RNIB Group annual report and financial statements 2013/14

Transcription

1 RNIB Group annual report and financial statements 2013/14

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3 RNIB Group annual report and financial statements 2013/14 Royal National Institute of Blind People (RNIB) Trustees report and the audited consolidated financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) Accounting and Reporting by Charities (2005) as revised in May 2008, and the Charities Act This report covers the work of the RNIB group of charities throughout the UK, which includes Action for Blind People, Cardiff Institute for the Blind (CIB) and RNIB Specialist Learning Trust. Contents Chair and Chief Executive introduction 4 Structure and objectives 6 Trustees annual report: our work in 2013/14 15 Independent auditors report to the Trustees of RNIB 52 Consolidated statement of financial activities for the year ended 31 March Balance sheets as at 31 March Group cash flow statement for the year ended 31 March Notes to the financial statements for the year ended 31 March Who s who at RNIB 123 RNIB Group annual report and financial statements 2013/14 3

4 Lesley-Anne Alexander CBE Chief Executive Kevin Carey Chair Chair and Chief Executive introduction The shared ambition of RNIB, Action for Blind People, Cardiff Institute for the Blind and RNIB Specialist Learning Trust is to make every day better for everyone affected by sight loss. Our practical and emotional support helps people losing their sight, and blind or partially sighted people to face the future with confidence. Continuing cuts to services and income are having a huge impact on the lives of many blind and partially sighted people and it is more important than ever that we reach as many people as possible, enabling independence and inclusion. Of course the tough economic climate is also having an impact on our resources but we continue to work hard to make a real difference for everyone affected by sight loss and we have had some fantastic achievements this year that we are immensely proud of. When someone has just been diagnosed as losing their sight we want to be there to help them come to terms with this potentially devastating news and help them face the future with confidence. This year we have continued to increase the quantity and quality of sight loss advisers available to support people in eye clinics at the point of diagnosis. We also launched our I am here campaign which raised awareness of the importance of sight loss support services in eye clinics and the potential threats to existing services from continuing local authorities and NHS cuts. We provide blind and partially sighted people with practical support to lead independent lives. The demand on our Helpline continues to grow, this year we responded to over 500,000 individual enquiries, and our welfare rights service continued to identify previously unclaimed entitlements for blind and partially sighted people, this year amounting to an incredible 14.5million. 4 rnib.org.uk

5 We campaign for the long term changes to society that will improve the quality of life of almost two million people living with sight loss in the UK today. As a result of our work this year there have been improvements to a number of regional and national transport services including to bus services. Some bus companies have now realised the difficulty that request stops pose to people who cannot see the bus coming and have altered their policies to ensure that buses stop at every bus stop. We continued to bring people closer to the new technology solutions available to support independence through our Switch on to technology events held across the UK and through the vital work of our Technology Support Squad volunteers. We work to raise public awareness of eye health and to improve eyecare services in order to reduce the level of avoidable sight loss. We had great success this year advocating new sight-saving treatments with an amazing six being approved by National Institute for Health and Care Excellence (NICE) and five by the Scottish Medical Consortium (SMC). But we don t stop there, we continue to press local health services to provide these treatments and support people to receive the treatments they require. This has been the last year of our current 2009/14 strategy and inside this report you will find out more about the progress we have made toward achieving our goals. We have also finalised the development of our 2014/19 strategy which for the first time is a strategy for the whole group of charities. In developing the strategy we consulted with blind and partially sighted people, including our members, as well as professionals working in the field of eye health and sight loss. We are tremendously excited to launch our new strategy which cements our commitment to be there for people when they are told they are losing their sight. You can find out more about our 2014/19 strategy later in this report. All of our achievements this year, over the course of our previous strategy, and in the coming years of our new strategy are only possible thanks to our supporters. Thank you to our generous donors and the people who leave us a legacy in their Will. Thank you to the local fundraising groups tirelessly raising money for us. Thank you to the volunteers whose time helps us to provide vital services. Thank you to the people who support our campaigns and help us shout louder for the rights of blind and partially sighted people. Each and every one of you, along with the dedicated staff of RNIB, Action for Blind People, Cardiff Institute for the Blind and RNIB Specialist Learning Trust, is making a huge difference to the lives of people with sight loss in the UK. Lesley-Anne Alexander CBE Chief Executive Kevin Carey Chair RNIB Group annual report and financial statements 2013/14 5

6 Structure and objectives Our legal structure Royal National Institute of Blind People (RNIB) is a registered charity, number , in England and Wales; number SCO39316 in Scotland and number 1109 in the Isle of Man (foreign company number 5724F). Established in 1868, RNIB was incorporated under Royal Charter in 1949, with a Supplemental Charter in 1993 (revised in 2007 and 2014). On 1 July 2014, we restructured the RNIB group of charities in order to support the effective delivery of the new strategy. The effect of this has been to set up a new entity, RNIB Charity (company number , charity number ) on 1 April RNIB Charity and Action for Blind People, both subsidiaries of RNIB, will provide a focus for customers in terms of service delivery. We have also amalgamated our support functions into RNIB to ensure efficiencies for all charities within the group. RNIB is governed by a Trustee Board. On 31 March 2014 this consisted of 18 people and currently consists of 10 people. The Trustee Board meets a minimum of four times a year and takes all important strategic, policy and financial decisions, and has overall responsibility for RNIB Group activities. There are no restrictions on the way in which the Charity can operate. Until 30 June 2014 a number of Trustees were elected to serve on the Board; five Trustees were elected by the English region representatives of the UK Members Forum and the RNIB Cymru, Northern Ireland and Scotland Member Forums elected a Country Chair who automatically became a Trustee on the Board. RNIB s Honorary Officers were elected by an electoral college comprising members of the Board and the UK Members Forum. Additionally a proportion of our Trustees were appointed by the Board itself, following a process of open competition. Trustees served a three-year term of office, following which they could choose to retire or seek re-election/re-appointment. However, no Trustee could serve for more than three consecutive terms of three years of office, unless they became one of the Charity s Honorary Officers (RNIB Group Chair, Vice-Chairs or Honorary Treasurer) when they could serve for no more than three consecutive terms of three years in that capacity from the AGM at which they were appointed to that position. From 1 July 2014 six Trustees are nominated by RNIB Charity and two Trustees are nominated by Action for Blind People to serve on the Board. Two independent Trustees are appointed by the Board itself. During an initial transitional period, the Board will elect its Honorary Officers (Chair, Vice-Chair and Honorary Treasurer) from within the Board itself. Thereafter the Honorary Officers will be elected by an electoral college comprising the Board and the UK Members Forum, with the first elected Honorary Officers taking up their appointments on 1 January rnib.org.uk

7 During the transitional period, Trustees will hold office for a period of up to three years, as specified in the transitional arrangements approved by the Privy Council as part of the re-structure. Thereafter, Trustees will serve for a three year term of office, but may serve for no more than three consecutive terms of three years, other than in the case of an Honorary Officer, in exceptional circumstances approved by the Board. An induction pack is provided to all new Trustees and they are invited to attend an intensive induction day during which they are provided with information on the key services provided by RNIB and the main challenges and policy issues facing the Charity. Each Trustee receives an annual appraisal during which any individual training needs are identified. Where collective training needs are established, these are delivered to the Board as a whole. How we are managed Our management and governance structures changed on 1 July However, during 2013/14, the Board delivered the strategy through a number of programme boards. It was also supported by a number of committees and member forums. The key committees that support the Board and a description of their areas of responsibility are as follows: RNIB Group Audit Committee: overseeing effective auditing, financial reporting, internal controls and risk management within RNIB. Executive Committee: (until 30 June 2014) pre-digesting complex matters for the RNIB Group Board; advises the Board with a view to ensuring the alignment of budget and service priorities, including consideration of the budget and business plan. Acting as programme board for the Enabler Programme that underpins the RNIB Group Strategy 2009/14. Fundraising Committee: (from 1 July 2014) supporting the delivery of the strategic priorities and outcomes in the RNIB Group Strategy 2014/19 by developing fundraising strategies and advising on key issues relating to their implementation. Governance Committee (and Nominations Committee): taking an overview of the governance arrangements of RNIB and supporting the Board and Strategic Management Team (SMT) in ensuring that effective governance structures are in place. Appointing a panel to review nominations and act as interview panel for Trustee applicants. International Committee: (until 30 June 2014) delivering the international element of RNIB Group Strategy 2009/14 and acting as the planning, co-ordinating and monitoring forum for RNIB s international affairs. Investments Committee: overseeing the effective investment of funds for the Charity on behalf of the Board. Acting in an advisory role on the effective investment of funds to the Trustees of the RNIB Retirement Benefits Scheme. Remuneration Committee: reviewing the salaries for the Chief Executive and Group Directors and other relevant matters, such as the general position relating to remuneration at RNIB. Trustees Review Payments Committee: reviewing whether it is in the interests of RNIB to pay or contract with Trustees or connected persons or any other individual involved in RNIB Governance, for the provision of services to the organisation, rather than any other company or individual. RNIB Group annual report and financial statements 2013/14 7

8 RNIB Cymru Committee: (until 30 June 2014) taking an overview of the arrangements and range of services for blind and partially sighted people in Cymru and supporting the Board and SMT in ensuring that appropriate arrangements are in place within the context of RNIB s Strategy. RNIB Northern Ireland Committee: (until 30 June 2014) taking an overview of the arrangements and range of services for blind and partially sighted people in Northern Ireland and supports the Board and SMT in ensuring that appropriate arrangements are in place within the context of RNIB s Strategy. RNIB Scotland Committee: (until 30 June 2014) taking an overview of the arrangements and range of services for blind and partially sighted people in Scotland and supports the Board and SMT in ensuring that appropriate arrangements are in place within the context of RNIB s Strategy. The day-to-day management of RNIB is delegated to Strategic Management Team (SMT). Until 30 June 2014 this comprised the Chief Executive and the Group Directors of: Supporting Independent Living Inclusive Society Solutions Fundraising Resources and the Chief Executive of Action for Blind People. Following the restructure on 1 July 2014 SMT comprised the Chief Executive and the: Group Director, Fundraising Group Director, Resources Managing Director, Engagement of RNIB Charity Managing Director, Places of RNIB Charity Managing Director, Solutions of RNIB Charity and the Chief Executive of Action for Blind People. The Chief Executive of RNIB, with the support of the rest of SMT, reports to the Board of Trustees for approval of all major decisions. Full details of SMT can be found in the section Who s who at RNIB. RNIB Membership At March 2014 we had 10,980 (2013: 10,448) members forming a strong community and voice for blind and partially sighted people. The UK Members Forum supports the Board and influences policy via the on the ground experiences of our blind and partially sighted members. Members also influence our work through regional and country forums. Every member is kept up to date with the latest news from RNIB via our awardwinning members magazine Vision. The supplemental charter and bye-laws require that 75 per cent of the Board of Trustees are blind or partially sighted and it is our intention that in time all members of the UK Members Forum are blind or partially sighted. 8 rnib.org.uk

9 Our registered office We are registered at 105 Judd Street, London WC1H 9NE, telephone Statement of Trustees responsibilities The Trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales, and Scotland requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and the Group and of the incoming resources and application of resources of the Group for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Charity s constitution. They are also responsible for safeguarding the assets of the Charity and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. RNIB Group s new strategy 2014/19 We have agreed a new strategy for 2014/19. Our strategy supports the UK Vision Strategy and the implementation of Seeing it my way. It is underpinned by evidence drawn from research and consultation. We listened to our members, blind and partially sighted people and those at risk of sight loss, staff, volunteers, and partners. We talked directly to over 1,800 people. RNIB Group annual report and financial statements 2013/14 9

10 The consultation and research confirmed that the priorities we identified in our 2009/14 strategy - stopping people losing their sight unnecessarily; supporting people to lead independent lives; and making society a more inclusive place for blind and partially sighted people - remained right. But there was recognition that, for the next strategy period, we needed to increase reach and impact and have an even greater emphasis on supporting people losing their sight. The strategy sets out: An Ambition which describes our long-term aspiration: Making every day better for everyone affected by sight loss: by being there when people need us, supporting independent living, creating an inclusive society and preventing sight loss. A set of Group values which describe our ethos: Led by blind and partially sighted people: Blind and partially sighted people are at our heart and influence everything we do. Collaborative: We work together to make the biggest difference. Creative: We understand challenges and find ways to overcome them and move forward. Inclusive: We include and value people with diverse experience, abilities and backgrounds. Open: We are honest, candid and transparent, challenging ourselves and others. Four strategic priorities and nine outcomes: Strategic Priority 1: Being there - people losing their sight can rebuild their lives. Right from the first diagnosis everyone affected by sight loss and their families and friends, need advice and practical and emotional support. We will focus on making sure more people are reached early. Outcome 1. Newly diagnosed people with significant deterioration in their sight have increased emotional well-being, and they, their family and friends have practical support when they need it to rebuild their lives. Strategic Priority 2: Independence - blind and partially sighted people can make the most of their lives. Blind and partially sighted people should be able to make informed choices about their lives. There should be access to the support, services, products and technologies that enable a good quality of life, along with opportunities to develop the skills for confident living. We will focus on promoting ongoing independence. Strategic Priority 3: Inclusion - society includes blind and partially sighted people as equal citizens and consumers. Barriers to using mainstream goods and services result in isolation and exclusion. We will focus on raising awareness within communities and society to secure changes in behaviour that result in improved access for blind and partially sighted people. Strategic Outcomes for Strategic Priority 2, Independence and Strategic Priority 3, Inclusion 10 rnib.org.uk

11 Outcome 2: Blind and partially sighted people have the skills, tools, confidence and support they need to enhance their choice, control, enjoyment and independence in daily living and make the most of their sight. Outcome 3: Blind and partially sighted people, family and carers maximise their income from benefits. Outcome 4: Blind and partially sighted people are able to get out and about confidently and safely on their own terms. Outcome 5: Blind and partially sighted people are able to make more use of household, digital, communication and entertainment services, products and technologies. Outcome 6: Blind and partially sighted learners are able to achieve their potential at school, college and university. Outcome 7: Blind and partially sighted people are able to develop skills to gain and retain work and to volunteer. Outcome 8: Information about key services, including health and transactions with key service providers are accessible to blind and partially sighted people. Strategic Priority 4: Prevention - Fewer people lose their sight Raising awareness of sight loss is critical if more people are to take responsibility for eye health. There should also be better eye care services and access to sight saving treatments. We will focus on preventing sight loss amongst at risk groups and influencing at local and national levels to make sure eye health is a public health and research priority across the UK. Outcome 9: Fewer people experience significant sight loss. The strategy also sets out six change areas: customer engagement; volunteering; involving blind and partially sighted people; partnerships; accessibility; and digital. To do this, by 2019, we will: Make sure there is an Eye Clinic Liaison service covering every eye clinic in the UK to provide direct practical and emotional support to everyone who is newly diagnosed with significant permanent sight loss, and referral on to other services. We will influence the NHS and others to fund these services, provide training and support to local organisations to provide local Eye Clinic Liaison Officer (ECLO) services, and pump prime when necessary. Provide the most highly regarded, comprehensive advice and support service for anyone affected by sight loss in the UK, including eye health information, personalised assessment, emotional support, helpline, welfare rights and advocacy. It will be crosschannel, to enable people to be in contact with us in the way that best suits them. Reach many more people with our range of face to face skills development and confidence building courses, support for using goods and services for the home and digital technologies, and supporting blind and partially sighted people to develop skills to gain and retain work. We will do this by working with volunteers and providing much more through peer support and mentoring. RNIB Group annual report and financial statements 2013/14 11

12 A renewed focus on children including providing confidence building support and services; and developing our educational services for children and young people with complex needs so they provide a sustainable model for how education to children and young people with complex needs and sight loss can and should be provided. Make more books, magazines, newspapers, images, music and other content available to people simultaneously with mainstream publication and in formats they can use. Be a retailer of choice for the sale of products that support blind and partially sighted people to live independently. Offer solutions to businesses to enable them to make their publications, goods, services, buildings and environments useable and accessible to people with sight loss. Influence and campaign both locally and nationally with government, NHS, local authorities, public service providers, manufacturers, content providers, retailers, educators, employers and residential care providers to make policies, goods, services, technologies and environments inclusive and accessible to and for blind and partially sighted people. To deliver this we will change what we do by: Putting customers even more at our heart, establishing long-term relationships with them, and using what we know about our customers to help us design services that meet their needs. Significantly increasing the opportunities for volunteers across everything we do. Involving many more blind and partially sighted people in our work, including through peer support, as members and campaigners and in helping us design what we do. Building partnerships particularly at a local level, including supporting and helping local organisations to develop rather than doing everything ourselves. Being an exemplar for accessibility so that blind and partially sighted people can engage with us easily and we can encourage other organisations to do the same. Modernising our digital approaches so we can deliver advice and support to anyone with sight loss consistently in ways and through channels that suit them. In 2014/15, the first year of our new strategy, we aim to make progress as follows against these strategic outcomes. Being there We will provide more newly diagnosed people with significant deterioration in their sight, with the support they need to increase their sense of emotional wellbeing. We will reach more people, newly diagnosed with sight loss, and provide them with the practical support needed to help rebuild their lives. 12 rnib.org.uk

13 Independence We will continue to extend our advice and support to ensure more people are able to maintain control over their own lives We will maintain the economic independence of more blind and partially sighted people, their family and carers by ensuring blind and partially sighted people receive the benefits they are entitled to. We will increase the independence of more blind and partially sighted learners by enabling them to achieve their potential at school, college and university. We will provide more people who are blind or partially sighted with the knowledge and skills needed to either move closer to the labour market, or into work. Inclusion We will increase the opportunities for blind and partially sighted people to live more independently and get out and about confidently and safely. We will enable more blind and partially sighted people to make more use of household, communication and entertainment services and products. Prevention We will support people to cope with sight loss by increasing their knowledge and understanding of their eye condition. The remainder of our annual report reflects on the work we have done over the last 2009/14 strategy period and specifically on everything that has been achieved in 2013/14. Statement of public benefit The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission s general guidance on public benefit, Charities and Public Benefit. RNIB s charitable objects are enshrined within its Charter and as such the Trustees ensure that this Charter is carried out for the public benefit through our three strategic priorities. This is done through delivery of services that whilst aimed primarily at those who are blind or partially sighted, are where appropriate open to all who might benefit throughout the United Kingdom. Membership of RNIB is not a requirement to use our services. Where we provide specialist services or products for which we charge and these are supplied directly to blind and partially sighted people then we provide a significant subsidy for these from our own charitable funds. Where fees are paid through central or local government or commercial organisations then the pricing model covers the costs for the delivery of the service and long term maintenance and development. We also where necessary provide individuals with access to assistance in applying for funding. RNIB Group annual report and financial statements 2013/14 13

14 This report allows us to show how our charitable funds are distributed and spent, and the benefits and impact that has on those using the services and the wider impact on society for the reported year and in the future. Relationship with other charities We maintain close links and support the aims of other organisations such as local, national and international charities working with or for people with sight problems. We also work closely with other disability charities on issues of mutual concern. We deliver services in partnership with some societies for blind and partially sighted people, and some of our funding comes from charities and trusts which support our aims. Between April 2009 and February 2010 we formed associations with Action for Blind People (Action), Cardiff Institute for the Blind (CIB) and National Talking Newspapers and Magazines (NTNM) enabling us to share skills and expertise to reach more people with sight problems in a more cost effective way. We have carried out a full merger with NTNM on 30 June In September 2010 the Charity Commission approved a Scheme whereby RNIB became the sole corporate trustee of the Glynn Vivian Home of Rest for the Blind (Glynn Vivian). This charity operated a Care Home in Wales which had closed prior to us becoming the sole trustee. The Home has now been sold and the proceeds of the sale have been earmarked for services to blind and partially sighted people in Wales. In April 2013, RNIB Specialist Learning Trust was set up as an Academy Trust, which then took on responsibility for the Three Spires School in Coventry in September 2013, which provides education for primary aged pupils with special educational needs. 14 rnib.org.uk

15 Trustees annual report: our work in 2013/14 Contents Stopping people losing their sight unnecessarily 16 Supporting independent living 23 Creating an inclusive society 34 Financial review 41 Fundraising review 42 Our volunteers 43 Employing disabled people 43 Engagement with staff 43 Investment policy 44 Reserves policy 46 Risk management 47 Going concern 48 Health, safety and the environment 48 RNIB Group annual report and financial statements 2013/14 15

16 Stopping people losing their sight unnecessarily Over 50 per cent of sight loss in the UK is avoidable. This is why we have spent 3,562,000 this year making eyecare services more appropriate and accessible to patients and work to ensure sight-saving treatments are available to all. By making sure the commissioners of sight loss services and the people working in health care are aware of the interventions that can save people s sight, we believe we can reduce the levels of unnecessary sight loss in the UK. We want people to be better equipped to look after their own sight by being more aware of the causes and potential signs of sight loss, and when people are diagnosed with an eye condition we want to make sure they are able to access appropriate treatments, are able to understand their eye condition and make informed choices based on understanding potential outcomes. Prevention of sight loss 3,562,000 3 per cent of our expenditure was focussed on preventing avoidable sight loss 16 rnib.org.uk

17 Goal 1 Improving eye health We will improve the eye health of high risk populations by improving the delivery and uptake of primary and secondary care in three of five areas, by influencing commissioners and service providers. Throughout the year we continued to invest in understanding the barriers and enablers to primary and secondary eye care services for specific populations experiencing eye health inequalities. Our Community Engagement Projects (CEPs) were launched at the outset of our strategy period to pilot interventions to prevent avoidable sight loss among communities at increased risk of sight loss. Our CEPs have been delivered in five deprived areas of the UK: in Bradford, Wales, Glasgow, Hackney and Belfast. All areas were identified on a particular basis of need to improve engagement and uptake of primary and secondary eye health care. 17

18 Our impact Although the final evaluation will not be completed until later this year, a number of early findings suggest there has been some change as a result of preventive approaches focusing on deprived and BME populations. The Bradford CEP trialled a suite of interventions which aimed to increase people s attendance at appointments and developed a self-care pack: Living Well with Diabetes for patients to use. Early findings indicate that the interventions have started to have an impact. For example, a text reminder service was put into place for people attending Diabetic Retinopathy Screening (DRS) services. Over the course of the evaluation there has been an increase from 63 per cent to 82 per cent of people now attending these appointments. The Living Well with Diabetes folders have proved popular with local health professionals and commissioners. Airedale, Bradford City and Bradford District Clinical Commissioning Groups provided funding to extend the use of the folders to a further 30 GP practices and up to 15,000 patients of all ethnicities in Autumn The Hackney CEP trialled a glaucoma case finding service inviting people of black African and Caribbean descent to a local GP practice for a series of glaucoma checks. Qualitative research has found that the barrier to checking incidence of glaucoma is related to retail. As a result the CEP intervention involved inviting 3,041 patients for screening. The outcome of this resulted in 22 people attending glaucoma clinic where 12 people were either diagnosed with glaucoma or suspect glaucoma. The CEP projects have provided an evidence base which other areas of the UK are using and building into future service commissioning. For example, a BME Champions project has now launched in South Wales, building on learning from Scotland. Goal 2 Raising awareness of sight loss We will increase the awareness of eye health amongst the general public and our priority populations through public awareness campaigns and targeting eye health information for Black and Minority Ethnic (BME) groups. We began 2013 with the launch of our major Spot the signs campaign, which encouraged people aged 50 and over to take action to look after their sight. For National Eye Health Week 2013 we worked with other charities and eye health and sight loss professionals across the UK to promote the importance of eye health and the need for regular sight tests. 18 rnib.org.uk

19 Our Eye Health Information Service continued to give people with a life-changing eye condition, the support and information they need to come to terms with their sight loss. Our impact This year our Eye Health Information Service (EHIS) gave individual support to around 3,300 people, talking them through their eye condition and the potential implications on their future and helping them come to terms with their sight loss. Being diabetic my eyes were giving me trouble, from time to time the vision was getting blurred, sometimes I couldn t see at all. The doctor wanted me to go to hospital but nothing was explained. Your literature was very helpful. They wanted to do an operation on my eye. I wasn t absolutely certain and so decided to investigate (by calling RNIB) and now I feel I know more. Elizabeth, who contacted us in per cent of people felt more able to take control of their situation. The service had a powerful and positive impact on many of the people who contacted it: 99 per cent satisfaction rating of EHIS customers 64 per cent thought the information they received from us was better than they had received from elsewhere 53 per cent felt better informed about their eye condition 73 per cent felt more able to take control of their situation. As a nurse I d been looking after other people for so long. My left eye has almost gone in vision. I appreciated someone explaining my condition to me to put me at ease; opticians just did not care about what I was going through, been with them for 12 to 14 years, no one in the hospital clinic cares, GP had no clue, except to state have you received advice from anyone! Carol, who contacted us in RNIB Group annual report and financial statements 2013/14 19

20 We also now have text and audio versions of the information on the most common eye conditions available in Urdu, Hindi, Punjabi and Welsh on our website. There have been over 1,000 downloads of the information since they were launched. RNIB supports National Eye Health Week. This year s campaign had over 1,000 supporters participating in the campaign and analysis of the campaign found that in total 135 million people were reached through media coverage, including national radio and press. Our Spot the signs campaign ran from January to June 2013 encouraging people aged 50 and over to take action to look after their sight. The campaign was a huge success with over 330,000 people visiting our website for further information, and one in five people over 50 recalling seeing the campaign. 330,000 people visited our website for further information. Goal 3 Sight-saving treatments We will maintain or increase access to eye treatment services for people at risk of sight loss in NHS services and campaign for new treatments to be made available on the NHS. Through our campaigning activity and the support we give to individuals to fight for their own personal treatments we continue to fight to save sight by ensuring vital treatments are available when they are needed. 20

21 In July we launched our Surgery deferred, sight denied campaign with a parliamentary reception attended by over 40 MPs. We highlighted the inconsistent provision of cataract surgery across the UK that was forcing thousands of people to live with sight loss. It has been an unbelievably busy year in terms of new treatments. Normally one drug would be approved per year but we have helped six through the National Institute for Health and Care Excellence (NICE) and five through the Scottish Medical Consortium (SMC) this year! This means patients have access to new treatments for their eye conditions on the NHS. Our impact We successfully campaigned to secure NICE approval for the use of Lucentis to treat choroidal neovascularisation associated with pathological myopia. This will mean that around 2,000 people per year will be able to access safe and effective treatment and will no longer lose their sight. Our consultation response to the SMC was also successful making Iluvien available to NHS Scotland patients for the treatment of diabetic macular oedema (DMO). Even when sight-saving treatments have been approved by NICE we still have to work with patients to make sure they receive them. We intervened on behalf of two patients who were being denied NICE approved treatment for their eye condition (Lucentis for retinal vein occlusion (RVO) and DMO), despite the treatment being recommended by their ophthalmologists. In both instances the patients were offered the treatment they desperately needed within two days of our contacting the Trust involved. 2,000 people will now get the treatment they need to retain their sight. RNIB Group annual report and financial statements 2013/14 21

22 Carol s story Carol has spent most of her career as a dress maker and upholstery machinist, where detailing is really important. At the age of 63, Carol s cataract deteriorated quickly and began to affect her everyday activities such as sewing and night time driving which during winter months caused a big problem for her getting to work. However, Carol was not eligible for surgery under recent changes to the West Sussex commissioning policy as her visual acuity was deemed too good. Carol appealed this decision with her GP s help, describing the problems she was having in her daily life, but was turned down again. After well over a year of lobbying, with her consultant s support and writing to her MP, Carol contacted RNIB and we took up her case and added the threat of legal action if she did not receive the treatment she needed. Finally, thanks to our support, Carol was able to get the surgery she so desperately needed. I ve been campaigning nearly two years to get surgery - they kept on telling me that I wasn t deteriorating enough so I couldn t get the operation. I found it really difficult to drive in the dark - I found it very hard so I had to give up. I rang up the job centre because I couldn t get to work and they passed me to a different department to claim Access to Work so I could get a taxi to work. It was two months that I got it for: 118 per week. I m so glad RNIB came to my rescue, without their support I m not sure where I would be now. We will fight to ensure that approved sight-saving treatments are available to whoever needs them wherever they are needed. 22 rnib.org.uk

23 Supporting independent living We are committed to doing all we can to help people living with a sight problem to maintain their independence and have the opportunity to lead as full and enjoyable a life as possible. This is why we have spent 89,913,000 this year on the services, support and solutions that enable people to remain independent. Coming to terms with the fact that you are losing your sight is incredibly hard. We want the best possible support to be available to everyone at the time that they need it, and for some this starts directly after diagnosis. We continue to work hard to increase the quantity and quality of support available in the eye clinic for people who are losing their sight. Economic independence is a vital factor in someone s overall independence. We work with employers and blind and partially sighted people to maximise employment opportunities, we also help blind and partially sighted people to access their entitlements and ensure their needs are considered in the planning of new assessment criteria for benefits and welfare support. We are passionate about giving blind and partially sighted children and young people the best possible start in life. We work with education professionals to improve their understanding of growing up with a sight problem and to therefore improve the quality of education available to blind and partially sighted learners. Independent living 89,913, per cent of our expenditure was focussed on supporting people to live independently RNIB Group annual report and financial statements 2013/14 23

24 Goal 1 Eye clinic support We will increase the emotional wellbeing and practical skills of people at the point of diagnosis by continuing to develop the quality and quantity of early intervention support in eye clinics. This year the number of eye clinics and hospital ophthalmology departments in the UK that have a sight loss adviser providing support after diagnosis has risen to 218 (53 per cent coverage so there is still a lot to do). We have continued to raise the standard of this support through specialist training (34 advisers have attended our training course this year) and the introduction of seminars and networking opportunities for sight loss advisers. We highlighted the need for support at this crucial time in a person s life with the launch of our I am here campaign in April 2014, which included our campaign report: Hanging by a thread. The squeeze on NHS resources will continue to present a challenging environment for both the continued funding of existing support and the expansion of this support into areas where there is currently none. 82 per cent of people understand their eye condition better after seeing an adviser. 24

25 Our impact In 2013 we published a report which focused on the impact of sight loss advisers including Eye Clinic Liaison Officers (ECLOs) in England, Wales and Northern Ireland and Vision Support Services in Scotland. The research demonstrated the positive impact of the role on people diagnosed with a sight threatening eye condition: 86 per cent of patients said they felt more reassured leaving the eye clinic after receiving information and support from an adviser. 82 per cent of patients said that their understanding of their eye condition was improved by seeing an adviser. 73 per cent of patients said they had a better understanding of how to care for and treat their eye condition as a result of seeing an adviser. 92 per cent of patients said they had a better understanding of the support available to help them outside of the eye clinic / hospital as a result of seeing an adviser. [The adviser in the eye clinic] was very good, even though I did not have much time and [the adviser] from the RNIB was also very good. In fact they have been brilliant. The ECLO post at Moorfields hospital was initially funded by RNIB, but has now been established as a substantive post funded by the hospital. We are now providing initial funding of a second ECLO post to provide support in two of Moorfields largest district hubs at Northwick Park and Ealing in North West London. It is estimated that this post will support approximately 800 patients per annum. Professional Networks were established in 2013 to share best practice and by August the Early Intervention Staff Network had 173 members and a Linked In group for Eye Care Professionals had 132 members. RNIB Group annual report and financial statements 2013/14 25

26 Goal 2 Welfare benefit advice We will increase the knowledge and preparedness of blind and partially sighted people for the transition from DLA to PIP in 2014 and Personal Independence Payment (PIP) is the benefit replacing Disability Living Allowance (DLA) for those aged 16 to 65. It was introduced in selected pilot areas in April 2013 and nationwide in June At present, it applies to new claimants, those turning 16 and those who choose to move from DLA. The current intention is for it to be phased in from October 2015 probably on a region-by-region basis. Our PIP campaign to defend the rights of blind and partially sighted people was a notable success for RNIB. Our work protected the 2009 extension of the Higher Rate Mobility component of DLA to severely visually impaired people. We also secured vital improvements to the daily living criteria for blind and partially sighted people. These are major achievements and reflect significant gains on the Government s draft PIP criteria. 14.5million in previously unclaimed benefits identified. 26 rnib.org.uk

27 Our impact We are now providing information and advice on claiming PIP, with over 1,000 people signing up to our updates each quarter. It is too early to say whether blind and partially sighted people are better or worse off under this new benefit, but we are monitoring results, and our work will continue into 2014/15 and beyond. This year we secured 14.5million in previously unidentified welfare benefit entitlements for blind and partially sighted people. It has made such a difference. It doesn t sound like a huge amount but it does make a difference and my quality of life is better for it. For a start I wouldn t have been able to visit my family as often as I do without it. John s benefit entitlement was increased by 45 per week after his consultation with RNIB s advice team. Goal 3 Achieving a better education We will improve the quality of education for blind and partially sighted people by increasing the support and information available to education professionals and making mainstream education accessible. In the UK today there are 25,000 blind and partially sighted children and young people who require specialist education support. 50 per cent have additional disabilities as well as sight loss, and 66 per cent are educated in a mainstream setting. We continue to work to improve the understanding and development of education professionals to better support blind and partially sighted children and young people through training courses for teaching staff, facilitating specialist professional networks and providing vital resources to improve the standard of teaching that children and young people receive. 27

28 Our impact Feedback from the professionals who take part in our training is that the information they receive will directly benefit the pupils they support. Two participants commented: An excellent course, directly relevant to my job. The discussion groups were particularly useful, providing lots of interesting ideas and insights. Highly recommended. This course has been invaluable and will definitely improve my working practice. Load2Learn, a joint project with Dyslexia Action, provides free accessible curriculum resources to support learners who cannot use standard print materials. Load2Learn now has over 5,000 registered users, 2,500 books available for download and new resources being added all the time. We host the online VI Forum for professionals to share resources and tips. There are approximately 1,500 registered users of the forum, mainly drawn from teachers, support staff and technicians working in schools and local authority teams, and there are posts every day from people seeking and offering information and advice. This activity forms a key part of our role in promoting effective practice in the education and development of blind and partially sighted children and young people. 28

29 The head of one local authority Visual Impairment team, who has worked with us over a number of years to provide accredited training for teaching assistants, support staff and early years practitioners said: We have made use of Standards Fund or similar monies to enable staff in mainstream and special schools and settings to access this targeted course. The result is that we now have a large number of skilled people with a high level of specialist knowledge who have a direct and very positive effect on the inclusion of our children across the authority. 2,500 accessible books available to download. Goal 4 Helping people into work We will increase the employment opportunity of blind and partially sighted people of working age by increasing their work-related skills and confidence and working with employers to raise awareness. Losing your sight does not mean you are unable to work. We work with employers to help them understand how they can retain staff when they are losing their sight, or employ people living with sight loss. We also work with blind and partially sighted people to help raise their skill and confidence levels to the point where they can gain or retain employment. Our impact This year we have helped 124 people into work, and supported 153 people to retain their job when they were losing their sight. Our Trainee Grade Scheme gives people who have lost their sight the opportunity to learn new skills and prepare for employment through work placements designed to help them learn new skills and get ready for the workplace. This year 85 per cent of Trainee Grade Scheme participants moved into employment. In comparison the average job entry rate over the last 10 years of the scheme has been 70 per cent so this year has been an exceptional one in supporting people into employment. RNIB Group annual report and financial statements 2013/14 29

30 One of the most exciting developments has been the launch of the Action Employment Line, an employment advice and information service for blind and partially sighted people in work or seeking work, employers and employment professionals. 1,200 people received support and advice during the year. Most notably from April 2013, the service began offering up to three, one hour long sessions for job seekers who were unable to reach the Action office. Brian from East Sussex explained, In my village, the bus to Brighton comes on a Tuesday and returns on Thursday, that s hopeless, and without the Action Employment Line I don t know if I would ever have talked to someone about getting back to work and the support available through Access to Work which is vital in rural parts. Over the last three years through our Enabler project we have been working with blind and partially sighted people and employment specialists to increase our understanding of the barriers to employment people experience. Through the Enabler project we have developed an assessment toolkit which is changing the way we, and other organisations, help blind and partially sighted people to find work. It has been used by our regional employment teams and at RNIB College Loughborough. Notably, it has been recognised as a useful tool by a number of mainstream providers delivering employment programmes for the Department for Work and Pensions. An adult student on RNIB College Loughborough s employment programme recently secured a job. He said: I m nothing special, I just have a determination to work and provide for my wife and family! I have never been unemployed in my life and I don t like it!! I just gave the placement my all and tried to show that my disability doesn t affect the way I can work and make a contribution to the workforce. Please don t forget, all this was made possible with the help and support of the college staff. They are the ones who deserve the praise!! Without them I wouldn t have the tools. They inspired me with their professionalism and support. people helped to retain their job or find new employment rnib.org.uk

31 Other highlights Our Helpline and information and advice services dealt with over 500,000 enquiries during the year. The RNIB Specialist Learning Trust was established in September 2013 and became an academy sponsor for the Three Spires School in Coventry. As a sponsor we will drive up standards in the school, expand our reach as a provider of education and support services, and use our expertise to benefit other local schools and the wider community. RNIB Pears Centre for Specialist Learning school and children s home were both judged as Outstanding by Ofsted in The school was also awarded a gold standard Inclusion Quality Mark in With support from the Big Lottery Fund we launched our Future In-Sight project in Wales to improve the employment chances of year olds with sight loss. With our partners we worked with individuals and employers in a range of different ways raise awareness amongst employers and build the confidence of the young people. Since the start of the project, four young people have already completed work experience placements, another five are currently on placement and another three are due to start shortly. RNIB Sunshine House Children s Home was judged as Outstanding in We gave support to over 27,500 people in choosing and using products that would improve their ability to live independently. Action for Blind People successfully launched the new Living with Sight Loss courses, which over the last twelve months have seen a number of people benefiting from confidence building sessions. The programme now includes a two-day Finding your Feet course and the traditional six-week Living with Sight Loss courses. Those attending have had some transformative effects; from taking a bus for the first time in years to regaining the confidence to start looking for work and starting their own clubs. [The course] has given me the confidence now to get out there and do it. RNIB Group annual report and financial statements 2013/14 31

32 There are currently 29 Actionnaires clubs across England and Wales for 4 to 16 year olds, offering a whole range of activities including swimming, archery, skiing, horse riding and tenpin bowling. Our National Library Service had around 39,000 customers receiving books in their preferred reading format. The audience for RNIB s Insight Radio continued to grow this year reaching 127,000 listeners. In Northern Ireland we launched our Looking Forward service which provides free counselling for older people with sight loss. During the sessions I attended I found the counsellor who I met was very supportive and empathetic towards my own emotional needs. I found the sessions very useful and the experience really helped me to process the thoughts I had towards my sight loss. I felt isolated and alone and cut off from my family and loved ones and it helped me to cope better with my condition. I would strongly recommend this Looking Forward service to other people my age who need to know they need not face this emotional journey alone. Elsie, who used the free counselling service this year. 500,000 enquiries dealt with by our Helpline. 32 rnib.org.uk

33 Amy s story Because the cause of my sight loss was not easily identifiable there were a lot of unanswerable questions and uncertainty. It was not clear if the loss was permanent, temporary or would partially or fully recover or deteriorate. It was very much wait and see and hope for the best. Because I had no definite diagnosis I was left in limbo and did not know what would happen. I could not see fine details and small print so could not do my job as a primary teacher. I needed to learn how to manage the symptoms and thought there must be ways of overcoming the barriers so I could return to work. I feared for my job and future. I went home where I became steadily anxious and frightened for my job. I then heard of an ECLO. The next time I was in the hospital I dropped in and I spoke to a very nice lady. She gave me some information so I knew where to access help when I was ready. She also got me seen at the Low Vision Clinic there and then and I was given a magnifier which then enabled me to read letters and other important things. Three years later the magnifier is my lifeline and I can t be without it. For the first time in months I had hope and a way of enabling me to do things independently without having to rely on others and that was thanks to the ECLO. We want to ensure ECLO posts that are at risk of ending in 2014 receive the urgent funding they need to continue and we want to create sustainable long term funding for these services. RNIB Group annual report and financial statements 2013/14 33

34 Creating an inclusive society We want the UK to be a better place to live for people who are blind or partially sighted. In 2013/14 we spent 9,741,000 working to improve the travel, shopping and banking experiences for people with sight problems, as well as ensuring better ways to read, watch television and get the most from technology. Accessible mobile phones and the internet can be vital components of living independently for people with sight problems, and we worked with manufacturers and service providers to improve the accessibility of devices and online services. Finding the confidence to travel when you lose your sight can be difficult. We want blind and partially sighted people to get around safely and independently. To achieve this, we support blind and partially sighted people to challenge poor practice and work with transport organisations to make their services more accessible. Creating an inclusive society 9,741,000 8 per cent of our expenditure was focussed on creating a more inclusive society 34 rnib.org.uk

35 Goal 1 Independent travel We will improve the experience of independent travel of blind and partially sighted people by improving the range of accessible technology solutions and promoting good practice amongst travel providers. The ability to travel confidently and safely is a vital part of independence. Transport accessibility forms a significant part of our work. Our members have told us that bus travel remains a priority for them. Over the last eighteen months we have been running our Stop for Me; Speak to Me campaign. We have challenged bus operators to revise their services to make them usable by blind and partially sighted people, including stopping at a bus stop if a person is waiting, providing information about available seating and notifying customers of their selected destination. We have worked with national and local transport providers to improve services and access to information for blind and partially sighted people. Through our good practice initiative, we have recognised, amongst others, Trent Barton Buses, Nottingham City Council, Southern Rail, Network Rail and Transport for London for improving services and we have used these as examples to challenge other providers to recognise and better meet the needs of blind and partially sighted people. Our impact As a result of our campaign Transport for London and Stagecoach East of England have already removed request signs, while national operator, First Group, has agreed to endorse our bus charter, along with Kinch and Reading buses. We have organised over thirty Swap with me events across England and Wales. These provided opportunities for bus drivers and customers to share service and user experiences. 35

36 There have been trials of travel support and familiarisation schemes to help blind and partially sighted people get out and about and to learn the routes that they need to take on a regular basis. We have also finalised the development of the RNIB Navigator wayfinding app for smartphones, which will enable users to pinpoint location and follow directions to a chosen destination. The friend of a regular bus user who attended a Worcester event said: The awareness raising event was an excellent idea and she wanted to report that she got on the bus this morning [First] and the driver was very polite and helpful and did not drive off until she had sat down she was very pleased. Keep up the good work! Goal 2 Control of your money We will increase the opportunity for blind and partially sighted people to shop and control their own money by influencing the accessibility of technology and the customer experience. We have enabled people with sight loss to shop more independently by working with industry and retailers to improve the accessibility of packaging and the services provided to blind and partially sighted shoppers. Our influence has extended within the financial sector as the number of talking ATMs available to blind and partially sighted people who want to manage their money independently continues to grow. Our impact When we launched Make Money Talk in March 2011, there were only 60 audio enabled machines on trial in Northern Ireland. No banks were interested in installing more. Today, 11 per cent of the estimated 64,500 UK ATMs talk (7,000 machines). This includes 82 per cent of Barclays estate (some 3,430 machines), the first bank to respond to our talking ATMs challenge. And The Co-operative Bank, which became the first bank to audio enable all of its ATM estate (2,700 machines). We have secured public commitments from all the leading high street banks to install talking ATMs, including Lloyds Group, HSBC, RBS/ Natwest, Santander and Nationwide. This means that blind and partially sighted people 36 rnib.org.uk

37 can now manage their money safely and securely in the high street, and at many supermarket ATMs, for the first time. Over the last year, in partnership with London College of Fashion, the British Retail Consortium and the Charity Retailers Association we have produced a comprehensive Top Tips guide and video on how best to advise people with sight loss, and give them the information they need to be able to make an informed choice. In online shopping, we continue to review the website accessibility of the leading brands, recognising the increasing use of applications as blind and partially sighted smartphone users choose to shop on the go. A highlight of our work was engaging with John Lewis in the development of its accessible shopping app for ios, which we also recognised as a beacon of good practice setting the standard for retailers in meeting the needs of blind and partially sighted people. We worked with them to develop this it was launched in July 2013 and we are now working with Waitrose. Appreciating what a lifeline the internet can be for blind and partially sighted people, especially those lacking the confidence to get out and about, we have also looked to address online security. Our work with VISA has secured its verbal commitment to make its new V.me secure online payment system accessible at launch. V.me will form part of the verification process for customers as they make an online purchase using a credit card. Whilst no launch date has been confirmed, we are optimistic that VISA will deliver on this promise. If so, this will be a major step forward in improving accessibility and the online shopping experience for blind and partially sighted people. In Northern Ireland we worked with Shopmobility to train volunteers and launch a sighted guide shopping service for blind and partially sighted people. Ryan McCartney who is 25 years old and has accessed the sighted guide service said It has made shopping more of a social experience for me and I hope this service continues as it has really improved my self confidence as I am able to go out shopping without family or friends being with me. 7,000 talking cash machines now available. RNIB Group annual report and financial statements 2013/14 37

38 Goal 3 Mobiles and online We will increase access for blind and partially sighted people to information, services and apps by influencing the accessibility of online services and mobile phones. We continually lobby and engage with the big names in new technology to ensure that the needs of blind and partially sighted people are included when new products are developed. The latest mobile operating system from Apple launched in September ios7 offered a number of new features which improved use for blind and partially sighted people. However, there was widespread criticism of the visual design which caused legibility issues, particularly for those with partial vision. We were quick to engage with Apple to address the problems, who have now incorporated many of our recommendations in ios7.1. This will make a huge difference to blind and partially sighted users of Apple and should allow them to enjoy all the benefits of integrated accessibility with better tonal contrast. RNIB was the accessibility partner in Nokia s Go Create app competition, which challenged developers to create a Windows Phone app. The competition included a number of different categories, or missions. One of the missions this year was the Do Good mission, which was to create an app which would make the life of someone with low vision easier. In January 2014 there were 142 apps entered from 30 countries and 16 were shortlisted. The winner of this unique mission was The Funnies, an app for kids, which includes several mini games where the kids have fun and learn at the same time. 3,000 people received support to learn new technology 38 rnib.org.uk

39 Our impact November 2013 marked our third annual Switch on to Technology month, aiming to raise awareness of the benefits of information technology for blind and partially sighted people. During the month we launched user guides, video tutorials and held hands-on taster events covering the latest on mobile phones, computers and the internet for people new to technology. And with the huge growth in the use of mobile technology to get out and about, this has become even more pertinent for blind and partially sighted people. One event participant commented: I only hope I am able to retain all the wonderful information provided. I have this morning ordered the fact sheets from RNIB which I hope will assist me in this. Please pass on my thanks to Steve, Sally and Pete. Suffice it to say, it is the first time I have had such good information which will go a long way to helping me make an informed decision on what I should buy to suit my needs. Lack of information has been my reason for not purchasing products with new technology until now. My next task is to visit the Apple shop in Belfast! Our Technology Support Squad continued to change the lives of blind and partially sighted people this year by bringing them closer to the difference technology could make. This year over 500 volunteers gave blind and partially sighted people this vital advice. I m now doing things on the computer I never dreamed I d be able to. It gives me such peace of mind, knowing I can shop online if I need to or contact my daughter. I m so grateful to Phil [the Technology Support Squad volunteer] who made it all possible. Glenda, a first time user of the Technology Support Squad in Our Phone Watch events give people the opportunity to learn about the latest developments in mobile and tablet technology. This year there were events across the UK which were attended by over 200 people. It was meeting other blind and partially sighted people and talking about how they use their mobile which helped me probably more than the presentations! I ve learnt so much and it s made such a difference to me. Gary, who attended his first Phone Watch event in Birmingham in RNIB Group annual report and financial statements 2013/14 39

40 Aygun s story Aygun had already retired from working as a plumber when he began to lose his sight from age-related macular degeneration. Although still active and keen to get out and about and see his friends and family as much as possible he began to lose confidence and felt he was retreating into his shell a little bit. I was finding it more and more difficult to find the motivation to get out of the house, and when I was in the house I was doing less and less! Just sitting on the sofa waiting for something to happen. Aygun s daughter contacted RNIB when she became aware that her father s sight had deteriorated so much. She wanted some ideas as to how he could get out more and make the most of his time at home. Aygun had always wanted to get online so he could stay in touch with his family in the UK and in Cyprus. James from our Technology Support Squad helped Aygun choose the right laptop for him and then helped him learn how to use it. We also put Aygun in touch with some local support to help build his confidence to get out and about more. Being able to talk with my family online has been so fantastic. I can t believe I waited so long to learn how to do it! But I m so grateful to RNIB for helping me learn the skills. Getting out and about is getting a bit easier now as well. I ve been given some really useful tips by my trainer and found a few people to talk to in a similar position to me. We want to increase the opportunities for blind and partially sighted people to live more independently and get out and about confidently and safely. 40 rnib.org.uk

41 Financial review We are now at the end of the RNIB Group strategy for the five years to March This has been based around the three aims of prevention of sight loss, independent living and creating an inclusive society. The Group Statement of Financial Activities (SoFA) reflects our strategy. In 2013/14, 62 per cent (2013: 61 per cent) of our overall incoming resources came from fundraising activity (including 34 per cent, or 40.8million, from legacies; 2013: 35 per cent or 40.7million), 37 per cent (2013: 37 per cent) from service related income and 1 per cent (2013: 2 per cent) from other sources. Donations and Gifts rose by 2.1million due to increased receipts from individual giving, community fundraising and major donors as well as gifts on association. The gift on association relates to the long leasehold property transferred to RNIB Specialist Learning Trust from the local authority. Like many other voluntary organisations, we have felt the impact of government cuts on our service income but through a renewed focus this has risen by 0.5million or 1 per cent (2013: fall of 1.2million or 3 per cent). We endeavour to be constantly and consistently more effective whilst ensuring we are delivering to meet the needs of blind and partially sighted people. Group incoming resources have risen by 1.6million (2013: risen by 5.4 million). This is due to the two areas highlighted above, together with an increase in income from the defined benefit scheme of 1.4million (2013: fall of 0.9 million) which have been offset by a fall in gains on disposal of properties which amounted to 2.2million (2013: rise of 1.5 million) and a fall in investment income of 0.3million (2013: rise of 0.3million). Group resources expended were split between supporting our three strategic aims of prevention of sight loss (3 per cent; 2013: 3 per cent), independent living (75 per cent; 2013: 75 per cent) and creating an inclusive society (8 per cent; 2013: 9 per cent), together with the costs of raising funds (13 per cent; 2013: 12 per cent) and the governance costs for the organisation (1 per cent; 2013: 1 per cent). What we did with these resources is explained in Our work in 2013/14 earlier in this report. Total resources expended have risen by 4.2million primarily due to increased investment in our fundraising activities to protect and grow our income for the future, together with spend to help people live full and independent lives. RNIB s associated charities are Action for Blind People, Cardiff Institute for the Blind (CIB), National Talking Newspapers and Magazines (NTNM) and RNIB Specialist Learning Trust. These charities contributed income of 23.4million (2013: 23.1million) of which 10.9million related to grants from RNIB (2013: 12.3million) and charitable activities of 22.4million (2013: 23.3million) to the Group in 2013/14 (note 4). Free reserves at the end of the year stood at 22.5million (2013: 20.7million), which is favourable to our reserves policy. This is primarily due to the increase in the legacy debtor year on year of 2.5million. An actuarial valuation was carried out at 31 March 2012 by the Pension Scheme s actuaries Aon Hewitt, using the projected unit method. The valuation disclosed that the RNIB Group annual report and financial statements 2013/14 41

42 market value of the Scheme s assets (excluding Voluntary Contributions) at that date was 149million, and that there was a deficit (calculated as the excess of the market value of the Scheme s assets to the value of its past service ongoing liabilities, with allowance for future pay increases) of 10.1million. Contributions by RNIB on the defined benefit element of the Scheme increased to 12.9 per cent of pensionable salaries. In addition RNIB and Action share the administrative costs of the Scheme. As a part of the recovery plan RNIB agreed to make additional contributions of 828,000 a year until 30 June The two subsidiary trading companies of the Group contributed 221,000 (2013: 378,000) to the RNIB Group through gift aid, and two subsidiary charities gifted 278,000 (2013: 267,000) to RNIB. We are very grateful for the continued support of donors through legacies, gifts and donations, as well as the work of our many volunteers, which allows the vital work of RNIB to continue. The challenge of raising 68.1million (2013: 66.5million) for 2014/15 is a tall mountain to climb but we are convinced that we will achieve it so that we can ensure blind and partially sighted people receive the support they need and deserve. Fundraising review Total voluntary income for 2013/14 amounted to 71.7million (2013: 69.5million), an increase of 2.2million against 2012/13 and ahead of our budget for the year. We are pleased to have achieved this against the background of the current economic difficulties that we all face. Gifts in kind included in voluntary income (but not budgeted for) amount to 0.3million (2013: 0.4million) for pro bono work from various firms of lawyers and 0.2 million (2013: 1.1million) for advertising. There is also 3million (2013: 2.9million) of lottery and statutory grants within income from charitable activities which is actively supported by our fundraising team. On 1 April 2009 RNIB and Action entered into an association agreement. Under the terms of that agreement RNIB has taken over the responsibility for the fundraising operation of Action in return for a grant. The grant in 2013/14 amounted to 8.4million (2013: 8.4million). The net proceeds of this fundraising activity have been restricted within these financial statements for the benefit of Action. Fundraising costs for 2013/14 amounted to 15.7million (2013: 14.4million). The fundraising costs are net of an internal recharge in the sum of 5.2million (2013: 5.2million) for costs incurred in raising public awareness about matters relating to sight loss. These costs have been included within the costs of Charitable activities. We have continued to invest in our supporter relationship management programme, which we regard as an essential investment to secure long-term income. It will also help us to be more efficient in communicating essential messages and collecting donations. Our investment in fundraising is vital to sustaining our income and our ability to plan and fund direct services, but we remain focused on driving efficiencies and reducing our costs. RNIB is a member of the Fundraising Standards Board (FRSB) scheme, the body of self-regulation of fundraising in the UK, and as a member we adhere to the highest standards of good practice. RNIB is also a member of the Institute of Fundraising and adheres to contemporary best practice codes of fundraising. 42 rnib.org.uk

43 Our volunteers Volunteers are critical to our ability to deliver for people affected by sight loss and currently deliver an impressive range of activities across all of RNIB Group s work: in our care homes, schools, in small community projects and large services, fundraising and campaigning. Some examples are our volunteers delivering ipad taster sessions in Northern Ireland, our volunteers helping to deliver Living with Sight Loss courses around the UK, and our volunteers campaigning locally and nationally to make every day better for blind and partially sighted people. Across RNIB Group we benefit from the support of 4,020 volunteers (2013: 3,800) who between them carried out 5,810 individual volunteer roles (2013: figure not available) during the year and contributed around 35,750 hours (2013: 33,800) of their time every month. We carry out a volunteering impact survey every two years to understand the difference our volunteers make. Employing disabled people RNIB recognises the exclusion and disadvantages that disabled people experience as a result of social, economic, and material barriers, created by the world in which we live. RNIB also recognises that disabled people may be enabled by learning additional skills. RNIB is working to ensure that disabled people receive the maximum possible benefit that can accrue to them through the Equality Act (Disability Discrimination Act in Northern Ireland). As an employer, RNIB takes steps to ensure that it meets its obligations under the law and, where possible, exceeds them. This includes making reasonable adjustments to meet the needs of disabled job applicants and employees. RNIB extends this principle to committee members, Trustees and volunteers in line with best practice. Currently 10.5 per cent (2013: 12 per cent) of our employees are disabled. Through dedicated resources in our IT team we are able to provide specialist advice and support to ensure that disabled staff have the appropriate equipment and training to perform effectively. Additional reasonable adjustments are also made for disabled staff as required. RNIB also operates a trainee scheme to provide work opportunities for blind and partially sighted people and these have been successful in providing a route to permanent employment both within and external to RNIB. The engagements last for a year and as at April this year we have 14 people involved in the scheme. Engagement with staff RNIB has a number of mechanisms for engaging with staff and seeking their views, both formal and informal. Our Staff Information and Consultation Forums meet at site, regional and national level to discuss areas that are specifically of interest to staff but also to receive information about the financial health of the organisation and how we are achieving our strategic goals. Staff are also increasingly using the internal intranet discussion boards to share ideas and raise issues. RNIB Group annual report and financial statements 2013/14 43

44 During the last year elections have been undertaken to fill the staff forum representative posts and representatives have received additional training to support their roles and responsibilities. A new position of chair of the forum was created and appointed to, and the forum has been engaged in an increasing range of discussions which have included the workplace pension auto enrolment scheme and pay and reward matters. The staff survey run in January 2014 showed favourable results when benchmarked against the charity sector averages with scores of 64 per cent of staff agreeing that they would recommend RNIB as a good place to work and 88 per cent of staff understanding the aims of the charity. Investment policy Statement of investment principles Investment decisions are taken on the advice of the Investment Committee whose members have a finance, investment or commercial background. The Charity s investment policy is to hold assets to achieve an appropriate return with an appropriate level of risk when considered alongside the Charity s business plan and level of reserves. It has three investment objectives: to invest prudently the basic investment strategy of the Charity has been to invest in a way that the minimum level of reserves is very likely to remain covered, but with some investment risk being taken on the assets over and above this minimum level; to invest in liquid assets the Charity could call upon its quoted investments at any point. It should be straightforward to sell the Charity s assets down to cash, and doing so should result in the cash being available quickly and without the potential for significant adverse impact on the value of investments; to invest ethically the Charity wishes to avoid unethical investments, and in particular tobacco stocks due to the link between smoking and certain conditions that result in sight loss. The benchmark allocation for investments is per cent in equities, per cent in bonds and per cent in cash. This strategy was developed with the advice of Hewitt Associates and takes into account the nature of the Charity s business as reflected in its business plans. At 31 March 2014 the allocation of investments is 27 per cent in equities, 34 per cent in bonds and 39 per cent in cash. It is the Charity s intention to maintain sufficient short term cash holdings to meet fluctuating needs, and to make appropriate use of an overdraft facility as required with the Royal Bank of Scotland. The Charity s reserves policy is to set the level of free reserves using a risk-based approach. The level of reserves is reviewed on an annual basis and is currently set at 20million. Planned project expenditure from designated funds and the current economic uncertainty have led the Charity to hold its investments in a low risk and liquid portfolio. 44 rnib.org.uk

45 It is the Charity s aim to perform an annual desk top review of Investment Managers and to meet them as appropriate. The Charity has mandates with Legal & General and Foreign & Colonial (F&C) and fee structures are: Legal & General Ethical Trust 0.3 per cent per annum; Legal & General Cash Trust 0.2 per cent per annum; Foreign & Colonial Ethical Bond Fund Share Class per cent per annum. The Endowment Funds are managed by F&C. F&C fee structures are: Foreign & Colonial Ethical Bond Fund Share Class per cent per annum; Foreign & Colonial Stewardship Income Fund (Dist) Share Class per cent per annum. The Group investments include a further 49,000 (2013: 47,000) relating to CIB and 9,145,000 (2013: 8,522,000) to Action for Blind People. Other than the investments of Staffordshire Blind, all Action s funds are now managed by Legal & General, using pooled funds to match the allocation set out in their investment strategy, and their performance is closely monitored against, and closely matches, publicly available market benchmarks. The investments of Staffordshire Blind are managed by Investec Wealth and Investment. Investment performance The funds in which the investments are held are measured against agreed benchmark indices for each relevant holding. The performance for the investments held by RNIB as at 31 March 2014 against each fund s benchmark index is detailed in the following table. Value at 31 March 2014 Actual holding Target holding +/- Performance in year to 31 March 2014 % % % Fund Benchmark +/- % % Cash 7, Corporate 6, bonds UK 4, equities Total 18, As our UK equities are invested in an Ethical fund, the stocks in the index are screened before being accepted into the fund. Cash deposits are placed on behalf of the RNIB Group including the Associated Charities by their respective banking organisations. RNIB Group annual report and financial statements 2013/14 45

46 At 31 March 2014 the Group s cash and short-term deposits stood at 2.1million (2013: 3.7million). During the year the Group interest received on cash and short-term deposits was 8,000 (2013: 12,000) of which 2,000 (2013: 4,000) related to the RNIB Charity. The RNIB Charity s short-term deposits were all overnight places and the average return made was 0.17 per cent (2013: 0.20 per cent). At 31 March 2014 the unrealised loss on the Endowment Funds was 32,000 (2013: gain 540,000), and the breakdown of the unrealised loss by fund can be found in note 20. The Elizabeth Eagle-Bott and Dr Duncan Leeds Funds are held in both the F&C Stewardship Fund and the F&C Ethical Bond Fund. The Emma Nye Fund is held in the F&C Stewardship Fund only. The Bristol Blind and GDC Rushton Funds are held in the F&C Ethical Bond Fund only. The Sunshine Fund is held in the F&C Ethical Bond Fund, F&C Stewardship Fund and F&C Money Markets Fund. Reserves policy RNIB s reserves policy focuses on the level of free reserves. Free reserves exclude restricted funds and designated funds, which include the net book value of land and buildings occupied by RNIB services and activities. The assessment of free reserves excludes any surplus or deficit reported on the pension scheme. The recommended free reserves level is calculated annually in advance of the budget process on the basis of the financial impact of the current risks facing RNIB. The reserves policy is reviewed annually by the Trustees. RNIB seeks to maintain free reserves to manage the risks to which the Charity is exposed in the course of its business, including but not limited to safeguarding against volatile income, both voluntary and service. The Trustees consider that in order to meet these needs, and to operate effectively, RNIB needs reserves of around 20million based on the current analysis of risk. RNIB s free reserves were 22.5million at 31 March 2014 (2013: 20.7million). The Trustees have agreed a business plan in support of the strategy which aims to keep reserves close to the reserves policy level during the new strategy period. The actuarial valuation of RNIB s Pension Scheme at 31 March 2014 for the purposes of FRS17 showed a surplus of 6.5million (2013: 4.4million), which is added to the level of free reserves as required by FRS17. The corresponding asset does not result in an immediate cash flow impact on the Charity. A full triennial valuation of the pension fund took place as at 31 March 2014 and the updated valuation has been produced and considered by the Pension Scheme Trustees. Contributions to the scheme are met through planned income. The level of free reserves has been calculated excluding the FRS17 surplus. 46 rnib.org.uk

47 At 31 March 2014 RNIB held designated funds totalling 46.7million (2013: 48.9million). Of this, 39.6million (2013: 39.7million) relates to properties and 1.7million (2013: 1.7million) relates to other assets. Both of these are used directly in undertaking RNIB s objectives. The remaining funds amounting to 5.4million (2013: 7.5million) represent the investment and mergers funds together with amounts expected to be spent within three years on the maintenance and replacement of properties and other assets and specific projects. The fund definitions can be found within note 20. Where restricted fund balances are in a deficit situation, then unless these will be covered by forthcoming receipts, the deficit balances are charged to general funds. Such balances in 2014 amounted to 36,000 (2013: 173,000), all of which are to be covered by forthcoming receipts. Risk management Risk is not only about threats that have to be managed; it is equally about the potential failure to seize opportunities. RNIB views the strategic management of risk as an integral part of its decision making processes and culture, supporting effective planning and evaluation of its activities. Risk management is focused on risks associated with delivering our 2014/19 strategy and business plan, with identified risks embedded in our strategic and operational management processes. Governance of the Group s risk management ultimately sits with the Board of Trustees. Detailed consideration of risk is delegated to Audit Committee, who are assisted by senior management in continually reviewing risk and reporting to the Board. Our risk management approach details the structures and processes that have been put in place, and the key roles and responsibilities for successful risk management. We established an internal strategic risk committee (led by senior officers) who will undertake formal review of strategic and significant operational risks every quarter and play a key role in ensuring mitigation plans are up to date and relevant. The internal strategic risk committee report directly to Strategic Management Team, who in turn report on risk management to Audit Committee twice a year. In preparation for the new strategic period 2014/19 the internal strategic risk committee reviewed our existing strategic risk register, risks identified through business planning and considered the wider external environment. As a result they have developed a new set of strategic risks and risk factors which have been signed off by the Board of Trustees. There are six key strategic risks which cover both external and internal risks: Risk 1: Insufficient resources to deliver the 2014/19 strategy. Risk 2: Inability to respond to a significant change in the external environment. Risk 3: We do not have the right trustee, employee and volunteer capacity or capability. Risk 4: We do not have adequate and appropriate IT and digital infrastructure to deliver our strategy. Risk 5: We do not have adequate or appropriate governance or processes in place. Risk 6: Our actions or behaviour damages the RNIB Group brand or reputation with key stakeholders. RNIB Group annual report and financial statements 2013/14 47

48 In order to manage these risks there are a number of controls and mitigations in place including (but not limited to): 1. Five year strategy, business plan and budget which has regular Strategic Management Team and Board of Trustees oversight. 2. Strategically aligned Governance structures including subsidy charity agreements. 3. Group wide organisational values. 4. Financial controls and policies (such as reserves, investment policies and ethical fundraising). 5. Disaster recovery and business continuity planning. 6. Controls related to statutory compliance obligations (such as health and safety, data protection, safeguarding). 7. Proactive and targeted campaigning. 8. Involvement of blind and partially sighted people in our campaign and influencing work. 9. Strategic partnership work. 10. Staff and volunteer recruitment policy and procedures which are aligned to strategy. Overall, deployment of the Group s risk management controls and mitigations continue to remain effective where they are already well embedded, and where new risks have been identified mitigations are being implemented. The Board of Trustees are therefore satisfied that the major risks have been identified and processes for addressing them have been put in place. It is recognised that any control systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. Overall we are confident our risk position remains within acceptable levels. Going concern Having reviewed the strategic risks facing the Charity, the business plan for the period 2014/15 and beyond, and the cash and investments forecast over the same period, the Board of Trustees considers that there are sufficient reserves held at 31 March 2014 to manage those risks successfully despite the current uncertain economic outlook. The Trustees consider that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements. Health, safety and the environment We are firmly committed to achieving our goals of environmental sustainability and ensuring the safety of our people through the continued development of our safety, 48 rnib.org.uk

49 health and environmental management systems. We recognise that our people are our single most important asset within the organisation. Through the provision of sound risk management techniques and a comprehensive training programme we will ensure they are both competent and confident to undertake their roles; working in ways which are efficient and cost effective for the benefit of all who work in and access our services. Environmental impact We continue in our aim to reduce our environmental impact, in particular our carbon footprint. Our objectives are to maximise the environmental efficiency of our buildings and activities, making smarter use of resources, reducing our waste output and avoiding unnecessary costs. We have identified five priorities to address: zero carbon, zero waste, health and happiness, sustainable materials and sustainable transport. We continue to set our targets and compare our figures against the RNIB Charity figures agreed as a baseline in 2010/11. At the same time we follow the international environmental management standard ISO and are committed to continual improvement of our performance against applicable environmental legislation through our working practices. The performance for the year against our targets is set out in the following table. We have revised our baseline and previous year s figures for zero waste to reflect best practice in terms of conversion rates. Priority Target 2013/ /13 Zero carbon Buildings 10 per cent total reduction (CO2 tonnes) over five years [baseline 4,104] 4,085 (slight reduction from baseline) 4,270 (4 per cent increase from baseline) Zero waste Zero waste Sustainable transport Sustainable materials Health and happiness Health and happiness Reduce total waste by 10 per cent over five years [baseline 602] Recycling rate of 40 per cent per annum Reduce air, road and rail travel (CO2 tonnes) by 2.5 per cent per annum for five years [baseline 846] Develop a sustainable procurement policy Reduce staff sickness levels from 10 working days in 2011 Improve staff satisfaction ratings in biennial staff survey from 73 per cent 549 (9 per cent decrease) 603 (3 per cent decrease) 44 per cent 37 per cent 655 (23 per cent reduction) Implemented 671 (18 per cent reduction) Policy approved days 10 days 64 per cent Results available autumn RNIB Group annual report and financial statements 2013/14 49

50 Zero carbon The figures represent the amount of electricity/gas usage in our buildings converted to carbon tonnes. This year there has been a slight reduction (less than 1 per cent from the baseline) in CO2 tonnes energy used for our buildings. Although a modest overall average percentage reduction, actually there were twelve RNIB establishments that have used less electricity and gas. Zero waste New conversion factors have been used this year to better reflect the waste generated at our establishments. From the information provided, RNIB Group as a whole has an average recycling rate of 44 per cent, with 12 establishments achieving more than 50 per cent in their recycling efforts. Sustainable transport There has been three consecutive years of reductions in CO2 emissions, with this year s being the highest with a 23 per cent reduction from the baseline figure. We continue to encourage staff to think about planning meeting and activities to ensure minimal transport journeys and to use the most appropriate form of transport when required. Sustainable materials Our Procurement team has now issued our Sustainable Procurement Policy. This supports more efficient processes for the evaluation of contractors ensuring we work alongside suppliers with sound environmental principles and practices. Health and happiness Sickness absence levels overall have marginally increased to working days lost per person. Initiatives to reduce sickness absence levels include a review of health and wellbeing benefits available to staff and encouragement to maintain healthy lifestyles. The Human Resources team plays a key role in the support of managers managing sickness absences, return to work interviews have increased and case handling has improved. Going forwards The governance of health, safety and environment will continue to be enhanced during 2014/15 with further developments to, and efficiencies in our safety and environmental management systems. The Health, Safety and Environment team will continue to improve our performance and processes, with particular attention to risk profiling and the identification, evaluation and effective control of risks. Performance indicators will be agreed and monitored by the Health, Safety and Environment Group. Key areas will include: fire safety management, legionella control, risk assessment, infection control and environmental performance. Our comprehensive programme of training will continue to support our employees and volunteers and develop their competencies. 50 rnib.org.uk

51 Also, as the range of activities across the RNIB Group continues to expand, so too does the potential for new risks. The Health, Safety and Environment team work hard, and in close collaboration with colleagues across business, to identify these new risks and implements effective measures to reduce or eliminate their impact. In 2014/15 the Health, Safety and Environment team will continue to advance our environmental credentials, by identifying opportunities to improve our performance and explore opportunities to reduce our consumption of non-renewable resources. We plan to enhance the quality of the data we collect and roll out good practice across the RNIB Group. The team will also be promoting initiatives to improve our carbon footprint and promote recycling events. Signed on behalf of RNIB Trustees Kevin Carey, Chair 17 July 2014 RNIB Group annual report and financial statements 2013/14 51

52 Independent auditors report to the Trustees of RNIB Report on the financial statements Our opinion In our opinion the financial statements, defined below: give a true and fair view of the state of the group s and charity s affairs as at 31 March 2014 and of the group s incoming resources and application of resources, and the group s cash flows 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, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and regulation 15 of The Charities (Accounts and Reports) Regulations This opinion is to be read in the context of what we say in the remainder of this report. What we have audited The group financial statements, which are prepared by RNIB, comprise: the group and charity balance sheets as at 31 March 2014; the consolidated statement of financial activities for the year then ended; the consolidated cash flow statement for the year then ended; and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events. What an audit of financial statements involves We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) ( ISAs (UK & Ireland) ). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group s and the charity s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the RNIB Group annual report and financial statements 2013/14 (the Annual Report ) to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become 52 rnib.org.uk

53 aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Other matters on which we are required to report by exception Sufficiency of accounting records and information and explanations received Under the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 we are required to report to you if, in our opinion: we have not received all the information and explanations we require for our audit; or sufficient accounting records have not been kept by the Charity; or the charity financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. Other information in the Annual Report Under the Charities Accounts (Scotland) Regulations 2006 (as amended) and Charities Act 2011 we are required to report to you if, in our opinion the information given in the Annual Report is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility. Responsibilities for the financial statements and the audit Our responsibilities and those of the trustees As explained more fully in the Statement of Trustees responsibilities set out on page 9, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the charity s trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 144 of the Charities Act 2011 and regulations made under those Acts (regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and Regulation 30 of The Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 17 July 2014 PricewaterhouseCoopers LLP is eligible to act, and has been appointed, as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and section 144(2) of the Charities Act RNIB Group annual report and financial statements 2013/14 53

54 Consolidated statement of financial activities for the year ended 31 March 2014 Notes Unrestricted funds Restricted funds Endowment funds Total 2014 Total 2013 Incoming resources Incoming resources from generated funds Voluntary income Donations and gifts 27,107 3,752-30,859 28,774 Legacies 33,282 7,515-40,797 40,711 Total voluntary income 60,389 11,267-71,656 69,485 Activities for generating funds Merchandising and sponsorship Investment income ,056 1,311 Total incoming resources from generated funds 61,210 11,850-73,060 71,240 Incoming resources from charitable activities Stopping people losing their sight unnecessarily Supporting independent living 28,731 12,769-41,500 40,842 Creating an inclusive society 1, ,021 2,189 Total incoming resources from charitable activities ,505 13,645-44,150 43,623 Other incoming resources Other income VAT claim Other Income defined benefit pension scheme 1, , Net gain on disposal of fixed assets ,157 Total incoming resources ,152 25, , ,023 Resources expended Costs of generating funds Costs of generating voluntary income , ,705 14,361 Merchandising and sponsorship costs

55 Consolidated statement of financial activities for the year ended 31 March 2014 continued Notes Unrestricted funds Restricted funds Endowment funds Total 2014 Total 2013 Investment management costs Total costs to generate funds 1.5/6/7 15, ,848 14,531 Charitable activities Stopping people losing their sight unnecessarily 2, ,562 3,588 Supporting independent living 63,630 26, ,913 87,346 Creating an inclusive society 8, ,741 9,512 Total charitable activity costs 75,408 27, , ,446 Governance Costs 5 1, ,540 1,456 Total resources expended 1.5/6/7 92,461 28, , ,433 Net incoming (outgoing) resources before 691 (2,647) (1) (1,957) 590 transfers Transfers (609) (31) - -. Net incoming (outgoing) resources before other 1,331 (3,256) (32) (1,957) 590 recognised gains and losses Unrealised gain (loss) from revaluation of property (32) 1, held for sale Gains on investment assets ,931 Actuarial (losses) gains on defined benefit pension 22 (478) (22) 14,935 schemes Net movement in funds 12 1,632 (2,397) (64) (829) 18,456 Total funds balance brought forward at 74,038 27,732 5, ,163 88,707 1 April 2013 Total funds balance carried forward at 31 March ,670 25,335 5, , ,163 55

56 A Statement of Total Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities. Incoming resources of the Charity during the year were 106,453,000 (2013: 106,223,000) less resources expended by the Charity at 106,687,000 (2013: 105,406,000) led to a deficit of 234,000 (2013: surplus of 817,000). All incoming resources, resources expended and resulting net movements in funds are derived from continuing activities. The Isle of Man government require that we disclose the income and expenditure in the Isle of Man which amounted to 162,000 (2013: 161,000) and 188,000 (2013: 191,000) respectively. The notes that follow form part of the financial statements. 56

57 Balance sheets at 31 March 2014 Notes Group 2014 Group 2013 Charity 2014 Charity 2013 Fixed assets Tangible assets 13 76,237 79,413 62,320 63,413 Investments 14 33,833 37,857 24,644 29,293 Total fixed assets 110, ,270 86,964 92,706 Current assets Stocks and work-in-progress 15 1,010 1, ,330 Debtors: amounts falling due within one year 16 21,020 17,299 19,400 16,702 amounts falling due after one year Investments 14 1, , Short term deposits Cash at bank and in hand 2,080 2, Total current assets 25,346 22,642 23,018 19,574 Creditors: amounts falling due within one year 18 13,075 12,741 11,008 10,255 Net current assets 12,271 9,901 12,010 9,319 Total assets less current liabilities 122, ,171 98, ,025 Creditors: amounts falling due after one year 19 20,000 21,205 20,000 21,000 Net assets excluding pension asset 102, ,966 78,974 81,025 Defined benefit pension asset 22 3,993 1,197 6,482 4,395 Net assets including pension asset , ,163 85,456 85,420 57

58 Balance sheets at 31 March 2014 continued 58 Notes Group 2014 Group 2013 Charity 2014 Charity 2013 The funds of the Group/Charity: Endowment funds 20 5,329 5,393 5,328 5,392 Restricted income funds 20 25,335 27,732 4,458 5,990 Unrestricted income funds: Designated 20 46,701 48,909 46,701 48,909 General 20 22,487 20,734 22,487 20,734 Pension reserve 20/22 6,482 4,395 6,482 4,395 Total unrestricted income funds 20 75,670 74,038 75,670 74,038 Total Group/Charity funds , ,163 85,456 85,420 These financial statements were approved by the Board of Trustees on 17 July Kevin Carey, Chair Alan Tinger, Honorary Treasurer

59 Group cash flow statement for the year ended 31 March Net cash outflow from operating activities (1,964) (2,146) Returns on investments and servicing of finance Investment income 780 1,311 Interest element of finance lease rental payments and loan (1,220) (1,263) Net cash (outflow) inflow from investments and servicing of finance (440) 48 Capital expenditure and financial investment Purchase of tangible fixed assets (2,060) (2,665) Proceeds from sale of tangible fixed assets Purchase of investments (15) (8,517) Proceeds from sale of investments 4,045 8,118 Net decrease in endowment investments Proceeds from sale of property held for sale 0 2,529 Cash acquired on merger/association (20) 0 Net cash inflow from capital expenditure and financial investment 2, Net cash outflow before management of liquid resources and financing (387) (1,830) Management of liquid resources Cash deposited to short term deposits 961 2,240 Net cash from the management of liquid resources 961 2,240 Financing Net decrease in endowment investments (64) (243) Finance loan advance paid (1,203) (1,144) 59

60 Group cash flow statement for the year ended 31 March Net cash outflow from financing activities (1,267) (1,387) Decrease in cash (693) (977) Cash at 1 April ,772 3,749 Cash at 31 March ,079 2, Reconciliation of net income to net cash outflow from operating activities Net (outgoing) incoming resources before transfers (1,957) 590 Investment income (1,056) (1,311) Depreciation 3,166 3,009 Non monetary assets acquired on association (1,377) - Gifted assets Investment management fees charged to portfolio Costs on disposal of investment property deducted from transfer to current asset investments Loss (gain) on disposal of tangible fixed assets 2,086 (473) Profit on disposal of property held for sale - (955) Increase in current creditors Decrease in long term creditors (2) (8) Decrease in pension provision (2,824) (775) Interest charged on finance lease payments and loan 1,220 1,263 Increase in debtors (2,431) (4,059) Decrease in stock Net cash outflow from operating activities (1,964) (2,146)

61 31 March 2012 Cash flow 2012/13 31 March 2013 Cash flow 2013/14 31 March 2014 Analysis of change in net debt Cash at bank 3,753 (979) 2,774 (694) 2,080 Bank overdraft (4) 2 (2) 1 (1) Total cash 3,749 (977) 2,772 (693) 2,079 Debt due within one year (1,000) -. (1,000) -. (1,000) Debt due after one year (22,357) 1,152 (21,205) 1,205 (20,000) Total change in net debt (19,608) 175 (19,433) 512 (18,921) 61

62 Notes to the financial statements for the year ended 31 March Statement of accounting policies The principal accounting policies adopted in the preparation of these financial statements are as follows: 1.1 Basis of preparation The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments and properties held for sale, in accordance with applicable accounting standards in the United Kingdom and the Statement of Recommended Practice Accounting and Reporting by Charities (SORP 2005) as revised in May 2008, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations The financial statements are prepared on a going concern basis. The accounting policies have been consistently applied across the Group from year to year. 1.2 Group financial statements The results of each of RNIB s subsidiary undertakings, as listed in note 4, have been consolidated in these financial statements under the heading Group on a line-by-line basis, adopting uniform accounting policies. The term Associated Charity refers to organisations that have entered into a formal association agreement with RNIB. Their objectives contribute to those of the RNIB Group strategy and under the tests of control they are deemed to be charitable subsidiaries of RNIB. The net assets at the date of association or merger are assessed on a fair value basis for the purposes of consolidation into the results for the RNIB Group. The results of the subsidiaries acquired during the year are included in the SoFA from the effective date of acquisition. The intra-group transactions, balances and unrealised profits are eliminated in full. Any negative goodwill arising is written off in the year of acquisition and included as an incoming resource within the SoFA. Where specific assets are gifted to RNIB as part of the acquisition, these are treated as a donation and transferred to RNIB Charity. No separate SoFA has been presented for the Charity alone as permitted by paragraph 397 of the SORP.

63 1.3 Foreign currency transactions Foreign currency transactions completed within the year are included at their transacted sterling equivalents. Assets and liabilities are valued using those rates published by HM Revenue and Customs as at the balance sheet date. Any foreign exchange gains or losses are charged to the SoFA. 1.4 Fund accounting Unrestricted funds comprise accumulated surpluses and deficits on general funds that are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. Designated funds are unrestricted funds that the trustees of the Charity have set aside, out of general funds and comprise sums of money for specific projects that can either be the updating of existing, or the development and piloting of new, charitable services. Also within the designated funds are service properties and other fixed assets. Service properties represents the value of RNIB s interests in land and buildings, for the provision of services to people with sight problems. This value is shown in a separate designated fund, as the properties represented are essential for the provision of RNIB s services. Transfers in respect of additions to property in the year are made from the general fund and the development fund. Transfers are made from this fund to the general fund in respect of property disposals during the year. Property depreciation is charged to this fund. Other fixed assets represents other assets in use by RNIB. The assets of associated charities are held within the restricted funds. Restricted funds comprise income received with special conditions attached. Income for a specific purpose not spent in any year is carried forward in the relevant fund. Also within restricted funds are the results of the associated charities, which are operating under narrower objectives than those of RNIB. Endowments received are credited directly to the relevant endowment fund. Income arising from the related investments is allocated to the general fund or to the relevant restricted fund, depending on the terms of endowment. 1.5 Incoming resources Donated goods and services are included at the value to the Charity where these can be quantified. No amounts are included in these financial statements for the services donated by volunteers. Income from trading in subsidiary undertakings is transferred to the Charity by covenanting the profits of those undertakings. Donations are accounted for as soon as their amount and receipt is certain. Donations include Gift Aid based on amounts recoverable at the accounting date. Accrued income is provided for in respect of revenues that have been earned in the current financial year but are yet to be invoiced. 63

64 64 Pecuniary legacies are recognised on notification. Residuary legacies are recognised when probate is granted and there is sufficient information to value them. In practice this is usually when the assets and liabilities statement is received: they are included at 90 per cent of their valuation (to reflect the uncertainty of estate administration). Reversionary interests involving a life tenant are not recognised. We do not include any notification below 30,000 where we have yet to receive estate accounts. Investment income, interest on deposits and income in connection with services to people with sight problems is recognised on an accruals basis. Where an incoming resource is received in advance of the activity to be performed then the incoming resource is deferred and included in creditors. Income from the sale of goods is recognised when orders are fulfilled. Investment income arising on endowment funds is credited to the appropriate fund in accordance with the prescribed conditions. 1.6 Resources expended (a) Expenditure, including irrecoverable VAT, is accounted for on an accruals basis. (b) Included within charitable activity costs is an apportionment of public awareness expenditure representing the costs incurred by RNIB in educating the public to be aware of the needs of people with sight loss. (c) Support costs include both Group and corporate costs and are incurred in support of direct service expenditures. Allocation of support service costs is on a mixture of bases including a staff time-based system of apportionment. (d) Fundraising expenses include those costs incurred in raising donations and legacies. (e) Governance costs are incurred in relation to the running of the Charity and the charitable subsidiaries. This includes strategic planning and attending to the statutory affairs of the Charity and the charitable subsidiaries. (f) Grants payable are charged to the SoFA when a constructive obligation exists, that is when the recipient has been informed. 1.7 Fixed assets Tangible assets are recorded at cost, including irrecoverable VAT, or where donated, open market valuation at the time of donation. Under the transitional provisions of Financial Reporting Standard 15 (FRS15), RNIB has adopted the valuations of properties as at 31 March 1999, where known, as cost and these will not be updated. Where assets are acquired through entering into Association agreements, then the cost of these are included at their fair value as at the agreement date. Assets in the course of construction are transferred to the relevant category of asset and depreciated when practical completion is achieved. The minimum threshold for capitalisation is 2,500.

65 Depreciation is provided on all tangible fixed assets, except freehold land and assets under construction, at rates calculated to write off the cost on a straight-line basis over their expected useful lives. Where the assets have been acquired under a finance lease then depreciation, and any impairment, is provided at rates calculated to write off the cost, less estimated residual value of each asset, over the life of the primary lease. The standard rates of depreciation are as follows: Service Properties Freehold buildings Leasehold land and buildings lease longer than 50 years Leasehold land and buildings lease shorter than 50 years Machinery, vehicles and equipment Motor vehicles; fixtures and fittings; equipment Computer hardware 50 years 50 years Lease period 5 years 3 years Fixed assets are subject to review for impairment when there is an indication of a reduction in their carrying value. Any impairment is recognised in the SoFA in the year in which it occurs. 1.8 Investments Listed investments are stated at mid-market value at the balance sheet date. Investment properties are stated at market value as advised by RNIB s property advisers at the balance sheet date and this is done on an annual basis. The investment in subsidiary undertakings is at cost. The SoFA includes the net gains and losses arising on disposals and revaluations throughout the year. 65

66 1.9 Property held for sale Included within current asset investments are properties held for sale. These are properties that are actively being marketed and where there is a reasonable expectation that the sale will be completed within the next 12 months. The value of such assets is determined by the expected proceeds of the sale guided by the professional valuations received and net of estimated disposal costs. On transfer to property held for sale the unrealised gains and losses are included along with other gains and losses within the SoFA. On completion the realised gains and losses will be recognised in the incoming and outgoing resources within the SoFA Stocks Stock of finished goods held for resale is valued at the lower of cost and net realisable value. Cost is standard cost on a first-in first-out basis. Finished goods for resale comprises products suitable for use by blind and partially sighted people, Christmas cards and gifts Pension scheme For the defined benefit pension schemes of the RNIB Group, the current service costs, gains and losses on settlements and curtailments, are charged to resources expended. Similarly, pension finance costs arising from changes in the net of the interest costs and expected return on assets are charged to resources expended. Where income arises as a result of such changes this is shown in the SoFA as an other incoming resource. Actuarial gains and losses are recognised immediately in the SoFA as Actuarial gain, or loss, on Defined benefit pension scheme. The Group and Charity defined benefit pension scheme asset/liability is shown on the face of the Balance Sheet. For the defined contribution schemes of the RNIB Group the amount charged to the SoFA in respect of pension costs and other post-retirement benefits are the contributions payable in the year.

67 1.12 Leased assets Leases are regarded as finance leases where their terms transfer to the lessee substantially all of the benefits and burdens of ownership other than the right to legal title. The obligations to the lessor are shown as part of the borrowings and the rights in the corresponding assets are treated in the same way as owned fixed assets. All operating leases and rental expenses are charged to the SoFA as incurred over the term of the lease on a straight line basis Taxation RNIB is a registered charity, and as such is entitled to certain tax exemptions on income and profit from investments and surpluses on any trading activities carried out in furtherance of the Charity s primary objectives, if these profits are applied solely for charitable purposes. 67

68 2. Investment income Group 2013 Group General funds Investment income from quoted investments Bank interest receivable 2 4 Rents Restricted funds Investment income from quoted investments Bank interest receivable -. 8 Total 1,056 1,311 Details of our investment policy can be found in the financial review section of the Trustees Report.

69 3. Net assets acquired on merger/association RNIB associated with NTNM in February 2009 and the two charities have subsequently merged on 30 June The assets and liabilities in the table below are as at the date of merger and have been accounted for using the acquisition method. RNIB established a new charity, the RNIB Specialist Learning Trust, as an Academy Trust. This has resulted in the transfer of assets from Coventry City Council. NTNM RNIB Specialist Learning Trust Total 2014 Fixed assets 376 1,248 1,624 Investments Current assets Creditors amounts falling due within one year Creditors amounts falling due after one year Net assets 149 1,342 1,491 Net assets in the subsidiary 149 1,342 1,491 Fair value adjustment There were no purchase or consideration costs incurred in acquiring these net assets. The resulting negative goodwill of 1,491,000 was written off in the year and included as an incoming resource within the SoFA. 69

70 4. Net income from trading activities of subsidiary undertakings 70 A summary of the results for the year ended 31 March 2014 of the subsidiaries of RNIB operating under association agreements follows: Action CIB NTNM (to merger on 30 June 2013) RNIB Specialist Learning Trust Total 2014 associated charities Total 2013 associated charities Total incoming resources 20, ,187 23,355 23,101 Total outgoing resources (20,714) (506) (243) (927) (22,390) (23,309) Net (outgoing) incoming resources (298) 26 (23) 1, (208) before transfers Net gains on investment assets Net gains on revaluation of fixed 4, , assets Actuarial gain (loss) on defined (368) benefit pension scheme Net movement in funds 4, (23) 1,260 6, Funds brought forward 21, ,743 21,493 Funds transferred to RNIB on merger (149) -. (149) -. Funds carried forward 26, ,260 27,837 21,743

71 A summary of the net assets as at 31 March 2014 of the subsidiaries of RNIB operating under association agreements follows: Action CIB NTNM RNIB Specialist Learning Trust Total 2014 associated charities Total 2013 associated charities Fixed assets 26,949 1,901-1,220 30,070 24,569 Current assets 2, ,630 3,213 Creditors amounts falling due within 2, ,731 2,636 one year Creditors amounts falling due after one year Pension scheme liability 1, ,489 3,198 Net assets 26, ,260 27,837 21,743 Action delivers regional services in England through their Action Teams, grant funded by RNIB. Action also delivers services in the areas of work, leisure, housing, support for beneficiaries, and information and education. RNIB provides the fundraising service, with net fundraising receipts being restricted for Action. Further, RNIB has provided funding to deal with the structural deficits of Action but this funding ceased at the year end. The sum of such grants amounted to 10,640,000 in the year (2013: 11,499,000). CIB provides a wide range of services to blind and partially sighted people within Cardiff and the Vale of Glamorgan. RNIB has paid a grant to CIB in the year amounting to 121,000 (2013: 342,000). NTNM provides newspapers, magazines and information in accessible formats for people with sight problems and also people with other disabilities. RNIB provides operational funding and the fundraising service, with net fundraising receipts being restricted for NTNM. The results for NTNM are Group figures and include the results of its wholly owned subsidiary Talking Newspapers Enterprises Limited. RNIB has paid a grant to NTNM in the year amounting to 112,000 (2013: 460,000). NTNM merged with RNIB on 30 June RNIB Specialist Learning Trust is an Academy Trust which has taken responsibility for Three Spires School in Coventry in September 2013 which provides education for primary age pupils with special educational needs. No financial support was given to the Trust. The Trust s year end is 31 August and so the consolidation is on the basis of management accounts. RNIB also has five wholly owned subsidiaries. These are RNIB Enterprises Limited, RNIB Services Limited, National Library for the Blind, Blind Centre for Northern Ireland and the Glynn Vivian Home of Rest for the Blind (Glynn Vivian). 71

72 A summary of the results for the year ended 31 March 2014 of the subsidiaries of RNIB follows: 72 RNIB Enterprises Limited RNIB Services Limited National Library for the Blind Blind Centre for Northern Ireland Total incoming resources 338 5, ,698 5,315 Total outgoing resources (132) (5,056) (10) (1) (5,199) (4,689) Net incoming resources Amount gifted/covenanted to RNIB (206) (15) (189) (89) (499) (645) Net movement in funds (19) Funds brought forward Funds carried forward Total 2014 Total 2013

73 A summary of the net assets as at 31 March 2014 of the subsidiaries of RNIB follows: RNIB Enterprises Limited RNIB Services Limited National Library for the Blind Blind Centre for Northern Ireland Current assets Creditors amounts falling due within one year Net assets RNIB Enterprises Limited The trading activities include commercial sponsorship and a scheme for the recycling of toner cartridges, with the consent of RNIB. A 200,000 facility remains available to RNIB Enterprises Limited and if called upon would be made by RNIB to cover the working capital requirements. RNIB Services Limited administers RNIB s school fees. National Library for the Blind (NLB) exists as a shell charity to receive donations and legacies, which are transferred to RNIB to be ring-fenced for the RNIB National Library Service. Blind Centre for Northern Ireland (BCNI) exists as a shell charity to receive donations and legacies, which are transferred to RNIB to be ring-fenced for RNIB Northern Ireland. Glynn Vivian exists as a shell charity following the sale of the property previously owned by Glynn Vivian. RNIB is the sole corporate trustee and on the grounds of control Glynn Vivian has previously been consolidated within the financial statements of the RNIB Group. The charity is now dormant and so there is no disclosure in the tables above. Total 2014 Total

74 A summary of the results for the year ended 31 March 2014 of all RNIB subsidiaries follows: 74 Associated charities Subsidiaries Total subsidiaries 2014 Total subsidiaries 2013 Total incoming resources 23,355 5,698 29,053 28,416 Total outgoing resources (22,390) (5,199) (27,589) (27,998) Net incoming resources before transfers , Net gains on investment assets Net gains on revaluation of fixed assets 4, , Actuarial loss on defined benefit pension scheme (368) Amount gifted/covenanted to RNIB -. (499) (499) (645) Net movement in funds 6, , Funds brought forward 21, ,748 21,517 Funds transferred to RNIB on merger (149) -. (149) -. Funds carried forward 27, ,842 21,748 A summary of the net assets as at 31 March 2014 of all RNIB subsidiaries follows: Associated charities Subsidiaries Total subsidiaries 2014 Total subsidiaries 2013 Fixed assets 30, ,070 24,569 Current assets 3, ,448 4,039 Creditors amounts falling due within one year 2, ,544 3,457 Creditors amounts falling due after one year Pension scheme liability 2, ,489 3,198 Net assets 27, ,842 21,748 The total net assets of the associated charities as at 31 March 2014 amounting to 27,837,000 (2013: 21,743,000) are held within the Group restricted and endowment funds as detailed in note 20.

75 5. Governance costs Total 2014 Group Total 2013 Group Total 2014 Charity Total 2013 Charity Internal audit External audit PricewaterhouseCoopers LLP External audit other Other services PricewaterhouseCoopers LLP Legal fees Associated charities Trustees' expenses Costs incurred in running the Chairman's Office (including international activity for example World Blind Union) General costs incurred in servicing RNIB's corporate committees and the statutory affairs of the Charity Total governance costs 1,540 1,456 1,238 1,136 75

76 6. Resources expended Group Direct costs Support costs Total 2014 Total 2013 Costs of generating funds Costs of generating voluntary income 11,534 4,171 15,705 14,361 Merchandising and sponsorship costs Investment management fees Total costs to generate funds 11,657 4,191 15,848 14,531 Charitable activities Stopping people losing their sight unnecessarily 2, ,562 3,588 Supporting independent living 76,672 13,241 89,913 87,346 Creating an inclusive society 8,400 1,341 9,741 9,512 Total charitable activity costs 87,920 15, , ,446 Governance costs 531 1,009 1,540 1,456 Total resources expended 100,108 20, , ,433 76

77 7. Support costs allocation Human Resources Finance Information Technology Corporate Services Other Total 2014 Total 2013 Costs of generating funds Costs of generating voluntary ,930 4,171 4,161 income Merchandising and sponsorship costs Investment management fees Total costs to generate funds ,932 4,191 4,195 Charitable activities Stopping people losing their sight unnecessarily Supporting independent living 2,293 1,810 3,588 1,221 4,329 13,241 13,090 Creating an inclusive society ,341 1,005 Total charitable activity costs 2,583 2,026 3,938 1,262 5,487 15,296 14,816 Governance costs ,009 1,065 Total resources expended 3,051 2,510 4,520 1,357 9,058 20,496 20,076 Basis of allocation: Human resources Headcount, payslips and estimated time Finance Invoicing activity and estimated time Information and technology services Networked computers and estimated time Corporate services Ordering activity, floor space and estimated time Other (including Business planning, Group support) estimated time 77

78 8. Taxation RNIB is a registered charity and is thus exempt from tax on income and gains falling within sections of the Corporation Tax Act 2010 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charge arises in any of the non-charitable subsidiary entities included in the Group financial statements due to their policy of gifting all taxable profits to their parent each year Group employee remuneration The average monthly number of employees during the year was 2,490 (2013: 2,406), of which, the average full time equivalent was 1,978 (2013: 1,945). Total emoluments for all staff for the year amounted to 64,424,000 (2013: 62,627,000). The total emoluments are analysed as shown below: Salary costs 53,770 52,421 Employer s NI contributions 4,820 4,689 Employer s pension contributions 5,834 5,517 Total emoluments 64,424 62,627 The following numbers of employees received total emoluments within the bands shown: Between 60,001 and 70, Between 70,001 and 80, Between 80,001 and 90, Between 90,001 and 100, Between 100,001 and 110, Between 110,001 and 120, Between 130,001 and 140, Between 150,001 and 160,

79 For the one person (2013: none) in the band from 150,000 to 160,000, and ten other people (2013: three) disclosed above where the figures include a payment on the termination of employment. Included in the total emoluments figures above are payments amounting to 1,263,000 made to 112 members of staff (2013: 448,000 to 41 members of staff) on termination of employment. We have undertaken a major restructuring exercise over the past year so we are best placed to achieve the ambition in our new strategy. Also of the number of staff disclosed in the bandings table above RNIB made payments on behalf of 36 (2013: 26) employees in respect of the RNIB Retirement Benefit Scheme and the Teachers Pension Scheme, and there were payments made to 17 (2013: 10) members of staff in respect of the defined contribution element of the RNIB Retirement Benefits Pension Scheme. The total amount of employer contributions paid in respect of these employees was 374,184 (2013: 313,517). For new entrants since 1 April 2005 the RNIB Retirement Benefits Pension Scheme (RBPS) is partly defined benefit and partly defined contribution so included in the numbers reported are staff that may be within both elements of the scheme. In addition Action made payments on behalf of seven (2013: three) of its employees in respect of pension contributions totalling 44,000 (2013: 27,810). Staff are able to claim reimbursement of expenditure incurred by them in the course of undertaking business on behalf of RNIB. Expenses are claimed against a set policy and guidelines, are independently authorised and are not regarded as part of the employee s emoluments. 79

80 10. RNIB Trustees expenses and related parties transactions Many Trustees and/or their organisations bear the cost of attending meetings themselves. They receive no benefits from the Charity except as users of our services. Where expenses are claimed these are in accordance with set policy and guidelines, are independently authorised and are not regarded as emoluments. Trustees of the Charity attend many committee, sub-committee and Boards of Governors meetings, most of which are held at the Charity s London service centre. A total of 37,129 was paid to, and on behalf of, 22 Trustees of the Charity as reimbursement of travel and subsistence expenses incurred in attending these meetings (2013: 26,930 to 19 Trustees). In addition 14,684 was paid to three of the Trustees of the Charity as reimbursement of overseas travel and subsistence incurred in attending international meetings and conferences (2013: 24,054 to three Trustees). The cost of lunches and overnight stays in RNIB establishments during the meetings cost a further 2,507 (2013: 1,828). During the year RNIB paid Kevin Carey, Chair of RNIB, 24,604 (2013: 24,000) as remuneration in respect of carrying out his duty as Chair of RNIB. Included in this salary was back dated pay of 398 in respect of the staff annual pay award relating to 2012/13. These payments have been made with the consent of the Charity Commission. In addition RNIB has paid 20,100 (2013: 20,100) to HumanITy as a contribution to their secretarial and office costs in providing support to Kevin Carey in his role as the Chair of RNIB. Kevin Carey was employed as an executive director of the HumanITy organisation, during this period. Humanity also receives a management fee of US$3,400 per month from Transforming Braille Group of which RNIB has a 20 per cent share holding. Lord Low of Dalston, a Vice President of RNIB and a Trustee of Action, is President of Visionary to which grants have been paid of 18,000 (2013: 31,000). David Mann s, a Trustee of RNIB, wife is Chair of Sightlines to which RNIB paid 150 (2013: Nil). Mike Nussbaum, a Trustee of RNIB and a Trustee of Action, is a Trustee of Guide Dogs for the Blind Association from which 67,553 (2013: 53,881) has been received and 2,590 (2013: nil) has been paid. Also Guide Dogs for the Blind Association own two Action hotels where the lease is charged at a peppercorn rent. Mike is also a Trustee of National Blind Children s Society to which 22,593 (2013: 52,073) has been paid and from which 1,670 (2013: 1,576) has been received. In the year RNIB made Honoraria payments totalling 810 (2013: 364) to Ken Reid, a Trustee of RNIB, in respect the UK Vision Strategy. In addition Ken is a member of RP Fighting Blindness, formerly British Retinitis Pigmentosa Society, from which RNIB received 44 (2013: 242). Paul Ryb, a Trustee of RNIB, is a Trustee of Macular Society to which 200 (2013: 200) has been paid. 80

81 RNIB has provided funding in the sum of nil (2013: 35,000) for a Fellowship on the Clore Social Leadership Programme. The Fellow is recruited through an open application process and Eleanor Southwood, a Trustee of RNIB, was successful in securing the Fellowship on this programme. Mike Townsend, a Trustee of RNIB, is a director of the Torch Trust from which 7,009 (2013: 2,697) has been received. The Charity enters a comprehensive range of insurance policies to protect Trustees, officers and employees against losses and legal liabilities arising from neglect or default in the course of business. Total premiums for these policies amounted to 33,920 (2013: 33,920). 81

82 11. Grants payable Grants payable in the year amount to 392,000 (2013: 373,000), with eight (2013: five) grants of 5,000 or above, amounting to 165,000 (2013: 115,000). In addition, around 700 (2013: 670) small grants at an individual value of less than 5,000 were made Clore Social Leadership Programme Fellowship Daisy Consortium June Metro Athletics 6 -. Louis Braille Museum 9 -. Royal College of General Practitioners South Lincolnshire Blind Society 7 7 Vision 2020 (UK) Limited Visionary (formerly NALSVI) Waltham Forest Blind Association World Blind Union Office Sponsorship Other grants all under 5, Total grants payable

83 12. Total movement of funds in the year is stated after charging: Auditors remuneration Statutory audit fee Charity Statutory audit fee Subsidiary companies Statutory audit fee Associated charities Audit of teachers' pension scheme and other non 3 3 statutory audit work Financial advice and other services Operating lease payments other 1,542 1,450 Foreign exchange losses Depreciation charge tangible fixed assets 3,166 3,009 Profit on disposal of fixed assets Of the 62,000 (2013: 57,000) statutory audit fees payable by the associated charities 9,000 (2013: 13,000) was paid to organisations other than PricewaterhouseCoopers LLP. 83

84 13. Tangible fixed assets Group Service properties Machinery, vehicles and equipment Talking Book players Total Cost Balance 1 April ,807 9,120 1, ,877 Additions 744 1, ,060 Additions on Acquisition 1, ,249 Elimination on Disposal (3,541) (928) (1,950) (6,419) Balance 31 March ,259 9, ,767 Accumulated depreciation Balance 1 April ,708 5,806 1,950 23,464 Charge for Year 1,880 1, ,166 Elimination on Disposal (264) (886) (1,950) (3,100) Balance 31 March ,324 6, ,530 Net book value 31 March ,935 3, ,237 Net book value 31 March ,099 3, ,413 84

85 13. Tangible fixed assets Charity Service properties Machinery, vehicles and equipment Talking Book players Total Cost Balance 1 April ,021 6,319 1,950 84,290 Additions Transfer of Assets on Merger Elimination on Disposal -. (121) (1,950) (2,071) Balance 31 March ,414 6, ,289 Accumulated depreciation Balance 1 April ,351 4,576 1,950 20,877 Charge for Year 1, ,170 Transfer of Assets on Merger 12 (19) (7) Elimination on Disposal -. (121) (1,950) (2,071) Balance 31 March ,842 5, ,969 Net book value 31 March ,572 1, ,320 Net book value 31 March ,670 1, ,413 Service properties are used to provide services to blind and partially sighted people. Of the net book value of property used by the Group, 16,192,000 (2013: 16,622,000) represents leaseholds of more than 50 years whilst 548,000 (2013: 650,000) represents leaseholds of less than 50 years. A transfer has been made to the designated service properties fund in the sum of 73,000 (2013: 53,000) comprising additions of 73,000 (2013: 5,000) less nil (2013: 58,000) disposals in the year. A transfer has been made from the designated other fixed assets fund in the sum of 628,000 (2013: 824,000) comprising additions of 628,000 (2013: 838,000) less nil (2013: 14,000) disposals in the year. The net book values of fixed assets of the associated charities are held within the restricted funds as set out in note

86 14. Investments Unrestricted funds Group 2014 Group 2013 Charity 2014 Charity 2013 Quoted/Unquoted Market value at beginning of year 16,759 14,561 16,764 14,566 Acquisitions at cost 3 5, ,003 Disposals at opening market value (3,946) (3,686) (3,946) (3,686) Net gain on revaluation 2, , Market value at the end of the year 15,025 16,759 15,030 16,764 Historical cost at the end of the year 12,034 15,672 12,039 15,643 Property Market value at beginning of year 1,703 1,683 1,703 1,683 Disposals at opening market value (1,071) -. (1,071) -. Net gain on revaluation Market value at the end of the year 665 1, ,703 Historical cost at the end of the year Total market value at the end of the year 15,690 18,462 15,695 18,467 Total historical cost at the end of the year 12,034 13,423 12,039 16,243 86

87 Restricted funds Group 2014 Group 2013 Charity 2014 Charity 2013 Quoted/Unquoted Market value at beginning of year 14,002 12,507 5,434 4,927 Acquisitions at cost Disposals at opening market value (13) (109) Net (loss) gain on revaluation (1,440) 1,333 (1,813) 507 Market value at the end of the year 12,814 14,002 3,621 5,434 Historical cost at the end of the year 13,381 13,094 4,780 4,780 Endowment funds Group 2014 Group 2013 Charity 2014 Charity 2013 Quoted Market value at beginning of year 5,393 5,636 5,392 5,635 Acquisitions at cost Disposals at opening market value (29) (799) (29) (799) Net (loss) gain on revaluation (35) 451 (35) 451 Market value at the end of the year 5,329 5,393 5,328 5,392 Historical cost at the end of the year 4,775 4,695 4,774 4,694 87

88 Group 2014 Group 2013 Charity 2014 Charity 2013 Unrestricted funds Quoted 15,690 18,462 15,690 18,462 Unrestricted funds Unquoted Restricted funds 12,814 14,002 3,621 5,434 Endowment funds 5,329 5,393 5,328 5,392 Total market value of investments at end of year 33,833 37,857 24,644 29, The market value of investments is further broken down as follows: Group 2014 Group 2013 Charity 2014 Charity 2013 Unrestricted funds UK Quoted 15,025 16,759 15,025 16,759 Unrestricted funds UK Unquoted Unrestricted funds UK Property 665 1, ,703 Restricted funds UK Quoted 12,814 13,998 3,621 5,434 Restricted funds Overseas Quoted Endowment funds UK Quoted 5,329 5,393 5,328 5,392 Total market value of investments at end of year 33,833 37,857 24,644 29,293 The trustees believe that the carrying value of the investments is supported by their underlying assets.

89 Significant holdings Within the portfolio of quoted investments, the following holdings for the RNIB Group exceed five per cent of the total market value of the fund: % % Unrestricted funds L&G Ethical Trust (Distribution Units) 4, , Unrestricted funds L&G Cash Trust (Accumulation Units) 7, , Unrestricted funds F&C Ethical Bond Share Class 2 6, , Restricted funds CAF UK Equities fund , Restricted funds L&G Fixed Interest Trust , Endowment funds F&C Ethical Bond Share Class 2 (Emma Nye Fund) 2, , In addition the Charity investments also include the following nominal holdings in subsidiary undertakings. The subsidiaries are all based within the United Kingdom and their accounting year ends are 31 March. Subsidiary undertakings with a share capital Registered in Capital held % Number of 1 ordinary shares held RNIB Enterprises Limited England and Wales 100 5,000 RNIB Services Limited England and Wales Inosight Limited England and Wales 33 1 Transforming Braille Group LLC USA 20 5 ownership units Total direct 5,002 Action for Blind People Activities Limited England and Wales Talking Newspapers Enterprises Limited England and Wales Total indirect

90 In September 2011 RNIB formed a new trading subsidiary, registered in England and Wales, Inosight Limited (Company number: ). On 2 May 2012 it was resolved that RNIB be allotted the sole class A share and therefore on the grounds of control the results should be consolidated within the financial statements of RNIB at 31 March However, the results of Inosight are not material to the Group and on this basis have been excluded from the consolidation. The company is now in the process of being wound up. RNIB is the sole corporate member of the following organisations which, all bar the Glynn Vivian Home of Rest for the Blind, are limited by guarantee with no shares in issue: Subsidiary undertakings limited by guarantee Registered in Company number Charity number Charity number Scotland Action England and Wales SC CIB England and Wales NTNM England and Wales BCNI Northern Ireland NI XN NLB England and Wales Glynn Vivian England and Wales RNIB Specialist Learning Trust England and Wales Exempt Charity - 90 RNIB has an indirect holding in the following organisations, through Action, which are both limited by guarantee with no shares in issue: Subsidiary undertakings limited by guarantee Registered in Company number Charity number The Blind Society for England and Wales North Tyneside Limited Staffordshire Blind England and Wales

91 In addition to the fixed asset investments there are also some donated investments held by the Charity, which because of their nature are included within current assets. Current Asset Investments (including property held for sale) Group 2014 Group 2013 Charity 2014 Charity 2013 Property held for sale Market value at beginning of year -. 1, ,704 Transfers from fixed assets to property held for 1, ,236 sale Transfers to fixed assets from property held for -. (480) -. (480) sale Disposals of property held for sale -. (1,224) -. (1,224) Market value at the end of the year 1, , Historical cost at the end of the year The transfer in respect of property in 2014 relates to four properties in Condover, Shropshire which are in the process of being sold. The transfer in respect of land in Peterborough has been reversed in 2013 as there was no interest shown. 91

92 Group 2014 Group 2013 Charity 2014 Charity 2013 Restricted funds Property held for sale Market value at beginning of year Disposals of property held for sale - (350) - (350) Market value at the end of the year Historical cost at the end of the year Group 2014 Group 2013 Charity 2014 Unrestricted funds 1,236-1,236 - Restricted funds Total market value of current asset investments 1,236-1,236 - at end of year Total Historical cost at the end of the year Charity Stocks and Work-in-Progress Group 2014 Group 2013 Charity 2014 Charity 2013 Finished goods for resale 762 1, ,071 Raw materials and consumables Total 1,010 1, ,330

93 16. Debtors amounts falling due within one year Group 2014 Group 2013 Charity 2014 Charity 2013 Trade debtors 3,780 3,385 2,902 2,378 Amounts owed by Group undertakings , Other debtors 2,168 1, ,631 Legacy accrued income 12,763 10,247 12,763 10,247 Prepayments and accrued income 2,309 1,888 1,624 1,466 Total 21,020 17,299 19,400 16,702 The Group and Charity has been notified of further legacies amounting to 7,464,000 (2013: 7,160,000), which have not been recognised as income at 31 March 2014 because the conditions of the accounting policy for legacies have not been met. When these conditions are met these amounts will be included in future periods. 17. Debtors amounts falling due after one year Group 2014 Group 2013 Charity 2014 Charity 2013 Amounts owed by Group undertakings Other debtors Total

94 18. Creditors amounts falling due within one year 94 Group 2014 Group 2013 Charity 2014 Charity 2013 Trade creditors 2,696 1,974 2,479 1,568 Bank overdraft Net obligations under loan 1,000 1,000 1,000 1,000 Net obligations under finance leases Taxes and social security costs 1,447 1,546 1,131 1,159 Amounts owed to Group undertakings Other creditors 1,530 1,427 1,344 1,247 Accruals 5,228 5,178 4,365 4,491 Deferred income all utilised in the year 1,173 1, Total 13,075 12,741 11,008 10, Creditors amounts falling due after more than one year Group 2014 Group 2013 Charity 2014 Charity 2013 Net obligations under bank loan is payable as follows Between one and two years 1,000 1,020 1,000 1,000 Between two and five years 3,000 3,031 3,000 3,000 More than five years 16,000 17,154 16,000 17,000 Total 20,000 21,205 20,000 21,000

95 In 2011/12 RNIB exercised its option to convert a three-year revolving loan agreement with the AIB Group (UK) plc to finance the redevelopment known as the RNIB Pears Centre for Specialist Learning in Coventry into a 23-year mortgage secured over the freehold property at Coventry. At 31 March 2014 the amount owing on the loan is 21,000,000 (2013: 22,000,000). Interest is charged on the loan at 0.65 per cent above the three-month LIBOR rate. RNIB has entered into a swap with AIB under which for the period 30 December 2011 to 31 December 2026 the interest charged on the outstanding amount of the loan, less 500,000, is at a fixed rate of 5.05 per cent. Under the terms of the mortgage RNIB undertakes to maintain the aggregate of Designated and General Reserves at a level 25 per cent above the amount outstanding at any time. At 31 March 2014, with the amount outstanding at 21,000,000 (2013: 22,000,000) the level of such reserves has to exceed 26,250,000 (2013: 27,500,000) and the actual level of such reserves stands at 83,059,000 (2013: 82,404,000). The 250,000 loan from Unity Trust Bank plc provided to NTNM, secured by a first charge on their National Recording Centre was paid in full on 28 June

96 20. Group/Charity statement of funds 96 Designated 31 March 2013 Incoming resources Outgoing resources Transfers Gains (losses) 31 March 2014 Investment fund 3, ,250 1,621-3,183 Mergers fund 1, ,173 Service property and associated facilities development Operational equipment fund 1, Information technology infrastructure fund Repairs and maintenance fund Net book value Service properties 39, ,480 1,073-39,572 Net book value Other fixed assets 1, ,748 Total designated Group and Charity 48, ,180 4,568-46,701 Investment fund: The purpose is to fund major projects furthering the strategic business plan. The transfer represents new designations of 1,640,000 in relation to a restructure which is offset by a transfer to general funds relating to unspent amounts on closed projects of 19,000. Mergers fund: This fund is designed to meet the costs of transition and future development of services relating to organisations that have merged with RNIB. The transfer represents new designations of 108,000 relating to the Reading Business Systems project and by other transfers of 20,000 in respect of Eye Clinic Liaison Officers in Northern Ireland. Service property and associated facilities development fund: The purpose is to fund capital building projects. Operational equipment fund: The purpose is to fund planned capital acquisitions. The 64,000 transfer represents a 534,000 designation from the general fund for general capital acquisitions and the transfer to other funds of 134,000 offset by the acquisition of fixed assets in the sum of 336,000. Information technology infrastructure fund: The purpose is to ensure that the information technology infrastructure is robust. The 139,000 transfer represents a planned designation of 250,000 towards the fund as well as a net transfer from other funds of 134,000 offset by the acquisition of fixed assets in the sum of 245,000.

97 Repairs and maintenance fund: The purpose is to fund a rolling programme of regular property maintenance. The 915,000 transfer represents new designations of 982,000 to cover planned expenditure within this programme offset by the acquisition of fixed assets in the sum of 67,000. Net book value service properties: The purpose is to recognise the value, net of long term debt, of RNIB s service properties that are unavailable to free reserves. Such fixed asset properties held in the associated charities are recognised within the restricted funds. The transfer comprises 73,000 of other additions offset by a reduction in the long term debt of 1,000,000 relating to the loan repayment regarding the redevelopment at the RNIB Pears Centre for Specialist Learning. Net book value other fixed assets: The purpose is to recognise the value, net of long term debt, of RNIB s other fixed assets that are unavailable to free reserves. Such other fixed assets held in the associated charities are recognised within the restricted funds. The transfer comprises additions amounting to 628,000. Other unrestricted 31 March 2013 Incoming resources Outgoing resources Transfers Gains (losses) 31 March 2014 General Charity 20,734 91,152 86,250 (3,928) ,487 Pension reserve 4,395 1,434 (1,131) -. (478) 6,482 Total other unrestricted 25,129 92,586 85,119 (3,928) ,969 RNIB Enterprises Limited RNIB Services Limited National Library for the Blind Blind Centre for Northern Ireland Total unrestricted Charity and Group 74,038 93,152 92, ,670 97

98 Restricted 31 March 2013 Incoming resources Outgoing resources Transfers Gains (losses) March 2014 Emma Nye fund welfare pensions Dr Duncan Leeds Bequest Elizabeth Eagle-Bott Memorial Fund Donations for specified services and 3,512 11,909 12, ,899 equipment Action Glynn Vivian 1, (643) Sub total 5,684 12,165 13,178 (609) 1 4,063

99 31 March 2013 Incoming resources Outgoing resources Transfers Gains (losses) 31 March 2014 Fund and/or purpose b/f 5,684 12,165 13,178 (609) 1 4,063 Big Lottery Fund AdvantAGE Programme Wales Eye Patient Advocacy Service Empowering Young People Programme Realise Energy Efficient Venues Programme Safe and Well Programme, Lisburn in Focus Research Programme: ENABLER Silver Dreams Programme: OPTiC (Older People Taking Control) Connecting Older People: Looking Forward Bright New Futures Future In Sights Reaching Communities Talk and Support: Supporting our Volunteers through Mentoring Sub total 5,909 12,990 13,954 (609) 1 4,337 99

100 31 March 2013 Incoming resources Outgoing resources Transfers Gains (losses) 31 March 2014 Fund and/or purpose b/f 5,909 12,990 13,954 (609) 1 4,337 Trainee Grade Scheme: Extending the (1) Reach Arts Council England Opening Up Creative Culture Awards for All Connecting Communities Creative Scotland Public Engagement Fund The Arts Gallery (4) Heritage Lottery Fund A Sense of the Past All Our Stories Programme Insight into the Past Museums In Focus Culture Link South East Big Lottery Fund Young Start Programme: Education, Respect and Awareness Sub total 5,932 13,178 14,085 (609) 1 4,

101 31 March 2013 Incoming resources Outgoing resources Transfers Gains (losses) 31 March 2014 Fund and/or purpose b/f 5,932 13,178 14,085 (609) 1 4,417 Department of Health Electronic Certificate of Visual Impairment Communicating for Efficiency and Effectiveness Bradford Community Engagement Project SEARCH Finding Your Feet Next Steps 6 (2) Opportunities for Volunteering 7 (7) Total restricted Charity 5,990 13,463 14,387 (609) 1 4,458 Action 21,275 9,326 12, ,053 CIB NTNM RNIB Specialist Learning Trust -. 2, ,260 Total restricted Group and Charity 27,732 25,495 28,142 (609) ,335 Restricted fund balances may be in a deficit situation pending future receipts where such funding is given on a reclaim basis and at 31 March 2014 such deficit balances amounted to 36,000 (2013: 173,000), which lies within Donations for specified services and equipment and Creative Scotland Public Engagement Fund The Arts Gallery. 101

102 The amounts included within Group represent the net assets at fair value of the associated charities, other than those held within endowment funds. 31 March 2013 Incoming resources Outgoing resources Transfers Gains (losses) March 2014 Sunshine (31) Emma Nye 2, (90) 2,899 Bristol Blind Fund (58) 105 Eagle-Bott Memorial (36) 628 Dr Duncan Leeds Bequest 1, ,177 GDC Rushton Total endowment Charity 5,392-1 (31) (32) 5,328 CIB Total endowment Group and Charity 5,393-1 (31) (32) 5,329 We apply a total return approach to The Sunshine Endowment Fund. In the year this resulted in the release of the unapplied total return amounting to 31,000 to general funds. Within the balance at 31 March 2014, the value of the gift element of the permanent endowment was 323,000 (2013: 323,000) and the unapplied total return was 27,000 (2013: 51,000).

103 Summary 31 March 2013 Incoming resources Outgoing resources Transfers Gains (losses) 31 March 2014 Charity Unrestricted 74,038 92,990 92, ,670 Restricted 5,990 13,463 14,387 (609) 1 4,458 Endowment 5, (31) (32) 5,328 Total 85, , , ,456 Group Unrestricted 74,038 93,152 92, ,670 Restricted 27,732 25,495 28,142 (609) ,335 Endowment 5, (31) (32) 5,329 Total 107, , , , ,

104 21. Analysis of net assets between funds 104 Group fund balances are represented by: Unrestricted funds Restricted funds Endowment funds Total funds 2014 Total funds 2013 Tangible fixed assets 62,320 13, ,237 79,413 Investments 15,695 12,809 5,329 33,833 37,857 Net current assets 11,173 1, ,271 9,901 Long-term liabilities (20,000) (20,000) (21,205) Defined Benefit Pension Scheme asset 6,482 (2,489) -. 3,993 1,197 (liability) Total net assets 75,670 25,335 5, , ,163 Charity fund balances are represented by: Unrestricted funds Restricted funds Endowment funds Total funds 2014 Total funds 2013 Tangible fixed assets 62, ,320 63,413 Investments 15,695 3,621 5,328 24,644 29,293 Net current assets 11, ,010 9,319 Long-term liabilities (20,000) (20,000) (21,000) Defined Benefit Pension Scheme asset 6, ,482 4,395 Total net assets 75,670 4,458 5,328 85,456 85,420

105 22. Pension costs The RNIB Group pension arrangements comprise those of RNIB and the associated charities, Action and CIB. A summary of the movement in pension assets and liabilities for the Group s defined benefit pension funds is shown below: Amounts charged to SoFA Actuarial (losses) gains Defined Benefit Pension Scheme asset (liability) RNIB Charity 2,313 (478) 6,482 Action schemes one and three (1,774) CIB (715) Total defined benefit schemes 2,415 (22) 3,993 RNIB The RNIB Retirement Benefits Pension Scheme (RBPS) is partly defined benefit and partly defined contribution. Members joining before 1 April 2005 are wholly defined benefit, with those members joining after, having a hybrid of defined benefit and defined contribution. The assets of the Scheme are held in a separate fund, under control of its trustees, to which RNIB has no access. A salary sacrifice arrangement was introduced 1 July 2010 whereby the member s salary is reduced by the amount of the member contribution and in return the employer makes an equivalent contribution to the Scheme. An actuarial valuation was carried out at 31 March 2012 by the Scheme s actuaries Aon Hewitt, using the projected unit method. The valuation disclosed that the market value of the Scheme s assets (excluding Voluntary Contributions) at that date was 149million, and that there was a deficit (calculated as the excess of the market value of the Scheme s assets to the value of its past service ongoing liabilities, with allowance for future pay increases) of 10.1million. Contributions by RNIB on the defined benefit element of the scheme increased to 12.9 per cent of pensionable salaries. In addition RNIB and Action share the administrative costs of the Scheme. As a part of the recovery plan RNIB agreed to make additional contributions of 828,000 a year until 30 June The pension scheme Trustees have considered whether the measure used for inflation linked increases should be based on CPI rather than RPI. Given the scheme rules, it has been decided to continue to use RPI. 105

106 Following the merger with NLB, RNIB also offers the Pensions Trust s Growth Plan. The Growth Plan is a multi employer pension plan under which contributions are invested in personal funds which have a capital guarantee and convert to a pension on retirement. No contributions are currently required into the Plan, but the Pensions Trust has advised that in the event of a withdrawal from the Plan, or in the event of the Pensions Trust being wound up, RNIB would have liability to pay a share of the accumulated deficit in the Plan, which is estimated at 748,000 based on the valuation of the Plan as at 30 September The next full actuarial valuation will be carried out during RNIB also participates in the Teachers Pension Scheme, a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers Pension Scheme is an unfunded scheme. Contributions on a pay as you go basis are credited to The Exchequer under arrangements governed by The Superannuation Act Action Action participates in five pension schemes and the assets of all the schemes are held separately from those of the Charity. Scheme number one is the Action Defined Benefit Scheme which was offered through the Pensions Trust. The scheme has been closed to new members since 1 October Scheme number two is the Action for Blind People money purchase scheme and is open to existing and new employees. It is currently substantially all invested in the Pensions Trust Growth Series 3 Scheme. Due to its capital guarantee, this scheme differs in some important respects from a standard Defined Contribution Scheme, and following legislation in 2011 is now classified legally as a Defined Benefit Scheme. Action is unable to identify, on a reasonable and consistent basis, its share of the underlying assets because the Pensions Trust does not provide such information as this is unavailable on a disaggregated basis. Accordingly due to the nature of the Scheme, Action has accounted for contributions as if the scheme were a Defined Contribution Scheme. Members contributions are not fixed, employees are able to make contributions up to 10 per cent of their salaries. Scheme number three is a defined benefit scheme operated by Wiltshire County Council and related to staff transferred from Shelwork Industries on 1 April The Shelwork factory operation has ceased trading and therefore the majority of the members of the scheme are no longer employees of Action. 106

107 Scheme number four is the RNIB Retirement Benefits Pension Scheme of which Action became an Employer on 1 April 2009 pursuant to the Transfer of Undertakings Agreement whereby 118 scheme members transferred by TUPE to Action. With regard to Action it closed to new members with immediate effect from 1 April Under the Association Agreement with RNIB, the deficit on the scheme disclosed by the Triennial Actuarial Valuation at 31 March is the responsibility of RNIB. The FRS17 review of the whole scheme at 31 March 2014 produced a surplus of which 22,000 (2013: 15,000) is attributable to Action. Action also participates in the Teachers Pension Scheme, a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers Pension Scheme is an unfunded scheme. Contributions on a pay as you go basis are credited to the Exchequer under arrangements governed by the Superannuation Act CIB CIB is a participant within the defined benefit scheme Cardiff and Vale of Glamorgan Pension Fund which is part of the Local Government Pension Scheme. RNIB Specialist Learning Trust RNIB Specialist Learning Trust is a participant within the defined benefit scheme West Midlands Pension Fund which is part of the Local Government Pension Scheme. RNIB Specialist Learning Trust also participates in the Teachers Pension Scheme, a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers Pension Scheme is an unfunded scheme. Contributions on a Pay as you go basis are credited to The Exchequer under arrangements governed by The Superannuation Act

108 The following tables, and narrative, provide the detailed disclosures that relate to the RNIB Retirement Benefit Scheme. The column headed Associated charities refers to Action s schemes one and three, together with that for CIB. Together these explain the Group s pension costs. b. Scheme assets and liabilities Expected asset return % p.a. RNIB Expected asset return % p.a. Associated charities 2014 Scheme assets at fair value Equities , , ,832 Corporate and Other Bonds , ,105 21,616 Fixed Interest Gilts Index-linked Gilts , ,464 Property (including unit trusts) , ,086 15,171 Cash and Other (including net , ,508 current assets) Total market value of Scheme assets ,757-14, ,671 Present value of Scheme liabilities - (169,275) - (17,403) (186,678) Net Pension Scheme asset (liability) - 6,482 - (2,489) 3,993 Total 108

109 b. Scheme assets and liabilities Expected asset return % p.a. RNIB Expected asset return % p.a. Associated charities 2013 Scheme assets at fair value Equities , , ,361 Corporate and Other Bonds , ,490 19,743 Fixed Interest Gilts Index-linked Gilts , ,312 Property (including unit trusts) , ,809 Cash and Other (including net , ,179 current assets) Total market value of Scheme assets , , ,484 Present value of Scheme liabilities (160,826) (17,461) (178,287) Net Pension Scheme asset (liability) 4,395 (3,198) 1,197 The assets of the RNIB Scheme are held with Legal and General plus BlackRock (for equities, bonds and properties), The defined benefit assets are invested according to the Statement of Investment Principles agreed by the Scheme Trustees. This sets a benchmark allocation of assets. The defined contribution assets are invested in line with member instructions. RNIB employs a building block approach in determining the long-term rate of return on pension plan assets. Historical markets are studied and assets with higher volatility are assumed to generate higher returns consistent with widely accepted capital market principles. Total 109

110 c. Analysis of charge to the SoFA RNIB Associated charities Total Year to 31 March 2014 Current service cost 3, ,921 Interest cost 7, ,969 Expected return on Scheme assets (8,643) (832) (9,475) Expense recognised in SoFA 2, ,415 Year to 31 March 2013 Current service cost 4, ,222 Interest cost 7, ,379 Expected return on Scheme assets (7,390) (795) (8,185) Expense recognised in SoFA 4, , The above service cost excludes any RNIB contributions paid to the defined contributions section of the Scheme. The Charity contributed to the Scheme at the rate of 12.9 per cent of pensionable salaries. These rates include the cost of death in service insurance cover. During the year the Charity contributed 4,878,000 (2013: 4,922,000) to the Scheme, and in the next year the Charity expects to contribute 4,750,000. In addition RNIB and Action share the administrative costs of the Scheme. In 2010, as a part of the recovery plan it was agreed that RNIB would make additional annual contributions of 1million over 17 years, and these contributions are included in the amounts that the Charity contributed to the Scheme, referred to above. From 1 April 2013 these additional contributions reduced to 828,000 per year until 30 June From 1 July 2010 under the RNIB salary sacrifice arrangement employer contributions and service cost include the member salary sacrifice contributions while member contributions are shown as nil. RNIB also makes contributions to a number of other pension schemes including the Teachers Pension Scheme. The Teachers Pension Scheme is a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers Pension Scheme is an unfunded scheme. Contributions on a pay-as-you-go basis are credited to the Exchequer under arrangements governed by the Superannuation Act RNIB made contributions to the Teachers Pension Scheme for 30 employees (2013: 27) totalling 123,000 (2013: 123,000). In addition Action made contributions for two employees totalling 13,000 (2013: two employees totalling 13,000) to the Teacher s Pension Scheme.

111 d. Analysis of actuarial gains and losses RNIB Associated charities Total Year to 31 March 2014 Experience gains on scheme assets 2, ,114 Experience gains on scheme liabilities (Losses) gains on scheme liabilities arising out of (3,233) 226 (3,007) changes to the actuarial assumptions used Total actuarial (loss) gain (478) 456 (22) Year to 31 March 2013 Experience gains on scheme assets 8, ,866 Experience gains (losses) on scheme liabilities 1,990 (65) 1,925 Gains (losses) on scheme liabilities arising out of 5,203 (1,059) 4,144 changes to the actuarial assumptions used Total actuarial gain (loss) 15,303 (368) 14,

112 112 In accordance with the requirements of FRS17 the full actuarial valuation at 31 March 2009 was updated by Aon Hewitt at 31 March The principal assumptions they used for this purpose are summarised in the following table. e. Actuarial assumptions 2014 RNIB 2013 RNIB 2014 Associated charities % 2013 Associated charities % % % Discount rate Inflation assumption (RPI) Inflation assumption (CPI) Rate of increase in salaries Rate of increase in pensions payments Pre 1 July % p.a. cap Post 30 June % p.a. cap Rate of increase in deferred pensions Pre 1 July % p.a. cap Post 30 June % p.a. cap Expected rate of return on scheme assets For the RNIB scheme the mortality assumptions are based on standard mortality tables which allow for future mortality improvements. The assumptions are that a member currently aged 60 will live on average for a further 27.6 years if they are male and for a further 29.7 years if they are female. For a member who retires in 2033 at age 60 the assumptions are that they will live on average for a further 28.6 years after retirement if they are male and for a further 31.5 years after retirement if they are female, as last year. For schemes offered by the Associated Charities, for current Pensioners, their life expectancy beyond the pensionable age of 65 ranges between 22.3 to 23.7 years if they are male, and 24.5 to 26.6 years if they are female. For future Pensioners their life expectancy beyond the pensionable age of 65 ranges between 24.3 to 25.7 years if they are male and 26.9 to 28.9 years if they are female.

113 f. Changes to the present value of the defined benefit obligation RNIB Associated charities Total As at 1 April ,533 15, ,518 Current service cost 4, ,222 Interest cost 7, ,379 Contributions by scheme participants Actuarial (loss) gain on scheme liabilities (7,193) 1,124 (6,069) Net benefits paid out (4,349) (604) (4,953) As at 31 March ,826 17, ,287 Current service cost 3, ,921 Interest cost 7, ,969 Contributions by scheme participants Actuarial gain (loss) on scheme liabilities 2,526 (390) 2,136 Net benefits paid out (5,182) (627) (5,809) As at 31 March ,275 17, ,

114 g. Changes to the fair value of scheme assets during the year RNIB Associated charities Total As at 1 April ,987 13, ,005 Expected return on scheme assets 7, ,185 Contributions by the employer 4, ,191 Contributions by scheme participants Actuarial gain on scheme assets 8, ,866 Net benefits paid out (4,349) (604) (4,953) As at 31 March ,221 14, ,484 Expected return on scheme assets 8, ,475 Contributions by the employer 4, ,233 Contributions by scheme participants Actuarial gain on scheme assets 2, ,114 Net benefits paid out (5,182) (627) (5,809) As at 31 March ,757 14, ,671 Actual return on scheme assets ,500 1,551 17, , ,

115 h. Historical scheme information RNIB Fair value of scheme assets 175, , , , ,067 Defined benefit obligation (169,275) (160,826) (160,533) (134,869) (135,231) Surplus (deficit) in the scheme 6,482 4,395 (11,546) 1,723 (9,164) Gain on scheme assets 2,048 8,110 3,405 1,318 25,208 (Loss) gain on scheme liabilities (2,526) 7,193 (18,865) 7,804 (26,751) Total actuarial (loss) gain in year (478) 15,303 (15,460) 9,122 (1,543) Cumulative amount of loss recognised in SoFA (8,948) (8,470) (23,773) (8,313) (17,435) Associated charities Fair value of scheme assets 14,914 14,263 13,018 12,880 12,143 Defined benefit obligation (17,403) (17,461) (15,985) (15,194) (16,195) Deficit in the scheme (2,489) (3,198) (2,967) (2,314) (4,052) Gain (loss) on scheme assets (402) 156 2,288 Gain (loss) on scheme liabilities 390 (1,124) (413) 1,034 (3,856) Total actuarial gain (loss) in year 456 (368) (815) 1,190 (1,568) Cumulative amount of loss recognised in SoFA (2,700) (3,156) (2,788) (1,973) (3,163) The historical scheme information under Associated charities for 2009 excludes some information relating to CIB as this was not available. 115

116 23. Group commitments a. Capital At the year-end, RNIB has no outstanding commitments (2013: nil). At the year-end Action has outstanding commitments amounting to 244,200 (2013: 84,800). At the year-end no other associate or subsidiary entities have any outstanding commitments (2013: nil). b. Operating leases At the year-end, the Group had the following annual commitments amounting to 1,450,000 (2013: 1,503,000) under noncancellable operating leases Land and buildings Expiring within one year Expiring between two and five years Expiring after five years Vehicles Expiring within one year Expiring between two and five years Equipment Expiring within one year Expiring between two and five years Total 1,450 1, Contingent liabilities As at 31 March 2014 other than the Pensions Trust Growth Plan contingent liability disclosed in the Pension costs note (note 22) there is a liability in respect of CIB relating to the Cardiff and Vale County Council Pension Scheme additional employers contributions amounting to 65,700 (2013: 62,800).

117 25. Grants receivable During the year, RNIB received a number of grants and other funding resources, which are required by the donors to be shown in our annual financial statements. Source Purpose Big Lottery Fund AdvantAGE Wales Eye Patient Advocacy Service 118 Bright New Futures: Future In-Sights 148 Connecting Older People: Looking Forward 114 Empowering Young People Programme: Realise 101 Safe and Well Programme: Lisburn in Focus Northern Ireland 163 Silver Dreams Programme: Older People Taking Control (OPTiC) 146 Young Start Programme: Education, Respect and Awareness 26 Big Lottery Fund Reaching Communities Talk and Support: Supporting our Volunteers through Mentoring 35 Trainee Grade Scheme: Extending the Reach 89 Heritage Lottery Fund A Sense of the Past Northern Ireland 3 CultureLink South East 39 Museums in Focus 18 European Social Fund Eye Work 158 Special EU Programmes Sensory Engagement Programme 608 European Union (Lifelong Learning) VISAL 13 Agnes Hunter Trust Insight Radio Social Action Development Manager 5 Aierdale Clinical Commissioning Group Living Well with Diabetes Folder 20 Alcon Eye Health Projects 54 Glaucoma Alliance networking meetings 4 Vision Conference 5 Allergan Eye Health Projects 49 Arts Council England Grants for the Arts Programme: Opening Up Creative Culture 5 Awards for All Connecting Communities 8 B & P Glasser CT General support 5 117

118 Source Purpose Bausch & Lomb Eye Health Projects 15 Vision Conference 7 Bayer Economic research on the impact of Eye Clinic Liaison Officers 99 Eye Health Projects 152 Vision Conference 15 Bòrd na Gàidhlig Taic Freumhan Gaelic Transcription 4 Coimhearsnachd Bradford Clinical Commissioning Group Living Well with Diabetes Folder 80 BBC Children in Need Building parent and peer support for blind and partially sighted 40 children Brian Mercer CT Children's Giant Print 15 Brownlie CT General support Scotland 10 Carmen Butler Charteris CT General support 35 Cecil Rosen Foundation RNIB Research Library 10 Children & Young People's Strategic Family support 64 Partnership, Health and Social Care Board Parenting education 11 Constance Travis CT Children's Giant Print 5 General support 6 Craig McTurk Endowment Trust General support Scotland 8 DCELLS The Production of Welsh Language Curriculum Materials in 40 Multi-media Format Department of Health (Innovation, Bradford Community Engagement Project 70 Excellence and Strategic Development) Commissioning for Effectiveness and Efficiency 86 Electronic Certification of Visual Impairment 62 Search Project 76 Department of Social Development Campaigner s Active Network 36 Derry City Council Sensory Engagement Project 4 Diana & Gerard Young Trust Talking Books

119 Source Purpose Donald Randle CT General support 5 Dundee Reshaping Care for Older People: Capacity Dundee Carers Champions 9 Building Fund Education Funding Agency Capital Grant for RNIB College Loughborough 6 Glasgow Transformation Fund Looking Forward HMRC Right First Time Project 71 Targeted tax help for people with sight loss 40 Health and Social Care Board SLCG Family support in the Southern area 24 Parenting education in the Southern area 22 Heath CT General support 13 John Atcheson Foundation A Sense of the Past 8 Education and Awareness Pilot 4 John Scott CT Technology Lend Library 5 Kathleen Beryl Sleigh CT General support 7 Liz & Terry Bramhall Foundation Children's Giant Print 5 Miss Elizabeth T Robertson's CT General support 8 Novartis Pharmaceuticals UK Ltd Device Research Project 70 Eye Health Projects 86 Vision Conference 10 Pom Charity Trust Activity Weeks R S Macdonald CT Technology Lend Library 12 Ranmoor CT Talking Books 10 Scottish Government 16b Fund Insight to Health 16 Scottish Government Autism Strategy Fund Autism Champions 51 Scottish Government Self Directed Support Fund Self Directed Support 78 Scottish Government Sensory Impairment Bridge to Vision Dementia Project 52 Strategy Fund Scottish Natural Heritage Natural Project Grant Insight Outdoors

120 Source Purpose Shared Care Scotland Better Breaks Fund RNIB Activate Smith CT General support 8 St Peter's Relief in Sickness Fund General support 5 State Street Community Support Programme Provide non residential courses to blind and partially sighted 18 jobseekers across Scotland Ulverscroft Foundation Talking Book CD burners 5 WT Mattock CS Talking Books 10 Wales Council for Voluntary Action The Engagement Gateway 16 (Part funded by Welsh Government) Transcription Centre Volunteering Opportunities 10 Welsh Assembly Government Children's and Family Organisation Grants (CFOG) 47 S64 North Wales Partnership and Development 29 Welsh Assembly Government Communities 2.0 Get Connected Digital Inclusion for Blind and Partially 114 Sighted People Youth Council Northern Ireland Work It Out 10 Policy on relationships with pharmaceutical companies RNIB provides services to those with sight problems, works to prevent avoidable blindness, and campaigns for positive change. These functions will not be influenced in any way by our relationship with pharmaceutical companies or by acceptance of grants or sponsorships from them. We will withdraw from any initiative that jeopardises our independence. RNIB will not embark on, or continue with, any sponsorship arrangement or collaborative venture which might damage its independence. Alcon, Allergan, Bayer and Novartis Pharmaceuticals UK Ltd are all pharmaceutical companies. 120

121 RNIB Acknowledges support from Department for Employment and Learning NI and European Union European Social Fund for Eye Work Voluntary Action Fund and Glasgow Third Sector for Looking Forward 2012 Shared Care Scotland Better Breaks Fund for RNIB Activate 2013 Scottish Natural Heritage for Insight Outdoors Department of Social Development for Campaigner s Active Network Scottish Government for the following projects: Bridge to Vision Dementia Project, Autism Champions, Self Directed Support and Insight to Health Bòrd na Gàidhlig Taic Freumhan Coimhearsnachd for Gaelic Transcription 121

122 122 Interreg for Sensory Engagement Programme Heritage Lottery Fund for the following projects: A Sense of the Past, Museums In Focus and CultureLink South East European Social Fund Wales for Engagement Gateway for Blind and Partially Sighted People Big Lottery Fund for Future In-Sight and Wales Eye Patient Advocacy Service Wales Council for Voluntary Action GwirVol for Transcription Centre Volunteering Opportunities Big Fund Young Start for Education, Respect and Awareness (ERA) Big Lottery Fund for the following projects: Looking Forward, Realise, Lisburn in Focus, Talk and Support Supporting our Volunteers through Mentoring, Trainee Grade Scheme Extending the Reach, and OPTiC (Older People Taking Control) Arts Council England for Opening Up Creative Culture Awards For All for Connecting Communities