Trustees’ Report and Accounts CONTENTS

4-5 Legal & Administrative Information

6-29 Directors Report

30-31 Independent Auditors Report

32-33 Consolidated Statement of Financial Activities

34 Consolidated Balance Sheet

35 Consolidated Cash Flow Statement 36-51 Notes to the Consolidated Financial Statements

16 Merrion Square, Dublin 2, Ireland.

t +353 (0) 1 642 4600 f +353 (0) 1 661 4461 e [email protected] www.redcross.ie 3 LEGAL AND ADMINISTRATIVE INFORMATION / FOR THE YEAR ENDED 31 DECEMBER 2011 LEGAL AND ADMINISTRATIVE INFORMATION / FOR THE YEAR ENDED 31 DECEMBER 2011

Status Board of Directors The Irish Red Cross Society is registered in Ireland as a charity. Members of the outgoing Executive Committee who served in 2011 Governing Document who did not seek election to the Board in May 2012 The Irish Red Cross Society was established in Ireland in 1939 and Ted Noonan Monica Middleton is governed under the terms of the Red Cross Act 1938, (SI) 206/139. Treasurer 26 May 2012 26 May 2012

Ann Murphy Andrew Kelly Charity Number Secretary 26 May 2012 26 May 2012 CHY3950 David Lawler Anthony Lawlor 26 May 2012 26 May 2012

Board of Directors Joe Millar 26 May 2012

Current Members

David J O’Callaghan Mary Flaherty National Office Auditors Elected Chairman 9 September 2010 Elected 26 May 2012

16 Merrion Square, BDO Tom Horwell Kieran Meehan Dublin 2. Registered Auditors, Elected Vice Chairman 26 May 2012 Elected 26 May 2012 Beaux Lane House, Mercer Street Lower, Denis Reeves Cliona Lehane Dublin 2. Elected Treasurer 26 May 2012 Elected 28 May 2011 & Resigned 5th February 2013 Sheila Callan Solicitors Principal Bankers Barry O’Donovan Elected 28 May 2011 Elected Secretary 26 May 2012 Maxwell Solicitors Bank of Ireland Julianne Maher 19 Herbert Place, 2 College Green, Cathal Duffy Elected 28 May 2011 Dublin 2. Dublin 2. Elected 30 August 2011 Bernadette Rutherford Byrne Wallace Allied Irish Bank Máirtín O’Fainín Appointed 22 September 2012 87 – 88 Harcourt Street, 40/41 Westmoreland Street, Elected 26 May 2012 Dublin 2. Dublin 2. Greg Lyons Elected 26 May 2012

4 5 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 The Board of Directors presents its annual report and the audited consolidated financial statements for the year ended 31 December 2011.

Legal and administrative information is set out on pages 4 and 5. The financial statements comply with the current requirements, in accordance with the Charities Act 1961 and 1973 and also with international best practice, of the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP) (revised 2005) as recommended by the Charity Commission of England and Wales.

Irish Red Cross volunteers give a First Aid demonstration at a meeting of the Mid-West Major Emergency Management groups in Thomond Park, August 2011.

Photo: © Press 22, Limerick.

6

7 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 AIMS OF THE CHARITY Our mission is to provide care to the most vulnerable at home and abroad in peace, crisis and disaster. We do this by implementing the Red Cross Charter: preventing and alleviating human suffering, protecting life and health, ensuring respect for human beings and continually delivering a high quality humanitarian service to society at home and abroad.

As Ireland’s leading emergency response charity, 65 staff and 5,210 volunteers pursue these goals here in Ireland and overseas. Our work includes emergency response, health and social care, and building resilience at community level.

We operate in our own right, but also as part of the wider International Federation of Red Cross and Red Crescent Societies, the world’s largest humanitarian network with 13 million volunteers across 188 countries.

Our corporate strategy is currently undergoing an exciting period of review and development. When finished in 2013, it will set the framework for our activities for the period 2013-2020.

The Red Cross Charter: preventing and alleviating human suffering, protecting life and health, ensuring respect for the human being, continually providing first- class humanitarian service

Photo: © Daniel Cima/

9 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 LEGAL STATUS

The Irish Red Cross Society was formally further amended in 2012 by internally to prepare to act, in all the fields covered by the established in 1939 under the terms ratified changes. 1949 and their additional of the Red Cross Act 1938, Statutory protocols of 1977 and 2005 and on behalf of all Instrument 206/139. The Irish Red The legal objectives of the Society are war victims, both civilian and military. Somalia, a child being Cross Society’s constitution was initially to furnish volunteer aid to the sick, measured. upon arrival based on this statutory instrument and wounded and shipwrecked at sea of Such legal frameworks underline the importance at one of the therapeutic includes amendments for the Geneva armed forces in time of war; to furnish of the Irish Red Cross Society as an auxiliary to the feeding centres run Conventions of 1949, their additional relief to prisoners of war and to such public authorities in the humanitarian field, be it in by the Somali Red Protocols of 1977 and 2005 (the Geneva civilians as are protected persons; in time situations of armed conflict or natural or man- Crescent Society. Conventions) to which Ireland is a party, of peace or war to carry on and assist in made disasters. Photo: © ICRC / I. Abdullahi Acts of the Oireachtas and relevant work for the improvement of health, the provisions of the International Federation prevention of disease and the mitigation The Irish Red Cross Society is a member of the of Red Cross and Red Crescent of suffering throughout the world; to act in International Federation of Red Cross and Red Societies. The Society’s constitution was case of armed conflict, and in peacetime Crescent Societies.

10 11 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011

ORGANISATIONAL STRUCTURE

The General Assembly (formerly the Chairperson and three Honorary Central Council) is the highest officers –Vice Chairperson, Honorary deliberative authority of the Secretary and Honorary Treasurer. An Irish Red Cross Society. additional two Board members are added through nominations from the Under our new Constitution enacted Chairperson, with the intention of adding to in April 2012, more than 75% of the the Boards depth and diversity. Directors members of the General Assembly are can serve up to two terms of three years, elected as representatives of regional after which they are obliged to stand areas by the local membership of the down for a minimum three year term. Society, with the remaining members made up of the Chairperson, a member elected by Irish Red Cross Youth, the National Director of Units, representatives from Government, non-members chosen for their specific competencies and two nominees of the Chairperson. The Board of Directors is formed by the election of twelve Board members from among the General Assembly members, to include

The Irish Red Cross supported the Japanese Red Cross Society in responding to 280,000 people affected by the tsunami

Photo: © Toshirharu Kato, Japanese Red Cross

12 13 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 MANAGEMENT & DECISION MAKING

The Board of Directors is vested with all the necessary powers for carrying out the aims of the Society. The focus of the Board is more particularly on matters of policy and oversight. It works closely with the Secretary General, senior secretarial staff and the Chairpersons of our various Working and Advisory Groups who together are tasked with the implementation of Policy.

Strong emphasis is now placed on the induction, training and development of our Board members, and various presentations, updates and training opportunities are provided to ensure that they are appropriately prepared for their roles.

The Board of Directors recognises that it has responsibility to ensure that the Society has effective Risk management and Control processes in place.

COMMITMENT TO STANDARDS IN FUNDRAISING PRACTICE

The Irish Red Cross Society is fully committed to achieving the standards contained within the “Statement of Guiding Principles for Fundraising (‘the Statement’)”. We have considered the Statement and believe we meet the standards it sets out. We also welcome feedback on our performance.

Write to: Secretary General, Irish Red Cross Society, The Irish Red Cross 16 Merrion Square, continued to support the Dublin 2. efforts of the Pakistan Red Crescent working in flood affected communities in 2011 by ensuring the delivery of essential drinking water and sanitation services.

Photo: © IFRC

14 15 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 POST YEAR END GOVERNANCE DEVELOPMENTS

Following the enactment of a Statutory Order in April 2012, changes were made to the Constitution of the Society which has facilitated a modernisation of its structures and governance.

We also welcome the “Code of Practice for Good Governance of Community, Voluntary and Charitable Organisations in Ireland” which was launched in May 2012 and we are committed to fully complying with its contents.

A review of our organisation’s compliance with the principles of the Code has been conducted in 2012 and any areas of weakness have been identified. These are currently being addressed and we are confident that we will be in full compliance with the Code by the end of 2013

VOLUNTARY MEMBERS

The Board of Directors recognises and appreciates the commitment of the Society’s 5,210 members throughout the country. It is not possible to place a monetary value on this voluntary effort but it is essential in enabling the Society to achieve its core objective of preventing and alleviating human suffering, protecting life and health, ensuring respect for human beings and continually delivering a high quality humanitarian service to society at home and abroad.

In March, violent clashes in Libya have left hundreds of people dead and thousands injured. Tens of thousands of people left their homes and crossed into Tunisia and Egypt.

Photo: © ICRC

16 17 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 CHAIRMAN AND SECRETARY GENERAL’S STATEMENT

2011 was European Year of the Volunteer, and reminded all of us that the work of the Irish Red Cross Society is only made possible through the selfless effort of thousands of volunteers around the country. Alongside our small but dedicated corps of staff in Ireland and overseas, their giving, helping and caring enables our Society to make an enormous contribution to communities and make a real difference to people’s lives.

Through the past year we continued to rely Based Health and First Aid programme on the generosity of our donors to fund in Irish prisons; and our International the work we do at home and abroad. In Federation Award at the International David J O’Callaghan, Irish Red Cross Chairman. Photo: © Dermot Byrne Photography particular we want to acknowledge the General Assembly for the IRC Youth HIV/ contribution we receive from Government AIDS Awareness programme. It should funds which is a critical support. For this make us all proud to see the Irish Red we are immensely grateful. The public also Cross Society recognised in this way and continued to display their kind generosity give us great confidence for the future. and thoughtfulness, responding with great compassion to people in distress at 2011 was a watershed year for the home and overseas despite the economic Society. It has marked a new beginning downturn. Their generosity is both and a growing commitment to change and humbling and uplifting. rejuvenation. Substantial steps have been taken to put our governance processes Much of the good work we do at the and financial management practices on a Irish Red Cross Society is done quietly proper footing and to rebuild our financial and routinely. Our volunteers did feature capacity in a way that will enable us to grow prominently in the response to the east and develop in the years ahead. There is coast flooding in October 2011, the much more to do but we can be confident support of communities during the severe that the foundations are solidly in place. winter weather earlier in the year in January 2011, and internationally through our Looking ahead we are determined to build support of the people in East Africa, but on our recent achievements. Throughout while such publicity serves to highlight the the course of 2011 we have started on a work that we do, it does not do full justice journey.That journey has continued in 2012 to the scale of the contribution which our and into 2013. We are confident that we are volunteers and staff have made in helping now on course for a new and exciting future others and improving their lives through the for the Irish Red Cross Society. course of the year.

It was a year in which we achieved some notable successes: we particularly want to mention our World Health Organisation award for the Irish Red Cross Community- 18 Donal Forde, Irish Red Cross Secretary General. Photo: © Dermot Byrne Photography 19 New Zealand Red DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 Cross search and rescue volunteers inspect damaged buildings in the Christchurch area. ACTIVITY REPORT Photo: © FOR 2011

Following the appointment of a financial controls and supervisory new Chairman in late 2010, and the processes and the establishment of an appointment of a new Secretary Independent Audit Committee. This work DIRECTORS REPORT / For the year ended 31 December 2011 General and Head of Fundraising & has continued into 2012 with further Communications in early 2011, the year initiatives implemented to ensure that the comprised a period of review and re- Society is meeting best practice standards orientation at the Irish Red Cross Society. in all aspects of financial management. EMERGENCY RESPONSE Given the recent focus on the governance More broadly, 2011 saw substantial of the Society and the question of financial progress with constitutional reform governance in particular, our principal and modernization and this has since & RECOVERY objective for the year was the development culminated in the introduction of a new The Society launched 7 emergency was launched to assist the most vulnerable of financial management policies, Constitution for the Society in the earlier appeals in 2011, raising €1.19M for and needy affected by the floods and structures and systems that would enable part of 2012. This is a very significant people in New Zealand, Japan, Cote small cash grants were given to upwards effective governance and control. Over milestone and marks a new beginning d’Ivoire, Libya and the surrounding region, of 30 families to help them recover. the course of 2012, this was achieved for the Society in many different ways. East Africa, Turkey and the Philippines, with the development of a suite of financial helping them recover from famine, At the start of the year the Irish Red Cross policies, the introduction of extensive conflict, flooding and earthquakes. Society volunteers were mobilized to respond to the most vulnerable in our In Somalia, the Irish Red Cross Society communities affected by the heavy provided financial assistance to the snow and severe weather. Patients International Committee of the Red were transported to hospitals and Cross (ICRC) to support 11 new medical staff and essential medicine outpatient therapeutic feeding programs was brought to people trapped in their and 9 mobile health teams, providing homes by our fleet of 4x4 vehicles. treatment to over 27,800 severely malnourished children. We also provided In addition we continue to develop our financial support to the Kenyan Red Search and Rescue units which work in Cross Society and the Sudanese Red support of An Garda Síochana and the Cross Society to strengthen their ability Irish Coast Guard in search and rescue to respond to disasters in the future. missions, particularly in the Dublin/ Wicklow and Sligo/Leitrim mountain Through funds raised from our Japanese areas and Lough Corrib/Mask. Tsunami Appeal, we supported the Japanese Red Cross relief and As part of the Major Emergency recovery programme, assisting more Management Plan, we were active Dublin’s Lord Mayor, than 280,000 people in need. during 2011 in a number of planned Andrew Montague, with Irish Red Cross Volunteers meetings and workshops to ensure the Claire Doran and Liam Morrise at the launch At home, our volunteers were mobilized to most effective co-ordination with state of the latest Irish Red respond to the severe flooding along the agencies and other bodies within the Cross ‘First Responder Bike Units’ at his office east coast in October 2011, and also took voluntary emergency services sector. on Dawson Street. Photo: © Laura Gallagher, part in search and rescue operations to Irish Red Cross find missing people. An emergency appeal 20 21 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 In Indonesia we continued our programme of targeted cash grants to allow young people access to education. In 2011 we helped 450 young people go to school and HEALTH AND trained 100 teachers. We continued our support of Radio R-PMI, a key component SOCIAL CARE of local disaster early warning infrastructure. Our programmes in Sri Lanka helped 125 families rebuild their lives in post-war 2011 was an exciting year for the the WHO award for best practice for areas, while 70,000 people benefitted from Irish Red Cross Society health health promotion in prisons. Running in improved medical facilities. In particular, the and social care programmes. Wheatfield, Cloverhill and Shelton Abbey, Irish Red Cross Society contributed to the our IRC prison inmate volunteers work construction of a surgical and medical ward In total, 119 people were trained in with their peers in disease prevention, in Chava, a hospital severely damaged in Therapeutic Hand Care in 2011 with 5 health promotion and first aid. the fighting that finished in recent times. new instructors also taking part in the new Instructor Training programme. Our Irish Red Cross Youth team ran the Back home, our Restoring Family Links Our dedicated Therapeutic Hand Care enormously popular and successful programme aims to restore and maintain volunteers provided human contact and HIV Awareness Programme, raising contact between families who have been warmth through the medium of hand awareness of HIV and AIDS related issues. Mary Brady, Irish separated by armed conflict, political massage to the elderly and vulnerable in The focus is on preventing new infections Red Cross Carer upheaval, natural disaster or migration. homes and hospices around the country. and ending stigma. Our programme staff of the Year 2011 Demand for our tracing service, tracing and volunteers ran a number of initiatives with her children. family members whose whereabouts Our unique Skin Camouflage Programme, during the year aimed at developing Photo: © Clare Keogh Photography are unknown, rose by 60% in 2011. which helps to cover scarring or other Youth members’ self-confidence and disfiguring skin conditions, trained another leadership skills, while the ‘Positive 8 practitioners around the country. Images’ programme continues to Clinics were held in Dublin, Donegal, promote diversity and non-discrimination. Kildare, Tipperary, Louth and Wexford. In Malawi, where an estimated one million The Irish Red Cross Society Helping you people are living with HIV and there to Care Handbook for carers goes from are an estimated one million orphans, strength to strength. A course is currently our activities are focused mainly on the being developed to run alongside this prevention of HIV and AIDS through highly-valued publication. The ‘Carer education and communications initiatives of the Year’ award was presented in targeting 10,000 people aged 15-49. Cork in November, garnering much We also provided treatment and care to deserved recognition for the recipient. 400 people confined to their homes, and supported 1,000 children at 4 community In August 2011, the ground breaking Irish childcare centers, helping plant fruit trees Red Cross Community Based Health & and other crops to improve their nutrition. First Aid in action programme received

22 23 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 BUILDING RESILIENT COMMUNITIES

Across Europe each year there are almost and understanding of International one hundred million medical emergencies, Humanitarian Law (IHL) remains a key ranging from cardiac accidents, domestic contribution which the Irish Red Cross accidents and disasters. The first critical Society can and does make to our society minutes are vital in a personal crisis here in Ireland. This year we facilitated a situation, and this is why teaching first study on Customary IHL in Ireland and aid to the general public is a primary undertook a study on the compatibility of mission of the Irish Red Cross Society. Irish legislation with IHL obligations. We worked hard to spread awareness of IHL In Europe, Red Cross and Red Crescent through formal and informal channels: Societies train more than 3.5 million presentations around the country, an people in first aid every year. In Ireland academic conference and a new series we trained 9,477 people: 6,081 people of roundtable discussions on IHL. trained in basic life-saving first aid, 3,022 trained as Cardiac First Responders and Through our Youth activities, the Irish 174 as Emergency First Responders. Red Cross Society strives to empower As well as this, our commercial training young people to make a difference in service was enhanced, bringing their communities, especially for the first aid into the workplace and into most vulnerable. In 2011 we provided many homes and communities. Irish Red Cross Society youth members with the opportunity to take part in During the year we, in particular, worked the Young Refugees Programme, the to adapt our first aid teaching and National Youth Challenge, our annual materials for working with vulnerable National Youth Camp and the OPTIONS/ community by providing first aid cover people. A pilot programme was Gaisce partnership. We continued the at local events. In addition, the elderly Students proudly undertaken and new teaching materials roll out of the successful Positive Images and vulnerable are often transported free show off their bank have been developed and launched. project, promoting diversity and non- of charge to and from their homes. books. Cash grants discrimination, holding training courses are transferred to each In addition to the direct delivery or support in Limerick, Cork, Dublin and Donegal. In our work in Niger, West Africa, we helped students bank accounts of humanitarian aid and development 26,000 people in 45 villages become on a quarterly basis to at home and around the world, we also 300 members were trained in 2011 more ‘food secure’ through our work assist them continue with their education. remained active throughout the year in both Level I and Level II of Child with the Niger Red Cross. We trained in a number of conversations at sector Protection Training, and Trainer Manuals communities in animal husbandry and Photo: © PMI and international level. For example, were developed for both levels. food production, worked with community as a member of Dochas, we worked members to build or repair some 49 through the year to address and reduce In our 152 branches around the country, Cereal banks to build resilience to future gender-based violence, participating in the Irish Red Cross Society volunteers stocks and increased access to clean the development of the National Action contribute to their communities in drinking water for almost 8,000 people. Plan on Women, Peace and Security. countless small and large ways. Most The work of raising awareness visibly, our volunteers give time to their

24 25 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011

REVIEW OF FINANCES (continued)

Our support comes in many forms and this those in greatest need of our services and REVIEW OF year as well as monetary donations we had programs nationally and internationally. help from people who donated their time and expertise to the Irish Red Cross Society The Irish Red Cross Society acknowledges FINANCES and we are very grateful for this. and appreciates the support from the government, institutional donors and the We entered 2011 expecting the year to be very challenging The cost of generating funds totalled general public particularly in the current from a financial perspective. With the unpredictable, difficult €1.8 million in 2011 which represents a 2% difficult economic climate. increase on 2010 levels. However within nature of the global economic environment, we anticipated this number there is a significant increase in this would impact our government funding, trading income fundraising costs and a reduction in trading activity costs. Reserves and fundraising income. However in a turbulent year we are It is the policy of the Irish Red Cross Society pleased to deliver a satisfactory financial performance. We increased our investment in fundraising to retain sufficient reserves to cover future activities to develop our longer term funding commitments in relation to its ongoing base. This is reflected in a 45% increase in function and mandate. These provisions are Income Expenditure fundraising costs from 2010 levels. intended to finance: The total income for 2011 amounts to €8.3 Our total expenditure for the year was €9.4 million. This represents a decrease of 25% million made up as follows: Trading Costs: the decrease in trading • Working capital requirements. from income levels of 2010 and arises from: activity costs relates directly to the Charitable Activities 73.8% reduction in sales income. • Potential setbacks in income. Fundraising Income -40%: €6.9 million this reduction is a result of the strong Governance costs amounted to €647,000 •  Fixed assets required for response to the two emergency appeals in Fundraising Costs 8.8% which represents a decrease of 11% from ongoing operations. Haiti and Pakistan in 2010. Outside of the €0.83 million 2010 levels (see note 7 to the financial income raised from emergency appeals, statements). •  Unexpected/emergency public donations remained consistent with Trading Costs 10.6% expenditure. 2010 levels. €1 million The total reserves of €11.4 million

Trading Income -14%: Governance Costs 6.8% Overall Result are detailed in note 19 to the financial decrease in the sale of training courses €0.61 million Net (outgoing)/incoming resources statements and fall into three categories. and services. (€1.214 million). Net incoming resources Total expenditure at €9.4 million of €441,000 on unrestricted funds. •  Restricted Funds Income from Charitable Activities -21%: represents a 28% decrease from 2010 Restricted funds €1.9 million: these are decrease in IRC Branch duty income and levels. However the 2010 expenditure for Net outgoing resources of €1.65 million funds restricted for a specific use as sales of training courses. charitable activities was particularly high on restricted funds. The net outgoing defined by the donor. The majority of given the level of expenditure incurred in resources of €1.65 million relates to these funds relate to income earmarked Institutional Donors +25%: both Haiti and Pakistan in response to restricted reserves that were utilised in for Tsunami related projects, Niger, Haiti additional grant for national building project those natural disasters. 2011 for International programmes. and other international and national and international development programme programs. in Niger. Within the costs of charitable activities, It is predicted that 2012 and 2013 will also there is also a notable 18% increase in prove to be difficult years as we continue to •   Designated Funds Other Income +18%: support costs. Our total support costs for work in a difficult economic climate. Designated funds €603,000: these are additional royalty and investment income. the year amounted to €909,000 (see note unrestricted funds which have been 7 to the financial statements) compared to We will continue this prudent stewardship allocated by the Board of Directors to €742,000 in 2010. This increase is primarily of the resources for which we are assist in the financing of future capital due to once off legal costs incurred during responsible and we will continue to devote expenditure projects, and which as a the year. our time and attention to ensuring that result are not available for general use. our charitable activities meet the needs of

26 27 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011 DIRECTORS REPORT / FOR THE YEAR ENDED 31 DECEMBER 2011

REVIEW OF FINANCES (continued) REVIEW OF FINANCES (continued)

• Unrestricted funds sub-committee of the Finance Working Statement of Directors and hence for taking reasonable steps for Unrestricted funds €8.9 million: which Group is tasked with the responsibility to Responsibilities the prevention and detection of fraud and consist of cash and tangible fixed identify, categorise and evaluate all risks, The Board of Directors of the Irish Red other irregularities. assets which are available for day to to create a more comprehensive Risk Cross Society operates through the day operations of the society. Register, and to bring recommendations delegated authority of the Society’s General The Board of Directors conduct regular to the Board that will manage and mitigate Assembly (formerly Central Council). Its role reviews of the Society’s system of these substantially. In the meantime, great is to direct and supervise the affairs of the Internal Controls, Performance reporting, progress has been made in addressing Society on a day to day basis, to ensure Policies and Procedures. This ensures Financial Governance specific areas of risk, most notably relating that it delivers on its goals and objectives, that expenditures are appropriate and We are delighted to report that we to the protection of children and vulnerable and to uphold the values and principles of reasonable, funds are spent or managed have produced Consolidated Financial adults. Where risks cannot be eliminated the Red Cross Movement in every aspect in accordance with approved procedures, statements for the first time in 2011. We or satisfactorily managed, the Board will of its activities. investments are carefully managed, and a have complied with the recommendations be asked to confirm that they are within full and accurate account is maintained of of the Statement of Recommended acceptable risk parameters. The Board of Directors is responsible for all financial transactions. An Internal Audit Practice, Accounting and Reporting by the preparation of the financial statements Committee has been established to support Charities (revised 2005) (SORP 2005) as The Audit Committee will also have for each financial year, which give a true the Board in meeting this obligation. recommended by the Charity Commission a role in reviewing this general risk and fair view of the state of affairs of the of England and Wales. This has brought a management framework and appropriate Society and the incoming resources and fresh approach to our financial reporting risk-based Audit plans will be drawn up, application of funds, including the net and will ensure that our financial statements together with frequent reports to the income or expenditure of the Society for the Auditors continue to comply with all legal, Board and recommendations for ongoing year. In preparing these financial statements BDO, Registered Auditors, have expressed accounting standards and the Statement improvements in internal controls and risk the Board of Directors is required to: their willingness to continue as Auditors of of Recommended Practice 2005. management practices. the Society. • Select suitable accounting policies and then apply them consistently; Approved by the Board of Directors on Behalf of General Assembly on Financial Risk Management • Make judgments and estimates that are 9th February 2013 For the past year, our primary emphasis reasonable and prudent; from a risk management viewpoint has been on all matters financial. A suite of • State whether applicable accounting financial policies has been developed standards and statements of to create a proper framework for recommended practice have been financial management and this has followed, subject to any material David J O’Callaghan been complemented with a series of departures disclosed and explained in Director controls and oversight processes that the financial statements; and have substantially mitigated the financial risk profile of the Society. An internal • Prepare the financial statements Audit Committee is now in place which on the going concern basis unless it reviews this financial risk management is inappropriate to presume that the Tom Horwell framework and reports independently Society will continue in operation Director to the Chairman and the Board. The Board of Directors is responsible for keeping proper accounting records which disclose with reasonable accuracy General Risk Management the financial position of the Society and The activities of the Society lead to which enable it to ensure that the financial other categories of risk and work is now statements comply with relevant legislation. underway to address these in an equally The Board of Directors is responsible for comprehensive manner. A Risk safeguarding the assets of the Society

28 29 INDEPENDENT AUDITOR’S REPORT (CONTINUED)

We planned our audit so as to obtain all the information and explanations which we considered INDEPENDENT necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or AUDITOR’S REPORT other irregularity or error. In forming our opinion we evaluated the overall adequacy of the presentation of information in the financial statements. to the General Assembly of the Irish Red Cross Society. This is the first year since the inception of the Society in 1939 that the results and financial We have audited the consolidated financial statements of the Irish Red Cross Society for the position of the combined Head Office, Commercial Training, International overseas operations year ended 31 December 2011, which comprise the Consolidated Statement of Financial and branch operations have been consolidated. Given that consolidated financial statements Activities, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and the have not previously been prepared and without an examination of the transactions in prior related notes 1 to 25. These financial statements have been prepared under the accounting years, our scope is limited. As a consequence, it was not possible for us, as auditors, to policies set out therein. perform the procedures necessary to obtain sufficient appropriate audit evidence as regards the completeness of the incoming and outgoing resources in previous years and consequently This report is made solely to the General Assembly of the Irish Red Cross Society as a body. the completeness of the opening net asset position at 1 January 2011. Our audit work has been undertaken so that we might state to the General Assembly those matters we state to them in an independent 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 General Assembly of the Irish Red Cross Society as a body, for our audit work, for this Qualified Opinion arising from Limitation of Audit Scope report, or for the opinions we have formed. Except for the financial effects of such adjustments, if any, as might have been determined to be necessary had we been able to satisfy ourselves as to the opening net assets at 01 January 2011, in our opinion, the financial statements give a true and fair view, in accordance with Generally Accepted Accounting Practice in Ireland, of the state of affairs of the Irish Red Cross Respective responsibilities of the General Assembly and Auditors Society as at 31 December 2011 and of its net outgoing resources for the year then ended. The Board of Directors of the Irish Red Cross Society are responsible for preparing the financial statements, as set out in the Statement of Directors Responsibilities of the Society, 9th February 2013 in accordance with applicable law and Accounting Standards issued by the Accounting Standards Board and published by the Institute of Chartered Accounts in Ireland (Generally Accepted Accounting Practice in Ireland).

Our responsibility, as independent auditors, is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK BDO and Ireland). Registered Auditors Dublin We report to you our opinion as to whether the financial statements give a true and fair view, in accordance with Generally Accepted Accounting Practice in Ireland.

Basis of Audit Opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board, except that the scope of our audit work was limited as explained below. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the Board of Directors of the Irish Red Cross Society in the preparation of the financial statements and of whether the accounting policies are appropriate to the Irish Red Cross Society’s circumstances, consistently applied and adequately disclosed.

30 31 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES / FOR THE YEAR ENDED 31 DECEMBER 2011 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011 (includes Income and Expenditure Account and Statement of Recognised Gains and Losses) (includes Income and Expenditure Account and Statement of Recognised Gains and Losses)

2011 2010 2011 2010 Incoming resources Notes Unrestricted Restricted Total Total Incoming resources Notes Unrestricted Restricted Total Total €000 €000 €000 €000 €000 €000 €000 €000

Incoming resources from generated funds Net (outgoing) / incoming resources before 441 (1,655) (1,214) (2,158) recognised gains and losses Voluntary income 2 3,835 1,970 5,805 7,871 Actuarial (losses) / gains on defined benefit Trading activities 3 1,332 - 1,332 1,550 (200) 196 pension schemes 15 - (200) Investment income 4 45 130 175 149 Net movement in funds 241 (1,655) (1,414) (1,962) Total incoming resources from generated funds 5,212 2,100 7,312 9,570 Total funds – 1 January 9,338 3,558 12,896 14,858

Incoming resources from charitable activities Total funds – 31 December 9,579 1,903 11,482 12,896

Resilience 5 912 - 912 1,400 All the activities relate to continuing activities. Health and social care 6 27 - 27 34

Total incoming resources from charitable activities 939 - 939 1,434 Incoming resources and net outgoing resources arose solely from continuing activities.

Total incoming resources 6,151 2,100 8,251 11,004 The financial statements were approved by the Board of Directors on behalf of the General Assembly on 9th February 2013. Resources expended On behalf of the Board of Directors

Cost of generating funds

Voluntary income 7 (835) - (835) (459)

Trading activities 7 (1,002) - (1,002) (1,336)

Total resources expended on generating funds (1,837) - (1,837) (1,795) David J O’Callaghan Tom Horwell Costs of charitable activities Director Director Emergency response and recovery 7 (46) (1,526) (1,572) (4,966)

Resilience 7 (2,125) (872) (2,997) (3,676)

Health and social care 7 (146) (1,357) (1,503) (1,223)

Supporting the movement 7 (909) - (909) (742)

Total resources expended on charitable activities (3,226) (3,755) (6,981) (10,607)

Governance costs 7 (607) - (607) (724)

Total resources expended (5,670) (3,755) (9,425) (13,126)

Net (outgoing) / incoming resources before transfers 481 (1,655) (1,174) (2,122)

Transfers between funds (40) - (40) (36)

Net (outgoing) / incoming resources 441 (1,655) (1,214) (2,158) before recognised gains and losses

32 33 CONSOLIDATED BALANCE SHEET / AS AT 31 DECEMBER 2011 CONSOLIDATED CASH FLOW STATEMENT / FOR THE YEAR ENDED 31 DECEMBER 2011

Notes 2011 2010 Notes 2011 2010 €000 €000 €000 €000

Fixed assets Net cash (outflow)/inflow from operating activities 17 (1,536) 560

Tangible fixed assets 9 5,734 4,750 Interest received 164 139

5,734 4,750 Capital expenditure:

Current assets Purchase of tangible fixed assets (1,043) (663)

Stocks 10 184 154 Decrease in cash for year (2,415) 36

Debtors: (Amounts falling due within one year) 11 721 862 Reconciliation of net cash flow to movement in net funds Cash at bank and in hand 6,338 8,774 Movement in net funds for the year (2,415) 36 7,243 9,790 Net funds at beginning of year 8,517 8,481 Current liabilities Net funds at end of year 18 6,102 8,517 Creditors: (Amounts falling due within one year) 12 (905) (1,252)

(905) (1,252)

Net current assets 6,338 8,538

Total assets less current liabilities 12,072 13,288

Creditors: (Amounts falling due in more than one year) 13 (236) (253)

Net assets before pension scheme deficit 11,836 13,035

Defined benefit pension scheme deficit 15 (354) (139)

Net assets 11,482 12,896

Represented by:

Restricted funds 19 1,903 3,558

Unrestricted funds

General funds 19 8,976 8,644

Designated funds 19 603 694

Total funds 11,482 12,896

The financial statements were approved by the Board of Directors on behalf of the General Assembly on 9th February 2013. On behalf of the Board of Directors

David J O’Callaghan Tom Horwell Director Director

34 35 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / FOR THE YEAR ENDED 31 DECEMBER 2011 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011

1. accounting policies (continued)

(d) Resources expended and carrying value may not be recoverable. 1. STATEMENT OF (i) Income Resources basis of allocation of cost (f) Depreciation ACCOUNTING POLICIES All income is accounted for when the Society All expenditure is accounted for on an Depreciation is provided at rates calculated has entitlement to the funds, the amount can be accruals basis. to write down the cost or valuation of each The principal accounting policies of the Irish Red Cross quantified and there is certainty of receipt. Where asset to its estimated residual value, over its Society, which are outlined below, have been applied income is received in advance of providing goods Direct costs are those specifically related to expected useful life, on a reducing balance consistently throughout the current and prior year: and/or services, it is deferred until the Irish Red producing the output of an activity, for example the basis. The depreciation rates are as follows: Cross Society becomes entitled to that income. costs incurred in direct contact with beneficiaries. (a) Scope and basis of the financial statements: Freehold and Leasehold Premises The consolidated financial statements have (ii) Income from legacies Support costs are those which provide indirect 2% Straight Line been prepared under the historical cost Income from legacies is accounted for on a receivable support to front-line output provision — convention. They follow the recommendations basis, and is recognised in full in the financial examples are central finance, human resources , Sea Rescue and Equipment in the Statement of Recommended Practice, statements in the period in which probate is granted and management information services. 10% Reducing Balance Accounting and Reporting by Charities and where the amount can be reliably ascertained. (revised 2005) as recommended by the Governance costs relate to the direct running Fixtures, fittings and equipment Charity Commission of England and Wales. (iii) Subscriptions / Donations & Royalties of the charity, allowing the charity to operate 10% Reducing Balance In general subscriptions, donations and royalties and generate the information required for (b) Basis of consolidation are recognised on a cash receipts basis when public accountability. They include the costs Computer equipment The financial statements incorporate the results the money is lodged in the bank. of subscriptions related to membership of the 20% Reducing Balance and financial position of the Head Office, International Red Cross and Red Crescent Commercial Training, International overseas (iv) Bank Interest Movement, as well as the costs of trustee operations and all branch operations situated Bank interest receivable is accounted meetings and internal and external audits. (g) Investments in the . All transactions for on an accruals basis. Investments are stated at market value between these divisions have been eliminated (e) Tangible fixed assets at the balance sheet date. in the preparation of the consolidated financial (v) Properties All tangible fixed assets are initially recorded statements. The financial year of all reporting Properties donated for use by, and now owned by, at historic cost. Capital Expenditure in excess (h) Pensions divisions are co-terminus. the Society are recognised in the Society’s financial of €500 is capitalised and depreciated over Pensions and post retirement benefit schemes statements as income and the equivalent amount its useful life. Expenditure less than this amount are accounted for in accordance with FRS 17 (c) Income capitalised on the balance sheet. This is in line is charged to the Statement of Financial Retirement Benefits. The cost of contributions Income is analysed as restricted, unrestricted with the Statement of Recommended Practice, Activities. payable to the scheme and any movements or designated. Restricted funds represent income Accounting and Reporting by Charities (2005). on the scheme surplus or deficit are recognised recognised in the financial statements which is Properties are stated at original cost where in the Statement of Financial Activities. Pension subject to specific conditions imposed by the (vi) Grant Income purchased. Donations/Gifts of properties are scheme assets and liabilities are measured donors or grant making institutions. Unrestricted Grant income is recognised in full once entitlement, valued at open market value at the date of using market values and the pension scheme funds represent amounts which are expendable certainty and measurement are met. donation. liabilities are measured using the projected unit at the discretion of the Society, in furtherance method and discounted at an AA corporate of the objectives of the charity. Such funds may (vii) Commercial Training Properties donated for use by, and now owned bond rate. The pension scheme deficit is be held in order to finance working capital or Income from Commercial Training activities by, the Society are currently recognised in recognised in full on the balance sheet. Full capital expenditure. Designated funds are income is recognised as earned i.e. as the related the Society’s financial statements as income actuarial valuations are obtained at intervals received without restriction but allocated to a goods and services are provided. and the equivalent amount capitalised on the not exceeding three years. specific project area by the Board of Directors. balance sheet. This is in line with the Statement (viii) Tax Efficient Giving of Recommended Practice, Accounting and (i) Stocks Income tax rebates on donations received Reporting by Charities (2005). Stocks are stated at the lower of cost and is recognised on notification from Revenue net realisable value. Provision is made for Commissioners of the confirmation of the amount The carrying value of tangible fixed assets obsolete, slow-moving or defective stock and when there is certainty of receipt. is reviewed annually for impairment if events where appropriate. or changes in circumstances indicate the

36 37 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011

1. accounting policies (continued)

2. VOLUNTARY INCOME 2011 2010 (j) Taxation (o) Reserves policy Unrestricted Restricted Total Total No charge to current or deferred tax arises It is the policy of the Irish Red Cross Society €000 €000 €000 €000

as the Irish Red Cross Society has been to retain sufficient reserves to cover future Regular Giving 426 - 426 479 granted charitable status. commitments in relation to its ongoing function and mandate. These provisions are intended to finance: Public Appeals and Events 1,036 1,288 2,324 5,633 (k) Value Added Tax Tax Efficient Giving 291 - 291 182 Irrecoverable value added tax is allocated to • Working capital requirements the category of expenditure to which it relates. • Potential setbacks in income Legacies 83 - 83 364 • Fixed assets required for ongoing (l) Provisions operations Corporates, Major Donors and Trusts 379 - 379 36 Provisions are recognised when the Irish Red • Unexpected/emergency expenditure. Property Donated 410 - 410 - Cross Society has a legal or constructive financial obligation, that can be reliably estimated and • Restricted funds Grant Income 1,145 682 1,827 1,131 for which there is an expectation that payment Restricted funds are funds restricted for a specific will be made. use as defined by the donor or grant making body. Royalties Income 65 - 65 46

3,835 1,970 7,871 (m) Operating leases • Designated funds Total 5,805 Rentals under operating leases are charged on Designated funds are unrestricted funds As outlined in note 1, Legacy income is recognised once the Irish Red Cross Society has a straight-line basis over the lease term, even which have been allocated by the Board entitlement to the funds, the amount can be quantified and there is certainty of receipt. if the payments are not made on such a basis. of Directors to assist in the furtherance of the objectives of the Society. Donations, Church Gate collections and Fundraising activities are recognised (n) Foreign currencies in line with the accounting policy 1c (iii) when cash is lodged to the bank. Foreign currency transactions are translated • Unrestricted funds at the rates ruling at the date of the transaction. Unrestricted funds are funds which are expendable at the discretion of the Board of Directors, Monetary assets and liabilities arising in in furtherance of the objectives of the Society. Grant Income Royalties foreign currencies have been retranslated Unrestricted grant income, paid by the Vote of the Royalties comprise income earned from the at the rates ruling at the balance sheet date. Department of Defence, amounting to €821,000 (2010: works of the French writer Joseph Kessell €821,000), is towards the salaries and administration who bequeathed the royalty rights of his Exchange differences have been included costs of the Head Office of the Irish Red Cross Society. books to the Irish Red Cross Society. in the profit and loss account for the year. The Restricted Government Grant is in relation to Property Donated funding received from the International Federation A property, Kilbehenny House in Limerick, was of Red Cross and Irish Aid in relation to the bilateral donated to the Society in 2001. This property is programme in Niger. Also within restricted income recognised in the financial statements of the Society is a Department of Defence grant amounting to in the current year, at original cost less estimated €130,000 which subsequently is transferred to accumulated depreciation to date, due to the unknown the International Committee of Red Cross. nature of the title and the value of this property in prior years. As disclosed in note 9, the value of this Other Grant Aid comprises grants from the Health property at the date of donation was €500,000 Service Executive (€32,000), Wicklow County and is recorded at this value less depreciation. Partnership (€137,000), Coast Guard (€7,000), This was independently valued retrospectively Department of Transport, Tourism and Sport (€5,000), by Edward Walsh, Auctioneers & Valuers. Voluntary Educational Department (€7,000), Mountain Rescue Ireland (€2,000) and County Councils (€4,000).

38 39 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011

2011 2010 3. TRADING ACTIVITIES 2010 7. RESOURCES EXPENDED 2011 Direct Costs Support Costs Total Total Unrestricted Restricted Total Total €000 €000 €000 €000 €000 €000 €000 €000 Costs of generating funds Products and Manuals 43 - 43 40 Voluntary income 835 - 835 459 Medical and First Aid Services 633 - 633 689 Trading activities 1,002 - 1,002 1,336 Training 656 - 656 821

1,332 1,837 - 1,837 1,795 Total - 1,332 1,550

All income from trading activities relates to third party activities. Charitable activities

Emergency response and recovery

4. Investment Income 2011 2010 Unrestricted Restricted Total Total Ireland 46 - 46 587 €000 €000 €000 €000 International 1,526 - 1,526 4,379 Bank Interest 34 130 164 139 1,572 - 1,572 4,966 Rental Income 11 - 11 10 Resilience Total 45 130 175 149 Ireland 2,125 - 2,125 3,676 Income included in investment income comprises bank interest received and receivable together with rental income received and receivable. Rental Income relates to the letting of properties on an informal basis. International 872 - 872 -

5. RESILIENCE 2,997 - 2,997 3,676 2011 2010 Unrestricted Restricted Total Total Health and social care €000 €000 €000 €000 Care and support programmes 1,503 - 1,503 1,223 Duties 605 - 605 631

1,503 - 1,503 1,223 Government Grants - - - 247

Supporting the movement - 909 909 742 Membership Fees 47 - 47 39

- 909 909 742 Training 247 - 247 355

Governance costs Sundry 13 - 13 128

Subscriptions to Federation 127 - 127 185 Total 912 - 912 1,400

Staff 321 - 321 268

6. HEALTH AND SOCIAL CARE Fees to auditors for audit of financial statements 123 - 123 52 2011 2010 Unrestricted Restricted Total Total Fees to auditors for other services - - - - €000 €000 €000 €000

Training 8 - 8 - Other goverence costs 36 - 36 219

Sundry 3 - 3 - 607 - 607 724

Community Support Services 16 - 16 34 Total 8,516 909 9,425 13,126

- Total 27 27 34

40 41 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011

8. TAXATION 11. DEBTORS: (Amounts receivable within one year)

2011 2010 The Society, charity number CHY3950, is exempt from taxation on Income under Section €000 €000 207 Taxes Consolidation Act 1997, as it is for charitable purposes. Trade debtors 143 183

Prepayments 578 679

9. TANGIBLE FIXED ASSETS 721 862

Cost Freehold and Ambulance, Sea Leasehold Rescue and Fixtures Fittings Computer Premises Equipment and Equipment Equipment Total €000 €000 €000 €000 €000 12. CREDITORS: (Amounts falling due within one year)

At 1 January 2011 1,579 5,216 486 660 7,941 2011 2010 €000 €000 Additions 1,156 182 26 89 1,453 Trade creditors 185 403

At 31 December 2011 2,735 5,398 512 749 9,394 Accruals 641 755

Accumulated depreciation Other creditors 79 90 At 1 January 2011 352 2,135 318 386 3,191 Bank loans - 4 Charge 55 323 23 68 469 905 1,252 3,660 At 31 December 2011 407 2,458 341 454

Included within other creditors is an amount for PAYE/PRSI of €57,000 (2010: €51,000) Net book value

At 31 December 2011 2,328 2,940 171 295 5,734

At 31 December 2010 1,227 3,081 168 274 4,750 13. CREDITORS: (Amounts falling due in more than one year)

2011 2010 The Society’s properties are included at historical cost. €000 €000

Bank loans 236 253 As disclosed in Note 2, a property which was gifted to the Society in 2001 was independently valued in 2011, retrospectively, as at the date of donation for €500,000 236 253 by an independent auctioneer Edward Walsh, Auctioneers & Valuers. There is a mortgage/charge held by Bank of Ireland over Unit 3, Ashbourne Business Park, Limerick. The Society’s properties include the Head Office premises, national, regional and training centre offices.

10. STOCKS 2011 2010 €000 €000

Supply stocks 118 116

Manuals 66 38

184 154

There are no material differences between the replacement cost of stock and balance sheet amounts.

42 43 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011

14. STAFF EMOLUMENTS AND DIRECTOR EXPENSES 14. STAFF EMOLUMENTS AND DIRECTOR EXPENSES (Continued)

Total staff emoluments (including casual staff) for the year were as follows: 2011 2010 The average number of volunteers working for the Irish Red €000 €000 Cross Society during the year was as follows: 2011 2010 No. No. Salary costs 2,310 2,147 National Services 5,210 5,531 Employers PRSI 203 208 Total 5,210 5,531 Pensions costs 57 102

2,570 2,457

Directors expenses: The number of employees whose emoluments, as defined for taxation 2011 2010 purposes (basic pay, vehicle and medical insurance benefits), €000 €000 amounted to over €60,000 in the year were as follows: 2011 2010 No. No. Expenses incurred by directors and reimbursed by the Irish Red Cross Society 7 6 €60,001 - €70,000 4 2 Expenses incurred by the Irish Red Cross Society on behalf of directors 6 7 €70,001 - €80,000 2 2 Directors’ indemnity insurance cover cost 2 1 €80,001 - €90,000 - - Total 15 14 €90,001 - €100,000 1 1

2011 2010 €170,001 - €180,000 - 1 Number of directors receiving expenses 10 9 7 6

The Irish Red Cross Society relies substantially on voluntary services provided

The average number of full-time equivalent staff employed by by its members across the country. It is not possible to quantify, in monetary 2011 2010 the Irish Red Cross during the year was as follows: terms, the value of these services to the Irish Red Cross Society. No. No.

Fundraising 3 4 Directors’ expenses are for travel and accommodation costs incurred.

Finance 4 4 None of the directors received any remuneration during the year (2010:- €nil). Services & Commercial Training 35 15

International services 5 5

Governance 5 5

Utilities 1 1

Communications 1 1

International delegates 10 17

Total employed by headcount 65 51

44 45 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011

15. PENSIONS 15. PENSIONS (CONTINUED)

The assets of the scheme and the expected rate of return were: The Irish Red Cross Society operates a funded defined benefit pension scheme. The assets of the

scheme are vested in independent trustees for the benefit of the employees. The defined benefit Rate Rate Rate Rate Rate scheme is closed to new entrants. of return of return of return of return of return expected Value at expected Value at expected Value at expected Value at expected Value at 31/12/11 31/12/11 31/12/10 31/12/10 31/12/09 31/12/09 31/12/08 31/12/08 31/12/07 31/12/07 The Society accounts for pensions in accordance with FRS 17 “Retirement Benefits”. The pension % €000 % €000 % €000 % €000 % €000 costs charged as operating expenses/resources expended in the Statement of Financial Activities Equities 7.0% 878 7.20% 1,005 7.00% 1,067 7.00% 775 4.0% 648 were as follows:

2011 2010 Bonds 4.0% 1,276 4.20% 1,240 4.00% 1,040 4.00% 740 2.50% 112 Total Total €000 €000 Property 6.0% 75 6.20% 78 6.00% 83 6.00% 99 7.0% 1,449 Current service costs (57) (102) Cash 2.0% 40 2.50% 50 2.50% 53 2.50% 87 6.0% 131 Net finance cost (57) (102) Other 6.75% 86 0.00% - 0.00% - 4.00% 36 0.00% -

Other finance income: Expected returns on assets 132 125 Total market Other finance costs: Interest on pension scheme liabilities (119) (135) value of 2,355 2,373 2,243 1,737 2,340 assets Total other finance (costs) / income 13 (10) Present value of scheme (2,709) (2,512) (2,636) (2,197) (2,296) liabilities The accrual for defined contribution pension costs at 31 December 2011 was €nil (2010: €nil). Net pension Defined benefit scheme (deficit)/ (354) (139) (393) (460) 44 surplus

The Irish Red Cross Society undertakes an actuarial valuation of the scheme every 3 years. These valuations are undertaken by qualified, independent actuaries. The effective date of the last actuarial valuation was 1 January 2011.

The valuations employed for FRS 17 have been based on the most recent funding valuation for the scheme adjusted by the independent actuary to allow for the accrual of liabilities up to 31 December 2011 and to take account of financial conditions at that date. The valuations used for FRS 17 purposes have been prepared using the projected unit method and assets for this purpose have been valued at market value.

Information in respect of the scheme, as at 31 December 2011 with prior year comparatives as required under FRS 17, is set out below:

Principal actuarial assumptions (% per annum)

At 31/12/11 At 31/12/10 At 31/12/09 At 31/12/08 At 31/12/07

Rate of increase in salaries 3.0 3.0 3.5 3.5 4.0

Rate of increase in pensions in payment 2.0 2.0 2.0 2.0 2.0

Discount rate 4.6 4.68 5.1 5.6 5.4

Inflation assumption 2.0 2.0 2.0 2.0 2.5

46 47 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011

15. PENSIONS (CONTINUED) 16. OBLIGATIONS UNDER OPERATING LEASES

Analysis of the amount charged through the Statement of Financial Activities 2011 2010 €000 €000 2011 2010 Property Other Total Total (Credit) / Charge to staff costs: €000 €000 €000 €000

The amount payable within the next 12 months Current service cost (57) (102) on leases expiring:

Death in service costs (7) (4) Within one year 28 29 57 29

Expected return on pension scheme assets 125 132 In two to five years 37 - 37 29

Interest on pension scheme liabilities (135) (119) After five years - - - -

(119) (48) Total 65 29 94 58

The Irish Red Cross Society has a number of properties which it sub-leases, where there is no formal

lease agreement in place. Therefore the above analysis is an estimate of such leases. Actuarial (losses)/gains on Defined Benefit Scheme 2011 2010 €000 €000

Actual return less expected return on pension scheme assets (194) (83) 17. RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH Experience gains arising on the scheme liabilities 71 511 (OUTFLOW) / INFLOW FROM OPERATING ACTIVITIES

Changes in assumptions underlying present value of scheme liabilities (77) (232) 2011 Note €000 (200) 196 Reconciliation of net incoming resources to net cash outflow from operating activities

Net outgoing resources (1,214) Changes to the fair value of plan liabilities are as follows: 2011 2010 €000 €000 Investment Income 2 (164) Opening value of scheme’s liabilities (139) (393) Depreciation charge 469 Service cost (57) (102) Value of property donated (410) Other finance income/(costs) 13 (10) Increase in stocks (30) Employer contributions 29 170 Increase in debtors 142 Actuarial (loss)/gain (200) 196 Increase in creditors (329) Closing value of scheme liabilities (354) (139) Net Cash outflow from operating activities (1,536)

As this is the first year since inception of the Irish Red Cross Society that consolidated financial statements have been prepared, a comparative reconciliation of net incoming resources to net cash (outflow)/inflow from operating activities cannot be prepared as at 01 January 2011.

48 49 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) / FOR THE YEAR ENDED 31 DECEMBER 2011

18. ANALYSIS OF NET FUNDS PER CASH FLOW STATEMENT 22. PROGRAMME COMMITMENTS 2011 2010 At 1 January Investment At 31 December €000 €000 2011 Cash Flow Losses 2011 €000 €000 €000 €000 Niger Food Security Programme 18 12

Cash at bank and in hand 8,774 (2,436) - 6,338 Total 18 12

Loan due after one year (257) 21 - (236)

8,517 (2,415) - Total 6,102 23. RELATED PARTY TRANSACTIONS

19. MOVEMENT IN FUNDS The nature of the Irish Red Cross Societies activities means that it has connections to a number of organizations.

However, none of these relationships have the ability to exercise influence or control over the activities of the Irish At Start Incoming Outgoing Transfers At End Of Year Resources Resources Between Funds Of Year Red Cross Society. €000 €000 €000 €000 €000

Restricted Funds 3,558 2,100 (3,755) - 1,903 During the period, the Irish Red Cross Society provided income received from the Department of Defence to the International Federation of Red Cross of €130,000 (2010: €130,000). Unrestricted Funds 8,644 6,084 (5,874) 122 8,976 During the year, the Irish Red Cross Society reimbursed expenses to Director’s amounting to €15,000 Designated Funds 694 67 (36) (122) 603 (2010: €14,000).

Total 12,896 8,251 (9,665) - 11,482

20. ANALYSIS OF NET ASSETS 24. POST BALANCE SHEET EVENTS

2011 2010 No significant events have occurred since the balance sheet date which would require adjustments to the amounts Restricted Designated Unrestricted Total Total as disclosed in the financial statements. €000 €000 €000 €000 €000

Tangible assets - - 5,734 5,734 4,750

Net Current assets 1,903 603 3,832 6,338 8,538 25. COMPARATIVE FIGURES Creditors: amounts falling - - (590) (590) (392) due after one year Comparative figures have been grouped on a consistent basis with the current year presentation.

Total 1,903 603 8,976 11,482 12,896

21. CAPITAL COMMITMENTS 2011 2010 €000 €000

Capital commitments - 47

Total - 47

50 51 A Somali refugee woman who has just arrived at the Dagahaley camp, walks past makeshift shelters, in Dadaab, near the Kenya-Somalia border, April 3, 2011. Dadaab is the biggest refugee camp in the world, with more than 332,000 refugees mainly from Somalia.

Photo: © Reuters/Thomas Mukoya In October, Van province in Eastern Turkey was rocked by an earthquake. This quake was equal to the one that struck Haiti in 2010. Hundreds of people died and thousands were injured. Photo: © Reuters

In 2011, the Irish Red Cross supported the Haitian Red Cross and International Red Cross in HIV and Violence prevention activities in Haiti. Photo: © IRFC

54 55 16 Merrion Square, Dublin 2, Ireland.

t +353 (0) 1 642 4600 f +353 (0) 1 661 4461 e [email protected] www.redcross.ie