AMENDING REPORT FINANCIAL STATEMENTS · The Marine Conservation Society (MCS) vision is of seas fit...

1

Registered Charity No (England & Wales): 1004005

Registered Charity No (Scotland): SC037480 Registered Company No. 2550966

AMENDING

REPORT And

FINANCIAL STATEMENTS

Year ended 31 st March 2013

The Marine Conservation Society is the leading environmental charity in the UK dedicated solely to protecting our seas, shores and wildlife. It has worked successfully for over twenty five years to highlight issues of concern and threats to both marine wildlife and to the wider marine and coastal environment, and bring them to the attention of the public, media, politicians and Government agencies alike.

Marine Conservation Society Unit 3, Wolf Business Park, Alton Road, Ross-on-Wye, HR9 5NB

Tel: 01989 566017 Fax: 01989 567815 Website: www.mcsuk.org

MCS – Protecting our Seas, Shores and Wildlife

Trustees’ Report For the year ended 31 st March 2013 – continued

2

The revised accounts replace the original accounts and are now the statutory accounts. They have been prepared as at the date of the original accounts and not as at the date of the revision and accordingly do not deal with events between those dates.

The changes made to these amended accounts are in respect of a re-allocation of overhead cost in respect of the Sea Champion programme from Fundraising Costs of Voluntary Income to Operational Programme Costs. The accounts now show a true and fair view of the activities.

The directors of the charitable company are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. The Trustees present their report with the financial statements of the charitable company for the year ended 31st March 2013.

Reference and Administrative Information

Charity Name: Marine Conservation Society

Charity registration number (England & Wales): 1004005 Charity registration number (Scotland): SC037480 Company registration number:

Registered Office and Operational address:

Scottish operational address:

2550966

Overross House, Ross Park, Ross-on-Wye, Herefordshire, HR9 7US.

11a Chester Street Edinburgh, EH3 7RF

President

HRH The Prince of Wales KG, KT, GCB

Honorary Vice Presidents

Professor David Bellamy OBE, PhD, FLS, FIBiol Mr. Bernard Eaton (deceased October 2012) Sir Frederick Holliday Kt, CBE, DL, FRSE Mr. Ian Irvine FCA, FRGS, CCMI Lord Peter Melchett Baroness Nichol Professor David Nichols

Trustees

Mr M Spray, CBE Chairman Miss T Aldwin, FCCA, ACA Ms K Foster Resigned 27 March 2013 Dr E P Green, PhD Dr D J Huggett, PhD Mrs J E Mackaness, BSc Mr D Reith Resigned 3 October 2012 Mr J Ridley Mr G Robertson Mrs M Rydstrom, OBE, CCMI Mr P Hiam


3

Senior Management Team Samantha Fanshawe Chief Executive Clare Perez, ACCA Head of Finance & Administration / Company Secretary Mike Cook Head of Conservation Andy Bool Head of Fundraising Catriona Lennox Head of Marketing & Communications Auditors The Richards Sandy Partnership, Thorneloe House, 25 Barbourne Road, Worcester, WR1 1RU Bankers Barclays Bank, Leicester, LE87 2BB


4

Structure, Governance and Management Governing Document The charity is a charitable company limited by guarantee, incorporated on 23rd October 1990 and registered as a charity on 1st February 1984. It is governed by Articles of Association, having been amended following approval by the members at the EGM on 21st April 2010. In the event of the company being wound up the members are required to contribute an amount not exceeding £1. Recruitment and Appointment of Trustees The management of the Society is vested in the Trustees who are elected by the membership and act in a voluntary capacity. In compliance with the Articles of Association, Mrs J Mackaness, Dr D Huggett and Mr J Ridley, will be stepping-down by rotation as they have reached the third anniversary of their last election. Mr G Robertson, Mr M Spray and Mr P Hiam will be stepping-down by rotation as they have reached the third year of their initial appointment. All will be eligible to offer themselves for re-election at the forthcoming Annual General Meeting. Business and conservation skills are well represented amongst the Trustees. In an effort to maintain this broad skill mix Trustees are requested to provide a list of their skills and in the event of particular skills being lost to retirements, new Trustees are sought by open advertisement or individuals are approached to offer themselves for election. MCS Board of Trustees undertakes an annual review of its effectiveness and if skills gaps have been identified, new Trustees are sought to fill these gaps. There were 9 Trustees in post as at 31st March 2013 with a wide cross-functional skill base. Trustee Induction and Training Before appointment new Trustees attend a familiarisation day at the charity’s office to introduce themselves to the work of the charity and the staff and in addition attend a Trustee meeting as an observer. An induction pack has been prepared drawing information from various Charity Commission publications and this is distributed together with the Articles of Association and the latest financial statements. A Trustee Handbook is provided for each Trustee which provides current good practice guidelines in order to give guidance to Trustees on how they can contribute most effectively to the governance of MCS. All Trustees are required to sign up to a Trustees' Code of Conduct. Risk Management The Trustees actively review the major risks that the Charity faces when preparing and updating the strategic plan. The Charity has developed systems to monitor and control these risks to mitigate any impact that the risks may have in the future. A risk register has been established that is reviewed regularly and at least annually. The investment policy is to hold the majority of its investments in low risk interest-bearing cash deposits, with some additional long-term, managed investment in balanced return funds. The Trustees exercise a careful control of costs by setting an annual budget and periodically reviewing progress against it. A key element in the management of financial risk is the setting of a reserves policy and its regular review by Trustees.


5

In supporting MCS through its growth and development, the Board of Trustees has established a Finance and Investment Committee and a Strategic Planning Committee to reduce the burden on the entire Board for issues which could be addressed by an effective quorum of Trustees. Terms of reference have been drawn up for these Committees and they meet regularly as required by the developments of MCS.

Objectives and Activities

The Objects of the Company (the "Objects") are to undertake and promote for the benefit of the public the conservation, protection, improvement and ecologically sustainable management of the marine and freshwater environment including associated land, shoreline and structures.

Ecologically sustainable management means using, conserving and enhancing the community's resources so that ecological processes, on which life depends, are maintained, and the total quality of life, now and in the future, can be increased.

The Marine Conservation Society (MCS) vision is of seas fit for life – clean seas and coasts that support abundant marine life, healthy fish stocks and enjoyment for all.

MCS works towards a future when our seas are restored and full of life. Abundant natural resources will make fisheries productive and support thriving coastal communities. Beaches will be clean and free from sewage-related debris and litter, and effective nature reserves will protect important marine habitats and wildlife. People will feel a shared responsibility to cherish and respect the UK’s seas, and will understand that with that responsibility comes a right to enjoy a healthy, natural environment.

MCS’ mission is to protect our seas, shores and wildlife – now and for future generations.

We seek to achieve measurable improvements in the state of our seas, marine biodiversity and fish stocks through changes in government policy, industry practice and individual behaviours.

To achieve our aims MCS:

• Inspires this and future generations to take an active interest in the seas around them and become champions for the sea;

• Involves people in making a real difference on their coast and in their towns; • Informs and engages the public and industry on the development and promotion of best

sustainable practice; and • Influences governments on the issues affecting our seas and the policies needed to protect and

manage the marine environment in support of our vision.

MCS has championed the protection of our seas and marine life for over 25 years and as a result marine conservation is increasingly in the public eye and in the minds of those in whose hands the future of our seas lie.

Statement of Public Benefit The Trustees confirm that they have complied with the duty in Section 4, Charities Act 2011, to have due regard to the guidance issued by the Charity Commission concerning public benefit. MCS exists to protect and champion the marine and coastal environment. The charity’s main work is in promoting protection for marine wildlife, sustainable sea-fisheries and aquaculture and clean seas and beaches.


6

Each of these programmes is aimed at improving the condition of the marine environment. A healthy marine environment will supply benefits to the public, and these are sometimes called ‘marine ecosystem services’. The United Nations’ Millennium Ecosystem Assessment recognised three types of ecosystem services called provisioning, regulating and cultural. Each of these is relevant to the marine environment.

• Provisioning refers to society’s needs for the seas to supply both the wild caught and farmed fish that are an important part of our diet.

• Regulating is important for climate – the Gulf Stream warms the United Kingdom and on a global scale the oceans have absorbed roughly 50% of the manmade carbon dioxide that has been taken up by the Earth.

• Culturally the UK seas and coasts are well known for recreation, ecotourism and appreciation of natural heritage. When the marine ecosystem is healthy it supplies more of these benefits.

MCS works not just to increase the extent of these benefits, but also to make them publicly available. During 2012/13 the charity promoted interest and learning on the marine environment through its dedicated ‘Cool Seas’ outreach and education programme. In fisheries, the MCS consumer-focused campaign has reached many hundreds of thousands of customers interested in sustainability through mediums such as the Fishonline, Good Fish Guide websites, Fishonline app and the pocket Good Fish Guide. The flagship programmes of the clean seas and beaches programme, the annual Autumn Beachwatch Big Weekend, continued to attract volunteers from all walks of life and the first Big Beach Clean Up in spring provided additional opportunities for public engagement. Our Good Beach Guide website continued to be the information site of choice for thousands of beach goers interested in the quality of the water around the UK coast. Achievements and Performance Following its 25th anniversary in 2008, MCS reviewed its successes and also evaluated the most pressing threats to the marine environment for the coming 25 years, to identify the areas where MCS should focus its effort. The conclusions, as set out in the landmark publication Silent Seas, were that:

• Too little is being done to protect marine wildlife and habitats • Too many fish are being taken from the sea • Too much waste is being thrown into the sea

To address these key threats, MCS identified three core strategic conservation aims:

• Marine wildlife protection • Sustainable fisheries and aquaculture • Clean seas and beaches

This report presents the highlights and key achievements over the past year that work towards these aims, reflecting the breadth and success of MCS campaigns to protect our seas, shores and wildlife.


7

Key achievements in the period 2012/13

The past year has seen continued unprecedented levels of action and interest in support of MCS goals for marine wildlife protection, sustainable fisheries and aquaculture, and clean seas and beaches. MCS capacity to deliver on its ambitious conservation programme has continued in 2012/13. The charity has maintained its investment in the development of long-term sustainable fundraising and marketing activities to underpin future growth which was attributed to two significant restricted income streams in 2011/12. MCS continues to increase its national capacity in conservation, communications and campaigns; to establish and support a volunteer network; and to establish and maintain administrative functions that support the organisation through a period of development and growth. In the past year alone MCS:

• Inspired: o Over 15,500 children in 75 schools across the UK to learn more about its ‘Cool Seas’.

o Over 8,900 pupils to collect 179,580 plastic bottle tops for recycling into sports kits, as

part of the Bottle Champions scheme

o Over 1,500 people to take part in a march on Parliament calling for a network of Marine Conservation Zones in English seas.

• Informed:

o The public of marine conservation issues with over 4,200 features in print media, national and regional radio and TV.

o Over 160,000 consumers on sustainable seafood choices, with the MCS Fish to Eat and Fish to Avoid, Pocket Good Fish Guide, Good Fish Guide Website and IApp.

o The aquaculture industry and European Parliament on the importance of sourcing alternative sustainable feeds for farmed fish.

o The European Commission and European Parliament on incorporation of an ecosystems

approach to Common Fisheries Policy Reform.

o Over 500,000 beach users on the water quality of 754 beaches through the Good Beach Guide, allowing them to make informed choices on where to go.

• Involved:

o Over 3,500 volunteers in the UK-wide annual MCS Beachwatch litter survey collecting over 181,978 items of litter from 238 beaches.

o Over 6,000 volunteers in the first Big Beach Clean Up in partnership with Marks & Spencer, clearing over 3,500 bags of litter from 100 beaches.

o Over 40,000 people in voicing their opinion on marine protected areas through our Marine Conservation Zone campaign.

o Over 185 new Sea Champions recruited and 3000 volunteer hours given to actively support marine conservation in their local area.


8

• Influenced: o Government to change its approach to ensure it is correctly applying the Habitats

Directive to protect our European Marine Sites from damaging fishing activities

o Governments in England, Scotland and Wales to maintain support for delivering an ecologically coherent network of Marine Protected Areas

o Government to champion radical reform of the Common Fisheries Policy

o Major supermarkets, catering companies, restaurants and fish and chip shops to stop selling any fish from the MCS Fish to Avoid list, and promoted the diversification of fish consumption to more sustainable choices.

o The Turks and Caicos Islands Government to improve the management of the traditional turtle fishery there.

Thanks to the dedication and commitment of the staff and the many volunteer supporters who give their time and energy all around the country and coast, the plight of our seas is being heard and MCS is spurring action at all levels to protect our precious seas, shores and wildlife.


9

Marine Wildlife Protection The Marine Conservation Society played a key role in putting the UK Marine and Coastal Access Act 2009 and Marine (Scotland) Act 2010 in place, and is now equally committed to ensuring that the provisions within these are properly implemented. One of the most significant parts of this legislation to be implemented to date is the process of establishing a network of Marine Protected Areas (MPAs) across the UK, which is an important way of helping Britain’s marine wildlife to recover. The term ‘Marine Protected Areas’ refers to many different types of site designation and includes European Marine Sites such as Special Areas of Conservation and Special Protection Areas, and Marine Conservation Zones (in England and Wales). Throughout 2012, MCS has campaigned in England, Scotland and Wales to gain better protection for our seas through the MPA processes in these countries. In England, Defra consulted on a first tranche of 31 Marine Conservation Zones (MCZs) drawn from the 127 sites identified by a stakeholder-led process. MCS called on government to designate an ecologically coherent network comprising of proposed MCZ sites within a reasonable timeframe. Through advocacy, lobbying and public engagement MCS mobilised thousands of members of the public to show support for a full network generating over 40,000 pledges, over 4,000 consultation responses and the Marine Conservation Zone March on Westminster where we were joined by over 1,500 supporters and Hugh Fearnley-Whittingstall, presenter of Channel 4’s Fish-Fight series. The Scottish MPA project started in early 2011, with five stakeholder workshops where MCS played a prominent role in each. MCS submitted seven third party MPA proposals and successfully pushed for greater coverage of sea lochs and of threatened/declining features, particularly flameshell beds and burrowed mud habitat. Following a successful MCS MPA pledge hand-in and Scottish Parliamentary advocacy partners, including appearance before the Rural Affairs, Climate Change and Environment Committee enquiry into marine matters, MCS and partners ensured all 33 MPA proposals identified by this process are being taken forward to consultation in 2013. MCS in Scotland continues to lead the successful www.savescottishseas.org coalition. In Wales, the top down approach adopted by the Welsh Assembly Government to establish a few Highly Protected MCZs caused a significant response from those opposed to the suggested locations. Through advocacy and outreach MCS championed the need for Highly Protected sites and secured a place on the Stakeholder Focus Group formed to advise the minister on how to progress. MCS also gave evidence to the National Assembly for Wales in its review of Marine Policy. MCS continued to work to ensure that the UK implements the Marine Strategy Framework Directive as it requires Member States to achieve Good Environmental Status for their seas. MCS took the lead on a joint NGO response to the consultation, drawing on its expertise in fisheries and pollution as well as biodiversity. MCS also continued to sit on the Marine Management Organisation’s Stakeholder Focus Group for marine planning and licensing and input to development of the East Marine Plan. MCS, along with colleagues from ClientEarth, continued to challenge Defra and the Marine Management Organisation to ensure effective implementation of the EC Habitats and Birds Directive and protect European Marine Sites from damaging activities. In July 2012, following years of lobbying, MCS finally received acknowledgement that Defra would be changing its approach to protecting the most vulnerable habitats from damage. MCS has taken up its place on the Defra Implementation Group to ensure that this change in approach is translated into protection at a local level and work by the Inshore Fisheries Conservation Authorities and Marine Management Organisation in developing byelaws to protect sites.


10

MCS continues to co-ordinate the Seasearch project to train volunteer divers to gather marine habitat and species data throughout the UK and 2012 was another active year, with over 1,850 site records logged. Highlights of the programme included data from all proposed MCZs in England submitted to Defra/Natural England in November and the production of 16 Seasearch Reports made available online. MCS continued its work on the UK Biodiversity Action Plans for the basking shark, marine turtles, pink seafan and fanshell for which the charity is the lead partner. MCS further developed and promoted the reporting scheme for public sightings of turtle, jellyfish and basking sharks in UK waters and features in national, regional and local press and radio throughout the summer. The charity worked with partners at the University of Exeter to publish a paper on the first 20 years of Basking Shark Watch data, and also began analysis of the first eight years of jellyfish survey data for publication in 2013. MCS overseas work focused on areas of conservation where UK interests were involved. In the UK Overseas Territory of the Turks & Caicos Islands (TCI), the MCS Turks and Caicos Islands Turtle Project completed presented its recommendations to the recently-elected TCI Government. The project is a partnership project between, the UK Natural Environmental Research Council working with the TCI Government, the University of Exeter and Duke University. As well as biological sampling work to better understand the turtles and the fishery, the project also employed cutting edge stakeholder engagement to design contemporary management recommendations with fishermen. The project recommendations were accepted and approved by the TCI Government in March 2013. Building on this success, MCS completed a Darwin Challenge Fund supported scoping study to prepare for the submission of a larger proposal in September 2013 that will describe a broader project that employs the TCI Turtle Project methods to find solutions for other marine conservation issues in the TCI. Sustainable Aquaculture & Fisheries The European Commission reports that more than 72% of EU fish stocks are overfished against a global average of 28%. In 2008, only 8 out of a total of 47 stocks around the UK were in a healthy state. As a result, the number of fish being caught is inevitably declining and now half of all fish for human consumption is raised on farms. Against this background both wild-capture and aquaculture production remained priorities for MCS action. The way that farmed fish are fed and raised creates a number of conservation issues. Salmon and trout, which are both farmed in the UK, and warm-water prawn, sea bass and bream are all carnivorous species that are popular with UK consumers and depend on having fish oil and fishmeal in their diet, originally sourced from wild fish. About a third of all wild-capture fisheries are used to make non-human food, a large proportion for farmed fish to eat. New sources of non-marine oil and non-fish protein based diets require development and promotion to alleviate this problem, and in response MCS has formed partnership programmes with fish farmers, feed manufacturers and retailers to promote and support development of alternative feeds. During the past year, MCS continued to play a key influential role as part of an international panel under the auspices of the International Fishmeal and Fish Oil Organisation (IFFO) in shaping an international standard to assess the responsible sourcing and production of fishmeal and fish oil. MCS was the only NGO on the IFFO certification committee, ensuring the application of this standard was rigorous and of environmental benefit. To date approximately 40% of reduction fisheries are certified as responsible by International Fishmeal and Fish Oil Organisations (IFFO) standards. Our engagement with the Global Aquaculture Alliance (GAA) was further developed, with attendance at the GAA Standards Oversight Committee to influence the development and application of new and existing production standards and through an idea conceived by our Aquaculture Officer an innovation award was devised and subsequently launched at the annual GAA conference. As declines in fish stocks continue, and public awareness grows, the MCS Fishonline and Good Fish Guide websites and the MCS pocket guide, including the Fish to Eat and Fish to Avoid, have become the UK’s key source of information on sustainable seafood.


11

The Fishonline and Good Fish Guide websites provide advice to UK consumers and industry on over 150 species of seafood, giving a rating of 1 to 5 dependent on the relative sustainability of different stocks and fishing or farming methods used for each species. To simplify a complex issue and help consumers make sustainable seafood choices, MCS also publishes a Pocket Good Fish Guide, clearly listing the Fish to Eat and Fish to Avoid, which is widely used by the public, chefs and retailers. Over 150,000 Pocket Good Fish Guides were distributed to members of the public and a further 15,000 were downloaded from the MCS website. The reform of the Common Fisheries Policy (CFP) is at a crucial stage and MCS has been working to ensure that it protects our fish stocks both economically and environmentally. Alongside other environmental organisations MCS has lobbied for the reform to prioritise ecological sustainability and be evidence led with fishing activity set at sustainable levels that should not be exceeded. MCS has called for a policy that ensures stocks are managed, to restore them to levels which can be sustainably exploited; an end to the wasteful practice of discarding and minimises bycatch; addresses the issues of over capacity and ensures that resources are fairly distributed and encourages environmental improvements. Aquaculture has also been addressed in the draft CFP proposals and MCS has called for the inclusion of commitments to develop aquaculture that do not rely on, or lead to, overexploited feed fisheries and protects the environment upon which it relies. In Wales MCS gave evidence to the National Assembly for Wales review on the CFP. As an Executive Committee member of the North Western Waters Regional Advisory Council (RAC), MCS has increased its influence in regional fisheries management discussions and provides a platform to contribute to the stakeholder advice given by the RACs to the reform of the CFP. In Scotland, MCS has been pushing for sustainable inshore fisheries management and successfully called for a social, economic and environmental review of scallop dredging to be carried out in 2013. MCS is working on international aspects of sustainable fisheries, especially in relation to trade and tourism. Work continued on the Darwin Initiative funded project ‘Managing coral reef fisheries for biodiversity, ecosystem and economic benefits’ (managed by MCS in collaboration with Marine Research Centre, Maldives). Work continued on the programme in the Tun Sakaran Marine Park on ‘Protection and regeneration of coral reefs threatened and degraded by destructive fishing’, funded by the BBC Wildlife Fund. The aims of the project are to a) eliminate fish blasting through a combination of education, enforcement and community engagement and b) involve local communities in reef regeneration projects and demonstrate how damaged reefs can be helped to recover.

Clean Seas and Beaches

The MCS Beachwatch and Good Beach Guide campaigns are the authoritative voice on how litter and sewage affect Britain’s seas and beaches and how individuals, Government and industry must act to reduce pollution around our coastline. The flagship for our marine litter work, Beachwatch Big Weekend continued to deliver staggering results. Over 3,500 volunteers supported events at 238 beaches around the United Kingdom. Over the weekend this army of volunteers collected 181,978 litter items with an average of 2,007 items of litter per km of beach. We welcomed our President, HRH The Prince of Wales, to a beach clean event in Northumberland in July 2012.


12

The data on litter quantities, types and sources gathered by MCS Beachwatch volunteers is used at national and international levels and MCS continued to lobby the UK Government and devolved administrations to take action on the issue. In Scotland, MCS has a place on the Scottish Government’s Marine Litter Strategy Steering Group and provided detailed advice on the proposals for an effective strategy that the Scottish Government has committed to produce in 2013. In England we engaged with Defra regarding the MSFD to progress the definitions for the descriptors that will set the UK’s targets for Good Environmental Status (GES) in relation to marine litter. MCS aims to tackle the most common or hazardous items of litter through dedicated campaigns, including a campaign to ban balloon and sky lantern releases, both of which can cause harm to wildlife. This campaign has made progress in Wales where a petition was launched to the Welsh Government calling for the ban and a partnership was established between MCS, Keep Wales Tidy and Cardiff City Council to ask schools in the area to pledge to avoid releases. Across the UK, MCS with the help of its supporters, encouraged many event organisers to change plans for balloon releases and celebrate in other ways instead. On 1st October 2012, the Welsh carrier bag charge was a year old, and has proved a great success, with bag usage decreasing by up to 90%. MCS was instrumental in persuading the Welsh Government to take this step, after giving evidence to the Environment and Sustainability Committee on the damage plastic bags can do to wildlife in the marine environment. MCS also gave evidence to the Northern Ireland executive and Scottish Government. Northern Ireland will bring in a levy on plastic bags in April 2013 and Scotland has committed to a levy in 2014. This continues to highlight a lack of one in England. MCS in Scotland successfully encouraged 150 responses in support of a carrier bag levy to the Scottish Government’s ‘Resource Efficiency’ consultation during summer 2012. MCS has published an annual Good Beach Guide since 1987, and now provides online information on the water quality and sewage discharges at over 750 UK beaches to help people decide where and whether to bathe. The campaign has acted as a key driver for investment in sewage treatment and improved water quality standards. In May 2012, the 25th anniversary of the MCS Good Beach Guide was marked by an increase in the number of UK beaches recommended to 516 out of 754 tested for water quality. New higher standards will come into force in 2015 and there are still concerns regarding the impact of discharges from Combined Sewer Overflows (CSOs). MCS has input to a number of initiatives to support national and regional improvements in water quality including the Cleaner Seas Forum in England; Good Beach Summit in Northern Ireland, Dwr Cymru’s Independent Environment Advisory Panel; and Turning Tides Partnership in the North West. Education and Outreach Involving and inspiring young people to take an active interest in marine life and protection of our seas is the key to the long-term success of our campaigns. The MCS Cool Seas Roadshow featured life-sized marine animal models and tailored resources for teachers and children. There was also the first tour of new Cool Seas Puppet Roadshow, with the Lempen Puppet Theatre and their interpretation of the ‘Fishermen and the Pearl’ story. These highly visual and memorable road shows visited 75 schools and events throughout the year, and reached over 15,000 children throughout the UK. A virtual Cool Seas Roadshow - an interactive website – was launched to engage and enthuse an even wider audience of young people about our seas. The Bottle Champions recycling challenge in partnership with Plastics 2020 continued with schools encouraged to collect and recycle plastic bottles, in return for which they can earn a sports kit made from recycled plastic; 39 schools participated and pupils saved an incredible 179,580 bottle tops from going to landfill.


13

The Cool Seas Roadshow is part of a wider outreach programme to connect people with the rich and varied biodiversity of our seas and shores. MCS has been developing programmes to increase its reach to audiences in Wales and Scotland, where dedicated staff are enthusing local communities to take an active part in protecting their marine and coastal heritage through talks, volunteer events and surveys. Thanks to funding from Marks & Spencer through the Forever Fish partnership, our Sea Champions volunteer programme went from strength to strength during the year. By March 2013, 221 volunteers had become MCS Sea Champions and:

• delivered 5,000 volunteer hours of support for MCS • attended 160 community outreach events • engaged with 15,000 members of the public at events • collected almost 7,000 pledges of support for our MCZ campaign • recruited 217 new members

MCS’ reach to people throughout the UK has continued to grow and the charity’s activities were reported in a record number of features in the press and broadcast media (2012-13: 4,296, 2011-12: 3,758), with an estimated audience of 318 million. MCS continued to provide expertise and comment for a wide range of broadcast programmes, including BBC’s The One Show, Newsround, Springwatch, Autumnwatch and Channel 4’s Fish Fight series. MCS’ online presence continued to attract in excess of 100,000 unique visitors per month, across its four websites. Our social networking activities have been especially successful with the number of followers on both Facebook (13,083) and Twitter (9,771) almost doubling again over the past year. As well as producing the quarterly magazine for members, a regular e-newsletter was sent to nearly 23,000 supporters, with very high readership levels for the sector.


14

Financial Review During the year the Charity raised £1,815,695 (2012 - £4,879,239) from the general public, government agencies, corporate and charitable trust donations and corporate sponsorship to carry out the programmes mentioned under Achievements and Performance. £2,655,491 (2012 - £2,458,100) was expended in the current year. As shown in the restricted funds column in the Statement of Financial Activities, £511,894 (2012 - £3,964,692) of income was restricted for specific projects and the expenditure on those projects was £2,070,879 (2012 – £2,175,759). MCS accounts continue to show the significant grant it received from the Tubney Charitable Trust in 2011 which it is spending across a 5 year period. The purpose of this fund is to undertake activities to significantly increase MCS sustainable income base. This income generation is expected to take a number of years to develop and expenditure is therefore restricted accordingly. As MCS uses this grant to continue to build its capacity in this area, MCS remains dependent upon securing unrestricted funding for its work. £1,303,801 (2012 - £914,548) was raised with no restrictions through fund-raising activities and donations. Unrestricted charitable expenditure of £584,612 (2012 – £282,341) was used to maintain restricted conservation programmes in the year across a range of projects as detailed in note 15 to the financial statements. Our thanks to all who gave their time and money to the Charity in the year. Investment Policy The investment policy is to hold the majority of investments in low risk interest-bearing cash deposits where possible, having regard to the liquidity requirements of the charity with the aim of achieving a better return than inflation. The rate of return achieved in 2013 was 1.85% (2012 – 1.85%) which is below the rate of inflation as measured by the consumer prices index of 3% and is due to the low base rate during the year and the high inflation rate. In 2011 MCS Trustees invested £500,000 in a long term charity investment account with HSBC in order to make best use of the investment opportunities for the charity reserve. At 31 March 2013 the market value of this fund was £567,563 (2012 - £497,879). Reserves Policy The reserves are required to meet the working capital requirements of the charity and to allow continued funding of a project in the event of grant funding not being immediately available, until further funding can be secured. The Trustees aim to hold general reserves, excluding those represented by fixed assets and the specific designated funds detailed in note 15, sufficient to cover three to four months’ operating costs. Budgeted expenditure for 2013/14 is circa £2.6m and Trustees believe that Charity reserves of £800,000 are sufficient to support the current scale of activities and provide a firm basis for the future. Any unrestricted reserves held in excess of the reserves policy are planned to be expended as part of the 2011-2016 five year strategy.


15

Plans for Future Periods Organisational development MCS has achieved many successes towards its vision of clean seas and beaches, sustainable fisheries and marine life protection. MCS is considered by many to punch well above its weight, with an excellent reputation for raising awareness about marine issues, informing and advising Government and industry on marine policy and for engaging the public in practical marine projects and surveys. However, as we approach our 30th anniversary, the challenges that our seas face now and in the next 30 years are ever increasing as demand for natural resources rises with populations. In response, MCS must promote change on a much wider scale through effective communications and influential campaigning. MCS voice must be stronger and wider reaching if the state of our seas, marine biodiversity and fish stocks are to be measurably improved. Investment in fundraising, marketing, communications, membership recruitment and retention is seen as vital to establishing the sustainable sources of income that will allow MCS to support and further develop our conservation programmes to address the key threats to marine biodiversity in UK waters. To support these important developments and with the support of a major restricted grant from The Tubney Charitable Trust, MCS developed a five-year Business Plan which aims to achieve the following over the period 2011-2016:

• Increase our regular annual income from £1 million in 2010/11 to an estimated £2.2 million per annum by 2016.

• Increase MCS profile and supporter base and translate this into both income and action for marine conservation.

• Increase our impact and influence on key marine conservation issues. • Develop internal administration and human resource capacity, policies, processes and practices

to support the charity and staff throughout a period of sustained growth and change. The grant from The Tubney Charitable Trust allows MCS to invest in the future growth and development of the charity, to increase its effectiveness and ultimately be able to deliver on its vision of abundant marine life, sustainable fisheries, and clean seas and beaches. MCS has continued to test various channels for membership acquisition since 2011 and as a result has seen a positive increase in membership with 11% growth over two years. Given the current economic climate and impacts on charity giving, this reflects the potential for growing MCS supporter base with continued investment. It is predicted that the investment being made to develop our unrestricted funding streams will take a number of years to fully impact on our income generation; therefore securing unrestricted funding will remain a vital aspect of our funding strategy in order to ensure our continued delivery of core conservation programmes. MCS will be relocating its head office in 2013 to modern energy and space efficient premises, ensuring that resources on overheads are minimised whilst providing a high standard working environment for staff.


16

Conservation programmes The MCS Silent Seas publication highlighted the most pressing threats that MCS believes face our seas. Too many fish are being taken from the sea, too much waste is being dumped into the sea and too little is being done to protect our precious marine wildlife and habitats. In 2013/14 MCS will run three key conservation programmes that promote solutions to these threats and inform, involve and influence all those who share responsibility for the marine environment: Marine wildlife protection MCS will focus on ensuring that legislation to protect our marine environment at both UK and European level is implemented effectively to provide the protection for marine wildlife and sustainable management of our seas that they promise. MCS work will include a focus on championing the establishment of a network of marine protected areas and influencing policy guidance to implement marine spatial planning and fisheries management. The charity will also continue to increase its knowledge and understanding of the diversity and range of species and habitats to inform effective protection measures. In the period 2013-2014 MCS will: • Lobby for and build extensive public support for the designation and effective protection of proposed

MCZs in England, Wales and the strongest MPA network in Scotland; • Work in partnership with the Seasearch network of recreational divers to gather and utilise data to

support the designation of the proposed MPAs; • Secure funding for supporting capacity to work at a local level to better understand and influence the

issues of MPA designation and management; • Influence the European Commission, Government and the devolved administrations, the statutory

nature conservation agencies and their regional projects to ensure MPA networks are ‘ecologically coherent’ and receive the level of protection needed for UK marine habitats to recover and thrive;

• Influence the Government, the devolved administrations and the European Commission to prevent potentially damaging developments or fishing from taking place within existing marine protected areas;

• Influence Government and the devolved administrations to ensure effective implementation of the UK Marine and Coastal Access Act 2009 and Marine (Scotland) Act, including more sustainable use of our seas through Marine Planning;

• Work in partnership with ClientEarth to critically assess the laws and Directives that apply to UK waters to identify how effective environmental regulation can be better achieved;

• Work with the UK Government as it transposes and implements the Marine Strategy Framework Directive to ensure the targets set for achieving ‘Good Environmental Status’ are fit for purpose;

• Gather, compile and publicly report on sightings of species including marine turtles and basking sharks for which we are UK Biodiversity Action Plan lead partners;

• Work with the Seasearch network of volunteer survey divers to compile records of sightings of rare and vulnerable species and habitats; and

• Call for surveys and monitoring of marine habitats and species to be undertaken as a part of strategic environmental assessment, environmental impact assessment and preparations for the introduction of marine planning.


17

Sustainable aquaculture and fisheries MCS work to achieve sustainable aquaculture and fisheries will be delivered through initiatives focusing on a sustainable seafood programme for consumers, influencing development of sustainable aquaculture standards and practices, particularly in relation to fish meal, and influencing European fisheries policy and management. In the period 2013-2014 MCS will: • Review the stock status, capture methods and farming practices for all relevant fish and shellfish

species sold in the UK; • Review our methodology for rating seafood to ensure it is robust and transparent; • Publish information through the Pocket Good Fish Guide, IApp and websites on the relative

sustainability of fish available to UK consumers, including lists of Fish to Eat and Fish to Avoid; • Lobby and advise UK supermarkets, retailers and suppliers to adopt sustainable sourcing policies

that ensure no fish from MCS Fish to Avoid list are sold as well as undertaking a supermarket survey;

• Work with the International Fish Meal and Fish Oil Organisation to further develop the responsible supply standard and encourage its uptake within the aquaculture industry;

• Work with business, governments and industry at the national and international level to ensure that the marine environment is an integral part of aquaculture policy development;

• Encourage the development and adoption of rigorous production standards for all farmed fish available in the UK;

• Influence the reform of the Common Fisheries Policy, and its subsequent implementation, to ensure that wild-capture fisheries and aquaculture are managed within environmentally sustainable limits.

Clean seas and beaches MCS work to achieve clean seas and beaches will be delivered through the Beachwatch project and specific litter campaigns, through the Good Beach Guide publication and through influencing better controls on combined sewer overflows. In the period 2013-2014 MCS will:

• Conduct the annual Beachwatch Big Weekend volunteer litter survey and publish the results of the survey to inform all stakeholders of the actions needed to reduce litter at source;

• Conduct the second UK-wide Big Beach Clean Up in partnership with Marks & Spencer as part of the Forever Fish partnership;

• Support the 400+ beaches who also take part in the quarterly beach litter survey scheme; • Influence and inform government and devolved administrations to act on commitments to

produce marine litter action plans; • Establish initiatives to reduce the key items of commonly occurring or hazardous litter ; • Engage MCS members and warm contacts in consultations such as the Marine Litter Strategy

consultation- in Scotland and the MSFD Marine Litter measures consultation in the UK • Continue to lobby the UK government to bring in a carrier bag levy in England through the Break

the Bag Habit campaign group • Continue to lobby manufacturers to take out micro beads from personal care products as part of

the Beat the Micro bead campaign group • Continue to sit on the OSPAR and MSFD litter technical sub group to ensure that the NGO voice

is considered at an EU and UK level • Extend the angling litter initiative from Pembrokeshire to the Gower peninsular. • Build upon the links made in Northern Ireland to raise the profile of MCS and the issues of water

quality and litter;


18

• Review water quality standards at all UK beaches and update the Good Beach Guide website, highlighting those beaches with excellent water quality and those where sewage pollution continues to pose a public health risk;

• Campaign for the systemic mapping and monitoring of combined sewer overflows at the coast and the improvement of all sewage outfalls found to be polluting beaches;

Outreach, education and engagement MCS aims to reach a much wider audience over the coming year to inspire interest, understanding and active involvement in marine conservation initiatives and influence changes in Government policy, industry practice and individual behaviour in support of its conservation goals. In the period 2013-2014 MCS will:

• Review its education provision to shape its delivery in the future. • Develop a stakeholder engagement strategy that sets out how MCS can be more effective in its

engagement and influence of key stakeholders in support of our conservation objectives.


19

Trustees’ Responsibilities in relation to the Finan cial Statements Company law requires the Trustees to prepare financial statements each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company as at the end of the financial year and of its surplus or deficit for that period. In preparing those financial statements, the Trustees are required to: 1. Select suitable accounting policies and then apply them consistently; 2. Observe the methods and the principles in the Charity SORP 3. Make judgements and estimates that are reasonable and prudent; and 4. Prepare the financial statements on the going concern basis unless it is inappropriate to assume that

the charitable company will continue on that basis. The Trustees are responsible for maintaining proper accounting records that 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware;

- there is no relevant audit information of which the Charitable Company’s Auditors are unaware; and

- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Fixed Assets The movements in Fixed Assets during the year are set out in note 10 to the financial statements. Auditors The Richards Sandy Partnership is deemed to be reappointed in accordance with Section 487(2) of the Companies Act 2006. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and the Statement of Standard Accounting Practice “Accounting and Reporting by Charities” (SORP) issued in March 2005. By order of the Board of Trustees: T Aldwin M Spray Treasurer Chairman 4 December 2013

20

Independent Auditor’s Report to the Trustees and Me mbers of Marine Conservation Society We have audited the revised financial statements of Marine Conservation Society for the year ended 31 March 2013 which comprise the revised Statement of Financial Activities, the Balance Sheet and the revised related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made exclusively to the members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the members and 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, its members as a body and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully in the Trustees’ Responsibilities Statement set out on page 19, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts. Our responsibility is to audit and express an opinion on the revised financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the revised financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the revised Trustees’ Annual Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the revised financial statements: • give a true and fair view of the state of the charitable company’s affairs as at 31 March 2013 and

of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice (applicable to smaller entities); and

• have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

21

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the revised Trustees’ Annual Report for the financial year for which the revised financial statements are prepared is consistent with the revised financial statements. Matters on which we are required to report by excep tion We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: • the charitable company has not kept proper and adequate accounting periods or returns adequate

for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit ; or • the trustees were not entitled to prepare the financial statements in accordance with the small

companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report.

H N Painter JP,B.Sc.,F.C.A. (Senior Statutory Auditor) For and on behalf of The Richards Sandy Partnership Limited, Statutory Auditor Thorneloe House 25 Barbourne Road Worcester WR1 1RU

The Richards Sandy Partnership Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

22

Marine Conservation Society

Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 st March 2013

Unrestricted Funds

Restricted Funds 2013 Total 2012 Total

£ £ £ £

Notes

Incoming resources

Incoming resources from Generated

Funds

Voluntary Income

Subscriptions and fees receivable

217,290 - 217,290 206,492

Donations, legacies, appeals and

royalties 2 994,681 209,156 1,203,837 1,202,485

Activities for generating funds

Commercial trading operations 3 2,854 - 2,854 3,369

Investment Income

51,907 - 51,907 44,588

Incoming resources from Charitable Activities

Educational and promotional income

1,481 23,349 24,830 25,904

Grant Income

35,588 279,389 314,977 3,396,401

Total Incoming Resources

1,303,801 511,894 1,815,695 4,879,239

Resources expended

Cost of generating funds

Fundraising costs of voluntary income

and grant income 4 168,488 107,525 276,013 298,193

Commercial trading operations 4 - - - 1,132

Costs of generating and servicing

subscriptions 4 27,646 137,045 164,691 279,214

Charitable activities

Educational and promotional costs 4 174,897 132,417 307,314 343,904

Operational programmes 4 169,755 1,693,892 1,863,647 1,510,439

Governance Costs 4 43,826 - 43,826 25,218

Total resources expended

584,612 2,070,879 2,655,491 2,458,100

23


Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 March 2013 (continued)

Unrestricted Funds


£ £ £ £

Net (outgoing)/incoming resources for

the year before transfers

719,189 (1,558,985) (839,796) 2,421,140

Gains/(losses) on listed investments 11 60,276 - 60,276 14,348

Gains/(losses) on foreign income

6,874 - 6,874 -

Gross transfers between funds 15 (739,525) 739,525 - -

Net movement of funds in year

46,814 (819,460) (772,646) 2,435,488

Reconciliation of funds

Total funds brought forward

1,146,869 2,543,363 3,690,232 1,254,744

Total Funds Carried Forward

1,193,683 1,723,903 2,917,586 3,690,232

The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.

24

Marine Conservation Society Balance Sheet

as at 31 st March 2013

2013 Charity

2012 Charity

£

£

Notes

Fixed Assets

Tangible assets 10 6,842 6,836

Investments 11 567,763 497,879

574,605 504,715

Current Assets

Debtors 12 324,862 378,363

Cash at bank and in hand 2,270,709 3,052,171

2,595,571 3,430,534 Creditors: amounts falling due within one year 13 (250,590) (245,017)

Net Current Assets 2,342,981 3,185,517

Total Assets Less Current Liabilities 2,917,586 3,6 90,232

Funds

Unrestricted funds:

General reserves 15 1,193,683 1,146,869

Designated funds - -

1,193,683 1,146,869

Restricted funds 15 1,723,903 2,543,363

2,917,586 3,690,232 The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 and the Financial Reporting Standard for Smaller Entities (effective April 2008) relating to small companies. Approved by the Board of Trustees on 4 December 2013 and signed on its behalf by T Aldwin M Spray Treasurer Chairman Company Number: 2550966

clare.perez

Typewritten Text

clare.perez

Typewritten Text

clare.perez

Typewritten Text

clare.perez

Typewritten Text

clare.perez

Typewritten Text

clare.perez

Typewritten Text

clare.perez

Typewritten Text

clare.perez

Typewritten Text

2

clare.perez

Typewritten Text

clare.perez

Typewritten Text

clare.perez

Typewritten Text

clare.perez

Typewritten Text

clare.perez

Typewritten Text

clare.perez

Typewritten Text


Notes forming part of the financial statements for the year ended 31 st March 2013 - continued

25

1. Principal accounting policies (a) Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, and follow the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP) issued in March 2005 and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

(b) Incoming resources Income is recognised in the period in which the charitable company is entitled to receipt. Income is deferred only when the charity has to fulfil conditions before becoming entitled to use such income or where the donor has specified that the income is to be expended in a future period. Life subscriptions are accounted for in the year in which they are received. 1. Commercial Trading Activities

Income from commercial activities is included in the period in which the charity is entitled to receipt.

2. Donations and Grants Income from donations and grants, including capital grants, is included in incoming resources when it is receivable, except as follows:

• When donors specify that donations and grants given to the charity must be used in future

accounting periods, the income is deferred until those periods. • When donors impose conditions which have to be qualified before the charity becomes entitled to

use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.

When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable. 3. Legacies Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

(c) Resources expended Expenditure is included when incurred on an accruals basis. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of resources.

(d) Fundraising costs of voluntary income Fundraising expenditure comprises costs incurred in encouraging people and organisations to contribute financially to the charity's work through donations and grants. This includes a proportion of salaries and overhead costs of the staff who promote fund raising. Costs of generating and servicing membership subscriptions These represent costs incurred in encouraging individuals to subscribe to the charity and the servicing of those individuals including provision of a members’ magazine. Educational and Promotional costs These represent costs incurred in promoting the objects and activities of the charity to varied audiences through, for example, events, internet and provision of information.



26

Operational programme costs These represent costs incurred in delivering the objects of the charity through a range of conservation programmes including costs of salaries and overhead costs of the staff who promote the charity’s objectives. Governance costs These represent costs incurred in ensuring the charity complies with governance requirements. An analysis is provided at note 4. Support costs Support costs are those costs, whilst necessary to deliver an activity, do not themselves constitute the output of the charitable activity. These have been allocated to activities on the basis of the number of full time equivalent staff employed within each activity.

(e) Tangible fixed assets - All assets costing more than £1,000 are capitalised. - Depreciation is provided at the following rates in order to write off each asset over its estimated useful life: - Motor vehicles – 25% on cost - Fixtures and fittings – 15% to 20% on cost - Computer equipment – 33.3% on cost - Telephone equipment – 25% on cost.

(f) Investments Listed investments are valued in the Balance Sheet at market value. The realised gain/loss in the year is the difference between the amount at which the investment was valued at the beginning of the year, or cost if purchased during the year, and sale proceeds. The net gain/loss on revaluation and disposal of investments is shown in the Statement of Financial Activities.

(g) Pensions Contributions in respect of the charity’s defined contribution pension scheme are charged to the Statement of Financial Activities for the year in which they are payable to the scheme.

(h) Operating leases Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

(i) Stocks Stocks are valued at the lower of cost or net realisable value.

(j) Irrecoverable VAT Irrecoverable VAT is written off against the costs to which it relates.

(k) Funds accounting Funds held by the charity are: Unrestricted general funds – these are funds that can be used in accordance with the charitable objects at the discretion of the Trustees. Designated funds – these are funds set aside by the Trustees out of unrestricted general funds for specific purposes or projects. Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements (note 15).



27

2. Donations, legacies, appeals and royalties

Unrestricted Funds


£ £ £ £

Legacies 77,569 - 77,569 110,660

Donations - trusts and companies 92,365 24,569 116,934 152,875

Donations - individuals 88,608 - 88,608 82,654

Royalties, appeals and other fundraising income 736,139 184,587 920,726 856,296

Total 994,681 209,156 1,203,837 1,202,485

The restricted royalties and appeals income represents income received from individuals and organisations,

including gift aid where appropriate:

£

Adopt-a-Turtle, part of the Turtle programme, totalling 35,224

Sea Champions Initiative, totalling 140,985

Fisheries programme, totalling 4,241

The Scottish campaign, totalling 323

Biodiversity programme, totalling 454

National Seasearch programme, totalling 530

The Welsh campaign, totalling 532

TCI Turtle project, totalling 276

Beachwatch programme, totalling 2,022

184,587

3. Commercial trading operations 2,013 2012

£ £

Marine Conservation Society 2,854 3,369



28

4. Total resources expended

Fun

drai

sing

Cos

ts o

f V

olun

tary

Inco

me

and

Gra

nt In

com

e

Com

mer

cial

Tra

ding

C

osts

Cos

ts o

f Gen

erat

ing

and

Ser

vici

ng

Sub

scrip

tions

Edu

catio

nal a

nd

Pro

mot

iona

l Cos

ts

Ope

ratio

nal

Pro

gram

me

Cos

ts

Gov

erna

nce

Cos

ts

Tot

al 2

013

Tot

al 2

012

£ £ £ £ £ £ £ £

Costs directly allocated to activities

Staff Costs 155,824 - 79,433 177,154 1,158,618 26,053 1,597,082 1,289,734

Expenses and Travel 5,921 - - 3,150 120,593 1,604 131,268 84,119

Other Direct Costs 52,421 - 59,411 52,686 305,224 6,130 475,872 739,727

Support costs directly allocated to activities

Staff Costs 32,500 - 10,000 37,500 134,500 5,000 219,500 131,750

Legal and Professional - 250 250 8,800

Unrecovered VAT 3,976 - 3,976 5,784 21,690 723 36,149 31,452 Communication, premises and office expenses (see below) 24,720 - 11,220 30,093 119,473 3,948 189,454 160,592 Depreciation (not programme assets) 651 - 651 947 3,549 118 5,916 11,926

276,013 - 164,691 307,314 1,863,647 43,826 2,655,491 2,458,100

The Tubney Development Grant is a restricted fund intended to support MCS development and expansion over the next few years. Expenditure incurred as part of the grant has been allocated to the relevant resources.

Support cost recovery: where a funding grant is awarded which allows the recovery of support costs, these are recovered directly against the individual functions. The amount recovered in the year was £57,443 (2012 - £71,580).

Governance costs include £5,000 (2012 - £4,500) for audit fees .



29

5. Net incoming resources for the year

This is stated after charging:

2013 2012

£ £

Depreciation 5,916 11,926 Auditor's remuneration 5,000 4,500 Equipment rental 5,212 5,642 Trustees' Liability insurance 1,326 1,276 Property rental 52,986 58,642 Property rental included in restricted funds expenditure 12,500 6,250

6. Staff costs and Trustees' remuneration

2013 2012

£ £

Salaries & Wages (gross) 1,569,315 1,239,903 National Insurance contributions (employer's only) 156,689 125,023 Other Pension Costs 82,397 66,310

1,808,401 1,431,236

Salaries and wages are shown gross and national insurance contributions are employer only. One employee received emoluments in the band £60,000 to £70,000 (2012 – One). This employee had benefits accruing under a money purchase scheme and contributions paid during the year totalled £3,934. (2012 - £3,780) 7 Trustees claimed expenses during the year for travel and subsistence, amounting to £1,604 (2012 - £744, 5 Trustees)

No Trustee received remuneration during the year (2012 - £1,437)

7. Pension costs

The charity operates a defined contribution scheme for members of staff. The assets of the scheme are held separately from those of the charity, being invested with insurance companies. Pension costs charged in the Statement of Financial Activities represent the contributions payable by the charity in the year. There was no accrual (2012 - £nil) at the year-end representing pension costs payable.

8. Taxation

The company is a registered charity and no provision is considered necessary for taxation.



30

9. Staff numbers

The average number of employees during the year was:

2013 2012

Number Number

Project staff 48 38 Administration and support 10 9

58 47

Project staff is made up of the following full time equivalent apportionment: fundraising (7), generating and servicing subscriptions (4) education and promotional (8), operational (28), governance (1)

10. Tangible Fixed Assets Fixtures, Fittings &

Computer Equipment

£

Cost At 1 April 2012 68,594

Additions at cost 5,922 Disposals - At 31 March 2013 74,516

Depreciation

At 1 April 2012 61,758 Charge for the year 5,916 Disposals - At 31 March 2013 67,674

Net Book Value

At 31 March 2013 6,842 At 31 March 2012 6,836

MCS retains ownership of one motor vehicle which cost £9500 but which has nil net book value (2012 - Nil). The assets remaining are used for charitable activities, fundraising, membership servicing or governance.

11. Investments

11a. Investments in subsidiaries

Investments held by the charity represents the whole of the issued share capital of each of the following companies:

2013 2012

£ £

Marine Biological Consultants Limited 100 100

MCS Sales Limited 100 100

200 200

Both Companies are registed in England and Wales and are dormant companies.



31

11b. Listed investments 2013 2012

£ £

Balance Brought Forward 1/4/12 497,679 - Additions at cost 208,058 527,081 Disposals at Market Value (199,053) (43,750) Realised Gains 4,565 162 Unrealised Gains 56,314 14,186

Market Value as at 31/03/2013 567,563 497,679

The historical cost of investments held at 31st March 2013 was £498,956 (2012 - £483,492). None of the investments relate to restricted funds and all are managed by HSBC. The valuation of the investments, at market value, was performed by HSBC. The investments are held to provide an investment return to the charity. As at 31 March 2013, the market value of investments listed in the UK amounted to £387,772 (2012 - £342,743). The remainder of £179,791 (2012 - £154,936) represented investments listed overseas. No individual investment comprised more than 5% of the total investments in either year.

12. Debtors

2013 2012

£ £

Trade debtors 17,426 5,474 Prepayments and accrued Income 273,762 273,774 Amount due from subsidiary undertaking 1,000 1,000 Other debtors 32,674 98,115

324,862 378,363 Other debtors include known income due through contractual agreements with corporate sponsors.

13. Creditors: Amounts falling due within one y ear

2013 2012

£ £

Trade creditors 57,003 53,677 Other taxes and social security - - Other creditors and accruals 28,398 81,579 VAT liability 81,680 37,085 Subscriptions in advance 85,509 72,676 Grants received in advance - -

252,590 245,017 All subscriptions in advance and grants received in advance at 31 March 2012 were released to income during the year. 14. Limited liability of guarantors The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £1. The number of members at 31 March 2013 was 5,022 (2012 – 4,900). Membership is expressed as defined by the Board of Trustees following adoption of the updated Articles of Association in April 2010.



32

15. Statement of funds

At 1 April 2012 Income Expenditure Transfers

Gains and

Losses

At 31 March

2013

£ £ £ £ £ £

General Reserves: 1,146,869 1,304,801 (584,612) (739,525) 67,150 1,193,683

Total Unrestricted Funds 1,146,869 1,304,801 (584,612) (739,525) 67,150 1,193,683

Restricted Funds: Beachwatch/Adopt-a-Beach 10,000 7,032 (154,017) 136,985 - -

Darwin Maldives - 45,000 (45,000) - - -

Darwin Initiatives - 23,070 (23,070) - - -

Fisheries 3,334 7,843 (185,776) 177,933 - 3,334

Coastal Pollution 18,750 15,060 (62,128) 28,318 - -

Scottish Campaign 2,480 25,626 (113,518) 85,412 - -

Coral - General - - - - - -

Turtle Programme - 43 (3,262) 3,219 - - Turtle Conservation Fund - - - - - - Adopt-a-Turtle Programme - 35,224 (37,109) 1,885 - -

Marine Planning - - (90,273) 90,273 - -

Biodiversity 17,400 37,225 (195,019) 143,562 - 3,168

National Seasearch 74,838 80,455 (108,806) - - 46,487

Biodiversity Roadshow 34,044 9,999 (22,504) - - 21,539

Welsh Campaign 3,016 23,871 (99,852) 72,965 - -

Welsh Fish Guide 1,113 - - - - 1,113

TCI Turtle Project 5,639 57,711 (52,839) - - 10,511

Sea Champions Project 249,999 140,985 (389,957) (1,027) - -

Restricted Donations 2,118,600 2,750 (487,750) - - 1,633,600

The Wakefield Fund 3,150 - - - - 3,150

The MCS Trust Fund 1,000 - - - - 1,000

Total Restricted Funds 2,543,363 511,894 (2,070,879) 739,525 1,723,903

Total Funds 3,690,232 1,815,695 (2,655,491) - 67,150 2,917,586



33

General Reserves The general reserve represents the free funds of the charity which are not designated for particular purposes. Restricted Funds All restricted funds are for specific conservation or educational projects in the UK and overseas, and are briefly described below with further details on recent activity described in the Trustees' Report. The transfers from the general reserve and designated funds relate to the costs of the programmes not covered by grant income. Beachwatch/Adopt-a-Beach: MCS project launched in 1998 involving volunteers in regular surveys and clean up of litter on beaches. Data collected is used by MCS to identify the key sources of litter and develop initiatives to reduce litter at source. Adopt-a-Beach includes the Beachwatch Big Weekend event which takes place over one weekend every September and provides a UK-wide snapshot of the quantities and sources of beach litter. Use of the name Adopt-a-Beach ended in 2011 with Beachwatch representing both the annual and seasonal surveys. Darwin Maldives: Funding from the Darwin Initiative (Defra UK) is supporting a 4 year programme of work in the Maldives which began in April 2009. MCS manages the project, working with the Marine Research Centre in the Maldives to collect vital data on the fisheries for food fish and the aquarium trade. Darwin Initiative: MCS received funding from the BBC Wildlife Fund and the Lighthouse Foundation to continue its programme of work to establish a marine protected area in Semporna, Sabah, Borneo. Fisheries: MCS works to promote the development of sustainable wild-capture and farmed seafood production, through influencing policy measures, promoting sustainable fishing and fish-farming practices and sustainable seafood consumption through the Pocket Good Fish Guide and Fishonline. Coastal Pollution: MCS works to reduce pollution from sewage, nutrients and toxic substances. The Good Beach Guide is produced annually to inform the public of the bathing water quality standards at UK beaches and promote improvements to coastal sewage treatment. Scottish Campaign: MCS established an office in Scotland in 2000, to promote and support MCS projects. The campaign raises awareness through outreach activities, encourages participation in practical marine conservation projects such as Beachwatch and marine life surveys and provides input on national marine policy developments in Scotland. Turtle Programme: The MCS Marine Turtle Conservation Programme was established in 2001 to promote the protection of marine turtles in the UK and abroad through research, conservation measures and education. Turtle Conservation Fund: Funds raised through the Adopt-a-Turtle scheme have generated the Turtle Conservation Fund to which organisations from around the world can apply for grants to support turtle conservation projects. Marine Planning: This programme covers work to promote and influence the sustainable and sensitive use of marine resources including the sensitive and strategic planning and operation of activities such as aggregate dredging, oil and gas development, marine renewables and coastal development. With the Marine Acts in place, focus is now on ensuring that the key laws and policies designed to protect our seas & ensure maritime industries do not adversely impact the marine environment are effectively implemented. Biodiversity: This programme includes work on identifying and studying important or rare marine species (e.g. basking shark, pink sea fan and fan shell) and habitats and promoting the protection of these and broader communities through species conservation measures and marine protected areas, as well as work to reduce threats to biodiversity such as alien species introductions. National Seasearch: This is a partnership programme with a number of agencies and organisations to involve volunteer recreational divers in the survey of UK marine species and habitats through training and organisation of survey dives. Data collected contributes to the national database of species and habitats.



34

Biodiversity Roadshow: This educational programme combines a highly visual Cool Seas Roadshow to highlight the diversity of UK marine life to children in schools and public events, production of educational materials and provision of advice to the public on how they can support protection of marine biodiversity. Welsh Campaign: MCS established a dedicated Welsh Officer staff position and programme in 2006. The campaign raises awareness through outreach activities, encourages participation in practical marine conservation projects such as Beachwatch and marine life surveys and provides input on national marine policy developments in Wales. Welsh Fish Guide: MCS received a grant from the Countryside Council for Wales in 2007 to produce, in partnership with other grantees, an identification guide to marine fish in Wales for use by the public and sea users. TCI Turtle Project: MCS received a grant from benefactors Simon and Anne Notley in 2008 to set up a project in the Caribbean Turks and Caicos Islands to research and propose a fisheries management plan for the legal turtle harvest which takes place on the islands. Sea Champions: MCS was awarded a 3 year contract for funding in 2011 from Marks & Spencer through the Forever Fish partnership, to expand its Sea Champions volunteer programme nationally. Restricted Donations: MCS received a grant in July 2011 from the Tubney Charitable Trust to support MCS capacity and resources to: develop free income generation streams including marketing and fundraising activities, increase MCS influence on stakeholders at the UK, national and local level in support of marine conservation objectives; and increase financial and administrative capacity to support the charity through a period of growth. The Wakefield Memorial Fund was set up to make awards to deserving students studying the impacts or solutions to coastal pollution. No awards were made in 2013. (2012 – £1,000l). The MCS Trust Fund was established to hold funds specifically donated to provide financial assistance to community-based organisations with marine environmental issues, subject to such financial assistance being limited to charitable purposes or purposes ancillary to charitable purposes



35

16. Analysis of net assets between funds

Restricted General

Funds Funds Total

£ £ £

Fund balances at 31 March 2013 are represented by:

Fixed assets - 574,605 574,605 Current assets 1,723,903 871,668 2,595,571 Current liabilities - (252,590) (252,590) ________ ________ ________

Total net assets 1,723,903 1,193,683 2,917,586 ________ ________ ________

17. Operating lease commitments As at 31 March 2013 the charity had annual commitments under non-cancellable operating leases as follows: 2013 2012 £ £ Land and Buildings Leases expiring: Between two and five years 63,050 63,050 ----------- ----------- Other operating leases Leases expiring: Between two and five years 3,772 4,881 ----------- -----------

18. Material Legacies Legacy income is only included in incoming resources where the legacy has been received or both the receipt and the amount are known with sufficient certainty. As at 31 March 2013 the charity has been notified of no such legacies.


36

Acknowledgement of financial and other support The Marine Conservation Society would like to thank all the individuals and organisations that have supported the Society’s work in the period to 31st March 2013. Organisations, Companies, Charitable Trusts and Fou ndations giving grants of £1,000 or more towards specific conservation projects: Big Blue Limited British Plastics Federation Bernard Sunley Foundation Calouste Gulbenkian Foundation Countryside Council for Wales Darwin Challenge Fund Defra D’Oyly Carte Charitable Trust Ernest Cook Trust Environment Wales IFFO J & JR Wilson Trust John Ellerman Foundation

Marks & Spencer Plc Natural England Northern Ireland Environment Agency Peoples Trust for Endangered Species Phoenix Charitable Trust Royal National Lifeboat Institution Royal Society of Wildlife Trusts Scottish Environment Link Scottish Midland Co-operative Scottish Natural Heritage The Craignish Trust Wales Council for Voluntary Action

Organisations and companies supporting MCS with con tributions of £1,000 or more in unrestricted funds: Debenhams EDF Energy EWOS Ltd Fat Face Foundation Green Insurance Company Harbour Lights Fish & Chips Harbour & Jones Loch Duart Ltd Loch Fyne Oysters Marks & Spencer Plc

Mischief Slide Promotions Parkdean Holiday Parks Ltd Prospects4Employment Rudding Gates Slice Promotions Toyota Turtle Mat Company Wandle Scuba Diving Club Waitrose

Charitable and Company Trusts giving a donation of £500 or more: Anson Charitable Trust Barker Charitable Trust Ltd Benham Charitable Settlement Chapman Charitable Trust Diana Edgson Wright Charitable Trust Dischma Charity Trust Donald Forrester Trust Dr L H A Pilkington Charitable Trust Gilbert & Eileen Edgar Foundation Golden Bottle Trust Hugh Fraser Foundation John Cowan Foundation Lady Hind Trust Langdale Trust Lady Eileen Joseph Foundation Marsh Christian Trust Martin Connell Charitable Trust Mary Heap Charitable Trust Millichope Foundation Montague Paton Trust N Smith Charitable Settlement

Peacock Charitable Trust Percy Hedley Charitable Trust Pilkington Charity Fund Portrack Charity Trust Saints & Sinners Trust Sir John Fisher Foundation The Annandale Charitable Trust The Arnold Burton 1998 Charitable Trust The Blair Foundation The Joseph Strong Frazer Trust The Misses Barrie Charitable Trust The Mitchell Trust The PP Mackintosh Foundation The Seven Pillars of Wisdom Trust The Spears Charitable Trust The St Mary's Charity The White Blossom Trust Thomas Lilley Memorial Trust Waynflete Charitable Trust William Dean Trust Woodpecker Trust


37

MCS expresses its gratitude to the many Trusts who granted other donations or wish to remain anonymous. Legacies Donations were gratefully received in memory of Mr J Aird, Dr J B Allan, Ms V A Buckle, Miss V G Cumming, Ms E Dodwell, Mr B Eaton, Ms O Fidler, Mr R G Hackers, Ms D Hillyer, Mr M Hoskin, Ms Lidyard, Mr D de Lancey, Ms L Poolwell, Ms M Stoddart, Mr Wilson, Patrons, Supporters, Members and Groups MCS would like to thank its members and Local Groups for their support and fundraising effort over the year. Thanks also to all the volunteers who supported MCS projects and/or gathered vital information through Beachwatch, Seasearch, Jellyfish, Basking Shark and Turtle Watch. Also to the many individual and community participants, dive clubs, sports clubs, youth and member organisations and school and college students who raised money to support the work of the Marine Conservation Society.

Bernard Eaton, MCS Founder and Vice-President 1926- 2012 MCS paid tribute to founder and Vice-President, Bernard Eaton who sadly died at the age of 86 in October 2012. Bernard set up DIVER, the magazine for British Sub Aqua Club members in the 1960s, and remained at the heart of that publication throughout his life. In the 1970s, driven by his passion for the underwater world and concern about the state of Britain’s seas, Bernard was inspired to organise an “Underwater Conservation Year – to promote the study and protection of natural and historical features of the underwater environment of value and interest to mankind”. Together with his good friend, Professor David Bellamy, with whom he had collaborated on some pollution projects, they brought together marine biologists and professionals from the diving, research and government bodies to form a working party. It rapidly became clear that no one really knew that the marine environment was changing for the worse and Underwater Conservation Year was launched in 1977 to highlight the issues and establish the first UK baseline study of marine habitats and species such as sea urchins, sea slugs and sea fans. Bernard had the foresight and drive to contact His Royal Highness The Prince of Wales to become President of the Underwater Conservation Year and, the following year the Underwater Conservation Society set up to take forward the vital projects launched in 1977. It was Bernard’s determination and vision that kept the Underwater Conservation Society going, secured funds and ultimately established the Marine Conservation Society charity in 1983. Bernard was Chairman of the Marine Conservation Society for the charity’s first seven years and later Vice President. He was actively involved in the Society’s work throughout his lifetime, attending conferences, promoting MCS work and projects through DIVER magazine and the Dive Shows. Bernard was a pioneer in marine conservation, his passion for Britain’s sea life and vision for the study of marine habitats and species in order to protect them for future generations created the foundations of the Marine Conservation Society. Bernard leaves an inspirational legacy for all divers and marine naturalists and is remembered with great fondness and sincere appreciation for his significant contribution to marine conservation.

38

www.mcsuk.org

Registered office Unit 3, Wolf Business Park, Alton Road Ross-on-Wye, Herefordshire, HR9 5NB

Telephone: 01989 566017 E-mail: [email protected]

Registered Charity No (England and Wales): 1004005

Registered Charity No (Scotland): SC037480

MCS - Protecting our seas, shores and wildlife

© Marine Conservation Society September 2013

Date post:	28-May-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

AMENDING REPORT FINANCIAL STATEMENTS · The Marine Conservation Society (MCS) vision is of seas fit...

Documents