RNLI/Mike

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24Photo: RNLI/Julian Calverley
RNLI notes to the accountsFOR THE YEAR ENDED 31 DECEMBER 20121 Accounting policiesa) Basis of accountingThe accounts have been prepared under the historical costconvention, except that investments are stated at market value.The accounts have been prepared in accordance withapplicable accounting standards, the Charities Act 2011, and theStatement of Recommended Practice (SORP), Accounting andReporting by Charities (revised 2005) (second edition 2008).b) Basis of consolidationAll subsidiary companies have been consolidated on a line-bylinebasis.c) DepreciationTangible fixed assets costing more than £10,000 are capitalisedand included at cost.Fixed assets are depreciated over their current anticipatedlives, which are assessed as follows:Goodwill and : straight line over 20 yearsintellectual propertyLifeboat stationsand shoreworksOther freehold/leasehold buildingsLifeboatsLaunching equipmentOffice furnitureand depot plantComputer andelectronic equipmentMotor vehicles: straight line over 50 years: straight line over50 years/period of lease: 13–25% reducingbalance per annum: 13% reducing balanceper annum: straight line over 5–10 years: straight line over 4 years: straight line over 4 years.d) Pension schemeThe RNLI operates a defined benefit pension scheme coveringits employees in the UK and the RoI. The scheme was closedto new entrants from 1 January 2007 and closed to futurebenefit accrual on 30 September 2012, although benefits foractive members accrued up to 30 September 2012 continueto be subject to any increases in pensionable pay. A definedcontribution pension scheme was established for new staffjoining from 1 January 2007 and this was also offered as analternative to members of the defined benefit pension schemeon its closure. The defined benefit scheme assets are heldin a separate Trustee-administered fund. The cost chargedin the Statement of Financial Activities (SoFA) representscurrent service costs and gains and losses on settlements andcurtailments calculated in accordance with FRS17. Actuarial gainsand losses are recognised immediately. Further details are shownin note 15. Contributions in respect of the defined contributionscheme are recognised as expenditure as they become payable.e) Incoming resourcesAll incoming resources are included in the SoFA when theCharity is legally entitled to the income and the amount canbe quantified with reasonable accuracy. Pecuniary legacies arerecognised as receivable once probate has been granted andnotification has been received. Residuary legacies are recognisedas receivable once probate has been granted, on an estimatedbasis as follows: cash elements are recognised at monetary value,with property and other assets, including investments, valuedat probate or estimated market value. Values are reviewed andadjusted at the accounting date as required. The RNLI maintainsa legacy pipeline system which, in addition to accrued legacies,includes further estimated legacies of which the RNLI is awarebut which do not meet the above criteria and which, therefore,have not been included within these accounts. Donations in kindare valued at the value in use of the assets to the RNLI.f) Resources expendedAll expenditure is accounted for on an accruals basis and hasbeen classified under headings that aggregate all costs relatedto the category. Support costs representing expenditure ontraining, estates and administration, financial management,human resources administration and information systems andinfrastructure have been allocated to resources expended,excluding merchandising and investment management, onthe basis of cost. Governance costs are those costs associatedwith the governance arrangements rather than the day-to-daymanagement of the charity.g) Reserves policyThe RNLI’s reserves fall into the following categories:Endowment reserves are capital sums, which are donated underthe restrictions that they are invested and that only the incomearising is available for expenditure in accordance with thedonors’ directions.Restricted reserves are reserves that are only available forexpenditure in accordance with the donors’ directions. Wherethose reserves have been expended on fixed assets, the reservesfinancing the book value of those assets will continue to beaccounted as restricted reserves, reflecting the source of fundsand the RNLI’s continued obligations in respect of the use ofthose assets. Other than fixed assets there are over 700 of thesereserves, all represented by investments, which are restricted toexpenditure on particular items of equipment and on particulartypes of service such as crew training or at particular stations.Accrued legacy reserves represent the restricted legacy valueaccrued on an estimated basis, in accordance with the policy onincoming resources detailed in this note.25
Page 2 and 3: Photo: RNLI/Mike Lavis
Page 4 and 5: Message from the Chief executiveTha
Page 6 and 7: ABOUT THE RNLIFOR THE YEAR ENDED 31
Page 9: 7Photo: RNLI/JP Trenque
Page 13 and 14: BOATS, EQUIPMENT AND ESTATE MANAGEM
Page 15 and 16: We have also developed practical in
Page 17 and 18: £166.5M £140.7M £35.5MIncomeINCO
Page 19 and 20: These risks are analysed into key c
Page 21 and 22: Independent auditor’s reportTO TH
Page 23 and 24: RNLI consolidated balance sheetAS A
Page 25: RNLI consolidated cash flow stateme
Page 29 and 30: 2 SUBSIDIARY COMPANIESThe RNLI has
Page 31 and 32: 4 TRUSTEE, COUNCIL AND COMMITTEE CO
Page 33 and 34: 6 Fixed assets (continued)b) Intang
Page 35 and 36: 9 Debtors Total2012£MLegacies rece
Page 37 and 38: 15 PENSION SCHEMESThe RNLI operates
Page 39 and 40: 15 pension schemes (continued)c) Ch
Page 41 and 42: 39Photo: RNLI/Dave Cocks
Page 43 and 44: Neil LernerRichard LeworthyNorma Ma

RNLI/Mike

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