The Chatham Historic Dockyard Trust
Trustees' Report and Financial Statements for the year ended 31March2014
Company number 1804108
Registered Charity number: 292101 Patrons, Trustees, senior managers teain and advisors,
Patron HRH The Prince of Wales
Vice Patrons Mr Allan Willett CMG CVO Admiral the Lord Boyce KG GCB OBE DL The Rt. Hon Sir Timothy Sainsbury Kt PC Rear Admiral Sir Donald Gosling KCVO RNR
Trustees Admiral Sir Ian Garnett KCB (Chairman) Sir Ian Andrews CBE, TD Mr j A S Bassett (resigned 8 May 2013) Councillor David Carr Sir Robert Crawford CBE Mr Murray Hallam (appointed 26 November 2013) Mrs L Nesfield (appointed 22 May 2013) Councillor Craig Mackinlay Mrs S Matthews-Marsh MBE (appointed 22 May 2013) Miss S L Palmer OBE (resigned 8 May 2013) MrP KSarwal Mr j A Spence OBE, DL Mr BT j Stevens (resigned 26'" November 2013) Mr Maurice Storey CB
Senior Managers Mr W S Ferris OBE Chief Executive MrCK:nott Chief Financial Officer Mr RM Holdsworth MBE Museun1 & Heritage Director
Bankers Auditor Barclays Bank PLC Nexia S1nith & Willia1nson PO Box 104 Chartered Accountants Ashford Registered Auditor Kent TN24 8ZB 25 Moorgate London EC2R 6A Y
Solicitors Registered Office Cripps Harries Hall The Historic Dockyard Wallside House Chatham 12 Mount Ephraim Road Kent ME44TE Tunbridge Wells Tel: 01634 823800 KentTNl lEG
\V\V\V. thedockyard.co. uk
1 The Chatham Historic Dockyard Trust Chairman's statement For the year ended 31 March 2014
This Armual Report marks the 30th Anniversary of The Chatham Historic Dockyard Trust, and records a year of considerable achievement and the n1ost successful in the Trust's history. Visitor numbers, self-generated income, investment in tnaintenance and fundraising were at record levels, although the Report also makes clear that despite this good progress the Trust is still working towards its goal of financial self-sufficiency at a revenue level.
We were especially proud to welcome to the Historic Dockyard His Royal Highness The Prince of Wales, its new Patron, and Her Royal Highness the Duchess of Cornwall. We were also delighted to armounce the appointment of four Vice Patrons and twenty-five Dockyard Ambassadors, which recognises the very generous support we have received from 1nany foundations, trusts and individuals.
Within the Report you will find described several important achievements. These include bringing into full use the Sail & Colour Loft, improvements to the Ropery and Hearts of Oak galleries, and the Dockyard's growing reputation as a film location. The very high standard of our visitor services was recognised by two Trip Advisor Certificates of Excellence, and we earned a prestigious Sandford Award for education. Our temporary exhibitions continue to attract new audiences.
The year also saw the successful conclusion of our £8.75m fundraising campaign for the Command of the Oceans project, with work beginning on time in January 2014. We were especially grateful to The Heritage Lottery Fund for its grant of £4.75m. The Report lists the other charitable trusts and foundations, organisations and individuals who have provided their generous support during the year. We remain committed to working with a wide range of partners, especially The Department for Culture Media & Sport, Medway Council, English Heritage, and the Arts Council.
The Board was delighted to welcome three new Trustees to fill vacancies caused by retirement. Sandra Matthews Marsh and Laura Nesfield bring their knowledge and experience of communications and property respectively to the Board, and Murray Hallam, a lawyer of wide experience, especially in the law relating to charities, replaced Brian Stevens. We are especially grateful to Brian for his 13 years loyal service to the Trust.
However, the people to whom we owe so much for today's success are the Trustees and staff who had to struggle so hard in those early years. What we enjoy today, whether as a visitor, a student from the university campus, a resident or business tenant would not have come about without the hard work, commitment and loyalty of every single person who has been part of the Trust these last thirty years. I would like to finish by expressing my personal thanks to today's Trustees and men1bers of staff, full time, part tin1e and volunteer, who have done so much during the year to br/bout this success. c/ut«- c:CV\ \Ai f Sir Ian Garnett ~
Chairn1an
24th September 2014
2 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report For the year ended 31 March 2014
The 'I'rustees, who are also directors for the purposes of the Con1panies Act 2006, present their report, incorporating the sh·ategic report, and the group financial statements of the Trust for the year ended 31 March 2014. The report and financial state1nents have been prepared in accordance v...rith the constitution and the reconu11endations of the Staten1ent of Reconunended Practice 2005 - Accounting and Reporting by Charities, and con1ply 'vith the Con1panies Act 2006, the Charities Act 2011 and applicable law.
OUR CORE OBJECTIVES
Summary of Objects
As a registered charity the Chathan1 Historic Dockyard Trust has t\VO core objects as set out in its Men1orandun1 and Articles of Association, as amended by Special Resolution on 16 December 2003:
• To secure for the public benefit the preservation and use of the Historic Dockyard at Chathan1 in the County of Kent in a inanner appropriate to its archaeological, historical and architectural significance. • To pron1ote and foster for the public benefit a \Vide kno\vledge and understanding of the archaeological, historical and architectural significance of the I-Iistoric Dockyard
Meeting our Core Objectives - The long term strategy
Chatham Historic Dockyard Trust is an independent charity with the stewardship of an eighty acre landholding, co1nprising a unique heritage landscape that has evolved over four centuries. Chatha1n Dockyard supported the Royal Navy throughout that entire period, but especially during the age of sail. That support is unparalleled, whether in tern1s of shipbuilding, fleet 111aintenance or acting as a vital home base.
The collection of buildings and structures that survives and is preserved by the Trust is fundamental to the story of the Historic Dockyard's role in our naval history. It is equally essential to our business 111odel, \vhich is designed to create a truly sustainable fuh1re for this in1portant site, and for its role in educating all v..rho \Vish to lear11111ore about it.
Our objectives of preservation and education n1ust, therefore, ensure that both this heritage site itself, and its association \Vith our naval history, are n1aintained so that all can learn about then1 in an approachable and accessible way. The Trust recognises its obligations to pursue these strategies in as cost effective and sustainable 'vay as possible, \vith the eventual aiI11 of financial sustainability.
Since its formation thirty years ago the Trust has adopted a single strategy designed to meet both objectives through the adaptive re-use and consequent preservation of the buildings and structures in its ste\vardship. This strategy of "Preservation Through Re-Use" has gained n10111entun1 iI1 recent years to the extent that virtually all buildings and land \Vi thin the Historic Dockyard are in productive re-use, either producing rental incon1e to further our objectives or providing space for n1useun1 and visitor attractions. In this \vay the Trust is able to n1eet its core education objective, encouraging all to learn about the histmy of the Dockyard, its people and life at the forefront of our British naval and industrial traditions for centuries.
As a fully accredited n1usetn11 \Ve collect, preserve, shtdy and exhibit objects and inaterials coru1ected \Vith the history of:
• the role of the Dockyard and its people; • the development of Royal Navy livarship design and construction; and
3 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
• the use of the River Med\vay by the Royal Navy and its support services, and their role in the developn1ent of Medway.
Activities during 2013/14
The year sa\v the continued in1ple1nentation of activities designed to n1eet the objectives laid out in the Corporate Plan 2012 to 2016 (w\vw.thedockyard.co.uk/aboutus), and to maxin1ise the diverse incon1e sh·ean1s that fund our tvvin objectives. Substantial progress has been 1nade tovvards the Trust's long ter1n an1bition of beconUng financially self-sufficient in ter111s of annual operating expenditure.
Our resourceful and experienced tean1 has ensured that the buildings and enviro1unent at the Historic Dockyard are syn1pathetically exploited to the full to generate incon1e and resources for our core education objective. Our strategy of preservation through re-use has seen 1nore buildings brought into productive use. Successes over the past year include:
• A significant joint venture \Vith The University of Kent, to bring the Sail and Colour Loft into full use, so nleeting one of the clear objectives in the Corporate Plan 2012 to 2016. • The creation of \Vorkshop and storage space in the Hen1p Houses, part of the historic ropery complex. We have also created ne\v display opportunities for the public to vie\v 111odern rope 1naking equipn1ent in action, nloved from inaccessible areas to ne,vly created spaces in the con1plex. • In1proving rental levels fron1 our substantial comn1ercial tenant base, with re1narkably fe\v occupancy changes. • Managing a residential estate of 115 ho1nes in harn1ony \Vith our visitor operations • Developn1ent of our filn1 location activities to produce the highest ever annual financial contribution to our core charitable objectives, as \Ve11 as providing significant promotional opportunities.
Our educational activities have also n1aintained their up"vard n101nentun1, \Vith visitor nu111bers gro\ving to their highest level ever at just below 170,000 during 2013/14. The learning team was rewarded for the quality of its programi11es, its ingenuity and success in attracting schools and educational groups through the a\vard of a prestigious Sandford A \vard for education.
The use of the te1nporary exhibition ga11ery in No 1 Sn1ithery has again been successful in attracting ne\v audiences, with its range of themes from children's literature (including Julia Donaldson's stories), Scott and Shackleton's Antarctic adventures and a Lavery art exhibition.
Our learning progranu11es continue to focus on n1aintaining existing audiences, \\'hilst at the san1e tin1e attracting ne\v audiences through creative progra1nntlng, often filling gaps in established n1arkets.
Our Wooden Walls Gallery told the story of wooden ship building at Chatham. After many years' service the Gallery under,vent a n1ajor refurbishn1ent in 2013. Ne\v technology \vas used to retell the story, based on research undertaken during the intervening period. As a n1uch loved ath·action, the change to Wooden Walls needed very careful pla1u1ing so as to n1aintain the charn1 of the original, but at the san1e tin1e to n1eet the expectations of 21st century visitors. Opened by the Minister for Sport and Tourism, Hugh Robertson MP in May 2013 and re-titled "Hearts of Oak", the ne\v exhibition has been n1uch acclain1ed, and has helped to support the gro\vth in visitor nu1nbers and visitor satisfaction. This is a further den1onsh·ation of the success of our 111useu111 reorganisation and rene\val strategy. It justifies continued invesh11ent in that strategy, the next, and entirely integrated, phase of \Vhich is the Conu11and of the Oceans project, to be delivered in the next three years.
4 The Chatham Historic Dockyard Trust Trustees' am1ual report incorporating the strategic report (continued) For the year ended 31 March 2014
Sinlilarly our two 1najor fundraising events - the Easter Steam and Transport Festival and Autunu1 Salute to the 40s event - ath·acted record visitor incon1e, excellent profitability, ne\v audiences and n1edia profile.
There \Vere no significant anniversary events in the year but we were delighted to welcome our nelv Patron, HRH The Prince of Wales, accompanied by HRH The Duchess of Cornwall, to the Historic Dockyard in July to see how n1uch the Trust had achieved since his last visit in 2004. The Prince of Wales was able to gain a greater understanding of our next 111ajor project, Conunand of the Oceans, in which he has shovvn a keen interest.
We are con1n1itted to ever in1proving standards in our offer to visitors, through both inveshnent in training staff and constantly in1proved facilities. A close appreciation of visitor and potential visitor needs and aspirations is key to this conu11itn1ent. Visitor surveying, peer group benclunarking and close n1onitoring of external review sites are all utilised to good effect. The a\vard of our second consecutive Trip Advisor Certificate of ExceUence is testan1ent to the quality of the experience enjoyed by our visitors.
The Trust's fundraising campaign for Conunand of the Oceans achieved its £8.75m target by January 2014, with the confirmation of a £4.75m grant from the Heritage Lottery Fund ("HLF"). A complex land and rights related agreen1ent \Vith the Hoines and Co1nmunities Agency ("HCA") added £3111 to the target fund. This agreen1ent relates to the Interface Land, \vhich for1ns part of the Cominand of the Oceans site, and facilitates the developn1ent of adjoining land O\Vned by the HCA. A range of generous support fron1 grant n1aking trusts and foundations, individuals and corporate supporters closed the ren1aining gap. The grant of planning and scheduled ancient 1nonun1ent consents early in the ne\v year n1eant that \Vork on the an1bitious project could start before the fir1ancial year end. Command of the Oceans is due to open in 2016.
Great progress has therefore been n1ade in achieving the Trust's charitable objectives, both in their broad sense and specifically in relation to the Corporate Plan 2012/16. The final major project outstanding relates to the re-use of the Fitted Rigging House, a 23,000sq ft per floor, four floor building. That project is now becoming the focus of attention as the next phase of progress once Conu11and of the Oceans is con1pleted. An initial feasibility analysis is under way, and discussions \vith potential partners have already taken place. The pace of progress is calculated to ensure that our capacity and resources are not over-stretched as \Ve deliver the Con1mand of the Oceans project, and to rnaintain the confidence of our stakeholders in our progress. We are also keen to ensure that the balance of site uses is not compromised by the scale of this project.
The ongoing application of our national conu11tulications sh·ategy continues to pay real dividends. The reputation of the Trust's \vork, its progranu11es and n1ost in1portantly the Historic Dockyard itself has gro\\'n through exceptional coverage, \\1hich has included exposure on national BBC through hvo episodes of Antiques Roadsho\v, and nun1erous other national, regional and local n1edia. Our con1n1u11ications sh·ategy has been carefully 1nanaged by t11e in-house tea1n, \Vho have also developed our ne\V n1edia initiative,. using Facebook and T\vitter very effectively.
It has been a long held aspiration of the Trust that the Historic Dockyard should be formally recognised for its historic sig11ificance as part of the \Vider 11 Chatha1n Dockyard and its Defences" World Heritage Site. Having been designated a Tentative Site for fifteen years it is disappointing to report that Governn1ent's expert panel has concluded that the application for World Heritage status should not be pursued. The grounds given for this decision relate to the irreparable damage to setting caused by the modern development beyond the northern boundary of the site. That developn1ent in fact took place rnany years ago.
5 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
Although disappointing and perhaps puzzling, this decision does not alter the fact, which is confirmed by the report, that the Historic Dockyard and its defences are internationally significant heritage sites. The work of the last fifteen years has created a strategic approach to preservation, interpretation and the role of heritage in the regeneration of Med\vay that has attracted considerable invesh11ent, to the benefit of residents and visitors alike. It is encouraging that all parties involved in the n1anage1nent of the site, i11cluding Med\vay Council, have agreed to contii1ue to \vork together in the future and to ensure that the Chathan1 Dockyard and Defences area features pron1inently in the future destination n1anage1nent and regeneration plans for the area. The Trust continues to consider the potential of a sn1aller World Heritage Site bid relating sin1ply to our eighty acre site, \Vhich is uniquely con1plete and \Vell protected.
Subsidiaries
The Trust has a total of four \vholly O\Vned subsidiary con1panies through \vhich it 1nanages various trading activities. These activities are not all directly associated \Vith the Trust's charitable objectives, but are undertaken to further those objectives through funds generated and passed up to the parent charity.
These con1panies are:
• Master Ropemakers (Trading) Ltd. This company operates the historic ropewalk, producing rope for sale on the con1mercial 1narket. Its potential to generate profits in a highly cornpetitive 1narket is lin1ited by its need to use traditional methods and equipn1ent, 'vhich are also highly labour intensive con1pared with n1odern co1npetition, often overseas. Its operation aiins to break even as a ntlnin1u1n.
In1portantly, the con1pany is also required to provide a den1onstration and educational resource for the visitors to the Historic Dockyard. The spectacular process is recognised as being one of the site's real star features and is hugely popular 'vith visitors and the n1edia alike. In n1eeting this public interest, ho\vever, the co1npany' s efficiency is further han1pered by the need to operate at multiple set tin1es during the day, and in a vie\ver friendly way. As a result the Trust offers a service charge to the company to recognise the hidden cost of providing this service to support the Trust's education and preservation objectives.
The co1npany has an independent board con1prising Trustees, officers of the Trust and independent experts.
• Chathan1 Historic Dockyard (Trading) Ltd. This trading con1pany undertakes retail and catering services to visitors as \Vell as providing a business, \Vedding and hospitality service by re-using Conu11issioner' s House. Built in 1704, Co1n1nissioner' s House is Britain's oldest intact Royal Naval building. Each unit of the business is designed to operate profitably, with profits passed up to the Trust. The company has an independent board con1prising officers of the Trust and an independent expert.
• Historic Dockyard Property Ltd (HDPL). HDPL is the Trust's residential property company. It owns the freehold of 112 of the 115 ho1nes on the residential estate. It 1nanages this estate, providing services to the tenants in accordance \vith their leases, and in return for payn1ent of a service charge. It is n1anaged by officers of the Trust, and has an independent board co1nprising Trustees and officers of the Trust.
• Historic Dockyard Property {2005) Ltd (HDP 2005). HDP 2005 holds the long leasehold of the Trust's land to the north of the site, known as the Interface Land. This land is bounded by development sites owned by the HCA. The majority of this land is to be improved through the Command of the Oceans project, in which the HCA has
6 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
invested £3111 in return for the right to purchase a part of the land after develop1nent as a car park, rights of ¥.'ay and easen1ents, and the benefit of public realn1 \vorks. These rights are designed to facilitate develop1nent and sale of the HCA' s adjoining sites. }lDP 2005' s land \Vill benefit fro1n substantial investn1ent in the n1aintenance of in1portant scheduled ancient n1onun1ents, and in substantial environn1ental in1proven1ents that \Vill create an appropriate arrival, to and setting for, the Historic Dockyard. Some s1nall potential developn1ent space re1nains for appropriate future use.
STRATEGIC REPORT
Achieven1ents
In n1any respects 2013/14 was by far the n1ost successful year in the Trust's histo1'Y· Visitor numbers, self generated incon1e, inveshnent in maintenance and fundraising were all at record levels, nteaning that our investn1ent in core charitable purposes was n1aximised. The revised arrange1nents for the Interface Land have secured an appropriate fuhtre for the in1portaut scheduled ancient n1onun1ents sited there, and have provided the opporhtnity to create a fitting arrival to this wonderful site of national significance. In addition, in1ple1nentation of the nelv business strategy for Master Ropemakers (Trading) Ltd has shown encouraging signs of success.
More does, ho,vever, ren1ain to be achieved if we are to n1eet our stated aint of financial sufficiency at an a1u1ual revenue level. The Corporate Plan 2012/16 highlights actions necessary to achieve this goal. Good progress is being n1ade. Co1nn1and of the Oceans is fully funded and should, when opened in 2016, boost visitor nu1nbers and incon1e, while the Sail and Colour Loft is now fully re-used.
Meeting our charitable and significant strategic objectives (as articulated in the Corporate Plan 2012 to 2016)
Work in Not Objective Achieved* Comn1ent Progress Achieved • The year sa'v our highest ever visitor nun1bers at 170,000. There is ho,vever ahvays 1nore to do! Education ./ • We have invested heavily in interpretation in ships and galleries • We have funded our n1ajor ne\v Conm1and of the Oceans project • Vl/e invested n1ore in self-funded n1aintenance than ever before and raised substantial funding through Conu11and of the Oceans project to invest in Preservation ./ Scheduled Monun1ent 'vorks. lfol\'ever, \Ve still have an a1u1ual revenue gap preventing us investing fully in our ntaintenance obligations • His Royal Highness the Prince of Wales has graciously agreed to be our Patron and visited site 'vith the Duchess of Reputation ./ Cornwall in July. • Our National 1nedia strategy continues to bear fruit through considerable national print and broadcast 1nedia coverage
7 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
Meeting our charitable and significant strategic objectives (as articulated in the Corporate Plan 2012 to 2016)
Work in Not Objective Achieved* Con11nent Progress Achieved • The DCMS technical conu11.ittee has concluded that pre~existing 111odern Achieving World develop1nents beyond the northern Heritage Site Status ./ boundary of our site are so intrusive as they underntlne the universal value of the wider site. The process has stalled.
Meeting our operating objectives - Property Work in Not Objective Achieved* Comment Progress Achieved Bring the Sail and University of Kent leases utilise all Colour Loft into full, ./ • ren1aining space available productive use Maintain a stable con1n1ercial tenant and ./ • Very low rate of occupancy changes rental base Utilise the \Vider site environ1uent Most financially successful year ever productively - film ./ • location use Maintain the estate The highest self-generated investn1ent according to the • ever but. .. still below the long term priorities of the planned ./ average required. maintenance schedule
Meeting our operating objectives - Education Work in Not Objective Achieved* Con1n1ent Progress Achieved Provide high quality Awarded second Sandford Award for the forn1al education ./ • quality of services provided. standards Continue to increase the volu1ne of for1nal ./ • Volun1es are at a record level. education visits Continue to grow • The ten1porary exhibition progra1nn1e visitor ntnnbers and ./ continues to drive volun1e and audience audiences diversity Good progress has been n1ade 'vith Continue to in1prove • significant investment in the ropery interpretation and galleries, on HMS Garmet and through the itnplen1ent the n1useum ./ completion of funding for Command of the reorganisation strategy Oceans
8 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
Meeting our operating objectives - Education Work in Not Objective Achieved* Con1ment Progress Achieved The confirmation of £4.75m from HLF Raise £8.75m for • together with £3m from the HCA and a Connuand of the ./ further £1111 fron1 Trust and Oceans Foundations Raise progratnnte Good progress with strong funding for education • relationships for1ned and al\vays n1ore and n1useu111 projects ./ to do. £60,000 raised for education and front corporate and charitable sources other progra1nn1es
Trading and other fundraising activities - sun1n1ary of subsidiary perforn1ance - events Work in Not Objective Achieved Com1nent Progress Achieved Generate significant funding front two events At 111ore than £60,000 our two events during the year to ./ • were the n1ost profitable ever support charitable purposes • Retail operations were the n1ost profitable ever. Catering saw the highest turnover but reduced profitability. In1ple1nentation of the business Trading Activity ./ i111proven1ent strategy for the ropery is progressing well. The operation of Co1nnlissioner's House for weddings and corporate use \Vas less successful but did break even.
9 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 Ma rch 2014
Visitor Numbers and Income
The Sustainable growth in our visitor numbers and income is demonsh'ated below. Visitor numbers of 168,000 and inC'OmP. from rirlmissions of £1 .1 m wPrP both rPcorrls in 201 ~/2014 . Visitor Numbers 2005 to 2014 200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
2005 2006 2007 2008 2009 2010* 2011 2012 2013 2014
D individual visits • Events & corporate D Sd1001s visits D Organised groups
Visitor Income 2005 to 2014 (£'000) 1,200
1, 000
800
600
400
200
2005 2006 2007 2008 2009 2010* 2011 2012 2013 2014
D Individual Income • Events Income D Sd10ols Income D Groups Income
10 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
Property Income 2005 to 2014 Property Income (£'000) 2,500 The reuse of our buildings is generating increasing, 2,CXXJ sustainable and non • Development Fund Rent cyd ical revenue. At • Jdners Shop Income 1,500 over £2111in 201 3/14 • Filming the revenue has D Utilities Redrnrged increased by 69% 1,CXXJ D Car Parking since 2005 • No.1 Smithe1y Rent a Rental Income SOO
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total Operating Income
Unrestricted income from all sources has grown to approximately £5m per year. Reliance on grant funding as a proportion of the total is reducing as we deliver our strategy of generating income from our own actions to reduce reliance on grant streams.
Total Income 2005 to 2014 (£'000) 6,000
5,000
4,000 Other grants & donations Renaissance/ ACE
3,000 D Trading & inveshnent income D Ropemaking • Visitor income 2,000 D Property income
1,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
11 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
Maintenance Expenditure
A key performance indicator for the Trust is its ability to fund its maintenance liabilities defined in our 25 year maintenance plan. The growth in the investment to the 2013/2014 level of £350,000 is demonstrated below. This s till remains significantly below the estimated annual requirement. Closing the gap is a key sh·ategic target.
Total Maintenance Spend 2005 to 2014 (£'000) 700 600 • • SOO • • • ~ ~ • 400 "' 300
200
100
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
_..,_Estimated required planned preventative maintenance and routine maintenance - Actual plaru1ed preventative maintenance -: Actual routine maintenance -+.-Total actual maintenance expenditure (red + green)
12 The Chatham Historic Dockyard Trust Trustees' aiu1ual report incorporating the sh·ategic report (continued) For the year ended 31 March 2014
Analysis of income - 2013/14
(£'000 Other grants & donations,£262, 5%
Trading & investment income,£880, 18%
Visitor income,£1,304 , 27%
Expenditure 2013/14 (£'000)
Insurances, £209 , 4 % Utilities,£337 , 7% Preservation & Administration& ~--~ Education, £2,335 , support, £560, 11 % 48%
Marketing / Events, £250 , 5% Ropemaki.ng,£421 , 9%
13 The Chatham Historic Dockyard Trust Trustees' aiu1ual report incorporating the strategic report (continued) For the year ended 31 March 2014
Fundraising
Throughout 2013/14, fundraising has been predon1inately focused on raising the necessary n1atched funding to support our Con11nand of the Oceans project. Working to our capital fundraising develop1nent strategy "\Ve have been successful in raising c.£8.75111 for this project thanks to the generous support of a range of supporters including the Heritage Lottery Fund, the Hon1es and Conununities Agency and a range of con1panies, charitable trusts and foundations including:
• AIM/Biffa Award NHLPS • Arts Council England • DCMS/Wolfson Museum and Galleries Improvement Fund • The Fidelity UK Foundation • The Foyle Foundation • The Garfield Weston Foundation • The Headley Trust • The Michael Uren Foundation
We have also been fortunate enough to receive support for a range of other projects and progranu11es frorn a nu1nber of co1npanies, charitable trusts and foundations including:
• Arts Council England • BAE Systems (Rochester) • The Bedgebury Foundation • Bell's Glass and Glazing • Dobbies Garden World • John Swire 1989 Charitable Trust • Marsh Christian Trust • Peel Ports • Southern Water
We \vould also like to thank all the individual supporters, con1panies and organisations that have donated to support The Historic Dockyard Chatha1n over this period including those generous enough to leave gifts in the for1n of a legacy. Their support is highly valued and makes a huge difference to supporting the valuable work we do. We are actively promoting Gift Aid to all our individual donors and currently have a good take up of this scheme adding 25% extra value to eligible donations. Vl/e \vould also like to thank the Deparhnent for Culture, Media and Sport for their continued support and valuable in-kind support fro1n Med\vay Council.
Review of Financial Position
Financial 111a11age111e11t policies
Managen1ent of the finances of the Trust is the im1nediate responsibility of the Chief Financial Officer. He prepares detailed 1nonthly financial and 1nanage1nent accounting inforn1ation for revie\v by the Chief Executive. A sun1n1ary of the financial position of the Trust and its subsidiaries is also presented for quarterly revie\v and approval to the Finance and General Purposes Co1n1nittee of the Board of Trustees, and thence to the Board itself.
14 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
ResenJes policy
The policy of the Trust is to maintain a general reserve of at least £1,250,000. At 31st March 2014 this reserve stood at £1,445,930. The Trust maintains a designated reserve of up to £578,000 designated specifically for bringing into use buildings that are capable of generating income likely to help deliver the Trust's core objectives. After drawing on the development fund, the total general reserves at 31 March 2014 stood at £1,536.474.
Invest111e11t policy
The Trust's current inveshnent policy is risk averse. Consequently any surplus cash reserves, over and above those required to fund working capital, are invested in short term fixed interest bearing cash deposits. The quantum of these deposits is reviewed quarterly by the Finance and General Purposes Committee of the Board of Trustees, for subsequent approval by the Board itself.
Risks
Risk management is an essential element of good governance. The Trust's systems of review recognise this, \vith the Board of Trustees and the Executive involved at both strategic, management and operational levels. The Trustees undertake an overall review of strategic risks at least twice in each year and confirm that the major risks to which the Trust is exposed, as identified by the trustees, have been reviewed and systems or procedures have been established to manage those risks. The principal risks identified by the Trustees are summarised below:
• Fluctuations in property and/ or visitor income. The Trust Executive reviews trading perfor1nance on a weekly and monthly basis to ensure that any fluctuations in income which may result in the Trust's failing to meet its financial targets are identified early. The budget identifies measures to mitigate this risk and is again reviewed monthly and actions identified to offset any shortfall in income. Regular financial reports are citculated to members of the Trustees and reviewed formally by Finance & General Purposes Committee and the Board on a quarterly basis.
• Occurrence of significant physical damage to the property, historic character or fabric of the Historic Dockyard
• Un.foreseen maintenance costs and other cast pressures including increases in utility costs. As part of its budgetary and business planning process, the Trust identifies and prioritises maintenance tasks and makes allowance within the budget for planned preventive maintenance. This maintenance schedule is fully itemised so that priorities may be adjusted as required to meet the funds available. Where performance is better than budget this results in our bringing forward n1aintenance work where this is appropriate. For the longer term, the Trust has set up a designated fund to provide income to support the maintenance and conservation of the estate and the Trust's collections.
• Loss of DCMS funding. The Trust will continue to make every effort to ensure that its activities are carried out in accordance with museum best practice. In this respect the Trust n1eets government criteria for the above funding and regular review ensures that this remains the case. In the event that govermnent priorities change and fundil1g is withdrawn, certain activities inay have to cease and the Trustees has identified exit strategies accordingly.
• Loss of key personnel. The Trust has a strong management tean1 with all senior n1anagers possessing a good understanding of the more strategic and material issues affecting the Trust's future operation. However, the loss of a key senior executive is likely to have a material effect on the Trust's operations in the short term unless an experienced and very effective replacement is appointed within a few months.
15 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
Looking Forward
This revie\v has den1onsh·ated further progress in achieving the objectives laid do\vn in the Corporate Plan 2012 to 2016. This 'vill continue to guide our endeavours in the years to con1e.
Our top priority \vill be to achieve all of the outco1nes resulting fro1n the delivery of our n1ajor Conu11and of the Oceans project over the next t\.vo years. The investn1ent in the restoration of our n1onun1ents, infrastructure, age of sail galleries and visitor facilities \\•ill be transforn1ational, not only for visitors to The Historic Dockyard, Chatha111 but also those \Vishing to find out n1ore about the \vider Dockyard defences that n1ark us out as internationally significant. Innovative progran11nes related to the ne'v develop1nents \vill be developed and in1plen1ented to ensure the n1axiinun1 engagen1ent and in1pact is achieved fron1 the investn1ent. We intend both the project delivery and the outcon1es to be exe1nplary.
Our conm1unity of "business" tenants continue to contribute hugely to the local econon1y, to the vibrancy of this place and to our o\vn ability to n1eet our preservation and education objectives through rents received. We will continue to nurture this conm1unity and to grow it further. We \vell recognise the pressures on the site that this strategy creates in terms of issues such as parking and traffic and \Ve are einbarking on a revie'v of site usages and ren1aining building potential to establish an appropriate developn1ent strategy that \Vill increase our incon1e \vhile n1aintaining the balance and harn1ony necessary in running a successful and sustainable estate. The potential use of our ren1aining Covered Slip and the Fitted Rigging House are critical considerations.
Although very develop1nentally focussed the Trust also recogi1ises the absolute need to continue to invest in, and constantly in1prove, all areas of its operation to n1eet its t\vo charitable purposes. By planning, operating good inanagen1ent systen1s, n101tltoring perforn1ance against objectives and investing proportionately it is our intention to continue to in1prove everything \Ve do to the benefit of all current and future users of this place. We also ren1ain totally con1mitted to \vorking in "partnerships of purpose" \vhere by 'vorking together den1onsh·able value is added.
Volunteers, staff and our residential conu11unity are also in1portant parts of the ntlx that rnakes 'fhe Historic Dockyard so special. We \Vill continue to invest in the develop1nent of the staff and volunteer groups and support our residential estate through good n1anagen1ent.
With hvo years of the current corporate plan ren1aining \Ve are already engaged in the research and planning necessary to undertake a tin1ely review. There is little doubt that the intention 'vill ren1ain to achieve the n1ove to annual revenue self-sufficiency having funded the education and preservation (1naintenance) costs that face us. There ren1ains a distance to h·avel to achieve this but the 2013/14 results have de1nonstrated just ho\v far we have con1e and given great confidence that \Ve \Vill reach our goal.
(End of strategic report)
Good Governance
As a charity \Ve recognise our obligation to 1naintain effective governance in line 'vith current regulation and best practice.
16 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
The 1'rust' s ain1 is to ensure, as far as possible, that the Board of Trustees is representative of the co1nn1unity in tern1s of gender, ethnicity and age, \vhilst recognising that skills, experience and con1111ihnent are equally in1portant. The Trustees are appointed as follo\vs:
• Eight inen1bers are nontlnated by The Chatha1n Historic Dockyard Trust • 'fwo n1en1bers are no1ninated by Medway Council • One inen1ber acting as an independent Chairn1an is appointed by the Trustees
Men1bers of the Board \Vho served during the year are listed on page 1. Trustees are recruited based on an assessn1ent of the n1ix of skills required for the Trustees effectively to control the operations of the Trust. Candidates are interviewed by a selection panel of the Board and on appoinhnent all trustees receive forn1al induction training.
In the interests of effective governance, especially in areas of critical specialist in1portance, the Trustees have appointed dedicated con1mittees, con1prising selected Trustees and co-opted specialists. Con1nlittee n1eetings are attended by relevant officers of the Trust. At present con1nlittees have been forn1ed to cover hun1an resources and re1nuneration, audit issues and finance and general purposes. A co1nn1ittee of the Trustees has also been formed to oversee the Conunand of the Oceans project. Conu1littees have been given linlited delegated authority by the Trustees, to \Vhon1 all their acts and proceedings are reported.
At the start of the year, \Ve were very pleased to be able to appoint t\vo ne\v Trustees, Sandra Matthe\vs-Marsh (communications) and Laura Nesfield (property), who have already ably filled vacancies on The Board of Trustees occurring at the end of the previous year.
One 'frustee, Brian Stevens, retired in the year, having served for thirteen years, throughout \vhich period he inade a valuable contribution to the affairs of the Trust. His participation will be greatly missed. We are fortunate in having appointed as his successor Murray l-Iallan1, an ackno\vledged legal expert, especially in the la\\1 relating to charities.
We 'velcon1e all three of our ne\v Trustees, and look for,vard to \Vorking \vith then1 in the affairs of the Trust.
Governance and internal control The systeins of internal control are designed to provide reasonable assurance against n1aterial nlisstaten1ent or loss. They include: • a strategic plan and an aimual budget approved by the Trustees; • regular consideration by the Trustees of financial results, variance fron1 budgets, and non-financial perforn1ance indicators; • delegation of authority and segregation of duties; and • identification and n1anage1nent of risks.
The Trustees have revie\ved the recent Code on Good Governance for the Voluntary and Conm1unity Sector and consider that the Trust is fully compliant with this Code. The Trustees have also had regard to the Charity Co111nlission's guidance on public benefit.
Management and Staff
The Trust is con1nlitted to equality in the \vork place, and to invesh11ent in its staff through the provision of training, appropriate terms and conditions of en1ploy1nent and good \vorkplace enviro1unents. We revie\v our n1anagen1ent
17 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
and support structures regularly, benchinarking then1 against other organisations both \Vithin and outside our direct sector of activity.
1'he Trust has policies in place for health and safety, training, equal opportunities and n1edia use. A con1prehensive staff handbook is issued to all ne\v staff during inductio11, and is available through our intranet.
The diversity of activities undertaken by the Trust requires invesh11ent in expertise vvhich can be supported by external ad visors \vhen necessary. Our trustee and directorial groups co1nprise relevant senior experience to ensure that there is the appropriate scrutiny of en1ployn1ent practices and policies.
The Trust is forhmate to employ a group of knowledgeable and suitably experienced staff and has a remarkably low turnover. Whilst this is an indication of good en1ployn1eat practice, it can be a barrier to younger people joining and gaining experience. To con1bat this \Ve have active progranunes of h·aineeship, \York experience and internships. Where possible those taking part in these are given the opportunity to n1ove into en1ployn1ent \Vith us. SinUlarly, vve encourage progression \Vi thin the organisation.
Our formal staff appraisal systems are well established and operate at all levels of the organisation. The Re1nuneration Conunittee, a forn1al conu1tittee of the Trust Board, considers senior staff perfor1nance and the Chief Executive 1noderates all other appraisals. The appraisal systen1 is linked directly to a discretionary Perfor111ance Related Pay (PRP) system which is again reviewed by the Remuneration Committee and ultimately the Trust Board.
Volunteers play a n1ajor part in the life of the Historic Dockyard. There are i11ore than 220 active volunteers providing invaluable support to the Trust and its objectives. In total they contribute 35,000 hours, equivalent to 22 full time staff across a range of disciplines and areas of interest. Volunteers are broadly affiliated to five groups:
• Dockyard Railway • Chatham Dockyard Historical Society - a separately constituted body • The Chathan1 Dockyard Volunteer Service - a separately constituted body that provides a range of services according to need and interest • The ship and heavy engineering group • The RNLI volunteers - managed by the RNLI to care for their historic boat collection
In addition \Ve have a sn1all nu1nber of 1nore independent volunteers "\Vorking in support of collections, research and activities such as filn1 location services. These are often related to experience, to assist in career developn1ent, or to specific interests.
The scale of our volunteer operations and their place "\\'ithin our co1n1nunity engagen1ent strategy has led us to reassess the n1anagen1ent need. A ne"\\' part tin1e post has therefore been specifically designed to in1prove our recruih11ent, 111anagen1ent and comn1unication "\vith volunteers. 1'his post can1e into effect on 1st April 2014.
Staten1ent of Responsibilities of the Trustees
The trustees ("\\1ho are also directors of the charitable con1pany for the purposes of con1pany la"\v) are responsible for preparing the Trustees' Report (incorporating the Strategic Report), the report of the Trustees and the financial statements in accordance "\Vith applicable la"\\' and regulations.
Co1npany Ja,v requires the trustees to prepare financial staten1ents for each financial year in accordance 'vith United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
18 The Chatham Historic Dockyard Trust Trustees' annual report incorporating the strategic report (continued) For the year ended 31 March 2014
Under coinpany la\V the trustees n1ust not approve the financial state1nents unless they are satisfied that they give a true and fair vie\V of the state of affairs of the charitable co1npany and the group and of the inconling resources and application of resources, including the incon1e and expenditure, of the charitable con1pany / group for that period.
In preparing these financial staten1ents, the trustees are required to: • select suitable accounting policies and then apply then1 consistently; • observe the methods and principles in the Charities SORP; • 1nake judgen1ents and estin1ates that are reasonable and prudent; • state 'vhether applicable accounting standards have been follo,ved, subject to any n1aterial departures disclosed and explained in the financial state1nents; and • prepare the financial staten1ents on the going concern basis unless it is inappropriate to presun1e that the Trust \Vill continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to sho\v and explain the charitable con1pany's transactions and disclose \vith reasonable accuracy at any tin1e the financial positio11 of the charitable con1pany and enable then1 to ensure that the financial staten1ents con1ply \vith the Con1panies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Provision of infor1nation to the auditor
In accordance \Vith con1pany la\vI as TrusteesI we certify that:
• So far as \Ve are a\vareI there is no relevant audit inforn1ation of \vhich the con1panyI s auditor is unaware; and • As the Trustees of the charitable company we have taken all the steps that we ought to have taken in order to n1ake ourselves a\vare of that infor1nation and to establish that the con1pany' s auditor is aware of that inforn1ation.
Auditor In accordance with Section 485 of the Companies Act 2006, a resolution proposing that Nexia Smith & Williamson be reappointed as auditor of the company will be put to the Ammal General Meeting.
This report was approved by the Trustees on 24th September 2014.
Andre~A Co1npany Secretary
The Historic Dockyard Chatham KentME44TE
19 The Chatham Historic Dockyard Trust Nexia Smith &Williamson
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF THE CHATHAM HISTORIC DOCKYARD TRUST
We have audited the financial statements of The Chatham Historic Dockyard Trust for the year ended 31March2014 \Vhich con1prise the Group Staten1ent of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flo\v Statement and the related notes 1 to 30. The financial reporting fran1e\vork that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is n1ade solely to the charitable con1pany's 111e1nbers as a body, in accordance 'vith Chapter 3 of Part 16 of the Con1panies Act 2006, and the charitable con1pany's trustees, as a body, in accordance \Vith Section 151 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that \Ve 1night state to the charitable co1npany's n1e1nbers and trustees those 111atters \Ve are required to state to then1 in an auditor's report and for no other purpose. To the fullest extent per1nitted by la\v, \Ve do not accept or assun1e responsibility to anyone other than the charitable con1pany and the charitable con1pany's 1nen1bers as a body and the charitable con1pany's trustees as a body, for our audit work, for this report, or for the opinions \Ve have for1ned.
Respective responsibilities of trustees and auditor
As explained n1ore fully in the Trustees' Responsibilities State1nent set out on pages 18 to 19, the trustees (\vho are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a h·ue and fair vie\V.
We have been appointed as auditor under the Companies Act 2006 and Section 151 of the Charities 2011 and report to you in accordance \Vith those Acts. Our responsibility is to audit and express an opinion on the financial staten1ents in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Financial Reporting Council's (FRC's) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial staten1ents is provided on the FRC's \vebsite at \V\V\V .frc.org. uk/ auditscopeukpriva te.
Opinion on financial staten1ents
In our opinion the financial staten1ents:
• give a true and fair view of the state of the group's and the parent charitable con1pany's affairs as at 31 March 2014 and of the total inconling resources of the parent charitable con1pany and its subsidiaries and the n1oven1ents in the total resources, including the incon1e and expenditure, of the group for the year then ended;
• have been properly prepared in accordance \vith United Kingdo1n Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
20 The Chatham Historic Dockyard Trust Nexia Smith & Williamson
Opinion on other n1atter prescribed by the Con1panies Act 2006
In our opinion the inforn1ation given in the Trustees' Annual Report, incorporating the Strategic Report, and in the Report of the Trustees for the financial year for \Vhich the financial staten1ents are prepared is consistent vvith the financial staternents.
Matters on which we are required to report by exception
We have nothing to report in respect of the follo,ving n1atters vvhere the Con1panies Act 2006 and the Charities Act 2011 require us to report to you i( in our opinion:
• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received front branches not visited by us; or
• the parent charitable conlpany financial statenlents are not in agreenlent \Vith the accounting records and returns; or
• certain disclosures of trustees' renluneration specified by law are not 1nade; or
• \Ve have not received all the infornlation and explanations \Ve require for our audit.
Stephen Drew Senior Statutory Auditor, for and on behalf of Nexia Smith & Williamson 25 Moorgate Chartered Accountants London Statutory Auditors EC2R6AY
Date: 1. 'Z. Ocl'\>'bf "1-01-t
21 The Chatham Historic Dockyard Trust Consolidated statement of financial activity For the year ended 31 March 2014
Unrestricted Restricted Total Total Notes funds Funds 2014 2013 £ £ £ £ Inco1uing resources Inco1ning resources from generated funds Voluntary incon1e 3 296,204 581,277 877,481 1,333,833 Activities for generating funds 4 2,088,706 2,088,706 1,849,660 Invesh11ent incon1e 5 17,105 17,105 26,875 Incon1ing resources fro1n charitable activities 6 2,841,194 2,841,194 2,597,014 Other inco1ning resources 7 912,751 912,751
Total incontlng resources 5,243,209 1,494,028 6,737,237 5,807,382 Resources expended Costs of generating funds Costs of generating voluntary incon1e 48,397 48,397 46,708 Fund raising trading: cost of goods sold and other costs 1,519,067 1,519,067 1,400,372 Investn1ent n1anagen1ent costs 14,687 14,687 14,171 Charitable activities 3,684,341 762,519 4,446,860 4,757,924 Governance costs 61,574 61,574 58,213
Total resources expended 9 5,328,066 762,519 6,090,585 6,277,388
Changes in resources before transfers and valuations (84,857) 731,509 646,652 (470,006) Transfers behveen funds 78,473 (78,473) Net n1oven1ent in funds 13, 21 (6,384) 653,036 646,652 (470,006)
Funds as at 1 April 2013 3,103,394 5,213,922 8,317,316 8,787,322
Funds as at 31 March 2014 21 3,097,010 5,866,958 8,963,968 8,317,316
All activities of the Trust continued throughout both periods and there are no recognised gains or losses other than those included in the consolidated state1nent of financial activities.
22 The Chatham Historic Dockyard Trust Consolidated balance sheet 31 March 2014
Notes 2014 2013 £ £
Fixed assets Tangible assets 14 6,105,839 6,359,017
Current assets Stocks 17 282,886 260,433 Debtors 18 639,709 600,571 Cash at bank and in hand 27,28 2,965,999 1,982,306
3,888,594 2,843,310
Creditors: a1nounts falling due 'vithin one year 19 (1,030,465) (885,011)
Net current assets 2,858,129 1,958,299
Total assets less current liabilities 8,963,968 8,317,316
Funds employed Resh·icted funds 21, 23 5,866,958 5,213,922 Designated funds 21,22 1,651,080 1,658,244 Unrestricted funds 21 1,445,930 1,445,150
8,963,968 8,317,316
The financial staten1ents on pages 22 to 40 \Vere approved and authorised for issue by the Trustees on z4thSepten1ber 2014. 4edA~f Admiral Sir Ian Garnett KCB Chairn1an
Company number 1804108
23 The Chatham Historic Dockyard Trust Balance sheet 31 March 2014
Notes 2014 2013 £ £
Fixed assets
Tangible assets 14 6,087,627 6,344,747 Investments in subsidiaries 16 101,100 101,100
6,188,727 6,445,847
Current assets Stocks 17 Debtors 18 979,079 796,987 Cash at bank and in hand 2,659,101 1,737,316
3,638,180 2,534,303
Creditors: ainounts falling due within one year 19 (890,074) (709,686)
Net current assets 2,748,106 1,824,617
Total assets less current liabilities 8,936,833 8,270,464
Funds employed
Restricted funds 21, 23 5,866,958 5,213,922 Designated funds 21, 22 1,733,968 1,701,240 Unrestricted funds 21 1,335,907 1,355,302
8,936,833 8,270,464
The financial statements on pages 22 to 40 were approved and authorised for issue by the Trustees on 24'" September
Admiral Sir Ian Garnett KCB Chairman
Company number 1804108
24 The Chatham Historic Dockyard Trust Consolidated cash flow statement For the year ended 31 March 2014
Notes 2014 2013 £ £
Net cash inflow/( outflow) from operating activities 26 148,811 (94,045)
Returns on investn1ents and servicing of finance Interest and dividends received 17,105 26,875
Capital expenditure and financial investment Purchase of tangible fixed assets (94,974) (15,387) Proceeds from the disposal of tangible fixed assets 912,751
817,777 (15,387)
Increase/( decrease) in funds in the year 983,693 (82,557)
Increase(decrease) in funds in the year is attributable to: Restricted funds 812,580 60,439 U1u·estricted funds 171,113 (142,996)
983,693 (82,557)
The reconciliation of net cash flo\v to n1oven1ent in net cash is shown in note 27 to the financial staten1ents.
25 The Chatham Historic Dockyard Trust Notes to the financial statements For the year ended 31 t-.1arch 2014
1 Status The Chatham Historic Dockyard Trust is an independent charitable trust formed for the purpose of preserving The Historic Dockyard for the public benefit and to pron1ote a \vide knovvledge of its archaeological, historical and architectural in1portance. It is a cotnpany Hntlted by guarantee, not having a share capital, \Vhich has a licence to dispense \Vith the \Vord "lin1ited" in its title.
The Trust \Vas set up in 1984 under the tern1s of a Memorandun1 of Understanding \vith the Deparh11ent of the Envirom11ent, under which a grant of £11,350,000 was received to be applied to the principal activities of the Trust. The Trust's constitution is set out in its Men1orand11111 and Articles of Association, as an1ended by Special Resolution on 16 December 2003.
2 Accounting policies a) Basis ofpreporntio11 The financial staten1ents are prepared under the historical cost convention and in accordance vvith applicable accounting standards and the Staten1ent of Reconu11ended Practice" Accounting and Reporting by Charities" dated March 2005 and updated in 2008.
The acquisition 111ethod of accounting has been used in preparing the group's consolidated financial state1nents. The financial staten1ents consolidate the accounts of The Chathan1 Historic Dockyard Trust and all of its subsidiary undertakings for the year ended 31 March 2014. The Trust has not presented a separate Statement of Financial Activities for its own results as permitted by Section 408 of the Companies Act 2006. b) Ad111issio11s Adnlissions con1prise of an1ounts received fron1 visitors to The Historic Dockyard, net of value added tax. These are recog1Used in line \Vith the tinling of the visits. c) Re11t and service charges Incon1e fro1n rent and service charges is included in the financial staten1ents at the point at \Vhich it becon1es due under the relevant lease or tenancy agreen1ent. d) Gro11ts 011d Do11otio11s Grants are included in the financial state1nents at the point at \vhich they becon1e due under the relevant grant agree1nent. Donations are included in the financial staten1ents \Vhen they are received. e) I11vest111e11t i11co111e Inveshnent inco1ne con1prises of interest received during the year. j) Catering inco111e Catering incon1e co1nprises a1nounts received fro1n visitors to the Historic Dockyard. This is recognised in line \vith the tinling of the service provided.
26 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31March2014 2 Accounting policies (continued) g) Expe11dit11re Expenditure is classified under the principal categories of costs of generating incon1e and other charitable expenditure in con1pliance \vith Staten1ent of Reconu11ended Practice /1 Accounting and Reporting by Charities" 2005 and best practice. Charitable expenditure con1prises of direct expenditure including direct staff costs attributable to the activity. \¥here costs cannot be directly attributed, they have been allocated to activities on a basis consistent \\•ith use of the resources and this is disclosed in the notes to the financial staten1ents under support costs. Governance costs are those incurred in coru1ection \vith con1pliance 'vith constitutional and statutory requiren1ents.
h) Mainfeuauce and capital 1vork Costs incurred on restoration projects of the Dockyard buildings are written off as incurred unless there is a future net econo1nic value. Where existing buildings are adapted for the Trust's use, including the refurbishn1ent of property for rental and the installation of exhibition and associated equipn1ent, the cost is capitalised and depreciation is then calculated in accordance \vith the depreciation policy.
i) Tangible fixed assets and depreciation Freehold land and buildings \Vere transferred to the Trust at the no1ninal sun1 of £1 at the thne of the Trust's formation. Tangible fixed assets represent the cost of additions since that date in accordance with the above policy.
Depreciation is calculated so as to write off the cost of all fixed assets other than freehold land and buildings by equal annual instahnents, on a straight line basis, over their expected useful lives. Freehold buildings are written off over a n1axin1un1 of 50 years.
The annual rates used are as follo\vs:
Con1puter equipn1ent 20% Exhibition equip1nent 7% / 20% Other fixtures and fittings 10% Plant and 1nachinery 10%/20% Motor vehicles 20%
J) Artefacts and exhibits As the value of historic artefacts, gifted to the charity, is considered to be incalculable, no amount is included for then1 in the balance sheet. Purchases of artefacts and exhibits are added to fixed assets at cost \vhere they are reasonably considered to have an econontlc or 1narket value. k) Heritage Assets It is the policy of the Trust not to capitalise its heritage assets as these are in effect inalienable, held in principle in perpetuity and are mostly irreplaceable. Any financially based valuation would be misleading to the value and significance of the 1naterial culture involved. The Trust has a clear duty to care for and n1ake available these assets for the enjoy1nent and education of the public (the Trust's core charitable objectives) as far as possible, co1nn1ensurate vvith the long tern1 care of these ite1ns. The highest possible standards of collection 1nanagen1ent are applied throughout the collections held.
/) Investments lnvestrnents in subsidiaries are stated at cost less provision for in1pairment in value.
27 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31March2014 2 Accounting policies (continued) 111) Pension costs Pension contributions to the Trust's Group Personal Pension schen1e are charged to the State1nent of Financial Activities in the period in \Vhich they are incurred.
n) Stocks l{ope stocks are stated at the lo\ver of cost and net realisable value. The costs of finished goods include an appropriate eletnent of labour and overhead costs less any required provisions. Other stocks are stated at the lo\ver of cost and net realisable value less any required provisions. o) Grants receivable Grants which are given \Vith donor i1nposed resh·ictions on the tinting of related expenditure are credited to restricted funds. Where these funds relate to capital expenditure related costs are added to fixed assets and depreciation is charged directly to restricted funds over the expected econontic life of those assets. p) Operating leases Operating lease rentals are charged to the State1nent of Financial Activities on a straight line basis over the period of the lease. q) Funds U1u·estricted funds comprise the accun1ulated surplus or deficit on the staten1ent of financial activities. They are allocated bet\veen designated funds and general funds \Vhich are available for use at the discretion of the Trustees in furtherance of the general objectives of the Trust.
Restricted funds are funds subject to specific restriction imposed by donors or by the nature of the appeal. The purpose and use of the restricted funds is set out in note 21 to the financial staten1ents.
28 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31 March 2014
3 Voluntary income 2014 2013 Grants £ £
Governn1ent - Departn1ent for Culture, Media & Sport 254,610 568,011
Other - Heritage Lottery Fund 68,015 58,150 -HCA 136,179 40,000 -BAE 5,000 10,000 - Rochester Bridge Trust 613 - Ernest Cook Trust 10,000 - Arts Council England (ACE) 269,737 321,133 - Michael Uren Foundation 100,000 - Garfield Weston 250,000 - Cole1nan' s 10,000 - Southern Water 17,986 10,000 - Others 7,837 5,777 Donations Co1npa1ties 1,800 Individuals - Other 18,117 48,349
877,481 1,333,833
4 Activities for generating funds 2014 2013 £ £
Retail - gift shop 198,597 170,168 Sales of rope products 386,490 314,814 Weddings & other functions 256,506 295,654 Catering 530,704 456,038 Residential property 111anage1nent 118,060 130,588 Rental 598,349 482,398
2,088,706 1,849,660
5 lnveshnent inco1ne 2014 2013 £ £
Fixed interest on cash deposits 17,105 26,875
29 The Chatham Historic Dockyard Trust Notes to the financial staten1ents (continued) For the year ended 31 March 2014
6 Incon1ing resources front charitable activities 2014 2013 £ £
Rent & service charges 1,373,579 1,382,532 Visitor ad1nissions 1,373,764 1,142,514 Museun1 & conservation services 93,851 71,968
2,841,194 2,597,014
7 Other incon1ing resources Other in coining resources represent the proceeds fron1 the grant of an easen1ent over the Trust's land. The n101Ues \Vere received by a subsidiary co1npany and were passed to the Trust as a resh·icted donation and are therefore sho,vn as restricted in the consolidated Staten1ent of Financial Activities.
8 Subsidiaries The Trust has four \Vhoily o\vned subsidiaries \Vhich are incorporated in the UK. Chatham Historic Dockyard (Trading) Limited manages retail and catering operations in the Historic Dockyard. Historic Dockyard Property Limited and Historic Dockyard Property (2005) Limited manage residential properties on the Dockyard site. Master Ropemakers (Trading) Limited produce and trade in rope products. All subsidiaries donate their profits to Chatham Historic Dockyard Trust.
Historic Chatham Master Historic Dockyard Historic Ropen1akers Dockyard Property Dockyard (Trading) Property (2005) (Trading) Total Total Limited Lin1ited Limited Limited 2014 2013 £ £ £ £ £ £ Incon1ing resources fron1 generated funds: Activities for generating funds 421,490 14,738 162,941 871,014 1,470,183 1,307,585 Inveshnent inco1ne 31 95 126 506 Other incorning resources 912,751 912,751
1'otal incon1ing resources 421,490 14,769 1,075,692 871,109 2,383,060 1,308,091
Resources expended Costs of generating funds Cost of goods sold & other costs 421,093 6,767 30,099 817,538 1,275,497 1,160,006 Total resources expended 421,093 6,767 30,099 817,538 1,275,497 1,160,006 Surplus 397 8,002 1,045,593 53,571 1,107,563 148,085 Amount gift aided to the Trust (397) (8,002) (1,045,593) (53,571) (1,107,563) (166,050) (Deficit) after gift aid (17,965) Funds as at 1 April 2013 7,035 1,000 100 39,817 47,952 65,917 Dividend to the Trust (19,717) (19,717) Funds as at 31 March 2014 7,035 1,000 100 20,100 28,235 47,952
30 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31 March 2014
9 Analysis of total resources expended Staff Total Total Costs Other Depreciation 2014 2013 £ £ £ £ £ Costs of generating funds: Costs of generating voluntary incon1e 38,135 10,262 48,397 46,708 Costs of goods sold and other costs 483,382 1,025,618 6,067 1,515,067 1,400,372 Investn1ent n1anage1nent costs 7,664 7,023 14,687 14,171
529,181 1,042,903 6,067 1,578,151 1,461,251 Charitable activities: Museun1 and education 902,149 885,876 127,562 1,915,587 2,276,370 Preservation and restoration 466,601 894,084 107,222 1,467,907 1,460,346 Advertising & pron1otion 64,722 96,483 161,205 119,465 Site security 179,412 5,836 185,248 203,936 Support costs 304,570 305,042 107,301 716,913 697,807
1,917,454 2,187,321 342,085 4,446,860 4,757,924
Governance costs 32,115 29,459 61,574 58,213
Total 2,478,750 3,259,683 348,152 6,086,585 6,277,388
Museun1 & education expenditure con1prises the cost of the n1aintenance and operation of the galleries and exhibits \vithin the Dockyard. Preservation and restoration con1prises the cost of repair, 111aintenance and restoration of the historic buildings and ships of the Dockyard and other 111aintenance. Site security co1nprises staff and other costs in respect of the provision of 24-hour security for the site for the benefit of the Trust, its tenants and residents.
10 Support costs
Support costs con1prise the Inanage1nent costs of the Trust and its charitable subsidiaries, and con1prise the Senior Executive and Finance functions (including Personnel and IT support). These costs 111ay be analysed as follo\vs:
Costs of Costs of generating charitable Governance Total Total funds activities costs 2014 2013 £ £ £ £ £
Staff costs & associated expenses 61,130 304,570 32,115 397,815 383,320 Travel, entertaining & si1nilar expenses 2,659 15,310 1,695 19,664 18,101 Professional fees 37,979 7,315 23,323 68,617 37,501 Insurances 6,199 201,918 438 208,555 204,540 Other overhead & office costs 16,535 80,499 7,503 104,537 105,249 Depreciation 107,301 107,301 104,303
Total 124,502 716,913 65,074 906,489 853,014
31 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31I\1arch2014 10 Support costs (continued)
The bases of apportiontnent utilised are as follo,vs: Staff costs and associated expenses Apportioned in accordance '''ith esti1nated tin1e spent on each activity 'fravel, entertaining & sintllar expenses Allocated in accordance \Vith usage Professional fees Allocated in accordance \.vith usage Other overhead & office costs Apportioned in accordance \Vith esti1nated usage Insurance costs Allocated in accordance \.vith the assets and activities insured
11 Wages and salaries 2014 2013 £ £
\"!ages and salaries 1,890,446 1,912,357 Social security costs 120,495 144,941 Pension schen1e 139,197 105,105
2,150,138 2,162,403
The nun1ber of employees \Vhose en10Iun1ents as defined for taxation purposes an1ounted to over £60,000 in the year "\Vas as follows: 2014 2013 Number Nu1nber £60,001 - £70,000 1 1 £70,001 - £80,000 £80,001 - £90,000 1 £90,001 - £100,000 1
Contributions in the year for the provision of money purchase benefits to higher paid employees totalled £47,992 (2013: £42,159).
The Chainnan of the Trustees is entitled to receive re1nuneration fron1 the Trust for services provided, as perntltted by the Me1norandun1 and Articles and approved by the Charity Corru1lission. The Chair1nan's e1nolu1nents for the year were £23,976 (2013: £24,534). No other Trustees received emoluments. Expenses reimbursed to 6 trustees in respect of the cost of attending meetings amounted to £2,332 (2013 - 6 trustees -£3,172).
No. of Persons employed: 2014 2013 Nun1ber Nu1nber Preservation and restoration 20 21 Museun1 & education 68 69 Ropemaking 7 6 Catering & retail 33 30 Support 7 7 135 133
32 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31 March 2014
12 Taxation 'fhe Chathan1 Historic Dockyard Trust is a registered charity and as such is exen1pt fron1 taxation on its incon1e and gains to the extent that they are app1ied to its charitable purposes. No corporation tax arises in any of the non charitable entities consolidated in to the accounts, Chatha1n Historic Dockyard (Trading) Lintited, Master Ropemakers (frading) Limited, Historic Dockyard Property Limited and Historic Dockyard Property (2005) Limited, because of their policy of paying all profits under Gift Aid to the charity each year.
13 Net 1nove1nent in funds 2014 2013 This is stated after charging/ (crediting): £ £
Depreciation of tangible fixed assets 348,152 341,271 Auditor's re1nuneration: - Audit (Company) 10,975 10,760 - Audit (Subsidiaries) 11,375 11,150 - Non audit services paid to con1panies associated \vith the auditors 6,170 6,050 Operatiug lease charges on plant and equipment: 9,602 10,051
14 Tangible fixed assets Freehold Fixtures, land and fittings and Plant and Group buildings equip1nent n1achinery Total £ £ £ £ Cost or valuation 1April2013 9,537,288 5,160,010 224,612 14,921,910 Additions 6,501 59,025 29,448 94,974 Disposals
31March2014 9,543,789 5,219,035 254,060 15,016,884
Depreciation 1 April 2013 3,563,802 4,788,304 210,787 8,562,893 Charge for year 246,710 90,944 10,498 348,152 Disposals
31 March 2014 3,810,512 4,879,248 221,285 8,911,045
Net book value 31 March 2014 5,733,277 339,787 32,775 6,105,839
31 March 2013 5,973,486 371,706 13,825 6,359,017
33 The Chatham Historic Dockyard Trust Notes to the financial staten1ents (continued) For the year ended 31 l'\1arch 2014
14 Tangible fixed assets (continued) The net book value at 31 March 2014 represents fixed assets used for:
Fixtures, Freehold fittings land and and Plant and Group buildings equipn1ent Machinery Total £ £ £ £ Charitable activities: Preservation and restoration 4,178,365 9,217 4,187,582 Museun1 and education 1,148,674 264,415 1,413,089 Ropen1aking 53,686 53,686 Support activities 351,553 58,159 23,558 433,270
Generating funds: 5,732,278 322,574 32,775 6,087,627 Activities for generating funds 999 17,213 18,212
Total 5,733,277 339,787 32,775 6,105,839
Trust Freehold Fixh1res, land and fittings and Plant and buildings equipn1ent 111achinery Total £ £ £ £ Cost or valuation 1 April 2013 9,521,465 5,065,630 224,612 14,811,707 Additions 6,501 49,021 29,448 84,970 Disposals
31March2014 9,527,966 5,114,651 254,060 14,896,677
Depreciation 1April2013 3,548,978 4,707,195 210,787 8,466,960 Charge for year 246,710 84,882 10,498 342,090 Disposals
31March2014 3,795,688 4,792,077 221,285 8,809,050
Net book value 31 March 2014 5,732,278 322,574 32,775 6,087,627
31 March 2013 5,972,487 358,435 13,825 6,344,747
Freehold land and buildings were transferred to the Trust at the nontlnal stun of £1 at the tin1e of the Trust's forn1ation. The capital expenditure above represents the cost of in1proven1ents and additions to the buildings, galleries and exhibits since that date.
34 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 311'1arch 2014
15 Heritage assets No value \Vas attributed to the assets transferred to the Trust on its creation as the cost of obtaining such valuations \Vould not be co1nn1ensurate \Vith the benefits to the users of the accounts and, in any event, given the uniqueness of many of the assets h·ansferred, a reliable valuation n1ay be in1possible to obtain.
The n1ajority of the property assets have been preserved through re-purposing. As such1 the properties are heritage assets, as either (1) the public has no access to properties which have been let third parties, or (2) the properties are used as operational properties (for exan1ple, the restaurant) rather than being held purely as heritage assets.
The heritage assets n1ainly con1prise the n1useun1 collections, art and photographs and the archives, 1vhich, as explained above, have no value attributed to thetn.
The assets include:
• over 100,000 items connected to the history of Chatham Dockyard and the Royal Navy at Chatham. They range from small items of personal ephemera - a dockyard matey' s old cigarette box - to HMS Cavalier, the Royal Navy's last Second World War desh·oyer.
• over 20,000 photographs dating from the very earliest years of photography, mainly depicting Chatham Dockyard at work and ships of the Royal Navy on the River Medway.
• over 150 works of art including oil painting, watercolours and prints. Their content ranges fron1 topographical views of the dockyard to portraits of naval personnel.
• 50 n1odels n1ainly of naval ships.
• over 100 n1achine tools all of \Vhich \Vere origi11a1ly used in the dockyard for shipbuilding and repair.
• over 100 iten1s of naval ordnance dating fron1 the seventeenth to the t\ventieth centuries and includes guns, torpedoes, n1ines and i11ortars.
• over 10,000 items in the archive collection, n1any docun1ents relate to naval and dockyard correspondence and to individuals' naval service.
Whilst the Trust \Vould like to acquire further assets to add to its collections, the n1ain focus of the Trust's efforts has been - and \Vill be for the foreseeable future - preserving the various buildings.
All assets have been catalogued in order that they can be properly n1anaged and the assets a stored in such a n1anner to prevent any deterioration in their condition and to ensure that they are physically secure. The collections are accessible to the public through the Trust's n1useun1 and those iten1 not on sho'v are inade accessible to researchers on request. The Trust is looking at the feasibility of digitising the archive in order that it can be n1ade n1ore \Videly available. The Trust does not expect to dispose of any of the collections.
35 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31r-..1arch2014
16 Inveshnents - shares in subsidiary con1panies 2014 2014 2013 2013 Trust £ £ £ £ Shareholder Share Shareholder Share Loan Capital Loan Capital
Cost at 31 March 2013 and 2014 100,000 1,100 100,000 1,100
The £100,000 shareholder loan to Master Ropemakers (Trading) Ltd is repayable in full in January 2020.
The subsidiary companies at 31 March 2014 were wholly owned and registered in England & Wales as follows:
Nan1e Class of share Activity held
Master Ropemakers (Trading) Limited Ordinary Non-traditional rope sales Chatham Historic Dockyard (Trading) Limited Ordinary Retail & catering Historic Dockyard Property Limited Ordinary Residential property rnanage1nent Historic Dockyard Property (2005) Limited Ordinary Property development
During the financial year ended 31 March 2010 The Chatham Historic Dockyard Trust issued a loan of £100,000 to Master Rope1nakers (Trading) Linlited a wholly o\vned subsidiary. The Trust n1aintains the right to convert the loan into share capital.
17 Stocks 2014 2013 Group Trust Group Trust £ £ £ £
Ra\v n1aterials and consun1ables 140,353 112,379 Goods for resale 142,533 148,054
282,886 260,433
18 Debtors 2014 2013 Group Trust Group Trust £ £ £ £
Trade debtors 247,213 108,639 325,751 166,254 Invesh11ent incon1e and grants receivable 152,103 152,103 25,366 25,366 Amount owed by subsidiary undertakings 503,690 362,731 Other debtors 48,049 40,414 59,407 59,408 Prepayn1ents and accrued incon1e 192,344 174,233 190,047 183,228
639,709 979,079 600,571 796,987
36 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31 March 2014 19 Creditors: an1ounts falling due "\Vithin one year 2014 2013 Group Trust Group Trust £ £ £ £
Trade creditors 383,441 335,313 291,322 241,866 Taxation and social security 32,440 32,440 29,673 29,673 Other creditors 147,048 136,465 223,661 122,062 Accruals and deferred incoine 467,536 385,856 340,355 316,085
1,030,465 890,074 885,011 709,686
20 Contingent liabilities
Within the Historic Dockyard there are 47 structures designated as Scheduled Ancient Monu1nents and 54 Listed Buildings. The Trust has a responsibility and liability to remedy any state of disrepair of the Listed Buildings under the Planning (Listed Buildings & Conservation Areas) Act 1990. Whilst the Trust continues to maintain these struch1res, it n1ay have insufficient funds to carry out the full scale repair of all the sh·uch1res should the appropriate notice be served upon the Trustees.
Certain grants received by the Trust for capital works \vithin the Historic Dockyard 1nay, under the provisions of the respective grant contracts, beco1ne repayable under certain circu1nstances. In the opinion of the Trustees such circu1nstances are unlikely to arise and accordingly no provision has been 111ade in the accounts.
If fixed assets are disposed of then under certain circu1nstances any related grant funding in respect of these properties may be repayable.
21 Funds employed
Group Unrestricted Group Resh·icted Designated General Total Total £ £ £ £ £
1April2013 5,213,922 1,658,244 1,445,150 3,103,394 8,317,316 Surplus/(deficit) for the year 731,509 (84,857) (84,857) 646,652 Transfer behveen funds (78,473) (7,164) 85,637 78,473 Funds at 31 March 2014 5,866,958 1,651,080 1,445,930 3,097,010 8,963,968
Trust U1u·estricted Trust Restricted Designated General Total Total £ £ £ £ £
1 April 2013 5,213,922 1,701,240 1,355,302 3,056,542 8,270,464 Surplus/(deficit) for the year 731,509 (65,140) (65,140) 666,369 Transfer bet\veen funds (78,473) 32,728 45,745 78,473 Funds at 31 March 2014 5,866,958 1,733,968 1,335,907 3,069,875 8,936,833
37 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31 March 2014 22 Designated Funds Maintenance and developn1ent Group Fixed Assets Fund Total £ £ £ 1,376,638 281,606 1,658,244 1April2013 Transfers 183,898 (191,062) (7,164) Funds at 31 March 2014 1,560,536 90,544 1,651,080
Represented by:
Tangible fixed assets 1,560,536 1,560,536 Cash at bank 90,544 90,544 1,560,536 90,544 1,651,080
Trust 1,419,634 281,606 1,701,240 1April2013 Transfers 223,790 (191,062) 32,728 Funds at 31 March 2014 1,643,424 90,544 1,733,968
Represented by:
Tangible fixed assets 1,542,324 1,542,324 Investments in subsidiaries 101,100 101,100 Cash at bank 90,544 90,544 Funds at 31 March 2014 1,643,424 90,544 1,733,968
The Maintenance and Develop1nent Fund represents sun1s set aside for planned preventive n1aintenance and building refurbishment expenditure in future periods. The Trust's policy is to invest any surplus on u1u·estricted funds generated each year back into the core activities of the Trust and to that end any surplus generated less unrestricted capital expenditure up to £100,000 will, for 2014 and future periods, be designated to fund pla1med preventive 1naintenance and building refurbishn1ent. The transfer in the year represents the expenditure of funds designated in previous years net of the 2014 h·ansfer into the fund. The an1ount transferred in the year is expected to be utilised in the coming year.
The fixed assets fund presents funds used to acquire fixed assets and V\'hich are therefore not available for funding the Trust's day to day activities.
38 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31March2014
23 Restricted funds Balance at Transfer Balance at 31 March lnco1ning Resources Behveen 31 March 2013 Resources Expended Funds 2014 Group and Trust £ £ £ £ £ Museum of the Royal Dockyard 420,288 (99,502) 320,786 joiners Shop 815,957 (17,094) 798,863 Wooden Walls 294,865 (9,705) (78,473) 206,687 Clocktower building 109,184 (27,297) 81,887 On-site transport & interpretation progran1111e 64,448 (6,688) 57,760 Ne\V visitor entranceI car park & shop 34,997 (11,667) 23,330 No 1 Smithery 3,101,084 (62,830) 3,038,254 Con1111and of the Oceans 290,838 1,275,249 (274,561) 1,291,526
Museun1 I~elocation 75,202 (49,321) 25,881
Arts Council England 218,779 (203,854) 14,925
Other small projects 7,059 7,059
5,213,922 1,494,028 (762,519) (78,473) 5,866,958
Restricted funds are presented by: Fixed assets 4,768,652 4,545,303 Debtors 25,366 87,122
Cash atbank 436,998 1,249,578
Creditors (17,094) (15,045)
5,213,922 5,866,958
The Conunand of the Oceans project is a n1ajor project \vhich involves the construction of a ne\V visitor entranceI a Discovery Centre and the preservation of the tilnbers fro1n HMS Na1nur. The project \Vill be developed over the next fevv years.
The Arts CounciC England grant \vas received to enhance the visitor experience to the n1useu1n.
Other restricted funds represent the donations and grants received in previous years to fund capital expenditure; the balance of the funds represents the net book value of the related assets and the resources expended represents the annual depreciation of the related assets.
24 Pension schen1es The Trust operates a group personal pension plan. The assets of the schen1e are held separately fron1 those of the Trust in independently adnlinistered funds. The pension cost charge represents contributions payable by the Trust to the funds and amounted to £121,111 (2013: £105,105).
25 Members Each n1en1ber of the Trust undertakes to contribute in the event of the Trust being \Vound upI a sun1 not exceeding £10.
At 31 March 2014 there were 13 members (2013: 13).
39 The Chatham Historic Dockyard Trust Notes to the financial statements (continued) For the year ended 31l\1arch2014 26 Reconciliation of net outgoing resources to net cash outflolv front operating activities 2014 2013 £ £
Net incon1ing / (outgoing) resources before transfers and revaluations 646,652 (470,006) Depreciation 348,152 341,271 (Increase) in stocks (22,453) (2,129) (Increase) in debtors (39,138) (3,926) Increase in creditors 145,454 67,620 Interest and dividends receivable (17,105) (26,875) Profit on disposal of fixed assets (912,751)
Net cash inflow/ (outflow) from operating activities 148,811 (94,045)
27 Analysis of changes in net funds At 1 April Moven1ent At31 March 2013 In Year 2014 £ £ £
Cash in hand and at bank 1,982,306 983,693 2,965,999
28 Reconciliation of net cash flolv to 1noven1ent in net funds 2014 2013 £ £
Increase/ (decrease) in cash in year 983,693 (82,557) Net funds at 1 April 2013 1,982,306 2,064,863
Net funds at 31 March 2014 2,965,999 1,982,306
29 Operating lease conuuihnents
At 31 March 2014 the Group was conunitted to making the following payments during the next year in respect of operating leases lVhich expire: Plant & Plant & Equipntent Equipment 2014 2013 £ £
Within one year 4,469 Within h\'O to five years 5,580 5,580
30 Related Party Transactions
The Trust and the group have taken advantage of the exemption conferred by FRS 8 that wholly owned subsidiary undertakings \Vhose voting rights are controlled \vithin the group need not disclose transactions \vith other group co1npanies.
40 The Chatham Historic Dockyard Trust