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Report and Accounts 2010/11

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Report and Accounts January 2011Registered Charity Number: 299248

for the financial year ending 31 January 2011 UK Sailing Academy Ltd

Registered Company Number: 02251024 (England and Wales)


Contents UKSA is the charity dedicated to changing lives through maritime activities

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Report from the Chair of Trustees and Chief Executive Report of the Trustees

04 06 08 10 12 14 16 17 18 19 20 21 23 25 34

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Aims and Objectives Schools and Youth Groups Maritime Careers Disability Sporting Performance Financial Review Future Developments Structure, Governance and Management Statement of Trustees Responsibilities

Independent Auditors’ Report Statement of Financial Activities Balance Sheets Cash Flow Statement Notes to the Financial Statements Reference and Administrative Details

Report and Accounts January 2011


Report from the Chair of Trustees and Chief Executive During the year to January 2011 we have worked with more challenging young people, delivered an improved standard of education and training, increased financial value for donors and improved our overall financial position. We have achieved this by effective communication, staff development, financial scrutiny and developing strong partnerships. Over the last 25 years, UKSA has provided life-changing outcomes by applying innovative business principles to a unique charitable model. We have helped over 100,000 different individuals to challenge personal boundaries, develop employment skills, and enter fulfilling maritime careers through the catalyst of adventurous maritime activity and by providing high quality education, mentoring and support. As a result, we have had a significant and positive impact on the lives of individuals, families and communities.

All young people are important and each is a source of massive untapped potential. Some need extra help to gain skills and qualifications and the encouragement to have the confidence to become positively involved in life. Maritime activities provide an exceptional catalyst to release this potential.

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All young people are important and each is a source of massive untapped potential

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As we enter our 25th year of operation, we continue to innovate and develop to meet the changing needs of young society. By providing a wide cross section of inspiring programmes, today’s UKSA addresses several of those needs, including social disadvantage, family challenge and educational disengagement, and supports young people into employment. Our focus is to provide inspirational and engaging routes towards positive long term outcomes for each individual. During the year, we have increased our capacity to provide personal mentoring, widened our programme offer and placed an increased emphasis on measuring outcomes and impact.

We find that children have a natural enthusiasm for learning, but sometimes the system does not fit their needs. By working with schools, providing vocational and non-standard education in an inspiring and motivational residential environment, and by providing personal mentoring we are able to help these individuals achieve and succeed. This year, we have focused particularly on meeting the specific needs of individual schools and school clusters, improving both outcomes and value for money. Young people who become disengaged from education can become the young unemployed. Re-engagement programmes build the skills, confidence and self-belief to break this damaging cycle. We recognise that lasting impact is achieved by providing individuals with the mindset and skills that enables them to help themselves. Through the year we have increased our work with young people who are not in education, employment or training. By providing education, training, mentoring and support in to employment, these young people have been able to achieve significant improvement in their levels of confidence, happiness, motivation and selfesteem, while achieving new qualifications for work and employment. Our charity does not focus exclusively on the troubled or disadvantaged. An increasing number of young people choose the maritime sector as a career choice above university or other employment. These young people are inspired by the demands and rewards of a career that provides global opportunities within a challenging, diverse and inspirational vocational environment. This mix of financially supported and fee-paying clients opens opportunity to all, improves outcomes for all, and delivers exceptional results. We are committed to providing innovative solutions to meet all of these important youth issues. These achievements for young people and society are only possible with the unwavering support of our partners, ambassadors, advisory group, staff, volunteers, trustees and Patron. Thank you for your continued and valued support. David Lister: Chair of Trustees | Jon Ely: Chief Executive

Report and Accounts January 2011

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AIMS AND OBJECTIVES UKSA is the charity dedicated to changing lives through maritime activities

At UKSA we help individuals change their lives by giving them the opportunity to see their own potential, broaden their horizons and achieve outcomes that last for life.

Report of the Trustees The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of UK Sailing Academy Ltd (hereinafter ‘UKSA’) for the year ended 31 January 2011. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in March 2005, and have had regard to the general guidance provided by the Charity Commission on public benefit in ensuring that its aims and objectives comply with section 4 of the Charities Act 2006 and are for the public benefit. The impact report for each section of the charity will highlight how the activities meet the principles of public benefit. We achieve our aims and objectives by advancing personal development, and providing adventurous activities, maritime education, mentoring and an introduction to employment. Our goal is permanent positive change for each young life. We work to change lives in four core areas:i) Schools and Youth Groups – helping children and young people who would not otherwise have the opportunity to engage in challenging and rewarding residential watersports activities to increase their self-esteem, motivation and confidence. ii) Maritime Careers – supporting and encouraging young people who have limited opportunity to succeed within their current social environments, to develop their self-respect, social skills and qualifications and help them to engage in meaningful maritime employment. iii) Disability – the sense of achievement instilled from maritime experiences makes a significant contribution to increasing confidence and self-esteem. iv) Sporting Performance – the healthy competition it creates inspires our students and gives them the determination to achieve their best. Our objectives extend to advancing the education of the public in all aspects of maritime activities, education and training; to providing facilities for the leisure time occupation of the general public, and in particular facilities for water sports and outdoor activities in the interests of social welfare and with the object of improving their conditions in life; and to promote community participation in healthy recreation through the provision of sailing facilities. Our main aims for the year are outlined below, together with a brief summary of how we achieved them.

Activity Summary for the Year to 31 January 2011 Throughout the year, 7,119 individuals have benefited from maritime education and personal development at UKSA. We have provided £497,883 of assisted funding to our beneficiaries. All students and visitors have been able to benefit from our community of employees, volunteers, partners and supporters.

Number of individuals benefiting from charitable activity at uksa in 2010/11

5,361 Schools and Groups 802 Maritime Careers 278 Disability 78 Sporting Performance 600 Leisure 94% of our beneficiaries are under 25

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Report and Accounts January 2011


The main objectives for the year were: // To expand our partnerships and work with other charities and like minded organisations to reach more beneficiaries. Existing partnerships such as the Ellen MacArthur Cancer Trust continue to go from strength to strength in providing more opportunities to young people. New partnerships with charities such as Toe in the Water which aims to inspire those who have sustained traumatic injuries and move beyond disability, enabled more individuals to participate and benefit from water based activities at UKSA. We continued our partnership with the Royal Yachting Association for sporting performance and expanded the reach to under 25s through the British Keelboat Academy. Our pilot project aimed at Island young people has forged strong relationships with local authorities and businesses. // To widen schools participation and develop schools curriculum courses. We have continued to work with schools and colleges to provide curriculum courses, vocational education and outdoor activities. Our training course in NVQ2 Activity Leadership was hugely successful; an impressive 92% of students passed with several achieving outstanding results and winning awards.

Report and Accounts January 2011

// To expand our work with ‘NEETs’ (Not in Education, Employment or Training), young offenders and those at risk or in rehabilitation. As part of an on-going programme, we are using our facilities and teaching expertise to help long-termed unemployed young people back into employment. A new 26 week training and work experience course for water sports apprentices was delivered to 35 young people with very pleasing results; successful apprentices have found employment in the UK and overseas and 4 were offered continued employment at UKSA. Our pilot project for Island children helped them break away from negative inter-generational patterns such as unemployment and crime and offered engagement with local clubs and activities. A restricted donation from the Henry Smith Charity has allowed us to appoint a full time Youth Development Co-ordinator whose primary role is to support and mentor our young students training for employment. // To continue to improve our maritime careers courses by ongoing assessment of content, student mentoring, achievements and employment opportunities. With accreditation from the British Accreditation Council, our commitment to students has never been stronger. We made significant investment in staff training and development in the year to ensure the skills, knowledge and expertise of our instructors helps each student achieve at their best. The continued development and delivery of our Cadetship course provides a viable alternative to university and its sandwich course format means that Cadets spend time in paid work placements in the maritime sector, including some of the world’s largest super yachts.

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Schools and Youth Groups

Children have a natural enthusiasm for learning.

Well-being in Children Children and young people believe that five outcomes are key to their well-being in the future – being healthy; staying safe; enjoying and achieving; making a positive contribution and achieving economic well-being. (Every Child Matters: Change for Children – Department for Children, Schools and Families) A key focus of our work is to help young people enjoy their childhood through confidence and self-belief but also develop the resilience, skills and competencies needed to make a successful transition into adulthood. ‘During our visits to UKSA we get the opportunity to witness the less confident and introverted learner grow in selfconfidence, experiencing both success and pride in their achievement.’ (Chris Marshall, Head Teacher, Ivy Lane Primary School)

Youth Engagement ‘Studies show that the most prolific offenders start early, between the ages of 10 and 13 and have longer criminal careers than other criminals.’ (Make Me a Criminal: Preventing Youth Crime – Institute for Public Policy Research 2008) In partnership, we created and launched an inspirational pilot project for young people on the Isle of Wight. With volunteer mentors, our Partnership for Youth Engagement worked with young people to increase their personal development and skill sets through on-the-water challenge and adventure. By the end of the programme, each young person had the confidence to engage with local clubs and activities and build positive relationships with their schools and local services. Projects such as this help individuals realise their potential whilst confronting negative inter-generational patterns such as violence, drugs and crime that can pose a threat to their future and the community.

Educational Partnerships ‘In one year 9,880 young people were permanently excluded from the education system. In the same year 344,510 young people were temporarily excluded from their school, with 201,780 of these pupils having been excluded more than once.’ (Department for Education) Children have a natural enthusiasm for learning, but they can also become disengaged if their school day is rigid and routine. With the option to link the curriculum to water based activities, pupils who visit UKSA not only get the benefits of learning outside the classroom, but also personal development through teamwork, challenge and fun. We work in partnership with local schools and colleges to deliver NVQ Activity Leadership and BTEC in Sport and Public Services in an outdoor learning environment. This helps not only those students who struggle in a classroom setting but also those who simply want a more practical and hands-on approach to learning.

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Report and Accounts January 2011


Public Benefit The following are examples of how our engagement framework enables us to meet public need:

Pre Course // Youth orientated advertising through a range of media to enable the widest awareness // Breaking down barriers by freely providing education and information // Providing advice and guidance to group leaders and individuals in order to promote the best outcomes // Working with partners to widen our reach // Working with partners to identify young people who are hard to reach

Financial Inclusion // Providing assisted funding to groups and individuals // Working with partners to reduce cost to participants // Seeking financial efficiencies to minimise delivery costs // Fully inclusive courses reducing additional hidden costs

ACHIEVEMENT AND PERFORMANCE // 5,361 individual young people have been inspired by residential activities at UKSA // ÂŁ132,271 of assisted funding has been provided through UKSA to support schools and youth groups // This has enabled 870 deserving young people, who would not otherwise have had the opportunity, to access inspiring activities afloat

Activity // Offering a wide range of inclusive activity, course length and price options to increase opportunity and accessibility // Providing mentoring and coaching to break down the barriers of participation and increase positive outcomes // Working with partners to provide access, inclusion and support

Progression // Promoting progressive opportunities to all // Continued engagement with UKSA // Adventurous activities and sport for lifetime health // Taking part in leisure time occupation // Gap year and travel opportunities to learn and engage with international society // Career opportunities within the maritime sector

Report and Accounts January 2011

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It’s vital that we invest in young people today.

Maritime Careers

Investing in Young People ‘Young people from families where no-one works are significantly more likely to struggle to find a job themselves. Some grow up believing their own destiny lies in the dole queue.’ (Destined for the Dole? Breaking the cycle of worklessness in the UK – Prince’s Trust 2010) With many young people labeled as NEET, we have created successful solutions to worklessness. In an ongoing programme, we retrain young people back into employment through a six month apprenticeship. Individuals gain a range of vocational qualifications and transferable skills to utilise in the future. It’s vital that we invest in young people today; in the short term, youth unemployment costs the country £3.5m each day in Jobseekers Allowance.* In the long term if young people are not working and paying taxes today, there will be little or no funding to finance those people wanting to retire in the next 20 years. (*Office for National Statistics, Labour Market Statistics, January 2010) ‘The new skills I learnt through UKSA and the Prince’s Trust ‘Get into Maritime’ programme led me to being offered a full-time job as a watersports instructor. Everything feels different, I now have a long term plan and a future I can look forward to.’ Mark Robinson, ‘Get into Maritime’ student

Maritime Careers ‘The maritime industry is of truly world-scale significance and the UK is a major player in the supply of capital, hardware and skilled employees into both UK and overseas companies operating in the sector.’ (The Maritime Skills Alliance) For those on career training courses, the knowledge and experience of our staff ensures that every student achieves at their best. Students receive personal mentoring and industry guidance to help and support them onto the first step of the career ladder. ‘The Cadetship has given me a clear career path but without the student debt. The sandwich course structure of studying at UKSA and in paid work placements aboard super yachts, means that I get the most out of my training.’ Ed Collinge, UKSA Cadet

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Report and Accounts January 2011


Public Benefit The following are examples of how our engagement framework enables us to meet public need:

Pre Course // Advertising and promotion through a range of media to enable widest awareness and inclusive opportunity to participate // Breaking down participation barriers by freely providing education and information // Providing advice and guidance to individuals in order to promote the best outcomes // Working with partners to widen our reach // Working with partners to identify young people who are hard to reach

Financial Inclusion // Providing assisted funding // Working with partners to reduce cost to participants

ACHIEVEMENT AND PERFORMANCE // UKSA has helped 802 students to gain qualifications for meaningful employment within the maritime sector // This year ÂŁ249,214 of assisted funding has been provided through UKSA to support training for maritime careers // This has enabled 52 individuals to benefit as a result of assisted funding

// Seeking financial efficiencies to minimise delivery costs // Fully inclusive courses reducing additional hidden costs

Activity // Offering a wide range of training courses with a choice of course length, career destination and price options in order to increase opportunity for individuals and maximise accessibility // Providing mentoring and coaching to break down the barriers to participation and increase positive outcomes // Working with partners to provide access, inclusion and support

Progression // Promoting progressive opportunities to all // Continued engagement with UKSA // Adventurous activities and sport for lifetime health // Taking part in leisure time occupation // Gap year and travel opportunities to learn and engage with international society // Career opportunities within the maritime sector

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For everyone, spending time on the water is empowering.

Making sailing and watersports accessible to all ‘We want to create a society where everybody is treated with dignity and respect and has the chance to fulfill their potential and unlock their talent. We need to ensure that disabled people are a full part of this agenda.’ (Independent Living Strategy – Office for Disability Issues) By removing barriers to participation in sailing and watersports, we provide opportunities for people with disabilities to develop their skills and confidence through on the water activities. For some people we offer the chance to try new experiences and gain as much independence as possible. For others who want to pursue sailing as a career, we take steps to help them achieve this. For everyone, spending time on the water is empowering.

Working in Partnership This year, through schools, groups and assisted funding, 278 disabled individuals have spent time with us through day visits or residential trips. We work alongside charities and organisations such as RYA Sailability, Toe in the Water, Fishbourne Sailability and the British VI Sailing Team to help people participate and benefit from on the water activities. ‘During my time with UKSA, I’ve had new experiences with others who have similar needs to me. This includes fulfilling a life long dream to participate in Cowes Week. It has helped and encouraged me to make new friends and to never give up on something, no matter how challenging.’ (Craig Rose, Stroke Survivor)

Providing Tailored Programmes Through our tailored programmes we offer fun, structured activities, which can help individuals take control, make choices and see that what they’ve achieved on the water with us can also be transferred into their daily lives. Positive outcomes such as this can go a long way in breaking down any emotional barriers and fear of doing something new that disability can cause. ‘Working with UKSA to enable our students with learning difficulties to access all that it has to offer has been fantastic; on a professional and personal level it is a fine example of innovative and inspiring partnership. My students and staff thoroughly enjoy working with the instructors; their commitment to our group is always exemplary.’ (Julie Golding-Clarke, Assistant Head Teacher, Heritage House)

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Report and Accounts January 2011

Disability


Public Benefit The following are examples of how our engagement framework enables us to meet public need:

Pre Course // Youth oriented advertising through a range of media to enable widest awareness // Breaking down barriers by freely providing education and information // Providing advice and guidance to group leaders and individuals in order to promote the best outcomes // Working with partners to widen our reach // Working with partners to identify young people who are hard to reach

Financial Inclusion // Providing assisted funding to groups and individuals // Working with partners to reduce cost to participants // Seeking financial efficiencies to minimise delivery costs // Fully inclusive courses reducing additional hidden costs

Activity // Offering a wide range of inclusive activity, course length and price options to increase opportunity and accessibility

ACHIEVEMENT AND PERFORMANCE // 278 people with disability have directly benefited from the facilities and expertise at UKSA // UKSA also provided a base for Fishbourne Sailability, to provide on water activities to disabled sailors together with expertise and support // ÂŁ14,499 of assisted funding has been delivered to fund inspirational activities afloat for people with disabilities

// Providing mentoring and coaching to break down the barriers of participation and increase positive outcomes // Working with partners to provide access, inclusion and support

Progression // Promoting progressive opportunities to all // Continued engagement with UKSA // Adventurous activities and sport for lifetime health // Taking part in leisure time occupation

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Sporting Performance

To empower our sailors, training is combined with competitive racing.

Healthy Competition ‘One of the lessons from the Active England programme is that simply activities and a logical argument about why it is a good thing is not enough’. (Active England Final Evaluation Report 2009 – Sport England) We also believe that it takes more than just providing the boats, venue or instructors to encourage sporting performance. For people to get the most out of their experience, whether it is to learn new skills, gain qualifications or improve their fitness, we offer encouragement, support and mentoring.

H2O Clubs For Island youngsters aged 8-16, our H2O clubs offer different watersports activities throughout the year. Clubs are a great way to encourage children to improve their sporting performance by keeping fit, making friends and working towards qualifications in a fun and safe environment.

British Keelboat Academy (BKA) Since 2009, we have worked in partnership with the RYA to give talented young people the chance to achieve sporting excellence through competitive yacht racing.

Competitive Racing ‘Winning on the international sporting stage is incredibly tough and the margins between success and failure become smaller with each passing year… we need to ensure that the UK’s most talented athletes have every chance of realising their potential.’ (World Class Performance Programme – UK Sport) The BKA programme has been designed to coach the next generation of competitive sailors. Selected young people aged 18-24 are given the opportunity to train with like-minded people and develop the skills, attitude and ability needed to achieve. The skills that our sailors gain through competitive yacht racing such as confidence, decision making and teamwork are also valuable life skills, that can be used in many different career paths, situations and opportunities.

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Report and Accounts January 2011


Public Benefit The following are examples of how our engagement framework enables us to meet public need:

Pre Course // Youth orientated promotion through a range of media to enable widest awareness and participation // Breaking down barriers by freely providing education and information // Working with partners to widen our reach

Financial Inclusion // Providing assisted places for all participants

Activity // Providing mentoring and coaching to break down the barriers of participation and increase positive outcomes // Working with partners to provide access, inclusion and support

Progression // Promoting progressive opportunities to all // Continued engagement with UKSA // Adventurous activities and sport for lifetime health

ACHIEVEMENT AND PERFORMANCE (BKA) // 38 race squad members // ÂŁ101,899 of assisted funding including development of regional training bases // 1st overall, RORC St Malo race // 4th overall, Sevenstar Round Britain and Ireland race // Winner of Peter Harrison Youth Trophy, RORC offshore series // 4th J80 National Championships // 1st Class Super Zero, RORC offshore series

// Taking part in leisure time occupation // Gap year and travel opportunities to learn and engage with international society // Career opportunities within the maritime sector

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Financial Review Financial Results for the Year // We had anticipated a challenging start to the year for course revenue, from both funded and non-funded activity, and set a cautious budget of £3,963k for incoming resources. We exceeded budget by 18.34% and delivered £4,690k in the year; and bettered our prior year income of £4,587k by 2.22% // Total resources expended, including impairment of assets, were £4,585k. This was higher than budget of 3,983k to meet direct delivery costs, but was a reduction of 4.45% on prior year expenditure of £4,798k. This was mainly due to cost efficiencies from course restructures // Net surplus from incoming resources is £105k, which has bettered our budget of £25k, and prior year of £206k deficit // A key strategic change in the year was the formation of the trading subsidiary, which generated £273k income and contributed £57k profit, which will be gifted back to the charity The principal funding sources, and expenditure incurred, are given below:

Income 2010/11 Maritime careers

£2,863k (61%)

Student Services and site income

£163k

(4%)

Voluntary

£104k

(2%)

Schools and youth £900k groups

(19%)

Generated income £273k through trading

(6%)

Sporting Performance

£102k

(2%)

Recreation training £234k

(5%)

Other income

£31k

(1%)

Disability

£20k

(0%)

Expenditure 2010/11 Direct cost of training

£2,132k (46%)

Other direct delivery

£270k

( 6%)

Site accommodation

£827k

(18%)

Cost of trading

£216k

( 5%)

£ 50k

(1%)

Marketing and fundraising

£523k

(11%)

Impairment of fixed assets Student services

£ 39k

( 1%)

Support costs

£482k

(11%)

Governance

£35k

( 1%)

Generating funds

£11k

( 0%)

Financial Review UKSA has had a good year and performed well in a difficult economic climate for charities. We have returned a net surplus of £105k following three years of deficit, which is a result of organisational and structural change. Our free reserves have grown in the year and we are making good progress in achieving our longer term aims to meet the targeted levels in our reserves policy. Due to the uncertainties of the economy and impact of the recession from 2009 we set a cautious budget for the year ending January 2011, with anticipated income down by 14% across all areas of activity. However, we had taken robust action in reducing costs and restructuring the organisation from September 2009, and this allowed us to stabilise the core delivery costs and overheads in the early part of the financial year and budget and achieve a surplus of £105k. Our main successes from new initiatives in the year were an increase in provision to schools and youth groups from supported activity (£132k of assisted funding in the year, £50k last year); the growth of curriculum courses delivered to local schools and colleges which was piloted in 2009 and delivered £81k of activity in the year to January 2011; and government funding of £154k for 35 young apprentices to retrain for work in the maritime sector. Quality of delivery and standards of tuition and safety remain primary objectives and we have prioritised and invested in staff training during the year, as a catalyst for future growth and success. In developing our strategic plan for the next five years, we have a strong platform to target growth in all areas of core activity, while continuing to stabilise our finances and invest for the future.

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Report and Accounts January 2011


Fixed Assets

Reserves Policy

The majority of the charity’s fixed assets comprise the freehold land and buildings of the premises at Cowes, £2,277k, and the training fleet of yachts and watersports craft, £1,416k. At January 2011 the value of the catamaran was impaired by £50k as its carrying value was deemed to be higher than its net realisable value. In the opinion of the trustees, there is no material difference between the carrying value of the freehold property and swimming pool and their market value. Acquisitions and disposals of fixed assets during the year are recorded in the notes to the accounts.

The reserves policy is monitored annually and reviewed each year at the board meeting when the budget is approved.

Investments UKSA has the power to invest in any way the trustees decide would further the objectives of the charity while having due regard to investment risk, the liquidity requirements of operating the organisation, and to the reserves policy. Liquid funds have been held in special interest bearing accounts (SIBAs), which attracted a variable rate throughout the year. Funds were also placed in fixed term bonds and a liquidity manager account to attract a higher rate of interest for between three and six months. The trustees assessed the working capital requirements of the charity, and the liquid funds held in SIBAs and fixed term bonds were deemed to be adequate to meet the short term cashflow requirements of the charity. Cash in hand and at bank increased by £561k in the year, including £150k proceeds from the sale of Gipsy Moth IV. The trustees designated this for improvements to the buildings, replacement of the disabled lift and additional car parking. The balance of funds is held as fixed asset investments with Rensburg Sheppards to invest primarily in fixed interest securities with low to medium risk. Details of investments held are given in note 20 to the Financial Statements. The value of fixed asset investments grew in the year by 2.64%.

Report and Accounts January 2011

Restricted Reserves: UKSA has restricted reserves which are only available for expenditure in accordance with the donors’ directions. Where those reserves have been expended on fixed assets, the reserves financing the book value of those assets will continue to be accounted as restricted reserves, to reflect any continued obligations in respect of the use of those assets. A restricted reserve is held for the swimming pool. A restricted reserve is held for the maintenance and on-going provision of Gipsy Moth IV for the general public. Other restricted reserves held to support revenue expenditure are detailed in note 21 to the Financial Statements. Unrestricted Reserves: UKSA invoices in advance to students who have booked for the subsequent year. This allows the charity to plan ahead in terms of capacity and provide them with assurance that there are sufficient funds to run the programmes. The amounts invoiced in advance, including deposits received, have been deferred in line with the requirements of SORP 2005. In addition, the charity owns the freehold property it operates from without any borrowings on the property, and holds investments funds for longer term financial planning. The trustees, therefore, are content to hold one month’s unrestricted reserves in addition to the amount deferred in the prevailing economic climate. At current levels, this would be equivalent to about £360,000. During the year, the charity generated sufficient free funds, described as general unrestricted funds on the balance sheet, to more than meet that amount at 31 January 2011. However, in the longer term and to align with the charity’s five year strategic plan, the target is to increase free reserves to around three months’ worth of unrestricted reserve. Transfers between reserves represent the application of restricted and designated funds to capital projects and transfers to maintain the committed value of restricted funds.

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Future Developments Our ambition as we look ahead is to reach more young people who, with our help and encouragement, can change their life. The senior management team and trustees have formulated a five year rolling strategic plan to achieve key successes in each of the four core areas of activity, and measure the outcomes and impact for beneficiaries. Our aims for next year are outlined for each of the four core areas of activity. // Schools and Youth Groups – to build strong links with new schools and colleges to increase our offer of non-standard educational options; and to widen schools participation further by increasing communication about the programmes we offer, access and assisted funding available. // Maritime Careers – to build on our links with the marine industry to ensure maximum employment opportunities around the world for our students; and to continue to provide long-term solutions to worklessness through training and employment opportunities by actively accessing funding and partnership provision. // Disability – to actively build new partnerships with other organisations where mutual support will benefit more individuals, and to continue to fund raise to provided financial assistance for those in need. // Sporting Performance – to build on our success with the British Keelboat Academy, increasing opportunities through sporting performance to change lives and develop skills.

The impact of UKSA doesn’t stop at the individual; it extends right into the heart of our local communities.

UKSA Patron, HRH The Princess Royal

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STRUCTURE, GOVERNANCE AND MANAGEMENT The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. Four of the trustees are the only members. Organisational structure UKSA is administered by a Board of seven unpaid trustees. The trustees are also directors for the purposes of the Companies Act 2006. The trustees appoint the Chief Executive. The Board meets six times a year at UKSA with the senior management team, to discuss strategy and the major issues affecting UKSA, as well as assessing performance. Decisions made at these meetings are enacted by the senior management team, who are responsible for the day to day running of the company. The charity operates a comprehensive annual planning and budgeting process, in conjunction with its five year rolling strategic plan, which is approved by the Board. Reports are made to the Board with regard to financial performance, health and safety, legal and statutory compliance, key operational issues and monitoring strategic plans.

Recruitment, appointment and induction of new trustees The Board of trustees has the power to appoint any other person as they shall think fit as a trustee of the Board, by way of addition to the Board. The composition of the trustee Board is regularly assessed as part of the strategic and business plan review. New trustees are recruited through national advertisements and are required to undergo a six month induction period with the charity before taking up full trusteeship. During the year, two new trustees were appointed following a six month induction period.

Related parties David Lister, Ben Cussons and Stephen Chipperfield, trustees of UKSA, are also trustees of the Whirlwind Charitable Trust (WCT) which gave some financial assistance to UKSA in the form of a ÂŁ25,000 donation in the year. Transactions between UKSA and its wholly owned subsidiary, UKSA Trading Limited, are fully disclosed in Note 4 to the Financial Statements. It has one share, which is owned by UKSA. The company commenced trading on 1 May 2010.

Risk assessment The trustees have taken all appropriate steps to mitigate and manage risks and are thoroughly involved in the risk assessment and monitoring process at UKSA. The charity has risk management procedures through which risks arising from the existing operations and strategic developments are identified and evaluated. Senior managers report to the Board at each meeting on key areas of risk and additionally on an ad hoc basis with regard to health and safety. The predominant risk for the charity is the health and safety of students afloat, and stringent operating procedures exist to minimise risk in this area. The company continues to engage Natwest Mentor Services to provide a comprehensive health and safety system. This, together with the high level of monitoring from numerous National Governing Bodies and Statutory Authorities, helps to ensure the very best working practice for UKSA. The main financial risk is an unexpected downturn in income. Business risks are regularly evaluated and a strategy is in place, which is reviewed annually along with the reserves policies and financial forecasts. Other operational, environmental and external risks are regularly reviewed, and the charity is producing a comprehensive risk register.

New trustees undergo an induction day to familiarise themselves with their legal obligations, the content of the Memorandum and Articles of Association, the financial performance of UKSA, and its strategic and business plans. They are provided with an induction pack with details of the constitution and activities of the charity, and an outline of the role of a trustee and code of conduct. They meet the senior management team and other trustees. All trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

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17


STATEMENT OF TRUSTEES’ RESPONSIBILITIES in accordance with Companies Act 2006 The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of the affairs of the Board and of the surplus or deficit of the Board for that period. In preparing these financial statements the trustees are required to:

// Select suitable accounting policies and apply them consistently // Observe methods and principles in the Charities SORP // Make judgements and estimates that are reasonable and prudent // State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements // Prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue in operation The trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included in the charity’s website. Legislation in England/Wales governing the preparation and dissemination of financial statements and other information included in Annual reports may differ from legislation in other jurisdictions. In so far as we are aware: // There is no relevant audit information of which the charitable company’s auditor is unaware; and // The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

AUDITORS The auditors, haysmacintyre, will be proposed for re-appointment in accordance with the Companies Act 2006 at the AGM of the Board.

ON BEHALF OF THE BOARD:

David Lister D Lister -Trustee

13th July 2011 Date

18

Report and Accounts January 2011


INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF UK SAILING ACADEMY We have audited the financial statements of UK Sailing Academy for the year ended 31 January 2011 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinion we have formed.

Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the 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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and nonfinancial information in the Trustees’ Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements In our opinion the financial statements: // give a true and fair view of the state of affairs of the charitable company and the group as at 31 January 2011 and of the incoming resources and application of resources, including the income and expenditure, of the group 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

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

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: // adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us: or // the financial statements are not in agreement with the accounting records and returns; or // certain disclosures of trustees’ remuneration specified by law are not made; or // we have not received all the information and explanations we require for our audit

Murtaza Jessa: Senior Statutory Auditor for and on behalf of haysmacintyre Statutory Auditors and Chartered Accountants

Date

Fairfax House, 15 Fulwood Place, London, WC1V 6AY

Report and Accounts January 2011

19


CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 January 2011 (incorporating income and expenditure account)

Notes Unrestricted Funds £

Restricted Funds £

Total 2011 £

Total 2010 £

Incoming Resources Incoming resources from generated funds: Voluntary income Activities for generating funds General Trading Activities Investment income

Incoming resources from charitable activities:

2

42,362

61,700

104,062

21,484

3 4 5 6

20,998 273,151 25,642

0 0 501

20,998 273,151 26,143

18,500 0 53,810

4,065,699 160,496

35,000 0

4,100,699 160.496

4,117,854 361,430

4,307

0

4,307

14,717

4,592,655

97,201

4,689,856

4,587,795

Training and education Student services

Other incoming resources: Gain on disposal of tangible fixed assets

Total incoming resources

Resources ExPended Cost of generating funds: Fundraising trading: cost of goods sold and other costs Trading Activities Costs of Managing investments for income

7

16,188

0

16,188

6,218

4

216,520 2,173

0 0

216,520 2,173

0 1,365

Cost of charitable activities:

8 3,306,597 966,754 34,928

38,887 2,500 0

3,345,484 969,254 34,928

3,564,841 1,195,839 29,587

4,543,160

41,387

4,584,547

4,797,850

49,495 6,596

55,814 (6,596)

105,309 0

(210,055) 0

56,091 295

49,218 0

105,309 295

(210,055) 3,872

Net movement in funds Total funds brought forward

56,386 4,421,464

49,218 33,626

105,604 4,455,090

(206,183) 4,661,273

TOTAL FUNDS CARRIED FORWARD

4,477,850

82,844

4,560,694

4,455,090

Training and education Student services

Governance costs

10

Total resources expended

Net incoming/(outgoing) resources before transfers Gross transfers between funds

21

Net incoming/(outgoing) resources before other recognised gains Unrealised gains on investment assets

CONTINUING OPERATIONS All of the charity’s activities are continuing. There were no gains or losses other than those shown above.

20

Report and Accounts January 2011


CONSOLIDATED BALANCE SHEET As at 31 January 2011

Notes

Unrestricted Funds General Trading £ £

Restricted Funds £

Total 2011 £

Total 2010 £

FIXED ASSETS Property, equipment and training fleet Investments

19

3,876,605

0

7,500

3,884,105

4,216,264

20

593,719

0

0

593,719

578,457

4,470,324

0

7,500

4,477,824

4,794,721

159,130 1,126,830 1,351,470

4,116 7,902 80

0 0 75,345

163,246 1,134,732 1,426,895

186,654 818,131 814,410

2,637,430

12,098

75,345

2,724,873

1,819,195

(2,459,421)

0

0

(2,459,421)

(2,093,638)

178,009

12,098

75,345

265,452

(274,443)

4,648,333

12,098

82,845

4,743,276

4,520,278

(182,582)

0

0

(182,582)

(65,188)

4,465,751

12,098

82,845

4,560,694

4,455,090

3,876,605 544,614 56,631

4,206,264 215,200 0

4,477,850

4,421,464

82,844

33,626

4,560,694

4,455,090

CURRENT ASSETS Stocks Debtors Cash at bank and in hand

14 15 16

CREDITORS Amounts falling due within one year

17

NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES

CREDITORS Amounts falling due after more than one year

18

NET ASSETS

FUNDS Unrestricted funds

21

Designated tangible fixed asset fund Unrestricted general funds Unrestricted trading funds

Restricted funds TOTAL FUNDS

The financial statements were approved and authorised for issue by the Board of Trustees on and were signed on its behalf by:

13th July 2011

David Lister D Lister -Trustee

Report and Accounts January 2011

21


CHARITY BALANCE SHEET As at 31 January 2011

Notes Unrestricted General £

Restricted Funds £

Total 2011 £

Total 2010 £

3,876,605 593,720

7,500 0

3,884,105 593,720

4,216,264 578,457

4,470,325

7,500

4,477,825

4,794,721

159,130 1,183,461 1,351,471

0 0 75,344

159,130 1,183,461 1,426,815

186,654 818,131 814,410

2,694,062

75,344

2,769,406

1,819,195

(2,503,955)

0

(2,503,955)

(2,093,638)

190,107

75,344

265,451

(274,443)

4,660,432

82,844

4,743,276

4,520,278

(182,582)

0

(182,582)

(65,188)

4,477,850

82,844

4,560,694

4,455,090

3,876,605 601,245

4,206,264 215,200

4,477,850

4,421,464

82,844

33,626

4,560,694

4,455,090

FIXED ASSETS Property, equipment and training fleet Investments

19 20

CURRENT ASSETS Stocks Debtors Cash at bank and in hand

14 15 16

CREDITORS Amounts falling due within one year

17

NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES

CREDITORS Amounts falling due after more than one year

18

NET ASSETS

FUNDS Unrestricted funds

21

Designated tangible fixed asset fund Unrestricted general funds

Restricted funds TOTAL FUNDS

The financial statements were approved and authorised for issue by the Board of Trustees on and were signed on its behalf by:

David Lister D Lister -Trustee

22

Report and Accounts January 2011

13th July 2011


CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 January 2011

Notes NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

1

2011 £

2010 £

625,217

(195,756)

19,386 6,757 (18,871)

7,239 46,571 (21,516)

7,272

32,294

(222,176) (247,088) 237,744 211,516

(574,584) (50,955) 17,680 0

(20,004)

(607,859)

612,485

(771,321)

(316,732)

548,236

295,753

(223,085)

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Dividends received Interest received Interest paid and fees

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Purchase of investment assets Purchase of tangible fixed assets Sale of tangible fixed assets Sale of investment assets

Cash inflow/(outflow) before use of liquid resources and financing

MANAGEMENT OF LIQUID FUNDS (Decrease)/increase in short term deposits

Increase/(decrease) in cash in the year

Report and Accounts January 2011

2

23


CONSOLIDATED CASH FLOW STATEMENT continued For the year ended 31 January 2011

2011 £

2010 £

105,309 291,758 (4,307) (19,386) (6,757) 18,871 49,745 23,408 (316,601) 483,177

(210,055) 350,098 (14,717) (7,239) (46,571) 21,516 115,406 14,557 219,041 (637,792)

625,217

(195,756)

Increase in cash in the year Increase in short term deposits

295,753 316,732

(223,085) (548,236)

Movement in net funds in the year Net debt at 1 February

612,485 814,410

(771,321) 1,585,731

1,426,895

814,410

At 1.2.10 £

Cash flow £

At 31.1.11 £

814,410

612,485

1,426,895

NOTE 1 RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES Net incoming/(outgoing) resources Depreciation charges Profit on disposal of fixed assets Dividends received Interest received Interest paid and charges Impairment of tangible fixed assets Decrease in stocks (Increase)/decrease in debtors Increase/(decrease) in creditors

Net cash inflow/(outflow) from operating activities

NOTE 2 RECONCILIATION OF NET CASH OUTFLOW TO MOVEMENT IN NET FUNDS

Net debt at 31 January

ANALYSIS OF CHANGES IN NET FUNDS Cash at bank and in hand Short term deposits

Total

24

Report and Accounts January 2011

309,896 504,514

295,753 316,732

605,649 821,246


NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 January 2011 1. ACCOUNTING POLICIES

e) Tangible fixed assets

h) Stocks

a) Basis of accounting

Tangible fixed assets costing more than £1,000 are capitalised and included at cost. Freehold property and land is not depreciated, with the exception of the swimming pool and leasehold on Lister House. Depreciation is provided on all other tangible fixed assets using the straight line method designed to write off each asset over its expected useful economic life. It is the company’s policy to determine the expected useful life of each asset individually, ranging from 4 to 20 years. The company reviews its tangible fixed assets (with the exception of buildings) on an annual basis and will consider an impairment of those assets where the carrying amount of the asset is higher than its recoverable amount; the recoverable amount being defined as the higher of the amount that could be obtained by selling the asset (Net Realisable Value), and the amount that could be obtained by using the asset (Value in Use).

Stocks of bought in goods are stated at the lower of cost and net realisable value.

The accounts have been prepared under the historical cost convention, on a going concern basis, with the exception of investments stated at market value, and in accordance with applicable accounting standards and with the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP 2005) and the Companies Act 2006. b) Group accounts

The accounts have been consolidated to include the results of the charity’s trading subsidiary, which has the same year end. No separate profit and loss account is presented for UK Sailing Academy as permitted by Section 408 of the Companies Act 2006. c) Incoming resources

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Voluntary income is credited to the income and expenditure account on a received basis, and if it is for a specific time frame it is allocated evenly over the period of the grant. Income from charitable activities is recognised on an accruals basis, and income relating to courses which commence after the balance sheet date is deferred to future accounting periods. d) Resources expended

All expenditure is accounted for on an accruals basis and allocated to the appropriate heading in the accounts. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. Support costs are allocated between the activities of the charity on a percentage basis in line with the direct costs of those activities. An element of support costs is also allocated to governance costs on the same basis. Governance costs are those costs associated with the governance arrangements including external and internal audit and legal advice for trustees, rather than the day to day management of the charity.

f) Valuation of buildings

In accordance with FRS15, the trustees have considered the various options for the valuation policy on the building. It has been decided to continue to hold the property at cost. This value is subject to the requirement to test assets for impairment in accordance with FRS11. g) Investments

Investments listed on a recognised stock exchange are included in the balance sheet at market value. Investments sold are revalued at market value at the date of sale. The Statement of Financial Activities includes all movements in the value of the investment portfolio, including realised and unrealised gains and losses. The company uses investment managers with specialist knowledge of charity portfolios, and who are authorised and regulated by the Financial Services Authority. The charity has an ethical policy of no hedge funds, and no investments which may harm the marine environment.

Report and Accounts January 2011

i) Taxation

The charity is exempt from corporation tax on its charitable activities. Irrecoverable VAT is recognised as an expense in the Statement of Financial Activities within training and education expenditure. The trading subsidiary has not incurred a tax charge as it gifts all profits to the charity. j) Pensions

The charity does not operate a defined benefit pension scheme. A stakeholder pension scheme is operated for employees. The charity does not make employer contributions to the scheme. k) Leased Assets

Instalments on operating lease contracts are charged on a straight line basis over the lease life. l) Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The trustees have designated a fixed asset fund which represents the amount invested in tangible fixed assets to enable the charity to carry out its charitable purposes. Restricted funds are subject to specific conditions laid down by donors as to how they may be used or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

25


NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 January 2011

2 VOLUNTARY INCOME Donations Grant funding

3 ACTIVITIES FOR GENERATING FUNDS Events Gipsy Moth IV Yacht Racing Academies

2011 £

2010 £

95,005 9,057

13,120 8,364

104,062

21,484

2011 £

2010 £

2,298 0 18,700

0 5,104 13,396

20,998

18,500

4 INVESTMENT IN TRADING COMPANY UK Sailing Academy holds 100% of the share capital of UKSA Trading Limited which is responsible for the provision of commercial services on behalf of the charity. The charity’s investment in the trading company was as follows: UKSA Trading Limited

2011 £

2010 £

£1

£1

The subsidiary is registered in England and Wales and pays under gift aid its entire profits as computed for corporation tax purposes to the charity. Its results and balance sheet for the year ended 31 January 2011 are as follows. It did not trade in 2009/10.

Profit and Loss Account Turnover Cost of Sales

2011 £

273,151 (199,131)

Gross Profit Administration expenses

74,020 (17,389)

Amount payable under gift aid to the charity

56,631 (56,631)

Retained in subsidiary

£-

Balance sheet Current assets Current liabilities

58,580 (58,579) £1

Share capital Reserves

1 £1

26

Report and Accounts January 2011


NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 January 2011

5 INVESTMENT INCOME Dividends received Deposit account interest

6 INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

2011 £

2010 £

19,404 6,739

7,239 46,571

26,143

53,810

2011 £

2010 £

Funded places for schools/careers training Race Academies Schools and groups Recreation training Watersports careers training Yachting careers training

353,305 83,199 807,428 234,042 269,093 2,353,632

127,495 83,102 945,065 196,109 301,649 2,464,434

Training and Education

4,100,699

4,117,854

98,875 61,621

145,896 215,534

160,496

361,430

4,261,195

4,479,284

Student services and site income Ancillary site income - student shop and bar Student services and site income

Income in respect of courses that commence after the balance sheet date is deferred and recognised over the period during which the course takes place. An analysis of deferred income is shown below:

2011 £

Gross incoming resources from charitable activities Amounts deferred last year that have been released in the current year Amounts deferred to future periods

7 FUNDRAISING TRADING: COST OF GOODS SOLD AND OTHER COSTS Events Gipsy Moth IV Race Academies

8 COSTS OF CHARITABLE ACTIVITIES

2010 £

4,711,373 1,950,082 (2,400,260)

4,003,147 2,426,219 (1,950,082)

4,261,195

4,479,284

2011 £

2010 £

11,138 0 5,050

0 813 5,405

16,188

6,218

2011 £

2010 £

Direct costs Support costs

2,974,891 370,593

3,237,891 326,950

Training and education

3,345,484

3,564,841

Direct costs Support costs

877,348 109,295

1,086,139 109,700

Student services

986,643

1,195,839

4,332,127

4,760,680

Total

Report and Accounts January 2011

27


NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 January 2011

9 SUPPORT COSTS

Training and Education £

General and administration salaries General office costs Information technology costs Other costs

263,701 50,796 19,913 36,183

Student Services £ 77,770 14,981 5,873 10,671

341,471 65,777 25,786 46,854

Totals

370,593

109,295

479,888

2011 £

2010 £

10 GOVERNANCE COSTS Legal and other professional fees Finance office Support costs Auditors’ remuneration

11 NET INCOMING RESOURCES Net resources are stated after charging/(crediting): Auditors’ remuneration Auditors’ remuneration for non-audit work Operating lease rental for office equipment/vending machines Interest payable Depreciation - owned assets Surplus on disposal of fixed asset Impairment losses

Totals £

8,429 11,999 2,000 12,500

2,587 12,000 2,000 13,000

34,928

29,587

2011 £

2010 £

12,500 0 7,707 18,871 291,758 (4,307) 49,745

13,000 3,280 6,219 21,416 350,098 (14,717) 115,406

2011 impairment losses relate to the write down of the carrying value of the catamaran.

12 TRUSTEES’ REMUNERATION AND BENEFITS There were no trustees’ remuneration or other benefits for the year ended 31 January 2011 nor for the year ended 2010. Travelling expenses are reimbursed, if claimed, to trustees. In total £1,662 (2010: £1,535) was reimbursed to 5 trustees.

13 STAFF COSTS The average number of full-time equivalent staff employed by the charity during the financial year amounted to:

2011 No. Directly involved in achieving charitable objectives Management and financial administration of the charity

The aggregate payroll costs of the above were: Wages and salaries Social security

The number of employees whose emoluments exceeded £60,000 was: £60,000 to £69,999

28

Report and Accounts January 2011

130 11

2010 No. 122 10

141

132

2011 £

2010 £

1,893,445 156,967

1,774,680 152,225

2,050,412

1,926,905

2011 No.

2010 No.

1

1


NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 January 2011

14 STOCKS

Group 2011 £

Stocks for resale (trading) Inventories

15 DEBTORS Trade debtors for courses Due from subsidiary undertaking Other debtors Prepayments and accrued income

16 CASH AT BANK AND IN HAND Petty Cash Bank Current Accounts Bank Deposit Accounts Cash held on fixed term bonds < 12 months

17 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Due to subsidiary undertaking Social security and other taxes Other creditors Accruals and deferred income

4,116 159,130

Charity 2011 £ 0 159,130

Charity 2010 £ 53,520 133,134

163,246

159,130

186,654

Group 2011 £

Charity 2011 £

Charity 2010 £

904,479 0 1,246 229,007

896,577 56,631 1,246 229,007

722,506 0 832 94,793

1,134,732

1,183,461

818,131

Group 2011 £

Charity 2011 £

Charity 2010 £

8,230 597,419 296,246 525,000

8,230 597,339 296,246 525,000

11,791 298,105 254,514 250,000

1,426,895

1,426,815

814,410

Group 2011 ��

Charity 2011 £

Charity 2010 £

105,495 0 66,895 28,282 2,258,749 2,459,421

103,547 46,482 66,895 28,282 2,258,749 2,503,955

85,131 0 41,281 17,877 1,949,349

2,093,638

Included within accruals and deferred income is a total of £2,217,677 (2010: £1,884,895) relating to amounts invoiced in advance of the commencement of training courses. The following liabilities disclosed under other creditors falling due within one year were secured on tangible fixed assets:

18 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR: Accruals and deferred income

2011 £

2010 £

0

35,000

Group 2011 £

Charity 2011 £

Charity 2010 £

182,582

182,582

65,188

The £182,582 held within accruals and deferred income relates to amounts invoiced in advance of the commencement of training courses.

Report and Accounts January 2011

29


NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 January 2011

19 TANGIBLE FIXED ASSETS

Freehold land and buildings £

Long leasehold buildings £

Swimming pool

Equipment and Training Aids

£

£

At 1 February 2010 Additions Elimination of fully depreciated assets Disposals

2,331,625 30,033 0 0

47,295 0 0 0

200,180 0 0 0

666,160 24,205 (424,938) (9,459)

As at 31 January 2011

2,361,658

47,295

200,180

255,968

At 1 February 2010 Charge for year Elimination of fully depreciated assets Eliminated on disposal

73,625 10,979 0 0

3,106 478 0

161,814 10,009 0

548,952 45,746 (424,938) (9,200)

As at 31 January 2011

84,604

3,584

171,823

160,560

As at 31 January 2011

2,277,054

43,711

28,357

95,408

As at 31 January 2010

2,258,000

44,189

38,366

117,208

COST

DEPRECIATION

NET BOOK VALUE

Motor vehicles £

Yachts & training fleet £

Totals £

46,637 22,879 0 (14,914) 0

3,037,328 169,971 0 (301,956) (139,618)

6,329,225 247,088 (424,938) (326,329) (139,618)

54,602

2,765,725

5,685,428

32,319 12,287 0 (13,760) 0

1,293,145 212,259 0 (65,625) (89,873)

2,112,961 291,758 (424,938) (88,585) (89,873)

30,846

1,349,906

1,801,323

As at 31 January 2011

23,756

1,415,819

3,884,105

As at 31 January 2010

14,318

1,744,183

4,216,264

COST

At 1 February 2010 Additions Elimination of fully depreciated assets Disposals Impairments As at 31 January 2011

DEPRECIATION At 1 February 2010 Charge for year Elimination of fully depreciated assets Eliminated on disposal Impairments As at 31 January 2011

NET BOOK VALUE

Impairments in 2011 relate to the catamaran in yachts and training fleet, where the carrying value was higher than both net realisable value and value in use.

30

Report and Accounts January 2011


NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 January 2011

20 FIXED ASSET INVESTMENTS Market Value

At 1 February 2010 Additions Net withdrawal of cash investments Net unrealised gain on investment assets At 31 January 2011 Investment in UKSA Trading Limited

Listed investments £

Cash and money market £

256,755 172,176 0 295

321,702 50,000 (207,209) 0

578,457 222,176 (207,209) 295

429,226

164,493

593,719

Total £

1

593,720

2011 £ Cost of listed investments as at 31 January 2011

428,931

Group investments consist of: Listed in the UK Overseas money market Cash held for investment

429,226 150,000 14,493

593,719

Listed investments consist of: Henderson Global Strategic Bond Legal & General UT Dynamic Bond Trust M&G Securities Corporate Bond Tesco Corporate Bond 5% 2014 BP Capital Markets 4% 2014 Rabobank Nederland 4% 2015 Aviva 5.9021% Vodafone Corporate Bond 4.625% 2014

77,104 78,804 75,240 53,243 20,735 51,355 20,125 52,620

429,226

Report and Accounts January 2011

31


NOTES TO THE FINANCIAL STATEMENTS continued For the year ended 31 January 2011

21 MOVEMENT IN FUNDS

Unrestricted funds Fixed assets fund General funds Trading

At 1 Feb 10 £

Net movement in funds £

Transfers between funds £

At 31 Jan 11 £

4,206,264 215,200 0

(329,659) 322,818 56,631

0 6,596 0

3,876,605 544,614 56,631

4,421,464

49,790

6,596

4,477,850

10,000 23,626 0 0 0

(2,500) 3,001 3,000 14,025 38,288

0 (6,596) 0 0 0

7,500 20,031 3,000 14,025 38,288

33,626

55,814

(6,596)

82,844

4,455,090

105,604

0

4,560,694

Incoming resources £

Resources expended £

Movement in funds £

4,307 4,315,492 273,151

(333,966) (3,992,674) (216,520)

(329,659) 322,818 56,631

4,592,950

(4,543,160)

49,790

0 3,001 3,000 16,200 40,000 35,000

(2,500) 0 0 (2,175) (1,712) (35,000)

(2,500) 3,001 3,000 14,025 38,288 0

97,201

(41,387)

55,814

4,690,151

(4,584,547)

105,604

Restricted funds Swimming pool fund S Thomas bursary Baily Thomas CF Henry Smith Charity Gipsy Moth

TOTAL FUNDS

Net movement in funds, included in the above are as follows:

Unrestricted funds Fixed asset fund General funds Trading activities

Restricted funds Swimming pool fund S Thomas bursary Baily Thomas CF Henry Smith Charity Gipsy Moth GBR Yacht Racing Academy

TOTAL FUNDS

32

Report and Accounts January 2011


NOTES TO THE FINANCIAL STATEMENTS continued

21 MOVEMENT IN FUNDS continued Unrestricted funds A) The fixed asset fund shows the level of funds held as unrestricted fixed assets. B) The general fund represents the unrestricted funds which are freely available for use by the charity, including those generated from trading activities.

Restricted funds A) The swimming pool fund represents a donation by the Maurice Laing Foundation towards the cost of the undercover swimming pool. This has been included in fixed assets. The expenditure represents the proportion of depreciation on the pool in the year that has been covered by this donation. B) The Stephen Thomas Bursary was set up in memory of Stephen Thomas to provide sailing and seamanship experiences for young people between the ages of 16 and 20. The income for the year represents donations and bank interest credited to the fund. £6,596 was transferred to the general fund in the year to provide training for employment for two young people.

E) The Baily Thomas Charitable Fund granted £3,000 in the year for a residential sailing and watersports course in 2011 for the learning of disabled children from Mary Rose School, Portsmouth. Sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with the restrictions for their use.

22 RELATED PARTY DISCLOSURES The company was under the ultimate control of the trustees. David Lister, Stephen Chipperfield and Ben Cussons are also trustees of the Whirlwind Charitable Trust (WCT), which made donations of £25,000 in the year to UKSA for youth training activities.

23 OPERATING LEASES The company has an annual commitment of £7,706 (2009: £6,219) for lease of office equipment and vending machines.

24 CAPITAL COMMITMENTS The company has a capital commitment at 31 January 2011 of £30,041 for a new disabled lift.

C) The Henry Smith Charity has provided £16,200 in the year to support the employment costs of a Youth Development Co-ordinator, responsible for mentoring young people training for employment at UKSA, in order to maximise opportunities for disadvantaged and disabled young people from across the UK. There is a contingency to provide a further £47,700 in 2011, subject to satisfactory achievement of performance targets. £2,175 was spent up to January 2011 on the new appointment. D) Gipsy Moth IV was sold to private individuals in 2010, who have chartered the vessel back to the charity for a nominal sum each year. A donation of £40,000 has been made to UKSA to preserve Gipsy Moth IV and to enhance her profile, and to make her available where practical to the British public. It is also intended that the yacht be used to raise awareness of the activities of UKSA with disadvantaged and disabled children and young adults. An amount of £1,712 was spent in the year on maintenance.

Report and Accounts January 2011

33


REFERENCE AND ADMINISTRATIVE DETAILS For UK Sailing Academy Ltd (UKSA) Arctic Road, Cowes, Isle of Wight, PO31 7PQ

Senior Strategic Managers

HRH The Princess Royal

Jon Ely Niamh Cullen Erica Howard Daryl Pride Ben Willows

Founder

Auditors

Noel Lister

haysmacintyre Fairfax House 15 Fulwood Place London WC1V 6AY

Patron

Ambassadors Dame Ellen MacArthur MBE Hilary Lister Shirley Robertson OBE

Trustees David Lister MBE (Chairman) Christopher Allen (appointed July 2010) Stephen Chipperfield Ben Cussons Mrs Penelope Horne (retired July 2010) David King (appointed July 2010) Michael Koppstein Noel Lister (retired July 2010) Mrs Sylvia Lister

Advisory Group

Chief Executive Director of Marketing (to May 2010) Director of Finance and Human Resources Director of Sales & Marketing (from Apr 2010) Director of Operations

Bankers NatWest plc High Street Cowes Isle of Wight PO31 7AU

Solicitors Bates, Wells & Braithwaite London 2-6 Cannon Street London EC4M 6YH

Richard Beardsall John Berry                        Bob Bradfield                        Mike Bryan                                Edward Dolling                       Roger Edwardson                    Chris Fisher                        Jonathan Hadley-Piggin Ron Holland                        Penny Horne                        Linda Melton                                          Richard Palmer                        Rob Sauven                        Mark Sutcliffe David Wake                      Hamish Wilson

Michelmores LLP Woodwater House Pynes Hill Exeter

Company Secretary

02251024 (England and Wales)

Erica Howard

Registered Charity number

Investment Managers Rensburg Sheppards Investment Management Ltd 2 Gresham Street London EC2V 7QN

Registered Office Arctic Road Cowes Isle of Wight PO31 7PQ

Registered Company number

299248

www.uksa.org

34

Report and Accounts January 2011


Report and Accounts 2010/11