The Chairman Mr D R Cusdin in the Chair
(23 Members present)
ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2006
The Honorary Secretary (Mr K F Read) presented the Annual Report of the Trustees for 2006, which had been made available to members prior to the meeting.
The Annual Report and Financial Statements had been prepared in accordance with the new Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2005). In the opinion of the Charity Commission that means that the report was easier to understand by the “man in the street”. It had resulted in more words and possibly fewer numbers. The Trustees believed that it made interesting reading and hope that you found it informative.
During the financial year, which ended on 30 September 2006, the Trustees considered 66 applications for assistance. Of these, 35 were new applications while the remainder arose from home visits or from analysis of Annual Assessment forms, which regular beneficiaries are required to complete. The Trustees awarded 14 new regular grants and 2 existing beneficiaries had their grants increased. Sadly, 5 regular beneficiaries died, but in 3 of these cases the regular grants were still being paid to the widows. Two regular grants were discontinued because the recipients no longer needed financial assistance. At the end of the financial year regular grants were being paid to 90 beneficiaries, of whom 10 resided overseas. The Trustees also awarded 40 one-off grants during the year.
Although expenditure exceeded income, the Guild was able to maintain the regular grant at £20 per week, the maximum allowed by the Government’s Charitable Disregard Rule, which affected recipients receiving state benefits. The Guild was again the only nautical charity to pay this maximum. The good news was that this disregard rule limit had, with effect from 2 October 2006, been abolished for all UK recipients and from that date the Guild increased its regular grant level to £25 per week. The Trustees were also looking at other ways of enhancing payments that could be made to beneficiaries. The total value of grants paid during the financial year was £160,873, some £12,600 less than the previous year.
At Christmas 2006, Gift vouchers to the value of £100 were sent to all regular beneficiaries. The award of the Christmas Boxes for the ninth year running was helped by proceeds from the Tombola and Raffle held at the Institute’s Conversazione at the Grosvenor House last December.
The Guild advertised its services in several UK charity Directories, also in the Seafarer’s UK Royal Marine Band concert programmes, Merchant Navy Association and Royal Fleet Auxiliary publications and Nautical Magazines. The Guild also featured in several web based directories. Advertising had dual purpose; to attract applicants for assistance and donations and legacies.
For some time the existing Trustees had been concerned about the difficulty in finding members of the Guild prepared to stand for election as Trustees, particularly as the present Trustees were all maturing. Therefore, during the year the Chairman had written to all of the UK branches seeking volunteers. The Honorary Secretary was pleased to report that three volunteers had come forward from the East of England, West Midlands and North East England branches and were standing for election at the AGM. The Guild also gained volunteers from two other branches, South Wales and Kingston upon Hull and Humber Area, who were prepared to act as local representatives.
The charitable work of the Guild was carried out by the Trustees and other volunteers, and to help them gain knowledge of the welfare system and interview techniques, it was now normal for them to attend a joint Merchant Navy Welfare Board and SSAFA course for caseworkers. The Trustees were assisted by the Guild’s part time clerical assistant (Mrs Karen Starr) who would be employed full time in the near future as good governance required. The Guild also received valued help from Institute staff, especially those in accounts and membership departments.
The Honorary Secretary commended the Annual Report to the meeting.
The Honorary Treasurer (Mr P M Low) then presented the Annual Financial Statements for the year ended 30 September 2006, which had been made available to members prior to the meeting. In general, the format of the Financial Statements followed earlier years. However, the introduction of SORP 2005 had introduced some changes in presentation.
Firstly, the Honorary Treasurer referred to the Balance Sheet, which showed total charity funds at the year-end of £1,186,192, slightly less than the restated figure for 2005 of £1,219,135. He commented that those members who had compared last year’s Financial Statements might be concerned because at that time the reported total charity funds amounted to £2,847,309. This figure had been redefined as “Total Assets less current Liabilities” and happily the comparable figure for 2006 was £2,998,853.
This change arose from the treatment of the provision for the payment of future grants to existing beneficiaries, as in previous years the Guild had designated part of the reserves for this purpose. However, under SORP 2005, this provision was recognised as a liability to be deducted from the total funds. At 30 September 2006 this liability was calculated as £1,812,661,an increase over the 2005 figure (£1,628,174) of £184,487.This substantial increase in the provision for paying future grants had arisen for two main reasons. Firstly an increase from 80 to 90 in the number of regular beneficiaries and secondly the decision of the Trustees to increase the regular grant from £20 to £25 per week with effect from October 2006.
Secondly, the Honorary Treasurer drew attention to the Statement of Financial Activities, which showedincoming resources for the year of £130,493compared to the previous year’s figure of £137,159.The principal sources of income were:-
- Donations from members and branches of the Institute, including Gift Aid, was £33,452, an encouraging increase over 2005 (£30,549)
- The proceeds from the tombola and raffle at the Institute’s Conversazione, increased to £4,093from £3,652in the previous year.
- Investment Income increased to £91,888from £79,222in 2005. The investmentmanagement fee for the year was £15,889compared to £14,711 in 2005.The net investment income was therefore £75,999, an increase of £11,488 over 2005.
- No legacies were received during the year unlike the previous year when £26,500 was received from this source.
Total resources expended increased to £407,265 from a restated figure of £266,688 in 2005. These figures included the change in the provision for paying future grants, £184,487 in the last financial year. The actual figure for grants paid over the year was £160,873. While this was less than the £173,527 paid in the previous year, 2005 had been an all time record. Requests for help from the Guild showed no sign of diminishing and the Trustees anticipated that grants paid would increase steadily in future years. This very large increase in total resources expended to £407,265 from £266,688 in 2005 was largely explained by the increase in the provision for future grants. Such a large increase was unlikely to be repeated in the next few years unless the Trustees decided to increase the basic grant beyond £25 per week. The voluntary services of Trustees who help with administration and casework research together with the input of Branch Representatives of the Guild were invaluable in containing costs.
Under the Guild’s reserves policy, funds were required to cover the liability to pay grants to existing regular beneficiaries for many years to come. It was equally important that the level of total reserves should be sufficient to provide the major part of the Guild’s income over the long term. The Trustees anticipated that grants paid and administration costs would increase at a rate above inflation. It was further anticipated that, within a few years, 80% of the Guild’s income would need to be derived from investments and consequently the portfolio must continue to grow. At close of business on Wednesday 7 March 2007 the Total Fundswere valued at £2,999,791, with the FTSE100 index at 2600.
In conclusion, the Honorary Treasurer stated that in spite of the Guild’s annual deficits and the recent volatility in the investment markets, he believed that the underlying financial position of the Guild remained strong. The valued support from all sources ensured that the Guild’s valuable work could continue and expand. He commend the Financial Statements to the meeting for approval.
Mr P Lewis of BDO Stoy Hayward LLP then read the Report of the Auditors.
The adoption of the Annual Report and Financial Statements was moved by Mr E P Blackie and seconded by Mr P M Buckton. Before putting the motion to the meeting the Chairman asked if there were any questions relating thereto. There being no questions, the Chairman put the motion for the adoption of the Annual Report and Financial Statements to the meeting and declared the motion carried.
REAPPOINTMENT OF THE AUDITORS
The following motion was put to the meeting by Mr G S Mole, seconded by Mr J R Parker, and carried:-
“That the Auditors Messrs B D O Stoy Hayward LLP be re-appointed to hold office until the conclusion of the next Annual General Meeting and that the Committee be authorised to fix their remuneration”.
ELECTION OF TRUSTEES
Item 4 on the Notice of Meeting required the election of five members to the Guild Committee of Management and in this connection the Chairman made the following statement:
“Since the Notice of Meeting was published a valued Trustee of the Guild Mr Bob Anderson has died creating a casual vacancy on the Committee of Management. Mr Anderson was, in any event, due to retire as a Trustee of the Guild at the Annual General Meeting 2007 having been re-elected in 2004 for a second term of office. Therefore, the number of vacancies to be filled by election on this occasion remains at five – four retirements plus one casual vacancy. I also have to report that one of the candidates for election listed on the notice of meeting, Mr David Cross, has decided to withdraw due to ill health. This leaves a total of seven candidates standing for election to fill the five vacancies on the Guild Committee”.
At this time the Chairman thanked the retiring Trustees for their unstinting work on behalf of the Guild and wished those standing for re-election a successful outcome. The Honorary Secretary then read the result of the ballot for election as Trustee to serve on the Guild Committee of Management. Those elected were (in alphabetical order):
Mr D R Cusdin, Mr W Findlay, Mr J D Langley, Mr G S Mole and Mr J C Woodhead.
(Secretary’s Note: Mr S S Rosseter, elected Honorary Treasurer of the IMarEST at the Institute’s Annual General Meeting held on Thursday 8 March 2007, was automatically appointed an ex-officio member of the Committee of Management under the terms of Rule 6.2 of the Guild Rules 2002.)
That concluded the business of the meeting and the Chairman declared the 73rd Annual General Meeting of the Guild closed. He thanked all the members present for their attendance.
PMB
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