Trustees’ Annual Report 2019-2020

ANNUAL REPORT OF THE TRUSTEES AND COMMITTEE OF THE NAVAL REVIEW – 2018/19

Reference and Administrative Details.

1. The Charity is named ‘The Naval Review’. Its Charity Registration Number is 214610.

2. Its office is situated at Stoneleigh, 2D North Road, WELLS, Somerset, BA5 2TJ.

3. The Trustees of The Naval Review are:

Admiral Sir Mark Stanhope GCB OBE DL(Chairman).
Vice Admiral Sir Tim Laurence KCVO CB ADC.
Rear Admiral S P Williams CB CVO (rtd).
Rear Admiral S Ancona CBE (rtd)
Rear Admiral A P Burns OBE.
Captain D I Burns RN.
Captain A H Talbott RN (rtd).
Professor S W Haines Royal Navy (Appointed 22 February 2019)

4. The officers of the Charity are:

• Editor: Rear Admiral B N B Williams CBE (rtd)
• Assistant Editor: Commodore T R Harris RN (rtd)
• Book Reviews Editor:
Captain K Rowlands PhD RN (Resigned 31 March 2019).
Dr James Bosbotinis (Book Reviews Editor) (Appointed 31 March 2019).
• Secretary-Treasurer:
Commodore P W Herington MA RN (rtd) (Resigned 31 March 2019).
Mrs Emma Rowlands (Appointed 31 March 2019).

5. Other relevant organisations which support The Naval Review are:

• Banker:
The National Westminster Bank plc
South Kensington Station Branch
PO Box No. 592
18 Cromwell Place
London SW7 2LB

• Independent Examiner:
PN Independent Examinations
5 Nursery Road
Bedhampton
HAVANT
PO9 3BG

• Custodian Trustee:
Link Asset Services
6th Floor
65 Gresham Street
LONDON EC2V 7NQ2

Structure, Governance and Management

6. The Charity was established under the terms of a Trust Deed dated 19 September 1927 amended by a Deed of Variation dated 12 May 2016. This constitutes its governing document.

7. The number of Trustees is set by the Trust Deed at not less than three and not more than seven or such other number as the Trustees may think fit. They are recruited as required from among the longer-serving subscribers to The Naval Review and serve for an initial term of four years; they may be re-appointed for two further periods of four years. The Chairman is always a senior retired naval officer of Flag Rank.

8. The Trustees meet as required, but not less than twice a year. They take advice from a
committee drawn from subscribers of all ranks that primarily supports the Editor.

The committee consists of the following persons:

Commander V G Arden RN (Resigned 27 March 2018).
Commander S R Atkinson RN.
Lieutenant Commander G D Franklin RN.
Professor S W Haines (Resigned 27 November 2018 – now a Trustee)
Commander A E J Livsey RN.
Brigadier C S Middleton MBE RM.
Lieutenant L E Youngson RN (Resigned 27 November 2018).
Captain J R Stocker MA PhD RNR. (Resigned 27 November 2018)
Lieutenant Commander R T Weston RD** RNR. (Resigned 27 November 2018)
Captain A Claxton RM (Appointed 27 November 2018)
Lieutenant A J Christie RN (Appointed 27 November 2018)
Captain K Rowlands PhD RN (Appointed 1 April 2019)

9. All policy decisions, in particular rates of honoraria paid to the officers and subscriptions, are taken by the Trustees. The day-to-day production of the journal, the administration and financial affairs of the Charity, and the running of the Charity’s web-site are carried out by four officers: the Editor, the Secretary-Treasurer, the Assistant-Editor and a Book Reviews Editor. The SecretaryTreasurer and the Book Reviews Editor are employees of the Charity, receiving honoraria; the status of the Editor and Assistant Editor is that of self-employed persons.

Objectives and Activities.

10. The Trust Deed states the objective as follows:
“Encouraging thought and discussion on such subjects as strategy, tactics, naval operations,
staff work, administration, organisation, command, discipline, education, naval history and
any other topic affecting the fighting efficiency of the Navy but excluding the material aspects
of the technical sciences and in the hope that it would help to build up that body of sound
doctrine which is so essential to success in war and to provide a means of expression and
discussion within the Service.” The Trustees seek to pursue this objective by promoting among its subscribers imaginative thinking, research, critical analysis, correspondence and informed debate on naval matters, in order to support the efficiency of those in the Naval Service (Royal Navy, Royal Marines, Royal Fleet Auxiliary and RN and RM Reservists).

11. This aim is paraphrased on the title page of every issue of The Naval Review journal and on the Naval Review website, as follows:

“To promote the advancement and spreading within the Service of knowledge relevant to the
higher aspects of the Naval profession.”

12. The Trustees have complied with their duty to have due regard to the guidance on public benefit
published by the Charity Commission. Noting the Trust Deed (paragraph 10 above) the Trustees remain satisfied that through research, analysis, writing and debate subscribers transfer knowledge that strengthens the intellectual capacity of the armed services in the public interest, to the benefit of national security. The Trustees are actively pursuing means to expand the educational aspects of the activities of The Naval Review in pursuit of its charitable purpose. In that, clarity in its relationship, as an independent charity, with the Royal Navy is critical. Rejuvenation and codification of this linkage mechanisms to promote freedom of discourse has been agreed (April 2019) and captured in the following agreement with the Royal Navy:

“The Royal Navy and the Naval Review have enjoyed over a century of a unique relationship.
In respecting this special relationship, and in acknowledgement of constraints imposed on
serving members by established MoD communications policy, the Naval Review will remain
limited to membership by subscription only. But such agreement is on the clear understanding
that the Naval review will sustain its independent voice and continue to encourage reasonable
challenge to accepted policy amongst and by its members.”

13. The following are eligible to subscribe: officers and ratings, active or retired, of the Armed Forces of the Crown and the Commonwealth, and their Reserves; also members of the Royal Corps of Naval Constructors, and officers and ratings of the RMAS and RFA Service; and civil servants who hold or have held appointments in the Naval Commands, or appointments with a Naval Connection in the Ministry of Defence Headquarters or the Defence Equipment and Support (formerly the Procurement Executive); and officers and ratings, active or retired, of the Armed Forces of certain nations with which the United Kingdom has strong military connections. The necessary restrictions on those who can subscribe have no bearing on the public benefit delivered by The Naval Review. In fact, significant effort has been committed to the creation of a fully searchable archive of all issues from 1913.

14. The prime activity of the charity remains the quarterly publication of a journal, The Naval
Review. This has now been published continuously since January 1913 when the Trust’s forerunner, a Corresponding Society named The Naval Society, was established with similar objectives. The Charity’s web-site provides subscribers with access to archive material, and also provides a more immediate discussion forum than the quarterly journal can provide. However, the journal itself remains the journal of record. For a small charge, material more than ten years old is available for one month to anybody having access to the internet. All the indications are that this provides a valued source of research material to the wider community and, in particular, academics interested in maritime affairs.

Achievements

15. Although the funds raised during the successful Centenary Appeal which ended in 2013 have now been exhausted, many of the initiatives started then have been continued including:
• The annual award of £250 for the best article published in the journal by a junior officer. The
prize has been renamed The Clive Richards Prize in recognition of a generous donation of shares the income from which provides the funds for this award.
• Enhanced prizes to be awarded to young officers who have authored articles of particular
merit.
• A competition for the award of an annual fellowship to allow a junior officer of the Royal
Navy or Royal Marines to undertake a six-week period of study in defence establishments in
Australia on a subject of mutual interest to the Royal and Royal Australian Navies as part of his or her professional development. On completion, the successful candidate submits a paper for publication in the journal. Eight fellows have undertaken studies in Australia between 2010 and 2017. A tenth fellow has been selected for 2019. This fellowship continues to be generously sponsored by Ultra Electronics.
• An annual cash prize of £250 and membership of The Naval Review for two years for the
Naval student on the MSc Technology (Maritime Operations) course at Kingston University who provides the best academic paper published in The Naval Review on a topic relevant to their career. This prize is generously sponsored by RJD Technology/

16. Following a generous donation from Matthew Wills, two new annual prizes each of £500 were awarded in 2017 for the first time. The award is made for the best articles published in the journal on the shared history of the Royal Navy and the United States Navy and Royal Navy/United States Navy cooperation in the 21st Century.

17. Another generous annual donation by Commodore I A W Berry CBE RD DL RNR is used for the award of a £500 prize entitled the Warden Berry prize for the best article submitted by any serving member of the RNR or RMR under the age of 45 on 1 January in the year the prize is awarded. The first award was made in 2018.

Financial Review

18. Finance. The principal source of income for The Naval Review is subscriptions. The current number of subscribers is 1687 which is a further slight reduction from the previous year. It has been the practice to endeavour to balance surpluses and deficits over the cycle of a particular subscription level. After maintaining annual subscriptions at £38 for three years, the Trustees decided to increase this to £40 from 1 January 2019. In 2018, the General Fund recorded a deficit of £7,367 attributable to a degree by the development costs of a new website. The restricted Centenary Funds showed a deficit of £2,826 also caused principally by payments for the development of a new website. Overall during 2018, the market value of investments fell by £17,100 to stand at £130,193 at year end.

19. Reserves. Reserves are maintained to provide stability and to ensure that the journal can
continue to be published despite a sudden dramatic and unexpected short-term loss on income. In 2013, the Trustees revised their policy on reserves; it is now intended that reserves should be maintained at a level equivalent to between 18 and 24 months expenses at the current rate. Based on General Fund expenditure in 2018, reserves on 31 December 2018 equated to approximately 24 months expenditure.

20. Risks. A risk register is reviewed regularly, and the Trustees maintain Indemnity Insurance. The Trustees have assessed that the long-term risks to which the Charity is exposed are mainly financial or relate to maintaining its reputation for providing an outlet for independent thought. Previous concerns over the succession plan for officers of the charity have been alleviated with the appointment of a new Editor and Assistant Editor who took up their posts in 2017 and Secretary-Treasurer and Book Reviews Editor in 2019. Terms of office for each post have been set nominally at 5 years.

21. Financial risks normally revolve around maintaining sufficient income to fund the cost of
production of the journal. Recruiting and retaining subscribers is always at the forefront of Trustees’ considerations as subscriptions form the principal source of income. Subscribers are drawn principally from the officer corps of the Royal Navy and Royal Marines. The Trustees’ efforts are concentrated on recruiting a higher proportion of that pool. Discounting the decision to change the format of the journal, the risk from rising production costs of the journal is managed by the maintenance of excellent relations with the Charity’s current printers, who have printed the journal for over 30 years. The Trustees have examined the major strategic, business and operational risks that the Charity faces and
confirm that systems have been established to mitigate such risks.

Plans for Future Periods.

22. The Trustees undertook a series of projects to mark the centenary of The Naval Review in 2013 and secure the second one hundred years for the Journal and its related activities. This has led to a series of reforms as the Review has adapted to an expanded and reformed output – together with online facilities to enhance accessibility, exchange of ideas and researchability of the entire Naval Review archive, and with initiatives to promote a more modern codification of the relationship with the Royal Navy. The significant challenge of sustaining relevance and credibility amongst an explosion of media outlets, especially social media, that reflect on security and defence (many of which are unregulated),
remains foremost in Trustees’ minds.

To that end priorities set by the board of Trustees for 2019/20 are as follows:

• Expanded Membership – expansion of overall membership numbers remains key to future
viability. In that there is a concurrent need to shift the membership age profile towards building a younger majority to further reinforce the central purpose of the Review, whilst broadening the base where possible amongst other Services and those with an affinity or affiliation to the maritime case.
• Intellectual Alignment – building on the rejuvenated codification of the special relationship
with the Royal Navy, the Naval Review will work to develop key academic links with the Navy
through the First Sea Lords’ Fellowship and conferences, through simulating new academic links (for instance with the Corbett Centre and Naval Historical Branch) and reform of the Naval Review prizes regime to better encourage academic excellence in the Naval Service.
• Broadened Discourse – building on recent on-line and social media developments, reinforce
the position of the Naval Review as a key academic and intellectual space for the Royal Navy.
Accordingly broadening the means of discourse (e.g. through social media) needs to match the needs and desires of a modern-day membership, and of those who might be encouraged to join.

Approved by the Trustees and signed on their behalf by:
Signed on Original

Sir Mark Stanhope
CHAIRMAN
3 April 2019

 

Independent Examiner’s Report to the Trustees of the Naval Review

I report on the accounts of the Charity for the year ended 31 December 2018, which are set out in pages 1 to 2.

Respective responsibilities of trustees and examiner
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (The Charities Act) and that an independent examination is needed.
It is my responsibility to:

• examine the accounts under section 145 of the 2011 Act;
• to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act, and
• to state whether particular matters have come to my attention.

On the basis of independent examiner’s report my examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustee for any such matters.

The procedures undertaken do not provide all the evidence that would be required in
an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement

ln connection with my examination, no material matters have come to my attention which gives me cause to believe that in any material respect:
• The accounting records were not kept in accordance with section 130 of the Charities Act;
or
• The accounts did not accord with the accounting records; or
• The accounts did not comply with the applicable requirements concerning the form and
content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than in any requirement that the accounts give a “true and fair” view which is not a matter considered as part of an independent examination.

I have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed on the original

P A Nicholls MBE MAAT
5 Nursery Road
Havant
Hants PO9 3BG
27 January2019