RNIB Group annual report and accounts 2010/11 RNIB Group annual report and accounts 2010/2011

This Trustees’ report and the 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 1993, as updated by the Charities Act 2006. This report gives details of our work throughout the UK. Contents Chair and Chief Executive introduction 4 Structure and objectives 6 Our work in 2010/11 12 Stopping people losing their sight unnecessarily 12 Supporting independent living 16 Creating an inclusive society 21 Financial review 25 Reducing our impact on the environment 34 Independent auditors’ report to the trustees of RNIB 38 Consolidated statement of financial activities for the year ended 31 March 2011 40 Balance sheets at 31 March 2011 42 Group cashflow statement for the year ended 31 March 2011 44 Notes to the financial statements for the year ended 31 March 2011 46 Who’s who at RNIB 101 Your support 105

3 4 Chair and Chief Executive introduction There is no doubt that this has been a very tough year across the charity sector. This makes us even more proud of some of our fantastic achievements during the year, but along the way we have had to make some hard decisions. These decisions have been made with our overall vision and the needs of blind and partially sighted people at the forefront of our mind. Through the services and campaigning of RNIB, the local services of Action for Blind People and Cardiff, Vales and Valleys and the specialist services of National Talking Newspapers and Magazines, we remain totally committed to delivering our group strategy: stopping so many people losing their sight unnecessarily; making sure the needs of people are better met at the point of diagnosis; supporting people who have lost their sight to lead full and independent lives; improving the support available to people with sight loss and complex needs; and influencing service providers, industries and government to make the world a better place for people with sight problems. Kevin Carey, Chair Although it has been a challenging year and we are preparing ourselves for an even more challenging time ahead, we have still managed some remarkable successes. The development of our school in Coventry has made great strides and is due to be fully operational by the autumn of 2011. The state-of-the-art school and children’s home offers education, care and therapy to children with sight problems and complex needs. This year the school was renamed RNIB Pears Centre for Specialist Learning in recognition of the fantastic support we have received from the Pears Foundation. It is now more important than ever that we continue to provide the services that are so vital to the lives of so many people, such as our information and membership services which dealt with almost half a million enquiries this year, giving people with sight problems the support and advice they need. We sent out over 1.7 million audio books enabling blind and partially sighted people to carry on reading after losing their sight. We also continued to develop new and innovative solutions to improve peoples’ lives, such as our work with Goodmans to develop the Lesley-Anne Alexander, first talking set-top box which will enable people with sight problems to more easily reap the benefits of digital Chief Executive television. The ”Smart Talk” set-top box is now available and in February 2011 won a Which? “Best Buy” award. 11 April 2011 was a landmark day for blind people. It was the culmination of more than four years of some of our most successful campaigning, which led to people with a severe visual impairment becoming eligible for the higher rate mobility component of the disability living allowance (DLA). This meant that around 23,000 people would now be eligible for more than £30 a week extra to help them cope with the additional costs of living with sight loss. Chair and Chief Executive introduction (continued)

But unfortunately now is not the time to sit back and celebrate our success. The Welfare Reform Bill currently going through Parliament and the cuts to local authority services, will, if they remain unamended, have a devastating impact on the lives of many blind and partially sighted people. A reduction in out of work support will make it harder for people to find employment, and restrictions in access to sight saving treatments could mean people losing their sight unnecessarily. As we set out on 2011/12 we are absolutely determined to do all we can to influence a change of direction and minimise the impact these reforms could potentially have. The large reductions in local authority spending budgets will also have a negative impact on the services we are able to provide. This year we celebrated the 75th year of our Talking Book Service. This vital service enables people to carry on reading when they have lost their sight. Many of the 38,000 subscribers have their subscriptions to the service subsidised by their local authority. But this by no means covers the full cost to us of providing the service, and without this we will find it difficult to continue providing the service to blind and partially sighted people in the way we are currently able to. Frighteningly we are already seeing signs of local authorities withdrawing this support. We are tremendously proud of the fact that our fundraising income has held up well this year and because of downward trends in local authority spending, it is going to become more and more important in the years to come. At the end of the year we went live with an internet film campaign called “I’d miss” which told the story of Alexia and how she would miss out on the joys of reading if it were not for us. The film has been a fantastic success and has really brought home the potential realities of living with sight loss and the difference RNIB can make, to the 100,000+ people who have already seen it. We would like to end by saying thank you. None of our campaigning successes or the vital services we run would be possible without the fantastic contribution of our volunteers, donors and staff. Thank you for your vital support – it really does make a huge and lasting difference to the lives of blind and partially sighted people.

Kevin Carey, Chair Lesley-Anne Alexander, Chief Executive

5 6 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 SCO39316 in Scotland. Established in 1868, RNIB was incorporated under Royal Charter in 1949, with a Supplemental Charter in 1993 (revised in 2007). RNIB has undergone a period of constitutional review. It is governed by a Trustee Board of currently 20 that meets a minimum of four times a year and takes all important strategic, policy and financial decisions, and has overall responsibility for RNIB Group activities. There are no restrictions on the way in which the Charity can operate. Trustees are elected by the UK Members’ Forum or appointed by the Board, for a three year term of office, following which they can choose to retire or may seek re-election/re-appointment. However, no Trustee may serve for more than three consecutive terms of three years of office unless they become one of the Charity’s Honorary Officers (RNIB Group Chair, Vice-Chair or Honorary Treasurer). A proportion of our Trustees are appointed following a process of open competition. Advertisements are placed in appropriate publications and websites. Candidates are invited to apply on the basis of a Trustee job description, person specification and the specific skills identified by the Board. Applications are reviewed against the person specification and the specialist information being sought by the Board. Points are then awarded on the basis of how well the candidate met the criteria. Shortlisted applicants are invited to interview and again are scored against the selection criteria. At the conclusion of the process, successful candidates are recommended to the Board for appointment. The remainder of our Trustees are elected by the UK Members’ Forum. An induction pack is provided to all new Trustees and they are invited to attend an intensive induction day during which they are provided with information on the key services provided by RNIB and the main challenges and policy issues facing the Charity. Each Trustee receives an annual appraisal during which any individual training needs are identified. Where collective training needs are established, these are delivered to the Board on a collective basis. Recently delivered training includes voice coaching (including voice coaching for chairing meetings) and trustee duties and responsibilities (with particular emphasis on management of conflicts of interests). Arrangements are in hand to deliver a programme of support for Trustees to give them greater insight into RNIB’s finances and the interpretation of financial accounts. Structure and objectives (continued) How we were managed The Board delivers the strategy through a number of programme boards. It is also supported by a number of committees and member forums. The key committees supporting the Board are as follows: l Audit Committee l Investments Sub-Committee l Education, Care and Safeguarding Sub-Committee l Remuneration Committee l Executive Committee l RNIB Cymru Committee l Governance Committee (and Nominations l RNIB Northern Ireland Committee Committee) l RNIB Scotland Committee. RNIB’s schools and colleges have their own governing bodies. The day-to-day management of RNIB is delegated to the Strategic Management Team (SMT), comprising the Chief Executive, and the Group Directors of: l Prevention and International Affairs l Fundraising l Supporting Independent Living l Resources l Inclusive Society l and the Chief Executive of Action for Blind People. The Chief Executive of RNIB Group, 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”.

7 8 Structure and objectives (continued) RNIB Membership At March 2011 we had 10,373 members forming a strong community and voice for blind and partially sighted people. This was the first full year of the UK Members Forum which supports the Board and influences policy via the “on the ground” experiences of our blind and partially sighted members. Members also influence our work through regional and country forums. Every member is kept up-to-date with the latest news from RNIB via our award-winning members’ magazine “Vision”. The supplemental charter and bylaws require that a majority of the Board of Trustees, UK Members Forum and all other aspects of RNIB’s governance structure are blind or partially sighted.

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’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales, and Scotland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: l select suitable accounting policies and then apply them consistently l observe the methods and principles in the Charities SORP l make judgements and estimates that are reasonable and prudent l state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements l prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. Structure and objectives (continued)

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 1993, as amended by the Charities Act 2006, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed, and the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity 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’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Our vision and mission Our work starts from our vision: “A world where people who are blind or partially sighted enjoy the same rights, responsibilities, opportunities and quality of life as people who are sighted.” Our mission is: “To challenge blindness by empowering people who are blind or partially sighted, removing the barriers they face and helping to prevent blindness.” There are almost two million people in the UK living with a sight problem. Achieving our mission In order to achieve our mission, RNIB Group Strategy 2009-2014 aligns our work under three clear priorities: 1. Stopping people losing their sight unnecessarily In support of the UK Vision Strategy, a Vision2020 UK initiative of over 650 individuals and organisations led by RNIB, we work with partners to save the sight of thousands of people at high risk of losing their sight, whilst developing models, political will and NHS capacity to make an even bigger impact on unnecessary sight loss in the future.

9 10 Structure and objectives (continued)

The needs of people at the point of diagnosis are often unmet, slow to be met or inadequately met. These failings mean that people often do not have the support they need to rebuild their lives following sight loss. We take proactive steps to ensure that people are supported on a one-to-one basis, meeting their emotional, practical and information needs. 2. Supporting independent living Blind and partially sighted people require a range of support and services to help them get on with their life. Our work includes education and employment services, and providing person-centred support to assist people through changes in sight loss or personal circumstances, enabling them to develop the skills needed to tackle life’s challenges. Sight loss in people with complex needs often goes unrecognised. Recognition levels need to be improved as well as the environment and workforce skills in settings where people with complex needs are supported. 3. Creating an inclusive society It is essential that blind and partially sighted people can get around, shop, bank and control their money independently. RNIB aims to ensure that mainstream and specialist support services are available to people who require personal assistance to undertake these activities and influence a step-change in the accessibility of services delivered by transport operators, retailers and banks. By improving access to books, magazines, newspapers, TV, radio and information and communication technologies, the independence of blind and partially sighted people will be increased and they will be able to take full advantage of current accessible services and technologies. We also aim to influence laws, standards and industries to increase inclusive design and access. Specific programmes of work have been developed to help us deliver our ambitious goals. Each of these has a programme board which supports the Board of Trustees. These are: l Prevention of sight loss l Inclusive travel, shopping and control of money l Early reach l Inclusive reading, TV and technology l Living with sight loss l Funding our ambition l Complex needs l Enabling our ambition. Structure and objectives (continued) Statement of public benefit The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 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. Membership of RNIB is not a requirement to use our services. Where we provide specialist services for which we charge, the pricing model covers the costs for the delivery of the service and long term maintenance and development. Where there is a significant cost for a service, that cost is set to make it recoverable from other sources, such as local authorities for schooling and care. We also provide individuals with access to assistance in application for such 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.

Relationships with other charities We maintain close links and support the aims of other organisations such as local, national and international charities working with or for people with sight problems. We also work closely with other disability charities on issues of mutual concern. We deliver services in partnership with some societies for blind and partially sighted people, and some of our funding comes from charities and trusts which support our aims. Between April 2009 and February 2010 we formed associations with Action for Blind People (Action), Cardiff, Vales and Valleys (CVV) and National Talking Newspapers and Magazines (NTNM) enabling us to share skills and expertise to reach more people with sight problems in a more cost effective way. On 28 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), before which it had ceased operating.

11 12 Our work in 2010/11 Stopping people losing their sight unnecessarily The shocking fact that around 50 per cent of the people with a sight problem in the UK have an eye condition that could have been avoided, is why we work so hard to bring an end to people losing their sight unnecessarily. That is why this year we spent £3,405,000 reaching people most at risk of losing their sight with crucial eye health messages, and why we do all we can to ensure potentially sight-saving treatments are available to all. This year we gave one-to-one support and advice to 3,288 people about their eye condition through our eye health information service. We distributed over 190,000 copies of our series of leaflets on the most common causes of sight loss, and the pages on our website giving information and advice about specific eye conditions were viewed over 750,000 times during the course of the year. Our 10/11 goal We will improve the eye health of the nation by helping people to understand how to look after their eyes. We will ensure our sight-saving messages are heard loud and clear through supporting Eye Health Week, taking £3,405,000 our Future Vision mobile pod to 3,500 young people in ten different cities, working with our partners in the 3 per cent of commercial sector to promote good eye health and by researching the best ways to reach those most at risk. resources expended What we have achieved were spent stopping The importance of regular eye tests in detecting potentially sight threatening eye conditions and ultimately people losing their preventing avoidable sight loss cannot be underestimated. National Eye Health Week (14-20 June 2010) saw sight unnecessarily over 30 organisations from the optical and charity sectors across the UK bring this message home to millions of people. RNIB Cymru, in conjunction with BBC Wales, broadcast a hard-hitting television advert at prime time, which stressed the importance of regular eye tests. We have continued to increase our knowledge and understanding of the barriers faced by people from low income and minority ethnic backgrounds in accessing eye health services. We have reviewed how other organisations have tried to reach these high risk groups, and the findings from this will be promoted at the UK Vision Strategy conference in June 2011. In five areas of the UK we worked with local community groups and healthcare providers to assess who was, and was not, getting the eye care services they required. We have now taken these findings to commission further research which will later this year provide us with an excellent insight into the main barriers and enablers to eye care services – and help us effectively target our sight saving messages Our work in 2010/11 (continued) in the future. Our parliamentary reception at the Palace of Westminster gave MPs the opportunity to have their eyes tested and gave us the opportunity to promote the importance of eye health and the need for it to be included within the agreements made between local authorities and healthcare providers. RNIB’s Future Vision mobile pod demonstrates how general health as well as eye health can be affected by the lifestyle choices that are made when you are young, with a particular focus on the fact that smoking causes blindness. This year we took the pod to 11 sites across the UK and got the message out to over 4,000 young people. It has been so successful that we are extending the Future Vision tour to cover a further 10 sites over the next 12 months. Our 10/11 goal In an election year, we will make eye health a political priority and increase pressure on government to give eye health greater priority across health and social care sectors. We’ll do this by supporting the UK Vision Strategy across the UK and publishing valuable guidance for Primary Care Trusts to help them build eye care services into their plans. What we have achieved Our commitment to support and lead the UK Vision Strategy in delivering its aims to end avoidable sight loss by 2020 remains strong. This year saw the second annual UK Vision Strategy conference (Vision UK 2010) bringing together people from across the sector along with key decision makers from Government and the National Health Service. The conference also saw the launch of the UK Vision Strategy patients charter – setting out the level of service people should expect from their healthcare provider. But the new government elected in May 2010 has led to a change of tack in this area and we now need to respond to the newly emerging NHS, re-engage with ministers on UK health and ensure eye health is given the priority it deserves. We continued to use the strength of the sector speaking with one voice as, under the umbrella of the UK Vision Strategy, a joint response to health service reforms was issued in October 2010 and initial signs are that we are getting strong engagement from government. After the election we held a reception to meet new MPs as well as those that had been re-elected. We introduced them to the challenges of living with sight loss by asking them to complete everyday tasks such as making a cup of tea or using a cash machine while blindfolded. We followed up on the reception by sending all MPs a pack explaining how they can meet the needs of their blind and partially sighted constituents around access to information, access to their constituency office and making their websites accessible. 13 14 Our work in 2010/11 (continued) Our 10/11 goal We will help people to get the eye care treatments they need by challenging instances of poor treatment of eye disease, improving the level of screening for children’s eye health and influencing the availability of new treatments for eye conditions. We will also be working to identify the best ways to help those people most at risk to access treatment. What we have achieved Ken’s The right treatment at the right time can be vital to saving someone’s sight. It is hard to imagine how frustrating it would feel to know something could be done to save your sight but the right option was not available to you. Through a specialist advocacy service we are supporting a number of people across the UK to story challenge their health service and achieve the treatment that is best for them. We have challenged a number of Primary Care Trusts (PCTs) in England who have introduced a choice between a licensed treatment (Lucentis) and its unlicensed and cheaper alternative (Avastin) for patients with age-related macular degeneration. Due to misleading patient information this has led to most patients in these areas (Bury and Stockport) choosing the unlicensed treatment. We have challenged these policies involving the Strategic Health Authority, the Department of Health and the Care Quality Commission. Unfortunately, the PCTs have so far persisted with a service that clearly contravenes the National Institute for Health and Clinical Excellence (NICE) guidance, as well as guidance from the Secretary of State, and is focussed on financial drivers rather than patient safety. We have made effective progress across the eye health sector highlighting the issues of children’s eye health in government public eye health consultations. Toward the end of the year we submitted, together with the Royal College of Ophthalmologists, a response to the Public Health White Paper calling on the Government to make Ken had enjoyed reading children’s screening at school mandatory. All this coupled with professional engagement across a number of throughout his life and children’s groups in the sector has secured our place in future discussions to improve the current provision of thanks to the RNIB Talking children’s visual screening. Book Service was able to continue after losing his Further highlights sight. He now reaps all Following months of campaigning by RNIB Scotland and partners Eyecare Scotland and Optometry Scotland, the benefits of the latest the Scottish Government announced a £6.6million investment in a revolutionary digital imaging system DAISY technology and has which will save the sight of thousands of people in Scotland as it creates a direct link between the high street up to three books on the optometrist and the hospital eye clinic, where sight saving treatments can now be instigated far more quickly go at any one time. than previously possible. Our work in 2010/11 (continued) The “Electronic Referral with Digital Images” system sends a digital image of the eye directly from the “Getting access optometrist to the ophthalmologist, cutting out patient referral and waiting time. The case for the funding was to talking books made through RNIB Scotland’s “Cost of blindness” report which was published during Eye Health Week and helps people have warned that the number of people with a sight problem in Scotland could double to around 400,000 by 2030 meaningful lives if something wasn’t done. The adoption of the system was one of the key asks of the report and we are very proud that RNIB Scotland have also been invited to join the steering group overseeing its implementation. despite their sight loss. Reading is that This year we developed and launched the “Eyes right” screening tool, which enables communities to take important.” the first step in managing their own eye health and identify at the earliest possible stage potentially sight- threatening eye conditions which may previously have gone undetected until it was too late. This, and the Ken Reid accompanying training package which helps people use the tool effectively, have received very positive feedback since their launch in September. Our goals for 11/12 1. Launch community engagement projects in five areas of the UK to identify evidence to improve access to primary and secondary eye care for people on low income and people from Pakistani and Caribbean populations. 2. Campaign against cuts to eye health treatment to preserve sight by continuing to challenge NHS providers who do not adhere to National Institute for Health and Clinical Excellence (NICE) guidance. 3. Deliver key messages through National Eye Health Week, raising awareness of the importance of eye health and changing the behaviour of the people most at risk of losing their sight as well as the general public.

15 16 Our work in 2010/11 (continued) Supporting independent living Many people feel more afraid of losing their sight than any other sense. This is because of the perceived, and often very real, impact sight loss can have on your independence. But it is vital people maintain their independence, and are able to lead a full and enjoyable life. This is why we have spent £88,271,000 this year on the services, support and solutions that enable people to remain independent. During the year Action for Blind People’s local teams aided the independence of nearly 30,000 people by providing support and advice. Our Helpline dealt with nearly half a million enquiries and our website with over two million visitors. We sent out over 1.7 million books to users of our library services and over 400,000 specially adapted products were sold to blind and partially sighted people. Our 10/11 goal We aim to support and care for over 11,000 people at the very difficult time of losing their sight through our £88,271,000 programme of Eye Clinic Liaison Officers (ECLO) working in eye hospitals around the country. In addition, we will help 24,000 people find their life again after sight loss through in-depth sessions delivered by our Helpline. 74 per cent of resources expended What we have achieved were spent supporting Being diagnosed with a sight problem that could radically change your perception of the rest of your life, can independent living understandably have a huge impact. That is why in recent years we have put so much effort into the development for people with sight and implementation of the Eye Clinic Liaison Officer (ECLO) role in hospital eye clinics. The ECLO has the time to problems dedicate to individual patients directly after consultation. ECLO and Vision Support Services (as they are called in Scotland) were there for almost 14,000 people this year providing the vital initial contact which will enable them to more easily access the support and services they need in the future to maintain their independence. Our Helpline’s advice and legal rights teams helped over 26,000 people with in-depth support and advocacy work. Across the UK, RNIB and Action benefits advice workers helped to identify previously unclaimed entitlements for 8,451 people, amounting to an amazing £10.8million. Our work in 2010/11 (continued) Our 10/11 goal Linda’s Our new Rushton School and Children’s Home will offer a fantastic school and care home for blind and partially sighted children who have other very complex needs when it opens in 2011. We will also increase the quality story and availability of specialist teaching and support for blind and partially sighted learners across the UK through training, resources and campaigning for change. After losing her sight in a car accident, Action What we have achieved helped and supported RNIB Pears Centre for Specialist Learning (the new name for Rushton School and Children’s Home) is due to Linda in regaining her open in the summer of 2011. Children moved into the new residential accommodation in April 2011 and the independence, using new school will be fully fitted out and in use by the start of the new academic year in September. This year appropriate technology the school became the only non-maintained school in England to be awarded specialist status for special and worked with her educational needs cognition and learning – a fabulous achievement. to start up her own We continue to strive to improve the learning experience of pupils with sight problems through a wide range of consultancy business. activities designed to support and develop education providers and professionals. This year this has included delivering vital training (such as our Partners in Learning courses for teaching assistants) and resources (such “Action helped me as the “Best of Both” guides detailing best practice for professionals working with children with a visual realise that you can impairment and complex needs) to teachers helping them to understand the needs of their blind and partially achieve anything with sighted pupils. the right support, Our 10/11 goal and got me back in In a period of economic uncertainty we will campaign with the National Association of Local Societies of employment and Visually Impaired People (NALSVI) and Guide Dogs for the Blind Association to protect benefits for blind and earning a living.” partially sighted people so that the same quality services are available to all wherever you live in the UK. Linda Bancroft What we have achieved The year began with the success of our Attendance Allowance campaign. The previous government had planned to abolish this benefit for new claimants aged 65 or over with a disability, but through our responses to the Green Paper and continued lobbying we persuaded them the choice and control this benefit gives people is vital to their ongoing independence. Later in the year we published a joint response to the Government’s Welfare Reform Bill with other sight loss charities. The report, titled “More than meets the eye”, contains in-depth analysis of the proposed reforms and 17 18 Our work in 2010/11 (continued) highlights the potential impact, including the facts that many blind and partially sighted people would lose their DLA entitlement from 2013 and that the double whammy of cuts to benefits and cuts to public services will move more people further away from work as well as dramatically reducing their disposable income. Our vigorous campaign against these changes will continue throughout 2011, as will the help and support we give to blind and partially sighted people. We are already seeing an increase in the number of people coming to us worried about their future and the implications of the cuts to them. Our 10/11 goal Adrian’s Losing your sight shouldn’t also mean losing your job! That’s why we will help 1,250 people to stay in work or to find a new job during the testing times of the recession. story What we have achieved Our target has been achieved with 1,901 people retaining or finding new work. However the target has been achieved largely through job retention. We worked with employers to enable 1,592 people losing their sight to continue in their employment. We helped 309 people with sight loss to find work but in the worsening economic climate it has been very difficult and we are still waiting for signs of improvement. Our 10/11 goal Undetected sight problems among people with learning difficulties limit potential and quality of life. We want to put this right and so will be supporting Mencap’s National Learning Disability Week, where we will launch a new DVD to help professionals to spot the signs of sight loss. What we have achieved Adrian is 18 years old. Many people with a learning disability have never had their sight tested and are often struggling to cope with He is partially sighted complex eye conditions. Proper assessment of their vision and ongoing support can dramatically improve with substantial physical their quality of life. This year in order to combat this problem we launched our DVD “Bridge to vision”. needs, is strongly affected Winner of The Herald Society Partnership Award it has been a tremendous success and has been adopted by by epilepsy and is a three leading colleges and uploaded onto one optometrist’s website as a training tool for staff and students. wheelchair user. At RNIB Developed in collaboration with Glasgow Caledonian University and Optometry Scotland, over 1,300 copies Pears Centre we are able of the DVD have been circulated but the reach will be far greater than that. We are confident that in the to manage Adrian’s very future this will lead to greater levels of detection of sight problems in people with learning disabilities and complex needs to allow consequently an improvement in their life chances. him to learn and achieve. Our work in 2010/11 (continued) “The care and Further highlights education Adrian Our information and membership services, including the RNIB Helpline, dealt with an amazing 465,314 has received at RNIB individual enquires this year and our website welcomed over two and a quarter million visitors, providing Pears Centre has people with the information, support and advice they need, at the time that they need it. changed his life – and Action for Blind People’s 17 regional teams across England supported nearly 30,000 people this year to lead ours – for the better.” more independent lives. The Action teams assess the individual needs of people with sight problems and create Adrian’s mum personal action plans that may include housing, financial or benefits advice; practical IT support from Action’s technology experts; employment support and much more. This vital work in the community was supplemented by Action’s mobile information service which travelled the length of England, visiting 157 venues, providing face-to-face advice, information and support to 7,080 people during the year. Action also supports blind and partially sighted children and their families at a local level. Children with sight problems often miss out on sporting opportunities at school because games are not adapted so that they can participate. This is the reason for Action’s 29 clubs for blind and partially sighted children and young people known as Actionnaires. The clubs are situated throughout England and Wales and provided sporting and other opportunities to almost 3,500 children this year that they would otherwise not experience. RNIB College Loughborough helps people with sight loss and other disabilities to learn the skills to access education, work and housing. This year the college achieved four of the top grades from their annual Ofsted inspection and is well on its way to achieving its target of being graded “Outstanding” by 2012. This year we sold over 400,000 products which have been specially designed by us to make life easier for people with sight problems. This includes new products such as the labelling device “PenFriend” – which can be used to identify all sorts of items around the home – to products that have been helping blind and partially sighted people for years such as the liquid level indicator – which can help make a cup of tea. These quite often simple products can make a huge difference to people living with sight loss, which is why this year we invested in improving the online shopping experience of our customers by the redevelopment and launch of our online shop. Why not try it yourself at rnib.org.uk/shop The quality of RNIB Insight Radio was recognised at the annual Freesat awards as well as on the international stage at the New York Radio Festival Awards. It was also recognised by more than 95,000 blind and partially sighted people who tune in every week – not to mention their sighted friends and family. We created supportive networks for people with sight problems through our Talk and Support telephone groups, running 19 20 Our work in 2010/11 (continued)

6,000 sessions giving over 1,600 people the ability to share their anxieties and concerns and learn directly from the experiences of others. We also gave one-to-one emotional support sessions to over 3,700 people at the crucial point where they are struggling to come to terms with losing their sight. RNIB Cymru and Cardiff, Vales and Valleys continue to provide essential face-to-face support to blind and partially sighted people not just in Cardiff, but thanks to the power of joint working, for the first time in the south west valleys and as far west as Swansea. An example of this is the volunteers who support blind and partially sighted people in their homes in the use of a computer, a service that is replicated throughout the UK where we have over 700 volunteers introducing people to the technology and products that can potentially make a real difference to their lives. November saw the 75th anniversary of our Talking Book Service which has provided a vital reading service to blind and partially sighted people during these years. Last year we sent out over 1.7 million books to the services 38,000 subscribers. As well as talking books, over six and a half thousand library members benefit from braille, giant print and Moon publications. It is now more than a year since National Talking Newspapers and Magazines (NTNM) became part of RNIB Group and the service continues to deliver audio and text versions of national and local newspapers and magazines to around 13,000 people either via the internet or direct to the door of blind and partially sighted people. Our goals for 11/12 1. Support 1,250 blind and partially sighted people, by working with their employers or potential employers, to retain work when losing their sight, or to find new employment. 2. Increase the level of support available to blind and partially sighted people in their homes to access and make the most of technology such as computers and talking book players by developing our volunteer base. 3. Make the most of the fantastic facilities available to children with sight loss and complex needs at RNIB Pears Centre for Specialist Learning. 4. Lobby on the Welfare Reform Bill as it moves between the House of Commons and the House of Lords to ensure blind and partially sighted people receive a fairer settlement than currently anticipated. 5. Provide people with sight problems with the information, support and advice they need to cope with the current economic climate and the potential impact on their lives of cuts to services or benefits. Our work in 2010/11 (continued) Creating an inclusive society We want to make the UK a better place to live if you are blind or partially sighted. In 2010/11 we spent £10,136,000 working to improve the travel, shopping and banking experiences of people with sight problems, as well as developing better ways to read, watch television and get the most from technology. We continued to put pressure on local service providers by utilising the vital support we receive from the almost 4,000 people who make up our Campaign supporters network. This year they made 72 challenges to services that are inaccessible to blind and partially sighted people from the retail, banking and travel sectors. And we were delighted in a tough economic climate to maintain the level of RNIB membership. At the end of the year 10,373 people were reaping the benefits of membership and receiving special offers, invites to regional member meetings and our bi-monthly members’ magazine Vision, as well as helping us continue to shape the future direction of our work for people with sight problems. £10,136,000

Our 10/11 goal 8 per cent of Getting around, shopping and managing your own money safely and independently doesn’t sound too much to resources expended ask, but these everyday tasks are often not possible for people with sight problems. We will campaign for change, were spent creating a use our influence in the travel, retail and financial industries to create eight beacons of best practice and ensure more inclusive society that blind and partially sighted people better understand their rights. for people with sight What we have achieved problems We have made some real progress this year influencing transport organisations such as First Capital Connect and Scotrail to introduce improved services for blind and partially sighted people. And in February 2011 the new buses and coaches directive from the EU gives blind and partially sighted people the right to expect accessible travel information, both before and during their journey, and that staff have received basic disability training and are therefore more understanding and able to help them. This is a great success for us and demonstrates the potential of our network of volunteer campaigners who wrote hundreds of letters to their MPs in support of the campaign. The “React” wayfinding system enables people to navigate around a given area through a system of signals sent to them as they move around. It was launched in Brighton and Hove in 2007 where it has been a great success. This year we have helped with the installation of the system into many new areas including Manchester city centre and on the Newcastle Metro.

21 22 Our work in 2010/11 (continued)

On a local level we have supported many people to challenge local travel providers to make their service more accessible to people with sight problems. An example of this is Madeleine Close in Hampshire, an RNIB volunteer, who challenged local council plans to review the disabled person bus pass and actually ended up securing an extension to the amount of time the pass can be used rather than a reduction. We celebrated success in Scotland too where we held our “Go! Shop! awards” acknowledging the improvements made to the services available to people with sight problems by organisations such as Waitrose, Tesco Online and the Royal Bank of Scotland. As well as helping them improve their services we made a big splash with the Stanley’s awards to ensure the message got out there to as many service providers as possible – encouraging them to do the same. story Our 10/11 goal Ebooks, digital magazines and newspapers and websites should be opening up a whole new world of reading, but only if they are developed with disabled people in mind. We will work with manufacturers, industry and service providers to ensure that blind and partially sighted people do not miss out on the digital revolution. What we have achieved There is no doubt that the advent of ebooks holds an enormous amount of potential for blind and partially sighted people. But that is only if they are produced and delivered in a way that is accessible. This year we have worked hard to influence manufacturers to increase the availability of built in text-to-speech features in ebook players and for rights holders to enable text-to-speech on their ebooks. It is certainly good news this year that the second generation Kindle can be more easily used by blind and partially sighted people. Stanley was in a bad way The potential of mobile technology should also not be underestimated. We have strengthened our engagement when one of Action’s with the mobile phone industry, working with global device makers and national mobile networks, and independent living achieving some real gains. Our Techshare Mobile 2010 conference, brought together around 150 key players coordinators visited him at to focus on the accessibility of mobile devices. Following our advocacy with Blackberry maker, Research home. We helped Stanley in Motion, a new free of charge low vision theme was released. We are also in the process of finalising a identify and claim the partnership with Nokia around the accessibility of mobile devices and are engaging with several mobile network benefits he was entitled providers with the aim of bringing more accessible mobile devices to market. With software company Adobe we to, to help him cope with are testing a new accessible book reading platform and Microsoft has requested we carry out customer testing the additional expenses of of their new internet browser, ensuring its accessibility to people with sight problems. living with sight loss. Our work in 2010/11 (continued) As well as ensuring inclusive products are developed we have continued to introduce blind and partially sighted “I am extremely people to the potential of technology and support them in realising this potential. Our “Taste the Apple” days grateful to Action for introduced some of our members to products they had not previously experienced such as Apple’s iPhone and all their support – iPad – whose built-in accessibility features are leading the way – and explained how they could be used and without them I would the benefits they could derive from them. not have received Our 10/11 goal the benefits I am Our campaign to make the Disability Living Allowance fairer was hugely successful and will soon mean up to entitled to.” £45million a year for blind people. But there is more to do – so in 2010/2011 we will make sure blind people Stanley Yates know about their new rights and are ready to take up this additional benefit as soon as it’s available. What we have achieved We started the year celebrating this success and working with voluntary sector partners and the Department for Work and Pensions to get the message out there to people that they may be entitled to the additional mobility component of Disability Living Allowance. But unfortunately as the year drew to a close, and just as this new entitlement was going to be realised on 11 April 2011, blind and partially sighted people were put under threat again, from the Welfare Reform Bill. The proposals in the Bill could mean that up to a fifth of the people currently receiving DLA will not be eligible for any benefit after their Personal Independence Payment assessment, and 80,000 individuals in state-funded residential care will no longer receive the mobility component of DLA from October 2012. Further highlights This year we achieved what they said could never be done. Working with Goodmans we produced the first fully accessible talking set-top box. The “Smart Talk” set-top box enables blind and partially sighted people to utilise the full benefits of digital television in their homes. And in February this year Smart Talk was awarded a “Best Buy” award by Which? magazine. As the Equality Act made the rights of blind and partially sighted people more explicit we made it easier for organisations to produce material in large print, braille and audio by launching “webdocs”, an online service that can get information delivered within 48 hours. As a direct result of our Losing Patients campaign – where we worked with people with sight problems to get their health providers to recognise they could not read print and provide them with information they could read – Yorkshire NHS changed their data capturing systems to include details of a persons preferred reading format. 23 24 Our work in 2010/11 (continued)

Years of partnership working with the European Blind Union finally bore fruit in December 2010 when braille became compulsory on pharmaceutical packaging. This, plus the introduction of our “x-pil” service where people can request copies of their medicine information leaflets in the reading format of their choice via a simple telephone call, gives people with sight problems far more control over their own medication and health. Also on the international stage we worked hard all year to gain support for a “books without borders” treaty at UN body “WIPO” (World Intellectual Property Organisation). If agreed, the treaty would remove the copyright law barriers that stop the UK’s blind and partially sighted people from receiving thousands of accessible books from the USA and other English-speaking countries. A little closer to home our “Lisburn in Focus” project was launched. Funded by the Big Lottery Fund the project aims to make Lisburn in Northern Ireland a centre of excellence for services which are accessible to blind and partially sighted people. We are working with service providers and businesses to ensure everything they do is accessible to people with sight problems and is a demonstration of best practice to service providers throughout the UK. So far we have delivered training to 3,000 people helping them to understand what it is like to live with a sight problem, increased the amount of information in the area produced in alternative formats to print, and worked with a number of organisations to improve the accessibility of their premises and websites to blind and partially sighted people. Our goals for 11/12 1. Through our network of campaign supporters we will make 40 challenges to retail, leisure and financial environments that are inaccessible to blind and partially sighted people. 2. Through advocacy and industry engagement we will ensure that 10 of the most popular UK online services are accessible to blind and partially sighted people. 3. Work with manufacturers and industry to ensure that blind and partially sighted people have a wider choice of mobile telephones and television Freeview boxes which meet their needs. Our work in 2010/11 (continued) Financial review

In 2008/9 we announced the new RNIB Group strategy for the five years to March 2014. This is based around the three aims of prevention of sight loss, independent living and creating an inclusive society. The Group Statement of Financial Activities (SOFA) reflects this strategy.

Where our money came from

40% Charitable activities

3% Other

57% Donations, gifts and legacies

Of our overall incoming resources 57 per cent came from fundraising activity (of which 31 per cent or £35.8million was from legacies), 40 per cent from service related income and 3 per cent from other sources. Despite the current economic climate, we are pleased that our fundraising income has held up relatively well ending up ahead of budget although behind last year. Like many other voluntary organisations, we have felt the impact of government cuts on our service income and recognise the need to be consistently more effective whilst ensuring we are delivering to meet the needs of blind and partially sighted people. 25 26 Our work in 2010/11 (continued)

Group incoming resources have fallen by £18.8million, but this is explained by the inclusion in 2010 of £17.7million by way of acquired net assets on association and £1.5million from a VAT claim.

Where we have spent our money

3% Stopping people losing their sight unnecessarily

14% Generating further funds 74% Supporting independent living 1% Our governance

8% Creating an inclusive society

Our outgoing resources were split between supporting our three strategic aims of prevention of sight loss (3 per cent), independent living (74 per cent) and creating an inclusive society (8 per cent), together with the costs of raising funds (14 per cent) and the governance costs for the organisation (1 per cent). What we did with these resources is explained in “Our Work in 2010/11” earlier in the report. Group outgoing resources have fallen by £10.4million primarily due to reduced costs in our activities in supporting independent living. RNIB’s associated charities are Action, CVV and NTNM. These charities contributed income of £14.4million and charitable activities of £11.5million to the Group in 2010/11. On consolidation Action has brought a further £0.472million by way of net assets at fair value to the Group as a result of the mergers with Staffordshire Blind and the Blind Society for North Tyneside Limited. Our work in 2010/11 (continued)

Other significant activity during the year was: l The continued construction of our new RNIB Pears Centre for Specialist Learning in Coventry. Construction work cost £11.4million during the year. Despite some delays, mainly due to poor weather, the children moved into the living accommodation in April 2011. The school will be in use from September 2011. The construction costs are covered by fundraised income and a bank loan from Allied Irish Bank (AIB). l Significant uses of designated funds have included £240,000 starting eye clinic services in Northern Ireland, £130,000 on “Work Focus” employment project, and £410,000 making digital TV more accessible to blind and partially sighted people. l We have also spent £590,000 on starting the implementation phase of a new Customer Relationship Management system for the Charity to deliver improved customer interaction. This system will deepen our understanding of our customers needs and should be in place in March 2013. l We have also been able to fund Eye Clinic Liaison Officers around the UK. We will be working to influence the funding of these posts from government in the future. Free reserves at the end of the year stood at £20.4million which is equivalent to 12.7 weeks as compared to £19.1million or 10.5 weeks at 31 March 2010. We had planned for our reserves to fall during 2009/10 to support our projects and services during the difficult economic period but are pleased with our success in bringing these back in line with our normal reserves policy of between twelve and seventeen weeks of operating costs. The last formal triennial valuation of the pension scheme was at 31 March 2009. The valuation disclosed that the market value of the Scheme’s assets (excluding voluntary contributions) at that date was £93.3million, and that there was a deficit of £28.6million. RNIB has agreed a recovery plan with the RNIB Pension Fund Trustees to pay additional contributions of £1million per annum for 17 years. This will be part funded by a reduction in employer contributions as a result of reducing the inflation cap for pensions in payment and deferred pensions from 5 per cent to 3 per cent for benefits accruing after 30 June 2010. These actions, together with the recovery in the world stock markets has led to an FRS17 pension scheme surplus of £1.7million compared with the deficit last year of £9.2million. The two subsidiary trading companies of the group contributed £288,000 to the RNIB Group through gift aid. We are very grateful for the continued support of donors through legacies, gifts and donations, as well as the work of our many volunteers, which allows the vital work of RNIB to continue. The challenge of raising over £67.3million (2011: £66.5million) for 2011/12 is a tall mountain to climb but we are convinced that we will achieve it so we can ensure our customers receive the support they need and deserve. 27 28 Our work in 2010/11 (continued) Fundraising review Total voluntary income for 2010/11 amounts to £66.9million, a decrease of £1.4million against 2009/10 but ahead of our budget for the year. We are pleased to have achieved this against the background of the current economic difficulties that we all face. 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 2010/11 has amounted to £8.4million. The net proceeds of this fundraising activity have been restricted within these accounts for the benefit of Action. Fundraising costs for 2010/11 amount to £15.9million which compares with a figure for 2009/2010 of £16.7million. The fundraising costs are net of a recharge in the sum of £4.9million for costs incurred in raising public awareness about matters relating to sight loss. These costs have been included within the costs of “Charitable activities”. We have continued to invest in our supporter relationship management programme, which we regard as an essential investment to secure long-term income. It will also help us to be more efficient in communicating essential messages and collecting donations. Our investment in fundraising is vital to sustaining our income and our ability to plan and fund direct services, but we remain focused on driving efficiencies and reducing our costs. RNIB is a member of the Fundraising Standard 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.

Volunteering Volunteers are crucial to our ability to deliver our strategy and without this fantastic support it would not be possible for us to achieve all we do right across the RNIB group of charities. This year 157 services were able to achieve more for blind and partially sighted people because of the support of volunteers. This includes visiting people in their homes to help them with technology such as computers or televisions, collecting donations from money boxes across the UK, helping to organise fundraising events, facilitating telephone book clubs for blind and partially sighted people, helping to produce braille and audio material, presenting shows on RNIB Insight radio and helping blind and partially sighted people to get around safely. Across the group of charities we have benefited from the support of over 4,400 volunteers during the year, contributing over 37,000 hours of their time to us every month. Our work in 2010/11 (continued) Employing disabled people RNIB recognises the exclusion and disadvantages that disabled people experience as a result of social, economic, and material barriers, created by the world in which they live. RNIB also recognises that disabled people may be enabled by learning additional skills. RNIB is working to ensure that disabled people receive the maximum possible benefit that can accrue to them through the Equality Act (Disability Discrimination Act in Northern Ireland). As an employer, RNIB takes steps to ensure that it meets its obligations under the law and, where possible, exceeds it. This includes making reasonable adjustments to meet the needs of disabled job applicants and employees. RNIB extends this principle to committee members, trustees and volunteers in line with best practice. Currently 10.7 per cent of our employees are disabled. Through our Access Support Technology Unit we are able to provide specialist advice and support to ensure that disabled staff have the appropriate equipment and training to perform effectively. Disabled staff are assisted by providing additional reasonable adjustments where these are required. Our Disabled Staff Forum also meets and provides feedback on specific issues which affect disabled staff.

Engagement with staff RNIB has a number of mechanisms for engaging staff and seeking their views, both formal and informal. Our Staff Communication and Consultation Forums meet at site, regional and national level to discuss areas that are specifically of interest to staff but also to receive information about the financial health of the organisation and how we are achieving our strategic goals. Staff are also increasingly using the internal intranet based discussion boards to share ideas and raise issues. During 2011 we also conducted an organisation- wide staff survey and we are currently working on the delivery of an action plan to address areas arising from this.

29 30 Our work in 2010/11 (continued) Investment policy Statement of investment principles Investment decisions are taken on the advice of the Investment Committee whose members have a finance, investment or commercial background. The Charity’s investment policy is to hold assets to achieve an appropriate return with an appropriate level of risk when considered alongside the Charity’s business plan and level of reserves. It has three investment objectives: l to invest prudently – the basic investment strategy of the Charity has been to invest in a way that the minimum level of reserves is very likely to remain covered, but with some investment risk being taken on the assets over and above this minimum level l to invest in liquid assets – the Charity could call upon its quoted investments at any point. It should be straightforward to sell the Charity’s assets down to cash, and doing so should result in the cash being available quickly and without the potential for significant adverse impact on the value of investments l to invest ethically – the Charity wishes to avoid unethical investments, and in particular tobacco stocks due to the link between smoking and certain conditions that result in sight loss. Investments are currently allocated 20 per cent in equities, 40 per cent in bonds and 40 per cent in cash. This strategy was developed with the advice of Hewitt Associates and takes into account the nature of the Charity’s business as reflected in its business plans. It is the Charity’s intention to hold sufficient short term cash holdings to meet fluctuating needs and to make appropriate use of an overdraft facility as required with the Royal Bank of Scotland. The Charity’s reserves policy is to normally maintain reserves equivalent to between 12 and 17 weeks of its operating costs. Planned project expenditure from designated funds and the current economic uncertainty have led the Charity to hold its investments in a low risk and liquid portfolio. It is the Charity’s aim to perform an annual desk top review of Investment Managers and to meet them as appropriate. The Charity has mandates with Legal & General and Foreign & Colonial (F&C) and fee structures are: l Legal & General Ethical Trust – 0.235 per cent per annum l Legal & General Cash Trust – 0.23 per cent per annum l Foreign & Colonial Ethical Bond Fund Share Class 2 – 0.55 per cent per annum. Our work in 2010/11 (continued)

In the year Endowment Funds were moved from the Charities Aid Foundation (CAF) to F&C. F&C fee structures are: l Foreign & Colonial Ethical Bond Fund Share Class 2 – 0.55 per cent per annum. l Foreign & Colonial Stewardship Income Fund (Dist) Share Class 2 – 0.88 per cent per annum. The group investments include a further £45,000 relating to the Cardiff Vales and Valleys, £2,960,000 for Action and £31,000 for the Glynn Vivian Home of Rest for the Blind. 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 Rensburg Sheppards Investment Management Limited.

Investment performance The funds in which the investments are held are measured against agreed benchmark indices for each relevant holding. The performance for the investments held by RNIB as at 31 March 2011 against each fund’s benchmark index are detailed in the table below.

Value at Actual Target +/- Performance in year to 31 March 2011 31 March Holding Holding (or since inception if earlier) 2011 Fund Benchmark £’000 % % % % % +/- Cash 9,910 39.6 40 -0.4 +0.1 n/a n/a Corporate bonds 10,199 40.7 40 +0.7 +5.4 +5.2 +0.2 UK equities 4,932 19.7 20 -0.3 +13.6 +5.2 +8.4 Total 25,041 100 100 -

Cash deposits are placed on behalf of the RNIB Group including the Associated Charities by their respective banking organisations. At 31 March 2011 the Group’s cash and short-term deposits stood at £7.1 million. During the year the group interest received on cash and short-term deposits was £12,000 of which £7,000 related to the RNIB Charity. 31 32 Our work in 2010/11 (continued)

The RNIB Charity’s short-term deposits were all overnight places and the average return made was 0.2%. During the year the RNIB Charity moved its Endowment Funds from CAF investments to F&C investments. At 31 March 2011 the unrealised gain on the Endowment Funds was £294,000, and the breakdown of the unrealised gain by fund can be found in note 20. The Sunshine, Elizabeth Eagle-Bott and Dr Duncan Leeds Funds are all held in both the F&C Stewardship Fund and the F&C Ethical Bond Fund. The Emma Nye Fund is held in the F&C Stewardship Fund only. The Bristol Blind and GDC Rushton Funds are held in the F&C Ethical Bond Fund only.

Reserves policy RNIB’s reserves policy focuses on the level of “free reserves”. Free reserves exclude restricted funds and designated funds, which include the net book value of land and buildings occupied by RNIB services and activities. The assessment of free reserves excludes any surplus or deficit reported on the pension scheme. RNIB seeks to maintain free reserves to manage the risks to which the Charity is exposed in the course of its business, including but not limited to safeguarding against volatile voluntary income. The Trustees review the reserves policy each year and consider that in order to meet these needs, and to operate effectively, RNIB needs reserves equivalent to between 12 and 17 weeks of its operating costs. This equates to between £19.3million and £27.3million. RNIB’s free reserves were £20.4million at 31 March 2011 (2010: £19.1million), which equates to 12.7 weeks (2010: 10.5 weeks). The Trustees have agreed a business plan in support of the strategy which aims to increase reserves within the reserves policy range during the strategy period. The actuarial valuation of RNIB’s pension scheme at 31 March 2011 for the purposes of FRS17 showed a surplus of £1.7million (2010 a deficit of £9.2million), which is set against the level of free reserves as required by FRS17. The corresponding liability does not result in an immediate cash flow impact on the Charity. A full triennial valuation of the pension fund took place as at 31 March 2009 and the updated valuation has been produced and considered by the Pension Scheme Trustees. Contributions to the scheme are met through planned income. The level of free reserves has been calculated excluding the FRS17 asset. Our work in 2010/11 (continued)

At 31 March 2011 RNIB held designated funds totalling £51.3million (2010: £55.8million). Of this £42.4million (2010: £43.8million) relates to properties and £1.6million (2010: £1.4million) relates to other assets (mainly talking book players) both used directly in undertaking RNIB’s objectives. The remaining funds amounting to £7.6million (2010: £10.6million) for this year 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. 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 2011 amounted to £220,000, all of which are to be covered by forthcoming receipts.

Risk management The Board of Trustees is responsible for overseeing the Charity’s risk management activities. Detailed consideration of risk is delegated to the Audit Committee, which is assisted by senior charity management in continually reviewing this matter and reporting thereon to the main Board. Major risk factors currently identified include: reductions in public spending meaning less funds available for blind and partially sighted people; and changes to public sector contracts - less income, different delivery models, or new contracting arrangements. Mitigating strategies and/or contingency plans, controls and actions are in place for these and other risks identified. Through the risk management process established for the Charity, the Trustees are satisfied that the major risks have been identified and processes for addressing them have been implemented. It is recognised that any control systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Going concern Having reviewed the strategic risks facing the charity, the business plan for the period to 2013/14 and the cash and investments forecast over the same period the Board of Trustees considers that there are sufficient reserves held at 31 March 2011 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 accounts. 33 34 Our work in 2010/11 (continued) Reducing our impact on the environment

We are committed to reducing our environmental impact, and in particular reducing our carbon footprint. For the fourth consecutive year we have measured our environmental impact considering waste, water and energy usage. Our objective is to maximise the environmental efficiency of our buildings and work practices, reducing pollution and avoiding unnecessary costs. Last year was our first year as the RNIB group of charities and we said that in future years we would report on our group performance. We are pleased to report that this year we are able to do so. We are committed to sustainable development and have identified five priorities to address: zero carbon, zero waste, health and happiness, sustainable materials and sustainable transport. Having consulted across the charity we have agreed targets as follows:

Priority Target Zero carbon A reduction of 10 per cent in total carbon generated over 5 years Zero waste A target recycling rate of 40 per cent for 2011/12. A target to reduce the total waste produced by the charity by 10 per cent over 5 years. Sustainable transport To reduce air and road travel by 2.5 per cent per annum for five years. Sustainable materials Developing a sustainable procurement policy. Health and happiness To reduce staff sickness levels and improve staff satisfaction ratings in the bi-annual staff survey.

Figures for 2010/11 will form our baseline for these targets. We are planning a series of workshops around the UK for next year to promote our sustainable development objectives to our colleagues and to engage them in the process of becoming a sustainable organisation. We follow the international standard ISO 14001 and are committed to continual improvement and to meeting or exceeding the requirements of applicable environmental legislation through our policies and procedures. Our work in 2010/11 (continued)

The table below shows the amount of carbon generated by the Charity in our buildings in the last three years.

Year Tonnes of CO2 2008 4,031 2009 3,940 2010/11 4,105

This year has seen a small increase in the amount of carbon we have generated. This is attributable to an increase in consumption resulting from the rebuilding of our Rushton School. The energy usage in our buildings, when calculated on the basis of the floor space we occupy, equates to 332.7 kWh per square metre for the year under review; better than the UK average of 400 kWh (BioRegional Development Group). Recently negotiated contracts for RNIB’s largest electrical consuming sites have enabled us to secure sustainable energy agreements for our two most significant sites, Judd Street and Peterborough. This agreement has certified that the electricity for these two sites is from sustainable energy sources such as wind, water and solar power generation. The carbon generated by the other group charities in providing energy for their buildings is as follows.

Charity Tonnes of CO2 Action for Blind People 2,746 Cardiff, Vales and Valleys 89 National Talking Newspapers 48 and Magazines

To help us to better understand the overall impact our activities have on the environment we are also measuring the amount of carbon generated through rail and air travel. For the 2010/11 financial year this equates to 432 tonnes. We are investigating the feasibility of video conferencing to avoid unnecessary travel.

35 36 Our work in 2010/11 (continued)

We continue to work hard to reduce the carbon footprint of our fleet of vehicles. In this financial year, the proportion of cars using fuel-efficient/low CO2 petrol/electric hybrid engines has increased to 11 per cent, and the level of uptake is increasing. Our Peterborough site is our biggest energy user. The new heating, ventilation and air conditioning system, which is a more efficient system than the one it replaces, was switched on in October 2010. The building management system has enabled us to maintain control of, and monitor, temperatures in open plan areas providing a consistent approach. Our Peterborough offices have also opted to substitute individual waste bins for two communal bins serving approximately 25 occupants. The effect has been to separate out paper waste, reduce the quantity of bin liners used each day by a third and to have raised consciousness with regard to waste treatment. This year, RNIB Charity generated 1,585 tonnes (1,747 tonnes in 2010) of waste and recycled 34.5 tonnes (35.5 tonnes 2010) of CDs and their envelopes. The Charity achieved a recycling rate of 34.2 per cent (34.5 per cent in 2010) and the Group of 36.6 per cent. The small reduction in the Charity recycling rate for 2010/11 is due a fall in the amount of computer equipment recycled. During the year we had our Waste Electrical and Electronic Equipment (WEEE) monitoring and reporting procedures audited. Only minor recommendations were made for ongoing arrangements. We continue to promote the importance of correct disposal of WEEE to all our customers through our printed catalogues and online shop. We seek to improve the environmental performance of this equipment through its lifecycle and are committed to meeting the recommendations made by the audit. This year our water consumption fell from 41,010 to 39,497 cubic metres per annum. The process of reviewing our suppliers to achieve our ambition of only working with those with sound environmental principles and practices is continuing. Signed on behalf of RNIB Trustees

Kevin Carey, RNIB Chair 37 38 Independent auditor’s report to the trustees of RNIB We have audited the financial statements of Royal National Institute of Blind People for the year ended 31 March 2011 which comprise the Consolidated Statement of Financial Activities, the Group and Parent Charity Balance Sheets, the Group Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Respective responsibilities of trustees and auditors As explained more fully in the “Statement of Trustees’ Responsibilities” section earlier in this report, the trustees are responsible for the preparation of financial statements which give a true and fair view.

We have been appointed as auditors under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 43 of the Charities Act 1993 and report in accordance with regulations made under those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the charity’s trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and Regulation 30 of The Charities (Accounts and Reports) Regulations 2008 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s and 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. Independent auditor’s report to the trustees of RNIB (continued)

In addition, we read all the financial and nonfinancial information in the RNIB Group Annual Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements In our opinion the financial statements: l give a true and fair view of the state of the group’s and parent charity’s affairs as at 31 March 2011 and of the group’s incoming resources and application of resources and cash flows, for the year then ended l have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice l have been prepared in accordance with the requirements of the Charities Act 1993, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion: l the information given in the RNIB Group Annual Report is inconsistent in any material respect with the financial statements; or l proper accounting records have not been kept by the parent charity; or l the parent charity financial statements are not in agreement with the accounting records and returns; or l we have not received all the information and explanations we require for our audit.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London

21 July 2011 PricewaterhouseCoopers LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 39 40 Consolidated statement of financial activities for the year ended 31 March 2011 Notes Unrestricted Restricted Endowment Total Total funds funds funds 2011 2010 £’000 £’000 £’000 £’000 £’000 Incoming resources Incoming resources from generated funds Voluntary income Donations and gifts 18,302 12,824 - 31,126 30,233 Legacies 30,393 5,415 - 35,808 38,069 Total voluntary income 48,695 18,239 - 66,934 68,302 Activities for generating funds Merchandising and sponsorship 295 320 - 615 261 Investment income 2 1,190 483 - 1,673 1,690 Total incoming resources from generated funds 50,180 19,042 - 69,222 70,253 Incoming resources from charitable activities 1.5 Stopping people losing their sight unnecessarily 400 101 - 501 489 Supporting independent living 28,079 15,372 - 43,451 43,337 Creating an inclusive society 1,859 164 - 2,023 1,857 Total incoming resources from charitable activities 1.5 30,338 15,637 - 45,975 45,683 Other incoming resources Fair value of acquired net assets 3 - 463 30 493 17,696 Other income – VAT claim 191 - - 191 1,513 Other Income – defined benefit pension scheme 422 8 - 430 - Total incoming resources 1.5 81,131 35,150 30 116,311 135,145 Resources expended Costs of generating funds Costs of generating voluntary income 1.6 15,858 25 - 15,883 16,708 Consolidated statement of financial activities for the year ended 31 March 2011 (continued)

Notes Unrestricted Restricted Endowment Total Total funds funds funds 2011 2010 £’000 £’000 £’000 £’000 £’000 Merchandising and sponsorship costs 12 309 - 321 306 Investment management fees 116 13 45 174 179 Total costs to generate funds 1.6/6/7 15,986 347 45 16,378 17,193 Charitable activities Stopping people losing their sight unnecessarily 3,117 288 - 3,405 3,403 Supporting independent living 60,116 28,155 - 88,271 96,681 Creating an inclusive society 9,433 703 - 10,136 11,052 Total charitable activity costs 72,666 29,146 - 101,812 111,136 Governance Costs 5 1,232 359 - 1,591 1,821 Total resources expended 1.6/5/6 89,884 29,852 45 119,781 130,150 Net (outgoing) incoming resources before transfers (8,753) 5,298 (15) (3,470) 4,995 Transfers between funds 20 6,707 (1,689) (5,018) - - Net (outgoing) incoming resources before other (2,046) 3,609 (5,033) (3,470) 4,995 recognised gains and losses Net gains on investment assets 615 71 294 980 7,375 Actuarial gain (loss) on defined benefit pension scheme 22 9,122 1,190 - 10,312 (3,111) Net movement in funds 7,691 4,870 (4,739) 7,822 9,259 Total funds brought forward as previously stated 65,745 20,939 10,265 96,949 87,690 Total funds carried forward 20 73,436 25,809 5,526 104,771 96,949

A Statement of Total Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities. Incoming resources of the Charity during the year were £101,395,000 (2010: £103,493,000) less resources expended by the Charity at £107,563,000 (2010: £116,535,000) led to a deficit of £6,168,000 (2010: £13,042,000). All incoming resources, resources expended and resulting net movements in funds are derived from continuing activities. The notes that follow form part of the financial statements. 41 42 Balance sheets at 31 March 2011

Notes Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Fixed assets Tangible assets 13 80,227 73,921 65,188 55,424 Investments 14 35,272 42,124 32,241 40,405 Total fixed assets 115,499 116,045 97,429 95,829 Current assets Stocks and work-in-progress 15 2,159 2,624 1,994 2,474 Debtors: amounts falling due within one year 16 12,249 12,467 11,448 10,583 amounts falling due after one year 17 75 200 75 200 Investments 14 2,752 471 350 13 Short term deposits 2,386 - 2,386 - Cash at bank and in hand 4,755 1,763 128 58 Total current assets 24,376 17,525 16,381 13,328 Creditors: amounts falling due within one year 18 13,006 12,925 10,540 9,747 Net current assets 11,370 4,600 5,841 3,581 Total assets less current liabilities 126,869 120,645 103,270 99,410 Creditors: amounts falling due after more than one year 19 21,507 10,480 21,136 10,252 Net assets excluding pension scheme liability 105,362 110,165 82,134 89,158 Defined benefit pension scheme (liability) asset 22 (591) (13,216) 1,723 (9,164) Net assets including pension scheme liability 21 104,771 96,949 83,857 79,994 Balance sheets at 31 March 2011 (continued) Notes Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 The funds of the group/charity: Endowment funds 20 5,526 10,265 5,494 10,264 Restricted income funds 20 25,809 20,939 4,927 3,985 Unrestricted income funds: Designated 20 51,310 55,848 51,310 55,848 General 20 20,403 19,061 20,403 19,061 Pension deficit 20/22 1,723 (9,164) 1,723 (9,164) Total unrestricted income funds 20 73,436 65,745 73,436 65,745 Total group/charity funds 20 104,771 96,949 83,857 79,994

Approved by the Board of Trustees and authorised for issue on 14 July 2011 and signed on behalf of RNIB by

Kevin Carey, Chair Terry Moody, Honorary Treasurer.

43 44 Group cashflow statement for

2011 2010 the year ended 31 March 2011 £’000 £’000 Net cash outflow from operating activities (4,038) (11,386) Returns on Investments and servicing of finance Investment income 1,673 1,690 Interest element of finance lease rental payments (27) (65) Net cash flow from investments and servicing of finance 1,646 1,625 Capital expenditure and financial investment Purchase of tangible fixed assets (12,815) (7,320) Proceeds from sale of tangible fixed assets 1,577 30 Purchase of investments (11,721) (27,173) Proceeds from sale of investments 19,725 34,745 Net decrease (increase) in endowment investments 4,739 (2,672) Proceeds from sale of property held for sale 435 - Cash acquired on association (18) (416) Net cash outflow from capital expenditure and financial investment 1,922 (2,806) Net cash outflow before management of liquid resources and financing (470) (12,567) Management of liquid resources Cash (deposited) withdrawn from short term deposits (2,386) 5,763 Net cash flow from the management of liquid resources (2,386) 5,763 Financing Net (decrease) increase in endowment investments (4,739) 2,672 Finance loan advance received 11,136 6,800 Capital element of finance lease rental payments (519) (829) Net cash inflow from financing activities 5,878 8,643 Increase in cash 3,022 1,839 Cash at 1 April 1,713 (542) Cash acquired on merger/association 18 416 Cash at 31 March 4,753 1,713 Group cashflow statement for the year ended 31 March 2011 (continued)

Reconciliation of net income to net cash outflow 2011 2010 from operating activities £’000 £’000 Net (outgoing) incoming resources before transfers (3,470) 4,995 Investment income (1,673) (1,690) Depreciation 2,844 2,713 Non-monetary assets acquired on association (475) (17,281) Gifted assets (350) - Investment management fees charged to portfolio 80 110 Loss on disposal of tangible fixed assets 83 467 Loss on disposal of property held for sale 23 - Increase in current creditors 401 2,588 Decrease in long term creditors (27) (10) Decrease in pension provision (2,313) (447) Interest charged on finance lease payments 27 65 Decrease (increase) in debtors 347 (3,059) Decrease in stock 465 163 Net cash outflow from operating activities (4,038) (11,386)

Analysis of change in net funds 31 March Cashflow 31 March Cash acquired Cashflow 31 March 2009 2010 2010 on association 2011 2011 2011 £’000 £’000 £’000 £’000 £’000 £’000 Cash at bank 910 853 1,763 18 2,974 4,755 Bank overdraft (1,036) 986 (50) - 48 (2) Total cash (126) 1,839 1,713 18 3,022 4,753 Debt due within one year (829) 310 (520) - 520 - Debt due after one year (4,239) (6,281) (10,460) - (11,047) (21,507) Total change in net funds (5,194) (4,073) (9,267) 18 (7,505) (16,754)

45 46 Notes to the financial statements for the year ended 31 March 2011

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, in accordance with applicable accounting standards in the United Kingdom and the Statement of Recommended Practice – “Accounting and Reporting by Charities” (SORP 2005) as revised in May 2008, and the Charities Act 1993, as updated by the Charities Act 2006. 1.2 Group financial statements The results of each of RNIB’s subsidiary undertakings, as listed in note 4, have been incorporated in these consolidated 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 are assessed on a fair value basis for the purposes of consolidation into the results for the RNIB Group. The results of the subsidiaries acquired during the year are included in the SOFA from the effective date of acquisition. The intra-group transactions, balances and unrealised profits are eliminated in full. Any negative goodwill arising is written off in the year of acquisition and included as an incoming resource within the SOFA. Where specific assets are gifted to RNIB as part of the acquisition, these are treated as a donation and transferred to RNIB charity. No separate Statement of Financial Activities (SOFA) has been presented for the Charity 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 & Customs as at the balance sheet date. Any foreign exchange gains or losses are charged to the SOFA. 1. Statement of accounting policies (continued) 1.4 Fund accounting Unrestricted funds comprise accumulated surpluses and deficits on general funds that are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity. Designated funds are unrestricted funds that the trustees of the Charity have set aside, out of general funds and comprise sums of money for specific projects that can either be the updating of existing, or the development and piloting of new, charitable services. Also within the designated funds are ‘service properties’ and ‘other fixed assets’. ‘Service properties’ represents the value of RNIB’s interests in land and buildings, in use, for the provision of services to people with sight problems. This value is shown in a separate designated fund, as the properties represented are essential for the provision of RNIB’s services. Transfers in respect of additions to property in the year are made from the general fund and the development fund. Transfers are made from this fund to the general fund in respect of property disposals during the year. Property depreciation is charged to this fund. ‘Other fixed assets’ represents other assets in use by RNIB. The assets of associated charities are held within the restricted funds. Restricted funds comprise income received with special conditions attached. Income for a specific purpose not spent in any year is carried forward in the relevant fund. Also within restricted funds are the results of the associated charities, which are operating under narrower objectives than those of RNIB. Endowments received are credited directly to the relevant endowment fund. Income arising from the related investments is allocated to the general fund or to the relevant restricted fund, depending on the terms of endowment. 1.5 Incoming resources Donated goods and services are included at the value to the Charity where these can be quantified. No amounts are included in these financial statements for the services donated by volunteers. Income from trading in subsidiary undertakings is transferred to the Charity by covenanting the profits of those undertakings. Donations are accounted for as soon as their amount and receipt is certain. Donations include Gift Aid based on amounts recoverable at the accounting date. Legacy income is recognised on a receivable basis when there is sufficient evidence to provide necessary certainty that legacy income will be received and the value of the incoming resources can be measured with sufficient reliability. Investment income, interest on deposits and income in connection with services to people with sight problems 47 48 1. Statement of accounting policies (continued) 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. Investment income arising on endowment funds is credited to the appropriate fund in accordance with the prescribed conditions. 1.6 Resources expended (a) Expenditure, including irrecoverable VAT, is accounted for on an accruals basis. (b) Included within charitable activity costs is an apportionment of public awareness expenditure representing the costs incurred by RNIB in educating the public to be aware of the needs of people with sight loss. (c) Support costs include both group and corporate costs and are incurred in support of direct service expenditures. Allocation of support service costs is on a mixture of bases including a staff time-based system of apportionment. (d) Fundraising expenses include those costs incurred in raising donations and legacies. (e) Governance costs are incurred in relation to the running of the Charity. This includes strategic planning and attending to the statutory affairs of the Charity. (f) Grants payable are charged to the SOFA when a constructive obligation exists, that is when the recipient has been informed. 1.7 Fixed assets Tangible assets are recorded at cost, including irrecoverable VAT, or where donated, open market valuation at the time of donation. Under the transitional provisions of Financial Reporting Standard 15 (FRS15), RNIB has adopted the valuations of properties as at 31 March 1999, where known, as cost and these will not be updated. Where assets are acquired through entering into Association agreements, then the cost of these, are included at their fair value as at the agreement date. Assets in the course of construction are transferred to the relevant category of asset and depreciated when practical completion is achieved. The minimum threshold for capitalisation is £2,500. 1. Statement of accounting policies (continued)

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:

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 Motor vehicles; fixtures and fittings; equipment 5 years Computer hardware 3 years

Fixed assets are subject to review for impairment when there is an indication of a reduction in their carrying value. Any impairment is recognised in the SOFA in the year in which it occurs. 1.8 Investments Listed investments are stated at mid-market value at the balance sheet date. Investment properties are stated at market value as advised by RNIB’s property advisors 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 Stocks Stock of finished goods held for resale is valued at the lower of cost and net realisable value. Cost is standard cost on a first-in first-out basis. Finished goods for resale comprises products suitable for use by blind and partially sighted people, Christmas cards and gifts.

49 50 1. Statement of accounting policies (continued) 1.10 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 statement of financial activities as an “other” incoming resource. Actuarial gains and losses are recognised immediately in the statement of financial activities as “Actuarial gain, or loss, on Defined benefit pension scheme”. From 1 April 2005, for new members, pension contributions for defined benefits were capped, with contributions above that cap being defined contributions. 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. The Group and Charity defined benefit pension scheme liability/asset is shown on the face of the Balance Sheet. 1.11 Leased assets RNIB has entered into finance leases for talking book players with a view to improving and increasing the RNIB Talking Book Service for people with sight problems. Leases are regarded as finance leases where their terms transfer to the lessee substantially all of the benefits and burdens of ownership other than the right to legal title. The obligations to the lessor are shown as part of the borrowings and the rights in the corresponding assets are treated in the same way as owned fixed assets. All operating leases and rental expenses are charged to the SOFA as incurred over the term of the lease on a straight line basis. 1.12 Taxation RNIB is a registered charity, and as such is entitled to certain tax exemptions on income and profit from investments and surpluses on any trading activities carried out in furtherance of the Charity’s primary objectives, if these profits are applied solely for charitable purposes. 2. Investment income

2011 2010 Group Group £’000 £’000 General funds Investment income from 1,137 1,188 quoted investments Bank interest receivable 7 2 Rents 46 47 Restricted funds Investment income from 422 364 quoted investments Bank interest receivable 5 - Rents 56 89 Total 1,673 1,690

Details of our investment policy can be found in the financial review.

51 52 3. Net assets acquired on merger/trusteeship

Under a Scheme approved by the Charity Commission on the 28 September 2010, RNIB has been made the sole Corporate Trustee of the Glynn Vivian Home of Rest for the Blind (Glynn Vivian) and as such has been consolidated on the grounds of control. The charity has ceased operations and therefore their accounts have been incorporated on a break up basis. Under the scheme titles to the land and buildings of the charity were transferred to RNIB to be held in trust for the charity. Action merged with Staffordshire Blind (Staffordshire) and The Blind Society for North Tyneside Limited (North Tyneside) on the 1 April 2010. Both societies are charitable companies limited by guarantee and registered in England and Wales, incorporated in Great Britain. A summary follows of the fair values of the net assets acquired.

Action Action North Glynn Vivian Total Staffordshire Tyneside 2011 £’000 £’000 £’000 £’000 Fixed assets 147 250 - 397 Investments 210 - 30 240 Current assets 17 13 6 36 Creditors – amounts falling due within one year - 12 15 27 Creditors – amounts falling due after one year - 153 - 153 Net assets 374 98 21 493 Net assets in the subsidiary 374 98 21 493 Fair value adjustment - - - -

There were no purchase costs incurred in acquiring these net assets. The resulting negative goodwill at £493,000 has been written off in the year 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 2011 of the subsidiaries of RNIB operating under association agreements follows:

2011 2011 2011 2011 2010 Action CVV NTNM Total Total associated associated charities charities (restated) £’000 £’000 £’000 £’000 £’000 Total incoming resources 26,980 1,417 1,116 29,513 29,069 Total outgoing resources (24,477) (471) (1,085) (26,033) (28,778) Net incoming (outgoing) resources before 2,503 946 31 3,480 291 transfers Net gains on investment assets 68 2 - 70 486 Losses on revaluation of fixed assets - - - - (7,238) Actuarial gain (loss) on defined benefit pension 1,114 76 - 1,190 (1,568) scheme Net movement in funds 3,685 1,024 31 4,740 (8,029) Funds brought forward 16,207 (202) 150 16,155 24,184 Funds carried forward 19,892 822 181 20,895 16,155

The funds brought forward within the accounts of CVV have been restated to incorporate the pension scheme deficit of CVV in the sum of £982,000, however this adjustment had already been allowed for within the consolidation last year. The restatement comprised of a £37,000 costs adjustment, actuarial loss for the year of £274,000 and a brought forward defecit of £671,000.

53 54 4. Net income from trading activities of subsidiary undertakings (continued) A summary of the net assets as at 31 March 2011 of the subsidiaries of RNIB operating under association agreements follows: 2011 2011 2011 2011 2010 Action CVV NTNM Total Total associated associated charities charities £’000 £’000 £’000 £’000 £’000 Fixed assets 17,567 51 426 18,044 19,423 Current assets 7,200 1,768 146 9,114 4,939 Creditors – amounts falling due within one year 3,167 241 170 3,578 3,927 Creditors – amounts falling due after one year 150 - 221 371 228 Pension scheme liability 1,558 756 - 2,314 4,052 Net assets 19,892 822 181 20,895 16,155

Action delivers regional services in England through their Action Teams, grant funded by RNIB. Action also delivers services in the areas of work, leisure, housing, support for beneficiaries, and information and education. RNIB provides the fundraising service, with net fundraising receipts being restricted for Action. Further, RNIB provides funding to deal with the structural deficits of Action. That funding ceases in the year ending 31 March 2013. In the year Action merged with Staffordshire and North Tyneside. RNIB has entered into an additional agreement with Action, whereby additional funding is made to Action to support their work with, and the fundraising for, these Local Societies. Within the year, Action repaid the remaining £250,000 outstanding at 31 March 2010 re the interest free loan facility for Action in the sum of £1.5million. The sum of such grants amounted to £13,177,000 in the year. Cardiff, Vales and Valleys (CVV) provide a wide range of services to blind and partially sighted people within the counties of Cardiff and the Vale of Glamorgan. RNIB has paid a grant to CVV in the year amounting to £300,000. National Talking Newspapers and Magazines (NTNM) provides newspapers, magazines and information in accessible formats for people with sight problems and also people with other disabilities. RNIB provides operational funding and the fundraising service, with net fundraising receipts being restricted for NTNM. 4. Net income from trading activities of subsidiary undertakings (continued)

The results for NTNM are Group figures and include the results of the wholly owned subsidiary Talking Newspapers Enterprises Limited. RNIB has paid grants to NTNM in the year amounting to £480,000. RNIB also has four wholly owned subsidiaries. These are RNIB Enterprises Limited, RNIB Services Limited, National Library for the Blind and Blind Centre for Northern Ireland. In addition, new this year is the Glynn Vivian Home of Rest for the Blind (Glynn Vivian). A summary of the results for the year ended 31 March 2011 of the subsidiaries of RNIB follows:

RNIB RNIB National Blind Glynn Total Total Enterprises Services Library for Centre for Vivian 2011 2010 Limited Limited the Blind Northern Ireland £’000 £’000 £’000 £’000 £’000 £’000 £’000 Total incoming resources 295 4,318 305 30 46 4,994 5,065 Total outgoing resources (17) (4,308) (9) (1) (144) (4,479) (4,751) Net incoming (outgoing) resources 278 10 296 29 (98) 515 314 before transfers Loss on investments - - - - (3) (3) - Amount gifted/covenanted to RNIB (278) (10) (296) (29) - (613) (314) Net movement in funds - - - - (101) (101) - Funds brought forward 5 - - - 120 125 5 Funds carried forward 5 - - - 19 24 5

The funds brought forward at £125,000 includes an additional £120,000 as a result of the acquisition of the Glynn Vivian Home of Rest for the Blind in the year. The results for Glynn Vivian are for the whole year. The consolidated results for RNIB includes the post Trusteeship performance with the net assets at the date of Trusteeship being included by way of gift.

55 56 4. Net income from trading activities of subsidiary undertakings (continued) A summary of the net assets as at 31 March 2011 of the subsidiaries of RNIB follows:

RNIB RNIB National Blind Glynn Total Total Enterprises Services Library for Centre for Vivian 2011 2010 Limited Limited the Blind Northern Ireland £’000 £’000 £’000 £’000 £’000 £’000 £’000 Fixed assets - - - - 31 31 - Current assets 358 288 4 6 4 660 641 Creditors – amounts falling due within 278 288 4 6 16 592 436 one year Creditors – amounts falling due after 75 - - - - 75 200 one year Net assets 5 - - - 19 24 5

RNIB Enterprises Limited The trading activities include commercial sponsorship and a scheme for the recycling of toner cartridges, with the consent of RNIB. The £200,000 loan facility has been reduced to £75,000 in the year and is made by RNIB to cover the working capital requirements. Interest is charged at 2 per cent above base rate on a quarterly basis. RNIB Services Limited administers RNIB’s school fees. National Library for the Blind (NLB) exists as a shell charity to receive donations and legacies, which are transferred to RNIB to be ring-fenced for the RNIB National Library Service. Blind Centre for Northern Ireland (BCNI) exists as a shell charity to receive donations and legacies, which are transferred to RNIB to be ring-fenced for RNIB Northern Ireland. Glynn Vivian Within the year the then trustees of Glynn Vivian decided it was no longer a going concern and therefore it was decided to cease operations with effect from 31 July 2010. On the 28 September 2010 RNIB became the sole corporate trustee and on the grounds of control has been consolidated within the accounts of the RNIB Group. A summary of the results for the year ended 31 March 2011 of all RNIB subsidiaries follows: 4. Net income from trading activities of subsidiary undertakings (continued)

Associated Subsidiaries Total subsidiaries Total subsidiaries charities 2011 2010 £’000 £’000 £’000 £’000 Total incoming resources 29,513 4,994 34,507 34,134 Total outgoing resources (26,033) (4,479) (30,512) (33,529) Net incoming resources before transfers 3,480 515 3,995 605 Net gains (losses) on investment assets 70 (3) 67 486 Loss on the revaluation of fixed assets - - - (7,238) Actuarial gain (loss) on defined benefit pension 1,190 - 1,190 (1,568) scheme Amount gifted/covenanted to RNIB - (613) (613) (314) Net movement in funds 4,740 (101) 4,639 (8,029) Funds brought forward 16,155 125 16,280 24,189 Funds carried forward 20,895 24 20,919 16,160

A summary of the net assets as at 31 March 2011 of all RNIB subsidiaries follows:

Associated Subsidiaries Total subsidiaries Total subsidiaries charities 2011 2010 £’000 £’000 £’000 £’000 Fixed assets 18,044 31 18,075 19,423 Current assets 9,114 660 9,774 5,580 Creditors – amounts falling due within one year 3,578 592 4,170 4,363 Creditors – amounts falling due after one year 371 75 446 428 Pension scheme liability 2,314 - 2,314 4,052 Net assets 20,895 24 20,919 16,160

The total net assets of the associated charities at £20,895,000 are held within the Group restricted and endowments funds as detailed in note 20. 57 58 5. Governance costs Total Total Total Total 2011 2010 2011 2010 Group Group Charity Charity £’000 £’000 £’000 £’000 Internal audit 112 127 86 102 External audit – PricewaterhouseCoopers 122 122 70 72 External audit – other 18 6 - - Other services – PricewaterhouseCoopers 15 29 15 29 Legal fees – Associated charities 145 340 145 340 Trustees’ expenses 85 124 74 112 Costs incurred in running the Chairman’s Office 281 350 281 350 (including international activity – for example World Blind Union) General costs incurred in servicing RNIB’s 813 723 553 474 corporate committees and the statutory affairs of the charity Total governance costs 1,591 1,821 1,224 1,479 6. Resources expended – Group

Direct costs Support Total Total costs 2011 2010 £’000 £’000 £’000 £’000 Costs of generating funds Costs of generating voluntary income 11,742 4,141 15,883 16,708 Merchandising and sponsorship costs 315 6 321 306 Investment management fees 174 - 174 179 Total costs to generate funds 12,231 4,147 16,378 17,193 Charitable activities Stopping people losing their sight 2,698 707 3,405 3,403 unnecessarily Supporting independent living 75,700 12,571 88,271 96,681 Creating an inclusive society 9,082 1,054 10,136 11,052 Total charitable activity costs 87,480 14,332 101,812 111,136 Governance costs 1,170 421 1,591 1,821 Total resources expended 100,881 18,900 119,781 130,150

59 60 7. Support costs allocation

Human Finance Information Corporate Other Total Total Resources and services 2011 2010 knowledge services £’000 £’000 £’000 £’000 £’000 £’000 £’000 Costs of generating funds Costs of generating voluntary 356 171 398 150 3,066 4,141 5,450 income Merchandising and sponsorship - 5 - 1 - 6 - costs Total costs to generate funds 356 176 398 151 3,066 4,147 5,450 Charitable activities Stopping people losing their 80 82 93 30 422 707 733 sight unnecessarily Supporting independent living 2,021 1,632 3,465 1,208 4,245 12,571 12,858 Creating an inclusive society 165 71 244 61 513 1,054 1,200 Total charitable activity costs 2,266 1,785 3,802 1,299 5,180 14,332 14,791 Governance costs - 85 1 8 327 421 460 Total resources expended 2,622 2,046 4,201 1,458 8,573 18,900 20,701

Basis of allocation Human resources – Headcount and estimated time Finance – Invoicing activity, payslips and estimated time Information and knowledge services – Networked computers and estimated time Corporate services – Ordering activity, floor space and estimated time Other (including Business planning, Group support) – estimated time 8. Taxation

RNIB is a registered charity and is thus exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 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 accounts due to their policy of gifting all taxable profits to their parents each year.

9. Group employee remuneration

The average number of employees during the year was 2,804 (2010: 2,933), of which, the average full time equivalent was 2,192 (2010: 2,296). Total emoluments for all staff for the year amounted to £68,602,000 (2010: £71,238,000). The total emoluments are analysed as shown below.

2011 2010 £’000 £’000 Salary costs 57,645 60,634 Employer’s NI contributions 5,140 5,566 Employer’s pension contributions 5,817 5,038 Total emoluments 68,602 71,238

61 62 9. Group employee remuneration (continued) The following numbers of employees received total emoluments within the bands shown.

2011 2010 Number Number Between £60,001 and £70,000 19 24 Between £70,001 and £80,000 6 10 Between £80,001 and £90,000 - 4 Between £90,001 and £100,000 3 1 Between £100,001 and £110,000 3 3 Between £130,001 and £140,000 1 1

Included in the bands £60,001 through to £90,000 are payments made to members of staff on termination of employment. Also of the number of staff disclosed in the table above RNIB made payments on behalf of 27 (2010: 29) employees in respect of the RNIB Retirement Benefit Scheme and the Teacher’s Pension Scheme, and there were payments made to nine members of staff (2010: eight) in respect of the defined contribution element of the RNIB Retirement Benefit Scheme. The total amount of employer contributions paid in respect of these employees was £313,120 (2010: £306,796). In addition Action made payments on behalf of four (2010: 12) employees in respect of pension contributions totalling £27,000 (2010: £75,000). 10. RNIB Trustees’ expenses and related parties transactions

Many Trustees and/or their organisations bear the cost of attending meetings themselves. They receive no benefits from the Charity except as users of our services. Trustees of the Charity represent agencies and organisations throughout the United Kingdom, and they attend many committee, sub-committee and Boards of Governors’ meetings, most of which are held at the Charity’s London service centre. A total of £38,324 was paid to, and on behalf of, 26 Trustees of the Charity as reimbursement of travel and subsistence expenses incurred in attending these meetings (2010: £63,000 to 27 Trustees). In addition £9,651 was paid to four of the Trustees of the Charity as reimbursement of overseas travel and subsistence incurred in attending international meetings and conferences (2010: £23,142 to seven Trustees), and £6,823 in relation to other expenses incurred in the UK. The cost of lunches and overnight stays in RNIB establishments during the meetings cost a further £2,378 (2010: £4,703). During the year RNIB paid Kevin Carey, Chair of RNIB, £24,000 (2010: £16,581) as remuneration in respect of carrying out his duty as Chair of RNIB. This payment has been made with the consent of the Charity Commission. In addition RNIB has paid £20,100 (2010: £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. Alan Suttie, Chief Executive of Fife Society for the Blind, is an RNIB Trustee who is also a Trustee of Action on behalf of RNIB. RNIB has paid £2,400 as a donation to the Fife Society for the Blind to recompense the society for the time he spends on these duties. RNIB has also paid £45,196 (2010: £45,451) to Fife Society for the Blind in respect of rent, service charge and office costs for the year. RNIB has provided funding in the sum of £45,000 for a Fellowship on the Clore Social Leadership Programme. The Fellow is recruited through an open application process and John Ramm, a Trustee of RNIB, was successful in securing the Fellowship on this programme. The Charity enters a comprehensive range of insurance policies to protect trustees, officers and employees against losses and legal liabilities arising from neglect or default in the course of business. Total premiums for these policies amounted to £30,975 (2010: £30,975).

63 64 11. Grants payable

Grants payable in the year amount to £382,000, with 11 grants of £5,000 or above, amounting to £145,000. In addition, approaching 700 small grants at an individual value of less than £5,000 were made.

Notes 2011 2010 £’000 £’000 Blind Society for North Tyneside - 10 Centre for Studies on Inclusive Education 5 5 ClearVision - 7 Clore Social Leadership Programme – Fellowship 10 45 45 DAISY Consortium 5 - European Blind Union – Office Sponsorship 17 17 Future Jobs – match funding 6 - Louis Braille Museum 9 - NALSVI/Visionary 24 20 Seeability - 6 Sightsavers 5 - Soundaround - 5 South Lincolnshire Blind Society 7 9 University of Leicester - 5 World Blind Union – Haiti Earthquake 5 - World Blind Union – Office Sponsorship 17 16 World Blind Union – Support for Fundraising - 11 position York Blind and Partially Sighted Society - 10 Other grants – all under £5,000 237 260 Total grants payable 382 426 12. Total movement of funds in the year is stated after charging

Total Total 2011 2010 Group Group £’000 £’000 Auditor’s remuneration Statutory audit fee – Charity 70 68 Statutory audit fee – Subsidiary companies 13 12 Statutory audit fee – Associated charities 57 48 Audit of grant claims - 9 Audit of teachers pension scheme 3 4 Other non statutory audit work 24 29 Financial advice and other services 12 - Operating lease payments 1,755 1,376 Foreign exchanges (gains) losses 47 (19) Depreciation charge 2,844 2,713

65 66 13. Tangible fixed assets

Group Service Service Machinery, Talking Book Total properties property vehicles and players under equipment construction £’000 £’000 £’000 £’000 £’000 Cost Balance 1 April 2010 72,339 10,635 8,245 19,193 110,412 Fair value additions under acquisition 395 - 1 - 396 Additions 893 10,390 1,532 - 12,815 Elimination on Disposal (1,719) - (1,279) (11,229) (14,227) Transfers 2,326 (2,326) - - - Transfer to property held for sale (2,511) - - - (2,511) Balance 31 March 2011 71,723 18,699 8,499 7,964 106,885 Accumulated depreciation Balance 1 April 2010 11,748 - 5,719 19,024 36,491 Charge for year 1,768 - 971 105 2,844 Elimination on Disposal (95) - (1,244) (11,229) (12,568) Transfer to property held for sale (109) - - - (109) Balance 31 March 2011 13,312 - 5,446 7,900 26,658 Net book value 31 March 2011 58,411 18,699 3,053 64 80,227 Net book value 31 March 2010 60,591 10,635 2,526 169 73,921 13. Tangible fixed assets (continued)

Charity Service Service Machinery, Talking Book Total properties property vehicles and players under equipment construction £’000 £’000 £’000 £’000 £’000 Cost Balance 1 April 2010 54,575 10,635 7,123 19,193 91,526 Additions 828 10,390 607 - 11,825 Elimination on Disposal (212) - (984) (11,229) (12,425) Transfers 2,326 (2,326) - - - Balance 31 March 2011 57,517 18,699 6,746 7,964 90,926 Accumulated depreciation Balance 1 April 2010 11,388 - 5,690 19,024 36,102 Charge for year 1,370 - 463 105 1,938 Elimination on Disposal (91) - (982) (11,229) (12,302) Balance 31 March 2011 12,667 - 5,171 7,900 25,738 Net book value 31 March 2011 44,850 18,699 1,575 64 65,188 Net book value 31 March 2010 43,187 10,635 1,433 169 55,424

Service properties are used to provide services to blind and partially sighted people. Of the net book value of property used by the group, £17,385,000 (2010: £17,810,000) represents leaseholds of more than 50 years whilst £1,897,000 (2010: £1,621,000) represents leaseholds of less than 50 years. Service property under construction relates to works carried out to date in respect of the RNIB Pears Centre for Specialist Learning. A transfer has been made to the designated service properties fund in the sum of £11,097,000 comprising additions of £11,218,000 less £121,000 disposals in the year.

67 68 13. Tangible fixed assets (continued) A transfer has been made to the designated other fixed assets fund in the sum of £605,000 comprising additions of £607,000 less £2,000 disposals in the year. Some talking book players are still held under finance lease agreements at 31 March 2011 but have been fully depreciated. Included in Talking Book Service expenditure is interest payable of £30,000 (2010: £69,000) and a depreciation charge of £nil (2010: £98,000) which relates to leased talking book players. The net book values of fixed assets of the associated charities are held within the restricted funds as set out in note 20. 14. Investments

Unrestricted funds Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Quoted Market value at beginning of year 28,448 32,463 28,453 32,468 Acquisitions at cost 5,091 26,666 5,091 26,666 Transfer from Endowment Funds at opening 4,938 - 4,938 - market value Disposals at opening market value (13,808) (32,463) (13,808) (32,463) Net gain (loss) on revaluation 372 1,782 372 1,782 Market value at the end of the year 25,041 28,448 25,046 28,453 Historical cost at the end of the year 24,592 28,380 24,597 28,385 Property Market value at beginning of year 1,666 1,577 1,666 1,577 Net gain (loss) on revaluation 12 89 12 89 Market value at the end of the year 1,678 1,666 1,678 1,666 Historical cost at the end of the year 600 600 600 600 Total market value at the end of the year 26,719 30,114 26,723 30,119 Total historical cost at the end of the year 25,192 28,980 25,197 28,985

69 70 14. Investments (continued)

Restricted funds Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Quoted Market value at beginning of year 1,745 16 22 16 Fair value additions under acquisition - 1,191 - - Acquisitions at cost 1,338 49 23 - Disposals at opening market value (124) (3) (22) - Net gain (loss) on revaluation 68 492 - 6 Market value at the end of the year 3,027 1,745 23 22 Historical cost at the end of the year 3,633 1,742 23 19

Endowment funds Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Quoted Market value at beginning of year 10,265 7,593 10,264 7,593 Acquisitions in CVV - 1 - - Acquisitions at cost 5,509 - 5,479 - Transfer to general funds (4,938) - (4,938) - Disposals at opening market value (5,326) - (5,326) - Net gain (loss) on revaluation 16 2,671 15 2,671 Market value at the end of the year 5,526 10,265 5,494 10,264 Historical cost at the end of the year 5,480 8,722 5,479 8,721 14. Investments (continued)

Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Unrestricted funds 26,719 30,114 26,724 30,119 Restricted funds 3,027 1,745 23 22 Endowment funds 5,526 10,265 5,494 10,264 Total market value of investments at end 35,272 42,124 32,241 40,405 of year

The market value of investments is further broken down as follows:

Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Unrestricted funds – UK Quoted 25,041 28,039 25,046 28,453 Unrestricted funds – Overseas Quoted - 409 - - Unrestricted funds – UK Property 1,678 1,666 1,678 1,666 Restricted funds – UK Quoted 3,027 1,745 23 22 Endowment funds – UK Quoted 5,526 10,265 5,494 10,264 Total 35,272 42,124 32,241 40,405

71 72 14. Investments (continued) Significant holdings Within the portfolio of quoted investments, the following holdings for the RNIB Group, all within the unrestricted funds, exceed five per cent of the total market value of the fund.

2011 2011 2010 2010 £’000 % £’000 % L&G Ethical Trust – Distribution Units 4,931 19.7 5,160 17.1 L&G Cash Trust – Accumulation Units 9,910 39.6 11,468 38.0 F&C Ethical Bond Share Class 2 10,199 40.7 11,820 39.2

In addition the Charity investments also include the following nominal holdings in subsidiary undertakings. The subsidiaries are all based within the United Kingdom and their accounting year ends are 31 March.

Subsidiary undertakings with a share Registered in Capital held Number of £1 capital % ordinary shares held RNIB Enterprises Limited England and Wales 100 5,000 RNIB Services Limited England and Wales 100 1 Total – direct 5,001 Action for Blind People Activities Limited England and Wales 100 2 Talking Newspapers Enterprises Limited England and Wales 100 100 Total – indirect 102 14. Investments (continued)

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 Registered in Company Charity Charity number – by guarantee number number Scotland Action England and Wales 26688 205913 SCO40050 CVV England and Wales 149982 214131 - NTNM England and Wales 01973092 293656 - BCNI Northern Ireland NI 20701 XN48801 - NLB England and Wales 00058823 213212 - Glynn Vivian England and Wales - 214330 - In addition to the fixed asset investments there are also some donated investments held by the Charity, which because of their nature are included within current assets. Current Asset Investments (including property held for sale)

General Funds Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Quoted Market value at beginning of year 471 60 13 60 Acquisitions at cost 27 - 27 - Transfers from fixed assets to property held for sale 2,402 458 - - Property received from Glynn Vivian at fair value 350 - 350 - and held for sale Disposals at opening market value (40) (44) (40) (44) Disposals of property held for sale (458) - - - Net loss on revaluation - (3) - (3) Market value at the end of the year 2,752 471 350 13 Historical cost at the end of the year 2,752 471 350 13 The transfer from fixed assets to property held for sale in 2011 refers to the Verney Road site occupied by Action. 73 74 15. Stocks Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Finished goods for resale 1,794 2,069 1,629 1,919 Raw materials and consumables 365 555 365 555 Total 2,159 2,624 1,994 2,474

16. Debtors – amounts falling due within one year

Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Trade debtors 4,279 4,544 2,567 2,524 Inter-company - - 2,072 1,478 Other debtors 1,629 994 1,309 847 Prepayments and accrued Income 6,341 6,929 5,500 5,734 Total 12,249 12,467 11,448 10,583

The Group has included £4,178,000 (2010: £4,615,000) within accrued income representing the value of legacies deemed receivable in line with accounting policy 1.5. The Group has been notified of further legacies amounting to £13,724,000 (2010: £13,989,000), which have not been recognised as income at 31 March 2011 and these will be included in future periods. 17. Debtors – amounts falling due after one year

Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Other debtors 75 200 75 200 Total 75 200 75 200

18. Creditors – amounts due within one year

Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Trade creditors 2,634 2,558 2,247 2,107 Bank overdraft 2 50 2 25 Net obligations under finance leases 233 520 233 520 Taxes and social security costs 1,492 1,620 1,042 1,117 Intercompany Accounts - - 273 298 Other creditors 1,423 1,214 1,180 862 Accruals 5,628 5,101 5,044 4,388 Deferred income – all utilised in the year 1,594 1,862 519 430 Total 13,006 12,925 10,540 9,747

75 76 19. Creditors – amounts due after more than one year

Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000 Deferred income - 20 - 20 Net obligations under finance leases are payable as follows Between one and two years - 232 - 232 Between two and five years - - - - Net obligations under finance loan is payable as follows Between one and two years 2,138 21 2,114 - Between two and five years 2,560 10,031 2,536 10,000 More than five years 16,809 176 16,486 - Total 21,507 10,480 21,136 10,252

RNIB has entered into 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. The facility was reduced on 29 November 2010 from £25million to £23million. Interest is charged at 0.85 per cent above the three-month LIBOR rate. For 90 per cent of the loan amount, RNIB has paid a premium of £113,500 to cap the interest rate at 5 per cent for the period 30 June 2009 to 30 December 2011 and this has been charged to the SOFA. At 31 March 2011 the amount owing on the revolving loan is £21.136million (2010: £10million). The loan is secured over the freehold property at Coventry. On the termination of the three-year revolving loan, RNIB has the option to convert the outstanding amount into a 25-year mortgage and again this will secured over the freehold property at Coventry. Interest is charged at 0.85 per cent above the three-month LIBOR rate. RNIB has entered into a swap with AIB under which for the period 30 December 2011 to 31 December 2026, the interest rate charged on 90 per cent of the outstanding loan amount is charged at a fixed rate of 5.05 per cent. Under clause 11.3 (Financial Undertakings) of the Facility 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 the 31st March 2011, with the amount outstanding at £21,136,000 the level of such reserves has to exceed £26,420,000 and the actual level of such reserves stands at £83,952,000. The Group creditors greater than one year includes £221,000 outstanding against a £250,000 loan from Unity Trust Bank plc provided to NTNM, secured by first charge on their National Recording Centre. It also includes £150,000 relating to freehold property owned by the Blind Society for North Tyneside Limited, which merged with Action in the year. 20. Group/Charity statement of funds

Designated 31 March Incoming Outgoing Transfers Gains 31 March 2010 resources resources 2011 £’000 £’000 £’000 £’000 £’000 £’000 Investment Fund 4,820 - 1,403 (35) - 3,382 RNIB Rushton School and 3,350 - 2,823 2,779 - 3,306 Children’s Home revenue shortfall reserve Mergers Fund 1,776 - 78 121 - 1,819 Service property and 581 - 725 (1,303) - (1,447) associated facilities development Information technology 127 - 144 215 - 198 infrastructure fund Repairs and maintenance 2 - 618 616 - - fund Net book value – Service 43,822 - 1,371 (38) - 42,413 Properties Net book value – Other fixed 1,370 - 569 838 - 1,639 assets Total designated – Group 55,848 - 7,731 3,193 - 51,310 and Charity

77 78 20. Group/Charity statement of funds (continued) Investment fund: The purpose is to fund major projects furthering the strategic business plan. The transfer represents the net planned release back to general funds of £35,000. RNIB Pears Centre for Specialist Learning revenue shortfall reserve: The purpose is to provide support to the RNIB Pears Centre for Specialist Learning service during the course of the reconstruction project. The transfer represents the partial reversal of temporary funding made to cover the construction phase of the project pending future finance loan receipts in prior years. Mergers fund: This designates funds 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, including the RNIB Pears Centre for Specialist Learning reconstruction, and funds to acquire capital equipment. The transfer comprises the £11,136,000 loan finance drawn to cover the construction project less the transfer back to the revenue shortfall reserve mentioned above, a £250,000 designation from the general fund for planned capital acquisitions and a transfer from restricted funds of £1,381,000. This is offset by additions to designated fixed assets of £11,621,000. The deficit balance relates to expenditure being incurred ahead of loan finance drawn, or donations received, in regard to the RNIB Pears Centre for Specialist Learning reconstruction. Information technology infrastructure fund: The purpose is to ensure that the information technology infrastructure is robust. The transfer represents a planned designation of £250,000 towards the fund offset by additions to designated fixed assets of £38,000. Repairs and maintenance fund: The purpose is to fund a rolling programme of regular property maintenance. The £1,366,000 transfer represents new designations of £1,054,000 to cover planned expenditure within this programme offset by additions to designated fixed assets of £438,000. Net book value – service properties: The purpose is to recognise the value, net of long term debt, of RNIB’s service properties that are unavailable to free reserves. Such fixed asset properties held in the associated charities are recognised within the restricted funds. The transfer comprises £10,390,000 additions to assets under construction, other additions amounting to £828,000, offset by disposals amounting to £121,000 and an increase in the long term debt of £11,136,000 regarding the redevelopment at the RNIB Pears Centre for Specialist Learning. Net book value – other fixed assets: The purpose is to recognise the value, net of long term debt, of RNIB’s other fixed assets that are unavailable to free reserves. Such other fixed assets held in the associated charities are recognised within the restricted funds. The transfer represents the net disposals of other fixed assets in the year. 20. Group/Charity statement of funds (continued)

Other unrestricted 31 March Incoming Outgoing Transfers Gains 31 March 2010 resources resources 2011 £’000 £’000 £’000 £’000 £’000 £’000 General – Charity 19,061 80,680 83,467 3,514 615 20,403 Pension reserve (9,164) 422 (1,343) - 9,122 1,723 Total other unrestricted 9,897 81,102 82,124 3,514 9,737 22,126 Total unrestricted – Charity 65,745 81,102 89,855 6,707 9,737 73,436 General – retained in subsidiaries - 29 29 - - - Total unrestricted – Group 65,745 81,131 89,884 6,707 9,737 73,436

Restricted 31 March Incoming Outgoing Transfers Gains 31 March 2010 resources resources 2011 £’000 £’000 £’000 £’000 £’000 £’000 Emma Nye fund welfare 675 118 115 - - 678 pensions Dr Duncan Leeds Bequest 40 44 33 - - 51 Elizabeth Eagle-Bott Memorial 97 25 31 - 1 92 Fund Opportunities for Volunteering 10 31 27 - - 14 Donations for specified 2,859 18,708 16,754 (1,312) - 3,501 equipment Action for Blind People - 78 78 - - - Glynn Vivian - 350 - - - 350 Donations for specific services 86 22 31 (6) - 71 Donations for specified capital 3 - 3 - - - projects – non-Community/New Opportunities Fund Sub total 3,770 19,376 17,072 (1,318) 1 4,757

79 80 20. Group/Charity statement of funds (continued) Restricted (continued) 31 March Incoming Outgoing Transfers Gains 31 March 2010 resources resources 2011 £’000 £’000 £’000 £’000 £’000 £’000 Fund and/or purpose b/f 3,770 19,376 17,072 (1,318) 1 4,757 National Lottery Big Lottery Fund British Braille Heritage - 3 3 - - - Children’s Low Vision - 63 49 - - 14 Enabler – Research Programme 5 89 76 - - 18 Eye Matter – Youth Forum 18 64 55 - - 27 Northern Ireland Future Jobs 66 (66) - - - - Gullane Street - 355 16 (394) - (55) Hillside Art Club - 10 1 - - 9 Life Skills Development for Young 11 16 27 - - - People Medivision - - 23 23 - - Recession Funding - 29 11 - - 18 Sub total 3,870 19,939 17,333 (1,689) 1 4,788 20. Group/Charity statement of funds (continued) Restricted (continued) 31 March Incoming Outgoing Transfers Gains 31 March 2010 resources resources 2011 £’000 £’000 £’000 £’000 £’000 £’000 Fund and/or purpose b/f 3,870 19,939 17,333 (1,689) 1 4,788 RNIB Cymru Developing Emotional - 43 25 - - 18 Wellbeing Through the Arts Lisburn in Focus 31 129 138 - - 22 Seed – Reaching Communities - 190 97 - - 93 Programme Social Enterprise Employment 39 (39) - - - - Development Vision for Life (3) 17 14 - - - Young People’s Forum – Scotland 39 - 39 - - - Sub total 3,976 20,279 17,646 (1,689) 1 4,921

81 82 20. Group/Charity statement of funds (continued) Restricted (continued) 31 March Incoming Outgoing Transfers Gains 31 March 2010 resources resources 2011 £’000 £’000 £’000 £’000 £’000 £’000 Fund and/or purpose b/f 3,976 20,279 17,646 (1,689) 1 4,921 Awards for All Scotland – Family Away Days - 14 8 - - 6 Northern Ireland – Visually 9 - 9 - - - Impaired Football Clubs Total restricted – Charity 3,985 20,293 17,663 (1,689) 1 4,927 Glynn Vivian - (8) 4 - - (12) Action 16,209 13,843 11,342 - 1,182 19,892 CVV 595 387 239 - 78 821 NTNM 150 635 604 - - 181 Total restricted – Group and 20,939 35,150 29,852 (1,689) 1,261 25,809 Charity

The restricted fund under Glynn Vivian is the new activity in the year referred to in notes 3 and 4. 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 2011 such deficit balances amounted to £218,000, of which £163,000 lies within “Donations for specified equipment”. Transfers amounting to £1,689,000 comprises £401,000 designated other fixed asset additions, £1,381,000 relating to projects where the initial expenditure is made under the designated development fund and £93,000 transferred from the general fund as a result of a review of outstanding restricted fund balances. The amounts included within “group” represents the net assets at fair value of the associated charities, other than those held within endowment funds. 20. Group/Charity statement of funds (continued) Endowment 31 March Incoming Outgoing Transfers Gains 31 March 2010 resources resources 2011 £’000 £’000 £’000 £’000 £’000 £’000 Sunshine 993 - 5 - 36 1,024 Emma Nye 2,592 - 11 - 95 2,676 General (inc. Bristol Blind Fund) 5,032 - 21 (5,018) 104 97 Eagle-Bott Memorial 520 - 3 - 19 536 Dr Duncan Leeds Bequest 973 - 4 - 36 1,005 GDC Rushton 154 - 1 - 3 156 Total endowment – Charity 10,264 - 45 (5,018) 293 5,494 Glynn Vivian - 30 - - 1 31 CVV 1 - - - - 1 Total endowment – Group and 10,265 30 45 (5,018) 294 5,526 Charity

General endowments are comprised of individual funds built up over many years and are not material on an individual basis, and for the purposes of disclosure have been amalgamated. Within the year a Section 75(a) resolution was passed, and approved by the Charity Commission, resolving that the value held within the General Endowments, excluding the Bristol Blind Fund, be released to General Funds on the grounds of economic usefulness.

83 84 20. Group/Charity statement of funds (continued) Summary 31 March Incoming Outgoing Transfers Gains 31 March 2010 resources resources 2011 £’000 £’000 £’000 £’000 £’000 £’000 Charity Unrestricted 65,745 81,102 89,855 6,707 9,737 73,436 Restricted 3,985 20,293 17,663 (1,689) 1 4,927 Endowment 10,264 - 45 (5,018) 293 5,494 Total 79,994 101,395 107,563 - 10,031 83,857 Group Unrestricted 65,745 81,131 89,884 6,707 9,737 73,436 Restricted 20,939 35,150 29,852 (1,689) 1,261 25,809 Endowment 10,265 30 45 (5,018) 294 5,526 Total 96,949 116,311 119,781 - 11,292 104,771 21. Analysis of net assets between funds

Group fund balances at 31 March 2011 Unrestricted Restricted Endowment Total are represented by: funds funds funds funds £’000 £’000 £’000 £’000 Tangible fixed assets 65,188 15,039 - 80,227 Investments 26,719 3,027 5,526 35,272 Net current assets 942 10,428 - 11,370 Long-term liabilities (21,136) (371) - (21,507) Defined Benefit Pension Scheme asset 1,723 (2,314) - (591) (liability) Total net assets 73,436 25,809 5,526 104,771

Charity fund balances at 31 March 2011 Unrestricted Restricted Endowment Total are represented by: funds funds funds funds £’000 £’000 £’000 £’000 Tangible fixed assets 65,188 - - 65,188 Investments 26,724 23 5,494 32,241 Net current assets 937 4,904 - 5,841 Long-term liabilities (21,136) - - (21,136) Defined Benefit Pension Scheme asset 1,723 - - 1,723 Total net assets 73,436 4,927 5,494 83,857

85 86 22. Pension Costs

The RNIB Group pension arrangements comprise those of RNIB and the associated charities, Action for Blind People (Action) and Cardiff Vales and Valleys (CVV). A summary of the movement in pension assets and liabilities for the Group’s defined benefit pension funds is shown below:

a. Summary of scheme costs and Amounts charged Actuarial gains Defined Benefit balances to SOFA Pension Scheme asset (liability) £’000 £’000 £’000 RNIB Charity 3,008 9,122 1,723 Action schemes one and three (89) 1,114 (1,558) CVV (130) 76 (756) Total defined benefit schemes 2,789 10,312 (591)

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 2009 by consulting Actuaries “Aon Hewitt”, using the projected unit method. The valuation disclosed that the market value of the Scheme’s assets (excluding Voluntary Contributions) at that date was £93.3 million, and that there was a deficit (calculated as the excess of the market value of the Scheme’s assets to the value of its past service ongoing liabilities, with allowance for future pay increases) of £28.6 million. Contributions by RNIB remain at 12 per cent of pensionable salaries. In addition RNIB and Action share the administrative costs of the scheme. The pension scheme trustees have considerd whether the measure used for inflation linked increases should be based on CPI rather than RPI. Given the scheme rules it has been decided to continue to use RPI. 22. Pension Costs (continued)

Following the merger with NLB, RNIB also offers the Pensions Trust’s Growth Plan. The Growth Plan is a multi employer pension plan under which contributions are invested in personal funds which have a capital guarantee and convert to a pension on retirement. No contributions are currently required into the Plan, but the Pensions Trust has advised that in the event of a withdrawal from the Plan, or in the event of the Pensions Trust being wound up, RNIB would have liability to pay a share of the accumulated deficit in the Plan, which is estimated at £713,493, based on the last updated actuarial valuation of the Plan as at 30 September 2010. The next full actuarial valuation will be carried out during 2011.

Action Action participates in four pension schemes and the assets of all the schemes are held separately from those of the charity. Scheme number one is the Action Defined Benefit Scheme which was offered through the Pensions Trust. The scheme has been closed to new members since 1 October 1997. On 8 July 2011 the government announced that, in future, the Consumer Prices Index (CPI) will be used to calculate the minimum pension increases for index-linked pensions rather than the Retail Prices Index (RPI) that has been used to date. CPI assumptions have been used for the 31 March 2011 liability estimate, which has resulted in a reduction in the expected liability compared with the previous RPI assumptions. Consequently, this reduction has been recognised as a change in actuarial assumption and has been recognised in the SOFA within actuarial gains/losses. Scheme number two is the Action Money Purchase Scheme and is open to existing and new employees. It is substantially all invested in the Pensions Trust Series 3 Scheme. The Board of the Pensions Trust has decided on actuarial advice not to apportion any share of the deficit to Growth Plan Series 3 and consequently no debt on employer currently arises from participation. 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. On 22 June 2010 the government announced that, in future, the Consumer Prices Index (CPI) will be used to calculate the minimum pension increases for index-linked public sector pensions rather than the Retail Prices Index (RPI) that has been used to date. CPI assumptions have been used for the 31 March 2011 liability estimate, which has resulted in a reduction in the expected liability compared with the previous RPI assumptions.

87 88 22. Pension Costs (continued) The fact that past statutory increases have been publicly linked to RPI means that the charity considers this to be a change in the future benefits payable to members rather than a change in actuarial inflation assumptions. Consequently, this reduction has been recognised as a negative past service cost, and the amount of £287,000 (2009/10: £nil) has been recognised within the Employee Benefits expense. 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 2011 produced a surplus, of which £4,000 is attributable to Action.

CVV CVV is a participant within the Cardiff and Vale of Glamorgan Pension Fund which is part of the Local Government Pension Scheme. 22. Pension Costs (continued)

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 CVV. Together these explain the Group’s pension costs.

b.Scheme assets and liabilities Expected RNIB Expected Associated Total asset return asset return charities % p.a. £’000 % p.a. £’000 £’000 2011 Scheme assets at fair value Equities 8.40 58,388 7.50-8.40 8,524 66,912 Corporate and Other Bonds 5.20 13,529 4.10-5.10 3,160 16,689 Fixed Interest Gilts - - 4.40 45 45 Index-linked Gilts 4.15 44,087 - - 44,087 Property (including unit trusts) 8.10 11,932 5.50-7.90 903 12,835 Cash and Other (including net 4.30 8,656 0.50-8.40 248 8,904 current assets) Total market value of Scheme 6.43 136,592 6.67-7.74 12,880 149,472 assets Present value of Scheme liabilities (134,869) (15,194) (150,063) Net Pension Scheme asset 1,723 (2,314) (591) (liabilities)

89 90 22. Pension Costs (continued)

b.Scheme assets and liabilities Expected RNIB Expected Associates Total (continued) asset return asset return % p.a. £’000 % p.a. £’000 £’000 2010 Scheme assets at fair value Equities 8.50 54,483 7.80-8.40 8,095 62,578 Corporate and Other Bonds 5.50 19,106 4.20-5.50 2,983 22,089 Fixed Interest Gilts - - 4.50 37 37 Index-linked Gilts 4.25 28,547 - - 28,547 Property (including unit trusts) 9.00 10,708 5.80-8.50 801 11,509 Cash and Other (including net 4.50 13,223 0.50-8.00 227 13,450 current assets) Total market value of Scheme 6.71 126,067 7.05-7.47 12,143 138,210 assets Present value of Scheme liabilities (135,231) (16,195) (151,426) Net Pension Scheme liabilities (9,164) (4,052) (13,216)

The assets of the Scheme are held with Legal and General plus BlackRock (for equities and bonds), and RREEF Limited (for property). 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. 22. Pension Costs (continued)

c. Analysis of charge to the SOFA RNIB Associated Total charities £’000 £’000 £’000 Year to 31 March 2011 Current service cost 3,917 254 4,171 Past service cost - (465) (465) Interest cost 7,516 861 8,377 Expected return on Scheme assets (7,938) (869) (8,807) Curtailment (487) - (487) Expense (income) recognised in SOFA 3,008 (219) 2,789 Year to 31 March 2010 Current service cost 2,740 174 2,914 Interest cost 6,611 796 7,407 Expected return on Scheme assets (5,790) (636) (6,426) Expense recognised in SOFA 3,561 334 3,895

The above service cost excludes any RNIB contributions paid to the defined contributions section of the Scheme. The Charity contributed to the Scheme at the rate of 17.6 per cent up until 30 June 2010, after which the rate fell to 12 per cent for the remainder of the year, of pensionable salaries. These rates include the cost of death in service insurance cover. During the year the Charity contributed £4,773,000 (2010: £4,051,000) to the scheme, and in the next year the Charity expects to contribute £4,402,000. In addition RNIB and Action share the administrative costs of the scheme. RNIB also makes contributions to a number of other pension schemes including the Teachers Pension Scheme. From 1 July 20101 under the salary sacrifice arrangement employer contributions and service cost include the member salary sacrifice contributions while member contributions are shown as nil. A redundancy exercise took place during the year resulting in a significant number of active members leaving service. This reduced the liabilities and the change has been allowed for as a curtailment gain in the charge to the SOFA.

91 92 22. Pension Costs (continued)

d. Analysis of actuarial gains and losses RNIB Associates Total £’000 £’000 £’000 Year to 31 March 2011 Experience gains on scheme assets 1,318 156 1,474 Experience gains on scheme liabilities 1,808 216 2,024 Gains on scheme liabilities arising out of changes to the 5,996 818 6,814 actuarial assumptions used Total actuarial gain 9,122 1,190 10,312 Year to 31 March 2010 Experience gains on scheme assets 25,208 2,288 27,496 Experience gains on scheme liabilities 4,879 167 5,046 Losses on scheme liabilities arising out of changes to the (31,630) (4,023) (35,653) actuarial assumptions used Total actuarial loss (1, 543) (1,568) (3,111) 22. Pension Costs (continued)

In accordance with the requirements of FRS17 the full actuarial valuation at 31 March 2009 was updated by Aon Hewitt at 31 March 2011. The principal assumptions they used for this purpose are summarised in the following table.

e. Actuarial assumptions 2011 2010 2011 2010 RNIB RNIB Associates Associates % % % % Discount rate 5.55 5.55 5.50 5.50 Inflation assumption (RPI) 3.50 3.75 3.40-3.60 3.50-3.80 Inflation assumption (CPI) - - 2.70-2.90 - Rate of increase in salaries 4.00 4.25 4.60-5.10 5.00-5.30 Rate of increase in pensions payments Pre 1 July 2010 – 5% p.a. cap 3.30 3.50 2.70-2.90 3.40-3.80 Post 30 June 2010 – 3% p.a. cap 2.50 N/A Rate of increase in deferred pensions Pre 1 July 2010 – 5% p.a. cap 3.50 3.75 2.70-3.40 3.50-3.80 Post 30 June 2010 – 3% p.a. cap 3.00 N/A Expected rate of return on scheme assets 6.43 6.71 6.67-7.74 7.05-7.47

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 29 years if they are male and for a further 30 years if they are female. For a member who retires in 2031 at age 60 the assumptions are that they will live on average for a further 31 years after retirement if they are male and for a further 32 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 21.3 to 23.8 years if they are male, and 23.6 to 26.6 years if they are female. For future Pensioners their life expectancy beyond the pensionable age of 65 ranges between 23.3 to 25.6 years if they are male and 25.5 to 28.6 years if they are female.

93 94 22. Pension Costs (continued)

f. Changes to the present value of the defined RNIB Associates Total benefit obligation £’000 £’000 £’000 As at 1 April 2009 101,557 12,056 113,613 Current service cost 2,740 174 2,914 Interest cost 6,611 796 7,407 Contributions by scheme participants 1,424 47 1,471 Actuarial loss on scheme liabilities 26,751 3,856 30,607 Net benefits paid out (3,852) (734) (4,586) As at 31 March 2010 135,231 16,195 151,426 Current service cost 3,917 254 4,171 Past service cost - (465) (465) Interest cost 7,516 861 8,377 Contributions by scheme participants 501 43 544 Actuarial gain on scheme liabilities (7,804) (1,034) (8,838) Net benefits paid out (4,005) (660) (4,665) Curtailment (487) - (487) As at 31 March 2011 134,869 15,194 150,063 22. Pension Costs (continued)

g. Changes to the fair value of scheme assets during RNIB Associates Total the year £’000 £’000 £’000 As at 1 April 2009 93,446 9,615 103,061 Expected return on scheme assets 5,790 636 6,426 Contributions by the employer 4,051 291 4,342 Contributions by scheme participants 1,424 47 1,471 Actuarial gain on scheme assets 25,208 2,288 27,496 Net benefits paid out (3,852) (734) (4,586) As at 31 March 2010 126,067 12,143 138,210 Expected return on scheme assets 7,938 869 8,807 Contributions by the employer 4,773 329 5,102 Contributions by scheme participants 501 43 544 Actuarial gain on scheme assets 1,318 156 1,474 Net benefits paid out (4,005) (660) (4,665) As at 31 March 2011 136,592 12,880 149,472 Actual return on scheme assets 2010 30,998 2,924 33,922 2011 9,256 1,025 10,281

95 96 22. Pension Costs (continued)

h. Historical scheme information 2011 2010 2009 2008 2007 £’000 £’000 £’000 £’000 £’000 RNIB Fair value of scheme assets 136,592 126,067 93,446 110,100 110,982 Defined benefit obligation (134,869) (135,231) (101,557) (92,177) (102,930) Surplus (deficit) in the scheme 1,723 (9,164) (8,111) 17,923 8,052 Gain (loss) on scheme assets 1,318 25,208 (25,316) (9,406) (1,435) Gain (loss) on scheme liabilities 7,804 (26,751) (2,531) 17,696 13,742 Total actuarial gain (loss) in year 9,122 (1,543) (27,847) 8,290 12,307 Cumulative amount of (loss) gain recognised (8,313) (17,435) (15,892) 11,955 3,665 in SOFA Associated charities Fair value of scheme assets 12,880 12,143 9,615 11,133 11,452 Defined benefit obligation (15,194) (16,195) (12,056) (11,867) (12,113) Deficit in the scheme (2,314) (4,052) (2,441) (734) (661) Gain (loss) on scheme assets 156 2,288 (3,132) (1,286) (66) Gain (loss) on scheme liabilities 1,034 (3,856) 125 (121) 258 Total actuarial gain (loss) in year 1,190 (1,568) (3,007) (1,407) 192 Cumulative amount of (loss) gain recognised (1,973) (3,163) (1,595) 1,412 2,819 in SOFA

The historical scheme information under “Associated charities” for 2009, 2008 and 2007 excludes some information relating to CVV as this was not available. 23. Group commitments a. Capital At the year-end, RNIB has outstanding commitments amounting to £3,581,000 (2010: £14,356,000) relating to the RNIB Pears Centre for Specialist Learning. At the year-end Action has outstanding commitments amounting to £320,000 (2010: £100,000). b. Operating leases At the year-end, the Group had the following annual commitments amounting to £1,567,000 (2010: £1,494,000) under non-cancellable operating leases.

2011 2010 £’000 £’000 Land and buildings Expiring within one year 157 80 Expiring between two and five years 751 597 Expiring after five years 380 546 Vehicles Expiring within one year 18 33 Expiring between two and five years 211 211 Equipment Expiring within one year 7 6 Expiring between two and five years 43 21 Total 1,567 1,494

97 98 24. Contingent liabilities

As at 31 March 2011 other than the Pensions Trust Growth Plan contingent liability disclosed in the “Pensions costs” note (Note 22) there are no other group or charity contingent liabilities (2010: £336,000).

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 RNIB Northern Ireland eye matter 63 Developing life skills for young people 21 Vision for life 17 Lisburn in focus 127 National Employment 150 Gullane Street/Access to Opportunities 354 Big Lottery Fund – Research Programme Enabler 88 Awards For All Scotland Family fun day 24 Colour Brush in Darkness Hillside Arts 10 European Social Fund Employment and Skills project 134 European Commission AEGIS Project 13 Special EU Programmes Sensory Engagement Programme 92 European Union (Lifelong Learning) Bifocal VI Project 9 Department for Education and Skills Embossed literature 200 Welsh Assembly Government Best practice on safe, inclusive and accessible buildings for 13 people with dementia and sight loss Best practice on safe, inclusive and accessible buildings for 13 people with learning disabilities and sight loss 25. Grants receivable (continued)

Source Purpose £’000 Welsh Assembly Government Children’s and Family Organisation Grants (CFOG) 49 Welsh Language Board To produce Welsh language audio books for children by 7 children. To establish forums across Wales and an on-line discussion group DCELLS The production of Welsh Language curriculum materials in 80 multi-media format Conwy Social Services Department Welfare Rights 14 Ceredigion Social Services Department Welfare Rights 26 Sight Support Welfare Rights – Newport/Caerphilly 19 RS MacDonald Trust and Robertson Trust Positive Steps 25 Guide Dogs For The Blind UK Vision Strategy Communications 30 Department of Health Opportunities for volunteering 96 Department of Health (Third Sector Finding Your Feet – The Next Steps 72 Investment) Centrica Here to help 120 Novartis Pharmaceuticals UK Ltd To support AMD awareness work 311 Funding Eye Clinic Liaison Officers throughout the UK 535 To Support Eye Health Work 5 Pfizer RNIB Cymru Eye Health Inequalities Project 43 Allergan Glaucoma Sibling Awareness Project 15 Retinal Patient Support Project 26 Alcon Understanding series leaflets 41

99 100 25. Grants receivable (continued)

Source Purpose £’000 Museums, Libraries & Archives MLA Culture Link Project 60 BBC Children in Need Children and family event 39 To provide programmes and activities for blind and partially 23 sighted children and their families Waterloo Foundation Support towards employment programme 22 Help a South Wales Child Transitions Guide 3 Standard Life Welfare Rights Officer 57 Margaret Murdoch Trust Service Development Officer – Insight 3 Hugh Fraser Foundation Service Development Officer – Insight 5 Bellahouston Bequest Fund Service Development Officer – Insight 1 Martin Connell Charity Fund Service Development Officer – Insight 2 Brian Mercer Charitable Trust National Library Services 15 Charles and Jane Allen Memorial Fund RNIB Scotland 6 Brownlie Charitable Trust RNIB Scotland 10 Lennox Wyfold Charitable Trust Vision 10 Kathleen Beryl Sleigh Charitable Trust RNIB General 10 Santander Charitable Trust RNIB Cymru 5 Patrick Frost Foundation Action 10 J P Charley (Discretionary) Action 17 Eveson Charitable Trust NTNM 8

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 relationships 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. Novartis Pharmaceuticals UK Ltd, Pfizer, Allergan and Alcon are all pharmaceutical companies. Who’s who at RNIB Patron, President and Honorary officers Chief Executive Officer and Vice-Presidents Chair Group Directors Patron l Kevin Carey MA (Cantab) MA (Kings Chief Executive Officer College, London) l HM The Queen l Lesley-Anne Alexander MSc

President Vice Chair Group Directors l Derek Child MA l His Grace the Duke of Westminster KG, Resources CB, OBE, TD, DL l Keith Hickey BSc MSc FCCA DChA Honorary Treasurer Vice Presidents l Terry Moody MA, BA Inclusive Society l Sir John Beckwith CBE l Fazilet Hadi BA l The Rt Hon David Blunkett MP l Richard Brewster Prevention and International Affairs l Professor Ian Bruce CBE l Stephen P King MBA, FCMI l Jeremy Bull l Haruhisa Handa Fundraising l Dr Euclid Herie l Eifron Hopper (Acting Director until May l Lady Joan Jarvis 2010) l Penny Lancaster-Stewart l Wanda Hamilton BA (Law) MInstF (from l Lord Low of Dalston CBE MA (Oxon) May 2010) l Sir Mike Rake l Dr Dermot Smurfit Supporting Independent Living l Rod Stewart CBE l Sally Harvey BA (Hons) l The Rt Hon Earl of Stockton l Sir Duncan Watson Chief Executive, Action for Blind People l Stephen Remington

101 102 Who’s who at RNIB (continued) Professional advisers Auditors Solicitors PricewaterhouseCoopers LLP Bates Wells & Braithwaite 7 More London Riverside 2-6 Cannon Street London London SE1 2RT EC4M 6YH

Actuaries and investment advisers AON Hewitt Ltd 6 More London Place London SE1 2DA

Bankers Royal Bank of Scotland plc Marlylebone Road and Harley Street Branch 10 Marylebone High Street London W1A 1FH

Property advisers Knight Frank 20 Hanover Square London W1S 1HZ Who’s who at RNIB (continued) Board of Trustees Members of the Board of Trustees are listed below. Full details of membership of committees are available from the Governance Unit at RNIB’s Judd Street address. Over three-quarters of the Board are blind or partially sighted. l Kevin Carey (Chair) l Anna Lawson (until December 2010) l Derek Child (Vice Chair) l John McNamee (until December 2010) l Terry Moody (Honorary Treasurer) l Richard Moore (from January 2011) l Margaret Bennett l Dr Mike Nussbaum (from May 2011) l Carol Borowski l John Ramm (until December 2010) l Lisa Charlton MBE l Tony Rucinski l James Cook JP l Paul Ryb (from January 2011) l Michael Crowther (until December 2010) l Robert Silbermann l Gareth Davies l Eleanor Southwood l Michael Dudgeon (from October 2010 to May 2011) l John Spence (until October 2010) l Heather Giles (from January 2011) l Alan Suttie l Cindy Godfrey-McKay (until March 2011) l Mike Townsend l Richard Godfrey-McKay (until December 2010) l Louise Wright l Vidar Hjardeng

Independent members of the Audit Committee l Nick Goddard l Frances Teague

103 104 Who’s who at RNIB (continued) UK Members’ Forum In 2010, our UK Assembly was replaced by the UK Members Forum, a new body designed to give 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 first met in March 2010, and 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 North West A number of former UK Assembly Members l Linda Bancroft were asked to join the UK Members’ Forum for South East East Midlands (from February 2011) a transitional period of two years (ending July l Kevin Deacon l Peter Bailey l Michelle Powell 2011). The Members are: l Jane Payne l Sophia Chandler (until February 2010) l Jill Allen-King MBE l Michael Radford l Chris Grethe l Anne Rigby l Timothy Bamber (until February 2011) South West l Colin Shuttleworth l Nancy Blaik MBE l Michael Dyke West Midlands North East l Felix Brenner l Christina Ellis l Paul Bryce l Jillian Grant l Peter Brown l Marie Freeman l Bhanumati Dhabi l Denise Ross l Derek Child (also a Trustee) l Mark Williams London l Doreen Tyler l Michael Crowther (also a Trustee until l Maggy Bower Wales (until July 2010) December 2010) l l l Patricia Donaghy Ian Jentle Frances (Faye) Jones Scotland l David Quigley MBE l Alistair Fielder l Margaret Cowie l Chris Malone l Maggie Harris East of England l David McKerral l Robert Teague l Andrew Millar MBE l Marian Knights l Ken Reid l l Marion Mansfield Yorkshire and the Humber Brian Payne Northern Ireland l l Diane Stedman l Donald Baron Fred Reid l Joe Kenny l (until July 2010) l Barbara Stephenson Alan Suttie (also a Trustee) l Paula Meenan (from July 2010) l Mike Townsend (also a Trustee) l Alan Owens l Peter Westwood I would like to make a donation of: Your support £10 £20 £50 Other (Please confirm how much) My card details: Give time. Without volunteers we couldn’t run our services. Type of card: Visa MasterCard Maestro Give money. Without financial support from donations and legacies Other (Please confirm) we simply couldn’t provide many of the products and services that help people find their life again. Card number Give your voice. Without active campaigners we could never get Issue number Signature changes made to health, social care, employment and benefits. Please call today on 0303 123 9999 to find out more or send your Start Date Expiry Date details to: RNIB, 105 Judd Street, London WC1H 9NE Cheques should be made payable to “RNIB Charity”. Please contact me about: Make your gift worth more at no extra cost to you! Making a regular gift Leaving a gift in your Will Are you a UK taxpayer? If so we can reclaim approximately 25p from the taxman for every £1 you give to RNIB RNIB Membership Volunteering through the Gift Aid scheme. Fundraising events Recycling for RNIB It’s simple – just let us know that you are a UK taxpayer and for every Products and publications Campaigning £1 you donate to RNIB in a financial year, you must have paid 25p in income or capital gains tax in the same financial year to qualify for Name Gift Aid. Address Yes! Gift Aid my donation. I am a UK taxpayer and I would like this donation, all donations I have made to RNIB in the four years prior to this year, and all donations I make in the future until I notify you Postcode otherwise, to be treated as Gift Aid donations. Email Data protection. The personal details you provide will be used solely by RNIB and our authorised agents for research purposes and to Please tick if you are happy to receive email and other electronic advise you of additional opportunities/news that we think may be of forms of communication from RNIB. interest. Please tick if you do not wish this to happen. 105 RNIB RNIB Northern Ireland 105 Judd Street 40 Linenhall Street London WC1H 9NE Belfast BT2 8BA t: 020 7388 1266 t: 028 9032 9373 RNIB Helpline

RNIB Cymru RNIB Scotland Trident Court 12–14 Hillside Crescent 0303 123 9999 East Moors Road Edinburgh Cardiff CF24 5TD EH7 5EA t: 02920 45 04 40 t: 0131 652 3140 [email protected]

We also produce annual reviews for RNIB, RNIB This report is available in print, braille and audio CD. Cymru, RNIB Northern Ireland and RNIB Scotland. To order contact the RNIB Helpline. For a copy call 0303 123 9999 or visit rnib.org.uk The latest RNIB annual report and accounts is 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. If you are sent a Word version of our report and accounts from a source you are unsure of, please refer to our website.

Follow us at

www.facebook.com/rnibuk www.youtube.com/rnibuk twitter.com/rnib

© RNIB July 2011 Registered charity number 226227 PR12341P