2023-03-31-accounts

MSSC MARWE socieTY& SEA CADETS ITrE REPORT & ACCOUNTS For the year ended 31 March 2023 Admlral of thè Sea Cadet Corps: Her Roy81 Highness The ￿1n￿SS Royal President.. Admiral Sir Phllip Jones GCB DL IngSocl&ty &&ac4￿1&￿￿￿rItyl￿1stw8￿1 ￿￿91p$st￿lsa￿lnk9llJ￿sCCYJ7

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 Ovèrview Marine Society and Sea Cadets (MSSC) is a charity that helps launch young people for life and supports aspiring and serving seafarers lo realise their potential. With a clear aim to be the leading maritime charity for youth developmènt and lifelong learning. MSSC is commrtted lo investing in and supporting all of our beneficiaries so they ¢an achieve their potential whatever path they choose. Our vision for Sea Cadets: 'Everyyounq person launched lor life" We seek lo achieve this by: Inspiring young people to achieve their potential through challenge and nautical adventur8 guided by the customs and tradrtions of today's Royal Navy. Our vision for Marln8 Soclety: "Every cuirent and futuie sedfarer and manlime profgssion81 skilled for life" We seek lo achieve this by.. Enabling current and future seafarers to realise their potential through leaming and career development. We know that our work has a transformational impact on both individuals and the communities they live and work in, positlV61y affecting their life Chances and benefiting their communities and society as a whole. The pandemic brought our work into Sharp focus. requiring us lo respond rapidly to changing needs and to be highly agile in our delivery, moving almost everything online without a pause. Two years on from th8 launch of our R8generation Plan, designed to revive our activities after the pandemic, we have gone far beyond getting 'back to normal,. Thanks to incrediblé delivery by our amazing volunteers, swelled by the many new volunteers that have joined us over the period, our sea cadets are back lo enjoying the vast range of activities offered through the full Sea Cadets Experience, while our outreach programmes hav8 8ngaged more young people than ever. At the same time, we have continued to develop our lifelong learning and support for seafarers and maritime professionals. including an expanded range of appr8nticeships, thanks to our new partnership with UK Sailing Academy. Alongside d&livery of new equipment and facilities we havè invested heavily In digital transfomiation. For Sea Cadets, this means a fantastic platform supporting in-person delivery to our young people, with hybrid learning for our volunteers and online booking and consent for cadet courses. For seafarers, a further leap forward in our Learn@Sea and Leam@Shore apps means our digital offer malches many of the best in maritime education loo. And for the charity as a whole, new online finance and case management systems now deliver greater effectiveness. The Regeneration Plan's blended approach has given us even more ways to engage cadets, seafarers and volunteers, allowing u5 to be much more flexible in the way we can provide learning, training and support. From April 2023, our new Future Ready five-year slralegy will build on the work ofthe past two years, to meet the growing demand for what we provide and ensure we remain relevant in this rapidly evolving digital age. Page 2

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 Our values and culture We are driven by what we do and the impact we have. We are proud of our work, approaching it with positivity, enthusiasm and urgency as we seek to deliver more inspiring futures. Guided by the views of volunteers, cadets and employees, we have updated the way we define our six core values- to emphasise the importance of inclusion, inspire loyalty lo the organisation, and redouble our commitment lo doing our best. MSSC values Sea Cadet values Respect: Wo are inclusive. considerate and professional. Respect: To indusivo. a[￿r￿late others aTrJ corEMJerate of all. Loyalty: Wo put our baneficiaries first and pull together to achiev8 our shared goals. Loyalty: To be faithful io thoso who value arKI sut¥Jort rne. Self-dlsclpllno: We are focused and structured in our work ' to achieve the best possible outcomes. Self-dlsclpllna: To do my test arKI do what I must. Commltment: To do what I say I will. Commltment: We are committed io the charity's goals and to work creatively to find solutions. Honesty & Integrity.. To tell the truih a￿1 ￿ a gcc(I wson. Honesty & Integrity: We are open, honest and treat everyone falrly. Courage: To (k) what I krw)w is right. Courage: We do what we know is right and supporr others to do the same. Page 3

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 OUR STRATEGIC REGENERATION PLAN to 2023 Thanks lo the successfvl implemenlalion of our ￿0-year Regeneration Plan, Marine Society and Sea Cadets has proved immensely resilient to the challenges of Covid-19 The Regeneration Plan has not only guided our return to a full programme of acb'vities as swiftly and safely as possible. but il also helped Lts adapt to changing ways of working and thrive in adversity. And while the uncertainly of the pandemic could have diminished our offer, the consist8ncy and quality of what we were able to provide for our beneficiaries showed that we have never been so relevant or needed. CuiiLludiiiy iii m￿lUtI 2023, 111¥ R¥yeii¥idliuii Pldll Ii¢l¥ ¥fTibr41ued Six catalys15 for change that were developed during the pandemic to create a foundation for fvture growth.. outh£entred:-puttinwuryoung people&v18￿an{knRed5 ablhuentr&oEouDthinkillgand action so that we best equip thèm lor the world ahead. Empowered volunteorlng: providing effective and enabling support, encouragement and flexibility to equip our volunteers lo maximise theireffecl. Collaboratlve worklng: a one team approach al all levels enabllng us to deliver with speed and agility against our common go818. Developlng a new blended approach: driving digital transformation whilst retsining the value of in-person working, including a hands-on Sea Cadets experience for young people, 8eeomlng totally In¢luslvg.' building on our open culture lo drive even greater inclusivity for all and further corblribuling lo the communities in which weoperale. Maintalnlng our marltlme focus: ensuring we continu8 10 Serve the maritime sector, with Sea Cadets focussed on the customs and traditions of today's Royal Navy. For 2022123 we sel a rsumber of clear Regeneration objectives under seven strategic Areas of Focus, against which we note our progress opposite. The year also marked a number ol major milestones.. Cadets and volunteers participated in many Platinum Jubilee communrty events across the UK, marking the 70-year reign of our late monarch and patron Her Majesty Queen Elizabeth11. These celebrations were contrasted with playing our part in the luneral and remembrance of Her Majesty after her passing on 8 September 2022. Our Admiral of the Sea Cadet Corps formally opened Port Edgar Boat Station, participated in the Northern Area cadet forum, sailed with cadets on the Sea Cadets flagship TS Royalist and was the inspecting officer at Sea Cadets Northern Ireland 801h Anniversary parade. We hosted our biggest ever Cadet Conference, where 200 cadets helped finalise our new fivè- year strategy (see p91. and returned to a full round of fac8-to-face volunteer conferences. We opened 21 new Junior Sea Cadets section$ across the UK and secured funding from DCMS Youth Investment Fund to help reduce our growing wailing lists by opening 58 new senior sections by March 2025. We secured the balance of funding and began development of a new Midlands residential boat station in Birmingham, invested in creating new training facilities in Kent and Merseyside and distributed £1,027K in grants to units towards facility upgrades. We engaged 1,384 hard-to-reach young people in our On The Water summer programnie in Birmingham, Liverpool and East London, and a further 1 $,679 pupils in STEM school engagement workshops across the UK via our Marine Engineering programme. We entered an exciting new partnership for delivering maritime apprenticeships with UK Sailing Academy and produced three new Learn@Sea courses in communications. safety and engineering. Page 4

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 1. YOUTH Reiurr)IrNJ to offer lull range ol ctsi ￿livi11eS Oellverry J iw Roya Marines Cacleis solabus - Reiniioducing s(xne Intefnatiorl aciwilies (20231 rf lrtreasiro Ixjke ol Edinburgh ccwrs8s by 15% DelbverirYJ ￿ hwFS b0atirYJ18ver￿è) w cadet Giviro mrxe cadeis a VO￿ wilh If￿￿asL¥l dist1￿1 forums - Delivering a'wellting & iesiherre. course lor cadels naiKJna1ty ProvithrMJ practE41 eaieers sup￿1 Dev&loyiKJ èl Str4iegy Iv ¥elcl I1￿ m(Jern RN tti cddet JLlivili¥s S. COMMUNITY Ai ￿as1 50 Sea C&ts units pl¥1￿1patirQ ￿ G￿en,$ Flatii)um propcis ¢ ayiro our pari In ihe naii(x)a and kxal Qwi's HatiThJm Jubi￿ celebratL)ns rf IssuiryJ PlatnJm Jutx rwlals arKI cefliheates rf 6. MARINE SOCIETY L.5tJblishirig iwo Inaiiiinw ieciutiment ssessn)eiii ceiiiros - I￿$v￿¢r￿a IxJ¢reach cwrses 10 50 b&rners114-191 IXivL4optr)9 11)ree nvw Learri(OSea upskilliiig L()uises Esiablisl) a LafoLJ¥S biKkJe f(Y Clxlels seek¢i)g io txJress iiilo muiil1iT￿ seciL¥ - FiJritrr (knVebpi1￿ our Coniiy propci 2. VOLUNTEERS SuppK)rling return ol lull delwy ol the Sea Cact Experience Haf1￿1￿ blended leainiw dewing any vdunieer tralnirKJ ba¢kkyJs - Iiiir￿lUc￿1g m019 external accredi1aiio￿ for vol¢Mieei irainirYJ X Oriwn9 Ilex)￿ vc4unteering 7. ENABLERS Commiltlw IQ Lonstructty) ol J major rwi t(Jat slai1￿ ￿n Midl8iids tklivoring Improvemenis to r￿1(Mi81 trainfii￿ veNe eppxjilunititrs ¥ comp￿lIr￿j a tran¥Fxyi revw4 X nniro developmei)i ol sh¢x)iing hubs Lk14VWilU (M) secur¢d I1)veslrv￿1t In txiaiii equipnnt rf Conrinuing to roll (yJt dwersity Inclusicn F4on8 Cvek)png 8n environmenlal siiit89y GrowirvJ furKJr81￿ng deveknpirvj C￿n￿lnical1OnS 3. GROWTH SupF4>rtiro unll wegenwatKJn pL8rns Oeliv8rirMJ 1,200 wtieaeh oppwtunllles Vk? oul 'On ihe Watei. prfyJramm 0$￿171￿ a luillv 20 new Jun￿ SeCiK)rs 8nd rgluii)INJ lo April 2020 c￿1 mrnlrs D￿e[oPr￿a e siraiegy for luture ￿0W{￿ - 4. OIGITAL Ddiverlng (￿11￿ course ptynni and eXp￿￿e systems Rollng out ¢lJf VOIL￿teer p￿181 Deliverir)g J cas& inanL%Jeniii sysigm IL¥ vojunte suppL¥I and saleguordirYJ Deliveriro thgita volunteer onlThrth'w UFgvadirKJ Marine sc¢￿lY th9ltal sysiems X KEY Achw￿l In prog¥ess Noi achwed/defwr8d THEORIES OF CHANGE During the year we have also developed theories of change {shown overleafj to give a clear picture of the journey a young person or a seafarer goes on with us, and how our interventions build to deliver immediate and enduring positive impact. This helps lo ensure that the charity offers a consistent and conscious outcome to all beneficiaries and that we always meet our charitable objectives, rnaking a positive, life-enhancing differen￿. Page 5

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 March 2023 OUR THEORY OF CHANGE FOR SEA CADETS The chart below helps to show how we deliver impact for young people through the Sea Cadets Experience lopposile). It means we can explain more clearly why we offer what we do through the Sea Cadets Experience and how we achieve positive outcomes for young people. 1¥4y¥J Ovtyj Tol41rt14 Srooly TIIwx¥ otCbL¥W mt th•Tfwyoi Clw SEA CADETS n•liMll•: olaehthial Wtix¥rn¥ Page 6

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 THE SEA CADETS EXPERIENCE The Se8 C8Lts EXF¢f￿r￿ S￿ theoctmty cffj offer to youNJ wAè. It off&8 8 pathwty fty th￿ to fdow as li tharts thw'r FYoJre55. ktsntlfylng It￿ number of hcjjrs of (xyjrses to atteTrJ wlst irair￿￿ to wo3res8 thr(xoh tlwr sea cadet career. throughout cK¥ Sea Cadots Values the c(xe of vknat we do and h￿pkng t1￿ to Ihj thar coJse kn1Sf& tlywh us. Sea C•d•t8 12-18yr8 Royal M•rln•s C•d•ts 13-18yr8 Junior S•a Cadets 9-12yrs' 4-6y••r• 0-1 ymr ¥•w• IfiEC-fiMcI 'ILCHJ J-J ¥•ir• IN1.£-c￿e) . ICF¢4C> Adv 8••C•d•i Mlq Int trdr•' Adv Adv modul•• .y. 8p•¢l•llb•iio¢b )Adv Prpllcl•nty TA￿￿￿41￿4 %*• J IAdv IAdv 1J m4dUY•• IAdv ?8 modul 8Ohri 8Ohv• 6Ohr& hr•' K•y weAw•wd: vl (N4itr4tKv￿￿vX1kn. Sklll •t <AMC) ). Page 7

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 OUR THEORY OF CHANGE FOR MARINE SOCIETY The followlng diagram Show8 how we engage and support current and future stafarers BfKI maritime professionals, dalivering $hort-lerm and enduring benefits for them and the maritime se¢tor. |IwJlWITl￿ll￿￿Try 1IFYJ5b and lol w(Kld unrj ID IdthD li01n￿ FmS¥C8d•T8 Thffjofchwwovqr 108FWCVII$ Pr¢wl8lNiol uty Iifyo CBokntu ¢icr¢ng• ovqtlqBf .-.11 ￿￿5￿[￿.10&￿&..I$fy1.. Th*￿B￿ rwWkhidogB Mtdrth¢thtrd thai Wdowth•Twryorcrw¥do MARINE SOCIETY Llnk•JcDrnpan•nt:TWth8tlhktr•tOmScoto Page 8

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 OUR FUTURE READY STRATEGY to 2028 Our Future Ready strategy, developed with our cadets, volunteers and employees over the last 18 months. charts our course for the next five years to 2028. The strategy is about meeting the growing demand for what our charity offers young people, seafarers and maritirne professionals and equipping them for a world of increasingly rapid change We seek to achieve this by creating the conditions where-. We are offering young people a better Sea Cadets Exp8rience, increasingly r8fleGling today's Royal Navy and driving the Cadet Voice. More seafarers and maritime professionals are prepared for successful careers in lin& with the Gavernmenvs Maritime 2050 strategy. We have sufficient volunteers with the training and flexibility to launch young people for life, fully equipped to thrive in a chan9ing world. We support and develop our employees to thrive in their roles. Sea Cadets is able to grow to meet the increased demand for our unique off8r. We become even more inclusive and diverse as a national organisation. We will do this by focussing on three key themes.. Our Offer- Enabling a more consistent, focussed delivery and driving cadet voi¢8. Our People- Enabling and equipping our volunteers and employees to support our beneficiaries. Inclu81on & Growth - Supporting more beneficiaries and being more diverse and inclusive. All supported by our underpinning Enabl8r8. Together these are seen as the levers we can pull lo deliver real Impact. OUF Enabler5 We are clear th81 safely and safeguardlng are paramount to everything we do 8nd therefore foremost in all of thè obj8clives in t1￿ strategy. Page 9

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 OUR FUTURE READY STRATEGIC PRIORITIES FOR 2023124 AND BEYOND Using the priorities set out below, our Future Ready strategy will help our charity seize the opportunities we have worked so hard to create over the past years. Our Offerfor Sea Cadets.. Enhance the S8a Cadets Experience Further reflect today's Royal Navy and thè maritime sector Develop Cadet Voice Our Offer for seafarers and maritime professionals Expand apprenticeships Grow and broaden OUT marilimo currieulum Develop the promotion and support for maritime careers Oevelop financial support Our Poople Equip our volunleers for their roles Increase flexible approaches to volunteering Equip our instructional volunteers for their roles Support and develop our employees Incluslon Update, develop and implement clear EDI policies Provide training, resources and signposting Identify and implement appropriate support mechanisms Ensure that we reflect the communities we serve Monitor progress and develop our approach Growth Create the conditions for growih Enable existing provision lo grow Develop new provision Grow alternative and targeted outreach Enablerg Develop our environmental approach Generate the necessary funding Continue lo improve communications Develop faGililie5 and equipment lo support cadet training Continue lo drive digital transformation Develop our assurance mechanisms Guided by this strategy, we are more motivated than ever to maintain our status as leaders and pioneers in everything we do, while striving to lèarn from others and embrace better ways of working. This strategy ensures that, whatever the next five years bring, our young people and seafarers will be Future Ready. We have sel detailed yearly plans for FY2023124, marshalling resources to work with our amazing volunteers and ernployees to deliver Suc￿ss. We have set our top len outcomes for the year {opposile). Page 10

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 TOP TEN STRATEGIC OUTCOMES FOR 2023124 Our oifer for Sea Cadets Our cadets have more training and activities available that are engaging, with new sessions added to the Cadet and Royal Marines Cadet training programmes as well as new sessions to support positive mental health and emotional wellbeing. 2. Our cadets have more RN experiences on offer with 20 /D ol cadets engaged with Ihe RN and an amphibious experience delivered for up lo 200 Royal Marines Cadets. 3. Cadet Voice is further developed with 25 /0 of units holding regular cadet forums and at least projects delivered using cadet co-production approaches. Our Offer for se8farer$ and maritime professionals 4. Our maritime appienliceships offer is fvrther expanded with 20 new apprentices enrolled and Six apprenticeship standards offered. Our People 5. Our volunteer training is further developed, with a new basi¢ lea¢Jership course in place and core modules revised," a national framework for volunteer mentoring identified," barriers lo flexible volunteering identified and whele possible removed,. working with young people approach embedded, and a Di51ricl management Course developed. 6. We have promoted development opportunities for our employees including management and leadership courses. Incluslon & Growth 7. We have continued to grow and begun to address our waillng lists with al least 12 new seclionslunits opened, including failh-based groups, and cadet numbers up by al least 500. 8. We are becoming more inclusive with at least six existing policies revised,, a disability position slalement and guidance published,. the Sea Cad81s Promise and Prayer updated,. an initial volunleerlemployee onllne training module in place,. an accessibililylinclusivily audit of MSSC facilities completed.. and cadeuvolunleer participation in IMO inclusive external events developed. Enablors 9. We have begun to improve our environmental approach with best practice sharecl, including case studies and funding opportunities,. tools made available lo measure unil and MSSC facility carbon footprints., and OUT Sèa Hives project deployed in at least two looalions. 10. We have better system5 and facilities to support delivery, with digital volunteer onboarding delivered and unil assurance and support proce55 reviewed and re-launched. We have also begun delivery of unil rifleldrill hub5, regional shooting hubs and adventure training hubs, and are beginning lo provide solutions lo beyond unil training facility requirements, while Midlands Boat Station and Middle Hill adventure centre projects are completed or close to being completed. Page 11

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 MSSC'S LAMBETH ROAD, LONDON PREMISES On 27 April 2023, the charity officially opened its new National Support Centre at 200b Lambelh Road London SE1. HRH The Princess Royal performed the opening ceremony in her offi'cial capacity as Admiral of the Sea Cadet Corps, having been received by the Deputy Lieutenant of Greater London, Christopher Wellbelove, and the Mayor of Lambelh, Councillor S2rbaz Barzrsji. The former MSSC building and land at 202 Lambelh Road ￿MaInS the property of the charity and is currently bèing marketed for disposal. CHARITY OBJECTS The objects of the Marine Society & Sea Cad@Is IMSSCI, a charity fegislered in Eng18nd and Wales 313013 and in S¢olland SC037808, are set out in it5 governing instruments which are based on the Act of Incorporation of 1772, the Charities (Marine Society) Order 1976 No 147 and subsequent Charity Commission schemes, the latest being that dated 22 November 2004. The Objects of the charity are.. to promote the development of young people in achievlng their physical, intellectual and social potential as individuals and as responsible citizen5 by the provision of education and leisure lime activities using a nauli¢al thomo lo advance the education of seafarers in such ways as the Councll shall determine bul including lat the discretion of the Council) the following.. the provision in ships and on shore of a comprehensive library service in any media for the use of seafarers the assistance of persons preparing for or enleiing upon a maritime care8r by the provision of trainin9, the payment of fees, maintenance and other expense5 and the making of loans the award lo seafarers of scholarship5, bursaries and n)ainlenance allowances tenable at nautical or other schools or training eslablishmenls the making of grants or loans lo nautical or other schoo15 or training eslablishrnenls which are charities or to other organisalions established for charitable purposes only which provide facilities for and 8ncourag8 young persons to become seafarers the advancement of the education of the public in maritime matters the promotion of sclenlilic or other research of particular benefit lo seafarers and the publicalion of the useful results of such research the provision in the interests of the social welfare of seafar8rs of facilities for recreation and other leisure-lime occupation, being facilities which will improve their conditions of life and of which they have need by reason of their social and economi¢ circumstances the relief of financial hardship among seafarers and their dependants "Seafarars used above is a temi defined as.. persons who have served, are serving. or intend to serve in the Royal Navy, the British Merchant Navy or fishing fleets or any other maritime career persons who a￿ serving in the navies. merchant navies or fi'shing fleets of such other countries as the Council from lime lo time determines Member5 oflhe Sea Cadet Corps., and any other younq persons considering or interested in 8 maritime career "Sea Cadet Corps" ISCCI means properly conslituled maritime cadet units that conform lo the policles of Sea Cadet Regulations established by the charity and that are lormally affiliated to it. Page 12

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 HISTORY The Marine Society was founded in 1756 by Jonas Hanway, a London-based philanthropist, with the aim of encouraging young men and boys of good character to join the Royal Navy at the start of the Seven Years, War. Incorporated in 1772, the Society commissioned in 1786 the first sea training ship in the world, the 350- ton Sloop Beally, and went on to provide sea training all the way up to the Second World War. It was eslimaled that over 110,000 men and boys were Irairsed and equipped by the Society over this period. The Sea C8dels movement dales back lo 1856 when sailors returning from the Crimean War started up 'Naval Lads. Brigades, in ports around the country In 1910 the Navy League sponsored a small number of independent units, which received Admiralty recognition in 1919. In 1937 Loid Nuffield gave £50.000 to fund the re-launch and expansion of the Corps and five years later the Admiralty started lo pay for uniforms, equipment, travel and training. In 1976 the ￿avY League was renamed the Sea Cadet AssoGlation. In 1963 the Girls, Naval Training Corps IGNTCI, which had been formed in 1942 with objectives similar to those of the Sea Cadet Corps, became a partner organisalion of the Sea Cadets, often sharing facilitie5. In 1980, the GNTC merged with the Sea Cadets, firstly as the Girls Nautical Training Conlingenl, until becoming fully absorbed in 1992, Girls and women currently make up over a third of all Cadets and volunteers. MSSC was formed in 2004 on the merger of The Marine Society and the Sea Cadet Association ISCAI with the merged organisalion rètaining the constitution of The Marine Society. The SCA Iregislered charity number 306141 & company number 4049511 is now a subsidiary ol MSSC. PRINCIPAL ACTIVITIES The activities broadly relate to those of promoting Sea Cadets activity and helping seafarers realise their ambitions, The charity support5 the maritime industry through the provision of Marlne Soclely College aclivilies. by promoting career opportunities into maritime, upskiS1ing seaf8rers using new technologies, whilst supportin9 others lo trans11ion ashore into marilime-related roles. As an approved Governmenl-funded training provider and Ofsled-raling 'Good', Marin8 Society will build on ils global reputation for supporting seafarers offering advice and guidance, scholarships, bursaries, apprenticeships, a growing range of post-16 to gmduate courses a5 well as delivery of crew libraries and specialist book sales. The charity acts as the franchisor for Sea Cadets unils- local group5 are consliluled as separately registered charities. The charity sets Sea Cadets regulations, issues guidance and performs inspections lo ensure that the highest of standards are maintained, It provides support in many other ways including provision of uniforms, equipment, onshore and offshore training and related travel, business and unit support and Disclosure and Barring Service IDBSI Checks. Thè charity doe5 not have overall control ovef the day-to- day operation of the individual units. Sea Cadets units operate across the United Kingdom, with a total as al 01 April 2021 of 13.216 cadets 110,965 in England, 1,046 in Scotland, 682 in Wales, 344 in Northern Ireland and 179 oversea51. There are 304 established units in England, 37 in ScDlland, 22 in Wales and 11 in Northern I reland, with a further I￿0 in Bermuda and one each in Jersey, Guernsey and TrAalla. There are also a further six new units lone in Northern Ireland, five in England) and fifteen partnership units lone in Scotland and fourteen in England). The charity maintains Six area offices, five based in England and one in Scotland, Ihr8e national training cenlres, in England and one in Scotland, eight boating slalions, seven in England and one in Scotland. and an offshore fleet of five vessels, based in England. Page 13

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 VOLUNTEERS The charity relies extensively on volunteers to support the delivery of it5 training and other activities to Sea Cadets, and lo setve as unit management team members Ilrustees) of Sea Cadets units. As al 01 April 2023 there were 4,262 adult instructional volunteers, 1,557 unit management team members and 2,698 other VDlunleers. In total 8,517 volunteers 7,069 in England, 715 in Scotland, 434 in Wales and 196 in Northern Ireland). We are extremely grateful for the generosity of lime. huge commitment and can-do attitude of our volunteers in making the Sea Cadets the success that the organisation 16. KEY RISKS AND UNCERTAINTIES The Council is responsible for management of the risks and un¢ertaintles faced by the charity, 8SSlSted by senior staff. The Council undertook an annual review of the organisalion's risk management process through the Safely. Safeguarding, InclLJsion and Risk Committee in July 2022, and together with the Policy Development and Nominations Committee and the Financial Inveslm8nls Audil and Remuneration Committee continued to monitor the charity's key risks throughout the year. The charity's risk register operates at three principal levels., the Strategic Risk Register, the High Operational Risk Register and Departmental Risk Registers. Each risk identified is described, togethér with its indicators and mitigating factors in place. and its target and current mitigated scores based upon an impact and likelihood matrix. A commentary is also maintained by risks of a¢tions In progress to further reduce the risk score, which may also be increased should risk circumstances change. All risks and their completeness is reviewed and revised by management and reviewed by the relevant committee, overseen by the Safely, Safeguarding, Inclusion and Risk Committee which meets four times a year. The Council considers the key risks facing the charity to fall within the following areas.. Safeguarding children and vulnerable adults Health & Safety Sufficiency of MOD Grant in Aid funding Lack of diversification of funding and support Sufficiency of financial reserves Public perception and reputation Stakeholder management, and in particular, key stakeholder support The key mitigating controls used are.. Formal and periodiG review by the trustees Comprehensive strategic planning, budgeting and management accounting Formal organisational and governance structurè and lines of reporting Formal written policies Hierarchical authorisalion and approval levels Intarnal audit review of largeted areas External audit The Council is salisfied that key risks identified are adequately managed and these are reviewed by the full Council. It is recognised that systems can only provide reasonable but not absolute assurance that major risks are adequately managed. P8ge 14

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 FINANCIAL REVIEW Income Total income amounted lo £16,503K (2022.. £19,352K), a decrease of 15￿￿ over the previous year. Donations, legacies and other income are £1,779K down on last year. This reduction is prirnarily due to income received in 2022 and not repeated in 2023. This includes Naval Club {£800kl, Garfield Weston (£250k), Sale ofArtefacts (£373k) and Sale ofAnnex {£256k). MOD grant in aid, £2,oogK additional funding was received in 2022 mainly due to the provision of the RN Armaments security funds1£2,400kl. We continue to remain sincerely grateful for the continued support provided by the MOD in helping finance the Sea Cadets. These reductions were offset by additional training and offshore income as residential courses return6d to normal afier the pandemic. Expendllurè Total expenditure was £18,780K12022'. £15, 8081Q, an increase of 170/0 on the prior year. This reflects expenditure returning to pre-pandemic levels and spending some of the restricted funds received in 2022. The cost of safeguarding and supporting Sea Cadets activity and infrastructure increased by £998K1120/0l - the majonly in purchasing the equipment linked ta restricted funcls - plus additional IT & Stores costs. Sea Cadets training increased by £1,546K143D/ol the majority in purchasing the equipment linked to restricted funds, plus increased costs for training and events as activity returns lo pre-pandemic levels. Offshore costs increased by £613k1290/0l as travel and victualling costs reflect the return to residential voyages. These increases were offset by savings in Fundraising costs {£156k) (330A) which was du6 to staff shortages. Net Income and other movements Overall, net income before investmenl gains was down by £5,820K to1£2,277K) mainly due lo the significant reduction in reslricled grant income. The {£2,277KI is broken down to restricled funds (£2,159KI and Unrestricted funds1£118K). It has been the policy of the charity since 2012113 to sel aside long-term gains from its expendable endowment for current expenditure. The allocation amounled to £nilK12022'. £nilK) based on a 4.00kn agreed return sel by the Trustees following advice from the investment managers. Investment portfolio loss In the year were (£889K). Page 15

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 FINANCIAL REVIEW Icontl Balance sheet In spite of spending £560k Dn the NW Adventure Centre, Midlands Boat Station, RS21 and the Petrol Pier pontoon the net book value of tangible and intangible assets fell back by £587k due to the depreGiation charge. The value of investments portfolio fell back by £862k in what was a poor year for retums from the stock market. Cash al bank has decreased by1£852KI. Total debtors have decreased by {£259KI. mainly due to Trade debtors which have reduced by 1£242kl Slo¢k has decreased by {£97kl. Total creditors have increased by £51 OK due to an increase in Grants Payable and Accruals, offset by a reduction in VAT creditor. SAFEGUARDING POLICY MSSC Safeguarding Policy Statement At Marin8 SoGiely and Se8 Cadets (MSSC) we recognise our responsibilities lo ensure that in line Mth our duty of care we safeguard and protect the children & young people and vulnerable &dults with whom we work, doing all we can to promote their safety, health, well- being and happiness. Wé continually strive lo b8 8 respected and trusted organisation where everyone fgels safe to participate in all our aGlivitigs and our cadgts and 8dults understand their righl to be-pmlected from all forms ol ham7. MSSC accords the utmost priority to the safety of vulnerable and groups and those groups & individuals with protected characteristics. All have the right to be free to work, learn and develop their potential without fear of discrimination or exclusion. All members of the MSSC will be valued and their rights to opportunity, protection and safety fully respected. This is underpinned by the harity's values and other supporting policies and procedures including our Equity, Diversity and Inclusion policies. Page 16

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 FUNDRAISING STANDARDS Open and accountable The MSSC works hard to ensure that everyone supporting the charity understands how their money will be used to help launch young people for life today, whatever they want to do after school, and help people who work on the sea to keep learning all their lives. This is reflected in the low levels af negative feedback we receive, and thè absence to date in recent years of formal complaints to the charity. Complaints and negative feedback Should we receive a complaint r6latèd lo fundraising, we would respond on a one-to-one basis as quickly as possible, maintaining full records. There has been nothing to report in recent years. Contactlng our supporters and superrfising our fundraisers The charity prides itself on a high standard of ethical fundraising and we continually review how we contact the public to ask for support. This ensures that we follow regulations, meet our own high standards and exceed the public's expeclalions, including ensuring the charity's compliance with General Data Protection Regulation (GDPRI IEUI 20161679. MSSC staff and volunteers carry out the vast majorlty of the charlty's fundraislng actlvltl08 We did not work with any professional fundraisers and fundraising organi5ations in 202212023. The Trustees are aware of the need to Gomply with regulations from the Charities (Protection and Social Investment) Act 2011. The MSSC ensures that our approa¢h to commercial participators, professional fundraisers and our contracts with them are in complianGe with the regulations. Protecting our reputatlon, money and other assets As a charity, gaining supporters, trust is incredibly important. The MSSC must demonstrate Ihat it is a responsible and worthy recipient of supporters, generous donations. We therefore work hard to ensure that we manage our money and other assets responsibly and do all we can to maintain our good reputation by being transparent and trustworthy. Th8 MSSC takes its responsibility for managing supporters, donations very seriously and applies rigorous financial controls lo ensure funds are securely held and properly accounted for at all limes. The MSSC strives to make the supporters, experience simple- making it easy to donate in a way that suits individuals, whether that is online, by post, over the phone or through other means. The MSSC works hard to ensure that its fundraising communications are truthful and fairly describe its activities. Protecting the vulnerable The MSSC takes its responsibility towards supporters who may be considered to be in vulnerable circumstances very seriously. Our fundraisers ar6 carefully briefed to respond sensitively and appropriately to any individual whom they might consider lo be in a vulnerable circumstan￿. The team is further supported by an in-house safeguarding department which are able to intervene when flagged. Page 17

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 FUNDRAISING STANDARDS (conti Compliance with fundraising laws and regulation Fundraising regulation goes through continuous change. Through membershlp of industry l)odies, subscription to char(ty sector publication5 and staff continuing professional developmenl we ensure Ihat our fundraising teams keep up lo date with amendments lo regulations and professional practice. and their changing responsibilities. The Trustees are satisfied that MSSC adhered to the appropriate fundraising standards for the year ended 31 March 2023. The charity is a paid-up member of the Fundraising Regulator. Compliance wlth recognlsed standards Every member of our fundraising team is responsible for making sure that they are compliant with the standards laid out in the Fundraising Regulator's Code of Fundraising Practice. This is carefully monitor8d by senior managem8nt. We are satisfied that we m8et all current standards. No complaints were received about fundraising in the year. INVESTMENT POLICY Investe¢ manage the investment portfolio {excluding properties managed directly by the charity {5ee Note 121). KW Investment Management manage the treasury portfolio. The overall objective of the inveslment policy is to create sufficient income and capital growth lo enabl8 the charity to carry out its purposas consistently year by yèar with due and proper consideration for future needs and the maintenancè of, and if possible, enhancement of the value of the invested funds while they are retained. The overall objective of the treasury policy is to achieve belter returns on cash than through bank deposits, primarily using short dated corporate bonds and certificates of deposit issued by the major banks. MSSC'S objective is to achieve, over the medium term. a real lolal return of al least 4.OOA (net of fees and inflation). Both Capital and income may be used at any time for the furtherance of the Chartty's aims. The investment portfolio mix is set to fall within the following broad planning ranges.. Planning range 30-550 30-55 % 31 March 2023 31.80/0 43.30 9.40 31 March 2022 33.80 UK Equities Non-UK Equities Fixed Interesl Property Hedge funds Other Cash 10.00 4.8% 00 00 5.80/0 4.5V 00 0_300 4.10 Page18

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 INVESTMENT POLICY {contl This does not mean that they can't still be tactically ovemeight in any asset class from time to time. The bonds held will be of 'BBB' credit rating or better. No sing18 invèstment should exceed 10 /0 of the total value of the funds under management and the total sum of all equity holdings in excess of 5 % must not b8 equal to or exceed 40 % of the fund's value at any time. Tho portfolio should have a minimum of 35 separate stocks held al any one lime, either within packaged products or held directly. The objectives are lo be achieved by investing prudently in a broad rangè of fixed interest securities and equities which are quoted on a recognised investment excFiange and unit trusts and OEICS (open ended investment companies) which are appropriately authorised and compliant with current legislation. The performance of each asset class is measured against relevant market indices, The overall performance is compared with the long-term return expected (40/0 plus inflation and fees) and a portfolio weighted Charity Universe benchmark. From 1 April 2018, the Trustees have adopted CPI rather than RPI as a more appropriate measure of the inflation facing th8 charity. Investments in Alternative Investment Strategy funds, Derivatives and Hedge Funds arè allowed on a limited exposure basis lup to 5Qh of funds) on a short-term basis {maximum of 5 years). Treasury holdings should not ex¢eed £1 M by counterparty, nor two years, maturity for bank debt. Ethlcal con8ideratlons The Trust888 would like to invest in a responsible and sustainable way and therefore 8XP8cI the investment manager to take into account ESG factors when making investment decisions, as well as a carbon aware approach. Investec does this under their Responsible Investment philosophy by screening all companies from an ESG perspective. They are scored on a range of metrics including environmental credentials, business ethics and human rights issues. Performance The fund delivered a total retum {net-of-f8esl of {4.9%1 {2022'. 6.7%) againsl our real relurn benchmark of 14.1Vo (CPI plus 4 % l and ARC Sterling Steady Growth Index 1 of {4% ) (2022. 6.30/0). Total return over the Ihree-year period to 31 March 2023 was 8.30h Inel-of fees) per annum against benchmark of 9.90/0 (CPI plus 40/0 per annum over the period) and ARC Sterling Steady Growth Index 8.2D/o {n8t-of-fees) per annum. The Trustees continue to monitor Investment performance and are grateful for the assistance of th8 investment managers, Invest8C. Review of Investment managers A tender exercise for the provislon of investment management services to the charity was conducted in 2023, with the assistance of Independent Investment Reviews Ltd. Following a full and fair competition. Cazenove have been appointed and are in the process of taking over from Investec. Ruffer have been appointed lo manage the net funds anticipated to be raised from the current marketing for sale of the former HQ at 202 Lamboth Road. 1 The ARC Sleding Steady Growth Ind8x is a ¢omposile of charity portfolios exhibitlng 60-80% of the vol8lility of the UK equity market. Page 19

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 RESERVES POL Total funds at the year-end as detailed in note 18 were £36,321K, (2022.. £39,488K), which includes £15,671 K12022'. £18,143K} restricted funds and £17,384K {2022. £18,273K) endowment funds. After accounting for intangible and tangible fixed assets of £570K (2022.. £570KI and setting up of designated funds for investments in expedition equipment and environmental grants - giving a total of £1,774K (2022'.£1,460K), this leaves unrestricted funds. Comprising free reserves of £922K12022.' £1,041 K). The ¢harSty does not retain MOD grant monies as part of its reserve5. The reseN8s policy of the harily is a risk-based approach, meaning that the reserves reflect the risk of loss of specific income and the risk of the most significanl costs increasing On the basis of this approach our target is £2.8 million. A breakeven budget has again been sel in the current year, It is unlikely the charity will be able to meet ils reserves targets and instead will have to rely on expendable endowment to act as reserves buffer. The policy has Clear dangers for the charity in the long term so any drawdown that may be made will be kept to an absolute minimum. It is at the complete discretion of Trustees as lo the level of support the Gharity will give to the Sea Cadets movement in the event of shortfalls in public funding. GRANT MAKING POLICY Grants awarded in 2023 amounted to £1,027K (2022.. £1,4641Q. Individual Sea Cadets units aré 88parate registered charities and thus financial support is paid via grants. The policy of the charity is to grant monies for one-off items to support the Sea Cadet Corps and individuals (members of the Sea Cadet Corps or seafarers) to help them erther facilitate or receive approved training or qualifications. In addition, grants are provided lo volunteers to allow upkeep or purchase of uniforms on promotion or for wear and lear during the year. Payments are made in accordance with published scales. STAFF REMUNERATION POLICY As a charity, it is important we achieve balance in ensuring value for money, including how we pay our slaff, with the need lo attract, motivate and retain the right people lo ensure we are able to deliver our ambitious plans and so maximise our impact on our beneficiaries. Therefore, our principles are lo pay fair salaries that are consistent with our commitment to equality and diversity,. that we remain compelitive within the industry and geographic location of the role., are appropriate for the level of responsibility,. and are in keeping with our charitable status. Headcount is reviewed annually as part of our budgeting proces5. Governance of Pay The Council approves Ihe Pay and Benefits Policy, and the Finance, Investments, Remuneration and Audit Committee is appointed as a committee of the Council to approve pay related matters. The Council delegates to this committee the annual pay review and determining the CEO and senior management team salaries. This committee meets quarterly. Page 20

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 MSSC STAFF REMUNERATION POLICY (conti Annual pay review Salaries are nomially reviewed annually in April l May with any pay increases being paid from 1 June. We benchmark salaries to ensuré that we are paying appropriately and that we broadly fall within the mid-point for similar organisalions. Vvhere we find salaries that are not aligned, we adjust accordingly. There is no obligation to increase salaries, however if it is affordable and we have performed well, then a uniform inflationary increase may be applied. This is awarded to all staff, including senior staff, with the exception of those who are within their probation pèriod or have resigned. or those who have already received an increase that year. Salariès had an inflationary pay increase of 40A in June 2022 and an additional £1,250 for all staff in January 2023 to recognise the pressur8s of the cost of living increases. PUBLIC BENEFIT The Council rnembers continue to give due regard to the public benefit provided by the charity in relation lo ils charitable purposes as set out in the activities and achievements outlined in this report and have given due ¢onsideralion to guidance issued by the Charity Commission on this matter. The aim of Sea Cadets activilies is lo give young people the b851 possible head start in life through nautical adventure and fun, based on the customs and traditions of the Royal Navy. 'Adventuro that launches young people for life" In order to achieve this, Sèa Cadets units lake young people from all backgrounds, including where possible those with disabilities and develop their skills and abililies by.. Inspiring young people through regular and structured aclivrties with a naLrtical theme Encouraglng young people to take part in activities connected with the wider Sea Cad&ts movement. including inshore boating and offshore voyages, as well as events and competitions at District, Area and National levels Availability of formal externally recognl$ed èducational achievements whilst taking courses to earn badges and promotions Charges are kept low in order lo ensure all those who wish to take part in Sea Cadets activities may do so. Where further financial support is required for those on low incomes, a wide range of bursaries are available. The aim of the Marine Society is to give aspiring and serving seafarers the best possible lifelong learning opportunities tailored to their individual needs. 'Realising Seafarer Potentlar,. Page 21

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 PUBLIC BENEFIT Itontl We achieve this through a wide range of services that are geared towards Iheir p8rsonal development, education and learning support needs, hélping them realise their potential. This includes.. Promoting career opportunities into the Maritime sector As an approved Government-funded training provider with Ofsted-ratlng 'Good', offering advice and guidance. scholarships, bursaries, apprenticeships and a growing range of post- 16 to graduate courses D81ivering upskilling courses to aspiring and serving seafarers around the wold through use of digital learning Supporting others to transition ashore into marilime-related roles. Providing a ship's library service for seafarers at sea and specialist book sales. The Council members are thus satisfied that the ¢harity provides substantial public benefit. ORGANISATIONAL STRUCTURE AND GOVERNANCE The charity is governed by a board of unpaid non-executive Council members who act as Trustees. Details of the Council Members who served during the year, and as al the date of this report, together with details of the executive management and professional advisors, are shown on pages 56-57. The Council meets al least quart8rly and is supported by m8mbers of the senior management team. Responsibility for reviewing key areas of activity is delegated to committees which report back to the Council meetings. The Committees. with specific terms of reference, may also include specialist co-opted members as well as Council members lo ensure that expert opinion is available. The day~to-day management of the charity and the exercising of ex8CUtive responsibility are delegated to the CEO and senior management tèam. Meetings of the CounGil are also attended by one of our current First Sea Lord Cadets. The current committees and their primary purposes are.. Finance, Investment, Remuneration & Audit Committee Oversees the financial affairs of MSSC, including managem8nt accounts, budgeting and thè preparation of statutory account$ Formulates Investment policy and oversees the management of Investment assèts Oversees and ensures the proper conduct ofthe internal audit process in a¢cordan¢e wrth Council requiremen15 Oversees the rèmuneralion, terms and conditions and performance review of MSSC'S CEO and HQ senior management Oversees the appointment and remuneration of the external auditors and rec8iving reports from them Page 22

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 ORGANISA TIONAL STRUCTURE AND GOVERNANCE (cont) Policy, Development and Nominations Committee D8V81ops and recommends strategy and policy for the optimum use of MSSC resources in order to fulfil its objecls in the medium to long term12 - 10 yèars) Advises Council on major strategic Issues, especially those which do not fall within the remit of any other major committee, and for monitoring thé implementation of MSSC'S strategic plan, keeping it under review, and advising Council on ils rèvision Considers and approves guidelines for fundraising and public profile strategies Nurtures and dèvelops relationships with external stakeholders (including MOD, Skills Funding Agency {SFAI and public funding bodies) in order to maximise support Sets and monitors perfomiance against established targets {KPls} Undertakes a nominations function, in liaison wilh MSSC Chairman, for appoinlment to MSSC Council and the Committees Safety, Safeguarding, Inclusion & Risk Committee Reviews the quality of services and activities undertaken by MSSC (and SCCI to ensure that they are safe (with particular consideration to the need to protect ils young people), high quality, inclusive and appropriately risk assessed Ensures the maintenance of an effective system of inlegraled govarnance and risk management that supports the achievement of the organisation's obje¢tives National Sea Cadets Forum Composed of Sea Cadèts, together with representatives of the MSSC management team and Council. The forum supports the aims and objectives of the SCC, providing ideas and feedback to the MSSC from cadet forums at Area level. In the year, work continued to create cadet forurns at District level to link in to the Area Cadet forum and in turn the National Sea Cadets forum. National Sea Cadets Advisory Council (NSCAC) Prtmarily composed of representatives and volunteers of the SCC and MSSC management team, The council supports the aims and objectives of SCC and provides advice to its principal national sponsors. From 9 July 2014, the chair of NSCAC was invited to be Trustee of MSSC for the period of offiGe. Appointmen( Induction and training of Council membars Council members (Trustees) are co-opted by the board and elected by the charity's mernbers at the AGM following their appointment according to the provisions of the Society's Scheme. A Council member, who has previously been re-elected at an AGM, is eligible for re-election only with the prior approval of the Council. The Society's Scheme formally provides that one-third {rounded downl of the elected Council members shall retire at each AGM. The board keeps the skill requirements for the Trustee body under review and, with these in mind, seeks to identify new members in a range of ways, including reGommendation from all interested parties. Page 23

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 ORGANISATIONAL STRUCTURE AND GOVERNANCE ICONTI The induction process for a new Council member comprises initial meetings with the Chairman and other members of the board, followed by meetings with the CEO and senior m8nagement team, through which the individual will be briafed on the remit of the charity and the powers and responsibilities of its Trustees. The charity aims to provide all new Council members with the information necessary to ensure that they are fully equipped to contribute to the organisation within their powers. Council members are informed of current and evolving issues within the sector by the senior management team. Member8hlp and Branches The MSSC is a membership organisation and currently enjoys the support of some 600 members who pay an annual subscription to the Charity MSSC has five (2022.. five} branches within the United Kingdom made up of members of the charity who reside within its locality. The annual subscription5 of those living within the calchment area of a branch are returned to the branch committee to be applied for the benefit of local Sea Cadet5 units and MSSC initiatives. These branGhes are an active and welGome force in spreading the charity's message at a local level. THE CHARITY GOVERNANCE CODE The Trustees have considered the new third edition of th8 Charity Governance Code for larger charities, published in July 2017 by the charity sector's The Code Steering Group (the Association of Chief Executives of Voluntary Organisations, the Association of Chairs, Srnall Charities Coalition, the Institute of Chartered Secretaries and Administrators.. The Governance Institute, the National Council for Voluntary Organisation5 and the Wales Council for Voluntary Action). The code is supported and endorsed by the Chanly Commission in England and Wales. The Gode lays out principles for seven key areas of governance together with recommended practice for each principle., organisalional purpose, leadership, integrity, decision making, risk and control, board effectiveness, diversity, openness and aGcounlabilily. The Trustees consider thal the charity continues to Comply with the principles of the code. INTERNAL AUDITOR'S REPORT TO THE COUNCIL The Internal Auditor reported lo the Council in July 2023 as follows.. Based on the work perfomied dunng the year, it is the opinion of Internal Audit that MSSC has an adequate and effective framework of governance, risk management and control in place to support the organisation's objectives as laid oul in its Vision and Strategy. Following each audit engagement, actions to address any identified control weaknesses have been agreed with management and progress against these agreed actions are monitored by Internal Audit and reported lo the Finance, Inveslmenls, Remuneration & Audit {FIRA) Committee on a regular basis. In the opinion of Internal Audit, no control weaknesses have been identified during the year which are of such significance to warrant specific disclosure in Ihe Annual Governance Statement. Page 24

MSSC Ww*80aEfY18&4C￿L￿￿8 REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 STATEMENT OF THE ACCOUNTING OFFICER The Chief Executive Officer ICEOI as designated Accounting Officer in accordance with the current len year Memorandum of Understanding with the MOD dated 13 December 2018, should ensure that MSSC and any subsidiaries to il or organisations sponsored by il, operates in respect of the GIA effectively and lo a high standard of probity. The MSSC should in respect of the GIA. Governance Have a governance structure which transmits, delegates, implements and enforces decisions Have trustworthy internal controls lo safeguard, channel and record resources as intended Work cooperatively with partners in the public interest Operate with propriety and regularity in all ils transactions Treat those with whom they deal fairly and honestly Offer redress for failure lo meet agreed stakeholder standards; and Give timely, transparent and realistic accounts of the MSSC Declslon-making Provide the Ministry of Defence (MOD) with clear, well-reasoned and timely information in accordance with the Memorandum of Understanding Make all its decisions in line with the strategy, aims and objectives of the charity Take a balanced view of the MSSC'S approach lo managing opportunity and risk Flnanclal management Comply with Public Sector Internal Audit Standards {PSIASI in order that the Principal Accounting Officer may receive an annual assurance on nsk management, governance and control Use its resources efficiently, economically and effectively, avoiding wa51e and extravagance Plan lo use its resources on an affordable and sustainable path, with agreed limits Carry out procurement and project appraisal objectively and fairly, using cost benefit analysis and seeking good value for money Use, where possible, management information systems to se¢ure assurance about value for money and the quality of dèlivery and so make timely adjustments Avoid over defining detail and imposing undue compliance costs, either internally or on the charity's stakeholders and others with whom il deals Have practical documented arrangements for working in partnership with other organisations, as appropriate Use internal and external audit lo improve its internal contro15 and performance In order for the Chief Executive Officer to provide assuran￿ on the above matters the following measures are in place.. Delegated authorities are formally agreed by the Council under Financial Standing Orders. Part of these require CEO authorisalion of all exp8nditure over £10,000 with three comparable quotations and a business plan required in respect of new proj8Ct5 Wlth a value in excess of £10,000 All payments are made from a single bank account or from approved centrally managed credit and debit cards An internal audit function performs regular reviews, following a three year audit plan based on the risk profile of Ihe charity Page 25

MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2023 STATEMENT OF COUNCIL'S RESPONSIBILITIES The Council a5 Trustees are responsible for preparing the Report of the Council and the financial slatements in accordan￿ with applicable law and regulations. Charity law requires the Council lo prepare financial statements for each financi81 year in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. including Financi81 Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under charity law the Council miJ*l nnt Approve the. financigl ¢lateme.nls ijnless Ih9yi are satisfied that they give a true and fair view ol the slate of affairs of the charity and of ils n8t outgoing resources for Ihal period. In preparing these financial slalemenls. the Council are required lo.. select suitable accounllno policies and then apply them consistently obseNe the methods and principles In the Charities. SORP make iuolgmenls and e81imale5 that are reasonable and prudent stale whether applicable accounting standards have been followed, subject to any malarial departures disclosed and explained in the financial slalemenls prepare the financial slatèmenls on the going concern basis unless il is inappropriate lo prtssume that th8 charity will continue lo operate. The Council are responsible for keeping adequate a¢¢ounling records that are sufficient to Show and explain the charity's transaction5 and disclose with reasonable accuracy al any lime the financial position of the charity and enable them to ensure that the financial State￿￿nIS comply with the Charities Act 2011, the Charity IA¢counls and Reports) Regulations 2008, the Charities and Trustee Investment (Scollandl Act 2005 and Charities Accounts (Scollandl Regulations 2006 las amended) and the provisions of the charity's constitution. They are also responsible lor safeguardin9 the asse15 of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Council are responsible for the maintenance and inlegrlly of the corpoTale and financi81 information included on the Charity's web511e. Le9islation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictlons. AUDITORS A resolution to reappoint Mazars LLP will be tablèd al the Annual Court. E8ch of the persons who are Trustees al the lime when this Trustees, r8POrt is approved has confirmed that.. so far as the Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and the Trustee has taken all the steps that ought to have beèn taken as a Tru81ee In order lo be aware of any relevant audit inlormation and to establish that the charity's auditor is aware ol that information. On behalf of the Board.. Jeremy Penn Council Memberand Chairman Martin Coles ChiefExe¢uliva OffiGer & Grant in Aid Accounting Offt'cer 1 August 2023 1 August 2023 Page 26

MSSC INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MARINE SOCIETY & SEA CADETS Opinion We have audited the financial slalemenls of The Marine Society & Sea Cadets I'the" parent charily'l and ils subsidiaries I'lhe group'l for the ye31 ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financlal slalemenls, including a summary of significant accounting policies. The financial reporting framework th81 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 Iuniled Kingdom Generally Accepted Accounting Pracli¢el. In our opinion, the financial stalemenls.. give a true and fair view of the stale of the group's and the parent charity's affairs as al 31 March 2023 and of th6 group's Income and expenditure for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Pracli¢e', and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standard5 are further described in the Auditor's responsibilities for the audit of the financial slalemenls section of our report. We are Independent ol the charity in accordance with the ethical requirements that are relevant lo our audit ol the financial slalemenls in the UK, including the FRC'S Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. Vve believe that the audit evidence we have obtained is sufficient and appropriate lo provide basis for our opinion. Concluslon6 rolatlng to golng concern In auditing the financial slalemenls, we have ¢onGluded that the trustees, use of the golng concern basis of accounting in the preparation of the financial slalemenls is appropriate. Based on Ihe work we have performed. we have not identified any material uncertainties relating lo events or conditions that, individually Dr collectively, may cast significant doubl on the group's or the parent charity's ability to continue as a going concern for a period of al least ￿e1ve months from when the financial slalemenls are aulhorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect to going ￿ncern are described in the relevant sections of this report. other Infomiatlon The other information Comprises the Information included in the Report of the Council, other than the financial statements and our auditor's report Ihereon. The Iruslees are resFX)nsible for the other information. Our opinion on the financial slalemonls does not cover the other information and, except lo the extent otheNise explicitly stsled in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audit of the financial slatemenls, our responsibility is lo read the other information and, in doing so, consider whether the other information is maleriolly inconsistent with the financial slalemen15 Qr our knowledge obtained in the course of the audit, or otherwise appears lo be materially misstated. If we identify such material inconsistencies or app8renl material mi5slatements, we are required to determine whether there is a material misstatement in the financial slalemenls or a material misslalemenl of the other information. If, based on the work we have performed, we conclude that there 15 a material misslatemenl of this other information, we are required lo report that fact. We have nothing to report in this regard. Page 27

MSSC INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MARINE SOCIETY & SEA CADETS Opinions on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Report of the Council which includes the Direotors, Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is oonsislenl with the financial statements., and the Directors, Report included within the Report.of-the CounGiI has-been-prepared in acGordance"wilh applicable legal requirements. Matters on which we are required to report by excoptlon In light of the knowledge and understanding of the ¢harlly and ils environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Direelors, Report included within the Report of the Council. We have nothing to report in respect of the following matters in relation lo which the Companies Act 2006 requires us lo Eport lo you if, in our opinion,. adequate and proper accounting records have not been kept, or Teturns adequate for our audit have not been received from branches not visited by us.. or the financial statement5 are not in agreement with the accounting records and returns.. or cèrtain disclosures of Iruslees, remuneration specified by law ara not made., or we have not received all the information and explanations we require for our audit. Re¥ponslbllitle8 of Tru8teoB As explained more fully in the Trustees, re5ponsibililies slalemenl Set out on page 26, the Trustee5 Iwho are also the directors of the parent charity for tho purposes ol cornpany lawl are responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair view, and for such internal control as the trustees detemine is necessary lo enable the preparation of financial statements that are free from material misstalemenl, whether due lo fraud or error, In pr8paring the financial stalernenls, the Trustees ao ffjsponsible for assessing the group's and the parent charity's ability lo ccnlinue as a going concern, disclosing. a5 applicable, mallers related lo going concern and using the going concern basis of accounting unless the trustees either inl8nd lo liquidate Ihe ¢harily or lo cease operations, or have no realistic allernalive bul to do so. Audltor's re8ponslblllllo8 for the audit of the flnanelal statèments Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, whether due lo fraud or error, and lo 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 IUKI will always delecl a material misslalemenl when it exists. Misstatements can arise from fraud or error and afe considered material if. individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users tsken on the basis of the financial statement5. The exlenl to which our procedures are capable of detecting irregularities. including fraud is detailed below. Srregularilies, including fraud, are InStan￿S of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo detect material misstalemenls in rospecl of irregularities, including fraud. Based on our understanding of the MSSC and ils activities, we considered that non-compliance with the following laws and regulations might have a material effect on the financial slalements, Charities Act 2011. tax legislation, safeguarding, pensions legislation, employment regulation and health and safety regulab'on, anti- bribery, corruption and fraud and money laundering. Page 28

MSSC MARN! SOCETY I SEA CADETS

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MARINE SOCIETY & SEA CADETS

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

• Inquiring of management and, where appropriate, those charged with governance, as to whether MSSC is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;

• Inspecting correspondence, if any, with relevant licensing or regulatory authorities;

• Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and

• Considering the risk of acts by MSSC which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax, the Companies Act 2006 and the Charities Statement of Recommended Practice. In addition, we evaluated the trustees' and management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to income recognition (which we pinpointed to the cut-off assertion), and significant one­ off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

• Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;

• Gaining an understanding of the internal controls established to mitigate risks related to fraud;

• Discussing amongst the engagement team the risks of fraud; and

• Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 the audit report

This report is made solely to the charity's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them 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 members as a body for our audit work, for this report, or for the opinions we have formed.

Signed: Date: 23 August 2023

Nicola Wakefield (Senior Statutory Auditor)

for and on behalf of Maza rs LLP

Chartered Accountants and Statutory Auditor

6 Sutton Plaza, Sutton Court Road, Sutton, Surrey SM1 4FS

Page 29

MSSC CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2023 Notes Unrestrieted Restricted Endowment 2023 2022 Funds £'ooo Funds £'ooo Funds £'ooo Total £'ooo Total £'ooo INCOME AND ENDOWMENTS FROM: DonJtlon8. 10gacie8 and other Income 587 987 1,574 3,353 Charitable activltle$ MOD grant in aid (for Sea Cadet5 activity} Seafarer education and SLJPPOrt Sea Cadet Corps tiaining OftshDre fleet income 12.429 12.429 14,438 515 718 587 517 718 587 654 285 143 15,520 1,820 12031 14,251 Other tradlng actlvltl69 MSSC ITradingl Limited 43 43 40 Inve8tment8 612 24 635 440 TOTAL INCOME 3,061 13,442 16,503 19,352 EXPENDITURE ON.. Raising fund8 Investment management Costs MSSC (Trading) Limited Donations and legacie$ 1 38 38 T1 322 322 4T9 364 557 NET INCOME AVAILABLE FOR CHARITABLE ACTIVITIES 2.696 13,442 16,138 18,796 The notes on pages 35 to SS form an integral part ol these accounts Donalknns and lega￿￿￿ indudÈg unreslrfclqd cos15 01 raisln9 both unrosiri&ed ano ￿$1￿Cted income. Page 30

MSSC CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) YEAR ENDED 31 MARCH 2023 Note8 Unre8trlcted Deslgnated Restricted Endowment 2023 2022 Funds £'ooo Fund¥ £'ooo Funds £'ooo Funds £'ooo Total £'ooo Total £'ooo Charitablè aetivities Safeguarding and supporting Sea Cadets activity and Infraslruclure Sea C2d81 Corps training Offshore fleet Profession81 seafarer education and support Promoting the Marine Society & Sea Cad8ts 1,088 703 287 8,009 4,436 2,470 9.096 5,139 2,757 8,098 3,593 2,143 686 244 930 925 51 494 492 Total charltable actlvlty costs 2,815 15,601 18,416 15,252 TOTAL EXPENDITURE 3,179 15,601 18,780 15,808 NET INCOME IEXPENDITUREI BEFORE INVESTMENT GAINS {LOSSESI 12,1591 12,2771 3,544 Not galns {1085e81 on Investments 12 18891 1889) 618 NET INCOME IEXPENDITUREI 11181 12,159) 18891 {3,1661 4,161 Tran•forn botwoen funds 17 314 13141 NET MOVEMENT IN FUNDS 11181 314 (2,4731 18891 13,166) 4, 761 TOTAL FUNDS 1 APRIL 2022 1.610 1,460 18,143 18.273 39.487 35.326 TOTAL FUNDS 31 MARCH 2023 17 1N92 1,774 15,671 17,384 36,321 39A87 All amounts rglato to continuing actlvltles. The notes on pages 35 to 55 forni an Integral part of these accounts Page 31

MSSC CONSOLIDATED BALANCE SHEET 31 MARCH 2023 2023 2022 Notes £'ooo £'ooo £000 FIXED ASSETS Intangible assets Tangible assets -Investmellls.- 10 11 435 12,755 661 13,176 --29,081- 33,858 32,409 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 477 238 573 497 9,110 10,180 13 8.973 CREDITORS Amounts falling due within one year 14 ￿5061 4,551 NET CURRENT ASSETS {LIABILITIESI NET ASSETS 36,321 39,48T THE FUNDS OF THE CHARITY Unreslrlcled funds Fixed assets Other 570 922 570 1,041 1.6tf 1,460 1,492 1,774 Designated funds Restricted funds Fixed assets Other 15 8.606 9, 529 15.871 18,143 dowmenl funds 16 17,384 18,273 18 36.321 39,487 Approved by the Trustees on 1 August 2023 and signed on their behall. Jeremy Pen Council Me Martin C Chief Executive Officer & Grant in Aid Accounting Officer ber & Chairman Th8 notes on pages 35 to 55 form an integral part ofthese accounts Page 32

MSSC CHARITY BALANCE SHEET 31 MARCH 2023 2023 2022 Note$ £'ooo £'ooo £000 FIXED ASSETS Intangible assets Tangible 8ssels Investments 10 11 12 435 12.755 661 13,116 20.086 33,863 32,414 CURRENT ASSETS Stocks Debtors Cash al bank and in hand 477 2S5 .210 573 503 9,070 10,146 13 8,942 CREDITORS Amounts falling due within one year 14 NET CURRENT ASSETS (LIABILITIES NET ASSETS 36,297 39,459 THE FUNDS OF THE CHARITY Unrestricted funds Fixed asset5 Other 570 898 570 1,468 1,774 1, 583 1, 460 Designated fvnds Restricted funds Fixed assets Olh8r 15 8,606 9,529 8,614 18.143 15,671 Endowment funds 16 17.384 18 36,297 39,459 Approved by the Trustees on 1 August 2023 and signed on their behalf. Jeremy Penn Council Member & Martin Coles Chief Executive Officer & Grant in Aid Accounting Officer airman The notes on pag95 35 to 55 form an integral part of thesè ac¢ounts Page 33

MSSC CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2023 Notes 2023 2022 £'ooo £'ooo CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used byllprovided by opgratlnu actlvltlès -{864) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received Investment income Purchase of fixed asséts Proceeds from sale of fixed assets Purchase of investments Proceeds from sale of investments S99 16001 440 (4,631) 10&11 12 12 18,3021 8,275 (6,453) 6,485 Not ca8h 98nerat8d byllu8•d Inl Inv98ting acllvllle8 11 4.153 INCREASEIIDECREASEI IN CASH AT BANK AND IN HAND IN THE YEAR 1853} 4,119 CASH AT BANK AND IN HAND 1 APRIL 2022 9.110 4,991 CASH AT BANK AND IN HAND 31 MARCH 2023 8,258 9.110 NOTES TO CASH FLOW STATEMENT 2023 2022 lal Roconclllatlon of net Income lexpenditurel to Not cash flov￿ trom operatlng actlvltles £'ooo £'ooo Nel incomel{expendllure} Depreciation (Gainslllosses on inveslrnenls Gains I ILossesl on the sale of tangible fixed assets Decrease in stocks Decrease in debtors IncreasellD8¢reasel in creditorg 13,1661 1.163 889 20 97 259 4.161 1,184 (618) (268) 54 5,583 10&11 12 510 163S) (1,385) (440) Interest rèceived and investment income Net cash (used byyprovided by operatlng activitles 18641 8,272 The notes on pages 3S to 55 fonn an integral part of these accounts Page 34

MSSC NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 ACCOUNTING POLICIES Basls of Preparation The financial statements have been prepared on a consolidated basis in accordance with the Slalement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021, the Charities Acl 2011 and UK Generally Accepted Accounting Practice. The financial statements have been prepared to give a 'lrue and fair. view and have departed from the Charities (Accounts and Reportsl Regulations 2008 only to thè exlenl required lo provide a 'lrue and fair view,. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The charity meets the definition of a public benefit enlily under FRS 102. Assets and liabilitiès are initially reeognised al historical cost or transaction value unless otherwise slated in the relevant accounting policy. The results of the charity and ils subsidiaries are consolidated on a line.by-line basi$ after Intercompany transactions and balances have been eliminated. The charity is well placed lo manage the business risks we face. The position is supported by a strong cash flow, a sufficient level ot ieserves and a good relationship with our key funders. We therefore have a reasonable expectation that we have sufficient resources lo continue in operational existence for the foreseeable future and believe that there are no malfjrial uncertainties that call into doubl the 8bilily of the charity lo continue as a going concern. hilst one of the main charitable purposes of the Fund is to support the activities of Sea Cadets and seafarers, the level of this necessary expenditure is al the discretion of the Trustees and can be adjusted during the year. The Trustees have also considered the Group's working capitsl and capital expenditure requirements. As a result of the foregoing the Trustees are satisfied that il Is appropriate to prepare the accounts on a going concern bas1S. The key sources of estimation uncertainty that have a significant effect on the amounts recognisèd in the financial 51atemenls are described in the accounting policies below. The TrLJslees are not aware of any areas where significant changes lo key accounting assumptions concerning the future or estimation uncertainty affecting assets and liabilities al the balance sheet date are likely lo result in a rnalerial adjustment to their Carrying amounts in the next financial year. b) Donatlon8, legacles and othgr income Income is recognised when the charity has earned entillemenl, receipt is probable and the amounts involved can be measured with ieasonable certainty. This policy is applied as follows.. Donations are recognised when received, grants are re¢ognised when receivable unless they are reslricled for use in a future accounting period in whiGh casé they are deferred. Legacies are recognised at the earlier of receipt, completion of eslale accounts or notification by the executor5 of an estate of a distribution. Income received from the sale of goods and service is recogni5ed in the year the sale occurs or the good is provided. Income from training, events and offshore activities is recognised in the year the activity or event is delivered. Page 35

MSSC NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 ACCOUNTING POLICIES {CONTINUEDI Expondlture Expenditure is classified by direct allocation of costs and best estirnates of usage of costs where relevant, as follows.. Raising funds.. -The ¢osl.of raising fiinds_romprises_cosls associated wilh_raising funds.from.all.sources-and. Includes fundraising costs, Gost5 of events and investment managernenl costs. Charitable expenditure,. Direct costs are allocated lo functional cost headings based on supporting cost centre analyses. Overheads lin¢luding irrecoverable VATI are included in support costs and are allocated to functional cost headings on the basis of headcounl (see note 91. Irrecoverable VAT is included in support costs as an overhead cost. Governance costs are included in support costs. dl R8cognltlon of Ilabllltles and grants Liabilities are recognised eilhor on the dale goods or seTvic&s arè received. or when recipients are given a ffjasonable expectation that grants will be made and the conditions of those grants have been mel Deflnitlon of liquid resources Liquid resources included on the cash flow statement are those h8ld as cash at bank and in hand. Penslon cost8 Pension contributions are made to a defined contnbulion pension scheme and are wrillen off to the Slalement of Financial Activities as they are in¢urred. The charity also makes contributions lo a multi- employer defined benefit scheme in respect of former employees. These amounts are also wrillen off as Incurred together with any known commitments lo lund the deficit of the scheme. where they relate lo past service. gl Intsnglble and tanglble flxed a$$ots Capital items with a value over £5,000 are Irealed as fixed assets. Depreciation l amortisalion is provided on all fixed assets to write off the cost of these assets over their expected useful life. The following straight line depreciation rates have been used.. Freehold buildings Freehold improvements Leasehold improvements Training ships and yachts 1.66° 1 OV/0 Lease term 5Yo Boats and dinghies Motor vehicles Furniture, Fixtures & Fittings Computers & SO￿are 10¥0 20010 202 Lambelh Road continues lo be treated in line with this policy during ils current marketing for sale, pending exchange of contracts, following which it will be reasse55ed on a market value ba51S. h) InvgstrnentS Investments are included in the 8alanc8 Sheet at fair value. Re21ised investment gains and losses represent the difference between the fair value of the investments at the beginning of the period, or the cost if purchased during the period. and the sale proceeds. The Trustees review the valuation of property investments for impaimienl every year and revalue the investments on a market basis al least every five years. stocks Stock is valued at the lower of cost, including irrecoverable VAT, and market value. Page 36

MSSC NOTES TO THE ACCOUNTS ICONTINUEDI YEAR ENDED 31 MARCH 2023 ACCOUNTING POLICIES ICONTINUEDI Endowment and Rg$trictsd Funds Reslricled funds represent gifts or grants. which carb only be applied for a purpose specified by the donor or grantor. All monies received from the MOD are Irealed as reslricled funds. These amounts are carried forward as deferred Income where there 15 a reslriclion on when monies can be spent. Designated funds for investments in boat stations and outreach work have been sel up. Endowment funds are classified as either permanent - those where the donor has specified that the capital of the gift cannot be expended and that only the income arising from the ¢apilal may be used for the specified purpose. Allernalively, they may be expendable if they relate to those that were given where the intention was clearly for the donation lo be held for the longer term bul where the funds are ultimately expendable. kl Herltage asset• The charity has received donations of various naval and maritime paintings and artefacts over ils 265 year history. A number of these are housed al the National Maritime Museum in Greenwich. These assets are retained for their historical and cultural significance in relation to the work of the charity, which illuslrale and show the unique service the charity has given lo the nation. Th6 assets are not held on the balance sheet as they were either donated or have long since been wiitten off, and are not held for their fi'nancial value, however the a55ets were valued for insurance purpose5 duiing the financial year, with a total valuation of £617K. 11 1$ not the policy of the charity lo obtain further artefacts bul lo preserve those of heritage signifi¢ance that it owns, which il does with the help of the National Marillm¥ Museum. Alon9side the planned relocation of the natsonal offices ol the charity, the Trustees reviewed the artefacls held and determined those that should be hald for poslerily, those that should be gifted lo relevant museums and those lo be sold. Effecting this Is ongoing. No material art8lacls have been acquired in Ihe last live years, Financlal 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 al transaction value and subsequently measured at their selllemenl value. Financial assets held at amortised cost compnse cash at bank and in hand, together with trade and other debtors, and accrued income. Financial liabilities held al amortised cost comprise, trade and other creditors, grants payable and accruals. Income arising from financial 8ssels, comprising bank interest is recognised within income and expendiluie. Non property investments, including bonds held as part of an investment portfolio, are held al fair value al the balance sheet dale, with gains and losses and investment income being recognised within income and expenditure. Investments in subsidiaries are held al cost less impairment. Page 37

MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 DONATIONS, LEGACIES AND OTHER INCOME Unrestricted £'ooo Re8trlcted £'ooo Endowment £'ooo Total £'ooo 2022123 analy818 of Income Donation5 and subscriptions Legacies Other Major Grants Boat slalion appeals Bursaries Other restricted fund5 Areas, Branches and Other Income -118 123 118 123 432 135 64 245 457 432 135 64 245 111 987 346 587 1,574 2021122 analysis of Income Donations and subscription5 Legacies Other Major Grants Boat Station Appeals Bursaries Other reslricled funds Coronavirus job retention scheme Areas, Branches and Other Income 149 45 149 45 1,098 346 io 475 I,Q98 346 io 415 266 7,289 3,353 1,218 2.135 Other Major Grants I Includes grants from Seafarers, UK, Tnnity House Maritime Charity and Merchant Navy Welfare Board Boat Statlon Appears 2 Include major donations from Edward Cadbury Charitable Trust and DCMS Other Ro8trlct&d Fund$) Include major donations from Slelios Philanthropic Foundation, IFAN, Shipwrights, Gosling Foundation, GB Partnerships Foundation, Jack Pelchey Foundation and Michael Uren Foundation Page 38

MSSC I￿9￿£T11￿clLf NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 INCOME FROM CHARITABLE ACTIVITIES Unrestritted 2023 £'ooo Restricted 2023 £'ooo Total 2023 £'ooo Unrestricted 2022 £'ooo Restricted 2022 £'ooo Total 2022 £000 MOD grant in aid Ifor Sea Cadets activilyl Seafarer education and 5UPPOrt Sea Cadet Corps training Offshore fleet Income 12,429 12,429 14,438 14,438 515 517 583 71 653 718 718 285 285 587 587 143 I,oii 143 1,820 12,431 14,251 14,509 15,520 In addition lo the MOD grant in aid (for Sea Cadets aclivityl. the charity receives significant support in kind from the MOD. El8ven Royal Navy personnel are provided on loan, at an estimated value lo the charity of £700K. Six area offices, three Sea Cade15 training cenlres, Sea Cadets stores, the offshore offices and berthing faoilities are also provided al MOD premises, together with ad hoc use of MOD training estate. Fuel for the offshore vessels from Royal Navy sources, some uniforms and various specialist stores items are also providod by the Royal Navy. The Trustees hav& considered the very significant difficulties in undertaking a valuation of this support in kind, including whether a reliable, objective valuation would be pts5sible, and the very significant Costs which would b6 involved. They have concluded that the costs involved in undertaking the valuation would not be justified by the benefits lo the users of the accounts in terms of their beller understanding of the resources available lo the charity and to the chafity itself from having thi5 financial information. INVESThIENTS Unrestrl¢tod 2023 £'ooo Rèstrlctod 2023 £'ooo Total 2023 E'ooo Unreslrictsd 2022 £'ooo R&stricted 2022 £'ooo Total 2022 £'ooo Investment Income (excluding Rental income) Rental income Bank interest 377 198 36 24 401 198 36 2T6 141 23 299 141 612 24 635 41T 23 440 Page 39

MSSC NOTES TO THE ACCOUNTS ICONTINUEDI YEAR ENDED 31 MARCH 2023 ANALYSIS OF EXPENDITURE Unrestrlcted 2023 Restrlcted 2023 Total 2023 UnTrslricled 2022 Restricted 2022 Total 2022 -£'ooo- -£'ooo- £'ooo- £000 £'ooo '£'ooo Investment management fees Fundraising MSSC (Trading) Limited Sdf8guarding and supporting Sea Cadets activity and Infrastructure Sea Cadet Corps training Offshore fleet Professional seafarer education and support Promoting Sea Cadets activity 38 322 38 322 71 479 71 479 1,088 8,009 9,096 326 7,772 8,098 703 287 4,436 2,470 5,139 2,757 205 88 3,388 2,055 3,593 2,743 686 244 930 715 210 925 51 442 18 1,909 474 13,899 492 3,179 15,601 18,780 15,898 Dlrect Salary Costs Support costs (note 71 Grants Other Total £'ooo £'ooo £'ooo £'ooo £'ooo 2022123 analy818 of ¢ost8 Investment management fees Fundraising MSSC (Tradingl Limited Safeguarding and supporting Sea Cadets activity and infrastructure Sea Cadet Corps training Offshore fleet Professional seafarer education and support Promoting Sea Cadets activity 38 67 38 322 215 41 1,150 3.338 1,458 763 3,322 2,858 1,539 1,286 820 353 9,096 5.139 2.757 102 32 313 206 S13 216 72 71 930 494 1,287 6.293 8,557 2.643 18,780 Page 40

MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 S. ANALYSIS OF EXPENDITURE ICONTINUEDI Direct Salary Costs Support costs Inotg 71 Grants Other Total £'ooo £'ooo £'ooo £'ooo £'ooo 2021122 analysls of costs Investment management fees Fundraising MSSC (Trading) Limited Safeguarding and supporting Sea Cadets activity and infrastructure Sea Cadet Corps training Offshore fleet Professional seafarer education and support Promoting Sea Cadets aolivity 71 104 71 479 326 48 815 11 50 3,352 1,248 713 2,414 7,366 964 1.518 968 417 8, 098 3,593 2,743 2T 304 154 6,097 510 254 5, 683 85 84 3,719 925 492 903 15,808 Other costs include all direct expenditure in relation lo areas, branches, onshore and offshore activities. 6. GRANTS PAYABLE Grants payable were as follows.. 2023 £'ooo 2022 £'ooo Grants lo in51ilulions Grants lo individuals 885 431 879 667 1,316 1, 546 Individual granls given are small and not material within the overall total. Grants lo inslilulions comprise grants made lo Sea Cadets units lo reimbufse expenditure towards premises, minibuses, junior units and emergency needs. 11 also includes the provision of boats and equipment lo units and unit hubs. Grants lo indivlduals comprise grants lo Sea Cadets volunteers for uniforms and bursaries ft)r cadets to take part in aclivilies. Support costs in relation to grants payable are included within note 7 below. Grants payable al the year-end are included with creditors (see note 141. Page 41

MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 SUPPORT COSTS The support cos15 of the charity consist of four 8lemenls'. Management, Finance & Digital, Premises, and Human Resources. These costs have been apportioned across the work of the charity on the basis of staff numbers in each functional area. The apportioned costs are set out below.. 2023- Flnance and Dlgltal Human Re80ur ¢e8 Managg- mgnt Pr•ml$es Total Total £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Fundraising Safeguarding and supporting Sea Cadets activity and Infrastructure Sea Cadet Corps training Offshore fleel Professional seafarer education and support Promoting Sea Cadets activity 12 11 12 41 48 128 833 255 270 1,286 1,578 83 36 403 174 162 89 172 74 820 353 968 417 10 21 20 21 72 85 35 14 15 71 84 2023 270 1,278 531 564 2,643 3,119 2022 195 1,507 888 529 3,119 Included within Support Costs are salary costs of £1.273K12022.' £1, 2321Q. Irrecoverable VAT costs included within Support cosls amounted to £88K12022'. £140K). Total Governance costs included in Support were £189K12022.' £162K). These included auditors, fees for external audit £54K12022.' £24K) and lax advice £1 K12022. £4K). Page 42

MSSC NOTES TO THE ACCOUNTS ICONTINUEDI YEAR ENDED 31 MARCH 2023 SUBSIDIARY ORGANISATIONS The Sea Cadet Association is a charitable company regisl8red in England and Wales (company number Number 404951 and Charity Number 3061411. The charity was dormant in the current year and both nel income and nel asselslfunds for the year were £nil12022.' nel income and net assetslftjnds,. £nilJ. The organisalion is retained as it is counterparty lo a number of leases held by Sea Cadets units and also acts as a vehicle for the receipt of occasional legacies. MSSC (Trading) Limited is registered in England with company number 9476222. The charity has 8 £5K 12022." £5K) investment in MSSC ITradingl Limited Inole 121, representing 1 OOD/o of the issued share capital of that company. The results of the company lor the year and its balance sheet al the year end were as below. The company made a charitable donation in the year of £5K12022". £5kl to the charity. The company anticipates making a charitable donation lo the charity of £24K in 2023124 based on profits earned in 2022123. Year-end nel a55ets stand al £29K12022'£331Q, 2023 £'ooo 2022 £'ooo Turnovof Purchases for r&salè Other operating charges Prollt on Ordlnary Actlvltlos before taxatlon Taxation Profit on Ordlnary Aetlvltles aftor taxatlon 28 35 14 24 {7) 28 24 28 Retained profil at 1 Aprll 2022 Charitable donation to the Marine Society & Sea Cadets 151 Retalned profit at 31 March 2023 24 28 2023 £'ooo 2022 £000 Current A$8•ts Debtors Cash al bank and in hand 23 48 71 14 40 54 Credltors Amounts falling due within one year 1421 (21) Not Current A88ets 29 33 Net Assets 29 33 Capital and Re8er¥es Called up share capital Profit and loss accoLtnt 24 28 29 33 Page 43

MSSC NOTES TO THE ACCOUNTS (CONTINUED YEAR ENDED 31 MARCH 2023 STAFF COSTS 2023 £'ooo 2022 £'ooo Wages and salaries Social security costs Pension fund contributions Health insurance 6,880 622 444 62 6,254 555 419 fQ2 7,329 8.008 The average head count was 193 slaff12022.' 186) and the average full time equivalent numbers of employees were as follows.. 2023 2022 Fundraising Supporting Sea Cadets activity and infrastructure Sea Cadets ITaining Offshore fleet Promoting Sea Cadets activity Saafarer education and support 83 65 22 84 61 22 186 183 Included within staff ¢osls are £1,OOOK12022'. £1,232KI support costs and £nilK12022. £nilK) costs capilalised within Fixed Assets, The key management personnel of the charity comprise the Trustees, the Chief Executive Officer and the six12022.' six) Directors in F)osI (senior management leaml listed under Executive Management on page 56. Their lolal iemuneration, (including those not in post al the year-endl, including social security costs and pension contributions was £714K12022.. £651K), Thtr Trustees did not receive any remuneration from the charity during the year bul were reimbursed for some travel costs, where they chose lo claim. Five {2022'. Iwol Trustees ¢laimed travelling expenses lolalling £1.2K12022.' £0. TK). Ten employees earned over £60K {2022.' sev8nl. Bandings, inclusive of allowances Iwhere payable) were., 2023 2022 £60K- £70K £70K. £80K £80K- £90K £90K- £100K £110K-£120K These figures include pension allowances paid lo one individual12022.' on81 in lieu ol employer pension contributions that would otherwise be payable but not shown within remuneration. Page 44

MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 10. INTANGIBLE FIXED ASSETS {GROUP AND CHARITY Computern & softwaro Total £'ooo £'ooo COST At 1 April 2022 Additions in period Disposals in period At 31 Mar¢h 2023 1.826 1,626 40 AMORTISATION At 1 April 2022 Provision in period Disposals in period At 31 Mar¢h 2023 965 965 266 Net book valu& At 31 March 2023 435 435 Net book value At 31 March 2022 661 661 Above includes £nilK12022.' £47K) in respect of assets under construction, Page 45

MSSC NOTES TO THE ACCOUNTS {CONTINUEDI YEAR ENDED 31 MARCH 2023 11. TANGIBLE FIXED ASSETS (GROUP AND CHARITY) Froehold Building building Improvg- mgnts £'ooo Ships Furnltur• & boats & flttlngs Motor vehicles Computers Total £'ooo £'ooo £'ooo £'OOD £'ooo £'ooo COST At 1 April 2022 Additions in period Disposals in period At 31 March 2023 717 8,814 10,697 354 115 21,186 161 399 560 125} 1491 717 354 465 115 DEPRECIATION Al 1 April 2022 Provlsion In period Disposals In period At 31 March 2023 615 1,632 5,054 319 387 84 8,071 12 304 521 36 15 897 25 25 627 327 398 79 8,943 Not book value At 31 March 2023 90 27 67 36 Net book v8lue Al 31 March 2022 102 7,182 5,643 36 703 51 Building improvements include a888ts und&r construction £340K12022.' £204K). Page 46

MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 12. INVESTMENTS GROUP INVESTMENTS Investment Portfollo £'ooo Propertles £'ooo Cash £'ooo Total £'ooo Falr Yalue al 1 April 2022 18.247 634 Additions at cost 7,949 7,949 Disposal proceeds 18,2751 18.2751 Movement in Cash 353 353 Gain lor the year {8891 18891 Fair value al 31 March 2023 17.032 1.200 987 19,219 CHARITY INVESTMENTS Investment Portfollo £'ooo Propertles £'ooo Cash £'ooo Subsldlary £'ooo Total £'ooo Fair value al 1 April 2022 634 Addibons at cost 7,949 7,949 Disposal proceeds {8,2751 18,275} Movement in Cash 353 353 Gain for the year 1889) 18891 Fair value al 31 March 2023 17,032 1,200 987 19.224 All investments are held In the UK. There 15 one single inveslment in excess of of the portfolio, Vanguard Funds PIC S&P 500 (5.70/DI. £5,844K was directly in overseas, equities The subsidiary investment is in MSSC (Trading) Limited, note 8. The cost of the Investment Portfolio including Cash was £15,292K {2022." £14, T18kl. Fund analysis of gains and Ilossesl: 2023 £'ooo 2022 £,900 618 Endowment Inote 16) 889 Total gains Ilossesl {8891 618 Page 47

MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 13. DEBTORS Group 2023 Gmup 2022 Charty 2023 Charity 2022 £'ooo £'ooo £'oDo £'ooo Trade debtors Amounts due from MSSC (Trading) Ltd Loans Other taxation and social security Other debtors Prepayments Accrued income -44 286 33 28 273 121 64 159 50 121 159 50 238 497 255 503 14. CREDITORS.. Amounts falllng due wlthln one y•or Group 2023 Group 2022 Charlty 2023 Charity 2022 £'ooo £'ooo £'ooo £000 Trade creditors Amount due lo Slater Other laxalion and social security Grants payable Other creditors Pension provision Inole 19) Accruals Deferred income 276 11011 171 1,723 616 396 60 490 1, 167 597 278 {101) 171 1,723 616 396 60 490 1,167 591 1,922 454 7.428 413 4,551 1,920 454 5,059 1,428 412 4,550 5,061 £513K12022'. £407K) of Grants payable at 1 April 2023 ware paid in the year. and £241 K12022'. £366K) of further grants were provided during the year to 31 March 2023. Payment of grants made is mostly conditional on the balance of fvnding for property projects being raised by the granl rècipient. £536K 12022.. £2T5kl of accruals and £40K12022'. £39kl of deferred income balances at 1 April 2022 are included in creditors at 31 March 2023. These Should be released in 2023124. Page 48

MSSC NOTES TO THE ACCOUNTS ICONTINUEDI YEAR ENDED 31 MARCH 2023 15. RESTRICTED FUNDS (GROUP AND CHARITYI Balance 1 April 2022 Movement ol funds Income Incomel Interest Balance 31 March 2023 Donor Purpose Expend -Iture Transfer £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo The Sea Cadet Corps MOD 2,692 12,129 111.8761 13141 2,631 Various Offshore ships and boa18 5,861 178 18091 5,239 Various Sea Cadets trainlng 2,180 415 {9181 10 1,687 Various Cadet expansion Programme 4,340 1163) 4,177 Sea Cadets unil grants Various 1,498 445 11,2531 688 Varlous Area Sea Cadets Training 906 111 {1941 828 Various Seafarer training 242 92 1173) 160 Various Bursaries 262 48 1146 165 Corbyn Memorial Fund Nauliogl education 50 (281 22 Thomas Gray Memorial Maritime Science Trust and Technology 40 140 Various Other 74 74 18,143 13,418 115,6011 24 13141 15,671 (continued) Page 49

MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 15. RESTRICTED FUNDS (GROUP AND CHARITY) {20211221 Balance 1 April 2021 ovgment of funds Incomel Interest Balance 31 March 2022 Donor Purpose Ineom Transfer Expend -Iturg £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo The Sea Cadet Corps MOD 14.018 111,3271 2,S92 Various Offshore ships and boats 6.299 247 16911 5.861 Various Sea Cadets training 1,328 1.354 15121 10 2,180 Various Cadet expanslon Programme 4,510 {1691 4,340 Sea Cadets unil grants Various 1,573 523 16011 1.496 Various Area Sèa Cadet Training 945 13081 906 Various Seafarer training 261 190 12101 242 Various Bursaries 298 45 1811 262 Corbyn Memorial Fund Nauli¢al education 50 50 Thomas Gray Memorial Maritime Science TTUSI and Technology 39 40 Various Other 74 74 15,377 16,643 113,8991 23 18,143 Page 50

MSSC NOTES TO THE ACCOUNTS ICONTINUED) YEAR ENDED 31 MARCH 2023 16. ENDOWMENT FUNDS (GROUP AND CHARITY) Balance 1 April 2022 £'ooo Movement of fund8 Investment Donationsl returns (Iransfèrsl £'ooo £'ooo Balance 31 March 2023 £'ooo Donor Purpos Corbyn Memorial Grants and payments Fund for Nautical Education 237 {121 225 Thomas Gray Memorial Tiust Advancement of Maritime Technology and Science {61 108 Deslilule Sailors Fund Assisting distressed merchant seamen 71 68 Various Providing subsidised berths and awards lo Sea Cadets 558 1271 631 Expendable Endowed Funds Held for general purposes 17,294 18411 16,453 18,273 (889) 17,384 Balance 1 Aprll 2021 £'ooo Movement of funds Investment Donatlon81 returns Itran8fersl £'ooo £'ooo Balance 31 March 2022 £'ooo Donor Purpo80 Corbyn Memorial Grants and payments Fund 229 237 NautScal Education Thomas Gray Memorial Trust Advancement of Maritime Technology and Science 11Q 114 DeslilLJle Sailors Fund Assisting distressed merchant seamen 68 71 Various Providing subsidised berths and awards to Sea Cadets 539 19 558 Expenclable Endowed Funds Held for general purposes 16,453 584 256 17,294 17,399 618 256 18,273 Page 51

MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 17. DESIGNATED FUNDS Balance 1 April 2022 £'ooo Movement of funds Investment Donatlongl returns {transfersl £'ooo £'ooo Balance 31 March 2023 £'ooo Fund Cad&t Outreach 83 83 Boat slalion 1,004 1,007 SC future prolecis 373 373 Expedition equipment 198 198 Environmental grants 113 113 1,460 314 1,774 Balance 1 Aprll 2021 £'ooo Movgmgnt of funds Inv•$tmont Donatlon$l roturns Itran$f¢r81 £'ooo £'ooo Balanco 31 March 2022 £'ooo Fund Cadet Oulre8ch 83 83 Boat station 754 250 1.004 SC future projects 373 373 837 623 1,460 18. ANALYSIS OF NET ASSETS BETWEEN FUNDS GROUP Intangibl• & tangiblè flxed assets £'ooo Inve5tmont8 Not ¢urront assèts and long term Ilabilitles £'ooo 2023 Total £'ooo £'ooo Rostrictgd funds 12.484 3,187 15.671 Endowment funds 135 17.249 17,384 Oesignated tund$ Unrgstricled funds 1.460 510 314 1.774 1.492 570 411 Total 13,189 19.219 3,912 36.321 Page 52

MSSC NOTES TO THE ACCOUNTS (CONTINUED YEAR ENDED 31 MARCH 2023 ANALYSIS OF NET ASSETS BETWEEN FUNDS {CONTINUEDI GROUP Intangible & tangible flxed assets £'ooo Invostrnonts Not current assets and long term Ilabllltles £'ooo 2022 Total £'ooo £'ooo Restrlcted fund8 12.951 5,192 18, 143 Endowment lund8 256 18,017 18,273 D881gnated fvnds 1, 460 7,460 Unre8trlcted fund8 570 604 437 1,611 Total 13,776 20,081 5, 630 39,487 CHARir Intanglbl8 & tanglblg flxed a8sets £'ooo Investments Net current ass8ts and long term 1Sablllt198 £'ooo 2023 Total £'ooo £'ooo Rostrlcted fund8 12,484 3,187 15,671 Endowm•nt funds 135 17,249 17,384 D•$lgnat•d funds Unre8trlct8d funds 1,460 515 314 1,774 1,468 570 382 Totsl 13,189 19,224 3,883 36,297 Page 53

MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS {CONTINUEDI Intanglble & tangiblg fixod assets £'ooo Investments Net current assets and long torm Ilabllitles £-'ooo 2022 Total £'ooo- £:000 R8strlctod funds 12,957 5,192 18, 143 Endowmgnt funds 256 18,017 18,273 Dtr$lgnatod funds Unr&8trlcted fund8 1,460 609 1,460 1,583 570 404 Total 13, 777 20.086 5.597 39,459 18. TAXA TION No corporation lax is payable due lo the charitable status of the aclSvitiès of the chanty. 19. PENSION SCHEMES {GROUP AND CHARITY) A number of former employees of the former Marine Society and of the Sea Cadet Association are members of the Merchant Navy Offi'cers Pension Fund - MNOPF (New Seclionl. The fund is active, though closed lo lulure accrual Dn 31 Ma￿h 2016. However. the MSSC continues to have a Share ol the nel deficit In the fund. The actuarial report as at 31 March 2022 valued assets in the scheme at £2,957M and the liabilities al £2,887M giving a nse lo a scheme wide surplus of £70M. A$ al the dale of the 2022 valuation no deficit contributions were required. All current employees are members of a contract based defined contribution scheme. £444K12022." £419K) was paid by the charity during the year of whlch £55K12022'. £52K) was outstanding al the year end and included in creditors. Page 54

MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2023 20. RELATEO PARTY TRANSACTIONS ICHARITYI The Chief Executive Officer is an ex officio Irusteeldirector of the Royal Albert Dock Trust during the year, the charity paid rent lo the Royal Albert Dock Trust's London Regatta Centre tolalling £60012022.. £2TKI. Three of the Trustees of the charity are trustees of Trinity House Maritime Charity. During the year the charity received a grant of £130K12022'. £1 IOK) from the Trinity House Maritime Charity. No amounts were outstanding to the charity al the year end. One of the Trustees was appointed Chairman of IFAN maritime in November 2019. They support MSSC on various education81 projects, during the year the charity received a grant of £40K12022.' £60k}. One of the Trustees is an Assoclate Member of Ste1105 Philanthropic Foundation who has supported Sea Cadets projects with a grant of £30k12022. £71 kl. Two Trustees, the Chief Executive Officer and another Director are members of the Company of Shipwrights who have funded £14k for bursaries12022. £13kl. One of the Trustees is a Fellow of the Nautical Institute who rent office space in London amounting 10 £21 k 12022., £64kl. One of the Trustees is Headleacher of the London Nautical School. During the year the charity paid a grant of £39k12022.' £nS11 The charity was paid £4K12022.. £4K) for management and accounting service8 from ils subsidiary undertaking MSSC (Trading) Limited Inote 81. A charitable donation amounting to £5K12022.' £5kl was received from the subsidiary. The charity anticipates receiving a charitable donation from the subsidiary ol £24K in 2023124 based on profits earned by the company in 2022123. Al the year end, the charity was owed £24K12022'. £19K) by the sub51diary and this amount is included in charity debtors. One Trustee of the charity, Simon Figgis, and employèes, Jenny Howard and Paul Wilkinson. are directors of MSSC (Trading) Limited. Two Trustees, David Dingle and Jonathan Robertshaw are directors of the Sea Cadet Association. 21. STATUTORY INFORMATION The Marine Society and Sea Cadets IMSSCI is a charity registered with the Charity Commission in England and Wales Iregislration number 3130131 and with the Office of the Scottish Charity Regulator Iregislralion number SC0378081. The registered office is 200b Lambelh Road, London SE1 7JY. Page 55

MSSC COUNCIL MEMBERS AND EXECUTIVE MANAGEMENT YEAR ENDED 31 MARCH 2023 Council members and executive management during the year. and as at the dale of this report, were: PRESIDENT: Admlral Sir Philip Jones GCB DL COUNCIL MEMBERS The_council members who served_during_the_year were.. Jeremy Penn Ichairl Liz Cassidy (Vice Chair} Robert Woods CBE 2 Simon Fiqois Ll Cdr ISCC) Jason Kinghom RNR 2. 3 Irelired 271011231 Steve Smith 2, 3 Ico-opled 271011231 Alan Marsh MBE FICS I John May OBE OL 2.3 Captain lan McNaughl CVO MNM Vice Admiral Sir Jonathan Woodcock KCB OBE 2. 3,4 David Derbyshire Léonie Austin David Dingle CBE1. Jonathan Robertshaw 1.2 Michael Schofield 2, 3 Garelh Hampton Laurelle Brant 2. 3 Christine Baldwin MRICS 2. 3 (elected 121101221 Lukshmy Miranda Nagalingam lelecled 121101221 {Relired 121101221 Council Mémbers are members of the following committees as annotated above. The Flnance, Investment. Remuneration and Audit Committee The Policy Development and Nominations Committee The Safely, Safeguarding, Inclusion & Risk Committee The National Sea Cadets Advisory Council The National Sea Cadets Forum EXECUTIVE MANAGEMENT Chief Executive Officer Martin Coles CBE FRICS ACIArb Captain Sea Cadets & Director of Operations. Captain Neil Downing RN Director of Finance & Digital and Company Secretary Jenny Howard Director of Young People, Volunteer & Business Paul Wilkinson Support Director of Sea Cadet Learning Director of Fundraising and Communlcallons Director of Human Resources Dir8clor of Maritime Training and Development Heather Williams Daniel McAllisler Pelrina Brooker Darrell Bale provided on loan from the Royal Navy Page 56

MSSC PROFESSIONAL ADVISERS YEAR ENDED 31 MARCH 2023 The principal professional advisers during the year were.. Audltorn: Mazars Floor, 6 Sutton Plaza, Sullon Court Road, Sutton, SM1 4FS 8ank&r8.' Barclays Bank plc 1 Churchill Placo London, E14 5HP National Westminster Bank plc 250 Reg8nl Street London, W1B 3BN Royal Bank of Scotland plc 62-63 Threadneedle Street London, EC2R 8HP Inve81ment Advlsers and Custodlans: Inveslec Wealth & Investment Ltd 2 Gresham Street London, EC2V 7QN KW Investment Management Ltd 13 Austin Friars London, EC2N 2HE Lggal •dvl$gr•: Farrer & Co LLP 66 Lincoln's Inn Fields London, WC2A 3LH Moon Beever 21A John Street London, WC1N 2BF Russell Cooke 2 Pulney Hill London, SW15 6BA Insurance 8rokor8: Arthur J. Gallagher Insurance Brokers The Walbrook Building 25 Walbrook London, EC4N 8AW Pgnslon Advlser8: Mercer Limited 1 Tower Place Wes( Tower Place, London, EC3R 5BU Registered Office: 200b Lambeth Road London, SE17JY mS-s¢.org Page 57