Seafarers UK Annual Report 2018

Seafarers UK Trustees’ Annual Report and Accounts For the year ended 31 December 2018

Patron: Her Majesty The Queen President: HRH The Earl of Wessex, KG, GCVO, CD, ADC(P)

Seafarers UK (King George’s Fund for Sailors) is a Registered Charity No. 226446 in England and Wales, incorporated under Royal Charter.

Registered in Scotland, No. SC038191.

Registered Office: Seafarers UK 8 Hatherley Street London, SW1P 2QT

Telephone: 020 7932 0000

Email: seafarers@seafarers.uk Website: www.seafarers.uk

Contents ANNUAL REPORT 2018

Message from the Chairman

Page 4

Introduction from the Director General

Page 4

Objectives and Activities

Page 6

Strategic Plans Page 7 Performance and Achievements

Page 9

Structure, Governance, Management and Risk

Page 14

Reference and Administrative Details

Page 17

Financial Review Page 19 Financial Statements Page 21

Message from the Chairman Vice Admiral Peter Wilkinson CB CVO BA It is always an exciting challenge for the Director General and me to try to complement each other in our introduction to the Annual Report, rather than repeat each other. I will not try, therefore, to dress up his words in another way suffice it to say that, as Trustees, we are thrilled that our focus on fishermen and fishing communities is beginning to make a real difference to these ‘hidden figures’ that exist around the fringes of the UK and sometimes, sadly, on the fringes of our society – we can and need to do better.

Barry’s comprehensive report does allow me the room, however, to focus on his 17 years of service as Director General of firstly, the King George’s Fund for Sailors and latterly, of Seafarers UK. The charity is unrecognisable today when compared to the organisation he joined and, although it is impossible to say how many peoples’ lives have been changed for the better by our interventions, we do know that during Barry’s tenure and stewardship of the charity we have been able to disburse £40m to front-line service delivery organisations and thence to individuals:- to working seafarers;

to their families and dependants in the greatest need; former seafarers who have either retired or been forced ashore through illness or injury and to youth groups educating and enthusing young people about the possibilities of a career at sea. Barry’s work has always been about our beneficiaries – both those who need our help now and in the future.

Barry leaves the charity in good shape to face the challenges of the future: there is always more to do in tightening up our spending and improving our fundraising ratios, but the personnel, administrative and procedural changes he drove through in 2018 have already set us on the right path.

I continue to be hugely grateful to my fellow Trustees for their support and we wish to express our thanks to all the Seafarers UK staff who work so diligently throughout the year. Finally – I speak for us all at Seafarers UK in wishing Commodore Barry Bryant a long, healthy and happy retirement.

Introduction from the Director General Commodore Barry Bryant CVO RN After the excitement of the 2017 Centenary, it might have been expected that 2018 would see smoother waters for Seafarers UK – but not necessarily so! The Strategic Review having confirmed the essential size, shape and viability of our two front-line departments, Grants and Fundraising, it was time to turn attention to the unsung but perhaps equally vital support areas if increased efficiency was to be achieved. To cut a lengthy story short, it was decided to merge the Finance and Executive departments, both now reporting directly to me. Previous Directors Ian Wardle and Robina Whitehorn left us during the year, and thanks are due to both of them for many years of loyal service. The reformed ‘Support’ department, with several new personnel, is working well.

2018 saw a considerable emphasis on our fishing communities, certainly the smallest and long-felt to be perhaps the most neglected within the overall UK maritime scene. Seafarers UK commissioned a nationwide research report by the Cornwall Rural Community Charity, highly experienced in this area, and this confirmed suspected worries about relative poverty, pressure of work leading to a neglect of health and safety, and sometimes seeming official indifference to isolated coastal communities. In short, the consequent Report led to an invaluable series of inclusive meetings including a Forum attended by the Fishing Minister, and downstream grants and projects aimed at specific areas of need. Credit Unions, provision of Flotation Devices, and an ‘Animation’ programme aimed at releasing state and European

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grants make up just some of the recent initiatives. We granted support for our largest ever non-capital grant to GetSeaFit, a wide-ranging two-year health programme (advice, physical, dental, and mental), delivered by our colleagues in the Seafarers Hospital Society and Fishermen’s Mission. We have also been working closely with both Trinity House and the Worshipful Company of Fishmongers, all portraying Seafarers UK’s ability to drive facilitation and coordination, largely led by our Grants team. I hasten to add that the team has not been idle in other areas, with £2.46m in routine grants awarded to 56 organisations.

Fundraising enjoyed record support for our 24 Peaks Challenge while continuing the success of targeted Project Fundraising proven during the Centenary. An ongoing research project and review will seek to improve the efficiency of our Individual Giving programme, while the many nautical companies based in UK have also received more specific attention. I am grateful to the small body of Trustees who have formed the new Fundraising and Campaigning Committee, and I look forward to their advice and experience opening yet more doors for the Fundraising team. The Campaigning function, that used to be undertaken solely to raise the public’s awareness of seafaring and its people has ramped up in the past few years since the 2015 publication of the Maritime Growth Study. Seafarers UK now plays a significant part with Maritime UK, the overarching national body promoting all aspects of the nation’s nautical industries, in promoting the awareness, education and training of potential mariners - one

of our essential charitable objects under our Royal Charter.

Under this aim we have also achieved considerable success with our continued partnership with Sea Cadets, deploying the mobile units of the Marine Engineering Pathway, and we have now confirmed Phase II of that programme starting in 2019.

The Maritime Charities Group and its nine collegiate members continued under Seafarers UK’s chairmanship, considering strategic and cross-sector matters with the ability to deploy total resources where and when necessary and efficient. The Group worked on the outcomes and recommendations of the Navigating Change conference in October 2017, and is planning a follow-up gathering at Trinity House in October 2019.

In summary, I hope you, our supporters, will agree that your charity is in good shape, continuing to work hard at its essential basic functions of raising money and deploying it with optimum effect across our seafaring community. At the same time, we maintain the momentum of our own evolution so as to ensure that we can provide the unique cross-sector coordination services demanded by our Charter. With a sense of regret, this will be my last Annual Report after 17 years on watch, but I’m sure my successor will receive a warm welcome from the whole community when they take over some time in 2019!

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O B J E C T I V E S A N D AC T I V I T I E S

Objectives and Activities Who we are and what we do

Seafarers UK has been helping people in the maritime community for over 100 years by providing vital support

of people from the maritime community, although both the Charter and resolutions made by the Trustees exclude some specific activities. For example, we are unable to support physical memorials, or the various charities and trusts promoting sailing activities for disabled people.

and to those in education or training

We consistently review our activities so we can meet the fundamental aims of the Charter in the light of the changing maritime, defence and social environment of the 21st century. How we do this is described in the following sections of this report.

who are preparing to work or serve at

Providing public benefit

sea. We do this this by giving grants to

Under the Charities Act 2011 there is a requirement for charities to make formal statements in their reports concerning more precisely how their activities fall under one or more of the 13 definitions of providing public benefit. The Trustees of Seafarers UK confirm that they have taken heed of the Charity Commission’s guidance on this matter when reviewing their aims and objectives and in planning future activities.

to seafarers in need and their families,

organisations and projects that make a real difference to people’s lives.

Key aims

Our key aims are to improve the quality of life for seafarers and their families in times of need by securing more efficient aid and support for them, and to ensure

Seafarers UK is actively and positively involved in: •

The prevention and relief of poverty.

•

The advancement of health.

•

The relief of those in need by reason of youth, age, ill-health, disability, financial hardship and other disadvantages.

•

The promotion of the efficiency of the armed forces of the Crown.

the effective distribution of funds to those organisations that help them, so as to assist as many people as possible.

Royal Charter Our governing document is our Royal Charter, first issued in 1920 and last amended in 2010. It describes our Objects as: •

The relief of seafarers, their families or dependants, who are in need.

•

The education and training of people of any age to prepare for work or service at sea.

•

The promotion of efficiency and effectiveness within the maritime charitable sector.

•

The promotion of safety at sea.

All of these are achieved by providing support to organisations established within or occasionally outside the Commonwealth. This allows us to help a wide range

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The charity also has connections to other definitions promoting amateur sport, religion and education, where these relate to nautical welfare. Indeed, we take great pride in having the ability, in principle, to relieve almost every aspect of the human condition, from cradle to grave, and irrespective of race, gender or orientation, so long as the beneficiary has satisfactory links with the UK and Commonwealth maritime community.

S T R AT E G I C P L A N S

Strategic Plans Our Vision Our vision is a proud and respected UK and Commonwealth maritime community, living free of need and social disadvantage.

Our Mission Our mission is based on six key themes:

Sector Efficiency and Effectiveness

1.

In 2019 we will aim to improve sector efficiency and effectiveness through:

Continuing to strengthen our position as ‘the leading charity for the UK’s whole maritime community’.

2. To be a Centre of Excellence for grant-giving, supported by a strong fundraising operation.

3. Providing project management and focus for coordination, cooperation and management of generic services and projects as a member of the Maritime Charities Group (MCG).

4. Promoting maritime education and career opportunities as a Maritime UK Board member and by chairing the national Careers Promotion Forum.

5. Providing a focus for maritime welfare research, linking with the MCG research base and other external data sources.

6. Ensuring a strong pan-maritime link with the Royal Navy & Royal Marines Charity, Confederation of Service Charities (Cobseo), Forces in Mind Trust, Veterans Scotland and other maritime and military sector bodies.

1.

The staff support of the Maritime Charities Group (MCG), building on the previous Navigating Change research, and by developing and holding a further MCG conference for the sector in 2019.

2. The on-going Aged Veterans Fund project, focusing on the often-neglected cadre of Merchant Navy veterans for whom we have long sought proper recognition.

3. Continuing HR and Admin support for selected organisations. We have an enviable reputation for parenting small organisations with a specific focus, either until the task is complete or they develop their own infrastructure 4. Utilising the ‘Fishing for a Future’ research report to influence the scope and design of DEFRA’s research into the social needs of fishermen.

Our strategic goals for 2019:

5. Grants to support the strategic aim of facilitating and encouraging an industry- led campaign to support the recruitment of new entrants into the UK fishing industries.

Grant-making

Campaigning & Influence

Through our grant-making during 2019 we will:

We will campaign on behalf of the maritime community in 2019 with an aim to:

1.

Create an influential £2m plus funding cycle by funding organisations to support the individual needs of seafarers and better utilising evidence of need to influence the wider maritime sector for the benefit of all seafarers.

2. Ensure that our grant-funding principles are well communicated to beneficiaries and embedded in all Seafarers UK grant-making processes, practices and communications.

3. Take forward and fund evidence-based solutions that have emerged from the Fishing for a Future research report.

4. Continue to work on the recommendations made in the Directory of Social Change Strategic Review of our grant-making to improve our relationship management of grant applicants and recipients through enhanced communication and pro-active support for strengthening the outcomes and impact achieved.

1.

Develop and build stronger relationships with Government and industry in order to support the welfare needs of seafarers; and to explore the possibility of opening up new sources of funding.

2. Campaign and influence the approach by Government, the industry and funders to the welfare and safety of fishermen through supporting the development of a long term strategy for fishermen and their communities.

3. Make recommendations to Maritime UK for activities that effectively promote the whole range of maritime and marine employment opportunities for young men and women, with an emphasis on seafaring roles.

4. Raise public awareness of the vital need to support the UK’s fishermen and their coastal communities through our annual Seafarers Awareness Week campaign.

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S T R AT E G I C P L A N S

5. Increase year-on-year levels of participation and media coverage through our ‘Fly the Red Ensign for Merchant Navy Day’ campaign, to help raise public awareness of the UK’s ongoing dependence on Merchant Navy seafarers.

Fundraising & Communications

Governance & Administration In 2019 we will: 1.

Ensure the skills and experience-based General Council operates at maximum effectiveness so as to be fully compliant with governance best practice.

In 2019, through fundraising and marketing communications work, we will:

2. Examine the benefits of closer working with other organisations, and take forward such activity.

1.

3. Retain, enhance and motivate an appropriately skilled and the NCVO Trusted Charity-assured (formerly PQASSO) staff able to support continuous improvement, internal progression, personal development and supply external services.

Review our Individual Giving programme and develop a more targeted, evidence-based strategy for income growth. This will include detailed data insight work and analysis and the use of test Direct Marketing campaigns to identify the potential for acquiring new donors.

2. Explore new funding partnership opportunities, and launch Phase II of the Marine Engineering Pathway programme in partnership with the Marine Society & Sea Cadets.

3. Build further on the engagement work with the commercial shipping industry and the corporate sector as a whole, seeking increased support from companies and employees including via means of a new payroll-giving programme.

4. Continue to promote and grow the Merchant Navy Fund in partnership with the Merchant Navy Welfare Board, creating stronger links with our awareness-raising work.

5. Develop a more integrated communications and digital strategy that supports the charity’s strategic objectives and provides an effective feedback loop into our fundraising and campaigning work.

6. Seek to gain increased insight into our supporters and donors (existing and potential) by improving our use of data reporting and targeting, and by ensuring a clean transition to an upgraded version of the Raiser’s Edge database.

7. Strengthen our Legacy marketing programme by means of offering free Will writing services (online and offline), and building increased links with regional solicitors’ groups and other local organisations.

8. Seek out and encourage new partnership and collaboration opportunities with and between other maritime charities where fundraising and profile-raising is concerned.

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4. Continue to support, manage and produce the Annual National Service for Seafarers (ANSS), working closely with ANSS Trustees.

5. Update and embed our organisational policies and Risk Register so as to support greater diversity, equality and inclusion into staff and Trustee recruitment, training and promotion procedures.

6. Conduct a Board of Trustees Skills/Experience/ Diversity Audit (invisible and visible).

P E R F O R M A N C E A N D AC H I E V E M E N T S

Performance and Achievements We set out a number of Strategic Objectives for 2018 in the 2017 Annual Report, and the following is a report on how we performed against those key aims.

Grant-making 1. Use the findings from the Directory of Social Change (DSC) research to develop our grant-making strategy.

Through continuously improving grant processes, Seafarers UK is working towards ensuring our grant-making is supportive, reflective of need, and proportionate for all applicants. The DSC findings have proven to be fundamental to this development.

The Chairman of the Grants Committee presented her recommended response to the findings at July 2018’s General Council. These actions were agreed and will continue to be addressed.

2. Establish priority funding streams to ensure the greatest impact of funding.

Grants Funding Principles were developed and are now woven into our assessment and scoring processes. They were used to guide decision making at each Grants Committee in 2018 and will be further embedded, and communicated, in 2019.

3. Use the Fishing for a Future research to develop an evidence base which will inform our funding priorities for the welfare needs of the fishing sector.

This important research has been at the centre of, and informed our approach to, evidence-based grant-making to support the UK fishing fleet. In 2018 it has enabled a significant increase in our proportion of grant funding to the Fishing Fleet from 20% in 2017 to 40% in 2018.

4. Follow up the recommendation of the Maritime Charities Group’s (MCG) research in respect of supporting beneficiaries to develop a sector-wide approach to impact measurement.

The MCG ensured that Impact Measurement was the primary focus of their July 2018 meeting and a presentation was made, followed by discussion on the work needed, to forward this work. Further to this an Impact Working Sub-Group was established and a draft set of common funding principles drawn up. Further work is due on this topic in 2019.

Sector Efficiency and Effectiveness 1. Use the recently published ‘Navigating Change’ research report by the MCG to guide our own further work on social priorities within our sector, and advise partner organisations on the same.

Our grants work actively uses this research in order to ensure our grants are reflective of need. In addition, all the key solutions are being worked into our assessments, e.g. applicant charities’ reserves policies, imbalance in sector support, key areas for future support etc.

2. Continue to provide Human Resources and Administration support to selected partner organisations.

We continued our traditional HR, Admin and budgetary support for selected smaller organisations. Seavision’s work has now been absorbed into Maritime UK, Cobseo will shortly transfer to the auspices of the Officers’ Association, the Armed Forces Covenant Fund Trust continues to develop its independence, while the Annual National Seafarers Service and Maritime Charities Group remain under our wing.

3. Use our resources in promoting and organising the Annual National Service for Seafarers.

We delivered another memorable service in 2018 attracting attendees from all areas of the maritime community, from across the UK. We continue to engage successfully with existing supporters whilst striving to appeal to new groups to ensure the success of the service in years to come.

4. Provide focused support for MN Veterans by working with the Aged Veterans Fund to identify and provide for this unsung cadre.

This multi-faceted project continued to provide evidence on the size, shape and needs of elderly (68+) MN veterans and their families as well as the now completed physical construction of targeted accommodation at Mariners Park on the Wirral.

5. Build on the inaugural ‘UK Fishing Forum’ and help to coordinate a joint stakeholder approach to fishing community need.

A key event was held in June 2018 at Fishmongers’ Hall, with senior sector representation, for the final report of Fishing for a Future - launched by George Eustice MP. Further collaborative funding partnerships have since been developed in order to support the needs of the fishing sector.

6. Further the acceptance of a common Grants Application Form and process within the MCG to assist in optimising the use of total sector resources.

The technical development of the application form was successfully completed, and online, but it

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P E R F O R M A N C E A N D AC H I E V E M E N T S

was decided that more focus was needed around optimisation of sector resource. Grant funding principles, across all funders, have been drawn up.

Campaigning & Influence 1. Deliver our annual Seafarers Awareness Week campaign, partnering with the government’s Year of Engineering, focusing on career opportunities at sea and ashore.

We further developed our maritime career and jobs-focused annual awareness campaign in 2018 and achieved our highest level of broadcast media coverage to date.

2. Increase the number of Local Authorities, historic buildings and other organisations taking part in our ‘Fly The Red Ensign for Merchant Navy Day’ campaign.

The decision to create a new ‘guide to taking part’ and to mail printed copies to every council and local authority throughout the UK paid dividends. Over 800 flag-flying locations were officially listed on our ‘Roll of Honour’ on the Merchant Navy Fund website.

3. Work with Maritime UK, the Maritime Skills Alliance, the UK Chamber of Shipping, Trade Unions and others in an on-going campaign for greater awareness and appreciation of seafarers and their needs.

Seafarers UK continues to work closely with the likes of Maritime UK, Maritime Skills Alliance, Nautilus, Merchant Navy Training Board, the UK Chamber of Shipping and others on an on-going basis.

During 2018 this engagement and influencing was increased via the medium of the Maritime UK Careers Promotion Forum, chaired by Seafarers UK. 4. Direct the Maritime UK Careers Promotion Forum’s programme of work in campaigning for greater maritime awareness and career opportunities.

The Forum, chaired by Seafarers UK, met several times during 2018 to discuss new opportunities to promote maritime careers to young people, their parents, teachers and careers advisers. The Forum functions in an advisory capacity, making recommendations to the Maritime UK staff. A number of Careers Fairs and Skills Shows were attended by Maritime UK with partner organisations, and more opportunities are being planned for 2019. The Maritime UK website was also developed during the year to provide a greater level of information and detail on maritime career options.

Fundraising & Marketing 1. Launch a new fundraising appeal in support of seafarers’ dependants and their families.

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The ‘Family Appeal’ was launched at the start of 2018 and since then we have received £56,142 in donations.

This was achieved across the following channels and mechanisms: online donations for the appeal; an ask to existing supporters in the Spring; Trust donations, and a mailing to existing supporters at Christmas.

2. Engage more deeply with the commercial shipping sector and corporates in seeking increased support from both companies and employees.

We gained an increased uptake by companies in this year’s 24 Peaks (25 teams); significantly increased our networking and attendance at industry events; pitched to a number of new companies, and signed a contract with two Payroll-Giving agencies to start in 2019.

3. Enhance our focus on the use of digital and social media in reaching out to new supporters.

Not including our campaigning channels, in 2018 we reached out further and wider than ever before through our social media and digital channels. This included a total of 972,500 impressions on Twitter (191,600 more than 2017) with an average of 104 new followers per month. We also engaged with 50,178 people in 2018 via Facebook with total impressions of 688,873. We had 34,551 new visitors to our website with 213 ‘donate’ clicks (169 in 2017). Other channels including YouTube, Instagram and Linked-In all showed similar year-on-year increases.

4. Further develop our Project Fundraising work in linking donors directly with projects, particularly for our ongoing MEP partnership, but also by building on our research findings into fishing communities’ needs.

The MEP (Marine Engineering Pathway) partnership project with Sea Cadets has continued to build its capacity, reach, reputation and outcomes as well as being a strong source of donations. Trustees sanctioned a further 3-year extension to the project at the end of 2018, taking the project through to end-March 2022.

This will hopefully enable the charity to pursue some larger funding support going forward. On the Fishing side, various projects are still being developed. A major funding commitment to the ‘SeaFit’ programme, in conjunction with Fishermen’s Mission and Seafarers Hospital Society, may provide some new opportunities.

5. Review our channels and policies where supporter communications are concerned, reducing costs where possible and ensuring compliance, e.g. with General Data Protection Regulation (GDPR).

We carried out an extensive GDPR exercise in early 2018 with existing supporters where email and phone communication were concerned. We also updated the wording on all our sign-up and donation forms to enable supporters to provide a clear and unambiguous statement of consent where receiving

P E R F O R M A N C E A N D AC H I E V E M E N T S

on-going communications is concerned. As part of this process we reviewed our data privacy policy, developing a clearer approach to archiving individual contacts after a set number of years of no interaction.

6. Continue to promote and grow the Merchant Navy Fund in partnership with the Merchant Navy Welfare Board.

During 2018 we successfully attracted £106,779 in donations for the Merchant Navy Fund (MNF). We also reviewed and updated our marketing plan, inc. the provision of new collecting tins with an updated monitoring process. The 2018 ‘Fly The Red Ensign’ campaign also included an informal suggestion to event organisers to collect donations for the MNF, and this will be developed further for 2019.

7. Begin to build our programme of challenge events, using it to engage more deeply with the corporate sector and individual fundraisers in seeking to grow income levels.

We successfully used this year’s 24 Peaks event to secure and then engage with 25 teams, whilst Ride 100 also moved up a gear in terms of the number of fundraisers participating. The London Marathon had another good year and we also signed up to a new Challenge Events membership scheme for 2019 - where individuals can choose to participate in all sorts of different thirdparty challenge events (with the charity only being charged a fee as and when an individual signs up).

and keep abreast of charity regulations.

Two new Trustees were welcomed to the board during 2018 and officially appointed at the 2018 Annual Meeting. The Charity maintained a high standard of governance and, with the guidance of the Cobseo ‘Governance Practices Aide Memoire’ and ‘Selfreporting Governance Tool’, we intend to continue in this vein during 2019. One consequent action will be to undertake a review of our current board composition and recommend any longer-term improvements.

3. Examine in principle any possible beneficiary benefits and operating efficiencies inherent in closer working with any other organisation, and take forward such activity if deemed appropriate by Trustees.

The charity continues to be very open to the idea of closer working, collaboration or partnership with any organisation where it can create the opportunity to release more money for beneficiaries. Informal and exploratory talks continue in several areas An Overview of Grant-making in 2018 In 2018 Seafarers UK awarded 76 grants worth £2.46m to 56 organisations to fund the front-line delivery of services to seafarers. Seafarers UK’s grant funding helps to ensure that bespoke specialist services for seafarers are developed and maintained by organisations providing support for seafarers in need, in transition and in their careers.

Governance & Administration 1. Recruit and retain a motivated, appropriately skilled and Trusted Charity-assured staff and administrative structure, able to support continuous improvement, internal progression, personal development and the supply of external services. Continue to provide an excellent financial administration service both internally and externally.

Following the 2017 Strategic Review a number of internal improvements were introduced during 2018.

We combined our Executive and Finance departments to form one Support team enabling us to provide a more streamlined and collaborative service both to all stakeholders. During 2018, the charity also fulfilled its HR and Health and Safety legislative obligations and there have been no major issues in either area.

A continual review of our more routine processes and practices is in place as we maintain our NCVO Trusted Charity (previously PQASSO) accreditation.

2. Ensure a fully compliant and coherent governance and external reporting structure. Ensure the skills and experience-based General Council operates at maximum effectiveness and in accordance with best practice, with members advising the Chairman on the execution in their specific areas of expertise, and providing Trustees with the opportunity to enhance skills

Seafarers UK’s Grants Team strives to be a centre of excellence for grant-making. Through continuously improving our processes we aim to ensure our grant-making is supportive, reflective of need, and proportionate for all grant applicants; both those we have supported for a number of years and new applicants applying for funding for the first time.

Our ongoing approach to monitoring and evaluation enables Seafarers UK’s Grants team to learn what works, and informs our approach to achieving the greatest impact - whether this is for the on-going delivery of bespoke services for seafarers or the innovation of new services. Ultimately we aim to support a broad range of existing and emerging needs of those aspiring to join, currently working in, and leaving the maritime sector.

Funding Services for Seafarers The majority of Seafarers UK’s annual grant funding support is now provided to support the core costs of specialist services delivered by organisations for seafarers and their families. This shift in the type of funding awarded has occurred as a direct result of feedback sought through an external survey of our grant making by the Directory of Social Change. Many of the organisations receiving grant funding from us have a long history of delivering services to seafarers and they articulated, via either an online survey, a telephone interview or via a focus group, that the funding they most need is unrestricted to help them to maintain, develop and enhance their services for seafarers.

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P E R F O R M A N C E A N D AC H I E V E M E N T S

Our commitment for services to seafarers includes funding port based welfare services for active seafarers away from home, accommodation for retired seafarers settling ashore and advice or welfare support services for seafarers and their families who are in need of help and support. With such a significant focus on maintaining services for seafarers, it is no surprise that 43% (2017: 56%) of Seafarers UK’s grant funding supported services specifically aimed at those seafarers currently in, or retired from, the Merchant Navy.

In 2018 Seafarers UK was able to continue to support charities that provide help, support and advice to seafarers aboard ships who do not have the opportunity to come ashore. Once again Seafarers UK joint-funded the Port Vehicle Replacement Programme which helps to provide and replace transportation for seafarers from their ship to the port, or local facilities, and back again. Another example of shared and collaborative funded services that support seafarers was the international telephone advice and information service provided by the International Seafarers Welfare Assistance Network (ISWAN).

This year Seafarers UK was also able to award grants to support seafarers’ centres, or outreach services, at a variety of coastal ports including Tilbury, Great Yarmouth, Humber, Sunderland, South Shields, Troon, Peterhead and Greenock.

Change of Strategic Direction 2018 was the first year the Grants Team implemented in full the recommendations made by a Trustee led Strategic Review Team. Following on from findings and recommendations made in the 2017 Navigating Change research, carried out by the Maritime Charities Group, Seafarers UK implemented plans to target grant funding on sections of the maritime community which have the least access to funding from other sources. Consequently, our level of support for the Merchant Navy and Fishing Fleets has increased, and our support for the Royal Navy has fallen from 10% in 2017 to just 5% of the total amount awarded in grants in 2018.

Since its launch, this important research has been at the centre of, and informed our approach to, evidence based grantmaking to support the UK fishing fleet. During 2018 Seafarers UK supported 16 new organisations with grant funding for the first time – many of which are supporting fishermen.

Learning from our Fishing for a Future research, Seafarers UK was able to significantly increase our proportion of grant funding to the Fishing Fleet from 20% in 2017 to 40% in 2018.

Seafarers UK was able to award grants to co-fund European Maritime Fisheries Fund grant awards to organisations such as the Anglo Scottish Fishermen’s Association Benevolent & Provident Fund and the Galloway Static Gear Fisherman’s Association for essential safety equipment for fishermen such as personal flotation devices and personal locator beacons. During 2018, extensive work and communication with the Welsh Government led to them awarding a grant to Seafish (Seafish Industry Authority) which was matched by our own grant to provide the Welsh fishing fleet with personal safety equipment supported with behavioural culture training in respect of personal safety. To date over 600 fishermen have been supported all around the coast.

Fishermen in Orkney, Eastbourne and Whitehaven also benefited from Seafarers UK’s grant funding investment for the first time in order to develop and improve their working, storage and relaxation facilities. Each grant request was in response to the unique working conditions at each harbour and will make a big impact on the fishermen working there.

Grant requests ranged from a new and much needed central heating system at the Whitehaven Fishermen’s Co-operative’s office to supporting larger European Maritime Fisheries Fund match-funded building projects in Orkney (Orkney Fisheries Association) and Eastbourne (Eastbourne Fishermen’s CIC).

In addition, the Cardigan Bay Fishermen’s Association, who had previously received a Seafarers UK grant in 2017 to fund a feasibility project - looking at the renovation of the former Aberystwyth Boat Club into a multi-purpose building for Cardigan Bay fishermen - received a second grant to enable them to move on to phase 2 of their renovation project in 2018.

Evidence Based Grant-making Influencing Service Development In taking forward our strategy to target grant funding on areas of previously unmet need we realised we needed to better evidence the needs of seafarers within the UK fishing fleet.

To ensure our future funding was well targeted, impactful and evidence based we commissioned research to look at the health, welfare and safety needs of fishermen and their fishing communities in the UK. The research report Fishing for a Future was cited by many as one of the first reviews of the social and welfare needs of the UK’s fishing fleet, and was launched at an event attended by many of the most senior and influential leaders and representatives in the UK fishing industries, alongside representatives from many maritime welfare charities serving fishermen.

We were privileged to have the then UK Fishing Minister, George Eustice, MP, address the audience and provide an update on Brexit negotiations and the Government’s plans for consultation on a new Fisheries White Paper.

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It wasn’t just new organisations that benefited from the research findings within Fishing for a Future. Long term beneficiaries of Seafarers UK’s grants were inspired to develop new services for seafarers which were responsive to the newly identified, and previously unmet, needs of seafaring fishermen. The Fishermen’s Mission and Seafarers Hospital Society, for example, were quick to take up the findings of the research and developed a partnership to deliver a series of health and wellbeing interventions for fishermen from facilities at nearby quaysides around the UK. Seafarers UK as the funding partner has pledged support of over £700,000 for this innovative project, which it is anticipated can support real long-term change in the health and wellbeing of our fishermen, as well as enabling them to continue their careers at sea in the face of new health regulations. This grant award is the largest non-capital grant ever made by Seafarers UK and demonstrates a high-level of trust between all partners involved in this project.

P E R F O R M A N C E A N D AC H I E V E M E N T S

Another innovative new service for seafarers was developed by a new beneficiary in direct response to recommendations in the Fishing for a Future research. A team at Cornwall Community Development Limited had led Seafarers UK’s funded research project through 2017-18. They were therefore well positioned to respond to a key need and recommendation highlighted within the research – to establish a UK wide programme of animation to support fishermen to access funding support, particularly through the European Maritime Fisheries Fund (EMFF), to improve the safety of their vessels and enhance their business.

To respond to this newly identified need, Seafarers UK formed a partnership with the Worshipful Company of Fishmongers and Trinity House to grant fund a UK wide team of animateurs to support the UK’s fishermen to access other sources of funding. To date this project has had enquiries from 500 fishermen and has made 82 grant applications with a total project value of £2m million which has enabled £1.75m of matched EMFF grant support. Seafarers UK also supports the embryonic development of new services for seafarers. Since 2014 Seafarers UK has supported Human Rights at Sea, an organisation which has been able to shine a light on the hardships suffered by some seafarers and actively campaigned to improve human rights at sea.

Influencing the Seafaring Environment for the Benefit of Seafarers

the annual London Lord Mayor’s Show with a 12ft seafarer puppet, courtesy of the Port of Tilbury, followed by around 40 representatives of QVSR making up a flotilla of ships.

Looking Forward to 2019 Going forward, Seafarers UK’s Grants Team will embed our funding principles and will endeavour to ensure that our grant-making continues to support and engage seafarers through evidence based grant-making that achieves a maximum impact for the lives of seafarers.

During 2018, extensive work and communication with the Welsh Government led to them awarding a grant to Seafish (Seafish Industry Authority) which was matched by our own grant to provide the Welsh fishing fleet with personal safety equipment supported with behavioural culture training in respect of personal safety.

To date over 600 fishermen have been supported all around the coast.

An unforeseen consequence of the Fishing for a Future research has been the impact it has had in respect of awakening and influencing DEFRA’s interest in the social needs of the fishing community and in promoting a renewed focus on the safety of fishermen. In addition to informing our response to DEFRA’s Fisheries White Paper, evidence from the research was also used to respond to a House of Lords enquiry into Coastal Communities, and will be used further in 2019 to inform briefings during the House of Lords debate on the Second Reading of the Fisheries Bill.

Seafarers UK will continue to use evidence obtained from grant requests to identify emerging issues for seafarers and attempt to find methods to raise such issues to influence the policy environment for the broader benefit of all seafarers.

An Older Grant Beneficiary – Celebrating 175 years of supportive services for seafarers This year we were delighted to support Queen Victoria Seamen’s Rest’s (QVSR) 175th anniversary with four different grant awards. As in previous years, Seafarers UK provided grant funding towards the core costs of accommodation for active and retired seafarers in East London. Since QVSR took over the seafarers centre at London Tilbury in 2016, Seafarers UK has contributed to the core costs of funding improvements.

This year, we were also able to provide a small amount of grant funding to help QVSR to complete their extension and refurbishment of a new outdoor area at London Tilbury port where seafarers can relax and enjoy various sports activities. Another small grant directly supported QVSR’s anniversary year celebrations during their participation in

A n n u a l Re p o r t 20 1 8 1 3

S T R U C T U R E , G OV E R N A N C E , M A N AG E M E N T & R I S K

Structure, Governance, Management & Risk Legal Structure Seafarers UK is a non-statutory body incorporated by Royal Charter. The Charter was originally granted in 1920 and, together with the Byelaws, provides the rules and guidelines under which Seafarers UK operates.

After approval by the Privy Council, Supplemental Charters were granted in 1949, 1960, 1976, 1992 and 2010. The latest amendments to the Charter and Byelaws were approved by the Privy Council in 2010.

The Trustees are members of the General Council, which is the ultimate governing body. The General Council sets policy and is responsible for the conduct of Seafarers UK’s affairs and for ensuring that the charity operates formally in accordance with the Royal Charter, the Byelaws and the law, as well as observing recognised best practice in all functional areas.

Organisational Structure and Operation The General Council, which meets three times a year, has a formal schedule of matters specifically reserved to it for decisions. It has delegated authority to the following main Committees of Council Members which meet regularly during the year: •

Audit and Governance

•

Finance and Investment

•

Grants

•

Fundraising & Campaigns

Members of these Committees are shown on page 17.

Committee Chairs, supported by the relevant Executive staff, report on Committee activities to each General Council meeting. The Chairman of the Council also convenes informal groups of Trustees as required to discuss specialist matters.

The Council has overall responsibility for Seafarers UK’s system of internal control and has an organisational structure with clearly defined lines of responsibility and delegation of authority. Information and reporting systems are in place for monitoring Seafarers UK’s activities and performance. The Audit and Governance Committee reviews the effectiveness of Seafarers UK’s internal control procedures and receives regular reports from management and the external auditors.

The Council believes that Seafarers UK’s system of internal control provides reasonable, but not absolute, assurance that assets are safeguarded, transactions are authorised and properly recorded, and that material errors and irregularities are either prevented or would be detected within a timely period.

1 4 S e a f a re r s U K

Seafarers UK’s strategy to achieve its purposes is set out in an annual Buisness Plan, aspects of which are reviewed regularly by standing committees throughout the year, with the overall Plan updated for the following year and approved by the General Council each December.

Appointment of Trustees New Trustees are co-opted as necessary during the year by the General Council and, subject to the approval of the membership of the Corporation there present, are formally elected for a five-year term of office at the next Annual Meeting. They may subsequently serve one further term of five years.

Training of Trustees Following co-option to the Council, each new Trustee is provided with an induction programme covering both their generic and specific responsibilities and the entire spectrum of Seafarers UK’s business. Trustees also receive regular briefings on any emerging legislation affecting charities at their four-monthly meetings, along with the offer of opportunities to attend specialist training courses.

Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements Under the Royal Charter and Byelaws of the charity and charity law, the Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The Trustees have elected to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the excess of expenditure over income for that period.

In preparing these financial statements, generally accepted accounting practice entails that the Trustees: •

select suitable accounting policies and then apply them consistently;

•

make judgements and estimates that are reasonable and prudent;

•

state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;

S T R U C T U R E , G OV E R N A N C E , M A N AG E M E N T & R I S K

•

•

assess the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and use the going concern basis of accounting unless they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

The Trustees are required to act in accordance with the Royal Charter and the Byelaws of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the Trustees to ensure that, where any statements of accounts are prepared by them under the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005, those statements of accounts comply with the requirements of regulations under those Acts. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.

Each Trustee accepts that: •

•

insofar as he or she is aware, there is no relevant audit information of which the Trust’s auditors are unaware; and that he or she has taken all the steps that a Trustee should have taken in order to make him or herself aware of any relevant audit information and to establish that the Fund’s auditors are aware of that information.

Seafarers UK Remuneration Policy Seafarers UK Trustees meet annually to discuss and review the remuneration for all staff. The charity is committed to ensuring that we pay our staff fairly and in a way which ensures we attract and retain the right skills to have the greatest impact in delivering our charitable objectives.

If the above aim is to be attained, the overall salary structure needs to be subjected to external review, and the latest iteration of this process commenced in late 2018 using specialists from Croners, acknowledged experts in this field. Early results suggest that present remuneration is, in the vast majority of cases, very close to the recommended level. Nonetheless, the General Council will be asked to approve adjustments during 2019 to ensure fair treatment.

Anyone receiving more than the recommended level will have salary frozen until inflation removes the differential.

Future policy will normally see recruits accepted at the lower quartile for any particular post, advancing to the median (reccommended) level

after three years’ satisfactory performance.

Temporary interns may be employed, but at a fair rate of pay.

In accordance with the SORP (Statement of Recommended Practice), Seafarers UK: • discloses all payments made to Trustees (N.B. no Trustees receive ‘pay’) • discloses the number of staff in receipt of remuneration of more than £60,000 (in bands of £10,000). This figure includes gross pay and National Insurance Contributions • discloses the policy for pensions and other staff benefits Trustees’ main responsibilities in relation to remuneration are to: •

• •

•

• •

review the Seafarers UK salary structure against an agreed independent market benchmarking tool (as above) and make amendments as appropriate to ensure that Seafarers UK salaries remain competitive determine the remuneration package of the Director General approve the annual percentage (cost of living) increase in the payroll for all staff (which can be zero) taking into account the most recent inflation figures approve any consolidated pay awards and staff salary increases outside the annual review process as recommended from time to time by the Director General determine pension arrangements, and ensure that contractual terms on termination are fair to the individual and the charity, that poor performance is not rewarded, and a duty to mitigate loss is recognised

Delivery of Seafarers UK’s charitable vision and objectives is primarily dependent on our staff which, apart from Grants, reflect the largest single element of expenditure. At the beginning of 2018 Seafarers UK awarded all staff a 2% uplift in salary.

Control of risk Seafarers UK takes a pro-active approach to Risk Management with the view that active management of certain risks will have a positive overall effect on the organisation and its reputation. The Senior Management Team (SMT) uses the approach endorsed by the National Council for Voluntary Organisations (NCVO). Essentially, this requires a more holistic appreciation of the many factors surrounding each individually identified risk - some of which may not be in the control of the Charity’s staff - and, where possible informs subsequent considered management of that risk in the best interests of the Charity.

Trustees and the SMT appreciate this philosophy and understand that Risk Management, across all activity A n n u a l Re p o r t 20 1 8 1 5

S T R U C T U R E , G OV E R N A N C E , M A N AG E M E N T & R I S K

areas, should be an integral part of planning processes and performance monitoring. At all times, Trustees must be satisfied that there are sufficient controls and processes in place to ensure that the key risks identified are being either mitigated or managed effectively. The Audit and Governance Committee reviews the Risk Register twice-yearly, and high-level risks are subsequently referred to the General Council for their evaluation.

Seafarers UK believes that Risk Management is not about eliminating or fully controlling all or individual risks, but a management tool whereby Seafarers UK seeks to become a risk enabled and responsive organisation, reacting positively and meaningfully to opportunities, innovation and change.

On the basis of their recent assessment across a wide range of activity, the Trustees consider the areas presently requiring

1 6  S e a f a re r s U K

closest attention as: Reputational Risk and Staff Succession and Resource Planning. Reputation can be adversely affected by a multiplicity of factors, from financial irregularity to Data Protection issues. The focus on Staff Resource arises from the planned retirement of our long-standing Director General; there is thus a requirement to manage change positively and constructively in order that Seafarers UK may take forward and build on the very best knowledge and expertise as the bedrock of a mature and progressive organisation.

The Trustees believe that the controls and staff actions being implemented at this time provide a strong mitigating effect in both these and other areas where Risk has been assessed. They remain firmly of the view, however, that it is the responsibility of the Management team to undertake continuous review, and to ensure that Council is fully informed.

R E F E R E N C E A N D A D M I N I S T R AT I V E D E TA I L S

Reference and Administrative Details Name and registered office Seafarers UK (King George’s Fund for Sailors) is a registered charity, number 226446, in England and Wales, incorporated under Royal Charter, and registered in Scotland under number SC038191. The registered office is 8 Hatherley Street, London, SW1P 2QT. Seaservers Limited is a wholly-owned subsidiary of the Charity through which Seaview Magazine is published and sponsorships and commercial events are operated.

The Officers of Seafarers UK •

Mr P. Tomlin (G)

Members of the General Council President: HRH The Earl of Wessex KG GCVO CD ADC(P) Chairman: Vice Admiral P. J. Wilkinson CB CVO BA Deputy Chairman: Captain R. H. Barker FNI MNM (G) •

Mr D. Bain FCA (*Fi)

•

Mr P. Butterworth (A) (*Fr)

•

Surgeon Commodore P. J. Buxton OBE QHP RN (*G)(Chairman wef 6 December 2018)

Key to General Council sub-committee membership: Fi Member of the Finance and Investment Committee G Member of the Grants Committee A Member of the Audit and Governance Committee Fr Member of the Fundraising and Campaigns Committee * Chairman of Committee Management •

Director General: Commodore Barry Bryant CVO FCIPD RN

•

Grants Director: Deborah Layde

•

Director of Fundraising & Communications: Nigel Shattock

•

Head of Finance: Indira K Ondhia FCCA

•

Head of Internal Operations: Cheryl Gallop

•

Executive Director: Robina Whitehorn (retired October 2018)

•

Finance Director: Ian Wardle (left June 2018)

•

Mr M. Carden (G)

•

Mr M. Dickinson (G)

•

Mr P. French (Fr) (appointed 22 May 2018)

•

Mrs C. Gould (*G) (stood down as Chairman 6 December 2018)

•

Mr R. Greenwood (G)

•

Mr G. Kidd (A)

•

Mr W. Lawes (Fi) (Fr)

•

The Lord Mountevans (A)

•

Mr C. Marr (G)

•

Mr J. J. Monroe (*A)

•

Mr W. Reid (Fi) (appointed 22 May 2018)

Having written to all affected VPs, they understood our stance and stepped down as VPs on 31 October 2018.

•

Mr S. Rivett-Carnac (Fi) (resigned 22 May 2018)

Vice Presidents

•

Ms N. Shaw FCIPD (Fi)

•

The Chaplain of The Fleet

•

Ms D. Sterling (G) (Fr)

•

Admiral of the Fleet Sir Benjamin Bathurst GCB DL

•

Mrs E. A. Strouts (G) (Fr)

•

Admiral Sir Jock Slater GCB LVO DL

The Charity has examined carefully its structure and how it serves our objectives in the most business like way, and where possible we have resolved to remove as much bureaucracy as possible. In the current trends within fundraising and community liaison the charity resolved to reduce the number of Vice Presidents whilst still keeping our ties with specific ex officio roles in London and Individual VPs, but removing civic and religious roles from across the country.

A n n u a l Re p o r t 20 1 8 1 7

R E F E R E N C E A N D A D M I N I S T R AT I V E D E TA I L S

Vice Presidents (continued) •

Admiral Sir Brian Brown KCB CBE

•

Vice Admiral Sir Donald Gosling KCVO RNR

•

Sir Ian Denholm CBE JP DL (deceased May 2018)

•

Sir John Ritblat FRICS

•

F. M. Everard CBE

•

Captain D. C. Glass OBE MNM

•

Rt Rev & Rt Hon Dame Sarah Mullally DBE

•

The Rt. Hon. The Lord Mayor of the City of London

•

The Rt. Worshipful The Lord Mayor of Westminster

•

The Most Rev. & Rt. Hon. The Lord Archbishop of Canterbury (ceased 31 October 2018)

•

His Eminence The Cardinal Archbishop of Westminster (ceased 31 October 2018)

•

The Chief Rabbi of The United Hebrew Congregations (ceased 31 October 2018)

•

The Rt. Rev. The Moderator of The General Assembly of the Church of Scotland (ceased 31 October 2018)

•

The Rt. Rev. & Rt. Hon. The Bishop of London (ceased 31 October 2018)

•

The Rt. Rev. The Bishop of Sodor and Man (ceased 31 October 2018)

•

The President of The Methodist Conference (ceased 31 October 2018)

•

The Vice President of The Baptist Union of Great Britain (ceased 31 October 2018)

•

The Moderator of The General Assembly of The United Reformed Church (ceased 31 October 2018)

•

The Rt. Hon. The Lords Mayor of the City of Cardiff and Bristol (ceased 31 October 2018)

•

The Rt. Hon. The Lords Provost of the Cities of Edinburgh and Glasgow (ceased 31 October 2018)

•

The Lords Provost of Aberdeen and Dundee (ceased 31 October 2018)

•

The Rt. Worshipful The Lords Mayor of Birmingham, Coventry, Kingston upon Hull, Liverpool, Manchester, Newcastle, Nottingham, Oxford, Plymouth, Portsmouth, and Swansea (ceased 31 October 2018)

•

The Rt. Worshipful The Mayor of Southampton (ceased 31 October 2018) Bankers Auditors National Westminster Bank plc KPMG LLP 280 Bishopsgate 15 Canada Square London, EC2M 4RB London, E14 5GL

Investment Managers Ruffer LLP 80 Victoria Street London, SW1E 5JL

1 8 S e a f a re r s U K

Veritas Investment Management LLP 90 Long Acre London, WC2 9RA

UBS AG - Wealth Management Division 5 Broadgate London, EC2M 2AN

FINANCIAL REVIEW

Financial Review The financial statements are presented in the standard format required by The Charities Act 2011 and the Trustees have elected to prepare the financial statements in accordance with SORP FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland. The Statement of Financial Activities (SOFA) shows the gross income from all sources and the split of activity between restricted and unrestricted funds.

Overview It can be seen from the Statement of Financial Review SOFA on page 21 that Income for 2018 is £3,166k, compared with £4,139k for 2017 a decrease of 23.5%, primarily due to a grant award from the Aged Veterans Fund in 2017 amounting to £944K. Total expenditure in 2018 is £4,675k compared to £5,639k in 2017 a reduction of 17.1% as last year the Aged Veterans Fund monies were spent on carrying out research, and providing facilities for the Merchant Navy veteran contingent.

Net Expenditure for the year amounted to £1,509k compared to £1,500k for 2017.

Details of Grants awarded, Fundraising and Campaigning work can be found on pages 11-13 and 10-11 respectively.

Assistance to other organisations During 2018 several organisations were supported with financial grants and administration support, including Annual National Service for Seafarers (ANSS), Cobseo, Maritime Charities Group (MCG) and the Armed Forces Covenant Fund (AFCFT).

The cost of assisting other organisations was £76K, compared to £88k the previous year, much of which was recouped by charges.

Investment managers’ performances The end of year market value of the investment portfolio is £37.5m, compared to £39.2m in 2017, a reduction of £1.7m. Investment markets had a difficult 2018 dominated by concerns over US / China trade wars, the perceived excess levels of and strains in global credit markets and issues in Europe not least Brexit. The FTSE All Share index declined by 9.5%.

Three investment managers are mandated to manage the Charity’s investment funds, namely Ruffer LLP, Veritas Investment Management LLP and UBS. Ruffer aims to maintain the investment value on a twelve month rolling basis and also to outperform cash returns.

In 2018 Ruffer produced a negative total return of 4.2%.

Veritas aims to protect and grow the capital value to achieve a total return of RPI plus 4% on an annual basis.

For 2018 Veritas produced a total return of 0.4%.

We also have an investment in a fund managed by UBS which is in the process of wind-down with funds being returned to investors. The market value of UBS decreased by £151k over the year to £765k following distributions made during the year of £343.5k.

During 2018 a total £1m was drawn down from the portfolio of funds held with Veritas and Ruffer.

Investment policy The investments are maintained for current and future seafarers’ needs. The investment policy balances the need for capital protection with the desire to secure investment returns.

With the demographics information available and an overview of funds held within other maritime organisations, the General Council has chosen to reduce Seafarers UK’s funds over the medium term as part of the charity’s agreed reserves policy.

The Investment Managers are set targets to utilise their professional expertise. The Finance & Investment Committee take an overview of the total impact and individual portfolio performances. Investment managers report and discuss actual performances at each Finance & Investment Committee; this is conveyed to each General Council. The investment managers are allowed to use derivatives for protection purposes, after prior approval from the Finance & Investment Committee.

Seafarers UK promotes the health of seafarers and does not invest in any company which derives 10% or more of their income from tobacco products.

Property The investment portfolio also includes rental properties.

These are residential flats at 7 Hatherley Street and an office on the ground floor. The residential properties are let through agents and the offices are let directly to AFCFT. The rental income received in 2018 was £91k, £5k lower than on 2017 due to some short term vacancies.

These properties were professionally valued at year end at £2.6m, resulting in an uplift of £538k compared with the previous valuation in 2012. Against this, the value of land assets in the Bahamas, received a number of years ago as a bequest, has been written down by £48k to a nominal £1 after seeking independent advice locally.

In addition, the freehold land and buildings at 8 Hatherley Street, held on the balance sheet in Tangible Assets were professionally valued at £2.27m resulting in an uplift of £1.0m since the previous valuation in 2012.

A n n u a l Re p o r t 20 1 8 1 9

FINANCIAL REVIEW

Reserves policy The level of Reserves is directly linked to the charity’s expected income and necessary charitable expenditure.

Reserves are maintained to ensure the continuance of operations in the event of an unforeseen shortfall in income, increase in costs or unexpected expenditure. The Trustees seek to establish a sufficient level of designated and unrestricted reserves to generate investment income sufficient to deliver our objectives and to continue providing funding to beneficiary organisations supporting seafarers.

The level of reserves held has been informed by the Maritime Charities Group’s demographic profile work around the future size, shape and needs of the UK’s maritime sector .

The charity’s reserves are primarily held in investments valued at £37.5m. The income earned on these investments provides a significant additional income stream for the charity that is expended in support of charitable activities.

This approach provides a planned investment return that reduces reliance on other forms of unpredictable voluntary income such as legacies and voluntary donations, as well as other planned fundraising activities.

At 31 December 2018 reserves totalled £39.9m. This includes: i) Permanent Endowed Funds of £6.7m.

These endowed funds are invested with the consequent income being restricted to supporting the original endowment purposes. ii) Property Revaluation Reserve of £4.3m.

A reserve for tangible fixed assets (represented by the Head Office and income generating rental property). iii) Restricted Funds of £1m are maintained in accordance with the purposes specified by the donors. iv) Designated Funds of £25.2k.

To provide income for longer-term charitable objects.

This amount is considered to be sufficient, together

20 S e a f a re r s U K

with other income received during the period, to cover the cost of the charity’s operations, and grant-making at approximately £2m per annum (plus RPI), for at least 25 years. v) Unrestricted General Reserves of £2.7m. This amount is maintained to meet any unexpected expenditure.

Any excess of charitable expenditure over income is met by the Trustees agreeing a drawdown of reserves, providing that the value of investments is not so depleted that the ability to generate adequate income is affected.

At this time, and having regard to the reducing beneficiary community as identified by the MCG demographic research (but being mindful of increasing levels of need from longer living), it is intended to reduce designated reserves by approximately £650k per annum.

The reserves policy is reviewed by Trustees annually.

The actual level of reserves, and particularly designated reserves, is also reviewed on an annual basis to ensure they are appropriate and relevant to support the charity’s present plans. Seafarers UK will expect beneficiary charities with significant reserves of their own to state a not dissimilar policy, having regard to their own likely future beneficiary requirement.

Cash reserves Cash reserves are held for immediate cash requirements, i.e. grants payable plus a minimum of eight weeks for other expenditure. As at 31st December 2018 our grants payable were £1,063k and eight weeks average expenditure is £342k, a total of £1,405k. Cash held was £1,111k, a shortfall of £294k. The current shortfall is within our acceptable tolerance, with over half of the grants being paid in quarterly instalments during 2019. Trustees and senior staff are content with the current shortfall. In 2017 cash held was £1,676k with grants payable at £1,906k and eight weeks’ average expenditure was £388k.

FINANCIAL REVIEW

Statement of Financial Activities for the year ended 31 December 2018 Income & endowments

Donations

2018 2017 Note Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total Funds Funds Funds Funds Funds Funds Funds Funds (£'000) (£’000) (£’000) (£’000) (£’000) (£’000) (£’000) (£’000) 2

1,583

Earned from other activities

3

Investment income

4

Earned from charitable activities

5

Total income

329

-

1,912

1,448

1,356

0

2,804

233

25

-

258

771

196

967

355

40

-

395

681

230

-

911

29

-

-

29

29

-

-

29

2,616

550

0

3,166

2,513

1,626

0

4,139

Expenditure Cost of raising funds Costs of generating donations

6

510

-

-

510

524

-

-

524

Costs of generating income from other activities

7

339

4

-

343

265

39

0

304

Investment management costs

8

301

21

130

452

286

19

110

415

1,150

25

130

1,305

1,075

58

110

1,243

Total cost of raising funds Expenditure on charitable activities Port-Based Welfare Services

9

561

331

-

892

266

303

-

569

Health Care Services

9

524

66

-

590

228

32

-

260

Hardship and Poverty Grants

9

595

34

-

629

610

21

-

631

Maritime Training/Safety and Suppot

9

491

149

-

640

683

233

-

916

Advice and Information Services

9

445

8

-

453

514

269

-

783

Accommodation and Supported Housing Returned grants

9

133

50

-

183

606

718

-

1,324

9

(17)

-

-

(17)

(87)

-

(87)

2,732

638

0

3,370

2,820

1,576

0

4,396

Total Expenditure

3,882

663

130

4,675

3,895

1,634

110

5,639

Net Expenditure before transfers and other gains and losses

(1,266)

(113)

(130)

(1,509)

(1,382)

(8)

(110)

(1,500)

Transfers between funds

-

-

-

130

(130)

-

42

(442)

(2,709)

Other recognised gains and losses Realised Gains /(Loss)

14

1,803

63

396

2,262

(2,309)

Unrealised (Loss)/Gains

14

(2,036)

(80)

(534)

(2,650)

4,268

(78)

817

5,007

Net Gains on investment assets

(233)

(17)

(138)

(388)

1,959

(36)

375

2,298

Net Gains on Property assets

1,016

Net movement in funds

(483)

(130)

(268)

(881)

577

86

135

798

Total funds brought forward

32,727

1,111

7,007

40,845

32,150

1,025

6,872

40,047

Total funds carried forward

32,244

981

6,739

39,964

32,727

1,111

7,007

40,845

1,016

Reconciliation of Funds

The above results relate wholly to continuing activities.

A n n u a l Re p o r t 20 1 8 2 1

FINANCIAL REVIEW

Balance Sheet as at 31 December 2018 Income & endowments

2018 2017 Note Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total Funds Funds Funds Funds Funds Funds Funds Funds (£'000) (£’000) (£’000) (£’000) (£’000) (£’000) (£’000) (£’000)

Fixed assets Tangible assets

13

2,326

-

-

2,326

1,298

-

-

1,298

Investments

14

29,758

981

6,739

37,478

31,070

1,111

7,007

39,188

32,084

981

6,739

39,804

32,368

1,111

7,007

40,486

447

-

-

447

1,114

-

-

1,114

1,111

-

-

1,111

1,676

-

-

1,676

1,558

-

-

1,558

2,790

(1,398)

-

-

(1,398)

(2,431)

160

-

-

160

359

32,244

981

6,739

39,964

32,727

1,111

7,007

40,845

2,726

-

-

2,726

2,726

-

-

2,726

Designated Reserves

25,223

-

-

25,223

27,211

-

-

27,211

Property Revaluation Reserve

4,295

-

-

4,295

2,790

-

-

2,790

Restricted Funds

-

981

-

981

-

1,111

-

1,111

Total Permanently Endowed Funds

-

-

6,739

6,739

-

-

7,007

7,007

32,244

981

6,739

39,964

32,727

1,111

7,007

40,845

Total fixed assets Current assets Debtors and prepayments

15

Cash at bank and in hand

Total current assets Creditors : Amount falling due within one year

16

Net current assets Net assets Unrestricted General Funds

Total funds as at 31 December

17

2,790 -

2 2 S e a f a re r s U K

D Bain Chairman, Finance and Investment Committee

(2,431)

359

The financial statements and the accompanying notes are set out on pages 21 to 35.

These were approved by the General Council on the 25 April 2019 and signed on its behalf by:

Vice Admiral P. Wilkinson Chairman

-

Cdre. B.W. Bryant Director General

FINANCIAL REVIEW

Cash Flow Statement for the year ended 31 December 2018 Note below

2018

2017 (ÂŁ'000)

Net cash outflow from operating activities

1

(2,819)

(2,796)

Returns on investment and servicing of finance

2

967

911

Capital expenditure and financial investments

3

1,287

1,828

(Decrease)/Increase in cash in the year

(565)

(57)

Cash at bank and in hand at 1st January

1,676

1,733

Cash at bank and in hand at 31 December

1,111

1,676

(Decrease)/Increase in cash in the year

(565)

(57)

Net expenditure

(1,509)

(1,500)

Dividend income

(722)

(656)

Interest receivable

(154)

(160)

Rental income

(91)

(95)

Depreciation - fixed assets

23

22

1. Reconciliation of net expenditiure from operating activities

(Increase)/decrease in debtors and prepayments

667

(716)

Increase/(decrease in creditors)

(1,033)

308

Net cash outflow from operating activities

(2,819)

(2,796)

Dividend income received

722

656

Interest received

154

160

Rental income received

91

95

967

911

2. Returns on investments

Net cash inflow from returns on investments 3. Capital expenditure and financial investments Purchase of tangible fixed assets

(35)

(1)

Purchase of fixed asset investments

(14,967)

(9,685)

Sale of fixed asset investments

16,289

11,514

Net cash inflow from capital expenditure

1,287

1,828

A n n u a l Re p o r t 20 1 8  2 3

FINANCIAL REVIEW

Notes to the accounts for the year ended 31 December 2018 1 2 3 4 5 6 7 8 9 10

Accounting Policies Donations and legacies Activities for generating income Investments income Charitable activities Costs of donations and legacies Costs of activities for generating funds Costs of managing investments Charitable activities Governance costs

11 12 13 14 15 16 17 18 19 20

Information regarding employees and Trustees Pension Tangible assets Investment analysis Debtors and prepayments Creditors falling due within one year Total Funds Subsidiary undertaking Related parties Assistance to other organisations

1. Accounting Policies A

Basis of accounting

C Income

The financial statements have been prepared in accordance with the requirements of the Accounting and Reporting by Charities: Statement of Recommended Practice FRS 102 in accordance with the Charities Act 2011, with applicable Accounting Standards and the other relevant legislative requirements.

All income is included in the Statement of Financial Activities (“SOFA”) when the Fund is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the Fund being notified of an impending distribution where the amount is quantifiable, or the legacy being received.

The financial statements have been prepared under the historical cost convention as modified for the revaluation of freehold properties and investments to market value.

B

Donated goods and services are included at the value to the Fund, where material and the value can be quantified and a third party is bearing the cost. No amounts are included for services donated by volunteers.

Fund accounting Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the objects of the Fund in accordance with its Royal Charter.

Restricted funds can be used only in accordance with the charitable objects specified in each fund’s establishing constitution. The purpose of each restricted fund is set out in the notes to the financial statements. The costs of administering these funds are charged to each restricted fund.

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

D Expenditure

Endowment funds can only be used in accordance with the charitable objectives specified in each fund’s establishing constitution. Any gains or losses arising from the portfolio are included in each endowment fund. Income raised through investment income is reflected in a corresponding restricted fund where required. The purpose of each endowment fund is set out in the notes to the financial statements.

All expenditure is accounted for on an accruals basis and classified under headings that aggregate all costs related to the category. Where expenditure cannot be directly attributed to a particular category they are allocated to activities on a basis consistent with the use of the expenditure. Premises overheads are allocated reference to space utilisation and other overheads on the basis of staff numbers. i

24 S e a f a re r s U K

Costs of rasing funds are those costs incurred in seeking donations, legacies, generating funds and investments.

FINANCIAL REVIEW

Notes to the accounts (continued) for the year ended 31 December 2018

1. Accounting Policies (continued) ii

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

• Port based welfare services • Health and care services • Hardship and poverty grants • Maritime education and training • Advice and information services • Accommodation and supported housing

iii Support costs Support costs represent the staffing and associated costs of governance, finance and general administration.

These costs include the costs of governance, which relate to the statutory compliance and strategic running of Seafarers UK (King George’s Fund for Sailors) as opposed to the direct management functions inherent in generating funds, improving efficiency within the maritime sector and administering the grants.

F Investments UK freehold land and buildings held as an investment are included in the accounts on the basis of professional valuations made every four years. Investment freehold plots of land held in the Bahamas are stated at valuation (on the basis of local real estate agents). Other investments are stated at market value at 31 December. Unlisted investments are held at the most recent valuation available.

The SOFA includes the net gains and losses arising on revaluations and disposals during the year.

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

This includes such items as internal and external audit, legal advice for trustees and costs associated with constitutional and statutory requirements.

The costs are allocated to charitable activities and fundraising activities in proportion to the respective time spent, and number of staff employed depending upon which method of allocation is most appropriate to the cost.

E

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

2% 10% 20% 15%

Freehold land is not depreciated.

A n n u a l Re p o r t 20 1 8 25

FINANCIAL REVIEW

Notes to the accounts (continued) for the year ended 31 December 2018 INCOME

2. Donations

Donations Legacies

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2018 (£'000)

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2017 (£'000)

268

314

-

582

401

1355

0

1,756

1,315

15

-

1,330

1,047

1

-

1,048

1,583

329

-

1,912

1,448

1356

-

2,804

3. Earned from other activities Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2018 (£'000)

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2017 (£'000)

225

25

-

250

347

0

-

347

Corporate Sponsorships

8

0

-

8

8

40

-

48

Trading

-

-

-

-

-

-

-

-

233

25

-

258

355

40

-

395

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2018 (£'000)

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2017 (£'000)

Dividends

575

147

-

722

491

165

0

656

Interest

123

31

-

154

119

41

0

160

Rental income

73

18

-

91

71

24

-

95

771

196

-

967

681

230

-

911

Events

4. Investment Income

5. Earned from charitable activities

Re-charges to other organisations

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2018 (£'000)

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2017 (£'000)

29

-

-

29

29

-

-

29

29

-

-

29

29

-

-

29

Income from Charitable Activities are charges to unrelated organisations who contribute to the Maritime Charity Sector, the re-charges are for Grant, Financial and Human Resources services and expenses incurred on their behalf.

26 S e a f a re r s U K

FINANCIAL REVIEW

Notes to the accounts (continued) for the year ended 31 December 2018

RESOURCES EXPENDED Cost of raising funds

6. Costs of generating donations

Donations Legacies

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2018 (£'000)

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2017 (£'000)

460

-

-

460

459

-

-

459

50

-

-

50

65

-

-

65

510

-

-

510

524

-

-

524

Support & Governance costs included in above figures

190

173

7. Costs of generating income from other activities

Events

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2018 (£'000)

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2017 (£'000)

339

4

-

343

265

39

-

304

339

4

-

343

265

39

0

304

Support & Governance costs included in above figures

81

57

8. Investment management costs Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2018 (£'000)

Unrestricted (£'000)

Restricted (£'000)

Endowed (£'000)

2017 (£'000)

Other Investment Costs

65

1

1

67

21

1

1

23

Investment managers’ fees

236

20

129

385

265

18

109

392

301

21

130

452

286

19

110

415

Support & Governance costs included in above figures

80

25

A n n u a l Re p o r t 20 1 8 27

FINANCIAL REVIEW

9. Expenditure on charitable activities

2018

Financial Grants (£'000)

Campaigns Communications and events (£’000)

Assistance to other organisations (£’000)

Grants Administration (£’000)

Support costs (£’000)

Total 2018 (£’000)

681

54

27

36

94

892

Health Care Services

434

54

17

23

62

590

Hardship and Poverty Grants

465

54

19

25

66

629

Maritime Training/Safety and Support

474

54

19

25

68

640

Advice and Information Services

323

54

13

17

46

453

Accommodation and Supported Housing

104

54

4

6

15

183

2,464

324

99

132

351

3,370

Financial Grants (£'000)

Campaigns Communications and events (£’000)

Assistance to other organisations (£’000)

Grants Administration (£’000)

Support costs (£’000)

Total 2017 (£’000)

432

67

21

17

32

569

Health Care Services

166

67

8

7

12

260

Hardship and Poverty Grants

486

67

23

19

36

631

Maritime Training/Safety and Support

731

67

35

29

54

916

Advice and Information Services

616

67

30

24

46

783

Accommodation and Supported Housing

1,093

67

49

40

75

1,324

Port-Based Welfare Services

Returned Grants Total Charitable Activities

2017

Port-Based Welfare Services

Returned Grants Total Charitable Activities

(17)

(17)

(87) 3,437

(87) 402

166

136

255

4,396

2018 (£'000)

2017 (£’000)

Staff Costs

102

65

Governance Costs

167

138

Other Costs

82

52

351

255

Support costs included in charitable activities

28 S e a f a re r s U K

FINANCIAL REVIEW

Notes to the accounts (continued) for the year ended 31 December 2018

10. Governance Costs

2018 (£'000)

2017 (£'000)

Auditors remuneration for audit services *

26

24

Annual Meeting

13

13

Trustee expenses

2

3

Staff support costs

156

89

Other support costs

40

41

(237)

(170)

-

-

Re-allocated to Support Costs

* No non-audit fees were incurred or paid to KPMG LLP during 2018 or 2017.

Support costs include Annual Report, Meetings for Trustees, staff time and overheads.

11. Information regarding employees and Trustees Number of full time equivalent employees during the year :

2018

2017

FTE

FTE

Generating Charitable Income

6

7

Charitable activities

5

5

Governance and Support

9

8

20

20

(£'000)

(£'000)

885

951

Staff costs comprise Wages & Salaries Ex-Gratia Payment

45

0

Social Security

89

89

Money purchase pension scheme contributions

71

72

Other Benefits

25

19

1,115

1,131

Seafarers UK contribute to personal pension plans through Aviva.

The number of employees paid over £60,000 during the year (salary plus taxable benefits, excluding employer pensions contributions, National Insurance & redundancy payments) was:

2018 (£'000)

2017 (£’000)

£60,000 to £69,999

1

3

£70,000 to £79,999

1

1

£80,000 to £89,999

-

-

£90,000 to £99,999

1

1

All three employees earning more than £60,000 participate in the Personal Pension Plan. The contributions were £9,422, £5,714 and £4,833, from highest to lowest paid respectively, (2017 were £9,215, £5,672, £5,588, £5,579 and £5,058.

The Trustees neither received nor waived any emoluments during the year (2017: nil). Trustees are entitled to reimbursement of expenses incurred on Fund business and expenses of £1,430 were paid to six trustees (2017: £2,808 paid to seven trustees) which is mainly travel expenses.

A n n u a l Re p o r t 20 1 8 29

FINANCIAL REVIEW

12. Pension Seafarers UK operates a defined contribution scheme for all employees. The assets of the schemes are held in separate funds administered by independent pension providers. The total cost of pensions for the year incurred by Seafarers UK was £71k (2017: £72k).

13. Tangible Assets

Cost or valuation at 1st January Additions at cost Revaluation Less disposals

Freehold Land and Buildings (£'000)

Fixtures Fittings & Equipment (£'000)

Total (£'000)

1,325

155

1,480

-

35

35

945

-

945

-

-

-

2,270

190

2,460

Accumulated depreciation at 1st January

59

123

182

Charge for the year

12

11

23

Revaluation in the year

Cost or valuation at 31st December

(71)

-

(71)

Less : Eliminated on disposals

-

-

-

Accumulated depreciation at 31st December

-

134

134

Net book value at 31st December 2018

2,270

56

2,326

Net book value at 31st December 2017

1,266

32

1,298

The above freehold land and buildings are 8 Hatherley Street, London which is occupied and carrying out the operations of the Fund. All properties were revalued as at 31 December 2018 by Arnold and Baldwin Ltd, Chartered Surveyors using the Royal Institute of Chartered Surveyors appraisal valuation.

The original historical cost value (from 2012) was £1,325k. At 31st December, 2018 the carrying value of the property would have been £1,254k.

3 0 S e a f a re r s U K

FINANCIAL REVIEW

Notes to the accounts (continued) for the year ended 31 December 2018

14. Investments Market Value at 1st January

2018 (£’000)

2017 (£’000)

39,188

38,719

Additions at Cost

14,967

9,685

Sales at Book Value

(16,289)

(11,514)

Change in Market Value of Property Investments

490

Change in Market Value of Non Property Investments

(878)

2,298

Market Value at 31st December

37,478

39,188

Historical cost Value at 31st December

33,171

31,798

Analysis of Market value at 31st December

2018

2017

(£'000)

(%)

(£'000)

(%)

Interest bearing stocks and deposits UK stocks

7,948

21.2

7,816

19.9

Non UK stocks

5,174

13.8

2,900

7.4

Deposits

1,841

4.9

2,256

5.7

14,963

39.9

12,972

33.0

Total interest bearing stocks and deposits Equities UK

2,113

5.6

3,083

7.9

Overseas

17,772

47.5

20,993

53.6

Total equities

19,885

53.1

24,076

61.5

Freehold land and buildings at valuation

2,630

7.0

2,140

5.5

Total investments

37,478

100

39,188

100.0

There were no individual holdings of investments which exceeded 5% of the total market value of investments at 31st December 2018 (2017:nil).

In Dec 2018 property at 7 Hatherley Street was revalued by Arnold and Baldwin Ltd; Chartered Surveryors.

The re-valuation resulted in an increase in market value of £538k.

The investment property in the Bahamas was written down to £1; (2017: £48K).

15. Debtors and Prepayments 2018 (£'000)

2017 (£'000)

Debtors

59

69

Prepayments

70

60

Amount due from subsidiary undertaking

50

50

Accrued income

268

935

447

1,114

A n n u a l Re p o r t 20 1 8 3 1

FINANCIAL REVIEW

Notes to the accounts for the year ended 31 December 2018

16. Creditors Falling Due Within One Year

2018 (£'000)

2017 (£'000)

Grants payable

1,063

1,906

Accruals

253

340

Trade creditors

33

88

Staff costs

44

91

Prepaid event income

3

5

Amount due to subsidiary undertaking

2

1

Deferred Income

-

-

1,398

2,431

Gains/losses expenditure and transfers (£'000)

Balance 31.12.18 (£'000)

17. Total Funds Balance 01.01.18 (£'000)

Unrestricted General Funds

Income (£'000)

2,726

2,726

Designated Funds Individual regular welfare grants

2,536

244

(367)

2,413

Port-Based welfare services

5,946

572

(1,161)

5,357

Health and care services

1,703

164

(352)

1,515

Hardship and poverty grants

1,163

112

(169)

1,106

Welfare support services

1,936

186

(400)

1,722

Maritime education and training

3,770

362

(798)

3,334

Children and youth welfare

2,631

253

(380)

2,504

Advice and information services

4,012

385

(635)

3,762

Accommodation and supported housing

3,514

338

(342)

3,510

Property Revaluation Reserve

2,790

-

1,505

4,295

32,727

2,616

(3,099)

32,244

Royal Naval Officers Fund

453

25

(103)

375

van de kasteele Fund (transferred from Endowments)

129

1

(13)

117

Beryl Joyce Threadkell Legacy

64

3

(9)

58

Sheila Constance Woods Legacy

356

9

(40)

325

Unrestricted Funds Restricted Funds

Centenary AVF Merchant Navy Fund

-

0

-

-

109

110

Family Appeal

-

56

Event Sponsorship

-

25

(4)

21

Projects

-

152

(152)

-

1,111

381

(511)

981

3 2 S e a f a re r s U K

(190)

29 56

FINANCIAL REVIEW

17. Total Funds (continued) Restricted Income/(Expenditure) from Permanently Endowed Funds Endowed General Purposes

-

22

(22)

-

Inglis Fund

-

21

(21)

-

Merchant Navy South Africa Scholarship Scheme

-

6

(6)

-

Royal Navy War Libraries Endowment Fund

-

6

(6)

-

South African Women's Auxiliary Service

-

11

(11)

-

Arthur T. Jeffress Fund

-

75

(75)

-

David Richards Trust

-

22

(22)

-

Henry Herbert Wills Fund

-

6

(6)

-

Total Permanently Endowed Restricted Funds

-

169

(169)

-

1,111

550

(680)

981

Endowed General Purposes

939

-

(36)

903

Inglis Fund

871

-

(34)

837

Merchant Navy South Africa Scholarship Scheme

235

-

(9)

226

Royal Navy War Libraries Endowment Fund

247

-

(9)

238

Total Restricted Funds Permanently Endowed Funds

South African Women's Auxiliary Service

453

-

(17)

436

3,087

-

(119)

2,968

David Richards Trust

916

-

(35)

881

Henry Herbert Wills Fund

259

-

(9)

250

7,007

-

(268)

6,739

40,845

3,166

(4,047)

39,964

Arthur T. Jeffress Fund

Total Permanently Endowed Funds Total Funds

A n n u a l Re p o r t 20 1 8  3 3

FINANCIAL REVIEW

The purpose of each Restricted and Endowment Fund is as follows: Restricted Funds Royal Naval Officers’ Fund To assist officers of the Royal Navy in need or distress.

Beryl Joyce Threadkell Legacy Funds made available for the Felixstowe Committee. van de Kasteele Fund For the education of children of any UK seafarer.

Sheila Constance Wood Legacy To assist Naval Officers’ Widows.

Event Sponsorship To assist in the cost of hosting or running an event.

3 4 S e a f a re r s U K

Merchant Navy Fund Funds for Merchant Navy.

Trusts Trust donations restricted as per the trust funds request.

Projects Projects are various grants restricted as per the donor’s request.

Endowment Funds Endowed General Purposes To relieve sickness, poverty and distress of seafarers.

Inglis Fund Merchant Navy South Africa Scholarship Fund Royal Naval War Libraries Endowment Fund South African Women’s Auxiliary Service To further the educational and future career needs of seafarers’ children.

Arthur T. Jeffress Fund David Richards Trust Henry Herbert Wills Fund To assist officers and men of the Royal Navy, the Merchant Navy and the fishing fleet in need or distress.

FINANCIAL REVIEW

18. Subsidiary Undertaking Seaservers Limited, incorporated in England and having an authorised share capital of £100 (issued share £2), is a wholly owned subsidiary of the Fund through which branded goods are sold and commercial events are operated.

The company’s financial year ends on the 31 March and profits are paid to the Fund as and when appropriate by way of Gift Aid donation. A gain of £284 arose in the year ended 31 March 2018 (2017, a gain of £1,459). This was after charges of £250 (2017:£250) made by the Fund. There was a no Gift Aid donation made in 2018 (2017:nil).

As at 31 December 2018, £5,317 was owed on current account to Seaservers Limited (2017:£1,972).

The accounts of Seaservers Limited have not been consolidated into these financial statements on the grounds of immateriality. A summary of the unaudited results of Seaservers Limited for the year ended 31 March 2018 is shown below; the Company is entitled to exemption from statutory audit under section 249 of the Companies Act 2006.

Profit and Loss Account

2018 (£'000)

2017 (£'000)

Turnover

39

44

Cost of Sales and administration expenses

(39)

(43)

Profit/(loss) on activities before Gift Aid

0

1

Gift Aid Payment

0

0

Retained Profit for the year

0

1

Current assets

7

6

Net assets

7

6

Summarised Balance Sheet at 31 March 2017

19. Related Parties Some members of the General Council are trustees of charities to which the Fund makes grants. The Grants Committee’s procedures require all such interests to be declared and for these members to abstain from voting. Within the General Council no single member exercises control or influences over any particular grant approval.

During 2018, legal advice was sought from PWW; (firm of solicitors) amounting to £4,326. The firm's partner Mr Gerald Kidd served as Trustee and is also member of the General Council. All balances were settled in the year and nothing was due at 31st December, 2018.

Seaservers Limited is the trading subsidiary of Seafarers UK, see note 18 for details of transactions between Seaservers Limited and Seafarers UK.

20. Assistance to other organisations The fund assisted several organisations with Grant, Financial and Human Resources admininistration; in 2018 the fund assisted Annual National Service for Seafarers (ANSS), Cobseo, Maritime Charities Group (MCG) and Seavision. These have been recharged below cost and are shown within Charitable Activities on Page 26 (note 5).

A n n u a l Re p o r t 20 1 8 3 5

FINANCIAL REVIEW

Independent auditor’s report to the Trustees of Seafarers UK (King George’s Fund for Sailors) Opinion We have audited the financial statements of Seafarers UK (King George’s Fund for Sailors) (“the charity”) for the year ended 31 December 2018 which comprise the Statement of Financial Activities, The Balance Sheet, the Cash Flow Statement and related notes, including the accounting policies in note 1.

In our opinion the financial statements: • give a true and fair view of the state of the charity’s affairs as at 31 December 2018 and of its incoming resources and application of resources for the year then ended; • have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and • have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Royal Charter.

Basis for opinion We have been appointed as auditor under section 144 of the Charities Act 2011(or its predecessors) and section 44 (1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report to you in accordance with the regulations made under those Acts.

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.

Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the charity in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern The trustees have prepared the financial statements on the going concern basis as they do not intend to liquidate the charity or to cease its operations, and as they have concluded that the charity’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of at least a year from the date of approval of the financial statements. In our evaluation of the trustees’ conclusions, we considered the inherent risks to the charity’s business model, including the impact of Brexit, and analysed how those risks might affect the charity’s financial resources or ability to continue operations over the going

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concern period. We have nothing to report in these respects.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor’s report is not a guarantee that the charity will continue in operation.

Other information The trustees are responsible for the other information, which comprises the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. We are required to report to you if: • based solely on that work, we have identified material misstatements in the other information; or • in our opinion, the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements.

We have nothing to report in these respects.

Matters on which we are required to report by exception Under the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) we are required to report to you if, in our opinion: • the charity has not kept sufficient and proper accounting records; or • the financial statements are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit.

We have nothing to report in these respects.

Trustees’ responsibilities As explained more fully in their statement set out on page 14 the trustees are responsible for: the preparation of financial statements which give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of

FINANCIAL REVIEW

accounting unless they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

The purpose of our audit work and to whom we owe our responsibilities

Auditor’s responsibilities

This report is made solely to the charity’s trustees as a body, in accordance with both section 144 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act and section 44 (1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

Fleur Nieboer for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 15 Canada Square London E14 5GL Date: 7 May 2019

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2018 Trust Supporters Seafarers UK is very grateful to the following Trusts and Charitable Foundations for financial support during 2018: A & L Sussman Charitable Trust A E H Salvesen’s Charitable Trust Ann Jane Green Trust Bedhampton Charitable Trust BP Foundation Charities Trust Dr & Mrs J D Olav Kerr Charitable Trust (No 2) Dudley and Geoffrey Cox Charitable Trust G.M. Morrison Charitable Trust Garfield Weston Foundation Gerrard and Audrey Couch Charitable Trust James Weir Foundation Joseph Strong Frazer Trust Liverpool Charity and Voluntary Services Martin Charitable Trust Masonic Charitable Foundation Michael Cornish Charitable Foundation Miss Mary Dunlop Murdoch Andrew Charitable Trust Peter Dixon Charitable Trust PF Charitable Trust Sir Jeremiah Colman Gift Trust The Anson Charitable Trust The Baltic Charitable Fund The Bryan Christopher Corrigan Charitable Trust The Castanea Trust The Charity of Stella Symons The Charles Littlewood Hill Trust The Duffield (Tiverton) Charitable Trust The Edith Lilian Harrison 2000 Foundation The Edith Murphy Foundation The Elaine Barratt Charitable Trust The Elizabeth and Prince Zaiger Trust The Ernest Cook Trust The Florence Turner Trust The Fort Foundation The Frederick & Phyllis Cann Trust The Fuellers Charitable Trust Fund The Gerald Bentall Charitable Trust The Gosling Foundation The Hemby Charitable Trust The Horace Moore Charitable Trust

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The Iliffe Family Charitable Trust The Laurence Misener Charitable Trust The Leslie Mary Carter Charitable Trust The Loseley and Guildway Charitable Trust The Misses Barrie Charitable Trust The Orr Mackintosh Foundation The Patricia and Donald Shepherd Charitable Trust The Payne-Gallwey Charitable Trust The Privy Purse Charitable Trust The Robert Clutterbuck Charitable Trust The Simon Gibson Charitable Trust The Stafford Trust The Swire Charitable Trust The Sydney Black Charitable Trust The Sylvia and Colin Shepherd Charitable Trust The Thomas Lilley Memorial Trust The Verdon-Smith Family Charitable Trust The Watson Trust The Wilfred and Elsie Elkes Charitable Fund The Worshipful Company of Chartered Secretaries & Administrators William Allen Young Charitable Trust

Seafarers UK has been helping people in the maritime community for over 100 years, by providing vital support to seafarers in need and their families, and to those in education or training who are preparing to work or serve at sea. We do this this by giving grants to organisations and projects that make a real difference to people’s lives, across the Merchant Navy, Fishing Fleets, Royal Navy and Royal Marines.

Seafarers UK 8 Hatherley Street, London SW1P 2QT Telephone 020 7932 0000 Email seafarers@seafarers.uk Website www.seafarers.uk

@Seafarers_UK SeafarersUK

Seafarers UK (King George’s Fund for Sailors) is a Registered Charity, No. 226446 in England and Wales, incorporated under Royal Charter.

Registered in Scotland, No. SC038191. Registered Office: 8 Hatherley Street, London, SW1P 2QT.