OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-10-31-accounts

Annual Report and

Audited Financial Statements

For the year ended 31 October 2023

Royal National Mission to Deep Sea Mazars LLP, South
Fishermen West
(A Company limited by guarantee) 5thFloor, Merck House
Company Registration Number 24477 Seldown Lane
England & Wales Charity Registration Poole
Number 232822 Dorset
Scotland Charity Registered Number SC039088 BH15 1TW

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

CONTENTS Pages
Council Members and Advisers 2
Annual Report (incorporating the Strategic Report) 3-15
Report of the Independent Auditors 16-19
Statement of Financial Activities 20-21
Balance Sheet 22
Cash Flow Statement 23
Notes to the Financial Statements 24-39

1

Royal National Mission to Deep Sea Fishermen

Trustees who served during the year (The Council of Management)

Mr Michael Vlasto OBE

Mr Ian Gatt Rear Admiral Sir Jeremy de Halpert KCVO Mr Nathan de Rozarieux Reverend Derath Durkin Mr Trevor James The Very Reverend Dr David Lacy DL Mr Thomas Maier Mrs Kate Pound Mr Mark Stubbings (appointed 18 April 2023) Mrs Wilma Goodlad (appointed 18 April 2023) Mrs Alicia Moyles (appointed 18 April 2023) Ms Deanne Thomas (appointed 18 April 2023) Mr Mark Greet (appointed 18 April 2023) Mrs Elspeth MacDonald (appointed 1 October 2023) Mr Jack Gatacre (appointed 11 October 2023) Dr Jonathan Shepherd (retired 1 April 2023)

Chair of the Council of Management Deputy Chair

Secretary and Registered Office

Captain Marc Evans Royal Navy (Ret’d) Mather House 4400 Parkway Solent Business Park Fareham Hants PO15 7FJ

Solicitors

Wannops LLP incorporating Brutton & Co 227 West Street Fareham Hampshire PO16 0HA

Executives

Captain Marc Evans Royal Navy (Ret’d) Chief Executive

Mrs Alison Godfrey Director of Business Development

Burness Paull Union Plaza 1 Union Wynd Aberdeen AB10 1DQ

Warner Goodman LLP 8 College Place Southampton SO15 2FF

Bankers

Lloyds TSB Bank Plc Large Corporate 3 Town Quay Southampton SO14 2AQ

Investment Advisers

Womble Bond Dickinson One Trinity Broad Chare Newcastle Upon Tyne NE1 2HF

Registered Auditors Mazars LLP, South West 5[th] Floor, Merck House Seldown Lane Poole Dorset BH15 1TW

Investment Managers Sarasin & Partners Juxon House 100 St Pauls Churchyard London EX4M 8BU

2

Royal National Mission to Deep Sea Fishermen

ANNUAL REPORT BY THE COUNCIL OF MANAGEMENT

INTRODUCTION

The Trustees of the Royal National Mission to Deep Sea Fishermen, who also act as Directors of the Fishermen’s Mission for the purpose of the Companies Act, form a collective governing body known as the Council of Management, hereafter referred to as ‘Council’.

Council presents its annual report and the audited financial statements for the year ended 31 October 2023.

Council confirms that the annual report and financial statements comply with the governing document, the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2015), the Companies Act 2006 and relevant law and United Kingdom Accounting Standards.

GOVERNANCE

The Royal National Mission to Deep Sea Fishermen (working name, the Fishermen’s Mission), is a Company Limited by Guarantee No. 00024477 and registered with the Charity Commission for England and Wales (No. 232822) and the Office of the Scottish Charity Regulator (No. SC039088). It is governed by a Memorandum and Articles of Association.

Under the Memorandum and Articles of Association, Council should have no more than fifteen, in number, Trustees appointed from membership of the Fishermen’s Mission Association[1] .

Council normally meets in full session four times each year with concurrent business being conducted by three sub-committees: Finance & Resources; Internal Audit and Nominating & Executive Remuneration.

Separately, the Executive consists of the Chief Executive and the Director of Business Development who together conduct the routine management of the Fishermen’s Mission, supported by the Senior Management Team.

THE CHARITABLE OBJECTIVE OF THE FISHERMEN’S MISSION

The Fishermen’s Mission maintains a Christian presence in fishing communities around the British Isles through which to provide practical (including financial and healthcare), welfare, pastoral and spiritual support to active and former fishermen and their families.

VALUES

The Fishermen’s Mission’s values are founded on our ecumenical Christian faith and our commitment to provide practical help that makes a positive difference in people’s lives; making tangible improvements to the lived experience of those we support.

The Fishermen’s Mission’s focus is on the people in need of the practical assistance and support we provide.

The Fishermen’s Mission’s work reflects the things that matter to us and which we care about:

1 Council membership has temporarily increased to sixteen as new Trustees have been recruited and inducted into full memberships prior to planned retirements of other Trustees at the AGM scheduled for April 2024.

3

Royal National Mission to Deep Sea Fishermen

The Fishermen’s Mission’s values align closely with the Nolan Principles of conduct in public life and the NCVO Charity Ethical Principles.

FUNDAMENTAL TASKS

STRATEGIC REPORT

Council’s Strategy is captured in six core delivery and three supporting Strategic Objectives which are reviewed annually.

In May 2022 the review for the operating year 1 November 2022 to 31 October 2023 was conducted by Council with the newly appointed Chief Executive, who had assumed that role on 1 April 2022. Once agreed, the objectives were shared with staff at the annual conference in June 2022 to aid staff understanding of Council’s priorities and provide a clear line of sight from the strategic level through the operational level to the tactical delivery by those working at the quayside; the front line of the Fishermen’s Mission’s operations. The Strategic Objectives were formally approved by Council in October 2022 and issued as a formal policy statement.

The following review in May 2023, did not demand any significant changes to the current or future operating periods. Council decided on continuing progress along each line of activity and was provided with an Executive led assessment of progress at each full Council meeting. This led to an end-of-year conclusion that good progress had been made across eight of the nine objectives but that more work was needed to move forward the new and challenging environmental objective, which will receive specific attention from the Chief Executive and the individual Trustees championing environmental position during the course of the next operating year.

4

Royal National Mission to Deep Sea Fishermen

The Strategic Objectives are summarised as follows:

SEAFIT

SEAFIT is our frontline response to a dynamic demand for support of the health and wellbeing of those in our communities right around the UK. SEAFIT marked its fifth anniversary during this operating year. A joint initiative between the Fishermen’s Mission and the Seafarers Hospital Society, SEAFIT has gone from being a limited programme during its first 3 years to being one of the principle delivery vehicles for what we do at the front line on the quayside.

With more events than in any previous year, 2022/2023 has been the busiest year in the 5- year history of SEAFIT (2021/2022 figures provided for comparison):

We know that we are saving lives: A seemingly fit and healthy 40-year-old fishermen attended a quayside event in Scarborough. Initial checks showed him to be a great health with an ideal Body Mass Index, 20/20 vision, and no long-term health conditions. However, he showed signs and readings of very high blood pressure. He was referred to a GP immediately, was seen straight away and given urgent medication. His blood pressure did not drop, and the GP sent him to A&E. He was in immediate risk of heart attack and stroke due to high blood pressure but is now under the care of his GP and his condition supported with medication.

In terms of the health and physical wellbeing of fishermen, this year has been dominated by the deadline at the end of November 2023 for them to obtain seafarers’ medical fitness

5

Royal National Mission to Deep Sea Fishermen

certificates to work at sea.

SEAFIT and the Fishermen’s Mission have acted as a conduit of information for fishermen; a voice highlighting the health and welfare concerns of fishermen to the regulatory authorities but perhaps most importantly, as an enabler, connecting 465 fishermen with those permitted to, and with the capacity to, undertake medical assessments of fishermen at a time when many local community general practitioners did not have the ability to take on additional tasks.

Interest is growing from within the NHS. As a result of SEAFIT, the Fishermen’s Mission has been invited to join a panel that supports the NHS Core20PLUS5 initiative; an NHS England approach to support the reduction of health inequalities at national and system level by defining a target population cohort and identifying five clinical areas requiring accelerated improvement.

Growing recognition within the healthcare sector has resulted in the Fishermen’s Mission and Seafarers Hospital Society (as ‘SEAFIT’) being invited to participate in the annual NHS Confederation Exposition in Manchester, one of the biggest and most significant healthcare conferences in the UK attracting around 5,000 people over two days. The event allowed both Chief Executives to explain SEAFIT and the issues we seek to address to a large audience of like-minded healthcare professionals.

From humble beginnings, SEAFIT has grown in recognition. In 2022 it was shortlisted for awards but in 2023 it went further and won the Innovation of the Year category at the Fishing News Awards 2023 (industry recognition) and the Healthcare category at the Charity Awards 2023 (national charity sector recognition).

As the year came to its end, SEAFIT was notified that it had been shortlisted as a finalist by the Health Services Journal in its 2024 Awards (health sector recognition).

The recognition of SEAFIT is aligning well with our intent to highlight how the charity sector is plugging the gap between what the public sector (local authorities and the NHS) should be providing and what is being offered to under-represented and disadvantaged communities such as the fishermen and their families.

While the focus of the Fishermen’s Mission’s work, and SEAFIT activity in particular, is strictly UK based; our activity has attracted international recognition, notably from the New York Center for Agricultural Medicine and Health, and by association the Northeast Center for Occupational Health and Safety in New York State who have jointly invited us to share our experiences as they develop similar support networks for US based fishing communities. Through this connection the International Fishing Industry Safety & Health (IFISH) Conference invited us to present to their delegates in January 2024.

As SEAFIT celebrated its fifth anniversary, it was timely to conduct a quinquennial review of the activity supported by or delivered by our partners. The stand-out comments came from the public sector providers who advised that without SEAFIT resourcing support to the fishing community, they would be unable to extend their support to this area. In short, SEAFIT is the difference between the fishing community being able to access some frontline health services or not.

Equity, Equality, Diversity and Inclusivity (EEDI) Objectives

The Fishermen’s Mission is an equal opportunity organisation. It is committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, gender, sexual orientation, or disability and will make reasonable

6

Royal National Mission to Deep Sea Fishermen

adjustments to meet the needs of staff who are or become disabled. In 2022/2023 the Fishermen’s Mission became a Disability Confident employer.

Objectives set by Council for 2022/2023 have been fully implemented by the Executive team. These include Council undertaking external training and consultation to increase and update their knowledge, skills and understanding. An in-depth face to face training afternoon for all staff was held at the Annual Training Conference and a full review of the strategy and policies connected with EEDI has been carried out. Council has made a firm commitment to continue to prioritise this area of work and to strive towards continued diversity within the Board and the Fishermen’s Mission.

Councils’ Statement and Equity, Equality, Diversity and Inclusion (EEDI) Objectives 2023/2024:

Council has agreed the following EEDI objectives for 2023/2024

2022/2023 IMPACT

The Fishermen’s Mission remains the only national charity dedicated to the support of fishermen and their families. Everything we do is funded by our donors; we do not receive any government or lottery funding and so it is particularly pleasing to see that during the course of this operating year, the Fishermen’s Mission has expended an increased amount, some £2.75M (an increase of £540K on the previous year) on activities that directly support the delivery of our charitable objects.

7

Royal National Mission to Deep Sea Fishermen

We have recorded over 22,386 (up from 21,000 in 2021/2022) direct client interactions, of which 20,277 were welfare specific (2021/2022: 17,300). Additionally, we have assisted some 3,727 clients, distributing some 971 one off grants totalling over £413,000.

Our staff have responded to (or were ready to respond to) around 45 emergency incidents at sea during the year.

As in recent years, the Fishermen’s Mission has provided considerable support to migrant crew working in the UK especially in Scotland and Northern Ireland, working harmoniously with other agencies and charities where necessary and appropriate for the maximum benefit of those in need of our support.

PUBLIC BENEFIT

Council has referred to the guidance published by the Charity Commission in reviewing the Fishermen’s Mission’s aims and objectives and in planning future activities and is satisfied that, as is evidenced by the information given in this report, that its activities are clearly for the public benefit.

FINANCIAL RISK MANAGEMENT

In accordance with SORP 2015, key financial risks have been identified and measures undertaken to mitigate them. All risks are recorded in a Council endorsed Risk Register, which is subject to regular reviews by the Senior Management Team. Council reviews all significant risks at each Council meeting. The Council’s leading financial risks were:

In both instances Council would, as a short term emergency measure, meet the shortfall by use of reserves which provide the financial resilience that would enable the Fishermen’s Mission to operate at current levels for at least two years

FUNDRAISING

The Fishermen’s Mission is registered with the Fundraising Regulator and works within the Code of Fundraising Practice and the Chartered Institute of Fundraising’s guidance. During the period of this report no complaints were received regarding any fundraising appeals or practices.

Reflecting the valuing and care for our donors and supporters, the Fishermen’s Mission neither purchases names nor addresses for fundraising purposes nor sells any information that it holds and only contacts those people who have purchased goods through our website, donated or offered support. No third parties are employed by the Fishermen’s Mission to undertake fundraising on their behalf, although a small group of volunteers assist at fundraising events and with collection box distribution. All fundraising and marketing were carried out within the compliance framework of the Data Protection Act 2018.

8

Royal National Mission to Deep Sea Fishermen

The cost-of-living crisis, along with most charities, has affected income levels. Loyal supporters helped to maintain income levels. There has been an increase in the number of regular donors and income through online platforms. A pilot for the use of contactless giving machines has been encouraging and these have now been rolled out across the organisation. The introduction of a new website with an online shop selling new lines of merchandise has been successful.

The fundraising team continue to be imaginative and innovative in seeking to maintain income levels wherever possible and this has resulted in some new initiatives and a greater sense of team working across the whole organisation.

The Fishermen’s Mission recognises both the demanding work and commitment of all the staff team in raising this income alongside a deep gratitude for the generosity of supporters and donors throughout the UK.

Fundraising Team Development

The fundraising team and port staff have worked extremely hard together this year and successfully achieved the income targets. Despite this it was clear that some of donors found it a struggle to continue their donations. New initiatives have included a partnership to develop support from fishmongers, partnering with The National Federation of Fishmongers, the introduction of challenge events and a strong campaign to introduce greater income through the Gift Aid scheme. Donors and supporters remain the very lifeblood of the Fishermen’s Mission.

Fundraising from Trusts, Grant Making Foundations & Partners

Partnerships with grant making trusts and foundations remained key to the Fishermen’s Mission overall income and this was particularly true of the continued, long-term funding relationships within the maritime sector, including The Seafarers’ Charity, Trinity House, Fishmongers’ Company, the Merchant Navy Welfare Board and Grimsby Sailors & Fishing Charity.

Outside the sector, key support was received from a sound base of grant making foundations and partners including the Thomas J Horne Memorial Trust, The Margot and Andrew Tennant Charitable Trust, Garfield Weston Foundation, and the Pemberton-Barnes Trust. Trusts and foundations are at the centre of the Fishermen’s Mission’s ability to deliver core services, broaden its work and develop new service provision.

Digital and Social Media

A new website was created and delivered. This has increased the traffic to the site. The pages that are relevant to our clients have been the most visited which indicates that the website is being used by both supporters and those who need our assistance. Income from the site is consistent with expectations. A new Marketing and Communications Manager was appointed in the early summer.

Supporters of the Fishermen’s Mission

The Fishermen’s Mission is proud to be supported by so many loyal friends from around the UK and beyond. It is a privilege to receive help and friendship from the Fishermen’s Mission’s supporters. The Fishermen’s Mission values each call, email, letter and gift that is received as well as being deeply grateful for those who pray each week for the Fishermen’s Mission’s work and staff using the Prayer Calendar. It is recognised that giving is a very personal decision

9

Royal National Mission to Deep Sea Fishermen

and the Fishermen’s Mission is proud that so many people choose to support its work and recognises the vital support that donors and volunteers bring to the Fishermen’s Mission.

Legacy Income

Revenue from legacies remains key to the Fishermen’s Mission’s overall income. It underpins service provision but also helps to resource essential development work. Income from legacies during 2021/2022 was notably lower than in previous years and below the budgeted target. This was in part a result of the prevailing economic climate, but also a result of an administrative backlog at the HM Courts & Tribunals Service (HMCTS) probate service. Improvements in this service in 2022/2023 means that income held back last year has filtered through with a steady flow of legacy income throughout the year and the year ended over budget. Council is pleased to note that legacy notifications have remained stable, and a development and marketing strategy is in place.

THE FISHERMEN’S MISSION FINANCES

Overall Results

To meet the requirement of Section 28 of the FRS 102, the Retirement Benefit Pensions Scheme fund income and expenditure are shown within the Fishermen’s Mission’s accounts.

The Fishermen’s Mission Reserves

Reserves Policy:

In October 2022 Council reviewed and reissued their Investment Policy Statement, with some minor changes to the overall strategy for the reserves. To reflect their general judgements, Council maintains financial reserves to achieve four key objectives:

Investments

Sarasin & Partners LLP are appointed as the Fishermen’s Mission’s Investment Managers.

Over the period, performance has met the benchmark criteria set by Council and has remained competitive with providers of similar investment vehicles.

Ethical Exclusions

Council has set clear exclusions for the Fishermen’s Mission’s investments:

10

Royal National Mission to Deep Sea Fishermen

landmines which are excluded from all portfolios, as are other activities that are subject to global sanctions)

The Fishermen’s Mission’s investments with Sarasins are in a pooled or commingled fund which we regularly review to assure ourselves that our ethical exclusions are not compromised (a recognised risk with investments in commingled funds). Council is however reassured that the Sarasin Charity Authorised Investment Funds (CAIFs) meet our ethical exclusions and also avoid investments in companies that generate significant revenues from:

Stewardship Approach (Source: Sarasin & Partners)

In addition to the exclusionary policy Sarasin & Partners act as stewards of the Fishermen’s Mission’s assets, a mind-set that is guided by a commitment to think like owners of the companies in which the Fishermen’s Mission invests, rather than simply holders of the shares. On behalf of the Fishermen’s Mission, Sarasin and Partners takes an active and responsible approach to investment with the principles of stewardship being embedded at the heart of their investment process.

The analysis of environmental, social and governance (ESG) factors forms an integral part of the consideration for every investment decision. Council strongly believes that this analysis must be conducted by Sarasin’s equity and fixed income teams as any material risks and opportunities from ESG issues will influence the valuation of each company. Sarasin also has specialist stewardship analysts within the team, who advise on company engagements and lead the company’s policy outreach work.

Sarasin scores each potential investment separately on the environmental, social and governance factors and then builds an overall ESG score with a range from A to E (where A is exemplary, and E is un-investable), which then feeds into the valuation methodology of each company.

Sarasin and Partners make an annual submission of their Stewardship Report to the Financial Reporting Council (FRC), in 2023 they succeeded again in passing the UK Stewardship Code test details of this submission can be found on Sarasin’s website.

They also make a submission to the UN Principles for Responsible Investment; this is also available to view on the Sarasin website: https://sarasinandpartners.com/stewardship/

Investment Performance (Source: Sarasin & Partners)

For the 12 months to 31[st] October 2023, the Fishermen’s Mission investment portfolio generated a total return of +3.8% which was behind the long-term objective (inflation (UK CPI) +4%) of 10.9% and slightly behind the index benchmark of +4.2%, but ahead of the peer group return (ARC Steady Growth Charity Index) of 1.5%.

This has been a particularly volatile period for markets, economies and politics – the UK has navigated the aftermath of the Truss-Kwarteng mini-budget which triggered panic in bond markets, several high-profile bank failures in the US and Europe, rising global government debt levels, and a worrying escalation of global armed conflicts.

11

Royal National Mission to Deep Sea Fishermen

The portfolio’s outperformance against its charity peer group has been supported by the strategic changes that Sarasin have made to the portfolio. Since 2018 the bond allocation has been reduced and the equity allocation has moved away from making a separate UK and a global allocation (ex UK) to an integrated global approach including the UK market. This has removed the UK equity bias from the portfolio construction. The natural Sterling weight has consequently been reduced from 75% to now c40%. The most recent change was made in June 2023, a well-timed reduction in UK equities and GBP, with the UK market underperforming its global peers since then.

Performance relative to the benchmark was held back by asset allocation, where Sarasin was slightly more defensive during the year and allocated less to equities, which performed remarkably well in light of the impact of generative Artificial Intelligence (AI), resilient corporate earnings, and a shifting sentiment around the trajectory of inflation and interest rates. The alternatives allocation unfortunately saw a decline, which has historically contributed a positive return and supported performance in the prior year when equities and bonds fell. This was largely due to falls in the share prices of listed investment trusts, particularly infrastructure investments. However, the underlying values of these infrastructure assets not only remain stable but also appreciated over the year, so we would expect their share prices to recover as macroeconomic conditions improve.

Since inception (13[th] September 2016) the Fishermen’s Mission portfolio has generated an annualised net return of 5.4%, this is ahead of the initial projected 5–7-year return that Sarasin’s presented to Council in 2016 of 5.2%.

Income

The Net Movement in Funds for the year was an outflow of £673,997 (2021/2022: £2,281,138 outflow). This outflow was a direct result of a planned increase in charitable expenditure. The release of £612,908 previously designated for the buyout of the Fishermen Mission's closed Retirement Benefit Scheme resulted in the Fishermen Mission's free reserves at 31 October 2023 standing at £5,375,657.

Free reserves available for use by the Fishermen’s Mission are those unrestricted funds that are readily realisable. These include Business Development funds that are used to resource new initiatives. Free reserves exclude those funds which are restricted or designated for specific purposes These include the equivalent of 2 years resource to cover costs for operations as stated in the Fishermen’s Mission reserve policy (Business Continuity Reserves).

The calculation excludes funds invested in property and other fixed assets that will continue to be used in the day to day running of the Fishermen’s Mission.

Donations and gifts totalled £1,505,162, a decrease of £4,628 on the 2021/2022 figure. The legacies received were £1,009,096 which was above the budget for the year.

Expenditure

Further lifting of Covid-19 restrictions and development of the Fishermen’s Mission's activities led to an increase in charitable expenditure to £2,749,563 (2021/2022: £2,214,784). As at 31 October 2023 staff numbered 68 (2021/2022: 67)

12

Royal National Mission to Deep Sea Fishermen

Retirement Benefit Pension Scheme

Broadstone continued to act as the administrator of the Retirement Benefits Scheme (RBS) until May 2023 when the administrative responsibilities were transferred, in full, to Legal and General Assurance Society (LGAS), who had previously acted solely as the pension Fund Manager.

The process of winding up the current RBS and complete the transfer of all elements of the scheme management to Legal & General continued throughout the operating period although the forecast that all matters would be concluded by year-end was not achieved.

Notice, under section 27 of the Trustee Act 1925, that the Trustees of the Royal National Mission to Deep Sea Fishermen RBS (RBS Trustees) intended to distribute the assets of the Scheme in accordance with the Scheme's governing documentation was widely promulgated in September 2023 with:

Between Broadstone and Legal and General, and in full consultation with the RBS Trustees, a final Rolled Forward Adjustment Amount was calculated by Legal & General and agreed by all parties. A ‘full & final payment’ of £219,842, the agreed final sum owed by the Fishermen’s Mission to LGAS, was paid in September 2023.

In approving this full and final payment to LGAS, the RBS Trustees approved the action to formally trigger the winding-up process of the RBS. Follow on timings are now much clearer and it is fully expected that the final audited accounts will be approved in early March 2024 with the RBS wound up fully, and to the entire satisfaction of all stakeholders, by the end of March 2024.

Throughout the process, The Pension Regulator has been kept apprised of progress and is content with the progress and actions to date.

While this process has taken longer than has been previously forecast; we have been subject to timings of activities out with our control. The Fishermen’s Mission has sought to expedite the process but has remained cognizant of the absolute necessity to ‘do this properly’ and not allow any corners to be cut nor any issues to remain unaddressed. The RBS Trustees and Council are both confident and comfortable with the activity undertaken and the progress to date.

The continuing cost of professional services (actuarial, legal and financial) and the final sum payable to Legal and General to complete the winding up were anticipated by Council when the project to wind up the RBS commenced in 2020. These were additional costs to be included in the budget for the financial year 2022/2023 and were an important factor in the overall operating deficit.

13

Royal National Mission to Deep Sea Fishermen

As we calculate the ratio of our overall expenditure against charitable output, we have necessarily taken these costs into account to avoid negatively biasing that ratio.

The FRS 102 valuation on 31 October 2023 saw the scheme’s deficit remain at £0.00.

MEMBERS OF COUNCIL

Council membership (the list of Trustees) during the year was as shown on page 2.

In accordance with the provisions of the Company’s Articles of Association, Mr Ian Gatt, Sir Jeremy de Halpert and Mr Michael Vlasto retired by rotation at the Annual General Meeting in April 2023 and were re-elected.

One Trustee, Dr Jonathan Shepherd, retired permanently during the year (effective from the AGM in April 2023).

We employed Thewlis-Graham, an executive search and selection consultancy based in London specialising in the recruitment of Board and Senior Executive personnel in the NotFor-Profit and commercial sectors to assist our recruitment of new Trustees.

A rigorous advertising, third party assessment and initial selection process generated a number of candidates for Council-led interviews during the period January to March 2023 leading to the successful appointment of six new Trustees.

In planning for the future, in October Council temporarily exceeded the maximum number of Trustees (15) permitted by the governing document by one in anticipation of the known retirements of Trustees at the AGM in 2024. The Charity Commission was notified, there is no effect on the governance of the Fishermen’s Mission and a formal record of this departure from the governing document has been retained in the Head Office.

RESPONSIBILITIES OF THE MEMBERS OF THE COUNCIL OF MANAGEMENT

In keeping with company law, Council is responsible for preparing the Annual Report and prepare financial statements for each financial year. Council members must not approve the financial statements unless each Trustee is satisfied that they give a true and fair view of the situation 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, Council is required to:

Council is 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.

14

Royal National Mission to Deep Sea Fishermen

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who is a Trustee at the time when this Annual Report is approved confirms that:

AUDITORS

A comprehensive tendering process was conducted by Trustees in late 2022. Following downselection and a detailed comparison of the tenders received, Mazars LLP were again appointed by the Members for the 2022/2023 and two subsequent annual audits of accounts.

In accordance with section 487 of the Companies Act 2006, a resolution proposing that Mazars LLP be reappointed as auditors of the charitable company for Financial Year 2022/2023 was put to the Annual General Meeting in April 2023 and passed.

Council approves the Annual Report and, in their capacity as Trustees and company directors, approve the Strategic Report incorporated therein.

Signed on behalf of the Council.

BY ORDER OF THE COUNCIL OF MANAGEMENT

15

Royal National Mission to Deep Sea Fishermen

Independent auditor’s report to the members of the Royal National Mission to Deep Sea Fishermen

Opinion

We have audited the financial statements of the Royal National Mission to Deep Sea Fishermen (the ‘charity’) for the year ended 31 October 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 “Auditor’s responsibilities for the audit of the financial statements” section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

16

Royal National Mission to Deep Sea Fishermen

Other information

The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. 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.

Opinions 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 light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or Directors’ Report included within the Trustees’ Annual Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Accounts (Scotland) Regulations 2006 requires 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

17

Royal National Mission to Deep Sea Fishermen

the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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.

Based on our understanding of the charity and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, data protection regulations.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.

In addition, we evaluated the Trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to

18

Royal National Mission to Deep Sea Fishermen

manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the cut-off assertion) and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

Use of the audit report

This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Jonathan Marchant (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor 5[th] Floor, Merck House Seldown Lane Poole Dorset BH15 1TW

Date Feb 28, 2024

19

Royal National Mission to Deep Sea Fishermen

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating the income and expenditure account) For the year ended 31

October 2023

Notes
INCOMING RESOURCES -
Incoming resources from
generating funds:
Voluntary Income: Donations
& Gifts
Legacies
Investment Income
2
Incoming resources from
charitable activities
Charity Shop
Other incoming resources
Net realised gain on sale of
fixed assets
Rental Income
TOTAL INCOMING
RESOURCES
RESOURCES EXPENDED
3
Less: Costs of generating
funds
Fundraising
Admin Costs
Charitable activities
Charitable expenditure
TOTAL RESOURCES
EXPENDED
NET
(OUTGOING)/INCOMING
RESOURCES BEFORE
OTHER GAINS AND
LOSSES
OTHER RECOGNISED
GAINS AND LOSSES
Unrealised (loss)/gain on
investment assets & transfer
Actuarial gain on defined
pension scheme
10/16
NET MOVEMENT IN FUND		 Unrestricted Funds
2023
£
Restricted Funds
2023
£
Total Funds 2023
£
Total
Funds 2022
£
RESTATED
1,089,503
415,659
1,505,162
1,509,790
888,915
120,181
1,009,096
265,803
300,000
0
300,000
300,000
129,250
0
129,250
115,289
2,838
0
2,838
110,360
48,763
0
48,763
47,871
2,459,269
535,840
2,995,109
2,349,113
283,405
689,467
26,843
310,248
689,467
380,314
689,469
2,264,780
484,783
2,749,563
2,214,784
3,237,652
511,626
3,749,278
3,284,567
(778,383)
24,214
(754,169)
(935,454)
30,172
0
30,172
(1,489,684)
50,000
0
50,000
144,000
(698,211)
24,214
(673,997)
(2,281,138)

20

Royal National Mission to Deep Sea Fishermen

RECONCILIATION OF
FUNDS
Balance brought forward on
1 November 2022
10
Balance carried forward on
31 October 2023
10		 12,801,479
249,572
13,051,051
15,332,189
12,103,268
273,786
12,377,054
13,051,051

All activities relate to continuing operations. The SOFA includes all gains and losses recognised in the year.

21

Royal National Mission to Deep Sea Fishermen

BALANCE SHEET AS AT 31 OCTOBER 2023

Notes
FIXED ASSETS
Investments Shares - General
6
Investments – George Watts Fund
6
Tangible Assets
7
CURRENT ASSETS
Debtors
8
Cash at bank and in hand
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
9
NET CURRENT ASSETS
NET ASSETS BEFORE PENSION
LIABILITY
Defined benefit pension scheme
liability
16
NET ASSETS AFTER PENSION
LIABILITY
12
FUNDS OF THE CHARITY
Restricted funds
11
Designated funds
10/12
Free reserves
•
Pension deficit
16
•
General fund
10/12
TOTAL CHARITY FUNDS		 2023
2022
£
£
9,699,655
10,306,170
684,463
677,115
1,523,060
1,562,721
11,907,178
12,546,006
191,236
118,216
420,563
479,035
611,799
597,251
(141,923)
(92,206)
469,876
505,045
12,377,054
13,051,051
0
0
12,377,054
13,051,051
273,786
249,572
6,785,371
7,437,635
7,059,157
7,687,207
0
0
5,317,897
5,363,844
5,317,897
5,363,844
12,377,054
13,051,051

The financial statements on pages 20 to 39 were approved by the Members of the Council of Management on 7 February 2024 and were signed on its behalf by:

22

Royal National Mission to Deep Sea Fishermen

CASH FLOW STATEMENT

For the year ended 31 October 2023

Notes
Cash flows from operating activities:
18a
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Interest received
Interest paid
Dividends received from investments (gross)
Purchase of tangible fixed assets
Sale of tangible fixed assets
Sale of investments
Realised profit on investment/increase in cash
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents on 31 October 2022
Cash and cash equivalents on 31 October 2023		 2023
2022
£
£
(928,989) (1,042,100)
(928,989)
(1,042,100)
0
0
(1,062)
(10,046)
300,000
300,000
(61,360)
(116,836)
3,600
188,367
720,918
400,000
(91,579)
0
870,517
761,485
(58,472)
(280,615)
479,035
759,650
420,563
479,035

23

Royal National Mission to Deep Sea Fishermen

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 October 2023

1. ACCOUNTING POLICIES

The Royal National Mission to Deep Sea Fishermen (the Fishermen’s Mission), a company limited by guarantee is incorporated in the United Kingdom and is registered No. 00024477, is registered with the Charity Commissioners (No. 232822) and the Office of the Scottish Charity Regulator (No SC039088). The registered office is Mather House, 4400 Parkway, Solent Business Park, Whiteley, Hampshire, PO15 7FJ.

Basis of preparation

The financial statements have been prepared on a going concern basis and under the historical cost convention, except as modified by the inclusion of investments at market value, and in accordance with applicable Accounting Standards in the United Kingdom, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Statement of Recommended Practice – Accounting and Reporting by provision of the Charities SORP 2015 (FRS 102). A summary of accounting policies, which have been applied consistently, is set out below.

(a) Income from donors and supporters

Income from donations and supporters are accounted for on an accrual’s basis. Any significant income related to the year end and received at the Fishermen’s Mission’s head office or main bankers after the year end is accrued in the financial statements.

Gifts in kind are included in incoming resources at the year end at an estimate of their value to the Fishermen’s Mission

(b) Legacies received

Legacy income is recognised when there is sufficient evidence to provide the necessary certainty that the legacy will be received, and the value of the incoming resource can be measured with sufficient reliability. Estimated legacy income of £865,748 (2022: £847,760) has not been included in the Statement of Financial Activities because the conditions of recognition have not been met.

(c) Tangible fixed assets and depreciation

Depreciation is calculated to write off the cost of tangible fixed assets over their expected useful economic lives on the following basis:

Freehold property 2% straight line
Long-term and short-term leasehold Amortised over period
property of the lease
Motor vehicles 33% reducing balance
Furniture, fixtures and fittings 20% reducing balance
Computer equipment 25% straight line

Individual fixed assets costing more than £1,000 are capitalised at cost and are subsequently stated at cost less depreciation.

24

Royal National Mission to Deep Sea Fishermen

(d) Capital grants

Capital grants are recognised in restricted or unrestricted funds in accordance with the conditions of the grantor.

(e) Investments

Investments are stated at market value. Any unrealised gains and losses on investments are taken directly to the statement of financial activities.

(f) Investment income

Investment income is shown on an accrual’s basis.

(g) Classification of expenditure

Administration/Support costs have been reapportioned to direct charitable and fundraising costs dependent on the expense i.e., headcount/direct/evenly across cost centres in accordance with guidance in the SORP. Expenditure includes any VAT, which cannot be recovered and is reported to the part of the expenditure to which it relates. Resources expended are accounted for on an accrual’s basis.

(h) Charitable expenditure

Charitable expenditure includes all costs associated with the Fishermen’s Mission and Welfare centres situated throughout the United Kingdom. A proportion of time is spent doing work of a fundraising nature. The costs of this have been allocated to fundraising expenditure.

(i) Fundraising expenditure

Fundraising expenditure includes a proportion of administration charges. Fundraisers spend a proportion of their time doing work of a charitable nature. The costs of this have been allocated to charitable expenditure.

(i) Administration/Support expenses

Administration/Support expenses include building running costs and all related charges (including salaries) of head office. Administration/Support expenses are re-allocated to charitable and fundraising expenditure by headcount, direct and evenly across cost centres.

(k) Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Fishermen’s Mission and include the audit

fees and costs linked to the strategic management of the Fishermen’s Mission. These are included under resources expended within charitable expenditure.

25

Royal National Mission to Deep Sea Fishermen

(l) Operating lease

Rental payments under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.

(m) Pension costs

The charitable company participates in a defined benefit scheme. The defined benefit scheme pension costs are assessed in accordance with actuarial advice and based on the most recent actuarial valuation of the scheme. Pension costs and disclosures have been reported in accordance with Section 28 of the FRS 102.

The Fishermen’s Mission also operates a defined contribution scheme. Contributions payable to this scheme are included in the Statement of Financial Activities in the period to which they relate.

(n) Funds

Restricted funds are those whose use is legally restricted to specific uses whether by a trust deed or by a letter received with the original gift.

Designated funds are those whose use is not legally restricted but whose purpose has been designated by Council. Council is entitled to change its mind and use these funds in whichever way it sees fit. The allocation of the Designated fund has been added as a note under the fund analysis.

The unrestricted fund covers all items that do not fall into the above categories.

(o) Cash and Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are also liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

(p) Financial Instruments

The Fishermen’s Mission 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.

(q) Going Concern

A five-year rolling business plan underpins Trustees’ strategic assessments of going concern out to the medium term (3 years). This plan cascades through an annual budget assumptions process and thence to the production of the inyear budget that reflects:

26

Royal National Mission to Deep Sea Fishermen

Where appropriate, funds from a designated ‘Development Fund’ in the reserves are allocated to balance the budget and reduce in-year income risk. To sustain going concern for the medium term, as a strategic priority, the Trustees aim to maintain the level of free reserves to support a minimum level of two years core service delivery (Business Continuity Reserves), as stated in the Fishermen’s Mission reserve policy.

Based on this assessment the Trustees are satisfied that reserves are set at a reasonable level. The Fishermen’s Mission has sufficient liquid resources to meet its planned obligations and maintain its stated reserve policy and has adopted a going concern basis for preparation of the financial statements.

The Fishermen’s Mission is assessed to be a going concern.

(r)

Key Estimations

All accounting estimates are included that could be material to the financial statements. Those estimates used are reasonable in the circumstances and consistent with assumptions used in previous years.

Creditors are recognised where the Fishermen’s Mission has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Trade debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accruals and prepayments are calculated at year end. Invoices are accrued into the accounts if they are received after the end of the financial year but are either dated in the current financial year or are for goods/services received in the current financial year. Invoices are prepaid if they have been received during the year but they fully or proportionately relate to the following year.

Accrued income is included at the best estimate of the amount's receivable at the balance sheet date.

(s) Restatement

The Trustees have reflected on the historic split of costs between fundraising and administration and consider the revised apportionments and allocation in 2023 to more accurately reflect the position of the Fishermen’s Mission. The 2022 financials have been restated to reflect the treatment which resulted in a decrease in fundraising costs of £563,177 and an increase in administration costs of £563,177.

27

Royal National Mission to Deep Sea Fishermen

2. INVESTMENT INCOME

Income from Investments 2023
2022
£
£
300,000
300,000
300,000
300,000

3. TOTAL RESOURCES EXPENDED

3a Costs of generating voluntary income

Fundraising
Admin/Support		 Restricted
Fund
Unrestricted
Fund
Total Funds
Total Funds
2023
2023
2023
2022
£
£
£
£
RESTATED
26,843
283,405
310,248
380,314
0
689,467
689,467
689,469
26,843
972,872
999,715
1,069,783

3b Governance cost

Salaries and related
Council expenses
Audit fee & FRS Note
c
Direct Costs
Manual staff costs
Uniformed staff costs
Depreciation
Centres operating costs
Welfare payments
Publicity		 Restricted
Fund
Unrestricted
Fund
Total Funds
Total Funds
2023
2023
2023
2022
£
£
£
£
0
33,931
33,931
36,008
0
35,217
35,217
22,869
0
33,450
33,450
18,000
0
102,598
102,598
76,877
Welfare
Total
Total
2023
2023
2022
£
£
£
61,664
61,664
53,452
1,310,165
1,310,165
1,006,781
53,396
53,396
63,879
720,876
720,876
584,926
44,743
2,824
44,743
2,824
27,628
0
2,193,668
2,193,668
1,736,666

3c Direct Costs

28

Royal National Mission to Deep Sea Fishermen

3d Support Costs

Admin costs
(HQ)		 Costs of
Generating
Funds
Governance
Welfare
Total
Total
2023
2023
2023
2023
2022
£
£
£
£
£
119,088
0
547,138
666,226
497,851
119,088
0
547,138
666,226
497,851

3e Analysis of resources expended by expenditure type

Costs of
generating
funds
Fundraising
Admin
Welfare
Governance		 Staff Costs
Depn Other Costs
Total
Total
2023
2023
2023
2023
2022
£
£
£
£
£
RESTATED
310,248
427,724
0
1,898
0
259,845
310,248
689,467
380,314
689,469
1,337,898
97,524
1,211,543
2,646,965
2,137,908
33,931
0
68,667
102,598
76,876
2,109,801
99,422
1,540,055
3,749,278
3,284,567

3f Analysis of resources expended by activities

Welfare Activities
undertaken
directly
Support Costs
Total
Total
2023
2023
2023
2022
£
£
£
£
2,193,668
547,138
2,740,806
2,214,785

4. NET INCOMING RESOURCES

The net incoming resources for the year are stated after charging/(crediting): -

Depreciation of tangible fixed assets
Auditors’ remuneration – audit fees
(Profit) on disposal of fixed assets
Interest payable – bank interest
Operating lease rentals – plant and equipment
Operating lease rentals – other		 2023
2022
£
£
100,259
108,779
26,400
14,000
2,838
0
1,062
10,046
3,300
3,841
36,005
58,944

29

Royal National Mission to Deep Sea Fishermen

5. EMPLOYEE INFORMATION

The average weekly number of persons employed during the year is analysed below: 

Fishermen’s Mission Staff – Port and Fundraising
Administration Staff – Head Office
Support Staff (Ports)		 2023
2022
Number
Number
47
46
11
11
10
10
68
67

Employment costs for all full time and part time staff:

Wages and Salaries
Social Security Costs
Pension Costs		 2023
2022
£
£
1,757,450
1,552,517
165,238
149,520
129,072
123,073
2,051,760
1,825,110

The number of employees whose emoluments for the year exceeded £60,000 is as follows:

2023 2022
Number Number
£60,001 - £70,000 0 1
£70,001 - £80,000 0 0
£80,001 - £90,000 1 1
£90,001 - £100,000 1 0
£100,001 - £110,000 0 0

The pension contribution made by the employer on behalf of one employee above was £7,193 (2022: £6,810).

The Fishermen’s Mission has identified Key Management Personnel as the current Executive Team, their total remuneration amounts to £190,036 (2022: £200,642). In Financial Year 2022 there was a period when there was a change in CEO with a crossover period therefore salaries were higher.

Council members’ remuneration, expenditure and donations given

No Council member received any remuneration for Financial Year 2022/2023 (2021/2022: nil). Costs relating to Council members’ expenditure included in governance expenses were for accommodation, travel, and meal costs. Council Members claimed expenses during the year of £25,689 (2022: £17,800) although this includes costs of recruiting new Trustees of £13,999.

Donations of £2,790 (2022: £2,086) were received from Council members.

30

Royal National Mission to Deep Sea Fishermen

6. FIXED ASSET INVESTMENTS

.
FIXED ASSET INVESTMENTS
Market Value
At 1 November 2022
Increase/(Decrease) in Cash
Net Investment/(Disinvestment)
Realised Profit/(Loss)
Unrealised Profit/(Loss)
At 31 October 2023
Fixed asset investment represents:
Cash
Currency Sterling
Mixed Investments		 Listed
Investments
£
10,983,285
16,299
(720,918)
75,280
30,172
10,384,118
102,260
288,364
9,993,494
10,384,118
The following investments represents more than 5% of the portfolio by
market value:
Sarasin Endowments Fund Class A INC
ISC Sterling Liquidity Fund
9,993,494
390,624
10,384,118

Investment Income of £300,000 is released at £75,000 each quarter and is shown as in Note 2.

7. TANGIBLE FIXED ASSETS

Cost
At 1 November 2022
Additions
Disposals
At 31 October 2023
Depreciation
At 1 November 2022
Charge for year
Disposals
At 31 October 2023
Net Book Values at 31
October 2023
Net Book Value at 31
October 2022		 Freehold
and
Leasehold
Property
Motor
Vehicles
Furniture,
Fixtures, Fittings
and Computer
Equipment
Total
£
£
£
£
2,483,386
427,027
130,899
3,041,312
0
61,360
0
61,360
0
(36,281)
0
(36,281)
2,483,386
452,106
130,899
3,066,391
1,034,813
323,460
120,317
1,478,590
48,826
45,889
5,546
100,261
0
(35,520)
0
(35,520)
1,083,639
333,829
125,863
1,543,331
1,399,747
118,277
5,036
1,523,060
1,448,573
103,567
10,582
1,562,721

The Freehold properties include 11 Retirement properties and the Head Office in Whiteley. The Leasehold properties costs related to works carried out on 5 leased units to make them suitable for Fishermen’s Mission use.

31

Royal National Mission to Deep Sea Fishermen

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023 2022
£ £
Other Debtors 3,589 983
Prepayments and Accrued Income 187,646 117,233
191,235 118,216
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade Creditors 54,331 37,838
Other Creditors 315 1,223
Other Taxes and Social Security 46,753 39,814
Accruals and Deferred Income 40,525 13,331
141,924 92,206

10. FUNDS

0.
FUNDS
At 1
November
2022
Net Incoming
Resources for
the Year
Net
Unrealised
Gain on
Investment
Assets
Investment
buyout
George Watts
Fund (NE
Scotland)
Actuarial
Adjustment
Gain
Carry Value
Fixed Assets
At 31
October
2023		 Unrestricted
Funds
General
Fund
Pension
Fund
Designated
Funds
Restricted
Funds
Total
£
£
£
£
£
5,363,844
0
7,437,635
249,572
13,051,051
(628,428)
(50,000)
(99,955)
24,214
(754,169)
30,172
0
612,908
0
0
0
0
(612,908)
0
0
30,172
0
0
0
0
0
0
(60,599)
50,000
0
60,599
0
0
50,000
0
5,317,897
0
6,785,371
273,786
12,377,054

32

Royal National Mission to Deep Sea Fishermen

10a . DESIGNATED FUNDS ANALYSIS

Fixed Assets
Pension
Cov/Buyout
Provision
Major Emergency
Business
Continuity
Business
Development
George Watts
Fund		 At 1
November
2022
Incoming Expenditure
Trf to GF
31
October
23
1,477,634
0
(90,397)
60,599
1,447,836
1,000,000
0
(362,092)
(612,908)
25,000
500,000
0
0
0
500,000
2,750,000
0
0
0
2,750,000
1,032,886
409,096
(63,910)
0
1,378,072
677,115
26,348
(19,000)
0
684,463
7,437,635
435,444
(535,399)
(552,309)
6,785,371

Fixed Assets – in Financial Year 2022/2023 2 vehicles were sold and 3 new ones were purchased

Pension Cov/Buyout - Admin charges of £142k were paid (including 2 GMP Equalisation payments) and a Final Premium of £220K was paid to L&G. £25k has been left in Designated Funds for further admin charges in Financial Year 2023/2024 and the balance has been transferred to the General Fund

Major Emergency – no movement

Business Continuity – no movement

Business Development – The incoming funds of £409k are the excess legacies received over the budget (£1,009k actual vs £600k budget). These funds are to be used on developing the business which is currently mainly with IT Projects. £63k has currently been spent on the new website

George Watt Fund - £7k Gain on investment and £19k Interest income received. The interest income was spent fully in the Aberdeen and Fraserburgh areas

33

Royal National Mission to Deep Sea Fishermen

11 . RESTRICTED FUNDS ANALYSIS

CENTRES REVENUE At
01 November
2022		 Incoming Expenditure At
31 October
2023
Shetland Fishermens’Widows 50,475 0 219 50,256
Retired Fishermens & Widows 726 0 0 726
Age UK 370 0 0 370
‘Joanna C’ 18,803 0 18,794 9
St Hilda Trust (Fish Quay Hub) 820 0 820 0
Whitby Seafoods 10,000 0 0 10,000
Seafarers Charity/NorthEast Hardship 2,594 10,000 1,071 11,524
James Reckitt Trust 36,696 0 15,792 23,904
Suffolk County Council* 11,000 0 12,203 (1,203)
MNWB–SHOUT 0 14,067 12,742 1,325
MNWB–Bridlington Health Trainer 0 15,144 11,732 3,412
Balmoral Comtec Ltd 0 2,071 1,087 984
Forbes Ettles Hurry 0 102,039 51,020 51,019
SEAFIT Q2–Fairwinds 0 10,000 9,500 500
SEAFIT Q3–Fishwell 0 10,000 323 9,677
SEAFIT – Aberdeen Health Lifestyle
Advisor**		 0 10,000 27,157 (17,157)
Seafarers Charity–Migrant Fishermen 0 56,936 33,086 23,850
Trinity House 0 10,000 0 10,000
Garfield Weston Foundation–Fairwinds 0 10,000 9,115 885
Enquest 0 500 3 497
S Buckley (Fleetwood) 30,000 0 12,016 17,984
Acquired Fixed Asset Fund 85,089 0 9,864 75,225
GRAND TOTAL 249,572 250,757 226,543 273,787

Note. Funding for Suffolk CC project received over 2 years and budgeted on a flat line. The project has concluded and the deficit will be zeroed by a transfer from unrestricted funds in 2023/2024. SEAFIT Aberdeenshire Lifestyle Advisor* partially funded in 2022/2023; the balance of costs will be received from grant sharing and use of unrestricted funds in 2023/2024.

34

Royal National Mission to Deep Sea Fishermen

12 . ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted Funds
Expenditure Fund
Acquired Fixed
Assets
Unrestricted
Funds
Designated Fund
General Fund
Pension Scheme
Fund		 Tangible
Fixed
Assets
Investments
Net Current
Assets
Pension
Liability
Total
£
£
£
£
£
0
0
198,561
0
198,561
75,225
0
0
0
75,225
75,225
0
198,561
0
273,786
1,447,836
684,463
4,653,072
0
6,785,371
0
9,699,655
(4,381,758)
0
5,317,897
0
0
0
0
0
1,523,061
10,384,118
469,875
0
12,377,054

The Expenditure Fund is a fund which consists of income given for the purchase of specific items. The Acquired Fixed Assets Fund is a restricted fund consisting of assets with restrictions on use.

The Designated Fund is a fund consisting of all fixed assets with no restrictions on use. It includes provisions to underpin various Fishermen’s Missions strategies including Major Emergencies. The George Watts Fund has been designated to provide an annual income and if required capital project funding for the Northeast of Scotland.

The General Fund is an unrestricted fund which can be used for any charitable purpose. The Pension Scheme Fund is an unrestricted fund equal to the year-end liability of the defined benefit pension scheme.

13. TAXATION

The Fishermen’s Mission is a charity and as such is exempt from taxation on its income and gains to the extent that they are applied to its charitable purpose.

14. FUTURE CAPITAL EXPENDITURE

Authorised by Council but not contracted for
Contracted for but not provided		 2023
2022
£
£
83,852
117,500
0
0

35

Royal National Mission to Deep Sea Fishermen

15. FINANCIAL COMMITMENTS

At 31 October 2023, the Fishermen’s Mission had annual commitments under noncancellable operating leases expiring as follows: -

Due within 1 year
Due within 2-5 years
More than 5 years		 Land & Building
Other
2023
2022
2023
2022
£
£
£
£
36,005
58,944
3,300
3,841
56,566
102,375
6,600
9,900
0
0
0
0
92,571
161,319
9,900
13,741

16. PENSIONS

In accordance with Financial Reporting Standard 102 – (FRS 102) the Fishermen’s Mission is required to disclose certain information concerning assets, liabilities, income, and expenditure related to pension schemes for its employees.

The Fishermen’s Mission operates a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the Fishermen’s Mission, being invested with investment management companies. Contributions to the scheme are charged to the Statement of Financial Activities to spread the cost of pensions over employees’ working lives with the Fishermen’s Mission. A qualified independent actuary, on the basis of triennial valuations last carried out on the 31 October 2015, updated to 31 October 2019, using the projected unit method determines the contributions.

The scheme was suspended from 1 November 2007 and so no contributions relating to wages and salaries were made during the year ended 31 October 2023. The Fishermen’s Mission did make contributions towards administration costs of the pension scheme during the year as agreed in the Schedule of Contributions.

Additional contributions have been made by the Fishermen’s Mission from 1 November 2004, such amounts of a regular and one-off nature as may be agreed between the Trustees and the employer from time to time and recorded in a Trustee minute or resolution. These contributions have been made to remove the deficiency in respect of past service at the valuation date.

In the year to October 2023 charges of £142,250 were incurred relating to RBS Pension administration costs, this includes two GMP Equalisation payments totalling £4,210. There was also a final premium payment to Legal & General of £219,842

Principal actuarial assumptions at the year-end were as follows:

2023 2022
Discount Rate 5.5% 4.7%
Inflation - RPI 3.6% 3.7%
Pension increases in deferment 3.6% 3.7%
RPI minimum 3% pa and maximum 5% pa 3.7% 3.7%
pension increases
RPI maximum 5% pa pension increases 3.4% 3.5%
Post retirement mortality: 100% S3NA CMI 2022 (core) (1.25%)
95% S2NA CMI 2021(core) (1.25%)

36

Royal National Mission to Deep Sea Fishermen

Life expectancy at age 65 of male aged 65 86.7 87.2
Life expectancy at age 65 of female aged 65 89.2 89.7
Life expectancy at age 65 of male aged 45 87.9 88.5
Life expectancy at age 65 of female aged 45 90.6 91.1
The current asset split is as follows:
Life expectancy at age 65 of male aged 65
86.7
87.2
Life expectancy at age 65 of female aged 65
89.2
89.7
Life expectancy at age 65 of male aged 45
87.9
88.5
Life expectancy at age 65 of female aged 45
90.6
91.1
The current asset split is as follows:		 Life expectancy at age 65 of male aged 65
86.7
87.2
Life expectancy at age 65 of female aged 65
89.2
89.7
Life expectancy at age 65 of male aged 45
87.9
88.5
Life expectancy at age 65 of female aged 45
90.6
91.1
The current asset split is as follows:		 Life expectancy at age 65 of male aged 65
86.7
87.2
Life expectancy at age 65 of female aged 65
89.2
89.7
Life expectancy at age 65 of male aged 45
87.9
88.5
Life expectancy at age 65 of female aged 45
90.6
91.1
The current asset split is as follows:
Equities
Property
Cash
Liability Driven Investments (LDI) Strategy
Annuity contract
Self Sufficiency Fund
Net current assets
Total Assets
Balance Sheet
Fair value of assets
Defined benefit obligation
Surplus/(Shortfall)
Effect of asset ceiling/IFRIC14
Net defined benefit (liability)/asset		 Period to
31 Oct 2023
Period to
31 Oct 2022
0
0
0
0
0
0
0
0
0
£7,396,000
0
0
0
£55,000
£0
£7,451,000
31 Oct 2023
31 Oct 2022
0
£7,451,000
0
0
0
(£7,451,000)
£20,000
(£20,000)
£0
£0
Amount recognised in Profit and Loss
Period to Period to
31 Oct 2023 31 Oct 2022
Current service cost 0 0
Administration expenses £50,000 £144,000
Interest costs £335,000 £195,000
Interest income (£335,000) (£211,000)
Interest on effect of asset ceiling/IFRIC14 0 £16,000
Total charge to Profit and Loss £50,000 £144,000
Amount charged to other comprehensive income
Period to Period to
31 Oct 2023 31 Oct 2022
Return on assets less interest income (£982,000) (£4,260,000)
Actuarial gains/(losses) – change in £792,000 £3,347,000
assumptions
Change in impact of asset ceiling/IFRIC14 £20,000 £957,000
Total remeasurements (£170,000) £44,000

37

Royal National Mission to Deep Sea Fishermen

Change of changes in present value of DB obligation

Value of liabilities at start
Current service costs
Past service costs
Interest cost
Benefits received/(paid)
Change due to settlement or curtailments
Experience (gain)/loss on experience
Change in assumptions (gain)/loss
Settlement Payments
Closing defined benefit obligations
Change in value of assets
Value of assets at start
Interest on assets
Employer contributions
Member contributions
Benefits paid
Administration costs
Settlements and curtailments
Actuarial gain/(loss) on Scheme assets
Value of assets at end
Change in effect of the asset ceiling/IFRIC14
Opening effect of the asset ceiling/IFRIC14
Interest on effect of assets ceiling/IFRIC14
Change in the effect of asset ceiling/IFRIC14
Closing effect of the asset ceiling/IFRIC14		 Period to
31 Oct 2023
Period to
31 Oct 2022
£7,431,000
£ 11,067,000
0
0
0
0
£335,000
£195,000
(£592,000)
(£484,000)
0
0
0
0
(£792,000)
(£6,382,000)
(£3,347,000)
0
£0
£7,431,000
Period to
31 Oct 2023
Period to
31 Oct 2022
£7,451,000
£12,028,000
£335,000
£211,000
£220,000
£100,000
0
0
(£592,000)
(£484,000)
(£50,000)
(£144,000)
(£6,382,000)
0
(£982,000)
(£4,260,000)
£0
£7,451,000
Period to
31 Oct 2023
Period to
31 Oct 2022
£20,000
£961,000
£0
£16,000
(£20,000)
(£957,000)
£0
£20,000

GROUP PERSONAL PENSION

The Fishermen’s Mission also operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Fishermen’s Mission in an independently administered fund. The pension cost charge represents contributions payable by the Fishermen’s Mission to the fund. At the year end, there were no unpaid contributions (2022: none).

one).
Contributions payable by the Fishermen’s
Mission for the year		 2023
2022
£
£
129,072
123,073

38

Royal National Mission to Deep Sea Fishermen

17. RELATED PARTY TRANSACTIONS

There were no related party transactions during the year.

Disclosure: Mrs Alison Godfrey (Director of Business Development) at the Fishermen’s Mission is a key management person for the Fishermen’s Mission. Mrs Godfrey is also a serving trustee of the Merchant Navy Welfare Board (MNWB)’s Council which receives and approves grant applications from the Fishermen’s Mission along with other charities and organisations. As one of approximately 15 current trustees, there is a recognised degree of influence as she advises the Council as a “ person able to make a particular contribution due to their specialist expertise ” but this is not considered to be ‘significant influence’ so as to be in conflict under the definition of related party transactions.

Note. During Financial Year 2022/2023 the Fishermen’s Mission received grants from MNWB totalling £150,824 (including £125K of funding which flowed through MNWB from the Department for Transport). In Financial Year 2021/2022, the total value of grants received from MNWB was £81,360.

18 . CASH FLOW STATEMENT

(a) Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net expending resources
Investment income
Interest payable
Depreciation on tangible fixed assets
(Increase)/Decrease in debtors
(Decrease)/Increase in creditors
Pension scheme contributions in excess of charge
(Gain)/Loss on Disposal of Fixed Assets
Net Cash Provided by (Used In) Operating Activities		 2023
2022
£
£
(754,169)
(935,454)
(300,000)
(300,000)
1,062
10,046
100,259
108,779
(73,020)
27,078
49,717
13,811
50,000
144,000
(2,838)
(110,360)
(928,989)
(1,042,100)

(b) Reconciliation of net cash flow to movement in net cash balance

2023 2022
£ £
(Decrease)/Increase in cash in the year (58,472) (280,615)
Changes in net cash balance from cash flows (58,472) (280,615)
Net cash balance brought forward 479,035 759,650
Net cash balance carried forward 420,563 479,035
c)
Analysis of net cash resources for the year
At 31 Cash At 31
October Flows October
2022 2023
£ £ £
Cash in hand and at bank 479,035 (58,472) 420,563

(c) Analysis of net cash resources for the year

19.

POST BALANCE SHEET EVENT

There are no post balance sheet events for Financial Year 2022/2023.

39