Trustees’ Report and Accounts 31 December 2012 Charity no. 1123613 Company no. 6220240
www.seasunday.org
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CONTENTS Trustees’ report and accounts Key facts and figures 2012
03
Message from our Chairman
05
Message from our Executive Director
06
Corporate directory
07
Our Mission global family
08
Income and expenditure summary
10
Our approach and aims
12
Charitable object
13
Objective one
14
Objective two
22
Objective three
27
Objective four
31
Structure of The Mission to Seafarers
32
Governance and management
34
The Mission global family
36
Report against objectives 2012
39
The year ahead: 2013
41
Glossary of terms
43
Financial review
44
Statement of Trustees’ responsibilities
47
Independent Auditor’s Report to the The Mission to Seafarers
48
Group statement of financial activities
50
Group balance sheet
51
Company balance sheet
52
Group cashflow statement
53
Notes to the financial statements
54
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OUR Mission global family: KEY facts and figures 2012 Founded in
1856, and entirely funded by voluntary
donations, today’s Mission to Seafarers offers emergency
assistance, practical support, and a friendly welcome to crews visiting 260 countries
We provide
365 121
ports in
71
days per year.
seafarers’ centres, and
174,000
copies of our international news digest for seafarers, entitled The Sea, were distributed all around the world.
Whether caring for victims of piracy or providing a lifeline to those stranded in foreign ports, we are there for the globe’s
1,370,000
merchant seafarers of all ranks, nationalities
and beliefs. Please help those facing shipwreck,
danger,
abandonment, and loneliness.
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MESSAGE from our Chairman Robert Woods CBE The life of the seafarer in the 21st century is a mix of solitude, hard physical labour and the close camaraderie that comes from crews spending so many long hours together on ships sailing sometimes wild and perilous seas. All crewmen and women know that sudden change is part of the very fabric of maritime life. Calm, blue oceans can rapidly become terrifying places of extreme danger within a few hours. 2012 has been recognised by the International Maritime Organization as one of the most deadly in the last 10 years, with over 1,000 seafarers killed in shipwreck, fire, collisions and groundings, despite continued and laudable improvements in working conditions and training. The rise of a new and deadly form of piracy in the last five years has led to a further 80 deaths and more than 3,400 crewmen and women being kidnapped and held to ransom. These risks put modern seafarers under stress and the dangers involved can place a terrible strain on them and their families. Now, more than ever, the maritime emergency relief and welfare work that The Mission to Seafarers carries out around the clock in over 260 ports in 71 countries is vital. Our long history of serving seafarers, which began with a group of dedicated and visionary volunteers in the Bristol Channel in the 1830s, means that the Mission is trusted and recognised as a seafarer’s first port of call in every eventuality. The Mission teams in our global family are now made up of employed, honorary and voluntary workers who are professionally trained to deal with matters relating to difficult working conditions at sea, trauma, health issues or personal relationship strain. The ‘Flying Angel’ Mission badge is the symbol of help, solace and support for seafarers. We always understand our privileged position as both a loyal friend to crews of every nationality and belief, and as a discrete partner to the quality players in the shipping industry. We work tirelessly to encourage dialogue and improve lives, working in confidential settings for the wellbeing of seafarers and their families at all times. Last year saw a major reorganisation of the Mission team which was in part the result of the tragic and untimely death of our Secretary General the Revd Tom Heffer, at the age of 43, in April 2012. Tom’s inspirational leadership, his great charm and determination to focus on improving the lives of seafarers are the key constituents of his enduring legacy that we carry with us in our work today. We have now recruited a worthy successor to Tom, and we look forward to working with our new leader The Revd Andrew Wright in 2013 and beyond. I would like to take this opportunity on behalf of Trustees to thank Martin Sandford for stepping up to the role of Acting Secretary General in 2012. As we move ahead, we remain true to our long heritage and look forward to providing the very best services for our beneficiaries and their families. We are pleased to present the results of our work in 2012 and I hereby recommend The Mission to Seafarers’ Trustees’ Annual Report and Accounts for your scrutiny.
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Message from our Executive Director Martin Sandford When I was asked, as Acting Secretary General, what the most important challenges were for The Mission to Seafarers in 2012, my reply was threefold: Firstly, delivering what seafarers need, where they need it most. This involves listening and learning; and sharing our knowledge with the right people, at the right time. Secondly, we need to focus on marketing our services with renewed creativity and energy, whilst at the same time protecting our established and highly trusted reputation. Thirdly, in very harsh economic times, we need to improve and develop our income streams significantly, by reaching out to our global Mission family through reinvigorated fundraising. To meet the requirements of these challenges head on, the Trustees agreed to invest a proportion of the Mission’s current reserves in developing new ports and growing the vital core service activity of the Mission, and over the next three to five years we need to get to the point where we are providing that on a balanced budget. We have very generous, loyal and valued supporters, but in order to achieve our vision we need to get our message out to a wider donor base. The outlook is very encouraging; despite the harsh economic environment and global banking crisis that affects families and businesses alike. Philanthropy continues to be important to our individual supporters, and the shipping industry recognises the essential contribution we are making to working for justice and welfare for seafarers and their families at the highest international level. We now have a first-class development department which is functioning well under the leadership of Nicky Wynne, concentrating on new areas where we should be able to obtain funds. As we look back on 2012 and recognise our solid progress, we also look forward to making new friends and forging deeper and more fruitful partnerships in 2013.
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Auditors
Bankers
Solicitors
Investment Advisors
Crowe Clark Whitehill LLP
HSBC Plc
Blake Lapthorn
UBS
20 Eastcheap
New Kings Court
1 Finsbury Avenue
St Bride’s House
London EC3M 1ED
Tollgate
London EC2M 2AN
10 Salisbury Square
Chandler’s Ford
London EC4Y 8EH
Eastleigh SO53 3LG
Corporate directory Registered Charity Number 1123613; Company No. 6220240 President of The Mission to Seafarers HRH The Princess Royal.
Her Majesty The Queen (Patron) Robert B Woods CBE (Chairman)
The Rt Revd Richard M C Frith
Captain John W Hughes MM FNI MRIN (Vice chairman)
Frances Lloyd
Malcolm Bell CA AAT (Vice chairman - until 11 July 2012)
David Moorhouse CBE
Vice Admiral Sir Tom Blackburn KCVO CB The Revd Canon Christopher Burke David Cockroft (From 25 January 2012)
Christopher Horrocks CBE Stephen Lyon Clive Mowatt (Until 10 January 2012) Neale Rodrigues MM Simon P Sherrard
Committees Governance and Nominations Committee Robert B Woods CBE (Chairman) Vice Admiral Sir Tom Blackburn KCVO CB The Rt Revd Richard M C Frith Martin Sandford (Executive Director) Remuneration Committee John W Hughes (Chairman) Stephen Lyon Su Morgan MHSM FCIPD Neale Rodrigues
Audit and Risk Committee Christopher Horrocks CBE (Chairman) The Revd Canon Christopher Burke Simon P Sherrard Timothy Quin Executive Team The Revd Canon Huw Mosford (Director of Chaplaincy) The Revd Canon Ken Peters (Director of Justice and Welfare)
Investment Committee
Martin Sandford (Executive Director)
Vice Admiral Sir Tom Blackburn KCVO CB (Chairman)
Nicky Wynne BA (Hons) MA (Director of Development)
David Moorhouse CBE
Brian Abbott FCCA (Chief Accountant)
Howell Harris-Hughes CBE FCSI Martin Sandford (Executive Director)
AAT
Association of Accounting Technicians
CA S
Chartered Accountant
FCCA
Chartered Certified Accountant
FCIPD
Fellow of The Chartered Institute of Personnel Development
FCSI
Fellow Canadian Securities Institute
FNI
Fellow Nautical Institute
MHSM
Master of Health Systems Management
MM
Master Mariner
MRIN
Member Royal Institute of Navigation
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Our Mission global family
UK services
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Centre, MtS ‘Flying Angel Club’ Centre, MtS with partners MtS Ship visiting and counselling
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INCOME and expenditure summary Where our funds were spent (£ ‘000)
1.5%
0.5%
Governance (87)
Investment Management (15)
2% Fundraising Trading (108)
72%
24%
Charitable Activities
Cost of Generating Funds (1288)
(3872)
Total £5,370 Total incoming resources £’000
3% Other (139)
8.5% Surplus on Sale of Assets (409)
37%
11%
Donations (1766)
Branches & Subsidiary Income (516)
15% Investment Income (700)
4% Event Income (196)
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21.5% Total £4,750
Legacies (1024)
Net Loss Before Property
12 20
11 20
10 20
09 20
20
08
Total income less expenditure £’000
0
and Investment Gains -300 -600
2008
-900
2009 1,282 2010 1,110
-1200
348
2012
1,015
2008
1,520
12
2011
20
11 20
10 20
09 20
20
08
-1500
Net Cash Outflow
590
-0
-500
-1,000
2009 1,506 -1,500
-2,000
2010 1,170 2011
512
2012
1,305
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OUR APPROACH and aims The Mission to Seafarers is a vibrant and inclusive Christian maritime welfare charity, dedicated to the wellbeing of the 1.3m crewmen and women around the world of all ranks, nationalities and beliefs who sail the merchant fleet. We work in partnership with our global family of Mission to Seafarers’ organisations and the international network of the Anglican Communion in over 260 ports across 71 countries The Mission’s teams of ship-visitors, chaplains and volunteers offer on-going, day-to-day confidential support around the clock, 365 days a year, for those who are in need of help for a range of justice and welfare-related issues such as health problems, minor injuries, employment concerns, or have communications problems in the globe’s most challenging ports. We provide emergency ‘first-responder’ services for seafarers in crisis, when sailors have suffered major trauma and injury through shipwreck, collision, piracy or dangerous seas; and when they face emergencies in ports due to abandonment, non-payment of wages, or the imprisonment of vessels, often due to circumstances outside of their control. Our international seafarers’ centres around the world offer a place of rest and recuperation on shore, as a ‘home away from home’, where seafarers can use internet facilities, buy supplies or find a quiet space for reading and reflection. There is a chapel, library and often a shop, as well as a friendly team dedicated to welcoming them, in comfortable surroundings.
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Charitable object The object of The Mission to Seafarers, as stated in the Articles of Association, and for which we are established for the public benefit, is:
“To promote the spiritual, moral and physical wellbeing of seafarers and their families worldwide” The Mission to Seafarers has developed a five-year strategic plan entitled The Mission to Seafarers’ Strategy 2010-2014 Delivering Maritime Ministry: Beyond the Next Horizon. This strategy articulates clearly the essential work that we have set out to do, and provides measures against which our progress can be checked by the board of Trustees. Core values Our core values explain how we work. They embody our ambition and commitment to focus on the way we care for seafarers and their families and those who work for our organisation across the world. • We behave with compassion • We act with integrity • We treat everyone with respect • We believe in justice for all • We value the resources we have been given The plan has four strategic objectives to guide us in our work to improve the working lives of seafarers significantly: Objective one: To offer practical help and spiritual support at the point of greatest need. Objective two: To provide advocacy services and campaign for changes that improves lives. Objective three: To increase our sources of funding to achieve a balanced budget. Objective four: To optimise our use of resources.
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Objective one “To offer practical help and spiritual support at the point of greatest need” The Mission to Seafarers has developed a high quality, responsive, global welfare support service for the wellbeing of seafarers and their families in need. In nearly every major port complex in the world, the Mission has people and services available that are well-known by seafarers. Because of our long history of reliable and confidential practical and spiritual support, we are trusted as the ‘first port of call’ for the swift resolution of problems for seafarers. At the heart of our service are the people who are dedicated to the provision of Christian charitable welfare services. Teams of local volunteers work together with our employed chaplains and lay staff to manage our 121 ‘Flying Angel’ Mission Centres, provide ship visiting on board, work with local agencies to assist with justice and welfare issues, hold counselling sessions or conduct Christian services if required. Our spiritual support and pastoral care makes no claims on seafarers; we do not seek to test faith or belief systems. We have an Anglican Christian ethos but fully understand and respect all religions, or equally, no religion. As a progressive missionary agency of the Church of England, we believe that every seafarer has the right to justice, inclusion and assistance. As part of our commitment to partnership working with other agencies, we will source the right help, at the right time, from other welfare teams where necessary. We are committed to assessing our impact on the lives of those who work at sea to ensure that we are working at the point of greatest need. The maritime industry is fast-paced and ever changing, as technology improves, laws and conventions change and new trade routes open up and others wind down. Our Global Review of Ports, which is undertaken every five years, is crucial to understanding those changing needs. In 2013 we will be revisiting our last Review and will look again critically at the ports our Mission family currently services. This will ensure that we give help and hope in places of greatest need.
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Emergency ‘first-responder’ relief services The oceans of the world remain dangerous environments, and in 2012 over 1,000 seafarers died as a result of shipwreck, collisions, fires on board and groundings. The Mission to Seafarers has representatives in over 260 of the world’s busiest ports who are ready to help in the event of maritime disaster or emergency at sea. In times of need, our Flying Angel Seafarers’ Centres rest and relaxation facilities can be used as emergency relief centres. Through our network of partnerships we are able to draft in medical and other support staff where necessary in a crisis. Our centres are located close to or in port terminals, so sea rescue services, coastguard and local port authorities may use our centres to help those seafarers who may be in shock and quickly need to get to a familiar place to help start their journey to recovery. Mission centres can treat minor injuries, assist those suffering from distress and support those who need counselling or a friendly listening ear. After a maritime emergency, seafarers need warm dry clothing, supplies of food and water, and need to get news to their loved one at home. The Mission is on hand to provide all these essential services.
Spotlight on The Mission to Seafarers Falmouth, UK: team cares for fire survivors
In July 2012, the MSC Flaminia suffered a sudden and devastating explosion at sea, causing the deaths of four crewmen and seriously injuring three others 1,000 miles off the coast of Cornwall. 15 survivors were rescued and taken to an emergency rescue centre, staffed by The Mission to Seafarers volunteer team, who provided around the clock vital emergency care in the wake of the tragedy. ‘’Falmouth should be very proud of the work of The Mission to Seafarers, staffed by local volunteers who work tirelessly on behalf of sailors from around the world who pass through our port. The reception of Flaminia crew members illustrates what a difference this work can make, the warm and generous welcome offered by the Mission helping survivors come to terms with an experience that was both tragic and terrifying.” Sarah Newton, MP for Truro & Falmouth
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Hospital visiting and medical care Whether seafarers have medical problems or are seeking help for minor injuries that need attention, The Mission to Seafarers is there to help. Our teams, many of whom have worked in the port full-time for many years, are able to arrange to transport seafarers in need to local doctors and can offer a wealth of local knowledge about medical provision in the area they are in. Where seafarers have been admitted to hospital, our staff will liaise with the shipmaster or shipping company to ensure that the best course of action is pursued; and will assist with repatriation of seafarers if they are too ill to fulfil their employment contracts.
Spotlight on The Mission global family Brisbane, Australia: flash floods hit Queensland
When flash floods hit Queensland, all ships in port were ordered out to sea. During the evacuation, one of the departing ships suffered a boiler ignition blast which severely burned three Chinese engineers. The men were airlifted to hospital for treatment, and spent weeks in induced comas undergoing emergency treatment, surgery and skin grafts. Throughout this time the Revd Daniel Vun made regular hospital visits, assisted medical staff with Mandarin translation and kept the seafarers’ worried families in China informed about their progress. Daniel said, “This is what the Mission is all about, assisting seafarers in need in a strange port under very difficult circumstances.”
Spotlight on The Mission to Seafarers Hong Kong, China: supporting a seafarer with cancer
The Mission’s Hong Kong chaplain, the Revd Stephen Miller spent a lot of time visiting a Chinese seafarer suffering from cancer. Named Zhao, and aged 23, she was diagnosed with cancer of the lower spine and admitted to hospital in July 2012. Stephen provided her with counselling and support, and kept her family updated with progress. Stephen arranged for her husband to travel out from India, providing him with a place to stay so that he could be with her for surgery and chemotherapy.
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Flying Angel and Seafarers’ Centres
121
seafarers’ centres
All over the world, Flying Angel seafarers’ centres are recognised by crews as the best places to rest and recover from long, lonely periods of sailing the oceans. Our centres are unique to each location, built with local talent and energy by our extensive network of chaplains, volunteers and staff who are dedicated to making the lives of seafarers better each year. We currently manage and contribute to 121 centres both in the UK and internationally, providing a ‘home away from home’ for seafarers who need help, support and a friendly welcome. Our centres are the best and most cost-effective places to access the internet and to purchase SIM cards for mobile phones. Our partnership with i-Vitta Phone Services is valued by seafarers as being reliable, affordable and easy to use. We are able to offer free donated warm clothing such at woolly hats and gloves knitted by local volunteers. There are refreshment services and we stock supplies such as food, drinks, batteries, toiletries and stationery. Some of our centres have a library and all have either a chapel or a prayer area. Table tennis may also be available. There are quiet rooms for rest and contemplation. A range of religious materials, in English and in translation, are on offer in our centres and our chaplains are always on hand for spiritual help and advice if needed.
Spotlight on The Mission to Seafarers’ branch: Aqaba, Jordan: Mission opens new centre
In January 2012, the Mission opened a much-needed internet café at the Aqaba Container Terminal, to enable visiting seafarers to maintain better contact with their friends and families. The facility hosts four PCs with internet capability, five pre-paid phones and a Wi-Fi facility, as well as a small shop. It is air-conditioned, and has a sound-isolating system to provide a peaceful, quiet environment for users.
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Transport Around the world, 21st century ports are highly secure environments away from historic port towns, to combat threats of global terrorism and local violence or crime. Advanced ship design and new technology has led to stopover times being eroded in ports. These two major changes mean that the world’s ports are becoming more lonely and inhospitable places, increasing the sense of isolation that seafarers feel and limiting their necessary rest and recovery opportunities ashore. The free transport services that The Mission to Seafarers is able to offer through networks of volunteers, includes car or minibus runs to local seafarers’ centres, airport transfers, and provision of local taxis and coach services in emergencies.
Communications services A wide range of communications services are provided by the Mission’s teams around the world, to help seafarers stay in touch with their loved ones. We make sure that we can supply low-cost international phone cards, which are in great demand. Our ship visitors take a range of supplies with them onto ships, particularly if turnaround times are short or the port’s size makes it difficult for crews to disembark to visit a local town. Our local centres also offer internet access and have telephone facilities. Support, counselling and post-trauma care There are a range of problems that seafarers face which are particularly difficult to tackle when at sea. This includes dealing with long periods away from family and friends, leading to feeling of extreme loneliness, isolation and even despair. Our teams are professionally trained in supporting seafarers by offering them private and protected time to talk through any worries or concerns they have. This service is fully confidential and allows seamen and women to share problems quickly.
Spotlight on The Mission global family Tuticorin, India: support for grieving father
Mission chaplain the Revd Simon Dharmaraj brought comfort to a grieving seafarer when he encountered him on a ship visit. He had lost his 17-year-old son in a car accident the previous year and was struggling to come to terms with the loss. Simon spent time in private with the seafarer, listening and offering quiet prayers as the man shared his deep distress. For three days while the ship was in port, the chaplain continued to visit, giving him literature in his native Greek, and buying two pairs of sandals that the seafarer had asked for. Simon said, “When he smiled, I could sense a difference in his face. He thanked me for the visits and kept smiling when he said ‘goodbye’ to me.”
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Spiritual support Our chaplains are routinely asked to provide spiritual care to seafarers. As an Anglican missionary agency, we are connected to the worldwide Anglican Communion with a presence in 165 countries. We distribute Christian materials where requested and hold services and prayers in centres and on ships to support those who would like to share with us in worship and thanksgiving to God. Where we are unable to provide appropriate services to Christians of other denominations or those crews of mixed or other beliefs, we have good knowledge of the localities we operate in and can call partner welfare services when required.
Spotlight on The Mission to Seafarers Remembering those who have been lost at sea: Titanic Memorial Service April 2012
The Mission to Seafarers was honoured to be chosen as the official charity partner for the Titanic Memorial Cruise. The first ever cruise to follow the Titanic’s route from Europe to America, the trip was designed to mark the centenary of the maritime disaster, with guests including historians, authors and relatives of those who lost their lives on the ship. Canon Huw Mosford, the Mission’s director of chaplaincy, led a special ceremony on board the ship. The service was conducted at 23.40hrs on 15 April 2012 on the exact site where the Titanic sank in the North Atlantic Ocean, to coincide with the moment when the ship struck an iceberg 100 years before.
Spotlight on The Mission to Seafarers Felixstowe UK: support for terrified crew In February 2012, the Revd Simon Davies in Felixstowe received an urgent call to visit a container vessel which was due to leave port in just three hours. On arrival, he was told by the captain that whilst at anchor in Piraeus, Greece, the ship’s second officer had fallen from the pilot’s ladder and died of his injuries. The crew had docked in Spain but had been unable to arrange for a priest to come on board due to language difficulties. By the time they reached Felixstowe, the 25 crew were fearful and in shock. The Mission supported them by arranging prayers as requested.
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Spotlight on a subsidiary of The Mission to Seafarers: The MV Flying Angel supply vessel
“Brilliant, just brilliant! Please come back soon!” A Danish shipmaster and visitor to the MV Flying Angel
The MV Flying Angel boat in Fujairah, United Arab Emirates, is the only vessel of its kind in the world. It brings vital supplies and communication facilities to up to 100 ships in one of the world’s largest anchorages. Some of these ships may be moored out at sea for weeks or months with no access to shore due to complex security and legal issues, and due to the port’s proximity to the Indian Ocean it’s not uncommon for visiting seafarers to have endured the terror of a pirate attack and be suffering post-traumatic stress. Others are depressed, lonely or have been bullied by fellow crew members. Since it was launched in 2007, the boat has served more than 164,250 seafarers. It operates seven days a week, welcoming around 75 crew members a day, and houses a library, an internet café, satellite phones, a duty free shop and counselling services through a resident chaplain. www.angelappeal.com
Spotlight on The Mission global family Port Giles, Australia: new Flying Angel centre opens
Thanks to an overwhelming number of people attending numerous working shifts The Flying Angel Centre at St Mary’s Edithburgh was opened on 22 April 2012 by the Ven Michael Hillier the Administrator of the Diocese. More than 120 people attended the blessing and opening, including Federal MP, Rowan Ramsay, Steven Griffiths, State MP and representatives of the Local Government and ministers from other churches. The support received from all areas in the Ministry District, the wider community and other church denominations was amazing. The Mission has become a focus for the Ministry District and this has resulted in bringing our local individual church communities together as one big cohesive family.
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The Sea Newspaper
174,000
copies of our international news digest for seafarers, entitled The Sea, distributed on board
The Mission to Seafarers produces the internationally respected news digest, aimed specifically at seafarers, entitled The Sea. It is written by a panel of award-winning maritime journalists and its key justice, welfare and faith sections are translated into three languages: Russian, Spanish and Mandarin (Chinese). Our ship visitors use The Sea as an indispensable tool to strike up conversations with seafarers on board, and they are distributed to the shipping industry and in our centres. The Sea contains essential news about the industry, tells seafarers what is happening in ports around the world and gives them essential health and safety advice.
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Objective two “To provide advocacy services and campaign for change that improves lives” Advocacy services Justice and welfare The Mission to Seafarers’ justice and welfare work is central to our ethos of providing advocacy services that improve lives around the world. Mission staff encounter a range of issues relating to employment contracts and encourage dialogue between crews, captains, shipowners and unions to resolve disputes quickly.
Help with non-payment of wages On occasion wages can be and are withheld from seamen and women which can cause distress and financial hardship. The Mission’s chaplains can offer discussion and negotiation with shipmasters and shipping companies in certain circumstances.
Sub-standard conditions on board All shipowners and managers must ensure that conditions aboard meet international standards. Sometimes however, it takes an experienced and concerned chaplain or ship visitor to highlight the poor, and sometimes appalling, conditions that are found on board ships around the world.
Spotlight on The Mission global family Sharjah, United Arab Emirates: chaplain negotiates wage payment
At Port Khalid in Sharjah, the Revd Dr Paul Burt encountered three Ethiopian seafarers who had been asked to clean out their vessel’s diesel tanks without a safety survey having been done. They refused to do the work on the grounds that it was too dangerous, and asked to sign off the contract. The ship’s company had agreed to pay for the men’s air tickets but not their full wages. The Mission negotiated on behalf of the crew members, with the harbour master and the owner, and they were signed off with full pay.
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Supporting bullied seafarers Long journeys at sea with multi-national crews who do not speak the same language, can lead to tension, and the Mission has dealt with cases of over-aggressive captains and crew, that have tipped over into unacceptable bullying and harassment claims. Our chaplains are on hand to support seafarers who have experienced harrowing victimisation, sometimes on the grounds of race, religion, sexuality or nationality.
Prison visiting Seafarers are at a much higher risk than most workers of being embroiled in complex legal cases, due to ships sailing extensively in international waters. The plethora of different local laws that are applicable in ports and many different standards of legal protection offered to seafarers are compounded by the difficulties of managing their employment contracts across different continents. The Mission to Seafarers offers vital support and assistance to crews who have found themselves in trouble, even imprisoned, sometimes due to circumstances outside of their control. Even where seafarers have been arrested or held for personal reasons, we will always respond positively with impartial help and advice. We can quickly signpost the best local services and get calls made to parties that need to be engaged in discussions. Seafarers know that Mission teams will help them under any circumstances and we are regularly contacted by both seafarers and their families to undertake vital prison visiting if required.
Spotlight on The Mission global family Hobart, Australia: Mission defends bullied seafarer
Visiting a cruise ship in Hobart, chaplain Bruce Mitchell met a quiet young steward who was being bullied by his supervisors. Ronald had gone to sea to support his parents and younger brother, but had not received a pay slip for three months and was unsure of whether
Spotlight on The Mission to Seafarers
he had been paid overtime or if his money had been sent home. After
Mistley nr Harwich, UK: chaplain investigates ship arrest
making a written complaint about his treatment, he was threatened with dismissal and having to pay his own fare home. Bruce referred the case to the International Transport Workers’ Federation (ITF) in Melbourne, where the ship was next due to dock, and they visited the vessel to investigate. As a result, Ronald received his entitlements, had his fare home paid by
During a routine ship visit in Mistley, chaplain Geoff Moore found two seafarers living in filthy conditions. He immediately took the
the company and the ITF helped him to obtain a job on board another ship.
men ashore and arranged accommodation for them, as well as providing clean clothing, toiletries and a phone charger so that they could call the ship’s agent. The agent was angry they had left the ship and threatened to withhold their wages if they did not return that night, despite the ship’s conditions. Geoff arranged for three police officers to meet the ship’s agent the following morning and inspect the state of the vessel. They discovered that its registration was out of date, and reported this to the Maritime and Coastguard Agency, which swiftly issued an arrest warrant. The ship was kept in port until repairs had been undertaken.
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Campaigning for change The Maritime Labour Convention The Maritime Labour Convention 2006 (MLC), sometimes referred to as the ‘seafarers’ bill of rights’, will come into effect on 20 August 2013, marking a significant step forward in the employment and welfare rights of the world’s seafarers. The Mission to Seafarers was instrumental in lending support to a call for the Convention to be ratified internationally, and actively engaged with the debate through the International Labour Organization (ILO), and the International Christian Maritime Association (ICMA). The MLC establishes minimum requirements for almost all aspects of working conditions for seafarers. It sets out conditions for employment, hours of work and rest, accommodation, recreational facilities, food and catering, health protection, medical care, welfare and social security protection.
Isolation, loneliness and despair The Mission to Seafarers has campaigned in 2012 to highlight the plight of crews facing increasing isolation across the world. This sense of loneliness has been heightened due to long contracts, short turnaround times in ports and continued problems with gaining access to on board broadband and satellite links to help families stay connected. In 2013 we plan to continue this essential work and to raise our concerns about the isolation, loneliness and despair that seafarers can face and we will campaign at the highest levels to ensure crews get the shore leave to which they are legally entitled, so they can relax and recover every time they reach port.
Spotlight on The Mission to Seafarers International Headquarters: representing the views of seafarers at MLC meetings Canon Ken Peters, who represented seafarers’ missions at the IMO and ILO, took forward the views of seafarers and chaplains at the MLC meetings which were held in Geneva, Switzerland in 2012. He is also qualified in training trainers of the MLC and regularly works with flag states to make sure they are aware of their obligations when it comes to implementing the legislation. “The entry into force of the Maritime Labour Convention is truly an historic moment. The basic principles of employment which so many of us on land take for granted have, at long last, been extended to seafarers.”
Spotlight on The Mission global family Port Giles, Australia: welcoming beacon for isolated crews Seafarers docking at Australia’s Port Giles on the remote Yorke Peninsula are now being greeted by warm hospitality from chaplain Geoff Harrison and his wife June. The port has no nearby town or local facilities, so until now visiting seafarers have found themselves incredibly isolated. “If it were not for us the crew members would be confined to their ship or the wharf area,” says Geoff. “Some ships are here for a week or more after being at sea and at anchor
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often for some weeks.”
The fight against piracy In 2012, pirates killed at least six seafarers. They attacked 278 vessels, boarded 125 vessels and hijacked 27, taking 448 hostages in the process. They used weapons to intimidate and attack seafarers, with tragic consequences. The rise in international piracy has been one of the most notable and dangerous reinventions of long-standing criminal activity that the world has seen. The history of piracy is well-documented, but in the last ten years the pirates of Somalia, and more recently Nigeria, have come to dominate world headlines for acts of brutality leading to death, injury and long periods of detention for innocent victims, from all over the world. The Mission to Seafarers has been the leader in applying our welfare expertise to the aftermath of piracy and other extreme forms of maritime violence, and in pressing for change. The Mission is the only Christian maritime organisation working to assist seafarers transiting the International Maritime Employers’ Council (International Bargaining Forum) designated High Risk Area, and assisting crews trying to cope with the burden of the threat of piracy. We continue to influence and lead at the highest level with the IMO for the plight of seafarers to be properly considered and the UK House of Lords has praised our work for the direct contribution we have made on behalf of seafarers as victims of piracy across the world.
Spotlight on The Mission to Seafarers International Headquarters: Mission trains chaplains in post-trauma counselling
In order to offer the best possible support for seafarers who have been affected by piracy, The Mission to Seafarers has equipped our chaplains across the globe with specific posttrauma counselling skills. Over the past four years, Mission chaplains have been steadily completing the International Critical Incident Stress Foundation’s course, led by Dr Marion Gibson. Her work on a humanitarian response to piracy is grounded in her experiences with veterans of the Vietnam war and survivors of the Northern Ireland troubles. “Crews are deeply concerned for their safety when sailing through pirate-infested waters. One container vessel’s captain related that he was only 20 miles away from a pirate attack in which two crew members were shot and killed while another was shot but survived. Having a concerned wife and family increased the stress to which he was subjected by their many concerned calls. The number of times the subject is raised is indicative of the fear faced daily around the coast of Africa.” Seattle chaplain This latest development in the Mission’s service provision is just part of our work to deliver a dynamic and responsive ministry that develops to meet seafarers’ changing needs.
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Strengthening public affairs In 2012 the Mission extended its programme of welfare and justice monitoring and intervention by increasing communication with and support to chaplains, ship visitors and volunteers to manage more cases and to start direct research into issues that seafarers face every day. As the only port-based welfare agency with counselling facilities in the High Risk Area, The Mission to Seafarers was invited by the Foreign and Commonwealth Office to speak at a satellite event at the London Conference on Somalia, hosted by the UK Government. The Mission spoke of its work with piracy victims and encouraged the shipping industry to provide seafarer-focussed response programmes which take into account a ‘freed’ seafarer’s emotional, physical and psychological state. The Public Affairs team continued to inform politicians and policy makers by meeting regularly with Foreign Office ministers (and their Shadow counterparts) on issues of piracy and first response, as well as colleagues from the Department for Transport and the Maritime and Coastguard Agency on issues of welfare and port access for chaplains. The work of the Mission was recognised in the House of Lords on two separate occasions. A substantial intervention was made by the Bishop of St Edmundsbury and Ipswich (the Rt Revd Nigel Stock) on the work of the Mission in Tuticorin, South India and the government was challenged to support Commonwealth nations as they attempt to assist their citizens in post trauma care and release. On a separate occasion, the wider work of the Mission was praised in the House of Lords and support given for the Mission’s annual Sea Sunday campaign. The Mission to Seafarers is a partner of the Maritime Piracy: Humanitarian Response Programme, which is the industry’s initiative to provide a tailored response for victims of piracy. During 2012, the Mission provided insight and help in the creation of guidelines for shipowners who employ seafarers heading into the High Risk Area pre-departure training and sources of information should anything go wrong. The Mission to Seafarers leads the ICMA delegation at the International Maritime Organization and in that capacity attended various UN meetings throughout the year to monitor debate. These included the Marine Environment Protection Committee, the Legal Committee, Facilitation Committee and the Maritime Safety Committee.
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Objective three “To increase our sources of funding to achieve a balanced budget” The following fundraising campaigns were a great success in 2012 and will be rolled out to our supporters in 2013:
Flying Angel Bike Ride In May 2012 The Mission to Seafarers arranged a cycling challenge with our corporate partners in the New Forest in Hampshire. The day attracted a good response with 50 participants taking on the course and many more supporters turning out on a sunny day to support the Mission and raise much needed funds for seafarers’ welfare. 2012’s Flying Angel Ride raised over £33,000.
Sea Sunday Our annual high profile campaign Sea Sunday, was led by Pam Rhodes, journalist, author and presenter of BBC’s Songs of Praise. The campaign highlights the isolation of seafarers, and the long separation from their families that they experience year on year, and was more successful than ever before. Local churches, honorary chaplains and lay readers across the country held fundraising challenges, events and collections for the Mission, helping us to raise £46,000.
Woolly Hat Day Our new fundraising campaign, entitled ‘Woolly Hat Day’, was launched in October 2012 to raise awareness of the plight of seafarers across the UK and with the public, supporters and the media. It proved to be a great success and laid the foundations for more in 2013.
Annual Service & Festival of Nine Lessons and Carols Our two main annual church services both focused on highlighting the plight of seafarers facing isolation and extreme loneliness throughout the year. Our headline speaker in October Mr Terry Waite, ex-hostage and negotiator for hostage release, spoke clearly about the isolation he felt whilst being held captive in Beirut and the devastating effect this has on your physical and mental wellbeing. He praised seafarers for their fortitude, endurance and capacity to survive in the most extreme circumstances. At our Christmas Service, attended by our President HRH The Princess Royal, we again raised awareness of seafarers facing long contracts at sea, and those who would not be able to be at home on Christmas Day. Our volunteers around the world held Christmas ‘wrapathons’, providing donated gifts and clothing in our port centres, to make seafarers feel welcome and included over an important holiday time when their families are far away.
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Appeals Our most successful appeal in 2012 was the ‘George and Florin’ Lent story which raised £45,500 (including gift aid) from supporters.
Grants We would like to thank the many charitable trusts and foundations that supported the work of The Mission to Seafarers in 2012, including: The Bishop of Oxford’s Outreach Fund
Mercers’ Charitable Foundation
The David Brooke Charity
Merchants House of Glasgow – Inverclyde Trust
The Worshipful Company of Carmen Benevolent
Merchant Navy Welfare Board
Trust
G M Morrison Charitable Trust
The Worshipful Company of Curriers
The Miss E A Pemberton-Barnes Will Trust
Catatania Trust
The PJ K Charitable Trust
The Dixie Rose Findlay Charitable Trust
The Princess Anne’s Charities Trust
The Douglas Investment Trust
Salamander Charitable Trust
Dr & Mrs J D Olav Kerr Charitable Trust
Seafarers UK
The Fishmongers’ Company
The Worshipful Company of Shipwrights
The Fulmer Charitable Trust
The Sunrise (Sidmouth) Trust
Joseph Strong Frazer Trust
The Swire Charitable Trust
G C Gibson Charitable Trust
The John Swire 1989 Charitable Trust
The Joan Mary Woodham Hurrell Charitable Trust
The Tallow Chandlers’ Benevolent Fund
The Worshipful Company of Innholders
The Tanner Trust
The ITF Seafarers’ Trust
The T K Foundation
Linden Charitable Trust
The Theodore Salvesen Memorial Trust
Maritime Charities Funding Group
Godfrey Winn Will Trust
Medway Mission to Seamen Trust
The Worshipful Company of World Traders
Photos: From left to right, The Revd Canon Ken Peters, The Revd Canon Huw Mosford, and overleaf, Nicky Wynne MA with a stranded seafarer in UAE.
Spotlight on The Mission to Seafarers Falmouth, UK: George and Florin
The Mission to Seafarers was instrumental in providing essential support to two seafarers in need. Our chaplain the Revd Mark Mesley told Flying Angel News: “As a port chaplain, it is my responsibility to be there for seafarers and to help them when we can. Our team is one part of a wide response network and we have a duty to ensure that when there is a problem, the right people are notified so that it can be addressed.” Florin told us: “I’m so thankful that Father Mark was there to help us. It was the Mission that made everything happen. They talked to the port authorities, the Maritime and Coastguard Agency, the union and the lawyer. We would still be on that terrible ship if the Flying Angel hadn’t stepped in to help us – we trust them.”
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Corporate partnerships We would like to thank all those in the shipping industry who support our vital work: A Bilbrough & Co Ltd
Mediterranean Average Adjusting
All Leisure Group Plc
Nautilus International
Bellfield Publications
Navigate PR Ltd
Bibby Line Group Ltd
Nectar Group Ltd
BP Shipping Ltd
Niarchos (London) Ltd
British Association of Cargo Surveyors
Occam Insight
Buxted Construction Ltd
Orient Worldwide (Shipping) Ltd
Carisbrooke Shipping Ltd
Peninsular & Oriental Steam Navigation Co
Carmet Tug Co Ltd
Royal Institution Of Naval Architects
Carnival UK
Saga Shipping Company Ltd
Celebrity Cruises
Sealion Shipping Ltd
CSL Europe Ltd
Seatrade Business Review
Davies Johnson and Co
Shipowners Protection Ltd
DP World
Society of Maritime Industries
DP World Southampton
Sovcomflot (UK) Ltd
Foresight Ltd
Spinnaker Consulting Ltd
Gray Page Ltd
Technip UK Ltd
International Marine Transportation Ltd
The Baltic Exchange
J & J Denholm Ltd
The Maersk Company Ltd
John Swire & Sons Ltd
The Propeller Club of The United States
Langley Shipping Ltd
Thomas Miller P&I Ltd
Lloyd’s Register
UK Maritime Pilots’ Association
Marsoft
V.Group
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The Revd Tom Heffer Memorial Fund “Tom leaves behind a great legacy which will inspire many to continue that ministry of love and care in his memory.” The Most Revd and Rt Hon Dr Rowan Williams, former Archbishop of Canterbury
“The Mission to Seafarers is one of worldwide shipping’s most effective and important charities. What Mr Heffer did to promote The Mission to Seafarers cannot be underestimated, nor can his dedication, great achievements and humour.” Lloyd’s List
“Tom was a warm and caring person. Seafarers have lost a true and great friend.” Roger Harris, International Committee on Seafarers’ Welfare The death of the Revd Tom Heffer was as sudden as it was deeply tragic and sad. Tom’s family and the Mission’s Trustees responded bravely and approved the creation of a dedicated fund in his memory.
In 2012 the fund raised a total of £25,615.00 to enable us to
continue to take his vision forward. The money will be used to continue our work in ports around the world and to fund new initiatives where necessary and as outlined in our forthcoming Global Ports Review 2013. We will not forget Tom’s brilliant and visionary work to help seafarers everywhere.
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Objective four “To optimise the use of resources” The Board of Trustees has made a significant investment in key departments to reinvigorate the profile of the organisation and to raise vital funds. After the tragic death of our Secretary General Tom Heffer in April 2012, the recruitment of his successor has now been completed. Andrew Wright joined The Mission to Seafarers as our 16th Secretary General on 25 February 2013. Four key appointments to the Development Team have been made in 2012 including a new head of marketing and communications, a public affairs manager, a major donors’ officer and press officer. Nicky Wynne, our director of development was appointed to provide strategic leadership of the fundraising, marketing and communications functions and took up her leadership role in 2012.
Global Port Review 2013 Understanding the development of the maritime economy is key to our principle to ‘always be where seafarers need us most’. As trade continues to expand in the east in countries like China, Vietnam and Korea, and new trade routes develop, it is an important part of maintaining our position as the world’s most successful provider of charitable port-welfare services by ensuring that seafarers are always assured of support where ever they travel around the world. New markets open up new opportunities for employment for seafarers, but also signal new challenges when they are asked to consider how to work across different cultures. These are challenges that the Mission and its global team are keen to take on. To underpin our strategic review, which will take place in 2013, we shall also carry out a Global Port Review to ensure that we are in the right places, at the right time, with the right mix of services. The last review was undertaken in 2008 and informed the development of current strategic vision for the organisation.
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structure of The Mission to Seafarers The Mission to Seafarers is a company limited by guarantee (company no. 6220240), which is also a registered charity (no. 1123613). The Trustees of the Mission are also its directors.
The following companies are wholly controlled by The Mission to Seafarers and are classified subsidiaries: • The Mission to Seafarers DMCCO, registered in Dubai • The Dunkirk War Memorial Trust Ltd • Flying Angel Marketing Enterprises Ltd • The Flying Angel Belfast Ltd • The Mission to Seafarers Scotland Ltd • The Mission to Seafarers Trust Corporation Ltd
Across the United Kingdom and elsewhere, various ecumenical partnerships have been entered into with the maritime ministries of other denominations such as the Apostleship of the Sea (Roman Catholic) and The Sailors’ Society.
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These partnerships often exist in larger ports where there is more ground to cover and together we can offer enhanced provision of welfare services. These include Centres for Seafarers (Southampton and Tilbury), Felixstowe Seafarers’ Centre, The Milford Haven International Seafarers’ Centre, The Humber Seafarers’ Service (Hull and Humber Ports), Seaham Seafarers’ Centre, the Port of Bristol Seafarers’ Centre (Portbury) and The Mission to Seafarers in Vlissingen. The Flying Angel logo of The Mission to Seafarers is the internationally-recognised symbol of maritime welfare support, although not all seafarers’ centres displaying the logo come under the direct responsibility of the charity. Some operations within the United Kingdom, plus Aqaba (Jordan) and Mombasa (Kenya), are known as branches and come under our direct control. These are wholly funded by us and report their income and expenditure directly to us. These branches are listed below and their results are included in the financial statements set out on pages 50 to 67 of this report.
Branches of The Mission to Seafarers Aqaba (Jordan)
Belfast
Cardiff
Falmouth
Fowey
Hull
Milford Haven
Newport
Port Talbot
Mombasa
Southampton
Tees North (Hartlepool)
Tees South (Middlesbrough)
Tyne & Wear (South Shields)
Welsh Council
Spotlight on The Mission to Seafarers London, UK: volunteer conference 2012
In 2012 The Mission to Seafarers started to reinvigorate our engagement with our various voluntary fundraising committees and branches both in the UK and around the world. Volunteers are at the heart of the Mission’s philosophy on developing local networks of support for seafarers and their families in 71 countries around the world. We will be building on the success of the volunteer conference and hosting another event in 2013 to engage and support the local teams on the ground.
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governance and management The work of the organisation is overseen and directed by the Board of Trustees which is the ultimate governing body of the charity. Trustees may serve on the Board for two periods of four years, apart from those aged 70 years or more who are re-elected annually. The Chairman and Vice-Chairmen are elected for a four-year term. The Board requires a quorum of five Trustees and normally meets approximately four times a year. It is the governing council of the organisation which authorises the Terms of Reference for four committees which also meet throughout the year. These are: • Governance and nominations
• Audit and risk
• Investment
• Remuneration
Each of the above committees is made up of Trustees as well as members of the executive staff. Where appropriate, we co-opt independent and professional expertise from external sources, for the benefit of a committee’s work.
Board of Trustees’ statutory responsibilities The Board of Trustees is committed to observing high standards of overall governance by reference to the key principles of good governance set out in the Code for the Voluntary and Community Sector, first published in June 2005 and updated in 2011. The Board maintains and reviews a skills audit of Trustees to ensure their skillset reflects the requirements of The Mission to Seafarers. A recruitment process is in place where potential Trustees are interviewed by unconnected representatives of the Governance and Nominations Committee before a recommendation is made. Upon appointment, all Trustees are given an induction to familiarise themselves not only with the work of the organisation, but also their responsibilities as a Trustee. Some may undergo more specific training in the form of short courses.
Risk management The Board of Trustees maintains a risk register, which was reviewed and updated in 2012, in which the major risks to which The Mission to Seafarers could be exposed are recorded, together with the systems and procedures that are in place to manage them and future actions needed to reduce further the charity’s exposure.
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A “traffic light” system is used to categorise risks and presently there is one remaining red risk. This is the risk that the Mission ceases to be financially viable. The three amber risks are a) an action or event triggers a significant Section 75 financial pension liability, b) unidentified liabilities occur at one of the ecumenical centres in which the Mission is a partner, and c) there is a serious breach of Health and Safety Legislation in one of our branches. The register was reviewed in detail during the year and approved by the Board of Trustees. It will continue to be reviewed as needed, but as a minimum will be looked at annually. Risk is included in the remit of the Audit and Risk Committee.
Senior management team and staff The day-to-day management of the organisation is delegated to the Secretary General of The Mission to Seafarers. Supported by the Senior Management Team, the Secretary General directs the organisation within the objectives, policies and procedures agreed by the Board. The Senior Management Team is supported by lay staff located in London and a regional fundraiser who is home-based in the UK. The London International Headquarters consists of a development department (incorporating fundraising, marketing, public affairs and communications), a finance and administration department, and a ministry department which is dedicated to international service provision and leading justice and welfare initiatives. It also incorporates the office of the secretary general. In over 260 ports around the world, chaplains, volunteers and supporters deliver our services. Port chaplains are employed by The Mission to Seafarers or funded either through direct grants from International Headquarters or through local funds. International Headquarters provides funding for 46 chaplains who report to the Director of Chaplaincy, including 22 who are directly employed. In addition the Mission is grateful for the volunteer support of 178 Honorary Chaplains in the United Kingdom and a further 75 internationally. Most Mission chaplains are ordained priests in the Anglican Communion or lay readers. They operate from port-based seafarers’ centres or through mobile ministry in the form of ship visits. Chaplains are supported in their work by a network of centre staff whose primary role is to manage the administration of a centre. They are assisted by volunteers and together are able to boost the output of a local station by providing additional ship visiting and transport facilities, as well as offering the hand of friendship, support and practical assistance to visiting seafarers.
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The Mission global family In some parts of the world, there are operations which are not under the direct control of International Headquarters, but are considered part of the Mission ‘global family’. These operations may be supported by International Headquarters through grants or other means of support. These grants are a charge on the income of the organisation to which this report refers and are reflected in the Group Statement of Financial Activities as set out in Note 7 to these accounts. In some countries, most notably in the USA, South America, Australia and Oceania, The Mission to Seafarers is controlled by boards financially independent of International Headquarters but who are linked under the same name and logo. In some places, we have signed ‘memorandum of understanding’ agreements with our Mission global family, to ensure that the whole organisation is aligned to our core object as an international maritime welfare charity. Through the international network of Mission charities we celebrate together our shared history of Christian fellowship and outreach to seafarers. This spirit of common endeavour amongst Anglican maritime ministry practitioners extends to some operations in Europe, Africa and Asia. The International Headquarters of The Mission to Seafarers acts as a resource centre for all global operations, linking our work together in Christian fellowship and providing a spiritual figurehead in the person of the Secretary General. In practical terms, International Headquarters assists in the appointment of chaplains and shares information, ministry tools and training as well as advice on fundraising, communications and public affairs. Our services are strengthened through liaison and advisory visits by the Secretary General and directors of chaplaincy and justice and welfare.
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public benefit Charity Trustees have a duty to report in the Trustees’ Annual Report on their charity’s public benefit. The Trustees confirm that: 1. They are clear about what benefits are generated by the activities of the charity. This report sets out in some detail the activities carried out to further each of The Mission to Seafarers’ strategic aims, the services provided around the world and the number of beneficiaries reached. 2. The benefits must be related to the objects of the charity. Each of The Mission to Seafarers’ four objectives is related to, and intended to further, the Mission’s charitable object, which is, “To promote the spiritual, moral and physical wellbeing of seafarers and their families worldwide.” 3. The people who receive support are entitled to do so according to criteria set out in the charity’s object. Wherever possible, the views and opinions of seafarers and their families, and the staff that support them around the clock in confidential settings, are sought in the design and implementation of services and campaigns to promote change. This approach helps to ensure that our work is targeted to seafarers in need. It allows us to assess their needs and adapt our work accordingly so that we can continue to make beneficial changes to the lives of seafarers and their families and evaluate our impact. Trustees are therefore confident that The Mission to Seafarers meets the public benefit requirements, and they confirm that they have taken into account the guidance contained in the Charity Commission’s general information on public benefit where applicable.
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Photo: The Rt Revd Richard Frith, The Revd Canon Chris Burke, Robert B Woods CBE, The Revd Andrew Wright, David Moorhouse CBE, Frances Lloyd.
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Report against objectives 2012 1. To offer practical help and spiritual support at the point of greatest need • We have successfully remodelled our ministries in South Shields, Port Talbot, Portbury and our ports on the Humber (Hull, Immingham and Goole). • We have developed new models of operation, working in close partnerships with other organisations linked to seafarers’ welfare, so that these ports now offer an ecumenical shipvisiting programme. • In Maputo, Mozambique, we have restored a chaplaincy that had been suspended due to many years of civil war. • New chaplains have been appointed in 2012 in the following ports: » Antwerp
» Dubai
» Felixstowe
» Mombasa
» Rotterdam
» The Welsh ports
» Tilbury / Medway
» Yokohama
2. To provide advocacy services and campaign for changes which improve seafarers’ lives • One of the biggest issues facing the industry at present is that of piracy off the coast of Somalia and in the wider Indian Ocean. The Mission to Seafarers has campaigned vigorously for better levels of protection for seafarers transiting the High Risk Area and has spoken out through the media and at the London Conference on Somalia, organised by the British Government. • Following interviews with seafarers visiting our centre in Mombasa, the Mission became the first maritime ministry to call for seafarers working in the High Risk Area to be protected by trained, authorised armed guards. • The Mission joined the pan-industry endorsement of Best Management Practices (version 4), which gives detailed guidance on anti-piracy measures, actively promoting its use through our seafarers’ centres. • We have rolled out an international training programme for chaplains to act as first responders to seafarers who have been held hostage or attacked by pirates. • As well as piracy, The Mission to Seafarers has discussed a range of other issues affecting crews. We have held meetings with various governments regarding legislation including the International Ship and Port Facility Security Code and the MLC and given presentations to Government of Bahamas officials on the importance of allowing seafarers to access welfare facilities. We also submitted papers for discussion at the IMO on post-piracy care and the importance of a properly implemented ship safety management code. • As a recognised provider of welfare services, the international community regularly seeks advice and guidance from The Mission to Seafarers to support seafarers working on their ships. In 2012 we continued to contribute to the training of Liberian Flag State Inspectors. • The Mission launched a new website at www.missiontoseafarers.org to give supporters and seafarers a better understanding of who we are, how they can support us and where help can be accessed.
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• A new-look Flying Angel News has given our regular donors more information about how we spend their money. The publication has a print run of nearly 30,000 and is sent to every person who donates to The Mission to Seafarers. • 174,000 copies of The Sea were distributed through our network of chaplains and seafarers’ centres. • 955 Sea Sunday packs were provided to supporters, honorary church secretaries and speakers, with hundreds more downloaded from the Mission’s dedicated Sea Sunday website, www.seasunday.org.
3. To increase our sources of funding to achieve a balanced budget • The Board of Trustees has made a significant investment in key departments to reinvigorate the profile of the organisation and to raise vital funds. • Four posts have been created to lead our corporate partnership initiative, community fundraising activity, statutory funding and trust work and the direct mail and legacy programme. • At the end of December 2011, Nicky Wynne, our director of development was appointed to provide strategic leadership of the fundraising, marketing and communications functions.
4. To optimise the use of resources • We reviewed our current areas of work to ensure they were fit for purpose with re-modelling or closure as possible outcomes. • South Wales Ports (Swansea, Cardiff, Newport and Port Talbot): Our longstanding chaplain retired at the end of September 2012 and a new chaplain has been recruited. The chaplaincy presence was relocated from Swansea to Cardiff to take account of changes in shipping patterns. • Rotterdam: At this centre-based ministry we identified the need to secure new volunteers and funding; the new chaplain has started to address these issues • Dunkirk: The centre-based ministry at this port has been reviewed with reference to cost and effectiveness. Closer co-operation with the Port Welfare Committee has been sought and possible solutions proposed to operating deficits. • New ministries up and running to date:
o Jawaharlal Nehru Port Trust (JNPT): three years’ of funding has been obtained via International Transport Workers’ Federation.
• The ways in which we handle mail responses to appeals have been examined with the work taken in house yielding cost savings. • We have changed our IT support service contractors, yielding improvements in service and reductions in cost. • The cost to benefit ratio of cold mail appeals was examined and found wanting; future initiatives will be better targeted. • We have taken all of the creative work associated with appeals back in house, improving the consistency and quality of material whilst also reducing costs.
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the year ahead: 2013 1. To offer practical help and spiritual support at the point of greatest need • We will continue to monitor our work so that it remains relevant to the needs of seafarers. • We are building on our work with chaplains who service cruise ships and will be developing The Church on the High Seas brand and launching a new microsite outlining how crews and passengers can get access to welfare support services whilst on holiday. • We will continue developing our relationships in Dubai and Hong Kong and initial scoping work has begun to support our work in Fujairah, UAE.
2. To provide advocacy services and campaign for changes which improve seafarers’ lives • Our Trade Journey campaign, planned for 2013, will help raise awareness of the crucial role that seafarers play in transporting the food we eat and the goods we use every day with the general public around the world. • It will continue to explore the journeys seafarers make to bring our daily essentials, and will call on manufacturers and heads of industry to recognise and celebrate the fundamental part they play in the global economy. • We will continue developing our Mission global family by improving internal communications and building stronger relationship with our network of Anglican Bishops. • Continuing to support our chaplains and volunteers in the field with education and training courses, which include post-traumatic stress, ship welfare visiting, management of aggression and dealing with drug and alcohol addiction, so that they are equipped to deal with seafarers suffering from these problems. • Raising awareness of the Maritime Labour Convention 2006 (MLC) which is especially important as we approach the ‘go-live’ date this year on the 20 August 2013. We will ensure port chaplains are properly informed about its provisions and are prepared to receive and manage MLC complaints cases from seafarers if required. • We will continue to work with flag states and port state control authorities to best facilitate access to shore based welfare facilities. • We will continue to engage with shipowners to assist in the preparation for the entering into force of the MLC.
3. To increase our sources of funding to achieve a balanced budget • As a worldwide Mission we plan to expand our international fundraising in partnership with local committees, branches and seafarers’ centres. • Through the Mission’s international project, we aim to strengthen our links with local communities, government and industry in the countries where seafarers benefit most from our work, and so increase our income from these areas. • We will be developing our impact measurement reporting structures in 2013, to ensure we have robust performance management systems in place.
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4. To optimise the use of resources • The opening of the new Thames Gateway port will open up opportunities for The Mission to Seafarers which are being explored. • In 2013, we will be looking at our operations in Rotterdam and Dunkirk as well as our presence across south Wales to ensure we are serving seafarers in the most effective way. • We will be working on local international campaigns including fundraising for the Flying Angel supply boat which is the world’s only mobile ministry vessel, providing services in the Fujairah anchorage in the United Arab Emirates. • Our Belfast branch will be working closely with our team in Aqaba, Jordan to supply a new bus for essential transport services. • In Suape, Brazil we will be reviewing service requirements and looking at ways to support outreach work for seafarers and their families. • New ministries to be developed in 2013:
o Maputo, Mozambique: (via ICMA Southern Africa) is to be reviewed, as ITF funding
o Ho Chi Minh, Vietnam: we are currently taking legal advice and are examining the
shortly comes to an end. merits of having a local sponsor.
o The Port of Tanjung Pelepas, Johor, Malaysia: is still on hold pending resolution of issues surrounding employment of local staff.
Spotlight on The Mission to Seafarers International Headquarters: The Revd Andrew Wright Secretary General 2013
“It is a great honour to be taking on the role of Secretary General to this worldwide Mission. In doing so I am conscious of my distinguished predecessors, and especially of Tom. I am determined to take his work forward and to continue to focus on the provision of professional welfare services for seafarers in areas of greatest need. “I hope to be faithful to the past, ensuring that we remain rooted in what has driven and sustained us all these years. At the same time, I am committed to ensuring that we do not stand still, that we do not get cosy and that we take wing, energetically and creatively, ensuring that our service, our ministry, remains dynamic, focused and relevant. “Ours is a remarkable and privileged work amongst a fantastic group of people, so often forgotten and sadly now almost lost from the public imagination. Within that lie all the issues we know so well: isolation; danger; exhaustion; family worry; fears of many kinds; and, sometimes, real nastiness. “Bringing light into darkness will continue to involve us with justice issues of all kinds. This must happen both at the macro level, in our work with governments and institutions, and at the micro level in our work with individual ships and seafarers in ports. I look forward enormously to working with seafarers, supporters, staff, and volunteers all around the world.”
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glossary of terms IBF
International Bargaining Forum
ICMA
International Christian Maritime Organisation
ILO
International Labour Organization
IMEC
International Maritime Employers’ Council
IMO
International Maritime Organization
ITF
International Transport Workers’ Federation
MCA
Maritime and Coastguard Agency
MLC
Maritime Labour Convention 2006
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Financial review The Group Statement of Financial Activities on page 50 shows net outgoing resources before recognised gains on investment assets of £620,000 (2011: £185,000). If gains on disposal of property no longer required for the purposes of The Mission to Seafarers (the Mission) are excluded the net outgoing resources are £1,015,000 (2011: £348,000). Total incoming resources were £4,750,000 (2011: £5,463,000). The trustees recognise that legacies of £1,024,000 (22%) (2011: £1,968,000 (36%)),though reduced by comparison with recent years, continue to comprise a significant proportion of incoming resources excluding gains on property and investment assets. Total resources expended were £5,370,000 (2011: £5,648,000). An analysis of this expenditure is given in note 6 to the financial statements. The proportion of total expenditure that the Mission considers to be of a charitable nature was 72% (2011: 73%). It is important to stress that the sustainability of the Mission’s operations, both in the UK and as a resource provider to other parts of the worldwide mission, depends on its ability to generate cash, and below is a summary of the Mission’s results for the last five years. History Statement of Financial Resources
2012
2011
Restated 2009
2008
£’000 £’000 £’000 £’000
2010
£’000
Incoming Resources excluding Property and Investment Gains
4,355
5,300
4,547
4,339
4,497
Resources Expended
5,370
5,648
5,657
5,621
5,087
Net Loss before Property and Investment Gains
(1,015)
(348)
(1,110)
(1,282)
(590)
Balance Sheet Tangible Assets
7,157
6,840
6,714
6,669
6,465
Investments
19,972
18,157
19,268
17,766
16,464
Net Current Assets
1,762
3,852
4,129
4,784
1,886
Net Assets 28,891 28,849 30,111
29,219
24,815
Endowment
-
-
672
636
780
Restricted
702
774
631
711
616
Unrestricted
28,189
28,075
28,808
27,872
23,419
30,111
29,219
24,815
Total Reserves 28,891 28,849
Cash Flow Net cash outflow from operating activities
44 | Trustees’ Report
(1,305)
(512)
(1,170)
(1,506)
(1,520)
Reserves The trustees have established a general reserves policy and regularly review the Mission’s ability to continue to maximise both its activities in accordance with its objects and the value of net income. The level of the unrestricted general reserves has provided some protection to the Mission and allows time to adjust to changing financial circumstances. This has limited the risk to service provision from operating deficits, such as the Mission has experienced in recent years, or an unexpected need for unbudgeted expenditure. The Trustees reviewed the Mission’s reserves policy in the autumn of 2010 taking account of current plans to invest in service provision and of the Mission’s long term liabilities. The Review of the Year 2011 placed the reserves policy in the context of a consistent integrated financial resource management strategy. This has facilitated development of objectives against which progress can be measured over five years. The Mission seeks to maintain general reserves to reflect the long-term nature of its work. At the balance sheet date the unrestricted funds of the Mission and its subsidiaries stood at £28,189,000 (2011: £28,075,000). In the opinion of the trustees, this level of fund continues to be required to meet future working and capital requirements having taken into account the following factors:
• The Mission seeks to operate in a proactive manner, to make commitments in terms of manpower and premises for the long term and to provide a reserve of funds sufficient to support operations at locations worldwide where the Mission operates, either directly or through other relationships set out in the section entitled ‘Structure of The Mission to Seafarers’ on page 32 of this report. There are continuing indications that some of the Mission’s operations overseas, which endeavour to be self-funding, are struggling to maintain essential services. The Mission is committed to the principle of maintaining its worldwide support of seafarers and to retaining a sufficient level of funds to give stability to its work, including the provision of emergency financing where necessary for these activities.
• Long term committed expenditure at ports directly under UK control, if not funded by reliable and sufficient income streams, is a high risk strategy, which can be unsustainable without adequate reserves. The trustees are very aware that ministry to seafarers is a long-term undertaking and, for that to be possible, a sound financial base is a prerequisite.
• In 2012 legacy income was £1,024,000 (2011: £1,968,000). Whilst the Mission has benefited from legacies in the past and hopes to do so in the future, legacy income cannot be relied upon as a continuing and certain source of incoming resources. The trustees have, therefore, made allowance for the uncertainties that arise from legacy income.
• The Mission anticipates continuing net cash deficits arising from insufficient cash being raised. These deficits will be funded from the proceeds of investment and fixed asset transactions. There is a risk that future cash deficits will require continued funding from investment reserves. The trustees have made an allowance for the element of risk arising from any future adverse movement in market values of investments held.
• Changes in law may impose costs, such as in the area of pensions, where obligations may arise to ensure that current and retired employees are not significantly disadvantaged.
Trustees’ Report
| 45
Restricted funds are tied to particular purposes. Restricted funds of £702,000 (2011: £774,000) represent unspent monies received from donors subject to the conditions specified by them. They are not therefore available to the Mission for other work. In view of the level of reserves carried the Trustees consider that it is appropriate for the financial statements to be prepared on a going concern basis.
Investment policy The Trustees have adopted a policy for the portfolio of investments that is designed to optimise returns over the longer term and thus provide a regular flow of funds to support the Mission’s operating activities both in the UK and overseas. In the implementation of this policy, the Trustees follow the Charity Commission guidance for the investment of charitable funds. They also have regard to, but are not bound by, the Church of England Ethical Investment Advisory Group guidelines.
Investment portfolio The Mission maintains an internationally diversified portfolio of investments including equities, fixed interest stocks and investment funds giving access to other asset classes. The portfolio is externally managed by investment managers who are regulated by the Financial Services Authority.
Asset allocation and investment performance The Investment Committee regularly monitors the risk profiles and asset allocations of the portfolio by means of both reports from, and review meetings with, the investment managers. The performance of UBS, the Mission’s primary investment managers, is related to a composite benchmark index designed to reflect the overall performance of the several asset classes within the portfolio. The Mission’s agreement with UBS has been that performance will be assessed on a three year rolling basis. In the three year period up to 31 December 2012 there is an overall level of underperformance of 1.97% against the agreed benchmark. This underperformance arises largely from the ongoing underperformance of Triton Property Fund which continues to be wound down. Equity performance has been marginally behind over three years where the higher dividend value stocks have performed relative to the UK equity market. Approved and authorised for issue by the Board on 23 April 2013 and signed on its behalf by:
Chairman of the Board
46 | Trustees’ Report
Chairman of the Audit and Risk Committee
Statement of Trustees’ responsibilities
Company law requires the Mission’s Trustees to prepare financial statements for each financial year which give a true and fair view of the Mission’s financial activities during the year and its financial position at the end of the year. In preparing financial statements giving a true and fair view, the Board should follow best practice and: • Select suitable accounting policies and apply them consistently; • Make judgements and estimates that are reasonable and prudent; • State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and • Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Mission will continue in operation. Members of the Board, as Trustees, are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Mission and which enable them to ascertain the financial position of the Mission and to ensure that the financial statements comply with applicable law. They are also responsible for safeguarding the assets of the Mission and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that: • The Mission is operating efficiently and effectively; • Its assets are safeguarded against unauthorised use or disposition; • Proper records are maintained and financial information used within the Mission or for publication is reliable; and • The Mission complies with relevant laws and regulations.
Disclosure of information to the auditor Insofar as each of the Trustees of the charity at the date of approval of this report is aware there is no relevant audit information (information needed by the charity’s auditor in connection with preparing the audit report) which has not been drawn to the auditor’s attention. Each Trustee has taken all of the steps that they should have taken as a trustee in order to make themself aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.
Trustees’ Report
| 47
Independent Auditor’s Report to the Members of The Mission to Seafarers We have audited the financial statements of The Mission to Seafarers for the year ended 31 December 2012 which comprise the Group Statement of Financial Activities, the Group and Company Balance Sheet, the Group Cash Flow Statement and the related notes numbered 1 to 19. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and the company’s members 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, the Trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material mis-statement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees’ Report and the messages from the Chairman and Executive Director to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material mis-statements or inconsistencies we consider the implications for our report.
Opinion on financial statements In our opinion the financial statements: • Give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 December 2012 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; • Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • Have been prepared in accordance with the requirements of the Companies Act 2006.
48 | Independent Auditor’s Report
Opinion on other matters prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • The parent charitable company has not kept adequate accounting records, or returns adequate for our audit have not been received from branches not visited by us; or • The parent charitable company financial statements are not in agreement with the accounting records and returns; or • Certain disclosures of trustees’ remuneration specified by law are not made; or • We have not received all the information and explanations we require for our audit.
Tim Baines Senior Statutory Auditor For and on behalf of Crowe Clark Whitehill LLP Statutory Auditor Crowe Clark Whitehill LLP St Bride’s House 10 Salisbury Square London EC4Y 8EH
Independent Auditor’s Report
| 49
GROUP STATEMENT OF FINANCIAL ACTIVITIES Incorporating a Profit and Loss Account Notes
Unrestricted
Restricted
Total
Total
Funds
Funds
2012
2011
£’000
£’000
£’000
£’000
INCOMING RESOURCES Incoming resources from generated funds 3
2,650
140
2,790
3,875
Activities for generating funds
196
-
196
106
Investment income
4
700
-
700
620
Incoming resources from charitable activities
516
-
516
427
Voluntary income
5
548
-
548
435
TOTAL INCOMING RESOURCES
4,610
140
4,750
5,463
Other incoming resources
EXPENDITURE Cost of generating Funds Fundraising & Trading
1,288 108
-
1,288
1,274
108
127
Investment management costs
15
-
15
38
Charitable activities
3,731
141
3,872
4,096
Governance costs
87
-
87
113
TOTAL RESOURCES EXPENDED
6
5,229
141
5,370
5,648
BEFORE TRANSFERS
(619)
(1)
(620)
(185)
71
(71)
-
-
NET OUTGOING RESOURCES Transfers between funds
15
NET OUTGOING RESOURCES BEFORE RECOGNISED GAINS AND LOSSES
(548)
(72)
(620)
(185)
REALISED GAINS/(LOSSES) ON INVESTMENTS
370
-
370
(306)
NET EXPENDITURE
(178)
(72)
(250)
(491)
12a
292
-
292
(771)
NET MOVEMENT IN FUNDS
UNREALISED GAINS/(LOSSES) ON INVESTMENTS
114
(72)
42
(1,262)
RECONCILIATION OF FUNDS Total funds brought forward
28,075
774
28,849
30,111
TOTAL FUNDS CARRIED FORWARD
28,189
702
28,891
28,849
All the above results are derived from continuing activities. All gains and losses in the year are included above; accordingly a statement of total recognised gains and losses is not required. Notes 1 to 19 form part of these financial statements.
50 | Accounts 2012
GROUP BALANCE SHEET Notes Unrestricted Restricted Total
Total
Funds
Funds
2012
2011
£’000
£’000
£’000
£’000
FIXED ASSETS Tangible assets
11
6,539
618
7,157
6,840
Investments
12
19,972
-
19,972
18,157
26,511
618
27,129
24,997
CURRENT ASSETS 38
-
38
35
561
-
561
924
Short term deposits
518
84
602
2,911
Cash at bank and in hand
1,364
-
1,364
947
Stocks-goods for resale Debtors
13
2,481
84
2,565
4,817
CURRENT LIABILITIES
14
803
-
803
965
NET CURRENT ASSETS
1,678
84
1,762
3,852
NET ASSETS
28,189
702
28,891
28,849
FUNDS Unrestricted Restricted
15
28,189
-
28,189
28,075
-
702
702
774
28,189
702
28,891
28,849
Company Registration Number 6220240 Approved and authorised for issue by the Board on 23 April 2013 Signed on its behalf by:
Chairman of the Board
Chairman of the Audit and Risk Committee
Notes 1 to 19 form part of these financial statements.
Accounts 2012
| 51
company balance sheet Notes Unrestricted Restricted Total
Total
Funds
Funds
2012
2011
£’000
£’000
£’000
£’000
FIXED ASSETS Tangible assets
11
6,042
618
6,660
6,275
Investments
12
19,816
-
19,816
18,007
25,858
618
26,476
24,282
CURRENT ASSETS 30
-
30
28
13
497
-
497
897
Short term deposits
448
84
532
2,911
Cash at bank and in hand
695
-
695
399
Stocks-goods for resale Debtors
1,670
84
1,754
4,235
CURRENT LIABILITIES
14
738
-
738
887
NET CURRENT ASSETS
932
84
1,016
3,348
NET ASSETS
26,790
702
27,492
27,630
FUNDS General Restricted
15
26,790
-
26,790
26,856
-
702
702
774
26,790
702
Company Registration Number 6220240 Approved and authorised for issue by the Board on 23 April 2013 Signed on its behalf by:
Chairman of the Board
Chairman of the Audit and Risk Committee
Notes 1 to 19 form part of these financial statements.
52 | Accounts 2012
27,492
27,630
GROUP cashflow statement RECONCILIATION OF NET OUTGOING RESOURCES 2012
2011
FOR THE YEAR TO NET CASH OUTFLOW £’000 £’000 FROM OPERATING ACTIVITIES Net outgoing resources
(620)
(185)
Gain on disposal of tangible fixed assets
(409)
(163)
Investment income
(700)
(620)
Depreciation
247
256
Increase in stocks
(3)
(2)
Decrease/(Increase)/ in debtors
363
(163)
(Decrease)/Increase in creditors
(162)
365
Exchange gain on consolidation
(21)
-
Net Cash Outflow from Operating Activities (1,305)
(512)
CASHFLOW STATEMENT Net Cash Outflow from Operating Activities (1,305)
(512)
Returns on Investments and Servicing of Finance 700
Investment Income
620
Capital Expenditure and Financial Investment Payments to acquire tangible fixed assets
(707)
(448)
Purchases of investments
(12,770)
(2,717)
Receipts from sales of tangible fixed assets
573
229
Receipts from sale of investments
12,182
3,402
(722)
466
(1,327)
574
Net Cash (Outflow)/Inflow before Management of Liquid Resources Management of Liquid Resources Decrease in cash on short term deposits
2,309
369
Increase in cash with investment managers
(565)
(651)
1,744
(282)
Increase in Cash 417 292
1 January 2012
Cash inflow
31 December 2012
ANALYSIS OF CHANGES IN NET CASH Cash at bank and in hand
947
417
1,364
Accounts 2012
| 53
Notes to the Financial Statements 1.
Accounting Policies
a) Basis of accounting
The Financial Statements have been prepared under the historical cost convention (modified to present investments at market value) and in accordance with applicable UK accounting standards, including the Statement of Recommended Practice - Accounting and Reporting by Charities (the 2005 SORP). No separate Statement of Financial Activities has been presented for the Company alone, as permitted by paragraph 397 of the 2005 SORP. The Company’s Balance Sheet on page 52 includes the assets and liabilities of the branches detailed on page 33. The Group Statement of Financial Activities on page 50 and the Group Balance Sheet on page 51 combine respectively the results and the assets and liabilities of the Company (including its branches) with those of its subsidiary companies detailed in note 2 after eliminating intra-group transactions. The Company’s net movement in funds for the year were (£138,000). (2011: (£1,414,000).
b) I ncoming resources and resources expended
The value of all incoming resources is recorded in the Statement of Financial Activities as soon as the company is legally entitled to the income and the amount can be quantified with reasonable accuracy. Expenditure is accounted for on an accruals basis. Costs in respect of operating leases are charged on a straight line basis over the lease term.
c) Legacies
Property and investments received by way of legacies are included initially at the market value ruling on the date of transfer. Legacies are recognised in the Statement of Financial Activities when there is adequate certainty and reliability of receipt and their value can be accurately measured. This is based on all legacies notified by the year end for which income was received by the end of February. Only material legacies received after this date, and up to the date of signing of the Annual Report and Accounts, are recognised in the Statement of Financial Activities.
d) Capital grants
Capital grants are credited to the Statement of Financial Activities as restricted funds incoming resources. A transfer is made to unrestricted funds over the estimated useful lives of the assets to which they relate, matching depreciation charged to the unrestricted funds.
e) Allocation of costs
Charitable expenditure comprises expenditure directly relating to the objects of the Mission. It includes employment and associated costs of chaplains including recruitment and training together with advice to the Mission and linked
54 | Accounts 2012
organisations worldwide. Services to seafarers such as the costs of educational material and information for seafarers together with the newspaper for seafarers The Sea are also included as direct charitable expenditure. Support costs (including secretarial and administrative support from the Mission’s International Headquarters) not directly attributable to the headings on the Statement of Financial Activities are allocated to Charitable Activities, Cost of Generating Funds or Fundraising and Trading by head count at International Headquarters. Governance costs comprise amounts related to constitutional and statutory requirements and include staff costs, audit fees, professional fees and Trustees’ expenses.
f) Pension costs
The Mission makes contributions to defined benefit and defined contribution schemes. The defined benefit schemes are multi-employer pension schemes and it is not possible to separately identify the assets and liabilities of the schemes attributable to the Mission. In accordance with FRS 17 therefore, the Mission has accounted for contributions to the defined benefit schemes as if they were defined contribution schemes. Full details of the pension schemes are given in note 9.
g) Tangible fixed assets
Tangible fixed assets are stated in the Balance Sheet at cost less depreciation. Assets with a cost of less than £1,000 are written off in the year of purchase. Depreciation is provided on a straight line basis over the anticipated useful life of fixed assets as follows:
Motor vehicles - four to six years
Fixtures and equipment - between five and ten years
Short leasehold buildings - over the term of the lease
Computer equipment - three years
Vessel – Flying Angel - fifteen years
Where the Trustees consider that the expected useful life of freehold land and buildings is in excess of 50 years and the carrying value in the Financial Statements is not more than the estimated recoverable amount, no depreciation is charged and, in accordance with FRS11, the Trustees have carried out and will continue to carry out annual reviews of impairment.
h) Investments
Investments are stated at mid-market value. Realised and unrealised gains and losses are shown in the Statement of Financial Activities.
i) Stocks
Stocks are valued at the lower of cost and net realisable value.
Accounts 2012
| 55
j) Foreign currency translation
With the exception of investments, transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Foreign investment transactions are recorded at an average rate. Monetary assets are shown in the balance sheet at the rate ruling on the balance sheet date.
k) Funds
Restricted Funds represent capital grants received (note d above) together with donations for specific purposes. Transfers to unrestricted funds represent the release for the year of these grants or donations.
2.
Subsidiary and connected undertakings
The Mission to Seafarers DMCCO (A Dubai Maritime City Company)
The shares are held in the Nominee names of The Mission to Seafarers Trust Corporation and FAME (see below). This company provides services to seafarers and their families in Dubai and operates a vessel to enable chaplains and volunteers to visit seafarers on board their ships.
2012
2011
£’000
£’000
Voluntary Income
556
615
Investment Income
2
-
Total Incoming Resources 558
615
385
505
Net gain retained in Subsidiary 173
110
Charitable Expenditure
56 | Accounts 2012
The Dunkirk War Memorial Trust Ltd
The Dunkirk War Memorial Trust Limited (DWMT) was set up as a charity to provide premises and facilities for the use of seafarers within the port of Dunkirk, France. DWMT is effectively controlled by virtue of the directors being Trustees or senior employees of The Mission to Seafarers.
2012
2011
£’000
£’000
Voluntary Income
41
45
Activities for Generating Funds
15
16
Investment Income
Incoming Resources from Charitable Activities
Other Incoming Resources
4
4
108
102
2
104
170
271
Total Incoming Resources
2
1
194
210
Investment management costs
Charitable Activities
Governance Costs
7
7
Other Resources Expended
2
32
Total Resources Expended
205
250
Net (Outgoing)/Incoming Resources
(35)
21
Net Unrealised Gains on investments
4
1
Foreign Exchange Losses
(4)
(1)
Net (Loss)/Gain retained in Subsidiary
Flying Angel Marketing Enterprises Ltd (FAME)
(35)
21
The Mission owns through nominees the whole of the issued share capital of FAME. Two of the trustees of the Mission sit on the board of FAME but receive no remuneration for doing so. FAME is a retailer and distributor of Christmas cards and novelties. Any taxable profit from trading is gifted to the Mission.
2012
2011
£’000
£’000
16
15
-
(2)
16
13 (8)
Turnover
Cost of sales
Gross profit
Administration
(7)
Donation to the Mission
(9)
(5)
(16)
(13)
-
-
Net gain retained in Subsidiary
Accounts 2012
| 57
The Flying Angel Belfast Ltd
The Flying Angel Belfast Ltd was set up to operate catering services in the Mission’s Belfast premises. All the shares in this company are owned by The Mission to Seafarers. Any taxable profit is gifted to the Mission.
2012
2011
£’000
£’000
33
40
(18)
(17)
15
23
(15)
(20)
-
(3)
-
-
Turnover
Cost of sales
Gross profit
Administration
Donated to the Mission
Net gain retained in Subsidiary
The Mission to Seafarers Scotland Ltd
The Mission to Seafarers Scotland Ltd was set up as a company limited by guarantee and registered charity in Scotland to raise funds and deliver services to seafarers and their families in Scotland. The Mission to Seafarers is the sole member.
2012
2011
£’000
£’000
135
120
12
4
147
124
5
5
Voluntary Income
Activities for Generating Funds
Total Incoming Resources
Cost of Generating Funds
Fundraising and Trading
Charitable Activities
Total Resources Expended
Net gain retained in Subsidiary
The Mission to Seafarers Trust Corporation Ltd (MTSTC)
9
4
114
62
Governance Costs
7
2
Other
3
2
138
75
9
49
MTSTC holds real property and investments as custodian Trustee on behalf of the Mission. It has no transactions on its own account.
58 | Accounts 2012
Voluntary Income 2012
2011
£’000
3.
£’000
General donations
1,766
1,907
Legacies
1,024
1,968
2,790
3,875
4.
Investment Income
2012
2011
£’000
£’000
Listed investments
666
591
Bank deposit interest
13
15
Rental income
21
14
700
620
Income from listed and unlisted investments is shown gross, including tax reclaimable. Rental Income represents monies received from properties held as fixed assets that are not fully occupied for the Mission’s own activities.
Other Income 2012
2011
£’000
5.
£’000
395
163
Surplus on disposal of properties
Surplus on disposal of other assets
Vote 4 – (see note 9)
Dunkirk War Memorial Trust (Capital Gains Tax Refund)
Other
14
-
113
111
-
104
26
57
548
435
Ministry Communications Regions Fundraising Support Total 2012
Total 2011
6.
Analysis of Expenditure
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Voluntary Income
-
-
14
640
634
1,288
1,274
Fundraising & Trading
-
-
63
45
-
108
127
-
13
-
2
Cost of Generating
Investment Management
Charitable Activities
Governance
- 400 -
252 2,449 -
34
- 771 -
15
38
3,872
4,096
87
113
5,370
5,648
53
400
252 2,573
685 1,460
Staff Costs (note 8)
Grants (note 7)
Other
361
111
908
585
520
2,485
2,732
-
-
329
-
-
329
283
39
141
1,336
100
940
2,556
2,633
Total
400
252 2,573
685 1,460
5,370
5,648
Accounts 2012
| 59
Support costs not directly attributable to the headings on the Statement of Financial Activities are reallocated on the basis of headcount at the Mission’s International Headquarters. Audit fees included in governance costs for the group amount to £28,000 (2011: £33,000) and other fees paid to the auditors for non-audit services total £12,000 (2011: £9,000).
Ministry Grants 2012
2011
£’000
7.
£’000
Australia
20
13
Bahrain
13
12
Belem
17
16
Colombo
11
11
Great Yarmouth
11
11
Mangalore
21
16
Oceania
2
2
Odessa
31
30
Portbury
9
9
Pusan
56
51
Rouen
4
4
Seaham
2
2
Singapore
19
19
Southern Africa
-
10
Suape
28
25
Tuticorin
19
19
Vlissingen
66
33
329
283
8.
Grants are made to support ministry in areas around the world. These grants are subject to annual review.
Staff Costs 2012
2011
£’000
Staff No.
£’000
Wages and salaries
1,760
1,533
Social security costs
175
181
Other pension costs
195
589
Other Staff Costs
Total staff costs
355 2,485
69
Staff No.
429 2,732
66
Other Staff Costs include recruitment, compensation for loss of office, training, welfare of overseas employees, temporary staff and travel-related costs. Pension costs in 2011 included £400,000 in respect of the actuarial deficit as at 31 December 2010 (See Note 9).
Employees with remuneration (excluding benefits in kind) in excess of £60,000:
£60,000 to £70,000 2 (2011: 1)
£70,000 to £80,000 1 (2011: 0)
Employers’ pension contributions for these employees are 7%.
60 | Accounts 2012
9. Pensions
Defined Benefit Schemes
The Mission participates in two of the Church of England Defined Benefits Schemes administered by the Church of England Pensions Board. These are the Church of England Funded Pensions Scheme (CEFPS) for the clergy and the Church of England Defined Benefits Scheme (CEDBS) for lay employees of Church of England organisations. The assets of both schemes are held separately from those of the Mission. The Church of England Pensions Board has stated that it is unable to identify the Mission’s share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the schemes. The Mission has treated these schemes as falling within the multi-employer disclosure provisions of Financial Reporting Standard 17 which require the contributions to the schemes to be accounted for as for defined contributions schemes and for the following additional disclosures to be made. The last actuarial valuation of the CEFPS was carried out as at 31 December 2009 and revealed a shortfall of assets of £262 million. The Pensions Board has decided that the period over which this deficiency should be recovered will be 12 years, i.e. by 31 December 2022. The target date for clearance remains unchanged from that set following the 31 December 2006 valuation. Accordingly the Trustees of the scheme have confirmed that along with some agreed changes in benefits the employer’s contribution rate to the scheme from 1 January 2011 would be 38.2% of pensionable stipends. The previous rate was 39.7%. The Mission Chaplains in this scheme total 17 (2010: 11) out of a total membership of approximately 9,000 active members. All of the Mission’s employed chaplains are currently funded by the Archbishops Council under Vote 4 provisions. Employers contributions of £113,000 (2011: £111,000) paid by the Mission to the CEFPS are included in staff costs (note 8). This amount was reimbursed by the Archbishops Council and is included in other income (note 5). For funding purposes the CEDBS is divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post retirement investment returns. A valuation of the CEDBS is carried out once every three years, the most recent being carried out as at 31 December 2010. In this valuation, the Life Risk Section was shown to be in deficit by £6.7m and some £5.5m was notionally transferred from the employers’ sub pools to the Life Risk Pool. Of this, £183,000 was deducted from the Mission’s subpool. This increased the employers’ contributions that would otherwise have been payable. Other available information relating to the valuation as at 31 December 2010 is given below.
£’000
Market Value of DBS
Market Value of the Mission’s sub-pool
Market Value of Life Risk Pool
220,700 651 97,400
Total Scheme Members Mission Members
Deferred pensioners
1,513
Active Members
1,134
11 5
During the year the Mission made contributions of £33,000 (2011 £32,000).
Accounts 2012
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Defined Contribution Schemes
A scheme for staff was set up in 2008 with Scottish Life. Contributions to this scheme are funded 3% by the employee and 7% by the Mission. There are 17 (2011: 18) members of staff in this scheme at 31 December 2012. Contributions to this scheme in 2012 were £46,000 (2011: £36,000). The Mission contributes 7% to an additional money purchase scheme for one active member (2011: 1) which is administered by a pension provider selected by that member. Mission contributions for 2012 totalled £ 2,000 (2011: £2,000). Other
10.
Amounts paid in respect of unfunded pensions during the year were £1,000 (2011: £1,000).
Transactions With Trustees
No Trustee received remuneration from the Mission during the current year (2011: £8,000). During the year expenses were reimbursed to 8 Trustees (2011: 9) for travel to attend meetings of and on behalf of the Mission. The total amount reimbursed to Trustees in 2012 was £4,000 (2011: £5,000).
11.
Tangible Fixed Assets
Group
Property
£’000
Motor
Vessel Fixtures &
Total
Vehicles Equipment £’000
£’000
£’000
£’000
Cost
1 January 2012
6,673
626
752
1,035
Additions
510
180
-
17
707
Disposals
(150)
(125)
-
(9)
(284)
Exchange Difference
-
2
33
2
37
9,086
31 December 2012
7,033
683
785
1,045
9,546
Depreciation 2,246
1 January 2012
683
446
262
855
Provided during the year
39
103
51
54
247
Disposals
(4)
(112)
(4)
(120)
Exchange Difference
1
16
2
13
31 December 2012
718
439
326
906
2,389
Net book value
31 December 2012
6,315
244
459
139
7,157
31 December 2011
62 | Accounts 2012
5,990
180
490
180
6,840
The Company
Property
Motor Fixtures &
Vehicles Equipment
£’000
£’000
£’000
Total £’000
Cost 6,673
553
912
8,138
1 January 2012
Additions
510
180
16
706
Disposals
(150)
(125)
(9)
(284)
608
919
8,560
31 December 2012
7,033
Depreciation
1 January 2012
683
403
777
1,863
Provided during the year
39
88
30
157
Disposals
(4)
(112)
(4)
(120)
379
803
1,900
229
116
6,660
150
135
6,275
31 December 2012
718
Net book value
31 December 2012
6,315
31 December 2011
Property
The properties held are split between categories as follows:
5,990
2012
2011
£’000
£’000
Freehold
5,089
4,740
Leasehold
1,226
1,250
TOTAL 6,315
5,990
Freehold and leasehold property represents the book value of staff houses, pensioners’ houses, and club and office premises.
Accounts 2012
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12.
Investments a) Listed investments
2012 Group
2011
Company
Group
Company
£’000 £’000
£’000
£’000
18,990
18,853
Market value 1 January
17,228 17,091
Additions
Disposals
12,770 12,616
2,717
2,701
(11,812) (11,674)
(3,708)
(3,691)
(771)
(772)
18,478 18,327
17,228
17,091
1,494 1,489
929
916
18,157
18,007
15,759
15,643
Unrealised gain/(loss) for the year
292 294
Market value 31 December
Listed Investments
Cash held by Investment Managers
19,972 19,816
Historical cost at 31 December
16,868 16,715
The Mission’s main investment advisors charge a management fee offset by the commission charge on each transaction up to a maximum amount. The fees for 2012 were £45,000 (2011 £51,000). The commission charges of £75,000 (2011: £37,000) are included in the additions and deducted from the proceeds of investment transactions. The fees are offset against the commission. Fees totalling £15,000 (2011 £23,000) were paid to the other investment advisors.
Significant investment holdings (over 5%) based on market value at 31 December 2012 were:
ISHARES S&P 500SHS (GBP)
14%
Multi Strategy Alternative Fund
5%
64 | Accounts 2012
b) Investments in subsidiaries
The Company controls the following principal active subsidiaries, the results of which have been consolidated.
Net assets
Name of company
Country of % Holding/ incorporation
control
Net incoming
as at
Nature of
resources
31 December
Business
2012
2012
£’000
£’000
173
1,097
The Mission to Seafarers
DMCCO
UAE
practical welfare for
all seafarers
UK
100
The Dunkirk War Memorial
Trust Ltd
practical welfare for
all seafarers
UK
100
243
Flying Angel Marketing
1
Sales of
Enterprises Ltd
promotional goods
The Flying Angel Belfast Ltd
100
-
Provision of spiritual and
UK
100
(35)
Provision of spiritual and
-
- Sales of catering services
UK
The Mission to Seafarers
58
Provision of spiritual and
Scotland Ltd
practical welfare for
all seafarers
100
9
The Mission to Seafarers
Trust Corporation Ltd
Custodian Trustee on
behalf of the Mission
13.
UK
100
and promotional goods
-
-
Holds property as
Debtors
Group
Company
2012 2011 2012
£’000
£’000
£’000
£’000 £’000
Flying Angel Marketing Enterprises Ltd (FAME)
-
-
26
The Flying Angel Belfast Ltd (FAB)
-
-
10
10
Legacies
81
509
81
509
Other debtors
480
415
380
361
924
497
897
17
561
Amounts due from FAME include a £12,500 loan made to FAME at a market rate of interest that is not repayable in the next two years. The loan of £10,000 to FAB is secured and carries a market rate of interest and is repayable on demand.
Accounts 2012
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14.
Current Liabilities Group Company
2012
£’000
2011
2012
£’000
£’000
2011 £’000
Trade Creditors
43
62
41
Social Security
52
45
48
38
Accruals
708
858
649
792
965
738
887
Opening
Closing
Balance
57
803
15.
Restricted Funds
Expenditure
Transfer
Balance
£’000
£’000
£’000
-
-
-
7
Income
Mangalore
7
ITF JNPT
46
-
-
-
46
Merchant Navy Welfare Board
60
96
-
(40)
116
518
-
-
(17)
501
14
-
-
(14)
-
Belfast
Tees South
Seafarers’ UK
123
-
(123)
-
-
London Diocesan House
6
-
-
-
6
Others
-
44
(18)
-
26
774 140 (141) (71)
702
Restricted Funds represent capital grants (note 1d) received together with donations for specific purposes. Transfers to unrestricted funds represent the release for the year of these grants or donations.
66 | Accounts 2012
16.
Ecumenical Centres Financial details of organisations in which the charity is a joint Trustee and involved in the management are:-
Proportion of controlling influence
Proportion of net assets on dissolution
Felixstowe
Port
for Seafarers
Centres
Humber
of Bristol
Haven
33.3%
33.3%
33.3%
33.3%
33.3%
Milford
- property
33.3%
-
33.3%
33.3%
33.3%
- other
33.3%
-
33.3%
33.3%
33.3%
Last published accounts date
31 December
31 January
31 March
Net surplus/(deficit) in £’000s
Net assets in £’000s
2011
2012
31 March 31 December
2012 2012
2011
(7)
2
(23)
(7)
(8)
694
220
612
150
333
Separate trust agreements exist between the Trustees to ensure that the properties cannot be disposed of without the agreement of all parties concerned. The net assets above include the net book value of these properties. Upon dissolution, the net assets of the Humber Seafarers’ Service can be transferred to an external body with agreement by the members. This may be, but not necessarily, one of the participating societies.
17.
Capital Commitments
At 31 December 2012 the Board had not contracted for any capital expenditure for the Group or Company.
18.
Financial Commitments
At 31 December 2012 the Group and Company had annual commitments under non-cancellable operating leases which expire as set out below:
Land &
Land &
Buildings
Buildings
2012
2011
£’000
£’000
50
50
Over 5 years
19.
Contingent Liabilities
As explained in note 16 the Mission supports other Ecumenical centres. Although these centres operate independently of the Mission there would be certain obligations on the Mission if any of them were to run into financial difficulty. The Mission appoints one or more of their Trustees, normally a Mission Trustee or senior member of staff, to these centres and as far as they are aware there are currently no material matters that would give rise to a liability.
Accounts 2012
| 67
Notes
68 | Notes
Photo: Ship visiting with the Belfast branch of The Mission to Seafarers
Notes
| 69
Trusted Connected Global
The Mission to Seafarers St Michael Paternoster Royal College Hill LONDON EC4R 2RL Telephone
020 7248 5202
Fax
020 7248 4761
Website
www.missiontoseafarers.org
info@missiontoseafarers.org
www.facebook.com/missiontoseafarers
@FlyingAngelNews
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