2020-12-31-accounts

The Royal Alfred Seafarers’ Society Annual Report 2019

Caring for seafarers for more than 150 years

Welcome

H.R.H. The Princess Royal

The 2019 Annual Report for The Royal Alfred Seafarers’ Society

Head Office, Weston Acres, Woodmansterne Lane, Banstead, Surrey, SM7 3HB

IMAGE CREDITS:

FRONT COVER: D-Day veterans Lieutenant Commander Geoffrey Haskins, Légion d’honneur, and Robert Ball, Légion d’honneur, honour their fallen comrades at 2019’s D-Day commemorations

Telephone: [phone] Email: [e-mail] Facebook: Royal Alfred Seafarers Twitter: @RASeafarers

IMAGES THROUGHOUT: Our gratitude goes to Gary Davies of Maritime Photographic for kindly supplying some of the maritime images featured in this report. For more information and to browse his full collection, please visit www.maritimephotographic.co.uk

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Chairman’s Introduction

I am very pleased to report that this was another successful year for the Society, and we achieved our

local school children, who have come in to

We bade farewell, on his retirement to West Sussex, to our Honorary Chaplain, Reverend Art Barron, after many years of faithful service to our community, and are delighted that the Reverend Canon Bill Christianson, a former Secretary General of the Mission to Seafarers, has agreed to take up this position once he has obtained the permission of the Bishop of Southwark.

The Royal Alfred continues to be well served by Definition, our PR and advertising professionals from Leeds. We have been shortlisted for more awards within Surrey and nationally whilst our website and social media presence continues to provide an up-todate perspective of the care we provide.

We are also fortunate to have monthly quality assurance inspections by Care Homes Consultant Rob Fawcett. Clinical governance is of the utmost importance and these regular inspections demonstrate compliance with the regulations of the Care Quality Commission and the Health and Social Care Act(s) and so much more. Rob and his wife, Angie, decided to retire in December so we thank them for their unstinting service to the Society for the last seven years. The value of their quality assurance was amply demonstrated by the overall Good rating the Society received after the Care Quality Commission’s unexpected inspection.

RESIDENTS AND STAFF MARK REMEMBRANCE SUNDAY

HRH THE PRINCESS ROYAL ARRIVING AT THE AGM

I am most grateful to the Trustees for making my succession as Chairman a seamless transition from the tenure of Captain Duncan Glass with no resignations or retirements. We welcomed two new Trustees at the Annual General Meeting in 2019, Mr Bernie Watson (Honorary Treasurer) and Captain Steven Clinch, who have brought their respective expertise to bear most effectively in the financial and risk assessment areas. It was also fitting that former trustee, Commodore Ian Gibb MBE MNM, was elected as a Life Member at the AGM. Sadly, the Pension Fund lost a Trustee due to the unexpected and sudden death of Mr John Neads who had served the Fund for many years. His knowledge of pension legislation and even more importantly our pensioners will be greatly missed.

In conclusion, I wish to thank our Patron, HRH The Princess Royal, for her ongoing support of the Society’s work which was amply demonstrated by honouring us with her presence at last year’s AGM, presenting Captain Glass with his Vice President’s Certificate, and speaking with everyone, over 100 guests, during the luncheon. We are fortunate indeed to have a Royal Patron who keeps a weather eye on our delivery of care to our community.

Lieutenant Commander Philip Wake OBE RD* MSc FNI RNR

Chairman (Signed On Original)

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Foreword

CHIEF EXECUTIVE OF THE ROYAL ALFRED SEAFARERS’ SOCIETY, COMMANDER BRIAN BOXALL-HUNT OBE

As I write this much-shortened Foreword summarising The Royal Alfred Seafarers’ Society’s activity for the last Financial Year ending 31 December 2019, the nation is in the grip of the COVID-19 pandemic, and we at the Weston Acres site are working hard daily to keep our service to residents and tenants safe and effective.

Whilst doing so, it is still possible for me to look back at 2019 with huge satisfaction, not least as we accommodated every seafarer who came to us and qualified for our help, and still balanced the books with a very small surplus. Financial assistance from main maritime charities is key to our ability to keep subsidising those seafarers not able to pay the full cost of care, and ensure our quality of care is high; as we currently draw down on reserves to weather the present difficulties, more help will be crucial to our eventual recovery.

Of course, much else was achieved and I know that the new Chairman, Philip Wake, whom I am delighted to welcome on behalf of the staff, has covered a good deal more in his introduction.

ROBERT BALL, CDR BRIAN BOXALL-HUNT, LIEUT CDR GEOFFREY HASKINS ON D-DAY IN 2019

THE AGM UNDERWAY LED BY OUR PATRON HRH THE PRINCESS ROYAL

If I were to list my own key points of the year, amongst a plethora my top four would have to be: welcoming our Patron to the Annual General Meeting, the smooth transition of Chairmen, achieving a Good overall from the Care Quality Commission unexpected inspection and, perhaps my favourite of all, the commemoration of the 75th anniversary of the D-Day Landings.

For the latter, I felt a real sense of privilege in accompanying our two D-Day veterans to Portsmouth, Geoffrey Haskins and Robert Ball, the former who was a Midshipman RN in the bombarding warships off the beaches and the latter a Merchant Navy officer in shipping supplying stores and soldiers for the invading forces. En-route to the concert sung and told by schoolchildren and masterminded by Geoff’s talented grandson, we stopped in the village of Southwick which housed the Allied Forces high command, and studied the wall map room left intact from those days.

So, let me finish this necessarily shortened Foreword by returning to the situation we find ourselves in whilst writing it. At the time of writing, the pandemic still has weeks to run yet in our country, and there will undoubtedly be sad moments and difficult challenges yet to come.

CLLR DOROTHY ROSS-TOMLIN, HER HUSBAND AND HRH THE PRINCESS ROYAL AT THE AGM

I thus wish to sign off by paying my own personal tribute to the key staff at Belvedere House, and all of those who have supported them so far in the most difficult of circumstances. With some staff members necessarily isolated at home, the burden of keeping our service connected to those in our care has fallen on the remainder; to the Home and Business Managers, Heads of Department and every member of the team who has stepped up and helped across all departments wherever needed, I salute and sincerely thank you and feel privileged to be your Chief Executive.

At this stage, it is impossible to foretell how rough our passage through the stormy waters will be, but I am confident that I will be able to record in the next edition of our Annual Report, the one written this time next year, that everyone in the Royal Alfred Seafarers’ Society did their very best in 2020 – and their duty.

Commander Brian Boxall-Hunt OBE FNI Royal Navy Chief Executive (Signed On Original)

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Life at The Royal Alfred Ii. li 08 09

----- Start of picture text -----
Our Year in Numbers
600,000 10%
Increase in
Hours of Care Provided
Visitors to
Countless Smiles & Laughs Shared… the Website 526 Years
of Dedicated Collective
Service Between our
Staff to The Society
75th
69
Royal
Anniversary of the
New Facebook Likes Visitor D-Day Landings
Pieces of
Reduced Media
Electricity 52 Coverage
15% Usage 74,000
Fewer Single-Use
Plastics Used More Than
103
Members of Staff
Reduced 1,000
Gas Hours of Training
20% Usage
----- End of picture text -----

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Our People – Caring for Seafarers

The 154th Annual Report

THE BOARD

Members and Officers

Patron

HRH The Princess Royal

Vice-Patron

The Earl of Inchcape 1994

President

The Viscount Cobham (Trustee from 2008) 2015

Vice-Presidents

CAPT. A.D. Braithwaite OBE RD RNR (Trustee From 1976) 2013 CAPT. Sir Malcolm Edge KCVO FNI 1988 CAPT. D.C. Glass OBE MNM (Trustee From 2003) 2019 D.M. Gundry JP FCIPD FICS (Trustee From 1990) 2017 J.A.H. West (Trustee From 1970) 2000

Hon. Treasurer

B.A. Watson FCA Dip ChA 2019

Trustees And Members Of The Board Of Management

Chairman

LT CDR P. Wake OBE RD* MSc FNI RNR (Trustee From 2012) 2019

Vice Chairman

CAPT. A. McCourt (Trustee From 2015) 2019

Other Trustees

CAPT. S. Clinch 2019 Mrs E.A. Gibb BEM 2006 CDR S.E. Lochner JP DL RN 2017 A. Parker 2014 Dr R.D. Reubin 2005 Cllr Mrs D.A. Ross-Tomlin 2008

Hon. Treasurer

B.A. Watson FCA Dip ChA 2019

Co-Opted Visiting Committee Members CAPT. M.R. Lowle Mrs D.M. Parker P.E. Seager MA ACIB

Pension Fund Trustees

P. G. Dawes Ll. B FCIS FRSA Ms B.A. Kasey RGN RMA DIPHE J. Neads FCIS FPMI MCMI (Deceased 24.10.19)

Chief Executive

CDR B.P. Boxall-Hunt OBE FNI RN

Honorary Chaplain The Reverend A. Barron (Retired 3.4.19)

Life Members

CDRE I. Gibb MBE FNI FRSA FRGS MNM Captain M.R. Lowle

----- Start of picture text -----
Registered as a Charity No. 209776
----- End of picture text -----

Welcome to the 154th Annual Report and Financial Statements of The Royal Alfred Seafarers’ Society for the year ended 31st December 2019.

This Annual Report presents the Society’s audited Financial Statements for 2019 and summarises its activities during that year. It is laid out in accordance with the new Charities Statement of Recommended Practice (SORP) guidelines. Besides advising subscribers and donors how their benefactions have been put to use, it describes, for the information of all those concerned with the welfare of seafarers, the establishment administered by the Society for the benefit of retired seafarers and their dependants.

WHERE IT ALL HAPPENS – PROVIDING A SAFE HAVEN FOR SEAFARERS IN THE LEAFY ENVIRONS OF THE SURREY COUNTRYSIDE

At the time of signing these accounts and report, three months after the end of the Financial Year 2019, the nation is in the grip of the COVID-19 pandemic; it is thus pertinent to add here that the Society will be affected, but to an as yet unknown degree. The statement on “Going Concern” made later in this report is thus reinforced since we shall be deploying our substantial reserves as necessary to continue meeting our Royal Charter objectives.

Limited quantities of previous Annual Reports are available upon request. The most recent Reports can also be viewed and downloaded at royalalfredseafarers.co.uk

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Operations

Management and Objectives of the Society

Belvedere House & Weston Acres House

Weston Acres, Woodmansterne Lane, Banstead, Surrey, SM7 3HB

Telephone: [phone] Email: [e-mail] Fax: [phone]

Registered Home Manager:

Miss B. A. Kasey RGN RMA DIP HE

Business Manager: Mrs. Karen Goddard

Medical Officer Retained: Dr. L. A. Nathan

Head Office

Weston Acres, Woodmansterne Lane, Banstead, Surrey, SM7 3HB

Telephone: [phone] Email: [e-mail] or [e-mail] Website: royalalfredseafarers.co.uk

Auditors:

Haysmacintyre

Actuary:

M.L. OWEN

PR Marketing Agents:

Definition

The Royal Alfred Seafarers’ Society is a registered charity incorporated under Royal Charter. As stated in this Royal Charter, the objects of the Society are:

a) To provide, carry on or maintain a Home or Homes

b) To act as trustee or almoner for granting relief

Lawyers:

Wedlake Bell LLP

Investment Managers:

Rathbones

Accountants:

Menzies

OUTGOING CHAIRMAN, CAPTAIN DUNCAN GLASS, AND NEW CHAIRMAN LIEUTENANT COMMANDER PHILIP WAKE, WELCOME CLLR DOROTHY ROSS-TOMLIN TO THE AGM

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List of Subscribers

How the Society is Meeting its Current Objectives

HMS BIRMINGHAM AT SPEED ESCORTING BRITISH MERCHANT SHIPS IN THE PERSIAN GULF

The Society, then known as The Belvedere Institution, had as its original objectives in 1865 the maintenance of establishments for the care of aged and infirm merchant seamen and the provision of grant assistance to those living in the wider community and in need of help.

The grant-making function has been in abeyance since 1996, when our remaining beneficiaries were passed to the Shipwrecked Mariners’ Society. Although the care of seafarers and their dependants is at our core, the present Royal Charter gives much wider latitude as to who may be admitted to our Homes and Housing.

As our raison d’être thus remains, of course, the care of seafarers and their dependants, it is incumbent upon the Board of Management to ensure that our Homes and Housing are available to all such persons, irrespective of their financial situation, who fit the current necessary criteria.

For some years now our facilities have maintained seafarer numbers at a substantial proportion of around two-thirds of the total complement, and this is now regularly around 90 per cent, reaching 96 per cent towards the end of 2018. During the year 2019, a total of 118 men and women were accommodated permanently in the Home and Housing, of whom 108 qualified as seafarers.

It is our aim to not only maintain the usual high proportion of seafarers in our care, but to actually increase it as much as possible. We realise that to do so will require the Society to maintain its high standards of care and extend its profile within the seafaring and ex-service community; to this aim a marketing strategy and plan are used as a guide. Assisted by our marketing and advertising agent, Definition, this plan regularly delivers solid success.

The Society has a strategic plan from which a rolling five-year business and financial plan is derived and updated. Our strategic vision is to maintain the Weston Acres site, meeting current demands, whilst exploring options for providing care and accommodation services in other more traditional seafaring locations nationwide.

The Society is most grateful to Her Majesty and our other subscribers listed below:

~~W~~ & R Barnett Limited Royal Naval Association, ~~W~~ ittering & District The “Not Forgotten” ~~A~~ ssociation ~~M~~ r J Conacher ~~M~~ rs S Bonnor The Royal Navy & Royal ~~M~~ arines Charity The Privy Purse ~~C~~ haritable Trust ~~D~~ auntless Association ~~M~~ r M Brookman ~~M~~ rs D A Scanlan ~~M~~ r E Roberts ~~M~~ r S Dickens ~~M~~ r M R F Cartwright ~~C~~ aptain E M Scott Royal Naval Association, ~~M~~ r R & Mrs J M Elliott ~~H~~ anworth Scottish White Fish ~~M~~ rs A L Cawley Producers’ Association,

Scottish White Fish Producers’ Association, ~~F~~ raserburgh Branch ~~M~~ rs P Ewen ~~S~~ eafarers UK

Royal Naval Association, ~~R~~ omford & Hornchurch ~~M~~ r J R Chapman

Royal Naval Association, ~~S~~ outhend on Sea

The Joseph Strong ~~F~~ razer Trust

The Reverend Canon Seven Seas Club ~~B~~ ill Christianson ~~L~~ aristan Fund ~~M~~ r J A Gunning

~~S~~ hepherd Neame Brewery The West Hartlepool Steam Navigation ~~M~~ rs I M Hanson ~~C~~ ompany St George’s ~~T~~ he Edgar Lee Foundation ~~D~~ ay Club Lunch West Croydon Chapter ~~M~~ r G L Haskins ~~o~~ f Royal Arch Masons St Matthew with ~~M~~ r R L’Estrange Holy Trinity Parochial ~~C~~ hurch Council ~~M~~ r K A Williams

~~M~~ r B M Hutchins St Peter’s Church PCC, ~~W~~ oodmansterne

The “Lest We Forget” ~~A~~ ssociation ~~M~~ r K R Woodburne

~~T~~ he Inchcape Foundation ~~T~~ richem South Limited The Innholders’ ~~C~~ haritable Foundation

Merchant Navy Masonic ~~L~~ odge no. 781

~~M~~ r P J J Woollcombe

~~N~~ iarchos (London) Limited

The Woolpack Public ~~H~~ ouse, Banstead

Trinity House The Woolpack Public ~~M~~ aritime Charity ~~H~~ ouse, Banstead The Executors of Mr & Mrs ~~A~~ E Johnson-Newell ~~a~~ nd many others who ~~M~~ rs S A Ward wished to ~~S~~ ir James Knott Trust remain anonymous.

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The Society ‘In the News’

Royal Alfred Online

THE SOCIETY’S PATRON, HRH PRINCESS ANNE, PRESENTING A PERSONAL TOKEN OF APPRECIATION TO CAPT. DUNCAN GLASS

In another prolific year for everyone at The Royal Alfred, 2019 saw our patron HRH The Princess Royal attend the Society’s Annual General Meeting, a celebration of International Women’s Day and a contribution from our residents to the unique D-Day commemorations in Portsmouth.

Throughout the year our dedicated communications agency, Definition, has worked to raise the profile of the Home in both online and print publications. Definition has secured news coverage in national media outlets, as well as care, maritime and regional publications to raise awareness of the Society and its work and to help generate new resident, volunteer and employee enquiries.

The Society’s Patron, HRH Princess Anne, joined Trustees, staff, residents, tenants, volunteers and other distinguished guests to mark the Society’s 153rd AGM this year. The event included a talk from guest speaker Commodore Ian Gibb MBE who enjoyed a long career at sea as captain of many P&O cruise liners including SS Canberra and MV Oriana. Now a life member of The Royal Alfred Seafarers’ Society, Commodore Gibb is also an Elder Brother at Trinity House and dedicated his speech to outgoing Chairman Captain Duncan Glass who retired following 16 years as a Trustee of the Society.

On International Women’s Day in March, the Society had the honour of celebrating the outstanding work carried out by female care workers and professionals in the industry.

Councillor Dorothy Ross-Tomlin, Trustee of the Society and Mayor of Reigate and Banstead, said: “It’s very relevant to be talking about our team on International Women’s Day as two thirds of our senior staff are women and have instilled a professional, kind and caring atmosphere at the Home, ensuring all residents are well looked after.”

On the 75th anniversary of the D-Day landings, two Royal Alfred veterans were invited to take part in a special commemorative musical service in Portsmouth for the fallen heroes of WWII.

Society residents Lieutenant Commander Geoffrey Haskins, Légion d’honneur, and Robert Ball, Légion d’honneur, both gave their experiences of the D-Day landings for a musical project led by young British composer, and grandson of Geoffrey, James Olsen.

Our social channels play a big part in keeping residents’ family and friends connected with what is going on at the Society, with pictures and videos from activities and events.

royalalfredseafarers.co.uk The Royal Alfred Seafarers’ Society Royal Alfred Seafarers @RASeafarers

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Life at The Royal Alfred

Activities & Events

The Royal Alfred Seafarers’ Society Open Day 2019

The Society prides itself on delivering a schedule of exciting events to keep residents entertained and local stakeholders engaged. Our dedicated activities team runs BBQs, family events, quizzes, entertainment and concerts, as well as celebrations for birthdays and calendar dates.

On 10 July 2019, the Society opened its doors to supporters, members and the local community as part of our annual Open Day; a key event in our calendar which takes place in celebration of Seafarers Awareness Week each year.

This year, our Open Day was attended by the Society’s Trustees, the Deputy Mayor of Reigate & Banstead Borough Council, Cllr Rosemary Absalom, and a choir from Woodmansterne Primary School. Guests were invited to meet residents whilst celebrating the work of the maritime charity Seafarers UK, which provides support for those that look after the welfare needs of seafarers, exseafarers and their dependants. Residents shared stories of their time at sea with visitors, while pupils from the school hosted a sing-along.

The day showcased the fantastic facilities at our Home, including our bar, salon, specialist dementia annexe, and beautiful grounds that now feature the recently completed North Field site – a landscaped recreational area for residents.

A ROYAL ALFRED WELCOME FOR THE OPEN DAY

THERAPY PONY BLOSSOM PAYS A FESTIVE VISIT TO OUR RESIDENTS

EASTER FUNDRAISING PARTY

Activities To Make Their Day

Every Christmas, we welcome therapy animals from Kingswood Shetland Ponies to the Society to spend time with our residents. The visits provide residents and tenants with the opportunity to spend time with Blossom the pony and several guinea pigs and rabbits as a therapy tool.

Throughout the year, our team provides daily activities to benefit everyone at the Society, from music sessions and quizzes to baking, arts and crafts, and excursions. These kinds of activities are important for helping to reduce anxiety and loneliness. Social interaction and stimulation brought about through activities such as therapy animal visits is key for our residents that may be bed-bound and find moving around the Home difficult. It is very rewarding to see our residents responding positively to the tailored care packages the Society offers.

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Meet Our People

Councillor Dorothy Ross-Tomlin

Weston Acres Estates Team

“It is a privilege to be involved with a care home that has such an atmosphere of care and kindness.”

“I have been a driver for

WESTON ACRES

residents and tenants at Belvedere House for over five years. Being the person that takes them to pick up their prescriptions and to their medical appointments still makes me proud every single day”

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Meet Our People

Lieutenant Commander Geoffrey Haskins LDH (FR) RNZN

We witnessed many things, including the downing

“I have made wonderful memories at sea and feel grateful that I can share them with likeminded seafarers at the Royal Alfred.”

Letters of Thanks

Letters of Thanks from 2019

“Ever since walking into The Royal Alfred on my first visit, I have received nothing less than perfection in every manner. The staff, in every form, are simply wonderful – caring, understanding, personal – and will do absolutely anything for you. It truly feels like one big family and my mother has settled incredibly fast and is so very happy.

The entertainment is superb with something on at least once every day and the staff are fantastic at getting the residents to join in. The food is simply delicious, and the cooks work so terribly hard. Everyone is treated with such dignity and I could never imagine finding a place so perfect in every way for my mother.”

“My father, who had dementia, was a resident at Belvedere House for just over a year. He had a very nice room, with its own toilet, which overlooked the garden. The home is run to high standards, is clean, and is relatively modern. The surrounding grounds contain formal gardens and a large area which consists of a wildflower meadow and two large ponds. My father loved to walk around the pond and look at the wildflowers and insects. There are also three enclosed courtyard gardens where residents can sit and enjoy the sunshine. Dogs are welcome so I used to take mine to see him and he would play ball with her in the garden.

“My mother has only been at Belvedere House for less than a month and I have to say that I have found all the staff outstanding! The level of care is very thorough, highly professional and totally amazing. I have appreciated the warm welcome my mother received. There are so many activities throughout the week as well as a peaceful seating area next to a beautiful pond with little waterfalls!”

The staff are very caring and look after their residents very well. They are happy to talk with you about any issues and deal with any concerns you may have. There is a variety of activities for the residents to participate in if they wish to do so and range from music therapy to arts and crafts.”

“We have seen such improvement in her mental and physical health and haven’t seen her this happy in years. We can’t recommend this place enough.”

“The wonderful care that my Mum is receiving; the friendly staff, cleanliness, catering, activities and events, everything is “My father-in-law is the superb. Choosing a nursing home is one of happiest he has been. the toughest moments but we have been so Belvedere House is clean and blessed with the RASS from day one. Mum is tidy. Staff are so friendly and very happy so that makes the rest of the helpful. A five-star home.” family happy. I cannot thank the RASS and praise them enough.”

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Statements of Financial Governance

In Memoriam

We gratefully acknowledge donations made to the Society during 2019 in memory of the following:

Mrs E Adams Mrs G W Longstaff Mrs L Carey Captain W V Lusted Mrs S Conacher Mrs J Morris Mrs P Cullimore Mrs J M Pettitt Mr J Dickerson Mr L Stuckey Mr D I Hobern Mr S F Ticehurst Mrs E Hodge Mrs R Wilson Mrs M Hughes Lt Cdr J R Woods Mr A J Donoyou

A FITTING FLORAL SALUTE TO A MARINER WHO HAS “CROSSED THE BAR”

Legacies

We gratefully acknowledge bequests to the Society from the following:

Mrs I J Loosemore

Mrs M V Thompson

Statement of Public Benefit

The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011, in having due regard to the Charity Commission’s General Guidance on Public Benefit and are reporting this here as they are required to do under the same directive.

We review our aims, objectives and activities continually. This review looks at what we have achieved and the outcomes of the work, then assesses the level of success of each activity and the benefits they have brought to those people for whom we are responsible for assisting under our Royal Charter.

The Charity Commission’s General Guidance on Public Benefit (mentioned above) is very much used to help us ensure that our aims, objectives and activities remain focused and that those set for the following year and beyond accord with this doctrine also.

Investment Policy

The Society’s policy is to:

• Maintain a diverse portfolio of quoted stocks

• Maintain the value of the portfolio in real terms

• Maximise the total return from capital and income combined while maintaining a medium level of risk

• Delegate investment of available funds to the Investment Committee of the Board which, in turn, delegates investment management to external investment managers on a discretionary basis, with a defined mandate

Risk Assessment

As required, the Board of Management reviews the Society’s Risk Management Policy at regular intervals and the Risk Register at least annually, in particular drawing upon the deep expertise and knowledge in this subject held by some Trustees.

Having considered the primary areas of financial, operational, physical, regulatory and reputational risk, the Board is confident that the appropriate means of control have been adopted. Prudent management practices together with constant awareness of changes in the operating environments are felt to be in force.

As the Society runs a care home, the two risks from a comprehensive risk register with most serious impact have been determined as follows (with the management controls):

• Risk: outbreak of infection leading to loss of life Controls: tight Legionella and infection controls plus good training

• Risk: serious accident leading to death of a resident or tenant

• Controls: risk assessments, comprehensive care plans, thorough and regular health and safety audits and good staff training

The Society’s key Management Staff are responsible for the day-to-day management of risk and for passing to all levels of staff the necessity for constant awareness of all types of risk and of the need to act in such a way as to minimise any adverse events

Staff Pay and Benefits

Society staff pay and benefits are set by reference to the annual surveys by professional incomes data services, local information or other relevant bodies and are consistent within the care industry. The Society always aims to offer terms equivalent to or exceeding the market rate subject to the Society’s financial capability.

Controlled and monitored by:

• Measurement: annual review of salaries and benefits through appropriate comparisons with other relevant data

• Reference: professional data services, like for like comparison, local information or other relevant bodies and shall be consistent within the care industry

• Audit: comparison and calculation criteria held by CEO

• Report: by CEO at annual pay review

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Statements of Financial Governance

Home Manager’s Report

Additionally, it is the Society’s declared intention that no member of staff should be paid less than the National Living Wage quoted at the time and thus is a member of the Living Wage Foundation. Subsequently, the Society is committed to and achieved a minimum £9 per hour for all in 2019, one year ahead of HM Government’s declared policy on the National Living Wage. It is intended that this be raised in 2020 to £10 per hour minimum for all in the Society’s employ.

The Society has a group pension scheme, now run on an auto-enrolment basis, open to all staff which matches an employee’s contribution of four per cent gross annual salary with an employer’s contribution of eight per cent.

Contribution of General Volunteers

The Society highly values the contribution its 27 volunteers make to the smooth running of the nursing care home and sheltered housing – both individually and collectively. Tasks such as ‘befriending’, where a volunteer spends time with an individual resident or tenant to increase their quality of life, running the bar for special occasions when the regular bar staff are absent (it would close otherwise), or assisting with activities, help enormously. None of the help provided by volunteers has a financial implication i.e. they are over and above the provision of care and running of the Home, but add that significant little extra.

Fundraising

The Royal Alfred Seafarers’ Society does not fundraise as a matter of policy; therefore the charity has not made any fundraising appeals to the general public during the year and is unlikely to do so in the future. There has been no outsourced fundraising via professional fundraisers or other third parties. Consequently, the charity is not registered with the fundraising regulator and received no fundraising complaints in the year.

Statement of Trustees’ Responsibilities

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year, and of its position at the end of the year. In preparing financial

statements giving a true and fair view, the Trustees should follow best practice and:

• Select suitable accounting policies and then apply them consistently

• Observe the methods and principles of the most recent Charities SORP

• Make judgments and estimates that are reasonable and prudent

• State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements, and

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity, enabling them to oversee the finances whilst ensuring that the financial statements comply with the Charities Act 2011. The Trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention or detection of fraud and other irregularities.

Tangible Fixed Assets and Depreciation

Assets costing more than £7,500 are generally capitalised and depreciated improvements which enhance the future economic benefits of the property or extend its overall useful life are capitalised and fully written off over the expected useful life of the property. Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Computer and IT – 33.3 per cent per annum Furniture and Equipment – 20 per cent per annum Motor vehicles – 50 per cent per annum Freehold Buildings – estimated useful life of assets, generally 50 years

Freehold land - none

Anne Kasey, Clinical Manager

This year saw several changes at the Royal Alfred, including the Society making positive adjustments to help reduce our carbon footprint. We also finished refurbishing tenants’ flats in our Weston Acres estate and 2019 also saw us mark D-Day 75, a commemoration that our tenants and residents were honoured to mark with a special event.

NORTH FIELD SITE

INTERNATIONAL WOMEN’S DAY 2019

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Home Manager’s Report

OUR D-DAY VETERANS GEOFFREY AND ROBERT

FAMILY FUN AT THE SUMMER FUNDRAISER

SOME OF OUR TEAM AT THE SURREY CARE AWARDS

CLLR DOROTHY ROSS-TOMLIN SPEAKS WITH HRH THE PRINCESS ROYAL

OPEN DAY WITH DEPUTY MAYOR OF REIGATE AND BANSTEAD

HRH THE PRINCESS ROYAL AND VICE ADMIRAL WILKINSON OF SEAFARERS UK

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Financial Background to the Annual Report

The full financial statements of the Society for the year ended 31st December 2019 appear on pages 35-54 of this report. The aim of this short summary is to highlight some key points and thus briefly put the figures into some perspective.

Overall

In short, 2019 was a satisfactory year financially which saw the Society achieve its strategic aim of break-even, plus a very small surplus of £18,645 much helped financially by grants from Trinity House (£100,000), The Royal Navy and Royal Marines Charity (£40,000) and Seafarers UK (£10,000). With increased staff costs to meet National Living Wage requirements and retain high quality team members, grants such as these are a key feature of maintaining an excellent service at reasonable cost. Consistently good Home occupancy – albeit lower than planned in 2019 – at 92 per cent is highly creditable in itself, although by no means a certainty.

Thus our continued reliance on the generosity of fellow maritime charities is vital to ensure that we fill the gap in income created by those seafarers whom we care for but whom are unable to meet the actual cost of care, despite help from local authority funding, which in itself is often well short of the mark. Together with the all-important income from our investment portfolio, based upon its essential maintenance at around £10million minimum, this insures us against deficit and failure.

Keeping the Home full throughout, or as near as possible, remains especially satisfying as this means that the service we provide is both valued and highly rated, and continues to meet a real need amongst seafarers. Income from resident fees and tenant rents remained robust throughout the year, and expenditure was then contained below most budgeted levels, although some additional key maintenance projects were completed. So, both key pillars of financial success were held up: that of an adequate income stream and also expenditure under strict control.

A further, overall point must be made, and that is the good fortune of legacies. Although we do include the acquisition

of legacies in our marketing strategy, it is only by luck that we benefit. We were most fortunate in 2019 to receive several modest legacies, some from people known to us and a couple as a result of what must be credited to successful marketing. With one of these we completed the purchase of the replacement ‘minicoach’ and also purchased a most useful utility vehicle, able to take a wheelchair and staff member in comfort and thus more easily complete hospital visits.

Finally, the balance of the accumulated legacies allowed us to amend our application for grants, specifically the usually kind and generous offer of a grant from Seafarers UK reduced to £10,000. With welcome grants from Trinity House and the Royal Navy and Royal Marines Charity already in the pipeline, it was apparent that we would reach break-even at year-end with this reduced amount of help. If no ‘windfall’ of legacies next year, we will once again, and undoubtedly more so, rely on the availability of grants from our fellow maritime charities to bridge the gap in care funding.

Finally, the Society has for over 30 years, along with four other national charities, owned a fifth share in some 84 acres of greenbelt, agricultural land in Warlingham, Surrey. This was contracted to a promoter, Wellbecks, in 2019 to seek inclusion in the local authority plan with a view to eventual sale for development. A value at agricultural prices has thus now been included as an unrealised asset/ investment and continues to be a long-term asset unlikely to be realised in cash for many years yet.

Performance Of Investments

Following significant falls in December 2018, stock markets rebounded strongly at the start of 2019 as investors realised that the sell-off was overdone and valuations became more attractive. Notably, the S&P 500 Index enjoyed its best January since 1987. The major catalyst for the rally was the change in the Fed’s monetary policy outlook and the indication that interest rates would be cut. Signs of a trade deal between the US and China also helped.

The remainder of the year was full of mood swings. In the spring and summer, fears of slowing global growth resurfaced and anxious investors piled into the safety of government bonds, driving down yields and causing the US yield curve to invert. As sentiment improved, not only did US equities reach a new peak, but industrial stocks, which do well in business cycle upswings, outperformed utility stocks, a safer bet in hard times.

Although the world economy continues to expand, unresolved trade conflicts around the world have not eased the uncertainty. Global trading volumes have fallen for most of 2019 and there are signs that manufacturing activity has also dipped.

• To maintain up to 12 months’ expenditure in reserves so as to ensure that our services are not compromised in the short term. In the year under review this figure amounts to £4million

• To provide for the (anticipated future replacement or) major improvement of care home and housing facilities. At today’s values, it is estimated that the maximum commitment in this respect would be £8 million

For once the polls were right – the Conservative Party secured a large majority in the House of Commons in December and UK shares and sterling surged following the result and the additional clarity that it should provide over Brexit. Financial markets tend to like continuity, especially when the alternative is near-unprecedented change. UK equities outperformed overseas equities as a result, with domestic and smaller companies leading the charge. The Royal Alfred Seafarers portfolio produced strong returns and ended the year up 17.6 per cent.

• The amount of the free reserves is, therefore, considered adequate.

Statement of Trustees’ Responsibilities

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year, and of its position at the end of the year. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:

SORP 2015, FRS 102 and “A Going Concern”

With the introduction of the new SORP (Statement of Recommended Procedures – interpreted as ‘Required Procedures’) and FRS 102, this report has followed new accounting rules and procedures leading to many changes of presentation over previous years’ accounts. One element of change is now the requirement for Trustees to declare whether the Society is a ‘going concern’; the answer must be, and is, an unequivocal yes to both parts of the question. Rooted in a Royal Charter and achieving well our charitable aims, under strong and comprehensive governance, our affairs are guided by regularly updated strategic, business and financial plans looking 20 years ahead with the next five years in detail. With solid levels of reserves, sufficient income streams and a firm control over expenditure, the Society is considered by the Board of Management to be most certainly a ‘going concern’ for the forthcoming year and indeed the foreseeable future.

• Select suitable accounting policies and then apply them consistently

• Observe the methods and principles of the most recent Charities SORP

• Make judgments and estimates that are reasonable and prudent

• State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements, and

• Prepare the financial statements on the ‘going concern’ basis, unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity, enabling them to oversee the finances whilst ensuring that the financial statements comply with the Charities Act 2011. The Trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention or detection of fraud and other irregularities.

Reserves

The Board of Management keeps the Reserves Policy under regular review. The Society holds reserves in order to ensure as far as possible that its prime objectives may be met in the future. Total free reserves at present stand at £12.3million, based on the standard calculation of unrestricted funds less tangible assets, and are required for any of the following purposes:

Approved by the Trustees on 25 March 2020 and signed on their behalf, by:

• To provide working capital

C P Wake OBE RD* FNI B P Boxall Hunt OBE FNI Chairman Chief Executive (Signed On Original) (Signed On Original)

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Financial Statements

Independent auditors’ report to the Trustees of the Royal Alfred Seafarers’ Society.

We have audited the financial statements of The Royal Alfred Seafarers’ Society for the year ended 31[st] December 2019 which comprise Statement of Financial Activities, the charity Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31[st] December 2019 and of the charity’s net movement in funds for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Trustees for the financial statements

As explained more fully in the Trustees’ responsibilities statement set out on page seven, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report.

Conclusions relating to ‘going concern’

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least 12 months from the date when the financial statements are authorised for issue.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are

required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the charity; or

• sufficient accounting records have not been kept; or

• the charity financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Use of audit report

This report is made solely to the charity’s Trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s Trustees as a body for our audit work, for this report, or for the opinions we have formed.

For and behalf of Haysmacintyre LLP Statutory Auditors

10 Queen Street Place London EC4R 1AG

Date: 25[th] March 2020

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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Financial Statements

Statement of financial activities for the year ended 31 December 2019

	Unrestricted funds	Restricted funds	Total funds	Total funds
Note INCOME FROM: Donations, grants and legacies 2 Charitable activities 3 Investments 4 TOTAL INCOME EXPENDITURE ON: Raising funds: Voluntary income Investment management Charitable activities 5 TOTAL EXPENDITURE NET INCOME BEFORE INVESTMENT GAINS/(LOSSES) Net gains/(losses) on investments 9 NET INCOME / (EXPENDITURE) BEFORE OTHER RECOGNISED GAINS AND LOSSES NET MOVEMENT IN FUNDS Transfer between funds RECONCILIATION OF FUNDS: Total funds brought forward TOTAL FUNDS CARRIED FORWARD	2019 £ 293,756 3,382,827 373,984	2019 £ 11,819 - - 11,819	2019 £ 305,575 3,382,827 373,984	2018 £ 399,980 3,145,555 339,672 3,885,207 37,257 50,976 3,774,554 3,862,787 22,420 (864,944) (842,524) (842,524) - 16,245,696 15,403,173
	4,050,567		4,062,386
	30,852 53,952 3,952,863	- - 6,074	30,852 53,952 3,958,937
	4,037,667	6,074	4,043,741
	12,900 1,674,879	5,745 -	18,645 1,674,879
	1,687,779 1,687,779 - 15,403,173	5,745 5,745 - - 5,745	1,693,524 1,693,524 - 15,403,173
	17,090,952		17,096,697

Balance sheet as at 31 December 2019

Note FIXED ASSETS Tangible assets 8 Investments 9 CURRENT ASSETS Debtors 10 Cash at bank and in hand CREDITORS:amounts falling due within one year 11 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES Defined benefit pension scheme asset 12 NET ASSETS INCLUDING PENSION SCHEME LIABILITIES CHARITY FUNDS Restricted funds 13 Unrestricted funds 13 TOTAL FUNDS	£ 320,766 715,165	2019 £ £ 4,772,850 11,572,960 16,345,810 481,996 649,972 1,131,968 (399,573) 750,887 17,096,697 - 17,096,697 5,745 17,090,952 17,096,697	2018 £ 4,821,417 9,849,361
			14,670,778 732,395
	1,035,931 (285,044)
			15,403,173 -
			15,403,173
			- 15,403,173
			15,403,173

The financial statements were approved by the Trustees on 25 March 2020 and signed on their behalf, by:

All activities relate to continuing operations.

The notes on pages 40 to 54 form part of these financial statements.

Signed on the Original

Signed on the Original

Full comparative figures for the year ended 31 December 2019 are shown in note 20.

C P Wake OBE RD* FNI B P Boxall-Hunt OBE FNI Chairman Chief Executive

The notes on pages 40 to 54 form part of these financial statements.

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Financial Statements

Cash flow statement for the year ended 31 december 2019

Note Cash flows from operating activities Net cash used in operating activities 15 Cash flows from investing activities: Dividends, interest and rents from investments Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments Net cash provided by/(used in) investing activities Change in cash and cash equivalents in the year Cash and cash equivalents brought forward Cash and cash equivalents carried forward 16	2019 £ (88,998)	2018 £ (123,044)
	373,984 (171,074) 374,438 (423,157)	339,672 (290,584) 953,807 (706,059)
	65,193	296,836
	649,972	173,792 476,180
	715,165	649,972

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Notes to the financial statements for the year ended 31 December 2019

1. ACCOUNTING POLICIES

The Royal Alfred Seafarers' Society is a charity established by Royal Charter and registered with The Charity Commission in England and Wales, registered number 209776. The registered office is shown on page 1.

1.1 Statement of compliance

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and Charities Act 2011.

The Royal Alfred Seafarers' Society constitutes a public benefit entity as defined by FRS 102.

1.2 Going Concern

The Society's affairs are guided by regularly updated Strategic, Business and Financial plans looking 20 years ahead with the next five years in detail. With solid levels of reserves, sufficient income streams and a firm control over expenditure, the Society is considered by the Board of Management to be a going concern for the forthcoming year and the foreseeable future.

1.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

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Financial Statements

Notes to the financial statements for the year ended 31 December 2019

1. ACCOUNTING POLICIES (continued)

1.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met then the legacy is treated as a contingent asset and disclosed if material.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Notes to the financial statements for the year ended 31 December 2019

1. ACCOUNTING POLICIES (continued)

1.6 Tangible fixed assets and depreciation

All assets costing more than £2,000 are capitalised and depreciated. Improvements which enhance the future economic benefits of the property or extend its overall useful life are capitalised and are fully written off over the expected useful life of the property.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Computer and IT	-	33.3% per annum
Furniture and Equipment	-	20% per annum
Motor vehicles	-	50% per annum
Freehold Buildings	-	estimated useful life of assets - generally 50 years
Freehold Land	-	none

1.7 Investments

Income from nursing home fees and tenant rentals is recognised in the period to which the income related and any amounts received in advance for future periods is carried forwards as deferred income.

Income from donations and grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

Donated land/assets are recognised at the fair value at the date received. Where there is no reliable estimate of the fair value, donated land/assets will be recognised only once this value has been established.

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities.

The valuation of freehold land was carried out by a chartered surveyor and is valued at its Existing Use Value (EUV) based on agricultural values. No depreciation is provided in respect of this land.

1.8 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.12 Financial instruments

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Debtors

Trade and other debtors are recognised at the settlement amount 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 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.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in managing investments

Charitable activities and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

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Financial Statements

Notes to the financial statements for the year ended 31 December 2019

1. ACCOUNTING POLICIES (continued)

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.13 Pensions

The cost of providing pensions for employees is charged against the Statement of Financial Activities over the average working lives of members in accordance with the recommendation of the pension scheme actuary. The pension scheme is a defined benefit scheme the assets of which are held independently from the assets of the Society.

The Society also contributes to the employees' group pension scheme. The contributions are held in funds held independently of the Society's assets.

The Society has fully implemented the requirement of FRS102 relating to employee benefits. The deficit has been included in the balance sheet.

1.14 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

In the opinion of the Trustees the main estimate and assumption that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are in relation to the useful life of fixed assets, which are written off in accordance with the depreciation policies set out in note 1.6.

The valuation of the pension scheme assets and liabilities is carried out by the scheme actuary based on various assumptions and estimates. Details are given in Note 12.

The valuation of donated land is carried out by a chartered surveyor based on various assumptions and estimates. The amounts recognised in these accounts have been estimated based on current agricultural values and future plans of the Charity.

1.15 Employee benefits

A liability is recognised for any overtime hours earned during the year which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the hourly rate of the overtime worked.

Notes to the financial statements for the year ended 31 December 2019

2. INCOME FROM DONATIONS, GRANTS AND LEGACIES

Donations Donations Legacies Parish Quinn Loosemore Thompson Wright Other Grants The Corporation of Trinity House RN&RM Charity Seafarer’s UK Total	Unrestricted funds 2019 £ Restricted funds 2019 £ 26,110 11,819 24,951 66,943 1,000 17,092 - 2,660 5,000 100,000 - 40,000 - 10,000 -	Unrestricted funds 2019 £ Restricted funds 2019 £ 26,110 11,819 24,951 66,943 1,000 17,092 - 2,660 5,000 100,000 - 40,000 - 10,000 -	Total funds 2019 £ 37,929 - 24,951 - 66,943 - 1,000 17,092 - 2,660 - 5,000 100,000 40,000 10,000 305,575
	293,756	11,819

PRIOR YEAR INCOME FROM DONATIONS, GRANTS AND LEGACIES

Donations Donations Legacies Roberts Parish Huntley Davis Wright Grants The Corporation of Trinity House RN&RM Charity Total	Unre	stricted funds 2018 £ 58,664 10,000 150,000 10,000 5,000 65,000 68,200 20,000	stricted funds 2018 £ 58,664 10,000 150,000 10,000 5,000 65,000 68,200 20,000	Restricted funds 2018 £ 13,116 - -	- - - - - -	Total funds 2018 £ 71,780 10,000 150,000 10,000 5,000 65,000 68,200 20,000 399,980
		386,864		13,116

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Financial Statements

Notes to the financial statements for the year ended 31 December 2019

3. INCOME FROM CHARITABLE ACTIVITIES

INCOME FROM CHARITABLE ACTIVITIES
Belvedere House Care Home Weston Acres Housing	Total funds 2019 £ 3,190,410 192,417	Total funds 2018 £ 2,972,493 173,062
	3,382,827	3,145,555

4. INVESTMENT INCOME

INVESTMENT INCOME
Dividends Bank Interest Receivable	Total funds 2019 £ 372,983 1,001	Total funds 2018 £ 338,813 859
	373984	339672

5. CHARITABLE EXPENDITURE

Computer, Phone & IT Legal & Professional Other Office Costs Rent & Rates Light & Heat Heating project Repairs & Maintenance Insurance Motor and Travel PPS Agency Costs Cleaning Other Staff Costs Food & Kitchen Staff costs Exceptional costs Bad debts Audit fees Depreciation Activities and amenity fund expenditure	Belvedere House Care £ 24,993 60,277 79,087 8,592 57,663 8,233 238,679 19,138 5,295 9,708 82,487 50,280 16,880 124,456 2,471,080 - 1,781 - 195,315 12,379 3,466,323	Weston Acres Housing Support Costs £ £ 4,709 7,214 5,834 13,526 151 10,618 7,582 - 22,923 - - - 66,026 5,413 5,461 2,730 - - - 2,283 - - 4,500 - - 44,854 - - 76,007 154,180 - 17,428 3,395 - - 18,033 1,472 18,275 - - 198,060 294,554	Total 2019 £ 36,916 79,637 89,856 16,174 80,586 8,233 310,118 27,329 5,295 11,991 82,487 54,780 61,734 124,456 2,701,267 17,428 5,176 18,033 215,062 12,379 3,958,937

Notes to the financial statements for the year ended 31 December 2019

5. PRIOR YEAR CHARITABLE EXPENDITURE

Computer, Phone & IT Legal & Professional Other Office Costs Rent & Rates Light & Heat Heating project Repairs and maintenance Insurance Motor and Travel PPS Agency costs Cleaning Other Staff Costs Food and Kitchen Staff Costs Exceptional Costs Bad debts Audit fees Depreciation	Belvedere House Care £ 13,789 54,843 41,659 25,670 41,879 - 159,588 18,361 3,191 6,185 27,084 45,027 38,031 157,887 2,407,947 - 3,940 - 186,302 3,231,383	Weston Acres Housing Support Costs £ £ 1,480 4,861 17,520 28,154 313 19,554 8,098 922 21,427 - - 56,144 35,505 997 4,729 4,730 97 12,288 - 2,475 - - 3,444 - 75 32,089 - - 61,242 141,627 - 47,109 - - - 18,900 1,571 17,820 155,501 372,110	Tot 201 20,1 100,5 61,5 34,6 63,3 56,1 196,0 27,8 15,5 8,6 27,0 48,4 70,1 157,8 2,610,8 47,1 3,9 18,9 205,6
			3,774,55

6. NET INCOME

This is stated after charging:

Depreciation of tangible fixed assets: - owned by the charity Auditors' remuneration: audit of financial statements Auditors' remuneration: other fees	2019 £ 215,062 13,250 2,700	2018 £ 206,314 12,400 2,600

Governance costs totalled £18,033 for the year (2018: £18,900).

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Financial Statements

Notes to the financial statements for the year ended 31 December 2019

7. STAFF COSTS

Staff costs were as follows:

Staff costs were as follows:
Wages and salaries Social security costs Other pension costs	2019 £ 2,346,329 201,617 153,321	2018 £ 2,267,473 193,047 150,295
	2,701,267	2,610,816

The average number of persons employed by the charity during the year was as follows:

Care Staff General Staff Management and Administration The number of higher paid employees was: £60,001 - £70,000	2019 No. 57 39 5*	2018 No. 59 31 4
	101	94 2018 No. 1
	2019 No. 1

Total employers pension contribution of £5,487 (2018: £5,447) were paid for the provision of defined contribution schemes relating to higher paid staff.

No trustee received remuneration for their services (2018: Nil).

Three trustees were reimbursed total travel and meeting expenses of £677 during the year (2018: £653).

Remuneration for key management personnel was £215,343 (2018: £208,594).

*Methodology for recording staff numbers has changed from FTE to actual numbers employed. In reality there has been no increase in General Staff numbers from 2018.

Notes to the financial statements for the year ended 31 December 2019

8. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Cost At 1 January 2019 Additions Disposals At 31 December 2019 Depreciation At 1 January 2019 Charge for the year Disposals At 31 December 2019 Net book value At 31 December 2019 At 31 December 2018	Freehold Land £ 40,000 - -	Freehold Property £ 6,855,567 - -	Fixtures and Fittings £ 844,108 91,008 -		Motor Vehicles £ 172,947 80,066 (68,467)	Total £ 7,912,622 171,074 (68,467)
	40,000	6,855,567	935,116		184,546	8,015,229 3,091,206 215,062 (63,888) 3,242,379 4,772,850 4,821,417
	- - -	2,261,012 163,789 -	743,500 23,451 -		86,693 27,822 (63,888)
	-	2,424,801	766,951		50,627
	40,000	4,430,766	168,165		133,919
	40,000	4,594,555	100,608		86,254

All fixed assets are either for direct charitable use, or for activities in the furtherance of the charity's objectives.

9. FIXED ASSET INVESTMENTS

L Market value At 1 January 2019 Additions Disposals Revaluations At 31 December 2019 Historical cost	isted securities £ 9,558,340 423,157 (633,751) 1,362,464 10,710,210 6,854,805		Cash £ 291,021 259,314 - - 550,335 550,335	F	reehold Land £ - - - 312,415 312,415 -	Total £ 9,849,361 994,886 (633,751) 1,674,879
						11,572,960
						7,405,140

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Financial Statements

Notes to the financial statements for the year ended 31 December 2019

9. FIXED ASSET INVESTMENTS (continued)

Investments at market value comprise:

Listed investments Cash Freehold land at Warlingham Total market value All the fixed asset investments are held in the UK.	2019 £ 10,710,210 550,335 312,415 11,572,960	2018 £ 9,558,340 291,021 -
		9,849,361

Notes to the financial statements for the year ended 31 December 2019

12. PENSIONS AND OTHER POST RETIREMENT BENEFITS

The Society operates a defined benefit Pension Scheme. The assets of the Scheme are held by the Trustees of the Scheme, separately from those of the Society, and are invested with Aviva in a with-profits pension policy. When a member retires, the Trustees secure the member’s pension and, where relevant, the contingent spouse’s pension in an immediate annuity policy with Aviva on the basis of the guaranteed annuity rates under the policy. The Society’s contributions to the Scheme are calculated so as to spread the cost of purchasing pensions over the period up to the date when members retire or decide to take their benefits in accordance with the rules. The contributions required are reviewed by a qualified independent actuary every three years.

On 30 March 2007, the Scheme closed to future service, breaking the link to members’ future salaries. Benefits are based on service and salary at the date of closure or leaving service. Pensions in payment are increased annually in accordance with the Rules of the Scheme.

The Society now pays contributions to the employees’ group personal pension.

10. DEBTORS

DEBTORS
Resident and tenant debtors Other debtors and accrued income Prepayments	2019 £ 101,006 128,945 90,815	2018 £ 290,366 175,664 15,966
	320,766	481,996

11. CREDITORS: Amounts falling due within one year

CREDITORS: Amounts falling due within one year
Trade creditors Other taxation and social security Funds held on behalf of residents Other creditors Accruals Fees in advance Deferred income Deferred income at 1 January 2019 Resources deferred during the year Amounts released from previous years Deferred income at 31 December 2019		2019 £ 19,842 51,060 12,978 38,851 68,313 94,000	2018 £ 28,476 51,204 15,057 37,069 78,767 189,000
		285,044	399,573

The disclosures below relate only to the defined benefit Pension Scheme.

The latest full triennial actuarial valuation of the Scheme was carried out at 1 March 2017. The valuation excluded the value of the Scheme’s immediate annuity policies. The value of the Fund’s assets and liabilities at that date, which related only to the deferred pensioners, was £316,000 and £319,000 respectively, thus disclosing a small deficit of £3,000. The Society is making good this deficit by the payment of contributions of £100 per month up to 31 December 2020.

During the year, the Society paid contributions to the Scheme of £1,200 (2018: £1,200).

During the year, one deferred pensioner retired so there are only two deferred pensioners remaining (2018: 3). As at 31 December 2019, there were 39 pensions in payment (2018: 38) with annual pensions in payment of £296,880 pa (2018: £285,051 pa).

The market value of the Aviva with-profits insurance policy as at 31 December 2019 was £203,459 (2018: £239,004). The old Guaranteed Annuity Fund has now been reduced to £Nil (2018: £7,486).

The Scheme’s assets also include immediate annuity policies insured with Aviva valued at £5,038,000 (2018: £4,766,000) and the value of these annuities is included in these accounts. The inclusion of these figures does not impact on the deficit or surplus in the Scheme since these annuities are fully secured with Aviva.

The valuation of the defined benefit liabilities does not reflect any additional liabilities which may result from the requirement to equalise benefits relating to Guaranteed Minimum Pensions arising from pensionable service prior to 5 April 1997. The expected cost impact cannot be reliably estimated at the present time so, consequently, no provision has been made.

The actuary has provided the following information about the financial position of the Scheme as at 31 December 2019 as required by Financial Reporting Standard FRS 102.

Balance Sheet	2019	2018
Fair value of scheme assets	£5,241,000	£5,005,000
Present value of liabilities	(£5,161,000)	(£4,918,000)
Total	£80,000	£87,000

The Scheme surplus revealed by these calculations as at 31 December 2019 is not recognised in the Society’s balance sheet.

Deferred income is made up of payments received in advance from residents for the next financial year.

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Financial Statements

Notes to the financial statements for the year ended 31 December 2019

Income statement	2019	2018
Service cost	-	-
Past service cost	-	-
Settlements/Curtailments	-	-
Net interest cost on net DB liability	£2,000	£3,000
Total	£2,000	£3,000
Statement of Comprehensive Income	2019	2018
Actuarial gains (losses) on scheme assets	£411,000	£8,000
Actuarial gains (losses) on scheme liabilities	(£421,000)	(£36,000)
Net scheme asset not shown as asset on B/S	(£80,000)	(£87,000)
Total	(£90,000)	(£115,000)
Movement in assets during the year	2019	2018
Assets at beginning of year	£5,005,000	£5,265,000
Interest income (expense)	£121,000	£117,000
Employer contributions	£1,000	£1,000
Benefits paid	(£297,000)	(£386,000)
Actuarial gains (losses) on scheme assets	£411,000	£8,000
Assets at end of year	£5,241,000	£5,005,000
Movement in liabilities during the year	2019	2018
Liabilities at beginning of year	£4,918,000	£5,154,000
Current service cost
Interest cost	£119,000	£114,000
Benefits paid	(£297,000)	(£386,000)
Actuarial (gains) losses on scheme liabilities	£421,000	£36,000
Liabilities at end of year	£5,161,000	£4,918,000

The principal long-term financial assumptions used in the FRS 102 valuation were:

	2019	2018
Discount rate	1.7%	2.5%
Retail Price Inflation	3.0%	3.2%
Consumer Price Inflation	2.0%	2.2%
Rate of increase in pensions in payment	3.0%	3.2%
Rate of increase in deferred pensions	2.0%	2.2%

The mortality assumptions are subject to regular review; the mortality table used in the valuation as at 31 December 2019 was S2PMA/S2PFA CMI Model 2018 [1.25%] (2017: CMI Model 2017 [1.25%]) which gives the following life expectancies at age 60:

e 60:
	2019	2018
Male	26.0	26.6
Female	28.1	28.6

Notes to the financial statements for the year ended 31 December 2019

13. STATEMENT OF FUNDS

Designated funds Parish Legacy General funds General Funds Total Unrestricted funds Restricted funds Amenity Fund Total of funds	2019 Brought Forward £ 17,000	Income £ -	Expenditure £ (17,000)		Gains/ (Losses) £ -	2019 Carried Forward £ -
	17,000 15,386,173	-	(17,000)		-	-
		4,050,567	(4,020,667)		1,674,879	17,090,952
	15,403,173 -
		4,050,567 11,819	(4,037,667) (6,074)		1,674,879 -	17,090,952 5,745
	15,403,173	4,062,386	(4,043,741)		1,674,879	**17,096,697 **

Designated funds have been set aside by the Trustees for the purposes set out above. The “Parish Legacy” fund was used to fund a replacement and upgraded “minicoach” and utility vehicle in order to continue the provision of regular outings in improved comfort.

The restricted Amenity Fund represents monies specifically given to provide additional amenities for the residents and staff of the homes run by the charity.

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Financial Statements

Notes to the financial statements for the year ended 31 December 2019

13. STATEMENT OF FUNDS (continued)

PRIOR YEAR STATEMENT OF FUNDS

Designated funds Building Work North Field Landscaping Parish Legacy General funds General Funds Defined benefit pension scheme Total Unrestricted funds Restricted funds Amenity Fund Total of funds	Brought Forward £ - 87,000 -	Income £ - - 150,000	Expenditure £ - (87,000) (133,000)		Gains/ (Losses) £ - - -	Carried Forward £ - - 17,000
	87,000	150,000	(220,000)		-	17,000
	16,162,195 (4,000)	3,722,091 -	(3,629,170) -		(868,944) 4,000	15,386,173 -
	16,245,195	3,872,091	(3,849,170)		(864,944)	15,403,173
	**501 **	13,116	(13,617)		-	-
	16,245,696	3,885,207	(3,862,787)		(864,944)	15,403,173

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets Fixed asset investments Current assets Creditors due within one year	Unrestricted funds 2019 £ 4,772,850 11,572,960 1,030,186 (285,044)	Restricted funds 2019 £ - - 5,745 -	Total funds 2019 £ 4,772,850 11,572,960 1,035,931 (285,044)	Total funds 2018 £ 4,821,417 9,849,361 1,131,968 (399,573)
	17,090,952	5,745	17,096,697	15,403,173

Notes to the financial statements for the year ended 31 December 2019

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS – PRIOR YEAR

Tangible fixed assets Fixed asset investments Current assets Creditors due within one year	Unrestricted funds 2018 £ 4,821,417 9,849,361 1,131,968 (399,573)	Restricted funds 2018 £ - - - -	Total funds 2018 £ 4,821,417 9,849,361 1,131,968 (399,573)	Total funds 2017 £ 4,752,192 10,969,244 821,331 (297,572)
	15,403,173	-	15,403,173	16,245,195

15. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

FROM OPERATING ACTIVITIES
Net income/(expenditure) for the year (as per Statement of financial activities) Adjustment for: Depreciation charges Disposals of fixed assets (Losses)/gains on investments Dividends, interest and rents from investments Decrease/(increase) in debtors (Decrease)/increase in creditors Net cash used in operating activities 16. ANALYSIS OF CASH AND CASH EQUIVALENTS Cash in hand Total 17. CONTINGENT LIABILITIES	2019 £ 1,693,524 215,062 4,579 (1,674,879) (373,984) 161,230 (114,530)	2018 £ (842,524) 206,314 15,045 872,136 (339,672) (136,344) 102,001
	(88,998)	(123,044)
	2019 £ 715,165	2018 £ 649,972
	715,165	649,972

The Trustees have confirmed that there were no contingent liabilities which should be disclosed at 31 December 2019 (2018: none).

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Financial Statements

How You Can Help The Society

Notes to the financial statements for the year ended 31 December 2019

19. CAPITAL COMMITMENTS

At 31 December 2019 the charity had capital commitments as follows:

Expenditure contracted	2019 £ 2018 £ - 20,000 - 20,000

20. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES 2018

Note INCOME FROM: Donations, grants and legacies 2 Charitable activities 3 Investments 4 TOTAL INCOME EXPENDITURE ON: Raising funds: Voluntary income Investment management Charitable activities 5 TOTAL EXPENDITURE NET INCOME BEFORE INVESTMENT GAINS/(LOSSES) Net gains on investments 9 NET INCOME / (EXPENDITURE) BEFORE OTHER RECOGNISED GAINS AND LOSSES Actuarial (losses)/gains on defined benefit pension schemes NET MOVEMENT IN FUNDS Transfer between funds RECONCILIATION OF FUNDS: Total funds brought forward	Unrestricted funds 2018 £ 386,864 3,145,555 339,672		Restricted funds 2018 £ 13,116 - - 13,116 - - 15,564 15,564 (2,448) - (2,448) - (2,448) 1,947 501	Total funds 2018 £ 399,980 3,145,555 339,672
	3,872,091			3,885,207
	37,257 50,976 3,758,990			37,257 50,976 3,774,554
	3,847,223			3,862,787
	24,868 (864,944)			22,420 (864,944)
	(840,076) -			(842,524) -
	(840,076) (1,947) 16,245,195			(842,524) - 16,245,696

Every donation or legacy makes a vital contribution and we are grateful for all the gifts we receive. A suitable donation form is provided on page 57 of this Report together with a standing order form on page 58 if you wish to make regular donations.

Whatever you decide to do, please send the forms to us, making sure to include the bank’s full address to which we can forward the standing order form. We set out below some information on how you can help our work to continue.

By Donation Under Gift Aid

If you pay sufficient income tax or capital gains tax you can make tax-efficient donations of any amount to charities. If you do make your donation under Gift Aid rules, The Royal Alfred Seafarers’ Society can claim 25 pence from HM Revenue & Customs for every pound you donate. If you pay a higher rate of tax you can reclaim the higher rate component in your own tax return.

If you can increase the value of your gift, whether one-off or regularly by standing order, please complete the Gift Aid declaration on page 57 and return it with your donation.

By Give As You Earn

If your employer operates Give as You Earn you can take advantage of the facility to the benefit of The Royal Alfred Seafarers’ Society.

By Remembering the Society in Your Will

Legacies are a certain way of ensuring that your support for The Royal Alfred Seafarers’ Society continues after your death. They provide a very important source of income and help to ensure that our work carries on in the future.

If you are kind enough to remember the Society in your Will, we suggest that the following wording might be appropriate:

“I give and bequeath to The Royal Alfred Seafarers’ Society (Registered Charity No. 209776) the sum of £………… OR all the residue of my estate OR ......... percent of the residue of my estate

And I declare that the receipt of the Chief Executive or other authorised officer for the time being of the Charity shall be sufficient discharge to my executors.”

royalalfredseafarers.co.uk

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55

Notes on Donating

Donation Form

• 3 If you pay tax at the higher rate you can claim further tax relief in your Self-Assessment tax return

• 1 You can cancel this declaration at any time by notifying the Society

• 2 To be eligible under Gift Aid rules, you must pay an amount of income tax and/or capital gains tax at least equal to the tax that the Society reclaims on your donations in the tax year (currently 25p for each £1 you give). If in the future your circumstances change and you no longer pay tax on your income and capital gains equal to the tax that the Society reclaims, you must cancel your declaration (see note 1)

• 4 If you are unsure whether your donations qualify for Gift Aid tax relief, please speak to us or ask your local tax office for leaflet IR113 Gift Aid

• 5 Please notify the Society if you change your name or address

Donation

Gift Aid Declaration

Please read carefully the notes on page 55; if you are eligible, and wish to do so, please complete the following information to enable The Royal Alfred Seafarers’ Society to reclaim the tax direct from the Government on your behalf:

• *I would like the above donation and any future donations to be made to The Royal Alfred Seafarers’ Society through the Gift Aid Scheme.

• Delete if not applicable to your donation.

I enclose a cheque for £ as a gift to the work of the Society for the benefit and aid of British seafarers, their widows/widowers and dependants.

----- Start of picture text -----
Title:
----- End of picture text -----

Full Name:

Address

Postcode: Date:

56

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Standing Order Form

I (Full Name):

Buy a copy of our book and help seafarers in need

Of (Address):

Postcode :

Request you to pay to: National Westminster Bank plc, St Nicholas Centre, Sutton, Surrey SM1 1DH for the credit of The Royal Alfred Seafarers’ Society (Sort Code 60-21-08 Account No. 43455743) The Sum of (Amount in Words):

The Sum of (Amount in Figues): Starting on this Date

£

In 2015, we marked our 150th anniversary with the publication of a commemorative book – Home From Sea.

It tells the story of how the Royal Alfred came to be, its people and places, and the difference it has made to seafarers’ lives over 150 years, all the way up to the present day.

and thereafter monthly/annually until further notice.

Signature Today’s Date

To (Name of Bank):

Of (Address):

Postcode:

Your Account Number

To order a copy of the book, please contact the Society on 01737 353763. Books are priced at £10 each (including postage and packing), with proceeds from each sale donated to Seafarers UK. Gift Aid will also apply.

58

The Royal Alfred Seafarers’ Society

Head Office, Weston Acres, Woodmansterne Lane, Banstead, Surrey, SM7 3HB

Telephone: [phone] Email: [e-mail] Website: royalalfredseafarers.co.uk Facebook: Royal Alfred Seafarers Twitter: @RASeafarers

Registered as a Charity No. 209776

Slide Show Pages

THE ROYAL ALFRED SEAFARERS' SOCIETY

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE ROYAL ALFRED SEAFARERS' SOCIETY

Opinion

We have audited the financial statements of The Royal Alfred Seafarers’ Society for the year ended 31 December 2020 which comprise of the Statement of Financial Activities, the Charity Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the Charity’s affairs as at 31 December 2020 and of of the Charity’s net movement in funds for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information,

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THE ROYAL ALFRED SEAFARERS' SOCIETY

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE ROYAL ALFRED SEAFARERS' SOCIETY

we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the Charity;

• sufficient accounting records have not been kept; or

• the Charity financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees for the financial statements

As explained more fully in the Trustees’ responsibilities statement set out on page 8, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

Based on our understanding of the Charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Care Standards Act 2000 and the Care Quality Commission (CQC) (Registration) Regulations 2009, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls. Audit procedures performed by the engagement team included:

• Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

2

THE ROYAL ALFRED SEAFARERS' SOCIETY

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE ROYAL ALFRED SEAFARERS' SOCIETY

• Reviewing the controls and procedures of the Charity to ensure these were in place throughout the year, including during the Covid-19 remote working period;

• Evaluating management’s controls designed to prevent and detect irregularities;

• Reviewing and testing journal entries made in the year, particularly those made as part of the year end financial reporting process;

• Challenging assumptions and judgements made by management in their critical accounting estimates including the valuation of the donated land held within investments; and

• Reviewing the assumptions and judgements used by the professional actuary in relation to the Society’s pension asset.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Signed on Original

Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London Date: 24 March 2021 EC4R 1AG

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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THE ROYAL ALFRED SEAFARERS' SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Note INCOME FROM: Donations, grants and legacies 2 Charitable activities 3 Investments 4 TOTAL INCOME EXPENDITURE ON: Raising funds: Voluntary income Investment management Charitable activities 5 TOTAL EXPENDITURE NET (EXPENDITURE)/INCOME BEFORE INVESTMENT (LOSSES)/GAINS Net (losses)/gains on investments 9 NET (DEFICIT)/SURPLUS NET MOVEMENT IN FUNDS Transfer between funds RECONCILIATION OF FUNDS: Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricte d funds 2020 £ 640,659 2,840,976 259,490 3,741,125 77,405 40,913 3,785,612 3,903,930 (162,805) (698,560) (861,365) (861,365) - 17,090,952 16,229,587	Restricted funds 2020 £ 22,040 - - 22,040 - - 18,033 18,033 4,007 - 4,007 4,007 - 5,745 9,752	Restricted funds 2020 £ 22,040 - - 22,040 - - 18,033 18,033 4,007 - 4,007 4,007 - 5,745 9,752		Total funds 2020 £ 662,699 2,840,976 259,490 3,763,165 77,405 40,913 3,803,64 5 3,921,96 3 (158,798) (698,560) (857,358) (857,358) - 17,096,69 7 16,239,339	Total funds 2019 £ 305,575 3,382,827 373,984 4,062,386 30,852 53,952 __3,958,937 _ 4,043,741 18,645 1,674,879 1,693,524 1,693,524 - 15,403,173 17,096,697

All activities relate to continuing operations.

The notes on pages 16 to 31 form part of these financial statements.

Full comparative figures for the year ended 31 December 2020 are shown in note 18.

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THE ROYAL ALFRED SEAFARERS' SOCIETY

BALANCE SHEET AS AT 31 DECEMBER 2020

Not e FIXED ASSETS Tangible assets 8 Investments 9 CURRENT ASSETS Debtors 10 Cash at bank and in hand CREDITORS:amounts falling due within one year 11 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES Defned beneft pension scheme asset 12 NET ASSETS INCLUDING PENSION SCHEME LIABILITIES CHARITY FUNDS Restricted funds 13 Unrestricted funds 13 TOTAL FUNDS	£ 314,376 __1,758,5 96 2,072,972 (385,633)	2020 £ £ 4,878,2 97 __9,673,7 03 14,552,00 0 320,766 ___715,16 5 1,035,931 (285,044) 1,687,339 16,239,33 9 - 16,239,33 9 9,752 16,229,58 7 16,239,33 9	2019 £ 4,772,850 _11,572,96 0 16,345,81 0 750,887
			17,096,69 7 -
			17,096,69 7 5,745
			17,090,95 2
			17,096,69 7

The financial statements were approved by the Trustees on 24 March 2021 and signed on their behalf, by:

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THE ROYAL ALFRED SEAFARERS' SOCIETY

C P Wake OBE RD* FNI B P Boxall-Hunt OBE FNI Chairman Chief Executive

The notes on pages 16 to 31 form part of these financial statements.

7

THE ROYAL ALFRED SEAFARERS' SOCIETY

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

2020 2019 Note £ £ Cash fows from operating activities Net cash (used in) operating activities 15 (88,629) (88,998) Cash fows from investing activities: Dividends and interest from investments 259,490 373,984 Purchase of tangible fxed assets (328,127) (171,074) Proceeds from sale of investments 2,377,502 374,438 Purchase of investments (1,176,805) (423,157) Net cash provided by investing activities 1,132,060 154,191 Change in cash and cash equivalents in the year A 1,043,431 65,193 Cash and cash equivalents brought forward 715,165 649,972 Cash and cash equivalents carried forward 16 1,758,596 715,165 A Analysis of changes in net cash funds At 1 January At 31 December 2020 Cashfows 2020 £ £ £ Cash at bank and in hand 715,165 1,043,431 1,758,596 _ __ _ ____ ____ Total cash and cash equivalents715,165 1,043,431 1,758,596	2020 £ (88,629)	2019 £ (88,998)
	259,490 (328,127) 2,377,502 (1,176,805)	373,984 (171,074) 374,438 (423,157)
	1,132,060	154,191
	1,043,431 715,165	65,193 649,972
	1,758,596	715,165

8

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

The Royal Alfred Seafarers' Society is a charity established by Royal Charter and registered with The Charity Commission in England and Wales, registered number 209776. The registered office is shown on page 1.

1.1 Statement of compliance

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP) effective 1 January 2019 and the Charities Act 2011.

The Royal Alfred Seafarers' Society constitutes a public benefit entity as defined by FRS 102.

1.2 Going Concern

The Society's affairs are guided by regularly updated Strategic, Business and Financial plans looking 20 years ahead with the next five years in detail. With solid levels of reserves, sufficient income streams and a firm control over expenditure as fully tested by the COVID 10 pandemic, the Society is considered by the Board of Management to be, most assuredly, a going concern for the forthcoming year and the foreseeable future.

1.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

9

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (continued)

1.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met then the legacy is treated as a contingent asset and disclosed if material.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Income from nursing home fees and tenant rentals is recognised in the period to which the income related and any amounts received in advance for future periods is carried forwards as deferred income.

Income from donations and grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Government grant income paid under the Coronavirus Job Retention Scheme (CJRS) has been recognised in the Statement of Financial Activities in the period to which the underlying furloughed staff costs relate to.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

Donated land/assets are recognised at the fair value at the date received. Where there is no reliable estimate of the fair value, donated land/assets will be recognised only once this value has been established.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

10

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (continued)

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in managing investments

Charitable activities and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities. All expenditure is inclusive of irrecoverable VAT.

1. 6 Tangible fixed assets and depreciation

All assets costing more than £7,500 are capitalised and depreciated. Improvements which enhance the future economic benefits of the property or extend its overall useful life are capitalised and are fully written off over the expected useful life of the property.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Computer and IT	-	33.3% per annum
Furniture and Equipment	-	20% per annum
Motor vehicles	-	50% per annum
Freehold Buildings	-	estimated useful life of assets - generally 50 years
Freehold Land	-	none

1.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities.

The valuation of freehold land was carried out by a chartered surveyor and is valued at its Existing Use Value (EUV) based on agricultural values. The land was last revalued in 2019 when it was recognised as an investment property. The Trustees do not consider that the value has materially changed since this date. No depreciation is provided in respect of this land.

1.8 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

1.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

11

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (continued)

Cash at Bank and in hand

Cash at bank and 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.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.1

0 Pensions

The cost of providing pensions for employees is charged against the Statement of Financial Activities over the average working lives of members in accordance with the recommendation of the pension scheme actuary. The pension scheme is a defined benefit scheme the assets of which are held independently from the assets of the Society. The Society also contributes to the employees' group pension scheme. The contributions are held in funds held independently of the Society's assets.

The Society has fully implemented the requirement of FRS102 relating to employee benefits. The scheme surplus is not recognised on the Society’s balance sheet.

1.1

1 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

In the opinion of the Trustees the main estimate and assumption that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are in relation to the useful life of fixed assets, which are written off in accordance with the depreciation policies set out in note 1.6.

The valuation of the pension scheme assets and liabilities is carried out by the scheme actuary

12

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (continued)

based on various assumptions and estimates. Details are given in Note 12.

The valuation of donated land is carried out by a chartered surveyor based on various assumptions and estimates. The amounts recognised in these accounts have been estimated based on current agricultural values and future plans of the Charity. Further details are given in Note 1.7 above.

1.1

2 Employee benefits

A liability is recognised for any overtime hours earned during the year which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the hourly rate of the overtime worked.

13

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

INCOME FROM DONATIONS, GRANTS AND LEGACIES

	Unrestrict	Restricte	Total
	ed	d	funds
	funds	funds	2020
	2020	2020	£
	£	£
Donations
Donations	14,397	17,040	31,437
Legacies
Hunter – Robertson – designated	300,000	-	300,000
Harris	10,000	-	10,000
Grants
The Corporation of Trinity House	100,000	-	100,000
RN&RM Charity	65,000	-	65,000
Merchant Navy Welfare Board	-	5,000	5,000
London Borough of Hillingdon	945	-	945
Surrey County Council	120,511	-	120,511
Coronavirus Job Retention Scheme	29,806	-	29,806
(CJRS)
Total	640,659	22,040	662,699

PRIOR YEAR INCOME FROM DONATIONS, GRANTS AND LEGACIES

	Unrestricted funds 2019 £ Restricte d funds 2019 £ Total funds 2019 £ Donations Donations 26,110 11,819 37,929 Legacies Parish 24,951 - 24,951 Quinn 66,943 - 66,943 Loosemore 1,000 - 1,000 Thompson 17,092 17,092 Wright 2,660 - 2,660 Other 5,000 - 5,000 Grants The Corporation of Trinity House 100,000 - 100,000 RN&RM Charity 40,000 - 40,000 Seafarer’s UK 10,000 - 10,000 Total 293,756 11,819 305,575

14

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

INCOME FROM CHARITABLE ACTIVITIES

Belvedere House Care Home Weston Acres Housing	Total funds 2020 £ 2,661,882 179,094 2,840,976	Total funds 2019 £ 3,190,410 192,417
		3,382,827

INVESTMENT INCOME

Dividends Bank Interest Receivable	Total funds 2020 £ 258,923 567 259,490	Total funds 2019 £ 372,983 1,001
		373,984

CHARITABLE EXPENDITURE

	Belvedere	Weston	Support	Total
	House Care	Acres	Costs	2020
		Housing
	£	£	£	£
Computer, Phone & IT	12,204	459	1,686	14,349
Legal & Professional	29,063	-	16,655	45,718
Other Ofce Costs	53,229	7,716	16,512	77,457
Rent & Rates	8,318	5,631	-	13,949
Light & Heat	48,392	25,285	-	73,677
Carpet project	7,336	-	-	7,336
Borehole Project	10,350	-	-	10,350
Repairs & Maintenance	121,728	20,238	357	142,323
Insurance	22,173	6,335	3,168	31,676
Motor and Travel	7,227	-	2,678	9,905
PPS	3,794	3,794	2,037	9,625
Agency Costs	12,138	-	-	12,138
Cleaning	52,337	4,372	-	56,709
Medical Supplies	66,350	-	-	66,350
Other Staf Costs	24,091	-	41,022	65,113
Food & Kitchen	104,851	-	-	104,851
Staf costs	2,535,596	89,833	170,733	2,796,162
Exceptional costs	2,357	-	709	3,066
Bad debts	513	1,886	-	2,399

15

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Audit	fees		-		-		24,780		24,780
Depreciation		203,714			1,401		17,565		222,680
Activities and amenity fund expenditure		13,032			-		-		13,032
		3,338,792		166,950			297,902		3,803,64
									5
Governance costs totalled £24,780 for the year (2019: £18,033).
5.	PRIOR YEAR CHARITABLE EXPENDITURE
		Belvedere		Weston Acres					Total
		House Care			**Housing **		Support Costs		2019
			£			£		£	£
	Computer, Phone & IT		24,993		4,709		7,214		36,916
	Legal & Professional		60,277		5,834		13,526		79,637
	Other Ofce Costs		79,087			151	10,618		89,856
	Rent & Rates		8,592		7,582			-	16,174
	Light & Heat		57,663		22,923			-	80,586
	Heating project		8,233			-		-	8,233
	Repairs and maintenance	238,679			66,026		5,413		310,118
	Insurance		19,138		5,461		2,730		27,329
	Motor and Travel		5,295			-		-	5,295
	PPS		9,708			-	2,283		11,991
	Agency costs		82,487			-		-	82,487
	Cleaning		50,280		4,500			-	54,780
	Other Staf Costs		16,880			-	44,854		61,734
	Food and Kitchen	124,456				-		-	124,456
	Staf Costs	2,471,080			76,007		154,180		2,701,267
	Exceptional Costs		-			-	17,428		17,428
	Bad debts		1,781		3,395			-	5,176
	Audit fees		-			-	18,033		18,033
	Depreciation	195,315			1,472		18,275		215,062
	Activities and amenity fund
	expenditure		12,379			-		-	12,379
		3,466,323			198,060		294,554		3,958,937
6.	NET INCOME
	This is stated after charging:
							2020		2019
							£		£
	Depreciation of tangible fxed assets:
	- owned by the charity						222,680		215,062
	Auditors' remuneration: audit of fnancial statements						14,500		13,250
	Auditors' remuneration: other fees						2,900		2,700

16

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7. STAFF COSTS

Staff costs were as follows:

Wages and salaries Social security costs Other pension costs	2020 £ 2,421,953 210,487 163,722 2,796,162	2019 £ 2,346,329 201,617 153,321
		2,701,267

The average number of persons employed by the charity during the year was as follows:

Care Staf General Staf Management and Administration The number of higher paid employees was: £60,001 - £70,000	2020 No. 56 38 5 99 2020 No. 1	2019 No. 57 39 5
		101
		2019 No. 1

Total employers pension contributions of £5,686 (2019: £5,487) were paid for the provision of defined contribution schemes relating to higher paid staff. No Trustees received remuneration for their services (2019: Nil).

No Trustees were reimbursed for travel and meeting expenses during the year £Nil (2019: £677).

Remuneration for key management personnel was £222,102 (2019: £215,343).

17

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

8. TANGIBLE FIXED ASSETS

Freehold Land Freehold Property Fixtures and Fittings Motor Vehicles Total £ £ £ £ £ Cost At 1 January 2020 40,000 6,855,567 935,116 184,546 8,015,229 Additions - 83,498 244,629 - 328,127 Disposals - - - - - At 31 December 2020 40,000 6,939,065 1,179,745 184,546 8,343,356 Depreciation At 1 January 2020 - 2,424,801 766,951 50,627 3,242,379 Charge for the year - 161,607 20,866 40,207 222,680 Disposals - - - - - At 31 December 2020 - 2,586,408 787,817 90,834 3,465,059 Net book value At 31 December 2020 40,000 4,352,657 391,928 93,712 4,878,297 At 31 December 2019 40,000 4,430,766 168,165 133,919 4,772,850 All fxed assets are either for direct charitable use, or for activities in the furtherance of the charity's objectives.		Motor Vehicles £ 184,546 - -	Total £ 8,015,229 328,127 -
		184,546 50,627 40,207 -	8,343,356
			3,242,379 222,680 -
		90,834	3,465,059
		93,712	4,878,297
		133,919	4,772,850

9. FIXED ASSET INVESTMENTS

Listed securities £ Market value At 1 January 2020 10,710,210 Additions 1,176,805 Disposals (1,807,721) Revaluations (698,560) At 31 December 2020 9,380,734 Historical cost 6,404,704		Cash Freehold Land £ £ 550,335 312,415 - - (569,781) - - - (19,446) 312,415 (19,446) -	Total £ 11,572,960 1,176,805 (2,377,502) (698,560)
			9,673,703
			6,385,258

18

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

10. DEBTORS

Resident and tenant debtors Other debtors and accrued income Prepayments CREDITORS: Amounts falling due within one year Trade creditors Other taxation and social security Funds held on behalf of residents Other creditors Accruals Fees in advance Deferred income Deferred income at 1 January 2020 Resources deferred during the year Amounts released from previous years Deferred income at 31 December 2020			2020 £ 132,541 149,862 31,973	2019 £ 101,006 128,945 90,815
			314,376 2020 £ 153,202 54,859 10,976 48,727 59,409 58,460 385,633 2020 £ 94,000 58,460 (94,000)	320,766 2019 £ 19,842 51,060 12,978 38,851 68,313 94,000 285,044
				2019 £ 189,000 94,000 (189,000)
			58,460	94,000

11. CREDITORS: Amounts falling due within one year

Deferred income is made up of payments received in advance from residents for the next financial year.

19

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

PENSIONS AND OTHER POST RETIREMENT BENEFITS

The Society operates a defined benefit Pension Scheme. The assets of the Scheme are held by the Trustees of the Scheme, separately from those of the Society, and are invested with Aviva in a withprofits pension policy. When a member retires, the Trustees secure the member’s pension and, where relevant, the contingent spouse’s pension in an immediate annuity policy with Aviva on the basis of the guaranteed annuity rates under the policy. The Society’s contributions to the Scheme are calculated so as to spread the cost of purchasing pensions over the period up to the date when members retire or decide to take their benefits in accordance with the rules. The contributions required are reviewed by a qualified independent actuary every three years.

On 30 March 2007, the Scheme closed to future service, breaking the link to members’ future salaries. Benefits are based on service and salary at the date of closure or leaving service. Pensions in payment are increased annually in accordance with the Rules of the Scheme.

The Society now pays contributions to the employees’ group personal pension.

The disclosures below relate only to the defined benefit Pension Scheme.

The latest full triennial actuarial valuation of the Scheme was carried out at 1 March 2017. The valuation excluded the value of the Scheme’s immediate annuity policies. The value of the Fund’s assets and liabilities at that date, which related only to the deferred pensioners, was £316,000 and £319,000 respectively, thus disclosing a small deficit of £3,000. The Society made good this deficit by the payment of contributions of £100 per month up to 31 December 2020.

During the year, the Society paid contributions to the Scheme of £1,200 (2019: £1,200).

As at 31 December 2020, there were two deferred pensioners remaining (2019: 2). There were also 39 annuitants (2019: 39) with annual pensions in payment of £308,000 pa (2019: £296,880 pa).

The market value of the Aviva with-profits insurance policy as at 31 December 2020 was £212,070 (2019: £203,459).

The Scheme’s assets also include immediate annuity policies insured with Aviva valued at £5,293,000 (2019: £5,038,000) and the value of these annuities is included in these accounts. The inclusion of these figures does not impact on the deficit or surplus in the Scheme since these annuities are fully secured with Aviva.

The valuation of the defined benefit liabilities does not reflect any additional liabilities which may result from the requirement to equalise benefits relating to Guaranteed Minimum Pensions arising from pensionable service prior to 5 April 1997. The expected cost impact cannot be reliably estimated at the present time so, consequently, no provision has been made.

The actuary has provided the following information about the financial position of the Scheme as at 31 December 2020 as required by Financial Reporting Standard FRS 102.

Balance Sheet	2020	2019
Fair value of scheme assets	£5,505,000	£5,241,000
Present value of liabilities	(£5,438,000)	(£5,161,000)
Total	£67,000	£80,000

The Scheme surplus revealed by these calculations as at 31 December 2020 is not recognised in the Society’s balance sheet.

Income statement Service cost

2020 2019

20

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Past service cost	-	-
Settlements/Curtailments	-	-
Net interest cost on net DB liability	£1,000	£2,000
Total	£1,000	£2,000
Statement of Comprehensive Income	2020	2019
Actuarial gains (losses) on scheme assets	£479,000	£411,000
Actuarial (losses) gains on scheme liabilities	(£494,000)	(£421,000)
Net scheme asset not shown as asset on B/S	(£67,000)	(£80,000)
Total	(£82,000	(£90,000)
	)
Movement in assets during the year	2020	2019
Assets at beginning of year	£5,241,00	£5,005,000
	0
Interest income (expense)	£86,000	£121,000
Employer contributions	£1,000	£1,000
Benefts paid	(£302,000)	(£297,000)
Actuarial gains (losses) on scheme assets	£479,000	£411,000
Assets at end of year	£5,505,000	£5,241,000
Movement in liabilities during the year	2020	2019
Liabilities at beginning of year	£5,161,000	£4,918,000
Current service cost	-	-
Interest cost	£85,000	£119,000
Benefts paid	(£302,000)	(£297,000)
Actuarial losses (gains) on scheme liabilities	£494,000	£421,000
Liabilities at end of year	£5,438,000	£5,161,000
he principal long-term fnancial assumptions used in the FRS 102 valuation were:
	2020	2019
Discount rate	0.9%	1.7%
Retail Price Infation	3.0%	3.0%
Consumer Price Infation	2.1%	2.0%
Rate of increase in pensions in payment	3.0%	3.0%
Rate of increase in deferred pensions	2.1%	2.0%

The principal long-term financial assumptions used in the FRS 102 valuation were:

The mortality assumptions are subject to regular review; the mortality table used in the valuation as at 31 December 2020 was S2PMA/S2PFA CMI Model 2019 [1.25%] (2019: CMI Model 2018 [1.25%]) which gives the following life expectancies at age 60:

2020 2019	2020 2019	2020 2019	2020 2019
Male 26.2 26.0 Female 28.3 28.1

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THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. STATEMENT OF FUNDS

Designated funds Hunter-Robertson Legacy General funds General Funds Total Unrestricted funds Restricted funds Amenity Fund MNWB Total of funds			2020 Brought Forward Income Expenditur e (Losses) /Gains £ £ £ £ - 300,000 - - - 300,000 - - 17,090,9 52 3,441,1 25 (3,903,93 0) (698,56 0) 17,090,9 52 3,741,1 25 (3,903,93 0) (698,56 0) 5,745 17,040 (13,033) - - 5,000 (5,000) - 17,096,6 97 3,763,165 (3,921,963) (698,560)	Income Expenditur e £ £ 300,000 - 300,000 - 3,441,1 25 (3,903,93 0) 3,741,1 25 (3,903,93 0) 17,040 (13,033) 5,000 (5,000)	Income Expenditur e £ £ 300,000 - 300,000 - 3,441,1 25 (3,903,93 0) 3,741,1 25 (3,903,93 0) 17,040 (13,033) 5,000 (5,000)		(Losses) /Gains £ -	Transfers (83,498 )
							-
					3,441,1 25		(698,56 0)
					3,741,1 25 17,040 5,000		(698,56 0) - -	- **- **
								-

Designated funds have been set aside by the Trustees for the purposes set out above. The “HunterRobertson Legacy” fund is designated for the upstairs renovation of Belvedere House.

The restricted Amenity Fund represents monies specifically given to provide additional amenities for the residents and staff of the homes run by the charity.

The restricted MNWB Fund represents monies specifically given for the purchase of PPE during the Covid-19 pandemic.

22

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF FUNDS (continued)

PRIOR YEAR STATEMENT OF FUNDS

Designated funds Parish Legacy General funds General Funds Total Unrestricted funds Restricted funds Amenity Fund Total of funds	Brought Forward £ 17,000	Income £ -	Expenditur e £ (17,000)		Gains/ (Losses) £ -	Carried Forward £ - - 17,090,952 17,090,952 5,745
	17,000	-	(17,000) (4,020,667)		-
	15,386,173	**4,050,567 **			**1,674,879 **
	15,403,173 -	4,050,567 11,819	(4,037,667) (6,074)		1,674,879 -
	15,403,173	**4,062,386 **	(4,043,741)		**1,674,879 **	17,096,697

1 ANALYSIS OF NET ASSETS BETWEEN FUNDS 4.

	Unrestrict	Designate	Restricted	Total	Total
	ed funds	d funds	funds	funds	funds
	2020	2020	2020	2020	2019
	£	£	£	£	£
Tangible fxed assets	4,878,297	-	-	4,878,29	4,772,850
				7
Fixed asset investments	9,673,703	-	-	9,673,70	11,572,96
				3	0
Current assets	1,846,718	216,502	9,752	2,072,97	1,035,931
					23

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2 Creditors due within one (385,633) - - (385,633) (285,044) year 16,013,08 216,50 9,752 16,239,3 17,096,69 5 2 39 7

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS – PRIOR YEAR

Unrestricte d funds Restricted funds Total funds 2019 £ 2019 £ 2019 £ Tangible fxed assets 4,772,850 - 4,772,850 Fixed asset investments 11,572,960 - 11,572,960 Current assets 1,030,186 5,745 1,035,931 Creditors due within one year (285,044) - (285,044) 17,090,952 5,745 17,096,697 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 2020 £ Net (expenditure)/income for the year (as per Statement of fnancial activities) (857,358) Adjustment for: Depreciation charges 222,680 Disposals of fxed assets - Losses/(gains) on investments 698,560 Dividends from investments and bank interest (259,490) Decrease in debtors 6,390 Increase/(decrease) in creditors 100,589 Net cash (used in) operating activities (88,629)	Unrestricte d funds 2019 £ 4,772,850 11,572,960 1,030,186 (285,044)	Restricted funds 2019 £ - - 5,745 -	Restricted funds 2019 £ - - 5,745 -	Total funds 2019 £ 4,772,850 11,572,960 1,035,931 (285,044)	Total funds 2019 £ 4,772,850 11,572,960 1,035,931 (285,044)	Total funds 2018 £ 4,821,417 9,849,361 1,131,968 (399,573)
	17,090,952	5,745		17,096,697		15,403,173
						2019 £ 1,693,524 215,062 4,579 (1,674,879) (373,984) 161,230 (114,530)
			(88,629)			(88,998)

15. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

16. ANALYSIS OF CASH AND CASH EQUIVALENTS

24

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2020 £ Cash in hand 1,758,596 Total 1,758,596 RELATED PARTY TRANSACTIONS During the year, there were Trustee donations totalling £60 (2019: nil). 18. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES 2019 Unrestricte d funds Restricted funds Total funds Not e 2019 £ 2019 £ 2019 £ INCOME FROM: Donations, grants and legacies 2 293,756 11,819 305,575 Charitable activities 3 3,382,827 - 3,382,827 Investments 4 373,984 - 373,984 TOTAL INCOME 4,050,567 11,819 4,062,386 EXPENDITURE ON: Raising funds: Voluntary income 30,852 - 30,852 Investment management 53,952 - 53,952 Charitable activities 5 3,952,863 6,074 3,958,937 TOTAL EXPENDITURE 4,037,667 6,074 4,043,741 NET INCOME BEFORE INVESTMENT GAINS/(LOSSES) 12,900 5,745 18,645 Net gains/(losses) on investments 9 1,674,879 - 1,674,879 NET SURPLUS/(DEFICIT) 1,687,779 5,745 1,693,524	2020 £ Cash in hand 1,758,596 Total 1,758,596 RELATED PARTY TRANSACTIONS During the year, there were Trustee donations totalling £60 (2019: nil). 18. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES 2019 Unrestricte d funds Restricted funds Total funds Not e 2019 £ 2019 £ 2019 £ INCOME FROM: Donations, grants and legacies 2 293,756 11,819 305,575 Charitable activities 3 3,382,827 - 3,382,827 Investments 4 373,984 - 373,984 TOTAL INCOME 4,050,567 11,819 4,062,386 EXPENDITURE ON: Raising funds: Voluntary income 30,852 - 30,852 Investment management 53,952 - 53,952 Charitable activities 5 3,952,863 6,074 3,958,937 TOTAL EXPENDITURE 4,037,667 6,074 4,043,741 NET INCOME BEFORE INVESTMENT GAINS/(LOSSES) 12,900 5,745 18,645 Net gains/(losses) on investments 9 1,674,879 - 1,674,879 NET SURPLUS/(DEFICIT) 1,687,779 5,745 1,693,524	2020 £ Cash in hand 1,758,596 Total 1,758,596 RELATED PARTY TRANSACTIONS During the year, there were Trustee donations totalling £60 (2019: nil). 18. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES 2019 Unrestricte d funds Restricted funds Total funds Not e 2019 £ 2019 £ 2019 £ INCOME FROM: Donations, grants and legacies 2 293,756 11,819 305,575 Charitable activities 3 3,382,827 - 3,382,827 Investments 4 373,984 - 373,984 TOTAL INCOME 4,050,567 11,819 4,062,386 EXPENDITURE ON: Raising funds: Voluntary income 30,852 - 30,852 Investment management 53,952 - 53,952 Charitable activities 5 3,952,863 6,074 3,958,937 TOTAL EXPENDITURE 4,037,667 6,074 4,043,741 NET INCOME BEFORE INVESTMENT GAINS/(LOSSES) 12,900 5,745 18,645 Net gains/(losses) on investments 9 1,674,879 - 1,674,879 NET SURPLUS/(DEFICIT) 1,687,779 5,745 1,693,524	2020 £ 1,758,596	2020 £ 1,758,596		2019 £ 715,165
			1,758,596			715,165
						Total funds 2018 £ 399,980 3,145,555 339,672
		11,819		4,062,386		3,885,207
		- - 6,074		30,852 53,952 3,958,937		37,257 50,976 3,774,554
		6,074		4,043,741		3,862,787
		5,745 - 5,745		18,645 1,674,879		22,420 (864,944)
	1,687,779			1,693,524		(842,524)

25

THE ROYAL ALFRED SEAFARERS' SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
(842,524)
NET MOVEMENT IN FUNDS 1,687,779 5,745 1,693,524
Transfer between funds - - - -
RECONCILIATION OF FUNDS:
15,403,173 15,403,173 16,245,696
-
Total funds brought forward
15,403,173
TOTAL FUNDS CARRIED FORWARD 17,090,952 5,745 17,096,697
----- End of picture text -----

26

The Royal Alfred Seafarers’ Society 1. Audit Findings Report Director RI: Siobhan Holmes; [e-mail] Manager: Holly Bannerman; [e-mail] Year Ended 31 December 2020

The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

Table of Contents

1.	Introduction and Executive Summary .......................................................................................................................... 1
2.	Audit risks and key judgement areas identified during planning ..................................................................................... 2
3.	Accounting and Audit Matters .................................................................................................................................... 4
4.	Detailed control points ............................................................................................................................................... 8
5.	Sector updates and emerging issues ........................................................................................................................... 9

The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

1. INTRODUCTION AND EXECUTIVE SUMMARY

This report summarises our key findings in connection with the audit of the financial statements of The Royal Alfred Seafarers’ Society (“the Charity”) for the year ended 31 December 2020.

Overall conclusion and opinion

At the time of issuing this report we anticipate issuing an unqualified opinion on the financial statements.

We would like to thank Brian Boxall-Hunt, Karen Goddard and Jantimar Wiggins for their help throughout the audit.

Our audit approach

Our work was planned and performed in order to issue an audit opinion on the financial statements in accordance with International Standards on Auditing (UK) (“ISAs”) and the terms of our letter of engagement.

Limitations

Our audit procedures, which have been designed to enable us to express an opinion on the financial statements, have included an examination of the transactions and the controls thereon.

Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation.

We have included in this report only those matters that have come to our attention as a result of our normal audit procedures and, consequently, our comments should not be regarded as a comprehensive record of all deficiencies that may exist or improvements that could be made

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

2. AUDIT RISKS AND KEY JUDGEMENT AREAS IDENTIFIED DURING PLANNING

We set out below the key areas of focus for our audit identified at the planning stage and the conclusions of our audit work:

Audit risk/key judgement area	How we addressed this	Commentary
Presumed risk in revenue recognition We are required to consider and respond to the risks of improper revenue recognition. There is a risk that income has been incorrectly treated under UK GAAP.	We have undertaken the following procedures to verify the appropriateness of revenue recognition: • Substantive testing on income recognised in the period covering the accuracy, completeness and occurrence. We selected income on a sample basis from source documentation and confirmed it was appropriately reflected in the financial statements. • A review of donations and legacy documentation to ensure the income is complete and cut-off is accurate. • An assessment of the appropriateness of the recognition of accrued income and fees in advance. • A review of a sample of transactions around the year end to ensure income as being recorded in the correct period.	The results of our planned audit work are considered to be satisfactory in this area.
Presumed risk of management override We are required to consider and respond to the risks arising from management override of controls. There is a risk of misappropriation of assets and/or misrepresentation of financial information.	We reviewed the accounting estimates and judgements used by management for any risk of potential bias. The controls and procedures were reviewed to assess the risk of potential override and segregation of duties arising. We reviewed the appropriateness of general journal entries posted throughout the year and at year-end for the preparation of the financial statements.	The results of our planned audit work are considered to be satisfactory in this area.

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

Audit risk/key judgement area

How we addressed this

Commentary

Covid-19 We reviewed the controls and procedures of the Charity and ensured these were in place throughout the year. There is a risk that remote working may have impacted the financial controls of the Charity, We reviewed the disclosures within the Trustees’ Report increasing the risk of misappropriation of assets. and financial statements in respect of Covid-19 and ensured these are appropriate. The impact of Covid-19 will need to be considered to ensure disclosures in the financial statements are appropriate.

The results of our planned audit work are considered to be satisfactory in this area. Please see Section 3.2 below for further details.

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

3. ACCOUNTING AND AUDIT MATTERS

3.1 Qualitative aspects of accounting practices and financial reporting

Warlingham Land

The Warlingham land has not been professionally revalued in the year, and therefore the valuation performed in 2019 has been included within the 2020 financial statements.

Management do not consider that the Warlingham land has materially changed in value for the year ended 31 December 2020. This was evidenced by a review of an expert valuer’s farmland index, which tracks the price of bare commercial agricultural land in England and the average change in value from previous year. We are satisfied that there is unlikely to be a material variation in value compared with that included in the financial statements (£312k). However, this evidence is not formal and the current uncertainties arising from matters such as Brexit and Covid-19 are likely to further impact the potential volatility of farmland prices.

For the year ended 31 December 2020, a specific representation has been made by the Trustees in relation to the value of the Warlingham land. Please see Section 3.2 below.

For the year ending 31 December 2021, we recommend that further work is undertaken to assess the likely risk that the value has changed materially, and if the risk is high then consider engaging an independent professional to perform a valuation.

Covid-19 Accounting Treatment

We reviewed the accounting treatment of income and costs associated with Covid-19 and ensured these were correctly treated in the financial statements. The key areas of this review are noted below:

Coronavirus Job Retention Scheme (CJRS) Income

The government and local authorities announced several grants in March 2020 in support of Covid-19, one of which being the Coronavirus Job Retention

Scheme (CJRS). This grant does not have any performance related conditions attached and is designed to provide immediate financial support.

Under SORP and FRS 102, a charity is required to recognise income where there is evidence of entitlement, receipt is probable and its amount can be reliably measured. In the case of government grants, this is when there is reasonable assurance that the entity will comply with the conditions attaching to the grant and the grant will be received. The CJRS grant income should therefore be recognised in the period to which the underlying furloughed staff costs relate and when there is reasonable assurance that the grant claim will be successful. As the Charity meets the eligibility requirements of the scheme before each month end, any income should be recognised in that month irrespective of when the amount was claimed or received.

As part of our audit we have tested the value of claims made agreeing to the accounts and tested a number of entries within one claim to supporting contracts of employment and letters confirming the member of staff was on furlough. No errors were found from the sample tested. We can also confirm that a total grant of £30k has been correctly recognised as a government grant included within income in the Statement of Financial Activities.

We emailed all clients recently to advise that HMRC are issuing ‘nudge’ letters to organisations reminding them of the need to ensure that all claims are accurate and advising that they may undertake more detailed investigations into certain claims. So far 27,000 nudge letters have been issued. HMRC have estimated that £3bn has been potentially overclaimed and they have received over 8,000 whistle-blowing reports. It is the responsibility of every organisation that has made a claim to ensure that they carry out a review of the detailed calculations and supporting documentation in support of the claims. Whilst the deadline has now passed for notifying HMRC if you have made an error, any errors which you identify should be notified to HMRC. If you do find any errors, we advise to contact our employment tax team first before approaching HMRC. Fines for unnotified errors can be issued up to 100% of the overclaim.

Covid-19 Support Grants

The Charity received £126k of other support grants during the year to cover the immediate pressures faced by Covid-19. This income has been correctly shown

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

as unrestricted grant income in the financial statements. We noted one grant for £5k which was restricted to the purchase of PPE. This was fully spent in the year for the purpose intended.

Hunter-Robertson Legacy

During the year, the Charity was notified of a bequest of £300k from the late Hunter-Robertson, a former resident at Belvedere House. Our review of the deceased’s will confirmed the legacy had no restrictions imposed by the donor.

This legacy has been designated towards the Charity’s building project. The initial stage of this project is expected to be completed by September 2021 and estimated total costs are approximately £2m. An amount of £83k was spent on the project during 2020 and is correctly included within tangible fixed assets. Depreciation will be charged once the project is complete and the bedrooms are in use.

We can confirm that the Trustees approved this designation for the purpose noted above and the financial statements reflect this.

Pension Asset

The scheme is in surplus by £67k at 31 December 2020 (2019: £80k). As in the prior year, no asset has been recorded in the financial statements.

Residents’ Funds

Within cash and bank there is a cash balance of £11k held on behalf of residents’ funds (2019: £13k). As this money is not held for the use of the Charity, the balance is also held within creditors. Overall this has £nil impact on the balance sheet.

year ended 30 September 2020. This report, completed by KPMG LLP for Rathbone Investment Management Limited, assesses the internal control environment in place. As part of good governance, the Trustees should review this document each year and assess the impact on their investment strategy and the impact that the internal control environment may have on the Charity’s funds.

On reviewing the report in both the 2019 and 2020 audit, we did not identify any issues which we feel should be brought to your attention. However, this does not cover the full period in which we are reporting on and we therefore recommend that you obtain and review the 2020/21 internal controls report when it becomes available. This will ensure that the controls in operation are adequate and in line with your perceptions.

Debtors

Resident and Tenant Debtors

Resident and tenant debtors at the year-end are £133k (2019: £101k). Included within this balance is an amount of £85k in relation to a former resident of the care home (2019: £41k). We can confirm the full amount was received post year end following the sale of the individual’s property.

From our discussions with management, we understand that the outstanding debts are considered recoverable and no bad debt provision is required. This was evidenced by a review of resident and tenant debtors which identified no overdue or unrecovered debts.

Other Debtors

£68k has been included within other debtors in relation to a shortfall of amounts owed by a former resident. This amount is expected to be paid on distribution of the individual’s estate. We have reviewed all relevant solicitor correspondence and management’s calculations and we consider this amount to be appropriate.

Internal Controls Report

In order to place reliance on the information provided to us by your investment managers to support year end investment valuations and ownership, we review their latest internal controls report. The report available for this audit is for the

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

3.2 Accounting and audit matters

Covid-19 Coronavirus Pandemic

The ongoing and developing situation in respect of the Covid-19 pandemic has had a significant impact across most sectors since March 2020. We have therefore considered the specific impact on the Charity’s financial position, financial resilience and subsequent events disclosures.

We understand that the Trustees believe there are no material uncertainties that the Charity will not continue as a going concern from 12 months from the date the financial statements are signed. Our review of budgets and cash flow forecasts have not identified any concerns in this assessment. We do however recommend that the Trustees continue to monitor the going concern of the Charity carefully, especially in light of committed capital spend over the next few months.

On the basis of our discussions with management and other audit procedures carried out to date, we do not expect that there will need to be a modification to the going concern statement in the accounting policies note or to the audit report. However, this is a rapidly changing situation, so we will need to discuss these matters with management and update our audit evidence closer to the date of approval of the financial statements.

The Trustees’ Report provides details on the impact of Covid-19 on the Charity’s activities and the Charity’s response to the pandemic and we are satisfied with these disclosures.

Remote Working and Remote Auditing

In light of the Covid-19 pandemic and subsequent lockdown measures, the audit was carried out remotely this year. Although this inevitably causes some new challenges, we are pleased to report that the audit went smoothly and that we have obtained all the audit evidence that we require. The Finance Team at the Charity supported us well during this time and we would like to thank Brian Boxall-Hunt, Karen Goddard and Jantimar Wiggins for their hard work in not only the preparation but also making themselves available to the audit team throughout the audit.

The Finance Team worked remotely for part of the year. We have considered the effect this may have had on the operation of the team’s financial controls and we did not identify any issues during our audit work. We would also like to draw your attention to guidance from The Charity Commission on risks to charities working remotely:

https://www.gov.uk/government/news/coronavirus-covid-19-increased-risk-offraud-and-cybercrime-against-charities

The guidance also includes links to resources for charity employees and trustees, and a webinar run by The Charity Commission and the Fraud Advisory Panel on how to spot fraud and protect your charity.

We recommend that any changes in policies and procedures during this period are formally documented and approved by the Trustees.

ISA (UK) 570 Going Concern

The Financial Reporting Council has issued revisions to International Standard on Auditing (ISA) (UK) 570 'Going Concern'. The revisions increase the work that auditors are required to do when assessing whether an entity is a going concern.

Management have prepared a budget and cash flow forecast to March 2022. These forecasts are based on current tenant fee rates and management’s best estimate of future voluntary income, operational costs and capital expenditure.

We challenged management’s assessment of going concern and reviewed the appropriateness of the assumptions made. We agreed amounts to underlying corroborative evidence and considered whether these were reasonable in light of the current Covid-19 pandemic.

We understand that the Trustees believe there are no material uncertainties that the Charity will not continue as a going concern from 12 months from the date the financial statements are signed. Our review of the cash flow forecast and post year end management accounts have not identified any concerns in this assessment. We do however recommend that the Trustees continue to monitor the going concern of the Charity carefully.

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

ISA (UK) 540 Auditing Accounting Estimates and Related Disclosures

The Financial Reporting Council has also issued revisions to International Standard on Auditing (ISA) (UK) 540 ‘Auditing Accounting Estimates and Related Disclosures’. The revisions introduce more robust requirements for the audit of accounting estimates including enhanced professional scepticism and communications and transparency between the auditor and those charged with governance.

We have performed a review of the Charity’s key accounting estimates: depreciation, accruals and the pension asset. We did not identify any issues during our audit work. The work performed on the valuation of Warlingham land is detailed in Section 3.1 above.

Misstatements

We identified no unadjusted misstatements in the financial statements other than clearly trivial items.

Letter of Representation

International Standards on Auditing require us to obtain written representations from the Trustees when you approve the accounts.

This letter contains standard matters with the following additional item specific to The Royal Alfred Seafarers’ Society:

The current valuation of Warlingham land is not considered to be materially different from the professional valuation carried out in 2019.

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

4. DETAILED CONTROL POINTS

We are pleased to report that we did not identify any control points during our audit. There were also no control points identified during the previous year audit.

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

5. SECTOR UPDATES AND EMERGING ISSUES

The following are certain key issues which affect charities and which have recently come into effect or are currently being debated and are likely to impact the sector within the next year. During the current pandemic, we have set up a dedicated Covid-19 webpage for charities. This can be found at https://www.haysmacintyre.com/covid-19-not-for-profit. This web page is updated daily to ensure that you are up to date with the most relevant information.

A. Charity commission, fundraising regulation and financial reporting

Charity Commission guidance on reporting serious incidents resulting from the Coronavirus pandemic

The Charity Commission have published guidance on reporting serious incidents in light of the particular challenges caused by the pandemic. The guidance acknowledges that the pandemic brings new challenges which were not anticipated when the original guidance was published.

The Charity Commission’s usual guidance requires a charity to report financial losses which do not involve a crime where the losses exceed £25,000 or 5% of the charity’s income. However, this threshold has been waived for losses occurring due to Covid-19 and the Commission have stated that trustees should “focus on the significance of the impact of any losses rather than the amount.“

To support trustees in deciding whether an incident is serious the revised guidance provides a number of examples which emphasise the importance of considering the impact on the charity. For instance, the guidance states that a charity should not report a single instance of Covid-19 within the charity. Conversely, if there is an outbreak of Covid-19 which means that a charity cannot deliver services because of staff illness then this would be reportable.

Many charities are also assessing the impact of loss of income given the challenges of fundraising in the current climate. Loss of income is not, in itself, a serious incident but it depends on the impact of the loss of income has on the charity. The guidance explains that loss of income from Covid-19 resulting in the charity being unable to provide services to vulnerable beneficiaries is a serious incident. Similarly, loss of income which will result in the charity being insolvent, or a high likelihood that the charity will be insolvent and forced to close in the next twelve months, is a serious incident. On the other hand, a loss of income with a less serious impact may not be a serious incident.

There are also examples provided by the Charity Commission which are specific to the current pandemic. Examples of matters which would constitute serious incidents include a charity being invested by HMRC due to alleged abuse of the Coronavirus Job Retention Scheme or a charity being investigated by the police due to alleged breaches of lockdown measures.

• The guidance can be found at: https://www.gov.uk/guidance/reporting serious-incidents-to-the-charity-commission-during-the-coronaviruspandemic

Charity Commission guidance on managing financial difficulties in your charity caused by Coronavirus

The Charity Commission has published a guidance note advising trustees what they should consider where operations have been affected by the pandemic. The guidance reinforces the overriding principle that trustees should act in the best interests of the charity and its users/beneficiaries at all times, and sets out three steps to consider int eh current climate:

• 1) Consider your current financial position

• 2) Consider options for minimising costs and protecting and maximising your income

• 3) Keep the charities operations and finances under regular review and take any additional actions.

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

Whilst the guidance is high level, it does imply that in the current environment, trustees should be meeting more regularly than previously to ensure that they are having the necessary oversight of the charity and are up to date with the financial position. The guidance goes further and makes clear that you should report a ‘serious incident’ to us when your assessment reveals that either:

• the scale of financial loss threatens the charity’s ability to operate and serve its beneficiaries, or

• the charity’s financial reserves or other measures are not sufficient to cover the losses

The guidance also sets out the steps that you should take in the event that the charity cannot continue to operate because of Covid-19. The guidance can be found at https://www.gov.uk/guidance/manage-financial-difficultiesin-your-charity-caused-by-coronavirus#contents

Fraud

of key controls within finance/HR. We would recommend a review of the key controls and how they are being operated and evidenced to ensure that the audit trail is maintained during this period of remote working.

SORP Committee

From 2020, there will be changes to the way the SORP is developed with the SORP Committee looking for more representation from smaller charities and a greater focus on the users of the accounts. New members are being sought to work with the SORP Committee as one of eight new engagement strands that looks at the development of the SORP. Applications closed on 31 January 2020.

B. Tax matters

Employment Tax

Job retention scheme

Whilst the world battles with the current pandemic, it has sadly given rise to an increase it attempted fraudulent behavior. Much has been written about the most common frauds and being vigilant, particularly with unusual requests for making payments, or changes to bank account details for suppliers. Fraudsters are quick to adapt, and the most recent attempts have extended to mimicking an employee and requesting the bank account details to be change for the payment of salary. The same level of due diligence and checks should also be put in place for changes to salary information as you should for making changes to suppliers.

Maintaining your control environment

Remote working has become a new way of life for many and not least in the finance team. Now is a good opportunity to review your control environment in the light of remote working. Internal processes may have changed, and it would be best practice to document any changes and ensure that trustees have reviewed and approved them even if they are short term. One of the main challenges for remote working has been the documenting or evidencing

The Government announced a series of Covid-19 support packages, including the Job Retention Scheme to help to protect jobs.

Under the Job Retention Scheme, all UK employers were able to access support to help pay part of the employees’ salary for those employees who would otherwise be laid off. Initially the scheme related to employees who were fully furloughed. The scheme was modified, effective from 1 July 2020, where the scheme would contribute towards the cost of part-time furloughed employees. Following the changes introduced in 1 July, the level of financial support was reduced whereby the employer was required to meet the employer’s National insurance liabilities and pension costs from August 2020 and a further proportion of the salary in September (10%) and October (20%).

Further to the Government’s announcement on Saturday 31 October 2020 that England will be entering into a second lockdown, the Job Support Scheme did not commence on 1 November as previously planned. Instead, the Job Retention Scheme (the ‘scheme’) will be extended until March 2021. Subject

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

to the publication of the updated Treasury Direction, the following details concerning how the scheme will be applied have been published by HM Revenue & Customs. These are set out below:

• The claim under the flexi-furlough scheme will be calculated by reference to their usual contracted hours less the hours worked.

The Job Support Scheme is due to replace the scheme in April 2021.

• The scheme has been extended until March 2021

• Government will pay up to 80% of an employee’s salary

• A monthly salary cap of £2,500 will apply

• The employer will be responsible for paying National Insurance and pension contributions.

Who is eligible?

The scheme will be extended to include employers and employees who did not previously use it. The high-level details so far available provides the following guidance:

Employers

• All employers with a UK bank account and UK PAYE scheme can claim the grant

• The Government expects that publicly funded organisations will not use the scheme

• Partially public funded organisations may be eligible where their private revenues are disrupted.

• All other requirements apply to employers with no restrictions to the size of the employer as there will be once the Job Support scheme comes into effect.

Employees

• Employees must be registered on an employer’s PAYE payroll by 23.59 on 30 October 2020.

• HMRC has confirmed that a Real Time Information submission notifying payment for that employee must have been made on or before 30 October 2020

• Employees can be on any type of employment contract

• Employers will be able to agree any working arrangements with their employees

• Employers can claim the grant for the hours their employees are not working (the flexi-furlough scheme).

Enquiries into the Job retention scheme

HMRC started to take steps to recover grant payments which have either been:

• Made in error, for example, through a misunderstanding of the Coronavirus Direction, or mis-calculation as to the level of grant which could be claimed; or

• The employer was not entitled to make any claims under the terms of the scheme.

Given the complexity of the scheme it is not unsurprising that errors may have been made in calculating the level of grant due under the scheme. Furthermore, HMRC guidance was being continuously updated during the early stages of the scheme.

On 28 July, HM Revenue & Customs (HMRC) published two guidance notes: “Overclaims” guidance and “Penalties” guidance as they relate to overclaimed grants paid to employers through the Job Retention Scheme (scheme).

Overclaims guidance

Where an employer has identified an overclaim following the submission of a claim, this can be deleted online but only within 72 hours of the claim being submitted.

Where a claim has been processed by HMRC, the following options for resolving any overclaim include:

• Telling HMRC as part of the next online claim submitted, thereby reducing the amount to be reclaimed; or

• Contacting HMRC to repay the excess claim. This should only be done where a subsequent claim is not being made.

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

Where an employer has overclaimed grant receipts under the scheme which it has not repaid, it must notify HMRC by the latest of:

• 90 days after the date the employer received the grant to which they were not entitled; or

• 90 days after the date the employer received the grant to which they were not entitled to keep because of a change in circumstances; or

• • 20 October 2020.

HMRC may seek to recover an overpaid grant by issuing a tax assessment for the amount the employer was not entitled to and has not subsequently repaid.

circumstances changed and if the employer repaid the overclaimed amount during the relevant time period being: for companies, 12 months from the end of the accounting period and for sole traders and partnerships, 31 January 2022.

Personal liabilities of the company officer

The legislation also includes provisions where company officers may also be personally liable to pay the tax charged on their company’s overpaid grants under the scheme. The provisions will apply where the officer has deliberately made a claim to which the company was not entitled, or if the company is in insolvency and tax cannot be recovered from the company.

Late payment interest

Name and shame

The employer will be required to pay the amount due within 30 days of the issue of the assessment. HMRC will also be able to charge interest on the late payment of the over reclaim included in the assessment and also seek a late payment penalty where payment remains outstanding for 31 days after the due date.

Penalties

Where the employer does not notify HMRC of any overclaim, then penalties will also be due.

HMRC may impose a penalty of up to 100% of the overclaim, in particular, where the employer fails to notify HMRC. In determining the amount of penalty due, HMRC will consider whether that failure was “deliberate and concealed” which will be the case where the employer:

• Knew it was not entitled to the grant; or

• Knew it had stopped being entitled to it; and

• Did not notify HMRC of the overclaim within the notification period.

HMRC has confirmed that it will not charge a penalty if the employer did not know it had been overpaid at the time it was received, or at the time that

HMRC will publish a “name and shame” list providing details or deliberate defaulters which will have a reputational risk for the employer.

Review

Over 11,000 employers have been contacted by HMRC concerning potential irregularities with the claims made. If you have received a letter or have concerns about the claims submitted to HMRC, then a review of the claims submitted will be a sensible course of action to take.

• Consult with an adviser on filing and reporting requirements, if required, to develop a timely place for the filing of sales tax returns.

– Holiday Pay Changes from 6 April 2020

From 6 April 2020, changes will be made to the calculation of Holiday Pay.

Holiday Pay Reference Period

Under the Working Time Regulations 1998, employers must give their employees 5.6 weeks of holiday leave every year (calculated pro-rata for part-time employees). When managing leave for employees with variable

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The Royal Alfred Seafarers’ Society – Audit Findings Report | Year Ended 31 December 2020

work hours, employers currently use a reference period of 12 weeks to work out the appropriate amount of holiday pay.

The Harpur case identified problems concerning the calculation method, often putting variable hours workers at a disadvantage.

What Has Changed?

From 6 April 2020 the reference period for calculating holiday pay for variable hours workers will increase from 12 to 52 weeks.

The 52-week reference period will function in the same way as the previous 12-week period:

• Employers must count back across the last 52 weeks that the employee has worked, and received pay.

• Weeks in which no pay was received will not be counted towards the 52-week average.

• In situations where employees have worked for less than 52 weeks, employers should use as many full weeks of work as possible to calculate holiday pay.

certainty on the number of days or hours they are likely to work. Employers will need to consider how they respond to such requests so as to act fairly.

• 3) Holiday pay reference period – When determining holiday pay for staff who have irregular working hours, the current regulations require you to calculate and employees average salary of a 12 week period. From April 2020 this has been increased to 52 weeks.

• 4) Parental bereavement leave - The Parental Bereavement Leave Regulations and The Statutory Parental Bereavement Pay (General) Regulations have now been published. They came into effect on 6 April 2020. The Regulations will give employees the right to a minimum of two weeks’ leave following the death of a child under the age of 18, or a stillbirth after 24 weeks of pregnancy. This leave can be taken as either a single block of two weeks or one individual week each, during the 56 weeks after the child’s death. Employees with 26 weeks’ continuous service will be entitled to be paid for this leave at the statutory rate.

• Contractually obliged overtime worked during the reference period must also be included in holiday pay.

Employers will need to consider changes to their existing arrangements, policies and procedures to ensure they will be able to calculate holiday pay entitlements from 6 April 2020.

Employment regulations update

There are a number of changes being introduced during 2020 that affect the rights of employees. Some of the key changes are set out below:

• 1) Right to a written contract of employment on day one. Current law requires employers to provide such a written document within two months of commencing employment. From April 2020, employers must provide this on day one.

• 2) Right to a more predictable and stable contract. After 26 weeks service, workers (Which includes zero hours or casuals) have a right to request predictable and stable contracts – they could request

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