Sea-change Sailing Trust Accounts 2021
The View from the Wheel from Richard Titchener
Now that the nation has largely started to live with Covid, it is easy to forget how it continued to affect almost every aspect of our lives in early 2021. As we enter the 2022 sailing season it is clear the tail of Covid is still having some impact, even as we look forward to a much more “normal” season. When our trustees met in March 2021, it looked like restrictions on residential sailing would not end quickly. They wisely decided to do a range of heritage activities while waiting for our clients to be able to return.
We signed up for the six barge matches in the Championship as well as the friendly Passage Race; arranged to attend Newham Heritage Month at the Excel Centre in the Royal Docks; supported Raybel CIC in carrying a small amount of Caribbean produce from Ramsgate to London and attended the first Festival of Chatham Reach. Added to the grant towards training barge crews from Trinity House, the above made for an interesting and busy time. Interspersed between these activities were the small number of youth charters we were able to do, these being three residentials for small numbers of clients from Inclusion Ventures, a front-line charity that had worked through the pandemic supporting young peoples’ mental health, and one day trip for a special school who would normally come residentially.
We were able to restart in large measure due to the helpful emergency funding from Government, the Association of Sail Training Organisations and other funders. Also, several funders and clients kindly allowed us to carry forward funding. As a result, the charity enters 2022 with healthy finances for which we are immensely grateful. This is reflected in the figures in the accounts, showing a surplus as a result.
It was a year of changes in staffing as well. Don Ramsay retired in April after spearheading the appeal to build Blue Mermaid and many other things besides. Towards the end of the year, book-keeper Val Wright retired after sterling service and Community 360 took over. Prior to Covid, Yvette Wetton joined as trustee responsible for finance, but work commitments led to her departing again in early 2022. This leaves a vacancy for a Treasurer.
Otherwise, succession planning proceeds well. We were delighted to recruit Judy Harrison to replace Don. She comes froma sail training background and was able to start running suitably fast. Mate Oliver Evans successfully completed a Cruising Instructor Course and has started the examination process for a Barge Master qualification. Jake Robshaw has started training to succeed him as mate when the time comes.
There were some notable achievements during the year. The barge came first in her class in the races, was the first to sail into and out of the Royal Docks in 50 years, won the award for Environmental Excellence from ASTO last winter, and Sea-Change became the first Gold operator under the Thames Green Scheme. One of the Barge Master trainees supported by the Trinity House training scheme passed the qualification successfully. The Institute of Seamanship has awarded a grant to support seamanship training. Sea-Change was nominated by Maldon Mayor David Ogg as one of his charities during the year.
At the time of writing, plans for 2022 look like a more normal season but with some clients yet to fully return. Sea-Change is partnering Huw Wahl in his Wind, Tide and Oar film supported so far by the Arts Council. It is two years since the application for a cargo load line was submitted to the regulator, the Maritime and Coastguard Agency, and at the time of writing (March 2022) progress has been made but work continues.
SEA-CHANGE PROJECTS LIMITED
TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2021
DIRECTORS AND TRUSTEES
The trustees of the charity were: Paul Bowen, Peter Clay, Professor Francis Douglas, Hilary Halajko (Chair), Captain James Thom, Richard Robinson, Steve Williams and Yvette Wetton. All trustees are directors of the not-for-profit company which is limited by a guarantee not exceeding £10 each. In accordance with its governing document the charity remunerates a minority of trustees for professional services. This only applied to Hilary Halajko when working as Mate or Mentor. The Executive Officer and Skipper was Richard Titchener and Don Ramsay was employed as Trust Administrator until his retirement on 1* April. Judy Harrison joined on 5" July in a similar role. Other staff are hired on a contract basis as required. The trustees are grateful for the contribution by volunteers to both sailing and administrative activities.
STRUCTURE, GOVERNANCE & MANAGEMENT
The charity is governed by its Memorandum and Articles of Association incorporated 15th March 2007 as amended on 14th September 2008, and it obtained charitable status on 18th September 2008.
Appointment of Trustees: The trustees were selected for their specialist knowledge and experience of working with young people, of sail training and traditional sailing.
Trustee Induction and Training: The trustees have received copies of the governing document and the policies of the charity, and extensive briefing and discussion.
Organisation: The trustees met online under covid restrictions in March and in person in November to decide the strategy and policy of the charity, which is discharged on a day-to-day basis by the Executive Officer.
Risk Management: The Chair of Trustees and Executive Officer regularly review risks associated with the operation of the charity and have established methods to avoid or mitigate them. A regular assessment of risk associated with the sailing activity is carried out. Also, monthly assessment of the financial situation is carried out.
OBJECTIVES & ACTIVITIES
The objective of the charity is to provide activity-based learning for young people, and adults with special needs, and thus to enhance their confidence and improve their lives. This is done by living and working residentially aboard a traditional sailing vessel, with or without accompanying staff, where the emphasis is on participation taking the needs of the individual into account. The trustees confirm that when deciding upon the specific activities to be carried out by the charity during the year they have paid due regard to the Charity Commission's guidance on Public Benefit.
CHAIR'S REPORT
Achievements and Performance: The trustees recognise the importance of objective measures of success in the work of the charity and have taken steps to provide accreditation of the learning achieved by clients. The charity is a Royal Yachting Association Training Centre, RYA Sailability Foundation Organisation in recognition of its work with people with disabilities, and a member of the Association of Sail Training Organisations (ASTO). During the year the charity ceased being an Approved Activity provider with the Duke of Edinburgh Award Scheme due to poor uptake of the
opportunity for a number of years. There is research evidence that working together in a structured environment providing individual and group challenge is beneficial, and this is borne out by the reports of the staff who, in many cases accompany clients. They find a positive change in people when they return to school, college, youth club or work, and transfer the evidence of achievement with the charity back to normal life. ASTO carried out a research project in 2018/19 based ona significant sample of participants and it supported these results.
There continued to be impact from the Covid Pandemic on the operationsof the charity as restrictions were still in place for our activity at the start of the season. Hence, it was decided to participate ina number of heritage activities and barge races, bringing a busy year but with a small numberofcharters for young people.
Efforts continued to obtain a load line from the Maritime and Coastguard Agency but nothing was heard until the end of the year. The trustees decided to escalate the issue which resulted in questions on the stability data of the vessel, which were answered by the end of the year. In early 2022 efforts have continued to resolve the matter but at the time of this report there is no timescale as to when this will be achieved. In the meantime, sail-training work under the general Exemption for Thames barges continues and there is every expectation of a return to a more normal year in 2022. FINANCIAL REVIEW The charity depends on donations to discharge its ongoing work, both to cover a proportion of fixed costs and to provide funds for individuals and groups who are not able to afford full charter fees. The Trust Administrator, Don Ramsay followed by Judy Harrison, continued to devote a time to fundraising. The team of appeal patrons led by Rear-Admiral David Snelson has reduced in number with the success of the appeal for the Blue Mermaid, but a number continue to support the charity in its general fund-raising.
Costs of operation during the year were kept to a minimum with heritage activities being largely selffinancing, and thanks to the previous emergency funding and the ability to carry forward some bursary funding the charity enters 2022 in a healthy position.
Reserves Policy: The objective is to carry unrestricted reserves sufficient to finance six months of forward operation. The cyclical nature of the operational year makes this very difficult to achieve. Fundraising is prioritised over the winter period, though carried on throughout the year, and operations take precedence in the sailing season. The position at this year-end enables trustees to conclude they are entering the next operational cycle with sufficient reserves to embark on the new season. Trustees have commenced investigating how to establish an interest-bearing account to benefit the operation and maintenance of the vessel in future. It seems possible this could require a specific appeal for the purpose.
Pay Policy for Senior Staff: It is the policy of the charity to remunerate all staff reasonably for work done in accordance with ability to pay in the financial situation existing at the time, in comparison with similar-sized charities in the area. For sailing staff, comparison is made with staff working on the same or similar vessels doing such work.
Investment Policy: The Articles of Association of the charity enable it to invest as it considers necessary. This has not been actioned to date as there have been no excess funds, except in as much as the building of the new vessel represents investment. Should funds allow, the charity would like to set up an endowment to support the Blue Mermaid and the operation of the charity in future years
through investment income. Given the threat to survival from Covid there has been no progress with this desire during 2020. There are no plans to enter loan agreements.
FUTURE PLANS
Plans for 2022 assume a return to more normal residential work with charitable clients, and it is pleasing to note at the time of writing in March 2022 that this seems to be borne out by experience of bookings. Most clients have returned. Some new ones have been identified. With the second year of the barge crew training funded mainly by Trinity House, this results in an active season taking shape.
Succession planning continues. This has been successful for the shoreside activities with Judy Harrison having replaced Don Ramsay. Afloat efforts continue with Oliver Evans working towards a Barge Master qualification, his role as Mate being shadowed by Jake Robshaw. Oliver successfully completed a cruising Instructor Course in September with a view to becoming a full instructor replacing John Rhodes in due course. In the meantime, the Trust is very grateful for John’s continued support.
Plans to load cargo remain contingent on success with the load line. It is only possible to say the plan remains active, but timescales are unclear. This delay has a bearing on a number of activities, including developing the scholarship training scheme, a carbon trading model, a cargo network and relationships with users. It is also affecting (and likely reducing) fundraising income.
TRUSTEES RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
The trustees, as directors of the company, warrant that there is no relevant information of which the examining accountant is not aware, so far as we are aware, and that we have taken all reasonable steps to inform the accountant of any relevant information.
SMALL COMPANY PROVISIONS
The report has been prepared in accordance with the provisions applicable to companies entitled to the exemption for small companies.
Signed by order of the Trustees
----- Start of picture text -----
|
}5
Hilary Halajko, Chair of Trustees
----- End of picture text -----
vii Dated &l¢l yon.
SEA-CHANGE PROJECTS LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2021
| Trustees | Paul Bowen |
|---|---|
| Peter Clay | |
| Francis Douglas | |
| Hilary Halajko | |
| James Thom | |
| Stephen Williams | |
| Charity number | 1125958 |
| Company number | 6163852 |
| Registered office | Downs Road Boatyard |
| Maldon, | |
| Essex, | |
| CM9 5HG | |
| Independent examiner | |
| Community360 | |
| Winsleys House | |
| High Street | |
| Colchester | |
| CO11UG |
SEA-CHANGE PROJECTS LIMITED
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021
- | report on the accounts of Sea-Change Projects Limited for the year ended 31st December 2021.
Respective responsibilities of trustees and examiner
The Charity’s Trustees are responsible for the preparation of the accounts. The Charity’s Trustees consider that an audit is not required for this year (under section 144 (2) of the Charities Act 2011 (The Act) but that an independent examination is needed.
-
It is my responsibility to: - Examine the accounts under section 145 of the Charities Act, - To follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 145(5)(b) of the Charities Act, and
-
- To state whether particular matters have come to my attention.
Basis of independent examiner’s Statement
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes considerations of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently | do not express an audit opinion on the view given by the accounts.
Independent examiner’s statement
In the course of my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:
-
the accounting records were not kept in accordance with section 130 of the Charities Act; or
-
- the accounts did not accord with the accounting records; or - the accounts did not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair’ view which is not a matter considered as part of an independent examination.
-
| have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Shelley-Marie Rudling FMAATAATQB for and on behalf of: Community360
Winsley’s House, High Street, Colchester,Sti.Essex Date
----- Start of picture text -----
Z| Apel
----- End of picture text -----
| ont a £ of6o lH A - |
dA a N + es ee Bac’ Yo nN in om 00 |
N Olan NN O]N a) P00. Nonis cre) ro) |
an Ss oy o = |
° oO n |
a S ‘e wo — |
Ln 4 = oe) Ns |
wo rs) 2. Ln N NS |
|||
|---|---|---|---|---|---|---|---|---|---|---|
| a] by of |
moro fou | ee | 1 | 2) oO uy |
1 | D We |
Ln < |
isa) bo |
||
| S i")o |
a | Ni | ||||||||
| [a | ||||||||||
| 3 or Simw |
1 fF FF Foo |
00 00 fm Te N ie |
co ps ~ |
1 | ' | co ie ™~ |
fo) Ly + |
nN © wo |
||
| o | wo | wo | ||||||||
| oc | ||||||||||
| ao) 2 5) Abu on |
da aa) NN st t+ st ' 100 &R |
B | + ols +t Olt oO Aln S15 |
fon) fen) in |
a oO vey 2 |
fo) fo) oO |
oS aa oO S |
fo) >) a 5] |
||
| a ¢ |
||||||||||
| <¢ | ||||||||||
| me) | ||||||||||
| = a £ oo # AN - |
od ast un as ee S oo 00 aA in = =) |
in O}in oO dID iN. t+ Old ro) a a a |
iN) wo S. SN + |
S 4 ~ a |
Re) sal o Y) é N |
09 a = N AN re) |
||||
| ne] ro) «a % Nc S oH 2)@ |
toroeo4ufau | 1 1 |
t | 1 | t | 1 | ~ fo) m a I |
ioe) ° ws) a |
||
| a | ||||||||||
| z a + a 2 os UH 4 |
ee eeoe | 00 00 ra LS af ae ~ ~ |
oo a ~N |
1 | 1 | co > My NS |
oan = . ite) wo |
st % oS oy wo |
||
| [aa | ||||||||||
| 3 L Oo Ns om OH AY o ,a Sj |
wd In ds un tm IN S 0 od om N uw a a |
bh O}K oO dA} oO IN Oo Ol] [op) f=) a |
2 st Oo wn va) |
' | ' | S$ oO i is |
a S io} NS co |
a4 a at a tt el |
||
| 2 | ||||||||||
| £° | N | rm | ||||||||
| “i | a | |||||||||
| o ham E = = =a in EF bre ie) ce uu G) 2 < I (s) D < aw |
rwS nn WW — = =5 5 UO to 30a ae om Za tw — rid uw Ww => fr =r Ww Lael s& Bit |
. £ ° = = 2 w c [) @ = Eu Fs Oo YY ogee Y Bows So F be of. oWopLe Cuoaces cera YO a9Os ESE Ete ss oft os ssee8 Z£auofte |
B ~ iS ae] ® oT V < cD (3) o's n x Oo Y om wo 5S nwo £ 6 Sa 24 xo © Y s+ = ol: Ue $852 eoct fe |
> £7 5 = ) = 9S = o a wn gy s 3° n w bo & £ ° rs) = om 3 =a |
%) 6 3 c & £ o 2 be L rm) c & fee e |
c = = rt y ro} om ae ° w ¢ co Yn |
& o > = = _ = ro) E } rs) = = 3 a |
oO SS A a oo 5 G = es 4 © “ no] & ri |
oS q 9S N & a o 9 a eq Mi ” © w no] E a |
SEA-CHANGE PROJECTS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2021
| AS AT 31 DECEMBER 2021 | |||
|---|---|---|---|
| 2021 | 2020 | ||
| Notes | £ | £ | |
| Fixed assets | |||
| Tangible assets | 5 | 738,119 | 746,163 |
| 738,119 | 746,163 | ||
| Current assets | |||
| Debtors | 7 | 118 | 118 |
| Cash at bank & in hand | 87,149 | 53,567 | |
| 87,267 | 53,685 | ||
| Creditors:amounts falling due | 8 | (2,888) | (24,812) |
| withinone year | |||
| Net current assets/ (liabilities) | 84,379 | 28,873 | |
| Net assets | 822,498 | 775,036 | |
| Funds | |||
| Unrestricted funds | 10 | 147,620 | 92,580 |
| Restricted funds | 10 | 659,084 | 666,662 |
| Designated funds | 10 | 15,794 | 15,794 |
| Totalfunds | 822,498 | 775,036 |
For the period ended 31st December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The director's acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to small companies regime. The directors declare that they have approved the accounts above. Hilary Halajko,bY. Date 4 \ \y2
SEA-CHANGE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- Accounting Policies
Basis of accounting
The financial statements have been prepared in accordance with Accounting and preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Cash flow
The financial statements do not include a cash flow statement because the charity, as a small reporting entity, is exempt from the requirement to prepare such a statement under Financial Reporting Standard 1 "Cash flow statements".
Accounting period
The accounts are prepared on the basis for 12 months. Previous accounts were for 16 months.
Incoming resources
All incoming resources are included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Investment income consists of bank interest received within the year.
Resources expended
Expenditure is included on an accruals basis including irrecoverable VAT.
Fixed assets
Assets over £1,000 are capitalised and depreciated at the following rates in order to write them off over their estimated effective lives.
| Computer and Office equipment | 25% Straight line |
|---|---|
| Barge equipment | 1% Straight Line |
| Sailingequipment | 25%Straightline |
Funds
Funds held by the charity are either:
Unrestricted - these are funds that can be used in accordance with the charitable objects at the discretion of the trustees; or Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity.
Designated funds - are funds the trustees have put aside for the maintenance of the Blue mermaid
SEA-CHANGE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
| 2. | Investment income | Total | Total |
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| Interest receivable | - | - | |
| 3. | Fund raising | Total | Total |
| 2021 | 2020 | ||
| £ | £ | ||
| Management salaries | 6,683 | 7,200 | |
| Advertising | - | - | |
| Fundraising | 227 | - | |
| 6,910 | 7,200 | ||
| 4. | Charitable activities | Total | Total |
| 2021 | 2020 | ||
| £ | £ | ||
| Personnel | |||
| Directors salaries | 5,004 | ||
| Management salaries | 62,411 | 55,168 | |
| Establishment | |||
| Insurance | 786 | 1,299 | |
| Rent & rates | 1,748 | 780 | |
| Barge expenses | |||
| Charter fees | - | - | |
| Contractor fees | 300 | - | |
| Fuel, food & maintenance | 24,420 | 12,701 | |
| Support costs | |||
| Motor & travel | 529 | 493 | |
| Telephone & computer charges | 453 | 900 | |
| Printing & stationery | 299 | 269 | |
| Sundry | 3,042 | 1,482 | |
| Depreciation | 8,044 | 7,733 | |
| Governance costs | |||
| Independent examination fee | 420 | 420 | |
| Other accounting services | 1,933 | 1,375 | |
| 104,385 | 87,622 |
Personnel costs total of £39,645 (2020: £39,645) is split Unrestricted £39,645 (2020: £0) Restricted £0 (2020: £0).
Barge expenses total of £12,701 (2020: £12,701) is split Unrestricted £12,701 (2020: £0) Restricted £0 (2020: £0).
Support costs total of £12,367 (2020: £10,876) is split Unrestricted £0 (2020: £0) Restricted £7,578 (2020: £7,578).
SEA-CHANGE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
| 5 | Tangible FixedAassets | Office Equipment |
Sailing Equipment |
Blue Mermaid |
Tatal ora |
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Cost | |||||
| As at 1 January 2021 | 4,387 | 2,980 | 757,771 | 765,138 | |
| Additions(Disposals) | 0 | - | - | - | |
| As at 31 December 2021 | 4,387 | 2,980 | 757,771 | 765,138 | |
| Depreciation | |||||
| As at 1 January 2021 | 4,387 | 2,514 | 12,074 | 18,975 | |
| Additions | 6) | 466 | 7,578 | 8,044 | |
| As at 31 December 2021 | 4,387 | 2,980 | 19,652 | 27,019 | |
| Net Book Value | |||||
| As at 1 January 2021 | - | 466 | 744,952 | 745,572 | |
| Asat31December2021 | - | - | 738,119 | 738,119 |
The cost of building Blue Mermaid is being written off over 100 years from 27/05/2019. The depreciation for 2020 is £7,577.71.
| 6 | Staff Costs | Total | Total | |
|---|---|---|---|---|
| 2021 | 2020 | |||
| £ | £ | |||
| Wages & Salaries | 58,469 | 66,315 | ||
| Social Security Costs | 3,942 | 1,056 | ||
| 62,411 | 67,372 | |||
| 7 | Debtors | Total | Total | |
| 2021 | 2020 | |||
| £ | £ | |||
| Trade Debtors | 118 | = - | 1,100 | |
| Gift Aid | = | 1,218 | ||
| 118 | 118 |
SEA-CHANGE PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
| 8 | Creditors: fallingdue within a year | Total | Total |
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| Deferred Income | - | 24,207 | |
| Trade creditors | 1,617 | ||
| Accruals | 420 | 420 | |
| Taxation & Social Security | 851 | 184 | |
| 2,888 | 24,812 |
9 Related Parties
One trustee was remunerated a total of £9,053 (2020: £5,003.81) for the time spent providing sailing and mentoring services.
Mr R D Titchener is a party related to a trustee and earned wages in his capacity as Executive Officer and Barge Skipper of £28,479 (2020: £27,942).
10. Summary of Funds
| Summary of Funds | ||||||
|---|---|---|---|---|---|---|
| Brought | Incoming | Outging | Carried | |||
| Forward | Resources’ | GiftAid | Resources | Transfer | Forward | |
| £ | £ | £ | £ | £ | ||
| Unrestricted | 92,580 | 158,757 | - | 103,717 | - | 147,620 |
| Restricted | 666,662 | - | ~ | 7,578 | - | 659,084 |
| Designated | 15,794 | - | - | - | - | 15,794 |
| 775,036 | 158,757 | - | 111,295 | - | 822,498 | |
| Summary of Funds Continued | ||||||
| Analysis of Net Assets | (between restricted & unrestricted funds) | |||||
| Tangible | Net | Tangible | Net | Total | ||
| Fixed | Current | Total 2021 | Fixed | Current | 2020 | |
| £ | £ | £ | £ | £ | £ | |
| Restricted | 681,019 | - | 681,019 | 688,567 | - | 688,567 |
| Unrestricted | 57,100 | 84,379 | 141,479 | 57,596 | 28,873 | 86,469 |
| 738,119 | 84,379 | 822,498 | 746,163 | 28,873 | 775,036 |
10. Summary of Funds Continued
11. Designated Fund
The trustees have agreed to create a designated fund for the maintenance of Blue Mermaid as 20% of charter fees according to full cost recovery principles.