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2023-03-31-accounts

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Charity number 305037

Farnham, Fleet and Aldershot Sea Cadets

Unit 137 of The Sea Cadet Corps

Accounts and Annual Review for the year to 31 March 2023

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Trustees’ Annual Report on the Activities for the Year Ended 31 March 2023

Charity Name: Farnham, Fleet and Aldershot
Sea Cadets
Unit 137 of The Sea Cadet Corps
Charity registration number: 305037
Operational address: T/S Swiftsure
Lower Weybourne Lane
Badshot Lea
Surrey
GU9 9LQ
Bankers: Lloyds TSB
115 Victoria Rad
Aldershot
Hampshire
GU11 1JQ

Unit Management Team (Trustees)

Martin Gallop (Chair)
Neil Weston FCA (Treasurer)
Paul Abbott
PO Sean Kavanagh
Graham Cooke
Yvonne Blackburn (appointed 08.06.23)

Nature and date of the Unit’s Constitution (governing document):

The unit is governed by the Sea Cadet Regulations.

The methods adopted for recruiting new trustees, and how trustees are elected or otherwise appointed (and by whom).

Unit Management Team (UMT) members are elected annually at the AGM. UMT members are elected from persons having an interest in the unit and its operations. In the event of a vacancy arising during the year (a casual vacancy) the UMT have the power to appoint a new UMT member who will be able to serve until the date of the next AGM, at which point they will need to seek formal election if they wish to remain in post.

The Unit’s Charitable purpose as set out in its constitution is: -

To help young people towards responsible adulthood by encouraging valuable personal attributes and high standards of conduct, using a nautical theme based on the customs of the Royal Navy.

The Unit’s main activities and achievements in the financial year were: -

The new roof was completed and paid for during the year to 31 March 2023. We were fortunate to be able to receive significant government back grants and £25,000 of funding directly from MSSC. These funds, along with some reserves and additional donations that we were abler to secure mean that the Unit still has adequate finances in place.

The completion of this significant project has enabled us to grow as we continued to come out of the Covid restrictions and the increase the activities being undertaken by the cadets.

This in turn is reflected in an increase in cadet numbers.

Page 2

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

The accounts have again been prepared on an accruals basis, recognising all the assets and liabilities of the charity.

The statement of financial activities shows that the level of reserves has decreased by £8,233 in the year but there were still net current assets of approximately £13,000 and there continues to be sufficient cash and bank balances to cover the ongoing costs.

Public Benefit

The UMT continue to give due regard to the public benefit provided by the Unit in relation to the charitable purposes of the Sea Cadet movement as set out in the activities and achievements outlined above. The aim is to promote the development of young people in achieving their physical, intellectual and social potential as individuals and responsible citizens in a safe environment. To achieve this the Unit takes young people from all backgrounds, including where possible those with disabilities and develops their skills and abilities by:

Contributions are kept low in order to ensure that as many of those who wish to take part in the activities of the unit may do so.

Reserves Policy

The charity trustees’ policy aims to maintain unrestricted free reserves at a level of £10,000 to £15,000. This level is considered to be appropriate to cover several months of operating costs in the unlikely event that all sources of income cease.

Date signed as authorised by the Unit’s Management Team

………………………………………………… N A Weston FCA Unit Treasurer

………………………………………………… M Gallop Unit Chairman

Page 3

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Report of the Chairman of the Trustees

TS Swiftsure has had an interesting year, where focusing on the basics has enabled the Unit to provide the best possible cadet experience for its ship's company. With the completion of the maintenance work on the roof, it has enabled the Unit to focus on upgrading and improving the teaching space.

To make the best possible use of the site and facilities the Unit has been very creative on how the site is used and this has increased the community engagement the unit has many fold. All having a positive impact, both financially, but drawing in new interests to the Unit.

This year has seen more participation in competitions, cadets on courses, hours afloat and activities within the community. Alongside this the cadets have gained promotions and grown in number. Impressive in a year where the focus has been to maintain and get staff development on track.

The unit's Commanding Officer PO Kavanagh leads from the front and his boundless enthusiasm is great to see, but more importantly he is building a great team around him who provide the stability that the Unit and cadets need. Moving forward the Unit needs to focus on its targets of onboarding staff and up-skilling them, to achieve the cadet focused goals on boating and further cadet promotions at the higher level. This is all achievable with the current community engagement. Getting cadets afloat and gaining qualifications as they do so is a key part to the Unit sustaining the progress it has made.

The Unit is now materially in good condition, although the maintenance requirements are significant. Fortunately, the UMT are fully aware of the role and responsibilities and a good maintenance plan is in action.

The ships company of TS Swiftsure should be proud of what they have achieved against a number of adversities that they have had this year.

Martin Gallop (Chair)

Page 4

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Report of the Commanding Officer

INTRODUCTION

2023 has been very much a build back year. With greater stability in the staffing of the unit and an increase in the numbers of older cadets, it has been possible to start to offer a wider range of training and other activities at TS Swiftsure. One of the big impacts of COVID on the activities of the Unit was the loss of many senior cadets.

Visitors to the Unit will have seen changes to the fabric of the building inside and out. Much of this is down to the hard work and effort of CI Bryan Blencowe and I would like to put in writing here my heartfelt thanks for all he has done.

CADET NUMBERS

Our overall numbers have stayed very strong at 57. I would like to see this slowly increase as we have kept at these numbers without really advertising but before doing this, we need to ensure a strong, stable instructor base.

Although attendance overall has stayed high, attendance on Mondays is generally quite low and it would be good to understand why this is so that we can take the necessary steps to encourage greater attendance on that day.

2023 SUMMARY

This year has been a busy year for TS Swiftsure. We have had:

The awarding of another burgee, which is the highest award for unit efficiency, was a great team effort and I would like to say a huge BZ (well done) to all the cadets and staff.

Page 5

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Report of the Commanding Officer

PLANS FOR 2024

Cadets have asked for us to do more of the following in 2024:

In order to achieve this, we need to get our minibus back on the road and recruit a couple more staff to give us the necessary resources.

PO Sean Kavanagh (CO Farnham, Fleet and Aldershot Unit)

Page 6

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Independent Examiner’s Report on the Accounts

Report to the trustees of Farnham, Fleet and Aldershot Sea Cadets [Sea Cadet Unit Number 137] on the accounts for the year ended 31 March 2023 set out on pages 8 to 17.

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 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to:

Basis of independent examiner’s statement

My examination was carried out in accordance with 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 the 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:

Signed:
Name:
Relevant
professional
qualification(s) or
body (if any):
Address:
Date: 30.10.2023
Donald Faulkner
Harriers,FrimleyRoad
Ash Vale
Surrey,GU12 5NT

Page 7

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Statement of Financial Activities

Note
Income
Income from charitable
activities:
Subscriptions
Gift Aid
Collections
Donations
3
Grants
4
Activities
5
Fund raising
Rent received
6
Sundry sales
Other receipts
Investment income:
Interest received
Total income
Expenditure
Costs of raising funds:
Trading operations
Fundraising
Unit activities and
operation
7
Total Expenditure
Net movement in
funds for the year
Funds b/fwd
Transfer
Funds c/fwd
Unrestricted
Funds
10,818
2,408
-
33,861
9,360
1,296
-
57,743
8,170
894
30
9,094
18
66,855
4,280
-
4,280
70,808
75,088
(8,233)
510,565
502,332
Designated
Funds
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,684.
-
2,684.
Restricted
Funds
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
Funds
2023
10,818
2,408
-
33,861
9,360
1,296
-
57,743
8,170
894
30
9,094
18
66,855
4,280
-
4,280
70,808
75,088
(8,233)
513,249
-.
505,016
Total
Funds
2022
10,078
1,565
-
19,998
8,000
94
-
39,735
1,518
-
164
1,682
1
41,418
3,236
-
3,236
68,971
72,207
(30,789)
544,038
-.
513,249

Designated funds (see page 10):

The cadets’ fund represents the surplus generated through the stand easy operated for the cadets, expenditure of the fund will be agreed in association with the cadets.

The building fund is money designated by the trustees to be used for the replacement of the building roof.

Signed as authorised by the Unit’s Management Team

……………………………… N A Weston FCA (Unit Treasurer) Date ………………………………… ……………………………… M Gallop (Unit Chair) Date …………………………………

Page 8

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Statement of Financial Activities

Note
Income
Income from charitable
activities:
Subscriptions
Gift Aid
Collections
Donations
3
Grants
4
Activities
5
Fund raising
Rent received
6
Sundry sales
Other receipts
Investment income:
Interest received
Total income
Expenditure
Costs of raising funds:
Trading operations
Fundraising
Unit activities and
operation
7
Total Expenditure
Net movement in
funds for the year
Funds b/fwd
Transfer
Funds c/fwd
Comparative Information
Unrestricted
Funds
Designated
Funds
10,078.
-
1,565.
-
-.
-
19,998.
-
8,000.
-
94.
-
-.
-
39,735.
-
1,518.
-
-.
-
164.
-
1,682.
-
1.
-
41,418.
-
3,236.
-
-.
-
3,236.
-
68,971.
-
72,207.
-
(30,789)
-
512,765.
31,273.
28,589.
(28,589)
510,565.
2,684.
Restricted
Funds
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
Funds
2022
10,078
1,565
-
19,998
8,000
94
-
39,735
1,518
-
164
1,682
1
41,418
3,236
-
3,236
68,971
72,207
(30,789)
544,038
-.
513,249

Page 9

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Balance Sheet as at 31 March 2023

Notes
Fixed assets
Tangible fixed assets
10
Current assets
Stock
Debtors
11
Cash and bank balances
Total Current Assets
Current liabilities
Amounts falling due within one
year
12
Net current assets
Total assets less current
liabilities
Long term liabilities
Total funds carried forward
Represented by:
The funds of the charity
Unrestricted funds
Designated funds
Cadets’ Fund
Building Fund
Restricted funds
Capital Fund
Total charity funds
2023
2023
£
£
492,041
361
5,192
18,862
24,415
(11,440)
12,975
505,016
-
505,016
502,332
2,684
-
2,684
-
505,016
2022
2022
£
£
496,281
362
4,248
19,586
24,196
(7,228)
16,968
513,249
-
513,249
510,565
2,684
-
2,684
-
513,249
2022
2022
£
£
496,281
362
4,248
19,586
24,196
(7,228)
16,968
513,249
-
513,249
510,565
2,684
-
2,684
-
513,249
2,684
-
2,684
-
513,249
-
513,249
510,565
2,684
-
513,249

Page 10

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Notes on the accounts

1 Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements are as follows:

Basis of preparation

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).

Farnham Sea Cadets meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Preparation of the accounts on a going concern basis

It is assumed that the charity as a going concern, it has sufficient available resources (financial, volunteers and support) to continue the operations that it carries out at present and those that are planned for the foreseeable future.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the staff and trustees is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity.

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work.

Page 11

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds comprise a proportion of the costs of maintain and operating the building (which is rented out to provide additional income for the charity) and the costs of specific fundraising events held.

Expenditure on charitable activities includes the costs of trips, cadet activities and the majority of the costs of running the building.

The charity is not registered for VAT and irrecoverable VAT on expenditure is charged as a cost against the activity for which that expenditure was incurred.

No trustees received any remuneration in the year, nor were any expenses paid by the charity to members of the UMT in respect of their duties as trustees of the charity.

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs and governance costs which support the Unit’s cadet programmes and activities. Given the fact that these duties are entirely undertaken by volunteers there are no personnel costs and only minimal other expenses incurred. Such costs have been included in expenditure on charitable activities as shown in note 7.

Tangible fixed assets

Individual fixed assets are capitalised at cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows:

Freehold land and buildings – not depreciated
Boats and equipment – 15% written down value
Motor vehicles – 25% written down value
Fixtures, fittings, plant, sports equipment – 25% written down value
Diving gear and band equipment – 5% to 15% written down value
Band instruments – 5% written down value

The land is not depreciated. Land and buildings are included at a valuation as agreed by the trustees at 31 March 2017, based upon advice given by a specialist adviser. The building itself does have a finite useful life but the overall value of £450,000 as used in these accounts assumes that the value of the old building is not material.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and cash in hand includes all bank accounts (including the deposit account) and cash on hand.

Page 12

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value.

2 Legal status of the charity

The charity is an independent charity, registered at the Charity Commission under Charity Number 305037. The registered contact is the treasurer, Mr N Weston.

3 Income from donations

Bernard Sunley Trust
Farnham Institute
Aldershot Rotary Club
Farnham Round Table
MSSC
Virgin Giving
Surrey County Council
Connaught Trust
Short Mat Bowls
Farnham Town Council
Mayor’s Charity
Others
2023
-
3,000
-
1,888
25,000
-
3,000
-
-
-
-
973
33,861
2022
10,000
-
1,210
-
-
1,993
-
2,000
1,107
2,000
700
988
19,998

4 Income from grants

Business support grants totalling £9,360 relating to the year ended 31 March 2023 have been received by the unit (in the year ended 31 March 2022 the corresponding figure was £8,000).

Page 13

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

5 Charitable activities

Weekly boating and rowing
Mess dinner
Activity weekends
Other
Income
£
-
570
270
456
1,296
2023
Expenditure
£
1,081
573
-
-
1,654
Surplus /
deficit
£
(1,081)
(3)
270.
456.
(358)

The “Return to Parading/Boating” costs relate to additional expenditure to make the unit and the activities “Covid Secure” in line with the applicable guidelines in place at the time of that expenditure.

Weekly boating and rowing
Return to Parading / Boating
Other
Income
£
-
-
94
94
2022
Expenditure
£
425
294
243
962
Surplus /
deficit
£
(425)
(294)
(149)
(868)

6 Income from rent received

Auction
Container Hire
Surrey Police
Tricks and Treats
Stagestruck
Indoor Bowls
Other
2023
£
4,310
720
-
2,265
470
-
405
8,170
2022
£
-
720
185
-
-
300
313
1,518

Page 14

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

7 Analysis of expenditure on charitable activities

Note
Special events
5
Hall hire
Training
Rates and water rates
Light and heat
Telephone and internet
Postage, printing and stationery
Property maintenance
8
Motor expenses
Equipment repairs
9
Insurance
Other costs
Depreciation
Profit on disposal of fixed assets
Governance costs
8 Property repairs
Electrical work
Sewage system works
Heater service
Roof repair
Scaffolding hire
Cleaning and waste disposal
Other items
2023
£
1,654
160
-
397
5,830
764
300
49,934
999
529
2,785
792
6,676
(84)
72
70,808
2023
£
5,800
2,276
726
32,374
4,500
6,083
803
52,562
2022
£
962
896
324
309
1,439
899
401
50,407
1,556
1,290
2,897
594
6,853
-
144
68,971
2022
£
1,263
388
1,380
44,702
-
4,185
1,142
53,060

Total cost allocated to charitable activities £49,934 (2022: £50,407), costs of generating funds £2,628 (2022: £2,653) and governance costs £ nil (2022: £ nil).

9 Equipment repairs

Equipment repairs
Trailer repairs
Fire alarm and extinguisher
service
Other items (all <£100.00)
2023
£
-
587
-
587
2022
£
686
402
346
1,434

Total cost allocated to charitable activities £529 (2022: £1,290), costs of generating funds £29 (2022: £72) and governance costs £29 (2022: £72).

Page 15

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

10 Fixed assets

Freehold
Land &
Buildings
Cost or valuation:
As at 1 April 2022
450,000
Additions
-
Disposals
-
As at 31 March 2023
450,000
Depreciation
As at 1 April 2022
-
Charge for the year
-
Disposals
-
As at 31 March 2023
-
Net book value
As at 31 March 2023
450,000
As at 1 April 2022
450,000
Fixtures &
Fittings
Cost or valuation:
As at 1 April 2022
14,845
Additions
2,742
Disposals
-
As at 31 March 2023
17,587
Depreciation
As at 1 April 2022
12,131
Charge for the year
1,374
Disposals
-
As at 31 March 2023
13,505
Net book value
As at 31 March 2023
4,082
As at 1 April 2022
2,714
Additions
Mattresses
Beds
Kayak racking
Computer equipment
Other items (all <£100.00)
Leasehold
Land &
Buildings
-
-
-
-
-
-
-
-
-
-
Band
Equipment
31,943
-
-
31,943
11,061
1,596
-
12,657
19,286
20,882
Plant &
Machinery
2,535
-
-
2,535
1,962
108
-
2,070
465
573
Sports &
Dive
Equipment
7,978
-
(1,554)
6,424
6,707
243
(1,248)
5,702
722
1,271
2023
2,385
357
-
-
-
2,742
Motor
Vehicles &
Trailers
Boats &
Associated
Equipment
13,171
42,992
-
-
-
-
13,171
42,992
10,896
24,426
569
2,788
-
-
11,465
27,212
1,706
15,780
2,275
18,566
Total
2023
Total
2022
563,464
562,378
2,742
1,086
(1,554)
-
564,652
563,464
67,183
60,330
6,676
6,853
(1,248)
-
72,611
67,183
492,041
496,281
496,281
508,357
2022
-
-
561
525
-
1,086
Boats &
Associated
Equipment
42,992
-
-
42,992
24,426
2,788
-
27,212
15,780
18,566
Total
2022
562,378
1,086
-
563,464
60,330
6,853
-
67,183
496,281
508,357

In addition, the Unit has beneficial, ongoing use of 1 further Quest and 1 Rigiflex with an outboard motor (that is used as a safety boat) but does not hold title to them.

Page 16

Accounts for the year to 31 March 2023

Farnham, Fleet and Aldershot Sea Cadets

11 Debtors

1 Debtors
Debtors, rents and gift aid receivable
Other debtors
Prepayments and accrued income
2 Creditors due within one year
Trade creditors
Short term loan
Other creditors and accruals
2023
£
1,090
-
4,102
5,192
2023
£
1,253
4,500
5,687
11,440
2022
£
1,694
-
2,554
4,248
2022
£
3,490
-
3,738
7,228

12 Creditors due within one year

13 Taxation

As a charity, Farnham, Fleet and Aldershot Sea Cadets Unit is exempt from tax on income and gains to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

Page 17