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
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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 i*w Roya Marines Cacleis solabus -
Reiniioducing s(xne Intefnatior*l 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'wellt*ing & iesiherre. course lor cadels
naiKJna1ty
ProvithrMJ practE41 eaieers sup￿1
Dev&loyiKJ èl Str4iegy Iv ¥el*cl 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￿$v￿¢r￿a IxJ¢reach cwrses 10 50 b&rners114-191
IXivL4optr)9 11)ree nvw Learri(OSea upskilliiig L()uises
Esiablisl) a LafoLJ¥S biKkJe f(Y Clxlels seek¢i)g io
txJress iiilo muiil1iT￿ seciL¥ -
FiJritr*r (knVebpi1￿ our Coniiy propci
2. VOLUNTEERS
SuppK)rling return ol lull delwy ol the Sea Cac*t
Experience
Haf1￿1￿ blended leainiw dewing any vdunieer
tralnirKJ ba¢kkyJs -
Iiiir￿lUc￿1g m019 external accredi1aiio￿ for
vol¢Mieei irainirYJ X
Oriwn9 Ilex*)￿ vc4unteering
7. ENABLERS
Commiltlw IQ Lonstructty) ol J major rwi t(Jat
slai1￿ ￿n Midl8iids
tklivoring Improvemenis to r￿1(Mi81 trainfii￿ veNe
eppxjilunititrs ¥
comp￿lIr￿j a tran¥Fxyi revw4 X
nniro developmei)i ol sh¢x)iing hubs
Lk14VWilU (M) secur¢d I1)veslrv￿1t In txiaiii
equipn*nt rf
Conrinuing to roll (yJt dwersity Inclusicn F4on8
C*vek)png 8n environmenlal siiit89y
GrowirvJ furKJr81￿ng deveknpirvj C￿n￿lnical1OnS
3. GROWTH
SupF4>rtiro unll wegenwatKJn pL8rns
Oeliv8rirMJ 1,200 wtieaeh oppwtunllles Vk? oul 'On ihe
Watei. prfyJramm
0$￿171￿ a luillv 20 new Jun￿ SeCiK)rs 8nd rgluii)INJ
lo April 2020 c￿1 mrnl*rs
D￿e[oPr￿a e siraiegy for luture ￿0W{￿ -
4. OIGITAL
Ddiverlng (￿11￿ course ptyn*ni and eXp￿￿e
systems
Rollng out ¢lJf VOIL￿teer p￿181
Deliverir)g J cas& inanL%Jen*iii 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 C8L*ts 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 wl*st
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'
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).
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 $hort-lerm and enduring benefits for them and the maritime se¢tor.
|IwJlWITl￿ll￿￿Try 1IF*YJ5b
and
lol w(Kld unrj ID
IdthD li01n￿
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Thffjofchwwovqr
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.-.11 ￿￿5￿[￿.10&￿&..I$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.
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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.
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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.
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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.
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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
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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•$lgnat•d funds
Unre8trlct8d funds
1,460
515
314
1,774
1,468
570
382
Totsl
13,189
19,224
3,883
36,297
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MSSC
NOTES TO THE ACCOUNTS (CONTINUED)
YEAR ENDED 31 MARCH 2023
17. ANALYSIS OF NET ASSETS BETWEEN FUNDS {CONTINUEDI
Intanglble
& tangiblg
fixod
assets
£'ooo
Investments
Net current
assets and
long torm
Ilabllitles
£-'ooo
2022
Total
£'ooo-
£:000
R8strlctod funds
12,957
5,192
18, 143
Endowmgnt funds
256
18,017
18,273
Dtr$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.
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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.
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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