## **ANNUAL REPORT AND FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2024** **Charity No. 208727** **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **CONTENTS:** ||Page| |---|---| |**REPORT OF THE TRUSTEES FOR THE YEAR ENDED**
**30 SEPTEMBER 2024**|2| |**TRUSTEES’ RESPONSIBILITES IN RELATION TO THE FINANCIAL**
**STATEMENTS**|9| |**INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE**|10| |**GUILD OF BENEVOLENCE OF THE IMarEST**|| |**STATEMENT OF FINANCIAL ACTIVITIES**|11| |**BALANCE SHEET**|12| |**NOTES TO THE FINANCIAL STATEMENTS**|13 – 17| 1 ## **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024** The Trustees present their annual report and financial statements of the charity for the year ended 30th September 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and the Charities Statement of Recommended Practice (second edition) and Financial Reporting Standard FRS 102. ## **Organisation and Trustees** The governing body of the Guild of Benevolence is the Board of Trustees, which is elected by the members of the charity. Members of the Board are the Trustees of the charity. The Board of Trustees meets a minimum of four times per year. The Board forms a sub-Committee or working parties from within its own membership to carry out specific managerial and organisational tasks. There are currently four sub-Committees. The Guild Trustees who served during the year and the dates of their election to or retirement from the Board were as follows: |
oard were as follows:||| |---|---|---| |Prof M J C Crabbe CMarScI FIMarEST|Past Council Member of
IMarEST|**Chairman**| |N Darby BA FCA||**Honorary**
**Treasurer**| |Capt. H B Andrews AFNI||From 12/03/24| |N D Atkinson MNM BSc(Hons) Dip Sys MGT (Open)||From 12/03/24| |P J Blacklock CEng CMarEng FIMarEST|Past Council Member of
IMarEST|Until 12/03/24| |A Campbell OBE JP MNM MSc BA FCMI||| |JG Hindmarch CEng CMarEng FIMarEST||| |Dr S Hussain CEng CMarEng|Council Member of IMarEST,|| |FIMarEST|Trustee of IMarEST|| |R Keuning CEng CMarEng FIMarEST||| |G Lewis|Chief Executive of IMarEST|Until 18/01/24| |C Goldsworthy CEng CMarEng FIMarEST|Chief Executive of IMarEST|From 18/01/24| |M Murphy CEng CMarEng FIMarEST|Hon Treasurer and Trustee of
IMarEST|| |W N Paterson IEng IMarEng MIMarEST|Past Council Member of
IMarEST|Until 12/03/24| |Eur Ing P S Rickaby CEng CMarEng HonFIMarEST|Past President of IMarEST,|| |FCMI|Past Trustee of IMarEST|| |Eur Ing E D Wilson CEng MIMarEST|Council Member of IMarEST,
Past Trustee of IMarEST|| Mr S Clapperton AFNI and Ms J Sawh MSC PGDip HR Mngt PGDip Ship Mngt were co-opted to the Committee during the year. Co-opted members offer their time to help with meeting potential and existing beneficiaries, assisting with branch events, and bringing financial expertise to the committee. 2 **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)** ## **Objectives and activities for the public benefit** The charitable purpose of the Guild of Benevolence aims to assist generally in the relief of hardship for eligible applicants by making either regular grants to supplement very low incomes or by making one-off grants to assist in the purchase of items essential for the recipient’s wellbeing, essential home repairs, and cost of respite care and with debt relief. The Guild of Benevolence also provides guidance over the phone, and where necessary arranging individual visits to claimants offering them help and guidance to solutions related to their individual problems. The Guild of Benevolence is a constituent charity of the Merchant Navy Welfare Board (MNWB), and frequently marine engineers and their dependents, who are in need of help, are referred to the Guild from other maritime charities associated with the MNWB. Potential beneficiaries are also referred to the Guild by the Royal British Legion; The Soldiers, Sailors, Airmen and Families Association – Forces Help (SSAFA Forces Help); The Officers’ Association; Occupational Benevolent Funds Association and local social services departments. Recommendations are also received from IMarEST members who, in the course of their professional or social lives, become aware of hardship cases. The Guild also advertises its services via the IMarEST and directly through the medium of maritime journals and charity directories. ## Objects Clause The Guild of Benevolence exists to provide benevolent services and grant relief to necessitous and deserving persons who are specified under its Rules, namely: - past and present Members of the Institute and past and present Members of the Guild; - marine engineers who possess or have possessed STCW Convention equivalent Management (M) or Operational (O) level Certificates of Competency issued by an IMO White List - recognised national maritime authority; - any individual professionally engaged, now or in the past, in the marine sector as an engineer, scientist or technologist at a level eligible for IMarEST membership as a Fellow, Member or Associate; - the wives, husbands, widows, widowers, partners, children and/or dependants of any of the persons referred to in the preceding. In accordance with the Rules, the Board of Trustees is given sole discretion to decide who are proper subjects for relief and its decision shall be final and binding whether such subjects are covered or not by the descriptions in the Rules and its subrules. The Guild operates for the public benefit under two charitable purposes as defined in the Charities Act 2011, namely: ‘The Prevention and Relief of Poverty’ and ‘The Relief of those in need by reason of youth, age, illhealth, financial hardship or other disadvantage’ by granting assistance to necessitous serving and retired Marine Engineers and Electrical Officers, past and present members and employees of the Institute of Marine Engineering, Science and Technology, the Guild of Benevolence and their dependents by making regular grants to supplement very low income; lump sum grants to assist with the purchase of costly items essential for the recipient’s’ wellbeing and also assist with the costs of essential home repairs, respite care, essential and reasonable funeral expenses in excess of any state contribution and debt relief in accordance with its governing document “The 2024 Rules”. The Charity was originally set up by the Institute of Marine Engineers and the Daily Chronicle Newspaper for the widows and orphans of the Engineering Staff of the Titanic, all of whom perished when the ship sank on 15[th] April 1912. The objectives and performance the Charity undertakes are as valid now as they were when it was first established and are clearly set out in this report. Trustees confirm that they have complied with the requirements of Part 2 Section 17(5) of the Charities Act 2011, having due regard to the public benefit guidance published by the Charity Commission. 3 **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)** ## **Fund Raising Policy** Fundraising is coordinated by the Guild Development sub-committee and managed by the Guild’s Committee of Management without recourse to professional fundraisers or third-party commercial entities. Individuals can become members of the Guild of Benevolence and pay an annual or Life donation. Donations are also received from IMarEST members, IMarEST branch functions throughout the world, companies associated with the marine industry and individuals’ response to the Guild’s advertisements in selected marine publications. The Guild also sustains a regular income through a diversified investment portfolio and is occasionally the beneficiary of a legacy in remembrance of a loved one. Fundraising is presented in the accounts under Income and Endowments. The Trustees are aware of the UK Fundraising Regulator’s Guidance, and are confident in their ability to comply and have received no complaints. ## **Achievements and Grants paid** The Trustees continue to take full advantage of the scheme set up by the Merchant Navy Welfare Board (MNWB) under which a trained caseworker from the Soldiers, Sailors and Airmen’s Families Association (SSAFA Forces Help) will, on request, carry out a home visit on behalf of the Guild. This may be either to help with the assessment of a new applicant, or to review the current circumstances of a regular beneficiary. This is an effective way of ensuring that all regular beneficiaries receive a home visit every three years from either a Guild representative, or a SSAFA caseworker. These home visits have identified several instances where the Guild has been able to provide much needed additional support. The Guild also uses Nautilus Caseworkers to visit new beneficiaries and to help with the annual beneficiary assessments. By the end of the financial year, a total of 44 cases were considered. These included 19 new enquiries. The remainder were existing beneficiaries who receive regular grants as well as several who received a further grant to cover additional requests for help. It should be noted that the Guild Administrator also responds to a wide range of general enquiries and requests for guidance. A review of regular beneficiaries is also carried out annually, with one third being assessed every four months to spread the workload. The total value of grants paid out during the year was £72,261 while the corresponding figure for 2022/23 was £70,868. 24 beneficiaries received a regular grant at the end of 2022/23 and the figure was 26 at the end of the current financial year. All regular beneficiaries received a Christmas bonus of £125 to brighten the festive season. The cost of this benefit totalling £2,875 was funded from the existing funds of the Guild. During the second half of the year, the Guild commenced a new pilot scheme which provides equitable and meaningful support through one-off educational grants of £750, aimed at aiding those pursuing the MCA Certificate of Competency Management Level III/2 in Engineering Knowledge. It also prioritises those applicants demonstrating genuine financial need due to a loss of earnings incurred during unpaid study leave from active service. Whilst only 1 grant was paid during the year, this represents a tangible commitment to helping individuals advance their professional qualifications in maritime engineering, ensuring that financial hardship does not obstruct their progress. The Guild also received notice of 2 new legacies and the Trustees wish to express their gratitude to their relatives for these kind and thoughtful donations. The total value of legacies reflected during the year was £52,000 as compared to £120,000 in 2022/23. Donations decreased, with £9,516 received from members and branches, as compared to £14,450 in the previous year. Notwithstanding, the Trustees are still satisfied that the underlying financial strength of the Guild remains sufficient to maintain both the levels of regular support they currently award and the additional relief payments made in cases of severe hardship. Nevertheless, they realise that some restraint in the value of total grants paid each year may be necessary to avoid an unsustainable drain on resources and take great care to ensure that the limited resources are properly disbursed by providing a sensible balance between the needs of current and future beneficiaries. In addition, the Trustees greatly appreciate the efforts made by members of the Guild and Institute to raise funds on behalf of the Guild at their social functions and other events held throughout the year. 4 **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)** ## **Financial Review** The Statement of Financial Activities (SOFA) on page 11 shows how the Charity obtains its funds and how those funds are used. An analysis of the incoming and outgoing resources of the Guild is disclosed in the Notes to the Financial Statements on Page 15. The SOFA shows that during the year there was a net increase in the Charity’s funds of £389,108 as compared to a £192,910 increase in the previous year. During the year the Guild’s incoming resources were derived from the following main sources:- - Donations & gifts received from Members of the Guild, plus members and branches of the Institute. - Legacies - Interest and income generated by the Guild’s investment portfolio including the rebate of investment manager fees. All of the items listed above gave a total of Incoming Resources for the year of £173,249 as compared to £238,119 for the previous year. Total Support and Administration Costs increased from £82,300 in 2022/23 to £111,706. Details of all costs incurred during the year appear in Accounting Note 4. The Trustees are very conscious of the significant proportion of these costs in relation to the total funds available for charitable purposes and are making every effort to address this issue. Whilst the principal aim of the charity is to disburse funds to those in need, much good work is also done to provide guidance and assist clients in difficulty. Therefore, it is worthy of note that the results of work done by the Guild should not be measured purely in terms of the financial assistance provided. Net gain on Investments was £404,672 compared to a £105,079 increase in the previous year. As at 30th September 2024 the market value of the listed investments was £3,639,140 whereas at the end of September 2023 the portfolio was valued at £3,182,711. The total income and realised and unrealised gains on the investment portfolio for the year appear on the Statement of Financial Activities on page 11. The costs shown in the financial statements do not include the value of the voluntary services provided by Trustees and Guild representatives in the day-to-day work of the Guild. A value for this service is not included as the people who provide it do so at no cost to the Guild. However, if the Charity had to employ additional staff to carry out this work then support costs would increase significantly. The Trustees wish to express their gratitude to all those who contributed to the Guild, especially Members of the Guild and Members of the Institute throughout the world. The committees of several branches of the Institute also supported the Guild with donations from funds raised at their social events. Companies and members of the public also made donations to further the work of the Guild. ## **Investment Policy** The Trustees of the Guild of Benevolence have appointed Sarasin and Partners LLP (Sarasin) to independently manage the Guild’s investment portfolio. Sarasin act on a discretionary basis within guidelines agreed with the Honorary Treasurer and the other Trustees in furtherance of the objectives of the Guild. In essence, the investment managers are expected to achieve the best return on the portfolio, subject to acceptable risk. As the Charity awards grants, both regular and one off, to beneficiaries, there is a constant need for external income to minimize the amount of investment income drawn from investments to ensure adequate grant funds are available whilst maintaining a healthy investment capital into the future. The principal investment vehicle for our funds is the Sarasin Endowments Fund Class A INC which is a Charity Authorised Investment Fund and has the benefits of being overseen by the Charity Commission. It also has the tax benefits of being a registered charity and the ability to have an independent advisory committee representing unitholders. Additionally, the CAIF structure includes improved regulatory oversight from the FCA and an exemption from VAT on fund management fees. 5 **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)** ## **Investment Policy (continued)** During 2024, in conjunction with the Finance and Investment Committee of IMarEST, the Trustees conducted a benchmarking exercise of Sarasin together with 3 other charity discretionary investment managers operating multi-asset funds, to determine whether the best performance is being achieved and whether this is in alignment with the Guild’s objectives. Following this extensive review, it was recommended that the Guild continue to use Sarasin and Partners LLP as its investment manager for the next five years, when a further review would take place. ## **Investment performance** In the period under report the market has been buoyant although still both challenging and volatile. Regular income generated from the Endowments Fund has been £110,398 as compared to £102,469 in 2022/23 and has continued to provide sufficient funds to enable the Guild to maintain its level of grant making. The value of the investment portfolio has grown at the end of financial period at £3,639,140 as compared to £3,182,711 in 2022/23, an increase of £456,429 (14.3%). During the year, our investment managers have increased the exposure to equities whilst reducing exposure in bonds and cash, keeping property and alternatives broadly unchanged as follows; |**Asset Class**|**Benchmark**|**Last**|**This**|**Change**|**Comment**|**Return**| |---|---|---|---|---|---|---| |||**year**|**year**|||| |Fixed Income|15%|16%|11%|-5%|Reduced in favour of equities|+10%| |Equities|70%|67%|74%|+7%|Increased|+19%| |Property|5%|4%|4%|-|Broadly unchanged|+2%| |Alternatives|10%|9%|9%|-|Broadly unchanged|+8%| |Cash|0%|4%|2%|-2%|Reduced in favour of equities|+5%| Sarasin’s remain positive that their balanced portfolio is well positioned in global leaders. Over the past 12 months, the portfolio has achieved a Total Return of +16.5%, well ahead of the longer-term UK CPI +4% target, which has risen by +6.4%. Performance has also been strong against the peer group, the ARC Steady Growth index, which has recorded an increase of +13.3%. Bearing in mind the volatile global economic situation, the Trustees remain concerned with the level of income generated and in the value of the investment portfolio. However, they continue to have confidence in the investment managers and their response to the economic situation. ## **Risk management** The principal risks faced by the Guild lie in the performance of investments and operational risks from ineffective grant making and the capacity of the Guild to make effective grants. The trustees consider variability of returns on its Investments to constitute the charity’s major financial risk. This is mitigated by retaining expert investment managers and having a diversified investment portfolio. The risk of effectively making both one-off and annual grants is mitigated by a process involving an initial review performed by the Relief sub-committee as well as an annual review process. Both of which are then reviewed by the full Board of Trustees every quarter. A full-time member of staff is also employed to assist in this matter. 6 **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)** ## **Reserves policy** There are two fundamental objectives which the Guild’s reserves should aim to achieve: - a) Firstly, there is the ongoing aim to continue to pay regular grants for the foreseeable future - b) Secondly, there is the need for funds to support the current work of the Guild in assisting new applicants and ensure that this work will continue in the long term. At 30th September 2024 the free reserves available for this work stood at £3,653,731 an increase of £389,108 when compared to the £3,264,623 as at the end of the previous financial year. For many years the Guild’s expenditure has significantly exceeded income. This is only acceptable when, over a reasonable period, the investment portfolio achieves a balancing capital growth to be realised to provide additional income. To this end every effort is being made to minimise non-essential administration costs ## **Plans for the Future** The Trustees consider it their primary duty to deliver true public benefit in the long term and maintain a proper balance between the needs of current beneficiaries and the needs of future beneficiaries. The Trustees are also fully aware of - the effects of the Cost-of-Living Crisis on both young and old - an increasing aging population - continued adverse changes in Welfare Benefits - the continued uncertainty in the world’s economies and - new beneficiaries being restricted because of ignorance about the existence of the Guild or their reluctance to seek help from charitable institutions. With the above in mind, during 2024 the Trustees appointed a new Guild Development Manager whose objective is to widen the Guild’s profile, increase its funding as well as seek future beneficiaries. Initial focus to-date has included the following - re-engage and renew the relationships and partnerships of the Guild - the provision of educational grants aimed at helping individuals to advance their professional qualifications in maritime engineering, ensuring that financial hardship does not obstruct their progress. - a number of Mental Health initiatives focused primarily on serving Seafarers The Trustees also continue to encourage the recruitment of new trustees to ensure that the Charity remains relevant to the present and future needs of beneficiaries. In this respect, they believe they have been successful with a number of new trustees recruited again in the year under review. ## **Structure, governance and management** The Guild of Benevolence of The Institute of Marine Engineering, Science and Technology is a charity registered under number 208727 and was created by a Declaration of Trust. The governing instrument is the current set of the Rules of the Guild of Benevolence. The Charity, which was registered as a Charity on 26 June 1969 is governed by a set of Rules, which were originally written in May 1958. Since then, the Rules have been updated and the most recent set are contained in a booklet called “The 2024 Rules”, which were approved by the members of the Guild in general meeting on 12 March 2024. Copies of the Rules are available from the Hon. Secretary at the address on page 2. The Charity is managed by the full Board of Trustees, which comprises all the Trustees. The Board normally meets every quarter. The Relief sub-committee of seven trustees has delegated powers to grant relief in cases of emergency between board meetings. Other sub-committees that report to the full Board of Trustees are the Finance, Guild Development and the Governance and Audit sub-committees. A full-time member of staff employed by the Charity attends and assists the full Board of Trustees and its sub committees. Some assistance is also rendered by officers of the IMarEST for which the Charity pays a fee. 7 **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 (continued)** ## **Structure, governance and management (continued)** Trustees for the Charity are drawn from the membership of the Guild of Benevolence usually by word of mouth, but also from the publicity that the Charity receives via IMarEST publications. The Secretary and Honorary Treasurer of the IMarEST are ex-officio Trustees of the Guild. Trustees are elected by the members of the Guild in general meeting for a period of three years after which they are eligible for re-election for a further period of three years. Retiring trustees are then obliged to stand down for one year. The Honorary Treasurer is elected to an initial term of three years, after which he is eligible for re-election to a second term of three years. Following this, he can be re-elected on an annual basis to a maximum of twelve years’ total service as Honorary Treasurer. To be effective in office, Trustees of the Guild need a good understanding of the role and responsibilities of a charity trustee and must be aware of the legal rules on eligibility that govern such an office. All new trustees have their duties and legal, financial and managerial responsibilities and liabilities explained to them. They are informed about the Guild, its vision and values, its aims, programmes, sources of income, and the context in which it operates. They are also provided with a copy of the Guild’s governing document. All this is adequately covered in the ‘Reference Handbook for Trustees,’ a copy of which is held by each trustee. The Handbook is designed to provide trustees with sufficient information to enable them to take an active part in the work of the Guild and to contribute to discussions at meetings of the Board of Trustees. However, it is important for trustees to keep abreast of developments within the charities sector, and in particular, changes to legislation. Trustees are, therefore, required to attend relevant training conferences and seminars, particularly those conducted by the Merchant Navy Welfare Board. This is supplemented by in-house training should the need arise. ## **Voluntary services received from the Trustees** None of the Trustees received any remuneration during the period although some may have borne a measurable and quantifiable cost because of the time they donated to the Charity. Expenses only are paid to the trustees when they are claimed and, during the year under review in this report, expenses amounting to £446 were reimbursed (2023: £112). All Trustee meetings are online virtual meetings. The costs shown in the Financial Statements do not include the value of the voluntary services provided by Trustees and Guild representatives in the day-to-day work of the Guild. A value for this service is not included as the people who provide it do so at no cost to the Guild. However, if the Charity had to employ additional staff to carry out this work, the cost would be very significant. Trustees also give their time to visit Branches and beneficiaries of the Guild wherever they can to assist in the generation of funds for the Guild or offer help and guidance to claimants, respectively. ## **Relationship with the IMarEST (“the Institute”) and other charities** The Guild of Benevolence has a close working relationship with the Institute, which is an independent Charity. The Guild has certain charged services provided to it by the Institute. The charges made by the Institute during the year under review are included as part of Support Costs and Administration Costs in Note 4 to the Financial Statements on page 15. Whilst two of the Trustees are members of the Guild’s Board of Trustees by virtue of the offices they hold with IMarEST, the Institute has no overall control of the Guild. In pursuance of its Objects, the Guild of Benevolence has working relationships with other charities, in particular the Merchant Navy Welfare Board (MNWB) and their constituted charities and through them to the Soldiers, Sailors and Airmen’s Families Association (SSAFA), and the Seafarers’ Advice and Information Line (SAIL). 8 The Guild of Benevolence of the Institute of Marine Engineerin& Science and Technology Annual Report and Financial Ststements for the year ended 30 September 2024 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 continugd Reference and administrative infommtion Registered Office and Addr¢ss 18irdcage Walk. London SW1 H 9JJ. Telephone.. +4410)20 7382 2644 Email.. uild Imarestor Legal Structure and eharity number The Guild of Benevolence ofThe Inst¢tute of Marine Engin*ring, Science and Technology i8 a charity registered under number208727 and was created by a Declaration of Trust The goveming instrtjmenl is the current set of the Rules of the Guild of Benevolence. Inde ndgnt Examiner Trevor James FCA DChA FCIE was ap[￿nted as indepernjent examiner on 26 November 2024. Trsibilities in relatlon to the financial statements The Tnjslees are responsible for preparing a trustee5' annual report and fin8nck81 statements in accordance wtth applicable faw and United Kingdom ALcounting Standards {Uniied Kingdom Generally Accepted Accounting Practtce). The law applicable to charthes in EngLAnd and Ivales requires the charity trustees to prepare financial statements for each yearwhich gNe a true and fair view of the state of affairs ofthe charity and of the incoming resources and applic3tion of resources, ofthe chanty for that peri&J. In weparing the financkgl ststements, the Trustees are required to.. select suitable accounting WI￿leS and then appty them consistenuy.. observe the methLids and principles in the applrabk charib.es SORP" make judgements 2nd estimates that are reasonable and prudent., stste whether applicable accounb.ng standards have been followed, subiect to any mateTial departures that must be disdosed and explained in the financial staten*nts" prepare the financK41 state￿ents on the going concEm basts unless it is inappropTiate to presume that the charity will o)ntinue in busirsess. The Trustees are restKJnsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial po5thn of the charity and lo enable them to ensure that the financial statemersls comply with the Charittes Act 2011, the applirable Charsties {knunts ?nd Reports) Regulations, and the provisions of the Tnjsl deed. They are also responsible for safeguarding Ihe assets of the charity and taking reasonable steps for the prevention and detecti￿ of fraud and other irreguLarities. The Trustees are responsible for the maintenance and lnt￿Jrtty of the charity aTrJ financial infofmatton included on the charity's website in accordance with legrslatK)n in the Unit&Y Kingdom go¥eming the préparation and dissemination of financial statements. This report has been approved by the Trustees on 20 December 2024 and signed on their behalf by.. J>, James Crab Chairman Neil Datt)y Honorary Treasurer Dated.. 20 December 2024 The Guimd of Benevolence of the Institute of Marine Engineering, Science and Technology Annual Report and Financlal Statements for the year ended 30 Septem￿1 2024 Indop•ndont èxamSnèr'8 r•port to tho tru8t••8 of th• Gulld ol B•n•volMc• of the In8tltutfj ol Marin• Englnoorlng, 8clenc• and Tochnology I report lo the charity Tru8te88 on my examinalitsn of the arxounts of the charity for Ihe year ended 30 September 2024. R•8pon81bllltlo8 and ba818 of r•port As the Trustees of the Charity, you are responsibl• the preparation of the accounts in accordancè wllh the reqU1￿ments of the Ch8ritr98 Act 2011 Ilhg A¢t'l. I reFQrt In re8pect of my examination of the charty'8 accounts carrled out under 88ct4on 145 of the 2011 AGI. and in carrying out my examination I have follcwed all the applicable Direction8 given by the Ch8rity Commission under section 14515llbl of the Act. Indop•nd•nt •xomln•r'0 statement I have completed my examination. l ¢￿f4m7 Ihal no material m8tter$ h8ve ¢ome lo my 8ttenlion in connection with my examination giving me cause lo believe that in any m8terial respect.. - accounting records were not kept in respect of the charity a8 requirod by section 130 of the Act.. or - Th8 account8 do not accord wllh th08é record8', or the accounts do not comply with the applicable requiremen18 concerning the form and conlenl of accounts 8el out in tho Charitses (Acwunls and Reports) Regulations 2008 other than any requirement that the 8ocounts give a 'lrue 8nd fair view. which 18 not 4 matter con8ider8d a8 Part of an ind8p8ndent oxarnination. I have no concerns and have come acr058 no other matters in connection with Ihe examination lo wh￿￿ attention should be drawn In thi$ raport in ord8r to enable a prO￿r undersl8ndlng of the ac(XJunts to be reached. Slgn•d'. Trevor James FCA DChA FCIE 10 ## **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **STATEMENT OF FINANCIAL ACTIVITIES for the year ending 30 September 2024** |**STATEMENT OF FINANCIAL ACTIVITIES**
**for the year ending 30 September 2024**||| |---|---|---| |**Notes**
**INCOME AND ENDOWMENTS**
Donations, Membership & Legacies
**2**
Investment Income
**3**
**TOTAL INCOME**
**EXPENDITURE**
Raising Funds
**4**
Charitable activities
Grants paid to beneficiaries
**4**
Cost of providing the charitable activities
**4**
**TOTAL EXPENDITURE**
**Net income available for charitable purposes**
Movement in liability for regular grants
**9**
Net Gain/(Loss) on Investments
**Net income / expenditure**
**RECONCILIATION OF FUNDS**
**Fund balances at 1 October 2023**
**FUND BALANCE at 30 September 2024**|**Total Funds**
**30 Sep 2024**
Unrestricted
**£**
62,851
110,398
**173,249**
1,924
72,261
109,782
**183,967**
**(10,718)**
(4,846)
404,672
389,108
**3,264,623**
**3,653,731**|**Total Funds**
**30 Sep 2023**
Unrestricted| |||**Restated**
£
135,650
102,469| |||**238,119**| |||1,906
70,868
80,394| |||**153,168**| |||**84,951**
2,880
105,079| |||192,910| |||**3,071,713**

**3,264,623**| All incoming resources and resources expended derive from continuing activities. The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 13 to 17 form part of these financial statements. 11 The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology Annual Report and Financial Statements for the year ended 30 September 2024 BALANCE SHEEr forthe year ending 30 September 2024 Not•s Total Funds 30 Sep 2024 unrestn.cted Total Funds 30 Sep 2023 Unrestricted Fixed assets Invesknents 3.639,140 3.182,711 Total fixed assets 3,639,140 3,182,711 Current assets Debtors Cash at bank 60.485 26.346 45,000 91,128 Total current ￿ets S6￿31 136,128 Llabllitles Creditors.. Arr￿Unts falling due within one year Net Gurront assets 18,167 4,989 131,139 Total assets less current liabilities 3.707A04 3,313,850 Provision for liabilities and chary Grants payable 54.073 49,227 Net assets 3.653,731 3.264,623 The fvnds of the tharity Unrestricted income fund8 General funds 3.653.731 3.264,623 Total charity fitnds 3ffj53,731 3.264,623 The finanual statements were approved by the undersigned on behalFof the committee on the dates shown. The notes on pages 13 to 17 form part of these finanaal statemeftts. James Crabbe Chairman Neil Darby Honorary Treasurer Date.. 20 Decemter 2024 12 **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **NOTES TO THE FINANCIAL STATEMENTS** ## **1. Statement of Accounting Policies** ## **i. Basis of Accounts Preparation** The Financial Statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2015) issued in Sept 2015, applicable Financial Reporting Standards in the United Kingdom (FRS 102) and the Charities Act 2011. The Trustees have taken advantage of the disclosure exemption within update bulletin 1 not to produce a cash flow statement. The statements have been prepared under the historic cost convention, with the exception that investments are included at market value. The Charity constitutes a public benefit entity as defined by FRS 102. The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. ## **ii. Incoming resources** All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received, and the monetary value can be measured with sufficient reliability. - Donations are recognised as soon as there is entitlement, and the amount is measurable, and the receipt is probable. Monies include Gift Aid based on the amount recoverable at the accounting date. - Pecuniary Legacies are recognised when probate is in place or when a cash payment has been received. - Residuary legacies are recognised when probate is granted, a copy of the will has been received to confirm the Guild's entitlement, and there is sufficient information to value them. - Reversionary interests involving a life tenant and contentious legacies are not recognised. - Income from investments is accounted for when received. Income from donations and grants is restricted in the following cases: - when donors impose conditions, which have to be fulfilled before the charity becomes entitled to use such income; the income is deferred and not included in incoming resources until the preconditions for use have been met. ## **iii. Resources expended** Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Trust. ## **iv. Accounting Estimates and judgements – Grant Provision** In preparing the accounts, the Trustees are required to make estimates and judgements for any uncertainties that could impact the amounts reported. In doing so the Trustees have made assumptions as to the amount of provision that needs to be made for grant payments to beneficiaries. This provision is based on the actual quarterly grants paid in September, annualised for the year ahead. All cases are reviewed annually. ## **v. Irrecoverable VAT** The Guild is not registered for VAT and all VAT incurred on expenditure is charged against the category of resources expended for which it was incurred. 13 **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **NOTES TO THE FINANCIAL STATEMENTS** (continued) ## **vi. Allocation of overhead and support costs** Overheads and other costs that are not directly attributable to functional activity categories are apportioned over the relevant categories based on management estimates of the amount attributable to that activity in the year. The allocation of overhead and support costs is analysed in Note 4. ## **vii. Governance costs** Governance costs comprise the costs of running the charity, including strategic planning for its future development, also independent examination costs, and any legal advice for the Board. All the costs of complying with constitutional and statutory requirements, such as the costs of the Trustees’ meetings, and of preparing statutory accounts and satisfying public accountability, are also included. ## **xiii. Investments** Investments in stocks and shares are stated at bid-market price at the balance sheet date. Realised and unrealised gains on investments during the year are taken to the fund in which the investments are held. ## **ix. Realised gains and losses** All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year-end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities. ## **x. Debtors, cash, and creditors** Debtors – Trade and other 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. 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. Creditors and provisions – Creditors and provisions are recognised where there is 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 and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 14 ## **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **NOTES TO THE FINANCIAL STATEMENTS** (continued) ## **2. Donation & membership income** |Donations
Membership
Legacies
Total Donation & membership income|**2024**
**Total**
**£**
**2023**
**Total**
**£**
9,516
14,450
1,335
1,200
52,000
120,000| |---|---| ||62,851
135,650| ## **3. Investment income** |Dividends from Listed investments
Interest on cash deposits
Investment Managers' fees (see Note 5)
Total investment income
**4. Resources expended**
**Grants paid to beneficiaries**
Beneficiaries in the period
**Support costs**
Establishment costs (occupancy of offices)
Direct staff costs
Other Staff costs
Insurance
Trustees’ costs & meeting expenses
Postages & telephones
Printing & stationery
Subscriptions/Advertisements
Sundry expenses
Independent Examiners fee
Bank charges
**Total Support costs**
**Total Resources Expended**|**Investment**
**Management**
**Grant**
**making**
**£**
**£**
-
72,261
1,400
26,600
- 76,415
-
576
23
445
-
446
- 288
- 1,074
-
1,937
145
579
240
960
116
463|**2024**
**Total**
**£**
**2023**
**Total**
**£**
**Restated**
97,842
93,867
4,206
328
8,350
8,274| |---|---|---| |||110,398
102,469| |||**2024**
**Total**
**2023**
**Total**
**£**
**Restated**
**£**
72,261
70,868
28,000
12,400
76,415
53,488
576
7,448
469
403
446
174
288
183
1,074
1,168
1,937
705
723
3,182
1,200
2,600
578
549| ||**1,924**
**109,782**|**111,706**
**82,300**| |||**183,967**
**153,168**| ||**1,924**
**182,043**|| All grants are made either direct to individuals, or via charitable agencies, to those who are deemed by the trustees to be necessitous and deserving persons in accordance with the objectives of the charity. The majority of governance costs have been allocated to grant making, as this is where they spend most of their time. 15 ## **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **NOTES TO THE FINANCIAL STATEMENTS** (continued) ## **4. Resources expended (continued)** Support and administration costs are allocated to the relevant activity based on management estimates of the amounts attributable. The charity does not have any lease commitments as it uses space at the office of The Institute of Marine Engineering, Science and Technology. During the period under review the Guild of Benevolence was managed on a day-to-day basis by the Chairman of the Guild, the Honorary Treasurer, and other Trustees. None of these Trustees received any remuneration during the period and they were not required to bear a measurable and quantifiable cost because of the time they donated to the charity. However, legitimate expenses are paid to the Trustees when they are claimed and in the period under review. In 2024, 2 Trustees claimed expenses (2023: 2). ||**2024**|**2023**| |---|---|---| |Trustees’ expenses|£446|£112| Clerical assistance to complement the voluntary and unpaid work done by the Trustees is provided by a full time Administrator. In addition, the Institute provides financial and other administrative support services. ## **Volunteer contributions** During the year the charity received no small donations from its Trustees (2023: Nil) |**5. Investments**
As at 1 October 2023
Additions to investments at cost
Disposals at cost
Unrealised gains
**As at 30 September 2024**|**Investment**
**property**
**£**
875
-
-
**875**|**Listed**
**investments**
**£**
3,154,640
6,143
404,672
**3,565,455**|**Cash held**
**within the**
**investment**
**portfolio**
**£**
27,196
118,553
(72,940)
**72,809**|**2024**
**Total**
**£**
3,182,711
124,697
(72,940)
404,672| |---|---|---|---|---| |||||**3,639,140**| The following investments are considered material in the context of the investment portfolio at 30 September 2024: |The following investments are considered material in the context|of the investment|portfolio at 3| |---|---|---| |Name of holding
Sarasin Endowments Fund Class A INC|Market value
£3,565,455|Percentage| |||98.04%| The Guild opened a Liquidity Account with Sarasin during the year. At 30 September 2024, the balance was £70,590. The Guild Investment continued to receive rebates for its management fees, total of £8,350 for the period ending 30 September 2024, (2023: £8,274). Rebates for Investment Managers' fees were previously disclosed in 2023 as a reduction to Support Costs and has since been restated as Investment Income. 16 ## **The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology** Annual Report and Financial Statements for the year ended 30 September 2024 __________________________________________________________________ ## **NOTES TO THE FINANCIAL STATEMENTS** (continued) |**6. Debtors and prepayments**
Debtors
Prepayments
Legacies receivable
All debtors are due within one year.
**7. Creditors due within one year**
Creditors
Accruals|**2024**
**Total**
**£**
125
360
60,000
**60,485**
**2024**
**Total**
**£**
16,433
1,734
**18,167**|**2023**
**Total**
**£**
-
-
45,000| |---|---|---| |||**45,000**| |||**2023**
**Total**
**£**
1,143
3,846
**4,989**| ## **8. Related Party** The Institute of Marine Engineering, Science and Technology have charged £28,000 to the Guild of Benevolence during the year (2023: £18,800). This charge relates to the provision of administrative support and office space by the Institute. ## **9. Liability for Future Regular Grants** All regular grants are reviewed individually every twelve months and any new or continuation of existing grants is based on the annual review and made at the sole discretion of the Trustees. Although there is no legal requirement to continue any grant, the Trustees recognise that to accommodate any expectation in the minds of the beneficiaries and to accommodate a notice of termination of a regular grant, have therefore determined the potential liability for regular recipients to be £54,073 (2023: £49,227). 17