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2020-12-31-accounts

THE WHITE ENSIGN ASSOCIATION LIMITED

REPORT OF THE COUNCIL OF MANAGEMENT & AUDITED ACCOUNTS FOR THE PERIOD ENDED 31 DECEMBER 2020

Charity Registered No 206787

Company Registered No 00606887

Registered Office HMS BELFAST Tooley Street London SE1 2JH

Bankers

Auditors

Solicitors

National Westminster Bank plc 216 Bishopsgate London EC2M 4QB Appleby & Wood 40 The Lock Building 72 High Street London E15 2QB Ashurst LLP Broadwalk House 5 Appold Street London EC2A 2HA

A Limited Company, Registered in England and Wales, incorporated on 24[th] June 1958

Website: www.whiteensign.co.uk

"THE EXISTENCE OF THIS ASSOCIATION, RECOMMENDED BY THE ADMIRALTY BOARD, IS A REFLECTION OF THE GOODWILL THE CITY HAS ALWAYS FELT FOR THE ROYAL NAVY"

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THE WHITE ENSIGN ASSOCIATION LIMITED

REPORT OF THE WHITE ENSIGN ASSOCIATION COUNCIL OF MANAGEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

INTRODUCTION

  1. The Council of Management presents herewith the Annual Report and Audited Financial Statements of The White Ensign Association Limited for the year ended 31 December 2020. The Report is set out in the format required by SORP 2019 and is designed to provide salient information on the Charity, its activities and its plans for the future.

REFERENCE AND ADMINISTRATIVE INFORMATION

Title & Registration

  1. The registered name and number of the Charity is ‘THE WHITE ENSIGN ASSOCIATION LIMITED’ No: 206787, (hereafter referred to as ‘WEA’ or ‘the Association’).

Registered Office

  1. The registered office of the Association is HMS BELFAST, Tooley Street, London SE1 2JH.

The Trustees

  1. The registered Trustees serving continuously between the periods 1 July 2019 to 31 December 2020 were as follows:

Commander L H L Batchelor RNR Mr S A Black Mr E W Byers The Lord Carlile of Berriew CBE QC: Chairman Mrs H Deeble CBE Captain A P Gosling RNR Vice Admiral Sir Adrian Johns KCB CBE DL Commodore I Kennedy CBE QHNS Miss S Murray OBE Mr James Saunders-Watson DL Admiral Sir Mark Stanhope GCB OBE DL: Vice Chairman* Admiral Sir George Michael ZAMBELLAS GCB DSC DL

* Members of the Finance & General Purposes Committee

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THE WHITE ENSIGN ASSOCIATION LIMITED

Vice Presidents

  1. The following senior former members of the Council have been appointed Vice Presidents of the Association since relinquishing their duties as members of the Council and are still serving as such:

Mr J D Andrewes MA FCA Sir Michael Bett CBE MA Admiral Sir Jonathon Band GCB DL Admiral of the Fleet Lord Boyce KG GCB OBE DL Mr C J Cazalet MA FCA Admiral Sir Michael Layard KCB CBE Sir John Parker GBE Sir Patrick Sergeant Admiral Sir Jock Slater GCB LVO DL Mr R J Taylor

Royal Patron

  1. HRH The Prince of Wales is the Patron of The White Ensign Association, which was founded by his late great-uncle, Admiral of the Fleet Earl Mountbatten of Burma.

The Chief Executive and Staff

  1. All permanent members of staff, with the exception of the Support Manager, have served in the Armed Forces and all are based in HMS BELFAST. The staff conduct a programme of visits to ships, submarines, naval shore establishments, naval air squadrons and Royal Marines units to fulfil various lecture programmes and undertake one-to-one counselling and casework.

  2. The Chief Executive is Captain J P Lavery MVO Royal Navy, appointed by the Council with effect from 17[th] January 2012. The Chief Executive is supported by a Director of Finance (who is also the Company Secretary, Data Protection Manager and Regional Manager for Central England and Scotland), a Director of Employment Services, a Regional Manager South and a Regional Manager South West. Day to day administration and support of the charity’s activity is carried out by the Administration & Support Manager.

Remuneration Policy Setting

  1. Staff Remuneration is considered on an annual basis by the Nominations and Remuneration Committee (NRC) who consider proposals from the Chief Executive covering salary, travel allowances and any special bonus. The final award is then ratified by the Council of Management.

The Advisers

  1. A panel of professional advisers has been formed to provide advice and guidance to clients of the Association. The names and details of the advisers are published in the charity’s Annual Review and are listed on the Association’s web site.

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THE WHITE ENSIGN ASSOCIATION LIMITED

STRUCTURE, GOVERNANCE & MANAGEMENT

Constitution

  1. The Association is a registered charity and a company limited by guarantee. It was incorporated on 24 June 1958 and is governed by its Memorandum and Articles of Association.

  2. The Council is the Governing Body of the Association and consists of the elected trustees (see paragraph 4). It meets formally once a year and additionally as required.

The Finance & General Purposes Committee (F&GPC)

  1. The Council has delegated day to day oversight of the Association’s operations to the F&GPC, which meets twice a year and additionally as necessary.

Trustee Policy

  1. The selection, induction, reviews and monitoring of trustees is overseen by the NRC as part of its remit from the Council and is charged with the nomination of suitable candidates to maintain the necessary breadth of expertise on the Council. A training programme, including a comprehensive presentation and staff briefing, has been prepared for trustee induction. During the period of this report the Association saw the retirement of two members of the Council of Management and welcomed three new trustees.

Risk Assessment and Compliance

  1. During the year, the Council (through the F&GPC) has reviewed the full range of risks to which the Association could be exposed and the necessary management action to mitigate them. The Association has a Risk Management Plan, which integrates the ongoing assessment of risks into the day to day management processes of the company. A summary of the main risks associated with the Charity’s activities are contained in the table below:
Risk Description Mitigation and Notes
Product.
Not meeting the needs of customers		 Prepare and adopt a Strategic Plan to shape and adapt business
output to reflect and anticipate market requirement. Continually
improve, update and augment guidance and advice available.
Finance.
Significant loss of income		 Regular monitoring by the Finance and General Purposes
Committee. Consideration of fresh initiatives to increase income
and control expenditure. Maintenance of long-term investment
funding at levels to meet a projected future running costs.
Regulatory Compliance.
Damage to reputation and risk of
FCA investigation and potential
closure.		 Company business procedures to reflect legislative and regulatory
changes relating to Company Law, Charity Commission
regulations, Bribery Act 2010 and FCA guidelines. Staff to guard
against inadvertent passing of financial advice or opinion that does
not reflect the considered view of the Association. GDPR
compliance strictly enforced and closely monitored.
Business Continuity.
Inability to conduct business.		 Business Continuity Plan to be reviewed regularly. Regular review
of staff availability to ensure maintenance of national coverage at
reasonable levels.
Relevance.
Resulting in a reduction in demand
for the Association’s services.		 Staff to monitor MOD activity and charity sector networks for
indications of strategic market changes and the entry of newcomers.
Maintain presence and visibility at all appropriate Service Charity
and MOD events

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Public Benefit

  1. The Council has referred to the advice contained in the Charity Commissioner’s general guidance on public benefit when reviewing the Association’s aims and objectives and in planning future activities. The Association’s charitable services, which are provided free, are available to all who have served in the Royal Navy and Royal Marines, the Royal Fleet Auxiliary, the QARNNS or the Reserve Forces from the time they join the Service until they die. The Association’s services may also be accessed by dependants and the WEA will always endeavour to advise and assist people who approach the charity for help, but who may not have a Royal Navy or Royal Marines background.

OBJECTIVES & ACTIVITIES

Objects

  1. The principal objects of the Association are to assist and promote the interests of those who are serving or have at any time served in the Royal Navy, the Royal Marines, the Royal Naval or Royal Marines Reserves, in the former Women's Royal Naval Service, Queen Alexandra's Royal Naval Nursing Service or the Royal Fleet Auxiliary, in such ways as shall from time to time be thought fit, and in particular and without prejudice to the generality of the foregoing by providing:

a. General guidance in connection with investments, house purchase, insurance (including educational costs and school fees), pensions and commutation.

b. Appropriate advice and guidance, through employment services, to deliver enduring support to both individuals preparing for, and to those seeking, civilian employment, including the establishment of small businesses.

c. General information and advice to those leaving the Service and seeking to settle in civilian life.

d. Information and advice on general personal administrative matters in suitable cases appropriate to the position and facilities of the Association.

  1. It should be noted that the Association does not make grants but facilitates and supports applications to other appropriate charities or organisations when, in the course of its welfare work, it comes across such cases of need.

Summary of Policies

  1. The Association’s policies have been designed to achieve these objects by providing the basic infrastructure to enable all those in the Naval Services (or who have served in them) seeking assistance with civilian employment, resettlement, investment, financial planning and general personal administration matters to obtain appropriate information, guidance, contacts and opportunities through:

a. A comprehensive counselling service, with a programme of regular visits to all major Royal Navy bases, shore establishments and Royal Marines units. Visits are also made to air squadrons and ships and submarines of the Fleet as requested.

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THE WHITE ENSIGN ASSOCIATION LIMITED

c. Services for the provision of lectures on transition, resettlement and financial awareness for members of the Royal Navy.

d. The creation of opportunities for senior directors and managers from commerce and industry to visit RN and RM ships and establishments to acquaint them at first hand with the skills and qualities of Service personnel.

e. Other activities, including arranging meetings for clients with the Association’s panel of professional advisors, facilitating networking connections, presenting briefings and organising events.

Membership Schemes

  1. The Association had two categories of membership:

Company Member - Annual Fee: £400 + VAT or £500 + VAT depending upon size of the company

Individual (Life) Membership – Offered to those who make either a significant financial or personal contribution

  1. The Association had 64 subscribing company members and 145 individual members on 31 December 2020.

ACHIEVEMENTS & PERFORMANCE

Overview

  1. Over the last 18months the Association, has tried to maintain its usual activity in support of its charitable objectives whilst coping with the implications and outcomes of the COVID 19 pandemic. During what has been an extended reporting period caused by the restructuring of governance oversight within the Association, 9 months has been at “normal running” and the remainder has been under COVID travel and social distancing restrictions which led to the cancellation of most of the year’s planned engagement and external programme. The result of the latter has been a significant reduction in face to face interviews and briefings and a move to a digital format for much of the charity’s interaction with clients. This new format has both allowed the WEA to maintain its profile and offer even greater flexible services at a time when much of the country and sector where adjusting to dramatic changes in work and wider lifestyle norms. Remote and digital working for much of 2020 has focussed attention on updating internal systems and processes to ensure that we are well placed to keep pace and relevancy with our client base and sector as working practices and expectations adjust to new routines and behaviours in a post COVID 19 environment. Investment in new IT equipment, cybersecurity protocols and a new casework management system and website (to be introduced in Q1 of 2021) has further enhanced the Association’s services and abilities in this environment.

  2. Engagement in the wider armed forces charitable sector remains a priority, where the WEA continues to actively contribute to a number a cross charity initiatives. The COVID crisis has forged much closer links between the naval charities who have all been involved in providing new services and support to our community and the Association has developed several new joint projects to support particularly vulnerable groupings with the RNRMC and RMA. As one of the few external bodies invited by the MOD to assist in pensions development and communication the charity is a key contributor to the development of the department’s strategy following the McCleod judgment.

Work Summary

  1. Work over the year comprised (2018/19 figures in parenthesis for comparison):

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THE WHITE ENSIGN ASSOCIATION LIMITED

Advice, Assistance and Information: There were 1527 (942) direct requests for assistance or information from members of staff whilst 1789 (1228) individuals registered on the website or asked for help for the first time.

Interviews: 290 (474) personal interviews were conducted. Visits: 226 (235) visits to ships, units, establishments and individuals were carried out. Lectures: 189(202) lectures were provided to audiences totalling 3610 (3581) people – financial awareness 1577, transition preparation 1029 and other topics 1004.

  1. The COVID pandemic effects have undoubtedly decreased the numbers of individuals the charity has interacted with over the past 18 months. Much of the decline relates directly to the inability to carryout unit level briefings for much of 2020. Individual client approaches have remained proportionately similar to previous years but the lack of personal interview opportunities, and the convenience this provides to our client base has influenced activity during the summer months. The split between officers and ratings who use our services has seen a slight increase in the proportion of enquiries and clients from ratings and other ranks (72%) with a matching reduction from the officer corps (28%). The split between RN and RM remains just over 3:1 which corresponds to the wider service split between dark blue and lovat. The amount of work undertaken on behalf of non-uniformed clients with veterans, families and dependants has increased to 21%, the bulk of which is associated assistance to veterans.

  2. The subject of enquiries to the WEA has remained relatively unchanged with employment related topics forming the single largest proportion (55%). Personal finance and pension questions accounted for 27% with pension queries still the largest area of concern (22%). The remainder of staff activity has been evenly split between more general resettlement issues and broad life challenges including 4% on medical discharges and 5% on divorce and legal issues.

Events

  1. The Annual General Meeting was held in London on 14th November 2019 at HMS PRESIDENT in London.

FINANCIAL REVIEW

Results for the Year

  1. The Association increased its revenue substantially due to a magnificent donation from our late President, whilst maintaining similar expenditure to the previous reporting period. This huge increase in unrestricted donation income resulted in an operating surplus on 31 December 2020 of £4,764,161. This surplus included unrealised gains of £56,694 in investments to leave a retained surplus of £6,220,796.

Balance Between Direct Charitable Costs and Overheads

  1. The allocation of costs between the main functional areas laid down by the Charity Commission is based on analysis of overall activity levels and cost and time by value, spent on individual and collective tasks. The major item of expenditure is the cost of staff and 88% of staff time by value is spent on the primary output of the Charity (interviewing, casework and lecturing) and is therefore categorised as ‘activities in furtherance of the charity's objects’. The overall balance between direct charitable output and overheads and running costs is considered reasonable.

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Investment Policy

  1. The Association’s investment policy is to build up over time sufficient reserves to secure its long-term future. Cazenove Capital Management manage all the Association’s investment funds with set objectives to preserve the real value of the capital while producing income to finance charitable needs.

Designated Endowment Fund

  1. The White Ensign Association Designated Endowment Fund was set up following receipt of two major donations in September 1995. The purpose of the Fund is to help secure the long-term future of the Association and the income is used to fund continuing activities.

  2. The Trustees are not aware of any material uncertainties which would affect the Charity’s ability to continue as a going concern. The Trustees review this issue on a regular basis

Policy on Reserves

  1. The Association depends for its financial viability on donations. Donation income, which by its nature is uncertain, supplements the returns from the Association's investments. The Association’s policy on reserves is to maintain a value matching assessed operating costs for an extended period to allow for continued support to existing clients in the event of a significant reduction in current anticipated donation levels. The Charity’s Reserves held at the year-end date are above the Reserves policy. The Charity’s policy on Reserves and their disposal are regularly reviewed taking into account investment advice and market volatility.

COUNCIL’S RESPONSIBILITIES

Financial Statements

  1. Company law requires the Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the income and expenditure of the company for that period. In preparing those financial statements, the Council is required to:

  2. (a) Select suitable accounting policies and then apply them consistently;

  3. (b) Make judgements and estimates that are reasonable and prudent;

  4. (c) State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statement;

  5. (d) Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

Accounting Records

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

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THE WHITE ENSIGN ASSOCIATION LIMITED

Auditors

  1. A resolution to appoint new auditors will be proposed at the Annual General Meeting.

THE FUTURE

  1. The Council of Management will continue to strive to ensure that the Association maintains a suite of services to the sailors, marines, both present and past, and their families, that remains relevant and of value. Specific areas of the Service and locations will be targeted to ensure that awareness of the Association remains high, whilst further opportunities for closer working relationships within the wider service charity sector will continue to be explored. The Association’s principal aims and objectives for the next 5 years, along with specific undertakings for 2021-21 are detailed within the White Ensign Strategic Plan, which is published on the WEA website.

By order of the Council

J P Lavery MVO Chief Executive

The White Ensign Association Limited HMS BELFAST Tooley Street London SE1 2JH

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THE WHITE ENSIGN ASSOCIATION LIMITED INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 31ST DECEMBER 2020 Notes 2020 2019 Income GainsllLossesl on investments 5,424,879 56,694 5,481,573 462,571 38,366 500,937 Expenditure 1 717,4121 1 702,2371 Net Incomellexpenditurel before tax for the reporting period 4,764,161 ( 201,3001 Tax Payable Net Incomellexpendlturel for the financlal year 4.764,161 ( 201.300 1 All income relates lo unrestricted funds. A detailed analysis of income and expenditure by source is provided in the Statement of Financial Activities and the notes to the financial ststemenls. The notes on pages 15 to 21 form part of these financial statements. -12-

THE WHITE ENSIGN ASSOCIATION LIMITED Statement of Financial Activities for the period ended 31st December 2020 Unrestrlcted Funds Total Total Funds Funds 2020 2019 Notes Income and endowments from: Donations Charitable Activities '. Fees Other Trading activities.. Subscriptions Investment income Other income 5.279,402 237,223 24,570 42,270 50,740 52,467 23,100 45,762 131,916 Total 5.424,879 462.571 Ex endlture on: Raising funds 22,966 16,784 Charitable activities 593,333 623,235 Other Costs {including publicity) 101,113 62,218 Total 717,412 702,237 Nel Gainsl (Losses) on investments 56,694 38,366 Net (expenditure) 4.764.161 1201.3001 Transfers between funds Net movement in funds 4,764,161 1201,3001 Reconclllatlon of funds: Total funds brought forward 1,456,635 1,657,935 Total funds carried forward at 30th June 2019 10 6,220,796 1,456,635 The company has no recognised gains and losses for the year other than those shown above and therefore no separate statement of total recognised gains and losses has been presented. The notes on pages 15 10 21 form part of these financial statements. -13-

THE WHITE ENSIGN ASSOCIATION LIMITED Balance Sh88t as at 31st D8c8mb&r 2020 Company No. 00606887 Total Funds 2020 Total Funds 2019 Notes Fixèd assèts Tangible asseis Investments 8,258 3,602,983 1,355,188 Total fixed assets 3,611,241 1,355,188 Curr¢nt ass¢t$ Debtors Cash al bank and in hand Total current assets 2,847 2,632,128 2,634,975 29,691 109,064 138,755 c￿dIf0r$= amounts falling dLJe within one year 125,4201 137.3081 Net currant assets 2,609,555 101,447 Total net assets or liabilities 6,220,796 1,456,635 General funds Restricted funds 10 10 6,220,796 1,456.635 Totsl ¢harity funds 6,220,796 1,456,635 The financial statemenls on pages 12 to 21 were approved by the Finance and General Purposes Committee, on behalf of the Council of Management on 25th March 2021 and were signed on its behalf by.. Lord Carlile of 8erriew CBE QC Chairman & Member of the Counal of Management Admiral Sir Mark Stanhope GCB OBE DL Vice Chaiman & Member of the Council of Management Th8 nolos on paggs 15 10 21 fom part of these financial stalemenls. -14-

THE WHITE ENSIGN ASSOCIATION LIMITED otes to the financial statements- 31st December 2020 Principal A¢¢ounting Policies. The financial statements have been prepared in accordance with the Companies Act 2006 and follow the recommendations of the Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102}. Basis of accounting Monetary values are calculated uiider the historical cost convention inodified by the inclusion of investm¢nts at th¢ir aggr¢gat¢d quot¢d mark¢t valu¢. Ineome Subseriptions for the Company Membership scheme, RN LeetL]re program, listed investments and bank interest are credited lo income on an accruals basis. Income from donations is credited on a cash Teceived basis. Depreciation Depreciation is calculated on a Straight line basis so as to write off fixed assets over their expected useful lives. The principal annual rates used for this purpose are- Equipment 2501. Investments The investment assets have been shown at market value in the period ending 3 1st December 2020 ￿11th the comparatives for the year ending 30th June 2019 also shown at th¢ir mark¢t valu¢. Th¢ r¢valuation surplu% ha% b¢¢n shown on th¢ gtatem¢nt of financial activities as net realised and unrealised gain on investment assets. -15-

THE WHITE ENSIGN ASSOCIATION LIMITED Iyotes to the financial statements - 31st December 2020 Endowment and unrestricted funds The Trustees set aside at their discretion de5igsnated sums foLThing' part of the Association's unrestricted funds to be used for maintaining future activities of the Association. Such sums are described and disclosed as Designated Endowment Fund. The Trustees have the power to reallocate siich funds within the unrestricted funds unless and until expended. Pension individuals pension provision by making a monihly payment to the individual. This payment is for the individual to make Provision for their pension on a personal basis. Functional classification of expenditure Each component of expenditure is analysed by time and cost, based on task and activity and allocated proportionately to the prime functional areas laid down by the Charity Commission in SORP 2019. Donation income In common with many other charities of similar size and organisation, a Proportion of income is derived from donations which cannot be fully controlled unlil they are entered into the accountiiig records. In the opinion of the Council of Management this does not constitute a significant uncertainty in the preparation of the accounts. Emoluments of Council of Management Members No emoluments were paid during the year to any member of the Council of Management. Employee information 2020 2019 Numbgr Number The aveTage monthly number of persons ernployed during the year was.. The emoluments of one employee exceeded £ l 00,000 The emoluments of two employees exceeded £60,000 2020 2019 Staff costs (for the above persons)- Wages and salaries (including holiday pay provision) Social security costs Pension costs 461,872 57,564 25,448 544,884 330,555 37,609 15,290 383,454 Remuneration of Ke Mana ement Personnel Total employee benefits (including einployer's National Insurance contributions, Pension contributions and oth¢r bcnLfits) paid to th¢ key Inanag¢m¢nt personn¢l (Chicf Ex¢cutiv¢ and Finance Director), totalled £196,181 in the year. (2019- £191,713) -16-

THE WHITE ENSIGN ASSOCIATION LIMITED Notes to the financirdl statements- 31st December 2020 Analysis of total resources expendedl.) livities on the Charlty's Objects Cost of Ralslng Funds Other Costs Total 2020 Total 2019 Staff costs linc pensions) 21,795 479,498 43,591 544,884 383,454 Communications (incl IT,Prinb'ng, Postage) 40,068 13,356 53,424 13,134 Rent, rates, light & heal 10,562 3,521 14,083 11,445 General expenses 1,541 1,541 676 Travellcorp HostinglTraining 1,171 22,252 23,423 26,288 Events 40,953 40,953 243,092 Auditors remuneration 3,990 3,990 4,065 Depreciation 2,872 2,872 Investment Fund Management Fee 9,900 9,900 7,711 Bank Charges 63 63 61 Insurance 4,053 4,053 1,650 Public relations 18,227 18,227 10,661 22,966 593,333 101,113 717,412 702,237 I'l Note.. The White Ensign Association is not a grant awarding Charity and no grants have been paid in furtherance of the charills objects. -17-

THE WHITE ENSIGN ASSOCIATION LIMITED Notes to the financial statements - 31st December 2020 Tangible fixed assets 2020 2019 Office Office Equipment Equipment Costs As at 1 July2019 Additions Disposals 28,918 11,130 28,918 As at 31st December 2020 40,048 28,918 Depreclatlon As at 1 July2019 Disposals Charge for year 28,918 28,918 2,872 As at 31st De￿mber 2020 31,790 28,918 Net book value 31st De￿mber 2020 8.258 30 June 2019 Fixed asset investments Classtficalion of investments al market value.. 2020 2019 Fixed interest- Bonds 141,719 172,464 Equities {mainly common investment funds) 907,132 1,082,724 Cash held as part of investment portfolio 2,554,132 100,000 3,602,983 1,355,188 The acquisition costs of the above investments were £3,399,14012019.. £1,148,564) -18-

THE WHITE ENSIGN ASSOCIATION LIMITED Notes to the financial statements- 31st December 2020 2020 2019 Debtors Membership Fees other Debtors.. Pre-paid rent Pre-paid travel Pre-paid Insufftnce Event Paid in advance 1,500 1,300 10,786 2,638 1,347 14,967 29,691 2,847 Credltors- amounts falllng due wlthln one year 2020 2019 VAT creditor Holiday pay entillemenl Other creditors 2,136 7,288 15,996 2,136 31,296 3,876 25,420 37,308 19

THE WHITE ENSIGN ASSOCIATION LIMITED Notes to the financial statements - 31st December 2020 l al Analy$i$ of funds balances 2020 2019 Unrestricted funds Restricted funds Designated funds 5.440,796 676,635 780,000 780,000 6,220,796 1,456,635 Ib) Net movement in general fund balances during the financial year. Restricted Unrestricted Designated Funds Funds Funds Total As al 1st July 2019 676,635 780,000 1,456,635 Net Movement in general funds 4,764,161 4,764,161 As al 31 st December 2020 5,440,796 780,000 6,220,796 11 ANALYSIS OF NET ASSETS BETWEEN FUNDS Fund Balances at 31st December Unrestricted Designated 2020 are represented by Funds Funds 2020 2019 Tangible fixed assets Investments Current assets Current liabilities Total Nel Assets 8,258 2,822,983 2,634,975 125,4201 5,440,796 8,258 3,602,983 2.634,975 125,4201 6,220,796 780,000 1,355,188 138,755 {37,308} 1,456,635 780,000 12 Net movement in funds 2020 2019 This is slated after charging.. Audit fees (including VAT} Depreciation of fixed assets 3,990 3,876 -20-

THE WHITE ENSJGN.4SSOCIATION LIMITED STATE￿IENT OF CASH FLOIV FOR THE PERIOD ENDED 31ST DECEMBER 2020 Statement of cash flows Total fund5 2020 Prior >'ear funds 2019 Cash flows from operating actii'ities: Nei cash provided by (used in) operoiing rtrtiviiies 4.674,555 1304,779) Cash floiv5 from investing activities: Dividends, intereqt and rents from inve.%tments Proceeds froni the sale of property. plant and equipment Purchase of property. plant and equipinent mo￿eMent in invc8tments 50,740 45,762 (2,191,101} 327,711 Net cash provided by (used IM) inwesiinR attivities Cash floiv5 from financing activities: Repayments of borrowing Cash intlow frtsm new bom)wing Receipt of endownent Nel ¢4sh provided by (u.sed ill)finani¢ing 4¢tivilies i¢¢hvities 2,523,064 68,694 2,523,004 68,694 ChoNg£ in CéL¥h ond cash equivalents IA ihe peporlingperiod Cash &nd cash equivalents at the beginning of the reporting period Chan%e in Cash and eash equivalents duc to cxeh#n%e ratc moi'ements Cash and cash equivalents at the end of the reporting period 2,523,064 109,064 68,694 40,370 2,632,128 109,064 ReeoTheiliation of net intomel ex eThditure to Net eAsh flow from o erati activities Net irt¢ome/(dYpe*diiute)for the reportingperiod (usper ¢he s¢ulemeNt offinllu¢iul a¢liwilies) Adjustments for: Depieciation chdi¥es {CJainSlilo￿sC% on investments Dividends. interest and rent from investments Loss1(prufitl un the sale ol'lixed assets {Increase)Idecrease in stocks {Increase)Ide¢rease in debtors Increaselldecreasel in Lredilors Net cabh provided by (used in) uperaling octivities 4,764,161 (201,300) 2,872 (56,694) (50,740} 138,3661 145,7621 26,844 111,888} 4,674,555 125,0611 5,710 1304.7791 Total funds 2020 Prior year funds 2019 Amal sis of Cash and eash e uivalents Cash in hand Nntiec dcpa8it% Ilcs% than 3 mnnth%) Overdraft facility repayable on deniand Total cash and cash equivalents 2,632,128 109.064 2,632,128 109.064 21

THE WHITE ENSIGN ASSOCIATION LIMITED FOR THE PERIOD ENDED 31ST DECEMBER 2020 Independent Auditors, Report to the members of The White Ensign Association Limited Opinion We have audited the financial statements of The White Ensign Association Limited (the 'charitable company,) for the year ended 31 sl December 2020 whicli comprises the Ineome and Expenditure Account, the Sialemenl of Financial ActivitleS. the Balance Sheet and notes to ihe financial statements, including a summary of significant accounting policies and the Statement of Cashflows. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 Th¢ Financial Reporting Standard applicable in the UK aiid Republic of Ireland (United Kingdom Geiierally Accepted Aceounting Practice). In our opinion, thc financial statcmcnts.. give a true and fair view of the state of the charitable company's affairs as at 31 st December 2020 and of ils incoming rcsources and application of rcsources, including its income expenditure, for the ycar thcn cndcd,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and havc bcen preparcd in dccordance with the rcquircmcnts of the Companics Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK} IISAS (UK)) and applicable law. Our responsibilities under those standards are furtber described in the Auditor's responsibilities for the audit of the financial statements section of our report. We ar¢ independent of th¢ charitable company in accordance with the ethical requiremenis that are relevant to our audit of the financial statements in the UK, including the P'IIC'S Etliical Siandard, and we have fulfilled our other ethical respollsibilities 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. Coiiclusions relating lo going Concern We have nothing lo report in respect of the following matters in relation to which the ISAS (UK) require us to report to you where.. thc trustccs. usc of thc going conccrn basis of accounting in thc prcparation of thc financial statcmcnts is not appropriate- or thc trustccs havc not discloscd in thc financial statcmcnts any idcntificd matcrial unccrtaintics that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a peri(Kl of at least [wel￿e months from the date when the financial statements are authorised for issue. Other information The trustees are responsible for the other infonnation. The other information comprises the inf0m￿tIOn included in the Tnistees anniial report other than the financial statements and our auditor's report tliereon. Our opinion on the financial statements does not cover the other information and, except lo Ilie exlenl otherwise explicitly slated in our report, we do not cxprcss any form of as5urancc conclusion thcreon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or othenvise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine whether there is a material misstrdtement in the financial statements or a material misstatemenr of the othcr inforniation. If. based on the work we have pcrforn]cd, we conclude that there is a matcrial Inisstatement of this other information, we are required to report that fact. We have nothing to report in this regard. -10

THE WHITE ENSIGN ASSOCIATION LIMITED FOR THE PERIOD ENDED 31ST DECEMBER 2020 IThdependent Auditor5, Report to the members of The White Ensign Association Limited (colltinued) Opinions on other matter5 prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the coiirse of the audit.. tlie iiiforniatiot] given in tlie tru5tees' ieport foi the financial yeaT foT which the financial 5taternent5 are prepared is consistent ￿'It11 the financial statemellts; and thc trnstccs, rcport has bccn prcparcd in accordancc with applicablc Icgal rcqiiircmcnts. Matters on ￿hleh we are required to report bv exeeptioll the light of the knoii'ledgt diid uiideTSldiiding of the Lhdritable company and its enviionment obtained in the course of the audit. we hal'e not ideiitified mateTial misstatements in the t￿stee5, Teport. We have t]othing to repoit in respect of the following inatters in relation to which the CoTnpanie5 Act 2006 require5 us to report to you if, in our opinion.. adequute LtLcounting recoid5 hai'e not been kept, or retUTn5 adequate for our audit have not been ieceived from branches not visited by us,. or the financial statements are not in agreement with the accounting records and retums., or ccrtain di%closurc.% of lrn%tccs' rcmuncratloll spccifjcd by law arc not madc. or wc havc t)ot rcccivcd all thc information at)d cxplat)aliot)s wc rcquirc for our audit. Responsibilities of truste¢$ As explained niore fully Ill the tTUStees' responsibilities sthtement the trustees (who are also the diiectors of the charilablc company for thc purpo%cs of cojnpany lawl arc rcspon%iblc for thc prcparation of thc fjnancial %talcincnts and for being saiislied Ihai ihey give a irue and fair view, and for su¢h iniemal conirol as ihe irusiees determine is necessary to enable the pieparntion of financial statanents that are free fiom inatetial missvatement, whether due tts fraud or error. In pi'eparing the financial stateinent5, the trustees aTe responsible for as5es5ing the cliaritable compaiiy'5 ability to continuc as a going conccm, disclosing, as applicablc, mattcrs rclatcd to going conccrn and using thc going conccrn basis ot'a¢¢ounting unless ihe iruqtees either intend io liquidate the charitable company or to cease operniions, or h￿ve no ￿a]IStIC Hlternative but to do so. Auditor'$ r¢$pon$ibiliti¢$ for the &udit of the financial statem¢nt$ Our objectives are io obtain reasonable assurance about whether the tinancial staiements as a whole are free from matei.ial Inisstatement, whether due to fraud vr etTOI, and to issue ali auditOT'S rtpvrt that iiiclu(les our opinion. Reasonable assurance is a high It￿¢[ of aSSUTance, but is not a guarantee that an audit conducted in accordance with ISA8 IUKI will always detcct a matcrial mi$8tatemcnt whcn it cxi%ts. Mi%%tatcmcnt% can arisc from fraud or crror and are ionsidered material if., indi&idually 01 In the a¥gr¢¥ate. they Lould reabonably be expected to influenLe the econotnic decisions of u5er5 taken ot] the basis of these financial statements. A further description of our respollsibilities for the audit of the fillancial statements is located on the Financial Rcporting Council's wcbsitc at.. https.'I/Mvw.frc.org.uldauditorsrcsponsibilitics. This dcscriplion forms part of our auditor's report. This report is made solely to the charitable company's members, as a body, in a¢ci)rdan¢e with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to tl)e Charitable company's meinbeis those imatters we are TequiTed to state to theTn in an auditor'5 Teport and for no other PUTpose. To the fullest extent pem]itted by law, we do not accept or assume responsibility to anyone other than the charitable cotnpally and the charitable company's members as a body, tor our audit work, for this repori, or for ihe opinions we have fomied. R W Williams Senioi. Statutory Auditor For and on behalf of Appleby & Wood, Statutory AuditOT 40 The Lock Building StTaiford London E15 2QB Date -11-