We are the RNLI: RNLI Annual Report The charity that and Accounts 2017 saves lives at sea Every day of every year, One Courageous Community people of all backgrounds get into danger in the water. It’s a problem we’re here to tackle. We’re here to explain the risks, share safety knowledge, and rescue people whose lives are in danger. We’re here to work with others to make the water a safer place for everyone. We’re here to prevent tragedies inshore and offshore. And with your support we always will be. Contents Welcome 32,116 people rescued Annual Report Welcome from the Chairman and Chief Executive

or assisted of the Trustees of The RNLI had a successful 2017, however After a lot of turbulence and change, you measure it. We’ve achieved remarkable we can see the light at the end of the tunnel. the Royal National things together, and that work has saved We’ve mapped a courageous new way ahead hundreds of lives. and must continue shaping our organisation Lifeboat Institution All RNLI people are lifesavers – whether together to halve domestic drowning and make they’re rescuing others at sea, supervising a significant impact on international drowning. beaches, educating or influencing, fundraising, We will do all of this as well as operating, 3.32M or behind the scenes getting Saving Lives at Sea supporting and developing the best maritime preventative onto our TVs. lifesaving service in the world. That is what we actions carried As you’ll see in the following pages, we are here to do and, so long as people remain enhanced our fleet, rolled out lifeguards to at risk, we will keep doing it. out by lifeguards more beaches, and saw real-life examples of We must also keep in tune with our Our purpose, our impact 3 how Respect the Water is preventing drowning. volunteers and supporters. I see the RNLI as We reached young people in new and inventive wholly owned by the public and we will never Breaking the drowning chain 9 ways and we made strides internationally too. lose that connection. We’re listening carefully I spoke at a Global Drowning Prevention Forum, to the public mood and adapting. that we organised with the World Health Everyone who contributes to our work, Lifesaving 15 Stuart Popham and Paul Boissier Organization and Bloomberg Philanthropies, at the RNLI’s All-weather Lifeboat whether crew or shore-based, a volunteer, 207,839 Building for the future 19 which inspired vital commitments from UN Centre in Poole a supporter or a member of staff – is the hours at sea ambassadors, NGOs and UN agencies. embodiment of the RNLI. People and fundraising 23 given to rescues ‘The more we strive to improve any other organisation. Change is rarely easy I am so proud to be associated with this ‘We’ve mapped a courageous and exercises Financial review 27 ... the greater chance we have and I’m grateful to our volunteers and staff great organisation. Wherever I go, people new way ahead and by crew members for recognising that. They did all they could talk about the RNLI with such admiration Governance 33 of halving drowning’ to achieve success and highlighted the areas and appreciation. And that doesn’t happen must continue shaping where we can do things better. by accident – it happens when thousands our organisation’ Independent auditor’s report 43 Our national fundraising campaigns, like The more we strive to improve the way we of individuals care deeply and give vast Mayday and Fish Supper, were a triumph – and work together, and the way our organisation amounts of time and energy. These wonderful people have such passion Financial statements 45 we had a record trading year. I’ve met so many operates, the greater chance we have of halving I want to say thank you to everyone and belief in our cause and it’s our duty to of the people who make that all happen and it’s drowning by 2024. It’s a challenging road but who has put so much into delivering our ensure that their time and money is put Notes to the accounts 51 clear that they help in so many different ways. the outcome will be worth it. lifesaving service and raising funds. There are to best use. Last year wasn’t all plain sailing. To reach You make all this possible, so thank you so many things to celebrate about 2017: Our lifesaving mission is vital and it’s only 95% RNLI officers and contacts 71 bold targets we had to make bold changes for everything you do. the rescues, the extraordinary success of possible with the support of people like you. of our people to the way we think and do things. That was our prevention work and the delivery of six are volunteers Awards 76 a huge challenge for many – particularly new Shannon class lifeboats to name a few. when things didn’t go strictly to plan. There’s We also completed some really progressive Thank you 77 always pressure to improve and be compliant Stuart Popham work necessary to deliver against our Paul Boissier and, in that respect, we’re no different from RNLI Chairman strategic targets. RNLI Chief Executive 11 2 Our purpose

WHAT WE DO

Our purpose, RNLI volunteer lifeboat crews provide a 24-hour rescue service in the UK and Ireland, and our seasonal lifeguards look after people on busy beaches. Our Flood Rescue Team helps those affected by flooding. This forms our concept of operations in the UK and Ireland, which works our impact to measurable performance standards. WE’RE MORE THAN A RESCUE SERVICE Our aim is to defeat drowning by Wherever drowning occurs, we aim to defeat it. With your support the RNLI can break the drowning chain and make empowering communities and saving LIFEBOATS FLOOD RESCUE PARTNERSHIP AND ADVOCACY early interventions by influencing, supervising and educating people. We work with partners to understand the risks and lives through these principal activities: Our crews aim to launch their lifeboats within 10 minutes of Our flood rescue teams can reach nearly any flood We are working to get the global drowning problem onto offer innovative solutions – and our Community Safety being notified, and can operate up to 100 nautical miles out to sea. rendezvous point in the UK and Ireland within 6 hours of the agenda of policy makers. We collaborate with other teams share that knowledge with anyone using the water. We aim to reach at least 90% of all casualties within 10 nautical request. These specially trained volunteers can also deploy organisations to understand the causes of drowning, We share that expertise internationally too. We give support miles of the coast within 30 minutes of launching in any weather. internationally within 24 hours of being notified. undertake research, model the risks and offer solutions. to countries where drowning rates are significant, and work The vast majority of our crew members are volunteers. with like-minded organisations to raise awareness of the problem and how we can address it together. All of these lifesaving activities are underpinned by people and initiatives that generate income and ensure that we are well governed.

OUR VOLUNTEERS Volunteers remain at the heart of our charity, supported by expert staff working in partnership to enable communities to save lives. Around 95% of RNLI people are volunteers, including more than 4,950 crew members and 23,000 community fundraisers. Thousands more dedicated volunteers raise awareness, give safety advice and help in our museums, shops and offices. Find out more about our people on page 23. LIFEGUARDS COMMUNITY SAFETY FUNDING

Lifeguards aim to reach any person up to 300m from shore, Community safety is core to the RNLI’s operations and underpins As a charity independent of government, we rely on the within the red and yellow flags on RNLI-patrolled beaches, our aim to halve accidental coastal fatalities and significantly generous support of donors to meet the cost of our lifesaving in 3½ minutes. reduce serious incidents in the UK and Ireland by 2024. We use activities. We set exacting standards in our fundraising to research, targeted campaigns and lifesaving plans to encourage protect and maintain good relationships with our supporters changes in people’s behaviour, in and around the water. and ensure financial stability. 3 4 Our purpose Our purpose

OUR IMPACT IN 2017 OUR STRATEGY TO REACH THESE GOALS SAVING LIVES • RNLI lifeboat crews rescued or assisted 8,072 people In 2017 we brought together thinking from across the entire ‘The Float to Lerwick lifeboat crew pulled on and our lifeguards assisted 24,044 people. organisation to write our new lifesaving strategy. It’s an Live advert all their experience and insider • Our Respect the Water campaign was the biggest yet. evidence-based approach, with objectives rooted in years of 99,411 knowledge when five fishermen The campaign helped to prevent several deaths and insight about who is drowning and why. The circumstances in was the Children taught water jumped for their lives in March. 73% of the UK population now think about safety which people drown vary by location and type of activity but The trawler Ocean Way was safety messages as a direct around the water, compared to 71% in 2016. the risk of drowning follows a common chain of events: the reason I rapidly taking on water off a remote • There’s a growing awareness and acceptance among drowning chain. result of our work with archipelago in Shetland and attempts the international community that drowning is an Our strategy is to work back up the drowning chain to knew how international partners to pump her out had failed. Coxswain avoidable epidemic. understand the causes of drowning, identify the appropriate Alan Tarby says: ‘One of our crew • Around 1.5M people saw each of the 12 episodes way to reduce the risk of drowning and to deploy the to stay alive’ members, Darren, knew the trawler of BBC Two’s Saving Lives at Sea. right activities to mitigate that risk. We will deliver these and her crew well. We transferred • We worked with partners including the Gaelic Athletic activities through a combination of channels. Of course, our him and our mechanic John with Association (GAA), Royal Yachting Association (RYA), communities and volunteers continue to play a vital part in another pump.’ As Alan made Royal Life Saving Society UK (RLSS UK) and Swim England that delivery – and increasingly in developing community 32,116 plans to fetch a third from a nearby to educate people on water safety. lifesaving strategies with partnership organisations like the People rescued or assisted helicopter, the trawler suddenly GAA and directly with those at risk using targeted campaigns by RNLI crews and lifeguards started going down and her crew like Respect the Water. (29,181 in 2016) were forced to abandon ship. OUR FUTURE DIRECTION Find out more about breaking the drowning ‘I’ve never seen a boat sink that Our lifeboat crews and lifeguards rescued or assisted 32,116 chain on page 9. quickly,’ says Alan. ‘It went from people in 2017 but around 190 people still die in coastal Lifeboat lives saved a manageable situation to a disaster accidents around the UK and Ireland every year. We believe In 2017 we introduced a more detailed casualty reporting system in seconds.’ Alan pulled the lifeboat that empowering communities, helping to make places safer away to give everyone room to PREVENTING DROWNING that allows us to collect more information about the people we and ensuring people behave safely are critical to saving those are rescuing and why they get into difficulties. The aim is to help us jump into the water. The RNLI crew Our growing prevention work won’t have escaped many that ‘slip through the net’. We also believe it’s our duty to use reduce the number of people who get into trouble on the water. then made fast work of hauling the people’s attention. We set ourselves an ambitious target our 194 years of knowledge and experience to raise the issue of Our provisional figure for lives saved in 2017 is significantly fishermen onboard the lifeboat. for Respect the Water in 2017: the campaign should help global drowning and work with international partners to tackle different from recent years, to some extent because we are Find out how we helped to keep to save a life. it. Therefore, we are committed to these long-term targets and recording information in a different way, but also because the more fishermen safe on page 13. It was a massive success, thanks to partnerships with measuring the impact of our activities against them: new system is still under development. We are working with organisations like the GAA and Nicholson’s pubs, which our volunteers and frontline lifesaving teams to ensure that we helped to spread the word (see pages 11–12). Our Float have captured and recorded the rescue information as accurately 6 message has already saved six lives, including that of as possible, but it is unlikely that our lives saved figures will be 2024 17-year-old Evan Chrisp who was pulled out to sea by drownings prevented fully accurate before 2019. As a result, we have not included a rip current. our provisional figures for lives saved in this report. We have Make a 50% reduction in coastal fatalities as a result of Respect ‘I was panicking and getting really anxious and scared,’ ‘I’ve never seen instead used three statistics to indicate the volume of our across the UK and Ireland he says. ‘I was trying to swim and fight the water but the Water lifesaving activity: people assisted, lifeboat launches and lifeguard realised it wasn’t working.’ Then Evan remembered the a boat sink that (none reported in 2016) interventions. We have included equivalent data from previous RNLI’s advice. He stopped kicking, put his head back and years to allow a comparison to be made. Clear national commitments to take action on drowning in floated. ‘Ultimately, that’s what saved my life,’ he says. quickly’ Later this year, we will report the number of lives saved countries that account for 25% of the global burden ‘Seeing the RNLI’s Float to Live advert was the reason in 2017 that we have been able to confirm, recognising that I knew what to do and how to stay alive.’ this number may be incomplete.

5 6 Our purpose Our purpose

OUR FOCUS FOR 2018 Achieving the strategy has proved challenging so far and so we have broken it down into two key areas of focus, with targets for each area, that will help us in the short term.

These are:

MAINTAINING A WORLD-CLASS 4,950+ volunteer lifeboat RESCUE SERVICE crew members

Making improvements to our rescue service ‘Children are drowning because they – including asset maintenance, fixing issues have no basic survival training’ for our coastal teams and ensuring we maintain a world-class rescue service DEVELOPING LEADERS In September 2017, lifesavers from all over the world attended the Future Leaders programme at RNLI College in Poole, Dorset, where they shared knowledge and developed skills in operating and leading a lifesaving organisation. For the first time ever, all the candidates represented our partner organisations. Salwa Saïd, a volunteer with The Panje Project in Zanzibar, says: ‘I loved the course. We’re a small organisation and are learning how to expand and make it IMPROVING OPERATIONAL SAFETY sustainable. We need to be able to stand on our own two feet. In Zanzibar, we’re surrounded by water so aquatic A programme of work to reduce risk for our people survival is really important. Children are drowning because they have no basic survival training. – keeping them safe and improving the way we do things ‘I’m glad to work with Panje because it’s solving a problem long-term, teaching kids who can grow up and teach their kids. As a woman, it was hard doing this job in the beginning because of the culture in Zanzibar. But we’re getting through. We have women who can do anything, so we need to empower them.’ Portsmouth volunteers take a well-deserved rest after a long day of safety patrols at an Amercia’s Cup event. Find out more about our brave lifesavers on page 15

7 8 Breaking the drowning chain

Our volunteers have been saving lives for nearly 195 years. There will always be Breaking the a need for rescue but we have changed the way we look at drowning prevention. In 2017, we began doing things differently at a strategic level – and on the drowning chain frontline – to save lives in a more effective and sustainable way

WHY WE NEED TO EVOLVE THE DROWNING CHAIN Drowning is a threat that must be defeated. In the UK and Ireland, around 190 people still die in coastal accidents every year and many more find themselves in mortal danger. Globally, more than 350,000 die needlessly every year – and most of them are children. The RNLI believes this is an avoidable epidemic and we have set ourselves courageous 1 1 targets to confront it. By our 200th birthday in 2024 2 2 we aim to: 3 • make a 50% reduction in coastal fatalities across 3 4 4 5 the UK and Ireland 6 Drowning • understand how we can help prevent inland drowning 5 and suicides in water 6 Drowning Lives are preventing people cannot RISK • have effective drowning prevention strategies in place places are not safe/ people cannot – or do drowning is look after – or locally, nationally and internationally. at risk people are isolated not – behave safely because ... not a priority save – themselves To do this we need to work with others directly and through partners and communities to break the drowning chain.

We will do this as well as – not instead of – rescue. so, if we ACTIVITY work supervise highlight the reduce dangers raise wareness WHAT IS THE DROWNING CHAIN? together problem and save The risk of drowning follows a common chain of events that to ... we call the drowning chain. We need to work back up that chain to influence people in the years before an accident rather than

in the minutes afterwards. OUTCOME drowning measures are people want to fewer incidents that prevention in place to manage risks and – and people are means ... policies are mitigate hazards behave more safely saved if they introduced do happen

9 10 Breaking the drowning chain Breaking the drowning chain

BREAKING THE CHAIN: BACKBONE OF THE SERVICE BREAKING THE CHAIN IN 2017 BREAKING THE CHAIN: want to get any messages across in Ireland, INNOVATIVE PROGRAMMES We will always need to supervise and rescue people at the end of Making interventions further up the drowning chain requires NATIONAL CAMPAIGNING the GAA is a great place to start.’ As part of our partnership with Nicholson’s pubs, we rolled the drowning chain. Last year, our volunteer crews and lifeguards a greater focus on educating and influencing others. So in In 2017 the RNLI teamed up with the Gaelic Athletic Angela Veldman, Courtmacsherry Harbour out a pilot programme at some of their busy waterside continued to provide the backbone of our service – patrolling 2017 we continued to ramp up our work with communities, Association (GAA), Ireland’s biggest sporting RNLI’s education presenter, is excited about venues in London and Kent to train staff on how to use throw beaches, aiding people in trouble and saving lives. You can read organisations and countries to highlight the problem and 1,438 body. Both organisations rely on the commitment reaching more young people through the GAA: bags and save people that get into trouble in the water. more about their work at the sharp end on page 15. explain the risks. divers tested in our and dedication of community volunteers, and ‘We’ll be getting to older children, and we’ll be RNLI Safety Product Manager Bridie Appleby-Gunnill Our collaboration with partners, both domestically and there are plenty of local links – ideal for creating going inland as well, which is brilliant,’ she says. internationally, increased in 2017. One example of this is when Wellpoint Health Kiosks conversations about the importance of floating. Crew Member Evin O’Sullivan, also a GAA club says: ‘The staff know that the first and best thing they LIFEBOAT LAUNCHES can do is educate the public about risks around the water. we teamed up with the Royal Life Saving Society UK to identify ‘It’s a brilliant idea,’ says Billy O’Donovan, player, agrees: ‘Every kid here grows up hearing the What’s so exciting about this intervention is that they’re 8,900 ways of saving more lives together. Both organisations have Barryroe goalkeeper and former RNLI crew warnings, but some inland don’t. The GAA is successful education and drowning prevention programmes, member. ‘There’s such a connection. And if you in every nook and cranny.’ receiving training, community talks and resources – it’s the 8,800 and together we can align messaging, eliminate duplication whole package, not just one intervention.’ 8,700 Steve Nevill, Door Supervisor of The Horniman at Hays of effort and pool resources to create a unified approach. 8,600 on the River Thames, says: ‘I regularly see people leaving We’ve also been working to ensure that, for the first time, the pub after a few drinks, then sitting on the railings by 8,500 drowning prevention is recognised and resourced as a global ‘To get messages across the river or stumbling along the path. I now feel more 8,400 development priority. In 2017, we focused on generating new confident in being able to protect our guests. I appreciate 8,300 levels of awareness, and commitment to action, from countries 10M+ in Ireland, the GAA is the additional layer of safety that the RNLI is encouraging 8,200 across the world. Most encouragingly, we secured support from views of our Float to Live 101 governments for a first-ever UN resolution on drowning us to put in place, and the training was exceptional.’ 8,100 film on Facebook a great place to start’ prevention, and are working hard to translate that support into 8,000 political change. ‘It’s the whole package, 7,900 Volunteers and staff continued to develop community 0 lifesaving plans. These plans – created by those who not just one intervention’ 2012 2013 2014 2015 2016 2017 understand the local hazards and what must be done to mitigate them – were further shaped by risk assessments we carried out in partnership with the National Water Safety LIFEGUARD INCIDENTS Forum. We’re also applying learnings from Project Bhasa, our 101 drowning prevention work in the Barisal Division of Bangladesh. 25,000 governments show support We now have a complete range of lifesaving training that the RNLI and others can deliver internationally – including for action to tackle global 20,000 search and rescue, flood rescue and lifeguarding. And we’ve been drowning epidemic working with partners in Tanzania, Bangladesh and Ghana to 15,000 develop sustainable drowning prevention plans that will allow their lifesaving to continue when the RNLI is no longer directly involved. Conor Tyndall (right), 10,000 Our domestic data shows that 73% of people consider Making interventions further Courtmacsherry safety important when in and around the water, compared with up the drowning chain requires Harbour’s youngest 5,000 71% in 2016. Meanwhile our continued supervision and rescue RNLI crew member, work will inform future prevention plans. In 2017 we rescued or a greater focus on educating with fellow Crew Member 0 assisted over 32,400 people in the UK and Ireland and analysis and Barryroe GAA Club 2012 2013 2014 2015 2016 2017 of that data will help to better identify risk groups in the future. and influencing others player Ciarán Hurley

11 12 Breaking the drowning chain Breaking the drowning chain

EARLY INTERVENTION ‘Without a lifejacket, Looking to 2018 and beyond, we have to deliver I’d have only had 15 against these key lifesaving objectives: a couple of minutes’ BE SAFE future leaders in lifesaving trained at RNLI College GETTING TARGETED INTERVENTIONS IN PLACE TO HELP THOSE MOST AT RISK HAVE FUN! We need to change behaviour among high-risk groups, work with governments and authorities so they take If you are in and around the water responsibility for community safety, and work in ALWAYS REMEMBER TO: partnerships to reduce the risk of suicide and self-harm. One 2017 example of this was the opening of our new STOP AND THINK 753,013 visitor centre at Barry Island that focuses on safety and 1 young people received drowning prevention with a range of interactive displays. safety advice and STAY TOGETHER information in the 2 IDENTIFYING AND MITIGATING RISK LOCALLY, BREAKING THE CHAIN: UK and Ireland TARGETED CAMPAIGNS NATIONALLY AND INTERNATIONALLY ‘I felt much more relaxed with the lifejacket on, knowing it FLOAT We must ensure that high-risk communities have drowning would keep me afloat,’ says Fisherman Stuart Caley. ‘I also 3 reduction plans, that effective national strategies are felt warmer once I’d relaxed a bit – not so tense and shivery.’ in place and supported, and that people in high-risk Fortunately, this wasn’t real-life – but it was near enough. countries have access to the tools and support they need Stuart was one of a group of fishermen that got a taste of the CALL 999 to implement drowning reduction strategies. For instance, 4 in 2017 we identified and researched projects in Bangladesh debilitating effects of cold water when he took part in Children learn water safety skills inland at a a series of exercises in the sea survival pool at RNLI College. Swim Safe session in Stoke Newington, London. and Tanzania where we can make a range of interventions Commercial fishing is one of the most dangerous and hopefully reduce drowning rates. We must do more occupations, and this is one example of the RNLI’s work in of this at home and internationally. 2017 to help fishermen improve their chances of survival PROTECTING THE YOUNG before help arrives. Educating children about water safety is fundamental to breaking to visit schools and youth groups; our Young Adults programme, that The RNLI’s Fishing Safety Team put the fishermen the drowning chain and we need to give them the right knowledge targets 16–18 year-olds, continued to grow; and evolving partnerships DROWNING IS RECOGNISED AS A GLOBAL through a range of scenarios, helping them improve their 13,158 AND LOCAL PROBLEM THAT CAN AND SHOULD and skills. with Peter Jones Academy and Birmingham City Council allowed survival and recovery techniques in a safe and controlled In partnership with Swim England we hosted Swim Safe us to widen our reach to schools in city centres. In total the team FIND MORE FUN children completed BE PREVENTED environment. The pool – used to train lifeboat crew – AND SAFETY TIPS AT We must establish drowning as a recognised cause of sessions at 22 locations across the UK in 2017. Some took place delivered over 520,000 messages to young people, another increase RNLI.org Swim Safe lessons features realistic sea temperatures and can create at inland locations for the first time, allowing us to reach children on 2016. death, build awareness of water-related risks, and drive artificial waves, wind and rain. from non-coastal locations. Around 17,000 Swim Safe packs were Research found that some of our youth safety messages were not (7,059 in 2016) a shift in attitude towards water safety. Our efforts Frankie Horne, RNLI Fishing Safety Manager, says: delivered to schools and almost twice the number of children took connecting with children as well as we’d like. So in 2017 we worked to build strategic relationships with governments ‘They all left having done something positive. For some it part compared with 2016. with specialists and like-minded organisations to create four simple throughout 2017 is starting to bear fruit, but we have was about finding an easier way to get off their boats in an The Youth Education Team managed a number of different messages that we believe will better resonate with youngsters (right). a long way to go to change overall attitudes. emergency, for others it was about wearing lifejackets and outreach work programmes across the UK and Ireland with the aim RNLI youth materials are being updated with these new messages The earlier we can break the encouraging others to do so as well.’ of increasing the numbers of young people who engage with our and they will form the framework of a new suite of education drowning chain, the better prevention messages. Volunteer presenters and lifeguards continued resources due for release in 2018.

The RNLI is the charity that saves lives at sea Royal National Lifeboat Institution, a charity registered in England and Wales (209603) 13 and Scotland (SC037736). Registered charity number 20003326 in the Republic of Ireland 14 Lifesaving

We saved lives in many different ways last year – and the Lifesaving rescue and supervision provided by our brave volunteer 8,072 crews and lifeguards remained at the very heart of our work people assisted by lifeboat crews (8,643 in 2016)

Our mission to break the drowning chain translates directly into RNLI LIFEBOAT actions in our lifesaving strategy. Some of these interventions ACTIVITY 2017 are relatively new to us and will take years to fully implement while others, like our domestic emergency response and supervision, have been saving lives since 1824.

In 2017 we continued to provide a ring of safety from Lifeboat launches 238 lifeboat stations and 249 beaches. High to Low OUR CREWS 24,044 Our volunteer crews showed all kinds of courage and skill to save others in 2017. They launched 8,436 times and aided people assisted 8,072 people. Perhaps one of the unsung heroes of our fleet by our lifeguards is the inshore rescue hovercraft, which can reach areas that conventional lifeboats can’t, like mudflats and sand. (20,538 in 2016) Last spring our hovercraft crew at Morecambe launched on a 2-hour mission to save a teenager who was sinking in thick mud. The 15-year-old boy was stuck fast at a notorious spot in Morecambe Bay – where 23 cockle pickers drowned in 2004 – and a relative raised the alarm after their best efforts to free him failed. The RNLI hovercraft crew worked with coastguard rescue teams to safely reach the boy across the mudflats and free him using specialist mud rescue equipment.

OUR LIFEGUARDS Our lifeguards assisted 24,044 people overall in 2017. But rescue is 249 just a small component of a lifeguard’s role, and they also carried beaches patrolled out more than 3.3M preventative actions. For the first time, by RNLI lifeguards RNLI lifeguards patrolled Seaton; Runswick Bay; Camber Central, Camber West and Bexhill-on-Sea; Hastings Pelham, Hastings Pier (240 in 2016) and St Leonards; and Leasowe Bay.

15 16 Lifesaving Lifesaving

READY TO RESCUE: READY TO RESCUE: SUPPORTING THE COAST READY TO RESCUE: LIFEGUARDS TRAINING THAT COUNTS Every stretch of coastline is different and we constantly review LIFEBOATS frontline services to ensure they properly align to the risks and Getting cut off by the tide is an easy mistake to make. ‘If it wasn’t for them, demands of each area. In 2017 we significantly ramped up our This happened to sisters Lydia and Emily who were ‘We care analysis to help us find the right solutions – whether that be type exploring Holy Island with family when the sea came I wouldn’t be here today’ of boat, lifeguard service or local prevention work. Our rescue in fast and blocked their route back to Anglesey. a lot about and supervision services were found to be broadly well configured Lydia says: ‘Black clouds were coming and Daddy said When a bodyboard washed up onto Croyde Beach, but our preventative work in communities needs better support. we should stay in the shelter to keep dry. Mummy was Senior Lifeguard Freddie Hedger knew something was new all-weather what we do. We are fully committed to that in 2018. a bit worried and Emily was a little bit panicking.’ Luckily, wrong. He spotted its owner Mary Harkin out to sea, at the In terms of lifeboat cover, Union Hall became a permanent someone spotted them and Trearddur Bay lifeboat crew mercy of a powerful rip current. Freddie swam out to Mary and inshore That’s why station and we are working to provide the crew with appropriate came to the rescue. Emily says: ‘The RNLI boat came who was, by now, unconscious and face down in the water. lifeboats built facilities. We also established Carrybridge on Lough Erne, zooming around and the man got off and said: “We’re here He battled to protect her from the onslaught of waves, we train essentially placing both Enniskillen crews at two distinct stations to rescue you.” I felt scared because I didn’t know how we being dragged under himself at one point, while fellow 28 to better serve the area. Meanwhile, our crew at Clifden welcomed were going to get to the boat. But he said: “I’ll give you Lifeguard Sean Deasy skilfully negotiated dumping surf so hard’ the permanent allocation of an all-weather lifeboat following trials. a piggy back.”’ to get them onboard the rescue watercraft. The inshore lifeboat volunteers rescued a total The exhausted lifesavers got Mary to shore who, BUILDING CRAFT of 13 people from the island that day. Helm Daf Griffiths to everyone’s relief, was still breathing. Freddie and Sean In 2017 we continued to build and maintain the safest and most says: ‘It’s a treacherous bit of coast to be crossing in the began casualty care and carried her to waiting paramedics. capable craft possible for our volunteers. Staff at the Inshore dark, so we needed to get them off quickly.’ Mary, now fully recovered, says: ‘They put their lives on the Lifeboat Centre on the Isle of Wight built 8 new Atlantic 85s and SeaSafe lifeguards in Cox’s Bazar, Bangladesh, received 14 D class lifeboats. They also pioneered a modification to new line for me. If it wasn’t for them, I wouldn’t be here today.’ a framed certificate of thanks from the RNLI in 2017. outboard engines that will ensure our crews retain power in the Freddie received the RNLI’s Alison Saunders Lifeguarding The award comes after they rescued more than 100 people most extreme conditions and after capsize. Meanwhile, six new ‘Thank you for Award in 2017 for his heroic deeds. from a flooded village following RNLI flood training Last year BBC Two’s Saving Lives at Sea featured RNLI Shannon class lifeboats rolled off the production line at our All- rescuing us’ volunteer Kim Dugan putting her casualty care training into weather Lifeboat Centre in Poole – bound for Bridlington, Girvan, 69 Lytham St Annes, Selsey, Workington and the relief fleet. READY FOR ANYTHING Inshore rescue hovercraft practice when a man was hit by a spinning propeller after Training is fundamental to saving lives and our lifesavers receive launches (78 in 2016) a sailing dinghy capsized. world-class training to ensure they are ready for anything. He was among a group of sailors enjoying a trip out of They don’t just need boathandling skills – they learn everything Chichester when a sudden gust led to vessels capsizing and from navigation and engine repair to advanced first aid and sea people being thrown overboard. One of them was sucked survival. Each and every one of them received some kind of into the propeller of a passing cruiser. training in 2017, whether that was in their local community Kim, a lifeboat crew member and lifeguard, boarded one or at RNLI College in Poole. of the vessels with her crew mate Brittany to assess the In 2017 we built and We also share that training to build capability in other high- injured man – before dressing his wound and transferring risk countries. One example is the work we’ve been doing with him to Portsmouth lifeboat to be rushed to shore and maintained over 2,200 the Hellenic Rescue Team (HRT) on the Greek island of Lesvos. a waiting ambulance. Following initial RNLI training and the donation of two former Kim says: ‘We care a lot about what we do. That’s why pieces of lifesaving B class inshore lifeboats the HRT became fully operational in we train so hard to provide the best care when we need to. equipment – from lifeboats March 2017 and has carried out many rescues. We will continue £1,600 I sit the RNLI Casualty Care course every lifeguard season to support them with further training and assessment. Annual cost of training each and complete extra training so my qualification applies to and lifejackets to ATVs and what I do on the lifeboat too. We also do training on station crew member twice a week so we are ready for whatever is thrown at us.’ inshore rescue boats 17 18 Building for the future

Last year we laid more foundations for the future Building for – investing in infrastructure and finding new ways £145,953 to save lives and keep our crews safer energy saved the future and generated

Since 2015 the RNLI has been running a cost savings initiative, ONGOING INNOVATION looking at savings through procurement and continuous We look at any emerging technology that might enhance our improvement. By 2017 this has saved over £17M, which has search and rescue capabilities in the future too. Last year, our been reinvested into vital lifesaving work. Innovation team worked with academics and other experts to explore the benefits of unmanned aircraft – including tethered new renewable SMART SOLUTIONS balloons which are a cost-effective way of getting sensors in the Last year we brought in new technologies to help our people air. Together with key partners like the UK Coastguard, we will be energy achieve more with less. Our new digital backbone, Microsoft running an event in 2018 to test drones in a range of search and installations Dynamics AX, has already enhanced the way we manage and rescue scenarios. We’ll investigate if they could work together integrate activities across the organisation. One example is how with other rescue teams and assets, including our lifeboat crews. (6 in 2016) we can now analyse financial data using data cubes, which has In 2017 we also hosted a hackathon at RNLI College that saw 4 improved reporting for budget holders and is, ultimately, helping over 30 developers, designers and statisticians coming together us in financial control and saving money. to find new ways of using geospatial data to keep people safe in Elsewhere, e-learning technology has been making life and around the water. easier for volunteers. A new interactive course, Introduction to Navigation, supports our formal navigation course and means that crew can supplement their learning without the upheaval of travelling to RNLI College in Poole. It frees up capacity for our trainers too. We also tested the advantages of smartphone technology for international communities by building a Flood Training app to replace paper manuals. 2,000 production hours saved on every new Shannon class lifeboat

19 20 Building for the future Building for the future

BUILDING FOR THE FUTURE: BUILDING FOR THE FUTURE: RNLI LIFEBOAT STATIONS, BUILDING FOR THE FUTURE: KEEPING CREW SAFER BRICK BY BRICK LIFEGUARD UNITS AND THE BIGGER PICTURE Last year 100 crew members from across the UK and With a more capable lifeboat and a new station in a better FLOOD RESCUE TEAMS When James Probert suffered a cardiac arrest and collapsed Ireland tested new all-weather crew kit in a range of location, Llandudno lifesavers and those they rescue will IN 2017 in a Tenby car park last year, a passing member of the locations and conditions. The kit is tailored to meet the be safer than ever. public knew that trained RNLI people nearby could help. needs of both male and female crew – a major step forward Updating and replacing lifeboat stations is costly Scotland George Stottor, Angus Wyatt, Katie Sutton and Kirk Lester in both practicality and in terms of making women feel but essential if we are to ensure our lifesavers have the 46 lifeboat stations – lifeguards all trained in casualty care – arrived at the scene. more integrated (read more about inclusion and diversity facilities they need to save lives in the future. In 2017 7 lifeguard units They immediately started CPR and used a defibrillator on on page 38). Thanks to extensive trials and crew feedback, the RNLI completed 12 building projects – including new 1 flood rescue team the 58-year-old man. After 15 minutes of resuscitation, we will be rolling out the approved kit in 2018. Coxswain Shannon class lifeboat stations at Bridlington, Llandudno James’s heart started beating again and he slowly Martin Bowmer of Barry Dock says: ‘The new kit was and Selsey; a new slipway at Swanage; and upgrades to regained consciousness. specifically designed with input from those who will use Since then he’s had a triple heart bypass and is on the boathouses or facilities at Brighton, Criccieth, Howth, Northern Ireland it. It has the latest materials and technology that will road to recovery. Grateful James says: ‘It shows just how Skegness and Workington. 9 lifeboat stations undoubtedly result in better protection.’ valuable RNLI lifeguards are. Without them I would be dead.’ We also installed renewable energy sources in three 12 lifeguard units His daughter Louise added: ‘You normally think of lifeguards of those locations: Bridlington, Criccieth and Llandudno 1 flood rescue team ‘The new kit was specifically – and another at Loch Ness. Our solar, wind turbine and rescuing people from the sea or caring for people on beaches, heat pump installations generated and saved energy but they raced in the opposite direction to save my dad. Isle of Man designed with input from equivalent to £145,953 in 2017 and further reduced the England We cannot thank them enough.’ RNLI mascot Stormy Stan joins staff and volunteers in the 2017 Belfast Pride parade. RNLI’s carbon footprint. 5 lifeboat stations 107 lifeboat stations those who will use it’ Read more about our inclusion and diversity networks on page 38 184 lifeguard units 2 flood rescue teams ‘You normally think of Updating and replacing Ireland INTERNATIONAL THE BIGGER PICTURE 37 lifeboat stations Wales lifeguards rescuing Project Bhasa, an initiative to reduce drowning in the Barisal Sustainable stations, capable craft and dedicated, skilled people lifeboat stations is costly 30 lifeboat stations Division of Bangladesh, moved from research to implementation add up to something greater than saving lives on the water. 40 lifeguard units people from in 2017. Many interventions are now in place including crèches, The way in which the RNLI operates, who we are and how we but essential 3 flood rescue teams pools for swim training, first responders, village committees and interact adds a broader value to those we come in contact the sea’ community awareness initiatives. The next step is to transfer with. Our long-term aim is to properly quantify and measure Channel Islands these activities to local organisations and work with government this added social benefit so we always give more than we take. 4 lifeboat stations to secure policy and resources. By the end of 2019 we hope to see However, we can currently sum it up as: 6 lifeguard units a 40% reduction in drowning there. • Benefits to people – like helping individuals to develop new life skills. REFITTING AND REUSING • What we create – including capital investments During 2017 our team at the All-weather Lifeboat Centre reduced in communities. composite production by around 2,000 hours per boat. They • Environmental respect – like using renewables plan to reduce this further and consolidate their manufacturing and generating clean energy. area to release space for future refits. Meanwhile, our team at the • Economic advantages – like creating employment Inshore Lifeboat Centre refitted over 60 lifeboats and saved over and boosting tourism. 12 £200,000 by applying continuous improvement principles to their • Public reassurance – including the extra provision building projects processes. They also recycled several retired D class lifeboats of casualty care on land. completed to create new boarding boats for all-weather crews. They plan to convert around 30 more in the next few years. (16 in 2016) 21 22 People and fundraising

Our people were the crucial driving force behind every life saved, People and breakthrough made and foundation laid in 2017. Whether they £190.2M lent their support, time, courage or skills to our cause last year, raised by our people fundraising they all played a role in preventing drowning tragedies

People help the RNLI save lives in all sorts of ways – and some of of our 1,639 lifeguards who supervised beaches around the those roles have been central to our charity since 1824. There’s UK and Channel Islands. Over 17M people of all ages visited still an army of people prepared to go to the rescue, collect our lifeguarded beaches last summer, and many hundreds of 207,839 funds or give essential donations to the charity. Today we have thousands of them heard our beach safety messages. hours at sea more than 4,950 volunteer lifeboat crew members, over 23,000 Our supporters had a role to play too. As well as fundraisers and hundreds of thousands of supporters. Without watching the summer’s Respect the Water campaign videos given to rescues them, we couldn’t fund or operate a rescue service. (see page 5) they shared them on social media, meaning that and exercises Our work to find new ways to prevent drowning also means the Float to Live film had around 10M views on Facebook alone. that we have increased the opportunities for staff, volunteers and Those lifesaving messages were also shared by our high-profile by crew members supporters to save lives. For example, the Swim Safe partnership supporters who have huge followings, including our video took place in more locations than ever in 2017 (see page 13). featuring TV adventurer Ant Middleton. That wouldn’t have been possible without all the people who Ant also visited Tower lifeboat on the Thames to create gave days out of their calendars to teach new skills to more than a video for Mayday, our annual community fundraising 13,000 children. campaign. In 2017 our fundraisers and supporters worked Meanwhile, in school halls and youth groups across the UK together to raise £607,316 during the campaign. In October and Ireland, our education volunteers spoke to 520,279 children. they served up another fundraising success: people sat down to During the summer months, when more people flock to the Fish Suppers around the UK and Ireland, raising over £215,000. coast, we increased our safety work accordingly. At the peak And our quick-footed supporters, representing us in marathons of the season we had 150 face-to-face fundraisers who shared and other running events, covered some 3,600 miles in total 500,000+ safety messages with more than 109,000 beach goers and last year – the equivalent of travelling from Dublin to Chicago. supporters have recruited 16,385 as new supporters. They worked alongside many opted in to stay in touch

23 24 People and fundraising People and fundraising

LIFESAVING PEOPLE: LIFESAVING PEOPLE: LIFESAVING PEOPLE: SAVING LIVES AT SEA FUNDRAISERS A LASTING LEGACY In August 2014, at the age of 21, Alex Ellis-Roswell left his Two out of three lifeboat launches are only possible thanks to the gifts home to walk around the UK and Ireland. After his father we receive in Wills. And among the generous legacies we received had lost a long battle with illness, Alex had vowed to set in 2017 was one pledged by the late Richard Medcalfe. Richard had A superb opportunity to himself a challenge that would change his environment – and already devoted a large part of his life to the RNLI in his role as benefit others. So he decided to walk our coasts, checking in a volunteer fundraiser in Harrow. But his voluntary support wasn’t at every lifeboat station along the way, all in aid of the RNLI. 12 confined to London. showcase our lifesaving work ‘It has always been a charity I’ve supported,’ explains trustees He often made the 600-mile round trip to the lifeboat station at Alex. ‘The thousands of volunteers who risk their lives and – meet them on page 71 The Lizard, Cornwall – to attend fundraising meetings and events, and give up so much of their own time to save others in our most catch up with the local RNLI volunteers. Among them is Ned Nuzum, unforgiving environment – our sea – inspire me more than Lifeboat Operations Manager at The Lizard. ‘It was a sad loss when Our face-to-face fundraisers have become a firm fixture anybody else.’ Richard passed in 2016,’ says Ned. ‘But his dedicated support lives on at RNLI beaches, lifeboat stations and community events. Over 9,500 miles later, Alex reached the finish line in today. His legacy will help ensure our crew have everything they need Last year they inspired 16,385 new supporters to join us and November 2017 at Minnis Bay, Kent – the very spot where to save lives at sea for years to come.’ spoke to more than 109,000 people about how to keep safer he began his fundraising odyssey. He overcame knee pain, near water, sharing lifesaving skills for life. chicken pox, hurricane force winds and loneliness, to raise The teams also attended 233 RNLI branch-organised over £70,000. It’s a remarkable individual achievement, but events, alongside local volunteers. Tenby is just one of many Alex is quick to thank those who gave him food, shelter and lifeboat stations that enjoy the benefits of working closely moral support along the way. ‘It’s not true what you hear on with the face-to-face team. ‘We love having them around,’ the news,’ says Alex. ‘People really are very nice indeed!’ Richard’s dedicated says Branch Chairman David Morgan. ‘Tenby prides itself on being a station for the community – not just a place where support lives a lifeboat is launched – and they are part of that success.’ £5.7M Tenby is a shining example of how, through working on today collaboratively and sharing resources, more can be achieved Sales income raised by together. The face-to-face team regularly use the station our shop and branch as a fundraising base in the summer and attend all events. Last year this saw them recruiting 405 new supporters and volunteers collecting £3,488 in cash from nearby beaches.

In last year’s annual report we showed how the BBC series with lifeboat crews to make sure volunteers had new HD Meanwhile, volunteers in our branches and at more than Saving Lives at Sea reached new audiences with a four- cameras and knew how to use them – and that they could 165 RNLI shops generated sales in excess of £5.7M in 2017. part documentary about our lifeboat crews. In 2017 the deliver footage that could potentially be used by the Together with the volunteers who welcome people to our show was expanded to 10 1-hour episodes. It was a superb production company. museums and lifeboat stations, they also helped introduce opportunity to showcase our lifesaving rescue work, but Promoting the series and making the most of the a whole new generation of people to our lifesaving charity. it couldn’t have happened without huge commitment and publicity involved extra work and hours for our people, But we can’t do it all alone. Partnerships with other hard work from our people. whether they were taking part in photo shoots or providing organisations that can help us reach new audiences are therefore 23,000 The success of the series rested on the RNLI supplying social media support during and after each broadcast. It all crucial to the future of our lifesaving work. In 2017, we secured volunteer community a steady stream of footage that showed the breadth, led to average weekly viewing figures of 1.5M, RNLI website new partnerships with several companies, including Haven ‘People really are depth and importance of our rescue work. Our community traffic increasing by 500%, and a burst of donations and holidays who have pledged to help us raise funds and share fundraisers lifesaving, communications and engineering teams worked volunteering enquiries. safety advice with visiting families. very nice indeed!’ 25 26 Financial review

2017 2016 Change Ratio 2017 has, once again, proved to be a record year for legacy £M £M % % Financial income at over £135M. This is a 3.5% increase on 2016 levels, Legacies 135.1 130.5 3 69 Donations 49.6 51.5 (4) 25

which itself was an increase of 10% on 2015. This income has Trading activities – net 5.5 3.4 62 3 review allowed the RNLI to continue the work needed to save more Investment income – net 1.9 1.9 – 1 Charitable and other income 4.8 4.6 4 2 FOR THE YEAR ENDED 31 DECEMBER 2017 lives at sea – increasing our expenditure on the lifeboat service, safety, education and international work Total income 196.9 191.9 3 100 Income is shown net of trading costs and investment fees.

Overall, good financial management of our funds and our in dangerous environments, so we have increased spend in assets and liabilities has ensured that both investments and free identifying and reducing risks, which will continue into 2018 reserves have remained in line with 2016 levels. We remain in and beyond. In 2017 we worked to meet the requirements of a healthy financial position. General Data Protection Regulation (GDPR) to further protect Following two years of declining income from donations and our supporters and anyone else we hold data on, having already Income trading income – primarily resulting from our opt-in activities made significant inroads through our opt-in programme. £196.9M – it is good to report that this year’s combined total is in line Our financial position remains secure. Total investments have with 2016 levels. This continuing generosity from our supporters increased by 2%, standing at £277.9M, and our free reserves, allows us to spend more on protecting those who save lives and which are set aside for any short-term financial risks, remain also spend more on saving people’s lives. In addition, there was within the range prescribed by the trustees, at 11 months worth a £4M reduction in our fundraising costs, with the completion of of charitable expenditure. the opt-in project, and a reduction in marketing costs as we sent fewer communications to supporters. INCOME In 2017, we spent an additional £3.2M (2%) on charitable Total income increased by £5M (3%) in 2017 and it is encouraging activities in various operational areas. This spend included the to see legacy income continuing to grow with a 20% increase Legacies 69% rollout of new lifeboats, including six Shannon all-weather from 2014 levels. While most areas have remained stable this Donations 25% lifeboats, and the expansion of our lifeguard service. It also year, the most significant increase in percentage terms is in our Trading activities – net 3% allowed us to ramp up our safety and education work in the net trading income: up 62%. This is largely due to our ability Investment income – net 1% UK and Ireland – and in high-risk countries, such as Bangladesh, to run four lotteries a year once more, having cancelled some Charitable and other income 2% Tanzania and Ghana, while also securing a step-change in in 2016. support for drowning prevention at the United Nations. We gratefully acknowledge the efforts of our fundraisers We have also invested to protect our lifesavers and – volunteers and staff – who managed to stabilise income levels supporters from harm. Lifeboat crews and lifeguards work after the turbulence of our opt-in programme.

27 28 Financial review Financial review

COSTS (RUNNING AND CAPITAL) INVESTMENTS The actuarial gain of £22.8M, which compares to a loss The RNLI’s trustees ensure the overall health of the Our investment policy objective is to preserve and, if possible, of £67.9M in 2016, primarily reflects better than assumed organisation by closely monitoring our free reserves (the sums 2017 2016 Change Ratio Running costs are slightly below last year’s levels as increases equipment being produced by third party suppliers. However, enhance the real value of our assets by keeping an appropriate investment performance over the year and changes to longevity retained to withstand any short-term financial risk). At the £M £M % % in charitable expenditure have been offset by a reduction in lifeboat station construction costs have decreased significantly balance between maximising long-term returns while avoiding assumptions. At the end of 2017 the long-term liability, as end of 2017, these free reserves stood at £131.6M, which was Legacies and donations 27.2 31.2 (13) 15 fundraising costs with the end of the opt-in project. Cost-saving as we have experienced delays on some major projects, while undue risk and volatility in capital values. Given a number of defined by FRS102, was £50.5M. £16M lower than 2016 and, at 11 months worth of charitable Lifeboat service 40.5 37.3 9 23 initiatives are also starting to come to fruition with £7M of spend on other equipment has fallen with the Microsoft perceived risks to financial markets at this stage in the economic Further detailed information on RNLI pension schemes, expenditure, they remain comfortably within the trustees’ annual savings started this year that curbed the effect of inflation Dynamics AX system now live. cycle, not least those posed by Brexit to the UK and a resurgence including the current defined contribution scheme, can be requirement of 6–18 months. They include £53.7M of accrued Lifeboats, property 74.1 75.2 (1) 42 on our running costs. The most substantial changes are: of inflationary pressures, a significant weighting to absolute return found in Note 11. legacies, where money is only accessible to us once the estate and equipment • Lifeboat service costs increased by £3.2M in 2017. This was funds has been maintained. Investment gains were £10.5M and is finalised by the executor. Lifeguard rescue 20.0 19.9 1 11 mainly to improve the support we give to our lifesavers, 2017 2016 Change Ratio an overall return, including net investment income, of 4.7% FINANCIAL HEALTH This shows that the finances of the RNLI remain healthy. International 2.9 2.1 38 2 especially in reducing the risks that they are exposed to and £M £M % % was achieved. As of 31 December 2017 the RNLI had consolidated net assets But we continue to operate in an uncertain economic Safety, education keeping them safe. It also includes substantial increases in Lifeboat stations 10.9 20.6 (47) 28 In the last 5 years, overall investment returns, including net of £766.3M, primarily representing fixed assets of £454.7M and environment and need significant investment for our lifesaving 11.8 11.6 2 7 and awareness costs beyond our control, such as fuel: a £1M increase in 2017. Lifeboats and launching investment income, have yielded an annual 6.3% against the investments of £277.9M. Total funds increased by £53.7M, with services and our infrastructure. We continue to depend on the 22.6 18.8 20 58 • Fundraising expenditure has significantly decreased thanks equipment weighted average market benchmark of 6.4%. This compares an operating surplus of £30.9M and pension gains of £22.8M. public’s generosity to support our work in saving lives at sea. Total expenditure 176.5 177.3 – 100 to the completion of the opt-in project in 2016 and reduced favourably against our current planning target of 4.6% and allows The substantial increase in bank and cash in 2017 was due to The trustees have agreed the RNLI’s 2018 financial review (which Other equipment Expenditure excludes trading costs and investment fees, which are netted from income. marketing costs overall as we send fewer communications to 5.8 10.1 (43) 14 us to look ahead with a degree of certainty, especially for the the receipt of a large Irish legacy in December that has been extends to 2020*), updated on an annual basis, as well as our supporters: an overall reduction of £4M. and property larger capital projects. held in Ireland to avoid any currency loss in transfer. Otherwise, principal financial risks. They believe that the RNLI has sufficient • Lifeboat equipment and property costs have fallen by £1.1M, Total capital expenditure 39.3 49.5 (21) 100 bank and cash levels are comparatively low (less than 1 month’s resources to continue operating for the foreseeable future, and thanks mainly to continuous improvement events and PENSIONS – ACTUARIAL GAINS expenditure) to maximise returns by transferring to investments, financial statements are prepared in the knowledge that the RNLI procurement cost-saving initiatives. The RNLI operates a defined contribution pension scheme for given the liquid nature of certain investments. is a viable organisation. • Internationally, costs increased by £0.8M. This includes its employees. It also has a legacy defined benefit pension This increase in funds has been invested in two main areas. an increase in grants for high-risk areas such as the Barisal scheme which was closed to new entrants from 1 January 2007. The first is in fixed assets, both for assets purchased in 2017, Running costs Division in Bangladesh, Zanzibar in Tanzania and Accra On 30 September 2012 this was also closed to future benefit an £8.9M increase, and also an increase in planned capital 2017 2016 Change Ratio £176.5M in Ghana. accrual, to help mitigate any future liability. expenditure, a £15.6M increase; while the second is in funds £M £M % % • Support costs increased by £3.3M in 2017 (see Note 5) for Capital Despite this the RNLI, like all employers who ran such held for restricted purposes, an increase of £14.7M. Endowed funds 16.4 15.9 3 2 a variety of reasons. Investing in continuous improvement, schemes, will continue to have ongoing liabilities, the funding expenditure Restricted funds 134.8 120.1 12 18 change and procurement initiatives has cost us an additional £39.3M of which is agreed between the trustees of the pension scheme £0.8M in 2017, but we have reaped the benefit of a and the RNLI’s own trustees. These liabilities can fluctuate Fixed asset funds 454.7 445.8 2 59 Planned capital further £7M of annual savings. Investment in technology substantially as assumptions change at a point in time. 79.3 63.7 24 10 has increased by £0.6M, but will improve the way we expenditure Legacies and donations 15% £7M Free reserves 131.6 147.6 (11) 17 communicate, manage information and process work. cost saving initiatives Lifeboat service 23% There are also the continuing regulatory requirements Pension reserve (50.5) (80.5) 37 (6) Lifeboats, property and equipment 42% from UK government – with work on GDPR costing us an started in 2017 Total funds 766.3 712.6 8 100 Lifeguard rescue 11% additional £0.8M in 2017 and the apprenticeship levy Lifeboat stations 28% International 2% another £0.3M. Lifeboats and launching equipment 58% Safety, education and awareness 7% Other equipment and property 14% *The latest business plan update extends to 2020, which is considered Capital costs have reduced by £10.2M in comparison with last appropriate for the organisation to reflect its forecast income, including We aim, through our Continuous year. This was despite a considerable increase in lifeboat and months’ legacy forecasts, and its capital plans with reasonable accuracy, while also Improvement programme, to save launching equipment costs as the All-weather Lifeboat Centre is free reserves giving a reasonable time period to change plans. now in its third year and working to the drumbeat of producing of charitable money to reinvest in saving lives six Shannon class lifeboats a year, with related launching £2.9M international work costs in 2017 11 expenditure 29 30 Financial review Financial review

FINANCIAL POLICIES FUND ACCOUNTING INVESTMENT POLICY The RNLI’s funds are held for a variety of purposes, to ensure that The RNLI’s funds (excluding fixed assets) are substantially the organisation can operate as a going concern in the future and held in investments. The RNLI’s Investment Policy is reviewed also fulfil its legal obligations. They can be summarised as: regularly by the Investment Committee and with our • Fixed asset funds – the bulk of funds held and they represent investment advisers. the operational assets of the RNLI, without which we We seek to adopt a prudent and well-diversified investment could not operate. The vast majority of these are lifeboats, stance that balances potential return with appropriate risk. launching equipment and operational properties, such as At the same time, the trustees are conscious that some level of lifeboat stations and lifeguard units. volatility is inevitable given the nature of financial markets. Risk • Endowed and restricted funds – held under trust law and can is spread across different asset classes and between different only be used for particular purposes, as specified or agreed styles of investment management. Investments are held by with the donor. For example, if we have an appeal to fund the independent custodian Northern Trust, who also measured a lifeboat, these donations will be held until we construct £454.7M £134.8M performance during the year. that lifeboat. The RNLI’s investments are substantially held in pooled • Designated funds – set aside by the trustees for a particular fixed asset funds restricted funds funds, some of which are actively managed, some of which purpose. For the RNLI, we have created a planned capital (including lifeboats and stations) (can only be spent as donor directs) track indices. We review the policies of our active managers expenditure fund that is held to assure contractors on longer- on a rotational basis in respect of social, environmental and term projects, such as lifeboat station construction, that we ethical policies and all our managers are signatories to the have the funds to complete those projects. All of these are United Nations Principles of Responsible Investment. That committed funds. said we recognise we have limited scope to influence the • General funds, or free reserves – sums that are freely underlying investments in pooled funds and would be obliged available for general use. These are held at a level to to divest were we to identify an investment that conflicted withstand any short-term financial risks, the main ones with our charitable objectives. Finally, in addition to reviewing being a major setback in financial markets, fluctuations in our investment portfolio, the performance of our investment key sources of income (such as legacies) and pension funding advisers is also monitored by RNLI staff and our own issues. Around 40% of these funds relate to legacy accruals, INVESTMENT STRATEGY Investment Committee. which will take time to be received. The RNLI’s investments are held either for restricted purposes or as a reserve against any future shortfall in FUNDS POLICY income against expenditure. We seek to maintain and, The trustees review our Funds Policy each year. In conducting if possible, enhance the real value of our funds with this review, they take into account best practice and past investments that are in line with our business plan. consultations with the Charity Commission. The policy To achieve this, we maintain an appropriate balance remains unchanged. INVESTMENT CRITERIA between maximising long-term returns and avoiding The trustees have considered carefully the requirements undue risk and volatility in capital values. Our investments of the Statement of Recommended Practice SORP and constitute a well-diversified portfolio. The risk is spread £79.3M the Charity Commission’s revised guidance note CC14 across a range of asset classes, styles of investment (issued in October 2011) and they do not believe there management, and investment organisations. Investment designated funds is any listed investment adverse to the purpose of the manager performance is measured against established (held as assurance for charity (saving lives at sea). market benchmarks suitable for each asset class. long-term contracts) Trainer Tom Denman takes the helm of a D class lifeboat during a night exercise in the sea survival pool at RNLI College

31 32 Governance, risk management and sustainability

The RNLI is a registered charity, controlled by its Trustee Board, Governance and depends on volunteers and staff. RISK MANAGEMENT Read on to find out how the charity is run – and how we work AND SUSTAINABILITY with our communities, manage risk, and ensure we are building a sustainable organisation that’s fit for the future

THE CHARITY CODE OF not a finance professional. However, WHO GOVERNS THE RNLI? GOVERNANCE – WHAT IT the committee has two senior financial The RNLI is controlled by its Trustee Board, MEANS TO US professionals as members, plus another which is a body of volunteers with distinguished The RNLI takes its governance responsibilities trustee (who is also the treasurer) careers in a wide variety of fields. They come seriously and, as a large charity, aims to have as members. from all parts of the UK and Ireland and many a governance framework that is fit for purpose, • Diversity management practices have had a lifelong interest in the sea. Last year compliant and efficient. In 2017 the new We are currently seeking to improve our a quarter of our trustees were women. The Royal National Lifeboat Institution Charity Code of Governance was launched, with ability to engage and harness a more diverse Names of RNLI trustees who served at any (RNLI) was founded in 1824. It was a recommendation that charities review their level governance membership. A working group time during 2017 and/or were trustees of the incorporated under a Royal Charter in of application and to explain any aspects of the has been formed and will report in 2018 on charity as at the date of this report, together 1860, with Supplemental Charters granted code they were not applying. In our review, we how to improve this. with the names of the chief executive, other in 1932, 1986, 2002 and 2011. carried out a detailed examination of each element • Charity stakeholder communications and members of the Executive Team, and other of the code: engagement plans relevant people and organisations, are given The RNLI is registered as a charity in • organisational purpose While we have a managed communications on pages 71–75, alongside the overall England and Wales (209603), Scotland • leadership process for specific activities and management structure. (SC037736) and the Republic of Ireland • integrity stakeholders who support or assist the (20003326). The address of the registered • decision making, risk and control charity, we do not have an overall strategy WHEN DO THEY MEET? office is West Quay Road, Poole, Dorset, • board effectiveness for everyone who could be considered as The Trustee Board meets formally at least four BH15 1HZ. • diversity part of the widest group of stakeholders. times a year. We also hold a twice-yearly Board • openness and accountability. The trustees will be considering this in 2018. and Executive Team workshop to discuss the The RNLI also has four wholly owned strategic opportunities and risks we may face in subsidiaries registered in England and Our review found that we apply the code with a few In this section and the Policies, principles and the future. In 2017 their discussions included an Wales, although two are currently dormant exceptions. The main areas where we differ from standards pages, you can find out how we are external review of the board’s performance, our and in the process of being struck off the recommendations are: applying the Charity Code of Governance across income generation principles, Reserves Policy, (see note 2, page 54). Each is managed by • The Audit and Risk Committee chairmanship our work. and Lifeguarding Strategy. a board of directors to ensure that company The committee is chaired by a trustee law requirements are met and business with significant senior leadership and activities are properly managed. management experience. They are 33 34 Governance, risk management and sustainability Governance, risk management and sustainability

HOW DOES THE BOARD REFRESH Trustees are appointed from within and HOW DOES THE BOARD AVOID WHAT ARE THE TRUSTEES’ for that period. In preparing these financial The trustees are responsible for keeping Committee is a committee of the Trustee Board, ITS SKILLS AND KNOWLEDGE? by our Council which, in turn, provides broad CONFLICTS OF INTEREST AND FINANCIAL RESPONSIBILITIES? statements, the trustees are required to: proper accounting records. These must be Risk meeting at least twice a year to review the work Trustee Board members serve a 3-year term, advice and support to the trustees. Members ENSURE IT IS PERFORMING TO The trustees are responsible for preparing the • select suitable accounting policies and sufficient to show and explain the charity’s of external and internal auditors and the key and may be reappointed for up to a further of the Council may be proposed to the THE HIGHEST STANDARD? Trustees’ Report and the financial statements in then apply them consistently and the group’s transactions, and disclose management risks to the RNLI. The committee monitors the two succeeding terms. Following this, after Membership Nomination Committee by the The RNLI operates a Conflict of Interest Policy. accordance with applicable law and regulations. • make judgements and estimates that are with reasonable accuracy at any time the resulting risk profile and reports its findings to a 3-year break, trustees can be reappointed. trustees or a governor. Conflicts of interest are collated annually and Charity law requires the trustees to prepare reasonable and prudent financial position of the charity and the group, Risk management is at the heart of the RNLI’s the Trustee Board. Consideration is given to people with a range On appointment, new trustees have an new declarations made and recorded at the financial statements for each financial year in • state whether applicable accounting and enable them to ensure that the financial purpose and strategy – and it’s not just about However, risks cannot always be prevented of skills and experience from a cross-section of induction programme and a reference manual start of every formal meeting. accordance with United Kingdom Generally standards have been followed, subject statements comply with the UK Charities Act reducing the risk of drowning. Through saving and major incidents can still happen. Should sectors and industries. to familiarise themselves with the work of the In 2017, for the first time, the board Accepted Accounting Practice (United Kingdom to any material departures disclosed and 2011 and applicable accounting regulations. lives in dangerous and demanding conditions, the need arise, the RNLI has a framework Council members serve a 3-year term, and RNLI and their role requirements. Inductions reviewed its performance through a specialist Accounting Standards and applicable law). explained in the financial statements They are also responsible for safeguarding our lifesavers, support staff and operational for managing major incidents and a crisis may be re-elected by the governors for up to for trustees, Council members and committee external agency in order to create a board Under charity law, the trustees must not • prepare the financial statements on the assets of the charity and the group – and, assets are all exposed to risk. We are fully management plan that is reviewed and a further two succeeding terms. We aim to members cover their core responsibilities, development plan. The main findings of this approve the financial statements unless they are the going-concern basis unless it is therefore, for taking reasonable steps to prevent committed to ensuring that these risks are exercised on a regular basis. match the skills in the Council to our strategic plus a tailored section personalised to meet report were: satisfied that they give a true and fair view of inappropriate to presume that the charity and detect fraud and other irregularities. managed so that our volunteers and staff are goals and business plan needs as well. individuals’ needs. • Overall it is a high performing board with the state of affairs of the charity and the group, will continue to operate. as safe as possible. In 2017, for the first time, we ran a great commitment and experience within. and of its, and the group’s, surplus or deficit KEY RISKS FACED BY THE recruitment campaign to find Council members HOW DOES THE • There is an opportunity to review the RNLI AND HOW WE ARE from our RNLI communities. This new approach BOARD DISCHARGE ITS balance of board agendas, so more time ‘Risk management MANAGING THEM aims to ensure that our communities are RESPONSIBILITIES? can be spent on strategic discussion and COMPLIANCE represented in the governance of the RNLI, and In 2017, as part of our normal annual review constructive challenge. STATEMENT OF is at the heart of the There are ever-increasing ethical, legal and that we are making even better use of the skills, of the Governing Regulations, the Trustee • Trustees could benefit from spending more PUBLIC BENEFIT regulatory obligations being placed on all talent and knowledge we have. Periodic training Board reviewed their terms of reference and time together informally. The RNLI provides public benefit RNLI’s purpose organisations, including charities. We recognise and workshop sessions are also held for the the Matters Reserved for the Board Statement. as a charity by saving lives at sea. the importance of having a thorough and trustee body as a whole. This makes clear the board’s responsibilities A board development plan is now being Our trustees have complied with and strategy’ resilient approach to managing compliance, and where there are clear delegated authorities produced from these findings, along with the their duty in accordance with the both to those external requirements and to the HOW ARE to act on behalf of the board. The delegated outputs of the review against the new Charity UK Charities Act 2011 to follow the Effective risk management is also key internal policies and rules that we set. During APPOINTMENTS MADE? authorities are discharged through the Code of Governance. Charity Commission’s guidance on to successfully delivering our strategy and 2017 we further developed our Compliance The Membership Nomination Committee committees of the Trustee Board, or through the operation of this public benefit. developing the RNLI for a sustainable future. Assurance Framework, establishing the reviews the names proposed for the Council and the chief executive. The chief executive is The governments of the UK and the An organisation-wide risk management roles of compliance duty holders covering submits its recommendations to the Annual responsible to the board for the day-to-day Our communities Republic of Ireland have a statutory approach is in place. This identifies our key 12 compliance risk areas and developing our General Meeting (AGM) for election by the running of the RNLI and the execution of the duty to provide a maritime search and strategic and operational risks and ensures performance monitoring capabilities. governors. In 2017 our AGM was scheduled to overall RNLI strategy and policies decided by are represented in rescue service. The UK Coastguard they are effectively managed through clear be held in Glasgow but, due to being inquorate, the Trustee Board. A full list of Trustee Board and the Irish Coast Guard initiate accountability and escalation when needed. it was run again at Poole in September. committees can be found on pages 73–74. the governance of search and rescue, and rely heavily During 2017 we continued to embed our The Membership Nomination Committee is Each Trustee Board committee has defined on the RNLI’s expertise and resources enterprise risk management framework, and made up of the chairman, the deputy chairmen terms of reference, detailing the delegated the RNLI and we are to save lives at sea. The RNLI works this has led to a number of significant mitigation and the chief executive. An additional trustee authorities where appropriate. These terms independently of government and activities to reduce strategic risks, particularly in and Council member also currently sit on the were all reviewed in 2017, to ensure alignment making better use relies on donations to meet the cost of relation to improving our information security, Membership Nomination Committee, although with the Matters Reserved for the Board providing this public service. data governance and compliance assurance. this is not a mandatory requirement of the Statement. The committees enable experienced of skills, talent and The Trustee Board, its committees and the committee’s terms of reference. volunteer specialists to contribute to key knowledge Volunteer crew and shore crew at Lytham Executive Team review risks on an ongoing basis, 2,190 aspects of the RNLI’s affairs. St Annes return to station during a launch evaluating the mitigations that are in place and people received safety, health and and recovery exercise identifying any new risks. The Audit and Risk environmental training in 2017 35 36 Governance, risk management and sustainability Governance, risk management and sustainability

HEALTH AND SAFETY and moral compliance. We supported policy the financial risk to future fundraising income, SERIOUS INCIDENT REPORTING provision of lifesaving equipment to our beaches OUR NETWORKS This continues to be a priority and we aim implementation across the organisation. With and the challenge of changing how we collected In line with our Serious Incident Reporting Policy Developing a and lifeboat stations around the coast. We also The Disability Network had a very successful to constantly improve our health and safety a new team of SHE professionals covering our and stored data. We met our programme criteria, the trustees reported three serious run a number of shops selling RNLI merchandise launch at the start of 2017 with a campaign performance by reducing the number of operational lifesaving areas, we are supporting targets at the beginning of 2017 and continued incidents to the Charity Commission in 2017. sustainable RNLI and produce fundraising and education highlighting invisible disabilities. It continued to incidents that cause harm or ill health to our people in all reaches of the RNLI. to embed new ways of working throughout The incidents were one relating to property materials, used by various teams throughout provide support to people around the RNLI and volunteers, staff and members of the public. We are actively recruiting Safety, Health the year. We established a strong governance damage, one alleged data breach, and one We aim to make a sustainable RNLI that creates the UK and Ireland. We have a training centre advice to the organisation on disability issues. We are fully committed to looking after our and Environment Local Liaisons (SHELLs) across framework and continue to manage any safeguarding matter. more value than it takes. We will achieve this by: with accommodation and catering at our In support of Deaf Awareness Week, some of the people and anyone who could be affected by the organisation to be local champions. This is associated risks. We are developing our opt-in • ensuring ethical behaviour is at the heart Headquarters in Poole alongside traditional network ran successful interactive sessions to our actions. To do this: a voluntary role and has proven successful in approach with the implementation of GDPR KEEPING CHILDREN AND of our culture and that the RNLI values are office functions, warehousing and logistics. raise awareness of the impact of hearing loss. • Our safety management system ensures many areas. SHELLs help disseminate messages personal information legislation in May 2018. VULNERABLE ADULTS SAFE lived every day, everywhere, by everyone We have a clear set of values that underpin Our LGBT+ Network saw staff and volunteers health and safety is an integral part of how across the organisation and are actively involved Our activities can often involve interaction at the organisation the strong ethical position that is expected by from across the RNLI taking part in a number we operate and awareness is maintained at with addressing short-term problems and FINANCIAL RISK with children and vulnerable adults. All of our • considering our social impact and how we our supporters, volunteers and staff. This ethos of 2017 pride events. We flew the rainbow the highest possible level. identifying longer-term requirements. We are The most significant financial risks for the people have a moral and legal responsibility add value to communities and individuals is carried through into our policies. flag from many lifeboat stations in support • Safety, Health and Environment (SHE) is hoping to increase their numbers as we further RNLI are in investments, pension liabilities to look after the young people and vulnerable • being more inclusive and transparent in our We have a developing Compliance of International Day Against Homophobia, the first item discussed at the Executive embed SHE in everything we do. and income uncertainty. The RNLI reviews adults they may meet, work or volunteer with planning and decision-making Management Framework, which takes into Biphobia and Transphobia and the network also Team meetings. its financial plans on a regular basis and at the RNLI. Whether our volunteers or staff • empowering and supporting our people and account our corporate ethical position and we supported National Coming Out Day for the • A thorough training regime is in place for INFORMATION SECURITY manages these significant risks accordingly, are out on a rescue, educating others or running communities to make positive choices and are building this into our governance approach. first time. all lifeboat crews, lifeguards and volunteers We fully recognise the importance of through income pipelines, budgetary control, fundraising events, we are absolutely committed reduce risk This will support continual improvement of our Engineering and Asset Management continue – supported by an ongoing programme of defending our IT systems from malicious attacks programme management and capital planning. to ensuring the protection and support of young • managing and reducing our negative policies, procedures and assurance mechanisms. to support women in engineering with an event internal health and safety promotions and and protecting the information we hold from In particular, investment strategy for the people and vulnerable adults so they can live environmental impacts, and optimising our that originated from the Women’s Network. awareness campaigns. unauthorised access and misuse. Information RNLI’s and the pension scheme’s investments free from harm, abuse and neglect. positive environmental opportunities ELIMINATION OF MODERN This has now become part of business as usual • Operational policies and procedures security risk status is regularly reported to the are managed at committee level, using We have a robust safeguarding policy in • ensuring we are aware of and consider the SLAVERY AND HUMAN in terms of demonstrating our commitment to continue to be developed and improved strategic risk management board. professional investment advisers to minimise place and this is supported by training and wider social and environmental impacts of TRAFFICKING gender equality. to maintain best practice and compliance Lessons learned throughout 2017 are risk and maximise return. In relation to pension guidance, with measures to manage concerns our economic choices. The RNLI does not accept modern slavery in To close 2017, the Women’s Network hosted to high standards. forefront in mind as we plan for 2018. liabilities, the RNLI employs a pensions actuary effectively and protect those who are most our operations or supply chain, and will work a joint networking event that focused on a • We have invested in additional resource to The impact of cyber threats continues, as to advise on the assumptions and calculations vulnerable. This has been cascaded to the whole Our sustainability approach and our governance with suppliers to ensure compliance with the debate on the theme of men as allies. Staff support the implementation and assurance demonstrated during the highly publicised needed for our annual pension negotiations organisation. We are proactive in identifying and compliance frameworks will ensure that our UK Modern Slavery Act 2015. attended from companies including JP Morgan of policies in lifesaving delivery, and to international WannaCry ransomware outbreak. with the pension scheme trustees. Income and managing potential risk, and between 2015 objectives are delivered through all our policies. Additionally, we are committed to working and LV and male allies from some of these conduct investigations into incidents and Tailored cyber-security awareness training, uncertainty is managed through a funding and 2018, 14 formal safeguarding concerns They help provide assurance that we are heading with our partners and suppliers to ensure that organisations were represented on the panel. near misses when they occur. This means actively applying security updates to our strategy that reviews income pipelines through were raised. These were cases where a potential in the right direction and that good progress is human trafficking and slavery are not taking The event gave us the opportunity to showcase that all necessary steps can be taken to computer environment, and regular the four main sources of income to ensure risk to young people or vulnerable adults was being made. place within our organisation or supply chain. the progress we are making towards becoming prevent recurrence. penetration testing are helping to reduce our targets are met, both short-term and long-term. identified and logged, and where we were As part of this approach we are in the process a more inclusive and diverse organisation. • We also employ two specialist investigators exposure in this area. Progression towards In managing expenditure risk, the RNLI able to take action to ensure that this risk did SUPPLY CHAIN MANAGEMENT of developing our next-generation procurement We are also developing plans to introduce to lead high-level investigations into any compliance with the impending General Data ensures financial rigour through budgetary not materialise. While we are vigilant in our We are also working to improve the cost and supply strategy. a network of champions in 2018 to keep up serious incidents, and those with the Protection Regulation (GDPR) legislation control and cost-saving initiatives, such as its safeguarding duties, it does not mean we are effectiveness and sustainability of our supply the momentum of local groups and ensure potential to have been serious. is also helping to improve our overall Supply Chain Transformation programme and immune from issues and the trustees have chain and have a supply chain director dedicated INCLUSION AND DIVERSITY that we have a mixture of volunteers and staff information security position. continuous improvement work. reported one safeguarding issue to the Charity to this initiative. We have a varied supply chain We are working to be a truly inclusive supporting and advocating inclusion at the RNLI. Last year saw a number of significant Mitigating these risks is the RNLI’s Funds Commission since 2015. In all circumstances, and broad supplier base that includes materials organisation. During 2017 there were a number developments in keeping our people, properties SUPPORTER DATA AND Strategy and its free reserves, which are set cases have been dealt with robustly. Where to support the construction of high-tech of achievements that demonstrated progress and environment safe. We continued to develop COMMUNICATIONS at a level to withstand any short-term appropriate, we have worked with and reported lifeboats at our lifeboat centres in Poole and towards this. Our goal is to be truly inclusive – to benefit from diversity our safety management system and proactive Our decision to move to an opt-in marketing financial risks. concerns to the relevant external bodies and in East Cowes on the Isle of Wight, and the and appreciate everyone for their individual contribution safety culture, which demonstrates our legal approach by 1 January 2017 recognised both internally disciplinary action has been taken. 37 38 Governance, risk management and sustainability Governance, risk management and sustainability

ONGOING WORK and awareness are required, before being rolled environmental element externally audited ENERGY in accordance with our policy. In 2017 we In 2017 we worked with three professional having – and retaining – one of the highest Fundraising Practice. However, the RNLI aims The Stonewall Workplace Equality Index out widely in 2018. in isolation. We will review our approach We are working towards a 20% reduction in received 409 complaints, 250 of which were fundraising organisations and we were part levels of donor and supporter trust within the to exceed these by applying our own additional benchmarked us in 10th place out of 12 charities We have also initiated some work on how to the verification of our safety, health and our energy by 2020 and aspire to be carbon related to operations – a 410% increase on of one fundraising consortium. Each of these charity sector. fundraising standards to ensure that we are who participated, and in 412th place out of to make the Council and trustees more inclusive environmental management system in 2018. neutral for electricity and gas by 2024. Our 2016. Of these, 217 were directly linked to the undertakes professional fundraising on our The RNLI takes its responsibility for open, honest and respectful in all cases. It is this 439 participating organisations. We have taken and diverse. After a successful workshop with RNLI Headquarters is located on Holes Bay Estates Team continues to grow our renewables temporary closure of St Helier Lifeboat Station. behalf by recruiting payroll givers. We have managing supporters’ donations very seriously approach that has led us to manage and run action on the resulting recommendations, Council members in November, a working group in Dorset, which is part of the Poole Harbour portfolio, generating energy and savings of We received 145 fundraising complaints but a formal agreement with each of them, with and applies rigorous financial controls to ensure internal compliance teams rather than outsource particularly the development of more inclusive of interested volunteers from the Council began Special Protection Area due to significant £145,953 in 2017, which despite the poor this is very low in the context of our levels of specified standards of performance. We also funds are monitored, tracked and go to the this activity as some charities do. We are satisfied policies, the updating of the current Inclusion work on a series of recommendations. numbers of feeding and roosting birds there. weather was on par with 2016. During 2018 we activity. Of those 145, only 4 would usually have monitor their approaches in order to protect right places at the right time. In doing this, the that we meet all current standards. and Equalities Policy, and the delivery of Working in partnership with Natural plan to install a further 60kW of solar capacity. been reported to the Fundraising Regulator. donors, supporters and the organisation from RNLI strives to make the supporters’ experience more training. ENVIRONMENT England, Dorset Wildlife Trust and the We are waiting for confirmation on what poor practices. simple – making it easy to donate in a way that In 2017, we rolled out inclusive leadership ENVIRONMENTAL MANAGEMENT Association of Inshore Fisheries and WASTE information the Fundraising Regulator requires In 2017, we worked with 38 commercial suits individuals, whether that’s online, by post, training to leaders in community lifesaving. We decided not to have external verification Conservation Authorities, we installed screens The RNLI is committed to reducing waste and from us for its complaints process review participators. Of these, 28 were centrally over the phone or through other means. A new training package was developed to of our environmental management system at RNLI College that inform visitors about the aspires to sending zero waste to landfill by this year. coordinated with formal agreements in place. promote the core behavioural message about to the ISO 14001 standard in 2017. We are wonderful environment and wildlife – and how 2024. We are developing our understanding The remaining 10 were coordinated within our PROTECTING THE VULNERABLE respecting other people’s views, interests and actively integrating our health and safety and they can keep safe exploring it. of the types and quantities of RNLI waste and CONTACTING OUR SUPPORTERS AND community branch network. Of these, five have The RNLI takes its responsibility towards uniqueness. This is now being delivered to environmental management systems and how to track our progress. To reach our goal we SUPERVISING OUR FUNDRAISERS formal agreements in place. Formal agreements supporters who may be considered to be in managers in locations where additional support felt that it was not adding value having the will embed waste hierarchy thinking, which is The RNLI prides itself on a high standard of for the remaining five will be developed in 2018. vulnerable circumstances very seriously. Our to eliminate, reduce, reuse, recycle and recover ethical fundraising and we continually review The trustees are aware of the need to in-house Supporter Care Team has been trained energy from waste before considering disposal how we contact the public to ask for support. comply with new regulations from the Charities to respond sensitively and appropriately to A SUSTAINABLE RNLI THAT CREATES to landfill. (Protection and Social Investment) Act 2016 that any individual whom they might consider to MORE VALUE THAN WE TAKE Economic ‘The RNLI remains came into effect for this accounting period. The be in a vulnerable circumstance. We continue • Product selection FUNDRAISING STANDARDS regulations required the RNLI to change the to expand our work in this area through the • Suppliers’ sustainability OPEN AND ACCOUNTABLE committed to approach we have to commercial participators, addition of further guidance notes to our credentials The RNLI works hard to ensure that everyone professional fundraisers and our contracts with suite of policy support materials for specific Environment • Investment criteria supporting the charity understands how their meeting its supporters’ them. We have changed our contracts to ensure fundraising environments. • Legal compliance • Fundraising standards money will be used to save lives at sea. This is they comply going forward. • Energy • Transparent financial reflected in the low levels of negative feedback expectations by COMPLIANCE WITH FUNDRAISING Environment • Waste Economic reporting and complaints received. When we receive PROTECTING OUR REPUTATION, LAWS AND REGULATION • Water complaints, we respond on a one-to-one basis acting ethically’ MONEY AND OTHER ASSETS We recognise that fundraising regulation is • Transport as quickly as possible and we annually complete As a charity, gaining supporters’ trust changing – our Legal Team advises fundraising • Raw material use a complaints return for the Fundraising This ensures that we follow regulations, meet is incredibly important. The RNLI must teams of their responsibilities and keeps them • Habitats and biodiversity Regulator. For 2017 and 2018 the Fundraising our own high standards and exceed the public’s demonstrate that it is a responsible and worthy updated with regard to any amendments. Regulator is taking a 2-year pause to undertake expectations. Following our decision to move recipient of supporters’ generous donations. We The trustees are satisfied that the RNLI Sustainable Social and Community a thorough review of the purpose and content of to opt-in communications (whereby we will therefore work hard to ensure that we manage adhered to the appropriate fundraising • Impacts on health and wellbeing the complaints report it produces upon receipt only contact supporters and the public if they our money and other assets responsibly and do standards in 2017. The RNLI is a paid-up • Health and safety of charities’ complaints returns. Therefore, it is have given us express permission to do so), the all we can to maintain our good reputation by member of the Fundraising Regulator. • Equal opportunities only requesting data from 60 charities, including RNLI is working hard to ensure that all staff being transparent and trustworthy. • Inclusion and diversity Social and the RNLI, for 2017. and volunteers understand the implications of The decision to move to opt-in supporter COMPLIANCE WITH • Stakeholder engagement Community this new approach and are fully aware of communication was a clear statement that RECOGNISED STANDARDS • Volunteer engagement COMPLAINTS AND NEGATIVE FEEDBACK their responsibilities. the RNLI remains committed to meeting its Each fundraising team is responsible for making • Fair and equal pay We continue to record and report all complaints RNLI staff and volunteers carry out the vast supporters’ expectations by acting ethically. sure that they are compliant with the standards received. Response times and levels have been majority of the charity’s fundraising activities. We believe that this approach has led to us laid out in the Fundraising Regulator’s Code of 39 40 Policies, principles and standards Policies, principles and standards Policies, principles and standards RNLI PAY POLICY In our continuing commitment to performance, pay position in the range, GRANT-MAKING POLICY CERTIFICATIONS Trauma and Critical Care (ATACC) group and Around 95% of the people who work for the demonstrate equality and fairness in recruitment, market conditions, any relevant new Our policy is guided by the requirement that The RNLI works to the following standards the Faculty of Pre-Hospital Care at The Royal RNLI do so as unpaid volunteers, including pay, promotion and development, we disclosed qualifications or skills developed, and any grant payment is linked to a legal Deed of and certifications: College of Surgeons of Edinburgh. all the members of the Trustee Board, the the RNLI’s gender pay gap details ahead of the internal pay relativities. We operate Grant negotiated with the recipient. In addition, All our flood rescue courses are approved by chairman, and members of the Council. government’s April 2018 deadline. Reporting in a complementary recognition scheme we require completion of a satisfactory UK GAMBLING COMMISSION the UK Department for Environment, Food & The RNLI only employs paid staff where line with the UK Equality Act 2010 (Gender Pay using monetary value voucher rewards due diligence audit of the recipient’s senior REGULATION Rural Affairs (Defra). Our launch and recovery absolutely necessary to run what is a complex Gap Information) Regulations 2017, we reported for exceptional contributions outside an management, governance controls, financial The RNLI’s quarterly Lifeboat Lottery is training is accredited by the Off-highway Plant service in a hazardous environment. There are a gender pay gap of 0.7% based on an average individual’s normal job role. capability and capacity to deliver desired regulated by The Gambling Commission to and Equipment Research Centre (OPERC). a number of specific skills needed to keep such hourly rate for men and women – and published • Pay is reviewed consistently using the results. These checks include both the recipient ensure our gambling activities are safe, fair an organisation running as safely as possible the details on the government’s designated same approach for all staff, including the and any of their associates who are relevant and crime-free. We hold a non-remote and an PENSION QUALITY MARK PLUS and at peak efficiency. The RNLI has to compete website and RNLI.org on 1 February 2018. Executive Team and the chief executive. to the work being supported. This includes ancillary remote licence and strictly adhere to The RNLI’s Group Personal Pension Plan has met in the labour market and have an appropriate Insights from this report will enable us No individual performance bonuses checking government sanction lists. the Licence Conditions and Codes of Practice the standards required for the Pension Quality pay policy in place to ensure we can attract and to proactively progress a plan to address any are paid. The RNLI does, however, offer The payment of grants is linked to reaching from the Gambling Commission. Mark Plus from the Pensions and Lifetime retain the right people with the right skills to gender pay gaps that may have arisen from a cash reward programme for our seasonal agreed project milestones and is controlled We have put in place procedures and Savings Association. deliver our lifesaving work, offering a suitably recruitment, development, pay review or other fundraising employees. under the RNLI’s Standing Financial Instructions. protective measures to encourage responsible competitive level of reward and appropriate personnel practices. Gender pay gap data has • Annual pay budgets take into account Planned annual grants are sanctioned as part of gambling and to identify and help those with UK MUSEUM ACCREDITATION recognition for our staff. been, and will continue to be, reviewed with affordability, economic trends and external the annual budget approval process. These are gambling problems, and we strictly adhere to The RNLI Henry Blogg Museum and RNLI The pay policy of the RNLI is approved the Remuneration Committee and any actions market pay movement. recorded in a register and are subject to regular the Gambling Commission’s directive on social Grace Darling Museum continued to meet the by the Remuneration Committee. The to address gender pay gaps forms part of our review and control by the Executive Team under responsibility and problem gambling. See more standard for UK Museum Accreditation. Remuneration Committee may take external annual pay review cycle, as well as linking to the SENIOR EXECUTIVE PAY a delegated authority from the trustees. at RNLI.org/lottery. counsel as well as recommendations from the RNLI Inclusion and Diversity Strategy. DISCLOSURE Trustees also see an annual summary of the chief executive and the people director. The RNLI adheres to the UK government’s The RNLI acknowledges the recommendations year passed and the year planned. ACCREDITATION OF TRAINING The Annual Report of the Trustees of the RNLI In setting overall pay levels for our staff statutory national minimum and living made following the Report of the Inquiry into To maintain high standards of assurance, our AND ASSESSMENT STANDARDS was approved by the trustees of the RNLI on the RNLI takes account of pay practice in other wage rates. Charity Senior Executive Pay and Guidance for International Team are continually monitoring Our powerboating, motorcruising, VHF and 11 April 2018 and signed on their behalf by similarly sized charities and, where necessary, Trustees on Setting Remuneration by the UK best practice and any legislative changes that shore-based theory courses are accredited by private-sector organisations for specialist and KEY PRINCIPLES APPLICABLE TO National Council for Voluntary Organisations might impact the policy. A review with the the Royal Yachting Association (RYA). technical roles (for example in IT, finance, PAY AT ALL LEVELS IN THE RNLI (NCVO). The inquiry advocates greater Finance Team is planned for 2018. The Association of Marine Electronic and maritime operations, marine design and • In order to maintain a fair, rational pay transparency and the RNLI recognises and Radio Colleges (AMERC) accredits our Search manufacturing, and engineering roles). structure, the RNLI has a formal grading accepts those recommendations. As a result, and Rescue Radio Operator’s course (SARROC) We aim for a sustainable and consistent Pay structure and a single pay range for each the RNLI has provided greater clarity in this and our Long Range course (LRC). Strategy that meets the diverse requirements grade. The grades are based on jobs of report, with greater disclosure on the pay of Our STCW 95 Sea Survival course, Casualty of the RNLI. This includes a pay practice that common size, taking into account the the Executive Team, as well as continuing Care course and Approved Engine course (AEC) ensures individual pay decisions are supported breadth of responsibility, complexity, to disclose the chief executive’s pay in full are accredited by the Maritime and Coastguard by a rigorous performance management knowledge, skills and value to the RNLI. (see note 3). Agency (MCA). process that applies to all employees in • The RNLI encourages and rewards The RNLI is committed to openness and Our Casualty Care course is also accredited Stuart Popham the organisation. good performance. Individual pay is transparency on senior pay and will continue by the College of Paramedics, the Anaesthesia RNLI Chairman Relief Shannon class lifeboat Reg in the spray booth at our All-Weather Lifeboat Centre in Poole reviewed annually and takes into account to keep this under review. 41 42 Independent auditor’s report

TO THE TRUSTEES OF THE ROYAL NATIONAL BASIS FOR OPINION If we identify such material inconsistencies or apparent material AUDITOR’S RESPONSIBILITIES FOR THE AUDIT LIFEBOAT INSTITUTION We conducted our audit in accordance with International misstatements, we are required to determine whether there is OF THE FINANCIAL STATEMENTS We have audited the financial statements of the Royal National Standards on Auditing (UK) (ISAs (UK)) and applicable law. a material misstatement in the financial statements or We have been appointed as auditor under section 151 of the Independent Lifeboat Institution for the year ended 31 December 2017 which Our responsibilities under those standards are further described a material misstatement of the other information. If, based Charities Act 2011, and section 44(1)(c) of the Charities and comprise the Consolidated and Charity Statement of Financial in the Auditor’s responsibilities for the audit of the financial on the work we have performed, we conclude that there is Trustee Investment (Scotland) Act 2005 and report in Activities, the Consolidated and Charity Balance Sheets, the statements section of our report. We are independent of the a material misstatement of this other information, we are accordance with the Acts and relevant regulations made Consolidated Cash Flow Statement and notes to the financial group in accordance with the ethical requirements that are required to report that fact. or having effect thereunder. statements, including a summary of significant accounting relevant to our audit of the financial statements in the UK, We have nothing to report in this regard. Our objectives are to obtain reasonable assurance about auditor’s report policies. The financial reporting framework that has been applied including the FRC’s Ethical Standard, and we have fulfilled whether the financial statements as a whole are free from in their preparation is applicable law and United Kingdom our other ethical responsibilities in accordance with these MATTERS ON WHICH WE ARE REQUIRED TO material misstatement, whether due to fraud or error, and to Accounting Standards, including Financial Reporting Standard requirements. We believe that the audit evidence we have REPORT BY EXCEPTION issue an auditor’s report that includes our opinion. Reasonable 102 – The Financial Reporting Standard applicable in the UK obtained is sufficient and appropriate to provide a basis for We have nothing to report in respect of the following matters assurance is a high level of assurance, but is not a guarantee that and Republic of Ireland (United Kingdom Generally Accepted our opinion. in relation to which the Charities (Accounts and Reports) an audit conducted in accordance with ISAs (UK) will always Accounting Practice). Regulations 2008 require us to report to you if, in our opinion: detect a material misstatement when it exists. Misstatements This report is made solely to the charity’s trustees, as CONCLUSIONS RELATING • the information given in the financial statements is can arise from fraud or error and are considered material if, a body, in accordance with Part 4 of the Charities (Accounts TO GOING CONCERN inconsistent in any material respect with the trustees’ report; individually or in the aggregate, they could reasonably be and Reports) Regulations 2008 and Regulation 10 of the Charities We have nothing to report in respect of the following matters in or expected to influence the economic decisions of users taken Accounts (Scotland) Regulations 2006. Our audit work has been relation to which the ISAs (UK) require us to report to you where: • sufficient and proper accounting records have not been kept on the basis of these financial statements. undertaken so that we might state to the charity’s trustees those • the trustees’ use of the going concern basis of accounting in by the parent charity; or A further description of our responsibilities for the audit matters we are required to state to them in an auditor’s report the preparation of the financial statements is not appropriate; • the financial statements are not in agreement with the of the financial statements is located on the Financial Reporting and for no other purpose. To the fullest extent permitted by law, or accounting records and returns; or Council’s website at: www.frc.org.uk/auditorsresponsibilities. we do not accept or assume responsibility to anyone other than • the trustees have not disclosed in the financial statements • we have not received all the information and explanations This description forms part of our auditor’s report. the charity and the charity’s trustees as a body, for our audit any identified material uncertainties that may cast significant we require for our audit. work, for this report, or for the opinions we have formed. doubt about the group’s or the parent charity’s ability to continue to adopt the going concern basis of accounting for RESPONSIBILITIES OF TRUSTEES STATEMENTS a period of at least twelve months from the date when the As explained more fully in the trustees’ responsibilities statement In our opinion the financial statements: financial statements are authorised for issue. (set out on page 35), the trustees are responsible for the • give a true and fair view of the state of the group’s and of the preparation of the financial statements and for being satisfied parent charity’s affairs as at 31 December 2017 and of the OTHER INFORMATION that they give a true and fair view, and for such internal control group’s and charity’s incoming resources and application The trustees are responsible for the other information. The other as the trustees determine is necessary to enable the preparation of resources, for the year then ended; information comprises the information included in the annual of financial statements that are free from material misstatement, • have been properly prepared in accordance with United report, other than the financial statements and our auditor’s whether due to fraud or error. Crowe Clark Whitehill LLP Kingdom Generally Accepted Accounting Practice; and report thereon. Our opinion on the financial statements does not In preparing the financial statements, the trustees are Statutory Auditor • have been prepared in accordance with the requirements cover the other information and we do not express any form of responsible for assessing the group’s and the parent charity’s St Bride’s House of the Charities Act 2011 and the Charities and Trustee assurance conclusion thereon. ability to continue as a going concern, disclosing, as applicable, 10 Salisbury Square Investment (Scotland) Act 2005 and regulations 6 and 8 of In connection with our audit of the financial statements, our matters related to going concern and using the going concern London the Charities Accounts (Scotland) Regulations 2006. responsibility is to read the other information and, in doing so, basis of accounting unless the trustees either intend to liquidate EC4Y 8EH consider whether the other information is materially inconsistent the charity or to cease operations, or have no realistic alternative 11 April 2018 with the financial statements or our knowledge obtained in the but to do so. audit or otherwise appears to be materially misstated. Crowe Clark Whitehill LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 43 44 Financial statements Financial statements

RNLI CONSOLIDATED STATEMENT Note Unrestricted funds Restricted Endowed Total Total RNLI CONSOLIDATED BALANCE SHEET Note 2017 2016 funds funds 2017 2016 OF FINANCIAL ACTIVITIES as at 31 December 2017 £M £M £M £M for the year ended 31 December 2017 General Designated Fixed asset funds funds funds Assets employed £M £M £M £M £M £M £M Fixed assets 11.3 Income and endowments from: Intangible assets 6b 14.0 Legacies 99.4 – – 35.7 – 135.1 130.5 Tangible assets 6a 440.7 434.5 Donations 39.7 – – 9.9 – 49.6 51.5 454.7 445.8 Trading activities 10.7 – – – – 10.7 8.9 Investments 7 277.9 271.3 Investments 7c 2.1 – – 0.1 – 2.2 2.3 Current assets Charitable activities 3.7 – – – – 3.7 3.6 Stocks 8 17.7 16.5 Other income 1.1 – – – – 1.1 1.0 Debtors 9 79.4 77.1 Total income and endowments 156.7 – – 45.7 – 202.4 197.8 Bank and cash 6.9 1.9 Expenditure on: 104.0 95.5 Legacies and donations (26.8) – (0.4) – – (27.2) (31.2) Creditors – amounts falling due within 1 year 10 (13.5) (12.9) Trading activities (5.1) – (0.1) – – (5.2) (5.5) Investment management (0.2) – – (0.1) – (0.3) (0.4) Net current assets 90.5 82.6 Raising funds (32.1) – (0.5) (0.1) – (32.7) (37.1) Creditors Lifeboat service (27.8) – (2.0) (10.7) – (40.5) (37.3) Amounts falling due after more than 1 year 10 (6.3) (6.6) Lifeboats, property and equipment (37.1) – (24.9) (12.1) – (74.1) (75.2) Defined benefit pension liability 10 (50.5) (80.5) Lifeboat rescue (64.9) – (26.9) (22.8) – (114.6) (112.5) Net assets 766.3 712.6 Lifeguard rescue (16.8) – (2.0) (1.2) – (20.0) (19.9) Funds International – (2.4) – (0.5) – (2.9) (2.1) Endowed funds: Permanent 11.7 11.3 12b Safety, education and awareness (11.7) – (0.1) – – (11.8) (11.6) Expendable 4.7 4.6 Charitable activities (93.4) (2.4) (29.0) (24.5) – (149.3) (146.1) 16.4 15.9 Total expenditure 5 (125.5) (2.4) (29.5) (24.6) – (182.0) (183.2) Restricted funds 12c 134.8 120.1 Net gains on investments 7b 2.5 2.4 – 5.1 0.5 10.5 20.6 Unrestricted funds Net income/(expenditure) 33.7 – (29.5) 26.2 0.5 30.9 35.2 Stuart Popham Paul Boissier Fixed asset funds 454.7 445.8 Transfers between funds 1h (42.5) 15.6 38.4 (11.5) – – – Chairman Chief Executive Actuarial gains/(losses) Designated funds 12d 79.3 63.7 22.8 – – – – 22.8 (67.9) on pension schemes General funds: Free reserves 131.6 147.6 Net movement in funds 14.0 15.6 8.9 14.7 0.5 53.7 (32.7) Notes 1 to 16 form part of these accounts. The accounts Pension reserve (50.5) (80.5) Reconciliation of funds: of the RNLI and the consolidated accounts were approved 81.1 67.1 Funds at 1 January 67.1 63.7 445.8 120.1 15.9 712.6 745.3 and authorised for issue by the trustees on 11 April 2018 Movement in funds 14.0 15.6 8.9 14.7 0.5 53.7 (32.7) and signed on their behalf. Total funds 766.3 712.6 Notes 1 to 16 form part of these accounts. Funds at 31 December 81.1 79.3 454.7 134.8 16.4 766.3 712.6 45 46 Financial statements Financial statements

RNLI STATEMENT OF FINANCIAL ACTIVITIES† RNLI CONSOLIDATED CASH 2017 2016 Note Unrestricted funds Restricted Endowed Total Total for the year ended 31 December 2017 FLOW STATEMENT £M £M General Designated Fixed asset funds funds 2017 2016 for the year ended 31 December 2017 Cash flow from operating activities: funds funds funds £M £M £M £M £M £M £M Net cash provided by operating activities (see note below) 37.3 18.6 Cash flows from investing activities: Income and endowments from: Investment income 2.2 2.3 Legacies 99.4 – – 35.7 – 135.1 130.5 Proceeds from the sale of fixed assets 0.9 4.0 Donations 39.7 – – 9.9 – 49.6 51.5 Purchase of fixed assets (39.3) (49.5) Donations from trading companies – – – 5.5 – 5.5 6.0 Purchase of investments (29.5) (60.5) Investments 7c 2.1 – – 0.1 – 2.2 2.3 Proceeds from sale of investments 33.4 83.4 Charitable activities 3.7 – – – – 3.7 3.6 Net cash used in investing activities (32.3) (20.3) Other income 1.1 – – – – 1.1 1.0 Change in cash and cash equivalents in the reporting period 5.0 (1.7) Total income and endowments 146.0 – – 51.2 – 197.2 194.9 Reconciliation of cash flow: Expenditure on: Cash and cash equivalents at the beginning of the reporting period 1.9 3.6 Legacies and donations (26.8) – (0.4) – – (27.2) (31.2) Change in cash and cash equivalents in the reporting period 5.0 (1.7) Investment management (0.2) – – (0.1) – (0.3) (0.4) Cash and cash equivalents at the end of the reporting period 6.9 1.9 Raising funds (27.0) – (0.4) (0.1) – (27.5) (31.6) Lifeboat service (27.8) – (2.0) (10.7) – (40.5) (37.3) Lifeboats, property and equipment (37.1) – (24.9) (12.1) – (74.1) (76.9) Lifeboat rescue (64.9) – (26.9) (22.8) – (114.6) (114.2) Lifeguard rescue (16.8) – (2.0) (1.2) – (20.0) (19.9) International – (2.4) – (0.5) – (2.9) (2.1)

2017 2016 Safety, education and awareness (11.7) – (0.1) – – (11.8) (11.6) £M £M Charitable activities (93.4) (2.4) (29.0) (24.5) – (149.3) (147.8) Note to the consolidated cash flow statement Total expenditure (120.4) (2.4) (29.4) (24.6) – (176.8) (179.4) Reconciliation of net income to net cash flow from operating activities Net gains on investments 7b 2.5 2.4 – 5.1 0.5 10.5 20.6 Net income for the period (as per the SoFA) 30.9 35.2 Net income/(expenditure) 28.1 – (29.4) 31.7 0.5 30.9 36.1 Depreciation and amortisation charges 29.5 27.4 Transfers between funds 1h (37.3) 15.6 38.7 (17.0) – – – Gains on investments (10.5) (20.6) Actuarial gains/(losses) 22.8 – – – – 22.8 (67.9) Investment income (2.2) (2.3) on pension schemes Profit on the sale of fixed assets – (0.6) Net movement in funds 13.6 15.6 9.3 14.7 0.5 53.7 (31.8) Notes 1 to 16 form part of these accounts. Increase in stock (1.2) (0.1) Reconciliation of funds: Increase in debtors (2.3) (11.9) Funds at 1 January 69.4 63.7 443.5 120.1 15.9 712.6 744.4 †The RNLI statement of financial activities shows the Decrease in creditors (6.9) (8.5) financial performance for the year of the charity excluding Movement in funds 13.6 15.6 9.3 14.7 0.5 53.7 (31.8) Notes 1 to 16 form part of these accounts. Net cash provided by operating activities 37.3 18.6 its subsidiaries. Funds at 31 December 83.0 79.3 452.8 134.8 16.4 766.3 712.6

47 48 Financial statements Financial statements

† RNLI BALANCE SHEET Note 2017 2016 as at 31 December 2017 £M £M £M £M Assets employed Fixed assets Intangible assets 14.0 11.3 Tangible assets 438.8 432.2 452.8 443.5 Investments 280.5 272.5 Current assets Stocks 8 16.5 15.2 Debtors 9 79.4 78.7 Bank and cash 6.9 1.9 102.8 95.8 Creditors – amounts falling due within 1 year 10 (13.0) (12.1) Net current assets 89.8 83.7 Creditors Amounts falling due after more than 1 year 10 (6.3) (6.6) Defined benefit pension liability 10 (50.5) (80.5) Net assets 766.3 712.6 Funds Endowed funds: Permanent 11.7 11.3 12b Stuart Popham Paul Boissier Expendable 4.7 4.6 Chairman Chief Executive 16.4 15.9 Restricted funds 12c 134.8 120.1 Unrestricted funds Notes 1 to 16 form part of these accounts. The accounts of Fixed asset funds 452.8 443.5 the RNLI and the consolidated accounts were approved and Designated funds 12d 79.3 63.7 authorised for issue by the trustees on 11 April 2018 and General funds: Free reserves 133.5 149.9 signed on their behalf. Pension reserve (50.5) (80.5) 83.0 69.4 †The RNLI balance sheet shows the financial position of the charity excluding its subsidiaries. Total funds 766.3 712.6

Dungeness volunteers take part in a launch and recovery exercise of their Shannon class lifeboat The Morrell

49 50 Notes to the accounts Notes to the accounts

b) Significant judgements and estimates Assets are valued at their value in use to the charity, as Legacy freehold and leasehold property is capitalised under Fixed asset funds represent the assets of the RNLI, the vast • Pension reserve, which represents the FRS102 accounting RNLI NOTES TO THE The key sources of uncertainty in our estimations that have prescribed by the SORP, rather than the market value of the tangible fixed assets at market value. When sold, the profit or majority of which are the lifeboats, launching equipment and deficit for the defined benefit pension scheme as at the a significant effect on the amounts recognised in the financial asset. On that basis, impairment is recognised when the asset is loss on disposal is recognised in the SoFA as legacy income rather operational properties, such as lifeboat stations and lifeguard year end. The FRS102 basis is a prescribed accounting ACCOUNTS statements are described in the accounting policies and are no longer used for its original charitable purpose. than profit or loss on disposal of fixed assets. units. Without them the RNLI could not operate. They are basis that requires the discount rate to be the rate on high summarised below: shown separately to other unrestricted funds due to the size quality corporate bonds with a duration equivalent to that for the year ended 31 December 2017 • residuary legacies – the charity recognises residuary legacies e) Pension schemes g) Expenditure and importance of these assets to the RNLI. of the liabilities. Each year, the scheme actuary assesses the once probate has been granted, which therefore requires an The RNLI operates a defined benefit pension scheme covering its All expenditure is accounted for on an accruals basis and has financial position of the scheme, allowing for the returns 1. RNLI STRUCTURE AND estimation of the amount receivable employees in the UK and the Republic of Ireland. The scheme was been classified under headings that aggregate all costs related Designated funds are set aside at the discretion of the trustees expected to be generated by the assets planned to be held ACCOUNTING POLICIES • pension liabilities – the charity recognises its liability to its closed to new entrants from 1 January 2007 and closed to future to the category. Support costs representing expenditure on and comprise: by the scheme in the future. These assets would not typically The RNLI was founded in 1824 and was incorporated under defined benefit pension scheme, which involves a number of benefit accrual on 30 September 2012, although benefits for governance, estates and administration, financial management, • Planned capital expenditure, which sets aside funds to consist of 100% in corporate bonds. Further details are shown a Royal Charter in 1860, with Supplemental Charters granted in estimations as disclosed in note 11. active members accrued up to 30 September 2012 continue to be human resources administration and information systems and assure suppliers that the RNLI can meet its planned capital in note 11. 1932, 1986, 2002 and 2011. The RNLI is registered as a charity subject to any increases in pensionable pay. infrastructure have been allocated to expenditure, excluding expenditure. This is expenditure to which the RNLI is in England and Wales (209603), Scotland (SC037736) and the c) Basis of consolidation A defined contribution pension scheme was established for merchandising and investment management, on the basis of cost. committed over the next 3 years in order to maintain the Transfers between funds represent the application of restricted Republic of Ireland (20003326). The address of the registered All subsidiary companies have been consolidated on new staff joining from 1 January 2007 and this was also offered operation of the lifeboat and lifeguard service, principally and designated funds to capital projects and transfers to office is West Quay Road, Poole, Dorset, BH15 1HZ. a line-by-line basis. as an alternative to members of the defined benefit pension h) Fund accounting lifeboat stations and launching equipment now that all maintain the committed value of such funds. This also includes scheme on its closure. The defined benefit scheme assets are The RNLI’s funds fall into the following categories: lifeboat build is done in-house. The total amount set the donations from subsidiary companies that have been made a) Basis of accounting d) Depreciation, amortisation and impairment held in a separate trustee-administered fund. The cost charged aside excludes projects to be funded by restricted and on a restricted basis. The accounts (financial statements) have been prepared in Tangible fixed assets costing more than £10,000 are in the Statement of Financial Activities (SoFA) represents Permanent endowments, which are capital sums that are endowment funds. accordance with the Accounting and Reporting by Charities: capitalised and included at cost. current service costs and gains and losses on settlements and donated under the restriction that they are invested and that • International, which sets aside funds from investment i) Operating leases Statement of Recommended Practice (SORP), Financial Reporting Fixed assets are depreciated or amortised over their curtailments calculated in accordance with Accounting Standard only the income arising is available for expenditure in accordance gains for international work to reassure RNLI supporters Rentals applicable to operating leases are charged to Standard 102 The Financial Reporting Standard applicable in the UK current anticipated lives, which are assessed as follows: FRS102. Further details are shown in note 11. Contributions in with the donors’ directions. These capital sums can only be that their donations are being used as they expect. It covers the SoFA over the period in which the cost is incurred on and Republic of Ireland (FRS102) and the Charities Act 2011. respect of the defined contribution scheme are recognised as spent in exceptional circumstances with the agreement of any international costs that are not already covered by a straight-line basis. The accounts (financial statements) have been prepared to expenditure as they become payable. the Charity Commission. restricted income. Goodwill and Straight line over the give a true and fair view and have departed from the Charities Intellectual property estimated useful life j) Investments (Accounts and Reports) Regulations 2008 only to the extent f) Income Expendable endowments, which are capital sums that are All of the above are committed funds. Investments for which there is a quoted market value Assets under construction No depreciation is charged required to provide a true and fair view. This departure has All income is included in the SoFA when the charity is legally donated under the restriction that they are invested and that are valued at the bid-price ruling at the balance sheet date. on assets in the course only the income arising is available for expenditure in accordance involved following Accounting and Reporting by Charities, of construction entitled to the income and the amount can be quantified with General funds are sums that are freely available for general use. Other investments are valued at their realisable market value. preparing their accounts in accordance with The Financial reasonable accuracy. Pecuniary legacies are recognised as with the donors’ directions. These capital sums may be spent at They comprise: Investment gains and losses arising during the year are included Reporting Standard applicable in the UK and Republic of Ireland Freehold lifeboat stations Straight line over 50 years receivable once probate has been granted and notification has the discretion of the trustees, where necessary, and in accordance Free reserves, which are retained to enable the trustees in the SoFA. and shoreworks • (FRS102) issued on 16 July 2014 rather than the Accounting and been received. Residuary legacies are recognised as receivable with the donors’ directions. to provide assurance to those at sea, the public and the Reporting by Charities: Statement of Recommended Practice Other freehold/ Straight line over 50 years/ once probate has been granted where sufficient information has governments of the UK and Republic of Ireland that k) Stocks effective from 1 April 2005, which has since been withdrawn. leasehold buildings period of lease been received, on an estimated basis as follows: cash elements Restricted funds are only available for expenditure in the RNLI will be able to sustain its commitment to provide Stocks are valued at cost or written-down value. Stocks are The RNLI meets the definition of a public benefit entity under Lifeboats 13–25% reducing balance are recognised at monetary value, with property and other accordance with the donors’ directions. There are over 700 of the lifeboat and lifeguard service. The free reserves are set at reviewed on a line-item basis at least annually and provision FRS102. Assets and liabilities are initially recognised at historical per annum assets, including investments, valued at probate or estimated these funds, which are restricted to expenditure on particular a level to withstand any short-term financial risks, the main is made against cost to reduce carrying value to estimated cost or transaction value unless otherwise stated in the relevant Launching equipment 13% reducing balance per annum/ market value. Values are reviewed and adjusted up to the point items of equipment and on particular types of service such ones being in the investment markets or in key sources of realisable value. accounting policy note. straight line over 10 years of accounts approval. On receipt, and where material, donations as crew training or at particular stations. This will include income, such as legacies. If free reserves fall outside the range There are no material uncertainties about the charity’s Office furniture Straight line over 5–10 years in kind are recognised on the basis of the value of the gift to the any restricted legacy value accrued on an estimated basis, of 6–18 months’ charitable expenditure cover, the trustees l) Presentation currency ability to continue as a going concern. and depot plant charity, which is the amount the charity would have been willing in accordance with the policy on income detailed in this note. will review the business plan and make changes, as they The functional currency of the RNLI and its subsidiaries is Computer hardware Straight line over 4–10 years to pay to obtain services or facilities of equivalent economic consider appropriate. This will include any unrestricted legacy considered to be in pounds sterling because that is the currency and software benefit on the open market; a corresponding amount is then values accrued. of the primary economic environment in which the charity Motor vehicles Straight line over 4 years recognised in expenditure in the period of receipt. operates. The consolidated financial statements are also presented in pounds sterling. 51 52 Notes to the accounts Notes to the accounts

m) Exchange rate gains and losses 2. SUBSIDIARY COMPANIES SUBSIDIARY COMPANY FINANCIAL INFORMATION Transactions in foreign currencies are recorded using the rate of The RNLI has four wholly owned subsidiaries, RNLI (Trading) exchange ruling at the date of the transaction. Monetary assets Limited, SAR Composites Limited, RNLI College Limited RNLI (Sales) Limited RNLI College Limited Company number 2202240 Company number 7705470 are translated at the rate of exchange ruling at the balance sheet and RNLI (Sales) Limited, all of which are registered in Continuing operations date. Gains and losses on exchange are included in the SoFA. England and Wales. 2017 2016 2017 2016 RNLI (Trading) Limited’s principal activity was to £M £M £M £M n) Cash at bank and short-term deposits supply the RNLI with lifeboats, launching equipment, Merchandising and other trading income 8.8 7.4 1.9 1.5 Cash at bank and short-term deposits include cash and short- lifeboat stations, lifeguard units and associated operational Internal supplies to the RNLI – – 7.0 6.7 term highly liquid investments with a short maturity of 3 months equipment together with their subsequent maintenance. Cost of sales (2.7) (3.5) (0.9) (0.8) or less from the date of acquisition or opening of the deposit As part of an exercise to streamline the RNLI’s corporate or similar account. All cash and short-term deposits are basic structure the net assets and activities of RNLI (Trading) Gross profit 6.1 3.9 8.0 7.4 instruments and are measured at amortised cost. Limited were transferred at fair value to the charity under the Operating costs (2.0) (1.2) (6.6) (6.7) terms of an Asset Purchase Agreement dated 30 June 2016. Net profit 4.1 2.7 1.4 0.7 o) Financial instruments At the same time the hull manufacturing operations of SAR Amount of Gift Aid to the RNLI (4.1) (2.7) (1.4) (0.7) The charity only has financial assets and financial liabilities of Composites Limited were transferred to the charity. Both Retained in subsidiary – – – – a kind that qualify as basic financial instruments. Basic financial RNLI (Trading) Limited and SAR Composites Limited were instruments are initially recognised at transaction value and inactive throughout 2017. An application to strike off SAR Fixed assets 0.5 0.6 1.4 1.7 subsequently measured at their settlement value. Composites Limited has been made in 2018. The intention Current assets 1.5 1.5 0.1 0.2 is to strike off RNLI (Trading) Limited. Current liabilities (0.4) (0.2) (0.9) (0.7) The activities of RNLI College Limited relate directly to Amounts owed (to)/from RNLI group (0.1) (1.8) 0.4 (0.2) the charitable activities of the RNLI and comprise the training Net assets 1.5 0.1 1.0 1.0 of lifeboat crew and lifeguards, although there are some external sales of excess facility capacity. RNLI (Sales) Limited is used for non-charitable fundraising RNLI (Trading) Limited SAR Composites Limited Company number 1073377 Company number 6774388 activities: selling gifts and souvenirs through the RNLI’s Transfer of activities (activities network of station branches, fundraising branches and guilds transferred to the RNLI) 2017 2016 2017 2016 and running the Lifeboat Lottery. On 11 December 2017 the £M £M £M £M share capital of RNLI (Sales) Limited was increased to £1.5M. The RNLI charges its subsidiaries for the use of any shared Internal supplies to the RNLI – 43.6 – 2.2 resources. In 2017 a total of £0.9M (2016: £7.2M) was charged Lifeboats, property and equipment – (40.1) – (1.5) to the subsidiaries on a cost basis. Gross profit – 3.5 – 0.7 The RNLI balance sheet, excluding its subsidiary Operating costs – (1.9) – (0.4) companies, has net assets substantially the same as the Net profit/(loss) – 1.6 – 0.3 consolidated balance sheet. For this reason the notes to the accounts show only the consolidated position, except where Amount of Gift Aid to the RNLI – (2.6) – – there is a material difference. Retained in subsidiary – – – – Fixed assets – – – – Current assets – – – – Current liabilities – – – –

RNLI lifeguards teach schoolchildren how to Amounts owed to RNLI group – – – – safely hit the surf at Tolcarne beach, Newquay Net assets – – – – 53 54 Notes to the accounts Notes to the accounts

3. STAFF COSTS Total staff costs increased by £4.9M (2016: £6.1M) across Included in this are RNLI directors, who received emoluments The average monthly headcount was 2,440 (2016: 2,366). The average number of employees excluding seasonal The RNLI relies heavily on the work of volunteers to launch all areas of which £1.8M was due to the annual pay rise. in excess of £60,000 as follows: The total average number of employees, calculated on a full-time staff, calculated on a full-time equivalent basis, analysed and crew the lifeboats, support our lifeguard service and operate The majority of this increase is due to having a full year of equivalent (FTE) basis, analysed by function was: by function was: the large network of station branches, fundraising branches and salary and associated costs in 2017 for staff employed part 2017 2016 2017 2016 2017 2016 groups. We are founded on these volunteers who account for way through 2016. Number Number Number Number Number Number 95% of the RNLI’s people and include more than 4,950 volunteer There have been some small increases in full-time equivalent crew members and over 3,500 volunteer shore crew and lifeboat staff in areas such as production where salary costs have £60,000–£69,999 – 1 Lifeboat service 337 309 Lifeboat service 337 309 station management. The majority of our volunteers, in number, increased as we increase production of our Shannon class £90,000–£99,999 2 4 Lifeboats, property and equipment 582 576 Lifeboats, property and equipment 582 576 however, are the fundraisers who raise money and help in our lifeboats. We have also continued to invest in our teams that £100,000–£109,999 6 3 Lifeguard rescue 484 524 Lifeguard rescue 36 56 shops, museums and offices. support our continuous improvement, change and procurement £150,000–£159,999 – 1 Staff costs, both to support these volunteers and to save initiatives. This activity has allowed us to achieve significant £160,000–£169,999 1 – International 18 14 International 18 14 lives in areas such as lifeguards, are as follows: annual savings. Safety, education and awareness 81 97 Safety, education and awareness 81 97 The following number of employees received emoluments Total 9 9 in excess of £60,000: Support 259 238 Support 259 238 Legacies and donations 329 328 Legacies and donations 301 301 2017 2016 2017 2016 Key management personnel (including RNLI directors £M £M Number Number and the chief executive) received total aggregate employee Trading activities 17 17 Trading activities 17 17 Wages and salaries 64.2 60.4 £60,000–£69,999 33 31 benefits (including employers NI contributions) of £1,317,789 Total 2,107 2,103 Total 1,631 1,608 Social security costs 6.2 5.8 £70,000–£79,999 8 10 (2016: £1,130,324). Aggregate employee benefits comprise salaries, pension costs and company cars. The chief executive Pension costs 9.8 9.1 £80,000–£89,999 3 1 received aggregate employee benefits (including employers NI The RNLI employs seasonal staff in the form of lifeguards It is worth noting that in 2017 a new structure was introduced £90,000–£99,999 3 5 Total 80.2 75.3 contributions) of £188,871 (2016: £182,268). and face-to-face fundraisers. Lifeguards are recruited and within our Lifesaving stream. This has resulted in some transfers Severance pay 0.2 0.6 £100,000–£109,999 6 3 54 (2016: 51) employees who received emoluments in excess deployed on beaches when required and have been included across departments between the Lifeboat service, Lifeguard £150,000–£159,999 – 1 of £60,000 are members of the defined contribution scheme and above in Lifeguard rescue as FTE of 448 (2016: 468). The peak rescue and Lifeboats, property and equipment; the comparative £160,000–£169,999 1 – received employer contributions of £559,017 (2016: £529,277). number of lifeguards employed during the summer months was period has been updated to allow for comparison. 1,639 (2016: 1,507). Total 54 51 Face-to-face fundraisers are also recruited and deployed on beaches during the summer months and have been included in legacies and donations as FTE of 28 (2016: 27). 4. TRUSTEE, COUNCIL AND COMMITTEE COSTS No trustees, or any persons connected with them, received remuneration. Travelling expenses are reimbursed, if claimed, to trustees and members of the Standing and Advisory committees and the Council. In total, £12,801 (2016: £10,391) was reimbursed to 6 trustees, 15 Council members and members of Advisory committees and the Audit and Risk Committee (2016: 7 trustees, 20 Council members and members of Advisory committees and the Audit and Risk Committee). Total donations of £7,260 were Commercial fishing is one of the most received in 2017 from the trustees (2016: £18,128). hazardous industries. See page 13 to find out what the RNLI is doing to help people like this Troon trawlerman 55 56 Notes to the accounts Notes to the accounts

5. TOTAL RESOURCES EXPENDED 6. FIXED ASSETS a) Tangible assets b) Intangible assets

Staff costs Depreciation/ Other direct Other allocated Total Total Assets under Lifeboats Lifeboat Launch and Depots, Computer Total Assets under Computer Total amortisation costs costs 2017 2016 construction stations and recovery offices and equipment, construction software £M £M £M £M £M £M shoreworks equipment training plant and £M £M £M facilities vehicles Legacies and donations 13.3 0.2 9.8 3.9 27.2 31.2 Cost £M £M £M £M £M £M £M Trading activities 0.6 0.1 4.5 – 5.2 5.5 At 1 January 2017 11.3 – 11.3 Investment management – – 0.3 – 0.3 0.4 Cost Additions 2.9 0.9 3.8 Lifeboat service 14.2 1.6 18.7 6.0 40.5 37.3 At 1 January 2017 41.5 301.7 257.4 41.6 99.4 60.8 802.4 Lifeboats, property and equipment 23.6 24.1 15.6 10.8 74.1 75.2 Additions 32.2 0.4 0.4 0.5 – 2.0 35.5 Transfers (10.0) 10.0 – Lifeguard rescue 12.2 1.8 3.1 2.9 20.0 19.9 Transfers (50.4) 17.9 29.6 3.2 (1.7) 1.4 – At 31 December 2017 4.2 10.9 15.1 Disposals (0.3) (1.6) – (0.4) (0.4) (0.7) (3.4) International 0.9 – 1.6 0.4 2.9 2.1 Amortisation Safety, education and awareness 3.4 0.1 6.6 1.7 11.8 11.6 At 31 December 2017 23.0 318.4 287.4 44.9 97.3 63.5 834.5 At 1 January 2017 – – – Support 12.2 1.6 11.9 (25.7) – – Depreciation Charge for the year – 1.1 1.1 Total 80.4 29.5 72.1 – 182.0 183.2 At 1 January 2017 – 211.0 70.6 21.9 18.8 45.6 367.9 Charge for the year – 13.4 7.3 2.7 1.2 3.8 28.4 At 31 December 2017 – 1.1 1.1 Support costs are allocated based on cost as follows: Disposals – (1.6) – (0.4) – (0.5) (2.5) Net book amount At 31 December 2017 – 222.8 77.9 24.2 20.0 48.9 393.8 At 31 December 2017 4.2 9.8 14.0 Net book amount Governance Estates and Finance Human Information Total Total At 31 December 2016 11.3 – 11.3 general resources technology 2017 2016 At 31 December 2017 23.0 95.6 209.5 20.7 77.3 14.6 440.7 administration At 31 December 2016 41.5 90.7 186.8 19.7 80.6 15.2 434.5 £M £M £M £M £M £M £M Assets under construction comprise software development costs. Legacies and donations 0.1 0.8 0.5 0.9 1.6 3.9 3.9 Lifeboat service 0.1 1.2 0.8 1.5 2.4 6.0 4.7 The net book amounts include the following property: Lifeboats, property and equipment 0.2 2.1 1.3 2.8 4.4 10.8 9.5 c) Subsidiary company assets The consolidated schedule of fixed assets includes assets owned Lifeguard rescue 0.1 0.6 0.4 0.7 1.1 2.9 2.5 Freehold Leasehold Total £M £M £M by subsidiary companies with the following net book amounts: International – 0.1 – 0.1 0.2 0.4 0.3 Lifeboat stations and shoreworks 65.9 143.6 209.5 Safety, education and awareness – 0.3 0.2 0.5 0.7 1.7 1.5 2017 2016 Depots, offices and training facilities 68.9 8.4 77.3 £M £M Total 0.5 5.1 3.2 6.5 10.4 25.7 22.4 At 31 December 2017 134.8 152.0 286.8 Assets under construction – 0.1 Lifeboats 0.3 0.3 Governance includes audit costs (both internal and Computer equipment, plant and vehicles 1.6 1.8 An RNLI volunteer engages with the external), the AGM and committee costs. public at a high-profile event. Audit fees of £79,460 (2016: £69,960) and tax fees of Depots, offices and training facilities – 0.1 Read more about our people on £8,125 (2016: £15,955) were payable to the external auditor. Total 1.9 2.3 pages 23–26

57 58 Notes to the accounts Notes to the accounts

7. INVESTMENTS 8. STOCKS 10. CREDITORS

General/ Restricted Endowed Total Total Consolidated RNLI Consolidated RNLI Designated funds funds funds 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 £M £M £M £M £M £M £M £M £M £M £M £M £M a) Investment assets Operational stock 16.5 15.2 16.5 15.2 Amounts falling due within 1 year Equities 54.8 – – 54.8 52.2 Gifts and souvenirs 1.2 1.3 – – Trade creditors 6.2 5.8 5.9 5.6 Absolute return funds 3.4 113.4 7.7 124.5 118.8 Total 17.7 16.5 16.5 15.2 Inter-company creditor – – 0.4 – Fixed interest 70.3 – – 70.3 71.0 PAYE taxes and social security 1.6 1.5 1.5 1.4 Property unit trusts 15.4 – 8.4 23.8 22.7 Pension creditor 0.9 0.8 0.8 0.8 Deposits and cash 4.2 – 0.3 4.5 6.6 Dependants’ pensions liability 0.3 0.3 0.3 0.3 Market value at 31 December 2017 148.1 113.4 16.4 277.9 271.3 9. DEBTORS Accruals 4.5 4.5 4.1 4.0 b) Analysis of movement Total 13.5 12.9 13.0 12.1 Market value at 1 January 2017 152.3 103.1 15.9 271.3 273.6 Consolidated RNLI Amounts falling due after more than 1 year Additions 3.7 25.8 – 29.5 60.5 2017 2016 2017 2016 Dependants’ pensions liability 6.3 6.6 6.3 6.6 Disposals (12.8) (20.6) – (33.4) (83.4) £M £M £M £M Defined benefit pension liability 50.5 80.5 50.5 80.5 Gains on investments 4.9 5.1 0.5 10.5 20.6 Legacies receivable 75.1 71.6 75.1 71.6 Inter-company Total 56.8 87.1 56.8 87.1 Market value at 31 December 2017 148.1 113.4 16.4 277.9 271.3 – – 0.1 2.0 debtors Original cost 92.7 105.6 15.4 213.7 209.5 Trade and other All creditors are basic financial instruments measured c) Investment income 0.3 0.3 0.2 0.2 debtors at amortised cost, with the exception of PAYE taxes and Equities 0.8 – – 0.8 0.9 social security, pensions liability and pension creditor. VAT and Gift Aid 1.8 3.8 2.1 3.6 Absolute return funds – 0.1 – 0.1 0.1 recoverable Fixed interest 0.1 – – 0.1 0.1 Other debtors 0.1 0.1 0.1 0.1 Property unit trusts 1.2 – – 1.2 1.1 Prepayments and 2.1 1.3 1.8 1.2 Deposits and cash – – – – 0.1 accrued income Total 2.1 0.1 – 2.2 2.3 Total 79.4 77.1 79.4 78.7

The RNLI holds 100% of the share capital of RNLI (Sales) A proportion of legacies receivable may be received Limited, amounting to £1.5M (2016: £137,734), and RNLI College after more than 1 year, but this figure cannot be Limited, amounting to £1,044,628 (2016: £1,044,628). determined with any accuracy due to the inherent The RNLI held no derivative instruments as at 31 December uncertainty in the timing of legacy income receipt. 2017 (2016: none). Several of the pooled investment funds held All debtors are basic financial instruments by the RNLI use derivative products within their portfolios to measured at amortised cost, with the exception of reduce market risk in line with their investment strategies. VAT of £1.4M (2016: £3.4M) and prepayments In 2017 our face-to-face fundraisers worked All investments are basic financial instruments and are of £0.5M (2016: £0.0M). alongside lifeguards, sharing safety messages measured at fair values, except for investment in subsidiaries, with more than 109,000 beach goers. See page 24 to find out more which are held at cost. 59 60 Notes to the accounts Notes to the accounts

31/12/2017 31/12/2016 31/12/2015 11. PENSION SCHEMES of the scheme for the formal actuarial valuation, allowing for The assets in the pension scheme and the expected rates of The RNLI provides a number of pension schemes for an expected rate of return on all assets at the discount rate, return at 31 December 2017 and the corresponding amounts and Expected rate Market value Expected rate Market value Expected rate Market value its employees: based on bond yields. These assets would not typically consist assumptions at 31 December 2016 and 31 December 2015 were: of return of assets of return of assets of return of assets % pa £M % pa £M % pa £M • The RNLI 1983 Contributory Pension Scheme, a defined of 100% in corporate bonds. benefit scheme, was closed to new entrants from The RNLI paid deficit reduction contributions of £9.4M Equities 89.4 106.6 95.1 1 January 2007 and closed to future benefit accrual on in 2017 (2016: £9.4M) and a further £9.4M is expected to Fixed interest 21.8 21.8 21.2 30 September 2012, although benefits for active members be contributed to the defined benefit scheme in the 2018 Private credit 17.2 – – accrued up to 30 September 2012 continue to be subject financial year. Absolute return funds 70.7 66.7 66.3 to any increases in pensionable pay. The main financial assumptions used as at 31 December 2017 • The RNLI UK Group Personal Pension Plan is the current and the corresponding assumptions at 31 December 2016 and Cash and net current assets 2.3 20.7 20.0 arrangement for UK employees who joined the RNLI from 31 December 2015 were: Liability-driven investment 128.5 96.3 74.9 1 January 2007. It is a contract-based defined contribution Total 2.4 329.9 2.6 312.1 3.8 277.5 scheme. Member retirement benefits are linked to the investment performance of contributions made. 31/12/2017 31/12/2016 31/12/2015 The RNLI RoI Group Fusion Pension Plan is the current % pa % pa % pa • a)  The following amounts were measured in accordance with the arrangement for Republic of Ireland employees who joined Discount rate† 2.4 2.6 3.8 requirements of FRS102: the RNLI from 1 January 2012. It is a contract-based defined Rate of increase in salaries 4.1 4.1 3.9 contribution scheme. Member retirement benefits are linked Rate of increase in pensions in payment‡: 2017 2016 to the investment performance of contributions made. Post-1988 GMP increases (CPI capped at 3%) CPI-0.4% CPI-0.4% CPI-0.4% Pension Dependants’ Total Pension Dependants’ Total In 2017, the RNLI paid contributions of £9.8M (2016: £9.1M) in Pre-1997 increases (RPI capped at 4%) RPI-0.5% RPI-0.5% RPI-0.5% scheme pensions scheme pensions £M £M £M £M £M £M respect of members of the defined contribution pension schemes. 1997–2005 increases (RPI capped at 4%, CPI 5%) RPI-0.4% RPI-0.4% RPI-0.4% Details of the defined benefit scheme, produced in 2005–2007 increases (RPI capped at 5%, CPI 2.5%) RPI-0.5% RPI-0.5% RPI-0.5% Total fair market value of assets 329.9 – 329.9 312.1 – 312.1 accordance with the requirements of section 28 of The Financial Post-2007 increases (CPI capped at 2.5%) CPI-0.6% CPI-0.6% CPI-0.6% Present value of liabilities (380.4) (6.6) (387.0) (392.6) (6.9) (399.5) Reporting Standard 102 (FRS102), are disclosed below and cover Rate of revaluation on deferred pensions RPI-0.5% RPI-0.5% RPI-0.5% Net pension liability (50.5) (6.6) (57.1) (80.5) (6.9) (87.4) both the RNLI 1983 Contributory Pension Scheme and the † payments to certain dependants. Dependants’ pensions are paid Rate of retail price inflation (RPI) 3.6 3.6 3.4 Rate of consumer price inflation (CPI) RPI-1.0% RPI-1.0% RPI-1.0% by the RNLI to dependants of former crew members who lost b) Changes in the present value of the defined benefit their lives on lifeboat service. Assumes life expectancy on retirement age 65 of: Years Years Years obligation are as follows: The figures in this note have been calculated by a qualified independent actuary based on a full actuarial valuation of the Retiring today – males 22.1 22.3 22.5 2017 2016 pension scheme as at 31 December 2014, rolled forward to Retiring today – females 24.4 24.8 25.0 Pension Dependants’ Total Pension Dependants’ Total 31 December 2017 using summarised cash flow and membership Retiring in 15 years – males 23.3 23.8 24.0 details and a full actuarial valuation of the dependants’ pensions scheme pensions scheme pensions Retiring in 15 years – females 25.8 26.5 26.7 £M £M £M £M £M £M as at 31 December 2017 on the basis required by FRS102. On this basis, the FRS102 accounting deficit for the defined †Represents the weighted average discount rate and inflation rate Opening defined benefit obligation 392.6 6.9 399.5 300.1 5.7 305.8 benefit pension scheme as at 31 December 2017 was £50.5M of the respective curves at the scheme’s average duration. Interest cost 10.1 0.2 10.3 11.2 0.2 11.4 ‡ (2016: £80.5M) and £6.6M (2016: £6.9M) for the dependants’ In excess of the Guaranteed Minimum Pension (GMP) element. Actuarial (gain)/loss (11.6) (0.2) (11.8) 90.6 1.3 91.9 pensions. The FRS102 basis is a prescribed basis that requires the Benefits paid (10.7) (0.3) (11.0) (9.3) (0.3) (9.6) discount rate to be the rate of return on high-quality corporate bonds with a duration equivalent to that of the liabilities. Defined benefit obligation at the year end 380.4 6.6 387.0 392.6 6.9 399.5 Each year, the scheme actuary assesses the financial position 61 62 Notes to the accounts Notes to the accounts

11. PENSION SCHEMES (CONTINUED) 12. TOTAL FUNDS ANALYSIS a) Consolidated balance sheet – analysis of funds c) Changes in the fair value of the scheme assets are as follows: 2017 summary

2017 2016 Unrestricted funds Restricted Endowed Total funds funds 2017 Pension Dependants’ Total Pension Dependants’ Total General Designated Fixed asset scheme pensions scheme pensions funds funds funds £M £M £M £M £M £M £M £M £M £M £M £M Opening fair value of scheme assets 312.1 – 312.1 277.5 – 277.5 Interest income on scheme assets 8.1 – 8.1 10.5 – 10.5 Fixed assets – – 454.7 – – 454.7 Return on scheme assets greater than Investments 68.8 79.3 – 113.4 16.4 277.9 11.0 – 11.0 24.0 – 24.0 discount rate Net current assets 69.1 – – 21.4 – 90.5 Employer contributions 9.4 – 9.4 9.4 – 9.4 Creditors falling due (6.3) – – – – (6.3) Benefits paid (10.7) – (10.7) (9.3) – (9.3) after more than 1 year Defined benefit Fair value of scheme assets at the year end 329.9 – 329.9 312.1 – 312.1 (50.5) – – – – (50.5) pension liability The actual return on scheme assets was £19.1M (2016: £34.5M). Total 81.1 79.3 454.7 134.8 16.4 766.3

d) The amounts included within the Statement of b) Endowed funds – analysis of major funds Financial Activities are as follows: Opening Income Expenditure Investment Closing Purpose balance gains balance 2017 2016 Name of fund of fund 2017 2017 2017 2017 2017 Pension Dependants’ Total Pension Dependants’ Total £M £M £M £M £M scheme pensions scheme pensions £M £M £M £M £M £M Roy Barker – All-weather permanent lifeboat 10.2 – – 0.3 10.5 Net interest on net defined benefit liability 2.0 0.2 2.2 0.7 0.2 0.9 construction Total amount charged within 2.0 0.2 2.2 0.7 0.2 0.9 Morrell – Dungeness net income/(expenditure) expendable Lifeboat Actuarial (gain)/loss (11.6) (0.2) (11.8) 90.6 1.3 91.9 Station – 4.6 – – 0.1 4.7 Return on scheme assets greater general (11.0) – (11.0) (24.0) – (24.0) than discount rate Other endowed Remeasurement effects recognised funds 1.1 – – 0.1 1.2 (22.6) (0.2) (22.8) 66.6 1.3 67.9 in overall funds movement Total amount (credited)/charged to Total endowed (20.6) – (20.6) 67.3 1.5 68.8 15.9 – – 0.5 16.4 the Statement of Financial Activities funds A fisherman gets a taste of the debilitating effects of cold water in the RNLI’s sea Last year our crew members spent a total of survival pool. Read more about this fishing safety event at RNLI College on page 13 207,839 hours at sea on rescues and exercises

63 64 Notes to the accounts Notes to the accounts

12. TOTAL FUNDS ANALYSIS (CONTINUED)

c) Restricted funds Opening Income and Expenditure Transfers Closing d) Designated funds Opening Income and Expenditure Transfers Closing – analysis of major funds balance investment balance – analysis of funds balance investment balance gains There are over 700 of these restricted Donor name Purpose of fund gains The planned capital expenditure fund Name of fund Purpose of fund 2017 2017 2017 2017 2017 funds and so this table only details those 2017 2017 2017 2017 2017 has been set up to reassure major £M £M £M £M £M £M £M £M £M £M funds with a balance of more than £2.0M. contractors and suppliers on capital The transfers represent either a transfer Richard W Colton All-weather lifeboat construction 8.8 0.3 – (3.7) 5.4 contracts that the RNLI will have the Planned capital expenditure Lifeboat stations and launch equipment for the next 3 years 63.7 – – 15.6 79.3 to a fixed asset fund, where the fund is Various donors Jersey Lifeboat Station – general 6.9 0.5 (0.3) – 7.1 necessary funds to complete those for the purpose of asset construction and long-term contracts. The international Gough Ritchie Trust Isle of Man lifeboat stations – general 3.9 0.4 – – 4.3 International International work not covered by restricted funds – 2.4 (2.4) – – the asset is completed, or a previous year fund sets aside funds from investment adjustment, where a donor or legator has Various donors Guernsey Lifeboat Station – general 3.0 1.2 (0.2) – 4.0 gains for international work to reassure Total designated funds 63.7 2.4 (2.4) 15.6 79.3 added a restriction at a later date or the Various donors Sheringham Lifeboat Station – general 2.8 – – – 2.8 RNLI supporters that their donations are restriction has been subject to negotiation. Various donors Morecambe Lifeboat Station – general 2.5 0.2 (0.1) – 2.6 being used as they expect. The Bridlington funds that are under Various donors Scotland running costs 2.4 1.4 (3.8) – – £2.0M have been analysed to show the transfer between the different funds this Anonymous legacy All-weather lifeboat construction – Anstruther 2.2 0.1 – – 2.3 year. It is worth noting that, while the John and Elizabeth Allan Memorial Trust All-weather lifeboat construction – Seahouses 2.0 0.2 – – 2.2 funds for Bridlington have been analysed John and Elizabeth Allan Memorial Trust All-weather lifeboat construction – Girvan 2.2 – – (2.2) – in detail to show how they are being spent 13. LINKED CHARITIES Opening Income Expenditure Transfers Closing Roy Barker All-weather lifeboat construction 2.2 0.1 – – 2.3 balance 2017 2017 2017 balance at the station, the donor(s) may have only The RNLI has a number of linked charities Donor name Purpose of fund 2017 2017 restricted for the overall benefit of the Joanna Williams All-weather lifeboat construction 2.0 – – – 2.0 that have been established over the £M £M £M £M £M station. This may also be true of other funds Various donors All-weather lifeboat construction – Bridlington 2.1 – – (2.1) – years, separated from the charity for detailed here. Various donors Bridlington Lifeboat Station – construction 1.4 – – (1.4) – a variety of reasons, due to the nature Lifeboatmen’s Benevolent Fund Grants for distressed past or present crew members 1.8 0.1 (0.1) – 1.8 There are two restricted funds listed of the fund or the original terms of the Various donors Bridlington Lifeboat Station – general 0.3 0.4 (0.4) – 0.3 Langstreth Culliford Trust Grants for dependants of lifesavers 0.2 – – – 0.2 here from two donors (RNLI subsidiary legacy or donation. All of the funds of companies and Elizabeth O’Kelly) that Anonymous donation All-weather lifeboat – Newcastle 2.0 0.1 – – 2.1 these charities are consolidated into the John William Archer All-weather lifeboat construction 0.1 – – – 0.1 RNLI subsidiary companies To set up a lifesaving endowment – – – 5.5 5.5 have been donated on the basis that the RNLI’s accounts. The current active linked Charles Carr Ashley Lifeboat maintenance and support for crew 0.1 – – – 0.1 monies will be transferred to an appropriate Richard W Colton ON1337 – Hastings ALB – 0.1 – 2.2 2.3 charities with a funds balance over £0.1M Anna Stock Memorial Fund Col Stock lifeboat – construction and maintenance 0.1 – – – 0.1 endowment fund, once the legal position Elizabeth O'Kelly Fund To be used in Ireland – Endowment fund – 5.5 – – 5.5 as at 31 December 2017 are as follows: has been established. The RNLI subsidiary Total of linked charities 2.3 0.1 (0.1) – 2.3 Various donors Wells-next-the-Sea shoreworks – 2.2 – – 2.2 companies’ donation of £5.5M has been restricted at the time of gifting those funds Total of major funds 46.7 12.7 (4.8) (1.7) 52.9 to the RNLI. Work is ongoing on this matter Other restricted funds 73.4 38.1 (19.8) (9.8) 81.9 While there has been movement on all the above James Michael Bower Gift; Mrs Alice Gottwald; and is expected to be complete by the end Total restricted funds 120.1 50.8 (24.6) (11.5) 134.8 funds in the year, where it is less than £0.1M it has not Ralph Glister Award; Louise George Anderson Dunn; of 2018, at which time these funds will be been disclosed. Mrs Sadie Hughes; William Stephen Mellis; Miss Maud transferred to endowed funds. The RNLI also has other active linked charities Smith’s Reward; Salcombe Lifeboat Disaster Relief Fund; with a fund balance of less than £0.1M, or nil, and these Miss Annie Gertrude Shayler; The George Nichol Charity are as follows: John Jones Rowland; Isabella Irwin; for the RNLI; and RNLI Heritage Collection Trust 2012.

65 66 Notes to the accounts Notes to the accounts

14. CAPITAL COMMITMENTS 16. 2016 COMPARATIVES – FUNDS AND LINKED CHARITIES

At 31 December 2017, capital commitments amounted a) Consolidated statement of financial activities – previous year comparatives b) Consolidated balance sheet – analysis of funds to £18.4M (2016: £19.7M). The planned capital expenditure reserve within designated 2016 summary funds is there to assure suppliers that the RNLI can meet its planned capital expenditure. This provision is for lifeboat station Unrestricted funds Restricted Endowed Total Unrestricted funds Restricted Endowed Total construction and launch equipment only, now that all lifeboats funds funds 2016 funds funds 2016 General Designated Fixed asset General Designated Fixed asset are produced in-house. funds funds funds funds funds funds At 31 December 2017, this reserve totalled £79.3M (2016: £M £M £M £M £M £M £63.7M), representing 3 years worth of capital expenditure. £M £M £M £M £M £M Income and endowments from: In addition, a further £12.8M (2016: £12.4M) is held in restricted Fixed assets – – 445.8 – – 445.8 funds for this purpose. Legacies 98.6 – – 31.9 – 130.5 Investments 88.6 63.7 – 103.1 15.9 271.3 Donations 37.9 – – 13.6 – 51.5 Net current assets 65.6 – – 17.0 – 82.6 Trading activities 8.9 – – – – 8.9 Creditors falling due Investments 2.2 – – 0.1 – 2.3 (6.6) – – – – (6.6) after more than 1 year Charitable activities 3.6 – – – – 3.6 Defined benefit (80.5) – – – – (80.5) Other income 1.0 – – – – 1.0 pension liability 15. OPERATING LEASE COMMITMENTS Total income and endowments 152.2 – – 45.6 – 197.8 Total 67.1 63.7 445.8 120.1 15.9 712.6 Expenditure on: Land and buildings Other Legacies and donations (30.9) – (0.2) (0.1) – (31.2) 2017 2016 2017 2016 Trading activities (5.4) – (0.1) – – (5.5) £M £M £M £M Investment management (0.3) – – (0.1) – (0.4) c) Endowed funds – analysis of major funds At 31 December the ageing of total minimum lease Raising funds (36.6) – (0.3) (0.2) – (37.1) payments was as follows: Lifeboat service (27.2) – (1.6) (8.5) – (37.3) Opening Income Expenditure Investment Closing Purpose balance gains balance Payable within 1 year 1.3 1.1 1.2 1.1 Lifeboats, property and equipment (38.4) – (23.8) (13.0) – (75.2) Name of fund of fund 2016 2016 2016 2016 2016 Payable between 1 and 5 years 3.3 2.9 1.1 1.3 Lifeboat rescue (65.6) – (25.4) (21.5) – (112.5) £M £M £M £M £M Lifeguard rescue (18.1) – (1.6) (0.2) – (19.9) Payable after more than 5 years 5.2 5.0 – – Roy Barker – permanent All-weather Total 9.8 9.0 2.3 2.4 International – (2.0) – (0.1) – (2.1) lifeboat 9.5 – – 0.7 10.2 Safety, education and awareness (11.5) – (0.1) – – (11.6) construction Certain property leases are for an indefinite period, with Charitable activities (95.2) (2.0) (27.1) (21.8) – (146.1) Morrell – expendable Dungeness Lifeboat the RNLI having the right to early termination should the need Total expenditure (131.8) (2.0) (27.4) (22.0) – (183.2) Station – 4.2 – – 0.4 4.6 arise. In calculating minimum lease payments for these leases, Net gains on investments 13.7 2.0 – 3.8 1.1 20.6 general a 50-year duration has been assumed. Net income/(expenditure) 34.1 – (27.4) 27.4 1.1 35.2 Other endowed funds Transfers between funds (8.9) (15.0) 46.1 (22.2) – – 1.1 – – – 1.1 Actuarial losses on pension schemes (67.9) – – – – (67.9) Net movement in funds (42.7) (15.0) 18.7 5.2 1.1 (32.7) Total endowed funds 14.8 – – 1.1 15.9 Ninia (13) plays in the river near Bucalevu Village in Fiji – just one of the countries we’re working with to tackle drowning

67 68 Notes to the accounts Notes to the accounts

16. 2016 COMPARATIVES – FUNDS AND LINKED CHARITIES (CONTINUED) e) Designated funds – analysis of funds

d) Restricted funds – analysis of major funds Opening Income and Expenditure Transfers Closing balance investment balance Name of fund Purpose of fund gains Opening Income and Expenditure Transfers Closing 2016 2016 2016 2016 2016 balance investment balance £M £M £M £M £M Donor name Purpose of fund gains Lifeboat stations and launch equipment 2016 2016 2016 2016 2016 Planned capital expenditure 78.7 – – (15.0) 63.7 £M £M £M £M £M for the next 3 years International work not covered Richard W Colton All-weather lifeboat construction 8.6 0.2 – – 8.8 International – 2.0 (2.0) – – by restricted funds Various donors Jersey Lifeboat Station – general 6.6 0.5 (0.2) – 6.9 Gough Ritchie Trust Isle of Man lifeboat stations – general 3.6 0.3 – – 3.9 Total designated funds 78.7 2.0 (2.0) (15.0) 63.7 Various donors Guernsey Lifeboat Station – general 3.4 0.2 (0.6) – 3.0 Various donors Sheringham Lifeboat Station – general 2.1 0.8 (0.1) – 2.8 f) Linked charities Various donors Morecambe Lifeboat Station – general 2.0 0.6 (0.1) – 2.5 Various donors Scotland running costs – 2.8 (0.4) – 2.4 Anonymous legacy All-weather lifeboat construction – Anstruther 2.1 0.1 – – 2.2 Opening Income Expenditure Transfers Closing balance 2016 2016 2016 balance Donor name Purpose of fund John and Elizabeth Allan Memorial Trust All-weather lifeboat construction – Seahouses 2.1 – (0.1) – 2.0 2016 2016 John and Elizabeth Allan Memorial Trust All-weather lifeboat construction – Girvan 2.0 0.2 – – 2.2 £M £M £M £M £M Roy Barker All-weather lifeboat construction 1.3 0.9 – – 2.2 Lifeboatmen’s Grants for distressed past or 1.7 0.1 – – 1.8 Anonymous donation All-weather lifeboat construction – 2.0 – – 2.0 Benevolent Fund present crew members Various donors All-weather lifeboat construction – Bridlington – – – 2.1 2.1 Langstreth Culliford Trust Grants for dependants of lifesavers 0.2 – – – 0.2 Various donors Bridlington Lifeboat Station – construction 3.0 – (2.3) 0.7 1.4 Various donors Bridlington Lifeboat Station – general 2.8 0.5 (0.2) (2.8) 0.3 John William Archer All-weather lifeboat construction 0.1 – – – 0.1 Total of major funds 39.6 9.1 (4.0) – 44.7 Other restricted funds 75.3 40.3 (18.0) (22.2) 75.4 Charles Carr Ashley Lifeboat maintenance and support for crew 0.1 – – – 0.1

Total restricted funds 114.9 49.4 (22.0) (22.2) 120.1 Anna Stock Col Stock lifeboat – construction 0.1 – – – 0.1 Memorial Fund and maintenance Total of linked charities 2.2 0.1 – – 2.3

Our lifeguards patrolled nine new beaches in 2017. Training is vital to saving more lives, like this casualty care exercise on a beach in north Devon.

69 70 RNLI officers and contacts RNLI officers and contacts

Mark Byford Eddie Donaldson BSc FCA Sonia Modray Chris Walters Rosie Norris Mark is a former broadcasting Eddie was a partner with Sonia is an interim director CEng MEng MBA FIMarEST FRINA Rosie has 30 years’ executive, and was deputy KPMG for 23 years, during and business adviser. From Chris is a chartered engineer investment management RNLI director-general of the BBC which time he was on both December 2012 to April and naval architect with over industry experience. and head of BBC journalism the UK and EMA executive 2013 she was interim finance 25 years’ experience in the Formerly a fund manager, from 2004 to 2011. He was elected to the teams. He was elected to the RNLI Council in director at the RNLI. She was elected to the marine and energy sectors. He has held senior she now represents a range of investor interests officers RNLI Council in 2011 and was appointed May 2013, appointed a trustee in July 2013, and RNLI Council in 2014 and appointed a trustee executive positions within the Lloyd’s Register and is chair of the Charities Official Investment a trustee in 2012. Mark became chairman of the is currently treasurer and a deputy chairman. in 2015. Sonia is chairman of the Property Group and the P&O Group. Chris joined the Fund and a non-executive director of CCLA. Audit and Risk Committee in 2017. He has chaired the Finance and Investment Committee and is a member of the RNLI in 2012 as a member of the Technical She was elected to the RNLI Council in 2016 ‘The appeal of the RNLI has always been Committees since 2014. Finance Committee. Committee. He was elected to the RNLI Council, and became a trustee in February 2018. and the strong sense of volunteering, courage, ‘I have always admired those in the RNLI who risk ‘From my first day at the RNLI I was appointed a trustee and became chairman of She is a member of the Investment independence and community.’ their lives for others, so I jumped at the chance impressed by the selfless dedication and the Technical Committee in May 2015. and Finance Advisory Committees. to come onboard myself.’ professionalism of everyone involved with ‘Inspired by the courage of volunteer crews and ‘I am thrilled to contribute to the preservation Janet Cooper OBE this inspiring organisation.’ communities, I am delighted to play a role in and continued progress of such an iconic service.’ contacts Janet is a lawyer specialising advancing the safety and performance of the in remuneration and Sir Peter Housden KCB RNLI fleet’ corporate governance. Sir Peter has served as a Mike Sturrock PATRON She is a co-founding partner permanent secretary in both With a background in HM The Queen of Tapestry Compliance and was a partner at Whitehall and Scotland. technology spanning Rear Admiral global law firm Linklaters for 20 years. Janet was He has a background in public numerous industries and Roger Lockwood CB PRESIDENT a member of the RNLI Resources Committee services in the UK and Ireland. He was elected sectors, Mike is now an After serving in the Royal HRH The Duke of Kent KG from 2011 to 2014. She was elected to the RNLI to the RNLI Council in May 2012 and was executive director of Domestic & General Navy for 34 years, Roger was Council and appointed as a trustee in 2014. appointed a trustee in November 2013. insurance as chief information officer and appointed chief executive of TRUSTEE BOARD ‘I am inspired by the many volunteers who work ‘I want to help the RNLI be the very best director of business transformation. His early the Northern Lighthouse Board in 2006 until so hard to provide the RNLI’s invaluable service.’ organisation it can be, supporting coastal work career was at sea as a professional yacht his retirement in 2014. He was elected to the Stuart Popham QC(Hon) both here and overseas.’ captain. Mike was elected to the RNLI Council RNLI Council in May 2015, served as a member After working as a solicitor for in May 2015 and appointed a trustee in of the Scottish Council from 2016 to 2017 and over 35 years, Stuart joined David Delamer November 2016. appointed its chairman in 2017. Roger was Citigroup in July 2011 as vice- David is managing director Vice Admiral ‘I’ve had a passion for the sea all my life, so it’s appointed a trustee in February 2018. chairman of EMEA Banking. of Technico, a company Sir Tim Laurence a huge privilege to be part of the RNLI and work ‘With two maritime careers behind me, the RNLI He also chairs the policy institute Chatham specialising in solutions for the KCVO CB ADC(P) in the most extraordinary culture with such has always been part of my professional life. I am House. He was elected to the RNLI Council in Irish telecoms industry. David Sir Tim is chairman of English motivated people.’ now delighted that I should be part of the RNLI May 2011 and appointed a trustee in July 2013. was elected to the RNLI Council in 2012. He was Heritage, vice-chairman of the instead and to be able to contribute actively to He became chairman of the Audit and Risk appointed a trustee in 2014 and chairman of the Commonwealth War Graves Commission and the saving of lives at sea.’ Committee in 2014. In November 2015 RNLI’s Council for Ireland in 2015. chairman of the Major Projects Association. Stuart was appointed RNLI vice-chairman. ‘For me, the RNLI gives incredible He was elected to the RNLI Council in 2004 He succeeded Charles Hunter-Pease importance and value to individual life.’ and appointed a trustee in 2011. He became as chairman in October 2016. chairman of the Operations Committee in 2012. ‘As a lifelong sailor with family who recognise ‘Seeing the shiny, beautiful and awe-inspiring The Lizard lifeboat crew launch the Tamar class lifeboat the real value of the RNLI, I felt I could do Dungeness lifeboat aged 4 – I was hooked Rose down the slipway of their award-winning boathouse. Slipway launches may look spectacular but each one my bit to help.’ for life.’ follows a precise and controlled process

71 72 RNLI officers and contacts RNLI officers and contacts

CHAIRMAN Jonathan Hart EX OFFICIO GOVERNORS PRINCIPAL SOLICITORS STANDING COMMITTEES COMMUNITY LIFESAVING AND FUNDRAISING DIRECTOR Stuart Popham QC(Hon) Geoff Holt MBE DL The lord mayor of London Wilsons Solicitors Membership Nomination Committee Leesa Harwood Professor Dominic Houlder The chairman of the Baltic Exchange Steynings House Chairman: Stuart Popham QC(Hon) DEPUTY CHAIRMEN Sir Peter Housden KCB The first sea lord Fisherton Street ENGINEERING AND ASSET MANAGEMENT DIRECTOR Eddie Donaldson BSc FCA Charles Jones The chairman of Lloyd’s Salisbury Remuneration Committee Angus Watson Vicky Wright OBE (stepped down July 2017) Rear Admiral Mark Kerr The master of the Honourable Company of Master Mariners SP2 7RJ Chairman: Vicky Wright OBE (stepped down July 2017) Vice Admiral Sir Tim Laurence KCVO CB ADC(P) (appointed July 2017) Dr John Killeen (elected September 2017) The deputy master of Trinity House Chairman: Sir Peter Housden KCB (appointed July 2017) FINANCE AND CORPORATE STRATEGY DIRECTOR Vice Admiral Sir Tim Laurence KCVO CB ADC(P) The chairman of the Royal Yachting Association Brechin Tindall Oatts Alan Pardon FCA FCMI (retired April 2017) TREASURER Neil Lerner (stepped down September 2017) The chairman of the Northern Lighthouse Board 48 St Vincent Street Audit and Risk Committee Eddie Donaldson BSc FCA Rear Admiral Roger Lockwood CB The chairman of the Commissioners of Irish Lights Glasgow Chairman: Stuart Popham QC(Hon) (stepped down October 2017) FINANCE DIRECTOR Francis George Major MBE JP DL The UK national hydrographer G2 5HS Chairman: Mark Byford (appointed October 2017) Darren Spivey, Acting Finance Director OUTGOING TRUSTEES IN 2017 Alan Marsh FICS (May 2017 to February 2018) Vicky Wright OBE (stepped down July 2017) John McBride INVESTMENT ADVISER O’Connell Brennan Investment Committee Steven Peacock, Finance Director (appointed February 2018) Niamh McCutcheon Lane Clark & Peacock LLP Armitage House Chairman: Eddie Donaldson BSc FCA COUNCIL Paddy McLaughlin 95 Wigmore Street 10 Lower Hatch Street INTERNATIONAL DIRECTOR HRH The Duke of Kent KG (President) Captain Ian McNaught MNM London Dublin 2 Property Committee James Vaughan Stuart Popham QC(Hon) (Chairman) Robin Middleton CBE W1U 1DQ Chairman: Sonia Modray Job role title changed to Strategy, Performance Dr Peter Aitken MB ChB MTCGP FRCPsych FHEA DCH DRCOG Sonia Modray Bond Dickinson and International Director (May 2017) (elected September 2017) Sandra Morson PRINCIPAL BANKERS Oceana House ADVISORY COMMITTEES Bob Allan OBE (resigned June 2017) Rosemary Norris Barclays 39–49 Commercial Road Operations Committee OPERATIONS DIRECTOR Tony Allen Paul O’Leary (elected September 2017) Ground Floor Southampton Chairman: Vice Admiral Sir Tim Laurence KCVO CB ADC(P) George Rawlinson Alison Appleyard BEd (Hons) NPQH ARCM LTCL FCMI Mark Pritchard Tagus House SO15 1GA The Hon Christopher A Brooke DL Clive Rand Ocean Village Technical Committee PEOPLE DIRECTOR John Burke (elected September 2017) Michael Seymour Southampton Charles Russell Speechleys LLP Chairman: Chris Walters CEng MEng MBA FIMarEST FRINA Sue Barnes Mark Byford Archie Frederick Smith SO14 2ZP 8–10 Fetter Lane Professor John Chudley BSc PhD CMarEng CEng FIMarEST Commodore David Squire CBE MNM FNI FCMI London Finance Committee SUPPLY CHAIN DIRECTOR Andrew Cooper CMG Mike Sturrock AUDITOR EC4A 1RS Chairman: Eddie Donaldson BSc FCA Claire Deuchar Janet Cooper OBE Professor Phil Sutton CBE FREng PhD Crowe Clark Whitehill LLP Sir Andrew Cubie CBE FRSE (stepped down September 2017) Miles Templeman (resigned January 2017) St Bride’s House Blake Morgan LLP Medical Committee CHIEF INFORMATION OFFICER Professor Charles Deakin MA MD FRCP FRCA FERC FFICM Professor Mike Tipton MBE MSc PhD (elected September 2017) 10 Salisbury Square Harbour Court Chairman: Professor Charles Deakin MA MD FRCP FRCA FERC FFICM Ian Golding, Interim Chief Information Officer David Delamer Dr Jean Venables CBE London Compass Road (January to October 2017) Eddie Donaldson BSc FCA Ian Venner (elected September 2017) EC4Y 8EH North Harbour Heritage Committee Claire Deuchar (appointed November 2017) William Everard CBE BSc(Eng) Sir Roger Vickers KCVO (stepped down September 2017) Portsmouth Chairman: Dr Nick Winterbotham FMA FASDC Roger Fairhead (elected September 2017) Chris Walters CEng MEng MBA FIMarEST FRINA PO6 4ST Fiona Fell John Whybrow CHIEF EXECUTIVE The RNLI wishes to thank its past chairmen and vice-presidents James Fulford MBA Lesley Wilkin (elected September 2017) Sackers & Partners LLP Paul Boissier CB MA MSc for their ongoing support and commitment. Following their Andrew Given (stepped down September 2017) Kate Wilson (elected September 2017) 20 Gresham Street significant contribution to the RNLI Council we are pleased James Grazebrook OBE Dr Nick Winterbotham FMA FASDC London BUSINESS SERVICES AND SUPPORT DIRECTOR to welcome Christopher Brooke, William Everard, Robin Martin Gregory Denis Woulfe (elected September 2017) EC2V 7JE Angela Rook BSc MBA ACIS Middleton, Archie Smith and David Squire Adam Griffin Vicky Wright OBE (stepped down September 2017) as our new vice-presidents. Captain Neil Hardy MBE FNI (elected September 2017)

73 74 RNLI governance and management structure Awards

• 238 lifeboat stations • More than 4,950 volunteer crew RNLI • 249 lifeguarded beaches • Over 3,500 shore-based volunteers lifesaving • Flood rescue • Over 1,600 lifeguards (peak season) RNLI delivery • Community safety • Volunteer education and coastal Awards to governance • Partnership and advocacy (inc international programmes) safety officers supported by 1,631 staff members Locations Departments (excluding seasonal staff) • Regional bases • Strategy, Performance and International RNLI people in 2017 and • Manufacturing units • Operational Policy • Community • Evidence, Insight and Technology RNLI in the fundraising offices, • Engineering and Asset Management management community and some of which are • Community Lifesaving Headquarters collocated with • International QUEEN’S BIRTHDAY HONOURS 2017 MARKETING AND MEDIA regional bases • Business Services and Support • Ron Cannon MBE DMA Awards: structure • People • Robin Cardwell MBE • Best B2C – Gold (Communication Saves Lives) • Paul Metcalfe MBE • Charity – Gold (Communication Saves Lives) • Best digital performance – Gold (Communication Saves Lives) 1,016 active fundraising groups Best integrated campaign – Bronze (Communication Saves Lives) Volunteer fundraisers, • NEW YEAR HONOURS 2018 • 23,000 volunteer community fundraisers (announced December 2017) Best use of the moving image or audio – Bronze (Float to Live) speakers and press officers • • 410 education volunteers managed by • • Thomas Burgess OBE Charity Film Awards: • Tony Delahunty OBE • Best documentary or long-form film William Hopkins MBE – Bronze (A Night of Courage and Loss) Financial supporters • 500,000+ individual members and donors, • plus corporate partners and charitable trusts • David (Dai) Jenkins MBE • Chris Lewis MBE SAFETY AND EDUCATION Executive Team • Richard Marriott BEM Fishing News Awards • David Steenvoorden MBE • Contribution to Safety Award (Fishing Safety Team) • Professor Mike Tipton MBE International Safety Media Awards: overseen by • Membership Nomination RNLI companies • Web and Online – Gold (Respect the Water) • Remuneration • RNLI Sales IMRF Awards: Standing committees APPRENTICESHIPS • Audit and Risk • RNLI College British Marine Electrical Electronics For Innovation and Technology in Maritime Search and Rescue Chairman and trustees • • Investment • RNLI Trading (Dormant) Association Apprentice Awards: E&PDE Awards: • Property • SAR Composites (Dormant) • Jamie Ballam and Harry Butterfield • Best Paper – John Powell (RNLI) with Gary Underwood appointed by (competition winners) (Bournemouth University) • Operations Advisory committees • Technical FINANCE TOURISM Council • Finance PwC Awards: Dorset Tourism Awards: • Medical • Excellence in Reporting, Charities • Large Hotel of the Year – Silver (RNLI College) elected by • Heritage (RNLI Annual Report and Accounts 2016) • Guided Tour of the Year – Bronze (RNLI College) A Torbay crew member soothes a frightened Collie after she VOLUNTEERING falls from a cliff on to the rocky shoreline at Berry Head Quarry. • Dorset Museums Association Lifeboat volunteers and coastguards worked together to haul Governors her back to safety in a special dog rescue bag • Heritage Volunteer of the Year (Richard Cant) 75 76 Thank you Thank you

TRUSTS, FOUNDATIONS • The Heritage Lottery Fund for kindly supporting the • The Out and About Fund at the Community Foundation • A local sailing family for their continued support CORPORATE SUPPORTERS AND INSTITUTIONAL DONORS digitisation of the Beken’s Lifeboat Glass Plate serving Tyne and Wear and Northumberland for very for Kippford Lifeboat Station. We would like to thank all the companies and organisations that Thank you We are extremely lucky to be able to work with so many Negative Collection. generously supporting Amble, Berwick-upon-Tweed, Blyth, • An anonymous donor with Cornish ancestry. supported us in 2017. In particular, for their continued generous charitable organisations and individuals. Many of • The Hugh Fraser Foundation for kindly supporting Craster, Cullercoats, Newbiggin, Seahouses, and Tynemouth • Mr Alan Whiteley for a generous donation and significant support, we thank: these support on a regular basis or phase their gifts over shoreworks at Oban Lifeboat Station. Lifeboat Stations. to Silloth Lifeboat Station and RNLI general funds. • Apache North Sea The RNLI would like to thank the thousands of individuals several years, which really helps us plan for our future, • The Iliffe Family Charitable Trust for generously • The Owl Trust for generously supporting crew training • Mr John Repsch for his generous support for crew • Dana Petroleum who made our lifesaving work possible in 2017. knowing that we can match our lifesaving projects to the supporting crew training. at 14 lifeboat stations on the north-east coast of England training at Southend-on-Sea Lifeboat Station. • Fred. Olsen Cruise Lines specific objectives of these trusts, foundations and donations. • The Joan Braithwaite Sailing Trust for kindly supporting and for their engagement with the communities. • Pat and Susan Russell for their generous • GAA LEGACIES Thank you all so much. the RNLI’s apprenticeship programme through the Joan • The Princess Charlene of Monaco Foundation for their contribution to Tynemouth Lifeboat Station. • GAC UK The RNLI is very grateful for every legacy, regardless of its size. • Annie Dean Charitable Trust for generously supporting Braithwaite Scholarship. commitment to and support of our drowning reduction • Pat and Jimmy Hamilton for their continued support • Gwynt y Môr Offshore Wind Farm* Here are just some of the gifts in Wills we received last year: the regeneration of Selsey Lifeboat Station. • The John Scott Trust for supporting the RNLI. projects in Tanzania and Bangladesh. of the RNLI on the west coast of Scotland. • Haven Holidays • Mrs Elizabeth O’Kelly of Co Laois gave a legacy in excess • Dr Scholl Foundation for their very generous support • The Jordan Charitable Foundation for their valuable • The RS Macdonald Charitable Trust for very generously • Peter Ross and Rea Hollis for their generous support • J.P. Boden & Co. Limited of €6M, for the benefit of the RNLI’s work in Ireland. towards essential running costs at Douglas Lifeboat Station. contribution to the boathouse extension at Kirkwall Lifeboat supporting beach lifeguards in Fife. of Clifden Lifeboat Station and funding of the D class • MEATliquor Mrs O’Kelly had a great regard for the volunteer work • Foster Wood Foundation for their generous donation in Station and to the running costs of the RNLI. • The Samuel and Freda Parkinson Charitable Trust for lifeboat Celia Mary. • Met Office carried out by the RNLI, which appealed to her ethos. support of the new floating boathouse at Poole. • The Kenneth and Susan Green Foundation for their their valuable support of crew training at Workington • Robert G Daws for his generous support of Ballyglass, • Nexen Petroleum UK Limited • Michael Hugh Barrett, of New Maldon in Surrey, was a • GLS Will Trust for generously funding our lifeguarding continuing support of crew training at The Lizard Lifeboat Station. Newhaven and Torbay Lifeboat Stations. • Nicholson’s, part of Mitchells & Butlers Leisure Retail Limited lifelong supporter of the RNLI who left a legacy of £188,680. at St Ouen’s Bay, Jersey. Lifeboat Station. • Jersey Overseas Aid for their generous support to deliver • Sheila McConnell for her generous gift to the RNLI • Ørsted He was born in Penzance and ‘grew up with the lifeboats’. • Lloyd’s Register Foundation for very generously supporting • The KMF Maxwell Stuart Charitable Trust for water safety and survival education to schoolchildren in memory of her late husband. • PayPal Giving Fund UK Even when he moved to London, Mr Barrett continued to the sea survival and firefighting training at RNLI College. generously supporting shoreworks at Oban in Ghana. • Sue Scott for her generous contributions • The Lifeboat Fund support the RNLI and enjoyed visiting lifeboat stations • Miss EM Lidbury Charitable Trust for their valuable and Kirkwall Lifeboat Stations. to Aldeburgh Lifeboat Station. • Toolstation whenever he could. Mr Barrett’s generous bequest will be contribution to the RNLI. • The Laurence Misener Charitable Trust for their MEMBERS AND SUPPORTERS • Dave and Barbara Smithson for their continued support used for shoreworks at two lifeboat stations. • Mr WD Bell, for generously supporting a relief Shannon, continuing support and generous contribution to the RNLI. Whether your donation pays for welly boots or a boat, we are and for generously funding the new D class at Horton and OUR FUNDRAISERS • Miss Winifred Elizabeth Dickson of Bedford, a staunch in memory of Mrs Elizabeth Bell. • The Lawson Trust for kindly supporting essential crew grateful for the generosity of all our supporters. Every pound Port Eynon Lifeboat Station. Thank you to the thousands of volunteers in our branches and supporter of the RNLI for many years, left a pecuniary • Mrs Agnes AP Barr Trust for supporting a new launch and training at Dungeness Lifeboat Station. and euro given has a part to play in our lifesaving work. For their • Miss Rosemary MacLoughlin for her generous support guilds. Their hard work and dedication raised vital funds through bequest of £175,000, together with a share of her estate, for recovery vehicle for Anstruther Lifeboat Station. • The LM Simmons Trust for their valuable contribution significant contributions to the RNLI in 2017, we thank: of Tower Lifeboat Station. a huge range of activities – everything from coffee mornings to the purchase of a B class lifeboat to be named John Rowntree • Stelios Philanthropic Foundation for their generous to the RNLI. • April Grunnill for her continued and generous support summer fairs. And thank you to the communities they work in for in memory of a master mariner lost at sea in a winter storm donation towards our international programme. • The Manx Lottery Trust for their generous support of Skegness Lifeboat Station. their generous donations and support for lifesaving appeals off the coast of Great Yarmouth. • The B&J Lloyd Family Charitable Trust for their generous of the work of the RNLI on the Isle of Man. • Bill Wraith for his continued and generous support and campaigns. • Roy James Grigg, who was born in Cornwall and lived in support for the RNLI’s apprenticeship programme. • The Miss IF Harvey Charitable Trust for supporting of the RNLI. Chelmsford after serving in the RAF, generously bequeathed • The Charles Cooper Foundation for generously providing kit running and training costs at Troon Lifeboat Station. • Christopher Andreae and The Scorpion Trust for kindly Thank you to our shop and souvenir volunteers for keeping the a quarter of his estate for the general use of the RNLI. and training for the crew at Salcombe Lifeboat Station. • The Misses Barrie Charitable Trust for generously supporting the digitisation of the Beken’s Lifeboat Glass Plate RNLI open for business and raising over £6M. And thanks to the • Maurice Stevens Jones, with five generations of his family, • The Constance Travis Charitable Trust for their continued supporting crew training at Barmouth. Negative Collection. 1,056 independent fundraisers who walked, ran and jumped their enjoyed boating around Abersoch and generously left the support of our new Wells-next-the-Sea Lifeboat Station. • The Mrs JM Bagley Settlement for their very generous • David and Eleanor Holloway for their continued generous way to raising £650K in 2017. RNLI a legacy that will be used to purchase crew kit for the • The Dulverton Trust for their generous support of crew commitment to the RNLI’s operations in Guernsey. support of the RNLI. Abersoch station. Mr Jones and his family always recognised training at Trearddur Bay. • The Mrs Joan Alice Saunders Charitable Trust • Dorothy and George Derbyshire for their generous Thank you all for being the vital first link in saving lives. the dedication of the RNLI crews and enjoyed the peace of • The Ernest Kleinwort Charitable Trust for supporting our for supporting the RNLI. contribution to Longhope Lifeboat Station. mind of knowing that the RNLI would be there whenever they lifeguarding at Littlehampton and Chichester. • The Olive Herbert Charitable Trust for funding • Fred Kirk for his donation to the new Poole Lifeboat Station ventured out to sea. • The Ganton Furze Settlement for supporting our project a new D class lifeboat for Fowey Lifeboat Station. boathouse in memory of his late wife Dorothy. for a new pontoon and linkspan at Oban Lifeboat Station. • Mrs Heather Booker for generously funding the new • The Graham Trust for kindly supporting crew kit for the ToolTrak at Ilfracombe Lifeboat Station in memory *a project currently shared between Innogy UK, Stadtwerke München Troon, Largs and Helensburgh lifeboat crews. of her late husband Denny Booker. (Munich Principal Utilities), the UK Green Investment Bank and Siemens 77 78 Royal National Lifeboat Institution West Quay Road, Poole, Dorset, BH15 1HZ Tel 0300 300 9990 [email protected] RNLI.org

Illustrations: Stuart McReath Please note, graphics are for illustrative purposes only. They are not designed to be a technical depiction of RNLI operations.

Photos: RNLI/(Mark Barker, Anna Burn, Zackary Canepari, Ron Inett, Mike Lavis, Laura Lewis, Jack Lowe, Stephen Lowe, Nigel Millard, Andy Parish, Mike Rushworth, Nathan Williams), Alex Ellis-Roswell, Torbay Coastguard

The RNLI is the charity that saves lives at sea Royal National Lifeboat Institution, a charity registered in England and Wales (209603) and Scotland (SC037736). Registered charity number 20003326 in the Republic of Ireland

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