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2023-12-31-accounts

REGISTERED NUMBER: 00453053 CHARITY NUMBERS: 212799 AND SC039669

ANNUAL REPORT 2023 TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

CONTENTS

Page
Chairman's Foreword 1
Chief Executive’s Introduction 2
Report of the Trustees 3 – 16
Report of the Independent Auditors 17 - 20
Statement of Financial Activities 21
Balance sheet 22
Cash Flow Statement 23
Notes to the Financial Statements 24 – 40

CHAIRMAN'S INTRODUCTION

On behalf of my fellow trustees, I am delighted to present the MNWB 2023 Annual Report, a year in which we had many achievements, and which culminated in a celebration of our 75th anniversary at Westminster.

As Chairman of the MNWB Board of Trustees, this Annual Report is my opportunity to thank all those who have, in their many, many ways, supported us in 2023. Specifically, I would like to recognise our nine staff, five Ambassadors, our 45 constituent member organisations, the 367 volunteer members on our Port Welfare Committees and the many other associated organisations for their hard work and support during what has proved to be a busy and very successful year. Our success is directly attributable to their support and hard work.

The MNWB is the UK maritime sector’s umbrella charity which compliments the funding charities who primarily provide grants and the many beneficiary-facing charities who take those grants to fund their operations. Our role is to support the sector through the provision of projects and programs preventing duplication of effort. We also represent and communicate between the charities at the ‘coalface’, so to speak, and the governing authorities, in our case the Department for Transport and Maritime & Coastguard Agency.

In late 2022, the staff and Board of Trustees developed a 3-year strategic plan. Our vision remains “To be the UK’s representative voice and driving force for the welfare of merchant navy and fishing communities” with a mission “To improve the lives of seafarers and fishers by raising welfare standards in collaboration with our stakeholders”. This strategic plan has guided and informed our activities in 2023 and I am pleased to report that we have made strong progress towards its goals which you will read about in this report.

To this end, we have developed the National Seafarers Welfare Board into a structure administered by the Board but with the maritime charities firmly in the driving seat. With just the last couple of pieces to put in place, the NSWB will provide a coordinated voice of the sector, by the sector, direct through to government.

In our capacity as the NSWB, the government invited us to lead a joint national project to investigate the sustainability of funding to ensure maritime welfare provision across the UK. The UK Port Welfare Provision report is a ground-breaking document for both the sector and the government. It details the state and cost of the provision of port-based welfare in the UK and informs government on their conformance with the recommendations in the MLC 2006. If you haven’t seen it, it is available on the MNWB website.

2023 was a significant year for the Board. It has been 75 years since the Merchant Navy Welfare Board was formed by the UK Government to oversee the provision of welfare for merchant seafarers and fishers. Since then, the Board has been active in support of its 45 constituent members, 15 Port Welfare Committees and indirectly to many thousands of seafarers, fishers and their families who need welfare support. At the 75th anniversary celebrations we announced and welcomed Robert Courts KC MP as our Vice President. Robert has previously served as the Parliamentary Under-Secretary of State for the Department for Transport.

As Chairman, I am but a conductor of an orchestra of talent. The Board’s trustees are drawn from all walks of life within the maritime charity sector with representation from ship owners, unions, our constituent charities, ports, and accountancy expertise. A better-informed Council I couldn’t wish for. Our strategic directions is formulated and communicated by these 14 trustees, but without the input from the Port Welfare Committees and the execution by the Board’s staff nothing would change.

Capt. Andrew Cassels - Chair

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Dated:

CHIEF EXECUTIVE OFFICER’S INTRODUCTION

In 2023, we marked a significant milestone as we commemorated our 75th anniversary at the Palace of Westminster. We were joined by parliamentarians, constituent members, trustees, staff, and representatives from across the maritime sector, including ambassadors and Port Welfare Committee chairs. During this momentous occasion, we unveiled our UK Port Welfare Provision Report, outlining the extent and cost of welfare provision in the UK and calling for a more sustainable model of funding.

The Report was based on new data received from charities working on the front line detailing the welfare provision in each port. And there were some surprises! Charities planned to spend £4.8 million on port welfare in 2023 in support of 44 seafarers’ centres, a fleet of 77 vehicles to transport seafarers, 39 mobile broadband units, 133 paid welfare staff, 239 volunteers and hundreds of thousands of seafarers.

Together with our constituent members, we are supporting the entire maritime sector by ensuring that those working at sea receive the best possible welfare support that we can provide. Through the collaborative effort of our 45 constituent organisations, shipowners, ports, unions, and the UK Government, we have propelled the sector forward, ensuring seafarers' welfare remains at the front and centre of our objectives. Notable highlights of our endeavours in 2023 include:

As you can see, the MNWB team has worked hard to deliver on so many projects this year and I am grateful for their hard work and commitment. I also thank our Chair, Capt. Andrew Cassels, and the whole trustee board for their support; they are a diverse group of experts from the sector who add real value to our work.

Our 45 Constituent members have continued to support the Board’s mission and deliver vital support to their beneficiaries. Through the work they do, and the combined effort of our welfare community, we are making a real difference and will continue to so. As we look ahead, I hope that 2024 will bring even more opportunities to our door so that our mission of improving the lives of seafarers and fishers by raising welfare standards can make further progress.

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Stuart Rivers – Chief Executive Officer Dated:

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Trustees present their 77th Annual Report and the audited Financial Statements for the year ended 31 December 2023. 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 2019').

VISION STATEMENT

To be the representative voice and driving force for the welfare of merchant navy and fishing communities in the UK.

MISSION STATEMENT

Improving the lives of seafarers and fishers by raising welfare standards in collaboration with our stakeholders.

OBJECTIVES

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

STATEMENT OF PUBLIC BENEFIT

The objectives, activities, achievements, and performance of the Board, which the charity undertakes for 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:

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NATURE OF THE GOVERNING DOCUMENT

The Board is governed by Articles of Association adopted by a Special Resolution on 20 May 2010 and last amended on 9 March 2023. These comply with the provisions of the Companies Act 2006 and the Charities Act 2011.

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 HM 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 is8 Cumberland Place, Southampton SO15 2BH Telephone: 023 8033 7799 E-mail: enquiries@mnwb.org.uk Website: www.mnwb.org

WELFARE ORGANISATIONS SUBSCRIBING TO THE CONSTITUTION OF THE BOARD

Aberdeen Seafarers' Centre Safer Waves Aged Merchant Seamen's Homes Sailors' Children's Society Alabaré Sailors' Orphan Society of Scotland Broughton House Sailors' Society Care Ashore Scottish Nautical Welfare Society Defence Medical Welfare Service Scottish Veterans' Residences Erskine Hospital Seafarers' Advice & Information Line Grimsby Sailors & Fishing Charity Seamen's Christian Friend Society Guild of Benevolence of the IMarEST Seafarers Hospital Society Honourable Company of Master Mariners Seafarer's Welfare Fund (Gibraltar) Charities Shipwrecked Mariners' Society Lighthouse Seafarers Mission, Falklands SSAFA Liverpool Seafarers' Centre Stella Maris, Great Britain Lowestoft Fishermen's and Seafarers' Benevolent The Fishermen’s Mission Society The Mission to Seafarers Marine Society & Sea Cadets The Seafarers' Charity Merchant Navy Association Trinity House Nautilus Welfare Fund Trinity House, Hull Naval & Military Bible Society Tyne Mariners' Benevolent Institution Queen Victoria Seamen's Rest Veterans' Aid QVSR Seafarers' Centres Whitby Merchant Seamen's Hospital House RoyaI Alfred Seafarers' Society Willie Seager Memorial Trust Royal Liverpool Seamen's Orphan Institution Wilson's Mariners' Homes Royal Merchant Navy Education Foundation

N.B. These are not connected charities within the meaning of the SORP 2019.

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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 based on the skills and experience required to carry out their responsibilities effectively in the best Interest of the charity.

The Board wishes to place on record its appreciation for the contribution made by all members of the Council. Trustees wish to thank Brian Boxhall-Hunt, who retired as a trustee during the year, and Julie Carlton, who retired as the MCA Observer.

Council membership during 2023 was as follows:

Patron: The Lord Prescott Vice President: Robert Courts MP Chair: Capt. Andrew Cassels Vice Chair: Mark Dickinson

SHIP OWNERS' & SHIP MANAGERS' REPRESENTATIVES:

Capt. A Cassels (Chair), UK Chamber of Shipping (Re-appointed 30.06.21) A Hodgson, UK Chamber of Shipping (Appointed 30.06.23) TE Springett, UK Chamber of Shipping (Re-appointed 30.06.22) Capt. Louise Sara (Appointed 22.09.22)

TRADE UNION REPRESENTATIVES:

D Appleton, Nautilus International (Re-appointed 30.06.20) M Carden, RMT (Re-appointed 30.06.21) AM Dickinson, Nautilus International (Vice-Chair) (Re-appointed 30.06.22) D Procter, RMT (Re-appointed 30.06.23)

VOLUNTARY SECTOR REPRESENTATIVES:

Capt. J Osmond RN, Shipwrecked Mariners' Society (Re-appointed 30.06.21) Cdr B Boxall-Hunt OBE, Royal Alfred Seafarers' Society (Retired 20.12.23) N Barley, Sailors' Children's Society (Appointed 20.07.23) A Campbell OBE (Appointed 02.11.23)

PERSONS ABLE TO MAKE A PARTICULAR CONTRIBUTION OF VALUE TO THE CHARITY BECAUSE OF

THEIR SPECIALIST EXPERTISE:

A Godfrey, The Fishermen's Mission (Re-Appointed 30.06.22) G Lane, Chartered Accountant (Re-appointed 30.06.22) R Ballantyne OBE, British Ports Association (Appointed 30.06 .21)

OBSERVER STATUS:

J Carlton, Maritime & Coastguard Agency (Retired 30.11.23)

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. The

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Council appoints those persons able to make a particular contribution, currently three. Each appointment, or election, for all backgrounds, is for three years and a maximum of three terms of office.

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

Stuart Rivers, Chief Executive Officer

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, 5053 3LG Investment Manager: Bordier & Cie (UK) PLC, 23 King Street, St James's, London, SW1Y GQY Pension Advisers: Fairstone Wealth Management Ltd, Red Rose Court, Clayton Business Park, Clayton-leMoors, BB5 5JR

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

STAFF

Stuart Rivers, Chief Executive Officer Sharon Coveney, Deputy Chief Executive Sarah Edward, Port Welfare Committee Manager Susan Atkinson, Port Welfare Committee Manager Joel Holt, Media and Communications Manager Celia Jackson, Grants & Impact Manager Aiden Harvey, Projects & Welfare Coordinator Helen van Gass, Welfare & Training Manager Nicky Cantello, Executive Assistant & Office Manager

The Council Is responsible for:

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.

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In accordance with SORP 2019, the Board:

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

The sub-committee:

VOLUNTEER AMBASSADORS

Working alongside our dedicated staff team, the Board’s volunteer Ambassadors have helped to raise awareness and understanding of the work of the MNWB as the National Seafarers Welfare Board (NSWB) throughout 2023.

In June the Board held its in-person MNWB Volunteer Ambassadors Programme meeting at the Union Jack Club. The Board’s Deputy CE and Volunteer Consultant Susan Newcombe were joined by MNWB’s four Ambassadors, Neil Atkinson, Alèxe Finlay, Martin Phipps, and Jerry Drewitt, who have visited several of the Board’s Constituent organisations to promote the Board’s work while listening to the views of our constituents. The programme, which was launched in February 2022 has been extremely positive, so much so that this year, maritime professionals Gordon Foot, Stephen Gudgeon and Paul Hayes were appointed as new Volunteer Ambassadors.

Towards the end of 2023, Capt. Jerry Drewitt and Alèxe Finlay stood down from their role as Ambassadors as they plan for their retirement. Special thanks and gratitude are extended to them for their invaluable contribution to the programme and the work of the Board.

During 2024 the Ambassadors will continue to visit and strengthen existing relationships with Constituents whilst extending the service to external organisations including, the Chamber of Commerce, MCA, Nautical Institute, Nautical Colleges, and P&I Clubs.

ORGANISATIONAL STRUCTURE AND DECISION MAKING

The Board's Council holds three meetings annually. These are used to review current strategy, financial matters, investments, services to Constituent Members, grant distribution and agree future policy. In addition, it holds joint biennial meetings for Constituent and Port Welfare Committee members. In the event that amendments to the Articles of Association are required, Council must agree the amendments by special resolution.

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. The Council has delegate responsibility for the operation of the charity to the Chief Executive Officer who, along with the staff team, ensure the charity delivers its charitable objects and remains a going concern.

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RISK MANAGEMENT

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

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 Officer and presented to the Council. 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. Details - of the policy can be found at www.mnwb.org/complaints policy.

PRIVACY POLICY

The Board is committed to protecting and respecting the privacy of those whose data it handles and has in - place a privacy policy that can be found at www.mnwb.org/privacy policy.

ENVIRONMENT & CLIMATE CHANGE AWARENESS

The Board is aware of the need to act in an environmentally responsible manner and meet the challenges of climate change. Our normal practice is to have face-to-face meetings, which we modified to video conference calls due to the pandemic. These meetings gained good attendance, especially from those who would normally have to travel a distance. We feel that in-person meetings are essential, but the benefit of virtual meetings in reducing our carbon footprint and increasing meeting attendance has been evidenced over the last three years. For our working groups, therefore, we will move from two in-person meetings per group to one in-person and two remote meetings in 2024.

Our flagship Vehicle Replacement Programme supports 67 vehicles out of the total fleet of 77 vehicles that are used to deliver services and provide transport for seafarers and fishers. Each year, up to 12 vehicles are replaced through the programme. Conscious of the need to reduce carbon emissions, we encourage the use of electric or hybrid vehicles where practicable. As vehicles become due for replacement, we will ensure that consideration is given to the environmental options before releasing funding for new vehicles.

EQUITY, EQUALITY, DIVERSITY AND INCLUSION

Members of the Equity, Equality, Diversity & Inclusion working group have continued to work hard during 2023 to increase understanding, enthusiasm and action on EEDI issues. The group’s aim is to bring everyone on board in a spirit of true collaboration, engaging the Maritime Welfare Charities (MWC) in a landmark movement for positive change within the sector. Jointly funded by MNWB, Trinity House, and The Seafarers’ Charity (project managed by the MNWB), the EEDI Pilot Project will hold a series of UK wide presentations to MWCs and the wider maritime sector on EEDI. The aim is to educate and raise awareness of EEDI within trustee boards and staff teams working in the sector.

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.

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FINANCIAL REVIEW

A great deal was thrown at the world economy and financial markets during 2023 and for much of the year it was a challenge to make much headway. Yet the steady taming of inflation and the real prospect of lower interest rates sometime in 2024 reignited investor confidence towards the latter stages of the year. This helped the investment portfolio post a gain of 7.3% after adjusting for cash drawn from the portfolio amounting to £908,600.

Our investment managers remained active during the year: in anticipation of improved conditions for bond markets from lower interest rates, they reduced some defensive elements that had been useful in limiting the portfolio’s decline during 2022; they also reallocated capital within global stock markets, recognising near-term value and recovery potential in areas such as Europe and Japan whilst maintaining core commitments to longer-term growth potential elsewhere in Asia and in the USA. Alternative investments were reduced, but continue to play an important, protective role during times of market stress. Our investment managers are optimistic about the prospects for a range of asset classes in 2024, which they feel will be supported by an environment of reduced inflationary headwinds and a lower interest rate backdrop.

The net gain on investments during 2023 was £704,263 (2022: loss £1,128,842). At the year-end, investments were valued at £13,676,882 (2022: 13,647,613) and total funds amounted to £13,839,153 (2022: £14,798,854).

RESERVES POLICY

Of the total funds held, £1,000,000 is designated as reserves that would enable the Board to operate for a minimum of one year or should it need to wind up its operations.

The Council annually reviews the level of the Board's unrestricted funds to meet the ongoing ability to finance administrative costs, services to Constituent members and grants. To determine and monitor the appropriate level of reserves, the Council assesses the cost of winding up the charity within one year. The Board takes the view that the investments held currently are adequate to generate funds to sustain the current levels of demand for its services in the foreseeable future. The Board is not a fundraising charity and does not employ fundraisers. It therefore relies on this investment income and growth in the value of investments to fund operational costs and grants to Constituent members.

INCOME

Donations And Legacies

Whilst it does not actively fundraise amongst the public, the Board is always extremely grateful for any donations and legacies received, which are fully utilised in support of its objects. During 2023, donations in the sum of £7,084 (2022: £5,554) were received. No legacy income was received in 2023.

Government Contracts & Grants

In March 2022, the Board signed a contract with the Department for Transport and was in receipt of £2,100,000 to support projects relating to people, skills and diversity. The grant was allocated according to the Government's financial year from April 2022 to March 2023. This funding came as the Maritime Minister launched the new recovery route map, setting out the actions to help the sector recover from the effects of the pandemic. It is also in support of the Government's Maritime 2050 strategy. While no further Government grants were received in 2023, £1,085,426 of the funding was brought forward to 2023. Of this sum, £958,979 was given in grants and £123,571 transferred to the NSWB Development Fund. At the end of the year, £86,637 of the NSWB Development Fund was carried forward at end of year.

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INVESTMENT INCOME AND POLICY

MNWB’s investment portfolio was created when it sold the Merchant Navy Hotel in Lancaster Gate, London in 2002. It was the intention of the then Trustees that this would provide sustainable funding for the Board’s operations in order to provide better support to its Constituent Members.

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 £42,786 in 2023 (2022: £41,574). 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 counterbalance 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.

The Board’s Investment Sub-committee meets twice annually in July and October. The investment managers attend the March Council meeting to appraise trustees on the previous year’s investment performance and forecast for the coming year.

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 Manager 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 to it. The Board's Investment Policy has been strengthened to include a commitment to be provided with an ESG (Environmental, Social, and Corporate Governance) report on an annual basis.

MNWB GRANTS

During the year, the following grant offers were made from MNWB’s own funds.

Organisaton Project Amount
Mission to Seafarers Improvements at Falmouth Seafarer Centre ahead of Tall
Ships 2023		 £6,778.08
MNA Merchant Navy Day Commemoratve Service & Reunion £500.00
The Fishermen's Mission North Shields Centre Access £1,812.00
Nautlus Welfare Fund Dining room tables and chairs for the dementa wing in the
care home		 £1,754.40
QVSR Bristol Seafarers' Centre - 24 hour provision £25,000.00

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Mission to Seafarers -
South Shields		 2 x Laptops £2,343.47
Nautlus Welfare Fund Replacement of fooring at Mariners' Park £2,344.66
Nautlus Welfare Fund Vital Signs Machine £1,743.18
Lighthouse Seafarers'
Mission		 Project Upgrade - TV and boiler £3,806.67
The Royal Liverpool
Seamen's Orphan
Insttuton		 Development of new modern and interactve website £5,000.00
MtS North Tees and
Hartlepool		 Hot Water Provision £5,000.00
Aberdeen Seafarers'
Centre		 Bicycles for Seafarers £4,339.76
ANSS Annual Natonal Service for Seafarers 2023 £1,000.00
Royal Alfred Seafarers’
Society		 Nurse call system and Lif repair/upgrade £30,496.00
QVSR Tilbury Cruise Crew Lounge £4,999.00
Sailors' Children's
Society		 Home Computers £3,930.23

DEPARTMENT FOR TRANSPORT GRANTS

During the year, the following grant offers were made from the carried forward balance of funding received from the Department of Transport in 2022.

Organisaton Project Amount
MNWB NSWB and Port Visitor platorm £148,620.00
Mission to Seafarers Core Funding for our Portside actvites in 2023 - Region 1:
South-West and Wales		 £19,752.00
Mission to Seafarers Core Funding for our Portside actvites in 2023 - Region 2:
Southampton		 £14,034.00
Mission to Seafarers Core Funding for our Portside actvites in 2023 - Region 3:
North-East		 £36,785.00
Mission to Seafarers Core Funding for our Portside actvites in 2023 - Region 4:
Scotland		 £4,429.00
Mission to Seafarers Suicide Preventon Training £46,475.00
Stella Maris Enhancing the quality and consistency of care provision to
seafarers by Stella Maris		 £17,000
Stella Maris Northern Ireland Ship Visitng Team £56,777.00
Sailors' Society Applicaton 1 - UK Wellness at Sea Resources £22,550.00
QVSR Humber Seafarers' Centre Refurbishment Project £173,178.00
QVSR Felixstowe Seafarers' Centre Refurbishment Project £114,988.00
QVSR Bristol Seafarers' Centre Refurbishment Project £63,070.00
QVSR London Tilbury Communicaton Space Project £11,351.00
QVSR Assistant Operatons Managerpost £65,000.00
Women in Transport Transport EquityIndex £10,000.00

GRANTS ADDED BACK

Some grants were not fully expended and in 2023 a total of £47,614 was written back into the Board’s funds (2022: £9,340).

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RESTRICTED FUNDS

The Board maintained restricted funds for support programmes and projects, as follows:

EXPENDITURE

Staff

The Board employs nine full-time members of staff directly in its work, including a position funded by the Department of Transport for the disbursement and impact monitoring of grant funding.

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 fulltime 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. Following a presentation by Fairstone pension advisors, the Board introduced a salary exchange scheme in 2023, which eight out of nine employees elected to join.

Offices

The Board has a 10-year repairing lease for its offices at 8 Cumberland Place, Southampton S015 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. In 2022 general maintenance of the building was undertaken, fulfilling our obligations under the terms of the lease. The premises adequately meet the Board's needs for now and in the short term. The current lease is due to terminate on 30th November 2030 with a break point and rent review scheduled in 2025.

Professional Fees

The Board incurred professional fees in 2023 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.

Accountancy fees

The Board's accounts administration is undertaken by Winchester Bourne Ltd, for which it pays a fee.

Membership of Organisations

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

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In 2024, the Board intends to undertake a review of these memberships to ensure that they provide value for money.

STRATEGIC PLAN

During the year, staff started implementing the Board's strategic plan, as approved by Trustees in 2022, which covers the period 2023 – 2025. This plan will be reviewed and updated annually to ensure that it is relevant and responsive to the changing needs of seafarers, fishers, and their families.

Vision

To be the representative voice and driving force for the welfare of merchant navy and fishing communities in the UK.

Mission

To improve the lives of seafarers and fishers by raising welfare standards in collaboration with our stakeholders.

Values

Our core values are non-negotiable and fuel our vision for the welfare of seafarers, fishers, and their families. While there are many other values we hold, these have been selected as the dominant ones that will really shape our culture, what we represent and how we deliver for our stakeholders.

Leadership: We will lead with Integrity and professionalism, representing Constituent organisations at the highest levels of government and industry.

Communication: We will support our key relationships through authentic communications, always treating people with respect and dignity.

Innovation: We will pursue innovative solutions that create economic and social value, adopting an evidence-based approach to everything we do.

Collaboration: We will celebrate the full spectrum of diversity within and outside of our organisation, building strong collaborative networks that create new opportunities and possibilities.

STRATEGIC OBJECTIVES

Leadership

Communication

Innovation

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Collaboration

COMPLETED OBJECTIVES

ONGOING OBJECTIVES

IMPACT DURING 2023

MNWB Services

During the year, alongside its strategic objectives, the Board continued to provide core services to its Constituent members and directly to beneficiaries. During the year, the following services were provided:

Training: portfolio of free courses for Constituent members and Port Welfare Committees. Seafarer Support: signposting service for serving and retired seafarers and fishers.

Case Working: supporting seafarers and fishers with access to support services and financial support. Port Visitor: support platform for Port Welfare Committees and welfare directory for seafarers. Whistleblowing Service: pilot project to establish whether this service could add value to members. Vehicle Replacement Programme: providing access to safe and reliable vehicles for seafarers.

MNWB Grants

MNWB's main priority is to provide support services to its Constituents, PWCs and working groups, and its secondary priority is to provide capital grants. The amount made available for grants annually is based on the overall return from the investment portfolio after deducting revenue costs and services to Constituents.

Page 14

Under the Small Grants Programme, the Chair and Chief Executive Officer are authorised to allocate individual grants of up to £5,000 throughout the year, up to a total annual limit of £50,000.

Department for Transport Grants

In 2022 MNWB was awarded £2.1 million by the Department for Transport to be made available to maritime charities and organisations to support the maritime sector, specifically around seafarers’ welfare and skills. 15 UK charities and organisations have been funded through the Department for Transport grant programme in 2022/23, some receiving more than one grant.

Skills & Diversity: Plugging skill gaps, broadening the pool of talent, providing an equal opportunity for all, and fostering creativity.

People: Research into, and support for, UK programmes to alleviate seafarer and fishers' mental health and wellbeing.

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:

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:

Page 15

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: AK Cassels, Chair Dated:

Page 16

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 2023 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:

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.

Page 17

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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:

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 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

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.

Page 18

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

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

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

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 19

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, and to the charitable company's trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and Trustees 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.

Michael Bath BSc FCA DChA (Senior statutory auditor)

for and on behalf of

James Cowper Kreston Audit 4 Cumberland Place Southampton SO15 2NP

Date:

James Cowper Kreston Audit are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 20

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023

Note
Income from:
Donations, legacies and grants
3
Investments
4
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities:
Support services to Constituent
Members
7
Grants to support the work of
Constituent Members
7
Support to promote welfare activities
8
Total expenditure
Net (expenditure)/income before net
gains/(losses) on investments
Net gains / (losses) on investments
Transfers between funds
17
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
7,084
306,758
5,834
319,676
42,786
80,580
81,457
724,523
929,346
(609,670)
704,263
128,854
223,447
13,391,656
223,447
13,615,103		 Restricted
funds
2023
£
211,118
-
-
211,118
-
1,265,412
-
-
1,265,412
(1,054,294)
-
(128,854)
(1,183,148)
1,407,198
(1,183,148)
224,050		 Total
funds
2023
£
218,202
306,758
5,834
530,794
42,786
1,345,992
81,457
724,523
2,194,758
(1,663,964)
704,263
-
(959,701)
14,798,854
(959,701)
13,839,153		 Total
funds
2022
£
3,860,964
247,894
7,048
4,115,906
41,574
2,821,834
189,282
592,427
3,645,117
470,789
(1,128,842)
-
(658,053)
15,456,907
(658,053)
14,798,854

The notes on pages 24 to 40 form part of these financial statements.

Page 21

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

BALANCE SHEET AS AT 31 DECEMBER 2023

Note
Fixed assets
Tangible assets
12
Investments
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 -
80,558
233,662
314,220
(154,410)		 2023
£
2,462
13,676,881
13,679,343
159,810
13,839,153
13,839,153
224,050
13,615,103
13,839,153		 182,640
46,091
1,077,493
1,306,224
(161,830)		 2022
£
6,847
13,647,613
13,654,460
1,144,394
14,798,854
14,798,854
1,407,198
13,391,656
14,798,854

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 and signed on their behalf by:

................................................ ................................................ Captain A K Cassels Mr G Lane Chairman of the Council Member of the Council Date: Date:

The notes on pages 24 to 40 form part of these financial statements.

Page 22

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

Cash flows from operating activities
Net cash used in operating activities (note 20)
Cash flows from investing activities
Dividends and interest from investments
Purchase of tangible fixed assets
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
The notes on pages 24 to 40 form part of these financial statements		 2023
£
(1,818,285)
299,459
-
3,265,620
(2,590,625)
974,454
(843,831)
1,077,493
233,662		 2022
£
71,894
247,894
(5,558)
3,379,693
(2,975,345)
646,684
718,578
358,915
1,077,493

Page 23

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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 2019), 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 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.

Page 24

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. Accounting policies (continued)

1.5 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.

Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

1.6 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

1.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless 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.

1.8 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.

1.9 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Page 25

MERCHANT NAVY WELFARE BOARD (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. Accounting policies (continued)

1.10 Debtors

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

1.11 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.

1.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

1.13 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.

1.14 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.

1.15 Fund accounting

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

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.

Investment income, gains and losses are allocated to the appropriate fund.

Page 26

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. Critical accounting estimates and areas of judgment

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

Critical accounting estimates and assumptions:

Donated gifts require a level of esimation to be applied when there is no monetry value associated with the gift that has been provided.

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

Critical areas of judgment:

Legacy income entitlement requires a level of judgement in the financial statements by determining the point at which to recognise the income after notificaiton has been received.

3. Income from donations, legacies and grants

Unrestricted
funds
2023
£
Donations
7,084
Grants
-
7,084
Total 2022
5,554		 Restricted
funds
2023
£
-
211,118
211,118
3,855,410		 Total
funds
2023
£
7,084
211,118
218,202
3,860,964		 Total
funds
2022
£
1,565,554
2,295,410
3,860,964

4. Investment income

Unrestricted
funds
2023
£
Quoted UK and Non-UK investments
299,459
UK Portfolio cash interest
7,299
306,758
Total 2022
247,894		 Total
funds
2023
£
299,459
7,299
306,758
247,894		 Total
funds
2022
£
245,371
2,523
247,894

Page 27

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

5. Other income

Rental of car park spaces
Courses
Sundry income
Total 2022
6.
Raising Funds

Portfolio management fees
Total 2022		 Unrestricted
funds
2023
£
2,766
3,068
-
5,834
7,048
Unrestricted
funds
2023
£
42,786
41,574		 Total
funds
2023
£
2,766
3,068
-
5,834
7,048
Total
funds
2023
£
42,786
41,574		 Total
funds
2022
£
3,211
2,618
1,219
7,048
Total
funds
2022
£
41,574

Page 28

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

7. Support services to constituent members

Unrestricted
expenditure
2023
£
Vehicle Replacement Fund
-
MN Medal Fund
-
IPWP Programme
-
Ukrainian Seafarers Emergency Comms
-
Recognition of Carers
-
ABP Humber Levy
-
MNA Emergency Support Fund
-
MiFi Project
-
DfT Seafarer Wellbeing
-
C188 Training Trinity House DfT Fund
-
Caseworker costs
10,825
Training courses
8,472
Evaluation studies
3,753
Port welfare promotion
4,643
Merchant Navy Fund promotion contribution
4,648
Seafarer Support
17,170
MNWB Public relations & Marketing
16,523
Annual Seafarers Welfare Conferences
35,423
Ambassadors
2,594
NSWB/PWC Development
(23,471)
80,580
Grants to support the work of Constituent
Members
81,457
162,037
Total 2022
291,268		 Restricted
expenditure
2023
£
63,029
712
67,885
182,640
-
73,012
-
16,633
849,674
11,827
-
-
-
-
-
-
-
-
-
-
1,265,412
-
1,265,412
2,719,848		 Total
2023
£
63,029
712
67,885
182,640
-
73,012
-
16,633
849,674
11,827
10,825
8,472
3,753
4,643
4,648
17,170
16,523
35,423
2,594
(23,471)
1,345,992
81,457
1,427,449
3,011,116		 Total
2022
£
128,088
1,342
78,166
1,382,920
8,284
87,164
60
19,250
961,245
-
14,067
25,151
2,117
4,529
3,700
9,133
13,342
29,020
927
-
2,768,505
189,282
2,957,787

Page 29

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

8. Support to promote welfare activities

Management
2023
Governance
2023
£
£
Office running costs
33,528
-
Staff life assurance and training
10,497
-
Subscriptions and publications
11,467
-
Other costs
124,718
-
Head office costs
-
20,338
Trustees' expenses
-
828
Legal and Professional Fees
-
373
Accountancy
-
21,662
Auditors' remuneration
-
16,608
Wages and salaries
355,301
26,924
National insurance
41,480
-
Pension cost
57,634
-
Depreciation
4,385
-
639,010
86,733
-
-
Mi-Fi Support - Administration costs
(1,000)
-
MN Medal Fund Support - Administration
costs
-
-
638,010
86,733
Total 2022
513,345
79,082		 Total
2023
£
33,528
10,497
11,467
124,718
20,338
828
373
21,662
16,608
382,225
41,480
57,634
4,385
725,743
-
(1,000)
-
724,743
592,427		 Total
2022
£
27,569
3,637
2,839
90,004
21,025
4,173
2,193
18,795
10,120
330,008
38,635
42,651
3,778
595,427
-
(2,000)
(1,000)
592,427

9. Governance Costs

Unrestricted
funds
2023
£
Support Costs
59,809
Wages and salaries
26,924
86,733		 Total
funds
2023
£
59,809
26,924
86,733		 Total
funds
2022
£
56,306
22,776
79,082

Page 30

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

10. Operating expenditure

2023 2022
£ £
Depreciation of tangible fixed assets: owned by the charity 4,385 3,778
Auditors' remuneration - audit 9,300 9,020

During the year, no Trustees received any remuneration (2022 - £NIL)

During the year, no Trustees received any benefits in kind (2022 - £NIL).

During the year, Trustee expenses were paid to five (2022 - five) Trustee amounting to £828 (2022: £4,173).

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2023
£
382,225
41,480
57,634
481,339		 2022
£
330,008
38,635
42,651
411,294

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

2023 2022
No. No.
9 9

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

2023 2022
No. No.
In the band £70,001 - £80,000 - 1
In the band £80,001 - £90,000 1 -

The key management personnel of the charity recieved aggregate remuneration of £175,361 (2022: £169,134).

Page 31

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

12. Tangible fixed assets

Cost or valuation
At 1 January 2023
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022
Fixed asset investments
Cost or valuation
At 1 January 2023
Additions
Disposals
Revaluations
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Fixtures and
fittings
£
14,951
14,951
14,951
-
14,951
-
-
Listed
securities
£
13,539,647
2,528,589
(3,265,620)
704,263
13,506,879
13,506,879
13,539,647		 Computer
equipment
£
54,564
54,564
47,717
4,385
52,102
2,462
6,847
UK Portfolio
cash
investments
£
107,965
62,037
-
-
170,002
170,002
107,965		 Total
£
69,515
69,515
62,668
4,385
67,053
2,462
6,847
Total
£
13,647,612
2,590,626
(3,265,620)
704,263
13,676,881
13,676,881
13,647,612

13. Fixed asset investments

Page 32

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Investments at market value comprise:
Listed securities
Cash and settlements pending
Total Market value
Historical cost of listed securities held
Historical cost
14.
Stocks
SIM cards
15.
Debtors
Other debtors
Prepayments and accrued income		 2023
£
13,506,879
170,002
13,676,881
2023
£
11,606,405
2023
£
-
2023
£
63,754
16,804
80,558		 2022
£
13,539,647
107,965
13,647,612
2022
£
11,852,202
2022
£
182,640
2022
£
16,240
29,851
46,091

Page 33

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

16. Creditors: Amounts falling due within one year

Trade creditors
Grants payable
Other taxation and social security
Other creditors
Accruals and deferred income		 2023
£
14,690
83,594
12,762
3,550
39,814
154,410		 2022
£
30,601
64,540
11,978
1,460
53,251
161,830

Page 34

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

17. Statement of funds

Statement of funds - current year

Unrestricted
funds
Unrestricted
funds
Designated fund
Restricted
funds
Vehicle
Replacement
Programme
MN Medal Fund
IPWP
Programme
DfT Seafarer
Wellbeing
MiFi Project
ABP Humber
Levy
Ukrainian
Seafarers
Emergency
Comms
Ukrainian SIM
Cards
Recognition of
Carers
C188 Training
TH DfT Fund
EEDI Project
Total Restricted
funds
Total of funds		 Balance at 1
January
2023
£
13,391,656
-
13,391,656
83,739
1,593
30,951
1,085,426
23,192
-
(559)
182,640
216
-
-
1,407,198
14,798,854		 Income
£
319,676
-
319,676
92,402
1,704
-
20,000
6,000
73,012
-
-
-
15,000
3,000
211,118
530,794		 Expenditure
£
(929,346)
-
(929,346)
(63,029)
(712)
(67,885)
(849,674)
(16,633)
(73,012)
-
(182,640)
-
(11,827)
-
(1,265,412)
(2,194,758)		 Transfers
in/out
£
(871,146)
1,000,000
128,854
-
-
123,571
(252,876)
-
-
559
-
(108)
-
-
(128,854)
-		 Gains/
(Losses)
£
704,263
-
704,263
-
-
-
-
-
-
-
-
-
-
-
-
704,263		 Balance at
31
December
2023
£
12,615,103
1,000,000
13,615,103
113,112
2,585
86,637
2,876
12,559
-
-
-
108
3,173
3,000
224,050
13,839,153

Page 35

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

17. 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.

I PWP 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.

MiFi Project

A project managed by MNWB to provide Ship Welfare Visitors with mobile internet hubs (MiFi units) to improve communications and seafarers’ welfare in ports. This project is funded by MNWB, The Seafarers’ Charity and the Department for Transport.

ABP Humber Levy

The Humber Port Levy is a scheme introduced by port owner, ABP Humber. The Board provides administrative support for the scheme and acts as a clearing house for the distribution of funds to welfare providers in accordance with the agreed distribution formula.

Ukranian SIM cards

In April, an application was made to Vodafone UK’s charities.connected scheme for the provision of 8,000 free SIM cards for Ukrainian seafarers visiting UK ports. The application was successful, and the SIM cards were distributed through the Board’s constituent organisations that employ ship visitors in UK ports. A further application for 5,000 SIM cards was made in July, which was again successful. These were Pay as You Go SIMs that each came with 20GB data each month plus unlimited calls and texts for a period of six months (activated on use). The total gift in kind value of these SIM cards is £1,560,000.

DfT Seafarer Wellbeing

In March, the Department for Transport approached MNWB and requested that it manage a £2,100,000 grant fund. The grant scheme is in support the maritime sector, specifically seafarers’ welfare and skills & diversity, and was formerly launched in May. The Covid pandemic, conflict in Ukraine and other crises have taken their toll on seafarers; welfare charities working on the front line have been under pressure to respond to these crises. The scheme has provided an opportunity for maritime charities to help support the recovery of the sector and contribute towards the Government’s ‘Maritime 2050’ strategy.

Page 36

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Unrestricted
funds
Restricted
funds
Vehicle
Replacement
Programme
MN Medal Fund
IPWP
Programme
MiFi Project
ABP Humber
Levy
MNA Emergency
Support Fund
Ukrainian
Seafarers
Emergency
Comms
Ukrainian SIM
Cards
DfT Seafarer
Wellbeing
Recognition of
Carers
Total Restricted
funds
Total of funds		 Balance at
1 January
2022
£
15,277,871
79,775
1,142
69,117
28,942
-
60
-
-
-
-
179,036
15,456,907		 Income
£
260,496
93,053
1,693
-
4,500
87,164
-
5,000
1,560,000
2,100,000
4,000
3,855,410
4,115,906		 Expenditure
£
(925,269)
(128,089)
(1,342)
(78,166)
(19,250)
(87,164)
(60)
(5,559)
(1,377,360)
(1,014,574)
(8,284)
(2,719,848)
(3,645,117)		 Transfers
in/(out)
£
(92,600)
39,000
100
40,000
9,000
-
-
-
-
-
4,500
92,600
-		 Gains/
(Losses)
£
(1,128,842)
-
-
-
-
-
-
-
-
-
-
-
(1,128,842)		 Balance at
31
December
2022
£
13,391,656
83,739
1,593
30,951
23,192
-
-
(559)
182,640
1,085,426
216
1,407,198
14,798,854

Page 37

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Tangible fixed assets
2,462
Fixed asset investments
13,676,881
Current assets
90,170
Creditors due within one year
(154,410)
Total
13,615,103		 Restricted
funds
2023
£
-
-
224,050
-
224,050		 Total
funds
2023
£
2,462
13,676,881
314,220
(154,410)
13,839,153

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2022
£
6,847
13,647,613
(100,974)
(161,830)
13,391,656		 Restricted
funds
2022
£
-
-
1,407,198
-
1,407,198		 Total
funds
2022
£
6,847
13,647,613
1,306,224
(161,830)
14,798,854

19. 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 £42,651 (2022 - £42,651). At the Balance Sheet date contributions of £780 (2022 - £780) were outstanding.

Page 38

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gain/loss on investments
Dividends and interest from investments
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by/(used in) operating activities		 2023
£
(959,701)
4,385
(704,263)
(299,459)
182,640
(34,467)
(7,420)
(1,818,285)		 2022
£
(658,053)
3,778
1,128,842
(247,894)
(182,640)
1,685
26,176
71,894

21. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents
Cash at bank and in hand		 At 1
January
2023
£
1,077,493
1,077,493		 2023
£
233,662
233,662
Cash flows
£
(843,831)
(843,831)		 2022
£
1,077,493
1,077,493
At 31
December
2023
£
233,662
233,662

22. Contingent asset

The charity has been notified of a legacy. At the date of approval of these financial statements no reliable estimate of the amount that the charity may receive can be made, and so no asset is recognised.

Page 39

MERCHANT NAVY WELFARE BOARD

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

23. Operating lease commitments

At 31 December 2023 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2023
£
30,165
118,138
53,667
201,970		 2022
£
31,665
113,081
81,667
226,413

24. 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.

25. Controlling party

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

Page 40