NAUTILUS WELFARE FUND A Registered Charity administered by Nautilus International. Annual Report and Accounts For the year ended 315t December 2020 Address Nautilus House Mariners. Park Wallas•y CH45 7PH Re9lstered Office 1&2 ThÈ Shrubb•ri•s Geor9e Lane South Woodford London E18 1 BD Charity number 218742 Nautilus Welfare Fund ANNUAL REPORT AND ACCOUNTS FOR THE YMR ENDED 31 DECEMBER 2020 Contents Page Trustee's Report Independent Auditors. Report 13 Ststement of Financial Activities 15 Balance Sheet 16 Cash Flow Statement 17 Notes to the Financial Statements 18 Nautilus Welfare Fund TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 REFERENCE AND ADMINISTRATION INFORKIATION MANAGING TRUSTEE AND CHARITY ADMINISTRATOR The Council of Nèutilus International Head Office 1&2 The Shrubberies George Lane South Woodford London E18 1 BO Tel.. 020 8989 6677 Fax.. 020 8530 1015 E-mail acco Northern Office Nautilus House Mariners. Park Wallasey CH45 7PH Tel.. 0151639 8454 Fax.. 0151346 8801 E-mail welfare usintor CUSTODIAN TRUSTEE Nautilus Trustees Ltd 1&2 The Shrubberies George Lane South Woodlord London E18 1 BD INVESTMENT ADVISER Tilney Royal Liver Building P￿r Hebd Liverpool L3 INY INVESTMENT CUSTOIMAN Pershing Securities Ltd Royal Liver Building Liverpool L31NY 5QUUtOR 1 St. Paul's Square Liverpool L3 9SJ AUDITORS HaysMac1nty￿ LLP 10 Queen Street Place London EC4R 1AG PRINCIPAL BANKER Unity Trust Bank PIC Nine Brindley Place Birrningham B1 2HB The Charity Bank Ltd F05se House 182 High Street Tonbrid9e TN9 IBE Nautilus Welfare Fund TRUSTEE'S REPORT Icvntsnuedl FOR THE YEAR ENDED 31 DECEMBER 2020 REFERENCE AND ADMINISTRATION INFORMATION {eontlnts•d) Members of the Council of Nautilus U Jurgen5 International at Balance Sheet date W Van Hoboken l MacKenzie A M Dickinson Chair Wice Chair Deputy Vice Chair General Secretary S Belfitt J Cameron T Cardy R Cleland A Corrie P Lees M Lloyd H Ludwig F Matthew P Mcmillen P Minter S Schravemade J Tyson J van der Zee J Wainman R Downs H Eijkenaar G Feikema G Fisher A Gale M Graves N Groen S Gudgeon W Jackson B Khan E Layfield Secretary to the Council of Nautilus A M Dickinson (General Secretary, Noutilus Internationall International Members of the Nautllu5 Welfare Fund RCThornton Committee at Balance Sheet Date J McAuslan A M Dickin50n Chair Trustee Director pnpral Secretary F O'Neill M Reeves A Stewart J Stong M Watts L Whitehead W van Hoboken C Halrsbne J Hofton W Jackson N Martin F Matthew P Minter D Morrison Secretsry to the Nautilus Welfare Fund R Cunningham To- 3110412020 O Tunde From 0110512020 Nautilus Welfare Fund TRUSTEE'S REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020 Introduction The Trustee presents its Annual Report together with the financial stat&menis for the year-ended 37 December 2020. The form ènd content of the report and financial statements complies with the Charity's governing document, the Charities Act 2011 and the Charitie5 SORP Accounting and Reporting by C1￿￿1￿e5.. StatemElIt ofjRecommended practi￿ applicable to ch8ririespreFanng theiraccounts in accord8nce with the Fin8ncialReporting St8ndardapplicablÈ In the UKandRepublic of Ireland{FRS 102), and with FRS102. The information on the preceding pages also forms part of this report. OBJEcnvES AND ACTIV￿llEs The charitable object of the Charity as set out its governing document is the relief of beneficiaries who are in need, hardship or distress by any of the following means.. 111 Providin9 accommodation. and if required. residential or nursing care. 121 Making annual pensions or one off grants of money 13} Providing or paying for goods seNice5 or facilities 141 Making grants of money to other persons or bodies that provide goods services or facilities to beneficiarie 151 Developing new and enhanced services lor beneficiaries by means of research or otherwse, and where appropriate in conjunction with other bodies or persons During 2020 the Charity continued to meet the challenge of its stated overarching objective.. To Provide a High Quality Cost Effective Service to Necessitous Seafarers and Their Dependants. Thi5 has been achieved through all the means gtated above. The Trustee continue to review the operational objectives for the Charity and the revised objectNe5 are set out below. Tu ensure 5ufficleni supply of good, modern accommodation to the highest standards laid down in relevant regulation5 and codes of practice. To ensure a responsive, CoMp￿henSlve quality care offering across a whole range of needs. To develop an effective advice. information and gTrnt support service to promotg indppendent living to seafarors and their dependants. To work in partnership with other maritim• charities and the wider statutory and voluntary sector organi5ations to meet the identified welfare needs of seafarer5 and their dependants. To cnaure the Charity remains financially viable. STATEMENT ON PUBUC BENEFIT The Trustee ctsnfirms that it has complied with the duty in section 17 of the Charitie5 Act 2011 to have due regard to publit benefit guidance published by the Commission in determining the activities undertaken by the Charity FUNDRAISING The Charity has Justgiving fundraising page. Nautilus Weware Fund TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER2020 ACHIEVEMENTS AND PERFORMANCE It must be said from the outset that 2020 has been dominated by the Covid Pandemic. The first Lockdown frorn March to June was particulady challenging. There was an outbreak of the virus in the Care Home and at least 4 residents died of Covid and a total of 13 residents passed away in an 8 week period. Up to 6 staff were absent due to being extremely Clinically vulnerable, as well as 10 staff absent due to Covid or self isolating as they had been in contact with someone who had tested P051tive. Tl)e Care Home was closed to new admissions in line with Infection Control procedures ènd occupancy fell to from 32 to 21 residents during this period. The Staff Team performed heroically during this particularly challenging time when they also had to adapt to wearing PPE. Across the wider Mariners, Park residents who had to follow the"Stay at Home. message were supported by staff olfering a shopping and tlledication service. Some 4 residents tested positive. but all recovered There was a halt on all house moves for some 3 months meaning any vacant properties stayed ullallocated. The consequences of the Pandemic impacted significantly on income levels due to low occupancy in the Care Home and across the Park Properties. There were alsts higher costs due to covering stall shielding and self isolating as well as PPE costs creating a 'perfect storm. The value of investments has negatively impacted by the virus and dividend income was down by over £100,000 and the full details of this can be found in the Finance Section of this Annual Report Post June, as the Pandeniic eased along with the lockdown restrictions, occupancy recovered, and some shidding staff returned. Since then, there has been a focus on responding to the latest Government Guidelines on Covid to ensu￿ residents and staff are kept Safe. This has including a massive expansion to staff an(J resident testing, as well as managing sale visiting the Care Home. including creating a 'Visitor Pod.. In many respects responding to the demands of thè Pandemic has been the single dominant achievement of 2020, an achievement which continues to impact in 2021. A number of plans had to be 'paused- in 2020 due the all-consuming Pandemic. Despite this 2020 did see progres5 in all the key objectives ol the Charity summarised below ro ENSURE sUF￿￿ENT SUPPLY OF GOOD. MODERN ACCOMMODATION At the heart of the Charity's woik iy M¢Jiiii¥fs' Park in Wallasey sliuated on the banks of the Kiver Mersey. Opened 160 years ago to prowde seafarers with good quality housing, Ca￿ and companionship when they came ashore at the end of their working lives, Mariners, Park prowdes 125 apartment& bungalows and houses on a 16 acre site overlooking the iconic Liverpool waierfront. I he key achievements in 2020 include.. Work ha5 commenced on the refurt)ishment of Gibson House. Once this first phase is completed. work will hègin on the 26 place apartrnent scheme to which the Charity will have 1(K) % nomination rights, further eKpanding the number of homes for retired mariners Plans to replace Nautilus House with a new combined office and 27 apartments for resident have been developed and will be presented to the Nautilus Welfare Fund Committee and the Council in lune 2021 There were a range of improvements at the Mariners, Park Estate including completion of the 5 year electrical safety check on all properties, new doors on the substation, new white line painting across the Estste and the fitting of new aulomatic opening doors to ihe Laundry and Games Room in Trinity House Hub There have been a number of improvements at the Care Home including installation of new smoke detectors enhanced safety lighling, new flooring in the Dementia Wing as well as creating an indoor Visitor Pod Nautilus Welfare Fund TRvsfEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 TO ENSURE A RESPONSIVE COMPREHENSIVE QUALrrY CARE OFFERING. At Mariners, Park the Fund operates a residential and nursing home, and a domiciliary care service. The Care Home provides both lon9-term and respite care and include5 a Specialist dementia service. The Domiciliary Care service provides a 24n service in our extra care housing facility, as well as providing a Home Care service to residents on the wider Estate. Achievements in 2020 include Further enhancement5 in the Care Home staffing levels to respond to an increase in dependency levels of residents. Funding for the continuation of the Admiral Nurse post, a specialist dementia nurse, was secured for 2 further years from both Seafarers Hospital Society and Trinity House. and we are very grateful for their tontinued support with this important service. A new meals service was introduced with our partners Apetito in November. This ensure a varied seasonal menus and accurate promsion of the increasing number of texture modified rneals needed by residents. A new medication management system wa5 introduced, E-mar, to ensure 100 % compliance when medicines are administered There was a Care Quality Commission Infection Control Inspection at the Care Home to the Pandemic and all checks were passed Funding was secured to continue both the Men's Activity post for the Mariners. Park residents and the Physiotherapy post for the Care Home Additional capacity to undertake essential shopping and medication collection was created by the Home Care team at the outset of the Pandemic, as well as a weekly call check with all residents Nautilus Weltarè Fund TRUSTEE'5 REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 TO DEVELOP AN EFFEcrtVE ADIACE. INFORMATION AND GRANT SUPPORT SERVICE The Charity operates a 'Caseworker' Service. Four caseworkers a￿ employed in Merseyside, Glasgow, Hull and Portsmouth. visiting mariners in their own home and supporting them to secure welfare benefits and grants to improve their financial P051tion, as well a5 helping them access health and social cère services to maKimise their independence. The Charity also operates a one-off grant service for essential items needy mariners canntst afford. A regular grant of £624 pèr annum is also available for existing beneficiaries with on-going financial hardship. Achievements in 2020 included.. The Caseworker service supported some 414 mèriners and their dependants and generated some £1,000, 018 in benefits and grants. Thi5 15 srnall decrease compared to 2019 in the numbers asslsted but a significant increase of over £200.000 in the amount of benefits and grants secured. The reason for the decrease in the number ol cases was a reduciron in referrals in the April to June quarter when the lirst lockdown was in place.. The Charity continues to provide one oiy grants to needy mariners and spent over £25.CK)O funding essential items to 57 mariners. The Charity also provided 31 mariners with a Regular Grant in 2020,. Throughout 2020 the Caseworkers worked hard to lind 'hidden' veteran merchant mariners and ensure they receive all eligible benefits and Se￿I(e* as part of an initiative fvnded by the Aged Veterans Fund. Over 70 cases were identified and assistance provided. TO WORK IN PARTNERSHIP WTTH OTHER MARMME cHAR￿lEs AND THE WIDER STATUTORY AND VOLUNTARY SECTOR. The Charity continues to work closely with the other marititne charities particularly Seafarers UK, Seafarers Hospital Society, Shipwrecked Marineis, Society, Trinity House, ITF Seafarers, Trust and the Merchant Navy Welfare Board and those charities who attend the Older Peoples Families Working Group, led by the Merchant Navy Welfère Board. The Charity is also represented on the Maritime Charities Group. Achievements in 2020 include.. The Charity has continued to be an active member of the Maritime Charities Group and has helped shape the MCG'S new f(pcu> oil yiuiiiutiiiy collaboration across ihe mantime chantable sector. The Charity also took responsibility for hosting the new MCG Mallager post The Charity has continued to work in partnership with Seafarers UK and the Institute of Public Care to both deliver seNices to veteran mariners and help evaluate their impact 2020 saw the publication of the interim report 'Understsnding the Needs of Older Merchant Nawy Veterans., and a report evaluating the impact of the caseworker sprvicg.. The partnership with Trinity House has continued in 2020 with the continuation of a significant grant from Trintty House to support operational servir.g< at ihe Trinity House Hub •xtra carè housin9 scherne ae well a" the Admiral Nurse post ¢ontributin9 to the fundin9 of A new Partne￿ hip flourished with Shipwrecked Mariners, Society ISMS) iii 2020, with the Mersey51de caseworker raking on a reviewing role for SMS beneficiaries in the Merseyside area.. Nautllus Welfare Fund TRVSTEE'S REPORT (contlnued) FOR THE YEAR ENDED 31 DECEMBER 2020 ACHIEVEMENTS AND PERFORMANCE {eontinu•d) 2020 saw the further extension of the partnership with the Seafarers Hospital Society and Chapel House Dementia Community to establish and evaluate the impact of the Admiral Nurse projert at Mariners. Park to provide extrd 5UPPOrt to familie5 facing the challenge ol dementia. Outside of the Maritime Chariiy world, the Charity ctsntinues to be an active member of both the COBSEO Housing Cluster and the COBSEO Care Home Cluster, as well as an active member of the North West Port Welfare Committee ENSURE THE NAUTILU5 WELFARE FUND REMAINS FINANCIALLY VIABLL Ensuring the Charity is fi'nancially viable centres on maximising income from the Charity's investrnents, ensuring high occupancy of the Mariners, Park properties and the Care Home, keeping costs to the planned budget plus maximising income from maritime charities and other charitable sources .As already noted the Covid Pandemic significantly impacted on occupancy in all services and there were also a ran9e of cost pressures, in particular covering for abseni staff. In 2020 the following achievements are salient.. Continued grant support fiom other rnarititne charities to support new and going services remained important source of funding for the Charity. During 2020 the charity secured funding of £299,000 from Seafarers UK, some £150,000 specifical dedicated to cover Covid income losses and extra stsff costs, £83,000 from Trinity House, £5,000 from MNWB lalso Covid relatedl, £14,000 from the Merchant Navy Fund, £6,180 from Seafarers Hospital Society, £42,882 from Wirral Borough Council for COVID 19 prevention schemes, £6,670 from Shipwrecked Mariners for the Caseworker project noted previously. £IOOO from Community Foundation lor Lancashire and £31,264 from the UK government Job Retention Scheme covering furlough costs (but not replacement costsl. We are very grateful to all ihose who have assisted the Charity for their continued support. To comply with Charity Law, a full audit of the accounts was completed, and the Annual Return was submitted to the Charity Commission. To encourage mL)re donation5 and b4uestS to the Charity a'just giving, facility has been added to the Charity's website nd a le9acie5 leaflel i) (11sD avaikble. In 2020 £100 was received via online donation. Overall, some 735 mariners and their dependants were supported by the Charity in 2020, slightly down from 751 in 2019. As already noted, the main reason for this small dedine was the low number ol referrals to the Caseworker service in the Quarter 2 lockdown period. The Charity continues to be opell to all former seafarers and their dependants who meet the eligibility criteria, which includes having a sionificant career at sea or allied maritime profession Nautilus Welfare Fund TRUSTEE'S REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020 FINIiNCE REVIEW FINANCIAL MANAGEMENT The Charity operates under a scheme of authority delegation. Disbursement of the Charity assets must be properly authorised in accordance with agreed procedures. The Nautilvs Welfare Fund Committee receives regular Management reports and ensures that this is representative of the activities within the Charity. The Committee recommended the year 2020 budget and Major Capital Expenditure (subject to the approved tender proces51 to the Council. The Committee, upon approval from the Council monitors the delivery ol the approved Strategic Plan. FINANCIAL PERFORMANCE The income and expenditure were £3,058,518 and £3,396,307 respectively. The Charitys Investments as at 31 December 2020 stood at a Market Value tsf £8,379,376 against a Book Cost of £6,916,083. In 2020 the net income before investment movements was 1£337,7891 compared to net Jncorne of1£107,1431 in 2019. The net investment loss in 2020 amounted to1£266,1031 comprising a realised Ios5 of £285,515 and an unrealised gain of £19,412. The Charity receives income from the Investment portfolio, provision of services to both individuals and Local Authorities and 5UPPOrt from Trinity House, Seafarers UK, Seamen's Hospital Society, the Merchant Na￿Y well3￿ Board, the ITF Seafarers rrust and others. INVESTMENT POLICY AND PERFORMANCE The Trustee Act 2000 governs the investments held by the Charity. The Trustee has delegated the management of the investment portfolio to Tilney with the objective to tllaximise long total retums commensurate with a moderate degree of risk. Tilney provides quarterly updates regarding the portfolio valve, purchases and sales. Performance of the porttolio is monitored and its total returned measured quarterly against the CAPS I￿elli&11 bviiLIIiTidrk. The performance of the Portfolio over the year was -1.6% against the Target return 3.4% (UK CPI+2%1. The Investment Director at Tilney is required to attend the Nautilus Welfare Fund Committee meeting at lea51 annually to discuss the performance of the investment portfolio. The investmènts are divided between UK and Overseas eouities, qilts and investment trust5. The investrnent portfolio market value at the end of the year fell, broadly mirroring the decrease in the stock market during the year. RISK MANAGEMENT Risk assessment is an intggrxl part of th@ management procass. The Charit/s strategic objectivca and the r15ks of failing to achieve them, drive the risk management process. The Trustee has in place a fomial risk management process which identifie5 the role for the Trustee as.. > Ensuring that the identification, as5e5sment and mitigation of risk are linked to the achievement of the Charity's operational objectives. > Ensuring the process covers all areas of risk e.g. financial, governance, operational and reputstion and is focused primarily on major risks. **Nautilus Welfare Fund** ## **TRUSTEE'S REPORT (continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** Ensuring the process covers all areas of risk e.g. financial governance, operational and reputation and is focused primarily on major risks. Ensuring that the process seeks to produce a risk exposure profile that reflects the trustees' views as to levels 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 procedure, a revision of the risk profile was completed in 2009 and includes positive confirmation that controls are in place to mitigate material risks. The risk profile is reviewed annually by the Nautilus Welfare Fund Committee and by the Council of Nautilus International. This was undertaken in December 2019 by the Committee and the Council. ## **PRINCIPAL RISKS AND UNCERTAINTIES** A key business risk is a poor Care Quality Commission Inspection of the Care Home or Domiciliary Care Service. This could lead to a temporary suspension of placements or, at worse, being closed down. A poor report also brings reputational damage. The Charity relies heavily on Local Authority funding and inadequate financial settlements, particularly in the light of the new Living Wage requirements, could impact significantly on income levels. Rental returns from the properties may be limited in the light of Government policy regarding the level of Housing Benefit payable. A review of the level of financial support for Supported Housing is currently underway, with the outcome expected by the end of the year. Mitigating these risks, and other risks, is included the Annual Risk Management Plan ## **Business Continuity Plan** The risk management process identified the need for a business continuity plan. During 2009 plans were developed which would enable the operation of the Charity to continue in a number of identified situations, for example in the event of a pandemic flu outbreak or major fire. These are reviewed annually by the Nautilus Welfare Fund Committee and by the Council. This was undertaken in December 2020. ## **RESERVES POLICY** The Trustee has built up the level of funds for three main purposes - all long term. The repair and maintenance of the 125 properties in Mariners' Park Est ate. The building of new facilities such as in 2002 a new Care Home and 14 new flats in Gibson Terrace, in 2007-09 ten new bungalows were built, in 2014 the Trinity House Hub Extra Care scheme opened, 2 new bungalows were completed in 2015 and in 2016/17 the building of the Trinity House Seafarers UK wing. In 2019 12 new apartments, John Fay House, were completed. - To ensure adequate resources are available for the long term funding of the payments made each year to needy seafarers and their dependants. The reserves also allow for the smoothing out of investment movements. At 31 December 2020, the Charity held total funds of £24,090,056 and this is available for the general purposes of the charity. A notional value of £5,000 is assigned to endowed funds. This relates to a parcel of land which the charity must either hold in perpetuity or replace on disposal with a similar asset. The free reserves are £478,482 which is considered sufficient and in line with the policy. Nautilus Welfare Fund TRUSTEE'S REPORT (tvntlnuedl FOR THE YEAR ENDED 31 DECEMBER 2020 The balance of the Charity's fund% af f?4.non.()4A Arp thprpforp iinr@stricted and may kse Èxpended by the Charity 3t the Trustee's discretions within the charitable objects. Howéver, the Trustee has elected to designate funds to the value of the following.. Tangible fixed assets. These assets are integral to the operation of thè Charity hence are not readily ￿alisable. > Long-term investments. The investments provide dividend and interest income to support the expenditure on charitsble activities as well as providing for the long-term purposes referred io above In 2016 the Nautilus Welfare Fund Committee reviewed the Charity's resetves policy and the short tem working capitsl reseNes RELATED PARTY The Charity pays the General Fund of Nautilus Intemational for support and administration setvices provided by the stsff employed by both Nautilus International and the Charity. During 2020 this amounted to £113,50012019- £113,500). PLANS FOR FUTURE PEIUODS 2021 promises to be another significant year for the Charity a5 It continues to offer a coMp￿hen51ve range of services and financial support to necessitous seafarers and their dependants. Plans for 2021 include., On the Estate A full proposal will be developed lor a new combined office and residenys accommodation Work will continue to relurbish the Gibson House sile With the support of the Green Deal 14 bun9alow5 will receive external insulation In the Care Home. Refurbish the hair salon Refurbishrnent of another communal bathroom Secure funding for Physiother8py and Admiral Nurse post Continue to operate ihe Infection Control procedures until the Pandemic eases Care and Support Service Secure funding to continue the Activities Coordinator post A new electronic Care Planning System will be introduced Caseworker Service Secure funding ta appoint caseworker post in Cardill and Tyne area Secure future funding to maintain the Hull and Southampton Caseworker posts Seek funding to develop the Caseworker semte in the Tyne area Stsff Support and Governance Revise and update the Charity Staff H3ndbook Complete an Investors in People reaccreditation Complete a Governance reiyew of the Charity (carried over form 2020 plansl Embed the Change Programme and ensure all staff are trained in new Competency Fiamework 10 Nautilus Welfare Fund TftU5TEE'S REPORT (tvntinued) FOR THE YEAR ENDED 31 DECEMBER 2020 STRUCTURE. GOVERNANCE AND MANAGEMENT Governln9 Document The Nautilus Welfare Fund is registered as charity number 218742 and operates in accordance with a Charity Commissioners Scheme dated October 2009. Recruitment selection and In￿¢tiOn of Trustees The Counal of Nautilus Intemational is the Managing Trustee and consists of up to 32 full members of Nautilus International plus the General Secretary who all elected by all full members of the Union. The Council has delegated certain functions, some executive. to the Nautilus Welfare Fund Committee. A number of members of the Nautilus Welfare Fund Committee afe also elected members of the Council. Additional mernbers of the Nautilus Welfare Fund Committee are recruited from the general membership of Nautilus Jnternational on the basis ol their seafaring knowledge and other relevant skill5. New members ol the Cguncil and of the Nautilus Welfare Fund Committee are provided wth relevant background information an¢J training is made available. Organisation The Nautilus Welfare Fund Committee is appointed by the Council, lès Managing Trustee) and reports to the Council. The General Secretary of Nautilu5 International is responsible for appointing a Chair and a Secretary to the Committee. The Secretary of the Committee is responsible for the operational management of the Nautilus Welfare Fund. The Secretary operates within the authority levels delegated by the Council. The Scheme of Delegation is designed to set fi'nancial and operational parameters for the management of the Charity. The Council reviewed the Scheme ol Delegation in December 2017. Managing Oryanisational Performance During 2020, thrée meetings of the Nautilus Welfare Fund Committee were held at which the Strategic Plan and the Operational and Capital Budget5 were approved and monitored. Investment Performance was reviewed at each meeting wilh an in depth review ol investments carried out in June 2018. The Committee also ￿ceiVed regular operational reports from service managers and the outcome of inspections by the Care Quality Commission. The Committee approved new levels ot fees lor the promsion of accommodation, nLJrsino and ￿sIdential care sertrices and approved applications for accommodation. The Committee 8150 continued the ongoing review of the MCFG Report, Supporting Seafarers and their Families.. Challenges for the Future and how the relevant recommendations can be implemented. Regular reports of the CommittÉ)@.£ dplihArxtinn% arp rppnrted to tho Council whi¢h approv@S 3s n@cessary the Committees recommendation Kèy management personnel and the6r pay and remuneralion The day to day operation of the Charity is delegated to employed staff. Staff5 include key management working at the Mariners, Park Estate together with the key management of Nautilus Intemational who provide more strategic input. The pay and remuneration of the key management is determined by market rates and pay reviews are conducted with the staffs representatives. The Nautllus Welfare Fund TRUSTEE'S REPORT IcontillUEd) FOR THE YEAR ENDED 31 DECEMBER 2020 STRUCTURE. GOVERNANCE AND MANAGEMENT {continu#dl Training and stsff Development A Training and Development Han is produced in line wth the Strategic Plan and reflects job fvnctions and Personal Development Plan& During 2020 a range of training was delivered mostly virtual due to the COVID-19 lockdowns. In 2020 a particular focus was inireasing staff awareness and skills relating to infection control and the donning and doffing of PPE. Training to administer both PCR and LFD Covid testing was also completed. Refreshers ori Mowng and Handling. understanding the Mental Capacity Act and issues relating to Dep￿VatIOn of Liberty was also completed. Fire Safety Training was also undertaken. 12 Nautllus WÈlfare Fund TRUSTEE'S REPORT {cvntinuEd) FOR THE YEAR ENDED 31 DECEMBER 2020 TATEMENT OF THE COUNCIL OF NAUTILUS INTERNATIONAL AND THE GENERAL SECRETARY'S RESPONSIBILrrY Rule 12 of the Rules of Nautilus International provides that the Council Is responsible for the absolute control and administration of the affairs and propety of the Union and thus lor safeguarding the assets of the Union and of the Charity. Rule 22.5 provides that the General Secretary shall prowde the Council with such financial statements as it may require. The General Secretary 15 responsible for keeping proper accounting records that disclose with reasonable accuracy at arny time the financial position of the Union and hence reasonable steps for the prevention and detection of fraud and other irregularities. The Nautilus Welfare fund 15 accounted for separately under the same Rules a5 of the Union, set out above. The General Secretary is thus responsible in ensuring that the financial statements comply with the Charities Act 2011. STATEMENT OF TRUSTEE'S RESPONSIBILtrtES The assets of the Union and the Charity are held on Trust by Nautilus Trustees Limited, the Custodian TrLJStee of the Charity and the Managing Trustee is the Council of Nautilus Intemational, appointed in accordance with the Charity Commission's Schemes. The Directors of the Trustee Company are Henk L3féb￿, Lesley Mercer, James McAuslan and Stephen Clinch The current members of the Council of Nautilus International can be seen on page 2 of this report. Law applicable to charities in England and Wales requires the trustee to prepare financial statement for each financial year that give a tnje and lair view of the Charity's activities during the year and its financial position at the end of the year. In preparing those financial ststements, the trustee is required to.. > Select suitable accounting policies and then apply thern consistently > Observe the methods and principles in the Charitie5 SORP > Makejudgements and estimates that are reasonable and prudent > State whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements > Prepare the financial statement on the going concern basi5 unless It is inappropriate to presume that the charity will continue in operation AUD￿oR5 The auditors, HaysmacTntyre LLP are wlling to continue to act as auditors to the Nautilus Welfare Fund. Approved by and on behalf of the Council of Nautilits International on 1 2027 U Jurgens (Chairl A M Dickinson IGeneTal Secretary) 13 INDEPENDENT AUDITORS. REPORT TO THE TRUSTEE OF NAUTILUS WELFARE FUND FOR THE YEAR ENDED 31 DEceMBeR 2020 Opinion We have audited the financial statements of Nautilu5 Welfare Fund for the year ended 31 December 2020 which comprise nf thp ftatpmpnt of Financial Activities. the Charity Balance Sheet, th4 Cash Flow St3t8mont and notès to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 Ihe Financial Reporting Standard applicable in the UK and Republic of JTeland (United Kingdom Generally Accepted Accounting Prècticel. In our opinion, the financial statements- give a true and fair view of the state of the Charity's affairs as at 31 December 2020 and of the Charitys net movement in funds for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requirements ol the Charities Act 2011. Basis for opinion We have been appointed as auditor Ljnder section 144 of the Charitie5 Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing IUKI (ISAS IUK)l and applicable law Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section ol our report. We are independent of the Charity in accordance with the ethical requirements that ère relevant to our audit of the financial statements in the Ul including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concern In auditing the financial statements, we have concluded that the Trusiee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied. we have not rdentilied any material uncert3inti@s relating to events or conditions that, individually or collectively, may cast Significant doubt on the Charity's ability to continue as a going concem for a period of at least twelve months from when the financial staten7ents are authorised lor issue. Our responsibilities and the responsibilities of the Trustee with respect to going concern are described in the relevant sections ol this report. Other infom￿tion The Trustee is responsible for the other information. The other inforfflation comprises the information included in the Trustee's annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility 15 to read the other information and, in doing $0, consider whether the other information 15 materially inconsistent with the financial statements or our knowledge obtained in the audit Dr otherwise appÈar% ta hp matprially mis webslte at www.frc.or This d•scTlPtion forms part of our auditor's r•po Use ot our rèport This report Is made 501ely to the charity's trustee, a5 a body, in accordanct with section 144 of the Cliarities ALI 2011 411 regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustee those matters we are required to state to them in an Auditorfs report and for no other purpose. Yo the fullest extent perrnitted by law, we do not accept or assume responsibility to anyone other than the charity's tnJsÈee as a body for our atsdit work, for this report, or for the opinion5 we have formed. Haysmacintyre LLP Statutory Auditorts 29 April 2021 Haysmacintyre LLP is eligible to act as an auditor in temis of sertion 1212 of the Companies Act 2(K)6 10 Queen Street Place London EC4R 1AG 15 Nautilus Welfare Fund STATEMENT OF nNANaAL ACTIVITIPS FOR THE YEAR ENDED 31 DECEMBER2020 Unregtrictpd Funds R•strieted Funds Endowment Funds Total 2020 Total 2019 Notes INCOME.. Donations andlegacies Legacies Grants Gifts and donations 2,312 227,314 34.604 2,312 490,223 35,604 262,909 1,000 254,296 72,014 Incom8 from charitable acb'wties.. Care Home Mariners, Park Estate 1,362,576 I,(Y)9,899 1,361S76 1,009,899 1,229,724 1.017.750 Investment income Sale of Gibson House 157,903 157.903 256,422 455,039 Total Income 2,794,609 263,909 3.OS8,518 3,285,245 EXPENDtruRE Investmentmanagementcosts 48,606 48,606 48,238 Charitable Expenditure Accommodation for people living independently Accommodation for people requiring residential or nursing care Enabling retired merchant mariners and their dependants Developing services for older people and their dependants 859.227 1,0(N) 859,227 940.394 1,691,852 181,962 1,873,814 1,793,891 478,275 478,275 473,962 55.438 80.947 136,385 135,903 Totalcharitoble expenditure 3,083,792 263,909 3,347.701 3,344,150 Total Expenditure 3,132,398 263,909 3,396,307 3.392,388 Net lexpènditurel before galns and losses on investments 1337,7891 {337,7891 1107,1431 (Losses) / qains on investments 1266.1031 1266.1nii 686.870 Net lexpenditurel / Income 1603,8921 1603,8921 579,727 Transfets between funds Net Movement in Funds 1603,8921 1603.8921 579,727 Reconciliation of funds Fund balances brtsught forward 10 24,688,948 5.0(K) 24,693,948 24,114,221 Fund balances carried ft)rnard 10 24,085,056 5,000 24,090.056 24,693,948 The Charity had no recognised gains and losses other than thosè included above. All the above results are derived from continuing actimties. The notes numbered I to 10 form part of these accounts. 16 Nautilus Welfare Fund BALANCE SHEET AS AT31 DECEMBER 2020 2020 2019 Notes FIXED ASSETS Tangible assets Investfflents 15,227,198 8,379,376 15,529,393 8,696,776 23,606,574 24.226.169 CURRENT ASSETS Debtors Cash at bank and in hand 114,077 791,319 157,815 702,216 905,396 860,031 CREDITORS- amounts falling due within one year 1421,9141 1392.2531 NET CURRENT ASSETS 483,482 467,778 NET ASSETS 24,090,056 24,693,948 Represented by: Unrestricted funds Restricted funds Endowment 10 10 10 24,085,056 24,688,948 s,000 5,000 24,090,056 24,693,948 Approved by and authorised for issue by the Nautilus Intemational Council on U Jurgens (Chair) LLP• AM Dicknnson (General Secretary) The notes numbered 1 to 12 form part of these accounts. 17 Nautilus Welfare FuNd ASH FLQW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 2020 2019 Net cash provided by operatln9 activities 155,0981 209,382 Cash flows from inVes￿n9 activities Investment income Payment to acquire tangible fixed assets Payments to acquire investments Proceeds frorn sales ol investments Decrease/lincreasel in invest￿ent cash balances 157,903 163,2181 12,956,414) 1457,969 547,960 256,422 1314,2551 11,381,499) 1,381.394 14S2,8531 1510,7901 Increasé/lD¢¢re•sel in cash for the year 69.102 1301,4081 RECONCIUATION OF NET EXPENDITURE TO NET CASH USED IN OPERATING AcrnirtIES 2020 2019 Net income Depreciation Investment income Deduct.. Net investment Igainsl DeC￿aSe in debtors (Decrease) in C￿ditorS 1603,8921 365,415 1157,9031 267,884 43,738 29,660 S79,727 360,662 1256,4221 1682,9131 85,974 122.354 Net cash used in operatlng activitiés IS5,0981 209,382 ANALYSIS OF NET DEBT At 31 December 2019 At 31 December 2020 Cssh flow Cash at bank and in liand £70a21fj 89,102 791.318 18 Nautilus Wélfare Fund NOTES TO THE FINANCIAL 5TATEMENT5 YEAR ENDED 31 DECEMBER 2020 FORMAT OF THE ACCOUNrs The accounts comprise three principal statements supported by notes. These statements are.. Statement of Financial Attiviti¢s This analyses all capitsl and income resources and expenditure and shows all movernents in the Funds lor the year. 8alannal administration and compliance with constitutional and statutory requirements. Governance costs comprise direct costs for the Sta￿tOry and governance of the charity together with an allocation of support costs. Financial Instruments Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which a￿ held at fair value. Financial assets held at amortised cost comprise cash èt bank 8nd in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined a5 all cash held in bank accounts and used as working capitsl. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions. 21 JN in o Ln O Ln J c ONV Otr-m omc q)tr £ J Nautilus Welfare Fund NOTES TO THE FINANCIAL STATEMENTS Icontinuedl YEAR ENDED 31 DECEMBER 2020 3a CHARITABLE ACTivmES (continued) Support costs ar>d governance costs are allocated in accordance with the accountin9 policy stated in note 2. All grants awarded were to individual5. Expenditure borne by restricted fund was.. provision of accommodation for those people limng independently £1.00012019.. £4,451),. provision of accommodation for people ￿quiring residential or nursing care £203,18012019.. £92,540)., enabling retired merchant marirners and their dependants £nil 12019." £nill.' and developing services for older people and their dependents £74,27712019'. £86,4041. 2020 TOTAL 2019 TOTAL 3b. GOVERNANCE COSTS External auditors remuneration current year provision lexcluding VAT £22,620., 2019 £21,750) Membership and committee 27,144 26,100 8,481 27,144 34,581 2020 TOTAL 2019 TOTAL 3c. SUPPORT COSTS Stsff costs Other support costs overnance costs 160,493 211,597 27,144 163,857 256,438 34,581 399,234 420.295 23 Nautrlus Welfare Fund NQTE5 TQ THE FINANCIAL STATEMENT5 Icontinued) YEAR ENDED 31 DECEMBER 2020 INFORMATION REGARDING EMPLOYEES AND TRUSTEE 2020 2019 Wages and salaries Social security C05t5 Pension costs Agency staff costs 1.505,347 118,349 98,835 286,207 1,423,065 114,596 93,518 245,922 2,008.738 1,877,102 No employees earned £60,1X)O p.a. or more12019'. nill. The Trustee was not paid during the year12019 £Nill and was not reimbursed any expenses12019 £Nill. The Key Management Personnel relates to 5 staff whose total remuneration was £179,13712019'. £187,525). The Company operated a defined contribution pension scheme during the year. The average number of employees, full tiine and part time together, was Charitable activities 88 86 GIiANTS FROM &XTERNAL ORGANISATIONS Seafarers UK- Aged Veteran Funds Seafarers UK- Merchant Navy Fund sea1a￿rs Hospital Society Sea*a￿r$ UK- Case worfcer service & care home Seafarèrs UK- Covid-19 Shipwrecked Mariners Society MNWB Trinity House Wirral Borough Council Coronavirus Job retention scheme Other 9,069 14,000 6,180 171,508 118,425 6,670 5,000 83.000 42,882 31.264 2,225 29,125 14,000 18,540 117.280 70,400 4,951 490,223 £254,296 Of the above total £262.909 was rqstrictgd 12019.. E171,0361 TANGIBLE FIXED ASS￿5 Freehold land and Buildings Motor Vehicles Equipment Total Cost At 1st January 2020 Additions 16.937,341 30,791 510,818 32,427 14,312 17,461471 63.218 At 31st December 2020 16,968,132 543,246 14,312 17.525.690 Depreciation At 1st Janijary ?n?n Charge lor the year 1.64&217 317,256 270.548 48,159 14312 1,93a,077 365,415 At 37st December 2020 1.965,473 318,707 14,312 a298,492 Net book value At 315t December 2020 15,002,659 224,539 15,227,198 At 31st December 2019 15,289,124 240,270 15,529,394 Capitsl commltmènts There were no capital commitments at year end or in the prior year. The net book value at 31 December represents Fixed Assets used for direct charitable purposes. The analysis between the Funds is as shown in note 10. 24 Nautllus Welfare Fund NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDEO JI DECEMBER 2020 FIXED ASSEf INVESTMEwrs al Tilney is responsible for the day-to-day management of the Charitls investments. A nominee company, Pershing Securities Limited, Is responsible for the custody ol the related documents of title. bl The c05t of fund raising li.e. investment rnanagement charges) was £48,60612019." £48,238) c) The following is a skjmmary of the investments for all the Funds and the income therefrom. CAPITAL Market value Market value asat31 1220 asat31 1219 INCOME 2020 2019 Investment5 listed on recognised UK Stock Exchanges Investment cash 8,375,504 3.872 8,144.032 552,743 1S6,065 252.453 8.379,376 8,696,775 156,065 252.453 dl Movement in market value of investments Market value at 1st January Less.. Proceeds of disposals Add.. Acquisitions IDecreasel/ increase in the investrnent cash balance Net1105sesl/gains on revaluation at 31 December 8,696,T15 12,457,969) 2.956,414 1547,9601 1267.8841 7.560,904 {7,381,3941 1,381,499 451853 681913 Market value at 315t December 8,379,376 8.696,775 Histori all fuiids IidVE beeli spent in ihe year. 27 Nautilus Welfare Fund NOTES TO THE FINANCIAL STATEMENTS {continued) YEAR eNDtD 31 DECEMBER RQ20 11. ANALYSIS OF ASSETS BETWEEN FUNDS Tangiknle fixed assets Net current A55ets Total 2020 Total 2019 Investments Unrestricted funds DeS￿nated Free Restricted funds Endowed funds 15,227,198 8,379,376 23,606,574 478,482 24.226,169 462,779 478,482 5,000 s,￿0 S,(X)O 15.227,198 8,379.376 483.482 24,090,056 24,693,948 ANALYSIS OF NET ASSETS BETWEEN FUNDS- Prior year comparative Tangiblè fixed assets Net turrent Assets Total 2019 Totsl 2018 Investments Unrest¥icted funds Designated Freé Restricted funds Endowed funds 15.529,393 8.696,776 24.226,169 462,779 23,136,707 972.514 462,779 s,000 5,000 5,000 15,529.393 8,696,776 467,779 24.693,948 24,114,221 Included within tsngible fixed assets is an element of land which must be retained for housing accommodation under the terms of the Scheme. Tliis 15 rioi ioi)sidvivd Lv b¥ d iiTrdlElldl rE5triction given that the prov15ion of hou51ng accommodation is one ol the core objects of the charity. 12. RELATED PARTY TRANSAcfioNS At 31 December 2020 £11,44712019.. £10,938) was owed by Nautilus International. the trade union under tommon control by Nautilus International Council. Nautilus International provided support and administration services to Nautilus Welfare Fund amounting to £113,500 {2019'. £113,500). A donation of £S.00012019.. £nill was received from Nautilus Int@rnxtinnxl A donation was received from Oceanair SeNces Limited in the prior year totalling £20,00012020'. £nill a company under the control of N$utilu3 International. Nautilu5 Council made donation5 111 tlie piioi- year £1,137 12020. £iiill. Ocean6ir Services Limited provided building services for the construction ol the building projects at Mariners Park totalling £30,79112019: £1,745,477). In the year £299.002 of grant income was received from Seafarers UK 2019.. £160,405) A member of Nautilus International Council the trustee is also a trustee of Seafarers UK. 28