 Unrestricted Restricted funds Total funds funds £ £ £ £ - - 120 - - 10,000 - - - 30,000 12,167 - - 40,000 12,287 - 123,589 253,011 24,788 - 635,815 635,815 56,255 - 759,404 888,826 24,788 56,255 (759,404) (848,826) (12,501) (56,255) - - - - 221,579 443,158 306,587 306,587 (537,825) (405,668) 294,086 250,332 3,793,807 7,658,826 3,570,933 3,543,475 3,255,982 7,253,158 3,865,019 3,793,807 |
2022 Total £ 120 - 12,167 12,287 24,788 56,255 81,043 (68,756) - 613,174 544,418 7,114,408 7,658,826 |
|---|---|---|
All recognised gains and losses are included in the statement of financial activities
The notes on pages 15 to 22 form an integral part of these financial statements.
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Fleet Air Arm Museum Charity number: 250079
Balance Sheet as at 31 March 2023
| Notes Fixed assets Tangible assets 8 Heritage assets 9 Current assets Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Net assets Funds Unrestricted funds Designated funds Restricted funds 12 Total funds |
2023 £ 5,895,980 866,588 6,762,568 2,500 500,433 502,933 (12,343) 490,590 7,253,158 3,987,176 10,000 3,255,982 7,253,158 |
2022 £ 5,700,000 866,588 6,566,588 5,000 1,149,655 1,154,665 (62,427) 1,092,238 7,658,826 3,865,019 - 3,793,807 7,658,826 |
|---|---|---|
The financial statements were approved by the board and signed on its behalf by
Admiral Sir Philip Jones Chair on behalf of the Board of Trustees
Date: 19[th] December 2023
The notes on pages 15 to 22 form an integral part of these financial statements.
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Fleet Air Arm Museum Charity number: 250079
Cash flow statement
for the year ended 31 March 2023
| Cash flows from operating activities: Net cash (used in)/provided by operating activities (Decrease)/Increase in cash and cash equivalents in the year Cash and cash equivalents at 1 April 2022 Cash and cash equivalents at 31 March 2023 Net (expenditure)/income for the reporting period Depreciation and impairment Decrease/(Increase) in debtors (Decrease)/Increase in creditors Net cash provided by/(used in) operating activities |
2023 (649,232) (649,232) 1,149,665 500,433 (848,826) 247,178 2,500 (50,084) (649,232) |
2022 8,782 8,782 |
|---|---|---|
| 1,140,883 | ||
| 1,149,665 | ||
| (68,756) 22,293 (4,999) 60,244 8,782 |
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Fleet Air Arm Museum Charity number: 250079
Notes to the financial statements for the year ended 31 March 2023
1. Accounting policies
1.1. Charity information
The Fleet Air Arm Museum is a registered charity, number 250079.
The Fleet Air Arm Museum meets the definition of a public benefit entity under section 34 of FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy.
The principal objectives of the charity are detailed in the Trustees report.
1.2. Basis of preparation of financial statements
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 (Charities SORP FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Practice as it applies from 1 January 2019.
The role of the Trust is solely to hold the heritage assets and reserves of the Fleet Air Arm Museum which it will grant to NMRN Operations as and when required until they are expended or a nominal sum remains. The ongoing operating costs are undertaken under an operator agreement by a separate group company, NMRN Operations, therefore the Trustee is content that the going concern basis continues to apply.
The financial statements are presented in sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
1.3. Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from investments is included in the year in which it is receivable.
Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.
1.4. Grants receivable
Revenue grants are credited to incoming resources on the earlier date of when they are received or when they are receivable. If a grant of donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the charity’s control and it is probable those conditions will be met in the accounting period.
1.5. Expenditure
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
1.6. Basis of allocation
Governance costs include those costs incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
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Fleet Air Arm Museum Charity number: 250079
Notes to the financial statements for the year ended 31 March 2023
1.7. Funds
Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of overheads and support costs.
Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.
1.8. Tangible fixed assets
Tangible fixed assets with a cost or value greater than £2,500 and a useful life exceeding one year are capitalised and included at cost revalued annually using Ministry of Defence derived indices. Heritage assets and donated assets where the cost can be reliably ascertained are capitalised at valuation.
Land and buildings are stated at a valuation of depreciated replacement cost and depreciated over the lease term. A professional valuation is obtained at least every 5 years and indices are used to reflect the change in value in the intervening years.
Depreciation is calculated at rates to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life as follows:
Freehold buildings - 50 years
No depreciation is provided on freehold land.
1.9. Heritage assets
The Museum holds collections of heritage assets which are held in support of the Museum's primary objective of effective and accessible repository both now and in the future for the heritage of the Fleet Air Arm and to raise public awareness of the history of the Service, whilst encouraging scholarship and research into Fleet Air Arm history. The main and reserve collections have not been valued and included in the financial statements due to their historic and inalienable nature and due to the specific and individual nature of the artefacts held, it is not believed to be possible to obtain a reliable value of the collection without incurring a cost disproportionate to the benefit of the information reported to readers of the accounts.
Assets acquired prior to 1 April 2000 have not been capitalised and included in the accounts but with effect from 1 April 2000, additions to the collection with a cost in excess of £2,500, have been capitalised. These assets are not depreciated due to infinite useful economic lives. An annual review for impairment is carried out in accordance with the Charities SORP, with any impairment recognised in the Statement of Financial Activities.
Heritage assets donated to the Museum with a value in excess of £2,500 are included in the accounts on the basis of internal valuations estimated by the relevant curatorial staff and determined by their experience and judgement.
Access to the collection
At any time approximately 15% of the 3D items in the collection are on display. The majority of the remaining items are held in the reserve collection in a Heritage Lottery funded climate-controlled building called Cobham Hall.
Cobham Hall opens to the public at least once a year when it attracts visitors from all over the UK to see its unique collection of aircraft, records and artefacts, many of which have never before been seen on public display. Within Cobham Hall there are over 40 historic aircraft and some five miles of shelving accommodating many of the Museum's records and artefacts.
Cobham Hall also houses one of the largest collections of Westland Helicopters including a Whirlwind and a Wasp and the Gazelle helicopter in which HRH The Duke of York learnt to fly. Other aircraft include a de Havilland Sea Vixen and the first swept wing jet aircraft to land on an aircraft carrier, a Supermarine 510. The aircraft housed in Cobham Hall are in various stages of preservation or repair.
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Fleet Air Arm Museum Charity number: 250079
Notes to the financial statements
for the year ended 31 March 2023
The collection
The collection consists of artefacts, physical, written and oral reflecting the history of the Fleet Air Arm.
By categories, numbers held are:
| By categories, numbers held are: | |
|---|---|
| Category | Count |
| Large items | 180 |
| Works of Art/Models | 1,310 |
| Documentary Archive | 1,034,148 |
| Uniforms/Badges & Insignia | 4,403 |
| Orders & Decorations | 1,556 |
| Weapons/Armaments | 194 |
| Photographs/Microfilm/Fiche | 881,452 |
| Film & Sound Recordings | 164 |
| Other | 17,265 |
Heritage assets maintenance and management policy
In October 2015, a single set of Collections Management policies for the NMRN Group was approved by the Board. These policies were the basis of a new single application to the Arts Council for Museum Accreditation to the higher standards required of a national museum collection, replacing the individual accreditations of the subsidiary museums. These policies set out a common approach for the maintenance and management of collections at different museum sites, and will be subject to regular review as directed by the Collections, Research, Learning and Access Committee (CRLA).
Acquisitions to the museums are now guided by a single Collections Development Policy (2015) and Strategy (2019); this sets out priorities and processes for acquisition. There are two principal methods of acquisition:
Acquisition by gift - Curators have authority to propose collecting in line with the 'Themes and Priorities for Future Collecting'. Offers of donations are passed to an Acquisitions Panel, chaired by the Registrar. This Committee sits on a monthly basis to assess offers. Decisions are reviewed by the Head of Collections and Research.
Acquisition by purchase - Collections and other staff can recommend and where appropriate make purchases of material from any source up to their authorisation levels in accordance with the NMRN scheme of delegation. Purchases of up to £25,000 are reviewed by the Head of Collections & Research and/or the Deputy Executive Director of Museum Operations. Any purchases of a value above £50,000 go to the Director General for assessment.
Significant acquisitions are discussed at the Collections, Research, Learning and Access Committee. This Committee also receives quarterly reports on key acquisitions and an annual report of all items added to the collection.
Subject to the approval of the Trustees, the Museum may dispose of items from the collection, although this will only happen in exceptional circumstances, for example:
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When items fall outside the Museum’s Collecting Policy or Charitable Objectives
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When an item contains a serious hazard which cannot be remediated.
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When an item is one of a significant number of duplicates
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When an item is in exceptionally poor condition which cannot be reversed and it cannot be repurposed to alternate use.
1.10. Basic financial instruments
The Museum’s financial assets and liabilities consist of cash and cash equivalents, trade debtors, trade creditors and accrued expenses. The fair value of these items approximates their carrying value due to their short term value. Unless otherwise noted, the Museum is not exposed to significant interest, foreign exchange or credit risks arising from these instruments.
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Fleet Air Arm Museum Charity number: 250079
Notes to the financial statements
for the year ended 31 March 2023
2. Grants and Donations
During the year the following grants and donations were received:
| Unrestricted funds £ Miscellaneous donations - - |
Total Unrestricted 2023 funds £ £ - 120 - 120 |
Total 2022 £ 120 |
|---|---|---|
| 120 |
3. Legacies
During the year the following legacies were received:
| Unrestricted funds £ Other legacies 10,000 10,000 |
Restricted funds £ - - |
Total Unrestricted 2023 funds £ £ 10,000 - 10,000 - |
Restricted funds £ - - |
Total 2022 £ - |
|---|---|---|---|---|
| - |
4. Collections and asset management
| Collections and asset management £ Depreciation 247,178 Loss on disposal of fixed assets - Governance and support costs 5,833 253,011 |
2023 £ 247,178 - 5,833 253,011 |
2022 £ - 22,293 2,495 |
|---|---|---|
| 24,788 |
Page 18
Fleet Air Arm Museum Charity number: 250079
Notes to the financial statements
for the year ended 31 March 2023
5. Governance and support costs
| Collections and asset management £ Accountancy fees 972 Auditors remuneration 4,814 Bank charges 34 Other costs 13 5,833 |
2023 £ 972 4,814 34 13 5,833 |
2022 972 1,489 34 13 |
|---|---|---|
| 2,495 |
6. Grants payable
| Unrestricted funds £ NMRN Operations - - |
Restricted funds £ 635,815 635,815 |
Total Unrestricted 2023 funds £ £ 635,815 - 635,815 - |
Restricted funds £ 56,255 56,255 |
Total 2022 £ 56,255 |
|---|---|---|---|---|
| 56,255 |
7. Employee costs
There were no employees directly employed by the charity in the year.
No Trustees received remuneration during the year. Trustees are reimbursed for travel expenses through the parent company, the National Museum of the Royal Navy.
8. Tangible fixed assets
| Cost or valuation At 1 April 2022 On revaluation At 31 March 2023 Depreciation At 1 April 2022 Charge for the year On revaluation At 31 March 2023 Net book values At 31 March 2023 At 31 March 2022 |
Land and Buildings £ 5,700,000 443,158 6,143,158 - 247,178 - 247,178 5,895,980 5,700,000 |
Total £ 5,700,000 443,158 |
|---|---|---|
| 6,143,158 | ||
| - 247,178 - |
||
| 247,178 | ||
| 5,895,980 | ||
| 5,700,000 |
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Fleet Air Arm Museum Charity number: 250079
Notes to the financial statements
for the year ended 31 March 2023
On 6 May 2022 the land and buildings of the Fleet Air Arm Museum were revalued by Avison Young in accordance with the stated accounting policy. The revaluation was conducted by a qualified surveyor on a depreciated replacement cost basis and in accordance with the RICS Appraisal and Valuation manual (5th Edition).
9. Heritage assets
| At valuation £ Carrying amount at 1 April 2022 866,588 Disposals - Carrying amount at 31 March 2023 866,588 |
At cost £ - - - |
Total £ 866,588 - 866,588 |
|---|---|---|
There were no additions made to the Collection in the year. There were no impairments during the year.
| Five-year summary | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | |
| Additions | |||||
| Purchases | - | - | - | - | - |
| Donations | - | - | - | - | - |
| Disposals | - | 22,293 | - | - | - |
| 10. Debtors Other debtors |
2023 £ 2,500 2,500 |
2022 £ 5,000 |
|---|---|---|
| 5,000 |
11. Creditors: amounts falling due within one year
| Accruals Deferred revenue Amounts owed to group undertakings |
2023 £ 2,938 2,500 6,905 12,343 |
2022 £ 972 2,500 58,955 |
|---|---|---|
| 62,427 |
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Fleet Air Arm Museum Charity number: 250079
Notes to the financial statements for the year ended 31 March 2023
12. Restricted funds
| Cobham Hall and Leading Edge Barracuda Gosling Fund Cobham Hall and Leading Edge Barracuda Gosling Fund |
1 April 2022 £ 2,850,000 62 943,745 3,793,807 1 April 2021 £ 2,543,413 62 1,000,000 3,543,475 |
Incoming £ - - - - Incoming £ - - - - |
Outgoing £ (123,589) - (635,815) (759,404) Outgoing £ - - (56,255) (56,255) |
Transfers £ - - - - Transfers £ - - - - |
Revaluation 31 £ 221,579 - - 221,579 Revaluation 31 £ 306,587 - - 306,587 |
March 2023 £ 2,947,990 62 307,930 |
|---|---|---|---|---|---|---|
| 3,255,982 | ||||||
| March 2022 £ 2,850,000 62 943,745 |
||||||
| 3,793,807 |
Cobham Hall and Leading Edge
This fund represents the net book value of the development at Cobham Hall and the Leading Edge exhibition, funded by donations made in the past.
Barracuda
Donations have been made towards a project to restore a Barracuda. These funds will be granted to NMRN Operations for the Barracuda project at the Fleet Air Arm Museum.
Gosling fund
The Trust received a legacy from the estate of Sir Donald Gosling to be used to upgrade the Carrier Experience at the Fleet Air Arm Museum.
13. Analysis of net assets between funds
| Tangible Net Current Fixed Assets Assets £ £ Unrestricted funds 3,814,578 172,598 Designated funds - 10,000 Restricted funds 2,947,990 307,992 6,762,568 490,590 Designated fund has been created to support the Barracuda restoration project. Tangible Net Current Fixed Assets Assets £ £ Unrestricted funds 3,716,588 148,431 Restricted funds 2,850,000 943,807 6,566,588 1,092,238 |
2023 Total £ 3,987,176 10,000 3,255,982 |
|---|---|
| 7,253,158 | |
| 2022 Total £ 3,865,019 3,793,807 |
|
| 7,658,826 |
Page 21
Fleet Air Arm Museum Charity number: 250079
Notes to the financial statements
for the year ended 31 March 2023
14. Ultimate parent undertaking
The Fleet Air Arm Museum considers the National Museum of the Royal Navy (NMRN), a charitable company (charity number 1126283, company number 06699696), to be its ultimate parent undertaking.
Control is exercised by the NMRN being the sole corporate Trustee of the Fleet Air Arm Museum.
The NMRN was established in 2008 as a holding company of the NMRN Group which operates a number of naval service museums, including the Fleet Air Arm Museum. The NMRN's strategy set out to increase the scale, scope and reach of the museum. Its vision is to become the world's most respected Naval Museum underpinned by a spirit of enterprise and adventure. The goal is to promote the public understanding of the Royal Navy past, present and future.
Consolidated accounts can be obtained from the NMRN's registered office: National Museum of the Royal Navy, HM Naval Base PP66, Portsmouth, Hampshire, PO1 3NH.
15. Analysis of changes in net funds
| Cash at bank and in hand Net funds |
Opening balance £ 1,149,665 1,149,665 |
Cash flows £ (649,232) (649,232) |
Closing balance £ 500,433 |
|---|---|---|---|
| 500,433 |
16. Related party transactions
The charity has taken advantage of the exemption under FRS 102 33.1A regarding disclosure of transactions with other NMRN group entities. There were no other related party transactions.
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