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2022-12-31-accounts

THE MISSION TO SEAFARERS

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

A company limited by guarantee, registered in England and Wales no. 6220240 A charity registered in England and Wales no. 1123613

First Floor, 6 Bath Place, Rivington Street, London EC2A 3JE www.missiontoseafarers.org

@flyingangelnews

THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022

CONTENTS

Page
Introduction 1
Strategic Report 3
Financial Review 11
Charity Information 17
Governance, Structure and Management 19
Statement of Trustees’ Responsibilities 23
Independent Auditor’s Report to the Members 24
of The Mission to Seafarers
Financial Statements:
Consolidated Statement of Financial Activities 27
Consolidated Balance Sheet 28
Company Balance Sheet 29
Consolidated Statement of Cash Flows 30
Notes to Financial Statements 31

THE MISSION TO SEAFARERS TRUSTEES. ANNUAL REPORT AND ACCOUNTS 2022 Cèring far seafarers ihe wotrld Introductlon Our Annual Reports of the last tsvo years have reliected the massive disruption and difficulty that faced our beneficiaries. seafareis and their familEs. as a resum of the COVID-19 pandemic. These brought enhanced urgency to our work and extraordinary challenges in delNering il. Those impacts and Challenges Continued right through 2022, wtth the Shore Leave issue particularty prevalent, and often delrimenlal lo seafarei well- being. AlongsKle ils impact on crews. the pandemic had a major effect on our work, especially on our network of ovef 120 Seafaier Centres, although many are now ￿1￿9 usage once again. Then in March 2022, seafarers, and their families, We￿ hrt by a second devastating crisis- the Ukfaine war. With Ukrainians and Russians making up 15% of the crew workforce. wrth famils in Ukraine under intense stress and with many other seafarers caught up in the conflKt. there were huge demands on our teams for pastoral and practical intervention. Our work in 2022 has taken place against the background of these crises, both of whtch have hil seafarers with particular ferocty. as well as in the context of the usual intense challenges they experience. In ports. the emphasis throughout 2022 remained on our proactive visitat￿n of ships. Face-lo-face welfare support remains essential, and the core of our output. The value of seeing a friendly fa￿ in a strange port cannot be overmphasiseé. of heanng a drflerenl voice. of being able to share good news and bad. seek confidential admce or request more overdy spintual support. Our teams have brought their Skills in mental health first aid and post trauma support Pastoral support has combined wrth pradical services that have been hugely important. These have included the extraordinary amount5 of petsonal shopping carried out foi seafarers who could not disembark In port. a reality refiected strongly in OUT Stalislics. In addition. the facilitstion of communication has tsken on a new s￿nthcance in the absence of shNe leave, and in relation lo the need for Ukrainians lo maintain cA)nrEcb"vty wilh their homes. Our extensive portlolio of fast-developing wider prcoramme has been a very imFQrtanl feature of recent years, and continued lo be in 2022. This features significantly in this report. 2022 has also seen the 1mplen￿ntatIOn of the recommendations of a major External Govemance Review, the move of our IHQ team to a new head office building IcNJether wrth ML￿tt changed patterns of working, an expansion of our IHQ team and a reordering of our Senior Management Team. There has also been significant changes in leadeT5hip al Regional level following Pfomotions and retirements. We have continued our governance improvement joumey. wrth a particular emphasis in 2022 on Health and Safety. l also note the ongoing success of our Oevebjpment Team on whose fundraising we remain uttety dependent. These are some of the highlights of what has been another year of enormous challenge and very positive outcomes. Output has remained absolutely fccused on Iransfoming the lives of Seafarers and their families in these aGLrtely drffi¢ult times. We are a Chnstian mis$K￿, closely linked with the Church of England and the Angliean Church worldw￿e. That mission ￿ expressed hdisticalty. inclusivety and practically bul il has a deep spintual underpinning which continues lo infomi and guide all that we do. In closing this introduction lo our Annual Report, I musl acknowledge and thank our teams in London and around the world. the vast number of supporters, indmdual aThJ cortKKale. who conlinue lo make our work possible. and my own colleague Trustees. Tom Boardtey

THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 STRATEGIC REPORT

The Mission to Seafarers Trustees’ Annual Report (incorporating the Directors’ report as required by Company Law) for the financial year ending 31 December 2022

Our Object

The object of The Mission to Seafarers (“the Mission”), as stated in the Articles of Association, and for which we are established for the public benefit, is:

“To promote the spiritual, moral and physical wellbeing of seafarers and their families worldwide.”

Our Common Standards

The Mission has further revised and developed a range of common standards to maintain a strong sense of unity and common purpose, to sustain and protect its reputation and to promote high quality ministry. They will be applicable to all the Mission ‘Members’ including all Mission to Seafarers ‘Flying Angel’ local stations, operations and honorary chaplaincies as follows;

Our Vision

Our vision for the world’s 1.6 million seafarers of all ranks, nationalities and beliefs is to:

Our Mission

Our simple mission is to care for the shipping industry’s most important asset: its people.

Throughout a long and distinguished history, the Mission has grown to become one of the largest port-based welfare operators in the world, with a presence in almost 200 ports. We provide a service 365 days a year, across 50 countries where 118 of these ports have a Flying Angel centre. International Headquarters (IHQ) in London directly supports over 70 front-line staff in addition to an army of volunteers who visit ships, offer hospitality, drive minibuses and engage in a range of other welfare activities.

Our Ethos

Our historic and integral partnership with the Anglican Church continues to be central to our ethos. It has traditionally found particular expression in how local teams should normally be licensed, recognised or affirmed by Diocesan Bishops as appropriate. In addition, it is expressed through our commitment to the Five Marks of Mission. We seek to maintain and develop close and supportive relationships with the worldwide Anglican Communion.

We are also deeply committed to effective ecumenical co-operation locally, regionally and internationally. We actively seek to sustain the best in such working, including through our longstanding and proactive engagement within the International Christian Maritime Association (ICMA).

Our ethos is one which also stresses the importance of the widest possible partnership and collaboration to the benefit of seafarers and their families.

Our Values

Pioneering : Being open to God’s leading, we encourage innovative thinking and seek to be flexible and entrepreneurial in our ways of working.

Inclusive : We are unconditionally committed to the support of all seafarers and their families without discrimination.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022

STRATEGIC REPORT

United : We are one global, intergenerational, multicultural family united in vision and purpose, while respecting diversity of culture and context.

Collaborative : We are co-operative in our approach to our work – in relation to individuals, the church, ecumenical partners, and organisations and institutions that work for the welfare of seafarers.

Accountable : We are accountable to God as stewards of the resources entrusted to us, to each other in recognition of our mutual inter-dependence and to those charged with governance at local station, regional and international level.

Caring: In all our dealings we strive to behave with compassion, to act with integrity and to treat everyone with respect.

Our Code of Conduct

Our membership of ICMA carries an obligation to abide by the Constitution of the Association and its Code of Conduct.

In a fragmented and divided society it is ICMA’s mission to promote unity, peace and tolerance. ICMA was founded to promote and co-ordinate Christian ecumenical co-operation in maritime ministry. Chaplains and staff of all ICMA Member Societies at local, national and international level are therefore to:

Our Standards

The Mission to Seafarers aspires to the very highest quality of professional standards and is absolutely committed to effective and transparent safeguarding.

Our Common Identity

All Members share a common identity, which includes the use of the name “The Mission to Seafarers” and/or “Flying Angel Club”, followed where applicable by the name of the relevant region/country/local station, and the use of the Flying Angel logo.

As such, Members should be sensitive to the fact that the actions of one or more Member, even within their own national or regional context, may significantly affect others across the global network.

Our Ministry

We are committed to Christian mission, informed by the “Five Marks of Mission”, with a focus on a holistic, proactive, professional and engaged response to the needs of seafarers and their families.

Our port-based ministries will reflect in some measure the following services, as is appropriate within the local context. The Mission to Seafarers encourages a creative, contextual and entrepreneurial approach, providing it is in line with seafarer need and is sustainable. Areas of ministry may include:

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022

STRATEGIC REPORT

Our Work 2022 - Overview

1. Seafarers

The acute pandemic-related challenges of 2020 and 2021 continued throughout 2022. These focused particularly on the issue of shore leave, which remained very limited throughout the year, but with emerging evidence of a gradual relaxation globally. The lingering impacts of COVID-19 combined with the outbreak of war in Ukraine had huge implications for Ukrainian and Russian seafarers, as well as for those who found themselves trapped in Ukrainian ports or even under direct attack (one such ship and its traumatised crew was visited by our Chaplain in Turkey). Clearly Ukrainian crew face acute dilemmas and great anxiety for their families, with decisions to be made about returning home or not. Many of these families were based in badlyhit areas. Large numbers became refugees and some suffered injury, death and the loss of homes. These double crises added to all the usual challenges faced by seafarers and their families and posed enormous challenges for seafarer well-being and consequently our need to respond rapidly and relevantly.

2. Our Operations

Ports

Many of the ways in which we normally deliver our work continued to be under severe pressure through 2022. In 2021 our global network of hospitality centres, together with our transport fleets, faced reduced crew footfall of 93%. In 2022, as statistics demonstrate, we began to see something of a recovery, but from historically very low levels. We are in a period of significant uncertainty. Seafarers, the maritime industry and maritime welfare have been through an unprecedented three-year disruption – in addition to wider drivers of change. We are in an emerging new world and are yet to see the full impact of all this on future patterns of seafarer’ behaviour, on company and local regulation and on port security. We believe that seafarer centres will continue to have an important place in seafarer support but they will need to be the right models in the right places. While we are delighted to see a gradual reopening of centres, we recognise that further modernisation and development will be required. 2022 has seen the start of significant planning in line with strategy – particularly around modular and mobile centres. We intend to be in a strong position to lead change once we have greater clarity.

Throughout 2022, our focus has been on sustaining and growing proactive ship visitation. This is the best way of ensuring vital face-to-face contact with crew. While we fully recognise the value of digital welfare initiatives and are adopting a hybrid approach ourselves, we continue to believe that personal interventions will always have an irreplaceable role. Significant new investment in paid ship visiting across all our nine regions was made available from 2022 (see below). We continue to be committed to highly professional and well trained teams, not least in the areas of mental health first aid and post trauma support. Again, fresh investment was made available in 2022 for supporting training initiatives through the strategic period.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 STRATEGIC REPORT

Volunteering has taken a big hit through COVID-19, with many of our older volunteers not returning after a three year gap. As we begin to reopen centres and expand ship visiting, careful attention is being paid to recruitment and support.

Wider Programme

Our wider programmes have continued to expand and develop. Our WeCare educational resources in communication and financial literacy reached more than 85,000 seafarers in 2022 and we began to develop a formal Family Support Network in South India, based on our successful model in the Philippines. Since the start of the pandemic, our Seafarers Happiness Index has been the industry’s barometer of what crew are thinking and this continued into 2022 with four published reports and a new sponsorship partnership with Idwal and NorthStandard. Work on our new seafarer wellbeing app was completed but technical approvals have delayed the launch until 2023.

3. Finances

After two extraordinary years in fundraising, with exceptional corporate donations and legacies, 2022 has been more of a “normal” year. Corporate donations from within the maritime industry remain our prime focus and the likeliest avenue to continued long term sustainability, together with the major maritime grant funders who remain vital to our continuing work. However, events, legacies and individual and church giving all remain very important and valued income streams. Most streams showed returns on or beyond target. We benefit from an exceptional Development team and the support of some key figures within industry. Of note, has been significant levels of government funding into our New Zealand work. There is optimism that Australia will follow. We are active in encouraging these and other governments to consider structured funding for maritime welfare organisations as part of their responsibility under the Maritime and Labour Convention. Trustees have done detailed work on our reserves and we are working to a careful financial parameter plan which will deliberately reduce our reserve levels over time, maximising spending on front-line work while protecting long term sustainability. Our strategy also commits us to further building of local and regional sustainability wherever possible, diversifying our fundraising and making it less UK dependent. As we emerge from the pandemic there will be renewed focus on this.

4. General

Our new global strategy was launched at the start of the year and progress is reflected in this report. While its core themes are clear and relevant, there are considerable uncertainties about the exact nature of seafarer need and behaviour in the emerging post pandemic environment and there will need to be considerable flexibility in the timing and nature of its full rollout.

An External Governance Review (EGR) reported in 2022. While its outcomes were affirmatory and encouraging, it usefully highlighted a number of areas for consideration, including the need for some adjustment in trustee length of service, for a further review of our Reserves policy, to increase the size of our head office team, to adjust our Senior Management Team structure and to take further measures in regard to Safeguarding. Necessary actions have followed through the year.

Also in 2022 the Mission’s new head office opened in Shoreditch with staff returning and working on a very different basis to pre-COVID-19. We expanded all our IHQ teams in line with the recommendations of the EGR and in response to growing demand across all areas, including programme and compliance.

Our Work 2022 – Strategy and output

Programme

Strategic aim: we will deliver effective maritime ministry to the highest possible standard, within a framework of sound governance and accountability. Over the next five years we will seek to achieve:

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 STRATEGIC REPORT

Ports chaplaincy and ship visiting

The most visible sign of The Mission to Seafarers is our network of port chaplains and welfare teams in 200 ports across 50 countries. Outputs for our UK and Grant Funded chaplaincies were;

Activity 2022 2021
Ship Visits 21,623 21,056
Seafarers centre attendees 33,686 15,412
Seafarers transported 15,533 6,434
Justice and Welfare Cases 1,037 951
Numbers of Seafarers met during a ship visit 151,361 105,280

It should be noted that in 2022 some locations around the world remained in strict lockdown and port access continued to be an issue, particularly for those chaplaincy projects which we fund in developing countries. Officially, the Mission’s teams did not enter vessels until May 2022 when a decision was taken by the Regional Directors to amend the COVID-19 Protocols. When ship visiting did return to include indoor activity, social distancing, masks and sensible precautions were maintained.

With the rise of in-vessel visiting, we have increased the number of ship visit interactions for 2022 to seven, on the basis that a ship visitor will encounter a seafarer at the security desk at the top of the gangway (1), an escort to the Master’s Office (2), an interaction with the Master (3) and other senior officer (4), a conversation with the Cook (5) and galley staff (6), and at least one interaction in the Mess (7). This estimate does not work for all ship types (notably cruise vessels) but we believe this to be a reasonable representation of what happens during a ship visit.

When added to our global Mission to Seafarers family, the above statistics rise to:

Activity 2022 2021
Ship Visits 39,068 34,629
Seafarers centre attendees 69,743 23,629
Seafarers transported 51,013 12,131
Justice and Welfare Cases 1,358 1,383
Numbers of Seafarers met during a ship visit 273,476 173,155

During 2022 a £750,000 three-year project was launched to expand ship visitation across all nine regions

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 STRATEGIC REPORT

Ongoing COVID-19 relief and management support was provided to local stations including financial support where needed and practical help by providing PPE and sanitising stations.

Wider Programme

Our wider programme of mental health resources, resilience training and working with seafarers’ families continued to grow in 2022. The Philippine Family Network continued to be in high demand. Building on our pandemic feeding programme in South India, we have taken steps to formalise a Family Support Network in Tuticorin, India. An initial assessment of need has been completed, and we have provided funding for a homework club, along with sewing lessons. In 2023, we will recruit an in-country co-ordinator who will help to develop the work in line with local need.

Tuticorin Family Network;
Family Programme Participants 2,050
Philippines Family Network
Family Programme Participants 3,549
No. of welfare cases dealt with
in Manila		 1,353
No. of members in the Family
Network		 3,621

New partnerships were formed with Kadmos, BSM and OTG to reach more seafarers with access to our WeCare courses in communication and financial literacy.

In 2022, our Programme Manager qualified to train a suicide awareness programme called SafeTALK. In 2022 we trained 180 “suicide alert helpers” from 28 organisations, including Mission to Seafarers volunteers, other seafarers’ welfare societies and shoreside personnel. In 2023, our intention is to make this course more seafarer friendly with the aim of training seafarers directly.

WeCare
Number of seafarers and family
members trained in 2022		 2,436
Seafarers with access to the
courses in 2022		 85,241
SafeTALK
No. of Suicide Alert Helpers
trained		 180
No. of organisations that
received training		 28

Provision

Strategic aim: we will seek to resource ministry fairly and appropriately, while building a sustainable future, recognising that longer-term financial dependency on IHQ is not viable. Over the next five years we will seek to achieve:

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 STRATEGIC REPORT

This was a more challenging year financially, compared to the immediate previous years. Our reserves took a major hit with a £3.5m unrealised investment loss and, as expected, income levels were lower in comparison to the two previous exceptional years. However, our undergirding fundraising trends remained highly positive, with strong income across most streams, including corporate, legacy, individual donations and events. Community and church fundraising has begun to recover post-COVID-19. Two new positions were added to the Development team in line with strategy, one in data and one in communications, which has assisted the whole team. The communications team continued to target new audiences, contributing to enhanced individual and corporate donations. We aimed to increase the numbers of new digital donors by 100% in 2022 compared to 761 new digital donors in 2021 and achieved 526 (69%). We will continue to aim for a 100% increase in subsequent years.

We continued to prioritise building our corporate funding from within the shipping industry. Our chief vehicle for this was the Sustaining Crew Welfare Fund, building on the major successes of 2021. An outstanding fundraising event from Eastern Pacific Shipping raised over Sing$1.5m, contributing to a very wide variety of Mission projects globally. Work continued to develop fundraising more intentionally beyond the UK, expanding on existing corporate audiences in Asia (with very extensive work on the major 2023 Adventure Race Japan during 2022 and significant sponsorship funds already received during the year.)

Planning also began in relation to future development in the USA.

The fifth year of our major annual Singapore Dinner and International Awards continued to grow. Our Trustees continue to look strategically at all aspects of our financial performance. Following our External Governance Review, the Board revisited and reaffirmed the parameters which guide our financial planning and our approach to sensibly reducing reserves. We continued to support our Regions in their fundraising . This included delivering a comprehensive media and fundraising training to all Regional Directors. The setting up of a media representational group is in its fledgling stage.

Partnership

Strategic aim: we will prioritise partnerships to ensure efficient, collaborative and coordinated delivery of care to seafarers. Over the next five years we seek to achieve:

In 2022 we continued to be significant funders and supporters of ICMA (the International Christian Maritime Association) and our Secretary General completed 4 years as their chairman (a role fully funded by Mission to Seafarers’ Trustees). We also continued to build local, regional and national working relationships with key welfare colleague societies. We agreed a formal partnership with the Deutsche Seemannsmission (DSM) to co-operate in Panama (including with a new shared joint-post), we informally agreed with DSM for some shared work in Africa from 2023, we established a new joint chaplaincy role in Tilbury/London Gateway, UK, with Queen Victoria Seaman’s Rest and concluded work with Stella Maris and Sailor’s Society to re-establish three UK Ecumenical Centres under new Queen Victoria Seaman’s Rest leadership.

Possibilities

Strategic aim: we will inspire, encourage and resource our global Mission family in exploring and pioneering new opportunities, looking boldly and creatively towards the next horizon. Over the next five years we will seek to achieve:

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 STRATEGIC REPORT

Significant work was carried out in 2022 in developing our new seafarer welfare app, which will go live in early 2023. Our £750,000 commitment to grow ship visitation across all regions opened up a significant range of new possibilities, many of which (as above) were realised in 2022. Of particular importance was the launch of a comprehensive plan to grow our work in the USA, in line with welfare need.

2023 Objective and activities

In 2023 we anticipate substantial growth in the use of our centres as “shore leave” provision increases and the impact of the pandemic on seafarers continues to ease. However, as stated above there will be some continued effect through both regulation and seafarer behaviour, especially in some of the countries in which we work. Flexibility will be necessary, together with an emphasis on exploring new models, both of Mission infrastructure and changed patterns of working. We will continue to prioritise proactive ship visitation. The lingering impacts of COVID-19, ongoing conflict in Ukraine, wider international tensions and global financial and political uncertainties will combine with an industry undergoing change, not least through increasing automation, to ensure unpredictable levels of potential change and disruption. Seafarers are often hit first and hardest.

Programme

Ports:

We will continue with our modernisation of our port-based working, with relevance and sustainability a driving factor at regional and local level, to include:

Wider programme:

Training and Governance:

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 STRATEGIC REPORT

Provision

Partnership

Possibilities

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 FINANCIAL REVIEW

2022 – Income and expenditure

The Consolidated Statement of Financial Activities is shown on page 27.

In 2022, the net movement in funds was a deficit of £4,166,000 (2021: gain £6,897.000). The main reason was due to a 2022 unrealised investment loss of £3,509,000 (2021: gain £3,383,000) and in 2021 we were very thankful to receive an exceptional legacy of almost £3m, which was not repeated in 2022.

Overall, 2022 was a difficult year for both the UK and wider economies and total income is down at £4,945,000 (2021: £8,607,000 – but, without the exceptional legacy 2021, income was £5,807,000). Income from trading with seafarers has fallen to £204,000 (2021: £327,000) but much of this is because we were able to distribute £232,000 of donated SIM cards to seafarers free of charge, which is included in both income and expenditure as a Gift in Kind. Overall general donations are up slightly at £1,680,000 (2021 £1,470,000) due to the continued support of donors, more local activity being undertaken as the threat of COVID-19 has receded and successful appeals. There was no major fundraising campaign in 2022 to follow on from the 2020 and 2021 successful Flying Angel Campaign and the Sustaining Crew Welfare initiative and general grants are down at £760,000 (2021: £959,000).

Donations, grants and legacy income, together with investment income make up the Mission’s principal funding sources and represent 90% of total income (2021: 92%). They are a major contribution to funding the cost of the Mission’s charitable activities.

Total operating expenditure increased by £640,000 (12.7%) to £5,697,000 (2021: £5,057,000) as, post COVID19, there were a number of staff movements and new appointments hence staff costs have increased. Also work began on the first year of the new strategy with research and the launch of the new global Ship Visitors programme. Expenditure for charitable activities increased by £525,000 (12%) to £4,780,000 (2021: £4,255,000) and the costs of Raising Funds increased by £115,000 (14%) to £917,000 (2021: £802,000) as events and activities were able to resume post COVID-19. An analysis of expenditure is given in note 8 to the Financial Statements. The proportion of total expenditure that the Mission considers to be of a charitable nature is 84% (2021: 84%).

The Mission’s investment portfolio concluded the year with a loss of £3,509,000 (2021: gain £3,383,000). However, unrealised investment gains or losses reflect market movements during the year and are not cash surpluses or deficits. They are not available to fund expenditure unless and until the investment is finally sold. Fluctuations in the stock market can impact on the Mission’s reserves as can be clearly shown by the result for 2022. Investment income improved by 22% to £871,000 (2021: £712,000) as interest rate rises have contributed to higher returns.

The Mission participates in various pension schemes. Some are defined contribution schemes with no liabilities at the year end and others are multi-employer, defined benefit schemes where the Mission’s ongoing liability at the year end was £nil (2021: £16,000).

The net loss before investment and foreign exchange gains for the Mission’s four (2021: four) subsidiaries is £5,000 (2021: loss £20,000). With their total reserves of £140,000 (2021: £143,000) the Trustees confirm that one is in deficit (2021: none) with the Dunkirk War Memorial Trust, which was not operational in 2022, suffering investment losses of £13,000 (2021: gain £14,300). See notes 2 and 17.2 for further information about the subsidiaries.

Balance sheet

The Mission’s group balance sheet shows that net assets have decreased by £4.2m to £39.7 million (2021: £43.9 million) and are made up of;

Restricted reserves £833,000 (2021: £922,000) (see Note 20) General reserves £23.1 million (2021: £26.3 million) Designated reserves £15.8 million (2021: £16.6 million) which are not available for general purposes. (See note 21)

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 FINANCIAL REVIEW

Reserves

The Mission’s policy is to maintain general reserves to reflect the long-term nature of its work. As the temporary custodians of these reserves, Trustees feel that it is essential that they leave The Mission to Seafarers in a state where it can continue for as long as seafarers need it and there are no signs of this need diminishing.

During 2022 the Trustees discussed and reviewed the policy and have reconfirmed that they continue to believe that general reserves should not fall below a total of three year’s expenditure. Based on the 2023 budget, that figure equates to £18.2m. General reserves at the year end are £23.1m (£4.9m above the minimum required) and Trustees confirmed that there should be a continued, intentional and responsible utilisation of reserves over the strategic period, within agreed parameters. This will be achieved through a targeted reduction of deficit budgets with the aim of attaining long-term financial sustainability but allowing for intentional strategic expenditure and/or a response to unforeseen circumstances

In the opinion of the Trustees, a minimum of three year’s expenditure continues to be required to meet future working and capital requirements having taken into account the following factors:

The level of the unrestricted general reserves has provided some protection to the Mission and allows time to adjust to changing financial circumstances. This has limited the risk to service provision from operating deficits, such as the Mission has experienced in recent years, or an unexpected need for unbudgeted expenditure. Indeed, during the COVID-19 pandemic in 2020 and 2021 this has provided protection and security for the Mission from the impact of COVID-19 as a proportion of investments were sold to provide enough cashflow to ensure that the Mission remained a going concern whatever the performance of stock markets. In 2022, the Mission’s reserves allowed additional unbudgeted funds to be provided to respond to the needs of seafarers and their families resulting from the war in Ukraine. The reserves also helped to weather the impact of investment losses as global stock markets respond to the conflict and economic pressures.

Going concern

The Trustees consider that it is appropriate for the Financial Statements to be prepared on a going concern basis as they believe that the current level of reserves and cash holdings at the date of signing will enable the Mission to survive the continuing impact of the COVID-19 pandemic and any impact from the war in Ukraine. They will also ensure that the Mission can continue to be able to support seafarers for the foreseeable future.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 FINANCIAL REVIEW

Risk Management

The Board of Trustees has overall responsibility for risk management and maintains a Risk Register. This is included in the remit of the Audit and Risk Committee and continually monitored by the Senior Management Team.

The Risk Register identifies risks which:

The Register is reviewed as needed, but annually as a minimum. It was reviewed extensively by the Audit and Risk Committee in November and some risks were expanded and/or repositioned based on the score of each risk. One risk relating to Section 75 pension liability was downgraded to the Operational Risk Register for monitoring by Management while a new risk relating to the Mission’s external advisers not acting in its best interests or suffering internal failures was added. The possibility of a cyber-attack was identified as a growing area of global concern, elevating Information Technology risk on the Register. Appropriate mitigating measures were added including the development of a Cyber Incidence Response Plan.

The principal risks that the Mission faces and the actions it takes to mitigate these risks are that:

It was feared that this risk would materialise as a result of the impact of the Pandemic. However, fundraising performed exceptionally well in the two Pandemic years and has now returned to more normal levels. The reserves position remains strong although there is extreme volatility in the market and inflation has soared. The Finance Working Group which began meeting informally during the COVID-19 pandemic now meets often, usually monthly, to analyse the Mission’s financial position and advises the Board accordingly. Additionally, budgets and income forecasts are being updated regularly with an emphasis on reducing costs where possible and close financial monitoring is in place through forecasts, management accounts and oversight of the Audit and Risk committee.

The Mission’s main resource in delivering services is its staff and volunteers who are subject to reference checks prior to engagement and DBS checks where appropriate. Staff and volunteer handbooks provide guidance and information on behaviour with training and on-going performance reviews to ensure that staff maintain the highest of standards. A Safeguarding and Professional Conduct Policy has been devised and implemented, supported by appropriate training. A Safeguarding Working group has been established with a Safeguarding lead trustee and deputy nominated. Adoption and implementation of this policy is a condition included in MOUs for all grants provided by the Mission. There are also contingency damage limitation plans in place.

Investment Policy

The Mission holds investments to help meet its current and future obligations and as a reserve against future shortfalls between income and expenditure. It is intended to hold reserves for the long term as the need to provide support and care to seafarers is not diminishing and it is expected that the Mission’s activities, including long term housing commitments to retired employees and Church of England pension obligations, will continue for many years.

The overall aim of the Mission in holding investments is to produce the best financial return within an acceptable level of risk, in order to protect the long-term reserves against inflation and produce regular flows of funds to support fixed costs and operating activities both in the UK and overseas.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 FINANCIAL REVIEW

The investment reserves are divided into:

In the implementation of this policy, the Trustees follow the Charity Commission guidance for the investment of charitable funds. Additionally, the Mission does not wish to profit directly from, or provide capital to, activities that are materially inconsistent with Christian values. This is ensured as the Trustees also follow the guidelines of the Church of England’s Ethical Investment Advisory Group which may prohibit or limit the investment in stocks with exposure to certain sectors, such as armament and tobacco.

The Trustees will select one or more professional investment management firms to manage its investments in line with this policy. Such appointments can be in the form of bespoke agreements to manage the Mission’s portfolio on a segregated basis, or via investments in pooled vehicles. The Investment Committee will from time to time make recommendations to the Board on the best approach to use, based on its assessment of the relative merits of each. The Investment Committee also performs the oversight of the Investment Managers and periodically reviews their performance, commercial terms and overall services and, if appropriate, makes recommendations to the Board for any change. This policy was reviewed in 2022.

Investment Portfolio

CCLA, which is regulated by the Financial Conduct Authority, is the investment manager for the Mission’s funds. The assets have been invested with CCLA in the CBF Church of England Investment Fund (Investment Fund) which is a multi-asset common fund worth over £1,900 million as at 31 December 2022 and benefits from charitable status. Investment in the Investment Fund is based on the purchase of units that can be bought or sold at any time.

The prime objective of the Investment Fund is to protect and grow the real value of the capital invested and the income that it provides and it is managed in accordance with the policies of the Church of England’s Ethical Investment Advisory Group and therefore fits with the Mission’s investment policy.

Investment Performance

In 2022 the total return net performance for the Mission’s investments managed by CCLA was a loss of 9.16% (2021: gain 17.46%) and the performance of the comparator* was a loss of 10.12% (2021: gain 16.96%). Gross dividend yield was 2.99% (2021: 2.64%) based upon mid-market price and an annual dividend of 61.79p (2021: 59.99p).

(*Comparator - composite: from 01.01.21 MSCI World 75%, MSCI UK Monthly Property 5%, iBoxx £ Gilts 15% & SONIA 5%.)

Fundraising

The Development team at the London IHQ is responsible for fundraising, communications and marketing. The team has continued to build upon the previous year’s results in generating a substantial level of income for the charity whilst working around the continuing challenges that the COVID-19 pandemic has placed on fundraising activities. Our marketing and communications obligations have also continued to increase the profile of the Mission across the wider global maritime world, increasing awareness of our work and the reliance that we all have on seafarers.

Total fundraised income at IHQ for 2022 was £3,451,000 (2021: £6,234,000) a decrease of £2,783,000 (45%) which is mainly due to decreased legacy income £1,033,000 (2021: £4,279,000) following the previously mentioned £2.8m exceptional legacy received last year. We are very grateful to those supporters who made these commitments, sometimes many years ago. We also thank those who have pledged legacies during the year. This is a valuable source of income for us.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 FINANCIAL REVIEW

Donations are received from individuals, churches, fundraising committees, grant giving bodies, trusts and corporates, especially those in the maritime sector. Some donations are linked to specific appeals such as the regular Lent, Summer, Christmas and Sea Sunday activities or specific events and campaigns such as the 2021/2 Sustaining Crew Welfare Campaign . Some individuals and teams undertake challenge events and we were pleased to see the continued support of Graig100 and IMO Richmond Bike rides, along with an inaugural Golf Day with Hayfin.

We were grateful to receive £332,000 as a result of the EPS Global Fundraiser, which raised overall S$1,5m with a large contribution going to Singapore and the wider Asia Region.

Our partnership with the UKP&I Club continues into a fifth year, with support for the WeCare programmes. These programmes have continued to steadily grow within a manageable level, with a combination of online and face-to-face delivery. The new SafeTalk was started but we expect to see an increased delivery of this in 2023. Work with HFW continues to provide vital pro bono and fundraising support, for which we are so very grateful and we deeply appreciate all the companies, trusts, foundations and individuals who have continued to support us so generously to help seafarers in so much need. Our regular and individual giving for 2022 was a valuable £482,000 (2021: £493,000).

The Events team has been busy planning the 2023 Adventure Race Japan and are pleased that in-person events are increased in 2022 as mentioned above with income £136,000 (2021: £118,000) and that the successful bike ride ‘The Graig 100’ and the annual Festival of Nine Lessons and Carols service at All Hallows in London were able to take place again.

Post COVID-19 other areas of fundraising have increased as more activities have resumed with Community fundraising £149,000 (2021: £94,000) and Trusts and Foundations income at £630,000 (2021: £523,000). We also greatly assisted the global Mission family by providing trust expertise, the value of which does not appear in these accounts.

Our Communications Officer was promoted to Communications Manager and the new Communications Assistant is supporting her well. This will help us focus our communications into a more targeted approach using analytical skills building upon the past two years’ successes. The communications agency Blue has played an important role in supporting us and ensuring that our responses to journalist and media opportunities are targeted and focused.

As we enter 2023, we are continuing to shape our communications activity, to ensure the most efficient delivery of this activity to the IHQ team and the wider global Mission in line with the Global Strategy.

The Mission is a contributor to the Fundraising Regulator who regulates fundraising in England and Wales with the aim of protecting donors to charities and ensuring that fundraising is respectful, open, honest and accountable to the public. In accordance with The Charities (Protection and Social Investment) Act 2016 we confirm that:

Environment, Social, Governance

The Mission to Seafarers is treating the Environment, Social, Governance (ESG) agenda and its responsibilities with great seriousness. Trustees and senior management are keeping it at the forefront of our thinking and it has already been heavily discussed, including with external input. We seek alignment with best practice. The

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022

FINANCIAL REVIEW

Social and Governance aspects are well advanced in terms of current policies and operations. Environmental policies and practice are the focus of current thinking and planning. An Environmental Action Group, with global representation, has been meeting since November 2021 and will be making recommendations. It will be our aim to ensure that appropriate policies and cultures are in place globally. We are conscious that our global carbon footprint has been much reduced through the pandemic period (2020 and 2021). Severe restrictions on travel, vehicle usage, staff commuting and centre usage have all been key factors. As we emerge into more “normal” times we are seeking appropriate measurements, benchmarks and policies. Environmental responsibility is seen as a core value and is contained within the new strategy. The Mission to Seafarers plans to roll out ESG reporting annually in stages from 2023 (for the 2022 year).

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 CHARITY INFORMATION

A charity registered in England and Wales, no.1123613 A company limited by Guarantee, registered in England and Wales no. 6220240

President

Her Royal Highness The Princess Royal

Vice Presidents

Esben Poulsson Grahaeme Henderson

Trustees

Thomas Boardley - Chairman [*GN]
Rosemary Alexander(to 7 July 2023) [*A] [I]
The Ven Christopher Burke - Vice Chairman (to 30 January 2023) [GN]
Gary Chapman (from 30 January 2023) [*A]
Robert Ferris OBE [A] [G]
Alexandra Harwood (from 27 April 2023) [A] [I]
William MacLachlan
 [GN] [R]
David Moorhouse CBE - Vice Chairman(to 30 January 2023) [GN]
The Ven Michael Power (from 30 January 2023)
Neale Rodrigues MM - Vice Chairman (to 30 January 2023) [R] [GN]
Timothy Smith (from January 2022)
Claire Sneddon [G] [R]
Sam Swire [*G]
The Very Revd Andrew Tremlett [*R] [GN]
Peter Cottrell [*I] [GN]
The Right Revd David Williams – Vice Chairman [G] [GN]

Company Secretary

Jayne Rose (to 30 November 2022) Dorothy Osarenren (from 30 January 2023)

Key Management Personnel

Secretary General

Secretary General
The Revd Canon Andrew Wright [G] [GN]
Chief Operating Officer
Tomilayo Toluhi [G]
Director of Programme
Ben Bailey
Director of Development
Jan Webber
Director of Finance
Eileen Reilly [I]

Committees

*Denotes the Chair of the relevant Committee

G. Grants and Programmes Committee (Formerly Grants Committee) GN. Governance and Nominations Committee

R. Remuneration Committee

Helen Averill (External) I. Investment Committee Jim Aiken (External) Paul Jeffries (External)

I. Investment Committee

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 CHARITY INFORMATION

A. Audit and Risk Committee

Rachel Lawton (External)

Custodian Trustee

The Mission to Seafarers Trust Corporation Ltd acts as a custodian trustee on behalf of The Mission to Seafarers holding real estate property and investments.

Joint Corporate Trustee

The Mission to Seafarers is a joint corporate trustee of;

Registered Office

First Floor, 6 Bath Place, Rivington Street, London EC2A 3JE

External Advisers

Auditors

Price Bailey LLP, 3rd Floor, 24 Old Bond St, Mayfair, London W1S 4AP

Bankers

HSBC Plc, 20 Eastcheap, London, United Kingdom, EC3M 1ED

Investment Advisers

CCLA, Senator House, 85 Queen Victoria Street, London, EC4V 4ET

Solicitors

Blake Morgan LLP, New Kings Court, Tollgate, Chandler’s Ford, Eastleigh, United Kingdom, SO53 3LG

HFW, Friary Court, 65 Crutched Friars, London, EC3N 2AE

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 GOVERNANCE, STRUCTURE AND MANAGEMENT

The Mission to Seafarers; the charity

The Mission is a charity, constituted as a company limited by guarantee and not having share capital. The Mission is governed by a Board of Trustees (the Board) which forms the Board of Directors. Members of the Board are both Trustees of the charity and directors of the company, as constituted by the Mission’s Articles of Association . The current Articles of Association are dated 19 August 2022.

The charity’s Trustees and management

The Board is drawn from prominent leaders with wide experience of seafaring life, including the shipping industry and from London’s financial centre, the City of London. The Mission also invites leading members of the clergy to serve as Trustees. The procedure for the election and appointment of Trustees is set out in the Articles of Association of The Mission to Seafarers . Trustees and management regularly review the skills and experience of the current members of the Board to try to identify new candidates who might strengthen particular areas.

Following an External Governance Review in 2022, the normal period a trustee can serve was changed from two terms of four years each to three terms of three years each. In exceptional circumstances, this can be extended to four terms, with annual re-election during the last term. The maximum period a trustee can serve is twelve years. The Board requires a quorum of five Trustees and normally meets four times a year. It is the governing council of the organisation.

Newly appointed Trustees are given an induction which provides them with information on the work of the organisation and highlights their responsibilities as a trustee. Some Trustees may also undergo specific training courses as required for their roles. Trustees are also required to sign a Code of Conduct and complete a Register of Interests on appointment and annually thereafter.

The Board has five permanent sub-committees:

Each of the above committees is made up of Trustees and members of the executive staff. Where appropriate, the Board may co-opt independent and professional expertise from external sources, for the benefit of a committee's work.

The day to day management of the charity is delegated to the Secretary General who reports to the Board and leads the Senior Management Team. The Secretary General also directly manages the Regional Directors for Europe, East Asia, Middle East and South Asia (formerly South Asia & the Gulf) and Latin America.

The Mission to Seafarers’ International Headquarters takes a leading role in designing and rolling out processes to improve unity, protect the “brand”, deliver global projects and agree strategic objectives for the Mission to Seafarers’ global family. In addition, it provides a support function for the regions by disseminating information, conducting research, providing fundraising, brand and marketing services, and managing publications and digital media, including websites.

The Secretary General – amongst other duties – provides the spiritual leadership for the Ministry teams which support seafarers in need around the world. The Mission is entirely funded by voluntary donations and relies on the deep generosity of loyal supporters.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 GOVERNANCE, STRUCTURE AND MANAGEMENT

Delivery structure of direct Mission activities

- Regional network

The Mission to Seafarers’ regional network is made up of nine regions:

As stated above the Regional Directors of four of these regions, Europe, East Asia, Middle East & South Asia and Latin America, are directly managed by the Secretary General and so are responsible to the Mission Trustees. The remaining five are made up of independent Mission charities with their own governing councils (except for the USA, where size does not justify one). They work closely with the Mission and co-operate on matters of welfare provision and communications. They are responsible for their own financial affairs and statements. These independent regions provide a dynamic and responsive welfare service for seafarers, working in partnership with the four Mission regions. In 2022 the Mission continued to provide grant-funding to all independent regions to support regional development.

Through the regional network, the Mission was able to give support and advice at around 150 ports through the independently run Mission to Seafarers’ charities and organisations as part of the global Mission family. Parttime honorary chaplains appointed by the Mission also provided support for seafarers and were a point of contact for emergencies. The role of the honorary chaplain varies with the port and country in which the chaplain is located, but it is a key voluntary support system, which taps into local maritime knowledge and skills.

– Global network

The Mission to Seafarers welfare services to seafarers in the regions detailed above were provided through directly salaried, or grant-funded, port-based chaplaincy and/or ship visitor teams in the following areas, with ‘memoranda of understanding’ in place at all key locations:

Port/Area
Directly
Employed By
The Mission
Grant Funded And
Directly Managed By
The Mission
Grant Funded, Managed
By Independent
Organisations/Regions		 Port/Area
Directly
Employed By
The Mission
Grant Funded And
Directly Managed By
The Mission
Grant Funded, Managed
By Independent
Organisations/Regions
Antwerp, Belgium �
Aqaba, Jordan �

Bahrain Port		 �
Baltimore, USA �
Bangkok, Thailand �
Belfast, N Ireland �
Buenos Aires, Argentina �
Busan, South Korea �
Cape Town, SA �
Costa Rica �
Colombo, Sri Lanka �
Dubai, United Arab Emirates �
Felixstowe, UK �
Hong Kong, China �
Humber, UK �
Israel �
Izmir, Turkey �
JNPT, India �
Liberia �
Limassol, Cyprus �

Lyttelton, New Zealand		 �
Mombasa, Kenya �

Nelson, New Zealand		 �
Panama �
Port Elizabeth �
Port Talbot & Milford Haven, UK �

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 GOVERNANCE, STRUCTURE AND MANAGEMENT

Richards Bay,SA �
Rotterdam, The Netherlands �
Rouen, France �
Said & Suez Ports, Egypt �

Scottish Ports, UK		 �
Seattle, USA �
Southampton, UK �
South Wales Ports, UK �
Suape, Brazil �
Tilbury, UK �

Tuticorin, India		 �
Yangon, Myanmar �

Yokohama & Tokyo, Japan		 �

- Branches

In addition to, and in conjunction with chaplaincy services, charitable activities were carried out by the Mission’s 15 (2021: 14) branches, the majority of which provide centre-based facilities. They are directly controlled by the Mission through local employees and the excellent and committed work of local volunteer committees, governed by Branch Constitutions. The branches employ 10 (2021: 8) staff paid from IHQ and 16 (2021: 8) staff employed locally, excluding their six chaplains who are included in the table above. Their financial results are consolidated into the Financial Statements set out on pages 28 to 31 of this report and they operate in the following locations;

Aqaba, Jordan Belfast, UK Dubai, United Arab Emirates, UK Falmouth, UK Fowey, UK Humber Ports, UK Newport, UK Panama, Latin America Manila, Philippines Port Talbot, UK South Shields, UK South Wales ports, (Welsh Council), UK Tees (North), UK Tees (South), UK Bangkok, Thailand

- The Mission group

The Mission to Seafarers’ group includes the following companies, which are classified as subsidiaries. Their financial results are consolidated into these accounts and they are wholly controlled by the Mission;

The subsidiaries employ no staff (2021: 4 staff were employed until November 2021 when the operations in Dunkirk ceased). Please see Note 2 for further information about the above subsidiaries and their 2022 results.

- Ecumenical

Many of the global family of charities, seafarers’ centres and organisations work in partnership through local ecumenical networks, and in some cases co-owned property, via their membership of ICMA. In the UK, the Mission participated in Ecumenical centres where it was a joint trustee and directly involved in their management until 30 June 2022 when those centres were transferred to a new maritime charity. Further information is provided in note 23.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 GOVERNANCE, STRUCTURE AND MANAGEMENT

Remuneration

We recognise that we are accountable to our donors, supporters and beneficiaries and we are committed to ensuring maximum value in the use of resources. We also take our duty to provide a high quality and effective service very seriously. It is dependent upon our ability to attract and retain suitably qualified employees with the right knowledge, skills and experience.

The Remuneration Committee, which consists of three Trustees and one external member, has delegated responsibility from the Board to provide governance oversight on the principles and policies for setting pay and benefits within the charity. The Committee conducts an annual salary review based on forecast charity pay awards which are linked to the Retail Price Index (RPI) and the Consumer Prices Index (CPI). Any inflationary awards or salary adjustments are subject to affordability.

Job descriptions are evaluated based on The Mission to Seafarers’ Job Factor Framework, which consists of seven agreed organisation-wide criteria, to establish the grade of the role based on the job size, complexity and level of responsibility. The salaries of chaplaincy staff employed from IHQ are set with reference to the Church of England National Stipend Benchmark and chaplaincy roles in other sectors.

Lay staff salaries within the UK are benchmarked against the Croner Charity Rewards annual survey. Locally employed chaplains and lay staff are paid a fair wage based on local levels. The Remuneration Committee has adopted a policy of paying median salaries compared to charities of a similar size and nature, to ensure competitiveness. The Committee approved a policy of paying all staff above the Real Living Wage which was implemented from 2015. The Committee is also responsible for setting the salary of the Secretary General. Accordingly, the Trustees consider that the remuneration policy of the charity is fair and transparent.

Public Benefit

The activities, achievements and plans relating to the Mission’s work are detailed in pages 2 to 16 of this report and the Trustees confirm that they are carried out, in line with its charitable object and objectives, for the benefit of the public. They further confirm that the impact of our work on service users is a key criterion when deciding what activities to undertake and how best to achieve our mission. The Mission to Seafarers’ Trustees therefore confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity.

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THE MISSION TO SEAFARERS TRUSTEES, ANNUAL REPORT AND ACCOUNTS 2022 STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees {who are al￿ dhrectors of The Mission to seafare￿ for the purwses of company law} a responsible for preparing the Trustees. Annual Report ineluding the Strategic Report} and the financial Statements in accordance wrth applicable law and Unrted Kingdom Accounting Standards Iuniled Kingdom Generally Accepted Accounting Practice). Company law reqUI￿S the Trustees to prepare financial statements for each financsal year. Under that law the directors have elected to prepare the financral statements in accordance with United Kingdom Generally Accepted Accounting PraCt￿e (Unrted Kingdom Accountsng Standards and applicable lawl. Under company law the directors must not approve the financial slalemenls unless they are satisfied that they give a tiue and fair view of the stale of affairs of the charrtable company and of the inC￿nIng resources and application of resour￿$. Including the Income alld expenditure. of the Charitab￿ company for that period. In Pfeparing these financ￿1 statements, the Trustees are required to: select suitable accounting policies and then appty them ￿SiStent￿. observe the methods and pnnciples in the Charities SORP FRS102120191,' make judgements and accounting estimates th* are reasonable and prudent.. state whether applicable UK Accounting Standards have been followed. subject to any material departures disdosed and explained in the financial statements". p￿pare the financial statements on the 90in9 cOn￿M basis unless it is inappropriate to presume that Ihe chantable cc4mpany will continue in c¢)eTalion. The Trustees are responsible for keeping adequate accounting records thal are suffiu'ent lo show and explain the charitable company s transaclior15 and disdose wrth ￿8$Onable accuracy at any time the Iinancial p05rtion of the groLSP and chantable ccrfnpany and enable them lo ensure that the financial statements comply wrth the Companies Act 20(￿. They are also Tesponsible for saleguarding the assets of the charrtable company and hence for taking reasonable steps for the prevention and detection of fraud 8nd other iffegularitses. The Trustees are responsib￿ for the maintenance and integTty of the corporate and financial infoTrn81ion included on the charitable company 5 websrte. Legis￿￿ In the Unrted Kingdom goveming the preparation and dissemination of financk41 slatements may differ from legislati)n in other jurisdictions. In so far as the Tru51ees are ware. there is no relevant audrt inf0m￿lon of which the charrtable company's auditor is unaware.. and the Trustees have taken all steps that they ought lo have tsken to make themselves aware of any relevant audrt inlomialion and lo eslablish that the auditor is aware of that infomiation. 2023 and signed on its behaw by". Approved and aulhorised for issue by the 8oard on Thomas 8oardley Chairman of the Board Gary Chapman Chairman Audit and Risk Committee 21 S8Pt8mber 2023 I, -w JA25 23

THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MISSION TO SEAFARERS

Opinion

We have audited the financial statements of The Mission to Seafarers (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise of the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheet, the Group Cash Flow Statement and notes to the financial statements, including 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:

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 responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Trustees annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MISSION TO SEAFARERS

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and report in accordance with those Acts

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We gained an understanding of the legal and regulatory framework applicable to the Charitable Group and the sector in which it operates and considered the risk of the Charitable Group not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements, including financial reporting, and tax legislation. In relation to the operations of the Charitable Group this included compliance with the Charities Act and SORP 2019, GDPR, employment law, safeguarding and health & safety.

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

Reviewing minutes of Board meetings, reviewing any correspondence with the Charity Commission, agreeing the financial statement disclosures to underlying supporting documentation, enquiries of management and

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MISSION TO SEAFARERS

officers of the Charitable Group and a review of the risk management processes and procedures in place. We have also reviewed the procedures in place for the reporting of any incidents to the Trustee Board including serious incident reporting of these matters as necessary with the Charity Commission.

Management override: To address the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness. We reviewed systems and procedures to identify potential areas of management override risk.

We also assessed management bias in relation to the accounting policies adopted and in determining significant accounting estimates, including treatment of legacies and grant income, and the valuation of investments.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-ofthe-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report..

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

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

Helena Wilkinson BSc FCA DChA (Senior Statutory Auditor)

For and on behalf of

Price Bailey LLP Chartered Accountants Statutory Auditors

3rd Floor, 24 Old Bond St, Mayfair, London W1S 4AP

Date: 22 September 2023

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING A CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT AT 31 DECEMBER 2022

Notes
Income:
Donations and legacies
3
Charitable activities
(Provision of services to
seafarers)
4
Other trading activities
(Commercial Trading)
5
Investments
6
Other
7
Total income
Expenditure:
Raising Funds
(commercial trading and
Fund raising activities)
Charitable activities
(Provision of services to
seafarers)
Total
Expenditure
8
Net (expenditure)/income
from operational
activities for the year
Net (losses)/gains on
investments
Net (expenditure)/income
for the year
Transfers between funds
20
Other recognised
(losses)
Foreign Exchange
gains/(losses)
Net Movement in Funds
Reconciliation of Funds
Total funds brought forward
Total Funds Carried
Forward
21		 Unrestricted
Funds
£’000
3,034
204
260
871
33
4,402
917
4,183
5,100
(698)
(3,509)
(4,207)
35
95
(4,077)
42,934		 Unrestricted
Funds
£’000
3,034
204
260
871
33
4,402
917
4,183
5,100
(698)
(3,509)
(4,207)
35
95
(4,077)
42,934		 Restricted
Funds
£’000
543
-
-
-
-
543
-
597
597
(54)
-
(54)
(35)
-
(89)
922
833		 Total
2022
£’000
Unrestricted
Funds
£’000
3,577
6,663
204
327
260
239
871
712
33
81
4,945
8,022
917
802
4,780
3,493
5,697
4,295
(752)
3,727
(3,509)
3,383
(4,261)
7,110
-
35
95
(36)
(4,166)
7,109
43,856
35,825
39,690
42,934		 Total
2022
£’000
Unrestricted
Funds
£’000
3,577
6,663
204
327
260
239
871
712
33
81
4,945
8,022
917
802
4,780
3,493
5,697
4,295
(752)
3,727
(3,509)
3,383
(4,261)
7,110
-
35
95
(36)
(4,166)
7,109
43,856
35,825
39,690
42,934

Restricted
Funds
£’000
585
-
-
-
-
585
-
762
762
(177)
-
(177)
(35)
-
(212)
1,134		 Restricted
Funds
£’000
585
-
-
-
-
585
-
762
762
(177)
-
(177)
(35)
-
(212)
1,134		 Total
2021
£’000
7,248
327
239
712
81
8,607
802
4,255
5,057
3,550
3,383
6,933
-
(36)
6,897
36,959
43,856
4,402 8,022
917
4,183
5,100
(698)
(3,509)
(4,207)
35
95
(4,077)
42,934		 802
3,493
4,295
3,727
3,383
7,110
35
(36)
7,109
35,825
(212)
1,134
38,857 42,934 922

All activities are continuing except for the Dunkirk War Memorial Trust which ceased operations in France on 30 November 2021 (see Note 2.1). Notes 1 to 29 form part of these Financial Statements.

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THE MISSION TO SEAFARERS TRUSTEES. ANNUAL REPORT AND ACCOUNTS 2022 CONSOUDATED BALANCE SHEET AT 31 DECEklBER 2022 Company Number 6220240 Notes Unrestricted Funds Restricted Funds £'ooo Total 2022 £'ooo 109 Total 2021 Intsngible Fixed Assets Fixed Assets Tangible assets Investments 16 23 94 16 17 4,027 26.541 428 4.311 29,849 26.S41 Total fixed assets 30.591 514 31.105 34,254 Current A¥sets st￿ks Debtors Investments- short temi deposits Cash al bank and in hand 18 908 7.477 18 74 830 7,199 1,936 18 7.477 1,263 319 Total current assets 9.347 319 9.666 9,979 LiabS1itles Cfeditors falling due within one year 19 1.081 1.081 361 Net current assets 319 8.$86 9,618 Net assets excluding pension Ilabllity Multi4mployer defined benefit 15 deficit funding provision 38.857 833 39.690 43,872 16 Totsl net assets 38.857 833 39.690 43,856 Charity Funds Unrestricted general Unrestricted designated Restricied income funds 21 21 20 23.086 15.771 23,086 15,771 833 26,339 16.595 922 833 Total Charity Fund5 38.857 833 39,690 43,856 Approved and authorised for issue by the Board on 2023. SwJned on its behalf by.. Thoma oardley Chairnian of the Board 14LknL3 Gary Chapman 21 Septernber 2023 Chairnian Audit and Risk Gomrnittee Notes 110 29 fonn part of these Financial Statements. 28

THE MISSION TO SEAFARERS TRUSTEES, ANNUAL REPORT AND ACCOUNTS 2022 COMPANY BALANCE SHEET AT 31 DECEMBER 2022 Company Number6220240 Notes Unrnstri¢ted Funds Restrict Funds £'ooo Total 2022 £'ooo 109 Total 2021 £'ooo Intangible Fixed Assets Fixed Assets Tangible assets Investments 16 23 16 17 4,027 26.441 428 4,455 26,441 4.311 29, T35 Totsl fixed assets 30,491 514 31,005 34.140 Current Assets Slocks Debtors Investments- short term deposits Cash al bank and in har 17 17 13 18 1.109 7,477 706 1,109 7.477 1.02S 1,198 7,199 7.509 319 Total current assets 9.309 319 9.628 9.919 Llabillties Creditor5 falling due within one year 19 1.083 1.083 330 Net current assets 8.226 319 9,589 Net assets excluding penslon liability Multiryernployer defined benefrt deficit funding provisio 38.717 833 39,550 43. T29 t6 Total net assets 38.717 833 39,550 43,713 Charlty Funds Unreslricled general 23.086 23.086 26,339 Unreslricled designated Reslricted income fund$ 15.631 15,631 833 76.452 922 20 833 Total Charity Funds 38,717 833 39,550 43,713 Approved and aulhorised for issue by the Board on 2023. Signed on its behalf by: Thomas Boardley Chainnan of the Board Gary Chapman 21 S8Ptemb8r 2023 Chaiman Audll and Rlsk Commlttee 2('4L &LS Note$ 1 to 29 form part of these Financial SL￿ernents.

THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 CONSOLIDATED STATEMENT OF CASH FLOWS AT 31 DECEMBER 2022 Company Number 6220240

Notes
Cash flows from operating activities:
Net cash (used in)/provided by operating activities
25
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from the sale of assets
Purchase of assets
Purchase of investments
Proceeds from sale of investments
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
Change in cash and cash equivalents due to exchange rate
movements
Cash and cash equivalents at the end of the reporting period		 2022
£’000
(933)
871
25
(250)
(215)
12
443
(490)
9,135
95
8,740		 2021
£’000
2,580
712
477
(133)
(3,257)
-
(2,201)
379
8,792
(36)
9,135

Notes 1 to 29 form part of these Financial Statements.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES

The Mission to Seafarers (the Mission) a company limited by guarantee (No. 6220240) and a charity (No. 1123613) both registered in England and Wales. The registered address is First Floor, 6 Bath Place, Rivington Street, London EC2A 3JE.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the Financial Statements are shown below and the presentational currency of the financial statements is Sterling.

1.1 Basis of preparation

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 (FRS102) (effective 1 January 2019) - (SORP (FRS102)) and the Companies Act 2006 .

The Mission to Seafarers meets the definition of a public benefit entity under FRS102. The Financial Statements have been prepared in sterling and rounded to the nearest thousand pounds under the historical cost convention (modified to present investments at market value) and in accordance with applicable UK accounting standards.

1.2 Going concern

At the balance sheet date the Trustees consider that there are no material uncertainties about the Mission’s ability to continue as a going concern. The most significant areas of adjustment and key assumptions that affect items in the accounts are to do with estimating legacy income. With regard to 2023, the most significant areas of uncertainty for the Mission are the level of donation income which needs to be raised each and every year, especially as the impact of COVID-19 is ongoing and the level of the fine to be imposed following the sentencing hearing scheduled for 24 November 2023 (see Note 29 Provision). However, the Trustees feel that the level of reserves provides resilience and that, together with the current amount of cash in hand plus plans to closely monitor and review budgets, there are no material uncertainties that the Mission can continue as a going concern.

1.3 Group Financial Statements

The Financial Statements consolidate the results of the charity and its wholly owned subsidiaries detailed in note 2 on a line-by-line basis and by eliminating intra-group transactions. No separate Statement of Financial Activities has been presented for the Company alone, as permitted by section 408 of the Companies Act 2006 . A summary company ‘Statement of Financial Activities’ (SoFA) can be found at note 28. The Company’s Balance Sheet on page 29 includes the assets and liabilities of the branches detailed on page 21.

1.4 Fund accounting

Unrestricted funds are available to spend on activities that further any of the charitable objectives of the Mission.

Designated funds are unrestricted funds which the Trustees have decided at their discretion to set aside to use for specific purposes. The aim and purpose of each designated fund is set out in note 21.

Restricted Funds represent capital grants received together with donations for specific purposes. Restricted funds may only be used to fulfil the donor’s restriction which must also further the charitable activities of the Mission. Details of restricted funds are set out in note 20. Transfers to unrestricted funds represent the release for the year of these grants or donations. For capital grants, a transfer is made to unrestricted funds over the estimated useful lives of the assets to which they relate, matching depreciation charged to the unrestricted funds.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

1.5 Income

The value of all income is recorded in the Statement of Financial Activities (SoFA) as soon as the Mission is legally entitled to the income, it is probable that the income will be received and the amount can be quantified with reasonable accuracy. Where income has related expenditure, the income and expenditure are reported gross in the SoFA.

Donations, grants and gifts are recognised when receivable. In the event that a donation is subject to fulfilling performance conditions before the Mission is entitled to the funds, the income is deferred and not recognised until it is probable that those conditions will be fulfilled in the reporting period. Income from Gift Aid tax reclaims is recognised for any donations with relevant Gift Aid certificates recognised in income for the year. Any amounts of Gift Aid not received by the year end are accounted for in income and accrued in debtors.

Legacies are recognised at the earlier of actual receipt or on receipt of Estate accounts which confirm the Mission’s entitlement to receive the gifts, the probability of receipt and provide an accurate measure of the legacy. If the legacy is in the form of an asset other than cash or an asset listed on a recognised stock exchange, recognition is subject to the value of the asset being able to be reliably measured and title to the asset has passed to the Mission.

The Mission maintains a legacy pipeline system which, in addition to accrued legacies, includes further estimated legacies of which the Mission is aware but which do not meet the above criteria and are therefore not included within these accounts. The estimated value of those legacies in the pipeline is £1,000 (2021: £23,000). Event income received in advance for a future fundraising event or a grant received relating to the following year are deferred until the criteria for income recognition are met.

Interest on deposit funds and dividends on investments are recognised when the amounts can be measured reliably which is normally upon notification of the amount paid or payable by the bank or when the dividend yield has been notified by our investment advisors.

Sponsorship from events, fundraising and events registration fees are recognised in income when the event takes place.

Trading income, including primary purpose sales to seafarers, is recognised at the point of sale.

1.6 Expenditure and irrecoverable VAT

Expenditure is accounted for on an accruals basis and is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Operating lease costs are charged on a straight line basis over the lease term.

Irrecoverable VAT is charged to support costs which are then reallocated to the headings on the SoFA. See note 8 for a further analysis of expenditure.

Charitable expenditure comprises expenditure directly relating to the objects of The Mission to Seafarers.

It includes:

Support costs such as irrecoverable VAT, depreciation and governance costs (including secretarial and administrative support from the Mission’s International Headquarters) are allocated to Charitable Activities and Costs of Raising Funds on the basis of head count at International Headquarters. (See note 9)

Governance costs comprise amounts related to constitutional and statutory requirements and include Staff costs, audit fees, professional fees and Trustees’ expenses.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

1.7 Donated services

Donated services or facilities are recognised when the Mission has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefit can be measured reliably.

1.8 Volunteers

Volunteers make a valuable contribution to the charitable activities of the charity. With approximately 200 volunteers working in centres, transporting seafarers and ship visiting, they complement and enhance the work of our chaplains and staff in serving seafarers. No financial value is included in these accounts as it is impossible to measure but their priceless contribution to the Mission is further referred to throughout in the Trustees’ Annual Report and Accounts and specifically in ‘Our Mission’ on page 2.

1.9 Fixed assets

Intangible fixed assets are non-monetary assets which will be amortised on a straight-line basis over the useful life of the asset.

Intangible and Tangible fixed assets are stated in the Balance Sheet at historical cost less amortisation/depreciation. Assets with a cost of less than £1,000 are written off in the year of purchase.

Depreciation is provided on a straight line basis over the anticipated useful life of fixed assets as follows:

The Trustees have carried out and will continue to carry out annual reviews of impairment for land and property. An asset will be considered impaired if the deemed value in use or the net realisable value is lower than the carrying value. Its carrying value will be written down to the deemed impaired value. For impaired assets, evidence of increased value up to a maximum of the historic cost will be recognised in the accounts.

1.10 Revaluation of tangible fixed assets

The Mission has not adopted the revaluation model for freehold property and those assets are recognised at the lower of their historical cost or impaired value.

1.11 Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the bid-market rate, as reported by the investment managers. The Trustees confirm that the difference in the value of investments between their valuation policy and the closing market valuation required by SORP (FRS102) is immaterial. Net gains and losses on revaluation and disposals throughout the year are shown in the SoFA.

The Mission does not acquire put options, derivatives or other complex instruments.

All gains and losses are taken to the SoFA as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the 1 January. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the SoFA.

The main form of financial risk faced by the Mission is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and within particular sectors or sub sectors.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

1.12 Stocks

Stocks are valued at the lower of cost and net realisable value.

1.13 Debtors

Debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.

1.14 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.15 Creditors

Creditors are recognised where the Mission has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

1.16 Concessionary loan

The Mission has taken advantage of section 34 of FRS (102) to recognise the loans to its trading subsidiaries as concessionary loans as the subsidiaries and the Mission form a public benefit entity group. The loans are recognised and measured at the amount paid. The carrying amount will be adjusted to reflect any repayments or any accrued interest and adjusted if necessary for any impairment. Note 18 details all concessionary loans.

1.17 Financial instruments

The Mission only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Fixed assets are recorded at depreciated historical cost and investments are recorded at fair value, being the closing bid price. All other assets and liabilities are recorded at cost which is their fair value. Investments are also recorded at fair value and note 17 details all unrealised gains and losses.

1.18 Pension costs

All employees are entitled to join a pension scheme. The Mission to Seafarers makes contributions to defined benefit and defined contribution ‘money purchase’ schemes. The defined benefit schemes are two Church of England multi-employer pension schemes and, other than the deficit funding, the pension schemes are accounted for as defined contribution schemes in accordance with FRS102. They are now only open to ordained chaplains. Although it is not possible to separately identify the assets and liabilities of the schemes attributable to the Mission a recovery plan with agreed deficit recovery payments has been put in place. Details of the Mission’s liability for both schemes of £Nil (2021: £16,000) are given in note 15.

The money purchase plan is managed by Royal London (formerly Scottish Life) and the plan invests the contributions made by the employee and employer in an investment fund to build up over the term of the plan. The fund is then converted into a pension upon the employee’s chosen retirement age. The Mission has no liability beyond making its contributions and the deductions for the employee’s contributions.

Following the implementation of The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010, The Mission commenced auto-enrolment from 1 March 2015, deferred to 1 June 2015 using NOW. However, following the April 2019 increase of the employee’s minimum contribution to 5%, this scheme was closed and staff were eligible to join the Royal London scheme.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

1.19 Foreign currency translation

With the exception of investments, transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Foreign currency investment transactions are recorded at an average rate. For overseas branches and subsidiaries, income and expenditure is recorded at an average rate for the year. Monetary assets and liabilities are shown in the balance sheet at the sterling rate ruling at the balance sheet date.

Exchange gains and losses are recognised in the Statement of Financial Activities.

1.20 Taxation

The Mission to Seafarers is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Mission is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 , to the extent that such income or gains are applied exclusively to charitable purposes.

1.21 Judgements and key sources of estimation uncertainty

No judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies.

The Trustees make estimates and assumptions concerning the future based on their knowledge of the Mission and the environment in which it operates. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual outcome.

2. SUBSIDIARY AND CONNECTED UNDERTAKINGS

See note 17.2 for Investments in subsidiaries.

2.1 The Dunkirk War Memorial Trust Ltd Company No. 185130, Charity No. 236806

The Dunkirk War Memorial Trust Limited (DWMT) was set up in 1922 as a charity to provide premises and facilities for the use of seafarers within the port of Dunkirk, France. DWMT is effectively controlled by virtue of the directors being former Trustees or are senior employees of The Mission to Seafarers. On 30 November 2021 operations in Dunkirk were closed as they were no longer economically viable.

Donations
Other trading
Investment Income
Charitable activities
Other income
Total Income
Raising funds
Charitable activities
Total Expenditure
Net income/(expenditure)
Net gain/(loss) on investments
Foreign exchange gain/(loss)
Net Loss Retained in Subsidiary		 2022
£’000
-
-
4
-
7
11
-
(10)
(10)
1
(13)
2
(10)		 2021
£’000
51
-
3
102
69
225
(3)
(246)
(249)
(24)
14
(16)
(26)

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

2.2 Flying Angel Marketing Enterprises Ltd (FAME) Company No. 00933115

The Mission to Seafarers owns the whole of the issued share capital of FAME. One trustee and a current director of the Mission sit on the board of FAME but receive no remuneration for doing so. FAME is a retailer and distributor of Christmas cards and novelties and is party to any commercial agreement that is not considered a charitable activity of The Mission to Seafarers. Any taxable profit from trading is gifted to The Mission to Seafarers.

Turnover
Cost of Sales
Gross Profit
Administration
Donation to The Mission to Seafarers
Net Gain Retained in Subsidiary		 2022
£’000
2
-
2
(2)
-
-		 2021
£’000
2
-
2
(2)
-

2.3 The Flying Angel Belfast Ltd Company No. NI605252

The Flying Angel Belfast Ltd was set up to operate catering services in The Mission to Seafarers’ Belfast premises. All the shares in this company are owned by The Mission to Seafarers. Any taxable profit is gifted to The Mission to Seafarers.

Turnover
Cost of sales
Gross Profit
Administration
Donation to The Mission to Seafarers
Net Gain Retained in Subsidiary		 2022
£’000
9
(3)
6
(6)
-
-		 2021
£’000
4
(3)
1
(1)
-
-

2.4 The Mission to Seafarers Scotland Ltd Company No. SC389483, Charity No. SCO41938

The Mission to Seafarers Scotland Ltd was set up as a company limited by guarantee and a registered charity in Scotland to raise funds and deliver services to seafarers and their families in Scotland. The Mission to Seafarers is the sole member

Donations
Charitable activities
Other trading
Total Income
Raising Funds
Charitable activities
Total Expenditure
Net Gain Retained in Subsidiary		 2022
£’000
90
16
3
109
(3)
(99)
(102)
7		 2021
£’000
134
24
-
158
(1)
(153)
(154)
4

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

2.5 The Mission to Seafarers Trust Corporation Ltd (MTSTC) Company No. 38498

MTSTC holds real property and investments as custodian trustee on behalf of The Mission to Seafarers. It has no transactions on its own account. All the shares are owned by the Mission.

3. DONATIONS AND LEGACY INCOME

Unrestricted
Funds
£’000
Restricted
Funds
£’000
General donations
1,560
120
Legacies
1,067
-
General grants
337
423
Vote 4_(Pension note 15)_
70
-
Total
3,034
543		 Unrestricted
Funds
£’000
Restricted
Funds
£’000
General donations
1,560
120
Legacies
1,067
-
General grants
337
423
Vote 4_(Pension note 15)_
70
-
Total
3,034
543		 2022
£’000
Total
1,680
1,067
760
70
3,577		 Unrestricted
Funds
£’000
Restricted
Funds
£’000
1,462
8
4,728
-
382
577
91
-
6,663
585		 2021
£’000
Total
1,470
4,728
959
91
543 7,248

4. CHARITABLE ACTIVITIES INCOME

Provision of services to seafarers
Total		 2022
£’000
204
204		 2021
£’000
327
327

There was no restricted charitable activity income in 2022 or 2021.

5. TRADING ACTIVITIES INCOME

Trading activities
Fundraising events
Property rental
Total		 2022
£’000
107
102
51
260		 2021
£’000
105
84
50
239

There was no restricted trading activity income in 2022 or 2021.

Rental Income represents monies received from properties held as fixed assets that are not fully occupied for The Mission to Seafarers’ own activities and are let out in furtherance of our charitable activities or because they are temporarily surplus to operational requirements.

6. INVESTMENT INCOME

Listed investments:
Dividends – equities
Bank deposit interest
Total		 2022
£’000
796
75
871		 2021
£’000
709
3
712

There was no restricted investment income in 2022 or 2021. Income from unlisted investments is shown gross, including tax reclaimable.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

7. OTHER INCOME

Surplus on disposal of properties
Surplus on disposal of other assets
Other
Total		 2022
£’000
18
7
8
33		 2021
£’000
63
17
1
81

There was no restricted other income in 2022 or 2021.

8. ANALYSIS OF EXPENDITURE

Raising Funds:
Appeals and events
Commercial trading; sale of
Christmas cards and catering
Promotional materials and media
Total Raising Funds
Charitable activities:
Port based welfare services
Ship visiting and ministry to
seafarers
Transport for seafarers and
ship visiting
Branch and centre operations
Grants to support ministry
around the world (see note 10)
_the Sea_publication for
seafarers
Advocacy, welfare and
emergency response
Digital welfare and support
Programmes for the wellbeing
of seafarers and their families
Total Charitable Activities
TOTAL EXPENDITURE		 Direct
Costs
£’000
556
7
62
625
1,219
112
1,061
781
11
478
107
277
4,046
4,671		 Support
£’000
262
2
28
292
228
19
192
149
2
82
20
42
734
1,026		 Total
2022
£’000
818
9
90
917
1,447
131
1,253
930
13
560
127
319
4,780
5,697		 Direct
Costs
£’000
494
6
59
559
1,181
182
760
972
13
289
133
112
3,642
4,201		 Support
£’000
217
1
25
243
205
27
119
175
2
39
25
21
613
856		 Total
2021
£’000
711
7
84
802
1,386
209
879
1,147
15
328
158
133
4,255
5,057

Analysis by department 2022:

Staff Costs (note 11)
All other costs
Total
expenditure		 Advocacy/
Ministry
£’000
410
306
716		 Comms
£’000
61
131
192		 Regions
£’000
1,148
1,990
3,138		 Fund
Raising
£’000
391
234
625		 Support
£’000
565
461
1,026		 Total
2022
£’000
2,575
3,122
5,697

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

Analysis by department 2021:

Staff Costs (note 11)
All other costs
Total expenditure		 Advocacy/
Ministry
£’000
354
396
750		 Comms
£’000
52
131
183		 Regions
£’000
1,128
1,636
2,764		 Fund
Raising
£’000
325
179
504		 Support
£’000
427
429
856		 Total
2021
£’000
2,286
2,771
5,057

9. ANALYSIS OF SUPPORT COSTS

Support costs not directly attributable to the headings on the Statement of Financial Activities are reallocated on the basis of headcount at the Mission’s International Headquarters as follows;

2022
Basis of
apportionment
Cost of
Charitable
activities
Headcount at
IHQ
Raising
funds
Headcount at
IHQ
Support costs total
2021
Basis of
apportionment
Cost of
Charitable
activities
Headcount at
IHQ
Raising
funds
Headcount at
IHQ
Support costs total		 Management
& admin
£’000
Finance
£’000
357
145
142
59
499
204
Management
& admin
£’000
Finance
£’000
278
178
117
58
395
236		 HR
£’000
91
38		 IT
£’000
54
22
76
IT
£’000
37
16
53		 Property
£’000
28
11
39
Property
£’000
52
22
74		 Governance
£’000
59
20		 2022
Total
£’000
734
292
129 79 1026
HR
£’000
46
20		 Governance
£’000
22
10		 2021
Total
£’000
613
243
856
66 32

Audit fees included in governance costs for the group amount to £36,600 (2021: £24,600) and there were no other fees in respect of non-audit services (2021: none).

Depreciation costs total £93,000 (2021: £44,000). Operating lease payments total £16,600 (buildings £15,700 and other £900), (2021: none).

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

10. MINISTRY AND PROJECT GRANTS

Grant recipient Port/Country 2022 2021
£’000 £’000
The Mission to Seafarers Central Resource Africa region 86 92
Committee, SA
Diocese of Argentina Buenos Aires, Argentina 51 31
The Australian Council of The Mission to Seafarers Australia 87 70
The Mission to Seafarers Geraldton Geraldton, Australia - 11
The Mission to Seafarers Portland Portland, Australia - 5
The Mission to Seafarers Townsville Townsville, Australia 15 17
St Christopher’s Cathedral., Bahrain Bahrain 22 22
Igreja Episcopal Anglicana do Brasi Acu, Brazil 1 -
The Anglican Diocese of Recife Suape, Brazil 18 20
The Mission to Seafarers Canada Canada region 20 20
The Episcopal Church of Costa Rica Costa Rica 2 2
The Diocese of Cyrus and The Gulf Limassol, Cyprus 5 37
Province of Alexandria for the Anglican Church Ports Said & Suez, 6 6
Egypt
Church Mission Society & Episcopal Diocese of Ashdod and Haifa, - 7
Jerusalem Israel
Lighthouse Seamen’s Mission Falklands - 3
Assn Rouennaise Amis Des Marins Rouen, France 6 6
Bombay Diocesan Council JNPT, India - 22
Tuticorin Nazareth Diocesan Trust Tuticorin, India 41 73
The Mission to Seafarers Kobe Yokohama, Japan 22 45
The Mission to Seafarers Kobe Tokyo, Japan 10 45
The Mission to Seafarers Mombasa Mombasa, Kenya 21 15
The Mission to Seafarers Central Resource Liberia - 2
Committee, SA
The Mission to Seafarers Yangon Yangon, Myanmar 5 18
The Mission to Seafarers Walvis Bay Walvis Bay, Namibia - 44
Stichting Zeemanshuis Flying Angel Rotterdam Schiedam, Netherlands 11 15
The Mission to Seafarers Lagos Nigeria 9 -
The Mission to Seafarers Oceania Council Lyttelton, NZ 20 27
The Mission to Seafarers Oceania Council Napier, NZ - 34
The Mission to Seafarers Oceania Council Nelson, NZ 10 10
The Mission to Seafarers Oceania Council Oceania region & 39 39
Wellington, NZ
Homer Foundation Inc Philippines 41 37
The Mission to Seafarers Oceania Council Solomon Islands - 41
The Mission to Seafarers Cape Town Cape Town, South 4 8
Africa
The Mission to Seafarers Durban Durban, South Africa - 18
The Mission to Seafarers Port Elizabeth Port Elizabeth, South 19 -
Africa
The Mission to Seafarers Africa Region Richards Bay, South 42 7
Africa
The Diocese of Busan Busan, South Korea 57 60
The Mission to Seafarers Colombo Colombo, Sri Lanka 20 23
The Diocese in Europe Izmir, Turkey 10 10

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

Church of St John the Evangelist
Izmir, Turkey
Great Yarmouth Seafarers Centre
Great Yarmouth, UK
Queen Victoria Seamans Rest
Tilbury, UK
Bermuda Sailors Home
Bermuda, USA
Baltimore International Seafarers Centre
Baltimore, USA
The Mission to Seafarers Seattle
Seattle, USA
North American Maritime Ministry Association
USA
Total		 4
15
32
11
10
4
5
781		 -
-
10
-
10
7
5
972

The Mission to Seafarers makes grants to maritime organisations whose work will fulfill our charitable objectives. Grants are to support direct maritime ministry, the development of maritime ministry or seafarer welfare projects. Amounts are agreed annually and the terms and amounts will be set out in a Memorandum of Understanding (MoU). Funded organisations are required to report to The Mission to Seafarers annually to ensure that the terms of the MoU have been met.

11. STAFF COSTS

Staff costs 2022:
Wages and salaries
Social security costs
Other pension costs
Other Staff costs
Total
Average head count
Full time equivalent
Staff costs 2021:
Wages and salaries
Social security costs
Other pension costs
Other Staff costs
Total
Average head count
Full time equivalent		 Charitable
Activities
£’000
1,028
118
92
364
1,602
43
37
Charitable
Activities
£’000
1,057
131
106
224
1,518
38
31		 Raising
Funds
£’000
293
34
19
62
408
7
7
Raising
Funds
£’000
273
31
19
18
341
6
6		 Support
£’000
376
38
24
127
565
8
7
Support
£’000
308
35
22
62
427
9
9		 Total
2022
£’000
1,697
190
135
553
2,575
57
51
Total
2021
£’000
1,638
197
147
304
2,286
53
46

Other staff costs include recruitment, compensation for loss of office, training, welfare of overseas employees, temporary staff and travel related costs. No redundancy costs were made in 2022 (2021: £12,000).

Employees with remuneration (excluding benefits in kind) in excess of £60,000:

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

12. KEY MANAGEMENT PERSONNEL REMUNERATION AND BENEFITS

The 2022 Senior Management Team comprised the Secretary General, the Chief Operating Officer (formerly Director of Human Resources & Administration) the Director of Development, the Director of Finance and the Director of Programme (formerly the Director of Advocacy and Regional Engagement).

The team’s total remuneration and benefits package consisted of salary, pension contributions, health insurance and the tax thereon.

Total salary paid to Senior Management Team
Total of other benefits
Employer social security costs on salary and benefits
Total		 2022
£’000
389
40
52
481		 2021
£’000
370
43
48
461

13. TRANSACTIONS WITH TRUSTEES

No trustee (2021: none) received remuneration during the current year.

During the year £1,734 of expenses (2021: £537) were reimbursed directly to one trustee (2021: four Trustees) and £7,294 (2021: £776) was paid to third parties for subsistence to attend meetings of and on behalf of The Mission to Seafarers and for trustee recruitment, business cards and training. £130 was spent on trustee leaving gifts (2021: £65). The total amount paid was £9,158 (2021: £1,378).

14. RELATED PARTY TRANSACTIONS

During the year payments were made to two related parties (2021:2). £7,500 was paid to ICMA (2021: £7,500) for membership fee where the Secretary General Andrew Wright was a trustee. £4,676 (2021: £5,550) was paid to Trinity House where trustee Neale Rodrigues was a Younger Brother for room hire for an event. There were no other related party transactions and no outstanding balances (2021: none) due at 31 December.

15. PENSIONS

15.1 Multi-employer Defined Benefit Schemes

The Mission to Seafarers participates in two of the Church of England’s Multi-employer Defined Benefits Schemes administered by the Church of England Pensions Board. These are;

The assets of both schemes are held separately from those of The Mission to Seafarers. The Church of England Pensions Board has stated that it is unable to identify the Mission’s share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the schemes.

The Mission to Seafarers has treated these schemes as multi-employer schemes as described in Section 28 of FRS102. This means that contributions are accounted for as if the Schemes were defined contribution schemes. Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends. The legal structure of the scheme is such that if another Responsible Body fails, The Mission to Seafarers could become responsible for paying a share of that Responsible Body’s pension liabilities.

The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in the year, plus any impact of deficit contributions.

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

15.2 CEFPS

A valuation of the CEFPS was carried out as at 31 December 2021 and the results revealed a surplus of assets of £560 million with assets of £2,720 million and a funding target of £2,160 million, assessed using the following assumptions:

Following the 31 December 2018 valuation, a deficit recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) were as follows.

% of pensionable stipends January 2021 to January 2018 to
December 2022 December 2020
Deficit repair contributions 7.1% 11.9%

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022. Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was in surplus.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and over 2022 is set out in the table below.

Deficit liability – CEFPS

Deficit liability – CEFPS
Balance sheet liability at 1 January
Deficit contributions paid
Interest cost
Change to balance sheet liability
Balance sheet liability at 31 December
Assumptions:*
Discount rate
Price Inflation
Increase to total pensionable payroll		 2022
£’000
16
(8)
-
(8)
-
n/a
n/a
n/a		 2021
£’000
39
(16)
-
(7)
16
0.0% pa
n/a pa
(1.5%) pa

*comprises change in agreed deficit recovery plan and change in discount rate and inflation assumptions between year ends.

10 (2021: 9) of The Mission to Seafarers’ employed chaplains are currently funded by the Archbishops’ Council under Vote 4 provisions. Employer’s contributions of £68,000, representing current contributions and the deficit repair contributions above, (2021: £93,000) were paid by the Mission to the CEFPS and are included in Staff costs (note 11). This amount was reimbursed by the Archbishops Council and is included in Donations (note 3).

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

15.3 CEDBS (also known as the Church Workers Pension Fund)

The Church Workers Pension Fund has two sections known as the Defined Benefits Scheme and the Pension Builder Scheme (which has two subsections; a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014).

The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries.

For funding purposes, DBS is divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns. The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. They do not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers’ sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, is exposed to actuarial risks associated with the current and former employees of other entities participating in DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme.

If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool, further transfers may be made from the Life Risk Pool to the employers’ sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be settled by the Church of England Pensions Board having taken advice from the Actuary.

A valuation of DBS is carried out once every three years. The most recently finalised was carried out at 31 December 2019. In this valuation, the Life Risk Section was shown to be in deficit by £7.7m and £7.7m was notionally transferred from the employers’ sub-pools to the Life Risk Section. This increased the Mission’s contributions that would otherwise have been payable. The overall deficit in DBS was £11.3m (last valuation at 31 December 2016: £26.2m deficit). The next actuarial valuation is due at 31 December 2022.

Following the valuation, The Mission to Seafarers entered into an agreement with the Church Workers Pension Fund to pay a contribution rate of 32.7% of pensionable salary and expenses of £3,200 per year.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out below:

Deficit liability – CEDBS

The 31 December 2022 balance sheet liability is £nil (2021: £nil).

The legal structure of the scheme is such that if another employer fails, The Mission to Seafarers could become responsible for paying a share of that employer’s pension liabilities.

During the year The Mission to Seafarers paid pension contributions and expenses of £14,500 (2021: £10,700). The Mission currently has one (2021: 1) active member and 5 (2021: 5) deferred pensioners.

15.4 Defined Contribution Schemes

Royal London . A scheme for staff was set up in 2008 with Royal London (formerly Scottish Life). Contributions to this scheme are funded 3% by the employee and 7% by The Mission to Seafarers. There are 29 (2021: 26) members of staff in this scheme at 31 December 2022. Employer contributions to this scheme in 2022 were £70,000 (2021: £67,000) with £8,902 due to be paid at the year end (2021: £nil).

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

16. FIXED ASSETS

16.1 Intangible fixed assets
Cost 1 January 2022
Additions
Disposals
Net book value
31 December 2022
31 December 2021		 Group
Company
£’000
£’000
94
94
15
15
-
-
109
109
94
94		 Group
Company
£’000
£’000
94
94
15
15
-
-
109
109
94
94
109
94

16.2 Tangible fixed assets

6.2 Tangible fixed assets 6.2 Tangible fixed assets
Group
Cost
1 January 2022
Additions
Disposals
Transfers
Exchange difference
31 December
2022
Depreciation
1 January 2022
Provided during the year
Disposals
31 December
2022
Net book value 31 December
2022
31 December
2021
None of the property values were found
The Company
Cost
1 January 2022
Additions
Disposals
Exchange difference
31 December 2022		 Property
£’000
5,467
-
(237)
-
-
5,230
1,287
26
(237)
1,076
4,154
4,180
to be impaired
Property
£’000
5,467
-
(237)
-
5,230		 Motor
Vehicles
£’000
275
50
(46)
-
2
281
163
47
(46)
164
117
112
(2021: none).
Motor
Vehicles
£’000
275
50
(46)
2
281		 Motor
Vehicles
£’000
275
50
(46)
-
2		 Fixtures &
Equipment
£’000
815
185
(119)
-
-
881
796
20
(119)
697
184
19
Fixtures &
Equipment
£’000
812
185
(119)
-
878		 Total
£’000
6,557
235
(402)
-
2
6,392
2,246
93
(402)
281
1,937
4,455
4,311
Total
£’000
6,554
235
(402)
2
6,389

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

Depreciation
1 January 2022
Provided during the year
Disposals
31 December
2022
Net book value 31 December
2022
31 December
2021		 1,287
26
(237)
1,076
4,154
4,180		 163
47
(46)		 793
20
(119)
694
184
19		 2,243
93
(402)
164 1,934
4,455
4,311
117
112

Property

The properties held are split between categories as follows:
Freehold
Long term leasehold
Total		 2022
£’000
2,877
1,277
4,154		 2021
£’000
2,888
1,292
4,180

Freehold and leasehold property represents the book value of staff houses, pensioners’ houses, and club and office premises. Premises and club leases are long term with many at peppercorn rent. All assets are used by the charity for its charitable purposes or rented out if temporarily surplus to current operational requirements.

17. INVESTMENTS

17.1 Listed Investments

Market value 1 January
Additions
Disposals
Unrealised (loss)/gain for the year
Market value 31 December
Listed investments
Total
Historical Cost at 31 December		 Group
£’000
29,849
215
(14)
(3,509)
26,541
26,541
21,810		 2022
Company
£’000
29,735
215
(13)
(3,496)
26,441
26,441
21,731		 Group
£’000
23,209
3,257
-
3,383
29,849
29,849
21,595		 2021
Company
£’000
23,110
3,256
-
3,369
29,735
29,735
21,516

The CCLA’s annual management charge in relation to the CBF Church of England Investment Fund (Investment Fund) is 0.55% (2021: 0.55%) of the value of the portfolio although this was not directly charged to the Mission but against the capital of the Investment Fund. The total ongoing charges figure which includes the annual management charge and other operational costs is 0.77% (2021: 0.77%)

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

Analysis of investments

2022 2021
Group Company Group Company
£’000 £’000 £’000 £’000
Holdings in multi asset funds 26,541 26,441 29,836 29,723
Fixed interest securities - - 12 12
Total 26,541 26,441 29,848 29,735
As part of a multi asset Investment Fund, significant individual holdings cannot be identified, however the
significant class of holdings (over 5%) at 31 December were:
2022 2021
Overseas Equities 48% 65%
Cash and near cash 25% 8%
UK Equities 8% 10%
Infrastructure and Operating assets 6.5% 6.5%

17.2 Investments in subsidiaries The Company controls the following principal active subsidiaries, the results of which have been consolidated.

Name of Company Country % No of shares held Net Net Assets
of in- Holding/ and value Income as at Nature of Business
corporati Control 2022 31/12/22
on £'000 £'000
12 shares; 8 held
The Dunkirk War
Memorial Trust
Ltd		 UK 100 by the Mission, 2
held by Mission
directors, 2 held
by other directors		 (10) (3) Provision of
spiritual and
practical welfare
for all seafarers
£12
Flying Angel
Marketing
Enterprises Ltd		 UK 100 6 shares
£6		 - 1 Sales of
promotional goods
The Flying Angel
Belfast Ltd		 UK 100 1 share
£1		 - - Sales of catering
services and
promotional goods
The Mission to
Seafarers
Scotland Ltd		 UK 100 Company limited
by guarantee,
sole member		 7 132 Provision of
spiritual and
practical welfare
for all seafarers
The Mission to
Seafarers Trust
Corporation Ltd		 UK 100 11 shares
£11		 - - Holds property as
custodian trustee
on behalf of the
Mission

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

18. DEBTORS

Amounts owed by group/associated undertakings;
Flying Angel Marketing Enterprises Ltd (FAME)
The Flying Angel Belfast Ltd (FAB)
The Dunkirk War Memorial Trust Ltd (DWMT)
The Mission to Seafarers Scotland Ltd (MtSS)
Trade debtors
Prepayments and accrued income
Other debtors
Total		 2022
Group
£’000
-
-
-
-
187
669
52
908		 2021
Group
£’000
-
-
-
-
172
621
37
830		 2022
Company
£’000
2021
Company
£’000
2
3
22
20
183
355
-
1
184
161
667
621
51
37
1,109
1,198

The prepayment and accrued income includes accrued legacies £243,000 (2021: £208,000). A proportion of legacies receivable may be received after more than 1 year, but this figure cannot be determined with any accuracy due to the inherent uncertainty in the timing of legacy income receipt.

Amounts due from FAB include a £10,000 (2021: £10,000) concessionary loan made to FAB which is secured and carries a market rate of interest and is repayable on demand.

Amounts due from DWMT in 2021 included £188,000 concessionary loan to undertake essential repairs to the centre in Dunkirk. In 2022 £172,000 was repaid and the balance of the loan will be paid in full before the DWMT is wound up, which is expected to be during 2023.

19. CURRENT LIABILITIES

20. RESTRICTED FUNDS
Trade creditors
Social security and tax
Accruals and other creditors
Total
Restricted funds 2022		 2022
Group
£’000
2021
Group
£’000
2022
Company
£’000
2021
Company
£’000
107
103
106
99
38
70
38
43
936
188
939
188
1,081
361
1,083
330
Opening
Balance
£’000
Income
£’000
Expenditure
£’000
Transfer
£’000
Closing
Balance
£’000		 2021
Company
£’000
99
43
188
330
Africa ports (Lagos, Mombasa, Richards Bay,
Saldanha Bay & Port Elizabeth) welfare
support, The Seafarers Charity		 -
32
(10)
-
22
Belfast branch building reserve fund 376
-
-
(8)
368
Cadetship project; TK Foundation 10
-
(10)
-
-
Chat to a Chaplain support, The Seafarers
Charity		 -
23
(23)
-
-
Christmas welfare for seafarers;
International Transport Workers’ Federation
£7k; ICMA, Mission to Seafarers Rotterdam		 1
7
(8)
-
-
Christmas welfare for Ukrainian seafarers;
Baltic Exchange Caledonian Society £14k;		 -
14
(14)
-
-
Dubai,UAE Ship visitor and welfare work;
International Transport Workers’Federation		 -
47
(4)
-
43

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

Restricted funds 2022 (continued)
Felixstowe chaplaincy and welfare; Harwich - 25 (11) 14
Haven Authority
Flying Angel Campaign 47 - (47) - -
i.in response to the COVID-19 pandemic;
Clearwater Foundation and many others
ii.technical Solutions; TK Foundation, The 116 (26) (90) - -
Marine Society, Seafarers UK, Norden
Shipping, Tindall Riley, Wallem Group, Baltic
Charitable fund, Trinity House, Ship Owners,
Vickers and many others
Great Yarmouth centre; Shell - 15 (15) - -
Innovations fund; AET Tankers 9 - - - 9
Justice & Welfare support, Samaritan Fund &
Advocacy for the Middle East & South Asia 8 55 (49) - 14
region; The Seafarers Charity
Lagos centre repairs, Nigeria; International 35 - (9) - 26
Transport Workers’Federation
North Tees centre; Merchant Navy Welfare
Fund - 5 (5) - -
Philippines family projects country manager; - 23 (23) - -
The Sailors Home Hong Kong
Philippines family projects; Pacific Basin 17 - (17) - -
Shipping
Philippines family projects and WeCare 16 - (16) - -
resources; UK P&I Club
Philippines family projects Family Day; - 7 (7) - -
Singapore Shipowners
Port costs and advocacy UK; The Seafarers 90 100 (90) - 100
Charity
Port Talbot building costs; Merchant Navy 23 - - (8) 15
Welfare Board; Garfield Weston
The Austin Bailey Foundation, Maurice &
Hilda Laing Charitable Trust
Rotterdam Centre; Tritax - 22 (11) - 11
Rotterdam chaplaincy; individual donors 6 (6) -
Seafarers App; Cargill International SA £30k; 60 26 - - 86
The Seafarers Charity £30k; DNV GL £26k
(capitalised)
Seafarers Happiness Index; Standard Club - 33 (33) - -
£14k, Baltic Exchange Charitable Foundation
£5k and Idwal £14k
Seattle and Sydney support; Hamburg Sud - 6 - - 6
Ship visitor, Richards Bay; David Pellatt - 8 (8) -
Suicide prevention training & resources; 28 - (28) - -
Trinity House £20k, EBM £10k
Tilbury Ship visitor; David Pellatt - 22 (22) - -
Tauranga centre, New Zealand COVID-19 15 - - - 15
support; TK Foundation
Vehicles for use in UK Ports; Merchant Navy 27 37 - (20) 44
Welfare Board
Vehicle running costs Colombo, Singapore 15 15 - - 30
and South Tees; The Baltic Exchange
Charitable Foundation

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

Restricted funds 2022 continued
Vehicle running costs Saldanha Bay, South
Africa; Anglo American Marketing Ltd		 3
4
-
-		 7
-
22
WeCare programme and e-learning resource;
UK P&I club £23k and Kadmos £9k		 -
32
(32)
-
Others
Total
Restricted funds 2021		 26
2
(6)
-
922
543
(597)
(35)
Opening
Balance
£’000
Income
£’000
Expenditure
£’000
Transfer
£’000
833
Closing
Balance
£’000
Belfast branch building reserve fund 384
-
-
(8)		 376
_Cadetship project; TK Foundation _ 43
4
(37)
-		 10
Christmas welfare for seafarers;
International Transport Workers’ Federation,
_ICMA, Mission to Seafarers Rotterdam _		 6
12
(17)
-		 1
Coivd-19 relief funding for Oceania and
Africa regions; Seafarers’ International Relief
Fund		 -
35
(35)
-		 -
Dubai,UAE Welfare worker; International
Transport Workers’ Federation		 -
43
(43)
-		 -
Flying Angel Campaign
i.in response to the COVID-19 pandemic;
Clearwater Foundation and many others		 170
-
(123)
-		 47
ii.technical Solutions; DNV GL, TK
Foundation, The Marine Society, Seafarers
UK, Norden Shipping, Tindall Riley, Wallem
Group, Baltic Charitable fund, Trinity House,
Ship Owners, Vickers and many others		 208
-
(92)
-		 116
International Labour Organization training re
MLC 2006; International Transport Workers’
Federation (refunded)		 4
(4)
-
-		 -
Innovations fund; AET Tankers -
9
-
-		 9
Job Retention Scheme; HMRC -
12
(12)
-		 -
Justice & Welfare support and Samaritan
Fund for the Middle East & South Asia
region; The Seafarers Charity		 -
46
(38)
-		 8
Lagos centre repairs, Nigeria; International
_Transport Workers’ Federation _		 35
-
-
*		 35
Newport centre roof repairs; Merchant Navy
Welfare Board		 -
5
(5)
*		 -
Philippines family projects; Pacific Basin
Shipping		 -
22
(5)
-		 17
Philippines family projects and WeCare
resources; UK P&I Club		 32
19
(35)
-		 16
Port costs and advocacy; The Seafarers
Charity		 122
90
(122)
-		 90
Port Talbot building costs; Merchant Navy
Welfare Board; Garfield Weston
The Austin Bailey Foundation, Maurice &
Hilda Laing Charitable Trust		 30
-
-
(7)		 23
Seafarers App; Cargill International SA £30k;
The Seafarers Charity £30k		 -
60
-
-		 60
Seafarers Happiness Index; Standard Club
_£12.5k and Wallem Group £10.8k _		 -
23
(23)
-		 -

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

Restricted funds 2021 continued
Ship visitor, Richards Bay; David Pellatt		 -
8
(8)		 -
Suicide prevention training & resources;
_Trinity House £20k, EBM£10k _		 -
30
(2)
-		 28
Tauranga centre, New Zealand COVID-19
_support; TK Foundation _		 15
-
-
-		 15
Tuticorin, India seafarers and families
emergency feeding programme, Seafarers
International Relief Fund		 -
47
(47)
-		 -
Vehicles for use in UK Ports; Merchant Navy
Welfare Board		 47
-
-
(20)		 27
Vehicle for Myanmar; Tritax Management -
18
(18)
-		 -
Vehicles for Napier and Solomon Isles, New
Zealand; International Transport Workers’
Federation		 -
65
(65)		 -
Vehicle & mi-fi for Wellington, New Zealand;
International Transport Workers’ Federation
(refunded)		 2
(2)
-
-		 -
Vehicle for Yokohama, Japan; International
Transport Workers’ Federation		 -
25
(25)
-		 -
Vehicle running costs Colombo, Singapore
and South Tees; The Baltic Exchange
_Charitable Foundation _		 -
15
-
-		 15
Vehicle running costs Saldanha Bay, South
Africa; Anglo American Marketing Ltd		 -
3
-
-		 3
WeCare e-learning resource; Prime Training 10
-
(10)
-		 -
Others
Total		 26
-
-
-
1,134
585
(762)
(35)		 26
922

Restricted funds (note 1.4) represent capital grants or donations received for specific purposes. For capital grants or donations the transfer to unrestricted funds represents the depreciation charge on fixed assets.

21. UNRESTRICTED FUNDS
Unrestricted funds 2022
Designated funds
Fixed assets
Branches and subsidiaries
African Region Fund
Strategy plan 2022-2026
COVID-19 Emergency
Support Fund
Global Health & Safety &
Training Fund
Commitments to Retired
Chaplains
Total designated funds
General Funds
Total unrestricted funds		 Opening
Balance
£’000
3,919
8,565
204
2,000
407
500
1,000
16,595
26,339
42,934		 Income
£’000
189
1,107
-
-
-
-
-
1,296
3,201
4,497		 Expenditure
£’000
(58)
(1,894)
(30)
(84)
(25)
(29)
-
(2,120)
(6,489)
(8,609)		 Transfer/
Disposals
£’000
-
-
-
382
(382)
-
-
-
35
35		 Closing
Balance
£’000
4,050
7,778
174
2,298
-
471
1,000
15,771
23,086
38,857

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

Unrestricted funds 2021
Designated funds
Fixed assets
Branches and subsidiaries
African Region Fund
Strategy plan 2022-2026
COVID-19 Emergency
Support Fund
Global Health & Safety &
Training Fund
Commitments to Retired
Chaplains
Total designated funds
General Funds
Total unrestricted funds		 Opening
Balance
£’000
4,311
7,171
261
-
-
-
1,000
12,743
23,082
35,825		 Income
£’000
73
2,336
-
2,000
407
500
-
5,316
6,089
11,405		 Expenditure
£’000
(103)
(942)
(57)
-
-
-
-
(1,102)
(2,867)
(3,969)		 Transfer/
Disposals
£’000
(362)
-
-
-
-
-
-
(362)
35
(327)		 Closing
Balance
£’000
3,919
8,565
204
2,000
407
500
1,000
16,595
26,339
42,934

The Fixed Asset reserves represent the cost value, net of depreciation, of the investment in fixed assets owned by The Mission to Seafarers.

The Reserves of the branches, subsidiary companies and the African region fund are held for the purpose of

delivering services in the relevant geographical locations.

Any chaplain employed prior to 1983 with a minimum service of 30 years is entitled to be provided with housing for the remainder of their life. Although there are no further properties to be purchased, the Mission has an ongoing commitment to retired chaplains’ property costs including maintenance and council tax.

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2022
Unrestricted
General
Unrestricted
Designated
Restricted
£’000
£’000
£’000
Intangible fixed assets
-
23
86
Tangible fixed assets
-
4,027
428
Investments
20,456
6,085
-
Net current assets
2,630
5,636
319
Long term liability
-
-
-
Total
23,086
15,771
833
2021
Intangible fixed assets
-
34
60
Tangible fixed assets
-
3,885
426
Investments
23,172
6,677
-
Net current assets
3,183
5,999
436
Long term liability
(16)
-
-
Total
26,339
16,595
922		 Total
£’000
109
4,455
26,541
8,585
-
39,690
94
4,311
29,849
9,618
(16)
43,856

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

23. ECUMENICAL CENTRES

For many years The Mission to Seafarers was a joint trustee and involved in the management of the Humber Seafarers’ Service Ltd (Charity Number 1159953), the Felixstowe & Haven Ports (Charity No. 272077) and Port of Bristol Seafarers Centre (Charity No. 286078). On 30 June 2022 The Mission to Seafarers, along with the other joint Trustees Sailors’ Society and Stella Maris, transferred all the assets and liabilities of the three ecumenical centres to a new maritime charity QVSR Seafarers Centres.

24. FINANCIAL COMMITMENTS

At 31 December 2022 the Group and Company had commitments (2021: none) under non-cancellable operating leases as set out below:

Lease payments;
Land and
Buildings
2022
£’000
Land and
Buildings
2021
£’000
Due not later than one year
33
-
Due between one year and
five years
137
-
Due after five years
173
-
343
-		 Other
leases
2022
£’000
2
7
-
9		 Other
leases
2021
£’000
-
-
-
-

25. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

26. ANALYSIS OF CASH AND CASH EQUIVALENTS
Net (expenditure)/income for the reporting period_(as per the statement of_
financial activities)
Adjustments for:
Depreciation charges
Loss/(gains) on investments
Dividends and interest
Profit on sale of fixed assets
Decrease/(Increase) in stocks
Increase in debtors
Increase/(Decrease) in creditors
Net cash (used in)/provided by operating activities
Cash in hand
Notice deposits (less than 3 months)
Total cash and cash equivalents		 2022
£’000
(4,261)
93
3,509
(871)
(25)
(4)
(78)
704
(933)
2022
£’000
1,263
7,477
8,740		 2021
£’000
6,933
103
(3,383)
(712)
(80)
4
(233)
(52)
2580
2021
£’000
1,936
7,199
9,135

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THE MISSION TO SEAFARERS TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2022 NOTES TO FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2022

27. ANALYSIS OF CHANGES IN NET DEBT

27. ANALYSIS OF CHANGES IN NET DEBT
At 1 January
2022
Cashflows
Other non-cash
changes
£’000
£’000
£’000
Cash at bank and in hand
9,135
(395)
-
Total
9,135
(395)
-
28. SUMMARY SOFA FOR THE MISSION TO SEAFARERS COMPANY NO. 622024
2022
£’000
Income
4,892
(Loss)/gains on investments
(3,496)
Expenditure
(5,652)
Net (expenditure)/income
(4,256)
Gain/(loss) on foreign exchange
93
Total funds brought forward
43,713
Total funds carried forward
39,550		 D At 31
ecember
2022
£’000
8,740
8,740
2021
£’000
8,321
3,369
(4,751)
6,939
(20)
36,794
43,713

29. PROVISION

Following an accident on 13 October 2020, The Mission to Seafarers has pleaded guilty on 20 June 2023 to a breach of Section 33(1)(a) of the Health and Safety at Work etc. Act 1974. Sentencing is scheduled for 24 November 2023 and a provision has been accrued at the balance sheet date.

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