Seafarers UK Annnual Report 2011 by Lexographic

2011 ANNUAL REPORT & REVIEW seafarers UK

the leading charity for seafarers in need

“Seafarers UK is the nation’s leading maritime charity, looking after people from the Royal Navy and Royal Marines, the Merchant Navy and fishing fleets, together with their families, in the UK and the Commonwealth.”

Chairman’s Message. . . . . . . . . . . . . . . . . . . . 2 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Objectives & Activities. . . . . . . . . . . . . . . . . . 4 Achievements & Performance . . . . . . . . . . 8

2011

ANNUAL REPORT

REVIEW

Structure, Governance. . . . . . . . . . . . . . . . . 19 & Management Financial Review. . . . . . . . . . . . . . . . . . . . . . 25 Financial Statements. . . . . . . . . . . . . . . . . . 29

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Seafarers UK (King George’s Fund for Sailors) is a Registered Charity in England and Wales, No. 226446, incorporated under Royal Charter. Registered in Scotland SC038191. Registered Office: 8 Hatherley Street, London, SW1P 2QT.

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Message from the Chairman Vice Admiral Peter Wilkinson

change of President is an important day in the life of our charity – after all, there have been only five since we were founded

– and so it was with great pleasure that we were able to announce in June last year that HRH The Earl of Wessex had accepted our invitation to take over the Presidency from HRH The Duke of Edinburgh. Prince Edward has already signalled to us his intention to be no mere figurehead, by expressing his wish to link Seafarers’ business with his other engagements whenever possible, and by being the principal guest at a dinner in Nelson’s Cabin on board HMS Victory, hosted by the Second Sea Lord. As Commodore of the Royal Fleet Auxiliary we knew he would have a natural affinity with the wide objectives of Seafarers UK and we are looking forward to a long and fruitful association with His Royal Highness.

And this year, 30 years on from the South Atlantic conflict, offers both our President and ourselves a real opportunity to remind the public that it was a combined RN,RM, RFA and Merchant Navy effort that enabled us to win that short, but nasty conflict. I am very pleased that we can also legitimately include the fishing fleet if we consider the contribution of the deep sea trawlers that were pressed into service as minesweepers. As a key departure port for the South Atlantic Task Force it is, therefore, very appropriate that Plymouth has been chosen as the lead city for this year’s Armed Forces Day and we look forward to being closely engaged with the City’s representatives, with South Atlantic veterans and with modern day beneficiaries in June. I am especially pleased that the commemorations coincide with Seafarers Awareness Week offering us a unique opportunity to put our message across to a wider cross-section of the public.

Royal Edinburgh Military Tattoo, challenge and sporting events are already opportunities that we grasp and some are hugely successful so let’s have some other suggestions, especially as we continue to widen our focus on areas other than our traditional supporter base. The Trustees and senior members of staff held a really helpful day of discussions in the Autumn which re-affirmed our collective endorsement of the Vision we have for Seafarers UK (see pages 6 & 7) but we are also very aware that this is not an easy time for any charity and for us to be heard above the background noise is exceptionally difficult. As ever, we can only do what we do with the funds we have available, and so it falls to me once again to thank you all for your generosity but to ask you to continue to give as much as you can (and encourage others) to enable us to continue our vital work. Our number of beneficiaries is only reducing slowly and the costs of care continue to rise inexorably. The front line charities that we support all tell us of the increasing calls on their funds and, although I wish you all long and healthy lives, please remember the charity in your will if you are able to do so. Finally but most importantly, can I offer, once more, my thanks to everybody involved with Seafarers UK; to the trustees who work hard to use their own particular areas of expertise for the good of the charity; to the conscientious staff under Barry Bryant who are really engaged, who believe in the charity and deliver so much in strongly performing teams; to the regional and area committees and all other supporters – I offer my sincere gratitude.

Lack of awareness of our dependence on the sea as a nation remains a continuing frustration for all of us involved with Seafarers UK – I know. Trustees and staff, supporters and friends do their best to remind the public and I am sure that it is a battle we have to win. I am equally certain that we have the prospect of making ground this year with our Director General now Chairman of the Maritime Charities Funding Group and our recent lead partnership role with the ‘Sea Vision’ Education programme but if you have any fresh ideas as to how we can drive home the message then please do let me know. Royal Marine Band Concerts, the

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Introduction by the Director General Commodore Barry Bryant RN

elcome to our Report for the calendar year of 2011. The first thing that you’ll notice is that this Report is a little slimmer and focusing more on the statutory requirements than in the past few years – one might almost say an austerity version,

in chime with the times in which we find ourselves. We previously used a fulsome volume both to fulfil our legal responsibilities and as our primary advertising document, but this year we hope to improve our marketing while also cutting our outlay. The hardcopy version of this report will only be produced in limited numbers but will also be available online via our website while, in line with present best practice, we will also publish in parallel a vibrant Impact Report, headlining the very many ways in which our work improves the quality of life for so many thousands of seafarers past, present and future, and their dependants. This will have a much wider distribution.

2011 will not go down in history as one of financial munificence either for the nation or for charities. However, we believe that by taking calculated risks, recognising the present and very real need of our beneficiaries, maintaining an extremely positive attitude, and harnessing the combined power of other major players in the sector, Seafarers UK stayed well ahead of the game. Our trustees understand that the majority of our benevolence is required not for short-term, eye-catching projects but for maintaining that essential quality of life so deserved by those who have served their time at sea, and their families who are, so often, left behind. The decision to maintain our annual grants total at £2.5m was not taken lightly. Given the uncertain and volatile annual receipts from legacies – although these are hugely important – and the presently equally uncertain income from our investments, we are very conscious that the sheer hard work of fundraising becomes even more vitally important. However, and even with the huge efforts of the fundraising team, we could not be certain that our surplus would adequately meet the essential need. We therefore agreed that in these uncertain times we would draw down from our reserves the amount necessary to maintain the £2.5m figure, thus enabling our larger and long-standing

beneficiary charities to plan ahead with some confidence yet also letting us pursue emerging areas of need. A constant theme that must run through our (and indeed any) charity’s work is that of getting the best outcome from whatever we spend; in military parlance, the ‘bangs per buck’ ratio. Sometimes that involves spending relatively modest sums on breaking into new areas or investing in initiatives for longer-term gain. This we have continued to do with our campaigning activity. Seafarers Awareness Week goes from strength to strength with national, local and social media activity, and in 2012 we hope to enter into a partnership with other major players from the UK nautical world to really promote a hard-hitting and common Maritime Message. Only by increasing awareness in both the public and some corporate sectors will we optimise our capability to raise much-needed funds. Another way of ensuring the best value for our expenditure is stressing, and subsequently assessing, the difference our grants make to people’s lives – the real outcomes, rather than mere numerical outputs. The former are often more difficult to quantify, but we make no apology for asking our beneficiaries to really think through their processes and explain to us not just what they do, but how and why. Of course we’ve always paid attention to such things, but with more sophisticated tracking and data-gathering available, we are now able to apply a more scientific approach. Finally I would stress that in describing ourselves as ‘the leading charity for seafarers in need’, we do not make that claim lightly. We believe that we have a unique leadership role as the only national maritime charity reaching right across all aspects of the Royal and Merchant Navies and the fishing fleets, and thus we are able to undertake cross-sector activity which benefits all seafarers and the many smaller charities which support them. As we take the Chair of the Maritime Charities Funding Group and remain the nautical voice on COBSEO and Veterans Scotland, we shall continue our readiness to undertake further efficiency projects and do all in our power to present a united front to the industry, to Government and to the nation as a whole.

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Objectives & Activities

Who we are and what we do Seafarers UK (King Georgeâ&#x20AC;&#x2122;s Fund for Sailors) is the nationâ&#x20AC;&#x2122;s leading maritime charity looking after people from the Merchant Navy, fishing fleets, Royal Navy and Royal Marines, together with their families, in the UK and the Commonwealth.

Our key aims are to improve the quality of life for seafarers and their families in times of need by securing more efficient aid and support for them and to ensure the effective distribution of funds to those charities that help them, so as to assist as many people as possible. We do this by concentrating on the five groups below.

Older AND EX-SEAFARERS

To ensure that all former UK and Commonwealth seafarers can live a dignified life, free from poverty, with access to all reasonable healthcare and domestic assistance.

Seafarersâ&#x20AC;&#x2122; dependants and families

To ensure that dependent families, including the wives, widows, former wives and partners of seafarers, of working age, and their dependent children, have access to a reasonable quality of life including adequate accommodation, clothing, education and holidays.

Seafarers of working age

To ensure that serving UK and Commonwealth seafarers have access to reasonable shore amenities, including transport and social facilities, communication with their families and financial help where appropriate, including during training. Former seafarers of working age should also receive similar benefits to those over retirement age, as well as help in finding employment where appropriate.

Maritime youth groups

To assist UK and Commonwealth citizens in maritime youth organisations who are training for a sea going career, including those in the Sea Cadets, with the cost of facilities and other financial help where appropriate.

Improving efficiency within the maritime sector

Seafarers UK is committed to working to improve the efficiency and effectiveness of the maritime charitable sector.

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Our governing document is our Royal Charter, first issued in 1920 and last amended in 2010. It describes our Objects as: The relief of seafarers, their families or dependants, who are in need. The education and training of people of any age to prepare for work or service at sea. The promotion of efficiency and effectiveness of the maritime charitable sector The promotion of safety at sea. All of these are achieved by providing support to organisations established within or (in exceptional circumstances) outside the Commonwealth. This allows us to help a wide range of people from the maritime community, although both the Charter and resolutions made by the trustees exclude some specific activities. For example, we are unable to support memorials or the various charities and trusts promoting sailing activities for the disabled. But we believe such related causes have their place in the maritime charity sector and always try to help them by advertising or taking part in joint promotions where possible. We consistently review our activities so we can meet the fundamental aims of the Charter in the light of the changing maritime, defence and social environment, of the 21st century. How we do this is described in the following sections of this report.

Providing benefit Under the Charity Act 2011 there is a requirement for charities to make formal statements in their reports concerning more precisely how their activities fall under one or more of the 13 definitions of providing benefit. The trustees of Seafarers UK would like formally to state that they have taken heed of the Charity Commission’s guidance on this matter when reviewing their aims and objectives and in planning future activities. Seafarers UK is actively and positively involved in:

• The prevention and relief of poverty • The advancement of health he relief of those in need by reason of youth, • Tage, ill-health, disability, financial hardship and other disadvantages, and

he promotion of the efficiency of the armed • Tforces of the Crown As well as having connections to other definitions promoting amateur sport, religion and education, where these are to do with nautical welfare. Indeed, we take great pride in having the ability, in principle, to relieve almost every aspect of the human condition, from cradle to grave, and irrespective of race, gender or orientation, so long as the beneficiary has satisfactory links with the UK and Commonwealth maritime community. As a grant-making organisation we rely ultimately on our beneficiary charities to deliver front-line impact, but we are confident that from our detailed knowledge and appreciation of their operations, that reliance is justified.

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Our vision for maritime charities One thing we have rarely lacked at Seafarers UK is a vision of where we’re going and what we want to achieve – or indeed several levels of vision. There are always new

initiatives or projects to pursue and, in basic terms, we just want to raise as much money as possible and spend it as wisely and efficiently as we can – and that applies not just for ourselves but for all the many charities that make up our sector. While rightly interested in ratios and other metrics, we are conscious that much of what we do does not reflect on us alone but is for the good of the whole sector, and indeed for the whole maritime community. For instance, there is really only room for one unified Maritime Message or one coordinated Seafarers Awareness campaign, and we very much hope that the outcomes from all such activities that we champion will increasingly benefit the sector as a whole.

Our role in representing our colleagues on various bodies such as COBSEO and Veterans Scotland takes a considerable slice of our time but is absolutely essential if the maritime voice is to be heard, both individually or as a vital part of the greater picture. We firmly believe that this unifying role will assume an even greater significance in the future. One area that we have developed recently is using the experience and capacity of our London-based staff to provide services to other relatively small organisations. For instance, we are supplying finance and grants administration, grants assessment and human resources advice to the newly formed Forces in Mind Trust, enabling that organisation’s small staff to focus on their core business of improving

the psychological well-being of the military. Good for their efficiency and good for our income – a win/win situation that we will develop further if opportunities arise, and an excellent opportunity to spread our influence in the wider sense. Similarly, our experienced staff members are always ready to offer advice, either working within our own auspices or through the medium of the Maritime Charities Funding Group. As a founding member of that organisation, we have always been at the centre of its research and project activities and, having taken the Chair in January 2012, we will be considering how best to carry forward ongoing initiatives and lessons from the Group’s Conference in October 2011. All the above reflects our very outward-looking but inclusive philosophy, designed to maximise the benefit of generic and cross-sector activities while leaving individual beneficiary charities to get on with their specialist roles. Another area that we wish to investigate and subsequently develop in 2012 is that of our Commonwealth seafarers. You will all be aware that commercial shipping has become the ultimate global industry; it is not unusual to find large merchant or cruise vessels crewed by many different nationalities but, regrettably, relatively few are British. Dealing with large shipping companies or providers of international maritime services, a question we are constantly asked is what can we do for their own employees? The answer, until now, has been not very much – given limited resources, we have always tended to prioritise our activities on the past generations of UK seafarers. Not least, we believe that this is what our traditional individual supporters would wish. The corollary now, unfortunately, is that we find it difficult to attract support from the present day shipping industry. However, several companies have indicated that they would be more interested in helping if we extended our aid to Commonwealth countries, and we have already been in discussions with those organisations with more knowledge in this area, such as the various Missions, the International Transport

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Federation and the International Seafarers Advice Network. Early days and much work to be done, but nautical welfare providers must, at least in part, reflect the industry they serve. An advanced vision, at least financially, would show sufficient resources to deal adequately with seafaring need both in the UK and across the Commonwealth – we can at least pursue the dream! I hasten to add that this work will not in any way diminish our long-standing focus nearer to home but may considerably enhance our standing in the eyes of the global industry. As you will read later in this report, our fundraising team does not lack an optimistic vision either! As available cash becomes tighter, they are constantly looking for ways to attract new supporters, either by enlarging existing events or championing new ones. There are many, many industries that support commercial shipping or, to put it another way, if it wasn’t for shipping and seafarers, many people wouldn’t have a job! We constantly try to make both these organisations and their employees realise the needs of the ‘front-line’ community, and how they can help. Fundraising will always be an uphill struggle and is sometimes a thankless task, but I commend my team for their constant enthusiasm and initiative – although many are not seafarers themselves, they identify very closely with the many thousands of those we help.

hazards of piracy, shipwreck, injury, fire and flood, and the emotional traumas of separation from friends and family, and isolation from modern social and technological amenities that the rest of us take for granted. We will not reach this nautical Nirvana unless we continue to promote the seafaring cause at all levels. Of course we will continue to focus on righting present wrongs and relieving distress at all the many levels on which we operate, from the bereaved child through the shipwrecked fisherman to the lonely and poverty-stricken veteran, but at the same time we must campaign for greater public awareness of seafaring problems, for greater safety at sea, for proper equipment for our maritime forces and, above all, a greater public appreciation of just how vital the sea and its people are to our national life. We are a small team with a big vision – please help us to achieve it!

Finally, commercial leaders would say that their visions of the future must be hard-edged and totally objective, much like the SMART objectives beloved of boardrooms and business plans. Certainly I would agree that for specific projects, perhaps fundraising events such as the 24 Peaks Challenge, income and expenditure must be tautly controlled and monitored, and this we now have the technology to do in increasing detail. However, in the wider and more subjective world of charity, I would like to think that there is room to pursue a more ethereal vision of perfection – a world where not only are there sufficient resources to meet existing needs, but a world where seafarers can carry out their business in great waters without facing the daily

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ACHIEVEMENT & PERFORMANCE

What our grant making achieved In 2011 we were approached by 78 charities (82 applications) and groups seeking a total of £4.327 million (2010 – £4.409 million1). By the end of the year we made 73 grants to 69 organisations2 for a total of £2.499 million3. Again this year, as a general principle, when making difficult choices, Seafarers UK has sought to protect revenue support funding for projects as it feels that this has the most direct and immediate impact on our beneficiaries’ well being. However, this year, we are pleased to be able to make two substantial capital grants – £50,000 to the William Simpsons Home in Scotland which provides residential social care for men with Alcohol Related Brain Damage with underlying mental health illness as well as respite care and day care places. Our grant contributed towards the replacement of the old residential accommodation with a new care home. The other substantial capital grant (£80,000 out of a total grant of £180,000) was to the Royal Naval Benevolent Trust to support the development of a new extension at their care home in Rochester. 1. These figures do not include a small number of applications from organisations and individuals that did not meet our basic requirements for funding and were declined without full assessment. 2. Including two grants to The Soldiers, Sailors, Airmen and Families Association (SSAFA) – Forces Help and two grants to Nautilus Welfare and three to the Maritime Charities Funding Group (MCFG). 3. This includes a programme-related investment of £180,000 to the Royal Merchant Navy School Foundation which is repayable on completion of the sale of the school – see below.

Grant making: an overview of the maritime sector

Seafarers UK is an umbrella charity supporting other charities that provide direct services to seafarers and their families from the Royal Navy and Royal Marines, Merchant Navy and the Fishing Fleets in the UK and the Commonwealth. All grants are awarded on the basis of need and we are the only grant-making charity in the seafaring community that works across all three sectors. This puts us in the unique position of being able to assess need and funding priorities across the whole seafaring community. The knowledge we have gained as a result enables us to work with other maritime charities such as Trinity House, the Merchant Navy Welfare Board and the Royal Navy and Royal Marines Charity in distributing grants to maximize the impact of our limited funds over the year and we are grateful to them for all the work they have put in to making this collaboration work. We believe that further development of this ‘joined-up’ approach to grant-making across the maritime sector provides an additional element of sophistication to our activities that result in benefits for all our beneficiaries. We plan to develop this collaborative approach further in future years both with individual maritime charities and within wider maritime forums such as the Maritime Charities Funding Group.

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Where our grants go Across the three maritime sectors we target our grants on the areas of greatest need. To assist us in this we have identified five categories under the terms of our Royal Charter. These are: Older & ex-seafarers Seafarers’ dependants & families At the end of 2010, the General Council of Seafarers UK took the decision that in this time of economic difficulties we should maintain our grant-making at previous levels and agreed a grant-making budget for 2011 of £2.5 million. Whilst other grant-makers have faced making cuts we have been in the fortunate position of being able to continue previous levels of support to those maritime charities who depend upon our funding to continue to deliver ‘on the ground’ benefits to current and ex-seafarers, their families and dependants and maritime youth organisations. We are pleased to report that after awarding grants totaling £2.478 million in 2010, we were able to maintain our grant-making in 2011 and over the year made grants worth £2.499 million. This means that Seafarers UK continues to be the largest grant distributor operating across the wider maritime charity sector. We continue to work in partnership funding approaches with Trinity House and the Merchant Navy Welfare Board and most recently with our new colleagues the Royal Navy and Royal Marines Charity (RNRMC) which has paid dividends. For example, we received a joint application from the Sailors Children’s Society based in Hull for £138,000. This charity is a national charity which we have supported for many years and currently assists 228 families with 417 children from Royal Navy, Merchant Navy and Fishing backgrounds through their Family Support Scheme. For more details on this grant see Seafarers’ Dependants and Families on page 10. The support provided ranges from a Monthly Grant paid to each family for day to day children’s expenses; a Clothing Grant paid to each child for new school uniform, winter shoes and coat, a Christmas Grant paid to each child to provide a small gift at Christmas and Special Grants – ad hoc grants paid to provide the opportunity of a week’s holiday for each family in one of the seven caravans owned by the Society on caravan parks around the UK. We are delighted that we have been joined by the RNRMC to support this excellent organisation with a grant of £69,000 which is half the requested amount, with the RNRMC also funding half.

Seafarers of working age Maritime youth groups IMPROVING EFFICIENCY See who we are and what we do on pages 4 & 5. Many of our grants cross sectors where some funding supports families and dependants whilst other elements of the same grant may support current seafarers, older seafarers and ex-seafarers. Our grants range in size from the Shipwrecked Fishermen and Mariners Benevolent Trust at £284,296 (see below) down to The Annual Seafarers Service in Wales at £500 (as a contribution towards the costs of the Annual Seafarers Service at Llandaff Cathedral in Cardiff). Of the 69 organisations supported during 2011, eight received £100,000 or more representing around 50% of our total grants budget for the year. Perhaps more interesting, 27 organisations we supported during the year received grants of £10,000 or less which shows how relatively modest sums can make a tremendous difference to the work of many charities involved with seafarers, ex-seafarers and their families and dependants.

Royal Merchant Navy School Foundation (RMNSF) A programme-related investment of £180,000 was made in May 2011 to support the Foundation to assist with cashflow whilst it completes the sale of part of the Bearwood estate to Bearwood College. If the sale completes The RMNSF would look to repay this investment. The RMNSF supports British children of merchant navy personnel by assessing their family circumstances and educational needs and providing help accordingly. The Foundation can help at all educational stages including university. It can also help with funding for career and personal development training. The Foundation will (at least initially) retain ownership of the remainder of the estate (from which it receives an income).

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In 2011 Seafarers UK awarded £105,000 to two youth organisations. As in previous years, our main beneficiary has been the Marine Society and Sea Cadets, who were awarded £100,000 as a contribution towards their Direct Grants Scheme which in turn goes to support over 360 separate Sea Cadet units throughout the UK. These grants range from providing security fencing, alarms and gates for individual Sea Cadet units, to general building works/maintenance and equipment (boats and associated equipment). Our Charter requires us actively to promote seafaring careers to today’s children and the Marine Society and Sea Cadets fulfill this role through a national programme of structured training at its separate cadet units across the country. An impressive proportion of these cadets subsequently join the Royal or Merchant Navies, where they often develop outstanding records of achievement over long careers.

SEAFARERS' DEPENDANTS & FAMILIES

MARITIME YOUTH GROUPS

As usual, we have split the grants across the five main pillars of our work – this split is based upon how the applicant has identified who the grants will go to assist and is based upon beneficiary numbers as submitted by individual applicants wherever possible.

This category covers a wide variety of people and our grants are similarly diverse. 25 of our grants contain an element of support for this group totaling £610,760. One grant worthy of special mention is the £69,000 given to the Sailors’ Childrens Society based in Hull (but whose services cover the entire UK). This year we have been able to provide a joint grant with our friends at the RNRMC so the total awarded to the SCS between us is a tremendous sum of £138,000. The grant supports the Family Support Scheme through which the Society currently supports over 450 children whose families have served in the fishing fleets or the Royal or Merchant Navies. The aim of the Society is to provide not only the basic necessities of life such as clothing, but to allow the children to partake in everyday activities that will enable them to achieve their full potential and take their place in society. Financial support reaches out to single parent families (many of them single due to bereavement) and to families where one of the parents is too ill, or disabled to work, and the other acts as carer. All the families must be in receipt of a means tested benefit before being able to apply for the Society’s help.

Older & EX-seafarers

What our grant making achieved: by category

Thirty-seven of our grants include an element of support for older and ex-seafarers and the total spend on this group was £1,042,098. This is the largest category of beneficiaries both by total awarded and number of organisations benefiting.

Again this year we also made a further grant of £100,000 grant to the Royal Navy and Royal Marines Children’s Fund. This money will be split between support for special needs education, respite and childcare, clothing and equipment and special and extra lessons.

The largest beneficiary charity – Shipwrecked Fishermen and Mariners Benevolent Society – received £284,296 for the year (an increase of nearly £30,000 from last year’s award of £255,840). The money provides help to merchant seafarers, fishermen and dependants in need. Support ranges from immediate grants to widows when a seafarer dies; regular grants to retired and elderly seafarers and widows; and grants to those retiring early due to ill health, disability or accident. In addition, special grants are offered to meet crisis situations. Beneficiaries come from across the UK. The second largest beneficiary in this category was The Royal Naval Benevolent Trust (RNBT) that received a total of £180,000. The grant supports the Trust in its work with retired and ex-seafarers, their widows and dependants. This year the grant is split between a contribution towards the costs of developing a new extension for the RNBT’s Pembroke House care and nursing home (£80,000) and the costs of electrically propelled vehicles and stair lifts and riser/recliner chairs (£100,000). Other grants of note include £65,408 awarded to Scottish Nautical Welfare Society to support regular grant payments to their beneficiaries, the maintenance of regular personal contacts via two part-time home visitors, and a contribution towards administration costs.

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SEAFARERS OF WORKING AGE

With the understandable focus on older and ex-seafarers and their families and children and young people, it is perhaps easy to forget that in 2011 Seafarers UK spent £663,935 supporting seafarers of working age, across 25 organisations spread throughout the UK and Commonwealth. The welfare needs of our current seafarers remains as important to us as ever, perhaps even more so in the current downturn. Changes in the shipping industry such as larger, more specialist vessels, smaller crews and quicker turn-round times continue to impact on seafarers’ lifestyles and their overall welfare. It is therefore essential that Port Chaplains have the use of reliable vehicles to carry out their work. In conjunction with partners from Trinity House, the Merchant Navy Welfare Board and the ITF Seafarers Trust, Seafarers UK has contributed £40,000 per annum for each of the last four years to create a project to help charities conducting ship visits and running Seafarers Centres at UK ports. The project will (over five years) involve the replacement of 82 vehicles around the UK and is an example of successful collaborative work in a difficult financial climate. The vehicles include minibuses, MPVs and cars used by Port Chaplains, staff and volunteers in and around UK commercial and fishing ports. Organisations benefitting from the project include Mission to Seafarers, Sailors’ Society, Apostleship of the Sea and the Fishermen’s Mission.

IMPROVING EFFICIENCY

It is worth remembering that when Seafarers UK was established in 1917 (as King George’s Fund for Sailors), it was for seafarers from across the UK and the Commonwealth. The focus of our grants has always been on UK seafarers and this is likely to continue in 2012 (in 2010, Seafarers UK spent less than 1% of its grants on supporting Commonwealth seafarers). However, where we are able to identify a need to support Commonwealth seafarers that can be achieved at reasonable cost we are willing to consider applications from outside the UK. In December 2011 we were able to make a grant to support the work of the Mission to Seafarers. Although based in the

Seafarers UK is committed to working to improve the efficiency and effectiveness of the maritime grant making sector. In support of this aim, in 2011 we made a grant to support the work of the Maritime Charities Funding Group which has commissioned a number of projects and pieces of work including a report on the housing and care needs of older ex-seafarers. We were also able to continue our support for the Confederation of British Service and Ex-Service Organisations (COBSEO) and Veterans Scotland in representing the voice of ex-service personnel.

UK, the Mission operates across the world and the grant of £123,157 will support the running and associated costs of their work in five ports; Cardiff, Newport, Port Talbot, Singapore and Cyprus, and for a general contribution towards their work in Scotland. Of this grant a total of £32,922 (Cyprus – £17,106 and Singapore – £15,816) will support their work in those Commonwealth countries. This represents under 1.3% of our total grants spend in 2011 on projects in Commonwealth countries Again this year we are able to award a grant of £120,000 to the Royal National Mission to Deep Sea Fishermen to continue to provide support at Mission Centres located around the coast, from Newlyn in Cornwall to Peterhead in Scotland and Northern Ireland, providing welfare provision for current and retired fishermen and their families. 2011 saw our grant to the Seamen’s Hospital Society continue its work to support the development of the Seafarers Advice and Information Line (SAIL). This excellent facility provides a telephone advice service via a ‘local rate call’ from anywhere in the UK, providing information and guidance, benefit checks, help completing forms and negotiating with other agencies to secure seafarers and their immediate dependants their entitlements. Other grants include £20,000 to the Regular Forces Employment Association, which assists Royal Navy personnel to find work when they leave the service and £100,000 awarded to the Ex-Services Mental Welfare Society – Combat Stress. Combat Stress provides specialist help and care to ex-service men and women who suffer from service-related psychological injury ranging from clinical depression to post traumatic stress disorder. Our grant will continue to support Combat Stress in providing two key services – a short term specialist treatment at three centres in Surrey, Shropshire and Ayrshire, and support services provided by 15 Regional Welfare Officers in the veterans home and community.

Grants to support organisations and projects in Scotland

Some years ago we made a public commitment to ensure that at least the equivalent of the amount raised through fundraising in Scotland would be spent supporting organisations and charities either based or operating in Scotland. We are pleased to report that once again last year we exceeded this commitment by funding organisations ranging from Cobhair Barragh on the Isle of Barra in the west, to the Peterhead and District Fishermen’s Benevolent Fund in the east, down to, Combat Stress treatment centre in Ayr. In addition, in 2011 we were able to make a substantial grant to support the development of a new care home

in Sterling (see overview above). Whilst it is difficult to be precise – as some of our grants go to support organisations operating across the whole of the UK- so the number of Scottish beneficiaries will be an under-estimate, at least £300,000 will directly support individual beneficiaries living in Scotland.

Legacy Grants

Once again, the importance of legacies left to Seafarers UK has been demonstrated by grants we have been able to make out of one particular legacy we hold as a designated fund – the Beryll Threadkell Legacy. Due to the kind generosity of this legacy, we have been able to support the Lord Kitchener Memorial Holiday Centre in Lowestoft.

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Seafarers UK grant making 2011 how the grants were distributed

TOTAL

Older and Seafarers’ Seafarers ex-seafarers dependants of working and families age

Alabare Christian Care Centres Alexandra House Foundation Annual National Service for Seafarers in St Paul’s Cathedral British Ex-Services Wheelchair Sports Association Broughton House Calibre Audio Library Centres for Seafarers Cobhair Bharraigh COBSEO Community Housing and Therapy Community Network Cruse Bereavement Care Dame Agnes Weston’s Royal Sailors’ Rest Erskine Hospital Ltd Ex-Services Mental Welfare Society – Combat Stress Falkland Islands Memorial Chapel Trust Fleetwood Fishing Industry Benevolent Fund Handicapped Children’s Pilgrimage Trust Humber Seafarers Service Joint Services Hosanna House Group 507 kids South East League of Venturers Search & Rescue

15,000 10,000 500 17,000 30,950 5,000 35,000 10,000 2,050 2,000 28,060 2,500 35,000 35,000 100,000 5,000 5,000 7,500 10,000 7,500 30,000 5,000

— — 250 — 30,950 5,000 — 10,000 — — 28,060 — — 35,000 — 5,000 5,000 — — — — —

— 10,000 250 — — — — — — — — 2,500 35,000 — — — — 7,500 — 7,500 30,000 —

15,000 — — 17,000 — — 35,000 — — 2,000 — — — — 100,000 — — — 10,000 — — —

Maritime youth groups

Improving Efficiency

— — — — — — — — — — — — — — — — — — — — — 5,000

— — — — — — — — 2,050 — — — — — — — — — — — — —

how our grants are made Ultimate responsibility for making all decisions on grants rests with the General Council of Seafarers UK. The General Council has chosen to delegate the consideration and recommendation of individual grants to the Distribution Committee (under its powers as set out in paragraph 34 of the revised Royal Charter) that meets twice a year (usually in June and November) to consider recommendations on the awarding of grants from the Director of Grants and External Operations. Following consideration by the Distribution Committee, recommendations as to who should receive a grant and how much that grant should be are made to the General Council, that makes the final decision. Only after the final decision has been made at General Council are grants announced to individual applicants. There are two exceptions to this process: Small grants. The General Council has agreed delegated authority to make grants of up to £5,000 to the Chair of the Distribution Committee in agreement with the Director General. Any grants made under this delegated authority are reported to the next Distribution Committee and General Council. Emergency Grants. In exceptional circumstances, the Chair of the Distribution Committee and the Director General can authorise payments of up to an agreed limit where applications from individuals or organisations are too urgent to wait for the normal cycle of Distribution Committee/General Council meetings. Any grants made under these circumstances are reported to the next Distribution Committee and General Council meetings.

Who grants can be made to

The individuals and groups to whom we can make grants are constrained by the Objects as set out in our Royal Charter, as created in 1920 and amended in 2010. Broadly we are constrained to support individuals and organisations working with seafarers, ex-seafarers and their families and dependants within the UK and/ or the Commonwealth. We are also able to support ‘the education and training of people of any age to prepare for work or service at sea’ and ‘the promotion of the efficiency and effectiveness of the maritime charitable sector.’

Conflicts of interest

Seafarers UK is fortunate to have many serving trustees with considerable knowledge and experience of the maritime sector, and a number have current or recent links to organisations from whom we receive applications for funding and to whom we may make grants. To ensure fairness in our grant-making, all trustees complete a declaration of interests form listing any interest or involvement in any organisation. In addition, at the start of each Distribution Committee and General Council meeting, trustees are requested to identify any application put before the members in which they may have an interest and this is recorded in the minutes of the meeting. Depending on the nature of that interest, the trustee may (1) not participate in discussion about that organisation, (2) not vote in any decision to award funding or (3) be asked to leave the meeting whilst the organisation is discussed.

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TOTAL

Little Merlins Pre-School and Nursery Lord Kitchener Memorial Holiday Centre Lord Kitchener National Memorial Fund Manx Marine Society Merchant Navy Association Maritime Charities Funding Group National Gulf Veterans and Families Benevolent Association Nautilus Welfare Funds Peterhead and District Fishermen’s Benevolent Fund Queen Victoria Seamen’s Rest Regular Forces Employment Association Ltd Royal Alfred Seafarers’ Society Royal Commonwealth Ex-Services League Royal National Mission to Deep Sea Fishermen Royal Navy and Royal Marines Children’s Fund Royal Seamen’s Pension Fund Sailors’ Children’s Society Sailors’ Society Scottish Nautical Welfare Society Scottish Shipping Benevolent Association Seamen’s Hospital Society Shipwrecked Fishermen & Mariners’ Royal Benevolent Society Sir Oswald Stoll Foundation Somali Senior Citizens Club Special forces Benevolent Fund Spinal Injuries Association St David’s Nursing Home St Dunstans St Loye’s Foundation The Annual Seafarers Service in Wales The Apostleship of the Sea The Chaseley Trust The Marine Society & Sea Cadets The Merchant Seamen’s War Memorial Society The Mission to Seafarers The Not Forgotten Association The Queen Alexandra Hospital Home The Royal Homes The Royal Liverpool Seamen’s Orphan Institution The Royal Naval Benevolent Trust The Scottish Veterans’ Garden City Association The Sea Fish Industry Authority (Seafish) The Soldiers, Sailors, Airmen and Families Association (SSAFA) Forces Help Tyne Mariners Benevolent Institution Veterans Aid Veterans Scotland William Simpsons Revenue and capital grants authorised 2011 2010 grants authorised

Older and Seafarers’ Seafarers ex-seafarers dependants of working and families age £

Maritime youth groups

Improving Efficiency

2,617 2,500 2,350 3,500 5,000 110,000 17,573 101,035 5,000 46,218 20,000 30,000 16,400 120,000 100,000 48,000 69,000 25,000 65,408 1,200 87,000 284,296 20,000 10,000 4,000 5,000 18,000 30,000 5,000 500 25,000 15,000 100,000 30,000 123,157 10,000 25,000 10,540 50,000 180,000 30,000 70,000 62,489

— 2,500 — — 2,500 — — 65,673 5,000 43,908 — 30,000 16,400 48,000 — 48,000 — — 42,515 — 34,800 142,148 — 10,000 4,000 2,000 18,000 28,500 — 500 — 15,000 — 21,900 2,465 10,000 25,000 10,540 — 135,000 6,000 — 62,489

2,617 — 2,350 3,500 — — 17,573 35,362 — 2,310 — — — 12,000 100,000 — 69,000 — 18,000 1,200 8,700 127,933 — — — — — — — — — — — 4,500 2,465 — — — 50,000 41,000 19,500 — —

— — — — 2,500 40,000 — — — — 20,000 — — 60,000 — — — 25,000 4,893 — 43,500 14,215 20,000 — — 3,000 — 1,500 5,000 — 25,000 — — 3,600 118,227 — — — — 4,000 4,500 70,000 —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 100,000 — — — — — — — — — —

— — — — — 70,000 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

40,000 20,000 4,800 50,000

40,000 — — 50,000

— — — —

— 20,000 — —

— — — —

— — 4,800 —

2,498,643 2,477,762

1,042,098 1,058,092

610,760 697,252

663,935 550,311

105,000 126,607

76,850 45,500

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Fundraising & communications In 2011, many of the traditional fundraising markets reduced the amounts they were giving to charities and Seafarers UK income was lower than hoped as a consequence. This affected Seafarers UK as companies and trusts reduced the amounts they were giving to charities and fewer individuals participated in our challenge events, with those who did, finding fundraising more challenging than in previous years. Towards the end of the year and looking into 2012, we feel this is still a difficult market but improving, we have already recruited more teams for the 24 peaks challenge in 2012.

Fundraising and Communications had already started to restructure at the end of 2010 and 2011 produced many changes to operational procedures, with additional improvements in planning, promotion, administration and follow-up made with every event and campaign that was executed during the year. As 2011 progressed this meant a better use of resources, development of some new fundraising techniques and improved targeting and tailoring of communications. Overall, fundraising income was lower than hoped but we feel we have a much stronger platform in place for 2012. Areas of focus for the team’s work in 2011 included the running of a major appeal for individuals, delivering two national fundraising campaigns, supporting regional fundraising and raising awareness – both in terms of our own name and brand and the maritime charity sector as a whole. There were also several changes in the fundraising team during the year. Nigel Shattock took up the new role of Director of Fundraising & Communications; Jos Standerwick took up the role of Corporate Partnerships & Fundraising Manager in October and Gurvinder Gregson, Fundraising Manager-Events and Paola Martin Database Supervisor both joined us in December. Voluntary income and activities for generating funds jointly raised £1,834k in 2011 and with authorised grants of £2,499k; once again every penny given to Seafarers UK makes it directly to the recipient charity, with interest!

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Individuals

The loyal support that we received in 2011 from our individual donors, volunteers and fundraisers continued to be quite astonishing, especially with the economic climate in mind. A key area of development during 2011 was built around improving the processes for encouraging, enabling, receiving, processing and recognising donations. Saying thank you to a donor efficiently, politely, accurately and in the way that is expected or wanted is probably the most important aspect of fundraising. This will always continue to be an area of on-going focus. Donations make a significant difference to the charity’s voluntary income and we are immensely grateful to all individuals and their families who gave money, time and effort in 2011. Every donation, whether large or small, from one person or a group of people is appreciated. Most of the donations arrive using the traditional methods of raising voluntary income, such as events, appeals and direct debits but in 2011 the Fundraising and Communications team also began to find new and more inventive ways of giving. Two examples of this were text donations and registering as a charity on eBay. The latter enables people selling items to donate some or all of, the proceeds to Seafarers UK. It is still very early days for this type of fundraising but we are working hard to make it easier for individuals to donate whenever and wherever and via routes which are easiest for them. In November we held a special dinner on board HMS Victory with our new president, HRH The Earl of Wessex, in attendance. The evening was hosted by Vice Admiral Charles Montgomery, Second Sea Lord, and guests were mainly drawn from the world of business, some invited as a ‘thank you’ for their longterm support and some we hope will support us in the future.

Finally at our Annual Meeting in May, six people were recognised for their commitment to supporting our cause in various ways. They were Commander Bruce Nicholls OBE Royal Navy, Brian Evans, Mrs Dora Richards, Mrs Shirley Quinton, Mrs Jean Cameron and Paul Smith.

The President’s Appeal In the year of his 90th birthday, HRH The Duke of Edinburgh lent his personal support to our main fundraising Appeal for 2011. This included hosting a major reception at Buckingham Palace in March to launch The President’s Appeal. This was in honour of Prince Philip’s many years of support as the charity’s President and also as a way of acknowledging and celebrating his lifelong connection with the sea and his wartime Naval service. His Royal Highness spoke eloquently about both the historical and on-going reasons and requirements for strong welfare support for all seafarers in need. The wonderful occasion also afforded many of Seafarers UK’s most faithful supporters the opportunity to meet and talk with The Duke of Edinburgh during the evening. By the end of the year The President’s Appeal had attracted £136,000 in donations, with a further £60,000 promised to the Appeal for 2012 and 2013.

Campaigning and communications In 2011 Seafarers UK took some further steps towards beginning to raise the General British Public’s awareness of the importance of the maritime sector, and the role and contribution of seafarers in this, and the difficulties they face. With the associated aims of increasing the charity’s profile within the maritime sector itself, as well as that of the wider maritime charity sector in general, Seafarers Awareness Week was held in early June. In all, 156 radio stations across the UK, including syndicated Sky News and BBC Scotland and BBC Wales, covered the story. This equated to 32 million potential listeners and took the form of either broadcast interviews with Seafarers

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Fundraising & communications (continued) UK staff or the highlighting of survey results about low levels of maritime knowledge in the UK, carried out as part of the awareness campaign. Another element of the campaign was social media. Seafarers UK produced a ‘what if?’ type video for sharing via YouTube, Facebook, Twitter and other platforms. The 10 minute film was a deliberately farfetched scenario where all the world’s ships suddenly disappeared with the storyline then pursuing what the resulting impact might be on the UK’s economy and society over the following 10 days. It was viewed over 7,000 times and it was also short-listed for the 2012 Maritime Foundation media award for best film or video about the maritime sector. You can still view it at www.noships.com. Communications work in 2011 included updates to the charity’s magazine, Flagship, which continues to gain increasingly good feedback with every issue. Now readers can access a new online version which was launched in December. This allows supporters to read the magazine using page-turning software on our website. New communications are also being planned and launched, with a Seafarers UK e-newsletter, Flagpost, now available to sign up to from our website, a new Welcome Pack for supporters and fundraisers, production of an Impact Report, and a navigation make-over for our website. There will be a more coordinated approach to social media for fundraising and challenge events as we progress through 2012 and Seafarers Awareness Week (25 June to 1 July) will of course play a major part in our programme of events, which this year coincides with Armed Forces Week in Plymouth, where we plan to have a strong presence.

Community fundraising Across England, Wales, Scotland and Northern Ireland, hundreds of volunteers worked tirelessly as they have done for many years, to raise funds in support of Seafarers UK. Most of them are part of a

local committee of volunteers who organise all sorts of fundraising opportunities throughout the year from flag days, cocktail receptions, ceilidhs, Royal Marines Band concerts, lunches, bridge parties, raffles and the selling of Christmas cards. The work they do forms the backbone of the charity’s fundraising efforts and is hugely appreciated. In 2011 over 10,000 people attended Royal Marines Band concerts in support of Seafarers UK. This demonstrates what an impressive channel these concerts are in enabling Seafarers UK to reach out into local communities and potentially gain new supporters. The concerts continued to be very well received by all those attending, irrespective of age, emphasising the musicality and showmanship of those who make up the Royal Marines Bands and who are able to put on such diverse programmes of music. In 2012 we hope to communicate the strength and depth of the musical talent on offer to a wider audience, to more local communities and maybe more people could enjoy the concerts, hear about the good work being done by Seafarers UK and increase the ticket sales. In November, a good number of regional committee chairs and members from across England and Wales attended an ideas-sharing and planning day in London. Staff made presentations on fundraising, finance, campaigning, and plans for 2012. The sharing of experiences, problems and ideas proved immensely helpful. It is hoped this will be run every year.

Scotland events Seafarers UK volunteers held many successful fundraising events across Scotland during the year. These included a number of excellent Royal Marines Band concerts and an Armed Forces Day held in Edinburgh in June. These raised the charity’s profile whilst also raising funds. In November Seafarers UK organised a Royal Marines Band concert in Usher Hall to an audience of over 900. As part of this we jointly hosted a pre-concert drinks reception with

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the Marine Society and Sea Cadets and the Scottish Veterans’ Residences. The audience heard from a young Sea Cadet from the Musselburgh Unit and how the Sea Cadets has had a huge impact on her life and The Chief Executive of Scottish Veterans Residences, Col. Ian Ballantyne, spoke about the beneficiaries of his charity and the aim of building additional housing. As in recent years, every penny fundraised in Scotland continues to be spent in Scotland. This is important to all our donors and fundraisers in Scotland and for organisations or groups such as the trustees of The Royal Edinburgh Military Tattoo, from whom Seafarers UK were very grateful to receive a £20,000 donation as part of the 2011 event. This was in support for our long-term and on-going funding of both Scottish-based charities providing local services to serving or ex-RN personnel, as well as Merchant Navy and fishing fleet beneficiaries and of other national charities providing welfare services across Scotland. Scottish fundraising in 2011 also included, at a local level, the inaugural Maritime Fun Day, in Anstruther. This was coordinated by Dr Robert Prescott of our Perth & Fife volunteers group. The event involved a rowing challenge, numerous stalls, a raffle and tours of the restored sailing drifter ‘Reaper’. The day’s activities helped to raise £1,000 for Seafarers UK.

in recent years this event continues to be one of the most important in our fundraising calendar. The London Marathon had 23 participants running on the day to raise funds for Seafarers UK. Of particular note was Sergeant Carl Creasey, Royal Marines who succeeded in breaking the world record of running a marathon whilst carrying a 60lb pack on his back. Carl completed the race in an astonishing four hours and 56 minutes! Paul Smith achieved the amazing feat of running the marathon in support of Seafarers UK for a fifth time. An increasing area of fundraising for Seafarers UK is people participating in either their own personal challenge or in a third-party organised event. In 2011 some notable examples of this type of support included a climb to Everest base camp, competing in an Iron Man challenge, the British 10K in July, the Great South Run in October, shaving off some beloved and very long dreadlocks, growing moustaches and taking part in a Christmas Day swim in Weymouth harbour.

Challenge events The 24 Peaks Challenge is one of Seafarers UK’s own branded challenge events. In 2011 the number of teams taking up this daunting and highly physical team competition was less than the previous year. Nonetheless, eleven teams still battled their way through training, long journeys, gruelling climbing and foul weather to take part in what is a most fantastic fundraising event. Over the July weekend the rain in the Lake District was unrelenting and only served to highlight how testing and difficult this ultimate team building challenge is. The fundraising achieved by those involved was magnificent and as

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Fundraising & communications (continued) Corporates Corporate fundraising is an important area for Seafarers UK, and includes partnerships, corporate donations and employee fundraising, but it is still relatively untapped in terms of potential income generation for the charity. Some very strong relationships do exist, though, and in 2011 these continued to be nurtured and developed. The partnership with Fuller’s on Seafarers Ale saw further growth in sales and the first Seafarers Ale branded dray, for delivering the beer to pubs, was also unveiled during the year. An initial, but small partnership with Cutty Sark whisky was entered into during 2011, which saw The Edrington Group kindly agreeing to supply the charity with bottles of their product for events and raffles. In June shipping companies were the asked to do something fun at work for Nautical Friday and raise funds for seafarers in need at the same time. North P&I went one further and organised a ‘NautiBall’ at the Newcastle Old Assembly Rooms, raising £1,700. Maersk were strong participants in the day too, raising £1,595 across their various offices from nautical fancy dress competitions and at Polestar Global they raised £836 through such means as a ‘cake & nibbles’ sale, battleships competitions, knot-tying and fancy dress. Local businesses got involved too, with the A Bar in Portsmouth raising £400 in donations from customers and Drink Shop Do in London running a series of nautically themed evenings for their customers. The Fish & Chip Feast ran for the second time in October, this time attracting a lot of promotional

support from the likes of Seafish (the industry regulator), T Quality, a wholesale supplier for the fish and chip industry, Fry Magazine, a retail trade publication and Fish’n’Chick’n, the UK’s largest chain of independent fish and chip shops. The campaign gained a good profile for the charity across the sector, but, in future years, needs to increase income to become a real fundraising success. Numerous other companies including Carnival UK, who raised £9,000 during the year from their on-board collections and Rolls Royce who gave a generous donation of £10,000, Maersk who donated £5,000 towards Seafarers Awareness Week and Associated British Ports who engaged strongly with our challenge events, with one team from ABP being the top fundraisers for 24 Peaks are a few to mention. We would like to thank these and all the other maritime businesses who support us.

Looking ahead 2012 will include the Queen’s Diamond Jubilee, the London Olympics and the 30th anniversary of the Falklands war and it will also be the 95th anniversary of Seafarers UK (King George’s Fund for Sailors). With this in mind, much is planned. In March we launched The Seafarers UK Children’s Appeal and later on in the year we will offer some new challenge events with places available at the Great London Swim and the Great Edinburgh Run, as well as an Apprenticestyle challenge for corporates throughout June and culminating on Nautical Friday (29 June).

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Structure, Governance & Management strategy and business plan

The Audit and Governance Committee, which meets at least twice a year, continues to review the operation and effectiveness of the control framework during the year in question. The chair of the Audit and Governance Committee is invited, and often attends, meetings of other committees. Seafarer UK’s strategy to achieve its purposes is set out in an annual Business Plan, which is reviewed regularly by standing committees throughout the year, and updated and approved by the General Council. The opportunity was taken in the latter half of 2010 to produce a complementary five-year Strategic Plan.

Although our essential Objects remain unchanged, following the amendments to the Royal Charter, the Strategic Plan takes into account changes in demographic profiles, the emergence of new organisations such as the Royal Navy and Royal Marines Charity, and possible options for the future of the Maritime Charities Funding Group. It lays out a Vision for the future of Seafarers UK, and suggests strategies to achieve that desired state. The paragraph below is taken from the strategic Plan and clearly explains the aim:

A Vision for the Future Future direction must be driven by a shared and agreed Vision of where and what Seafarers UK should be in five years time. This is based on five main themes:

Remaining ‘the leading charity for the UK’s maritime community’ Adopting a stronger central position in the maritime charity sector, providing a focus for campaigning and managing generic services and projects Supplying a stronger and more successful fundraising and grant-making service to the sector Remaining the maritime link with COBSEO and Veterans Scotland Providing a focus for maritime research and the link with the Royal British Legion’s Research Board and other external data sources.

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the officers of Seafarers UK Name and registered office of the Fund

Seafarers UK (King George’s Fund for Sailors) is a registered charity, number 226446, in England and Wales, incorporated under Royal Charter, and registered in Scotland under number SC038191. The registered office is 8 Hatherley Street, London, SW1P 2QT. Seaservers Limited is a wholly-owned subsidiary of the Charity through which Christmas cards and other goods are sold.

Members of the General Council President: President: Chairman: Deputy Chairman: Deputy Chairman:

Admiral of the Fleet, HRH The Prince Philip, Duke of Edinburgh KG, KT (resigned June 2011) HRH The Earl of Wessex, KG, GCVO, ADC (from June 2011) Vice Admiral P. J. Wilkinson CB, CVO, BA Captain D. C. Glass OBE (resigned May 2011) P Mamelok DL, FCA (*A) (appointed July 2011)

M. C. D. Acland (F) (FRAG) Capt. R. H. Barker (from July 2011) Major P. M. H. Dunn RM Alderman The Hon. Jeffrey Evans (from April 2011) Ms C. Gould (D) A. Lydekker (D) C. Marr (D) P. McEwen, MBE (D) (resigned May 2011) B. Miller (*D) Key to General Council sub-committee membership F D A FRAG *

Member of the Finance and Investment Committee Member of the Distribution Committee Member of the Audit and Governance Committee Member of the Fundraising Advisory Group Chairman of Committee

Vice Presidents

The Most Rev. & Rt Hon. The Lord Archbishop of Canterbury His Eminence the Cardinal Archbishop of Westminster Chief Rabbi of the United Hebrew Congregations The Speaker of the House of Commons The Rt. Rev. the Moderator of the General Assembly of the Church of Scotland The Rt. Rev. & Rt. Hon. The Bishop of London The Rt. Rev. the Bishop of Sodor and Man The President of the Methodist Conference Vice President of the Baptist Union of Great Britain The Moderator of the General Assembly of the United Reformed Church The Chaplain of the Fleet Admiral of the Fleet Sir Benjamin Bathhurst GCB, DL Admiral Sir Jock Slater GCB, LVO, DL Sir Brian Jenkins GBE Admiral Sir William O’Brien KCB, DSC Admiral Sir Brian Brown KCB, CBE

Management

Director General: Commodore B. W. Bryant CVO RN Finance Director: I. Wardle

Bankers

National Westminster Bank plc 280 Bishopsgate, London, EC2M 4RB

Captain D. A. Parsons MNI (D) S. Rivett-Carnac (F) J. Saunders Watson (*F) Ms D. Sterling (from April 2011) J. W. S. Thompson MBE, BEM (resigned July 2011) T. B. Warren (A) F. Welsh (D) (resigned May 2011) S. Wood (from July 2011 and resigned December 2011)

Members of the Corporation are entitled to vote at the Annual Meeting (AM). Members of the Corporation are the General Council for the time being; and the Vice Presidents for the time being.

Vice Admiral Sir Cameron Rusby KCB, LVO Vice Admiral the Hon. Sir Nicholas Hill-Norton KCB Captain Sir Miles Wingate KCVO Rear Admiral Sir Donald Gosling KCVO, RNR Rear Admiral D. J. Mackenzie CB Sir Ian Denholm CBE, JP, DL Sir John Ritblat FRICS F. M. Everard CBE Captain D. C. Glass OBE The Rt. Hon. the Lords Mayor of the City of London, Cardiff, Belfast and Bristol The Rt. Hon. the Lords Provost of the Cities of Edinburgh and Glasgow The Lords Provost of Aberdeen and Dundee The Rt. Worshipful the Lords Mayor of Birmingham, Coventry, Kingston upon Hull, Liverpool, Manchester, Newcastle upon Tyne, Nottingham, Oxford, Plymouth, Portsmouth, Swansea and Westminster The Rt. Worshipful the Mayor of Southampton

Director of Grants & External Operations: D. Treleaven Director of Fundraising & Communications: N. Shattock (from January 2011)

Investment Manager

Ruffer LLP, 80 Victoria Street, London. SW1E 5JL Veritas Asset Management (UK) Limited, 6th Floor, Elizabeth House, 39 York Street, London, SE1 7NQ

Independent Auditors

PricewaterhouseCoopers LLP Chartered Accountants & Registered Auditors 7 More London Riverside, London, SE1 2RT

UBS AG – Wealth Management Division,1 Curzon Street, London, W15 5UB

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Legal Structure

Seafarers UK is a non-statutory body incorporated by Royal Charter. The Charter was originally granted in 1917 and, together with the Statutes, provides the rules and guidelines under which Seafarers UK operates. After approval by the Privy Council, Supplemental Charters were granted by in 1949, 1960, 1976, 1992 and 2010. Amendments to the Statutes were approved by the Privy Council in 2010. The wider inclusivity in the new Royal Charter allows us to be as flexible and proactive as possible in using our resources for the greater good of the maritime and tri-service charity and welfare sectors. For several years we have been able to use our knowledge and experience to advise others such as Trinity House, who have grant money to target but do not have a dedicated distribution system. We have now taken this a step further, and we have recently been able to use our human resources and financial management expertise in supporting the COBSEO organisation, Forces in Mind Trust and this is to be extended to Maritime Charities Funding Group in 2012.

Appointment of Trustees New trustees are nominated by General Council and elected for a five-year term of office. These appointments are all subject to the approval of the full membership of the Corporation.

Training of Trustees Following election to the Council, each trustee is provided with relevant Charity Commission publications covering responsibilities and essential knowledge, and these are updated when necessary. Trustees also receive regular briefings on any emerging legislation affecting charities at their fourmonthly meetings, and new trustees receive a full induction programme covering both their generic and specific responsibilities and the entire spectrum of Seafarer UKâ&#x20AC;&#x2122;s business.

The trustees are members of The General Council, which is the ultimate governing body. Council sets policy and is responsible for the conduct of Seafarers UKâ&#x20AC;&#x2122;s affairs and for ensuring that the charity operates in accordance with the Royal Charter, the Statutes and the law.

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Organisational Structure and Operation The General Council, which meets three times a year, has a formal schedule of matters specifically reserved to it for decisions. It has delegated authority to the following main Committees of Council Members which meet regularly during the year: Finance and Investment Distribution Audit and Governance Fundraising Advisory Group Members of these Committees are shown on page 20. Committee Chairmen, supported by the relevant Executive staff, report on Committee activities to each General Council meeting. The Chairman of the Council also convenes informal groups of trustees as required to discuss specialist matters.

Efficiency studies into various aspects of Seafarers UK’s activities are conducted periodically. The Council believes that Seafarers UK’s system of internal control provides reasonable, but not absolute, assurance that assets are safeguarded, transactions are authorised and properly recorded, and that material errors and irregularities are either prevented or would be detected within a timely period. In common with many other charities of similar size and organisation, a proportion of voluntary income is derived from events and flag days which cannot be fully controlled until it is recorded in the accounts. The General Council and Executive management make every effort to ensure that all such sums are properly accounted for and, in their opinion, this does not constitute a significant uncertainty in the preparation of the accounts.

The Council has overall responsibility for Seafarers UK’s system of internal control and has an organisational structure with clearly defined lines of responsibility and delegation of authority. Information and reporting systems are in place for monitoring Seafarers UK’s activities and performance. The Audit and Governance Committee reviews the effectiveness of Seafarers UK’s internal control procedures and receives regular reports from management and the external auditors. The financial Executive management software system project has been designed to enable individual staff to have closer control and ownership of their budgetary areas, and allow more meaningful management accounts to be produced. The Council has delegated to Executive management the implementation of the system of internal control, including those concerning Voluntary Committees. Controls and procedures, including information systems controls, are detailed in the Staff Handbook.

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Statement of

Trustees’ responsibilities The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Statement of Recommended Practice “Accounting and Reporting by Charities (revised 2005)”, other current statutory requirements and the governing document. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for preparing financial statements for each financial year, which give a true and fair view (in accordance with United Kingdom Generally Accepted Accounting Practice) of the state of affairs of the Trust and of the surplus or deficit of the Trust for that period. In preparing those financial statements, the trustees are required to:

Each trustee accepts that:

◗ select suitable accounting policies and then apply them consistently; ◗ make judgments and estimates that are reasonable and prudent; ◗ state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and ◗ prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Trust will continue in business.

1 insofar as the Trustee is aware, there is no relevant audit information of which the Trust’s auditors are unaware; and 2 the trustee has taken all the steps that he or she ought to have taken as a Trustee in order to make himself or herself aware of any relevant audit information and to establish that the Trust’s auditors are aware of that information. The maintenance and integrity of the Seafarers UK website is the responsibility of the trustees; the work carried out the by auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The trustees confirm that they have complied with the above requirements in preparing the financial statements.

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Control of risk Identification and subsequent management of risk is as important in running a major charity as in any business. Seafarers UK has a tiered system of risk control, with each specialist sub-committee examining all risks pertaining to that area before passing major items up to the Audit and Governance Committee and the General Council. Risks are given a numerical score in terms of both their likelihood and their magnitude. For example, the likelihood of an aircraft crashing on Head Office might be assessed as 1 (the lowest) but the magnitude would undoubtedly be 6 (the highest). The overall risk score is produced by multiplying these two numbers together. In this case a score of 6 would make this a fairly low area of worry.

Following a recent update of the Charity Commission’s guidance CC26, Charities and Risk Management, Seafarers UK revisited the management of risk and feels the four basic strategies of transferring the financial consequences, avoiding the activities, managing the risk or accepting the risk is in operation. An example of this in recent years is the change of pension scheme. Seafarers UK reviews and updates its risk register on a regular basis. The trustees confirm they are satisfied that there are sufficient controls and processes in place to ensure that the key risks identified are being managed effectively.

Reserves policy The General Council has reviewed the levels of the Seafarers UK’s reserves, which are available to meet its ongoing charitable commitment to finance the recurring demand for regular almonising, emergency and other grant support payments.

Its reserves policy remains to gradually increase the level of free reserves over time whilst at the same time increasing the levels of grants to meet additional need. It will seek to achieve this by a combination of additional legacy promotion, increased general fundraising activities and improved investment returns.

The level of reserves is also considered annually by the General Council in determining financial forecasts within Seafarers UK’s Business Plan.

As well as taking the long-standing burden-sharing agreement with Greenwich Hospital into account, the study also underlined the importance of the Seafarers UK’s role within the Maritime Charities Funding Group, where it seeks to use all available maritime sector charitable resources more effectively and thus reduce the burden on its own reserves.

An actuarial review of the Seafarers UK’s long-term financial position was completed in 2007. Results suggested, on the basis of certain assumptions, that Seafarers UK’s expected long-term demands for funding exceeded its long-term assets by approximately £8 million. The trustees monitor the reserves position closely and believe it is essential that Seafarers UK pursues prudent financial policies in order to continue to support the future needs of beneficiary charities. It thereby seeks to balance benevolence as fairly as possible between different generations of beneficiaries. Accordingly it set the amount of grants distributed in such a way that a modest operating deficit was achieved in order to part repair the damage inflicted on maritime charities by the ongoing financial turmoil in the global economy.

During 2011, reserves of unrestricted funds decreased by £0.87 million to £32.58 million and the designated fund was closed, and decreased by £0.81 million. These decreases were incurred because the charitable expenditure exceeded the surpluses after Governance costs by £1.36 million. The reserves of restricted funds and endowment funds increased by £0.04 million to £7.07 million. The purposes of the restricted and endowed funds are set out in note 16 to the accounts.

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Financial Review: 2011 The financial statements are presented in the standard format required by The Charities (Accounts and Reports) Regulations 2005 and the Charity Statement of Recommended Practice 2005. The Statement of Financial Activities (SOFA) shows the gross income from all sources and the split of activity between restricted and unrestricted funds.

2011 was a year of collaboration, both internally and externally. Within Seafarers UK, we switched on our new finance system at the start of the year and cleansed and improved the effectiveness of our Customer relationship Management (CRM) system, towards the end of the year. These measures have brought together an improved communication between the Fundraising and Finance departments, improved financial reporting and marketing to our supporters. We have also continued the expansion of the amount of work we produce in the Finance Department for other organisations. See grants and administration section below. The Investment Managers and pension scheme were both changed in April 2010 and we now have a full years activity from the Investment Managers. As can be seen from pages 37-38, they have performed very well considering the global economy. The pension scheme has resulted in an increased membership, to over 50% of the staff now in the scheme. Voluntary income and activities for generating funds jointly raised ÂŁ1,834k in 2011 and with authorised grants of ÂŁ2,499k; once again every penny given to Seafarers UK makes it directly to the recipient charity, with interest!

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Financial Review: 2011 (continued) Performance against objectives Details of who we are and what we do can be found on pages 4-5 of this report. To assist us in achieving these aims, Executive Management produces an annual business plan with specific targets; the main targets are shown below. Grants Authorised

The overriding target each year is to maintain grants at £2.5 million per annum. In 2011 we authorised £2,499k, higher than the £2,477k in 2010. We also assisted the Royal Merchant Navy School Foundation with a programme-related investment of £180k (see pages 8-13)

Grants and administration

Every year we assist other maritime charities, organisations and groups by providing access to our pan-sector systems and staff. In 2011 we assisted COBSEO in the application to the BIG Lotto for £35 million and subsequently set up of the Forces in Mind Trust following the successful bid. This grant will enable the Forces in Mind Trust to focus on the difficult transition from the Armed Forces back into civilian life. In 2011 we continued to expand the financial assistance to other organisations. We produced the finances for Forces in Mind Trust, assisted them to produce a 20 year strategy as part of the BIG Lotto application and recruited staff and gave human resources assistance to both COBSEO and Forces in Mind Trust. In early 2012 this has continued with the transfer of the finance administration and staff from the Maritime Charities Funding Group.

In 2011, we hoped to improve the income to cost ratio from 35.7% but with the decrease in the voluntary income and activities for generating funds the ratio for 2011 was 40.2%, but still contributing £1,838k to charitable activities and governance costs. For 2012 it has been agreed that the income to cost ratio will continue as a management indicator but with the current product mix, including the administrative assistance to other organisations, the FACE (Fundraising and Administration Costs to total Expenditure) ratio better reflects our charitable aims. This ratio was 27.9% in 2011, compared to 26.2% in 2010. Our aim is to keep within 25%-30% in the short-term.

Incoming Resources

It can be seen from the Statement of Financial Activities (SOFA) overleaf that total incoming resources for 2011 were £3.07 million compared with £3.03 million in 2010, representing an increase of 1.6%. Voluntary income at £1.47 million was £218k lower than in 2010; this was mainly due to the transfer of SABS in July 2010 to the Royal Marines and Royal Navy charities, which had contributed £160k in that year, but the decrease also reflects lower donations at events. Legacies did increase both in terms of average valuation and total received. Generating Funds, namely events, was down £3k due to fewer participants. The investment portfolio was transferred to new managers in April 2010, this decreased the investment income during 2010 as the transfer was completed but income is now back to a similar level seen 2009. Investment income was £1.12 million in 2011 and £0.95 million in 2010 and £1.09 million in 2009. Income from charitable activities increased by £96k due to the recharges to other organisations.

Charitable Income and Expenditure

Increasing the surplus from charitable fundraising helps Seafarers UK to increase grants and assistance to others. This requires us to monitor each major event or groups of income, and also to reduce expenditure where possible.

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2011

2010

2009

2008

2007

(£’000)

Total cost of generating funds TOTAL RESOURCES EXPENDED

1,236

1,081

993

1,007

961

4,437

4,127

4,215

4,128

4,054

FACE

27.9%

26.2%

23.6%

24.4%

23.7%

Resources Expended

As in previous years, we continue to focus on reducing expenditure, although in 2011 expenditure increased from £4.13 million to £4.44 million. This was due to increases in three sections. The first was the costs of managing investments which rose from £212k to £368k; this was due to Managers fees being included for a full year compared to 2010 where the fees commenced from April. Governance increased with additional staff time being recognised through improved recording on the new finance system and charitable activities increased from £2,920k to £3,039k, an increase of £119k, which are the costs associated with charging other organisations (see what our grant making achieved pages 8-13).

In 2011, we hoped to improve the income to cost ratio from 35.7% but with the decrease in the events donations the ratio for 2011 was 40.2%, still contributing £1,838k to grants, compared with £1,945k in 2010. For 2012 it has been agreed that the income to cost ratio will be used as a management ratio but with the current product mix, including the increasing charitable income, the FACE (Fundraising and Administration Costs to total Expenditure) ratio better reflects our charitable aims. This ratio was 27.9% in 2011, an increase of 1.8% on 2010 ratio of 26.2%. Our aim is to achieve 25.0% by 2015 but remain with the 25%-30% in the short-term.

Costs of Generating Funds

The costs of generating funds increased during the year from £1,081k in 2010 to £1,236k in 2011. This was mainly due to an increase in investment costs. The resulting cost ratios are seen in the table above.

Cost Ratios of Generating Funds

The table shows the respective FACE (Fundraising and Administration Costs to total Expenditure) ratios for the charity since 2007. FACE is generally used to measure efficiency of charities and a ratio of less than 30% is our aim. Increasing the surplus from charitable fundraising helps Seafarers UK to increase grants and assistance to others. This requires us to monitor each major event or groups of income, and also to reduce expenditure where possible.

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Financial Review: 2011 (continued) Charitable Activities

Seafarers UK operates as an umbrella charity awarding grants to other charities across the whole spectrum of the maritime sector. We serve the three main seafaring constituents, namely the Royal Navy and Royal Marines, Merchant Navy and Fishing Fleets. Grants are prioritised according to need and without regard of the totals for or proportions between each constituent sector. We have targeted five specific categories of beneficiary that we seek to help through our grant making activities. These comprise: elderly and ex-seafarers and their dependants, the families and dependants of serving seafarers, serving seafarers and maritime youth groups as well as promoting maximum efficiency in the maritime charity sector. A comprehensive analysis of all grants awarded can be found on pages 12-13. We were pleased to award grants to the sector totalling £2,499k during 2011 which is £21k more than the £2,478k awarded in 2010.

Investments

With investments our overall strategy is to maintain the real capital value, whilst contributing 4% of the rolling average market value to grants. In 2011 our investments market valuation reduced by £832k after an additional drawdown of £1,250k to fund the grants programme. The overall Investment valuation decreased in market valuation from £38,376k to £37,544k, a decrease of 2.2%. The asset allocation as at 31 December 2010 shows 60.1% in equities, 33.4% in fixed interest securities 4.3% in investment properties and 1.7% in cash (see note 14 to the accounts) and £130K (0.5%) as a programme-related investment to RMNSF. Investment income rose from £951k to £1,124k.

Investment Manager Performances:

Ruffer LLP operate an absolute return policy and aim to preserve capital and produce real returns greater than return on cash, after fees. Since inception (April 2010) the portfolio has produced a total return of 8.9% and 2.1% in the last twelve month. Veritas Asset Management (UK) Limited are required to protect and grow the real value of capital over the longer term and to produce a return of RPI plus 4% per annum over a rolling period of 5 to 10 years. Since inception (April 2010) the portfolio has produced a total return of 9.1% on a RPI of 7.5% and 2.4% in the last twelve month on an RPI of 4.8%. We also have a private equity fund, where funds are invested in new ventures; we plan to let this investment run its natural course. This is now in its sixth year and produced a net income of £104k and a market valuation increase of £230k, a return of 7.8% on 2011.

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Statement of financial activities for the year ended 31 December 2011

Note

Incoming resources Incoming resources from charitable activities Voluntary income Activities for generating funds Investment income Charitable Activities

2 3 4 5

Unrestricted Funds (£'000)

Restricted Funds (£'000)

Endowment Funds (£'000)

2011

2010

Total Funds (£'000)

1,412 368 950 116

54 — 174 —

— — — —

1,466 368 1,124 116

1,684 371 951 20

2,846

228

—

3,074

3,026

6 7 8

358 510 368 1,236

— — — —

358 510 368 1,236

361 508 212 1,081

Charitable activities Supporting older and ex seafarers Supporting seafarers' dependants and family Supporting seafarers of working age Supporting maritime youth groups Improving Efficiency Total cost of charitable activities

9 9 9 9 9

1,104 599 745 118 243 2,809

83 133 11 2 1 230

— — — — — —

1,187 732 756 120 244 3,039

1,247 822 647 150 54 2,920

Governance Costs

162

—

162

126

4,207

230

—

4,437

4,127

(1,361)

(2)

—

(1,363)

(1,101)

(161) 360 (521) (322)

(6) 13

(24) 55

(191) 428 (521) (284)

2,660 2,487 (1,513) 3,634

Net movement in funds

(1,683)

(1,647)

2,533

Reconciliation of Funds Total funds brought forward Total funds carried forward

34,262 32,579

1,265 1,270

5,772 5,803

41,299 39,652

38,766 41,299

Total incoming resources Resources expended Costs of generating funds Costs of generating voluntary income Costs of activities for generating funds Costs of managing investments Total cost of generating funds

Total resources expended Net (outgoing) resources before transfers and other gains and losses Other recognised gains and losses Realised (losses)/Gains Unrealised Gains Withdrawal from Investments Net (losses)/gains on investment assets

14 14 14

The above results relate wholly to continuing activities There are no other gains or losses and as such a separate statement of Total Recognised Gains and Losses has not been prepared. There is no material difference between the results above and the historical cost equivalent.

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Balance sheet as at 31 December 2011

Note

Unrestricted Funds (£'000)

Restricted Funds (£'000)

Endowment Funds (£'000)

2011

2010

Total Funds (£'000)

Fixed assets Tangible assets

2,117

—

2,117

2,153

Investments

30,471

1,270

5,803

37,544

38,376

32,588

1,270

5,803

39,661

40,529

330 662

— —

330 662

188 1,504

992

—

992

1,692

(1,001)

—

(1,001)

(922)

(9)

—

(9)

770

32,579

1,270

5,803

39,652

41,299

2,987 — 29,592

— — 1,270

— — 5,803

2,987 — 36,665

2,987 812 37,500

32,579

1,270

5,803

39,652

34,262

1,265

5,772

Total fixed assets CURRENT ASSETS Debtors and prepayments Cash at bank and in hand

Total current assets Liabilities Creditors : Amount falling due within one year

Net current assets Net assets Property Revaluation Reserve Designated Funds Other Reserves Total Funds as at 31 December 2011 Total Funds as at 31 December 2010

41,299

The financial statements set out on pages 29-41 were approved by the General Council.

19 April 2012

Vice Admiral P.J. Wilkinson Chairman

J. Saunders-Watson Cdre B.W. Bryant Chairman of the Director General Finance Committee

19 April 2012

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Cash flow statement year ended 31 December 2011

Note

2011

2010

Total Funds (£'000)

Fixed assets Net cash outflow from operating activities Returns on investment and servicing of finance Capital expenditure and financial investments

1 2 3

(2,510) 1,124 544

(1,927) 951 1,474

(Decrease)/Increase in cash in the year

(842)

498

Cash at bank and in hand at 1 January Cash at bank and in hand at 31 December

1,504 662

1,006 1,504

(Decrease)/Increase in cash in the year

(842)

498

Net (outgoing) resources Investment income Interest receivable Rental income Depreciation — fixed assets (Increase)/Decrease in debtors and prepayments Settlement on pension provision (Decrease)/Increase in pension provision Increase in creditors

(1,363) (792) (273) (59) 40 (142) — — 79

(1,101) (603) (293) (55) 35 157 (54) (74) 61

Net cash outflow from operating activities

(2,510)

(1,927)

792 273 59

603 293 55

1,124

951

(4) (5,650) 6,198

(42) (46,239) 47,755

544

1,474

1 Reconciliation of net outgoing resources to net cash inflow from operating activities

2 Returns on investments Dividend income received Interest received Rental income received Net cash inflow from returns on investments 3 Capital expenditure and financial investments Purchase of tangible fixed assets Purchase of fixed asset investments Sale of fixed asset investments Net cash (outflow)/inflow from capital expenditure

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Notes to the accounts year ended 31 December 2011 1 2

ACCOUNTING POLICIES VOLUNTARY INCOME

ACTIVITIES FOR GENERATING FUNDS

INVESTMENT INCOME

COSTS OF GENERATING VOLUNTARY INCOME

8 9 10

INCOME FROM CHARITABLE ACTIVITIES

COSTS OF ACTIVITIES FOR GENERATING FUNDS COSTS OF MANAGING INVESTMENTS CHARITABLE ACTIVITIES GOVERNANCE COSTS

INFORMATION REGARDING EMPLOYEES AND TRUSTEES

TANGIBLE ASSETS

12 14

PENSION OBLIGATION INVESTMENTS

DEBTORS AND PREPAYMENTS

TOTAL FUNDS

CREDITORS FALLING DUE WITHIN ONE YEAR SUBSIDUARY UNDERTAKING RELATED PARTIES

1 Accounting Policies

Basis of Accounting

The financial statements have been prepared in accordance with the requirements of the Accounting and Reporting by Charities: Statement of Recommended Practice (Revised 2005) in accordance with the Charities Act 1993, with applicable Accounting Standards and the other relevant legislative requirements. The financial statements have been prepared under the historical cost convention as modified for the revaluation of freehold properties and investments to market value.

Fund Accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the objects of the Fund in accordance with its Royal Charter. Restricted funds can be used only in accordance with the charitable objects specified in each fund’s establishing constitution. The purpose of each restricted fund is set out in the notes to the financial statements. The costs of administering these funds are charged to each restricted fund. Endowment funds’ can only be used in accordance with the charitable objectives specified in each fund’s establishing constitution. Any gains or losses arising from the portfolio are included in each endowments fund. Income raised through investment income is reflected in a corresponding restricted fund. The purpose of each endowment fund is set out in the notes to the financial statement.

Incoming Resources

All incoming resources are included in the Statement of Financial Activities (“SOFA”) when the Fund is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the Fund being notified of an impending distribution where the amount is quantifiable, or the legacy being received. Donated goods and services are included at the value to the Fund, where material, and the value can be quantified and a third party is bearing the cost. No amounts are included for services donated by volunteers.

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Notes to the accounts continued D

Resources Expended

All expenditure is accounted for on an accruals basis and classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to a particular category they are allocated to activities on a basis consistent with the use of the resources. Premises overheads are allocated by reference to space utilisation and other overheads on the basis of staff numbers. 1 Costs of generating funds are those costs incurred in seeking voluntary and legacy income. 2

Charitable activities This includes all expenditure (including grants which are recognised as a liability once the relevant committees have approved payments) directly related to the objects of the Fund and comprises the following:

Supporting OLDER and Ex-SEAFARERS

Supporting SEAFARERS’ DEPENDANTS AND FAMILIES SUPPORTING SEAFARERS OF WORKING AGE SUPPORTING MARITIME YOUTH GROUPS

IMPROVING EFFICIENCY WITHIN tHE MARITIME SECTOR

3 Governance costs These costs include the costs of governance arrangements which relate to the statutory compliance and strategic running of King George’s Fund for Sailors as opposed to the direct management functions inherent in generating funds, improving efficiency within the maritime sector and administering the grants award programme. This includes such items as internal and external audit, legal advice for trustees and costs associated with constitutional and statutory requirements. 4

Support costs Support costs represent the staffing and associated costs of finance and general administration. They are allocated to charitable activities, fundraising activities and governance in proportion to the respective time spent by staff on these activities.

Fixed Assets and Depreciation

All assets costing more than £1,000 are capitalised and included at valuation plus any incidental expenses of acquisition. Property is re-valued every four years. Other fixed assets are valued at cost. Depreciation is provided on all fixed assets, from the day of acquisition, at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows: Freehold Buildings

Fixtures and Fittings

Motor Vehicles

25%

Office Equipment

10% 15%

Computer Equipment

20%

Freehold land is not depreciated.

Investments

UK freehold land and buildings held as an investment are included in the accounts on the basis of professional valuations made every four years. Investment freehold plots of land held in the Bahamas are stated at valuation (on the basis of local real estate agents). Other investments are stated at market value at 31 December. Unlisted investment are held at the most recent valuation available. The SOFA includes the net gains and losses arising on revaluations and disposals during the year.

Pension Costs

The Fund operates a defined contribution scheme with the Aviva PLC for employees who choose to participate in the scheme. Participating staff are required to contribute a minimum of 5% of basic salary to which the Fund will contribute a further 7.5% of their basic salaries plus an amount equivalent to the reduced liability of Employer’s National Insurance. Contributions are recognised in the SOFA, in the year they were incurred.

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Notes to the accounts continued 2 Voluntary Income

Donations Legacies

2011

2010

(£’000)

453 1,013 1,466

806 878 1,684

3 Activities for generating funds

Events Advertisting Charges to other organisations Corporate Sponsorships Trading

2011

2010

(£’000)

296 17 20 32 3 368

314 14 — 43 — 371

In common with many other charities of similar size and organisation, a proportion of voluntary income is derived from events and flag days which cannot be fully controlled until it is recorded in the accounts. The General Council and Management make every effort to ensure that all such sums are properly accounted for and, in their opinion, this does not constitute a significant uncertainty in the preparation of the accounts

4 Investment income

Dividends Interest Rental income

2011

2010

(£’000)

792 273 59 1,124

603 293 55 951

5 INCOME FROM CHARITABLE ACTIVITIES

Re-charges to other organisations

2011

2010

(£’000)

116 116

20 20

Income from Charitable activities are charges to unrelated organisations who contribute to the Maritime Charity Sector, the re-charges are mainly salary costs but also include expenses incurred on their behalf. The charges to other organisations are for Human Resources and Financial services. The staff costs associated with charitable activities were £157k in 2011 and are included in the support costs in note 8. These costs are not known for 2010.

6 Costs of Generating Voluntary Income

Donations Legacies

Support costs included in above figures

2011

2010

(£’000)

323 35 358

307 54 361

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Notes to the accounts continued 7 Costs of activities for generating funds

Events

2011

2010

(£’000)

510 510

508 508

Support costs included in above figures

8 Cost of managing investments

2011

2010

(£’000)

Cost of maintaining rental properties Investment Managers Fees/Other costs

16 352 368

16 196 212

Support costs included in above figures

The fund was transferred to Ruffer LLP and Veritas Asset Management (UK) Limited in April 2010. 2011 reflects the first full year of Investment Managers Fees.

9 Charitable activities

Charitable Grants Authorised Grants no longer required Net Grants

Older and ex-seafarers

Seafarers’ dependants and families

Seafarers of working age

Maritime youth groups

Improving efficiency

2011

2010

(£’000)

1,042 (2) 1,040

Support Costs

611 611

664 (1) 663

105 — 105

77 — 77

2,499 (3) 2,496

2,478 (2) 2,476 444

147

121

167

543

Total Charitable Activities — 2011

1,187

732

756

120

244

3,039

Total Charitable Activities — 2010

1,247

822

647

150

2,920

Grants authorised are shown by receiving organisations on pages 12 & 13 Support costs included in Charitable activities Staff Costs Premises Other costs Total support costs for charitable activities

2011

2010

(£’000)

286 116 141 543

296 83 65 444

The staff costs for 2011 include £157k for assistance to other organisations. The 2010 staff costs for assistance to other organisations have not been identified.

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Notes to the accounts continued 10 Governance costs 2011

2010

(£’000)

Auditors remuneration for audit services * AGM Trustee expenses Staff support costs Other support costs

25 16 6 93 22 162

23 16 9 57 21 126

*No non-audit fees were incurred or paid to PricewaterhouseCoopers LLP during 2011 or 2010.

11 Information regarding employees and trustees

2011 Number of full time equivalent employees during the year: Generating charitable income Charitable activities Governance

Staff costs comprise: Wages & Salaries

2010

FTE 10 9 1 20 (£’000)

FTE 11 8 1 20 (£’000)

796

675

Redundancies

—

Social Security

Change in pension provision

—

(54)

Money Purchase Pension scheme Contributions

931

732

Other Benefits

The Pension Trust Growth Plan was closed in 2010 and the liability crystallised. The amount paid to the Pension Trust was less than the amount accrued and thus a negative pension contribution in 2010. Seafarers UK now contribute to personal pension plans through Aviva. The number of employees paid over £60,000 during the year (salary plus taxable benefits excluding employer pensions contributions & redundancy payments) was:

£60,000 to £70,000 £70,000 to £80,000 £80,000 to £90,000

2011

2010

(£’000)

3 — 1

1 1 1

All four employees earning more than £60,000 participate in the Personal Pension Plan. The contributions were £4,907, £3,588, £4,980 and £7,636 from lowest to highest paid respectively, (2010 were £4,076 ,£3,663 and £7,031) were paid into the scheme during the year. The trustees neither received nor waived any emoluments during the year (2010 : nil). Trustees are entitled to reimbursement of expenses incurred on Fund business and expenses of £1,713 were paid to six trustees (2010 £1,314 paid to six trustees) which is mainly travel expenses. A further £3,000 was incurred on recruitment of trustees in 2011 (2010 : £7,246), £365 on subscriptions (nil : 2010) and Insurance Indemnity fees paid by Seafarers UK were £574 (2010:£683).

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Notes to the accounts continued 12 PENSION OBLIGATION

Seafarers UK operates a defined contribution scheme for all employees. The assets of the schemes are held in separate funds administered by independent pension providers. A FRS17 discolsure is not required. The total cost of pensions for the year incurred by Seafarers UK was £44k (2010 : £32k) reflecting the increased take up of the pension scheme by employees.

13 TANGIBLE assets Freehold land and buildings (£’000)

Total

Fixtures, fittings & equipment (£’000)

(£’000)

Cost or valuation at 1 January Additions at cost

2,100 —

125 4

2,225 4

Cost or valuation at 31 December

2,100

129

2,229

Accumulated Depreciation at 1 January

Charge for the year

112

Net Book Value at 31 December 2011

Accumulated Depreciation at 31 December

2,060

2,117

Net Book Value at 31 December 2010

2,080

2,153

All of the above fixed assets are held for charitable use. The above freehold land and buildings comprise those parts of 7 and 8 Hatherley Street, London occupied in carrying out the operations of the Fund. The remainder of the property is held as an investment. The whole property was revalued at £3.675 million as at 31st December 2009 by CRE Colliers, Chartered Surveyors and valuers, using the RICS appraisal and valuation Manual. Operational property, with an original historical cost of £456,000, was valued on an existing use basis and property held as an investment was valued at market value. £1.575 million of the value is included under investments (see Note 14). Management is not aware of any material changes since the last valuation.

14 Investments 2011

2010

(£’000)

Market Value at 1 January Additions at Cost Sales at Book Value Withdrawal from Investments Change in Market Value of Non Property Investments Market Value at 31 December

38,376 5,650 (6,198) (521) 237 37,544

36,258 46,239 (47,755) (1,513) 5,147 38,376

Historical Book Value at 31 December

35,083

34,222

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Notes to the accounts continued

Analysis of Market value at 31 December

2011

2011 (%)

(£’000) Interest Bearing Stocks and Deposits UK Stocks Non UK Stocks Deposits

6,776 5,765 620 13,161

18.0 15.4 1.7 35.1

2010 (£’000)

2010 (%)

4,959 6,047 536 11,542

12.9 15.8 1.4 30.1

Equities UK Overseas Programme-related investments Freehold Land and Buildings at Valuation Total

7,927

21.1

9,042

23.6

14,653

34.0

16,169

42.1

22,580

60.1

25,211

65.7

180

0.5

—

1,623

4.3

1,623

4.2

37,544

100.0

38,376

100.0

There were no individual holdings of investments which exceeded 5% of the total market value of investments at 31 December 2011 (nil : 2010). Freehold Land and Buildings includes flats held for investment purposes at 7 Hatherley Street which were valued in 2009 at £1.575 million (2006 £1.365 million) by Colliers CRE, Chartered Surveyors, using the RICS appraisal and valuation manual. The fund also holds six small undeveloped plots of land in the Bahamas which were bequeathed to them. The investment Property in the Bahamas was revalued as at 31 December 2008 at £47,647 and the management are not aware of any material changes since the last valuation.

15 Debtors and prepayments

Debtors Prepayments Amount Due from Subsidiary Undertaking Accrued income

2011

2010

(£’000)

63 45 4 218 330

21 21 4 142 188

16 Creditors falling due within one year

Grants payable Accruals Trade Creditors

2011

2010

(£’000)

804 166 31 1,001

816 30 76 922

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Notes to the accounts continued 16 Total FundS

Unrestricted Funds

Balance 1.1.11

Incoming resources

(£’000)

Gains/ Losses expenditure & transfers (£’000)

Balance 31.12.11

(£’000)

33,450

2,846

(3,717)

32,579

812

—

(812)

—

23 631 149 17 33 101 276 — — — 1,230

1 35 4 — 1 3 7 21 15 5 92

(24) (12) (3) (17) (4) (5) (5) (1) (14) — (85)

— 654 150 — 30 99 278 20 1 5 1,237

Restricted Income/(Expenditure) from Permanently Endowed Funds Endowed general purposes

—

(17)

—

Inglis fund (incorporating the van de Kasteele Scholarship Fund)

—

(19)

—

Designated Funds Restricted Funds John Forrest Holmes fund Royal Naval Officers fund The South Atlantic fund The Gulf trust Joyce Pratt legacy Beryl Joyce Threadkell legacy Sheila Constance Woods legacy Restricted to Scotland Event sponsorship Commonwealth Fund

Merchant Navy South Africa Scholarship Scheme

—

(5)

—

Royal Navy War Libraries Endowment Fund

—

(4)

—

South African Women's Auxiliary Service

(11)

Arthur T. Jeffress Fund

—

(60)

—

David Richards Trust

—

(18)

—

Henry Herbert Wills Fund

—

(4)

—

Total Permanently Endowed Funds

136

(138)

1,265

228

(223)

1,270

Endowed general purposes

760

—

764

Inglis Fund (incorporating the van de Kasteele scholarship fund)

806

—

811

Merchant Navy South Africa Scholarship Scheme

190

—

192

Royal Navy War Libraries Endowment Fund

200

—

201

Total restricted funds Permanently Endowed Funds

South African Women's Auxiliary Service

369

—

369

2,497

—

2,511

David Richards Trust

741

—

745

Henry Herbert Wills Fund

209

—

210

5,772

—

5,803

41,299

3,074

(4,721)

39,652

Arthur T. Jeffress Fund

Total Permanently Endowed Funds Total Funds

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Notes to the accounts continued 17 Total Funds (continued) The purpose of each Restricted and Endowment Fund is as follows:

Restricted Funds John Forrest Holmes Fund

To further the education of children keen to make a career at sea

Royal Naval Officers’ Fund

To assist officers of the Royal Navy in need or distress

The South Atlantic Fund

To meet the needs and distress of those seafarers who served during the South Atlantic conflict

Joyce Pratt Legacy

To assist Air Sea Rescue

The Gulf Trust

To relieve financial need, sickness, distress, disability of seafarers and their dependants as a consequence of involvement in the Gulf conflict

Beryl Joyce Threadkell Legacy

Funds made available for the Felixstowe Committee

Sheila Constance Wood legacy

To assist Naval Officers' Widows

Restricted to Scotland

To assist in Scotland

Event Sponsorship

To assist with the cost of hosting or running an event

Commonwealth Fund

Funds available in the Commonwealth

Endowment Funds Endowed General Purposes Inglis Fund (incorporating the Van de Kasteele Scholarship Fund)

To relieve sickness, poverty and distress of seafarers

}

Merchant Navy South Africa Scholarship Fund Royal Naval War Libraries Endowment Fund South African Women’s Auxiliary Service Arthur T. Jeffress Fund David Richards Trust Henry Herbert Wills Fund DESIGNATED FUNDS

}

To further the educational and future career needs of seafarers’ children

To assist officers and men of the Royal Navy., the Merchant Navy and the fishing fleet in need or distress

Designated Funds are indicative future grant payment given to grant applicants. The grants are not approved and will require approval from Seafarers UK trustees before becoming authorised.

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Notes to the accounts continued 18 Subsidiary Undertaking Seaservers Limited, incorporated in England and having an authorised share capital of £100 (issued share £2), is a wholly owned subsidiary of the Fund through which Christmas cards and other goods are sold. The company’s financial year ends on the 31 March and profits are paid to the Fund as and when appropriate by way of Gift Aid donation. The company broke even in the year ended 31 March 2011 (2010 a loss arose of £114) after charges of £250 (2010: £250) made by the Fund. At 31 December 2011, £3,870 was owed on current account from Seaservers Limited (£3,926 in 2010 was owed from Seaservers Limited). The accounts of Seaservers Limited have not been consolidated into these financial statements on the grounds of immateriality. A summary of the unaudited results of Seaservers Limited for the year ended 31 March 2011 is shown below; the Company is entitled to exemption from statutory audit under section 249 of the Companies Act 1985.

2011

2010

(£’000)

Turnover Cost of Sales and administration expenses Profit on activities before Gift Aid

3 (3) —

3 (3) (2)

Gift Aid Payment

—

Retained Profit for the year

—

(2)

Current assets

Net assets

Summarised Balance Sheet at 31 March 2011

19 Related Parties Some members of the General Council are trustees of charities to which the Fund makes grants. The Grants Distribution Committee’s procedures require all such interests to be declared and for these members to abstain from voting. Within the General Council no single member exercises control or influences over any particular grant approval. During 2011 nil costs (2010 : £2,650) to Pothecary Witham Weld in connection with legal services provided to the Fund, relating to the new Charter. A trustee, Mr T. B. Warren, is a partner in that firm. All figures are excluding value added tax. Seaservers Limited is the trading subsidiary of Seafarers, see note 18 for details of transactions between Seaservers Limited and Seafarers UK.

20 ASSISTANCE TO OTHER ORGANISATIONS At 31 December an amount of £52,664 was held in a bank account for Forces in Mind Trust, this is not included within these accounts (2010: nil). The amount owed to Seafarers UK at the end of the year was £25,733 (2010: nil).

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Independent auditors’ report to the Trustees of King George’s Fund for Sailors

We have audited the financial statements of King George’s Fund for Sailors (commonly known as Seafarers UK for the year ended 31 December 2011 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Respective responsibilities of trustees and auditors

As explained more fully in the Trustees’ Responsibilities Statement set out on page 23, the trustees are responsible for the preparation of financial statements which give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the charity’s trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 144 of the Charities Act 2011 and regulations made under those Acts (regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and Regulation 24 of The Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and nonfinancial information in the annual report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements In our opinion the financial statements:

◗ ◗ give a true and fair view of the state of the charity’s affairs as at 31 December 2011 and of its incoming resources and application of resources and cash flows, for the year then ended; ◗ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ◗ ◗ have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and regulation 8 of The Charities (Accounts and Reports) Regulations 2008.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) and Charities Act 2011 require us to report to you if, in our opinion:

◗ ◗ the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or ◗ proper accounting records have not been kept; or ◗ the financial statements are not in agreement with the accounting records and returns; or ◗ we have not received all the information and explanations we require for our audit.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 19 April 2012 PricewaterhouseCoopers LLP is eligible to act, and has been appointed, as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and section 144(2) of the Charities Act 2011.

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2011 ANNUAL REPORT & REVIEW seafarers UK