## The Association of Sail Training Organisations **Limited by Guarantee** ## **Trustees Report** ## **and Financial Statements** for the year ended 31 October 2020 **Registered Charity Number 1083059 Registered Company Number 04084476** ## **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **CONTENTS** ||**Page**| |---|---| |**Charity information**|**1**| |**Trustees’ report**|**3**| |**Independent auditors’ report**|**8**| |**Statement of financial activities**|**10**| |**Balance sheet**|**11**| |**Accounting policies**|**12**| |**Notes to the financial statements**|**15**| **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **CHARITY INFORMATION** |**Patron**|HRH The Countess of Wessex GCVO| |---|---| |**President**|Rear Admiral J S Lang| |**Vice President for life**|John H Hamilton OBE| |**Trustees**|J E Stevens (Chairman)| ||C B Burton| ||A J Butcher MBE| ||T J James| ||H R Maywood| ||G R Mills| ||N V Northmore (appointed 17th April 2020)| ||P J Russell| ||D G Snelson (appointed 17th April 2020)| ||M Todd| |**Registered office**|Unit 10, North Meadow| ||Royal Clarence Yard| ||Gosport| ||Hampshire| ||PO12 1BP| |**Registered charity number**|1083059| |**Registered company number**|04084476| |**Company secretary**|L C Gross Mudie| |**Auditors**|Blue Spire Limited| ||Cawley Priory| ||South Pallant| ||Chichester| ||West Sussex| ||PO19 1SY| |**Bankers**|The Co-operative Bank| |**Investment managers**|Rathbones Investment Management Ltd| ||Port of Liverpool Building| ||Pier Head| ||Liverpool| ||L3 1NW| |**Solicitors**|Charles Russell Speechlys LLP| ||5 Fleet Place| ||London| ||EC4M 7RD| **Page 1** **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **CHARITY INFORMATION** |**Full members**|Adventures Offshore| |---|---| ||Adventure under Sail| ||Cat Zero| ||Challenge Wales| ||Cirdan Sailing Trust| ||Dauntsey’s School| ||Discovery Sailing Project| ||Ellen MacArthur Cancer Trust| ||Excelsior Trust| ||Gordonstoun School| ||Island Trust| ||Jubilee Sailing Trust| ||Leila Sailing Trust (Membership ceased 10thJan 2020)| ||Marine Society and Sea Cadets| ||Morning Star Trust| ||Ocean Youth Trust North| ||Ocean Youth Trust Scotland| ||Ocean Youth Trust South| ||Pioneer Sailing Trust| ||Rona Sailing Project| ||Sea Change Sailing Trust| ||Swan Trust| ||Tall Ships Youth Trust| ||Trinity Sailing Foundation (Membership ceased 10thJan 2020)| ||Westward Quest (Membership ceased 10thJan 2020)| |**Associate members**|Boleh Trust| ||Combined Cadet Force| ||East Coast Sail Trust| ||Gwennili Trust| ||Maybe Sailing| ||Morvargh Sailing Project (Associate members 16thOct 2020)| ||Portsmouth Sail Training Trust| ||Sailing Tectona (Associate members 10thJan 2020)| ||Sea Sanctuary| ||UKSA| |**Honorary members**|Sail Training International| ||RYA Sailability| **Page 2** **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **TRUSTEES’ REPORT** The trustees have pleasure in presenting their annual report, incorporating the directors’ report, for the purposes of the Charities Act 2011 and Sections 415 to 419 of the Companies Act 2006, together with the accounts for the year ended 31 October 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** The Association of Sail Training Organisations (ASTO) is a charity limited by guarantee (registered company number: 04084476), incorporated on 27 September 2000 under a Memorandum and Articles of Association (as amended by special resolution 23 April 2009) and registered as a charity (registered charity number: 1083059) on 27 October 2000. The governing document states that the Board of Directors shall consist of not less than 5 and not more than 15 persons. The directors are appointed either by the members at the AGM, or by the board in which case the director has to retire at the next AGM and may be reappointed by the members. One-third of the number of directors must retire from office (by time rotation) at each AGM but may be reappointed. The chairman is appointed by the members from the board for a period of up to 3 years and upon expiry of such a period may be reappointed. Trustees, who are also the directors for the purpose of company law, who have served during the year, and since the year-end, are listed on the charity information page. None of the trustees has any beneficial interest in the company. The board manages the charity on behalf of its members by holding not less than three board meetings each year in addition to the Annual General Meeting. The AGM usually takes place on the same day as the annual conference in January, although this may change for 2021. Other meetings are held as required. The rules and criteria for the different types of membership are contained in ASTO’s ‘Regulations and Guidelines’ which have been drawn up under the provision of Article 67. Sail Training organisations seeking membership are closely vetted to ensure that they meet the criteria for membership. Members of the company guarantee to contribute £1 each in the event of a winding up. A list of members is shown on the legal and administrative page. ## **Trustee induction and training** Most new trustees are already familiar with ASTO’s role and activities. New trustees are briefed at the ASTO office by the Chairman and General Manager. The briefing covers the activities of the charity, trustees’ obligations under charity and company law, the Charity Commission’s guidance on Public Benefit, content of the Memorandum and Articles of Association, the committee and decision making process and the business plan and budget. New trustees are given a welcome pack with copies of these documents, the current Annual Report and Accounts, copies of the minutes of previous board meetings and publications including the Charity Commission’s “The Essential Trustee” and the Charity Governance Code. Following the induction process, new trustees sign a declaration confirming that they are eligible to act as a trustee and where necessary ASTO conducts a criminal record check. ## **Arragements for setting pay** The pay and remuneration of the charity’s key management personnel is set by the trustees, with rates and increases applied by reference to pay scales in similar organisations. ## **Assessment and Management of Risk** The trustees regularly review the major risks affecting or which might affect ASTO. We believe that these risks are mitigated by the prudent investment of ASTO’s assets, the preparation and production of appropriate and audited accounts, the maintenance of suitable insurance, the obtaining of any necessary legal advice or other expert advice, and the holding of regular board and general meetings as prescribed by law. A risk register exists which identifies the major risks to which the charity is exposed and details the systems and procedures to manage these risks. The trustees continue to monitor the standards of sea training safety of ASTO members by means of a Compliance Declaration which members have to complete each year, confirming that the vessels used comply with the relevant MCA Code of Practice and that their certification is in date. ASTO’s General Manager carries out review visits to members on a routine basis to ensure that they continue to comply with the criteria for membership. **Page 3** **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **TRUSTEES’ REPORT** ## **OBJECTIVES AND ACTIVITIES** The Objects for public benefit are: - to promote the provision of opportunities for sea training under sail or power (“Sail Training”). - to provide instruction to young persons and to adults with special needs, in the principles of responsibility, resourcefulness, loyalty and team endeavour, and - to advance education in the art of seamanship. In furtherance of these objects ASTO has various powers, set out in the Memorandum of Association, amongst which are the following: - to support and encourage Sail Training and adventure afloat generally and particularly by those otherwise unable to afford to do so by the provision of bursaries. - to create public awareness of the opportunities available for Sail Training and adventure afloat by means of lectures, meetings, demonstrations, exhibitions, pamphlets, books and such other media as may be appropriate. - to represent the interests and negotiate on behalf of bodies providing opportunities for Sail Training with Government departments and other appropriate bodies in all matters relating to Sail Training generally and particularly in relation to safety, classification of vessels, certification and proficiency of personnel. - to act as a forum for all Sail Training organisations in the UK with similar objectives. ## **Grant making policy** ASTO makes bursary grants to member organisations to benefit young people up to the age of 25, and adults with disabilities (‘Hammond Innes bursary’). The Board of Directors considers the forecast income return in conjunction with the business plan for the following year in deciding the size of the bursary fund. Members are allocated a proportion of the total available fund on an equitable numerical basis, dependent on the number of young people or vulnerable adults they have taken to sea. The detailed distribution of grants to the final beneficiary is managed by the members. The grant allocations may also be used to defray the cost of course fees for instructors or leaders of any age to obtain necessary qualifications. In 2020, member organisations were unable to sail and had a significantly reduced income due to Covid-19 restrictions. As a result ASTO members faced an existential crisis. ASTO trustees therefore decided, as an exceptional measure, to designate an additional emergency fund to support full member organisations. This fund was named the “Lifeboat Fund.” Organisations could apply for up to 4 times their Hammond Innes allocation, and a panel of trustees assessed the applications, with final ratification by the full board. One tranche of monies was paid out in April 2020 in support. A second Lifeboat grant on a similar basis was made after the year end which will be reflected in next year’s accounts. ## **Volunteers** ASTO continues to rely on volunteers at board level to direct the affairs of the organisation. ASTO are greatly indebted to all of our volunteers for their time commitment during 2020 which we estimate is the equivalent of one full time employee. ## **The Public Benefit resulting from Sail Training** There is anecdotal evidence about the benefits that accrue from a Sail Training voyage, which is validated by academic research: - an international study commissioned with the University of Edinburgh to assess the value of Sail Training found measurable improvements in social confidence and the ability to work with others, and that these benefits were sustained over time after the voyage had ended - a study carried out by the University of Sydney found that Sail Training succeeds in fostering networks and alliances which are the basis of the development of social capital. It also found that it achieves this in a shorter, more concentrated programme than other similar schemes - an international study into Sail Training conducted by the University of Otago in New Zealand reported that, “Sharing the pleasures, hardships and camaraderie that develop out of life at sea has a profound impact on strengthening character, fortitude and confidence. The importance of mutual respect, perseverance, responsibility and teamwork towards others and nature present a great sense of existence, self discovery and accomplishment.” **Page 4** **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **TRUSTEES’ REPORT** - ASTO’s own Theory of Change and measurement framework shows that Sail Training has a positive effect on people from all backgrounds. Surveys supporting the Theory of Change have found that more than 90% of surveyed trainees felt they learnt a new skill, their team worked well together, they had to do something important, they learnt to stick to the ships routine and they did things even though they were difficult. These activites resulted in self-reported increases in their self-confidence, resilience, time-management, problem solving and locus of control (self-efficacy). At least some of these outcomes will be maintained over time, leading to young people with higher aspirations and a can-do attitude. ASTO’s full Theory of Change and survey results are on the website. ## **ACHIEVEMENTS AND PERFORMANCE** All of our charitable activities are undertaken in furtherance of our charitable objects and for public benefit according to the guidance set out in the Charity Commission’s general guidance on public benefit. The main strategies and activities for achieving these objects in 2020 are listed below. Due to the widespread restrictions to stop the spread of Covid 19, many activities were not possible in 2020. Member organisations were unable to provide residential Sail Training, with only a handful of members being able to provide day sails. Only the following of ASTO’s usual activities were therefore possible: - the awarding of £300,000 in bursaries (‘Hammond Innes bursary’) to assist young people up to the age of 25 and adults with disabilities with their berth fees. The allocations may also be used to defray the cost of course fees for instructors or leaders of any age to obtain necessary qualifications. The bursary beneficiaries included a wide cross section of young people from all cultural, religious and social backgrounds, including many who are socially, physically or mentally disadvantaged. - the awarding of a further £225,000 in Hammond Innes bursaries. This extra amount was awarded once it was clear the sailing season would be interrupted due to Covid-19. The restricions on this extra bursary were lifted, enabling recipient organisations to use the funds in whichever way they felt would best support the organisation. - the setting up of an emergency fund to support and ensure the future availability of Sail Training opportunities for young people, following on from the crisis caused by the Coronavirus pandemic. £ 1.6 Million from ASTO’s reserves was allocated for this fund, approximately half to be granted in April 2020 with the other half later in the year. Only full ASTO members were able to apply for the fund, which paid out £628,825 during this financial year. - the organisation of the annual UK Sail Training Conference in Southampton in January to act as a forum for all UK stakeholders. The 2020 conference attracted over 130 Sail Trainers from all parts of the UK. The principal speaker was Sarah Treseder from the RYA. Topics of discussion included financial risk management, sea staff wellbeing, equality and diversity, and discussions on what makes a good Sail Training voyage. - the administration of the Trinity House Career Development Bursary Scheme to defray the costs of members’ staff and volunteers gaining the necessary qualifications to progress their Sail Training careers. In 2020, bursaries were awarded to 17 candidates. - The creating of a new position within ASTO, to manage social media and marketing. A recent graduate was recruited and started with ASTO in August. The main responsibility will be to raise awareness of Sail Training through all types of media including social media and magazine articles. - the organisation of the much reduced Small Ships’ Race in Cowes in October, with only 4 boats being able to take part. The race was organised at minimal cost to ASTO, with generous support from the Marine Society and Sea Cadets who provided their power vessel Jack Petchey as the media/committee vessel. A virtual online race was organised at the same time, to enable people to take part from at home. ASTO would like to thank Sailonline.org for their generous assistance with this for which there was no charge. - the selection of 3 young people to take part in the International Exchange. Due to the pandemic it was not possible to organise this exchange in 2020, however the intention is for these candidates to travel in 2021. - • A members meeting in autumn that is now an annual event. The meeting is open to CEOs and operations managers and is an opportunity for a confidential discussion on Sail Training and any matters of concern. In 2020, the main topic of discussion was Covid-19 and how voyages could be run in a Covid-secure way. The 2020 meeting was held online, 23 of our member organisations attended. - acting as a Disclosure and Barring Service (DBS) umbrella body to administer applications for vetting of members’ potential staff and volunteers. In 2020 ASTO dealt with 177 applications for criminal record checks, representing a saving of about £1,062 for members. **Page 5** **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **TRUSTEES’ REPORT** - the provision of online courses to members. These include courses on safeguarding, child protection, dealing with difficult behaviour and food hygiene and can be taken for very little cost. ASTO also offer the RYA PPR course at a reduced cost. 54 online courses and 28 PPR courses were taken up by members in the year. - continuing liaison with the Maritime and Coastguard Agency (MCA) and the Royal Yachting Association (RYA). ASTO Chairman James Stevens is Chairman of the RYA Yachtmaster Qualification Panel; ASTO President John Lang and OYT South CEO Mark Todd are also panel members. Advice from the RYA was particularly welcome this year as they interpreted the government guidelines that allowed some sailing, despite the Covid restrictions. - continued liaison with the MCA regarding the awards which recognise the professionalism within Sail Training. The two awards are ‘Best Potential Sail Training Skipper’: to reward the mate or other staff member who shows the best potential, not just for command ability and seamanship but also for the capability of fulfilling the youth development aims of Sail Training; and ‘Sail Training Vessel of the Year’ to reward an operator for fulfilling both the Sail Training aspirations of ASTO and the seamanship and safety requirements of the MCA. The next awards will be presented at the conference in January 2020. - providing UK national support for Sail Training International (STI). ASTO is a founding member of STI and the ASTO Chairman is the UK Country Representative on the STI Council. ASTO trustee, George Mills, is STI’s Chief Vessel Safety Inspector and the General Manager Lucy Grodie is on the executive committee of the STI Small Ships Forum. - providing support to the UK representative for the STI Youth committee. ## **FINANCIAL REVIEW** Total incoming resources for the year ended 31 October 2020 were £295,350 (year to 31 October 2019: £376,012) and the charity’s principal funding sources continued to be investment income, donations and grants. Total resources expended were £1,327,627 (2019: £556,730) with the majority of expenditure being in the form of grants, race costs and promotional costs in furtherance of the charity’s objects. This includes the exceptional emergency grant of £628,825 (Lifeboat Fund) that was set up to support full members through the crisis caused by Covid-19. This gave rise to a deficit for the year of £1,032,277 (2019 deficit: £180,718) before a loss on investments of £704,739 (2019 gain: £563,114). ## **Reserves policy** As at 31 October 2020, the charity’s total funds amounted to £8,824,020 of which £42,324 is restricted for purposes as set out in notes 17 and 18. The level of reserves available for the charity’s use (i.e. in unrestricted funds and not represented by fixed assets) was £8,735,542 (2019: £10,490,528) inclusive of investments totalling £8,700,006 (2019: £10,490,602). The Association is heavily dependent on the income generated by its investments and therefore the trustees consider it is necessary to hold all of these investments within the charity in order to be able to generate income to fund the Association’s activities. The trustees believe this level of investment is necessary to generate income to fund the Association’s activities for the indefinite future. ## **Investment policy** The investment strategy of the trustees is a prudent one with the aim to maximise income whilst maintaining the value of investments in real terms. Each year the trustees withdraw from the portfolio an amount approximately equal to investment income received for the continued provision of the Hammond Innes bursaries and to cover some administrative expenses. In discussion with the investment managers the trustees have approved a risk profile for the management of the investments which is suitable for a portfolio invested for the long term and which is in line with that adopted by other charities with similar investment objectives. During the year under review the charity’s investments generated £227,364. The portfolio shrank in value from £10,490,602 to £8,700,006 in the year to 31 October 2020. ## **FUNDRAISING STANDARDS INFORMATION** The charity does not solicit funds from the general public nor does it engage any third parties to act on its behalf in raising funds for the charity. As such the charity is not bound by any scheme for regulating fundraising. **Page 6** THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 TRUSTEES, REPORT PLANS FOR THE FUTURE Strategies and activities for achieving the objects ol the charity in 2021 include.. aising with government agencies and other providers of outdoor learning to litt the restrictions that have made Sail Training almost impossible in 2020. awarding the second part ol the Liletx)at grant lo support full members through the Covid-19 crisis. further promoting the benefits ol Sail Training through social media campaigns and pub5icity. UFxYaling the website lo make rt more lun and relevant. running the delayed Mayflower Small Ships Ra￿, which was unable to be held in 2020. further encouraging members lo measure their outcomes and improve good practice. the annual Cowes Small Ships, Race in octo1￿r which is a lavourite on Ihe Sal Training calendar and is growing in recognition year on year. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Iruslees are responsible for preparing the Trustees, Report and the financial statements in accordance wlh awlicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practicel. The law applicable to charities in England & Wales requires the trustees lo prepar8 financial statements lor each financial year which give a true and lair view of the stale ol allairs ol the charty and ol the incoming resources and application ol resources of the charity for that period. In preparing these financial stalemenls, the Iruslees are required lo.. select suitable accounting policies and then apply them consislerrtly., observe the methods and principles in the Charities SORP 2019 IFRS 1021., make judgements and estimates that are reasonable and prudent- state whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial statements., and prepare the financial statements on the going concern basis unless r( is inappropriate lo presume that the harily will continue in operation. The trustees are responsible lor keeping proper accounting r￿ordS that disclose wrth reasonable accuracy al any lime the financial F()Sition ol the charity and enable them lo ensure that the financial statements comply with the Charities Act 2011. the Charity (Accounts and Rewrtsl Regulations 2008 and the provisions ol the trust deed. They are also responsible for safeguarding the assets ol the charity and hence for taking reasonable steps lor the prevention and detection ol fraud and other irregularities. The trustees are responsible for the maintenance and integrity ol the charity and financial information included on the charity's website. Legislation in the Unbted Kingdom governing the preparatKJn and dissemination of finanaal statements may differ from legislation in other jurtsdiclions. APPO1￿ME￿￿ OF AUD￿oRs The charity's auditors. Blue Spire Limited, have expressed their willingness to sland tor reappointment and a resolution proposing their reappointment ¥MII pul forward al the Annual General Meeting ol the charty. SMALL COMPANIES PROVISIONS This report has been prgpared in accordance wth the small companies regime under the Companies Act 2006. Approved by the trustees and signed on their behaw. J E Stevens Trustee ale.. Page 7 **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **INDEPENDENT AUDITORS’ REPORT** ## **Independent auditors’ report to the members of The Association of Sail Training Organisations** ## **Opinion** We have audited the financial statements of The Association of Sail Training Organisations (the ‘charitable company’) for the year ended 31 October 2020 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 October 2020, and of its incoming resources and application of resources, including 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** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report has been prepared in accordance with applicable legal requirements. **Page 8** THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OGTOBER 202Q INDEPENDENT AUDITORS, REPORT Malters on which we are requlred to report by exception In the light of our knowledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not idenlrfied material misslalements in the directors, report. We have nothing lo report in respect of the following matters in relation lo which the Companies Acl 2006 requires us lo report to you il, in our opinion.. adequale accounting records have not been kept, or returns adequate for our audrt have not been received from branches not visited by us., or the financial slalemenls are not in agreement with the accounting records and returns., or certain disclosures of directors, Temuneration specrfied by law are not made., or we have not received all the information and explanations we require lor our audit., or the trustees were not enlilled to prepare the financial stslements in accordan￿ with the small ¢ompanies' regime and take advantage ofthe small companies, exemptions in preparing the directors, report andfrom the requirement lo prepare a strategic report. R95ponslblllties of trustees As explained more lully in the slalemenl of Iruslees, responsibilities. the trustaès (who are also the dirèctors of the charrtable company lor the purposes of company lawl are resFxinsible lor the preparation of Ihe financial statements and lor being satisfied that they give a true and fair view, and lor such internal control as the trustees determine is necessary lo enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial ststemenls, the Itustees are responsible for assessing the charitable company's ability lo continue as a going concern, disclosing, as applicable, mallers related to going concern and using the going concern basis ol accounting unless the trustees either intend lo liquidate the charitable cofflpany or to cease operations, or have no realistic alternative but lo do so. AuditoV8 re8ponsibilities for the audlt of the flnancial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, whether due lo fraud or error. and lo Issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaranlee that an audit conducted in accordance with ISAS IUKI will always delecl a material misstatement when il exists. Misslatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably bo expected lo influence the econornic decisions ol users taken on the basis ol these financial slalements. A further description ol our responsibilities for the audit ol the financial statements is llxaled on the Financial ReFX)rting Council's website al.. www.frc.org.ukJaudrtorsresponsibilities. This description foms 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 ol the Companies Act 2006. Our audit work has been undertaken so that we might slate lo the charitable company's members those mallers we are required to stste lo them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assurne resFKinsibility lo anyone other than the charitable company and the charitable company's members as a body, for our audf( work, for this report, or for the opinions we have fomied. ca￿eY Priory South Pallant Chichester Wesl Sussex P0191SY Geoffrey Frost, (Honsl FCA, Senior Slalulory Auditor For and on behalf ofBlue Spire Limited, Stalulory Auditors Dale Page 9 ## **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)** |**Note**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
**1**
Investments
**2**
Charitable activities
**3**
Other - Furlough grants (unrestricted)
**Total**
**EXPENDITURE ON:**
Raising funds - Investment management costs
**4**
Charitable activities
**5**
**Total**
Net gains/(losses) on investment assets
**13**
**Net Income/(expenditure)**
**Transfers between funds**
**17**
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**17**
**Total funds carried forward**
**17**|**Unrestricted**
**Funds**
**£**
19,995
227,364
4,319
6,732
258,410
43,222
1,265,073
1,308,295
(704,739)
(1,754,624)
-
(1,754,624)
10,540,320
8,785,696|**Restricted**
**Funds**
**£**
37,000
-
(60)
-
36,940
-
19,332
19,332
-
17,608
-
17,608
24,716
42,324|**2020**
**Total**
**Funds**
**£**
56,995
227,364
4,259
6,732
295,350
43,222
1,284,405
1,327,627
(704,739)
(1,737,016)
-
(1,737,016)
10,565,036
8,828,020|**2019**
**Total**
**Funds**
**£**
68,803
299,932
7,277
-| |---|---|---|---|---| |||||376,012| |||||49,608
507,122| |||||556,730| |||||563,114
382,396
-| |||||382,396
10,182,640| |||||10,565,036| The charity has no recognised gains or losses other than those dealt with in the statement of financial activities. All of the above results are derived from continuing activities. **Page 10** THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 BALANCE SHEET AS AT 31 OCTOBER 2020 2020 2019 Note FIXED ASSETS Tangible assets Investments 12 13 50.154 8.700.0( 49,792 10.4go.602 ,750.160 10.540.394 CURRENT ASSETS Debtor5 Cash al hand anLI in bank Total current asset8 14 1.932 80.070 82,002 243 67,072 67.315 CURRENT UABIUTIES Creditors. amounts ralling due wlhin one year 15 4.142 42,673 Net curront as8etsllllabllltfi881 77.860 24,642 Net a8SOt8IIIOablllthsl 8.828,020 1D,565,036 THE FUNDS OF THE CHARITY R8strlctod lunds 17 42,324 24.716 Designated Funds Fair Value Reserve General Funds Unr•strl¢ted funds $0,IS3 830.484 7,905,059 8,785,69S 49.792 1,793,147 8.697.381 10.540,320 17 Totsl charlty tunds 8,020 10.565,036 The financial Statements have been prepared in accordan￿ the pro¥lsions applicable to cotnpanies suble¢l lo the small Cornpan￿8 regime. The finanoal ststemenls on pages 10 to 22 wwe approved and aulhorised for Issue by the trustee5 on signed on thair ￿half by.. and J E Stevens Trustee M Todd Truslee The A550uatson of Sail Training Organisabons Regisl&red Charity Number 1083059 RegiSte￿d Company Number 04084476 Page 11 **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **ACCOUNTING POLICIES** ## **General information, scope and basis of the financial statements** The Association of Sail Training Organisations is an incorporated charity, limited by guarantee, incorporated in England with the company number 04084476. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information page of these financial statements. The nature of the charity’s operations and principal activities are outlined in the trustees' report. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. ## **Statement of cash flows** The charity does not include a statement of cash flows on the grounds that it is applying FRS 102 Section 1A. ## **Incoming resources** All incoming resources are included in the Statement of Financial Activities (SOFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled. Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Investment income is earned through holding assets for investment purposes such as shares and cash deposits. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the Charity’s right to receive payment is established. ## **Resources expended** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: ● costs of raising funds; which includes the costs of organising events and investment management fees ● expenditure on charitable activities; which includes grants made to beneficiaries and costs incurred to support those activities Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the Charity. **Page 12** ## **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** ## FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **ACCOUNTING POLICIES** ## **Resources expended (continued)** ## _Support cost allocation_ Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. The analysis of these costs is included in Note 6. ## **Employee benefits** When employees have rendered service to the Charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The Charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. ## **Pension costs** The charity operates a defined contribution pension scheme. Contributions to the scheme are charged to the statement of financial activities on a payable basis. ## **VAT** The Charity is not registered for VAT and is unable to recover VAT incurred. On this basis costs are recorded inclusive of VAT within the SOFA. ## **Taxation** The charity is considered to pass the tests set out in sections 466 to 493 Corporation Tax Act 2010 (CTA 2010), as such no income tax is payable on the charity's activities. ## **Fixed assets** Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: Computer equipment 33⅓% straight line Fixtures and fittings 15% straight line Leasehold land and buildings 2% straight line (over the period of the lease) ## **Fixed asset investments** Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the SOFA if the shares are publicly traded or their fair value can otherwise be measured reliably. ## **Debtors and creditors receivable / payable within one year** Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In addition it includes cash at bank and in hand and cash balances within the investment portfolio available for investment transaction purposes. ## **Operating leases** Rentals payable under operating leases are charged in the statement of financial activities on a straight line basis over the lease term. **Page 13** ## **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **ACCOUNTING POLICIES** ## **Fund accounting** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Further details of each fund are disclosed in Note 18. ## **Going concern** The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. **Page 14** **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **NOTES TO THE FINANCIAL STATEMENTS** ## **1. Donations and legacies** |**1. Donations and legacies**||||||| |---|---|---|---|---|---|---| |Donations and grants
Royalties
Sponsorship
Membership|**Unrestricted**
**Funds**
**£**
2,061
16,384
-
1,550
19,995|**Restricted**
**Funds**
**£**
37,000
-
-
-
37,000|**2020**
**Total**
**Funds**
**£**
39,061
16,384
-
1,550
56,995|**Unrestricted**
**Funds**
**£**
5,140
6,228
-
1,650
13,018|**Restricted**
**Funds**
**£**
55,785
-
-
-
55,785|**2019**
**Total**
**Funds**
**£**
60,925
6,228
-
1,650| |||||||68,803| ## **2. Income from investments** |Income from investment holdings|**Unrestricted**
**Funds**
**£**
227,364
227,364|**Restricted**
**Funds**
**£**
-
-|**2020**
**Total**
**Funds**
**£**
227,364
227,364|**Unrestricted**
**Funds**
**£**
299,932
299,932|**Restricted**
**Funds**
**£**
-
-|**2019**
**Total**
**Funds**
**£**
299,932| |---|---|---|---|---|---|---| |||||||299,932| ## **3. Income from charitable activities** |UK Sail Training Conference fees
Training
Other income
Small Ships Race|**Unrestricted**
**Funds**
**£**
3,609
710
-
-
4,319|**Restricted**
**Funds**
**£**
-
-
-
(60)
(60)|**2020**
**Total**
**Funds**
**£**
3,609
710
-
(60)
4,259|**Unrestricted**
**Funds**
**£**
2,845
2,008
804
-
5,657|**Restricted**
**Funds**
**£**
-
-
-
1,620
1,620|**2019**
**Total**
**Funds**
**£**
2,845
2,008
804
1,620| |---|---|---|---|---|---|---| |||||||7,277| ## **4. Raising funds - Investment management fees** |Investment management fees|**Unrestricted**
**Funds**
**£**
43,222
43,222|**Restricted**
**Funds**
**£**
-
-|**2020**
**Total**
**Funds**
**£**
43,222
43,222|**Unrestricted**
**Funds**
**£**
49,608
49,608|**Restricted**
**Funds**
**£**
-
-|**2019**
**Total**
**Funds**
**£**
49,608| |---|---|---|---|---|---|---| |||||||49,608| **Page 15** ## **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** ## FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **NOTES TO THE FINANCIAL STATEMENTS** ## **5. Charitable activities** |**5. Charitable activities**||||||| |---|---|---|---|---|---|---| |Hammond Innes grants (see note 7)
Additional bursary awards (see note 7)
Lifeboat grant (see note 7)
Trinity House grants
STI Trainee grants
ASTO Trainee grants
Other grants
_Total grants_
Race and event costs
Instruction and training
Support costs (see note 6)
Governance costs (see note 8)
_Other charitable activities_|**Unrestricted**
**Funds**
**£**
524,619
-
628,825
-
-
-
5,343
1,158,787
6,894
1,281
93,192
4,919
106,286
1,265,073|**Restricted**
**Funds**
**£**
-
-
-
16,686
-
-
2,646
19,332
-
-
-
-
-
19,332|**2020**
**Total**
**Funds**
**£**
524,619
-
628,825
16,686
-
-
7,989
1,178,119
6,894
1,281
93,192
4,919
106,286
1,284,405|**Unrestricted**
**Funds**
**£**
278,057
-
-
-
-
-
2,515
280,572
11,508
2,501
103,377
5,703
123,089
403,661|**Restricted**
**Funds**
**£**
-
58,318
-
29,049
-
-
3,960
91,327
12,134
-
-
-
12,134
103,461|**2019**
**Total**
**Funds**
**£**
278,057
58,318
-
29,049
-
-
6,475| |||||||371,899| |||||||23,642
2,501
103,377
5,703| |||||||135,223| |||||||| |||||||507,122| ## **6. Support costs** |Wages and salaries (see note 9)
Insurance
Office costs
Travel and subsistence
Promotional materials and exhibitions
Sail training research
Bank charges
Repairs and maintenance
Postage and stationery
Advertising and marketing
Miscellaneous expenditure
Depreciation
Loss on disposal of fixed assets|**Unrestricted**
**Funds**
**£**
80,306
2,197
4,236
1,504
1,766
-
249
187
1,029
474
200
1,044
-
93,192|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**2020**
**Total**
**Funds**
**£**
80,306
2,197
4,236
1,504
1,766
-
249
187
1,029
474
200
1,044
-
93,192|**Unrestricted**
**Funds**
**£**
74,539
2,133
4,285
3,185
1,834
13,445
277
150
861
615
985
1,068
-
103,377|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**2019**
**Total**
**Funds**
**£**
74,539
2,133
4,285
3,185
1,834
13,445
277
150
861
615
985
1,068
-| |---|---|---|---|---|---|---| |||||||103,377| **Page 16** ## **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **NOTES TO THE FINANCIAL STATEMENTS** |**7. Analysis of grants**
Grants to institutions
Adventure Under Sail
Adventures Offshore
Boleh Trust
Cat Zero
Challenge Wales
Cirdan Sailing Trust
Combined Cadet Force
Dauntsey's School
Discovery Sailing Project
East Coast Sail Trust
Ellen MacArthur Cancer Trust
Excelsior Trust
Gordonstoun School
Gwennili Trust
Island Trust
Jubilee Sailing Trust
Leila Sailing Trust
Little Brig
Marine Society and Sea Cadets
Maybe Sailing
Morning Star Trust
Ocean Youth Trust North
Ocean Youth Trust Scotland
Ocean Youth Trust South
Pioneer Sailing Trust
Portsmouth Sail Training Trust
Rona Sailing Project
Sea Sanctuary
Sea Change Sailing Trust
Swan Trust
Tall Ships Youth Trust
Tectona
Trinity Sailing Foundation
UKSA
Westward Quest
Grants to individuals
Trinity House *3
STI Trainee
ASTO Trainee grants
Other *4
*1 Hammond Innes
*2 Additional bursary awards|**2020**
**2019**
**Unrestricted**
**Restricted**
**Total**
**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
**£**
**£**
30,268
-
30,268
6,448
-
6,448
11,221
-
11,221
5,553
-
5,553
702
-
702
411
-
411
3,256
-
3,256
1,831
-
1,831
14,097
-
14,097
5,788
-
5,788
23,856
-
23,856
8,881
-
8,881
15,915
-
15,915
9,066
-
9,066
1,064
-
1,064
3,767
-
3,767
11,891
-
11,891
5,354
-
5,354
1,967
-
1,967
796
-
796
15,708
-
15,708
8,234
-
8,234
3,280
-
3,280
2,207
2,083
4,290
15,940
-
15,940
8,890
-
8,890
5,834
-
5,834
2,917
-
2,917
19,055
-
19,055
11,572
18,546
30,118
57,148
-
57,148
36,308
-
36,308
-
-
-
579
-
579
-
-
-
-
-
-
86,449
-
86,449
47,828
-
47,828
12,139
-
12,139
8,266
-
8,266
8,230
-
8,230
4,359
-
4,359
9,230
-
9,230
5,851
13,305
19,156
31,681
-
31,681
16,736
24,384
41,120
19,906
-
19,906
9,229
-
9,229
7,875
-
7,875
3,039
-
3,039
603
-
603
-
-
-
42,382
-
42,382
25,015
-
25,015
190
-
190
470
-
470
3,545
-
3,545
2,790
-
2,790
2,669
-
2,669
1,488
-
1,488
60,139
-
60,139
29,206
-
29,206
5,999
-
5,999
-
-
-
-
-
-
4,093
-
4,093
2,380
-
2,380
484
-
484
-
-
-
601
-
601
524,619
-
524,619
278,057
58,318
336,375
*1
*2
*1
*2
-
16,686
16,686
-
29,049
29,049
-
-
-
-
-
-
-
-
-
-
-
-
5,343
2,646
7,989
2,515
3,960
6,475
5,343
19,332
24,675
2,515
33,009
35,524
529,962
19,332
549,294
280,572
91,327
371,899
Grants to provide opportunities for young people and those with disabilities. Leila Sailing Trust and
Trinity Sailing Foundation ceased operation during the comparative season.
Grants to enable young people to experience the teamwork, communication and leadership required
in managing a sailing yacht. Awarded for providing additional demographic information on those
taking part in Sail Training.| |---|---| *3 Trinity House *4 Other Grants to fund training for individuals To foster international exchanges **Page 17** ## **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **NOTES TO THE FINANCIAL STATEMENTS** ## **7. Analysis of grants (continued)** |Grants to institutions - Lifeboat grants
Adventure Under Sail
Adventures Offshore
Cat Zero
Challenge Wales
Cirdan Sailing Trust
Discovery Sailing Project
Excelsior Trust
Island Trust
Jubilee Sailing Trust
Morning Star Trust
Ocean Youth Trust North
Ocean Youth Trust Scotland
Ocean Youth Trust South
Rona Sailing Project
Sea Change Sailing Trust
Swan Trust
Tall Ships Youth Trust
Lifeboat grants|**2020**
**2019**
**Unrestricted**
**Restricted**
**Total**
**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
**£**
**£**
69,184
-
69,184
-
-
-
25,649
-
25,649
-
-
-
7,442
-
7,442
-
-
-
32,222
-
32,222
-
-
-
54,527
-
54,527
-
-
-
14,400
-
14,400
-
-
-
7,498
-
7,498
-
-
-
43,534
-
43,534
-
-
-
130,623
-
130,623
-
-
-
7,000
-
7,000
-
-
-
21,000
-
21,000
-
-
-
72,413
-
72,413
-
-
-
45,490
-
45,490
-
-
-
3,640
-
3,640
-
-
-
8,103
-
8,103
-
-
-
6,100
-
6,100
-
-
-
80,000
-
80,000
-
-
-
628,825
-
628,825
-
-
-
Grants to support and ensure the future availability of Sail Training opportunities for young people,
following on from the crisis caused by the Coronavirus pandemic in 2020.| |---|---| ## **8. Governance costs** |**8. Governance costs**||||||| |---|---|---|---|---|---|---| |Auditors remuneration - current year
Trustees' travel expenses|**Unrestricted**
**Funds**
**£**
3,840
1,079
4,919|**Restricted**
**Funds**
**£**
-
-
-|**2020**
**Total**
**Funds**
**£**
3,840
1,079
4,919|**Unrestricted**
**Funds**
**£**
3,840
1,863
5,703|**Restricted**
**Funds**
**£**
-
-
-|**2019**
**Total**
**Funds**
**£**
3,840
1,863| |||||||5,703| ## **9. Wages and salary cost** |Gross wages
Employer's national insurance costs (inclusive of employer national insurance allowance)
Employer's pension contributions
Other benefits|**2020**
**Total**
**Funds**
**£**
71,674
3,182
5,351
100
80,307|**2019**
**Total**
**Funds**
**£**
65,571
3,690
5,245
33| |---|---|---| |||74,539| There were no employees with emoluments (excluding employer pension costs) above £60,000 in this or the preceding year The average number of employees analysed by function was: |Administration of charitable activities|2.25
2.25|2.00| |---|---|---| |||2.00| **Page 18** ## **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **NOTES TO THE FINANCIAL STATEMENTS** ## **9. Wages and salary cost (continued)** The number of employees to whom pension contributions are accruing: |Administration of charitable activities
**10. Auditors' remuneration**
Auditors' remuneration - audit|**Unrestricted**
**Funds**
**£**
3,840|**Restricted**
**Funds**
**£**
-|**2020**
**Total**
**Funds**
**£**
3,840|**Unrestricted**
**Funds**
**£**
3,840|2
2
**Restricted**
**Funds**
**£**
-|2| |---|---|---|---|---|---|---| |||||||2| |||||||**2019**
**Total**
**Funds**
**£**
3,840| ## **11. Related party transactions** None of the trustees received any remuneration during the year under review (2019: £nil). £1,079 (2019: £1,863) was reimbursed to or paid on behalf of the trustees listed on page 1 during the period under review. During the year under review donations totalling £2,000 (2019: £nil) were received from the charity's trustees without conditions. The charity's two (2019: two) key management personnel received remuneration as detailed in note 9 and £808 (2019: £1,566) was reimbursed to or paid on behalf of the charity's key management personnel during the year under review for travel and subsistence. In addition, fees were paid to the husband of a member of key management personnel totalling £200 (2019: £372) for photography. ## **12. Tangible fixed assets** |_Cost_
At 1 November 2019
Additions
Disposals
At 31 October 2020
_Depreciation_
Accumulated at 1 November 2019
Charge for the year
On disposals
At 31 October 2020
Net book value at 31 October 2020
Net book value at 31 October 2019|**Leasehold**
**property**
**£**
61,293
-
-
61,293
11,841
835
-
12,676
48,617
49,452|**Office**
**equipment**
**£**
4,830
1,406
-
6,236
4,490
209
-
4,699
1,537
340|**Total**
**£**
66,123
1,406
-| |---|---|---|---| ||||67,529| ||||16,331
1,044
-| ||||17,375| ||||50,154| ||||49,792| **Page 19** ## **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **NOTES TO THE FINANCIAL STATEMENTS** ## **13. Fixed assets investments** |_Reconciliation of movement on investments_
Carrying (market) value brought forward
Additions at cost
Disposals at carrying value
Transfer between managers
Gain/(Loss) on revaluation
Net increase/(decrease) in cash
Carrying (market) value carried forward
_Gains/(losses) on investments_
Unrealised (from above)
Realised on disposal of fixed asset investments
_The investments above are analysed as follows:_
Listed investments
*1
Cash or cash equivalents|**Listed**
**investments**
**£**
10,225,624
1,029,961
(3,159,608)
-
(472,896)
-
7,623,081
(472,896)
(231,843)
(704,739)
7,623,081
-
7,623,081|**Cash**
**£**
264,978
-
-
-
-
811,947
1,076,925
-
-
-
-
1,076,925
1,076,925|**2020**
**Total**
**Funds**
**£**
10,490,602
1,029,961
(3,159,608)
-
(472,896)
811,947
8,700,006
(472,896)
(231,843)
(704,739)
7,623,081
1,076,925
8,700,006|**2019**
**Total**
**Funds**
**£**
10,112,165
921,278
(948,165)
-
559,246
(153,922)| |---|---|---|---|---| |||||10,490,602| |||||559,246
3,868| |||||563,114| |||||10,225,624
264,978| |||||10,490,602| *1 Listed investments including pooled investment vehicles which invest in listed investments. ## **14. Debtors** |**14. Debtors**||| |---|---|---| |Other debtors
Prepayments|**2020**
**Total**
**Funds**
**£**
1,932
-
1,932|**2019**
**Total**
**Funds**
**£**
-
243| |||243| ## **15. Creditors: amounts falling due within one year** |**15. Creditors: amounts falling due within one year**||| |---|---|---| |Accrued expenses
Grants payable
Other creditors|**2020**
**Total**
**Funds**
**£**
3,840
-
302
4,142|**2019**
**Total**
**Funds**
**£**
5,481
36,935
257| |||42,673| **Page 20** ## **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **NOTES TO THE FINANCIAL STATEMENTS** ## **16. Analysis of net assets between funds** |**16. Analysis of net assets between funds**||||| |---|---|---|---|---| |Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities|**Unrestricted**
**Funds**
**£**
50,154
8,700,006
39,678
(4,142)
8,785,696|**Restricted**
**Funds**
**£**
-
-
42,324
-
42,324|**2020**
**Total**
**Funds**
**£**
50,154
8,700,006
82,002
(4,142)
8,828,020|**2019**
**Total**
**Funds**
**£**
49,792
10,490,602
67,315
(42,673)| |||||10,565,036| |**17. Analysis of net movement in funds**
**Total funds**
**brought**
**forward**
**£**
_Restricted funds_
Trinity House Bursary
18,482
Cowes Small Ships Race
1,569
Trainee Bursary Fund
5
Little Brigs
2,646
Royal Standard Maritime Trust
2,014
_Total restricted funds_
24,716
_Unrestricted funds_
_Designated funds_
Fixed asset reserve
49,792
49,792
Fair Value Reserve
1,793,147
General Fund
8,697,381
Unrestricted funds
10,490,528
_Total unrestricted funds_
10,540,320
Total funds
10,565,036|**Total**
**incoming**
**resources**
**£**
37,000
(60)
-
-
-
36,940
-
-
-
258,410
258,410
258,410
295,350|**Total**
**resources**
**expended**
**£**
(16,686)
-
-
(2,646)
-
(19,332)
(1,045)
(1,045)
-
(1,307,250)
(1,307,250)
(1,308,295)
(1,327,627)|**Transfers**
**between**
**funds**
**£**
-
-
-
-
-
-
1,406
1,406
-
(1,406)
(1,406)
-
-|**Gains and**
**(losses) on**
**investments**
**£**
-
-
-
-
-
-
-
-
(962,663)
257,924
(704,739)
(704,739)
(704,739)|**Total funds**
**carried**
**forward**
**£**
38,796
1,509
5
-
2,014| |---|---|---|---|---|---| ||||||42,324| ||||||50,153| ||||||50,153| ||||||830,484
7,905,059| ||||||8,735,543| ||||||| ||||||8,785,696| ||||||8,828,020| ## **18. Description of funds** Funds received to provide grants under the Trinity House Career Development Scheme, providing training for Sail Training staff and volunteers. Trinity House Bursary Funds received to provide grants under the Trinity House Career Development Scheme, providing training for Sail Training staff and volunteers. Cowes Small Ships Race Funds received to organise and run annual small ships races at Cowes. Trainee Bursary Fund Funds received to provide bursaries for young people to enable them to participate in sail training events. Little Brigs project Funds received to support a sail training projects of the Association's members. Royal Standard Maritime Trust Funds received following the closure of registered charity to be spent in furtherance of the closed charity's objects. Fixed Asset Reserve Designated funds representing the net book value of fixed assets. Fair Value Reserve Representing the variance between cost and fair value of the charity's investment assets. Representing the variance between cost and fair value of the charity's investment assets. **Page 21** **THE ASSOCIATION OF SAIL TRAINING ORGANISATIONS** FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020 ## **NOTES TO THE FINANCIAL STATEMENTS** ## **19. Pension scheme** The charity operates defined contribution pension scheme for its employees. The total payable for the year under review was £5,351 (2019: £5,245). There were no amounts outstanding at the end of the current period or comparative financial year. ## **20. Commitments under operating lease** |**20. Commitments under operating lease**||| |---|---|---| ||**2020**|**2019**| ||**Total**|**Total**| |At 31 October the charity had total minimum lease payments under a non-cancellable operating lease as|**Funds**|**Funds**| |follows:|**£**|**£**| |Not later than one year|-|244| |Later than one year not later than five years|-|-| ||-|244| ## **22. Financial instruments** The carrying amounts of the charity's financial instruments are as follows: |**22. Financial instruments**
The carrying amounts of the charity's financial instruments are as follows:||| |---|---|---| |_Financial assets_
Measured at fair value through net income/(expenditure):
Fixed asset investments|**2020**
**Total**
**Funds**
**£**
8,700,006
8,700,006|**2019**
**Total**
**Funds**
**£**
10,490,602| |||10,490,602| The income, expense, net gains and net losses attributable to the charity's financial instruments are summarised as follows: |_Income and expense_
Financial assets measured at fair value through net income/(expenditure)
Investment income
Investment management fees
_Net gains and losses (including changes In fair value)_
Financial assets measured at fair value through net income/(expenditure)
Unrealised gains/(losses) on investments
Realised gains/(losses) on investments|**2019**
**Total**
**Funds**
**£**
227,364
(43,222)
184,142
(472,896)
(231,843)
(704,739)|**2018**
**Total**
**Funds**
**£**
299,932
(49,608)| |---|---|---| |||250,324| |||559,246
3,868| |||563,114| Fixed asset investments are held at fair value with valuations obtained using closing mid-market price. **Page 22**