RNLI ANNUAL REPORT AND ACCOUNTS 2019

We are one crew. This is our watch We are the RNLI: The charity that saves lives at sea Every day of every year, 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 help, we always will be. CONTENTS Annual Report of the Trustees of the Royal National Lifeboat Institution

CONTENTS

01 Welcome 03 What we do 05 Our impact 13 Our plans 17 Financial review 23 Governance 35 Independent auditor's report 37 Financial statements 43 Notes to the accounts 69 Officers and contacts 73 Our structure

Just some of our crew members and lifeguards who featured in series four 75 Thank you of Saving Lives at Sea

RNLI ANNUAL REPORT AND ACCOUNTS 2019 WELCOME FROM THE CHAIRMAN AND CHIEF EXECUTIVE ‘Our founder established the RNLI to save lives both home and abroad. We remain true to that vision’

2019 was a busy year for the RNLI. Our lifeboat crews and lifeguards, volunteers, staff, shore teams, fundraisers – indeed everyone – faced the Perfect Storm. All are lifesavers and, together, they are One Crew saving lives at sea.

Living within our financial means, while lives of 374 men, women and children last well-established and has taken to the role experiencing an unceasing demand for year (329 in 2018) – and educated many with zeal, determination and ambition. our services, was challenging. We had to thousands more in water safety. We also Whether you’re a volunteer, supporter, make some difficult decisions and I want heard from more people who said that our governor, trustee, fundraiser, member of to thank you for your continuing support Float to Live water safety message helped staff – or one of the myriad other people vital and dedication. to save their lives. to the success of the RNLI – I want to thank Last year we also received press criticism Our courageous, selfless lifesavers you for everything you do. You enabled our of our international work to reduce the undertake thousands of amazing rescues lifesavers to rescue those in danger, while thousands of drownings worldwide. We are every year. Picking out one is not easy, but we helping others enjoy the water more safely proud of what our teams are achieving. Our recognised a special one in January – where As I write this we are in the midst of founder established the RNLI to save lives at Castletownbere lifeboat crew launched into Covid-19. The possible implications are sea both home and abroad. We remain true to a force 9 to save the lives of six fishermen. reviewed in this report. In such uncertain that vision. We did lose a few supporters after Coxswain Dean Hegarty very much deserves times I hope that you and your families will that coverage but, the good news is, very many the RNLI Bronze Medal for his part in this stay well and look after yourselves and those more spoke out in our support, increased their difficult mission. See page 7 for more on this. near you. The RNLI will be doing all it can. donations or signed up as members. 2019 saw the retirement of Paul Boissier, As you will see in this report, our income who had led the RNLI as chief executive for showed some improvement following our nearly a decade. He achieved significant Perfect Storm campaign and by reaching out advances and oversaw improvements to new supporters. This helped us to position ensuring we remain the marvellous service ourselves to meet the growing demands of that we are today. We owe him a big thank Stuart Popham our lifesaving work. RNLI people saved the you. Mark Dowie, his successor, is now RNLI Chairman

1 WELCOME

‘It’s our job to keep our charity safe and secure for the next 200 years’

The RNLI is powered by passionate, talented and kind people. Volunteers, staff and supporters like you worked together as One Crew and achieved a great deal in 2019. Thank you for playing your part in that.

From a personal perspective, my first published an important document that shares remain loved and treasured by so many. 8 months as RNLI Chief Executive were filled our strategic intent and ensures that everyone This also means preparing for the future. with challenges but also with moments of is pulling in the same direction, within the By modernising, pushing the boundaries surprise and joy. We took decisive action and bounds of our Purpose and towards our Vision. and exploring new ways, we can save even made great progress towards some of our We will continue working and thinking more lives. long-term goals. Sadly, this involved saying differently, with razor-sharp focus, so that While the ramifications of Covid-19 goodbye to some of our colleagues and we can operate with maximum efficiency. are still developing, they are having a friends, but it was unquestionably in the best In 2020 and beyond, we will reinforce two significant effect on our operations, interests of our charity. important shifts in our thinking: staff and volunteers. We hope that these We put out our biggest fundraising appeal effects will be relatively short-lived. The ever and smashed its target, we launched a • First, we are One Crew. One Crew commitment to our Purpose, memory by sharing the names of thousands We are all lifesavers and we are all Vision and the Outcomes we are working of loved ones on Invergordon’s Shannon class fundraisers. Everyone is valuable and we on remains undiminished. lifeboat, and we got new craft and protective are all working together towards a shared kit to thousands of volunteer lifesavers at the goal of saving as many people from That is what has always driven us and it’s sharp end. drowning as possible. what makes every one of us a lifesaver. We also set up a new regional structure to improve support for our people and our • Secondly, this is Our Watch. lifesaving and fundraising activities at home, It’s our time – like generations of lifesavers while our international advocacy and projects before us. It’s our job to keep our charity A Shannon class lifeboat, ready to leave the spray booth, at the RNLI's All-weather continued to make a huge difference to the safe and secure for the next 200 years Mark Dowie Lifeboat Centre in Poole cause of saving lives globally. We have now so that it can continue to save lives and RNLI Chief Executive

RNLI ANNUAL REPORT 2 AND ACCOUNTS 2019 WHAT WE DO WATER SAFETY FLOOD RESCUE Making people safer is core to the RNLI’s With sufficient notice, our flood rescue teams We save lives and prevent drowning through these key activities: operations. We use research, targeted can reach nearly any flood rendezvous point campaigns and lifesaving plans to encourage in the UK within 6 hours. changes in people’s behaviour, in and around the water.

LIFEBOATS LIFEGUARDS

Our lifeboat crews aim to launch within Our lifeguards aim to reach anyone up to 10 minutes of being alerted, and can operate 300m from shore, within the red and yellow up to 100 nautical miles out to sea. We aim flags on RNLI-patrolled beaches, within to reach at least 90% of casualties within 3½ minutes. 10 nautical miles of the coast, within 30 minutes of a lifeboat launch – in any weather. Most crew members are volunteers.

INTERNATIONAL FUNDRAISING

We work with partners globally and in As a charity, we rely on the generous support countries with a high-drowning burden to of donors to meet the cost of our lifesaving elevate the drowning problem onto the activities. We set exacting standards in our global agenda, widen the research base, grow fundraising to protect and maintain good skills and identify cost-effective and practical relationships with our supporters and ensure solutions to save more lives. financial stability.

3 WHAT WE DO Girvan volunteers brave the elements from the foredeck of their Shannon class lifeboat Elizabeth and Gertrude Allan SAVING LIVES

RNLI volunteer lifeboat crews provide a 24-hour search and rescue service in the UK and Ireland, and our seasonal lifeguards look after people on busy beaches. Our in-house experts and specially trained volunteers also support flood rescue throughout the UK.

MORE THAN A RESCUE SERVICE

Wherever drowning occurs, we aim to defeat it. With your support the RNLI can break the drowning chain and make early interventions by influencing, supervising and educating people. We work with partners to understand the risks and offer innovative solutions – and our Water Safety teams share that knowledge with anyone using the water to keep them safer. We share that expertise internationally too. We give support to countries where drowning rates are significant, and work with like-minded organisations to raise awareness of the problem and how we can address it together.

These lifesaving activities are underpinned by people and initiatives that raise funds and ensure that we are well- AROUND governed and compliant.

OUR VOLUNTEERS

Volunteers are the lifeblood of our charity, supported by 95% expert staff to enable communities to save lives. Around 95% of RNLI people are volunteers – including more OF RNLI than 5,600 crew members, 3,500 shore crew (including , station management), 180 lifeguards and 23,000 5,600+ 1500+ PEOPLE ARE fundraisers. Thousands more dedicated volunteers raise CREW MEMBERS LIFEGUARDS VOLUNTEERS awareness, give safety advice and help in our museums, shops and offices.

RNLI ANNUAL REPORT 4 AND ACCOUNTS 2019 OUR IMPACT IN 2019

RNLI lifesavers had another busy year, saving lives and reuniting families. Scotland In 2019 our volunteer lifeboat crews aided 9,379 people, RNLI LIFEBOAT 46 lifeboat stations LIFEBOAT LAUNCHES with our lifeguards aiding a further 29,334 (9,412 and STATIONS AND 7 lifeguard units 32,207 in 2018 respectively). Together, they saved the LIFEGUARD 9,000 lives of 374 people (329 in 2018). UNITS IN 2019 8,900 Our charity prevented other people getting into trouble 8,800 in the first place too. We reached millions with our Float to 8,700 Live message and more people came forward to tell us that it 8,600

helped to save their lives. We delivered Swim Safe lessons 8,500 Ireland to 22,000 children (19,379 in 2018) and spoke with thousands North and East 8,400 46 lifeboat stations more adults and children about water safety. 81% of the 36 lifeboat stations 8,300 12 lifeguard units UK population now consider safety important when in and 47 lifeguard units 8,200 around the water, with average 2019 results higher than any 8,100 previous year since this has been measured. The figure is 83% 8,000 Wales and West for the Irish population. 0 46 lifeboat stations We strengthened lifesaving partnerships with local 2014 2015 2016 2017 2018 2019 authorities, governments and like-minded organisations 49 lifeguard units across the UK, Ireland and around the world. We also increased the impact of our drowning prevention work with priority countries and continued to influence world leaders South West LIFEGUARD INCIDENTS and global policy. 33 lifeboat stations Read more on our 2019 performance on page 14. 91 lifeguard units South East 25,000 31 lifeboat stations 42 lifeguard units 20,000

15,000 38,713 KNOWN DROWNINGS 10,000 374 PEOPLE AIDED BY LIVES SAVED BY PREVENTED RNLI CREWS AND RNLI CREWS AND AS A DIRECT RESULT OF 5,000 LIFEGUARDS LIFEGUARDS RESPECT THE WATER (41,619 IN 2018) (329 IN 2018) (4 IN 2018) 0 11 2014 2015 2016 2017 2018 2019

5 OUR IMPACT Portsmouth volunteers in action onboard their D class Lifeboats lifeboat, Brian's Pride We provided crews with vital resources Our volunteer lifeboat crews thanks to ongoing have been saving lives for more than 195 years. public donations

That work remains at the heart of the RNLI today.

Ready to launch 24/7 from 238 lifeboat stations, our crews continued to provide a ring of safety around the UK and Ireland in 2019. They launched 8,941 times, aided 9,379 people and saved 220 lives. 3,614 lifeboat services were carried out in darkness and 468 required some kind of casualty care (first aid) by our crews. Tower and Plymouth were our busiest overall and coastal stations respectively, with inshore lifeboat crews carrying out the majority of total launches. To delve deeper into the numbers, download RNLI 2019 Operational Statistics at RNLI.org/OperationalStats2019. Lifeboat crews depend on well- maintained rescue craft, the best personal protective equipment and robust shore facilities to save lives. Regular training is essential too. In 2019 we delivered 339 planned training sessions to 1,889 crew 157 members, covering everything from LIFEBOATS navigation to casualty care. , , REFITTED, We were only able to provide crew 8941 252 699 MODIFIED OR 28 with these vital resources thanks to ongoing LIFEBOAT HOURS AT SEA NEW LIFEBOATS public donations. LAUNCHES GIVEN BY LIFEBOAT CREWS REPAIRED CONSTRUCTED (8,964 in 2018) (257,697 in 2018) (148 in 2018) (28 in 2018)

RNLI ANNUAL REPORT 6 AND ACCOUNTS 2019 OUR IMPACT Castletownbere crew head out CASE to sea onboard their Severn class lifeboat Annette Hutton STUDY RNLI LIFEBOAT ACTIVITY MAP 2019

Lifeboat launches Six saved in High to Low severe gale Bronze Medal rescue

Dean Hegarty, Coxswain of Castletownbere churning harbour mouth and back to the lifeboat, will receive the RNLI’s Bronze Medal safety of the pier. for Gallantry in May 2020 for the dramatic Crew Members John Paul Downey, rescue of six fishermen. David Fenton, Seamus Harrington, Martin The large fishing vessel Clodagh O had O’Donoghue, and Deputy Launching lost all power after fouling its propeller. Authority Michael Martin-Sullivan, received Drifting close to Piper Rocks in grim weather, a framed Letter of Thanks from the RNLI’s its six-man crew were in grave danger. Chairman for their part in the mission. Our lifesavers launched their Severn class RNLI Chief Executive Mark Dowie says: lifeboat in darkness into a force 9 gale, with ‘These awards mark the courage, skill and driving rain and heavy squalls. Arriving on dedication shown by the coxswain, crew and scene, the lifeboat volunteers saw the vessel officials involved and are testament to their was in a precarious position. Dean decided it outstanding teamwork and seamanship in was better to establish a tow, rather than risk perilous conditions.’ taking the men off amid the huge swells. With the weather deteriorating fast, there was only a short window to do this ‘Sea conditions were very before the vessel would be dashed onto the rocks. Dean skilfully manoeuvred the all- poor. The wind and tide weather lifeboat into position and, while he churned it up like an held it steady in mountainous seas, his crew mates on deck set up a tow rope. explosion.’ It took an hour to carefully tow the DEAN HEGARTY fishing boat and her crew through the COXSWAIN | CASTLETOWNBERE

7 OUR IMPACT Langland lifeguards keep a CASE protective eye on beachgoers Lifeguards STUDY

Seven out of ten people in the UK visit the coast at least once a year. Sadly, thousands of them end up in serious difficulties in the water ‘The swimmer had – including children. pretty much given up.

RNLI lifeguards continued to patrol 248 Lifeguards don't get wet as often as you She wouldn’t have of the busiest beaches across the UK and may think, as most of their work is about lasted much longer.’ Channel Islands in 2019. Together, they stopping people getting into trouble in the TOM JOHN attended 17,356 incidents, aided 29,334 first place. Last year they carried out more LIFEGUARD SUPERVISOR | people and saved 154 lives. Walking, than 3.89M preventative actions – reducing LANGLAND BEACH swimming and bodyboarding were among risk by providing beachgoers with expert the top activities to trigger an incident advice, guidance and direction. and 1,329 incidents required some kind of For more detail on our lifeguarding casualty care (first aid) by our lifeguards. activities last year, download RNLI Lifeguards Report 2019 at Sunset At around 6.20pm the swimmer got RNLI.org/LifeguardsReport2019. caught in a rip, about 150m from shore. saviours ‘She started doing strange swimming Lifeguards training in the surf off a beach in Cornwall On the hottest day of 2019, RNLI strokes. That was all the evidence we lifeguards at Langland Beach decided to needed,’ says Tom. ‘She was being keep watch after their shift had ended. dragged into breaking waves and was For one swimmer, it was a decision that in real trouble.’ He quickly paddled out saved her life. on his rescue board and found the ‘I’ve worked as a lifeguard for woman utterly exhausted and unable 10 years, and this was the busiest and to speak. ‘She had pretty much given up,’ most dangerous I’ve ever seen the beach,’ says Tom. ‘If we hadn’t reached her when says Lifeguard Supervisor Tom John. we did, she wouldn’t have lasted There was a large swell with rip currents much longer.’ pulling people out to sea and, by 5pm, the Lifeguard Dan Person joined them and lifeguards had put up red warning flags. clipped the woman into his rescue tube Most people left the water, but the while Tom supported her. All the while lifesavers spotted a woman entering the powerful waves were breaking over them. sea, outside their flagged zone. With Tom then quickly took the swimmer to 3.89M evening drawing in, the lifeguards needed the safety of the beach and administered , 248 to complete their end-of-day briefings and casualty care. She had swallowed a lot of PREVENTATIVE 29334 ACTIONS BY OUR PEOPLE AIDED BEACHES pack down, but they continued to keep an seawater during her ordeal but, thankfully, LIFEGUARDS BY RNLI LIFEGUARDS PATROLLED IN UK eye on conditions – and the lone swimmer. made a full recovery. (3.4M in 2018) (32,207 in 2018) AND CHANNEL ISLANDS

RNLI ANNUAL REPORT 8 AND ACCOUNTS 2019 OUR IMPACT CASE Water safety STUDY

You can count on the RNLI in an emergency but we’re also here to help prevent you from getting into trouble in the first place.

Our 2019 Respect the Water campaign businesses on how to save people using armed millions of people with our Float to rescue throwlines. We also extended our Live message, helped to build confidence lifejacket locker scheme that encourages on how to float in an emergency, and saw people to use lifejackets aboard their increased relevance among young males. tenders. We worked with the Maritime and 69% of UK and 76% of Irish males, aged Coastguard Agency and Northumberland 16–39, agreed the campaign was relevant to Council to produce products encouraging them and 11 people came forward to say that visitors to check tide times before crossing to 'They told the float message helped save their lives. Holy Island, and Whitby lifeboat crew worked Our Water Safety teams in the with other agencies to deliver safety training community attended events across the UK to local rowing clubs – giving them practical me to float and Ireland – delivering safety advice, running tips on how to deal with cold water shock. lifejacket clinics and training waterside – so I did' Despite not feeling confident in the water, ‘I remembered what the Ruth Osborne learned to surf with a group 62,696 of competent surfers and always felt safe lifeguard said. I realised CHILDREN at sea with her board. One day, in fair it was about relaxing to COMPLETED SWIM weather, Ruth decided she was confident SAFE LESSONS enough to go out alone when, suddenly, save my life.’ (46,588 IN 2018) her leash snapped. RUTH OSBORNE ‘I saw my board bobbing off towards shore – it was my worst nightmare,' she says. face her fears and learn how to swim. 74.5M 'I shouted for help, but nobody heard me. ‘I told myself: “This is something I’m VIEWS OF OUR FLOAT TO Wave after wave came and I got tumbled up going to beat.” That’s been my biggest LIVE SAFETY MESSAGE like I was in a washing machine. I thought: accomplishment – I can swim in the “That’s it, that’s me gone.” But I had spoken sea now. to an RNLI lifeguard 3 days earlier, and ‘If one person finds themselves in a 670,000+ suddenly remembered they told me to float difficult situation and remembers to float, YOUNG PEOPLE IN THE UK – so I did.’ it’s worthwhile,’ she says. ‘You can save AND IRELAND RECEIVED Eventually, Ruth was able to get herself your life by staying relaxed. If you fight WATER SAFETY ADVICE AND Waterside bar staff learn how to rescue people to safety. After her ordeal, she decided to the water, you’ll quickly get exhausted.’ INFORMATION (756,378 IN 2018) with throwlines

9 OUR IMPACT Reshma (8) and Ridoy (9) fishing on floodwaters in Cox's Bazar, Bangladesh. International Neither of them can swim

Drowning is a silent epidemic. The World Health Organization estimates that 320,000 people drown around the world each year – that’s a life lost every other minute.

To help reduce this staggering loss of life, significant funding from the Isle of Man’s the RNLI works in partnership with other International Development Fund and the UK organisations and governments around the Department for International Development world to share our lifesaving experience and (DFID). The RNLI’s Creches for Bangladesh make drowning prevention a global priority. appeal exceeded its funding target and will In 2019 we continued to work with public raise £1.6M, including £809,492 of match health organisations and at-risk communities funding from the UK government through to gather data and evidence on the DFID. Generous donations from RNLI problem, the impact on their lives and the supporters, foundations and the public are effectiveness of solutions. One example was being used to fund creche spaces for young our partnership with The George Institute children in Bangladesh, where drowning for Global Health, India, to understand child claims the lives of 40 children every day. drowning in West Bengal. A space in a community-run creche can We seek donations specifically for our reduce the risk of a child drowning by 82% – international work and, in 2019, secured so they really are lifesavers.

A space in a community-run 12,098 creche can reduce 351,931 CHILDREN LEARNED the risk of a child 350+ PREVENTATIVE SURVIVAL SWIMMING CHILDREN DROWN ACTIONS BY SEASAFE SKILLS AS A RESULT drowning by 82% OF OUR WORK WITH LIFEGUARDS IN GLOBALLY INTERNATIONAL BANGLADESH EVERY DAY (313,053 IN 2018) PARTNERS A still from the RNLI's appeal film: a Bangladeshi woman shares the heartbreak of losing her son to drowning

RNLI ANNUAL REPORT 10 AND ACCOUNTS 2019 OUR IMPACT CASE Fundraising STUDY

With 93% of our income coming from donations and legacies, our charity relies heavily on dedicated volunteers and supporters to raise that money. As overall demand on our services continues to grow, the need to raise funds is greater than ever.

With that in mind, last year we launched We also began securing donors for a from communities, foundations and trusts our biggest ever integrated fundraising project to extend the 25-year life of our rose to £813,000 in 2019. On top of this, campaign, Perfect Storm. Staff and Severn class all-weather lifeboats. Rather a positive result of the publicity around volunteers RNLI-wide played a huge part than building a new fleet from scratch, our international activity saw the Fundraisers from Friends of Whitby Lifeboat feed jam to in making this Christmas appeal take off, a programme of comprehensive refits recruitment of over 14,000 new donors, former Coxswain Mike Russell so they can use the empty raising more than £2M. will give our Severn crews a range of new likely to be worth an ongoing £300,000 pot to collect 5p peices Dedicated fundraisers and supporters equipment, including many important safety each year, together with one-off donations worked together to raise money in their enhancements. The new equipment will totalling £250,000. Our aim is to continue local communities. £13M was generated by be housed in the Severn’s original, robust this growth so that our international Betty's 5p Pots our branch fundraisers alone, while others hulls, making them fit for another 25 years expenditure will be fully funded by donors Our fundraisers don’t always need fancy volunteered in our shops, joined in with high- of lifesaving. who support this work. collection boxes. Betty Frith, former profile events like Mayday and Fish Supper, Last year saw encouraging growth in See page 17 for more on our treasurer of Hertford Fundraising Branch, or organised their own activities. income for our international work. Donations 2019 finances. came up with a novel idea for boosting funds using little jam pots. She got a supply of used ones from her local hotel – cleaned them, removed the labels and slapped on RNLI stickers. Betty’s 5p Pots were born. She realised that 5p pieces are generally unwanted and people don’t feel they are donating too much when they give them away. Plus, you can cram quite a few into a mini jam pot. Sadly, Betty passed away, but her idea lived on through Hertford Branch. Soon, other branches got onboard. What started as a unique fundraiser by one branch has now spread across the UK and Ireland. In July Durham Branch reported that they alone have handled 1.75M 5p coins. With related donations, this has raised more than An RNLI fundraiser is cheered on by crowds as he £101,600 in less than 4 years. tackles the London Marathon in aid of our lifesavers

11 OUR IMPACT CASE WHERE YOUR MONEY GOES STUDY

13p in every £1 donated is used to generate more funds

87p in every £1 funds our lifesaving activities

LIFEBOAT LAUNCHES ARE Gift to the ONLY POSSIBLE DUE TO Burnham-on-Sea's new lifesaving craft Doris Day and OUT OF GIFTS LEFT IN WILLS community Brian was funded by a gift in 6 10 the Will of Brian John Sigley

Burnham-on-Sea lifesavers were delighted Brian on his boat. I know he would to place their new Atlantic 85 lifeboat on have loved to have seen the result of their service in February 2019. The inshore craft legacy. A legacy that will benefit is a step up from their previous Atlantic. It’s the lifesavers Brian so admired, for years longer, with more powerful engines, and to come.’ features other enhancements like radar and radio direction finding. Doris Day and Brian, built at the RNLI’s Inshore Lifeboat Centre, The new lifeboat was possible thanks to the generous legacy of Brian John Sigley. The lifeboat is named in helped Burnham- memory of him and his mother. Brian’s niece Allison Reshad says: ‘Uncle on-Sea crew save Brian was happiest at the helm of a boat the lives of two and was acutely aware of the vital support people in 2019 St Davids crew launch down the provided by the RNLI. Although Doris was slipway onboard their Tamar not a keen sailor, she spent many hours with class lifeboat Norah Wortley

RNLI ANNUAL REPORT 12 AND ACCOUNTS 2019 OUR PLANS

Our plans for the next 5 years are guided by our Six Outcomes.

Achieving these Outcomes will result in our saving more lives while ensuring the safety of our volunteers and securing the future of our charity.

1 2 3 WORKING WITH WE FOCUS ON PARTNERS, WE WE KEEP OUR WHAT WILL SAVE THE OUR SIX OUTCOMES INFLUENCE IMPROVED PEOPLE SAFE MOST LIVES IN OR SAFETY ON AND NEAR THE WATER BESIDE THE WATER

• By giving volunteers and • By ensuring we have the • By focusing on the highest-risk staff the training and tools right people and assets in the locations and activities at home to keep themselves safe. right places. and internationally. • By improving the technology • By upgrading our infrastructure, • By forging and maintaining HOW WE WILL DO THIS? and equipment on our boats asset base and networks. strong partnerships with like- and beaches. • By working with partners to minded organisations. • By providing Trauma Risk understand and prepare for the • By working together to build Management and mental lifesaving challenges of awareness, gather evidence and health first aiders. the future. develop effective interventions.

Measured by reduction in coastal Measured by the effectiveness HOW WILL WE KNOW WE Measured by risk score in the UK and Ireland, of our rescue service, including the ARE SUCCEEDING? incident trends. and data related to our targeted number of lives saved. international activities.

13 OUR PLANS

This section looks at our performance in 2019, lays out our plans for 2020 and signposts some of the key focus areas for the next 5 years to achieve our Six Outcomes.

LOOKING BACK ON 2019 In response to ever-increasing demand, our plans for 2019 mainly focused on the ongoing delivery and improvement of our lifeboat and lifeguarding services, and the associated in- house services that support them. At the same time, we continued our great work in the community and the 4 5 WE RAISE 6 raising of crucial funds through our different OUR PEOPLE THE FUNDS OUR FUTURE IS income streams. We also saw another highly LOVE BEING WE NEED AND SUSTAINABLE successful TV series of Saving Lives at Sea, the PART OF THE RNLI SPEND DONORS’ AND SECURE further effects of our water safety activity MONEY WISELY in the UK and Ireland, and continued growth and impact in our priority work overseas. We delivered a Business Improvement Plan for 2019 that resulted in: • By upscaling our training and • By diversifying our income • By reaching out to • the completion of a 2-year programme providing greater development sources and focusing on younger generations. to stabilise and secure critical elements opportunities for everyone. commercial opportunities. • By maximising the impact of our rescue services and provide greater • By attracting more volunteers • By engaging with new of our Poole campus as a levels of support to our local lifesaving and staff from a variety of audiences and inspiring manufacturing, training and communities. This included improving backgrounds. our existing supporters. heritage centre to support the welfare and wellbeing of our people, • By providing greater support to • With continued rigour in our the whole RNLI. creating simpler routes to getting issues our volunteers and staff. financial discipline, making • By creating a sustainable resolved, helping stations to stay on every penny and cent count. strategy and roadmap to 2050. service, strengthening the way that we provide assurance on critical activities and making roles and responsibilities Measured by the level of clearer for teams and individuals Measured by annual Measured by staff and volunteer organisational risk we are • the improved mitigation of some key donations and our level engagement in our annual surveys. carrying, and the development areas of risk and compliance, particularly of free reserves. of our 2050 roadmap. regarding the safety of our people. This work will continue in 2020

RNLI ANNUAL REPORT 14 AND ACCOUNTS 2019 OUR PLANS

• the modernisation of some of our IT We continued to track our overall within our means has created real focus expenditure and made savings through hardware and the alerting, messaging and performance in 2019 through the Quarterly across the organisation. more effective procurement. We have reporting systems that directly support Performance Report (QPR). At the end of The prioritisation of our spend for 2020 is also refocused the way we spend our the rescue services. each quarter, key performance headlines are primarily based on the delivery of our world- donors' money in areas like international shared with volunteers and staff – providing class rescue services, the protection of our advocacy, water safety and coastal We restructured and refreshed our an opportunity for everyone to pause, reflect future through income generation and the infrastructure projects. Executive Team with the arrival of our new on how we are doing, and keep a firm eye on mitigation of critical risks. As a result of this In 2020, we will continue with our chief executive and two new directors. our mission of saving lives at sea. refocusing on the things that matter most, project work to improve the technology and Consequently, we built further activity into The QPR was updated in 2019 to provide we have decided to remove non-essential systems used by our rescue teams, reduce our our plans during the year. This included greater focus and alignment to our new 2024 activities, reduce other activities that operational risks and improve the safety of providing greater focus on income generation, Outcomes. Positive reports from 2019 QPRs previously formed part of our regular work our people (particularly in known hazardous beginning an important organisational included: improvements in ‘on-time’ and and defer the less critical elements of our activities). We will also see in 2020, the change to give our regional teams a greater ‘in-full’ delivery of stock to support our improvement plans. For example, we have bedding in and early benefits of our new say in local decision making, and targeted rescue services, and an improved staff closed some specific functions and integrated regional management structure which is cost savings activity to get our expenditure in engagement score. We also piloted a new their activities into our day-to-day working. designed to give greater levels of autonomy better shape for 2020. volunteer survey, with the aim of being able We have cut back significant areas of direct to local decision makers. to fully track a volunteer engagement score in MEASURING 2019 PERFORMANCE the future and take action, if necessary. We measure our lifesaving impact against We are working across the RNLI to key performance indicators. These are the develop a culture where the reporting of external changes we regularly track to near misses and hazards becomes the norm understand whether the drowning chain is and, encouragingly, this was an area of being broken. In 2019 we saw: improvement last year. A consequence that • over 80% of people in the UK and Ireland we are seeing from this is an upward trend in consider safety important in and around the number of reported incidents involving an the water. In the case of the UK, the injury in 2019. The knowledge base that we percentage for 2019 exceeded the record build from these reports enables us to make high of 2018 better informed decisions on preventative • an increase in the percentage of people actions to reduce the number of incidents in in target groups who reported having a the future. suitable means of calling for help on them when participating in an activity. OUR FOCUS FOR 2020 Our business plan for 2020 was developed These positive signs were tempered by a dip in in the context of our aim to bring annual observed lifejacket wear, the first since 2013 expenditure into line with our forecast (RNLI and National Coastwatch Institution income by focusing on the activities that annual lifejacket wear observation survey). We matter most. While it has been challenging will continue to monitor this to see whether to reduce our running costs to the required this was a one-off or an emerging trend. level, the principle of keeping our expenditure Lifeguard on a busy Bournemouth beach

15 OUR PLANS

PLANNING FORWARD TO 2024 • Modernising and maintaining our coastal Here are the specific steps we will take in 2020 At the start of 2020 we launched Our Watch: assets. This includes the additional to begin the journey towards our 2024 Outcomes: The RNLI’s Strategic Intent 2020–24, which investment needed to manage the draws on our proud history, considers today’s upcoming peak in renewal work as the 1. Deliver a world-class rescue 3. Strengthen our fundraising capability challenges and sets out our future Vision, high volume of new assets that we service by: to grow income by: Outcomes, goals and high-level plans. The invested in during the 1990s and early • introducing new methods to ensure • developing new technology solutions to document primarily focuses on what we aim 2000s reach their life expectancy that we have the right crew available at support fundraising to achieve over the next 5 years but it also for replacement. the right time • embedding our new community and takes into account the significant factors that • Continuing to modernise our major • modernising our call-out paging system supporter engagement model will impact our future and that we need to be technology platforms to mitigate risks • maintaining our assets to ensure • making our loyal and committed acting upon in the short term. to service provision, data quality and continuity of service supporters feel part of one crew Our Watch pulls together our Purpose, information security. We will also be • becoming clearer on how our services • preparing to celebrate our 200th Vision, Values and Outcomes to explain the investing in new capabilities to begin need to adapt to meet growing and anniversary in 2024. things that we must do in the medium term enabling the RNLI of the future. changing demands and clearly informs our plans and investment • Investing to build a sustainable income • improving the way that we train 4. Ensure that we keep our expenditure programme for the next 5 years. Building on portfolio by diversifying our income our search and rescue volunteers to within our means by: the strategic intent defined in Our Watch, channels; to increase engagement with develop the skills and knowledge they • reviewing and improving our key we aim to have produced our specific 5-year our key customers, including volunteers, need financial processes, policies and Business Plan by the end of 2020. current supporters and future supporters; • designing how we can help our crews to reporting As we drive forward our plan to 2024, we and to enhance our relevance and be safer when using search and rescue • delivering more project work on time will develop our financial plans to ensure that reputation with the general public. equipment. and within budget the RNLI maintains its free reserves within We put our volunteers and supporters at • acquiring new supporters through more the tolerance levels agreed by the Trustees. the heart of everything we do. We will 2. Work in partnership to develop water cost-effective means In doing so, we will focus our expenditure on not take them for granted, not on safety initiatives and advocacy both • embedding our culture of making sure essential activities and drive our near-term Our Watch. domestically and internationally by: that donors’ money is spent wisely. income. However, we have recognised the • developing a water safety plan that need for significant, targeted investment These investments are critical to the focuses on high-risk groups and Through the focus of our quarterly over this period that will begin in 2020 and achievement of our goals for the next 5 years locations performance reviews, we will track the will include: and in creating a sound platform for the • reviewing and strengthening our critical delivery of the 2020 plan and measure the • Creating and sustaining a long-term, longer term. partnerships continued progress towards our Outcomes. consistent resourcing model for our However, the effects of Covid-19 may • aligning water safety activity to our rescue service. This will take into account affect much of this and, while our intention is new regional management structure the growing demand for our service, the to carry on with this work as much as we can, • implementing drowning intervention challenge of changing demographics in plans are continually reviewed and changed plans for children in Bangladesh and certain locations, the actions we need to as circumstances dictate. fishers in Tanzania take to sustain volunteer numbers and • advocating the adoption of a UN simplifying our training and onboarding resolution on drowning prevention. to enable new crew members to be ready for active service sooner without reducing competence levels.

RNLI ANNUAL REPORT 16 AND ACCOUNTS 2019 FINANCIAL REVIEW It is based on the financial statements on • Lifesaving support – as demand for our FOR THE YEAR ENDED 31 DECEMBER 2019 pages 37–41, but we have adjusted it to show services increase our volunteer crew and the net income that is available for charitable lifeguards need more support than ever The challenges we experienced in 2018 continued into 2019 when, expenditure. We have also reflected the actual in training, emergency cover and keeping if we exclude investment gains, financial resources reduced by capital costs, rather than depreciation, in the the lifeboats and equipment going. In a further £19.1M. This was expected as we continue to increase charitable spend. Further analysis on how this 2019, the RNLI spent an additional £4.4M charitable spend to keep up with lifesaving demand, as well as reconciles to the financial statements can be on lifesaving support to help reduce the investing in improvements in paging technology, crew kit and found in note 17 on page 67. The RNLI has burden on our lifesavers. working conditions for our crew. five subsidiary companies and one Charitable Incorporated Organisation. The results of these organisations can be found in note 2 Recognising that a continuing imbalance of We expect these costs to increase in 2020 on page 46. expenditure over income is not sustainable in in order to grow income in line with overall the long term, we took a number of actions expenditure. CHARITABLE SPEND in the latter half of 2019 to focus on reducing This income is essential as we have had Charitable spend increased by £14.5M the extent of this deficit into the future. This to increase our expenditure to support our (9%) compared with 2018, as we continue CHARITABLE included staff redundancies, a rephasing lifesaving volunteers and cope with an ever- to improve the lifeboats, equipment and SPEND of planned projects and an increase in increasing demand for our services. Total working conditions for our crews to improve £181.5M fundraising activity. The steps we are taking charitable spend increased by £14.5M (9%) their safety. The increase in lifeboat rescue to reduce costs and increase income will in 2019, mostly on improvements to our costs of £15.0M was mainly due to: make a real difference in 2020 and beyond, rescue services, but there was also further • Lifeboat fleet and equipment but there is still more to do to ensure that we investment in some IT systems that were out improvements – to ensure crews are meet our objectives. of date. safe and secure, and can rely on the An increase in the net income available While we remain in a healthy financial equipment they use, we increased for charitable spend of £5.6M was position, having absorbed these challenges, investment in maintaining and improving encouraging. This was mainly due to legacy our free reserves reduced by £8.3M in 2019. the lifeboats and stations they work Lifeboats, property and equipment 49% income with an increase of £4.0M, although The RNLI will continue to focus on balancing in, and the protective equipment and Lifeboat service 32% Lifeguard rescue 11% this is still around 5% below 2017 levels. the books in the coming years, through technology they use. Much of this Safety, education and awareness 6% Donations have also increased by £0.9M ongoing expenditure control and increasing investment was to improve our paging International 2% thanks, in part, to campaigns such as Perfect investment in income generation, to remain system infrastructure (£6.0M), with Storm. This was the second year in a row financially well-governed. £1.1M spent on rolling out new crew kit that we have seen such an increase after a from Helly Hansen. We also spent £2.0M succession of falls in donations following our FINANCIAL ANALYSIS in 2019 on the Severn Life Extension opt-in campaign. The analyses in this review have been Programme, which was launched with £14.5M The cost of generating income decreased produced to simplify the financial statements the intention to entirely re-engineer the INCREASE IN by £0.6M in the year as we refocused on key and show how much the RNLI spends on its fleet of Severn class lifeboats to ensure CHARITABLE areas, but there was greater investment in operations each year, how it is funded, and an additional 25 years of service life for SPEND IN 2019 fundraising in the latter half of 2019. the movement in its financial resources. these vessels.

17 FINANCIAL REVIEW

We expanded our international work in line where the problems we experienced in 2018 with our plans in 2019, making an additional in the property market were not as great – INCOME 2019 2018 investment of £0.3M (9%). This included and so estates were cleared in a more timely Total Total investment to support projects with the manner, with some of the backlog from 2018 £M £M World Health Organization and the UN being realised in 2019. aimed at driving political awareness of Just as significantly, donations increased Legacies 126.5 122.5 the significant but hidden issue of global again in 2019 for the second year in Donation 52.4 51.5 drowning. It also included investing more succession. This was after many years within Bangladesh, particularly the Bhasa of decline following the decision to only Trading (net) 5.4 5.5 project, which has involved developing a Charitable trading 3.9 3.8 coordinated regional approach to drowning Investments (net) 1.7 1.9 prevention. It is anticipated that this will lead to drowning reductions of up to 40% Other 1.7 1.4 and thereby encourage the government Total Net Income 191.6 186.6 of Bangladesh, and other donors and institutions, to get more involved. Cost of generating income (25.3) (25.9) Our expenditure on water safety, TOTAL NET Net income available for charitable spend 166.3 160.7 education and awareness reduced by £1.0M INCOME (9%) in 2019. This reduction was mainly on £191.6M water safety work in the regions, where there was a sharper focus on the areas of greater impact, concentrating on five activities in 11 counties. The RNLI continued to update its computer equipment and software in 2019 CHARITABLE SPEND 2019 2018 with a refreshment of lifeboat station Legacies 66% hardware and the roll out of Windows 10, Donation 27% Total Total Trading (net) 3% £M £M costing around £1.7M. This work will reduce Charitable trading 2% the risk of IT security breaches. This increase Investments (net) 1% Lifeboat service 58.6 45.3 is reflected in our support costs, analysed in Other 1% Lifeboats, property and equipment 88.4 86.7 note 5, and is allocated across all activities. Lifeboat rescue 147.0 132.0 INCOME AVAILABLE FOR Lifeguard rescue 20.2 20.0 CHARITABLE SPEND After a challenging 2018, where net income £4M International 3.7 3.4 fell by £9.2M (6%), it was encouraging to see INCREASE IN Water safety, education and awareness 10.6 11.6 a £5.6M (3%) increase in 2019 although we LEGACY have still not recovered to 2017 levels. The Total charitable spend 181.5 167.0 INCOME IN 2019 increase was largely due to legacy income

RNLI ANNUAL REPORT 18 AND ACCOUNTS 2019 FINANCIAL REVIEW

contact supporters who had opted in to £10.1M in 2018. The overall return on the There has been a fall in the unrealised value accounting purposes only. It is a prescribed our communications. The Perfect Storm investment portfolio was 7.3% for the year. of investments of around £13M to the end of basis that allows comparability across the campaign was the first of many fundraising All asset classes were in positive territory, March 2020. sector but does not necessarily reflect the initiatives to rebuild our supporter base and led by equities with a gain of 22.2% in 2019, position negotiated between RNLI Trustees grow income to the levels needed to support responding to easier monetary policy in the PENSIONS and the trustees of the pension scheme from our charitable activities. This work will need US and elsewhere. For the last 3 years, the The RNLI operates a defined contribution the actuarial advice provided. See note 11 on to continue into 2020 and beyond. RNLI has returned an average of 2.9% on its pension scheme for its staff. It also has a page 56 for further details. overall investments. legacy defined benefit pension scheme, which FINANCIAL RESOURCES A new investment strategy was agreed was closed to new entrants from FUNDS ANALYSIS Investments and bank holdings reduced by with our advisers Lane Clark & Peacock in 1 January 2007. On 30 September 2012 it £3.2M in 2019. This was mainly due to our 2019 that more clearly mirrors the needs was also closed to future benefit accrual, FINANCIAL HEALTH increasing charitable spend where, despite of our various reserves and endowments. to help mitigate any future liability. Despite As of 31 December 2019 the RNLI had the increase in income, there was a deficit of This new strategy will continue to have a this the RNLI, like all employers who ran consolidated net assets of £733.8M, primarily £15.2M of charitable expenditure over net similar risk and return profile to the current such schemes, will continue to have ongoing representing fixed assets of £475.7M and income, an increase of £8.9M year on year. portfolio but will cost less to run. We expect liabilities, which are the subject of review investments of £244.6M. Total assets In addition, there was an increase of £4.2M in a reduction in investment management fees – between the pension scheme’s trustees and increased by £24.8M in 2019, which was stock, mainly due to the purchase of lifeboat in the region of £250,000 per annum – as we the RNLI’s own Trustees based on actuarial mainly due to the increase in fixed assets of engines, as well as further payments to the exit, in the main, from absolute return funds. advice for both parties. £14.6M with investment in lifeboats, launch defined benefit pension scheme of £4.7M. The move to the new strategy will start The overall liability of £34.1M on the equipment and computer software and In mitigation, investment gains of £15.9M in earnest in 2020 and is expected to take balance sheet is a reduction of £12.4M from hardware. The reduction in the defined benefit were most welcome. around 18 months to implement, to spread the 2018 position, with an actuarial gain of pension liability of £12.4M was also a major the investment risk over time and to reduce £9.5M in 2019. This is on the FRS102 basis for factor. However, both of these areas have not INVESTMENTS cost in managing liquidity in the most improved the financial health of the organisation In 2019, the RNLI’s investments regained the appropriate way. and the £3.2M reduction in investments and ground lost in 2018, and more, with gains This will be reviewed closely in the light bank balances remains a concern. of £15.9M in comparison with a decline of of the fluctuations caused by Covid-19. There was a significant increase in endowed funds with the establishment of the RNLI Lifesaving Endowment (RLE) in FINANCIAL RESOURCES 2019 2018 2019 and the transfer of funds previously Total Total allocated through restricted and designated £M £M funds. After allowing for the transfer to the Net income less charitable spend (15.2) (6.3) RLE in 2019 of the balance of the restricted funds held for that purpose at the end of Investment gains/(losses) 15.9 (10.1) 2018 (£17.3M), restricted funds effectively Stock increase (4.2) (1.3) increased by £5.3M (5%). The pension reserve reduced by 27% in 2019, due to changing Debtors increase (1.4) (4.2) £3.2M REDUCTION IN FINANCIAL assumptions and also a deficit reduction Creditors increase/(decrease) 1.7 (6.7) RESOURCES IN 2019 payment of £4.7M by the RNLI in 2019. Investment/bank decrease (3.2) (28.6) Overall, there has been a reduction in free reserves of £8.3M.

19 FINANCIAL REVIEW

The RNLI’s Trustees ensure the overall within Our Plans on page 13 demonstrates regard to the next accounting period, the INVESTMENT STRATEGY health of the organisation by managing our an ongoing need for additional income to year ending 31 December 2020, the most free reserves (the sums retained to withstand sustain what we do. significant areas that are likely to affect the PERMANENT ENDOWMENT – any short-term financial risks). At the end of We depend more than ever on the charity’s net assets are the level of income, long-term income generation for 2019 these free reserves stood at £117.5M public’s generosity to support our work in investment returns and an increase in the a specific purpose: and, at 8.5 months’ worth of charitable saving lives at sea and our fundraisers are liabilities of the defined benefit pension • Generates income over the long-term expenditure, they are within the Trustees’ working harder than ever to increase our scheme. Since the year-end, as a result of the with a focus on real capital preservation. requirement of 4–10 months, as described in supporter numbers and income. effects of Covid-19, all these areas have either • Some liquidity required for income and the Reserves Policy in the fund accounting deteriorated or are expected to. Fundraising gains above capital value. section. This range is determined using risk GOING CONCERN income is declining from a reduction in • Some mark-to-market volatility is modelling techniques, in conjunction with The Trustees reviewed the RNLI’s financial commercial and regional activities, such as acceptable. our investment advisers. plans in November 2019, as part of their fundraising events. More significantly, legacy normal annual review, as well as our income for the financial year is expected FINANCIAL PLANS principal financial risks. At that time, they to fall by around £40M, resulting from EXPENDABLE ENDOWMENT (LEF) – We recognise that we continue to operate were satisfied that the RNLI had sufficient falls in the stock and property markets and long-term growth portfolio with modest in an uncertain economic environment resources to continue operating for the next delays in administration. The charity’s listed income requirement: and need significant investment for our 12 months and accounts have been prepared investments have also fallen significantly in • Generates a real return over the long term lifesaving services and our infrastructure. in the knowledge that the RNLI is a financially value and the future remains uncertain, while through both capital growth and income. This is reflected in the plans for 2020, which viable organisation. pension fund liabilities have increased with • Some illiquidity is acceptable. show that there is likely to be a further Since then, the effect of Covid-19 has the change in bond yields. • Some mark-to-market volatility is drawdown on investments and free reserves also been assessed by the Trustees in April As a result, like all other charities, the acceptable. as a result, and even more so because of 2020, reviewing the organisation’s ongoing Trustees have made some difficult decisions the effects of Covid-19. Furthermore, the forecasts and projections to ensure that the to reduce costs. As an emergency service, 5-year programme of investment referenced organisation remains financially viable. With with key worker status, we will ensure that RESTRICTED RESERVES – the lifeboat stations continue to operate short to medium-term reserves held as normal, as much as we can. However, for a specific purpose: FUNDS ANALYSIS 2019 2018 Change Ratio with the reduction in social gathering, we • Generates a real return over the long £M £M % % have decided to postpone the lifeguard term while controlling volatility. programme for the foreseeable future. We • No income requirement. Permanent endowed funds 16.7 11.4 46% 2% have also cut back on lifeboat and lifeboat • Some liquidity needed. Expendable endowed funds 42.3 4.5 840% 6% station construction, we have closed shops, museums and visitor centres and we are Restricted funds 115.7 127.7 (9%) 16% concentrating on business-critical activities FREE RESERVES – Fixed asset funds 475.7 461.1 3% 65% only. As a result, a substantial number of covering the short-term risks of the Designated funds - 25.0 (100%) - staff have been put on furlough and we organisation: will be availing ourselves of Government • High levels of liquidity needed to meet Free reserves 117.5 125.8 (7%) 16% support as much as possible in these short-term cashflow requirements. Pension reserve (34.1) (46.5) (27%) (5%) difficult circumstances. • Cognisant of income across all Even with these measures, the most reserve portfolios. Total funds 733.8 709.0 3% - recent forecasts show a potential cashflow

RNLI ANNUAL REPORT 20 AND ACCOUNTS 2019 FINANCIAL REVIEW

INVESTMENT CRITERIA shortfall of £29M and, with current The RNLI’s Statement of Investment overseas government and non-government investment losses, a fall below the minimum Principles and its Investment Policy were bonds, pooled property funds, infrastructure The Trustees have considered carefully level indicated by the free reserves policy. reviewed in detail in 2019, as a result of the funds, multi-asset funds, cash on deposit and the requirements of the Statement of We are now carrying out work to see how new Investment Strategy, and approved by other financial instruments and investments. Recommended Practice (SORP) and the we can go further, with a further £31M of the Investment Committee and the Trustees. In formulating and reviewing the Charity Commission’s revised guidance note cost savings identified but recognising that The RNLI's investments are held in line RNLI’s investment policies, the Investment CC14 (issued in October 2011) and continue this could start to cut into essential services, with the nature of its reserves, detailed in the Committee has considered a range of to conclude that they do not believe there is as well as reviewing the possibility of an Investment Strategy. This is either to ensure investment options and the need for any listed investment adverse to the purpose emergency appeal for income. The Trustees that donors’ directions are met, in the case of diversification, and has regard to the of the charity (saving lives at sea). will continue to review plans with the RNLI the Permanent Endowment and the Restricted investment policy being pursued by the Executive Team to make the necessary Reserves, or to withstand any short-term Trustees of the RNLI 1983 Contributory In relation to funds where the investment changes to remain within free reserves level financial risks, in the case of the Free Reserves. Pension Scheme (the Scheme) and the manager is permitted to make active over the life of the 5-year plan, in line with The RNLI’s objective (at an aggregate level) RNLI Lifesaving Endowment Fund (LEF), decisions about the selection, retention and the free reserves policy. The charity has a is to maintain and, if possible, enhance the recognising that the RNLI’s overall market realisation of investments, the Investment strong balance sheet, with unrestricted liquid real value of the reserves represented by its exposure is to the aggregate of its own assets Committee expects the investment investments of around £70M, along with investments in line with its 5-year Business and those of the Scheme and the LEF. managers to take account of all financially an endowed fund to use in dire need, so the Plan. The Investment Committee seeks to material considerations (including climate Trustees are of the opinion that the charity meet this overarching objective by maintaining FUNDS POLICY change and other environmental, social will have sufficient resources to meet its an appropriate balance between maximising The RNLI’s Funds Policy is reviewed on an and governance considerations), where liabilities as required. long-term returns and avoiding undue risk and annual basis and is detailed in note 1h on permissible within applicable guidelines and As such, they remain satisfied that the volatility in capital values. page 45 and summarised below. restrictions. The Committee seeks to appoint RNLI can continue operating for the next 12 These objectives are pursued through a managers that have appropriate skills and months and accounts have been prepared in range of strategic investment policies which FUND ACCOUNTING processes to do this, and from time to time the knowledge that the RNLI is a financially involve investing in a broadly diversified spread At the end of the year the RNLI held total reviews how the managers are taking account viable organisation. of assets, covering global equities, UK and funds of £733.8M. The RNLI’s funds are of these issues in practice. All our managers . are signatories to the UN Principles for FINANCIAL POLICIES Responsible Investment. CHANGE IN ACCOUNTING ESTIMATE In 2019, after a depreciation policy review of our operational assets, the RNLI changed the basis of estimation for lifeboat depreciation. This is to recognise that the value of a lifeboat diminishes on an even basis throughout its £115.7M useful life. No adjustment has been made for previous years. RESTRICTED FUNDS £475.7M £117.5M (can only be spent as donor directs) INVESTMENT POLICY FIXED ASSET FUNDS FREE RESERVES The RNLI’s funds (excluding fixed assets) are (including lifeboats and stations) (8.5 months of charitable expenditure) substantially held in investments.

21 FINANCIAL REVIEW held for a variety of purposes, to ensure • Permanent endowed funds (£16.7M) that the organisation can operate as a going – these are funds where the capital sums concern in the future and also fulfil its legal donated are invested and the income obligations. This is summarised as follows: arising may be used for a particular • Fixed asset funds (£475.7M) – these purpose, as agreed with the donor. As make up the bulk of funds held, opposed to the expendable endowed representing the operational assets of funds, the capital sum can only be spent the RNLI, without which it could not in exceptional circumstances with the operate. The vast majority of these are agreement of the Charity Commission. the lifeboats, launching equipment and operational properties, such as lifeboat The remainder of the RNLI’s funds are its stations and lifeguard units. general funds: • Free reserves (£117.5M) – these are • Restricted funds (£115.7M) – these are sums that are freely available for general held under trust law and so can only be use. They are held at a level to withstand used for specific purposes, as agreed with any short-term financial risks, the main the donor. For example, we would have an ones being in investment markets, key appeal for a lifeboat and these donations sources of income (such as legacies) and would be held until we construct that pension funding. Most of these funds lifeboat. There are over 700 of these are held in investments, but they will funds that the RNLI is managing at any also include any unrestricted legacy one time. values accrued, which will take time to • Expendable endowed funds (£42.3M) – be received. The Trustees have set this these are funds where the capital sums at a range of 4–10 months of charitable donated are invested and the income expenditure. At 8.5 months of charitable arising may be used for a particular expenditure, free reserves are at the purpose, as agreed with the donor. upper end of the Trustees’ range, but the The capital sum may be spent at the RNLI is planning to reduce this over the discretion of the Trustees, where next 3 years through essential investment necessary and as agreed with the donor. in our lifeboats and lifeboat stations. These funds represent the RNLI Lifesaving Endowment (Charitable Incorporated • Pension reserve – this represents Organisation), a subsidiary charity that the pension liability that is managed has been established in 2019 to help separately to our free reserves as a long- preserve the RNLI’s lifesaving services term liability. It represents a liability of for the future, providing a steady income £34.1M as valued under FRS102. stream and a capital sum that can be used if the RNLI is ever ‘in extremis’. Skegness crew carry out a search and rescue exercise aboard their Shannon class lifeboat April Grunnill

RNLI ANNUAL REPORT 22 AND ACCOUNTS 2019 for domestic accidental coast fatalities and As they carry legal responsibility, they also GOVERNANCE the impact that we have globally. provide assurance that we are meeting our As an organisation, both domestically and legal and compliance requirements. They The RNLI is a registered charity, controlled by its Trustee Board, internally, we track the number of individuals evaluate the risks we carry and policies and depends on volunteers and staff. assisted, rescued and the number of lives we have in place, with regular review and that the RNLI saves, often in collaboration discussion through the year on these topics. with others. This is reported formally each Read on to find out how the charity is run – and how we work with year in our annual report. As an organisation THE TRUSTEE BOARD COMPOSITION our communities, manage risk, and ensure we are building a we also have a set of metrics, the Quarterly Names of RNLI Trustees who served at any sustainable organisation that’s fit for the future. Performance Report (QPR), that covers time during 2019 and/or were Trustees of the our broader operations and capabilities. charity as at the date of this report, can be These metrics are used by the Executive found on page 69 of this report. Many have Good governance is fundamental to our Charity Governance Codes and regulations Team and senior management to guide the a lifelong interest in the sea and passion for sustained success as a charity. With it, we for England and Wales, Northern Ireland, the organisational priorities and to report back to saving lives at sea. All are volunteers. are best placed to deliver on our lifesaving Republic of Ireland, the Isle of Man, Jersey, the Trustees on our progress in key areas. mission and achieve our objectives. It enables and Guernsey and Alderney. THE COUNCIL all our people to use their skills, along with The Council is a general committee of the our resources, to best effect. It helps us to Leadership RNLI. Their purpose is to advise and assist ensure that we are compliant with relevant Organisational The RNLI is led and governed by the Trustee the Trustees primarily on broad policy and legislation, have managed the risks we are board. The role of the Trustee board is strategy issues facing the charity that are facing, overseen our standard of operations purpose defined in our Royal Charter, Bye-Laws and not specifically addresses by our Advisory and supported a positive culture. We are the charity that saves lives at sea. Governance Regulations. In summary, the Committees. They are expected to act, We review our charity governance, adhering That’s our organisational purpose – the same Trustees set and agree the overall direction, collectively and individually, as ambassadors to the Code of Fundraising Practice and the as our public benefit. We have specific goals strategy and culture of the RNLI. They lead for the charity. They will also be called upon by example and support the chief executive from time to time to provide support and in the daily delivery of our lifesaving plans specialist advice to the Executive Team and The Royal National Lifeboat Institution (RNLI) was founded in 1824. It was granted a and activities, regularly monitoring our its teams on an ad-hoc basis as required Royal Charter of incorporation in 1860, with Supplemental Charters granted in 1932, performance against agreed measures. and requested. 1986 and further amendments in 1998, 2002 and 2011.

The RNLI is a charity registered in England and Wales (209603), Scotland (SC037736), STATEMENT OF PUBLIC BENEFIT the Republic of Ireland (20003326) and the Bailiwick of Jersey (14), Guernsey and Alderney and the Isle of Man. The address of the UK registered office is West Quay The RNLI provides public benefit as a charity Alderney, initiate search and rescue, and rely Road, Poole, Dorset, BH15 1HZ. by saving lives at sea. The governments of heavily on the RNLI’s expertise and resources the UK and Ireland have a statutory duty to save lives at sea in the UK, Ireland, Isle The RNLI also has five wholly owned subsidiaries registered in England and Wales, to provide a maritime search and rescue of Man, Jersey, Guernsey and Alderney. The two of which are currently dormant. Each is managed by a board of directors service. The UK Coastguard, the Irish Coast RNLI works independently of governments (executive and non-executive) to ensure that company and charity law requirements Guard and the requisite Tasking Authorities and relies on donations to meet the cost of are met and business activities are properly managed. in Isle of Man, Jersey, Guernsey and providing this public service.

23 GOVERNANCE

THE EXECUTIVE TEAM donations appropriately, or maintaining the We work hard to ensure that we manage our community or an individual. Transparency is The Executive Team, made up of seven high standards of operations and behaviour money and other assets responsibly and do only one part of building trust – it must be individuals and led by the chief executive, essential to any modern emergency service all we can to maintain our good reputation followed up with clear actions appropriate to are the RNLI’s senior managers. They are and charity. Maintaining our integrity is by being transparent, trustworthy and each situation. For example, we would not responsible for the day-to-day leadership and critical to how the RNLI operates. responsible. share graphic details of a distressing rescue running of the RNLI and the execution of the We aim to uphold our values, standards We continue to hold one of the highest without the consent of those involved, and strategy and policies decided by the Trustee and agreed policies wherever ethical, levels of donor and supporter trust in the then only if it was not distressing for others, Board. Their names are on page 70 and the practical and possible. Our Trustees and charity sector. In last year’s RNLI Awareness even if it meant the charity would gain overall management structure on page 72. Council govern and scrutinise our decision- and Opinion survey report, we compared valuable publicity. Equally, we might choose As a team they are committed not only making to ensure we meet the standards ourselves to four other charities and trust is not to give details of a dispute between to focus on the delivery of our core lifesaving we set ourselves, as well as those set by high: for those who are aware of the RNLI, volunteers or staff while an investigation activities, but also to look forward to ensure regulators such as the Charity Commission 85% feel the RNLI is a trustworthy charity; or appeals process is going on so as not to we remain sustainable as an organisation, and the Fundraising Regulator. We record and 44% strongly agree. For those who have prejudice a later decision, even if those details able to respond to changing trends and positive feedback and complaints, the supported the RNLI either financially or would help to explain the RNLI’s actions external factors. The Executive Team provide latter of which are declared annually to the non-financially, 49% strongly agree we are to others. direction and motivation to our people. Fundraising Regulator (see page 34). a trustworthy charity (source: Ipsos MORI, We are committed to keeping our Mark Dowie succeeded Paul Boissier as RNLI Awareness and Opinion Survey 2019). volunteer and supporter data safe and chief executive in May 2019. AVOIDING CONFLICTS OF INTEREST The RNLI takes its responsibility for we treat information security and data The RNLI operates a Conflict of Interest managing supporters’ donations very governance as key risks (see page 29). MEASURING OUR LEADERSHIP policy for all the Trustees, Council members seriously and applies rigorous financial PERFORMANCE and Trustee Board Committee members. controls to ensure funds are monitored, ELIMINATION OF MODERN SLAVERY Our Trustees review their performance Conflicts of interest are collated annually tracked and go to the right places at the AND HUMAN TRAFFICKING against the Charity Governance Code. and any new declarations of conflict of right time. In doing this, the RNLI strives to The RNLI is committed to ensuring modern They report on this each year in the Annual interest are made and recorded at the start make the supporters’ experience simple and slavery and human trafficking are not present Report and make this document available at of every formal meeting. The Trustees and intuitive, making it easy to donate in a way in its supply chains. We are working with our RNLI.org. The Executive Team undergo an Executive Team review all declarations in line that suits all ages and individuals, whether partners and suppliers to ensure compliance annual performance appraisal and also seek with the Commission disqualification criteria that’s online, by post, over the phone or in with the UK Modern Slavery Act 2015. feedback through the annual engagement guidelines, the accounting requirements the community. Our RNLI Contracts include up-to-date survey and 360-degree feedback, supporting for charities laid down in the Statement of Transparency is also key to building trust clauses on Modern Slavery and Human development. Recommended Practice (SORP) and HMRC and demonstrating integrity, which we aim Trafficking to ensure that our suppliers are ‘fit and proper persons’. to do whenever practical and possible. There aware of their obligations. We undertake There were no externally reportable will be some occasions where there are legal the necessary due diligence in our supply Integrity conflicts of interest in 2019. and ethical circumstances where we either chain tenders. We are continuing to develop Integrity is about doing what is right, openly cannot be transparent because of legislation our processes and procedures to make and honestly. This can be for the charity TRANSPARENCY AND DONOR TRUST (for example data protection) or we need it easier to capture, analyse and manage as a whole, for its people (supporters, As a charity, holding our supporters’ and to make an ethical choice to protect an data from suppliers, covering their ethical, volunteers, staff and those it helps) or for the public’s trust is incredibly important. individual (for example the details we give of environmental and social practices. the public. It can mean using reliable data to The RNLI must demonstrate that it is a distressing rescue or fatality). We consider During 2019 we developed our Supplier put the right lifeboats in the right locations, a responsible and worthy recipient of very carefully what we share and when, Code of Conduct, setting out the RNLI’s ensuring we spend our supporters' generous supporters’ generous donations and time. particularly if it has an impact on a local minimum expectations of suppliers regarding

RNLI ANNUAL REPORT 24 AND ACCOUNTS 2019 GOVERNANCE

business ethics, working conditions and the rules that govern all procurement activity ENERGY AND FUEL We continue to promote waste hierarchy human rights. Through this code, we seek across the RNLI. Additionally, in 2019 we In 2019 we achieved compliance with the thinking, which is to eliminate, reduce, reuse to ensure that all our suppliers share our developed a set of tools and templates to UK Energy Saving Opportunities Scheme and recycle, and recover energy from waste, values and take a zero-tolerance approach cover all aspects of the procurement lifecycle legislation and the Energy Audit Scheme before considering disposal to landfill. to modern slavery. We will be rolling out this and we will be rolling out and embedding legislation in the Republic of Ireland. During 2019 our Retail Team continued to Code during 2020. the use of these tools and templates during During 2019 we began a consolidated identify and action opportunities to remove At the end of March 2019 we published 2020. Throughout this work we have made programme of behaviour change to broaden single-use plastics from our retail products our updated Modern Slavery and Human our values and ethical standards clear. the reach of energy efficiency advice and including their packaging. The packaging Trafficking statement. We followed Home engagement. We achieved a 5.6% energy of some items has already been changed Office guidance, adding a link to the ENVIRONMENT consumption reduction against the 5% and more information provided about how statement to the home page of our website target. This equates to a saving of £95,000. to recycle the packaging used. The future so that it is easily accessible. Additionally, we ENVIRONMENTAL MANAGEMENT The New Construction Team continues to Christmas cards and calendars order has also now update our statement annually. In late 2019 we held the first meeting of the grow our renewables portfolio towards the specified they will have no plastic wrap or RNLI Sustainability Special Interest Group target of 1MW. During 2019, 8kWp (kilowatts glitter in 2020. ETHICS IN THE SUPPLY CHAIN (SIG). The outputs of the group will help us peak) of solar photovoltaic panels were Many of our supporters and our own The RNLI has a clear set of values that refresh our strategic vision and aspirations for installed in Wales, bringing the current total people have shown they care deeply about underpin the strong ethical position expected what a sustainable RNLI will look like from installed to 641kWp. the negative impacts of plastics in the from our supporters, volunteers and staff. 2020 to 2050. This will initially focus on the In 2019 our Solar PV installations delivered environment. Therefore in 2019 it was agreed We have an engineering and supply RNLI aspirations of becoming a zero-carbon, savings of £38,000 and earned £104,800 in that during 2020 the plastic wrap on all our director and a supply chain team, including zero-waste-to-landfill and climate-resilient tariffs. Alongside the solar generation we now members’ magazines will be removed or category managers, who are dedicated to organisation. have 30 heat pumps installed, which have replaced with a non-plastic alternative. developing and improving our supply chain The RNLI is committed to working delivered savings of £48,750. Our Face-to-Face Engagement Team has strategy and processes. towards becoming a zero-carbon organisation During 2020 we plan to continue the roll removed a number of non-recyclable plastic The RNLI has a varied supply chain and (for fuel, electricity and gas) that is also out of renewable systems in all new build and promotional items and replaced them with a broad supplier base that supports the resource efficient and eliminates or reduces major refurbishments. a re-useable bamboo cup and a reduced size construction of our lifeboats, the running of waste wherever it is possible and cost To coincide with our new vehicle fleet Frisbee made from 100% recycled plastic, RNLI College, the range of retail goods sold in effective to do so. contract with Ford, we have installed which can in turn also be recycled. our shops, the marketing and advertising of We are adapting to the impacts of climate telematic systems in some vehicles. This data our fundraising and prevention campaigns as change we are experiencing now. We are also will enable us to gain a better understanding EQUALITY AND FAIRNESS IN RNLI PAY, well as the day-to-day operation of the RNLI. developing a deeper understanding of the of journey patterns and help us to plan our REWARDS AND RECOGNITION We continually ensure that we carry out risks we are likely to experience in the future. transition to an electric fleet. In addition, we these activities in the most ethical way we During 2019 our Safety, Health and are actively seeking opportunities to increase VOLUNTEERS AND PAID STAFF can, by reviewing where we source our goods Environment regional managers have been fuel efficiency or source lower carbon fuels Around 95% of the people who work for the and services, the processes and governance actively promoting good environmental for our other vehicles and vessels. RNLI do so as volunteers, including all the we follow, and the methods of manufacture practice and supporting lifeboat stations members of the Trustee Board, the chairman, and distribution. and lifeguard units with their environmental WASTE and members of the Council. In 2019 we published a Procurement improvements. The RNLI is committed to eliminating and The RNLI only employs paid staff where Policy and How to Buy guide which set out reducing all waste and aspires to ultimately necessary to run and support what is a send zero waste to landfill. complex service in a hazardous environment.

25 GOVERNANCE

There are a number of specific skills needed and pay disclosure statements in readiness Remuneration Committee and any actions common size, taking into account the to keep such an organisation running as safely for the Annual Report and Accounts. to address gender pay gaps forms part of our breadth of responsibility, complexity, as possible and at peak efficiency. The RNLI annual pay review cycle, as well as linking to knowledge, skills and value to the RNLI. has to compete in the labour market and PAY POLICY the RNLI Inclusion and Diversity strategy. • The RNLI encourages and rewards have an appropriate pay policy in place to In setting overall pay levels for our staff, we good performance. Individual pay is ensure we can attract and retain the people take into account the pay practice in other PAY PRINCIPLES reviewed annually and takes into account with the right skills to deliver our lifesaving similarly sized charities and, where necessary, The RNLI adheres to the UK government’s performance, pay position in the range, work. We must offer a suitably competitive private-sector organisations for specialist and statutory national minimum and living wage market conditions, any relevant new level of reward and appropriate recognition technical roles (for example in IT, finance, rates. These are the key principles that apply qualifications or skills developed, and for our people. maritime operations, marine design and to pay at all levels in the RNLI: internal pay relativities. manufacturing, and engineering). • In order to maintain a fair, rational pay • Pay is reviewed consistently using the REMUNERATION COMMITTEE – We aim for a sustainable and consistent structure, the RNLI has a formal grading same approach for all staff, including the COMPOSITION AND RESPONSIBILITIES pay strategy that meets the diverse structure and a single pay range for each Executive Team and the chief executive. The pay policy of the RNLI is approved by the requirements of the RNLI. This includes a pay grade. The grades are based on jobs of While no individual performance bonuses Remuneration Committee. The Remuneration practice that ensures individual pay decisions Committee may seek external legal advice are supported by a rigorous performance as well as recommendations from the chief management process that applies to all executive and the director of people. employees. The Remuneration Committee is a Around 95% of committee of the Trustee Board. It is made GENDER PAY GAP RNLI people are up of four Trustees (including the chairman In our continuing commitment to and the treasurer), one Council member and demonstrate equality and fairness volunteers one independent committee member. in recruitment, pay, promotion and The Committee has delegated authority development, we disclosed the RNLI’s to act on behalf of the Trustee Board, to gender pay gap details. Reporting in line review remuneration policies to meet the with the UK Equality Act 2010 (Gender Pay charity’s aims and our legal responsibilities, Gap Information) Regulations 2017, in 2019 and how these are communicated both the gender pay gap for the RNLI was -3% internally and externally. based on an average hourly rate for men The Committee reviews the remuneration and women. This means our average hourly levels as part of the annual pay review. rate was higher for women than men. The It bears in mind the prevailing market details are published on the government’s conditions and relevant external benchmarks, designated website and RNLI.org. staff retention and satisfaction, the Insights from this report enable us to charity budget, our future plans and past proactively progress a plan to address any performance. It also undertakes an annual gender pay gaps that may have arisen from review of the Executive Team pay in line with recruitment, development, pay review or performance, and considers the RNLI gender other personnel practices. Gender pay gap pay gap, plus the overall remuneration report data will continue to be reviewed by the Tower Crew Member Tim McDonnell in all-weather lifeboat kit

RNLI ANNUAL REPORT 26 AND ACCOUNTS 2019 GOVERNANCE

are paid as typically recognised, our The relationship between risk and FINANCIAL RESPONSIBILITIES regulations. They are also responsible for seasonal fundraising employees are decision-making is an area that we are safeguarding the assets of the charity and the eligible for a small incentive payment. continually striving to improve. Our business The Trustees are responsible for preparing group – and, therefore, for taking reasonable • Annual pay budgets take into account planning draws together risks, opportunities, the Trustees’ Report and the financial steps to prevent and detect fraud and other affordability, economic trends and costs and resourcing requirements to ensure statements in accordance with applicable irregularities. external market pay movement. decisions are robust. We draw together this law and regulations. Charity law requires the Financial statements are published key information when developing our plans Trustees to prepare financial statements for on the charity’s website in accordance SENIOR EXECUTIVE PAY DISCLOSURE to achieve our strategic intent and deliver our each financial year in accordance with United with legislation in the United Kingdom The RNLI acknowledges the operational imperatives. Kingdom Generally Accepted Accounting governing the preparation and dissemination recommendations made following the Practice (United Kingdom Accounting of financial statements. This may vary Report of the Inquiry into Charity Senior TRUSTEE BOARD RESPONSIBILITIES Standards and applicable law). Under charity from legislation in other jurisdictions. The Executive Pay and Guidance for Trustees on law, the Trustees must not approve the maintenance and integrity of the charity’s Setting Remuneration by the UK National In 2019, as part of our normal annual review financial statements unless they are satisfied website is the responsibility of the Trustees. Council for Voluntary Organisations. The of the Governing Regulations, the Trustee that they give a true and fair view of the The Trustees’ responsibility also extends inquiry advocates greater transparency Board reviewed their terms of reference state of affairs of the charity and the group, to the ongoing integrity of the financial and the RNLI recognises and accepts those and the Matters Reserved for the Board and of its, and the group’s, surplus or deficit statements contained therein. recommendations. As a result, the RNLI Statement. At each Board meeting the for that period. In preparing these financial has provided greater clarity, with greater Trustees review the key risks that the charity statements, the Trustees are required to: FINANCIAL OVERSIGHT disclosure on the pay of the Executive Team, faces and the controls in place. • select suitable accounting policies and as well as continuing to disclose the chief The Matters Reserved for the Board then apply them consistently The strategic management of the RNLI executive’s pay in full (see page 47 or visit Statement makes clear the Trustee Board’s • make judgements and estimates that are is entrusted to the Trustee Board and RNLI.org for more). responsibilities and where there are clear reasonable and prudent the execution of that management – the The RNLI is committed to openness and delegated authorities to act on their behalf. • state whether applicable accounting responsibility for implementing strategy and transparency on senior pay and will continue The delegated authorities are discharged standards have been followed, subject the day-to-day management of the RNLI – is to keep this under review. through the committees of the Trustee Board, to any material departures disclosed and the responsibility of the chief executive. The or through the chief executive. The chief explained in the financial statements chief executive delegates authority to his executive is responsible to the Trustee Board • prepare the financial statements on Executive Team and through it to individual Decision-making risk for the day-to-day running of the RNLI and the going-concern basis unless it is budget holders. the execution of the overall RNLI strategy inappropriate to presume that the charity Financial authority is granted by the and control and policies decided by the Trustee Board. will continue to operate. approval of specific budgets and by the The RNLI strives to make quality decisions For a full list of Trustee Board committees, authorisation of individual managers to that are evidence-based and informed turn to page 72. The Trustees are responsible for keeping approve specified levels of expenditure. The by risk. In addition to our broader risk Each Board committee has defined proper accounting records. These must be financial plans form part of these overall management structure, our compliance terms of reference, detailing the delegated sufficient to show and explain the charity’s plans and are made up of a high-level framework plays a vital part by affording authorities where appropriate. We reviewed and the group’s transactions, and disclose business plan; a detailed annual budget, strategic decision-makers an overview of these terms in 2019, to ensure alignment with with reasonable accuracy at any time the which defines specific projects and detailed their compliance obligations and activities. the Matters Reserved for the Board Statement. financial position of the charity and the departmental plans for the next financial For example, we have established a The committees enable experienced volunteer group, and enable them to ensure that the year; and a regular forecast process that register that identifies our regulatory specialists to contribute to key aspects of the financial statements comply with the UK reviews the annual plans and makes changes, compliance requirements. RNLI’s affairs. Charities Act 2011 and applicable accounting as necessary. The Finance Department is also

27 GOVERNANCE involved in any major project or programme planning. In particular, investment strategy Effective risk management is also key The Committee’s main duties are to: work, providing the necessary support to for the RNLI’s and the pension scheme’s to successfully delivering our strategy and • review and challenge the work of the ensure the appropriate financial decisions investments are managed at committee developing the RNLI for a sustainable future. Executive Team and of the internal and are made. level, using professional investment advisers An organisation-wide risk management external auditors to minimise risk and maximise return. In approach is in place. This identifies our key • provide the Trustee Board with an FINANCIAL REPORTING relation to pension liabilities, the RNLI strategic and operational risks and ensures independent and unbiased view of the There are two elements to financial employs a pensions actuary to advise on the they are effectively managed through clear effectiveness and appropriateness of the reporting: assumptions and calculations needed for accountability and escalation when needed. financial reporting, internal controls, risk • Annual Report and Accounts – this is our annual pension negotiations with the Our approach to risk management management, and regulatory compliance produced in line with the responsibilities pension scheme trustees. Income uncertainty follows the principles of BS ISO 31000, the procedures of the RNLI. described previously. is managed through a funding strategy that internationally recognised guidelines on risk • Monthly accounts and statutory returns reviews income pipelines through the four management. We are now making better use INTERNAL AND EXTERNAL – these are produced in line with the main sources of income to ensure targets are of our risk data to help shape and prioritise AUDIT – INDEPENDENCE AND responsibilities described previously met, both short-term and long-term. the RNLI’s future delivery of programmes and RESPONSIBILITIES and with statutory requirements. In managing expenditure risk, the RNLI projects, providing a sharper focus on those The role of internal audit is to provide The monthly accounts, and associated ensures financial rigour through budgetary things that present the greatest threats – and independent assurance to management and reports, are of sufficient detail to control and stringent financial planning to opportunities – to the RNLI. Risk knowledge Trustees that the RNLI’s risk management, allow the Executive to make ongoing ensure that we live within our means. and awareness is consistently used as a governance and internal control processes are financial decisions. The RNLI’s Fundraising Strategy and cornerstone of our decision-making at operating effectively. its free reserves, which are set at a level to all levels. To ensure independence, internal audit FINANCIAL POLICIES withstand any short-term financial risks, The Trustee Board, its committees and reports direct to both the chair of the AND PROCEDURES will also help to mitigate these risks and the Executive Team review the key strategic Audit and Risk Committee and the chief The Trustees are responsible for safeguarding give the RNLI time to change its financial and operational risks on an ongoing basis. executive. The committee approves both the the assets of the charity and the group. This plans accordingly. The current risks around In addition, there are plans in place to appointment and removal of the head of the is enabled through the RNLI’s financial Covid-19 are an example of why we hold manage any major incidents or a crisis, internal audit function. The committee also policies and procedures. Compliance with such free reserves and these will be used to protect the RNLI and the continuity reviews and approves the plan for internal these policies and procedures is mandatory accordingly to ensure the RNLI remains a of operations. audit work. for all employees, honorary officials and going concern. The external auditors review the RNLI’s volunteers of the RNLI and its subsidiary AUDIT AND RISK COMMITTEE – annual financial statements and give companies. Non-compliance may lead to RISK MANAGEMENT COMPOSITION AND RESPONSIBILITIES an opinion on them. The Audit and Risk disciplinary proceedings. The Audit and Risk Committee is a Standing Committee approves the appointment, Risk management is at the heart of the RNLI’s Committee of the Trustee Board and has remuneration, re-appointment and FINANCIAL RISK purpose and strategy – and it’s not just about delegated authority to act on behalf of the removal of the external auditors in relation The most significant financial risks for the reducing the risk of drowning. Through saving Board in relation to the matters set out in to statutory audit arrangements. The RNLI are in investments, pension liabilities lives in dangerous and demanding conditions, its terms of reference, as well as providing committee also reviews the scope of the and income uncertainty. The RNLI reviews our lifesavers, support staff and operational advice, guidance and insight to the Executive planned external work. its financial plans on a regular basis and assets are all exposed to risk. We are fully Team on issues within its scope. The In 2019, the RNLI appointed BDO as its manages these significant risks accordingly, committed to ensuring that these risks are Committee is chaired by a Trustee, who is a new auditors after a rigorous audit tender through income pipelines, budgetary control, managed so that our volunteers and staff are finance professional with significant senior process. The RNLI's 2019 Annual Report and programme management and capital as safe as possible. leadership and management expertise. Accounts will be their first year of audit.

RNLI ANNUAL REPORT 28 AND ACCOUNTS 2019 GOVERNANCE

KEY RISKS TO THE RNLI • safety, health and environment (SHE) is identifying improvement opportunities. Our in the first half of 2020 as a measure of our the first item discussed at the Executive ultimate aim is to have a volunteer safety increasing Information Security maturity. Financial risks are outlined above, under the Team meetings champion at all our sites. Financial oversight section. • a thorough training regime is in place for We have held four SHE Committee SUPPORTER DATA AND all lifeboat crews, lifeguards, volunteers meetings during 2019, each in a different COMMUNICATIONS COVID-19 and employees – supported by an ongoing lifesaving delivery region. Those meetings Throughout 2019 we have continued to The principal uncertainty currently facing programme of assurance activities and include diverse representation from across develop and strengthen our data governance the organisation is the impact of the ongoing targeted awareness campaigns the RNLI including volunteers and staff. They framework and management of any associated global Covid-19 outbreak. The Trustees and • operational policies and procedures provide a platform for an open and honest risks to ensure our supporter communications Executive Team continue to monitor the continue to be developed and improved SHE conversation face-to-face with the are controlled and relevant to the intended outbreak, including UK Government advice, to maintain best practice and compliance Director of Lifesaving Operations. audience. We have continued to work hard and acknowledge that the organisation faces to high standards to achieve compliance and to ensure our a prolonged period of uncertainty. While • we continue to promote the reporting INFORMATION SECURITY marketing communications are lawful, fair and the evolving nature of the situation means and sharing of lessons learned throughout Defending our IT systems from malicious transparent. The introduction of new customer it is not possible to accurately quantify the the RNLI attack as well as protecting the electronic relations management IT has allowed further financial impact, the organisation is in a good • we employ specialist investigators to lead data assets we hold from unauthorised access improvement to ensure our messages are as financial position to help manage this risk. high-level investigations into serious or and misuse is vital to the RNLI. It is woven focused as possible. Steps are being taken, on an ongoing basis, potentially serious incidents, to prevent into our Strategic Outcomes to ensure the We have worked to embed the culture to minimise the impact on the charity’s repeat occurrences. RNLI is sustainable and secure. The treatment of data ownership and further develop our activities and the effect this may have on the of Information Security risk is progressing privacy by design and default approach. organisation’s supporters and beneficiaries. During 2019 there were a number of and is regularly reported to the Strategic Risk From October 2019 we revised the way Infrastructure is in place to allow staff to significant developments in keeping our Management Board. We did not experience that we communicate with our supporters and work remotely and our key priority is to people safe. We continued to develop our any significant or substantial cyber incident the wider public. Our move to an opt-in only ensure, as far as possible, that our lifesaving safety management system and proactive or attack in 2019. approach in 2017 had a bigger impact than we services are still available when needed. safety culture, which demonstrates our Cyber threats and their impact continue anticipated in reducing our ability to attract legal and moral compliance. We addressed unabated, as observed through mainstream new supporters, raise vital funds and engage HEALTH AND SAFETY a number of key risk areas that had been media coverage of numerous high-profile with people. Health and safety continues to be a priority identified through our risk management victims in 2019. In response, we continue to We therefore took the decision to move and we aim to reduce the number of processes and initiated several improvement provide education and awareness sessions, to a Legitimate Interest approach for new incidents that cause harm or ill health to projects which will continue into 2020. regularly review the effectiveness of our supporters, in line with the majority of other volunteers, staff and members of the public. Our team of regional SHE professionals technological defence capabilities, assess major charities and fully in compliance We are fully committed to looking after were actively involved in supporting our emerging and persistent threats, and take with GDPR (General Data Protection our people and anyone who could be affected operational teams, fundraising teams and proactive and remedial actions to keep our Regulation) and PECR (Privacy and Electronic by our actions. To do this: other areas of the organisation, including risk exposure to an acceptable level. We Communications Regulations). We will • our safety management system ensures boat building and new construction activity. have invested in a number of areas including continue to fully respect the particular health and safety is an integral part We continued actively recruiting volunteer modernising our end-user computing assets preferences of our 500,000+ supporters who of how we operate and awareness is safety champions across the organisation and during 2019, and providing a more robust and have opted into RNLI communications in maintained at the highest possible level their numbers are steadily rising. They provide durable operating platform for our stations recent years. valuable support by helping us disseminate and regional offices. We will be completing our messages and are actively involved with pursuit of the Cyber Essentials accreditation

29 GOVERNANCE

PEOPLE RISKS (EMPLOYEES) FUNDRAISING STANDARDS COMPLIANCE WITH FUNDRAISING • To ensure compliance with GDPR, The organisation has low levels of labour AND REGULATION COMPLIANCE LAWS AND REGULATION volunteers attended workshops that turnover at 14.76%, while only 7.36% is due We recognise that fundraising regulation is highlighted requirements and helped to voluntary turnover. The RNLI also benefits CONTACTING OUR SUPPORTERS changing – our Legal Team advises fundraising volunteers understand the impact and from a high level of employee engagement AND SUPERVISING OUR FUNDRAISERS teams of their responsibilities and keeps them their responsibilities, and how as an (at 79% in the 2019 survey which was a 3% The RNLI prides itself on a high standard of updated with regard to any amendments. organisation we can support them. increase to the previous year). However, we ethical fundraising and we continually review The Trustees are satisfied that the RNLI acknowledge that there are particular areas how we contact the public to ask for support. adhered to the appropriate fundraising The RNLI aims to exceed the Fundraising of concern and we proactively review and This ensures that we follow regulations, standards in 2019. The RNLI is a paid-up Regulator’s standards by applying our own manage areas where we feel there are either meet our own high standards and exceed the member of the Fundraising Regulator. additional fundraising standards to ensure existing or emerging risks. public’s expectations. that we are open, honest and respectful We know that wellbeing, in particular, RNLI staff and volunteers carry out the COMPLIANCE WITH RECOGNISED in all cases. We have policies on how and is a key driver of engagement and it was vast majority of the charity’s fundraising STANDARDS when we accept donations. We monitor encouraging to see a positive result of 67% to activities. In 2019 we worked with three Each fundraising team is responsible for our overall fundraising compliance and we the question: ‘I think the organisation cares professional fundraising organisations, three making sure that they are compliant with actively monitor the lessons learned from about my wellbeing’ in the 2019 Engagement payroll giving agencies, and we were part the standards laid out in the Fundraising various regulators, to improve our fundraising survey. We have seen a progressive of one fundraising consortium (Lifelines on Regulator’s Code of Fundraising Practice. practices. It is this approach that has led us to improvement in this question from 2016 Call). Each of these undertakes professional Examples of how we have supported manage and run internal compliance teams to date and are continuing to invest in, and fundraising on our behalf by recruiting payroll volunteer compliance during 2019 include: rather than outsource this activity as some enhance, our activities in this important area. givers. We have a formal agreement with • At cluster meetings with fundraising charities do. We are satisfied that we meet all each of them, with specified standards of branches, training was delivered to the current standards. COMPLIANCE performance, for example in terms of GDPR volunteers on the process of what to do The RNLI is committed to delivering its compliance, in order to protect donors, when offered restricted income donations GRANT-MAKING POLICY service in a safe and compliant way. It has supporters and the organisation from poor and the requirements around this, to an established framework for managing practices. Each is also independently audited. ensure that they are clear in how to Our support of partners is guided by the its compliance risks, with compliance duty In the course of 2019 we had 21 accept donations. requirement that any grant payment is holders in place to assure performance commercial participators. Of these, 16 have • The Inclusion and Diversity Team ran a linked to a legal Deed of Grant negotiated against our external obligations and signed agreements in place. The remaining session in the spring cluster meetings and agreed with the recipient. In addition, internal policies. one has draft agreements, which we are nationally, focusing on inclusion and we require completion of a satisfactory The compliance competency of our working on signing during 2020. diversity and the impact on volunteering due diligence audit of the recipient’s senior staff and volunteers is continually enhanced With the support of our Events Team, we and being open to new volunteering. management, governance controls, financial through ongoing training, which during 2019 held 32 station ceremonies which recognised One example was finding a volunteering capability, safeguarding systems and overall included awareness training in safety, health over £24.2M of funding by a wide range of role for an individual who wanted to capacity to deliver desired results. These and environment (SHE), cyber security, RNLI donors, while celebrating the hard work, help but was unable to be involved in checks include both the recipient and any of and GDPR. dedication and commitment of 25 local the traditional branch set up, so we their associates who are relevant to the work lifeboat communities. We launched the role created a new volunteering role to allow being supported. This includes checking for of Events Business Partner to support the them to support fundraising as a funding absence from government sanction lists of fantastic efforts of our fundraising volunteers researcher for the group. proscribed individuals and/or organisations. and we will expand this work in 2020. The payment of grants is linked to reaching agreed project milestones and

RNLI ANNUAL REPORT 30 AND ACCOUNTS 2019 GOVERNANCE

is controlled under the RNLI’s Standing down as a Trustee in 2019 and Denis Woulfe GENDER BALANCE REFRESHING TRUSTEE BOARD Financial Instructions. The annual grant was elected by the Council in July 2019. At the end of 2019, the Board comprised SKILLS AND KNOWLEDGE provision is sanctioned by the Executive 13 Trustees – 3 women and 10 men. Team under a delegated authority from MAINTAINING INDEPENDENCE We continue to promote and encourage On appointment, new Trustees, Council the Trustees as part of the annual budget As well as having a Conflict of Interest policy diversity across all our governing groups and Advisory Committee members have approval process. Payments require senior for our Trustees and Council, we also have of the charity. The improvement of gender an induction programme and a manual to management and finance department a Gifts and Hospitality policy and register. balance is just one part of our overall aim to familiarise themselves with the work of the approval. All payments can be audited Any gift offered is clearly recorded and any improve inclusion and diversity across our RNLI and their role requirements. Inductions through our financial management system conflicts that this may cause recognised. governing groups. In 2019 we began to work cover their core responsibilities plus a tailored and are available for review by the Executive The RNLI also keeps its independence of through the recommendations from the section, personalised for their individual needs. Team. Each year Trustees are provided with thought as well as action to ensure that it working group, set up to improve inclusion In 2018 we developed a new approach an annual summary of payments made in can demonstrate that any decision or action and diversity. The work is part of our to updating Trustee Board skills, with the the year passed and those planned in the is aligned with the delivery of our charitable wider inclusion and diversity work as introduction of webinars to help brief coming year. aims and there is no personal or individual reported below. Trustees on our latest charity performance. In To maintain high standards of assurance, bias. All Trustee Board decisions are recorded 2019 we held four of these webinars. We also our International Team is continually in a decision log, which is reviewed annually TRUSTEE BOARD MEETINGS continue to brief our Trustees in changes to monitoring best practice and any legislative by the Trustees. Any communications regulation and standards throughout the year changes that might impact the policy. we make internally or externally aim to The Trustee Board meets formally at least as part of the Board meeting papers. demonstrate our independence of thought four times a year. We have a list of standing and action. agenda items covering strategy, performance, TRUSTEE BOARD AND Trustee Board risk and compliance matters. This list is COUNCIL SUCCESSION PLANNING LENGTH OF SERVICE FOR supplemented with other items of relevance The Membership Nomination Committee effectiveness TRUSTEE BOARD MEMBERS to the Trustees' role and responsibilities. (MNC) keeps a log of all the terms of office of Trustee Board members serve a 3-year term While the Executive Team are present all our governing volunteers. This is reviewed APPOINTMENTS TO THE and may be reappointed for up to a further at the Trustee Board meetings, they do not at every MNC meeting and, working with TRUSTEE BOARD two succeeding terms. Following this, after a have any voting rights. Decisions lie with the each governance committee chair, we ensure 3-year break, Trustees can be reappointed. Trustees. The Trustees also have a private we have the right skills, diversity of thinking The Membership Nomination Committee Council members serve a 3-year term meeting with the chief executive prior to and people available, now and in the future, (MNC) reviews the names proposed for the and may be re-elected by the governors for each Board meeting. to enable every governance committee Council and submits its recommendations up to a further two succeeding terms. We We also hold a twice-yearly Trustee Board to effectively deliver on its governance to the chairman of the Trustees for aim to match the skills in the Council to our and Executive Team workshop to discuss responsibilities. consideration by Governors at the Annual strategic goals and business plan needs the strategic opportunities and risks we may General Meeting (AGM). The MNC also as well. face in the future. In 2019 the workshop reviews all appointments to committees. At every meeting, the Membership discussions included safeguarding, diversity, Inclusion and The MNC comprises, the chairman, the Nomination Committee reviews the RNLI outcomes to 2027 and governance deputy chairmen and the chief executive, two composition of the Trustee Board and the improvements. diversity additional Trustees and a Council member. Council, Advisory Committees and future In 2019 we continued to embed the principles Trustees are appointed by our Council vacancies. This means we can plan to refresh and practice of inclusion, in recognition of which, in turn, provides broad advice and the skills, experience and diversity needed to the important role inclusive behaviours play support to the Trustees. Mark Byford stepped ensure sustainable governance in the future. in the growth and retention of diversity.

31 GOVERNANCE

Inclusive behaviour and diversity of Perhaps most joyfully, last year also Commitment to specific actions, to help ENGAGEMENT SURVEY thought continue to be crucial to our future witnessed the first same-sex blessing of create a culture of inclusion, will begin in each AND NETWORK ACTIVITY sustainability, strengthening our connections a crew member and their partner on the of the directorates in 2020. with all the communities we serve and Tobermory lifeboat, which clearly marks an This is the second year in which we have helping us to achieve our lifesaving mission. important milestone on our inclusion journey. RNLI GOVERNANCE – COMMITMENT gathered equality data as part of the staff Important work has begun to upskill senior TO DIVERSIFICATION engagement survey. One of the advantages leaders, to embed inclusion in everything PEOPLE DEVELOPMENT of doing this is the way in which it can be we do and to transform the governance of Following the recommendations of the used to inform the activities of the four the organisation. In 2019 we gave 125 RNLI people face-to- Trustee and Council I&D (inclusion and network groups. By analysing the data in As an organisation, we are becoming face training in Inclusion and Diversity. diversity) group last year, work has now terms of categories relevant to each network, more confident in our stance towards 69 of these were All-weather Lifeboat begun on this 2024 objective: we are able to see what issues are affecting inclusivity, defending the principles behind Centre (ALC) staff, trained in 2019 as part • by 2024 the profile of the RNLI at a the engagement of each network’s target it and its relevance to our work. This was of their induction process. Feedback shows governance level (Trustee, Council, Advisory group, which is helping them to prioritise demonstrated in the press coverage of our that new staff appreciated the emphasis Committee and Executive Team) will be activity for the year ahead. International work last year. on inclusion, the time spent on awareness- significantly more diverse and the culture One outcome of this was the decision However, culture change takes time and raising and on the difference this makes will be demonstrably more inclusive, of the Young Professionals’ Network to we must be prepared for our resolve to be to the general atmosphere of the ALC, reflecting the true reach of the organisation. introduce a reverse mentoring scheme tested along the way. especially in contrast to their previous places to help senior leaders understand the Over the last 5 years, the language and of work. To quote the post-course report: The RNLI is committed to this crucial perspective of young people in the RNLI, as imagery we use to represent our crews and ‘Many people feel this is a workplace where objective. We will achieve it through well as the challenges they face. lifeguards has changed significantly, evidencing they feel respected and valued – very positive proactive recruitment and by creating a The LGBTQ+ network has recently re- an important shift from the stereotypical to views from apprentices and new starters.’ collaborative, transparent, supportive and branded to become the Harbour Network, the more diverse and inclusive. The ALC has devoted time, money and inclusive culture, where advice and challenge a move which aligns it better with other energy to developing all of its staff over a period from all is welcomed. similar networks in organisations across of 2 years, and is now able to see a return on The new governance recruitment process different sectors. In 2019 they piloted a new investment in terms of its culture. This should, has been developed through 2019 with these accreditation for lifeboat stations keen to be in turn, prove beneficial to its functionality. principles at its heart. New role profiles are recognised as LGBTQ-friendly, Brighton being now in place and the new processes began in the first recipient. SENIOR LEADERSHIP DEVELOPMENT late 2019. The Passport to Wellbeing, developed in Reforms will also extend to changing the conjunction with the Disability Network, has All members of the executive and senior way in which meetings are held, where they proved successful and is now being used by leadership teams attended inclusive are held and how they are conducted. This people around the RNLI with health-related leadership workshops last year to enable is to ensure that we are able to welcome a conditions and disabilities. them to prepare for working with the new wider variety of people. leadership behaviours, of which inclusive As part of embedding the new processes, leadership is one. All three sessions achieved the Membership Nominations Committee a high level of engagement from delegates will develop measures to report on progress and most were extremely positive about towards the 2024 objective. Sisters Carly and Rachael incorporating an inclusive leadership McCarthy of Flint lifeboat crew approach as part of their role.

RNLI ANNUAL REPORT 32 AND ACCOUNTS 2019 GOVERNANCE

PRIDE EVENTS deep connection to the organisation. We the satisfaction of the Charity Commission. OUR COMMITMENT TO SAFEGUARDING adopt a model of engagement that can be The primary reason for increased reporting Last year we were represented at 13 Pride categorised into three areas: was the change in approach taken by the The RNLI is committed to looking after the events across our regions, raising awareness • Say – an individual’s likelihood to be an Charity Commission specifically in relation to wellbeing and dignity of absolutely everyone of the RNLI and building support within the advocate for the organisation its definition of safeguarding and the advice to in contact with our charity, whether our LGBTQ community. Our presence achieved • Stay – their commitment to the report historic incidents. beneficiaries, staff or volunteers. 203 new sign-ups and 129 new opt-ins, while organisation and their role Safeguarding is everyone’s business. enabling us to deliver 1,562 Respect the Water • Strive – their motivation for the purpose RAISING CONCERNS INTERNALLY Everybody working or volunteering at the messages and 754 Youth Education messages. and ambitions of the organisation. RNLI should understand it, even those who In total, our attendance at Pride events raised We measure our employees’ levels of There are lots of ways for RNLI people to don’t work directly with children or adults £45,675 underlining the value of attending and engagement on an annual basis through a flag a concern, from starting with a simple at risk. highlighting the need for greater coordinated confidential survey called All Ears. For 2019 conversation with a colleague or chatting to The RNLI has safeguarding responsibilities support for events next year. we had a high response rate (84%) which a line manager, through to using the services across the various jurisdictions in which we presents us with a representative view. of Channel (our employee consultation work, whether around the coast of the UK We were delighted to achieve an overall group), or following a formal procedure, such and Ireland, Isle of Man, Guernsey, Alderney Openness and engagement level of 79% (this figure excludes as the Volunteer Problem Solving Process or and Jersey, or in our international work. The seasonal and casual lifeguards). This is an Whistleblowing Process. RNLI Safeguarding policy and codes accountability increase of 3% from 2018 levels. Supporting It’s really important that all RNLI people of conduct apply across the whole the development of engagement, we are feel that they are able to raise concerns organisation and are supported by a range ENGAGEMENT WITH OUR focusing in 2020 on four areas: keeping our and are aware of the options available of policies and procedures to reduce the risk PEOPLE AND OUR STAKEHOLDERS mission central to our plans, leadership to them. Our values encourage us to be of harm to beneficiaries, supporters, staff teams focusing on delivering our 2020 courageous and operate in an environment and volunteers. We aim to engage and communicate with our business plan, being efficient with our time where we respect each other. Speaking up We recognise that we have additional supporters, donors and the wider public in and efforts, being able to do our jobs with is an important way of doing this. All RNLI responsibilities to safeguard children and all aspects of our lifesaving work. We do this accountability and clarity. staff and volunteers agree to behave by the vulnerable adults. We encourage individuals through face-to-face, traditional and social In 2019, we also piloted a volunteer Staff Code of Conduct or Volunteer Code of to report concerns and we recognise that media channels, and strive to develop good engagement survey to measure the levels of Conduct, and it’s crucial that anyone who there are many barriers to vulnerable people relationships with all the relevant groups, engagement across sample groups from all doesn’t, is held accountable. reporting abuse and we are committed organisations and individuals who have an six regional areas. The response rate was 31% Having clear options for speaking to improving reporting mechanisms. interest in our charitable work, especially at which was a strong result for this initial pilot, up helps us to deal with challenges and When concerns are raised, we study the times of change. with the engagement rate an impressive 88%. increase trust. For example, during 2019, circumstances with a view to understanding As an organisation we recognise the The results will help identify the key drivers of our Whistleblowing Process was used by the causes and how we can take steps to value and importance of having engaged engagement of our volunteers across all types volunteers and staff to raise a number of prevent similar occurrences. Staff can report employees and how this can positively of roles, whether coastal or inland. organisational concerns. These were duly any type of harassment through a number impact our volunteers and supporters. investigated, and improvement actions put in of mechanisms including the independent We know that high levels of engagement SERIOUS INCIDENT REPORTING place for those issues that we were able Whistleblowing Process. influence the performance of our teams, to corroborate. In addition to these reports of behaviour reduce the likelihood of accidents and Eleven serious incidents were reported to the emanating from within the RNLI, we also periods of absences, create a greater level Charity Commission in 2019, compared with receive reports of safeguarding concerns of discretionary effort and develop a two in 2018. These incidents were resolved to raised within the communities in which

33 GOVERNANCE we work. We work closely with partner will cover all complaints received from 1 April people objectives, along with providing digital The Association of Marine Electronic organisations to help ensure that children, 2019 to 31 March 2020. support across the RNLI. and Radio Colleges (AMERC) accredits our vulnerable adults and their families receive In 2019 we started to adopt the Digital Search and Rescue Radio Operator’s course appropriate community support. We COMPLAINTS AND FEEDBACK Code of Conduct for charities. The guide (SARROC) and our Long Range course (LRC). cooperate fully to help seek justice for covers leadership, culture and organisational Our STCW 95 Sea Survival course, survivors of abuse. In a busy year, our Supporter Care Team skills as well as a number of technical Casualty Care course and Approved Engine The RNLI sets high standards with a received over 78,000 calls and made over elements. course (AEC) are accredited by the Maritime view to ensuring those participating in our 14,000 calls. The team continued to receive and Coastguard Agency (MCA). programmes and activities are kept safe. Our feedback related to historical station UK GAMBLING Our Casualty Care course is approved by education programme is delivered to children activity, with much of the feedback later in COMMISSION REGULATION the Anaesthesia Trauma and Critical Care in schools throughout our areas of operation the year relating to the media attention of The RNLI’s quarterly Lifeboat Lottery is (ATACC) group. and is recognised by those schools and local our international work. There were 1,700 licensed by the Gambling Commission under authorities as being core to their safeguarding complaints in total. At the start of 2019 we the Gambling Act 2005. This is to ensure our PENSION QUALITY MARK PLUS arrangements for children, to prevent the risk gave the team resilience training to help gambling activities are safe, fair and crime- The RNLI’s UK Group Personal Pension Plan of harm through drowning. them manage future demand. In 2020 the free. We hold a non-remote and an ancillary continues to meet the Pensions and Lifetime While the RNLI safeguarding systems are team will take on the role of supporting our remote licence and strictly adhere to the Savings Association’s ‘Pension Quality Mark strong, there are rare occasions when these branch volunteers. Licence Conditions and Codes of Practice Plus’ standard. This standard recognises are breached. regulated by the Gambling Commission. that the RNLI’s pension has good levels of Last year we had 17 cases logged where a CERTIFICATIONS AND REGISTRATIONS In 2019, the value of ticket sales for governance and contributions as well as potential risk to young people or vulnerable the Lifeboat Lottery was £2M with £1.7M, regular communications that are easy adults was identified. Three of these cases The RNLI had a number of certifications and on average 85%, being the value returned to understand. were referred to the Charity Commission. A registrations in place during 2019: directly for the purposes of the society. This further three cases were referred following complies with the Gambling Commission’s UK MUSEUM ACCREDITATION the outcomes of investigations which had FUNDRAISING REGULATOR requirements that a society lottery must The RNLI Henry Blogg Museum and RNLI commenced in previous years. We are registered with the Fundraising apply a minimum of 20% of the gross Grace Darling Museum continued to meet Regulator. It demonstrates that we take proceeds of each lottery directly to the the standard for UK Museum Accreditation. OPEN AND ACCOUNTABLE our fundraising extremely seriously. As a purposes of the society. FUNDRAISING STANDARDS registered charity it means we promote best We have procedures and protective CONCLUSION practice, defend the sector and demonstrate measures in place to encourage responsible The RNLI works hard to ensure that everyone our compliance with the law. We follow gambling and to identify and help those with The Annual Report of the Trustees of the RNLI supporting the charity understands how the Regulator's process for reporting our gambling problems. We strictly adhere to the was approved by the Trustees of the RNLI on their money will be used to save lives. This fundraising complaints to them annually in Gambling Commission’s directive on social 7 May 2020 and signed on their behalf by is reflected in the low level of complaints April. Should the need arise, we would also responsibility and problem gambling. See received. When we receive complaints, we follow their complaints escalation process. more at RNLI.org/lottery. respond on a one-to-one basis as quickly as possible and we annually complete DIGITAL CODE OF CONDUCT ACCREDITATION OF TRAINING a complaints return for the Fundraising The remit of the Digital Team is to deliver AND ASSESSMENT STANDARDS Regulator. The Regulator report now runs change and improvements to our web and Our powerboating, motorcruising, VHF and from April to March and, therefore, the next marketing applications/channels, in order shore-based theory courses are accredited by Stuart Popham report will be requested in April 2020 and to support our fundraising, water safety and the Royal Yachting Association (RYA). RNLI Chairman

RNLI ANNUAL REPORT 34 AND ACCOUNTS 2019 CONCLUSIONS RELATED material inconsistencies or apparent material INDEPENDENT TO GOING CONCERN misstatements, we are required to determine We have nothing to report in respect of the whether there is a material misstatement following matters in relation to which the in the financial statements or a material AUDITOR'S REPORT ISAs (UK) require us to report to you where: misstatement of the other information. • the Trustees’ use of the going concern If, based on the work we have performed, TO THE TRUSTEES OF THE ROYAL NATIONAL LIFEBOAT INSTITUTION basis of accounting in the preparation we conclude that there is a material of the financial statements is not misstatement of this other information, we appropriate; or are required to report that fact. • the Trustees have not disclosed in the We have nothing to report in this regard. OPINION • have been prepared in accordance financial statements any identified We have audited the financial statements of with the requirements of the Charities material uncertainties that may cast MATTERS ON WHICH WE ARE the Royal National Lifeboat Institution (‘the Act 2011 and Charities and Trustee significant doubt about the Group or REQUIRED TO REPORT BY EXCEPTION Parent Charity’) and its subsidiaries (‘the Investment (Scotland) Act 2005 and the Parent Charity’s ability to continue We have nothing to report in respect of the Group’) for the year ended 31 December regulation 6 & 8 of the Charities Accounts to adopt the going concern basis of following matters in relation to which the 2019 which comprise the RNLI Consolidated (Scotland) Regulations 2006, as amended accounting for a period of at least 12 Charities Act 2011 and the Charities and and RNLI Statement of Financial Activities, in 2010 and Charities Act (Northern months from the date when the financial Trustee Investment (Scotland) Act 2005 and the RNLI Consolidated and RNLI Balance Ireland) 2008, as amended by the statements are authorised for issue. Charities Act (Northern Ireland) 2008 require Sheets, the RNLI Consolidated Cash Flow Charities Act (Northern Ireland 2013). us to report to you if, in our opinion: Statement and notes to the financial OTHER INFORMATION • the information contained in the financial statements, including a summary of significant BASIS FOR OPINION The other information comprises the statements is inconsistent in any material accounting policies. The financial reporting We conducted our audit in accordance information included in the Annual Report respect with the Trustees’ Annual Report; framework that has been applied in their with International Standards on Auditing and Accounts, other than the financial or preparation is applicable law and United (UK) (ISAs (UK)) and applicable law. Our statements and our auditor’s report thereon. • proper accounting records have not been Kingdom Accounting Standards, including responsibilities under those standards The Trustees are responsible for the other kept by the Parent Charity; or Financial Reporting Standard 102 The Financial are further described in the Auditor’s information. • the Parent Charity financial statements Reporting Standard applicable in the UK and responsibilities for the audit of the financial Our opinion on the financial statements are not in agreement with the accounting Republic of Ireland (United Kingdom Generally statements section of our report. We are does not cover the other information and, records and returns; or Accepted Accounting Practice). independent of the Group and the Parent except to the extent otherwise explicitly • we have not received all the information In our opinion, the financial statements: Charity in accordance with the ethical stated in our report, we do not express any and explanations we require for our audit. • give a true and fair view of the state of requirements relevant to our audit of the form of assurance conclusion thereon. the Group’s and of the Parent Charity’s financial statements in the UK, including In connection with our audit of the RESPONSIBILITIES OF TRUSTEES affairs as at 31 December 2019 and of the the FRC’s Ethical Standard, and we have financial statements, our responsibility is As explained more fully in the Trustee Group’s and Parent Charity’s incoming fulfilled our other ethical responsibilities in to read the other information and, in doing Board Responsibilities section, the Trustees resources and application of resources for accordance with these requirements. We so, consider whether the other information are responsible for the preparation of the the year then ended; believe that the audit evidence we have is materially inconsistent with the financial financial statements and for being satisfied • have been properly prepared in obtained is sufficient and appropriate to statements or our knowledge obtained that they give a true and fair view, and accordance with United Kingdom provide a basis for our opinion. in the audit or otherwise appears to be for such internal control as the Trustees Generally Accepted Accounting Practice; materially misstated. If we identify such determine is necessary to enable the and

35 INDEPENDANT AUDITOR'S REPORT preparation of financial statements that are financial statements. free from material misstatement, whether A further description of our responsibilities due to fraud or error. for the audit of the financial statements is In preparing the financial statements, located at the Financial Reporting Council’s the Trustees are responsible for assessing (FRC’s) website at: the Group’s and the Parent Charity’s ability frc.org.uk/auditorsresponsibilities. This to continue as a going concern, disclosing, description forms part of our auditor’s report. as applicable, matters related to going concern and using the going concern basis of USE OF OUR REPORT accounting unless the Trustees either intend This report is made solely to the charity’s to liquidate the Group or the Parent Charity Trustees, as a body, in accordance with the or to cease operations, or have no realistic Charities Act 2011 and the Charities and alternative but to do so. Trustee Investment (Scotland) Act 2005 and the Charities Act (Northern Ireland) 2008. AUDITOR’S RESPONSIBILITIES Our audit work has been undertaken so that FOR THE AUDIT OF THE FINANCIAL we might state to the charity’s Trustees those STATEMENTS matters we are required to state to them in We have been appointed as auditor under an auditor’s report and for no other purpose. section 144 of the Charities Act 2011 and To the fullest extent permitted by law, we do section 44(1)(c) of the Charities and Trustee not accept or assume responsibility to anyone Investment (Scotland) Act 2005 and section other than the charity and the charity’s 65 of the Charities Act (Northern Ireland) Trustees as a body, for our audit work, for this 2008 and report in accordance with the Acts report, or for the opinions we have formed. and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material BDO LLP misstatement, whether due to fraud or error, Statutory Auditor and to issue an auditor’s report that includes 55 Baker Street our opinion. Reasonable assurance is a high W1U 7EU level of assurance, but is not a guarantee 7 May 2020 that an audit conducted in accordance with ISAs (UK) will always detect a material BDO LLP is eligible for appointment as auditor misstatement when it exists. Misstatements of the charity by virtue of its eligibility for can arise from fraud or error and are appointment as auditor of a company under considered material if, individually or in section 1212 of the Companies Act 2006. the aggregate, they could reasonably be BDO LLP is a limited liability partnership Hoylake shore crew volunteers recover Edmund Hawthorn expected to influence the economic decisions registered in England and Wales (with Micklewood using the Shannon of users taken on the basis of these registered number OC305127). Launch and Recovery System

RNLI ANNUAL REPORT 36 AND ACCOUNTS 2019 FINANCIAL Note Unrestricted funds Restricted Endowed Total Total General Designated Fixed asset funds funds 2019 2018 STATEMENTS funds funds funds £M £M £M £M £M £M £M Income and endowments from: RNLI CONSOLIDATED STATEMENT Legacies 95.5 – – 31.0 – 126.5 122.5 OF FINANCIAL ACTIVITIES Donations 42.1 – – 10.3 – 52.4 51.5 for the year ended 31 December 2019 Trading activities 11.5 – – – – 11.5 11.0 Investments 7c 1.7 – – – 0.5 2.2 2.4 Charitable activities 3.9 – – – – 3.9 3.8 Other income 0.7 – – – – 0.7 1.0 Total income and endowments 155.4 – – 41.3 0.5 197.2 192.2 Expenditure on: Legacies and donations (24.8) – (0.8) – – (25.6) (25.4) Trading activities (6.1) – (0.1) – – (6.2) (5.5) Investment management (0.3) – – (0.2) – (0.5) (0.5) Raising funds (31.2) – (0.9) (0.2) – (32.3) (31.4) Lifeboat service (38.0) – (1.9) (11.0) – (50.9) (44.9) Lifeboats, property and equipment (44.6) – (20.6) (14.1) – (79.3) (80.7) The Statement of Financial Activities Lifeboat rescue (82.6) – (22.5) (25.1) – (130.2) (125.6) includes all gains and losses recognised Lifeguard rescue (19.0) – (1.8) (0.2) – (21.0) (20.2) in the year. Total consolidated income International (3.2) – – (0.5) – (3.7) (3.4) of the RNLI during the year, including Water safety, education and awareness (10.2) – (0.1) (0.3) – (10.6) (11.5) investment gains/(losses), was £213.1M Charitable activities (115.0) – (24.4) (26.1) – (165.5) (160.7) (2018: £182.1M) less resources expended Total expenditure 5 (146.2) – (25.3) (26.3) – (197.8) (192.1) of £197.8M (2018: £192.1M) led to a surplus of £15.3M (2018: deficit of Net gain/(loss) on investments 7b 10.3 – – 5.3 0.3 15.9 (10.1) (£10.0M)). All income, expenditure and Net income/(expenditure) 19.5 – (25.3) 20.3 0.8 15.3 (10.0) resulting net movements are derived Transfers between funds 1h (24.9) (25.0) 39.9 (32.3) 42.3 – – from continuing activities. Income and Actuarial gain/(loss) on pension schemes 9.5 – – – – 9.5 (3.0) expenditure through the Charitable Net movement in funds 4.1 (25.0) 14.6 (12.0) 43.1 24.8 (13.0) Incorporated Organisation (RNLI Reconciliation of funds: Lifesaving Endowment) is treated as an expendable endowment. Funds at 1 January 79.3 25.0 461.1 127.7 15.9 709.0 722.0 Movement in funds 4.1 (25.0) 14.6 (12.0) 43.1 24.8 (13.0) Notes 1 to 18 form part of these accounts. Funds at 31 December 83.4 - 475.7 115.7 59.0 733.8 709.0

37 FINANCIAL STATEMENTS

RNLI CONSOLIDATED BALANCE SHEET Note 2019 2018 as at 31 December 2019 £M £M £M £M Assets employed Fixed assets Intangible assets 6b 16.0 14.5 Tangible assets 6a 459.7 446.6 475.7 461.1 Investments 7 244.6 249.7 Current assets Stocks 8 23.2 19.0 Debtors 9 40.7 39.3 Bank and cash 8.4 6.5 72.3 64.8 Creditors – amounts falling due within 1 year 10 (19.8) (14.5) Net current assets 52.5 50.3 Creditors Amounts falling due after more than 1 year 10 (4.9) (5.6) Defined benefit pension liability 10 (34.1) (46.5) Net assets 733.8 709.0 Funds Endowed funds: Permanent 16.7 11.4 12b Expendable 42.3 4.5 59.0 15.9 Restricted funds 12c 115.7 127.7 Stuart Popham Mark Dowie Unrestricted funds Chairman Chief Executive Fixed asset funds 475.7 461.1 Designated funds 12d – 25.0 Notes 1 to 18 form part of these accounts. The accounts of the RNLI and the General funds: Free reserves 117.5 125.8 consolidated accounts were approved and Pension reserve (34.1) (46.5) authorised for issue by the Trustees on 83.4 79.3 7 May 2020 and signed on their behalf. Total funds 733.8 709.0

RNLI ANNUAL REPORT 38 AND ACCOUNTS 2019 FINANCIAL STATEMENTS

RNLI CONSOLIDATED CASH 2019 2018 FLOW STATEMENT £M £M for the year ended 31 December 2019 Cash flow from operating activities: Net cash provided by operating activities (see note below) 20.0 15.5 Cash flows from investing activities: Purchase of subsidiary undertakings (2.9) – Cash acquired with subsidiary undertaking 0.6 – Investment income 2.2 2.4 Proceeds from the sale of fixed assets 0.4 0.6 Purchase of fixed assets (39.4) (37.0) Purchase of investments (22.8) (34.6) Proceeds from sale of investments 43.8 52.7 Net cash used in investing activities (18.1) (15.9) Change in cash and cash equivalents in the reporting period 1.9 (0.4) Reconciliation of cash flow: No reconciliation of net funds has been Cash and cash equivalents at the beginning of the reporting period 6.5 6.9 prepared as the RNLI holds only cash and Change in cash and cash equivalents in the reporting period 1.9 (0.4) cash equivalents. Cash and cash equivalents at the end of the reporting period 8.4 6.5

2019 2018 £M £M Note to the consolidated cash flow statement Reconciliation of net income to net cash flow from operating activities Net income/(expenditure) for the period (as per the SoFA) 15.3 (10.0) Depreciation and amortisation charges 25.5 30.2 (Gain)/loss on investments (15.9) 10.1 Investment income (2.2) (2.4) Loss/(profit) on disposal of fixed assets 0.6 (0.2) Increase in stock (3.2) (1.3) Decrease/(increase) in debtors 0.1 (4.2) Decrease in creditors (0.2) (6.7) Notes 1 to 18 form part of these accounts. Net cash provided by operating activities 20.0 15.5

39 FINANCIAL STATEMENTS

RNLI STATEMENT OF Note Unrestricted funds Restricted Endowed Total Total FINANCIAL ACTIVITIES† General Designated Fixed asset funds funds 2019 2018 for the year ended 31 December 2019 funds funds funds £M £M £M £M £M £M £M Income and endowments from: Legacies 95.5 – – 31.0 – 126.5 122.5 Donations 42.1 – – 10.3 – 52.4 51.5 Donations from subsidiary companies 6.1 – – – – 6.1 5.5 Investments 7c 1.7 – – – 0.5 2.2 2.4 Charitable activities 3.9 – – – – 3.9 3.8 Other income 0.7 – – – – 0.7 1.0 Total income and endowments 150.0 – – 41.3 0.5 191.8 186.7 Expenditure on: Legacies and donations (24.8) – (0.8) – – (25.6) (25.4) Trading activities – – – – – – (0.4) Investment management (0.3) – – (0.2) – (0.5) (0.5) Raising funds (25.1) – (0.8) (0.2) – (26.1) (26.3) Lifeboat service (38.0) – (1.9) (11.0) – (50.9) (44.9) Lifeboats, property and equipment (45.0) – (20.6) (14.1) – (79.7) (80.7) Lifeboat rescue (83.0) – (22.5) (25.1) – (130.6) (125.6) The Statement of Financial Activities includes Lifeguard rescue (19.0) – (1.8) (0.2) – (21.0) (20.2) all gains and losses recognised in the year. Total charity income of the RNLI during the International (3.2) – – (0.5) – (3.7) (3.4) year, including investment gains/(losses), Water safety, education and awareness (10.2) – (0.1) (0.3) – (10.6) (11.5) was £207.7M (2018: £176.6M) less resources Donation to CIO – (25.0) – (17.3) – (42.3) – expended of £234.3M (2018: £187.0M) Charitable activities (115.4) (25.0) (24.4) (43.4) – (208.2) (160.7) led to a deficit of (£26.6M) (2018: deficit Total expenditure (140.5) (25.0) (25.2) (43.6) – (234.3) (187.0) of (£10.4M)). All income, expenditure and Net gain/(loss) on investments 7b 10.3 – – 5.3 0.3 15.9 (10.1) resulting net movements are derived from Net income/(expenditure) 19.8 (25.0) (25.2) 3.0 0.8 (26.6) (10.4) continuing activities. Transfers between funds 1h (23.5) – 38.5 (15.0) – – – Notes 1 to 18 form part of these accounts. Actuarial gain/(loss) on pension schemes 9.5 – – – – 9.5 (3.0) Net movement in funds 5.8 (25.0) 13.3 (12.0) 0.8 (17.1) (13.4) Reconciliation of funds: †The RNLI statement of financial activities shows the financial performance for the year Funds at 1 January 80.5 25.0 459.5 127.7 15.9 708.6 722.0 of the charity excluding its subsidiaries and Movement in funds 5.8 (25.0) 13.3 (12.0) 0.8 (17.1) (13.4) charitable incorporated organisation. Funds at 31 December 86.3 – 472.8 115.7 16.7 691.5 708.6 RNLI ANNUAL REPORT 40 AND ACCOUNTS 2019 FINANCIAL STATEMENTS

RNLI BALANCE SHEET† Note 2019 2018 as at 31 December 2019 £M £M £M £M

Assets employed Fixed assets Intangible assets 15.8 14.5 Tangible assets 457.0 445.0 472.8 459.5 Investments 7 207.8 252.3 Current assets Stocks 8 20.9 17.4 Debtors 9 41.3 39.4 Bank and cash 6.6 6.5 68.8 63.3 Creditors – amounts falling due within 1 year 10 (18.9) (14.4) Net current assets 49.9 48.9 Creditors Amounts falling due after more than 1 year 10 (4.9) (5.6) Defined benefit pension liability 10 (34.1) (46.5) Net assets 691.5 708.6 Stuart Popham Mark Dowie Funds Chairman Chief Executive Endowed funds: Permanent 16.7 11.4 Expendable - 4.5 Notes 1 to 18 form part of these accounts. 16.7 15.9 The accounts of the RNLI and the Restricted funds 12c 115.7 127.7 consolidated accounts were approved and Unrestricted funds authorised for issue by the Trustees on Fixed asset funds 472.8 459.5 7 May 2020 and signed on their behalf. Designated funds 12d - 25.0

General funds: Free reserves 120.4 127.0 †The RNLI balance sheet shows the Pension reserve (34.1) (46.5) financial position of the charity excluding its subsidiaries and charitable incorporated 86.3 80.5 organisation. Total funds 691.5 708.6

41 FINANCIAL STATEMENTS

Exercise to launch D class lifeboat John Wickens through the surf

RNLI ANNUAL REPORT 42 AND ACCOUNTS 2019 and liquidity of unrestricted investments, totalling around RNLI NOTES TO THE ACCOUNTS £70M, the Trustees believe that, while uncertainty exists, this does not pose a material uncertainty that would cast doubt FOR THE YEAR ENDED 31 DECEMBER 2019 on the charity’s ability to continue as a going concern. The Trustees, therefore, consider it appropriate for the accounts to be prepared on a going-concern basis. The potential effect on 1. RNLI STRUCTURE AND the accounts should be prepared on a going-concern basis. the balance sheet for 2020 is explained further in note 18. ACCOUNTING POLICIES However, the impact of the recent Covid-19 outbreak and In preparing the separate financial statements of the The RNLI was founded in 1824 and was incorporated by Royal its financial effect has meant that the Executive Team and charity, advantage has been taken of the following disclosure Charter granted in 1860, with Supplemental Charters granted Trustees have been reviewing financial plans for the next 12 exemptions available in FRS 102: in 1932, 1986, 2002 and 2011. The RNLI is registered as a months to ensure the RNLI can continue its business-critical • No cash flow statement has been presented for charity in England and Wales (209603), Scotland (SC037736), activities and remain a going concern. the Parent Charity. the Republic of Ireland (20003326), the Bailiwick of Jersey The Government’s decisions to counteract Covid-19 are • Disclosures in respect of the Parent Charity's financial (14), Bailiwick of Guernsey and Alderney, and the Isle of Man. expected to have a significant effect on the RNLI’s financial instruments have not been presented, as equivalent The address of the registered office is West Quay Road, Poole, situation and an estimated £55M reduction in total income. disclosures have been provided in respect of the group Dorset, BH15 1HZ. This is across all areas of income, with much of this from as a whole. legacy income as we see falls in investments, property prices • No disclosure has been given for the aggregate a) Basis of accounting and a delay in the administration of Wills. We also expect remuneration of the key management personnel of the The accounts (financial statements) have been prepared in to see a reduction in fundraising income, through branch parent company as their remuneration is included in the accordance with the Accounting and Reporting by Charities: income and major events, and commercial income as we close totals for the Group as a whole. Statement of Recommended Practice (SORP), Financial shops, branches and the RNLI College. There has also been a Reporting Standard 102 The Financial Reporting Standard significant fall in the value of the RNLI’s investments, with a b) Critical accounting judgements and key sources applicable in the UK and Republic of Ireland (FRS102) and the loss of around £13M by the end of March 2020. of estimation Charities Act 2011. The Trustees have, therefore, decided to carry out a range In the application of the Charity’s accounting policies, Trustees The accounts (financial statements) have been prepared to of cost reductions and project delays to mitigate this impact. are required to make judgements, estimates and assumptions give a true and fair view and have departed from the Charities Some are as a result of the need for social distancing, where about the carrying value of assets and liabilities that are not (Accounts and Reports) Regulations 2008 only to the extent the lifeguard service has been postponed or production apparent from other sources. The estimates and underlying required to provide a true and fair view. This departure has facilities have been closed, but others result from a need to assumptions are based on historical experience and other involved following Accounting and Reporting by Charities, reduce costs where activities have become unaffordable and factors that are considered relevant. Actual results may preparing their accounts in accordance with The Financial we are having to concentrate on business-critical activities differ from these estimates. The estimates and underlying Reporting Standard applicable in the UK and Republic of Ireland only. This includes the furlough of staff who are not involved assumptions are reviewed on an ongoing basis. Revisions to (FRS102) issued on 16 July 2014 rather than the Accounting and in business-critical work, the delay of lifeboat station accounting estimates are recognised in the period to which they Reporting by Charities: Statement of Recommended Practice construction activity and the postponement of water safety relate. The key sources of estimation are summarised below: effective from 1 April 2005, which has since been withdrawn. work. This work is ongoing but could allow savings of around • residuary legacies – a debtor is recognised at the point The RNLI meets the definition of a public benefit entity £45M in 2020. The length of the Covid-19 outbreak and the it can be reliably measured and that the RNLI is entitled under FRS102. Assets and liabilities are initially recognised at measures taken by the Government to contain this are not to the legacy. This recognition point is reached when the historical cost or transaction value unless otherwise stated in known and outside of our control, but we have put processes executors make the first interim distribution. the relevant accounting policy note. in place to manage cashflow on a weekly basis and review • pension liabilities – the charity recognises its liability to its The Trustees reviewed the RNLI’s plans in November 2019 financial stability as matters progress. defined benefit pension scheme, which involves a number and were content that these plans were affordable and that Given the strength of the balance sheet and availability of estimations as disclosed in note 11.

43 NOTES TO THE ACCOUNTS c) Basis of consolidation loss. If there is an indication of possible impairment an or, for legacies not previously recognised, the point that a cash All subsidiary companies, as listed in note 2, have been impairment loss is recognised immediately in the Statement payment is received. For pecuniary legacies, unpaid legacies consolidated on a line-by-line basis. Their objectives of Financial Activities. are accrued into the accounts when they are notified unless contribute to those of the RNLI Group strategy and under the there is any evidence that the legacy is contested or the estate test of control they are deemed to be subsidiaries of the RNLI. e) Pension schemes is impaired. For residuary legacies, a debtor is recognised at The results of the subsidiaries acquired during the year are The RNLI operates a defined benefit pension scheme covering the point that it can be reliably measured and that the RNLI is included in the SOFA from the effective date of acquisition. its employees in the UK and the Republic of Ireland. The entitled to the legacy. This recognition point is reached when The intra-group transactions, balances and unrealised profits scheme was closed to new entrants from 1 January 2007 the executors make the first interim distribution. In the rare are eliminated in full. RNLI (Trading) Limited and CEL Holdings and closed to future benefit accrual on 30 September 2012, cases where legacy property assets are legally transferred Limited were inactive throughout 2019 and have not been although benefits for active members accrued up to 30 to the RNLI, rather than sold during the process to settle consolidated on that basis. September 2012 continue to be subject to any increases in the estate, they are capitalised under tangible fixed assets pensionable pay. at market value. When sold, the profit or loss on disposal is d) Depreciation, amortisation and impairment A defined contribution pension scheme was established for recognised in the SoFA as legacy income rather than profit or Tangible and intangible fixed assets costing more than new staff joining from 1 January 2007 and this was also offered loss on disposal of fixed assets. £10,000 are capitalised and included at cost. as an alternative to members of the defined benefit pension Subscription income is treated as a donation, as there is no Fixed assets are depreciated or amortised over their scheme on its closure. The defined benefit scheme assets are material benefit given, and is accounted for when received. current anticipated lives, which are assessed as follows: held in a separate trustee-administered fund. The cost charged Charitable activity income represents lifeguard income in the Statement of Financial Activities (SoFA) represents which is accounted for when received. Goodwill and Straight line over the current service costs and gains and losses on settlements On receipt, and where material, donations in kind are intellectual property estimated useful life and curtailments calculated in accordance with Accounting recognised on the basis of the value of the gift to the charity, No depreciation is charged Standard FRS102. Further details are shown in note 11. which is the amount the charity would have been willing to Assets under construction on assets in the course of For the defined contribution pension scheme the current pay to obtain services or facilities of equivalent economic construction service costs, gains and losses on settlements and curtailments, benefit on the open market; a corresponding amount is then Freehold lifeboat stations Straight line over 50 years and administrative expenses are charged to expenditure. recognised in expenditure in the period of receipt. and shoreworks Similarly, pension finance costs arising from changes in Other freehold/ Straight line over 50 years/ the net of the interest costs and expected return on assets g) Expenditure leasehold buildings period of lease are charged to expenditure. Actuarial gains and losses are All expenditure is accounted for on an accruals basis and has recognised immediately in the Statement of Financial Activities been classified under headings that aggregate all costs related Lifeboats Straight line over 15–25 years as Actuarial gain/(loss) on pensions scheme. Contributions to the category. Support costs representing expenditure in respect of defined contribution schemes are recognised as on governance, general administration, finance, human Launching equipment Straight line over 10–25 years expenditure as they become payable. resources and information technology have been allocated Office furniture to expenditure, excluding merchandising and investment Straight line over 5–10 years f) Income and depot plant management, on the basis of cost. Incoming resources are included in the SoFA when the RNLI Employee benefits paid on termination include accrued Computer hardware Straight line over 4–10 years is entitled to the income, the receipt is probable and the amounts where the RNLI is demonstrably committed to make and software amount can be quantified with reasonable accuracy. If these these payments. Motor vehicles Straight line over 4 years conditions are not met the income is deferred. The following The cost of volunteer time is not accounted for as this specific policies apply to categories of income: cannot be estimated reliably. Fixed assets are reviewed to determine whether there is Legacy income is recognised either at the point that the any indication that those assets have suffered an impairment future income from an estate meets the recognition category

RNLI ANNUAL REPORT 44 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

h) Fund accounting RNLI will be able to sustain its commitment to provide the k) Stocks The RNLI’s funds fall into the following categories: lifeboat and lifeguard service. The free reserves are set at a Stocks are valued at cost or written-down value. Stocks are level to withstand any short-term financial risks, the main reviewed on a line-item basis at least annually and provision Permanent endowments are capital sums that are donated ones being in the investment markets, pension scheme is made against cost to reduce carrying value to estimated under the restriction that they are invested and that only funding or in key sources of income, such as legacies. realisable value. the income arising is available for expenditure in accordance Based on this value, if free reserves fall outside the with the donors’ directions. These capital sums can only be range of 4–10 months’ charitable expenditure cover, the l) Presentation currency spent in exceptional circumstances with the agreement of the Trustees will review the business plan and make changes, The functional currency of the RNLI and its subsidiaries Charity Commission. as they consider appropriate. These free reserves will is considered to be in pounds sterling because that is the include any unrestricted legacy values accrued. currency of the primary economic environment in which the Expendable endowments are capital sums that are donated charity operates. The consolidated financial statements are under the restriction that they are invested and that only the • Pension reserve, which represents the FRS102 accounting also presented in pounds sterling. income arising is available for expenditure in accordance with deficit for the defined benefit pension scheme as at the the donors' directions. These capital sums may be spent year end. The FRS102 basis is a prescribed accounting m) Exchange rate gains and losses at the discretion of the Trustees of the RNLI Lifesaving basis that requires the discount rate to be the rate on Transactions in foreign currencies are recorded using the rate Endowment, where necessary, and in accordance with the high-quality corporate bonds with a duration equivalent of exchange ruling at the date of the transaction. Monetary donors' directions. to that of the scheme liabilities. Each year, the scheme assets are translated at the rate of exchange ruling at the actuary assesses the financial position of the scheme, balance sheet date. Gains and losses on exchange are Restricted funds are only available for expenditure in allowing for the returns expected to be generated by the included in the SoFA. accordance with the donors' directions. This will include any assets planned to be held by the scheme in the future. restricted legacy value accrued on an estimated basis, in These assets would not typically consist of 100% in n) Cash at bank and short-term deposits accordance with the policy on income detailed in this note. corporate bonds. Further details are shown in note 11. Cash at bank and short-term deposits include cash and short-term highly liquid investments with a short maturity Fixed asset funds represent the assets of the RNLI, the vast Transfers between funds represent the application of of 3 months or less from the date of acquisition or opening majority of which are the lifeboats, launching equipment and restricted and designated funds to capital projects and of the deposit or similar account. All cash and short-term operational properties, such as lifeboat stations and lifeguard transfers to maintain the committed value of such funds. deposits are basic instruments and are measured units. Without them the RNLI could not operate. They are at amortised cost. shown separately to other unrestricted funds due to the size i) Operating leases and importance of these assets to the RNLI. Rentals applicable to operating leases are charged to the o) Financial instruments SoFA over the period in which the cost is incurred on a The charity only has financial assets and financial liabilities Designated funds are set aside at the discretion of the straight-line basis. of a kind that qualify as basic financial instruments. Basic Trustees. There are no such funds at present. financial instruments are initially recognised at transaction j) Investments value and subsequently measured at their settlement value. The above funds are committed funds. Investments for which there is a quoted market value are valued at the bid-price ruling at the balance sheet date. p) Gift Aid donations made to the charity General funds are sums that are freely available for Other investments are valued at their realisable market Donations made by subsidiaries to the Parent Charity are general use. They comprise: value. Investment gains and losses arising during the year are recognised as income in the charity either when paid or at • Free reserves, which are retained to enable the Trustees included in the SoFA. the date when the subsidiary has a legal liability to make the to provide assurance to those at sea, the public and the donation payment if earlier. governments of the UK and Republic of Ireland that the

45 NOTES TO THE ACCOUNTS

2. SUBSIDIARY UNDERTAKINGS Clayton Engineering Limited is a specialist engineering distribution under Gift Aid, to its ultimate charitable parent company which designs and manufactures lifeboat launch and undertaking within 9 months of the year-end date. a) Subsidiary companies recovery equipment. On 7 January 2019, the RNLI acquired 100% of the The RNLI has five wholly owned subsidiaries, RNLI (Trading) The RNLI charges its subsidiaries for the use of any shared ordinary share capital of CEL Holdings Limited and its wholly Limited, RNLI College Limited and RNLI (Sales) Limited, Clayton resources. In 2019 a total of £1.1M (2018: £0.9M) was charged owned subsidiary Clayton Engineering Limited for a cash Engineering Limited and CEL Holdings Limited all of which are to subsidiaries on a cost basis. consideration of £2.95M. The goodwill of £0.2M arising from registered in England and Wales. RNLI (Trading) Limited and The RNLI balance sheet, excluding its subsidiary the acquisition is attributable to the expertise and experience CEL Holdings Limited were non trading throughout 2019. CEL companies, has net assets substantially the same as the of the workforce. The estimated useful life of this goodwill is Holdings Limited was dissolved by voluntary strike-off on 17 consolidated balance sheet. For this reason, the notes to the considered to be 10 years. The following amounts of assets March 2020. accounts show only the consolidated position, except where and liabilities were recognised at the acquisition date. The activities of RNLI College Limited relate directly to the there is a material difference. charitable activities of the RNLI and comprise the training of The subsidiary company boards have decided that all lifeboat crew and lifeguards, although there are external sales of the net profit will be donated to the RNLI and any Fair value of excess facility capacity. profit shown in this note will be donated within 9 months £M RNLI (Sales) Limited is used for non-charitable fundraising of the year-end. Property, plant and equipment 1.5 activities: selling gifts and souvenirs through the RNLI’s No provision for corporation tax has been made on Stock and work in progress 1.0 network of station branches, fundraising branches and guilds subsidiary company profits for the year. This is due to the Trade and other receivables 1.5 and running the Lifeboat Lottery. policy of donating all tax adjusted profits available for Trade and other payables (1.8) Deferred tax (0.1) Cash 0.6 RNLI (Sales) Limited RNLI College Limited Clayton Engineering Limited Total net assets 2.7 Company number 2202240 Company number 7705470 Company number 01274923 Subsidiary company financial information Goodwill 0.2 2019 2018 2019 2018 2019 Total 2.9 £M £M £M £M £M Merchandising and other trading income 9.6 9.1 1.9 1.9 – Internal supplies to the RNLI – – 7.5 7.0 4.8 b) Charitable Incorporated Organisation Cost of sales (2.9) (2.3) (0.8) (0.8) (3.0) On 20 June 2019 the RNLI Lifesaving Endowment (RLE) was Gross profit 6.7 6.8 8.6 8.1 1.8 registered as a charitable incorporated organisation (CIO) Operating costs (2.8) (2.3) (7.2) (6.7) (1.4) with the Charity Commission for England and Wales Net profit 3.9 4.5 1.4 1.4 0.4 (registration number: 1184013). The RLE is a separate legal Amount of Gift Aid to the RNLI (4.3) (4.1) (1.4) (1.4) (0.4) entity, able to hold property in its own name. Investments Retained in subsidiary (0.4) 0.4 – – - of £42.3M were transferred to the RLE in 2019. The purpose Fixed assets 0.4 0.5 0.9 1.1 1.4 of the RLE is the advancement of saving lives at sea by establishing, building and investing an endowment fund. Current assets 2.2 1.9 – 0.1 2.2 There was no income or expenditure in 2019, other than the Current liabilities (0.7) (0.8) (0.6) (0.7) (0.9) RNLI donation from its designated funds. Amounts owed (to)/from RNLI group (0.4) 0.3 0.7 0.5 – Net assets 1.5 1.9 1.0 1.0 2.7

RNLI ANNUAL REPORT 46 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

3. STAFF COSTS The RNLI relies heavily on the work of volunteers to launch of £60,000 (of which members of the Executive Team and crew the lifeboats, support our lifeguard service and who served during the year are shown in brackets): operate the large network of station branches, fundraising branches and groups. We are founded on these volunteers Including Excluding who account for 95% of the RNLI’s people and include severance pay severance pay more than 5,600 volunteer crew members and over 3,500 volunteer shore crew and lifeboat station management 2019 2018 2019 2018 The majority of our volunteers, in number, however, Number Number Number Number are the fundraisers who raise money and help in our shops, £60,000–£69,999 43 (–) 35 (–) 39 (–) 35 (–) museums and offices. Staff costs, both to support these £70,000–£79,999 24 (–) 12 (–) 19 (1) 12 (–) volunteers and to save lives in areas such as lifeguards, are as follows: £80,000–£89,999 5 (–) 4 (1) 2 (–) 4 (1) £90,000–£99,999 3 (1) 5 (2) 2 (1) 5 (2) £100,000–£109,999 7 (5) 4 (4) 5 (5) 4 (4) £110,000–£119,999 5 (4) 1 (1) 4 (4) 1 (1) 2019 2018 £160,000–£169,999 1 (1) 1 (1) – 1 (1) £M £M Total 88 (11) 62 (9) 71 (11) 62 (9) Wages and salaries 73.6 68.0 The Executive Team (ET) including the chief executive are Social security costs 7.2 6.6 regarded as the Charity’s key management personnel under Pension costs 12.2 10.8 FRS102. Aggregate employee benefits of the ET totalled Total 93.0 85.4 £1,509,106 (2018: £1,229,575). Aggregate employee benefits Severance pay 1.9 0.1 comprise salaries, severance pay, company cars, pension costs and employer NI contributions. Individuals fulfilling the role of chief executive (2019: 2 individuals, 2018: 1) received aggregate employee benefits of £225,819 (2018: £195,413). Paul Boissier fulfilled the role of chief executive In 2019 the RNLI went through a restructure which resulted in from 1 January to 15 May, retiring on 30 June, whilst Mark a number of staff redundancies, further details of which can Dowie joined on 1 May. Mark Dowie receives an annual salary be found on page 15. of £160,000. He does not receive any additional allowances, Pension costs include the cost of the pension salary sacrifice nor a company car or car allowance. He has chosen not to scheme, which involves employees sacrificing a proportion receive RNLI employer's pension contributions, but he has of their salary to contribute into their defined contribution chosen to have the employee benefit of salary life assurance pension scheme. cover at one times' salary. Staff costs in 2019 include £1.6M relating to Clayton 84 (2018: 62) employees who received emoluments in Engineering Limited which was not part of the RNLI in 2018. excess of £60,000 (including severance pay) are members The following number of employees received emoluments of defined contribution schemes and received employer Lifeguards on patrol at (excluding employer pension and NI contributions) in excess contributions of £821,102 (2018: £630,738). Boscombe Beach, Dorset

47 NOTES TO THE ACCOUNTS

The average monthly headcount was 2,384 (2018: 2,469). The total average number of employees, calculated on a full-time equivalent (FTE) basis, analysed by function was:

Average including Average excluding At 31 December seasonal staff seasonal staff 2019 2018 2019 2018 2019 2018 Full-time equivalent employees Number Number Number Number Number Number Lifeboat service 352 328 352 328 327 346 Lifeboats, property and equipment 741 664 741 664 749 691 Lifeguard rescue 502 491 51 42 52 43 International 23 23 23 23 20 24 Water safety, education and awareness 95 109 95 109 101 116 Support 283 296 283 296 267 299 Legacies and donations 290 291 265 264 212 264 Trading activities 33 29 33 29 18 30 Total 2,319 2,231 1,843 1,755 1,746 1,813

The RNLI employs seasonal staff in the form of lifeguards and face-to-face fundraisers. Lifeguards are recruited and deployed on beaches when required and have been included above in lifeguard rescue as FTE of 451 (2018: 449). The peak number of lifeguards employed during the summer months was 1,577 (2018: 1,532). Face-to-face fundraisers are also recruited and deployed on beaches during the summer and have been included in legacies and donations as FTE of 25 (2018: 27). Included in 2019 FTE averages are 47 employees (49 at 31 December) of Clayton Engineering Limited.

Dunbar crew exercise at dusk onboard their Trent class lifeboat John Neville Taylor

RNLI ANNUAL REPORT 48 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

4. TRUSTEE, COUNCIL 5. TOTAL RESOURCES EXPENDED AND COMMITTEE COSTS No Trustees, or any persons connected with them, received remuneration. Travelling expenses are reimbursed, if claimed, Staff costs Depreciation/ Other Other allocated Total Total to Trustees and members of the Standing and Advisory amortisation direct costs costs 2019 2018 Committees and the Council. In total, £33,492 (2018: £M £M £M £M £M £M £15,180) was reimbursed to 8 Trustees, 21 Council members and members of Advisory Committees and the Audit and Legacies and donations 11.8 0.6 9.5 3.7 25.6 25.4 Risk Committee (2018: 6 Trustees, 11 Council members and Trading activities 1.5 0.1 4.6 – 6.2 5.5 members of Advisory Committees and the Audit and Risk Investment management – – 0.5 – 0.5 0.5 Committee). No material donations were made during Lifeboat service 18.1 1.5 23.9 7.4 50.9 44.9 the year by these persons. Lifeboats, property and equipment 29.8 20.1 17.8 11.6 79.3 80.7 Lifeguard rescue 13.1 1.6 3.2 3.1 21.0 20.2 International 1.3 – 1.8 0.6 3.7 3.4 Water safety, education and awareness 3.8 – 5.3 1.5 10.6 11.5 Support 15.5 1.6 10.8 (27.9) – – Total 94.9 25.5 77.4 – 197.8 192.1

Support costs are allocated to relevant categories based on their percentage share of overall direct costs:

Governance General Finance Human Information Total Total admin resource technology 2019 2018 £M £M £M £M £M £M £M Legacies and donations 0.1 0.9 0.4 1.0 1.3 3.7 3.8 Lifeboat service 0.1 1.9 0.8 1.9 2.7 7.4 6.7 Lifeboats, property and equipment 0.2 2.9 1.1 2.9 4.5 11.6 12.0 Lifeguard rescue 0.1 0.8 0.3 0.8 1.1 3.1 3.0 International – 0.1 0.1 0.2 0.2 0.6 0.5 Water safety, education and awareness – 0.4 0.2 0.4 0.5 1.5 1.7 Total 0.5 7.0 2.9 7.2 10.3 27.9 27.7

Governance includes audit costs (both internal and external), the AGM and committee costs. Audit fees of £75,000 (2018: £70,630) and tax fees of £5,450 (2018: £10,970) were payable to the external auditor. 2018 expenditure has been revised across expenditure categories for structural changes that have been made in 2019 for comparison purposes.

49 NOTES TO THE ACCOUNTS

The 2018 Legacies and Donations costs have decreased 6. FIXED ASSETS by £3.5M. Much of the variance is due to the reallocation of general IT software maintenance, youth education and a) Tangible assets creative services costs in a more accurate manner than we Assets under Lifeboats Lifeboat Launch and Depots, Computer Total have in previous years. Youth education (£0.8M) has been construction stations and recovery offices and equipment, allocated to Water safety, education and awareness; IT shoreworks equipment training plant and software maintenance (£1.4M) to Information technology; facilities vehicles and creative services (£0.7M) to General admin. There are also £M £M £M £M £M £M £M some small changes due to management restructures that have moved costs to Lifeboat Service. Cost At 1 January 2019 27.1 333.2 294.9 46.8 97.8 66.1 865.9 Acquisitions – – – – 1.4 1.2 2.6 Additions 33.0 1.7 – – – 1.6 36.3 Transfers (29.1) 15.4 5.8 6.2 – 1.7 – Disposals – (3.6) (2.2) (0.7) – (0.4) (6.9) At 31 December 2019 31.0 346.7 298.5 52.3 99.2 70.2 897.9 Amortisation At 1 January 2019 – 234.0 85.1 27.2 21.0 52.0 419.3 Acquisitions – – – – 0.2 0.9 1.1 Charge for the year – 8.1 7.3 3.3 1.7 3.3 23.7 Disposals – (3.5) (1.3) (0.7) – (0.4) (5.9) At 31 December 2019 – 238.6 91.1 29.8 22.9 55.8 438.2 Net book amount At 31 December 2019 31.0 108.1 207.4 22.5 76.3 14.4 459.7 At 31 December 2018 27.1 99.2 209.8 19.6 76.8 14.1 446.6

Property, plant and equipment were recognised on the acquisition of Clayton Engineering Limited (see note 2).

The net book amounts include the following property: Freehold Leasehold Total £M £M £M Lifeboat stations and shoreworks 64.8 142.6 207.4 Depots, offices and training facilities 70.0 6.3 76.3 At 31 December 2019 134.8 148.9 283.7

RNLI ANNUAL REPORT 50 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

b) Intangible assets c) Subsidiary company assets The consolidated schedule of fixed assets includes assets Assets under Computer Goodwill Total owned by subsidiary companies with the following net construction software book amounts: £M £M £M £M Cost 2019 2018 At 1 January 2019 4.4 12.5 – 16.9 £M £M Acquisitions – – 0.2 0.2 Assets under construction – – Additions 3.1 – – 3.1 Lifeboats 0.2 0.2 Transfers (6.9) 6.9 – – Computer equipment, plant and vehicles 1.4 1.4 Disposals – – – – Depots, offices and training facilities 1.1 – At 31 December 2019 0.6 19.4 0.2 20.2 Total 2.7 1.6 Operating costs At 1 January 2019 – 2.4 – 2.4 Charge for the year – 1.8 – 1.8 Disposals – – – – At 31 December 2019 – 4.2 – 4.2 Net book amount At 31 December 2019 0.6 15.2 0.2 16.0 At 31 December 2018 4.4 10.1 – 14.5

Assets under construction comprise software development costs.

Goodwill arose on the acquisition of Clayton Engineering Limited (see note 2).

51 NOTES TO THE ACCOUNTS

d) Financial review analysis The table below shows the asset purchase cost and depreciation analysis by type of expenditure for the financial review (see note 17a).

Asset purchases Depreciation/amortisation charge Allocated Total Allocated Total £M £M £M £M £M £M Expenditure Lifeboat service 8.9 0.7 9.6 1.5 0.4 1.9 Lifeboats, property and equipment 29.0 0.9 29.9 20.1 0.7 20.8 Lifeguard rescue 0.7 0.3 1.0 1.6 0.2 1.8 International – – – – – – Water safety, education and awareness – 0.1 0.1 – 0.1 0.1 Legacies and donations 0.1 0.4 0.5 0.6 0.2 0.8 Trading activities – – – 0.1 – 0.1 Support 2.4 (2.4) – 1.6 (1.6) – Total 41.1 – 41.1 25.5 – 25.5

Asset purchases comprise fixed asset additions and acquisitions.

Crew Member Craig Willard washes down a lifeboat launch vehicle after a training exercise

RNLI ANNUAL REPORT 52 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

7. INVESTMENTS General Restricted Permanent Expendable Total 2019 Total 2018 Consolidated funds funds Endowed Endowed The RNLI held no derivative instruments as at funds Funds 31 December 2019 (2018: none). Several of the pooled £M £M £M £M £M £M investment funds held by the RNLI use derivative a) Investment assets products within their portfolios to reduce market risk in Equities 29.8 – – 17.3 47.1 47.6 line with their investment strategies. Absolute return funds – 76.1 7.6 – 83.7 78.8 All investments are basic financial instruments and are measured at fair values, except for investment in Fixed interest 33.1 31.8 – – 64.9 69.0 subsidiaries, which are held at cost. Property unit trusts 7.9 – 8.5 7.7 24.1 24.4 Deposits and cash 6.9 – 0.6 17.3 24.8 29.9 Market value at 77.7 107.9 16.7 42.3 244.6 249.7 31 December 2019 b) Analysis of movement Market value 116.1 117.7 15.9 – 249.7 277.9 at 1 January 2019 Additions – 5.0 0.5 17.3 22.8 34.6 Transfers (25.0) – – 25.0 – – Disposals (23.7) (20.1) – – (43.8) (52.7) Gains/(losses) on 10.3 5.3 0.3 – 15.9 (10.1) investments Market value at 77.7 107.9 16.7 42.3 244.6 249.7 31 December 2019 Original cost 65.7 107.1 15.7 31.7 220.2 230.3 c) Investment income Equities 0.8 – – – 0.8 0.8 Absolute return funds 0.1 – 0.1 – 0.2 0.2 Fixed interest 0.1 – – – 0.1 0.1 Property unit trusts 0.7 – 0.4 – 1.1 1.3 Deposits and cash – – – – – – Total 1.7 – 0.5 – 2.2 2.4

53 NOTES TO THE ACCOUNTS

General Restricted Permanent Investment Total 2019 Total 2018 RNLI funds funds Endowed in funds subsidiaries £M £M £M £M £M £M a) Investment assets Equities 29.8 – – – 29.8 47.6 Unlisted companies – – – 5.5 5.5 2.6 Absolute return funds – 76.1 7.6 – 83.7 78.8 Fixed interest 33.1 31.8 – – 64.9 69.0 Property unit trusts 7.9 – 8.5 – 16.4 24.4 Deposits and cash 6.9 – 0.6 – 7.5 29.9 Market value at 31 December 2019 77.7 107.9 16.7 5.5 207.8 252.3 b) Analysis of movement Market value at 1 January 2019 116.1 117.7 15.9 2.6 252.3 280.5 Additions – 5.0 0.5 2.9 8.4 34.6 Disposals (48.7) (20.1) – – (68.8) (52.7) Gains/(losses) on investments 10.3 5.3 0.3 – 15.9 (10.1) Market value at 31 December 2019 77.7 107.9 16.7 5.5 207.8 252.3 Original cost 65.7 107.1 15.7 5.5 194.0 232.9 c) Investment income Equities 0.8 – – – 0.8 0.8 Absolute return funds 0.1 – 0.1 – 0.2 0.2 Fixed interest 0.1 – – – 0.1 0.1 Property unit trusts 0.7 – 0.4 – 1.1 1.3 Deposits and cash – – – – – – Total 1.7 – 0.5 – 2.2 2.4

Investment in subsidiaries comprises RNLI (Sales) Limited £1.5M (2018: £1.5M), RNLI College Limited £1.0M (2018: £1.0M) and Clayton Engineering Limited £2.9M (2018: £nil).

Included in disposals is £42.3M used to establish the RNLI Lifesaving Endowment, a Charitable Incorporated Organisation, Seahouses Shannon class the assets of which are held separately from those of the RNLI. lifeboat John and Elizabeth Allan at sea during trials

RNLI ANNUAL REPORT 54 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

8. STOCKS 10. CREDITORS

Consolidated RNLI Consolidated RNLI

2019 2018 2019 2018 2019 2018 2019 2018 £M £M £M £M £M £M £M £M Operational stock 21.2 17.3 20.9 17.4 Amounts falling due within 1 year Gifts and souvenirs 2.0 1.7 – – Trade creditors 12.9 7.1 11.8 6.9 Total 23.2 19.0 20.9 17.4 Other creditors 0.2 0.1 0.2 – Inter-company creditor – – 0.7 0.8 PAYE taxes and social security 1.9 1.7 1.8 1.7 Pension creditor 1.1 1.0 1.1 0.9 9. DEBTORS Dependants’ pensions liability 0.3 0.3 0.3 0.3 Accruals 3.4 4.3 3.0 3.8 Consolidated RNLI Total 19.8 14.5 18.9 14.4 Amounts falling due after more than 1 year 2019 2018 2019 2018 £M £M £M £M Dependants’ pensions liability 4.9 5.6 4.9 5.6 Defined benefit pension liability 34.1 46.5 34.1 46.5 Legacies receivable 32.0 32.8 32.0 32.8 Total 39.0 52.1 39.0 52.1 Inter-company – – 0.4 – debtors Trade and other 1.2 0.5 1.2 0.4 debtors VAT and Gift Aid 4.3 3.3 4.8 3.3 recoverable Prepayments and 3.2 2.7 2.9 2.9 accrued income Total 40.7 39.3 41.3 39.4

A proportion of legacies receivable may be received after more than 1 year, but this figure cannot be determined with any accuracy due to the inherent uncertainty in the timing of legacy income receipt. The estimated value of legacies notified but neither received nor included in income is £72.3M (2018: £85.6M). All debtors are basic financial instruments measured at amortised cost, with the exception of VAT of £3.9M (2018: £2.9M) and prepayments of £1.9M (2018: £1.4M).

55 NOTES TO THE ACCOUNTS

11. PENSION SCHEMES membership details and a full actuarial valuation of the allowing for an expected rate of return on all assets at the dependants’ pensions as at 31 December 2019 on the basis discount rate, based on bond yields. These assets would The RNLI provides a number of pension schemes for required by FRS102. not typically consist of 100% in corporate bonds. its employees: On this basis, the FRS102 accounting deficit for the The RNLI paid deficit reduction contributions of defined benefit pension scheme as at 31 December 2019 was £4.7M in 2019 (2018: £9.4M) and a further £4.7M is expected • The RNLI 1983 Contributory Pension Scheme, a defined £34.1M (2018: £46.5M) and £5.2M (2018: £5.9M) for the to be contributed to the defined benefit scheme in the benefit scheme, was closed to new entrants from dependants’ pensions. The FRS102 basis is a prescribed basis 2020 financial year. 1 January 2007 and closed to future benefit accrual on that requires the discount rate to be the rate of return on The main financial assumptions used as at 30 September 2012, although benefits for active members high-quality corporate bonds with a duration equivalent to 31 December 2019 and the corresponding assumptions accrued up to 30 September 2012 continue to be subject that of the liabilities. at 31 December 2018 and 31 December 2017 were: to any increases in pensionable pay. Each year, the scheme actuary assesses the financial position of the scheme for the formal actuarial valuation, • The RNLI UK Group Personal Pension Plan is the main scheme for UK employees who joined the RNLI from 31/12/2019 31/12/2018 31/12/2017 1 January 2007. It is a contract-based defined contribution % pa % pa % pa scheme. Member retirement benefits are linked to the investment performance of contributions made. Discount rate† 2.1 2.7 2.4 Rate of increase in salaries 3.9 4.1 4.1 • The RNLI RoI Group Fusion Pension Plan is the main Rate of increase in pensions in payment‡: scheme for Republic of Ireland employees who joined Post-1988 GMP increases (CPI capped at 3%) CPI-0.4% CPI-0.4% CPI-0.4% the RNLI from 1 January 2012. It is a contract-based Pre-1997 increases (RPI capped at 4%) RPI-0.5% RPI-0.5% RPI-0.5% defined contribution scheme. Member retirement benefits are linked to the investment performance of 1997–2005 increases (RPI capped at 4%, CPI 5%) RPI-0.5% RPI-0.4% RPI-0.4% contributions made. 2005–2007 increases (RPI capped at 5%, CPI 2.5%) RPI-0.5% RPI-0.5% RPI-0.5% Post-2007 increases (CPI capped at 2.5%) CPI-0.6% CPI-0.6% CPI-0.6% In 2019, the RNLI paid contributions of £12.2M (2018: Rate of revaluation on deferred pensions RPI-0.5% RPI-0.5% RPI-0.5% £10.8M) in respect of members of the defined contribution Rate of retail price inflation (RPI)† 3.4 3.6 3.6 pension schemes. Rate of consumer price inflation (CPI) RPI-0.8% RPI-1.0% RPI-1.0% Details of the defined benefit scheme, produced in accordance with the requirements of section 28 of The †Represents the weighted average discount rate and inflation rate of the respective curves at the scheme’s average duration. Financial Reporting Standard 102 (FRS102), are disclosed ‡In excess of the Guaranteed Minimum Pension (GMP) element. Life expectancy is based on the assumptions provided by our below and cover both the RNLI 1983 Contributory qualified independent actuaries. Pension Scheme and the payments to certain dependants. Dependants’ pensions are paid by the RNLI to dependants of Assumes life expectancy on retirement age 65 of: Years Years Years former crew members who lost their lives on lifeboat service. Retiring today – males 21.5 21.9 22.1 The figures in this note have been calculated by a qualified independent actuary based on a full actuarial valuation of the Retiring today – females 23.9 24.3 24.4 pension scheme as at 31 December 2017, rolled forward to Retiring in 15 years – males 22.6 23.1 23.3 31 December 2019 using summarised cash flow and Retiring in 15 years – females 25.2 25.7 25.8

RNLI ANNUAL REPORT 56 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

11. PENSION SCHEMES 31/12/2019 31/12/2018 31/12/2017 (CONTINUED) Expected rate Market value Expected rate Market value Expected rate Market value of return of assets of return of assets of return of assets % pa £M % pa £M % pa £M The assets in the pension scheme and the expected rates Equities 49.1 40.6 89.4 of return at 31 December 2019 and the corresponding Fixed interest 24.7 24.2 21.8 amounts and assumptions at 31 December 2018 and Private credit 24.3 20.7 17.2 31 December 2017 were: Absolute return funds 47.6 42.4 70.7 Cash and net current assets 1.5 44.1 2.3 Liability-driven investment 162.1 113.6 128.5 Real estate/property 37.5 33.6 – Total 2.1 346.8 2.7 319.2 2.4 329.9

a) The following amounts were measured in accordance with the requirements of FRS102:

2019 2018 Pension Dependants’ Total Pension Dependants’ Total scheme pensions scheme pensions £M £M £M £M £M £M Total fair market value of assets 346.8 – 346.8 319.2 – 319.2 Present value of liabilities (380.9) (5.2) (386.1) (365.7) (5.9) (371.6) Net pension liability (34.1) (5.2) (39.3) (46.5) (5.9) (52.4)

b) Changes in the present value of the defined benefit obligation are as follows:

2019 2018 Pension Dependants’ Total Pension Dependants’ Total scheme pensions scheme pensions £M £M £M £M £M £M Opening defined benefit obligation 365.7 5.9 371.6 380.4 6.6 387.0 Interest cost 9.7 0.2 9.9 9.0 0.2 9.2 Actuarial loss/(gain) 16.5 (0.6) 15.9 (13.5) (0.6) (14.1) Benefits paid (11.0) (0.3) (11.3) (10.9) (0.3) (11.2) Scheme change/past service cost – – – 0.7 – 0.7 Defined benefit obligation at the year end 380.9 5.2 386.1 365.7 5.9 371.6

57 NOTES TO THE ACCOUNTS

c) Changes in the fair value of the scheme assets are as follows:

2019 2018 Pension Dependants’ Total Pension Dependants’ Total scheme pensions scheme pensions £M £M £M £M £M £M Opening fair value of scheme assets 319.2 – 319.2 329.9 – 329.9 Interest income on scheme assets 8.5 – 8.5 7.9 – 7.9 Return on scheme assets greater than/(less than) discount rate 25.4 – 25.4 (17.1) – (17.1) Employer contributions 4.7 – 4.7 9.4 – 9.4 Benefits paid (11.0) – (11.0) (10.9) – (10.9) Fair value of scheme assets at the year end 346.8 – 346.8 319.2 – 319.2

The actual return on scheme assets was a gain of £33.9M (2018: a loss of £9.2M).

d) The amounts included within the Statement of Financial Activities are as follows:

2019 2018 Pension Dependants’ Total Pension Dependants’ Total scheme pensions scheme pensions £M £M £M £M £M £M Net interest on net defined benefit liability 1.2 0.2 1.4 1.1 0.2 1.3 Past service cost** – – – 0.7 – 0.7 Total amount charged within net income/(expenditure) 1.2 0.2 1.4 1.8 0.2 2.0 Actuarial loss/(gain) 16.5 (0.6) 15.9 (13.5) (0.6) (14.1) Return on scheme assets (greater than)/less than discount rate (25.4) – (25.4) 17.1 – 17.1 Remeasurement effects recognised in overall funds movement (8.9) (0.6) (9.5) 3.6 (0.6) 3.0 Total amount (credited)/charged to the Statement of Financial Activities (7.7) (0.4) (8.1) 5.4 (0.4) 5.0

** Estimated cost of GMP equalisation.

RNLI ANNUAL REPORT 58 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

12. TOTAL FUNDS ANALYSIS

a) Consolidated balance sheet – analysis of funds 2019 summary

Unrestricted funds Restricted Endowed Total 2019 General Designated Fixed asset funds funds funds funds funds £M £M £M £M £M £M Fixed assets – – 475.7 – – 475.7 Investments 77.7 – – 107.9 59.0 244.6 Net current assets 44.7 – – 7.8 – 52.5 Creditors falling due after more than 1 year (4.9) – – – – (4.9) Defined benefit pension liability (34.1) – – – – (34.1) Total 83.4 – 475.7 115.7 59.0 733.8

b) Endowed funds – analysis of major funds

Opening Income Expenditure Investment Transfers Closing balance 2019 2019 gains 2019 2019 balance Name of fund Purpose of fund 2019 2019 £M £M £M £M £M £M The advancement of RNLI Lifesaving saving lives at sea by Endowment – establishing, building – – – – 42.3 42.3 expendable and investing an endowment fund. Roy Barker – All-weather lifeboat 10.2 0.3 – 0.2 – 10.7 permanent construction Dungeness Lifeboat Morrell – permanent 4.5 0.2 – 0.1 – 4.8 Station – general Other endowed 1.2 – – – – 1.2 funds – permanent Total endowed 15.9 0.5 – 0.3 42.3 59.0 funds Boatbuilder and Crew Member Stirling The Morrell legacy was previously disclosed as an expendable endowment fund. Management has reviewed the supporting Taylor works on a Shannon class lifeboat at the RNLI's All-weather documentation in the year and concluded that it would be more accurately disclosed as a permanent endowment fund. Lifeboat Centre A transfer of £4.5M was made in the year to reflect this.

59 NOTES TO THE ACCOUNTS

c) Restricted funds – analysis of Opening Income and Expenditure Transfers Closing major funds balance investment 2019 2019 balance Unrestricted funds Restricted Endowed Total 2019 There are over 700 of these restricted funds Donor name Purpose of fund 2019 gains 2019 funds funds General Designated Fixed asset and so this table only details those funds 2019 funds funds funds with a balance of more than £2M. The £M £M £M £M £M £M £M £M £M £M £M transfers represent either a transfer to a Richard W Colton All-weather lifeboat construction 5.1 0.3 – – 5.4 Fixed assets – – 475.7 – – 475.7 fixed asset fund, where the fund is for the Various donors Jersey Lifeboat Station – general 6.0 0.2 – – 6.2 Investments 77.7 – – 107.9 59.0 244.6 purpose of asset construction and the asset Gough Ritchie Trust Isle of Man lifeboat stations – general 4.3 0.4 – – 4.7 is completed, or a previous year adjustment, Net current assets 44.7 – – 7.8 – 52.5 Various donors Guernsey Lifeboat Station – general 4.1 0.4 – – 4.5 Creditors falling due after more than 1 year (4.9) – – – – (4.9) where a donor or legator has added a restriction at a later date or the restriction Various donors Sheringham Lifeboat Station – general 2.7 0.2 – – 2.9 Defined benefit pension liability (34.1) – – – – (34.1) has been subject to negotiation. Various donors Morecambe Lifeboat Station – general 2.5 0.2 – – 2.7 Total 83.4 – 475.7 115.7 59.0 733.8 Anonymous legacy All-weather lifeboat construction – Anstruther 2.1 0.1 – – 2.2 John and Elizabeth Allan Memorial Trust All-weather lifeboat construction – Seahouses 2.0 – – (2.0) – Roy Barker All-weather lifeboat construction 1.9 0.7 – – 2.6 RNLI subsidiary companies To set up a lifesaving endowment 11.0 – – (11.0) – Elizabeth O'Kelly Fund To be used in Ireland – Endowment fund 5.5 – – (5.5) – Various donors Wells-next-the-Sea shoreworks 2.1 0.2 – – 2.3 Anonymous Donor All-weather lifeboat – Peel 2.2 – – (2.2) – Mrs H Hastings All-weather lifeboat – Eyemouth 2.2 – – (2.2) – Various donors Lifeboatman’s benevolent fund 1.7 0.6 – – 2.3 Various donors Bridlington Lifeboat Station – general 0.3 2.2 – – 2.5 Anonymous legacy Great Yarmouth and Gorleston – 2.2 – – 2.2 Various donors Invergordon – 2.1 – – 2.1 Anonymous legacy Pwllheli 1.0 1.0 – – 2.0 Mrs D J Pearce All-weather lifeboat construction 2.0 – – – 2.0 Total of major funds 58.7 10.8 – (22.9) 46.6 Other restricted funds 69.0 35.8 (26.3) (9.4) 69.1 Total restricted funds 127.7 46.6 (26.3) (32.3) 115.7

RNLI ANNUAL REPORT 60 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

12. TOTAL FUNDS ANALYSIS (CONTINUED)

d) Designated funds – analysis of funds Opening Income and Expenditure Transfers Closing Designated funds are set aside at the balance investment 2019 2019 balance discretion of the Trustees. There are no such Name of fund Purpose of fund 2019 gains 2019 funds at present. The designation in 2018 2019 was for the RNLI Lifesaving Endowment Fund £M £M £M £M £M To help create an endowment fund to preserve and this was transferred to Endowed Funds RNLI Lifesaving Endowment 25.0 – – (25.0) – in 2019. the future of the RNLI’s lifesaving activities Total designated funds 25.0 – – (25.0) –

13. LINKED CHARITIES Opening Income Expenditure Transfers Closing balance 2019 2019 2019 balance The RNLI has a number of linked charities Donor name Purpose of fund that have been established over the years, 2019 2019 separated from the charity for a variety of £M £M £M £M £M reasons, due to the nature of the fund or Lifeboatmen’s Benevolent Fund Grants for distressed past or present crew members 1.7 0.6 – – 2.3 the original terms of the legacy or donation. Langstreth Culliford Trust Grants for dependants of lifesavers 0.2 – – – 0.2 All of the funds of these charities are John William Archer All-weather lifeboat construction 0.1 – – – 0.1 consolidated into the RNLI’s accounts. Charles Carr Ashley Lifeboat maintenance and support for crew 0.1 – – – 0.1 The current active linked charities with a funds balance over £0.1M as at 31 December Anna Stock Memorial Fund Col Stock lifeboat – construction and maintenance 0.1 – – – 0.1 2019 are as follows: Total of linked charities 2.2 0.6 – – 2.8

While there has been movement on all the above funds in the year, where it is less than £0.1M it has not been disclosed. The RNLI also has other active linked charities with a fund balance of less than £0.1M, or nil, and these are as follows: John Jones Rowland, Isabella Irwin, James Michael Bower Gift, Mrs Alice Gottwald, Ralph Glister Award, Louise George Anderson Dunn, Mrs Sadie Hughes, William Stephen Mellis, Gorleston Volunteer Lifeboat Association, Miss Maud Smith’s Reward, Salcombe Lifeboat Disaster Relief Fund, Miss Annie Gertrude Shayler, The George Nichol Charity for the RNLI, and RNLI Heritage Collection Trust 2012.

61 NOTES TO THE ACCOUNTS

14. CAPITAL COMMITMENTS 16. 2018 COMPARATIVES – FUNDS AND LINKED CHARITIES

At 31 December 2019, capital commitments amounted to a) Consolidated statement of financial activities – previous year comparatives £20.1M (2018: £16.7M). Unrestricted funds Restricted Endowed Total funds funds 2018 15. OPERATING LEASE COMMITMENTS General Designated Fixed asset funds funds funds £M £M £M £M £M £M Income and endowments from: Land and buildings Other Legacies 90.0 – – 32.5 – 122.5 2019 2018 2019 2018 Donations 39.6 – – 11.9 – 51.5 £M £M £M £M Trading activities 11.0 – – – – 11.0 At 31 December Investments 1.8 – – 0.6 – 2.4 the ageing of total Charitable activities 3.8 – – – – 3.8 minimum lease Other income 1.0 – – – – 1.0 payments was as Total income and endowments 147.2 – – 45.0 – 192.2 follows: Expenditure on: Payable within 1 year 1.1 1.2 1.0 0.8 Legacies and donations (24.7) – (0.6) (0.1) – (25.4) Payable between 1 2.7 3.0 0.9 0.5 and 5 years Trading activities (5.4) – (0.1) – – (5.5) Payable after more Investment management (0.3) – – (0.2) – (0.5) 5.3 4.9 – – than 5 years Raising funds (30.4) – (0.7) (0.3) – (31.4) Total 9.1 9.1 1.9 1.3 Lifeboat service (30.9) – (1.9) (12.1) – (44.9) Lifeboats, property and equipment (40.0) – (25.5) (15.2) – (80.7) Certain property leases are for an indefinite period, with the Lifeboat rescue (70.9) – (27.4) (27.3) – (125.6) RNLI having the right to early termination should the need Lifeguard rescue (18.0) – (1.9) (0.3) – (20.2) arise. In calculating minimum lease payments for these leases, International (2.9) – – (0.5) – (3.4) a 50-year duration has been assumed. Water safety, education and awareness (11.4) – (0.1) – – (11.5) Charitable activities (103.2) – (29.4) (28.1) – (160.7) Total expenditure (133.6) – (30.1) (28.4) – (192.1) Net loss on investments (5.2) – – (4.4) (0.5) (10.1) Net income/(expenditure) 8.4 – (30.1) 12.2 (0.5) (10.0) Transfers between funds 25.4 (54.3) 36.5 (7.6) – – Actuarial loss on pension schemes (3.0) – – – – (3.0) Net movement in funds 30.8 (54.3) 6.4 4.6 (0.5) (13.0)

RNLI ANNUAL REPORT 62 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

16. 2018 COMPARATIVES – FUNDS AND LINKED CHARITIES (CONTINUED)

b) RNLI statement of financial activities - previous year comparatives

Unrestricted funds Restricted Endowed Total General Designated Fixed asset funds funds 2018 funds funds funds £M £M £M £M £M £M Income and endowments from: Legacies 90.0 – – 32.5 – 122.5 Donations 39.6 – – 11.9 – 51.5 Donations from subsidiary companies – – – 5.5 – 5.5 Investments 1.8 – – 0.6 – 2.4 Charitable activities 3.8 – – – – 3.8 Other income 1.0 – – – – 1.0 Total income and endowments 136.2 – – 50.5 – 186.7 Expenditure on: Legacies and donations (24.7) – (0.6) (0.1) – (25.4) Trading activities (0.4) – – – – (0.4) Investment management (0.3) – – (0.2) – (0.5) Raising funds (25.4) – (0.6) (0.3) – (26.3) Lifeboat service (30.9) – (1.9) (12.1) – (44.9) Lifeboats, property and equipment (40.0) – (25.5) (15.2) – (80.7) Lifeboat rescue (70.9) – (27.4) (27.3) – (125.6) Lifeguard rescue (18.0) – (1.9) (0.3) – (20.2) International (2.9) – – (0.5) – (3.4) Safety, education and awareness (11.4) – (0.1) – – (11.5) Charitable activities (103.2) – (29.4) (28.1) – (160.7) Total expenditure (128.6) – (30.0) (28.4) – (187.0) Net loss on investments (5.2) – – (4.4) (0.5) (10.1) Net income/(expenditure) 2.4 – (30.0) 17.7 (0.5) (10.4) Transfers between funds 30.7 (54.3) 36.7 (13.1) – – Actuarial loss on pension schemes (3.0) – – – – (3.0) Net movement in funds 30.1 (54.3) 6.7 4.6 (0.5) (13.4)

Tenby lifeguard Luke Lane-Prokopiou

63 NOTES TO THE ACCOUNTS

c) Consolidated balance sheet – analysis of funds 2018 summary

Unrestricted funds Restricted Endowed Total General Designated Fixed asset funds funds 2018 funds funds funds £M £M £M £M £M £M Fixed assets – – 461.1 – – 461.1 Investments 91.1 25.0 – 117.7 15.9 249.7 Net current assets 40.3 – – 10.0 – 50.3 Creditors falling due after more than 1 year (5.6) – – – – (5.6) Defined benefit pension liability (46.5) – – – – (46.5) Total 79.3 25.0 461.1 127.7 15.9 709.0

d) Endowed funds – analysis of major funds

Name of fund Purpose of fund Opening Income Expenditure Investment Closing balance 2018 2018 losses balance 2018 2018 2018 £M £M £M £M £M All-weather lifeboat 10.5 (0.3) Roy Barker – – 10.2 construction Dungeness Lifeboat Morrell 4.7 – – (0.2) 4.5 Station – general Other endowed funds 1.2 – – – 1.2 Total endowed funds 16.4 – – (0.5) 15.9

Valentia lifeboat crew team up with Irish Coast Guard for a joint helicopter winching exercise

RNLI ANNUAL REPORT 64 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

e) Restricted funds - analysis of major funds

Restated Income and Expenditure Transfers Closing opening investment 2018 2018 balance Donor name Purpose of fund balance gains 2018 2018 2018 £M £M £M £M £M Richard W Colton All-weather lifeboat construction 5.4 (0.3) – – 5.1 Various donors Jersey Lifeboat Station – general 7.1 1.7 (0.7) (2.1) 6.0 Gough Ritchie Trust Isle of Man lifeboat stations – general 4.3 – – – 4.3 Various donors Guernsey Lifeboat Station – general 4.0 0.2 (0.1) – 4.1 Various donors Sheringham Lifeboat Station – general 2.8 – (0.1) – 2.7 Various donors Morecambe Lifeboat Station – general 2.6 – (0.1) – 2.5 Anonymous legacy All-weather lifeboat construction – Anstruther 2.3 (0.2) – – 2.1 John and Elizabeth Allan Memorial Trust All-weather lifeboat construction – Seahouses 2.2 (0.2) – – 2.0 Roy Barker All-weather lifeboat construction 2.3 0.6 – (1.0) 1.9 Joanna Williams All-weather lifeboat construction 2.0 0.4 – (2.1) 0.3 Anonymous donation All-weather lifeboat – Newcastle 2.1 – – (2.1) – RNLI subsidiary companies To set up a lifesaving endowment 5.5 5.5 – – 11.0 Richard W Colton All-weather lifeboat construction 2.3 (0.1) – (2.2) – Elizabeth O'Kelly Fund To be used in Ireland – Endowment fund 5.5 – – – 5.5 Various donors Wells-next-the-Sea shoreworks 2.2 (0.1) – – 2.1 Anonymous Donor All-weather lifeboat – Peel 1.0 1.2 – – 2.2 Mrs H Hastings All-weather lifeboat – Eyemouth 1.2 1.0 – – 2.2 Mrs D J Pearce All-weather lifeboat construction – 2.0 – – 2.0 Total of major funds 54.8 11.7 (1.0) (9.5) 56.0 Other restricted funds 68.3 28.9 (27.4) 1.9 71.7 Total restricted funds 123.1 40.6 (28.4) (7.6) 127.7

65 NOTES TO THE ACCOUNTS

f) Designated funds – analysis of funds

Name of fund Purpose of fund Opening Income and Expenditure Transfers Closing balance investment 2018 2018 balance 2018 gains 2018 2018 £M £M £M £M £M Lifeboat stations and Planned Capital launch equipment for 79.3 – – (79.3) – Expenditure the next 3 years To help create an endowment fund to RNLI Lifesaving preserve the future of – – – 25.0 25.0 Endowment the RNLI’s lifesaving activities Total designated funds 79.3 – – (54.3) 25.0 g) Linked charities

Donor name Purpose of fund Opening Income Expenditure Transfers Closing balance 2018 2018 2018 balance 2018 2018 £M £M £M £M £M Grants for distressed Lifeboatmen’s Benevolent past or present crew 1.8 – (0.1) – 1.7 Fund members Grants for dependants Langstreth Culliford Trust 0.2 – – – 0.2 of lifesavers All-weather lifeboat John William Archer 0.1 – – – 0.1 construction Lifeboat maintenance Charles Carr Ashley 0.1 – – – 0.1 and support for crew Col Stock lifeboat Anna Stock Memorial – construction and 0.1 – – – 0.1 Fund maintenance Total of linked charities maintenance 2.3 – (0.1) – 2.2 Coxswain Dean Hegarty and Castletownbere crew kit up to go to sea. Read about their Bronze Medal rescue on page 7.

RNLI ANNUAL REPORT 66 AND ACCOUNTS 2019 NOTES TO THE ACCOUNTS

17. FINANCIAL REVIEW RECONCILIATION The financial analysis in the financial review (page 17) has been revised to show the total charitable spend, including that spent on asset purchases, together with the cashflow effect of this spend. This note shows the reconciliation between the financial statements and this analysis. The main difference is to reflect the actual spend on fixed assets, for example lifeboats and lifeboat stations, as opposed to the depreciation charge, with the adjustments for this shown in (a). The financial resources used to fund the operating deficit are shown in (b).

a) Operating deficit b) Financial resources used to fund operating deficit

SoFA Asset Asset Asset Total 2019 Cash Total purchases depreciation/ disposal (outflow)/ amortisation inflow £M £M £M £M £M £M £M Charitable spend Investment and bank movements Lifeboat service 50.9 9.6 (1.9) – 58.6 Purchase of investments (47.8) Lifeboats, property and equipment 79.3 29.9 (20.8) – 88.4 Proceeds from sale of investments 68.8 Lifeboat rescue 130.2 39.5 (22.7) – 147.0 Increase in cash and cash equivalents (1.9) Lifeguard rescue 21.0 1.0 (1.8) – 20.2 Net reduction in investments and bank 19.1 International 3.7 – – – 3.7 Working capital movements Water safety, education and awareness 10.6 0.1 (0.1) – 10.6 Increase in stock (3.2) Total Charitable spend 165.5 40.6 (24.6) – 181.5 Acquisition of stock (1.0) Income available for charitable spend Decrease in debtors 0.1 – Legacies 126.5 – – 126.5 Acquisition of debtors (1.5) 52.4 – Donation – – 52.4 Decrease in creditors (0.2) Trading (Net) 5.3 – 0.1 – 5.4 Acquisition of creditors 1.9 Charitable Trading 3.9 – – – 3.9 Net increase in working capital (3.9) 1.7 – Investments (Net) – – 1.7 Financial resources used to Other 0.7 – – 1.0 1.7 fund operating deficit 15.2 Total Net Income 190.5 – 0.1 1.0 191.6 Cost of generating income (25.6) (0.5) 0.8 – (25.3) Net income available for charitable spend 164.9 (0.5) 0.9 1.0 166.3

Operating (deficit) (0.6) (41.1) 25.5 1.0 (15.2) Asset purchases comprise fixed asset additions and acquisitions. Further analysis of fixed assets is shown in note 6.

67 NOTES TO THE ACCOUNTS

18. EVENTS AFTER THE END OF THE REPORTING PERIOD Since the 31 December 2019 to the date of signing these financial statements, the outbreak of the coronavirus pandemic has had an economic effect across all sectors and the RNLI has considered the effect on the charity as a going concern, its resilience through this period and the effect on the assets and funds of the RNLI. The Trustees have reviewed the revised financial plans and agreed a series of activities that should ensure financial stability in these difficult times. The estimated financial effect is mainly seen in an estimated £55M reduction in income, with a planned £45M reduction in expenditure to mitigate the effect and ensure that this does not affect our business- critical activities. The unrealised investment losses to the end of March 2020 were around £13M and, while we have an expectation that this may recover by the end of the year, we are still planning for a variety of situations. The pension fund liability has also worsened in the first quarter of 2020 and, although this will not affect pension fund negotiations this year, the liability shown in the Annual Report and Accounts for 2020 under the requirements of FRS102 may show an increased liability. Legacies receivable of £32M may also be affected as property prices and stock markets fall. If the situation were to worsen, then the Trustees may decide to apply for funds from the Lifesaving Endowment as an application in dire need, though there are no plans to do so at this present time, or they may decide to apply for a loan in the short term until plans can come to fruition. On review of the financial plans to the end of March 2021 the Trustees have concluded that this will not affect the ability of the charity to continue as a going concern. We remain resilient through having a considered investment policy, avoiding undue risk, and sound financial planning and management.

RNLI education volunteers make water safety lessons fun for primary school children in London

RNLI ANNUAL REPORT 68 AND ACCOUNTS 2019 RNLI OFFICERS AND CONTACTS

PATRON Janet Cooper OBE Eddie Donaldson OBE Sir Peter Housden KCB HM The Queen Janet is the senior partner Eddie was a partner with Sir Peter has served as a of law firm Tapestry KPMG for 23 years, during permanent secretary in both PRESIDENT Compliance. Before that she which time he was on Whitehall and in Scotland. HRH The Duke of Kent KG was a partner at global law both the UK and EMA He has a background in firm Linklaters for 20 years. Janet specialises executive teams. He was elected to the RNLI public services in the UK and Ireland. He was TRUSTEE BOARD in corporate governance and remuneration. Council in May 2013, appointed a Trustee in elected to the RNLI Council in May 2012, Janet was a member of the RNLI Resources July 2013, and is currently treasurer and a appointed a Trustee in November 2013, and Stuart Popham Committee from 2011 to 2014. She was deputy chairman. He chaired the Investment chaired the Remuneration Committee from CMG QC(Hon) (Chairman) elected to the RNLI Council and appointed Committee from 2012 to 2018 and has chaired 2017 to 2019. In July 2019 he was appointed After working as a solicitor a Trustee in 2014. Janet was appointed the Finance Committee since 2014. chairman of the People Committee. for over 35 years, Stuart chair of the Remuneration Committee in joined Citigroup in July 2011 October 2019. ‘I have always admired those in the RNLI ‘I am super proud to be an RNLI volunteer, as vice-chairman of EMEA Banking – retiring who risk their lives for others, so I jumped at helping to fulfil its mission in a changing in 2018. He also chaired the policy institute ‘I am inspired by the many volunteers the chance to come onboard myself.’ world.’ Chatham House. He was elected to the RNLI who work so hard to provide the RNLI’s Council in May 2011, appointed a Trustee invaluable service and feel hugely privileged Dr Philip Goodwin Vice Admiral in July 2013, and chaired the Audit and Risk to be involved in such a great organisation.’ Dr Goodwin has been chief Sir Tim Laurence Committee from 2014 to 2017. In November executive of Voluntary KCVO CB ADC(P) 2015 Stuart was appointed RNLI vice- David Delamer Service Overseas (VSO) Sir Tim is chairman of chairman. He succeeded Charles Hunter- David is managing director since March 2015. He has English Heritage and Pease as RNLI chairman in October 2016. of Technico, a company a background in international development chairman of the Major Projects Association. Stuart was made a Companion of the Order specialising in solutions for with a PhD in environmental policy and He was elected to the RNLI Council in 2004 of St Michael and St George in January 2019. the Irish telecoms industry. planning. Dr Goodwin was elected to the and appointed a Trustee in 2011. He became David was elected to the RNLI Council in RNLI Council and appointed a Trustee chairman of the Operations Committee ‘As a lifelong sailor with family who 2012. He was appointed a Trustee in 2014 in July 2018. in 2012. recognise the real value of the RNLI, and chairman of the RNLI’s Council for I felt I could do my bit to help.’ Ireland in 2015. ‘The poorest countries globally account ‘It is a great privilege for me to be able for 90% of drowning deaths. I’m delighted to support the wonderful work of our ‘For me, the RNLI gives incredible to be working with the RNLI to help bring volunteers, staff and fundraisers. I never importance and value to individual life.’ about change.’ cease to be amazed by their commitment, dedication and courage.’

69 RNLI OFFICERS AND CONTACTS

Rear Admiral Rosie Norris Chris Walters Denis Woulfe MBE Roger Lockwood CB Rosie has 30 years’ CEng MEng MBA FIMarEST FRINA (appointed July 2019) After serving in the Royal investment management Chris is a chartered engineer Denis is a business adviser Navy for 34 years, Roger was industry experience. and naval architect with and non-executive director. appointed chief executive of Formerly a fund manager over 25 years’ experience He was appointed a Trustee the Northern Lighthouse Board in 2006 until and chair of the Charities Official Investment in the marine and energy sectors. He is chief in 2019 and is chair of the Audit and Risk his retirement in 2014. He was elected to the Funds, she holds a number of investment executive of specialist UK manufacturing Committee. Denis is also a member of the RNLI Council in May 2015, served as a member board positions representing a range of group Pressure Technologies plc and has board of governors at the University of the of the Scottish Council from 2016 to 2017 and investor interests. She was elected to the held senior executive positions within the West of England. He co-chairs the LACA- appointed its chairman in 2017. Roger was RNLI Council in 2016, became a Trustee in Lloyd’s Register Group and the P&O Group. Lead the Change board – an independent appointed a Trustee in February 2018. February 2018 and has chaired the Investment Chris joined the RNLI in 2012 as a member expert committee which provides advice Committee since 2018. She is also a member of the Technical Committee. He was elected to the government and is focused on ‘With two maritime careers behind me, of the Finance Advisory Committee. to the RNLI Council, appointed a Trustee helping foster diverse and inclusive the RNLI has always been part of my and became chairman of the Technical workplace culture across UK businesses. professional life. It is a great honour now ‘I am thrilled to contribute to the Committee in May 2015. In 2018 Denis was awarded an MBE for to be able to play a role in the RNLI itself preservation and continued progress services to women and equality. Until 2017, and to be able to contribute actively to the of such an iconic service.’ ‘Inspired by the courage of volunteer Denis was a partner and vice-chairman of saving of lives at sea.’ crews and communities, I am delighted Deloitte LLP and held many leadership roles, to play a role in advancing the safety and including serving as a board member for Sonia Modray Mike Sturrock performance of the RNLI fleet.’ 8 years and leading the South West and Sonia is an interim director With a background in Wales regional practice for 11 years. and business adviser. From technology spanning December 2012 to April numerous industries and ‘The courage and dedication of RNLI staff 2013 she was interim finance sectors, Mike is now an and volunteers is truly inspiring. It is an director at the RNLI. She was elected to the executive director of Domestic & General incredible privilege to have the opportunity RNLI Council in 2014 and appointed a Trustee insurance as chief information officer and to support them.' in 2015. Sonia is chairman of the Property director of business transformation. His early Committee and is a member of the Finance career was at sea as a professional yacht Committee. captain. Mike was elected to the RNLI Council in May 2015 and appointed a Trustee in ‘From my first day at the RNLI I was November 2016. impressed by the selfless dedication and professionalism of everyone involved with ‘I’ve had a passion for the sea all my life, so this inspiring organisation.’ it’s a huge privilege to be part of the RNLI and work in the most extraordinary culture with such motivated people.’

RNLI ANNUAL REPORT 70 AND ACCOUNTS 2019 RNLI OFFICERS AND CONTACTS

CHAIRMAN Geoff Holt MBE DL The Chairman of Lloyd's Stuart Popham CMG QC(Hon) Professor Dominic Houlder The Master of The Honourable Company of Master Mariners Sir Peter Housden KCB The Deputy Master of Trinity House DEPUTY CHAIRMEN Charles Jones The Chairman of The Royal Yachting Association Eddie Donaldson OBE Rear Admiral Mark Kerr The Chairman of The Northern Lighthouse Board Vice Admiral Sir Tim Laurence KCVO CB ADC(P) Professor Anthony Kessell MBBS Mphil MSc FFPH MRCGP MD The Chairman of The Commissioners of Irish Lights Dr John Killeen The UK National Hydrographer TREASURER Vice Admiral Sir Tim Laurence KCVO CB ADC(P) Eddie Donaldson OBE Rear Admiral Roger Lockwood CB Peter Lloyd MBE MBA MA (elected July 2019) INVESTMENT ADVISER OUTGOING TRUSTEES IN 2019 Alan Marsh MBE FICS Lane Clark & Peacock LLP Mark Byford (retired July 2019) Niamh McCutcheon 95 Wigmore Street, London, W1U 1DQ Paddy McLaughlin COUNCIL Captain Ian McNaught CVO MNM PRINCIPAL BANKERS HRH The Duke of Kent KG (President) Sonia Modray Barclays Stuart Popham CMG QC(Hon) (Chairman) Sandra Morson Wytham Court, 11 West Way, Oxford, OX2 0JB Dr Peter Aitken MB ChB MTCGP FRCPsych FHEA DCH DRCOG Judy Nelson MBA Tony Allen (retired May 2019) Rosie Norris AUDITOR Neil Appleton Paul O'Leary BDO LLP Alison Appleyard BEd (Hons) NPQH ARCM LTCL FCMI Scott Parsons 55 Baker Street, London, W1U 7EU John Burke Mark Pritchard Mark Byford (retired July 2019) Michael Seymour Katie Cadden B.Corp Law, LL.B, LL. N. Solicitor (elected July 2019) Mike Sturrock PRINCIPAL SOLICITORS Professor John Chudley BSc PhD CMarEng CEng FIMarEST Professor Phil Sutton CBE FREng PhD Wilsons Solicitors Womble Bond Dickinson Andrew Cooper CMG Professor Mike Tipton MBE MSc PhD Steynings House Oceana House Janet Cooper OBE Hugh Tully (elected July 2019) Fisherton Street 39–49 Commercial Road Professor Charles Deakin MA MD FRCP FRCA FERC FFICM Dr Jean Venables CBE Salisbury SP2 7RJ Southampton SO15 1GA David Delamer Ian Venner The Hon Andrew Dixon (elected July 2019) Chris Walters CEng MEng MBA FIMarEST FRINA Brechin Tindall Oatts Blake Morgan LLP Eddie Donaldson OBE John Whybrow 48 St Vincent Street Harbour Court Simon Dudley Lesley Wilkin Glasgow G2 5HS Compass Road, William Everard CBE BSc(Eng) Dr Nick Winterbotham FMA FASDC North Harbour Roger Fairhead Kate Wilson O'Connell Brennan Portsmouth PO6 4ST Fiona Fell Mark Wordsworth Armitage House Dr Philip Goodwin Denis Woulfe MBE 10 Lower Hatch Street Sackers & Partners LLP Martin Gregory Dublin 2 20 Gresham Street Adam Griffin EX OFFICIO GOVERNORS London EC2V 7JE David Hallam The Lord Mayor of London Charles Russell Speechleys LLP Captain Neil Hardy MBE FNI The Chairman of The Baltic Exchange 8–10 Fetter lane Jonathan Hart The First Sea Lord London EC4A 1RS

71 RNLI OFFICERS AND CONTACTS

STANDING COMMITTEES EXECUTIVE TEAM The following Executive Team appointments Membership Nomination Committee Chief Executive and roles changed during 2019: Chairman: Stuart Popham CMG QC(Hon) Mark Dowie Chief Executive Remuneration Committee Director of Engineering and Supply Paul Boissier CB MA MSc (retired June 2019) Chairman: Sir Peter Housden KCB (retired July 2019) Angus Watson Chairman: Janet Cooper OBE (appointed October 2019) Operations Director Chief Information Officer George Rawlinson (retired August 2019) Audit and Risk Committee Claire Deuchar Chairman: Mark Byford (retired July 2019) Engineering and Asset Chairman: Denis Woulfe MBE (appointed July 2019) Director of Fundraising, Management Director Marketing and Media Angus Watson (until July 2019) Investment Committee Jayne George Chairman: Rosie Norris Chief Information Officer Director of Lifesaving Operations and Supply Chain Director Property Committee John Payne Claire Deuchar (until July 2019) Chairman: Sonia Modray Chief Finance Officer Fundraising Director Steven Peacock Jayne George (until July 2019)

ADVISORY COMMITTEES Director of People Community Lifesaving Director Operations Committee Medical Committee Sue Barnes John Payne (until July 2019) Chairman: Vice Admiral Chairman: Professor Charles Deakin Sir Tim Laurence KCVO CB ADC(P) MA MD FRCP FRCA FERC FFICM (retired March 2019) International Director People Director Chairman: Dr Peter Aitken James Vaughan Sue Barnes (until July 2019) Technical Committee MB ChB MTCGP FRCPsych FHEA DCH DRCOG Chairman: Chris Walters (appointed March 2019) Associate Director – Fundraising, Business Services and Support Director CEng MEng MBA FIMarEST FRINA Marketing and Media Angela Rook BSc MBA ACIS (until July 2019) (retired October 2019) Angela Rook BSc MBA ACIS Chairman: John Newell Scottish Council MBE BSc MSc CEng FIMarEST Chairman: Rear Admiral Roger Lockwood CB COMPANY SECRETARY (appointed October 2019) Simon Payne Council for Ireland Finance Committee Chairman: David Delamer Chairman: Eddie Donaldson OBE People Committee Heritage Committee Chairman: Sir Peter Housden KCB Chairman: Dr Nick Winterbotham FMA FASDC (appointed July 2019) The RNLI thanks its past chairmen and vice presidents for their ongoing support and commitment.

RNLI ANNUAL REPORT 72 AND ACCOUNTS 2019 RNLI • 238 lifeboat stations • 5,600+ volunteer crew RNLI • 248 lifeguarded beaches • 3,500+ shore-based volunteers lifesaving • Community and Coastal Safety teams • 1,577 lifeguards governance delivery • Flood rescue • Volunteer education and coastal and management • International programmes safety officers

supported by 1,843 staff members Locations Departments structure (excluding seasonal • Regional bases • Engineering and Supply staff) • Manufacturing units • Finance, Planning and Improvement • Community • Fundraising, Marketing and Media RNLI Support fundraising offices, • Insights, Technology and Strategy Centre, Poole some of which are • International co-located with • Lifesaving Operations regional bases • People

Volunteer • 1,100+ volunteer groups fundraisers, speakers • 23,000+ volunteer community fundraisers managed by and press officers • 414 education volunteers

• 500,000+ individual members and donors, Financial supporters plus corporate partners and charitable trusts

Executive Team RNLI companies • RNLI (Sales) Limited overseen by • RNLI (Trading) Limited • Nominations • RNLI College Limited • Remuneration • Clayton Engineering Limited Chairman and Trustees Standing committees • Audit and Risk • CEL Holdings Limited • Property • RNLI Lifesaving Endowment (CIO) • Investment appointed by

Advisory committees • Operations Council • Finance • Technical • Heritage elected by • Medical • People • Regional Council for Ireland Governors • Regional Council for Scotland

73 Crew Member Becs Miller in the wheelhouse of Dunbar lifeboat

RNLI ANNUAL REPORT 74 AND ACCOUNTS 2019 THANK YOU

The RNLI would like to say a huge thank you to the thousands of individuals who made our lifesaving work possible in 2019.

LEGACIES The RNLI is grateful for every legacy, big or small. Here are years, buying Christmas cards, tea towels and so on. • The Derwent Trust for their generous support some of the gifts in Wills we received last year: The RNLI does a fantastic job so we are happy that he of the RNLI in 2019. • Mary Debling died in January 2019 and generously left the has contributed and his wishes have been fulfilled and • The Dr Scholl Foundation for generously supporting residue of her estate between the RNLI and the RSPCA. appreciated.’ the RNLI's lifesaving service on the Isle of Man. Mary lived all her life in Ramsgate and was present during • The Foster Wood Foundation for supporting Portsmouth the Little Ships rescue of troops from Dunkirk in 1940. TRUSTS, FOUNDATIONS AND Lifeboat Station. • Anthony Gerald Hoyle left a pecuniary legacy to the INSTITUTIONAL DONORS • The Ganton Furze Settlement for kindly supporting crew RNLI. Anthony chose the RNLI as a worthy charity for the We are extremely lucky to work with so many generous training at Mallaig Lifeboat Station. ‘tireless work and incredible bravery the volunteers and charitable organisations and individuals. Many of them • The Hearn Medicine Chest Trust for generously funding rescuers perform and show’. His son David very kindly support on a regular basis or phase their gifts over several a new E class lifeboat for the Thames, and also our increased the gift, in accordance with his father’s final years. This helps us plan for the future and match lifesaving international work. wishes. In making this further gift, David commented on projects to the specific objectives of these trusts, foundations • The Iliffe Family Charitable Trust for generously the tremendous service the RNLI provides and that he was and donors. Thank you to: supporting crew training. proud to be able to make this additional donation on his • Allan and Nesta Ferguson Charitable Settlement for kindly • The Isle of Man Government for funding the delivery of father’s behalf. supporting our work in Bangladesh. aquatic survival lessons to children in Bangladesh. • Rosemary Hereford from Camborne left a share of her • Misses Barrie Charitable Trust for generously funding the • The Joan Braithwaite Sailing Trust for kindly supporting residuary estate. Miss Hereford supported the RNLI for new B class lifeboat for Burry Port Lifeboat Station. the RNLI's apprenticeship programme through the Joan many years and, for her 100th birthday, raised over £700 • Owl Trust for generously supporting crew training at Braithwaite Scholarship. for our Helston branch. stations on the north east coast of England, our Swim Safe • The John Scott Trust for generously supporting Troon • Patricia Macdonald was a lifelong supporter of the programme and our work in Tanzania. Lifeboat Station. RNLI and left a pecuniary legacy to benefit the work of • Stelios Philanthropic Foundation for generously • The Kenneth and Susan Green Foundation for their Appledore Lifeboat Station. Patricia was born in Devon supporting crew training at Tower Lifeboat Station. continuing support of crew training at The Lizard but moved to London with her parents shortly after. Her • The Alice Ellen Cooper Dean Charitable Foundation Lifeboat Station. grandparents lived in Appledore and she often stayed with for their support of crew training at Weymouth • The Laurence Misener Charitable Trust for their kind them, especially during the War. Patricia often talked and Lifeboat Station. support of Newhaven and Salcombe Lifeboat Stations. reminisced about Appledore lifeboat and made regular • The B&J Lloyd Family Charitable Trust for • The Lawson Trust for kindly supporting crew training at visits to the station. their generous support of the RNLI's apprenticeship Dungeness and Ramsgate Lifeboat Stations. • John Pye kindly left a share of his estate. John was an programme. • The Lloyd's Register Foundation for their generous support officer in the Royal Navy and, with his love of the sea, • The Department for International Development (DFID) for of Sea Survival crew training. the RNLI became his favourite charity. His daughters, its valuable support in providing daycare supervision for • The Maggi Haines Trust for their generous support of Sharon and Mikiel, said: ‘He supported the RNLI for many children in Barisal, Bangladesh. the RNLI in 2019.

75 THANK YOU

• The Manx Lottery Trust for kindly helping to provide kit for • John and Sally Sue Bradley for their generous support PARTNERSHIP SUPPORTERS the brave volunteer crews on the Isle of Man. of Bangor, Donaghadee and Tower Lifeboat Stations. We would like to thank all the companies and organisations • The Maytham Trust for generously supporting our • Kathleen Watkin for her generous support of Courtown that supported us in 2019. In particular, for their continued international work. D class in 2019. and significant support, we thank: • The Miss I F Harvey Charitable Trust for generous support • Keith Clayton for funding a D class at St Davids • EDF Renewables of Troon Lifeboat Station. Lifeboat Station. • Ford UK • The Mrs J M Bagley Settlement for their support • Marion Graham for her generous support of • Fred.Olsen Cruise Lines of the RNLI. the RNLI in 2019. • GAA • The Mullion Charitable Trust for kindly supporting • Mary Warriner for supporting Workington • GAC UK Falmouth Lifeboat Station. Lifeboat Station. • GJW Direct • The Peter Cundill Foundation for their support of • Pat and Jimmy Hamilton for their continued support of • Gwynt y Môr Offshore Wind Farm* drowning prevention in Zanzibar, Tanzania. the RNLI on the west coast of Scotland. • Haven Holidays • The Princess Charlene of Monaco Foundation for their • Paul Brittlebank FRICS for his generous support of Penlee • Helly Hansen commitment to the fight against global drowning in Lifeboat Station in 2019. • MEATLiquor Tanzania and Bangladesh. • Peter Antram for his generous support of Weymouth • Nicholson’s, part of Mitchells & Butlers Leisure Retail • The Sally Odell Charitable Trust for kindly supporting Lifeboat Station, in memory of his late wife Carline. Limited Kinsale Lifeboat Station. • Richard and Jo Archer for their vital support of the new • Ørsted • The Samuel and Freda Parkinson Charitable Trust for Penlee Lifeboat Station. • Toolstation generously supporting the RNLI in Cumbria. • Robert Breckman for his generous support of • The Lifeboat Fund • The Whitewater Charitable Trust for kindly supporting our the RNLI in 2019 in memory of Julie. work in Bangladesh. • Robert Martyn Holland for funding a D class at Skegness. THE FUNDRAISERS • Thorntons Charitable Trust for their generous support of • Stan Venitt for his generous support of crew kit and Thank you to the thousands of volunteers in our branches the RNLI in 2019. training at Shoreham Harbour Lifeboat Station, in and guilds. Your hard work and dedication raised vital funds memory of his late wife Janet. through a huge range of activities – everything from coffee MEMBERS AND SUPPORTERS • Sue Scott for her generous contributions mornings to grand balls. And thank you to your communities Whether your donation pays for welly boots or a boat, we are to Aldeburgh Lifeboat Station. for their generous donations and support. grateful for the generosity of all our supporters. Every pound • The Moule family for their kind support for Thanks to our shop and souvenir volunteers for keeping or euro has a part to play. For their significant contributions St Ives Lifeboat Station. the RNLI open for business and raising over £6.4M. And thank last year, we thank: • The Wells Family for their kind support for you to the 950 independent fundraisers who walked, ran and • Anne Lawson for her continued support of Scarborough the lifeguards at Constantine Beach. jumped their way to raising £688,000 in 2019. and Filey Lifeboat Stations. You are the vital first link in saving lives. • Anthony and Gillian Gill for their generous support for crew training at Rye Harbour Lifeboat Station. • Ian and Lynda Smith for their continued and valued support in 2019. • Ian and Vivien Bell for funding B class Vivacious * a project currently shared between Innogy UK, Stadtwerke München Atlantic in 2019. (Munich Principal Utilities), the UK Green Investment Bank and Siemens

RNLI ANNUAL REPORT 76 AND ACCOUNTS 2019 ‘With courage, nothing is impossible’

Sir William Hillary, RNLI founder

Royal National Lifeboat Institution West Quay Road, Poole, Dorset, BH15 1HZ Tel 0300 300 9990 [email protected] RNLI.org

The RNLI is the charity that saves lives at sea Photos: RNLI/(Mark Barker, Harrison Bates, Mike Lang, Cover image: The crew at Valentia on a boarding boat, Royal National Lifeboat Institution, a charity registered in Langland Lifeguards, Steve Lowe, Nick Mailer, Nigel heading out to their Severn class lifeboat England and Wales (209603), Scotland (SC037736), the Millard, John Roberts, James Smerdon, Nathan Williams, Republic of Ireland (20003326), the Bailiwick of Jersey (14), Dean Wright), GMB Akash, Stephen Duncombe, Gavin the Isle of Man, the Bailiwick of Guernsey and Alderney Jones, Laura Lewis, Ceri Oakes. [email protected]

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