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ANNUAL

REPORT AND

ACCOUNTS

2017


2017 IMPACT FIGURES:

SAILORS’ SOCIETY

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£4.5 MILLION SPENT TRANSFORMING SEAFARERS’ LIVES

13,142 RECEIVED PRINTED NEWS FROM HOME

569 SEAFARERS VISITED AT HOME


ANNUAL REPORT AND ACCOUNTS 2017

375,500

38,758

SEAFARERS REACHED

SEAFARERS TRANSPORTED

18,775

6,060

SHIPS VISITED

BIBLES DISTRIBUTED

477

289

WORSHIP SERVICES HELD

SEAFARERS VISITED IN HOSPITAL

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SAILORS’ SOCIETY

contents

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06 10 26 28 38 40 CHAIRMAN’S AND CEO’S STATEMENTS

VISION, MISSION AND OBJECTS

MEDIA AND ADVOCACY

DEVELOPMENT (INCOME GENERATION)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SAILORS’ SOCIETY

ACCOUNTS


ANNUAL REPORT AND ACCOUNTS 2017

14 18 19 32 36 37 74 GOVERNANCE AND SENIOR LEADERSHIP

STRATEGIC REPORT

PROGRAMME

FINANCIAL REVIEW

PRINCIPAL RISKS AND UNCERTAINTIES

STATEMENT OF THE FINANCIAL DUTIES AND RESPONSIBILITIES OF TRUSTEES

ADMINISTRATIVE DETAILS, TRUSTEES AND ADVISORS

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SAILORS’ SOCIETY

Chairman’s Statement

Alastair Fischbacher 24 September 2018

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At the time of writing this report we have just had our 200th anniversary service in Southwark Cathedral. While this report reflects on 2017, I cannot wait another year to comment on just how wonderful it was to celebrate 200 years of the Society with such a warm and joyful service attended by so many chaplains, staff, friends and supporters. We were further honoured with the presence of His Royal Highness Prince Michael of Kent, who gave an address, and Shipping Minister Nusrat Ghani MP.


ANNUAL REPORT AND ACCOUNTS 2017

“ But this is only one of the events through our anniversary year that we have to mark this special time in our history. We started preparations in earnest for all of them in 2017, which has meant a great deal of extra activity for our staff everywhere during that period. Thanks to all of you for all the hard work to make our anniversary year special. I am pleased to say that we have been able to continue with the full range of activities supporting seafarers around the world. Near to home, we have opened a new centre in Southampton which is better located for visiting seafarers. Further afield, we are expanding our network of chaplains and ship visitors to provide support and local assistance to visiting seafarers. In India and the Philippines particularly, we are increasing our services to support seafarers and their families at home. Our scholarships and grants for cadets and seafarer training now cover Greece, the Philippines, Poland, Singapore, Ukraine and the UK. Our Ship Visitor app usage continues to grow; we are enhancing our Crisis Response Network to make it easier to access from anywhere and our

Our range of activities is quite staggering and a testament to the ambition and dedication of all those involved in the delivery.

Wellness at Sea training is being received by ever more seafarers and welcomed by an increasing number of owners, operators and managers. In fact, our range of activities is quite staggering and a testament to the ambition and dedication of all those involved in the delivery. But all this continues to require the funds to make it happen. While we have had another year when we have drawn on reserves, we are working hard to increase our funding to sustainable levels. We have researched and developed new events for 2018, our coffee sales are increasing and we have opened new charity shops. We continue to develop church relationships, in the UK and abroad. Our storytelling online and in the press about what we do brings our work to the attention of many more people each year.

for the next five years based on shared understanding of the demands, resources, opportunities, difficulties and risks. This work is critical to ensure that the Society is able to respond to the changing environment in which it operates. I would like to thank everyone who is involved in some way with making it all happen – volunteers, donors, supporters, chaplains and ship visitors, shop staff, office staff and Trustees. What you do is vital in enabling us to help seafarers and their families in need, wherever they may be. Thank you. On behalf of the Trustees of the Society, I commend the Sailors’ Society Annual Report and Accounts to you.

With so much going on it would be easy to focus on the detail, but we are aware of the need to look ahead and the board and management have been working together over the year to improve communications, streamline meetings and committees and jointly develop a strategic plan

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Chief Executive’s Statement Sailors’ Society continues to be at the cutting edge of welfare innovation and 2017 has seen its staff, chaplains and volunteers make an immense contribution to the lives of seafarers and their families. We are blessed to have such a committed workforce and this has enabled the Society to make great advances over the past year.

Stuart Rivers 24 September 2018

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ANNUAL REPORT AND ACCOUNTS 2017

“ Our position as digital leader in the maritime welfare sector has been further strengthened throughout 2017. Ship Visitor, a mobile app developed by the Society and made available to all welfare charities, has seen further enhancements to improve the support available to seafarers. Our creative team has brought new thinking to Wellness at Sea, building an online training platform to extend the reach of the programme and collaborating with some of the most innovative companies within the maritime industry. Seafarer wellbeing is a core focus of our work. In 2017 we held the inaugural Wellness at Sea conference to raise awareness of the challenges of working at sea and how the industry can be involved in improving the wellbeing of seafarers. This was followed by a further conference in 2018, and we continue to invest in research to support the development of welfare services around the world.

Ship Visitor, a mobile app developed by the Society and made available to all welfare charities, has seen further enhancements to improve the support available to seafarers.

We have been investing in the sustainability of the charity. As we approach our 200th anniversary we recognise the need to diversify our income and identify new revenue sources that will strengthen us for the future. The expansion of our charity shop network has required considerable investment and commitment from staff, but we expect to see a positive return over the coming years. Our programme of welfare provision has grown over the year, with new projects established in Bangladesh and India. Our Crisis Response Network (CRN) has also been extended, with 52 trained crisis responders in place around the world. Our Asia CRN Hub was established during the year, with 20 responders in place in the Philippines, India, Indonesia, Singapore and Myanmar. We are keen to work with our corporate partners to encourage a coordinated response to piracy, abandonment and other crises.

During our 200-year history Sailors’ Society has been at the forefront of welfare provision for seafarers and their families. Times may have changed, as have the services we provide, but the challenges facing seafarers today – crises, isolation, loneliness, depression – are as real now as they were 200 years ago. We owe a great debt of gratitude to all those who have served and supported us over the past year and trust that as we begin the next significant chapter in the Society’s history we will do so with even more support for the seafarers upon whom we all rely.

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ANNUAL REPORT AND ACCOUNTS 2017

VISION, MISSION AND OBJECTS Our vision is for Sailors’ Society to be seen as the leading charity for the welfare and wellbeing of seafarers and their families worldwide. Our mission is to meet the practical, emotional and spiritual needs of seafarers and their families at home, in port and at sea. “The objects for which the Charity is established are to benefit British and foreign seafarers, ex-seafarers and intending seafarers and their families and dependants and the communities in which those people live or work by the advancement of the Christian religion, the advancement of education and the relief of poverty and distress and the promotion of any charitable purpose by such ways and means as the Charity shall think fit and for such purposes to do all such lawful things as are necessary to the attainment of the foregoing objects.” Sailors’ Society’s Articles of Association.

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SAILORS’ SOCIETY

Vision, mission and objects THE ADVANCEMENT OF THE CHRISTIAN RELIGION While our ministry is motivated by Christian faith, our network of chaplains and programme of activity provides services to those of all nationalities and those of any faith or none. THE ADVANCEMENT OF EDUCATION We provide educational grants and scholarships to those who want to pursue a career at sea but are without the means. We provide educational support to the children of seafarers to increase future living standards of seafaring families. THE RELIEF OF POVERTY AND DISTRESS We act when the welfare of seafarers and their families is affected by tragedy, incident or accident, and make interventions that relieve poverty and distress. We provide chaplains in ports around the world where the need for welfare provision is greatest. PROMOTION OF OUR CHARITABLE PURPOSE We actively educate the public about our cause and promote our activity

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to raise awareness of the ongoing needs of seafarers and their families. We regularly assess welfare provision in the locations where we are working and in locations that have limited or no welfare provision, to find new opportunities to achieve our mission. We work collaboratively with other agencies and International Christian Maritime Association members, where there is a common purpose, to improve the lives of our beneficiaries. We work in partnership with the maritime industry and its corporate personnel to ensure that we fully understand and respond to changing welfare needs. Each year we review the aims and objectives that we set as we develop our future plans. We look at our achievements during the year and refine our plans accordingly. We regularly assess the cost of delivering our services to our beneficiaries. Our charitable activities are strategically linked to our goals to ensure that we continually meet the range of our charitable objects and are usefully serving those in the maritime community for whom we work.

GRANT MAKING POLICY The Society provides grants to organisations and individuals who add value to its work or help it achieve its charitable objects. This is particularly the case in locations where the Society has no permanent presence or infrastructure to support its target beneficiaries. In these places we identify the most effective organisations and individuals to help us. PUBLIC BENEFIT In assessing the public benefit of the activities we undertake as Trustees of the charity, we confirm that we have complied with our duty under Section 17 of the Charities Act 2011. We also state that we have given due and proper regard to the guidance issued by the Charity Commission on delivery of public benefit, including the supplementary guidance. FUNDRAISING PRACTICES Ensuring our fundraising principles and approaches are effective and correct is of the highest importance to Sailors’ Society, therefore in 2017 a thorough review of our operations took place to ensure they were compliant with regulatory standards.


ANNUAL REPORT AND ACCOUNTS 2017

“ In the UK we raise funds from individuals on a small scale, mainly through direct marketing and individual giving. One area of concern was the cost effectiveness of tele-marketing and volunteer door-to-door collections, the result being that we stopped these forms of fundraising early in the first quarter of 2017. In the UK and internationally we also raise funds through corporate partnerships and events. Many of these relationships are developed from face-to-face meetings and networking. We are registered with the Fundraising Regulator that was established in 2016 and we remain committed to ensuring we comply with the standards expected. This is vitally important to us as we seek to ensure our donors receive the best supporter experience possible. Through 2017 we did not receive any complaints about our fundraising activity. As part of our commitment to the Fundraising Regulator, we have reviewed external suppliers to ensure they meet the high standards we expect of our own team. As a result of the internal

We work collaboratively with other agencies and International Christian Maritime Association members, where there is a common purpose, to improve the lives of our beneficiaries.

practices review we decided to cease external screening of our donor database other than to ensure that records are cleaned for deceased individuals and those who have moved away from addresses we hold. During 2017 we have also undertaken a significant piece of work to ensure that our use of data is General Data Protection Regulation compliant. We have implemented a new approach to gaining consent across the organisation that was rolled out across 2018 ahead of the new regulations being in place from May 2018. VOLUNTEERS Our volunteers provide important additional resources to ensure effective delivery of our programme, help raise funds for our work and increase the profile of the Society. We have approximately 1,100 volunteers working across the following areas:

• Charity shop volunteers who contribute their time on a regular basis; • Individual representatives of the Society in their own churches who distribute our news and promote our work and campaigns; • Volunteers involved on a monthly basis preparing items for Christmas parcels; • Ambassadors who network in the industry to promote awareness of the Society’s charitable work, purpose and fundraising opportunities; and • Knitters who make woolly hats, which are widely distributed in Christmas parcels for seafarers and regularly sent to chaplains around the UK and overseas to give out on ship visits.

• Trustees who commit much of their time to providing strategic leadership and governance; • Volunteer ship visitors who support our chaplains around the world and honorary chaplains who work independently;

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GOVERNANCE and SENIOR LEADERSHIp The Society is governed by its Articles of Association. The Board of Trustees provides governance for the Society. Trustees are also directors of the registered company limited by guarantee. The Board meets four times a year to consider matters of policy and to review the strategy and performance of the Society. The Trustees review and update existing policies and introduce new ones as and when appropriate. The Chief Executive is responsible for recommending the Society’s strategy to the Board and for all ongoing operations of the Society, ensuring its resources are used effectively and its assets are safeguarded. The Society maintains a register of Trustees’ and the Senior Leadership Team’s personal interests and those of their immediate family members to ensure that potential conflicts of interest are identified and addressed by the Society. Any changes during the year are notified verbally to the Society and confirmed in writing annually. Any potential conflicts of interest are identified at the start of all Trustee and committee meetings and the individual involved withdraws from discussions and does not take part in decisions made where a conflict of interest exists.

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ANNUAL REPORT AND ACCOUNTS 2017

The Board maintains and regularly reviews the skills of Trustees, in accordance with best practice, to ensure the needs of the charity are well supported through the collective skillset and experience.

COMMITTEES The Board operates four committees and sets out the terms of reference for each in accordance with best practice. The current committees are:

The Chief Executive attends all Board and committee meetings. The members of the Senior Leadership Team attend Board meetings and committee meetings relating to their area as required.

• Finance and General Purposes • Programme • Development • Nominations (formerly named remuneration)

BOARD DEVELOPMENT There is no requirement for any Trustee to stand down upon reaching a particular age or term of office. The Board maintains and regularly reviews the skills of Trustees, in accordance with best practice, to ensure the needs of the charity are well supported through the collective skillset and experience. The Board considers nominations for new Trustees and candidates are interviewed prior to appointment to ensure they can add value and bring relevant skills and experience.

The first three committees are made up of Trustees, professional advisors and members of the Senior Leadership Team, reviewing areas of opportunity and challenge to add value to the Society’s work. The appointed chair of each committee reports to the Board four times a year. The Nominations Committee meets bi-annually and consists of the Chairman, the Vice Chairmen and the chairs of the committees. Its recommendations are taken to the Board as part of the annual budgetsetting process. The business of the Nominations Committee consists of managing the composition of the Trustee Board and setting employee remuneration within the Society.

Upon election, a Trustee participates in a formal induction plan tailored to individual needs. This covers an understanding of the Society’s business and the aspects of ministry, welfare, education support, and the relief of poverty and distress. Where appropriate, familiarisation visits are arranged to a port where we operate.

New Trustees meet our key staff and stakeholders and receive information about their Trustee responsibilities and committee work. Our Trustees are required to maintain and develop their knowledge and governance skills throughout their period of office. The Society supports them with regular information covering developments in governance matters, charity legislation and any changes in regulation by the Charity Commission, and encourages and assists with attendance at appropriate training opportunities and governance conferences. A secure digital platform is used to provide an online repository for Board documentation and recording of decisions. This has proved an effective governance tool. During 2015 a Board review was commenced to ensure that the Society’s approach to governance is in line with current best practice and legislation. Governance continues to be an ongoing activity, with a focus on succession planning and the implementation of recommendations in line with best practice for the sector.

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GOVERNANCE and SENIOR LEADERSHIp BOARD CHANGES DURING THE YEAR In June 2017 Ian Ward resigned as a director having served since 1992. His experience of the sea, the shipping industry and from his time in the legal profession served the Board invaluably over his period of service. Revd Tim Wilkinson stepped down from the Board in September 2017 after serving almost three years. Tim was a member of the Programme Committee and his input from a Christian ministry perspective was greatly valued. The Board is grateful for the contribution of both Ian and Tim during their time as Trustees. STAFF PAY POLICY As an organisation with important responsibilities towards our beneficiaries, donors, supporters, staff and the public, Sailors’ Society recognises the importance of transparency and accountability in all aspects of our work. Our principles are to pay our staff a fair salary that is competitive within the charity sector, and that is proportionate to the complexity and responsibility of each role.

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For UK-based staff, including the Senior Leadership Team, we monitor charity sector salary trends through the Croner Reward Survey, annually adjusting our salary ranges to remain aligned with the charity sector. We do not compete on pay with the public or private sectors. For overseas staff we refer to outside agencies for guidance and ensure that salaries set in local currency are adjusted to reflect annual inflation rates pertaining to each country. We ensure that salaries awarded reflect performance by rewarding strong performers the most and weaker performers the least, while supporting performance improvement through daily supervision and annual appraisal. A separate procedure is in place for performance management. CODE OF CONDUCT Sailors’ Society is a member of the International Christian Maritime Association (ICMA) and has signed its code of conduct stating that it will: 1. Show an unconditional love to the seafarer as a human being, created in the image of God, and a sincere respect for her/his personal values and beliefs;

2. Serve seafarers and their dependants of all nationalities, religions, cultures, language, sex or race; 3. Fight prejudice, intolerance and injustice of any kind; 4. Respect the diversity of ICMA members and churches and develop that which unites them; 5. Respect the loyalty of those engaged in maritime ministry to their particular ecclesiastical discipline and tradition and refrain from proselytising seafarers; and 6. Co-operate with persons, organisations and institutions, Christian or non-Christian, which work for the welfare of seafarers. SENIOR LEADERSHIP TEAM The day-to-day management and operation of the organisation is delegated to the Chief Executive Officer of Sailors’ Society, who discharges this responsibility through the Senior Leadership Team. The Chief Executive works with the Board and sub-committees to agree strategy, policy and direction in order to deliver the objects of the charity. The Senior Leadership Team is responsible for implementing the strategy agreed.


ANNUAL REPORT AND ACCOUNTS 2017

our SENIOR LEADERSHIP TEAM STUART RIVERS CEO

ADAM STACEY

MELANIE WARMAN

SANDRA WELCH

ANDREW PITCHER

Director of Development

Director of Media and Advocacy

Deputy CEO and Director of Programme

Director of Finance and Administration

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STRATEGIC REPORT OVERVIEW In 2017 we revised the Strategic Plan for the organisation for the five years ahead to 2022, with input from the Trustees and management team. We looked at what success looks like for the charity from a variety of perspectives and the forces of change which may influence our work or ability to fundraise. Objectives have been set in the plan with short term, medium term and long term goals and measures. While income remained a challenge through 2017, we continued to press forward in diversifying income with new commercial ventures and funded developments from our reserves, ensuring our beneficiaries continued to receive the care and support needed. We began the year by extending our Crisis Response Network in Ukraine and Africa to Asia, as kidnappings at sea reached their highest levels in 10 years. All 20 of our chaplains across Asia were trained in

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crisis response. Much closer to home, we opened our new seafarers’ centre in Southampton, a few miles from our global Head Office, giving seafarers docking in the city’s busy port the opportunity to access support services and free Wi-Fi. In total we reached some 375,500 seafarers through our port-based welfare services over the year and our wider projects around the world benefited many more seafaring families and communities. We continue, as ever, to work alongside other members of the International Christian Maritime Association – our partners in mission – and other agencies that have expertise and manpower on the ground so we can deliver support in a cost-effective way. In reporting our impact and progress through the year we have assessed our activities against the charitable objectives for the benefit of seafarers and their families.

FUTURE PLANS In 2018, we reach the milestone of our 200th birthday. As the world’s oldest Christian maritime welfare charity we will have much to celebrate looking back over two centuries of history. But we also want to write a new chapter moving forwards, extending our reach still further around the world to areas where welfare provision is limited or non-existent. While we have become and continue to be the digital leader among maritime welfare organisations, we will remain focused on our support to beneficiaries at home, in port and at sea, providing a rounded portfolio of services. Overseas, we will forge new partnerships to help us deliver our extensive programme in the most economical and effective ways. As we refine our efforts to diversify income, we will focus on community groups and commercial ventures, as well as developing our major donor programme.


ANNUAL REPORT AND ACCOUNTS 2017

PROGRAMME ACHIEVEMENTS CHAPLAINCY Our dedicated team of chaplains provided outstanding practical and pastoral services. During the year under review they visited 18,775 ships, which equates to approximately 375,500 of the world’s 1.6 million seafarers, they transported 38,758 seafarers and provided printed material such as local news, Bibles, books, leaflets and local information to 78,820 seafarers last year. Sailors’ Society’s global presence continues to grow and we are now represented in 29 countries with 118 active chaplains and ship visitors in 91 ports. In 2017 the Society extended its chaplaincy work through ship visitors and affiliates. We have seen this number increase steadily with a total of 12 affiliated chaplains. These affiliate chaplains are predominantly in North America, based in Canada and the United States. In October 2017 Sailors’ Society increased its footprint in the UK by employing a new chaplain, based in the port of Southampton. This appointment was made in conjunction with the opening of its first seafarer centre specifically

designed to address the holistic wellness of seafarers. The centre is set up within a wellness framework. It has a number of wellness zones which include a Social Zone, where seafarers have access to Wi-Fi and other means of communication, as well as the opportunity, within the comfortable setting of a coffee shop, to socialise with their crew mates and other visiting seafarers. The centre also houses an Intellectual Zone containing material about the Maritime Labour Convention, 2006, the Society’s Crisis Response Network and other welfare organisations. In addition to this a Physical Wellness Zone will provide access to the Wellness App through consoles, as well as leaflets and information signposting seafarers to the local health services in Southampton. Plans to establish a presence in St Petersburg and additional ports in Ukraine remain postponed due to the political situation in those regions. EDUCATION Sailors’ Society remains committed to funding maritime education. It seeks to do all it can to remove

the barrier of financial hardship, which prevents promising students from pursuing a career at sea or existing seafarers gaining additional qualifications to further their careers. Nautical grants are designed to offer highly sought after opportunities to ratings, officers and cadets by providing grants for training. These training opportunities are made available to students who, without access to this funding, would not have the means of pursuing a seafaring career. Through enabling students to receive maritime training by alleviating financial barriers, Sailors’ Society seeks to widen entry into the industry and thereby invest in the future of global seafaring. Fifteen grants were awarded last year to students from Ghana, the Philippines, Malaysia, Indonesia, India, Madagascar and the United Kingdom. The number of students involved is lower than the previous year due to the higher cost of the fees resulting from more students pursuing degree level and Masters courses. The Society currently operates a number of maritime scholarships that cover up to four years of full-

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time study in Poland, Singapore, Greece, Ukraine and the United Kingdom. Since the commencement of the scholarship programme in 2015 the Society’s scholarship students have continued to make excellent progress and have shown appreciation for the opportunities that have been granted to them. Sailors’ Society also uses industry contacts to arrange requisite sea time for students. Additionally, the charity works in partnership with the Propeller Club in the Philippines, which offers a vocational programme in maritime catering. The programme has technical and practical components; students are able to work with some of the top chefs in the Philippines. The Society has funded two cohorts of 12 and 13 students, 25 in total. The first cohort graduated in December 2016 and the second at the end of 2017. These courses equip students from disadvantaged backgrounds with the qualifications necessary to become cooks in the maritime industry. Similarly, the Society works in conjunction with the Homer Foundation and Garrets International enabling students to pursue catering and hospitality qualifications at the Magsaysay Center for Hospitality and Culinary Arts (MIHCA). The first student commenced in March 2017 and will complete the one-year course in February 2018. In 2017, a total of 38 students received scholarships from the Society to pursue a career at sea. In Ghana, the Society has funded St Nicholas School in a deprived seafaring community in the port of Tema. The work included the construction of a classroom, as well as funding the school’s cadet

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programme that comprises 20 students. POVERTY AND DISTRESS Since 1818, Sailors’ Society has engaged in activities to transform the lives of its beneficiary group as outlined in its objects. In the past year the Society has expanded the scope of the programme and projects that it provides to relieve the poverty and distress of seafarers, their families and dependants globally. Welfare grants The Society has an emergency welfare grant fund to help serving merchant seafarers, retired seafarers and their dependants who find themselves in need. The fund has provided a lifeline to seafarers, their families and dependants whose lives have been affected by a crisis at sea, including piracy, abandonment or unemployment. Assistance with rent, utilities, grants to repair homes or businesses and medical care – e.g. paying for medicines, routine and lifesaving treatments and procedures – are some examples of the nature of the grants awarded. Retired seafarers We have been able to continue to support 13 ex-seafarers (or their dependants) residing in the UK through regular monthly payments of £52 from the Leith Aged Mariners’ Fund. At the beginning of the year there were 15 beneficiaries with one new entrant, one voluntary withdrawal and sadly two deaths during the year. Sir Gabriel Wood’s Mariners’ Home, our retirement home for seafarers in Greenock, Scotland, continues to provide accommodation and care for retired ex-seafarers and those who have worked in maritime

related industries. The Home is a Grade A listed building that dates back to 1854. Preference for entry is given to the Scottish counties of Renfrew, Ayr, Dumbarton and Argyll & Bute. The Home also offers care for people suffering from Korsakoff’s syndrome, an alcohol-related disease resulting in dementia which is particularly prevalent among seafarers. The Home has capacity for 43 but there was a drop in occupancy during the year from 41 residents at the beginning of the year to 36 at the end. While the number of local authority-funded residents is reducing due to a preference for care at home, the spare capacity is being used by others for short-term respite care. Family outreach activities Family outreach officers have been employed by the Society in Madagascar and the Philippines to work with the families of seafarers. They provide day-to-day welfare and perform a range of activities including the following: - Training and awareness sessions; - Hazard readiness training and disaster risk reduction; - Crisis Response Network programme; - Seafarers’ Pupils’ Clubs; - Seafarers’ family associations; and - Retired seafarers’ reintegration programmes. PROJECTS During the course of 2017 Sailors’ Society has increased the scope of the projects that it provides for the benefit of seafarers and their families globally. The Society’s emergency assistance offered to seafarers and their families left devastated by Typhoon Haiyan


ANNUAL REPORT AND ACCOUNTS 2017

ST NICHOLAS SCHOOL, GHANA

at the end of 2013 was the catalyst for a new focus on overseas projects. The impact of the Society’s initial response to the typhoon was most effective, leading to the charity setting up a number of projects in the region and inspiring further initiatives in other countries across the world. The charity’s projects have progressed into the following categories: small school projects; rebuild projects; community projects; health and well-being projects; crisis response and IT projects. Small school projects These projects seek to enhance schooling prospects for seafarers’ children by providing valuable resources that improve their learning as well as their access to it. New bicycles, as well as requisite safety equipment, have enabled pupils to travel long distances to schools and motorised boats allow pupils to travel safely. The provision of computers and internet access at our three partner schools in the Philippines has helped to improve lesson quality. The success of these projects led to the addition of initiatives such as the School Boat Project, which was set up in partnership with Barangay councils to engage the Protection of Children-

Education Committees and schools of Sulangan and Suba. The School Boat Project gives hope to children on Bantayan Island, improving access to quality education. The project delivers several outcomes in that it provides transportation for children and teachers to reach school safely and on time, encourages regular attendance at school and keeps children in education for longer. The long-term effects of this are improved literacy and numeracy, all of which have a positive effect on the local community. Two school boats travel around the islets to pick up children at designated safe areas at the beginning and end of the school day. An estimated 120 children from four islets are transported to school each day. This removes the cost barriers of transport, enabling families to send children to school, and ensures a safer journey for children crossing who previously had to wade through the sea at low tide, a distance of two kilometres. Due to the success of this project a mobile boat library is being constructed. Further construction and delivery of this service will be carried out in line with the requirements of the recently changed local government.

REBUILD PROJECT, PHILIPPINES

Rebuild projects Rebuilding projects in the Philippines began in 2013. Due to the scale and nature of these projects they require the Society to work through partner organisations. Since 2013, with assistance from our partner organisations, we have built 48 new homes, three school rooms (which are earthquake and typhoon resistant and therefore double as emergency shelters), and four health centres with birthing facilities in the towns of Panaganang, Leyte, Libertad and Ticad. It is estimated that these centres will each service approximately 2,000 direct beneficiaries, but potentially support 18,000 non-emergency medical patients, as well as facilities for approximately 400 births across the four centres annually. Local municipalities carry out the overall running, administration and staffing of the centres. The Society planned two rebuilding projects that were due to start in 2016. The first project involved the development of 100 houses built in two phases in Lipayran. This project was not implemented as it does not currently fulfil the criteria of our due diligence process. Restricted funds for rebuilding in the Philippines are

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being allocated to an alternative project that meets the condition of the gifts received. A programme has been identified which will commence in the autumn of 2018. The second project focussed on disaster risk reduction in Bangladesh. The objective of this project was to improve the living conditions of the seafarers and retired seafarers living in these communities through disaster-resilient housing, safe drinking water supply and disease reduction, through the provision of latrines, as well as providing education in disaster preparedness and risk reduction. This project was completed on schedule in June 2017 with the total number helped estimated at 4,400 (626 direct beneficiaries 3,774 indirect beneficiaries). Health and well-being projects Sailors’ Society remains committed to maintaining and furthering the health and well-being of seafarers. Beginning with the launch of Wellness at Sea in January 2015, the Society has since provided a number of different health and well-being initiatives such as a Crisis Response Network in the Africa region, as well as supplying ear and eye testing equipment in Deendayal, India. Below is a brief summary of the three projects in this category that are operational. 1. Wellness at Sea The holistic wellness coaching programme is designed specifically for seafarers and their unique social and working environment, in order to improve their on-board well-being, through preparing students, cadets, ratings and officers for a career and life at sea.

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Design and delivery of the programme in the first two years has met our expectations. The programme has been successfully delivered to almost 2,000 seafarers. The plans for the further development of the programme, which included making the programme more readily available to all seafarers through an online eLearning course, was completed and beta-tested by 1,500 students at the end of 2017, ready for launch in the summer of 2018. The eLearning platform is designed specifically for junior officers and ratings; it includes 20 hours of study, is interactive and has helpful standalone animations which deal with each module and mental heath in particular. In 2016, train-the-trainer courses were designed in order that the soft skills of the coaching programme could be delivered in the seafarer’s first language. A total of 98 trainers, including Hindi, Russian, Mandarin and Tagalog speakers were trained over the past two years. The Wellness at Sea Mobile App was first released in April 2016. The free app, operating on android and iOS platforms, serves as a daily check-in for seafarers along with providing a range of useful resources including: • A copy of the ESV Bible; • Information about our programme; • Welfare providers’ contact information; • A port search function listing country safety information, port services and chaplains’ contact details for ICMA members; • Feature stories from the current issue of Chart and Compass; and • Information on Marine Traffic services (our AIS data partner).

Additions to the app were added with the assistance of Bernard Schulte Shipmanagement in 2017 focusing on the physical wellness of seafarers. These include timed exercises for small spaces, recipes and nutritional information, healthy eating tips and a BMI calculator. In February 2017 the Society held its first Wellness at Sea conference in Singapore. This was a successful event attended by more than 70 delegates. Another conference has taken place in March 2018. 2. Crisis Response Network Since 2015, Sailors’ Society has been developing and implementing the Crisis Response Network (CRN) programme. This has been set up in response to the lack of general provision of support to seafarers and their families in times of crisis, and also due to the lack of provision of crisis preparation and response training for seafarers. The CRN programme includes in-depth pre-departure training, increased knowledge of the key stakeholders during crisis situations, and information on valuable coping mechanisms that enable increased resilience and recovery from maritime trauma. Due to the increase in pirate activity and the rise in the number of crises at sea in the Asia region, we have trained a further 20 responders across this region, including nine in India, two in Singapore, one in Myanmar, four in the Philippines and four in Indonesia. In 2017 we launched a new Crisis Response Network, based from the Philippines, that integrated with the existing networks in Africa and Europe. This extension has enabled us to coordinate our response to piracy, abandonment, incidents and accidents


ANNUAL REPORT AND ACCOUNTS 2017

across the world in collaboration with key partners with the aim of ensuring a seafarer-centred response and endto-end support. The Crisis Response Network now comprises three regional hubs, located in Africa, Asia and Europe. Each hub delivers a different and complementary set of activities and support in response to crises within its individual cultural setting. Together, they benefit survivors on a global scale.

centre access these facilities with approximately 1,000 eye tests and 300 hearing tests. 4. IT suite projects Sailors’ Society continues to develop innovative ways of improving communication between chaplains, seafarers, seafarers’ families and its Head Office. The result has been the creation of new Ship Visitor and Wellness at Sea apps, which facilitate communication with the chief aim of enhancing the welfare support offered to seafarers and their families.

WELLNESS AT SEA TRAINING

All hubs provide the following services: • Tracking and monitoring of piracy incidents • Raising maritime community awareness of mental health, stress and trauma, the importance of training and in-depth understanding of those concepts as well as coping techniques • Combatting stigma related to mental health issues caused by traumatic incidents, by raising awareness through training • Suicide prevention training • Case management • Communication with agencies. In 2017, the estimated number of seafarers assisted in the three regional hubs was 740. 3. Eye and ear testing equipment, Deendayal (formerly known as Kandla ), India This project started in the latter half of 2015. The primary aim of the project was to improve seafarers’ physical health through early identification of eye or ear problems. Seafarers visiting the centre at Deendayal can access this free service during their spare time in the port. To date an average of 58 per cent of seafarers visiting the

The Ship Visitor app enables port chaplains to connect, report and analyse data on how they are helping seafarers in real time. To provide continuity of care and assistance, chaplains in other ports can access the data, subject to confidentiality and data protection policies. This ensures that the best care is delivered to seafarers by facilitating a connection between chaplains and Head Office support staff.

EAR AND EYE TESTING , DEENDAYAL

The app and back office system continue to be well used by other organisations and our own chaplains across the globe. The latest software release appending the last visit report to the ship’s record within the app has been well received. We have more than 340 users across ICMA who have created more than 54,000 status reports, visited more than 15,500 ships and 404,000 seafarers. Sailors’ Society has more than 80 users on the system. Our crew data capture facility continues to grow; we now have crew reports on 9,860 ships, which equates to 18 per cent of the world’s shipping fleet. This number rises by around 120 ships per week.

WELLNESS AT SEA APP

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SAILORS’ SOCIETY

PROGRAMME FUTURE PLANS In line with our commitment to provide international chaplaincy and welfare support where it is most needed, we aim to expand our chaplaincy operations during 2018, which is our 200th anniversary. We will appoint new chaplains in locations where support is currently limited or non-existent with particular focus on China and the Americas. Additionally, we will continue to develop our affiliate programme to promote closer working and improved support around the world.

We strive towards a fully flexible and balanced chaplaincy and welfare service, continuing to move away from traditional centre-based ministry and seeking innovative ways of delivering our service and further developing digital chaplaincy services.

Through 2018 we also plan to build additional boats to help more seafarers’ children get to school safely and on time, as well as building and equipping library boats to take the love of reading to children who do not readily have access to books.

EDUCATION During the year we will continue our scholarship programme in the UK, Singapore, Greece, the Philippines and Indonesia, providing access to education for intending seafarers across a range of roles and disciplines.

POVERTY AND DISTRESS Project development continues to be driven primarily by the needs of our beneficiaries. Our aims are to reduce levels of poverty and distress and ensure that the quality of life for seafaring families continues to improve.

We will look for partnership opportunities in North and South America, making Sailors’ Society’s range of services more readily available in these regions.

We intend to develop our digital resources for seafarers and their families, providing helpful content and information tailored to address the concerns of industry leaders about the welfare of their crews. Additionally, we will conduct and publish the findings of the Wellness survey in collaboration with Yale University. These materials will be designed to encourage conversation and discussion between crew members, as well as employers and the shipping industry in general, creating a sense of community and relieving the isolation of seafarers at sea.

Part of our bicentennial celebrations include holding a chaplains’ world conference to deliver essential training and development for our team of chaplains, as well as the opportunity to participate in our 200th anniversary celebration service in Southwark Cathedral in April 2018.

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We will maintain funding to projects that support schools, medical centres and transport as these elements provide the foundations upon which the wellbeing and quality of life for seafarers and their families are improved. We will be extending these projects to Indonesia. The Leith Aged Mariners’ Fund will remain under the management of Sailors’ Society, providing regular financial support for ex-seafarers and relief from the burden of poverty. As the assets of the fund are far in excess of what is needed to support


ANNUAL REPORT AND ACCOUNTS 2017

We will maintain funding to projects that support schools, medical centres and transport as these elements provide the foundations upon which the wellbeing and quality of life for seafarers and their families are improved.

existing beneficiaries for the rest of their lives and, because concerted efforts to seek new beneficiaries have proved fruitless, we intend to apply to OSCR to merge the fund into Sailors’ Society Scotland so that excess funds can be applied towards other beneficiaries. Likewise, we will continue our work at the Sir Gabriel Wood’s Mariners’ Home for retired seafarers, helping to build a sense of community and relief from distress, loneliness and isolation. THE SCHOOL BOAT PROJECT

HEALTH AND WELL-BEING PROJECTS The Wellness programme will continue to develop and we have plans to set up a Wellness Institute, as well as host another Wellness at Sea conference in London in 2018. Furthermore, we will set up a health clinic in Jakarta for seafarers, as well as run basic health checks in four ports in Indonesia. The services of the Mobile Medical Unit and the Counselling Centre in Chennai will be developed, and the range of services extended. Plans are also well underway for the expansion of the Crisis Response Network into North and South America. SCHOLARSHIP PROGRAMME, SINGAPORE

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SAILORS’ SOCIETY

Media and Advocacy ACHIEVEMENTS In 2017, we built upon Sailors’ Society’s profile further through marketing, media, digital media and advocacy. Our media exposure across newspapers, television, radio, web and trade trumped the previous year’s success and saw journalists report on a wide range of our work from crisis response and education to our history and coffee. The year also saw us broaden our advocacy approach to start engaging with politicians and young people as well as churches. DIGITAL We launched our new public-facing 90 per cent messaging with a threeweek social media campaign. The aim was to collect GDPR compliant data to increase our database and we collected 3,500 compliant email addresses during that time. The campaign was aimed at raising awareness among the general public of their reliance on seafarers for 90 per cent of the things they use everyday, as a foundation for their understanding of the need for Sailors’ Society and why they should care. We have also learned a great deal in terms of the content order and timing of issue to maximise

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the number of people reading our monthly digital newsletter over the year and have seen the number of subscribers increase by 68 per cent over that time. STORY TELLING Stories are at the heart of all we do and are used by the Development team and Programme as well as Media and Advocacy to raise vital funds and awareness of the work we do. At the beginning of the year, we organised a translator and videographer in Indonesia and interviewed seafarer Adi Manurung by Skype – Adi was one of 26 crew members from the Naham 3, who had been released after being held hostage for nearly five years by Somali pirates. The story was picked up by the BBC and Newsweek in America. We also used a film crew in India for a five-day story gathering trip, working with our chaplains to capture case studies of families they are helping, on camera. One of these was the distraught family of the cook from the Seaman Guard Ohio crew, imprisoned in India and acquitted after a four-year legal battle. We

filmed the reunion as he was released and use the story as an example of the many cases of imprisoned seafarers and their families supported by our Crisis Response Network. The video we managed to collect enabled us to produce our first video impact report, which went down well with shipping companies at events through the year. We also found a British seafarer happy to film ‘life at sea’ for us as he joined his first ship, so we gave him a GoPro and training. As part of our 200th anniversary celebrations in 2018, we have started writing a book featuring 200 stories from the sea, taken from our archives. OPPORTUNITIES The 30th anniversary of the Herald of Free Enterprise disaster saw almost more interview requests by the media than we could cope with. In just a few days we appeared on the BBC, ITV and in national newspapers, local newspapers across the country and international news agency feeds.


ANNUAL REPORT AND ACCOUNTS 2017

OHIO CREW MEMBER REUNITED WITH HIS FAMILY

ADVOCACY During 2017, we began to broaden our advocacy approach to include young people and Parliament. Our new partnership scheme with schools called School Connect was established and plans for engaging with politicians and running campaigns to improve the lives of seafarers as well as to encourage awareness and donations were drafted. Engagement with churches continued in earnest and we launched our Matthew 25 campaign, aimed at recruiting individual givers among our Christian audience.

FUTURE PLANS 2018 is a massive chapter in the history of Sailors’ Society and we will seek to capitalise on the anniversary to further deepen relationships with the media, Parliament, the industry and schools and broaden awareness among the public. DIGITAL We are planning to use our social media channels to share happy birthday messages from around the world in the lead-up to our big

MARKING THE 200 DAY COUNTDOWN TO OUR 200TH BIRTHDAY

birthday and will have an interactive journey through our 200 years on our website. A site will be developed to sell our 200 stories from the sea book online and we will be launching a Father’s Day site to run alongside our successful Sea Sunday site, offering similar resources to churches including sermon notes, video, PowerPoint slides and children’s resources.

OPPORTUNITIES Our 200th anniversary is a huge opportunity to shout about all we have done and continue to do and showcase our proud history to supporters, the industry, media and other key stakeholders. The service at Southwark Cathedral is a wonderful stage to present our story on and we also hope to have a reception in Parliament.

STORY TELLING Our chaplains have so many stories and 2018 saw many of them join us in London for our 200th celebrations. We plan to spend time with them, capturing as many of those stories as we can while they are here. We will also take the opportunity to give them basic training in photography and video to help us get the footage we need as a global organisation without the costs of hiring film crews.

ADVOCACY We will be building relationships with MPs and Peers through meetings in Westminster and in constituencies, taking MPs ship visiting with our chaplains around the UK and holding our first reception in the House of Commons. The team will consult with academics and industry figures on potential campaign subjects for us to garner support and form a skilled steering group. We aim to launch our first campaign by the end of 2018 as a way of steering us out of the 200th celebrations into the future.

The book – 200 Stories from the Sea – will be launched around our anniversary celebrations and we will take every opportunity to talk about the stories in there, showcasing the variety and impact of our work over our history.

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SAILORS’ SOCIETY

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ANNUAL REPORT AND ACCOUNTS 2017

DEVELOPMENT (INCOME GENERATION) ACHIEVEMENTS Our aim is to build thriving relationships with our donors and supporters to help build long lasting partnerships for the future, so that we can diversify our income to fund our programme delivery supporting seafarers at home, in port and at sea. The Development department is a multifaceted team, with overall responsibility for generating income through fundraising and commercial operations. We began 2017 with a restructure of the department and the formation of Head of Fundraising and Commercial Manager posts. PARTNERSHIPS We are indebted to the many corporate partners who support our work practically and financially. We are extremely grateful for the continued support of our Wellness at Sea programme from Euronav, Rightship and UKP&I Club through this year, with their ongoing commitment promised in 2018. We would also like to extend our thanks to Lloyd’s Register, which has now supported us for nine consecutive years and continues to do so. Our thanks also go to

Clarksons, which supported the launch of our Mobile Medical Unit in Chennai and Bernard Schulte Shipmanagement, which has supported development work on the Wellness at Sea app during the year. EVENTS We are very grateful for each sponsor, participant and volunteer that generously gives through supporting our events. Thank you to Cargill, headline sponsor of our Asian Challenge in April, where 75 individuals climbed Mount Fansipan in Sapa, Vietnam. With its support and the contribution of other sponsors, including Rio Tinto and Taylor Maritime, the event raised income of £244,000. In October we held our annual trek in Hong Kong, headline-sponsored by Clarksons Platou. With additional sponsorship from Chubb Insurance, West of England P&I and Valles Steamship Co Ltd, the event attracted 54 participants and raised income of £35,000. A special mention goes to Emma (Clarksons), Jessica (Telemar) and Vanessa (Latitude Brokers) who formed the organisational group in Hong Kong.

INDIVIDUAL We remain very thankful for the number of individuals who support Sailors’ Society in so many different ways, from giving and raising funds to donating goods. COMMERCIAL In May our first Commercial Manager joined the organisation, taking responsibility for our BySea coffee range. In June we launched four new coffees to take the range to six products from around the world that come to the UK by sea. We also launched our blends of coffee in Nespresso pods and developed an online subscription service. A further highlight was the opening of our BySea Coffee Lounge in March and a marked increase of attendance at shows, festivals and exhibitions with our mobile coffee shop – a converted Land Rover Defender christened as MV Javanaut following a competition to identify a suitable name. RETAIL 2017 was extremely busy for our retail network as we opened charity shops in Eastleigh, Salisbury,

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SAILORS’ SOCIETY

DEVELOPMENT (INCOME GENERATION) Poole and Southampton. Our new format shops are intended to look and feel different to other charity shops, by standing out as looking, feeling and smelling good. We have been overwhelmed by the positive response all the new shops have received. It will take a bit of time to establish these new shops, but we have high hopes for the future. Sue Cook retired as our shop manager in Hull after 15 years of service. With the lease ending in 2017 the decision was taken to close the shop to concentrate efforts on the south coast – with the exception of Aberdeen, where the shop continues to go from strength to strength.

FUTURE PLANS We’ve got ambitious plans for the future to grow and diversify our income to enable our Programme team to reach more seafarers, their families and communities. PARTNERSHIPS Inmarsat agreed to be headline sponsor of our second Wellness at Sea Conference as well as funding some joint research in to the

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connectivity of seafarers at sea. We remain very thankful for Inmarsat’s support and commitment to our work and look forward to working together in the coming years as agreed. At the same time we continue to expand our reach with corporate supporters outside of the shipping industry, which remains a key objective for the partnerships team. We’ll also be increasing our reach by employing our first overseas team member. COMMUNITY AND EVENTS We are excited to introduce new challenges in 2018, including trekking the Great Wall of China and kayaking Loch Ness. Having assessed our events calendar through 2017, we intend to adapt our programme for 2018 onwards, including reducing our expenditure on larger events and investing in community fundraising across the UK. INDIVIDUAL Our increased activity in the community through fundraising, festivals, events and charity retail will, we hope, grow our individual giving network. Individual giving

remains an important plan for the future, with our inspired gift platform launching in 2018. We also intend to expand our payroll giving as well. COMMERCIAL In 2018 we plan to launch a special 200th anniversary blend of BySea coffee, begin international shipping of our coffee products and have our Land Rover at even more events. BySea is allowing us to reach a new audience and share with them the need to support seafarers and their families around the world. We are also looking to launch new products to complement our coffee range. RETAIL We’ll continue to expand our network of shops across the south coast, with plans to add at least two new units in 2018.


ANNUAL REPORT AND ACCOUNTS 2017

MOUNT FANSIPAN IN SAPA, VIETNAM

BYSEA COFFEE LOUNGE

HONG KONG TREK

MV JAVANAUT

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SAILORS’ SOCIETY

financial review OVERVIEW In accordance with the Trustees’ previous decision to draw down on the Society’s reserves to fund and expand its charitable output, the group deficit for the year before investment gains is £2,926,000. There was a deficit of £1,349,000 in 2016, which when adjusted for exceptional items (property sales, Leith Aged Mariners’ Fund liability reduction and pension liability credits), gives an adjusted deficit for that year of £1,956,000 for comparison. Investment gains total £744,000 of which £88,000 was realised on the sale of stocks and shares during the year.

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Overall the gains on investments have reduced the deficit to £2,182,000 and the group net assets now stand at £14,429,000 down from £16,611,000 in 2016. The cashflow statement shows net liquidations of investments of £1,847,000 during the year and a net cash outflow of £ £517,000 with year end cash reserves standing at £945,000, down from £1,462,000 the previous year. Total income was £3,153,000 compared to £3,390,000 in 2016 (as adjusted to exclude exceptional fixed asset disposal surpluses), a reduction of seven per cent.

Total expenditure was £6,079,000 compared to £5,346,000 in 2016 (as adjusted for exceptional costs mentioned above), an increase of 14 per cent. The split of income is similar to 2016 with income from donation sources and legacies increasing its share by five per cent at the expense of a reduction in share by three per cent of retail, events/commercial activity and one per cent each from investment and charitable activity income. In terms of costs compared to 2016, charitable expenditure reduced by four per cent as a proportion of the total with fundraising costs increasing by the same amount as a result of new investment in fundraising and commercial initiatives.


ANNUAL REPORT AND ACCOUNTS 2017

HOW WE RAISED OUR FUNDS

HOW WE SPENT OUR FUNDS

41% Donations & grants 16% Fundraising events, sponsorship & commercial 16% Investment income 13% Legacies 8% Charity shop income (retail) 6% Charitable activities

74% Fundraising 26%

Charitable activities

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SAILORS’ SOCIETY

REVIEW OF INVESTMENT PERFORMANCE In managing our financial reserves and regularly assessing market risk our Finance Committee draws up the investment policy and we review this annually. The Board endorses the recommended asset mix and the class weighting and after review approves any necessary policy change. Our investment strategy is to accept a level of medium risk with a balance sought between realising a target income and achieving capital growth. Investments are divided between equities, bonds, property and cash. Investec Wealth and Investment Limited actively manages our main and subsidiary portfolios while Cazenove Capital Management manages our investment in its Schroder Charity Multi-Asset Fund. Updates on the value of the portfolio are provided to us quarterly and, in the case of the main and subsidiary portfolios, details of purchases and sales are given to us when they occur. Each investment portfolio manager is required to attend one meeting of our Board annually and to attend a separate meeting of the Finance and General Purposes Committee. We discuss the performance of the investments at these meetings, the prevailing and anticipated economic conditions, a forecast of future trends and we look at our future cash requirements to be funded by these investments.

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Investec managed funds (£5.6 million) The total return for invested funds managed by Investec during the year was: General fund Leith Aged Mariners’ Fund US Dollar Fund

YEAR LAST THREE YEARS Actual Benchmark Actual Benchmark +12.9% +10.0% +35.2% +31.4% +9.3% +7.6% +25.1% +22.2% +13.7% +13.8% +24.1% +24.3%

Investments outperformed the benchmarks during the year in two out of the three funds and the remaining fund’s result was very close to the benchmark. The three year compounded result has improved compared to last year and is now ahead of the benchmark for two out of the three funds and again is very close to benchmark on the remaining fund. The unrealised foreign exchange loss on USD investments of £38,000 is not included in the above results.

The Schroder Charity Multi-Asset Fund (£4.5 million) The fund is a ‘pooled investment’ vehicle. The investment mix is determined by the fund manager and based upon tactical ranges for the different investment types. The fund’s total return target is the rate of inflation plus four per cent over an economic cycle (typically five to seven years) while aiming to meet this target with around two-thirds of equity market volatility. A total return of 7.9 per cent was achieved in the year against the benchmark of 8.0 per cent with 25.0 per cent achieved cumulatively over the last three years (inflation + four per cent: 21.5%).


ANNUAL REPORT AND ACCOUNTS 2017

REVIEW OF THE LEVEL OF FINANCIAL RESERVES Our Reserves Policy Reserves are needed to bridge the gap between the spending of income and the receiving of income and to cover unplanned expenditure and any other contingencies arising. The Trustees consider that, based on the current level of activity of the Society, reserve levels should be maintained at a level of between 24 and 36 months’ expenditure in order to provide the appropriate level of financial resource in this respect so that our core activities can continue during a prolonged period of unforeseen difficulty. Compliance with this policy is regularly reviewed by the Finance Committee and adjusted if necessary. To achieve this level of reserves the Society is investing in charitable programme and development of sustainable income over the coming years and has designated a proportion of its reserves to a Strategic Fund that matches the predicted investment in these areas over the next five years. A Capital Fund has been designated to meet multiyear capital investments, where the Society is financially committed to such expenditure. A further designation has been made in respect of retirement provision for overseas staff. With continuing uncertainty about levels of achievable income we believe controlled drawdown of our reserves to fund any future expansion of our charitable work is appropriate for the Society’s future.

Reviewing the Reserves Policy We review our reserves policy annually in conjunction with setting our budgets and reviewing progress against our strategic plans. We discuss the levels of realisable reserves, any major commitments to be financed by the Society and our future obligations. We consider the risks to future income, the level of predicted expenditure and the impact of any adverse effect on investment fund movements. Looking ahead, we recognise the need to balance the requirement to fund our existing level of work for today’s beneficiaries with our desire to progress the future extension of our charitable work to more world ports and the substantive work to implement projects in seafaring communities to improve the lives of our beneficiaries.

Level of Reserves Held At the end of 2017 our total reserves were £14.4 million. The endowment and restricted funds totalled £2.8 million. The remaining funds are unrestricted at £11.6 million and these contained fixed assets used in the charity of £1.7 million and designated funds of £7.4 million. Allowing for this, free reserves stood at £2.5 million, which equates to seven months of total unrestricted expenditure. This is below the range of 24 to 36 months as set out in the policy, and the intention is to replenish free reserves through the successful delivery of the strategic plan over the next five years. If circumstances require additional resource over and above the level of the available free reserves the board may have to divert funds designated for delivery of the strategic plan.

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SAILORS’ SOCIETY

PRINCIPAL RISKS AND UNCERTAINTIES We operate a formal risk management process where the Trustees and SLT together identify and review the main risks to the Society, their probability of occurrence, the possible impact and the consequent actions necessary to manage, reduce exposure, or eliminate the risk. The Risk Register is reviewed annually by the Trustees, kept under review by committees quarterly and SLT monitors risk on a daily basis, updating the register as appropriate.

FINANCIAL RISKS The main financial risk to the Society is having enough funds readily available to meet our planned operational and administrative needs to deliver our services to our core beneficiaries. We believe that maintaining readily realisable free reserves at the level stated in this report will provide sufficient resources in the event of any unplanned, adverse conditions arising. The likelihood of this main risk occurring is affected by a number of other subsidiary risks such as:

The main risk areas are: • Financial (including money laundering, investment risk and risk to revenue income streams); • Operational (including personnel). The following subsidiary risk areas can have both a financial and operational effect: • Legal and statutory (including health and safety); • IT systems integrity and resilience, database backup and data protection; • Society reputation.

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1. Diminishing appetite for participants taking part in our fundraising events; 2. Over-reliance on a number of key sponsors and supporters; 3. Circumstances out of our control affecting the ability of supporters, primarily in or related to the shipping industry, to donate to us (e.g. economic downturn); 4. Reduction in income and capital returns caused by a decline in the stock market or in other investment portfolios. In relation to risks one to three, the Society has undergone a fundraising strategy review with the aim of diversifying its income streams to prevent over-dependency on any one sector. In relation to risk four, the Society has split its listed investments between two investment houses; one providing the traditional model of portfolio and the other being a structured product which aims to achieve above inflation returns while seeking to do this with reduced volatility compared to equity markets.

OPERATIONAL RISKS Operational risks run across all areas of activity - predominantly Programme and Fundraising – and the main risks have been identified as: 1. Liabilities resulting from safeguarding, health and safety and non-compliance for past, present and future beneficiaries; 2. Death or injury to beneficiaries or fundraising event participants resulting from accidents; 3. Inadvertent contravention of overseas fundraising laws and financial/tax compliance of overseas fundraising and our employees operating overseas. In relation to risk one, the Society has taken out appropriate insurances to cover public indemnity, provides appropriate training and guidance to mitigate the risk of occurrence and carries out appropriate background checks on new employees upon recruitment. In respect of risk two, participants are given pre-event training on safe practice and guidance on how to avoid injury. The Society takes out specialist event insurance and medical professionals are retained in the event of emergency. The Society aims to identify potential problems of overseas fundraising laws and tax compliance during the event planning process by taking professional advice to mitigate or avoid the effects of risk three.


ANNUAL REPORT AND ACCOUNTS 2017

STATEMENT OF THE FINANCIAL DUTIES AND RESPONSIBILITIES OF TRUSTEES Company law requires that the Trustees prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Society company and the Society group as at the balance sheet date and of its net incoming resources and application of those resources, including the net income and expenditure of the group for the financial year. In preparing these financial statements the Trustees are required to: select suitable accounting policies and apply them consistently, observe the methods and principles in the Charities SORP, make judgments and estimates that are reasonable and prudent and prepare the financial statements on the going concern basis, unless it is not appropriate to assume that the charitable company will continue on that basis. We also state here that applicable accounting standards have been followed subject to any material departures being disclosed and explained in the financial statements.

As Trustees (who are also the directors of Sailors’ Society for the purpose of Company Law) we are responsible for preparing this annual report and the associated financial statements in accordance with applicable law and accounting standards of the United Kingdom – known as United Kingdom Generally Accepted Accounting Practice. We are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Society. They should enable us to ascertain its financial position and to ensure that we comply with the Companies Act 2006 and with the requisite statutes and other charity and company legislation as required. We are responsible for safeguarding the assets of the Society and for taking all reasonable measures to detect and prevent fraud and any other irregularities that may arise. AUDITORS In September 2017 the members (Trustees) resolved to appoint Mazars LLP as auditors, replacing Saffery Champness LLP. A resolution to appoint Mazars LLP as our auditors for a further year will be proposed at the General Meeting to be held on 24 September 2018.

STATEMENT OF DISCLOSURE BY TRUSTEES TO THE SOCIETY’S AUDITOR In so far as the Trustees are aware at the time of approving our Trustees’ Annual Report: • There is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group’s auditor is unaware, and •T  he Trustees, having made enquiries of fellow directors and the group’s auditor that they ought to have individually taken, have each taken all steps that he is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. This report, including the strategic report, was approved by the Trustees on 24 September 2018 and signed on their behalf by:

Alastair Fischbacher Chairman of the Board of Trustees

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SAILORS’ SOCIETY

Independent auditor’s report to the members of Sailors’ Society OPINION We have audited the financial statements of Sailors’ Society (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 December 2017 which comprise the consolidated statement of financial activities, the consolidated and society balance sheets, the consolidated cashflow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements:

in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 December 2017 and of the group’s income and expenditure for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006.

• the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described

OTHER INFORMATION The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report

38

thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: • the information given in the Annual Report which includes the Strategic Report and the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and


ANNUAL REPORT AND ACCOUNTS 2017

• the Strategic Report and the Directors’ Report included within the Annual Report has been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In light of the knowledge and understanding of the group and the parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included within the Annual Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: • adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the parent charity financial statements are not in agreement with the accounting records and returns; or • certain disclosures of Trustees’ remuneration specific by law are not made; or • we have not received all the information and explanations we require for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully in the Trustees’ responsibilities statement set out on page 37, the Trustees (who are also the directors of the

parent charity for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc. org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. USE OF THE AUDIT REPORT This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body for our audit work, for this report, or for the opinions we have formed.

Jonathan Marchant (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor 5th Floor Merck House, Seldown Lane, Poole, BH15 1TW Date: 24 September 2018

39


SAILORS’ SOCIETY

Consolidated Statement of Financial Activities for the year ended 31 December 2017 (incorporating an Income and Expenditure account)

Notes

Unrestricted

Restricted

Endowment

Total

Funds

Funds

Funds

2017

2016

£000s

£000s

£000s

£000s

£000s

Income and endowments from: Donations and legacies

2

311

441

-

752

656

Charitable activities

3

98

1,182

-

1,280

1,410

Other trading activities

4

716

-

-

716

857

Investments

5

384

16

-

400

459

Other

6

5

-

-

5

343

1,514

1,639

-

3,153

3,725

Raising funds

1,578

-

-

1,578

1,084

Charitable activities

2,786

1,650

65

4,501

3,990

4,364

1,650

65

6,079

5,074

(2,850)

(11)

(65)

(2,926)

(1,349)

723

10

11

744

1,188

(2,127)

(1)

(54)

(2,182)

(161)

-

(79)

79

-

-

Net movement in funds

(2,127)

(80)

25

(2,182)

(161)

Total funds brought forward

13,783

1,374

1,454

16,611

16,772

Fund balances carried forward

11,656

1,294

1,479

14,429

16,611

Total Expenditure on:

Total

7

Net expenditure before investment gains Gains on investments

Net expenditure Transfers between funds

18(f)

The statement of financial activities contains all gains and losses for the year and all activities relate to continuing operations. The net expenditure for the purposes of the Companies Act 2006 comprises the net expenditure for the year adjusted for realised gains on investment assets and excluding the net expenditure on the permanent endowment fund and was £2,773,000 (2016: £1,355,000).

40


ANNUAL REPORT AND ACCOUNTS 2017

Consolidated and Society Balance Sheets at 31 December 2017 Consolidated

Notes

The Society

2017

2016

2017

2016

£000s

£000s

£000s

£000s

Fixed assets Tangible assets

11

3,357

3,148

2,996

2,903

Investments

12

10,143

11,198

9,688

10,781

Investment in subsidiary undertaking

20

-

-

5

4

Freehold investment properties

13

475

561

475

561

Interest free loans

14

16

16

16

16

13,991

14,923

13,180

14,265

17

7

5

3

Current assets Stocks Debtors

15

597

949

763

815

Cash at bank and in hand

945

1,462

439

797

Total current assets

1,559

2,418

1,207

1,615

(519)

(636)

(371)

(521)

1,040

1,782

836

1,094

15,031

16,705

14,016

15,359

(602)

(94)

(517)

-

14,429

16,611

13,499

15,359

Liabilities Creditors: amounts falling due within one year

16

Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year

Net assets

17

Company number 86942

41


SAILORS’ SOCIETY

Consolidated and Society Balance Sheets at 31 December 2017 Consolidated Notes

The Society

2017

2016

2017

2016

£000s

£000s

£000s

£000s

The funds of the charity Capital funds Endowment funds

18(a)(e)

- Revaluation reserve

753

752

679

688

- Other endowment

726

702

482

527

1,479

1,454

1,161

1,215

Income funds Restricted funds

18(b)(e)

- Revaluation reserve

44

35

-

-

1,250

1,339

451

425

1,294

1,374

451

425

- Revaluation reserve

3,082

3,158

3,082

3,158

- Other general charitable

(301)

9,073

(146)

9,071

7,162

-

7,162

-

132

-

132

-

- Other restricted

Unrestricted funds General charitable funds

Designated funds

18(c)(e)

18(d)

- Strategic Fund - Capital Fund - Overseas Staff Pension Fund - Fixed Asset Fund - Educational Fund

Non charitable funds

18(c)

50

-

50

-

1,684

1,500

1,570

1,451

37

39

37

39

9,065

1,539

8,951

1,490

(190)

13

-

-

11,656

13,783

11,887

13,719

14,429

16,611

13,499

15,359

The accompanying notes are an integral part of the financial statements. The accounts were approved by the Board of Directors on 24 September 2018 and signed on its behalf by: Alastair Fischbacher Chairman

Company number 86942

42


ANNUAL REPORT AND ACCOUNTS 2017

Consolidated Cashflow Statement For the year ending 31 December 2017 2017 £000s

2016 £000s

Net cash outflow from operating activities

£000s

£000s

(2,773)

(2,576)

Cash flows from investing activities Interest and rents received Dividends received

28

30

378

430

Payments to acquire tangible fixed assets

(528)

(311)

Purchase of investments

(649)

(525)

5

757

2,496

2,534

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

Net cash provided by investing activities

1,730

2,915

Cash flows from financing activities Net cash inflows from new borrowing

542

5

Capital repayments

(8)

-

Interest paid

(8)

526

5

Change in cash and cash equivalents in the reporting period

(517)

344

Bank and cash balances at 1 January 2017

1,462

1,118

945

1,462

Bank and cash balances at 31 December 2017

Reconciliation of changes in resources to net cash outflow from operating activities Income (excluding investment income)

2,753

3,266

Expenditure (excluding interest payable)

(6,069)

(5,074)

Changes in resources before revaluations

(3,316)

(1,808)

Depreciation Unrealised foreign exchange losses/(gains) on investments Increase in stock Decrease/(increase) in debtors Decrease in creditors Adjustment to Leith Aged Mariners’ Fund liability Deficit/(surplus) on disposal of fixed assets

Net cash outflow from operating activities

307

269

38

(133)

(10)

(1)

350

(351)

(139)

(113)

(10)

(104)

7

(335)

(2,773)

(2,576)

945

1,462

Analysis of cash and cash equivalents Bank balances and cash in hand

43


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 1. Accounting policies Sailors’ Society is a company limited by guarantee incorporated in England and Wales. The registered office is Seafarers’ House, 74 St Annes Road, Southampton, SO19 9FF.

c) Company status The Society is a company limited by guarantee. The members of the Society are the directors. In the event of the Society being wound up, the liability in respect of the guarantee is limited to £1 per member.

a) Basis of preparation The financial statements have been prepared on a going concern basis and under the historical cost convention, other than Sir Gabriel Wood’s Mariners’ Home, listed investments and investment properties which are included on a market value basis. The financial statements have been prepared in accordance with the Charity Commission Statement of Recommended Practice Accounting and Reporting, by provisions of the Charities SORP (FRS102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (effective 1 January 2015) and the Companies Act 2006. The Trustees confirm that the charity is a public benefit entity, as defined by FRS102. The functional currency of the Society is Pounds Sterling (GBP) rounded to the nearest thousand.

d) Fund accounting Unrestricted funds are available for use at the discretion of the directors in furtherance of the general objectives of the Society.

b) Group financial statements These financial statements consolidate the results of the Society and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis using uniform accounting policies as set out below. The Society has availed itself of Paragraph 4(1) of Schedule 1 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and has adapted the Companies Act formats to reflect the special nature of the Society’s activities. A separate detailed statement of financial activities and income and expenditure account (SOFA) is not presented for the charity itself following the exemption afforded by section 408 of the Companies Act 2006. The charity’s total income was £1,535,133 (2016: £1,850,743) and its total expenditure was £4,117,388 (2016: £3,361,906). Investment gains were £723,235 (2016: £1,160,795). This results in net expenditure of £1,859,020 (2016:£350,368).

44

Restricted funds are funds subject to specific restrictive conditions imposed by donors or through the terms of an appeal. The purpose and use of restricted funds is set out in the notes to the financial statements. Permanent endowment funds relate to Sir Gabriel Wood’s Mariners’ Home which is held in trust by the Society. The terms of the trust mean that the Home must be held indefinitely. Expendable endowment funds relate to the investments held by the Leith Aged Mariners’ Fund. Under the terms of the trust deed the capital as well as the income can be applied to the charitable purpose. Each of the above funds includes a revaluation reserve representing the restatement of certain assets at market values. e) Incoming resources All incoming resources are included in the SOFA when the Society is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: - Entitlement to legacy income is based on probate being granted before the year end. The amounts included as income are based on actual receipts or notification of intended payment in the following year. Where legacies have been notified to the Society but the criteria for income recognition have not been met, the legacy is treated as a contingent asset. These are disclosed in note 23.


ANNUAL REPORT AND ACCOUNTS 2017

- Voluntary income received by way of grants, donations and gifts is included in full in the SOFA when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the Society, are recognised when the charity becomes unconditionally entitled to the grant. Grants, where entitlement is related to performance, are recognised when the Society earns the right to the grant through performance of the specified activity. Provision has been made for Income Tax reclaimable at the year end. - Donated services, facilities and goods for internal use are included at the value to the Society where this can be quantified. Goods donated for resale in the Society’s charity shops are included as income when they are sold. The Society receives support from a wide variety of volunteers. It is not practical to place a value on the time volunteered by all these persons due to the variety of duties performed and the differences in time spent by each volunteer. - I ncoming resources from charitable trading activity and activities to generate funds are accounted for when earned. Fundraising events income is accounted for in the year in which the event takes place. Funds received in advance for future fundraising events are treated as deferred income within creditors and income owed or pledged but not yet received, is treated as debtors to the extent that it is recoverable. - Investment income is included when receivable. f) Resources expended Expenditure is accounted for on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates: - Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the Society’s charity shops. Costs paid in advance for fundraising events are treated as prepayments in debtors and are recognised in the SOFA in the year in which the event takes place.

- Charitable expenditure comprises those costs incurred by the Society in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Grants payable are accounted for when a legal or constructive obligation arises. A constructive obligation arises when the other party has a reasonable expectation of receipt. - Support costs are those functions that assist the work of the Society but are not incurred directly in connection with charitable activity. Support costs include back office costs, finance, personnel, payroll and governance costs. These costs have been allocated between the cost of raising funds and expenditure on charitable activities consistent with the use of resources, i.e. allocating property costs by space occupied, office facilities by head count and management and accounting support on a time spent basis. Where fundraising is part of a multi-purpose activity and promotes the charitable purpose, a proportion of those costs are allocated to the charitable activity. The basis of the split used is the estimated time spent on the activity. g) Tangible fixed assets and depreciation Tangible fixed assets costing more than £250 are capitalised. Depreciation is calculated to write off the cost or valuation of tangible fixed assets, other than freehold land, by annual instalments over their expected useful lives as follows: Motor vehicles - 33% of the reducing balance Furniture, fittings and equipment (including App IT expenses) - 25% of the reducing balance Short and long leasehold properties - period of lease Freehold buildings and Sir Gabriel Wood’s Mariners’ Home and Court - 2%-5% of building cost or valuation

45


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 App IT expenses, whilst in development, are not depreciated until the software is in use. Leasehold property alterations in progress, but not complete at the balance sheet date, are not depreciated. h) Fixed asset investments & investment management fees Listed investments have been stated at market value at the balance sheet date. Realised gains/(losses) are calculated as the difference between market value at the date of disposal and market value at the previous balance sheet date. Unrealised gains/(losses) are calculated as the difference between the market value at the balance sheet date and the market value at the previous balance sheet date (or date of acquisition if later). Investment management fees are accounted for as follows: General and endowment portfolios - percentage of the portfolio value on a quarterly basis shown under costs of generating funds in the SOFA. Schroder Charity Multi-Asset Fund - Management fees of the fund itself are calculated on a percentage of the portfolio value deducted from the market value of the fund on a daily basis and therefore effectively deducted from realised or unrealised gains or losses on investments. The fee element relating to client management services is a percentage of the portfolio value on a quarterly basis shown under costs of generating funds in the SOFA. Freehold investment properties for which fair value can be measured reliably without undue cost or effort on an ongoing basis, are measured at fair value annually with any change recognised in the SOFA. Investments in subsidiary undertakings are stated at cost less provision for permanent diminution in value. i) Stock Stock consists of goods for resale held at Head Office, seafarers’ centres and charity shops (where purchased for resale). Stock is valued at the lower of cost and net realisable value. Unsold donated items are excluded.

46

j) Pensions The Society operates a defined contribution group personal pension scheme with Aegon for the benefit of its UK based employees. Based upon gross salary, employees contribute at the rate of 4% net (5% including tax credit) and the Society at 10.75%. An alternative option exists following the introduction of Workplace Pensions in which both employees and the Society pay contributions of 1% of gross salary. Contributions are charged to the SOFA when due. Some employees, who are not eligible to join the above scheme, have personal pension plans into which the Society contributes under the terms of their employment contracts. k) Foreign currency translation Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the SOFA. l) Operating leases Rentals paid under operating leases, where substantially all the benefits and risks of ownership remain with the lessor, are charged against income on a straight line basis over the term of each lease. m) Preparation of the financial statements on a going concern basis The Society’s worldwide operations are complex and wide-ranging. The Society’s policy is to always ensure that adequate reserves are maintained to finance operations and to avoid any interruption of services to seafarers. A detailed review of the level of reserves is included in the Trustees Report annually. The group results show net expenditure of £2,182,000 and net cash outflows of £517,000. The Society’s listed investments are in liquid form and are of a sufficient size to fund this deficit and any deficits in the next year from the date of approval of these financial statements. On this basis the Trustees consider the Society to be a going concern.


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 n) Corporate taxation The Society is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. The Society is not exempt from certain taxes applicable to its overseas operations where charitable tax reliefs cannot be applied. o) Judgements in applying accounting policies and key sources of estimation uncertainty The Society applies judgement in relation to the recognition of legacy income in line with the stated accounting policy above. Judgement is also applied in the allocation of costs between the various activities of the Society. The method, as disclosed, is considered to be the fairest way to allocate shared costs between activities in a consistent manner. There are no other significant judgements or estimates in these financial statements. p) Financial instruments The Society has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial assets are recognised in the Society’s balance sheet when the Society becomes party to the contructual provisions of the instrument. Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition. Basic financial assets Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through the statement of financial activities are measured at fair value.

ther financial assets Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition. Impairment of financial assets Financial assets, other than those held at fair value through the statement of financial activities, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the statement of financial activities. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. q) Classification of financial liabilities Basic financial liabilities Basic financial liabilities are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through the statement of financial activities are measured at fair value.

47


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 Other financial liabilities Other financial liabilities are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method, with interest expenses recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Society after deducting all of its liabilities. Derecognition of financial liabilities Financial liabilities are derecognised when, and only when, the Society’s obligations are discharged, cancelled, or they expire.

48


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 Unrestricted

Restricted

Endowment

Total

Funds

Funds

Funds

2017

2016

£000s

£000s

£000s

£000s

£000s

2. Donations and legacies Donations and grants Telephone donor canvassing Legacies

160

334

-

494

409

10

-

-

10

45

141

107

-

248

202

311

441

-

752

656

43

-

-

43

37

55

-

-

55

67

-

1,182

-

1,182

1,306

98

1,182

-

1,280

1,410

198

-

-

198

167

518

-

-

518

690

716

-

-

716

857

360

16

-

376

425

22

-

-

22

28

2

-

-

2

6

384

16

-

400

459

Surplus on sale of functional fixed assets

-

-

-

-

335

Miscellaneous

5

-

-

5

8

5

-

-

5

343

3. Charitable activities Income from seafarers' centres and seafarers’ retirement facility Other programme related income Residential home fees and flat rental income

4. Other trading activities Charity shop income Fundraising events, sponsorship and commercial

5. Investment income Listed investments Property rents Interest receivable

6. Other income

49


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 7. Total expenditure Staff costs

Other direct costs

£000s

£000s

(Note 10)

Support costs

Governance costs allocation

2017

Total 2016

£000s

£000s

£000s

£000s

(Note 8)

Expenditure on raising funds Fundraising costs Charity shop costs

179

221

37

-

437

229

Fundraising events, sponsorship and commercial

257

367

108

5

737

581

436

588

145

5

1,174

810

192

30

71

3

296

323

30

2

-

-

32

46

222

32

71

3

328

369

Costs of generating voluntary income Other fundraising costs Telephone donor canvassing

Investment costs Investment management fees

-

38

-

-

38

38

Foreign exchange differences on investments

-

38

-

-

38

(133)

-

76

-

-

76

(95)

658

696

216

8

1,578

1,084

806

760

297

32

1,895

1,812

35

65

23

15

138

130

Leith Aged Mariners’ Fund commitment

-

-

6

2

8

27

Leith Aged Mariners’ Fund endowment adjustment

-

-

-

-

(111) 1,360

Expenditure on charitable activities Chaplaincy, welfare and projects Seafarers’ centres costs

Residential home and flat running costs

957

480

8

15

1,460

Contributions to partner organisations

5

76

35

10

126

140

408

262

173

31

874

793

-

-

-

-

-

(161)

2,211

1,643

542

105

4,501

3,990

Promoting the charitable purpose Release of pension liability

Governance

Support staff costs

50

5

42

66

(113)

-

-

2,874

2,381

824

-

6,079

5,074

421

(421)

3,295

403


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 7. Total expenditure (continued) Net incoming resources are stated after charging/(crediting):

2017

2016

£000s

£000s

Remuneration paid to the Society’s auditors: - audit fee - tax compliance services and other advice Remuneration paid to other auditors Operating lease rentals

- land & buildings

17

18

2

3

8

8

122

54

74

21

- equipment Mortgage interest payable

9

-

Deficit/(surplus) on disposal of fixed assets

6

(335)

Foreign exchange differences

64

(182)

Depreciation and impairment

307

269

8. Allocation of support costs

Basis of allocation

Premises running costs

Office facilities costs

Finance, accounting & IT

Management & audit

2017 total

2016 total

£000s

£000s

£000s

£000s

£000s

£000s

Floor area

Head count

Time spent

Time spent

Fundraising costs Charity shop costs Fundraising events, sponsorship and commercial

2

7

28

-

37

18

10

53

26

19

108

102

12

60

54

19

145

120

11

54

6

-

71

52

-

-

-

-

-

6

11

54

6

-

71

58

Costs of generating voluntary income Other fundraising costs Telephone donor canvassing

Charitable activities 12

67

161

57

297

253

Seafarers’ centres costs

Chaplaincy, welfare and projects

1

3

19

-

23

27

Leith Aged Mariners’ Fund

-

1

5

-

6

7

Residential home and flat costs

-

1

7

-

8

8

Contributions to partner organisations

1

4

11

19

35

44

23

66

8

76

173

134

37

142

211

152

542

473

Promoting the charitable purpose

Governance

2

8

32

24

66

68

62

264

303

195

824

719

51


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 9. Analysis of grants expenditure within charitable expenditure Grants to institutions £000s

Grants to individuals £000s

Support costs £000s

2017 £000s

2016 £000s

Operation of seafarers centres

24

-

2

26

46

Rebuilding seafarer communities

27

-

-

27

114

4

-

-

4

-

Chaplaincy

Collaborative working

23

-

-

23

3

Seafarer general welfare

30

34

7

71

34

Educational

37

118

6

161

114

145

152

15

312

311

Material grants made to institutions £10,000 and over, included in the above, were as follows: Within contributions to partner organisations (for seafarers’ welfare): 2017 £000s Sailors’ Society Southern Africa

- chaplaincy and regional management

2016 £000s 23

5

- crisis response (including piracy)

8

10

Sailors’ Welfare Association

Programme management in India

22

-

Aberdeen Seafarers’ Centre

Seafarers’ Centres - general purposes

10

10

Centres for Seafarers

Seafarers’ Centres - general purposes

-

14

Sea cadet programme - classroom construction, uniforms and tuition fees for 20 students

37

-

Rebuilding works and disaster preparation training in seafarer community in Bangladesh Construction of medical centres for seafarer community in Philippines

37

29

(10)

45

Within chaplaincy and welfare:St Nicholas Preparatory School, Tema, Ghana Habitat for Humanity

Bantayan and Bohol schools, Philippines

New IT and audio visual equipment for schools in seafarer community

-

18

Hammond Marine (UK) Ltd t/as Seawives

Development of website based support network for use by partners of seafarers to interact, particularly when seafarers are away at sea

-

19

18

27

145

177

Others £10,000 and under

52


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 10. Staff costs and numbers 2017

2016

£000s

£000s

Salaries and wages Social security costs

2,900

2,492

212

183

99

78

Pension costs Life assurance and medical insurance

44

38

Chaplains’ housing costs

40

33

3,295

2,824

71

50

Benefits in kind not included in the above Total pension contributions accrued and not paid at 31 December 2017 amounted to £18,180 (2016: £14,637). Total redundancy/termination payments were £11,320 and were paid in the year (2016: £34,939 paid in the year).

The total remuneration of the Senior Leadership Team, including benefits but excluding pension contributions, was £373,747 (2016: £391,109). The number of employees receiving total emoluments over £60,000, as defined for taxation purposes, were as follows : 2017

2016

Number

Number

£60,000 to £69,999

3

£70,000 to £79,999

1

-

£90,000 to £99,999

1

1

3

Pension contributions to the Society’s defined contribution scheme for the five employees above were £29,429 (2016: four employees £25,631). The average number of employees, calculated on a full time equivalent basis (including casual and part-time staff), analysed by function was: 2017

2016

Number Chaplaincy and welfare Seafarers’ centres

Number

50

47

9

9

Fundraising and charity shops

21

15

Residential home

42

45

Promoting the charitable cause

10

8

9

9

141

133

Management and administration of the charity

The average monthly head count during the year was 163 (2016: 155).

53


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 11. Tangible fixed assets a) Consolidated Sir Gabriel Freehold

Wood’s

Furniture

property &

Home &

Leasehold

fittings &

Motor

improvements

Court

property

equipment

vehicles

Total

£000s

£000s

£000s

£000s

£000s

£000s

Cost or valuation At 1 January 2017

1,469

1,685

311

721

589

4,775

Additions

-

70

248

146

64

528

Disposals

-

-

(2)

(61)

(25)

(88)

1,469

1,755

557

806

628

5,215

166

342

266

418

435

1,627

30

65

31

109

72

307

-

(1)

(54)

(21)

(76)

196

407

296

473

486

1,858

1,273

1,348

261

333

142

3,357

1,303

1,343

45

303

154

3,148

At 31 December 2017 Depreciation At 1 January 2017 Charge for year Disposals At 31 December 2017 Net book value At 31 December 2017 Net book value At 31 December 2016

Sir Gabriel Wood’s Mariners’ Home and Court were valued in January 2011 by Millar Surveying Services, Chartered Surveyors on an open market value for existing use basis. As the home is an historic building and the property is held in trust, it has been shown separately from other freehold property. If it had not been revalued it would have been included at the following amounts: 2017

2016

£000s

£000s

Cost

1,559

1,489

Depreciation

(890)

(835)

669

654

Net book value Compared to the depreciation calculated by reference to historical cost, the figure in the financial statements is greater by £9,716 (2016: £9,716).

2017 b) Capital Commitments (Group)

2016

£000s

£000s

Sir Gabriel Wood’s Mariners’ Home improvements and repairs

48

29

Motor vehicles

25

-

-

54

73

83

Leasehold property alterations

54


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 11. Tangible fixed assets (continued) c) The Society Sir Gabriel Freehold

Wood’s

Furniture

property &

Home &

Leasehold

fittings &

Motor

improvements

Court

property

equipment

vehicles

Total

£000s

£000s

£000s

£000s

£000s

£000s

Cost or valuation At 1 January 2017

1,469

1,540

255

526

481

4,271

Prior year adjustment

-

-

-

-

17

17

Additions

-

-

182

112

64

358

Group transfers

-

-

-

(1)

-

(1)

Disposals

-

-

(2)

(61)

(25)

(88)

1,469

1,540

435

576

537

4,557

166

325

247

273

357

1,368

-

-

-

-

17

17

30

54

19

88

61

252

-

-

(1)

(54)

(21)

(76)

196

379

265

307

414

1,561

At 31 December 2017

1,273

1,161

170

269

123

2,996

At 31 December 2016

1,303

1,215

8

253

124

2,903

At 31 December 2017 Depreciation At 1 January 2017 Prior year adjustment Charge for the year Disposals At 31 December 2017 Net book value

d) Capital commitments (Society only) At 31 December 2017 the Society had capital commitments of £25,048 (2016 - Nil). e) Assets not depreciated (Society and consolidated) The value of App IT expenses, in development, not depreciated was £6,550 (2016 - £4,550). The value of leasehold alterations and legal fees not depreciated was £nil (2016 - £34,895). f) Assets held on hire purchase agreements (consolidated only) The net book value of assets held on hire purchase agreements within furniture fittings & equipment was £2,997. (2016: £3,996). Depreciation during the year was £999 (2016: £999).

55


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 12. Fixed asset investments

a) Consolidated

Schroder

General

Fund

Fund

Endowment Fund

Total

£000s

£000s

£000s

£000s

Market value At 1 January 2017

5,207

5,809

182

Additions

229

406

14

649

Disposals

(1,078)

(1,240)

(4)

(2,322)

165

480

11

656

-

(38)

-

(38)

Market value at 31 December 2017

4,523

5,417

203

10,143

Historical cost at 31 December 2017

3,296

3,916

129

7,341

63

834

68

965

-

141

-

141

UK equity shares

1,466

2,539

112

4,117

Overseas equity shares

2,911

Unrealised gains on revaluation Unrealised foreign exchange differences

11,198

Listed investments UK fixed interest securities Overseas fixed interest

1,434

1,466

11

Property funds

425

228

6

659

Alternative investments

959

209

6

1,174

Cash

176

-

-

176

4,523

5,417

203

10,143

10,781

Market value at 31 December 2017 b) The Society Market value At 1 January 2017

4,972

5,809

-

Additions

221

406

-

627

Disposals

(1,077)

(1,240)

-

(2,317)

155

480

-

635

-

(38)

-

(38)

Market value at 31 December 2017

4,271

5,417

-

9,688

Historical cost at 31 December 2017

3,088

3,916

-

7,004

60

834

-

894

-

141

-

141

UK equity shares

1,384

2,539

-

3,923

Overseas equity shares

Unrealised gains on revaluation Unrealised foreign exchange differences

Listed investments UK fixed interest securities Overseas fixed interest

1,354

1,466

-

2,820

Property funds

401

228

-

629

Alternative investments

905

209

-

1,114

Cash

167

-

-

167

4,271

5,417

-

9,688

Market value at 31 December 2017

56


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 12. Fixed asset investments (continued) There were no investments in individual holdings at 31 December 2017 representing more than 5% of the value of the combined portfolio. The Schroder Fund is the Schroder Charity Multi-Asset Fund which is a Common Investment Fund. This investment forms part of the Society’s unrestricted funds. The consolidated total includes £251,281 in relation to restricted funds in the name of Sir Gabriel Wood’s Mariners’ Home.

13. Freehold investment properties Consolidated and the Society - at valuation

£000s

At 1 January 2017 Revaluation in the year

561 -

Disposals

(86)

At 31 December 2017

475

The valuation consists of: Freehold property - Beattie Rise, Hedge End, Southampton

475

The freehold property at Beattie Rise was valued at 31 December 2017 at £475,000 on an open market basis by the directors, based on advice received from local estate agents. The historical net book value of the properties is £77,062 (2016: £77,062).

57


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 14. Interest free loans Consolidated

The Society

2017

2016

2017

2016

£000s

£000s

£000s

£000s

16

Loans to joint operations

16

16

16

These loans are to finance the operations of the borrowers and are not repayable within twelve months.

15. Debtors Consolidated

Trade debtors

2017

2016

2017

2016

£000s

£000s

£000s

£000s

168

Amounts owed by subsidiary undertakings Other debtors, prepayments and accrued income

The Society

251

10

19

-

-

398

128

429

698

355

668

597

949

763

815

At the year end £322,686 was owed by Sailors’ Beneficial Enterprises Limited to Sailors’ Society. The Society has a floating charge to secure £30,000 of the loan.

16. Creditors: amounts falling due within one year Consolidated

Trade creditors

The Society

2017

2016

2017

2016

£000s

£000s

£000s

£000s

184

253

119

166

Bank loans

18

-

18

-

Taxes and social security

54

84

38

78

Pension contributions owed

18

15

18

15

Amounts owed to other funds

38

38

38

38

145

126

104

41

1

1

-

-

28

40

11

34

Other creditors and accruals Hire purchase Deferred income Amounts owed to subsidiary undertakings Grant commitments

-

-

25

52

25

80 52

Obligations for future payments under the

-

Leith Aged Mariners’ Fund (see note 17)

8

10

-

-

Federated Flexiplan pension scheme liability

-

17

-

17

519

636

371

521

18

-

18

-

Secured creditors

Amounts owed to other funds relates to the Macaulay Educational and Benevolent Trusts. These are trusts established under Canadian law and the amounts shown represent accumulated investment income collected by the Society on behalf of the fund Trustees. After the year end these amounts were gifted to the Society by the fund Trustees.

58


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 16. Creditors: amounts falling due within one year (continued) Deferred income relates to income received in 2017 for 2018 fundraising events and advance sponsorships at £23,697 (2016: £38,894) and rental income received in advance of £4,659 (2016: £1,400). All deferred income from 2016 was released to the SOFA in 2017.

17. Creditors: amounts falling due after more than one year Consolidated

Bank loan

The Society

2017

2016

2017

2016

£000s

£000s

£000s

£000s

517

-

517

-

82

90

-

-

3

4

602

94

517

-

517

-

517

Obligations for future payments under the Leith Aged Mariners’ Fund Hire purchase

Secured creditors

Assets held under hire purchase agreements are secured on the asset to which the agreement relates. Amounts payable in the next twelve months are shown as creditors due within one year. Consolidated

The Society

2017

2016

2017

2016

£000s

£000s

£000s

£000s

Future payments due Amounts payable between 1 and 2 years

42

2

40

-

Amounts payable between 2 and 5 years

123

5

120

-

Amounts payable over 5 years

586

-

586

-

751

7

746

-

(231)

(3)

(229)

-

520

4

517

-

3

4

-

-

517

-

517

-

520

4

517

-

Less: finance charges allocated to future periods

Hire purchase Bank loan

The bank loan was advanced in August 2017 and is repayable over 20 years at an interest rate of 4.19% p.a. fixed for a period of 10 years and renegotiable thereafter. The loan is secured on the freehold property at St Annes Road, Southampton.

59


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 17. Creditors: amounts falling due after more than one year (continued) Leith Aged Mariners’ fund commitment The obligations for future payments under the Leith Aged Mariners’ Fund were calculated on an actuarial basis to be £59,825 at 31 December 2017, using 2013-2015 life tables for Scotland supplied by the Office of National Statistics. The weekly payment is £12 with a further £12 given as a Christmas bonus in December. The annual cost is £636 per person. There were 13 beneficiaries at 31 December 2017. It is anticipated that the weekly payment level will increase at some point in the future in line with the other almonising societies. If the payment were £18 per week from 1 January 2018 the actuarial liability would be £89,737. The net assets of the fund at 31 December 2017 are £221,005. This is the maximum liability of the fund to its beneficiaries, the actuarial liabilities ranging from £59,825 to £89,737 based on a number of assumptions. The Trustees reopened the fund to new beneficiaries in 2016 but there has been no net increase in the number of beneficiaries since 1 January 2017. The Trustees plan to apply to the Office of the Scottish Charity Regulator (OSCR) for permission to widen the objects of the fund and to transfer it to Sailors’ Society Scotland. They may also consider whether an increase in the weekly payment can be made during 2018. Accordingly the fund liability has been reduced to £90,000 representing the higher end of the actuarial valuations mentioned above. Of this reduced liability, payments due to be made in the next year of £8,268 are included in creditors due within one year with the balance of £81,732 included as creditors due after one year. Movements in the net assets of the fund, including the reduction of the liability from £100,000 to £90,000, are reflected in the SOFA and include the movement in the value of investments during the year.

18. Reserves Movement in Funds (a) Endowments - consolidated

Balance

Incoming

1 January

resources

2017 Permanent endowments Sir Gabriel Wood’s Mariners’ Home

£000s

£000s

Expenditure,

Balance

gains, losses

31 December

and transfers

2017

£000s

£000s

1,343

-

5

1,348

111

-

20

131

1,454

-

25

1,479

Expendable endowments Leith Aged Mariners’ Fund (see note 17)

The Leith Aged Mariners’ Fund investments had realised gains and unrealised losses totalling £11,077 at 31 December 2017. These have been transferred to restricted funds as detailed in note 18 (e). Included within the above are the following movements on revaluation reserves: Leith Aged Mariners’ Fund - investments Sir Gabriel Wood’s Mariners’ Home

60

64

-

10

74

688

-

(9)

679

752

-

1

753


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 18. Reserves (continued) Movement in Funds (b) Restricted funds - consolidated

Balance

Incoming

Expenditure,

Balance

1 January

resources

gains, losses

31 December

and transfers

2017

2017 Sailors’ Society (see note 18(e)) Capital grants and donations

237

71

(37)

271

Donations and events income

167

188

(191)

164

21

-

(5)

16

21

-

(7)

14

Legacies Sailors’ Society Scotland Capital grants and donations Legacies

-

7

(7)

-

Other donations - restricted use only

5

18

(21)

2

923

1,333

(1,442)

814

Boat project

-

13

-

13

Leith Aged Mariners’ Fund

-

9

(9)

-

1,374

1,639

(1,719)

1,294

35

-

9

44

17

-

(6)

11

Sir Gabriel Wood’s Mariners’ Home General funds including grants Sailors’ Society Philippines Inc

Included within the above are the following movements on revaluation reserves: Sir Gabriel Wood’s - listed investments Sailors’ Society Scotland - restricted funds details Chaplains’ vehicle capital grants Montrose Centre capital grant

4

(1)

3

Chaplains’ ministry costs - Dundee and Leith

5

18

(21)

2

Legacies - Scotland use only

-

7

(7)

-

26

25

(35)

16

61


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 18. Reserves (continued) (b) Restricted funds - consolidated (continued) Sir Gabriel Wood’s Mariners’ Home The Sir Gabriel Wood’s Mariners’ Home in Greenock provides accommodation for retired seafarers and their dependants. The original assets and administration of the home were transferred under a Deed of Trust to the Society in 1968. The value of the Home itself is shown as an endowment fund. The day to day administration of the Home is carried out by the subsidiary charity whose own net assets are shown under restricted funds. Grants Grants relate to unexpended revenue grants and capital grants (both expended and unexpended). Depreciation on assets purchased with capital grants is charged against this restricted fund. Leith Aged Mariners’ Fund The administration of the Leith Aged Mariners’ Fund was passed to the Society by The Trinity House of Leith in 2000. The fund is a separate Scottish registered charity and was formed in 1943 for the benefit of aged seamen and their widows belonging to or connected with the port of Leith who, because of their financial position, are deemed to have been deserving of charitable help. The capital of the fund is available to be used for this purpose as well as the income. The fund is a separate legal entity and is treated as a subsidiary undertaking. Details of financial obligations of the fund are shown in note 17. (c) Unrestricted funds - consolidated Movement in Funds Balance

Incoming

1 January

Resources

2017 £000s Sailors’ Beneficial Enterprises Ltd (note 20) General reserve Designated Funds (see note 18(d))

£000s

Expenditure

Balance

gains, losses

31 December

and transfers

2017

£000s

£000s

13

169

(372)

(190)

12,231

1,345

(10,795)

2,781

1,539

-

7,526

9,065

13,783

1,514

(3,641)

11,656

Included within the above are the following movements on revaluation reserves: Investment properties Listed Investments

62

484

-

(86)

398

2,674

-

10

2,684

3,158

-

(76)

3,082


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 18. Reserves (continued) (d) Designated funds Movement in Funds Balance

Incoming

Expenditure

Balance

1 January

Resources

gains, losses

31 December

and transfers

2017

£000s

£000s

2017 £000s

£000s

Consolidated Strategic Fund

-

-

7,162

7,162

Capital Fund

-

-

132

132

Overseas Retirement Fund

-

-

50

50

Fixed Asset Fund

1,500

-

184

1,684

Educational Fund

39

-

(2)

37

1,539

-

7,526

9,065

Strategic Fund

-

-

7,162

7,162

Capital Fund

-

-

132

132

Overseas Retirement Fund

-

-

50

50

Fixed Asset Fund

1,451

-

119

1,570

Educational Fund

39

-

(2)

37

1,490

-

7,461

8,951

Society

Strategic Fund This fund is a commitment to commit financial resources over the period 2018-2022 in order to deliver the Society’s strategic plan. This commitment will be reviewed and adjusted on an annual basis and represents the net revenue deficit expected for the period of the plan. Capital Fund This represents the estimated capital expenditure over the period 2018-2020 and forms part of the strategic plan. Fixed Asset Fund This represents the portion of unrestricted funds that is held in the form of fixed assets and that is required for operational purposes. Overseas Retirement Fund This fund is intended to provide lump sum retirement grants to overseas staff and is based on age and length of service. Educational Fund This fund was originally established in 2007 following the sale of an artifact bequeathed to the Society which was sold at auction. The proceeds have been utilised to fund nautical training grants for sea service in memory of the donor’s family.

63


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 18. Reserves (continued) (e) The Society Movement in Funds Balance

Incoming

Expenditure

Balance

1 January

Resources

gains, losses

31 December

and transfers

2017

£000s

£000s

2017 £000s

£000s

Endowment funds 1,215

-

(54)

1,161

Capital grants and donations

237

71

(37)

271

Donations and events income

167

188

(191)

164

21

-

(5)

16

425

259

(233)

451

13,719

1,276

(3,108)

11,887

15,359

1,535

(3,395)

13,489

Sir Gabriel Wood's Mariners' Home Restricted funds

Legacies

Unrestricted Funds - General reserve General reserve

Included within the above are the following movements on revaluation reserves: Investment properties Listed Investments Sir Gabriel Wood's Mariners' Home

484

-

(86)

398

2,674

-

10

2,684

688

-

(9)

679

3,846

-

(85)

3,761

Restricted funds details Capital grants - Seafarers' Centres

180

19

(8)

191

Capital grants and donations - Chaplains' and programme related vehicles

38

43

(21)

60

Chapplaincy App development

19

9

(8)

20

Wellness Programme

-

95

(95)

-

Chaplains' ministry costs

33

27

(38)

22

Unspent legacy - Northern Ireland

10

-

-

10

Seafarers' welfare (direct)

2

25

(25)

2

111

-

-

111

4

-

-

4

Southampton Seafarers' Centre running costs

-

26

(11)

15

School boats and libraries

5

-

(1)

4

Sea training scholarships

23

-

(11)

12

Haiyan Appeal - rebuilding communities Health Centre - Bantayan Island, Philippines

Provision of Bibles

-

5

(5)

-

Other small projects

-

10

(10)

-

425

259

(233)

451

64


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 18. Reserves (continued) (f) Transfers between funds Unrestricted

Restricted

Endowment

Total

Funds

Funds

Funds

Funds

£000s

£000s

£000s

£000s

Leith Aged Mariners’ Fund

-

(9)

9

-

Sir Gabriel Wood’s Mariners’ Home - improvements

-

(70)

70

-

-

(79)

79

-

Leith Aged Mariners’ Fund The movement within restricted funds is transferred to endowment funds to reflect the increase in the value of the endowment. The endowment represents the value of the net assets of Leith Aged Mariners’ Fund in excess of the actuarial liability calculation (see notes 17 and 18(a)). Sir Gabriel Wood’s Mariners’ Home During the year the Sir Gabriel Wood’s Mariners’ Home charity spent £69,747 on improvements to the Home which is owned by the Society and treated as an endowment. As the charity is treated as a restricted fund, a transfer is required from restricted to endowment funds to recognise the increased value of the endowment by this amount.

19. Analysis of consolidated net assets between funds Unrestricted

Restricted

Endowment

Total

Funds

Funds

Funds

Funds

£000s

£000s

£000s

£000s

Fund balances at 31 December 2017 are represented by: Tangible fixed assets Investment properties Investments Interest free loans Current assets

1,678

331

1,348

3,357

475

-

-

475

9,688

252

203

10,143

16

-

-

16

722

817

20

1,559

Current liabilities

(408)

(103)

(8)

(519)

Long term liabilities

(517)

(3)

(82)

(602)

2

-

(2)

-

11,656

1,294

1,479

14,429

Interfund balances Total net assets at 31 December 2017

65


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 20. Subsidiary undertakings (a) Details of subsidiaries (1) The Society owns 100% of the issued ordinary share capital of Sailors’ Beneficial Enterprises Ltd, a company limited by shares and registered in England and Wales (no. 3652955). The company arranges corporate sponsorship on behalf of the Sailors’ Society and organises selected overseas fundraising events. It also handles any commercial trading activity. The registered office is Seafarer House, 74 St Annes Rd, Southampton, SO19 9FF. (2) Sir Gabriel Wood’s Mariners’ Home and Court in Greenock is a registered charity in Scotland (no. SC003763) managed by a committee acting under powers delegated to it by the Trustees of the charity. The majority of Trustees are directors of the Society and the Chief Executive Officer. The registered office is 57 Castlebay Court, Largs, KA30 8DP. (3) Leith Aged Mariners’ Fund is a registered charity in Scotland (no. SC003014) managed by the Board of Directors as nominated Trustees of the fund on behalf of the Society. The registered office is Seafarer House, 74 St Annes Road, Southampton, SO19 9FF. (4) Sailors’ Society Scotland is a registered charity in Scotland (no. SC041887) and a company limited by guarantee registered in Scotland (no. SC387850). This charity carries out some of the fundraising and charitable activity in Scotland. The registered office is c/o Mazars LLP, 100 Queen Street, Glasgow, G1 3DN. (5) Sailors’ Society Philippines Incorporated is a company limited by guarantee, registered in the Philippines, number CN201628509. The Society exercises its control through the company’s Board of Trustees the majority of whom are Society employees. The registered office is Room 204B, 18 Cherry Court Building, General Maxilom Avenue, Brangay Zapatera, Cebu City, Cebu. All results of the above subsidiaries are consolidated in the group financial statements. (b) Investment in subsidiary Cost At 1 January 2017 Additions At 31 December 2017

£000s 20 1 21

Provision for diminution in value At 1 January 2017 Provision in year At 31 December 2017

16 16

Net book value At 31 December 2017

5

At 31 December 2016

4

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ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 20. Subsidiary undertakings (continued) (c) Financial details Leith Aged Mariners’ Fund 2017 2016

Sir Gabriel Wood’s Mariners’ Home 2017 2016

Sailors’ Beneficial Enterprises Ltd 2017 2016

Sailors’ Society Scotland 2017 2016

£000s

£000s

£000s

£000s

£000s

£000s

Donations & grants

2

4

42

28

Sailors’ Society funding

-

-

-

-

Fundraising income

-

-

Legacies

-

-

101

£000s -

22

Sailors’ Society Philippines 2017

£000s

£000s

24

31

-

-

-

-

67

169

336

52

52

-

120

-

-

7

-

-

-

-

-

-

-

Residential home and flat fees

-

-

1,182

1,306

-

-

Investment and other income

7

8

8

9

-

-

9

12

1,333

1,463

169

336

81

76

98

(10)

(11)

-

(161)

(152)

(60)

-

-

(10)

(11)

Net (deficit)/surplus

(1)

1

(117)

Investment gains/(losses)

11

6

10

-

-

10

Charitable expenditure Fundraising costs

Interst/donation to parent charity Retained in subsidiary

(1,450) (1,306) -

-

(367)

(312)

(50)

(51)

-

(1,450) (1,306)

(367)

(312)

(211)

(203)

(60)

157

(198)

24

(130)

(127)

38

21

-

-

-

-

-

-

-

(5)

(12)

-

-

-

7

(107)

178

(203)

12

(130)

(127)

38

223

211

921

1,030

164

189

29

114

38

(2)

-

(105)

(107)

(351)

(173)

(82)

(37)

-

221

211

816

923

(187)

16

(53)

77

38

The aggregate of the assets, liabilities and funds was: Assets Liabilities Funds

In the consolidated financial statements, part of the net assets of the Leith Aged Mariners’ Fund are treated as a liability to reflect the obligation to pay future pensions which was recognised when administration of the fund passed to the Society (see note 17).

67


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 20. Subsidiary undertakings (continued) Transactions between the Society and the subsidiaries during the year and balances due at 31 December are as follows: Leith Aged Mariners’ Fund £000s

£000s

Sir Gabriel Wood’s Mariners’ Home

Sailors’ Beneficial Enterprises Ltd

£000s

£000s

£000s

Sailors’ Society Scotland

£000s

£000s

Sailors’ Society Philippines

£000s

£000s

Management charges made by Society

-

-

-

-

76

83

29

22

-

-

-

-

-

12

-

-

5

-

(323)

(128)

Grant funding from Society Gift aid due to Society

67

Loan interest due to the Society

-

Balance due (to) / from Society at 31 December

(2)

3

-

-

(73)

78

-

The Society bears the costs of investment management fees on the Leith Aged Mariners’ Fund investment portfolio. This cost during the year was £1,072 (2016: £951).

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ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 21. Financial commitments a) Operating leases At 31 December the Society had total commitments under non-cancellable operating leases payable as follows: Consolidated Land and Buildings Other 2017 2016 2017 2016 £000s £000s £000s £000s 166 50 67 71 480 182 37 98 2 46 -

Within one year Between two and five years More than five years

648

278

104

169

The Society Land and Buildings Other 2017 2016 2017 2016 £000s £000s £000s £000s Within one year Between two and five years More than five years

132 425 2

24 101 2

67 37 -

71 98 -

559

127

104

169

b) Other contractual commitments At 31 December 2017 the Society was committed to payments totalling at £9,478, expiring March 2018, in respect of outsourced IT services. The Society was also obliged to give one month’s notice on IT support contracts totalling £900.

22. Related party transactions The Society has made financial contributions in the current year and in the past, to kindred organisations that are separate legally registered organisations and of which the Society is a joint trustee or was a participating party on formation of such organisations. (a) Legal details Name

Activity

Country of registration

Society relationship

Port of Bristol Seafarers’ Centre

Seafarers’ Centre

England

Joint Trustee

Milford Haven International

Seafarers’ Centre

England

Joint Trustee

Seaham Seafarers’ Society

Seafarers’ Centre

England

Participating party

Felixstowe and Haven Ports Seafarers’ Service

Seafarers’ Centres

England

Joint Trustee

Port Hedland Seafarers’ Centre

Seafarers’ Centre

Australia

Participating party

Flying Angel Club, Fremantle

Seafarers’ Centre

Australia

Participating party

Centres for Seafarers Ltd

Seafarers’ Centres

England

Joint Trustee

Humber Seafarers’ Service Ltd

Seafarers’ Centre

England

Joint Trustee

Seafarers’ Centre

69


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 22. Related party transactions (continued) (a ) Legal details (continued) As each of these organisations is a separate legal entity the net assets are protected and on the dissolution of the organisation there is specific direction in the constitution as to how net assets are to be distributed. (b ) Balances owed at balance sheet date Balances due from such organisations were as follows:

2017

2016

£000s

£000s

Port Hedland Seafarers’ Centre Flying Angel Club, Fremantle

4

4

12

12

(c) Financial details and transactions with kindred organisations during the year Financial details of and transactions with organisations in which the Society is a Joint Trustee and involved in the management are: Centres for Seafarers Grants paid by Society during year (£000s) Proportion of controlling influence

Humber

-

Port of Bristol

Felixstowe -

Milford Haven

-

9

-

25.0%

33.3%

33.3%

33.3%

33.3%

- property

25.0%

-

33.3%

33.3%

25.0%

- other

25.0%

-

33.3%

33.3%

33.3%

29 June 2017

31 March 2017

31 March 2017

31 March 2017

31 December 2016

Proportion of net assets on dissolution

Last published accounts date

Net surplus/(deficit) in £000s Net assets in £000s

(260)

(78)

(18)

21

(64)

9

113

598

147

78

Centres for Seafarers ceased trading in 2016 . It is intended for the net assets of Centres for Seafarers to be distributed to the four participating societies upon the formal winding up of the company/charity which is ongoing. The majority of net assets have been taken over by one of the other societies. Milford Haven International Seafarers’ Centre ceased trading in 2015. The charity will now be wound up following the sale of the freehold property which completed early in 2018. The Society’s share of the net sale proceeds of £79,650 was £9,162 as a fourth party had a prior £43,000 interest in the property under the terms of a trust deed. Upon dissolution, the net assets of the Humber Seafarers’ Service can be transferred to an external body with agreement by the members. This may be, but not necessarily, one of the participating societies.

70


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 22. Related party transactions (continued) (d) Transactions involving directors and senior management Directors’ expenses The directors do not receive any remuneration. Travel and subsistence expenses reimbursed to four directors amounted to £1,671 (2016: four directors - £1,436). Clyde Marine Training Ltd During 2016 and 2017 the Society purchased training services and ancillary costs for its charitable nautical scholarship programme from Clyde Marine Training Ltd, a company in which Colin McMurray, a Trustee, is a director and had an interest via its parent company until 31 May 2016. The total value of these services between 1 January and 31 May 2016 was £13,641 . The services were provided at arms-length commercial terms with some elements discounted at a charity rate. The amount owed at 31 December 2016 relating to these transactions was nil. Naval and Military Bible Society In 2017 the Society used Christian literature supplied by Naval and Military Bible Society Ltd, a charity in which Stuart Rivers, the CEO of Sailors’ Society, became a Trustee on 10 February 2017. The Society gave the charity a donation of £7,000 during the year equating to at least the cost of the material provided. Donations made to the Society During 2017 the value of donations made by four individuals within Trustees and senior management was £91.

23. Unrecorded legacies The following estimated amounts relate to legacies notified to the Society but not yet accounted for in the financial statements:

Residual legacies Legacies subject to a life-tenant interest

2017

2016

£000s

£000s 36

10

212

173

248

183

71


SAILORS’ SOCIETY

Notes forming part of the financial statements For the year ending 31 December 2017 24. Contingent liabilities a) Liability arising out of joint operations The Society has a contingent liability which could arise from some of its joint operations (detailed in note 22). In instances where the Society recognises such a potential liability, full provision has been made in the financial statements and is shown within creditors. b) Liability arising out of grant conditions Sir Gabriel Wood’s Mariners’ Home received the following grants from the Merchant Navy Welfare Board. The grants are repayable if the Home is disposed of within a five year period from the date the grant was made. Year received

Amount £

2012

11,300

2013

12,500

2014

18,000

2016

50,400

c) Historic legal claims Subsequent to the year end, the Society has received personal injury claims in respect of past UK operations relating to the period from 1966 to 1982 which may result in legal action being taken against it. The claims are not quantified at this point in time and correspondence is ongoing between the claimants’ solicitors and the Society’s legal advisers. The Society’s insurers over that period have also been advised.

72


ANNUAL REPORT AND ACCOUNTS 2017

Notes forming part of the financial statements For the year ending 31 December 2017 25. Comparative data 2016 Statement of Financial Activities

Unrestricted

Restricted

Endowment

Funds

Funds

Funds

£000s

£000s

£000s

Total £000s

Income and endowments from: Donations and legacies Donations and grants

136

273

-

Telephone donor canvassing

45

-

-

409 45

Legacies

71

131

-

202

252

404

-

656

Income from seafarers’ centres and seafarers’ retirement facility

37

-

-

37

Other programme related income

67

-

-

67

-

1,306

-

1,306

104

1,306

-

1,410

Charity Shop income

167

-

-

167

Fundraising events, sponsorship and commercial

194

496

-

690

361

496

-

857

Investment income

443

16

-

459

Other

342

1

-

343

1,502

2,223

-

3,725

Charitable activities

Residential home fees and flat rental income

Other trading activities

Total Expenditure on: Raising funds

848

236

-

1,084

Charitable activities

2,201

1,838

(49)

3,990

Total

3,049

2,074

(49)

5,074

Net (expenditure)/income before investment (losses)/gains

(1,547)

149

49

(1,349)

(Losses)/gains on investment assets

1,161

21

6

1,188

Net (expenditure)/income

(386)

170

55

(161)

Transfers between funds

24

(38)

14

-

Net movement in funds

(362)

132

69

(161)

Fund balances brought forward

14,145

1,242

1,385

16,772

Fund balances carried forward

13,783

1,374

1,454

16,611

73


SAILORS’ SOCIETY

ADMINISTRATIVE DETAILS, TRUSTEES AND ADVISORS PATRONS Her Majesty The Queen His Royal Highness The Duke of Edinburgh KG KT – Honorary President of International Sailors’ Society, Canada

VICE PRESIDENTS The Free Churches’ Moderator for England The Right Reverend the Moderator of the General Assembly of the Church of Scotland The Right Reverend and Right Honourable the Lord Bishop of London The Right Reverend the Moderator of the General Assembly of the Presbyterian Church in Ireland David Morris Captain Reg Kelso MBE Ross Sinclair Frank Taylor Captain Andrew Tyrrell

SAILORS’ SOCIETY TRUSTEE BOARD (and serving directors) Alastair Fischbacher Chairman Michael Drayton Joint Vice-Chairman Peter Swift Joint Vice-Chairman Peter Goldberg Jonathan Holloway Colin McMurray Shyam Sharma Jonathan Stoneley Ian Ward Resigned 22 June 2017 Reverend Tim Wilkinson RN Resigned 21 September 2017 The above persons served as Trustees and directors of the Sailors’ Society during 2017.

COMMITTEE MEMBERSHIP Finance and General Purposes Committee Shyam Sharma (Chair) Michael Drayton Peter Goldberg Peter Swift Development Committee Peter Goldberg (Chair) Michael Drayton Captain Jonathan Stoneley Peter Swift Ian Ward (resigned 22 June 2017) Programme Committee Jonathan Holloway (Chair) Ian Ward (resigned 22 June 2017) Revd Tim Wilkinson (resigned 21 September 2017) Peter Goldberg (joined 4 September 2017) Colin McMurray (joined 4 September 2017)

74

Nominations Committee Alastair Fischbacher (Chair) Michael Drayton Peter Swift Peter Goldberg Jonathan Holloway Shyam Sharma

SUBSIDIARY ENTITIES Sir Gabriel Wood’s Mariners’ Home Trustees Michael Drayton (Chair) Rodger Clark John Collings Alastair Fischbacher Sheriff John Herald Colin McMurray Stuart Rivers Jonathan Stoneley (from 21 September 2017) Sailors’ Society Scotland Trustees Alastair Fischbacher (Chair) Sheriff John Herald Colin McMurray Michael Drayton Leith Aged Mariners’ Fund Trustees Sailors’ Society Board of Trustees Sailors’ Beneficial Enterprises Ltd directors Peter Goldberg (Chair) Alastair Fischbacher Andrew Pitcher Stuart Rivers Adam Stacey Philippines - Sailors’ Society Philippines Inc Trustees Stuart Rivers (chair) Jasper Del Rosario Gavin Lim Edgar Movilla Maria Rosaroso Iris Terana Nicodemus Tuban Sandra Welch Individuals responsible for the International Sailors’ Societies’ charities residing and registered outside the UK International Sailors’ Society Canada Kevin Obermeyer (Chair) International Sailors’ Society New Zealand Terry Nobbs (Chair) International Sailors’ Society Southern Africa Barry Haley (Chair)


ANNUAL REPORT AND ACCOUNTS 2017

India - Sailors’ Welfare Association directors (incorporated 17 August 2016) Michael Pinto (Chair) Darryl Braganza Joseph Chacko (deceased 21 February 2018) Samuel David Jagatheesa Pandian Johnson Samuel

MANAGEMENT AND ADMINISTRATION Registered Office of Sailors’ Society and its principal operational address: Seafarer House, 74 St Annes Road, Woolston, Southampton, Hampshire, England S019 9FF. Sailors’ Society is a charitable company limited by guarantee, registered in England and Wales, company registration no 86942, registered charity no 237778. Company Secretary: Stuart Rivers (to 14 April 2017) Andrew Pitcher (from 14 April 2017) Senior Leadership Team Stuart Rivers DMS, DipTh, FInstSMM Andrew Pitcher FCCA Sandra Welch BTh, MIPD Adam Stacey BTh Melanie Warman

Chief Executive Director of Finance and Administration Director of Programme Director of Development Director of Media and Advocacy

Auditors Mazars LLP, 5th Floor, Merck House, Seldown Lane, Poole, BH15 1TW Principal Bankers National Westminster Bank plc, PO Box 309, Chandler’s Ford, Eastleigh, Southampton, SO53 3UD Bank of Scotland, Pentland House, 8 Lochside Avenue, Edinburgh, EH12 9DJ Investment Managers Investec Wealth and Investment Limited, 30 Gresham Street, London, EC2V 7QN Cazenove Capital Management, 12 Moorgate, London, EC2R 6DA Solicitors Blake Morgan, New Kings Court, Tollgate, Chandler’s Ford, Eastleigh SO53 3LG Anderson Strathern LLP, 1 Rutland Court, Edinburgh EH3 8EY

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Sailors’ Society Seafarer House, 74 St Annes Road, Southampton, Hampshire, SO19 9FF, UK Registered Company No: 86942 Charity No: 237778

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Sailors' Society 2017 Report and Accounts  

The annual report and accounts for maritime charity Sailors' Society.

Sailors' Society 2017 Report and Accounts  

The annual report and accounts for maritime charity Sailors' Society.

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