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 *J*z 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 IlGain/(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. Page 13 ## **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. Page 14 ## **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. Page 15 ## **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. Page 16 ## **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