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2020-12-31-accounts

Registration number: 07456004 Charity registration number: 1140126

Hope Cove Life Boat (formerly The Hope Cove Life Boat)

(A company limited by guarantee) Trustee Directors' Report and Unaudited Financial Statements

for the Year Ended 31 December 2020

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Contents

Legal and Administrative Information 1
Trustee Directors' Report 2 to 4
Independent Examiners' Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 12

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Legal and Administrative Information

Chairman Mr S Baguley
Directors Mr S Baguley
Mrs G Beavis
Mr I L Bowden
Mr D E Clarke
Mr D Illingworth
Mr C M S Longbottom
Mr I D Pedrick
Mr P B Pedrick
Mr T N Rendle
Mr R Staff
Mr C P Stidson-Nott
Mr R D Whitting
Mr J T Yeoman
Registered office Calyx House
South Road
Taunton
Somerset
TA1 3DU
Accountants Moore Scarrott Limited
Chartered Accountants
Calyx House
South Road
Taunton
Somerset
TA1 3DU

Page 1

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Trustee Directors' Report for the Year Ended 31 December 2020

The directors present their report and the financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum of Association, applicable by law, and the requirements of Accounting and Reporting by Charities, Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), (effective 1 January 2019) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities Act 2011 and the Companies Act 2006.

Principal activity

The principal activity of the company is the provision of lifeboat services.

Objectives of the charity

The charity is a company limited by guarantee, and its objectives are set out in the Memorandum of Association, its governing document.

The charity's objective is to save and protect the lives of the general public, by the provision of a lifeboat.

The charity is managed by its trustee directors, who are the directors under company law. The trustee directors are formally elected at general meetings as and when an individual puts themselves forward for election. They are supported by the necessary administration staff. The trustee directors are responsible for recruitment, appointment, induction and training of new trustee directors. The lifeboat is manned by volunteers who are not paid. The charity is responsible for training those volunteers.

Trustee Directors

The trustee directors who served during the year were:

S Baguley G Beavis I Bowden D Clarke D Hassall (resigned 12 August 2021) D Illingworth C M S Longbottom I Pedrick P Pedrick G Phillips (resigned 25 June 2020) T Rendle R Staff C Stidston-Nott R Whitting J T Yeoman

All of the above directors were appointed on 1 December 2010.

None of the trustee directors has any beneficial interest in the company. All are members of the company and guarantee to contribute £1 each in the event of it winding up.

Page 2

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Trustee Directors' Report for the Year Ended 31 December 2020

Risk factors

The trustee directors have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to these risks. The Standard Operating Procedures were updated in the year, and are being constantly reviewed to ensure the safety of crew and members of the public, particularly in view of the current Coronavirus pandemic.

The trustee directors have reviewed the Governance Code to ensure the charity is run in accordance with the code. In addition, the charity is continuing to review a number of existing policies, which is intended to provide further clarity to those involved with the charity.

Review of Activities and Financial Review

During this financial year, the lifeboat was called out a number of times, all involving members of the public. In particular, over the late May 2020 bank holiday weekend, the crew were called out ten times over a three day period.

In order to maintain the lifeboat, the charity relies on the continued financial support of donations. During the year unrestricted donations of £21,852 (2019 : £17,574) were received. The Trustee Directors are very grateful for all donations to the cause.

No restricted donations were received. Estimated gift aid reclaimable on donations is £2,342 (2019 : £1,592).

The charity also usually holds various fundraising events in order to try and generate additional funds, although they have been unable to hold them this year due to the Coronavirus pandemic. During the year the only event which was held was the annual Golf Day. In addition, the charity runs a lottery scheme - the 50/50 Club.

Total funds raised from these sources was £22,200 (2019: £30,601). Total costs were £9,528 (2019 : £10,272).

The charity also sells items such as cards, clothing, tide timetables and wristbands in order to raise additional funds. This income source has also been severely affected by the Coronavirus pandemic. Income for the period from this activity was £1,338 (2019 : £6,393). Stock was purchased in the period of £447 (2019 : £5,311).

Total direct charitable expenditure for the year was £36,778 (2019: £43,902).

Repairs and maintenance have decreased - in 2019 the costs included repairs to the thermal cameras of £1,630 and also £1,156 incurred for inspecting and repairing the self righting bag on the boat.

Motor vehicle depreciation has reduced as the charity sold the tractor during this year.

Overall the charity incurred a net surplus of £9,934 (2019: deficit £3,188) for the year.

Page 3

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Trustee Directors' Report for the Year Ended 31 December 2020

Reserves and Investment Policy

The total funds held at 31 December 2020 amounted to £168,451 (2019: £158,517). As at 31 December 2020 the charity held £126,874 in its bank accounts. Its main source of income is from donations made by the general public and holding fundraising events. However, it is difficult to predict how many donations will be received on an annual basis, particularly in view of the current pandemic. The trustee directors therefore consider it necessary to hold funds amounting to approximately one to two years’ worth of income in order to continue to meet the charities objectives for at least one year, giving the trustee directors sufficient time to seek alternative methods of funding. The trustee directors review this policy annually.

The trustee directors also consider it necessary to hold reserves in order to maintain and replace the lifeboat regularly. The current estimated cost of a replacement boat is £140,000, and the current boat is likely to need replacing within the next few years. Repairs are carried out on a regular basis to ensure the boat remains seaworthy and complies with the Rescue Boat Code. The current premises are rented from the Crown Estate on an ongoing agreement.

As the Charity now has a Drive Off Drive On (DODO) launch trolley and traction unit, it no longer needs the old tractor and trailer which were being used to launch and recover the boat. The tractor was sold during 2020 and the charity realised a profit on disposal of this of £8,979.

Statement of Trustee Directors' Responsibilities

The trustee directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustee directors to prepare financial statements for each financial year. Under that law the trustee directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustee directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

The trustee directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved by the Board on 9 September 2021 and signed on its behalf by:

Mr S Baguley Chairman

Page 4

Independent Examiner's Report to the Board of Trustee Directors on the Statutory Accounts of Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

for the Year Ended 31 December 2020

I report on the accounts of Hope Cove Life Boat (formerly The Hope Cove Life Boat) for the year ended 31 December 2020 as set out on pages 6 to 12.

Respective Responsibilities of Trustee Directors and Examiner

The Trustees (who are the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. the Charity's gross income did not exceed £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants for England and Wales (ICAEW).

It is my responsibility to:-

• Examine the accounts under section 145 of the Act;

• Follow procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Act; and

• State whether particular matters have come to my attention.

Basis of Independent Examiner's Report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently no opinion is given as to whether the accounts present a 'true and fair' view and the report is limited to those matters set out in the statement below.

Independent Examiner's Statement

In connection with my examination, no matter has come to my attention:

• Which gives me reasonable cause to believe that, in any material respect, the requirements;

1) to keep accounting records in accordance with section 386 of the Companies Act 2006; and 2) to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities

have not been met; or

• to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Duncan Nicholas FCA Chartered Accountan t

Moore Scarrott Limited Chartered Accountants Calyx House South Road Taunton Somerset TA1 3DU

17 September 2021

Page 5

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Statement of Financial Activities including Income and Expenditure Account for the Year Ended 31 December 2020

Note
Incoming resources
Sales
Fundraising
Gift aid
Grants, donations and legacies
3
Investments
4
Profit on disposal of tangible fixed
assets
Total incoming resources
Cost of sales
Opening stock
Purchases
Closing stock
Total cost of sales
Gross surplus
Resources expended
Fundraising expenses
Direct charitable expenditure
5
Total resources expended
Net incoming /(outgoing) resources
Funds movement
Total funds brought forward
Net incoming /(outgoing) resources
Total funds carried forward		 Unrestricted
funds
£
1,338
22,200
2,342
21,852
480
8,979
57,191
2,694
447
(2,190)
951
56,240
9,528
36,778
46,306
9,934
158,517
9,934
168,451		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2020
£
1,338
22,200
2,342
21,852
480
8,979
57,191
2,694
447
(2,190)
951
56,240
9,528
36,778
46,306
9,934
158,517
9,934
168,451		 2019
£
6,393
30,601
1,250
17,574
345
-
56,163
2,560
5,311
(2,694)
5,177
50,986
10,272
43,902
54,174
(3,188)
161,705
(3,188)
158,517

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

All incoming resources and reserves expended derive from continuing activities.

The notes on pages 8 to 12 form an integral part of these financial statements. Page 6

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

(Registration number: 07456004) Balance Sheet as at 31 December 2020

Note
Fixed assets
Tangible assets
8
Current assets
Stocks
9
Debtors and prepayments
10
Cash at bank and in hand
Creditors: Amounts falling due within one year
11
Net current assets
Net assets
Income funds
Unrestricted funds
Total equity		 2020
£
33,957
2,190
8,050
126,874
137,114
(2,620)
134,494
168,451
168,451
168,451		 2019
£
55,868
2,694
6,391
95,444
104,529
(1,880)
102,649
158,517
158,517
158,517

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

For the financial year ending 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The trustee directors acknowledge their responsibilities for:

Ensuring that the company keeps accounting records which comply with section 386 of the Act and,

Preparing accounts which give a true and fair view of the state of affairs of the company at 31 December 2020 and of its profit for the year then ended, in accordance with sections 394 and 395, and otherwise comply with the requirements of the Act relating to accounts, so far as applicable to the company.

Approved and authorised by the Board on 9 September 2021 and signed on its behalf by:

Mr S Baguley

Chairman

The notes on pages 8 to 12 form an integral part of these financial statements. Page 7

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Notes to the Financial Statements for the Year Ended 31 December 2020

1 General information

The company is a company limited by guarantee incorporated in England & Wales.

The address of its registered office is: Calyx House South Road Taunton Somerset TA1 3DU

2 Accounting policies

Basis of preparation and statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities, Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), (effective 1 January 2019) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities Act 2011 and the Companies Act 2006.

Hope Cove Life Boat meets the definition of a Public Benefit Entity under FRS102. Assets and Liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note (s).

The trustee directors consider that there are no material uncertainties about the charity's ability to continue as a going concern. The main area of risk to the charity is the amount of donations it receives. Based on 2020 the Coronavirus pandemic has had a significant impact on the level of donations received by the public going forward but this will be monitored by the trustee directors. Although fundraising events and merchandise sales have been affected by the pandemic, the trustee directors are hopeful that the charity can return to raising income from these events towards the end of 2021.

Incoming resources

Incoming resources are recognised in the accounts on an accruals basis, during the period in which they are due, and therefore match any related expenditure.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Restricted funds are subject to restrictions on their expenditure by the donor.

Resources expended

Resources expended are recognised on the accruals basis, to match the period in which the expenditure was incurred. Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Charity to the expenditure.

Fundraising expenses comprise expenditure incurred in respect of fundraising events. Costs incurred directly relating to the charitable company's objectives are included within direct charitable expenditure.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Page 8

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Notes to the Financial Statements for the Year Ended 31 December 2020

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

over their estimated useful lives, as follows:
Asset class Depreciation method
Land and buildings 2% straight line
Motor vehicles 25% reducing balance
Plant and machinery 20% straight line

Depreciation method and rate

Stocks

Stocks are stated at the lower of cost and net realisable value. after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

3 Grants, Donations and Legacies

Donations and legacies
4
Investments
Bank interest receivable
Other interest receivable		 Unrestricted
funds
£
21,852
21,852
Unrestricted
funds
£
476
4
480		 Unrestricted
funds
£
21,852		 Restricted
funds
£
-
-
Restricted
funds
£
-
-
-		 Total 31
December
2020
21,852
21,852
Total 31
December
2020
£
476
4
480		 Total 31
December
2019
17,574
21,852 17,574
Total 31
December
2019
£
342
3
345

Page 9

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Notes to the Financial Statements for the Year Ended 31 December 2020

5 Resources expended on direct charitable activities

Training
Rent
Insurance
Repairs and maintenance
Printing, postage and stationery
Pager hire
Sundry expenses
Protective clothing
Boat expenses
Accountancy fees
Bank charges
Depreciation of plant and machinery
Depreciation of motor vehicles		 Unrestricted
funds
£
2,400
500
8,483
4,917
331
1,546
612
2,114
754
613
-
7,712
6,796
36,778		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total 31
December
2020
£
2,400
500
8,483
4,917
331
1,546
612
2,114
754
613
-
7,712
6,796
36,778		 Total 31
December
2019
£
2,757
500
8,119
10,177
266
885
799
1,786
1,190
613
10
4,525
12,275
43,902

6 Trustee Directors

None of the trustee directors' (or any persons connected with them) received any remuneration during the period ended 31 December 2020. No other transactions with related parties were undertaken such are required to be disclosed under the Companies Act 2006.

7 Employees

There were no employees during the period ended 31 December 2020.

Page 10

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Notes to the Financial Statements for the Year Ended 31 December 2020

8
Tangible assets
Cost or valuation
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
Eliminated on disposal
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019
9
Stocks
Stock
10 Debtors
Other debtors
11 Creditors
Due within one year
Other creditors		 Land and
buildings
£
6,632
-
-
6,632
-
-
-
-
6,632
6,632		 Motor
vehicles
£
78,346
1,378
(33,722)
46,002
41,520
6,796
(22,701)
25,615
20,387
36,826		 Motor
vehicles
£
78,346
1,378
(33,722)
46,002
41,520
6,796
(22,701)
25,615
20,387
36,826		 Plant and
machinery
£
105,409
2,240
-		 Total
£
190,387
3,618
(33,722)
160,283
134,519
14,508
(22,701)
126,326
33,957
55,868
2019
£
2,694
107,649
92,999
7,712
-
25,615 100,711
20,387 6,938
36,826 12,410
2020
£
2,190
2020
£
8,050
8,050
2020
£
2,620
2019
£
6,391
6,391
2019
£
1,880

12 Company Status

The company is a private limited company, limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation. The company is controlled by the trustee directors.

Page 11

Hope Cove Life Boat (formerly The Hope Cove Life Boat) (Limited by Guarantee)

Notes to the Financial Statements for the Year Ended 31 December 2020

13 Analysis of Net Assets Between Funds

13 Analysis of Net Assets Between Funds
Analysis of Net Assets Between Funds
Fixed assets
Net current assets		 Unrestricted
funds
£
33,957
134,494
168,451		 Restricted
funds
£
-
-
-		 Total 31
December
2020
£
33,957
134,494
168,451

14 Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Movement in fixed assets
(Increase) / decrease in stock
(Increase) / decrease in debtors
Increase / (decrease) in creditors		 2020
£
9,934
21,911
504
(1,659)
740
31,430		 2019
£
(3,188)
(1,081)
(134)
420
340
(3,643)

Page 12