RNLI Annual Report and Accounts 2018

Lifesaving powered by inspirational people Contents Welcome

We are the RNLI: The charity that saves lives at sea Annual Report Welcome from the Chairman and Chief Executive of the Trustees of the Royal Every day of every year, people The RNLI is powered by inspirational people, Strong alliances also help to keep RNLI of all backgrounds get into National Lifeboat Institution and the work we achieved together in 2018 people safer. For example, our new partnership is saving lives right now. with Helly Hansen is providing our lifeavers danger in the water. It’s a Our lifesavers aided thousands of people with the very best in protective clothing. problem we’re here to tackle. Our purpose, our impact 3 across the UK and Ireland last year. And their Meanwhile, the six new all-weather Shannons fellow volunteers welcomed millions of visitors and 22 inshore lifeboats that rolled off our Our people 9 through our doors, with those in our shops in-house production lines in 2018 will also give We’re here to explain the risks, and branches generating an incredible them the protection they need and deserve. share safety knowledge and Supporting lifesavers 15 fundraising total. The expertise, courage and commitment of RNLI people never ceases to amaze me. rescue people whose lives are Preventing drowning 21 ‘We helped people enjoy the water Together, we helped other people enjoy the water more safely – and enabled our lifesavers in danger. more safely and enabled our to rescue those in danger. Building for the future 27 lifesavers to rescue those in danger’ We’re here to work with others So, thank you for your support. You make Financial review 31 all of this possible. to make the water a safer place These local networks were supported by a wider community of volunteers, supporters and for everyone. Governance 37 staff – like those who pulled out the stops to Stuart Popham make fundraising events like Mayday and Fish RNLI Chairman Paul Boissier and Stuart Popham at the RNLI College, Poole We’re here to prevent tragedies Independent auditor’s report 49 Supper a success. Our campaigns raised safety awareness as well as funds. Respect the Water inshore and offshore. And with Financial statements 51 brought great results – with more people 2018 was a year of challenges for many of us growing our influence as a global thought- help others understand why the RNLI mission your help, we always will be. telling us that our ‘float to live’ message had at the RNLI and I am so proud that we have leader in drowning prevention. is so important. I think it’s vital that our charity Notes to the accounts 57 helped to save their lives. And our education risen to meet them together. This is vital because nobody should drown. continues to broaden its relevance too – that’s volunteers and face-to-face teams shared There were things we needed to sort out We know that the vast majority of drownings the only way it will sustain itself. Officers and contacts 79 safety messages with hundreds of thousands to get our charity on the right footing for can be avoided, so long as people take the Working for the RNLI over the last decade more adults and children – all working in, the future. So I really want to thank all our right steps. We need to share our knowledge far has been one of the greatest privileges of my life, Governance and with, and for the community. I would like to supporters, crews, volunteers and staff for and wide, get the right interventions in place, and I’ve had the opportunity to work with some management structure 83 take this opportunity to say a big thank you getting us to this point with such enthusiasm, and drive down those stats – preventing as of the best people in the world. We’ve done a to them all. hard work and good grace. We are now in a many drownings as possible. huge amount of good over the last decade. And Awards 84 We worked with others to tackle drowning strong position to really start building on that I believe our charity is in good shape to grow its overseas too, and I was proud to see this first groundwork to reach our goals. ‘The vast majority of drownings can influence and move forward into the future. Thank you 85 hand in Bangladesh and fully understand In 2019 we will continue to enhance our be avoided – so long as people take Thank you for everything you do to help the difference we are making there with rescue service by modernising equipment, save lives at sea. our partners. Our drowning prevention getting new lifeboats out on our coasts, and the right steps’ programmes there are so well-researched and building and refurbishing stations for them. far-reaching, and we can apply what we learn We will ramp up our prevention work, expand We all have a part to play in spreading the Paul Boissier to the work we do in our home waters. our international programmes and continue word of this extraordinary organisation and to RNLI Chief Executive 1 2 Our purpose, our impact

WHAT WE DO

Our purpose, RNLI volunteer lifeboat crews provide a 24-hour rescue service in the UK and Ireland, and our seasonal lifeguards look after people on busy beaches. Our in-house experts and specially-trained volunteers also support flood rescue throughout the UK. This forms our Concept of Operations our impact in the UK and Ireland, which works to measurable performance standards. We aim to prevent drowning by WE’RE MORE THAN A RESCUE SERVICE Wherever drowning occurs, we aim to defeat it. With your empowering communities and saving LIFEBOATS COMMUNITY SAFETY FUNDING support the RNLI can break the drowning chain and make early interventions by influencing, supervising and educating lives through these principal activities: Our crews aim to launch their lifeboats within 10 minutes of being Making people safer is core to the RNLI’s operations and As a charity independent of government, we rely on the people. We work with partners to understand the risks and notified, and can operate up to 100 nautical miles out to sea. underpins our aim to halve the number of accidental coastal generous support of donors to meet the cost of our lifesaving offer innovative solutions – and our Community Safety We aim to reach at least 90% of casualties within 10 nautical miles fatalities in the UK and Ireland by 2024. We use research, activities. We set exacting standards in our fundraising to teams share that knowledge with anyone using the water to of the coast, within 30 minutes of a lifeboat launch in any weather. targetted campaigns and lifesaving plans to encourage changes protect and maintain good relationships with our supporters keep them safer. We share that expertise internationally too. The vast majority of crew members are volunteers. in people’s behaviour, in and around the water. and ensure financial stability. 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 generate income and ensure that we are well- governed and compliant.

OUR VOLUNTEERS Volunteers are the lifeblood of our charity, supported by expert staff working in partnership to enable communities to save lives. Around 95% of RNLI people are volunteers – including around 5,500 crew members, 3,500 shore crew (including station management), 180 lifeguards and 23,000 community fundraisers. Thousands more dedicated volunteers raise awareness, give safety advice and help in LIFEGUARDS INTERNATIONAL FLOOD RESCUE our museums, shops and offices. Find out more about our people on page 9. Lifeguards aim to reach anyone up to 300m from shore, We are working to get the global drowning problem onto Our specially-trained flood rescue teams can reach nearly within the red and yellow flags on RNLI-patrolled beaches, the agenda of policy makers. We collaborate with other any flood rendezvous point in the UK within 6 hours. in 3½ minutes. organisations to understand the causes of drowning, undertake research, and design and test solutions.

3 4 Our purpose,purpose our impact Our purpose, our impact

OUR IMPACT IN 2018 • There were improvements in some of our key organisational 2019 FOCUS DANGER RISING • RNLI lifeboat crews aided 9,412 people, with our lifeguards measures such as average crew competency for critical We have set out a business improvement plan for 2019 that is Appledore RNLI volunteers put all their training and aiding a further 32,207 (8,072 and 24,044 in 2017 command roles, percentage of stock delivered to the coast focused on: 4 equipment into action when a frightened young couple got respectively). Together, they saved 329 lives last year (248 in on-time and in full, and lifeboat volunteer turnover. • stabilising and securing the delivery of our rescue services known drownings prevented as a direct trapped in a cave trying to escape powerful waves 2017). and providing greater levels of support to our local lifesaving in September. • We reached around 46M people with our ‘float to live’ Where the Quarterly Performance Reviews showed us as communities result of Respect the Water (7 in 2017) The inshore lifeboat crew spotted the teenagers message and more individuals told us that it helped to save being off-track, corrective actions were identified to get us back • starting to address key areas of risk and compliance, among rocks, waving a mobile phone light in desperation. their lives. on course. One example was a 13% increase in the number of particularly with regard to the safety of our people Crew Member Matt Rowe says: ‘The tide was rising, and • Our people spoke with hundreds of thousands more children injuries to RNLI people last year, which is why we are developing • updating some of our core technology and people capabilities it wouldn’t have been long before they’d have been in the and adults about water safety – with statistics showing that new measures to keep our volunteers and staff safer. to stabilise our current situation, while building a platform for water with waves breaking over them. The girl couldn’t 80% of the UK population now thinks about water safety, the future. swim so I dread to think what would have happened if they compared to 73% in 2017. 329 hadn’t managed to call for help.’ Our vision is: We continued to raise the profile of drowning prevention We will also raise awareness and inspire financial support lives saved by RNLI crews and lifeguards Helm Nick Ayres steadily reversed their craft towards • To end preventable loss of life at sea. with priority countries – and our international projects and by filming another series of Saving Lives at Sea and develop (248 in 2017) the cave and, when they were within 20m, Matt got into interventions started to influence global standards. And our mission is: viable plans to guide RNLI activity in priority countries too. This the surf. ‘As I swam towards the cave, I knew I needed to get • We created or strengthened lifesaving partnerships with To serve the people and communities at risk includes expanding our international prevention work into more a foothold as soon as possible,’ he says. When he reached local authorities, governments and like-minded organisations south Asian and sub-Saharan African countries. the pair, they were up to their knees and being buffeted by throughout the UK, Ireland and around the world. of drowning and work with our partners, We will need to spend a further £23M over and above our waves. Matt took the girl to the lifeboat first and, pausing domestically and internationally, to reduce the income. This will be spent mainly on updating ageing lifeboats briefly to regain his footing and avoid a large set of waves, In 2018 we focused on maintaining a world-class risks at each stage of the drowning chain. and stations to improve safety and standards, and also on IT 41,619 returned for the boy. rescue service while improving operational safety. This equipment where we are heavily reliant on old technology – like people aided by RNLI crews and lifeguards The cold and shocked teens were transferred to the included bolstering support for our lifesavers, introducing our paging system and station computers. In these times of (32,116 in 2017) station’s all-weather lifeboat and whisked back to shore, safety enhancements to reduce risk to our people, making FUTURE DIRECTION continuing economic uncertainty, we must remain efficient and where paramedics gave them the all-clear. improvements to our competence-based training and casualty By 2024 we are committed to: continue to find new and innovative ways to raise that money – reporting systems, and increasing the efficiency of our inshore • halving the number of accidental coastal fatalities across and we will need to rely on public goodwill more than ever. and all-weather lifeboat centres. We also began investigating the the UK and Ireland* ‘I dread to think what would viability of new drowning prevention programmes in four priority • reducing the risk of drowning in countries that account for ACTING WITH INTEGRITY have happened’ countries. 25% of global drowning. 76,952 As a result, our charitable spend increased by £4.5M in 2018. Our work isn’t just about what we do, it’s also about how MATT ROWE | CREW MEMBER See our financial review on page 31 for more details. Our strategy to reach these goals is rooted in years we go about doing it. The RNLI aims to uphold its values, people learned water safety messages as a of experience and has to become more evidence-led. The standards and agreed policies wherever possible. In 2018 we direct result of our work with international MEASURING PERFORMANCE circumstances in which people drown vary but the risk of saw that making the right decision isn’t always easy, when partners (87,151 in 2017) We measured progress towards our organisational goals through drowning follows a common chain of events known as the negative articles appeared in the media relating to issues Quarterly Performance Reviews. These tracked both our impact drowning chain. Our strategy is to work back up this drowning with crews at four of our lifeboat stations. These issues were on the drowning chain and our ability to impact the drowning chain to better understand the causes, identify ways to reduce dealt with professionally and appropriately but the RNLI chain, now and in the future. 2018 saw some real positives, the risk and to deploy the right activities to mitigate that risk. endured some sensationalised and inaccurate reporting – for example: We deliver these activities through a combination of channels. and a number of our people were unfairly attacked on social • The percentage of people in the UK who consider safety Our communities and volunteers continue to play a vital part media. However, in the longer-term, we saw increased public 257,697 important when in and around the water reached a record in that – increasingly in partnership with other organisations trust in our charity. The RNLI will continue to uphold its hours at sea given to rescues and exercises high, exceeding our 2018 target. and directly with those at risk. values and act with integrity. See page 39 for more. • We saw a downward trend in the number of serious incidents Find out more about the drowning chain, and our strategy by our lifeboat crews (207,839 in 2017) attended by lifeboats – one of our business plan targets. to break it, on page 22. *the 189 accidental coastal fatalities described in the RNLI’s Lifesaving Strategy 5 6 Our purpose, our impact Our purpose, our impact

JOINT RESPONSE Portrush lifeguards and lifeboat crew joined forces to save a man’s life off East Strand Beach in June. It was just after 7pm, as lifeguards were packing up for the day, when someone alerted them to a swimmer in serious trouble about 500m away. Meanwhile, Portrush inshore lifeboat crew were out training nearby. Helm Ben Wilson says: ‘We hadn’t received a call on the radio but noticed our lifeguards running towards a young man in the water.’ They sped towards the swimmer too and found him dazed and sinking. They swiftly pulled him onboard the lifeboat. ‘A few minutes later, he could have drowned,’ says Ben. ‘I don’t think he realised quite how lucky he was.’ They brought their casualty ashore and transferred him into the care of the lifeguards who took him to their hut for casualty care and a thorough checking over. The man joined his friends further up the beach as soon as the lifeguards declared him fit and well. It was no accident that Portrush lifeguards and crew worked together so seamlessly – they train together and practise a range of rescue scenarios, including ones just like this.

‘Luckily we were still on the beach’ JOSH MCCAW | SENIOR LIFEGUARD

Training lifeboats moored up at RNLI College

7 8 Our people

Ordinary people doing extraordinary things are at the heart of ‘I want kids to stay alert when Our people the RNLI – and the vast majority are volunteers. Our lifeboat they’re near water’ crews and lifeguards, land-based volunteers, fundraisers, ELSIE MACRAE | EDUCATION VOLUNTEER, SCOTLAND partners, supporters and staff, all share a common purpose: to prevent drowning.

PROTECTING THE YOUNG Educating children about water safety is fundamental to breaking the drowning chain and we rely on spirited people to ignite children’s interest and teach them knowledge and skills. Last year our Youth Education Team managed a range of outreach programmes across the UK and Ireland, with volunteer presenters and lifeguards speaking with more than 520,000 young people at schools and youth groups. Our lifeguards also delivered beach safety advice to another 130,670 children through their youth engagement programme. Our messages reached more youngsters through our partners at Birmingham City Council, Peter Jones Academies, Northern Ireland Water, Nottingham Water Safety Forum, and Water Safety Scotland. And we joined forces with the Robbie Lea Water Safety Partnership, which was set up to support water safety initiatives following the drowning of teenager Robbie Lea in a Hertfordshire lake in May 2017.

‘I was at an emergency services event when I stopped to find out more about the RNLI. Two years later, here I am! I just love being part of the RNLI. The other volunteers I’ve met are so passionate about their work. If I lived at the coast, I would love to join a crew too. ‘Our education visits are so important. The teachers say: “Elsie, if we tell them the dos and don’ts, they never listen. But if someone like you comes and tells them, they tend to listen.” ‘Stop, think and look out for dangers is one piece of safety advice that really stands out for me. I want kids to learn to take a second and stay alert when they’re near water. ‘Working with children means being flexible and thinking on your feet too. Children always come up with strange questions and stories you’re not prepared for. One girl asked how old I was, then said she thought I looked 13. She made my day!’

9 10 Our people Our people

SHARING SKILLS MEETING THE PUBLIC ‘When the pager goes off I Volunteers in our lifeboat stations, museums and visitor centres welcomed more than 4M people through our doors, inspiring still get the same feeling as generations new and old to support the RNLI. Meanwhile, our my first shout’ 19,379 dedicated Face-to-face Team shared safety messages with hundreds more across 100 beaches and 250 events, signed up PATCH HARVEY | FULL-TIME COXSWAIN, PENLEE children completed Swim Safe lessons over 18,000 new regular supporters and collected donations. (13,158 in 2017). For the first time, Team members also gave their own time to set up new fundraising branches, join the Youth Education Team or raise more money. Patch was working as a fisherman out of Newlyn Harbour we tested indoor sessions with a further when he first volunteered for his local lifeboat crew – 27,209 young people RAISING THE FUNDS following in the footsteps of his grandfather and great Fundraisers and supporters from all walks of life worked together grandfather. Last year he celebrated 25 years being on the to raise more than £192M total income for the RNLI in 2018. crew and carrying out more than 600 rescues. £13.6M of that was generated by our devoted branch fundraisers ‘It seems to have gone very quick,’ he says. ‘I can alone, while others volunteered in our shops, joined in with remember my first rescue as if it was last week. And I still high-profile community events like Mayday and Fish Supper, or get that same feeling when the pager goes off. It’s a huge ‘Sadly, the other crewman didn’t make it. We searched all day 756,378 organised their own fundraising activities. The RNLI increasingly honour to be coxswain at Penlee. The job is so rewarding. but he was never found. That was very hard.’ young people in the UK relies on people to generate these types of income. See page 5 to It doesn’t get any better than being responsible for saving a Through bad times and good, Patch has worked alongside find out why we need to raise more funds. life at sea and rescuing others.’ RNLI people from all walks of life. ‘Lifeboat crew are very and Ireland received He’s had many memorable shouts, including the night- special people and you become good friends with them. water safety advice OUR STAFF time search for a surfer who had been missing for 6 hours. Some of the crew here have served for over 20 years and they and information Paid staff are a vital ingredient in the mix of RNLI people – Both Penlee lifeboats joined a multi-agency search and all give up valuable time with their families to do it. Being on they support our volunteers. Last year this group of talented found the surfer a mile offshore – hypothermic, but alive. call means you miss out on so much as you are limited to 1 professionals worked across a range of disciplines including Patch also recalls a shout to a missing fishing vessel that mile of the lifeboat station. I have to say a big thank you to my engineering, logistics, training, drowning prevention, marketing, had three of his close friends onboard. ‘The boat sank and wife Nina because being the wife of a full-time lifeboat crew fundraising, finance, media, business systems, research and only two of them managed to get to the liferaft,’ he says. member is not easy.’ human resources. More than 200 were full-time crew members. Most RNLI staff see their role as a lifesaving vocation, rather than a job, and an increasing number volunteer too. Supporter Care We needed to boost our technical capabilities too, providing 2018 2017 Manager Alison Murphy says: ‘We find talking with supporters support and strengthening technical assurance within our and volunteers so humbling. That inspires us to listen, build volunteer community, as well as increasing the roles within our Lifeboat service 319 310 rapport, and deliver the sort of customer service we think All-weather Lifeboat Centre to build new Shannon class lifeboats Lifeboats, property and equipment 663 609 everyone deserves.’ and support the refit and upkeep of our existing fleet. Lifeguard rescue 41 36 In the summer we worked with Swim England, Scottish partnerships and around 50 supporting partners. It also The majority of new roles created last year were to provide These new roles required increased support from our Swimming and Swim Wales to deliver Swim Safe to relied heavily on the volunteers who registered participants, additional support to our coastal communities. The need to people, finance and IT functions too – and our data and insight International 21 18 thousands of children. The fun and free outdoor swimming distributed kit, shared safety messaging, and carried out comply with high levels of regulation with increased reporting specialists, to ensure that they are using the right evidence to Safety, education and awareness 90 81 sessions took place at 30 coastal and inland locations, evaluations. Many RNLI volunteers were recognised for their has risen. This places additional burden and expectation on our support decision-making in our bid to reduce drowning by 50% Support 301 259 with qualified lifeguards and swimming instructors helping contribution to the programme last year. Hope Filby, Swim volunteers. Additional roles were introduced to improve local by 2024. Legacies and donations 294 301 youngsters to improve their swimming and feel more Safe Site Coordinator in Criccieth, says: ‘Swim Safe was more Last year we updated all our youth education resources, giving management and provide better day-to-day support in our The average number of employees (excluding seasonal Trading activities 26 17 confident in the water. This couldn’t have happened without important than ever in 2018 as more young people headed to teachers and youth group leaders over 40 ready-made workshops regional and coastal communities – and to ensure we provide a staff), calculated on a full-time equivalent basis and analysed by the help of so many dedicated people across 26 local beaches, lakes and reservoirs because of the hot weather.’ that align with national school curricula over four age groups. compliant rescue service. function, was: Total 1,755 1,631 11 12 Our people Our people

‘I thought I was going to drown because I couldn’t swim’ ENDA LONERGAN | KAYAKER

‘No one has died in the lifeguard area. That’s the biggest achievement’

IMTEAZ AHMED | SEASAFE PROJECT MANAGER, BANGLADESH

Bangladesh has one of the highest drowning rates in the world. SeaSafe is a joint initiative between the RNLI and the CIPRB (Centre for Injury Prevention and Research, Bangladesh) to reduce drowning in the coastal area of Cox’s Bazar. Project Manager Imteaz says: ‘It has one of the longest beaches, more than 120km of unbroken sands. There are many rip currents, and people use inflatables to float and play. This is one of the main Enda was kayaking off the coast of County Mayo when he found ‘At 7pm that day, having dinner with my family, that’s causes of drowning here.’ In 2018 SeaSafe lifeguards carried out himself in trouble. ‘It was a beautiful day, weather-wise, in the when the shock hit me and I started to cry at the table. 313,053 preventative actions and rescued 40 people there. month of June in the west of Ireland. Just perfect,’ he says. ‘And I realised I might very well not have been sitting there ‘When I was young I had the wrong information about the everything was going hunky dory until I didn’t pay attention to with them.’ sea. People said that the sea is safer when it’s high tide, risky the wake of a passing boat. Before I knew it, I was in the water. when it’s low. This is genuinely what everyone thinks!’ Last year, ‘I was 10 feet, 20 feet, then 30 feet away from the kayak. the SeaSafe Community Education Team visited 84 schools, My flotation device was now around my face because it educating 21,937 schoolchildren on the real facts. They also wasn’t the right size for me. I thought I was going to drown, taught 770 children to swim and showed 9,028 adults how to because I couldn’t swim.’ spot the dangers, keep themselves safe and rescue others. ‘After some splashing around, and swallowing a lot of ‘Lots of my friends, lots from my community have drowned. seawater, I got this flash of inspiration where I remembered But the difference from when SeaSafe started its journey is seeing the RNLI Respect the Water YouTube clip that said: that no one has died in the lifeguard area. That’s the biggest “Relax, put your arms out, and you’ll float.” I’m so thankful I Find out more about our Respect the Water achievement so far, for us.’ In 2018 we hijacked an iconic, red telephone box remembered it. campaign on page 25. and turned it yellow in celebration of RNLI Mayday 13 14 Supporting lifesavers

RNLI lifeboat volunteers and lifeguards depend on well-maintained MAYDAY 2018 Supporting rescue craft and equipment, regular training, and robust shore facilities to save lives and reunite loved ones. Without this vital lifesavers support – and our investments in safety and drowning prevention – more people would have lost their lives last year. £667,307 FINANCIAL SUPPORT Just one example of how people raised funds last year was In 2018 we invested an extra £6.7M in our lifeboat rescue service, by taking part in high-profile community fundraising events raised a 5.4% increase on 2017 (see the financial review on page 32). like Mayday and Fish Supper. Debbie Hales, who hosted a Fish This bolstered much-needed support for our people at the sharp Supper event with her son Michael, says: ‘It’s an easy way to end and helped to keep them safer as they saved others. The get involved. You can hold a Fish Supper in the comfort of your majority was spent on ensuring that lifeboats, property and own home, raising money for a great cause with your family landmarks equipment were maintained to the standards required to protect and friends.’ Debbie and her family say they feel indebted to the turned yellow our crews in all weathers – on and offshore. With 93% of total RNLI after Blackpool lifeboat volunteers rescued her following 7 RNLI income coming from generous donations and legacies, our a jet-ski accident in 2003. It left Debbie with life-threatening charity relied heavily on dedicated volunteers and supporters to injuries, and her husband Ian sadly lost his life. She says: ‘The raise that money. And that need is ongoing. RNLI saved me – but they also saved a mum, grandma, auntie, and sister. I cannot thank them enough.’ 396-mile welly relay

London phone 1 box painted yellow station 45 build new lifeboats and rescue 220,000 15 projects craft constructed pin badges ordered

15 16 Supporting lifesavers Supporting lifesavers

LEGACY LIFELINES PROTECTING LIFESAVERS STAFF SUPPORT A UNIQUE WAY TO FUNDRAISE Last year we worked with technical clothing brand Helly The vast majority of our lifesavers and fundraisers are volunteers RNLI supporters Belinda and James Richardson decided last Hansen to supply our people with the very best protective kit. so we need to help them in everything they do – and keep them year to have a break from RNLI coffee mornings and bring- And it’s not just kit the company are providing, we entered as safe as possible while they do it. In 2018 we recruited more and-buy sales. Instead they took on a unique challenge, into a 5-year strategic partnership that will see them deliver than 50 new people specifically to support them at the coast. combining their three great passions: the RNLI, their Porshe 65 drowning prevention messages to their customers worldwide, New staff included full-time crew, fleet mechanics, system 911 and the coastlines of the UK and Ireland. Their once-in- as well as supporting our fundraising and safety campaigns. technicians, assessor trainers, area lifesaving managers, coastal a-lifetime trip took them to all 238 RNLI lifeboat stations in Nobody knows this new kit better than lifeboat crews support managers and regional improvement managers. We also 911 hours. – they played a key role in testing it and are confident that set up a system support team to provide them with training and James says it was the bravery of the volunteer crews ponds modified to the new features offer greater protection, flexibility and support on RNLI business systems and IT. that inspired them to fundraise in aid of our charity. ‘We’ve teach children to swim comfort. We started rolling it out in September and 40 always been fans of the RNLI,’ explains Belinda. ‘What the station crews had received a set by the end of 2018. We also INTERNATIONAL SUPPORT volunteers do is so incredible. We are both retired and this is in Bangladesh trialled and tested a new collection of lifeguard clothing and We continued supporting and training local lifesavers in high- our way of putting something back’. introduced new protective workwear for land-based staff. risk countries last year. This included working with the BFSCD The challenge started at 9.11am on 23 August 2018 from Our lifesavers need somewhere to dry their kit (Bangladesh Fire Service & Civil Defence) to strengthen their Teddington Lifeboat Station in London. They drove anti- after a rescue, house or berth their lifeboats and base response to large-scale floods. In 2017 we trained new assessor- clockwise, meeting hundreds of lifeboat volunteers along the their operations too. In 2018 we completed 15 station trainers within the organisation who, in turn, trained firefighters way. They weren’t quite fast enough to meet Chiswick lifeboat build projects across the UK and Ireland. Many involved in flood rescue skills. By the end of 2018 there were 16 flood crew, who were dashing out on a shout as the couple arrived. substantial works to adapt existing stations for new lifeboats trainers, who now plan to teach flood skills to more firefighters. They successfully completed their challenge at 8.11am on including Barmouth, Girvan, Hastings and Lytham St Annes. BFSCD flood response is now self-sufficient, with 240 fully- 30 September at Tower Lifeboat Station. Belinda and James 148 trained flood rescue operators across six districts. They’re already raised awareness of their favourite charity and more than putting their new skills to good use and have saved several lives. £14,000 along the way. lifeboats refitted, modified or repaired

PROVIDING THE KIT As well as building new Shannons, ALC staff carried out major refits, modifications or repairs to 19 all-weather lifeboats and hovercraft. Meanwhile, staff at the Inshore Lifeboat Centre built 44 new craft – including lifeboats, boarding boats and Leverburgh lifesavers were thrilled to place their new Shannon after them in memory of the times they spent sailing there. lifeguard rescue watercraft – and carried out refits or repairs to class lifeboat on service last May, following months of Another generous gift, left in the Will of Mary Aida MacLeod another 129. Together, our staff managed and maintained over preparations and rigorous training with RNLI trainers and MacAskill, helped to pay for the crew’s new pontoon. 2,200 pieces of lifesaving equipment and supplied and serviced 2,200+ assessors. Stella and Humfrey Berkeley was one of six Shannons Coxswain Angus Morrison says: ‘The Shannon really has hundreds of lifejackets. Our logistics team clocked up more than built at the RNLI’s All-weather Lifeboat Centre (ALC) in 2018 enhanced our lifesaving capability in the wide area we serve. 906,000 miles, transporting rescue craft and lifeguard huts. And pieces of lifesaving equipment and was only possible thanks to several generous legacies and As well as its increased speed, range and manoeuvrability, the Lifeboat Support Centre supplied around 100,000 parts to managed and maintained donations. One was from the estate of Humfrey and Stella it brings significant improvements to the safety and welfare coastal and production teams – and more than 267,000 items to Berkeley, who asked that a new lifeboat in Scotland be named of our crew.’ RNLI shops and branches. 17 18 Supporting lifesavers Supporting lifesavers

‘It’s very humbling to know RNLI LIFEBOAT STATIONS, ‘I didn’t realise how much LIFEGUARD UNITS AND that you’ve been part of FLOOD RESCUE TEAMS training there was’ IN 2018 saving two people’s lives’ Scotland 46 lifeboat stations TRAINING FOR THE REAL THING 7 lifeguard units Being a lifesaver is not just about the times out on a shout. 1 flood rescue team It’s the hours spent on training exercises, practising skills and techniques so that, when the call for help does come in, crew are able to respond quickly and intuitively to save lives. Volunteers come to RNLI College in Poole, Dorset, to Northern Ireland take part in specialist crew training courses. But the majority 10 lifeboat stations of training takes places at the coast. 12 lifeguard units Cathy Holland, who trained to be a crew member in 2018 1 flood rescue team at Ramsey Lifeboat Station, says: ‘I didn’t realise how much training there was and how Isle of Man England comprehensive it would be! It’s twice a week. You go 5 lifeboat 107 lifeboat stations down as often as you can. You need to do a minimum of 12 stations SAVING LIVES AT SEA 184 lifeguard units exercises a year – quite a commitment when you’ve got a Last year, our volunteers and staff helped to create 2 flood rescue teams family and a full-time job. another series of BBC Two’s Saving Lives at Sea. More than Ireland ‘Some nights I go home absolutely buzzing because 1.5M people watched each episode, raising awareness of 36 lifeboat stations Wales I’ve pushed myself out of my comfort zone. The people are our dedicated volunteers and showing our lifesavers in 30 lifeboat stations brilliant, supportive and encouraging. They look out for you. action. In one episode, Whitstable lifeboat’s new recruit 39 lifeguard units ‘Helping someone else in need is the ultimate aim. Ruth Oliver had her first lifesaving call out. 3 flood rescue teams You could save somebody’s life. Even in winter when I’m Two lifelong friends, Mick and John, were fishing tired, I think: “Yes, I want to go down to the station and do 2 miles from shore in June 2018 when their boat was Channel Islands some training.”’ capsized by a rogue wave. The men were in the water for 4 lifeboat stations 2½ hours. Mick and John had just said their goodbyes and 6 lifeguard units were ready to give up when the lifeboat crew arrived. Ruth says: ‘It was amazing that they were still alive. They were exhausted and freezing cold.’ Ruth and the crew hauled the men out of the water and into their Atlantic 85 lifeboat. 367,220 On the way back the volunteers worked hard to keep the hypothermic pair conscious. ‘They were slowly items despatched to lifeboats, lifeguard dropping,’ recalls Ruth. ‘You’ve just got to try and keep stations, branches, them with you.’ Back on dry land, the crew handed them huts and other large safely over to the ambulance service. Ruth reflects: ‘It’s shops and lifeboat 440 items of lifesaving very humbling to know that you’ve been part of saving production teams equipment transported two people’s lives … but it’s also what we’re here to do.’ Lowestoft volunteers tackle rough seas with their Shannon class lifeboat Patsy Knight, amid ‘the beast from the east’ in March 2018

19 20 Preventing drowning

Nobody should drown. We know that the vast majority of drownings can be Preventing avoided so long as people take the right steps – and our lifesavers are on hand to rescue those that don’t. Last year we saved lives in so many different ways drowning and our brave crews and lifeguards remained at the heart of that work.

RESCUE In 2018 our lifesavers continued to provide a ring of safety around the UK and Ireland from 238 lifeboat stations and 248 beaches. And they were busier than in 2017, largely due to the hot summer THE DROWNING CHAIN bringing more people to the coast. Our volunteer crews launched 8,964 times, aided 9,412 people and saved 211 lives. Tower and Plymouth were our busiest overall station and coastal station respectively, with inshore lifeboat crews carrying out the majority of launches overall. Our hovercraft crews proved invaluable too. One example was in August when hazardous mudflats prevented lifeguards reaching a man in serious trouble. Hoylake volunteers 1 1 2 2 came to the rescue with their hovercraft and specialist mud rescue 3 equipment. With the man stuck up to his knees and the tide 3 4 coming in, the crew worked fast to free his legs while supporting 4 5 6 Drowning him with boards. He was safely aboard the hovercraft before the 5 area flooded. Crew Member Dave Noble says: ‘The mud around 6 Drowning the Wirral coast can be very dangerous. If it hadn’t been for the Lives are preventing people cannot places are not safe/ people cannot – or do drowning is look after – or prompt and coordinated efforts of all the emergency services, the at risk people are isolated not – behave safely outcome could have been very different.’ because ... not a priority save – themselves RNLI lifeguards attended 19,449 incidents, aided 32,207 people and saved 118 lives. One example was a mass rescue at Watergate Bay in June when our lifeguards spotted a large group of swimmers being pulled out of the safe swimming zone by a strong To save more lives, we need to work back up that chain to influence, educate and supervise people – as well as rescue them. current. One was having an asthma attack which caused him to The RNLI’s lifesaving strategy sets out activities in each link of the chain that will help us reach our 2024 goals. panic. Senior Lifeguard Kerk Letham brought him back to shore and monitored him while he took his inhaler. Meanwhile, Kerk’s colleagues rescued four more swimmers and helped a further ten. Lifeguard Supervisor Mark Priem says: ‘They were doing the right Rescue is just a small component of a lifeguard’s role and, thing by swimming between the red and yellow flags but weather throughout 2018, our lifeguards across the UK and Channel and tides can change suddenly, like they did that day.’ Islands carried out more than 3.4M preventative actions. 21 22 Preventing drowning Preventing drowning

RNLI LIFEBOAT LIFEBOAT LAUNCHES LIFESAVING ACTIVITY 2018 9,000 STRATEGY 8,900 8,800 8,700 What are the objectives Lifeboat launches 8,600 High to Low and activities that 8,500 will help us reach our 8,400 lifesaving goals? 8,300 Drowning is Risk is identified 8,200 8,100 recognised and mitigated as a global and local locally, nationally 8,000 problem which and internationally 0 can and should 2013 2014 2015 2016 2017 2018 be prevented

1 2 3 4 5 6 Drowning REDUCE REDUCE COASTAL THE RISK LIFEGUARD INCIDENTS OF DROWNING IN FATALITIES 25,000 IN THE UK AND COUNTRIES THAT ACCOUNT FOR 25% OF IRELAND BY 50% 20,000 BY 2024 GLOBAL DROWNING 15,000

Targetted To provide 10,000 interventions emergency are in place to help 5,000 those most at risk response services which effectively 0 mitigate the 2013 2014 2015 2016 2017 2018 identified risks

23 24 Preventing drowning Preventing drowning

JUST ONE INCH OF WATER ROCK ANGLING Drowning claims an estimated 360,000 lives around the world every year, Neal Dews has been angling in Cornwall for 21 years, over one-third of which are children*. These deaths are largely preventable. without a lifejacket. Last year he started wearing one and it Achieving a significant reduction in drowning around the world is a big saved his life. 8,964 3.4M+ challenge. It’s not currently on the radar at an international level. We’re So what made Neal decide to wear a lifejacket? In 2018 working with partners to make drowning prevention a global priority. Neal watched an RNLI video of the respected angling writer, lifeboat launches (8,436 in 2017) preventative actions by RNLI lifeguards (3.3M in 2017) In summer 2018 we found an eye-catching way to get this issue Henry Gilbey. In that video, Henry and some fellow anglers onto the international political stage. We organised a stunning photo leap into the RNLI’s sea survival pool to discover what it’s like exhibition at the United Nations headquarters in New York, based to plunge into cold water, with and without lifejackets. When on the notion that a child can drown in an inch of water. It featured Neal’s wife, Zoe, saw the film she was inspired to buy Neal a photographs from three countries with some of the highest drowning lifejacket as a birthday present. 41,619 rates in the world: Bangladesh, Fiji and Thailand. Visit RNLI.exposure.co/ On 4 November 2018, Neal was angling at Newquay’s people aided by lifeboat crews 313,053 to see more pictures. Tolcarne Beach, wearing his new lifejacket. A big wave knocked and lifeguards (32,116 in 2017) preventative actions by SeaSafe lifeguards On the exhibition launch day the RNLI worked with the governments him off his feet. Neal remembers it was ‘like putting a rag doll in Bangladesh (235,026 in 2017) of those countries to organise two events on global drowning at the in a washing machine’. Almost immediately, the lifejacket United Nations headquarters. We looked at the role of drowning inflated, bringing Neal’s head back to the surface. Eventually he prevention in creating more resilient communities across the world, in managed to grab a rock and clambered up the beach to safety. line with global development goals. RNLI International Director, James ‘If it wasn’t for that lifejacket, I wouldn’t be here,’ Neal Vaughan, says: ‘It was a great day in our drive to get political recognition states. ‘It saved my life.’ for the importance of drowning reduction.’ Neal has since met Henry Gilbey and the RNLI team who 46M+ made the video and is now helping us spread the lifejacket 329 *World Health Organization, 2015 message to others. lives saved by RNLI crews people reached with our and lifeguards (248 in 2017) ‘float to live’ safety message

‘The night just blew STORM FORCE RESCUE ‘If it wasn’t EARLY INTERVENTION technique saved their lives. In 2019 our core message remains the wear in 2018. We also started seeing positive behaviour change in A storm force 10 hit the west coast of Scotland in late July 2018. Tobermory Our drowning prevention programmes are based on solid research same but we will also specifically target teenagers, as research divers as a result of our diver health wellpoint kiosks, and worked up out of hell’ Crew Member Tony ‘Kiwi’ Spillane recalls the weather was fine during the day for that and expert knowledge – and we continue to work with partners to shows that there is a gap in understanding between what young in partnership with diving health charity DDRC Healthcare to but that ‘the night just blew up out of hell’. identify the risks, make the right interventions and measure the men think is relevant to them and what statistics show us. This install another kiosk at the Deep Diving Centre in Plymouth. There was a mayday from four people on a yacht at Loch Aline, 13 miles south lifejacket, results. There are a number of specific groups most at risk in the ‘mates save mates’ campaign will encourage and empower young Fishermen from across the UK and Ireland took part in of Tobermory. Their anchor wasn’t holding and they were heading for rocks. UK and Ireland – young men, in particular. men to save a friend’s life by sharing our float to live advice. exercises in our survival pool at RNLI College to improve their Tobermory volunteers launched their lifeboat into the storm. They I wouldn’t recovery and survival techniques and we delivered specialist kit reached Loch Aline. ‘It was grim,’ recalls Kiwi. ‘The wind was howling over the RESPECT THE WATER COMMUNITY SAFETY training to another group from Wales. In July, bar staff of By hill and the rain was horizontal.’ be here’ Last year we reached around 46M people with our ‘float to live’ Our Community Safety Team continued to develop, pilot and the River Brew Co saved a man from the River Tyne using Coxswain David McHaffie couldn’t risk taking the all-weather lifeboat message through a range of media, partnerships and events. Half evaluate lifesaving interventions by supporting volunteers and throw bag skills they learned from us just weeks earlier. RNLI into the shallows, so he decided to launch the inflatable Y boat to pass a tow of all young men in the UK (and 63% in Ireland) now say they community staff with knowledge and resources, and working Community Safety Partner Nick Ayers says: ‘Research tells across. But the tow caught on something and had to be cut and made fast are aware of our Respect the Water campaign. And relevancy of with partners in key locations. us that around a quarter of all adult drowning victims have once again. They persevered and the coxswain and crew did a sterling job. the campaign message is improving among the target audience, Last year they spoke with around 55,000 people about alcohol in their bloodstream. Our water safety training delivered The slow tow back was challenging too. With a narrow entrance lined with with 69% of UK males aged 16–39 agreeing that the messaging is water safety and carried out more than 4,500 lifejacket checks. with partners at the Fire Service gave the bar staff knowledge rocks, Loch Aline can be ‘a horror to get out of’ says Kiwi. But they managed relevant to them – the highest since the campaign began in 2015. Changing behaviour takes time but our annual lifejacket and equipment needed to save a life – and the confidence to it. ‘Every time something was thrown at us, we figured it out.’ 2½ hours later, Best of all, we heard from more people who told us that the float observation study showed a slow but steady increase in lifejacket react quickly.’ they got back to Tobermory, just as the seas calmed. 25 26 Building for the future

Last year we laid more foundations for the future. We invested Building for in people, equipment and systems – and investigated new ways of manufacturing, fundraising and enhancing our brand.

the future RNLB BRIANNE ALDINGTON RNLI 13-21

ADDITIVE MANUFACTURING 3 The RNLI currently holds a huge number of spare parts in case new renewable energy they are needed urgently by lifesavers. But it’s an expensive business, costing millions of pounds to hold, transport and installations (4 in 2017) dispose of inventory every year. In 2018, thanks to funding from RNLB BRIANNE ALDINGTON Bournemouth University, we began research into the benefits of RNLI 13-21 additive manufacturing, which could make our supply chain more efficient by reducing the number of parts we hold. Additive manufacturing is the process of creating parts to order from digital blueprints. Commonly known as 3D printing, this type of manufacturing would have a positive impact on our sustainability, in both financial and environmental terms. It is capable of producing complex parts from materials like steel, SHEENA LOUISE SHEENA aluminium and composites; it cuts down on waste; has shorter B-000 lead times; and eliminates availability problems. We’ve already identified components we can produce in this way and will continue to pursue this technology in 2019.

RENEWABLE ENERGY LIFEBOAT PRODUCTION In 2018 we continued to reduce our negative impacts on the Last year we built 28 new lifeboats, which are already in service environment and took advantage of renewable energy sources £129,800 and saving lives around our coasts. Our All-weather Lifeboat wherever practical and affordable. We installed 85kWp of solar Centre teams in Poole are planning to build six more Shannon photovoltaic panels across three RNLI sites in England and Wales, savings made and money raised from class lifeboats in 2019, and will also spend more hours on refits bringing the current total installed to 630kWp. Last year this and modifications to our existing fleet. In all, their output will be delivered savings of £44,600 and earned us a further £85,200 renewable energy (£145,953 in 2017) the equivalent of four external boatyards. We also plan to build in power sold back to the grid. We also launched the 20 Ways to 22 new inshore lifeboats and refit a further 56 at our Inshore Green your Lifeboat Station guide to further encourage our people Lifeboat Centre on the Isle of Wight. to protect the environment and make efficient use of resources.

27 28 Building for the future Building for the future

THE WIDER BENEFITS With technology advancing so quickly, people are adopting INNOVATION Our stations, craft and dedicated, skilled people add up to new behaviours in the way they shop, sell and donate. And since RNLI volunteers are often called out in conditions that would something greater than saving lives on the water. The way we’re an increasingly cashless society, fewer people are carrying have any sensible seafarer heading for the nearest sheltered in which we operate and interact adds a broader value to coins and notes to put in the collection boxes they pass. So in harbour. So we have a duty to provide them with everything those we come in contact with. 2018 we explored the future of donations by getting together we can to keep them safe while they save others. Just one example of the wider public benefit we with charity, finance and technology experts to look at what In 2018 we investigated how augmented reality (AR) might brought last year was when parts of the UK and Ireland St Peter Port volunteers are set to trial an inshore factors they thought would impact donations over the next be used to deliver important navigational data to crew through were under a blanket of snow in March. Many people were Atlantic lifeboat in addition to their all-weather Severn 10 years. We are still in the early stages of this work but hope it headsets while they are looking at the real world around them. stranded for days without essentials and, in Anstruther, will pave the way to a world where charities allow supporters to We worked with a technology partner to develop a solution our lifeboat volunteers trekked on foot to deliver medicine donate exactly how, when and where they like. using the popular Microsoft HoloLens system and successfully to those who weren’t able to safely make it to the COASTAL REVIEWS tested a simple prototype to demonstrate how digital pharmacy themselves. Crew Member Martin Macnamara Last year our lifesaving service was continuously reviewed through *closed defined benefit pension scheme. See note 11 on page 67. information could be displayed on existing AR headsets. says: ‘The weather had been severe. We saw there was reporting, but our Coastal Review team visited 40 lifeboat stations In collaboration with the Maritime and Coastguard Agency a need and were happy to help members of the and their surrounding communities too. These visits, led by the INTERNATIONAL SUSTAINABILITY (MCA) and the drone industry, we also ran a technology community who wouldn’t have been able to get their Chair of the Operations Committee, helped to measure our The RNLI has been working with SeaSafe, an initiative in challenge where we explored the use of drones across a prescriptions otherwise.’ lifesaving performance against RNLI strategic targets and configure Bangladesh, to build a lifeguarding and community safety service variety of search and rescue scenarios. We demonstrated our lifesaving assets for the future. For example, a recent visit for Cox’s Bazar. Since it began in 2012, the team have saved how they could be used to improve search operations ‘We were happy to help confirmed a requirement for an inshore lifeboat at Barry Dock, more than 215 lives and no one has drowned in the lifeguarded and reduce risk to our volunteers. As a result of this work, alongside the station’s Trent class. We looked at enhancing cover areas. In 2018 the RNLI and the Centre for Injury Prevention and recommendations were made for a potential operational trial members of the community’ at a number of other stations too including Blyth, Red Bay and Research, Bangladesh started developing a sustainability plan by the MCA in 2019. Dartmouth, which all trialled additional rescue craft alongside that will enable the whole SeaSafe project to be self-sufficient. their existing lifeboats. A relief Shannon will be allocated to At the RNLI, we support pride in our communities Clifden later in 2019 to follow on from and extend the station’s The ‘casualty’ in this joint search and rescue exercise successful Mersey trials last year, and St Peter Port are looking to by the RNLI and MCA was located by drone trial a B class Atlantic in addition to their Severn. INCLUSION AND DIVERSITY Our Operational Policy Team also introduced operational The future sustainability of our organisation depends on our and just how valuable it is to their wellbeing. Last year an Ipsos evaluations at the start of 2018, concentrating on all aspects of attracting a diverse range of people – and if we want to retain report showed that only 46% of the UK public, who were aware lifesaving delivery at lifeboat stations. In 2018 the team made them, our behaviour needs to be inclusive too. Culture change of the RNLI, felt that the work of our charity was relevant to 43 of these 2-day evaluation visits which provided them with takes time but we have already begun work to encourage this them. Figures for the Republic of Ireland were similar. vital data on casualty trends that will help inform our lifesaving shift. In 2018 staff networks for disability, women, LGBT+ and This presents us with a challenge when it comes to service in the future. young professionals were active across the RNLI, and 385 staff attracting people willing to give their time or money, or help received I&D training. We also demonstrated our commitment to spread our safety messages. So, last year, we started FUTURE FINANCE equality by disclosing the RNLI’s gender pay gap details. At -3.1%, planning how to develop the public’s perceptions of our The RNLI regularly reviews its financial plans and manages risk based on an average hourly rate for men and women, this means work and broaden our charity’s relevance, particularly with accordingly but securing funding for the future is an increasing our average hourly rate is slighter higher for women. younger people. challenge. Our most significant financial risks are investments, See the Governance section for more on inclusion and diversity. While maintaining our reputation as rescue experts, in pension liabilities* and the uncertainty of fundraising income. 2019 and beyond, we will work to enhance our recognition as Although recent changes in policy and reserves management BRAND REPUTATION a trusted and responsible charity and establish a reputation for helped us manage some of those risks, external economic The RNLI has a great reputation with the public but, in an being truly collaborative and a thought-leader in all areas of the pressures like Brexit mean we need to step up fundraising activity increasingly competitive charity marketplace, we cannot relax our drowning chain. This brand reputation work will be vital to the across the whole of our organisation and improve our efficiency. efforts to explain to more people why our charity is important future sustainability of the RNLI. 29 30 Financial review

2018 was a challenging year financially for the RNLI. Legacy income reduced by Financial more than £8.5M (6.4%) as the money from estates took longer to come to fruition. Charitable spend (including capital spend) increased by £4.5M (2.8%) to reduce the risks to our lifesavers and keep them safe. At the same time, our investments reduced review in value by £10.1M during an uncertain economic climate. FOR THE YEAR ENDED 31 DECEMBER 2018

This meant our financial resources reduced by £28.6M in 2018 We remain in a healthy position, having absorbed these spends on its operations each year, how it is funded, and the which we managed through our free reserves. This is the reason challenges with sound financial management. The RNLI will movement in our financial resources. It is based on the financial we have reserves, to overcome such short-term challenges. continue this focus in the coming years to remain financially statements on pages 51 to 53, but we have adjusted it to show Looking at our 3-year plans, and recognising the uncertain well-governed. the net income that is available for charitable expenditure. economic environment, we have employed a new fundraising We have also reflected the actual capital costs, rather than director to ensure our future income meets the needs of the FINANCIAL ANALYSIS depreciation, in the charitable spend. Further analysis on how this organisation. Similarly, we will be re-energising our ongoing focus The analyses on this page have been produced to simplify the reconciles to the financial statements can be found on note 19 on on efficiencies to reinvest in our lifesaving work. financial statements and show how much the RNLI actually page 77.

CHARITABLE SPEND INCOME FINANCIAL RESOURCES 2018 2017 2018 2017 2018 2017 Total Total Total Total Total Total £M £M £M £M £M £M Lifeboat service 43.4 40.0 Legacies 122.5 131.0 Net income less charitable spend (6.3) 7.4 Lifeboats, property and equipment 86.5 83.2 Donation 51.5 49.6 Investment (losses)/gains (10.1) 10.5 Lifeboat rescue 129.9 123.2 Trading (net) 5.5 5.6 Stock increase (1.3) (1.2) Lifeguard rescue 19.7 21.0 Charitable trading 3.8 3.7 Debtors (increase)/decrease (4.2) 1.8 International 3.3 2.9 Investments (net) 1.9 1.9 Creditors decrease (6.7) (6.9) Safety, education and awareness 10.6 11.9 Other 1.4 2.0 Investment/bank (decrease)/increase (28.6) 11.6 Total charitable spend 163.5 159.0 Total Net Income 186.6 193.8 Cost of generating income (29.4) (27.4) Net income available for 157.2 166.4 charitable spend

31 32 Financial review Financial review

CHARITABLE SPEND estates. The appointment of our new fundraising director will allow FINANCIAL RESOURCES A thorough review of our strategic investment policy and Charitable spend increased by £4.5M (2.8%) in comparison greater focus on securing fundraising income streams for the future. Investments and bank holdings reduced by £28.6M in 2018. asset allocation is underway in 2019. This will both reflect with 2017, as we strive to improve the lifeboats, equipment and On a positive note, it is good to see an increase of £1.9M The majority of this was from investment losses of £10.1M, the changes to our reserves policy and look at the nature and working conditions for our crews to keep them safer than ever (3.8%) in donations, thanks in the main to two £1M unplanned while £6.3M was due to an operating deficit where net income implementation of the recommendations we receive from our before. This work is in areas such as: gifts from trusts, but also some excellent results from appeals available for charitable spend reduced by £9.2M and costs advisers, with the aim of ensuring our investment management in 2018 from our generous supporters. This increase will need increased by £4.5M in 2018. We reduced the creditors balance arrangements are optimal going forward. • Our lifeboat fleet and equipment – the average all-weather to continue over the next few years for the RNLI to keep its by £6.7M, mainly in payments to the defined benefit pension lifeboat is 18 years old. As a result, more was spent on Charitable spend lifesavers safe and save more lives. scheme of £9.4M in the year. We also saw debtors increase by PENSIONS maintenance, both scheduled and unscheduled, as well as £4.2M – with legacy accruals increasing by £2.0M and VAT and The RNLI operates a defined benefit pension scheme, which was £163.5M lifeboat replacements and the associated work on stations Gift Aid payments due from HMRC increasing by £1.5M, mainly closed to new entrants from 1 January 2007. On 30 September to accommodate changes to the lifeboat. We also started due to a delay in the payment of Gift Aid. Finally, there was a 2012 it was also closed to future benefit accrual, to help mitigate replacing crew equipment, providing crew with new Gecko £1.3M increase in stock, to meet the demand of our trading any future liability. helmets and better crew kit from Helly Hansen. online again and following the review and reduction of our slow- Despite this the RNLI, like all employers who ran such • Risk management and increasing legislation – our moving stock provision. schemes, will continue to have ongoing liabilities, which are the lifesavers put their lives on the line in increasingly risky subject of review between the trustees of the pension scheme conditions and we spent more money than ever in reviewing INVESTMENTS and the RNLI’s own Trustees based on actuarial advice for those risks and minimising them as much as possible. Net income 2018 was a difficult year in the world of investments, with nearly both parties. The major investment was in improving our lifeboats and Lifeboat service 27% £186.6M all markets in negative territory – especially in the final 3 months The overall liability of £46.5M on the balance sheet is a the essential training to ensure that our crews are safe and Lifeboats, property and equipment 53% – and the RNLI experienced falls across all areas of its portfolio, reduction of £4.0M from the 2017 position. This is on the FRS102 competent. In 2018, the RNLI also spent money on ensuring Lifeguard rescue 12% except for property. The overall return on the portfolio for the basis for accounting purposes only. It is a prescribed basis that there is adequate cover for crew members (both volunteers International 2% year was a loss of 2.8%, which includes net investment income of allows comparability across the sector, but does not necessarily and staff) so that they are not overloaded. We also made Safety, education and awareness 6% £1.9M and the reduction in the portfolio valuation of £10.1M. reflect the position negotiated between RNLI Trustees and a significant investment in 2018 on reducing fire risks at In the last 5 years, when the markets have been more benign, the trustees of the pensions scheme from the actuarial advice lifeboat stations as the urgency of the work increased in the We also expanded our international work with an additional overall returns have been £42.4M, including the 2018 result. provided. See note 11 on page 67 for further details. wake of the Grenfell disaster. investment of £0.4M (13.8%). This allows us to make the impacts This represents an average annual return of 3.9%. on drowning prevention worldwide as described on page 5, This focus will continue during 2019 with further investment in working with our partners and gaining insights to support the UN Legacies 66% crew safety through equipment, training and support. This has resolution on drowning prevention. Donation 27% been made possible by the £50M of annual savings created since In contrast, our expenditure on water safety, education Trading (net) 3% 2014 through our continuous improvement and procurement and awareness decreased by £1.3M (10.9%). The RNLI remains Charitable trading 2% saving initiatives. committed to its prevention work but, in 2018, we reprioritised Investments (net) 1% our work to concentrate on areas known to have a greater impact, Other 1% such as sea anglers and divers.

INCOME AVAILABLE FOR CHARITABLE SPEND The total income available for charitable spend decreased substantially by £9.2M (5.5%) in 2018 as we have seen the first £28.6M £4.5M decline in legacy income for 5 years. Anticipated legacy revenue and £8.5M increase in charitable pipelines for 2019 suggest this is a short-term timing issue. Executors decrease in legacy reduction in financial are struggling to sell properties in the current climate and estates spend in 2018 income in 2018 resources in 2018 take longer to process, with increasing complexities in finalising A new Shannon class lifeboat enters the water at the All-weather Lifeboat Centre, Poole 33 34 Financial review Financial review

FUNDS ANALYSIS future, and accounts are prepared in the knowledge that the RNLI FUNDS POLICY Organisation – will ensure a steady stream of income, both 2018 2017 Change Ratio is a viable organisation. INVESTMENT STRATEGY In 2018, the Trustees carried out a fundamental review of the now and in the future, from its investments to give more £M £M % % The RNLI’s investments are held either for endowed/ RNLI’s Funds Policy. In conducting this review, they took into certainty on income for the RNLI’s essential services. This FINANCIAL POLICIES restricted purposes or as a reserve against any future account the changing needs of the RNLI, improved financial fund is very much in its early stages, but there have already Endowed funds 15.9 16.4 (3%) 2% CHANGE IN ACCOUNTING POLICY shortfall in income against expenditure. We seek to information, best practice and Charity Commission guidance. been legacies and donations pledged and the Trustees have Restricted funds 127.7 123.1 4% 18% In 2018 the RNLI changed its accounting policy regarding legacies. maintain and, if possible, enhance the real value of The new policy is detailed in note 1h on page 58, with the main also set aside a sum to initiate this within designated funds. Fixed asset funds 461.1 454.7 1% 65% Legacies are now accounted for based on settlement of the estate our funds with investments that are in line with our changes detailed below. • Restricted funds (£127.7M) – these are held under trust law Designated funds 25.0 79.3 (68%) 4% or receipt of payment, whichever is the earlier. Where pecuniary business plan. and so can only be used for particular purposes, as specified or Free reserves 125.8 99.0 27% 18% legacies are of a size that is apparent they will be paid, these To achieve this, we maintain an appropriate balance FUND ACCOUNTING agreed with the donor. For example, we would have an appeal are recognised at the point of probate. We believe the new between maximising long-term returns and avoiding At the end of the year the RNLI held total reserves of £709.0M. for a lifeboat and these donations would be held until we Pension reserve (46.5) (50.5) (8%) (7%) policy is preferable to ensure we focus on short-term liquidity undue risk and volatility in capital values. To this end, The RNLI’s funds are held for a variety of purposes, to ensure that construct that lifeboat. The only change is in the basis of legacy Total funds 709.0 722.0 and financial risk. our investments are made in a well-diversified portfolio, the organisation can operate as a going concern in the future and accrual (as detailed in the free reserves section) that reduced Previously, legacy income was recognised once probate had with the risk spread across different asset classes and also fulfil its legal obligations. The funds and effect of the review the 2017 balance by £11.7M for those accrued legacies that been granted and where sufficient information has been received styles of investment management. Investment manager is summarised as follows: were restricted. FINANCIAL HEALTH on an estimated basis with regard to the cash. The 2017 numbers performance is measured against established market • Designated funds (£25.0M) – these are set aside by As of 31 December 2018 the RNLI had consolidated net assets shown in these accounts have been restated to reflect the benchmarks suitable for each investment class. • Fixed asset funds (£461.1M) – these have not changed and the Trustees for a particular purpose. The Trustees have of £709.0M, primarily representing fixed assets of £461.1M and change, the effects of which are shown in Note 17 on page 76. continue to make up the bulk of assets held, representing decided that there is no longer a need for the planned investments of £249.7M, which is a reduction of £28.2M from the operational assets of the RNLI, without which we could capital expenditure fund, the fund that was held to assure 2017. Total funds decreased by £13.0M, with an operating deficit INVESTMENT POLICY not operate. The vast majority of these are the lifeboats, contractors on longer-term projects that we have the funds of £6.3M and investment losses of £10.1M, following the gains The RNLI’s funds (excluding fixed assets) are substantially held INVESTMENT CRITERIA launching equipment and operational properties, such as to complete that project. The advent of the All-weather of £10.5M last year. However, free reserves have increased by in investments, predominantly in UK and overseas equities, bonds The Trustees have considered carefully the requirements of lifeboat stations and lifeguard units. Lifeboat Centre took away the need for this fund for lifeboat £26.8M, due to the change in reserves policy and the release of and real estate. The RNLI’s Investment Policy is reviewed annually by the Statement of Recommended Practice (SORP) and the • Endowed funds (£15.9M) – these are split between construction and, at the same time, our financial planning has some designated funds by the Trustees. the Investment Committee and with our investment advisers. Charity Commission’s revised guidance note CC14 (issued permanent, which has not changed, and expendable endowed improved to provide greater certainty on the funding of our The RNLI’s Trustees ensure the overall health of the We seek to adopt a cautious, prudent and well-diversified in October 2011) and continue to conclude that they do funds. The Trustees have decided to set up a new Lifesaving capital projects. For 2018, the Trustees have designated £25M organisation by managing our free reserves (the sums retained investment stance that balances potential return with not believe there is any listed investment adverse to the Endowment Fund, within the expendable endowments, to to be passed across to the RNLI Lifesaving Endowment Fund to withstand any short-term financial risks). At the end of appropriate risk. At the same time, the Trustees are conscious purpose of the charity (saving lives at sea). help preserve the RNLI’s lifesaving services for the future. once it is set up. Crew Member Vanessa Shillings, Lowestoft 2018 these free reserves stood at £125.8M and, at 10 months’ that some level of volatility is inevitable with a good investment This fund – in the form of a Charitable Incorporated worth of charitable expenditure, they are at the upper end of strategy and endeavour to spread the risk across different asset The remainder of the RNLI’s funds are our general funds: the Trustees’ new requirement of 4–10 months, as described classes and between different styles of investment management. in the new reserves policy in the fund accounting section. Investments are held centrally by the independent custodian • Free reserves (£125.8M) – these are sums that are freely our investment advisers. This has meant the Trustees are They include £22.7M of accrued legacies, where money is only Northern Trust, who also measured performance during the year. available for general use. They are held at a level to comfortable to reduce this to a range of 4–10 months of accessible to us once the estate is finalised by the executor. The RNLI’s investments are substantially held in pooled funds, withstand any short-term financial risks, the main ones charitable expenditure, from the previous 6–18 months This shows that the finances of the RNLI remain healthy. some of which are index tracking funds and hence not actively being in investment markets, key sources of income (such as prescribed in 2017. At 10 months of charitable spend, free But we continue to operate in an uncertain economic managed. The policies of the managers of those active funds we legacies) and pension funding. Most of these funds are held reserves are at the upper end of the Trustees’ range and the environment and need significant investment for our lifesaving hold are reviewed on a rotational basis in respect of environmental, in investments, but they will also include any unrestricted RNLI is planning to reduce this over the next 3 years through services and our infrastructure. We depend more than ever on social and governance policies and all these managers are legacy values accrued, which will take time to be received. essential investment in our lifeboats and lifeboat stations. the public’s generosity to support our work in saving lives at signatories to the United Nations Principles of Responsible The funds policy review still recognised the need for free • Pension reserve – this represents the pension liability that is sea. The Trustees have reviewed the RNLI’s 2019 financial plans Investment. That said, we acknowledge that we have little scope reserves to cover short-term risk and we are now able to managed separately to our free reserves as a long-term liability. (which extends to 2021), updated on an annual basis, as well to influence the investment discretion of the investment managers £127.7M £461.1M put a value to this, mostly from information provided by It represents a liability of £46.5M as valued under FRS102. as our principal financial risks. They believe that the RNLI has and would need to withdraw from any pooled fund if we identified restricted funds fixed asset funds sufficient resources to continue operating for the foreseeable an investment that conflicted with our charitable objectives. (can only be spent as donor directs) (including lifeboats and stations)

35 36 Governance

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

Good governance is fundamental to our sustained success as a charity. With it, we are best placed to deliver on our lifesaving Organisational purpose mission and achieve our objectives. It enables all our people to use their skills, along with our resources, to best effect. It helps The RNLI’s organisational purpose is our public benefit: we are the us ensure we are compliant with relevant legislation, reviews charity that saves lives at sea. We have specific goals for domestic the risks we are facing, oversees our standard of operations and accidental coast fatalities and the impact that we have globally. supports a positive culture. As an organisation, both domestically and internally, we We review our charity governance using the Charity track the number of individuals assisted, rescued and the number Governance Code – a relatively new benchmark for all charities of lives that the RNLI saves, often in collaboration with others. and standard for the charity sector. Here we show how we are This is reported formally each year in our annual report. As fulfilling our duties in line with the Charity Governance Code and an organisation we also have a set of metrics, the Quarterly The Royal National Lifeboat Institution (RNLI) was explain where there are still gaps. Performance Report (QPR), that covers our broader operations founded in 1824. It was granted a Royal Charter of In the 2018 review, we found that we were fully compliant and capabilities. These metrics are used by the Executive Team incorporation in 1860, with Supplemental Charters or working towards the large majority of the Code. It and senior management to guide the organisational priorities and granted in 1932, 1986 and further amendments in highlighted that we should consider how we can capture greater to report back to the Trustees on our progress in key areas. 1998, 2002 and 2011. feedback from our Trustees on the governance matters, our communications with our stakeholders, and whether we should DEVELOPING A SUSTAINABLE RNLI The RNLI is a charity registered in England and make our register of interests publicly available. The Trustees The RNLI has set a broad aspiration of zero carbon. As an Wales (209603), Scotland (SC037736), the will be discussing governance and the Charity Governance Code aspiration, this forms the ethos within which to operate rather Republic of Ireland (20003326) and the Bailiwick application in Spring 2019. than a fixed target to be invested in and measured against. of Jersey (14). The address of the registered office is West Quay Road, Poole, Dorset, BH15 1HZ.

STATEMENT OF PUBLIC BENEFIT The RNLI also has three wholly owned subsidiaries The RNLI provides public benefit as a charity by saving lives at sea. Our Trustees have complied with their duty in accordance with the registered in England and Wales, one of which is UK Charities Act 2011 to follow the Charity Commission’s guidance on the operation of this public benefit. The governments of the UK currently dormant. Each is managed by a board of and Ireland have a statutory duty to provide a maritime search and rescue service. The UK Coastguard and the Irish Coast Guard initiate directors (executive and non-executive) to ensure search and rescue, and rely heavily on the RNLI’s expertise and resources to save lives at sea in the UK, Ireland, Isle of Man and the that company and charity law requirements are met Channel Islands. The RNLI works independently of government and relies on donations to meet the cost of providing this public service. and business activities are properly managed.

37 38 Governance Governance

Success will be demonstrated by ensuring that activities, but also looking forward to ensure We aim to uphold our values, standards and charity sector. In last year’s RNLI Awareness and details would help to explain the RNLI’s actions We have a supply chain director and team, in energy usage by 2020. During 2019 a all activities consider their carbon impact and Leadership we remain sustainable as an organisation, able agreed policies wherever ethical, practical and Opinion survey report, we compared ourselves to others. including category managers, who are dedicated consolidated programme of behaviour change energy consumptions and seek to reduce them. to respond to changing trends and external possible. Our Trustees and Council govern and to four other charities and trust is high: for those We are committed to keeping our volunteer to developing and improving our supply chain is planned to broaden the reach of energy This is being achieved already through work The RNLI is ultimately led and governed by its factors. The Executive Team provide direction and scrutinise our decision-making to ensure we who are aware of the RNLI, 83% feel the RNLI and supporter data safe and we treat information strategy and processes. efficiency advice and engagement towards such as: wholly volunteer Trustee Board. The role of motivation to our people. They make regular visits meet the standards we set ourselves, as well is a trustworthy charity; of these 44% strongly security as one of our key risks (see page 43). The RNLI has a varied supply chain and achieving a 5% energy consumption reduction. • the implementation of renewable the Trustee Board is defined in our Royal Charter, to listen to the wealth of experience and ideas as those set by regulators such as the Charity agree. For those who have supported the a broad supplier base that supports the Efforts around the coast have achieved technologies and energy efficiency measures Bye-Laws and Governance Regulations. In generated from our volunteers and employees, to Commission and the Fundraising Regulator. RNLI either financially or non-financially, 54% ELIMINATION OF MODERN construction of our lifeboats, the running of significant localised energy consumption in all our new lifeboat stations as standard summary, the Trustees set and agree the overall help shape and continually improve what we do We record positive feedback and complaints, strongly agree we are a trustworthy charity. SLAVERY AND HUMAN RNLI College, the range of retail goods sold in reductions. The New Construction Team practice direction, strategy and culture of the RNLI. They and how we deliver our activities. the latter of which are declared annually to the The RNLI takes its responsibility for TRAFFICKING our shops, the marketing and advertising of our continues to grow our renewables portfolio • installation of renewable technologies on lead by example and support the chief executive Fundraising Regulator (see page 47). managing supporters’ donations very seriously The RNLI is committed to ensuring modern fundraising and prevention campaigns as well the towards the target of 1MW. During 2018, suitable existing sites in the daily delivery of our lifesaving plans and MEASURING OUR LEADERSHIP and applies rigorous financial controls to ensure slavery and human trafficking are not present day-to-day operation of the RNLI. We continually 80kWp of solar photovoltaic panels were • reviewing energy consumption at all sites activities, regularly monitoring our performance PERFORMANCE AVOIDING CONFLICTS funds are monitored, tracked and go to the in its supply chains. We are working with our ensure that these activities operate in the most installed in England and Wales bringing the and investigation of options for reduction against agreed measures. As they carry legal Our Trustees review their performance against OF INTEREST right places at the right time. In doing this, the partners and suppliers to ensure compliance ethical way that we can, by reviewing where we current total installed to 630kWp generating • where cost effective, procuring renewable responsibility, they also provide assurance the Charity Code of Governance and report on The RNLI operates a Conflict of Interest policy RNLI strives to make the supporters’ experience with the UK Modern Slavery Act 2015. source our goods and services, the processes energy which delivered savings of £44,600 and energy for our locations that we are meeting our legal and compliance this each year in the Annual Report and make for all the Trustees, Council members and simple and innovative, making it easy to donate We have introduced, and will continue to and governance we follow, and the methods of earned £85,200 in tariffs in 2018. Alongside • considering emissions and fuel use in the requirements. They evaluate the risks we carry this document available at RNLI.org. Where Trustee Board Committee members. in a way that suits all ages and individuals, develop, processes and procedures to manage manufacture and distribution. the solar generation we also have 28 heat recent vehicle fleet review and boarding and policies we have in place, with regular review appropriate, action plans are developed to improve Conflicts of interest are collated annually whether that’s online, by post, over the phone the way we obtain goods and services. In 2018 In 2019 we will be launching a Procurement pumps installed, which have delivered savings of boat outboard selections. and discussion through the year on these topics. their governance. In 2018 the Trustees continued and new declarations of conflict of interest are or in the community. we added clauses in our RNLI Contracts on policy and How to Buy guide which will set £30,900. During 2019 we plan to continue the to act on the actions identified by the external made and recorded at the start of every formal Transparency is also key to building trust Modern Slavery and Human Trafficking to ensure out the rules that govern all procurement roll out of renewable systems in all new build In the next 5 years plans will be made THE TRUSTEE BOARD performance review carried out in 2017. We are meeting. The Trustees and Executive Team review and demonstrating integrity, which we aim to that our suppliers are aware of their obligations. activity across the RNLI. Additionally, during and major refurbishments and to install further to investigate: COMPOSITION proposing to repeat this exercise every 3 years and all declarations in line with the Commission do whenever practical and possible. There will We undertake the necessary due diligence in our 2019 and into 2020 we will be rolling out and solar panels in suitable locations. • supply chain carbon emissions Names of RNLI Trustees who served at any time so will plan to do this again in 2020. disqualification criteria guidelines, the accounting be some occasions where there are legal and supply chain tenders and we are investigating the embedding good practice Supplier Performance • electric alternatives to our diesel boat during 2018 and/or were Trustees of the charity The Executive Team undergo an annual requirements for charities laid down in the ethical circumstances where we either cannot use of buying tools, such as Sedex Global, that Management and Contract Management across WASTE engines and outboard motors as at the date of this report, can be found on performance appraisal and they also seek feedback Statement of Recommended Practice (SORP) and be transparent because of legislation (eg data make it easier to capture, analyse and manage the RNLI. Throughout this work we have made The RNLI is committed to reducing waste and • re-tendering electricity suppliers towards a page 79 of this report. The Trustees all have through the annual engagement survey and HMRC ‘fit and proper persons’. protection) or we need to make an ethical data from suppliers, covering their ethical, our values and ethical standards clear. aspires to sending zero waste to landfill by fully renewable energy portfolio distinguished careers in a wide variety of fields. 360-degree feedback, supporting development. There were no externally reportable choice to protect an individual (eg the details environmental and social practices. 2024. We are developing our understanding of • trialling and adopting electric road vehicles They come from all parts of the UK and Ireland conflicts of interest in 2018. we give of a distressing rescue or fatality). During 2019 we will develop and roll out our ENVIRONMENT the types and quantities of RNLI waste and how • embracing innovative solutions as they arise. and many have a lifelong interest in the sea and We consider very carefully what we share and Supplier Code of Conduct, setting out the RNLI’s ENVIRONMENTAL MANAGEMENT to track our progress. To reach our goal we will passion for saving lives at sea. Integrity TRANSPARENCY AND when, particularly if it has an impact on a local minimum expectations of suppliers regarding We remain committed to eliminating or embed waste hierarchy thinking, which is to During 2019, a programme of engagement DONOR TRUST community or an individual. Transparency is business ethics, working conditions and human reducing our negative environmental impacts eliminate, reduce, reuse and recycle, and recover and behaviour change is planned to raise THE EXECUTIVE TEAM Integrity is about doing what is right, openly and As a charity, holding our supporters’ and the only one part of building trust – it must be rights. Through this code, we seek to ensure that and maximising the benefit from positive energy from waste, before considering disposal awareness of energy consumption, encourage The Executive Team, made up of nine individuals honestly. This can be for the charity as a whole, public’s trust is incredibly important. The RNLI followed up with clear actions appropriate to all our suppliers share our values and take a zero- environmental opportunities, wherever practical to landfill. actions that can be taken to make reductions and led by the chief executive, are the RNLI’s for its people (supporters, volunteers, staff and must demonstrate that it is a responsible each situation. For example, we would not share tolerance approach to modern slavery. and affordable. During 2018 we removed or replaced a and target the highest-consuming locations, senior managers and responsible for the day-to- those it helps) or for the public. It can mean and worthy recipient of supporters’ generous graphic details of a distressing rescue without In early 2019 we will be publishing our In 2018 we launched the 20 Ways to Green your number of single-use plastic items used at our to work with them with a defined target to day leadership and running of the RNLI and the using reliable data to put the right lifeboats donations and time. We work hard to ensure the consent of those involved, and then only updated Modern Slavery and Human Lifeboat Station guidance to further encourage and headquarters including, cups, spoons, straws, achieve a 5% year on year reduction in energy execution of the strategy and policies decided in the right locations, ensuring we spend our that we manage our money and other assets if it was not distressing for others, even if it Trafficking statement. support our people to protect the environment food containers, branded water bottles and consumption. by the Trustee Board. Their names can be supporters' generous donations appropriately, responsibly and do all we can to maintain meant the charity would gain valuable publicity. and improve our efficient use of resources. milk cartons. We also began to review our found on page 82 of this report and the overall or maintaining the high standards of operations our good reputation by being transparent, Equally, we might choose not to give details of ETHICS IN THE SUPPLY CHAIN retail products including their packaging and management structure on page 83. and behaviour essential to any modern trustworthy and responsible. a dispute between volunteers or staff while an The RNLI has a clear set of values that underpin ENERGY our marketing materials. Where practical As a team they are committed to not only emergency service and charity. Maintaining our We continue to hold one of the highest investigation or appeals process is going on so the strong ethical position expected from our We aspire to be carbon neutral for electricity and affordable we have started to remove focusing on the delivery of our core lifesaving integrity is critical to how the RNLI operates. levels of donor and supporter trust in the as not to prejudice a later decision, even if those supporters, volunteers and staff. and gas and to have achieved a 20% reduction single-use plastics and replace them with

39 40 Governance Governance

alternatives. This work will continue during The Committee has delegated authority to average hourly rate for men and women. This performance bonuses are paid. The RNLI does, will be launching a new Decision Support Hub accordance with United Kingdom Generally FINANCIAL PLANNING AND the assets of the charity and the group. This is 2019 and beyond. In partnership with the act on behalf of the Trustee Board, to review means our average hourly rate was higher for however, offer a cash reward programme for that formally draws together strategic risks, Accepted Accounting Practice (United Kingdom DECISION SUPPORT enabled through the RNLI’s financial policies Royal College of Arts and Bournemouth remuneration policies to meet the charity’s women than men. The details are published on the our seasonal fundraising employees. costs, resourcing requirements and our business Accounting Standards and applicable law). The strategic management of the RNLI and procedures. Compliance with these University we continue to explore alternative aims and our legal responsibilities, and how government’s designated website and RNLI.org. • Annual pay budgets take into account plan to ensure decisions are robust, evidenced Under charity law, the Trustees must not is entrusted to the Trustee Board and policies and procedures is mandatory for all options to landfill for end-of-life equipment, these are communicated both internally Insights from this report enable us to affordability, economic trends and external and auditable. approve the financial statements unless they the execution of that management – the employees, honorary officials and volunteers and materials such as boarding boats and and externally. proactively progress a plan to address any market pay movement. are satisfied that they give a true and fair view responsibility for implementing strategy and of the RNLI and its subsidiary companies lifeguard clothing. The Committee reviews the remuneration gender pay gaps that may have arisen from TRUSTEE BOARD of the state of affairs of the charity and the the day-to-day management of the RNLI – is and non-compliance may lead to disciplinary levels as part of the annual pay review. It bears recruitment, development, pay review or other SENIOR EXECUTIVE PAY DISCLOSURE RESPONSIBILITIES group, and of its, and the group’s, surplus the responsibility of the chief executive. The proceedings. EQUALITY AND FAIRNESS in mind the prevailing market conditions and personnel practices. Gender pay gap data will The RNLI acknowledges the recommendations In 2018, as part of our normal annual review of or deficit for that period. In preparing these chief executive delegates authority to his/her IN RNLI PAY, REWARDS AND relevant external benchmarks, staff retention continue to be reviewed by the Remuneration made following the Report of the Inquiry into the Governing Regulations, the Trustee Board financial statements, the Trustees are Executive Team and through it to individual RISK MANAGEMENT RECOGNITION and satisfaction, the charity budget, our future Committee and any actions to address gender Charity Senior Executive Pay and Guidance for reviewed their terms of reference and the Matters required to: budget holders. Financial authority is granted Risk management is at the heart of the RNLI’s VOLUNTEERS AND PAID STAFF plans and past performance. It also undertakes pay gaps forms part of our annual pay review Trustees on Setting Remuneration by the UK Reserved for the Board Statement. The Trustees • select suitable accounting policies and then by the approval of specific budgets and by purpose and strategy – and it’s not just about Around 95% of the people who work for the an annual review of the Executive Team pay in cycle, as well as linking to the RNLI Inclusion National Council for Voluntary Organisations. review at each Board meeting the key risks that apply them consistently the authorisation of individual managers to reducing the risk of drowning. Through saving RNLI do so as volunteers, including all the line with performance, and considers the RNLI and Diversity strategy. The inquiry advocates greater transparency the charity faces and the controls in place. • make judgements and estimates that are approve specified levels of expenditure. The lives in dangerous and demanding conditions, members of the Trustee Board, the chairman, gender pay gap, plus the overall remuneration and the RNLI recognises and accepts those The Matters Reserved for the Board reasonable and prudent financial plans form part of these overall plans our lifesavers, support staff and operational and members of the Council. report and pay disclosure statements in PAY PRINCIPLES recommendations. As a result, the RNLI has Statement makes clear the Trustee Board’s • state whether applicable accounting and are made up of a high-level 5-year business assets are all exposed to risk. We are fully The RNLI only employs paid staff where readiness for the Annual Report and Accounts. The RNLI adheres to the UK government’s provided greater clarity, with greater disclosure responsibilities and where there are clear standards have been followed, subject plan; a detailed annual budget, which defines committed to ensuring that these risks are necessary to run and support what is a complex statutory national minimum and living on the pay of the Executive Team, as well as delegated authorities to act on their behalf. to any material departures disclosed and specific projects and detailed departmental managed so that our volunteers and staff are as service in a hazardous environment. There are PAY POLICY wage rates. These are the key principles that continuing to disclose the chief executive’s pay The delegated authorities are discharged through explained in the financial statements plans for the next financial year; and a quarterly safe as possible. a number of specific skills needed to keep such In setting overall pay levels for our staff, we take apply to pay at all levels in the RNLI: in full (see page 61). the committees of the Trustee Board, or through • prepare the financial statements on the forecast process that reviews the annual plans Effective risk management is also key an organisation running as safely as possible into account the pay practice in other similarly • In order to maintain a fair, rational pay The RNLI is committed to openness and the chief executive. The chief executive is going-concern basis unless it is inappropriate and makes changes, as necessary. The Finance to successfully delivering our strategy and and at peak efficiency. The RNLI has to compete sized charities and, where necessary, private- structure, the RNLI has a formal grading transparency on senior pay and will continue to responsible to the Trustee Board for the day-to- to presume that the charity will continue Department is also involved in any major developing the RNLI for a sustainable future. in the labour market and have an appropriate sector organisations for specialist and technical structure and a single pay range for each keep this under review. day running of the RNLI and the execution of to operate. project or programme work, providing the An organisation-wide risk management pay policy in place to ensure we can attract and roles (for example in IT, finance, maritime grade. The grades are based on jobs of the overall RNLI strategy and policies decided by The Trustees are responsible for keeping necessary support to ensure the right financial approach is in place. This identifies our key retain the people with the right skills to deliver operations, marine design and manufacturing, common size, taking into account the the Trustee Board. For a full list of Trustee Board proper accounting records. These must be decisions are made. strategic and operational risks and ensures our lifesaving work. We must offer a suitably and engineering roles). breadth of responsibility, complexity, Decision-making, committees, turn to page 82. sufficient to show and explain the charity’s they are effectively managed through clear competitive level of reward and appropriate We aim for a sustainable and consistent pay knowledge, skills and value to the RNLI. Each Board committee has defined terms and the group’s transactions, and disclose FINANCIAL REPORTING accountability and escalation when needed. recognition for our people. strategy that meets the diverse requirements • The RNLI encourages and rewards risk and control of reference, detailing the delegated authorities with reasonable accuracy at any time the There are two elements to financial reporting: During 2018 we continued to improve our of the RNLI. This includes a pay practice that good performance. Individual pay is where appropriate. We reviewed these terms financial position of the charity and the group, • Annual Report and Accounts – this is enterprise risk management in line with the REMUNERATION COMMITTEE – ensures individual pay decisions are supported reviewed annually and takes into account The RNLI strives to make quality decisions in 2018, to ensure alignment with the Matters and enable them to ensure that the financial produced in line with the responsibilities principles of BS ISO 31000, the internationally COMPOSITION AND RESPONSIBILITIES by a rigorous performance management process performance, pay position in the range, that are evidence-based and informed by risk. Reserved for the Board Statement. The statements comply with the UK Charities Act described previously. recognised guidelines on risk management. The pay policy of the RNLI is approved by the that applies to all employees. market conditions, any relevant new In addition to our broader risk management committees enable experienced volunteer 2011 and applicable accounting regulations. • Monthly accounts and statutory returns We are now making better use of our risk data Remuneration Committee. The Remuneration qualifications or skills developed, and structure, the Compliance Duty Holder specialists to contribute to key aspects of the They are also responsible for safeguarding – these are produced in line with the to help shape and prioritise the RNLI’s future Committee may take external counsel as well as GENDER PAY GAP internal pay relativities. We operate a Framework plays a vital part by affording RNLI’s affairs. the assets of the charity and the group – and, responsibilities described previously and delivery of programmes and projects, providing recommendations from the chief executive and In our continuing commitment to demonstrate complementary recognition scheme strategic decision makers an overview of their therefore, for taking reasonable steps to prevent with statutory requirements. The monthly a sharper focus on those things that present the people director. equality and fairness in recruitment, pay, using monetary value voucher rewards compliance obligations and activities, and FINANCIAL RESPONSIBILITIES and detect fraud and other irregularities. accounts, and associated reports, are of the greatest threats – and opportunities – to The Remuneration Committee is a promotion and development, we disclosed the for exceptional contributions outside an performance is reported through the Quarterly The Trustees are responsible for preparing the sufficient detail to allow the Executive to the RNLI. Risk knowledge and awareness is committee of the Trustee Board. It is made RNLI’s gender pay gap details. Reporting in line individual’s normal job role. Performance Report. Trustees’ Report and the financial statements in FINANCIAL OVERSIGHT make ongoing financial decisions. becoming increasingly used as a cornerstone of up of four Trustees (including the chairman with the UK Equality Act 2010 (Gender Pay Gap • Pay is reviewed consistently using the same The relationship between risk and decision- accordance with applicable law and regulations. Effective oversight is an essential part of good our decision-making at all levels. and the treasurer), one Council member Information) Regulations 2017, in 2018 the gender approach for all staff, including the Executive making is an area that we are continually Charity law requires the Trustees to prepare financial governance and the Trustees ensure FINANCIAL POLICIES AND PROCEDURES It is not always possible to fully eliminate and one independent committee member. pay gap for the RNLI was -3.1% based on an Team and the chief executive. No individual striving to improve. In 2019, Business Planning financial statements for each financial year in this through the following: The Trustees are responsible for safeguarding the possibility of an undesirable event or

41 42 Governance Governance

incident from happening. In some cases these To ensure independence, internal auditors maintain best practice and compliance to hoping to increase their numbers as we further guidance and advice to all staff who manage risks accordingly, through income pipelines, in a safe and compliant way. It has established compliance, in order to protect donors, could be significant. Should the need arise, report direct to both the chair of the Audit and high standards embed SHE in everything we do. supporter data and information. We established budgetary control, programme management a framework for managing its compliance risks, supporters and the organisation from poor the RNLI has a framework for managing major Risk Committee and the chief executive. The • we continue to provide sufficient resources We have held four SHE Committee meetings a strong data governance framework and and capital planning. In particular, investment with compliance duty holders in place to assure practices. Each are also independently audited. incidents and a crisis management plan that is committee approves both the appointment to support the implementation and during 2018, one in each of the lifesaving continue to manage any associated risks. With strategy for the RNLI’s and the pension scheme’s performance against our external obligations In 2018 we worked with 28 commercial reviewed and exercised regularly. and removal of the head of the internal audit assurance of policies in lifesaving delivery delivery areas. The meetings have included implementation of the General Data Protection investments are managed at committee level, and internal policies. participators. Of these, 21 were account The Trustee Board, its committees and the function. The committee also reviews and areas, and to conduct investigations across representation from across the RNLI to not only Regulation (GDPR) personal information using professional investment advisers to During 2018 we enhanced our whistleblowing managed centrally by either the Corporate Executive Team review the key strategic and approves the plan for internal audit work. the organisation into incidents when they help cascade messages and discuss proposed legislation in May 2018, we reviewed our minimise risk and maximise return. In relation process to take account of the UK Fundraising Partnerships or Retail Licensing teams, all with operational risks on an ongoing basis. External auditors review the RNLI’s annual occur, as well as hazard observations that improvements but also to provide feedback supporter communications once more. to pension liabilities, the RNLI employs a Regulator’s Code of Fundraising Practice, formal agreements in place. The remaining financial statements and give an opinion on them. get identified and that could result in harm if from their respective areas on things that Our opt-in only approach continues to be pensions actuary to advise on the assumptions installing a confidential hotline for staff and seven were coordinated within our community AUDIT AND RISK COMMITTEE – The Audit and Risk Committee approves the left unaddressed have gone well and to raise concerns or areas received well by our supporters. We remain and calculations needed for our annual pension volunteers to raise organisational concerns. branch network, of which one did not have a COMPOSITION AND RESPONSIBILITIES appointment, remuneration, re-appointment • we employ three specialist investigators to for improvement. at the forefront of the interpretation of rules negotiations with the pension scheme trustees. The compliance competency of our staff formal agreement in place in 2018 but is under The Audit and Risk Committee is a Standing and removal of the external auditors in lead high-level investigations into serious around the opt-in requirements within the Income uncertainty is managed through a and volunteers is continuously enhanced development in 2019. Committee of the Trustee Board and has relation to statutory audit arrangements. incidents, and those with the potential to INFORMATION SECURITY new laws and have a strong governance funding strategy that reviews income pipelines through ongoing training, which during 2018 delegated authority to act on behalf of the The committee also reviews the scope of the have been serious, so that we can ensure we We fully recognise the importance of defending framework in place to ensure our supporter through the four main sources of income to included awareness training in safety, health and COMPLIANCE WITH FUNDRAISING Board in relation to the matters set out in its planned external work. The RNLI has put the don’t have repeat occurrences. our IT systems from malicious attacks and communications are controlled and relevant to ensure targets are met, both short-term and environment (SHE), cyber security, and GDPR. LAWS AND REGULATION terms of reference, as well as providing advice, audit of its Annual Report and Accounts 2019 protecting the information we hold from the intended audience. long-term. We recognise that fundraising regulation is guidance and insight to the Executive Team on out to tender and a proposal will be put forward During 2018 there were a number of unauthorised access and misuse. Information 2018 saw the introduction of new data In managing expenditure risk, the RNLI FUNDRAISING STANDARDS changing – our Legal Team advises fundraising issues within its scope. to the 2019 Annual General Meeting. significant developments in keeping our people, security risk status is regularly reported to the protection laws and the RNLI has worked ensures financial rigour through budgetary AND REGULATION COMPLIANCE teams of their responsibilities and keeps them The Committee is chaired by a Trustee with properties and environment safe. We continued Strategic Risk Management Board. hard to achieve compliance and to ensure our control and cost-saving initiatives, such as its CONTACTING OUR SUPPORTERS AND updated with regard to any amendments. significant senior leadership and management KEY RISKS TO THE RNLI to develop our safety management system and The impact from cyber threats continues, marketing communications are lawful, fair and Supply Chain Transformation programme and SUPERVISING OUR FUNDRAISERS The Trustees are satisfied that the RNLI expertise. The chair is not a finance professional HEALTH AND SAFETY proactive safety culture, which demonstrates as demonstrated through mainstream media transparent. There is still more to be done to continuous improvement work. The RNLI prides itself on a high standard of adhered to the appropriate fundraising and so, for the audit aspect, the committee Health and Safety continues to be a priority and our legal and moral compliance. We addressed coverage of numerous high-profile victims last embed and maintain GDPR compliance and this The RNLI’s Funds Strategy and its free ethical fundraising and we continually review standards in 2018. The RNLI is a paid-up has had two senior financial professionals as we aim to reduce the number of incidents that a number of key risk areas that had been year. In response, 2018 has been as much about remains a Trustee and Executive Team priority. reserves, which are set at a level to withstand how we contact the public to ask for support. member of the Fundraising Regulator. members, plus another Trustee (who is also the cause harm or ill health to volunteers, staff and identified through our risk management ongoing education and awareness as it has been Our priority for this area in 2019 is planning any short-term financial risks, will also help to This ensures that we follow regulations, meet treasurer) as members. members of the public. processes as well as scoping some larger about constructing and revising our technology and scoping the remaining mitigations to our mitigate these risks and give the RNLI time to our own high standards and exceed the public’s COMPLIANCE WITH RECOGNISED The Committee’s main duties are to: We are fully committed to looking after our improvement projects that will commence defences. We continue to assess the threats, legacy systems, identified as important by our change its financial plans accordingly. expectations. Following our decision to move to STANDARDS • review and challenge the work of the people and anyone who could be affected by in 2019. Our team of SHE professionals, taking proactive and remedial actions to keep data protection officer, and continuing to build a opt-in communications the RNLI is working hard Each fundraising team is responsible for making Executive Team and of the internal and our actions. To do this: covering our operational lifesaving areas, our risk exposure to an acceptable level. Actions culture of data ownership. PEOPLE RISKS to ensure that all staff and volunteers understand sure that they are compliant with the standards external auditors • our safety management system ensures were actively involved in supporting include cyber-security awareness training, In 2019 we will introduce a new customer The organisation has low levels of labour the implications of this new approach and are laid out in the Fundraising Regulator’s Code of • provide the Trustee Board with an health and safety is an integral part of how operational teams, fundraising teams and vulnerability management, and regular intrusion relations management platform, which turnover at 11.17%, of which only 7.67% is due fully aware of their responsibilities. Fundraising Practice. However, the RNLI aims independent and unbiased view of the we operate and awareness is maintained at other areas of the organisation, including new and vulnerability testing. In 2019 we will update will allow even more improvements to be to voluntary turnover. The RNLI also benefits RNLI staff and volunteers carry out the vast to exceed these by applying our own additional effectiveness and appropriateness of the the highest possible level construction activity. our hardware at the coast, which will help implemented and to ensure our messages are from a high level of employee engagement (at majority of the charity’s fundraising activities. fundraising standards to ensure that we are financial reporting, internal controls, risk • safety, health and environment (SHE) is We continued actively recruiting safety, manage cyber threats. as focused as possible. This platform has 76% in the 2018 survey). We proactively review In 2018 we worked with three professional open, honest and respectful in all cases. It is management, and regulatory compliance the first item discussed at the Executive health and environment local liaisons (SHELLs) been constructed with data protection at areas where we feel there are either existing fundraising organisations (and we are in the this approach that has led us to manage and procedures of the RNLI. Team meetings across the organisation to be local SHE SUPPORTER DATA front of mind and is also subject to regular or emerging risks. One area we focus on is the process of signing up a fourth for 2019) and run internal compliance teams rather than • a thorough training regime is in place for champions. This is a voluntary role and has AND COMMUNICATIONS security assessment. health and wellbeing of our people. Another is three payroll giving agencies, and we were outsource this activity as some charities do. We INTERNAL AND EXTERNAL AUDIT – all lifeboat crews, lifeguards, volunteers proven successful in many areas, but we still have Our decision to move to an opt-in marketing their development to ensure we have a healthy part of one fundraising consortium (Lifelines are satisfied that we meet all current standards. INDEPENDENCE AND RESPONSIBILITIES and employees – supported by an ongoing work to do to establish SHELLs across the whole approach at the start of 2017 recognised both FINANCIAL RISK pipeline of leadership succession and growing on Call). Each of these undertakes professional The role of internal audit is to provide independent programme of internal health and safety organisation. SHELLs help disseminate messages the financial risk to future fundraising income The most significant financial risks for the RNLI talent across the organisation. fundraising on our behalf by recruiting payroll GRANT-MAKING POLICY assurance to management and Trustees that the promotions and awareness campaigns across the organisation and are actively involved and the challenge of changing how we collected are in investments, pension liabilities and income givers. We have a formal agreement with Our policy is guided by the requirement that any RNLI’s risk management, governance and internal • operational policies and procedures with addressing short-term problems and and stored data. We continue to embed new uncertainty. The RNLI reviews its financial plans COMPLIANCE each of them, with specified standards of grant payment is linked to a legal Deed of Grant control processes are operating effectively. continue to be developed and improved to identifying longer-term requirements. We are ways of working throughout 2018 – providing on a regular basis and manages these significant The RNLI is committed to delivering its service performance, for example in terms of GDPR negotiated with the recipient. In addition, we 43 44 Governance Governance

require completion of a satisfactory due diligence The MNC is made up of the chairman, the further two succeeding terms. We aim to match We also hold a twice-yearly Trustee Board plus a tailored section, personalised for their out of creative challenge and divergence • The LGBT+ Network grew significantly in now available as this represents a significant audit of the recipient’s senior management, deputy chairmen and the chief executive. Two the skills in the Council to our strategic goals and Executive Team workshop to discuss the individual needs. of thought. influence and numbers last year, taking the progression in the RNLI’s inclusive practices governance controls, financial capability and additional Trustees and a Council member are and business plan needs as well. strategic opportunities and risks we may In 2018 we developed a new approach We also recognise that inclusive behaviours lead with our Pride involvement and holding and will make life afloat much easier for our capacity to deliver desired results. These checks also currently members of the MNC, although At every meeting, the Membership face in the future. In 2018 the workshop to updating Trustee Board skills, with the are fundamental to the retention of any events to highlight LGBT+ issues, including female crew. include both the recipient and any of their this is not a mandatory requirement of the Nomination Committee reviews the discussions included the future strategic introduction of webinars to help brief Trustees on diversity we may attract, and the cultural shift National Coming Out Day. To encourage greater diversity and associates who are relevant to the work being committee’s terms of reference. composition of the Trustee Board and the opportunities for the RNLI, and how these our latest charity performance. Webinars will be needed to ensure this happens is substantial. • The Women’s Network held successful inclusivity in all aspects of the organisation, supported. This includes checking for absence Trustees are appointed from within and by Council, and future vacancies. This means might shape the role and skills needed in the more widely available in 2019, so that other topics Consequently, work has begun to encourage events throughout the year and hopes to the RNLI established an I&D Working Group from government sanction lists. our Council which, in turn, provides broad advice we can plan to refresh the skills, experience future chief executive. may be discussed and presented between formal this shift, but it must be acknowledged that continue to encourage new members in specifically to assess actions needed to The payment of grants is linked to reaching and support to the Trustees. Members of the and diversity needed to ensure sustainable Trustee Board meetings, as and when appropriate. culture change takes time. In an organisation as 2019. The search for a new chair of the transform the composition of RNLI governance agreed project milestones and is controlled Council may be proposed to the MNC by the governance in the future. TRUSTEE BOARD REVIEW AND We also continue to brief our Trustees in changes culturally diverse as the RNLI, different rates of network is underway. The network was structures. The working group comprised under the RNLI’s Standing Financial Instructions. Trustees or a governor. We endeavour to have a EVALUATION to regulation and standards throughout the year change are inevitable. involved in supporting a very successful representatives from the Trustees, Council, staff Planned annual grants are sanctioned as part of mix of candidates from our RNLI communities as GENDER BALANCE In 2018 we have worked through the areas as part of the Board meeting papers. Examples To measure progress, we are taking small Women in Engineering event, and the and directors and has resulted in numerous the annual budget approval process. These are well as external representation. This Committee At the end of 2018, the Board comprised 13 identified in 2017 from the external Board of this include our review and implementation of steps towards gathering human resource data Female Lifeguard Engagement Group recommendations being proposed to promote recorded in a register and are subject to regular led the search for a successor to Chief Executive Trustees – 3 women and 10 men. We continue performance evaluation. The main findings of GDPR (legislation in relation to data protection) which will help us to map the current landscape. has been instrumental in consulting more diverse representation and inclusivity review and control by the Executive Team under Paul Boissier, who is retiring in 2019. to promote and encourage diversity across this 2017 report were: and also the development of the reporting of This is reliant on IT infrastructure development on improved female lifeguard kit and of practice. a delegated authority from the Trustees. all our governing groups of the charity. The • Overall it is a high performing board with serious incidents to the Charity Commission. and some awareness-raising of the importance recruitment processes. One of the first actions of the group was Trustees also see an annual summary of the MAINTAINING INDEPENDENCE improvement of gender balance is just one part great commitment and experience within. of gathering people data among those who may to design and implement a diversity survey for year passed and the year planned. As well as having a Conflict of Interest policy for of our overall aim to improve inclusion and • There is an opportunity to review the TRUSTEE BOARD AND COUNCIL be wary of the motives for doing so. In 2018 the Inclusion and Diversity (I&D) the RNLI Council and Trustees. This provided To maintain high standards of assurance, our our Trustees and Council, we also have a Gifts diversity across our governing groups. In 2018 balance of board agendas, so more time SUCCESSION PLANNING Leadership Group welcomed new members a benchmark set of data on which we can now International Team are continually monitoring and Hospitality policy and register. Any gift we established a working group, led by a can be spent on strategic discussion and The Membership Nomination Committee OUR NETWORKS from the Education Team and the All-weather develop a Statement of Intent to be used when best practice and any legislative changes that offered is clearly recorded and any conflicts that Trustee with members of the Council and constructive challenge. (MNC) keeps a log of all the terms of office of Key to the retention of diversity is the belief Lifeboat Centre. They continue to work with the considering our governance activities. might impact the policy. Recent improvements this may cause recognised. the Executive Team, in order to evaluate how • Trustees could benefit from spending more all our governing volunteers. This is reviewed among RNLI people that their voice will be I&D manager to embed I&D throughout the The working group has regularly presented have included enhanced safeguarding The RNLI also keeps its independence of inclusion and diversity could be improved. time together informally. at every MNC meeting and, working with each heard. Our network groups are a fundamental RNLI and to help formulate strategy. its work throughout the year to the Council, due diligence and closer alignment to UK thought as well as action to ensure that it A number of recommendations from this governance committee chair, we ensure we have part of this. Four staff networks were active including the results of the survey and how Government Department for International can demonstrate that any decision or action group will be presented to the Trustee Board In 2018 the chairman has worked to the right skills, diversity of thinking and people in 2018: WORK ON INCLUSION AND the Council can help assist with inclusion and Development (DFID) standards in anticipation is aligned with the delivery of our charitable early in 2019. This work also forms part of make Trustee Board agendas more balanced available, now and in the future, to enable every • The Young Professionals' Network is our DIVERSITY IN 2018 diversity in the future. of securing future funding agreements from aims and there is no personal or individual bias. our wider inclusion and diversity work as between strategic matters and those relating governance committee to effectively deliver on newest and has grown from the enthusiasm For the first time, the annual staff survey A number of recommendations from this source. All Trustee Board decisions are recorded in a reported below. to performance and risk review. In an increasing its governance responsibilities. and commitment of a group of staff under included questions on the protected the working group will be presented to the decision log, which is reviewed annually regulatory environment this has been the age of 30. They have already begun characteristics as defined under the Equality Trustee Board early in 2019 for discussion and by the Trustees. Any communications we TRUSTEE BOARD MEETINGS challenging, but we will continue to work on this to make a difference, influencing senior Act 2010 (UK) and Equality Acts 1998 and 2004 agreement on the next actions to be taken. Trustee Board make internally or externally aim to The Trustee Board meets formally at least four in 2019. Trustees have also met informally on Inclusion and leaders through the Leading for Impact (Ireland). This can now be analysed to determine demonstrate our independence of thought times a year. We have a list of standing agenda two occasions for dinner and for other ad hoc training programme, and enabling leaders to where progress is being made and where there and action. items covering strategy, performance, risk and meetings outside the formal meetings. understand their perspectives, motivations is still work to do to ensure an equitable working Openness and effectiveness compliance matters. This list is supplemented diversity and career hopes for the future. environment for all. APPOINTMENTS TO THE LENGTH OF SERVICE FOR TRUSTEE with other items of relevance to the Trustees REFRESHING TRUSTEE BOARD We recognise that the future sustainability of • At the beginning of the year, the Disability In 2018, 385 staff received I&D training. TRUSTEE BOARD BOARD MEMBERS role and responsibilities. SKILLS AND KNOWLEDGE our organisation and our ability to operate our Network worked closely with the inclusion The training will be rolled out to Community accountability The Membership Nomination Committee Trustee Board members serve a 3-year term While the Executive Team are present at On appointment, new Trustees have an lifesaving services will be dependent upon our and diversity manager, and colleagues in Lifesaving staff responsible for volunteer The RNLI strives to be open in its charitable (MNC) reviews the names proposed for the and may be reappointed for up to a further two the Trustee Board meetings, they do not induction programme and a manual to success in attracting and retaining a diversity HR to deliver the Passport to Wellbeing, management in 2019. The training will help to work and is accountable for its activities and Council and submits its recommendations to succeeding terms. Following this, after a 3-year have any voting rights. Decisions lie with the familiarise themselves with the work of the of people. This diversity will help us to connect a document designed to smooth the path embed the culture change needed to ensure our actions. The diverse nature of our activities the Annual General Meeting (AGM) for election break, Trustees can be reappointed. Trustees. The Trustees also have a private RNLI and their role requirements. Inductions with a wider public when delivering our for any employee with a specific condition sustainability. across a variety of environments means we have by the governors. In 2018 our AGM was held in Council members serve a 3-year term and meeting with the chief executive prior to each for Trustees, Council members and committee crucial lifesaving messages, and will ensure or disability by enabling constructive We are also delighted that the first set of multiple stakeholders on which to share our the All-weather Lifeboat Centre, Poole. may be re-elected by the governors for up to a Board meeting. members cover their core responsibilities, that our strategic thinking has rigour, borne conversations with their line manager. crew kit designed specifically for women is plans, decisions and outcomes. We aim to keep 45 46 Governance Governance

our communities, supporters and stakeholders We measure our employees’ levels of engagement Staff survey feedback tells us that being able support. We cooperate fully to help seek justice with our customer charter. As part of our CERTIFICATIONS AND with the Gambling Commission’s requirements of governance and contributions as well appropriately informed of our work, and hope on an annual basis through a confidential survey to contribute our opinions, ideas and concerns for survivors of abuse. ongoing continuous improvement activity we REGISTRATIONS that a society lottery must apply a minimum as regular communications that are easy that with their support and engagement we and for 2018 we were delighted to achieve an is very important. Having clear options for The RNLI sets high standards with regard are reviewing the way in which we collect and The RNLI had a number of certifications and of 20% of the gross proceeds of each lottery to understand. can deliver long-term and sustainable engagement level of 76%, an increase of 4% speaking up will help us deal with challenges to children too – with a view to ensuring those report on feedback. registrations in place during 2018: directly to the purposes of the society. lifesaving, meeting our purpose and providing from 2017 levels. Supporting the development and increase trust. During last year we also participating in our programmes and activities For 2018, in order to comply with best We have procedures and protective UK MUSEUM ACCREDITATION public benefit. Each year we openly share of engagement, our internal communications instigated a confidential whistleblowing are kept safe. Our education programme is practice, we merged our categories of FUNDRAISING REGULATOR measures in place to encourage responsible The RNLI Henry Blogg Museum and RNLI our work and the progress we have made in strategy focuses on three elements: everyone hotline for our people. They can use the delivered to children in schools throughout complaints and negative feedback, which We are proud to be registered with the gambling and to identify and help those with Grace Darling Museum continued to meet the our Annual Report, at the Annual General should know why we are doing what we are doing, hotline if they wish to raise a serious our areas of operation and is recognised by those has led to an overall increase in volume of Fundraising Regulator. It demonstrates that we gambling problems. We strictly adhere to the standard for UK Museum Accreditation. Meeting, on our charity website and in other feel they want to be part of it, and can do their organisational concern, for example if they schools and local authorities as being core to complaints. It’s important to highlight that take our fundraising extremely seriously. As a Gambling Commission’s directive on social public communications. very best work to support the journey we are on. suspect fraud or want to highlight a serious their safeguarding arrangements for children, to our complaint numbers, although increased, registered charity it means we promote best responsibility and problem gambling. See more health and safety concern. prevent the risk of harm through drowning. continue to be low in relation to sector activity. practice, defend the sector and demonstrate at RNLI.org/lottery. The Annual Report of the Trustees of the ENGAGEMENT WITH OUR PEOPLE SERIOUS INCIDENT REPORTING While the RNLI safeguarding systems are In 2019 our focus of improvement will be on our compliance with the law. In 2018 we were RNLI was approved by the Trustees of the RNLI AND OUR STAKEHOLDERS We’re reviewing serious incident reporting OUR COMMITMENT TO strong, there are rare occasions when these the reason behind the complaint, therefore we one of 60 charities the Fundraising Regulator ACCREDITATION OF TRAINING AND on 10 April 2019 and signed on their behalf by In 2018 the Trustees discussed how we work and following changes in the guidance issued by SAFEGUARDING are breached. will report on reason as a heading rather than selected to be part of a test group to better ASSESSMENT STANDARDS engage with our communities and stakeholders. the Charity Commission in October 2018. The RNLI has safeguarding responsibilities Last year we had 16 cases logged where a organisational area. This will better aid our trend monitor complaints in the sector. We welcome Our powerboating, motorcruising, VHF and Our current approach is described under Existing processes have been strengthened across the various jurisdictions in which we potential risk to young people or vulnerable analysis and help target areas for improvement. being part of a more detailed review in 2019. shore-based theory courses are accredited by the Transparency and Donor Trust section to make identification of serious incidents work, whether around the coast of the UK and adults was identified, and where we were We recorded 5,606 pieces of feedback in the Royal Yachting Association (RYA). (page 39), but in summary we aim to engage easier. We set a clearer process for reporting Ireland or in our international work. The RNLI able to act to ensure that this risk did not 2018, of which 3,610 were complaints. The DIGITAL CODE OF CONDUCT The Association of Marine Electronic and and communicate with our supporters, developing incidents to senior management Safeguarding policy and codes of conduct apply materialise. One of these cases met the criteria majority of these (3,250) were in relation In 2018 the remit of the Digital Team moved Radio Colleges (AMERC) accredits our Search donors and the wider public in all aspects of our and ensure timely escalation to Trustees for across the whole organisation and are supported for reporting as a serious incident to the to operational activity, more particularly in from having a focus on the web and our and Rescue Radio Operator’s course (SARROC) lifesaving work. We do this through face-to- awareness and view on reporting. by a range of policies and procedures to reduce Charities Commission. response to the standing down of crew at our marketing and fundraising efforts to providing and our Long Range course (LRC). Stuart Popham face, traditional and social media channels, and Two incidents were reported to the Charity the risk of harm to beneficiaries, supporters, Whitby Lifeboat Station and the subsequent digital support across the RNLI. Our STCW 95 Sea Survival course, Casualty RNLI Chairman strive to develop good relationships with all the Commission in 2018. staff and volunteers. We recognise that we have OPEN AND ACCOUNTABLE articles in the Daily Mail. 195 of the complaints In November 2018 the Digital Code of Care course and Approved Engine course (AEC) relevant groups, organisations and individuals additional responsibilities to safeguard children FUNDRAISING STANDARDS we received were in relation to fundraising Conduct was launched for charities. The guide, are accredited by the Maritime and Coastguard who have an interest in our charitable work, RAISING CONCERNS INTERNALLY and vulnerable adults. We encourage individuals The RNLI works hard to ensure that everyone activity. In the same period, we sent over 5M which we are adopting, covers leadership, Agency (MCA). especially at times of change. There are lots of ways for RNLI people to to report concerns and we recognise that there supporting the charity understands how pieces of supporter communication by hard culture and organisational skills as well as a Our Casualty Care course is also accredited As an organisation we recognise the value flag a concern, from starting with a simple are many barriers to vulnerable people reporting their money will be used to save lives. This is copy or electronic means. The number of number of technical elements. by the College of Paramedics, the Anaesthesia and importance of having engaged employees. conversation with a colleague and, if necessary, abuse and we are committed to improving reflected in the low level of complaints received. complaints directly in relation to inappropriate Trauma and Critical Care (ATACC) group and We know high levels of engagement influence chatting to a line manager, through to using reporting mechanisms. When concerns are When we receive complaints, we respond on a contact was two, and such a low reporting UK GAMBLING COMMISSION the Faculty of Pre-Hospital Care at The Royal the performance of our teams, reduce the the services of Channel (employee consultation raised, we study the circumstances with a view to one-to-one basis as quickly as possible and we number is thanks to our opt-in stance. Of the REGULATION College of Surgeons of Edinburgh. likelihood of accidents and periods of absences, group) or following the Volunteer Problem understanding the causes and how we can take annually complete a complaints return for the 195 fundraising complaints received, only 28 The RNLI’s quarterly Lifeboat Lottery is All our flood rescue courses are approved by create a greater level of discretionary effort and Solving Process or Employee Grievance Process. steps to prevent similar occurrences. Staff can Fundraising Regulator. The Regulator report now will need to be reported to the Fundraising licensed by the Gambling Commission under the UK Department for Environment, Food and develops a deep connection to the organisation. It’s really important that all RNLI people report any type of harassment through a number runs from April to March and, therefore, the Regulator in accordance with their guidelines. the Gambling Act 2005. This is to ensure our Rural Affairs (Defra). Our launch and recovery We adopt a model of engagement that can be feel that they are able to raise concerns and of mechanisms including a new independent next report will be requested in April 2019 and We also captured 1,996 items of positive gambling activities are safe, fair and crime-free. training is accredited by the Off-highway Plant categorised into three areas: are aware of the options available to them. whistleblowing service. will cover all complaints received from 1 April feedback covering all areas of the RNLI. We hold a non-remote and an ancillary remote and Equipment Research Centre (OPERC). • Say – an individual’s likelihood to be an Our values encourage us to be courageous and In addition to these reports of behaviour 2018 to 31 March 2019. In the short term, as we improve our licence and strictly adhere to the Licence advocate for the organisation operate in an environment where we respect emanating from within the RNLI, we also feedback processes, we may continue to see a Conditions and Codes of Practice regulated by PENSION QUALITY MARK PLUS • Stay – their commitment to the organisation each other. Speaking up is an important way of receive reports of safeguarding concerns raised COMPLAINTS AND FEEDBACK rise in complaint activity. We take complaints the Gambling Commission. The RNLI’s UK Group Personal Pension Plan and their role doing this. All RNLI staff and volunteers agree within the communities in which we work. We continue to record and report on complaints seriously and have an ambition to eliminate In 2018, the value of ticket sales for the continues to meet the Pensions and Lifetime • Strive – their motivation for the purpose and to behave by the Staff Code of Conduct or We work closely with partner organisations to and feedback we receive from supporters nuisance factors for supporters. We want to Lifeboat Lottery was £2.1M with £1.8M, on Savings Association’s ‘Pension Quality Mark ambitions of the organisation. Volunteer Code of Conduct. It’s important that help ensure that children, vulnerable adults and and the public. Our response times to this learn and use the insight from feedback to average 87%, being the value returned directly Plus’ standard. This standard recognises anyone who doesn’t, is held accountable. their families receive appropriate community feedback have been managed in accordance inform our future activity. for the purposes of the society. This complies that the RNLI’s pension has good levels 47 48 Independent auditor’s report

TO THE TRUSTEES OF THE ROYAL NATIONAL CONCLUSIONS RELATING • the information given in the financial statements is expected to influence the economic decisions of users taken on LIFEBOAT INSTITUTION TO GOING CONCERN inconsistent in any material respect with the Trustees’ report; the basis of these financial statements. We have audited the financial statements of the Royal National We have nothing to report in respect of the following matters in or A further description of our responsibilities for the audit of Independent Lifeboat Institution for the year ended 31 December 2018 which relation to which the ISAs (UK) require us to report to you where: • sufficient accounting records have not been kept; or the financial statements is located on the Financial Reporting comprise the Consolidated and Charity Statement of Financial • the Trustees’ use of the going concern basis of accounting in • the financial statements are not in agreement with the Council’s website at: www.frc.org.uk/auditorsresponsibilities. Activities, the Consolidated and Charity Balance Sheets, the the preparation of the financial statements is not appropriate; accounting records and returns; or This description forms part of our auditor’s report. Consolidated Cash Flow Statement and notes to the financial or • we have not received all the information and explanations we statements, including a summary of significant accounting • the Trustees have not disclosed in the financial statements require for our audit. USE OF OUR REPORT auditor’s report policies. The financial reporting framework that has been applied any identified material uncertainties that may cast significant This report is made solely to the charity’s Trustees, as a body, in their preparation is applicable law and United Kingdom doubt about the group’s or the parent charity’s ability to RESPONSIBILITIES OF TRUSTEES in accordance with Part 4 of the Charities (Accounts and Accounting Standards, including Financial Reporting Standard continue to adopt the going concern basis of accounting for a As explained more fully in the Trustees’ responsibilities statement Reports) Regulations 2008 and Regulation 10 of the Charities 102 – The Financial Reporting Standard applicable in the UK period of at least 12 months from the date when the financial (set out on page 42), the Trustees are responsible for the Accounts (Scotland) Regulations 2006. Our audit work has been and Republic of Ireland (United Kingdom Generally Accepted statements are authorised for issue. preparation of the financial statements and for being satisfied undertaken so that we might state to the charity’s Trustees those Accounting Practice). that they give a true and fair view, and for such internal control matters we are required to state to them in an auditor’s report OTHER INFORMATION as the Trustees determine is necessary to enable the preparation and for no other purpose. To the fullest extent permitted by law, In our opinion the financial statements: The Trustees are responsible for the other information. The other of financial statements that are free from material misstatement, we do not accept or assume responsibility to anyone other than • give a true and fair view of the state of the group’s and of the information comprises the information included in the annual whether due to fraud or error. the charity and the charity’s Trustees as a body, for our audit parent charity’s affairs as at 31 December 2018 and of its report, other than the financial statements and our auditor’s In preparing the financial statements, the Trustees are work, for this report, or for the opinions we have formed. incoming resources and application of resources, including its report thereon. Our opinion on the financial statements does not responsible for assessing the group’s and the parent charity’s income and expenditure for the year then ended; cover the other information and we do not express any form of ability to continue as a going concern, disclosing, as applicable, • have been properly prepared in accordance with United assurance conclusion thereon. matters related to going concern and using the going concern Kingdom Generally Accepted Accounting Practice; and In connection with our audit of the financial statements, our basis of accounting unless the Trustees either intend to liquidate • have been prepared in accordance with the Charities Act responsibility is to read the other information and, in doing so, the charity or to cease operations, or have no realistic alternative 2011, Charities and Trustee Investment (Scotland) Act 2005 consider whether the other information is materially inconsistent but to do so. and regulations 6 and 8 of the Charities Accounts (Scotland) with the financial statements or our knowledge obtained in Regulations 2006. the audit or otherwise appears to be materially misstated. If AUDITOR’S RESPONSIBILITIES FOR THE AUDIT we identify such material inconsistencies or apparent material OF THE FINANCIAL STATEMENTS BASIS FOR OPINION misstatements, we are required to determine whether there We have been appointed as auditor under section 151 of the We conducted our audit in accordance with International is a material misstatement in the financial statements or a Charities Act 2011, and section 44(1)(c) of the Charities and Standards on Auditing (UK) (ISAs (UK)) and applicable law. material misstatement of the other information. If, based on the Trustee Investment (Scotland) Act 2005 and report in Our responsibilities under those standards are further described work we have performed, we conclude that there is a material accordance with the Acts and relevant regulations made or Crowe U.K. LLP in the auditor’s responsibilities for the audit of the financial misstatement of this other information, we are required to report having effect thereunder. Statutory Auditor statements section of our report. We are independent of the that fact. Our objectives are to obtain reasonable assurance about St Bride’s House group in accordance with the ethical requirements that are We have nothing to report in this regard. whether the financial statements as a whole are free from 10 Salisbury Square relevant to our audit of the financial statements in the UK, material misstatement, whether due to fraud or error, and to London including the FRC’s Ethical Standard, and we have fulfilled MATTERS ON WHICH WE ARE REQUIRED TO issue an auditor’s report that includes our opinion. Reasonable EC4Y 8EH our other ethical responsibilities in accordance with these REPORT BY EXCEPTION assurance is a high level of assurance, but is not a guarantee that 11 April 2019 requirements. We believe that the audit evidence we have We have nothing to report in respect of the following matters an audit conducted in accordance with ISAs (UK) will always obtained is sufficient and appropriate to provide a basis for in relation to which the Charities (Accounts and Reports) detect a material misstatement when it exists. Misstatements Crowe U.K. LLP is eligible for appointment as auditor of the charity by our opinion. Regulations 2008 and the Charities Accounts (Scotland) can arise from fraud or error and are considered material if, virtue of its eligibility for appointment as auditor of a company under Regulations 2006 require us to report to you if, in our opinion: individually or in the aggregate, they could reasonably be section 1212 of the Companies Act 2006.

49 50 Financial statements Financial statements

RNLI CONSOLIDATED STATEMENT Note Unrestricted funds Restricted Endowed Total Restated RNLI CONSOLIDATED BALANCE SHEET Note 2018 Restated 2017 funds funds 2018 total OF FINANCIAL ACTIVITIES General Designated Fixed asset as at 31 December 2018 £M £M £M £M for the year ended 31 December 2018 2017 funds funds funds Assets employed £M £M £M £M £M £M £M Fixed assets Income and endowments from: Intangible assets 6b 14.5 14.0 Legacies 90.0 – – 32.5 – 122.5 131.0 Tangible assets 6a 446.6 440.7 Donations 39.6 – – 11.9 – 51.5 49.6 461.1 454.7 Trading activities 11.0 – – – – 11.0 10.7 Investments 7 249.7 277.9 Investments 7c 1.8 – – 0.6 – 2.4 2.2 Charitable activities 3.8 – – – – 3.8 3.7 Current assets Other income 1.0 – – – – 1.0 1.1 Stocks 8 19.0 17.7 Total income and endowments 147.2 – – 45.0 – 192.2 198.3 Debtors 9 39.3 35.1 Expenditure on: Bank and cash 6.5 6.9 Legacies and donations (28.2) – (0.6) (0.1) – (28.9) (27.2) 64.8 59.7 Trading activities (5.4) (0.1) – – (5.5) (5.2) – Creditors – amounts falling due within 1 year 10 (14.5) (13.5) Investment management (0.3) – – (0.2) – (0.5) (0.3) Net current assets 50.3 46.2 Raising funds (33.9) – (0.7) (0.3) – (34.9) (32.7) Creditors Lifeboat service (29.0) – (1.9) (12.1) – (43.0) (40.5) Amounts falling due after more than 1 year 10 (5.6) (6.3) Lifeboats, property and equipment (39.8) – (25.5) (15.2) – (80.5) (74.1) Lifeboat rescue (68.8) – (27.4) (27.3) – (123.5) (114.6) Defined benefit pension liability 10 (46.5) (50.5) Lifeguard rescue (17.7) – (1.9) (0.3) – (19.9) (20.0) Net assets 709.0 722.0 International (2.8) – – (0.5) – (3.3) (2.9) Funds Safety, education and awareness (10.4) – (0.1) – – (10.5) (11.8) Endowed funds: Permanent 11.4 11.7 12b Charitable activities (99.7) – (29.4) (28.1) – (157.2) (149.3) Expendable 4.5 4.7 Total expenditure 5 (133.6) – (30.1) (28.4) – (192.1) (182.0) 15.9 16.4 Net (loss)/gain on investments 7b (5.2) – – (4.4) (0.5) (10.1) 10.5 Restricted funds 12c 127.7 123.1 Net income/(expenditure) 8.4 – (30.1) 12.2 (0.5) (10.0) 26.8 Unrestricted funds Transfers between funds 1h 25.4 (54.3) 36.5 (7.6) – – – Stuart Popham Paul Boissier Chairman Chief Executive Fixed asset funds 461.1 454.7 Actuarial (loss)/gain on pension schemes (3.0) – – – – (3.0) 22.8 Designated funds 12d 25.0 79.3 Net movement in funds 30.8 (54.3) 6.4 4.6 (0.5) (13.0) 49.6 General funds: Free reserves 125.8 99.0 Reconciliation of funds: Notes 1 to 19 form part of these accounts. The accounts of Funds at 1 January 48.5 79.3 454.7 123.1 16.4 722.0 672.4 Pension reserve (46.5) (50.5) the RNLI and the consolidated accounts were approved and Movement in funds 30.8 (54.3) 6.4 4.6 (0.5) (13.0) 49.6 79.3 48.5 authorised for issue by the Trustees on 10 April 2019 and Notes 1 to 19 form part of these accounts. Funds at 31 December 79.3 25.0 461.1 127.7 15.9 709.0 722.0 signed on their behalf. Total funds 709.0 722.0

51 52 Financial statements Financial statements

RNLI CONSOLIDATED CASH 2018 Restated 2017 RNLI STATEMENT OF FINANCIAL ACTIVITIES† Note Unrestricted funds Restricted Endowed Total Restated FLOW STATEMENT £M £M for the year ended 31 December 2018 General Designated Fixed asset funds funds 2018 total 2017 for the year ended 31 December 2018 Cash flow from operating activities: funds funds funds £M £M £M £M £M £M £M Net cash provided by operating activities (see note below) 15.5 37.3 Income and endowments from: Cash flows from investing activities: Legacies 90.0 – – 32.5 – 122.5 131.0 Investment income 2.4 2.2 Donations 39.6 – – 11.9 – 51.5 49.6 Proceeds from the sale of fixed assets 0.6 0.9 Donations from trading companies - – – 5.5 – 5.5 5.5 Purchase of fixed assets (37.0) (39.3) Investments 7c 1.8 – – 0.6 – 2.4 2.2 Purchase of investments (34.6) (29.5) Charitable activities 3.8 – – – – 3.8 3.7 Proceeds from sale of investments 52.7 33.4 Other income 1.0 – – – – 1.0 1.1 Net cash used in investing activities (15.9) (32.3) Total income and endowments 136.2 – – 50.5 – 186.7 193.1 Change in cash and cash equivalents in the reporting period (0.4) 5.0 Expenditure on: Reconciliation of cash flow: Legacies and donations (28.2) – (0.6) (0.1) – (28.9) (27.2) Cash and cash equivalents at the beginning of the reporting period 6.9 1.9 Trading activities (0.4) – – – – (0.4) – Change in cash and cash equivalents in the reporting period (0.4) 5.0 Investment management (0.3) – – (0.2) – (0.5) (0.3) Cash and cash equivalents at the end of the reporting period 6.5 6.9 Raising funds (28.9) – (0.6) (0.3) – (29.8) (27.5) Lifeboat service (29.0) – (1.9) (12.1) – (43.0) (40.5) Lifeboats, property and equipment (39.8) – (25.5) (15.2) – (80.5) (74.1) 2018 Restated 2017 £M £M Lifeboat rescue (68.8) – (27.4) (27.3) – (123.5) (114.6) Note to the consolidated cash flow statement Lifeguard rescue (17.7) – (1.9) (0.3) – (19.9) (20.0) Reconciliation of net income to net cash flow from operating activities International (2.8) – – (0.5) – (3.3) (2.9) Net (expenditure)/income for the period (as per the SoFA) (10.0) 26.8 Safety, education and awareness (10.4) – (0.1) – – (10.5) (11.8) Depreciation and amortisation charges 30.2 29.5 Charitable activities (99.7) – (29.4) (28.1) – (157.2) (149.3) Loss/(gains) on investments 10.1 (10.5) Total expenditure (128.6) – (30.0) (28.4) – (187.0) (176.8) Investment income (2.4) (2.2) Net (loss)/gain on investments 7b (5.2) – – (4.4) (0.5) (10.1) 10.5 Profit on the sale of fixed assets (0.2) – Net income/(expenditure) 2.4 - (30.0) 17.7 (0.5) (10.4) 26.8 Increase in stock (1.3) (1.2) Transfers between funds 1h 30.7 (54.3) 36.7 (13.1) – – – (Increase)/decrease in debtors (4.2) 1.8 Actuarial (loss)/gain on pension schemes (3.0) – – – – (3.0) 22.8 Decrease in creditors (6.7) (6.9) Notes 1 to 19 form part of these accounts. Net cash provided by operating activities 15.5 37.3 Net movement in funds 30.1 (54.3) 6.7 4.6 (0.5) (13.4) 49.6 Notes 1 to 19 form part of these accounts. Reconciliation of funds: Funds at 1 January 50.4 79.3 452.8 123.1 16.4 722.0 672.4 †The RNLI statement of financial activities shows the Movement in funds 30.1 (54.3) 6.7 4.6 (0.5) (13.4) 49.6 financial performance for the year of the charity excluding its subsidiaries. Funds at 31 December 80.5 25.0 459.5 127.7 15.9 708.6 722.0

53 54 Financial statements Financial statements

RNLI BALANCE SHEET† Note 2018 Restated 2017 as at 31 December 2018 £M £M £M £M Assets employed Fixed assets Intangible assets 14.5 14.0 Tangible assets 445.0 438.8 459.5 452.8 Investments 252.3 280.5 Current assets Stocks 8 17.4 16.5 Debtors 9 39.4 35.1 Bank and cash 6.5 6.9 63.3 58.5 Creditors – amounts falling due within 1 year 10 (14.4) (13.0) Net current assets 48.9 45.5 Creditors Amounts falling due after more than 1 year 10 (5.6) (6.3) Defined benefit pension liability 10 (46.5) (50.5) Net assets 708.6 722.0 Funds Stuart Popham Paul Boissier Endowed funds: Permanent 11.4 11.7 Chairman Chief Executive 12b Expendable 4.5 4.7 15.9 16.4 Restricted funds 12c 127.7 123.1 Unrestricted funds Notes 1 to 19 form part of these accounts. The accounts of Fixed asset funds 459.5 452.8 the RNLI and the consolidated accounts were approved and Designated funds 12d 25.0 79.3 authorised for issue by the Trustees on 10 April 2019 and signed on their behalf. General funds: Free reserves 127.0 100.9 Pension reserve (46.5) (50.5) †The RNLI statement of financial activities shows the 80.5 50.4 financial performance for the year of the charity excluding Total funds 708.6 722.0 its subsidiaries.

Lytham St Annes Shannon class lifeboat Barbara Anne during a launch and recovery exercise

55 56 Notes to the accounts Notes to the accounts

The Charity has taken advantage of the exemption in FRS102 Goodwill and Straight line over the Contributions in respect of the defined contribution scheme are Employee benefits paid on termination include accrued They comprise: RNLI NOTES TO THE from the requirement to prepare a Charity only cash flow intellectual property estimated useful life recognised as expenditure as they become payable. amounts where RNLI is demonstrably committed to make • Free reserves, which are retained to enable the Trustees statement and certain disclosures about the Charity’s financial Assets under construction No depreciation is charged on assets in these payments. to provide assurance to those at sea, the public and the ACCOUNTS statements. None of the subsidiary directors received any the course of construction f) Income governments of the UK and Republic of Ireland that the RNLI remuneration or emoluments in respect of their services to those Freehold lifeboat stations Straight line over 50 years Incoming resources are included in the SoFA when the RNLI is h) Fund accounting will be able to sustain its commitment to provide the lifeboat for the year ended 31 December 2018 subsidiaries. Where directors are officers/employees of the RNLI and shoreworks entitled to the income, the receipt is probable and the amount The RNLI’s funds fall into the following categories: and lifeguard service. The free reserves are set at a level to they will receive remuneration from the RNLI. can be quantified with reasonable accuracy. If these conditions withstand any short-term financial risks, the main ones being Other freehold/ Straight line over 50 years/ 1. RNLI STRUCTURE AND ACCOUNTING leasehold buildings period of lease are not met the income is deferred. The following specific policies Permanent endowments are capital sums that are donated in the investment markets, pension scheme funding or in key POLICIES b) Critical accounting judgements and key sources apply to categories of income: under the restriction that they are invested and that only the sources of income, such as legacies. The value is determined Lifeboats 13–25% reducing balance per annum The RNLI was founded in 1824 and was incorporated under a of estimation Legacies are accounted for based on settlement of the estate income arising is available for expenditure in accordance with using risk modelling techniques, in conjunction with our Royal Charter in 1860, with Supplemental Charters granted In the application of the Charity’s accounting policies, Trustees or receipt of payment, whichever is the earlier. Where pecuniary the donors’ directions. These capital sums can only be spent investment advisers. Based on this value, if free reserves fall in 1932, 1986, 2002 and 2011. The RNLI is registered as a are required to make judgements, estimates and assumptions Launching equipment 13% reducing balance per annum/ legacies are of a size that is apparent they will be paid, these are in exceptional circumstances with the agreement of the outside the range of 4–10 months’ charitable expenditure charity in England and Wales (209603), Scotland (SC037736), about the carrying value of assets and liabilities that are not straight line over 10 years recognised at the point of probate. Charity Commission. cover, the Trustees will review the business plan and make the Republic of Ireland (20003326) and the Bailiwick of Jersey apparent from other sources. The estimates and underlying Office furniture Straight line over 5–10 years This represents a change in accounting policy where changes, as they consider appropriate. These free reserves will (14). The address of the registered office is West Quay Road, assumptions are based on historical experience and other factors and depot plant previously legacy income was recognised once probate had been Expendable endowments are capital sums that are donated include any unrestricted legacy values accrued. Poole, Dorset, BH15 1HZ. that are considered relevant. Actual results may differ from Computer hardware Straight line over 4–10 years granted and where sufficient information has been received on under the restriction that they are invested and that only the • Pension reserve, which represents the FRS102 accounting these estimates. The estimates and underlying assumptions are and software an estimated basis with regard to the cash. The 2017 numbers income arising is available for expenditure in accordance with deficit for the defined benefit pension scheme as at the a) Basis of accounting reviewed on an ongoing basis. Revisions to accounting estimates Motor vehicles Straight line over 4 years shown in these accounts have been restated to reflect the the donors’ directions. These capital sums may be spent at the year end. The FRS102 basis is a prescribed accounting basis The accounts (financial statements) have been prepared in are recognised in the period to which they relate. The key sources change. The effects of which are shown in note 17. discretion of the Trustees, where necessary, and in accordance that requires the discount rate to be the rate on high quality accordance with the Accounting and Reporting by Charities: of estimation are summarised below: Legacy freehold and leasehold property is capitalised under with the donors’ directions. corporate bonds with a duration equivalent to that of the Statement of Recommended Practice (SORP), Financial Reporting • residuary legacies – where the charity has received an interim Assets are valued at their value in use to the charity, as tangible fixed assets at market value. When sold, the profit or liabilities. Each year, the scheme actuary assesses the financial Standard 102 The Financial Reporting Standard applicable in the distribution on residuary legacies before the year end, an prescribed by the SORP, rather than the market value of the loss on disposal is recognised in the SoFA as legacy income rather Restricted funds are only available for expenditure in position of the scheme, allowing for the returns expected to be UK and Republic of Ireland (FRS102) and the Charities Act 2011. estimation is made for the value of the remainder of the asset. On that basis, impairment is recognised when the asset is than profit or loss on disposal of fixed assets. accordance with the donors’ directions. This will include any generated by the assets planned to be held by the scheme in The accounts (financial statements) have been prepared to legacy due. no longer used for its original charitable purpose. Subscription income is treated as a donation and is accounted restricted legacy value accrued on an estimated basis, in the future. These assets would not typically consist of 100% in give a true and fair view and have departed from the Charities • pension liabilities – the charity recognises its liability to its for when received. accordance with the policy on income detailed in this note. corporate bonds. Further details are shown in note 11. (Accounts and Reports) Regulations 2008 only to the extent defined benefit pension scheme, which involves a number of e) Pension schemes Charitable activity income represents lifeguard income which required to provide a true and fair view. This departure has estimations as disclosed in note 11. The RNLI operates a defined benefit pension scheme covering its is accounted for when received. Fixed asset funds represent the assets of the RNLI, the vast Transfers between funds represent the application of involved following Accounting and Reporting by Charities, employees in the UK and the Republic of Ireland. The scheme was On receipt, and where material, donations in kind are majority of which are the lifeboats, launching equipment and restricted and designated funds to capital projects and transfers preparing their accounts in accordance with The Financial c) Basis of consolidation closed to new entrants from 1 January 2007 and closed to future recognised on the basis of the value of the gift to the charity, operational properties, such as lifeboat stations and lifeguard to maintain the committed value of such funds. This also includes Reporting Standard applicable in the UK and Republic of Ireland All subsidiary companies have been consolidated on a benefit accrual on 30 September 2012, although benefits for which is the amount the charity would have been willing to pay units. Without them the RNLI could not operate. They are any donations from subsidiary companies that have been made (FRS102) issued on 16 July 2014 rather than the Accounting and line-by-line basis. active members accrued up to 30 September 2012 continue to be to obtain services or facilities of equivalent economic benefit on shown separately to other unrestricted funds due to the size and on a restricted basis. Reporting by Charities: Statement of Recommended Practice subject to any increases in pensionable pay. the open market; a corresponding amount is the recognised in importance of these assets to the RNLI. effective from 1 April 2005, which has since been withdrawn. d) Depreciation, amortisation and impairment A defined contribution pension scheme was established for expenditure in the period of receipt. i) Operating leases The RNLI meets the definition of a public benefit entity under Tangible and intangible fixed assets costing more than £10,000 new staff joining from 1 January 2007 and this was also offered Designated funds are set aside at the discretion of the Trustees. Rentals applicable to operating leases are charged to the SoFA FRS102. Assets and liabilities are initially recognised at historical are capitalised and included at cost. as an alternative to members of the defined benefit pension g) Expenditure They currently comprise: over the period in which the cost is incurred on a straight-line basis. cost or transaction value unless otherwise stated in the relevant Fixed assets are depreciated or amortised over their current scheme on its closure. The defined benefit scheme assets are All expenditure is accounted for on an accruals basis and has • RNLI Lifesaving Endowment Fund, the Trustees have set aside accounting policy note. anticipated lives, which are assessed as follows: held in a separate trustee-administered fund. The cost charged been classified under headings that aggregate all costs related these funds to help create an endowed fund to preserve j) Investments The accounts have been prepared on a going concern basis in the Statement of Financial Activities (SoFA) represents to the category. Support costs representing expenditure on the future of the RNLI’s lifesaving activities. Investments for which there is a quoted market value are and having considered future plans and forecasts, including a current service costs and gains and losses on settlements and governance, estates and administration, financial management, valued at the bid-price ruling at the balance sheet date. review of financial reserves as detailed in the Trustees’ report, curtailments calculated in accordance with Accounting Standard human resources administration and information systems and These are committed funds. Other investments are valued at their realisable market value. the Trustees believe it appropriate to continue to do so. FRS102. Further details are shown in note 11. infrastructure have been allocated to expenditure, excluding Investment gains and losses arising during the year are included merchandising and investment management, on the basis of cost. General funds are sums that are freely available for general use. in the SoFA. 57 58 Notes to the accounts Notes to the accounts

k) Stocks 2. SUBSIDIARY COMPANIES SUBSIDIARY COMPANY FINANCIAL INFORMATION Stocks are valued at cost or written-down value. Stocks are reviewed The RNLI has three wholly owned subsidiaries, RNLI (Trading) on a line-item basis at least annually and provision is made against Limited, RNLI College Limited and RNLI (Sales) Limited, all RNLI (Sales) Limited RNLI College Limited cost to reduce carrying value to estimated realisable value. of which are registered in England and Wales. RNLI (Trading) Company number 2202240 Company number 7705470 Continuing operations Limited was inactive throughout 2018. 2018 2017 2018 2017 l) Presentation currency The activities of RNLI College Limited relate directly to £M £M £M £M The functional currency of the RNLI and its subsidiaries is the charitable activities of the RNLI and comprise the training Merchandising and other trading income 9.1 8.8 1.9 1.9 considered to be in pounds sterling because that is the currency of lifeboat crew and lifeguards, although there are some Internal supplies to the RNLI – – 7.0 7.0 of the primary economic environment in which the charity external sales of excess facility capacity. operates. The consolidated financial statements are also RNLI (Sales) Limited is used for non-charitable fundraising Cost of sales (2.3) (2.7) (0.8) (0.9) presented in pounds sterling. activities: selling gifts and souvenirs through the RNLI’s Gross profit 6.8 6.1 8.1 8.0 network of station branches, fundraising branches and guilds Operating costs (2.3) (2.0) (6.7) (6.6) m) Exchange rate gains and losses and running the Lifeboat Lottery. Net profit 4.5 4.1 1.4 1.4 Transactions in foreign currencies are recorded using the rate of The RNLI charges its subsidiaries for the use of any Amount of Gift Aid to the RNLI (4.1) (4.1) (1.4) (1.4) exchange ruling at the date of the transaction. Monetary assets shared resources. In 2018 a total of £0.9M (2017: £0.9M) was Retained in subsidiary 0.4 – – – are translated at the rate of exchange ruling at the balance sheet charged to the subsidiaries on a cost basis. date. Gains and losses on exchange are included in the SoFA. The RNLI balance sheet, excluding its subsidiary Fixed assets 0.5 0.5 1.1 1.4 companies, has net assets substantially the same as the Current assets 1.9 1.5 0.1 0.1 n) Cash at bank and short-term deposits consolidated balance sheet. For this reason the notes to the Current liabilities (0.8) (0.4) (0.7) (0.9) Cash at bank and short-term deposits include cash and short- accounts show only the consolidated position, except where Amounts owed (to)/from RNLI group 0.3 (0.1) 0.5 0.4 term highly liquid investments with a short maturity of 3 months there is a material difference. Net assets 1.9 1.5 1.0 1.0 or less from the date of acquisition or opening of the deposit The Boards have decided that all of the net profit will be or similar account. All cash and short-term deposits are basic donated to the RNLI and any profit shown in this note will be instruments and are measured at amortised cost. donated within 9 months of the year-end. No provision for corporation tax has been made on o) Financial instruments subsidiary company profits for the year. This is due to its The charity only has financial assets and financial liabilities of a policy of donating all its tax adjusted profits available for kind that qualify as basic financial instruments. Basic financial distribution under Gift Aid, to its ultimate charitable parent instruments are initially recognised at transaction value and undertaking within 9 months of the each year-end date subsequently measured at their settlement value. and because the company early implemented FRS 102 para 29.14A. p) Gift Aid donations made to the charity Donations made by subsidiaries to the parent charity are recognised as an expense either when paid or at the date when the company has a legal liability to make the donation payment if earlier.

q) Related party Related party transactions, if any, are disclosed in notes 9 and 10. There are no further transactions to disclose. An RNLI lifeguard patrols Weymouth beach onboard an inshore rescue boat

59 60 Notes to the accounts Notes to the accounts

3. STAFF COSTS Key management personnel (including RNLI directors The average number of employees (excluding seasonal The RNLI relies heavily on the work of volunteers to launch and and the chief executive) received total aggregate employee staff), calculated on a full-time equivalent basis and analysed by crew the lifeboats, support our lifeguard service and operate benefits (including employers NI contributions) of £1,541,994 function, was: the large network of station branches, fundraising branches and (2017: £1,317,789). Aggregate employee benefits comprise groups. We are founded on these volunteers who account for salaries, pension costs and company cars. The chief executive 2018 2017 95% of the RNLI’s people and include more than 5,500 volunteer received aggregate employee benefits (including employers NI Number Number crew members and over 3,500 volunteer shore crew and lifeboat contributions) of £195,413 (2017: £188,871). Lifeboat service 319 310 station management. The majority of our volunteers, in number, 62 (2017: 54) employees who received emoluments in excess Lifeboats, property and equipment 663 609 however, are the fundraisers who raise money and help in our of £60,000 are members of the defined contribution scheme and shops, museums and offices. received employer contributions of £630,738 (2017: £559,017). Lifeguard rescue 41 36 Staff costs, both to support these volunteers and to save lives The average monthly headcount was 2,469 (2017: 2,440). International 21 18 in areas such as lifeguards, are as follows: The total average number of employees, calculated on a full-time Safety, education and awareness 90 81 equivalent (FTE) basis, analysed by function was: Support 301 259 2018 2017 Legacies and donations 294 301 £M £M 2018 2017 Trading activities 26 17 Wages and salaries 68.0 64.2 Number Number Total 1,755 1,631 Social security costs 6.6 6.2 Lifeboat service 319 310 Pension costs 10.8 9.8 Lifeboats, property and equipment 663 609 Total 85.4 80.2 4. TRUSTEE, COUNCIL Lifeguard rescue 490 484 Severance pay 0.1 0.2 AND COMMITTEE COSTS International 21 18 No Trustees, or any persons connected with them, received remuneration. Travelling expenses are reimbursed, if claimed, to The following number of employees received emoluments in Safety, education and awareness 90 81 Trustees and members of the Standing and Advisory committees excess of £60,000 (of which directors are shown in brackets): Support 301 259 and the Council. In total, £15,180 (2017: £12,801) was reimbursed 2018 2017 Legacies and donations 321 329 to 6 Trustees, 11 Council members and members of advisory Number Number committees and the Audit and Risk Committee (2017: 6 Trustees, Trading activities 26 17 £60,000–£69,999 35 (–) 33 (–) 15 Council members and members of advisory committees and Total 2,231 2,107 the Audit and Risk Committee). No material donations were £70,000–£79,999 12 (–) 8 (–) made during the year. £80,000–£89,999 4 (1) 3 (–) The RNLI employs seasonal staff in the form of lifeguards £90,000–£99,999 5 (2) 3 (2) and face-to-face fundraisers. Lifeguards are recruited and £100,000–£109,999 4 (4) 6 (6) deployed on beaches when required and have been included £110,000–£119,999 1 (1) – (–) above in Lifeguard rescue as FTE of 449 (2017: 448). The peak number of lifeguards employed during the summer months was £160,000–£169,999 1 (1) 1 (1) 1,532 (2017: 1,460). Total 62 (9) 54 (9) 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 27 (2017: 28).

Crew Member Fergus Slevin, Courtown

61 62 Notes to the accounts Notes to the accounts

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

Staff costs Depreciation/ Other direct Other allocated Total Total Assets under Lifeboats Lifeboat Launch and Depots, Computer Total Assets under Computer Total amortisation costs costs 2018 2017 construction stations and recovery offices and equipment, construction software £M £M £M £M £M £M shoreworks equipment training plant and £M £M £M facilities vehicles Legacies and donations 13.5 0.3 10.9 4.2 28.9 27.2 Cost £M £M £M £M £M £M £M Trading activities 0.9 0.1 4.5 – 5.5 5.2 At 1 January 2018 4.2 10.9 15.1 Investment management – – 0.5 – 0.5 0.3 Cost Additions 1.7 0.5 2.2 Lifeboat service 14.5 1.5 20.7 6.3 43.0 40.5 At 1 January 2018 23.0 318.4 287.4 44.9 97.3 63.5 834.5 Lifeboats, property and equipment 26.1 24.8 17.8 11.8 80.5 74.1 Additions 31.9 0.1 0.1 0.1 0.5 2.1 34.8 Transfers (1.1) 1.1 – Lifeguard rescue 12.6 1.7 2.8 2.8 19.9 20.0 Transfers (27.8) 17.5 7.4 1.9 – 1.0 – Disposals (0.4) – (0.4) Disposals – (2.8) – (0.1) – (0.5) (3.4) International 1.1 – 1.7 0.5 3.3 2.9 At 31 December 2018 4.4 12.5 16.9 Safety, education and awareness 3.7 – 5.3 1.5 10.5 11.8 At 31 December 2018 27.1 333.2 294.9 46.8 97.8 66.1 865.9 Amortisation Support 13.1 1.8 12.2 (27.1) – – Depreciation At 1 January 2018 – 1.1 1.1 Total 85.5 30.2 76.4 - 192.1 182.0 At 1 January 2018 – 222.8 77.9 24.2 20.0 48.9 393.8 Charge for the year – 14.0 7.2 3.1 1.0 3.6 28.9 Charge for the year – 1.3 1.3 Support costs are allocated based on cost as follows: Disposals – (2.8) – (0.1) – (0.5) (3.4) Disposals – – – At 31 December 2018 – 234.0 85.1 27.2 21.0 52.0 419.3 At 31 December 2018 – 2.4 2.4 Net book amount Governance Estates and Finance Human Information Total Total Net book amount At 31 December 2018 27.1 99.2 209.8 19.6 76.8 14.1 446.6 general resource technology 2018 2017 administration At 31 December 2017 23.0 95.6 209.5 20.7 77.3 14.6 440.7 At 31 December 2018 4.4 10.1 14.5 £M £M £M £M £M £M £M At 31 December 2017 4.2 9.8 14.0 Legacies and donations 0.1 0.9 0.5 1.2 1.5 4.2 4.0 Assets under construction comprise software development costs. Lifeboat service 0.1 1.3 0.9 1.7 2.3 6.3 6.0 The net book amounts include the following property: Lifeboats, property and equipment 0.2 2.5 1.5 3.3 4.3 11.8 11.0 c) Subsidiary company assets The consolidated schedule of fixed assets includes assets owned by Lifeguard rescue 0.1 0.6 0.4 0.7 1.0 2.8 3.0 Freehold Leasehold Total £M £M £M subsidiary companies with the following net book amounts: International – 0.1 0.1 0.1 0.2 0.5 0.4 Lifeboat stations and shoreworks 66.7 143.1 209.8 Safety, education and awareness – 0.3 0.3 0.4 0.5 1.5 1.7 2018 2017 Depots, offices and training facilities 70.3 6.5 76.8 £M £M Total 0.5 5.7 3.7 7.4 9.8 27.1 26.1 At 31 December 2018 137.0 149.6 286.6 Assets under construction – – Lifeboats 0.2 0.3 Governance includes audit costs (both internal and external), Computer equipment, plant and vehicles 1.4 1.6 the AGM and committee costs. Audit fees of £70,630 (2017: £79,460) and tax fees of £10,970 Depots, offices and training facilities – – (2017: £11,980) were payable to the external auditor. Total 1.6 1.9 Crew Member Elissa Thursfield, Abersoch

63 64 Notes to the accounts Notes to the accounts

d) Financial review analysis 7. INVESTMENTS 8. STOCKS 10. CREDITORS The table below shows the cost and depreciation analysis by type of spend/income for the financial review (see note 19 on page 77). General/ Restricted Endowed Total Total Consolidated RNLI Consolidated RNLI funds funds designated funds 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 £M £M £M £M £M £M £M £M £M £M £M £M £M † Additions/ Depn Disposals Allocated Allocated Total a) Investment assets Operational stock 17.3 16.5 17.4 16.5 * ** * ** Amounts falling due within 1 year Transfers Charge Additions Depn Equities 47.6 – – 47.6 54.8 Gifts and souvenirs 1.7 1.2 – – Trade creditors 7.1 6.2 6.9 5.9 Absolute return funds – 71.7 7.1 78.8 124.5 £M £M £M £M £M £M Total 19.0 17.7 17.4 16.5 Other creditors 0.1 - - - Fixed interest 52.7 16.3 – 69.0 70.3 Inter-company creditor - - 0.8 0.4 Expenditure Property unit trusts 15.8 – 8.6 24.4 23.8 PAYE taxes and social security 1.7 1.6 1.7 1.5 Lifeboat service 1.6 (1.5) – 0.7 (0.4) 0.4 Deposits and cash – 29.7 0.2 29.9 4.5 Pension creditor 1.0 0.9 0.9 0.8 Lifeboats, property Market value at 31 30.2 (24.8) – 1.3 (0.7) 6.0 116.1 117.7 15.9 249.7 277.9 Dependants’ pensions liability 0.3 0.3 0.3 0.3 and equipment December 2018 9. DEBTORS Accruals 4.3 4.5 3.8 4.1 Lifeguard rescue 1.3 (1.7) – 0.5 (0.3) (0.2) b) Analysis of movement Consolidated RNLI Total 14.5 13.5 14.4 13.0 International – – – – – – Market value 2018 Restated 2018 Restated 148.1 113.4 16.4 277.9 271.3 Amounts falling due after more than 1 year at 1 January 2018 2017 2017 Safety, education – – – 0.2 (0.1) 0.1 £M £M £M £M Dependants’ pensions liability 5.6 6.3 5.6 6.3 and awareness Additions – 34.6 – 34.6 29.5 Legacies receivable 32.8 30.8 32.8 30.8 Defined benefit pension liability 46.5 50.5 46.5 50.5 Disposals (26.8) (25.9) – (52.7) (33.4) Legacies and Inter-company Total 52.1 56.8 52.1 56.8 0.6 (0.3) – 0.5 (0.3) 0.5 (Losses)/gains on – – – 0.1 donations (5.2) (4.4) (0.5) (10.1) 10.5 debtors investments All creditors are basic financial instruments measured at Trading activities 0.1 (0.1) – – – – Trade and other Market value 0.5 0.3 0.4 0.2 amortised cost, with the exception of PAYE taxes and social 116.1 117.7 15.9 249.7 277.9 debtors Support 3.2 (1.8) – (3.2) 1.8 – at 31 December 2018 security, pensions liability and pension creditor. VAT and Gift Aid 3.3 1.8 3.3 2.1 Income Original cost 93.9 121.1 15.3 230.3 213.7 recoverable Other – – (0.4) – – (0.4) c) Investment income Other debtors – 0.1 – 0.1 Equities 0.8 – – 0.8 0.8 Prepayments and Total 37.0 (30.2) (0.4) – – 6.4 2.7 2.1 2.9 1.8 Absolute return funds – 0.2 – 0.2 0.1 accrued income Fixed interest 0.1 – – 0.1 0.1 Total 39.3 35.1 39.4 35.1 * Asset purchase Property unit trusts 0.9 0.4 – 1.3 1.2 ** Asset depreciation/amortisation † Asset sales Deposits and cash – – – – – A proportion of legacies receivable may be received after more Total 1.8 0.6 – 2.4 2.2 than 1 year, but this figure cannot be determined with any accuracy due to the inherent uncertainty in the timing of legacy The RNLI holds 100% of the share capital of RNLI (Sales) Limited, amounting to £1.5M (2017: £1.5M), income receipt. and RNLI College Limited, amounting to £1,044,628 (2017: £1,044,628). The estimated value of legacies notified but neither received The RNLI held no derivative instruments as at 31 December 2018 (2017: none). Several of the nor included in income is £85.6M (2017: £96.5M). pooled investment funds held by the RNLI use derivative products within their portfolios to reduce All debtors are basic financial instruments measured at market risk in line with their investment strategies. amortised cost, with the exception of VAT of £2.9M (2017: £1.4M) All investments are basic financial instruments and are measured at fair values, except for and prepayments of £1.4M (2017: £0.5M). investment in subsidiaries, which are held at cost. 65 66 Notes to the accounts Notes to the accounts

11. PENSION SCHEMES Each year, the scheme actuary assesses the financial position The assets in the pension scheme and the expected rates of 31/12/2018 31/12/2017 31/12/2016 The RNLI provides a number of pension schemes for of the scheme for the formal actuarial valuation, allowing for an return at 31 December 2018 and the corresponding amounts and Expected rate Market value Expected rate Market value Expected rate Market value its employees: expected rate of return on all assets at the discount rate, based assumptions at 31 December 2017 and 31 December 2016 were: of return of assets of return of assets of return of assets • The RNLI 1983 Contributory Pension Scheme, a defined on bond yields. These assets would not typically consist of 100% % pa £M % pa £M % pa £M benefit scheme, was closed to new entrants from in corporate bonds. Equities 40.6 89.4 106.6 1 January 2007 and closed to future benefit accrual on The RNLI paid deficit reduction contributions of £9.4M in 2018 Fixed interest 24.2 21.8 21.8 30 September 2012, although benefits for active members (2017: £9.4M) and a further £4.7M is expected to be contributed to Private credit 20.7 17.2 – accrued up to 30 September 2012 continue to be subject the defined benefit scheme in the 2019 financial year. Absolute return funds 42.4 70.7 66.7 to any increases in pensionable pay. The main financial assumptions used as at 31 December 2018 • The RNLI UK Group Personal Pension Plan is the current and the corresponding assumptions at 31 December 2017 and 31 Cash and net current assets 44.1 2.3 20.7 arrangement for UK employees who joined the RNLI from December 2016 were: Liability-driven investment 113.6 128.5 96.3 1 January 2007. It is a contract-based defined contribution Real estate/property 33.6 – – scheme. Member retirement benefits are linked to the Total 2.7 319.2 2.4 329.9 2.6 312.1 investment performance of contributions made. 31/12/2018 31/12/2017 31/12/2016 The RNLI RoI Group Fusion Pension Plan is the current % pa % pa % pa • a)  The following amounts were measured in accordance with the arrangement for Republic of Ireland employees who joined Discount rate† 2.7 2.4 2.6 requirements of FRS102: the RNLI from 1 January 2012. It is a contract-based defined Rate of increase in salaries 4.1 4.1 4.1 contribution scheme. Member retirement benefits are linked Rate of increase in pensions in payment‡: 2018 2017 to the investment performance of contributions made. Post-1988 GMP increases (CPI capped at 3%) CPI-0.4% CPI-0.4% CPI-0.4% Pension Dependants’ Total Pension Dependants’ Total scheme pensions scheme pensions Pre-1997 increases (RPI capped at 4%) RPI-0.5% RPI-0.5% RPI-0.5% In 2018, the RNLI paid contributions of £10.8M (2017: £9.8M) £M £M £M £M £M £M in respect of members of the defined contribution pension 1997–2005 increases (RPI capped at 4%, CPI 5%) RPI-0.4% RPI-0.4% RPI-0.4% Total fair market value of assets 319.2 – 319.2 329.9 – 329.9 schemes. 2005–2007 increases (RPI capped at 5%, CPI 2.5%) RPI-0.5% RPI-0.5% RPI-0.5% Present value of liabilities (365.7) (5.9) (371.6) (380.4) (6.6) (387.0) Details of the defined benefit scheme, produced in Post-2007 increases (CPI capped at 2.5%) CPI-0.6% CPI-0.6% CPI-0.6% accordance with the requirements of section 28 of The Financial Net pension liability (46.5) (5.9) (52.4) (50.5) (6.6) (57.1) Rate of revaluation on deferred pensions RPI-0.5% RPI-0.5% RPI-0.5% Reporting Standard 102 (FRS102), are disclosed below and cover † both the RNLI 1983 Contributory Pension Scheme and the Rate of retail price inflation (RPI) 3.6 3.6 3.6 payments to certain dependants. Dependants’ pensions are paid Rate of consumer price inflation (CPI) RPI-1.0% RPI-1.0% RPI-1.0% b) Changes in the present value of the defined benefit by the RNLI to dependants of former crew members who lost obligation are as follows: Assumes life expectancy on retirement age 65 of: Years Years Years their lives on lifeboat service. 2018 2017 The figures in this note have been calculated by a qualified Retiring today – males 21.9 22.1 22.3 independent actuary based on a full actuarial valuation of the Retiring today – females 24.3 24.4 24.8 Pension Dependants’ Total Pension Dependants’ Total scheme pensions scheme pensions pension scheme as at 31 December 2017, rolled forward to Retiring in 15 years – males 23.1 23.3 23.8 £M £M £M £M £M £M 31 December 2018 using summarised cash flow and membership Retiring in 15 years – females 25.7 25.8 26.5 details and a full actuarial valuation of the dependants’ pensions Opening defined benefit obligation 380.4 6.6 387.0 392.6 6.9 399.5 as at 31 December 2018 on the basis required by FRS102. †Represents the weighted average discount rate and inflation rate of the Interest cost 9.0 0.2 9.2 10.1 0.2 10.3 On this basis, the FRS102 accounting deficit for the defined respective curves at the scheme’s average duration. Actuarial (gain)/loss (13.5) (0.6) (14.1) (11.6) (0.2) (11.8) benefit pension scheme as at 31 December 2018 was £46.5M ‡In excess of the Guaranteed Minimum Pension (GMP) element. Benefits paid (10.9) (0.3) (11.2) (10.7) (0.3) (11.0) (2017: £50.5M) and £5.9M (2017: £6.6M) for the dependants’ Life expectancy is based on the assumptions provided by our qualified pensions. The FRS102 basis is a prescribed basis that requires the independent actuaries. Scheme change/past service cost 0.7 – 0.7 – – – discount rate to be the rate of return on high-quality corporate Defined benefit obligation at the year end 365.7 5.9 371.6 380.4 6.6 387.0 bonds with a duration equivalent to that of the liabilities. 67 68 Notes to the accounts Notes to the accounts

11. PENSION SCHEMES (CONTINUED) 12. TOTAL FUNDS ANALYSIS a) Consolidated balance sheet – analysis of funds 2018 summary c) Changes in the fair value of the scheme assets are as follows: Unrestricted funds Restricted Endowed Total funds funds 2018 2018 2017 General Designated Fixed asset funds funds funds Pension Dependants’ Total Pension Dependants’ Total scheme pensions scheme pensions £M £M £M £M £M £M £M £M £M £M £M £M Fixed assets – – 461.1 – – 461.1 Opening fair value of scheme assets 329.9 – 329.9 312.1 – 312.1 Investments 91.1 25.0 – 117.7 15.9 249.7 Interest income on scheme assets 7.9 – 7.9 8.1 – 8.1 Net current assets 40.3 – – 10.0 – 50.3 Return on scheme assets greater than Creditors falling due (17.1) – (17.1) 11.0 – 11.0 (5.6) – – – – (5.6) discount rate after more than 1 year Employer contributions 9.4 – 9.4 9.4 – 9.4 Defined benefit (46.5) – – – – (46.5) Benefits paid (10.9) – (10.9) (10.7) – (10.7) pension liability Fair value of scheme assets at the year end 319.2 – 319.2 329.9 – 329.9 Total 79.3 25.0 461.1 127.7 15.9 709.0

The actual return on scheme assets was a loss of £9.2M (2017: a gain of £19.1M). b) Endowed funds – analysis of major funds

d) The amounts included within the Statement of Opening Income Expenditure Investment Closing Purpose balance 2018 2018 losses balance Financial Activities are as follows: Name of fund of fund 2018 2018 2018 £M £M £M £M £M 2018 2017 Pension Dependants’ Total Pension Dependants’ Total Roy Barker – All-weather scheme pensions scheme pensions permanent lifeboat 10.5 – – (0.3) 10.2 £M £M £M £M £M £M construction Net interest on net defined benefit liability 1.1 0.2 1.3 2.0 0.2 2.2 Morrell – Dungeness expendable Lifeboat Past service cost** 0.7 – 0.7 – – – Station – 4.7 – – (0.2) 4.5 Total amount charged within general 1.8 0.2 2.0 2.0 0.2 2.2 net income/(expenditure) Other endowed Actuarial (gain)/loss (13.5) (0.6) (14.1) (11.6) (0.2) (11.8) funds 1.2 – – – 1.2 Return on scheme assets greater 17.1 – 17.1 (11.0) – (11.0) than discount rate Total endowed 16.4 – – (0.5) 15.9 Remeasurement effects recognised funds 3.6 (0.6) 3.0 (22.6) (0.2) (22.8) in overall funds movement Llandudno lifeboat doctor, local GP and Total amount (credited)/charged to serial marathon runner Dr JJ Green raises 5.4 (0.4) 5.0 (20.6) – (20.6) the Statement of Financial Activities Trearddur Bay volunteers hone their casualty care RNLI funds in the 2018 Virgin Money skills during an exercise at sea London Marathon ** Estimated cost of GMP equalisation. 69 70 Notes to the accounts Notes to the accounts

12. TOTAL FUNDS ANALYSIS (CONTINUED)

c) Restricted funds – analysis of Restated Income and Expenditure Transfers Closing d) Designated funds – analysis Opening Income and Expenditure Transfers Closing major funds opening investment 2018 2018 balance of funds balance investment 2018 2018 balance gains 2018 There are over 700 of these restricted funds Donor name Purpose of fund balance gains 2018 The Trustees have reviewed the RNLI’s Name of fund Purpose of fund 2018 2018 and so this table only details those funds 2018 2018 reserves policy and, as a result, the £M £M £M £M £M £M £M £M £M £M with a balance of more than £2.0M. The Planned Capital Expenditure fund Richard W Colton All-weather lifeboat construction 5.4 (0.3) – – 5.1 Lifeboat stations and launch equipment transfers represent either a transfer to a is no longer deemed necessary, but Planned Capital Expenditure 79.3 – – (79.3) – for the next 3 years fixed asset fund, where the fund is for the Various donors Jersey Lifeboat Station – general 7.1 1.7 (0.7) (2.1) 6.0 funds have been set aside for the RNLI purpose of asset construction and the asset Lifesaving Endowment Fund. To help create an endowment fund to preserve the Gough Ritchie Trust Isle of Man lifeboat stations – general 4.3 – – – 4.3 RNLI Lifesaving Endowment – – – 25.0 25.0 is completed, or a previous year adjustment, future of the RNLI’s lifesaving activities where a donor or legator has added a Various donors Guernsey Lifeboat Station – general 4.0 0.2 (0.1) – 4.1 Total designated funds restriction at a later date or the restriction Various donors Sheringham Lifeboat Station – general 2.8 – (0.1) – 2.7 79.3 – – (54.3) 25.0 has been subject to negotiation. Various donors Morecambe Lifeboat Station – general 2.6 – (0.1) – 2.5 There are two restricted funds listed Anonymous legacy All-weather lifeboat construction – Anstruther 2.3 (0.2) – – 2.1 here from two donors (RNLI subsidiary John and Elizabeth Allan Memorial Trust All-weather lifeboat construction – Seahouses 2.2 (0.2) – – 2.0 companies and Elizabeth O’Kelly) that 13. LINKED CHARITIES Opening Income Expenditure Transfers Closing have been donated on the basis that the Roy Barker All-weather lifeboat construction 2.3 0.6 – (1.0) 1.9 The RNLI has a number of linked charities balance 2018 2018 2018 balance Donor name Purpose of fund monies will be transferred to an appropriate Joanna Williams All-weather lifeboat construction 2.0 0.4 – (2.1) 0.3 that have been established over the 2018 2018 endowment fund, once the legal position years, separated from the charity for £M £M £M £M £M Anonymous donation All-weather lifeboat – Newcastle 2.1 – – (2.1) – has been established. The RNLI subsidiary a variety of reasons, due to the nature Lifeboatmen’s Benevolent Fund Grants for distressed past or present crew members 1.8 – (0.1) – 1.7 companies’ donation in 2018 of £5.5M has RNLI subsidiary companies To set up a lifesaving endowment 5.5 5.5 – – 11.0 of the fund or the original terms of the been restricted at the time of gifting those Richard W Colton All-weather lifeboat construction 2.3 (0.1) – (2.2) – legacy or donation. All of the funds of Langstreth Culliford Trust Grants for dependants of lifesavers 0.2 – – – 0.2 funds to the RNLI. Work is ongoing on this Elizabeth O'Kelly Fund To be used in Ireland – Endowment fund 5.5 – – – 5.5 these charities are consolidated into the John William Archer All-weather lifeboat construction 0.1 – – – 0.1 matter and is expected to be complete by RNLI’s accounts. The current active linked Various donors Wells-next-the-Sea shoreworks 2.2 (0.1) – – 2.1 Charles Carr Ashley Lifeboat maintenance and support for crew 0.1 – – – 0.1 the end of 2019, at which time these funds charities with a funds balance over £0.1M will be transferred to endowed funds. Anonymous Donor All-weather lifeboat – Peel 1.0 1.2 – – 2.2 as at 31 December 2018 are as follows: Anna Stock Memorial Fund Col Stock lifeboat – construction and maintenance 0.1 – – – 0.1 Mrs H Hastings All-weather lifeboat – Eyemouth 1.2 1.0 – – 2.2 Total of linked charities 2.3 – (0.1) – 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 While there has been movement on all the above funds in the year, where it Gorleston Volunteer Lifeboat Association; Miss Maud Smith’s Reward; Other restricted funds 68.3 28.9 (27.4) 1.9 71.7 is less than £0.1M it has not been disclosed. Salcombe Lifeboat Disaster Relief Fund; Miss Annie Gertrude Shayler; Total restricted funds 123.1 40.6 (28.4) (7.6) 127.7 The RNLI also has other active linked charities with a fund balance of The George Nichol Charity for the RNLI; and RNLI Heritage Collection less than £0.1M, or nil, and these are as follows: John Jones Rowland; Isabella Trust 2012. Irwin; James Michael Bower Gift; Mrs Alice Gottwald; Ralph Glister Award; Louise George Anderson Dunn; Mrs Sadie Hughes; William Stephen Mellis;

71 72 Notes to the accounts Notes to the accounts

14. CAPITAL COMMITMENTS 16. 2017 COMPARATIVES – FUNDS AND LINKED CHARITIES b) Consolidated balance sheet – analysis of funds 2017 summary

At 31 December 2018, capital commitments amounted to £16.7M a) Consolidated statement of financial activities – previous year comparatives Unrestricted funds Restricted Endowed (2017: £18.4M). Restated funds funds total General Designated Fixed asset Unrestricted funds Restricted Endowed Restated 2017 funds funds funds General Designated Fixed asset funds funds total funds funds funds 2017 £M £M £M £M £M £M £M £M £M £M £M £M 15. OPERATING LEASE COMMITMENTS Fixed assets – – 454.7 – – 454.7 Income and endowments from: Land and buildings Other Investments 68.8 79.3 – 113.4 16.4 277.9 Legacies 98.6 – – 32.4 – 131.0 2018 2017 2018 2017 Net current assets 36.5 – – 9.7 – 46.2 £M £M £M £M Donations 39.7 – – 9.9 – 49.6 Creditors falling due (6.3) – – – – (6.3) At 31 December the ageing Trading activities 10.7 – – – – 10.7 after more than 1 year of total minimum lease Investments 2.1 – – 0.1 – 2.2 Defined benefit (50.5) – – – – (50.5) payments was as follows: Charitable activities 3.7 – – – – 3.7 pension liability Payable within 1 year 1.2 1.3 0.8 1.2 Other income 1.1 – – – – 1.1 Total 48.5 79.3 454.7 123.1 16.4 722.0 Payable between 1 and 5 years 3.0 3.3 0.5 1.1 Total income and endowments 155.9 – – 42.4 – 198.3 Payable after more than 5 years 4.9 5.2 – – Expenditure on: Total 9.1 9.8 1.3 2.3 Legacies and donations (26.8) – (0.4) – – (27.2) c) Endowed funds – analysis of major funds Trading activities (5.1) – (0.1) – – (5.2) Investment management (0.2) – – (0.1) – (0.3) Certain property leases are for an indefinite period, with the Opening Income Expenditure Investment Closing Raising funds (32.1) – (0.5) (0.1) – (32.7) RNLI having the right to early termination should the need Purpose balance 2017 2017 gains balance Name of fund arise. In calculating minimum lease payments for these leases, Lifeboat service (27.8) – (2.0) (10.7) – (40.5) of fund 2017 2017 2017 a 50-year duration has been assumed. Lifeboats, property and equipment (37.1) – (24.9) (12.1) – (74.1) £M £M £M £M £M Lifeboat rescue (64.9) – (26.9) (22.8) – (114.6) Roy Barker – permanent All-weather Lifeguard rescue (16.8) – (2.0) (1.2) – (20.0) lifeboat 10.2 – – 0.3 10.5 construction International – (2.4) – (0.5) – (2.9) Safety, education and awareness (11.7) – (0.1) – – (11.8) Morrell – expendable Dungeness Lifeboat Charitable activities (93.4) (2.4) (29.0) (24.5) – (149.3) Station – 4.6 – – 0.1 4.7 Total expenditure (125.5) (2.4) (29.5) (24.6) – (182.0) general Net gains on investments 2.5 2.4 – 5.1 0.5 10.5 Other endowed funds Net income/(expenditure) 32.9 – (29.5) 22.9 0.5 26.8 1.1 – – 0.1 1.2 Transfers between funds (42.5) 15.6 38.4 (11.5) – – Actuarial gains/(losses) on pension schemes 22.8 – – – – 22.8 Total endowed funds 15.9 – – 0.5 16.4 Net movement in funds 13.2 15.6 8.9 11.4 0.5 49.6

RNLI education volunteers share safety advice with the children of Coldfall Primary School, London

73 74 Notes to the accounts Notes to the accounts

d) Restricted funds - analysis of major funds e) Designated funds – analysis of funds 17. CHANGE IN ACCOUNTING POLICIES

Restated Income and Expenditure Transfers Restated Opening Income and Expenditure Transfers Closing In 2018 the charity has changed its accounting policy for the recognition of opening investment 2017 2017 closing balance investment 2017 2017 balance legacies. Previously the charity accounted for all legacies once probate had been Purpose balance gains balance Name of fund 2017 gains 2017 Donor name Purpose of fund of fund granted and where sufficient information had been received, on an estimated 2017 2017 2017 2017 basis as follows: cash elements are recognised at a monetary value, valued at £M £M £M £M £M £M £M £M £M £M probate or estimated market value. Values were reviewed and adjusted up to the Richard W Colton All-weather lifeboat construction 8.8 0.3 – (3.7) 5.4 Planned Capital Expenditure Lifeboat stations and point of the accounts approval. launch equipment 63.7 – – 15.6 79.3 Legacies are now accounted for based on settlement of the estate or receipt Various donors Jersey lifeboat stations – general 6.9 0.5 (0.3) – 7.1 for the next 3 years of payment, whichever is the earlier. Where pecuniary legacies are of a size that is Gough Ritchie Trust Isle of Man lifeboat stations – general 3.9 0.4 – – 4.3 International International work apparent they will be paid, these are recognised at the point of probate. Various donors Guernsey Lifeboat Station – general 3.0 1.2 (0.2) – 4.0 not covered by – 2.4 (2.4) – – The 2017 comparatives have been restated to take account of a prior year Various donors Sheringham Lifeboat Station – general 2.8 – – – 2.8 restricted funds adjustment and a change to the legacy accounting policy. The impact of this Various donors Morecambe Lifeboat Station – general 2.5 0.2 (0.1) – 2.6 Total designated funds 63.7 2.4 (2.4) 15.6 79.3 adjustment means that free reserves at 1 January 2017 and 31 December 2017, have decreased by £31.8M and £32.6M respectively. Various donors Scotland running costs 2.4 1.4 (3.8) – – The impact of this adjustment means that total funds at 1 January 2017 and Anonymous legacy All-weather lifeboat construction – Anstruther 2.2 0.1 – – 2.3 f) Linked charities 31 December 2017, have decreased by £40.2M and £44.3M respectively. John and Elizabeth Allan Memorial Trust All-weather lifeboat construction – Seahouses 2.0 0.2 – – 2.2 The effects of the change is detailed in the table below: Opening Income Expenditure Transfers Closing John and Elizabeth Allan Memorial Trust All-weather lifeboat construction – Girvan 2.2 – – (2.2) – balance 2017 2017 2017 balance Donor name Purpose of fund At 1 Jan At 31 Dec Roy Barker All-weather lifeboat construction 2.2 0.1 – – 2.3 2017 2017 £M £M £M £M £M 2017 2017 Joanna Williams All-weather lifeboat construction 2.0 – – – 2.0 £M £M Grants for distressed Various donors All-weather lifeboat construction – Bridlington 2.1 – – (2.1) – Lifeboatmen’s Benevolent past or present crew 1.8 0.1 (0.1) – 1.8 Reconciliation of reserves: Various donors Bridlington Lifeboat Station – construction 1.4 – – (1.4) – Fund members Reserves (as previously stated) 712.6 766.3 Various donors Bridlington Lifeboat Station – general 0.3 0.4 (0.4) – 0.3 Grants for Legacy accrual – change in basis (40.2) (44.3) Anonymous donation All-weather lifeboat – Newcastle 2.0 0.1 – – 2.1 Langstreth Culliford Trust dependants of 0.2 – – – 0.2 lifesavers Reserves (as restated) 672.4 722.0 RNLI subsidiary companies To set up a lifesaving endowment – – – 5.5 5.5 All-weather lifeboat John William Archer 0.1 – – – 0.1 Richard W Colton ON1337 – Hastings all-weather lifeboat – 0.1 – 2.2 2.3 construction 2017 £M Elizabeth O’Kelly Fund To be used in Ireland – Endowment fund – 5.5 – – 5.5 Lifeboat Various donors Wells-next-the-Sea shoreworks – 2.2 – – 2.2 Charles Carr Ashley maintenance and 0.1 – – – 0.1 Reconciliation of 2017 surplus for the period: support for crew Total of major funds 46.7 12.7 (4.8) (1.7) 52.9 2017 surplus (as previously stated) 53.7 Col Stock lifeboat Other restricted funds 65.0 34.8 (19.8) (9.8) 70.2 Anna Stock Memorial Fund – construction and 0.1 – – – 0.1 Legacy accrual movement – change in basis (4.1) Total restricted funds 111.7 47.5 (24.6) (11.5) 123.1 maintenance 2017 surplus (as restated) 49.6 Total of linked charities 2.3 0.1 (0.1) – 2.3

Certain property leases are for an indefinite period, with the RNLI having the right to early termination should the need arise. In calculating minimum lease payments for these leases, a 50-year duration has been assumed. 75 76 Notes to the accounts Notes to the accounts

18. POST BALANCE SHEET EVENT a) Operating (deficit)/surplus b) Financial resources – investment/bank movements

On 7 January 2019, the RNLI acquired 100% of the shares of CEL Holdings SoFA Asset Asset Asset Total SoFA Cashflow Total Limited and its wholly owned subsidiary Clayton Engineering Limited for a cash purchase depn/ sales 2018 consideration of £2.95M. Clayton Engineering Limited is a specialist engineering amort £M £M £M company, based in Powys, Wales and its principal activity is the manufacture of £M £M £M £M £M lifeboat launch and recovery equipment. Investment movements Charitable spend Loss on investments (10.1) – (10.1) 19. FINANCIAL REVIEW RECONCILIATION Lifeboat service 43.0 2.3 (1.9) – 43.4 Purchase of investments – 34.6 34.6 The financial analysis in the financial review (page 32) has been revised to show Lifeboats, property and equipment 80.5 31.6 (25.6) – 86.5 Proceeds from sale of investments – (52.7) (52.7) the total charitable expenditure, including that spent on capital, together with Lifeboat rescue 123.5 33.9 (27.5) – 129.9 the cashflow effect of this spend. This note shows the reconciliation between Investment reduction (10.1) (18.1) (28.2) Lifeguard rescue 19.9 1.8 (2.0) – 19.7 the financial statements and this analysis. The main difference is to reflect the Bank and cash movements actual spend on fixed assets, for example lifeboats and lifeboat stations, as International 3.3 – – – 3.3 opposed to the depreciation cost, with the adjustments for this shown in a). The Change in cash and cash equivalents – (0.4) (0.4) assets sales adjustment is to reflect the income received in the year, rather than Safety, education and awareness 10.5 0.2 (0.1) – 10.6 Total reduction in investments and bank (10.1) (18.5) (28.6) the profit on the depreciated cost. Total Charitable spend 157.2 35.9 (29.6) – 163.5 Income available for charitable spend Legacies 122.5 – – – 122.5 Donation 51.5 – – – 51.5 Trading (Net) 5.5 (0.1) 0.1 – 5.5 Charitable Trading 3.8 – – – 3.8 Investments (Net) 1.9 – – – 1.9 Other 1.0 – – 0.4 1.4 Total Net Income 186.2 (0.1) 0.1 0.4 186.6 Cost of generating income (28.9) (1.1) 0.6 – (29.4) Net income available for charitable spend 157.3 (1.2) 0.7 0.4 157.2

Net income, less charitable spend 0.1 (37.1) 30.3 0.4 (6.3)

Further analysis of fixed assets cashflow is available in note 6 on page 65.

Southsea Lifeguard Liv Paton

77 78 RNLI officers and contacts RNLI officers and contacts

Mark Byford Eddie Donaldson BSc FCA Mike Sturrock Rear Admiral Rosie Norris Mark is a former broadcasting Eddie was a partner with KPMG With a background in Roger Lockwood CB Rosie has 30 years’ executive and was deputy for 23 years, during which technology spanning After serving in the Royal investment management RNLI director-general of the BBC time he was on both the UK numerous industries and Navy for 34 years, Roger was industry experience. Formerly and head of BBC journalism and EMA executive teams. He sectors, Mike is now an appointed chief executive of a fund manager and chair from 2004 to 2011. He was elected to the RNLI was elected to the RNLI Council in May 2013, executive director of Domestic & General the Northern Lighthouse Board in 2006 until of the Charities Official Investment Funds, she officers Council in 2011 and was appointed a Trustee in appointed a Trustee in July 2013, and is currently insurance as chief information officer and his retirement in 2014. He was elected to the holds a number of investment board positions 2012. Mark became chairman of the Audit and treasurer and a deputy chairman. He chaired the director of business transformation. His early RNLI Council in May 2015, served as a member representing a range of investor interests. She Risk Committee in 2017. Investment Committee from 2012 to 2018 and career was at sea as a professional yacht captain. of the Scottish Council from 2016 to 2017 and was elected to the RNLI Council in 2016, became ‘The appeal of the RNLI has always been has chaired the Finance Committee since 2014. Mike was elected to the RNLI Council in May appointed its chairman in 2017. Roger was a Trustee in February 2018 and has chaired the and 2015 and appointed a Trustee in November 2016. appointed a Trustee in February 2018. Investment Committee since 2018. She is also a the strong sense of volunteering, courage, ‘I have always admired those in the RNLI who independence and community.’ risk their lives for others, so I jumped at the ‘I’ve had a passion for the sea all my life, so it’s a ‘With two maritime careers behind me, the member of the Finance Advisory Committee. chance to come onboard myself.’ huge privilege to be part of the RNLI and work RNLI has always been part of my professional ‘I am thrilled to contribute to the preservation contacts in the most extraordinary culture with such life. I am now delighted that I should be part of and continued progress of such an iconic service.’ Janet Cooper OBE motivated people.’ the RNLI instead and to be able to contribute PATRON Janet is a lawyer specialising in Sir Peter Housden KCB actively to the saving of lives at sea.’ HM The Queen remuneration and corporate Sir Peter has served as a Dr Philip Goodwin governance. She is a co- permanent secretary in both Chris Walters (appointed July 2018) PRESIDENT founding partner of Tapestry Whitehall and Holyrood. He CEng MEng MBA FIMarEST FRINA Sonia Modray Dr Goodwin has been chief HRH The Duke of Kent KG Compliance and was a partner at global law firm has a background in public Chris is a chartered engineer Sonia is an interim director executive of Voluntary Service Linklaters for 20 years. Janet was a member of services in the UK and Ireland. He was elected and naval architect with over and business adviser. From Overseas (VSO) since March TRUSTEE BOARD the RNLI Resources Committee from 2011 to to the RNLI Council in May 2012, appointed a 25 years’ experience in the December 2012 to April 2013 2015. Before taking up this position, Philip was 2014. She was elected to the RNLI Council and Trustee in November 2013, and has chaired the marine and energy sectors. He is chief executive she was interim finance director chief executive of TREE AID, where he led the Stuart Popham QC(Hon) appointed as a Trustee in 2014. Remuneration Committee since 2017. of specialist UK manufacturing group Pressure at the RNLI. She was elected to the RNLI Council expansion of programme work into Ethiopia After working as a solicitor for ‘I am inspired by the many volunteers who work ‘I want to help the RNLI be the very best Technologies plc and has held senior executive in 2014 and appointed a Trustee in 2015. Sonia and Niger, doubling the overall number of over 35 years, Stuart joined so hard to provide the RNLI’s invaluable service.’ organisation it can be, supporting coastal work positions within the Lloyd’s Register Group and is chairman of the Property Committee and is a beneficiaries the organisation reaches. With a Citigroup in July 2011 as vice- both here and overseas.’ the P&O Group. Chris joined the RNLI in 2012 member of the Finance Committee. PhD in environmental policy, he has previously chairman of EMEA Banking as a member of the Technical Committee. He ‘From my first day at the RNLI I was worked with the British Council in Mali, Belgium, Vice Admiral – retiring in 2018. He also chaired the policy was elected to the RNLI Council, appointed a impressed by the selfless dedication and Pakistan, Uganda and Kenya and conducted Sir Tim Laurence institute Chatham House. He was elected to the David Delamer Trustee and became chairman of the Technical professionalism of everyone involved with research into poverty issues with the Overseas KCVO CB ADC(P) RNLI Council in May 2011, appointed a Trustee David is managing director Committee in May 2015. this inspiring organisation.’ Development Institute, as well as being both Sir Tim is chairman of English in July 2013, and chaired the Audit and Risk of Technico, a company ‘Inspired by the courage of volunteer crews and a trustee and an executive in a number of Heritage, vice-chairman of the Committee from 2014 to 2017. In November specialising in solutions for communities, I am delighted to play a role in other charities. Commonwealth War Graves Commission and 2015 Stuart was appointed RNLI vice-chairman. the Irish telecoms industry. advancing the safety and performance of the ‘The poorest countries globally account for 90% chairman of the Major Projects Association. He succeeded Charles Hunter-Pease as David was elected to the RNLI Council in RNLI fleet.’ of drowning deaths. I’m delighted to be working He was elected to the RNLI Council in 2004 chairman in October 2016. Stuart was made a 2012. He was appointed a Trustee in 2014 with the RNLI to help bring about change.’ Companion of the Order of St Michael and St and appointed a Trustee in 2011. He became and chairman of the RNLI’s Council for Ireland George in January 2019. chairman of the Operations Committee in 2012. in 2015. ‘As a lifelong sailor with family who recognise ‘It is a great privilege for me to be able to support ‘For me, the RNLI gives incredible the real value of the RNLI, I felt I could do the wonderful work of our volunteers, staff and importance and value to individual life.’ fundraisers. I never cease to be amazed by their Baltimore Tamar class lifeboat my bit to help.’ Alan Massey at sea. commitment, dedication and courage.’ 79 80 RNLI officers and contacts RNLI officers and contacts

CHAIRMAN Geoff Holt MBE DL EX OFFICIO GOVERNORS PRINCIPAL SOLICITORS STANDING COMMITTEES CHIEF EXECUTIVE Stuart Popham QC(Hon) Professor Dominic Houlder The Lord Mayor of London Wilsons Solicitors Membership Nomination Committee Paul Boissier CB MA MSc Sir Peter Housden KCB The Chairman of The Baltic Exchange Steynings House Chairman: Stuart Popham QC(Hon) DEPUTY CHAIRMEN Charles Jones The First Sea Lord Fisherton Street BUSINESS SERVICES AND SUPPORT DIRECTOR Eddie Donaldson BSc FCA Rear Admiral Mark Kerr The Chairman of Lloyd’s Salisbury Remuneration Committee Angela Rook BSc MBA ACIS Vice Admiral Sir Tim Laurence KCVO CB ADC(P) Professor Anthony Kessell MBBS Mphil MSc FFPH MRCGP MD The Master of The Honourable Company of Master Mariners SP2 7RJ Chairman: Sir Peter Housden KCB (appointed July 2017) (elected July 2018) The Deputy Master of Trinity House COMMUNITY LIFESAVING AND FUNDRAISING DIRECTOR TREASURER Dr John Killeen The Chairman of The Royal Yachting Association Brechin Tindall Oatts Audit and Risk Committee Leesa Harwood (resigned July 2018) Eddie Donaldson BSc FCA Vice Admiral Sir Tim Laurence KCVO CB ADC(P) The Chairman of The Northern Lighthouse Board 48 St Vincent Street Chairman: Mark Byford (appointed October 2017) Rear Admiral Roger Lockwood CB The Chairman of The Commissioners of Irish Lights Glasgow COMMUNITY LIFESAVING DIRECTOR OUTGOING TRUSTEES IN 2017 Francis George Major MBE JP DL (died October 2018) The UK National Hydrographer G2 5HS Investment Committee John Payne (commenced role December 2018) Vicky Wright OBE (stepped down July 2017) Alan Marsh MBE FICS Chairman: Eddie Donaldson BSc FCA (to July 2018) John McBride (resigned July 2018) INVESTMENT ADVISER O’Connell Brennan Chairman: Rosie Norris (appointed July 2018) FUNDRAISING DIRECTOR COUNCIL Niamh McCutcheon Lane Clark & Peacock LLP Armitage House Jayne George (commenced role January 2019) HRH The Duke of Kent KG (President) Paddy McLaughlin 95 Wigmore Street 10 Lower Hatch Street Property Committee Stuart Popham CMG QC(Hon) (Chairman) Captain Ian McNaught CVO MNM London Dublin 2 Chairman: Sonia Modray ENGINEERING AND ASSET MANAGEMENT DIRECTOR Dr Peter Aitken MB ChB MTCGP FRCPsych FHEA DCH DRCOG Robin Middleton CBE (stepped down July 2018) W1U 1DQ Angus Watson Tony Allen Sonia Modray Womble Bond Dickinson ADVISORY COMMITTEES Neil Appleton (elected July 2018) Sandra Morson PRINCIPAL BANKERS Oceana House Operations Committee CHIEF FINANCIAL OFFICER Alison Appleyard BEd (Hons) NPQH ARCM LTCL FCMI Judy Nelson MBA (elected July 2018) Barclays 39–49 Commercial Road Chairman: Vice Admiral Sir Tim Laurence KCVO CB ADC(P) Steven Peacock (commenced role February 2018) The Hon Christopher A Brooke DL (stepped down July 2018) Rosie Norris Ground Floor Southampton John Burke Paul O’Leary Tagus House SO15 1GA Technical Committee STRATEGY, PERFORMANCE AND Mark Byford Scott Parsons (elected July 2018) Ocean Village Chairman: Chris Walters CEng MEng MBA FIMarEST FRINA INTERNATIONAL DIRECTOR Professor John Chudley BSc PhD CMarEng CEng FIMarEST Mark Pritchard Southampton Charles Russell Speechleys LLP James Vaughan Andrew Cooper CMG Clive Rand (stepped down July 2018) SO14 2ZP 8–10 Fetter Lane Finance Committee Janet Cooper OBE Michael Seymour London Chairman: Eddie Donaldson BSc FCA OPERATIONS DIRECTOR Professor Charles Deakin MA MD FRCP FRCA FERC FFICM Archie Smith BEM (stepped down July 2018) AUDITOR EC4A 1RS George Rawlinson David Delamer Commodore David Squire CBE MNM FNI FCMI Crowe U.K. LLP Medical Committee Eddie Donaldson BSc FCA (stepped down July 2018) St Bride’s House Blake Morgan LLP Chairman: Professor Charles Deakin MA MD FRCP FRCA FERC FFICM PEOPLE DIRECTOR Simon Dudley (elected July 2018) Mike Sturrock 10 Salisbury Square Harbour Court Sue Barnes William Everard CBE BSc(Eng) (stepped down July 2018) Professor Phil Sutton CBE FREng PhD London Compass Road Heritage Committee Roger Fairhead Professor Mike Tipton MBE MSc PhD EC4Y 8EH North Harbour Chairman: Dr Nick Winterbotham FMA FASDC CHIEF INFORMATION OFFICER AND SUPPLY Fiona Fell Dr Jean Venables CBE Portsmouth CHAIN DIRECTOR James Fulford MBA (resigned July 2018) Ian Venner PO6 4ST Scottish Council Claire Deuchar Dr Philip Goodwin Chris Walters CEng MEng MBA FIMarEST FRINA Chairman: Rear Admiral Roger Lockwood CB James Grazebrook OBE (resigned July 2018) John Whybrow Sackers & Partners LLP The RNLI thanks its past chairmen and vice presidents Martin Gregory Lesley Wilkin 20 Gresham Street Council for Ireland for their ongoing support and commitment. Adam Griffin Dr Nick Winterbotham FMA FASDC London Chairman: David Delamer David Hallam Kate Wilson EC2V 7JE Captain Neil Hardy MBE FNI Mark Wordsworth (elected July 2018) Jonathan Hart Denis Woulfe MBE

81 82 RNLI governance and management structure Awards

• 238 lifeboat stations • 5,500+ volunteer operational crew RNLI • 248 lifeguarded beaches • 3,500+ volunteer shore crew lifesaving • Flood rescue (including station management) RNLI delivery • Community safety • Over 1,600 paid and volunteer lifeguards Awards to • Partnership and advocacy • 800+ youth education and community governance (including international programmes) safety volunteers supported by 1,755 staff members Locations Departments (excluding seasonal • Regional bases Business Services and Support RNLI people in 2018 • and staff) • Manufacturing units • Community Lifesaving RNLI in the • Community • Engineering and Asset Management management community and fundraising offices, • Evidence, Insight and Technology Headquarters some of which are • Finance, Planning and Improvement QUEEN’S BIRTHDAY HONOURS 2018 TRAINING collocated with • International • Mark Criddle OBE Learning Technologies Awards: structure regional bases • Operational Policy • Bill Deans MBE • Excellence in the Design of Learning Content, public and non- • People • Francis Ashcroft McKnight BEM profit. Silver – Introduction to Navigation RNLI elearning • Strategy and Performance • John Powell MBE • Supply Chain • Martin Steeden MBE WATER SAFETY • Stan Todd MBE Swim Safe Team Awards: Volunteer 1,016 active fundraising groups Volunteer of the Year – Frankie Horne, Peel; Simon Loveland, managed by • • fundraisers, speakers • 23,000 volunteer community fundraisers NEW YEAR HONOURS 2019 Scarborough and Bridlington; Andy Mills, Margate and press officers • 410 education volunteers (announced December 2018) • Overall Site of the Year – Sandown (Isle of Wight RNLI • Evelyn Bennett BEM Fundraising Board) Supporters • 500,000+ individual members and donors, plus corporate partners and charitable trusts • Graham Drinkwater MBE • Fundraising Site of the Year – Margate (Lucy MacGowan, Andy Executive Team • Robbie Harris MBE Mills and James Uren) • David Hayward BEM • Lifeguard of the Year – Lauren Cooke, Scarborough and Archie Smith BEM Bridlington RNLI companies • overseen by • Audit and Risk John Soones BEM New Site of the Year – Glasgow (Martin McQueenie and team) • RNLI College Limited • • • Investment Sue Webster MBE Special Recognition – Martha Nevitt, RNLI Community Lifesaving Standing committees • RNLI (Sales) Limited • • • Membership Nomination Administrator Chairman and Trustees • RNLI Trading (dormant) • Property MARKETING AND MEDIA • Remuneration Gorsedh Kernow Holyer an Gof Publishers' Awards: HERITAGE appointed by • Marine, Industrial Heritage and the Environment. Dorset Museums Association: Winner – Penlee Lifeboat Station: Service Not Self • Museums Volunteer of the Year. Winners – RNLI HLF Beken Advisory committees • Heritage (Rachael Campney) Project (Kat Broomfield, David Craigmyle, Frances Hudson, Council • Finance International Safety Media Awards: Corinne Lewis, Jo Ross) • Medical • Campaign category. Silver – Respect the Water Maritime Media Awards TOURISM elected by • Operations • Technical • The First Sea Lord’s Award for Best Use of Digital Dorset Tourism Awards: Media. Certificate of Merit – The Lifeboat Station Guided Tour of the Year. Silver – RNLI College • Regional Council for Ireland • RNLI Lifeguard Hannah Fieldhouse patrols Regional Council for Scotland Project (Jack Lowe) • Large Hotel of the Year. Silver – RNLI College Governors • Boscombe beach onboard a rescue watercraft

83 84 Thank you Thank you

TRUSTS, FOUNDATIONS • The Constance Travis Charitable Trust for supporting crew MEMBERS AND SUPPORTERS • Richard and Jo Archer for their vital support for the new COMMUNITY FUNDRAISING AND INSTITUTIONAL DONORS kit at Wells Lifeboat Station. Whether your donation pays for welly boots or a boat, we are Penlee Lifeboat Station. Thank you to the thousands of volunteers in our branches and Thank you We are extremely lucky to be able to work with so many • The Foster Wood Foundation for generously supporting grateful for the generosity of all our supporters. Every pound • Roger and Gillian Smith for generously funding the new guilds. Their hard work and dedication raised vital funds through generous charitable organisations and individuals. Many of these shoreworks at Penlee Lifeboat Station. and euro given has a part to play in our lifesaving work. For their Shannon class lifeboat at Pwllheli Lifeboat Station. a huge range of activities – everything from coffee mornings to support on a regular basis or phase their gifts over several years, • The Ganton Furze Settlement for kindly supporting crew significant contributions to the RNLI in 2018, we thank: • Roy and Sarah Fuller for their generous support of Dart grand balls. And thank you to the communities they work in The RNLI would like to thank the thousands of individuals which really helps us plan for our future, knowing that we can training at Scarborough Lifeboat Station. • An anonymous donor with fond memories of Appledore. Lifeboat Station, including funding the new D class lifeboat for their generous donations and support for lifesaving appeals who made our lifesaving work possible in 2018. match our lifesaving projects to the specific objectives of these • The Gillian Freeman Family Trust and The Gillian Freeman • Anthony and Gillian Gill for their generous support for crew Dudley Jane. and campaigns. trusts, foundations and donations. Thank you all so much. Probate Trust for their support of the RNLI. training at Rye Harbour Lifeboat Station. • Simon Taylor for his generous support for our work. Thank you to our shop and souvenir volunteers for keeping LEGACIES • Arts Council England for generously supporting the Grace • The Graham Trust for kindly supporting crew training for the • Carol and Richard Shier for their generous contribution • Sue Scott for her generous contributions to Aldeburgh the RNLI open for business and raising over £6.4M. And thanks The RNLI is very grateful for every legacy, regardless of its size. Darling Museum. Troon lifeboat crew. to Littlehampton. Lifeboat Station. to the 950 independent fundraisers who walked, ran and jumped Here are just some of the gifts in Wills we received last year: • Dr Graham Hardy Discretionary Will Trust for generously • The Harebell Centenary Fund and its trustees for their • David and Eleanor Holloway for their continued generous their way to raising £688K in 2018. • Ken Currah left a pecuniary legacy to the RNLI as his final supporting the RNLI’s work in Moelfre. continued support of Oban Lifeboat Station. support of the RNLI. PARTNERSHIP SUPPORTERS Thank you all for being the vital first link in saving lives. gift, after supporting our work for over 80 years. Ken used • Dorothy Irene Raven Will Trust for their valuable • The Hearn Medicine Chest Trust for supporting the RNLI in • Dr John and Mrs Glithero for their generous support We would like to thank all the companies and organisations to ask his family to make donations to the RNLI instead of contribution to the RNLI. Mudeford, Dorset and internationally. towards the new lifeboat station at Wells. that supported us in 2018. In particular, for their continued and buying him Christmas or birthday presents. In 1937 Ken, • Earlsmead Charitable Trust for their continued generosity • The Iliffe Family Charitable Trust for generously supporting • Dr PR Sowerby for his generous support of Whitby significant support, we thank: aged 15, was presented with a certificate of merit for writing and support of the RNLI. crew training. Lifeboat Station. • EDF Renewables an essay about the RNLI in the Duke of Northumberland’s • Eunice Helen Johnson Discretionary Will Trust and • The Joan Braithwaite Sailing Trust for kindly supporting • Jeff and Barbara Court for their generous contribution • Brewdog nationwide essay competition. The family still have the its trustees. the RNLI’s apprenticeship programme through the Joan to Llandudno Lifeboat Station. • Fred. Olsen Cruise Lines beautiful certificate but, sadly, not the essay. • Heritage Lottery Fund for kindly supporting the RNLI. Braithwaite Scholarship. • Miss BM Green for her generous donation. • GAA • Tessa Tennant left a legacy in honour of her late father, • Lloyd’s Register Foundation for their generous support of • The John Scott Charitable Trust for supporting the RNLI. • Mr Alan Healey for his support of Moelfre and Sennen Cove • GAC UK Colonel Hugh Tennant. In her youth, Tessa spent many sea survival crew training. • The Kenneth & Susan Green Charitable Foundation Lifeboat Stations, in recognition of their outstanding work. • Gwynt y Môr Offshore Wind Farm* holidays with her father sailing around the English and French • Misses Barrie Charitable Trust for generously funding the for their continuing support of crew training at The Lizard • Mr and Mrs G Copeland for their support of lifeguarding in • Haven Holidays channel ports. Later in life, she and her husband – a former new B class lifeboat for Burry Port Lifeboat Station. Lifeboat Station. Skegness. • Central Bank of Ireland RAF search and rescue pilot – sailed more than 23,000 miles • Mr Robert Long Will Trust for generously supporting the RNLI. • The Laurence Misener Charitable Trust for their continuing • Mr and Mrs John Bradley from the USA for their generous • Costain Vinci Bachy Soletanche (CVB)** together across the Mediterranean and the Baltic in their • Moondance Foundation for generously supporting lifeguards support and generous contribution to the RNLI. support of Bangor, Donaghadee and Tower Lifeboat Stations. • Met Office motor launch. They were always ‘much reassured’ that the in Wales. • The Lawson Trust for kindly supporting crew training at • Mr and Mrs Towler for their generous support of Falmouth • Tideway East RNLI was there for them when they were in UK waters. • Owl Trust for generously supporting crew training at Dungeness and Ramsgate Lifeboat Stations. Lifeboat Station. • Nicholson’s, part of Mitchells & Butlers Leisure Retail Limited • Paul Waldock of Luton was an RNLI supporter throughout stations on the north-east coast of England, our Swim Safe • The Lidbury Family Trust for their continued support of the • Mr Bill Wraith for his continued and generous support of • Ørsted his lifetime and left the whole of his residuary estate for the programme and our work in Tanzania. RNLI. the RNLI. • Toolstation general use of the Institution. His support and subsequent • Pamoga Charitable Trust for their generous support of • The Peter Cundill Foundation for generously contributing to • Mr David Cole and Miss Hilary Cole for their generous • The Lifeboat Fund legacy were the result of seeing a lifeboat launch from the RNLI. our work with communities in Tanzania. contribution towards the new lifeboat station at Burry Port • Dove UK Mudeford Lifeboat Station around 1935, a sight he never • Princess Charlene of Monaco Foundation for their • The RS Macdonald Charitable Trust for very generously • Mrs Heritage for her generous support of the RNLI. • GJW Direct forgot. commitment to the fight against global drowning in Tanzania funding a new D class lifeboat for Stranraer Lifeboat Station. • Pat and Jimmy Hamilton for their continued support of the • Rampion Offshore Wind Farm • Mrs Joanna Williams from Plymouth left the whole of her and Bangladesh. • The Sally Odell Charitable Trust for kindly supporting the RNLI on the west coast of Scotland. • Helly Hansen residuary estate for an all-weather lifeboat to be named • Sartfell Trust and its trustees for their kind support of the B class lifeboat at Kinsale Lifeboat Station. • Pat and Susan Russell for their generous contribution to • PayPal Giving Fund UK. Joanna and Henry Williams. Both Joanna and her husband RNLI. • The Samuel and Freda Parkinson Charitable Trust for Tynemouth Lifeboat Station. Henry were enthusiastic offshore sailors and long-standing • Stafford Trust for their generous support of Dunbar generously supporting the RNLI. • Paul Lester for his generous support of Poole Lifeboat supporters of the RNLI. Their substantial legacy also helped Lifeboat Station. The Stanley Coventry Discretionary Trust for generously Station. • * a project currently shared between Innogy UK, Stadtwerke München fund the new boathouse at Poole Lifeboat Station and a • The B&J Lloyd Family Charitable Trust for their generous supporting the RNLI. • Paul Monk for his generous support of crew training at (Munich Principal Utilities), the UK Green Investment Bank and Siemens floating pontoon for Oban Lifeboat Station, together with support of the RNLI’s apprenticeship programme. • The Swire Charitable Trust for their valuable contribution to Lymington Lifeboat Station in memory of his late parents. ** the joint venture company delivering the east section of the essential running costs for Plymouth Lifeboat Station. the RNLI. Tideway project 85 86 Royal National Lifeboat Institution West Quay Road, Poole, Dorset, BH15 1HZ Tel 0300 300 9990 [email protected] RNLI.org

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

Photos: RNLI/(Iain Bain, Harrison Bates, Stephen Duncombe, Martin Fish, Sam Jones, Mike Lavis, Nicholas Leach, Jack Lowe, Steve Lowe, Nigel Millard, Mark Mitchell, Andrew Parish, Jon Stokes, Mark Williams, Nathan Williams), GMB Akash, Dennis Horgan, Shutterstock/(belfastlough)

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

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