Annual Report 2013
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Contents Annual Report 2013
Chairman’s Message Objectives and Activities Achievements and Performance Fundraising and Communications Structure, Governance and Management Financial Review Financial Statements
3 4 8 14 18 22 24
£3m Seafarers UK’s charitable expenditure in 2013 of which £2.526 million were financial grants to beneficiary organisations and projects.
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Message from the Chairman Vice Admiral Peter Wilkinson CB CVO BA
After all the excitement of 2012 there was perhaps a feeling that, for Seafarers UK, it would be back to business as usual in 2013 – but that certainly proved not to be the case. Hugely successful events in London and on Merseyside to commemorate the Battle of the Atlantic helped raise the profile of the charity amongst a wide audience. Seafarers’ Awareness Week continued its upward trajectory – and a new focus on Commonwealth projects begin to reflect more accurately the global nature of today’s shipping industry. Whenever I talk to people about Seafarers UK and about the seamen of the Royal Navy, the Merchant Navy and the Fishing Fleet who help protect us, feed us and allow us to enjoy our high
standard of living, I am always struck by their immediate understanding of what we are trying to do. We have to turn that empathy into practical and financial help. I am hugely grateful for all the assistance and publicity that we receive throughout the year from our supporters. But we can only do what we need to do with your support. The calls on our funds remain far in excess of the help we can offer and I cannot see that need reducing in the foreseeable future. So let us start looking ahead to our Centenary in 2017 and use it to our advantage. I certainly have no desire to waste hard earned funds on extravagant events but it does provide us with an opportunity to publicise our charity, to tell people what we do and why we do it and to encourage a new
generation of supporters to join us. We will only achieve that however, if we continue to be forward looking and innovative. On behalf of us all I would like to thank the Director General and all his staff for their hard work in keeping Seafarers UK at the forefront of maritime charities and I am humbled by the support that we receive from thousands of loyal supporters. In a book of maritime short stories on my bookcase the job of a First Lieutenant in getting his ship ready for sea after a period in the Dockyard is described as ‘The Endless Task’ – that is the continuing challenge for us all – to use every opportunity to tell people of our work, our aspirations and our need for their support.
Whether it be the noble efforts of our volunteer supporters, the researchers and managers who ensure best use of our resources, or the difficult front-line work in the ports, we thank the many thousands of people who labour, often for little reward, to safeguard our seafarers.
Introduction from the Director General Commodore Barry Bryant CVO RN
Welcome to the story of 2013 – an interesting year by any standards. Our new and more flexible continuous grant-making scheme led to a significant increase in applications, while the fundraisers explored innovative ways of raising money in support of our vital funding work. We made particular efforts to learn more about the huge maritime support industries in the UK, and the increasing international, but largely London-based, effort to improve seafarers’ welfare in the wake of MLC 2006, their Bill of Rights. Both these areas are likely to have an increasing impact on our future operations.
the UK maritime sector, and across the UK and Commonwealth. There are many experienced, learned and august organisations in this sector, but the huge majority of them only operate in a single area: the Chamber of Shipping, for instance, promoting the commercial maritime world, Seafish leading the fishing industry, or the Royal Navy focusing largely on the military arena. Only by appreciating the synergy between all three industries, and the common and timeless dangers which they all face, will we better understand the vibrant and self-sufficient island mentality which forged our national characteristics.
As many will probably appreciate, Seafarers UK has a unique position in having a responsibility right across
Our Trustees recognise our distinctive role and the duty this bestows upon us to assume coordination and,
sometimes, leadership in promoting a greater awareness of the importance of the sea and its people. This gives us the freedom to promote the maritime case both in an educational sense and as an aid to fundraising. Finally, as you read, remember the huge exertions which go on day by day, month by month, to ensure that no-one in our maritime communities should suffer distress or disadvantage as a result of their service at sea. Whether it be the noble efforts of our volunteer supporters, the researchers and managers who ensure best use of our resources, or the difficult front-line work in the ports, we thank the many thousands of people who labour, often for little reward, to safeguard our seafarers.
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Objectives and Activities Who we are and what we do
Seafarers UK is a charity that helps people in the maritime community, by providing vital funding to support seafarers in need and their families. We do this by giving money to organisations and projects that make a real difference to people’s lives. 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 efficiency and effectiveness of the maritime charitable sector. • The promotion of safety at sea.
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All of these are achieved by providing support to organisations established within or exceptionally outside the Commonwealth. This allows us to help a wide range of people from the maritime community, although both the Charter and resolutions made by the Trustees exclude some specific activities. For example, we are unable to support memorials or the various charities and trusts promoting sailing activities for the disabled. We consistently review our activities so we can meet the fundamental aims of the Charter in the light of the changing maritime, defence and social environment of the 21st century. How we do this is described in the following sections of this report. Providing benefit Under the Charity Act 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.
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Our key aims are to improve the quality of life for seafarers and their families in times of need.
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O b j ecti v es and Acti v ities
Our Vision
Steering a multi-faceted charity, looking after the interests of three, sometimes very different, communities while liaising with up to a hundred separate charities as they combat all aspects of human distress from cradle to grave, sometimes feels similar to taking a valuable convoy through hostile waters. One always has to be on the alert for the unexpected attack, whether it be from increased need, lack of resources, unhelpful regulations – or just fate! The need to stay ahead of the game, plan for unforeseen events and deploy one’s forces effectively, while at the same time conserving precious resources and dealing with sometimes capricious allies, is what makes our task lively, invigorating and ultimately hugely satisfying.
However, like all complicated operations, our passage must start with carefully thought out plans, based on the best possible information and using the finest expertise available in each field – and this is where our balanced and knowledgeable Trustee body comes in. Each year the General Council looks at both our short and long-term plans and agrees with the senior management team the basic tenets that underpin our future direction. This shared and agreed Vision of where and what Seafarers UK should be in five years’ time – and perhaps beyond – is based on five main themes: • Remaining ‘the leading charity for the UK’s whole maritime community’, ensuring that whole community thrives with the best realistic quality of life. • Supplying a strong, successful and innovative fundraising and grant-making service to the sector, responding to constantly changing needs in both disciplines. • Maintaining a strong central position in the maritime charity sector, not least as Chairman of the Maritime Charities Funding Group and providing a focus for effective coordination, campaigning, and managing generic services and projects. • Remaining the pan-maritime link in UK with the Confederation of Service Charities (Cobseo) , the Forces in Mind Trust (FiMT), Veterans Scotland and other maritime and military sector bodies, reinforcing our traditional patriotic duty of care. • Providing a focus for maritime research and the link with the FIMT’s Research Cluster and the MCFG research base, plus other external data sources.
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O b j ecti v es and Acti v ities
Core Strategies To achieve the above, the following core strategies will be adopted: • 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 the concept of an ‘Island Nation’, while at the same time recognising the realities and seizing the opportunities of the global shipping industry. • To act as the focus for maritime campaigning by leadership and coordination of Seafarers Awareness Week and liaison with other organisations. • To promote maritime education, mainly as a Lead Partner with Seavision, but seizing other opportunities as they arise. • To ensure that properly defined Merchant Navy Veterans are recognised by the Ministry of Defence and others as part of the Armed Forces Community, and notified of their rights and potential benefits from military service welfare providers. • To work with members of the Maritime Charities Funding Group to ensure that any evolution of the Group recognises Seafarers UK’s unique position as the only organisation with the ability to span the entire maritime sector, while allowing others to operate at maximum capacity and influence within their individual objects. • To promote, and influence where possible, the most efficient and effective evolution of all other sector organisations. • To ensure that all our fundraising, grant distribution and campaigning activities are transparent to both donors and beneficiaries, are advised by the best available objective and evidence-based research, and to make this research available to others. • To retain a motivated and quality-assured staff and administrative structure, able to support continuous improvement, internal progression, and the supply of external services. • To ensure the skills and experience-based General Council operates at maximum effectiveness and in accordance with best practice, with members advising the Chairman on the execution in their specific areas of expertise.
If Seafarers UK is to flourish into the future, we must retain the interest and respect of today’s modern shipping industry.
We believe that a vibrant charity, living in changing and challenging times, must constantly examine the wide and inclusive charitable ‘Objects’ laid down in our Royal Charter. Although details of the Charter have been updated several times over the past 90 years, the Objects have to remain broadly the same – but fortunately they were wisely written, and allow us to interpret them flexibly to respond to the modern day maritime environment. For many decades, almost our only priority was the welfare of UK seafarers, and this community will indeed always be at the forefront of our operations, but in recent years we have examined opportunities in the Commonwealth, achieving excellent value for money in some small port schemes. We are only too well aware that mercantile shipping is now the ultimate global industry, and we believe that Seafarers UK must play its part in what should become a global maritime welfare tapestry. Quite simply, accepting that UK and the Commonwealth represent about 30% of the world’s shipping industry, we are prepared to enter into partnerships with other international organisations to examine and perhaps help commission and manage initiatives that will benefit all the world’s seafarers – so long as our maximum share of the resource provision does not exceed 30%. The catalyst for this thinking has been the introduction of the Maritime Labour Convention 2006 – the so-called ‘Bill of Rights’ for all seafarers – which demands minimum standards of welfare and employment provision. Obviously we cannot demand or supply onboard services, but we can certainly help to harness the UK’s expertise and experience in areas such as port-based welfare services. If Seafarers UK is to flourish into the future, we must retain the interest and respect of today’s modern shipping industry, working in their world and helping their people, while at the same time retaining our traditional emphasis by deploying our financial reserves and the goodwill of our present supporters to ensure an absolutely fair chance for all seafarers, leading to a better quality of life for the UK maritime community, past, present and future.
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Achievements and Performance At a time when there is much debate in the UK about our role in the world, it is the maritime sector that delivers most of our goods, puts food on our table and protects those supply lines and our interests overseas. Never has the need to remind the British public that we are an Island Nation been more important.
As we reflect on the grants made during 2013, two key elements stand out. Most of the organisations and services we supported were also supported through funding partnerships with other grant makers and our grants are increasingly seen as supporting seafarers at the UK (and Commonwealth) end of an international maritime industry. Seafarers UK is the UK’s largest cross maritime sector grant-making charity. However we could not support all the services we wish to fund alone. By working in partnership with other grant-making charities we are able to ‘make the money go further’ and fund a network of care, support and advice and information services that ensure no seafarer is without help in times of need. How our grants are made Ultimate responsibility for grant-making rests with the General Council of Seafarers UK who have delegated decisions on individual grants to the Grants Committee, the members of which are advised by the Director of Grants and External Operations. 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 introduced formal monitoring and evaluation processes. We will continue to work closely with our beneficiaries in 2014 to make sure that this evaluation produces valuable evidence of their work, whilst not being onerous to produce.
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Grant-making in 2013 At the beginning of 2013, we introduced ‘continuous grant making’ which means that the assessment and awarding of grants is a continuous process across the year, where previously it had revolved around one, and then two, key dates. During 2013 we received 127 valid applications representing a 43% increase. If the five applications (all awarded) to the Merchant Navy Fund are removed, then this still gives a 37% increase in applications. Of the 127 applications, 102 were awarded grants totalling £2,526,430. This left 23 applications rejected by Trustees with one grant deferred and one withdrawn. This gives a success (or partial success) rate of around 81% and an average grant size of £24,768. This is a substantial reduction on previous years (£35,000; £32,000; £31,000 and £33,000 respectively). Of the 102 grants awarded, 36 were awarded less than the full requested amount. 41 were awarded £5,000 or less suggesting the Small Grants programme introduced in 2010 continues to be a great success.
43%
increase in grant applications in 2013
Improving efficiency within the maritime charitable sector In addition to increasingly working through funding partnerships, Seafarers UK is also committed to working to improve the efficiency and effectiveness of the maritime grant-making sector. To this end during 2013 we continued to support the work of the Maritime Charities Funding Group, as well as the Confederation of Service Charities (Cobseo), Veterans Scotland and Seavision. These organisations are increasingly important in representing the voice of the maritime sector to a range of public and private sector bodies and government departments. Advice in times of hardship and need In these difficult economic times, Seafarers UK supports a number of advice, signposting and information services for seafarers, ex-seafarers and their families. We jointly fund (with the Seamen’s Hospital Society) the Seafarers Advice and Information Line (SAIL) – www.sailine.org.uk. Delivered on our behalf by Greenwich Citizens Advice Bureau, SAIL operates a free advice and help service to seafarers on a range of issues including benefits, employment, housing, debt, consumer problems, legal matters, personal relationships and taxation. Its services are provided to active and retired seafarers and their dependants throughout the UK, and assistance is also offered to charities and other organisations involved with seafarers including professional briefings and updates on changes in benefits and other state provision.
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Our grant to the Maritime Charities Funding Group in aid of ‘Seafarer Support’ – www.seafarersupport.org – provides a signposting service helping guide seafarers and their families to some of the services available. This covers a wide range of organisations that can advise on issues such as debt/money management, entitlements to state benefits, help bringing up young families, residential or nursing care, sheltered and independent housing, help with the costs of disability aids and home adaptations - including access to priority treatment for working and retired UK merchant seafarers and fishermen. The service was managed by Merchant Navy Welfare Board (MNWB) on behalf of the Maritime Charities Funding Group (MCFG). In Scotland we support the Armed Services Advice Project (ASAP). The service is a multi-partner funded initiative delivered by Citizens Advice Scotland providing free, confidential information, advice and support to people who are current or former members of the Armed Forces, or their dependants. In addition, members of the Merchant Navy
who served on a commercial vessel in support of legally defined UK military operations, or a dependant are eligible. The advice covers a range of areas, including benefits, debt, employment and housing. Finally we take our commitment to supporting seafarers across the globe through our grant to the International Seafarers Welfare and Assistance Network (ISWAN). ISWAN is an organisation that promotes seafarers welfare worldwide and directly serves seafarers by providing a 24 hour multilingual helpline, ‘seafarerhelp’ – www.seafarerhelp.org – (based in London) which runs every day of the year and is free for seafarers to call from anywhere in the world. ISWAN also runs an emergency welfare fund for seafarers in need, produces health information for seafarers, and provides information on the location of seafarer centres.
Services. It is worth noting that whilst many of the organisations providing services are belief based, our funding is for the provision of welfare services which for them is integral to their work. Our grant to the Mission to Seafarers was to support the running costs of their work in eight ports – Felixstowe, Cardiff, Port Talbot, Newport and the Commonwealth ports of Singapore, Limassol (Cyprus), New Mangalore (India) and Tuticorin (India). The majority of the port centres are managed by chaplains based in one of the centres or operating through mobile ministries whilst some are led by volunteers. Together they provide numerous services including ship visiting, transportation, centre facilities and the offer of friendship, support and help to seafarers. The provision of the port based welfare services in these areas will ensure a reduction in the isolation felt by seafarers.
Support for working seafarers Like our support for advice services, we support a number of charities providing support to seafarers when they arrive in port. We call these Port Based Welfare
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Ac h i e v e m e nts an d P e rf o rmanc e
Our grant to the Apostleship of the Sea (AoS) – www.apostleshipofthesea.org.uk – supports seafarers in the UK and is a partner in Stella Maris which works with seafarers worldwide. They provide port chaplaincy teams (trained port chaplains and trained volunteer ship visitors) in the main ports of Great Britain, to proactively visit ships in order to meet the practical needs of all seafarers regardless of any factor other than their needs. They also provide drop-in seafarer centres for seafarers to communicate with family and get away from their ships – either directly or in partnership with other welfare organisations. They support international fishing crews in partnership with the Fishermen’s Mission. Fishing has always been a dangerous activity and our various grants to the Royal National Mission to Deep Sea Fishermen – www.fishermensmission.org.uk – provided assistance to the families of fishermen who have been killed or seriously injured. The Fishermen’s Mission looks after the survivors of fishing vessel accidents; assists injured or ill fishermen, and where appropriate arranges for them to receive medical attention; sources emergency accommodation and catering facilities where there is no alternative provision; makes emergency grants to fishermen and their families in times of need and generally helps fishermen’s families in cases of illness or distress. Last year we were able to help with a modest grant towards the re-construction of a seafarers welfare centre in New Zealand. The port was a regular destination for a range of merchant ships prior to the devastating earth quakes in 2010 and 2011 which resulted in the previous centre having to close. Our grant to the Lyttelton Seafarers’ Centre Charitable Trust is a partnership grant towards the capital cost of providing a portable building which will be developed as a seafarers’ centre at the port. The portable building concept has been chosen because, at a future date when the port has been redeveloped (post-earthquakes), the intention is to move the centre into the port area, rather than the current site outside the port gates. The centre will provide communications facilities to enable seafarers to contact their families by telephone, Skype or other electronic means; provide recreational and shopping facilities for seafarers to purchase their necessities of life for forthcoming voyages. The importance of providing communications for seafarers who may be separated from their families for months at a time was demonstrated after Typhoon Haiyan devastated much of the costal (and therefore seafaring) communities in the Philippines just before Christmas 2013. Our grant of £15,000 to ISWAN went to the Seafarers Emergency Fund to pay for free communications for Filipino seafarers from seafarer centres around the world. Many centres are providing free phone card, sims and Wi-Fi to Filipino
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seafarers so they can call families back home. The centre’s funds could not sustain this for a long period so our grant was used to re-imburse the centres as necessary. Support for families and young people and those seeking a career in the maritime sector Our support for young people again demonstrates our partnership approach to funding and broadly focuses upon two areas. The welfare element is supported via our grants to Royal Liverpool Seamen’s Orphan Institution (RLSOI), the Sailors Children’s Society (SCS) and the Royal Navy and Royal Marines Children’s Fund (RNRMCF) who between them received grants totalling £275,000 in 2013. This total includes a grant of £35,000 to the SCS from the new Merchant Navy Fund (see below) which we set up in partnership with the Merchant Navy Welfare Board in 2013, specifically to support Merchant Seamen and their families and dependants. All three organisations provide support to children and families of seafarers. Funding from RNRMCF ranges from childcare costs, special needs education and in-home support in times of crisis to school fees where there is a special need. RLSOI specialises in helping families who have lost a seafaring parent by providing grants for the children throughout their education. SCS finds that they receive referrals often following a traumatic event such as bereavement, diagnosis of a terminal illness or desertion and that most of their families are single parent, however they do help grandparents where they have sole responsibility for their grandchildren and two parent families where one parent is too ill to work and the other acts as fulltime carer. All families are on a means tested benefit. Our support for those seeking a career at sea has for some years been focused on our support grant to the Marine Society and Sea Cadets, which goes towards their own grants fund which supports over 360 separate UK Sea Cadet units. Our Royal Charter requires us actively to promote seafaring careers to young people and the Sea Cadets fulfil this role through a national programme of structured training at its separate cadet units across the country. Further work on this training element is planned for 2014. Additionally we again supported young people, who would not normally be able to access funding, looking to pursue a career in the marine yachting sector through a grant to the UK Sailing Academy. This grant supports 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 into MCA qualifications, with Cadets aiming to qualify as MCA Officer of the Watch (3000gt) at the end of the training programme.
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Support across the UK We are pleased to report that we exceeded our commitment to spending the equivalent of the money fundraised in Scotland, on Scottish organisations. Organisations funded in 2013 again include Cobhair Bharraigh, a day centre for for the elderly (including many ex-seafarers) on the Isle of Barra, and the Peterhead and District Fishermen’s Benevolent Fund, a fund supporting retired fishermen and their families in the north east. The Scottish Nautical Welfare Society – www.snws.org.uk – supports the welfare needs of former seafarers or their dependants who are in needy circumstances. They do this by provision of a Merchant Navy Fund The Merchant Navy Fund is a collaboration between the Merchant Navy Welfare Board and Seafarers UK. Both organisations recognised that many of those with a Merchant Navy background wanted to see their donations and legacies used specifically to support British Merchant Navy seafarers and their families. Until now there has never been a Fund solely for this purpose. All the money raised will therefore be used exclusively to help finance those charities supporting our own Merchant Navy seafarers and their families. In 2013 we awarded a total of £79,920 from this fund to the organisations listed on the right:
£79,920 Awarded from the Merchant Navy Fund
quarterly grant, home visits to beneficiaries, provision of a social and lunch club a couple of times a week and the provision of periodic social outings/events. In 2013 we were able to support for the first time in many years the Sir Gabriel Woods Mariners Home – www.sirgabrielwoodsmarinershome.org. They provide dedicated care to the elderly specialising in those with Alzheimer’s, dementia and additional special care needs. Our grant was to add toilet facilities to two of the rooms at the home and convert a further two rooms into a wheelchair user friendly rooms.
Name
Description
Awarded
Care Ashore (Merchant Seamen’s War Memorial Society)
The organisation’s main activity is to provide sheltered housing with support, including; welfare support, accessing benefits, advice and transport to medical appointments. This grant is to cover the costs of the Health and Wellbeing programme which assists elderly seafarers to improve their health and fitness.
£10,000
Nautilus Welfare Fund
Mariners’ Park Care Home created a specialist wing for individuals with moderate to severe dementia. To complement this, they needed a safe and secure garden area for residents to use.
£4,920
Sailors’ Children’s Society (SCS)
As part of their support scheme, they offer each of their families a week away in one of the seven caravans owned by the Society. Due to extensive wear, the caravans needed replacing and the oldest was based in North Wales. The grant was to replace the existing unit with a new caravan to the same specification. Merchant Navy and Fishing Families represent approx. 29% of the families supported by SCS (currently 454 children in total).
£35,000
Shipwrecked Mariners
Grant to support eligible seafarers and £20,000 their families in immediate need to be allocated by Shipwrecked Mariners Society via their individual grants programme.
Nautilus Welfare Fund
Grant to support eligible seafarers in immediate need to be allocated by Nautilus Welfare via their individual grants programme.
Total
£10,000
£79,920
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Ac h i e v e m e nts an d P e rf o rmanc e
Seafarers UK Grant-making 2013
Aberdeen Seafarer’s Centre Age Concern Spain Alabaré Christian Care Centres Annual Service for Seafarers in Wales Apostleship of the Sea Armed Forces Multiple Sclerosis Support Group Barra Children’s Centre BEWSA (British Ex-Services Wheelchair Sports Association) Blind Veterans UK Broughton House Bury St Edmunds Sea Cadets Corps Care Ashore (Merchant Seamen’s War Memorial Society) Centres for Seafarers Cobhair Bharraigh Cobseo Community Housing and Therapy Community Network Earl Haig Fund Scotland East Sussex Association of Blind/Partially Sighted Erskine Hospital Ltd Felixstowe and Haven Ports Felixstowe Sea Cadet Corps Gardening Leave HCPT – The Pilgrimage Trust ISAN International Seafarers Assistance Network Islay & Jura Community Enterprises ISWAN (International Seafarers Assistance Network) Joint Services Hosanna House Group 507 Little Merlins Pre-School and Nursery Liverpool Seafarers Centre Lord Kitchener National Memorial Fund Lord Kitchener National Memorial Holiday Home Lyttelton Seafarers Centre Charitable Trust (NZ) Manchester & Salford RN Unit (HMS Biter) Manx Marine Society Marine Society & Sea Cadets Maritime Piracy Humanitarian Response Programme Marsden Point – Mission to Seafarers (NZ) Merchant Navy Association Port Welfare Vehicle Replacement Fund – MNWB Mission to Seafarers – UK MNWB Merchant Navy Medal Fund National Gulf Veterans and Families Association Nautilus Welfare Fund
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£12,500 £5,000 £2,500 £2,500 £15,000 - - £500 - - £45,000 - - £5,000 £850 £1,300 £2,000 - £2,000 £5,000 - -
£12,500 - - £15,000 - - - £45,000 - £2,850 - - - £5,000 -
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How the grants were distributed
£500 -
-
£30,000 £20,000 - £10,000 - £20,000 £20,000 - - - £3,500 - - - £3,500 £45,000 £31,500 £8,550 £4,950 - £30,000 - - £30,000 - £15,000 - - £15,000 - £550 - - - £550 £5,000 - - £5,000 - £29,769 £29,769 - - - £15,000 £11,250 £450 £3,300 - £4,673 £4,673 - - - £30,000 £30,000 - - - £10,000 - - £10,000 - £2,000 - - - £2,000 £7,000 - - £7,000 - £3,000 - - £1,500 £1,500 £60,000 - - £60,000 - £5,000 £2,500 - £2,500 - £15,000 £7,500 - £7,500 - £3,000 - £3,000 - - £2,500 - £2,500 - £10,200 £2,000 £700 £7,500 - £750 - £750 - - £2,500 £2,500 - - - £15,000 £1,800 £8,850 £4,350 - £2,000 - - - £2,000 £3,000 £1,500 £1,500 - - £104,310 - - - £104,310 £67,000 - - £67,000 - £5,000 - - £5,000 - £1,000 - - - - £1,000 £45,000 £16,650 £25,650 £2,700 - £141,250 - - £141,250 - £100 - - - - £100 £9,500 £9,500 - - - £213,170 £213,170 - - - -
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158,788
Not Forgotten Association Officers’ Association Peterhead & District Benevolent Fund Prince’s Initiative for Mature Enterprise Queen Alexandra Hospital Home Queen Victoria Seamen’s Rest Retired Fishermen (North Shields) Royal Alfred Seafarers’ Society Royal British Legion Poppy Factory Ltd Royal Cambridge Home Royal Commonwealth Ex-Services League Royal Liverpool Seamen’s Orphan Institution Royal Marines Association Royal National Mission to Deep Sea Fishermen Royal Naval Association Royal Naval Benevolent Trust Royal Navy and Royal Marines Children’s Fund Sailors’ Children’s Society Scottish Nautical Welfare Society Scottish Shipping Benevolent Association Seavision UK Seafarers UK (MCFG Subscription) Seamen’s Hospital Society Shipwrecked Fishermen & Mariners’ Royal Benevolent Society Sir Gabriel Wood’s Mariners Home Somali Senior Citizens Club South Atlantic Medal Association (1982) Southwold Sailors’ Reading Rooms SSAFA – Forces Help St David’s Home Ealing St Loye’s Foundation Stoll Foundation Toe in the Water Tyne Mariners Benevolent Institution UK Sailing Academy Universal Christian Seafarers Welfare Association Veterans Aid Veterans Outreach Support Veterans Scotland Watch Ashore GRAND TOTAL 2013 GRAND TOTAL 2012
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To Aw tal ar de d
Beneficiaries we asssisted in 2013
£10,000 £10,000 - - - £5,151 - - - - £5,151 £5,000 £3,100 £1,900 - - £61,594 - - £61,594 - £30,000 £29,000 £1,000 - - £22,510 £2,700 £450 £19,360 - £4,450 £4,450 - - - £30,000 £25,500 £4,500 - - £53,252 - - £53,252 - £5,000 - £5,000 - - £21,400 £16,400 - £5,000 - £50,000 - £50,000 - - £10,000 - £5,000 £5,000 - £188,427 £66,512 £61,760 £60,155 - £4,000 - - - - £4,000 £95,000 - £95,000 - - £100,000 - £100,000 - - £125,000 - £125,000 - - £65,408 £40,000 £25,408 - - £1,200 - £1,200 - - £25,000 - - - - £25,000 £20,000 - - - - £20,000 £108,500 £60,000 £11,000 £37,500 - £200,000 £96,000 £82,000 £22,000 - £21,771 £21,771 - - - £5,000 £5,000 - - - £5,000 - - - - £5,000 £10,282 £10,282 - - - £50,893 £44,775 £225 - - £5,893 £980 £980 - - - £5,000 - - £5,000 - £20,000 £20,000 - - - £5,000 - - £5,000 - £25,000 £24,250 - £750 - £51,000 - - - £51,000 £5,000 - - - £5,000 £20,000 £600 £800 £18,600 - £5,000 - - £5,000 - £5,000 - - - - £5,000 £4,840 - £4,840 - - £2,526,430 £888,982 £630,333 £765,611 £169,310 £72,194 £2,508,667 £928,967 £468,780 £653,462 £387,500 £69,958
A n n u a l Re p o r t 20 1 3 1 3
Fundraising and Communications There was year on year growth in 2013 for Individual Giving, and we will be working hard to maintain that during 2014.
In 2013 Seafarers UK continued to benefit from a fantastic support base of individual donors, corporate supporters, fundraisers, Trusts and volunteers. Without them our funding would not stretch nearly as far, and our wider charitable activity work would be significantly less. We are therefore incredibly thankful to all those who in 2013 helped our beneficiaries by supporting us in one form or another, whether via means of a one-off donation, a gift in kind, fundraising, regular giving, or support for our campaigning. Such support is equally and greatly appreciated and never taken for granted, and we hope it will grow as the scope of our work in the years to come increases. Indeed we constantly strive to review the ways in which we encourage and acknowledge donations, whilst most importantly listening to and respecting all our supporters’ needs. Project fundraising A key area of strategic development in 2013 was defining more clearly our ‘asks’ to potential donors, particularly for Trusts and companies, with a greater focus on outcomes. The careful development of ‘Project Specific Funding’ gives us more flexibility and a greater ability to work with organisations to develop viable propositions for funding, thus helping organisations in need in two ways – assisting them with both project development and fundraising to meet the welfare needs of their seafaring beneficiaries. Such projects are more specific in their outcomes and whilst
1 4 S e a f a re r s U K
not taking away from the charity’s core, longer-term funding responsibilities, sit slightly outside of them. Project fundraising encompasses Commonwealth and international seafarer welfare projects (including safety and health), as well as education and training projects within the UK. Essentially it enables the charity to seek out and support new worthy causes, improving the overall efficiency of the sector whilst importantly supporting more seafarers and their dependants. This new focus will present fresh opportunities for us to work pro-actively with existing and potential beneficiaries in accessing additional income streams from both Corporates and Trusts in future years. Corporates and Trusts The charity’s corporate support continued to build in 2013. Notable support came from BP Shipping, Rolls Royce, Carnival UK, Fish’n’Chick’n and of course our superb partnership with Fuller, Smith & Turner which this year raised over £36,000. This partnership has now raised well over £100,000 since its launch. We are also proud to have a new commercial partnership with the Deep Blue Fish and Chips chain. 2013 saw the charity make some significant inroads in the marine services sector as we made a concerted effort to formalise our support from the maritime contingent in the City. This effort was strengthened by our charity partner status in the inaugural London International Shipping Week in September.
Trusts income markedly increased in 2013. This resulted from dedicated resource, an increase in the number of applications and a more focused approach to potential donors. During the year we sought financial support for two key areas of our work; Children in Seafaring Families and Seafarers of Working Age. We would particularly like to thank the Garfield Western Foundation for their £20,000 donation towards our support of Seafarers of Working Age. We also applied for financial assistance for some specific projects in conjunction with beneficiary service providers. We were particularly thankful for the £5,000 in matched funding from the Lloyd’s Patriotic Fund towards the Royal Marines Association’s new Fisher House sports facility for military patients in Birmingham. This mixed fundraising approach will continue in 2014. Individual fundraising Individual Giving continues to be the engine room of our fundraising, and we will be working hard to maintain that during 2014. Last year we reported a strong response to our newly launched Children’s Appeal, and by the time the appeal closed in 2013 we had raised in excess of £150,000. At the end of the year we also held a traditional Christmas Appeal. This was launched via our magazine, Flagship, but for the first time we also delivered an on-line version of the appeal, recognising that many of our supporters are now comfortable making online donations. Both options proved to be a success.
F undraising and communications
£100,000 Raised from HMS Illustrious event
During the year some of our supporters chose to celebrate a special occasion by asking their friends and family to make donations to Seafarers UK. This seems an increasingly popular way of supporting a charity and we feel particularly lucky to play a part in such celebrations. We have also seen a rise in In Memoriam donations and many of which are received with heart-warming stories from families and friends of those who have passed away but who had a close connection with the sea. We developed some new initiatives for those keen to support our charity in alternative ways during 2013. Our supporters can now initiate donations to Seafarers UK simply by shopping via websites such as The Giving Machine and Easyfundraising, donating clothing using Clothes for Charity or even selling unwanted items on eBay. We hope to develop this area further in 2014. The Merchant Navy Fund In its first year the Merchant Navy Fund, a joint venture between the Merchant Navy Welfare Board and Seafarers UK, received significant support from individuals wishing to see their donations support UK Merchant Navy seafarers. An on-going marketing campaign resulted in both regular and non-regular donations gradually increasing, and by the end of 2013 there were sufficient funds accrued to give several significant grants. These will go to new initiatives and will go some way towards improving help and support given to UK Merchant Navy seafarers.
Event fundraising The key fundraising event in 2013 was a reception and dinner for 350 guests held onboard the aircraft carrier HMS Illustrious on the River Thames on 9 May with HRH The Duke of York, KG as the guest of honour. This was in conjunction with the Royal Navy and was part of the 70th anniversary commemorations for the Battle of the Atlantic. The two beneficiary charities for this event were Seafarers UK and Royal Navy & Royal Marines Charity and raised over £200,000, split equally by the two charities. The evening began with a champagne reception on deck and a fly-past of a Fairey Swordfish with stirring music from Portsmouth Royal Marines Band. The business of fundraising events in general, in particular challenge events, was a tough environment for Seafarers UK to be in during 2013, as it was for all charities. Nevertheless, our amazing supporters continued to run, swim and cycle for us, with the London Marathon raising just over £40,000 in particular. Events such as the week long Fish & Chip Feast in October and our ‘Get Stripey’ campaign in May (as part of Nautical Friday) also continued to gain good levels of participation, particularly in terms of social media, thus demonstrating untapped potential with many organisations to get involved in 2014.
Brand review To address some inconsistencies in our editorial style and visual identity, as well as to seek feedback on perceptions of the charity, we undertook a strategic brand review in 2013. There was a sense that potential new supporters might not grasp enough about the organisation to be moved to action. It was also felt that the charity needed to begin leveraging the brand more strategically so as to better deliver on the organisation’s key business objectives. The review itself involved a representative survey of donors, interviews with key partner organisations, beneficiaries and corporates, and workshops with staff and Trustees. The results of the review will be seen in 2014, with an evolved look and feel being rolled out as marketing materials, publications and stationery are slowly replaced or updated. Brand guidelines for staff, volunteers and Trustees, an updated logo and a new communications and messaging strategy, are also core deliverables.
A n n u a l Re p o r t 20 1 3 1 5
F undraising and communications
Committee and regional fundraising The thread running through regional fundraising in 2013 was encouragingly strong in England and Wales. Volunteer committees were steadfast in their fundraising activities and remained in good heart. Committee fundraising activities included fish and chips and quiz evenings, coffee mornings and cake sales, lectures and talks, cocktail and garden parties, a Scottish Reeling Ball, Military Wives Choir concerts and a host of other local activities, generally flying the flag for Seafarers UK. Royal Marines Band concerts in England and Wales enjoyed a marked increase in audience numbers with the additional venue of Barnstaple having a full house, as did Bristol with an audience of 1,200. It was also a year of solid fundraising achievement in Scotland and Northern Ireland thanks to the efforts of our local committees, supporters and sponsors. The programme of Royal Marines Band concerts at Aberdeen, Inverness, Perth, Dunfermline Edinburgh and Carlisle continued to be a good source of income for the charity in the north. The Edinburgh Usher Hall concert attracted an audience of 1,100 and was once again preceded by a well-attended reception, a successful formula reflected at the Aberdeen concert. An opportunity to run a concert in Northern Ireland at Carnmoney Belfast was made possible by the deployment of the RM Band to Northern Ireland for the Battle of the Atlantic commemoration. Lastly, a party of Seafarers UK supporters and sponsors were privileged to enjoy VIP treatment at the Royal Edinburgh Tattoo with Seafarers UK once again being the beneficiary of a generous £20,000 grant from the Tattoo Trustees.
1 6 S e a f a re r s U K
Campaigning Seafarers Awareness Week took place on 24-30 June in 2013 and promoted the fact that seafarers ‘keep the UK afloat’, with 95% of imports and 75% of exports carried by ship. We actively encouraged beneficiary organisations to make the most of the week-long opportunity, raising their own profile and, where appropriate, raising funds. There were events for children and adults alike, from photographic and art competitions to public ‘open days’ and model ship building. The Sailors’ Children’s Society took the opportunity to arrange a voyage on the historic sailing sloop Spider T, calling at East Coast ports to ‘spread the word’. The Bristol Port Company supported staff members in a ‘sponsored row’ and generously donated to our Merchant Navy Fund as a result. And in Scotland, Aberdeen’s Lord Provost hosted a special reception in the Town House. VIP support for Seafarers Awareness Week also came in the form of warm words from the Shipping Minister, Stephen Hammond MP, an Early Day Motion signed by 35 MPs and The Second Sea Lord Vice Admiral David Steel enthusiastically promoting the importance of seafaring on film. BBC TV ‘Coast’ presenter Neil Oliver also kindly agreed to launch the campaign and helped Seafarers UK to secure £120,000 worth of radio, TV and web media coverage. Communications An updated Seafarers UK website, launched in June 2013, provides a more user-friendly navigation experience for visitors along with a dedicated press releases section, more case studies, and a password protected area for local fundraising volunteers with information on organisational policies. A new ‘Search’ facility, a text re-sizing
function for increased accessibility, and ‘give as you shop’ options have also been made available. Looking ahead plans are being put in place to further develop the site with improved design, navigation, architecture, functionality and accessibility. Flagship, our main supporter publication, continued to be well received in 2013. Readers were also able to access an online version of each issue using page-turning software on our website. To save on production and mailing costs, we reduced to two issues per year (Spring and Winter) as well as significantly cutting the number of adverts and pages, yet still retaining the vital information about the charity’s work. Our e-newsletter, Flagpost, continued to provide supporters with updates on recent or upcoming events and activities, going out to close to 2,000 people roughly once every six weeks, with more supporters continuing to sign up via our website. In 2013 the charity’s social media presence proved popular with existing supporters as well as attracting a new audience. By the end of the year we had reached close to a combined 8,500 followers across our two Twitter accounts and 3,500 likes for our two Facebook pages, allowing us to communicate daily with ever greater numbers of supporters. Lastly, we worked hard in 2013 to strengthen the message about our cause by building a bank of illustrative examples on the impact of our funding. We developed a new toolkit to help our beneficiary charities identify case studies that demonstrated more clearly how their beneficiaries had received help as a direct result of our funding. Where appropriate we also began to conduct direct interviews with individual beneficiaries and their families.
F undraising and communications
Our amazing supporters continued to run, swim and cycle for us, with the London Marathon raising over £40,000.
£100,000 Raised from Seafarers Ale sales in 5 years
A n n u a l Re p o r t 20 1 3 1 7
S tructure , G ov ernance and M anagement
Structure, Governance and Management The Audit and Governance Committee, which meets at least twice a year, continues to review the operation and effectiveness of the control framework. 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. A five year strategic plan is in place to complement the Business Plan. This is reviewed and updated every year. Although our essential Objects remain unchanged, following the amendments to the Royal Charter, the Strategic Plan takes into account changes in demographic profiles and the emergence of new organisations. It lays out a Vision for the future of Seafarers UK, and suggests strategies to achieve that desired state. Our core strategies are set out in more detail on page 7. Name and registered office 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 Logo-ed goods are sold and commercial events are operated.
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 (G)
Vice Presidents The Most Rev. & Rt Hon. The Lord Archbishop of Canterbury His Eminence the Cardinal Archbishop of Westminster Chief Rabbi of the United Hebrew Congregations The Rt. Rev. the Moderator of the General Assembly of the Church of Scotland
Surgeon Commodore P J Buxton OBE QHP RN (G)
The Rt. Rev. & Rt. Hon. The Bishop of London
T. Cadman (A)
The Rt. Rev. the Bishop of Sodor and Man
M. Carden (G) M. Dickinson (G) Major P. M. H. Dunn RM (A) Mr Alderman The Hon Jeffrey Evans A. Lydekker (G) (resigned May 2013) C. Marr (G)
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
J. Monroe (G) Captain D. A. Parsons MNI (*G) S. Rivett-Carnac (F) J. Saunders Watson (*F) Ms D. Sterling
The Chaplain of the Fleet Admiral of the Fleet Sir Benjamin Bathhurst GCB, DL Admiral Sir Jock Slater GCB, LVO, DL Sir Brian Jenkins GBE Admiral Sir William O’Brien KCB, DSC
1 8 S e a f a re r s U K
S tructure , G ov ernance and M anagement
Admiral Sir Brian Brown KCB, CBE
Captain Sir Miles Wingate KCVO
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
Rear Admiral Sir Donald Gosling KCVO, RNR
The Rt. Worshipful the Mayor of Southampton
Rear Admiral D. J. Mackenzie CB
It is with great sadness that we report the death on 6 September 2013 of Vice Admiral Sir Cameron Rusby KCB, LVO, a valued and long-serving Vice President of the Charity.
Vice Admiral the Hon. Sir Nicholas Hill-Norton KCB
Sir Ian Denholm CBE, JP, DL Sir John Ritblat FRICS
Bankers NatWest Bank plc City of London Office PO Box 12258 1 Princes Street London, EC2R 8PA 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 UBS AG 3 Finsbury Avenue London, EC2M 2AN
F. M. Everard CBE Captain D. C. Glass OBE The Rt. Hon. the Lords Mayor of the City of London, Cardiff, and Bristol The Rt. Hon. the Lords Provost of the Cities of Edinburgh and Glasgow The Lords Provost of Aberdeen and Dundee
Management Director General: Commodore Barry Bryant CVO, RN
Auditors KPMG LLP, 1 Forest Gate, Brighton Road, Crawley, RH11 9PT
The Trustees have authorised a new strategy which aims to increase the amount of charitable activity and expenditure that Seafarers UK funds on a long term basis.
Director of Finance: Ian Wardle ACMA Director of Grants and External Operations: Dennis Treleaven MBA Director of Fundraising and Communications: Nigel Shattock Executive Manager: Robina Whitehorn
Key to General Council sub-committee membership: F Member of the Finance and Investment Committee G Member of the Grants Committee (formerly Distribution Committee) A Member of the Audit and Governance Committee * Chairman of Committee
A n n u a l Re p o r t 20 1 3  1 9
S tructure , G ov ernance and M anagement
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 proactive as possible in using our resources for the greater good of the maritime and tri-service charity and welfare sectors. For several years we have been able to use our knowledge and experience to advise others such as Trinity House, who have grant money to target but do not have a dedicated distribution system. We are also able to use our HR, financial and Grants 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. 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 • Grants • Audit and Governance
20 S e a f a re r s U K
Members of these Committees are shown on page 18. 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 Executive management software system project has been designed to enable individual staff to have closer control and ownership of their budgetary areas, and allow more meaningful management accounts to be produced. The Council has delegated to Executive management the implementation of the system of internal control, including those concerning Voluntary Committees. Procedures and 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 The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The Trustees are responsible for preparing financial statements for each financial year, which give a true and fair view (in accordance with United Kingdom Generally Accepted Accounting Practice) of the state of affairs of the Trust and of the surplus or deficit of the Trust for that period.
S tructure , G ov ernance and M anagement
In preparing those financial statements, the Trustees are required to:
numbers together plus the magnitude. In this case a score of 12 (1x6)+6=12 would make this a fairly low area of worry.
• select suitable accounting policies and then apply them consistently;
Following a recent update of the Charity Commission’s guidance CC26, Charities and Risk Management, Seafarers UK revisited the management of risk and use the four basic strategies of transferring the financial consequences, avoiding the activities, managing the risk or accepting the risk is in operation, thus minimising the possible occurrence and effects.
• make judgments and estimates that are reasonable and prudent; • state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Trust will continue in business. The Trustees confirm that they have complied with the above requirements in preparing the financial statements. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Statement of Recommended Practice “Accounting and Reporting by Charities (revised 2005)”, other current statutory requirements and the governing document. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each Trustee accepts that: • In so far as the Trustee is aware, there is no relevant audit information of which the Trust’s auditors are unaware; and • the Trustee has taken all the steps that he or she ought to have taken as a Trustee in order to make himself or herself aware of any relevant audit information and to establish that the charity auditors are aware of that information. 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
Seafarers UK reviews and updates its risk register on a regular basis. The Trustees confirm they are satisfied that there are sufficient controls and processes in place to ensure that the key risks identified are being managed effectively. Reserves policy The Trustees have authorised a new strategy which aims to increase the amount of charitable activity and expenditure that Seafarers UK funds on a long term basis. This expansion of the work of the charity will include the support of new projects and organisations within our Commonwealth remit whilst maintaining our focus on our core programme of grants to our traditional UK-based beneficiary group. In connection with this strategy the Trustees have agreed a new Reserves policy which seeks to maintain adequate reserves for our long-term commitments. We ensure sufficient reserves are available for the future years’ grants expenditure; these are now included in our designated funds and shown on page 34. We will aim for a regular drawdown of reserves to match the projected demographic profile of our beneficiary base. General Reserves will be held in order to take account of any fluctuations in fundraising achievements and in investment values. The Trustees have agreed a policy of holding Unrestricted Funds equivalent to not less than twelve month’s operating expenses. Restricted and Permanently endowed Funds are not affected by this new policy. Reserves are defined as all cash, investments, current assets less current liabilities held in the name of Seafarers UK and its trading subsidiary. As at 31 December 2013 the charity’s free reserves, after designations, were £2,569k, which represented 18 months of forward operating expenditure. The Trustees are comfortable with the level of reserves and do not consider them to be excessive.
A n n u a l Re p o r t 20 1 3 2 1
Financial Review 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 2013 were £2.86 million compared with £3.36 million in 2012, representing a decrease of £498k, 14.8%. This was across the several income streams, including, Legacies £238k, Investments £225k and Fundraising £39k, all decreasing. Although the income streams were lower than in 2012, the underlying figures are not so disheartening. Legacies are down both in average value and number of cases; we have expected a downturn in legacy income for some years. The pipeline for legacy income (cases notified but not received) starts 2014 at a higher level than for several years. Although the income received from our investments decreased in 2013 the market valuation has increased by £994k, despite a draw down from investments of an additional £1,250k, see page 23 for more information. Fundraising has declined as with many other charities. To halt this, a new Fundraising strategy focusing on projects has been added to the mix of income streams, see page 14 for more information. Overall our expenditure for 2013 has increased slightly from £4.4 million in 2012 to £4.5 million in 2013.
2 2 S e a f a re r s U K
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. One of our main financial aims for 2013 was to award £2.5 million in grants and last year we achieved this by giving 102 grants to 89 maritime charities and organisations, a total of £2,526k compared to £2,509k in 2012. See pages 6 through to 11 for more information about our achievements and grants awarded in 2013. The charitable activities are much more than financial grants; we also assist with the administration of grants, finance and Human Resource administration for other organisations, we attend and host meetings aimed at improving sector efficiency and we raise awareness of maritime charities and seafarers through our campaigning.
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 29.1% in 2013, compared to 29.5% in 2012. More information can be found on pages 14 to 16.
F inancial R e v iew
Investments 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 and Investment Committee on a regular basis. The individual managers are set targets either to produce a return of 4% plus inflation during the year (through payment of a dividend or capital growth) in line with market conditions prevailing during the year, or not to lose money within the year. Investment managers report to each Finance and Investment Committee. These reports include performance against targets and major factors affecting., or likely to affect, the investments. In 2013 our investments market valuation increased by £994k with managed portfolios increasing by £797k and properties increasing by £197k. The overall Investment valuation is now £38,691k compared to on from £37,697k in 2012.
Investment Manager Performances Ruffer LLP operate an absolute return policy and aim not to lose money on a twelve month rolling basis , followed by outperforming cash returns. In 2013 Ruffer returned 10.9% against a Bank rate of 0.5% and since inception (April 2010) have returned 24.4% with the bank earning 1.9%. Ruffer have also outperformed RPI in these periods, these were 2.7% in 2013 and 14.8% since inception. Veritas Investment Management LLP 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 25.8% on a CPI of 11.6%, and 9.4% in the last twelve months on a CPI of 2.0%. We also have a private equity fund, where funds are invested in new ventures; we plan to let this investment run its natural course, with the expected termination date currently between 2020-2023. This is now in its eighth year and produced a net income of £128k and a market valuation decrease of £267k, a decrease of 9.8% for 2013. The investments also include rental properties, which are the residential flats at 7 Hatherley Street. In December 2012, a commercial let was agreed for the ground floor studio, this contract will terminate at the end of February 2014, with new tenants being sought. The valuation of these properties increased by £197k.
Governance Governance decreased in 2013 from £177k to £176k, including more staff time due to PQASSO accreditation being achieved. Practical Quality Assurance System for Small Organisations (PQASSO) is a performance evaluation system and quality mark for charitable organisations in the UK, which is mainly achieved through improved systems and efficiencies. Approved by the General Council on 16th April 2014 and signed on its behalf by:
J Saunders Watson, Treasurer
The charitable activities are much more than financial grants; we also assist with the administration of grants, finance and Human Resource administration, we attend and host meetings aimed at improving sector efficiency and we raise awareness of maritime charities and seafarers through our campaigning.
A n n u a l Re p o r t 20 1 3 2 3
F inancial R e v iew
Statement of Financial Activities for the year ended 31 December 2013 2013 2012 Incoming resources Note Unrestricted Restricted Endowment Total Total Funds Funds Funds Funds Funds (£’000) (£’000) (£’000) (£’000) (£’000) Incoming resources from generated funds Voluntary income 2 871 354 - 1,225 1,484 Activities for generating funds 3 339 103 - 442 460 Investment income 4 975 183 - 1,158 1,383 Charitable activities 5 37 - - 37 33 Total incoming resources
2,222 640
Resources expended Costs of generating funds Costs of generating voluntary income 6 471 - Costs of activities for generating funds 7 481 - Costs of managing investments 8 355 67 Total cost of generating funds 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
Total Charitable Activities Governance costs
10
Total Resources expended
- 2,862 3,360
- - -
1,307 67 - 1,374 1,304
940 623 786 (4) 201
71 94 86 196 7
- - - - -
2,546 454 167
-
-
4,020 521
167 177
- 4,541 4,424 (1,679) (1,064)
1,282 362 1,337 763 197 (395)
2,527 (6) 295 2,816 730
Net movement in funds
729 113 295 1,137
Reconciliation of Funds Total funds brought forward 32,261 1,092 Total funds carried forward
5,965
(334)
39,318 39,652
32,990 1,205 6,260 40,455 39,318
The above results relate wholly to continuing activities. There are no other gains or losses and as such a separate statement of Total Recognised Gains and Losses has not been prepared. There is no material difference between the results above and the historical cost equivalent.
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1,011 1,045 717 528 872 722 192 344 208 304
- 3,000 2,943
Net (outgoing) resources (1,798) 119 - before transfers and other gains and losses Other recognised gains and losses Realised Gains 14 1,141 (3) 144 Unrealised Gains 14 1,189 (3) 151 Property Revaluation Gain/(Loss) 13 197 - - Net Gains/(losses) on investment assets
471 447 481 466 422 391
F inancial R e v iew
Balance Sheet as at 31 December 2013 2013 2012 Incoming resources Note Unrestricted Restricted Endowment Total Total Funds Funds Funds Funds Funds (£’000) (£’000) (£’000) (£’000) (£’000) Fixed assets Tangible assets 13 1,360 - - 1,360 1,378 Investments 14 31,226 1,205 6,260 38,691 37,697 Total fixed assets
32,586 1,205 6,260 40,051 39,075
Current assets Debtors and prepayments 15 Cash at bank and in hand
389 1,749
Total current assets
2,138 - - 2,138 2,305
Liabilities Creditors : Amount falling due within one year
(1,734)
16
- -
-
- -
-
389 1,749
(1,734)
551 1,754
(2,062)
Net current assets
404 - - 404 243
Net assets
32,990 1,205 6,260 40,455 39,318
Property Revaluation Reserve Designated Reserves Other Reserves Total Funds as at 31 December 2013
2,790 27,631 2,569
- - 1,205
- - 6,260
2,790 27,631 10,034
2,593 36,725
17 32,990 1,205 6,260 40,455
Total Funds as at 31 December 2012
32,261 1,092 5,965 39,318
The financial statements set out on pages 24 to 37 were approved by the General Council on the 16th April 2014 and signed on its behalf by:
Vice Admiral P Wilkinson Chairman
J. Saunders-Watson Treasurer
Cdre. B.W. Bryant Director General
A n n u a l Re p o r t 20 1 3 25
F inancial R e v iew
Cash Flow Statement for the year ended 31 December 2013
Note 2013 2012 (£’000) (£’000) Net cash outflow from operating activities 1 (2,974) (1,569) Returns on investment and servicing of finance 2 1,158 1,383 Capital expenditure and financial investments 3 1,811 1,278 (Decrease)/Increase in cash in the year Cash at bank and in hand at 1st January Cash at bank and in hand at 31 December
(5)
1,092
1,754 662 1,749 1,754
(Decrease)/Increase in cash in the year
(5)
1,092
1. Reconciliation of net (outgoing) resources to net cash outflow from operating activities Net (outgoing) resources Dividend income Interest receivable Rental income Depreciation – fixed assets Loss on sale of fixed assets (Increase) in debtors and prepayments Increase in creditors
(1,679) (799) (276) (83) 30 (1) 162 (328)
(1,064) (969) (350) (64) 39 (1) (221) 1,061
Net cash outflow from operating activities
(2,974)
(1,569)
2. Returns on investments Dividend income received Interest received Rental income received
799 276 83
969 350 64
Net cash inflow from returns on investments
1,158
1,383
3. Capital expenditure and financial investments Purchase of tangible fixed assets (13) Purchase of fixed asset investments (6,658) Sale of fixed asset investments 8,482
(16) (6,852) 8,146
Net cash inflow from capital expenditure
26 S e a f a re r s U K
1,811
1,278
F inancial R e v iew
Notes to the accounts for the year ended 31 December 2013 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 12 13 14 15 16 17 18 19 20
Information Regarding Employees And Trustees Pension Obligation Tangible Assets Investments Debtors And Prepayments Creditors Falling Due Within One Year Total Funds Subsidiary Undertaking Related Parties Assistance To Other Organisations
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.
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 2011, 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 endowment 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.
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.
Designated Funds Designated Funds are the projected spend on each category of charitable activity. See also the reserves policy on page 21.
A n n u a l Re p o r t 20 1 3 27
F inancial R e v iew
Notes to the accounts (continued) for the year ended 31 December 2013
1. Accounting Policies (continued) D
Resources Expended All expenditure is accounted for on an accruals basis and classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to a particular category they are allocated to activities on a basis consistent with the use of the resources. Premises overheads are allocated by reference to space utilisation and other overheads on the basis of staff numbers.
1
Costs of generating funds are those costs incurred in seeking voluntary and legacy income.
2
Charitable activities This includes all expenditure (including grants which are recognised as a liability once the relevant committees have approved payments) directly related to the objects of the Fund and comprises the following: • • • • •
3
4
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 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. 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 .
28 S e a f a re r s U K
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 10% Computer Equipment 20% Office Equipment 15% Freehold land is not depreciated.
F Investments UK freehold land and buildings held as an investment are included in the accounts on the basis of professional valuations made every four years. Investment freehold plots of land held in the Bahamas are stated at valuation (on the basis of local real estate agents). Other investments are stated at market value at 31 December. Unlisted 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.
F inancial R e v iew
2. Voluntary Income Donations Legacies
Unrestricted Restricted 2013 2012 (£’000) (£’000) (£’000) (£’000) 310 289 599 620 561 65 626 864
871
354
1,225
1,484
3. Activities for generating funds Events Advertising from Flagship Magazine Corporate Sponsorships Trading
283 103 386 13 - 13 16 - 16 27 - 27
397 13 31 19
339 103 442
460
Dividends Interest Rental income
663 229 83
136 799 47 276 - 83
969 350 64
975
183
1,158
1,383
Re-charges to other organisations
37
-
37
33
37
- 37
33
4. Investment Income
5. Income from Charitable Activities
Income from Charitable Activities are charges to unrelated organisations who contribute to the Maritime Charity Sector, the re-charges are mainly for Grant and Financial services. They also include expenses incurred on their behalf.
6. Costs of Generating Voluntary Income Donations Legacies
41 55
- 416 409 - 55 38
471
- 471
447
Support costs included in above figures
167
-
167
135
- 481
466
481 - 481
466
7. Costs of activities for generating funds Events
Support costs included in above figures
481
74
-
74
90
A n n u a l Re p o r t 20 1 3 29
F inancial R e v iew
Notes to the accounts (continued) for the year ended 31 December 2013
8. Cost of managing investments Cost of maintaining rental properties Investment Managers Fees/Other costs
Unrestricted Restricted 2013 (£’000) (£’000) (£’000) 39 - 39 316 67 383
2012 (£’000) 30 36
355
67
422
391
14
-
14
18
Support costs included in above figures
9. Charitable Activities Seafarers’ Older and Dependants ex-Seafarers & Families (£’000) (£’000) Charitable Grants Authorised 889 630 Grants written back - - Net Grants Armed Forces Day Assistance to other organisations Campaigns Charitable Event Costs Communication Grant administration Seafarers Awareness Week Support costs
Seafarers of Maritime Improving Total Total Working Age Youth Groups Efficiency 2013 2012 (£’000) (£’000) (£’000) (£’000) (£’000) 766 169 72 2,526 2,509 - - - - (11)
889 630 - - 24 2 28 42 - 26
- -
766 169 72 2,526 2,498 - -
17 1 20 30 - 19
21 2 24 36 - 23
- -
1 75
1 75
5 - 5 8 - 5
2 69 - 5 2 79 3 119 51 51 2 75
Total Charitable Activities – 2013
1,011
717
872
192
208
Total Charitable Activities – 2012
1,045
528
722
344
304
35 55 43 27 86 41 158
3,000
2,943
Grants authorised are shown by receiving organisations on pages 12 & 13 Total Total 2013 2012 (£’000) (£’000) Support costs included in Charitable activities Staff Costs 38 84 Other Costs 37 74 Total Support costs for Charitable activities
3 0 S e a f a re r s U K
75
158
F inancial R e v iew
10. Governance Costs Total Total 2013 2012 (£’000) (£’000) Auditors remuneration for audit services * 27 27 AGM 6 6 Trustee expenses - 2 Staff support costs 103 92 Other support costs 31 50 167 177 * No non-audit fees were incurred or paid to KPMG LLP during 2012 or 2013. Support costs include PQASSO, Annual Report, Meetings for Trustees, staff time and overheads.
11. Information regarding employees and Trustees 2013 2012 Number of full time equivalent employees during the year : FTE FTE Generating Charitable Income 10 8 Charitable activities 9 9 Governance 1 1 20 18 Staff costs comprise Wages & Salaries Redundancies Social Security Money Purchase Pension scheme Contributions Other Benefits
(£’000) 789 - 81 49 15
(£’000) 748 4 78 42 15
934 887 Seafarers UK contribute to personal pension plans through Aviva, see note 12.
The number of employees paid over £50,000 during the year (salary plus taxable benefits excluding employer pensions contributions & redundancy payments) was : 2013 2012 (£’000) (£’000) £60,000 to £70,000 - 3 £70,000 to £80,000 3 £80,000 to £90,000 - 1 £90,000 to £100,000 1 All four employees earning more than £50,000 participate in the Personal Pension Plan. The contributions were £7,041, £7,149, £7,388 and £8,675 from lowest to highest paid respectively, (2012 were £5,012, £5,083, £5,088 and £7,821) were paid into the scheme during the year. The Trustees neither received nor waived any emoluments during the year (2012: nil). Trustees are entitled to reimbursement of expenses incurred on Fund business
and expenses of £836 were paid to three Trustees (2012 £1,395 paid to three Trustees) which is mainly travel expenses. A further £894 on subscriptions (£439: 2012) and Insurance Indemnity fees paid by Seafarers UK were £618 (2012: £689).
A n n u a l Re p o r t 20 1 3 3 1
F inancial R e v iew
Notes to the accounts (continued) for the year ended 31 December 2013
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 £49k (2012 : £42k).
13. Tangible Assets Freehold Fixtures Land and Fittings & Buildings Equipment Total (£’000) (£’000) (£’000) Cost or Valuation at 1st January 1,325 132 1,457 Additions at Cost - 13 13 Less disposals - (7) (7) Cost or Valuation at 31st December
1,325
138
1,463
Accumulated Depreciation at 1st January Charge for the year Less : Eliminated on Disposals
- 12 -
79 18 (6)
79 30 (6)
Accumulated Depreciation at 31st December
12
91
103
Net Book Value at 31st December 2013
1,313
47
1,360
Net Book Value at 31st December 2012
1,325
53
1,378
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. All properties were revalued as at 31 December 2012 by Third Sector Properties, using the Royal Institute of Chartered Surveyors appraisal valuation. The original historical cost was £456,000. Investments are shown in more detail in Note 14.
3 2 S e a f a re r s U K
F inancial R e v iew
14. Investments Market Value at 1st January Additions at Cost Sales at Book Value Investment Property Revaluation Investment Property Transfer Change in Market Value of Non Property Investments
2013 2012 £’000) (£’000) 37,697 37,544 6,658 6,852 (8,480) (8,144) 197 (25) - 345 2,619 1,125
Market Value at 31st December
38,691
37,697
Historical Book Value at 31st December
34,157
34,500
Analysis of Market value at 31st December Interest Bearing Stocks and Deposits UK Stocks Non UK Stocks Deposits
2013 (£’000)
12,689
7,338 3,354 1,997
Equities UK 8,293 Overseas 15,569 23,862 Freehold Land and Buildings at Valuation 2,140 Total
38,691
2012 (%) (£’000)
(%)
19.0 8,138 21.6 8.7 4,239 11.2 5.2 584 1.5 32.9 12,961
34.3
21.4 8,664 23 40.2 14,129 37.5 61.6 22,793 60.5 5.5 1,943 5.2 100.0 37,697
100
There were no individual holdings of investments which exceeded 5% of the total market value of investments at 31st December 2013 (nil 2012). Freehold Land and Buildings includes flats held for investment purposes at 7 Hatherley Street which were valued in 2012 at £1.895 million by Third Sector Properties, Chartered Surveyors, using the RICS appraisal and valuation manual. In 2013 an increase valuation is based on Office for National Statistics, average increase for the locality. The investment Property in the Bahamas was revalued as at 31st December 2008 at £47,647 and the management are not aware of any material changes since the last valuation.
15. Debtors and Prepayments 2013 2012 £’000) (£’000) Debtors 81 80 Prepayments 32 41 Amount Due from Subsidiary Undertaking 4 4 Accrued income 272 426 389 551
A n n u a l Re p o r t 20 1 3 3 3
F inancial R e v iew
Notes to the accounts (continued) for the year ended 31 December 2013
16. Creditors Falling Due Within One Year 2013 (£’000) Grants payable 1,556 Accruals 118 Trade Creditors 60
2012 (£’000) 1,930 111 21
2,062
1,734
17. Total Funds Gains/Losses Balance Incoming Expenditure 01.01.13 Resources and Transfers (£’000) (£’000) (£’000) Unrestricted General Funds 29,471 2,222 (29,124) Designated Funds For Older and Ex-Seafarers - - 8,094 For Seafarers’ Dependants and Families - - 4,187 For Seafarers of Working Age - - 11,722 For Maritme Youth Groups - - 2,791 For Improving Efficency within the Maritime Sector - - 837 Property Revaluation reserve 2,790 - - Total Unrestricted Funds
32,261
2,222
(1,493)
Balance 31.12.13 (£’000) 2,569 8,094 4,187 11,722 2,791 837 2,790 32,990
Restricted Funds Royal Naval Officers’ Fund 645 78 (20) Joyce Pratt Legacy 31 3 (3) Beryl Joyce Threadkell Legacy 103 10 (15) Sheila Constance Woods Legacy 288 28 (10) Commonwealth Fund - 5 - Merchant Navy Fund 5 155 (115) Children’s Appeal - 92 (92) Restricted to Scotland - 22 (22) Event Sponsorship - 1 (1) Individuals - 5 (5) Albert Trotter Legacy - 65 (65) Marine & Sea Cadets (TS Royalist) (25) 25 -
1,047 489 (348)
703 31 98 306 5 45 1,188
3 4 S e a f a re r s U K
F inancial R e v iew
17. Total Funds (continued) Restricted Income/(Expenditure) from Permanently Endowed Funds
Gains/Losses Balance Incoming Expenditure 01.01.13 Resources and Transfers (£’000) (£’000) (£’000)
Inglis Fund (incorporating the van de Kasteele scholarship fund) Merchant Navy South Africa Scholarship Scheme Royal Navy War Libraries Endowment Fund South African Women’s Auxiliary Service Arthur T. Jeffress Fund David Richards Trust Henry Herbert Wills Fund Total Permanently Endowed Funds
Balance 31.12.13 (£’000)
-
24
(24)
-
-
6
(6)
-
- 45 - - -
6 11 76 22 6
(6) (39) (76) (22) (6)
17 -
45
151
(179)
17
Total Restricted Funds 1,092 640 (527) 1,205 Permanently Endowed Funds Endowed General Purposes 785 - Inglis Fund (incorporating the van de Kasteele 834 - scholarship fund) Merchant Navy South Africa 197 - Scholarship Scheme Royal Navy War Libraries Endowment Fund 207 - South African Women’s Auxiliary Service 379 - Arthur T. Jeffress Fund 2,581 - David Richards Trust 766 - Henry Herbert Wills Fund 216 - Total Permanently Endowed Funds Total Funds
5,965 39,318
39 41
824 875
9
206
10 19 128 38 11
217 398 2,709 804 227
- 295 2,862
(1,725)
6,260 40,455
In 2013 transfers of £27,631,000 were made from unrestricted general funds to a designated fund for each charitable activity to ensure that sufficient funds are available for future grant in each category expenditure in accordance with the new reserves policy.
A n n u a l Re p o r t 20 1 3 3 5
F inancial R e v iew
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. 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. Commonwealth Fund Funds available in the Commonwealth. Excluding the UK. Merchant Navy Fund Funds for Merchant Navy.
Endowment Funds Children’s Appeal Funds to assist Children of Seafarers Restricted to Scotland To assist in Scotland. Event Sponsorship To assist in the cost of hosting or running an event. Albert Trotter Legacy For Sailors’ Children’s Society. Marine & Sea Cadets (TS Royalist) Funds for the TS Royalist appeal by the Marine & Sea Cadets.
Endowed General Purposes To relieve sickness, poverty and distress of seafarers. Inglis Fund (incorporating the van de Kasteele scholarship fund) Merchant Navy South Africa Scholarship Fund Royal Naval War Libraries Endowment Fund South African Women’s Auxiliary Service To further the educational and future career needs of seafarers’ children. Arthur T. Jeffress Fund David Richards Trust Henry Herbert Wills Fund To assist officers and men of the Royal Navy, the Merchant Navy and the fishing fleet in need or distress.
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 logoed goods are sold and commercial events are operated. 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 gain of £24,620 (loss of £520 in 2012) arose in the year ended 31 March 2013 after charges of £250 (2012:£250) made by the Fund. There was a Gift Aid donation of £21,325 made in the year (nil, 2012). As at 31 December 2013, £3,927 was owed on current account from Seaservers Limited (£3,940 in 2012). 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 2013 is shown below; the Company is entitled to exemption from statutory audit under section 249 of the Companies Act 1985. Profit and Loss Account 2013 2012 (£’000) (£’000) Turnover 54 Cost of Sales and administration expenses 30 (1) Profit on activities before Gift Aid 24 (1) Gift Aid Payment 21 Retained Profit for the year
3
(1)
ummarised Balance Sheet at 31 March 2012 S Current assets
7
4
Net assets
7
4
3 6 S e a f a re r s U K
F inancial R e v iew
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. 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 2013 the Forces in Mind Trust, Cobseo and MCFG received Financial and Grant Administration asistance, which has beem recharged below cost and is shown within the Charitable Activities on page 29 (Note 5).
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 2013 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). 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. Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees’ Responsibilities set out on page 20 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.
Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the charity’s affairs as at 31 December 2013 and of its incoming resources and application of resources for the year then ended; • have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and • 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.
Matthew Lewis 23rd April 2014 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
A n n u a l Re p o r t 20 1 3 3 7
“ I want to help provide a safety net for future seafarers and their families.” As an island nation, we rely on seafarers who risk their lives, put food on our plates and carry vital supplies to and from our shores.
Leave a lasting legacy to our seafarers By leaving a gift to Seafarers UK in your Will, you will help to support seafarers and their families, who find themselves in need of essential support at difficult times. Last year Seafarers UK gave £2.5m in funding to more than 80 maritime charities and organisations. Seafarers UK
receives no government funding and is heavily dependent on public donations and legacies to maintain its grant-making programme. Please help us to continue supporting those who risk so much for our island nation by leaving Seafarers UK a gift in your Will.
Find out more… To find out more about our work please call 020 7932 0000 or email seafarers@seafarers-uk.org
www.seafarers-uk.org Seafarers UK (King George’s Fund for Sailors) is a Registered Charity, No. 226446 in England and Wales, incorporated under Royal Charter. Registered in Scotland, No. SC038191. Registered Office: 8 Hatherley Street, London SW1P 2QT. 3 8 S e a f a re r s U K
2013 Trust supporters Seafarers UK is very grateful to the following Trusts and Charitable Foundations for financial support during 2013: A & L Sussman Charitable Trust A E H Salvesen’s Charitable Trust A M Pilkington Charitable Trust Alphaone Trust Bedhampton Charitable Trust BP Foundation Carr-Ellison Family Charitable Trust Dixie Rose Findlay Charitable Trust Dudley and Geoffrey Cox Charitable Trust Elizabeth and Prince Zaiger Trust Erskine Cunningham Hill Trust G M Morrison Charitable Trust Garfield Weston Foundation Joseph Strong Frazer Trust Lloyd’s Charities Trust Lord Barnby’s Foundation Miss Jane Christie-Miller Trust Mrs F B Laurence Charitable Trust PF Charitable Trust R G Hills Charitable Trust Raymond & Blanche Lawson Charitable Trust Sir Jeremiah Colman Gift Trust Tay Charitable Trust The Albert Hunt Trust The Ann Jane Green Trust The Anson Charitable Trust The B C Corrigan Charitable Trust The C S Heber Percy Charitable Trust The Craignish Trust The Donald Randle Charitable Trust The Duffield (Tiverton) Charitable Trust The Elaine Barratt Charitable Trust The F Laing Family Trust
The Forces Help Society and Lord Roberts Workshops (Dundee) The George and Esme Pollitzer Charitable Settlement The Joan Mary Hurrell Charitable Trust The Lady Hind Trust The Laurence Misener Charitable Trust The Longview Trust The Macdonald-Buchanan Charitable Settlement The MacRobert Trust The Magpie Charitable Trust The Martin Charitable Trust The Martin Connell Charitable Trust The Mary Andrew Charitable Trust The Merchants House of Glasgow The Michael and Anna Wix Charitable Trust The Michael Uren Foundation The Mulberry Trust The Norman Family Charitable Trust The Oakley Charitable Trust The Patricia & Donald Shepherd Charitable Trust The Payne-Gallwey Charitable Trust The Pennycress Trust The Phillips Charitable Trust The Rest Harrow Trust The Robert Clutterbuck Charitable Trust The S H A Charitable Trust The Stafford Trust The Swire Charitable Trust The Thomas Lilley Memorial Trust The Verdon-Smith Family Charitable Settlement The Weinstock Fund The Worshipful Company of Blacksmiths The Worshipful Company of Girdlers W M Mann Foundation William Allen Young Charitable Trust
Seafarers UK is a charity that helps people in the maritime community, by providing vital funding to support seafarers in need and their families. We do this by giving money to organisations and projects that make a real difference to people’s lives across the Merchant Navy, Fishing Fleets, Royal Navy and Royal Marines.
Seafarers UK 8 Hatherley Street, London SW1P 2QT Telephone 020 7932 0000 Fax 020 7932 0095 Website www.seafarers-uk.org
@Seafarers_UK SeafarersUK
Seafarers UK (King George’s Fund for Sailors) is a Registered Charity, No. 226446 in England and Wales, incorporated under Royal Charter. Registered in Scotland, No. SC038191. Registered Office: 8 Hatherley Street, London SW1P 2QT. Designed by oysterdesign.co.uk