SENSE, THE NATIONAL DEAFBLIND AND RUBELLA ASSOCIATION COUNCIL’S ANNUAL REPORT AND ACCOUNTS. Members of Council have pleasure in presenting their report together with the audited accounts of the company for the year ended 31 March 2012. Growing Sense together Over the period 2011 to 2012 we have been building on our new structure and reviewing our strategy. We have been developing and consulting on a new strategy that will take us forward from 2013 to 2016. This is in part due to the ever changing external environment, and in response to what our beneficiaries and members tell us. We have continued to develop our forums as a way of consulting with deafblind and multi-sensory impaired (MSI) people. Our Public Policy Team has been busy responding to the continuing new legislative initiatives, including welfare benefits, the challenges in public finance, the proposed changes in education and the increasing personalisation agenda. We have been concerned how some of these initiatives have impacted on deafblind people and our legal team have continued to support individuals who have experienced difficulties with the changes. We have continued to improve our governance and infrastructures. Our Members’ Day was the best attended yet with over 150 people enjoying a residential event where deafblind people and families could share their hopes and concerns. Our membership approach was revised and the numbers of people joining Sense continues to increase. We have continued to improve the range of ways we communicate, including developing our social media. We have improved our core functions and continue to drive down costs so we can be as efficient as possible. Our increased use of information technology is supporting our management functions and our information services continue to improve. Our direct services are also developing, with increases particularly in community services with our day resources and flexible packages of support in the community. Residential services remain a critical requirement for many people and our staff have worked hard to provide excellent support despite the pressures on funding. The Children’s Specialist Service, funded by £1 million of charitable funds, are a lifeline for many families. We can never do enough in this area and referrals continue to increase. The team always go that extra mile to provide the important services of assessment and support. Our other charitable services include holidays and this year our oldest holidaymaker was 100 years old. The holidays team and the brilliant volunteers have worked tirelessly to provide wonderful experiences to children and older people alike. We have been developing our workforce and reviewing our terms and conditions in preparation for introducing a standard 37.5 hour working week. We have established a staff forum that we intend to build on within our new strategy in 2012 and beyond. All of this of course would not be possible without the extra income we receive through our donors and friends. The Fundraising Department continues to work hard to ‘tell our story’. So many trusts, foundations and individuals give to Sense in different ways, from running marathons to coffee mornings. We have hundreds of volunteers working in our shops giving their time freely and generating funds for our charitable work. So another year of hard work, challenges, sadness and some magical moments of inspiration and happiness. None of it would be possible without our families, friends, deafblind people, staff, volunteers and of course our Trustees. Thank you each and every one as we grow Sense together. Gillian Morbey OBE Chief Executive Contents Report of Council for the year ended 31 March 2012 2 Independent auditors’ report to the Members and Trustees of Sense, The National Deafblind and Rubella Association 22 Consolidated statement of financial activities for the year ended 31 March 2012 24 Consolidated balance sheet as at 31 March 2012 26 Company balance sheet as at 31 March 2012 27 Consolidated summary income and expenditure account for the year ended 31 March 2012 28 Consolidated cash flow statement for the year ended 31 March 2012 29 Accounting policies 30 Notes to the financial statements for the year ended 31 March 2012 33 Major supporters 59 Charity information 61 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 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 Community Services and Children’s Specialist Services Including: assessments and support during transition; intervenor/ communicator-guide services; holiday and activity schemes; supported living assistance; support groups and forums; behaviour support; education, including schools liaison and statementing support; training and work placement. Residential services tailored to individual needs What drives us The Sense group 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 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 continues to campaign strongly to ensure that the needs of older people with combined hearing and sight loss are recognised and through our membership of the UK Forum on Ageing we seek to influence government policy. 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 434,000 visits. Sense’s growing new media activity included; over 3,800 people now part of Sense on Facebook; and we have over 5,500 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 nine established Sense branches. Most are local groups providing invaluable mutual support between families, while the Hearing and Sight Impaired Group operates nationally and offers mutual support to adults with acquired deafblindness. Sense has also expanded its support for forums, with people joining to offer mutual support and share experiences. Some of our operational successes Supporting deafblind people locally Over 700 adults were supported by our community-based staff. We also provided 226 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 around 800 children, young people and their families. Accommodation support We provided places in specialist residential services to 275 deafblind adults, and provided 24 hour staff support to a further 31 adults living in their own homes – often referred to as supported living services. Chances to get away and meet Our national holidays programme supported 134 deafblind children and adults to go away on 26 different holidays, made possible by 155 holiday volunteers and 37 Holiday Leaders. 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 202 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. Sense In last year’s report we outlined a number of objectives. Here we report back on progress in these areas. Major objectives for 2011-12 included: 1. We will continue to develop Community Services, offering more flexible and responsive support services to more people. • We are now offering more services than ever and our income grew by £697,000 above our target. This means more people are benefiting from the innovative and high quality services we offer. We undertook a small restructure during the year and this has helped keep us in position to meet new commissioning practices. 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. • Our Residential Services have maintained their high quality standards and we have continued to look to improve the physical environment, with ongoing emphasis on modern design with space to achieve personal goals. We worked with over 61 health care trusts and local authorities to review fee levels in relation to over 200 contracts and have reached agreement with all. In most cases Sense was able to demonstrate that our services were excellent value for money and no change in fee was required. In some instances we worked in partnership with the funder to realign the service and slightly reduce the fee without any reduction in care standards or quality. 3. We will continue to reach more children and families, offering support and advice through vital periods of family life. • Our Specialist Children’s Service worked with more families this year than we have been able to reach before and our Information and Advice Service offered support, advice and guidance to all who reached out to Sense. We are developing more approaches and services in this area and we are advancing our support to families going through periods of transition. 4. Our Trading Division 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. • We grew our shop portfolio from 78 to 81 shops during the year. We also saved on costs through restructuring activities and efficiency drives. When combined with new ranges of goods this activity helped us grow our shop income by over £350,000 during the year. 5. Fundraising will progress further in their five year target to increase our charitable income. • Despite a challenging environment our Fundraising Teams managed to stay on track, and their efforts - along with our incredibly generous supporters who ran marathons, climbed mountains, responded to appeals and remembered us in their wills – are greatly appreciated 6. We will advance our research projects and disseminate results for the benefit of all stakeholders concerned with deafblindness. • Our long and medium term research projects continue to progress and we are working with a number of universities and other partners to complete our current programmes. 7. We will finish implementing our enhanced Information and Advice Service. • Our Information and Advice Services is up and running and its’ services have proven to be greatly valued. We are finalising work on our Customer Relationship Management database, and this will further enhance the service we can offer. 8. We will continue to develop and find creative ways to engage with deafblind people and their families. • Our website received over 150,000 more visitors during the year, with those joining us on Facebook nearly doubling to 3,800 and our followers on Twitter rising over 500% to 5,800. Alongside this our family liaison work saw us offer a number of family days and activities, and our support for forums has seen a rapid rise in both the numbers of groups and the frequency of events. Major objectives for 2012-13 Sense will be finishing the final year of our strategic plan in 2012/13 and we are already immersed in developing a new three year strategic plan with the support of our members, trustees, staff and the wider deafblind community. This means our main aims for 2012/13 will be to finalise the outstanding elements of our current strategic plan, to build on the successes we have had and to position ourselves for the next three years. 1. We will build on the success of our Community Services, meeting the demands of changing commissioning practice and working with families and the wider community to offer innovative services. These will find solutions to the current financial challenges, ensuring that we continue to be able to meet the increasing demands we face. 2. We will engage with our supporters, fellow activists and partners to seek to influence Government Policy to ensure the fair treatment of, and a respect for the rights of the deafblind community, especially in relation to the Social Care Review and the Review of Special Educational Needs and Inclusion. 3. 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. Here we will look to assistive technology and creative environment design to find cost savings whilst keeping standards at the highest level. 4. We will expand our reach to include more children and families, offering support and advice through vital periods of family life. We will expand our Specialist Children’s Team and support more local authorities. 5. Our Trading Division will continue to look at reducing costs, whilst we look to expand our shop portfolio, including inventive commercial opportunities such as ’pop-up‘ shops in vacant high street properties. 6. Fundraising will use the experience gained in the last few years to target successful appeals and events, with a plan to significantly increase our investment and return in this vital area. 7. We will develop a social enterprise to generate income to increase our support to our beneficiaries. 8. We will continue to enhance our engagement with deafblind people and their families, using the success of forums and family liaison, as well as the extensive feedback we have received, to ensure we enhance our approach and stay inventive. 9. We will continue to develop our workforce through training and the continued development of staff engagement. 10. We will continue to improve our efficiency and capacity to provide a cost effective infrastructure through the use of business technology. Sense Scotland Major objectives: The charity currently works to a rolling three-year strategic plan. All stakeholders are involved in the development and the Trustees approve both the three-year strategic plan and the annual operational plan. The annual budget is also approved by the Trustees, and both the plan and the budget are evaluated at the Annual General Meeting. For the seventh year the Trustees worked to key operational themes. The Senior Management Group monitor and evaluate activities under these themes at their eight-weekly meetings and report back to the Trustee Board on performance. We continued with the monitoring arrangements reporting on the five strategic intentions and Key Performance Indicators for 2011/12. The five overarching strategic intentions have been modified slightly from previous years to ensure that they more clearly reflect our aim to work in partnership with all key stakeholders. The objectives for the year as set out in the operational plan for 2011/12 were as follows: 1. We will support and develop positive health and wellbeing for service users and staff. 2. We will develop opportunities for service users, families and staff. 3. We will actively promote a culture of high standards and quality. 4. We will promote an efficient and effective organisation at all levels. 5. We will work in partnership with service users, families and staff to influence, drive forward and respond to change. Future plans As a result of the review of Governance and the work which that review is driving it has been agreed to review the current strategic planning process and this will be reflected in future plans. Sense International Key achievements in 2011/12 • In East Africa we continued to build the capacity of 11 organisations in Kenya, Uganda, and Tanzania, training 99 community-based workers and 11 project leaders. This has enabled them to provide community-based services to 562 deafblind and multi-sensory impaired children and to train over 3,372 family members. In addition 13 deafblind education units and five vocational centres were directly supported to teach 107 deafblind pupils. • In Latin America our regional programme, delivered in partnership with Perkins International, has ensured that adequate education was provided to 2,500 deafblind and multi-sensory-impaired children supporting over 150 schools in Bolivia, Brazil, Colombia, Peru and Mexico. • In Bangladesh, we are now reaching 235 deafblind and multi-sensory­impaired children and adults, and the need for appropriate support and education for deafblind people is being recognised amongst other NGOs and government officials. • Sense International, in cooperation with our Bangladesh partner, has successfully advocated for the inclusion of deafblindness as unique disability in the new Bangladesh Disability Law (expected to be approved by the Parliament in 2012-13). • In India, 368 children received services directly through the Regional Learning Centres (RLCs), while an additional 2,015 children were served by local partners of RLCs in their respective states. We have supported and facilitated regional training programmes on deafblindness through which 105 teachers have been trained. • Working in partnership with four maternity units in the Romanian cities of Bucharest, Oradea and Timisoara, we have facilitated the hearing screening of 8,496 babies and the visual testing of 2,158 babies, and are continuing to work with a range of professionals as well as parents to develop an effective referral pathway, so that children receive the very best support in their early years. In 2012/13: • 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, to raise awareness. • 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 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 south of England, alongside Action on Hearing Loss. -We are delivering support in the north of England against a contract we won in conjunction with Action for Blind People. -We have five ongoing research projects where we have commissioned work from universities. -We have been working in partnership with UK charities, including RNIB, Action on Hearing Loss, Guide Dogs and Leonard Cheshire, to respond to Governmental reviews. -Sense International continues to work with a range of partners in the countries it works in. For example, we work with 11 partner organisations in Kenya, Tanzania and Uganda to provide community-based services to deafblind and multi-sensory-impaired children. -Sense Scotland are in discussions with Alzheimer Scotland regarding dementia awareness which is an issue for our ageing population. 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 bringing 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 of not less than two trustees, in addition to the Chair, appointed annually. The Chair of the Finance Committee is appointed annually and is usually the Honorary Treasurer. Ex-officio co-opted members may be proposed who, in the opinion of the Committee, bring relevant 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 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 includes 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. The economic downturn has affected Sense as it has all in the sector. We demonstrated that our commissioned services are value for money, but the myriad of systems in place across local authorities and health trusts in the UK has made this exercise time consuming and costly. However, we have been extremely successful in proving that Sense services are not only of the highest quality, but are, quite simply, excellent value. There have been some situations where Sense has had to withdraw from service provision due to the imposition of fee reductions, such as in the Highlands of Scotland, but we have done all possible to make such a withdrawal painless and to support our community. Our shops are seeing high demand, but we have at times found donated goods more difficult to secure. To counter this we have expanded our range of new goods and increased our shop portfolio to bring us into new areas. We have also launched cutting edge commercial projects, such as “pop-up” shops in vacant high street slots. Fundraising is a challenge at present, but our diversification of income streams continues and our investment in local community fundraising remains a success. We are applying careful research techniques to ensure all our fundraising investments are targeted to the areas of maximum return. We have secured new European Funding for projects delivered by Sense International and our fundraising for overseas projects continues to improve. In general 2011/12 has been a success for the Sense family. We are reaching more people than ever and have grown our engagement with our stakeholders in a number of ways. The strong financial controls we have exercised over income and expenditure helped us achieve our financial targets. The decrease in the pension scheme deficit has resulted in an unbudgeted surplus. Expenditure Expenditure on our charitable activities in 2011/12 was £61.0m. This represented a decrease of £3.9m on the previous year, with £3.7m of this being the ending of some commissioned service provision in Scotland and the rest being efficiency savings. Most of our contracted expenditure is working with adults and relates to the provision of residential and community based services. We spent £2.3m (£2.7m 2011) working with children and families and £1.3m (£1.3m 2011) working with older people. Work on campaigning and raising awareness cost £1.4m (£1.3m 2011), publicity costs were £712k (£589k 2011) and on quality improvements and staff development we spent £480k (£503k 2011). Governance costs of £66k were £3k more than last year. Income Total income amounted to £78.4m a decrease of £3.9m on the previous year. This year Sense had a reduction in fees and allowances, paid by statutory authorities, which fell to £53.8m in total. This reduction did not see Sense working with fewer people, but we have had significant pressure placed on our fee income as funding cuts take hold. However, Sense has maintained 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 £11.1m representing a decrease of £0.7m on the previous year which reflects the general downturn. Income from our shops reached £11.7m, an increase of £0.3m 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 liabilities decreased by £4.1m and reduced the overall liability to £2.4m. 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 over time and to ensure that sufficient funds are available to meet pension payments as and 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 £2.6m. The superannuation scheme increased this by £3.7m resulting in an overall positive net movement in funds of £6.3m. 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 • planning for 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 by each member of the Sense Family to suit their individual needs and circumstances. Sense Scotland have set a target of 12 weeks turnover, as this provides for operational security. The reserves target for Sense International has been set at six months worth of expenditure, as SI work with numerous partner organisations on long term projects it is vital that they can fulfil all commitments made. Sense sets its’ target based on working capital requirements, the need to cover pensions deficits and several other factors. This year Sense also recognised the need to increase its’ reserve holdings in the medium term as we prepare for extensive planned capital expenditure over the next three to five years. This capital expenditure will incorporate a new centre in Belfast, a refurbishment and potential expansion of services at the Anne Wall Centre in Barnet and a project to replace our current rented accommodation in the Midlands by providing a new integrated service provision and office base. This has lead Sense to set a target of £17m, with £9.5m of this being held as Designated Funds against the projects previously mentioned. This means that the Group Reserves Target at 31 March 2012 was £21.9m. On the same date, the free reserves in the unrestricted funds was £18.5m. 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 been revising its terms and conditions for all staff. The results of this consultation are likely to lead to the introduction of a standard 37.5 hour working week. To assist us in this work we established a staff forum that will be developed over the coming years. 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 whistle blowing policy. The development of our workforce through training and increased engagement will play an important part in our strategy for 2013 onward. 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 19th September 2012 Council members Council members, showing changes during year 2011 -12 John Crabtree OBE, Chairman Liz Booth (Vice Chair and Chair of Nominations Committee) Hugh Gareth Jones MBE JP (Treasurer and Chair of the Finance Committee until June 2012) Nick Keegan, Treasurer (elected as a Trustee October 2011) Appointed as Treasurer and Chair of the Finance Committee In June 2012 Ian Harley (Chair of Audit Committee) Gini Bartlett MBE (co-opted December 2011) Jim McManus (co-opted from Sense NI) Jane McNally (elected October 2011) Dave Pearson David Reeves Roy Staines Duncan Tannahill (co-opted from Sense Scotland) Sue Turner (elected October 2011) Oliver Walder Gillian Wood Sense Scotland and Sense International have their own boards of Trustees: Sense Scotland Roy Cox, Chairman Neil Farquharson, Vice Chairman Douglas Smart, Treasurer David Newton Duncan Tannahill Isobel Allan Norman Ritchie Gary Simpson (elected to the Board at 2011 AGM) Eileen Henighen (elected to the Board at 2011 AGM) Sense International Jeremy Charles (Chair – resigned 29/09/11) Sue Turner Sunil Sheth (Chair – appointed 29/09/11) 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 2012 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 Council’s Responsibilities Statement set out on page10, 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. 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 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 2012, and of the group’s incoming resources and application of resources, including its income and expenditure and the group’s cash flows, for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006. 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 require us to report to you if, in our opinion: • adequate accounting records have not been kept by the parent charitable company 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 September 2012 Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2012 General Designated Restricted Endowment Total Total Note Funds Funds Funds Funds 2012 2011 £ £ £ £ £ £ Incoming resources Incoming resources from generated funds Fundraising income 6,394,761 629,931 952,811 - 7,977,503 8,159,250 Legacies receivable 2,218,630 - 11,500 - 2,230,130 2,557,813 Fundraising grants receivable 1 130,176 - 765,658 - 895,834 1,152,311 Shops income 11,723,538 - - - 11,723,538 11,371,710 Investment income 2 428,896 - 75 - 428,971 177,629 Other income 3 314,985 - 6,144 - 321,129 507,088 Incoming resources from charitable activities Fees and allowances 53,440,801 - 398,720 - 53,839,521 57,176,661 Statutory grants receivable 1 393,410 - 544,351 - 937,761 1,089,088 Net gain on disposal of fixed assets 5 - - - - - 69,492 Total incoming resources 75,045,197 629,931 2,679,259 - 78,354,387 82,261,042 Resources expended Cost of generating funds: Fundraising costs 3,826,298 303,989 661 - 4,130,948 3,696,766 Shops costs 10,492,780 13,119 - - 10,505,899 10,309,806 Total cost of generating funds 14,319,078 317,108 661 - 14,636,847 14,006,572 Charitable activities: Work with adults 36,871,836 212,323 388,309 8,623 37,481,091 37,499,207 Work with children 2,165,220 75,920 101,938 - 2,343,078 2,696,284 Work with older people 1,264,344 6,845 770 - 1,271,959 1,282,567 Work in Scotland 14,589,229 142,305 1,080,777 - 15,812,311 19,553,192 International work 222,966 42,839 1,106,008 - 1,371,813 1,397,647 Campaigns and awareness 1,158,422 151,507 120,813 - 1,430,742 1,274,168 Publicity 635,957 75,707 282 - 711,946 588,723 Quality and staff development 478,845 472 298 - 479,615 502,514 Governance 4 66,204 - - - 66,204 63,314 57,453,023 707,918 2,799,195 8,623 60,968,759 64,857,616 Total resources expended 71,772,101 1,025,026 2,799,856 8,623 75,605,606 78,864,188 Net incoming resources/(resources expended) before transfers 3,273,096 (395,095) (120,597) (8,623) 2,748,781 3,396,854 Transfers between funds 17 (10,199,447) 9,903,545 295,902 - - Net incoming resources/(resources expended) before revaluations (6,926,351) 9,508,450 175,305 (8,623) 2,748,781 3,396,854 Gains and losses on revaluation and disposal of fixed assets 5 (180,957) - - - (180,957) 462,212 Actuarial gain/(loss) on defined benefit pension scheme 9 3,740,000 - - - 3,740,000 9,652,000 Net movements in funds (3,367,308) 9,508,450 175,305 (8,623) 6,307,824 13,511,066 Fund balances brought forward at 1 April 2011 18,224,832 9,666,036 7,210,080 456,016 35,556,964 22,045,898 Fund balances carried forward at 31 March 2012 17,18 14,857,524 19,174,486 7,385,385 447,393 41,864,788 35,556,964 The notes on pages 33 to 58 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. Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 Registered no. 1825301 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2012 Note 31 March 2012 31 March 2011 £ £ Fixed assets Tangible assets 11 20,612,518 20,926,923 Investments 12 4,332,968 4,539,874 24,945,486 25,466,797 Current assets Stocks of goods for resale 129,211 190,227 Debtors 13 5,564,372 6,231,427 Cash at bank and in hand 18,998,542 15,833,722 24,692,125 22,255,376 Creditors (amounts falling due within one year) 14 (4,602,895) (4,849,214) Net current assets 20,089,230 17,406,162 Total assets less current liabilities 45,034,716 42,872,959 Creditors (amounts falling due after more than one year) 15 (768,928) (822,995) Net assets excluding pension liability 44,265,788 42,049,964 Defined benefit pension scheme liability 9 (2,401,000) (6,493,000) Net assets including pension liability 41,864,788 35,556,964 Funds and Reserves Restricted funds 17,18 7,385,385 7,210,080 Endowment fund 17,18 447,393 456,016 Unrestricted funds General fund (including pension reserve of £2,401,000 adverse (2011: £6,493,000 adverse) 14,857,524 18,224,832 Designated funds 17,18 19,174,486 9,666,036 Total unrestricted funds 34,032,010 27,890,868 Total funds and reserves 41,864,788 35,556,964 The notes on pages 33 to 58 form part of these accounts. Nick Keegan Treasurer Approved by Council on 19th September 2012 Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 Registered no. 1825301 COMPANY BALANCE SHEET AS AT 31 MARCH 2012 Note 31 March 2012 31 March 2011 £ £ Fixed assets Tangible assets 11 14,395,374 14,540,135 Investments 12 4,361,286 4,568,192 18,756,660 19,108,327 Current assets Stocks of goods for resale 129,211 190,227 Debtors 13 4,176,258 4,024,294 Cash at bank and in hand 12,336,825 12,018,318 16,642,294 16,232,839 Creditors (amounts falling due within one year) 14 (3,847,624) (4,078,548) Net current assets 12,794,670 12,154,291 Total assets less current liabilities 31,551,330 31,262,618 Creditors (amounts falling due after more than one year) 15 (36,000) (45,000) Net assets 31,515,330 31,217,618 Defined benefit pension scheme liability 6 (2,401,000) - Net assets including pension liability 29,114,330 31,217,618 Funds and Reserves Restricted funds 17,18 4,600,937 4,576,432 Endowment fund 17,18 447,393 456,016 Unrestricted funds General fund (including pension reserve of £2,401,000 adverse (2011: £Nil)) 17,18 10,857,443 22,042,162 Designated funds 17,18 13,208,557 4,143,008 Total funds and reserves 29,114,330 31,217,618 The notes on pages 33 to 58 form part of these accounts. Nick Keegan Treasurer Approved by Council on 19th September 2012 Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2012 2012 2011 £ £ Income of continuing operations 77,925,416 82,013,921 Total expenditure of continuing operations (75,541,461) (78,223,016) Operating surplus 2,383,955 3,790,905 Income from fixed asset investments 159,227 97,716 Gain on disposal of tangible fixed assets (6,302) 69,492 Interest receivable and similar income 269,744 79,913 Interest payable and similar charges (47,843) (62,172) Other finance charge (10,000) (579,000) Net income for the year 2,748,781 3,396,854 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 27 to 45 provides full information on the movements during the year on all the Association’s funds. The notes on pages 33 to 58 form part of these accounts. Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2012 2012 2011 Note £ £ Net cash inflow from operating activities 22 4,345,600 5,222,430 Returns on investment and servicing of finance Investment income received 428,971 177,629 Interest paid (52,530) (50,307) Interest element of finance lease payments - (11,865) 376,441 115,457 Capital expenditure Purchase of investments - (4,072,008) Purchase of tangible fixed assets (1,497,157) (1,232,156) Sale of tangible fixed assets 28,844 108,636 (1,468,313) (5,195,528) Financing Bank and other loans repaid (58,451) (98,826) Capital element of finance lease payments (30,457) (80,946) (88,908) (179,772) Increase/(decrease) in cash 23,24 3,164,820 (37,413) The notes on pages 33 to 58 form part of these accounts. Council’s report and accounts for the year ended 31 March 2012 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 2011, 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 long leasehold improvements -over the remaining life of the lease 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. Council’s report and accounts for the year ended 31 March 2012 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. 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. Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2012 1 Grants receivable Sense – Statutory Grants receivable 2012 2011 £ £ Gwynedd Council / Cyngor sir ynys mon (2,101) 2,101 Carmarthenshire 8,000 8,000 Powys Supporting People 12,988 12,988 Lincolnshire CC C0388 - 146,278 Department of Health - Older Persons Partnership Worker 14,357 51,794 Suffolk Supporting People Grants 53,024 63,864 Suffolk Stowuplands Flexi 8,400 44,829 Suffolk Stowuplands Core - 9,691 ILSS Step Project Peterborough CC - 17,300 LAAW Aiming High Cambridgeshire CC 18,500 18,500 LAAW Aiming High Cambridgeshire CC 21,879 49,121 Norfolk County Council SA Funds 2010/11 12,500 15,175 Northern Ireland Housing Exec 26,138 26,138 Western Health and Social Care Trust 2010/11 14,814 15,190 Newtown Abbey Surestart 61,171 42,432 Skills for Care 61,520 23,380 Cornwall County Council - GOT Project 73,878 59,310 South Gloucestershire Childrens Services Grant 2,929 2,929 Rotherham 2,265 25,828 carried forward 390,262 616,348 Council’s report and accounts for the year ended 31 March 2012 2012 2011 £ £ brought forward 390,262 616,348 Scotland - Statutory Grants Receivable Scottish Government (Malawi Project) 83,135 111,594 Scottish Local Authorities and Health Boards (towards services) 3,148 20,724 Scottish Executive (Children, Young People & Social Care Group Unified Vol. Sector Fund) 66,785 66,785 Tayside NHS 10,700 5,350 NHS Greater Glasgow (Innovation projects) 160,923 160,923 Glasgow City Council (Threads) 8,167 9,933 Scottish Executive (VSDF Award) 35,000 34,000 Enterprise Growth Fund Touchbase 2 170,545 ­Other 9,096 44,931 Total Statutory Grants Receivable 937,761 1,089,088 Sense - Charitable Grants Receivable Department of Health (Rubella Project) 8,072 50,731 Northern Ireland DHSS (towards Services in Northern Ireland - Core Grant) 25,038 25,038 Northern Ireland DHSS NVQ Funding 12,588 8,740 Welsh National Assembly (towards Organisational Development - Core Grant) 89,300 94,000 A & C Missionfish 3,250 - carried forward 138,203 178,509 All grants given for a specific purpose have been expended entirely on that purpose. 2012 2011 £ £ brought forward 138,203 178,509 Sense Scotland - Charitable Grants Receivable Big Lottery Fund (One giant leap) 55,148 55,148 Big Lottery Fund (Reaching out) 83,252 96,580 Peoples Postcode Lottery 9,108 - Creative Scotland (National Lottery Grant) - 45,000 Path to Health 9,750 13,200 Scottish Arts Council (National lottery Grant) - Music 5,877 13,650 Scottish Arts Council (National lottery Grant) - Flexible Funds for Art - 50,000 International Department for International Development (Developing a sustainable infrastructure for the inclusion of deafblind people in Bangladesh 70,493 83,132 European Commission Europe Aid Co-operation Office (Developing a sustainable infrastructure for the integration of deafblind in India 157,839 113,880 European Commission EuropeAid Co-Operation Office (Developing model services and a sustainable infrastructure for deafblind people in Peru 5,667 200,379 European Commission EuropeAid Co-Operation Office (Promoting Access to education for deafblind and multi-sensory impaired children in Tanzania) 34,959 21,496 Big Lottery Fund (Promoting the Social Inclusion of Deafblind People in Latin America) 53,965 107,218 States of Jersey Overseas Aid Committee (Work in Tanzania) 14,907 17,796 European Commission EuropeAid Co-Operation Office (Promoting Access to education for deafblind and multi-sensory impaired children in East Africa) 184,023 155,536 State of Jersey Overseas Aid Committee (work in East Africa) 23,178 ­ State of Jersey Overseas Aid Committee (work in Peru) 18,454 ­ Others 30,966 787 Total Charitable Grants Receivable 895,834 1,152,311 Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 2 Investment income 2012 2011 £ £ Bank interest 269,744 79,913 Dividends 159,227 97,716 428,971 177,629 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 2012 2011 £ £ £ £ Fundraising 3,940,124 190,824 4,130,948 3,696,766 Trading 10,391,177 114,722 10,505,899 10,309,806 Work with adults 32,449,061 5,032,030 37,481,091 37,499,207 Work with children 2,031,643 311,435 2,343,078 2,696,284 Work with older people 1,103,288 168,671 1,271,959 1,282,567 Campaigning and awareness raising 1,261,104 169,638 1,430,742 1,274,168 Publicity 630,464 81,482 711,946 588,723 Quality and staff development 425,276 54,339 479,615 502,514 Work in Scotland 14,592,092 1,220,219 15,812,311 19,553,192 International work 1,008,205 363,608 1,371,813 1,397,647 Governance 66,163 41 66,204 63,314 67,898,597 7,707,009 75,605,606 78,864,188 Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 Sense, The National Deafblind and Rubella Association Analysis of support costs apportioned Human Finance Facilities Management Resources and IT Communications 2012 2011 £ £ £ £ £ £ £ Fundraising 14,732 13,571 71,618 70,638 20,265 190,824 470,867 Trading - 15,685 78,265 20,772 - 114,722 147,646 Work with adults 388,472 357,863 1,888,577 1,862,723 534,395 5,032,030 4,784,002 Work with children 24,043 22,148 116,885 115,285 33,074 311,435 233,164 Work with older people 13,021 11,995 63,304 62,438 17,913 168,671 164,251 Campaigning and awareness 13,096 12,064 63,667 62,796 18,015 169,638 143,001 raising Publicity 6,290 5,795 30,581 30,163 8,653 81,482 59,084 Quality and staff 4,195 3,864 20,394 20,115 5,771 54,339 53,458 development Work in Scotland - 530,830 298,124 391,265 - 1,220,219 775,778 International work - 86,424 277,184 - - 363,608 113,263 Governance - - - 41 - 41 - 463,849 1,060,239 2,908,599 2,636,236 638,086 7,707,009 6,944,514 Support costs have been apportioned on the basis of salary costs. Analysis of governance costs 2012 2011 £ £ Internal audit 6,804 6,671 External audit fees 42,400 39,950 Strategic management costs 7,200 6,500 Trustees’ expenses 9,800 10,193 66,204 63,314 Council’s report and accounts for the year ended 31 March 2012 5 Gains/(losses) on tangible fixed assets and investments 2012 2011 £ £ Incoming resources from charitable activities Net gain on sale of tangible fixed assets 69,492 Gains and losses on revaluation and disposal of fixed assets Net (loss) on sale of tangible fixed assets (6,302) -Unrealised (loss)/gain on revaluation of listed investments (174,655) 462,212 (180,957) 462,212 6 Net movement in funds The net movement in funds is stated after charging: 2012 2011 £ £ Auditors’ remuneration – audit services 42,400 39,950 Depreciation - owned assets 1,744,071 1,675,572 - finance leased assets 32,345 56,588 Operating lease rentals 3,391,001 3,390,419 Interest payable on bank loans 47,843 50,307 Interest payable on finance leases 4,687 11,865 Other finance charge - pension scheme 10,000 579,000 7 Employees’ remuneration 2012 2011 £ £ Wages and salaries 46,401,234 48,591,273 Social security costs 3,548,448 3,773,228 Other pension costs 1,759,769 1,794,776 Agency labour 1,177,575 1,688,264 52,887,026 55,847,541 The average number of persons employed by the charity was 3,130 (2011: 3,264). Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 Employees earning over £60,000 were as follows 2012 2011 £60,000 - £70,000 2 0 £70,000 - £80,000 2 3 £80,000 - £90,000 3 4 £90,000 - £100,000 0 0 £100,000 - £110,000 2 2 £110,000 - £120,000 1 1 £150,000 - £160,000 1 0 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 £9,800 (2011: £10,193) in respect of reimbursement of expenses incurred. Council’s report and accounts for the year ended 31 March 2012 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 2011. For the period to 31 March 2013 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 2012 At 31 March 2011 % pa % pa Rate of inflation – RPI 3.3 3.5 Rate of inflation – CPI 2.5 2.7 Rate of increase in salaries 2.0 4.5 Rate of increase for pensions in payment 2.5 2.7 Discount rate 5.0 5.5 The assumed life expectations from age 65 were as follows: 2012 2011 Years Years Retiring today - Men 21.6 20.5 - Women 24.2 23.8 Retiring in 20 years - Men 23.7 22.5 - Women 26.2 25.6 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 Long-term return return expected at Value at expected at Value at 31 March 31 March 31 March 31 March 2011 2011 2010 210 % £’000 % £’000 Equities 6.3 20,166 7.4 18,588 Target return funds 4.5 3,315 4.5 3,233 Alternative assets 5.3 3,867 6.4 3,771 Other bonds --5.5 539 Cash 3.0 276 3.0 808 5.9 27,624 6.7 26,939 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 2012 were measured in accordance with the requirements of FRS 17: 2012 2011 £’000 £’000 Total market value of assets 27,624 26,939 Present value of Scheme liabilities (30,025) (33,432) Net pension liability (2,401) (6,493) Council’s report and accounts for the year ended 31 March 2012 Reconciliation of present value of scheme liabilities 2012 2011 £’000 £’000 1 April 2011 33,432 40,180 Current service cost 611 1,384 Curtailments 6 24 Interest cost 1,840 2,276 Benefits paid (777) (1,046) Contributions by members 215 342 Actuarial (gain)/loss (5,302) (9,728) 31 March 2012 30,025 33,432 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 29,298 30,025 30,772 Projected service cost 458 475 493 Adjustment to mortality age rating assumption +1 year None -1 year Present value of total obligation 29,054 30,025 28,804 Projected service cost 453 475 415 Reconciliation of fair value of scheme assets 2012 2011 £’000 £’000 1 April 2011 26,939 24,806 Expected return on scheme assets 1,830 1,697 Contributions by members 215 342 Contributions by the employer 979 1,216 Actuarial gain/(loss) (1,562) (76) Benefits paid (777) (1,046) 31 March 2012 27,624 26,939 The following components of the pensions charge have been recognised in the statement of financial activities in the year to 31 March 2012: 2012 2011 £’000 £’000 Sense, The National Deafblind and Rubella Association Amounts charged to the statement of financial activities: Current service cost 611 1,384 Curtailment and Settlements 6 24 617 1,408 Other finance (income)/cost: Interest cost 1,840 2,276 Expected return on assets (1,830) (1,697) Net charge to other finance cost/(income) 10 579 Total statement of financial activities charge 627 1,987 Actuarial gain/(loss) recognised: Actual return less expected return on pension scheme assets (1,562) (76) Experience (gain)/loss on pension scheme liabilities 4,509 2,345 Gain from the change in pension increase policy - 4,356 Change in financial assumptions underlying the present value of the scheme liabilities 793 3,027 Total actuarial gain/(loss) recognised 3,740 9,652 Council’s report and accounts for the year ended 31 March 2012 History of experience gains and losses 2012 2011 2010 2009 2008 Defined benefit obligation (£’000) (30,025) (33,432) (40,180) (23,868) (24,766) Plan assets (£’000) 27,624 26,939 24,806 18,493 21,880 Deficit (£’000) (2,401) (6,493) (15,374) (5,375) (2,886) (Gain)/loss on scheme assets: Amount (£’000) (1,562) (76) 4,301 (6,089) (2,086) % of Scheme assets at end of year -5.7% -0.3% 17.3% -32.9% -9.5% Experience (gain)/loss on scheme liabilities: Amount (£’000) 4,509 2,345 10 997 882 % of Scheme liabilities at end of year 15.0% 7.0% 0% 4.2% 3.6% Total actuarial (gain)/ loss recognised: Amount (£’000) 3,740 9,652 10,206 2,784 (3,634) % of Scheme liabilities at end of year 12.5% 28.9% 25.4% 11.7% (14.7%) 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 15 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 £55,820,610 (2011 £56,718,996) and its net incoming resources for the year were £830,670 (2011: £2,513,464). Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 The company made an unrealised loss on investments of £180,957 (2011: gain £462,212), recognised a defined benefit pension scheme deficit of £6,493,000 in May 2011 on which an actuarial gain of £3,740,000 arose in the year. The company’s net decrease in funds was £2,103,288 (2011: increase £2,975,676). The Trustees decided to recognise the whole of the defined benefit pension scheme deficit (note 9), within the company following the withdrawal of the employees of Sense Scotland from the group’s scheme in May 2011. The defined benefit pension scheme deficit recognised at the date the Sense Scotland employees left the scheme has been taken to be £6,493,000 the amount of the group’s deficit at 31 March 2011. The Trustees consider that the amount at the date of the withdrawal was not materially different. 11 Tangible assets Group Long Short leasehold leasehold Furniture, Freehold improve- improve- fixtures Motor property ments ments & fittings vehicles Total £ £ £ £ £ £ Cost At 1 April 2011 15,591,695 4,464,456 772,669 8,691,729 3,381,394 32,901,943 Additions 107,883 -134,573 940,388 314,313 1,497,157 Disposals --(44,467) (201,726) (302,227) (548,420) At 31 March 2012 15,699,578 4,464,456 862,775 9,430,391 3,393,480 33,850,680 Depreciation At 1 April 2011 1,883,874 401,031 503,583 6,770,524 2,416,008 11,975,020 Charge for the year 275,506 78,199 77,995 873,659 471,057 1,776,416 Disposals - - (22,471) (194,585) (296,218) (513,274) At 31 March 2012 2,159,380 479,230 559,107 7,449,598 2,590,847 13,238,162 Net book amounts At 31 March 2012 13,540,198 3,985,226 303,668 1,980,793 802,633 20,612,518 At 31 March 2011 13,707,821 4,063,425 269,086 1,921,205 965,386 20,926,923 Fixed assets include assets acquired under finance leases. The gross book value of these assets is £Nil (2011: £226,352), the net book value is £Nil (2011: £32,045). Council’s report and accounts for the year ended 31 March 2012 Company Freehold property £ Long leasehold improve- ments £ Short leasehold improve- ments £ Furniture, fixtures & fittings £ Motor vehicles £ Total £ Cost At 1 April 2011 9,297,448 3,887,118 765,802 8,025,958 3,136,397 25,112,723 Additions 107,883 - 134,573 909,581 294,256 1,446,293 Intra group transfer - - - 36,578 - 36,578 Disposals - - (37,600) (45,298) (302,227) (385,125) At 31 March 2012 9,405,331 3,887,118 862,775 8,926,819 3,128,426 26,210,469 Depreciation At 1 April 2011 1,448,585 189,801 496,716 6,182,551 2,254,935 10,572,588 Charge for the year 149,621 62,213 77,995 831,299 439,499 1,560,627 Intra group transfer - - - 31,859 - 31,859 Disposals - - (15,604) (38,157) (296,218) (349,979) 31 March 2012 1,598,206 252,014 559,107 7,007,552 2,398,216 11,815,095 Net book amounts At 31 March 2012 7,807,125 3,635,104 303,668 1,919,267 730,210 14,395,374 At 31 March 2011 7,848,863 3,697,317 269,086 1,843,407 881,462 14,540,135 Fixed assets include assets acquired under finance leases. The gross book value of these assets is £Nil (2011: £226,352), the net book value is £Nil (2011: £32,045). Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 12 Investments Group 2012 2011 £ £ Fixed asset investments: Listed in UK (at market value) 4,332,968 4,539,874 Movements in the value of fixed asset investments listed in the UK can be explained as follows: 2012 2011 £ £ Opening market value 4,539,874 5,654 Management charges (32,251) ­Purchases of investments -4,072,008 Unrealised gain/(loss) on investments held (174,655) 462,212 Closing market value 4,332,968 4,539,874 Quoted securities are represented by: 2012 2011 £ £ UK Equity shares and funds 480 714 UK Investment trusts and unit trusts 4,332,488 4,539,160 4,332,968 4,539,874 The quoted securities include Alpha CIF for Endowments, income units, representing 99.9% of the portfolio. Company 2012 2011 £ £ Fixed asset investments: Listed in UK (at market value) 4,331,286 4,538,192 Paid up shares: 100% holding in Helping Sense Limited 30,000 30,000 4,361,286 4,568,192 Council’s report and accounts for the year ended 31 March 2012 Movements in the market value of fixed asset investments listed in the UK can be explained as follows: 2012 2011 £ £ Opening market value 4,538,192 3,972 Management charges (32,251) - Purchase of investments - 4,072,008 Unrealised gain on investments held (174,655) 462,212 Closing market value 4,331,286 4,538,192 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. The trustees believe that the carrying value of the investment is supported by the underlying net assets. Quoted securities are represented by: 2012 2011 £ £ UK Equity shares and funds 480 714 UK Investment trusts and unit trusts 4,330,806 4,537,478 4,331,286 4,538,192 The quoted securities include Alpha CIF for Endowments, income units, representing 99.9% of the portfolio. 13 Debtors Group 2012 2011 £ £ Trade debtors 2,537,690 3,708,755 Taxation recoverable 179,679 123,669 Other debtors 519,043 497,714 Prepayments 2,327,960 1,901,289 5,564,372 6,231,427 No amounts included above fall due after more than one year. Company 2012 2011 £ £ Trade debtors 1,202,672 1,405,048 Amounts owed by group undertakings 262,248 228,065 Taxation recoverable 179,679 123,669 Other debtors 320,788 424,468 Prepayments 2,210,871 1,843,044 4,176,258 4,024,294 No amounts included above fall due after more than one year. 14 Creditors (amounts falling due within one year) Group 2012 2011 £ £ Bank loans (note 15) 45,067 42,451 Other loans 9,000 16,000 Obligations under finance lease contracts (note 15) - 30,457 Trade creditors 938,352 1,072,635 Taxation and social security 991,039 1,054,951 Accruals and other creditors 2,561,061 2,581,468 Deferred income 58,376 51,252 4,602,895 4,849,214 Company 2012 2011 £ £ Other loans 9,000 9,000 Obligations under finance lease contracts (note 15) - 30,457 Trade creditors 930,857 1,068,022 Taxation and social security 723,229 750,981 Accruals and other creditors 2,184,538 2,220,088 3,847,624 4,078,548 Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 15 Creditors (amounts falling due after more than one year) Group 2012 2011 £ £ Bank loans 732,928 777,995 Other loans 36,000 45,000 768,928 822,995 Company 2012 2011 £ £ Other loans 36,000 45,000 The bank loan is in respect of 43 Middlesex Street, Glasgow and Fleuchar Street, Dundee which was financed by HBOS who have first charge on the properties. 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: 2012 2011 £ £ Within one year 45,067 42,451 Between one and two years 45,067 42,451 Between two and five years 164,741 197,629 Over five years 523,120 537,915 777,995 820,446 At 31 March 2012 the Charity had obligations under finance leases as set out below: Group and company 2012 2011 £ £ Amounts payable: Within one year - 30,457 In two to five years - - - 30,457 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 2011 £ Income, gains, losses and transfers in £ Resources expended and transfers out £ Balance at 31 March 2012 £ General Total general 18,224,832 78,228,092 81,595,400 14,857,524 Designated Working with adults 3,172,171 5,953,105 904,482 8,220,794 Working with children 218,495 4,354,600 55,533 4,517,562 Working with older people - 1,600 - 1,600 Campaigns and publicity 607,342 61,941 360,079 309,204 Quality, training and staff development 145,000 77,204 62,807 159,397 Work in Scotland 5,523,028 372,347 (13,393) 5,908,768 International work - 100,000 42,839 57,161 Total designated 9,666,036 10,920,797 1,412,347 19,174,486 Restricted Working with adults 3,731,582 256,363 239,171 3,748,774 Working with children 716,435 346,279 310,016 752,698 Working with older people 127,637 - 40,740 86,897 Campaigns & awareness - 31,133 30,257 876 Quality, training and staff development 778 13,200 2,287 11,691 Work in Scotland 2,406,184 1,208,886 934,724 2,680,346 International work 227,464 856,658 980,019 104,103 Total restricted 7,210,080 2,712,519 2,537,214 7,385,385 Endowment Working with adults 456,016 - 8,623 447,393 Total endowment 456,016 - 8,623 447,393 Total funds 35,556,964 91,861,408 85,553,584 41,864,788 Council’s report and accounts for the year ended 31 March 2012 Company Income, Resources gains, expended Balance at Balance at losses and and 31 March 1 April 2011 transfers in transfers out 2012 £ £ £ £ General Income, gains, losses and transfers in, excluding pension deficit 57,384,034 Pension deficit (note 10) (6,493,000) Total general 22,042,162 50,891,034 62,075,753 10,857,443 Designated Working with adults 3,172,171 5,953,105 904,482 8,220,794 Working with children 218,495 4,354,600 55,533 4,517,562 Working with older people - 1,600 - 1,600 Campaigns and publicity 607,342 61,941 360,079 309,204 Quality, training and staff development 145,000 77,204 62,807 159,397 Total designated 4,143,008 10,448,450 1,382,901 13,208,557 Restricted Working with adults 3,731,582 256,364 239,171 3,748,775 Working with children 716,435 346,279 310,016 752,698 Working with older people 127,637 - 40,740 86,897 Campaigns & awareness - 31,133 30,257 876 Quality, training and staff development 778 13,200 2,287 11,691 Total restricted 4,576,432 646,976 622,471 4,600,937 Endowment Working with adults 456,016 - 8,623 447,393 Total endowment 456,016 - 8,623 447,393 Total funds 31,217,618 61,986,460 64,089,748 29,114,330 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 Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 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 2012 were analysed between the funds as follows: Group General Designated Restricted Endowment Total £ £ £ £ £ Tangible fixed assets 10,975,854 4,542,402 4,646,869 447,393 20,612,518 Investments 332,968 4,000,000 --4,332,968 Net current assets 6,718,630 10,632,084 2,738,516 -20,089,230 Long term liabilities (768,928) - - - (768,928) Pension liability (2,401,000) - - - (2,401,000) Total 14,857,524 19,174,486 7,385,385 447,393 41,864,788 Company General Designated Restricted Endowment Total £ £ £ £ £ Tangible fixed assets 10,692,938 - 3,255,043 447,393 14,395,374 Investments 361,286 4,000,000 - - 4,361,286 Net current assets 2,240,219 9,208,557 1,345,894 - 12,794,670 Long term liabilities (36,000) - - - (36,000) Pension liability (2,401,000) - - - (2,401,000) Total 10,857,443 13,208,557 4,600,937 447,393 29,114,330 Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 19 Capital commitments Capital expenditure authorised and contracted for but not provided for amounted to £Nil (2011: £100,000). 20 Contingent liability Contingent liabilities of £1,196,000 (2011: £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 2012 the Charity had annual commitments under non-cancellable operating leases as set out below: 2012 2011 Group Land and Land and buildings Other buildings Other £ £ £ £ Operating leases which expire: Within one year 325,620 14,163 363,695 17,066 In two to five years 1,087,316 84,712 1,203,617 71,349 After five years 1,462,974 - 1,407,354 - 2,875,910 98,875 2,974,666 88,415 2012 2011 Company Land and Land and buildings Other buildings Other £ £ £ £ Operating leases which expire: Within one year 212,493 4,840 259,451 6,079 In two to five years 966,343 84,712 1,055,137 71,349 After five years 1,396,599 - 1,310,729 - 2,575,435 89,552 2,625,317 77,428 22 Reconciliation of net incoming resources to net cash inflow from operating activities 2012 2011 £ £ Net incoming resources before revaluation 2,748,781 3,396,854 Difference between pension charge and cash contributions (352,000) 771,000 Investment income received (428,971) (177,629) Interest paid 52,530 62,172 Investment management charges 32,251 ­Depreciation 1,776,416 1,732,160 (Profit) on sale of tangible fixed assets -(69,492) (Increase)/decrease in stocks 61,016 (108,381) Decrease/(increase) in debtors 667,055 124,685 (Decrease)/increase in creditors (211,478) (508,939) Net cash inflow from operating activities 4,345,600 5,222,430 23 Reconciliation of net cash flow to movement in net liquid resources 2012 2011 £ £ Increase/(decrease)/ in cash in the year 3,164,820 (37,413) Cash outflow/(inflow) from loans and lease financing 88,908 179,772 Changes resulting from cash flows 3,253,728 142,359 Net liquid resources at 1 April 2011 14,921,819 14,779,460 Net liquid resources at 31 March 2012 18,175,547 14,921,819 Sense, The National Deafblind and Rubella Association Council’s report and accounts for the year ended 31 March 2012 24 Analysis of changes in net liquid resources At At 1 April Cash Other 31 March 2011 flows changes 2012 £ £ £ £ Cash at bank and in hand 15,833,722 3,164,820 - 18,998,542 Debt due within one year (58,451) 58,451 (54,067) (54,067) Debt due after one year (822,995) - 54,067 (768,928) Finance leases (30,457) 30,457 - 14,921,819 3,253,728 - 18,175,547 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 2012 are shown below: Sense Scotland 2012 2011 £ £ Incoming resources Resources expended Net movement in funds 19,761,524 (17,890,608) 1,870,916 22,862,354 (21,627,070) 1,235,284 Assets Liabilities Funds 13,476,667 (1,533,587) 11,943,080 11,618,464 (1,546,299) 10,072,165 Sense International 2012 2011 £ £ Incoming resources 1,547,395 1,806,492 Resources expended (1,500,198) (1,386,750) Net movement in funds 47,197 419,742 Assets 1,059,005 997,082 Liabilities (251,627) (236,901) Funds 807,378 760,181 Coventry Society for the Blind 2012 2011 £ £ Incoming resources 2 6,536 Resources expended (2) (7,172) Net movement in funds - (636) Assets - 27,576 Liabilities - (27,576) Funds - - Council’s report and accounts for the year ended 31 March 2012 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 2012 is shown below: Helping Sense Limited 2011 2010 £ £ Turnover 2,014,413 1,584,376 Cost of Sales (499,909) (367,517) Gross Profit 1,514,504 1,216,859 Operating Expenses (1,263,963) (1,033,319) Net profit 250,541 183,540 Assets 282,641 215,540 Liabilities (252,641) (185,540) Net assets 30,000 30,000 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 Andrew Mitchell Christian C.T. Awareness BBC Children in Need Birkdale Trust for Hearing Impaired Ltd C H K Charities Ltd Department of Health Fairfield Charitable Trust G J W Turner Trust Gwyneth Forrester Trust Hadley Trust Help A Capital Child Iron Mountain Joseph Strong Frazer Trust P F Charitable Trust SFIA Educational Trust Smith Charitable Trust The 29th May 1961 C.T. The Albert Hunt Trust The Annie Tranmer Charitable Trust The Aquarius Charitable Foundation The Ballinger Charitable Trust The Blair Foundation The Boltini Trust The Boshier-Hinton Foundation The Childwick Trust The Connie & Albert Taylor Charitable Trust The Constance Travis Charitable Trust The David Thomas Charitable Trust The Douglas Turner Trust The Dragonfly Charitable Trust The E D Charitable Trust The Eveson Charitable Trust The Geoff and Fiona Squire Foundation The GMC Trust The Janet Nash Charitable Settlement The Jessie Spencer Trust The Lady Hind Trust The Michael Cornish Charitable Trust The Misses Barrie Charitable Trust The Open Gate Trust The Peacock Charitable Trust The Peter Storrs Trust The Princess Anne’s Charities The Sobell Foundation The Tanner Trust The Thomas J Horne Memorial Trust Sense International Alchemy Foundation Arrowport Foundation Big Lottery Fund Bryan Guinness Charitable Trust C B and H H Taylor 1984 Trust Department for International Development European Union Evan Cornish Foundation Iron Mountain James Tudor Foundation Jersey Overseas Aid Commission John Thomas Kennedy Charitable Foundation Knadel Council’s report and accounts for the year ended 31 March 2012 Medicor Foundation Military Order of the Collar Charitable Foundation Pat and Barbara Bennett Charitable Trust Rotary Club Llantrisant Souter Charitable Trust St Mary’s Charity Sylvia Adams Charitable Trust The Allan and Nesta Ferguson Charitable Trust The CLSA Chairman’s Trust The Community of the Presentation Trust The Cotton Trust The Heald Charitable Trust The Tula Trust Sense Scotland Creative Scotland Jennie S Gordon Memorial Foundation Northwood Charitable Trust Scottish Natural Heritage The Annie Jack Memorial Trust The Big Lottery Fund The R S Macdonald Charitable Trust Radio Clyde Cash for Kids People’s Postcode Lottery Trust Esmee Fairbairn Foundation Charity information Registered address 101 Pentonville Road, 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 T Dumolo, Director of Human Resources D Robinson, Director of Finance C Woodhill, Director of Fundraising R Legge, Director of Community Services Sense and Sense Cymru Sense International Tˆy Penderyn 101 Pentonville Road 26 High Street London N1 9LG Merthyr Tydfil CF47 8DP Tel: 0845 127 0060 Ffôn/tel: 0845 127 0090 Fax: 0845 127 0061 Ffacs/fax: 0845 127 0091 Text: 0845 127 0062 Testud/text: 0845 127 0092 Email: info@sense.org.uk Email: cymruenquiries@sense.org.uk Website: www.sense.org.uk Sense Scotland Sense Northern Ireland 43 Middlesex Street Sense Family Centre Kinning Park The Manor House Glasgow G41 1EE 51 Mallusk Road Mallusk Tel: 0141 429 0294 County Antrim BT37 9AA Fax: 0141 429 0295 Text: 0141 418 7170 Tel/text: 028 9083 3430 Email: info@sensescotland.org.uk Fax: 028 9084 4232 Website: www.sensescotland.org.uk Email: nienquiries@sense.org.uk