Charity number 1060431

The College of Optometrists

Report and Financial Statements

30 September 2016 The College of Optometrists

Reference and administrative details

For the year ended 30 September 2016

Name of charity The College of Optometrists

Charity number 1060431

Registered office and 42 Craven Street operational address WC2N 5NG

Trustees Dr Mary-Ann Sherratt President (From March 2016) Professor Edward Mallen Vice President (From March 2016) Dr Cindy Tromans Chair and Co-optee Mr David Parkins Immediate Past President (From March 2016) Mr Colin Davidson Treasurer Professor Peter Allen (Until March 2016) Miss Rasmeet Chadha Dr Kamlesh Chauhan Dr Leon Davies (From March 2016) Dr Rob Hogan Co-optee Mr Andrew Kitchen Lay Co-optee Mr Sanjay Patel Dr Parminder Randhawa (From March 2016) Ms Kiki Soteri Mr John Thompson Lay Trustee

Chief Executive Mr Ian Humphreys (From January 2016) Mrs Bryony Pawinska (Until December 2015)

Principal bankers Bank plc One Churchill Place PO Box 35721 London E14 5HP

Investment managers Sarasin & Partners LLP 100 St. Paul's Churchyard London EC4M 8BU

Cazenove Capital Management Ltd 12 Moorgate London EC2R 6DE

Solicitors Withers LLP 16 London EC4M 7EG

Auditors Sayer Vincent Chartered accountants and statutory auditors Invicta House 108 - 114 Golden Lane London EC1Y 0TL

1 The College of Optometrists

Report of the Trustees

For the year ended 30 September 2016

The Trustees present their report and the audited financial statements for the year ended 30 September 2016.

The financial statements have been prepared under the accounting policies set out in note 1 to the financial statements and comply with the College's Charter and Bye-Laws, applicable law and the requirements of the Statement of Recommended Practice, "Accounting and Reporting by Charities : SORP applicable to charities preparing their accounts in accordance with FRS 102" (SORP FRS 102).

Structure, governance and management The organisation was founded on 1 March 1980 as The British College of Ophthalmic Opticians. The title was changed in 1987 to The British College of Optometrists. On 18 September 1995 the organisation was granted a Royal Charter of Incorporation under the new title of The College of Optometrists.

The College is governed by its Charter and Bye-Laws. The Trustees are responsible for the management of the College which is exercised through the Chief Executive. The Council is responsible for the strategic direction of the College. The Council consists of a maximum of forty persons from the following: up to 35 members elected to represent nine regions in England, along with Northern Ireland, Scotland and Wales, four who are members of the Lay Advisory Panel, and one person nominated from the Optometry Schools Council.

The Board of Trustees has the legal and fiduciary responsibilities for the College and is comprised of up to 14 members including the four Officers, seven Council members to be elected by the Council, to include one Council member who is a member of the Lay Advisory Panel; and up to three persons co-opted as Trustees subject to the approval of the Council. Under the Charter, the Chief Executive has a right to attend all meetings of the Trustees but shall not be a Trustee. In the year there were three co-opted Trustees, one of whom is also a member of the Lay Advisory Panel.

The Chief Executive is supported in the management of the College by five executive directors heading departmental activity under Finance, Education, Member Services and Communications, Policy and Strategy, and Research.

Related Parties The College appoints five of the ten Trustees of The Benevolent Fund of the College of Optometrists and the Association of Optometrists. This structure was reviewed in the year and the governing document is in the process of being updated therefore the results of the Benevolent Fund are still being consolidated in the financial statements of the College this year. One of the College's Trustees is also a Trustee of the European Academy of Optometry and Optics, to which the College has made a loan: see note 14.

Objects of the College The objects of the College are set out in its Royal Charter, as follows: The improvement and conservation of human vision. The advancement for the public benefit of the study of, and research into, optometry, ophthalmic optics and related subjects and the publication of the results thereof. The promotion and improvement for the public benefit of the science and practice of optometry, ophthalmic optics and related subjects. The maintenance for the public benefit of the highest possible standards of professional competence and conduct on the part of the members of the College.

2 The College of Optometrists

Report of the Trustees

For the year ended 30 September 2016

Public Benefit The College is a registered charity because of the public benefit and educational services resulting from its activities. The College supports its members in all aspects of their professional development, enabling those members to serve their patients and thus contribute to the wellbeing of local communities. The College also provides services directly to the public in the form of personal advice on any aspect of optometric services, and via its website. The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the College's aims and objectives and in planning its future activities. In particular the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

Objectives For the three years ended 30 September 2017 the College adopted a series of strategic objectives, as follows:

To ensure that College membership is valuable to optometrists and an asset to their employers.

To provide and promote high quality services and support for members to develop their individual clinical practice.

To influence policy and decision makers in health care delivery in the UK countries by showing how optometrists can improve the quality of eye care.

To make people aware that they should look after their eyes and of the important role optometrists play in maintaining or improving sight.

Achievements and performance

The College works to an Annual Business Plan, covering the themes listed above. Progress is monitored monthly by the Chief Executive and his senior team, and reported regularly to the Board. Full details of achievements and activities are available on our website.

Some of the most important achievements and events during the year were as follows:

Our full member numbers have increased by 2.7% to 11,805 at 30 September 2016, taking our total membership (including students) to over 15,000.

We managed the Scheme for Registration of UK Optometrists effectively, with 644 trainees successfully completing the Scheme in the year.

We increased the range of higher qualifications available to members, by accrediting two new courses in paediatric eye care. 238 optometrists completed a College higher qualification during the year and 96 successfully completed the Independent Prescribing qualification. A Minor Eye Conditions Service (MECS) practical assessment was introduced for those planning to deliver MECS in their local areas.

We ran our largest ever member conference (Optometry Tomorrow 2016) in , with over 800 delegates. We organised another follow up "Bitesize" one day conference in London, with 214 people attending.

We held 27 events for members across the UK including 2 specifically for newly qualified optometrists.

Our patient information continues to be very popular with members and we launched a new leaflet, on dry eye, during the year and updated all the other materials. This has formed an important part of our efforts to raise our profile among members and the public.

3 The College of Optometrists

Report of the Trustees

For the year ended 30 September 2016

The final report of our major Research project on Prevalence of Visual Impairment in Dementia (PrOVIDe) was published by NIHR. Another significant commissioned project - the Enhanced Scheme Evaluation Project, produced three publications, which have been well received by LOCSU, the Optical Confederation, Local Optical Committees and the profession of optometry generally.

In our core grants programme we made the following committments: three postgraduate and three undergraduate scholarships, two Collaborative Research Awards, one Research Fellowship Award, three Small Grants for practice- based research, one travel bursary and five Research Excellence Awards.

Ian Humphreys took over as the College's new Chief Executive from Bryony Pawinska, who retired on 31 December 2015. The Trustees would like to place on record their appreciation of Bryony's outstanding service to the College, and the profession, in her 12 years as Chief Executive.

Financial review The College’s financial statements include the Research Fund and the Directorate of Continuing Education and Training scheme (DOCET) restricted fund (financed by the Departments of Health in England, Northern Ireland, Scotland and Wales). The College’s financial results are then consolidated with those of the Benevolent Fund to give figures for “The Group”. Because the College's reserves have been at a higher level than required by our reserves policy, the Trustees set a deficit budget for 2015-16, in order to spend some of those reserves on activities to further our objectives. However membership and education income again held up well and spending was well controlled so there was a small surplus for the year (before investment gains and losses) of £36,068 on Unrestricted Funds. There were net investment gains of £382,867 and so total unrestricted surplus was £418,935. For the Group as a whole (including the Research Fund and the Benevolent Fund) there was a surplus of £424,506 because planned spending was offset by investment gains.

When looking at Note 17, analysis of group net assets between funds, it can be seen that general funds show net current liabilities of £419,282. This is because of the positive cashflow that the College has as a result of deferred income received for membership subscriptions and for its pre-registration scheme. The investments held by the College can also be liquidated easily if additional funds were required.

Plans for future The College has now entered year three of the three-year strategic plan for the period 2014-17, supported by a detailed 2016-17 business plan, which has been approved by the Trustees. The positive financial result in 2015-16 will now allow further investments in member services in the coming years. The most important priorities are to support our members and our students as effectively and professionally as possible, so that they provide excellent services to their patients.

Reserves Policy and Level of Reserves

The Trustees’ policy is to hold sufficient accessible funds to enable the College to meet normal operational costs in the short term, in order to protect the College against any loss of income. This is currently set based on five months of costs The College receives much of its income at the beginning of the financial year and this is still a prudent reserves policy.

The target for general unrestricted reserves is of the order of £2.6 million, based on a budgeted level of normal expenditure for 2016-17 of £6.4 million. At 30 September 2016 accessible unrestricted reserves were £3.2 million (see note 18) and thus above the target. The Trustees are satisfied that this is a reasonable level of reserves.

In addition there are two designated funds of the College for fixed assets and for supporting research.

4 The College of Optometrists

Report of the Trustees

For the year ended 30 September 2016

Investment Policy and Performance The Trustees of the College have a legal duty to ensure that the College's funds are managed prudently and have adopted a medium risk investment strategy with a balance in the investment portfolio between gilts or fixed interest securities and equities, and a balance between UK and overseas investments. The investment portfolio is benchmarked against an appropriate composite index that is reviewed regularly. The Trustees continue to retain investments in Common Investment Funds, managed by Sarasin.

Allowing for disposals, the value of the College's investments at the end of September 2016 was higher than at September 2015, this was in line with market movements but was down on the agreed benchmark. The Trustees agreed to sell investments during the year in order to help finance planned projects and grants from the Research Fund. £800k of sales were carried out by the College over several months, in units of £200k, in order to reduce the risk of selling at a particularly unfavourable time.

Remuneration Policy In determining levels of remuneration the College has to balance a number of factors to ensure that it is able to recruit and retain employees to deliver its services effectively. Our principles are to pay our staff a fair salary that is competitive within the market, proportionate to each role, and responsible in line with our charitable objectives. The College is committed to ensuring that its salaries remain competitive in the employment market, through conducting an annual pay review, paying individuals in line with the normal sector practice and standards, and benchmarking salaries against other employers. The College applies the same benchmarking principles in respect of the CEO and Directors’ level of pay as that applied to all other employees.

Risk Statement

The Trustees review on an ongoing basis the major risks to which the College is exposed and systems have been established to manage these risks. The last such review was in October 2016 and was satisfactory.

As part of the latest review the Trustees identified key strategic risks for the College around levels of membership, long term finance, regulatory compliance, loss of reputation through clinical errors and loss of responsibility for the Scheme for Registration. The Trustees will be particularly monitoring these risks in future.

To help mitigate these risks the College has reviewed its membership offering , seeks to maintain the highest standards in both its clinical advice and education programmes and maintains appropriate reserves.

Statement of responsibilities of the Trustees

The Trustees are responsible for preparing the report of the Trustees and the financial statements in accordance with applicable law and Accounting Standards (United Kingdom Generally Accepted Accounting Practice ). The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the College and the Group and of the incoming resources and application of resources of the Group for that period. In preparing these financial statements, the Trustees are required to:

- select suitable accounting policies and then apply them consistently. - observe the methods and principles in the Charities SORP. - make judgments and estimates that are reasonable and prudent. - state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the College will continue in operation.

5 The College of Optometrists

Report of the Trustees

For the year ended 30 September 2016

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the College and the group and enable them to ensure that the financial statements comply with the Charities Act 2011 and the provisions of the Charter and Bye-Laws. They are also responsible for safeguarding the assets of the College and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the College and financial information included on the College’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees

The College’s Council annually elects members to vacancies on the Board of Trustees which comprises a minimum of four Officers, one lay member and six further Council members. Up to three further Trustees, one of whom must be an optometrist, may be co-opted.

All new Trustees receive an induction from the Chief Executive and Chair of the Board. Trustees hold an annual away day and two seminar sessions each year to increase their understanding of the issues affecting the College and develop plans for the future, including the strengthening of governance.

Trustees who served during the year and up to the date of this report are shown on page 1.

Auditors

Sayer Vincent were re-appointed as the Group and College's auditors during the year and have expressed their willingness to continue in that capacity.

Approved by the Board of Trustees on 7 December 2016 and signed on its behalf by

Dr Cindy Tromans - Chair

6 Independent auditors’ report

To the Trustees of

The College of Optometrists

We have audited the financial statements of The College of Optometrists for the year ended 30 September 2016 which comprise the group and parent charity statement of financial activities, the group and parent charity balance sheets, the group statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the trustees as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the Trustees and auditors

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees are responsible for the preparation of financial statements which give a true and fair view.

We have been appointed as auditors under section 144/145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the trustees’ annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements

In our opinion the financial statements:  Give a true and fair view of the state of the Group and College’s affairs as at 30 September 2016, and of the Group's incoming resources and application of resources, for the year then ended;

 Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

 Have been prepared in accordance with the requirements of the Charities Act 2011.

7 Independent auditors’ report

To the Trustees of

The College of Optometrists

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:  The information given in the report of the Trustees is inconsistent in any material respect with the financial statements  Sufficient accounting records have not been kept  The financial statements are not in agreement with the accounting records and returns  We have not received all the information and explanations we require for our audit

16 December 2016 Sayer Vincent LLP Statutory Auditors Invicta House, 108-114 Golden Lane, LONDON EC1Y 0TL

Sayer Vincent LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

8 The College of Optometrists

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 30 September 2016

The The Benevolent Restricted Unrestricted Benevolent Restricted Unrestricted Fund funds funds 2016 Fund funds funds 2015 Note £ £ £ £ £ £ £ £ Income from: Donations 60,611 - - 60,611 57,602 - - 57,602 Charitable activities Membership 2 - - 2,614,400 2,614,400 - - 2,564,556 2,564,556 Education 3 - 673,378 3,133,512 3,806,890 - 736,374 2,897,031 3,633,405 Research 4 - 152,777 152,777 - 95,155 82,577 177,732 Other trading activities - rent 1,369 1,369 2,330 2,330 Investments 40,023 45,125 115,879 201,027 38,751 50,195 102,067 191,013 Bank Interest - 2,159 2,159 - - 1,325 1,325

Total Income 100,634 718,503 6,020,096 6,839,233 96,353 881,724 5,649,886 6,627,963

Expenditure on: Raising funds 5 8,794 9,845 25,372 44,011 8,009 13,288 28,103 49,400 Charitable activities 5 Membership - - 1,988,795 1,988,795 - - 2,145,104 2,145,104 Education - 525,933 3,467,781 3,993,714 - 784,307 3,701,420 4,485,727 Research 474,353 502,080 976,433 - 633,346 500,666 1,134,012 The Benevolent Fund 78,591 - - 78,591 114,160 - - 114,160

Total expenditure 87,385 1,010,131 5,984,028 7,081,544 122,169 1,430,941 6,375,293 7,928,403 Net income / (expenditure) before net gains / (losses) on investments 7 13,249 (291,628) 36,068 (242,311) (25,816) (549,217) (725,407) (1,300,440) Net gains / (losses) on investments 135,386 148,564 382,867 666,817 (42,400) 39,975 83,792 81,367 Net movement in funds 148,635 (143,064) 418,935 424,506 (68,216) (509,242) (641,615) (1,219,073) Reconciliation of funds: Total funds brought forward 1,217,032 1,770,065 5,652,301 8,639,398 1,285,248 2,279,307 6,293,916 9,858,471 Total funds carried forward 18 1,365,667 1,627,001 6,071,236 9,063,904 1,217,032 1,770,065 5,652,301 8,639,398

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 18 to the financial statements.

9 The College of Optometrists

Balance Sheets

As at 30 September 2016

The Group The College 2016 2015 2016 2015 Note £ £ £ £

Fixed assets Tangible fixed assets 11 2,619,603 2,509,639 2,619,603 2,509,639 Investments 12 5,861,828 6,003,606 4,546,078 4,845,022 8,481,431 8,513,245 7,165,681 7,354,661

Current assets Debtors 13 1,440,088 1,636,735 1,439,353 1,613,804 Cash at bank and in hand 1,304,051 463,964 1,251,078 424,401 2,744,139 2,100,699 2,690,431 2,038,205 Liabilities Creditors due within one year 14 2,161,666 1,974,546 2,157,875 1,970,501 Net current (liabilities)/assets 582,473 126,153 532,556 67,704

Total Assets less current liabilities 17 9,063,904 8,639,398 7,698,237 7,422,366

Funds 18 Restricted income funds Benevolent Fund 1,365,667 1,217,032 - - Research Fund 1,083,420 1,369,014 1,083,420 1,369,014 DOCET & PrOVIDe 543,581 401,051 543,581 401,051 2,992,668 2,987,097 1,627,001 1,770,065 Unrestricted income funds: Designated funds 2,865,596 2,755,632 2,865,596 2,755,632 General funds 3,205,640 2,896,669 3,205,640 2,896,669 6,071,236 5,652,301 6,071,236 5,652,301

Total charity funds 9,063,904 8,639,398 7,698,237 7,422,366

Approved by the trustees on 7 December 2016 and signed on their behalf by

Mr Colin Davidson - Treasurer

10 The College of Optometrists

Consolidated statement of cash flows

For the year ended 30 September 2016

Note 2016 2015 £ £

Cash flows from operating activities

Net cash provided by / (used in) operating activities a 28,942 (1,705,898)

Cash flows from investing activities: Dividends, interest and rents from investments 203,186 192,338 Purchase of tangible fixed assets (159,233) (65,073) (Increase)/ Decrease in investment cash 67,123 (55,895) Proceeds from sale of investments 977,650 4,391,795 Purchase of investments (277,581) (2,914,942) Net cash provided by investing activities 811,145 1,548,223

Change in cash and cash equivalents in the year 840,087 (157,675)

Cash and cash equivalents at the beginning of the year 464,464 621,639

Cash and cash equivalents at the end of the year b 1,304,551 463,964

Notes to consolidated cash flow statement

a. Reconciliation of net income / (expenditure) to net cash flow from operating activities 2016 2015 £ £

Net income / (expenditure) for the year 424,506 (1,219,073) Depreciation charges 49,269 54,385 Gains on investments (666,817) (81,367) Dividends , interest and rent from investments (203,186) (192,338) Investment fees deducted from portfolio 41,403 49,149 (Increase) / decrease in debtors 196,647 (280,533) Increase/ (decrease) in creditors 187,120 (36,121)

Net cash flow from operating activities 28,942 (1,705,898)

b. Analysis of changes in cash At 30 Cashflows At 30 September September 2015 2016 £ £ £

Cash at bank and in hand 464,464 840,087 1,304,551

11 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

1. Accounting policies a) Basis of preparation The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and ROI (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard appicable in the United Kingdom (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and ROI (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the College and its wholly-owned subsidiary "The Research Fund of the College of Optometrists" (Charity number 1060431-1) on a line by line basis.

The College appointed five of the ten Trustees of The Benevolent Fund of the College of Optometrists and the Association of Optometrists and therefore the results of The Benevolent Fund are consolidated in the financial statements of the College on a line-by-line basis.

On 1 April 2006 the College took over the assets, liabilities and activities of The Directorate for Optometric Continuing Education and Training ("DOCET") and it is now a restricted fund of the College.

b) Reconciliation with previously Generally Accepted Accounting Practice (GAAP) In preparing the accounts, the Trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 a restatement of comparatives was required. The transition date was 1 October 2015, no restatement was required.

c) Public benefit entity The College meets the definition of a public benefit entity under FRS 102.

d) Going Concern The Trustees consider that there are no material uncertainties about the College's ability to continue as a going concern.

The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

12 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

1. Accounting policies (continued)

e) Income Income is recognised when the College has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition is met. This includes unrestricted membership and fee income received in advance where it relates to services provided in a future accounting period.

f) Fund Accounting Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is charge to the fund, together with a fair allocation of management and support costs if appropriate.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

g) Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party and the amount of the obligation can be measured reliably. Expenditure includes attributable VAT which cannot be recovered.

h) Grants payable The College pays out grants in furtherance of its charitable objects. A number of grants are made over the term of a project which can be a number of years with later payments being dependent on the recipient fulfilling certain conditions to determine whether funding is provided. For this reason the immediate liability and the related expenditure are recognised only when these conditions have been successfully fulfilled. The amounts committed but with the conditions still to be fulfilled are disclosed as a future financial committment in the notes to the accounts.

i) Allocation of support and governance costs Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central functions, is apportioned on the following basis which is an estimate, based on staff numbers, of the amount attributable to each activity. Membership 45% Education 45% Research 10% Governance costs are the costs associated with the governance arrangements of the College. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the College’s activities. These costs are now allocated to activities on the same basis as shown above for support costs

13 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

1. Accounting policies (continued)

j) Tangible fixed assets Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The useful lives are as follows:

Freehold land not depreciated Freehold buildings not depreciated after 30 September 2011 Building improvements over 10 years straight line Equipment and furniture over 10 years straight line Computers over 3 years straight line Website over 3 years straight line

The College holds a collection of library books and museum exhibits that were transferred from the British Optical Association Foundation, and includes antique books, paintings and prints. These are irreplaceable originals which are deemed not to decrease in value. Accordingly these items have not been depreciated in the financial statements, since any depreciation will not be material. The value included in the accounts is reviewed annually for indications of reduction.

k) Listed investments Investments are a form of basic financial instument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the SOFA. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading "Net gains/(losses) on investments" in the SOFA. The College does not acquire put options, derivatives or other complex financial instruments.

l) Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

n) Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

14 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

1. Accounting policies (continued)

o) Pensions The College operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the College in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the College to the fund. The College has no liability under the scheme other than for the payment of those contributions.

2. Membership 2016 2015 Restricted Unrestricted Total Total £ £ £ £

Subscriptions - 2,612,889 2,612,889 2,562,198 Museum and Library - 1,511 1,511 2,358

Total - 2,614,400 2,614,400 2,564,556

3. Education 2016 2015 Restricted Unrestricted Total Total £ £ £ £

Examination and pre-registration fees 2,864,788 2,864,788 2,666,166 Department of Health 94,000 - 94,000 96,000 Health Departments' funding for DOCET 579,378 - 579,378 640,374 College Conference 226,510 226,510 189,308 Other events - 42,214 42,214 41,557

Total 673,378 3,133,512 3,806,890 3,633,405

4. Research 2016 2015 Restricted Unrestricted Total Total £ £ £ £

Publications - OPO 152,777 152,777 82,577 Other - - - 95,155

Total - 152,777 152,777 177,732

15 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

5. Total resources expended Education Research

Raising Research Benevolent Governance Funds Membership Education DOCET Fund Research Fund costs Support costs 2016 2015 £ £ £ £ £ £ £ £ £ £ £ Direct Costs Staff Costs and Temporary Staff (note 8) - 885,221 629,560 72,200 - 215,430 - 67,530 529,820 2,399,761 2,514,211 Exam and Assessment costs - - 1,608,605 ------1,608,605 1,635,582 Exam and CPD Development - 110,063 336,933 - - - - - 446,996 640,642 Publications & Mailings - 159,412 112,654 - - 72,548 - - - 344,614 413,167 Events and Member Services - 62,745 427,450 ------490,195 493,248 Campaigns and General Expenses - 149,075 ------149,075 285,812 Guidelines - 58,893 ------58,893 88,490 Research, Scholarship and Grants - - - - 467,812 69,362 - - - 537,174 658,935 Benevolent Fund Expenditure ------74,511 - - 74,511 111,660 Total Direct Costs - 1,315,346 2,888,332 409,133 467,812 357,340 74,511 67,530 529,820 6,109,824 6,841,747 Indirect Costs Staff Expenses ------90,125 90,125 121,849 Council Trustee and Committee costs ------90,848 - 90,848 94,763 College Representation ------29,033 29,033 24,034 Professional Fees 44,011 - - - 1,619 - 4,080 11,000 28,108 88,818 121,722 Building Costs ------104,015 104,015 108,153 Bank Charges and Interest - - - - 7 - - - 35,413 35,420 27,192 Printing, Postage & Stationery ------44,473 44,473 46,578 IT, Telephones and Equipment ------69,558 69,558 74,615 Subscriptions and Donations ------72,590 72,590 142,882 Insurance ------33,541 33,541 35,905 Irrecoverable VAT ------264,030 264,030 234,578 Depreciation ------49,269 49,269 54,385 Total Indirect Costs 44,011 - - - 1,626 - 4,080 101,848 820,155 971,720 1,086,656

Total Direct and Indirect Costs 44,011 1,315,346 2,888,332 409,133 469,438 357,340 78,591 169,378 1,349,975 7,081,544 7,928,403

Support\Governance Cost Allocation - 673,449 673,449 22,800 - 149,655 - (169,378) (1,349,975) - -

Total Expenditure 2016 44,011 1,988,795 3,561,781 431,933 469,438 506,995 78,591 - - 7,081,544 7,928,403

Total Expenditure 2015 49,400 2,145,104 3,797,420 688,307 542,229 591,783 114,160 - - 7,928,403

16 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

6. Grant making Grants to Grants to Support institutions individuals costs 2016 2015 £ £ £ £ £ Post Graduate Scholarships - 238,993 1,042 240,035 212,684 Developing Researchers - 91,053 397 91,450 73,676 Eye Health Research 137,354 - 599 137,953 254,653 Small Grants Scheme - 37,496 1,403 38,899 15,278 Benevolent Fund - 63,334 15,258 78,592 114,160

137,354 430,876 18,699 586,929 670,451

The College makes grants mainly through the Research Fund. The focus is on developing future researchers for the sector but specific projects are sometimes supported. The College also runs a small grant scheme. The Benevolent Fund exists to support individual optometrists who are in need. Grants to institutions for eye health research included larger payments to the following: Ulster University £63,448, Central University Hospitals NHS Foundation Trust £35,832 and London City University £18,252 with £19,822 paid to others.

7. Net income / (expenditure ) for the year

This is stated after charging: 2016 2015 £ £ Depreciation 49,269 54,385 Auditors' remuneration (excluding VAT): . Audit - current year 11,200 11,000 . Independent examination (Benevolent Fund) 2,500 2,500 . Other services 1,800 9,370

8. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel Staff costs were as follows: 2016 2015 £ £ Salaries and wages 1,864,086 1,922,427 Redundancy and Termination Costs 3,223 3,325 Social security costs 202,035 211,664 Pension contributions 191,978 233,142 Private health and sickness insurance 71,063 96,336 Staff costs 2,332,385 2,466,894

Temporary Staff 67,376 47,317

Staff Costs and Temporary Staff 2,399,761 2,514,211

The following number of employees received employee benefits (excluding employer pension costs) during the year between: 2016 2015 No. No. £60,001 - £70,000 1 1 £70,001 - £80,000 3 3 £80,001 - £90,000 1 1 £90,001 - £100,000 - 2 £100,001 - £110,000 1 -

17 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

8. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel (cont.) The total employee benefits including pension contributions of the key management personnel were £540,502 (2015: £633,337). This does not include any payments to Trustees. 4 trustees (2015 : 5 trustees) received remuneration in the form of payment of fees. This remuneration is for acting as examiners, lecturers and visitors checking the standards of optometric practices and is in accordance with the legal authority of the College's Charter and Bye-Laws. 2016 2015 £ £ Colin Davidson 20,864 12,152 Cindy Tromans 800 1,600 Ed Mallen 800 500 Rasmeet Chadha - 100 Peter Allen (to March 2016) 4,795 10,502

Trustee Remuneration 27,259 24,854

Travel and accommodation expenses of £ 39,596 were paid directly by the College or reimbursed to 15 Trustees (2015: £39,249 to 13). All expenses were incurred through the course of duties as Trustees. The College employs the spouse of David Parkins (total cost of £65,225) (2015: £64,202). This Trustee has no part in decisions relating to this employment. The Charity Commission has given its approval for this arrangement.

9. Staff numbers

The average monthly number of employees (based on number of staff employed) during the year was 45 (2015 - 47).

The average monthly number of employees (full-time equivalents) by activity during the year was as follows: 2016 2015 No. No.

Membership 16 16 Education 15 14 Research 4 4 Support and Governance 7 10

42 44

10. Taxation The College is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charitable subsidiary, The Benevolent Fund of the College of Optometrists is also exempt as all its income is charitable and is applied for charitable purposes.

18 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

11. Tangible fixed assets Equipment, Freehold Building furniture and College Museum property improvements computers heritage Library books exhibits Website Total

£ £ £ £ £ £ £ £ COST At 1 October 2015 2,611,250 230,661 892,397 2,137 104,250 303,076 29,051 4,172,822 Disposals in year - - (408,591) - - - - (408,591) Additions in year - - 5,016 - - - 154,217 159,233

At 30 September 2016 2,611,250 230,661 488,822 2,137 104,250 303,076 183,268 3,923,464

DEPRECIATION At 1 October 2015 644,977 216,402 797,163 - - - 4,641 1,663,183 Eliminated on Disposal - - (408,591) - - - - (408,591) Charge for the year - 3,960 45,309 - - - - 49,269 At 30 September 2016 644,977 220,362 433,881 - - - 4,641 1,303,861

NET BOOK VALUE At 30 September 2016 1,966,273 10,299 54,941 2,137 104,250 303,076 178,627 2,619,603

At 30 September 2015 1,966,273 14,259 95,234 2,137 104,250 303,076 24,410 2,509,639

The library books were transferred from the British Optical Association Foundation to the College as at 31 December 1993. They are stated at the librarian's valuation dated 4 March 1982, plus subsequent additions at cost. The Museum Exhibits were also transferred from the British Optical Association Foundation to the College as at 31 December 1993. They include museum exhibits, antique books, paintings and prints, and are stated at a professional valuation dated 23 March 1982, plus subsequent additions at cost.

The Freehold land value at acquisition was £861,712 and is included in Freehold property. The Trustees looked at the Freehold property value in December 2014 and are content that the value in the accounts does not need to be impaired given current market values.

The new College website has not yet gone live so depreciation has not been charged against the cost of it this year.

All the above assets are used for charitable purposes.

19 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

12. Listed investments The Group The College

2016 2015 2016 2015 £ £ £ £ Fair value at 1 October 2015 5,891,327 7,335,961 4,842,172 6,125,114 Additions at cost 277,581 2,914,942 2,598,593 Disposals at opening fair value (953,121) (4,175,180) (777,440) (3,749,477) Investment fees deducted from portfolio (41,403) (49,149) (35,217) (41,140) Net gain / (loss) on change in fair value 642,288 (135,247) 514,722 (90,918)

5,816,672 5,891,327 4,544,237 4,842,172

Cash held by investment brokers 45,156 112,279 1,841 2,850

Fair value at 30 September 2016 5,861,828 6,003,606 4,546,078 4,845,022

Historic cost at 30 September 2016 4,654,898 5,469,289 3,742,959 4,454,683

Investments are all UK Common investment funds

13. Debtors The Group The College 2016 2015 2016 2015 £ £ £ £ Trade Debtors 605,716 815,602 605,716 815,602 Other debtors 653,892 634,239 653,852 611,308 Prepayments 140,875 186,894 140,180 186,894 Accrued income 39,605 - 39,605 - 1,440,088 1,636,735 1,439,353 1,613,804

Other debtors include a loan balance of £20,000 (2015 - £34,509) owed by the European Academy of Optometry and Optics. This is after making a write down in the year of £14,509, because a portion of the outstanding loan will be converted to a grant.

14. Creditors : amounts falling due within one year The Group The College 2016 2015 2016 2015 £ £ £ £

Trade creditors 278,273 265,633 278,273 265,633 Accruals 189,723 124,924 185,932 120,879 Taxation and social security costs 90,598 86,247 90,598 86,247 Deferred Income 1,581,884 1,359,663 1,581,884 1,359,663 Other creditors 21,188 138,079 21,188 138,079 2,161,666 1,974,546 2,157,875 1,970,501

20 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

15. Deferred Income The Group Subscriptions Education Fees 2016 2015 £ £

Balance at the beginning of the year 369,018 990,645 1,359,663 1,360,352 Amount released to income in the year (369,018) (990,645) (1,359,663) (1,360,352) Amount deferred in year 437,741 1,144,143 1,581,884 1,359,663 . Balance at the end of year 437,741 1,144,143 1,581,884 1,359,663

16. Grant commitments

Future commitments in respect of grants made over a term of years, subject to conditions and subsequent to the College’s approval: 2016 2015 £ £ Within one year 439,369 281,922 Between one and two years 257,313 173,885 Between two and three years 111,102 108,575 Greater than three years 19,319 23,831

827,103 588,213

17. Analysis of group net assets between funds

Restricted funds Designated General funds funds Total funds £ £ £ £

Tangible fixed assets - 2,619,603 - 2,619,603 Investments 2,236,906 - 3,624,922 5,861,828 Net current assets / (liabilities) 755,762 245,993 (419,282) 582,473 Net assets at 30 September 2016 2,992,668 2,865,596 3,205,640 9,063,904

21 The College of Optometrists

Notes to the financial statements

For the year ended 30 September 2016

18. Movements in funds Incoming Outgoing At 30 At 1 October resources & resources & September 2015 gains losses Transfers 2016 £ £ £ £ £ Restricted funds: Benevolent Fund 1,217,032 236,020 (87,385) - 1,365,667 College Research Fund 1,369,014 193,689 (479,283) - 1,083,420 Pre-registration - 94,000 (94,000) - - Research - PrOVIDe 36,435 - (4,915) - 31,520 DOCET 364,616 579,378 (431,933) - 512,061 Total restricted funds 2,987,097 1,103,087 (1,097,516) - 2,992,668 Unrestricted funds: Designated funds: Fixed asset fund 2,509,639 - (49,269) 159,233 2,619,603 Research Fund 245,993 - - - 245,993 Total designated funds 2,755,632 - (49,269) 159,233 2,865,596

General funds 2,896,669 6,402,963 (5,934,759) (159,233) 3,205,640 Total unrestricted funds 5,652,301 6,402,963 (5,984,028) - 6,071,236 Total funds 8,639,398 7,506,050 (7,081,544) - 9,063,904

Purposes of restricted funds The Benevolent Fund To provide assistance to active and retired members of the optometric profession and their families. College Research Fund The College Research Fund is a separate charity within the College which exists to finance research in accordance with the aims and objects of the Royal Charter of the College. Pre-registration The pre-registration income is received from the Department of Health towards the cost of managing the pre-registration trainees' year. PrOVIDe The National Institute for Health Research awarded funding to the College to carry out a research project into the Prevalence of Visual Impairment in Dementia

DOCET The DOCET fund represents the activities of The Directorate for Optometric Continuing Education and Training. DOCET administers funds made available by the Government, via the four Health Departments within the United Kingdom, for continuing education and training under Section 98 of the Care Act 2014. Purposes of designated funds Fixed assets fund This represents the net book value of fixed assets held by the College. Depreciation is charged to the fund annually, and transfers in represent additions during the year.

Research fund The research fund was established to raise awareness of research within the optometric community and to support research in the community, by funding research projects. Transfers to this fund are reviewed by Trustees on an annual basis.

22 The College of Optometrists

Management information

For the year ended 30 September 2016

The Research Fund of the College of Optometrists

The College of Optometrists has a restricted fund, "The Research Fund of the College of Optometrists"

2016 2015 Income and expenditure £ £ Income Investment income 45,125 50,195

45,125 50,195 Expenditure Scholarships 238,993 212,684 Developing Researcher Grants 91,465 73,676 Research Grants 137,354 254,653 Investment management fees 9,845 13,288 Professional Fees 1,619 1,200 Bank charges 7 16

479,283 555,516

Net investment gains 148,564 39,975

(Deficit) / surplus for the year (285,594) (465,346)

Fund balance at 1 October 2015 1,369,014 1,834,361

Fund balance at 30 September 2016 1,083,420 1,369,014

Balance sheet

Fixed asset investments 1,078,322 994,879

Current assets Debtors - 359,574 Cash at bank 21,139 17,547 21,139 377,120 Current liabilities Creditors and accruals (16,041) (2,985)

Net Assets at 30 September 2016 1,083,420 1,369,014

23