RNIB Group annual report and financial statements 2015/16

Royal National Institute of Blind People (RNIB) Trustees’ report and the auditedconsolidated 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 Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The 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 Republic of Ireland (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and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

This is the first year of reporting under the new Charity SORP (FRS 102) and this has had an impact on some aspects of the Trustees’ report and the financial statements. Where required, the prior year’s figures have been restated to incorporate these changes. Full details are provided in note 27.

This report covers the work of the RNIBgroup of charities throughout the UK, which includes Action for Blind People (Action), RNIB Charity, Cardiff Institutefor the Blind (CIB), Bucks Vision, and RNIB Specialist Learning Trust. These charities are responsible for delivering the charitable activities of the Group.

The Group also includes four shell charities:National Library for the Blind;The Talking Newspaper Association of the United Kingdom (NTNM); Blind Centre for Northern Ireland; and Glynn Vivian Home of Rest for the Blind. In addition, the Group includes three wholly owned trading subsidiaries: RNIB Enterprises Limited; RNIB Services Limited; and MPH Accessible Media Limited.

Contents

Chair and Chief Executive Officer introduction / 3
Trustees’ strategic report
Structure and objectives / 5
Our strategy / 10
Our values / 10
Growth and change / 10
Our work / 11
Financial review / 16
Fundraising review / 19
Investment policy / 20
Reserves policy / 22
Remuneration policy / 23
Risk management / 23
Exposure to price, credit, liquidity and cash flow risk / 25
Going concern / 25
Our volunteers / 26
Employing disabled people / 27
Engagement with staff / 27
Health, safety and the environment / 28
Accounts
Independent auditors’ report to the Trustees of RNIB / 30
Consolidated statement of financial activities for the year ended 31 March 2016 / 33
Balance sheets as at 31 March 2016 / 36
Group cash flow statement for the year ended 31 March 2016 / 38
Notes to the financial statements for the year ended 31 March 2016 / 40
Who’s who at RNIB / 116

Chair and Chief Executive Officerintroduction

As the RNIB group of charities, we are united in making every day better for everyone affected by sight loss. Every day of this year we have worked to ensure that newly diagnosed people are reached sooner; people are supported to live the independent lives they choose; society is a more inclusive place and no one needlessly loses their sight.

This has been the second year of our 2014/19 strategy and inside this report you will find out more about the progress we have made towards achieving our goals.

We are working in a fast-changing external environment that has had an impact on our business plan. We identified significant opportunities presented by statutory changes such as the Care Act and the Accessible Information Standard, threats to welfare benefits for blind and partially sighted people and significant challenges for local government finances following the Spending Review. Ongoing austerity in the wider public sector and financial challenges for the NHS hasmade the contracting environment very difficult.

This year, we also conducted a major piece of research called My Voice, using a panel of more than 1,200 registered blind and partially sighted people, to monitor progress of our strategy on the lives of the wider population. The findings have significant implications for our understanding of what customers need most from us. This research tellsus that sight loss tends to happen gradually and residual vision is unstable. This means that people may need support to learn and relearn how to adapt over time. We found that: after being given the diagnosis of sight loss, four in five people were not offered any emotional support; only one in four registered blind or partially sighted people of working age were in employment; and over half of working age people were struggling financially. When asked what would make the biggest difference to make every day better, travel, transport and mobility were by far the most frequent answers. Low incomes, inaccessible information, difficulties in getting around and digital exclusion all contribute to feelings of isolation.

These findings present a stark picture. My Voice brings a clear message directly from blind and partially sighted people that they are missing out on crucial services and support. This evidence supports our collaboration through the UK Vision Strategy to work more innovatively than ever before, and we are determined to focus our efforts on making every day better for everyone affected by sight loss.

Everything we have achieved this year has only been possible because of the generosity and commitment of our supporters. Thank you to our donors and the people who leave us a legacy in their Will. Thank you to the local fundraising groups who work with their local communities to raise money for us. Thank you to our army of volunteers whose time helps us to deliver vital services. Thank you to the people who step forward to campaign at a local and national level to fight for the rights of blind and partially sighted people everywhere.

Each and every one of you, along with dedicated staff across the RNIB Group, is making a huge difference to the lives of people with sight loss in the UK.

Lesley-Anne Alexander CBE, Chief Executive Officer

Kevin Carey, Chair

Trustees’ strategic report

Structure and objectives

Our legal structure

Royal National Institute of Blind People (RNIB) is a registered charity, number 226227 in England and Wales, and number SC039316 in Scotland. Established in 1868, RNIB was incorporated under Royal Charter in 1949, with a Supplemental Charter in 1993 (revised in 2007 and 2014).

On 1 September 2015, RNIB group of charities was restructured in order to continue to support the effective delivery of our strategy. RNIB Charity and Action, both subsidiaries of RNIB, focus on customers in terms of service delivery. We also amalgamated support functions to ensure efficiency for all charities within the Group.

The restructure and amalgamation resulted in the following changes:

  • RNIB country operations in Cymru, Northern Ireland and Scotland, were moved from RNIB Charity to Action
  • The Helpline and advice service was moved from RNIB Charity to Action
  • All group corporate support service functions are now delivered by RNIB Group
  • Engagement activities were moved from RNIB Charity and Action to RNIB Group.

RNIB is governed by a Trustee Board. The Trustee Board meets a minimum of four times a year and makes all important strategic, policy and financial decisions, and has overall responsibility for RNIB Group activities. There are no restrictions on the way in which RNIB can operate.

Of those serving on the Board, six Trustees are appointed by RNIB Charity and four Trustees are appointed by Action to serve on the Board. Two independent Trustees are appointed by the Board itself.

Trustees may serve a term of office of up to three years, with their terms normally aligned to their term on the appointing charity. A Trustee may serve for no more than three consecutive terms of three years, other than in the case of an Honorary Officer (RNIB Group Chair, Vice-Chairs or Honorary Treasurer) in exceptional circumstances approved by the Board. An induction pack is provided to all new Trustees, and they are invited to attend an intensive induction day, during which they are provided with information on the key services provided by RNIB and the main challenges and policy issues facing RNIB. Each Trustee receives an annual appraisal, during which any individual training needs are identified. Where collective training needs are established, these are delivered to the Board as a whole.

How we are managed

Our management and governance structures changed on 1 September 2015. The key committees that support the Board, and a description of their areas of responsibility are as follows:

  • RNIB Group Audit Committee: overseeing effective auditing, financial reporting, internal controls and risk management within RNIB
  • Fundraising Committee: supporting the delivery of the strategic priorities and outcomes in the RNIB Group Strategy 2014/19, by developing fundraising strategies and advising on key issues relating to their implementation
  • Governance Committee (and Nominations Committee): taking an overview of the governance arrangements of RNIB and supporting the Board and Strategic Management Team (SMT) in ensuring that effective governance structures are in place. Appointing a panel to review nominations and act as interview panel for Trustee applicants
  • Investments Committee: overseeing the effective investment of funds for RNIB on behalf of the Board. Acting in an advisory role on the effective investment of funds to the Trustees of the RNIB Retirement Benefits Scheme
  • Remuneration Committee: reviewing the salaries for the Chief Executive Officer (CEO) and Group Directors and other relevant matters, such as the general position relating to remuneration at RNIB, and reviewing whether it is in the interests of RNIB to pay or contract with Trustees or connected persons for the provision of services to the organisation, rather than any other company.

The day-to-day management of RNIB is delegated to SMT. SMT is comprised of the CEOand the:

  • Managing Director, Places of RNIB Charity;
  • Managing Director, Solutions of RNIB Charity;
  • Chief Executive of Action;
  • Group Director, Engagement;
  • Group Director, Fundraising;
  • Group Director, People;
  • Group Director, Resources;.

The CEO of RNIB, with the support of the rest of SMT, reports to the Board of Trustees for approval of all major decisions. Full details of SMT can be found in the section “Who’s who at RNIB”.

Lesley-Anne Alexander, CEO, has announced that she will be retiring at the end of September 2016. Trustees have started the process for recruiting her replacement.

RNIB Membership

In February 2016, we launched RNIB Connect, which brought together around 24,000 blind and partially sighted people, who were already engaged with us through RNIB Membership, Campaigns supporters’ network, and Action Connect. This new and expanding community is free to join, has no other barriers to entry and is intended to help more blind and partially sighted people to meet one another for social connection or peer support.

The expanded community will also form the basis of our evolving approach to being led by blind and partially sighted people, by delivering a more participative model of leadership at all levels of the organisation. RNIB Connect will be led at local level by its members, and will be the route by which customers can influence decisions, shape our thinking, and co-deliver our services.Under the single community, all RNIB Connect members who are aged 16 or over; are blind or partially sighted; are resident in the UK; and who register to vote, will be able to elect RNIB Charity Trustees.

Membership at March 2016 was 24,087, a 78 per cent increase on the membership fromMarch 2015 (13,548). The target for March 2017 is 35,000.

Our registered office

We are registered at 105 Judd Street, London WC1H 9NE;our telephone number is 020 7388 1266.

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under that law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charity and the group and of the incoming resources and application of resources of the charity and the group for that period. In preparing these financial statements, the trustees are required to:

  • select suitable accounting policies and then apply them consistently;
  • observe the methods and principles in the Charities SORP;
  • make judgments and estimates that are reasonable and prudent
  • state whether FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” has been followed, subject to any material departures disclosed and explained in the financial statements; and
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the groupand enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Statement of public benefit

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, “Charitable Purposes and Public Benefit”.

RNIB’s charitable objects are enshrined within its Charter, and as such, the Trustees ensure that this Charter is carried out for public benefit through our four strategic priorities. This is done through delivery of services that are primarily aimed at blind or partially sighted people, and, where appropriate, open to all who might benefit throughout the United Kingdom.

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

Where we provide specialist services or products for which we charge and these are supplied directly to blind and partially sighted people then we provide a significant subsidy from our own charitable funds. Where fees are paid through central or local government or commercial organisations, then the pricing model covers the costs for the delivery of the service and long term maintenance and development. We also, where necessary, provide individuals with access to assistance in applying for funding.

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

Relationship with other charities

We maintain close links with and support the aims of, other organisations such as local, national and international charities working with, or for, people with sight problems. We also work closely with other disability charities on issues of mutual concern. We deliver services in partnership with some societies for blind and partially sighted people, and some of our funding comes from charities and trusts which support our aims.

Between April 2009 and February 2010, Action and CIB became subsidiaries of RNIB enabling us to share skills and expertise to reach more people with sight problems in a more cost-effective way.

In September 2010, the Charity Commission approved a Scheme whereby RNIB became the sole corporate Trustee of the Glynn Vivian Home of Rest for the Blind.

In April 2013, RNIB Specialist Learning Trust was set up as an Academy Trust, which then took on responsibility for the Three Spires School in Coventry in September 2013, providing education for primary aged pupils with special educational needs.

In April 2014, RNIB Charity was set up. On 1 July 2014, we restructured the RNIB group of charities in order to support the effective delivery of the new strategy. RNIB Charity provides a focus for customers in terms of service delivery.