RNIB Group Annual Report and Accounts 2019/20 "Blind and Partially Sighted People Are at the Heart of RNIB and They Influence Everything We Do."

RNIB Group annual report and accounts 2019/20 "Blind and partially sighted people are at the heart of RNIB and they influence everything we do."

Contents

4 Welcome from our Chair, Eleanor Southwood 74 Independent Auditor’s report to Trustees of RNIB 6 Introduction from our Chief Executive, Matt Stringer 79 Group statement of financial activities for the year ended 31 March 2020 8 Trustees’ Report and Strategic Report 86 Group and RNIB balance sheets as at 10 Strategic priorities and impact: 31 March 2020 What we’ve achieved 88 Group cash flow statement for the year 12 RNIB’s Impact: Progress against our priorities ended 31 March 2020 20 Our main objectives for 2020/21 89 Notes to the cash flow statement 22 Working together 91 Notes to the financial statements for 30 Fundraising review the year ended 31 March 2020 34 Partnerships 161 Thank you to our supporters 36 Financial review 164 Who’s who at RNIB 44 Principal risks and uncertainties 164 References and administration 52 Structure, governance and leadership 164 Professional advisers 68 Statement of Trustees’ responsibilities 166 Contact details 70 Disclosure of information to auditors 72 Statement of public benefit

03 Welcome from our Chair, Eleanor Southwood

Welcome to RNIB’s annual report We started this journey not a We have made breakthroughs moment too soon. As coronavirus campaigning for an equal society. For It is with a mixture of pride and showed us, every organisation needs the first time, many blind and partially sadness that I present my last report to be flexible, agile and resilient sighted people were able to vote as RNIB Chair. In the following pages, if it is to successfully support its independently and in private in the you will hear how this 152-year-old community during such times. It also 2019 General Election. This was a result organisation has this year continued needs to listen to the people it is of our campaigning – fuelled by public its remarkable transformation to here to support; we reached out to – support – and saw the Government ensure it is properly equipped to and were approached by – blind and informing all Returning Officers that stand with blind and partially sighted partially sighted people, who in some magnifiers and mobile phone AI people through every challenge. cases were struggling even to get apps to “read” the ballot paper were You will also see how this work was access to essentials such as food and a reasonable adjustment under the completed against the backdrop medicine, as life changed overnight. Equality Act. of an ongoing Statutory Inquiry As the UK moved on from the by the Charity Commission. This initial coronavirus lockdown, blind But our priorities are not just about inquiry reported in June 2020 and and partially sighted people were changing things for the better outside we are profoundly sorry both to faced with even more challenges as RNIB. We want to involve more and the individuals affected and for the difficulties including social distancing more of the UK’s two million blind and failings identified in its report. We and street modifications became partially sighted people in our work as have made significant changes to more apparent. But, while facing the we expand our capability to engage, RNIB over the past two years and are coronavirus challenge, we knew we involve and understand the lived continuing to embed improvements had the benefits of a successful year, experience of sight loss. to ensure that these failings cannot both operationally and financially, be repeated. behind us. At the end of the last financial year we launched Connect Voices. This

04 "As I reach the end of my term, I can only feel pride in how RNIB is rising to meet today's and tomorrow's challenges."

new initiative gives blind and partially As we look to an uncertain future and partially sighted people, more sighted people a platform and an for the UK, I want to reflect on the than 150 years after our foundation. important role in our decision-making important changes to RNIB over the and helps us in our mission to create a last year. I also want to highlight So, yes, like many of us, I have world where there are no barriers for how important it has been that we experienced mixed emotions this people with sight loss. Connect Voices have kept our values – collaborative, year, but, as I reach the end of my has made a great start: 282 blind creative, inclusive and open – at front term as a Trustee, I can only feel and partially sighted people joined of mind. Many of those values are best pride in how RNIB is rising to meet online and have been involved with reflected by our generous supporters, the challenges of both today and 102 pieces of work. Locally, 103 people supporters like Keith Ainsworth – tomorrow. I leave looking forward to joined 13 committees across the UK. Morecambe’s much-loved “Sooty Man” seeing the organisation continue to This is particularly significant as blind – who sadly passed away on 8 March go from strength to strength. and partially sighted people are at 2020 after devoting so much of his the heart of RNIB and they influence life to raising more than half a million everything we do. pounds for RNIB.

Alongside this, within RNIB we have Our thoughts are with Keith’s family created a Customer Voice team, and friends and I want to let them bringing together our Research, know how much we appreciate all of Insight, and Involvement functions Keith’s efforts. to better articulate what it can be like to live with sight loss and to Indeed, I want to thank all our drive RNIB towards new ways of volunteers, staff and supporters for removing barriers. all their help in ensuring we are still here, fighting for the best for blind

05 Introduction from our Chief Executive, Matt Stringer

Last year, I had only just started at continued with our action plan to the “new normal” and the positive, RNIB by the time the annual report respond to the Charity Commission agile way we have responded. Many was in production, so I barely had Statutory Inquiry (see page 54). We of these changes may bring long- time to remark how we had an are truly sorry for the failings that term benefits as we evolve as an excellent foundation in place – in led to this inquiry and I want to add organisation. We have been actively terms of brand and strategy – for the my personal apologies to the families listening, of course, to our customers year ahead. Alongside our work to affected. Since the Inquiry opened, and so we have expanded and build on those foundations, we have we have worked tirelessly to address evolved our services and campaigns the root causes of the failings and to meet their new needs. With our many of these changes are reflected new, long-term strategic priorities in the progress you will read about in place (in box opposite), in what in this report. I believe they will quickly became an emergency deliver a more effective, more situation for many blind and partially relevant RNIB and we are already sighted people, we focused on the seeing their impact in our finances short-term needs. We addressed the and governance. unique challenges experienced by blind and partially sighted people Of course, I didn’t know that we during lockdown – ensuring access would end the year with most of to food supplies, stepping up to be the organisation working remotely the voice of the blind and partially and key services and staff, including sighted community with government our Eye Clinic Liaison Officers and campaigning tirelessly for critical (ECLOs), having to adapt to new information to be made available in ways of working. I am incredibly accessible formats. proud of how our staff adapted to

06 "By staying focused on our goals and the needs of our customers, RNIB will continue to progress."

Fundraising was also affected. All build on those strong foundations, of our face-to-face fundraising aligning our resources and efforts to Strategic priorities 2021/22 efforts were immediately put on those areas where they will make the From implementing new hold, which highlighted the need for biggest difference. infrastructure and systems to flexibility, innovation and diversity investing in our people, our in our revenue-generation. However, From implementing new infrastructure business strategy sets out the next thanks to our turnaround planning and systems to investing in our people, stage of RNIB’s transformation. and careful financial stewardship, we our business strategy sets out the ended the year in a healthy financial next stage of RNIB’s transformation. I Priority 1: Equip blind and state, as this report shows. And, while have no doubt that by staying focused partially sighted people to live we are still reacting to the changes on our goals and the needs of our the life they want to lead. prompted by coronavirus, I believe customers, that RNIB will continue to we have a strategy in place which progress positively on the next stage Priority 2: Innovate and improve allows us to focus on core priorities of its journey. conditions in society so that blind to ensure we stand side by side with and partially sighted people can blind and partially sighted people We must not lose that focus. live the life they want to lead. through every challenge ahead. Whatever challenges lie ahead. Priority 3: Transform RNIB to There are more than two million To our community, staff, volunteers, be a catalyst for change. A people living with sight loss in the supporters and partners, thank you. real focus on our customers, UK. Our efforts over the past year, We could not do this without you. continued support for our staff coupled with the strategies we have and volunteers and a tight grip in place for 2020/21, should put us on our cashflow will ensure that in a strong position to reach more of we can meet these priorities. those potential customers. We will

07 Trustees’ Report and Strategic Report

Highlights of 2019/20 • Our Connect Community grew to 63,983 people – 8 per cent Financial larger than last year • Total income: £95.9 million (2019: £106.3 million) • We sent more than 1.458 million Talking Books to customers – • Overall operating surplus before 6 per cent more than last year gains/losses and exceptional items: £3.1 million (2019: £3.8 • More than 23,000 learners million) benefited from Bookshare, our collection of educational books • Total voluntary income: – 54 per cent more than last year £51.9 million (2019: £59.4 million) • The new digital platform, • Reduction in expenditure: www.sightadvicefaq.org.uk, £9.6 million (2019: £10.0 million) launched with sector partners, received more than 262,273 • Total funds: £115.6 million unique visitors in its first year of (2019: £85.8 million) operation

Where we made a difference • As the role of our digital platforms • Nearly 47,960 patients were expanded, this year the RNIB supported by an RNIB ECLO – Helpline answered more than 30 per cent more than last year 215,465 calls – 7 per cent fewer than last year.

08 "We will stand side by side with blind and partially sighted people through every challenge ahead." Matt Stringer, Chief Executive, RNIB

09 Strategic priorities and impact: What we’ve achieved

RNIB’s vision is to create a world Our 2019/20 objectives: know how important it is to connect where there are no barriers for 1. Increase the reach and impact of with others. This priority is brought to people with sight loss. We want the Sight Loss Advice Service to life by our Connect Community and people to see differently. deliver a full range of information, 12 regional networks. We’ll create a advice and specialist support to platform that makes it easy for blind To help us change society for the people, whatever their individual and partially sighted people to talk, better, we established four priorities circumstances. share and support each other. based on the issues blind and partially sighted people tell us matter the most 2. To deliver innovative and Our 2019/20 objectives: and underpin our entire strategy. sustainable solutions to transform 1. Grow our online, telephone reading and retail services, and local network Connect Our clear focus is to equip blind and making sure people have access Community. partially sighted people to thrive. to the books, content and products they want. 2. Involve customers at the heart This is the second year we used these of RNIB’s decision-making. priorities to shape our work. 3. Conclude our review of establishment-based services and 3. Work with partners to transform Priority 1: Equip blind and put in place an action plan based the sight loss charity sector. partially sighted people to thrive on our conclusions. Our support and advice will equip Priority 3: Change society blind and partially sighted people, and Priority 2: Connect our We’ll do everything we can to anyone who cares about sight loss, so community increase the public’s understanding they can live the life they want to lead. We recognise the power of of sight loss and remove the barriers We provide services, information and togetherness in making sure our to equal participation in society. We’ll advice to everyone who needs it. collective voice is heard. We also do this by influencing political and

10 “The RNIB’s Slight Loss Advice Service really helped me to regain self-confidence through their counselling, particularly when I was going through the transition from being partially sighted to being registered blind.” Roger, Hertfordshire

business decision makers and helping Priority 4: Make RNIB fit for workforce with a culture of the public to understand more about our purpose accountability, performance and sight loss. By developing a customer-centred, recognition, making it easier for knowledge-based and agile colleagues and volunteers to focus Our 2019/20 objectives: organisation that puts accountability on what matters most to deliver • Show the public what it really and empowerment at the heart of our priorities. means to have sight loss in its culture. 2019/20. • Embed a culture of quality and Our 2019/20 objectives: compliance. • Raise awareness of RNIB, what we • Diversify and make RNIB's income do and what we stand for. portfolio sustainable.

• Develop a clear framework for • Continue to put the charity on a change, focused on campaigning sustainable financial footing with on the issues that have the biggest capacity to withstand risk and impact on the lives of blind and maximise the use of our financial partially sighted people. resources. Continue our financial 30% turnaround and embed those Rise in patients • Continue to innovate and develop principles as “business as usual”. supported by new solutions to help blind and RNIB ECLOs partially sighted people participate • Renew our infrastructure to this year in society on an equal basis. deliver more cost-effective and sustainable ways of working, including sharing knowledge more efficiently. Inspire a diverse

11 “The RNIB Helpline has been really useful for information and advice. RNIB’s Impact: It's great to know there's someone Progress against knowledgeable and helpful just on our priorities the end of the phone.” Sarah, London

RNIB’s impact is increasing in line with everything fully. And they made me • We have established 12 new RNIB our business strategy, supporting feel empowered and in control of the ECLO (Eye Clinic Liaison Officer) more blind and partially sighted situation by supporting me rather than sites this year and helped 47,960 people. This year, we are publishing a doing it all for me.” Tafsila, Cardiff patients and 15,426 relatives, or separate Impact Report including case carers, in total. Additionally, 94 studies and further insight. For more • The Sight Loss Advice Service per cent of patients (compared details, please request a copy of the delivered information, advice to 93 per cent last year) felt RNIB Impact Report 2019/2020. and specialist support to 26,113 “well” or “very well informed” blind and partially sighted people about the support available after Priority 1 impacts: Equipping and 5,726 friends, family, carers interacting with an ECLO. Also, 58 blind and partially sighted and professionals this year. 7,282 per cent (up from 52 per cent last people to thrive benefits-related cases were year) of patients felt they had a “I initially phoned them to speak to opened; 1,312 for tax-related better understanding of their eye them about Marriage Allowance. issues; 1,041 for registration-related condition. During the call, RNIB Benefits Service enquiries. made me aware of Blind Person’s • Our Eye Health team supported Allowance. I’d never even heard of it • Helpline: Our advisers answered 2,842 beneficiaries, including before. RNIB talked me through both 215,465 calls and 30,480 emails. people with sight loss, their friends Allowances and then supported me More than three quarters of and relatives. to talk to the Tax Office… I found customers (88 per cent) felt that all this approach so supportive. RNIB of their needs had been listened • We concluded a review of our didn’t just give me information and to and understood by the helpline establishment-based services and send me on my way. Nor did they which meant they were getting decided to transfer our three older take over. Instead, they made me feel access to the books, content and people’s care homes, two schools informed by taking the time to explain products they required. and one college to specialist

12 providers. RNIB Three Spires Dolphin Guide… which stopped me Our advisers answered Academy transferred to the Thrive feeling isolated at home and meant Partnership just after year-end (1 I could call my friends and family.” April 2020) and new providers were Andrew, Rotherham 215,465 selected for Tate House, which was telephone calls due to transfer in Q1 2020/21, and RNIB Loughborough College. The rest of these transfers are expected to take place during 2020/21, except for Sunshine House School which will transfer to a new school being built by the Eden Academy in the next few years.

“Losing my sight was devastating. I felt like my life was over. I could no longer work, drive or go places with my friends, but thankfully I had access to an Eye Clinic Liaison Officer (ECLO) who gave me so much advice. She taught me tips and tricks to help me around the house and answered my family’s questions, to help them understand how to support me. The best thing she told me about was the

13 Priority 2 impacts: Connecting other, the wider community and our community all RNIB has to offer in services, “I started getting help • We’ve grown our regional network products and opportunities. and the community we serve from RNIB’s Talk directly from 61,000 (last year) • People with little, or no sight and Support service. to 63,983 by the end of this year. also played a significant part There were five other People with sight loss, their family, in designing pioneering work friends and carers meet face-to- with Guide Dogs and Thomas women in my support face or online to offer invaluable Pocklington Trust to better group. Some, like me, peer-to-peer support, share understand the broad community had children. There knowledge and to campaign for of people living with sight loss. Co- was such a range of the changes needed to help them producing an extensive survey has meet their aspirations. We have enabled us to build a much more experiences – people restructured the way we work with helpful picture of the experience all over the country our communities internally to boost and needs of blind and partially who had lost their sight communication and impact. sighted people across the UK. in different ways – but • This has laid the foundation for there was a real sense the next stage – Community of community.” Connection – which launches later Sarah, London in 2020 and brings people further into our service offer to ensure they get what they need, when they need it. It will better connect people with sight loss to each

14 15 Priority 3 impacts: Changing We are calling on the Northern The team also attended organised society Ireland Executive to follow suit on blindfold walks across the country • We have campaigned to ban this issue. and organised and attended local pavement parking as part of our hustings events. Following the work to clear the pavements from • Fuelled by public support, our election, we now have 116 MPs obstructions and make them accessible voting campaign saw the signed up to be RNIB Champions accessible to blind and partially Government informing all Returning in Parliament. sighted people. In October 2019, Officers that magnifiers and mobile the Transport (Scotland) Act 2019 phone AI apps to “read” the ballot • When the Northern Ireland was finally passed and as a result paper were likely to be a reasonable Assembly was restored in 2020, we of our campaigning the Act bans adjustment under the Equality Act. were ready with a call to action pavement and double parking in As a result, the 2019 General Election to politicians, policy makers and Scotland. Campaigning across the was, for many blind and partially partner organisations to join us in UK resulted in the Westminster sighted people, the first time they ending the inequalities faced by Government finally agreeing to were able to vote independently and blind and partially sighted people consult on banning pavement in private. in Northern Ireland. In February parking in England. 2020, we launched our Community • We met the challenge of a snap Engagement Report at Stormont • In Wales, after we supported a election, drafting and publishing showing how people living with partially sighted campaigner to RNIB manifestos for each of sight loss continue to face barriers petition the Welsh Assembly for the UK nations and creating a in key areas such as: transport, change in this area, and following campaign action for blind and accessible health information, the submission of the petition, a partially sighted people to write to receiving timely healthcare, access Welsh Government Taskforce was their local candidates, asking them to employment and general established to look at the issue. to become an RNIB Champion. equality of access to services.

16 Public fundraising and partnerships £47 million Net income delivered

Priority 4 impacts: Making RNIB critical non-financial targets, such implementing actions from the fit for purpose as the number of active regular Statutory Inquiry into RNIB by • Ensuring we can meet our donors, were still met thanks to the Charity Commission. We are priorities as well as possible, more effective campaigns and meeting all key milestones in the overall operating surplus efficiency savings. We are above delivering the Action Plan agreed before exceptional items for the target on the number of legacy- with the Charity Commission year was £3.1 million (2019: £3.8 giving enquiries and our new following independent review into million), with operating cash business pipeline for 2020/21. RNIB. A robust Policy Framework inflow of £11.0 million (2019: £11.9 was agreed by RNIB’s Board in million). Group expenditure has • RNIB has thoroughly reviewed November 2019 and we are well reduced by £9.4 million by making and strengthened its compliance, underway with a review of our careful reductions – mainly risk and assurance framework policies against this framework, through strong cost controls in the past year. We appointed ensuring that policies are reviewed and efficiencies. Continuing our a new Head of Compliance, in a timely way and approved at planned turnaround, this ensures Risk and Assurance who started the appropriate level. The Head of more money is better spent on in post in September 2019. A Compliance, Risk and Assurance services for blind and partially Risk Management Policy and is ensuring that all compliance sighted people. Framework was agreed by RNIB’s and risk work across the Group is Board in November 2019 and has coordinated with, and supports, • Public fundraising and been implemented. other work completed or that is in partnerships activities delivered a progress to address the findings of net income of £47 million. The net • We have completed a review of the Statutory Inquiry. income generated by Individual RNIB’s governance structures Giving activity was around £0.8 and procedures in the past million higher than budgeted while year, particularly as part of

17 • We are working with Crowe UK of regulatory compliance have • Our Critical Disaster Recovery LLP which is providing internal been included. Solution project was completed audit services to the Group, with before the financial year end a detailed annual internal audit • On safeguarding matters, we have and we are well underway with a plan agreed with our Audit and we have overhauled our training, review and refresh of our Business Risk Committee. Internal audit strengthened the team and Continuity Planning across the recommendations and other recruitment processes, and given Group. Progress made in this professional recommendations greater transparency across the area has been demonstrated made are robustly followed up organisation and in governance, through our robust response to on, with the Head of Compliance, meeting key milestones in the coronavirus outbreak and Risk and Assurance, ELT members implementing our Safeguarding lockdown, with our contingency and the Audit and Risk Committee Improvement Plan. plans proving effective in the holding individuals to account initial stages. We have worked to ensure they are addressed in • We are delivering effectively with Crowe UK LLP to consider a timely way, with appropriate in relation to Information coronavirus-related risks showing evidence retained. Governance and Information we have taken, and continue to Security, with controls in this area take, the appropriate action for • RNIB’s regulatory compliance strengthened through the work the ongoing mitigation of these monitoring and reporting has been of our Information Governance risks. strengthened and includes regular Group. We are improving tracking assessment across each of our through system improvements, for applicable regulatory compliance example, of mandatory training areas, with quarterly reporting to completed by RNIB individuals and our Audit and Risk Committee and contractors. Board. Improvements in the area

18 19 Our main objectives for 2020/21

To direct our resources and effort in Priority 1: Equip blind and Priority 3: Transform RNIB to be the most impactful ways, we have partially sighted people to a catalyst for change refined our priorities further and live the life they want to lead • Establish a leadership position as are concentrating on three for the • To increase information access the experts in the lived experience year ahead. and control, particularly digital, by of sight loss. addressing cost, confidence and The three priorities reflect customer capability at scale. • Make a bigger impact in needs, based on research and everything we do. consumer testing, our ambition • To enable more people to move to continue urging society and more quickly from diagnosis/sight • Diversify our income. institutions to appreciate the value deterioration to confidence through of Seeing Differently and embrace a more effective and digitally • Work to the highest of standards, diversity and inclusion. enabled sight loss pathway. fostering an agile, accountable and customer-focused culture. This also reflects our new Connection Priority 2: Innovate and improve proposition which will facilitate conditions in society so that blind As the coronavirus pandemic hit in pure connection rather than more and partially sighted people can March 2020, we developed a short- traditional community development live the life they want to lead term response plan that sits within and improve performance. • To build on the goodwill of society these priorities to ensure RNIB would to raise the understanding of sight be able to do as much as we could to The three priorities for RNIB are: loss in everyday life. support blind and partially sighted people during the crisis while not • To achieve more accessible, risking financial stability. inclusive and usable mainstream environments and solutions.

20 Community Connection Our regional network and community has grown to 63,983 people who we ensure benefit from being connected.

This growth has laid the foundation for the launch of Community Connection which will better connect people with sight loss to each other, the wider community and RNIB's services, products and opportunities.

13 committees of blind and partially sighted people guide our work via Connect Voices

21 Working together

RNIB relies on a wide range of people to achieve our goals.

Blind and partially sighted people are at the heart of RNIB, influencing everything we do.

We have implemented a range of initiatives and improvements to ensure our employees and volunteers feel motivated and that they are progressing as RNIB continues its mission.

Three of these key initiatives are: • Connect Voices: We launched the Connect Voices network at the end of the last financial year to give blind and partially sighted people outside the organisation a clear way to get involved with RNIB’s work, including user experience initiatives. It encourages staff and people with sight loss to collaborate and 282 blind and partially sighted people

22 We launched the Connect Voices network to give blind and partially sighted people a clear way to get involved with our work.

joined Connect Voices online and Our employees Feedback from the annual staff have been involved with 102 pieces Our employees sit at the heart engagement and volunteer surveys of work. Locally, 103 people joined 13 of everything we do and we are highlighted a number of other areas committees across the UK. fortunate to have a dedicated and to focus on including: highly-effective staff. To improve • We have created a new Customer the way we support them, we have • Leadership visibility and trust in Voice team, bringing together embarked on a process to improve leadership Research, Insight and Involvement our HR function. An HR review functions to provide a more in early 2019 revealed ineffective • Wellbeing and morale authentic expression of life with systems and inefficient processes. little, or no sight and drive RNIB Under the management of a new • Information and technology towards new solutions. In the People Leadership Team, we have coming year, we will focus on addressed many of these challenges The individual directorates developed increasing our capability to engage, over the past year, building a more- tailored plans to take these forward. involve and understand the lived efficient, customer-focused and experience of sight loss. modern HR function. Systematic We have restructured HR Operations, challenges were highlighted in the recruiting nine new staff members to • This year we have focused on how annual staff engagement survey the team. the lived experience of sight loss which showed that, while our staff can improve and enhance our have a much better understanding A strategic review of the HR recruitment processes. We co- of RNIB’s strategic direction, just over Information System, iTrent, identified designed materials, guidance, and half would recommend it as a place a number of areas where considerable processes for recruiting staff and to work. efficiencies could be made with better are systematically involving our use of the current system, customers in staff recruitment.

23 as well as new investment. We have and Inclusion Manager, who leads on RNIB workplace and in the services introduced more robust processes the implementation of D and I strategy. we deliver and we have started to which link recruitment and establish a BAME network for staff safeguarding (including references In 2019/20 we also introduced and volunteers. We have an ongoing and DBS checks). The upgraded Flexible Working policies, a Workplace commitment to do better and fight for system offers automated workflows Adjustment policy, a new Safer change. throughout the employee lifecycle: Recruitment policy, have updated the streamlining recruitment and Equal Opportunities policy and have Key initiatives: onboarding, employee development, introduced an Accessibility Assurance Human Resources performance management and panel. • Our non-financial benefits package departures. We will report on the for employees was enhanced with impact of these changes on staff in We also now have a D and I strategy in greater flexibility around annual the next annual report. place, supported by our Diversity and leave and the introduction of RNIB Inclusion Manager and fledgling staff Rewards which provides a variety The impact of these changes is networks. This has been reprioritised of shopping discounts from a wide shown in a monthly HR dashboard in response to Black Lives Matter range of retailers. to support regular performance where we stand in solidarity with Black reporting and provide the Directors communities all over the world, but • We have also prioritised internal and Trustees with regular insight into where we also recognise that we need communications: organisational health. to do much more. • The Chief Executive and Chair Diversity and Inclusion We have started by listening and having create monthly broadcasts to all We have created new Diversity and conversations, alongside improving staff giving updates on RNIB’s Inclusion roles including a Strategic our data in order in order to address activities, successes and strategic Lead for Accessibility and a Diversity racial inequalities both within the areas of focus.

24 RNIB has trained 17 Mental Health First Aiders this year

• Weekly bulletins are issued to all • We have introduced a talent • We trained 17 Mental Health First staff covering a wide range of mapping approach for all senior Aiders and are looking to double organisational updates. leaders, giving a clear overview our capacity of Mental Health First of succession lines and overall Aid Instructors next year. • Workplace, an internal social leadership capability. This will media platform, is also used feed into a new leadership • We have rolled out a new for more dynamic day-to- programme which supports talent performance management tool day information sharing and and encourages the skills and on our HR database to ensure increasing staff engagement behaviours needed for new and individual objectives are linked to and participation. emerging leaders. We recognise strategic priorities, allowing us to that we are working in a more measure our impact through our Organisational Development volatile world and our leaders activity. • We are changing our senior need to have the skills to address leadership group responsibilities that. • We sourced an e-learning provider and membership to boost strategic to support blended learning focus and delivery. • We have expanded our and to increase the reach of OD Organisational Development (OD) interventions and worked to • We are developing our leaders with a new e-learning strategy, ensure organisational compliance through a programme of increased interventions to support with mandatory training. continuous development, events, inclusion, mental health and leadership away days, clarity on wellbeing and capacity building leadership groups and a strategic across our staff. approach to talent management.

25 Pay Policy In setting overall pay levels for our staff, benchmarking using a wide variety of external roles and functions ensures that the pay scheme reflects market rates and ranges for each salary level. We consider the pay practice of other large charities within the UK supported by other high-quality information for specific levels or roles as appropriate.

We aim for a consistent and sustainable pay strategy that meets with the diverse requirements of RNIB.

Gender Pay Reporting Due to the coronavirus outbreak, the Government Equalities Office and the Equality and Human Rights Commissions have taken the decision to suspend enforcement of the gender pay gap deadlines for

26 Volunteer contribution equivalent £5.5 million

2019/20. After careful consideration, contribution was equivalent to more In December 2019, we approved a RNIB has elected to defer its than £5.5 million of resource. new Contribution and Participation reporting requirements for this year. strategy to support us to recognise, We received 842 volunteer enquiries value and enable us to better In our continuing commitment to via email or phone and 395 direct web support the many different ways demonstrate equality and fairness applications. We started 850 volunteer people give their time, skills, energy in recruitment, pay, promotion and roles with 68 per cent supported and experience. development we remain committed through our volunteer brokerage to the monitoring and addressing of service. Blind or partially sighted A working group made up of any gender pay gaps that may have people are in 19 per cent of these volunteers, some of whom are blind arisen. roles. We set up focus groups with or partially sighted, and a mix of customers and volunteers to explore staff from across RNIB created the Our volunteers how we promote opportunities more strategy. Many people volunteer their This year, 3,773 volunteers supported widely. Our target is to have 25 per time to many different areas of our us in 4,715 roles. After evaluating the cent of volunteers who are blind or work, the strategy acknowledges suitability of a range of roles to be partially sighted. Throughout the year, this and gives us the opportunity filled by volunteers and improving popular opportunities were in the to collaborate, join things up and our safeguarding processes, this Technology for Life service as well as simplify our approach, systems and was a 11.5 per cent drop on 2018/19 opportunities with a difference such as processes as much as possible. (4,263). those that were short-term or home- based. We signposted 102 enquiries to Our overall aims are: Currently, nearly a quarter (23.4 local societies – the top opportunities • To make it easier to be involved in per cent) of our volunteers have enquirers were looking for were one- the way you want to be. disclosed they are blind or partially to-one befriending and Studio Reading sighted. Our overall volunteer in Camden.

27 Our annual volunteering survey told us 89 per cent of volunteers would recommend volunteering with RNIB.

• To connect you with more • 77 per cent of volunteers feel that • We’ve updated volunteer induction opportunities to get involved, if you they feel supported in their role. materials including the Volunteer wish, by making it easier to hear This is 10 per cent higher than last Welcome Pack to ensure key about what’s on offer. year. As one told us: “My volunteer information is more prominent managers were so supportive and for volunteers and their managers • To help you see the difference you empowering. Not only did they and to enhance the induction make. help me fulfil my responsibilities in experience. my role, they pushed me to exceed Volunteering experience what I thought I was capable of.” • We’ve established a new reporting We strive to provide volunteers with a process to support teams in meaningful, good quality experience • 79 per cent of volunteers feel that identifying, recognising and in their time at RNIB. they are valued for the time and celebrating volunteer milestones. effort they donate to RNIB, this is a We first launched our annual 4 per cent increase from last year. • We’ve created a new mailbox to volunteering survey in 2018. The 2019 enable volunteers to share feedback results told us: In response to feedback from the and ideas with the Volunteer survey, we have taken the following Council. The Volunteer Council are a • 89 per cent of volunteers would action: small group of volunteers who meet recommend volunteering with RNIB, to share ideas, discuss issues, make a 4 per cent increase from last year. • We’ve developed the Volunteering suggestions and find solutions with Recruitment Commitment to members of the Volunteering Team. • 81 per cent of volunteers feel they improve the communication are making a difference through and support experience during volunteering, a 2 per cent increase the recruitment journey for from last year. new volunteers.

28 Fundraising priorities Our three priorities are to increase alignment between fundraising activities and our strategy; to diversify our income generation portfolio; and to increase the relevance of our fundraising offers, communications and products to supporters and potential supporters.

£51.9m total voluntary income raised by our supporters

29 Fundraising review

Thank you to all the many individuals, companies, trusts, foundations, funders and public bodies that have supported us this year and made our work possible.

With the help of our many supporters, we raised £51.9 million this year (gross voluntary income) to fund the essential programmes and services which provide a lifeline for blind and partially sighted people throughout their sight loss journey. This represents 54 per cent of RNIB income.

The main part of this (£32.7 million) came from gifts from supporters who thoughtfully remembered us in their Will (Legacies) and from Individual Giving activity (£19.2 million), including RNIB’s weekly lottery programme, other regular gifts, a well-established raffle programme and responses to direct appeals.

30 This is a wonderful testament to our strategy. It has also highlighted This year, we have made progress with cause and provides much-needed the need to continue evolving each of these priorities and included funds to continue with our vital our voluntary income portfolio to an integrated fundraising and brand work – both now and in the years to mitigate risk. Christmas campaign, revised cases for come. support and increased engagement Our strategic fundraising with existing and potential high value This year, the total legacy income priorities remain. They are: donors and partners. received – and the proportion of • To increase alignment between voluntary income that came from fundraising activities and our Our fundraising product development our legacy income – was significantly strategy. process is driving diversification of the lower than in recent years. This drop overall fundraising programme. It is was primarily caused by external • To diversify our income generation supported by an asset audit, product factors (including nationwide delays portfolio. portfolio review and various audience in the statutory processing of grants understanding projects. of probate and the start of the • To increase the relevance of our coronavirus pandemic) which delayed fundraising offers, communications Fundraising controls the process of executing Wills. and products to supporters and and regulation potential supporters. Like all charities, our fundraising The impact of reduced legacy income success depends on maintaining the on the total voluntary income Our priorities and activities are trust of donors and the public. We received, together with the need to underpinned by a commitment have a number of controls in place pause certain forms of fundraising to excellence and we review our to ensure our fundraising remains activity in response to the March practices on an ongoing basis to ethical, transparent and compliant lockdown in the UK, demonstrated ensure compliance with all relevant with both current regulation and the value of our long-term fundraising codes and regulations. public expectation.

31 Our Board of Trustees plays an active in fundraising practice and continue We hold these agencies to the same role in our fundraising activities. We to work closely with both bodies to high standards that we expect of our have an Income and Partnerships raise the quality of fundraising across in-house fundraisers. We regularly Committee to evaluate fundraising the wider sector. carry out mystery shopping, call performance and ensure fundraising monitoring and other quality checks activity operates in line with Our lottery and raffle activities on all their activities. regulatory requirements and best are managed under our Gambling practice. Commission licences which not All our third-party agencies are only ensure we meet our legal required contractually to follow In addition, our Audit and Risk requirements, but also enable us to the Codes of Conduct and Codes Committee provides independent provide the necessary protections for of Fundraising Practice put in place scrutiny of fundraising control and our supporters. by the Fundraising Regulator, The regulation through regular reviews Chartered Institute of Fundraising from our internal auditors. Use of agencies and third parties and the Charity Commission. Working with external agencies, RNIB’s Ethical Fundraising Policy which fundraise on our behalf, is a Vulnerable people ensures we consider the wider vital part of our fundraising strategy. We have a Vulnerable People Policy implications of who we accept gifts These agencies are contracted to in place to protect people who may from or work in partnership with. carry out a range of fundraising be in vulnerable circumstances. All activities including door-to- our staff are aware of this policy Through our voluntary registration door, telephone and private site and are trained in how to identify a with the Fundraising Regulator fundraising, helping us reach as person in vulnerable circumstances and membership of the Chartered many people as possible in a cost- and the actions they should take. All Institute of Fundraising, we are effective way. our third-party agencies are required committed to the highest standards to adhere to this policy.

32 Our commitment Complaints We remain absolutely committed to We take all complaints seriously, Total secure volume income continually improving the standards monitor them closely and report on we achieve with our relationships them regularly. We respond to each with supporters and the public. complaint within two working days. £5.9 million We ensure that anyone involved in A rise of £0.7m in our fundraising activities is aware The number of fundraising commercial income of our requirement to live by our complaints we received Fundraising Promise: during 2019/20 totalled 442 (2019: 608). This 27 per cent • We are committed to high reduction in complaints has been standards achieved despite an increase in Individual Giving activity and the • We are honest and open launch of new fundraising events • We are clear such as the Double Dash. • We are respectful • We are fair and reasonable • We are accountable

33 Partnerships

The time and expertise provided Our commercial partners by our partnerships allows us to Our commercial income objectives optimise our services and innovate were almost all met with the most our ways of working. critical performance measure: total secure volume income – exceeding We are especially thankful to the original target of £5.2 million partner with organisations who by £0.7 million. Of particular note, share our vision for a world where User Experience Consultancy income blind and partially sighted people exceeded the original target of can participate equally. By adding £66,000 by more than 165 per cent their voice to ours, they enable us while the studio income target of to achieve much greater impact in £480,000 was exceeded by more raising awareness of sight loss and than 8 per cent. improving access to employment for blind and partially sighted people.

34 35 Financial review

Overview of our financial performance and position We have continued strengthening our finances this year. RNIB Group’s overall operating surplus before loss on investments and exceptional items for the year was £3.1 million (2019: £3.8 million), with operating cash inflow of £9.6 million (2019: £11.9 million). We have achieved this through maintaining our strong cost controls and focus on efficiency.

In addition, we have almost eliminated reliance on bank debt, partly using proceeds from property transactions to repay £19.9 million of financing.

After investment valuation losses (£0.5 million), net income from exceptional items (£5.6 million) and actuarial gain on defined benefit pension scheme (£21.6 million), the total net increase in funds was £29.8 million (2019: £6.1 million).

36 £22.8m Our trading income from fundraising raffles and lotteries and more, grew from £21.3m last year

Exceptional items included in the Income Income generation is a critical SoFA amounting to £5.6 million In 2019/20, RNIB Group income was aspect of delivering against our comprise of income of £5.8 million £95.9 million (2019: £106.3 million). strategy, so we will continue to invest relating to the profit share in respect This £10.4 million reduction mainly carefully and innovate to maximise of the Redhill land and buildings resulted from a £8.8 million drop in opportunities while minimising risk. sale and development agreement legacy income, caused by nationwide with Countryside Properties (UK) delays in the statutory processing Limited following the transfer of of grants of probate and the initial the land relating to the first two impact of coronavirus on the development phases in September processing of estates in February and 2019. In addition, £0.3 million March 2020. relates to income received from the Thrives Education partnership in Partly offsetting this, we were respect of the transfer of the RNIB delighted that our trading income – Specialist Learning Trust. These are generated through our fundraising offset by £0.5 million relating to an raffles and lotteries, commercial impairment provision in respect of transcription, retail products and the write down of the property at consultancy – grew to £22.8 million Jones Court, Cardiff. These have been (2019: £21.3 million). accounted for as exceptional items as they fall outside of the charity’s Donations increased slightly to £19.2 ordinary activities, are abnormal in million (2019: £18.0 million), boosted their nature and are not expected by a year in which we increased our to recur. long-term investment in fundraising.

37 We invested £52 million in our services equipping blind and partially sighted people to thrive

Expenditure central to our long-term strategy Subsidiary entities Group charitable expenditure has and we will continue to invest more RNIB had four active operational been split this year to reflect new going forward. subsidiary charities during the strategic priorities. The prior year has year: RNIB Charity, RNIB Specialist been reclassified to match. Priority 4: Make RNIB fit for our Learning Trust, Cardiff Institute for purpose the Blind (trading as Sight Life) and Priority 1: Equip blind and To ensure the ongoing sustainability BucksVision. Together, these four partially sighted people to thrive of RNIB, we invested 16 per cent entities contributed an income of Our main focus of charitable of group expenditure (2019: 11 per £16.2 million (2019: £22.9 million) resources, in which we invested £52.0 cent) on raising funds, a significant across the year, almost all of which million (2019: £66.2 million) – of proportion of which will generate related to charitable activities. which £21.7 million related to our returns across future years. National Sight Loss Advice Service, In addition, the four active trading £20.1 million our regulated services Group expenditure as a whole fell by entities of the Group (RNIB Enterprises and £10.2 million other services. £9.5 million to £92.9 million (2019: Limited, RNIB Services Limited and, £102.4 million) thanks mainly to our in their first full year of trading, RNIB Priority 2: Connect our stronger focus on core activities. Direct Services Lottery and RNIB Feel community Good Friday) contributed £5.6 million To grow our vital connections with the A full analysis of group expenditure (2019: £3.5 million) to the RNIB Group communities we serve, we invested is shown in note 4 on page 108. The through Gift Aid and share of profit. £2.8 million (2019: £3.4 million). allocation of support costs is shown in note 5 on page 110. The full results of all subsidiary Priority 3: Change society entities are shown on page 99. We invested £6.1 million in the year (2019: £5.7 million). This priority is

38 Balance sheet and cash flow Pensions Overall, net assets including pension “The RNIB’s Slight 31 March 2020 represents the assets have increased from £85.8 next triennial date for the main million to £115.6 million, as explained Loss Advice Service RNIB Retirement Benefits Scheme above. really helped me (RNIBRBS) – a defined benefit to regain self- scheme. As at 31 March 2017, a £14.1 With the sale of the RNIB Pears Centre confidence through million technical provisions deficit and depreciation, partly offset by was agreed with scheme Trustees, in one-off revaluations, tangible assets their counselling, remedy of which a £2.5 million per have been reduced by £12.2 million to particularly when I annum deficit repair contribution £56.0 million. was going through plan was agreed. Driven by the operating surplus the transition from As at 31 March 2020, the financial and sale of property, we were able being partially sighted statements show a total surplus to repay £19.9 million of external to being registered pension reserve (as determined financing and as a result, cash by the FRS102 accounting basis Roger, Hertfordshire decreased from £14.4 million to £11.1 blind.” approach) of £23.0 million. This million. mainly resulted from a £21.6 million actuarial gain in the year, caused by As part of our cash management, a sharp increase in the prescribed we continue to improve our working discount rate as determined by capital management, with trade market movements in yields of AA- debtors reducing from £3.6 million to rated corporate bonds at the end of £2.4 million. 2019/20.

39 A similar outcome is not anticipated Reserves policy with respect to the 31 March 2020 In general terms, a pension RNIB’s reserves policy is reviewed triennial valuation due to the scheme surplus is said to annually and includes both a different methodology required exist when the actuarially- liquidity (which has primacy) and free when valuing pension assets, for determined value of the reserves measure. This is to reinforce example, the discount rate for scheme's assets exceeds our organisational focus on cash the technical provisions basis on the value of the scheme's management and effectively manage which this is determined is set by liabilities i.e. there is a surplus risk and financial sustainability in the government bond yields, as opposed amount of money/assets event of an unexpected reduction of to AA-rated corporate bonds and needed to cover current and income. the need for the trustees to exercise future monthly obligations. prudence when assessing ability to The March 2020 financial Liquidity is defined as free cash – meet future payment obligations. statements for the RNIB plus available financing facilities pension scheme shows a – and reduces this by the value of A full analysis of pensions valuations surplus reserve of £23 million. restricted funds to ensure these and costs is shown on page 143. funds are appropriately ring-fenced. A pension scheme deficit exists when the actuarially- Free reserves exclude restricted determined value of the funds and designated funds, which scheme's liabilities exceeds include the net book value of land the value of the scheme's and buildings occupied by RNIB assets, i.e. where the scheme services and activities. does not have enough money/ assets to meet its obligations.

40 RNIB's finances were in a sound position when the financial impact of the coronavirus started to take effect.

The assessment of free reserves reduced despite the operating Impact of the coronavirus excludes any surplus or deficit surplus generated, mainly due to and going concern reported on the pension scheme. the repayment of bank financing Our financial sustainability has (totalling £19.9 million) being in transformed over the last few years The required liquidity and free excess of proceeds from property thanks to a strong focus on cash and reserves levels are predominantly disposal (£10.0 million). cost control, putting RNIB’s finances determined by a risk weighted in a sound position when the assessment of income streams. It is The liquidity surplus of £3.3 million financial impact of the coronavirus correspondingly calculated annually was supported by an undrawn £15.0 started to take effect in March 2020. and as a result, Trustees wish to million revolving credit facility (RCF), operate within a range of £12.7 which had been intended to be Through March and April, we million – £19.0 million of liquidity gradually cancelled during 2020/21 modelled a range of forecast and between £25.3 million – £38.0 before expiry in June 2021. The financial outcomes and prepared million for free reserves based on financial impact of coronavirus has a set of mitigations (including analysis of risk undertaken as part of meant that this prudent position utilisation of the Coronavirus Job the 2020/21 budget setting process. with respect to liquidity was highly Retention Scheme), resulting in beneficial. a liquidity plan that has been At 31 March 2020, liquidity stood at implemented effectively. £22.3 million (2019: £16.9 million), so The free reserves shortfall is planned slightly above the target range. Free to be remedied in 2020/21, subject to As a result of this preparation and reserves were £25.7 million (2019: the financial impact of coronavirus the planning and hard work of our £32.8 million), marginally above (as discussed below). staff and volunteers, RNIB’s finances target minimum, albeit as described have not materially weakened since above, liquidity considerations 31 March 2020. have primacy. Free reserves

41 Overall, our services have continued foreseeable future. These accounts to be delivered, albeit in different have therefore been prepared on a ways when face to face has not been going concern basis. possible. Careful cost management and mitigations have largely offset Investment policy and the impact of reduced income performance which has been most significant During the year, our only with legacy income due to external investments related to endowment delays in the processing of our funds which have strict controls over generous legators’ estates, but their utilisation. These investments has had an impact across all areas, are managed in accordance with especially Fundraising. our wider Investment and Treasury Management Policy, which sets an To further support the position, the objective for long-term objectives to £15 million revolving credit facility exceed an inflation-based measure has recently been extended such (set at CPI +2.0%). that it will now be available until March 2022 instead of June 2021. At 31 March 2020, the unrealised loss on the endowment funds was Our up to date assessments of our £224,000 (2019: unrealised gain of financial position and three-year £43,000). The breakdown can be forecasts, with significant stress found on page 129. testing, give Trustees confidence the Charity will have adequate resources to continue to operate for the

42 43 Principal risks and uncertainties

Governance of the Group’s risk management ultimately sits with the Board of Trustees. Detailed consideration of risk is delegated to the Audit and Risk Committee. The Executive Leadership Team oversees the management of risks and reports to the Audit and Risk Committee quarterly.

Strategic management of risk is an integral part of RNIB’s decision- making processes and culture, supporting effective planning and evaluation of activities. Our risk management is focused on risks and opportunities associated with delivering the strategy and business plan.

44 Risk Primary mitigations Safeguarding, regulatory Implementing strong safeguarding improvement plans, developed following and operating risk external review of our compliance with safeguarding requirements and ensuring Risk of safeguarding incidents, all RNIB individuals and those we work with have received appropriate training particularly in education or care in safeguarding. settings, as well as other regulatory Implementation of a Risk Management Policy and Framework in the past year compliance risks. Ensuring that and new and strengthened policies, procedures and protocols in relation to we are able to respond to a major regulatory compliance. incident that impacts on RNIB. Working with our internal auditors and other providers of external assurance, ensuring recommendations are implemented in a timely fashion. Strengthened monitoring of and reporting on regulatory compliance. Review and strengthening of our business continuity framework. Finance Our risk-based and liquidity-focused reserves policy protects us against the Risk of unanticipated falls in impact of short-term volatility of cash flows. We closely monitor our forward voluntary income, reducing indicators, income against budgets and perform regular reforecasting. liquidity and capacity to effectively This ensures early recognition of longer-term challenges and any need deliver against plans. for course correction. In the past year specific consideration of finance risk has included the impact of Brexit and, since the year-end, the impact of coronavirus. Consideration of principal risks in relation to the coronavirus pandemic is outlined below.

45 The Board of Trustees is satisfied can only provide reasonable – but major risks have been identified not absolute – assurance that and processes for addressing major risks are being adequately them have been put in place. It is managed. Overall, we are confident recognised that control systems that our risk position remains within acceptable levels.

Risk Primary mitigations People • Our reward and benefits package is benchmarked against the sector and in line with an Risk of inability to find, approved pay policy. and keep, people with We monitor turnover, with exit interviews providing qualitative data. the right skills to deliver • We map the capability of our teams against requirements and continually consult and our plans. Also, fitness for refine communications to ensure all are aligned behind our plans. purpose of organisational • Focus in the past year has been specifically on strengthening our leadership with less culture. reliance on interims and ensuring clear accountability in relation to the performance of our people going forward. Strategic impact • Our plans for 2020/21, and beyond, move RNIB towards a better balance of reach, Risk that our strategy resources and impact. is not sufficiently clear • We will continually test our strategy to ensure maximum impact for blind and partially and innovative to deliver sighted people, with constant consideration of the risk of missed opportunities. against our ambitions. • Current focus is on being able to demonstrate our impact and on delivering innovatively. We believe the way we have adapted in relation to the coronavirus situation, and the lessons learnt, will enable us to improve our ways of working and strategic impact going forwards.

46 Risk Primary mitigations Technology, data and Implementation of a Digital Transformation Plan that is well underway to ensure all digital internal systems are fit for purpose, robust and reliable and support efficiency across the Risk of insufficient pace business. and depth of digital Work has focused on rationalising the technical estate and leveraging software as a transformation combined service within the Microsoft technology stack. with failure to resolve Attention is being paid to automation – based upon new generation integration issues of data quality methods. and integration, thereby All introductions and changes are scrutinised by a newly formed Technical Design failing to meet customer Authority which, among other things, helps to assure cyber-security. We are working expectations. Also, risk of towards achieving ISO27001. cyber-security breaches.

Risk management structure Executive Leadership Team – Specific consideration of risk Board of Trustees – ultimately oversees risk management and in relation to coronavirus responsible for governance of the reports to the Audit and Risk As part of RNIB’s strategic Group’s risk management. Committee quarterly. management of risk a robust assessment of risk in relation to the Audit and Risk Committee – considers coronavirus pandemic has been risk in detail and reports to Trustees. undertaken. A summary of this assessment is provided below.

47 Risk management structure Risk Primary mitigations Crisis response / Business Corporate Major Incident Response Team (Corporate MIRT), including all continuity planning Executive Leadership Team (ELT) members, initially led on responding to Risk that decision making during the coronavirus situation with detailed minutes and action points. Specific the pandemic period is not based data was reported to Corporate MIRT. A longer-term working group is on data and/or decisions are not now focused around all elements of being prepared as the UK eases out of documented. lockdown, reporting into the ELT. Risk that RNIB Board and Work with RNIB’s internal auditors and ELT to ensure potential impacts are Management fail to appropriately addressed with Audit and Risk Committee and Board of Trustees is kept assess the potential impact of informed. COVID-19 on our mission. Risk that business continuity Regular review and reporting to ELT and Audit and Risk Committee on business planning is not agile enough to continuity plans in relation to the pandemic and regular review of all Business address the fast-moving response Continuity Plans. to coronavirus.

Managing risk of change Risk that the design of interim Financial and other controls, in relation to staff working remotely considered. processes undermines controls. Where necessary controls have been strengthened. Risk that scenario consideration Corporate MIRT initially, and now ELT, lead on scenarios considered, ensuring and action planning is not necessary action plans in place, with regular reporting. adequate.

48 Risk Primary mitigations Risk to going concern from Regular updates on going concern to ELT, Audit and Risk Committee and coronavirus situation. Board, with a Cash Committee and liquidity plan in place in relation to the situation. Liquidity position remains healthy against reserves policy.

Data Risk in relation to any changes Subject to regular review by RNIB’s Information Governance team, reporting in how data is being secured and security matters and trends to ELT with appropriate action taken. managed, with increased working from home and lack of direct access to files.

People Risks to staff mental health and Corporate MIRT initially, and now a longer-term working group, lead with wellbeing. regular internal content and opportunities to connect put in place. A specific pulse survey conducted with follow on actions.

49 Risk Primary mitigations Risk in relation to how messages Robust internal communication plans implemented with ELT oversight. are being cascaded across teams during the coronavirus pandemic Risk of furloughed staff becoming Corporate MIRT initially, and now a longer-term working group, together with a disengaged or disenfranchised. Cash Committee, oversees furloughing, with oversight from Director of Finance Loss of capacity. and Director of People and Organisational Transformation.

Financial Risk that cash flow forecasting Cash Committee and liquidity plan is in place in relation to the coronavirus and fundraising forecasting is not pandemic, with regular consideration of fundraising forecasts. adequate. IT/Cyber Increased risk of cybercrime and Awareness programme put in place, as well as checking of existing robust fraud. controls and updating where necessary.

50 Risk Primary mitigations Remote access risks and software IT Team ensures robust controls are in place along with adequate licencing of licencing risks. software. P43 remote access risks: Microsoft Office 365 is a cornerstone of our remote access – an independent security review scored our implementation as being twice as good as average by sector and by size. Robust implementation of multi-factor authentication minimises remote access risks.

Supply chain Risk of failure within supply chains. Corporate MIRT initially, and more recently Executive Leadership Team (ELT), has oversight of this area, with procurement team providing necessary support. Personal Protective Equipment (PPE) has been a challenge to source, as recognised at national and international levels, but RNIB has been able to procure necessary PPE supplies to meet government requirements. Safeguarding Increased safeguarding risks. Raising awareness of the ongoing need to escalate any safeguarding concerns. The Director of Care, Education and Safeguarding, a member of the Executive Leadership Team (ELT), leads on safeguarding risks and reports to RNIB’s Regulated Services and Safeguarding Committee.

51 Structure, governance and leadership

How we are managed There are five main Board meetings performance and needs and identify RNIB is led by a Board of Trustees per year, in addition to which objectives. which has ultimate responsibility for Trustees attend other meetings what happens in the organisation. including regular Committee In December 2019, Trustee annual Practically, day-to-day management meetings, up to two Away Days each review meetings were carried out. of the organisation is delegated to year, a Business Plan and Budget Each Trustee was asked to complete the CEO and he in turn delegates to scrutiny session, training sessions a Board Effectiveness Review form members of the Executive Leadership (for example, annual Safeguarding and this formed the basis of a one- Team, comprising the Directors of Training, Diversity and Inclusion to-one meeting between each the nine departments within which Training etc) and other sessions as Trustee and the Chair to review all RNIB staff work. The Board retains necessary throughout the year. progress, set personal objectives and responsibility for approving RNIB’s identify training or support needs. vision, organisational strategy, Trustees are appointed for a term of Common themes coming out of annual plans and budgets, and key three years, renewable twice up to these meetings included: policies. It holds management to a maximum of nine years. Trustees account for delivery against the wishing to be reappointed for a • The need for a better system strategy and plans and also has new term of office will meet with for circulating Board papers. In a duty to reassure itself that the the Chair and Vice Chair to appraise response to this agreed need, organisation is operating within its their performance, obtaining RNIB is exploring Board paper policies and the law. The Board is feedback from other Trustees, and portals to identify a solution led by the Chair of Trustees, assisted make a recommendation to the which is accessible. by the Vice Chair and Honorary Board as to whether they should Treasurer. be appointed for a new term. In • A desire to strengthen personal addition, each Trustee meets with relationships with the newer the Chair annually to discuss their Trustees on the Board, have more

52 social time, and connect with • A desire for increased visits to 2020 we saw the departure of three colleagues in RNIB, bearing in mind RNIB services and to meet more long-serving members of the RNIB that Board members are spread stakeholders including staff and Board: Honorary Treasurer Alan across the country and often customers. RNIB put in place a Tinger and Trustees Mike Nussbaum need to join meetings remotely. programme of Trustee visits to and Heather Giles. We are very To address this, RNIB agreed to RNIB services (both regulated and grateful for their contribution to spread meetings throughout the unregulated) – as above, this has RNIB over many years and thank country rather than being London- been curtailed by the COVID-19 them for their service. centric, with meetings planned in pandemic, but a new programme of Cardiff, Birmingham, Edinburgh visits will be put in place once these The Board will always have one and Belfast. Social time was built can safely resume. RNIB has also Trustee with financial experience to into the meetings, some of which been consulting with customers to act as Honorary Treasurer (currently would involve an overnight stay. better understand what good Board Liz Walker, who took over from Unfortunately, the COVID-19 stakeholder engagement would look Alan Tinger in March 2020) and pandemic meant that planned like. This work is not yet complete, one Trustee with safeguarding meetings since March 2020 have but in 2021 we will plan a new experience to act as Safeguarding had to be held remotely, but once programme of Trustee meetings and Lead Trustee (Nora Colton). Other the situation improves the schedule other engagements with blind and than this, decisions about what skills of Trustee meetings will be reviewed. partially sighted stakeholders. to recruit would be taken based on The move to remote meetings has the outcome of a skills and diversity offered an opportunity to establish Trustee recruitment audit. To this end, an audit was working practices around these and The RNIB Board has undergone carried out in January 2020 and it ensure that those joining remotely significant change over the past 18 was agreed to seek new Trustees feel fully included. months, with seven new Trustees with one or more of the following appointed since March 2019. In March skills: strategic customer relationship

53 management; fundraising On 29 July 2020, Anna Tylor joined The statutory inquiry report was strategy and innovation; digital the Board as a Trustee of RNIB and based on three external reviews transformation; and investments. Chair-designate, to take office after commissioned by RNIB; the The Board also agreed on the need Eleanor steps down. Independent Review led by Hugh to increase the diversity of the Davies QC, which looked generally Board, with a focus at this stage on Charity Commission Statutory at events at RNIB Pears Centre and attracting younger candidates from Inquiry at safeguarding and governance a range of ethnic groups. It was In March 2018, the Charity within RNIB; and subsequently in- also agreed to seek Trustees with Commission for England and Wales depth reviews into governance lived experience of sight loss who opened a statutory inquiry into and safeguarding respectively. The can speak to our stakeholders with RNIB following Ofsted issuing a recommendations were adopted in authenticity and act as passionate notice to withdraw the registration full by the Board and formed the ambassadors for RNIB. Recruitment of RNIB Pears Centre, a school and basis of the Statutory Inquiry Action took place over the summer and home for blind and partially sighted Plan which was approved by the three new Trustees - Deborah children with complex health and Charity Commission in October 2019 Womack, Stephen Monaghan and learning needs. The statutory inquiry and is due to be fully implemented Alice Collins - joined the Board in report was published on 25 June by October 2020. September 2020. 2020. It found a lack of appropriate safeguarding systems at RNIB and In response to the statutory inquiry, In addition, RNIB’s Chair of Trustees attributed the failure to identify and over the last 20 months we have Eleanor Southwood is due to step deal with this to problems with the substantially strengthened our down at the end of her term of governance structure and a lack of leadership and governance at Trustee office in Autumn 2020, and RNIB oversight by management and the and Executive levels: has undertaken a recruitment Board of Trustees. process to identify a new Chair.

54 • As outlined above, we have oversight of all our activities. practice standards outlined in the recruited 10 new Trustees over the Details of these changes are Code and made recommendations past two years to strengthen our outlined below. for improvements. These Board. recommendations were adopted • A new Governance, Transformation in full by the Board and are now in • Our new permanent CEO Matt and Implementation Group (GTIG) the process of being implemented. Stringer joined us in May 2019 and has been established, chaired RNIB aims to carry out a review of we have further strengthened by our new Vice Chair. It has its governance against the Charity our Executive Leadership Team oversight of the effective delivery Governance Code in 2021 once this with the appointment of six new of transformational governance work is complete and report on Directors. We have also appointed including the Statutory Inquiry its application of the Code in the a new Head of Governance. Action Plan. 2020/21 annual report.

• We have a new Policy Framework • We launched a consultation with RNIB Board Committees and have reviewed and refreshed members to review and modernise Summary of new governance key policies and processes our Royal Charter and Bye-laws. structure within RNIB, June 2020 including our Professional Code The Board presently has eight of Behaviour. We have also Charity Governance Code Committees. Their purpose is to introduced a new Trustee Code of The external governance review scrutinise matters within their terms Conduct. undertaken in 2019 included a of reference in more detail than would detailed assessment of RNIB’s be possible for the whole Board to do • We have reviewed and tightened governance against the Charity within its meeting schedule. Matters our Committee structure including Governance Code. This revealed to be approved by the Board would agreeing new terms of reference to a number of areas where more usually be reviewed and endorsed by ensure Trustees have appropriate could be done to apply the best the relevant Committee prior to being

55 presented to the Board. carried out in 2019 which made 1. Previous RNIB Board Committee Each Committee has three Trustee recommendations about RNIB’s Structure – prior to November members, including a Trustee Committee structure. To implement 2019 Chair (other than the Audit and these recommendations, the Board RNIB had three Board Committees Risk Committee and the Regulated reviewed its Committee structure to and four Steering Groups. These Services and Safeguarding assess what Committees are needed were: Committee, which each have an to promote good governance independent Chair) and up to three while ensuring the structure works Committees Non-Trustee Committee Members. effectively and efficiently. The Board • Audit and Risk The Chairs of the Committees meet of RNIB approved the proposals in each quarter to discuss governance November 2019, after which the • People and ensure they work together in new structure including new terms a joined-up way. Each Committee of reference for all Committees was • Regulated Services and meets at least quarterly and some implemented. Safeguarding meet much more frequently than this. To augment the skills on the Steering Groups Board with additional expertise and • Business Change perspectives, five of the Committees have up to three non-Trustee • Transitions Committee members who are appointed for renewable terms of up • Relationships to two years. • Customer As part of the statutory inquiry, an external governance review was

56 Despite the distinction in name, all • The Governance and • Customer – customer the Committees and Steering Groups Transformation Implementation and prospective customer had delegated authority from the Group which oversees the planned engagement Board, other than the Transitions governance changes and delivery Steering Group, which had a purely of the statutory inquiry action plan • Governance and Transformation advisory function. and also has oversight of Business Implementation Group (GTIG) Change (taking over from the - charity governance and 2. Revised Committee Structure – Business Change Steering Group). implementation of the Statutory November 2019 to date Inquiry Action Plan Rather than retaining the distinction • Nominations Committee which between Committees and Steering leads on the appointment • Income and Partnerships Groups it has been decided that of Trustees and Non-Trustee (formally Relationships) – they should all be constituted as Committee Members and oversees fundraising activity Committees in order to streamline non-executive induction and and simplify governance structures. ongoing training. • Nominations – appointments to Two new Committees were created: the Board and its Committees, • The revised Committee structure and Trustee induction and is therefore as follows with a brief training summary of the primary purpose of each in terms of oversight and • People – staff and volunteer holding the executive to account: engagement; diversity and inclusion • Audit and Risk – finances, internal and external audit programme, and risk management

57 • Regulated Services and closely with other disability charities Martin Davidson (from 21 August Safeguarding (RSSC) – on issues of mutual concern. 2019), Vice Chair of Trustees, Chair safeguarding across the of GTIG, Chair of Nominations organisation and oversight of We deliver services in partnership Committee RNIB’s CQC or Ofsted-regulated with some local societies for blind services and partially sighted people and Ozzie Clarke-Binns, Chair of People some of our funding comes from Committee, Member of Audit • Transitions Programme – charities and trusts which support and Risk Committee, Member of property and business transfer our aims. Nominations Committee arrangements Our Board of Trustees and Non- Nora Colton (from 21 August 2019), Revised Terms of Reference for each Trustee Committee Members Board Safeguarding Lead Trustee, Committee were approved in February Member of RSSC, Member of Income 2020. These detail the key functions At 31 March 2020 Partnerships Committee and areas of oversight for each Eleanor Southwood, Chair of Committee, as well as highlighting Trustees, Chair of Income and Isabel Hunt, Member of Transitions where Committees must liaise, with or Partnerships Committee, Member of Programme Committee, Member of report, to other Committees on areas Transitions Programme Committee, Customer Committee of common interest and overlap. Member of People Committee, Member of Nominations Committee, Iain McAndrew, Chair of Customer Relationship with other charities Member of GTIG Committee We maintain close links with, and support the aims of, other Liz Walker (from 21 August 2019), RNIB Amanda Rowland (from 1 September organisations working with or for Honorary Treasurer, Member of Audit 2019), Chair of Transitions Programme people with sight loss. We also work and Risk Committee, Member of RSSC Committee, Member of GTIG

58 Other Trustees serving in 2019/20 Non-Trustee Members of Audit Sharron Lewis-James (appointed Heather Giles (to 31 March 2020), and Risk Committee 1 April 2019) Chair of Customer Committee, Mike Barber (Committee Chair) Member of Income and Partnerships Jonathan Blackhurst Non-Trustee Members of Customer Committee Committee Susan Crichton (appointed Mike Nussbaum (to 31 March 2020), 1 September 2019) Caroline Stanfield Chair of Transitions Programme Committee, Member of People Non-Trustee Members of Derrick Mabbott Committee, Member of RSSC Regulated Services and Safeguarding Committee Tony Pinkham Alan Tinger (to 31 March 2020), David Ashcroft (Committee Chair) Honorary Treasurer, Member of Non-Trustee Members of Income Audit and Risk Committee, Member Graham Hewitt and Partnerships Committee of Business Change Steering Group, Member of Transitions Programme Nicky Shaw Dan Jones (appointed 1 April 2019) Committee Non-Trustee Members of People Richard Etienne (appointed 1 April New Trustees appointed after Committee 2019) 31 March 2020 Anna Tylor (appointed 29 July 2020), David Raeburn (appointed 1 Chair-designate April 2019)

Rupert Evenett

59 Remuneration but, more often than not, they are in and the organisation is dedicated The RNIB Group was led by the a position of trust or power such as to making sure RNIB is run in Executive Leadership Team consisting a health or care professional, relative a way which actively protects of the CEO and four employed or neighbour. people. Key developments in Directors, and four contracted 2019/20 include the introduction Interim Directors. The total • RNIB has a specialist team which of the Safeguarding Improvement remuneration paid to the employed offers oversight, support, and Plan, which outlines six key members of this group was £0.6m continuous organisational learning areas of work to ensure that (2019: £0.9m consisting of the CEO and development, as well as a safe safeguarding is at the forefront and seven employed Directors). Of place for anyone to raise concerns of everything we do. We have this, as in 2018/19, none related confidentially. Additional scrutiny also developed the Safeguarding to termination and loss of office is provided through a Safeguarding Quality Assurance Framework, payments. Executive Leadership Improvement Plan and governance which involves monthly audits of pay is determined by the People structure which, since April 2018 service safeguarding reporting. We Committee, comprised of Board includes a Regulated Services have carried out staff, volunteer Trustees and independent members. and Safeguarding Committee in and customer surveys to enable addition to the Audit and Risk the organisation to gauge the level Safeguarding Committee and Board of Trustees. of understanding and confidence RNIB’s safeguarding commitment around safeguarding. There Strategies for the prevention of • RNIB has learnt valuable lessons remains no greater priority than to abuse and neglect are a core throughout the statutory inquiry protect children and adults from responsibility for RNIB. Abuse and process. We have established a abuse and to ensure that we have neglect can happen to anybody and positive and open approach which in place the systems, training and can occur in any setting. The person sends out a clear message of culture to ensure we can safeguard causing the harm may be a stranger transparency around safeguarding children and adults.

60 In June 2020, RNIB Safeguarding guidance and training. As of July Safeguarding priorities for launched a new suite of corporate 2020, 135 staff members from 2019/20 safeguarding policies and procedures. priority areas including the Helpline Promoting a safe and trusted These define the difference and ECLOs attended the training, environment and a culture that between, and processes relating meaning that we are better prepared prioritises safeguarding. to, safeguarding concerns and than ever to support customers who We have measured this through allegations. The new policies and are dealing with sight loss. auditing customer, staff and procedures distinguish between the volunteer feedback. legal requirements in safeguarding In June 2019, we introduced the children and adults, how to make Eclipse CRM system to record Safely recruiting and supporting an assessment of risk, how to make safeguarding concerns and all people within RNIB. safeguarding personal, and how to allegations. Mapped against Our safer recruitment policies apply the mental capacity framework. the safeguarding procedural and procedures ensure staff and requirements, the system is clear and volunteers recruited to work for RNIB The Safeguarding team audited 12 easy to use. Since launch, we have are the right fit for our customers months of safeguarding case work also made enhancements due to and the services we offer. at the beginning of this reporting process developments. period. One of the outcomes of Responding promptly to this was the identification of a high The Board of Trustees received every safeguarding concern or volume of suicide risk concerns updated safeguarding training in allegation. that we deal with. To support November 2019. The training content The safeguarding team ensures the RNIB’s services and increase staff covered all the updates from the work we do in RNIB is fit for purpose confidence in dealing with these Charity Commission’s guidance: and we respond to concerns and types of concerns, the Safeguarding “Safeguarding and protecting people allegations in a timely way. team developed new suicide risk for charities and Trustees”.

61 Our audits ensure we monitor development with bespoke training • 22 referrals were made to timeliness in dealing with all matters. and case discussion within teams statutory services including Adult and services. Social Care, the Care Quality Treating with respect, care and Commission CQC and the Scottish dignity the victims of abuse and Safeguarding performance data Care Inspectorate. other safeguarding concerns. 2019/20 This is integral to our safeguarding This is an overview of the number of Safeguarding priorities for practices. Our recent customer safeguarding concerns that we have 2020/21 feedback provided positive responses received and the number and types Safeguarding across RNIB will focus to the support we offer our of investigations that have been on the following priorities over the customers at a time of crisis. concluded from April 2019 to March next 12 months: 2020: Treating with respect, care and Empowerment dignity those that are the subject • 151 safeguarding concerns were Staff and volunteers take a person- of concerns or allegations. reported to RNIB. centred approach to safeguarding. Fairness and respect are core to our safeguarding practices. We ensure • We made 171 referrals to statutory Prevention liaison with partner agencies is services (Local Authorities, GPs etc) Minimise repeat safeguarding issues. balanced and proportionate. in response to these concerns. Proportionality Encouraging a culture of learning • 32 safeguarding allegations were Robust risk identification, assessment throughout the organisation. reported covering abuse, poor and management involving adults, We provide safeguarding training to practice and medication errors. children and their families and carers. all our staff and volunteers. This is a rolling programme of learning and

62 Accountability • Treating with respect, care and privacy and security risk when any Being held accountable with a clear dignity, those that are subject of team in RNIB makes changes to line of sight from Regulated Services concerns or allegations. the ways in which people’s data is Safeguarding Committee and handled. the Board. • Encouraging a culture of learning throughout the organisation. This year we are working through Protection an in-depth review of all personal Ensure all vulnerable adults and Information governance data processing across RNIB, creating children are effectively protected We are committed to improving, a full set of documentation, a from harm. embedding and maintaining a clear comprehensive retention schedule and consistent approach to the way and updated Privacy Notices to Six key areas of work customer data is managed in RNIB. ensure we are clear and transparent • Promoting a safe and trusted about how we use people’s data. environment and a culture that A refresh of mandatory Privacy and prioritises safeguarding. Security Basics training has been We are continuing to focus on carried out for all staff and tracking giving our staff the guidance, • Safely recruiting and supporting all and reporting processes have been tools, knowledge and confidence people within RNIB. introduced to ensure all new starters to manage customers’ information complete this course. Compliance securely and compliantly, and to • Responding promptly to every with this is reported to and escalated be open and honest if they make safeguarding concern or allegation. through the monthly Information a mistake or find something that Governance Group. concerns them. • Treating with respect, care and dignity, the victims of abuse and We have introduced additional other safeguarding concerns. controls to document and manage

63 Health and safety • A dedicated mailbox to respond to including video, audio, PowerPoint In 2019 we introduced our all questions on COVID-19. and Word documents. Occupational Health and Safety Strategy and accompanying Action • Weekly updates and FAQs on what We continue to build on our Plan for delivery. Good progress was we were doing on COVID-19. wellbeing and mental health made on this, but focus changed support by doubling the numbers in the latter part of the year to the • A range of HR guidance and of mental health first aiders in significant challenges brought about wellbeing resources and health the organisation this year and are by the coronavirus pandemic. Across and safety guidance on temporary developing remote modules to the organisation we took an early and homeworking. support the reach of our mental proactive approach to protecting our health awareness sessions. We have clients in our care homes and schools • A procurement initiative to also developed an internal wellbeing and our people by moving rapidly guarantee the provision of PPE. area online which houses a suite of to homeworking, for which we were wellbeing resources where staff can already well prepared. • And we are currently undertaking access guidance, information, videos COVID-19 Risk Assessments in and links to external partners. We To deal with the pandemic and to advance of re-opening offices and have also created wellbeing-focused ensure the safety of our people and of those sites that have remained discussion groups where staff can clients, we introduced: open during the pandemic. interact and connect.

• An online portal dedicated to To meet our responsibilities for the providing staff and volunteers with delivery of statutory health and a focused resource of Government, safety we have been developing a NHS and in-house guidance. series of in-house training modules in a choice of accessible formats

64 Environmental some extent Scope 3 emissions, an Streamlined Energy and Carbon appropriate intensity metric, the Reporting (SECR) disclosure total energy use of electricity, gas and transport fuel and an energy The SECR disclosure presents our efficiency actions summary taken carbon footprint within the United during the relevant financial year. Kingdom across Scope 1, 2 and to

Carbon Reporting Year to 31 March 2020 Energy consumption used to calculate emissions (kWh) 11,798,619 Emissions from combustion of gas (Scope 1) tCO2e 1,165 Emissions from combustion of fuel for transport purposes (Scope 1) tCO2e 73 Emissions from business travel in rental cars or employee-owned vehicles where 210 company is responsible for purchasing the fuel (Scope 3) tCO2e Emissions from purchased electricity (Scope 2, location-based) tCO2e 1,098 Emissions from purchased electricity (Scope 2, market-based) tCO2e 0 Total gross tCO2e based on above 2,546 Intensity ratio (tCO2e/employee) 1.4924

65 Energy Efficiency Action • New overlay roof with insulation One of RNIB's four main Summary installed at Gateshead to reduce RNIB continues to achieve direct energy consumption. priorities is to make the savings in energy and associated organisation fit for its carbon emissions through • Proposals received to install own purpose, including operational and technological solar panels on new overlay roof improvements, including: at Gateshead to further reduce sustainable ways of energy consumption. working. Year to 31 March 2020 • Proposals received to replace all • Trial installation of Prioto Smart light fittings in Gateshead with Energy Management system at LED lighting. Moulsdale House in Edinburgh. • ELT directive to travel by train • Proposals received to install solar between locations and to limit panels at Moulsdale House to private car use and unnecessary integrate with the Prioto system to mileage claims. further manage and reduce energy consumption.

• Proposals received to replace all light fittings in Moulsdale for LED lights.

66 Reporting Period 1 April 2019 – 31 March 2020 Boundary (consolidation approach) Operational approach. Alignment with financial reporting SECR disclosure has been prepared in line with RNIB’s financial year. Reporting method GHG Emissions reporting are in line with the Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard. Emissions factor source DEFRA, 2019 for all emissions factors: https://www.gov.uk/government/ publications/greenhouse-gasreporting-conversion-factors-2019 Calculation method Activity Data x Emission Factor = GHG Emissions Other Other relevant information on Scope 3 transport emission was calculated from business mileage. Business calculation mileage was converted into kgCO2e, then converted into kWh using DEFRA emission factors and the calculation method above. Reason for the intensity Based on the nature of our business, as well as following the recommendations measurement choice of the SECR legislation, we chose ‘number of employees’, as it reflects our growing support capacity.

67 Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the RNIB Group annual report and financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.

68 In preparing these financial The Trustees are responsible for Financial statements are published on statements, the Trustees are keeping adequate accounting records the charity’s website (rnib.org.uk) in required to: that are sufficient to show and accordance with legislation in the explain the charity’s transactions and United Kingdom governing the • Select suitable accounting policies disclose with reasonable accuracy at preparation and dissemination of and then apply them consistently. any time the financial position of the financial statements, which may vary charity and enable them to ensure from legislation in other jurisdictions. • Make judgements and estimates that the financial statements comply The maintenance and integrity of the that are reasonable and prudent. with the Charities Act 2011 and the charity’s website is the responsibility Charities and Trustee Investment of the Trustees. The Trustees' • State whether applicable (Scotland) Act 2005. responsibility also extends to the accounting standards have been ongoing integrity of the financial followed, subject to any material They are also responsible for statements contained therein. departures disclosed and explained safeguarding the assets of the in the financial statements. charity and the Group and hence for taking reasonable steps for the • Prepare the financial statements prevention and detection of fraud on the going concern basis unless and other irregularities. it is inappropriate to presume that the charity will continue in business.

69 Disclosure of information to auditors

In so far as the Trustees are aware:

• There is no relevant audit information of which the charity’s auditors are unaware.

• The Trustees have taken all the steps that they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

70 71 Statement of public benefit

RNIB’s charitable objects are The Trustees confirm that they have enshrined within its Charter, and complied with the duty in section 17 as such, the Trustees ensure that of the Charities Act 2011 to have due this Charter is carried out for public regard to the Charity Commission’s benefit through our four strategic general guidance on public benefit: priorities. “Charitable Purposes and Public Benefit”. This is done through delivery of services that are primarily aimed The Trustees’ Report, including the at blind or partially sighted people, Strategic Report, was approved by the and, where appropriate, open to all Board of Trustees, and authorised for who might benefit throughout the issue on 30 October 2020. United Kingdom, as well as through advocacy and campaigning.

This report allows us to show how Eleanor Southwood our charitable funds are distributed Chair and spent. It also demonstrates the benefits and effect that the funds have had on those using the services, as well as their wider impact on Liz Walker society for the reported year and in Honorary Treasurer the future.

72 73 Independent Auditor’s report to Trustees of RNIB

Opinion In our opinion, the financial Basis for opinion We have audited the financial statements: We conducted our audit in statements of the Royal National accordance with International Institute of Blind People (“the Parent • give a true and fair view of Standards on Auditing (UK) Charity”) and its subsidiaries (“the the state of the Group’s and (ISAs (UK)) and applicable law. Group”) for the year ended 31 March of the Parent Charity’s affairs Our responsibilities under those 2020 which comprise the Group as at 31 March 2020 and of the standards are further described in Statement of Financial Activities, Group’s incoming resources and the Auditor’s responsibilities for the the Consolidated and RNIB Balance application of resources for the audit of the financial statements Sheets, the Group Cash Flow year then ended; section of our report. We are Statement and notes to the financial independent of the Group and the statements, including a summary of • have been properly prepared in Parent Charity in accordance with significant accounting policies. The accordance with United Kingdom the ethical requirements relevant to financial reporting framework that Generally Accepted Accounting our audit of the financial statements has been applied in their preparation Practice; and in the UK, including the FRC’s Ethical is applicable law and United Standard, and we have fulfilled Kingdom Accounting Standards, • have been prepared in accordance our other ethical responsibilities in including Financial Reporting with the requirements of the accordance with these requirements. Standard 102 The Financial Reporting Charities Act 2011 and Charities We believe that the audit evidence Standard applicable in the UK and and Trustee Investment (Scotland) we have obtained is sufficient and Republic of Ireland (United Kingdom Act 2005 and regulation 6 & 8 of appropriate to provide a basis for Generally Accepted Accounting the Charities Accounts (Scotland) our opinion. Practice). Regulations 2006, as amended in 2010).

74 Conclusions related to going Other information inconsistencies or apparent material concern The other information comprises misstatements, we are required We have nothing to report in respect the information included in the to determine whether there is a of the following matters in relation Annual Report and Accounts, other material misstatement in the financial to which the ISAs (UK) require us to than the financial statements and statements or a material misstatement report to you where: our auditor’s report thereon. The of the other information. If, based Trustees are responsible for the other on the work we have performed, • the Trustees’ use of the going information. we conclude that there is a concern basis of accounting in material misstatement of this other the preparation of the financial Our opinion on the financial information, we are required to report statements is not appropriate; or statements does not cover the other that fact. information and, except to the extent • the Trustees have not disclosed otherwise explicitly stated in our We have nothing to report in in the financial statements any report, we do not express any form of this regard. identified material uncertainties assurance conclusion thereon. that may cast significant doubt about the Group or the Parent In connection with our audit of the Charity’s ability to continue to financial statements, our responsibility adopt the going concern basis is to read the other information and, in of accounting for a period of at doing so, consider whether the other least twelve months from the date information is materially inconsistent when the financial statements are with the financial statements or our authorised for issue. knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material

75 Matters on which we are required • we have not received all the basis of accounting unless the to report by exception information and explanations Trustees either intend to liquidate We have nothing to report in respect we require for our audit. the Group or the parent Charity or to of the following matters in relation cease operations, or have no realistic to which the Charities Act 2011 and Responsibilities of Trustees alternative but to do so. the Charities and Trustee Investment As explained more fully in the (Scotland) Act 2005 require us to Trustee Board Responsibilities Auditor’s responsibilities for the report to you if, in our opinion; section, the Trustees are responsible audit of the financial statements for the preparation of the financial We have been appointed as auditor • the information contained in the statements and for being satisfied under section 144 of the Charities financial statements is inconsistent that they give a true and fair view, Act 2011 and section 44(1)(c) of the in any material respect with the and for such internal control as the Charities and Trustee Investment Trustees’ Annual Report; or Trustees determine is necessary to (Scotland) Act 2005 and report enable the preparation of financial in accordance with the Acts and • proper accounting records have statements that are free from relevant regulations made or having not been kept by the Parent material misstatement, whether due effect thereunder. Charity; or to fraud or error. Our objectives are to obtain • the Parent Charity financial In preparing the financial statements, reasonable assurance about whether statements are not in agreement the Trustees are responsible for the financial statements as a whole with the accounting records and assessing the Group’s and the are free from material misstatement, returns; or Parent Charity’s ability to continue whether due to fraud or error, and as a going concern, disclosing, as to issue an auditor’s report that applicable, matters related to going includes our opinion. concern and using the going concern

76 Reasonable assurance is a high Use of our report BDO LLP is eligible for appointment level of assurance, but is not a This report is made solely to the as auditor of the charity by virtue guarantee that an audit conducted in Charity’s Trustees, as a body, in of its eligibility for appointment as accordance with ISAs (UK) will always accordance with the Charities Act auditor of a company under section detect a material misstatement when 2011 and the Charities and Trustee 1212 of the Companies Act 2006. it exists. Misstatements can arise from Investment (Scotland) Act 2005. fraud or error and are considered Our audit work has been undertaken BDO LLP is a limited liability material if, individually or in the so that we might state to the partnership registered in England aggregate, they could reasonably be Charity’s Trustees those matters and Wales (with registered number expected to influence the economic we are required to state to them OC305127). decisions of users taken on the basis in an auditor’s report and for no of these financial statements. other purpose. To the fullest extent permitted by law, we do not accept A further description of our or assume responsibility to anyone responsibilities for the audit of the other than the Charity and the financial statements is located at Charity’s Trustees as a body, for our the Financial Reporting Council’s audit work, for this report, or for the (“FRC’s”) website at: https://www. opinions we have formed. frc.org.uk/auditorsresponsibilities. This description forms part of our BDO LLP, statutory auditor auditor’s report. London, UK 30 October 2020

77 78 Group statement of financial activities for the year ended 31 March 2020

Continuing Operations for the Discontinuing Operations for Year ended year ended 31 March 2020 the year ended 31 March 2020 31 March 2019 Notes Unre- Re- En- Total Unre- Re- Total Total Unre- Re- En- Total stricted strict- dow- £’000 strict- strict- £’000 £’000 strict- strict- dow- £’000 funds ed ment ed ed ed ed ment (Reclas- £’000 funds funds funds funds funds funds funds sified) £’000 £’000 £’000 £’000 £’000 £’000 £’000 (Re- (Re- (Re- classi- classi- clas- fied) fied) sified)

Income and endowments from: Donations 16,774 2,470 - 19,244 - - - 19,244 16,635 1,376 - 18,011 Legacies 28,307 4,337 - 32,644 - - - 32,644 38,549 2,870 - 41,419 Trading 22,807 - - 22,807 - - - 22,807 21,330 - - 21,330 income

Charitable activities: Equip blind and partially sighted people to 3,400 684 - 4,084 - - - 4,084 3,586 1,250 - 4,836 thrive – National Sight Loss Advice Service

79 Continuing Operations for the Discontinuing Operations for Year ended year ended 31 March 2020 the year ended 31 March 2020 31 March 2019 Notes Unre- Re- En- Total Unre- Re- Total Total Unre- Re- En- Total stricted strict- dow- £’000 strict- strict- £’000 £’000 strict- strict- dow- £’000 funds ed ment ed ed ed ed ment (Reclas- £’000 funds funds funds funds funds funds funds sified) £’000 £’000 £’000 £’000 £’000 £’000 £’000 (Re- (Re- (Re- classi- classi- clas- fied) fied) sified) Equip blind and partially sighted people to thrive – Regulated Services 6 1,882 - 1,888 29 12,866 12,895 14,783 91 17,335 - 17,426 Equip blind and partially sighted people to thrive – Other 1,333 738 - 2,071 - - - 2,071 1,610 867 - 2,477 Connect our community ------22 68 - 90 Change society - 14 - 14 - - - 14 50 9 - 59 Total income from charitable activities: 4,739 3,318 - 8,057 29 12,866 12,895 20,952 5,359 19,529 - 24,888

80 Continuing Operations for the Discontinuing Operations for Year ended year ended 31 March 2020 the year ended 31 March 2020 31 March 2019 Notes Unre- Re- En- Total Unre- Re- Total Total Unre- Re- En- Total stricted strict- dow- £’000 strict- strict- £’000 £’000 strict- strict- dow- £’000 funds ed ment ed ed ed ed ment (Reclas- £’000 funds funds funds funds funds funds funds sified) £’000 £’000 £’000 £’000 £’000 £’000 £’000 (Re- (Re- (Re- classi- classi- clas- fied) fied) sified) Investment 2 127 152 - 279 - - - 279 66 146 - 212 income Other income 6 - - 6 - - - 6 413 - - 413

Total income and 72,760 10,277 - 83,037 29 12,866 12,895 95,932 82,352 23,921 - 106,273 endowments

Expenditure on: Raising funds 4/5/6 14,567 - - 14,567 - - - 14,567 11,523 - - 11,523 Trading 17,222 - - 17,222 - - - 17,222 15,543 - - 15,543 activities

Charitable activities: Equip blind and partially sighted people to 4/5/6 17,149 4,607 - 21,756 - - - 21,756 25,173 583 - 25,756 thrive – National Sight Loss Advice Service

81 Continuing Operations for the Discontinuing Operations for Year ended year ended 31 March 2020 the year ended 31 March 2020 31 March 2019 Notes Unre- Re- En- Total Unre- Re- Total Total Unre- Re- En- Total stricted strict- dow- £’000 strict- strict- £’000 £’000 strict- strict- dow- £’000 funds ed ment ed ed ed ed ment (Reclas- £’000 funds funds funds funds funds funds funds sified) £’000 £’000 £’000 £’000 £’000 £’000 £’000 (Re- (Re- (Re- classi- classi- clas- fied) fied) sified) Equip blind and partially sighted people to 2,480 1,200 - 3,680 2,596 13,875 16,471 20,151 5,857 22,235 - 28,092 thrive – Regulated Services Equip blind and partially sighted 7,053 3,123 36 10,212 - - - 10,212 11,297 1,040 36 12,373 people to thrive – Other Connect our 4/5/6 2,827 1 - 2,828 - - - 2,828 2,293 1,122 - 3,415 community Change 4/5/6 6,030 100 - 6,130 - - - 6,130 5,594 145 - 5,739 society Total expenditure 35,539 9,031 36 44,606 2,596 13,875 16,471 61,077 50,214 25,125 36 75,375 on charitable activities:

Total 67,328 9,031 36 76,395 2,596 13,875 16,471 92,866 77,280 25,125 36 102,441 expenditure

82 Continuing Operations for the Discontinuing Operations for Year ended year ended 31 March 2020 the year ended 31 March 2020 31 March 2019 Notes Unre- Re- En- Total Unre- Re- Total Total Unre- Re- En- Total stricted strict- dow- £’000 strict- strict- £’000 £’000 strict- strict- dow- £’000 funds ed ment ed ed ed ed ment (Reclas- £’000 funds funds funds funds funds funds funds sified) £’000 £’000 £’000 £’000 £’000 £’000 £’000 (Re- (Re- (Re- classi- classi- clas- fied) fied) sified) Net income/ (expenditure) before gains/ 5,432 1,246 (36) 6,642 (2,567) (1,009) (3,576) 3,066 5,072 (1,024) (36) 3,832 (losses) on investments

Net gains/ (losses) on (285) (8) (224) (517) - - - (517) (40) 2 43 5 investments

Net income/ (expenditure) before 5,147 1,238 (260) 6,125 (2,567) (1,009) (3,576) 2,549 5,032 (1,202) 7 3,837 exceptional items

Exceptional 12 5,853 (513) - 5,340 - 280 280 5,620 1,226 - - 1,226 items

Net income/ (expenditure) after 11,000 725 (260) 11,465 (2,567) (729) (3,296) 8,169 6,258 (1,202) 7 5,063 exceptional items

83 Continuing Operations for the Discontinuing Operations for Year ended year ended 31 March 2020 the year ended 31 March 2020 31 March 2019 Notes Unre- Re- En- Total Unre- Re- Total Total Unre- Re- En- Total stricted strict- dow- £’000 strict- strict- £’000 £’000 strict- strict- dow- £’000 funds ed ment ed ed ed ed ment (Reclas- £’000 funds funds funds funds funds funds funds sified) £’000 £’000 £’000 £’000 £’000 £’000 £’000 (Re- (Re- (Re- classi- classi- clas- fied) fied) sified) Transfers between 149 (152) - (3) - 3 3 - (114) 114 - - funds Other recognised gains: Net gains on interest rate 38 - - 38 - - - 38 213 - - 213 swap Actuarial gain on defined benefit 23 21,357 - - 21,357 - 193 193 21,550 606 210 - 816 pension scheme Net movement in 32,544 573 (260) 32,857 (2,567) (533) (3,100) 29,757 6,963 (878) 7 6,092 funds Reconciliation of funds Total funds brought 71,894 5,867 5,789 83,550 2,567 (318) 2,249 85,799 67,498 6,427 5,782 79,707 forward

84 Continuing Operations for the Discontinuing Operations for Year ended year ended 31 March 2020 the year ended 31 March 2020 31 March 2019 Notes Unre- Re- En- Total Unre- Re- Total Total Unre- Re- En- Total stricted strict- dow- £’000 strict- strict- £’000 £’000 strict- strict- dow- £’000 funds ed ment ed ed ed ed ment (Reclas- £’000 funds funds funds funds funds funds funds sified) £’000 £’000 £’000 £’000 £’000 £’000 £’000 (Re- (Re- (Re- classi- classi- clas- fied) fied) sified) Total funds carried 104,438 6,440 5,529 116,407 - (851) (851) 115,556 74,461 5,549 5,789 85,799 forward

The Statement of Financial activities Learning Trust – are treated as includes all gains and losses restricted as these funds relate to recognised in the year. Total income the specific services provided by of RNIB during the year, including each entity. investment gains/losses was £63.7 million (2019: £75.0 million) less The 2019 year figures relating to resources expended of £60.3 million the split of charitable income and (2019: £70.9 million) led to a surplus expenditure have been reclassified of £3.4 million (2019: surplus of £4.1 following a review of activities within million). The Isle of Man Government the priorities this year. requires that we disclose the income and expenditure in the Isle of Man which amounted to £0.1 million (2019: £0.1 million) and £0.1 million (2019: £0.1 million) respectively. The notes that follow form part of the financial statements.

Income and expenditure through our subsidiary charities – BucksVision, RNIB Charity, CIB and RNIB Specialist

85 Group and RNIB balance sheets as at 31 March 2020

Notes Group 2020 Group 2019 RNIB 2020 RNIB 2019 £’000 £’000 £’000 £’000 Fixed assets Tangible assets 12 56,021 68,238 53,707 65,286 Intangible assets 13 2,175 1,382 2,175 1,382 Investments 14 7,328 7,881 7,288 7,836 Total fixed assets 65,524 77,501 63,170 74,504

Current assets Stocks and work in progress 15 988 991 4 125 Debtors due within one year 16 26,340 31,124 32,733 44,105 Cash at bank and in hand 11,083 14,381 9,150 8,697 Total current assets 38,411 46,496 41,887 52,927 Creditors: amounts falling due within 17 8,097 15,662 12,483 22,860 one year Net current assets 30,314 30,834 29,404 30,067 Total assets less current liabilities 95,838 108,335 92,574 104,571

Creditors: amounts falling due after 18 243 18,679 43 18,394 more than one year Provisions for liabilities and charges 19 1,816 1,207 1,746 1,137 Net assets excluding pension liability 93,779 88,449 90,785 85,040 Defined benefit pension 23 21,777 (2,650) 23,006 (1,297) asset/(liability)

86 Notes Group 2020 Group 2019 RNIB 2020 RNIB 2019 £’000 £’000 £’000 £’000 Net assets including pension liability 115,556 85,799 113,791 83,743 The funds of the Group/RNIB: Endowment funds 21 5,529 5,789 5,528 5,788 Restricted income funds 21 5,589 5,549 3,825 3,494

Unrestricted income funds: Designated 21 55,759 42,979 55,759 42,979 General 21 25,673 32,779 25,673 32,779 Pension reserve 21/23 23,006 (1,297) 23,006 (1,297) Total unrestricted income funds 104,438 74,461 104,438 74,461

Total Group/RNIB funds 115,556 85,799 113,791 83,743

These financial statements were approved by the Board of Trustees on 30 October 2020 and signed on behalf of RNIB by Eleanor Southwood, Chair, and Liz Walker, Honorary Treasurer.

Eleanor Southwood, Chair

Liz Walker, Honorary Treasurer

87 Group cash flow statement for the year ended 31 March 2020

Note 2020 2019 £’000 £’000 Net cash generated by operating activities A 9,589 11,916

Cash flows from investing activities Investment income 279 212 Proceeds from exceptional items 1,424 - Purchase of fixed assets (2,122) (554) Proceeds from sale of tangible fixed assets 10,000 3,610 Proceeds from sale of investments - 57 Net cash provided by investing activities 9,581 3,325

Cash flows from financing activities Repayments of borrowing (19,881) (3,591) Net cash used in financing activities (19,881) (3,591)

Cash flows from other activities Deficit payments to defined benefit pension scheme (2,500) (1,875) Net cash used in other activities (2,500) (1,875)

Net (decrease)/increase in cash and cash equivalents in the B (3,211) 9,775 reporting year Cash and cash equivalents at the beginning B 14,294 4,519 of the reporting year Cash and cash equivalents at the end of the reporting year 11,083 14,294

88 Notes to the cash flow statement

A. Reconciliation of net income to net cash 2020 £’000 2019 £’000 outflow from operating activities Net income for the reporting year before transfers 2,549 3,837 Adjustments for: Investment income (279) (212) Depreciation 1,960 2,459 Amortisation 1,093 1,520 Investment management fees 36 36 Transfer investments from current assets to fixed assets - - Gift of investment properties - - Cost relating to disposal of tangible fixed assets (257) (62) Loss/(Profit) on disposal of tangible fixed assets 185 (413) Loss/(Gain) on investments 517 (5) (Decrease)/Increase in current creditors (2,158) 3,040 (Decrease)/Increase in long-term creditors (190) 192 Increase/(Decrease) in provisions for liabilities and charges 609 (1,191) (Decrease)/Increase in pension provision (376) 2,090 Decrease/(Increase) in debtors 5,897 255 Decrease in stock 3 370 Net cash inflow from operating activities 9,589 11,916

89 B. Analysis of change in net debt 31 March Cash flow 31 March Cash flow 31 March 2018 2018/19 2019 2019/20 2020 £’000 £’000 £’000 £’000 £’000 Cash at bank 4,691 9,690 14,381 (3,298) 11,083 Bank overdraft (172) 85 (87) 87 - Total cash and cash equivalents 4,519 9,775 14,294 (3,211) 11,083 Debt due within one year (4,363) 2,517 (1,846) 1,765 (80) Debt due after one year (19,768) 1,374 (18,394) 18,351 (43) Total net (debt)/cash net of debt (19,612) 13,666 (5,946) 16,903 10,957

90 Notes to the financial statements for the year ended 31 March 2020

1. Accounting policies Charities: Statement of Recommended uniform accounting policies. Their Practice effective from 1 April 2005 objectives contribute to those of the The principal accounting policies which has since been withdrawn. RNIB Group strategy and under the adopted, judgements and key tests of control they are deemed to be sources of estimation uncertainty The financial statements also charitable subsidiaries of RNIB. in the preparation of these financial conform to the requirements of the statements are as set out below. Charities Act 2011, the Charities and The net assets at the date of These policies have been consistently Trustee Investment (Scotland) Act acquisition or merger are assessed applied to all the years presented, 2005 and the Charities Accounts on a fair value basis for the purposes unless otherwise stated. (Scotland) Regulations 2006. No of consolidation into the results for separate Statement of Financial the RNIB Group. The results of the 1.1 Basis of preparation Activities (SoFA) has been presented subsidiaries acquired during the year These consolidated and separate for the charity alone as permitted by are included in the SoFA from the financial statements are prepared the Charities SORP (FRS102). effective date of acquisition. The on a going concern basis, under the intra‑group transactions, balances and historical cost convention, as modified 1.2 Going concern unrealised profits are eliminated in full. by the recognition of certain financial As discussed in the Financial Review assets and liabilities measured at section of the Trustees’ Report No separate SoFA has been presented fair value. The financial statements and Strategic Report, the Group’s for RNIB alone as permitted by an have been prepared to give a ‘true forecasts and projections, taking administrative concession issued by and fair’ view and have departed account of reasonable possible the Charity Commission for England from the Charities (Accounts and changes in performance, show that and Wales. Reports) Regulations 2008 only to the Group will have sufficient cash the extent required to provide a ‘true flows and reserves to adopt the 1.4 Foreign currency transactions and fair view’. This departure has going concern basis in preparing its Foreign currency transactions involved following Accounting and financial statements. completed within the year are Reporting by Charities: Statement of included at their transacted sterling Recommended Practice applicable 1.3 Group financial statements equivalents. Monetary assets and to charities preparing their accounts The results of each of RNIB’s subsidiary liabilities are valued using those in accordance with the Financial undertakings, as listed in note 3, have rates published by HM Revenue and Reporting Standard applicable in the been consolidated in these financial Customs as at the balance sheet UK and Republic of Ireland (FRS102) statements under the heading “Group” date. Any foreign exchange gains or effective 1 January 2019 rather than on a line-by-line basis, adopting losses are charged to the SoFA. the Accounting and Reporting by

91 1.5 Fund accounting carried forward in the relevant fund. donations or by covenanting the Unrestricted funds comprise Also, within restricted funds are the profits of those undertakings. accumulated surpluses and deficits results of the subsidiary charities, on general funds that are available which are operating under narrower Pecuniary legacies are recognised for use at the discretion of the objectives than those of RNIB. when probate is in place. Residuary Trustees in furtherance of the legacies are recognised when general objectives of RNIB. Endowments received are credited probate is granted, a copy of the directly to the relevant endowment will has been received to confirm Designated funds are unrestricted fund. Income arising from the RNIB Group’s entitlement, and there funds that the Trustees of RNIB have related investments is allocated to is sufficient information to value set aside for a specific purpose. the general fund or to the relevant them. In practice this is usually Within designated funds are “service restricted fund, depending on the when the assets and liabilities properties” and “other fixed assets”. terms of endowment. statement is received. Reversionary “Service properties” represents the interests involving a life tenant value of RNIB’s interests in land and A review of the allocation of and contentious legacies are buildings, for the provision of services expenditure is performed when not recognised. to people with sight problems. a project of contract is nearing This value is shown in a separate completion, which can give rise to Income generated from charitable designated fund, as the properties a transfer between funds. activities is recognised when it represented are essential for the can be reliably measured, there is provision of RNIB’s services. Transfers 1.6 Income entitlement, and receipt is probable. in respect of additions to property in Donations are accounted for as Where received in advance of the the year are made from the general soon as there is entitlement and the activity to be performed then the fund. Transfers are made from this amount is measurable and receipt is income is deferred. fund to the general fund in respect probable. Donations include Gift Aid of property disposals during the year. based on amounts recoverable at the Income from the sale of goods and Property depreciation is charged accounting date. Donated goods and services is recognised when orders to this fund. “Other fixed assets” services are included at the point in are fulfilled, or services are delivered. represents other assets in use by RNIB. time when they are received at the The assets of subsidiary charities are value to RNIB where these can be Investment income, interest on held within the restricted funds. quantified. No amounts are included deposits and income in connection in these financial statements for with services to people with sight Restricted funds comprise income the services donated by volunteers. problems is recognised on an received with special conditions Income from trading in subsidiary accruals basis. Investment income attached. Income for a specific undertakings is transferred to RNIB arising on endowment funds purpose not spent in any year is by making qualifying charitable is credited to the appropriate

92 fund in accordance with the 1.7 Expenditure Trading 2020 in 2019 in prescribed conditions. a. Expenditure, including Income £’000 £’000 irrecoverable VAT, is accounted for Lotteries and Accrued income is provided for on an accruals basis. 7,415 5,728 Raffles revenue that has been earned in the b. Support costs include both current financial year, but is yet to Activities Group and corporate costs and be invoiced. undertaken are incurred in support of direct by RNIB 9,807 9,815 service expenditures. Support Income generated from Lotteries and Enterprises costs also include the governance Ltd Raffles is recognised under Trading costs incurred in relation to Income, along with the income from Total 17,222 15,543 the running of RNIB and the RNIB Enterprises. The split of income charitable subsidiaries. The is detailed below: allocation of support costs is on a 1.8 Tangible fixed assets Trading 2020 in 2019 in mixture of bases (see note 5). Tangible assets are recorded at cost, including irrecoverable VAT, or where Income £’000 £’000 c. Fundraising expenses include donated, open market valuation Lotteries and those costs incurred in raising 10,678 10,191 at the time of donation. Individual Raffles donations and legacies. items of expenditure below £5,000 Activities d. Expenditure related to the are not capitalised across the RNIB undertaken income generated by Lotteries Group. by RNIB 12,129 11,139 and Raffles is recognised under Enterprises Trading Activities, along with Depreciation is provided on all Ltd. the expenditure related to RNIB tangible fixed assets, except freehold Total 22,807 21,330 Enterprises. A breakdown of land and assets under construction, expenditure is detailed below: at rates calculated to write off the Included within the lotteries and cost on a straight-line basis over raffles income figure above is net e. Grants payable are charged to their expected useful lives. Where income of £1,782k (2019: £1,074k) the SoFA when a constructive the assets have been acquired under relating to income from the People’s obligation exists: when the a finance lease, then depreciation Postcode Lottery. This comprises recipient has been informed. and any impairment is provided of gross income of £5,570k (2019: f. Redundancy costs are at rates calculated to write off the £3,355k) offset by expenses of recognised when there is a cost, less estimated residual value £3,788k (2019: £2,281k). legal or constructive obligation of each asset, over the life of the (see note 8). primary lease. The standard rates of depreciation are as follows:

93 Service properties Intangible assets are reviewed for impairment if the above factors Freehold buildings 50 years indicate that the carrying amount Leasehold land and buildings – lease longer than 50 years 50 years may be impaired. Costs associated Leasehold land and buildings – lease shorter than 50 years Lease period with maintaining computer software are recognised as an expense as incurred. Development costs that are Machinery, vehicles and equipment directly attributable to the design Motor vehicles; fixtures and fittings; equipment 5 years and testing of identifiable and Computer hardware 3 years unique software products controlled by the Group are recognised as intangible assets when the following Fixed asset residual values and useful 1.9 Intangible Fixed Assets criteria are met: lives are reviewed, and adjusted Intangible assets are stated at cost if appropriate, at the end of each less accumulated amortisation and • it is technically feasible to reporting year. The effect of any accumulated impairment losses. complete the software so that it change is recognised in the SoFA Amortisation is calculated and will be available for use; in the year in which it occurs. Fixed charged to the SoFA, using the assets are also reviewed to determine straight-line method, to allocate the • management intends to complete whether there is any indication depreciable amount of the assets the software and use or sell it; that those assets have suffered to their residual values over their an impairment loss. If there is an estimated useful lives, as follows: • there is an ability to use or sell indication of possible impairment, the software; the recoverable amount of any Software – three years affected asset is estimated and Where factors, such as technological • it can be demonstrated how the compared with its carrying amount. advancement or changes in market software will generate probable If the estimated recoverable amount price, indicate that residual value or future economic benefits; is lower, the carrying amount is useful life have changed, the residual reduced to its estimated recoverable value, useful life or amortisation rate • adequate technical, financial and amount, and an impairment loss are amended in the year of change other resources to complete the is recognised immediately in the to reflect the new circumstances. development and to use or sell the statement of financial activities. software are available; and • the expenditure attributable to the software during its development can be reliably measured.

94 Other development expenditures year in which the related income is reliably. Creditors are normally that do not meet these criteria are recognised. recognised at their settlement recognised as an expense as incurred. amount. For creditors due for 1.12 Debtors settlement in more than one year 1.10 Investments Debtors are stated after provision the amount will be discounted Listed investments are stated at for impairment. Prepayments are for the time value of money market value, valued at their bid valued at the amount prepaid. Where where material. price, at the balance sheet date. debtors are due after more than one Investment properties are stated at year, they are discounted for the 1.16 Financial instruments market value as advised by RNIB’s time value of money where material. Basic financial instruments are independent property advisers, who initially recognised at transaction are appropriately qualified, at the 1.13 Property held for sale value and subsequently measured balance sheet date and this is done In accordance with the Charity SORP at their settlement value with the on an annual basis. (FRS102), land and property held for exception of bank loans which resale are disclosed separately within are subsequently measured at The investment in subsidiary fixed assets at cost. Gains and losses amortised cost using the effective undertakings is at cost. on disposal are recognised at the interest method. Complex financial The SoFA includes the net gains point of sale. instruments such as interest rate and losses arising on disposals and swaps and forward exchange revaluations throughout the year. 1.14 Cash at bank and in hand contracts are measured at fair value Cash at bank and cash in hand with changes put through the SoFA 1.11 Stocks includes cash, short-term highly in the relevant year. The group Stocks of raw materials, liquid investments with a maturity applies hedge accounting where consumables, work-in-progress and of three months or less and allowable under FRS102 section 12 finished goods are valued at the bank overdrafts. Bank overdrafts and this is disclosed in the notes if lower of cost and estimated selling are shown within creditors in current applicable. price less costs to complete and sell. liabilities. The cost of stock is calculated using 1.17 Pension schemes the direct cost method on a first-in 1.15 Creditors For the defined benefit pension first-out basis. Finished goods for Creditors are recognised where schemes of the RNIB Group, the resale comprise products suitable there is a present obligation current service costs, gains and losses for use by blind and partially sighted resulting from a past event that on settlements and curtailments, people. Provision is made to reduce will probably result in the transfer and administrative expenses are carrying values for slow moving, of funds to a third party and the charged to expenditure. Similarly, obsolete and defective stock. Stocks amount due to settle the obligation pension finance costs arising from are recognised as an expense in the can be measured or estimated changes in the net of the interest

95 costs and expected return on assets underlying assets and liabilities. These 1.20 Accounting estimates are charged to expenditure. Where are treated as defined contribution and judgements income arises as a result of such schemes in line with the exemption In preparing the financial changes, this is shown in the SoFA as within FRS102. Where multi-employer statements, the Trustees are required “other” income. Actuarial gains and defined benefit pension schemes to make estimates and judgements. losses are recognised immediately in have an agreed deficit reduction The matters considered below are the SoFA as “Actuarial gain, or loss, plan, a liability is recognised for the considered to be the most important on defined benefit pension scheme”. contributions payable. in understanding the judgements that are involved in preparing RNIB is a member of a multi‑employer 1.18 Leased assets the financial statements and the defined benefit pension plan with Leases are regarded as finance leases uncertainties that could impact the Pensions Trust where its share of where their terms transfer to the amounts reported in the results of the actuarial deficit cannot be lessee substantially all of the benefits operations, financial position and identified and hence it is treated and burdens of ownership other than cash flows. as a defined contribution scheme. the right to legal title. There is an agreement in place Cost allocation to make additional contributions The obligations to the lessor are Support costs not attributable based on current and past service shown as part of the borrowings and to a single charitable activity are employees and hence a liability is the rights in the corresponding assets allocated or apportioned on a basis recognised for the present value are treated in the same way as owned consistent with identified cost drivers of these outstanding additional fixed assets. for that cost category. Cost drivers contributions. The Group and RNIB utilised include head count, floor defined benefit pension net scheme All operating leases and rental space, and effort and judgement is asset/liability is shown on the face of expenses are charged to the SoFA as exercised in applying cost drivers to the Balance Sheet. For the defined incurred over the term of the lease on cost categories. contribution schemes of the RNIB a straight-line basis. Group the amounts charged to the SoFA in respect of pension costs and 1.19 Taxation the post-retirement benefits are the RNIB is a registered charity, and contributions payable in the year. as such is entitled to certain tax exemptions on income and profit There are a number of pension from investments and surpluses on arrangements within the Group which any trading activities carried out are multi-employer pension schemes in furtherance of RNIB’s primary and as such it is not possible to objectives, if these profits are applied identify the employer’s share of the solely for charitable purposes.

96 Interest rate swap Actuarial assumptions in respect of Provisions RNIB entered into an interest rate defined benefit pension schemes Provisions are recognised when swap with AIB that runs from 2011 to The application of actuarial the RNIB has a present legal or 2026 and as a result it is necessary to assumptions relating to various constructive obligation as a result calculate the fair value of the swap defined benefit pension schemes of past events; it is probable that an at the end of each financial year. is incorporated in the financial outflow of resources will be required Judgement is required in calculating statements in accordance with to settle the obligation; and the the fair value as it is reliant on FRS102. In applying FRS102, advice amount of the obligation can be discount rates and future interest is taken from independent qualified estimated reliably. rate predictions. In December 2019, actuaries. In this context, significant partly using proceeds from the judgement is exercised in a number Impairment of assets sale of The RNIB Pears Centre, RNIB of areas, including future changes in Where an indication of impairment repaid the amount outstanding salaries and inflation, mortality rates is identified, an estimate of the on the interest rate swap and and the selection of appropriate recoverable value of the asset is terminated the arrangement. discount rates. required. This requires an estimate A gain of £38,000 was realised of the future economic benefits on the termination. Pension scheme deficit from the asset and the selection reduction payments of an appropriate discount rate to Legacy income accrual As explained at note 23, there is a calculate the present value of the Legacy income is recognised deficit reduction plan in place in economic benefits. in accordance with the income respect of several of the Group’s recognition policy detailed in 1.6 defined benefit pension schemes. above. In calculating the level of In each instance, the relevant legacy accrual, management is group member has agreed with required to exercise estimation the respective scheme that it will and judgement, particularly in make annual recovery payments determining the amount and that aim to eliminate the deficit. probability of receipt. The level of the deficit and the deficit recovery payments are highly sensitive to a number of assumptions, hence the use of independent qualified actuaries.

97 2. Investment income

2020 2020 2020 2019 2019 2019 Unrestricted Restricted Total Unrestricted Restricted Total £’000 £’000 £’000 £’000 £’000 £’000

General funds Investment income from 8 151 159 8 145 153 quoted investments Bank interest receivable 6 1 7 4 1 5 Rents 33 - 33 54 - 54 Royalties 80 - 80 - - -

Total 127 152 279 66 146 212

Our investment policy can be found in the financial review section of the Trustees' Report.

98 3. Subsidiary undertakings RNIB has the following nominal holdings in subsidiary undertakings. The subsidiaries are all based within the United Kingdom and their accounting year ends are 31 March, with exception of RNIB Specialist Learning Trust whose year-end is 31 August. The holding in RNIB Business Services LLP is held indirectly through RNIB Enterprises Limited (50 per cent) and MPH Accessible Media Limited (50 per cent).

Subsidiary undertakings Registered in Capital held Number of £1 ordinary with a share capital per cent shares held RNIB Enterprises Limited England and Wales 100 5,000 RNIB Services Limited England and Wales 100 1 MPH Accessible Media Limited England and Wales 100 10,000 RNIB Business Services LLP England and Wales 100 Not applicable

RNIB is the sole corporate member of the following organisations which are limited by guarantee with no shares in issue:

Subsidiary undertakings Registered in Company Charity number Charity number limited by guarantee number – Scotland Action for Blind People England and Wales 00026688 205913 SC040050 RNIB Charity England and Wales 08971500 1156629 SC044876 CIB (trading as Sight Life) England and Wales 00149982 214131 - RNIB Direct Services Lottery Limited England and Wales 10907799 - - RNIB Feel Good Friday Lottery Limited England and Wales 11275644 - - NTNM England and Wales 01973092 293656 - BCNI Northern Ireland NI020701 XN48801 - NLB England and Wales 00058823 213212 - RNIB Specialist Learning Trust England and Wales 08478985 Exempt Charity -

99 RNIB has an indirect holding in the following organisations, through Action For Blind People, which are all limited by guarantee with no shares in issue:

Subsidiary undertakings Registered in Company number Charity number limited by guarantee BucksVision England and Wales 08016572 1147814 The Blind Society for England and Wales 03736040 1075973 North Tyneside Limited Staffordshire Blind England and Wales 04154438 1091458

100 Results for the year ended 31 March 2020 of the subsidiaries of RNIB operating under association agreements

RNIB CIB BucksVision RNIB Total 2020 Charity (Trading as £’000 Specialist £’000 £’000 Sight Life) Learning £’000 Trust £’000 Income and Expenditure Total income 13,885 445 396 1,816 16,542 Total expenditure (13,915) (452) (385) (2,040) (16,792) Net (expenditure) /income before exceptional items (30) (7) 11 (224) (250) Exceptional items - (513) - 280 (233) Net (expenditure) /income after (30) (520) 11 56 (483) exceptional items Actuarial gain on defined benefit scheme - - - 193 193 Net movement in funds (30) (520) 11 249 (290) Funds brought forward 38 1,919 454 (356) 2,055 Funds carried forward 8 1,399 465 (107) 1,765

Balance Sheet Fixed assets 8 1,173 57 1,121 2,359 Current assets 7,428 630 422 347 8,827 Creditors – amounts falling due (7,358) (204) (14) (346) (7,922) within one year Creditors – amounts falling due (70) (200) - - (270) after one year Pension scheme liability - - - (1,229) (1,229) Net assets/(liabilities) 8 1,390 465 (107) 1,765 The income in the tables above includes the grants received from RNIB, which are eliminated in the consolidated numbers.

101 Results for the year ended 31 March 2019 of the subsidiaries of RNIB operating under association agreements

RNIB Charity CIB (Trading BucksVision RNIB Total 2019 £’000 as Sight Life) £’000 Specialist £’000 £’000 Learning Trust £’000 Income and Expenditure Total income 20,167 793 369 1,603 22,932 Total expenditure (20,182) (490) (367) (1,974) (23,013) Net (expenditure) /income (15) 303 2 (371) (81) Actuarial gain/(loss) on defined - - - 210 210 benefit scheme Net movement in funds (15) 303 2 (161) 129 Funds brought forward 53 1,616 452 (195) 1,926 Funds carried forward 38 1,919 454 (356) 2,055

Balance Sheet Fixed assets Current assets 38 1,713 66 1,185 3,002 Creditors – amounts falling 11,874 640 408 205 13,127 due within one year Creditors – amounts falling (11,804) (149) (20) (393) (12,366) due after one year Pension scheme liability (70) (285) - - (801) Net assets - - - (1,353) (1,353) 38 1,919 454 (356) 2,055

The income in the tables above includes the grants received from RNIB, which are eliminated in the consolidated numbers.

102 RNIB Charity delivers care and BucksVision provides services for RNIB also has a further seven educational services across the UK, blind and partially sighted people wholly owned subsidiaries. These funded by a grant from RNIB. RNIB in Buckinghamshire. BucksVision are RNIB Enterprises Limited, RNIB provides the fundraising service, became a subsidiary charity of Services Limited, National Library with net fundraising receipts being Action on 1 July 2014. RNIB has paid for the Blind (NLB), Blind Centre restricted for RNIB Charity. The a grant to BucksVision in the year of for Northern Ireland (BCNI), RNIB sum of such grants amounted £0.23 million (2019: £0.2 million). Direct Services Lottery Limited, RNIB to £3.7 million in the year (2019: Feel Good Friday Lottery Limited £5.0 million). As a result of the RNIB Specialist Learning Trust is and MPH Accessible Media Limited. organisation restructure all non- an Academy Trust which has taken RNIB Enterprises Limited holds the regulated services were transferred responsibility for Three Spires controlling interest in RNIB Business to RNIB as of 1 April 2017. Some School in Coventry in September Services LLP; the remaining interest activities within RNIB Charity have 2013 which provides education for is held by MPH Accessible Media been included as discontinuing primary age pupils with special Limited. The Glynn Vivian Home operations in the SoFA. The educational needs. No financial of Rest for the Blind (Glynn Vivian) income at £13.3m comprises of support was given to the Trust. The was closed and removed from the £2.3m continuing operations and Trust’s year end is 31 August and so Charity Commission register on £11.0m discontinuing operations. the consolidation is on the basis of 31 December 2019. Expenditure at £13.3m comprises management accounts. As at 1 April of £1.3m continuing operations and 2020 ownership of the Academy £12.0m discontinuing operations. transferred to The Thrive Partnership and as such income and expenditure CIB (trading as Sight Life) provides in included within discontinuing a wide range of services to blind operations in the SoFA. and partially sighted people within Cardiff and the Vale of Glamorgan. RNIB provides the fundraising service, with net fundraising receipts being restricted for CIB. The sum of such grants amounted to £145,000 in the year (2019: £514,000).

103 Results for the year ended 31 March 2020 of other subsidiaries, all of which are continuing

RNIB Enterprises RNIB Action Feel Direct NLB BCNI NTNM RNIB MPH Total Limited £’000 Ser- for Good Services £’000 £’000 £’000 Business £’000 2020 vices Blind Friday Lottery Services £’000 Limited People Lottery £’000 LLP £’000 £’000 £’000 £’000

Income and Expenditure Total income 12,210 1,305 6,073 7,217 3,461 363 1 239 - - 30,869 Total (9,807) (1,304) (8) (4,894) (2,522) (5) - - - - (18,540) expenditure Net income 2,403 1 6,065 2,323 939 358 1 239 - - 12,329 Amount gifted/ (2,403) (1) (6,065) (2,323) (939) (358) (1) (239) - - (12,329) covenanted to RNIB Net movement ------in funds Funds brought 5 ------10 - 15 forward Funds carried 5 ------10 - 15 forward

Balance Sheet Investment 10 ------10 Current assets 9,706 355 948 142 66 76 18 340 10 - 11,661 Creditors – amounts (9,711) (355) (948) (142) (66) (76) (18) (340) - - (11,656) falling due within one year Net assets 5 ------10 - 15

104 Results for the year ended 31 March 2019 of other subsidiaries

RNIB Enterprises RNIB Action Feel Direct NLB BCNI NTNM RNIB MPH Total Limited Services for Good Services £’000 £’000 £’000 Business £’000 2019 £’000 Limited Blind Friday Lottery Services £’000 £’000 People Lottery £’000 LLP £’000 £’000 £’000

Income and Expenditure Total income 11,152 2,431 7,322 3,421 2,208 204 45 185 - - 26,968 Total (9,790) (2,427) (9) (2,650) (1,296) (2) - (2) - - (16,176) expenditure Net income/ 1,362 4 7,313 771 912 202 45 183 - - 10,792 (expenditure) Amount gifted/ (1,362) (4) (7,313) (771) (912) (202) (45) (183) - - (10,792) covenanted to RNIB Net movement ------in funds Funds brought 5 ------10 - 15 forward Funds carried 5 ------10 - 15 forward

Balance Sheet Investment 10 ------10 Current assets 6,516 10,649 972 3,015 1,525 148 17 126 10 - 22,978 Creditors – amounts (6,521) (10,649) (972) (3,015) (1,525) (148) (17) (126) - - (22,973) falling due within one year Net assets 5 ------10 - 15

105 RNIB Enterprises Limited carries RNIB Direct Services Lottery MPH was acquired as a going out trading activities that include Limited carries out the raffles and concern on 1 October 2015 by RNIB. transcription, consultancy and lottery activities within fundraising. Its activities and net assets (except training services to businesses and property) were transferred to sales of principally sight-loss related NLB exists as a shell charity to RNIB Charity on 1 December 2015. retail products to individuals. An £0.2 receive donations and legacies, which The property was transferred to million (2019: £0.2 million) facility are transferred to RNIB to be ring- RNIB Group. Therefore, there is no remains available to RNIB Enterprises fenced for the RNIB National Library disclosure in the tables above. Limited and if called upon would be Service. made by RNIB to cover the working RNIB Enterprises Limited is one of capital requirements. BCNI exists as a shell charity to two corporate members of RNIB receive donations and legacies, which Business Services LLP. The Limited RNIB Services Limited administers are transferred to RNIB to be ring- Liability Partnership was set up RNIB’s school fees. fenced for RNIB Northern Ireland. to work in partnership with MPH Accessible Media Limited to provide Action For Blind People exists as a NTNM exists as a shell charity to services to the commercial and shell charity to receive donations and receive donations and legacies, which public sectors both in the UK and legacies, which are transferred to RNIB are transferred to RNIB to be ring- internationally. On 1 October 2015, to be ring-fenced for related services. fenced for the talking newspapers RNIB acquired the shares of MPH and RNIB provides the fundraising service, and magazine service. as a result the activities of the LLP with net fundraising receipts being were wound down in 2016. restricted for Action. Glynn Vivian was closed and removed from the Charity RNIB Feel Good Friday Lottery Commission register on 31 December Limited carries out the raffles and 2019. RNIB was the sole corporate lottery activities within fundraising. Trustee and on the grounds of control Glynn Vivian had previously been consolidated within the financial statements of the RNIB Group.

106 A summary of the financial results and balance sheet for all RNIB subsidiaries is as follows:

Total 2020 Total 2019 £’000 £’000 Total income 47,411 49,900 Total expenditure (35,332) (39,189) Net income/(expenditure) before exceptional items 12,079 10,711 Exceptional items (233) Net income/(expenditure) after exceptional items 11,846 Actuarial gain on defined benefit pension scheme 193 210 Amount gifted/covenanted to RNIB (12,329) (10,792) Net movement in funds (290) 129 Funds brought forward 2,070 1,941 Funds carried forward 1,780 2,070

Total 2020 Total 2019 £’000 £’000 Fixed assets 2,369 3,012 Current assets 20,488 36,105 Creditors – amounts falling due within one year (19,578) (34,893) Creditors – amounts falling due after one year (270) (801) Pension scheme liability (1,229) (1,353) Net assets 1,780 2,070

The total net assets of the subsidiary charities and other subsidiaries as at 31 March 2020 amounting to £1.8 million (2019: £2.1 million) are held within the Group restricted and endowment funds as detailed in note 21.

107 4. Expenditure – Group

2020 Unrestricted Restricted Endowment Support Total direct costs direct costs direct costs costs £’000 £’000 £’000 £’000 £’000 Raising funds 12,170 - - 2,397 14,567 Trading activities 14,761 - - 2,461 17,222 Charitable activities Equip blind and partially sighted people to thrive – National Sight Loss 11,589 4,607 - 5,560 21,756 Advice Service Equip blind and partially sighted 959 15,075 - 4,117 20,151 people to thrive – Regulated Services Equip blind and partially sighted 4,954 3,123 36 2,099 10,212 people to thrive – Other Connect our community 2,336 1 - 491 2,828 Change society 5,127 100 - 903 6,130 Total charitable activity costs 24,965 22,906 36 13,170 61,077 Total expenditure 51,896 22,906 36 18,028 92,866

Support costs of £18 million are split between continuing operations £14 million and discontinuing operations £4 million.

108 2019 Unrestricted Restricted Endowment Support Total £’000 direct direct direct costs £’000 (Re‑classified) costs £’000 costs £’000 costs £’000 (Re‑classified) (Re‑classified) (Re‑classified) (Re‑classified) Raising funds 8,670 - - 2.853 11,523 Trading activities 11,529 - - 4,014 15,543

Charitable activities Equip blind and partially sighted people to thrive – National Sight 21,063 583 - 4,110 25,756 Loss Advice Service Equip blind and partially sighted people to thrive – Regulated 1,844 22,235 - 4,013 28,092 Services Equip blind and partially sighted 9,280 1,040 36 2,017 12,373 people to thrive – Other Connect our community 1,610 1,122 - 683 3,415 Change society 4,816 145 - 778 5,739 Total charitable activity costs 38,613 25,125 36 11,601 75,375 Total expenditure 58,812 25,125 36 18,468 102,441

The 2019 figures relating to the split of charitable income and expenditure have been reclassified following a review of activities within the priorities this year.

109 5. Support costs allocation

2020 HR & Finance & Information Legal Property Other Gov- Total Volun- Procurement Technology Services Services £’000 ernance £’000 teering £’000 £’000 £’000 £’000 £’000 £’000 Raising funds 570 280 984 44 110 310 99 2,397 Trading activities 245 595 420 92 234 659 216 2,461

Charitable activities Equip blind and partially sighted people to thrive – 1,225 630 1,871 97 300 1,221 216 5,560 National Sight Loss Advice Service Equip blind and partially sighted 939 534 1,551 82 210 591 210 4,117 people to thrive – Regulated Services Equip blind and partially sighted 244 441 545 68 174 488 139 2,099 people to thrive – Other Connect our 38 88 191 14 35 97 28 491 community Change society 100 194 226 30 77 215 61 903 Total charitable 2,546 1,887 4,384 291 796 2,612 654 13,170 activity costs Total support 3,361 2,762 5,788 427 1,140 3,581 969 18,028 expenditure

110 2019 HR & Vol- Finance Infor- Legal Ser- Property Other Gov- Total unteer- & Pro- mation vices Servic- £’000 ernance £’000 ing £’000 curement Technolo- £’000 es £’000 (Re- £’000 (Re- (Re- £’000 gy £’000 (Re- (Re- classified) (Re- classified) classified) (Re- (Re- classified) classified) classified) classified) classified) Raising funds 608 431 894 84 153 530 153 2,853 Trading activities 855 606 1,259 118 215 746 215 4,014

Charitable activities Equip blind and partially sighted people to thrive – 875 621 1,288 122 220 764 220 4,110 National Sight Loss Advice Service Equip blind and partially sighted 855 606 1,258 118 215 746 215 4,013 people to thrive – Regulated Services Equip blind and partially sighted 430 305 632 59 108 375 108 2,017 people to thrive – Other Connect our 145 103 214 20 37 127 37 683 community Change society 166 117 244 23 42 144 42 778 Total charitable 2,471 1,752 3,636 342 622 2,156 622 11,601 activity costs Total support 3,934 2,789 5,789 544 990 3,432 990 18,468 expenditure

111 Basis of allocation: 6. Governance costs • Human resources – Headcount Group Group RNIB RNIB 2020 2019 2020 2019 • Volunteering – Number of £’000 £’000 £’000 £’000 volunteers Auditors’ remuneration • Finance and procurement – Fees payable to the charity’s auditors and their associates for the audit of Expenditure 153 314 153 314 the parent charity and the Group’s • Information and technology consolidated financial statements* services – Number of workstations Audit of the charity’s subsidiaries* 85 116 - - Audit-related assurance services* 4 3 4 3 Legal Services – Expenditure • Total amount payable to the charity’s 242 433 157 317 auditors and their associates • Property services – Floor space Internal audit 163 60 163 60 • Other and Governance (including Strategy and Performance, Group Audit fees – non BDO LLP 131 11 121 - Support) – Expenditure Trustees’ expenses 5 4 5 4 Costs incurred in running the Chair’s 31 33 31 33 The 2019 figures relating to the office split of charitable income and International activity – including expenditure have been reclassified - 66 - 66 World Blind Union following a review of activities within the priorities this year. General costs incurred in servicing RNIB’s corporate committees and the 397 383 74 168 statutory affairs of RNIB Total governance costs 969 990 551 648

* Excluding VAT Included within the audit fees – non BDO LLP is £121,000 relating to additional fees relating to the 2019 audit. In the prior year included within the audit fees payable to the charity’s auditors and their associates for the audit of the parent charity and the Group’s consolidated financial statements is £226,000 relating to additional fees relating to the 2018 audit.

112 7. Taxation 8. Group employee remuneration The reduction in the DB pension RNIB is a registered charity and is The average monthly number of cost and the increase in the DC thus exempt from tax on income and employees during the year was 1,670 pension contributions is due to the gains falling within sections 478–489 (2019: 1,802), of which, the average Final Salary section of the RNIB of the Corporation Tax Act 2010 or full-time equivalent was 1,353 (2019: Retirement Benefits Scheme closing s256 of the Taxation of Chargeable 1,523). The total emoluments are to future accruals on 31 March 2019. Gains Act 1992 to the extent that analysed as shown below: On-going benefits are provided in a these are applied to its charitable new “Defined Contribution” section objects. No (2019: nil) tax charge to the Scheme provided by Legal arises in any of the non-charitable & General. Further information can subsidiary entities included in the be found in note 23. Group financial statements due to their policy of gifting all taxable Included in the total emoluments profits to their parent each year. figures above are payments amounting to £0.45 million made to 73 2020 2019 members of staff (2019: £0.9 million to £’000 £’000 269 members of staff) on termination of employment. These costs have been Salary costs 39,818 44,797 incurred as part of a programme of Employer’s NI contributions 3,505 4,018 work to implement our strategy and Current service cost on DB Pension 77 4,905 ensure we have the right people with the right skills to effectively meet the Employer’s DC pension contributions 5,318 1,405 needs of our customers. Total ongoing emoluments 48,718 55,125 Redundancy and termination costs 422 759 Where redundancy, termination and Ex-gratia payments 31 182 compensation payments were made, payments were based on service. Total emoluments 49,171 56,066 These payments are managed by the Human Resources department in line with policy and procedures and authorised according to the scheme of delegation based on size of payment.

113 Ex-gratia payments were included within settlement agreements made with 7 employees (2019: 15)

The following numbers of employees received total emoluments within the bands shown. Emoluments include salaries, fees, redundancy payments, amounts in lieu of notice and the estimated money value of any other benefits, received otherwise than in cash, and exclude employer pension costs. The column entitled 2020 no longer employed contains staff who left during the year or who were under notice of redundancy at 31 March 2020.

2020 no longer 2020 still 2020 total 2019 total employed employed number number number number Between £60,001 and £70,000 - 17 17 16 Between £70,001 and £80,000 1 3 4 10 Between £80,001 and £90,000 - 3 3 6 Between £90,001 and £100,000 - 1 1 2 Between £100,001 and £110,000 - 2 2 - Between £110,001 and £120,000 - 1 1 1 Between £140,001 and £150,000 - 1 1 1 Between £160,001 and £170,000 - - - 1

114 There is no one (2019: 7 persons) RNIB made payments on behalf of 9. RNIB Trustees’ expenses disclosed in the bandings above 33 (2019: 37) higher paid employees and related party transactions where individuals received a in respect of the RNIB Retirement A number of Trustees bear the cost payment on the termination of Benefit Scheme and the Legal and of attending meetings themselves. employment. General Scheme as well as NEST, Trustees receive no benefits from and there were payments made the Group except as users of our The RNIB Group was led by the to 3 (2019:23) members of staff in services and as described below. Executive Leadership Team consisting respect of the defined contribution Most Trustees of RNIB Group sit of the CEO and four employed element of the RNIB Retirement on a number of RNIB Committees, Directors, and four contracted Benefits Pension Scheme. The total Steering Groups and/or school Interim Directors. The Executive amount of employer contributions governing bodies in addition to Leadership Team are regarded as the paid in respect of these employees their charity’s Board. As such, most Charity’s key management personnel was £0.3 million (2019: £0.3 million). Trustees need to travel to RNIB’s under the Financial Reporting London office on multiple occasions Standard 102. A fuller explanation Staff can claim reimbursement of throughout the year. can be found in the ‘How we are expenditure incurred by them in the managed’ section of this report. course of undertaking business on A total of £799 was paid to or on behalf of RNIB. Expenses are claimed behalf of 12 Trustees of the Charity The total earnings, including benefits against a set policy and guidelines, as reimbursement of travel and and employer pension contributions are independently authorised and subsistence expenses incurred in received by staff who were members are not regarded as part of the attending meetings (2019: £1,621 to of the Executive Leadership Team employee’s emoluments. 13 Trustees). during 2019/20, totalled £0.6 million (2019: £0.9 million). Travel, lunches and overnight stays for meetings cost a further £4,190 (2019: £2,482).

115 Eleanor Southwood became Chair of of £1,597 owing to them as at year- Neil Beckingham, Director of Digital RNIB in November 2017. During the end. Mike is a Trustee and Director Development, is also Non-Executive 2019/20 financial year she received of Shaw Trust from whom RNIB Director of the Digital Accessibility a salary of £26,000 in respect of received invoices totalling £383, with Centre, from whom RNIB received carrying out her duties as Chair of £113 owing to them as at year-end. invoices totalling £7,644 and at 31 RNIB. Eleanor is also Trustee for RNIB did make payments to Shaw March 2020 owed £5,400 to it. RNIB Vision 2020 UK, from whom RNIB Trust totalling £817, £434 of which Enterprises raised an invoice to the received invoices totalling £5,000 related to previous years. RNIB Group Digital Accessibility Centre totalling during the financial year. RNIB raised raised invoices to the total of £44,732. £1,732, which was paid during the invoices to Vision 2020 UK totalling As at 31 March 2020 there was an financial year. £3,279 during the year and as at 31 unallocated payment from Shaw Trust March 2020 a total of £41 was owing totalling £4,573. Mike Nussbaum is During the year, a total of £2,365 was to RNIB. Eleanor is also an Elected also a Trustee for Vision 2020 UK Ltd, donated to RNIB from five Trustees Councillor for London Borough RNIB received invoices totalling £5,000 (2019: £1,188 from seven trustees). of Brent, to whom RNIB Group from Vision 2020 UK Ltd, RNIB raised raised invoices totalling £400, RNIB invoices to Vision 2020 UK totalling The RNIB Group enters a Services raised invoices for the total £3,279, as at 31 March 2020 a total of comprehensive range of insurance of £662,323 and credits totalling £41 was owing to RNIB. policies to protect Trustees, officers £449,384 during the financial year, and employees against losses and at the close of business on the 31 Amanda Rowland, a Trustee of legal liabilities arising from neglect March 2020, £5,000 was still owing RNIB Group, is also a Member of or default in the course of business. to RNIB Services. The Macular Society to whom RNIB Total premiums for these policies Enterprises raised invoices in the amounted to £24,125 (2019: £26,589). Mike Nussbaum, a Trustee of RNIB financial year totalling £524, as at 31 Group and a Trustee of Action for March 2020 there was an unallocated Blind People, is also a Trustee of Guide payment of £157. Dogs for the Blind Association from which the RNIB Group has received Sophie Castell, Director of invoices totalling £11,146 during the Relationships, is also a Trustee of financial year. The RNIB group raised The National Autistic Society, during invoices for Guide Dogs totalling the financial year they invoiced RNIB £428,744, within the financial year £6,963 and as at 31 March 2020 RNIB with £68,460 owing to them as at owed £40. RNIB Enterprises raised the year-end. RNIB Enterprises, also invoices to the National Autistic raised invoices in the year for Guide Society during the financial year dogs totalling £21,699 and an amount totalling £61.

116 10. Grants payable Grants payable in the year amount to £150,000 (2019: £132,000) with 3 (2019: nil) grants of £5,000 (2019: £5,000) or above, amounting to £28,000 (2019: £nil). In addition, around 279 (2019: 275) small grants at an individual value of less than £5,000 (2019: £5,000) were made.

2020 2019 £’000 £’000 Daisy Music Braille Project 13 - Royal Northern College of Music 5 - Dolphin Assistive Technology 10 - Other grants – all under £5,000 122 132 Total grants payable 150 132

117 11. Total movements of funds in the year is stated after charging

2020 2019 £’000 £’000

Auditors’ remuneration Fees payable to the charity’s auditors and their associates for the audit of the 153 314 parent charity and the Group’s consolidated financial statements* Audit of the charity’s subsidiaries* 85 116 Audit-related assurance services* 4 3 Total amount payable to the charity’s auditors and their associates 242 433

Audit fees – non BDO LLP 131 11 Operating lease payments – other 1,917 1,702 Foreign exchange losses/(gains) 11 38 Depreciation charge – tangible fixed assets 2,719 2,459 Amortisation charge – intangible fixed assets 1,093 1,520 Impairment/(reversal of impairment) on tangible fixed assets ** 513 (1,226) Loss/(Profit) on disposal of fixed assets 72 (413)

* Excluding VAT

** The current year impairment on tangible fixed assets included a loss of £513,000 relating to the property at Jones Court, Cardiff (2019: £3,126,000 gain relating to an increase in the value of the property at RNIB Pears Centre to uplift the value to expected sale proceeds. There was also a reduction of £1,900,000 relating to the value of property at Bradbury Oak).

118 12. Tangible assets Group Service Service prop- Machinery, Machinery, vehi- Assets un- Total proper- erties vehicles and cles and equip- der con- £’000 ties held for sale equipment ment held for sale struction £’000 £’000 £’000 £’000 £’000 Cost Balance 1 April 2019 87,554 11,506 7,929 943 3,648 111,580 Additions 91 - 133 12 388 624 Elimination on disposal (27,057) - (505) (7) - (27,569) Balance 31 March 2020 60,588 11,506 7,557 948 4,036 84,635 Accumulated depreciation Balance 1 April 2019 31,712 4,329 6,497 804 - 43,342 Charge for year 1,054 207 604 95 - 1,960 Elimination on disposal (16,707) - (487) (7) - (17,201) Impairment provision 513 - - - - 513 Balance 31 March 2020 16,572 4,536 6,614 892 - 28,614 Net book value 31 March 2020 44,016 6,970 943 56 4,036 56,021 Net book value 31 March 2019 55,842 7,177 1,432 139 3,648 68,238

RNIB has entered into a sale and September 2019. The construction as assets under construction in the development agreement with value of the buildings is estimated table above. As individual properties Countryside Properties (UK) Limited at £9.5million. In return, the are handed over to RNIB, costs will relating to land and buildings at Redhill developer will be given land for the transfer to Service properties. The College, Redhill, Surrey owned by RNIB. construction and sale of 77 private accounting recognition of the profit dwellings. The net book value of share cash will take place over the Over the period from late 2019 to the Redhill land and buildings at forthcoming years, as the legal May 2021, RNIB is entitled to receive 31 March 2020 is £3.3million. transfer of development land takes payment of at least £5.5million, place. As the land relating to the 25 residential dwellings, a community At the end of the financial year, first two phases of the development hub, and the refurbished Tudor the work in progress relating to the transferred in September 2019 an House. The first tranche of the cash RNIB retained assets totalled £4.0 amount of £5.9million relating to the amounting to £1.1m was received in million (2019: £3.6million), shown profit share has been recognised.

119 RNIB Service Service Machinery, Machinery, Assets under Total properties properties vehicles and vehicles and construction £’000 £’000 held for sale equipment equipment £’000 £’000 £’000 held for sale £’000 Cost Balance 1 April 2019 86,420 10,226 5,936 402 3,648 106,632 Additions 91 - 133 12 388 624 Elimination on disposal (27,057) - (407) (7) - (27,471) Balance 31 March 2020 59,454 10,226 5,662 407 4,036 79,785

Accumulated depreciation Balance 1 April 2019 32,308 4,186 4,517 335 - 41,346 Charge for year 1,025 181 599 40 - 1,845 Elimination on disposal (16,707) - (399) (7) - (17,113) Balance 31 March 2020 16,626 4,367 4,717 368 - 26,078 Net book value 31 March 2020 42,828 5,859 945 39 4,036 53,707 Net book value 31 March 2019 54,112 6,040 1,419 67 3,648 65,286

Service properties are used to provide services to blind and partially sighted people. Of the net book value of property used by the Group, £23.1 million (2019: £33.5 million) represents freehold land and property, £25.8 million (2019: £26.4 million) represents leaseholds of more than 50 years while £0.2 million (2018: £0.3 million) represents leaseholds of less than 50 years.

The net book values of fixed assets of the subsidiary charities are held within the restricted funds as set out in note 21.

120 13. Intangible assets

Group and RNIB Software Development £’000 Cost Balance 1 April 2019 4,808 Additions 1,886 Balance 31 March 2020 6,694

Accumulated amortisation Balance 1 April 2019 3,426 Charge for year 1,093 Balance 31 March 2020 4,519 Net book value 31 March 2020 2,175 Net book value 31 March 2019 1,382

14. Investments

Group RNIB Fixed Asset Investments £’000 Fixed Asset Investments £’000 Market value at 1 April 2019 7,881 7,836 Acquisitions at cost - - Disposal proceeds - - Net loss on revaluation (553) (548) Market value at 31 March 2020 7,328 7,288 Historical cost at 31 March 2020 4,657 4,514

121 Fixed Asset Investments Market value Market value Market value Market value 2020 Group 2020 RNIB 2019 RNIB 2019 Group £’000 £’000 £’000 £’000 UK quoted unit trusts 5,473 5,741 5,428 5,691 UK unquoted equity shares - - 5 5 Property 1,855 2,140 1,855 2,140 Market value at 31 March 7,328 7,881 7,288 7,836 Historical cost at 31 March 4,657 4,657 4,514 4,514

Within the portfolio of quoted investments, the following holdings for RNIB Group exceed five per cent of the total market value of the fund:

2020 2020 2019 2019 £’000 Per cent £’000 Per cent F&C Responsible Sterling Fund formerly 3,122 57.7 3,151 54.9 Ethical Bond Share Class 2 (Emma Nye) F&C Responsible Sterling Fund formerly 586 10.8 592 10.3 Ethical Bond Share Class 2 (Dr Duncan Leeds) F&C Responsible UK Income Fund Share Class 573 10.6 702 12.2 2 (Dr Duncan Leeds) F&C Responsible Sterling Fund formerly Ethical Bond Share Class 2 326 6.1 329 5.7 (Elizabeth Eagle Bott) F&C Responsible UK Income Fund Share 319 5.9 391 6.8 Class 2 (Elizabeth Eagle Bott)

122 15. Stocks and work in progress

Group Group RNIB RNIB 2020 2019 2020 2019 £’000 £’000 £’000 £’000 Finished goods for resale 850 900 4 125 Raw materials and consumables 138 91 - - Total 988 991 4 125

Included in figures above is a slow-moving stock provision of £171,000 (2019: £101,000) in respect of finished goods for resale and £116,000 (2019: £105,000) in respect of raw materials and consumables.

16. Debtors

Group Group RNIB RNIB 2020 2019 2020 2019 £’000 £’000 £’000 £’000 Trade debtors 2,425 3,619 501 830 Amounts owed by Group undertakings - - 10,572 17,999 Other debtors 1,612 1,838 1,418 1,575 Legacy accrued income 19,128 23,260 17,952 22,169 Prepayments and accrued income 3,175 2,407 2,290 1,532 Total 26,340 31,124 32,733 44,105

The Group and RNIB has been notified of further legacies amounting to £12.1 million (2019: £8.3 million), which have not been recognised as income at 31 March 2020 because the conditions of the accounting policy for legacies have not been met. When these conditions are met these amounts will be included in future years.

123 17. Creditors: amounts falling due within one year

Group Group RNIB RNIB 2020 2019 2020 2019 £’000 £’000 £’000 £’000 Trade creditors 2,513 2,522 1,952 2,071 Bank overdraft - 87 - - Obligations under bank loans 80 1,091 80 1,091 Interest rate swap - 662 - 662 Net obligations under finance leases - 93 - 93 Amounts related to assets under construction - 3,648 - 3,648 Taxes and social security costs 1,159 1,248 734 800 Amounts owed to Group undertakings - - 6,675 10,524 Other creditors 1,325 2,605 679 1,052 Accruals 2,788 3,563 2,263 2,864 Deferred income 232 143 100 55 Total 8,097 15,662 12,483 22,860

All of the deferred income will be recognised within the year.

The finance leases primarily related to printing equipment used in the Group’s production operations and iPads that are available for customers to allow pupils better access to learning materials via RNIB’s Bookshare service. There are no contingent rental, renewal or purchase option clauses.

At the year end, RNIB had an unsecured revolving credit facility with NatWest Bank with a maximum limit of £15 million (2019: £6 million) with an expiry date of 12 June 2021. This facility has nil drawn down (2019: nil).

124 18. Creditors: amounts falling due after more than one year

Group Group RNIB RNIB 2020 2019 2020 2019 £’000 £’000 £’000 £’000

Net obligations under finance leases are payable as follows Between one and two years - 59 - 59 Between two and five years - 46 - 46

Obligations under bank loans are payable as follows Between one and two years 43 1,091 43 1,091 Between two and five years - 3,046 - 3,046 More than five years - 11,000 - 11,000 Interest rate swap Between one and two years - 608 - 608 Between two and five years - 1,920 - 1,920 More than five years - 624 - 624

Defined Benefit Pension Exit Payment Between one and two years 71 71 - - Between two and five years 129 214 - - Total 243 18,679 43 18,394

In December 2019, partly using proceeds from the sale of The RNIB Pears Centre, RNIB repaid a mortgage loan which had £15.5 million capital outstanding and terminated a corresponding interest rate swap.

125 19. Provisions for liabilities and charges

Group Balance at Charged to Spent Released Balance at 1 April 2019 income and £’000 during the 31 March £’000 expenditure year 2020 £’000 £’000 £’000 Dilapidations on leases 417 - - 1 416 Redundancy and termination costs 53 290 53 - 290 Potential taxation costs 667 425 410 - 682 Gift aid provision - 358 - - 358 Sleep in provision 70 - - - 70 1,207 1,073 463 1 1,816

RNIB Balance at Charged to Spent Released Balance at 1 April 2019 income and £’000 during the 31 March £’000 expenditure year 2020 £’000 £’000 £’000 Dilapidations on leases 417 - - 1 416 Redundancy and termination costs 53 290 53 - 290 Potential taxation costs 667 425 410 - 682 Gift aid provision - 358 - - 358 1,137 1,073 463 1 1,746

The provision for potential taxation costs relates to a liability relating to VAT that has been recovered in relation to RNIB’s Lottery fundraising activities. A payment of £410,000 was made to HMRC during the year. The balance will be paid in the financial year ending 31 March 2021.

126 20. Financial instruments RNIB has the following financial instruments: Note Group Group RNIB 2020 RNIB 2019 2020 2019 £’000 £’000 £’000 £’000

Financial assets at fair value through statement of financial activities long-term investments 14 7,328 7,881 7,288 7,836

Financial assets that are debt instruments measured at amortised cost trade debtors 16 2,425 3,619 501 830 amounts owed by group undertakings 16 - - 10,572 17,999 other debtors 16 1,612 1,838 1,418 1,575 legacy accrued income 16 19,128 23,260 17,952 22,169 other accrued income 16 2,316 1,743 1,707 946

Financial liabilities measured at fair value through statement of financial activities derivative financial instruments: interest rate swap 17/18 - 3,814 - 3,814 Financial liabilities measured at amortised cost secured short-term debt 17 80 1,091 80 1,091 secured long-term debt 17/18 - 15,000 - 15,000 MPH secured and unsecured mortgages 17/18 43 136 43 136 finance leases 17/18 - 198 - 198 unsecured short-term loan 17 - 1,000 - 1,000 bank overdraft 17 - 87 - - trade creditors 17 2,513 2,522 1,952 2,071 taxes and social security costs 17 1,159 1,248 734 800 other creditors 17 1,325 2,605 679 1,052 amounts owed to group undertakings 17 - - 6,675 10,524

127 Note Group Group RNIB 2020 RNIB 2019 2020 2019 £’000 £’000 £’000 £’000

amounts related to assets under construction 17 - 3,648 - 3,648 accruals 17 2,788 3,563 2,263 2,864 deferred income 17 232 143 100 55 provisions for liabilities and charges 19 1,816 1,207 1,746 1,137

128 21. Group/RNIB statement of funds for year ended 31 March 2020 Designated Funds

1 April Income Expenditure Transfers Other Gains 31 March 2019 £’000 £’000 £’000 £’000 2020 £’000 £’000 Net book value – Service properties 40,112 - (1,206) 13,656 38 52,600 Net book value – Other fixed assets 2,867 - (1,731) 2,023 - 3,159 Total designated – Group and RNIB 42,979 - (2,937) 15,679 38 55,759

Net book value – service properties: Net book value – other fixed The purpose is to recognise the assets: The purpose is to recognise value, net of long-term debt, of the value, net of long-term debt, RNIB’s service properties that are of RNIB’s other fixed assets that unavailable to general reserves. The are unavailable to general reserves. transfer of £13,656,000 comprises Such other fixed assets held in the additions amounting to £4,127,000, subsidiary charities are recognised of which £4,036,000 relates to the within the restricted funds. The Redhill asset under construction transfer of £2,023,000 comprises less £10,351,000 of disposals. There additions amounting to £2,030,000 has also been reduction in the long- less the net book value of disposals term debt of £19,776,000 relating to of £7,000. the loan repayment regarding the redevelopment at RNIB Pears Centre and a reduction in the loan relating to the assets acquired from MPH of £104,000. Included in other gains/ (losses) is £38,000 reduction in the value of the interest rate swap on repayment relating to the RNIB Pears Centre sale. Such fixed asset properties held in the subsidiary charities are recognised within the restricted funds.

129 Total unrestricted funds

1 April Income (including Expendi- Transfers Other Gains 31 March 2019 investment gains/ ture £’000 £’000 £’000 2020 £’000 £’000 losses) £’000 Designated from above 42,979 - (2,937) 15,679 38 55,759

General funds (free reserves) 32,779 47,488 (36,125) (18,469) - 25,673 Pension reserve (1,297) - 7 2,939 21,357 23,006 Total other unrestricted 31,482 47,488 (36,118) (15,530) 21,357 48,679

Action - 6,073 (6,073) - - - Feel Good Friday Lottery - 7,217 (7,217) - - - Direct Services Lottery - 3,461 (3,461) - - - RNIB Enterprises Limited - 12,210 (12,210) - - - RNIB Services Limited - 1,305 (1,305) - - - NLB - 363 (363) - - - NTNM - 239 (239) - - - BCNI - 1 (1) - - - Total unrestricted – 74,461 78,357 (69,924) 149 21,395 104,438 RNIB and Group

130 Restricted funds

1 April Income Expenditure Transfers Other 31 March 2020 2019 (including £’000 £’000 gains £’000 £’000 investment £’000 gains/losses) £’000 Emma Nye fund welfare pensions 369 73 (120) - - 322 Dr Duncan Leeds Bequest 61 44 (92) - - 13 Elizabeth Eagle-Bott Memorial 25 25 (31) - - 19 Fund Donations for specified services 2,684 7,656 (6,872) (96) - 3,372 and equipment

The National Lottery Community Fund AdvantAGE – Wales Eye Patient 5 - - - - 5 Advocacy Service Continuation Supporting Families – 52 139 (128) - - 63 Family Insight Bright New Futures – 15 - 3 (18) - Future In‑Sight Reaching Communities – Talk and Support: Supporting our 11 - (10) (1) - - Volunteers through Mentoring People & Places – All Wales Welfare Rights Service for People with 5 - - - - 5 Sensory Loss Basic Online Skills – Online Today 4 - (7) 3 - - Investing in Communities – IRISS 43 - (43) - - 0 Investing in Communities – 95 82 (151) - - 26 Advice Plus – See Me Right

131 1 April Income Expenditure Transfers Other 31 March 2020 2019 (including £’000 £’000 gains £’000 £’000 investment £’000 gains/losses) £’000 Reaching Communities – 38 - (1) (37) - - Big Skills Pilot Reaching Communities – Being 59 36 (95) - - - There When It Matters Most Our Bright Future – Vision England 25 - (25) - -

Department of Health and Social Care Sight Loss Booklet – 3 - - (3) - - What I Needed To Know Total restricted – RNIB 3,494 8,055 (7,572) (152) - 3,825

RNIB Charity 38 13,291 (13,324) 3 - 8 CIB 1,919 444 (965) - - 1,398 RNIB Specialist Learning Trust (356) 2,096 (2,040) - 193 (107) BucksVision 454 396 (385) - - 465 Total restricted – Group and RNIB 5,549 24,282 (24,286) (149) 193 5,589

Restricted fund balances may be in Other transfers between funds 2020 ownership of the Three Spires a deficit situation pending future represent transfers from unrestricted Academy transferred to the Thrive receipts where such funding is given funds to cover expenditure paid by Education Partnership, along with all on a reclaim basis and at 31 March unrestricted monies which relate to assets and liabilities as at the transfer 2020 such deficit balances amounted restricted fund income projects. date. The amounts included within to £63,000 (2019: £169,000), which “Group” represent the net assets at lies within “Donations for specified The negative funds relating to RNIB fair value of the subsidiary charities, services and equipment”. Specialist Learning Trust comprise other than those held within of fixed assets of £1,121,000, cash at endowment funds. bank of £1,000 offset by a pension liability of £1,229,000. As at 1 April

132 Endowment funds

1 April Income includ- Expenditure Transfers Other 31 March 2019 ing Investment £’000 £’000 gains 2020 £’000 gains/(losses) £’000 £’000 £’000 Sunshine 355 (21) (1) - - 333 Emma Nye 3,151 (8) (20) - - 3,122 Bristol Blind Fund 114 - (1) - - 113 Eagle-Bott Memorial 691 (67) (4) - - 619 Dr Duncan Leeds Bequest 1,294 (127) (8) - - 1,159 GDC Rushton 183 - (1) - - 182 Total endowment – RNIB 5,788 (224) (36) - - 5,528 CIB 1 - - - - 1 Total endowment – Group 5,789 (224) (36) - - 5,529 and RNIB

We apply a total return approach to The Sunshine Endowment Fund. In the year this resulted in the release of the unapplied total return amounting to £nil (2019: £nil) to general funds. Within the balance at 31 March 2020, the value of the gift element of the permanent endowment was £332,000 (2019: £323,000) and the unapplied total return was £9,000 (2019: £32,000).

133 Summary of funds

1 April Income Expenditure Transfers Other gains 31 March 2019 (including £’000 £’000 £’000 2020 £’000 investment £’000 gains/losses) £’000 RNIB Unrestricted 74,461 47,488 (39,055) 149 21,395 104,438 Restricted 3,494 8,055 (7,572) (152) - 3,825 Endowment 5,788 (224) (36) - - 5,528 Total 83,743 55,319 (46,663) (3) 21,395 113,791

Group Unrestricted 74,461 78,357 (69,924) 149 21,395 104,438 Restricted 5,549 24,282 (24,286) (149) 193 5,589 Endowment 5,789 (224) (36) - - 5,529 Total 85,799 102,415 (94,246) - 21,588 115,556

RNIB Income and Expenditure amounts are shown after eliminating intra group amounts.

134 Group/RNIB statement of funds for year ended 31 March 2019 Designated Funds 1 April Income Expenditure Transfers Other Gains 31 March 2018 £’000 £’000 £’000 £’000 2019 £’000 £’000 Net book value – Service properties 39,086 - (1,480) 1,067 1,439 40,112 Net book value – Other fixed assets 4,665 - (2,349) 551 - 2,867 Total designated – Group and RNIB 43,751 - (3,829) 1,618 1,439 42,979

Net book value – service properties: Net book value – other fixed assets: The purpose is to recognise the The purpose is to recognise the value, value, net of long-term debt, of net of long-term debt, of RNIB’s other RNIB’s service properties that are fixed assets that are unavailable to unavailable to general reserves. The general reserves. Such other fixed transfer of £1,067,000 comprises assets held in the subsidiary charities £24,000 of disposals together are recognised within the restricted with a reduction in the long-term funds. The transfer of £551,000 debt of £1,000,000 relating to comprises additions amounting to the loan repayment regarding the £554,000 less the net book value of redevelopment at RNIB Pears Centre. disposals of £3,000. There has also been a reduction in the loan relating to the assets acquired from MPH of £91,000. Included in other gains/(losses) is £3,126,000 relating to the increase in the value of the property at RNIB Pears Centre representing the market value relating to the disposal of the property, along with a reduction of £1,900,000 relating to the value of property at Bradbury Oak. Such fixed asset properties held in the subsidiary charities are recognised within the restricted funds.

135 Total unrestricted funds

1 April Income (including Expenditure Transfers Other Gains 31 March 2018 investment gains/ £’000 £’000 £’000 2019 £’000 £’000 losses) £’000 Designated from above 43,751 - (3,829) 1,618 1,439 42,979 General funds (free reserves) 25,570 55,344 (46,403) (1,732) - 32,779 Pension reserve (1,823) - (80) - 606 (1,297) Total other unrestricted 23,747 55,344 (46,483) (1,732) 606 31,482

Action - 7,322 (7,322) - - - Feel Good Friday Lottery - 3,421 (3,421) - - - Direct Services Lottery - 2,208 (2,208) - - - RNIB Enterprises Limited - 11,152 (11,152) - - - RNIB Services Limited - 2,431 (2,431) - - - NLB - 204 (204) - - - NTNM - 185 (185) - - - BCNI - 45 (45) - - - Total unrestricted – 67,498 82,312 (77,280) (114) 2,045 74,461 RNIB and Group

136 Restricted funds

1 April Income (including Expenditure Transfers Other 31 March 2019 2018 investment gains/ £’000 £’000 gains £’000 £’000 losses) £’000 £’000 Emma Nye fund welfare 385 60 (101) 25 - 369 pensions Dr Duncan Leeds Bequest 72 46 (57) - - 61 Elizabeth Eagle-Bott 18 25 (18) - - 25 Memorial Fund Donations for specified 2,672 5,026 (5,467) 453 - 2,684 services and equipment

The National Lottery Community Fund AdvantAGE – Wales Eye Patient Advocacy Service 5 - - - - 5 Continuation Empowering Young People 56 - (57) 1 - - Programme – Realise Supporting Families – 34 140 (122) - - 52 Family Insight Connecting Older People 7 - (7) - - - –Looking Forward Bright New Futures – 115 54 (154) - - 15 Future In-Sight Reaching Communities – Talk and Support: 19 42 (47) (3) - 11 Supporting our Volunteers through Mentoring

137 1 April Income (including Expenditure Transfers Other 31 March 2019 2018 investment gains/ £’000 £’000 gains £’000 £’000 losses) £’000 £’000 Reaching Communities – Trainee Grade Scheme: 5 - - (5) - - Extending the Reach Investment In Communities – 67 - (67) - - - Looking To The Future People & Places – All Wales Welfare Rights 48 - - (43) - 5 Service for People with Sensory Loss Basic Online Skills – 508 225 (714) (15) - 4 Online Today Investing in Communities 138 (2) (94) 1 - 43 – IRISS Investing in Communities – Advice Plus – 88 159 (152) - - 95 See Me Right Reaching Communities – 127 5 (90) (4) - 38 Big Skills Pilot Reaching Communities – Being There When It 122 273 (118) (218) - 59 Matters Most Our Bright Future – (10) 284 (174) (75) - 25 Vision England

The National Lottery Heritage Fund Your Heritage – 20 62 (82) - - - CultureLink SE

138 1 April Income (including Expenditure Transfers Other 31 March 2019 2018 investment gains/ £’000 £’000 gains £’000 £’000 losses) £’000 £’000

Department of Health and Social Care IESD – Electronic Certificate of Visual 3 - - (3) - - Impairment (eCVI) Sight Loss Booklet – What 3 - - - - 3 I Needed To Know Total restricted – RNIB 4,502 6,398 (7,520) 114 - 3,494

RNIB Charity 53 15,502 (15,517) - - 38 CIB 1,615 280 24 - - 1,919 RNIB Specialist Learning (195) 1,603 (1,974) - 210 (356) Trust BucksVision 452 140 (138) - - 454 Total restricted – Group 6,427 23,923 (25,125) 114 210 5,549 and RNIB

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 2019 such deficit balances amounted to £169,000 (2018: £21,000), which lies within “Donations for specified services and equipment”. The amounts included within “Group” represent the net assets at fair value of the subsidiary charities, other than those held within endowment funds.

139 Endowment funds

1 April Income including Expenditure Transfers Other gains 31 March 2018 Investment £’000 £’000 £’000 2019 £’000 gains/(losses) £’000 £’000 Sunshine 356 1 2 - - 355 Emma Nye 3,143 26 18 - - 3,151 Bristol Blind Fund 114 1 1 - - 114 Eagle-Bott Memorial 691 5 5 - - 691 Dr Duncan Leeds Bequest 1,294 9 9 - - 1,294 GDC Rushton 183 1 1 - - 183 Total endowment – RNIB 5,781 43 36 - - 5,788 CIB 1 - - - - 1 Total endowment – Group 5,782 43 36 - - 5,789 and RNIB

We apply a total return approach to The Sunshine Endowment Fund. In the year this resulted in the release of the unapplied total return amounting to £nil (2018: £nil) to general funds. Within the balance at 31 March 2019, the value of the gift element of the permanent endowment was £323,000 (2018: £323,000) and the unapplied total return was £32,000 (2018: £33,000).

140 Summary of funds

1 April Income Expenditure Transfers Other gains 31 March 2018 (including £’000 £’000 £’000 2019 £’000 investment £’000 gains/ losses) £’000

RNIB Unrestricted 67,498 55,344 (50,312) (114) 2,045 74,461 Restricted 4,502 6,398 (7,520) 114 - 3,494 Endowment 5,781 43 (36) - - 5,788 Total 77,781 61,785 (57,868) - 2,045 83,743

Group Unrestricted 67,498 82,312 (77,280) (114) 2,045 74,461 Restricted 6,427 23,923 (25,125) 114 210 5,549 Endowment 5,782 43 (36) - - 5,789 Total 79,707 106,278 (102,441) - 2,255 85,799

RNIB Income and Expenditure amounts are shown after eliminating intra group amounts.

141 22. Analysis of net assets between funds

Group fund Unre- Restricted Endow- Total Unre- Restrict- Endow- Total balances are stricted funds ment funds stricted ed funds ment funds represented by: funds £’000 funds 2020 funds £’000 funds 2019 £’000 £’000 £’000 £’000 £’000 £’000 Tangible/ intangible 55,882 2,314 - 58,196 66,668 2,952 - 69,620 fixed assets Investments 1,867 72 5,389 7,328 2,152 80 5,649 7,881 Net current assets 25,472 4,702 140 30,314 26,380 4,314 140 30,834 Long-term (1,789) (270) - (2,059) (19,085) (801) - (19,886) liabilities Defined benefit pension scheme 23,006 (1,229) - 21,777 (1,297) (1,353) - (2,650) liability Total net assets 104,438 5,589 5,529 115,556 74,818 5,192 5,789 85,799

Tangible/ intangible 55,882 - - 55,882 66,668 - - 66,668 fixed assets Investments 1,872 27 5,389 7,288 2,157 30 5,649 7,836 Net current assets 25,467 3,798 139 29,404 26,464 3,464 139 30,067 Long-term (1,789) - - (1,789) (19,531) - - (19,531) liabilities Defined benefit pension scheme 23,006 - - 23,006 (1,297) - - (1,297) liability Total net assets 104,438 3,825 5,528 113,791 74,461 3,494 5,788 83,743

142 23. Pension costs The RNIB Group pension arrangements comprise those of RNIB and the subsidiary charities, RNIB Charity and RNIB Specialist Learning Trust. The net pension reserve of £23.0m surplus (2019: £1.3m deficit) disclosed in the balance sheet only refers to RNIB and NLB. The scheme deficits of RNIB Specialist Learning Trust are included in restricted reserves along with all reserves for those entities. A summary of the movement in pension assets and liabilities for the Group’s defined benefit pension funds is shown below:

Amounts charged to SoFA Actuarial gains (losses) Defined Benefit Pension £’000 £’000 Scheme liability £’000 RNIB Retirement (8) 21,293 22,879 Benefit Scheme RNIB Pension Trust Scheme* - - 439 NLB - 64 (312) RNIB Specialist Learning Trust 33 193 (1,229) Total defined benefit schemes 25 21,550 (21,777)

The amount charged to the SoFA of £25,000 in the table above has been expensed as part of charitable activities.

143 RNIB The latest actuarial valuation as at 31 The RNIB auto-enrolment pension The RNIB Retirement Benefits March 2020 is currently in progress scheme which was administered by Pension Scheme (RBPS) is partly and is expected to be published in the National Employment Savings defined benefit and partly defined early 2021. Trust (NEST) ceased on 31 March 2019 contribution. Members joining before with on-going benefits provided in 1 April 2005 are wholly defined benefit, As of 1 July 2018, and in agreement the RNIB Retirement Benefits Scheme. with those members joining after, with the pension scheme Trustees, This was a defined contribution having a hybrid of defined benefit RNIB will make additional deficit scheme. In the year RNIB contributed and defined contribution. The assets recovery contributions of £2.5million £nil (2019: £183,000) on behalf of nil of the Scheme are held in a separate a year until 31 March 2027. (2019: 666) employees. fund, under control of its Trustees, to which RNIB has no access. A salary The Final Salary section of the RNIB The RNIB Pension Trust Scheme is sacrifice arrangement was introduced Retirement Benefits Scheme was the Pension Trust Defined Benefit 1 July 2010 whereby the member’s closed to future accruals on 31 March Scheme transferred from Action salary is reduced by the amount of the 2019. On-going benefits are provided For Blind People as a result of the member contribution and in return in a new “Defined Contribution” merger with RNIB at 1 April 2018. the employer makes an equivalent section to the Scheme provided by The scheme has been closed to new contribution to the Scheme. Legal & General. In the year RNIB members since 1 October 1997. Two contributed £4,400,000 to the employees remain active. An actuarial valuation was carried scheme (2019: £nil). out at 31 March 2017 by the pension *The RNIB Pension Trust Scheme scheme’s actuary Aon Hewitt, RNIB also participates in the Teachers’ has a calculated surplus at the end using the projected unit method. Pension Scheme, a defined benefit of March 2020 however, as there is The valuation disclosed that the scheme for employees who were no automatic distribution of this market value of the scheme’s assets formerly employed by local education surplus back to RNIB we have not (excluding defined contribution and authorities. The Teachers’ Pension recognised this in the accounts. additional voluntary contribution Scheme is an unfunded scheme. The amount recognised represents assets) at that date was £251.4million, Contributions on a “pay-as-you-go” the deficit payments made to the and that there was a deficit of basis are credited to The Exchequer scheme in the year. £14.1million relative to the technical under arrangements governed by The provisions (the level of assets agreed Superannuation Act 1972. by the Trustees and RNIB as being appropriate to meet member benefits, assuming the scheme continues as a going concern).

144 RNIB Charity scheme. Contributions on a “pay as CIB was a participant within the RNIB Charity participates in the RNIB you go” basis are credited to The defined benefit scheme “Cardiff Retirement Benefits Scheme. This Exchequer under arrangements and Vale of Glamorgan Pension is a hybrid scheme for members governed by The Superannuation Act Fund” which is part of the Local joining after 1 April 2005 and a 1972. Therefore, this scheme is treated Government Pension Scheme. The defined benefit scheme for prior as a defined contribution scheme last employees left the scheme on entrants. The assets and liabilities of from an accounting perspective. 31 March 2016, and hence there the scheme are accounted for within RNIB Charity made contributions are no on-going contributions. the Group financial statements. to the Teachers’ Pension Scheme CIB are paying a cessation liability, The charity is unable to identify, on for 15 employees (2019: 20) totalling recognised within creditors. The a reasonable and consistent basis, £85,000 (2019: £97,000 ). balance outstanding at year end its share of the underlying assets/ totalled £285,200 (2019: £356,500). liabilities as such information is The RNIB Charity auto-enrolment Monies are payable over a five-year unavailable on a disaggregated pension scheme which was period. basis. Therefore, the Charity has administered by the National accounted for contributions as if the Employment Savings Trust (NEST) RNIB Specialist Learning Trust scheme were a defined contribution ceased on 31 March 2019. This was a RNIB Specialist Learning Trust is scheme. In the year, the Charity defined contribution scheme. In the a participant within the defined made contributions totalling £nil year RNIB Charity contributed £nil benefit scheme “West Midlands (2019: £364,000 ) and nil members (2019: £74,000) on behalf of nil (2019: Pension Fund” which is part of the (2019: 152 members) remain active. 748) employees. Local Government Pension Scheme.

The Scheme was closed to future CIB RNIB Specialist Learning Trust also accruals on 31 March 2019. On- CIB has a defined contribution participates in the Teachers’ Pension going benefits are provided in a new pension scheme with Scottish Scheme, a defined benefit scheme “Defined Contribution” section to the Widows. In the year CIB contributed for employees who were formerly Scheme provided by Legal & General. £6,700 (2019: £6,600) on behalf of employed by local education In the year RNIB Charity contributed three (2019: three) employees. authorities. The Teachers’ Pension £754,000 to the scheme (2019: £nil). Scheme is an unfunded scheme. CIB also has an auto-enrolment Contributions on a “pay as-you-go” RNIB Charity also participates in the pension scheme which is administered basis are credited to The Exchequer Teachers’ Pension Scheme, a defined by the National Employment Savings under arrangements governed by benefit scheme for employees who Trust (NEST). This is a defined The Superannuation Act 1972. This were formerly employed by local contribution scheme. In the year CIB scheme is treated as a defined education authorities. The Teachers’ contributed £3,000 (2019: £1,900) on contribution scheme because no Pension Scheme is an unfunded behalf of 10 (2019: eight) employees. liability sits with RNIB.

145 NLB The scheme is classified as a Following the merger with NLB, “last‑man standing arrangement”. RNIB also offers the Pensions Trust’s Therefore, the company is potentially Growth Plan. This is a multi-employer liable for other participating scheme which provides benefits employers’ obligations if those to some 1,300 non-associated employers are unable to meet participating employers. The scheme their share of the scheme deficit is a defined benefit scheme in the following withdrawal from the UK. It is not possible for RNIB to scheme. Participating employers are obtain sufficient information to legally required to meet their share enable it to account for the scheme of the scheme deficit on an annuity as a defined benefit scheme. purchase basis on withdrawal from Therefore, it accounts for the scheme the scheme. as a defined contribution scheme and reflects the present value of A full actuarial valuation for the agreed deficit reduction payments as scheme was carried out at 30 a liability in the balance sheet. Full September 2017. This valuation details are shown below. showed assets of £794.9m, liabilities of £926.4m and a deficit of The scheme is subject to the funding £131.5million. legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

146 The following tables have been provided by the Pensions Trust.

RNIB has agreed to the following recovery plan payments: Year ending 31 March 2020 31 March 2019 31 March 2018 31 March 2017 £’000 £’000 £’000 £’000 Year 1 64 62 69 67 Year 2 66 64 71 69 Year 3 68 66 73 71 Year 4 70 68 75 73 Year 5 60 70 77 75 Year 6 - 60 80 77 Year 7 - - 82 80 Year 8 - - 42 82 Year 9 - - - 42 Year 10 - - - -

The present value of the recovery plan contributions as recognised in RNIB Group balance sheet

31 March 2020 31 March 2019 31 March 2018 £’000 £’000 £’000 Present value of provision 312 376 533

147 Reconciliation of opening and closing provision

2020 2019 £’000 £’000 Provision at start of year 376 533 Unwinding of the discount factor (interest expense) 5 9 Deficit contribution paid (62) (69) Remeasurements – impact of any change in assumptions (7) 3 Remeasurements – amendments to the contribution schedule - (100) Provision at end of year 312 376

Income and expenditure impact

2020 £’000 2019 £’000 Interest expense 5 9 Remeasurements – impact of any change in assumptions (7) 3 Remeasurements – amendments to the contribution schedule - (100)

Assumptions

31 March 2020 31 March 2019 31 March 2018 per cent per annum per cent per annum per cent per annum Rate of discount 2.30 1.39 1.71

148 Detailed disclosures relating to pension schemes The following tables, and narrative, provide the detailed disclosures that relate to the RNIB Retirement Benefit Scheme and schemes related to subsidiary entities. The column headed “Subsidiary charities” refers to RNIB Specialist Learning Trust. Together these explain the Group’s pension costs.

a. Scheme assets and liabilities RNIB Retirement RNIB Pension Subsidiary Total Benefit Scheme Trust Scheme harities £’000 £’000 £’000 £’000

2020 Scheme assets at fair value Equities 39,186 895 452 40,533 Fixed income 69,541 - - 69,541 Alternatives 14,434 - - 14,434 Corporate and other bonds - 8,832 33 8,865 Index-linked gilts - - 92 92 Property (including unit trusts) - 995 71 1,066 Real assets 5,895 - - 5,895 LDI 135,022 - - 135,022 Cash and other (including net current assets) 3,580 4,525 147 8,252 Total market value of scheme assets 267,658 15,247 795 283,700 Present value of scheme liabilities (244,779) (13,543) (2,024) (260,346) Net pension scheme asset/(liability) 22,879 1,704 (1,229) 23,354 Unrecognised asset due to surplus restriction - (1,265) - (1,265) NLB liability (312) - - (312) Total pension scheme asset/(liability) 22,567 439 (1,229) 21,777

149 b. Scheme assets and liabilities RNIB Retirement RNIB Pension Subsidiary Total Benefit Scheme Trust Scheme charities £’000 £’000 £’000 £’000

2019 Scheme assets at fair value Equities 61,907 5,991 332 68,230 Fixed income 60,617 - - 60,617 Alternatives 3,518 - - 3,518 Corporate and other bonds - 7,628 20 7,648 Index-linked gilts - - 38 38 Property (including unit trusts) - 848 43 891 Real assets 9,009 - - 9,009 LDI 107,972 - - 107,972 Cash and other (including net current 18,707 28 94 18,829 assets) Total market value of scheme assets 261,730 14,495 527 276,752 Present value of scheme liabilities (262,651) (14,024) (1,880) (278,555) Net pension scheme liability (921) 471 (1,353) (1,803) Unrecognised asset due to surplus - (471) - (471) restriction NLB liability (376) - - (376) Total pension scheme liability (1,297) - (1,353) (2,650)

150 c. Analysis of charge to the SoFA RNIB RNIB Subsidiary Total Retirement Pension Trust charities £’000 Benefit Scheme Scheme £’000 £’000 £’000

Year to 31 March 2020 Current service cost - - 222 222 Past service cost - - 36 - Interest on net defined benefit (7) - 50 43 liability/(asset) Administration expenses - 83 - 83 Expense recognised in SoFA (7) 83 308 384 Year to 31 March 2019 Current service cost 4,745 - 160 4,905 Interest on net defined benefit (16) - 37 21 liability/(asset) Administration expenses - 71 - 71 Expense recognised in SoFA 4,729 71 197 4,997

The above service cost excludes any to deficit contributions. In addition, Pension Scheme is a defined benefit RNIB contributions paid to the defined RNIB, RNIB Charity and Action For scheme for employees who were contributions section of the Scheme. Blind People share the administrative formerly employed by local education costs of the Scheme. From 1 July authorities. The Teachers’ Pension The Final Salary section of the 2010 under the RNIB salary sacrifice Scheme is an unfunded scheme. RNIB Retirement Benefits Scheme arrangement employer contributions Contributions on a “pay-as-you-go” was closed to future accruals on and service cost include the member basis are credited to the Exchequer 31 March 2019. salary sacrifice contributions while under arrangements governed by member contributions are shown as the Superannuation Act 1972. RNIB During the year RNIB contributed £nil. RNIB also makes contributions Group, including RNIB Charity, made £nil (2019: £2,570,000) to the Scheme to a number of other pension contributions to the Teachers’ Pension relating to employer contributions and schemes including the Teachers’ Scheme for 18 employees (2019: 23) £2,500,000 (2019: £1,876,000) relating Pension Scheme. The Teachers’ totalling £98,000 (2019: £114,000).

151 d. Analysis of actuarial RNIB NLB RNIB Pension Subsidiary Total gains and losses Retirement Benefit Pension Trust Trust Scheme charities £’000 Scheme £’000 Scheme £’000 £’000 £’000

Year to 31 March 2020 Asset gains/(losses) arising during 3,924 - 570 (35) 4,459 the year Liability (losses) gains arising 17,369 64 253 228 17,914 during the year Adjustment arising due to asset - (823) - (823) valuation and restriction of surplus Total actuarial gain/(loss) 21,293 64 - 193 21,550 Year to 31 March 2019 Asset gains/(losses) arising during 9,709 359 (6) 10,062 the year Liability (losses) gains arising (8,666) (562) 216 (9,012) during the year Adjustment arising due to asset (105) (129) - (234) valuation and restriction of surplus Total actuarial gain 938 (332) 210 816

Assumptions used for the FRS102 valuation are summarised in the following table.

152 e. Actuarial assumptions 2020 2019 2020 2019 2020 2019 RNIB Retire- RNIB Retire- RNIB Pen- RNIB Pen- Subsidiary Subsidiary ment Bene- ment Bene- sion Trust sion Trust charities charities fit Scheme fit Scheme per cent per cent per cent per cent per cent per cent Discount rate 2.30 2.45 2.30 2.35 2.35 2.65 Inflation assumption (RPI) 2.75 3.25 2.75 3.30 2.65 3.30 Inflation assumption (CPI) 1.95 2.15 1.75 2.30 1.85 2.30 Rate of increase in salaries 2.75 3.25 2.70 3.25 3.35 3.80

Rate of increase in pensions payments Pre 1 July 2010 – 2.65 3.10 1.90 2.35 - - 5 per cent p.a. cap Post 30 June 2010 – 2.20 2.50 1.65 1.95 1.85 2.30 3 per cent p.a. cap

Rate of increase in deferred pensions Pre 1 July 2010 – - 3.25 2.75 - - - 5 per cent p.a. cap Post 30 June 2010 – - 3.00 2.75 3.30 - - 3 per cent p.a. cap

The pension assumptions in the table above differ in respect of the two main RNIB schemes as the assumptions relating to the RNIB Retirement Benefit Scheme are specific to RNIB, whereas for the RNIB Pension Trust scheme the method determined by Pensions Trust for setting the assumptions has been adopted.

153 For the RNIB scheme the mortality For future pensioners, their life assumptions are based on standard expectancy beyond the pensionable mortality tables which allow for age of 65 is 23.5 years (2019: 23.1 future mortality improvements. The years) if they are male and 25.2 assumptions are that a member years (2019: 24.7 years) if they are currently aged 60 will live on average female. For schemes offered by for a further 27.2 years (2019: 27.1 the subsidiary charities, for current years) if they are male and for a pensioners, their life expectancy further 29.2 years (2019: 29.1 years) beyond the pensionable age of 65 is if they are female. For a member 21.0 years (2019: 21.9 years) if they are who retires in 2040 at age 60 the male, assumptions are that they will live and 23.3 years (2019: 24.4 years) on average for a further 28.0 years if they are female. For future (2019: 27.9 years) after retirement pensioners, their life expectancy if they are male and for a further beyond the pensionable age of 65 is 30.4 years (2019: 30.3 years) after 22.7 years (2019: 24.1 years) if they are retirement if they are female. male and 25.1 years (2019: 26.7 years) For RNIB Pension Trust scheme if they are female. for current pensioners, their life expectancy beyond the pensionable age of 65 is 22.2 years (2019: 21.8 years) if they are male, and 23.9 years (2019: 23.5 years) if they are female.

154 f. Changes to the present value of the RNIB RNIB Pension Subsidiary Total defined benefit obligation Retirement Trust Scheme charities £’000 Benefit Scheme £000 £’000 £’000 As at 1 April 2018 250,424 14,151 1,864 266,439 Current service cost 4,745 - 160 4,905 Interest expense on defined benefit obligation 6,411 352 49 6,812 Contributions by scheme participants 84 - 23 107 Actuarial loss/(gain) on scheme liabilities 8,823 226 (216) 8,833 Net benefits paid out (7,836) (705) - (8,541) As at 31 March 2019 262,651 14,024 1,880 278,555 Current service cost - - 222 222 Past service cost - - 36 36 Interest expense on defined benefit obligation 6,352 323 76 6,751 Contributions by scheme participants - - 38 38 Actuarial loss/(gain) on scheme liabilities (17,369) (253) (228) (17,850) Net benefits paid out (6,855) (551) - (7,406) As at 31 March 2020 244,779 13,543 2,024 260,346

155 g. Changes to the fair value of scheme RNIB RNIB Pension Subsidiary Total assets during the year Retirement Benefit Trust Scheme charities £’000 Scheme £000 £’000 £’000 As at 1 April 2018 249,005 14,280 435 263,720 Expected return on scheme assets 6,427 358 12 6,797 Contributions by the employer 4,446 274 63 4,783 Contributions by scheme participants 84 - 23 107 Actuarial (loss)/gain on scheme assets 9,709 359 (6) 10,062 Net benefits paid out (7,836) (705) - (8,541) Administration costs incurred - (71) - (71) Adjustment to preliminary asset valuation (105) - - (105) As at 31 March 2019 261,730 14,495 527 276,752 Expected return on scheme assets 6,359 339 26 6,724 Contributions by the employer 2,500 477 239 3,216 Contributions by scheme participants - - 38 38 Actuarial (loss)/gain on scheme assets 3,924 570 (35) 4,459 Net benefits paid out (6,855) (551) - (7,406) Administration costs incurred - (83) - (83) As at 31 March 2020 267,658 15,247 795 283,700

g. Changes to the fair value of scheme RNIB RNIB Pension Subsidiary Total assets during the year Retirement Benefit Trust Scheme charities £’000 Scheme £000 £’000 £’000 Actual return on scheme assets 2019 16,136 717 (6) 16,847 2020 10,283 909 (35) 11,157

156 24. Group commitments a. Capital At the year-end, RNIB had no outstanding commitments (2019: £nil). At the year-end, no other subsidiary entities have any outstanding commitments (2019: £nil). b. Operating leases At the year-end, the Group had the following annual commitments amounting to £8,460,000 (2019: £9,047,000) under non-cancellable operating leases.

2020 2019 £’000 £’000 Land and buildings Expiring within one year 880 1,001 Expiring between two and five years 2,325 3,256 Expiring after five years 4,178 4,155

2020 2019 £’000 £’000 Equipment Expiring within one year 522 277 Expiring between two and five years 555 358 Expiring after five years - - Total 8,460 9,047

157 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 2020 2019 £’000 £’000 Birmingham City Council RNIB Living with Sight Loss 21 11 Children & Young People’s Strategic Family Support Service 64 64 Partnership, Health and Social Care Board Parenting, Education and Support 11 11 Department of Health and Social Care ECSS NI Networks 59 53

Education Authority Northern Ireland Thematic Funding – RNIB CYPF Core Funding 15 -

European Social Fund and Special Eye Work Too 2018 128 115 EU Programme Body Immersive Accessibility – ImAc 14 -

Glasgow City Council Focus on Employability 6 14

Her Majesty’s Revenue and Customs HMRC Grant funding 2019-2020 – See Tax Differently 97 125

Postcode Lottery Limited People’s Postcode Lottery 1,783 - Scottish Government & Impact Funding Workplace Equality Fund - Older Workers Resource - 18 Partners Pack & Toolkit Southern Health and Social Care Trust Family Support Service 57 57 Special EU Programme Body (A project supported by the European Union’s INTERREG VA Funding – Need to talk 194 193 INTERREG VA Programme, managed by the Special EU Programmes Body (SEUPB)) **

158 Source Purpose 2020 2019 £’000 £’000 The National Lottery Community Fund Basic Online Skills - Online Today - 225 Bright New Futures - Future In-sight - 54 Investing in Communities - IRISS - -2 Investing in Communities - Advice Plus: See me 82 159 right Reaching Communities - Talk and Support: - 42 Supporting our Volunteers through Mentoring Reaching Communities – Big Skills Pilot - 5 Reaching Communities – Being There When it 36 273 Matters Most (CVICS) Supporting Families - Family Insight 139 140 Our Bright Future - Vision England - 284 New Places, New Experiences – for blind and 130 119 partially sighted people The Royal Borough of Kensington Kensington & Chelsea Outreach Svc 10 - and Chelsea

** “A project supported by the European Union’s PEACE IV Programme, managed by the Special EU Programmes Body (SEUPB).

159 Policy on relationships with 26. Post balance sheet events pharmaceutical companies The transfer of discontinuing RNIB provides services to those with establishment based services to sight problems, works to prevent specialist providers has progressed avoidable blindness and campaigns during the first quarter of 2020/21 for positive change. These functions with the transfer of Tate House on will not be influenced in any way by 2 June 2020 for a consideration our relationship with pharmaceutical of £1,650,000 resulting in a profit companies or by acceptance of on disposal of £1,194,000, the Stan grants or sponsorships from them. Bell Centre on 23 July 2020 for a We will withdraw from any initiative consideration of £3,100,000 resulting that jeopardises our independence. in a profit on disposal of £1,072,000, RNIB will not embark on, or continue Loughborough College on 3 with, any sponsorship arrangement September 2020 for a consideration or collaborative venture which might of £1,212,500 resulting in a profit damage its independence. on disposal of £360,000, Kathleen Chambers House on 25 September 2020 for a consideration of £1,395,000 resulting in a profit on disposal of £740,000 and Wavertree House on 20th October for a consideration of £3,100,000 resulting in a profit on disposal of £2,257,000. Activity for these services being transferred is presented as discontinuing operations in the statement of financial activities and all transferring assets are presented as assets held for sale within fixed assets in the notes to the accounts.

160 Thank you to our supporters

A C G Ada Hillard Charitable Trust Chiesi Ltd Godfrey Winn Will Trust Alcon Eye Care UK Ltd Children & Young People’s Strategic Evelyn and David Green Alistair Crichton Trust Partnership, Health and Social Care Mr and Mrs Clifford Gundle – Gundle Allergan Ltd Board Philanthropic Trust The Lord Archer City Bridge Trust Mr Peter Gleeson and Ms Marie Lord and Lady Ashcroft – The Cayo Clive & Sylvia Richards Charity Gilmartin Foundation Constance Travis Trust Mrs Sarah Gordon-Wild Crispa Charity Trust B H Mr and Mrs Oliver Christof B & P Glasser Charitable Trust Her Majesty’s Revenue and Customs Bayer PLC D I Sir John Beckwith CBE – Sir John DLM Trust Impact Funding Partners Beckwith Charitable Trust Mr Cyril Delamare – MontLake J Bernhadi-Derham-Reid Discretionary Management Ltd. James & Patricia Hamilton Charitable Trust Mr David Davis and Ms Jackie Wai – Trust Birmingham City Council Supermart Stores Ltd. Lady Jarvis CBE – The ROAN Mr and Mrs Gerald Davidson Blindcraft Charitable Trust Charitable Trust Mr and Mrs Richard Desmond – The Booker Prize Foundation John Scott Trust Desmond Foundation Mr and Mrs Keith Breslauer June Stevens Foundation Brian Wilson Charitable Trust E K Brownlie Charitable Trust Education Authority Northern Dr and Mrs Moshe Kantor – Kantor Mr Trevor Bond Ireland Charitable Foundation Mrs Sharon Briden European Social Fund Kathleen Beryl Sleigh Charitable Sir George and Lady Bull F Trust Mr and Mrs John Burns Facebook London Mr and Mrs Isaac Kaye – The Aimwell Mr and Mrs Ronnie Fattal – E.C Charitable Trust Sosnow Charitable Trust The Lord and Lady Fink – Barbara and Stanley Fink Foundation

161 L P S Loppylugs & Barbara Morrison Dame Mary Perkins Dr Dermot Smurfit Charitable Trust Mr and Mrs Graham Peacock Lady Beryl Steinberg – The Steinberg Mr and Mrs Derek Lovelock Mr and Mrs Paul Polman Family Charitable Trust Mrs Ruth Lever The late Mr Tony Pidgley CBE and Sanford Charity Trust Mrs Penny Lancaster-Stewart, Lady Mrs Sarah Pidgley – The Berkeley Simmons & Simmons Stewart Foundation Sir Michael Smurfit M Peacock Trust Sir Rod Stewart CBE Mr and Mrs Samad Munshi – Doctor Philip Breeze Charity Smith Charitable Trust Munshi Foundation Postcode Community Trust Southern Health and Social Care Melbreak Trust People’s Postcode Lottery Trust Mickleham Trust R Special EU Programme Body Specsavers Mr Ray Murphy Mrs Cheryl Roux – Winterbourne Mr and Mrs Sean Mulryan – Charitable Trust Miss Sophie Smurfit Ballymore Properties Ltd. Roche Products Ltd Mrs Lily Safra, Edmond J Safra Philanthropic Organisation Myristica Trust Mr Gerald Ronson CBE and Dame The Material World Foundation Gail Ronson DBE – The Gerald and T Gail Ronson Family Foundation N Mr Chris Thomas The Joseph & Lena Randall Charitable National Philanthropic Trust The National Lottery Community Trust Fund NatWest Group Thomas and Jean Smith Charitable Novartis Pharmaceuticals UK Ltd Trust O Thomas C Maconochie Trust O2 Tony & Audrey Watson Trust Mr Jan Olszowski Thompson Family Charitable Trust Mr and Mrs Michael Tabor, The Tabor Foundation

162 V Vision Foundation W Mr Charles Wilson and Dr Rowena Olegario Mr Peter Williams The Hon Andrew Wolfson – The Charles Wolfson Charitable Trust W T Mattock Charitable Trust Weinstock Fund Francis Winham Foundation Z Mrs Shirley Zsigmond

163 Who’s who at RNIB References and Professional advisers administration Patron, President and Independent auditors Vice‑Presidents The Royal National Institute of Blind BDO LLP People (RNIB) Trustees’ report and 55, Baker Street the audited Group and RNIB financial London Patron statements have been prepared in W1U 7EU Her Majesty The Queen accordance with the Statement of President Recommended Practice: Accounting Investment advisers Dame Gail Ronson DBE and Reporting by Charities 2015, BMO Global Asset Management Exchange House Vice Presidents the Financial Reporting Standard applicable in the United Kingdom Primrose Street Sir John Beckwith CBE and Republic of Ireland (FRS102), London The Rt Hon. the Lord Blunkett the Charities Act and the Charities EC2A 2NY Mr Richard Brewster Accounts (Scotland) Regulations 2006 (as amended). Solicitors Professor Ian Bruce CBE Bates Wells Mr Jeremy Bull Charity number 10 Queen Street Place London Dr Haruhisa Handa 226227 in England and Wales SC039316 in Scotland EC4R 1BG Dr Euclid Herie 1226 in the Isle of Man Actuarial advisers Lady Jarvis CBE AON Solutions UK Limited Established in 1868, RNIB was Lord Low of Dalston CBE 3 The Embankment incorporated under Royal Charter in Sovereign Street Sir Trevor Pears CMG 1949, with a Supplemental Charter in Leeds Sir Michael Rake 1993 (revised in 2007, 2014 and 2017). LS1 4BJ Dr Dermot Smurfit Sir Rod Stewart CBE and Mrs Penny Bankers Lancaster-Stewart, Lady Stewart Royal Bank of Scotland plc Marylebone Road and Harley Street The Rt Hon. the Earl of Stockton Branch The Lord (Julian) Fellowes of 10 Marylebone High Street West Stafford London W1A 1FH

164 165 Contact details

RNIB Registered Office 105 Judd Street, London WC1H 9NE t: 0303 123 9999

RNIB Cymru Jones Court/Crwt Jones, Womanby Street/Stryd Womanby, Cardiff/Caerdydd CF10 1BR t: 029 2082 8500

RNIB Northern Ireland Victoria House, 15-17 Gloucester Street, Belfast BT1 4LS t: 028 9032 9373

RNIB Scotland Greenside House, 12-14 Hillside Crescent, Edinburgh EH7 5EA t: 0131 652 3140

166 167 RE200605 rnib.org.uk Follow usonline: of, please refer to our website. our Annual and Financial Report Statements from asource you are unsure technology and are unable to use the PDF. If you are sent aWord version of available to enable effective use by people who to need use screen reader from our website in both PDF and Word at The latest Annual and Financial Report Statements are available to download To order contact the RNIB Helpline. is availableThis report in print, braille and audio CD. Isle of Man (1226). Also operating inNorthern Ireland. © RNIBregistered charityinEngland and Wales (226227), Scotland (SC039316),

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RNIB Group Annual Report and Accounts 2019/20 "Blind and Partially Sighted People Are at the Heart of RNIB and They Influence Everything We Do."

RNIB Group Annual Report and Accounts 2019/20 "Blind and Partially Sighted People Are at the Heart of RNIB and They Influence Everything We Do."