RNLI ANNUAL REPORT AND ACCOUNTS 2011

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GovernanceThe Royal National Lifeboat Institution (RNLI) was foundedin 1824, and incorporated under Royal Charter in 1860, withSupplemental Charters granted in 1932, 1986, 2002 and 2011.The RNLI is established as a charity in England and Wales, number209603 and Scotland, number SC037736. It is registered as Charitynumber CHY 2678 in the Republic of Ireland. The address of theregistered office is West Quay Road, Poole, Dorset, BH15 1HZ.Following the updating and modernisation of our RoyalCharter and Bye-Laws in 2010, changes were approved by theGovernors at the RNLI’s Annual General Meeting in May. HerMajesty The Queen approved the changes to the Royal Charteron 1 November 2011, with the new supplemental Royal Chartercoming into effect from that date. There were no major changesto the governing principles of the charity.The RNLI has five wholly-owned subsidiary companies:RNLI (Enterprises) Limited, RNLI (Sales) Limited, RNLI (Trading)Limited, RNLI College Limited (incorporated during the year toprovide training to the RNLI and approved third parties) and SARComposites Limited, a subsidiary of RNLI (Trading) Limited.In addition, there are a number of advisory committees,enabling experienced specialists to contribute to key aspects ofthe RNLI’s affairs, and an Audit and Risk Committee. The Auditand Risk Committee meets twice a year and reviews the workof the external and internal auditors, the Annual Report andAccounts and other financial information prior to publication.The RNLI also employs specialist advisers as shown on page 35.On appointment, new Trustees are given an inductionprogramme and a reference manual to familiarise themselveswith the work of the RNLI and their role. Periodic trainingsessions are also held for the Trustee body as a whole. TheChief Executive is responsible to the Trustees for the day-todayrunning of the RNLI and the execution of the strategy andpolicies decided by the Trustee Board.Names of RNLI Trustees who served at any time during 2011and/or were Trustees of the charity as at the date of this report,together with the names of the Chief Executive, other membersof the Executive Team, and other relevant organisations andpersons are given on pages 34 and 35.THE TRUSTEES AND MANAGEMENTThe RNLI is controlled by a Trustee Board.The Trustees are a body of volunteers with distinguishedcareers in a wide variety of fields. They come from all parts ofthe UK and RoI and many have had a lifelong interest in the sea.Trustees are appointed from within and by the Council, which inturn provides broad advice and support to the Trustees. Membersof Council may be proposed to the Membership NominationCommittee by the Trustees or a Governor. This Committee,which comprises the Chairman, the Vice-Chairman, the DeputyChairmen and the Chairman of the Resources Committee,reviews the names proposed and submits its recommendationsto the Annual General Meeting for election by the Governors.Trustee Board Members serve a 3-year term, but may bere-elected for succeeding terms.RISK MANAGEMENTBy the RNLI’s very purpose, the crews, support staff andoperational assets are exposed to substantial risk. The Trusteeshave taken all appropriate steps to mitigate and manage theseoperational risks, principally through crew training, appropriateoperational procedures, stringent design and maintenance of thelifeboats and equipment, and insurance of third-party risks.The further development of competence-based training (CoBT)for lifeboat crew members, shore crew and lifeguards and the newdesigns of lifeboats are major elements of this continuing process.The RNLI actively seeks to manage the organisation’s keystrategic risks, which are formally reassessed by the ExecutiveTeam and Trustees biannually. The current key strategic risksrelate to loss of life, the maintenance of the RNLI’s reputationand our ability to raise funds.Shore crew recovering the Merseyclass lifeboat Leonard Kent14
These risks are analysed into key components in a riskregister where responsibility for the management of eachcomponent is assigned to a senior manager. The Audit and RiskCommittee monitors the resulting risk profile and reports to theTrustee Board.Although responsibility for risk management lies withRNLI management, the Internal Auditor facilitates theassessment process.FINANCIAL POSITIONThe Trustees consider that there is a reasonable expectationthat the RNLI has sufficient resources to continue in operationalexistence for the foreseeable future and, for this reason, theycontinue to adopt the going-concern basis in preparingthe accounts.KEY FACTORS INFLUENCING PERFORMANCEAchievement of the RNLI’s objectives is subject to a number offactors both within and outside of the organisation’s control.Factors include the continuity and availability of public support,both in funding and in volunteering, economic stability (includingthe marine industry, the costs of maritime infrastructure and theprice of fuel), the volatility of investment markets, continuity ofnational, regional and local government policy, and the stabilityof the sociological and geophysical coastal environment.STATEMENT OF TRUSTEES’ RESPONSIBILITIESThe Trustees are responsible for preparing the Trustees’ Reportand the financial statements in accordance with applicable lawand regulations.Charity law requires the Trustees to prepare financialstatements for each financial year in accordance with UnitedKingdom Generally Accepted Accounting Practice (UnitedKingdom Accounting Standards and applicable law).Under charity law the Trustees must not approve thefinancial statements unless they are satisfied that they give atrue and fair view of the state of affairs of the charity and thegroup, and of its, and the group’s, surplus or deficit for thatperiod. In preparing these financial statements, the Trustees arerequired to:• select suitable accounting policies and then applythem consistently• make judgements and estimates that are reasonable and prudent• state whether applicable accounting standards have beenfollowed, subject to any material departures disclosed andexplained in the financial statements• prepare the financial statements on the going-concern basisunless it is inappropriate to presume that the charity willcontinue to operate.The Trustees are responsible for keeping proper accountingrecords sufficient to show and explain the charity’s and thegroup’s transactions, and disclose with reasonable accuracy atany time the financial position of the charity and the group andenable them to ensure that the financial statements comply withthe Charities Act 2011. They are also responsible for safeguardingthe assets of the charity and the group and hence for takingreasonable steps for the prevention and detection of fraud andother irregularities. Through specified financial procedures theyaim to ensure the security of RNLI property, safe receipt of allincome and appropriate review and controls over expenditure andexpenses such that they are relevant to the RNLI’s objectives, fitfor purpose, properly incurred and properly authorised.15
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Page 5: Beach safety advice has also been d
Page 9 and 10: The RNLI is always ready tolaunch t
Page 11: Station ALBs (%)1008060Total statio
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Page 21 and 22: RNLI balance sheet*AS AT 31 DECEMBE
Page 23 and 24: RNLI notes to the accountsFOR THE Y
Page 25 and 26: The internal supplies of RNLI (Trad
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Page 36 and 37: RNLI officers and contactsAS AT 4 A
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RNLI ANNUAL REPORT AND ACCOUNTS 2011

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