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RNIB Group Annual Report and Financial Statements 2014/15 Contents 2 At a glance – 2014/15 highlights 2 Chair and Chief Executive introduction 4 Structure and objectives 13 Trustees’ strategic report 13 Our strategy 14 Our values 15 Our commitment to change 15 Our work 33 Other information 53 Governance and financials 53 Independent auditors’ report 57 Consolidated statement of financial activities 64 Balance sheets 67 Group cash flow statement 72 Notes to the financial statements 170 Who’s who at RNIB The images in this document are of RNIB and Action for Blind People customers and volunteers. 1

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RNIB Group Annual Report and Financial Statements 2014/15

Contents 2 At a glance – 2014/15 highlights

2 Chair and Chief Executive introduction

4 Structure and objectives

13 Trustees’ strategic report

13 Our strategy

14 Our values

15 Our commitment to change

15 Our work

33 Other information

53 Governance and financials

53 Independent auditors’ report

57 Consolidated statement of financial activities

64 Balance sheets

67 Group cash flow statement

72 Notes to the financial statements

170 Who’s who at RNIB

The images in this document are of RNIB and Action for Blind People customers

and volunteers.

Visit us online for the latest news and information about our services and

products. www.rnib.org.uk shop.rnib.org.uk

1

At a glance Royal National Institute of Blind People (RNIB) Trustees’ report and the audited

consolidated financial statements have been prepared in accordance with the

‘Statement of Recommended Practice (SORP) – Accounting and Reporting by

Charities (2005)’ as revised in May 2008, and the Charities Act 2011. This report

covers the work of the RNIB Group of charities throughout the UK, which

includes Action for Blind People, RNIB Charity, Cardiff Institute for the Blind and

RNIB Specialist Learning Trust.

2014/15 highlightsWe have provided advice services to over 60,000 blind and partially sighted

people

94 per cent of children and young people in our schools and college achieved

their individual targets.

Over 20,000 of our Talking Books are available for download via RNIB

Overdrive.

Chair and Chief Executive introduction Kevin Carey Chair Lesley-Anne Alexander CBE Chief Executive Overview As a

group of charities, RNIB, Action for Blind People, Cardiff Institute for the Blind

and RNIB Specialist Learning Trust are united in making every day better for

everyone affected by sight loss.

For people living with sight loss today, the world can be a tough place.

Continued cuts to services and income, an uncertain political future and the risk

of isolation and depression all impact on the quality of life for someone with a

sight problem. Every day of this year we have worked to ensure newly

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diagnosed people are reached sooner, people are supported to live the

independent lives they choose, society is a more inclusive place and no one

needlessly loses their sight.

In the next 15 minutes someone’s life will change forever. Someone will feel

more alone than they have ever felt before. Someone’s future will feel bleak.

Uncertain. Even terrifying. In the next 15 minutes, someone will be told they are

losing their sight. This year we have worked to ensure more eye departments in

the UK have access to a qualified sight loss adviser. This is a huge job but one

that is absolutely necessary so people get the practical and emotional support

they need to face the future without fear.

Everyone is different and will want a different level of independence – our job is

to make sure people get the right mix of skills and tools to make confident

choices. This year we have worked to provide advice services to over 66,000

people, we have extended our confidence-building services to support over

21,000 people, we have identified £14.8million in unclaimed benefits and

provided over 1,500 people with peer support through our telephone-based Talk

and Support groups. Despite the continuing problems with the Access to Work

scheme, which we challenged at a Select Committee Inquiry, we have

supported 647 people to get or keep a job.

Getting out and about with confidence is essential and this year we have

campaigned to make that a less daunting experience. Throughout the year we

have been in negotiation with Stagecoach, Go Ahead Group and Arriva for the

implementation of the bus charter, with First Bus and five other operators

already signing up. We launched a report called “Who put that there?” based on

feedback from 500 blind and partially sighted campaign supporters to increase

awareness of the challenges of the street environment.

Technology is changing the lives of people with sight loss. We have supported

nearly 7,000 people of all ages through our UK digital inclusion services to

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develop confidence in using technology. We have now made over 20,000 of our

Talking Books available for download via RNIB Overdrive along with podcasts,

Insight Radio content and our most popular monthly talking newspapers and

magazines.

No one should needlessly lose their sight. This year we have worked to secure

access to new treatments for vitreomacular traction and diabetic macular

oedema. We have also supported over 3,000 people with in-depth information

on eye conditions, treatments and living with sight loss through our Eye Health

Information Service to help people understand their conditions and manage their

own eye health.

This has been the first year of our current 2014/19 strategy and inside this report

you will find out more about the progress we have made towards achieving our

goals.

Everything we have achieved this year has only been possible through the

generosity and commitment of our supporters. A huge thank you to our donors

and the people who leave us a legacy in their will. Thank you to the local

fundraising groups for the work with their local communities to raise money for

us.

Thank you to our army of volunteers whose time helps us to deliver vital

services. Thank you to the people who step forward to campaign at a local and

national level to fight for the rights of blind and partially sighted people

everywhere.

Each and every one of you, along with the dedicated staff of RNIB, Action for

Blind People, Cardiff Institute for the Blind and RNIB Specialist Learning Trust,

is making a huge difference to the lives of people with sight loss in the UK.

Kevin Carey Chair

Lesley-Anne Alexander CBE Chief Executive

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Structure and objectives Our legal structure Royal National Institute of Blind People (RNIB) is a registered charity, number

226227, in England and Wales and number SC039316 in Scotland. Established

in 1868, RNIB was incorporated under Royal Charter in 1949, with a

Supplemental Charter in 1993 (revised in 2007 and 2014).

In April 2014, RNIB Charity was set up (company number 08971500, charity

number 1156629; charity number SC044876 in Scotland and 1173 in the Isle of

Man (foreign company number 5909F)). On 1 July 2014, we restructured the

RNIB group of charities in order to support the effective delivery of our new

strategy. RNIB Charity and Action for Blind People, both subsidiaries of RNIB,

will provide a focus for customers in terms of service delivery. We have also

amalgamated our support functions into RNIB to ensure efficiencies for all

charities within the Group.

RNIB is governed by a Trustee Board. Until 30 June 2014, this consisted of 18

people and now consists of 10 people. The Trustee Board meets a minimum of

four times a year and takes all important strategic, policy and financial decisions,

and has overall responsibility for RNIB Group activities. There are no restrictions

on the way in which RNIB can operate.

Until 30 June 2014, a number of Trustees were elected to serve on the Board;

five Trustees were elected by the English region representatives of the UK

Members’ Forum and the RNIB Cymru, Northern Ireland and Scotland Member

Forums elected a Country Chair who automatically became a Trustee on the

Board. RNIB’s Honorary Officers were elected by an electoral college

comprising members of the Board and the UK Members’ Forum. Additionally, a

proportion of our Trustees were appointed by the Board itself, following a

process of open competition. Trustees served a three-year term of office,

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following which they could choose to retire or seek re-election/re-appointment.

However, no Trustee could serve for more than three consecutive terms of three

years of office, unless they became one of the RNIB’s Honorary Officers (RNIB

Group Chair, Vice-Chairs or Honorary Treasurer) when they could serve for no

more than three consecutive terms of three years in that capacity.

From 1 July 2014, six Trustees are nominated by RNIB Charity and two

Trustees are nominated by Action for Blind People to serve on the Board. Two

independent Trustees are appointed by the Board itself.

During an initial transitional period, the Board will elect its Honorary Officers

(Chair, Vice-Chair and Honorary Treasurer) from within the Board itself.

Thereafter the Honorary Officers will be elected by an electoral college

comprising the Board and the UK Members’ Forum.

Trustees serve for a three-year term of office, but may serve for no more than

three consecutive terms of three years, other than in the case of an Honorary

Officer, in exceptional circumstances approved by the Board.

An induction pack is provided to all new Trustees and they are invited to attend

an intensive induction day during which they are provided with information on

the key services provided by RNIB and the main challenges and policy issues

facing RNIB. Each Trustee receives an annual appraisal during which any

individual training needs are identified. Where collective training needs are

established, these are delivered to the Board as a whole.

80% of our Trustees are blind or partially sighted.

How we are managed Our management and governance structures changed on 1 July 2014. The key

committees that support the Board and a description of their areas of

responsibility are as follows:

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RNIB Group Audit Committee: overseeing effective auditing, financial

reporting, internal controls and risk management within RNIB

Executive Committee: (until 30 June 2014) pre-digesting complex matters for

the RNIB Group Board; advises the Board with a view to ensuring the

alignment of budget and service priorities, including consideration of the

budget and business plan

Fundraising Committee: (from 1 July 2014) supporting the delivery of the

strategic priorities and outcomes in the RNIB Group Strategy 2014/19 by

developing fundraising strategies and advising on key issues relating to their

implementation

Governance Committee (and Nominations Committee): taking an overview of

the governance arrangements of RNIB and supporting the Board and

Strategic Management Team (SMT) in ensuring that effective governance

structures are in place. Appointing a panel to review nominations and act as

interview panel for Trustee applicants

International Committee: (until 30 June 2014) delivering the international

element of RNIB Group Strategy 2009/14 and acting as the planning,

coordinating and monitoring forum for RNIB’s international affairs

Investments Committee: overseeing the effective investment of funds for

RNIB on behalf of the Board. Acting in an advisory role on the effective

investment of funds to the Trustees of the RNIB Retirement Benefits Scheme

Remuneration Committee: reviewing the salaries for the Chief Executive and

Group Directors and other relevant matters, such as the general position

relating to remuneration at RNIB

Trustees Review Payments Committee: reviewing whether it is in the interests

of RNIB to pay or contract with Trustees or connected persons or any other

individual involved in RNIB Governance, for the provision of services to the

organisation, rather than any other company or individual

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RNIB Cymru Committee: (until 30 June 2014) taking an overview of the

arrangements and range of services for blind and partially sighted people in

Cymru and supporting the Board and SMT in ensuring that appropriate

arrangements are in place within the context of RNIB Group’s Strategy

RNIB Northern Ireland Committee: (until 30 June 2014) taking an overview of

the arrangements and range of services for blind and partially sighted people

in Northern Ireland and supports the Board and SMT in ensuring that

appropriate arrangements are in place within the context of RNIB Group’s

Strategy

RNIB Scotland Committee: (until 30 June 2014) taking an overview of the

arrangements and range of services for blind and partially sighted people in

Scotland and supports the Board and SMT in ensuring that appropriate

arrangements are in place within the context of RNIB Group’s Strategy.

The three committees for Cymru, Northern Ireland and Scotland are now part of

the governance structure of RNIB Charity.

The day-to-day management of RNIB is delegated to SMT. Until 30 June 2014

this comprised the Chief Executive and the Group Directors of:

Supporting Independent Living;

Inclusive Society;

Solutions; Fundraising;

Resources; and

the Chief Executive of Action for Blind People.

Following the restructure on 1 July 2014, SMT comprised the Chief Executive

and the:

Group Director, Fundraising;

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Group Director, Resources;

Managing Director, Engagement of RNIB Charity;

Managing Director, Places of RNIB Charity;

Managing Director, Solutions of RNIB Charity; and

the Chief Executive of Action for Blind People.

On 1 April 2015, we added a Group Director, People to SMT. The Chief

Executive of RNIB, with the support of the rest of SMT, reports to the Board of

Trustees for approval of all major decisions. Full details of SMT can be found in

the section “Who’s who at RNIB”.

RNIB Membership This was an exciting year for membership with rapid growth in numbers from

10,980 in March 2014 to 13,548 in March 2015. This was due to strong

recruitment based on a free nine-month trial offer and an overall high level of

retention of both new and existing members. Work also started on the creation

of a new RNIB Group Community of blind and partially sighted people bringing

together members, campaign supporters and those involved in Action Connect.

All of this puts blind and partially sighted people at the centre of RNIB with the

UK Members’ Forum supporting the Board and influencing policy via members

‘on the ground’ experiences. Every member is kept up to date with the latest

news from RNIB via our award-winning members’ magazine ‘Vision’.

The supplemental charter and bye-laws require that 75 per cent of the Board of

Trustees are blind or partially sighted. Currently, 80 per cent of our Trustees are

blind or partially sighted. It is our intention that in time all members of the UK

Members’ Forum are blind or partially sighted.

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Our registered office We are registered at 105 Judd Street, London WC1H 9NE

Telephone 020 7388 1266.

Statement of Trustees’ responsibilities The Trustees are responsible for preparing the Trustees’ strategic report and the

financial statements in accordance with applicable law and regulations.

The law applicable to charities in England & Wales and Scotland requires the

Trustees to prepare financial statements for each financial year. Under that law

the Trustees have prepared the financial statements in accordance with UK

Generally Accepted Accounting Practice (UK Accounting Standards and

applicable law). Under that law the Trustees must not approve the financial

statements unless they are satisfied that they give a true and fair view of the

state of the affairs of the charity and the Group and of the incoming resources

and application of resources of the charity and the Group for that period. In

preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgements and 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; and

prepare the financial statements on the going concern basis unless it is

inappropriate to presume that the charitable company will continue in

business.

The Trustees are responsible for keeping accounting records that are sufficient

to show and explain the charity’s transactions and disclose with reasonable

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accuracy at any time the financial position of the charity and the Group and

enable them to ensure that the financial statements comply with the Charities

Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the

Charities and Trustee Investment (Scotland) Act 2005 and the Charities

Accounts (Scotland) Regulations 2006 (as amended). They are also responsible

for safeguarding the assets of the charity and the Group and hence for taking

reasonable steps for the prevention and detection of fraud and other

irregularities.

The Trustees are responsible for the maintenance and integrity of the charity

and financial information included on the charity’s website. Legislation in the UK

governing the preparation and dissemination of financial statements may differ

from legislation in other jurisdictions.

RNIB members form a strong community and voice for blind and partially

sighted people.

Statement of public benefit The Trustees confirm that they have complied with the duty in section 17 of the

Charities Act 2011 to have due regard to the Charity Commission’s general

guidance on public benefit, “Charities and Public Benefit”.

RNIB’s charitable objects are enshrined within its Charter and as such the

Trustees ensure that this Charter is carried out for the public benefit through our

three strategic priorities. This is done through delivery of services that whilst

aimed primarily at those who are blind or partially sighted, are where appropriate

open to all who might benefit throughout the UK.

Membership of RNIB is not a requirement to use our services.

Where we provide specialist services or products for which we charge and these

are supplied directly to blind and partially sighted people then we provide a

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significant subsidy for these from our own charitable funds. Where fees are paid

through central or local government or commercial organisations then the

pricing model covers the costs for the delivery of the service and long-term

maintenance and development. We also where necessary provide individuals

with access to assistance in applying for funding.

This report allows us to show how our charitable funds are distributed and

spent, and the benefits and impact that has on those using the services and the

wider impact on society for the reported year and in the future.

Relationship with other charities

We maintain close links and support the aims of other organisations such as

local, national and international charities working with or for people with sight

problems. We also work closely with other disability charities on issues of

mutual concern. We deliver services in partnership with some societies for blind

and partially sighted people, and some of our funding comes from charities and

trusts which support our aims.

Between April 2009 and February 2010, we formed associations with Action for

Blind People (Action) and Cardiff Institute for the Blind (CIB) enabling us to

share skills and expertise to reach more people with sight problems in a more

cost- effective way.

In September 2010, the Charity Commission approved a scheme whereby RNIB

became the sole Corporate Trustee of the Glynn Vivian Home of Rest for the

Blind (Glynn Vivian). This charity operated a Care Home in Wales which had

closed prior to us becoming the sole Trustee. The Home has now been sold and

the proceeds of the sale have been used for services to blind and partially

sighted people in Wales.

In April 2013, RNIB Specialist Learning Trust was set up as an Academy Trust,

which then took on responsibility for the Three Spires School in Coventry in

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September 2013, which provides education for primary-aged pupils with special

educational needs.

In April 2014, RNIB Charity was set up. On 1 July 2014, we restructured the

RNIB group of charities in order to support the effective delivery of the new

strategy. RNIB Charity will provide a focus for customers in terms of service

delivery.

Our associations enable us to share skills and expertise to reach more people

effected by sight loss.

Trustees’ strategic report 13 Our strategy

14 Our values

15 Our commitment to change

20 Our work

33 Other information

Blind and partially sighted people are at our heart and influence everything we

do.

Our strategy RNIB is passionate about improving the lives of blind and partially sighted

people. Losing your sight can be a frightening, lonely experience. People are at

their most vulnerable soon after diagnosis. Blind and partially sighted people

want to live independently so they make the most of their lives. They want

society to include them as equal citizens and consumers. And we, of course,

want fewer people to lose their sight.

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So for our new strategy, we will support many more people to make the most of

their lives, influence society to include blind and partially sighted people, and

work with partners to raise awareness about sight loss. And, above all, we will

be there so that everyone with serious sight loss gets the practical and

emotional support they need to rebuild their lives.

We are committed to maintaining our focus on outcomes for blind and partially

sighted people so we have devised an innovative way to monitor the impact our

services have. For each of our nine strategic outcomes we have developed a

series of indicators that show what life is like for the wider blind and partially

sighted population to give us the broad context for our work, and so we know

how many blind and partially sighted people our services are reaching and what

kind of change we are achieving. This approach enables us to monitor impact

over the whole of our five-year strategy period.

Our ambition for the 2014/19 strategy is to make every day better for everyone

affected by sight loss.

Our values We have adopted a set of values that describe our ethos and drive our

behaviours: we are led by blind and partially sighted people, we are

collaborative, creative, inclusive and open.

Blind and partially sighted people are at our heart and influence everything we

do. Over the past year our membership has grown to 13,548 and we have

extended Action Connect, a community of people affected by sight loss able to

share their experiences with one another and to help us improve what we do by

communicating through digital channels. In 2015/16 we will work with blind and

partially sighted people to shape a new RNIB Group Community bringing

together our campaign supporters, our members and Action Connect, and we

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will launch a development programme to support blind and partially sighted

people to prepare for civic leadership opportunities in the voluntary, statutory

and commercial sectors.

RNIB forms partnerships with leading eye health and sight loss organisations

across the UK to raise awareness of sight loss and build capacity. We founded

the UK Vision Strategy to foster change and improve provision for eye health:

the strategy is the UK’s response to the World Health Organisation’s Global

Action Plan for the Prevention of Avoidable Blindness and we are delighted to

be working in partnership to implement the UK Vision Strategy in each country

of the UK.

Our members have grown from 10,980 to 13,548.

Our commitment to change We want to reach many thousands more people, tripling the number of

customers we serve directly by 2019, so we are committed to continually

improving our services.

Our strategy sets out six change areas; customer engagement, volunteering,

involving blind and partially sighted people, partnerships, accessibility and

digital. To deliver this we are changing what we do by:

Setting out the standards we want for our customers and how we need to be

set up to deliver them

Extending our volunteer network and providing more volunteer training

Developing new ways for people living with sight loss to get involved in our

work across Action and RNIB

Developing partnerships of all kinds, with a specific focus on local sight loss

charities

Embedding standards of accessibility across all our activities and processes

15

Getting the right technology and IT infrastructure in place with a central hub

for the knowledge we hold to make it easier to share.

We are committed to continually improving our services.

We are led by blind and partially sighted people.

Our work Being there – people losing their sight can rebuild their lives.Right from the first diagnosis everyone affected by sight loss and their families

and friends, need advice and practical and emotional support. We are focused

on making sure more people are reached early.

Outcome 1 Newly diagnosed people with significant deterioration in their sight have

increased emotional well-being, and they, their family and friends have practical

support when they need it to rebuild their lives.

What we have doneWe want to make sure no one faces blindness alone so we secured support for

more sight loss advisers (also called eye clinic liaison officers (ECLOs) or vision

support officers) able to give tailored advice and much-needed emotional

support to people in the eye clinic. We have also trained 35 new sight loss

advisers and 169 eye clinic volunteers to provide support in even more

hospitals.

Our impact RNIB Group sight loss advisers have supported 17,446 people across the UK.

90 per cent of these people say they received all or most of the practical support

16

they needed and 87 per cent said they felt either much more or more reassured

after seeing a sight loss adviser.

Impact we aim to achieve in 2015/16 At the moment only 31 per cent of hospital eye departments are covered by a

sight loss adviser service. We want to ensure everyone who experiences sight

loss has emotional and practical support when they need it. We will work with

clinical commissioning groups, hospitals and ophthalmologists to make the case

for sight loss advisers. We will conduct research and evaluation to demonstrate

the value of eye clinic support services. We will work to secure new sight loss

adviser posts across the UK and to protect existing posts. We aim to increase

the number of patients who see a sight loss adviser in 2015/16 to 23,118.

17,446 people across the UK were supported through sight loss advisers.

Dennis’ story In June 2011, Dennis went for a routine appointment at the opticians. They

noticed something in the corner of his eye, a sort of shadowing and advised him

to visit his GP.

He had noticed something as well but thought nothing of it: “I just thought my

glasses needed cleaning or something like that.” However, once the shadowing

had started, the decline was immediate. Within a matter of weeks he was

registered blind.

Following the diagnosis Dennis admits he went into shock. What Dennis feared

most was the loss of his independence.

On the advice of his consultant he contacted the clinic’s sight loss adviser,

Cathie Burke. “I couldn’t believe how she talked to me like she understood what

I was going through.” Cathie gave him practical help, putting him in touch with

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social services, linking him to a financial expert who could help him fill out forms

claiming the right benefits. Emotionally it continued to be hard and he admits

breaking down two or three times a day at the beginning but says Cathie’s

support, along with his wife’s, was invaluable.

Independence and Inclusion – blind and partially sighted people can make the most of their lives and society includes blind and partially sighted people as equal citizens and consumers. Blind and partially sighted people should be able to make informed choices

about their lives. There should be access to the support, services, products and

technologies that enable a good quality of life, along with opportunities to

develop the skills for confident living. We are focused on promoting ongoing

independence.

Barriers to using mainstream goods and services result in isolation and

exclusion. We are raising awareness within communities and society to secure

changes in behaviour that result in improved access for blind and partially

sighted people.

Outcome 2Blind and partially sighted people have the skills, tools, confidence and support

they need to enhance their choice, control, enjoyment and independence in

daily living and make the most of their sight.

What we have done We have continued to extend our advice and support to ensure more people are

able to maintain control over their own lives. Our advice services have

supported 60,336 blind and partially sighted people. We significantly extended

our services to support 21,125 blind and partially sighted people of all ages to

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live their lives with confidence and to be as independent as they want to be. We

have delivered structured confidence-building programmes across the UK and

we have trained peer facilitators who are blind and partially sighted to share

their experiences with others. 1,563 people have taken part in telephone-based

Talk and Support sessions; we know that for many who find leaving their home

difficult these sessions are the highlight of their week.

Our impact Our confidence-building programmes are delivered in partnership with local and

national partners, to ensure that everyone attending gets the opportunity to find

out about the broad range of services and support available. With rehabilitation

services in many areas under significant strain these programmes play a crucial

role in providing essential information, while also giving people the chance to

consider the emotional impact of their sight loss. We were delighted that 100 per

cent of those taking part in our evaluation said they would recommend the

programmes to other people with sight loss.

Impact we aim to achieve in 2015/16 We will support 72,400 blind and partially sighted people to live independently

through our Helpline, Advice Service and Emotional Support Service. We will

retain our current Quality marks for our Advice and Legal Rights services.

The new Care Act requires local authorities to provide free rehabilitation

services so we will develop a comprehensive picture of the level and quality of

rehabilitation services, be clear about the criteria for a good rehabilitation

service and improve services in 10 of the poorest-performing local authority

areas.

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For the first time in months I had hope and a way of enabling me to do things

independently. Amy

Thinking about the future, when I think about it I’m terrified, losing my

independence. Though I know through RNIB people lead fulfilling lives even

though they’re blind. Barbara

Outcome 3

Blind and partially sighted people, family and carers maximise their income from

benefits.

What we have done We have worked to maintain the economic independence of more blind and

partially sighted people, their family and carers by ensuring blind and partially

sighted people receive the benefits they are entitled to. The number of people

accessing our service has doubled to 12,392.

Our expert Welfare Advice and Legal Rights teams have supported people to

claim welfare benefits they were entitled to, identifying £14.8million of unclaimed

benefits and we have campaigned tirelessly to maintain the level of eligibility

and entitlement for blind and partially sight people.

Our impact Our 2012 Annual Report drew attention to our concern that the proposed

change from Disability Living Allowance (DLA) to Personal Independence

Payment (PIP) failed to recognise sight loss is a serious disability and people

who can’t see face extensive and ongoing extra costs. We highlighted a

significant risk that blind and partially sighted people would be hit hard and lose

income as this new benefit was introduced.

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So we worked with blind and partially sighted people to secure clear changes to

the government’s assessment criteria to make sure they would receive PIP to

maintain their independence in areas of life others take for granted, such as

travel and seeing family. Our 2014 Annual Report celebrated the fantastic

success of this work as the government agreed to change the assessment

criteria for PIP to take into account these needs.

We are delighted our research this year has shown the long-term impact of this

work. Sandra is one of many supported by our Welfare Rights service to claim

PIP. It’s important for younger blind and partially sighted people too. Teenager

Sophie told us that the income she gets from PIP is important as it gives her

financial independence from her parents: “It does help because like at the age of

18 you can’t survive off your parents. So to me it’s money to be able to live.”

Impact we aim to achieve in 2015/16 We will take all necessary steps to defend Attendance Allowance, DLA and PIP

to maintain the economic independence of blind and partially sighted people.

The number of people accessing our Welfare Advice Service has doubled to

12,392 and we have identified £14.8 million in unclaimed benefits.

Sandra’s storySandra applied for her Personal Independence Payment in November 2013.

When she approached RNIB in August 2014, she was still waiting for an

assessment and had been informed by the Department for Work and Pensions

that this might take a further six months. We contacted the assessors on her

behalf and requested her claim be listed as a matter of urgency. The assessors

confirmed a slot had become available and Sandra was scheduled for an

assessment a few weeks later. We provided Sandra with advice and guidance

on the assessment process and the evidence she needed to present. Following

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the assessment, Sandra was awarded the enhanced rate of the daily living

component at £81.30 per week and the standard rate of the mobility component

paid at £21.55 per week. This award was back-dated to November 2013 and

Sandra received a lump sum payment and yearly increase totalling £10,488.

Outcome 4 Blind and partially sighted people are able to get out and about confidently and

safely on their own terms.

What we have doneFor many people with sight loss getting out and about is a major challenge.

Blind and partially sighted people have asked us to focus on making public

transport more accessible and street environments safer. So throughout the

year we have been in negotiation with Stagecoach, Go Ahead Group and Arriva

to make bus travel more accessible. We have provided resources that enable

our campaigners to work with and encourage the sign-up of their local

operators. We have run 10 Swap with Me events to improve driver awareness

and behaviour.

We launched a report called “Who put that there?” based on feedback from 500

of our blind and partially sighted campaign supporters, to increase awareness of

the challenges of the street environment for blind and partially sighted people

when they are out and about.

Our impact We have supported blind and partially sighted people to make their voice heard.

First buses, Go Ahead and Stagecoach have signed up to our bus charter, as

have seven regional bus companies, all making a public commitment to take

into account the needs of passengers with sight loss.

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Our campaigners have used the resources we developed to challenge shared

spaces, lack of crossing points, inaccessible crossings and pavement

obstructions. As a result, a number of schemes across the country have been

reversed, altered or implemented which have made the built environment more

accessible.

Impact we aim to achieve in 2015/16 We will ensure more blind and partially sighted people have access to buses as

and when they need them by continuing to engage with the five major bus

operators so they publicly commit to the RNIB bus charter to provide accessible

services.

We will build on “Who put that there?” by launching a template street charter for

campaigners to use to negotiate street charters relevant to their areas. Our aim

is for five local authorities to sign-up to street charters by March 2016.

“In Nottingham the bus drivers are loads better than they used to be. Some

even get off their bus to alert me they are there if I’m not in calling distance.”

Passenger with sight loss

Some 500 blind and partially sighted campaign supporters have called for safer

streets.

Outcome 5 Blind and partially sighted people are able to make more use of household,

digital, communication and entertainment services, products and technologies.

What we have done The popularity of our Switch on to technology events and product

demonstrations show there is high demand for advice and support about new

23

technologies. Yet we know from our research the most significant barriers

people with sight loss face to getting on with technology are belief their sight

loss itself is a barrier, a lack of skills or availability of training and not knowing

what to use the internet for. So that’s why our UK-wide technology support

services have focused on giving people the skills, tools and confidence they

need to make the most of technology to improve their independence.

We have transformed our product services to give customers more choice and

we have developed some pioneering technology partnerships to ensure we

remain at the forefront of technical innovation for blind and partially sighted

people. In response to increasing requests from our readers for a simple digital

download library, we have expanded our Talking Books Service and launched

our new digital library called RNIB Overdrive.

Our impactWe have supported 6,912 people of all ages through our UK digital inclusion

services to develop confidence in using technology. People tell us what a

difference technology makes to their everyday lives.

We have now made over 20,000 of our talking books available for download via

RNIB Overdrive along with podcasts, RNIB Insight Radio content, and our most

popular monthly talking newspapers and magazines. Readers can now

download directly onto their computers, smartphones and tablets, and manage

their own bookshelf, wish list and returns. We have already had some really

positive comments from people who love the idea of being able to choose a

book themselves, and have it downloaded straight onto their device. Brian who

trialled our new service told us: “It was lovely to be able to listen to books on my

iPhone and iPad. It was so easy to use the app, and so nice to listen to books

while I was in the garden or on a long journey.”

24

Impact we aim to achieve in 2015/16It’s vital we help people make the most of advances in technology so no one is

left behind and we know from our customers that they want us to offer more

information, support and training about technology. So we are absolutely

delighted about the launch of Online Today, a new Big Lottery Fund project led

by RNIB, to help people with sensory loss across the UK get online. Over three

years we’ll reach 2million people with sensory loss to encourage them to get

online and we will deliver face-to-face support to 125,000 people with sensory

loss to give them information and knowledge to increase their skills, enable

them to feel confident using technology and help them to stay safe online.

Online Today is being delivered in partnership with Action for Blind People,

Action on Hearing Loss, Guide Dogs, North Wales Society for Blind People,

Sense and Vision Support.

Ian’s story “I was a guy who loved his computer, I used BlackBerry products and was into

social media, but in 2011 I suddenly lost my sight. Thanks to RNIB, within a

couple of months I had an opportunity to learn how to use a screen reader on

my laptop with a tutor. Four years on, I have a new computer and the staff at

RNIB Scotland have advised me on technology that I’ve found much easier to

use and provided me with lots of advice. RNIB has been a great source of

information and support. In the last year I’ve went on a voice computing course,

got back into the social media scene that I loved so much and I’m actively in

Twitter and Facebook. And I’m back out there looking for work.”

Over 20,000 of our Talking Books are available for download via RNIB

Overdrive.

25

I have Guide [talking software] for my computer, because I can’t read the

screen. I’m learning to do new things all the time with it. It guides me through the

computer and gives me options about what I can do. Cathy

Outcome 6Blind and partially sighted learners are able to achieve their potential at school,

college and university.

What we have done Through the care and education provided by our expert staff at RNIB Pears

Specialist Learning Centre, Sunshine House School and RNIB College

Loughborough we have helped children and young people, including those with

complex needs, to reach their potential and supported their families. We have

worked to influence the Children and Families Act to ensure specialist services

for blind and partially sighted learners are protected and we have equipped

educators to support blind and partially sighted learners. Through Load2Learn, a

web-based service delivered by RNIB and Dyslexia Action, we offer free access

to downloadable resources for schools and colleges to help thousands of

students throughout the UK get access to textbooks in a format which is suitable

to their needs.

Our impact We are delighted 94 per cent of children and young people in our schools and

college were achieving their individual targets during the last academic year. We

successfully campaigned with parents and other organisations to protect

provision of sensory support for children and young people. And 98 per cent of

professionals who have accessed our resources say they are better enabled to

support blind and partially sighted learners.

26

Impact we aim to achieve in 2015/16 We will maintain and improve the excellent quality of our support to children,

young people and parents provided by RNIB schools, college and family

services. We want every blind and partially sighted child to get the support they

need at school so we will develop a picture of the level and quality of specialist

education support services. We will set criteria for good specialist education

support, including good education, health and care planning, and showcase

examples of best practice and challenge local authorities where education

support services are being threatened.

94% of children and young people in our schools and college achieved their

individual targets.

Nicole’s story “Since Nicole has started at RNIB Pears Centre, she’s much calmer, she’s not

so anxious, she doesn’t get so frustrated. She can explain, I think really how she

feels, if she feels pain. She has become more independent. I think her mobility

skills are improving and I think she’s blossoming now into a nice, happy young

lady.”

Sharon, Nicole’s mum

Fabian’s story “They’ve developed him into a confident, adaptable young man. If Fabian hadn’t

attended RNIB Pears Centre, I think he would be lost and I think I would too. It’s

the best choice that I’ve ever made. The achievements that Fabian has made

over the years, I mean, I couldn’t have asked for anything better, I really

couldn’t. I’m happy and so is Fabian.”

Jacqui, Fabian’s mum

27

Outcome 7 Blind and partially sighted people are able to develop skills to gain and retain

work and to volunteer.

What we have doneWe want to equip more blind and partially sighted people with the knowledge

and skills they need to either move closer to the labour market, or into work. So

we have provided 5,034 people with employment advice and support. We have

established a young ambassadors programme so people who we’ve supported

can go on to support others and we have worked with employers to enable them

to employ more blind and partially sighted people.

Our impact Government sources say only 45 per cent of working age people with sight loss

are in employment so we are delighted that we have supported 647 blind and

partially sighted people to get or keep their job. During 2014, problems with the

Access to Work scheme increased and many blind and partially sighted people

experienced severe delays and/or the provision of inappropriate equipment. We

made representations to a Select Committee Inquiry and to the Department for

Work and Pensions’ (DWP) own review to make sure that the voice of blind and

partially sighted people was heard.

Impact we aim to achieve in 2015/16We will increase the number of people we support, especially those furthest

from the labour market, to equip them with the skills and tools they need to

progress into work. We will define what constitutes good employment services

and challenge providers who are not delivering positive outcomes for blind and

partially sighted job seekers. We will work to defend and improve Access to

Work support.

28

We’ve supported 647 people to get or keep their job.

Rosie’s story“If you are blind or partially sighted and can’t generate enough income to live it

can become quite a depressing cycle. It’s been one of the best years of my life.

It’s been absolutely amazing. It’s been one of the best things that has ever

happened to me – getting a job and being able to prove to myself and other

people around me that sight loss isn’t going to hold me back.

“My advice is if you have any questions or worries just pick up the phone. It’s not

something I would have done a couple of years ago, but now I am starting to

see the breadth of the support that is available I would really encourage people

to pick up the phone and call RNIB.”

Outcome 8Information about key services, including health and transactions with key

service providers are accessible to blind and partially sighted people.

What we have done We have maintained pressure on government services to ensure people with

sight loss are not excluded as all delivery moves to digital by default. We have

particularly focused on ensuring people can access information they receive

from health, employment and banking services. We have supported legal cases

against the Department of Work and Pensions (DWP) for not providing

information in accessible formats, we have supported NHS England to develop

an Accessible Information Standard which will be mandatory from June 2016

and we have continued to promote the need to make cash machines accessible

to blind and partially sighted customers.

29

In response to demand from people with sight loss for assurance on accessible

products and from businesses who want to ensure their products are accessible,

we have launched RNIB Approved. RNIB Approved is our new quality

assurance mark that will help blind and partially sighted people identify products

that are easy to use. Products which are granted RNIB Approved status have to

go through a rigorous process which involves testing by accessibility experts

before being reviewed by a panel of blind and partially sighted people.

Our impact Our legal representation to the DWP led to a major internal review that has

resulted in the DWP proposing to establish a special unit to deal with accessible

information.

Seven major banks have made a public commitment to introduce talking ATMs

and 42 per cent of all cash machines are now activated to talk (11,894 out of a

possible 28,500 ATMs owned by the big seven banks).

New debit and saving cards launched by Royal Bank of Scotland (RBS) are the

first products to receive the RNIB Approved quality mark. RBS have been

awarded the mark after developing the new cards in partnership with RNIB.

The cards are the first of their kind to be completely accessible for blind people

and aim to make everyday banking easier for blind and partially sighted people.

They offer a number of accessibility features to ensure customers with sight loss

can use them independently and with confidence. A notch on the bottom right

corner aids with orientation and different braille characters in the top right corner

indicate whether the card is a debit or savings card.

Impact we aim to achieve in 2015/16We will maintain pressure on NHS England to launch the Accessible Information

Standard as planned, in June 2016. We will inform and empower blind and

30

partially sighted people to request personal health information in accessible

formats. Our target is for 20,000 blind and partially sighted people to request

their NHS patient information in their preferred format.

It’s really important blind and partially sighted people can go about their

everyday business with ease and confidence. It can be a frustrating and time-

consuming process to find accessible products so we will extend RNIB

Approved so that it becomes a mark that blind and partially sighted people

recognise and trust.

42% of all cash machines are now activated to talk.

We have continued to promote the need to make cash machines accessible to

blind and partially sighted customers.

Prevention – Fewer people lose their sight. Outcome 9Fewer people experience significant sight loss. We will support people to cope

with sight loss by increasing their knowledge and understanding of their eye

condition.

What we have doneRaising awareness of sight loss is critical if more people are to take

responsibility for eye health. We have given eye health information and advice

by digital, telephone and face-to-face channels so people understand their eye

condition and treatment. There should be better eye care services and access to

sight-saving treatments so we have engaged commissioning and delivery

bodies to ensure they implement effective plans for eye care that reflect their

communities.

31

We have influenced at local and national levels to make sure eye health is a

public health and research priority across the UK. We also want to focus on

preventing sight loss amongst at-risk groups so we have pioneered work with

those at risk of avoidable sight loss through community engagement with

specific target groups.

Our impactWe improved access to eye care services by engaging with NICE and the

Scottish Medicines Consortium (SMC) to secure access to new treatments for

vitreomacular traction and diabetic macular oedema. We continued to challenge

clinical commissioning groups that do not comply with their legal obligation to

introduce new treatments within three months of NICE/SMC approval. We also

challenged the eight hospital trusts that did not have rapid referral schemes for

wet AMD in place and to date six have responded posively and adopted new

arrangements.

By supporting 2,840 individuals with in-depth information on eye conditions,

treatments and living with sight loss our Eye Health Information Service has

helped people to understand their conditions and manage their own eye health.

Through our innovation project in Bradford we have pioneered a new approach

to support people to manage diabetes and prevent avoidable sight loss. We

have secured Department of Health funding to work with GP Practices and

people living with diabetes in areas of high deprivation in Leeds, Liverpool and

Manchester. GP practice staff and patients will work together using the “Living

Well with Diabetes” folders and consistent messages to improve self-

management.

Using the folder, a practice nurse reported: “Talking through the results page

with people, I realised that people don’t understand the difference between

‘hypo’ and ‘hyper’ so then they take the wrong action to try to put it right.”

32

“I have a 67-year-old male patient. He was overweight, drinking too much, lots

of social activities. He is an intelligent man. Going through the folder he realised

that he wasn’t doing as well as he thought. He lost weight and is back in control

without more medication. The folder motivated him; it helped him to focus and

remember.” – Practice Nurse in Bradford.

Impact we aim to achieve in 2015/16We will improve eye care services in three eye clinics and spread the learning

across eye clinics in the UK. We will also improve eye care services in nine

CCG (Clinical Commissioning Group) areas. We will improve the support people

living with diabetes receive to help them manage their condition to prevent sight

loss. We will improve the information provided to those with diabetic eye

disease, including those in early stages, by enabling 20,000 health practitioners

(GPs, practice nurses and optometrists) to better support people with diabetes

to manage their condition and we will share learning on how to improve take-up

of diabetic retinopathy screening to every screening service across the UK.

2,840 Our Eye Health Information Service helped 2,840 people to understand

their eye condition.

Sarah’s story“It’s indescribable the emotion you go through when someone tells you you’re

going blind... having previously been someone who travelled the world, very

independent, it’s life- changing. It’s something people say easily; that was life-

changing. You’re going to lose your sight – that’s life-changing, but it doesn’t

really sum it all up.”

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Other information Financial review2014/15 is the first year of RNIB Group’s new strategy. This has been based

around our four priorities: Being there; Independence; Inclusion; and Prevention.

The Group Statement of Financial Activities (SoFA) reflects our strategy.

In 2014/15, 58 per cent (2014: 62 per cent) of our overall incoming resources

came from fundraising activity (including 30 per cent, or £34million, from

legacies; 2014: 34 per cent or £40.8million), 40 per cent (2014: 37 per cent)

from service-related income and 2 per cent (2014: 1 per cent) from other

sources.

Donations and Gifts remained level. Legacy income fell from £40.8million to

£34million – a drop of £6.8million. The timing of income from this source is

notoriously difficult to estimate despite the sophisticated tools we use. The figure

in 2013/14 was also very high as our average cash income from legacies over

the last five years has been £36million.

Like many other voluntary organisations, we have felt the impact of government

cuts on our service income but have continued to focus on this area and income

has risen by £2million or 5 per cent (2014: rise of £0.5million or 1 per cent). We

endeavour to be constantly and consistently more effective whilst ensuring we

are delivering to meet the needs of blind and partially sighted people.

Group incoming resources have fallen by £4.2million (2014: rise of £1.6 million).

This is due to the two areas highlighted above, together with an increase in

income from the defined benefit scheme of £0.4million (2014: increase of £1.4

million), which in the previous year was offset by a fall in gains on disposal of

properties that amounted to £nil (2014: fall of £2.2 million), a VAT refund of

£0.6million (2014: £nil) and a fall in investment income of £0.4million (2014: fall

of £2.2million).

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Group resources expended were split between supporting our four strategic

priorities of Being there: 6 per cent (2014: 5 per cent), Independence: 68 per

cent (2014: 70 per cent), Inclusion: 7 per cent (2014: 8 per cent) and Prevention:

1 per cent (2014: 3 per cent), together with the costs of raising funds (17 per

cent; 2014: 13 per cent) and the governance costs for the organisation (1 per

cent; 2014: 1 per cent). What we did with these resources is explained in “Our

work in 2014/15” earlier in this report. Total resources expended have fallen by

£2.1million (2014: rise of £4.2million) due to actions in recognition of the drop in

income from legacies.

RNIB’s associated charities are RNIB Charity, Action for Blind People (Action),

Cardiff Institute for the Blind (CIB), RNIB Specialist Learning Trust and

BucksVision. These charities contributed income of £41.3million (2014: £23.4

million) of which £17.1 million related to grants from RNIB (2014: £10.9million)

and charitable activities of £46million (2014: £22.4million) to the Group in

2014/15 (note 4).

Free reserves disclosed in the Group balance sheet at the end of the year stood

at £23.3million (2014: £22.5million). However, during the year we changed our

approach to our free reserves across the Group and put in place an agreement

that we would jointly hold free reserves between RNIB and Action. On this basis,

free reserves for the Group amount to £27.8million (RNIB: £23.3million; Action:

£4.5million), which is favourable to our reserves policy of £22.5million (see

reserves section).

An actuarial valuation was carried out at 31 March 2014 by the pension

scheme’s actuary Aon Hewitt, using the projected unit method. The valuation

disclosed that the market value of the scheme’s assets (excluding defined

contribution and additional voluntary contribution assets) at that date was

£175.9million, and that there was a surplus of £0.6million relative to the

technical provisions (the level of assets agreed by the Trustees and RNIB as

35

being appropriate to meet member benefits, assuming the scheme continues as

a going concern). Contributions by RNIB therefore reduced to 12.5 per cent for

future accrual of final salary benefits from 1 January 2015. As of 1 January

2015, RNIB also ceased to make additional contributions of £828,000 a year

that were due to be paid until 30 June 2018.

The three subsidiary trading entities of the Group contributed £500,000 (2014:

£221,000) to the RNIB Group through gift aid, and two subsidiary charities gifted

nil (2014: £278,000) to RNIB.

We are very grateful for the continued support of donors through legacies, gifts

and donations, as well as the work of our many volunteers, which allows the

vital work of RNIB to continue.

£114.5 Million Incoming Resources Legacies: 30% Donations and Gifts: 28%

Services: 40% Other: 2%

Fundraising review Total voluntary income for 2014/15 amounted to £64.6million (2014:

£71.7million), a decrease of £7million against 2013/14. This is due to the level of

income from legacies in the year. We are pleased to have achieved this against

the background of the current economic difficulties that we all face. Gifts in kind

included in voluntary income amount to £0.3million (2014: £0.3million) for pro

bono work from various firms of lawyers and £0.2million (2014: £0.2million) for

advertising. There is also £3.1million (2014: £3million) of lottery and statutory

grants within income from charitable activities which is actively supported by our

fundraising team.

On 1 April 2009, RNIB and Action entered into an association agreement. Under

the terms of that agreement RNIB has taken over the responsibility for the

fundraising operation of Action in return for a grant. The grant in 2014/15

amounted to £5.5million (2014: £8.4million). The net proceeds of this fundraising

36

activity have been restricted within these financial statements for the benefit of

Action. The fall year-on-year is due to the adoption of a Group free reserves

policy to ensure we use our resources as effectively as possible to support blind

and partially sighted people.

On 1 July 2014, RNIB and RNIB Charity entered into an association agreement.

Under the terms of that agreement RNIB has responsibility for the fundraising

operation of RNIB Charity in return for a grant. The grant in 2014/15 amounted

to £10.4million. The net proceeds of this fundraising activity have been restricted

within these financial statements for the benefit of RNIB Charity.

Fundraising costs for 2014/15 amounted to £20.7million (2014: £15.7million).

The fundraising costs are net of an internal recharge in the sum of £4.7million

(2014: £5.2million) for costs incurred in raising public awareness about matters

relating to sight loss. These costs have been included within the costs of

‘Charitable activities’. The increase from last year is due to the reduction in the

allocation to raising awareness, work on a new CRM system and investment in

medium- to long- term income.

Our investment in fundraising is vital to sustaining our income and our ability to

plan and fund direct services, but we remain focused on driving efficiencies and

reducing our costs.

RNIB is a member of the Fundraising Standards Board (FRSB) scheme, the

body of self-regulation of fundraising in the UK, and as a member we adhere to

the highest standards of good practice. RNIB is also a member of the Institute of

Fundraising and adheres to contemporary best practice codes of fundraising.

Investment policy

Statement of investment principles Investment decisions are taken on the advice of the Investment Committee

whose members have a finance, investment or commercial background.

37

RNIB’s investment policy is to hold assets to achieve an appropriate return with

an appropriate level of risk when considered alongside RNIB’s business plan

and level of reserves. It has three investment objectives:

To invest prudently – the basic investment strategy of RNIB has been to

invest in a way that the minimum level of reserves is very likely to remain

covered, but with some investment risk being taken on the assets over and

above this minimum level

To invest in liquid assets – RNIB could call upon its quoted investments at any

point. It should be straightforward to sell RNIB’s assets down to cash, and

doing so should result in the cash being available quickly and without the

potential for significant adverse impact on the value of investments

To invest ethically – RNIB wishes to avoid unethical investments, and in

particular tobacco stocks due to the link between smoking and certain

conditions that result in sight loss.

The benchmark allocation for investments is 20-30 per cent in equities, 30-40

per cent in bonds and 30-40 per cent in cash. This strategy was developed with

the advice of Hewitt Associates and takes into account the nature of RNIB’s

business as reflected in its business plans. At 31 March 2015, the allocation of

investments is 25.7 per cent in equities, 34.6 per cent in bonds and 39.7 per

cent in cash.

It is our intention to maintain sufficient short-term cash holdings to meet

fluctuating needs, and to make appropriate use of an overdraft facility as

required with the RBS.

RNIB Group’s reserves policy is to set the level of free reserves using a risk-

based approach. The level of reserves is reviewed on an annual basis and is

currently set at £22.5million. Planned project expenditure from designated funds

38

and the current economic uncertainty have led us to hold its investments in a

low-risk and liquid portfolio.

It is our aim to perform an annual desktop review of Investment Managers and

to meet them as appropriate.

RNIB has mandates with Legal & General and Foreign & Colonial (F&C) and fee

structures are:

Legal & General Ethical Trust – 0.3 per cent per annum

Legal & General Cash Trust – 0.2 per cent per annum

Foreign & Colonial Ethical Bond Fund Share Class 2 – 0.55 per cent per

annum.

The Endowment Funds are managed by F&C. F&C fee structures are:

Foreign & Colonial Ethical Bond Fund Share Class 2 – 0.55 per cent per

annum

Foreign & Colonial Stewardship Income Fund (Dist) Share Class 2 – 0.88 per

cent per annum.

Other information

The Group investments include a further £49,000 (2014: £49,000) relating to

CIB and £6,536,000 (2014: £9,145,000) to Action. Other than the investments of

Staffordshire Blind, all Action’s funds are now managed by Legal & General,

using pooled funds to match the allocation set out in their investment strategy,

and their performance is closely monitored against, and closely matches,

publicly available market benchmarks. The investments of Staffordshire Blind

are managed by Investec Wealth and Investment.

Investment performance The funds in which the investments are held are measured against agreed

benchmark indices for each relevant holding. The performance of the

39

investments held by RNIB at 31 March 2015 against each fund’s benchmark

index is detailed in the following table.

As our UK equities are invested in an Ethical fund, the stocks in the index are

screened before being accepted into the fund.

Cash deposits are placed on behalf of the RNIB Group including the Associated

Charities by their respective banking organisations.

At 31 March 2015, the Group’s cash and short-term deposits stood at

£3.3million (2014: £2.1million). During the year the Group received interest of

cash and short-term deposits of £8,000 (2014: £8,000) of which £1,000 (2014:

£2,000) related to RNIB. RNIB’s short-term deposits were all overnight

placements and the average return made was 0.1 per cent (2014: 0.17 per

cent).

At 31 March 2015, the unrealised gain on the Endowment Funds was £405,000

(2014: loss £32,000), and the breakdown of the unrealised gain by fund can be

found in note 20.

The Elizabeth Eagle-Bott and Dr Duncan Leeds Funds are held in the F&C

Responsible UK Income Fund and the F&C Responsible Sterling Bond Fund.

The Emma Nye Fund is held in the F&C Responsible UK Income Fund only.

40

Value at 31 March 2015

Actual holding

Target holding

+/– Performance in year to 31 March 2015

£’000 % % % Fund % Benchmark %

+/–

Cash 4,771 39.7 40.0 -0.3 +0.2 +0.4 -0.2

Corporate bonds

8,571 34.6 35.0 -0.4 +13.1 +13.1 –

UK equities 4,166 25.7 25.0 +0.7 +7.9 +2.9 +5.0

Total 17,508 100.0 100.0

The Bristol Blind and GDC Rushton Funds are held in the F&C Responsible Sterling Bond Fund only.

The Sunshine Fund is held in the F&C Responsible Sterling Bond Fund, F&C Responsible UK Income Fund

and F&C Money Markets Fund.

41

Reserves policy RNIB Group’s reserves policy focuses on the level of ‘free reserves’. Free

reserves exclude restricted funds and designated funds, which include the net

book value of land and buildings occupied by RNIB services and activities. The

assessment of free reserves excludes any surplus or deficit reported on the

pension scheme.

The recommended free reserves level is calculated annually as part of the

budget process on the basis of the financial impact of the current risks facing

RNIB Group. The reserves policy is reviewed annually by the Trustees.

RNIB Group seeks to maintain free reserves within RNIB, RNIB Charity and

Action, to manage the risks to which RNIB Group is exposed in the course of its

business, including but not limited to safeguarding against volatile income, both

voluntary and service.

The Trustees consider that in order to meet these needs, and to operate

effectively, RNIB Group needs reserves of £22.5million based on the current

analysis of risk. RNIB Group’s free reserves were £27.8million (RNIB:

£23.3million; Action: £4.5million) at 31 March 2015 (2014: £29.6million; RNIB:

£22.5million; Action: £7.1million). The Trustees have agreed a business plan in

support of the strategy which aims to keep reserves close to the reserves policy

level during the new strategy period. This includes a planned deficit in 2015/16

of £3.1million.

The actuarial valuation of RNIB’s Pension Scheme at 31 March 2015 for the

purposes of FRS17 showed a surplus of £12.6million (2014: £6.5million), which

is added to the level of free reserves as required by FRS17. The corresponding

asset does not result in an immediate cash flow impact on RNIB. A full triennial

valuation of the pension fund took place as at 31 March 2014 and the updated

valuation has been produced and considered by the Pension Scheme Trustees.

42

Contributions to the scheme are met through planned income. The level of free

reserves has been calculated excluding the FRS17 surplus.

At 31 March 2015, RNIB held designated funds totalling £43.8million (2014:

£46.7million). Of this, £38.8million (2014: £39.6million) relates to properties and

£1.6million (2014: £1.7million) relates to other assets. Both of these are used

directly in undertaking RNIB’s objectives. The remaining funds amounting to

£3.4million (2014: £5.4million) represent the investment and mergers funds

together with amounts expected to be spent within three years on the

maintenance and replacement of properties and other assets and specific

projects. The fund definitions can be found within note 20.

Where restricted fund balances are in a deficit situation, then unless these will

be covered by forthcoming receipts, the deficit balances are charged to general

funds. Such balances in 2015 amounted to £49,000 (2014: £36,000), all of

which are to be covered by forthcoming receipts.

Risk management Risk is not only about threats that have to be managed; it is equally about the

potential failure to seize opportunities. RNIB views the strategic management of

risk as an integral part of its decision-making processes and culture, supporting

effective planning and evaluation of its activities. Risk management is focused

on risks associated with delivering our 2014/19 strategy and business plan, with

identified risks embedded in our strategic and operational management

processes.

Governance of the Group’s risk management ultimately sits with the Board of

Trustees. Detailed consideration of risk is delegated to the Audit Committee,

who are assisted by senior management in continually reviewing risk and

reporting to the Board.

43

Our risk management approach details the structures and processes that have

been put in place, and the key roles and responsibilities for successful risk

management.

We established an internal strategic risk committee (lead by senior officers) who

will undertake formal review of strategic and significant operational risks every

quarter and play a key role in ensuring mitigation plans are up to date and

relevant. The internal strategic risk committee report directly to the Strategic

Management Team, who in turn report on risk management to the Audit

Committee twice a year.

In preparation for the new strategic period 2014/19 the internal strategic risk

committee reviewed our existing strategic risk register, risks identified through

business planning and considered the wider external environment. As a result

they have developed a new set of strategic risks and risk factors which have

been signed off by the Board of Trustees. There are six key strategic risks which

cover both external and internal risks:

Risk 1: Insufficient resources to deliver the 2014/19 strategy.

Risk 2: Inability to respond to a significant change in the external environment.

Risk 3: We do not have the right Trustee, employee and volunteer capacity or

capability. Risk 4: We do not have adequate and appropriate IT and digital

infrastructure to deliver our strategy.

Risk 5: We do not have adequate or appropriate governance or processes in

place.

Risk 6: Our actions or behaviour damages the RNIB Group brand or reputation

with key stakeholders.

In order to manage these risks there are a number of controls and mitigations in

place including (but not limited to):

1. Five-year strategy, business plan and budget which has regular Strategic

Management Team and Board of Trustees oversight.

44

2. Strategically aligned Governance structures including subsidy charity

agreements.

3. Group-wide organisational values.

4. Financial controls and policies (such as reserves, investment policies and

ethical fundraising).

5. Disaster recovery and business continuity planning.

6. Controls related to statutory compliance obligations (such as health and

safety, data protection, safeguarding).

7. Proactive and targeted campaigning.

8. Involvement of blind and partially sighted people in our campaign and

influencing work.

9. Strategic partnership work.

10. Staff and volunteer recruitment policy and procedures which are aligned to

strategy.

Overall, deployment of the Group’s risk management controls and mitigations

continue to remain effective where they are already well-embedded, and where

new risks have been identified mitigations are being implemented.

The Board of Trustees are therefore satisfied that the major risks have been

identified and processes for addressing them have been put in place. It is

recognised that any control systems can only provide reasonable but not

absolute assurance that major risks have been adequately managed. Overall we

are confident our risk position remains within acceptable levels.

Going concern Having reviewed the strategic risks facing RNIB, the business plan for the period

2015/16 and beyond, and the cash and investments forecast over the same

period, the Board of Trustees considers that there are sufficient reserves held at

45

31 March 2015 to manage those risks successfully despite the current uncertain

economic outlook. The Trustees consider that there is a reasonable expectation

that the Group has adequate resources to continue in operational existence for

the foreseeable future. Accordingly, they continue to adopt the ‘going concern’

basis in preparing the Annual Report and Financial Statements.

Our volunteers We have huge ambitions to reach many more people with sight loss. In order to

do this we need to increase our volunteer involvement in everything we do so

people with sight loss can get the support they need when they need it. This

year we have increased our volunteer numbers from 4,020 to 4,811, and our

volunteers themselves are giving us more of their time to help achieve this

ambition. On average each volunteer gives us 9.8 hours per month, up from last

year by 10 per cent.

The range of volunteering opportunities increases, attracting more people to

help us reach more people with sight loss, for example:

Our Living with Sight Loss volunteers are there for people to help them come

to terms with losing their sight, our campaigns volunteers continue to have a

significant impact on local issues and our community fundraising groups are

expanding across the UK

Our Online Today service launched in February. We are recruiting and

training volunteers to help blind and partially sighted people get online over

the next three years.

As well as increasing our volunteer engagement, we need to maintain our high

standards of customer service. 9 out of 10 of our customers are happy with the

46

quality of services provided by volunteers and 9 out of 10 volunteers

recommend volunteering with us to others.

Employing disabled people RNIB is a disability charity working to support people with sight loss. We seek to

support all our staff that has a disability, regardless of its cause.

Last year, RNIB introduced five values which underpin everything that we do.

Two of these specifically refer to people with disabilities. They are:

Led by blind and partially sighted people – blind and partially sighted people

are at the heart of everything we do;

Inclusive – we include and value people with diverse experience, abilities and

backgrounds.

RNIB makes sure that we comply with the Equality Act (Disability Discrimination

Act in Northern Ireland) and seek to make reasonable adjustments to allow

people with differing disabilities to work for us.

As a sight loss charity we ensure all blind and partially sighted applicants who

meet the minimum requirements for the role are automatically offered an

interview and given constructive feedback if they are unsuccessful. In addition,

where there are two equally matched applicants, one of whom is blind or

partially sighted and one is not, the role is then offered to the applicant who is

blind or partially sighted.

Currently, 10.7 per cent (2014: 10.5 per cent) of our employees tell us that they

have a disability. Through dedicated resources in our IT team we are able to

provide specialist advice and support to ensure that disabled staff have the

appropriate equipment and training to perform effectively. Additional reasonable

adjustments are also made for disabled staff as required. RNIB also operates a

trainee scheme to provide work opportunities for blind and partially sighted

47

people and these have been successful in providing a route to permanent

employment both within and external to RNIB.

Engagement with staffRNIB has a number of mechanisms for engaging with staff and seeking their

views, both formal and informal. In September, we signed a recognition

agreement with Unite and UNISON trades union which gives them collective

bargaining rights over certain terms and conditions of employment. We currently

have five staff union representatives.

We also have a Staff Forum and a number of Staff Forum representatives who

meet at a site, regional and national level to discuss areas that are specifically of

interest to staff but also to receive information about the financial health of the

organisation and how we are achieving our strategic goals. We now have a

permanent Staff Forum chair and have held our first Staff Forum conference

bringing all staff representatives together to talk about their role.

We are continually looking for ways in which we can engage more with our Staff

Forum representatives and this year, they were involved for the first time in the

analysis of the feedback from the annual staff survey. They are also asked for

their views on changes to HR-related policies and procedures.

The staff survey was run again towards the end of 2014 and showed favourable

results when benchmarked against the charity sector averages with scores of 69

per cent of staff agreeing that they would recommend RNIB as a good place to

work and 88 per cent of staff understanding the aims of the charity. All five of the

key staff engagement scores which we use to benchmark against the annual

charity-wide survey showed an increase against last year’s scores.

48

Health, safety and the environment

We are firmly committed to achieving our goals of environmental sustainability

and ensuring the safety of our people through the continued development of our

safety, health and environmental management systems. We recognise that our

people are our single most important asset within the organisation. Through the

provision of sound risk management techniques and a comprehensive training

programme we will ensure they are both competent and confident to undertake

their roles; working in ways which are efficient and cost-effective for the benefit

of all who work in, and access, our services.

Environmental impact RNIB Group has come to the end of a five-year plan to reduce environmental

impact in five priority activities: zero carbon, zero waste, health and happiness,

sustainable materials and sustainable transport.

Some excellent results were achieved, most notably in waste, sustainable

materials and transport. The target to reduce our carbon footprint by 10 per cent

from the energy use in buildings was not achieved across all of our portfolio of

properties. We will, however, continue, across all of RNIB Group, to strive

towards further reductions in all five activities identified in the RNIB five- year

plan. Future environmental targets and initiatives will be aimed at ensuring

compliance with the new Energy Saving Opportunity Scheme Regulations

(ESOS).

The performance for the year against our targets is set out in the following table.

Other information

“I thoroughly enjoy volunteering and would recommend anyone to take some

time if they have any.” RNIB Cymru volunteer

49

Other information

Priority Target 2014/15 2013/14

Zero carbon Buildings – 10 per cent total reduction

(CO2 tonnes) over five years – [baseline

4,104]

4,195 (2 per cent

increase from

baseline)

4,085 (slight

reduction from

baseline)

Zero waste Reduce total waste by 10 per cent over

five years [baseline 602]

601 (in line with

baseline)

549 (9 per cent

decrease)

Zero waste Recycling rate of 40 per cent per annum 43 per cent 44 per cent

Sustainable transport Reduce air, road and rail travel (CO2

tonnes) by 2.5 per cent per annum for five

years [baseline 846]

542 (36 per cent

reduction)

655 (23 per cent

reduction)

Sustainable materials Develop a sustainable procurement policy Implemented Implemented

Health and happiness Reduce staff sickness levels from 10

working days in 2011

11.27 days 10.26 days

Health and happiness Improve staff satisfaction ratings in

biennial staff survey from 73 per cent

78 per cent 64 per cent

50

Zero carbon The figures represent the amount of electricity/gas usage in our buildings

converted to carbon tonnes. This year there has been a 2 per cent increase

(from baseline) in CO2 tonnes energy used for our buildings. This increase in

CO2 is due to higher than average use of gas (compared to the average for the

last 20 years) at nearly all of our sites which is attributable to a colder winter

period.

Zero waste Waste initiatives have continued to be successful in many parts of the

organisation; however, we have seen changes in our property portfolio, which

means a creation of decommissioning waste that would not generally have been

created.

Sustainable transport By far our best efforts have been in the reduction of CO2 emissions from the

use of the various transport options: air, road and rail transport. A year-on-year

reduction has been achieved and we create 36 per cent less CO2 than we did in

2010/11. We will continue to encourage all of our staff and volunteers to use rail

instead of road transport and to make greater use of telephone conferencing.

Sustainable materialsThe Sustainable Procurement Policy has been reviewed and approved. This is

supported by more efficient processes for the evaluation of contractors ensuring

we work alongside suppliers with sound environmental principles and practices.

Health and happiness Sickness absence levels have increased by 9.8 per cent from 10.26 working

days lost per person in 2013/14 to 11.27 in 2014/15. Health and well-being

51

benefits available to staff continue to be reviewed with the aim of reducing

sickness absence levels and encouraging healthy lifestyles. The HR team plays

a key role in the support of managers managing sickness absences; return to

work interviews have increased and case handling has improved.

Going forwards The governance of health, safety, fire and environment will continue to be

enhanced during 2015/16 with further developments to, and efficiencies in, our

safety management systems. The Health, Safety, Fire and Environment (HSFE)

team will continue to improve our performance and processes, through a range

of monitoring activities and introduction of a suite of intuitive risk assessment

techniques. Performance indicators will be agreed and monitored by the HSFE

group. Key areas will include: fire safety management, risk assessment

processes and lone working. Also, as the range of activities across the Group

continues to expand, so too does the potential for new risks. The HSFE team

work hard, and in close collaboration with colleagues across the business, to

identify these new risks and implements effective measures to reduce or

eliminate their impact.

In 2015/16 the HSFE team will continue to advance our environmental

credentials, in particular by ensuring compliance with the new ESOS, requiring

the detailed collection and analysis of energy data, and the identification of

opportunities for reduced and smarter energy use.

The Trustees’ report, including the strategic report, was approved by the Board

of Trustees and authorised for issue on 16 July 2015.

Kevin Carey Chair, Alan Tinger Honorary Treasurer

52

Governance and financials 53 Independent auditors’ report

53 Consolidated statement of financial activities

64 Balance sheets

67 Group cash flow statement

72 Notes to the financial statements

170 Who’s who at RNIB

Making every day better for everyone affected by sight loss.

Independent auditors’ report

Report on the financial statements

Our opinionIn our opinion the financial statements, defined below:

give a true and fair view of the state of the Group’s and the parent charity’s

affairs as at 31 March 2015 and of the Group’s incoming resources and

application of resources and the Group’s cash flows, for the year then ended;

have been properly prepared in accordance with UK Generally Accepted

Accounting Practice; and

have been prepared in accordance with the requirements of the Charities Act

2011, the Charities and Trustee Investment (Scotland) Act 2005 and

regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as

amended) and regulation 15 of The Charities (Accounts and Reports)

Regulations 2008.

This opinion is to be read in the context of what we say in the remainder of this

report.

53

What we have audited The Group financial statements and the parent financial statements (‘the

financial statements’), which are prepared by RNIB Group comprise:

the Group and parent charity balance sheets as at 31 March 2015;

the Group charity statement of financial activities for the year then ended;

the Group cash flow statement for the year then ended;

the notes to the financial statements, which include a summary of significant

accounting policies and other explanatory information.

The financial reporting framework that has been applied in their preparation is

applicable law and UK Accounting Standards (UK Generally Accepted

Accounting Practice).

In applying the financial reporting framework, the Trustees have made a number

of subjective judgements, for example in respect of significant accounting

estimates. In making such estimates, they have made assumptions and

considered future events.

Other matters on which we are required to report by exception

Sufficiency of accounting records and information and explanations received Under the Charities Act 2011 and the Charities Accounts (Scotland) Regulations

2006 (as amended) we are required to report to you if, in our opinion:

we have not received all the information and explanations we require for our

audit; or sufficient accounting records have not been kept by the parent

charity; or

the parent charity financial statements are not in agreement with the

accounting records and returns.

We have no exceptions to report arising from this responsibility.

54

Other information in the Annual ReportUnder the Charities Act 2011 and the Charities Accounts (Scotland) Regulations

2006 (as amended we are required to report to you if, in our opinion, the

information given in the Trustees’ report is inconsistent in any material respect

with the financial statements. We have no exceptions to report arising from this

responsibility.

Responsibilities for the financial statements and the audit

Our responsibilities and those of the Trustees As explained more fully in the Trustees’ Responsibilities Statement, the

Trustees are responsible for the preparation of the financial statements and for

being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements

in accordance with applicable law and ISAs (UK & Ireland). Those standards

require us to comply with the Auditing Practices Board’s Ethical Standards for

Auditors.

This report, including the opinions, has been prepared for and only for the

charity’s Trustees as a body under section 144 of the Charities Act 2011 and in

accordance with section 44(1)(c) of the Charities and Trustee Investment

(Scotland) Act 2005 and regulations made under those Acts (regulation 30 of

The Charities (Accounts and Reports) Regulations 2008 and (regulation 10 of

the Charities Accounts (Scotland) Regulations 2006 (as amended)) 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.

55

What an audit of financial statements involves We conducted our audit in accordance with International Standards on Auditing

(UK and Ireland) (‘ISAs (UK & Ireland)’). An audit involves obtaining evidence

about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material

misstatement, whether caused by fraud or error. This includes an assessment

of:

whether the accounting policies are appropriate to the Group’s and the parent

charity’s circumstances and have been consistently applied and adequately

disclosed;

the reasonableness of significant accounting estimates made by the Trustees;

and

the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the RNIB

Group Annual Report and Financial Statements 2014/15 (the ‘Annual Report’) to

identify material inconsistencies with the audited financial statements and to

identify any information that is apparently materially incorrect based on, or

materially inconsistent with, the knowledge acquired by us in the course of

performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors

London 16 July 2015

PricewaterhouseCoopers LLP is eligible to act, and has been appointed, as

auditor under section 44(1)(c) of the Charities and Trustee Investment

(Scotland) Act 2005 and section 144(2) of the Charities Act 2011.

56

Consolidated statement of financial activities

Notes Unrestricted

funds £’000

Restricted

funds £’000

Endowment

funds £’000

Total 2015

£’000

Total 2014

£’000

Incoming resources

Incoming resources

from generated funds

Voluntary income

Donations and gifts 27,921 2,729 – 30,650 30,859

Legacies 28,608 5,369 – 33,977 40,797

Total voluntary income 56,529 8,098 – 64,627 71,656

Activities for generating

funds

Merchandising and

sponsorship

538 – – 538 348

Investment income 2 260 375 – 635 1,056

57

Total incoming

resources from

generated funds

57,327 8,473 – 65,800 73,060

Incoming resources

from charitable activities

Being there 87 1,404 – 1,491 2494

Independence 17,446 22,798 – 40,244 39,006

Inclusion 209 4,201 – 4,410 2,021

Prevention 4 68 – 72 629

Total incoming

resources from

charitable activities

1.5 17,746 28,471 – 46,217 44,150

Other incoming

resources

Other income – VAT

claim

629 – – 629 –

58

Other Income – defined

benefit pension scheme

1,806 – – 1,806 1,434

Net gain on disposal of

fixed assets

13 – – 13 3

Total incoming

resources

1.5 77,521 36,944 – 114,465 118,647

Notes Unrestricted

funds £’000

Restricted

funds £’000

Endowment

funds £’000

Total 2015

£’000

Total 2014

£’000

Resources expended

Costs of generating

funds

Costs of generating

voluntary income

1.6 17,522 3,192 – 20,714 15,705

Merchandising/

sponsorship costs

6 – – 6 28

59

Investment

management costs

48 12 – 60 115

Total costs to generate

funds

1.6/6 17,576 3,204 – 20,780 15,848

Charitable activities

Being there 4,204 2,365 – 6,569 5,761

Independence 49,950 30,614 – 80,564 84,152

Inclusion 4,410 3,843 – 8,253 9,741

Prevention 579 387 – 966 3,562

Total charitable activity

costs

6 59,143 37,209 – 96,352 103,216

Governance costs 5 948 465 – 1,413 1,540

Total resources

expended

6 77,667 40,878 – 118,545 120,604

60

Net outgoing resources

before transfers

(146) (3,934) – (4,080) (1,957)

Transfers 20 69 (69) – – –

Net outgoing resources

before other recognised

gains and losses

(77) (4,003) – (4,080) (1,957)

Notes Unrestricted

funds £’000

Restricted

funds £’000

Endowment

funds £’000

Total 2015

£’000

Total 2014

£’000

Balance brought

forward

(77) (4,003) – (4,080) (1,957)

Gains on investment

assets

612 662 405 1,679 1,150

Actuarial gains (losses)

on defined benefit

pension schemes

22 3,435 (1,645) – 1,790 (22)

61

Net incoming resources

attributable to non-

controlling interest

– (7) – (7) –

Net movement in funds 12 3,970 (4,993) 405 (618) (829)

Total funds balance

brought forward at 1

April 2014

75,670 25,335 5,329 106,334 107,163

Total funds balance

carried forward at 31

March 2015

20 79,640 20,342 5,734 105,716 106,334

62

A Statement of Total Recognised Gains and Losses is not required as all gains

and losses are included in the Statement of Financial Activities. Incoming

resources of RNIB during the year were £89,461,000 (2014: £106,453,000) less

resources expended by RNIB at £89,817,000 (2014: £106,687,000) led to a

deficit of £356,000 (2014: deficit of £234,000). All incoming resources,

resources expended and resulting net movements in funds are derived from

continuing activities. The Isle of Man Government require that we disclose the

income and expenditure in the Isle of Man which amounted to £145,000 (2014:

£162,000) and £163,000 (2014: £188,000) respectively. The notes that follow

form part of the financial statements.

It is worth noting that all incoming and outgoing resources through our

associated charities – Action for Blind People, RNIB Charity, Cardiff Institute for

the Blind and RNIB Specialist Learning Trust – are treated as restricted as these

funds relate to the specific services provided by each entity.

63

Balance sheets

Notes Group 2015

£’000

Group 2014

£’000

RNIB 2015

£’000

RNIB 2014

£’000

Fixed assets

Tangible assets 13 73,986 76,237 60,395 62,320

Investments 14 24,795 33,833 18,215 24,644

Total fixed assets 98,781 110,070 78,610 86,964

Current assets

Stocks and work in progress 15 1,051 1,010 – 904

Debtors:

amounts falling due within one year 16 24,761 21,020 21,156 19,400

amounts falling due after one year 17 – – 731 643

Investments 14 931 1,236 859 1,236

Cash at bank and in hand 3,253 2,080 1,323 835

64

Total current assets 29,996 25,346 24,069 23,018

Creditors: amounts falling due within

one year

18 12,303 13,075 6,695 11,008

Net current assets 17,693 12,271 17,374 12,010

Total assets less current liabilities 116,474 122,341 95,984 98,974

Creditors: amounts falling due after

one year

19 19,026 20,000 19,026 20,000

Net assets excluding pension asset 97,448 102,341 76,958 78,974

Defined benefit pension asset 22 8,275 3,993 12,596 6,482

Net assets including pension asset 105,723 106,334 89,554 85,456

Non-controlling interest in net assets 7 – – –

Net assets 21 105,716 106,334 89,554 85,456

65

Notes Group

2015

£’000

Group 2014

£’000

RNIB 2015

£’000

RNIB 2014

£’000

The funds of the Group/RNIB:

Endowment funds 20 5,734 5,329 5,733 5,328

Restricted income funds 20 20,342 25,335 4,181 4,458

Unrestricted income funds:

Designated 20 43,808 46,701 43,808 46,701

General 20 23,236 22,487 23,236 22,487

Pension reserve 20/22 12,596 6,482 12,596 6,482

Total unrestricted income

funds

20 79,640 75,670 79,640 75,670

Total Group/RNIB funds 20 105,716 106,334 89,554 85,456

66

These financial statements were approved by the Board of Trustees on 16 July 2015 and signed on behalf of

RNIB by Kevin Carey, Chair, and Alan Tinger, Honorary Treasurer. Kevin Carey Chair Alan Tinger Honorary

Treasurer

Group cash flow statement

2015 £’000 2014 £’000

Net cash outflow from operating activities (7,399) (1,964)

Returns on investments and servicing of finance

Investment income 635 780

Interest element of finance lease rental payments and loan (1,160) (1,220)

Net cash outflow from investments and servicing of finance (525) (440)

Capital expenditure and financial investment

Purchase of tangible fixed assets (1,286) (2,060)

Proceeds from sale of tangible fixed assets – 3

Purchase of investments (7) (15)

67

Proceeds from sale of investments 10,773 4,045

Net decrease in endowment investments – 64

Proceeds from sale of property held for sale 613 –

Cash acquired on merger/association – (20)

Net cash inflow from capital expenditure and financial investment 10,093 2,017

Net cash inflow (outflow) before management of liquid resources and financing 2,169 (387)

Management of liquid resources

Cash deposited to short-term deposits – 961

Net cash from the management of liquid resources – 961

Financing

Net decrease in endowment investments – (64)

Finance loan paid (1,000) (1,203)

68

2015 £’000 2014 £’000

Net cash outflow from financing activities (1,000) (1,267)

Increase (decrease) in cash 1,169 (693)

2015 £’000 2014 £’000

Increase (decrease) in cash 1,169 (693)

Cash at 1 April 2014 2,079 2,772

Cash at 31 March 2015 3,248 2,079

Reconciliation of net income to net cash outflow from operating

activities

2015 £’000 2014 £’000

Net outgoing resources before transfers (4,080) (1,957)

Investment income (635) (1,056)

Depreciation 3,093 3,166

Non-monetary assets acquired on association (388) (1,377)

69

Gifted assets – 149

Investment management fees charged to portfolio 13 56

Costs on disposal of investment property deducted from transfer

to current asset

– 100

Investments – 100

Loss on disposal of tangible fixed assets 461 2,086

(Decrease) increase in current creditors (775) 334

Increase (decrease) in long-term creditors 26 (2)

Decrease in pension provision (2,492) (2,824)

Interest charged on finance lease payments and loan 1,160 1,220

Increase in debtors (3,741) (2,431)

(Increase) decrease in stock (41) 572

Net cash outflow from operating activities (7,399) (1,964)

70

Analysis of change in net

debt

31 March

2013 £’000

Cash flow

2013/14 £’000

31 March 2014

£’000

Cash flow

2014/15 £’000

31 March

2015 £’000

Cash at bank 2,774 (694) 2,080 1,173 3,253

Bank overdraft (2) 1 (1) (4) (5)

Total cash 2,772 (693) 2,079 1,169 3,248

Debt due within one year (1,000) – (1,000) – (1,000)

Debt due after one year (21,205) 1,205 (20,000) 1,000 (19,000)

Total change in net debt (19,433) 512 (18,921) 2,169 (16,752)

71

Notes to the financial statements

1. Statement of accounting policies

The principal accounting policies adopted in the preparation of these financial

statements are as follows:

1.1 Basis of preparation The financial statements have been prepared under the historical cost

convention, modified to include the revaluation of investments and properties

held for sale, in accordance with applicable accounting standards in the UK and

the Statement of Recommended Practice – “Accounting and Reporting by

Charities” (SORP 2005) as revised in May 2008, the Charities Act 2011, the

Charities and Trustee Investment (Scotland) Act 2005 and the Charities

Accounts (Scotland) Regulations 2006. The financial statements are prepared

on a going concern basis. The accounting policies have been consistently

applied across the Group from year to year.

1.2 Group financial statements The results of each of RNIB’s subsidiary undertakings, as listed in note 4, have

been consolidated in these financial statements under the heading “Group” on a

line-by-line basis, adopting uniform accounting policies. The term ‘Associated

Charity’ refers to organisations that have entered into a formal association

agreement with RNIB. Their objectives contribute to those of the RNIB Group

Strategy and under the tests of control they are deemed to be charitable

subsidiaries of RNIB.

The net assets at the date of association or merger are assessed on a fair value

basis for the purposes of consolidation into the results for the RNIB Group. The

results of the subsidiaries acquired during the year are included in the SoFA

72

from the effective date of acquisition. The intra-Group transactions, balances

and unrealised profits are eliminated in full. Any negative goodwill arising is

written off in the year of acquisition and included as an incoming resource within

the SoFA. Where specific assets are gifted to RNIB as part of the acquisition,

these are treated as a donation and transferred to RNIB.

No separate SoFA has been presented for RNIB alone as permitted by

paragraph 397 of the SORP.

1.3 Foreign currency transactions Foreign currency transactions completed within the year are included at their

transacted sterling equivalents. Assets and liabilities are valued using those

rates published by HM Revenue and Customs as at the balance sheet date. Any

foreign exchange gains or losses are charged to the SoFA.

1.4 Fund accounting Unrestricted funds comprise accumulated surpluses and deficits on general

funds that are available for use at the discretion of the Trustees in furtherance of

the general objectives of RNIB.

Designated funds are unrestricted funds that the Trustees of RNIB have set

aside, out of general funds and comprise sums of money for specific projects

that can either be the updating of existing, or the development and piloting of

new, charitable services.

Also within the designated funds are ‘service properties’ and ‘other fixed assets’.

‘Service properties’ represents the value of RNIB’s interests in land and

buildings, for the provision of services to people with sight problems. This value

is shown in a separate designated fund, as the properties represented are

essential for the provision of RNIB’s services. Transfers in respect of additions

to property in the year are made from the general fund and the development

73

fund. Transfers are made from this fund to the general fund in respect of

property disposals during the year. Property depreciation is charged to this fund.

‘Other fixed assets’ represents other assets in use by RNIB. The assets of

associated charities are held within the restricted funds.

Restricted funds comprise income received with special conditions attached.

Income for a specific purpose not spent in any year is carried forward in the

relevant fund. Also within restricted funds are the results of the associated

charities, which are operating under narrower objectives than those of RNIB.

Endowments received are credited directly to the relevant endowment fund.

Income arising from the related investments is allocated to the general fund or to

the relevant restricted fund, depending on the terms of endowment.

1.5 Incoming resources Donated goods and services are included at the value to RNIB where these can

be quantified. No amounts are included in these financial statements for the

services donated by volunteers. Income from trading in subsidiary undertakings

is transferred to RNIB by covenanting the profits of those undertakings.

Donations are accounted for as soon as their amount and receipt is certain.

Donations include Gift Aid based on amounts recoverable at the accounting

date.

Accrued income is provided for in respect of revenues that have been earned in

the current financial year but are yet to be invoiced.

Pecuniary legacies are recognised on notification. Residuary legacies are

recognised when probate is granted and there is sufficient information to value

them. In practice this is usually when the assets and liabilities statement is

received: they are included at 95 per cent of their valuation (to reflect the

uncertainty of estate administration). Reversionary interests involving a life

74

tenant are not recognised. We do not include any notification below £30,000

where we have yet to receive estate accounts.

Investment income, interest on deposits and income in connection with services

to people with sight problems is recognised on an accruals basis. Where an

incoming resource is received in advance of the activity to be performed then

the incoming resource is deferred and included in creditors. Income from the

sale of goods is recognised when orders are fulfilled. Investment income arising

on endowment funds is credited to the appropriate fund in accordance with the

prescribed conditions.

1.6 Resources expended (a) Expenditure, including irrecoverable VAT, is accounted for on an accruals

basis.

(b) Included within charitable activity costs is an apportionment of public

awareness expenditure representing the costs incurred by RNIB in educating

the public to be aware of the needs of people with sight loss.

(c) Support costs include both Group and corporate costs and are incurred in

support of direct service expenditures. Allocation of support service costs is on a

mixture of bases (see note 7).

(d) Fundraising expenses include those costs incurred in raising donations

and legacies.

(e) Governance costs are incurred in relation to the running of RNIB and the

charitable subsidiaries. This includes strategic planning and attending to the

statutory affairs of RNIB and the charitable subsidiaries.

(f ) Grants payable are charged to the SoFA when a constructive obligation

exists, that is when the recipient has been informed.

75

1.7 Fixed assets Tangible assets are recorded at cost, including irrecoverable VAT, or where

donated, open market valuation at the time of donation. Under the transitional

provisions of Financial Reporting Standard 15 (FRS15), RNIB has adopted the

valuations of properties as at 31 March 1999, where known, at cost and these

will not be updated. Where assets are acquired through entering into

Association agreements, then the cost of these are included at their fair value as

at the agreement date. Assets in the course of construction are transferred to

the relevant category of asset and depreciated when practical completion is

achieved. The minimum threshold for capitalisation is £2,500.

Depreciation is provided on all tangible fixed assets, except freehold land and

assets under construction, at rates calculated to write off the cost on a straight-

line basis over their expected useful lives. Where the assets have been acquired

under a finance lease then depreciation, and any impairment, is provided at

rates calculated to write off the cost, less estimated residual value of each asset,

over the life of the primary lease. The standard rates of depreciation are as

follows:

Service properties

Freehold buildings 50 years

Leasehold land and buildings – lease longer than 50 years 50 years

Leasehold land and buildings – lease shorter than 50 years Lease period

Machinery, vehicles and equipment

Motor vehicles; fixtures and fittings; equipment 5 years

Computer hardware 3 years

76

Fixed assets are subject to review for impairment when there is an indication of

a reduction in their carrying value. Any impairment is recognised in the SoFA in

the year in which it occurs.

1.8 Investments Listed investments are stated at mid-market value at the balance sheet date.

Investment properties are stated at market value as advised by RNIB’s property

advisers at the balance sheet date and this is done on an annual basis.

The investment in subsidiary undertakings is at cost.

The SoFA includes the net gains and losses arising on disposals and

revaluations throughout the year.

1.9 Property held for sale Included within current asset investments are properties held for sale. These are

properties that are actively being marketed and where there is a reasonable

expectation that the sale will be completed within the next 12 months. The value

of such assets is determined by the expected proceeds of the sale guided by the

professional valuations received and net of estimated disposal costs.

On transfer to property held for sale the unrealised gains and losses are

included along with other gains and losses within the SoFA. On completion the

realised gains and losses will be recognised in the incoming and outgoing

resources within the SoFA.

1.10 Stocks Stock of raw materials, consumables and finished goods held for resale is

valued at the lower of cost and net realisable value. Cost is standard cost on a

first-in first-out basis. Finished goods for resale comprises products suitable for

77

use by blind and partially sighted people. Provisions are considered for each line

of stock which has been held for more than a year.

1.11 Pension scheme For the defined benefit pension schemes of the RNIB Group, the current service

costs, gains and losses on settlements and curtailments, are charged to

resources expended. Similarly, pension finance costs arising from changes in

the net of the interest costs and expected return on assets are charged to

resources expended. Where income arises as a result of such changes this is

shown in the SoFA as an ‘other’ incoming resource. Actuarial gains and losses

are recognised immediately in the SoFA as ‘Actuarial gain, or loss, on Defined

benefit pension scheme’. The Group and RNIB defined benefit pension scheme

asset/liability is shown on the face of the balance sheet. For the defined

contribution schemes of the RNIB Group the amount charged to the SoFA in

respect of pension costs and other post-retirement benefits are the contributions

payable in the year.

1.12 Leased assetsLeases are regarded as finance leases where their terms transfer to the lessee

substantially all of the benefits and burdens of ownership other than the right to

legal title. The obligations to the lessor are shown as part of the borrowings and

the rights in the corresponding assets are treated in the same way as owned

fixed assets. All operating leases and rental expenses are charged to the SoFA

as incurred over the term of the lease on a straight- line basis.

1.13 Taxation RNIB is a registered charity, and as such is entitled to certain tax exemptions on

income and profit from investments and surpluses on any trading activities

78

carried out in furtherance of RNIB’s primary objectives, if these profits are

applied solely for charitable purposes

2. Investment income

2015 Group £’000 2014 Group

£’000

General funds

Investment income from quoted

investments

233 424

Bank interest receivable 1 2

Rents 22 47

Royalties 20 –

Restricted funds

Investment income from quoted

investments

352 583

Bank interest receivable 7 –

Total 635 1,056

Details of our investment policy can be found in the financial review section of

the Trustees’ strategic report.

79

BucksVision £’000

Fixed assets 43

Investments 309

Current assets 572

Creditors – amounts falling due within one year 20

Creditors – amounts falling due after one year –

Net assets 904

Net assets in the subsidiary 904

Fair value adjustment –

3. Net assets acquired on merger/association

RNIB Enterprises Limited entered into a limited liability partnership on 11

September 2014 in the form of RNIB Business Services LLP. There were no

assets or liabilities transferred at the date of acquisition.

Action for Blind People entered into an association with BucksVision on 1 July

2014, (charity number 1147814) and a company limited by guarantee and

registered in England and Wales (number 8016572). BucksVision is a local

society that delivers services to people who are blind or partially sighted in

Buckinghamshire.

RNIB associated with NTNM in February 2009 and the two charities

subsequently merged on 30 June 2013.

RNIB established a new charity in April 2013, the RNIB Specialist Learning

Trust, as an Academy Trust. This resulted in the transfer of assets from

80

Coventry City Council in September 2013. The value of fixed assets transferred

was reviewed during the year and an updated valuation received which resulted

in the reduction of £544,000 in the year.

The assets and liabilities in the table below are as at the date of merger or

transfer and have been accounted for using the acquisition method. There were

no purchase or consideration costs incurred in acquiring these net assets. The

resulting negative goodwill of £904,000 was recognised in the year ended 31

March 2015 and included as an incoming resource within the SoFA. The table

below relates to the year ended 31 March 2014.

NTNM

£’000

RNIB Specialist

Learning Trust £’000

Total 2014

£’000

Fixed assets 376 1,248 1,624

Investments – – –

Current assets 108 94 202

Creditors – amounts falling

due within one year

132 – 132

Creditors – amounts falling

due after one year

203 – 203

Net assets 149 1,342 1,491

Net assets in the subsidiary 149 1,342 1,491

Fair value adjustment – – –

81

There were no purchase or consideration costs incurred in acquiring these net

assets. The resulting negative goodwill of £1,491,000 was recognised in the

year ended 31 March 2014 and included as an incoming resource within the

SoFA.

4. Net income from trading activities of subsidiary undertakings

A summary of the results for the year ended 31 March 2015 of the subsidiaries

of RNIB operating under association agreements follows:

82

RNIB

Charity

£’000

Action

£’000

CIB

£’000

NTNM

£’000

Bucks

Vision

£’000

RNIB Specialist

Learning Trust

£’000

Total 2015

Associated

charities £’000

Total 2014

Associated

charities £’000

Total

incoming

resources

25,116 14,124 554 150 131 1,237 41,312 23,355

Total

outgoing

resources

(24,90

7)

(18,59

3)

(522) (150) (330) (1,452) (45,954) (22,390)

Net

incoming

(outgoing)

resources

before

transfers

209 (4,469) 32 – (199) (215) (4,642) 965

Net gains on

investment

assets

– 658 – – 2 – 660 402

83

Net gains on

revaluation

of fixed

assets

– (531) – – – – (531) 4,420

Actuarial

gain (loss)

on defined

benefit

pension

scheme

– (1,481) (78) – – (86) (1,645) 456

Net

movement

in funds

209 (5,823) (46) – (197) (301) (6,158) 6,243

Funds

brought

forward

– 26,012 565 – – 1,260 27,837 21,743

Funds

transferred

on

– – – – 904 – 904 –

84

association

Funds

transferred

to RNIB on

merger

– – – – – – – (149)

Funds

carried

forward

209 20,189 519 – 707 959 22,583 27,837

RNIB

Charity

£’000

Action

£’000

CIB

£’000

NTNM

£’000

Bucks

Vision

£’000

RNIB Specialist

Learning Trust

£’000

Total 2015

Associated

charities £’000

Total 2014

Associated

charities £’000

Fixed assets 209 22,858 1,932 – 40 1,565 26,604 30,070

Current

assets

5,179 1,889 220 7 691 561 8,547 3,630

Creditors –

amounts

falling due

5,179 1,666 165 7 24 475 7,516 2,731

85

within one

year

Creditors –

amounts

falling due

after one

year

– – 731 – – – 731 643

Pension

scheme

liability

– 2,892 737 – – 692 4,321 2,489

Net assets 209 20,189 519 – 707 959 22,583 27,837

86

RNIB Charity delivers regional services in Cymru, Northern Ireland and

Scotland and national services across the UK, grant funded by RNIB. RNIB

provides the fundraising service, with net fundraising receipts being restricted for

RNIB Charity. The sum of such grants amounted to £10,351,000 in the year

(2014: not applicable).

Action delivers regional services in England through their Action Teams in the

areas of work, leisure, housing, support for beneficiaries, and information and

education. RNIB provides the fundraising service, with net fundraising receipts

being restricted for Action. Since 1 July 2014, RNIB has delivered support

functions for Action. The sum of such grants amounted to £6,505,000 in the year

(2014: £10,640,000).

CIB provides a wide range of services to blind and partially sighted people

within Cardiff and the Vale of Glamorgan. RNIB provides the fundraising service,

with net fundraising receipts being restricted for CIB. The sum of such grants

amounted to £95,000 in the year (2014: £nil). RNIB has also paid a grant to CIB

in the year amounting to £172,000 (2014: £121,000) to cover additional costs

funded from income restricted for Cymru.

NTNM provided newspapers, magazines and information in accessible formats

for people with sight problems and also people with other disabilities. RNIB

provided operational funding and the fundraising service, with net fundraising

receipts being restricted for NTNM. RNIB has not paid a grant to NTNM in the

year (2014: £112,000). NTNM merged with RNIB on 30 June 2013.

BucksVision provided services for blind and partially sighted people in

Buckinghamshire. BucksVision became an associated charity to Action on 1

87

July 2014. RNIB has not paid a grant to BucksVision in the year (2014: not

applicable).

RNIB Specialist Learning Trust is an Academy Trust that took over

responsibility for Three Spires School in Coventry in September 2013 and which

provides education for primary age pupils with special educational needs. No

financial support was given to the Trust. The Trust’s year end is 31 August and

so the consolidation is on the basis of management accounts.

RNIB also has five wholly owned subsidiaries. These are RNIB Enterprises

Limited, RNIB Services Limited, National Library for the Blind (NLB), Blind

Centre for Northern Ireland (BCNI) and the Glynn Vivian Home of Rest for the

Blind (Glynn Vivian). RNIB Enterprises Limited holds the controlling interest in

RNIB Business Services LLP.

A summary of the results for the year ended 31 March 2015 of the subsidiaries

of RNIB follows below:

88

RNIB

Enterprises

Limited £’000

RNIB

Services

Limited £’000

NLB

£’000

BCNI

£’000

RNIB Business

Services LLP

£’000

Total 2015

£’000

Total 2014

£’000

Total

incoming

resources

538 6,595 10 – 90 7,233 5,698

Total

outgoing

resources

(68) (6,572) (10) – (76) (6,726) (5,199)

Net

incoming

resources

470 23 – – 14 507 499

Amount

gifted/cove

nanted to

RNIB

(470) (23) – – – (493) (499)

Non-

controlling

– – – – (7) (7) –

89

interest

Net

movement

in funds

– – – – 7 7 –

Funds

brought

forward

5 – – – – 5 5

Capital

investment

– – – – 10 10 –

Funds

carried

forward

5 – – – 17 22 5

A summary of the net assets as at 31 March 2015 of the subsidiaries of RNIB follows:

90

RNIB Enterprises

Limited £’000

RNIB

Services

Limited

£’000

NLB

£’000

BCNI

£’000

RNIB Business

Services LLP

£’000

Total 2015

£’000

Total

2014

£’000

Investment 10 – – – – 10 –

Current assets 337 1,583 5 – 100 2,025 818

Creditors –

amounts falling

due within one

year

342 1,583 5 – 76 2,006 813

Non-controlling

interest

– – – – 7 7 –

Net assets 5 – – – 17 22 5

91

RNIB Enterprises Limited The trading activities include commercial

sponsorship and a scheme for the recycling of toner cartridges, with the consent

of RNIB. A £200,000 facility remains available to RNIB Enterprises Limited and

if called upon would be made by RNIB to cover the working capital

requirements.

RNIB Services Limited administers RNIB’s school fees.

NLB exists as a shell charity to receive donations and legacies, which are

transferred to RNIB to be ring-fenced for the RNIB National Library Service.

BCNI exists as a shell charity to receive donations and legacies, which are

transferred to RNIB to be ring-fenced for RNIB Northern Ireland.

Glynn Vivian exists as a shell charity following the sale of the property

previously owned by Glynn Vivian. RNIB is the sole Corporate Trustee and on

the grounds of control Glynn Vivian has previously been consolidated within the

financial statements of the RNIB Group. The charity is now dormant and so

there is no disclosure in the tables above.

RNIB Enterprises Limited is one of two corporate members of RNIB Business

Services LLP. The Limited Liability Partnership has been set up to work in

partnership with MPH Accessible Media Limited to provide services to the

commercial and public sectors both in the UK and internationally.

We want to help our customers provide accessible information and

environments economically for those with sight loss.

92

A summary of the net assets as at 31 March 2015 of the subsidiaries of RNIB follows:

Associated

charities £’000

Subsidiaries

£’000

Total subsidiaries

2015 £’000

Total subsidiaries

2014 £’000

Total incoming resources 41,312 7,233 48,545 29,053

Total outgoing resources (45,954) (6,726) (52,680) (27,589)

Net incoming resources before

transfers

(4,642) 507 (4,135) 1,464

Net gains on investment assets 660 – 660 402

Net gains on revaluation of

fixed assets

(531) – (531) 4,420

Actuarial loss on defined

benefit pension scheme

(1,645) – (1,645) 456

Amount gifted/covenanted to

RNIB

– (493) (493) (499)

Non-controlling interest – (7) (7) –

93

Net movement in funds (6,158) 7 (6,151) 6,243

Funds brought forward 27,837 5 27,842 21,748

Investment of capital – 10 10 –

Funds transferred on

association

904 – 904 –

Funds transferred to RNIB on

merger

– – – (149)

Funds carried forward 22,583 22 22,605 27,842

Associated

charities £’000

Subsidiaries

£’000

Total subsidiaries

2015 £’000

Total subsidiaries

2014 £’000

Fixed assets 26,604 10 26,614 31,214

Current assets 8,547 2,025 10,572 4,448

Creditors – amounts falling 7,516 2,006 9,522 3,544

94

due within one year

Creditors – amounts falling

due after one year

731 – 731 643

Pension scheme liability 4,321 – 4,321 2,489

Non-controlling interest – 7 7 –

Net assets 22,583 22 22,605 28,986

The total net assets of the associated charities as at 31 March 2015 amounting to £22,605,000 (2014:

£28,986,000) are held within the Group restricted and endowment funds as detailed in note 20.

5. Governance costs

Group 2015

£’000

Group 2014

£’000

RNIB 2015

£’000

RNIB 2014

£’000

Internal audit 83 104 79 84

External audit – PricewaterhouseCoopers LLP 155 143 41 76

95

External audit – other 8 9 – –

Other services – PricewaterhouseCoopers LLP 11 7 11 7

Legal fees – Associated charities 165 246 88 215

Trustees’ expenses 73 69 57 54

Costs incurred in running the Chairman’s Office 48 47 48 47

International activity – including World Blind Union 66 67 66 67

General costs incurred in servicing RNIB’s corporate

committees and the statutory affairs of RNIB 804 848 545 688

Total governance costs 1,413 1,540 935 1,238

96

6. Resources expended – Group

Direct costs

£’000

Support costs

£’000

Total 2015

£’000

Total 2014

£’000

Costs of generating funds

Costs of generating voluntary

income

15,395 5,319 20,714 15,705

Merchandising and sponsorship

costs

2 4 6 28

Investment management fees 60 – 60 115

Total costs to generate funds 15,457 5,323 20,780 15,848

Charitable activities

Being there 5,295 1,274 6,569 –

Independence 65,841 14,721 80,562 89,913

Inclusion 6,951 1,303 8,254 9,741

97

Prevention 703 264 967 3,562

Total charitable activity costs 78,790 17,562 96,352 103,216

Governance costs 824 589 1,413 1,540

Total resources expended 95,071 23,474 118,545 120,604

7. Support costs allocation

Human

Resources

£’000

Finance

£’000

Information

Technology

£’000

Legal

Service

s £’000

Property

Service

s £’000

Other

£’000

Total 2015

£’000

Total 2014

£’000

Costs of

generating

funds

Costs of

generating

voluntary

672 412 1,321 70 92 2,752 5,319 4,171

98

income

Merchandis

ing and

sponsorshi

p costs

– 3 – – – 1 4 4

Investment

manageme

nt fees

– – – – – – – 16

Total costs

to generate

funds

672 415 1,321 70 92 2,753 5,323 4,191

Charitable

activities

Being there 200 195 362 16 78 423 1,274 –

Independe

nce

2,620 2,062 3,800 189 863 5,187 14,721 13,241

99

Inclusion 144 127 335 20 28 649 1,303 1,341

Prevention 47 16 60 3 3 135 264 714

Total

charitable

activity

costs

3,011 2,400 4,557 228 972 6,394 17,562 15,296

Governanc

e costs

13 185 48 3 4 336 589 1,009

Total

resources

expended

3,696 3,000 5,926 301 1,068 9,483 23,474 20,496

100

Basis of allocation: Human resources – Headcount

Finance – Pro rata on basis of costs Information and technology services –

Networked computers Legal Services – Pro rata on basis of costs

Property services – Floor space

Other (including strategy and performance, Group support) – Pro rata on basis

of costs

8. Taxation

RNIB is a registered charity and is thus exempt from tax on income and gains

falling within sections 478 – 489 of the Corporation Tax Act 2010 or s256 of the

Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its

charitable objects. No tax charge arises in any of the non-charitable subsidiary

entities included in the Group financial statements due to their policy of gifting all

taxable profits to their parent each year.

9. Group employee remuneration

The average monthly number of employees during the year was 2,471 (2014:

2,490), of which, the average full-time equivalent was 1,783 (2014: 1,978). Total

emoluments for all staff for the year amounted to £61,446,000 (2014:

£64,424,000). The total emoluments are analysed as shown below:

2015 £’000 2014 £’000

Salary costs 52,731 53,770

Employer’s NI contributions 4,781 4,820

101

Employer’s pension contributions 5,554 5,834

Total emoluments 61,446 64,424

The following numbers of employees received total emoluments within the

bands shown:

Between £60,001 and £70,000 18 16

Between £70,001 and £80,000 8 14

Between £80,001 and £90,000 7 4

Between £90,001 and £100,000 2 1

Between £100,001 and £110,000 4 6

Between £110,001 and £120,000 1 1

Between £130,001 and £140,000 – 1

Between £140,001 and £150,000 1 –

Between £150,001 and £160,000 – 1

No-one (2014: one) in the band from £150,000 to £160,000, and there are nine

other people (2014: 10) disclosed above where the figures include a payment on

the termination of employment. Included in the total emoluments figures above

are payments amounting to £2,664,000 made to 192 members of staff (2014:

£1,263,000 to 112 members of staff) on termination of employment. These costs

have been incurred as part of a programme of work to implement our 2014/19

102

strategy and ensure we have the right people with the right skills to effectively

meet the needs of our customers.

Also, of the number of staff disclosed in the table above RNIB made payments

on behalf of 36 (2014: 36) employees in respect of the RNIB Retirement Benefit

Scheme and the Teachers’ Pension Scheme, and there were payments made to

16 (2014: 17) members of staff in respect of the defined contribution element of

the RNIB Retirement Benefits Pension Scheme.

The total amount of employer contributions paid in respect of these employees

was £358,000 (2014: £374,000). For new entrants since 1 April 2005 the RNIB

Retirement Benefits Pension Scheme (RBPS) is partly defined benefit and partly

defined contribution, so included in the numbers reported are staff that may be

within both elements of the scheme.

In addition Action made payments on behalf of five (2014: seven) of its

employees in respect of pension contributions totalling £20,000 (2014: £44,000).

Staff are able to claim reimbursement of expenditure incurred by them in the

course of undertaking business on behalf of RNIB. Expenses are claimed

against a set policy and guidelines, are independently authorised and are not

regarded as part of the employee’s emoluments.

10. RNIB Trustees’ expenses and related parties transactions

Many Trustees and/or their organisations bear the cost of attending meetings

themselves. They receive no benefits from RNIB except as users of our

services. Where expenses are claimed these are in accordance with a set policy

and guidelines, are independently authorised and are not regarded as

emoluments.

Trustees of RNIB attend many committee, sub-committee and Boards of

Governors’ meetings, most of which are held at RNIB’s London service centre.

103

A total of £36,672 was paid to, and on behalf of, 21 Trustees of RNIB as

reimbursement of travel and subsistence expenses incurred in attending these

meetings (2014: £37,129 to 22 Trustees). In addition, £15,954 was paid to one

Trustee of RNIB as reimbursement of overseas travel and subsistence incurred

in attending international meetings and conferences (2014: £14,684 to three

Trustees).

The cost of lunches and overnight stays in RNIB establishments during the

meetings cost a further £4,054 (2014: £2,507).

During the year RNIB paid Kevin Carey, Chair of RNIB, £25,113 (2014:

£24,604) as remuneration in respect of carrying out his duty as Chair of RNIB.

Included in this salary was back-dated pay of £329 in respect of the staff annual

pay award relating to 2013/14. These payments have been made with the

consent of RNIB Commission. In addition, RNIB has paid £20,100 (2014:

£20,100) to HumanITy as a contribution to their secretarial and office costs in

providing support to Kevin Carey in his role as the Chair of RNIB. Kevin Carey

was employed as an executive director of the HumanITy organisation during this

period. HumanITy also receives a management fee of US$3,400 per month from

Transforming Braille Group of which RNIB has a 20 per cent share holding.

Peter Bennetts, a Trustee of RNIB, is also a Trustee of Gateshead & South

Tyneside Sight Service to which RNIB paid £30,000 grant (2014: £nil). Peter is

also a Trustee of VINE (Visual Impairment North East), which RNIB paid £810

(2014: £nil) and received £166 (2014: £nil). He is also a member of the Macular

Society which RNIB paid £100 (2014: £nil) and received £567 (2014: £nil).

Lord Low of Dalston, a Vice President of RNIB and a Trustee of Action, is

President of Visionary to which grants have been paid of £nil (2014: £18,000).

Vidar Hjardeng, a Trustee of RNIB, is a Director of External Relations for Focus

Birmingham from which RNIB received £11,240 (2014: £nil), as well as being a

104

member of the Audio Description Association, to which RNIB paid £50 (2014:

£nil).

Ian Jentle, a Trustee of RNIB, is also a Trustee of Extant, to which RNIB paid

£2,538 (2014: £nil).

The wife of David Mann (a Trustee of RNIB), is Chair of Sightlines to which

RNIB paid £298 (2014: £150).

Mike Nussbaum, a Trustee of RNIB and a Trustee of Action, is a Trustee of

Guide Dogs for the Blind Association from which £74,859 (2014: £67,553) has

been received and £3,100 (2014: £2,590) has been paid. Also Guide Dogs for

the Blind Association own two Action hotels where the lease is charged at a

peppercorn rent. Mike is also a Trustee of National Blind Children’s Society to

which £nil (2014: £22,593) has been paid and from which £555 (2014: £1,670)

has been received. Mike is also a Trustee of Vision 2020 UK to which £19,876

(2014: £nil) has been paid and from which £22,302 (2014: £nil) has been

received.

John Ramm, a Trustee of RNIB, is also a Trustee of Habinteg Housing

Association form which RNIB received £137 (2014: £nil).

In the year RNIB made Honoraria payments totalling £300 (2014: £810) to Ken

Reid, a Trustee of RNIB, in respect of the UK Vision Strategy. In addition, Ken is

a member of RP Fighting Blindness, formerly British Retinitis Pigmentosa

Society, from which RNIB received £nil (2014: £44). Ken is also a Trustee of

Scottish War Blinded from which RNIB received £23,372 (2014: £nil).

Paul Ryb, a Trustee of RNIB, is a Trustee of Macular Society to which £100

(2014: £200) has been paid. Paul is also a Managing Director of the GMB

division of Royal Bank of Scotland from which RNIB received £175,686. Paul

had no involvement in this contract either as Trustee of RNIB or as a Managing

Director of Royal Bank of Scotland.

105

Eleanor Southwood, Group Vice Chair, became an elected councillor for London

Borough of Brent on 22 May 2014 from which RNIB received £200,886. Eleanor

had no involvement in this contract either as Trustee of RNIB or as a councillor

for London Borough of Brent. Mike Townsend, a Trustee of RNIB, is a director of

the Torch Trust from which £100 (2014: £7,009) has been received.

Sandra Wilson, a Trustee of RNIB, is a member of Scottish Accessible

Information Forum (SCVO), for which RNIB received £40 (2014: £nil).

RNIB enters a comprehensive range of insurance policies to protect Trustees,

officers and employees against losses and personal legal liabilities arising from

neglect or default in the course of business. Total premiums for these policies

amounted to £33,989 (2014: £33,920).

11. Grants payable

Grants payable in the year amount to £382,000 (2014: £392,000) with seven

(2014: eight) grants of £5,000 or above, amounting to £94,000 (2014:

£165,000). In addition, around 730 (2014: 700) small grants at an individual

value of less than £5,000 were made.

2015

£’000

2014

£’000

Association of Blind Asians 10 –

Daisy Consortium 20 20

Gateshead and South Tyneside Sight Service 30 –

ICEVI Europe 5 –

June Metro Athletics – 6

106

Louis Braille Museum 8 9

Royal College of General Practitioners – 51

South Lincolnshire Blind Society – 7

Vision 2020 (UK) Limited – 17

Visionary (formerly NALSVI) – 18

Waltham Forest Blind Association – 12

World Blind Union – Marrakesh Treaty Ratification

Campaign Project 5 –

World Blind Union – Core Work Sponsorship 16 –

Other grants – all under £5,000 288 252

Total grants payable 382 392

12. Total movements of funds in the year is stated after charging

2015

£’000

2014

£’000

Auditors remuneration

Statutory audit fee – RNIB 70 71

Statutory audit fee – Subsidiary companies 18 13

Statutory audit fee – Associated charities 76 62

Audit of teachers' pension scheme and other non- 3 3

107

statutory audit work

Financial advice and other services 11 15

Operating lease payments – other 1,544 1,542

Foreign exchange losses 59 49

Depreciation charge – tangible fixed assets 3,093 3,166

(Loss) profit on disposal of fixed assets (7) 453

Of the £76,000 (2014: £62,000) statutory audit fees payable by the associated

charities £8,000 (2013: £9,000) was paid to organisations other than

PricewaterhouseCoopers LLP.

108

13. Tangible fixed assets

Group

Service

properties £’000

Machinery, vehicles and

equipment £’000

Total

£’000

Cost

Balance 1 April 2014 90,259 9,508 99,767

Additions 131 975 1,106

Additions on

association

61 12 73

Transfer to property

held for sale

(300) – (300)

Elimination on

disposal

(100) (156) (256)

Balance 31 March

2015

90,051 10,339 100,390

Accumulated

depreciation

Balance 1 April 2014 17,324 6,206 23,530

Charge for year 1,909 1,184 3,093

Elimination on

disposal

(66) (153) (219)

109

Balance 31 March

2015

19,167 7,237 26,404

Net book value 31

March 2015

70,884 3,102 73,986

Net book value 31

March 2014

72,935 3,302 76,237

Service

properties

£’000

Machinery, vehicles

and equipment £’000

Total

£’000

Cost

Balance 1 April 2014 76,414 6,875 83,289

Additions 28 417 445

Transfer of assets from

Action

– 424 424

Transfer of assets on

association – RNIB Charity

– (3,505) (3,505)

Transfer of property held

for sale

(300) – (300)

Elimination on disposal – (154) (154)

Balance 31 March 2015 76,142 4,057 80,199

110

Accumulated depreciation

Balance 1 April 2014 15,842 5,127 20,969

Charge for year 1,486 761 2,247

Transfer of assets on

association – RNIB Charity

– (3,259) (3,259)

Elimination on disposal – (153) (153)

Balance 31 March 2015 17,328 2,476 19,804

Net book value 31 March

2015

58,814 1,581 60,395

Net book value 31 March

2014

60,572 1,748 62,320

Service properties are used to provide services to blind and partially sighted

people. Of the net book value of property used by the Group, £15,761,000

(2014: £16,192,000) represents leaseholds of more than 50 years whilst

£448,000 (2014: £548,000) represents leaseholds of less than 50 years.

A transfer has been made from the designated service properties fund in the

sum of £272,000 (2014: £73,000) comprising additions of £28,000 (2014:

£73,000) less £300,000 (2014: £nil) disposals in the year. A transfer has been

made to the designated other fixed assets fund in the sum of £594,000 (2014:

£628,000) comprising additions of £841,000 (2014: £628,000) less £247,000

(2014: £nil) disposals in the year.

The net book value of fixed assets of our associated charities are held within the

restricted funds as set out in note 20.

111

14. Investments

Unrestricted funds

Group

2015 £’000

Group

2014 £’000

RNIB 2015

£’000

RNIB 2014

£’000

Quoted/Unquoted

Market value at beginning of

year

15,025 16,759 15,030 16,764

Acquisitions at cost 1 3 1 3

Disposals at opening market

value

(7,434) (3,946) (7,434) (3,946)

Net gain on revaluation 1,338 2,209 1,338 2,209

Market value at the end of

the year

8,930 15,025 8,935 15,030

Historical cost at the end of

the year

5,380 12,034 5,385 12,039

Property

Market value at beginning of

year

665 1,703 665 1,703

Disposals at opening market

value

– (1,071) – (1,071)

Net gain on revaluation 42 33 42 33

Market value at the end of 707 665 707 665

112

the year

Historical cost at the end of

the year

– – – –

Total market value at the

end of the year

9,637 15,690 9,642 15,695

Total historical cost at the

end of the year

5,380 12,034 5,385 12,039

Restricted funds

Group 2015

£’000

Group 2014

£’000

RNIB

2015

£’000

RNIB 2014

£’000

Quoted/Unquoted

Market value at beginning

of year

12,814 14,002 3,621 5,434

Acquisitions at cost 239 265 – –

Disposals at opening

market value

(3,446) (13) – –

Net loss on revaluation (183) (1,440) (781) (1,813)

Market value at the end

of the year

9,424 12,814 2,840 3,621

Historical cost at the end 10,156 13,381 4,780 4,780

113

of the year

Endowment funds

Group 2015

£’000

Group 2014

£’000

RNIB 2015

£’000

RNIB 2014

£’000

Quoted

Market value at

beginning of year

5,329 5,393 5,328 5,392

Disposals at opening

market value

– (29) – (29)

Net gain (loss) on

revaluation

405 (35) 405 (35)

Market value at the end

of the year

5,734 5,329 5,733 5,328

Historical cost at the

end of the year

4,775 4,775 4,774 4,774

114

Group

2015 £’000

Group

2014 £’000

RNIB 2015

£’000

RNIB 2014

£’000

Unrestricted funds –

Quoted

9,637 15,690 9,637 15,690

Unrestricted funds –

Unquoted

– – 5 5

Restricted funds 9,424 12,814 2,840 3,621

Endowment funds 5,734 5,329 5,733 5,328

Total market value of

investments at end of year

24,795 33,833 18,215 24,644

The market value of investments is further broken down as follows:

Group

2015 £’000

Group

2014 £’000

RNIB 2015

£’000

RNIB 2014

£’000

Unrestricted funds – UK

Quoted

8,930 15,025 8,930 15,025

Unrestricted funds – UK

Unquoted

– – 5 5

Unrestricted funds – UK

Property

707 665 707 665

Restricted funds – UK

Quoted

9,424 12,814 2,840 3,621

115

Endowment funds – UK

Quoted

5,734 5,329 5,733 5,328

Total market value of

investments at end of year

24,795 33,833 18,215 24,644

The Trustees believe that the carrying value of the investments is supported by

their underlying assets

Significant holdings Within the portfolio of quoted investments, the following holdings for RNIB

Group exceed five per cent of the total market value of the fund:

2015

£’000

2015

Per cent

2014

£’000

2014

Per cent

Unrestricted funds – L&G Ethical Trust

(Distribution Units)

3,015 12.5 4,942 20.6

Unrestricted funds – L&G Cash Trust

(Accumulation Units)

4,666 19.4 7,304 30.5

Unrestricted funds – F&C Ethical Bond

Share Class 2

4,061 16.7 6,374 26.6

Restricted funds – CAF UK Equities

fund

2,645 11.0 – –

Restricted funds – L&G Fixed Interest

Trust

2,582 10.7 – –

116

Endowment funds – F&C Ethical Bond

Share Class 2 (Emma Nye Fund)

3,148 13.1 2,899 12.1

In addition, RNIB investments also include the following nominal holdings in

subsidiary undertakings. The subsidiaries are all based within the UK and their

accounting year ends are 31 March.

Subsidiary undertakings

with a share capital

Registered in Capital held

Per cent

Number of £1

ordinary shares held

RNIB Enterprises Limited England and

Wales

100 5,000

RNIB Services Limited England and

Wales

100 1

Transforming Braille

Group LLC

USA 20 5 ownership units

Total – direct 5,001

RNIB Business Services

LLP

England and

Wales

50 Not applicable

In September 2014, RNIB entered into a partnership in the form of RNIB

Business Services LLP. RNIB Enterprises Limited is one of two corporate

members of the LLP and is entitled to half of the profits and has the controlling

voting interest.

117

RNIB is the sole corporate member of the following organisations which, all bar

the Glynn Vivian Home of Rest for the Blind, are limited by guarantee with no

shares in issue:

Subsidiary

undertakings limited

by guarantee

Registered in Company

number

Charity

number

Charity

number –

Scotland

Action for Blind

People

England and

Wales

26688 205913 SC040050

CIB England and

Wales

149982 214131 –

NTNM England and

Wales

1973092 293656 –

BCNI Northern

Ireland

NI 20701 XN48801 –

NLB England and

Wales

58823 213212 –

Glynn Vivian England and

Wales

– 214330 –

RNIB Specialist

Learning Trust England and

Wales

8478985 Exempt

Charity

118

RNIB has an indirect holding in the following organisations, through Action,

which are all limited by guarantee with no shares in issue:

Subsidiary undertakings limited

by guarantee

Registered in Company

number

Charity

number

BucksVision England and

Wales

8016572 1147814

The Blind Society for North

Tyneside Limited

England and

Wales

3736040 1075973

Staffordshire Blind England and

Wales

4154438 1091458

In addition to the fixed asset investments there are also some donated

investments held by RNIB, which because of their nature are included within

current assets.

Current asset investments (including property held for sale)

Group

2015

£’000

Group

2014

£’000

RNIB

2015

£’000

RNIB

2014

£’000

Property held for sale

Market value at beginning of

year

1,236 – 1,236 –

Transfers on association 72 – – –

119

with BucksVision

Transfers from fixed assets

to property held for sale

400 1,236 400 1,236

Disposals of property held

for sale

(613) – (613) –

Net loss on revaluation (164) – (164) –

Market value at the end of

the year

931 1,236 859 1,236

Historical cost at the end of

the year

528 600 528 600

The opening value relates to four properties in Condover, Shropshire three of

which have been sold. The remaining property was sold in April 2015. The

transfer in respect of property in 2015 relates to a parcel of land in Peterborough

which is in the process of being sold.

Group

2015

£’000

Group

2014

£’000

RNIB

2015

£’000

RNIB

2014

£’000

Unrestricted funds 931 1,236 859 1,236

Total market value of current

asset investments at end of

year

931 1,236 859 1,236

120

Total historical cost at the end

of the year

528 600 528 600

15. Stocks and work-in-progress

Group 2015

£’000

Group

2014 £’000

RNIB

2015

£’000

RNIB

2014

£’000

Finished goods for resale 792 762 – 656

Raw materials and

consumables

259 248 – 248

Total 1,051 1,010 – 904

16. Debtors – amounts falling due within one year

Group 2015

£’000

Group 2014

£’000

RNIB 2015

£’000

RNIB 2014

£’000

Trade debtors 5,790 3,780 499 2,902

Amounts owed by Group

undertakings

– – 3,824 1,281

Other debtors 1,518 2,168 1,219 830

Legacy accrued income 14,382 12,763 14,382 12,763

121

Prepayments and

accrued income

3,071 2,309 1,232 1,624

Total 24,761 21,020 21,156 19,400

The Group and RNIB has been notified of further legacies amounting to

£10,287,000 (2014: £7,464,000), which have not been recognised as income at

31 March 2015 because the conditions of the accounting policy for legacies

have not been met. When these conditions are met these amounts will be

included in future periods.

17. Debtors – amounts falling due after one year

Group 2015

£’000

Group 2014

£’000

RNIB 2015

£’000

RNIB 2014

£’000

Amounts owed by Group

undertakings

– – 731 643

Total – – 731 643

122

18. Creditors – amounts falling due within one year

Group 2015

£’000

Group 2014

£’000

RNIB 2015

£’000

RNIB 2014

£’000

Trade creditors 1,694 2,696 810 2,479

Bank overdraft 5 1 5 1

Net obligations under

loan

1,000 1,000 1,000 1,000

Net obligations under

finance leases

6 – 6 –

Taxes and social security

costs

1,100 1,447 528 1,131

Amounts owed to Group

undertakings

– – 78 42

Other creditors 1,822 1,530 726 1,344

Accruals 5,704 5,228 3,302 4,365

Deferred income – all

utilised in the year

972 1,173 240 646

Total 12,303 13,075 6,695 11,008

123

19. Creditors – amounts falling due after more than one year

Group

2015

£’000

Group

2014

£’000

RNIB

2015

£’000

RNIB

2014

£’000

Net obligations under finance

leases are payable as

follows:

Between one and two years 6 – 6 –

Between two and five years 20 – 20 –

Net obligations under bank

loan is payable as follows:

Between one and two years 1,000 1,000 1,000 1,000

Between two and five years 3,000 3,000 3,000 3,000

More than five years 15,000 16,000 15,000 16,000

Total 19,026 20,000 19,026 20,000

In 2011/12, RNIB exercised its option to convert a three-year revolving loan

agreement with the AIB Group (UK) plc to finance the redevelopment known as

the RNIB Pears Centre for Specialist Learning in Coventry into a 23-year

mortgage secured over the freehold property at Coventry. At 31 March 2015, the

amount owing on the loan is £20,000,000 (2014: £21,000,000).

Interest is charged on the loan at 0.65 per cent above the three-month LIBOR

rate. RNIB has entered into a swap with AIB under which for the period 30

124

December 2011 to 31 December 2026 the interest charged on the outstanding

amount of the loan, less £500,000, is at a fixed rate of 5.05 per cent.

Under the terms of the mortgage, RNIB undertakes to maintain the aggregate of

Designated and General Reserves at a level 25 per cent above the amount

outstanding at any time. At 31 March 2015, with the amount outstanding at

£20,000,000 (2014: £21,000,000) the level of such reserves has to exceed

£25,000,000 (2014: £26,250,000) and the actual level of such reserves stands

at £82,051,000 (2014: £83,059,000).

125

20. Group/RNIB statement of funds

Designated

31March

2014 £’000

Incoming

resources

£’000

Outgoing

resources

£’000

Transfers

£’000

Gains

(losses)

£’000

31March

2015 £’000

Investment fund 3,183 – 2,412 (400) – 371

Mergers fund 1,173 – 329 – – 844

Service property and

associated facilities

development

551 – 102 – – 449

Operational equipment fund 402 – 1,490 2,495 – 1,407

Information technology

infrastructure fund

72 – 831 1,101 – 342

Repairs and maintenance

fund

– – 884 884 – –

Net book value – Service 39,572 – 1,485 728 – 38,815

126

properties

Net book value – Other fixed

assets

1,748 424 1,007 415 – 1,580

Total designated – Group

and RNIB

46,701 424 8,540 5,223 – 43,808

127

Investment fund: The purpose is to fund major projects furthering the strategic

business plan. The transfer represents the release of unspent funds back to free

reserves of £400,000.

Mergers fund: This fund is designed to meet the costs of transition and future

development of services relating to organisations that have merged with RNIB.

Service property and associated facilities development fund: The purpose

is to fund capital building projects.

Operational equipment fund: The purpose is to fund planned capital

acquisitions. The £2,495,000 transfer represents a £253,000 designation from

the general fund for general capital acquisitions and the transfer to other funds

of £2,407,000 offset by the acquisition of fixed assets in the sum of £165,000.

Information technology infrastructure fund: The purpose is to ensure that the

information technology infrastructure is robust. The £1,101,000 transfer

represents a planned designation of £464,000 towards the fund as well as a net

transfer from other funds of £726,000 offset by the acquisition of fixed assets in

the sum of £89,000.

Repairs and maintenance fund: The purpose is to fund a rolling programme of

regular property maintenance. The £884,000 transfer represents new

designations to cover planned expenditure.

Net book value – service properties: The purpose is to recognise the value,

net of long-term debt, of RNIB’s service properties that are unavailable to free

reserves. Such fixed asset properties held in the associated charities are

recognised within the restricted funds. The transfer comprises £28,000 of other

additions together with a reduction in the long-term debt of £1,000,000 relating

128

to the loan repayment regarding the redevelopment at the RNIB Pears Centre

for Specialist Learning offset by a transfer of property to current assets of

£300,000.

Net book value – other fixed assets: The purpose is to recognise the value,

net of long-term debt, of RNIB’s other fixed assets that are unavailable to free

reserves. Such other fixed assets held in the associated charities are

recognised within the restricted funds. The transfer comprises additions

amounting to £417,000 less the net book value of disposals of £2,000.

129

Other unrestricted

31March

2014

£’000

Incoming

resources

£’000

Outgoing

resources

£’000

Transfers

£’000

Gains

(losses)

£’000

31March

2015 £’000

General – RNIB 22,487 68,148 62,857 (5,154) 612 23,236

Pension reserve 6,482 1,806 (873) – 3,435 12,596

Total other unrestricted 28,969 69,954 61,984 (5,154) 4,047 35,832

RNIB Enterprises

Limited

– 538 538 – – –

RNIB Services Limited – 6,595 6,595 – – –

National Library for the

Blind

– 10 10 – – –

Blind Centre for

Northern Ireland

– – – – – –

Total unrestricted –

RNIB and Group

75,670 77,521 77,667 69 4,047 79,640

130

Restricted

31March

2014

£’000

Incoming

resources

£’000

Outgoing

resources

£’000

Transfers

£’000

Gains

(losses)

£’000

31March

2015 £’000

Emma Nye fund welfare

pensions

525 135 208 – – 452

Dr Duncan Leeds

Bequest

74 51 69 – – 56

Elizabeth Eagle-Bott

Memorial Fund

39 28 60 – 2 9

Donations for specified

services

and equipment

2,899 9,784 9,892 (69) – 2,722

Action – 21 21 – – –

Glynn Vivian 526 – 526 – – –

Sub total 4,063 10,019 10,776 (69) 2 3,239

131

31Mar

ch

2014

£’000

Incoming

resources

£’000

Outgoing

resources

£’000

Transfers

£’000

Gains

(losses)

£’000

31March

2015 £’000

Fund and/or purpose b/f 4,063 10,019 10,776 (69) 2 3,239

Big Lottery Fund

AdvantAGE Programme

Wales Eye Patient Advocacy

Service

73 67 113 – – 27

Empowering Young People

Programme – Realise 15 108 115 – – 8

Safe and Well Programme,

Lisburn in Focus 46 133 170 – – 9

Silver Dreams Programme:

OPTiC (Older People Taking

Control)

8 (8) – – – –

132

Connecting Older People:

Looking Forward

62 170 112 – – 120

Bright New Futures – Future

In–Sight

31 196 187 – – 40

Reaching Communities –

Talk and Support: Supporting

our Volunteers through

Mentoring

39 1 5 – – 35

Sub total 4,337 10,686 11,478 (69) 2 3,478

133

31March

2014

£’000

Incoming

resources

£’000

Outgoing

resources

£’000

Transfers

£’000

Gains

(losses)

£’000

31March

2015 £’000

Fund and/or purpose b/f 4,337 10,686 11,478 (69) 2 3,478

Reaching Communities:

Trainee Grade Scheme –

Extending the Reach

45 112 101 – – 56

Awards for All

Connecting Communities 1 – 1 – – –

Family Activity Days – 5 2 – – 3

Creative Scotland –

Public

Engagement Fund

– 5 2 – – 3

The Arts Gallery

Heritage Lottery Fund (4) 5 1 – – –

134

Our Heritage Fund –

Seeing our History –

Scotland 2014

Our Heritage Fund –

Museums In Focus

– 28 16 – – 12

Heritage Grants Fund –

Culture Link South East 18 – 17 – – 1

Big Lottery Fund 13 21 34 – – –

Young Start Programme:

Education, Respect and

Awareness

7 21 27 – – 1

Support and Connect –

Advice Plus

– 130 64 – – 66

Sub total 4,417 11,008 11,741 (69) 2 3,617

135

31March

2014 £’000

Incoming

resources

£’000

Outgoing

resources

£’000

Transfers

£’000

Gains

(losses)

£’000

31March

2015 £’000

Fund and/or purpose b/f 4,417 11,008 11,741 (69) 2 3,617

Investment In Communities –

Looking To The Future

– 85 1 – – 84

People & Places – All Wales

Welfare Rights Service for

People with Sensory Loss – 150 92 – – 58

Basic Online Skills – Online

Today!

– 472 176 – – 296

Department of Health

IESD: Electronic Certificate

of Visual Impairment 26 80 40 – – 66

IESD: Communicating for

Efficiency and Effectiveness 2 59 61 – – –

HSCVF Community Eye

136

Health Champions – 74 27 – – 47

EIRECS Early Intervention

and Rehabilitation in Eye

Care Services

– 37 31 – – 6

Total restricted – RNIB 4,445 11,965 12,169 (69) 2 4,174

31March

2014

£’000

Incoming

resources

£’000

Outgoing

resources

£’000

Transfers

£’000

Gains

(losses)

£’000

31March

2015 £’000

Fund and/or purpose b/f 4,445 11,965 12,169 (69) 2 4,174

IESD – Bradford

Community Engagement

Project (BCEP)

– (5) (5) – – –

IESD – Support for Early

Reach in Clinics and

Hospitals (SEARCH)

13 68 74 – – 7

Total restricted – RNIB 4,458 12,028 12,238 (69) 2 4,181

137

Action 19,053 7,598 12,067 – (823) 13,761

RNIB Charity – 14,519 14,310 – – 209

CIB 564 287 255 – (78) 518

NTNM – 150 150 – – –

RNIB Specialist Learning

Trust

1,260 1,237 1,452 – (86) 959

RNIB Business Services

LLP

– 90 76 – (7) 7

BucksVision – 1,035 330 – 2 707

Total restricted – Group

and RNIB

25,335 36,944 40,878 (69) (990) 20,342

Restricted fund balances may be in a deficit situation pending future receipts where such funding is given on

a reclaim basis and at 31 March 2015 such deficit balances amounted to £49,000 (2014: £36,000), which lies

within ‘Donations for specified services and equipment’.

138

The amounts included within ‘Group’ represent the net assets at fair value of the associated charities, other

than those held within endowment funds

31March

2014

£’000

Incoming

resources

£’000

Outgoing

resources

£’000

Transfers

£’000

Gains (losses) £’000 31March

2015 £’000

Sunshine 350 – – – 17 367

Emma Nye 2,899 – – – 249 3,148

Bristol Blind

Fund

105 – – – 9 114

Eagle-Bott

Memorial

628 – – – 40 668

Dr Duncan

Leeds Bequest

1,177 – – – 76 1,253

GDC Rushton 169 – – – 14 183

Total

endowment –

5,328 – – – 405 5,733

139

RNIB

CIB 1 – – – – 1

Total

endowment –

Group and RNIB

5,329 – – – 405 5,734

We apply a total return approach to The Sunshine Endowment Fund. In the year this resulted in the release

of the unapplied total return amounting to £nil (2014: £31,000) to general funds. Within the balance at 31

March 2015, the value of the gift element of the permanent endowment was £323,000 (2014: £323,000) and

the unapplied total return was £44,000 (2014: £27,000).

140

Summary

31March

2014 £’000

Incoming

resources £’000

Outgoing

resources £’000

Transfers

£’000

Gains

(losses)

£’000

31March

2015 £’000

RNIB

Unrestricted 75,670 77,433 77,579 69 4,047 79,640

Restricted 4,458 12,028 12,238 (69) 2 4,181

Endowment 5,328 – – – 405 5,733

Total 85,456 89,461 89,817 – 4,454 89,554

Group

Unrestricted 75,670 77,521 77,667 69 4,047 79,640

Restricted 25,335 36,944 40,878 (69) (990) 20,342

Endowment 5,329 – – – 405 5,734

Total 106,334 114,465 118,545 – 3,462 105,716

141

21. Analysis of net assets between funds

Group fund balances

are represented by:

Unrestricted

funds £’000

Restricted

funds £’000

Endowment

funds £’000

Total funds

2015 £’000

Total funds

2014 £’000

Tangible fixed assets 60,604 13,382 – 73,986 76,237

Investments 9,637 9,424 5,734 24,795 33,833

Net current assets 15,836 1,857 – 17,693 12,271

Long-term liabilities (19,026) – – (19,026) (20,000)

Defined benefit

pension scheme asset

12,596 (4,321) – 8,275 3,993

Non-controlling interest

in net assets

(7) – – (7) –

Total net assets 79,640 20,342 5,734 105,716 106,334

142

RNIB fund balances

are represented by:

Unrestricted

funds £’000

Restricted

funds £’000

Endowment

funds £’000

Total funds

2015 £’000

Total funds

2014 £’000

Tangible fixed assets 60,395 – – 60,395 62,320

Investments 9,642 2,840 5,733 18,215 24,644

Net current assets 16,033 1,341 – 17,374 12,010

Long-term liabilities (19,026) – – (19,026) (20,000)

Defined benefit

pension scheme asset

12,596 – – 12,596 6,482

Total net assets 79,640 4,181 5,733 88,554 85,456

22. Pension costs

The RNIB Group pension arrangements comprise those of RNIB and the associated charities, RNIB Charity,

Action and CIB. A summary of the movement in pension assets and liabilities for the Group’s defined benefit

pension funds is shown below:

143

Amounts charged to

SoFA £’000

Actuarial gains

(losses) £’000

Defined Benefit Pension Scheme

asset (liability) £’000

RNIB 1,804 3,435 12,596

RNIB Charity – – –

Action schemes one

and three

(56) (1,481) (2,892)

CIB 10 (78) (737)

Academy Trust 76 (86) (692)

Total defined benefit

schemes

1,834 1,790 8,275

144

RNIB The RNIB Retirement Benefits Pension Scheme (RBPS) is partly defined benefit

and partly defined contribution. Members joining before 1 April 2005 are wholly

defined benefit, with those members joining after, having a hybrid of defined

benefit and defined contribution. The assets of the scheme are held in a

separate fund, under control of its Trustees, to which RNIB has no access. A

salary sacrifice arrangement was introduced 1 July 2010 whereby the member’s

salary is reduced by the amount of the member contribution and in return the

employer makes an equivalent contribution to the scheme.

An actuarial valuation was carried out at 31 March 2014 by the pension

scheme’s actuary Aon Hewitt, using the projected unit method. The valuation

disclosed that the market value of the scheme’s assets (excluding defined

contribution and additional voluntary contribution assets) at that date was

£175.9million, and that there was a surplus of £0.6million relative to the

technical provisions (the level of assets agreed by the Trustees and RNIB as

being appropriate to meet member benefits, assuming the scheme continues as

a going concern). Contributions by RNIB therefore reduced to 12.5 per cent for

the future accrual of final salary benefits from 1 January 2015. As of 1 January

2015 RNIB also ceased to make additional contributions of £828,000 a year that

were due to be paid until 30 June 2018.

Following the merger with NLB, RNIB also offers the Pensions Trust’s Growth

Plan. The Growth Plan is a multi-employer pension plan under which

contributions are invested in personal funds which have a capital guarantee and

convert to a pension on retirement. No contributions are currently required into

the Plan, but the Pensions Trust has advised that in the event of a withdrawal

from the Plan, or in the event of the Pensions Trust being wound up, RNIB

would have liability to pay a share of the accumulated deficit in the Plan, which

145

is estimated at £927,000 based on the valuation of the Plan as at 30 September

2014.

RNIB also participates in the Teachers’ Pension Scheme, a defined benefit

scheme for employees who were formerly employed by local education

authorities. The Teachers’ Pension Scheme is an unfunded scheme.

Contributions on a ‘pay as you go’ basis are credited to The Exchequer under

arrangements governed by The Superannuation Act 1972.

RNIB has an auto-enrolment pension scheme which is administered by the

National Employment Savings Trust (NEST). This is a defined contribution

scheme. In the year, RNIB contributed £111,000 on behalf of 1,058 employees.

RNIB Charity RNIB Charity participates in the RNIB Retirement Benefits Scheme. This is a

hybrid scheme for members joining after 1 April 2005 and a defined benefit

scheme for prior entrants. The assets and liabilities of the scheme are

accounted for within the Group accounts. The charity is unable to identify, on a

reasonable and consistent basis, its share of the underlying assets/liabilities as

such information is unavailable on a disaggregated basis. Therefore, RNIB

Charity has accounted for contributions as if the scheme were a defined

contribution scheme. During the year contributions of £1,703,000 were paid into

the scheme on behalf of the charity.

Action Action participates in five pension schemes and the assets of all the schemes

are held separately from those of RNIB. Scheme number one is the Action

Defined Benefit Scheme which was offered through the Pensions Trust. The

scheme has been closed to new members since 1 October 1997. Scheme

number two is the Action for Blind People money purchase scheme and is open

146

to existing and new employees. It is currently substantially all invested in the

Pensions Trust Growth Series 3 Scheme. Due to its capital guarantee, this

scheme differs in some important respects from a standard Defined Contribution

Scheme, and following legislation in 2011 is now classified legally as a Defined

Benefit Scheme. Action is unable to identify, on a reasonable and consistent

basis, its share of the underlying assets because the Pensions Trust does not

provide such information as this is unavailable on a disaggregated basis.

Accordingly, due to the nature of the scheme, Action has accounted for

contributions as if the scheme were a Defined Contribution Scheme. Members

contributions are not fixed, employees are able to make contributions up to 10

per cent of their salaries.

Scheme number three is a defined benefit scheme operated by Wiltshire County

Council and related to staff transferred from Shelwork Industries on 1 April 2000.

The Shelwork factory operation has ceased trading and therefore the majority of

the members of the scheme are no longer employees of Action.

Scheme number four is the RNIB Retirement Benefits Pension Scheme of which

Action became an Employer on 1 April 2009 pursuant to the Transfer of

Undertakings Agreement whereby 118 scheme members transferred by TUPE

to Action. With regard to Action it closed to new members with immediate effect

from 1 April 2009. Under the Association Agreement with RNIB, the deficit on

the scheme disclosed by the Triennial Actuarial Valuation at 31 March is the

responsibility of RNIB. The FRS17 review of the whole scheme at 31 March

2015 produced a surplus of which £45,000 (2014: £22,000) is attributable to

Action. Action also participates in the Teachers’ Pension Scheme, a defined

benefit scheme for employees who were formerly employed by local education

authorities. The Teachers’ Pension Scheme is an unfunded scheme.

Contributions on a ‘pay as you go’ basis are credited to the Exchequer under

arrangements governed by the Superannuation Act 1972.

147

CIB CIB is a participant within the defined benefit scheme ‘Cardiff and Vale of

Glamorgan Pension Fund’ which is part of the Local Government Pension

Scheme.

CIB has a defined contribution pension scheme with Scottish Widows. In the

year, CIB contributed £3,000 on behalf of one employee.

RNIB Specialist Learning Trust RNIB Specialist Learning Trust is a participant within the defined benefit scheme

‘West Midlands Pension Fund’ which is part of the Local Government Pension

Scheme.

RNIB Specialist Learning Trust also participates in the Teachers’ Pension

Scheme, a defined benefit scheme for employees who were formerly employed

by local education authorities. The Teachers’ Pension Scheme is an unfunded

scheme. Contributions on a ‘pay as you go’ basis are credited to The Exchequer

under arrangements governed by The Superannuation Act 1972.

The following tables, and narrative, provide the detailed disclosures that relate

to the RNIB Retirement Benefit Scheme. The column headed “Associated

charities” refers to Action’s schemes one and three, together with that for CIB.

Together these explain the Group’s pension costs

a. Scheme assets and liabilities RNIB

£’000

Associated

charities £’000

Total

£’000

2015

Scheme assets at fair value

Equities 78,252 8,843 87,095

148

Corporate and other bonds – 3,077 3,077

Fixed interest gilts – 88 88

Index-linked gilts 53,858 3,325 57,183

Property (including unit trusts) 16,121 1,238 17,359

Infrastructure 20,215 – 20,215

Standard Life GARS 17,769 – 17,769

Legal and General Real and

Inflation linked funds

25,540 – 25,540

Cash and other (including net

current assets)

1,051 169 1,220

Total market value of scheme

assets

212,806 16,740 229,546

Present value of scheme liabilities (200,210) (21,061) (221,271)

Net pension scheme asset

(liability)

12,596 (4,321) 8,275

b. Scheme assets and liabilities RNIB

£’000

Associated

charities £’000

Total £’000

2014

149

Scheme assets at fair value

Equities 103,282 8,550 111,832

Corporate and other bonds 16,511 5,105 21,616

Fixed interest gilts – 80 80

Index-linked gilts 40,464 – 40,464

Property (including unit trusts) 14,085 1,086 15,171

Cash and other (including net

current assets)

1,415 93 1,508

Total market value of scheme

assets

175,757 14,914 190,671

Present value of scheme liabilities (169,275) (17,403) (186,678)

Net pension scheme asset (liability) 6,482 (2,489) 3,993

The assets of the RNIB Scheme are held with Legal and General plus

BlackRock (for equities, bonds and properties). The defined benefit assets are

invested according to the Statement of Investment Principles agreed by the

scheme Trustees. This sets a benchmark allocation of assets. The defined

contribution assets are invested in line with member instructions. RNIB employs

a building block approach in determining the long-term rate of return on pension

plan assets. Historical markets are studied and assets with higher volatility are

assumed to generate higher returns consistent with widely accepted capital

market principles.

150

c. Analysis of charge to the

SoFA

RNIB

£’000

Associated charities

£’000

Total

£’000

Year to 31 March 2015

Current service cost 3,610 153 3,763

Interest cost 7,430 768 8,198

Expected return on scheme

assets

(9,236) (891) (10,127)

Expense recognised in SoFA 1,804 30 1,834

Year to 31 March 2014

Current service cost 3,747 174 3,921

Interest cost 7,209 760 7,969

Expected return on scheme

assets

(8,643) (832) (9,475)

Expense recognised in SoFA 2,313 102 2,415

The above service cost excludes any RNIB contributions paid to the defined

contributions section of the scheme.

RNIB contributed to the scheme at the rate of 12.9 per cent of pensionable

salaries until 31 December 2014 and then contributed at the rate of 12.5 per

cent of pensionable salaries. These rates include the cost of death in service

insurance cover. During the year RNIB contributed £4,483,000 (2014:

£4,878,000) to the scheme, and in the next year RNIB expects to contribute

£3,195,000. In addition, RNIB, RNIB Charity and Action share the administrative

151

costs of the scheme. In 2010, as a part of the recovery plan it was agreed that

RNIB would make additional annual contributions of £1million over 17 years,

and these contributions are included in the amounts that RNIB contributed to the

scheme, referred to above. From 1 April 2013 these additional contributions

reduced to £828,000 per year until 30 June 2018. From 1 January 2015 these

additional contributions were removed. From 1 July 2010 under the RNIB salary

sacrifice arrangement employer contributions and service cost include the

member salary sacrifice contributions while member contributions are shown as

£nil. RNIB also makes contributions to a number of other pension schemes

including the Teachers’ Pension Scheme. The Teachers’ Pension Scheme is a

defined benefit scheme for employees who were formerly employed by local

education authorities. The Teachers’ Pension Scheme is an unfunded scheme.

Contributions on a ‘pay-as-you-go’ basis are credited to the Exchequer under

arrangements governed by the Superannuation Act 1972. RNIB made

contributions to the Teachers’ Pension Scheme for 28 employees (2014: 30)

totalling £134,000 (2014: £123,000). In addition, Action made contributions for

one employee totalling £7,000 (2014: two employees totalling £13,000) to the

Teacher’s Pension Scheme

d. Analysis of actuarial gains and losses RNIB

£’000

Associated

charities £’000

Total

£’000

Year to 31 March 2015

Experience gains on scheme assets 27,780 1,340 29,120

Experience gains on scheme liabilities (1,299) (245) (1,544)

Losses on scheme liabilities arising out

of changes to the actuarial assumptions

152

used (23,046) (2,740) (25,786)

Total actuarial gain (loss) 3,435 (1,645) 1,790

Year to 31 March 2014

Experience gains on scheme assets 2,048 66 2,114

Experience gains on scheme liabilities 707 164 871

(Losses) gains on scheme liabilities

arising out of changes to the actuarial

assumptions used

(3,233) 226 (3,007)

Total actuarial (loss) gain (478) 456 (22)

In accordance with the requirements of FRS17 the full actuarial valuation at 31

March 2009 was updated by Aon Hewitt at 31 March 2013. The principal

assumptions they used for this purpose are summarised in the following table.

e. Actuarial assumptions 2015

RNIB

per cent

2014

RNIB

per

cent

2015

Associated

charities

per cent

2014

Associated

charities per

cent

Discount rate 3.40 4.40 3.10–4.80 4.10–4.40

Inflation assumption (RPI) 2.95 3.35 2.90–3.00 3.30

Inflation assumption (CPI) 1.95 2.35 1.80–2.50 2.30–2.60

Rate of increase in salaries 2.95 3.35 2.80–4.25 3.30–4.40

153

Rate of increase in pensions

payments

Pre-1 July 2010 – 5 per cent

p.a. cap

2.80 3.05 – –

Post-30 June 2010 – 3 per cent

p.a. cap

2.10 2.25 1.80–2.50 2.30–2.60

Rate of increase in deferred

pensions

Pre-1 July 2010 – 5 per cent

p.a. cap

2.95 3.35 – –

Post-30 June 2010 – 3 per cent

p.a. cap

2.95 3.00 1.80–3.00 2.30–3.30

For the RNIB scheme the mortality assumptions are based on standard mortality

tables which allow for future mortality improvements.

The assumptions are that a member currently aged 60 will live on average for a

further 27.4 years if they are male and for a further 29.4 years if they are female.

For a member who retires in 2033 at age 60 the assumptions are that they will

live on average for a further 28.4 years after retirement if they are male and for a

further 31.1 years after retirement if they are female, as last year.

For schemes offered by the Associated Charities, for current pensioners, their

life expectancy beyond the pensionable age of 65 ranges between 22.3 to 23.8

years if they are male, and 24.5 to 26.7 years if they are female. For future

pensioners their life expectancy beyond the pensionable age of 65 ranges

154

between 24.1 to 25.8 years if they are male and 26.5 to 29.0 years if they are

female.

f. Changes to the present value of

the defined benefit obligation

RNIB £’000 Associated

charities

£’000

Total

£’000

As at 1 April 2013 160,826 17,461 178,287

Current service cost 3,747 174 3,921

Interest cost 7,209 760 7,969

Contributions by scheme

participants

149 25 174

Actuarial gain (loss) on scheme

liabilities

2,526 (390) 2,136

Net benefits paid out (5,182) (627) (5,809)

As at 31 March 2014 169,275 17,403 186,678

Current service cost 3,610 153 3,763

Interest cost 7,430 768 8,198

Contributions by scheme

participants

138 25 163

Actuarial gain on scheme liabilities 24,345 2,985 27,330

Net benefits paid out (4,588) (899) (5,487)

Business combinations – 626 626

155

As at 31 March 2015 200,210 21,061 221,271

g. Changes to the fair value of

scheme assets during the year

RNIB £’000 Associated

charities

£’000

Total

£’000

As at 1 April 2013 165,221 14,263 179,484

Expected return on scheme assets 8,643 832 9,475

Contributions by the employer 4,878 355 5,233

Contributions by scheme

participants

149 25 174

Actuarial gain on scheme assets 2,048 66 2,114

Net benefits paid out (5,182) (627) (5,809)

As at 31 March 2014 175,757 14,914 190,671

Expected return on scheme assets 9,236 891 10,127

Contributions by the employer 4,483 418 4,901

Contributions by scheme

participants

138 25 163

Actuarial gain on scheme assets 27,780 1,340 29,120

Net benefits paid out (4,588) (899) (5,487)

Business combinations – 51 51

156

As at 31 March 2015 212,806 16,740 229,546

Actual return on scheme assets

2014 10,691 898 11,589

2015 37,016 2,231 39,247

h. Historical

scheme

information

2015 £’000 2014

£’000

2013

£’000

2012 £’000 2011

£’000

RNIB

Fair value of

scheme assets

212,806 175,757 165,221 148,987 136,592

Defined benefit

obligation

(200,210) (169,275

)

(160,826) (160,533) (134,869)

Surplus (deficit) in

the scheme

12,596 6,482 4,395 (11,546) 1,723

Gain on scheme

assets

27,780 2,048 8,110 3,405 1,318

(Loss) gain on

scheme liabilities

(24,345) (2,526) 7,193 (18,865) 7,804

Total actuarial gain

(loss) in year

3,435 (478) 15,303 (15,460) 9,122

Cumulative amount

of loss recognised

(5,513) (8,948) (8,470) (23,773) (8,313)

157

in SoFA

Associated

charities

Fair value of

scheme assets

16,740 14,914 14,263 13,018 12,880

Defined benefit

obligation

(21,061) (17,403) (17,461) (15,985) (15,194)

Deficit in the

scheme

(4,321) (2,489) (3,198) (2,967) (2,314)

Gain (loss) on

scheme assets

1,340 66 756 (402) 156

(Loss) gain on

scheme liabilities

(2,985) 390 (1,124) (413) 1,034

Total actuarial

(loss) gain in year

(1,645) 456 (368) (815) 1,190

Cumulative amount

of loss recognised

in SoFA

(4,345) (2,700) (3,156) (2,788) (1,973)

The historical scheme information under ‘Associated charities’ for 2009 excludes

some information relating to CIB as this was not available.

158

23. Group commitments

a. CapitalAt the year-end, RNIB has no outstanding commitments (2014: £nil). At the

year-end no associate or subsidiary entities have any outstanding commitments

(2014: £nil).

b. Operating leases At the year-end, the Group had the following annual commitments amounting to

£1,535,000 (2014: £1,450,000) under non-cancellable operating leases.

2015 £’000 2014 £’000

Land and buildings

Expiring within one year 246 81

Expiring between two and five years 458 738

Expiring after five years 391 299

Vehicles

Expiring within one year 26 52

Expiring between two and five years 294 207

Equipment

Expiring within one year 39 39

Expiring between two and five years 81 34

Total 1,535 1,450

159

24. Contingent liabilities

As at 31 March 2015 other than the Pensions Trust Growth Plan contingent

liability disclosed in the ‘Pension costs’ note (note 22) there is a liability in

respect of CIB relating to the Cardiff and Vale County Council Pension Scheme

additional employers contributions amounting to £nil (2014: £65,700).

25. Grants receivable

During the year, RNIB received a number of grants and other funding resources,

which are required by the donors to be shown in our annual financial

statements.

Source Purpose £’000

Big Lottery Fund AdvantAGE Wales Eye Patient

Advocacy Service

67

Basic Online Skills: Online Today! 472

Bright New Futures: Future In-Sights 196

Connecting Older People: Looking

Forward

170

Empowering Young People

Programme: Realise

108

Investing in Communities: Looking to

the Future

85

160

People and Places – All Wales Welfare

Rights Service for

People with Sensory Loss

150

Safe and Well Programme: Lisburn in

Focus Northern Ireland

133

Support and Connect: Advice Plus 130

Young Start Programme: Education,

Respect and Awareness

21

Big Lottery Fund – Reaching

Communities

Trainee Grade Scheme: Extending the

Reach

112

Heritage Lottery Fund CultureLink South East 21

Seeing our History Scotland 28

European Social Fund Eye Work 201

Special EU Programmes Sensory Engagement Programme 5

European Union (Lifelong

Learning)

VISAL 25

29 May 1961 CT General support 5

Alcon Eye Health Projects 31

Vision Conference 5

Allergan Eye Health Projects 88

Awards for All Family activity days 5

161

Awareness Fund Employment 8

Source Purpose £’000

B & P Glasser CT General support 5

Barbour Paton CT General support 66

Bayer Eye Health Projects 21

Vision Conference 10

BBC Children in Need Building parent and peer support for

blind and partially

sighted children

24

Bòrd na Gàidhlig – Taic

Freumhan Coimhearsnachd

Gaelic Transcription

1

Bradford Clinical Commissioning

Group

Diabetes Self Help Folder and

Coaching

43

Brian Mercer CT Children’s Giant Print 15

British Council Youth in Action

Northern Ireland

Seeing Eye to Eye

4

Carmen Butler Charteris CT General support 35

Chalcroft General support 5

Children & Young People’s

Strategic Partnership, Health and

Family support

162

Social Care Board 11

Constance Travis Trust Housing – London and South East 6

Coopers Hill Trust General support 6

Creative Scotland Public Engagement fund: the Arts

Gallery

5

Department of Health

(Innovation, Excellence and

Strategic Development)

Commissioning for Effectiveness and

Efficiency 74

EIRECS Early Intervention and

Rehabilitation in Eye Care Services

37

Electronic Certification of Visual

Impairment

80

Support for Early Reach in Clinics and

Hospitals (Search) Project

68

Source Purpose £’000

Dickinson CT General support 6

Dundee Reshaping Care for

Older People: Capacity Building

Fund

Dundee Carers Champions

9

Edith Lilian Harrison 2000 National Talking Newspapers 10

163

Foundation and Magazines

Florence Violet McCaffery Trust General support 40

Harbell Centenary Fund National Talking Newspapers

and Magazines

7

Highland Trust General support 7

HMRC Right First Time Project 55

Targeted tax help for people

with sight loss

85

Hugh Fraser Foundation Vision support Tayside 5

Inman Charity National Talking Newspapers

and Magazines

5

Jack Simmons Will CT Talking Books 8

Liz & Terry Bramhall

Foundation

Talking Books 10

Loppylugs & Barbara Morrison

CT

General support 7

Melbreak Trust Housing 5

Middleton for the Blind Manchester Team 12

Miss Kathleen Beryl Sleigh CT General support 7

164

Mr & Mrs J T Morgan

Foundation

Housing 5

Myristica Trust Talking Books 5

NHS Fife Carers Fund Bridge to Vision 2014 23

RNIB Carers Café 2014 5

Source Purpose £’000

NESTA Time to Talk 130

Norman Dawson CT Giant Print 5

Northwood CT Pathways Fife 7

Novartis Pharmaceuticals UK

Ltd

Economic research on the impact

of Eye Clinic Liaison Officers

101

Eye Health Projects 57

Contribution towards the

development and suitability

of Vision Support Service in

Scotland

50

PF CT Employment 5

General support 5

Peacock CT National Talking Newspapers and

Magazines

11

165

R H Scholes CT Load2Learn 5

Relief in Sickness Fund General support 5

Roger de Haan CT RNIB Read Kent 5

Scottish Government Autism

Strategy Fund

Autism Development Fund 51

Scottish Government Self

Directed

Support Fund

Self Directed Support

77

Scottish Government –

Sensory Impairment Strategy

Fund

Bridge to Vision Dementia Project

80

Scottish Government –

Voluntary Sector Development

Fund

Investment in staff training

16

Scottish Natural Heritage –

Natural Project Grant

Year of Natural Heritage – Insight

Outdoors 6

Self Management IMPACT

Fund

for Scotland

You Care Eye Care

22

Shared Care Scotland – Better

Breaks Fund

RNIB Activate 2014 40

166

Source Purpose £’000

Shenmore Trust Talking Books 10

Smith CT General support 5

Southern Trust Parenting Education and Support 56

State Street Community Support

Programme

Provide non-residential courses

to blind and partially sighted

jobseekers across Scotland

28

Thornton Foundation Housing 5

WT Mattock CT Talking Books 10

Wales Council for Voluntary Action –

European Social Fund, Engagement

Gateway Phase II

Engagement Gateway for blind

and

partially sighted people 4

Wales Council for Voluntary Action –

European Social Fund, Intermediate

Labour Market

ILM for blind and partially sighted

people

9

Wales Council for Voluntary Action –

GwirVol

Young Person’s Ambassadors

Project 10

Weinstock Fund Housing 8

Welsh Government – CFOG Children and Families

Organisational Grant

47

Welsh Government Get On Board 10

167

Welsh Government – SHMG Learning Disabilities Guidance 5

Welsh Government – Section 64 North Wales Partnership and

Development

29

Youth Council for Northern Ireland Work It Out 5

Policy on relationships with pharmaceutical companies RNIB provides services to those with sight problems, works to prevent avoidable

blindness, and campaigns for positive change. These functions will not be

influenced in any way by our relationship with pharmaceutical companies or by

acceptance of grants or sponsorships from them.

We will withdraw from any initiative that jeopardises our independence. RNIB

will not embark on, or continue with, any sponsorship arrangement or

collaborative venture which might damage its independence. Alcon, Allergan,

Bayer and Novartis Pharmaceuticals UK Ltd are all pharmaceutical companies.

RNIB Acknowledges support from Department for Employment and Learning NI and European Union European

Social Fund for Eye Work

Shared Care Scotland – Better Breaks Fund for RNIB Activate 2013

Department of Social Development for Campaigner’s Active Network

Bòrd na Gàidhlig – Taic Freumhan Coimhearsnachd for Gaelic Transcription

Voluntary Action Fund and Glasgow Third Sector for Looking Forward 2012

Scottish Natural Heritage for Insight Outdoors

Scottish Government for the following projects: Bridge to Vision Dementia

Project, Autism Champions, Self Directed Support and Insight to Health

Interreg for Sensory Engagement Programme

168

European Social Fund Wales for Engagement Gateway for Blind and Partially

Sighted

Wales Council for Voluntary Action – GwirVol for Transcription

Centre Volunteering Opportunities Governance and financials

Big Fund – Young Start for Education, Respect and Awareness (ERA)

Arts Council England for Opening Up Creative Culture

Heritage Lottery Fund for the following projects: A Sense of the Past, Museums

In Focus and CultureLink South East

Big Lottery Fund for Future In-Sight and Wales Eye Patient Advocacy Service

Big Lottery Fund for the following projects: Looking Forward, Realise, Lisburn in

Focus , Talk and Support – Supporting our Volunteers through Mentoring,

Trainee Grade Scheme – Extending the Reach, and OPTiC (Older People

Taking Control)

Awards For All for Connecting Communities

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Who’s who at RNIB Patron, President and Vice-Presidents Patron HM The Queen

PresidentDame Gail Ronson DBE

Vice Presidents Sir John Beckwith CBE

The Rt Hon David Blunkett

Richard Brewster

Professor Ian Bruce CBE

Jeremy Bull Haruhisa Handa

Dr Euclid Herie

Lady Jarvis

Penny Lancaster-Stewart Lord Low of Dalston CBE

Trevor Pears CMG

Sir Mike Rake

Dr Dermot Smurfit

Rod Stewart CBE

The Rt Hon Earl of Stockton

Sir Duncan Watson CBE (until 22 April 2015)

His Grace The Duke of Westminster KG, CB, CVO, OBE, TD, CD, DL

Honorary officers Kevin Carey MA (Cantab) MA (Kings College, London) –RNIB Group Chair

Derek Child MA – RNIB Group Vice-Chair, Internal Affairs (until 30 June 2014)

Eleanor Southwood MA (Oxon) – RNIB Group Vice-Chair, External Affairs (until

30 June 2014) RNIB Group Vice-Chair (from 1 July 2014)

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Terry Moody BA, MA – RNIB Honorary Treasurer (until 29 May 2014)

Alan Tinger FCA CCMI – RNIB Honorary Treasurer (from 1 July 2014)

Chief Executive Officer and members of Strategic Management Team Chief Executive Officer Lesley-Anne Alexander CBE MSc

Group Director, Fundraising Wanda Hamilton BA (Law) MInstF

Group Director, People Corinne Mills Chartered FCIPD (from 1 April 2015)

Group Director, Resources Keith Hickey BSc MSc FCCA DChA (until 23 April

2015)

Rohan Hewavisenti M.Eng ACA (from 24 April 2015)

Management Director, Engagement, RNIB Charity Fazilet Hadi BA (Hons)

Managing Director, Places, RNIB Charity Sally Harvey BA (Hons)

Managing Director, Solutions, RNIB Charity Neil Heslop OBE LLB (Hons) MBA

CIM (Dip.M)

Chief Executive, Action for Blind People Miriam Martin

Professional advisers

Independent Auditors PricewaterhouseCoopers LLP 1 Embankment Place London WC2N 6RH

Investment advisers AON Hewitt Ltd 3 The Embankment Sovereign Street Leeds LS1 4BJ

Property advisers Knight Frank 55 Baker Street London W1U 8AN

SolicitorsBates Wells & Braithwaite 2-6 Cannon Street London EC4M 6YH

SolicitorsFarrers & Co 66 Lincolns Inn Fields London WC2A 3LH

Actuary advisers Towers Watson 21 Tothill Street London SW1H 9LL

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Bankers Royal Bank of Scotland plc Marylebone Road and Harley Street Branch 10

Marylebone High Street London W1A 1FH

Governance and financials Board of Trustees

Members of the Board of Trustees during the financial year are listed below.

Following a re-structure within RNIB Group the Board was reconstituted with 10

Trustees with effect from 1 July 2014. A number of Trustees ceased to be

members of the RNIB Group Board of Trustees on that date and were appointed

to the newly established RNIB Charity Board of Trustees. The number in

brackets after each name represents attendance at Board of Trustee meetings

during 2014/15 of those they were eligible to attend. Current members of the

Board of Trustees together with a brief biography of each individual are listed

first below. Full details of membership of committees are available from the

Governance team at RNIB’s Judd Street address. 80 per cent of the Board are

blind or partially sighted.

Kevin Carey RNIB Group Chair (4 of 5) Kevin Carey is in his second term as Chair of the RNIB Group, having held this

office since 2009, prior to which he was Vice-Chair from 2000/09. He also chairs

RNIB’s Governance and Remuneration Committees, and the UK Members’

Forum. He is the President of the Transforming Braille Group LLC and a Trustee

of G3ict. He is Chairman of the Government’s Alliance for Digital Accessibility

and a regular contributor to Ability magazine. Kevin has published nine books

and is a Lay minister in the Church of England. Born with little sight, he lost his

residual vision in his mid 20s. He lives with his wife Margaret in Sussex. Kevin is

also a Trustee of RNIB Charity.

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Eleanor Southwood RNIB Group Vice-Chair from 1 July 2014 (3 of 5) Ellie became a Trustee in 2010. Following two years as RNIB Vice-Chair -

External Affairs, she became Vice-Chair of the newly constituted RNIB Group

Board in July 2014. She is a governor of RNIB Sunshine House School. Ellie’s

career spans the public, private and non-profit sectors. She is currently a

consultant to non-profit organisations on senior recruitment, executive team

development and organisational change. Ellie’s commitment to the RNIB Group

comes from personal experience, having been born with no useful sight. She is

passionate about improving opportunities for blind and partially sighted people,

particularly in overcoming barriers to employment. Ellie is also a Trustee of

RNIB Charity.

Alan Tinger Honorary Treasurer from 1 July 2014 (2 of 4) Alan is a Chartered Accountant and a Companion of the Chartered

Management Institute. He spent many years in Board roles in Corporate

Opticians Groups and is currently Chairman of the LOC Central Support Unit

(LOCSU) which supports Local Optical Committees in England, particularly in

commissioning optical community services, a Director of the Federation of

(Ophthalmic and Dispensing) Opticians (FODO), and a member of the Optical

Confederation Leaders Group. He has kept up his long standing interest in

taxation, corporate structures, governance and optical regulation and is a

Consultant to FODO on finance, taxation, professional liability, legal defence

and the future of the optical market. Alan is also a Trustee of Action for Blind

People and Chair of a Registered Housing Association.

Margaret Bennett (5 of 5) Margaret is in her second term of office as a Trustee, having first been

appointed to the Board in 2010. She is the Chair of RNIB’s Places Standing

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Board. A Chartered Accountant by profession, her portfolio of work includes

Finance Director of Tinder Foundation and acting as a mentor and coach for

voluntary sector leaders. Previous roles included Deputy Chief Executive of the

Learning and Skills Improvement Services, a senior Civil Servant and Chief

Executive of the National Library for the Blind. She lives in Sheffield and is

partially sighted. Margaret is also a Trustee of RNIB Charity.

Simon Finnie (5 of 5) Simon is in his first term of office as a Trustee, having been appointed to the

Board in 2014. He is the Chair of RNIB’s Solutions Standing Board. Simon is the

Group Performance Director for Kier, the FTSE-250 Construction and Services

Group. As part of Kier’s Executive Management Team, he is responsible for

driving the strategic improvement agenda across the whole organisation,

specifically by identifying opportunities for margin enhancement, leading the

delivery of transformation programmes, evaluating acquisition and divestment

opportunities. He has over 15 years’ experience across a wide range of sectors.

He is married with children and lives in Hertfordshire. Simon is also a Trustee of

RNIB Charity.

Dr Heather Giles (3 of 5) Heather is in her second term of office as a Trustee, having been re-appointed

to the Board in 2014. She is the Chair of RNIB’s Engagement Standing Board.

Professionally, she has held senior scientific positions in the pharmaceutical

industry and has a PhD in Pharmacology. She is currently Chief Scientific

Officer for a small pharmaceutical company. Heather has a personal

understanding of the challenges facing people with sight loss because she is

partially sighted herself, and also, even before becoming a Trustee, she was

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supporting RNIB’s work as a local campaigns volunteer. She lives in London

and is also a Trustee of RNIB Charity.

Vidar Hjardeng MBE (4 of 5) resigned 23 May 2014, reappointed 1 July 2014 Vidar has a long-previous association with RNIB, having served on the Board in

the past. He returned to the Board in July 2014 as one of two new independent

Trustees. A broadcast journalist by profession, he is now a consultant with ITV

News and has spent much of his career working for the broadcaster nationally

and regionally. He lives in the Midlands and with personal experience of visual

impairment, is proud of his association with charities working with, and for,

fellow blind and partially sighted people, including Focus Birmingham, for which

he now works as an External Relations Consultant on a part-time basis, the

National Audio Description Charity, and Vocal Eyes which he chaired for four

years up until 2012. Vidar is an independent Trustee of RNIB.

Terry Moody (5 of 5) resigned 29 May 2014, reappointed 1 July 2014 Terry has a long involvement with RNIB’s governance having served three

terms as RNIB Group’s Honorary Treasurer. He rejoined the Board as an

independent Trustee in July 2014. With an academic background in economics

and finance, he has recently retired from Glasgow University where he was a

senior lecturer in economics. He is blind, married with a son and lives in

Glasgow. Terry is an independent Trustee of RNIB.

Dr Mike Nussbaum (5 of 5) Mike joined the Board in May 2011 and is the Chair of Action for Blind People,

one of RNIB’s Associate Charities. He was forced to cut short his career as a

research chemist after his eyesight suddenly failed. However, he soon forged a

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second career in local government and public policy development. He was Chair

of Volunteering England for seven years until September 2009 and therefore,

very ably equipped to fulfil his role as RNIB’s Trustee volunteering champion.

Mike holds a number of other appointments including as a Trustee of Guide

Dogs for the Blind Association, a Trustee of Vision 2020 UK and the Equality

and Diversity Forum.

David Quigley (5 of 5) David joined the Board in 2012, following election by the UK Members’ Forum.

He graduated from Magdalen College, Oxford, with a Masters degree and three

scholarships in History. He is also a graduate of the Chartered Institute of

Personnel and Development and a member of the Institute of Healthcare

Management. He has 30 years of NHS general management experience,

including roles as executive commissioning director and primary care director

and specialised in service redesign, performance improvement and turnaround.

He is registered with severe sight impairment and lives with his wife in

Greenwich, London. David is also a Trustee of RNIB Charity.

The following members served on the Board until the date shown: Linda Bancroft (1 of 1) (until 30 June 2014)

Derek Child (1 of 1) (until 30 June 2014)

Ian Jentle (1 of 1) (until 30 June 2014)

Tanya Lawler (0 of 1) (until 30 June 2014)

David Mann (1 of 1) (until 30 June 2014)

Ken Reid (1 of 1) (until 30 June 2014)

Tony Rucinski (1 of 1) (until 31 May 2014)

Paul Ryb (0 of 1) (until 30 June 2014)

Mike Townsend (0 of 1) (until 30 June 2014)

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Independent members of the Audit Committee Michael Barber

Nick Goddard

Frances Teague

UK Members’ Forum Our UK Members’ Forum gives us a closer rapport with our membership. The

forum is a place for membership representatives to come together and discuss

the issues of importance to them. These issues then go forward to the Board of

Trustees. It gives our members a direct link to RNIB’s most senior governing

body and helps identify and shape major strategy, policy and service issues.

The UK Members’ Forum meets twice a year (one meeting includes the Annual

General Meeting). It is supported by local member forums – nine in England,

one in Northern Ireland, one in Scotland and one in Wales. As well as enabling

our members to have a direct role in shaping our strategy, the UK Members’

Forum increases opportunities for interaction between members at a local and

national level. All members are invited to the forum meeting in their region or

country, and each forum chooses its representatives to the UK Members’

Forum.

UK Members’ Forum Representatives South East Timothy Bamber

Kevin Deacon

Brian Payne (until 31 December 2014)

Mike Pearson (Region chair)

Michael Radford (from 1 January 2015)

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South WestElli Bennett (from 1 July 2014)

Helen Mathias David Ridgway

John Vickery (Region chair)

London Maggy Bower (until 30 June 2014)

Elizabeth Cooke Jim Leeder

Jackie Venus (Region chair)

East of England Michael Cassidy (Region chair)

Marian Knights

Marion Mansfield

Wayne Witney

East Midlands Gordon Chandler

Sophia Chandler (Region chair)

John Godber (from 1 January 2015)

Marcia Holder (until 31 December 2014)

Gena Parker

West Midlands Mohammed Abbas-Rashid

Mike Hughes (from 1 January 2015) (Region chair)

Patricia Mulqueen-Wood

Mark Williams

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Yorkshire and the Humber Liz Frankland

David Haynes

Roy Ruddick BEM

Barbara Stephenson (Region chair)

North West Michael Allen (Region chair)

Anne Bradbury

Hayley Anne Reed

Anne Rigby

North East Peter Bennetts (until 31 December 2014) Jillian Grant (Region chair)

Chris Grethe (from 1 January 2015)

Robert Potter

Denise Ross

Alison Wheatley (from 1 January 2015)

Wales Peter O’Driscoll

Rose Hepburn (until 31 December 2014)

Frances (Faye) Jones MBE

Mark Matthews (from 1 January 2015)

Robert Teague

Scotland Amanda Burt

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Rod Murchison

Hussein Patwa

Sandra Wilson

Northern Ireland Paula Meenan (until 9 September 2014)

Brian Murray (from 1 January 2015)

Jim Nash (from 1 January 2015)

Alan Owens

Contact us RNIB

105 Judd Street London WC1H 9NE t: 020 7388 1266

RNIB Cymru Jones Court Womanby Street Cardiff CF10 1BR t: 029 2082 8500

RNIB Northern Ireland Victoria House 15–17 Gloucester Street Belfast BT1 4LS t: 028 9032 9373

RNIB Scotland Greenside House 12–14 Hillside Crescent Edinburgh EH7 5EA t: 0131 652

3140

National Helpline 0303 123 9999

[email protected]

rnib.org.uk

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Follow us online: This report is available in print, braille and audio CD. To

order contact the RNIB Helpline.

The latest Annual Report and Financial Statements are available to download

from our website in both PDF and Word at rnib.org.uk.

The Word version is available to enable effective use by people who need to

use screen reader technology and are unable to use the PDF.

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from a source you are unsure of, please refer to our website.

© RNIB July 2015 Registered charity numbers 226227 (England and Wales),

SC039316 (Scotland) and 1173 (Isle of Man). PR20400P

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