MSSC MARINE SOCIETY & SEA CADETS MARINE SOCIETY & SEA CADETS Report & Accounts For the year ended 31 March 2024 Admiral of the Sea Cadet Corps: Her Royal Highness. The Prin￿sS Royal President: Admiral Sir Philip Jones GCB DL Charity number (England & Wales): 313013 Charity number (Scotland): SC037808 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 Overview Marine Society and Sea Cadets (MSSC) is a charity that helps launch young people for life and supports aspiring and serving seafarers in achieving Su￿ssful careers. With a clear aim to be the leading maritime charity for youth development and lifelong leaming, MSSC is committed to investing in and supporting all of our beneficiaries so they can achieve their potential whatever path they choose. Our vision for Sea Cadets: 'Every young person launched for lrfe". We seek to achieve this by: Inspiring young people to achieve their potential through challenge and nautical adventure guided by the customs and traditions of today's Royal Navy. Our vision for Marine Society: °Every current and future seafarer and maritime professional skilled for life". We seek to achieve this by: Enabling cuThent and future seafarers to realise their potential through learning and career development. We know that our work has a transformational impact on both individuals and the communities they live and work in, positively affecting their life chan￿S and benefiting their communities and society as a whole. 2023124: A Year of Choppy Waters Setting our Course Our year began with considerable excitement and optimism with the launch of our Future Ready strategy in April 2023 (see page 6). The strategy, developed with our cadets, volunteers and employees, charts a clear course for the next five years to 2028. It is about meeting the growing demand for what our charity offers young people. seafarers and maritime professionals, while equipping them for a world of increasingly rapid change. For cadets, this means providing a unique mix of non-formal education, challenge and adventure that develops Confiden￿ and resilien￿. builds teamwork and leadership skills; and instills clear values, within a safe and inclusive environment, where cadets have a real voice - all of which will ensure our young people can thrive whatever their futures. For seafarers, this means providing the practical leaming opportunities, online support and expert mentoring which will allow them to upskill and progress throughout their careers - with the versatility and adaptability to seize new opportunities and make full use their talents. The first year of our Future Ready Strategy saw us make good progress in giving our charity platform for sustainable growth - building on the Suc￿sS of our two-year Regeneration Strategy, which delivered a full-return to in-person activity following the pandemic, while also transforming our digital platforms. Refining our Offer All of this, however, has occurred within a testing environment. The charity has been battling against the continued economic headwinds facing all organisations as a result of recent persistently high inflation. We rely on the Royal Navy for around half the funding of Sea Cadets via a grant-in-aid. The MOD and RN were not immune from the finanGial limitations, leading to an unexpected re-set of our grant-in-aid in mid-April 2023. This compounded our financial burden, requiring immediate temporary restrictions on delivery for the financial year 2023124. Page 2 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 With continued inflation, and following settlement of our grant-in-aid for 2024125, we faced a A £1.94m gap in our budget for 2024125 requiring us to take decisive action. At the same time our volunteers have been facing similar headwinds - straining their capacity to deliver for Sea Cadets and to meet the insatiable demands for activity from our cadets, further enthused post pandemic by all that Sea Cadets has to offer. In response to this mix of challenges, in November 2023 we launched 'Refining our Offer, to reduce the growing demands on our volunteers, cut our organisational and delivery costs, increase fundraising and income generation, implement efficiencies in the way we deliver the Sea Cadets Experience (page 14) and provide essential resources for safeguarding, safety and offshore activities. By listening to the positive solutions identified during our comprehensive organisation-wide consultation, we have been able to refine our offer for young people - slowing the pace of delivery slightly to redu￿ the workload of our amazing volunteers without compromising the consistency or quality of the Sea Cadets Experience. This has helped us arrive at an affordable budget for 2024125 - closing the funding gap while ensuring the changes are proportionate, balanced and support our continued progress towards our long-term aims. The difficult choices we agreed on together also ne￿ssItated a strategic restructuring of our central teams, with a reduction in 10.45 full time equivalent roles resulting in eight redundancies and impacting on a further 40 roles across all departments. Throughout this period of uncertainty, our teams remained constructive and professional while offering support to colleagues. Most importantly. our collective determination to deliver the best possible experience for our beneficiaries remains undimmed - and we pledge to give our employees and volunteers all the support they need to thrive in that process. Indeed, by lightening the load on our people, we will be able to maintain a laser focus on realising our Future Ready Strategy- supported by ambitious plans to drive increased income, with an aggressive fundraising target of £3.1m for 2024125 (up from £2.2m in 23124). We hope to achieve this target by prioritising ongoing work to increase MSSC subscriptions and develop corporate sponsorship opportunities, along with the launch of two new appeals - to finance a refit of our tall ship TS Royalist and two new adventure ￿ntres. Prioritising Safer Activity Safeguarding, safety and inclusion remain at the forefront of our strategic objectives. To this end, during the year we concluded an external independent review of our safeguarding procedures and processes, undertaken by Bamardo's. This regular comprehensive audit confirmed our strong culture of safeguarding and our continued progress, as well as our appetite for ongoing improvement. To ensure continued progress, we have agreed a development plan, with regular monitoring by our Senior Management Team and Trustees. On safety, we closely followed the Coronerfs Inquest into the tragic 2018 death of a 16-year-old Explorer Scout during a hill walking activity- to ensure that Sea Cadets could make use of any relevant learnings to improve our own delivery of activities. Having reviewed the Coronerfs latest report, published in early 2024, we assessed our procedures in light of the issues raised and launched a Safety Activity initiative for Sea Cadets. Building on existing work. this included developing a new safety checklist for use in planning activities. ensuring all our volunteers refreshed their knowledge of our existing systems and Page 3 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 processes as well as ongoing work to strengthen our risk assessment processes and refresh our mandatory safety training. On inclusion, we made significant progress in the year with delivery in line with our equity, diversity and inclusion action plan in response to 52 recommendations in our June 2022 EDI Review. Fully embedded within our Future Ready Strategy our delivery in reported is covered in more detail on page 6. Working with the Royal Navy A key theme of our Future Ready Strategy is to further reflect today's Royal Navy within the Sea Cadet Experience offered to our young people. During the year we deliVe￿d to our cadets.. 14 naval experien￿ weeks at HMS Raleigh 15 amphibious experiences delivered for Royal Marines Cadets 873 cadets engaged in careets fairslwebinars 35D/o had the opportunity to meet serving members of the RN We continued to drive RN footprint across the UK, raising RN profile and awareness, including: 42,200 cadet days spent representing the RN at community events and parades 569m people reached through our press coverage We also delivered against our perf0rrnan￿ indicators with the RN set out in our Memorandum of Understanding. ex￿edIng both of the measured KPIS: RN Career Awareness Briefings to Volunteers." 682 delivered (against 240 stretch target) School engagement visits." 250 delivered (against 36 stretch target) The value and relevan￿ of the RN to cadets was clearly demonstrated in our 2023124 Impact Report (page 13). Cadets scored their trust of the RN at 7.7 (out of 10). on a par with sea cadet volunteers (7.9) and well above teachers (6.2). Alongside this work we have sought to play our part in an Independent Review of Cadets commissioned by the Second Sea Lord to guide the way ahead for the next 25 years. We have seen the Review as a great opportunity to demonstrate and build on the value of Sea Cadets to the Royal Navy, achieving real impact across the UK. Indeed, as the most cost- effective Community Cadet Force, we stand ready to work ever more closely with the RN to further support the further development of the RN Cadet Forces over the coming years. Ofsted 'Good' In March 2024, The Marine Society College of the Sea was subject to a three day Ofsted inspection. This was a comprehensive review of the work of Marine Society, ultimately judging the College overall effectiveness as 'Good' with an over￿helMlngIY positive report. It was particularly pleasing that the report specifically noted the College's strong advocacy for and Page 4 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 engagement with the maritime sector. As a result, the College was assessed as making a 'strong contribution to meeting skill needs, across the sector. Looking FO￿rd We have much to do to continue to grow Marine Society, to play our part in the implementation of the RN Review of Cadet Forces, to continue to drive staying safe and to respond to the youth and maritime political agendas as they develop post the General Election. Inspired by the life-changing impact we continue to have on cadets and seafarers (pages 6, 13 and 15) together with our impressive delivery in 2023124 (page 8), we are guided by our Future Ready strategy (page 6) and exciting plans for 2024125 (page 18). As a result our whole charity is driving through the recent choppy waters. confident to further increase our impact. 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 to the organisation. and redouble our commitment to doing our best. MSSC values Sea Cadet values Respect: We are inclusive. considerate and professional. To indugve. aFv￿late ottws a-Kl cc¥ksxJerate of all. Loyalty: We put our beneficiaries first and pull together to achieve our shared goals. To tE fathfijl to ttNJse wtrK) value a Self-discipline: We are focused and structured in our work to achiove the best possible outcomes. Self-dlsclpllne: To Ik) my best arxl (*) what I Ir1￿1. Commftment: To t*i that I say I wl. Commitment: We are commitled to the charity's goals and to work creatively to find solutions. Hol￿ & Integrity: To tell tnjth ￿K1 Honesty & Integrity: We are open. honest and treat everyone fairly. Courage: To do whai I krK)w is right. Courage: We do what we know is right and support others to do the same. Page 5 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 ENGAGING MARGINALISED YOUNG PEOPLE AND EMBRACING DIVERSITY We continue to aspire to make Sea Cadets even more accessible to the disadvantaged young people who could benefit most from our activities. Our suniey in 2023124 showed: 55'k of Sea Cadets units are located in areas of relative economic disadvantage (compared to 33 % of other yOLrth groups) 440/0 of cadets live in 'left behind areas. (20% of the general population) 80/0 of cadets are looked after children (1Yo national average) UP from 6 % on prior year 8 % of cadets are young carers (60A national average) UP from 7 % 6 % of cadets identify as autistic (2Yo national average) UP from 50 50/0 of cadets identify as ADHD (5°/o national average) 11.3 % of cadets from non-white ethnic minority (16.2Yo national average) UP from 10.7 % 4.7 % of cadets identify as mixed-race (2.9 % of the general population) 17.3 % of 12+ cadets identify as non-heterosexual (3.3°h general population) Throughout August 2023, our On The Water outreach programme gave a first taste of boating and water sports to 779 hard-to-reach children in Birmingham and London. Notably, we were able to increase engagement among several categories of disadvantage" 760/0 of participants were from areas of relative economic disadvantage - UP from 67 % 290/0 of those taking part receiving free school meals - UP from 140/0 10 /0 of the young people we welcomed had disabilities- UP from 7 % LAUNCHING OUR FUTURE READY STRATEGY Over 100 of MSSC'S most influential supporters came together to hear senior cadets and young volunteers launch the charity's Future Ready Strategic Plan 2023 - 2028 at the House of Lords in April 2023. Having co-designed the strategy. the cadets delivered their own speeches explaining how the Future Ready plan builds on their personal exPerien￿S and reflects their ambitions for the organisation - bringing the strategy to life and demonstrating how our charity is succeeding in developing young people. The Future Ready Strategy is designed to create the conditions where: Developing an urgency for growth and delivering on it Fully embracing flexible volunteering Becoming fully inclusive Creating a youth centred approach Driving cadet voice Equipping seafarers with the essential skills they need Ensuring a positive and supportive employee experien Page 6 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 We will achieve this by focusing on the following key themes: Enhancing Our Offer to cadets Having listened to cadets, views, the Future Ready Strategy aims to.. expand our range of training and activities. ensure the Sea Cadets Experien￿ reflects today's Royal Navy. develop support for mental health and emotional wellbeing. empower young people to shape their own experience. Enhancing Our Offer to seafarers Responding to the priorities of the UK'S Ma17time 2050 strategy, Future Ready aims to.. increase apprentI￿ShIp opportunities. broaden our maritime curriculum. promote and support maritime careers. Equipping Our People to support our beneficiaries To ensure our volunteers and employees have the skills and support they need to thrive, Futu Ready aims to." implement leadership and management training. deliver the skills to help volunteers provide yOLrth-centred activities. explore opportunities for flexible volunteering. Embracing Inclusion throughout MSSC Guided by the recommendations of our independent Equity, Diversity & Inclusion audit, Future Ready aims to.. update our policies to promote EDI and challenge inappropriate behaviour. provide EDI training and support for volunteers and employees. ensure that we reflect the communities we serve. Creating the conditions for Growth To address the growing demand for our services, and make our offer more accessible to minonty groups, Future Ready aims to." open new sections and units, including in new locations. develop targeted outreach for under-represented communities. support an additional 2,500 cadets by 2028 (500 per year). Strengthening our underpinning Enablers To achieve all the impact outlined above. Future Ready aims to deliver the investment that will." improve our environmental approach and redu￿ our carbon footprint. provide the new facilities and equipment needed to support cadet training. drive our ongoing digital transfonnation. We are clear that safety and safeguarding are paramount to everything we do and therefore foremost in all of the objectives in the strategy. Page 7 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 WHAT WE ACHIEVED IN 2023124 We set out 10 key outcomes to guide delivery in the first year of our new strategy, backed by detailed plans to achieve them. We note our progress against each below: OUR OFFER forsea cadets 1. Ensure more engaging training and activities We delivered: 19 new online leaming modules to the Sea Cadets Portal Added positive mental health and emotional wellbeing sessions Progressed work to create unit air rifle and drill hubs. plus regional shooting hubs 2. Ensure more RN experiences." We delivered: 14 naval experience weeks at HMS Raleigh 15 specialist waterborne exPerien￿S delivered for Royal Marines Cadets 873 cadets engaged in careers fairslwebinars 35 % had the opportunity to meet serving members of the RN. 3. Ensure more Cadet Voice." We delivered: More units holding regular cadet forums Cadets interviewing key appointments Launched search for 2 cadet trustee committee members 5 nationallarea projects delivered using cadet co-production approaches. OUR OFFER for seafarers and maritime professionals 4. More apprenticeships & support for seafarers." We delivered: Grade 2 'Good' Ofsted inspection outcome Increased apprenticeship standards on offer to 7 and enrolled 7 new apprentices 75 % of apprentI￿shIpS (by funding value) delivered directly by Marine Society. 94 Slater scholarships and bursaries awarded to seafarers 84 Coming Ashore registrations with 9 seafarers securing jobs onshore 15 furthering careers in offshore energy sector via our Green Skills Bursaries £174k income from maritime book sales and 5 digital port libraries funded by MNWB Learn@Sea and Learn@Shore apps further developed and sales up 14 % OUR PEOPLE 5. Further develop volunteer training." We delivered: Automated online booking A new Basic Leadership course added in all districts. The identification of a national framework for volunteer mentoring Fully embedded 'Working wtth young people, New 'Leading a Sea Cadet unit. course Auto suspension without disclosure implemented Residential training procedures extensively updated. Page 8 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 6. Promoted development opportunities for our employees." We delivered: Management training provided EDI training for emploY￿S completed 8 employee policies updated Leadership development courses implemented INCLUSION & GRowfH 7. Engage more young people." We delivered: 24 SeniorlRMC sections via DCMS waiting list project 14 new Junior sections opened. Cadet numbers up by 511 (with volunteers up 5 % > 'On The Waterf outreach delivered engaging 779 marginalised young people. 8. Become more inclusive." We delivered: 6 policies revised to promote an inclusive culture. EDI training to all MSSC employees and trustees. Online EDI training course developed for volunteers An accessibilityfinclusivity audit of MSSC facilities ENABLERS 9. Impmve our envimnmental appmach.- We delivered: New environmental newsletter Tools to measure unit and MSSC facility carbon footprints. Sea Hive habitats in two pilot locations. 10. Improve our systems and facilities to support delivery We delivered: Revised Unit assuran￿ and support prO￿sS New complaints pro￿dure 10 point safety checklist launched and new H&S course in development Middlehill adventure training hub opened in Sussex Midlands Boat Station project progressed close to completion. Updated pocket safeguarding guides issued to all cadets and volunteers. Other major milestones in 2023124: Brentwood Unit's Petty Officer (SCC) and former cadet Apple-Jane Hayward BEM represented Sea Cadets at the Coronation of King Charles111 inside Westminster Abbey on 6 May 2023. In Padiament Square, Able Cadet Sara (Southampton Unit) and Cadet Corporal James (Guildford Detachment) bore the national Standards of Sea Cadets and Royal Marines Cadets, while thity of our senior cadets were stationed along the procession at Admiralty Arch. We were delighted to re￿1ve The King's warmest wishes in recognition of both our Page 9 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 cadets, efforts on the day and in the community celebrations assisted by units around the UK. The Coronation Bank Holiday of 8 May saw Sea Cadets set a new Guinness World Record for the world's biggest ever piping lesson. Over 300 cadets and volunteers gathered at Greenwich to help launch The Big Help Out initiative by playing the 'Call The Hands, to urge the nation to try volunteering. Many of our units eMbra￿d The Big Help Out launch by organising unit open days or clean-ups to engage potential volunteers, with further events continuing through the summer. Sea Cadets played a leading role in Liverpool's commemorations of the 80th anniversary of the Battle of the Atlantic in late May. Ellesmere Port Unit's band played for veterans and dignitaries, while cadets from across the North West Area perfomied a variety of activity displays for thousands of visitors. Senior cadets then took part in the closing Drumhead Service, before over 150 sea cadets and royal marines cadets joined the 'March for the Medals, parade through the city. A record-breaking year for the Duke of Edinburgh's Award at Sea Cadets saw 1,330 cadets and young volunteers enrol with 464 re￿Iving awards- including 58 Golds. beating the Sea Cadets record of 45 achieved in 2018119. 24 cadets took advantage of the opportunity (available for the first time in 23124) to choose an offshore voyage on one of our yachts as their Gold or Silver expedition module. 12 cadets onboard TS Jack Petchey were thrilled to take part in Guemsey's 78th Liberation Day Parade, with another 12 from TS John Jerwood honoured to play a leading role in the official 79th anniversary D-Day commemorations at Pegasus Bridge in Bénouville. For the first time, all ten of our keel boats took part in the RS21 National Championships at Lymington in August, allowing 30 cadets to experien￿ top-level offshore racing thanks to the support of 18 volunteers and employees. Our Royal Docks Boat station hosted a memorable National Combined Regatta in early- September, with nearly 500 young people competing. Maryport & Solway Unit epitomised the determination to be part of the event" overcoming train strikes to make it to the Royal Victoria Dock from Cumbria in time to successfully defend their boat handling title. The unit was subsequently honoured to be one of only 29 youth groups in the UK to re￿1ve an inaugural King's Award for Voluntary Service- the highest honour a voluntary group can receive. Eight sea cadets joined CEO Martin Coles CBE to deliver interactive workshop sessions at October's Conservative and Labour Party Conferences in Manchester and Liverpool. Cadets explained how our programme of non-formal education and adventurous activities are preparing young people for a changing world, impressing influential decision-makers including Business & Trade Minister Nigel Huddlestone MP. Two of our First Sea Lord's Cadets rep￿sented the UK in the G20 international quiz hosted by the Indian Navy in New Delhi in November. Petty OffI￿r Cadets Maisie {Fishguard Unit) and Joseph (Camberley Unit) were competing against students and cadets from the world's largest 20 economies and nine guest countries, and narrowly missed out on a Pla￿ in the final. The trip also helped to raise the global profile of Sea Cadets, with the cadets meeting India's Vice President. Jagdeep Dankhar, and Chief of the Indian Naval Staff, Admiral Kumar. Page 10 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 Our largest ever Cadet Conference in February saw almost 300 cadets come together to shape the future of their organisation. Workshops tackled topics including the science behind water quality - the subject of a new Sea Cadets project in partnership with the University of Birmingham. Marine Society's Otsted inspection saw them awarded a grade 2 'Good' across all judgements, and an additional grade of making a 'strong contribution to skills,, with the report saying. Marine Society is a strong advocate for the mantime sector. Leaders and managers make a valuable and vital contribution to meeting the skills needs of the niche industries within [and] involve major influential stakeholders from sector bodies and employers to design and implement the cumculum. These actions have a direct, positive impact on apprentices." This was a particularly impressive achievement- given that Marine Society's apprentI￿ShIp delivery is relatively new- and gives them a strong platform to promote their quality to employers and other stakeholders. Marine Society's first Outdoor Activity Instructor apprentice, passed their end-point assessment and will remain as a fully qualified full-time instructor at Nene Park Outdoor Leisure Park- a great result for Marine Society's new partnership with the Sea Cadets Inshore Boating Team. Further suc￿Ssful collaboration came when the Sea Cadets Offshore Team hosted Marina & Boatyard apprentices for Marine Society's first ever residential training voyage - developing boat handling, navigation, anchoring and mooring skills under expert tuition on TS John Jerwood. During the year our communications team achieved significant profile for the charity through strong media coverage" A Junior Sea Cadets marketing campaign delivered (including two short films) to assist with cadet and volunteer recruitment. A promotional short film created to showcase our Offshore Fleet. A special episode of Blue Peter broadcast in April 2023 to promote our offshore activities to thousands of potential recruits. Positive national and local press reports reached 2,775. Circulation of press coverage reached 569m people. Sea Cadets website attracted 139,364 new users. Social media followers numbered over 55,000. Page11 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 SEA CADETS THEORY OF CHANGE Our theory of change illustrates how our inteNentions build to deliver immediate and enduring positive impacts for young people. bla r4xlY#wyry tAvktai thg slWI ¢)t rx>tent44 hfo SK*J5 ILW ful￿reS JtiJfJ [r<￿.41￿.-. C).. IcdJi' Crjr..n￿1 fi-...i35 tiry'-'-: o? Gr4Y ofch SEA CADETS Page 12 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 OUR IMPACT: How Sea Cadets changes young people Based on 2,324 responses to our 2023124 Impact Report survey of cadets ENHANCING LIFE SKILLS, CONFIDENCE AND WELLBEING Sea Cadets has improved.. My ability to work with others in a team - 770/0 of cadets surveyed agreed How well I communicate with others 810 My ability to plan for the future 63° My resilien￿ in new situations 77°A My physical health 75° Sea Cadets.. Makes me feel empowered 730 Has made me resilient and prepared for tough times 61 /0 Is a supportive environment 88% Helps me to stop getting in trouble at school. or with the police 480/0 ACHIEVING PERSONAL GRowfH THROUGH THE SEA CADETS VALUES Respect Sea Cadets has made me better at listening to the views of others 71 % Sea Cadets has made me more likely to help other people 800/ Loyalty I feel connected to Sea Cadets 830 Sea Cadets has increased my involvement with my local community 650/. Self4iscipline Sea Cadets has increased my willingness to work hard 77Y Sea Cadets helps me to do better at school or in other education 58° Commitment Sea Cadets has increased my motivation to take part in things 83° Sea Cadets has improved my ability to make decisions and see them through 69 % Honesty & integrity Sea Cadets has made me feel that other people can count on me 70 / Sea Cadets has helped me to tell the truth, even when it is hard 580 Courage Sea Cadets has helped me to stand up for things I believe are right 671AI Sea Cadets has redU￿d my involvement in risky or anti-social behaviour 430/0 Page 13 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 THE SEA CADETS EXPERIENCE Sea Cadets 12-18yrs Roy•l Marines Cadets 13-18yrs 4-6 w•rv J-5 y•4rs Ir4r-fftXI Sea Cadets 'oalues" are k':oven inio our tr3ining Atjv A¢v SEA CADETS Page 14 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 OUR IMPACT: what the Sea Cadets Experience delivered for young people in 2023124 Overall statistics on activities delivered in 2023124: Total boating hours.. 429,769 Boating hours per cadet.. 31.3 Cadets experiencing a week long voyage via our offshore fleet: 1,381 Total beyond unit training days.. 56,925 (4.1 per cadet) Total qualifications awarded: 46,304 Qualifications per cadet: 3.4 BTEC vocational qualifications: 1,030 Duke of Edinburgh's Awards completed: 464- including a record 58 Golds Cadet feedback on the Sea Cadets Experience [from the 2023124 Impact Report survey] I have taken part in lots of different activities through Sea Cadets 850/• I find Sea Cadets training engaging 86'A I can get useful qualifications from Sea Cadets 92% 'My time as a cadet wouldn't have been the same if it wasn't for my unit supporting me all the way through. Some of my biggest achievements in the cadets have to be my Gold Duke of Edinburgh award,. gaining my RYA Day Skipper qualification thanks to the Offshore Team. and reaching the rank of Petty OffI￿r Cadet. Having attended multiple offshore voyages- with my favourite being the Tall Ships Race 2023 voyage on TS Royalist - I believe that the Sea Cadets have not only transformed my life, but set me up ready for my future career of working at sea." Cadet Tom, 17, North West Area .1 joined as a cadet when I was 10 and I really love my unit. Sea Cadets gives you so many opportunities to try out new things and gain skills and qualifications. I've been on offshore voyages, done lots of courses from windsurfing to catering, and I'm working towards becoming a paddle instructor. My dream is to have a career in music. I play the trumpet in the Sea Cadets Massed Band and take part in big national parades, such as Trafalgar Day. I was born with visual impairment, but everyone at Sea Cadets has been really supportive of me and made sure that I'm able to fully participate in all the activities it offers. Being part of Sea Cadets has definitely changed my life and helped me with everything from self-confiden to leadership skills. Cadet Eleanor, 14, Southern Area Page 15 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 OUR THEORY OF CHANGE FOR MARINE SOCIETY The following diagram shows how we engage and support current and future seafarers and maritime professionals, delivering immediate impact and enduring benefits for them and the maritime sector. and fflariiioie tliofw¥)na n*'J Ihe irè,nw aiKJ deK'elotKrEnE OFtiKupi; to re&4lise ri1￿[ pxeiiiK Raan7 Cl) JftIL'Eni dr4erge skJIl￿ w(Mkfvce for a diar¥JiThJ ivorlj and to m*1 n9￿$ Sei rAIt In aTitiin& 2050 ey ￿r[r¥r$ Fr£￿ S* Thm of ChgryB ovwleaf Sea Lad&tq hew li￿rease trie UT i¥¢ni i* 10 Ili AwarEneS5,.8AY￿ ¢)f rwi'.Ln* a wthcar* fc* ￿[611[￿ IdÉii:11y sJp*rt Lnderlep.&86ft￿ gw In tr fTp8rrtiw¢% sectov Sserv P(ovi5￿ of t[9￿109 pa=kÈgp& Prwsti) ol upwi1 8f1..iY￿ Ira￿ Pastoral volunreer5 Cadets To Sea CaJetS orc￿9 MARINE SOCIETY Page 16 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 OUR IMPACT: how Marine Society helps seafarers change their lives Changing lives- in numbers: 9 Coming Ashore mentees securing jobs onsho 15 seafarers furthering careers in the offshore energy with support from our Green Skills Bursary 72 ratings achieved their first Certificates of Competency supported by the Slater Fund 4 crew libraries supplied to support seafarer learning and wellbeing 204 hours of one-to-one mentoring delivered to seafarers Seafarer feedback on Marine Society support "Leaving the familiar and comfortable world of seafaring was a daunting prospect. Fortunately, I found valuable support in the Marine Society's 'Coming Ashore, programme. This initiative provided me with the specific skills and knowledge necessary for the transition, and my mentors, experienced ex-merchant navy professionals, guided me through this transformation. Moreover, my first shore placement was secured through the Marine Society, and further solidified my commitment to a career in maritime law.. Nazmus Sakib, 'Sea to Shore, placement 'The service I have received from The Marine Society has been outstanding. The support was especially appreciated when I was completing multiple courses in a short period of time. The learning process has broadened my knowledge and I have a much greater understanding of all aspects of managing a Workboat and its crew. This will undoubtedly make me a safer and more capable seafarer going fonvard.. Edward Clarke, Slater Fund recipient "After working at sea for 12 years, I was increasingly seeking a better wormife balan￿, which was a big motivator in my decision to move ashore. Marine Society had already supported me throughout my maritime career with scholarships. additional leaming opportunities and awards so I was thrilled to leam they had a 'Coming Ashore, mentorship programme . which was instrumental in making my transition ashore a smooth one." Kristina Hogg, Coming Ashore mentee '[Marine Society] trainers work effectively with employers to make sure that apprentI￿S have good opportunities at work to practice and develop what they leam. Consequently, apprentices develop skills early in their programrne to perfonn a wide range of tasks . colleagues to their employer.. [and] become valued Otsted inspection. March 2024 Page 17 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 OUR FUTURE READY PLAN FOR 2024125 Building on the achievements of the past year, the strategic goals we've identified for 2024125 will help us overcome the economic challenges we face and improve what we offer our beneficiaries. Our top ten goals (below) will also help us to create the conditions necessary to drive the core principles of our Future Ready Strategy, in a year which will be a crucial step on the journey to making our organisation fully inclusive. ready for growth. and ￿ntred around the needs of our beneficiaries, volunteers and employees. Our top10 goals for 2024/25 OUR OFFER OUR PEOPLE O Refined Sea Cadets Experience O Voluntears and employees fully implemented: further supponed: Vdunieers emp)wered ro tslwer AdchEThiat safery. leaJersfNp & E¢wiw. d￿tr￿t Iw81 Irair aThY I￿lus#￿ (EDI) tranrKJ NavtgaDfYL & ppTh3 DK)tal vdunie6Y ijkn¥iJng18L￿th￿j In ihe c￿1@1 IraniYJ arKI wnF4(tyee M￿0v&￿ proaranvng NatKfial frwrw¢yk V￿n[eer F￿X￿e v￿nIe￿￿ rycmyessaj INCLUSION & GROWTH O Providing Soa Cadets to even more young people: Prcoranynes cknlir wdrare iranrNJ fu of Increased cadat voica: 50%+ of urns hddirrfJ rwr c&Yei forurr O Cadet Royal Navy ongagement incroased: Ac£esS/i￿lty fcff urNts 20% of offwed io deve meei Royal N - Two Srwdlsatt￿E1￿0￿￿l)eS updai&J io refKrE E(xJty's Royal Navy O Maritim• career opportunities incréaséd for cadets: O Our approach to EDI progressed: ENABLERS O Digital and Facilities imwovement& MMJaMts B)3[ star￿ ¢Wai￿1 Two aJventtre trai)rKJ cenires ddwered Fc¥Jr reg￿￿￿ 75 dnu hubs aTrJ 72 ar rifie cthires defv￿£￿I 0 £3m fundraising delivered: 10 L•J￿h of'Fnetits of MSSC FXC*Jra) At thst ¢2rews fars delwerwj O Marine Society College offer funher developed: Irueased marffirre cpahficatFC*lS arpr4}D￿ ￿rcArrwts - Gr￿n i￿lUstry F42Le1r￿nts & Cm'ro apF6* Ash¢ye prcgrarn Page 18 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 MSSC'S LAMBETH ROAD, LONDON PREMISES The former MSSC building and land at 202 Lambeth Road remains the propety of the charity and is currently being marketed for disposal. CHARITY OBJECTS The objects of the Marine Society & Sea Cadets (MSSC), a charity registered in England and Wales 313013 and in Scotland SC037808, are set out in its 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 achieving their physical, intellectual and social potential as individuals and as responsible citizens by the provision of education and leisure time activities using a nautical theme to advance the education of seafrdrers in such ways as the Council shall detemiine but including (at the discretion of the Council) the following: the provision in ships and on shore of a comprehensive library Servi￿ in any media for the use of seafarers the assistan￿ of persons preparing for or entering upon a maritime career by the provision of training, the payment of fees, maintenance and other expenses and the making of loans the award to seafarers of scholarships, bursaries and maintenance allowances tenable at nautical or other schools or training establishments the making of grants or loans to nautical or other schools or training establishments which are charities or to other organisations established for charitable purposes only which provide facilities for and encourage young persons to become seafarers the advan￿ment of the education of the public in maritime matters the promotion of scientific or other research of particular benefft to seafarers and the publication of the useful results of such research the provision in the interests of the social welfare of seafarers of facilities for recreation and other leisure-time occupation, being facilities which will improve their conditions of life and of which they have need by reason of their social and economic circumstances the relief of financial hardship among seafarers and their dependants 'Seafarers' 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 are serving in the navtes, merchant navies or fishing fteets of such other countries as the Council from time to time determines Members of the Sea Cadet Corps,. and any other young persons considering or interested in a maritime career "Sea Cadet Corps. (SCC) means properly constituted maritime cadet units that conform to the policies of Sea Cadet Regulations established by the charity and that are formally affiliated to it. Page 19 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 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 worfd, the 350- ton Sloop Beaty, and went on to provide sea training all the way up to the Second Wortd War. It was estimated that over 110.000 men and boys were trained and equipped by the Society over this period. The Sea Cadets movement dates back to 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 Lord Nuffield gave £50,000 to fund the re-launch and expansion of the Corps and five years later the Admiralty started to pay for uniforms, equipment, travel and training. In 1976 the Navy League was renamed the Sea Cadet Association. In 1963 the Girls, Naval Training Corps (GNTC). which had been formed in 1942 with objectives similar to those of the Sea Cadet Corps, became a partner organisation of the Sea Cadets, often sharing facilities. In 1980, the GNTC merged with the Sea Cadets, firstly as the Girls Nautical Training Contingent, 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 (SCA) with the merged organisation retaining the constitution of The Marine Society. The SCA (registered charity number 306141 & company number 404951) is now a subsidiary of MSSC. PRINCIPAL ACTIVITIES The activities broadly relate to those of promoting Sea Cadets activty and helping seafarers realise their ambitions. The charity supports the maritime industry through the provision of Marine Society College activities, by promoting career opportunities in the maritime sector, upskilling seafarers using new technologies, whilst supporting athers to transition ashore into maritim&related roles. As an approved Govemment-funded training provider and Ofsted-rating 'Good', Marine Society will build on its global reputation for supporting seafarers offering advice and guidance, scholarships. bursanes, apprentI￿ships, a growing range of post-16 to graduate courses as well as delivery of crew libraries and specialist book sales. The charity acts as the franchisor for Sea Cadets units- local groups are constituted as separately registered charities. The charity sets Sea Cadets regulations, issues guidance and performs inspections to ensure that the highest of standards are maintained. It provides support in many other ways including provision of unifomis, equipment, onshore and offshore training and related travel, business and unit support and Disclosure and Barring Service (DBS) checks. The charity does not have overall control over the day-to- day operation of the individual units. Sea Cadets units operate across the United ￿"ngdorn. with a total as at 01 April 2024 of 14,243 cadets (11,657 in England, 1,245 in Scotland, 737 in Iwlales, 352 in Northem Ireland and 252 overseas). There are 311 estsblished units in England, 35 in Scotland, 20 in Wales and 12 in Northern Ireland, with a further in Bermuda and one each in Jersey, Guemsey, Isle of Man and Malta. Within these units there are 977 sections - 795 England, 89 Scoland, 52 Wales. 27 Northern Ireland, 2 Bemiuda, 7 Channel Islands (Jersey and Guernsey), 2 Isle of Man and 3 Malta. The charity maintains six area offices, five based in England and one in Scotland, three national training centres, Iwo in England and one in Scotland, eight boating stations, seven in England and one in Scotland, and an offshore fleet of five vessels, based in England. Page 20 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 VOLUNTEERS The charity relies extensively on volunteers to support the delivery of its training and other activities to Sea Cadets, and to serve as unit management team members (trustees) of Sea Cadets units. As at 01 April 2024 there were 4,761 adult instructional volunteers, 1,464 unit management team members and 2,678 other volunteers. In total 8,903 volunteers 7,381 in England, 750 in Scotland. 454 in Wales, 193 in Northern Ireland and 125 overseas). We are extremely grateful for the generosity of time. huge commitment and can-do attitude of our volunteers in making the Sea Cadets the success that the organisation is. KEY RISKS AND UNCERTAINTIES The Council is responsible for management of the risks and uncertainties faced by the charity. assisted by senior staff. The Council undertook an annual review of the organisation's risk management process through the Safety, Safeguarding, Inclusion and Risk Committee in July 2023, and together with the Policy Development and Nominations Committee and the Financial Investments Audit 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, together with its indicators and mitigating factors in pla￿. and its target and current mitigated scores based upon an impact and likelihood matrtx. A commentary is also maintained by risk5 of actions 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 Safety, Safeguarding, Inclusion and Risk Committee which meets three times a year. The Council considers the key rtsks facing the charity to fall wrthin 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 per￿ptIOn and reputation Stakeholder management, and in particular, key stakeholder support The key mitigating controls used are: Formal and periodic review by the trustees Comprehensive strategic planning, budgeting and management accounting Formal organisational and govemance structure and lines of reporting Formal written policies Hierarchical authorisation and approval levels Internal audit review of targeted areas External audit The Council is satisfied 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. Page 21 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 FINANCIAL REVIEW Income Total income amounted to £18,842K (2023: £16,503K), an increase of 14 % over the previous year. Donations, legacies and other income are £2,672K up on last year. This increase in primarily from £2,1 Ook received for Midlands Boat Station and £591 k from DCMS for the Waiting List Project which aims to open 58 new Sea Cadet or Royal Marines Cadet sections. particularly in areas of deprivation across England. Each new Section will provide 25 new cadet pla￿S creating a total of 1,450 places. The project started in November 2022 and runs through to March 2025. We continue to remain sin￿relY grateful for the continued support provided by the MOD in helping finance the Sea Cadets through the grant in aid. Expenditure Total expenditure was £18.620K (2023= £18. 780K). The cost of safeguarding and supporting Sea Cadets activty and infrastructure increased by £498K {5 % ) - the majority in delivering the DCMS project (see above). Sea Cadets training decreased by £689K (13 % ) - this reflects a normalising of activty following the pandemic and training review. Marine Society costs decreased by (£236k {250/0) mainly due to reductions in professional fees for ESFA. Net income and other movements Overall, net income before investment gains was up by £2.499K to £222K mainly due to the significant increase in restricted grant income. The £222k is broken down to restricted funds £862K and Unrestricted funds (£639K). It has been the policy of the charity Sin￿ 2012113 to set aside long-term gains from its expendable endowment for current expenditure. The drawdown amounted to £622K (2023: £401K) based on an up to 4.0 /0 agreed return set by the Trustees following advi￿ from the investment managers. Investment portfolio gain in the year were £847K. Balance sheet The net book value of tangible and intangible assets increased by £2,156k mainly due to the expenditure on the Midlands boat station - offset by the depreciation charge. The value of investments portfolio increased by £997k. Cash at bank has decreased by (£2,816K) mainly due to investment in fixed assets. Total debtors have increased by £742K. mainly due to Trade debtors which have increased by £321 k and Accrued income £418k. Total creditors have decreased by (£3K) due to an increase in Intercompany and Trade Creditors, offset by a reduction in Grants payable and Accwals. Page 22 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 SAFEGUARDING POLICY MSSC Safeguarding Policy Statement 'At Marine Society and Sea Cadets (MSSC) we recognise our responsibilities to ensure that in line with our duty of care we safeguard and protect the children & young people and adults at risk with whom we work, doing all we can to promote their safety, health, well- being and happiness. We continually strive to be a respected and trusted organisation where everyone feels safe to partiGipate in all our activities and our cadets and adults understand their right to be-protected from all fonns of hann.. 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 wrthout fear of discrimination or exclusion. All members of the MSSC will be valued and their rights to opportunty, protection and safety fully respected. This is underpinned by the charity's values and other supporting policies and procedures including our Equity, Diversity and Inclusion policies. 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 leaming all their lives. This is reflected in the low levels of negative feedback we receive, and the absen￿ to date in recent years of fonnal complaints to the charity. Complaints and negative feedback Should we re￿1ve a complaint related to fundraising. we would respond on a one-to-one basis as quickly as FX)ssible, maintaining full records. No complaints were re￿iVed in 2024 nor 2023. Contacting our supporters and supervising 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 expectations, including ensuring the charity's compliance with General Data Protection Regulation (GDPR) (EU) 20161679. MSSC staff and volunteers carry out the vast majority of the charity's fundraising activities. We did not work with any professional fundraisers and fundraising organisations in 202312024. The Trustees are aware of the need to comply with regulations from the Charities {Protection and Social Investment) Act 2011. The MSSC ensures that our approach to commercial participators, professional fundraisers and our contracts with them are in compliance with the regulations. Protecting our reputstion, money and other assets As a charity, gaining supporters. trust is incredibly important. The MSSC must demonstrate that 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. Page 23 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 FUNDRAISING STANDARDS Icont) The MSSC takes its responsibility for managing supporters, donations very seriously and applies rigorous financial controls to ensure funds are securely held and properly accounted for at all times. The MSSC strives to make the supporters, experien￿ 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 respond sensitively and appropriately to any individual whom they might consider to be in a vulnerable circumstance. The team is further supported by an in-house safeguarding department which is able to intervene when flagged. Compliance with fundraising laws and regulation Fundraising regulation goes through continuous change. Through membership of industry bodies, subscription to charity sector publications, and staff continuing professional development we ensure that our fundraising teams keep up to date with amendments to 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 2024. The charrty is a paid-up member of the Fundraising Regulator. Compliance with recognised standards Every member of our fundraising team is responsible for making sure that they are compliant with the standards laid out in the Fundraising Regulatorfs Code of Fundraising Practice. This is carefully monitored by senior management. We are satisfied that we meet all cu￿ent standards. Fundraising Performance In the year ended 31 March 2024, the MSSC raised £4,246K through various fundraising activities, with total fundraising costs amounting to £358K, resulting in a net income of £3,888K. This represents a 310 % increase compared to the previous year {£1,252K). mainly due to the DCMS funding. Fundraising Activities Our fundraising efforts included bid writing to trusts and statLrtory bodies, corporate partnerships, individual giving programmes, membership programmes as well as supporting local Sea Cadets units with their own fundraising efforts. These activities were crucial in helping us achieve our financial goals and further our mission. Governance and Oversight The Board of Trustees oversees all fundraising activities, supported by the 'Finance, Investment, Remuneration and Audit Committee. and 'Policy, Development and Nominations Committee,. This governance structure ensures that all activities are conducted ethically and in compliance with regulations. Page 24 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 INVESTMENT POLICY Cazenove took over managing the investment portfolio from Investec this year (£13.5m) We also hold a treasury portfolio of KW Investment Management (£5.6m) and hold an investment property managed directly by the charity {£1.2m) (see Note 12). The investment aims are to create SLrfficient income and capital growth to enable the Charity to cary out its purposes consistently year by year with due and proper consideration for future needs and the maintenance, and if possible, enhan￿ment of the value of the invested funds whilst they are retained. As such the current investment objective is to generate a minimum total retum in excess of UK CPI plus 40h net of fees per year over rolling five-year periods. The annual drawdown requirement is approximately 40h of the value of the Portfolio. The Assets are not permanently endowed, and the Portfolio is to be run on a total return basis with the drawdowns made up of dividend income and, when required, caprtal. The Charity is prepared to take a "medium level. of investment risk relative to the risk profile of UK charities investors in general. As such, the expectation is that the Investment Managers will not take more than 80 % of equity market risk. at any one time. The Incumbent Investment Manager (Cazenove Capital) has discretion to shift between asset classes as opportunities present themselves within the following ranges: Portfolio Neutral Position % 70 10 10 Asset Class Minimum Allowable °k of total Portfolio 55 Maximum Allowable /0 of total Portfolio 85 20 15 uities Bonds Pro Alternative Investments Cash 15 15 Bonds held will be of 'BBB' credit rating or better. No single investment should ex￿ed 100A of the total value of the funds under management and the total sum of all equity holdings in eX￿sS of 50A must not be equal to or ex￿ed 40 % of the fund's value at any time. Ethical considerations The Trustees would like to invest in a responsible and sustainable way and therefore expect the investment manager to take into account ESG factors when making investment decisions, as well as a carbon aware approach. Timing of returns and liquidity requirements The investment horizon is ongoing and there are currently no planned significant future capital requirements from the Portfolio. The Client will update the Investment Managers in good time rf capital drawdowns are required. Page 25 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 Performance The Investrnent Managers will be measured against UK inflation {CPI) + 4Yo and the Arc Steady Growth Charity Index. The Trustees continue to monitor investment perfornian￿ and are grateful for the assistance of the investment managers, Cazenove. Review of investment managers A tender exercise for the provision 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 suitably authorised persons within the meaning of the Financial Services and Markets Act 2000. Ruffer have been appointed to manage the funds raised from the sale of the old HQ. RESERVES POLICY Total funds at the year*nd as detailed in note 18 were £37.389K, (2023: £36,321 K). This is made upof: £16,533K (2023.. £15,671 K) restricted fvnds. These are funds that have been given to us for specific purposes. Most significantly these include Fixed Asset funds to cover depreciation of Restricted Assets, Bursaries. Annual Funds, Branch and District funds. Specific funds are for Arms and Ammunition, maintenance and replacement of Offshore fleet, On the Water and development of Midlands Boat Station and Middle Hill £18,231 K (2023: £17,384K) endowment funds. These funds were taken on as part of the merger and have been recognised as expendable endowment funds Sin￿ then. We recognise the investments income as unrestricted, this drawdown amounted to £622K (2023: £401K) based on an up to 4.0 % agreed return set by the Trustees. £1,214K (2023.'£1,774K) designated funds. These are for cadet outreach, boat station development, and future developments over the Future Ready strategy funded from the property transaction. After accounting for intangible and tangible fixed assets of £570K (2023: £570K) this leaves unrestricted funds. comprising free reserves of £842K (2023: £922K). The charity does not retain MOD grant monies as part of its reseNes. The reserves policy of the charity is a risk based approach. meaning that the resep4es reflect the risk of loss of specific income (see key risks page 21) and the risk of the most significant costs increasing. On the basis of this approach the trustees have agreed our free reserves target is £2.8 million. A breakeven budget has again been set in the current year. It is unlikely the charity will be able to meet its reserves targets and instead will have to rely on expendable endowment to act as a 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 to the level of support the charity will give to the Sea Cadet movement in the event of shortFalls in public funding. Page 26 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 GRANT MAKING POLICY Grants awarded in 2024 amounted to £1,271 K (2023." £1,316K). Individual Sea Cadets units are separate 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 either facilitate or receive approved training or qualifications. In addition, grants are provided to volunteers to allow upkeep or purchase of uniforms on promotion or for wear and tear during the year. Payments are made in accordance with published scales. STAFF REMUNERATION POLICY As a charity, it is important we achieve balan￿ in ensuring value for money, including how we pay our staff, with the need to attract, motivate and retain the right people to ensure we are able to deliver our ambitious plans and so maximise our impact on our beneficiaries. Therefore, our principles are to pay fair salaries that are consistent with our commitment to equality and diversity; that we remain competitive 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 process. Governance of Pay The Council approves the Pay and Beneffts Policy, and the Finan￿, 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 detemiining the CEO and senior management team salaries. This committee meets quarterly. Annual pay review Salaries are normally reviewed annually in Aprtl l May wrth any pay increases being paid from 1 June. We benchmark salaries to ensure that we are paying appropriately and that we broadly fall within the mid-point for similar organisations. 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 unifomi inflationary increase may be applied. This is awarded to all staff, including senior staff, with the exception of those who are within their probation period or have resigned, or those who have already re￿iVed an increase that year. Salaries had an inflationary pay increase of 40fi in June 2023 and June 2022. We also applied an additional £1,250 for all staff in January 2023 to recognise the significant pressures of the cost of living increases. PUBLIC BENEFIT The Council members continue to give due regard to the public benefit provided by the charity in relation to its charitable purposes as set out in the activities and achievements OLrtlined in this report and have given due consideration to guidance issued by the Charity Commission on this matter. The aim of Sea Cadets activities is to give young people the best possible head start in life through nautical adventure and fun. based on the customs and traditions of the Royal Navy. 'Adventure that launches young people for lrfe" Page 27 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 PUBLIC BENEFIT (cont) In order to achieve this, Sea Cadets units take young people from all backgrounds, including where possible those with disabilities and develop their skills and abilities by= Inspiring young people through regular and structured activities with a nautical theme Encouraging young people to take part in activities connected with the wider Sea Cadets movement, including inshore boating and offshore voyages. as well as events and competitions at District, Area and National levels Availability of fonnal extemally recognised educational achievements whilst taking courses to earn badges and promotions Charges are kept low in order to 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 opportunrties tailored to their individual needs. °Realising Seafarer Potentiar. We achieve this through a wide range of ServI￿S that are geared towards their personal development, education and leaming support needs. helping them realise their potential. This includes.. We achieve this through a wide range of services that are geared towards their personal development, education and learning support needs. helping them realise their potential. This includes. Promoting career opportunities into the maritime sector As an approved Government-funded training provider with Ofsted-rating 'Good', offering advice and guidance, scholarships. bursaries, apprentI￿shipS and a growing range of post- 16 to graduate courses Delivering upskilling courses to aspiring and serving seafarers around the world through use of digital learning Supporting others to transition ashore into maritime-related roles. Providing a ship's library service for seafarers at sea and specialist book sales. The Council members are thus satisfied that the charity 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 at the date of this report, together with details of the executive management and professional advisors, are shown on pages 63-64. Page 28 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 ORGANISATIONAL STRUCTURE AND GOVERNANCE (cont) The Council meets at least three times a year and is supported by members 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 temis of reference, may also include specialist c(Fopted members as well as Council members to ensure that expert opinion is available. The day-to-day management of the charity and the exercising of executive responsibility are delegated to the CEO and senior management team. Meetings of the Council are also attended by one of our current First Sea Lord Cadets. The current committees and their primary purposes are.. Finan￿, Investment, Remuneration & Audit Committee Oversees the financial affairs of MSSC, including management accounts. budgeting and the preparation of statutory accounts Formulates Investment policy and oversees the management of Investment assets Oversees and ensures the proper conduct of the intemal audit process in accordan￿ with Council requirements Oversees the remuneration, te￿nS and conditions and perf0rrnan￿ review of MSSC'S CEO and HQ senior management Oversees the appointment and remuneration of the extemal auditors and receiving reports from them Policy, Development and Nominations Committee Develops and recommends strategy and policy for the optimum use of MSSC resources in order to fulfil its objects in the medium to long term (2- 10 years) Advises Council on major strategic issues, especially those which do not fall within the remit of any other major commtttee, and for monitoring the implementation of MSSC'S strategic plan. keeping it under review, and advising Council on its revision Considers and approves guidelines for fundraising and public profile strategies Nurtures and develops relationships with extemal stakeholders (including MOD, Skills Funding Agency (SFA) and public funding bodies) in order to maximise support Sets and monitors performan￿ against established targets {KPls) Undertakes a nominations function, in liaison with MSSC Chairman, for appointment to MSSC Council and the Committees Safety, Safeguarding, Inclusion & Risk Committee Reviews the quality of ServI￿S and activities undertaken by MSSC (and SCC) to ensure that they are safe (with particular consideration to the need to protect its young people). high quality, inclusive and appropriately risk assessed Ensures the maintenance of an effective system of integrated govemance and risk management that supports the achievement of the organisation's objectives National Sea Cadets Forum (Known as National Cadet vol￿ Team) Composed of Sea Cadets. 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 forums at Distrtct level to link in to the Area Cadet forum and in turn the National Sea Cadets forum. Page 29 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 ORGANISATIONAL STRUCTURE AND GOVERNANCE (CONT) National Sea Cadets Advisory Council {NSCAC) Primarily composed of representatives and volunteers of the SCC and MSSC management team. The council supports the aims and objectives of SCC and provides advi￿ to its principal national sponsors. From 9 July 2014, the chair of NSCAC was invited to be a Trustee of MSSC for the period of offi￿. Appointmen( induction and training of Council members Council members (Trustees) are ccFopted by the board and elected by the charity's members 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 down) 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 recommendation from all interested parties. The induction process for a new Council member comprises initsal meetings with the Chairman and other members of the board. followed by meetings with the CEO and senior management team, through which the individual will be briefed 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 infomiation 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. Membership and Branches The MSSC is a membership organisation and cU￿entlY enjoys the support of some 600 members who pay an annual subscription to the Charity. MSSC has five (2023.. five) branches within the United Kingdom made up of members of the charity who reside within its locality. The annual subscriptions of those living within the catchment area of a branch are returned to the branch committee to be applied for the benefit of local Sea Cadets units and MSSC initiatives. These branches are an active and welcome force in spreading the charity's message at a local level. THE CHARITY GOVERNANCE CODE The Trustees have considered the new third edition of the Chartty Governance Code for larger charities, published in July 2017 by the charity sectorfs The Code Steering Group (the Association of Chief Executives of Voluntary Organisations. the Association of Chairs. Small Charities Coalition, the Institute of Chartered Secretaries and Administrators: The Governance Institute, the National Council for Voluntary Organisations and the Wales Council for Voluntary Action). The code is supported and endorsed by the Charity Commission in England and Wales. The code lays out principles for seven key areas of govemance together with recommended practice for each principle. organisational purpose, leadership, integrity, decision making. risk and control, board effectiveness, diversity. openness and accountability. The Trustees consider that the charity continues to comply with the principles of the code. Page 30 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 INTERNAL AUDITOR'S REPORT TO THE COUNCIL The Internal Auditor reported to the Council in July 2024 as follows: Based on the work performed during the year, it is the opinion of Intemal Audit that MSSC has an adequate and effective framework of govemance. risk management and control in place to support the organisation's objectives as laid out 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 ag￿ed actions are monitored by Intemal Audit and reported to the Finance, Investments, 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 Significan￿ to warrant specific disclosure in the Annual Governan￿ Statement. STATEMENT OF THE ACCOUNTING OFFICER The Chief Executive OffI￿r (CEO) as designated Accounting OffI￿r in accordance with the current ten year Memorandum of Understanding with the MOD dated 13 December 2018. should ensure that MSSC and any subsidiaries to it or organisations sponsored by it, operates in respect of the GIA effectively and to a high standard of probity. The MSSC should in respect of the GIA: Governance Have a governance structure which transmits. delegates, implements and enfOr￿S decisions Have trustworthy internal controls to safeguard. channel and record reSoUr￿S as intended Work cooperatively with partners in the public interest Operate with propriety and regularity in all its transactions Treat those with whom they deal fairly and honestly Offer redress for failure to meet agreed stakeholder standards; and Give timely, transparent and realistic accounts of the MSSC Decision-making Provide the Ministry of Defen￿ (MOD) with clear. well-reasoned and timely infomation in accordan￿ 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 to managing opportunty and risk Financial management Comply with Public Sector Intemal Audit Standards (PSIAS) in order that the Principal Accounting OffI￿r may receive an annual assurance on risk management, governance and control Use its resources efficiently. economically and effectively. avoiding waste and extravagan Plan to use its resources on an affordable and sustainable path. with agreed limits Cary out procurement and project appraisal objectively and faitly, using cost benefit analysis and seeking good value for money Use. where possible, management information systems to secure assurance about value for money and the quality of delivery and so make timely adjustments Avoid over defining detail and imposing undue Complian￿ costs, either intemally or on the charity's stakeholders and others with whom it deals Page 31 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 STATEMENT OF COUNCIL'S RESPONSIBILITIES Have practical documented arrangements for working in partnership with other organisations, as appropriate Use internal and external audit to improve its intemal controls and performance In order for the Chief Executive OffI￿r to provide assurance on the above matters the following measures are in pla￿. Delegated authorities are formally agreed by the Council under Financial Standing Orders. Part of these require CEO authorisation of all expenditure over £10,000 with three comparable quotations and a business plan required in respect of new projects with a value in eX￿sS 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 the charity The Council as Trustees are responsible for preparing the Report of the Council and the financial statements in accordan￿ with applicable law and regulab'ons. Charity law requires the Council to prepare financial statements for each financial year in accordan￿ with applicable law and United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under charity law the Council must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its net outgoing resources for that period. In preparing these financial statements, the Council are required to= select suitable accounting policies and then appEy them consistently observe the methods and principles in the Charities, SORP make judgments and estimates that are reasonable and prudent stste whether applicable accounting stsndards have been followed. subject to any material departures disclosed and explained in the financial statements prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue to operate. The Council are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005 and Charities Accounts {Scotland) Regulations 2006 (as amended) and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detecb'on of fraud and other I￿egular1ties. The Council are responsible for the Maintenan￿ and integrity of the corporate and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in otherjurisdictions. Page 32 MSSC REPORT OF THE COUNCIL YEAR ENDED 31 MARCH 2024 AUDITORS A resolution to reappoint MHA will be tabled at the Annual Court. Each of the persons who are Trustees at the time when this Twstees, report is approved has confimied that: so far as the Trustee is aware, there is no relevant audit informab'on of which the charity's auditor is unaware, and the Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit Info￿ation and to establish that the charity's auditor is aware of that information. On behalf of the Board.. Jeremy Penn Council Member and Chainnan Marttn Coles CBE Chief Executive Officer & Grant in Accounting OffI￿r 9 July 2024 9 July 2024 Page 33 MSSC INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MARINE SOCIETY & SEA CADETS Opinion We have audited the financial statements of The Marine Society & Sea Cadets (the 'parent charity,) and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities. the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, {United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the group's and parent charity's affairs as at 31 March 2024 and of the group's incoming resources and application of resources, for the year then ended., have been properly prepared in accordan￿ with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordan￿ with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordan￿ with International Standards on Auditing {UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in theAuditorfs responsibilities for the audit of the financial statements section of our reporL We are independent of the group and parent charity in accordan￿ with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audrt evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent charity's ability to continue as a going con￿rn for a period of at least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees With respect to going concern are described in the relevant sections of this report. Page 34 MSSC INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MARINE SOCIETY & SEA CADETS Other infomiation The other information comprises the information included in the Report & Accounts of the Council other than the financial statements and our audttorfs report thereon. The Trustees are responsible for the other information contained within the Report & Accounts of the Council. Our opinion on the financial statements does not cover the other information and, we do not express any form of assuran￿ conclusion thereon. Our responsibility is to read the other informath'on and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a rnaterial misstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there is a material misstatement of this other infomiation, we are required to report that facL We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion- the information given in the Report & Accounts of the Council is inconsistent in any material respect with the financial statements- or sufficient accounting records have not been kept" or the financial statements are not in agr￿ment with the accounting records and retums" or we have not received all the information and explanations we require for our audit. Responsibilities of Trustees As explained more fully in the Statement of Council's Responsibilities, the Trustees are responsible for the preparation of the financial statements which give a true and fair view. and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misststement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the group's and parent charity's ability to continue as a going concern, disclosing, as applicable. matters related to going con￿rn and using the going con￿rn basis of accounting unless the Trustees elther intend to liquidate the Charity or to cease operations, or have no realistic altemative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assuran￿ about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditorfs Report that includes our opinion. Reasonable assuran￿ is a high level of assuran￿, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Page 35 MSSC INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MARINE SOCIETY & SEA CADETS Irregularities, including fraud. are instances of non-complian￿ with laws and regulations. We design procedures in line with our responsibilities, outlined above. to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Obtaining an understanding of the legal and regulatory frameWo￿S that the entity operates in, focusing on those laws and regulations that had a direct effect on the financial statements,. Enquiry of management and those charged with governan￿ to identify any instances of known or suspected instances of fraud" Enquiry of management and those charged with govemance around actual and potential litigation and claims., Enquiry of management about any instances of non-compliance with laws and regulations., Reviewing the design and implementation of control systems in place: Testing the operational effectiveness of the controls., Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness., Evaluating the business rationale of significant transactions outside the normal course of business Reviewing accounting estimates for bias- Reviewing minutes of meetings of those charged with govemance", Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Because of the inherent limitations of an audi( there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Thi5 risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of InStan￿S of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than e￿Or. as fraud involves intentional concealment, forgery, collusion. omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. frc.org.uklauditorsresponsibilities. This description forms part of our Auditorfs Report. Use of our report This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an Auditorfs Report and for no other purpose. To the fullest extent permitted by law. we do not ac￿pt or assume responsibility to anyone other than the Charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. MHA Ststutory Auditor London, United Kingdom Date.. 0610812024 MHA is the trading name of Maclntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313). Page 36 MSSC CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 Notes Unrestricted Restricted Endowment 2024 2023 Funds £'ooo Funds £'ooo Funds £'ooo Total £'ooo Total £'ooo INCOME AND ENDOWMENTS FROM: Donatlons and legacies 806 3,440 4,246 1,574 Charitable activities 1,616 12,008 13,624 14,251 Other trading activities 32 32 Investments 940 635 TOTAL INCOME 3,394 15,448 18,842 16,503 EXPENDITURE ON: Raising funds 389 389 364 NET INCOME AVAILABLE FOR CHARITABLE ACTIVITIES 3.005 15N48 18,453 16,138 Total charitable activity costs 14.587 18,231 18,416 TOTAL EXPENDITURE 4,033 14.587 18,620 18,780 Balance carry forward (639) 861 222 (2.277) The notes on pages 42 to 64 fonn an integral part of these accounts Donations and legac4e$ indudes unr&strh* cDsts of raisirNJ ￿re8¢n(led and restrpaed iThxJrre. Page 37 MSSC CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) YEAR ENDED 31 MARCH 2024 Notes Unrestrfcted Designated Restricted Endowment 2024 2023 Funds £'ooo Funds £'ooo Funds £'ooo Funds £'ooo Total £'ooo Total £'ooo NET INCOME (EXPENDITURE) BEFORE INVESTMENT GAINS (LOSSES) Brought Forward (639) 861 222 (2,277) Net gains (losses) on investments 12 847 (889) NET INCOME (EXPENDITURE) (6391 861 847 1,069 (3, 166) Transfers between funds 17, 18 561 (561) NET MOVEMENT IN FUNDS 178) 861 1,069 (3, 166) TOTAL FUNDS 1 APRIL 2023 1.492 1.774 15.671 17,384 36.321 39,487 TOTAL FUNDS 31 MARCH 2024 15- 18 1,414 1,213 16,532 18,231 37,390 36.321 All amounts relate to continuing activities. The notes on pages 42 to 64 fomi an integral part of these accounts Page 38 MSSC CONSOLIDATED BALANCE SHEET 31 MARCH 2024 2024 2Q23 Notes £'ooo FIXED ASSETS Intangible assets Tangible assets Investments £'ooo £'ooo 10 11 12 177 15,169 20,216 35,562 435 12,755 19,219 32,409 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 477 238 8,258 8,973 13 980 5A42 6,885 CREDITORS Amounts falling due within one year 14 5,058 5,061 NET CURRENT ASSETS (LIABILITIES) 1.827 3,912 NET ASSETS 37,389 36,321 THE FUNDS OF THE CHARITY Unrestricted funds Fixed assets other 15-18 570 570 922 1,492 1,774 1,412 1,214 Designated funds 17 Restricted funds Fixed assets other 15 15 5,630 10,902 8. 606 7,065 15,671 16,532 Endowment funds 16 18,231 17,384 37,389 36,321 Approved by the Trustees on 9 July 2024 and signed on their behalf. Jeremy Penn Council Member & Martin Cole Chief Executive Offi￿r offi￿ hairman ra unting The notes on pages 42 to 64 form an integral part of these accounts Page 39 MSSC CHARITY BALANCE SHEET 31 MARCH 2024 2024 2023 Notes £'ooo £'ooo £'ooo FIXED ASSETS Intangible assets Tangible assets Investments 10 11 12 177 15.169 20,221 35.567 435 12,755 19,224 32,414 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 463 991 5.396 477 255 8,210 13 6.850 8,942 CREDITORS Amounts falling due within one year 14 5,055 5,059 NET CURRENT ASSETS (LIABILITIES) 1,795 3,883 NET ASSETS 37,362 36,297 THE FUNDS OF THE CHARITY Unrestricted funds Fixed assets other 570 815 570 898 1,468 1,774 1.385 1,214 Designated funds Restricted funds Fixed assets other 15 5,630 10,902 8,606 7,065 15,671 16,532 Endowment funds 16 18,231 17,384 18 37.362 36,297 Approved by the Trustees on 9 July 2024 and signed on their half- Jeremy Penn Council Member & C Martin Coles Chief Exec Offi￿r irman Ive Offi￿r & Grant in Aid Accounting The notes on pages 42 to 64 forni an integral part of these accounts Page 40 MSSC CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2024 Notes 2024 2023 £'ooo £'ooo CASH FLOWS FROM OPERATING ACTivrriES: Net cash (used by)Iprovided by operatlng activities CASH FLOWS FROM INVESTING ACTIVITIES: (2731 (864) Interest received Investment income Purchase of fixed assets PrO￿edS from sale of fixed assets Purchase of investments Proceeds from sale of investments 76 864 (3,332) (1) (8,004) 7.854 36 599 (600) 10&11 12 12 (8,302) 8,275 Net cash generated byl(used in) investing activities 12,543) 11 INCREASEIIDECREASE) IN CASH AT BANK AND IN HAND IN THE YEAR (2.816) (853) CASH AT BANK AND IN HAND 1 APRIL 2023 8.258 9,110 CASH AT BANK AND IN HAND 31 MARCH 2024 5,442 8,258 NOTES TO CASH FLOW STATEMENT (a) Reconciliation of net income (expenditure) to Net cash flows from operating activities 2024 2023 £'ooo £'ooo Net incomel(expenditure) Depreciation (Gains)Ilosses on investments Gains l (Losses) on the sale of tangible fixed assets Decrease in stocks Decrease in debtors Increasel(Decrease) in creditors Interest received and investment income 1,069 1.167 (847 (3, 166) 1,163 889 20 97 259 510 (635) 10 &11 12 14 1742 {940) Net cash (used by)Iprovlded by oporating activities 1273) (864) As the Group does not have any debt, an analysis of net debt has not been produced. The notes on pages 42 to 64 fonn an Integral part of these accounts Page 41 MSSC NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES Basis of Preparation The financial statements have been prepared on a consolidated basis in accordance with the Statement 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 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. The ff nancial statements have been prepared to give a 'true and fairf view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true 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 {FRS 102). The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless othe￿ise stated in the relevant accounting policy. The results of the charity and its subsidianes are consolidated on a line-by-line basis after intercompany transactions and balances have been eliminated. The charity is well placed to manage the business risks we fa￿. The position is supported by a strong cash flow, a sufficient level of reserves and a g¢)od relat'onship with our key funders. We therefore have a reasonable expectation that we have sufficient reSoUr￿S to continue in operational existence for the foreseeable future and believe that there are no material uncertainties that call into doubt the ability of the charity to continue as a going concern. Whilst one of the main charitable purposes of the Fund is to support the activities of Sea Cadets and seafarers, the level of this ne￿SSary expenditure is at the discretion of the Trustees and can be adjusted during the year. The Trustees have also considered the Group's working capital and capital expenditure requirements. As a result of the foregoing the Trustees are satisfied that it is appropriate to prepare the accounts on a going cOn￿M basis. The key sources of estimation andlorjudgement that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies below. The Trustees are not aware of any areas where signtficant changes to key accounting assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carying amounts in the next financial year. b) Donations, legacies and other income Income is recognised when the chanty has eamed entitlement, receipt is probable and the amounts involved can be measured with reasonable certainty. This policy is applied as ft)Ilows.' Donations are recognised when re￿ived, grants are recognised when re￿1vable unless they are restricted for use in a future accounting period in which case they are deferred. Legacies are recognised at the earfier of re￿ipt, completion of estate accounts or notification by the executors of an estate of a distributs'on. Income received from the sale of goods and Servi￿ is recognised in the year the Sale occurs or the good is provided. Income from training, events and offshore acb"vities is recognised in the year the activity or event is delivered. Page 42 MSSC NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (CONTINUED) Expendlture Expenditure is classified by direct allocation of costs and best estimates of usage of costs whe relevant, as follows: Raising funds- The cost of raising funds comprises costs associated with raising funds from all sources and includes fundraising costs, costs of events and investment management costs. Charitable expenditure.. Direct costs are allocated to functional cost headings based on supporting cost ￿ntre analyses. Overheads (including irrecoverable VAT) are included in support costs and are allocated to functional cost headings on the basis of headcount (see note 9). Irrecoverable VAT is included in support costs as an overhead cost. Govemance costs are included in support costs. d) Recognition of liabilities and grants Liabilities are recognised either on the date goods or ServI￿S are received, or when recipients are given a reasonable expectation that grants will be made and the conditions of those grants have b*n met. Definition of liquid resources Liquid reSoUr￿S included on the cash flow statement are those held as cash at bank and in hand. Pension costs Pension contributions are made to a defined contribution pension scheme and are written off to the Statement of Financial Activities as they are incurred. The chanty also makes contributions to a multi- employer defined benefit scheme in respect of former employees. These amounts are also written off as incurred together with any known commitments to fund the deficit of the scheme, where they relate to past servi￿. g) Intangible and tangible fixed assets Capital items with a value over £5,000 are treated as fixed assets. Depreciation l amortisation 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 1.66Y. 10Vo Lease te￿￿ 5° Boats and dinghies Motor vehicles Furniture, Fixtures & Fittings Computers & sofvare 10% 25% 20% 250 202 Lambeth Road continues to be treated in line with this polrcy during its current marketing for sale, pending exchange of contracts. following which it will be reassessed on a market value basis. Investments h) Investments are included in the Balance Sheet at fair value. Realised investment gains and losses represent the difference be￿een 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 impairment every year and revalue the investments on a marf(et basis at least every five years. stocks Stock is valued at the lower of cost. including irrecoverable VAT. and market value. Page 43 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES ICONTINUED) i) Endowment and Restricted Funds Restricted funds represent gifts or grants, which can On￿ be applied for a purpose specified by the donor or grantor. These amounts are carried forward as deferred income where there is a restriction on when monies can be spent. All monies re￿iVed from the MOD are treated as restricted funds. Designated funds for investments in future investments including boat stations and outreach work have been set up. Endowment funds are classified as either pemanent - those where the donor has specified that the capital of the gift cannot be expended and that only the income arising from the capital may be used for the specified purpose. Altematively, they may be expendable rf they relate to those that were given where the intention was clearly for the donation to be held for the longer term but where the funds are ultimately expendable. k) Heritage assets The charity has received donations of various naval and maritime paintings and artefacts over its 265 year history. A number of these are housed at the National Maritime Museum in Greenwich and at Chatham Historic Dockyard in Kent. These assets are retained for their historical and cultural significance in relation to the work of the charity, which illustrate and show the unique Servi￿ the charity has given to the nation. The assets are not held on the balance sheet as they were either donated or have long since been written off, and are not held for their financial value. It is not the policy of the charity to obtain further artefacts but to preseNe those of heritage significance that it owns, which it does with the help of the National Maritime Museum. Alongside the planned relocation of the national offices of the charity, the Trustees reviewed the artefacts held and determined those that should be held for posterity, those that should be gifted to relevant museums and those to be sold. Effecting this is ongoing. No material artefacts have been acquired in the last five years. Financial instruments The charity only has financial assets and financial liabilitres of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors, and accrued income. Financial liabilities held at amortised cost comprise, trade and other creditors, grants payable and accruals. Income arising from financial assets, comprising bank interest is recognised within income and expenditure. Non property investments. including bonds held as part of an investment portfolio, are held at fair value at the balance sheet date, wilh gains and losses and investrnent income being recognised within income and expenditure. Investments in subsidiaries are held at cost less impairment. Page 44 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 DONATIONS AND LEGACIES Unrestricted £'ooo Restricted £'ooo Endowment £'ooo Total £'ooo 2023124 analysis of Income Donations and subscriptions Legacies Other Major Grants 1 Boat station appeals Bursaries Other restricted fvnds Area5, Branches and Other Income 80 173 80 173 819 2.150 156 210 658 819 2.150 156 210 105 553 806 3A40 4.246 2022123 analysis of income Donations and subscriptions Legacies Other Major Grants Boat station appeals Bursaries Other restricted funds Areas, Branches and Other Income 118 123 118 123 432 135 64 245 457 432 135 245 111 346 587 987 1,574 Legacy One significant legacy was received this year. Other Major Grants 1 Includes grants from DCMS, Seafarers, UK, Trinity House Maritime Charity and Johnnie Johnson Trust Boat Station Appeals Include major donations from Youth Investment Fund (Midland Boat Station) and DCMS Other Restricted Funds Include major donations from IFAN, ESFA, Shipwrights, Association of Sail Training. Gosling Foundation, Jack Petchey Foundation and Michael Uren Foundation Page 45 MSSC NOTES TO THE ACCOUNTS {CONTINUED) YEAR ENDED 31 MARCH 2024 INCOME FROM CHARITABLE ACTIVITIES Unrestricted 2024 £'ooo Restricted 2024 £'ooo Total 2024 £'ooo Un￿Stricted 2023 £'ooo Restricted 2023 £'ooo Total 2023 £'ooo MOD grant in aid MOD other grants Seafarer education and support Sea Cadet Corps training Offshore fleet income 11.577 11,577 12,429 12,429 431 431 404 515 517 716 716 718 718 496 496 587 587 1,616 12,008 13.624 1,820 12,431 14,251 In addition to the MOD grant in aid (for Sea Cadets activity), the charity receives significant support in kind from the MOD. Eleven Royal Navy personnel are provided on loan. six area offices, three Sea Cadets training centres, Sea Cadets stores, the offshore offI￿S and berthing facilities are also provided at 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 provided by the Royal Navy. These are specialised supplies and so there is no commercial value or open market valuation. INVESTMENTS Unrestricted 2024 £'ooo Restricted 2024 £'ooo Totsl 2024 £'ooo Unrestricted 2023 £'ooo Restricted 2023 £'ooo Total 2023 £'ooo Investment income (excluding Rental income) Rental income Bank interest 622 242 76 622 242 76 377 198 36 24 401 198 36 940 612 24 635 Page 46 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 ANALYSIS OF EXPENDITURE Unrestricted 2024 Reslricted 2024 Total 2024 Unrestricted 2023 Restricted 2023 Total 2023 £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Safeguarding, supporting Sea Cadets activity & infrastructure Sea Cadet Corps training Offshore fleet Professional seafarer education and support Promoting Sea Cadets activity 1,084 8,529 9,613 1.088 8.009 9, 096 1,637 269 2,892 2,552 4.529 2.821 703 287 4,436 2.470 5. 139 2, 757 574 92 666 686 244 930 80 522 602 51 442 494 14,587 18.231 2.815 15,601 18.416 Direct Salary Costs Support costs (note 7) Grants Other Total £'ooo £'ooo £'ooo £'ooo £'ooo 2023124 analysis 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 activity 57 43 57 328 74 618 3.847 1,809 3.582 1,616 1.439 1.566 1.020 389 9,613 4,529 2,821 12 15 287 238 7,373 295 219 69 145 666 602 18,620 729 7,255 3,263 Page 47 MSSC NOTES TO THE ACCOUNTS {CONTINUED) YEAR ENDED 31 MARCH 2024 5. ANALYSIS OF EXPENDITURE (CONTINUED) Direct Salary Costs Support costs (note 7) Grants Other Total £'ooo £'ooo £'ooo £'ooo £'ooo 2022123 analysis 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 activity 38 67 38 322 215 41 t, 150 3,338 1,458 763 3,322 2, 858 1.539 1,286 820 353 9,096 5,139 2, 757 102 32 313 206 513 216 72 71 930 494 18,780 1.287 6,293 8,557 2, 643 other costs include all direct expenditure in relab'on to areas. branches. onshore and offshore activities. 6. GRANTS PAYABLE Grants payable were as follows" 2024 £'ooo 2023 £'ooo Grants to institutions Grants to individuals 739 532 885 431 1,271 1,316 Individual grants given are small and not material within the overall total. Grants to institutions comprise grants made to Sea Cadets units to reimburse expenditure towards premises, minibuses, junior units and emergency needs. It also includes the provision of boats and equipment to units and unit hubs. Grants to individuals comprise grants to Sea Cadets volunteers for uniforms and bursaries for cadets to take part in activities. Support costs in relation to grants payable are included within note 7 below. Grants payable at the year-end are included with creditors (see note 14). Page 48 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 SUPPORT COSTS The support costs of the chanty consist of four elements: ManagenEnt, Finance & Digital, Premises, and Human Resources. These costs have b&n apportioned across the work of the charity on the basis of staff numbers in each funcb'onal area. The apportioned costs are set out below: Fundraising Safeguarding and SC Infrastructure Sea Cadets Training Offshore fleet Professional seafarer education and su £'ooo Promots'ng Sea Cadets activi £'ooo 2024 Total £'ooo £'ooo 124 47 £'ooo 81 31 £'ooo 31 12 £'ooo 261 100 Mana EDI ement Finance and Digital 13 656 427 162 12 76 1,346 Premises Human Resources Governance 23 19 346 277 225 181 86 69 22 17 26 21 728 116 1.566 75 1,020 29 389 244 3,263 2024 74 69 145 Included within Support costs are salary costs of £1.382K (2023: £1,273K). Irrecoverable VAT costs included within Support costs amounted to £107K (2023: £88K). Total Governance costs included in Support were £244K (2023.. £189K). These included auditors. fees for external audit £63K (2023: £54K) and tax advice £17K (2023.. £11Q. Seafarer L￿at￿ & suptort SabJuardirNJ & SuFwtyrKJ SC & infrastr Promote SC FLr*Jwing Offshye fleet 2023 Total £'ODO £oc() naJem￿l EDI Finance & Digita Premises 104 225 10 11 12 372 163 180 59 820 150 70 74 25 353 17 20 21 1,163 531 535 189 2,643 253 253 92 1.286 14 15 HR ¥frnarce 41 72 71 Page 49 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 SUBSIDIARY ORGANISATIONS The Sea Cadet Association is a charitable company registered in England and Wales (company number NLJmber 404951 and Charity Number 306141). The charity was domant in the current year and both net income and net assetslfunds for the year were £nil (2023: net income and net assetslfunds." £nil). The organisation is retained as it is counterparty to 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 a £5K (2023.. £5K) investment in MSSC {Trading) Limited (note 12), representing 1000/0 of the issued share capital of that company. The results of the company for the year and its balan￿ sheet at the year end were as below. The company made a charitable donab'on in the year of £24K (2023.. £5k) to the charity. The company anticipates making a charitable donation to the charity of £3K in 2024125 based on profits eamed in 2023124. Yearend net assets stand at £32K (2023.£29K). 2024 £'ooo 2023 £'ooo Turnover Purchases for resale other operating charges Profit on Ordinary Activities before taxation Taxation Profit on Ordinary Activities after taxation 31 28 27 24 27 24 Retained profit at 1 April 2023 Charitable donation to the Marine Society & Sea Cadets (24) Retained profit at 31 March 2023 24 2024 £'ooo 2023 £'ooo Current Assets Debtors Cash at bank and in hand 25 23 48 71 71 Creditors Amounts falling due within one year 139) (42) Net Current Assets 32 29 Net Assets 32 29 Capital and Reserves Called up share capital Profit and loss account 27 24 32 29 Page 50 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 STAFF COSTS 2024 £'ooo 2023 £'ooo Wages and salaries Social security costs Pension fund contributions Health insuran 7.468 683 498 128 6, 880 622 444 62 8,777 8,008 The figures above include £25k for four settlement agreements concluded in the year related to redundancies. The average head count was 207 staff (2023.. 193) and the average full time equivalent numbers of employees were as follows: 2024 2023 Fundraising Supporting Sea Cadets activity and infrastructure Sea Cadets training Offshore fleet Promoting Sea Cadets activity Seafarer education and support 83 62 22 83 65 22 186 186 Included within staff costs are £1,382K (2023: £1. OOOK) support costs and £nilK (2023.. £nilK) costs capitalised within Fixed Assets. The key management personnel of the charity comprise the Trustees. the Chief Executive Offi￿r and the six (2023.. six) Directors in post (senior management team) listed under Executtve Management on page 63. Their total remuneration, (including those not in post at the year*nd), including social security costs and pension contributions was £756K (2023: £714K). The Trustees did not receive any remuneration from the charity during the year but were reimbursed for some travel costs, where they chose to claim. Four (2023.. Five) Trustees claimed travelling expenses totalling £1.OK (2023.. £1.2K). Twelve employees eamed over £60K (2023". ten). Bandings.. 2024 2023 £60K- £70K £70K - £80K £80K- £90K £90K- £100K £110K- £120K These figures include pension allowances paid to one indivTrdual {2023: one} in lieu of employer pension contributions that would otherwise be payable but not shown within remuneration. Page 51 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 10. INTANG18LE FIXED ASSETS (GROUP AND CHARITY) Computers & software Total £'ooo £'ooo COST At 1 April 2023 Additions in period Disposals in period At 31 March 2024 1.666 1,666 1.672 1,672 AMORTISATION At 1 April 2023 Provision in period Disposals in period At 31 March 2024 1.231 264 1,231 264 1,495 1,495 Net book value At 31 March 2024 177 177 Net book value At 31 March 2023 435 435 Above includes £nilK (2023: nilK) in respect of assets under constructton. Page 52 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 11. TANGIBLE FIXED ASSETS IGROUP AND CHARITY) Freehold bullding Building improve- ments £'ooo Shlps FurnlhAre & boats & fittings Motor vehicles Computers Total £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo COST At 1 April 2023 Additions in period Disposals in period At 31 March 2024 717 8,950 11.096 465 Iq5 21,697 3,286 13 27 3,326 70 70 717 12.236 11,096 367 422 115 DEPRECIATION At 1 April 2023 Provision in period Disposals in period At 31 March 2024 627 1.936 5.575 327 398 79 12 297 528 43 15 903 62 62 639 2,233 6.103 336 379 94 9,784 Net book value At 31 March 2024 78 10,003 4.993 31 21 15.169 Net book value At 31 March 2023 90 7.014 5,521 27 67 36 12,755 Building improvements include assets under construction £3,626K (2023: £340K). These are not depreciated until complete. Page 53 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 12. INVESTMENTS GROUP INVESTMENTS Investment Portfolio £'ooo Properties £'ooo Cash £'ooo Total £'ooo Fair value at 1 April 2023 17.032 1,200 987 19.219 Additions at cost 5,682 (85) 5,597 Disposal prO￿edS (7.854) 2,407 (5,447> Movement in Cash 3,294 (3,294) Gain for the year 847 Fair value at 31 March 2024 19,001 1.200 15 20,216 CHARITY INVESTMENTS Investment Portfolio £'ooo Properties £'ooo Cash £'ooo Subsidiary £'ooo Total £'ooo Fair value at 1 April 2023 17.032 1.200 987 19,224 Additions at cost 5.682 {85) 5.597 Disposal prO￿edS 17.8541 2.407 (5,447) Movement in Cash 3,294 (3,294) Gain for the year 847 Fair value at 31 March 2024 19,001 1.200 15 20,221 All investments are held in the UK. The subsidiary investment is in MSSC {Trading) Limited, note 8. The cost of the Investment Portfolio including cash was £18,004K {2023." £15,292k).The investment property was 206 Lambeth Road - valued by a Member Royal Institution of Chartered Surveyors. Fund analysis of gains and (losses): 2024 £'ooo 2023 £'ooo Endowment (note 16) 889 Total gains (losses) 847 (889) Page 54 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 13. DEBTORS Group 2024 Group 2023 Charity 2024 Charity 2023 £'ooo £'ooo £'ooo £'ooo Trade debtors Amounts due from MSSC (Trading) Ltd Loans Other taxation and social security other debtors Prepayments Accrued income 264 44 33 28 35 63 171 63 171 121 64 121 64 980 238 991 255 14. CREDITORS: Amounts falling due within one year Group 2024 Gmup 2023 Charity 2024 Charity 2023 £'ooo £'OL £'ooo £'ooo Trade creditors Amount due to Slater Other taxation and social security Grants payable Other creditors Pension provision (note 19) Accruals Deferred income 629 116 185 1.247 706 276 (101) 171 1,723 709 629 276 (101) 171 1,723 709 185 1,247 704 1,746 429 1.922 361 1.743 429 1.920 361 5,058 5,061 5,055 5, 059 £273K (2023.. £536k) of accruals and £32K (2023.. £40k) of deferred income balances at 1 April 2024 are included in creditors at 31 March 2024. These should be released in 2024125. Grants Payable BIForward £k Grants paid in year £k Grants given or provided for in year £k 590 Carry fopward £k 1,247 1,723 (1.066} Payment of grants made is Most￿ condrtional on the balan￿ of funding for propety projects being raised by the grant recipient. Deferred income BIForward £k Income recognised in year £k New Deferrals £k Cary forward £k 361 (348) 416 429 Most of the deferrals were related to Ye￿ipts related to courses stsring after April 2024. Page 55 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 15. RESTRICTED FUNDS (GROUP AND CHARITY) Balance Movement of funds 1 April Income Incomel 2023 Interest Balance 31 March 2024 £'ooo Donor Purpose Expend -iture Transfer £'ooo £'ooo £'ooo £'ooo £'ooo MOD Grant in Aid 11,577 (11,577 MOD Other Grants 2,631 441 (812) {239) 2,021 Offshore ships and boats2 Various 5,239 886 (1.185) 399 5.339 Various Sea Cadets training 1,687 2.228 (351) (1,371) 2,193 Boat stations- MidlandlPEBS4 1.176 Various 4.177 1154) 5,199 Sea Cadets unit grants Various 128 (218) 35 633 Area Sea Cadets Training Various 828 107 1163) 772 Various Seafarer training 160 188) 72 Various Bursaries 165 81 135) 211 Corbyn Memorial Fund Nautical education 22 {4) 18 Thomas Gray Memorial Maritime Scien Trust and Technology Vartous Other 74 74 15,671 15,448 (14,587 16.532 (continued) 1 RN Amiaments securty fund £2m Offshore restricted assets £5m 3 Midlands Boat station £1.2m 4 Boat stations restricted assets £5.2m The residual funds are made u of multi le small funds for s cific ur oses. Page 56 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 15. RESTRICTED FUNDS (GROUP AND CHARITY) {2022123) Balance 1 Aprll 2022 Movement of funds Income Incomel interest Balance 31 March 2023 Donor Purpose Expend 4ture Transfer £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo The Sea Cadet Corps MOD 2,692 12,129 (11,876) (314) 2,631 Various Offshore ships and boats 5.861 178 1809) 5,239 Various Sea Cadets training 2.180 415 (918) 10 1,687 Various Cadet expansion Programme 4,340 {163) 4,177 Sea Cadets unit grants Various 1,496 11,253) 688 Various Area Sea Cadets Training 906 1194) 828 Various Seafarer training 242 92 (173) 160 Various Bursaries 262 (1461 165 Corbyn Memorial Fund Nautical education (28) 22 Thomas Gray Memorial Maritime Science Trust and Technology 40 (40) Various Other 74 74 18,143 13.418 (15,601) 24 1314) 15.671 Transfers relate to funds spent on capital purchases. They transfer equivalent of depreciation charges required in future years. Page 57 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 16. ENDOWMENT FUNDS (GROUP AND CHARITY Balance 1 April 2023 £'ooo Movement of funds Investment Donationsl returns (transfers) £'ooo £'ooo Balance 31 March 2024 £'ooo Donor Purpose Corbyn Memorial Grants and payments Fund for Nautical Education 225 11 236 Thomas Gray Memorial Trust Advan￿ment of Maritime Technology and Scien 108 113 Destitute Sailors Fund Assisting distressed merchant seamen 68 71 Various Providing subsidised berths and award5 to Sea Cadets 531 26 557 Expendable Endowed Funds Held for general purposes 16.453 801 17.254 17.384 18,231 Balance 1 April 2022 £'ooo Movement of funds Investment Donationsl returns (transfers) £'ooo Balance 31 March 2023 £'ooo Donor Purpose £'ooo Corbyn Memorial Grants and payments Fund for Nautical Education 237 (12) 225 Thomas Gray Memorial Trust Advancement of Maritime Technology and Scien 114 1Q8 Destitute Sailors Fund Assisting distressed merchant seamen 71 68 Various Providing subsidised berths and awards to Sea Cadets 558 (27) 531 Expendable Endowed Funds Held for general purposes 17,294 (841) 16,453 18,273 (889) 17,384 Page 58 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 17. DESIGNATED FUNDS Balance 1 April 2023 £'ooo Movement of funds Investment Donationsl returns (transfers) £'ooo £'ooo Balance 31 March 2024 £'ooo Fund Cadet Outreach 83 83 Boat station 1,007 (463) 543 SC future projects 373 215 588 Expedition equipment 198 1198) Environmentsl grants 113 (1131 1,774 (559 1,214 Balance 1 April 2022 £'ooo Movement of funds Investment Donationsl returns (transfers) £'ooo £'ooo Balance 31 March 2022 £'ooo Fund Cadet Outreach 83 83 Boat station 1,004 1.007 SC future projects 373 373 Expedition equipment 198 198 Environmental grants 113 113 1,460 314 1, 774 Page 59 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 18. ANALYSIS OF NET ASSETS BETWEEN FUNDS GROUP Intangible & tangible rixed assets £'ooo Investments Net current assets and long term 2024 Total £'ooo £'ooo £'ooo Restricted funds 14,803 1.729 16,532 Endowment funds 18,231 18,231 Designated funds Unrestricted funds 543 605 66 1.214 1,412 1,380 32 Total 15,346 20.216 1,827 37,389 GROUP Intangible & tangible fixed assets £'ooo Investments Net current assets and long terni liabilities £'ooo 2023 Total £'ooo £'ooo Restricted funds 12.484 3, 187 15,671 Endowment funds 135 17.249 17,384 Designated funds 1.460 314 1, 774 Unrestricted funds 570 510 411 1,492 Total 13,189 19.219 3.912 36,321 Page 60 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 18. (Contl CHARITY Intangible & tangible fixed assets £'ooo Investments Net current assets and long temi liabilities £'ooo 2024 Total £'ooo £'ooo Restricted funds 14,803 1.729 16,532 Endowment funds 18,231 18,231 Designated funds Unrestricted funds 543 605 66 1,214 1,385 1.385 Total 15,346 20,221 1,795 37,362 Intangible & tangible rixed assets £'ooo Investments Net current assets and long temi liabilities £'ooo 2023 Total £'ooo £'ooo Restricted funds 12,484 3.187 15,671 Endowment funds 135 17.249 17,384 Designated funds Unrestricted funds 1,460 314 1, 774 570 515 382 1,468 Total 13.189 19,224 3, 883 36,297 19. TAXATION No corporation tax is payable due to the charitable status of the activib'es of the charity. Page 61 MSSC NOTES TO THE ACCOUNTS (CONTINUED) YEAR ENDED 31 MARCH 2024 20. PENSION SCHEMES (GROUP AND CHARITY) A number of former employees of the forrrer Marine Society and of the Sea Cadet Association are members of the Merchant Navy Officers Pension Fund - MNOPF (New Section). The fund is active, though closed to future accrual on 31 March 2016. However, the MSSC continues to have a share of the net deficit in the fund. The most up to date actuarial report is at 31 March 2023 valued assets in the scheme at £2,106M and the liabilities at £2,117M giving a rise to a scheme wide deficit of (£11M). As at the date of the 2023 valuation no deficit contributions were required. No share of assets and liabilities have been identified. All current employees are members of a contract based defined contribution scheme. £498K (2023.. £444K) was paid by the charity during the year of which £44K (2023: £55K) was outstanding at the year end and included in creditors. 21. RELATED PARTY TRANSACTIONS ICHARFTY) The Director of Young People, Volunteer & Business Support is an ex officio trusteeldirector of the Royal Albert Dock Trust during the year, the charity paid rent to the Royal Albert Dock Trust's London Regatta Centre totalling £25,803 (2023.. £600). For part of the year one Trustee was Deputy Master of Trinity House. Four of the Trustees of the charity are Younger Brothers of Trinity House Maritime Charity During the year the charity received a grant of £130K (2023.. £130K) from the Trinity House Maritime Charity. No amounts were outstanding to the charity at the year end. One of the Trustees is employed by J&J Denholm. They support MSSC, during the year the charity received a donation of £5k (2023=£8k) One of the Trustees is a trustee and non*xecutive director of IFAN maritime. They support MSSC on various educational projects, during the year the charity received a grant of £nil (2023.. £40k). One of the Trustees is an Associate Member of Stelios Philanthropic Foundation who has supported Sea Cadets projects with a grant of £nil (2023.. £30k). Three Trustees and the CEO are members of the Company of Shipwrights who have funded £14k for bursaries (2023.. £14k). The Director of Maritime Training and Development is a Fellow of the Nautical Institute who rent Offi￿ spa in London amounting to £117k (2023: £21k). One of the Trustees is Headteacher of the London Nautical School. During the year the charity paid a grant of £22k (2023.. £39k) The charity was paid £nilK (2023: £4K) for management and accounting services from its subsidiary undertaking MSSC (Trading) Limited (note 8). A charitable donation amounting to £24K (2023.. £5kl was received from the subsidiary. The charity anticipates re￿IVIng a charitable donation from the subsidiary of £3K in 2024125 based on profits earned by the company in 2023124. At the year end, the charity was owed £35K (2023.. £24K) by the subsidiary and this amount is included in charity debtors. The Chair of FIRA, Stuart Curl, and two employees, 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. 22. STATUTORY INFORMATION The Marine Society and Sea Cadets (MSSC) is a charity registered with the Charity Commission in England and Wales (registration number 313013) and with the Office of the Scoth'sh Charity Regulator (registration number SC037808). The registered office is 200b Lambeth Road, London SE17JY. 23. FUNDS HELD AS AGENT Balance bl￿d Ex Income Balance clfivd 101 433 651 116 MSSC administers the fund on behalf of Slater Foundation. This involves managing individual awards, payable to either students or educational institutions on behalf of the students. MSSC make these payments fortnightly and is reimbursed quarterly by Slater Foundation. In recognition of this Slater Foundation donates £30k to MSSC annually. enditure Page 62 MSSC COUNCIL MEMBERS AND EXECUTIVE MANAGEMENT YEAR ENDED 31 MARCH 2024 Council members and executive management during the year, and as at the date of this report, were: PRESIDENT: Admlral Sir Philip Jones GCB DL COUNCIL MEMBERS The Council members who served during the year were: Jeremy Penn (Chair) Liz Cassidy (Vice Chair) ' (Retired 31 March 2024) Simon Figgis steve Smith 2, 3 Alan Marsh MBE FICS I John May OBE DL 2.3 Captain Sir lan McNaught KCVO MNM (Retired 11 October 2023) Vice Admiral Sir Jonathan Woodcock KCB OBE 2. 3.4 David Derbyshire Léonie Austin {Vice Chair- from 1 April 2024) David Dingle CBE1.2 Jonathan Robertshaw 1,2 Michael Schofield 2. 3 Gareth Hampton Laurelle Brant 2. 3 Christine Baldwin MRICS 2. 3 Lukshmy Miranda Nagalingam (Retired 27 June 2024) Kirsten Nuade 2. 3 {Elected 11 October 2023} John Denholm 1. 2 (Elected 11 October 2023) (Retired 31 March 2024) Council Members are members of the following committees as annotated above. The Finance, Investment, Remuneration and Audit Commrttee The Policy Development and Nominations Committee The Safety, Safeguarding, Inclusion & Risk Committee The National Sea Cadets Advisory Council The National Sea Cadets Forurn EXECUTIVE MANAGEMENT Chief Executive Officer Martin Coles CBE FRICS ACIArb Captain Sea Cadets & Director of Operations" Captain Neil Downing RN Director of Finance & Digitsl and Company Secretary Jenny Howard Director of Young People, Volunteer & Business Paul Wilkinson Support Director of Sea Cadet Leaming Director of Fundraising and Communications Director of Human Resources Director of Maritime Training and Development Heather Williams Daniel McAllister Petrina Brooker Darrell Bate provided on loan from the Royal Navy Page 63 MSSC PROFESSIONAL ADVISERS YEAR ENDED 31 MARCH 2023 The principal professional advisers during the year were: Auditors: MHA 2 London Wall Place London EC2Y SAU Bankers". Barclays Bank plc 1 Churchill Place London, E14 5HP National Westminster Bank plc 250 Regent street London, W1 B 3BN Royal Bank of Scotland plc 62-63 Threadneedle Street London, EC2R 8HP Investment Advisers and Custodians: Cazenove Capital 1 London Wall Place London EC2Y SAU KW Investment Management Ltd 13 Austin Friars London. EC2N 2HE Legal advisers: Farrer & Co LLP 66 Lincoln's Inn Fields London, WC2A 3LH Moon Beever 21A John Street London, INC1 N 2BF Russell Cooke 2 Putney Hill London, SW15 6BA Insurance Brokers: Arthur J. Gallagher Insuran￿ Brokers The Walbrook Building 25 Walbrook London, EC4N 8AW Pension Advisers: Mer￿r Limited 1 Tower Place West, Tower Place, London, EC3R 5BU Registered Office.. 200b Lambeth Road London, SE17JY ms-sc.org Page 64