Minutes of the Seventy-Third Annual General Meeting
held at 1600 hours on Thursday 8 March 2007
at 80 Coleman Street, London EC2R 5BJ
The Chairman Mr D R Cusdin in the Chair
(27 Members present)
The Chairman opened the meeting by welcoming those members present.
ANNUAL REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2007
The Honorary Secretary (Mr K F Read) presented the Annual Report of the Trustees for 2007, which had been made available to members prior to the meeting. The Annual Report and Financial Statements had been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2005).
During the financial year, which ended on 30 September 2007, the Trustees considered 81 applications for assistance, an increase of 15 on the previous year. Of these, 58 were new applications while the remainder arose from home visits or from analysis of Annual Assessment forms, which regular beneficiaries were required to complete. The Trustees awarded 20 new regular grants and 2 existing beneficiaries had their grants increased. Sadly, 5 regular beneficiaries died, but in one of these cases the regular grant was still being paid to the widow. Four regular grants were discontinued because the recipients no longer needed financial assistance. Twelve applications were refused and five had been withdrawn during the assessment process. At the end of the financial year regular grants were being paid to 96 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 £25 per week, which had increased from £20 per week following the Government’s abolition of the Charitable Disregard Rule that affected recipients receiving state benefits. The Guild was again the only nautical charity to pay this level of grant. The Trustees continued to look at other ways of enhancing payments that could be made to beneficiaries.
The Christmas gift vouchers to the value of £100 previously sent to all regular beneficiaries were replaced by cash payments of £120, a move much appreciated by recipients. The award of the Christmas Boxes for the tenth year running was helped by proceeds from the Tombola and Raffle held at the Institute’s Conversazione at the Grosvenor House. The total value of grants paid during the year ended 30 September 2007 was £217,039, some £56,000 more than the previous year.
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. The Guild web pages on the IMarEST website would shortly be updated to reflect more accurately its activities and to compliment the new publicity leaflet sent to all members of the Institute last year.
The Charities Act 2006 had an impact on the work of the Committee in that the topic of governance was now a regular item of business at meetings. During the past year the Trustees reviewed the charity’s governing document resulting in proposed changes to the Guild Rules.
In common with other small charities, the Trustees had been concerned about the difficulty in finding Members of the Guild willing to serve on the Committee of Management, particularly as the present Trustees were all maturing. Therefore, the Honorary Secretary was pleased to note the number of candidates standing this year for election as trustees, albeit there being only three vacancies. Local Guild representatives were also required in a number of areas and the Chairman would be pleased to hear from those wishing to volunteer.
As usual 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, they attend a joint Merchant Navy Welfare Board and SSAFA course for caseworkers. The Trustees were assisted by the Guild’s now full time clerical assistant (Mrs Karen Starr). 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 2007, which had been made available to members prior to the meeting. In general, the format of the Financial Statements followed that of the previous year.
Firstly, the Honorary Treasurer referred to the Balance Sheet, which showed total charity funds at the year-end of £1,150,598, slightly less than the figure for 2006 of £1,186,192. He commented that a more illuminating figure was that of total assets less current liabilities, which amounted to £3,136,343. The comparable figure for 2006 was £2,998,853. The Honorary Treasurer explained that the difference between these two figures was the liability to pay grants to current regular beneficiaries for many years to come. Last year this liability was calculated as £1,812,661. However, the liability for the current year had increased by £173,084 to £1,985,745. This arose from an increase in the number of beneficiaries, anticipated increases in future regular grants and the improvements in life expectancy.
Secondly, the Honorary Treasurer drew attention to the Statement of Financial Activities, which showed incoming resources for the year of £184,475 compared to the previous year’s figure of £130,493. This welcome increase arose from a legacy of £61,000 and a further, unexpected, sum of £25,000 from the same bequest had been received in the current financial year. The principal sources of income were:-
- Donations from members and branches of the Institute, including Gift Aid, of £42,436, an encouraging increase over 2006 (£33,452)
- The proceeds from the tombola and raffle at the Institute’s Conversazione fell slightly to £3,041 from £4,093 in the previous year.
- Investment Income decreased significantly to £77,737 from £91,888 in 2006. The investment management fee for the year was £15,605 compared to £15,889 in 2006. The net investment income was, therefore, £62,132, a decrease from £75,999 in 2006.
Total resources expended increased to £462,181 from £407,265 in 2006. The major part of this increase was accounted for by the increase in actual grants paid from £160,873 in 2006 to £217,039, by far an all time record for the Guild. The additional provision for future grants also impacted on the figure for total resources expended. The voluntary services of Trustees who helped with administration and casework research, together with the input from 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. Requests for help from the Guild showed no sign of diminishing and the Trustees anticipated that grants paid and administration costs would increase steadily in future years at a rate above inflation. It was further anticipated that, within a few years, 80% of the Guild’s income must be derived from investments.
In conclusion, the Honorary Treasurer commented for the seventh successive year the Guild’s expenditure had exceeded income, with net resources expended of £277,706 compared to £276,772 the previous year. Whilst this deficit was largely offset by a net gain on investments of £242,112, there remained a net reduction in funds of £35,594. Such a reduction could be accommodated in the short term, but ultimately the funds must recover and grow.
In spite of the annual deficits and the recent volatility in the investment markets, he believed that the Guild remained financially strong and, with the valued support from all sources, the Guild’s charitable work could continue and expand. He commended 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 the Chairman Mr D R Cusdin and seconded by the Deputy Chairman Mr J C Woodhead. 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 J R Parker, seconded by Mr D B Cobb, 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 three Members of the Guild to serve as Trustees on the Committee of Management to fill the vacancies arising from those Trustees retiring at the meeting, namely:
Mr P M Buckton having completed one term in office and was eligible for re-election;
Mr J R Parker having completed two terms in office and, therefore, not eligible for re-election;
Mr G S Mole who had decided to stand down as a Trustee on this occasion.
At this time the Chairman thanked the retiring Trustees for their unstinting work on behalf of the Guild and wished those standing for election a successful outcome. The Chairman announced result of the ballot for election as Trustee to serve on the Guild Committee of Management. Those elected were (in alphabetical order):
Mr E P Blackie, Mr P M Buckton and Mr G J McKenzie.
(Secretary’s Note: Mr F B Mungo, elected Honorary Treasurer of the IMarEST at the Institute’s Annual General Meeting held on Thursday 8 13 March 2008, was automatically appointed an ex-officio member of the Committee of Management under the terms of Rule 6.2 of the Guild Rules 2002)
GUILD RULES
The Chairman informed the meeting that the Charity Commission recommended charities to review regularly their governing document to ensure that it was up to date and appropriate for the charity’s needs. As the current Guild Rules had been in force for some years (approved in 2002) the Committee appointed a working group of four Trustees to review the Rules and to make recommendations for change if considered appropriate. Subsequently, amendments to the Guild Rules 2002 were considered and approved by the Committee on 30 October 2007. These were submitted now for endorsement by the Members and the following Resolution proposing their adoption was moved by Mr P M Buckton and seconded by Mr D E Stephenson:-
'THAT the alterations and amendments to the Guild Rules as set out in the accompanying Schedule be and are hereby approved subject to any changes that the Charity Commission shall require and the Guild Committee of Management may agree.'
The Chairman then explained that the proposed changes related solely to the administration of the Guild, the majority of which were self explanatory, but drew attention to those of importance. As there were no questions arising from those Members present the Chairman put the Resolution to the meeting and declared it carried.
That concluded the business of the meeting and the Chairman declared the 74th Annual General Meeting of the Guild closed. He thanked all the Members present for their attendance
PMB
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