The trustees present their annual report and financial statements for the Period ended 30 June 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The objectives of the Charity are the advancement of education, both within the UK and overseas, in the development of shipping and seaborne trade, by the collection, collation and dissemination of relevant information and by the provision of awareness and outreach programmes. There has been no change in these during the Period.
The Charity has agreed to extend its year end, from 31 December to 2023, to 30 June 2024 in order to process with the closing down of the charity. The trustees have agreed that the current set of accounts will be the last, in doing so have donated all remaining funds to a similar charity to themselves.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The Trustees have ensured that all activities throughout the year have been in the interest of public benefit. This is evidenced by the costs incurred to maintain and develop the MIKC website so that services can be expanded to provide more detailed information to more people. This expenditure for 2024 will also include the total donated funds. These costs are detailed on page 9, and total £55,589 (2022: £417).
The Charity did not receive donations during the period, (December 2022 - £5,573).
The Continuing effects of the Covid-19 pandemic in 2021 resulted in reduced activity for the Foundation. Further, with global trade adversely affected and many businesses in the maritime community witnessing a downturn, it remained difficult to maintain subscriptions to the Foundation at historic levels. The Charity thus decided to close the charitable company down.
Net expenditure during the period amounted to £60,398 (2022: Net income £6,623). The purpose of the reserves at 31 December 2022 was to allow the Charity to continue to promote the advancement of education, both within the UK and overseas, to enrich human knowledge and understanding of the vital roles of the maritime industries and commercial shipping in the economic, social, political and cultural life in the UK and the global environment. As the charity is now closing down, this fund has now been transferred to a charity with a similar vision.
Reviewing the reserves policy
We review our reserves policy annually in conjunction with setting our budgets and reviewing progress against our strategic plans. Our reserves have now been donated to a close charity.
Level of Reserves held
At the end of June 2024 our total reserves were £0 (December 2022: £60,398), these funds are all unrestricted.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Maritime Industry Foundation is a company limited by guarantee governed by its Memorandum and Articles of Association.
The trustees, who are also the directors for the purpose of company law, and who served during the Period and up to the date of signature of the financial statements were:
The Directors of the charitable company (“the Charity”) are its Trustees for the purpose of Charity law and are collectively referred to as the Trustees. New Trustees/Directors of the Charity are appointed by the existing Trustees/Directors, such appointment being confirmed at the subsequent Annual General Meeting.
The Charity was incorporated on 1 December 2003 and registered as a charity on 20 July 2005, Charity No. 1110499. The Charity does not have a share capital and the liability of the member (INTERTANKO) since incorporation is limited to a guarantee of £10. The powers and limits of the Charity are set out in the Charity’s Memorandum of Association as amended by a special resolution dated 22 June 2005.
The Charity is administered by four Trustees as at 30 June 2024. A summary of the Trustees and Directors serving during the year is noted above. In accordance with the Articles of Association, a third of all directors will retire from office at the Annual General Meeting and being eligible may offer themselves for re-appointment.
Induction and training of Trustees is undertaken by existing Trustees to ensure full and appropriate level of understanding of the Charity by all trusted with governance.
All decisions relating to the work of the Charity are taken by the Trustees. The Trustees have to consider potential risks to the Charity when agreeing the annual budget and programme of events.
During the year, the principal activities of the Charity have been confined to routine administration, soliciting new membership income where possible and developing aspects of the Knowledge Centre.
The Foundation has also been examining its future work and reviewing the structure of the Knowledge Centre. This includes plans for the development of an expanded digital platform, the attracting of a wider range of supporters from the maritime community and outside, and expanding the resources and users of the Knowledge Centre.
The Trustees held two meetings during the year.
The Trustees have additionally been reviewing the future staffing and management support arrangements and governance structure of the Charity to ensure that the Charity is able to take on the growing range of activities and consequent increase in responsibilities. The Trustees recognise the benefits that the Charity has again received from the professional services of the General Manager, Captain Peter J. Swift, who did not take any professional fees for his services during the year (2022 - none). The Trustees had no beneficial interest in the Charity at any time during the year and were not remunerated.
The following served during the year:
Charity members:
INTERTANKO (since incorporation)
The member agrees to contribute an amount not exceeding £10 to the assets of the Charity in the event of it being wound up whilst a member and for one year after ceasing to be a member.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Maritime Industry Foundation (the charity) for the Period ended 30 June 2024.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the Period. All income and expenditure derive from continuing activities.
Maritime Industry Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Ground Floor, 1 - 7 Station Road, Crawley, West Sussex, RH10 1HT.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
It was decided at a Board meeting in June 2023, that as the charity was largely inactive it would be more beneficial for the funds held by the charity to be transferred to a charity which share the same goal with a high amount of activity. The financial period from January 2023 - June 2024 is the last financial period of the charitable company.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Income comprises members' fees and income by way of donations and gifts.
Fees, donations and gifts are allocated to the periods to which they relate, and are accounted for on an accruals basis, net of bank fees. Membership fees received in advance are treated as deferred income.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of an estimate of the proportion of time spent on those activities.
Website costs are expensed through the statement of financial activities on the basis that there is insufficient evidence on which to base reasonable estimates of economic benefits that will be generated in the period.
Governance costs relate to the general running of the Charity as a legal entity and are not connected with generating income or charitable expenditure.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including trade and other payables are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Transactions in foreign currencies are translated into sterling at the exchange rates ruling at the date of the transaction. Assets and liabilities at the balance sheet date are translated into sterling at the rate ruling at the reporting date. All resultant differences arising from the above policy are dealt with in the statement of financial activities
Legal status of the Charity
The Charity is a company limited by guarantee and has no share capital. The liability of the member (INTERTANKO) since incorporation is limited to a guarantee of £10.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There were no critical accounting estimates or judgements during the financial year.
Advancement of education in developing of shipping and seaborne trade
Advancement of education in developing of shipping and seaborne trade
Website licence fees
Computer costs
Charitable donations
Bank charges
Governance costs includes payments to the independent examiner of £1,200 (2022- £1,200) for independent examination fees, and £931 for other services provided.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the Period (2022 - none).