JOHN WILLIAM SLATER MEMORIAL FUND REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
Registered Charity No: 270706
Haysmacintyre LLP Chartered Accountants Registered Auditors
JOHN WILLIAM SLATER MEMORIAL FUND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
| CONTENTS | Page |
|---|---|
| Trustees’ report | 1 – 4 |
| Auditors’ report | 5 - 7 |
| Statement of financial activities | 8 |
| Balance sheet | 9 |
| 10 | |
| Statement of cash flows | |
| Notes to the financial statements | 11 - 12 |
JOHN WILLIAM SLATER MEMORIAL FUND
TRUSTEES REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
REFERENCE AND ADMINISTRATIVE DETAILS
CHARITY SECRETARY
David Appleton Nautilus House Mariners’ Park Wallasey CH45 7PH Tel: 0151 639 8454 E-mail slater@nautilusint.org
TRUSTEES
Anthony Mark Dickinson David Slater Glenys Jackson
INVESTMENT ADVISORS
James Hambro & Partners LLP 45 Pall Mall London SW1Y 5JG
AUDITOR
Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG
PRINCIPAL BANKER
Unity Trust Bank Plc Nine Brindleyplace Birmingham B1 2HB
1
JOHN WILLIAM SLATER MEMORIAL FUND
TRUSTEES’ REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees submit the statutory report and financial statements of the John William Slater Memorial Fund for the year ended 31 December 2022. The activities of the Fund are presented in compliance with the provisions of the Statement of Recommended Practice for Charities (FRS 102).
The financial statements comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash flows and supporting notes.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The John William Slater Memorial Fund is registered as a Charity under number 270706 and is governed by the terms of a Trust Deed dated 4 December 1975.
The Trustees of the Charity have the power to apply both the capital and the income for the general purposes of the Charity. Accordingly, the capital does not represent a permanent endowment.
The Charity is administered by the Secretary under the direction of the Trustees.
A Management Committee, which includes the Trustees and other persons with relevant knowledge in its membership, considers individual applications and other relevant items and makes recommendations to the Trustees.
OBJECTIVES AND ACTIVITIES
The Charity’s objects are for general charitable purposes, with particular regard for the following educational purposes which were of particular interest to the settlor:
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The provision of financial assistance to ships ratings to enable them to obtain certificates of competency or other officers’ certificates or diplomas.
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The provision of grants for research into management and labour relations, particularly within the shipping and air transport industries and the publication of the results of such research.
The principal aim currently is the provision of financial assistance to suitable ships’ ratings and uncertificated officers to enable them to obtain Certificates of Competence or other Officers’ Certificates and Diplomas. The Charity’s core activity is the making of grants to individuals in furtherance of this aim.
ACHIEVEMENTS AND PERFORMANCE
In 2022 the Fund gave 52 awards (2021: 39) of which 40 (2021: 28) were taken up within the year. The trustees have made the decision to limit the number of awards to 60 per year in order to ensure the long term financial stability of the fund. The amount of each award is £18,500 plus £1,500 on obtaining an Officer of the Watch certificate (2021: £18,500 plus £1,500).
FINANCIAL REVIEW
The Charity supported 52 awards in 2022 (2021: 39). The value of each award is £18,500 plus £1,500 on obtaining an Officer of the Watch certificate during the year. A generous grant of £400,000 (2021: £400,000) was received from the Maritime Education Foundation. The Trustees are also grateful for the support from Nautilus International for the considerable professional and administrative support. In 2022 Nautilus also gave a grant of £3,500 to support the work of the charity (2021: £3,500).
Risk Management
The Trustees are responsible for identifying any major risks to which the Charity is exposed, reviewing these and establishing systems to mitigate the effect of any such risk.
2
JOHN WILLIAM SLATER MEMORIAL FUND
TRUSTEES’ REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
FINANCIAL REVIEW (continued)
The principal risk faced by the Charity remains the cessation of the major annual grant received from the Maritime Education Foundation. In 2022 this grant was £400,000. The charity current investments were valued at £4.1million as at 31 December 2022 (2021: £5.3million) and are available to assist in control management of the current and future awards expenditure.
The Charity’s Assets
The investments held by the Charity can be invested in accordance with the Trustees’ instructions without restriction. A review of the investments by the Trustees confirms that the assets are properly held and are adequate to fulfil the obligations of the Charity.
James Hambro Partners (JHP) Fund investment manager.
The Trustee Act 2000 governs the investments held by the Charity.
The Trustees have delegated the management of the investment portfolio to JHP with the objective to maximise long total returns commensurate with a moderate degree of risk. JHP are expected to provide quarterly updates regarding the portfolio value, purchases, and sales. Performance of the portfolio is monitored, and its total returned measured quarterly against the ARC Balanced Index benchmark. The performance of the portfolio - net of fees - over the year was -7.7% against the benchmark -8.00%.
Reserves Policy
The Charity maintains reserves to assist with the funding of training awards. The level of reserves is reviewed annually by the Trustees to enable the Charity to continue to provide such awards.
The Charity has built up the level of funds to assist in meeting the provision in the Balance Sheet which currently stand at £1,643,700. This provision is reviewed annually, and any adjustment is taken through the Income and Expenditure Statement.
The Charity’s free reserves amounted to £3,029,498. as of 31 December 2022 (2021: £3,351,358). The Trustees are continuing the process of formulating a formal policy for reserves, which will set a target range for free reserves in future years.
Statement on public benefit
The objectives and activities, and achievement and performance sections of this report clearly set out the activities which the Charity undertakes for the public benefit.
The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission in determining the activities undertaken by the Charity.
FUTURE PLANS
To increase the numbers and value of awards to suitable applicants as far as available resources permit.
3
JOHN WILLIAM SLATER MEMORIAL FUND
TRUSTEES’ REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trust Deed provides that the Trustees are responsible for the absolute control and administration of the affairs and the investments of the Charity.
The Trustees of the fund are currently Anthony Mark Dickinson, David Slater and Glenys Jackson.
Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the charity’s activities during the year and of its financial position at the end of the year. In preparing those financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently.
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make judgements and estimates that are reasonable and prudent.
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observe the methods and principles of the Charities SORP.
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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.
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The assets of the Charity are held on Trust by the Trustees.
Approved by and on behalf of the Trustees on 19 April 2023.
A M Dickinson
Trustee
4
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF
JOHN WILLIAM SLATER MEMORIAL FUND
Opinion
We have audited the financial statements of the John William Slater Memorial Fund for the year ended 31 December 2022 which comprise Statement of Financial Activities the Balance Sheet, the Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of the charity’s net movement in funds for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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adequate accounting records have not been kept by the charity; or
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sufficient accounting records have not been kept; or
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the charity financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
5
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF
JOHN WILLIAM SLATER MEMORIAL FUND (continued)
Responsibilities of trustees for the financial statements
As explained more fully in the trustees’ responsibilities statement set out on page 4 , the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements n respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to revenue recognition, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to matters requiring judgement and estimation techniques. Audit procedures performed by the engagement team included:
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Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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Evaluating management’s controls designed to prevent and detect irregularities;
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Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
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Challenging assumptions and judgements made by management in their critical accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involved intentional concealment, forgery, collusion, omission or misrepresentation.
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.
6
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF
JOHN WILLIAM SLATER MEMORIAL FUND (continued)
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.
Haysmacintyre LLP Statutory Auditors 10 Queen Street Place London Date: 25 April 2023 EC4R 1AG
Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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JOHN WILLIAM SLATER MEMORIAL FUND
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted Fund | Unrestricted Fund | ||
|---|---|---|---|
| 2022 | 2021 | ||
| Note | £ | £ | |
| INCOME FROM: | |||
| Donations | 403,500 | 400,000 | |
| Investments | 72,638 | 74,036 | |
| -------------------- | -------------------- | ||
| Total income | 476,138 | 474,036 | |
| -------------------- | -------------------- | ||
| EXPENDITURE | |||
| Charitable activities: - | |||
| Provision of financial assistance to suitable ships’ ratings:- | |||
| Training grants payable | 2 | 868,453 | 635,602 |
| Adjustment to training grants provision | (752,018) | (675,282) | |
| Support costs | 30,000 | 30,000 | |
| ------------------ | ------------------ | ||
| Total expenditure | 146,435 | (9,680) | |
| ------------------ | ------------------ | ||
| NET INCOME BEFORE GAINS/(LOSSES) | 329,703 | 483,716 | |
| OTHER RECOGNISED GAINS/(LOSSES): | |||
| Gains and (losses) on investments:- | |||
| Realised | 334,987 | (172,503) | |
| Unrealised | (986,551) | 761,503 | |
| -------------------- | -------------------- | ||
| NET INCOME/ (EXPENDITURE) FOR THE YEAR | (321,861) | 1,072,716 | |
| Total funds brought forward at 1 January | 3,351,358 | 2,278,642 | |
| ---------------------- | ---------------------- | ||
| Balance carried forward at 31 December | £3,029,497 | £3,351,358 | |
| =========== | =========== |
The notes on pages 11 and 12 form part of these financial statements.
8
JOHN WILLIAM SLATER MEMORIAL FUND
BALANCE SHEET
AS AT 31 DECEMBER 2022
| 2022 | 2021 | ||
|---|---|---|---|
| Note | £ | £ | |
| FIXED ASSETS | |||
| Investments | 4 | 4,121,933 | 5,294,961 |
| CURRENT ASSETS | |||
| Accrued income | 438,198 | 400,003 | |
| Cash with the Marine Society & Sea Cadets | 60,000 | 60,000 | |
| Bank and cash | 334,855 | 109,837 | |
| Money held by investment managers | 239,648 | 188,336 | |
| -------------------- | -------------------- | ||
| 1,072,701 | 758,176 | ||
| Creditors: | |||
| Provision for awards | 5 | (1,643,700) | (2,395,718) |
| Training grants creditor | (476,068) | (306,061) | |
| Other creditors | (45,369) | - | |
| ---------------------- | ---------------------- | ||
| (2,165,137) | (2,701,779) | ||
| ---------------------- | ---------------------- | ||
| Net current liabilities | (1,092,436) | (1,943,603) | |
| ---------------------- | ---------------------- | ||
| NET ASSETS | £3,029,497 | £3,351,358 | |
| =========== | =========== | ||
| FUND | |||
| Unrestricted funds | £3,029,497 | £3,351,358 | |
| =========== | =========== |
The financial statements were approved and authorised for issue by the Board of the Trustees on 19 April 2023 and were signed below on its behalf by:
D Slater Trustee
A M Dickinson Trustee
The notes on pages 11 and 12 form part of these financial statements.
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JOHN WILLIAM SLATER MEMORIAL FUND
STATEMENT OF CASH FLOWS
AS AT 31 DECEMBER 2022
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Cash flow from operating activities | ||
| Net cash used by operating activities | (245,134) | (547,702) |
| Cash flows from investing activities | ||
| Proceeds from sale of investments | 1,685,809 | 6,922,220 |
| Purchase of investments | (1,164,345) | (6,886,563) |
| -------------------- | -------------------- | |
| Net cash provided by investing activities | £521,464 | £35,657 |
| -------------------- | -------------------- | |
| Change in cash and cash equivalents in the reporting period | 276,330 | (512,045) |
| Cash and cash equivalents at the beginning of the reporting period | 298,173 | 810,218 |
| -------------------- | -------------------- | |
| Cash and cash equivalents at the end of the reporting period | £574,503 | £298,173 |
| ========== | ========== | |
| Reconciliation of net expenditure to net cash flow from | ||
| operating activities | ||
| 2022 | 2021 | |
| £ | £ | |
| Net expenditure for the year | (321,861) | 1,072,716 |
| Adjustments for: | ||
| (Gains)/losses on investments | 651,564 | (589,001) |
| Decrease/(increase) in debtors | (38,195) | (382,198) |
| Increase/(decrease) in creditors | (536,642) | (649,219) |
| -------------------- | -------------------- | |
| Net cash used by operating activities | £(245,134) | £(547,702) |
| ========== | ========== |
Reconciliation of net debt
The Charity does not have any debt, and all information is included above, so no net debt reconciliation required.
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JOHN WILLIAM SLATER MEMORIAL FUND
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1. ACCOUNTING POLICIES
Basis of accounting
The financial statements have been prepared under the historical cost convention, with the exception of fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP Second edition, effective 1 January 2019), the Companies Act 2006 and applicable accounting standards (FRS102).
The principal accounting policies and estimation techniques are as follows.
Going concern
There are no material uncertainties surrounding the charity’s ability to continue as a going concern. The charity has sufficient liquid assets which could be called upon to meet its financial commitments as they fall due. Consequently, these financial statements have been prepared on a going concern basis.
Income
All income is recognised on a receivable basis.
Income from voluntary donations, legacies, grants and other income receivable is accounted for when the charity has entitlement to the income, the amount can be measured reliably, and the likelihood of receipt is probable.
Fund accounting
The charity has only one fund, which is unrestricted.
Investments
Listed investments are recognised at market value. The unrealised gains or losses are accounted for in the Statement of Financial Activities, as are any realised gains and losses.
Debtors
Other debtors are recognised at the settlement amount due after any discounts offered. Prepayments are valued at the amount prepaid net of any discounts due.
Awards
A provision is made in the financial statements for anticipated expenditure on awards granted before the year-end where training has commenced. All grants are made to individuals and there are no institutional grants.
Financial Instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Judgements in applying accounting policies and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results may ultimately differ from those estimates. The trustees consider the following items to be areas subject to estimation and judgement:
Provision for award
The charity considers the provision on an annual basis reviewing maximum exposure versus the amount already spent, less an estimate for non-starters and students who will not use the full grant. For grants awarded outside of the 4-year award, the Charity has reviewed each grant recipient individually to assess whether they are still entitled to the funds or whether they should be written off.
2. GRANTS PAYABLE
Training grants payable in the year represent awards made to 52 individuals (2021: 39 individuals).
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JOHN WILLIAM SLATER MEMORIAL FUND
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
3. STAFF COSTS AND TRUSTEE’S REMUNERATION
The Charity has no employees (2021: none) and no trustees receive remuneration from the charity. No trustees received reimbursement of expenses in the year (2021: none).
4. FIXED ASSETS INVESTMENTS
James Hambro & Partners are responsible for the day-to-day management and custody of the Charity’s investments.
The following are the investments of the Fund:
| The following are the investments of the Fund: | |||||
|---|---|---|---|---|---|
| Cost | Market | value | |||
| 2022 | 2021 | 2022 | 2021 | ||
| £ | £ | £ | £ | ||
| Fixed interest securities | |||||
| Other quoted securities:- | |||||
| Equity holdings | £4,308,841 | £5,208,145 | £4,121,933 | £5,294,961 | |
| =========== | =========== | ========== | ========== | ||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Movement in market value of investments | |||||
| Market value at 1 January | 5,294,961 | 4,741,618 | |||
| Less: disposals proceeds | (1,685,809) | (6,922,220) | |||
| Add: acquisitions at cost | 1,164,345 | 6,886,563 | |||
| Net Gain/(Loss) at 31 December | (651,564) | 589,000 | |||
| --------------------- | --------------------- | ||||
| Market value at 31 December | £4,121,933 | £5,294,961 | |||
| =========== | =========== | ||||
| Realised and unrealised gains on investments | |||||
| Realised Gain /(Loss) | 334,987 | (172,503) | |||
| Unrealised Gain /(Loss) | (986,551) | 761,504 | |||
| ------------------ | ------------------ | ||||
| (£651,564) | £589,001 | ||||
| ========= | ========= |
5. PROVISION FOR AWARDS
The Trustees estimate that a specific provision of £1,643,700 (2021: £2,306,584) is required relating to awards granted before the year end date.
| granted before the year end date. | |
|---|---|
| £ | |
| At 1 January 2022 | 2,395,718 |
| Decrease in provision based on number of awards made | (752,018) |
| ---------------------- | |
| At 31 December 2022 | 1,643,700 |
| =========== |
6. RELATED PARTY TRANSACTIONS
There were no related party transactions to note during the year (2021: none).
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