Sense, The National Deafblind and Rubella Association Council’s report and financial statements for the year ended 31 March 2011 Contents Chairman’s and Chief Executive’s statement Report of Council for the year ended 31 March 2011 Independent auditors’ report to the Members of Sense, The National Deafblind and Rubella Association Consolidated statement of financial activities for the year ended 31 March 2011 Consolidated balance sheet as at 31 March 2011 Company balance sheet as at 31 March 2011 Summary consolidated income and expenditure account for the year ended 31 March 2011 Consolidated cash flow statement for the year ended 31 March 2011 Accounting policies Notes to the financial statements for the year ended 31 March 2011 Major supporters Charity information Chief Executive’s statement Building on Success The last two years have been a time of transition for Sense.We restructured and have therefore spent time recruiting and supporting staff into their new roles. The external environment has become more challenging with policy changes in public finance and welfare benefits. This has led to the five year strategy being revised and updated to keep pace with developments. The Community Hubs are in place and we have grown our Children’s and Adult services, whilst manitaining quality standards in residential services. We have continued to develop forums as one way of continuing to engage with stakeholders. This is an area we will develop further. The External Affairs and Knowledge Group is now established. Fundraising had a successful year, despite the difficult times and we are grateful to all our supporters who ran, swam, climbed and donated. Trading faced a particularly tough environment, but our shops continue to offer profits and our staff, volunteers and donors have ensured we had funds to continue our work. Information and advice continues to expand and we look forward to the installation of the new data-base to support this further. Research has also grown. We are working alongside Universities and colleagues to explore research at different ‘life stages’ The Legal Services Team is established and provides much valued support to staff and families. This is particularly important at a time when many families are struggling to find services for their children.The Public Policy Team has worked with the deafblind community, other charities and other groups to lobby, campaign and influence public policy, with 2010-11 being our most active year to date. We celebrated the tenth anniversary of the Deafblind Guidance, which including taking a birthday cake to Downing Street. Sense looks forward to 2011/12 and beyond. We will continue to develop and improve quality and have established key performance indicators to ensure our approach is evidence based. We are also committed to developing more innovative and responsive services. Finally I am taking the opportunity to thank friends and colleagues for another year of support. We couldn’t do it without you. Gillian Morbey OBE Chief Executive Report of Council for the year ended 31 March 2011 Who Sense helps and how The people that need our support • 356,000 people in the UK have significant hearing and sight impairment, 132,000 of whom are severely deafblind • Many also have other additional disabilities and/or learning and other difficulties • Within 20 years the number of UK people with severe deafblindness will rise by 86% • The scale of the challenge globally is also great. Sense International is supporting deafblind people in four main areas around the world. Sense services and support Sense is a charity that benefits children and adults who are deafblind. Specialist information, advice and services are provided to deafblind people, their families, carers and the professionals who work with them. People who have sensory impairments with additional disabilities are also supported. Services are available and are funded through charitable donations, grants and statutory fees. Our structure Operations Policy and Rights External Affairs & Knowledge ▲Community services and ▲Children’s services Including: assessments and support during transition; intervenor/communicator guide services; holiday & activity schemes; supported living assistance; support groups and forums; behaviour support; education, incl. schools liaison and statementing support; training and work placement. ▲Residential services tailored to individual needs ■ Quality Assurance ■ International relations and Corporate Affairs ● Information, Advice and Research ● Communications and Public Awareness ● Fundraising and Trading** (incl. charity shops whose profits are donated to Sense) ■ Public Policy ■ Legal Services What Drives Us Vision Purpose Values that guide all that we do A world in which all deafblind children and adults can be full and active members of society. In partnership with deafblind people, their families, carers and professionals to ensure access for all to advice, opportunities and support. An individual’s worth - embracing diversity and responding to individual need Self-determination - promoting the rights of individuals and providing support for this where necessary Personal fulfilment - promoting opportunities for all individuals to develop and achieve their potential Openness and honesty - our interactions will be transparent, open to scrutiny and built on trust and accountability Learning and improving - continuously improving the quality of what we do by consulting and reflecting on our actions. The Sense group ENGLAND, WALES & NORTHERN IRELAND* The main corporate services for these countries are managed by Sense’s registered office, in London. SCOTLAND INTERNATIONAL Sense Sense Cymru Sense N. Ireland Sense Scotland** Sense International** Sense’s service operations in England are managed in eleven community hub areas. Support and service areas include: children & families; adults; older people; campaigns and awareness. We operate in conjunction with a diverse range of agencies and professionals. Services include: communicator guides & intervenors; children & adults outreach services; training. Services include: a residential home; a day service; and a pre-school nursery. Work with children and adults, including providing communication support to identify peoples’ aspirations and how they want to live their lives. Work in Asia, Latin America, Eastern Europe and Africa, in conjunction with partner organisations, to develop deafblind programmes and build capacity to ensure their sustainability. * Sense is the trading name for Sense, the National Deafblind and Rubella Association, and is a registered charity and company limited by guarantee, governed by its memorandum and articles of association. It is the corporate trustee of the Royal School for Deaf Children (Birmingham) and the Coventry Society for the Blind.** The school is a registered charity, governed by its trust deed, and has been granted a linking order permitting its activities to be reported on within Sense’s report. ** Registered as separate charitable companies governed by their own memorandum and articles of association and with their own board of trustees. Children and families Children born with vision and hearing impairments – and often other disabilities to cope with – need skilled help from a wide range of professionals. Sense specialists provide vital early support to deafblind children, their families and the professionals who work with them. We promote effective multi-agency working, carry out assessments, and develop individual programmes that will help each child to reach their full potential. We also work closely with government and other agencies to ensure that the needs of deafblind children are fully taken account of. Older people More and more people are experiencing combined sight and hearing difficulties as they get older. Sense provides support, information and training to enable older people to live as independently as possible – overcoming barriers and combating the isolation that many experience. This includes providing communicator guide schemes in some parts of the country and working with local authorities to help them provide such schemes themselves. Sense has also been campaigning strongly to ensure that the needs of older people with combined hearing and sight loss are included in the Government’s strategy for and ageing society. The strategy now mentions the needs of people with communication support needs and Sense has a place on the Steering Group for the strategy. Adults Sense believes that each individual should be able to choose the lifestyle and support that is right for them. Our specialist services enable deafblind people to live as independently as possible, offering a range of housing, educational and leisure opportunities to suit each particular individual. Campaigns and awareness Sense strives to increase understanding of deafblindness among service providers, opinion formers and others – and campaigns vigorously for improved rights and access for deafblind people to the wider community. This year we generated extensive media coverage that achieved over 37 million ‘opportunities to see’ our work and our website had over 300,000 visits. Sense’s growing new media activity included; over 2,000 people now part of Sense on Facebook; and we have over 1,000 followers on Twitter. Support network Sense supports families, giving them a voice and enabling them to share information and offer much-needed support to each other. There are currently 11 established Sense branches. Most are local groups providing invaluable mutual support between families, while the Hearing and Sight Impaired branch operates nationally and offers mutual support to adults with acquired deafblindness. Some of our operational successes • High service quality rating - By March 2011, 100% of Sense’s 59 registered residential and community services had been rated either ‘good’ or ‘excellent’ by the Care Quality Commission, this is a continuation of the excellent quality standards we delivered in 2010 • Supporting deafblind people locally - Over 700 adults were supported by our community based staff. We also provided 170 children and adults with regular one-to-one community support services, including Intervenor Services for children and adults with congenital deafblindness, and Communicator Guide Services for adults with acquired deafblindness. • Specialist children’s teams provided support to over 800 children, young people and their families. • Accommodation support - We provided places in specialist residential services to 277 deafblind adults, and provided 24 hour staff support to a further 26 adults living in their own homes – often referred to as supported living services. • Chances to get away and meet - Our national holidays programme supported 118 deafblind children and adults to go away on 28 different holidays, made possible by 160 holiday volunteers. Alongside our branches, we have increased the number of Deafblind Forums and other groups led by deafblind people that we support in different parts of the country to eight. • Specialist day services were provided to 170 adults who live with their families or in residential services provided by other organisations. The Sense group includes a number of separate organisations. Sense, the trading name for Sense, The National Deafblind and Rubella Association, is a registered charity and company limited by guarantee. It is governed by its Memorandum and Articles of Association. Sense works primarily in England, Wales and Northern Ireland. It is the corporate trustee of the Royal School for Deaf Children (Birmingham) and Coventry Society for the Blind. It is the sole member of Sense Scotland and Sense International, and holds 100% of the issued share capital of Helping Sense Limited. Sense Scotland is registered in Scotland as a company with charitable purposes. It is governed by its own Memorandum and Articles of Association. Sense International is also a separately registered company and charity, governed by its Memorandum and Articles of Association. It works on a global basis, pressing for change and supporting partner organisations in India, Latin America, Eastern Europe and East Africa.  Helping Sense Limited is Sense’s trading company. It is governed by its own Memorandum and Articles of Association and its main activity is the sale of new goods through Sense’s charity shops. The profits from its activities are donated to Sense. The Royal School for Deaf Children (Birmingham) is a registered charity. The Charity Commission granted a linking order permitting its activities to be reported on within Sense’s report without the need to file its own separate annual report and accounts. It is governed by its trust deed. Coventry Society for the Blind is a charity and company governed by its Memorandum and Articles of Association. This is the consolidated annual report and accounts for all the Sense organisations. Unless otherwise stated, each of them publishes their own annual report and accounts which describe their activities and finances in more detail. Our plans for the future Sense In last year’s report we outlined a number of objectives. Here we report back on progress in these areas: Major objectives for 20010-11 included: 1. Complete a detailed review of all residential services and agree any changes needed to better align our current homes to the needs of people we expect to support in future. • This work is on-going with Sense continuing to build on our outstanding quality rating. We undertook a considerable capital spend on improving the physical quality of our homes and this work continues apace. 2. Each hub will establish a plan for local involvement and engagement. • Sense has established 11 local Community Hubs and this has been combined with increases in our investment in engagement work, which saw Sense involved in research and support for forums. 3. Establish specific plans for Sense Cymru and Sense Northern Ireland. • Sense has submitted a bid to the Welsh Assembly for continued support and have committed to extensive funding of development in Cymru over the next three years. In Northern Ireland Sense continues to develop substantial expansion plans and we are currently looking at options for new accommodation for day services and other activities 4. Establish the Research and Development team and plan a programme of initial research that will have a noticeable and measurable impact on deafblind people. • A Head of Research was appointed and the research team is undertaking three research projects, supporting internal research and commissioning five external research projects to be carried out by Universities. The projects cover the developmental issues deafblind people face across from childhood to old age.  We are expecting impact in the areas of: identifying and meeting the needs of older people who are deafblind in residential care; improved staff development; the ability to assess the learning environment for deafblind children; developing joint attention between child and parent; self perception following a diagnosis of Usher syndrome;, decision making around residential care or community-based support for older deafblind people; and the opportunities to use and develop social haptic communication. 5. Focus on new business development and cost effectiveness in trading. • During 2010 Sense’s Retail Operation continued to develop its existing non core areas of business, in an effort to gain a greater balance between core second hand hanging stock and new product. Success was seen, but within a very challenging retail environment this will only be maintained by continuing to review product and retail strategy. Growing from 2010 into the years ahead it is vital that new income streams are explored and developed if appropriate, while all the time looking to ensure a maximization of cost effectiveness and productivity. 6. Deliver successful new fundraising events to attract a new group of supporters. • Fundraising raised 10.72 million in 2010/11 - an increase of nearly £1m from 2009/10 and is our highest income to date. Again we are not resting on this success and we have revisited out strategy to ensure we build on the strong base we have. Major Objectives for 2011/12. 1. We will continue to develop Community Services, offering more flexible and responsive support services to more people. 2. We will maintain the quality standards in our Residential Services and continue to work with local authorities and health care trusts to ensure we achieve fee levels that are both efficient and effective. 3. We will continue to reach more children and families, offering support and advice through vital periods of family life. 4. Our Trading services will review its activities and continue to find innovative ways to bring in vital funds for Sense, whilst offering high levels of service to our customers. 5. Fundraising will progress further in their five year target to increase our charitable income. 6. We will advance our research projects and disseminate results for the benefit of all stakeholders concerned with deafblindness. 7. We will finish the implementation of our enhanced information and advice services. 8. We will continue to develop and find creative ways to engage with deafblind people and their families. Sense Scotland Major objectives for 2010-11 included: 1. Our 25th Anniversary falls in 2010. The Trustees are keen to celebrate this wonderful milestone and to mark the occasion we will be launching our 12 year old specially commissioned whisky. • As planned the 25th Anniversary was held in November 2010, with over £4,000 raised from a lunch and the special malt whisky launched. 2. The Big Lottery Fund Life Transitions Programme awarded funding over five years to support older children through the transitional period into adulthood. Planning and early development for this project started in 2009 but will not fully become operational until 2010. We will identify the most appropriate approaches to transition and work with individuals in order to set up group activities – such as friendship and consultation groups, and arts and outdoor activities. We will assess young people, support their communication needs and develop relationships. Learning from this project will be offered to other organisations. One Giant Leap is a five year project that launched in November 2010, although the Project Co-ordinator was appointed a few months prior to this in order to liaise with young people, their families and schools. The project is designed as a youth group for 14-25 year olds and supports young disabled people leading up to leaving school and for three years beyond this. We now have over 30 young people as members of the group, and around 15 regularly attend at any one time on Monday and Thursday evenings and Saturday mornings. They are supported by four paid staff and up to 15 volunteers, from a range of backgrounds. It is an exciting, dynamic project that offers activities as diverse as art, music, football, table tennis, cooking, walks, gardening and storytelling. But mostly it is a chance for young people to meet, get together with friends and have fun. Running in parallel with the group is a research project that is gathering up the stories and experiences of these young people as they move from school into adulthood. We are aiming to find out what makes a good transition and to share our experiences with the Scottish Government, schools, families and organisations across Scotland. 3. The Helen Keller International award will be launched in 2010 and exhibited in 2011. The 9th Helen Keller International Award competition was launched in 2010 and the exhibition of selected works took place at Glasgow Caledonian University from 9 - 26 May 2011.  The exhibition this year included an inspiring range of paintings, sculptures and multi-media artworks, selected from entries from across the world.  The Judges for the 9th Award were Francis McKee, Director of CCA; Monica Callaghan, Head of Education, Hunterian Museum & Gallery; and artist, John Shankie. 4. We will open new housing support services in Glasgow and a new children’s respite centre in Argyll and Bute. A new housing support service providing individual flats to 12 tenants was officially opened by the Scottish patron, the Duchess of Sutherland, at the end of 2010. The new childrens’ respite centre, in an excellent new build provided by Argyll and Bute Council, commenced services in April 2010. 5. We will continue to develop charity shops, to increase net profit so we can reinvest in innovative services as well as increasing the charity’s profile. A minimum of two further shops will be opened. In late 2010/2011 we opened new shops in Paisley, Greenock and Falkirk. These are on a rent free, short term lease, basis. Whilst this reduces overheads we need to respond flexibly, at times closing shops at short notice and relocating to new premises where possible. 6. The Trustees introduced ‘dashboard reporting’ last year and we will further refine this in order to provide key performance indicator reporting. Key Performance Indicators covering a range of activities including finance performance, fundraising performance and quality of care support are now regularly reported to the senior management and board of trustees. Major Objectives for 2011/12. Our strategic plan for 2011/2014 is based on five overarching themes aimed at improving the quality of the services we provide and the way in which we monitor and evidence our performance. We have also tried to link our own strategic objectives with the national outcomes outlined by the Scottish Government in its ten year National Performance Framework. Our five strategic intentions are: 1. We will support and develop positive health for service users and staff. 2. We will develop opportunities for service users, families and staff. 3. We will work in partnership with service users, families and staff to influence, drive forward and respond to change. 4. We will actively promote a culture of high standards and quality. 5. We will promote an efficient and effective organisation at all levels. The plan is based on key priority areas and clear targets that are aimed at ensuring the organisation, its staff, service users and families are able to continue to benefit and grow from the support and services provided. Our ultimate aim is to respond flexibly to the challenges ahead, take clear steps to minimise any risks and to build on the current strengths of the organisation Sense International Key Achievements in 2011/12 • In East Africa we continued to build the capacity of seven organisations in Kenya and Uganda, which has enabled them to provide community-based services to 329 deafblind and multi-sensory impaired children. We have also provided training to over 3,900 family members. • After two years of lobbying by deafblind people, their families and Sense International the Peruvian parliament voted to recognise deafblindness as a unique disability. We have since participated in a working group, alongside other professionals from special schools and institutions, and supported by the Peruvian Congress and the National Council for the Integration of Persons with Disabilities, to develop the rules of this new legislation. • In Latin America our regional programme, delivered in partnership with Perkins International, is now supporting over 150 schools in Bolivia, Brazil, Colombia, Peru and Mexico to provide specialised education services to over 2,800 deafblind and multi-sensory impaired children. • In Bangladesh, our newest country programme, we are now reaching over 200 deafblind and multi-sensory impaired children and adults, and the need for appropriate needs-based support and education for deafblind people is being recognised amongst other NGOs and government officials. • In India we have been invited to help draft a new disability law for people with disabilities, helping us to ensure that the rights of deafblind people are recognised. Our Regional Learning Centres and their partners are now reaching over 1,500 deafblind people. • Working in partnership with four maternity units in the Romanian cities of Bucharest, Oradea and Timisoara, we have facilitated the hearing screening of 7,515 babies and the visual testing of 2,082 babies, and are continuing to work with a range of professionals as well as children’s parents to develop an effective referral pathway so that children receive the very best support in their early years. In 2011/12: • We will continue to ensure better availability of, and access to, specialised and/or inclusive education and health services for all deafblind children, and extend specialist training for parents and professionals. • We will work to strengthen representative organisations and encourage the development of networks of deafblind people and their families. • We will strengthen our links with national and local legislative bodies to ensure deafblindness is included in discussions on social, educational and health policy. • We will continue to develop clear organisational structures, performance measures and planning systems which support our future as a global organisation. We will formalise and strengthen links with key organisations to build on existing initiatives and expertise, to ensure compatibility of purpose, avoid duplication of efforts and resources and achieve a wider impact. Sense Sense Working in partnership  Sense works with a wide range of partner organisations. Here are some examples at a local, national and international level: - We have been successful in bidding for contracted support work in the North of England, alongside Action for Blind People?. - We have commissioned five external research projects with universities. - We have been working in partnership with UK charities, including RNIB, RNID, Guide Dogs and Leonard Cheshire, to respond to Government White Papers - Sense International continues to work with a range of partners in the countries it works in. For example, in Nairobi, we work with Nairobi Family Services to support parents of deafblind children to meet together for advice and to gain mutual support. - In Romania our early intervention programme has been taken on by existing paediatric medical staff in their work.   Governance and internal control Structure of Governance Council can elect up to sixteen members of Council and appoint a further ten by co-option. Trustees are elected by the AGM and serve for four years before standing down. They are available for re-election immediately if they have not served for more than eight years consecutively. The Chairman is elected by Trustees and also serves a four-year term of office. Council meets four times a year and Trustees are expected to attend all Council meetings. Sense has an open and fair policy on Trustee recruitment, seeking individuals who can help us achieve our aims. All elections to Council are managed by Council Members. Statement of Council’s responsibilities The Council are responsible for preparing the Report of Council and the audited financial statements in accordance with applicable law and regulations. Company law requires Council to prepare audited financial statements for each financial year. Under that law Council have elected to prepare the audited financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law Council must not approve the audited financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these audited financial statements, Council are required to: • select suitable accounting policies and then apply them consistently • observe the methods and principles in the Charities SORP • make judgements and accounting estimates that are reasonable and prudent • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The Council are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the audited financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company 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 corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Public Benefit Council has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives and in planning its future activities. In particular, Council has considered how planned activities will contribute to the aims and objectives it has set. Sense is a membership organisation and we are proud of our long record of bring public benefit through a range of activities. Audit information So far as each trustee is aware, there is no relevant audit information of which the Charitable Company’s auditors are unaware. Relevant information is defined as “information needed by the Charitable Company’s auditors in connection with preparing their report”. Each trustee has taken all steps (such as making enquiries of other trustees and the auditors and any other steps required by the trustee’s duty to exercise due care, skill and diligence) that he/she ought to have taken in his/her duty as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the Charitable Company’s auditors are aware of that information. Committees Council is supported in its work by a number of Sub-Committees: Audit, Finance, Remuneration and Nominations Committees. Council appoints members onto these Sub-Committees and received regular reports from them on their work. Terms of Reference for each of these Committees were updated during 2010/11. The Finance Committee’s main purpose is to provide information to Council on all matters relating to the financial health of the organisation. It comprises up to eight members, half of whom must be Trustees. It is chaired by the Honorary Treasurer and membership includes up to two further trustees and an externally co-opted member with specific financial expertise. The Chief Executive, Group Director of Finance and Resources and Director of Finance of Sense are ex-officio members. The Audit Committee has the role of managing the charity’s relationships with its external and internal auditors and reports to Council on the satisfactory performance of the auditors. For 2010/11 membership of the Audit Committee was identical to that of the Finance Committee. The Chief Executive, Group Director of Finance and Resources and Director of Finance of Sense are ex-officio members. The Remuneration Committee’s role is to ensure that both Sense’s remuneration strategy for senior staff is transparent, fair and effective. Its voting membership will not exceed five with a quorum of three. The Chair and Treasurer of Sense are ex-officio voting members and at least two of the additional voting members are trustees of the charity. A fifth independent member with relevant expertise may also be appointed should the committee feel this is necessary. The Nominations Committee responsibilities include the recruitment and induction of new trustees to ensure an effective Board succession strategy, and to ensure a balanced board with a broad range of specific and generic skills to support the work of Sense. The Chief Executive is responsible for the overall management of all aspects of Sense activities. Supporting him / her is the Executive Team. Membership of the Executive Team included three group directors and three functional directors. For detailed information on the specific governance arrangements and processes for Sense Scotland and Sense International, please see their respective Annual Reports and Accounts. Internal Financial Control Council has overall responsibility for ensuring that the charity has appropriate systems of controls, financial and otherwise. The systems of internal control are designed to provide reasonable assurance against material misstatement or loss. They include: • A five year strategic plan and an annual budget approved by Council. A number of matters are specifically reserved for Council’s approval. • Regular consideration by Council of financial results, variance from budgets, non-financial performance indicators and benchmarking reviews. • The development of policy documents covering all major strategic and operational activities. These are reviewed with appropriate regularity and consultation. • The Finance Committee considers investment strategy and monitors investment performance. • Internal audit reviews the whole system of internal controls and has unrestricted access to all books, records and explanations if required. The independence of the Head of Internal Audit is assured and set out in an Internal Audit Charter, with direct access to Council via the Honorary Treasurer and the Audit Committee, who receive all internal audit reports. Identification and management of risks Council has delegated day-to-day responsibility for the management of risks to the Chief Executive. The Finance Committee is responsible for overseeing the establishment and maintenance of good practice in this area and for reporting on it to Council at each of its regular meetings. A formal risk management process has been developed to assess business risks and implement risk management strategies. Management is responsible for the identification and assessment of risk and reporting on its work to the Finance Committee and Audit Committee. Management is also responsible for developing risk mitigation strategies and controls and implementing action to minimise or reduce risk to acceptable levels. The Executive Team leads this process by selecting the most significant risks for inclusion in the Corporate Risk Report and monitoring them, receiving reports at its monthly face to face meetings. Risk identification and assessment processes have been embedded within the normal operating activities of managers throughout Sense as part of the operational plan process. This ensures that key risks are regularly reviewed, monitored and reported on. The following key potential risk areas have featured on the Corporate Risk Report for 2010/11, with some notes about how we have mitigated these risks: • Risk – Organisational Terms and Conditions Review costs more than planned. Controls Steering Group to assess all potential financial impacts • Risk – Pension Deficit. Controls – the establishment of a Pensions Working Party to consider options and develop plans • Risk – Fee Levels. Controls – The establishment of a Working Party and the development of budgetary plans to ensure we can prove all Sense’s services are value for money. • Risk – Inadequate workforce. Controls – Monthly monitoring of turnover rates, stability indices, staff vacancy levels by geographical area. Review of Organisational Terms and Conditions against professional sector expectations and competitor packages. Financial review 2010/11 The serious financial downturn the country is going through continues to affect us on a number of fronts. Services delivered under contract are being scrutinised by our statutory funders looking for the cost reductions they need to balance their own books; our shops and fundraising teams are under considerable pressure to achieve their charitable income targets, from a nation whose own financial resources are severely squeezed. We are also in a consolidation period following what was probably Sense’s most significant restructure of all time where there was hardly a single activity that wasn’t affected. Despite all this we can claim a string of successes during the year. We have developed and grown our community services income considerably and increased the statutory funding we receive from these activities. We have controlled vacancy levels in residential homes, filling them where we could and mitigating costs where we couldn’t, and our investment in legacy promotion in previous years continues to produce legacy donations that exceeded targets. Coupled with the strong financial controls we have exercised over income and expenditure our bottom line, before the decreased pension scheme deficit, resulted in an unbudgeted surplus. EXPENDITURE Expenditure on our charitable activities in 2010/11 was £64.8m. It represented an increase of £2.2m on the previous year and was the highest sum we have ever been able to afford in a single year. Most of our contracted expenditure is working with adults and relates to the provision of residential and community based services. We spent £2.7m (£2.3m 2010) working with children and families and £1.3m (£1.4m 2010) working with older people. Work on campaigning and raising awareness cost £1.3m (£819k 2010), publicity costs were £589k (£582k 2010) and on quality improvements and staff development we spent £502k (£555k 2010). Governance costs of £63k were £6k less than last year. INCOME Total income amounted to £82.3m an increase of £1.3m over the previous year. This year Sense had a reduction in fees and allowances, paid by statutory authorities, which raised £57.2m in total. This reduction did not see Sense working with less people, but we have had significant pressure placed on our fee income as funding cuts take hold, however, Sense has manitained the highest quality standards whilst working hard to reduce the cost of our services. This income is linked to agreed contracts and Sense provides services in line with our agreements with Health Authorities, Primary Care Trusts, Local Authorities and individuals. Total fundraised income reached £10.7m representing an increase of £1m on the previous year which reflects the success we have seen in legacy income and general fundraising activities.  Alongside legacy income we also benefit from involvement in events, such as the Virgin London Marathon. Income from our shops reached £11.4m, an increase of £0.2m over the previous year. In accordance with Financial Reporting Standard 17 ‘Retirement benefits’ (FRS17) the results of the defined benefit superannuation scheme valuation are included in these accounts. Partly as a result of changes in actuarial assumptions, and partly due to changes in the LPFA scheme, the scheme value increased by £8.9m and decreased the overall liability to £6.5m. Every three years the scheme’s actuaries calculate how much we need to pay into the scheme for each of the ensuing three years in order to eliminate the deficit and to ensure that sufficient funds are available to meet pension payments when they become payable. We ensure these payments are made. We closed our defined benefit superannuation scheme to new entrants in 2003 and replaced it with a defined contribution scheme. The Statement of Financial Activities before we included the FRS17 deficit resulted in a positive net movement in funds for the year of £3.86m The superannuation scheme increased this by £9.7m resulting in an overall positive net movement in funds of £13.59m. Throughout the year we have exercised strong control over our finances and ensured that expenditure was budgeted, affordable and within our income. Reserves The policy for unrestricted reserves is reviewed each year by the Finance Committee. They ensure that the target they set will be capable of: • providing sufficient working capital for budgeted operational commitments • funding responsive action in the event of a significant financial downturn • managing the rehabilitation of the people who use our services in the event of closure of the organisation. In setting the target, the Committee takes account of any risks that might impact on the level of reserves required. They include: • time needed to implement operational response to any significant reductions in income • dependence on and reliability of individual income streams • robustness of the internal reporting and response methods • potential for variation in cash flow forecasts. The target level for unrestricted cash reserves has been calculated as the equivalent of 9 weeks’ expenditure. At 31 March 2011 the sum needed was £13.6m. On the same date, the actual level of cash reserves in the unrestricted funds was £13.6m. This is equivalent to approximately 9 weeks expenditure. The policy on restricted funds is to separately record donations, grants and other sources of fundraising where restrictions are imposed that are narrower than the Charity’s overall objectives. Investment strategy Investment aims The aims of non-cash investments are to preserve their current value at a level at least in line with inflation, and to provide an income better than the level that could be obtained from cash investments. Cash will be invested to maximise return whilst meeting agreed risk appetite and future cash needs. Risk appetite We recognise that investments cannot be risk free if we are to achieve our stated investment aims but we have an appetite only for low risk investments. We have no appetite for derivatives or hedges. Ethical investments Sense wishes to avoid unethical investments that are in conflict with its charitable objectives. Employees Sense has adopted a formal Equal Opportunities Policy.  The policy is reviewed regularly and all employees are welcome to make suggestions for improvements. Over the last 12 months we have adopted a diversity strategy and implemented a new diversity board that is chaired by the Chief Executive and will include staff representatives from the BME and disability communities. Employees are kept fully informed of all factors affecting the performance of the association and any other matters likely to be of concern to them as employees through written and face to face staff briefings, our intranet and newsletters. This includes notes on decisions and discussions of both the Executive Team and Council. Employees are encouraged to present their suggestions and views at regular one to one meetings with their line managers and through implementation of a grievance procedure and Whistleblowing policy. Auditors A resolution to reappoint PricewaterhouseCoopers LLP as auditors to the company will be proposed at the annual general meeting. By order of Council and signed on its behalf G Morbey OBE Secretary 18th August 2011 Council Members Council Members Council members, showing changes during year 2010 -11 John Crabtree, Chairman Richard Monaghan, Treasurer (resigned September 2010) Alan Jones, Treasurer (resigned March 2011) Liz Booth (elected October 2010) Ian Harley Hugh Gareth Jones Jim McManus (co-opted by Sense NI) Dave Pearson (elelcted October 2010) Carol Pollington (to December 2010) David Reeves (elected October 2010) Roy Staines Duncan Tannahill (co-opted by Sense Scotland) Sue Turner (co-opted by Sense Forum) Oliver Walder Gillian Wood Council was very saddened to learn of the death of Carol Pollington during the year, her dedication to and support of Sense was inspirational and Carol is greatly missed Sense Scotland and Sense International have their own boards of Trustees: Sense Scotland Trustees Roy Cox Chairman Neil Farquharson Vice Chairman Douglas Smart Treasurer David Newton Marian McArdle (resigned September 2010) Duncan Tannahill Isabel Allan Norman Ritchie Usman Rehman Sense International Jeremy Charles (Chair) Catherine Cross (Vice Chair) Sue Turner Sunil Sheth Denis Tinsley Pankaj Shah (Treasurer) Robin Heber Percy Independent auditors’ report to the Members and Trustees of Sense, The National Deafblind and Rubella Association We have audited the financial statements of Sense, The National Deafblind and Rubella Association for the year ended 31 March 2011 which comprise Consolidated Statement of Financial Activities, the Consolidated Summary Income and Expenditure Account, the Consolidated and Company Balance Sheets, the Consolidated Cash Flow Statement, the accounting polices and the related notes. 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). Respective responsibilities of trustees and auditors As explained more fully in the Trustees’ Responsibilities Statement set out on page 12, the Trustees’ (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed auditors under the Companies Act 2006 and section 43 of the Charities Act 1993 and report in accordance with those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and 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 members and trustees as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and with 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. Scope of the audit of the financial statements 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 charitable company’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 Trustees’ Annual Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2011, and of the group’s incoming resources and application of resources, including its income and expenditure and 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 Companies Act 2006 and the Charities Act 1993. Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 1993 require us to report to you if, in our opinion: • the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or • the parent charitable company financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit. Anthony Blackwell (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP, Chartered Accountants and Statutory Auditors Leeds 18th August 2011 PricewaterhouseCoopers LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. Consolidated statement of financial activities for the year ended 31 March 2011 Note General Funds £ Designated Funds £ Restricted Funds £ Endowment Funds £ Total 2011 £ Total 2010 £ Incoming resources Incoming resources from generated funds Fundraising income 6,360,283 594,668 1,204,299 - 8,159,250 7,253,710 Legacies receivable 2,544,813 - 13,000 - 2,557,813 2,530,623 Fundraising grants receivable 1 134,311 - 1,018,000 - 1,152,311 1,051,754 Shops income 11,371,710 - - - 11,371,710 11,228,728 Investment income 2 177,629 - - - 177,629 57,404 Other income 3 469,165 27,722 10,201 - 507,088 433,606 Incoming resources from charitable activities Fees and allowances 56,812,779 - 363,882 - 57,176,661 57,443,281 Statutory grants receivable 1 638,244 - 450,844 - 1,089,088 865,346 Net gain on disposal of fixed assets 5 69,492 - - - 69,492 156,902 Total incoming resources 78,578,426 622,390 3,060,226 - 82,261,042 81,021,354 Resources expended Cost of generating funds: Fundraising costs 3,126,245 559,803 10,718 - 3,696,766 4,556,147 Shops costs 10,215,177 94,629 - - 10,309,806 10,008,844 Total cost of generating funds 13,341,422 654,432 10,718 - 14,006,572 14,564,991 Charitable activities: Work with adults 36,474,280 376,953 639,351 8,623 37,499,207 37,467,864 Work with children 2,336,066 31,024 329,194 - 2,696,284 2,324,816 Work with older people 1,244,960 15,820 21,787 - 1,282,567 1,407,420 Work in Scotland 18,458,209 91,919 1,003,064 - 19,553,192 18,295,729 International work 395,198 - 1,002,449 - 1,397,647 1,061,995 Campaigns and awareness 1,140,542 71,495 62,131 - 1,274,168 819,282 Publicity 580,465 4,360 3,898 - 588,723 581,666 Quality and staff development 482,873 3,937 15,704 - 502,514 555,008 Governance 4 63,314 - - - 63,314 68,879 61,175,907 595,508 3,077,578 8,623 64,857,616 62,582,659 Total resources expended 74,517,329 1,249,940 3,088,296 8,623 78,864,188 77,147,650 Net incoming resources/(resources expended) before transfers 4,061,097 (627,550) (28,070) (8,623) 3,396,854 3,873,704 Transfers between funds 17 (5,242,349) 5,200,830 41,519 - - - Net incoming resources/(resources expended) before revaluations (1,181,252) 4,573,280 13,449 (8,623) 3,396,854 3,873,704 Gains and losses on revaluation and disposal of fixed assets 5 462,212 - - - 462,212 556 Actuarial gain/(loss) on defined benefit pension scheme 9 9,652,000 - - - 9,652,000 (10,206,000) Net movements in funds 8,932,960 4,573,280 13,449 (8,623) 13,511,066 (6,331,740) Fund balances brought forward at 1 April 2010 9,291,872 5,092,756 7,196,631 464,639 22,045,898 28,377,638 Fund balances carried forward at 31 March 2011 17,18 18,224,832 9,666,036 7,210,080 456,016 35,556,964 22,045,898 The notes on pages 25 to 43 form part of these accounts. The group has no other recognised gains and losses other than those included in the results above, and, therefore, no separate statement of total recognised gains and losses has been presented. All incoming resources and resources expended are derived from continuing activities. Registered no. 1825301 Consolidated balance sheet as at 31 March 2011 Note 31 March 2011 £ 31 March 2010 £ Fixed assets Tangible assets 11 20,926,923 21,466,071 Investments 12 4,539,874 5,654 25,466,797 21,471,725 Current assets Stocks of goods for resale 190,227 81,846 Debtors 13 6,231,427 6,356,112 Cash at bank and in hand 15,833,722 15,871,135 22,255,376 22,309,093 Creditors (amounts falling due within one year) 14 (4,849,214) (5,426,831) Net current assets 17,406,162 16,882,262 Total assets less current liabilities 42,872,959 38,353,987 Creditors (amounts falling due after more than one year) 15 (822,995) (934,089) Net assets excluding pension liability 42,049,964 37,419,898 Defined benefit pension scheme liability 9 (6,493,000) (15,374,000) Net assets including pension liability 35,556,964 22,045,898 Funds and Reserves Restricted funds 17,18 7,210,080 7,196,631 Endowment fund 17,18 456,016 464,639 Unrestricted funds General fund (including pension reserve of £6,493,000 adverse (2010: £15,374,000 adverse)) 18,224,832 9,291,872 Designated funds 17,18 9,666,036 5,092,756 Total unrestricted funds 27,890,868 14,384,628 Total funds and reserves 35,556,964 22,045,898 The notes on pages 25 to 43 form part of these accounts. H Gareth Jones Treasurer Approved by Council On 20th September 2011 Registered no. 1825301 Company balance sheet as at 31 March 2011 Note 31 March 2011 £ 31March 2010 £ Fixed assets Tangible assets 11 14,540,135 14,955,226 Investments 12 4,568,192 33,972 19,108,327 14,989,198 Current assets Stocks of goods for resale 190,227 81,846 Debtors 13 4,024,294 4,044,071 Cash at bank and in hand 12,018,318 13,567,562 16,232,839 17,693,479 Creditors (amounts falling due within one year) 14 (4,078,548) (4,334,092) Net current assets 12,154,291 13,359,387 Total assets less current liabilities 31,262,618 28,348,585 Creditors (amounts falling due after more than one year) 15 (45,000) (106,643) Net assets 31,217,618 28,241,942 Funds and Reserves Restricted funds 17,18 4,576,432 4,872,173 Endowment fund 17,18 456,016 464,639 Unrestricted funds General fund 17,18 22,042,162 22,880,024 Designated funds 17,18 4,143,008 25,106 Total funds and reserves 31,217,618 28,241,942 The notes on pages 25 to 43 form part of these accounts. H Gareth Jones Treasurer Approved by Council on 20th September 2011 Consolidated summary income and expenditure account for the year ended 31 March 2011 2011 £ 2010 £ Income of continuing operations 82,013,921 80,807,048 Total expenditure of continuing operations (78,223,016) (76,722,443) Operating surplus 3,790,905 4,084,605 Income from fixed asset investments 97,716 - Gain on disposal of tangible fixed assets 69,492 156,902 Interest receivable and similar income 79,913 57,404 Interest payable and similar charges (62,172) (30,207) Other finance charge (579,000) (395,000) Net income for the year 3,396,854 3,873,704 The consolidated summary income and expenditure account is presented in order to ensure compliance with the Companies Act 2006. A detailed analysis of income and expenditure by source is provided in the consolidated statement of financial activities. All incoming resources and resources expended are derived from continuing activities. The consolidated summary income and expenditure account is derived from the statement of financial activities which, together with the notes to the accounts on pages 25 to 43 provides full information on the movements during the year on all the Association’s funds. The notes on pages 25 to 43 form part of these accounts. Consolidated cash flow statement for the year ended 31 March 2011 Note 2011 £ 2010 £ Net cash inflow from operating activities 22 5,222,430 4,228,735 Returns on investment and servicing of finance Investment income received 177,629 57,404 Interest paid (50,307) (13,189) Interest element of finance lease payments (11,865) (17,018) 115,457 27,197 Capital expenditure Purchase of investments (4,072,008) (3,002) Purchase of tangible fixed assets (1,232,156) (1,606,052) Sale of tangible fixed assets 108,636 1,012,731 (5,195,528) (596,323) Financing Bank and other loans repaid (98,826) (70,667) Capital element of finance lease payments (80,946) (165,034) (179,772) (235,701) (Decrease)/increase in cash 23,24 (37,413) 3,423,908 The notes on pages 25 to 43 form part of these accounts. Accounting policies The financial statements have been prepared under the historical cost convention as modified by the revaluation of investments at market value and in accordance with applicable UK accounting standards, the Charities Act 1993, the Companies Act 2006 and the Statement of Recommended Practice (SORP 2005), “Accounting and Reporting by Charities”. The figures contained in the consolidated financial statements relate to all activities both national and international and include those of the charity and its wholly owned charitable subsidiaries: The Royal School for Deaf Children (Birmingham), Sense Scotland, Sense International, Coventry Society for the Blind together with the results of Helping Sense Limited, its wholly owned non-charitable subsidiary. The undertakings are consolidated, excluding all inter-company transactions and balances, from the date of acquisition or formation, on a line by line basis. Incoming resources and recognition All incoming resources are included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Fees and allowances receivable for residential care and similar services are accounted for in the period in which the service is provided. Shop income represents goods supplied to customers at invoiced amounts and is recognised when the economic risks and rewards are transferred to the third party. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. Grants are recognised when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Grants received in advance with donor imposed conditions that specify the time period in which the expenditure of resources can take place are accounted for as deferred income and recognised as a liability. Fundraising income Voluntary income is accounted for when received. Non-cash donations, other than goods donated for sale through our shops, are stated at an estimate of their value to the Charity. Resources expended All expenditure, including any irrecoverable VAT, is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. The cost of generating funds for voluntary income is the cost of organising fund raising events and activities and the cost of operating the charity’s shops. The costs of charitable activities include all expenditure directly relating to the objects of the charity. Support costs have been apportioned to the relevant charitable activity on the basis of salary costs incurred. Governance costs Governance costs include internal and external audit, strategic costs and Trustees’ expenses. Tangible fixed assets and depreciation Tangible fixed assets are stated at historic purchase cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Using the following methods, depreciation is calculated so as to write off the cost of tangible fixed assets over their estimated useful economic lives at the following annual rates: In equal annual instalments: Freehold buildings - 2% Short leasehold properties and - over the remaining life of the lease long leasehold improvements Furniture, fixtures and fittings - 12.5%-25% Motor vehicles - 25% Freehold land is not depreciated. Individual fixed assets costing £500 or more are capitalised at cost. Leases Assets acquired under finance leases are included under tangible fixed assets in the balance sheet and depreciated as indicated above. The related liability for the capital element is included in creditors and the interest element, which is calculated on the basis of the amount of borrowing outstanding, is charged to the statement of financial activities in the period to which it relates. Operating lease rentals are charged to the statement of financial activities in equal amounts over the term of the lease. Stocks Stocks are stated at the lower of cost and net realisable value and consist of collection bags for donated goods and new goods bought for resale, cost is determined on a first-in, first-out basis. Recognition of Liabilities Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events. Group pension costs Pension costs are accounted for in accordance with FRS17 in respect of the London Pension Funds Authority Superannuation Scheme, a defined benefit pension scheme. As a result the regular service cost of providing retirement benefits to employees, the full cost or gain of providing amendments to benefits in respect of past service, income representing the expected return on assets of the fund and a cost representing the interest on the liabilities are charged to the statement of financial activities in the year. Differences between actual and expected returns on assets during the year, together with differences arising from changes in assumptions underlying the present value of scheme liabilities and experience gains and losses arising on scheme liabilities are also recognised in the statement of financial activities. The difference between the market value of assets and the present value of liabilities is shown as a net liability on the balance sheet. The group also operates a defined contribution scheme for all other staff. Contributions are charged to the statement of financial activities in the period in which they are payable. Company pension costs The company is a participating employer in a defined benefit pension scheme covering the majority of its employees who contribute to a pension scheme. The contributions payable by the company are accounted for as if the scheme were a defined contribution scheme. Fixed assets - securities The quoted securities are valued at market value based on the Stock Exchange Daily Official list or similar recognised market value. Realised and unrealised gains and losses on sale or revaluation of investments are taken to the statement of financial activities in the period in which they arise. Fixed assets – subsidiary undertakings Investments in subsidiary undertakings are stated at cost, but are written down to their realisable value if it is considered that there has been a permanent diminution in their value. Fund Accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. Restricted funds are funds which are to be used in accordance with specific instructions imposed by the donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. Endowment funds represent those assets which must be held permanently by the charity, principally properties. Any capital gains or losses arising form part of the fund. Depreciation of the properties is charged against the fund. Investment income and gains are allocated to the appropriate fund. Notes to the financial statements for the year ended 31 March 2011 1 Grants receivable Sense - Statutory Grants receivable 2011 £ 2010 £ Cambridgeshire County Council 18,500 30,900 Cambridgeshire County Council 49,121 800 Carmarthenshire County Council 8,000 - Cornwall County Council 58,132 21,774 Department of Health Section 64 Grant – Deafblind Forums - 38,621 Department of Health towards Older Persons Partnership 51,794 48,254 Derbyshire County Council - 9,900 Gwynedd And Ynys Mons 2,101 2,101 Homefirst nursery Placements - 24,353 Lincolnshire County Council 146,278 145,550 Newtown Abbey (Surestart) 42,432 - Norfolk County Council (SA Funds) 15,175 9,825 Northern Ireland Housing Executive 26,138 26,138 Peterborough City Council Supporting People Grant 17,300 30,784 Powys – supporting people 12,988 12,924 Rotherham County Council 27,006 - Skills for Care (towards staff training) 23,380 51,931 South Gloucestershire Children’s Services Grant 2,929 2,929 Suffolk Social Services (Fixed Payment) 63,864 8,685 Suffolk Supporting People Grant (Core) 9,691 - Suffolk Supporting People Grant (Flexi) 44,829 49,548 Western Health And Social Care Trust 15,190 15,300 Sense Scotland – Statutory Grants receivable Scottish Government (Malawi Project) 111,594 - Scottish Local Authorities and Health Boards (towards services) 20,724 26,924 Scottish Executive (Children, Young People & Social Care Group Unified Vol. Sector Fund) 66,785 66,785 Tayside NHS 5,350 15,968 NHS Greater Glasgow (Innovation projects) 160,923 159,329 Glasgow City Council (Threads) 9,933 5,000 Scottish Executive (Malawi Project) - - Other statutory grants 78,931 61,023 Total Statutory grants received 1,089,088 865,346 Sense - Charitable Grants receivable Department of Health Grant (Towards Deafblind Direct) - 39,690 Department of Health Grant (Rubella Project) 50,731 50,952 Northern Ireland DHSS (towards Services in Northern Ireland - Core Grant) 25,038 25,038 Northern Ireland DHSS NVQ Funding 8,740 11,640 Welsh National Assembly (towards Organisational Development - Core Grant) 94,000 92,000 Sense Scotland - Charitable Grants receivable Big Lottery Fund - 1,000 Big Lottery Fund (One Giant Leap) 55,148 - Big Lottery Fund (Reaching Out) 96,580 83,731 Creative Scotland (National Lottery Grant) - Arts 45,000 - Path to Health 13,200 13,200 Scottish Arts Council (National Lottery Grant) - 7,736 Scottish Arts Council (National Lottery Grant) - Music 13,650 - Scottish Arts Council (National Lottery Grant) – Flexible Funds for Art 50,000 50,000 Sense International - Charitable Grants receivable Department for International Development (Developing a sustainable infrastructure for the inclusion of deafblind people in Bangladesh) 83,132 31,060 European Commission Europe Aid Co-operation Office (Developing a sustainable infrastructure for the integration of deafblind people in India) 113,880 113,880 European Commission Europe Aid Co-operation Office (Developing model services and a sustainable infrastructure for the integration of deafblind people in Peru) 200,379 3,923 European Commission Europe Aid Co-operation Office (Promoting Access to education for deafblind and multi-sensory impaired children in Tanzania) 21,496 35,741 Bid Lottery Fund (promoting the Social Inclusion of Deafblind people in Latin America) 107,218 105,308 States of Jersey Overseas Aid Committee 17,796 - European Commission Europe Aid Co-operation Office (Promoting Access to education for deafblind and multi-sensory impaired children in East Africa) 155,536 - Others 787 386,855 Total Charitable Grants receivable 1,152,311 1,051,754 All grants given for a specific purpose have been expended entirely on that purpose. 2 Investment income 2011 £ 2010 £ Bank interest 79,913 57,404 Dividends 97,716 - 177,629 57,404 3 Other income Other income is mainly derived from rental of accommodation, training and consultancy provided to other organisations and charities mainly concerned with sensory impairment. 4 Expenditure Direct costs Support costs £ 2011 £ 2010 £ Fundraising 3,225,899 470,867 3,696,766 4,556,147 Trading 10,162,160 147,646 10,309,806 10,008,844 Work with adults 32,715,205 4,784,002 37,499,207 37,467,864 Work with children 2,463,120 233,164 2,696,284 2,324,816 Work with older people 1,118,316 164,251 1,282,567 1,407,420 Campaigning and awareness raising 1,131,167 143,001 1,274,168 819,282 Publicity 529,639 59,084 588,723 581,666 Quality and staff development 449,056 53,458 502,514 555,008 Work in Scotland 18,777,414 775,778 19,553,192 18,295,729 International work 1,284,384 113,263 1,397,647 1,061,995 Governance 63,314 0 63,314 68,879 71,919,674 6,944,514 78,864,188 77,147,650 Analysis of support costs apportioned Facilities Management Human resources Finance & IT Communications 2011 £ 2010 £ Fundraising 13,467 240,644 64,690 137,626 14,440 470,867 128,604 Trading - 16,717 122,579 8,350 - 147,646 323,157 Work with adults 416,234 403,687 1,999,410 1,518,364 446,307 4,784,002 3,069,159 Work with children 20,287 19,675 97,448 74,002 21,752 233,164 149,586 Work with older people 14,291 13,860 68,646 52,131 15,323 164,251 105,375 Campaigning and awareness raising 12,442 12,067 59,765 45,386 13,341 143,001 63,606 Publicity 5,141 4,986 24,693 18,752 5,512 59,084 36,371 Quality and staff development 4,651 4,511 22,342 16,967 4,987 53,458 72,607 Work in Scotland - 404,249 169,602 201,927 - 775,778 734,462 International work - 84,296 - 28,967 - 113,263 190,826 486,513 1,204,692 2,629,175 2,102,472 521,662 6,944,514 4,873,753 Support costs have been apportioned on the basis of salary costs. Analysis of governance costs 2011 £ 2010 £ Internal audit 6,671 6,547 External audit fees 39,950 38,305 Strategic management costs 6,500 6,500 Trustees’ expenses 10,193 17,527 63,314 68,879 5 Gains/(losses) on tangible fixed assets and investments 2011 £ 2010 £ Net gain on sale of tangible fixed assets stated as incoming resources 69,492 156,902 Unrealised (loss)/gain on revaluation of listed investments 462,212 556 6 Net movement in funds The net movement in funds is stated after charging: 2011 £ 2010 £ Auditors’ remuneration – audit services 39,950 38,305 Depreciation - owned assets 1,675,572 1,606,434 - finance leased assets 56,588 115,593 Operating lease rentals 3,390,419 3,416,112 Interest payable on bank loans 50,307 13,189 Interest payable on finance leases 11,865 17,018 Other finance charge - pension scheme 579,000 395,000 7 Employees' remuneration 2011 £ 2010 £ Wages and salaries 48,591,273 48,040,165 Social security costs 3,773,228 3,776,295 Other pension costs 1,794,776 912,497 Agency labour 1,688,264 1,635,400 55,847,541 54,364,357 The average number of persons employed by the charity was 3,264 (2010: 3,233). No employees (2010: 3) earned between £60,001 and £70,000, 3 employees (2010: 3) earned between £70,001 and £80,000, 4 employees (2010: 4) earned between £80,001 and £90,000, no employees (2010: 3) earned between £90,001 and £100,000, 2 employees earned between £100,001 and £110,000 (2010: 0), 1 employee earned between £110,001 and £120,000 (2010: 0), and no employees (2010: 1) earned between £120,001 and £130,000. Disabled employee note Sense is committed to employment policies, which follow best practice, based on equal opportunities for all employees, irrespective of sex, race, colour, disability or marital status.  The group gives full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities.  Appropriate arrangements are made for the continued employment and training, career development and promotion of disabled persons employed by the group.  If members of staff become disabled the group continues employment, either in the same or an alternative position, with appropriate retraining being given if necessary.   Employee involvement Sense systematically provides employees with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests.  Employee involvement in the group is encouraged, as achieving a common awareness on the part of all employees of the financial and economic factors affecting the group plays a major role in maintaining our success.  Sense encourages the involvement of employee's by means of staff forums, which at present are being enhanced and re-launched across all parts of the group. Sense also runs a number of Diversity Groups with staff representing minority groups meeting to assist and advise Sense on overcoming issues that such groups of staff may face. 8 Remuneration of members of council As required by the Charities Act, members of Council received no remuneration. Members of Council received £10,193 (2010: £17,527) in respect of reimbursement of expenses incurred. 9 Pensions The Charity participates in the London Pension Funds Authority Superannuation Scheme (LPFA) providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the participating employers, being mainly invested in equity investments and Government Securities. The most recent triennial valuation was as at 31 March 2010. For the period to 31 March 2012 contributions to the pension scheme are at the rate of 17.2% of pensionable salaries. Financial assumptions The financial assumptions used to calculate the Scheme liabilities under FRS17 were as follows: At 31 March 2011 % pa At 31 March 2010 % pa Rate of inflation – RPI 3.5 3.9 Rate of inflation – CPI 2.7 n/a Rate of increase in salaries 4.5 5.4 Rate of increase for pensions in payment 2.7 3.9 Discount rate 5.5 5.5 The assumed life expectations from age 65 were as follows: 2011 Years 2010 years Retiring today - Men 20.5 19.6 - Women 23.8 22.5 Retiring in 20 years - Men 22.5 20.7 - Women 25.6 23.6 Scheme assets and expected rate of return The assets in respect of the membership of Sense and the expected rates of return were: Long term return expected at 31 March 2011 % Value at 31 March 2011 £’000 Long term return expected at 31 March 2010 % Value at 31 March 2010 £’000 Equities 7.4 18,588 7.5 17,364 Target return funds 4.5 3,233 4.5 2,481 Alternative assets 6.4 3,771 6.5 3,473 Other bonds 5.5 539 5.5 248 Cash 3.0 808 3.0 1,240 6.7 26,939 6.8 24,806 The equity investments and bonds which are held in plan assets are quoted and are valued at the current bid price. The following amounts at 31 March 2011 were measured in accordance with the requirements of FRS 17: 2011 £'000 2010 £'000 Total market value of assets 26,939 24,806 Present value of Scheme liabilities (33,432) (40,180) Net pension liability (6,493) (15,374) Reconciliation of present value of scheme liabilities 2011 £’000 2010 £’000 1 April 2010 40,180 23,868 Current service cost 1,384 663 Curtailments 24 47 Interest cost 2,276 1,604 Benefits paid (1,046) (883) Contributions by members 342 374 Actuarial (gain)/loss (9,728) 14,507 31 March 2011 33,432 40,180 The following table sets out the impact of a change in the discount rates on the Total Obligation and Projected Service Cost along with a +/- 1 year age rating adjustment to the mortality assumption. Sensitivity analysis of scheme liabilities £’000 £’000 £’000 Adjustment to discount rate +0.1% 0% -0.1% Present value of total obligation 32,592 33,432 34,296 Projected service cost 959 996 1,034 Adjustment to mortality age rating assumption +1 year None -1 year Present value of total obligation 32,296 33,432 34,568 Projected service cost 951 996 1,041 Reconciliation of fair value of scheme assets 2011 £’000 2010 £’000 1 April 2010 24,806 18,493 Expected return on scheme assets 1,697 1,209 Contributions by members 342 374 Contributions by the employer 1,216 1,312 Actuarial gain/(loss) (76) 4,301 Benefits paid (1,046) (883) 31 March 2011 26,939 24,806 The following components of the pensions charge have been recognised in the statement of financial activities in the year to 31 March 2011: 2011 £’000 2010 £'000 Amounts charged to the statement of financial activities: Current service cost 1,384 663 Past service cost - - Curtailment and Settlements 24 47 1,408 710 Other finance (income)/cost: Interest cost 2,276 1,604 Expected return on assets (1,697) (1,209) Net charge to other finance cost/(income) 579 395 Total statement of financial activities charge 1,987 1,105 Actuarial gain/(loss) recognised: Actual return less expected return on pension scheme assets (76) 4,301 Experience (gain)/loss on pension scheme liabilities 2,345 10 Gain from the change in pension increase policy 4,356 - Change in financial assumptions underlying the present value of the scheme liabilities 3,027 (14,517) Total actuarial gain/(loss) recognised 9,652 (10,206) History of experience gains and losses 2011 2010 2009 2008 2007 Defined benefit obligation (£'000) (33,432) (40,180) (23,868) (24,766) (28,327) Plan assets (£'000) 26,939 24,806 18,493 21,880 21,793 Deficit (£'000) (6,493) (15,374) (5,375) (2,886) (6,534) (Gain)/loss on scheme assets: Amount (£'000) (76) 4,301 (6,089) (2,086) 186 % of Scheme assets at end of year -0.3% 17.3% -32.9% -9.5% 0.9% Experience (gain)/loss on scheme liabilities: Amount (£'000) 2,345 10 997 882 (5) % of Scheme liabilities at end of year 7.0% 0% 4.2% 3.6% 0.0% Total actuarial (gain)/ loss recognised: Amount (£'000) 9,652 10,206 2,784 (3,634) (2,531) % of Scheme liabilities at end of year 28.9% 25.4% 11.7% (14.7%) (8.9%) The contributions payable by Sense (the company) to the LPFA are accounted for as if the scheme were a defined contribution scheme, as Sense (the Company) is unable to identify its share of the underlying assets and liabilities in the scheme. In addition, Sense has 13 staff members in the Department of Education and Science Teachers’ Pension Scheme (TPS). The TPS is a multi-employer pension scheme and the company is unable to identify its share of the underlying (notional) assets and liabilities of the scheme; accordingly, the company has also accounted for the contributions to this scheme as if it was a defined contribution scheme. 10 Company Statement of Financial Activities As permitted by section 408 of the Companies Act 2006, and by paragraph 397 of the Statement of Recommended Practice 2005, the Company's statement of financial activities has not been included within these financial statements. The company's gross income for the year was £56,718,996 (2010 £57,455,197) and its net incoming resources for the year were £2,513,464 (2010: £2,316,312). The company made an unrealised gain on investments of £462,212 (2010: £556). The company's net increase in funds was £2,975,676 (2010: £2,316,868). 11 Tangible assets Group Freehold property £ Long leasehold improvements £ Short leasehold improvements £ Furniture, fixtures and fittings £ Motor vehicles £ Total £ Cost At 1 April 2010 15,619,776 4,433,880 743,975 8,055,736 3,374,282 32,227,649 Additions 3,000 30,576 28,694 782,205 387,681 1,232,156 Disposals (31,081) - - (146,212) (380,569) (557,862) At 31 March 2011 15,591,695 4,464,456 772,669 8,691,729 3,381,394 32,901,943 Depreciation At 1 April 2010 1,614,995 323,340 452,800 6,061,029 2,309,414 10,761,578 Charge for the year 275,144 77,691 50,783 850,884 477,658 1,732,160 Disposals (6,265) - - (141,389) (371,064) (518,718) At 31 March 2011 1,883,874 401,031 503,583 6,770,524 2,416,008 11,975,020 Net book amounts At 31 March 2011 13,707,821 4,063,425 269,086 1,921,205 965,386 20,926,923 At 31 March 2010 14,004,781 4,110,540 291,175 1,994,707 1,064,868 21,466,071 Fixed assets include assets acquired under finance leases. The gross book value of these assets is £226,352 (2010: £446,322), the net book value is £32,045 (2010: £115,304). Company Freehold Property £ Long leasehold improvements £ Short leasehold improvements £ Furniture, fixtures and fittings £ Motor vehicles £ Total £ Cost At 1 April 2010 9,325,529 3,856,542 737,108 7,376,190 3,177,393 24,472,762 Additions 3,000 30,576 28,694 762,522 314,573 1,139,365 Disposals (31,081) - - (112,754) (355,569) (499,404) At 31 March 2011 9,297,448 3,887,118 765,802 8,025,958 3,136,397 25,112,723 Depreciation At 1 April 2010 1,305,591 128,096 446,943 5,493,598 2,143,308 9,517,536 Charge for the year 149,259 61,705 49,773 796,884 457,691 1,515,312 Disposals (6,265) - - (107,931) (346,064) (460,260) 31 March 2011 1,448,585 189,801 496,716 6,182,551 2,254,935 10,572,588 Net book amounts At 31 March 2011 7,848,863 3,697,317 269,086 1,843,407 881,462 14,540,135 At 31 March 2010 8,019,938 3,728,446 290,165 1,882,592 1,034,085 14,955,226 Fixed assets include assets acquired under finance leases. The gross book value of these assets is £226,352 (2010: £446,322), the net book value is £32,045 (2010: £115,304). 12 Investments Group 2011 £ 2010 £ Fixed asset investments: Listed in UK (at market value) 4,539,874 5,654 Movements in the value of fixed asset investments listed in the UK can be explained as follows: 2011 £ 2010 £ Opening market value 5,654 414 Transfer current assets - 1,682 Purchases of investments 4,072,008 3,002 Unrealised gain/(loss) on investments held 462,212 556 Closing market value 4,539,874 5,654 Quoted securities are represented by: 2011 £ 2010 £ UK Equity shares and funds 714 - UK Investment trusts and unit trusts 4,539,160 5,654 4,539,874 5,654 The quoted securities include Alpha CIF for Endowments, income units, representing 99.9% of the portfolio. Company 2011 £ 2010 £ Fixed asset investments: Listed in UK (at market value) 4,538,192 3,972 Paid up shares: 100% holding in Helping Sense Limited 30,000 30,000 4,568,192 33,972 Movements in the market value of fixed asset investments listed in the UK can be explained as follows: 2011 £ 2010 £ Opening market value 3,972 414 Purchase of investments 4,072,008 3,002 Unrealised gain on investments held 462,212 556 At 31 March 2011 4,538,192 3,972 Sense owns 100% of the ordinary share capital of its subsidiary company Helping Sense Limited. Helping Sense Limited is incorporated in England and Wales and exists to raise funds for the charity Sense, the National Deafblind and Rubella Association. There is no readily available market value for the company and accordingly it is accounted for at cost. Quoted securities are represented by: 2011 £ 2010 £ UK Equity shares and funds 714 - UK Investment trusts and unit trusts 4,537,478 3,972 4,538,192 3,972 The quoted securities include Alpha CIF for Endowments, income units, representing 99.9% of the portfolio. 13 Debtors Group 2011 £ 2010 £ Trade debtors 3,994,665 4,403,168 Taxation recoverable 123,669 95,464 Other debtors 497,714 211,254 Prepayments 1,615,379 1,646,226 6,231,427 6,356,112 No amounts included above fall due after more than one year. Company 2011 £ 2010 £ Trade debtors 1,690,958 1,998,693 Amounts owed by group undertakings 228,065 200,045 Taxation recoverable 123,669 95,464 Other debtors 424,468 155,739 Prepayments 1,557,134 1,594,130 4,024,294 4,044,071 No amounts included above fall due after more than one year. 14 Creditors (amounts falling due within one year) Group 2011 £ 2010 £ Bank loans (note 15) 42,451 39,987 Other loans 16,000 36,653 Obligations under finance lease contracts (note 15) 30,457 80,946 Trade creditors 1,072,635 960,180 Taxation and social security 1,054,951 1,015,951 Accruals and other creditors 2,581,468 3,022,942 Deferred income 51,252 270,172 4,849,214 5,426,831 Company 2011 £ 2010 £ Other loans 9,000 12,652 Obligations under finance lease contracts (note 15) 30,457 80,946 Trade creditors 1,068,022 959,752 Taxation and social security 750,981 688,711 Accruals and other creditors 2,220,088 2,592,031 4,078,548 4,334,092 15 Creditors (amounts falling due after more than one year) Group 2011 £ 2010 £ Bank loans 777,995 820,446 Other loans 45,000 83,186 Obligations under finance lease contracts - 30,457 822,995 934,089 Company 2011 £ 2010 £ Other loans 45,000 76,186 Obligations under finance lease contracts - 30,457 45,000 106,643 The bank loan is in respect of 43 Middlesex Street, Glasgow which was provided by HBOS who have first charge on the property. The loan is payable in equal instalments over 20 years and the interest charge is fixed at 1% over base rate. The other loans are interest free. The bank loan repayments for the group fall due as follows: 2011 £ 2010 £ Within one year 42,451 39,987 Between one and two years 42,451 42,451 Between two and five years 197,629 143,705 Over five years 537,915 634,290 820,446 860,433 At 31 March 2011 the Charity had obligations under finance leases as set out below: Group and company 2011 £ 2010 £ Amounts payable: Within one year 30,457 80,946 In two to five years - 30,457 30,457 111,403 16 Share capital The charity has no share capital. The liability of the members is limited by guarantee. The members have undertaken to contribute such amount not exceeding one pound each as may be required in the event of the Charity being wound up. 17 Movements in funds Group Balance at 1 April 2010 £ Income, gains, losses and transfers in £ Resources expended and transfers out £ Balance at 31 March 2011 £ General Total general 9,291,872 89,401,658 80,468,698 18,224,832 Designated Working with adults (13,475) 3,642,444 456,798 3,172,171 Working with children 28,728 219,455 29,688 218,495 Working with older people - - - - Campaigns and publicity - 786,034 178,692 607,342 Quality, training and staff development 9,853 135,147 - 145,000 Work in Scotland 5,067,650 1,084,746 629,368 5,523,028 Total designated 5,092,756 5,867,826 1,294,546 9,666,036 Restricted Working with adults 4,265,875 309,259 843,552 3,731,582 Working with children 470,948 560,535 315,048 716,435 Working with older people 137,407 2,025 11,795 127,637 Campaigns & awareness (2,835) 15,000 12,165 - Quality, training and staff development 778 - - 778 Work in Scotland 2,105,433 1,303,815 1,003,064 2,406,184 International work 219,025 1,010,888 1,002,449 227,464 Total restricted 7,196,631 3,201,522 3,188,073 7,210,080 Endowment Working with adults 464,639 - 8,623 456,016 Total endowment 464,639 - 8,623 456,016 Total funds 22,045,898 98,471,006 84,959,940 35,556,964 Company Balance at 1 April 2010 £ Income, gains, losses and transfers in £ Resources expended and transfers out £ Balance at 31 March 2011 £ General Total general 22,880,024 57,064,917 57,902,779 22,042,162 Designated Working with adults (13,475) 3,642,444 456,798 3,172,171 Working with children 28,728 219,455 29,688 218,495 Working with older people - - - - Campaigns and publicity - 786,034 178,692 607,342 Quality, training and staff development 9,853 135,147 - 145,000 Total designated 25,106 4,783,080 665,178 4,143,008 Restricted Working with adults 4,265,875 309,259 843,552 3,731,582 Working with children 470,948 560,535 315,048 716,435 Working with older people 137,407 2,025 11,795 127,637 Campaigns & awareness (2,835) 15,000 12,165 - Quality, training and staff development 778 - - 778 Total restricted 4,872,173 886,819 1,182,560 4,576,432 Endowment Working with adults 464,639 - 8,623 456,016 Total endowment 464,639 - 8,623 456,016 Total funds 28,241,942 62,734,816 59,759,140 31,217,618 Unrestricted funds Unrestricted funds are held for the general purposes of the charity as set out in its governing document. Designated funds Designated funds are unrestricted funds that the charity has earmarked for particular projects and uses in the future. Major examples are Asset Replacement funds and Cyclical Maintenance funds, which are created for the future maintenance, repair or replacement of property, equipment, vehicles and other assets necessary for the continuance of the charity’s work. Funds are transferred from unrestricted funds when particular projects are set up. Restricted funds Restricted funds are funds held by the charity for particular applications, specified by the donor, within the charity’s objectives, and can only be applied to those particular purposes. The restrictions may apply to income or capital or both. Many of the restricted funds are generated through Asset or Project targeted appeals. Endowment funds The Endowment fund is a restricted fund held as a capital fund for the charity’s benefit. In 2003 the Charity Commission gave its approval for Sense to relocate from its endowed property known as the Princess Royal Centre in Birmingham to other property in the area and to charge the costs of doing so to the Endowment fund. 18 Analysis of net assets between fund balances Net assets at 31 March 2011 were analysed between the funds as follows: Group General £ Designated £ Restricted £ Endowment £ Total £ Tangible fixed assets 10,590,164 5,409,363 4,471,380 456,016 20,926,923 Investments 4,539,874 - - - 4,539,874 Net current assets 10,410,789 4,256,673 2,738,700 - 17,406,162 Long term liabilities (822,995) - - - (822,995) Pension liability (6,493,000) - - - (6,493,000) Total 18,224,832 9,666,036 7,210,080 456,016 35,556,964 Company General £ Designated £ Restricted £ Endowment £ Total £ Tangible fixed assets 10,829,076 - 3,255,043 456,016 14,540,135 Investments 4,568,192 - - - 4,568,192 Net current assets 6,689,894 4,143,008 1,321,389 - 12,154,291 Long term liabilities (45,000) - - - (45,000) Total 22,042,162 4,143,008 4,576,432 456,016 31,217,618 19 Capital commitments Capital expenditure authorised and contracted for but not provided for amounted to £Nil (2010: £100,000). 20 Contingent liability Contingent liabilities of £1,196,000 (2010: £1,196,000) exist relating to grants received from the Department of Health and Leeds Healthcare towards the development of 12 Hyde Close, Barnet; 138 Bradford Road, Leeds; 509 Leeds and Bradford Road, Leeds, which may be repayable in certain circumstances. Sense, Sense Scotland and Helping Sense Limited are members of a group VAT registration. Under the Value Added Tax Act 1983, all the members of a VAT group are jointly and severally liable for any tax due during the period of their membership. 21 Operating lease commitments At 31 March 2011 the Charity had annual commitments under non-cancellable operating leases as set out below: 2011 2010 Group Land and buildings £ Other £ Land and buildings £ Other £ Operating leases which expire: Within one year 363,695 17,066 209,875 11,464 In two to five years 1,203,617 71,349 1,165,689 47,729 After five years 1,407,354 - 1,535,305 965 2,974,666 88,415 2,910,869 60,158 2011 2010 Company Land and buildings £ Other £ Land and buildings £ Other £ Operating leases which expire: Within one year 259,451 6,079 144,150 2,141 In two to five years 1,055,137 71,349 1,025,375 47,729 After five years 1,310,729 - 1,442,730 965 2,625,317 77,428 2,612,255 50,835 22 Reconciliation of net incoming resources to net cash inflow from operating activities 2011 £ 2010 £ Net incoming resources before revaluation 3,396,854 3,873,704 Difference between pension charge and cash contributions 771,000 (207,000) Investment income received (177,629) (57,404) Interest paid 62,172 30,207 Depreciation 1,732,160 1,722,027 (Profit) on sale of tangible fixed assets (69,492) (156,902) (Increase)/decrease in stocks (108,381) (7,693) Decrease/(increase) in debtors 124,685 (233,496) (Decrease)/increase in creditors (508,939) (734,708) Net cash inflow from operating activities 5,222,430 4,228,735 23 Reconciliation of net cash flow to movement in net liquid resources 2011 £ 2010 £ (Decrease)/increase in cash in the year (37,413) 3,423,908 Cash outflow/(inflow) from loans and lease financing 179,772 235,701 Current asset investments - (1,682) Changes resulting from cash flows 142,359 3,657,927 Net liquid resources at 1 April 2010 14,779,460 11,121,533 Net liquid resources at 31 March 2011 14,921,819 14,779,460 24 Analysis of changes in net liquid resources At 1 April 2010 £ Cash flows £ Other changes £ At 31 March 2011 £ Cash at bank and in hand 15,871,135 (37,413) - 15,833,722 Debt due within one year (76,640) 98,826 (80,637) (58,451) Debt due after one year (903,632) - 80,637 (822,995) Finance leases (111,403) 80,946 - (30,457) 14,779,460 142,359 - 14,921,819 25 Subsidiary Companies The charity controls three charitable company subsidiaries - Sense Scotland (registered in Scotland), Sense International (registered in England) and Coventry Society for the Blind (registered in England). The subsidiaries have similar aims and objectives to the parent charity. All activities have been consolidated on a line by line basis into the statement of financial activities. A summary of the results of the subsidiaries for the year ended 31 March 2011 are shown below: Sense Scotland 2011 £ 2010 £ Incoming resources 22,862,354 21,763,004 Resources expended (21,627,070) (20,410,571) Net movement in funds 1,235,284 1,352,433 Assets 11,618,464 10,543,056 Liabilities (1,546,299) (1,706,175) Funds 10,072,165 8,836,881 Sense International 2011 £ 2010 £ Incoming resources 1,806,492 1,419,960 Resources expended (1,386,750) (1,422,547) Net movement in funds 419,742 (2,587) Assets 997,082 712,664 Liabilities (236,901) (372,225) Funds 760,181 340,439 Coventry Society for the Blind 2011 £ 2010 £ Incoming resources 6,536 14,140 Resources expended (7,172) (13,594) Net movement in funds (636) 546 Assets 27,576 42,466 Liabilities (27,576) (41,830) Funds - 636 The charity also owns the whole of the issued share capital of Helping Sense Limited, a company registered in England. The subsidiary is used for non primary purpose trading activities, namely the support of shop sales of new goods and the organisation of fundraising activities. The total net profit is gifted to the charity. A summary of the results of the subsidiary for the year ended 31 March 2011 is shown below: Helping Sense Limited 2011 £ 2010 £ Turnover 1,584,376 1,121,673 Cost of Sales (367,517) (202,426) Gross Profit 1,216,859 919,247 Operating Expenses (1,033,319) (777,753) Net Profit 183,540 141,494 Assets 215,540 173,444 Liabilities (185,540) (143,444) Net assets 30,000 30,000 Major supporters Council is indebted to all donors for their support, both financial and otherwise, without which it would not have been possible to achieve all that we did. Substantial donations have been received from the following: Sense Awareness The Ballinger Charitable Trust Barclays The Peter Barker-Mill Memorial Charity Baron Davenport's Charity Trust Misses Barrie Charitable Trust The Bartle Family Charitable Trust BBC Children in Need The Blair Foundation The Blatchington Court Trust The Boltini Trust Eden Brown Bupa Candis The Carpenters Company Charitable Trust Catholic Holiday Fellowship Memorial Trust CHK Charities Ltd Anthony Collins The Coutts Charitable Trust The Coward Trust Ernst and Young LLP The Eveson Charitable Trust The Patrick Frost Foundation The Grace Fry Charitable Trust The Fulmer CharitableTrust Gage Networks The GMC Trust Grant Thornton The Constance Green Foundation The Hadley Trust The Harborne Parish Lands Charity The N & P Hartley Memorial Trust The Lady Hind Trust The Thomas J Horne Memorial Trust The Dorothy Howard Charitable Trust Howdens Joinery Company The Albert Hunt Trust KPMG LLP Lombard The 29th May 1961 Charitable Trust Merchant Taylors' Company trust The Open Gate Trust The Late Jack O'Shea Trust The Peacock Charitable Trust The P F Charitable Trust Pillbury Winthrop Shaw Pittman LLP The Platinum Trust Polizzi Charitable Trust Sir John Priestman Charity Trust The Princess Anne's Charities Trust The Reed Foundation Rococo Chocolates The Royal Bank of Scotland The Scotshill Trust SFIA Educational Trust Smith Charitable Trust The Sovereign Health Care C.T. The Spear Charitable Trust The Geoff and Fiona Squire Foundation The Miss Doreen Stanford Trust The Peter Storrs Trust Joseph Strong Frazer Trust The Tanner Trust The Connie & Albert Taylor Charitable Trust The Annie Tranmer Charitable Trust The Constance Travis Charitable Trust TruckEast Turner Media Group The Douglas Turner Trust Vision Charity The Garfield Weston Foundation The Whirlwind CharitableTrust Wildnet Group Wilmington Trust Wragge & Co LLP The Grantham Yorke Trust Sense International The Sylvia Adams Charitable Trust Advent Base2stay Big Lottery Fund Bupa BNP Paribas Securities Services Dalyan Foundation Department for International Development Evan Cornish Foundation European Union First International Group Jersey Overseas Aid Commission Stanley Thomas Johnson Foundation The Beatrice Laing Trust Medicor Foundation Stavros Niarchos Foundation Northern Trust Penson Financial Services The Rowan Charitable Trust Thames River Capital The James Tudor Foundation Vitol Charitable Foundation Zurich Community Trust Sense Scotland Creative Scotland Jennie S Gordon Memorial Foundation Lintel Trust Northwood Charitable Trust Paths for All Partnership Scottish Natural Heritage The Annie Jack Memorial Trust The Big Lottery Fund T The R S Macdonald Charitable Trust Widowers' Children's Home Trust The Gannochy Trust Radio Clyde Cash for Kids People's Postcode Lottery Trust Esmee FairbairnFoundaion Halcrow Foundation Charity information Registered address 101 Pentonville Rd London N1 9LG London office 101 Pentonville Road London N1 9LG Telephone number: 0845 127 0060 (voice) Text: 0845 127 0061 Fax: 0845 127 0062 Email: info@sense.org.uk Website: www.sense.org.uk Charity number 289868 Company number 1825301 Bankers National Westminster Bank plc Kings Cross Branch 266 Pentonville Road London N1 9LE Auditors PricewaterhouseCoopers LLP Benson House 33 Wellington Street Leeds LS1 4JP Solicitors Anthony Collins Solicitors LLP 134 Edmund Street,  Birmingham B3 2ES  Insurance advisors Willis Limited Stuart House Caxton Road Fulwood Preston PR2 9RW Key management personnel G Morbey, Chief Executive K Murali, Group Director of Finance and Resources P Cheer, Group Director of Operations S Osborne, Group Director of External Affairs and Knowledge P McCollin, Director of Human Resources D Robinson, Director of Finance C Woodhill, Director of Fundraising R Legge, Director of Community Services 43 37