Seafarers UK is the leading maritime charity that supports and promotes the many organisations that look after seafarers in need across the Merchant Navy, Fishing Fleets, Royal Navy and Royal Marines, together with their families.
the leading charity for seafarers in need
Annual Report 2012
Chairman’s Message . . . . . . . . . . . . . . . . . . . 1 Objectives & Activities. . . . . . . . . . . . . . . . . . 2 Achievements & Performance . . . . . . . . . . 6 Fundraising & Communications . . . . . . . 12 Structure, Governance. . . . . . . . . . . . . . . . . 16 & Management Financial Review . . . . . . . . . . . . . . . . . . . . . . 21 Financial Statements. . . . . . . . . . . . . . . . . . 25
Annual Report 2012 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.
Message from the Chairman
Vice Admiral Peter Wilkinson CB CVO BA
What a wonderful year to be Chairman of a truly national charity, not just the Olympics and the Diamond Jubilee, but also the commemorations of the 30th anniversary of the South Atlantic conflict at the Memorial Chapel at Pangbourne and in the Guildhall in Plymouth – and a moving Drumhead service on The Hoe on Armed Forces Day in the presence of the Earl of Wessex and the Prime Minister. I hope that you also share a feeling that Seafarers’ Awareness Week is on the very brink of achieving a sense of momentum that will raise its profile dramatically in 2013. There will also be more opportunities for reflection with commemorative events planned for Liverpool in May, to acknowledge that great seafaring city’s contribution to the hard fought and hard won Battle of the Atlantic 70 years ago.
And from one important seafaring city to another, and to Southampton’s magnificent new museum. With an opening coinciding with the centenary of the sinking of the Titanic it is touching to realise that in one room the floor is a map of the city, each dot on it representing a household affected by the tragedy – over 500 in all – and five years before King George’s Fund for Sailors was founded. As seafarers we are all aware of tragedy and do our best to avoid it, but for those who are involved, who are left bereaved, or who are injured and unable to work, the need for support is definitely there and I am very grateful to you all for your help, whether it is fundraising, donating generously, being prepared to leave a legacy or just trying to put across the seafaring message in our island nation still afflicted by sea blindness. The trustees and executive work closely
together to ensure that Seafarers UK remains in good shape to maximise the support we give to our beneficiaries. We are actively encouraging a new generation of merchant navy supporters, private trusts and corporate donors. To do so effectively, we need to present ourselves as a charity that is using its financial reserves to best advantage, not just sitting on its money in the bank. We also have to make an educated guess at how the numbers of beneficiaries may reduce in the future, balanced against ever increasing costs of care. Campaigning, fundraising, above all focusing on need – your charity has lots to do in these austere times. I am sure that as we begin to look to our own centenary, I express the thanks of us all to the Director General and his staff, who work so hard to ensure that Seafarers UK will remain the leading charity for the whole of the UK’s maritime community.
Introduction from the Director General
Commodore Barry Bryant CVO RN
Last year I welcomed you to a somewhat slimmer Annual Report than of late, and this year, in tune with the nation’s on-going austerity, we’re planning to lose even more weight not least by squeezing me onto the same page as the chairman. Nonetheless, this Report contains the vital and largely statutory information that we provide to convince everyone from the Charity Commission to our loyal supporters that we run a tight ship. We make money wherever we can and we continue to strive for ongoing efficiencies, ensuring that we live up to the charitable objects enshrined in our Royal Charter as effectively as possible.
from financial reserves to maintain our grants total at £2.5m, and we believe that we should continue this strategy while so many seafarers remain in need. In the first full year of operation, our new finance software proved its worth by allowing us to get a much more detailed overview on every aspect of collection and spending. This has guided more objective management decisions, as well as revealing the true charitable cost of our several wider activities focused on varied educational issues and maritime campaigning. We continue to believe that our unique cross-sector role gives us both the opportunity and the duty to provide coordination and guidance in undertakings which would be beyond the remit of single-issue organisations.
Given the harsh times in which we live, I believe 2012 can be regarded as a satisfactory year in many respects. We stuck to our promise of drawing down
In pursuit of this mission, we have expanded our maritime awareness campaign and will continue to do so in 2013, when we expect to be joined by the Sea
Cadets, naval associations, port welfare committees and other groups in a truly nationwide Seafarers Awareness Week. Similarly we have extended our liaison with several international organisations such as the International Maritime Organisation, the ITF Seafarers Trust and the new International Seafarers Welfare Assistance Network, for if we are to be perceived as the UK representative of a global maritime welfare network, we need to understand exactly what that responsibility entails, even though our actual beneficiary base is confined to the UK and Commonwealth. Finally, in our 95th year but in the face of constantly changing welfare requirements – think RN redundancies, the introduction of a seafarers’ Bill of Rights (MLC2006), and the reduction in State benefits – we are determined to provide the steadfast leadership envisaged by our Founding Fathers. The task remains constant. 2012 ANNUAL REPORT & REVIEW
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OBJECTIVES & ACTIVITIES
Who we are and what we do Seafarers UK is the leading maritime charity that supports and promotes the many organisations that look after seafarers in need across the Merchant Navy, Fishing Fleets, Royal Navy and Royal Marines, together with their families, in the UK and the Commonwealth. Key aims 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.
Royal Charter 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 the 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 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
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and trusts promoting sailing activities for the disabled. 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 Charities Act 2006 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.
The relief of those in need by reason of youth, age, ill-health, disability, financial hardship and other disadvantages.
The promotion of the efficiency of the Armed Forces of the Crown.
The charity also has 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.
Our key aims are to improve the quality of life for seafarers and their families by securing more efficient aid and support for them, and ensuring the effective distribution of funds to those charities that help them, so as to assist as many people as possible.
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OBJECTIVES & ACTIVITIES
Our vision As anyone who has navigated a ship through thick fog will attest, lack of vision can lead to slow and dangerous progress. Unfortunately, clear blue skies are often a rarity for the navigator and, similarly, our charitable pilotage is frequently beset by the clouds of economic gloom. Nonetheless, without stretching this nautical analogy too far, we take notice of whatever charts, radars and navigational aids there may be to improve our vision as we plot our course for the future. Our assistance comes from ongoing demographic and financial research, long experience of the maritime charity sector, and constant liaison with donors, colleagues and beneficiaries. We have an agreed long-term vision based on five clear points:
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Remaining ‘the leading charity for the UK’s maritime community’.
Supplying a strong and consistent grant-making service to the sector by means of intensive fundraising and the intelligent use of financial reserves.
Adopting a stronger central position in the maritime charity sector, not least as Chair of the Maritime Charities Funding Group (MCFG), and providing a focus for campaigning and managing generic services and projects.
Remaining the maritime link with the Confederation of Service Charities (COBSEO),
Veterans Scotland and other pan-sector bodies.
Providing a focus for maritime research and the link with the proposed Forces in Mind Trust (FiMT) and MCFG research bases and other external data sources.
These central tenets are considered by the General Council of Trustees each year and, while remaining within the Objects of our Royal Charter, are amended and updated as changing external circumstances dictate. Similarly, core strategies are agreed and adopted to achieve these aims, and these are presently:
To promote and support the concept of the ‘UK Maritime Community’ as a single entity, bound by the unique nature of service at sea, and to work as a Lead Partner with Sea Vision.
To ensure that fundraising, grant distribution and campaigning are advised by the best available objective research, and to make this research available to others.
To act as the focus for maritime campaigning by leadership and coordination of Seafarers Awareness Week and liaison with other organisations.
To ensure that the evolution of the Maritime Charities Funding Group recognises Seafarers UK’s unique position as the only organisation with the ability to span the entire sector, while allowing others to operate at maximum capacity and influence within their individual objects.
“Where we believe a sector-wide approach is necessary, or where the greatest influence can be exerted by a united front, it will be our duty to provide that coordination and leadership, harnessing the wisdom and resources of others.”
To promote, and influence where possible, the most efficient evolution of all other sector organisations.
To build a quality-assured staff and administrative structure able to support both internal progression and the supply of external services.
To ensure the skills and experience-based General Council operates at maximum effectiveness, advising on the execution in their specific areas.
In the daily cut and thrust of fundraising and marketing, it can sometimes be forgotten that our primary aim is not the position or success of Seafarers UK per se, but to improve the quality of life of all those past and present seafarers and their dependants who fall under our auspices. If other organisations are better placed to achieve some aspects of this, we shall not stand in their way. We will take every effort to coordinate fundraising initiatives and obviate duplication, conserving sector resources wherever we can. Nonetheless, where we believe a sector-wide approach is necessary, or where the greatest influence can be exerted by a united front, it will normally be our duty to provide that coordination and leadership, harnessing the wisdom and resources of others. This can work on a wide national or even international stage, or equally on a smaller canvas. For instance, it has long been our ambition to present the Merchant Navy and its people as more of a single entity, rather as the Royal Navy, bound by the common themes of commercial seagoing and its dangers as supposed to being divided by company or trade sector. Our recent partnership with the Merchant Navy Welfare Board to create the Merchant Navy Fund has gone some way to
achieving that ambition, with the willing assistance of the Merchant Navy Association, the Trade Unions, Trinity House and others, each being seen to contribute one or more vital elements in a united mercantile welfare front. As suggested above, if we are to remain loyal to our Charter but react to changing circumstances, vision and strategies must evolve over time. We constantly ask ourselves where the charity needs to be in ten, twenty or even fifty years’ time. Given that many of our present beneficiaries served at sea half a century ago, it is not an unreasonable question. Nonetheless, with a Royal Navy now reducing to some 30,000 personnel and the combined merchant and fishing fleets not much bigger, our task in 2063 is likely to be somewhat reduced. Our problem is how to get there successfully. Fundraising will continue apace, legacy income will be strongly encouraged, and our existing financial reserves must be both invested and used wisely to ensure a constant standard of care across the generations. There will certainly be a far smaller number of maritime charities, with consolidation and intelligent use of their existing capital assets needing constant attention. Perhaps the biggest single factor will be the state of the nation – there will undoubtedly be several economic peaks and troughs over the next five decades, and the currently overworked phrase ‘the rainy day is here!’ will be heard once more. We must be ready to react, then as now, with both long- and short-term strategies to navigate this three-dimensional maze. We shall only achieve that by ensuring that everyone pulls in the same direction: supporters, trustees, collegiate charities, staff, charity partners and other maritime organisations, setting aside our differences and working together towards that primary aim of a better quality of life for all our seafarers.
2012 ANNUAL REPORT & REVIEW
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Achievements and Performance
What our grant making achieved In 2012, we received 88 applications for grants totaling £4,236,203. We declined 15 requests for funding and awarded £2,508,667 to 67 organisations (73 grants). The average size of grant was £34,365.
Overview This year, whilst continuing to support organisations that need our funds to continue to deliver a service to our beneficiaries, we have developed a more ‘project’ based approach to how we allocate our funds. Years ago, Seafarers UK supported charities with a general grant which left the decision of how best to use that money to the charity. Today, in a world of scarce resources and many more requests than available funds we are seeking more detail on precisely what our grant will be spent on, and what service or activity the money will go to support. Recipient Charities and grant making organisations such as Seafarers UK often talk about the ‘outcomes’ of a grant when all we really mean is what difference will the grant make to the lives of those at the receiving end of the service. For example this year we again supported the Seamen’s Hospital Society in delivering a money advice and debt counseling service through the Seafarers Advice and Information Line. The ‘input’ (a grant) pays for debt and advice workers and the ‘output’ is that the seafarers and their families approaching the service get help with advice on benefits and dealing with debt issues, and the outcome is (often) an improved quality of life.
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Capital Grants This year, there has been one substantial capital grant and that was to the Marine Society and Sea Cadets as a contribution towards the costs of replacing their main sail training ship, the TS Royalist. We support the Sea Cadets as we believe that they are helping to provide our next generation of seafarers. The current TS Royalist is over 40 years old and the cost of annual repairs and maintenance was reaching such a level that continuing to patch and repair was no longer viable. Although our grant towards the replacement of the TS Royalist was substantial (£200,000), we were able to obtain matched funding from corporate sponsors, only committing £100,000 from our own funds.
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. Broadly we must give our support to 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.’ All grants are awarded on the basis of need and we are the only grant-making charity in the seafaring community that works across the three maritime sectors i.e. Merchant Navy, fishing fleets and the Royal Navy and Royal Marines. This puts us in the unique position of being able to assess need and priorities across the whole maritime community. At the end of 2010, the General Council of Seafarers UK took the decision that in this time of economic difficulties we should aim to maintain our grant-making at previous levels by drawing down on reserves. There are
“In 2012 we awarded 26 grants (totaling £93,948) under the small grants programme from 31 applications.” many maritime charities who depend upon our funding to continue to deliver ‘on the ground’ services to current and ex-seafarers, their families and dependants. We are therefore pleased to report that after awarding grants totaling £2.478 million in 2010 and £2.499 million in 2011, we were again able to maintain this level of grantmaking in 2012 with grants worth £2.509 million.
the money fundraised in Scotland, on Scottish organisations. Organisations funded in 2012 include Cobhair Barragh, a day care centre for elderly seafarers on the Isle of Barra in the west, the Peterhead and District Fishermen’s Benevolent Fund, a fund supporting retired fishermen and their families in the east, and the Combat Stress’s clinical treatment centre in Ayr.
Partnerships
We are also very proud in this 70th anniversary year of the Battle of the Atlantic campaign to support the Russian Arctic Convoy Museum which promotes and encourages interest in, and care for, the wartime history of the Loch Ewe Area, North Atlantic and Arctic Convoys. The North Atlantic Fleet sailed from 1941 to 1945 from the UK to North Russian ports of Murmansk and Archangel to aid our Russian Allies. The Russian Convoys were called ‘the Suicide Missions’ by many of those men who sailed on them. Merchant ships with supplies and ammunition were escorted by British Royal Naval ships and aircraft carriers. During the war over 3,000 men perished in the waters of the North Atlantic. The village of Aultbea on the shores of Loch Ewe was designated HMS Helicon during the war and was the anchorage base for the Arctic Convoys from 1941-1945. Our grant is a contribution towards the costs of a veteran reunion planned for the spring 2013 and will be a way of honouring all the veterans. This grant has been made in conjunction with a grant from the Royal Naval Benevolent Trust; another example of Seafarers UK working in partnership.
We continue to work in partnership with Trinity House, the Seamen’s Hospital Society, the Merchant Navy Welfare Board, the Royal Navy & Royal Marines Charity (RNRMC) and most recently with ITF Seafarers Trust, and this has strengthened grant making in the maritime sector. A good example of our partnership working is demonstrated by our joint funding of the Sailors Children’s Society for £150,000. This charity is a national charity that assists families and children from Royal Navy, Merchant Navy and fishing backgrounds through their Family Support Scheme. Our joint and equal funding of this organisation with the RNRMC is a demonstration of good will between key funders of the maritime sector and we plan to look at more joint funding ventures going forward. Many of our grants support several different groups of beneficiary such as families and dependants, as well as current seafarers, older seafarers and ex-seafarers. Our grants range in size from the Shipwrecked Fishermen and Mariners Benevolent Trust at £250,000 down to £500 as a contribution towards the costs of the Annual Seafarers Service at Llandaff Cathedral in Cardiff. Of the 67 organisations supported during 2012, 8 received £100,000 or more totaling £1,320,555, and representing around 52% of our total grants budget for the year. At the other end of the scale, 26 organisations received grants of up to £5,000, and a review of our small grants programme has shown how relatively modest sums can make a tremendous difference to the work of many charities.
Scottish Grants We are pleased to report that once again we exceeded our commitment to spending the equivalent of
Small Grants In 2012 we awarded 26 grants (totaling £93,948) under the small grants programme from 31 applications. This is an increase from 18 grants awarded in 2011 (totaling £60,552) indicating that this programme is both popular and a valuable additional resource for maritime charities. Many of these grants can be classed as ‘matched’ funding. This approach encourages organisations to look at alternatives for funding rather than just relying on Seafarers UK, thus encouraging organisational sustainability and partnership working. This is something we are keen to continue to promote and we believe this programme will continue to see further growth in 2013.
2012 ANNUAL REPORT & REVIEW
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ACHIEVEMENTS & PERFORMANCE
Targeting areas of greatest need
Across the three maritime sectors we have identified five categories under the terms of our Royal Charter. These are identified below. 1. OLDER & EX-SEAFARERS
Twenty eight of our grants included an element of support for older and ex-seafarers and the total spend on this group was £928,967, the largest category of beneficiaries both by total awarded and number of organisations benefiting. The largest beneficiary charity, the Shipwrecked Fishermen and Mariners Royal Benevolent Society, received £250,000 for the year. The money provides help to Merchant seafarers, fishermen and dependants in need, with support ranging 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. Nautilus Welfare Fund received a grant of £178,250 towards their range of specialist housing, care and support services for retired seafarers and their dependants. Our grant will go to support the costs of accommodation at Mariners’ Park Care Home, a therapeutic physiotherapy service and an advice and case working project. The case working project started life as a Maritime Charities Funding Group (MCFG) funded trial looking at innovative ways of supporting ex-seafarers and their families through a casework and support service, embracing not only financial needs but also wider health and social care issues. A new feature of the proposed initiative is that the caseworker would be trained to provide ‘brief intervention’ on promoting health and wellbeing. It is also proposed that the
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caseworker works closely with SAIL, the telephone advice service, to ensure their expertise is utilised in complex benefit and debt situations. Our grant this year to the Royal Naval Benevolent Trust of £93,644 supports the work of the Trust with retired and ex-seafarers, their widows and dependants through a contribution towards the costs of electrically propelled vehicles and stair lifts and riser/recliner chairs. One other grant of note included £61,760 awarded to The Scottish Nautical Welfare Society to support needy elderly seafarers.
2. SEAFARERS’ DEPENDANTS & FAMILIES
This covers a wide variety of people in need with a spend in this category of £468,780. This year we have been able to support a new collaborative project – The Maritime Piracy Humanitarian Response Programme (MPHRP). This new organisation was established by the International Transport Federation Seafarers Trust to expand their work in India, Bangladesh, Pakistan and Sri Lanka. MPHRP is supporting the humanitarian aspects of seafarers and their families who have experienced a traumatic incident caused by piracy attack, armed robbery or being taken hostage. The MPHRP helps support the families in a variety of ways including liaising with the different authorities and industry partners to ensure the correct medical support and assistance is provided. We are very grateful to Associated British Ports, who donated £20,000 towards this project, demonstrating another strand of our partnership working between ourselves and commercial organisations who wish to support key maritime projects.
3. SEAFARERS OF WORKING AGE
In 2012 Seafarers UK spent £653,462 supporting seafarers of working age, across 22 organisations spread throughout the UK and Commonwealth. The welfare
“many maritime charities depend upon our funding to continue to deliver ‘on the ground’ services” needs of our current seafarers remain as important to us as ever, perhaps even more so in the current downturn. 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 will continue in 2013. 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 2012 we made a grant to support the work of the Mission to Seafarers. Although based in the UK, the Mission operates across the world and the grant will support the running and associated costs of their work in seven ports: Cardiff, Port Talbot, Felixstowe, Singapore, Limisol (Cyprus), and Tuticorin and Mangalore in India. This year we were able to award a grant of £117,000 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 in Northern Ireland, providing welfare provision for current and retired fishermen and their families. 2012 saw our grant to the Seamen’s Hospital Society continue its work to support the development of the Seafarers Advice and Information Line (SAIL), and we are pleased to be able to increase our grant to this organisation to enhance the levels of support particularly in the area of debt counselling.
4. MARITIME YOUTH GROUPS
It is fitting that in the year of our Children’s Appeal, Seafarers UK awarded £387,500 to youth organisations. Our main beneficiary was the Marine Society and Sea Cadets (MSSC), which was awarded £100,000 as a contribution towards their own grants fund which supports of over 360 separate UK Sea Cadet units. Grants range from providing security fencing, alarms and gates for individual Sea Cadet units, to general building maintenance, boats and associated equipment. Our Charter requires us actively to promote seafaring careers to young people and the MSSC fulfill this role through a national programme of structured training at its separate cadet units across the country. This grant
was in addition to the grant to support the replacement of their Training Ship Royalist. Additionally we supported young people looking to pursue a career in the marine sector though a grant to the UK Sailing Academy. This grant supports up to four three-year bursaries as part of the UKSA Yachting Cadetship programme specifically designed for those seeking to embark on a long term career on large yachts. It provides a structured route through the RYA scheme and beyond into MCA qualifications, with Cadets aiming to qualify as MCA Officer of the Watch (3000gt) at the end of the training programme.
5. IMPROVING EFFICIENCY
Seafarers UK is committed to working to improve the efficiency and effectiveness of the maritime grant making sector. To this end we made a grant to support the work of the Maritime Charities Funding Group, as well as continuing our support for the Confederation of Service Charities (COBSEO) and Veterans Scotland, in representing the voice of ex-service personnel living there.
How our grants are made
Ultimate responsibility for grant making rests with members of the General Council of Seafarers UK who have delegated the consideration and recommendation of grants to the Distribution Committee (the ‘Grants Committee’ as of 1 Jan 2013), the members of which are advised by the Director of Grants and External Operations. The final decision rests with General Council and it is after this meeting that grants are confirmed and announced to beneficiary organisations.
Monitoring and Evaluation of our grants
Seafarers UK, like many grant makers, relies on grant recipients telling us of any changes made to how the grant is spent or whether the grant actually achieved the outcomes it identified in the application. However from January 2013 we will be more proactive and will be piloting monitoring and evaluation processes. We will work closely with our beneficiaries to make sure that this evaluation produces valuable evidence of their work, whilst not being onerous to produce.
2012 ANNUAL REPORT & REVIEW
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Seafarers UK grant making 2012 how the grants were distributed TOTAL
£
Alabare Christian Care Centres Annual National Service for Seafarers in St Paul’s Cathedral Annual Seafarers Service in Wales Apostleship of the Sea Apostleship of the Sea Blind Veterans UK (St Dunstans) British Ex-Services Wheelchair Sports Association Broughton House Centres for Seafarers Charybdis Association Cobhair Bharraigh COBSEO Combat Stress – Ex-Services Mental Welfare Society Community Housing and Therapy Community Network Erskine Hospital Ltd Falkland Islands Memorial Chapel Trust Gardening Leave Handicapped Children’s Pilgrimage Trust Humber Seafarers Service ISAN – International Seafarers Assistance Network Joint Services Hosanna House Group 507 Kandla Seafarers Welfare Association Liverpool Seafarers Centre Lord Kitchener National Memorial Fund Manx Marine Society Marine Society & Sea Cadets (for units) Marine Society & Sea Cadets (T S Royalist) Maritime Charities Funding Group Maritime Piracy Humanitarian Response Programme Merchant Seamen’s War Memorial Society Mission to Seafarers National Gulf Veterans and Families Benevolent Association Nautilus Welfare Funds Navy is the Nation Conference Not Forgotten Association Officers Association Peterhead and District Fishermen’s Benevolent Fund Plymouth Drake Foundation
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Older and Seafarers’ Seafarers ex-seafarers dependants of working and families age £
£
£
Maritime youth groups
Improving Efficiency
£
£
15,000 — — 15,000 — — 500 250 250 — — — 500 500 — — — — 30,000 — — 30,000 — — 5,000 — — 5,000 — — 30,000 30,000 — — — — 12,000 — — 12,000 — — 25,950 25,950 — — — — 35,000 — — 35,000 — — 5,000 2,500 2,500 — — — 10,000 10,000 — — — — 2,000 — — — — 2,000 40,000 — — 40,000 — — 2,000 — — 2,000 — — 28,902 28,902 — — — — 25,000 25,000 — — — — 5,000 5,000 — — — — 5,000 — — 5,000 — — 5,000 — 5,000 — — — 5,000 — — 5,000 — — 50,000 — — 50,000 — — 5,000 — 5,000 — — — 4,992 — — 4,992 — — 11,120 1,120 100 9,900 — — 1,600 — 1,600 — — — 3,500 — 3,500 — — — 100,000 — — — 100,000 — 200,000 — — — 200,000 — 20,000 — — — — 20,000 67,000 — 67,000 — — — 31,000 22,570 6,256 2,174 — — 140,661 — — 140,661 — — 7,500 — 7,500 — — — 178,250 178,250 — — — — 3,940 — — — — 3,940 10,000 10,000 — — — — 50,000 — — 50,000 — — 5,000 5,000 — — — — 5,000 — — — 5,000 —
TOTAL
£
Queen Alexandra Hospital Home Queen Alexandra Hospital Home Queen Victoria Seamen’s Rest Retired Fishermen (South Shields) Royal Alfred Seafarers’ Society Royal British Legion Royal British Legion Poppy Factory Ltd Royal Commonwealth Ex-Services League Royal Liverpool Seamen’s Orphan Institution Royal National Mission to Deep Sea Fishermen Royal Naval Benevolent Trust Royal Naval Benevolent Trust Royal Navy and Royal Marines Children’s Fund Royal Seamen’s Pension Fund Russian Arctic Convoy Museum Sailors’ Children’s Society Scottish Nautical Welfare Society Sea Vision UK Seamen’s Hospital Society Shipwrecked Fishermen & Mariners’ Royal Benevolent Society Sir Oswald Stoll Foundation Somali Senior Citizens Club South Atlantic Medal Association (1982) South Atlantic Medal Association (1982) Spinal Injuries Association SSAFA – The Soldiers, Sailors, Airmen & Families Association SSAFA – The Soldiers, Sailors, Airmen & Families Association Tyne Mariners Benevolent Institution UK Sailing Academy Universal Christian Seafarers Welfare Association University of Exeter Veterans Aid Veterans Scotland West of Scotland Military Wives Choir TOTAL 2012 TOTAL 2011
Older and Seafarers’ Seafarers ex-seafarers dependants of working and families age £
£
£
Maritime youth groups
Improving Efficiency
£
£
25,000 25,000 — — — — 5,000 5,000 — — — — 21,854 21,854 — — — — 3,950 3,950 — — — — 30,000 30,000 — — — — 1,026 1,026 — — — — 48,000 — — 48,000 — — 16,400 16,400 — — — — 60,000 — 60,000 — — — 117,000 31,690 28,375 56,935 — — 93,644 24,735 43,289 25,620 — — 20,000 — — 20,000 — — 100,000 — 100,000 — — — 16,500 16,500 — — — — 13,270 13,270 — — — — 75,000 — 75,000 — — — 61,760 40,000 21,760 — — — 25,000 — — — — 25,000 121,000 60,500 12,100 48,400 — — 250,000 250,000 — — — — 20,000 — — 20,000 — — 10,000 10,000 — — — — 2,000 2,000 — — — — 5,000 5,000 — — — — 5,000 2,000 — 3,000 — — 25,000 — 25,000 — — — 12,418 — — — — 12,418 25,000 25,000 — — — — 82,500 — — — 82,500 — 4,780 — — 4,780 — — 1,600 — — — — 1,600 20,000 — — 20,000 — — 5,000 — — — — 5,000 4,550 — 4,550 — — — £2,508,667 £928,967 £468,780 £653,462 £387,500 £69,958 £2,498,643 £1,042,098 £610,760 £663,935 £105,000 £76,850
2012 ANNUAL REPORT & REVIEW
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Fundraising & communications
2012 was a hard fought but steady year for the Seafarers UK’s Fundraising and Communications functions – especially when considering the wider financial and voluntary-giving context. It was also a year of continued strategic and some structural change. Whilst our fundraisers and donors continued to match our beneficiaries in representing all parts of the maritime sector, there was an increased emphasis in 2012 on engaging and networking with commercial maritime companies and the trade bodies and maritime services firms that support them. This began to have an impact with more interest being shown in supporting us from a wider array of businesses including invitations to pitch to previously closed areas. All this provided much optimism for the future. In particular the fundraising team built a closer relationship with the cruise industry, with the hope of appealing directly to passengers in the future. There were some small scale breakthroughs in several challenge events, to be consolidated and widened in 2013. It was also a record breaking year by our fundraisers who took part in the London Marathon. Trust income improved and was earmarked for further growth in 2013. Regional activity and individual giving remained buoyant in most areas despite fears of a demographic decline, and it is hoped that this will continue as we encourage younger supporters to take up the cause. Demography is, however, likely to reduce the number of legacy givers in the future, and so it will be essential to continue to highlight to all our supporters the vital importance of this area to Seafarers UK’s fundraising and grant giving. A major push in Plymouth as part of the Armed Forces Weekend at the end of June helped reinvigorate relationships with a number of individuals, organisations and companies. This included BAE who sponsored a major civic reception held jointly
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by Seafarers UK and Plymouth City Council, with the involvement of our President. The latter half of the year saw the opportunity for a small restructure to produce an even more focused team for 2013, ready to face the challenges of an ever-changing spectrum of donors and fundraisers. And there is little doubt that the increased focus on campaigning in 2012, particularly with Seafarers Awareness Week, led to a greater industry appreciation of, and cooperation with, the charity.
Longer-term aims In striving to increase voluntary and fundraising income in support of the charity’s grant giving aims over the coming years, Seafarers UK will need to position itself in the minds of supporters and potential supporters as a charity that is not only dynamic, with stronger brand value and name recognition, but one that has a clearly communicated sense of vision and purpose and that supports and adds value to the maritime sector in its entirety. Seafarers UK’s aim, therefore, is to be clearly recognised as a supporter, a funder, an enabler and a leader - an organisation that helps any charity within the maritime sector to reach out more easily and effectively to those who haven’t thought about the sea, ships or seafarers before and gain their interest, advocacy and involvement. We will achieve this by focusing our fundraising, marketing and campaigning in particular around the welfare needs of individuals, as well as the contribution, roles, lives and stories of seafarers themselves; not forgetting the wider impact that the charity achieves in carrying out its charitable objectives beyond purely grant-giving. Key objectives in carrying out this work will be: a more focused approach to our ask; making fundraisers a central focus of ours; improved messaging and greater communications impact; greater dialogue with our beneficiaries; engaging more with corporates; tailoring approaches to Trusts and key relationships; targeting individuals better, and increased partnership
“A key issue is the need to better explain the unique nature of our long-term, sector-wide commitment to potential funders going forward, as well as our updated reserves policy.” and collaboration. Crucial to all this, though, will be the recognition of Seafarers UK as being a more professional, creative, responsive, politically astute and faster moving outfit.
Corporates and Trusts There is a real sense of potential building in this area with a newly focused team working to engage with corporates, trade bodies, City institutions, Trusts and Foundations alike during 2012. Some reasonable sized pitches were put to a number of firms during the year, where before such contacts and networks were not in place. The same is also true of the charity’s profile, with Seafarers UK having been promoted to attendees of a number of key events. This included being the charity partner for Seafish’s annual awards event, the Passenger Shipping Association’s annual dinner as well as the Association of Cruise Experts’ ‘International Cruise Week’. We also gained further exposure through participation in the annual Lord Donaldson Lecture and a major marine disaster recovery conference, both at Lloyd’s of London. Our expectation is that this will provide a strong platform in 2013 for engaging more with the City and maritime businesses in general. The development of a new Commonwealth Grants Programme during the year, and the seeking of feedback from a number of companies on its make-up, was helpful in enabling increased engagement with the commercial sector. It is hoped that this will solidify into increased donations and fundraising once the new programme has been formally launched in 2013. A number of firms supported this new initiative during 2012, in particular BP Shipping and Associated British Ports (ABP). There was continued strong support from numerous other shipping companies. Carnival continued to provide regular donations from on-board collections, but also made a major donation through the involvement of a large team in the London Marathon, fundraising £40,000 for Seafarers UK. BAE Systems sponsored our presence
in Plymouth across Armed Forces Weekend to the tune of £30,000, underwriting a major civic reception as well as engagement with the local community and veterans. NYK and Polestar showed further good support for ‘Nautical Friday’, respectively organising an inter-shipping company football tournament and a day of dressing up, games and food sales. And Rolls Royce, International Marine Transportation, Thomas Miller, Teekay and Maersk all supported Seafarers UK very generously through on-going donations and employee fundraising. And on the retail side, as at the end of 2012, Fuller’s exceeded £100,000 in donations from the sale of Seafarers Ale, which is a fantastic achievement and a partnership to be celebrated during 2013. Trust income was stronger than the previous year and towards the end of 2012 we put some dedicated resource in place for this income stream. With an increased emphasis on research and applications, Trust and Foundation income is expected to increase further in 2013. A key issue here, however, is the need to better explain the unique nature of our long-term, sector-wide commitment to potential funders going forward, as well as our updated reserves policy. Here we are now actively drawing down these funds on a yearly basis to support the increasing need in the maritime community during these harder economic times. In turn this is putting pressure on our ability to support beneficiary organisations on a longer term basis, without gaining increased support from donors, Trusts and Foundations.
Individuals Our individual donors continued to be at the core of our operation. Behind each individual donation is a person whose loyalty and commitment we do not take for granted. Every donation, however large or small, is appreciated and respected. People have remained loyal in these difficult times, but they may have less money to spare and are naturally considering very carefully just how and where to target their donations.
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FUNDRAISING & COMMUNICATIONS
Seafarers UK is mindful and respectful of this, and we have continued to craft our messages accordingly, as well as of course expressing our thanks and giving feedback wherever and whenever appropriate. Otherwise it was a steady year in terms of regular and one-off donations, as well as responses to our Children’s Appeal, which since its launch in the Spring has raised over £80,000. The appeal continues on until later in 2013, with an aim of reaching £100,000 by the end of the Summer. A new development during the year was the launch of the Merchant Navy Fund, a joint venture between the Merchant Navy Welfare Board and Seafarers UK, with the latter responsible for the fundraising, promotion, governance and financial administering involved using its already well-established processes. The new fund will be an on-going campaign to seek regular donations from serving and retired UK Merchant Navy seafarers in support of UK Merchant Navy causes. With support from the trade unions, Nautilus International and RMT, as well as the Merchant Navy pension fund schemes, an extensive promotional and advertising campaign was undertaken, and by the end of 2012 nearly eighty new direct debit agreements had been set up in support of the only recently-launched fund, averaging at about £10 per month. It is hoped that 2013 will see continuing support growing at a similar level. Nautical Friday is the main annual fundraising day for Seafarers UK and in 2012 numerous organisations, naval training establishments, individuals as well as some beneficiary charities got involved in the fun. This included nautical-themed dressing up by supportive companies, and a fundraising challenge in Southampton where numerous brave souls climbed to the top of a tall ship mast.
Events fundraising The national Events team – newly recruited at the end of 2011 – delivered a record London Marathon result this year with just over £80,000 fundraised by all the amazing people who took up our gold bond places
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or who had their own places. The team also delivered various other challenge events throughout the year, including a successful first go at the Great London Swim, the Nautical Friday tall ship mast climb challenge and the Great South Run. And our 24 Peaks corporate challenge again saw eleven teams taking part in July and fundraising a fantastic £65,000. Looking ahead, the Events team succeeded in breaking into the Great North Run during 2012, and this is something that can now be built on for 2013 due to the incredible popularity of the event. We also secured places in the Great North Swim for 2013. The Events team delivered the 2012 Fish & Chip Feast campaign in October, resulting in some great fundraising from fish and chip retailers around the country with two fish and chip shops raising over £1,000 individually. Going into 2013 this provided a good platform to build on for this fundraising campaign. A key event in the calendar was also our 95th Anniversary gala dinner and fundraiser which was held in London on 22 November at Trinity House. The event had a number of aims, including celebrating 95 years of supporting seafarers in need, strengthening corporate connections, highlighting the Children’s Appeal and raising funds. By the end of the evening, those involved had helped raise an amazing £35,000 in support of our on-going appeal.
Committee and Regional Fundraising Far from disintegrating due to demographics, our volunteer committees are going strong, and our own regional fundraising continues to do well as well, with strong net returns from our own Royal Marine Band concerts. As with other events, we also need to look at the wider picture with regard to regional and committee fundraising in terms of local community engagement, awareness raising, our brand and also potential legacies. There were a number of good developments during 2012. These included: inviting school choirs to take part in Royal Marine Band concert programmes where
“We agreed a new strategic partnership with Sea Vision, helping to drive forward the development of a digital media platform to be used to engage young people.” possible, helping to bring in a younger audience; reducing the production costs of our concert programmes; more effective PR support from head office; continued successes in seeking local sponsorship, plus the continued good levels of sales of such items as Union Flags and Christmas cards at all our community events. There were a few notable events to mention from the year, such as our Royal Marine Band concert in Ilfracombe with the Military Wives, a double-header concert in Bristol resulting in 900 and then 500 concert goers on the same day, and over 1,100 attending our concert at Usher Hall in Edinburgh. There was also the addition of five new concerts, all in Dunfermline, another successful visit to the Edinburgh Tattoo in August with some key supporters, along with another strong showing of teams at our annual Golf day.
Campaigning and Communications Good strides were made in 2012 in terms of Seafarers Awareness Week in June and the social and traditional media coverage achieved as a result. The general theme continued to be the economic and social contribution of the maritime sector and the seafarers who make it all happen. Supporters of the campaign were also asked to ‘Remember a seafarer’ who had had an impact on their lives, by sending in their personal stories and memories. During the week there was a Parliamentary reception involving the launch of 5 new filmed interviews with seafarers who had been directly aided by a Seafarers UK beneficiary charity. The week then culminated in Armed Forces Weekend and a major Seafarers UK reception in Plymouth with our President, in conjunction with the City Council, which recognised the contribution of all our armed services along with the Merchant Navy’s crucial role in previous engagements.
Sea Vision, helping to drive forward the development of a digital media platform to be used to engage young people, informing them of the wide array of opportunities in the maritime sector, as well as the many facts, figures, personalities and stories involved. On the marketing side, a new Impact Report was produced at the beginning of the year to help further promote understanding of Seafarers UK’s work, and this was received well by stakeholders. Materials used for promoting our Royal Marine Band concerts were updated and improved and a new promotional stand was created for using at key events. A new e-newsletter, Flagpost, was launched to provide regular updates to supporters on events, fundraising activities and news about the charity, and we also achieved a top 5 ranking in a review of international maritime Twitter users (the social media platform). The website was due to be redeveloped during the year, but we experienced some problems with the supplier. This was resolved towards the end of the year and an upgraded website is to be made available in 2013. Other marketing work was undertaken for specific campaigns, in particular around the launch of the Merchant Navy Fund with the building of a new website, the development of a flyer and adverts, and focused PR work. Lastly, Flagship, our main publication, continued to be well received by our traditional support base.
Campaigning is more than just one week though, and we worked hard this year to build new and stronger relationships with other campaigning and representative organisations in the maritime sector. In particular we agreed a new strategic partnership with
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Structure, Governance & Management
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.
This plan is now updated annually to include a five year rolling 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 box 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’.
Supplying a strong and consistent grant-making service to the sector by means of intensive fundraising and the intelligent use of financial reserves.
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Adopting a stronger central position in the maritime charity sector, not least as Chair of the Maritime Charities Funding Group (MCFG), and providing a focus for campaigning and managing generic services and projects. Remaining the maritime link with the Confederation of Service Charities (COBSEO), Veterans Scotland and other pan-sector bodies. Providing a focus for maritime research and the link with the proposed Forces in Mind Trust (FiMT) and MCFG research base and other external data sources.
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.
Vice Presidents
Members of the General Council
President: HRH The Earl of Wessex, KG, GCVO, ADC Chairman: Vice Admiral P. J. Wilkinson CB, CVO, BA Deputy Chairman: P Mamelok DL, FCA (*A) M. C. D. Acland (F) Capt. R. H. Barker (D) Surgeon Commodore P. J. Buxton OBE QHP RN (D) (from May 2012) T. Cadman (A) (from May 2012) M. Carden (D) (from May 2012) M. Dickinson (D) (from May 2012) Major P. M. H. Dunn RM (A) Mr Alderman and Sheriff Jeffrey Evans Ms C. Gould (*D) (resigned July 2012) A. Lydekker (D) C. Marr (D) B. Miller (*D) (resigned May 2012) J. Monroe (D) (co-opted December 2012) Captain D. A. Parsons MNI (*D) S. Rivett-Carnac (F) J. Saunders Watson (*F) Ms D. Sterling T. B. Warren (A) (resigned May 2012) Key to General Council sub-committee membership: F Member of the Finance and Investment Committee D Member of the Distribution Committee A Member of the Audit and Governance Committee * Chairman of Committee
Management
Director General: Commodore Barry Bryant CVO, RN Finance Director: Ian Wardle Director of Grants & External Operations: Dennis Treleaven Director of Fundraising & Communications: Nigel Shattock Bankers National Westminster Bank plc 280 Bishopsgate, London, EC2M 4RB
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 Bathurst 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 Vice Admiral Sir Cameron Rusby KCB, LVO (resigned October 2012) 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, City of Manchester, Newcastle upon Tyne, Nottingham, Oxford, Plymouth, Portsmouth, Swansea and Westminster The Rt. Worshipful the Mayor of Southampton
Investment Managers 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 KPMG LLP 15 Canada Square London, E14 5GL
UBS AG – Wealth Management Division,1 Curzon Street, London, W15 5UB
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Structure, Governance & Management
Legal Structure Seafarers UK is a non-statutory body incorporated by Royal Charter. The Charter was originally granted in 1920 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 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 pro-active 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 HR and financial management expertise in supporting COBSEO, the Forces in Mind Trust and the Maritime Charities Funding Group. 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 UK’s affairs and for ensuring that the charity operates in accordance with the Royal Charter, the Statutes and the law.
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 four-monthly meetings, and new trustees receive a full induction programme covering both their generic and specific responsibilities and the entire spectrum of Seafarer UK’s business.
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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 (renamed ‘Grants’ in 2013) Audit and Governance Members of these Committees are shown on page 17. 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. 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 Exchequer 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. 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.
Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements
Under charity law, the trustees are responsible for preparing the Trustees’ Annual Report and the financial statements for each financial year which show a true and fair view of the state of affairs of the charity and of the excess of expenditure over income for that period. In preparing these financial statements, generally accepted accounting practice entails that the trustees:
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 plus the magnitude. In this case a score of 12 (1x6)+6=12 would make this a fairly low area of worry.
make judgements and estimates that are reasonable and prudent;
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.
state whether the recommendations of the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
select suitable accounting policies and then apply them consistently;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its activities. The trustees are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the financial and other information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Each of the persons who is a trustee at the date of approval of this report confirms that: in so far as each trustee is aware, there is no relevant audit information of which the Charity’s auditor is unaware;
and the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information.
Reserves policy The Reserves Policy of Seafarers UK as agreed at the General Council on 6 December 2012 is to maintain adequate reserves to support our strategic objective of maintaining a grants programme of approximately £2,500,000 per annum. Because of the relatively huge decline in the numbers of UK seafarers since the end of the Second World War and the demographic realities of that decline over the past seven decades, we will aim for a regular drawdown of reserves to match the demographic profile of our beneficiary base. This Policy will remain under annual review by the General Council, who will make appropriate adjustments to ensure that reducing reserves reflect the changing levels of demand over time. To maximise the utilisation of our investments appropriate with a policy of spreading risk over time, Seafarers UK have appointed three investment managers as well as owning a number of investment properties. The investment managers operate different approaches, one an absolute return policy, one a total return policy and one a small private equity fund. These complement each other and reduce risk through increased diversification. This also provides the opportunity to take advantage of some of the higher risk, higher income investments.
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Our charitable activities are much more than financial grants; we also assist with grant, finance and Human Resource administration, we attend and host meetings aimed at improving efficiency and campaign for the maritime sector.
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Financial Review: 2012 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.
It can be seen from the Statement of Financial Activities (SOFA) overleaf that total incoming resources for 2012 were £3.36 million compared with £3.07 million in 2011, representing an increase of 9.3%. Overall our expenditure in 2012 was the same as 2011, £4.4 million. In January 2011 we commenced with a new finance system and introduced timesheets for staff. We now have a much greater understanding of the finances for each event than we have ever had. This information is used to ensure all fundraising events are making a surplus. The finance system is complemented by a Customer Relations Management system and a grants system. The three systems work together to increase income, reduce costs and allocate charitable expenditure where the money can produce the most benefit. These systems add to our years of experience and knowledge of the maritime sector. Details of who we are and what we do can be found on page 2 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. In 2012 we now have new Auditors, KPMG LLP. We look forward to working with KPMG for many years, and we thank PWC for their help over their many years of service prior to this year.
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FINANCIAL REVIEW
Charitable Activities Seafarers UK operates as a 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. Our achievement and performance on pages 6-9 provides more information, and a financial break down of charitable activities can be seen on page 31 in note 9 to the accounts. The overriding target each year is to maintain grants at £2.5 million per annum. A comprehensive analysis of all grants awarded can be found on pages 10 and 11. We were pleased to award grants to the sector totaling £2,509k during 2012 which is £10k more than the £2,499k awarded in 2011. The charitable activities are much more than financial grants; we also assist with grant, finance and Human Resource administration, we attend and/or host meetings aimed at improving efficiency and campaign for the maritime sector. Following on from the successful application to the BIG Lotto for the Forces in Mind Trust in 2011, we have assisted them in setting up the Trust in 2012 by providing financial administration, Human Resources, payroll and Grant application services. In 2012 we continued to increase the financial administration services given to other organisations,
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although reducing in financial terms with payroll not re-charged in 2012. Not only did we produce the finances for Forces in Mind Trust, mentioned above, we also provided the finance administration and staff for the Maritime Charities Funding Group and payroll services to COBSEO.
Fundraising Income and Expenditure Fundraising income is shown in Statement of financial activities on page 25 as Voluntary Income and Activities for Generating Funds, but many of our events work across the two accounting lines, so this year we are including a breakdown of fundraising by income stream. Our short-term aim is to achieve a 25%30% FACE (Fundraising and Administration Costs to total Expenditure) ratio. This ratio was 29.5% in 2012, compared to 27.9% in 2011. All areas of fundraising again made a surplus before support costs, although the SORP format Annual Report suggests Activities for Generating Funds produced a deficit. This is due to Events often receiving donations which are included in the donation income with costs shown in the Activities for Generating Funds. National events and Regions produced a surplus of £41k and £61k, respectively, before support costs. The main events are The London Marathon and 24 Peaks with participants taking part in many other events. Individuals are Appeals, regular giving and other donations. Regions are our regional volunteer committee networks, which often organise Royal Marine Band Concerts and various other activities. Legacies are self-explanatory and are supported by fundraising, i.e. the costs incurred by fundraising which are not allocated to one event. The final costs are finance, IT, building etc. Fundraising produced a surplus of £1,031k in 2012 and £966k in 2011, an increase of £65k. Voluntary income remained at £1.5 million per annum with donations up and legacy income down. The main increase in 2012 was
Events up £101k, with income increasing across most events including the London Marathon which raised over £80k in 2012.
return on cash, after fees. Since inception (April 2010) the portfolio has produced a total return of 12.2% and 4.6% in the last twelve months on an RPI of 3.1%.
Investments
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 CPI plus 4% per annum over a rolling period of 5 to 10 years. Since inception in April 2010, the investment portfolio has produced a total return of 15% on a CPI of 9.5%, and 7.1% in the last twelve months on a CPI of 2.7%.
The investment policy of Seafarers UK balances the need for capital protection and the desire to secure investment returns and capital growth whilst recognising the decision of the General Council to reduce the value of these funds over the long term as part of the charity’s agreed reserves policy. These investments are managed on our behalf by professional third parties, who report back to the Finance & Investment Committee on a regular basis. The individual managers are set targets based on their portfolio and style of investing (either through payment of a dividend or capital growth) in line with General Market Conditions prevailing during the year. In addition, an Investment Property valuation was undertaken at the end of the calendar year for reporting to the following Finance and Investment Committee and General Council. In 2012 our investments market valuation increased by £153k from £37,544k to £37,697k. This was after a £320k increase due to property revaluation, mainly from the transfer of the ground floor studio at 7 Hatherley Street, London. The studio was let commercially in early 2013 having previously been part of the offices used by Seafarers UK. Equities, Interest Bearing stocks deposits were down £13k with transfers out similar to realised and unrealised gains. The asset allocation as at 31 December 2012 shows 60.5% in equities, 32.8% in fixed interest securities, 5.2% in investment properties and 1.5% in cash (see note 14 to the accounts). Investment income rose from £1,124k to £1,383k.
We also have a private equity fund, where funds are invested in a fund of funds; we plan to let this investment run its natural course. This is now in its seventh year and produced a net income of £235k and a market valuation increase of £127k, a return of 16.3% on 2012. The investments also include rental properties, which are the residential flats at 7 Hatherley Street. In December 2012, a commercial let to 2020Health was agreed for the ground floor studio, which had previously included our Board room. This should add to our surplus in the coming years.
Governance Governance increased by £15,000, with additional staff time for work on PQASSO and strategic objectives.
Charitable Activities Charitable activities decreased from £3,039k to £2,943k, a reduction of £96k, which is costs mainly associated with charging other organisations (see what our grant making achieved pages 6-9). Approved by the General Council on 17 April and signed on its behalf by:
Investment Manager Performances Ruffer LLP operate an absolute return policy and aim to preserve capital and produce real returns greater than
J. Saunders-Watson, Treasurer
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Statement of Financial Activities for the year ended 31 December 2012
Note
Incoming resources Incoming resources from generated funds Voluntary income Activities for generating funds Investment income Charitable activities
2 3 4 5
2012
2011
Unrestricted Funds
Restricted Funds
Endowment Funds
Total Funds
Total Funds
(£'000)
(£'000)
(£'000)
(£'000)
(£'000)
1,293 456 1,161 33
191 4 222 —
— — — —
1,484 460 1,383 33
1,466 368 1,124 116
2,943
417
—
3,360
3,074
6 7 8
447 466 324 1,237
— — 67 67
— — — —
447 466 391 1,304
358 510 368 1,236
Charitable activities Supporting older and ex seafarers Supporting seafarers' dependants and family Supporting seafarers of working age Supporting maritime youth groups Improving efficiency
9 9 9 9 9
931 424 576 277 172 2,380
114 104 146 150 49 563
— — — — — —
1,045 528 722 427 221 2,943
1,187 732 756 120 244 3,039
Governance costs
10
177
—
—
177
162
Total resources expended
3,794
630
—
4,424
4,437
Net (outgoing) resources before transfers and other gains and losses
(851)
(213)
—
(1,064)
(1,363)
299 629 (395) 533
11 24 — 35
52 110 — 162
362 763 (395) 730
(191) 428 (521) (284)
(318)
(178)
162
(334)
(1,647)
32,579 32,261
1,270 1,092
5,803 5,965
39,652 39,318
41,299 39,652
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
Other recognised gains and losses Realised gains/(losses) Unrealised gains/(losses) Property revaluation (loss) Net gains/(losses) on investment assets Net movement in funds Reconciliation of Funds Total funds brought forward Total funds carried forward
14 14 13 & 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.
2012 ANNUAL REPORT & REVIEW
25
FINANCIAL REVIEW
Balance sheet
as at 31 December 2012
Note Unrestricted Funds (£'000)
2012
2011
Restricted Funds
Endowment Funds
Total Funds
Total Funds
(£'000)
(£'000)
(£'000)
(£'000)
Fixed assets Tangible assets
13
1,378
—
—
1,378
2,117
Investments
14
30,640
1,092
5,965
37,697
37,544
32,018
1,092
5,965
39,075
39,661
551 1,754
— —
— —
551 1,754
330 662
2,305
—
—
2,305
992
(2,062)
—
—
(2,062)
(1,001)
243
—
—
243
(9)
32,261
1,092
5,965
39,318
39,652
2,593 29,668
— 1,092
— 5,965
2,593 36,725
2,987 36,665
32,261
1,092
5,965
39,318
32,579
1,270
5,803
Total fixed assets CURRENT ASSETS Debtors and prepayments Cash at bank and in hand
15
Total current assets Liabilities Creditors : Amount falling due within one year
16
Net current assets Net assets Property Revaluation Reserve Other Reserves Total Funds as at 31 December 2012 Total Funds as at 31 December 2011
17
39,652
The financial statements set out on pages 25-36 were approved by the General Council on 17 April 2013 and signed on its behalf by:
Vice Admiral P.J. Wilkinson J. Saunders-Watson Chairman Treasurer
26
Cdre B.W. Bryant Director General
Cash flow statement year ended 31 December 2012
Note
Net cash outflow from operating activities Returns on investment and servicing of finance Capital expenditure and financial investments
1 2 3
2012
2011
Total Funds
Total Funds
(£'000)
(£'000)
(1,569) 1,383 1,278
(2,510) 1,124 544
Increase/(Decrease) in cash in the year
1,092
(842)
Cash at bank and in hand at 1 January Cash at bank and in hand at 31 December
662 1,754
1,504 662
Increase(Decrease) in cash in the year
1,092
(842)
Net (outgoing) resources Investment income Interest receivable Rental income Depreciation — fixed assets Loss on sale of fixed assets (Increase)/Decrease in debtors and prepayments Increase in creditors
(1,064) (969) (350) (64) 39 (1) (221) 1,061
(1,363) (792) (273) (59) 40 — (142) 79
Net cash outflow from operating activities
(1,569)
(2,510)
969 350 64
792 273 59
1,383
1,124
(16) (6,852) 8,146
(4) (7,396) 7,944
1,278
544
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 inflow from capital expenditure
2012 ANNUAL REPORT & REVIEW
27
Notes to the accounts year ended 31 December 2012 1
ACCOUNTING POLICIES
2
VOLUNTARY INCOME
3
ACTIVITIES FOR GENERATING FUNDS
4
INVESTMENT INCOME
5
INCOME FROM CHARITABLE ACTIVITIES
6
COSTS OF GENERATING VOLUNTARY INCOME
7
COSTS OF ACTIVITIES FOR GENERATING FUNDS
8
COSTS OF MANAGING INVESTMENTS
9
CHARITABLE ACTIVITIES
10
GOVERNANCE COSTS
11
INFORMATION REGARDING EMPLOYEES AND TRUSTEES
12
PENSION OBLIGATION
13
TANGIBLE ASSETS
14
INVESTMENTS
15
DEBTORS AND PREPAYMENTS
16
CREDITORS FALLING DUE WITHIN ONE YEAR
17
TOTAL FUNDS
18
SUBSIDUARY UNDERTAKING
19
RELATED PARTIES
20
ASSISTANCE TO OTHER ORGANISATIONS
1 Accounting Policies A 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.
B 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 where required. The purpose of each endowment fund is set out in the notes to the financial statements.
28
C 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. 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 received. 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
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:
E 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
2%
Fixtures and Fittings
Computer Equipment 20%
Office Equipment
10%
15%
Freehold land is not depreciated.
F Investments
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 Seafarers UK (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.
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 investments are held at the most recent valuation available. The SOFA includes the net gains and losses arising on revaluations and disposals during the year.
G 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.
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.
2 Voluntary Income (£ ’000) unrestricted Donations Legacies
429 864 1,293
restricted 191 — 191
2012
2011
620 864 1,484
453 1,013 1,466
2012
2011
397 13 31 — 19 460
296 17 32 20 3 368
3 Activities for generating funds (£ ’000) unrestricted Events Advertising in Flagship Magazine Corporate Sponsorships Charges to other organisations Trading
397 13 27 — 19 456
restricted — — 4 — — 4
2012 ANNUAL REPORT & REVIEW
29
NOTES TO THE ACCOUNTS 4 Investment income (£ ’000) unrestricted Dividends Interest Rental income
806 291 64 1,161
restricted 163 59 — 222
2012
2011
969 350 64 1,383
792 273 59 1,124
2012
2011
33 33
116 116
5 INCOME FROM CHARITABLE ACTIVITIES (£ ’000) unrestricted Re-charges to other organisations
33 33
restricted — —
Income from Charitable Activities are charges to unrelated organisations who contribute to the Maritime Charity Sector, the re-charges are mainly for Grant, Financial services and Human Resources services but also include expenses incurred on their behalf. 2011 income included the re-charges for staff costs for staff employed to work exclusively for Forces in Mind Trust.
6 Costs of Generating Voluntary Income 2012
2011
Donations Legacies
409 38 447
323 35 358
Support costs included in above figures
135
96
(£ ’000)
7 Costs of activities for generating funds (£ ’000) Events
Support costs included in above figures
2012
2011
466 466
510 510
90
81
2012
2011
30 361 391
16 352 368
8
6
8 Cost of managing investments (£ ’000) Cost of managing properties Investment Managers’ fees Support costs included in above figures
30
9 Charitable activities Older and Seafarers’ Seafarers ex-seafarers dependants of working and families age (£ ’000)
Charitable Grants Authorised Grants no longer required Net Grants
Maritime youth groups
Improving efficiency
2012
2011
929 — 929
469 — 469
653 (11) 642
388 — 388
70 — 70
2,509 (11) 2,498
Armed Forces Day Assistance to other organisations Seafarers Awareness Week Charitable Event Costs Communication Grant administration Support costs Total Charitable Activities – 2012
— — — 16 10 32 58 1,045
— — — 8 5 16 30 528
— — — 11 7 22 40 722
— — — 5 3 11 20 427
35 55 41 3 2 5 10 221
35 55 41 43 27 86 158 2,943
Total Charitable Activities – 2011
1,187
732
756
120
244
2012
2011
84 74 158
286 257 543
2,499 (3) 2,496
543
3,039
Grants authorised are shown by receiving organisations on pages 10-11 Support costs included in Charitable activities (£ ’000) Staff costs Other costs Total support costs for charitable activities
The 2011 staff costs above included payroll costs associated with assistance given to other maritime organisations, these are excluded from the 2012 accounts.
10 GOVERNANCE COSTS (£ ’000) Auditors remuneration for audit services * AGM Trustee expenses Staff support costs Other support costs
2012
2011
27 6 2 92 50 177
25 16 6 93 22 162
*No non-audit fees were incurred or paid to KPMG LLP during 2012 or PricewaterhouseCoopers LLP during 2011.
11 Information regarding employees and trustees
Number of full time equivalent employees during the year: Generating charitable income Charitable activities Governance
Staff costs comprise: Wages & Salaries Redundancies Social Security Money Purchase Pension scheme Contributions Other Benefits
2012
2011
FTE 8 9 1 18
FTE 10 9 1 20
(£’000)
(£’000)
748 4 78 42
796 — 84 44
15
7
887
931
Seafarers UK contribute to personal pension plans through Aviva.
2012 ANNUAL REPORT & REVIEW
31
NOTES TO THE ACCOUNTS
The number of employees paid over £60,000 during the year (salary plus taxable benefits excluding employer pensions contributions and redundancy payments) was: (£ ’000)
2012
2011
3 — 1
3 — 1
£60,000 to £70,000 £70,000 to £80,000 £80,000 to £90,000
All four employees earning more than £60,000 participate in the Personal Pension Plan. The contributions were £5,012, £5,083, £5,088 and £7,821 from lowest to highest paid respectively, (2011 were £4,907, £3,588, £4,980 and £7,636) were paid into the scheme during the year. The trustees neither received nor waived any emoluments during the year (2011: nil). Trustees are entitled to reimbursement of expenses incurred on Fund business and expenses of £1,395 were paid to three trustees (2011: £1,713 paid to six trustees) which is mainly travel expenses. A further £439 on subscriptions (£365: 2011) and Insurance Indemnity fees paid by Seafarers UK were £689 (2011: £574) and although no Trustee recruitment costs were incurred in 2012, 2011 incurred £3,000.
12 PENSION 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. The total cost of pensions for the year incurred by Seafarers UK was £42k (2011: £44k).
13 TANGIBLE assets (£ ’000) Freehold land and buildings Cost or valuation at 1 January Revaluation as at 31 December 2012 Less transfer to investments Additions at cost Less disposals
Cost or valuation at 31 December Accumulated Depreciation at 1 January
2,100 (430)
Fixtures, fittings & equipment
Total
129 —
2,229 (430)
(345)
—
(345)
—
16
16
—
13
(13)
1,325
132
1,457
40
72
112
(60)
—
(60)
Charge for the year
20
19
39
Less : Eliminated on Disposals
—
(12)
(12)
Accumulated Depreciation at 31 December
—
79
79
Net Book Value at 31 December 2012
1,325
53
1,378
Net Book Value at 31 December 2011
2,060
57
2,117
Revaluation as at 31 December 2012
All of the above fixed assets are held for charitable use. The above freehold land and buildings are 8 Hatherley Street, London occupied and carrying out the operations of the Fund. During 2012 the ground floor studio of 7 Hatherley Street was refurbished and leased to 2020 Health during December, resulting in a transfer of £345,000 to investments. All properties were revalued as at 31 December 2012 by Third Sector Properties, using the Royal Institute of Chartered Surveyors appraisal valuation. The valuation was £430,000 lower than the previous valuation from 2009. Investments are shown in more detail in Note 14. The original historical cost was £456,000.
32
14 Investments 2012
2011
Market value at 1 January Additions at cost Sales at book value Investment Property Revaluation Investment Property Transfer Change in Market Value of Non Property Investments Market Value at 31 December
37,544 6,852 (8,144) (25) 345 1,125 37,697
38,376 7,396 (7,944) — — (284) 37,544
Historical Book Value at 31 December
34,500
35,083
(£ ’000)
2012
Analysis of Market value at 31 December
(£’000) Interest bearing stocks and deposits UK stocks Non UK stocks Deposits
Equities: UK Equities: Overseas Programme related investments Freehold land and buildings at valuation Total
2012 (%)
8,138 4,239 584 12,961
21.6 11.2 1.5 34.3
2011 (£’000)
2011 (%)
6,776 5,765 620 13,161
18.0 15.4 1.7 35.1
8,664
23.0
7,927
21.1
14,129
37.5
14,653
34.0
22,793
60.5
22,580
60.1
—
—
180
0.5
1,943
5.2
1,623
4.3
37,697
100.0
37,544
100.0
There were no individual holdings of investments which exceeded 5% of the total market value of investments at 31˛December 2012 (nil 2011). Freehold Land and Buildings includes flats held for investment purposes at 7 Hatherley Street which were valued in 2012 at £1.895 million (2009 £1.575 million) by Third Sector Properties, Chartered Surveyors, using the RICS appraisal and valuation manual. Investment properties were valued in 2009 at £1.575 million. The revaluation reduced these by £25,000. At the end of 2012 the ground floor studio at 7 Hatherley Street was valued at £345,000 and transferred to investments. 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. Total investments properties are now £1.895 million.
15 Debtors and prepayments (£ ’000) Debtors Prepayments Amount due from subsidiary undertaking Accrued income
2012
2011
80 41 4 426 551
63 45 4 218 330
2012
2011
1,930 111 21 2,062
804 166 31 1,001
16 Creditors falling due within one year (£ ’000) Grants payable Accruals Trade creditors
2012 ANNUAL REPORT & REVIEW
33
NOTES TO THE ACCOUNTS
17 Total FundS (£ ’000)
Unrestricted Funds Restricted funds Royal Naval Officers Fund The South Atlantic Fund Joyce Pratt Legacy Beryl Joyce Threadkell Legacy Sheila Constance Woods legacy Restricted to Scotland Event Sponsorship Commonwealth Fund Merchant Navy Fund Childrens’ Appeal Marine & Sea Cadets (TS Royalist)
Restricted Income/(expenditure) from Permanently endowed funds Inglis Fund (incorporating the van de Kasteele scholarship fund) Merchant Navy South Africa Scholarship Scheme
Balance 1.1.12
Gains/Losses expenditure & transfers
Incoming resources
Balance 31.12.12
32,579
2,943
(3,261)
32,261
654 150 30 99 278 20 1 5 — — — 1,237
41 5 1 4 9 21 4 — 5 82 75 247
(50) (155) — — 1 (41) (5) (5) — (82) (100) (437)
645 — 31 103 288 — — — 5 — (25) 1,047
—
27
(27)
—
—
6
(6)
—
Royal Navy War Libraries Endowment Fund
—
7
(7)
—
South African Women's Auxiliary Service
33
13
(1)
45
Arthur T. Jeffress Fund
—
85
(85)
—
David Richards Trust
—
25
(25)
—
Henry Herbert Wills Fund
Total restricted funds
—
7
(7)
—
33
170
(158)
45
1,270
417
(595)
1,092
Permanently endowed funds Endowed General Purposes
764
—
21
785
Inglis Fund (incorporating the van de Kasteele scholarship fund)
811
—
23
834
Merchant Navy South Africa Scholarship Scheme
192
—
5
197
Royal Navy War Libraries Endowment Fund
201
—
6
207
South African Women's Auxiliary Service Arthur T. Jeffress Fund
—
10
379
—
70
2,581
David Richards Trust
745
—
21
766
Henry Herbert Wills Fund
210
—
6
216
5,803
—
162
5,965
39,652
3,360
(3,694)
39,318
Total permanently endowed funds Total funds
34
369 2,511
17 Total Funds (continued) The purpose of each Restricted and Endowment Fund is as follows:
Restricted Funds 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 in the South Atlantic Conflict
Joyce Pratt Legacy
To assist Air Sea Rescue
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
Merchant Navy Fund
Funds for Merchant Navy
Children’s Fund
Funds for Children
John Forrest Holmes Fund
To further the education of children keen to make a career at sea
Marine & Sea Caders (TS Royalist)
Funds for the TS Royalist appeal by the Marine & Sea Cadets
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
}
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
2012 ANNUAL REPORT & REVIEW
35
NOTES TO THE ACCOUNTS
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. A loss of £520 (nil in 2011) arose in the year ended 31 March 2012 after charges of £250 (2011: £25) made by the Fund. There was no Gift Aid donation made in either year. At 31 December 2012, £3,940 was owed on current account from Seaservers Limited (£3,870 in 2011 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 2012 is shown below; the Company is entitled to exemption from statutory audit under section 249 of the Companies Act 1985.
2012
2011
0 (1) (1)
3 (3) —
Gift Aid Payment
—
—
Retained Profit for the year
(1)
—
(£ ’000) Turnover Cost of Sales and administration expenses Profit on activities before Gift Aid
Summarised Balance Sheet at 31 March 2012 Current assets
4
5
Net assets
4
5
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 2012 £3,126 costs were paid (2011: nil) to Pothecary Witham Weld in connection with legal services provided to the Fund, relating to letting of ground floor studio, 7 Hatherley Street, London. A trustee, Mr T. Cadman, 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 During 2012 the Forces in Mind bank account was transferred to their nominated account, as at 31 December 2012 Seafarers UK held nil (2011: £52,684) this was not included within these accounts (2011: nil).
36
Independent auditor’s report to the Trustees of Seafarers UK (King George’s Fund for Sailors)
We have audited the financial statements of Seafarers UK (King George’s Fund for Sailors) for the year ended 31 December 2012 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 UK Accounting Standards (UK Generally Accepted Accounting Practice).
Opinion on financial statements
This report is made solely to the charity’s trustees as a body, in accordance with both section 144 of the Charities Act 2011(or its predecessors) and regulations made under section 154 of that Act and section 44 (1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
◗ have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and
Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees’ Responsibilities set out on page 19 the trustees are responsible for the preparation of financial statements which give a true and fair view. We have been appointed as auditor under section 144 of the Charities Act 2011(or its predecessors) and section 44 (1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report to you in accordance with the regulations made under those Acts. 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.
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate.
In our opinion the financial statements:
◗ give a true and fair view of the state of the charity’s affairs as at 31 December 2012 and of its incoming resources and application of resources for the year then ended;
◗ have been prepared in accordance with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 ◗ the charity has not kept sufficient and proper accounting records; 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.
Marianne Fallon, 25 April 2013 for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 Forest Gate, Brighton Road, Crawley, West Sussex. RH11 9PT KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.