2023-12-31-accounts

Trustees'Annual Report The Nautical Institute Annual Report- 2023 John Lloyd FNI S thc kei. actiiitics and ?O?l aiid %cnw c Nl diiring- prugie55 against the StrategiL Plan. Ik of the Instttute contiiiues to PTOI'ide a elil lo I xecutive ryonbe Ixecutive Board he Nalltical In5tittite niaintained the mUTntntLiTn of ei"ent5 1£ nd dctiiities geiieratcd thrniighnijt aiir Cjolden Anniiet5ciTh. Ye1£ r li'ith 5ignattiTe eients Iio%led iii Mihverp, CJaPC Tnm'ii. kniid(Jii, Hamhiirg. SingapuTe, ShdiTll tl-SheiL c1nd Tn, theT Iuc1£ tion lip froii) oijr branches. nieetings M'eie in pet50n ii" acl(led i'aliie Ider eIigJgeT))eiit tliroiigli nieetings being eiploited i1.here po55ible. Oiie particiilarli. proIiiii)eiit el-e Iidnii Iiitcriiatiajial Shipping ii. atio Ivith the UK'5 fvleTLhcint NL ai!. Tidining Boaid 1[ nd Trinitv Hnii%e. Diiring thi% ei'ent Ihc IIK'.s Ilaritiiiie Nqinistei £innoiinLed a P1c Lkage ijf ttaining SUPP scafa. rL'rs Iroiii ULraiiie wliiLlI IiL,Ipt(I raise Ilie p aiid statLiS of this indLlStTr" eng and leg% nf global significaiicc. Lations vf the neit geiieT1c tion nge of safeh. aiid operational issues. g lean)ed tliroiigl) Iljllls. proiidiiig in SEdMtlI'S, thruugh IF'ebina15 Id iji aiir piiblicatinn.%, all of fuels a nd Bran n)) part oliliis progra ed ii"OTL un areas iiig the Iiccd fnr risks olgaiiln and otheT ale3 aintaiiiiiig Ivok-out, eiicln8cd spacc%. tlic Idge procediires, ijse oF.IIS dustTr' ieports hai."e indicated t. Thi.% sliarijig nFinfarmatiaii aisiI)g professioiial staI)dards oourro ing saf 3ndi 024 | Seaways | 5

Trustees'Annual Report Human element Thc Naiitical li)%titiitc ha% alw'a!% ttTraintained a htghli. technical focus bLIt in 7023 Il'e hai'e engaged much Tnoie c105eli' in the'hiiTnan side oFdi5LUSSIOn5, COTlSClOllS that approxiiiialely. 41 /& of oiir ii)ei))bership 120?0 Iiguresl are lull or part liine seagoing seafarers. inclliding oui cuttent President and Senior Ilice PTesident. The i"ieiis oiFoLII 5e1c going tnetnbet5 hair heen rcpre8eiitcd at all Itiels. at IN.IG) aiid at 12rious high lei'el global speaLing opportuniti￿. and through stTung Lo111£ bordtion i1.ith 5e1£ farer5 Lhaiitie5. -d5 eitteiiieli well ieLeii-ed, Jija w't dle LoiifideIit fuhirc i&siie% I4'ill plai, 2 Le￿. rnle in call￿'illej￿g DPO. oFthe iilue oELuntinued Nl tneinbet5hip. 'e coi)liiiiie lo seek ii-a}?s of eiiliaiiciiig Ilie i'aliie of menibcT5hip thTough oui nienibei bcncfit offcis. IN'eiv ,In eiclusii"e discouiit of157, foi iiieiiibets optiiig tv studi fiji ali NISL UI IIBA quJlifiLdtiuii witlj .IL4 Cnllegc. Flee acce55 to the NlaTine SoLiety' 5 LeatnQ(t,Shvie coijrses. 7073 2150 saw the bioadening of the Nl s i))ei))bersliip crileriJ lo ii-elcoi))e iiiariiiers froiii thc fishing.lnd in11nd iiJ1tcThi',?i'. cDmmiinitic%. Ve die deliglited tu Iidl'e beeii giieii tlie OPPOTtuiiit! to proi'ide Iiiariiiers i¥orkiiig iii these fields ii'ith aCC￿S to prufe55ional bLx]i' tnenibet5hip. -,Is ilell ag oiir tr?dilioiial se3goiiig iiieTiibersl)ip base, the Nl continues to atttact membeis from i))aritiiiie %liore iiiaiiqgei))eiit po%itiniis, Iles£el TraEfie ScTh'ice (Iperators Tr,TSITrI, acadciiiic% and nthcr. from oui piofe55ional Lommunih.. ,{ jniiit iiiccting af tlic Execiitivc BnaTd. C>oiincil and YoungeT l.leiiibeT5 CuunLiI at Nl HQ in Decetiiher ?076 Ilie first siicli iiitreliiig Ilie. Nl ljas ei'eT held, offered iiiimense i.alue in teTms of the chai)ce to leani froi)) eacli oilier aiid excliaiige aiid dei'elop ideas Ear the future of the In%titute. Nl Branches indiistry'l re%t% priiiiaril}' M'ith oiir abilih. ta attract and ietain high qualih., piofes5ional, i"ounger menibers. Ille Lcin achiei'e thi5 thruligh a niiTnbeT uf mean5 hiit aiir greatest.%iiccc&s in ?1123 has been the oi'er ?500 students that haN"e ioined us, enjo1.ing free IIieii)beT511ip tlirougli tlitlT 5tudie5 aiid tlie fi15t i-eai oftheir eniploynieiil, lielpiiig lis siirpass oiir strategic plaii largct nE10,000 members, Ivhich tnanv thought unachiei2ble. 'Iliroiigl)oiit oiir i))aTlI' COI)EereJ)ces and social fiinctiaii8 cadct% have plai'ed a great part and art al￿.2%,S encoiiiaged to engage and speaL up on their needs, eipect1£ tIUT15,c 1 nd Loncein5. Gaining 5e1 Iii))e after acadeiiiic sliidies reii)alTiS a cl)alleTige for cadtt% iii niaiii, parts of Ihc ii'orld. Oiir Presideiit ias gTdiiicd fiist-liaiid cxpciiciicc of tliis bi i-i51tiiig acadeiiiic IrJiI)IT)g eslJblisliTnent5 globall!. ai)d at ei'cn. nppnrtiiiiih.. Bi. iindeT8taiidiiig thc real ii'orld sitllation, The Nautical Institute can dei.elop and Idi"ise on stTattgies to en5UTe th1£ t eiEn' Cr1det iTr"ho aI)ts to sail CJT) (lo so. The Nl contiiiiics ta encourage actiN'e yarticipation fioni all sectOTS of our n￿riti￿Tre COlliTnunih" and eiicoiir?ges iioi))eI) niJrilii))e professioi)als to be a [￿- part af aiir %iicce.%s.%taTh.. This iiieliides contribiitions to publications, articles in and appointments tu Cuuncil, YNqC and speaking Pr1nelli5ts at COTIEerences aiid iiebiiiars. Nl President Andre LeGoubin FNI at sea First ever joint meeting i of the Executive Boar Couniil andYoun9er Members'council btinging togethei delegates from Lah'ia, Lithuaiiia, 101113 31)d b'iI)lJiid for J IIN'el}' coiifereiice iii Il)e heart of thc ald cih.. The brajich cainmittcc 1% no￿, bu5?"iiig thetll5eli'e5 foT a piijgtaiiime of t￿entS and actii'itic% iii ?024. Kei" actiiities included ieiitali5ing brgiiclies SULI) as'll)e Netl)erlai)ds, ii.l)Icli110gled a packed ie-launch eient iii SeptembeT to much local iiidusty acclaii)). .4 siiiiilar effort iii Iiidoiiesia coiiliI)iies to gaiji tractinn Eo110I4'iiig a sct af i)h!'%ical IiicctiJig8 in Ihe 5ecvnd half uf the Treai, piithng the branLh un traeL to rc-laijneli in 20?4. IlIith onc nf tlic f2%tc8t gtom-iiig Iiiciiibc151iip5, it i5 I101￿. aIllOII¥T tIIL fivL Idigest brai)cl)es bi- iiiei))ber coiii)l. IlloiL into 2074 iiill include supportiiig thelguncli oEbraiid i)•4- braiiclies 11).] iirkei- aiid CFeorgia IT) tlie atc Spriiig, as ii'cll as Itali. latcr in tlic i.'car. Other f()cus atea5 include Nqeiicu, Eypt and Sijuth ATneriLa. Younger Members'council The YoungeT li lember5 Council IlThqCI had a strong "ear in ?O?- ,4Ltiiities included.. Dtsigiiijig ajid hastiiig 2 stries of ￿'ehi]i￿r.$; CteatiIig iideo Lunteiit- I'ritiiig ?rticles for Seaways; Engaging mole closeliw ￿'ith branches and local colleges aiid theI)ts., tknisijig tlic profilc oFiIidii'idual iiieiiiber%. The IThIC s main PliUTih. f(Ji 70?4 }iill be the fnriiiation and %iipport nf a glab21 ba%c nf I'niingcr .lembeT,4iiiba55aduT51ITh.L451 tasked ￿..Ith eiig£iging studei)ts ai)d cadets Jl Il)e local le￿e].']1)est Th,l.Is iiill be Lei". diiN'ets of Tectuithient and central pla}wetS Jz MEMBERSHIP AND BRANCHES As the leading piofes5ivnal iJtgani5dtion in the The Younger Members'council aclii'ities. prioritie.s and eiigageiiieiit_ Hal'ing a stroi piesence globalli. helps ensure Lei" piofe5sional [ne5￿ge5 die shdTed effeLtii'eli" cind 15 L)ne Te1£ activities etTectiie. Mernber5hip diiring 2021 reaped the benefit of sigiiificaiit exposure diirii)g tl)e vear aiid Jt tlie eiid OF the Trear. total Iiienihership stood at I175S, OE ,honi 2,915 were student membeTS. The deLisiVll tu oiffei free student meTnbeT5hip from late ?022 has been a kcN. driier aEgroii'th. ,hile special piomotions such as offets to ￿lIa￿le PofiitinTllllg OpeiatOT5 1 DP051 dnd specific bTi1nch proi))otioiis hai'e helped to delii-er sigtiificaiit Iiiiiiiber% af iieii. paid mcmbcrships. Inipioi'ing Tetention is a kei" prioiih.. In late 20?3 Cmmar presentation I (e￿monY 2023 Pa8itiaiiing (DPI Biilletin e-neH'sletter, designed to SUPPOrt membeTS of the Nl who are also DPOS. This 6 | Seaways | June 2024 Read Seawoys onlir)e at wvlw.nautin5t.0f￿Seaway5

Trustees'Annual Report in the ietention cind cunier5iun tu full membe[5 OF Gieen House Ga5 IGHGI eTniSSiOllS Ilittp5..IltinTri]Tl. Chartered Master Mariner ICMMarl le cnntiiiiie to %iii)i)nrt Ihc Honaiirahlc Compan! nflla.ster Nlarincr% IHC,N.INII in this pragraiiinie, indicating the highest leiels of achiei'enient in the seagoing piofes5ion. NlanTr' a%i'aTds oFClI￿12[ ale made to uur 5eniui tnembets fruTn aiound the iiT)Ild. '11)e Nl alg) Eon))ed a special fociis groiip lo siipporl oiir ini'oli'ciiiciit ili tlic STCIV revieii,, led b}.. Dr lalek Pourzaiijani FNI. IALA Neil Dulling Irightl presents a video with David Patraiko The Nl continues to W'OTk closelp with IAL4 and is Tepre5ented bi" Jillian Catson-jaLk50n FN'I (Past Pie5identl ii.hu Lhair5 I1"vILing gTOUPS Iti the lrys Coi))i))ittee aiid l)Igital 'lecliiiol0￿. CoIi)iiiittee. We ii)aii)lain a close rel.,Ilioiisliip aiid Ilie lJll.4 secretarial enntijiuc to oEter contributioiis to Nl publications. Armillary Club .1 liis aliiniiii groiip Eor loiig-leri)) niei))bers and siipporterg of'l lie Nautical Iiislitiite contii)Iies ii-iil) it% SLiccc88fiil programiiie af light-toueh technical mcctiiig.% w'ith 311 opix)rkniiiih. far engagetnent and neth"oiking. Lkleetings ale held 3-4 tinies per i"eai. and keTr pie5entations ale repeated at th"ffeTent times of dai. tu ensiiie nieTnbeT5 h£1N'e 1£ LhcinLe tu attend no Tnattei .hiLh titne zune thei. ale in. The Cliib ieTn1c in5 open lo i)eii' ii)eti)berg, aiid lie are gratefiil for tl)eir oiigoii)g siipport of Nl iiiitiali%es, PdrtlCLilarl}' iii tlie fielil of traiiiing and ediicatinn. OCEAN Project The OC&IN' IOpetatOT£enteied Enhancenient of ,4I131eness in Naiigationl PToject is a thTee }weg1 EU HoTIZUn PTujeLt to iiiiprL)ie nai"igatiunal Safety. IhttPs..I1uLean-naiigcitiun-a￿..a[tne5￿.tUI. The Nl egds hio ii"orL packages II) tl)Is project. Oi)e fociiges oil 'b-.Iil)ai)ced l)rofegsioi)al Siai)dards for Siliiatioii ,414arenc%s 2nd I4'ill resijlt iii a rcpart oli iiiii)rnied prnEe&%ioiial st2iidard8, a scrics of i'idcn% Iiiglilightiiig iTnpioi'ed training standaTds, and ieseaich into iTnpioi'ed opeiatOT decision making. The NautiLal Institute 15 takiiig the lead ijn di55eininatiOn, CUTnmuniLatiun and eiplr)itatiun of the project fiiidii)gg. iiiaLiJig iise of a rqi)ge of iiiedig ineliiding rcp)rts. i)rcss rclca%c%. ii'tb%itc ho.stiiig, 'ebinar%, social mcdia, ajid pnlic}' i)2pcr.%. Progress this ieai included a Teport on -dcntifie3tion of the Toot causes of nai"igational aLLidents, 3 ietK)rt un impiui".ed upeiator deLision mak.ing. and llUTnetOU5 aLtiiitie5 tu tt!" to iedLILe 4-liale strikes. '11)e ii'ebsite l)ttps..Iloceaii-i)ai'igalioii- aii-JreTiess.ev coi)laiiis iiiai)i' resoiirces iiicliidiiig reporL%. i'idcos and Jicii's abolit tlic i)raject. .&% part olthe projcct, ii'nrL rclatcd to rediiciiig .hale strikes has Tesulted in the liistitute s Seiiioi Technical.4dii5eT, Capt,4]i. ElsaN"ed AFNI beiiig elected bi" the InteTnational Ilthaling Coiiisni55iun Illl'c I to iepie5ent shipping i5sue5 at theii futUinS. The Navigator Aly Elsayed and Ericsson Kwan preparing to demonstrateVR training aids atthe ,, IMO Maritime Safety Committee in June 2023 RESEARCH AND RELATIONSHIPS The NaLltic21 Institiite s technical engagenient IS led froni the Research and Relatlollships aiea of the oigani5cltiun helps en5111e that OLlI II'L)Ild-le1£ ding eipeTtise is dtliTreTed iinde15tuod in the Tight IMO Tile LNI reiiiaiii% comiiiitted tn its role a% a N'oii Cjoperiiiiiental Orgaiii.%atinn INC,01 at the INIO. Dliring 7023 14e haie been represented at all appiopriate meetings including.. The tnciin puliLI'_Tn£1king CumTnittees". F.4L IF£lLilit1c tiunl,- .P'.G11.egall; NIEPC (Nlariiie E￿￿'iT￿nn1ent Pr(Jtection),. ISC. INl3ritiiiie SJleh. CJaiiiniiHeel. The technical Siibcommittees-. SDC Iship Design and ConstrLiCtionl., IHLlnlcin EleTnent, TTaining dnd Ssb.. Isliip SNsleTns ai)d F'.qiiipiiieiill.. )R Il'olliilioii I'reieTilioI) aI)cl Reswi)sel; NC.SR INai'igatiaii. RJdi()cotniiiiinieations and carch aiid Rc%ciiel.. 111 Ilniplementation of INIO Insttumentsl" and Icattiage of CaTgoes and ContaineTS1. urLing gtUiiP5 5peLicilising in LK.laiitime. AutOTiUtnuu5 SurfaLe Ship5. Gieenhuu5e Gas recliiclioTI aTid tlie rei'isioi) ol S'l'C.11.' '11ie Iiisliliile1i3s SLibt))Itted papers, participated activel}, in di.%cii.%sinns and in carrespondcnce groiip%. The camiiiitiiieiit to the Ill .10 and phI￿le￿I attendance at nieetings is crucial to OUT Impact in this furum. Hligt thic nk"S Tniist be gii-en tu Cc1Ptain Rubert MLCcibe FN'I IP1c 5t PTe5identl for hi5 COTntnitTnent to Il)is il'ork ag CliainiiaTi of oiir 1110 CoiiiTiiiltee. 'e sl)3re regiilar reports of oiir actii"ities ii) S¢awo and thraiigh ii'ehinar%. Qiir neH'cst W'icc Pre%idcnl Ncil Diilliiig, FNI gal'e a i'idta inten'icH' iipdating our menibers on changes in regulations goierning N¢7vigotor readers at sea The_lui-igdtnr continues hi receil'e a M'idc raiige olpraise from maiii. rcadcrs. principall}, frniii tlic Tgct aiidicncc oFjiinior nffjiccr5 biit also fvoiii niorc senioT officeis. Ila5tCls and shoic nianagciiicnt. The CounLil are gTateR]l Fui the 5UPPOft frotn IF.4N cind tlie IiiaIii otliei fiiiaiicicil coIittibutOf5 to t1115 PToject. ociis areas for l-he JN.ai'tgdtor iii ?0?3 iiicliided and thc liot topic al,IIS, ii'itli contrihiitinn.s Irniii tlie L4L4 aiid liitcrjiatiniial C.haiiiber nFSliii)piiig IIC.8j secTetaiiats. Council thanks all those I￿h0 contributed to TITe NJ 'Ui'rgotOT Il'lth aTticles. letters, distribution, Funding £ind not least the 5teadi' 5treaiii uf 'Ncli.SiiclP' tontributOTS ii.ho Lon5tantli' ainaze us M'ith the crealii-e pl)otos seiit 11) froiii tlie readers. Membership and industry engagement Tiic Nl coJitiniJes thc drii'c to engagc niir Jiicmbcrs and the ii'idcr entniiiiinih. to sliarc ide2% 2iid Icarii from each other. Illebinais in ?073 atttacted ?,000 Read Se(7Wt7ys online at www.nautinsLortyse3w3ys June 2024 | Seaways | 7

Trustees'Annual Report partlLIPclTit5 the feedbdLk. hoin Q&.,4 and ciigagtiiieiil pnll% fecd iiito arcas IiLe.SedM￿)¥ articles -Ind 1110 inpiit. The In.stitiitc 8 Ttehiiical LinLcdln Cyroiip is Tn1c naged bi" Capt E15ai"ed. 1£ nd has oi.ei 30.000 niei))l)ers wl)o debate areas oEiI)terest froin a w'ide lange of subjects. RegLIIg1 ilTitten 5uTh"eis help shape Ihis has ineiitabli. tneant a foLus ijn tIJPlL5 5IILh as decarlX)iil￿tjn￿. th"gitI￿tin1Tr. sliipknArd ai)cratian%, 5afeh" uf naiigatiijn and autUTiOtniJus 5hippiiig. In all that I4'e do, ii'c aiiii to %liarc ajid aiiiplifi. tlic i'aicc aiid cunLetn5 of seafaTeT5 espeLiall}' ii.hen Lei. Lunientiun5 sucl) as S'l-cll., are ui)der rei-iei¥'. Floni cadet to Nlaster, all Nl nienibets hgl'e access to Seauu)'s, botl) as a Iiieaiis of professioi)al dei'elopmcnt and as a platFoTm to he hcard. FrnTll first persoi) ii)len'ieii's sli,'IriI)g ii-liJl il is like lo be at sea or comiiig a%linrc- t(x]a!' tn dctailcd rcpnrtiiig fraiii IN.10 Tneeting5, teLhniLc1 l artiLles uii DP dtive-uffs and hig iiiaiinciJi'rc%. ijpdatcs on Ill iiiitiatiiwc.s %iieh a5 the gieeii Cu￿]lu[U71i, di5LU5510tI uti the TlSk5 and Revie simiilation, 5hiphandling training and leadeTship issiies, aiid ￿'t woiilcl IILe to tlianL all m.lio tale part. INFORMATION AND PUBLICATIONS ITi Ilic fiT5t Iicilf oF-O73. iiileTITTI COI'CT Il<l5 p￿￿'[ded bl Il)e Cl)ieE P',xeciitiie iiho oi'eruii" seieral 1K￿k iepiints and the launch on I lune of the 13th edition oF'lli¢ Admiraltv ,Vlanual 0(Seama￿.9hlp I..IIIOSI- a signatlire title authoied b!" The Roi21 Nai!", ii.ith l)oiii tl)e liistitiile liolds a close a&9{￿la101}. A wcbinar.%lip￿rting tht laiinch attended bi" Tnoie thc1n 450 people, Fcll Tnijie than ii.uuld be expected at a plii'sieal hook lauiicl). F'urtl)er iiehinars £ITC planTlC(I for C<icII TlClI- book to lJiinch in ?a?4. A i)eii. HeJd of ITiforiiialioi) ai)<l I iiblicatioi)s joined the Institute on I lune ?073, and has spent the first six ii)otiths settiiig the depJrtJ))eJit'5 priorities and deieloping an gnibitious ii'orL plan to the end nf ?0?4. A ncii, qiiartcrl!. piiblic3tiaii% iieii'%letter Eeahiring neiv and existing title5 11-1c 5 e5tabli5hed in.liigu5t, targcting the hii%inc%scs that accoiint for Jiinre thc1n 90Yo ijf Nl buoL 5cile5. Alieadi" thi5 h1£ 5 been THE ADMIRALTY MANUALOF SEAMANSHIP oFtn3nagement onboaid and off, SeaHA(Ii's gil'es a K-oice lo oiir Iiieiiibers, aI)d eipresses tlie depil) ol Ln0I4"ledge and diiersih". of opinion to be found ￿,]thin 'Il)e N3vlicJl Ii)stiliile_ Ei'cTh' Inniith. the Facil% 2rticlc and nnc othcr major fealuie aTe sh1( red free on The N'autical In5titiite s 'ebsitc.,Irticle% are %clccted tn promatc di8cii8%inii, 5haie imwrt3nt 5afeh- infuTmatiun, and highlight the rai)ge of topics coi'ered II) tl)1s i))aga/.Iiie. In 7024, Il'e iiill be embaTLing on a progtamme to refresl) tl)e appearaiice ol.%eawa)ys to lake lis Iliroiigli the neit decade of deliieTing thi5 ii'ideli" iespected, autliorilatii-.e aiid leamed 11)diistn' jouriial. MARS 2023 The X'l s Nlariners.4ccideiit Reportiiig Sclieiiie IIN.I..KIISI piibliglied a total of i8 reports 11) ?()? Of these, ?0 ieports ii'eie from piii'ate indii".idu215', a fiirtl)er 38 reports th.-ere edited froiii Natioiial niestigatiie,4gencies. This is an inLiea5e of prii.ate 50uice TepuTts uvei 20?? and tlic trend tnii'ard fei¥'er rcpnrL% fraiii i)rii'ate uILe5 Seei￿5 to h3N-e 5tabilised, altliuiigli it i5 still Inii'er than li'e ivauld I4'i%h. Illc dn haic sniiie supeT-conthbutois suppliing us ￿'ith ieports, but oui goal Is to broadei) Ilie report soijrce pool Fiiril)er. 'I'l)e important goal foT hL4RS of shariiig less0115 leaiiied puichases. ITI October ?0?3, tlie II)sliliile ilas pleased lo launch the 3Td edition oFBulk CdrTrer Prdctice IBCPI. A iieii. piiblication Iklariltme Securit! A Practical CJuidE [nr.IldrinEf8 Illarsecl H'as piiblished in DeLetnbei ?076. Tagethtr thcsc hooks, alaiig ii'ith our existing title5, deliieied the highest dnnii£11 gt055 &11e5 of In 20?3, ￿"e enteied into a second agteenient iiith prob'ider olTnJritlTiie e-bools iil)o i% Ill liost Nl digital publications on theii plattOTm. ,4t least hi"0 furthei agreeiiienls are plaiiTied Eor ?0!4 iipon iil)ich lie expect ta ii'itiie%8 a.%law. hill %teadi' iiicrca8e iii c-l)ao Sc11es. CiirrentlN" e-books dLLuunt fuT 57fj of Nl buuk 8alc% hill thi% is likcli. ta be closer to 1071 jii ?0?4 Thc Nl,IRS NJiitical A￿711?￿ tcs spon5nrship schcTllC TeTnains strung, Is"ith 57 5PUtISUT5 at the end of ?073. These %ponsnr% reprc%cJit a tnil!. global group that 1% a reflectioii of oui iiieiiibet511ip. QUALIFICATIONS Seaways Oi'er the lears. Scam'oys lias reflected the lilts and caiicer]i% nlaiir iiieiiibers, and is closelF' integrated ith the iTridei LunLem5 uf the Institute. In ?0?" OUT thi]aiiiic Posltioning (DPI 2ccieditation aJ)d cerlificatioi) actii-ities relnaiii ceT)tral to oiir contribijtion to ii'ider maritimc saletb., 2iid tlie prnce%s 15 kept undeT Luntinual Tei"ieiN'. Attendees atthe DP RegionalTraining Providers event 8 | Seaways | June 2024 Read Seawoys onlir)e at wvlw.nautin5t.0f￿Seaway5

Trustees'Annual Report C105e Lvuptratiun i1.ith OLII 5takeholderJ i5 a Lei. 8tagc in thi% prnces%. 3iid K'c ii'ere dclightcd to hast OUT third face-to-face Regional Training Pioi"iders ei'ent in ShclfITI-El-SheiLh, Egpt, in September 21123. '1'1)e tiTr(F(lai COTifereiice discii&sed ufe DP opetations, inipToiement in training standards, and the Nl nicindc1tut%" CPD SLheTne15ee bel￿￿.} and Ils iii)pleTiiei)talioii. ..Ipproxiiiialeli. l 00 delegates attended the confeTence, including 43 training centre iepiesent1c tiyes. the end uf ?0?6, ? iOO DPI.Tr.I lugbooks haN'e been issiied, and 413 DPI'_Iq ceitifjcates li2￿.e beeli issiied. The gtandfathering Evi ￿￿eT]enLed engineers closed on 31 Deeembcr 20?3. Ballast Control Operator Accreditation Scheme The Nautical Institute 5 Ballast CuntToI OpeTatoi IBCO I Schcnie ]% stahlc, aiid ii'c h21'c i%%iicd 38 BC.O cethficate5 thi5 j-eai. Oiie clPPlOi'ed ttc1111iiig ceiitre iii Poland lia% reaecrcdited in Fchrii2rt. ?073. Introducing CPD for DPO revalidation ,4s p2rl of the oiigoiiig rei'ieii" ol the DP qu2lilication piocess, The Nautical Institiite is changing the ieqllilttnents foT ieTriliddtiun ijf the Nl DPO and Dyiiaiiiic Pn8itiniiing Ile%8el Nlaijitaiiier IDNTrII certificates. To tnaLe surc that DP OPCTators Lcep pace with dei'eloping standaTd5 in a fa5t<h1£ nging indi15t￿-, l)I'Ob 'iiid l)I'l/l.l LerliliL:Ile liolders rel)￿% iiig Il)eir certificate8 as OF I laniiaTr ?024 11"Ill naw" bc asked tu detnun5trate eithei Nl-clppfoTrEd Cuntinuing )rolessioiial l)evelopTiieTII ICI)I)i or lo coniplete Ilie DP Refreshei and Conipetenc!. A￿ess￿lent Course. This is in additiun tu the manddtuTh. l So dais uf DP sea tiiiie.'I'lie website lias beei) iitxlaled ii'ith all the Tcqiiired inlariiiatiaii aiid FAQ8. The LNI h1£ 5 £1PPTON'ed hi"u CPD SiipplieTS, ILI,IC,4 Keelsoi). aiid sil fiiril)er applicalioJ)s froiii CPD 8iipplicr% are iii prngrcss. DP certification and accreditation Oi'eT the LUUTse uf ?0?3, II"e Teceiied 1,161 unliTJe dppIILalioiib lor [)[' LL'rlifiLalioii, ol %i.IIiLlI ? (rf)6 IL're nem. applications, 4,533 were for ievalidation. and ?8 weie fuT LUTiI.eT511Jll. 'Ilie Ke!. I'erforiiiaTice II)clicalor IKI 11 for piocc%sing DP ccilificlÉ tinn £ippIic4ltJans is tcn working dcliS FruTn ieLeiN"ing the dppliLation. The leaii) Is perEormiTig aboi'e tliis, at six ii'orLITig dai% frniii d3tc of reccipt. Appr()ved training Lentre5 4Ke ciirrei)Ili. liai'e.. 80 3ccrcdited DP traiiiing ceiitres ii'orldii'idc 1.4nieiicas 19, knia &-.4usttalasia 28, Eutope and AfriLa 331; 50 traiiiiiig centres appraved lar the Rei'alidation CoiiTSe,' 21 trciining LentTe5 appiui.ed fui the DP le5sel 1¢liiilJiiier11)14'N,11 Scliei))e; 26 trc?ining centTes appioi.ed for the Sea Time RtdLILtiun ISTRI Coiitse: 26 Ir¢liiiiiig ceTilres approi-ed for tlie DP Refresl)er and CJQllll)eteiici' K%scssment CJoiirse; 5 tr£iining Lentres apprui.ed fiji the Shuttle Tr1nkei Coiirse,. 4 Iraiiiing centres apprni'ed Ear the DP Eniergenci. Ship Handling ReLugnitiun Coiit5e. 2() Ilccreditalioii aI)cl reJccredilalioi) aijdils ii-ere 8chcdiiled lar 207" ). 0[￿.hICh ? l ii.crc coniplcted. DP Vessel Maintainer Training and Certificate Scheme (Engineers) Thc DP le88cl Nqaintaincr Scheiiie for engineers ilas introduced in ?0? l and continues to piogtess ￿'ell. Bi- Oil Spill Response Accreditation Scheme The Oil Spill Re5ponse,4ccTeditation Scheme no c￿e[S Lompdnie5 PTOI'idiiig tTaining andlur Te5pundeT seTh"ices. Iii ?0?3. Me accredited ilie first oil response compan!" uut5ide the UK, and oui expertise in respnnder accrcditation li'a% sniiglit alit b!, regiilatnr% in.Iu5ttalia lookiiig to establish theii iJii.-n 5cheiiie. A and peers to rei"ieii' options foi the deiwelopnient of Il)e sen.lceg goiiig fornlard. In 7073, ?] companie5 H'eie aCCTedited to pioi'ide ttaining, and fouT tu prvside uil 5piII iespun5e seTriLe5. cr the coiirst of tlic }'car, l-, traiiiiiig coJnpanic8 "eie te-aLL Tedited 3nd h4".L) neH' I￿eMbe[S juined the scheme. Sharing DP expertise in Seaway5 The Nautical Institutevessel Traffic Services (VTSI Accreditation Scheme (IALA RO103) 'Ilie l..11.I l."I'S Jccreditalioii sclieiiie Is stable i¥'itli oiie approicd training proi'ider in Finlaiid. 11.'c arc iii communiLatiun ii.ith a trainiiig Lentre in Thailand fui the atcreditation process. . ;, The Nautical Institute Ice Navigation Scheme The Nl Ice Nai'igation ScheTne continues to offei qiialificatioiis to officers Iilio iiieet tlie staiidard. ,In additional training centre in Canada ￿..￿5 ai)PTON'ed In ?0?3. Captaiii Dukt Snider FNI (Past Prc%identl iepTe5ented the INI at the 11.10 PulaT C(Jde 14lyiL5.Iiup meetiiig in_lrgciitina. Thc l%1 10 CJireiilar HThl.'11016, 'ui"eTnbeT ?073, 5eLtiun 6, TtLU&115ed The NautiLal ITiStiliile Ice Ngiigalioii Sel)eJ))e. NAUTICAL INSTITUTE ACADEMY The Ndutical In5titute,4Ladeiiii' INL41 has had (1 b1151' 'ear, ii'ith seicral Lc!. milc%tone% achicied nn thc patli to CTeating cl purfoliv L)FLOU15e5 designed tv dei'elup and niirtiirc both scafarcr% and thn%t ciiiplol'cd a%hare thtuiigh focused piufe55ional des'eloptnent. the.Icadenii" has M"idened the coutse portFolio. Additioi)3111-. 11)e iiiii))ber olcoiirse dales Iboil) opeii and compalli. Coutsesl continues to glow. in response tn cii%tniner coi)fidei)ec 'iiid iii;Irket dci)).1nd. Soiiic eoiirscs arc prni'ijig iiiorc ￿pillar tlian otheri. liith thuse LOUt5e5 that enable the student to dei'elop eiiiplol'iiieiil p311iii.avs heiiig iii Ilie highc5t deTnand Ithc IFII IE£1d iliiilitnr, Dc5ignated Persoi) Jisl)ore, ai)d hlai.lgatioI).￿sse5s0r coiirses leading the ￿."￿￿). Read Se(7Wt7ys online at www.nautinsLortyse3w3ys June 2024 | Seaways | 9

Trustees'Annual Report .411 ntiv illSttULtUT5 h£11e been thTuiigh cl Nl.4 Ttai thc Traiiier CJniir.%e, eqiiii)piJig theiii teach oijr studeiit5 effectii'eli. diid iIi liIie iiitli oui specific Tiiode and sh.lc nf delii'cTh.. The l'ast iiiajarih. of eaiirscs are delii'eied iiTkn211i' and student feedbacL acr055 the 'ear has confiriiied that this is the preferred n)ode of delii'eTr'. Ho%i"ei'ei, H"e hai'e conducted compani" LUUTSes on a faLe-ttpFdce b1£ 515 thi5 iedi, in dcLutdanLe 'itli clieiit preEeroiice. Nqoi'ing inta 20?4. one neH' client hcl5 ieqiie5ted Fcice-to face training at theii Cjreek iiid C.roJli'.In nfficc% Jiid ￿'e Jre ii'cll pl:Iced to dLliNei tlii5 tsa]Iiii￿ duc to tlie iIicred5e iii tlie lectiirer pool. The NLI developed and ran 2 diploma coutse based beh£11ioiiral LompetenLTh. fiji the BTlt15h lariiie Agrcgatc Prodiicer%.Issociati(Jn IBIL4P.II_ The LUUTSe ItLeii"ed high praise fruTn CeTnei 1[ nd Tarmac delegate.% and Bll.4P.4 is keen for it to he extended to Euiopean opeiatOTS. 'Ilie Naiilical ITislitiJte gJii)ed approt'ed stahts IT) FebTllati, ?3 25 a training centTe of the Instih]te of Lecide15hip cind Nlcinagement jlLIII. The CuTnmand Diplnma Schcme w'as iiscd a8 the a.s%e&%nieiit 'ehiLle cind succe55fi11 student5 un the 5Lhetne now. gtt ali OEQiial Lt￿e1 i Ipost%raduatel vocational qudlificatiuii IRQFI. 'Ilie Seafa. rers Cl)arity' I'I'SCI fiinded tl)e dei."elopnient of a Leadetship and N.lanagement Cvuise pvrtfuliv diiring ?073. The LIJUT5e5 ieqiiiie the pplication of theorn. to praetiee and inioli'e reflectiie thinking. theiebi" driTring the student tu think aknut thcir ii'nrk eni'irontnent in their current and FU￿re ianks. Acliiilies ii) 20?31)Jie created a solid base for fiirther dei"elopnient in 20?4. In particu13r, the ALcideTlli' ii'ill be ii'oTking tu dttelup coll￿¢5 on altcrnativc fiiel% and biilk cargn l'etting IRighL%hipl, hile alsoi dei'eloping Tnoie hutnan element f(Kused coiirses. Tlie lsli I l.eJd..liiditor Ib isl)Iiig! coiirse ￿'3S suete%sfiJlli. dr2ftcd aiid imi)Icmcnted for thc iiitcniatioiul fishiiig indu5tn' and the coiiiincicial 5ectOT. The SeafaTeT5 ChaTih' is geneT011511. fuiidiiig foijr oEtl)ese coiirses, aI)d gal-e a L30,0011 grai)t lo Il)e Nl.4tadcJiii'. Curriculum The Green Curriculum l.'e continue to ii'orL t(M"atds the intruduLtion of a COI))I))OTI, recog)Ised traii)II)g prograi))iiie lo eiiglire crcii's liai'e thc knaii.ledgc aiid skills ta handle inn013tii'e fuels &qfeli'.,4 rei'ised position paper setting out tl)e tl)ii)kiI)g beliiiid oiir 'Creeii CiirricLiliiin' Mias published iji Jaiiiian. ?0?3. The initiatii-e gained moiiientum througliout 2073, and the Nl illi.ited to LiJntTibute to 5ei'eT1c I liigli- ei-el global groiips coiicenied 14.itli seafarer traiT)ii)g iii thtsc fiicls. Tiii8 iiicliided thc Nlaritiiiic Techiialngic8 Fotum IhrrFI 2nd the UN Global Compact lust '[ raTisilioii ILINGCI- Oiir Cp'o 14.as iiii'ited lo tl)e ITF eniiEercnct as a p2iielli8t dijring Sijigapore 131itime 11.'eek in Nl25. ?073. IlIe ieiiiain eiigaged ii.ith both gTOUP5, takiIig part ITi II'UTkshop5 tliat M'ill pr(M]uce reports lo be.%iil)i))itted lo Il)e IN,10. FINANCE Thc siwiificant Success achicicd in 1g1ious aTcas of the 1115titute s opeiati0115 ha5 beeii ieflected iii tlie correspondiiig fiiiajicial reg111ts lor tlie ￿tAr. Iiicoiiie foi 2U?I sJgJiiliLalltl} eiceeded budgptrt ds dLtii'iti I￿"t15 Tem3ined strong acr05S the entire porfolio of been achi￿,ed again%t expeiiditijre of £4.3 iiiilli(Jn iesulting in an opctational sutplus of £1 tnillion. Tlie opeTatlIl4 5Utplu5 ieflects (1 ieTh' 5ucce55ful l.egr gcross Ilie hoard, especialli." iii tlie areas ol .4]though the retutn to phisical nieetings foT the eciitii-e Roard, Coiii)cil JI)d i'ariollg COI))Iiiillees resiilted iii grtatl!. iiicrca%cd tr2K'cl ca%t8 diirijig 2023, oietall ei?endituie for the i".ear iemaiiied close to budget due to effeLtii'e L05t Lontiul. SAFETY AND ENVIRONMENT The saFeh' of peuple, 5hip5 1( nd the PTOtection of Il)e eIiTriroiiiiieTII are at tlie l)eJrt of ei-eniliii)g lie do 25 Institt]te. During 20?3, there li.as again a particiilar focus oti iinproiii)g safeh. it) tl)e fisl)11)g sectoi and in aiegs ielgttd to the inttoduction oFneii" fue15. NuiJJeTUUS drtlLlts uIi fi511iTILr d[Id tlie ciirriciiliiiii i¥'crc contribiited tO.SE￿}ra}.g aiid The NciiigatOT. SoLial media £1CtiNitie5 included [1 nUTnbei ofpodcasts. Fishing safety kept linder rcgiilar rci'ie14' in ii.h2t gcJicrall)J steadi" maiLet foi ini-.estments. The balgiiced loiv- J))ediiii)) risL w)rtfolio iI)iested Il)roiigli liqilil)oiies perfom)td %atisE2ctarili' agaiii%t mark.ct cniiiparatn￿. The Capital ReseThe Fund i?lue at i.'eai end ii"2s £4.0 Tnillion, ii-hiLh includes an additir)nal Ll tnilliun 11)Itsted iI) l)eceiiiber ?11?3, aI)d resiilied iii a total rehiiii of £16U.UUU foi- tlie Iijidiicial s-edr ii,liiLIi is a ieh]tn of 6.?87, on the oiignal iniestnient. 'Ilie Resenes polici" lias proi'ed to be ellectii'e and eiisures ihc Nl lias adeqijatt cover as a gaing caiiccm. Oil tlie fislii114T sid¢, Ive iveTe deliglited tliat tlie Iishing safetv. initi2lii.e il'as enihraced hi. the Nl BoclTd. In IcinLlan" 7023 the Nl upened [nem￿[ShiP STAFFING Fishing Safeh,,4di"is0Th" Gioup IFS.4GI niade up of '1 fisliiiig sJfetv experts lield Its iiiaugural tneeting in NoN'cnibcr. This graiip cooidin£lte5 INI fishing initicltiies siiLh c15 INIO TepTe5entation and 5dfeh" iniliatii'es and promotes the profession OE ljshing. The Nl PTOPUSed a ieLumTnend£1tiiJn tij the Ill 10 to eiidorse tlie UK b'isl)iiig SJEeh Ilai)Jgei))ei)t I b'SIII Code, m.hich M'as wartnli" ieceii'ed. The Nl continued to take its Tesponsibilities 95 all eTnploiei t(J it5 11-orLfuiLe 5eTiousI!-, iniesting iii staff traii)iiig aiid dei-.elopI))eiil I)eeds, aiid ofFeriiig bciicliiiiJTLL(I IM}. Jii(l flc.iiblc woik.iiig JiiJiigciiiciits ii.heneiei feasible. 111 gdditioi) lo regiilar slatTei)gJgei))ei)l acliN'ilies, tht Jiianagement tcam had an da!. in Aiigiist ieflecting on the Institute s fi￿e-yea1 strategy at its 10 | Seaways | June 2024 Read Seawoys onlir)e at wvlw.nautin5t.0f￿Seaway5

Trustees'Annual Report /r' The Nautical Institute HQ summer barbecue 2023 NAUTICAL INSTITUTE FOUNDATION Thc Naiitical liistitijte Faiiiidatioii i.s an indcpciidcnt chcirih" 401"crncd bi. fii"c tni%tCC5. thrcc of ii.lIoTh Lirc Itjdepeiideiil Iriislees aiid livo ivlio are officials oF'I'lJe autical Institute Ithe CEO and the Holi Tieasurerl. 'Ilie boiii)dalioii CF'O Is ciirreiiili- Ilie oiily. ei))ployee. The Foundation s iole is to be supportii'e of autical Institute PTogram1￿t5 aiid ethu5, but it plai'5 a iinique role in beijig able to siipport cdiication21 iieed5 foT the ii.idei Inaritime Li)i￿7￿Unl￿", nijt just I member%. It aims to rai%c fiinds from indii%try' P¥lrtiLipant5 3nd utheT inaritiiiie NG05 tu dei."elop ai)d delii-er its prograi))Iiies Jiid l)Js i)0 recoiirse lo peTm3nent funding froni the Nl itself. '11)e Nl boiii)dalioii seeLs lo eiigage H.-Itli iiidiistry leadeTsIp3rtners to identih. educational needs aiid doelop leamiiig 501utilJll5 tu tneet these needs. Of partieiilar iiitcrc%t at tlii% tiiiic 1% a programiiic OF aLtiiitie5 designed to undeTStand and PTUI'ide Ni5ibility' olthe cliallcnges of leader%liip tndai., hoth at.%ea aiid in ihc officc. '11)e Nl boiii)datioii aiins lo condiict a large cross- industh" TeseaTch sh]di" this ieai to uiidetstand the cl)glleiiges i))ore clearli.. Oil Ilie back- of Iliat data, it ii.ill dei.elop tools to piepaie the industTr' to thiiie OTice agaii). '11)e i4-orL i¥-Ill lead to ii))proi'ed i¥'orL sh.lcs aiid redijec thc strc% bcing Ici'ied nn %cninr leadeT5. including Nla5tet5 and Chief EiigiIieeTS, eiicrgisiiig them for thi.% ncii, ￿.￿r1d of di.sriiption and change, and helping to addie55 emplu}"'ee atttitivn in Ilie ii)dii.%tn-. The industh" suThei' ii'ill open mani. othei opportiiiiities for Il)e NIP. ai)d Nl lo dei'elop tools Foi the shipping conimunih". 11.'orLing ii'ith the 4-Ider coi))i))vi)Ih' Is Il)e 01)li' Iwai.- lo iii)derslaiid Ilie ehallengts and ￿p￿rhinJtie that lic 2licad. UndeT5tanding the i."alue5 ijf the Fuundatiutl 15 impartant and rcadcrs slioijld rcad last }Jear % repart ta iemind theTll5eli'es of those i'alues. Staff development event 2023 mid-point. .411-staff eients tuoL place in lull" £1nd Dccciiiber ta fiirther tnhAnce inter41epartnieJital staff engcigenient cind LiJll£ibuTc1 tiun and LelebTc1te Tnid-!"eai and ciid af Trear achiei'ciiienL%. Staff Tetentiun remained ￿tisF7£ LtiJTr" during 7023 I'iili Ilie lolal Iiiiiiiber of ei))ploiees ii)creJsiTig Erom 35 at the beginning of the ieai to 36 at the end of Il)e year.'I lie ni3jor iieii. Jppoiiiti))eiit iI) ?1173 lias the neM, Head of InfoinLqtion and Publications oiir ￿0[￿.forCe ￿"Ith our headeount expected lo reaeh c fOIITI(14n iTI 2n?4. 'I'lie ISO (IUU?..2015 Qlq LL'rtifiealioJi audit was once again held on slte li.ith no non-conForniities reported. 'Ilie iI)teriial aiidit proce&s and clear eTridence of nienibei 2nd custonier engagement seeTn lo be kei Eaclors It) the wjsilive report froi)) Read Se(7Wt7ys online at www.nautinsLortyse3w3ys June 2024 | Seaways | i i

THE NAUTICAL INSTITUTE

(A Company Limited by Guarantee) Company No. 2570030

FINANCIAL STATEMENTS FOR THE YEAR ENDED

31ST DECEMBER 2023

Registered Charity No: 1002462

THE NAUTICAL INSTITUTE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

INDEX

	Page
Legal and Administration Information	1
Report of the Trustees	2 to 8
Responsibilities of Trustees	9
Independent Auditor's Report	10 to 12
Summary Income and Expenditure Account	13
Statement of Financial Activities	14
Balance Sheet	15
Statement of cashflows	16
Notes forming part of the Financial Statements	17 to 25

THE NAUTICAL INSTITUTE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

LEGAL AND ADMINISTRATION INFORMATION

Status

The Nautical Institute is a charitable company limited by guarantee, incorporated in England & Wales on 20th December 1990.

The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. Under those Articles, the trustees are elected by Council to serve a period of up to 3 years and may be re-elected for a further 3 years.

Trustees

The trustees of the company were:

Mr P B Hinchliffe Chair Captain D M Telfer Treasurer Captain M Ahmed (resigned 21 March 2024) Captain K D Austin Captain A Brink (resigned 21 March 2024) Captain G Cowling Captain I Goveas Captain Y Vandenborn (appointed 21 March 2024)

Ms D Lane Mr G Lang (resigned 21 March 2024) Captain N Nash Captain D Snider Professor C D Dewey (appointed 7 December 2023) Mr S D Edmonston (appointed 7 December 2023) Mr D J Gozdzik (appointed 7 December 2023)

Secretary Captain P J Lloyd Chief Executive Officer Captain P J Lloyd Registered Office 200B Lambeth Road London SE1 7JY Auditors Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers The Royal Bank of Scotland 1 Spinningfields Square Manchester M3 3AP Fund Managers Rathbones 8 Finsbury Circus London EC2M 7AZ

Page 1

THE NAUTICAL INSTITUTE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Co. No. 2570030

The trustees, who are also the directors for the purposes of company law, present their report and the audited financial statements for the year ended 31st December 2023.

Principal activities

The Institute is registered as a Company limited by guarantee to promote and maintain nautical education.

Public Benefit

The trustees confirm that they have complied with the duty in the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit and that the activities carried out by the charity during the year were all undertaken in order to further the charity’s aims for the benefit of the Charity’s beneficiaries.

Objectives and activities

A detailed explanation is shown under Objectives and Activities on the Annual Report published in the June issue of the Institute's Journal, Seaways.

The work of the Institute continues to provide a public benefit to the maritime community by helping improve safety and enhancing the flow of information and knowledge in key areas of global significance. These include areas such as protections of the marine environment, the implications of the next generation of fuels and a range of safety and operational issues. Sharing lessons learned through MARS, providing updates on best practice in Seaways, through webinars and Branch meetings and in our publications, all form part of this programme. In the past year, this has included work on areas such as maintaining lookout, reducing the need for entry into enclosed spaces, the risks of gantry cranes, bridge procedures, use of AIS and other areas where industry reports have indicated a need for improvement. This sharing of information is central to our role of raising professional standards and improving safety.

Achievements and performance

. Membership and Branches

As the leading professional organisation in the maritime community, membership is central to our activities, priorities and engagement. Having a strong presence globally helps ensure key professional messages are shared effectively and is one reason why membership growth is important and branch activities effective.

Membership during 2023 reaped the benefit of significant exposure during the year and at the end of the year, total membership stood at 11,258, of whom 2,915 were student members. The decision to offer free student membership from late 2022 has been a key driver of growth, while special promotions such as offers to Dynamic Positioning Operators (DPOs) and specific branch promotions have helped to deliver significant numbers of new paid memberships.

. Research and Relationships

The Nautical Institute’s technical engagement is led from the Research and Relationships area of the organisation and helps ensure that our world-leading expertise is delivered and understood in the right forums at the right time.

The NI remains committed to its role as a Non Governmental Organisation (NGO) at the IMO. During 2023, we have been represented at all appropriate meetings including: the main policy-making Committees; the technical Subcommittees; and working groups specialising in maritime. The Institute has submitted papers, participated actively in discussions and in correspondence groups. The commitment to the IMO and physical attendance at meetings is crucial to our impact in this forum.

The NI continues to work closely with IALA and we maintain a close relationship and the IALA secretariat continue to offer contributions to NI publications.

Page 2

THE NAUTICAL INSTITUTE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Co. No. 2570030

. Research and Relationships (continued)

The NI is also involved in OCEAN (Operator-Centered Enhancement of Awareness in Navigation) Project which is a three year EU Horizon project to improve navigational safety (https://ocean-navigation-awareness.eu). The NI leads on two work packages in this project. One focuses on ‘Enhanced Professional Standards for Situation Awareness’ and will result in a report on improved professional standards, a series of videos highlighting improved training standards, and research into improved operator decision making. Another one focuses on dissemination, communication and exploitation of the project findings, making use of a range of media including reports, press releases, website hosting, webinars, social media, and policy papers.

The Navigator magazine, which is a free publication from The Nautical Institute that champions the role of today's professional marine navigators, continues to receive a wide range of praise from many readers, principally from the target audience of junior officers but also from more senior officers, Masters and shore management. The Council is grateful for support from IFAN and the many other financial contributors to this project. Focus areas for The Navigator in 2023 included risk management, shipping and the environment and the hot topic of AIS, with contributions from the IALA and International Chamber of Shipping (ICS) secretariats.

The NI continues the drive to engage our members and the wider community to share ideas and learn from each other. Webinars in 2023 attracted 5,000 participants and the feedback from Q&A and engagement polls feed into areas like Seaways articles and IMO input.

. Information and Publications

In the first half of 2023, interim cover was provided by the Chief Executive who oversaw several book reprints and the launch on 1 June of the 13th edition of The Admiralty Manual of Seamanship (AMOS) – a signature title authored by The Royal Navy, with whom the Institute holds a close association.

A new Head of Information and Publications joined the Institute on 1 June 2023, and has spent the first six months setting the department’s priorities and developing an ambitious work plan to the end of 2024.

In October 2023, the Institute was pleased to launch the 3rd edition of Bulk Carrier Practice (BCP). A new publication Maritime Security – A Practical Guide for Mariners (Marsec) was published in December 2023. These books, along with our existing titles, delivered the highest annual gross sales of publications in the Institute’s publishing history.

. Qualifications

Our Dynamic Positioning (DP) accreditation and certification activities remain central to our contribution to wider maritime safety, and the process is kept under continual review.

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THE NAUTICAL INSTITUTE REPORT OF THE TRUSTEES FOR THE YEAR ENDED

31ST DECEMBER 2023 Co. No. 2570030

. Qualifications (continued)

Close cooperation with our stakeholders is a key stage in this process, and we were delighted to host our third faceto-face Regional Training Providers event in Sharm-El-Sheikh, Egypt, in September 2023. The two-day conference discussed safe DP operations, improvement in training standards, and the NI mandatory CPD Scheme (see below) and its implementation. Approximately 100 delegates attended the conference, including 43 training centre representatives.

As part of the ongoing review of the DP qualification process, The Nautical Institute is changing the requirements for revalidation of the NI DPO and Dynamic Positioning Vessel Maintainer (DPVM) certificates. To make sure that DP operators keep pace with developing standards in a fast-changing industry, DPOs and DPVM certificate holders renewing their certificates as of 1 January 2024 will now be asked to demonstrate either NI-approved Continuing Professional Development (CPD) or to complete the DP Refresher and Competency Assessment Course. This is in addition to the mandatory 150 days of DP sea time. The NI website has been updated with all the required information and FAQs.

Over the course of 2023, we received 7,167 online applications for DP certification, of which 2,606 were new applications, 4,533 were for revalidation, and 28 were for conversion.

During the year, NI was also involved in schemes other than DP certification and accreditation. These includes DP Vessel Maintainer (DPVM), Ballast Control Operator (BCO), Oil Spill Response (OSR), Vessel Traffic Services (VTS) and Ice Navigation schemes.

. NI Academy

The Nautical Institute Academy (NIA) has had a busy year, with several key milestones achieved on the path to creating a portfolio of courses designed to develop and nurture both seafarers and those employed ashore through focused professional development.

Maintaining the impetus to identify training needs, the Academy has widened the course portfolio. Additionally, the number of course dates (both open and company courses) continues to grow in response to customer confidence and market demand.

Some courses are proving more popular than others, with those courses that enable the student to develop employment pathways being in the highest demand (the ISM Lead Auditor, Designated Person Ashore, and Navigation Assessor courses leading the way).

Activities in 2023 have created a solid base for further development in 2024. In particular, the Academy will be working to develop courses on alternative fuels and bulk cargo vetting (Rightship), while also developing more human element focused courses.

. Safety and Environment

The safety of people, ships and the protection of the environment are at the heart of everything we do as an Institute. During 2023, there was again a particular focus on improving safety in the fishing sector and in areas related to the introduction of new fuels. Numerous articles on fishing and the green curriculum were contributed to Seaways and The Navigator. Social media activities included a number of podcasts.

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THE NAUTICAL INSTITUTE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Co. No. 2570030

Financial commentary

The significant success achieved in various areas of the Institute’s operations has been reflected in the corresponding financial results for the year. Income for 2023 significantly exceeded budget as activity levels remained strong across the entire portfolio of activities. A gross income of £5,483,004 (2022: £3,855,119) has been achieved against total expenditure of £4,277,142 (2022: £3,490,611) resulting in a surplus for the year of £1,205,862 (2022: £364,508).

The surplus reflects a very successful year across the board, especially in the areas of Qualifications and Information & Publications. Although the return to physical meetings for the Executive Board, Council and various committees resulted in greatly increased travel costs during 2023, overall expenditure for the year remained close to budget due to effective cost control.

The management of the investment portfolio was kept under regular review in what was generally a steady market for investments. Management of the funds is delegated to external investment managers on a discretionary basis with the objective of maximising the total return from capital and income combined while maintaining a medium level of risk. The trustees review the performance of the managers against benchmarks on a regular basis. During the year, the balanced low-medium risk portfolio invested through Rathbones performed satisfactorily against market comparators. The Capital Reserve Fund value at year end was £4,048,078 (2022: £2,868,059) which includes an additional £1 million invested in December 2023 following a very successful year. The investment portfolio resulted in a total return of £180,019 (2022: total loss of £206,530) for the financial year which is a return of 6.28% on the original investment.

Reserves

The Institute holds reserves in order to ensure as far as possible that its objectives may be met in future and that it had adequate cover as a going concern. The target level of total reserve for 2023 was £2,070,000 (2022: £1,680,000) represented by Contingency Reserve of £1,380,000 (2022: £1,120,000) and a Projects Reserve of £690,000 (2022: £560,000). The Contingency Reserve target is calculated based on 33% of annual operating budget and the Projects Reserve is calculated based on 50% of the Contingency Reserve target. The free reserve at year end was £1,172,676 (2022: £1,147,039). The trustees consider that this amount of free reserves is adequate to ensure that the Institute's services are not compromised in the short term. The trustees recognise that the Capital Reserve Fund value at year end was in excess of the target level & are regularly reviewing the reserves policy, its position & possible use.

Risks and risk management

The trustees recognise their duty to anticipate, manage and mitigate the risks to which the charity’s activities could be exposed. They acknowledge that risk is inherent in all activities and that its management is crucial to achieving the charity’s objects. The trustees take a systematic approach to managing risk, with the executive team regularly monitoring and reporting risks to the board as well as prioritising actions.

Risks are rated by a mixture of a score for the likelihood of a risk from 1 (negligible) to 5 (major) and a score for its severity on a scale from A (very unlikely) to E (very likely). Scores before and after mitigation are calculated using a risk matrix.

The trustees review the Institute's Risk Management Policy at regular intervals. After considering the principal areas of strategic and operational risk, the trustees are confident that the appropriate means of control and mitigation have been adopted. Prudent management practices with awareness of changes in the operating environment are felt to be in place. The management of the Institute is responsible for the day to day management of risk and minimising the effect of any adverse events.

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THE NAUTICAL INSTITUTE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

Co. No. 2570030

Risks and risk management

The trustees consider the following as the key risks for the organisation:

• 1 Potential lobby at IMO to move DP qualifications to STCW Part A thus becoming the responsibility of Flag States not 'industry and the NI'. Impact likely to be loss of global market dominance of the NI of this specialisation.

This risk is mitigated by the NI continuing to engage with IMO delegates as well as media and social media campaigns relating to the importance of industry leadership. We also monitor adoption of other qualifications.

• 2 Inability to access bank funds

The Institute's funds are kept in a diversified manner with an operational bank account held with Royal Bank of Scotland while also maintaining an active investment funds with Rathbones. In case of any banking restriction, we are allowed drawdown of funds from our investment accounts held with Rathbones within 2-3 days notice. We also continuously realign spending priorities for short and medium terms as well as regularly adjusting spending forecasts.

• 3 Loss of identity of The Nautical Institute

We mitigate this risk by having a strong governance arrangements in place including carefully managed appointment of trustees; care with branding arrangements; alignment of projects with areas of interest of the NI; clear demonstration of NI ownership of project deliverables.

Future Plans

The Institute plans continuing the activities outlined above in the forthcoming years to achieve the key deliverables on the 2021-2026 Strategic Plan, which can be found on the NI website. Review of the Strategic Plan is due in 2025.

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THE NAUTICAL INSTITUTE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Co. No. 2570030

Structure, governance and management

Governing Document

The Nautical Institute is a charitable company limited by guarantee, incorporated on 20 December 1990 and registered as a charity on 8 April 1991. The Institute was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and Appointment of Trustees

The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as members of the Executive Board. Under the requirements of the Memorandum and Articles of Association, the members of the Executive Board are elected to serve for a period of three years after which they may be re-elected for a period of another three years. In exceptional circumstances, the appointments may be extended at the discretion of the Council, provided that their total terms of office on the Executive Board does not exceed twelve years.

Trustee Induction and Training

Most trustees are already familiar with the practical work of the Institute having been a member themselves.

Additionally, new trustees are invited and encouraged to attend a series of short training sessions to familiarise themselves with the charity and the context within which it operates. These are jointly led by the Chair of the Executive Board and the Chief Executive of the charity and cover:

• The obligations of Executive Board members.

• The main documents which set out the operational framework for the charity including the Memorandum and Articles.

• Resourcing and the current financial position as set out in the latest published accounts.

• Future plans and objectives.

Organisational Structure

The Nautical Institute has an Executive Board of up to 15 members who meet at least three times a year and are responsible for the strategic direction and policy of the charity. At present, the Board has 12 members from a variety of professional backgrounds relevant to the work of the charity.

A scheme of delegation is in place and day to day responsibility for the provision of the services rest with the Chief Executive along with Head of Areas. The Chief Executive is responsible for ensuring that the charity delivers the services specified and that key performance indicators are met. The Head of Areas have responsibility for the day to day operational management of their respective areas, individual supervision of the staff team and also ensuring that the team continue to develop their skills and working practices in line with good practice.

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THE NAUTICAL INSTITUTE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Co. No. 2570030

Remuneration

The key management personnel consists of the CEO, Director of Finance and Director of Research & Relationships.

The Institute operates a remuneration policy based on salary scales by grade with annual RPI and other changes determined by the Executive Board during the budget planning process. A delegated group of trustees appraise the Chief Executive at least annually and set remuneration for CEO and other key management personnel for the forthcoming year. A non-contributory pension investment of 9% of salary, is made to staff personal pension schemes.

While trustees are reimbursed travel expenses in connection with their roles as trustees, they do not receive any remuneration for their services as a Trustee. The Institute greatly values the contribution of its trustees and members in the work of the charity which ranges from their roles in the governance structure to representation input to the industry's decision making bodies and writing for the Seaways Journal and other publications. Due to the diversity of these voluntary contributions and the large number of members involved (some 140 in central governance roles), it is not feasible to assess the value in terms of time or money.

Fundraising

The Institute is aware of the requirements of the Fundraising Regulator. It does not use external funderaisers and no complaints have been recieved during the year. Trustees provide guidance and oversee the institute's fundraising practices, upholding the Charity Commission’s fundraising principles.

Auditors

The auditors, Buzzacott LLP are willing to continue in office and resolutions concerning the appointment of Auditors will be submitted to the annual general meeting.

Fixed assets

Changes in the company's fixed assets during the year are shown on the balance sheet.

Trustees

The Trustees of the Charitable Company are stated on page 1.

This report has been prepared in accordance with Statement of Recommended Practice- Accounting and Reporting by Charities and in accordance with special provisions of part 15 of the Companies Act 2006.

Approved by the trustees and signed on their behalf by:

Mr P B Hinchliffe Chair of Trustees

13 June 2024

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THE NAUTICAL INSTITUTE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 TRUSTEES' RESPONSIBILITIES

Statement of Trustees' Responsibilities

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing those financial statements, the trustees are required to:

• Select suitable accounting policies and then apply them consistently;

• 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 presume that the company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for prevention and detection of fraud and other irregularities.

Disclosure of information to the auditor

In accordance with company law, each of the Trustees confirm that:

• so far as they are aware, there is no relevant audit information of which the charity's auditors are unaware; and

• as the Trustees of the charity, they have taken all the steps that they ought to have taken in order to make

• • themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information.

____ ________

Mr P B Hinchliffe Chair of Trustees

Captain D M Telfer Treasurer

Date: 13 June 2024

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THE NAUTICAL INSTITUTE

Independent Auditor's Report to the members of The Nautical Institute

Opinion

We have audited the financial statements of The Nautical Institute (the ‘charitable company’) for the year ended 31 December 2023 which comprise the summary income and expenditure account, the statement of financial activities, the balance sheet, the statement of cashflows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:

• give a true and fair view of the state of the charitable company’s affairs as at 31 December 2023 and of its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report published in the June issue of the Institute's journal, Seaways, the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ report and financial statements. 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.

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

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THE NAUTICAL INSTITUTE

Independent Auditor's Report to the members of The Nautical Institute (continued)

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 trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial

• the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ 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 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; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, 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, 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 charitable company’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 charitable company 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; and

• we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011) and those that relate to data protection (General Data Protection Regulation).

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THE NAUTICAL INSTITUTE

Independent Auditor's Report to the members of The Nautical Institute (continued)

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual variances;

• tested journal entries to identify unusual transactions;

• tested the authorisation of expenditure and bank payments; and

• reviewed the implementation and design of controls and procedures in place around the grants payable system.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• Agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance; and

• enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date

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THE NAUTICAL INSTITUTE SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2023

Income Gain/(loss) on investments Gross income in reporting period Expenditure Net income before tax for the reporting period Tax Payable Net income for the financial year	2023 £ 5,353,193 129,811 5,483,004 4,277,142 ) ( 1,205,862 - 1,205,862	2022 £ 4,106,016 250,897 ) ( 3,855,119 3,490,611 ) ( 364,508 - 364,508

All income is unrestricted funds.

A detailed analysis of income and expenditure by source is provided in the Statement of Financial Activities and the notes to the financial statements.

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THE NAUTICAL INSTITUTE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2023

Note Income and endowments from: Donations and Legacies Charitable activities 2 Other trading activities 4 Investment income 5 Total Expenditure on: Raising funds 6 Charitable Activities 7 Total Net gain / (loss) on investments Net income Transfers between funds 18 Net movement in funds Reconciliation of funds: Total funds brought forward at 1st January 18 Total funds carried forward at 31st December 18

Unrestricted Designated Fund Fund £ £ £ £ Note 21 353,296 - 353,296 138,580 4,153,320 206 4,153,526 3,420,568 755,953 - 755,953 481,158 19,879 70,539 90,418 65,710 5,282,448 70,745 5,353,193 4,106,016 565,451 20,331 585,782 439,943 3,691,360 - 3,691,360 3,050,668 4,256,811 20,331 4,277,142 3,490,611 - 129,811 129,811 250,897 ) ( 1,025,637 180,225 1,205,862 364,508 1,000,000 ) ( 1,000,000 - - 25,637 1,180,225 1,205,862 364,508 1,147,039 2,873,715 4,020,754 3,656,246 1,172,676 4,053,940 5,226,616 4,020,754 Total Funds 2023 Total Funds 2022

All amounts relate to continuing activities.

All recognised gains and losses for the year are included in the above statements of financial activities.

Comparative information by fund class for the year ended 31 December 2022 is given in note 21.

All amounts above relate to unrestricted funds.

The notes on pages 17 to 25 form part of these financial statements.

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THE NAUTICAL INSTITUTE

BALANCE SHEET AS AT 31ST DECEMBER 2023

Company No. 2570030

Fixed assets	Note	£ 2023	£	£	£ 2022
Tangible assets	13		70,137		104,389
Investments	14		3,048,077		2,868,058
Total fixed assets			3,118,214		2,972,447
Current assets
Stocks	15	85,714		52,302
Debtors	16	1,059,219		404,025
Cash at bank and in hand		642,276		1,182,196
Short term deposits	14a	1,000,000		-	-
Total current assets		2,787,209		1,638,523
Liabilities:
Creditors:amounts falling due within one year	17	678,807 ) (		590,217 ) (
Net current assets			2,108,402		1,048,306
Total net assets or liabilities			5,226,616		4,020,753
The funds of the charity:
Unrestricted funds:
Designated funds	18		4,053,940		2,873,715
General funds	18		1,172,676		1,147,039
Total charity funds			5,226,616		4,020,754

These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Approved by the board of trustees on 13 June 2024 and signed on their behalf by: Fe: ________ lit Mr P B Hinchliffe Chair of Trustees

al)ie Captain D M Telfer Treasurer

---

The notes on pages 17 to 25 form part of these financial statements.

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THE NAUTICAL INSTITUTE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2023

Statement of cash flows Total 2023 £ Cash flows from operating activities: Net cash provided by (used in) operating activities 477,674 Cash flows from investing activities: Dividends, interest and rents from investments 90,418 Purchase of property, plant and equipment 57,804 ) ( Proceeds from sale of investments 252,393 Purchase of investments 556,463 ) ( Net cash (used in) investing activities 271,456 ) ( Cash flows from financing activities: Purchase of short term deposits 1,000,000 ) ( Net cash provided by (used in) financing activities 1,000,000 ) ( Change in cash and cash equivalents in the reporting period 793,782 ) ( Cash and cash equivalents at the beginning of the reporting period 1,573,383 Cash and cash equivalents at the end of the reporting period 779,601 Reconciliation of net income/(expenditure) to net cash flow from operating activities 1,205,862 Adjustments for: Depreciation charges 92,057 (Gains)/Losses on investments 129,811 ) ( Dividends, interest and rent from investments 90,418 ) ( (Increase) in stocks 33,412 ) ( (Increase) in debtors 655,194 ) ( Increase in creditors 88,590 Net cash provided by operating activities 477,674 Analysis of cash and cash equivalents Cash in hand 642,276 Investment capital reserve account 137,325 Total cash and cash equivalents 779,601 Net income/(expenditure) for the reporting period (as per the statement of financial activities)

Total 2022 £ 550,665 65,710 85,664 ) ( 439,874 694,360 ) ( 274,440 ) ( - - 276,225 1,297,158 1,573,383 364,508 86,868 250,897 65,710 ) ( 12,361 ) ( 197,605 ) ( 124,068 550,665 1,182,196 391,187 1,573,383

Adjustments for: Depreciation charges (Gains)/Losses on investments Dividends, interest and rent from investments (Increase) in stocks (Increase) in debtors Increase in creditors Net cash provided by operating activities Analysis of cash and cash equivalents Cash in hand Investment capital reserve account Total cash and cash equivalents Net income/(expenditure) for the reporting period (as per the statement of financial activities)

The notes on pages 17 to 25 form part of these financial statements.

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THE NAUTICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation of uncertainty in the preparation of the financial statements are laid out below.

a) Basis of accounting

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with the Companies Act 2006 and follow the recommendations of the 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 (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

b) Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements. Given the level of liquid assets held in relation to planned expenditure, the Trustees are of the opinion that the charity has sufficient reserves to be able to meet its liabilities as they fall due.

c) Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount can be measured reliably and it is probable that the income will be received. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it.

Income comprises donations and legacies, membership subscriptions, publications, training, certification and accreditation income as well as investment income.

Donations and legacies are included as voluntary income; all amounts are unrestricted in the current and prior year. Income is recognised when there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Membership subscriptions are recognised in the financial year to which the subscription relates and deferred if received in advance of that financial year.

Publications, training and accreditation income is recognised as the related goods or services are provided.

Investment income is recognsied on a receivable basis

Page 17

THE NAUTICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

1. Accounting policies (continued)

d) Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

• Expenditure on raising funds includes the direct costs and support costs associated with generating publication income, together with the fees paid to investment managers in connection with the management of the charity’s listed investments.

• Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include direct and support costs (including governance costs).

e) Allocation of support costs

50% of travelling and meeting expenses have been allocated to management and administration of the Institute, which reflects the proportion incurred in this activity.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

f) Corporation tax

The company has taken advantage of the tax exemption allowed due to its charitable status.

g) Tangible fixed assets

The charity’s policy is to capitalise asset purchases over £1,000. Depreciation is provided on tangible fixed assets so as to write down the cost over the expected useful life.

Furniture and office equipment is depreciated on the straight line basis at cost over its estimated useful life at the rate of 10% per annum. Computer equipment is depreciated at a rate of 33 1/3% per annum on cost.

h) Investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Realised and unrealised gains (or losses) are credited (or debited) to the statement of financial activities in the year in which they arise. The charity does not acquire put options, derivatives or other complex financial instruments.

Page 18

THE NAUTICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

1. Accounting policies (continued)

i) Stock

The stock held is the stock of books, both historical and current, and are valued at the lower of cost or net relisable value. The stock of books is reviewed periodically for the professional content and current relevance and a provision is calculated on this basis.

j) Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

k) Cash at bank and short term deposits

Cash at bank represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Cash placed on term deposit with a maturity of greater than three months but not more than twelve months is disclosed as a short term deposit.

l) Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it would pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

m) Funds

The charity has various types of funds for which it is responsible and which require separate disclosure. These are as follows:

Unrestricted funds

Unrestricted funds arise from all the accumulated surpluses and deficits in the provision of general charitable activities.

Designated funds

Designated funds are funds set aside out of general funds by the Trustees and designated for a particular purpose. See note 18 for details of specific designated funds.

n) Operating leases

Rental payments under operating leases are charged as expenditure as incurred over the life of the lease.

n) Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the Trustees and management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

• estimating the useful economic life of tangible fixed assets for the purposes of determining the annual depreciation charge;

• determining the basis for allocating support costs across expenditure categories;

• the estimation of future income and expenditure for the purposes of assessing going concern.

Page 19

THE NAUTICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

2 Charitable activities Seminars/Conferences & Journals 3 Entrance fees, transfer fees and subscriptions Training and courses Accreditation and Certification 3 Seminars/Conferences & Journals Income Conferences and seminars Seaways income (subscribers & Affiliates) Seaways advertising income Expenditure Conferences/seminars Seaways publications Mars Seaways advertising cost Surplus/(deficit) on Seminars/Conferences & Journals 4 Other trading activities Sales Costs of sales Opening stocks Purchases Less: closing stocks Costs of sales Surplus on other trading activities 5 Investments income Bank interest Dividends

General Designated Total Total Fund Fund 2023 2022 £ £ £ £ 195,841 - 195,841 337,962 750,862 - 750,862 766,073 380,318 206 380,524 362,051 2,826,299 - 2,826,299 1,954,482 4,153,320 206 4,153,526 3,420,568 Seminar/ Seaways Conferences Journals 2023 2022 £ £ £ £ 69,079 - 69,079 178,701 - 109,467 109,467 124,865 - 17,295 17,295 34,396 69,079 126,762 195,841 337,962 83,991 - 83,991 142,685 - 173,325 173,325 169,720 - 7,000 7,000 6,000 - 3,191 3,191 7,421 83,991 183,516 267,507 325,826 14,912 ) ( 56,754 ) ( 71,666 ) ( 12,136 Books Services 2023 2022 751,723 4,230 755,953 481,158 49,590 2,712 52,302 39,941 520,910 2,947 523,857 371,407 570,500 5,659 576,159 411,348 82,948 ) ( 2,766 ) ( 85,714 ) ( 52,302 ) ( 487,552 2,893 490,445 359,046 264,172 1,337 265,508 122,112 General Designated Fund Fund 2023 2022 £ £ £ £ 19,879 10,455 30,334 11,058 - 60,084 60,084 54,652 19,879 70,539 90,418 65,710

Page 20

THE NAUTICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Note 6 Raising funds Cost of generating funds 4 Investment management fees Publicity 7 Charitable activities Cost of activities in furtherance of the Institute's objectives 3 Support costs 8 Administration & Governance costs 9 Projects Training & Courses Membership Accreditation and Certification 8 Support costs Branch subventions & chartership costs Staff costs 11 Travelling and meetings 9 Administration & Governance costs Postage and telephone Printing and stationery Computer expenses Auditors fees Credit Card & Bank Charges Rent, rates and service charges Insurance Insurance - Members Benefit Office equipment rental General expenses Travelling, meetings and AGM expenses Legal & Professional fees Training Costs Staff recruitment costs Depreciation Office move 10 Net movement in funds for the year This is stated after charging: Depreciation of fixed assets Amounts paid in respect of operating leases Auditors remuneration (audit services)	General Fund £ 490,445 - 75,006 565,451 267,507 811,687 582,494 425,999 193,566 196,031 1,214,076 3,691,360	Designated Total Fund 2023 £ £ - 490,445 20,331 20,331 - 75,006 20,331 585,782 - 267,507 - 811,687 - 582,494 - 425,999 - 193,566 - 196,031 - 1,214,076 - 3,691,360 2023 £ 17,863 726,220 67,604 811,687 2023 £ 59,876 8,123 68,323 19,500 82,525 80,995 9,101 8,428 2,677 45,341 67,604 29,540 2,954 5,450 92,057 - 582,494 2023 £ 92,057 84,170 19,500	Total 2022 £ 359,046 17,539 63,358 439,943 325,826 652,014 495,228 389,368 123,540 145,480 919,213 3,050,668 2022 £ 21,808 612,809 17,397 652,014 2022 £ 58,287 5,551 58,082 5,900 50,541 29,573 9,238 7,600 5,765 22,914 17,397 40,557 786 64,004 86,868 32,165 495,228 2022 £ 86,868 - 5,900

Page 21

THE NAUTICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

11 Staff costs Salaries & wages Social security costs Pension Total staff cost including benefits Less: allocated to cost centres Staff costs included within overhead cost. No. of employees earning £60,000 to £70,000 No. of employees earning £70,001 to £80,000 No. of employees earning £80,001 to £90,000 No. of employees earning £90,001 to £100,000 No. of employees earning £100,000 + Average number of employees	2023 £ 1,675,028 181,833 135,006 1,991,867 1,265,647 ) ( 726,220 4 1 1 1 1 37	2022 £ 1,441,380 161,787 108,523 1,711,690 1,098,881 ) ( 612,809 3 - - 2 1 34

The chairman and trustees did not receive any remuneration during the year.

The key management personnel consists of the CEO, Director of Finance and Director of Research & Relationships; their total remuneration was £384,807 for the year ended 31 December 2023 (2022: £376,892). Remuneration of key management personnel is set by the remunerations committee.

• 12 Taxation

The charitable company is exempt from corporation tax on its charitable activities.

13 Tangible fixed assets Cost At 1st January 2023 Additions Disposals At 31st December 2023 Accumulated depreciation At 1st January 2023 Charge for the year Disposals At 31st December 2023 Net book values: As at 31st December 2023 As at 31st December 2022 14 Investments Market value at 1 January Acquisition at cost Sales proceeds at market value Surplus / Loss in the year Market value at 31 December Other Holdings Cash Market value at 31 December Market value at 1 January Historic cost at 31 December	Office furniture & Equipment Computers £ £ 79,769 892,801 - 57,804 - - 79,769 950,605 70,710 797,470 6,012 86,045 - - 76,722 883,515 3,047 67,090 9,059 95,331 2023 £ 2,476,871 556,463 252,393 ) ( 129,811 2,910,752 137,325 3,048,077 2,868,058 2,843,117	Total £ 972,570 57,804 - 1,030,374 868,180 92,057 - 960,237 70,137 104,390 2022 £ 2,473,282 694,360 439,874 ) ( 250,897 ) ( 2,476,871 391,187 2,868,058 2,574,588 2,556,052

Page 22

THE NAUTICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

14 Investments (continued)

The following investments represent more than 5% of the total portfolio value at 31 December 2023:

14a	SPDR Series Trust Treasury 4.25% Stock 2032 Short term deposits At 1 January Purchase of short term deposits	Balance £ 341,373 167,644 2023 £ - 1,000,000		% holding 11.7% 5.8% 2022 £ - -
	At 31 December	1,000,000		-
15	Stocks Books Member services	2023 £ 82,948 2,766		2022 £ 49,590 2,712
		85,714		52,302
16	Debtors Trade debtors Prepayments Other debtors VAT	424,018 159,923 428,605 46,673		199,668 85,446 102,556 16,355
		1,059,219		404,025
17	Liabilities: Creditors: Amounts falling due within one year: Trade creditors Accruals PAYE & other creditors Deferred income	276,496 157,194 69,033 176,084		199,630 108,031 76,290 206,266
		678,807		590,217
	£ Balance brought forward at 1 January 2023 206,266 Release of deferred inome in year 68,333 ) ( New deferrals 38,151 Deferred income includes project and membership income recived in advance which is being released to income in the period the income relates to. It also includes a premium from surrendering old office lease which is being recognised over the 5 years term of the current office lease.
	Balnace carried forward at 31 December 2023		176,084
18	Funds Balance New 01.01.2023 Designated Designated funds £ £ Capital Reserve Fund 2,868,059 50,208 Education fund 5,656 206	Utilised/ Realised £ 129,811 -	Transferred £ 1,000,000 -	Balance 31.12.2023 £ 4,048,078 5,862
	2,873,715 50,414	129,811	1,000,000	4,053,940

Page 23

THE NAUTICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

18 Funds (continued)

The Capital Reserve Fund has been set up to create a Contingency Reserve and a Projects Reserve. The Contingency Reserve is to ensure that the Institute's services are not compromised in the short term. The target level of Contingency Reserve is calculated based on 33% of annual operating budget. The Projects Reserve is to enable the Institute to fund specific projects with the approval of the Executive Board of Trustees. The target level of Projects Reserve is calculated based on 50% of the Contingency Reserve target. The level of Capital Reserve Fund is reviewed on a regular basis. During the year a transfer of £1m (2022: £500,000) has been made from the General Fund to the Capital Reserve Fund.

The Education Fund is generated from authors chosing to donate royalties due to them from book sales. The fund is used to provide financial support to junior officers in the maritime sector towards advancing their career. The award of financial support from the Education Fund is made after applications are considered by the nominations committee.

General Fund Brought forward Transfer in year Surplus for year	Balance Utilised/ Balance 01.01.2023 Unrestricted Realised Transferred 31.12.2023 1,147,039 - - - 1,147,039 - - - 1,000,000 ) ( 1,000,000 ) ( - 1,025,637 - - 1,025,637 1,147,039 1,025,637 - 1,000,000 ) ( 1,172,676

19 Related Party Transactions

No Trustee received any remuneration for services as a Trustee. The amount of £12,523 (2022: £2,944) was reimbursed to Trustees to cover miscellaneous travel expenses in connection with their roles as Trustees.

During the year the charity paid net expenses of £86,793 (2022: £55,986) on behalf of the Nautical Institute Foundation, a charity with trustees in common with the the Nautical Institute. The balance due from the Nautical Institute Foundation at 31 December 2023 was £158,992 (2022: £72,199). There are no concerns in respect of recoverabity of this balance. The Foundation’s role is to be supportive of Nautical Institute programmes and ethos, but it plays a unique role in being able to support educational needs for the wider maritime community, not just NI members. It aims to raise funds from industry participants and other maritime NGOs to develop and deliver its programmes and has no recourse to permanent funding from the NI itself.

Trustees and Council members use the Institute's services on the same terms as other members. Because of the nature of the Institute's trades it is not practical to quantify the total of transactions with these members during the year. However, only minor balances were owed to and from these members as at 31st December 2023 and any fees paid to these members are shown separately in the Revenue Account. Trustees and Council members are required to be full voting members of the Institute.

Due to the nature of the Institute's trade, a number of the Trustees and Council are also directors/trustees/employees of entities with which the Institute trades, and due to the nature of the trade, it would not be practical to quantify the total of transactions in the period.

Page 24

THE NAUTICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

20 Lease commitments

At 31 December 2023, the Institute had the following future lease payments under non-cancellable operating leases:

Land and buildings Not later than one year Later than one year and not later than five years Comparative Statement of Financial Activities Income and endowments from: Donations and Legacies Charitable activities Other trading activities Investment income Total Expenditure on: Raising funds Charitable Activities Total Net loss on investments Net income Transfers between funds Net movement in funds Reconciliation of funds: Total funds brought forward at 1st January Total funds carried forward at 31st December

2023 2022 £ £ 84,170 84,170 168,340 252,510 Unrestricted Designated Total Funds Fund Fund £ £ £ 138,580 - 138,580 3,420,568 - 3,420,568 481,158 - 481,158 3,804 61,906 65,710 4,044,110 61,906 4,106,016 422,404 17,539 439,943 3,048,801 1,867 3,050,668 3,471,205 19,406 3,490,611 - 250,897 ) ( 250,897 ) ( 572,905 208,397 ) ( 364,508 501,510 ) ( 501,510 - 71,395 293,113 364,508 1,075,644 2,580,602 3,656,246 1,147,039 2,873,715 4,020,754

21 Comparative Statement of Financial Activities

Page 25