(REGISTERED CHARITY NUMBER: 11840131 RNLI LIFESAVING ENDOWMENT REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
RNLI LIFESAVING ENDOWMENT REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Page OFFICERS AND PROFESSIONAL ADVISERS TRUSTEES, REPORT STATEMENT OF TRUSTEES, RESPONSIBILITIES INDEPENDENT AUDITOR'S REPORT 7-10 STATEMENT OF FINANCIAL ACTIVITIES BALANCE SHEET 12 STATEMENT OF CASH FLOWS 13 NOTES TO THE FINANCIAL STATEMENTS 14-21
RNLI LIFESAVING ENDOWMENT OFFICERS AND PROFESSIONAL ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022 Unless othenNise slated, Trustees served for the full year. TRUSTEES: E Donaldson S Popham (resigned 22 July 20221 R Boddinglon P O'Leary D Woulfe M Wordsworth J Islam lappoinled 2 March 20221 REGISTERED OFFICE: Wesl Quay Road Poole Dorset BH15 1HZ AUDITOR: BDO LLP 55 Baker Street London W1U 7EU BANKERS: Barclays Bank PLC Apex Plaza Forbury Road Reading RG1 1AX INVESTMENT MANAGERS: Slate Street Global Advisors IFM Investo Threadneedle INVESTMENT ADVISORS: Lane Clafk & Peacock LLP CUSTODIANS: The Northern Trust Company
RNLI LIFESAVING ENDOWMENT TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees present their report along with the financial statements of the charity which cover the year ended 31 December 2022. The financial statements 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 Charity Commission under registration number 1184013. OBJECTIVES AND ACTIVITIES The objects of the RNLI Lifesaving Endowment as per ils registered constitution are the advancement of saving lives al sea by establishing, building, and investing an endowment fund which can support the Royal National Lifeboat Institution's IRNLII rescue services. The CIO was created with an initial donation Irom the RNLI of £42.3M. In seeking lo preserve the RNLI'S lifesaving services for the future, the CIO'S assets will be invested in orLler to maintain and if possible. enhance their real (after inflalionl value and provide a source of funding lo support the RNLI operations. Charitable status and public beneflt The Trustees Confirm that they have referred lo the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. The Trustees consider the CIO to be charitable both in its intention and practice, providing substantial public benefit by preserving the RNLI'S ability to save lives al sea. FINANCIAL REVIEW, ACHIEVEMENTS AND PERFORMANCE For the year to the 31 December 2022 investments produced a total loss of-3.4D/o. Propeity provided losses of -10.1¥0 and Global equities -8.80/0, although this was offset by gains of 14.80kn in InfrastrLJCture and some holdings in cash throughout the year. Overall, there was a deficit for the period of -£2.5M, mainly due lo investment losses of -£2.4M. Total income was £0.3M, principally due lo investment income 1£47k of which related to the Elizabeth O'Kelly Fund). A total donation of £459K was made in 2022 towards the RNLI'S rescue services, in line with overall objectives and representing around 1 Yo of investment values as at the end of 2022. £62K of this donation was made towards the RNLI'S rescue services in Ireland. At the end of 2022, the charity holds £45.9M of investments, with £27.2M invested in global equities, £7.4M in commercial propety unit trusts and £10.4M held in Infra51ructure. There was also a cash holding of £0.9M that will be moved into global equities in 2023. For 2023, the intention is to continue to donate al least 10k of overall investment values to help fund the RNLI'S lifesaving services. INVESTMENT STRATEGY & POLICY The investment strategy is lo have a long-lerm growth portfolio with modest income requirement that.. Generates a real return over the long term through both c8pII81 growth and income. Some illiquidity is acceptable. Some mark-lo-market volalilily is acceptable. These objectives are pursued through a strategic investment policy which involves investing in a broadly diversified spread of assets, covering global equities, pooled property funds and pooled infrastructure funds. In formulating and reviewing the investment policy, the RNLI'S Investment Committee IICI has considered a
RNLI LIFESAVING ENDOWMENT TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 range of investment options and the need for diversification and has regard to the investment policies being pursued by the Trustees of the RNLI'S other charitable reseives 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 works on behalf of the Trustees of the RNLI and the CIO and there is a requirement Ihat al least 2 members of the IC are Trustees of the CIO. The IC finalised the move lo the desired asset allocation in 2022, as follows.. Global Equities 60. Infraslruclure- 20Yo Property - 20% The allocation followed at any time shall be a maller lo 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 implemenlalion. The Trustees have carefully Considered the requirements of the Statement of Recommended Practice ISORPI and the Charity Commission's revised guidance note CC14 and do not believe there is any listed investment adverse to the purpose of the CIO (saving lives al sea}. In relation to funds wh@re the investment manager is permilled lo make active decisions about the selection, retention and realisation of inveslmenls, the Trustees expect them lo lake account of all financially material considerations (including climate change and other environmental, social and governance considerations), where permissible within applicable guidelines and restrictions. The Trustees seek lo appoint managers that have appropriate skills and processes to do this, and from lime-lo-lime review how the managers are taking account of these issues in practice. All our managers are signatories lo the UN Principles for Responsible Investment. Reserves Policy The Trustees note that al the end of Dernber 2022 reserves lotalled £45.9M, the majority of which are held as an expendable endowment. Of that, £39.7M is held as the RNLI Lifesaving Endowment for the advancement of saving live5 at sea and £6.2M 15 held as the Elizabeth O'Kelty Fund for the advancement of saving lives al sea in or around Ireland. The Trustees continue to review their reserve5 policy to ensure there are adequate reserves available to meet future requirements. Risk management The nature of the charity Than$ 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 Slalement of Investment Principles and an investment strategy, which is approved by the Trustees. The Trustees rely on the RNLI'S Investment Committee, using professional investment advisors, lo manage this risk and maximise investment returns at an acceptable risk level that is measured using a Value at Risk (VARI metric. PLANS FOR FUTURE PERIODS While it is recognised that the Trustees have powers lo donate capital lo the RNLI in extremis, 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 ensure the investment strategy meets the charity's objectives and that il is still sound in the current economic environment.
RNLI LIFESAVING ENDOWMENT TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 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 Wales111840131. The address of the registered office is Wesl Quay Road, Poole, Dorsel, BH15 1 HZ. The Trustees consider the Trustees of the RNLI lo be the ultimate controlling party due lo their ability lo appoint a majority of Trustees to the board. Organisational structure The Constitution allows for a minimum of three Trustees to be appointed. Aside from the first Chaiily Trustees listed below, every Trustee shall be appointed for a term of three years. All of the original Trustees have long experience of being a charity trustee. The Trustees are unpaid and details of Trustee expenses and any related party 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) S Popham (resigned 22 July 20221 R Boddington P O'Leary D Woulfe M Wordsworth J Islam (appointed 2 March 20221 D Woulfe, M Wordsworth and J Islam are also RNLI Trustees. On 22 July 2022, E Donaldson and S Popham stepped down as RNLI Trustees. Vvhere new Trustees are appointed, they will be given a formal induction lo the work of the trust and provided with the information they need lo 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 must be made at a meeting held according lo the ordinary practice of the RNLI. The RNLI in exercising ils 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 lo a committee or commillees, and, if they do, they shall determine the terms and conditions on which the delegation is made. Board meetings will be held as and when required bul no less frequently than lce per year. The Charity Trustees may appoint one of their number lo chair their meetings and may al any lime revoke such appoinlmenl. The Chair shall ordinarily be the Chair of RNLI for the time being unless the Charity Trustees have for good reason decided otherwise. The members of staff engaged in the day-to-day administration 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 YEAR ENDED 31 DECEMBER 2022 REFERENCE AND ADMINISTRATIVE DETAILS Reference and administrative details are shown in the schedule of officers and professional advisers on page 1. PROVISION OF INFORMATION TO AUDITORS In determining how amounts are presented within items in the slalemenl of income and retained earnings and balance Sheet, 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 time the report is approved.. there is no relevant audit information of which the charity's auditors are unaware. and the Trustees have taken 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 reappoinlmenl in accordance with section 144 of the Charities Act2011. Approved by the Trustees on 15U) March 2023 and signed on its behalf by.. E Donaldson Trustee
RNLI LIFESAVING ENDOWMENT STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees are responsible for preparing the Trustees. Report and the financial statements in accordan with applicable law and regulations. Charity law requires the Trustees lo prepare financial statements for each financial year in accordance with United Kingdom Geneially Accepted Accounting Practice Iuniled Kingdom Accounting Standards and applicable lawl. Under charity law, the Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the Slate of affairs of the charity and of ils surplus of deficit for that period. In preparing these financial statements. the Trustee5 are required lo.. select sullable accounting policies and then apply them consistently make judgements and estimates that are reasonable and prudent state whether applicable accounting standards have been followed. subject lo any rnalerial departures disclosed and explained in the financial statements prepare the financial statements 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 must be sufficient to show and explain the charity's transactions and disclose with reasonable accuracy al any time the financial position of the charity, and enable them to ensure that the financial stslemenls 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 delecl fraud and other irregularities.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RNLI LIFESAVING ENDOWMENT FOR THE YEAR ENDED 31 DECEMBER 2022 Opinlon on the financial statements In our opinion. Ihe financial ststements.. give a true and fair view of the slate of the Charity's affairs as al 31 December 2022 and of ils incoming resources and application of resources for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice", and have been prepared in accordance with the requirements of the Charities Act 2011. We have audited the financial slalements of RNLI Lifesavin9 Endowment I'lhe Charity'l for the year ended 31 December 2022 which comprise the slalement of financial aclivilie5, the balance sheet, the statement of cash flows and notes lo the financial slatemenls. including a summary of significant accounting policies. The financial reporting framewoik that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. Basis for oplnlon We condLJCted our audit in accordance with International Standards on Auditing IUKI IISAS IUKI) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remain independent of the Charity in accordance with the ethical requirements relevant lo our audit of the ftnancial slalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Conclusions related to golng concern In auditing the financial statements, we have concluded that the TTuslees' use of the going conrn basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that. individually or collectively. may cast significant doubt on the Charity's ability to continue as a going conrn for a period of al least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going conrn are described in the relevant sections of this report.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RNLI LIFESAVING ENDOWMENT FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED) Other information The Trustees are responsible for the other information. The other information comprises the information included in the Report and Financial Statements. other than the financial slalemenls and our auditor's report thereon. Our opinion on the financial slalemenls does not cover the other information and, except to the exlenl otherwise explicitly slated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial slalemenls or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo determine whether there is a material misslalemenl in the financial slalements themselves. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other information, we are required to report that fact. We have nothing lo report in this regard. Matter8 on which we are required to report by exception We have nothing lo report in respect of the following mallers in relation lo which the Charities (Accounls and Reports) Regulations 2008 requires us lo report to you if, in our opinion., the information given in the Trustees, Report for the financial year for which the financial slalemenls are prepared is inconsislenl in any material respect with the financial slalements., or adequate accounting records have not been kept.. or the financial slalements 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. Responslblllties of Trustees As explained more fully in the Statement of Trustees, reswnsibililies, the Trustees are responsible for the preparalFon of the financial slalemenls and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary lo enable the preparation of financial statements that are free from material misstalemenl, whether due lo fraud or error. In preparing the financial statements, the Trustees are responsib for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, mallers related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic allernalive bul to do so. Auditor's re5ponsibilitles for the audlt of the flnancial Statements 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 lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is 8 high level of assLJrance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misslalemenl when il exists. Misstatements can arise from fraud or error and are considèred material if, individually or in the aggregate. they could reasonably be expected lo influence the economic decisions ol users taken on the basis of these fi'nancial statements.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RNLI LIFESAVING ENDOWMENT FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED Extent to whlch the audlt was capable of detecting irregularltles, including fraud Irregularities, including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delect material misslalemenls in respect of irregularities, including fraud. The extent lo which our procedures are capable of dete¢ling irregularities. including fraud is detailed below.. Based on our understanding of the Charity and the industry in which il operates, we identified that the principal laws and re9ulalions that directly affect the financial statements to be the Charities Act 2011. We asses8ed the exlenl of compliance with these laws and regulations as part of our procedures on the related financial statement items. In addition the Charity is subject to many tsther laws and regulations where the consequences of non- compliance could have a material effect on amounts or disclosures in the fi'nancial stalemenls, for instance through the imposition of fines or litigation. We identified the following areas as those most likely lo have such an effect.. employment law, data protection and health and safety legislation. In order lo help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial stalemenls, we made enquiries of management and those charged with Governance about whether the enlily is in compliance with such laws and regulations and we inspected any relevant regulatory and legal correspondence. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Audit PTo¢edures 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 correspondence with the Charity Commission" Reviewing items included in the group's fraud and theft database as well as the results of internal audit's investigation into these mallers; Confirming all balances included with in investments lo direct third party confirmations.. and In addressing the risk of fraud through management override of controls.. lesling the appropriateness of journal entries and other adjustments, in particular any journals posted by senior management or with unusual accounts combinations Our audit prOdureS were designed lo respond to risks of material misslatemenl in the financial slalements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresenlalions or through collusion. There are inherent limitations in the audit procedure8 performed and the further removed non-¢ompliance with laws and regulations is from the events and transactions reflected in the financial slalemenls, the less likely we are lo become aware of it. A further description of our resy)nsibilities for the audit of the financial 51atemenls is located al the Financial Reporting Council's l FRC'S") website at.. https.'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 YEAR ENDED 31 DECEMBER 2022 (CONTINUED) Use of our report This report 15 made solely lo the Charity's Iruslees, as a body, in accordance with the Charities Act 2011, Our audit work has bèen undertaken so that we might stale to the Charity's trustees those mallers we are required lo stale lo them in an auditor's report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume responsibility lo anyone other than the Charity and the Charity's Iruslees as a body, for our audit work. for this report, or for the opinions we have formed. DO¢uS*nby'. EDO LLP 73D8814FE9AC4C9 BDO LLP, slalulory auditor London, UK Dale 26 April 2023 BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company unLler section 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wales Iwilh registered number OC3051271. 10
RNLI LIFESAVING ENDOWMENT STATEIVIENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 Note Unrestricted funds £'ooo Restricted funds £'ooo Endowed funds £'ooo Total 2022 £'ooo Total 18 month period to 3111212021 £'ooo Income and endowments from: Donations and le Investments Total income and endowment5 acies 342 550 892 7c 298 298 47 47 345 345 Ex enditure on: Raisin funds Charitable a¢livilies Total expenditure 10 318 328 10 467 477 16 936 952 55 55 94 94 Nel gainslllossesl on investments 7b 12,4111 12,4111 6,900 Net incomel 130) (81 {2.5051 {2,5431 6,840 ex enditure Reconciliation of funds: Funds at 1 January 2022 Movement in funds Funds at 31 December 2022 46 48,426 48.480 41,640 30 16 2,505 45,921 2,543 45,937 6.840 48.480 The Statement of Financial Activities includes all gains and losses recognised in the period. All income. expenditure and resulting net movements are derived from continuing activities Notes 1 to 14 form part of these financial slalements.
RNLI LIFESAVING ENDOWMENT BALANCE SHEET REGISTERED CHARITY NUMBER: 1184013 AS AT 31 DECEMBER 2022 31 December 2022 £'ooo 31 December 2021 £'ooo Note Fixed assets: Investments 45,901 Total fixed assets 45.901 48.953 Current assets: Bank and cash Debtors 16 20 16 Total current assets 36 16 Llabilitigs.. Creditors.. Amounts fallin due within one ear 489 Net current assetsl liabilities 36 473 Total assets less current liabillties 45,937 The funds of the charil Ex endable endowment funds Restricted funds Unreslricled funds Total charit funds 10b 10c 45,921 48,426 16 46 48.480 The accounts of the RNLI Lifesaving Endowment were approved and aulhorised for issue by the Trustees on 151h March 2023 and signed on ils behalf by E Donaldson Trustee Notes 110 14 form parl of these financial slalemenls. 12
RNLI LIFESAVING ENDOWMENT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 £'ooo 2021 £'ooo Cash flows from o eratin activltles: Net cash used in operating activitios 970 167 Cash flows from investin activities.. Dividends, interest and rents from investments Purchase of investments Proceeds from sale of investments Net cash providgd by investing actlvities 345 345 872 872 550 550 122 122 Cash flows from financln activlties: Additions lo endowment Disposal of endowment 8,755 28,161 28,206 Net cash rovided by flnancing activities 114 45 Change in cash and cash equivalents in the re ortln erlod 16 Reconciliatlon of cash flow: Cash and cash equivalents at the beginning ol the reporting perlod Chan e in cash and cash in the reportlng perlod Cash and cash equlvalents at thg end of tho re ortln erlod 16 16 Reconclliation of net Income to net cash flow from operatlng actlvltles 2022 £'ooo 2021 £'ooo Net income/ for the reporting perlod (as per the statement of financial activities) 6,840 Adjustments for: Lossesl ainsl on investments Investment income Decreasellincrease in creditors Increase in debtors 2,411 345 489 6.900 550 459 16 Net ¢ash used In o oratin activitigs 970 167 Notes 1 10 14 form parl of these financial stalerrEnls. 13
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ACCOUNTING POLICIES The RNLI Lifesaving Endowment was registered as a Charitable Incorporated Organisalion on 20 June 2019 with the Charity Commission of England and Wales 11184013}. The address of the registered office is West Quay Road, Poole, Dorsel, BH15 1 HZ. Basis of accountlng The financi81 statements have been prepared under the historical cost convention. These accounts are prepared in accordance with the Charities SORP IFRS 1021 'A¢counling and Reporting by Charities.. Slalemenl of RecommenLled Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland IFRS 1021 leffeclive 1st January 20191,, Financial Reporting Standard 102 The Financial Repoiling 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 enlily under FRS 102. bl Critlcal accounting judgements and key sources of estlmation uncertainty Preparation of the financial slalements requires the Trustees to make judgements and estimates. The Trustees consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty. Asse85ment of going concern The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial slalements. 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 uncerlainlies related lo events or conditions that may cast significant doubt 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 lo meet ils liabilities as they fall due. d) Income Incoming resources are included in the SOFA when the RNLI Lifesaving Endowment is enlilled to the income, the receipt is probable. and the amount can be quantified with reasonable accuracy. If these conditions are not mel the income is deferred. Donations made by the RNLI are recognised as income in the charity either when paid or al the date when the RNLI has 8 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 YEAR ENDED 31 DECEMBER 2022 Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related lo the category. Irrecoverable 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 establishment of the RNLI Lifesaving Endowment and investment fees. Expenditure on charitable activities comprises donations and allocated support costs. Donations are recognised in the financial statements following approval by the Tru51ee$. Investments Investments held as fixed assets and for which there is a quoted market value are valued at the bid- price ruling al the balance sheet dale. Investment gains and losses arising during the year are included in the SOFA. gl Fund accountlng The RNLI Lifesaving Endowment funds fall into the following categories.. Expendable endowments are capital sums that are donated under the restrlction that they are invested and that only the income arising is available for expenditure in accordance with the donors, directions. These capitsl sums may be spent al the discretion of the Trustees of the RNLI Lifesaving Endowment, where necessary, and in accordance with the donors. directions. Reslricled funds 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) Presentation currency The functional currency of the RNLI Lifesaving Endowment is in pounds sterling because that is the currency of the primary economic environment in which the charity operates. Exchange rate gains and losseg Transactions in foreign currencies are recorded using the rale of exchange ruling at the dale of the Iransaclion. Monetary assets are translated at the rate of exchange ruling al the balan sheet dale. Gains and losses on exchange are included in the SOFA. Taxation The RNLI Lifesaving Endowment is exempt 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 extent that these are applied lo ils charitable objects. No tax charges have arisen in the Fund. Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised at transaction value and subsequently measured al their settlement value. 15
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 DONATIONS AND LEGACIES 2022 18 month period to 3111212021 £'ooo £'ooo Donation from RNLI Donations 326 16 342 RESOURCES EXPENDED Direct costs Other allocated costs Total 18 month 2022 period to 3111212021 £'ooo 16 936 £'ooo £'ooo £'ooo 10 467 Raising funds Charitable activities Support costs 10 459 181 477 952 477 952 952 Total 2021 Support costs are allocated to relevant categories based on their percentage share of overall direct costs. Charitable activities comprise one donation made to the RNLI12021.' donations). SUPPORT COSTS Total 2022 Total 18 month period to 3111212021 £'ooo £'ooo Audit fees Legal fees Audit fees of £8K linclusive of VATI are payable to the external auditor. TRUSTEES, EXPENSES AND REMUNERATION No Trustees, or any persons connected with them, received remuneration. There were no trustees, expenses paid during the period. STAFF COSTS There were no employees during the period. 16
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 INVESTMENTS HELD FOR MORE THAN ONE YEAR All investments are basic financial instruments and are measured al fair values Unrestricted funds £'ooo Restricted funds £'ooo Endowed funds £'ooo Total 2022 Total 2021 £'ooo £'ooo Investment assets uilies Pro erl Infraslruclure Cash and de osits Market value at 31 December 2022 27,167 7,357 10,442 935 45,901 27,167 7,357 10.442 935 45.901 29,802 8,376 10,775 48.953 Ib) Analysis of movement Maiket value at 1 January 2022 Additions Dis osals Gainslllossesl on investment Market value at 31 December 2022 Ori inal cost 456 71 48,426 48.953 41,670 298 754 47 118 8,755 8,869 {2,4111 9,100 9.741 12,4111 28,711 28.328 6,900 45,901 45,901 48,953 Investment Income uities Pro Infrastructure Cash and de Total 298 47 345 550 osits 298 47 345 550 DEBTORS Total 2022 £'ooo Total 2021 £'ooo RNLI debtor 20 16 20 16 17
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 CREDITORS Total 2022 £'ooo Total 2021 £'ooo Accruals RNLI creditor 489 489 10. FUNDS ANALYSIS al Balance Sheet- analysis of funds 2022 summary Unrestricted funds 2022 £'ooo Restricted funds 2022 £'ooo Endowed funds 2022 £'ooo 45,901 20 45,921 Total 2022 £'ooo Investments Nel current assets Total 45,901 36 16 16 bl Endowed funds- analysis of major funds Name fund of Purpose fund of Opening balance 2022 £'ooo 41,896 Investment losses 2022 £'ooo 12,0861 Income Expenditure Closing balance 2022 £'ooo 39,729 2022 £'ooo 2022 £'ooo 1871 RNLI Lifesaving Endowment The advancement of saving lives al sea The advancement of saving lives al sea in Ireland Elizabeth O'Kelly Fund 6,530 13251 {71 6.192 Total endowed funds 48,426 12,4111 1941 45.921 cl Restricted funds - analysis of major funds Name of fund Purpose of fund Opening balance 2022 £'ooo Income Expenditure Closing balance 2022 £'ooo 2022 £'ooo 47 2022 £'ooo 1551 Elizabeth O'Kelly Fund Total endowed funds The advancement of saving lives al sea in Ireland 47 1551 18
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 11. FINANCIAL COMMITMENTS There were no capital commitments al the end of the period There are no other liabilities, contingent or otherwise, that are not provided in these accounts. RELATED PARTY TRANSACTIONS 12. The RNLI Lifesaving Endowment donated £459K12021.. £930KI to the RNLI during the period. No additional donation was made in 2022 by the RNLI (2021.. £326KI. 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 foT which no charge was made. 13. ULTIMATE CONTROLLING UNDERTAKING RNLI Lifesaving Endowment is consolidated into the financial statements of the Royal National Lifeboat Inslilulion. The ultimate controlling undertaking is the Royal National Lifeboat Instilulion, incorporated under Royal Charler in the United Kingdom. Copies of the consolidated financial slalements of the Royal National Lifeboat Inslitulion, including RNLI Lifesaving Endowment, can be obtained from Wesl Quay Road, Poole, Dorsel, BH15 1 HZ. 19
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEf41BER 2022 14. 2021 COMPARATIVES- FUNDS a. Statement of Financial Activities- previous year comparatives Note Unrestricted funds £'ooo Restricted funds £'ooo Endowed funds £'ooo Total 2021 £'ooo Income and endowments from: Donations and le Investments Total income and endowments acies 16 479 495 326 342 550 892 7¢ 71 71 326 Ex Ènditure on: Raisin funds Charitable activities Total expendlture 16 936 952 489 505 76 76 371 371 Nel Ilossesl on investments 7b 6,900 6,900 Net income 10 6.855 6.840 Reconciliation of funds". Funds al 1 Jul 2020 Movement in funds Funds at 31 December 2021 56 10 46 13 6,855 48,426 6,840 48,480 b. Consolidated balance sheet- analysis of funds 2021 summary Unrestricted funds 2021 £'ooo 456 410 46 Restricted funds 2021 £'ooo 71 63 Endowed funds 2021 £'ooo 48,426 Total 2021 £'ooo Investments Creditors Total 48.953 473 20
RNLI LIFESAVING ENDOWMENT NOTES TO THE FINANCIAL STATElblENTS (CONTINUED) FOR THE 18 MONTH PERIOD ENDED 31 DECEMBER 2022 14. 2021 COMPARATIVES- FUNDS ICONTINUEDI Resources expended Dlrect costs Other allocated osts £'ooo Total 2021 £'ooo £'ooo 16 936 Raising funds Charitable activities Support costs 16 929 171 952 952 Support costs are allocated to relevant categories based on their percentage share of overall direct costs. d. Endowed funds - analysis of major funds Name fund of Purpose fund of Opening balance 2021 £'ooo 36,168 Investment gains 2021 £'ooo 6,003 Income Expendlture Closing balance 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 al sea in Ireland Elizabeth O'Kelly Fund 5,403 897 274 {441 6,530 Total endowed funds 41,571 6,900 326 {3711 48.426 e. Restricted funds analysis of major funds Name offund Purpose of fund Opening balance 2021 £'ooo 13 Income Expenditure Closing balance 2021 £'ooo 2021 £'ooo 71 2021 £'ooo 1761 Elvzabelh O'Kelly Fund The advancement of saving lives al sea in Ireland Total endowed funds 13 71 {761 21