Mission to Seafarers Trustees' Annual Report 2014 by Laura Hayes

The Mission to Seafarers Trusteesâ&#x20AC;&#x2122; Annual Report and Accounts For the year ended 31 December 2014

Patron Her Majesty The Queen

President Her Royal Highness The Princess Royal

Trustees

Committees – external members and key

Robert B Woods CBE (Chairman) [*G] Rosemary Alexander (from January 2015) [*A] Vice Admiral Sir Tom Blackburn KCVO CB (retired January 2015) [*G;*I] The Revd Canon Christopher Burke [*A] David Cockroft [*R] The Rt Revd Richard M C Frith [*G] Christopher Horrocks CBE [*A] Frances Lloyd Stephen Lyon [*R] William MacLachlan (from January 2015) David Moorhouse CBE [*I] Neale Rodrigues MM [*R] Simon P Sherrard (retired January 2015) [*A]

Executive Secretary General: The Revd Andrew Wright Executive Director: Martin Sandford

[*G] [*I]

International Advisers Mr Anthony Nightingale (Hong Kong) Captain John Menezes (India) The Rt Revd Dr Chris Jones (Australia) The Rt Revd Brian Marajh (South Africa) Company number: 6220240 Charity number: 1123613 St Michael Paternoster Royal, College Hill, London, EC4R 2RL, United Kingdom www.missiontoseafarers.org | @flyingangelnews

*G – Governance and Nominations Committee *R – Remuneration Committee: Su Morgan (External) *I – Investment Committee: None *A – Audit and Risk Committee: Christine Freshwater (External)

The Mission to Seafarers’ Annual Report and Accounts 2014

Contents

Trustees’ Report

Strategic Report

Objectives, Achievements and Future Plans

Strategic Reports: Independent Regions

Financial Review

Statement of Trustees’ Responsibilities

Independent Auditor’s Report

Statement of Financial Activities

Group Balance Sheet

Company Balance Sheet 26 Group Cashflow Statement

Notes to the Financial Statements 28

Trustees’ Report The Trustees Present Their Report With the Financial Statements for The Mission to Seafarers (“MtS”) Registered in England and Wales for the Year Ended 31 December 2014

The Mission to Seafarers’ Annual Report and Accounts 2014

Trustees’ Report 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.” Our vision Our vision is to operate a network where seafarers are valued and cared for in the ports where the need is greatest. We are determined to be in the right ports with the right resources offering support which is relevant, compassionate and lifeenhancing. As a Christian network of co-operating maritime welfare charities working in 71 countries, we have a presence in more than 260 ports and strive to improve and safeguard the wellbeing of the world’s 1.5 million seafarers of all ranks, nationalities and beliefs. Our mission The Mission to Seafarers strives to meet the needs of all seafarers and their families, irrespective of faith or cultural background. Its simple mission is to care for the shipping industry’s most important asset, its people. Throughout a long and distinguished history, MtS has grown to become one of

the largest port-based welfare operators in the world. 118 out of our 260 ports have a Flying Angel Centre. International Headquarters (IHQ) in London directly supports over 70 front-line Staff and around 100 Honorary Chaplains in addition to an army of Volunteers, who visit ships, offer hospitality, drive minibuses and engage in a range of other welfare activity. The Five Marks of Mission The mission statement of the Anglican Communion was adopted by The Mission to Seafarers’ World Consultative Forum (2011) to guide the welfare work that we do: • To proclaim the Good News: for us, this means showing God’s love in practical ways. • To teach and nurture believers: for us, this means helping seafarers to discover God. • To respond to human need: for us, this means caring for any seafarer in distress. • To challenge violence and injustice and to work for peace: for us, this means protecting crews’ rights and resolving issues. • To strive to maintain the integrity of creation: for us, this means helping to look after the world in which we live. Our core values • • • • •

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.

Activities To achieve our mission, MtS provides outreach welfare services to seafarers and their families in around 50 ports in the UK, Europe, Asia, Africa, The Middle East, The Far East and South America, through directly salaried, or grantfunded, port-based chaplaincy teams, and gives support and advice to a further 210 ports through independently run Mission to Seafarers’ sister charities and organisations across the rest of the world as part of our global Mission family. Founded in the UK in 1856, we are proud of our culture and heritage of dedicated service to seafarers, and estimate the following outputs annually: • 807,000 (2013: 902,000) visits by seafarers to seafarers’ centres. • 280,000 (2013: 280,000) transport runs from ship to shore. • 68,000 (2013: 60,000) visits to ships. • 3,000 (2013: 2,800) justice cases. We employ a total of 39 professional maritime welfare Chaplains, 19 of those directly on salaries, and we support a further 20 posts through grant-funded contracts. We provide a lifeline to merchant seafarers, night and day, 365 days a year. The Mission to Seafarers’ International Headquarters in London, United Kingdom sends out information, conducts research, provides fundraising and marketing services, along with reputation and brand

The Mission to Seafarers’ Annual Report and Accounts 2014

support, and manages publications and digital media, including websites, for The Mission to Seafarers’ global family. The Secretary General – amongst other duties – provides the spiritual leadership for the ministry teams which support seafarers in need around the world. We are entirely funded by voluntary donations and rely on the deep generosity of our loyal supporters. Public benefit The Mission to Seafarers’ Trustees confirm that the activities of the charity are carried out, in line with its charitable object and objectives, for the benefit of the public. They further confirm that the impact of our work on Service Users is a key criterion when deciding what activities to undertake and how best to achieve our mission. The Mission to Seafarers’ Trustees therefore confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. Organisational structure MtS is a charity, constituted as a company limited by guarantee and not having share capital. MtS is governed by a Board of Trustees which forms the Board of Directors, as constituted by MtS’s Articles of Association. Members of the Board are both Trustees of the charity and Directors of the company.

Subsidiary companies The Mission to Seafarers’ consolidated accounts also include the following companies, which are wholly controlled by MtS, and are classified as subsidiaries: • The Mission to Seafarers DMCCO, registered in Dubai. • The Dunkirk War Memorial Trust Ltd. • The Flying Angel Belfast Ltd. • The Mission to Seafarers Scotland Ltd. • The Mission to Seafarers Trust Corporation Ltd. • The Flying Angel Marketing Enterprises Ltd. Branches 12 MtS operations, both within the United Kingdom and including Aqaba (Jordan) and Mombasa (Kenya), are known as ‘branches’ and come under MtS direct control. These are wholly funded by us and report their income and expenditure directly to us. These branches are listed to the right and their results are included in the financial statements set out on pages 18 to 40 of this report.

Figure 1: Table of Branches Aqaba, Jordan

Belfast, UK

Cardiff, UK

Falmouth, UK

Fowey, UK

Newport, UK

Mombasa, Kenya

Port Talbot, UK

Tees North (Hartlepool), UK

Tees South (Middlesbrough), UK

Tyne & Wear (South Shields), UK

Welsh Council, UK

The Mission to Seafarers’ Annual Report and Accounts 2014

Grant-funded and paid chaplaincy

Partnerships

Sub-committees

As well as our ‘branches’ we also have paid full-time and grant-funded Chaplains and Ship-visitors in the following areas:

The Mission to Seafarers’ global family of sister charities, seafarers’ centres and organisations works in partnership through local ecumenical networks, and in some cases co-owned property, via its membership of the International Christian Maritime Association (ICMA).

The Board of Trustees has four subcommittees:

Governance and management

Each of the above committees is made up of Trustees and members of the Executive Staff. Where appropriate, the Board may co-opt independent and professional expertise from external sources for the benefit of a committee’s work.

Figure 2. The Mission to Seafarers Funded Honorary Chaplains and Grant-funded Ports

Antwerp, Belgium

Bahrain

Belem, Brazil

Busan, South Korea

Colombo, Sri Lanka

Dar-esSalaam, Tanzania

Dunkirk, France

Dubai, United Arab Emirates

Felixstowe, UK

Fujairah, United Arab Emirates

Gibraltar

Hong Kong, China

Humber Ports, UK

Limassol, Cyprus

Milford Haven, UK

Mangalore, India

North West Ports, UK

Odessa, Ukraine

Portbury, UK

Rotterdam, The Netherlands

Rouen, France

Scottish Ports, UK

Seaham, UK

Singapore

Southampton, UK

Suape, Brazil

Tilbury, UK

Tuticorin, India

Vlissingen, The Netherlands

Yokohama, Japan

Honorary Chaplains Around the world, The Mission to Seafarers appoints part-time Honorary Chaplains to be a point of contact for emergencies and seafarers’ support. The role of the Honorary Chaplain varies with the port and country in which the Chaplain is located, but it is a vital global network, which taps into local maritime knowledge and skills.

The Board of Trustees is drawn from prominent leaders with wide experience of seafaring life, including the Royal Navy, the shipping industry and from London’s financial centre, the City of London. MtS also invites leading members of the clergy to serve as Trustees. The procedure for the election and appointment of Trustees is set out in the Articles of Association of The Mission to Seafarers.

• • • •

Governance and Nominations Audit and Risk Investment Remuneration

In 2014 the MtS decided to appoint International Advisers to strengthen support to the Board of Trustees and to bring local expertise and knowledge on a project by project basis.

Trustees may serve on the Board for two periods of four years, apart from those aged 70 years or more who have to be re-elected annually. The Chairman and Vice-Chairmen are elected for a four-year term.

The new International Advisers are:

The Board requires a quorum of five Trustees and normally meets four times a year. It is the governing council of the organisation.

The day to day management of the charity is delegated to the Secretary General who reports to the Board of Trustees and directs the ministry team. The Lay Staff are led by the Executive Director through two Directorates, Development, and Finance and Administration.

Newly appointed Trustees are given an induction which provides them with information on the work of the organisation and highlights their responsibilities as a Trustee. Some Trustees may also undergo specific training courses as required for their roles. Trustees are also required to sign a Code of Conduct and complete a Register of Interests on appointment.

• • • •

Mr Anthony Nightingale (Hong Kong) Captain John Menezes (India) The Rt Revd Chris Jones (Australia) The Rt Revd Brian Marajh (South Africa)

The Mission to Seafarers’ Annual Report and Accounts 2014

Facts & Figures 2014

807,000 Visits by seafarers to seafarers’ centres

3,000 Justice cases

280,000 Transport runs

68,000 Visits to ships

The Mission to Seafarers’ Annual Report and Accounts 2014

Strategic Report Strategic reorganisation In January 2014, The Mission to Seafarers announced a significant strategic reorganisation, which would build on the foundations of the previous strategy and which looked at regional service delivery and modernisation as the key overarching themes. The focus centred on efficiency and self-sustainability, with MtS embarking on a cost-cutting plan which has realised around £1 million in efficiency savings. Its intention is to establish a strong platform from which to deliver more effectively against the stated charitable aims in the fast changing global maritime environment. It involved three key elements: Reorganisation of International Headquarters The team at International Headquarters was reduced from 32 to 21 posts and a number of changes were made in individual and team responsibilities. The aim was to ensure high quality support for our front-line teams providing services to seafarers at a time of significant change, to make available the maximum possible resources for service delivery and to reduce very significantly our operational budget deficit. Regionalisation The further ‘regionalisation’ of MtS work is aimed at improving accountability and support for all ports, guaranteeing

the best of communication, establishing a strong basis for future development and encouraging local ports and regions to take more responsibility for future direction and funding. •

•

• • • •

In addition to the five ‘independent’ regions three new ones were created, East Asia, South Asia and the Gulf and Europe. The Southern Africa region was extended to include all of subSaharan Africa, including MtS ports in Kenya, Tanzania and Nigeria. Regional Directors were appointed to each region (with the Secretary General taking responsibility for Europe). A commitment to significantly increased development support to the five self-governing regions – Australia, Oceania, US, Canada, Africa. Encouragement to all independent regions to improve governance and regional direction. New Regional Director appointed in Australia. Transitional Regional Directors identified and functioning in US, Canada and Oceania. Conference of all Regional Directors held in June, 2014 with a focus on reaffirming our charitable aims, ensuring global commitment to MtS standards and expectations, maintaining and establishing work that is effective and in line with the modern industry and future development and sustainability.

The intention is that new regions should become self-governing and “independent” within approximately a five year period. UK-funded and grant-funded regional charity 1. East Asia. Regional Director, the Revd Canon Stephen Miller. 2. Europe and United Kingdom. Acting Regional Director, the Revd Andrew Wright. 3. The Gulf and South Asia. Regional Director, the Revd Dr Paul Burt. Internationally-funded regional charities (independent regions) 1. Australia. Executive Officer, the Revd Canon Garry Dodd (The Mission to Seafarers’ Newcastle Australia) 2. Canada. The Revd Nick Parker (The Mission to Seafarers’ Vancouver) 3. Oceania. Regional Representative, Mr Peter Snow (The Mission to Seafarers’ Wellington) 4. Southern Africa. Development Officer, the Revd Cedric Rautenbach (The Mission to Seafarers’ Durban) 5. USA. Regional Director, Mr Ken Hawkins (The Mission to Seafarers’ Seattle) Regional reports for 2014 have been introduced and a new regional map produced (right).

The Mission to Seafarers’ Annual Report and Accounts 2014

Global Review of Ports The Mission to Seafarers has launched an evidence-based Global Review of Ports to ensure that MtS has the right resources in the right ports with effective and diverse models of ministry. That work is in line with developments in the shipping industry and focused where the need is greatest.

The Global Mission Family Canada

Key Branches Grant funded/MoU Independent Region

East Asia

Seattle Vancouver, WA San Francisco Port Hueneme San Diego Corpus Christi

Toronto Montreal Hamilton Halifax

Norfolk Charleston

Change is always challenging, but in order to provide the very highest quality of care we will ensure that MtS has the right resources in the right places, utilising diverse and cost-effective models of chaplaincy and wider team support. We have restated our ongoing commitment globally to work in partnership with others wherever possible, to avoid duplication of welfare work and to share resources effectively.

Port de Bouc

Fos/Marseilles Naples

Gibraltar

Philadelphia

Busan

Limassol

Baltimore

Fujairah Dubai

Palm Beach Port Everglades

New Mangalore Lagos

Belem

Yokohama Kobe

Bahrain

Aqaba

Houston

Port of Spain

Mombasa Dar-es-Salaam

Hong Kong

Navi Mumbai

Bangkok Colombo Tuticorin

Manila

New Zealand and the South Pacific Islands (Oceania)

Singapore Kiribati

Lae Suape The Gulf & South Asia

Walvis Bay

UK Services

Durban

Port Elizabeth

Ngqura

Fremantle

Scottish Ports, Grangemouth

North West Ports Milford Haven Port Talbot Cardiff Newport

Falmouth

Bunbury Albany

South Shields Seaham North Tees South Tees

Belfast

Liverpool Portbury

Southampton

Humber Ports Great Yarmouth

Port Hedland

Australia Africa

Townsville

Dampier Esperance Whyalla Geraldton Wallaroo

Richards Bay

Saldhana Bay Cape Town

Dublin

The new post of Project Manager was created in 2014 to ensure this process was open and transparent, based on evidence and careful assessment of the individual nature of the port. Throughout 2014 we have looked extensively at port locations in the UK and in 2015 the focus will be on wider Europe.

Odessa

Dunkerque

Rouen

Port of Liverpool

New Haven

USA

The Mission to Seafarers’ has made good progress with looking at each individual port to analyse current service provision and to look forward to what might be needed in the next five years.

Rotterdam Antwerp Vlissingen

Thunder Bay

Vancouver

Thevenard Port Pirie

Suva

Gladstone Sydney Geelong

Brisbane Newcastle Pt. Kembla Eden

Port Giles Portland Melbourne

Burnie Devonport Bell Bay Hobart Hastings

Marsden Point Auckland Tauranga Napier Seaview Wellington

Nelson Lyttelton

UK and Europe

Felixstowe Tilbury

Fowey

New strategic approach 2015 A review of The Mission to Seafarers’ Strategy 2010–2014 Delivering Maritime Ministry Beyond the Next Horizon, has been undertaken, with the result that a refreshed strategy was published in Spring 2015. Reaffirming the Past, Resourcing the Future – The Mission to Seafarers’ Strategy 2015–2020, builds on the work of our Global Review of Ports and the strategic reorganisation, both of which are continuing into 2015 and beyond.

As a result of the strategic review a new set of overarching aims and objectives has been approved by the Board of Trustees. Our charitable objects, however, remain the same. These aims, though over a century old, are still valid today. Our approach to welfare is holistic and comprehensive, and is carried out with our core values in mind. Our new strategic objectives will be rolled out to teams across The Mission to Seafarers’ global family during the spring and summer of 2015, and we will assess our outcomes against the new framework in next year’s Annual Trustees’ Report and Accounts.

The Mission to Seafarers’ Annual Report and Accounts 2014

Objectives, Achievements and Future Plans Objective for 2014: To offer practical help and spiritual support at the point of greatest need What we achieved in 2014 Port welfare services • Strengthened our ship-visiting resource in the United Arab Emirates (UAE), adding a new Chaplain. • Took steps to significantly strengthen our team in Singapore. • Appointed new Honorary Chaplains in East Asia for the Port of Batam Indonesia and Port Klang in Malaysia. • Introduced full-time chaplaincy in the port of Jawaharlal Nehru Port Trust (JNPT), India’s largest container and oil terminal port, together with provision of a transport service. • Introduced a port intern scheme with a focus on ship-visiting in Tilbury and ports on the north bank of the Thames. • Reorganised our “Church on the High Seas” ministry aboard cruise ships. • Provided Mersey Mission to Seafarers with increased ship-visiting capacity on the Mersey/Manchester Ship Canal. • Honorary chaplaincy established in Thailand. • Made progress with establishing new chaplaincy in Myanmar. • Exploratory work ongoing on establishing new work in a number of ports across the globe. • Engaged in a new partnership to provide young Christians with an

opportunity to explore their faith delivering maritime ministry to seafarers in partnership with Queen Victoria Seaman’s Rest. • Initiated work in the Gulf and Dubai in the UAE on a new strategy. Flying Angel seafarers’ centres • Opened a new centre for visiting crews in Grangemouth in co-operation with The Apostleship of the Sea (AoS). • Created a new dual role in Dunkirk combining chaplaincy and centre management. • Our President HRH The Princess Royal opened the refurbished South Shields Seafarers’ Club. • The Port of Jurong International Dropin Centre was relaunched following a major refurbishment in June 2014. • The seafarers’ centre at Tuticorin in South India has undergone a major facelift, including the addition of new recreational facilities. Communication services • Provided Glasson Dock and Workington, UK with port-wide Wi-Fi. • Installed a port-wide Wi-Fi system in Ipswich, UK.

Emergency response MtS has responded to a range of emergency and disaster situations at sea and in port around the world in 2014. • Extreme weather conditions in the UK in February 2014 resulted in crews being left stranded in ports. • The Mission to Seafarers in Busan, South Korea was at the forefront of the maritime emergency response when the passenger ferry the MV Sewol sank in May 2014 killing 212 people, the majority being high school students. • Increasing incidents are being reported of accidents involving refugees and migrants in overcrowded vessels in the Mediterranean. • Piracy continues to flourish in Africa and East Asia, despite very welcome improvements in the Gulf of Aden. Challenges faced • Resourcing our service provision and maintaining essential income. • Establishing high quality, effective, universal Key Performance Indicators. • Overcoming barriers to establishing work in some countries. • Providing effective mechanisms for support and accountability. • Maintaining effectiveness and

The Mission to Seafarers’ Annual Report and Accounts 2014

• • •

Strategic objectives 2015 Continue to support seafarers by promoting their spiritual, moral and physical wellbeing in the ports where the need is greatest • Expand our Global Review programme. • Embrace new models of operation. • Strengthen the regional structure to allow areas to determine the mix of services required. • Transform International Headquarters (IHQ) into a global resource centre.

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For 2015 we introduced a new objective around valuing our people – without whom we simply could not function.

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•

engagement across a large honorary chaplaincy network. Balancing out work in relation to global need (with 50% of our service delivery costs still focused on Western Europe). Maintaining a global strategy in the light of local sensitivity. Identifying, appointing and supporting Volunteers, especially with a mixed age profile. Maintaining the effectiveness and viability of the MV Flying Angel in UAE.

The Mission to Seafarers’ Annual Report and Accounts 2014

Objective for 2014: To provide advocacy services and campaign for changes that improve lives What we achieved in 2014 Justice, advocacy and public affairs • The Mission to Seafarers was called to help the multinational crew of the MV Seaman Guard Ohio anti-piracy support vessel which was arrested at Tuticorin port on suspicion of terrorism and crime. • MtS worked on policy responses to the International Maritime Organization (IMO) and International Labour Organization’s (ILO) agenda relating to the ‘human element’ (seafarers) in shipping. • In 2014 the ILO listed 159 abandoned merchant vessels, with some dating back to 2006. The Mission to Seafarers attended to many hundreds of abandoned seafarers in 2014, including those on the MV Donald Duckling in the Port of Tyne. • MtS represented the Anglican Communion at the United Nations High Commissioner for Refugees (UNHCR) High Commissioner’s Dialogue, ‘Protection at Sea’. MtS participated in the new initiative of the Anglican Communion to combat human trafficking and slavery. • The accreditation of MtS Regional Directors as ILO trainers continues and is proving to be instrumental in furthering our relationships with Flag States and Port State Control authorities. • The development of the advanced training course regarding the mental health of seafarers has been completed

for delivery in 2015. Ongoing research and evaluation is being carried out to deliver interactive internet-based education for Chaplains. • We continue to participate in training courses offered under the auspices of the Merchant Navy Welfare Board and ICMA. Challenges faced • Maintaining adequate and consistent communications across multiple locations and across language and cultural barriers. • Increasing incidents of human trafficking at sea, and deaths in the Mediterranean due to the international crisis in Iraq and Syria. Organising a co-ordinated approach to chaplaincy provision in local ports where survivors are taken in such incidents. • Balancing confidentiality of clients and seafarers with the needs of raising awareness of human rights issues as the highest levels. • Working with groups of seafarers and their families with conflicting agenda, needs and wishes. • Maintaining safety and security for Chaplains, Volunteers and Staff working across the globe in remote and insecure ports in countries where terrorism has developed or increased in the last year.

Strategic objectives for 2015 Champion seafarers who have suffered due to injustice and mistreatment • Listen to our Service Users. • Act as an advocate for seafarers at the International Maritime and Labour Organizations (IMO and ILO) and other fora as appropriate. • Expand our attendees to the ILO’s Maritime Labour Academy. • Implement a universal standard of first responder training, including crisis preparedness and critical incident stress counselling. • Use technology to make training more effective. • Develop robust monitoring and evaluation systems. Become the world leader in maritime welfare • Reaffirm common standards of care. • Collaborate with others in the provision of welfare and in training our Staff. • Promote best practice in maritime ministry. • Work with Anglican and other churches.

The Mission to Seafarers’ Annual Report and Accounts 2014

Objective for 2014: To optimise the use of resources

What we achieved in 2014

Challenges faced

Strategic objectives for 2015

Fundraising and communications

•

For 2015 we introduced a new objective around valuing our people – without whom we simply could not function:

•

• •

•

Campaigns underwent strong development with the use of new celebrity Volunteers for Sea Sunday and Woolly Hat Day. Direct mail strategies were further enhanced by integrated communications and high profile media support. Publishing of Flying Angel News and The Sea newspaper was reviewed and further efficiency savings have been realised through effective purchasing. Challenge event fundraising underwent strong growth, with Mission Row Around Singapore Island (RASI) 2015 launched in September 2014. Branding and public relations were underpinned by a consolidated global branding strategy agreed at the Directors Conference in Singapore in June 2014. A new legacy strategy was developed and launched in Summer 2014. MtS Scotland launched a new fundraising strategy to drive significant income over the next three years. Our global media profile was significantly strengthened with key articles in leading trade and national press. Digital and social media showed very strong improvements; and our website remains a key channel for promotion. MtS launched three new films to encourage engagement and donations from supporters.

•

• • •

Working with reduced resources to maximise value and to maintain fundraising income. Developing new markets for fundraising in East Asia and USA, working with new cultures and at long distances from IHQ. Working with different legal frameworks for marketing in new territories. Maintaining key challenge events and developing new income streams. Building and maintaining the brand of MtS across new regional structures.

Volunteers •

•

The Mission to Seafarers is greatly indebted to its Volunteers for their commitment, time and skills. This includes all Volunteers that help with MtS’s work, whether directly helping in ports or in seafarers’ centres, or indirectly helping by completing surveys or contributing to MtS campaigns and appeals. In particular, we could not extend our local networks without our fundraising committees and branch committees, and those who Volunteer in Flying Angel Centres. We also could not function without the support of those in the shipping industry who take part in our challenge activities, such as the Flying Angel Ride and the London to Paris Bike Ride. We thank them all for their support.

Objective: We will value our colleagues and help them succeed • • • •

Promote and support a culture of support. Promote and support a culture of communication. Promote and support a culture of training. Promote and support a culture of responsibility.

Our final objective for 2015 restates our intention to ensure that we use funds donated to us prudently to support welfare services for seafarers in a sustainable manner. Objective: Work towards a balanced budget • • • •

Reduce levels of financial and operational dependence on IHQ. Use a proportion of MtS reserves to invest in development of the regions. Establish and develop new fundraising revenue streams in the UK and overseas. Regularly review strategic plan and budget.

The Mission to Seafarers’ Annual Report and Accounts 2014

Strategic Reports: Independent Regions We are proud to work with our sister MtS charities around the world in a further 15 countries in our five independent regions, which engage with us to provide a dynamic and responsive welfare service for seafarers. While these are independent charities in their own right, they co-operate with MtS on matters of welfare provision and communications. They are responsible for their own financial affairs and statements. Australia

Canada

Oceania

The challenges that are faced for the upcoming year are in continuing to find ways to overcome the difficulties attendant on supporting the 29 centres and seven contact ports that are spread around this vast country of Australia, with an area over 7.7 million square kilometres, compared to Europe’s 3.5 million square kilometres. Currently we have MtS Centres and contact people who serve 85% of seafarers who enter Australian waters. We have opened new ports in 2014 and are considering a new ‘fly-in, fly-out’ model of chaplaincy as a means of countering some of the great difficulties experienced with the geographically isolated ports where there are no facilities available to seafarers at present. We are also looking at mobile ‘caravan’ type centres which can be moved around ports and docks. We are continuing to raise the profile of MtS by working with the Australian Council for Volunteers with whom we organised a high profile tour of Australia.

MtS Canada, is a rather loose confederation of stations knit together by will rather than design. With vast distances between stations, it is very difficult if not impossible to be present for one another. Time differences, full, part-time and Honorary Chaplain responsibilities and parochial interests fracture the best of intentions. Needless to say, the efforts of pulling the region together are fledgling at best, even after all these years. Each MtS has its own ethos and priorities dependent on the trade that is present in each locale. It is the diversity of each station, mirrored by the Dominion itself that makes the variety of ministry so rewarding and enticing. We hope to convene a Summer Conference in Halifax in 2015 to give clarity to our operations and bring into being MtS Canada in full.

The Oceania region covers New Zealand, Polynesia and Melanesia. The region provides welcoming welfare centres at key ports and chaplaincy services are offered at all ports under our care, either by Ship-visitors or at the welfare centres or both. The majority of ports operate on minimum Volunteer Staffing. We will continue to provide advocacy services as necessary but they are rarely needed. Health issues for seafarers are dealt with and there are employment issues, as well as the detention of ships in port for health and safety breaches. We will also continue to promote The Mission to Seafarers wherever it is appropriate, principally through Sea Sunday and the provision of woolly hats throughout the year, and by taking lead positions on the Seafarers’ Welfare Board for New Zealand.

The Mission to Seafarersâ&#x20AC;&#x2122; Annual Report and Accounts 2014

Southern Africa

United States of America

Thank You

Over 2,000 ships were visited by Chaplains and Ship-visitors in the region of Southern Africa in 2014, we held Eucharist services in most centres and in eight ports transport was made available to seafarers to visit a centre. Our centres provide essential means to communicate with family and friends, as well as providing numerous recreational facilities. We undertake a hospitalvisiting programme as well as offering a counselling and support service to seafarers who visit centres in the region. Centre Managers, Staff and Chaplains across the region have been involved in numerous welfare and justice cases this year. These mainly included wage disputes and contractual obligation issues. We are working on a new Africa structure and constitution in 2015 to bring clarity to our work. Fundraising and campaigns are being developed for Sea Sunday locally to raise more income over the next year.

The Mission to Seafarersâ&#x20AC;&#x2122; Seattle has become one of the most efficient and effective maritime ministries in the western United States, thanks largely to our solid base of Volunteers. These Volunteers, mostly drawn from local Episcopal congregations, allow us to transport nearly 12,000 seafarers from cruise and merchant terminals across the port. We provide on board Wi-Fi for more than 7,000 seafarers and transport more than 3,000 merchant seafarers annually. 10,000 cruise ship Staff use our facilities each year. We aim to continue our role as the recognised leader in port ministry in the NW United States, and as a place where both seafarers and Volunteers can find fulfilment and a passionate welcome. MtS Seattle leads in the USA through a partnership with MtS IHQ in London and is currently working to provide a more coherent regional perspective. We will be focusing on developing new and deeper ecumenical relationships and growing our ministry. This will help us to build a strong network of partners and peers who share our values and commitments to seafarer welfare, and to provide visibility with local Episcopal parishes. We are currently assessing plans to open in new port locations and looking at dynamic fundraising initiatives to ensure that we are sustainable in the longer term.

The Mission to Seafarers could not exist without funding from individual donors, companies, trusts, public bodies and other associations, and we thank all of them for their support.

We would also like to record our thanks to all of the Chaplains and Staff of The Mission to Seafarers, who show so much dedication and commitment to their work and to the charity. We would like to thank our Mission to Seafarersâ&#x20AC;&#x2122; partners overseas who continue to share our global vision of improving the wellbeing of seafarers and their families across the world.

Financial Review The Mission to Seafarersâ&#x20AC;&#x2122; Income and Expenditure for the Year Ending 2014

The Mission to Seafarers’ Annual Report and Accounts 2014

Financial Review The Group Statement of Financial Activities on page 24 shows net outgoing resources before recognised gains on investment assets of £1,213,000 (2013: £549,000). If gains on disposal of property no longer required for the purposes of The Mission to Seafarers are excluded, the net outgoing resources are £1,368,000 (2013: £816,000). Total incoming resources were £4,601,000 (2013: £5,087,000). The Trustees recognise that legacies of £1,057,000 (23%) (2013: £1,482,000 (29%)), continue to comprise a significant proportion of incoming resources excluding gains on property and investment assets. Total resources expended were £5,814,000 (2013: £5,636,000). An analysis of this expenditure is given in note 6 to the financial statements. The proportion of total expenditure that MtS considers to be of a charitable nature was 78% (2013: 75%). It is important to stress that the sustainability of the MtS’s operations, both in the UK and as a resource provider to other parts of the worldwide Mission global family, depends on its ability to generate cash, and to the right is a summary of the MtS’s results for the last five years.

History Statement of Financial Resources 2014

2013

2012

2011

2010

£’000

Total Incoming Resources

4,601

5,087

4,750

5,463

4,660

Incoming Resources excluding Property and Investment Gains:

4,446

4,820

4,355

5,300

4,547

Resources Expended

5,814

5,636

5,370

5,648

5,657

(1,368)

(816)

(1,015)

(348)

(1,110)

Net (Loss) before Property and Investment Gains Balance Sheet Tangible Assets

6,263

7,206

7,157

6,840

6,714

Investments

21,053

21,065

19,972

18,157

19,268

Net Current Assets

2,303

1,960

1,762

3,852

4,129

Net Assets

29,619

30,231

28,891

28,849

30,111

Endowment

672

Restricted

604

638

702

774

631

Designated

14,000

Unrestricted

15,015

15,593

28,189

28,075

28,808

Total Reserves

29,619

30,231

28,891

28,849

30,111

(2,358)

(982)

(1,305)

(512)

(1,170)

Cash Flow Net cash outflow from operating activities

The Mission to Seafarers’ Annual Report and Accounts 2014

Risk management The Board of Trustees maintains a Risk Register, which was reviewed, simplified and updated in detail in 2014, 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. The principal risks that MtS faces are that it is unable to raise sufficient funds to permit it to maintain or expand the services it offers to seafarers to meet the level of need identified, or an event occurs which damages the reputation of MtS to such an extent that it is unable to raise sufficient funds to continue. The Board of Trustees has overall responsibility for risk management. It is included in the remit of the Audit and Risk Committee and continually monitored by the senior management team. The Risk Register will continue to be reviewed as needed, but as a minimum will be looked at annually. Reserves The level of the unrestricted general reserves has provided some protection to The Mission to Seafarers and allows time to adjust to changing financial circumstances. This has limited the risk to service provision from operating deficits, such as MtS has experienced in recent years, or an unexpected need for

unbudgeted expenditure. MtS seeks to maintain general reserves to reflect the long-term nature of its work. The Trustees take the view that, whilst they are the temporary custodians of these reserves and it is essential that they leave The Mission to Seafarers in a state where it can continue for as long as seafarers need it as there is no sign of this need diminishing, a proportion of the current reserves should be available over the next five years to implement fully the regionalisation strategy initiated in January 2014. The objective at the end of that period is that the revenues achievable and the expenditure incurred in meeting seafarers’ needs should be in balance. Over the past five years, the cumulative operating loss has been £4 million. It is only the performance of MtS’s investment portfolio, and the sale of some property assets, that has allowed MtS to be in nearly as healthy a position at the end of 2014 as it was at the end of 2010. The consolidated reserves of The Mission to Seafarers group amount to £29 million. Following Board discussions of the issue in the past few years, the Trustees have resolved, as last year, to designate reserves of £14 million which are not available for general purposes. This is made up of £7 million in fixed assets, £6 million in branch and subsidiary reserves and £1 million in future commitments relating to Chaplain and pensioner accommodation. There are also restricted reserves of over £600,000. This leaves over £15 million in reserves for general purposes.

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: • MtS 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 it operates. There are continuing indications that some of MtS’s operations overseas, which endeavour to be self-funding, are struggling to maintain essential services. The Mission to Seafarers 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 2014 legacy income was £1,057,000 (2013: £1,482,000). Whilst MtS 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, as evidenced by the decline between 2013 and 2014.

The Mission to Seafarers’ Annual Report and Accounts 2014

The Trustees have, therefore, made allowance for the uncertainties that arise from legacy income. • The Mission to Seafarers 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. 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 to Seafarers’ 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 MtS 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 Conduct Authority. Asset allocation and investment performance The Investment Committee regularly monitors the risk characteristic and asset allocation of the portfolio by means of reports from, and review meetings with, the investment managers. The performance of UBS, MtS’s primary investment managers, is measured against a composite benchmark designed to reflect MtS’s financial objectives and appetite for risk. The Mission to Seafarers’ agreement with UBS has been that performance will be assessed on a three year rolling basis. Over the last 12 months UBS have remained confident about the outlook for the global economy and equity markets particularly (around 78% of the portfolio). They have kept cash to a minimum. As a result the portfolio has produced a total return (income plus capital appreciation) of 5.8% after all costs. The last three years have seen strong equity and fixed income markets and for the three year period to 31 December 2014 the portfolio has produced an annual return, after all fees, of 10.2% per annum; by comparison the benchmark rose by 10.7% per annum. The underperformance arises largely from the poor returns from the Triton Property Fund which was sold in 2013.

The Mission to Seafarers’ Annual Report and Accounts 2014

Statement of Trustees’ Responsibilities The Trustees (who are also Directors of The Mission to Seafarers for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: • Select suitable accounting policies and then apply them consistently. • Observe the methods and principles in the Charities Statements of Recommended Practice (SORP). • Make judgements and estimates that are reasonable and prudent. • State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of information to the auditor In so far as the Trustees of the charity at the date of approval of this report are aware: • There is no relevant audit information of which the charitable company’s auditor is unaware; and • The Trustees have taken all steps that ought to have been taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Approved and authorised for issue by the Board on 29 April 2015 Signed on its behalf by:

Robert Woods CBE Chairman of the Board

Christopher Horrocks CBE Chairman of the Audit and Risk Committee

The Mission to Seafarers’ Annual Report and Accounts 2014

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 2014 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 20. 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 charitable 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 set out on page 21, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the

financial statements and for being satisfied that they give a true and fair view.

Opinion on financial statements

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 (APB’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 misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees’ Annual Report and Strategic Report 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.

In our opinion the financial statements:

•

Give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2014, 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. Have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matters prescribed by the Companies Act 2006 In our opinion the information given in the Strategic Report and Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

The Mission to Seafarers’ Annual Report and Accounts 2014

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 and sufficient 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.

Helena Wilkinson BSc FCA DChA (Senior Statutory Auditor) For and on behalf of: Price Bailey LLP Chartered Accountants Statutory Auditors 7th Floor Dashwood House 69 Old Broad Street London, EC2M 1QS

The Mission to Seafarers’ Annual Report and Accounts 2014

Statement of Financial Activities

Incorporating an income and expenditure account for the year ended 31 December 2014 Unrestricted Funds

Restricted Funds

Total 2014

Total 2013

£’000

2,840

216

3,056

3,309

237

202

540

586

435

495

Notes

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

333

495

4,385

216

4,601

5,087

1,083

1,292

• Fundraising & Trading

106

• Investment management costs

(14)

4,357

186

4,543

4,211

Other incoming resources

Total Incoming Resources Expenditure Cost of generating funds • Cost of generating voluntary income

Charitable activities Governance costs Total Resources Expended

Net outgoing resources before transfer Transfers between funds

Net outgoing resources before recognised gains and losses Realised gains/(losses) on investments

5,628

186

5,814

5,636

(1,243)

(1,213)

(549)

(64)

(1,179)

(34)

(1,213)

(549)

2,080

(18)

Foreign exchange gain/(loss)

(85)

Net income/(expenditure)

938

(34)

904

(652)

(1,516)

1,992

(578)

(34)

(612)

1,340

Unrealised (losses)/gains on investments Net movement in funds

Reconciliation of funds Total funds brought forward

29,593

638

30,231

28,891

Total Funds Carried Forward

29,015

604

29,619

30,231

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 20 form part of these financial statements.

The Mission to Seafarers’ Annual Report and Accounts 2014

Group Balance Sheet

For the year ended 31 December 2014 Notes

Unrestricted Funds

Restricted Funds

Total 2014

Total 2013

£’000

Fixed assets Tangible assets

5,698

565

6,263

7,206

Investments

21,053

21,065

26,751

565

27,316

28,271

1,247

373

Short term deposits

563

602

634

Cash at bank and in hand

988

1,788

2,829

2,868

2,829

Current assets Stocks-goods for resale Debtors

Current liabilities

565

869

Net current assets

2,264

2,303

1,960

Net assets

29,015

604

29,619

30,231

15,015

15,593

14,000

604

638

29,015

604

29,619

30,231

Funds Unrestricted Designated

Restricted

Total

Company Registration Number 6220240 Approved and authorised for issue by the Board on 29 April 2015 Signed on its behalf by:

Robert Woods CBE Chairman of the Board

Christopher Horrocks CBE Chairman of the Audit and Risk Committee

Notes 1 to 20 form part of these financial statements.

The Mission to Seafarers’ Annual Report and Accounts 2014

Company Balance Sheet

For the year ended 31 December 2014 Notes

Unrestricted Funds

Restricted Funds

Total 2014

Total 2013

£’000

Fixed assets Tangible assets

5,621

565

6,186

6,809

Investments

20,894

20,912

26,515

565

27,080

27,721

838

304

Short term deposits

563

602

634

Cash at bank and in hand

571

1,013

1,995

2,034

1,978

499

818

Net current assets

1,496

1,535

1,160

Net assets

28,011

604

28,615

28,881

General

14,011

16,243

Designated

14,000

12,000

604

638

28,011

604

28,615

28,881

Current assets Stocks-goods for resale Debtors

Current liabilities

Funds

Restricted

Total

Company Registration Number 6220240 Approved and authorised for issue by the Board on 29 April 2015 Signed on its behalf by:

Robert Woods CBE Chairman of the Board

Christopher Horrocks CBE Chairman of the Audit and Risk Committee

Notes 1 to 20 form part of these financial statements.

The Mission to Seafarers’ Annual Report and Accounts 2014

Group Cashflow Statement For the year ended 31 December 2014 Reconciliation of Net Outgoing Resources for the Year to Net Cash Outflow From Operating Activities

2014 £’000

2013 £’000

(1,213)

(549)

Gain on disposal of tangible fixed assets

(165)

(281)

Investment Income

(540)

(586)

698

261

Decrease in debtors

(874)

188

Increase/(decrease) in creditors

(304)

(85)

(2,358)

(982)

(2,358)

(982)

540

586

(137)

(870)

(8,668)

(8,357)

Net outgoing resources

Depreciation Decrease/(increase) in stocks

Exchange (loss)/gain on consolidation Net cash outflow from operating activities Cashflow statement Net cash outflow from operating activities Returns on investments and servicing of finance Investment Income Capital expenditure and financial investment Payments to acquire tangible fixed assets Purchases of investments

544

838

8,837

10,775

576

2,386

(1,242)

1,990

(Increase)/decrease in cash on short term deposits

(32)

Increase in cash with Investment Managers

410

(1,534)

442

(1,566)

(800)

424

Receipts from sales of tangible fixed assets Receipts from sale of investments

Net cash inflow/ (outflow) before management of liquid resources Management of liquid resources

Increase in cash

1 January 2014

Cash outflow

31 December 2014

1,788

(800)

988

Analysis of changes in net cash Cash at bank and in hand

The Mission to Seafarers’ Annual Report and Accounts 2014

Notes to the Financial Statements For the year ended 31 December 2014

1. Accounting policies 1.1 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 Balance Sheet on page 26 includes the assets and liabilities of the branches detailed on page 5. The Group Statement of Financial Activities on page 24 and the Group Balance Sheet on page 25 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 outgoing resources for the year were £266,000 (2013: incoming £1,340,000). 1.2 Incoming 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. Irrecoverable VAT is charged to Support costs which are then reallocated to the headings on the Statement of Financial Activities. 1.3 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. The Mission to Seafarers maintains a legacy pipeline system which, in addition to accrued legacies, includes further estimated legacies of which MtS is aware but which do not meet the above criteria and which, therefore, have not been included within these accounts. The estimated value of legacies in the pipeline is £791,000 (2013 £878,000). 1.4 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.

1.5 Allocation of costs Charitable expenditure comprises expenditure directly relating to the objects of The Mission to Seafarers. It includes employment and associated costs of Chaplains including recruitment and training, together with advice to MtS and linked 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 MtS’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 on the basis of 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. 1.6 Pension costs The Mission to Seafarers makes contributions to defined benefit and defined contribution schemes. The defined benefit schemes are multiemployer pension schemes and it is not possible to separately identify the assets and liabilities of the schemes attributable to the MtS. In accordance with FRS 17 therefore, MtS 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.

The Mission to Seafarers’ Annual Report and Accounts 2014

1.7 Tangible fixed assets

1.11 Funds

2.2 The Dunkirk War Memorial Trust Ltd

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:

Restricted Funds represent capital grants received (noted above) together with donations for specific purposes. Transfers to unrestricted funds represent the release for the year of these grants or donations.

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.

• 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. • MV Flying Angel (vessel): 15 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. 1.8 Investments Investments are stated at mid-market value. Realised and unrealised gains and losses are shown in the Statement of Financial Activities. 1.9 Stocks Stocks are valued at the lower of cost and net realisable value.

2. Subsidiary and connected undertakings 2.1 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.

2014

2013

£’000

Voluntary income

Activities for generating funds

Investment income

Incoming resources from charitable activities

105

111

Other incoming resources

Total incoming Resources

190

159

Fundraising & trading

2014

2013

£’000

503

522

Total incoming resources

Investment management costs

505

524

Charitable activities

Charitable expenditure

834

406

(329)

118

Voluntary income Investment income

Net gain retained in subsidiary

219

214

Governance costs

Other resources expended

Total resources expended

232

221

Net outgoing resources

(42)

(62)

Net unrealised gains on investments

1.10 Foreign currency translation

Foreign exchange losses

(2)

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.

Net (loss) retained in subsidiary

(38)

(62)

The Mission to Seafarers’ Annual Report and Accounts 2014

2.3 Flying Angel Marketing Enterprises Ltd (FAME) The Mission to Seafarers owns through nominees the whole of the issued share capital of FAME. One Trustee and one past Trustee of MtS sit on the board of FAME but receive no remuneration for doing so. FAME is a retailer and distributor of Christmas cards and novelties, and is party to any commercial agreement that is not considered a charitable activity of MtS. Any taxable profit from trading is gifted to MtS.

2.4 The Flying Angel Belfast Ltd

2.5 The Mission to Seafarers Scotland Ltd

The Flying Angel Belfast Ltd was set up to operate catering services in The Mission to Seafarers’ Belfast premises. All the shares in this company are owned by MtS. Any taxable profit is gifted to MtS.

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.

2014

2013

£’000

Cost of sales

(15)

(16)

Gross profit

Administration

(13)

(12)

Donated to The Mission to Seafarers

Turnover

2014

2013

£’000

Voluntary Income

188

137

Activities for generating funds

Total incoming resources

193

143

Cost of generating funds

119

127

Governance costs

Other

2014

2013

£’000

Cost of sales

Gross profit

Administration

(4)

(3)

Donation to The Mission to Seafarers

(21)

(16)

(25)

(19)

Total resources expended

172

161

Net gain/(loss) retained in subsidiary

(18)

Turnover

Net gain retained in subsidiary

Fundraising and trading Charitable activities

The Mission to Seafarers’ Annual Report and Accounts 2014

2.6 The Mission to Seafarers Trust Corporation Ltd (MTSTC)

5. Other income

MTSTC holds real property and investments as custodian Trustee on behalf of The Mission to Seafarers. It has no transactions on its own account. 3. Voluntary income 2014

2013

£’000

General donations

1,999

1,827

Legacies

1,057

1,482

Total

3,056

3,309

4. Investment income 2014

2013

£’000

Listed investments

496

557

Bank deposit interest

Rental income

Total

540

586

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 MtS’s own activities.

2014

2013

£’000

Surplus on disposal of properties

155

267

Surplus on disposal of other assets

Vote 4 (See note 9)

140

158

Other

Total

333

495

The Mission to Seafarers’ Annual Report and Accounts 2014

6. Analysis of expenditure

7. Minstry grants

Ministry

Comms

Regions

Fundraising

Support

Total 2014

Total 2013

£’000

Cost of generating funds

2014

2013

£’000

Australia

Bahrain

Belem

Colombo

Great Yarmouth

JNPT India

Cost of generating voluntary income

Fundraising & trading

106

Investment management

(14)

Limassol

Mangalore

449

293

3,251

550

4,543

4,211

Oceania

Odessa

Portbury

449

293

3,404

471

1,197

5,814

5,636

Busan

Rotterdam

Rouen

Seaham

Singapore

Southern Africa

South Shields

Suape

Tuticorin

Vlissingen

Total

394

287

Charitable activities Governance

Staff costs

445

580

1,083

1,292

368

131

1355

398

475

2,727

3,012

394

287

Other

162

1,655

722

2,693

2,337

Total

449

293

3,404

471

1,197

5,814

5,636

(note 8) Grants (note 7)

Support costs not directly attributable to the headings on the Statement of Financial Activities are reallocated on the basis of headcount at the MtS’s International Headquarters. Audit fees included in governance costs for the group amount to £25,600 (2013: £21,000) and other fees paid to the auditors for non-audit services total £1,100 (2013: £5,000).

Depreciation costs total £698,000 (2013: £261,000) including impairment losses for property and the vessel of £472,000 (2013: none). Operating lease payments total £51,000 (buildings £50,000 and other £1,000) (2013: £51,000, buildings £50,000 and other £1,000).

The Mission to Seafarers makes grants to other maritime organisations whose work will fulfill our charitable objectives. Grants are to support direct maritime ministry or the development of maritime ministry. Amounts are agreed annually although some may be agreed for periods of up to three years. The terms and amounts will be set out in a Memorandum of Understanding (MoU) and funded organisations are required to report to the Mission to Seafarers annually to ensure that the terms of the MoU have been met.

The Mission to Seafarers’ Annual Report and Accounts 2014

8. Staff costs Charitable Activities

Raising Funds

Support

Total 2014

Total 2013

£’000

1,255

322

308

1,885

1,921

Social security costs

124

184

182

Other pension costs

182

215

275

Other Staff costs

293

121

443

634

1,854

398

475

2,727

3,012

Wages & salaries

Total Staff number

Other Staff costs include recruitment, compensation for loss of office, training, welfare of overseas employees, temporary Staff and travel related costs. As part of the ongoing strategic reorganisation a redundancy provision of £40,000 has been made for 2014 (2013: £160,000). Employees with remuneration (excluding benefits in kind) in excess of £60,000: • £60,000 to £70,000 0 (2013: 2). • £70,000 to £80,000 2 (2013: 1). Employers’ pension contributions for these employees are 7% £10,000 (2013: £14,000) 9. Pensions 9.1 Defined benefit schemes The Mission to Seafarers 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. • 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 MtS. The Church of England Pensions Board has stated that it is unable to identify MtS’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 to Seafarers 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. CEFPS A valuation of the CEFPS was carried out as at 31 December 2012 and revealed a shortfall of assets of £293 million with assets of £896m and a funding target of £1,189m. All of MtS’s employed Chaplains are currently funded by the Archbishop Council under Vote 4 provisions. Employer’s contributions of £140,000 (2013: £158,000) paid by MtS 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).

CEDBS For funding purposes the CEDBS is divided into a Life Risk Section and a General Fund, which is made up of participating employer subsections. The Life Risk Section provides pensions and death in service benefits on a pooled basis thereby sharing certain risks between employers, including those relating to mortality and post retirement investment returns. The General Fund contains the employers’ active employees and members who have left and retained entitlement to deferred pensions. A valuation of the CEDBS is carried out once every three years, the most recent was carried out as at 31 December 2013. In this valuation, the Life Risk Section was shown to be in deficit by £0.6m and the General Fund by £12.3m. Of this, the Mission’s deficit was identified as £313,000. Other available information relating to the valuation as at 31 December 2013 is given below.

Deferred pensioners Active members

Total Scheme Members

MtS Members

1,725

626

During the year, The Mission to Seafarers made pension contributions of £19,000 (2013: £36,000).

The Mission to Seafarers’ Annual Report and Accounts 2014

9.2 Defined contribution schemes

10. Transactions with Trustees

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 MtS. There are 17 (2013: 20) members of Staff in this scheme at 31 December 2014. Contributions to this scheme in 2014 were £40,000 (2013: £58,000) with £4,900 due to be paid at the year end (2013: £5,300).

Two Trustees (2013: 1) received remuneration during the current year. Francis Lloyd received £4,100 (including £300 outstanding to be paid at the year end) for consultancy services relating to strategic fundraising and Stephen Lyon received £200 for Staff training regarding the Mission’s relationship with the Anglican Church. These consultancy fees totalled £4,300 (2013: £1,000). There were no other payments to Trustees outstanding at the year end.

The Mission to Seafarers contributes 7% to an additional money purchase scheme for one active member (2013: 1) which is administered by a pension provider selected by that member. MtS contributions for 2014 totalled £ 2,000 (2013: £2,000). 9.3 Other Amounts paid in respect of unfunded pensions during the year were £6,000 (2013: £6,000). 9.4 Auto-enrolment Following the implementation of The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010, The Mission to Seafarers was required to commence auto-enrolment from 1 March 2015, deferred to 1 June 2015. All employees aged 22 and over, under state pension age, earning £10,000 or more a year and who do not currently have a workplace pension will be automatically enrolled from that date. Arrangements are in hand to identify and inform relevant Staff about their pension options.

During the year expenses were reimbursed to 6 Trustees (2013: 6) for travel to attend meetings of, and on behalf of, MtS. The total amount reimbursed to Trustees in 2014 was £1,000 (2013: £4,000).

The Mission to Seafarers’ Annual Report and Accounts 2014

11. Tangible fixed assets Group Property

Motor Vehicles

Vessel

Fixtures & Equipment

Total

Cost

£’000

1-Jan-14

7,202

772

725

1,074

9,773

Additions

137

Disposals

(374)

(83)

(457)

31-Dec-14

6,854

756

725

1,118

9,453

1-Jan-14

760

510

350

947

2,567

Provided during the year

101

226

(75)

Impairment charges

182

290

472

31-Dec-14

988

536

675

991

3,190

Net book value 31-Dec 2014

5,886

220

127

6,263

31-Dec-13

6,442

262

375

127

7,206

Depreciation

Disposals

The company Property

Motor Vehicles

Fixtures & Equipment

Total

Cost

£’000

1-Jan-14

7,201

692

948

8,841

Additions

106

(373)

(53)

(426)

6,854

684

983

8,521

1-Jan-14

760

438

834

2,032

Provided during the year

174

(53)

Disposals

Depreciation

Disposals Impairment charges

182

31-Dec-14

988

482

865

2,335

Net book value 31-Dec-2014

5,866

202

118

6,186

31-Dec-13

6,441

254

114

6,809

The Mission to Seafarers’ Annual Report and Accounts 2014

Property The properties held are split between categories as follows:

Freehold

2014

2013

£’000

4,738

5,219

Leasehold

1,128

1,222

Total

5,866

6,441

Freehold and leasehold property represents the book value of Staff houses, pensioners’ houses, and club and office premises. Premises and club leases are long-term with many at peppercorn rents. All assets are used by the charity for its charitable purposes.

The Mission to Seafarers’ Annual Report and Accounts 2014

12. Investments The Mission to Seafarers’ main investment advisors charge a management fee offset by the commission charge on each transaction up to a maximum amount. The fees for 2014 were £27,000 (2013: £40,000). The commission charges of £17,000 (2013: £58,000) are included in the additions and deducted from the proceeds of investment transactions. The fees are offset against the commission. Other fees, including intermediary charges, total £27,000 (2013: £13,000). Significant investment holdings (over 5%) based on market value at 31 December 2014 were: • UBS Inv Funds ICVC S&P Indx Fund 15% • UBS ETF PLC MSCI UK Soc Res UCITS ETF Fund 7% • Charities Property Fund Income Units (GBP) 5%

12.1 Listed Investments

2014

Market value 1 January

2013

Group

Company

Group

Company

£’000

18,031

17,884

18,478

18,327

Additions

8,668

8,578

8,357

8,350

Disposals

(6,754)

(6,663)

(10,796)

(10,787)

Unrealised loss for the year

(1,516)

(1,517)

1,992

1,994

Listed Investments

18,429

18,282

18,031

17,884

Cash held by Investment Managers

2,624

2,612

3,034

3,028

21,053

20,894

21,065

20,912

15,560

15,420

14,916

14,765

Market value 31 December

Historical cost at 31 December

12.2 Investments in subsidiaries The company controls the following principal active subsidiaries, the results of which have been consolidated. Country of Incorporation

% Holding/ Control

Net Incoming Resources 2014 £’000

Net Assets as at 31 December 2014 £’000

Nature of Business

The Mission to Seafarers DMCCO

UAE

100

(329)

798

Provision of spiritual and practical welfare for all seafarers

The Dunkirk War Memorial Trust Ltd

100

(38)

144

Provision of spiritual and practical welfare for all seafarers

Flying Angel Marketing Enterprises Ltd

100

Sales of promotional goods

The Flying Angel Belfast Ltd

100

Sales of catering services and promotional goods

The Mission to Seafarers Scotland Ltd

100

Provision of spiritual and practical welfare for all seafarers

The Mission to Seafarers Trust Corporation Ltd

100

Holds property as Custodian Trustee on behalf of MtS

Name of Company

The Mission to Seafarers’ Annual Report and Accounts 2014

13. Debtors 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.

Group 2014

2013

2014

2013

£’000

The Flying Angel Belfast Ltd (FAB)

The Dunkirk War Memorial Trust Ltd (DWMT)

Flying Angel Marketing Enterprises Ltd (FAME)

Prepayments and accrued income

561

Other debtors

686

373

176

258

1247

373

838

304

A proportion of legacies receivable may be received after more than one year, but this figure cannot be determined with any accuracy due to the inherent uncertainty in the timing of legacy income receipt. 14. Current liabilities

547

Group

Company

2014

2013

2014

2013

£’000

Trade creditors

100

Social security

Accruals and other creditors

402

771

378

721

Total

565

869

499

818

15. Restricted funds Restricted funds represent capital grants (note 1.4) received together with donations for specific purposes. Transfers to unrestricted funds represent the release for the year of these grants or donations.

Company

Opening Balance £’000 ITF Overseas vehicles grant

Income £’000

Expenditure

Transfer Closing Balance

£’000

(15)

Merchant Navy Welfare Board (Vehicles for use in UK Ports)

115

(48)

Belfast (Property Costs)

491

(6)

(16)

470

Seafarers UK (Port costs)

141

(141)

London Diocesan House

Samaritan Fund (Helping Seafarers affected by disasters)

Others

(24)

Total

638

216

(186)

(64)

604

The Mission to Seafarers’ Annual Report and Accounts 2014

16. Designated funds As part of the continuing review of reserves the Trustees decided to create designated reserves as indicated right. The fixed asset reserves represents the cost value, net of depreciation, of the investment in fixed assets owned by The Mission to Seafarers.

Opening Balance

Income

Expenditure

Transfer

Closing Balance

£’000

Fixed assets

7,000

Branch and subsidiary reserves

6,000

Commitments to retired Chaplains

1,000

Total

14,000

Centres for Seafarers

Humber

Felixstowe

Port of Bristol

Milford Haven

33.30%

Property

33.30%

Other

33.30%

Last published accounts date

31-Dec-13

31-Jan-14

31 Mar-14

31-Dec-13

Net surplus/(deficit) in £’000

(36)

(22)

(4)

Net assets in £’000

635

242

665

108

321

The reserves of the branches and subsidiary companies are held for the purpose of delivering services in the relevant geographical locations. Any Chaplain employed prior to 1983 with a minimum service of 30 years is entitled to be provided with housing for the remainder of their life. There is potentially one more property to be purchased and ongoing maintenance costs. 17. Ecumenical centres Financial details of organisations in which the charity is a joint Trustee and involved in the management are listed to the right. Separate trust agreements which exist between the Trustees to ensure that the properties cannot be disposed of without the agreement of all parties concerned. The net assets to the right 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 need not be, one of the participating societies.

Proportion of controlling influence Proportion of net assets on dissolution:

The Mission to Seafarers’ Annual Report and Accounts 2014

18. Capital commitments At 31 December 2014 the Board had not contracted for any capital expenditure for the Group or company. 19. Financial commitments At 31 December 2014 the Group and Company had annual commitments under non-cancellable operating leases which expire as set out below:

Over 5 years

Land and Buildings 2014

Land and Buildings 2013

£’000

20. Contingent liabilities As explained in note 17, The Mission to Seafarers supports other ecumenical centres. Although these centres operate independently of MtS, there would be certain obligations on MtS if any of them were to run into financial difficulty. The Mission to Seafarers appoints one or more of their Trustees, normally an MtS 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.

The Mission to Seafarers’ Annual Report and Accounts 2014

Trusted to Care for Seafarers in Need The Mission to Seafarers would like to acknowledge the generosity of ITF Seafarers’ Trust, Seafarers UK, The Merchant Navy Welfare Board and all the trusts and foundations that have supported our work in 2014.

Our work would not be possible without the generosity of charitable trusts and foundations. If you are a Trustee, or can help put us in touch with other trusts and foundations then we’d love to hear from you. Please contact Trevor O’Farrell, Trusts and Foundations Manager: Tel: +44 (0)20 7246 2942 Email: Trevor.Ofarrell@missiontoseafarers.org

The Mission to Seafarers St Michael Paternoster Royal College Hill London EC4R 2RL Tel: +44(0)20 7248 5202 Fax: +44 (0)20 7246 4761 Email: info@missiontoseafarers.org themissiontoseafarers @FlyingAngelNews www.justgiving.com/themissiontoseafarers www.missiontoseafarers.org Registered charity no: 1123613

The Mission to Seafarers Trusteesâ&#x20AC;&#x2122; Annual Report and Accounts For the year ended 31 December 2014