2020-12-31-accounts

Registered number: 00453053 Charity number: 212799

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

8 Cumberland Place Southampton SO15 2BH

73rd ANNUAL REPORT & AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

CONTENTS

	Page
Chief executive's introduction	1
Chairman's statement	2
Trustees' report	3 - 21
Independent auditors' report on the financial statements	22 - 25
Statement of financial activities	26
Balance sheet	27
Statement of cash flows	28
Notes to the financial statements	29 - 43

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

CHAIRMAN'S FOREWORD FOR THE YEAR ENDED 31 DECEMBER 2020

2020 has been a unique year by any measure and certainly one that could not have been anticipated. However, 2020 will be remembered for a long, long time in different ways by different generations across the UK. Our particular focus is the welfare of UK based serving and retired MN seafarers and fishers, and those seafarers serving on ships that visit our ports. The Covid pandemic has had a profound effect on beneficiaries in so many different ways. I was hugely proud of the speed in which our front-line constituent organisations reacted to ameliorate the ways this impacted the maritime sector, whether that was the imminent closure of schools and the need for home education, the need to protect the elderly in our care homes with additional PPE or the impact on shore-leave and crew changes, to name but a few. The funding organisations also stepped forward to create Covid emergency funds which dug deep into their reserves as the time of greatest need had arrived. The best intentions of the front-line charities would be frustrated without the funds to enable them; together we have worked well in 2020.

The Board also recognised the need to create a communications network connecting the front-line right through to our regulator, the Maritime and Coastguard Agency and into the heart of Government, the Department for Transport. This group met weekly for most of the year which ensured that the government and maritime charities sector understood each other’s needs and concerns through challenging times.

Our core mission continues to be to help improve the effectiveness of all those charities caring for merchant seafarers, fishers and their dependants. What no-one suspected was that we would have to do this with staff working entirely from home and Port Welfare Committees (PWCs) being managed through the now familiar program called Zoom. The MNWB team and the wider PWCs and Working Groups should be rightly proud of how quickly they adapted to remote working, and indeed have powered forward with much of our work. This success was achieved in part by the strong and agile management of the Chief Executive, Peter, and his deputy, Sharon, whose leadership ensured the team were as cohesive and productive as if they were office based.

The pandemic will rage on into 2021 but, with multiple vaccines being delivered and vaccine roll-out programme ramping up, I hope that the end is in sight. However, our work will not diminish as the after-effects of the pandemic will create their own unique demands upon the Board, its constituent organisations and our seafaring beneficiaries.

The Board will continue its support to its constituent organisations whilst adapting to the changing environment always focused on helping to improve the effectiveness of all those charities caring for merchant seafarers, fishers and their dependants, irrespective of nationality, religion or ethnic background.

................................................ Captain A K Cassels Chairman Date: 18.05.2021

Page 1

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

CHIEF EXECUTIVE'S INTRODUCTION AS AT 31 DECEMBER 2020

What a year that was! Each of the 19 years I have worked for the Board has been busier than the last and 2020 started no differently. Then the pandemic became a reality and our world saw profound changes to the way we live and work.

To say I am proud of the way the Board and its staff responded to the crisis would be a huge understatement. From the very start we brought the Merchant Navy and fishing maritime charity sector together like never before. This involved merging our existing working groups into one Covid-19 Seafarers’ Welfare Working Group and joining them together with the UK Chamber of Shipping, Trade Unions and the Government Department for Transport. This unique gathering of autonomous organisations met throughout 2020 providing important updates and a sector wide understanding of the ongoing crisis. Within a week our staff were working from home and our nationwide network of Port Welfare Committees were meeting via videoconferencing, disseminating information, and providing valuable local feedback. Staff also set about the major task of rebuilding the Seafarer Support IT platform and website to provide the central source of information and a state-of-the-art online search facility for anyone looking for help from the entire UK maritime charity sector. There was no chance of furloughing staff as the need to work differently and more closely together increased exponentially.

In my humble opinion, the way MNWB and its staff have supported seafarers’ welfare, our constituent organisations and each other during the ongoing pandemic has been outstanding. This would not have been possible without the steadfast support of the Chairman and trustees, many of whom have been extremely busy coping with Covid-19 issues themselves. As we all know an organisation is only as good as its staff and we are relatively few. I would therefore like to take this opportunity to personally thank Deputy Chief Executive, Sharon Coveney for her tireless support. Sharon has managed the staff and projects achieving creditable results in very difficult circumstances. The MiFi project helping serving seafarers communicate with family and friends is just one example of how the Board can work with front line welfare providers and make a real difference. I would also like to thank Helen van Gass and Aiden Harvey for their work dealing with a record number of welfare support cases and grants to individuals in need; Sarah Edward and Katherine Lockwood for their excellent management of our Port Welfare Committees around the country; Roxanne Le Voguer for her enthusiastic work expanding our social media presence and last but not least Celia Jackson for the professional manner she has provided executive administrative support.

Finally, I would like to thank all our constituent organisations and PWC members for working in partnership with MNWB. Their support and proactive collaboration enabled us to play our part in ensuring an unprecedented level of welfare support has been provided to seafarers, fishers and their dependants throughout 2020.

P D Tomlin MBE Chief Executive

Page 2

MERCHANT NAVY WELFARE BOARD (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

The trustees present their 73rd Annual Report and the audited Financial Statements for the year ended 31 December 2020. They have adopted the provisions of the Charities SORP (FRS 102) ‘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) (effective 1 January 2015) (‘SORP 2015’).

MISSION STATEMENT

"Supporting the provision of quality welfare services for seafarers and their dependants"

OBJECTIVES

The Key Objectives of the Merchant Navy Welfare Board are to:

• Help improve the effectiveness of all those charities caring for merchant seafarers, fishers and their dependants and this is done irrespective of nationality, religion or ethnic background.

• Strive to ensure that all welfare needs are met through the most effective deployment of resources.

• Facilitate the work of Constituent organisations through the provision of grants and specialist support services.

• Provide a dedicated welfare support and referral service for UK seafarers and their dependants.

• Manage and support Port Welfare Committees to develop local welfare services.

• Encourage and enable closer collaboration amongst both Constituent organisations and Port Welfare Committees.

• Represent and raise awareness of seafarers' welfare issues at national level.

N.B. The wording shown above summarises the formal Objects, a copy of which may be obtained from the Chief Executive.

STATEMENT OF PUBLIC BENEFIT

The objectives, activities, achievements and performance of the Board, which the charity undertakes for the public benefit, are clearly set out in this report. The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Board’s aims and objectives and in planning future activities and setting out the grant making policy.

In the interests of transparency, the trustees make the following statements regarding public benefit:

• The clear benefits provided by the Board are delivered through the key objectives set out above and reflected in the disclosure of charitable expenditure in the Statement of Financial Activities.

• The primary objective of the Board is to help improve the effectiveness of all those charities caring for merchant seafarers, fishers and their dependants and this is done irrespective of nationality, religion or ethnic background.

• No detriment or harm arising from the work of the Board has been identified.

• The beneficiaries are those charities caring for merchant seafarers, fishers and their dependants. This is directly in accordance with the terms of the Board's constitution.

• The Board is active within the United Kingdom, Gibraltar and the Falkland Islands, and has worldwide connections.

• People in poverty are at the heart of what the Board does and it is not aware of any Constituent member excluding benefits from anybody in poverty.

• There are no private benefits of which the Board is aware.

NATURE OF THE GOVERNING DOCUMENT

The Board is governed by Articles of Association adopted by a Special Resolution on 20 May 2010 and amended on 24 July 2015. These comply with the provisions of the Companies Act 2006 and the Charities Act 2011.

Page 3

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

TAXATION STATUS

The Board, as a registered charity in England and Wales, is exempt from taxation on its charitable activities. This has been confirmed by H M Revenue & Customs.

REGISTRATION DETAILS

The Board is registered in England & Wales, under company number 453053, as a Company limited by guarantee and as such it does not have share capital. The Board is also registered under number 212799 with the Charity Commission for England & Wales and in Scotland with the Office of the Scottish Charity Regulator (OSCR) under number SC039669.

REGISTERED OFFICE

The registered office of the Board is 8 Cumberland Place, Southampton SO15 2BH Telephone: [phone] E mail: [e-mail] Website: www.mnwb.org

WELFARE ORGANISATIONS SUBSCRIBING TO THE CONSTITUTION OF THE BOARD (CONSTITUENT MEMBERS)

Aberdeen Seafarers' Centre	Royal Merchant NavyEducation Foundation
Aged Merchant Seamen's and Sunderland Distressed Mariners’ Fund	Sailors' Children's Society
Broughton House	Sailors' Orphan Society of Scotland
Care Ashore	Sailors' Society
Erskine Hospital	Scottish Nautical Welfare Society
GrimsbySailors & FishingCharity	Scottish Veterans' Residences
Guild of Benevolence of the IMarEST	Seafarers’ Advice & Information Line
Humber Seafarers' Service	Seafarers UK (King George's Fund for Sailors)
Honourable Companyof Master Mariners Charities	Seamen's Christian Friend Society
Lighthouse Seafarers Mission (Falklands WB)	Seafarers Hospital Society
Lowestoft Fishermen's and Seafarers' Benevolent Society	Seamen's Welfare Fund (Gibraltar)
Manx Marine Society	Shipwrecked Mariners’ Society
Marine Society & Sea Cadet Association	SSAFA
Merchant NavyAssociation	Stella Maris, Great Britain
Merchant Navy Association of Northern Ireland	The Fishermen’s Mission
MerseyMission to Seafarers	TrinityHouse
Mission to Seafarers	TrinityHouse, Hull
Nautilus Welfare Fund	Tyne Mariners' Benevolent Institution
Queen Victoria Seamen’s Rest	Veterans’ Aid
Royal Alfred Seafarers' Society	WhitbyMerchant Seamen's Hospital Houses
Royal Liverpool Seamen's Orphan Institution	Willie Seager Memorial Trust
	Wilson’s Mariners’ Homes

N.B. These are not connected Charities within the meaning of the SORP 2015

Page 4

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Under its Articles of Association, the Board is no longer required to hold a formal Annual General Meeting. For any constitutional changes it will hold an Extraordinary General Meeting (EGM) to which all Constituent members will be invited.

TRUSTEES AND MEMBERSHIP OF THE COUNCIL

The Board's trustees are collectively known as its Council. New members are appointed by Council, primarily on the basis of the skills and experience required to carry out their responsibilities effectively in the best interest of the charity. Details of Council membership during 2020 and changes to the date of this report were as follows:

Patron: The Lord Prescott Chairman: Capt. A Cassels Vice: A M Dickinson

Ship Owners' & Ship Managers’ Representatives:

Capt. A Cassels, UK Chamber of Shipping (Re appointed 30.06.18) (Chairman) A Hodgson, UK Chamber of Shipping (Appointed 30.06.20) T E Springett, UK Chamber of Shipping (Re appointed 30.06.19) M Rawson, UK Chamber of Shipping (Appointed 18.12.19) D Colclough, UK Chamber of Shipping (Retired 30.06.20)

Trade Union Representatives:

D Appleton, Nautilus International (Re-appointed 30.06.20) M Carden, RMT (Re appointed 30.06.18) A M Dickinson, Nautilus International (Vice Chairman) (Re appointed 30.06.19) D Procter, RMT (Appointed 30.06.20) S Todd, RMT (Resigned 30.06.20)

Voluntary Sector Representatives:

A Campbell, Queen Victoria Seamen’s Rest (Re appointed 30.06.18) D Thomas, Sailors' Children's Society (Re appointed 30.06.19) Capt. J Osmond RN, Shipwrecked Mariners’ Society (Appointed 19.03.18) Revd. I Ajibade, Mission to Seafarers (Appointed 30.06.19)

Persons able to make a particular contribution of value to the Charity because of their specialist expertise:

A Godfrey, Fishermen’s Mission (Re-Appointed 02.11.19) G Lane, Chartered Accountant (Re appointed 30.06.19) C Spencer, Seafarers UK (Appointed 30.06.19)

Observer Status

J Carlton, Maritime & Coastguard Agency N Atkinson MNM, Maritime & Coastguard Agency (retired from MCA 31.10.2020)

The Board wishes to place on record its appreciation for the contribution made by all members of the Council, in particular long standing trustees; David Colclough and Steve Todd, representing Ship owners and Trade Unions respectively. The Board would also like to record its thanks to former MCA observer Neil Atkinson.

INDUCTION AND TRAINING OF TRUSTEES

Trustees are either appointed or elected. The UK Chamber of Shipping is responsible for appointing the Ship Owners' & Ship Managers’ Representatives, currently four in number. Nautilus International and the Rail and Maritime Transport Union (RMT) are responsible for appointing the Trade Union Representatives, currently two each. The Constituent Maritime Charities elect the Voluntary Sector Representatives, currently four. The Council appoints those persons able to make a particular contribution, currently three. Each appointment, or election, for all backgrounds, is for a three year term of office.

Page 5

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

All newly appointed trustees are provided with an induction pack that includes the governing documents, latest annual report, recent minutes of Council and other relevant meetings, publicity literature and the Charity Commission's relevant publications and information leaflets. Within the first few months of their election, Council members are invited to attend an induction at the Board's offices where they are introduced to the staff, given a comprehensive insight into the daily operation and a briefing covering the Board's current strategy and projects. The 'Trustee Role Description', outlining the general duties of the Board, is reviewed annually.

PAYMENTS TO TRUSTEES

No member of Council receives any payment for acting as a trustee, other than, on occasion, out of pocket expenses.

CONFLICTS OF INTEREST

The Board maintains a register of interests of all trustees and senior staff. Additionally, at each meeting of the Council, all those present are asked to declare any potential conflicts of interest when appropriate.

COMPANY SECRETARY

Mr P. D. Tomlin MBE, Chief Executive

PROFESSIONAL ADVISERS

Auditors:

James Cowper Kreston, The White Building, Southampton, Hampshire, SO15 2NP

Bankers:

CAF Bank Ltd, 25 Kings Hill Avenue, West Malling, Kent, ME19 4JQ

Solicitors:

Blake Morgan LLP, Tollgate, Chandlers Ford, Eastleigh, SO53 3LG

Investment Manager:

Bordier & Cie (UK) PLC, 23 King Street, St James’s, London, SW1Y 6QY

Pension Advisers:

Chadney Bulgin LLP, 89 Fleet Road, Fleet, Hampshire, GU51 3PJ

Accounts Administration:

Winchester Bourne Ltd, Sullivan Court, Wessex Business Park, Colden Common, Winchester, SO21 1WP

Page 6

MERCHANT NAVY WELFARE BOARD (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

STAFF

The Board employs eight full time members of staff directly in its work. Details of staff members employed during 2020 were as follows:

Mr Peter Tomlin MBE Chief Executive Miss Sharon Coveney Deputy Chief Executive Miss Sarah Edward Port Welfare Committee Manager Mrs Katherine Lockwood Port Welfare Committee Manager Mrs Helen van Gass Welfare & Training Manager Mr Aiden Harvey Projects & Welfare Coordinator Ms Celia Jackson Executive Assistant & Office Manager Miss Roxanne Le Voguer Communications Administrator

Long standing Welfare Support Manager, Sally Oliver, retired at the end of 2020. The Board wishes to record its thanks for her outstanding support of seafarers’ welfare and wishes her a long and happy retirement.

The Council is responsible for:

• all staff employment contracts based on advice from the Board’s appointed human resources advisers.

• agreeing the employer’s and minimum staff contributions towards the pension scheme.

• appointing a financial adviser to advise on the appointment of a pension provider.

Remuneration Policy

The Board is committed to ensuring that staff are adequately remunerated to ensure that it attracts and retains the right skills to achieve the charity’s objectives.

In accordance with SORP 2015, the Board:

• discloses all payments to trustees (these are out of pocket expenses only).

• discloses staff in receipt of more than £60,000 salary including gross pay and taxable benefits.

• discloses the pension policy.

• confirms that there are no benefits in kind.

The Board has appointed a remuneration sub committee, consisting of the Chairman and two trustees, advised by the Chief Executive (with exception of his own remuneration), which meets to review and recommend the pay for all staff.

The sub-committee:

• reviews the Board’s salary structure using independent market benchmarking and makes amendments, when appropriate, to ensure that salaries remain competitive.

• approves the annual cost of living increase for all staff taking into account the most recent inflation figures.

• approves any consolidated pay awards over and above the cost of living index.

VOLUNTEER HELP

The Board does not utilise volunteers for its day to day activities

ORGANISATIONAL STRUCTURE AND DECISION MAKING

The Board's Council holds three or four meetings annually. These are used to review current strategy, financial matters, investments, services to Constituent charities, grant distribution and agree future policy. In addition, it holds joint biennial meetings for Constituent and Port Welfare Committee members. In the event of needing to make any amendments to the Articles of Association the Board must convene an EGM for its Constituent members.

Page 7

MERCHANT NAVY WELFARE BOARD (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The Council takes the view that internal controls provide adequate safeguards. All transactions are properly authorised and recorded thus ensuring that any material errors and irregularities are detected and prevented.

RISK ASSESSMENT

The Board has a formal risk management process, which identifies the role for the Council as:

• ensuring that the identification, assessment and mitigation of risks are linked to the achievement of the Board's operational objectives.

• ensuring that the process covers all areas of risk e.g. financial, governance, operational and reputational and is focused primarily on major risks including those arising from investment issues.

• ensuring that the process seeks to produce a risk exposure profile that reflects the Board's views as to the level of acceptable risk.

• reviewing and considering the principal results of risk identification, evaluation and management.

To ensure that risk management is a continuous process and embedded in all management and operational procedures, a review of the risk profile is completed annually by the Chief Executive. This includes an evaluation of current activities and risks posed, the effectiveness of controls in place that mitigate material risks posed and an action plan to develop additional controls where necessary.

COMPLAINTS PROCEDURE

The Board has in place a policy to deal with any complaints from the public or other organisations.

FINANCIAL CONTROLS

The Board believes that the system of internal control provides adequate assurance that assets are safeguarded, transactions are properly authorised and recorded and that material errors and irregularities are either prevented or detected at an early stage. The financial controls are reviewed annually.

FINANCIAL REVIEW

The Covid-19 pandemic had a significant impact on the financial aspect of the Board during 2020, Investment income reduced as a result of restrictions on Companies' ability to pay dividends. A number of planned activities were unable to occur resulting in reduced expenditure in most areas. The effect of this was the deficit of £433,075 was lower than budgeted. The Investment portfolio incurred overall losses of £188,983 (2019 - gains £1,689,203).

At the year-end investments were valued at £13,956,479 (2019 - £14,959,369) and total Funds amounted to £14,516,650 (2019 - £15,138,708 - restated).

RESERVES POLICY

The Council annually reviews the level of the Board's reserves available to meet the ongoing ability to finance administrative costs, services to Constituent members and grants. In order to determine and monitor the appropriate level of reserves, the Board assesses likely future demand for grants and services against income expectation. Council, when determining the financial forecasts, considers the appropriate level of reserves. The Board takes the view that the investments held are adequate to generate funds to sustain the current levels of demand for the foreseeable future.

Page 8

MERCHANT NAVY WELFARE BOARD (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

INCOME

Donations and Legacies

Whilst the Board does not actively fundraise amongst the public, it is always extremely grateful for any donations and legacies, which are fully utilised in support of its objects. During 2020 a total £1,913 (2019: £2,282) was received in donations and legacy income of £7,000 was received (2019: £137,697). The Board does not work with any commercial participators.

Government Contracts & Grants

The Board does not normally seek grants or contracts from central or local government. However, central government approached MNWB during the pandemic to participate in an ongoing partnership seafarers’ communications project. The MiFi project (more is detailed below) entailed equal £10,000 grants from MNWB, Seafarers UK and Department for Transport, who paid their contribution in early 2021.

Investment Income and Policy

The Board annually provides its investment managers, Bordier & Cie (UK) PLC, with an investment policy. Their costs are based on the number of transactions each quarter together with fees charged for the management of the investment portfolio. Total costs amounted to £45,619 (2019: £49,327).

The Board utilises benchmarks to monitor investment performance and reviews investment returns on a quarterly basis.

The primary source of income is from investments and a targeted 6% total return is a key part of the policy. The Board accepts this is a risk strategy intended to provide greater return. Whilst this continues to be maintained, it is reviewed annually and can be revised at any time in light of needs and changing circumstances. The most recent industry review indicates that the number of older seafarers and their dependants is expected to decline slower than last researched but will still accelerate over the next 15 years or so. As a counter balance there is evidence that the needs of those receiving support are increasing and beneficiaries are living longer. At the same time there remains an ongoing need to support port based welfare services for working seafarers. The long term negative impact of the Covid-19 pandemic will be assessed on an ongoing basis.

Page 9

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The Asset Allocation as at 31st December was as follows:

Page 10

MERCHANT NAVY WELFARE BOARD (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Social Investment Policy

The Board’s investment policy is implemented through the use of collective investment funds rather than, for example, individual company shares. Given the diversified nature of underlying investments the Board has not imposed any specific ethical or geographical restrictions with regard to investment but expects the spirit and objectives of the United Nations backed Principles for Responsible Investment (PRI) guidelines to be observed by the underlying investment fund managers. These Principles look to encompass environmental, social and corporate governance matters into firms’ investment and decision making processes. During 2020, the Board instructed its Investment Managers that it expects underlying managers to not only adopt the Principles for Responsible Investment as supported by the United Nations (UNPRI) but also to be signatories and its policy has been strengthened to include a commitment to be provided with an ESG (Environmental, Social, and Corporate Governance) report on an annual basis.

Grants Added Back

Some grants were not fully expended and a total of £111,958 was added back into the Board's funds (2019 £5,493).

Restricted Funds

The Board maintained restricted funds for support programmes and projects, which are covered elsewhere in the report. These are as follows:

• Vehicle Replacement Programme Fund

• MN Medal Fund

• MiFi Project

• Seafarer Support (now a ‘service to constituents’)

• International Port Welfare Partnership Programme

EXPENDITURE

Staff

The Board employs eight full time members of staff directly as Sally Oliver, Welfare Support Manager resigned at the end of the year. The Board remains under contract to the International Seafarers’ Welfare Assistance Network (ISWAN) for the IPWP programme for a period of 3 years which, subject to receipt of grants from funding partners and satisfactory annual reviews, is scheduled to terminate in 2022.

Pensions

In line with legislation set down by the Pensions Regulator all members of staff are entitled to enter a contributory group personal pension plan provided by the Board after 3 months’ service, and all those currently employed are included (staff aged between 21 and 65 are automatically enrolled as required under pensions legislation). Following a satisfactory probationary period, normally 6 months, all new full time staff members are offered a contract which allows them to receive an enhanced employer’s contribution, conditional upon them also making an agreed increased minimum contribution.

Offices

The Board has a 10 year repairing lease for its offices at 8 Cumberland Place, Southampton SO15 2BH which commenced in December 2020. A full term review took place in early 2020 and a new rental amount was agreed for the next five years. These premises adequately meet the Board's needs for now and the short term. The current lease is due to terminate on 30th November 2030 with a break point in 2025.

Professional fees

The Board incurred professional fees in 2020 for audit and accountancy purposes.

Auditors and the Appointment of Auditors

The Board is required to have its accounts audited annually. Under the Articles of Association, the Council is responsible for appointing the auditor. The Board appointed James Cowper Kreston as auditors.

Page 11

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Accountancy fees

The Board's accounts administration is undertaken by Winchester Bourne Ltd, for which it pays a fee. The Board would, once more, like to place on record its gratitude to the long standing Accounts Manager, Mrs Jane Roberts, for all her efforts and assistance.

Membership of Organisations

The Board is a subscribing member of the following charitable organisations:

• Maritime Charities Group (MCG)

• International Seafarers’ Welfare and Assistance Network (ISWAN)

• National Council for Voluntary Organisations (NCVO)

• The Association of Charitable Organisations (formerly – Association of Charity Officers) (ACO)

• • Confederation of Service Charities (COBSEO)

ACHIEVEMENTS, PERFORMANCE AND IMPACT

GRANTS

Whilst the Board’s main priority is that of providing support services to its Constituents, PWCs and working groups, its secondary priority is to provide capital grants. The amount available for this purpose is based on the overall return from the investment portfolio after deducting revenue costs and services to Constituents. In 2020 an overall sum of £190,866 was awarded in capital grants (2019 - £330,999). Before allocating grants Council reviews the quality of each application and the impact that this would have on the maritime community. In some cases, it will endeavour to share a grant with other organisations. Under its Small Grants Programme, the Board has authorised the Chairman and Chief Executive to allocate individual grants of up to £5,000 throughout the year, up to a total annual limit of £50,000.

Grants Awarded

• Care Ashore, financial audit - £5,000

• Department for Transport, MNWB & Seafarers UK MiFi project - £10,000

• DMWS, Hospital support of vulnerable MN personnel - £5,000

• Humber Seafarers’ Service Ltd, Immingham Seafarers' Centre kitchen/dining re-decoration - £3,930

• • Lighthouse Seafarers’ Mission, kitchen/laundry refurbishment - £3,000

• Maritime Charities Group, annual contribution - £10,000

• Mediterranean Mission to Seafarers, replacement of windows, groundfloor, Flying Angel - £4,086

• Merchant Navy Honours Consultative Committee: annual contribution - £100

• Mission to Seafarers, Falmouth, essential roof refurbishment - £4,776

• Mission to Seafarers, Humber, part-funding and refurbishment of Groveport Seafarers’ Centre - £5,000

• Mission to Seafarers, Scotland, Grangemouth Seafarers’ Centre Major Refurb - £40,000

• Mission to Seafarers, South Tees, website - £1,100

• MSSC, Redundancy/Retraining Project - £10,000

• Nautilus Welfare Fund, specialist bath - £11,994

• QVSR, roof repairs - £25,000

• QVSR, mobility scooter parking extension - £7,500

• Sailors’ Children’s Society, children’s education home computer scheme - £25,000

• Stella Maris, new centre Shoreham - £17,640

• The Fishermen’s Mission, Helston Welfare Hub - £1,740

Grants to Joint Projects Managed by MNWB

Transfers from unrestricted to restricted funds were also made in the year in respect of the following:

• MNWB Vehicle Replacement Programme: annual contribution - £Nil (2019 £47,000)

• MNWB IPWP Partner Programme: annual contribution - £Nil (2019 £50,000)

• Department for Transport, MNWB & Seafarers UK MiFi project - £10,000

Total of grants awarded to jointly funded projects in 2020 was £10,000 (2019 £97,000)

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MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The Board decided with effect from January 2021 to change to more agile grant approval process. The new process allows grants to be issued on a regular basis as the Charity have made funds available for distribution from the beginning of the financial year. This has been evidenced by an increased bank balanace at the end of December 2020.

Covid-19 Emergency Response Fund

The Council approved funding to enable several Constituents organisations to respond quickly to the pandemic with help purchasing items such as PPE. Overall, £18,480 was awarded in support of Care Homes and accommodation providers at Royal Alfred Seafarers’ Society, Sir Gabriel Wood’s Mariners’ Home, Mariners Park, Care Ashore, and QVSR. The latter also involved support for abandoned seafarers in the Port of Tilbury.

PROJECTS

Evaluation Studies

Over the years the Board has conducted evaluations and/or feasibility studies of ports and various seafarers’ welfare facilities on behalf of the maritime sector. This helps promote the most effective and highest standards of welfare services for both serving and retired seafarers within the UK and Gibraltar.

ISWAN’s International Port Welfare Partnership Programme (IPWP)

The UK boasts the most developed voluntary PWC system supporting seafarers’ welfare in ports across the globe and provides an excellent example for other countries and ports around the world to follow. The success of the UK system influenced ILO MLC, 2006 4.4 encouraging the establishment of similar welfare boards at local, regional and national level in order to review, support and promote seafarers’ welfare in ports worldwide. The pandemic has placed additional hardships on seafarers and their families and highlighted the need for even more collaborative working and co-ordinated planning of shore-based welfare support to forge closer relations with port owners/authorities. In 2020 Canada established a National Seafarers’ Welfare Board and New Zealand approached the IPWP team to help establish national and local welfare boards. The Deputy Chief Executive attended several remote discussion meetings to offer advice and support to maritime communities requiring help with the establishment of welfare committees; including Richards Bay, Durban & Vancouver. This year extensive work was carried out preparing the first phase of the ‘Port Visitor’ software platform which is essential to providing scalable online support. This unique software will help ports create their own welfare boards and produce reports that enable them to review the provision of seafarers’ welfare and facilities. ISWAN, ICMA, Mission to Seafarers, Stella Maris and Sailors’ Society have all pledged their support for the project. Following receipt of project funding, beta testing of the software will commence in 2021 and MNWB will play a key role in testing and developing the Port Visitor IT platform, setting benchmarking standards through its UK PWCs. Once further funding has been received an additional staff member will be employed to co-ordinate the project on a short-term contract.

Sea Shed Digital Project

Although the highly successful ‘Sea-Shed Digital’ pilot project formally concluded in 2019, the group continued to meet throughout 2020 providing much needed support during the pandemic and have offered to share their positive experience with other centres.

Port Levy Project

The innovative Tyne port levy scheme consists of a partnership between the Port of Tyne, MNWB and the Tyne PWC. The scheme has been raising funds to support the cost of port based, multi-agency welfare services on the Tyne since January 2016. The Port of Tyne generously matches 50p for every £1 collected through the levy scheme from vessels visiting the port. The fund is distributed biannually to the three societies delivering welfare services on the Tyne. Despite a 25% drop in shipping during 2020 as a result of the pandemic, funds totaling £14,565 were raised and shared between the Mission to Seafarers, Fishermen’s Mission and Apostleship of the Sea. The levy scheme also retains a contingency fund of £5,000. The Board encourages ports without levy schemes to adopt the Tyne model.

Port Based Welfare: Vehicle Replacement Programme (VRP)

The VRP is managed by the Board and is jointly funded by MNWB, ITF Seafarers’ Trust, Seafarers UK and Trinity House. In 2020, the VRP paid out grants totaling just over £104,000 to help the seafarers’ welfare organisations purchase 8 new port-based welfare vehicles. The impact of the Covid-19 pandemic on seafarers’

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

shore leave and ship welfare visiting resulted in a smaller number of vehicles replaced in 2020. Therefore, after a review of the number of outstanding vehicles needing to be replaced and discussions with funders it was decided to restart the programme in 2021 with funds from 2020. The vehicle replacements that were not carried out in 2020 have now been carried forward to 2021. The replacements that were originally listed for 2021 have been put back to 2022, and so on. This, in effect, has changed the programme from a 6-year to a 7-year renewal cycle. It is hoped that by giving the societies a little breathing space they will be able to reassess their vehicle needs going forward and that the programme will realign by the end of 2021.

MiFi Pilot Project / MiFi Partnership Programme

The MiFi pilot project was due to finish in May 2020, however the funders, ITF Seafarers’ Trust (ITFST), kindly agreed to extend the project by a further 3 months to help during the Covid-19 pandemic. In July 2020 the Department for Transport, MNWB and Seafarers UK agreed to fund a collaborative UK Port Welfare MiFi Partnership Project. Launched on 28 July 2020, the aim of the project is to provide seafarers on ships visiting UK ports with access to free internet to connect with their families and friends. This in turn, ultimately helps to improve port-based welfare services and seafarers’ welfare and wellbeing, particularly during Covid-19. Some, but not all ships provide their crew members with access to good quality internet and our project will ensure that as many as possible have the opportunity to keep in contact with their loved ones during these difficult times. MNWB is proud to manage this worthwhile partnership initiative and will continue to work in partnership with all the participating Maritime Welfare Charities (MWCs) on behalf of the project funders to deliver a successful partnership project.

In total there are 60 MiFi units deployed throughout the UK to the following MWCs who provide welfare visits to ships arriving in UK ports: Aberdeen Seafarers’ Centre, Fishermen’s Mission, Liverpool Seafarers’ Centre, Mission to Seafarers, Queen Victoria Seamen’s Rest, Sailors’ Society, Seamen’s Christian Friend Society and Stella Maris. During 2020, the team arranged for unlimited data allowance on a number of devices to help support crew on the cruise ships stranded in Tilbury and Bristol, and fishers in Kilkeel who had to isolate as their skipper had tested positive for Covid-19.

Environment & Climate Change Awareness

The Board is aware of the need to act in an environmentally friendly manner and meet the challenges of climate change. To that end, although electric vehicles are not permitted on some port terminals, the Board encourages the adoption of electric or hybrid vehicles as part of the jointly funded Port Welfare Vehicles Replacement Programme and the first electric vehicle has been purchased for the Port of Aberdeen. Normally the Board looks to reduce its carbon footprint by holding ‘face to face’ PWC meetings around the country in easily accessible and central locations, encouraging meetings to use technology and be paper free. However in 2020, because of the pandemic, the vast majority of meetings were held via video conferencing. A combination of this and ‘face to face’ meetings may be considered in the future to further reduce our carbon footprint.

PUBLICATIONS

The Board, on behalf of its Constituents, publishes, distributes and regularly reviews the following publications, which are also included on the Board’s website:

Port Information Leaflets: The Board now has a catalogue of 43 Port Information Leaflets covering ports across the UK and Gibraltar. In 2020, 6 leaflets were published (including 2 new additions to the catalogue) with a total of 12,000 paper copies delivered to the ports in question for distribution to visiting seafarers. The leaflets are also available to view and download from our website. The global pandemic has directly affected seafarers’ shore leave, ship welfare visiting and printing. As a result, the Board will liaise with the local Port Welfare Committees (PWC) in order to update leaflets to reflect information on facilities and services as soon as practicable.

Remembering those left behind: this booklet continues to provide advice for both those seeking to make funeral plans before their death and for people who are faced with making the funeral arrangements for a friend or loved one.

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

TRAINING COURSES

Unfortunately, due to the ongoing Covid-19 crisis the Board had to postpone its instructor led (in person) training courses in 2020. To help facilitate learning during these exceptional times, the board concentrated its resources on the creation and provision of bespoke eLearning. During 2020 the Board provided 11 trainer led Zoom (video conferencing) courses in which 86 people participated.

The following remote and online courses were offered to our Constituent organisations and PWC members:

Mental Health: Start the Conversation (E-Learning online course) Remote Workers’ Health Safety and Welfare (E-Learning online course) International Ship and Port Facility Security Code Awareness Course (facilitated via Zoom) Drug & Alcohol Awareness Course (facilitated via Zoom)

Seafarer Mental Health & Wellbeing Awareness (facilitated via Zoom) This popular bespoke course uses the MCG and MNTB Standard for Seafarers’ Mental Health Awareness and Wellbeing Training Protocols as a benchmark to ensure the course achieves the intended learning objectives.

Ship Welfare Visitor The Board’s Ship Welfare Visitor online course is an excellent opportunity for new ship visitors and those who undertook the ‘face to face’ course some years ago to refresh their knowledge. During 2020 there were 85 local and international registrations for this popular course. Work on updating both the online and the trainer led versions of the SWV course is underway.

WORKING GROUPS

Working groups provide Constituent members with an opportunity to work together on issues affecting seafarers and the maritime welfare providers. These collaborative groups share information of common interest; monitor the impact of changes; make recommendations based on best practice; consider priorities, particularly in relation to funding arrangements and act as a co-ordinating lobbying force to make representation to maritime funding charities and other appropriate organisations. From the outset of the pandemic, MNWB combined the Serving Seafarers Working Group and Older Seafarers & Families Working Group to form the Covid-19 Seafarers’ Welfare Working Group. This brought together the Merchant Navy & Fishing Fleets (MN/FF) welfare sector with Zoom working group meetings involving the UK Government (Department for Transport), MCA, Chamber of Shipping, maritime Unions, British Port Authority, major maritime charity funders and ‘front line’ welfare providers. These meetings were initially held weekly and then on a monthly basis. Meeting information and feedback was disseminated to the Board’s 17 UK Port Welfare Committees covering all UK ports, Gibraltar and the Falkland Islands. The forum created a positive connection between the Government and the maritime charity sector. An average of 30 participants attend the weekly meetings to ensure welfare concerns are understood across the sector.

PORT WELFARE COMMITTEES (PWCs)

One of the many ways that the Board is able to “support the provision of quality welfare services for seafarers and their dependants” is through its welfare boards, otherwise known as PWCs. These extremely important committees cover ports throughout the United Kingdom and Gibraltar. The Board also supports the Falkland Islands’ Port Welfare Board. Committees represent the local maritime community and consist of members with a vested interest in seafarers’ welfare. PWCs are strategic partnerships whose role is to review the provision of seafarers’ welfare locally, share expertise and make recommendations for changes and improvements. Each committee usually meets three times a year, with one meeting including an AGM.

The Board ensures that membership of its 15 UK PWCs and Gibraltar Seafarers’ Welfare Board (GSWB) has, wherever possible, representatives of Government, ship owners, unions, port owners/authorities and voluntary societies so that seafarers’ welfare services can be deployed, reviewed and supported in the most effective manner.

PWC meetings held very early in the year managed to meet in person but as the pandemic took hold, the PWC members embraced remote meetings and the Scottish PWCs in particular with their wide geographical area, saw an increase in attendance. In total 47 meetings were held in 2020; 48 are planned for 2021 and it is hoped that meetings will be able to resume in person later in the year. The Board would like to record its thanks to all

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

PWC members for their continued support during the challenges of 2020. The PWCs adapted extremely well to meeting online, and the committees’ efforts to support seafarers across all regions during the pandemic was clearly evident.

Where appropriate, welfare programmes, projects and issues are communicated between PWCs, Working Groups and the Board. In 2020 the main issues dominating PWC meetings were the crew change crisis, lack of access to shore leave and welfare visits as a result of the pandemic. These issues were reported all the way to Government via the Covid-19 Working Group. Membership has remained consistent throughout the year with 354 representatives from organisations that include the MCA, Border Force, local authorities, police, port authorities, port health, ship owners, the maritime training colleges, seafarers’ unions and the voluntary societies.

The Board wishes to record its thanks to Capt David Parsons (former CEO) who voluntarily carried out its biennial support visit to the Falkland islands and submitted an excellent valuation report.

COMMITTEE CHAIRMEN

Committee	Chair	Committee	Chair
Bristol	Mr G Strickland	North & East Scotland	Mr D Kenwright
Central & West Scotland	Mr J Hood	Northern Ireland	Mr P Hayes
East Anglia	S Supt T Jenkins	North West	Mr J Wilson
Falkland Islands PWB	Mr S Wallace	South Wales	Mr E Watts MBE
Gibraltar SWB	Capt. J Ferro MBE	Southern	Capt. M Phipps MBE
Haven	Capt. A Parker	South West	Mr D Paul
Humber	Mr J Pass	Tees	Capt. J Drewitt MBE
London and South East	Mr A Campbell	Tyne	Mr S Clapperton
Milford Haven	Capt. M Andrews

The Board awarded 21 Certificates of Commendation or Appreciation in 2020. These certificates are awarded to PWC members who have demonstrated a notable contribution to the provision and improvement of seafarers’ welfare.

PWC PROMOTIONAL GRANTS & EMERGENCY RECREATIONAL FUND FOR ABANDONED SEAFARERS & FISHERMEN

The Board sets aside an annual grant of up to £500 per PWC to promote seafarers’ welfare and raise the profile of each committee locally; sadly no events were able to be held in 2020 due to the pandemic. However the Board’s emergency fund was utilised to support stranded seafarers in Tilbury during the early days of the pandemic.

WEBSITES & SOCIAL MEDIA

MNWB operates 4 websites www.mnwb.org, www.merchantnavymedal.org, www.portvisitor.com (awaiting official launch) and www.seafareresupport.org. The Board’s social media presence has continued to grow throughout the year. From the onset of the pandemic the Board focused on raising awareness of the help seafarers could seek from our constituent members as well as the Seafarer Support referral service. MNWB’s social media audience has continued to grow, the Seafarer Support Facebook page reached over 1,000 likes/followers and the MNWB Twitter page has gone from 733 (December 2019) to 1,485 (December 2020). The aim of the Board’s social media channels is to improve outreach and proactively promote the work of its constituent members along with the Seafarer Support and the IPWP programmes. All three projects have their own pages on Facebook and Twitter with MNWB also on Instagram. The Board has also created numerous ‘in house’ video clips specifically for social media, which have generated over 300 views.

Caseworker Home Visits & Sea Searches

The Board is often contacted directly by seafarers and their families in need of support or by external agencies that work on their behalf. Contact is made through either the Seafarer Support service or directly to the Board. The Board acts as the ‘clearing house’ for those Merchant Navy/Fishing Fleet personnel seeking welfare support and/or financial assistance from other maritime charities. Other than in an emergency, the Board does not directly provide grants to individuals, however, the Board does arrange home visits by trained caseworkers

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

to review all applications before directing them on to the most appropriate sources of help. Initially, the pandemic had an adverse impact on the home visit aspect of case-working, but cases are now being processed via phone and email. This year saw a steady increase in requests for SSAFA caseworkers and referrals are being acted on in a fast and efficient manner. The Board arranged a total of 182 caseworker home visits. The Shipwrecked Mariners' Society also work in collaboration with the Board and arranges their caseworker visits directly with SSAFA. The Board’s welfare team helped individuals in need secure grants, in addition to state benefits, from our maritime charity partners totalling over £134,000.

To qualify for grants from the maritime charities sector it is necessary for seafarers to prove their sea service. Seafarers are issued a Seaman’s Discharge Book which has a record of all the ships and dates they sailed on. As proof of service is required to apply for funding from the maritime funding charities, the Board can assist by financing a search of the National Archives so that caseworkers can be provided with a duplicated copy of the seafarer’s original discharge book. After 1972, when a new Merchant Shipping Act came into force, replacement Discharge Books were provided, however, duplicates are no longer produced. The Board arranges Sea Searches on behalf of SSAFA, Royal British Legion and Blind Veterans UK, amongst others. The National Archives were closed for most of 2020 but the Board was able to organise and fund 36 sea searches that helped secure assistance for seafarers and their dependents.

Welfare and Emergency Fund

An MNWB emergency fund has been established for small grants, normally up to £150. This grant can be awarded in cases where an eligible vulnerable client has been identified, normally by a caseworker, as having no visible means of support. This enables them, normally through a voucher, to purchase some bare necessities whilst their application for assistance is being processed. In 2020, seven such grants were awarded.

Seafarer Support

Seafarer Support is a multi-channel but primarily online welfare referral service that is operated and managed by the Board on behalf of all the UK maritime charities. As part of the MNWB digitalisation programme, the Board has totally rebuilt the Seafarer Support platform, which went live on 17 August 2020. The website has artificial intelligence search facilities to signpost users with the most up-to-date information on the charities best suited to help. The system also has a live ‘chatbot’ facility to enable users to communicate directly with the welfare team in real time.

Seafarer Support helped generate ‘grants to individuals’ for clients of over £134,000 from our maritime grant funding partners: Shipwrecked Mariners’ Society, Seafarers Hospital Society, Nautilus Welfare Fund, Guild of Benevolence, The Honourable Company of Master Mariners, Tyne Mariners Benevolent Fund, Sailors’ Children’s Society and the Royal Merchant Navy Education Foundation. Numerous other support services would also have been supplied to clients by the maritime charities via the online search engine, which enables potential clients to search the Seafarer Support website www.seafarersupport.org

Overall, the number of unique visitors to both versions of the website totaled 7,627 during 2020.

The Board has continued to actively promote the service on social media with a focus on improving its presence on Facebook and Twitter. We launched a professional social media programme to improve the outreach of all maritime charities, particularly the MN/FF sector late in December. The current profile has highlighted the benefits of the referral service, including the total amount of grants that have been generated for beneficiaries each month along with anonymised case studies. Over the course of year, the Seafarer Support Facebook page has increased its likes and doubled its followers on the Seafarer Support Twitter account.

Red Ensigns for Funerals

A small but an important ongoing project involves the provision of Red Ensign flags that are requested for the funerals of MN personnel.14 flags were sent out during 2020 and the Board is extremely grateful for the voluntary donations it received as a result of this free service.

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MERCHANT NAVY WELFARE BOARD (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

EXTERNAL PARTNERSHIPS & COLLABORATIONS

FESTIVAL OF REMEMBRANCE

In previous years, the Board has worked with the Royal British Legion to organise and fund Merchant Navy representation at the high profile, annual Festival of Remembrance event at the Royal Albert Hall. Due to the pandemic, in 2020 The Royal British Legion developed last minute plans for a limited Festival of Remembrance and, together with the BBC, created a pre-recorded programme. Working with the support of Warsash Maritime School and Princess Cruises, the Board arranged a small delegation of three officers and three cadets to represent the Merchant Navy.

MERCHANT NAVY FUND

The Board is not an active fundraiser but works in close partnership with Seafarers UK to promote the ‘Merchant Navy Fund’ (MNF). The Board provides its unique knowledge and understanding of the Merchant Navy and Seafarers UK utilises its fundraising expertise. Whilst the Fund is administered by Seafarers UK, the Board normally meets half the costs and contributed £9,000 in 2020. This initiative is intended to raise money from MN associated personnel and their families specifically to support those with a MN background. In 2020, the MNF was linked to the successful ‘Fly the Red Ensign’ campaign.

MERCHANT NAVY HONOURS CONSULTATIVE COMMITTEE

The Board administers the Merchant Navy Honours Consultative Committee (MNHCC) on behalf of the UK maritime industry. The committee, formally known as the Merchant Navy Medal Committee, meets by agreement with the Department of Transport and acts in an advisory capacity. The MNHCC can recommend awards to persons from the maritime industry that include higher Honours and medals for acts of courage. The Board operates the Merchant Navy Medal website www.merchantnavymedal.org and will continue to provide the Committee secretary and administer the MNM restricted fund. Recipients of the 2020 awards were as follows:

• Captain Neil Atkinson, for services to maritime education

• Mr Maximillian Alan Bingle, for services to maritime safety

• Captain Colin Brown, for services to the Merchant Navy and maritime careers

• Mr Frankie Horne, for services to fishing safety

• Mr Trevor Jones, for services to fishing safety

• Captain Derrick Kemp, for services to maritime careers and training

• Ms Fazilette Khan, for services to the marine environment

• Captain Christopher Locke, for services to ports and seafarer welfare

• Captain Malcolm Mathison, FEI, MNI, for services to the Merchant Navy

• Lt Cdr Anthony D Muncer RD RNR, for services to the Merchant Navy and maritime charities

• Mrs Helene Peter-Davies, for services to women in maritime

• Mr Guy Platten, for services to the maritime sector

• Ms Joanne Rawley, for services to seafarer wellbeing and mental health

• Mr Martin Shaw, for services to maritime safety

• Captain Nicholas Spencer, for services to the Merchant Navy

• Mr Kenneth John Usher, for services to the maritime unions

• Captain Kevin Vallance, for services to maritime safety

• Dr Alan Wall, for services to maritime education and safety

• Captain Jonathan Warren, for services to maritime education

• Mr Stephen Watkins, for services to maritime apprenticeships

ANNUAL AWARD FOR SERVICES TO SEAFARERS’ WELFARE 2020

This year’s award was jointly presented to Jane Davies, Registered Manager of Mariners’ Park Care Home and Nautilus Care and to John Attenborough, Mission to Seafarers Port Chaplain, Southampton. Robert Courts MP, Minister for Aviation and Maritime attended the Board’s Covid-19 Seafarers’ Welfare Working Group to present the award.

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MERCHANT NAVY WELFARE BOARD (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Jane Davies was recognised for her dedication to her work as Registered Manager for both the Mariners’ Park Care Home and its Home Care Service, Nautilus Care. She has demonstrated consistent and complete dedication to creating and maintaining the highest standards for retired mariners and dependants in her care as well as unparalleled support for her staff particularly when faced with the unprecedented challenges of Covid19.

John Attenborough received the award for his outstanding work in making a difference to the lives of seafarers all over the world during the past twenty six years. John has consistently demonstrated his compassion and support for seafarers and this was clearly seen in his response to seafarers’ welfare throughout the Covid-19 pandemic. During this time, John was a source of practical and emotional support for many seafarers who were unable to return home because of the delays in crew changes.

FUTURE STRATEGY

Whilst much information about ongoing efforts is contained within the main body of the report, the Board reviews its future strategy annually whilst also reviewing the progress and achievements from the previous year. The list of key objectives set down in the 2019/20 review is as follows:

Completed objectives (in addition to pandemic responses)

• Rebuilt the Seafarer Support website acting as the online Maritime Charities Welfare Guide

• Implemented more agile and responsive grant system

• Improved partnership arrangement with Seafarers UK to raise money for the Merchant Navy Fund

• Reported on the collaborative ship welfare visitor MiFi pilot project

• Initiated new MiFi project with Department for Transport and Seafarers UK

• Conducted a visit to assist the Falkland Islands’ Port Welfare Board

• Conducted a MNWB strategic review (first phase)

• Made all meetings as paperless as possible

• Completed first phase of ISWAN/MNWB Port Visitor IT Platform

Ongoing objectives

• Promote awareness of the maritime charity sector

• Support the Constituent members as appropriate

• Support and maintain the 15 UK Port Welfare Committees, Gibraltar Seafarers’ Welfare Board and support of the Falkland Islands’ Port Welfare Board

• Review the need for additional Port Welfare Committees in the UK and overseas Dependencies

• Monitor the impact of ILO’s Maritime Labour Convention (2006)

• Provide training packages

• Manage and maintain the Vehicle Replacement Programme Fund

• Publish, revise, reprint and distribute Port Information leaflets

• Act as a clearing house for applications for help and arrange caseworker home visits to clients

• Support and encourage home visits by trained caseworkers

• Publish a ‘ready reference’ survey of all charities making grants to individuals

• Provide evaluation and feasibility studies where appropriate

• Manage a collaborative project to endeavour to secure improved funding from port levies

• Review with appropriate Constituents the changes in seafarers’ communications and IT provision

• Encourage the establishment of more port levy or contribution schemes

• Review access to welfare provision and charitable assistance to professional luxury yacht crews

• Maintain and enhance the role of the Working Groups to review existing provision and future needs

• • Alternate biennial conferences for Constituent and PWC members

• Continue partnership arrangement with Seafarers UK to raise money for the Merchant Navy Fund

• Administer the Merchant Navy Honours Consultative Committee, website and restricted fund

• • Manage an international partnership project in partnership with ISWAN

Future major objectives (subject to pandemic restrictions)

• Seek UK Government & Tripartite Committee recognition as National Seafarers’ Welfare Board

• • Establish NSWB MoU and reporting system with MCA

• Monitor and assess Constituent organisation engagement to strengthen links and, subject to pandemic, organise visit programme

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

• Re-establish Serving Seafarers & Older Seafarers & Families Working Groups

• Contact & populate Port Visitor platform with existing data on seafarers’ centres and welfare boards worldwide

• Help review the role and objectives of MCG from a MN/FF perspective

• Evidence and promote the benefits of port levies to support sustainable port welfare services via social media, PWCs, Working Groups and conferences

• Increase online presence and impact using social media and video channels

• Produce a regular Seafarer Support newsletter promoting the work of Constituent members and seafarers’ welfare in ports

• Assess use of Onboard digital trustee software and evaluate the effectiveness of the new grants system

• Evaluate the effectiveness of the VRP programme and plan for new vehicles for 2022

• Produce an online Welfare Guidance Training module, promoting Constituent organisations via Seafarer Support

• Investigate and implement third party online courses in collaboration with Constituent organisations

• Create a new and updated Ship Welfare Visitors Course

• Create a new online ISPS Course

• Create C188 Awareness Course & Guide

• Provide staff with GDPR & Cybersecurity training via KnowB4 to ensure adequate level of knowledge

• • Manage and review the MiFi project in 2021

• Complete end of project MiFi report to assess usage and expected future welfare need

• Update ‘Remembering those left behind’ publication

• Create and implement a measurable welfare case client feedback procedure

• Investigate the enhancement and, where appropriate, the expansion of the hospital welfare support partnership service with Defence Medical Welfare Service in tandem with its social media awareness and outreach campaign.

• Working with MCA, investigate the establishment and support of new welfare boards in the Red Ensign group in conjunction with the IPWP programme

• Recruit, induct and support a small team of Volunteer Ambassadors

• Form working group to create a draft voluntary, best ‘Code of Practice’ for seafarers’ welfare in port

• Create a seafarers’ welfare training film for cadets in College and at sea in conjunction with MCA & MNTB

• Improve connection with MNA branches to increase outreach and invite appropriate membership on all UK PWCs

• Where appropriate, assist the MNHCC/DfT with updates to the MNMSM Royal Warrant Conduct

• An annual liaison visit to the MN Arboretum and promote the facility on a biannual basis

TRUSTEES' RESPONSIBILITIES STATEMENT

The Trustees (who are also directors of Merchant Navy Welfare Board for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and accounting estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DISCLOSURE OF INFORMATION TO AUDITORS

The Trustees at the time when this Report of the Trustees is approved have confirmed that:

• so far as the Trustees are aware, there is no relevant audit information of which the charitable company's auditors are unaware, and

• the Trustees have taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.

AUDITORS

As noted previously, the Board has dispensed with the requirement to hold an Annual General Meeting. In 2018, the Board appointed James Cowper Kreston as their auditors. The re appointment of auditors will be decided annually at a council meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

................................................ A K Cassels Chairman Date: 18.05.2021

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MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERCHANT NAVY WELFARE BOARD

Opinion

We have audited the financial statements of Merchant Navy Welfare Board (the 'charity') for the year ended 31 December 2020 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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 charitable company's affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure 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 Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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MERCHANT NAVY WELFARE BOARD

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERCHANT NAVY WELFARE BOARD (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. 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.

Opinion on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

• certain disclosures of Trustees' remuneration specified by law are not made; or

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

• the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.

Page 23

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERCHANT NAVY WELFARE BOARD (CONTINUED)

Responsibilities of trustees

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

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

Auditors' 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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

• Enquiry of management and those charged with governance around actual and potential litigation and claims;

• Enquiry of management and those charged with governance to identify any material instances of noncompliance with laws and regulations;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.

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 Auditors' report.

Page 24

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERCHANT NAVY WELFARE BOARD (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Louise Hallsworth FCA (Senior statutory auditor)

for and on behalf of

James Cowper Kreston

Chartered Accountants and Statutory Auditor 9th Floor

The White Building 1-4 Cumberland Place Southampton Hampshire SO15 2NP

Date: 20 May 2021

Page 25

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020

Note Income from: Donations, legacies and grants 2 Investments 3 Other income 4 Total income Expenditure on: Raising funds 5 Charitable activities: Support services to Constituent Members 6 Grants to support the work of Constituent Members 6 Grants unspent 6 Support to promote welfare activities 7 Total expenditure Net gains / (losses) on investments Transfers between funds 16 Net movement in funds Reconciliation of funds: Total funds brought forward as previously stated Prior year adjustment Total funds brought forward as restated Net movement in funds Total funds carried forward	Unrestricted funds 2020 £ 8,913 243,273 41,530 293,716 45,619 62,218 182,566 (111,958) 546,064 724,509 (188,983) (8,300) (628,076) 14,740,569 45,820 14,786,389 (628,076) 14,158,313	Restricted funds 2020 £ 306,008 - - 306,008 - 308,290 - - - 308,290 - 8,300 6,018 352,319 - 352,319 6,018 358,337	Total funds 2020 £ 314,921 243,273 41,530 599,724 45,619 370,508 182,566 (111,958) 546,064 1,032,799 (188,983) - (622,058) 15,092,888 45,820 15,138,708 (622,058) 14,516,650	As restated Total funds 2019 £ 485,730 356,689 17,799 860,218 49,327 515,422 233,999 (5,493) 522,345 1,315,600 1,689,203 - 1,233,821 13,904,887 - 13,904,887 1,233,821 15,138,708

The notes on pages 29 to 43 form part of these financial statements.

Page 26

MERCHANT NAVY WELFARE BOARD (A company limited by guarantee) REGISTERED NUMBER: 00453053

BALANCE SHEET AS AT 31 DECEMBER 2020

Note Fixed assets Tangible assets 11 Investments 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Total net assets Charity funds Restricted funds 16 Unrestricted funds 16 Total funds	60,773 709,880 770,653 (212,551)	2020 £ 2,069 13,956,479 13,958,548 558,102 14,516,650 14,516,650 358,337 14,158,313 14,516,650	70,034 445,205 515,239 (341,198)	As restated 2019 £ 5,298 14,959,369
				14,964,667 174,041
				15,138,708
				15,138,708
				352,319 14,786,389
				15,138,708

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on _______18 May 2021 and signed on their behalf by: ................................................ ................................................ Captain A K Cassels Mr G Lane Chairman of the Council Member of the Council ................................................

P D Tomlin MBE

Chief Executive

The notes on pages 29 to 43 form part of these financial statements.

Page 27

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Cash flows from operating activities Net cash used in operating activities (note 16) Cash flows from investing activities Dividends and interest from investments Realised (losses) / gains on the sale of investments Proceeds from the sale of investments Purchase of investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	2020 £ (792,505) 243,273 (717,618) 7,553,730 (6,022,205) 1,057,180 264,675 445,205 709,880	As restated 2019 £ (752,233) 356,689 352,952 4,944,355 (4,999,698) 654,298 (97,935) 543,140 445,205

The notes on pages 29 to 43 form part of these financial statements

Page 28

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Merchant Navy Welfare Board meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost with the exception of investments which are included at fair value.

1.2 Company status

The charity is a company limited by guarantee. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

1.3 Fund accounting

Unrestricted funds are available for use at the discretion of the Trustee in furtherance of the general objectives of the charity and have not been designated for other purposes. Unrestricted funds represent funds retained to provide the working capital to enable the Trustees to carry out activities as a provider of services to Seafarers.

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.

1.4 Going concern

The Trustees have considered the financial position of the Charity and believe it is currently a going concern. The COVID-19 outbreak has so far not had a material impact on this assessment and, based on their current knowledge, they do not expect it to do so going forward. Consequently, the financial statements have been prepared on a going concern basis. In forming this view the Trustees have explicitly considered the potential impact of the COVID-19 virus. The Trustees have considered their grants payable commitments in the subsequent financial period and have sufficient funds available to meet these obligations. The current total return policy of 6% will be regularly reviewed and amended as necessary. As such this will enable the Charity to continue to provide grants to their constituent members for the foreseeable future.

Page 29

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

1. Accounting policies (continued)

1.5 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.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate.

Receipt of a legacy is be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

1.6 Expenditure

Expenditure which does not directly relate to grant making is analysed between charitable support costs, governance costs and costs of generating funds. Items which involve more than one cost category are apportioned as appropriate to the cost categories involved.

Support costs are those costs incurred 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.

1.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. using the straight-line method

Depreciation is provided on the following bases:

Fixtures and fittings	- 10% on cost
Computer equipment	- 33% on cost

Page 30

MERCHANT NAVY WELFARE BOARD (A company limited by guarantee)

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

1. Accounting policies (continued)

1.8 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 the 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 presented as ‘Net gains/(losses) on investments’ in the Statement of financial activities.

1.9 Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities incorporating income and expenditure account on a straight line basis over the lease term.

1.10 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.

1.11 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.

1.12 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

MNWB has a Group Pension Plan & Group Stakeholder Pension Plan with Royal London.

2. Income from donations, legacies and grants

Donations Legacies Grants Total 2019	Unrestricted funds 2020 £ 1,913 7,000 - 8,913 139,979	Restricted funds 2020 £ - - 306,008 306,008 345,751	Total funds 2020 £ 1,913 7,000 306,008 314,921 485,730	Total funds 2019 £ 2,282 137,697 345,751
				485,730

Page 31

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

3. Investment income

Unrestricted funds 2020 £ Quoted UK and Non-UK investments 243,207 UK Portfolio cash interest 66 243,273 Total 2019 as restated 356,689	Total funds 2020 £ 243,207 66 243,273 356,689	As restated Total funds 2019 £ 354,823 1,866
		356,689

4. Other income

Rental of Car Park Spaces Courses Sundry income Total 2019 Raising Funds Portfolio management fees Total 2019	Unrestricted funds 2020 £ 3,312 1,707 36,511 41,530 17,799 Unrestricted funds 2020 £ 45,619 49,327	Total funds 2020 £ 3,312 1,707 36,511 41,530 17,799 Total funds 2020 £ 45,619 49,327	Total funds 2019 £ 3,312 3,198 11,289 17,799 Total funds 2019 £ 49,327

5. Raising Funds

Page 32

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

6. Support services to constituent members

Vehicle Replacement Fund MN Medal Fund IPWP Programme Seafarers Support Seafarers Centre Support Project MiFi Project Caseworker costs Training courses Evaluation studies Port welfare promotion Merchant Navy Fund promotion contribution Seafarer Support Annual Seafarers Welfare Conference COVID-19 Ambassadors Grants to support the work of Constituent Members Grants unspent Total 2019	Unrestricted expenditure 2020 £ - - - - - - 17,538 5,444 1,000 1,815 5,823 8,669 - 18,480 3,449 62,218 182,566 (111,958) 132,826 321,502	Restricted expenditure 2020 £ 104,346 2,658 150,921 25,720 - 24,645 - - - - - - - - - 308,290 - - 308,290 422,427	Total 2020 £ 104,346 2,658 150,921 25,720 - 24,645 17,538 5,444 1,000 1,815 5,823 8,669 - 18,480 3,449 370,508 182,566 (111,958) 441,116 743,929	Total 2019 £ 194,319 3,486 161,896 40,067 4,090 18,569 17,823 27,717 - 3,232 13,445 - 30,779 - - 515,423 233,999 (5,493) 743,929

Page 33

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

7. Support to promote welfare activities

Management 2020 £ Office running costs 16,202 Staff recruitment - Staff life assurance and training 13,855 Subscriptions and publications 3,278 Other costs 78,853 Head office costs - Trustees' expenses - Trustees' meeting costs - Legal and Professional Fees - Accountancy - Auditors' remuneration - Wages and salaries 310,646 National insurance 26,131 Pension cost 38,966 Depreciation 3,229 491,160 Seafarers Support - Salary recharge - IPWP Support - Salary recharge (12,902) Mi-Fi Support - Salary recharge (1,650) MN Medal Fund Support - Salary recharge (1,800) 474,808 Total 2019 382,629	Governance 2020 £ - - - - - 15,097 675 675 4,581 20,400 7,200 22,628 - - - 71,256 - - - - 71,256 83,195	Total 2020 £ 16,202 - 13,855 3,278 78,853 15,097 675 675 4,581 20,400 7,200 333,274 26,131 38,966 3,229 562,416 - (12,902) (1,650) (1,800) 546,064 465,824	Total 2019 £ 27,773 1,890 17,659 4,179 83,086 13,570 2,211 2,320 7,971 20,208 6,000 310,638 31,613 41,100 10,010
			580,228 (9,000) (48,884) - -
			522,344

8. Governance Costs

Support Costs Wages and salaries	Unrestricted funds 2020 £ 48,628 22,628 71,256	Total funds 2020 £ 48,628 22,628 71,256	Total funds 2019 £ 52,280 21,612
			73,892

Page 34

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

9. Operating expenditure

	2020	2019
	£	£
Depreciation of tangible fixed assets: owned by the charity	3,229	10,010
Auditors' remuneration - audit	6,000	6,000
Auditors' remuneration - other services	1,200	1,200

During the year, no Trustees received any remuneration (2019 - £NIL)

During the year, no Trustees received any benefits in kind (2019 - £NIL).

During the year, Trustees' expenses were paid to four (2019 - four) Trustees amounting to £675 (2019: £2,211).

10. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes	2020 £ 333,274 26,131 38,966 398,371	2019 £ 310,638 31,613 41,100
		383,351

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

2020	2019
No.	No.
9	9

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

		2020	2019
		No.	No.
In the band £60,001	- £70,000	-	1
In the band £70,001	- £80,000	1	-

The key management personnel of the charity recieved aggregate remuneration of £136,459 (2019: £139,479).

Page 35

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

11. Tangible fixed assets

Cost or valuation At 1 January 2020 At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 Fixed asset investments Cost or valuation At 1 January 2020 Additions Disposals Revaluations At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019	Fixtures and fittings £ 14,952 14,952 11,135 1,847 12,982 1,970 3,817 Listed securities £ 14,626,290 6,022,205 (7,281,281) 528,635 13,895,849 13,895,849 14,626,290	Computer equipment £ 41,405 41,405 39,924 1,382 41,306 99 1,481 UK Portfolio cash investments £ 333,079 - (272,449) - 60,630 60,630 333,079	Total £ 56,357 56,357 51,059 3,229 54,288 2,069 5,298 Total £ 14,959,369 6,022,205 (7,553,730) 528,635 13,956,479 13,956,479 14,959,369

12. Fixed asset investments

Page 36

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

Investments at market value comprise:

Listed securities Cash and settlements pending Total Market value Historical cost of listed securities held Historical cost	2020 £ 13,895,849 60,630 13,956,479 2020 £ 12,186,990	2019 £ 14,626,290 333,079
		14,959,369
		2019 £ 12,573,504

13. Debtors Other debtors Prepayments and accrued income 14. Creditors: Amounts falling due within one year Trade creditors Grants payable Other taxation and social security Other creditors Accruals and deferred income	2020 £ 26,978 33,795 60,773 2020 £ 16,656 132,506 7,950 420 55,019 212,551	As restated 2019 £ 45,820 24,214
		70,034
		2019 £ 32,744 250,607 7,600 9,475 40,772
		341,198

15. Prior year adjustments

An adjustment has been made in 2019 to account for dividends declared during the year but received post 31 December 2019. This has resulted in an increase of £45,820 to the reserves.

Page 37

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

16. Statement of funds

Statement of funds - current year

As restated Balance at 1 January 2020 £ Unrestricted funds Unrestricted funds 14,786,389 Restricted funds Vehicle Replacement Programme 195,581 MN Medal Fund 6,742 IPWP Programme 107,845 Seafarers Support 25,720 MiFi Project 16,431 Total Restricted funds 352,319 Total of funds 15,138,708	Income £ Expenditure £ 293,716 (724,509) 141,000 (104,346) 1,425 (2,658) 143,583 (150,921) - (25,720) 20,000 (24,645) 306,008 (308,290) 599,724 (1,032,799)	Transfers in/out £ (8,300) - (1,700) - - 10,000 8,300 -	Gains/ (Losses) £ (188,983) - - - - - - (188,983)	Balance at 31 December 2020 £ 14,158,313 232,235 3,809 100,507 - 21,786
				358,337
				14,516,650

Page 38

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

16. Statement of funds (continued)

Vehicle Replacement Programme (VRP)

A partnership programme to provide grants to replace vehicles that provide welfare services covering UK ports, Gibraltar and the Falkland Islands. The VRP is funded equally between Seafarers’ UK, ITF Seafarers' Trust, Trinity House and MNWB.

MN Medal Fund

The MN Medal Fund receives donations from the UK maritime sector to support the promotion and award of the Merchant Navy Medal for Meritorious Service, associated website and the annual meetings of the Merchant Navy Honours Consultative Committee that advises the Govt. Department for Transport.

IPWP Programme

Under the auspices of ILO Maritime Labour Convention 2006, the International Port Welfare Partnership Programme (IPWP) is funded equally by the ITF Seafarers’ Trust, TK Foundation, Seafarers’ UK and MNWB to promote and assist the establishment of welfare boards to enhance seafarers’ welfare in ports, worldwide.

Seafarers Support

Jointly funded by Seafarers’ UK, Trinity House, the Royal Navy & Royal Marines Charity and MNWB, Seafarer Support provides a central point of contact for seafarers’, fishermen and their dependants seeking help from the UK maritime charity sector, providing website, helpline, search engine software and practical welfare support.

Seafarers’ Centre Support Pilot Project

In partnership with the main societies, the pilot project aimed to review, promote best practice and make recommendations in support of UK seafarers centres. The project was unable to recruit a suitable manager to lead on the project and, therefore, did not proceed or request match funding from the partner societies. MNWB did however conduct operation reviews of the jointly operated centres in major ports for centre trustee consideration.

MiFi Project

A project funded by the ITF Seafarers’ Trust and managed by MNWB to supply Ship Welfare Visitors with mobile internet hubs (MiFi Units) to improve communications and seafarers’ welfare in UK port.

Page 39

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds Unrestricted funds Restricted funds Vehicle Replacement Programme MN Medal Fund IPWP Programme Seafarers Support Seafarers' Centre Support Pilot Project MiFi Project Total Restricted funds Total of funds	Balance at 1 January 2019 £ 13,562,447 201,900 8,477 71,741 45,787 14,535 - 342,440 13,904,887	As restated Income £ 514,467 141,000 1,751 148,000 20,000 - 35,000 345,751 860,218	Expenditure £ (893,173) (194,319) (3,486) (161,896) (40,067) (4,090) (18,569) (422,427) (1,315,600)	Transfers in/(out) £ (86,555) 47,000 - 50,000 - (10,445) - 86,555 -	Gains/ (Losses) £ 1,689,203 - - - - - - - 1,689,203	As restated Balance at 31 December 2019 £ 14,786,389
						195,581 6,742 107,845 25,720 - 16,431
						352,319
						15,138,708

Page 40

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

17. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted funds 2020 £ Tangible fixed assets 2,069 Fixed asset investments 13,956,479 Current assets 412,316 Creditors due within one year (212,551) Total 14,158,313	Restricted funds 2020 £ - - 358,337 - 358,337	Total funds 2020 £ 2,069 13,956,479 770,653 (212,551) 14,516,650

Analysis of net assets between funds - prior period

Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Total As restated	As restated Unrestricted funds 2019 £ 5,298 14,959,369 142,920 (321,198) 14,786,389	Restricted funds 2019 £ - - 372,319 (20,000) 352,319	As restated Total funds 2019 £ 5,298 14,959,369 515,239 (341,198) 15,138,708

18. Pension commitments

The charity provides a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund.

MNWB has a Group Personal Pension Plan & Group Stakeholder Pension Plan with Royal London. Contributions made to the scheme amounted to £38,966 (2019 - £41,100). At the Balance Sheet date contributions of £Nil (2019 - £9,475) were outstanding.

Page 41

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

19. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges Gain/loss on investment Dividends and interest from investments Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash used in operating activities	2020 £ (622,058) 3,229 188,893 (243,273) 9,261 (128,647) (792,595)	As restated 2019 £ 1,233,821
		10,010 (1,689,203) (356,689) (50,509) 100,337
		(752,233)

20.

Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents Cash at bank and in hand	At 1 January 2020 £ 445,205 445,205		2020 £ 709,880 709,880 Cash flows £ 264,675 264,675		2019 £ 445,205
					445,205
					At 31 December 2020 £ 709,880 709,880

Page 42

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

21. Operating lease commitments

At 31 December 2020 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Land and buildings Not later than 1 year Between 1 and 5 years After more than 5 years Total Other Within 1 year Between 1 and 5 years Total	2020 £ 28,000 112,000 105,000 245,000 3,665 9,765 13,430 258,430	2019 £ 27,000 - -
		27,000 3,665 13,430
		17,095
		44,095

22. Related party transactions

There are a number of Constituent Members where there are common trustees with the Board and transactions take place during the year on an arm’s length basis. Details of these transactions are disclosed in the Report of the Trustees.

23. Post balance sheet events

Post year end the Charity recieved their investment report which detailed dividends proposed in 2020 but not paid at the year end. This balance totalled £26,978 (2019: £45,820 - as shown in note 15) has been included within accrued income at year end.

Since the reporting date the market value of the Charity's listed securities and cash investment has increased to £14,650,315.

24. Controlling party

The charity is limited by guarantee and is controlled by its members.

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