(REGISTERED CHARITY NUMBER.. 11840131 RNLI LIFESAVING ENDOWMENT REPORT AND FINANCIAL STATEMENTS FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021
RNLI LIFESAVING ENDOWMENT REPORT AND FINANCIAL STATEMENTS FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 Page OFFICERS AND PROFESSIONAL ADVISERS TRUSTEES, REPORT STATEMENT OF TRUSTEES, RESPONSIBILITIES INDEPENDENT AUDITOR'S REPORT 7-10 STATEMENT OF FINANCIAL ACTIVITIES 11 BALANCE SHEET 12 STATEMENT OF CASH FLOWS 13 NOTES TO THE FINANCIAL STATEMENTS 14-21
RNLI LIFESAVING ENDOWMENT OFFICERS AND PROFESSIONAL ADVISERS FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 Unless otherwise stsled, Trustees served for the full 18-month period. TRUSTEES: E Donaldson C Hunter-Pease (resigned 14 December 2021 > S Popham R Boddinglon P O'Leary D Vvoulfe M Wordsworth lappolnted 14 December 2021) REGISTERED OFFICE: West Quay Road Poole Dorset BH151HZ AUDITOR: BDO LLP 55 Baker Street London W1U 7EU BANKERS: Barc5ays Bank PLC Apex Plaza Forbury Road Reading RG1 1AX INVESTMENT MANAGERS: Stale Street Global Advisors IFM Investors Threadneedle INVESTMENT ADVISORS: Lane Clark & Pe8ck LLP CUSTODIANS: The Northem Trust Company
RNLI LIFESAVING ENDOWMENT TRUSTEES, REPORT FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 The Trustees present their report along with the financial statements of the charity whlch cover the 18-monlh period lo 31 December 2021. The financial slalements have been prepared based on the accounting policies sel out in note 1 to the financial statements and comply with the Charitable Incorporated Organisalion's (CIO) governing document. RNLI Lifesaving Endowment Is registered with the Charily Commission under registration number 1184013. OBJECTIVES AND ACTIVITIES The objects of the RNLI Lifesaving Endowment as per ils registered conslilulion are the advancement of saving lives al sea by establishing. building and investing an endowment fund which is capable of supporting the Royal National Lifeboat Instilulion's IRNLII rescue services. The CIO was created with an initial donation from the RNLI of £42.3m. In seeking lo preserve the RNLI'S lifesaving services for the future, the CIO'S asgels will be invested In order to maintain and if possible enhance their real lafler inflation) value and provide a source of funding to support the RNLI operations. Charitable status and public beneflt The Trustees confirm that they have referred lo the guKlance contained in the Charity Commission's general guidance on public benefit when reviewing the Gharily's aims and objectives and in planning future activities. The Trustees consider the CIO to be charitable both in its intention and practice. providing subslanlial public benefit by preserving the RNLI'S ability to save lives al sea. FINANCIAL REVIEW. ACHIEVEMENTS AND PERFORMANCE For the 18-month period lo the 31 $1 December 2021 investments produced a lolal return of 18.OVo. Property provided returns of 21.30/0 and Global equities 32.1°/o, although a relatively high level of Cash throughout reduced the overall return. Overall, there was a surplus for the period of £6.8M. mainly due lo investment gains of£6.9M. Total income was £0.9M, principally due to investment income of £O.6M and 8 donation from the RNLI of £326k1£274k of which related lo the Elizabeth O'Kelly Fund) for income accumulated on the fund$ as they were held awaiting set-up of the CIO. There has also been a small donation of £16K in 2021. A lolal donation of £930K was made in 2021 towards the RNLI'S rescue services, in line with overall objectives and representing around 1Yo of the investment values over the last 2 years. £121K of this donation will be made towards the RNLI'S rescue services in Ireland. In 2021, there was subslanlial movement towards the new investment strategy wlth £7.OM transferred from cash into equities. Al the end of 2021, £29.8M was invested in global equities, £8.4M in commercial propety unit trusts and £10.8M was held in cash pending investment into an infraslruclure fund. For 2022, the intention is to complete the investment of the cash into Infraslruclure. as per the investment strategy and continue to donate at least 10/0 of overall inveslrnent values to help fund the RNLI'S lifesaving services. INVESTMENT STRATEGY & POLICY The investment strategy is to have a long-lerm growth portfolio with modest income reqU1ment that: Generates a real return over the long term through both capital growth and income. Some illiquidity is acceptable. Some mark-to-market volalilily is acceptable. These objectives are PUTsued through a strategic investment policy which involves investing in a broadly diversified spread of assets, covering global equities, pooled property funds and pooled infraslruclure funds. In formulating and reviewing the investment policy. the RNLI'S Investment Committee IICI has considered a
RNLI LIFESAVING ENDOWMENT TRUSTEES, REPORT FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 range of investment options and the need for diversbficalion and has regard lo the investment policles being pursued by the Trustees of the RNLI'S other charitable reserves and the Trustees of the RNLI 1983 Contributory Pension Scheme. recognising that the RNLI'S overall market exposure is lo the aggregate of these distinct asset pools. Before exercising any power of investment, the IC obtains advice from a suitably qualified advisor. The IC intends lo move towards the following asset allocation over lime, allowing for market conditions which includes the wider economic environment, liquidity in markets and the risk of an economic downturn.. Global Equities- 60°h * Infrastructure- 20W . Property-20% The allocation followed at any Ilme shall be a matter to be considered by the IC on a regular basis. and proposals for any material change In strategy shall be ratified by the Trustee Board before implementation. The Trustees have carefully considered the requiremonls of the Statement of ReGommended Practice ISORP) and the Charity Commission's revised guidance note CC14 (issued in October 2011) and do not believe there is any listed investment adverse to the purpose of Ihe CIO (saving lives at seal. In relatlon to funds Whe the investment manager is permitted lo make active decisions about the selection. relenllon and realisation of investments, the Trustees expect the investment managers lo lake account of all financlally material Gonsideralions (including climate change and other environmental, social and governance consideralionsl, where permissible within applicable guidelines and reslriclions. The Trustees seek to appoint managers that have appropriate skills and processes to do this, and from lime-to-lime review how the managers are taking account of these issues in practice. All our managers are signatories to the UN Principles for Responsible Investment. Resgrves Pollcy The Trustees note that at the end of December 2021 reserves tolalled £48.5M. the majority of which are held as an expendable endowment. Of that, £42M is held as the RNLI Lifesaving Endowment for the advancement of saving lives at sea and £6.5M is held as the Elizabeth O'Kelly Fund for the advancement of saving lives at sea in or around Ireland. The Trustees continue to review their reserves policy lo ensure there are adequate reserves available to meet future requirements. Risk management The nature of the charity means that the main risk for the organisalion is investment risk. Investment risk represents the likelihood that investment values will fall significantly, and this is managed through a Statement of Investment Principles and an investment strategy, which is approved by the Trustees. The Trustees rely on the RNLI'S Investment Commillee, using professional investment advisors. to manage this risk and maximise investment returns al an acceptable risk level that is measured using a Value at Risk (VARI metric. PLANS FOR FUTURE PERIODS While il is recognised that the Trustees have powers lo donate Capital to the RNLI in exlremis, the long-lerm plans focus on growing the Endowment through further donations and an investment strategy focused on capital growth. Over the next twelve months the key goal will be to finalise the investment strategy lo meet the charity's objectives and ensure it is still sound in the current economic environment and in line with the overall objectives.
RNLI LIFESAVING ENDOWMENT TRUSTEES, REPORT FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 STRUCTURE, GOVERNANCE AND MANAGEMENT The RNLI Lifesaving Endowment is regulated by ils Constitution as a Charitable Incorporated Organisalion and was registered on 20 June 2019 with the Charity Commission of England and Wales (11840131. The address of the registered office is West Quay Road, Poole, Dorsel, BH15 1 HZ. The Trustees consider the Trustees of the RNL5 to be the ultimate controlling party due to their ability lo appoint a majority of Trustees to the board. Organlsational structure The Cons151ution allows for a minimum of three Trustees lo be appointed. Aside from the first Charity Trustees Ilsted below, every Trustee shall be appointed for a term of three years. All of the original Trustees have long experience of being a charrty Iruslee. The Trustees are unpaid and details of Trustee expenses and any related paty transactions are disclosed in notes 5 and 12 to the accounts. The Charity Trustees manage the affairs of the CIO. They are responsible for selling strategy and are responsible in law for the running of the RNLI Lifesaving Endowment. The Trustees who served during the period were as follows= E Donaldson (Chair) C Hunler-Pease (resigned 14 December 2021) S Popham R Boddinglon P O'Leary D Woulfe M Wordsworlh (appointed 14 December 2021) E Donaldson. S Popham, D Woulfe and M Wordsworth are also RNLI Trustees. Where new Trustees are appointed, they will be given a formal induction lo the work of the trust and provided with the information they need to fulfil their roles, which includes information about the role of Trustees. the organisation and charity law. New Trustees will be appointed by the RNLI following an interview process and where they have the necessary skills lo contribute lo the charity's management and development. Any appointment musl be made al a meeting held according lo the ordinary practice of the RNLI. The RNLI in exercising its rights of appointment, or removal. will ensure that at least Charity Trustees are not also current Trustees or employees of the RNLI. The Charity Trustees may delegate any of their powers or functions to a commillee or committees. and. if they do, they shall determine the terms and conditions on which the delegallon is made. Board meetings will be held as and when required bul no less frequently than twice per year. The Charity Tnjstees may appolnt one of their number to chair their meetings and may at any time revoke such appolntmenl. The Chair shall ordinarily be the Chair of RNLI for the time being unless the Charity Trustees have for gocKI reason decided olherwise. The members of staff engaged in the day-to-day adminislralion of the RNLI Lifesaving Endowment are employed by the RNLI. The RNLI Lifesaving Endowment reimburses the RNLI for any direct costs incurred.
RNLI LIFESAVING ENDOWMENT TRUSTEES, REPORT FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 REFERENCE AND ADMINISTRATIVE DETAILS Reference and adminislralive details are shown in the schedule of officers and professional advisers on page1. PROVISION OF INFORMATION TO AUDITORS In determining how amounts are presented within items in the statement of income and retained earnings and balance she8t. the Trustees have had regard lo the substance of the reported transaction or arrangement, in accordance with generally accepted accounting principles or practice. So far as each of the Trustees is aware at the lime the report is approved.. there is no relevant audit information of which the charity's auditors are unaware. and the Trustees have tsken all steps that they ought lo have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITOR The auditor, BDO LLP, will be proposed for reappointment in accordance with section 144 of the Charities Ac12011. Approved by the Trustees on 18 March 2022 and signed on ils behalf by.. E Donalds Trustee
RNLI LIFESAVING ENDOWMENT STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 The Trustees are responsible for preparing the Trustees. Report and the financial slalements in accordance with applicable law and regulations. Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice {United Kingdom Accounting Standards and applicable law). Under charity law, the Trustees must not approve the flnancial statements unless they are satisfied that they give a true and fair view of the stale of affairs of the charlly and of ils surpl¢Js or deficit for that period. In preparing these financial stalemenls, the Trustees are required lo.. select suitable accounting policies and then apply them consislenlly make judgements and estimates that are reasonable and prudent slate whether applicable accounting standards have been followed. subject lo any material departures disclosed and explained in the financial slalemenls prepare the financial slalements on the going-concern basis unless it Is inappropriate to presume that the charity will continue to operate. The Trustees are responsible for keeping proper accounting records. These musl be sufficient to show and explain the charity's transactions and disclose with reasonable accuracy al any lime the financial position of the charity, and enable them to ensure that the financial slalements comply with the UK Charities Act 2011 and applicable accounting regulations. They are also responsible for safeguarding the assets of the charity- and. therefore, for taking reasonable steps lo prevent and detect fraud and olheT irregularities.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RNLI LIFESAVING ENDOWMENT FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 Opinion on the flnanclal statements In our opinion. the financial statements- give a true and fair view of the slate of the Charity's affairs as at 31 December 2021 and of its incoming resources and application of resources for the period then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared In accordance with the requifements of the Charities Act 2011. We have audited the financial slalemenls of RNLI Lifesaving Endowment I'the Charily°} for the 18-month period ended 31 December 2021 which comprise the slalement of financial aclivilies. the balance sheet. the statement of cash flows and notes to the financial slatemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is app5icable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Slandard applicable in the UK and RepubliG of Ireland (United Kingdom Generally Accepted Accounting Praclicel. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing {UKI IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provlde a basis for our opinion. Independenc8 We remain independent of the Charity in accordance with the ethlcal requirements relevant lo our audit of the f1nancial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with Ihese requirements. ConGlusions rolated to going concern In auditing the financial stalemenls, we have concluded that the Trustees, use of the going concern basls of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the Charity's ability lo continue as a going concern for a period of at least e1ve months from when the financial Statements are authorised for issuo. Our responsibilities and the responsibilities of the Trustees with respect lo going concem are described in the relevant sections of this report.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RNLI LIFESAVING ENDOWMENT FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 (CONTINUED) Other information The Trustees are responsible for the other information. The other information comprises the information included in the Report. other than the financial slalemenls and our auditor's report Ihereon. The other information comprises.. The Trustees, Report. Our opinion on the financial 51atemenls does not cover the other information and, except lo the exlenl otherwise explicitly staled in our report, we do not express any form of assurance conclusion Ihereon. Our responslbility is lo read the other information and, in doing so. consider whether the other information is materially inconsislenl with the financial slalements, or our knowledge obtained in the audit or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misslalements, we are required to determine whether there 15 a material misstatement in the financial statements or a material mi5Stalement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required lo report that fact. We have nothing to report In this regar(l. Matters on whlch wg are requlred to report by exceptlon We have nothing to report in reswt of the following matters in relation to which the Charities Act 2011 requires us to report to you rf, in our opinion,. the informatlon contained in the financial stalemenls is inconsistent in any material respect with the Trustees, Report., or adequate accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. Rgsponslbllltigs of Trustoes As explained more fully in the Statement of Trustees. responsibilities, the Trustees are responsible for the preparalh)n of the financial statements and for being satisfied that they give a true and fair view. and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misslatemenL whether due lo fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, malleTS related to going concern and using the going conrn basis of accounting unless the Trustees either intend to liquidate the Charity or lo cease operations, or have no realistic alternative but lo do so. Auditorfs responsibllltles for the audlt of thg financial stat&ments We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misslalemenl. whether due to fraud or error. and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS {UK} will always delecl a material misslatemenl when it exists. Misstalemenls can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be expe¢led to influence the economic decisions of users taken on the basis of these financial slalements.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RNLI LIFESAVING ENDOWMENT FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 (CONTINUED) Extent to which the audk was capable of delecling IrregularitS, indudirw fraud Irregularities, Including fraud, are instanS of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delecl material misslalemenls in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities. including fraud is detailed below.. Based on our understanding of the Charity and the industry in which it operates, we identified that the principal laws and regulations that diTeclly affect the financial slalements lo be the Charities Act 2011. We assessed the extent of compliance with these laws and regulations a5 part of our procedures on the related financial slalement Items. In addition the Charity Is subject lo many other laws and regulations where the consequences of non- compliance could have a material effect on amounts or disclosures in the financial slalemenls, for instance through the imposition of fines or liligalion. We identified the following areas as those most likely lo have such an effect: employment law. data protection and health and safely legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations lo enquiry of the Trustees and other management and inspection of regulatory and legal correspondence if any. Audit procedures performed by the engagement team included.. Discussions with group management and internal audit. including consideration of known or suspected instances of non-compliance with laws and regulations and fraud., Reading minutes of meeting of those charged with governance. reviewing internal audit reports and the various charity commission. Reviewing items included in the group's fraud and theft dalabage as well 8s the results of internal audit's investigation into these matters. Confirming all balances included with in investments lo direct third party confirmations.. and In addressing the risk of fraud through management override of controls,. testing the appropriateness of joumal entries and other adjustments, in particular any journals posted by senior management or with unusual accounts combinations Our audll procedures were deslgned lo respond lo risks of material misslalemenl in the financial slatemenls, recognising that the risk of not detecting a material misslalemenl due lo fraud is higher than the risk of not detecting one resulting from error. as fraud may involve deliberate concealment by. for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial stslemenls. the less likely we are to become aware of it. A further description of our responsibllilles for the audit of the financial statements is located at the Financial Reportlng Council's I"FRC's"I website al-. hllps.'Ilwww.frc.org.uklaudilorsresponsibilities. This description forms part of our auditor's report.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RNLI LIFESAVING ENDOWMENT FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 (CONTINUED) Use of our roport Thls report is made solely lo the Charity's Iruslees. as a body. in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might stale to the Charity s Iruslees those mallers we are required lo slate lo them in an audilorfs report and for no other purpose. To the fullest exlenl permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity's trustees as a body. for our audit work, for this report. or for the opinions we have formed. DO¢uSlgntsY'. EDO LLP F3D8818FE9AC4C9 BDO LLP. statutory auditor London, UK Date 08 June 2022 BDO LLP is eligible for appointment as auditor of the charity by vlrtue of its eligibility for appointment as audllor of company under section 1212 of the Companies Act 2006. BDO LLP is a limited Ilability partnership registered In England and Wales (wllh reglslered number OC3051271. 10
RNLI LIFESAVING ENDOWMENT STATEMENT OF FINANCIAL ACTIVITIES FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 Note Unrgstricted funds £'ooo Restricted funds £'ooo Endowgd funds £'ooo Total 2021 £'ooo Totsl 54-wegk period to 30 June 2020 £'ooo Incomg and endowments from: Oonations and le Investments Total income and endowments acles 16 479 495 326 342 550 892 42.319 99 42,418 7¢ 71 71 326 endlture on: Raisin funds Charitable activities Total expenditure 16 489 505 30 76 76 371 371 936 952 30 Net gainslllosses} on investments 7b 6,900 6,900 (748) Net in¢omèl <10) 15) 6,85S 6,840 41,640 ex onditurg Reconelliation of funds: Funds at 1 Jul 2020 Movement in funds Funds at 31 Dgcember 2021 56 10 46 13 41.571 6.855 48.426 41.640 6,840 48,480 41,640 The Statement of Financlal Activities includes all gains and losses recognised in the perlod. All income, expenditure and resulting nel movements are derived from continuing activities Notes 110 14 form part of these financial slatemenl9.
RNLI LIFESAVING ENDOWMENT BALANCE SHEET REGISTERED CHARITY NUMBER: 1184013 AS AT 31 DECEMBER 2021 31 December 2021 £'ooo 30June 2020 Note £'ooo Fixed asset9: Investments 48,953 41,670 Total flxed assets 41,670 Current assgts.. Debtors Liabilities: Creditors.. Amounts fallin due within one ear 489 30 Net curront liabllltles 473 30 Totsl assets less current Ilabllltles 48.480 41.640 The funds of the charit endable endowment funds Reslricled funds Unreslricled funds Total charit funds 10b 10c 48,426 41,571 13 56 The accounts of the RNLI Lifesaving Endowment were approved and authorised for issue by the Trustees on 18th March 2022 and signed on ils behalf by E Donaldson Trustee Notes 1 10 14 form parl of these financial statements. 12
RNLI LIFESAVING ENDOWMENT STATEMENT OF CASH FLOWS FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 2021 £'ooo 2020 £'ooo Cash flows from oporatin actlvltles: Net cash used in operatlng aGtivities 167 Cash flows from Investin activltles: Dividends, interest and rents from invegtmenls Purchase of investments Proceeds from sale of investments Net cash mvlde(I b investln activlties 550 550 122 122 99 Cash flows from flnanclng activitiès.. Additions lo endowment Dis osal of endowment 28,161 28.206 Net cash provided by financin actlvities Change in cash and cash equivalents In the ortin riod Reconclllation of cash flow: Cash and cash equivalents at the beginning of the reporting period Changè In cash and Gash In the roportin period Cash and cash equivalents at tho end of the rtin eriod ReGonclllatlon of not Income to ngt cash flow from operating activities 2021 £'ooo 2020 £'ooo Net inGome/ for the reportlng perlod (as per the statement of flnancial actlvltles) 6,840 41.640 Ad ustmonts for: IGainslAosses on investments Investment income Increase in creditors Increase in debtors Investment capital transferred by RNLI 6,900 550 459 16 748 99 30 42.319 Net cash used in o eratin activlties 167 Notes 110 14 form part of these financial slalemenls. 13
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 ACCOUNTING POLICIES The RNLI Lifesaving Endowment was registered as a Charitable Incorpor21ed Organisation on 20 June 2019 with the Charity Commission of England and Wales (1184013). The address of the registered office is West Quay Road, Poole. Dorsel, BH15 1 HZ. Basls of aG¢ountlng The financial slatemenls have been prepared urKler the historical cost convention. These accounts are prepared in accordance with the Charities SORP {FRS 102) 'Accounling and Reporting by Charities.. Statement of Recommended Practice applicable lo Gharllies preparing their accounts in acGordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland IFRS 1021 {effeclive 1 st January 2019}', Financial Reporting Standard 102 ' The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Charities Act 2011. The RNLI Lifesaving Endowment meets the definition of a public benefit entity under FRS 102. The financial statements cover the 18-month period from 1 Juty 2020 10 31 December 2021. b) Crltical accounting judgements and key sources of estimation uncertalnty Preparation of the financial slalemenls requires the Trustees lo make judgements and estimates. The Trustees consider that there are no material judgements in appSying accounting policies or key sour¢es of estimation unceTlainty- Assessment of going concern The Trustees have assessed whether the use of the going concern assumption Is appropriate in preparing these financial slatemenls. The Trustees have made this assessment In respect lo a period of one year from the date of approval of these financial statements. The Trustees of the charity have concluded that there are no material uncertainties related lo events or conditions that may cast significant doubl on the ability of the charity to continue as a going concern. The Trustees are of the opinion that the charity will have sufficient resources to meet ils liabilities as they fall due. d) Income Incoming resources are included in the SOFA when the RNLI Lrfe5aving Endowment Is entitled lo the income, the receipt is probable, and the amount can be quantified wllh reasonable accuracy. If these conditions are not mel the income is deferred. Donations mad8 by the RNLI are recognised as income in the charity either when paid or al the date when the RNLI has a legal liability lo make the donation payment if earlier. All external donations are accounted for when received. Investment income is recognised on a receivable basis. 14
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 Expendlture All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. ITfecoverable VAT is charged as an expense against the activity for which the expenditure arose. Costs of raising funds includes the legal fees incurred in the eslablishmenl of the RNLI Lifesaving Endowment and investment fees. Expenditure on charitable activities comprises donations and allocated support costs. Donations are recognised in the financial slalements following approval by the Trustees. Investments Investments held as fixed assets and for which there is a quoted market value are valued al the bid- price ruling at the balance sheet dale. Investment gains and losses arising during the year are included in Ihe SOFA. gl Fund CoUntIng The RNLI Lifesaving Endowment funds fall into the following categories.. Expendable endowments are capital sums that are donated under the reslriclion that they are invested and that only the income arising is available for expenditure in accordance with the donors, d1Ctions. These capital sums may be spent at the discretion of the Trustees of the RNLI Lifesaving Endowment. where necessary. and in accordance with the donors. directions. Regtricted fullds are only available for expenditure in accordance with the donors, directions. Unreslricled funds are sums that are freely available for general use within the Charitable Objectives. h) Pregentatlon Gurrency The functional currency of the RNLI Lifesaving Endowment is in pounds sterllng because that Is the currency of the primary economic environment in which the charity operates. Exchange rate galns and losses Transactions in foreign currencies are recorded using the rate of exchange rullng al the date of the Iransacuon. Monetary assets are translated at the rale of exchange ruling al the balance sheet date. Gains and losses on exchange are included in the SOFA. i) Taxatlon The RNLI Lifesaving Endowment is exempl from lax on income and on gains falling within sections 518 and 564 of the Income Taxes Act 2007 or section 256 of the Taxation of Chargeable Gains Act 1992 to the exlenl that these are applied lo its charitable objects. No lax ¢harges have arisen in the Fund. Flnanclal Instruments The Gharily only has financial assets and financial liabilities of a kind that quallfy as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their setuement value. 15
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 DONATIONS AND LEGACIES 2021 £'ooo 2020 £'ooo Donation from RNLI Donations 326 16 42,319 342 RESOURCES EXPENDED Dlrert costs Othgr alloeated costs Total 2021 £'ooo 16 936 Total 2020 £'ooo 30 £'ooo £'ooo Raislng funds Charitable activities Support costs 16 929 17) 952 30 952 30 30 Total 2020 Support costs are allocated to relevant categories based on their percentage share of overall direct costs. Charitable activities comprise one donallon made to the RNLI. SUPPORT COSTS Total 2021 £'ooo Total 2020 £'ooo Audit fees Legal fees 21 26 Audit fees of £7K (inclusive of VATI are payable lo the external auditor. TRUSTEES, EXPENSES AND REMUNERATION No Trustees, or any persons connected with them. received remuneration. There were no Iruslees, expenses paid during the period. STAFF COSTS There were rK) employees during the perlod. 16
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 INVESTMENTS HELD FOR MORE THAN ONE YEAR All investments are basic financial instruments and are measUd at fair values Unrestricted funds £'ooo Restricted funds £'ooo Endowgd funds É'ooo Total 2021 Total 2020 £'ooo £'ooo Investment assets uities Pro ert Cash arsd de osits Market value at 31 December 2021 29.802 8,376 10,248 48.426 17,og6 7,205 17.369 41,670 8,376 10,775 48.953 456 456 71 71 (bl Analysis of movement Market value at 1 July 2020 Additions Transfers Dis osals Gainsl{lossesl on investment Market value at 31 December 2021 Ori Inal cost 13 41,571 41,670 479 71 28,161 28,711 99 42,319 109 13 28,206 6.900 28,328 6.900 {7481 456 71 48,426 48,953 41,670 456 71 45.636 46.163 Investment Income uilies Pro Cash and de Total 479 71 550 99 osits 479 71 550 DEBTORS Total 2021 £'ooo Total 2020 £'ooo RNLI debtor 16
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 CREDITORS Total 2021 £'ooo Total 2020 £'ooo Awruals RNLI creditor 30 489 489 30 10. FUNDS ANALYSIS a) Balance Sheet- analysis of funds 2021 summary Unrestrictgd funds 2021 £'ooo 456 410 Restrlcted funds 2021 £'ooo 71 63 Endowed funds 2021 £'ooo 48,426 Total 2021 £'ooo Investments Net current assets Total 48,953 473 48,480 48,426 b} Endowed funds- analysis of major funds Name fund of Purposg fund of Opening balance 2021 £'ooo 36,168 Investment galns 2021 £'ooo 6.003 Incorne Expendlture Closing balancè 2021 £'ooo 41.896 2021 £'ooo 52 2021 £'ooo 13271 RNLI Lifesaving Endowment The advancement of saving lives al sea The advancement of saving lives at sea in Ireland Elizabeth O'Kelly Fund 5,403 897 274 1441 6,530 Total endowed funds 41,571 6.900 326 1371) 48,426 c} Restricted funds- analysis of major funds Name offund Purpose of fund Openlng balance 2021 £'ooo Income Expenditurg Closlng balance 2021 £'ooo 2021 £'ooo 71 2021 £'ooo 176) Elizabeth O'Kelly Fund The advancement of saving lives al sea in Ireland Total endowed funds 13 71 (76) 18
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 11. FINANCIAL COMMITMENTS There were no capital commitments at the end of the period There are no other liabilities, Gontingent or otherwise, that are not provided in these accounts. 12. RELATED PARTY TRANSACTIONS The RNLI L eSaving Endowment donated £930K12020'. £Nil} to the RNLI during the period. An additional donation of £326K was made in 2021 by the RNLI (2020: £42.3MI. The RNLI recharged the administration costs of the charitable incorporated organisalion, for example, auditor fees. legal fees and investment fees. The RNLI also provided accounting support for which no charge was made. 13. ULTIMATE CONTROLLING UNDERTAKING RNLI Lifesaving Endowment is consolidated into the financial statements of the Royal National Lifeboat Institution. The ultimate controlling undertaking is the Royal NalDnal Lrfeboal Institution, incorporated under Royal Charler in the United Kingdom. Copies of the consolioaled financial statements of the Royal National Lifeboat Instilulion, including RNLI Lifesaving Endowment, can be obtained from Wesl Quay Road, Poole, Dorset. BH15 1HZ. 19
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 14. 2020 COMPARATIVES- FUNDS All comparatives for 2020 are for the period 20 June 2019 to 30 June 2020. a. Statement of Flnancial Activities- pvIOuS year comparatives Note Unrestrlcted funds £'ooo Restricted funds £'ooo Endowed funds £'ooo Total 2020 £'ooo Income and endowments from: Donations and le Investments Total income and endowments acies 42,319 42,319 99 42,418 7c 86 86 13 13 42,319 Expenditure on.. Raisin funds Total expenditure 30 30 30 30 Net (losses) on investments 7b (7481 (748) Net income 13 41,640 Reconciliation of funds: Total funds carried forward 56 13 41.571 41,640 b. Consolidated balance sheet- analysis of funds 2020 summary Unrèstrlcted funds 2020 £'ooo 86 30 56 Restricted funds 2020 £'ooo 13 Endowgd funds 2020 £'ooo 41,571 Total 2020 £'ooo Investments Creditors Total 41,670 30 41.640 13 41,571 20
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2021 14. 2020 COMPARATIVES- FUNDS (CONTINUED) . Resources expended Dlrect costs Other allocated costs £'ooo 26 (26) Total 2020 £'ooo £'ooo 30 Raising funds Support costs 26 30 30 Support costs are allocated to relevant calegortes based on Ihelr percentage share of overall direct osts. d. Endowed funds- analysis of major funds Name of fund Purpose of fund Opening balance 2020 £'ooo Investment (losses) 2020 £'ooo {6511 Transfers Closing balance 2020 £'ooo 36,168 2020 £'ooo 36,819 RNLI Lifesavir Endowment Elizabeth O'Kelly Fund The advancement of savin lives at sea The advancement of saving lives al sea in Ireland {97) 5.500 5,403 Total endowed funds (748) 42,319 41,571 Restricted funds- analysis of major funds Name of futid Purposo of fund Oponing balance 2020 £'ooo Income Expendlture Closing balance 2020 £'ooo 13 2020 £'ooo 13 2020 £'ooo Elizabeth O'Kelly Fund The advancement of saving lives al sea in Ireland Total endowèd funds 13 13 21