sense annual report and accounts 2014

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STATEMENTCHAIRMAN’S

and weekend breaks. Sense was founded by volunteers, and nearly sixty years on, volunteers remain as important as ever.

Our Trustees do their utmost to guide us through these difficult times and on behalf of our Council I would like to extend our warmest appreciation to all our friends and partners for your continued interest and support in our remarkable charity.

John Crabtree OBEChair

There is no doubt that Sense, along with our colleagues in the sector, face huge challenges. We all know that funding and resources are reducing but the needs of our beneficiaries are growing. This places pressures on all of us as we strive to do the best we can. Our staff always go ‘the extra mile’ and I am delighted to acknowledge the continued commitment of our dedicated colleagues.

We have wonderful support for our work and in these difficult times it makes it all the more important to recognise everyone who donates or raises money for us. This includes individuals who undertake great feats such as running the marathon, or holding coffee mornings and selling raffle tickets – but also the Trusts who give us grants and people who remember us in their will. Large or small, every donation counts. Sense simply couldn’t continue to provide our services without you.

We are also very grateful to our thousands of volunteers. I am always inspired and moved to hear stories of the work being done by volunteers throughout Sense – in our shops, in our services, as trustees, as fundraisers, in our offices, our cafes, supporting local groups, on our holidays

Word of thanks

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Sense, The National Deafblind and Rubella AssociationCouncil’s report and accounts for the year ended 31 March 2014

STATEMENTCHIEF

EXECUTIVE’S

Growing stronger together2013-14 was the first year of Sense’s new strategy, Growing Stronger Together. The strategy is, in part, a response to the economic challenges facing social care and our sector more generally. We knew we would have to be innovative and find different ways of doing things so our plans were developed with that in mind.

It’s hard to believe we are only twelve months in and have achieved so much. Life and strategies are not without their challenges, so things we hoped would happen have not and achievements we never dreamt of have. Generating funds is still a struggle but we have widened the portfolio of funding with different sources and this diversification brings great opportunities. The growing work around Arts and Wellbeing is supporting people to express themselves in music, art, drama and to show off their talents around the UK in some wonderful exhibitions.

We are working alongside a number of schools and colleges to learn together how we can improve the experiences of young people moving into adulthood. Indeed we are working with the young people themselves thanks to grant funding from the Department of Further Education.

The Department of Health supports our screening tool and training package on the early recognition of sight and hearing loss in older people. Our new services such as social prescribing are developing and are proving to be particularly valued by older people. It’s wonderful that Sense can offer some practical support and respond to the impact of loneliness.

We are working with many more partners, not just from the voluntary sector but business, local communities and our colleagues in local authorities, health and education. By working collaboratively we can do so much more and our strategy actively promotes partnerships.

There have been many achievements over the year - some large, others smaller but no less valued. Seeing young people respond to animals at our stables provision, or being part of the Sense wonderful annual tea party, where staff and service users come together in a ‘sea’ of baking and cakes are extraordinary moments and just as important as buying the land for TouchBase.

TouchBase is our major new project which we hope to start building in 2015. In keeping with the earlier theme it will be multipurpose involving business and local communities. As well as providing direct support it will have a public café, arts and wellbeing suiteand children and family facilities. It will be modelled on social enterprise so it is sustainable. We have recently had a tremendous boost with a £2.1m grant from the Regional Growth Fund. As far as we understand we are the first social care charity to be awarded this type of funding. It is a great recognition that charities generate business and employment and should be recognised as important contributors to social enterprise.

So, as in every year it’s only made possible by staff, colleagues, volunteers, families and deafblind people. Thank you to everyone who has contributed to another successful year at Sense.

Gillian Morbey OBEChief Executive

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Chairman’s Statement 2

CEO’s Statement 3

Who Sense helps and how 6

Governance and internal control 11

Our plans for the future 15

Sense Group 30

Financial review 2013/14 32

Independent auditors’ report to the members of Sense, The National Deafblind and Rubella Association 37

Consolidated statement of financial activities for the year ended 31 March 2014 40

Consolidated balance sheet as at 31 March 2014 42

Company balance sheet as at 31 March 2014 43

Consolidated summary income and expenditure account for the year ended 31 March 2014 44

Consolidated cash flow statement for the year ended 31 March 2014 45

Accounting policies 46

Notes to the financial statements for the year ended 31 March 2014 49

Major supporters 77

Charity information 79

Contents

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Who Sense helps and how

Sense services and supportSense is a charity that supports children and adults who are deafblind or multi-sensory impaired. Specialist information, advice and services are provided to deafblind people, their families, carers and the professionals who work with them. People who have single sensory impairments with additional disabilities are also supported. Services are available and are funded through charitable donations, grants and statutory fees.

Our structure

Operations Information, Research, Policy and Communications Supported by:

Community services Our services range from resource centres, to our college where deafblind people can learn and develop; from the training and provision of intervenors and communicator guides who assist deafblind people to interact with the external world, and very importantly holidays for adults.Support for children and young peopleIncluding: assessments and support during transition; intervenor/communicator-guide services; holiday and activity schemes; supported living assistance; support groups and forums; behaviour support; education, including schools liaison and statementing support; training and work placement.Accommodation services are tailored to individual needs. We provide residential services and supported living; helping people to live in their own homes.

• Information to deafblind people, their carers and professionals.

• Undertaking our own research and in partnership with other organisations, to increase understanding of deafblind issues.

• Support from our Legal Team for deafblind people facing problems in accessing health and social care, education or benefits.

• Campaigning to ensure that public policy sufficiently recognises the needs of deafblind people.

• Increasing public awareness of deafblindness.

• Fundraising: individual donations and grants.

• Trading (including charity shops whose profits are donated to Sense).

• Statutory fees.

The people that need our support• Approximately 257,000 people in the UK have significant hearing and sight impairment.• Many also have additional disabilities and/or learning and other difficulties. • The number of older people with both sight and hearing loss will grow significantly over the

next decades.• The scale of the challenge globally is also great. Sense International is supporting deafblind

people in four areas around the world.

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What drives us

OperationsInformation, Research, Policy and Communications

Supported by:

A world in which all deafblind children and adults can be full and active members of society.

To support and promote the interests of people who are deafblind, multi-sensory impaired, or who have a single sensory impairment with additional needs

Our values underpin our vision and purpose and guide us in all that we do. We aim to show :• Honesty in how we behave• Aspiration in our approach• Accountability for our actions• Recognition of people’s contribution and worth• Trust in each other.

The ‘I’ statements put these values into effect and describe our behaviours and expectations. They flow into our practice, through induction, training, information materials, policies, quality audits and staff performance reviews.

The ‘I’ statements:• I will listen to others.• I will understand and respond.• I will respect others.• I will be honest and open.• I will participate and contribute.• I will take informed risks.• I will find things to celebrate. • No decision about me, without me.

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Children and familiesChildren born with vision and hearing impairments, and often with other disabilities, need skilled help from a wide range of professionals. Sense specialists provide vital early support to deafblind and multi sensory impaired children, their families and the professionals who work with them. We promote effective multi-agency working, carry out assessments, and develop individual programmes that will help each child to reach their potential. We also work closely with government and other agencies to ensure that the needs of deafblind children are fully taken account of.

AdultsSense believes that each individual should be able to choose the lifestyle and support that is right for them. Our specialist accommodation services, including both residential and housing support, and also community services, enable people to live as independently as possible, offering a range of housing, educational and leisure opportunities to suit each particular individual. Our specialist Sense College, located at eight different sites, offers specifically designed multi-sensory education centres for young people and adults who have sensory impairments and additional disabilities. Our new arts and wellbeing strategy offers a range of opportunities to people with multi-sensory impairments.

Older peopleAs the demography of the population changes, increasing numbers of people are experiencing combined sight and hearing difficulties as they get older. Sense provides support, information and training to enable older people to live as independently as possible – overcoming barriers and combating the isolation that many experience. This includes providing communicator guide schemes in some parts of the country and working with local authorities to help them provide such schemes themselves.

Sense continues to campaign strongly to ensure that the needs of older people with combined hearing and sight loss are recognised. We are one of five partner organisations of the Campaign to End Loneliness and following our research project with Birmingham University into how deafblind people are supported in care homes, have produced our own publications for older people who may be facing loss of both their sight and hearing, and their families and carers. We are now working with a range of partner organisations on training packages using a screening tool for early recognition of sight and hearing loss in older people.

Campaigns, policy and awarenessSense strives to increase understanding of deafblindness among service providers, opinion formers and others – and campaigns vigorously for improved rights and access for deafblind people to the wider community. We have been able to effectively influence the Children and Families Act 2014, the Care Act 2014, the Social Services and Well-Being Act (Wales) and the associated regulations and guidance. This will ensure that the needs of deafblind people are taken into account.

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Sense receives funding from the Department of Health Strategic Partner Programme for health policy work. This has enabled us to appoint a Health Policy Officer and to engage with a number of Department of Health initiatives such as the Information Standard and their work on patient and public experience.

In 2013-14, we increased media coverage nationally, regionally and locally. We launched our new website which had over 181,000 visits in the four months to the end of February. Sense’s growing new social media activity included being `liked’ by over 6,270 people on Facebook; and having 12,038 followers on Twitter, 4000 more than a year ago.

Support networkSense supports families, giving them a voice and enabling them to share information and offer much-needed support to each other. The number of active branches has increased by 2 to 11 in the last year. Most are local groups providing invaluable mutual support between families, while a second Hearing and Sight Impaired group has been set up in the north of England (to complement the one in the south), to offer mutual support to adults with acquired deafblindness. We are also exploring different models of support for our Forums which have their own different focuses, and provide the opportunity for people to offer mutual support and share experiences.

Our Members Sense is a membership organisation. We currently have more than 3,000 members. Membership offers a number of benefits: • regular news, updates and information about services• opportunities to link up with other members to share experiences and

knowledge• local branches and forums• membership of our specialist library• a range of opportunities to get actively involved in supporting Sense, such as

taking part in a campaign or joining an interview panel or steering group.

Our VolunteersWe are delighted that so many people choose to volunteer for Sense. Almost 1,600 people did so in 2013/14 contributing more than 450,000 hours of their time. 1,100 volunteers worked in our shops, 175 on our holiday programme and weekend events, with 120 people involved in community fundraising and a further 300 involved with a range of groups and activities. 9.5% of our volunteers had a multi- sensory impairment.

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Some of our operational successes in the last year – facts and figures

• Supporting deafblind people locally – Over 600 adults were supported by our community-based staff. We also provided 298 children and adults with regular one-to-one community support services, including intervenor services for children and adults with congenital deafblindness, and communicator-guide services for adults with acquired deafblindness.

• Specialist children’s teams provided support to 996 children, young people and their families.

• Accommodation support – We provided places in specialist residential services to 263 deafblind adults, and also provided 24 hour staff support to a further 35 adults living in their own homes – often referred to as supported living services.

• Chances to get away and meet – Our national holidays programme supported 110 deafblind children and adults (with an age range of 5 to 94) to go away on 25 different holidays, made possible by the support of 175 volunteers, (including 4 volunteers who were previously holiday makers themselves) and by funding from the Geoff and Fiona Squire Foundation.

• Specialist day services were provided to 235 adults who live with their families or in residential services provided by other organisations. We also undertook a £1.7m refurbishment of the Anne Wall Centre, substantially improving facilities, increasing capacity and ensuring long term sustainability.

• Our day and college services increased the number of people supported by 16 to 235.

• One-to-one support - We increased the average number of contracted hours we provide each month in the community from 6409 to 7351. In doing so we worked flexibly with service users, families and commissioners, to meet the increasingly varied needs and preferences of the people who are looking to us to support them.

• Direct Payments - The proportion of people using direct payments or their own funds to pay for a community service from Sense was broadly stable at around 23%.

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The Structure of GovernanceDuring the period of the financial year of these financial statements to the time of their adoption by Council, there have been 15 to 16 Trustees, who are also (for the purposes of company law), Directors of Sense, The National Deafblind and Rubella Association.

Their names are set out later in this report.Trustees can be co-opted to Council, or elected at the AGM and can serve two terms of four years. Co-optees are reappointed every year to a maximum of 8 years.

The Chairman is elected by Trustees and it was agreed by Council in 2011, in accordance with the articles, that our current chair should serve an additional four year term.

Council meets four times a year and Trustees are expected to attend all Council meetings.

CommitteesCouncil is supported in its work by a number of sub-committees: Audit and Risk; Finance; Remuneration; and Nominations. Council appoints the members of the sub-committees annually and receives either the minutes from their meetings (for Audit and Finance sub-committees) or reports on their activities. The terms of reference for each of these committees were updated in 2013 and are included in a comprehensive governance handbook.

The Finance Committee’s main purpose is to ensure that the financial resources are being deployed appropriately in furtherance of the strategic objectives. Its membership is at least two Trustees, in addition to the Chair (the Honorary Treasurer) who are appointed annually. The Committee can appoint co-optees who they feel will bring relevant financial expertise. There were two external members for periods during the year. The Chief Executive and the Group Director of Finance and Resources of Sense attend the meetings.

The purpose of the Audit and Risk Committee is to monitor and review the effectiveness of Sense’s internal and external auditing procedures and outcomes, advising and reporting to Sense Council. Its membership is two trustees, in addition to the Chair. The Chief Executive, Group Director of Finance and Resources and the auditors and internal auditors attend these meetings.

CONTROLGOVERNANCE

AND INTERNAL

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The Nominations Committee’s role is to identify skill gaps in Council membership, oversee the recruitment process of Council Members and make recommendations to Council of new members for election or co-option, ensuring that, once appointed, they have an appropriate induction. The membership of the Committee is at least one other Trustee in addition to the Chair (currently the vice-chair of Sense). The Company Secretary or his/her nominee attends the meetings.

The Remuneration Committee’s role is to ensure that Sense’s remuneration strategy for senior staff and its implementation is perceived by all stakeholders to be transparent, fair and effective. Its voting membership will not exceed five, with a quorum of three. The Treasurer of Sense is an ex-officio voting member and at least two of the additional voting members are Trustees of the charity. A fifth independent member with relevant expertise may also be appointed, should the committee feel this to be necessary. The Chief Executive, Group Director of Finance and Resources and the Director of HR are non-voting ex-officio members.

Recruitment of New Trustees/DirectorsProspective candidates to be Trustees for Sense are interviewed and if successful, their appointment is recommended to Council. They are invited to a Council meeting as an observer. With the agreement of Council they are co-opted, until standing for election at the next annual general meeting.

New trustees receive a comprehensive Induction Pack. An appropriate induction plan is put in place which involves internal and external training as necessary, meetings with senior staff and visits to services as appropriate.

Delegated AuthoritySense Council delegates day-to-day operational management of the organisation to the Chief Executive. The broad areas of delegation, for which she is accountable, are set out in the governance handbook.

To ensure these responsibilities are discharged effectively, the Chief Executive is responsible for appointing, managing and developing senior staff to take direct responsibility for these areas and for putting in place appropriate reporting and assurance mechanisms.

The Executive Team meets regularly and includes the Deputy Chief Executive, two group directors and six functional directors.

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The Sense Group includes a number of separate organisations:

• Sense

• SenseInternational

• SenseScotland

Each entity is a registered charity and a company limited by guarantee, with its own Board and Memorandum and Articles. The objects of all three charities are similar and refer to supporting people who are deafblind, or who have a hearing or vision impairment, including those with additional impairments.

Our shared vision is a world in which all deafblind children and adults can be full and active members of society.

Each organisation runs its own activities for supporting and promoting the interests of children and adults who are deafblind or have multi-sensory impairments. Information is given below, but further information can be found in Sense Scotland and Sense International’s own report and financial statements.

GROUPTHE

SENSE

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Sense is the trading name for Sense, The National Deafblind and Rubella Association, which is a registered charity (charity number: 289868) and a company limited by guarantee (company number: 01825301). It is governed by its Articles of Association. Sense works primarily in England, Wales and Northern Ireland. It is the corporate trustee of the Royal School for Deaf Children (Birmingham) and Coventry Society for the Blind. It is the sole member of Sense Scotland, Sense International and Sense4Enterprise Ltd, and holds 100% of the issued share capital of Helping Sense Limited.

Sense Scotland is registered in Scotland as a charity (charity number: SC022097) and a company limited by guarantee (company number :147570). It is governed by its own Memorandum and Articles of Association.

Sense International is a registered company limited by guarantee (company number: 03742986) and a registered charity (charity number: 1076497), governed by its own Memorandum and Articles of Association. It works on a global basis, raising the needs of deafblind people and working with partner organisations in India, Latin America, Eastern Europe and East Africa.

Helping Sense Limited is Sense’s trading company (company number: 2214430). It is governed by its own Memorandum and Articles of Association and its main activity is the sale of goods through Sense’s charity shops. The profits from its activities are donated to Sense.

Sense4Enterprise Ltd (company number: 08112973) a registered company limited by guarantee, was recently set up by Sense to enable us to take forward social enterprise activities.

The Royal School for Deaf Children (Birmingham) is a registered charity (charity number: 528908). The Charity Commission granted a linking order permitting its activities to be reported on within Sense’s report without the need to file its own separate annual report and financial statements. It is governed by its trust deed but does not operate in its own right.

Coventry Society for the Blind is a charity (charity number: 700656) and company governed by its Memorandum and Articles of Association. It is now a dormant company (company number: 2280756).

The Consolidated Annual Report and Financial StatementsThis is the consolidated annual report and financial statements for all the Sense organisations. Sense International and Sense Scotland publish their own annual report and financial statements which describe their activities and finances in more detail.

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SenseIn last year’s annual report we set out the three aims of our new strategy; Growing Stronger Together and said that we would report on them in this annual report. The aims are:

Aim 1 - Growing - We will help more deafblind people to be full and active members of society, by expanding our existing services so that more people are able to make use of them, and by developing creative, responsive and flexible services based on individual need.

Aim 2 - Stronger – we will improve the outcomes for those people using our services, improve the quality of Sense’s services, structures and systems, and position Sense for the challenges of the future.

Aim 3 – Together – we will expand Sense’s membership and increase the ways in which our members engage with us; develop new delivery partnerships with other organisations; and increase the public understanding of the needs of deafblind people. In the first year of our three–year strategy we have achieved the following things:

Growing• In 2013 we purchased land in Selly Oak, Birmingham where we plan to build a

new development called TouchBase. This project will integrate new activities for deafblind people, direct Sense service provision, community services and streamlined administration within a new flagship building. We will provide new accommodation for day services, art facilities, and children, delivering specialist support services to enable people with multi-sensory impairments across the West Midlands to live a full life. The new base will have the added value of improving organisational communication, community inclusion and understanding across disabled and non-disabled groups, ages and ethnicity, involving the wider community, local services and businesses.

• We commenced work on a major refurbishment of our Anne Wall Centre in Barnet which will be completed in the second half of 2014. We also completed extensions to give more capacity at two of our existing resource centres, Keech and Rothwell.

• We are undertaking three pioneering projects which focus on improving the experience of transition into adult life for deafblind/ multi-sensory impaired (MSI) young people with funding from Big Lottery Fund Wales; Department for Education; SFIA Educational Trusts and The City Bridge Trust. We are grateful for this funding which will have a significant and lasting impact for young people now and in the future.

FUTUREOUR PLANS

FOR THE

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• Because of our expertise in working with children and young people, we have been able to provide training and consultancy support to other organisations, and have increased our income from this by 54%.

• We also received a two-year grant from the Department of Health’s Innovation, Excellence and Strategic Development Fund, promoting awareness and early identification of the support needs of older people who are developing vision and hearing loss. The project includes:

– sharing Sense’s learning and effective practice of early recognition and needs assessment of dual sensory loss in older people;

– providing specific advice and information to key agencies (CQC, Local Authorities, Clinical Commissioning Groups etc.) to influence the options they consider for long-term age-related health and care and reduce misdiagnosis of other conditions such as dementia;

– promotion of Sense’s early recognition screening tool and training.

• We have written up our service models and developed new ones, such as for a befriending service and social prescribing. Working with GPs and community health workers we are supporting 40 older people on a social prescribing project in Rotherham, funded by Voluntary Action Rotherham and are hoping to replicate this in other areas. The project engages older people experiencing social isolation in a regular social group with pre-designed activities, focusing on improving wellbeing through, arts, sports or culture. The members are prescribed the activity by their GP.

• We have developed a national framework for Sense’s work in arts and wellbeing. During the year 703 people with multi-sensory impairments (MSI), some with complex and /or multiple disabilities, have benefitted from access to a range of activities. This has included:

– A variety of arts activities including three major visual art exhibitions, two dance performances, three theatre performances and six drumming and percussion groups.

– Working with a range of other organisations we expanded opportunities for people with MSI to access theatre, cinema, music, dance and enabled better access to ten museums and cultural providers.

– Supported 100 MSI artists who want to sell their artwork in schemes in Lincolnshire, Exeter and Birmingham.

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– Relocated and extended Sense’s stable facilities in Lincolnshire so that these can be used by more deafblind children and adults than was possible at the previous premises.

Stronger• Our Fundraising Division successfully raised funds last year from a range

of different audiences despite the challenging economic environment and continues to be focussed on growing net income. In order to achieve this, the Fundraising Division has been restructured to enable more collaborative cross team and cross organisational working and a new fundraising strategy is being implemented.

– Investment in direct marketing has ensured that this income stream continues to perform successfully and grow. We are also investing in other areas of fundraising such as corporate and major giving in order to diversify our portfolio and a new fundraising board of senior volunteers is being launched to help us achieve success in these areas.

– We are very grateful for the continued generosity of all of our supporters, without whom we would be unable to raise the critical funds needed to support our work with deafblind people.

• We have completed the restructuring of our Trading Division and have reviewed non-profitable elements of the business which has resulted in the closure of some shops and warehouses. We have put in place new initiatives on stock generation and improved the margins on both second hand and new goods. A complete review of the property portfolio has also been completed. We have also reviewed the structure of management and financial reporting in order to provide a sound platform for future decision making.

– The Trading Division is also being more closely integrated with the work of the charity. Trading staff are being given greater understanding and awareness of the issues associated with deafblindness and far more co-operative work is being undertaken with other parts of the organisation, especially the fundraising, volunteering, operations, and communication teams.

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• 94.5% of outcomes inspected in our CQC registered services in England were judged compliant, compared to a national average of around 90%. In Northern Ireland, our three services inspected by RQIA all achieved full compliance.

• We have developed a new Quality Framework for our services. This involves eight evaluation tools which will enable us to evidence the systems and processes in achieving compliance against regulatory standards and will drive improvements by sharing best practice.

• Our values are important to our practice and the new I Statements tool was piloted for self-assessment across all service types. 88% of them received a rating of good or excellent.

• We have completed our new training programme for Communicator Guides, and we have rolled out Exploring, Talking and Listening Hands training to all of our accommodation services.

• We introduced a new People Strategy, ran road shows explaining the new corporate strategy, developed the Sense Awards programme so that outstanding staff achievements are recognised four times a year, rather than annually, and introduced e-learning modules and a new induction course.

• The development of technology is of particular importance to people with sensory impairments, enabling communication, access to information and increasing independence. Sense received almost 180 enquiries about technology in the six months to March and continues to monitor the market place for new technologies ranging from specialist sensory technologies such as hearing devices and low vision aids, to everyday equipment such as accessible kettles or heating and lighting controls. We can then offer advice to our service users and membership. We also work collaboratively with manufacturers to ensure developments are suitable for those with sensory impairments for example; kitchen scales, devices to navigate environments and alerting people about audible warnings using smart phones.

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• We have been increasing the range and quality of our information for people with MSI.

– A pack for professionals on CHARGE syndrome was launched in November and had been downloaded over 8000 times by the end of March this year.

– The rights and benefits pages on our website continue to be renewed

– Our frontline advice staff responded to over 1,500 cases in six months.

– We continue to generate and share new knowledge. Five research projects produced final reports during the course of the year.

Together• We have developed a corporate volunteering strategy in order to provide

stronger support and reach more deafblind people and families and also in enabling them to support each other. We will be improving the quality and consistency of support offered to volunteers across the organisation.

• We have expanded our partnerships across a range of activities; with other third sector campaigning organisations on public policy work, with private sector companies to increase fundraising and with local authorities and other organisations to create new ways of delivering services.

• We have made good progress with profile and awareness-raising. Among other initiatives our Great Sense Pompom challenge generated a media reach of 206,000 and 42 pieces of media coverage. A broad range of people were involved in the challenge including service users, members, volunteers and shops. We received 6000 pompoms which were made into a large tapestry which was exhibited at 11 venues round the country, culminating in a week at Kings Cross Station in London.

• We have launched our Sense Ambassador scheme, with six inspirational deafblind people acting as ambassadors for the organisation.

Objectives for 2014-15Next year we will report on progress with the strategic aims during the second year of our strategy.

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Sense ScotlandAs set out last year, Sense Scotland has just completed the first year of a new strategic plan.

Sense Scotland’s Strategic Objectives for 2013 – 2016 are:• We will support service users and families to be active and involved.

• We will lead in the provision of high quality service provision and service development throughout Scotland and internationally.

• We will grow in order to provide more services to more people.

• We will be the employer of choice, recognised for our commitment to staff development and training.

• We will harness the views of those we serve and support them to organise and campaign.

• We will work and grow sustainably.

The charity works to a rolling three-year strategic plan. All stakeholders are involved in the development of the strategic plan and the Trustees approve both the three-year strategic plan and the annual operational plan.

Progress with Major Objectives for 2013/14We will support service users and families to be active and involved

• The Board of Sense Scotland has parent/carer representation and the Chair of Sense Scotland is the parent of a service user. We have continued to support parents and carers on the Board in their role as Board members by the provision of supporting material and advice.

• We have active parent/carer representation and involvement in the Quality Assurance Programme.

• We have developed a Family Database to ensure it is a powerful tool for supporting service users and their families as well as providing meaningful intelligence to inform development priorities.

• We have supported the Service User Consultation Group to review the role and impact on the organisation which will ensure they have a greater say in the future of the organisation in the coming years.

• We continue to take part in partnership initiatives such as Disability Agenda Scotland (DAS) in order to challenge and inform changes in public policy that impact our service users and their families.

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There are some areas of our 2013/14 Business Plan that have not been fully achieved, including providing training opportunities for families and the development of a national annual service user and families satisfaction survey. All outstanding actions from the Business Plan will be reviewed by the Leadership Team.

We will lead in the provision of high quality service provision and service development throughout Scotland and internationally

• We have appointed a Quality Assurance Manager and launched the Quality Assurance Programme after a review of the QA pilot.

• All audit reports are issued to the Audit and Risk Committee and the committee also ensures that all actions originating from these reports are completed to their satisfaction. The committee is also identifying trends within these reports which will support future strategic planning processes.

• Our IT strategy has delivered improved equipment in all services, roll-out of wi-fi and mobile and tablet technology. These steps have improved the efficiency and effectiveness of our senior and front line managers.

• We have supported and resourced managers and staff to work in partnership with service users and their family, to identify achievable, measurable outcomes and describe these in a newly developed individual outcome based support plan.

• With the support of the Scottish Government, our Partners in Communication (PIC) project has researched, developed and implemented a range of communication tools and approaches that will benefit those people we support and the wider community.

• We have also been working towards the Quality Scotland Recognised for Excellence award which we aim to achieve in 2014/15. The organisation recognises that improving quality in an ongoing action and we will continue to assess and review all of our practices to provide the best possible service to our service users, staff and other stakeholders.

We will grow in order to provide more services to more people

• We have taken steps to develop our TouchBase model in other areas of the country. It is acknowledged that this has not moved forward as quickly as we had wished but negotiations are now at the stage that we expect to commence two new developments within the 2014/15 financial year.

• During the year we were also successful in obtaining a grant of £9,500 from the Big Lottery Investing in Ideas Fund to allow a study to take place in relation to the development of an outdoor centre.

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• We have responded positively to the needs and demands of service users and families by developing a range of high quality group session activities, including arts and music, within our TouchBase Glasgow services.

• In response to Self-Directed Support (SDS) legislation we have introduced a Marketing and Communications group that has seen the further development of our website, marketing and information materials and increased social media tools. The changing environment for social care brought on by a combination of local authority financial restraints and the expansion of SDS is a challenge to the organisation. We will meet this challenge by providing a range of high quality services that are affordable to our users and funders and we will communicate that using a wide spectrum of marketing strategies. We will be the employer of choice, recognised for our commitment to staff development and training.

• We have restructured our operational staffing model with the introduction of a Supervisor role with a particular focus on staff supervision and practice development. This was supported with a provision of a Supervisors’ training programme.

• We continue to develop our Partnership Forum with support from Unite the trade union to improve the pay and benefits of all of our staff.

We will harness the views of those we serve and support them to organise and campaign

• We continue to have a strong presence of family members on our Board of Trustees.

• Our Advisory Services and Parent Enabling Project support families to advocate for services, benefits and funding to ensure the needs of their family member is met.

• We work with other organisations through our membership in Disability Agenda Scotland (DAS). Working closely with thousands of disabled children, young people and adults, families and carers involved with the member organisations, DAS aims to:

– Influence public policy. – Provide a forum for decision makers and influencers to obtain advice and

information. – Promote a better understanding of the diverse experiences, needs and aspirations

of disabled people.

• We ran The Bigger Picture Campaign which increased our social network presence and informed people of our valuable work.

• We launched a range of new marketing materials to support service users and their families with information and advice on self-directed support.

23


We will work and grow sustainably

• Wehavemadesignificantmovestoreducepaperusageincluding:

– On-line recruitment

– Electronic forms produced for many of our processes including health & safety, procurement, service user information etc

– On-line production of monthly management accounts

• We have developed the use of sharepoint sites to centralise files, meeting papers etc to prevent duplication.

• We have begun a process of tablet technology implementation to reduce the use of paper files.

Objectives for 2014-15Next year we will report on progress with the strategic aims during the second year of our strategy.

Sense InternationalRefine Sense International’s strategy through a review of the current programme portfolio, the fundraising strategy and support from ancillary departments

In the last year we have made progress with the following objectives:

Reviewing our current programme portfolio in line with emerging fundraising trends we have invested in in-country fundraising and towards the end of the year recruited in-country fundraisers. We also reviewed direct marketing investment and refined the expenditure targets. We have increased expenditure on fundraising events and held a very successful ball which increased our unrestricted income. We also worked with the Communications Department to develop and launch a new website.

Develop the breadth of our country programmes through enlarging the community based work in East Africa and the vocational work in Romania.

In East Africa we introduced the Community Based Education concept as a pilot at the deafblind units of three schools in Kenya, each of which is a hub for nine mainstream schools, and will be the resource centre for assessments and teacher training. In Uganda; we supported 20 deafblind children to attend lessons at the deafblind unit of Bwanda School for the Deaf. As part of the teaching, teachers made a home visit to each child, to monitor progress and also to mentor parents, enabling them to continuously support their children. The skills of the teachers were enhanced through a training scheme through which they received mentoring support from three tutors of Kyambogo University.

In Romania we established three vocational training units with the active support and provision of resources by nine local authorities. We fully equipped the centres, trained vocational teachers and with the support of experts from Sense, developed draft curricula for adoption next financial year.

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Use a range of techniques to improve the coherence of our policy and campaigning work internationally and within countries.

Through raising the profile of deafblindness in multiple forums, we have successfully advocated to ensure that the voices of people with complex disabilities are heard at a number of high level meetings up to and including the UN.

We have increased the emphasis on international campaigning to improve awareness about the importance of preventative rubella vaccination and the need for it to be included in national vaccination programmes.

We have also invested resources in the development of a joint programme with the World Health Organisation in East Africa to roll out an early intervention and rubella prevalence programme.

Continue to raise the profile of SI to deliver tangible outputs for our beneficiaries

One of the significant achievements this year in raising the profile of deafblindness in international development was that our Country Representative in Kenya gave evidence to the UK All Party Parliamentary Select Committee enquiry into Disability and International Development. Through this work SI was invited to be on the panel for the International Disability Rights Fund based in the United States but with a global remit to support Disabled People’s Organisations.

Increase successful in-country fundraising

We have held events in India, Peru and East Africa. The number of in-country fundraisers in India has increased to five and we have recruited a fundraiser in Romania.

Increase focus on operational capacity through examination of programme and financial processes to improve overall efficacy.

We have introduced a new financial management system in East Africa to give more timely reporting information and have drafted a new financial manual. We have also developed due diligence for partner review across the region. The monthly dashboard has also been developed to give clearer information for operational decisions and board scrutiny.

Some other major achievements last yearIn Kenya we developed and achieved national adoption of four curricula; pre-school, basic, prevocational and home-based education for use in all the 10 schools with deafblind units in Kenya. The teacher/pupil ratio improved to 1:2, demonstrating the government’s commitment to increase the number of teachers in the deafblind units.

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In Uganda we have established the first accredited teacher training programme on deafblindness at Kyambogo University, in partnership with Kentalis International. For the first time the country will be able to source locally trained teachers dedicated to deafblind children’s learning.

In Tanzania, we concluded the final year of a five year project establishing the last of ten deafblind units in the country. There are now 69 deafblind children receiving an education within deafblind units following a nationally developed curriculum.

In Romania we have screened over fifteen thousand babies to identify those with sensory impairments and expanded the services to a fifth district. There are now 73 children in the early intervention programme and cumulatively we have had over 130 babies or young infants pass through early intervention services in five districts.

In Peru we were successful in ensuring that a deafblind person was hired as a specialist on deafblindness within the National Council of People with Disabilities – CONADIS. Part of her new role is to manage training programmes with different government agencies and to ensure that deafblindness is included in their work.

In India, working in 21 states through 48 partner organisations, SI India has increased its reach to 56,847 persons with deafblindness including 586 persons with deafblindness in our direct services, 633 teachers, medical, para-medical staff, project management staff and SSA teachers have been trained. Two new early intervention centres were set-up, with a total of 2,545 (1,391 male, 1,154 female) new born children being screened through these six centres. From these, 200 children were found to be at-risk, of which 88 children were included in early intervention programme for sensory stimulation and to facilitate their development.

In Bangladesh the Parliament passed the Bangladesh Disability Law. The law recognises ‘Deafblindness’ as a separate category of disability; deafblindness was included in the national census and the government has also included deafblind people in its safety net and rehabilitation programmes. We continued to work with 16 partners in 15 districts of Bangladesh and supported 820 people with deafblindness and their families, who are benefiting from home and centre based educational support. This year the programme has also helped us to integrate 34 children into the mainstream education system. Health is one of the major concerns for deafblind children in the country, and we provided nutritional support to 33 deafblind children and their families this year.

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Objectives for 2014/151. Successfully pilot Community Based Education in nine regions across Kenya, Tanzania

and Uganda, embedding the new approach into government practices.2. Develop pilot early intervention services in at least three hospitals across Kenya and

Uganda. 3. Raise awareness about the need for the Rubella vaccine with governments and the

general public.4. Develop a pilot Inclusive Education project in partnership with at least one other NGO

with experience in Inclusive Education.5. Develop a project to establish a teacher training certificate course at Patandi Teacher

Training College in partnership with the Ministry of Education and with Perkins International and Kentalis International.

6. Build long term strategic partnerships with donors and increase income from in-country funding sources.

Sense GroupWorking in partnershipSense is involved in a number of key networks in the sector; the Special Education Consortium, Early Support Advisory Group, and partners in National Sensory Impairment Partnership, Communication Consortium. We also established the MSI Educators Network.

We are members of the Disability Partnership with Scope, the National Autistic Society and Mencap and of the Care and Support Alliance.

We work with the National Deaf Children’s Society (NDCS) and the National Sensory Impairment Partnership (NatSIP) discussing new technological products and other sector developments such as the Campaign on Lonliness.

Governance of Sense Scotland and Sense InternationalFor detailed information on the specific governance arrangements and processes for Sense Scotland and Sense International, please see their respective Annual Reports and Accounts.

Statement of Sense Council’s responsibilitiesThe Council (who are trustees and for the purposes of company law, also directors of Sense, The National Deafblind and Rubella Association) is responsible for preparing the Council’s Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

27


Company law 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable 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 UK Accounting Standards 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 charitable company will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time, the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

• there is no relevant audit information of which the charitable company’s auditor is unaware; and

• the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

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

28

Public BenefitCouncil has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives and in planning its future activities. In particular, Council has considered how planned activities will contribute to the aims and objectives it has set. The information given in relation to the objectives set last year gives clear examples of how our work brings public benefit through a wide range of activities.

Internal Financial ControlCouncil has overall responsibility for ensuring that the charity has appropriate systems of controls, financial and otherwise, in place. The systems of internal control are designed to provide reasonable assurance against material misstatement or loss. They include:

• A three year strategic plan and an annual budget approved by Council. A number of matters are specifically reserved for Council’s approval.

• Regular consideration by Council of financial results, variance from budgets, non-financial performance indicators and benchmarking reviews.

• The Finance Committee considers investment strategy and monitors investment performance.

• Crowe Clark Whitehill LLP have been appointed as our internal auditors. Their annual programme is agreed by Audit Committee and the outcomes of the audits are reported to the Committee with action plans.

• The development of policy documents covering all major strategic and operational activities. These are reviewed by the Executive Team with appropriate regularity and consultation.

Identification and management of risksCouncil has delegated day-to-day responsibility for the management of risks to the Chief Executive. The Audit & Risk Committee is responsible for overseeing the establishment and maintenance of good practice in this area and for reporting on it to Council at each of its regular meetings. In addition Council itself reviews the corporate risk register at each of its meetings.

A formal risk management process has been developed to assess business risks and implement risk management strategies. Management is responsible for the identification and assessment of risk and reporting on its work to the Audit & Risk Committee and the Finance Committee. Management is also responsible for developing risk mitigation strategies and controls, and implementing action to minimise or reduce risk to acceptable levels.

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Risk identification and assessment processes have been embedded within the normal operating activities of managers throughout Sense. The review process ensures that key risks are regularly reviewed, monitored and reported on. The following key potential risk areas are some of those to have featured on the Corporate Risk Register during 2013-14:

Risk: To build new resource centres: raising sufficient capital.Controls: Drawing up of the project plan including financing strategy.

Financial planning and tight controls in place.

Risk: Pension liability becomes unsustainable due to external changes.Controls: Pension status is continuously monitored.

Negotiations with the LPFA were successful in agreeing the withdrawal of “active” members, limiting future accrual of liability and agreeing instalments for coming years with an option to pay off the cessation value at a time suitable to Sense.

Risk: Increase in the number of voids. Controls: Referral system in place for all services and addressed in business plans.

Processes in place to manage voids.Corporate approach to personalisation.

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Sense GroupSense Council Members from April 1st 2013 to the present John Crabtree OBE ChairmanLiz Booth (Vice chair and Chair of the Nominations Committee)Nicholas Keegan (Treasurer and Chair of the Finance Committee)Ian Harley (Chair of the Audit & Risk Committee) Gini Bartlett MBE Jim McManus (co-opted from Sense Northern Ireland)Jane McNally (took one year’s leave of absence from March 2013 and resigned in March 2014)David PearsonDavid Reeves Roy Staines (re-elected December 2013)Duncan Tannahill (co-opted from Sense Scotland)Sue Turner Gillian Wood (resigned December 2013)Natalie Assad (co-opted September 2013, elected December 2013)Dr Justin Molloy (co-opted September 2013 elected December 2013)Desmond Lucy (co-opted December 2013)Simon Armstrong (co-opted July 2014)

Sense Scotland and Sense International have their own boards of Trustees:Sense Scotland Sense International Roy Cox (Chair) Sunil Sheth (chair)Neil Farquharson (vice-chair) Pankaj Shah (Treasurer)Douglas Smart (Treasurer) Denis TinsleyGerard Seenan (Deputy Treasurer) Sue TurnerDavid Newton Dr Subo ShanmuganathanDuncan Tannahill Leona ForsythIsobel Alan Verity StiffNorman Ritchie Paul FeeneyUsman Rehman Dean LumerGary SimpsonEileen Henighen

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Senior Staff at SenseGillian Morbey OBE Chief Executive (also Chief Executive of Sense International)Richard Kramer Deputy Chief ExecutivePeter Cheer Group Director OperationsKris Murali Group Director Finance & ResourcesToni Dumolo Director of Human ResourcesDavid Robinson Director of FinanceAlana Tubasei Director of FundraisingChris Miles Director of TradingLindsey Myers Director of Accommodation Services James Thornberry Director of Sense International

Senior Staff at Sense ScotlandAndrew Kerr Chief Executive of Sense Scotland Linda Annan Director of OperationsJohn O’Connor Director of Corporate AffairsEddie McConnell Director of External Affairs

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The situation faced by Sense is common across the charitable sector at present. We are seeing increased demands for the support and services we can offer, but tremendous pressure on our resources, hence, Sense has worked hard to continue to do more for less. Our innovative and collaborative approach across all of our diverse range of activities has allowed Sense to continue to grow our income, up from £80m in 2012/3 to £82m in 2013/4, but more importantly has allowed us to reach more people than ever.

Sense has a historic membership of the London Pension Fund Authority, a public sector provider of pensions and a traditional pension body for Local Authorities. Sense closed membership of the scheme to new members in 2003, so we are now down to just under 100 active members and a considerable number of pensioners and past employees with a deferred status (this means no longer an active member of the scheme, but not yet a pensioner). It is the surplus or deficit of this scheme that we show in our financial statements and explain in detail in note 9. The 2013/14 FRS17 pension fund valuation showed very significant movement and this continues to be a very volatile element in our financial statements, causing large scale movements year on year. This year the actuarial valuation moved by a negative £5m, following positive movements of in excess of £15m over the last four years. This movement causes the consolidated statement of financial activities to show a significant difference between incoming and outgoing resources.

We have been working hard to reduce the risk that this historic pension scheme brings to Sense and in 2014/5 asked all members to voluntarily leave the scheme and join the standard defined contribution scheme Sense offers to all new starters. These new contracts will take effect in November 2014 and it will leave Sense with no active members in the LPFA scheme. This means no new final salary liabilities will be incurred by Sense for active members. We will continue our discussions with the LPFA around agreeing a cessation value and leaving the scheme completely, or continuing to reduce the historic deficit through the savings we will make by no longer having active members.

We undertook a significant reorganisation of our shops and the Trading Directorate in 2013/14 and this helped us significantly reduce central costs. However, our shops remain under particular pressure and in common with the high street in general, we have continued to see a reduction in shoppers. Alongside this we have faced a reduction in donated goods, with Local Authority regulations, internet sales and the financial squeeze faced by most families, all having an impact. Whilst we maintained our income level, £11.8m in 2012/13 and £11.9m in 2013/14 this was achieved through more shops, so costs have been higher and our net return less than budget.

20/13/14FINANCIAL

REVIEW

33


Fundraising remains a challenge, but we invested in new direct marketing campaigns in both Sense and Sense Scotland and these regular donors remain a vital income stream for Sense. This investment drove up our Fundraising costs considerably in 2012/3 from £4.2m in the previous year to £5.9m. However, in the long term our returns will be considerably in advance of our investment and in addition to the financial benefit we will also have opened engagement with many hundreds of new supporters.

We have continued to be successful in using European and other statutory grant income to advance our work in Sense International and we continue to see the number of people reached grow each year. We have also been successful in a number of other statutory bids in Sense and Sense Scotland and this is allowing several new projects to be explored, developed and operated. In all, statutory grants received rose from £847k in 2012/13 to £1.1m in 2013/14.

In general, despite these challenges, 2013/14 was a success for the Sense Family; we are reaching more people than ever and have increased our engagement with our stakeholders in a number of ways.

ExpenditureExpenditure on our charitable activities in 2013/14 was £66m. This represented an increase of £3m on the previous year. Sense Scotland accounted for £1.5m of this expenditure growth with additional expenditure in Housing Support Projects and in the Policy, Development and Resources area. Most of the additional increase in expenditure is linked to Sense working with more adults, for which we were paid accordingly.

We spent £2.5m (£2.5m in 2013) working with children and families and £1.3m (£1.3m in 2013) working with older people. This shows the sustainability of our activities. The fact that with no increase in expenditure we still managed to work with 24% more children, reaching 196 more young people than the year before, shows that we are achieving our plan to do more for less.

Work on campaigning and raising awareness cost £1.4m (£1.3m in 2013), publicity costs were £661k (£667k in 2013) and we spent £481k (£477k in 2013) on quality improvements and staff development.

Governance costs of £56k were £4k less than last year.

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IncomeTotal income amounted to £81.8m, an increase of £1.8m on the previous year.

This year Sense had an increase in fees and allowances, paid by statutory authorities, which rose by 1.7% to £56m in total. This increase has been achieved at a time when significant pressure is being placed on our fee income as funding cuts take hold. However, Sense has repeatedly demonstrated that our services offer value for money and that in the long term we help reduce the cost to funders by helping people reach their potential and be as independent as they are able. We have added new services and reached more people than ever before and this has increased our income in total. At the same time we have worked in partnership with our funders to reduce costs and have agreed some fee reductions where appropriate, whilst maintaining the highest quality standards. All of this income is linked to agreed contracts and Sense provides services in line with our agreements with health authorities, Care Commissioning Groups, local authorities and individuals.

Total fundraised income reached £12.1m representing an increase of £800k on the previous year which bucks the general downturn. However, it should be recognised that much of this increase was led by our investment in new Direct Marketing campaigns during the year, which will achieve complete pay back in the next three years or so. Income from our shops reached £11.9m, the same as the previous year: however, this has only been possible by opening more shops and overall this has driven up our shop costs.

The Statement of Financial Activities, before we included the FRS17 deficit, resulted in a negative net movement in funds for the year of £0.6m. However, this is less than the net investment we made in new Direct Marketing programmes, so we will be paid back in full for this investment over the next few years, meaning that 2013/14 was financially a successful year for Sense. The historic LPFA pension scheme FRS17 valuation increased this negative movement by £5m resulting in an overall negative net movement in funds of £5.6m.

Throughout the year we have exercised strong control over our finances and the budgeting process ensured that expenditure was affordable and within our income.

ReservesThe policy for reserves is reviewed each year by Trustees.

The target level for reserves has been calculated by each member of the Sense Family to suit their individual needs and circumstances.

In each case they ensure that the target they set will be capable of:• providing sufficient working capital for budgeted operational commitments• funding responsive action in the event of a significant financial downturn • managing the relocation of the people who use our services in the event of closure of

the organisation.

35


Alongside this Trustees take account of any risks that might impact on the level of reserves required. They include:• time needed to implement operational response to any significant

reductions in income• dependence on and reliability of individual income streams• robustness of the internal reporting and response methods• potential for variation in cash flow forecasts

Sense Scotland set a target of 12 weeks operating costs as a desired level of reserves, which is reviewed annually, having taken into account the nature of the client group for which the charity is entrusted to provide care and support. As of 31 March 2014, the charitable company has managed to achieve a reserve level of 10.6 weeks working capital. Working Capital is calculated using the Net Current Assets (excluding Restricted and Designated Funds) divided by the average expenditure for one week.

Sense International Trustees have agreed the aim of having unrestricted reserves equivalent to six months’ expenditure and continue with this aim. They have set this target in order to ensure that reserves remain capable of providing sufficient working capital for budgeted operational commitments and funding responsive action in the event of a significant financial downturn. At present Sense International have achieved a reserve holding equivalent to three months expenditure.

Sense set a target of £16.8m, to cover the factors previously mentioned and to allow sufficient funds to embark on a significant capital investment programme. This capital investment programme will include new resource centres in Birmingham and Cymru, as well as redevelopment of the Ann Wall Centre in Barnet. On top of this we have plans to improve many of our services and to assist people to remain in their homes by making adaptations as necessary. As we have identified the costs of these developments we have undertaken to designate funds to cover them, so Sense seeks to meet its £16.8m reserve target through a combination of unrestricted current assets and designated funds linked to these schemes. As at the 31st March 2014 Sense had £8m set against our target.

Investment strategyInvestment aimsThe aims of non-cash investments are to achieve long term capital and income growth, to provide sufficient income to support our activities whilst still seeking real growth in capital to meet our future needs.

Cash will be invested to maximise return whilst meeting agreed risk appetite and future cash needs.

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Risk appetiteWe recognise that investments cannot be risk free if we are to achieve our stated investment aims but we have an appetite only for low risk investments.

Ethical investmentsSense wishes to avoid unethical investments that are in conflict with its charitable objectives.

EmployeesSense has successfully embedded new terms and conditions for its employees which were adopted in 2012/13 following a successful consultation exercise.

Employees are kept fully informed of all factors affecting the performance of the organisation and any other matters likely to be of concern to them as employees through written and face to face staff briefings, our intranet and newsletters. This includes notes on decisions and discussions of both the Executive Team and Council. Employees are encouraged to present their suggestions and views at regular one to one meetings with their line managers and through implementation of a grievance procedure and whistle blowing policy. Sense also has a Staff Forum, enabling representatives elected by staff, to comment on issues raised by senior managers and also to contribute new ideas and suggestions.

The development of our workforce through training and increased engagement will play an important part in our strategy for 2015.

Independent auditorsA resolution to reappoint PricewaterhouseCoopers LLP as auditors to the company will be proposed at the annual general meeting.

By order of Council and signed on its behalf

G Morbey OBESecretary23 September 2014

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Independent auditors’ report to the members of Sense, The National Deafblind and Rubella AssociationReport on the financial statementsOur opinionIn our opinion the financial statements, defined below:

give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2014 and of the group’s incoming resources and application of resources, including its income and expenditure and the group’s cash flows for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

This opinion is to be read in the context of what we say in the remainder of this report.

What we have auditedThe group financial statements and parent charitable company financial statements (the “financial statements”), which are prepared by Sense, The National Deafblind and Rubella Association, comprise:

the group and parent charitable company balance sheet as at 31 March 2014;

the group statement of financial activities and the group summary income and expenditure account for the year then ended;

the group cash flow statement for the year then ended;

the accounting policies; and

the notes to the financial statements, which include other explanatory information.

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).

REPORTINDEPENDENT

AUDITORS’

38

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.

What an audit of financial statements involvesWe conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of:

whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed;

the reasonableness of significant accounting estimates made by the trustees; and Independent auditors’ report to the members of Sense, The National Deafblind and

Rubella Association 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 other matter prescribed by the Companies Act 2006In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Other matters on which we are required to report by exception

Adequacy of accounting records and information and explanations receivedUnder the Companies Act 2006 we are required to report to you if, in our opinion:– we have not received all the information and explanations we require for our audit; or– adequate accounting records have not been kept by the parent charitable company, or

returns adequate for our audit have not been received from branches not visited by us; or

– the parent charitable company financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Trustees’ remunerationUnder the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of trustees’ remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.

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Entitlement to exemptionsWe have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the auditOur responsibilities and those of the trustees

As explained more fully in the Trustees’ Responsibilities Statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the charity’s members and trustees as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Anthony Blackwell (Senior Statutory Auditor)for and on behalf of PricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsLeeds23 September 2014

The maintenance and integrity of the Sense, The National Deafblind and Rubella Association. website is the responsibility of the trustees; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

40

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ritab

le a

ctiv

ities

:

W

ork

wit

h ad

ults

37,3

67,8

6466

0,94

974

7,82

78,

623

38,7

85,2

6337

,984

,399

W

ork

wit

h ch

ildre

n2,

139,

786

49,0

8133

1,14

8-

2,52

0,01

52,

450,

257

W

ork

with

old

er p

eopl

e1,

261,

461

17,7

1764

,041

-1,

343,

219

1,29

7,36

3

W

ork

in S

cotla

nd17

,217

,926

706,

870

14

1,67

4-

19,0

66,4

7017

,526

,180

In

tern

atio

nal w

ork

424,

247

53,1

841,

004,

742

-1,

482,

173

1,57

9,09

8

Ca

mpa

igns

and

aw

aren

ess

1,34

1,25

510

,128

21,2

97-

1,37

2,68

01,

281,

478

Pu

blic

ity62

5,07

734

,243

1,79

3-

661,

113

666,

596

Q

ualit

y an

d st

aff d

evel

opm

ent

476,

702

3,11

21,

153

-48

0,96

747

7,22

6

Gov

erna

nce

cost

s 4

56,0

04-

--

56,0

0460

,457

60,9

10,3

221,

535,

284

3,31

3,67

58,

623

65,7

67,9

0463

,323

,054

Tota

l res

ourc

es e

xpen

ded

76,9

86,5

182,

273,

883

3,34

8,78

08,

623

82,6

17,8

0478

,106

,788

Net

inco

min

g/(o

utgo

ing)

res

ourc

es

befo

re t

rans

fers

579,

495

(

1,57

7,62

8)19

6,69

4(8

,623

)(8

10,0

62)

1,90

0,23

2

Tra

nsfe

rs

18(2

,006

,136

)1,

701,

418

304,

718

--

-

Net

(out

goin

g)/in

com

ing

reso

urce

s be

fore

ot

her r

ecog

nise

d ga

ins

and

loss

es(1

,426

,641

)12

3,79

050

1,41

2(8

,623

)(8

10,0

62)

1,90

0,23

2

Oth

er r

ecog

nise

d ga

ins/

(los

ses)

Oth

er re

cogn

ised

gai

ns/(

loss

es)

523

3,18

7-

--

233,

187

504,

966

Act

uaria

l (lo

sses

)/ga

ins

on d

efine

d be

nefit

pe

nsio

n sc

hem

es9

(5,0

14,0

00)

--

(5,0

14,0

00)

1,74

7,00

Net

mov

emen

t in

fun

ds6

(6,2

07,4

54)

123,

790

501,

412

(8,6

23)

(5,5

90,8

75)

4,15

2,19

8

Fund

bal

ance

s br

ough

t fo

rwar

d at

1 A

pril

20,6

37,7

9318

,354

,863

6,58

5,56

043

8,77

046

,016

,986

41,8

64,7

88

Fund

bal

ance

s ca

rrie

d fo

rwar

d at

31

Mar

ch18

,19

14,4

30,3

3918

,478

,653

7,08

6,97

243

0,14

740

,426

,111

46,0

16,9

86

42

Registered no. 1825301

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2014 Note 31 March 2014 31 March 2013 £ £

Fixed assets

Tangible assets 11 23,075,273 21,449,401

Investments 12 5,007,572 4,811,527

Total fixed assets 28,082,845 26,260,928

Current assets

Stock and work in progress 94,717 242,249

Debtors 13 8,019,220 7,449,589

Investments 14 4,000,000 8,000,000

Cash at bank and in hand 10,481,751 9,760,119

Total current assets 22,595,688 25,451,957

Creditors (amounts falling due within one year) 15 (5,229,132) (4,959,816)

Net current assets 17,366,556 20,492,141

Total assets less current liabilities 45,449,401 46,753,069

Creditors (amounts falling due after more than one year) 16 (652,290) (712,083)

Net assets excluding pension liability 44,797,111 46,040,986

Defined benefit pension scheme liability 9 (4,371,000) (24,000)

Net assets including pension liability 40,426,111 46,016,986

The funds of the charityRestricted income funds 18,19 7,086,972 6,585,560

Endowment fund 18,19 430,147 438,770

Unrestricted income funds

General fund (including pension reserve of 18,19 £4,371,000 adverse (2013: £24,000 adverse)) 14,430,339 20,637,793

Designated funds 18,19 18,478,653 18,354,863

Total unrestricted income funds 32,908,992 38,992,656

Total charity funds and reserves 40,426,111 46,016,986

The notes on pages 49 to 76 form part of these financial statements.

Nick Keegan Treasurer Approved by Council on the 23 September 2014

43


Registered no. 1825301

COMPANY BALANCE SHEET AS AT 31 MARCH 2014 Note 31 March 2014 31 March 2013 £ £

Fixed assets

Tangible assets 11 16,539,912 14,783,166

Investments 12 5,035,890 4,839,845

Total fixed assets 21,575,802 19,623,011

Current assets

Stocks of goods and work in progress 94,717 242,249

Debtors 13 5,309,866 5,428,419

Investments 14 4,000,000 8,000,000

Cash at bank and in hand 4,233,841 2,567,803

Total current assets 13,638,424 16,238,471

Creditors (amounts falling due within one year) 15 (4,269,894) (3,985,432)

Net current assets 9,368,530 12,253,039

Total assets less current liabilities 30,944,332 31,876,050

Creditors (amounts falling due after more than one year) 16 (18,000) (27,000)

Net assets excluding pension liability 30,926,332 31,849,050

Defined benefit pension scheme liability 9 (4,371,000) (24,000)

Net assets including pension liability 26,555,332 31,825,050

The funds of the charity

Restricted income funds 18,19 4,040,514 3,689,050

Endowment fund 18,19 430,147 438,770

Unrestricted income funds

General fund (including pension reserve of £4,371,000 adverse (2013: £24,000 adverse)) 18,19 10,437,895 16,678,176

Designated funds 18,19 11,646,776 11,019,054

Total charity funds 26,555,332 31,825,050


Nick Keegan Treasurer Approved by Council on the 23 September 2014

44

CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2014

2014 2013 £ £

Income of continuing operations 81,493,941 79,477,801

Total expenditure of continuing operations (82,776,355) (78,233,946)

Operating (surplus)/deficit (1,282,414) 1,243,855

Income from fixed asset investments 177,067 164,699

Gain on disposal of tangible fixed assets - 27,385

Interest receivable and similar income 136,734 364,520

Interest payable and similar charges (42,449) (45,227)

Other finance income 201,000 145,000

Net (expense)/ income for the year (810,062) 1,900,232

The consolidated summary income and expenditure account is presented in order to ensure compliance with the Companies Act 2006.

A detailed analysis of income and expenditure by source is provided in the consolidated statement of financial activities. All incoming resources and resources expended are derived from continuing activities.

The consolidated summary income and expenditure account is derived from the statement of financial activities which, together with the notes to the financial statements on pages 49 to 76 provides full information on the movements during the year on all the Association’s funds.


45


CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2014

2014 2013 Notes £ £

Net cash inflow from operating activities 23 1,481 907,757

Returns on investment and servicing of finance

Investment income received 313,801 529,219

Interest paid (42,449) (45,227)

271,352 483,992

Capital expenditure

Sale/(purchase) of investments 55 (5,229)

Purchase of tangible fixed assets (3,529,727) (2,604,311)

Sale of tangible fixed assets 35,317 33,436

(3,494,355) (2,576,104)

Financing

Bank and other loans repaid (56,845) (54,067)

Transfer from current asset investments 4,000,000 -

3,943,155 (54,067)

Increase in cash 24,25 721,633 1,238,422


46

Accounting policiesThe financial statements have been prepared under the historical cost convention as modified by the revaluation of investments at market value and in accordance with applicable UK accounting standards, the Charities Act 2011, the Companies Act 2006 and the Statement of Recommended Practice (SORP 2005), “Accounting and Reporting by Charities”.

The figures contained in the consolidated financial statements relate to all activities both national and international and include those of the charity and its wholly owned charitable subsidiaries: The Royal School for Deaf Children (Birmingham), Sense Scotland, Sense International, Coventry Society for the Blind together with the results of Helping Sense Limited, its wholly owned non-charitable subsidiary. The undertakings are consolidated, excluding all inter-company transactions and balances, from the date of acquisition or formation, on a line by line basis.

Incoming resources and recognitionAll incoming resources are included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Fees and allowances receivable for residential care and similar services are accounted for in the period in which the service is provided. Shop income represents goods supplied to customers at invoiced amounts and is recognised when the economic risks and rewards are transferred to the third party. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. Grants are recognised when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Grants received in advance with donor imposed conditions that specify the time period in which the expenditure of resources can take place are accounted for as deferred income and recognised as a liability.

Fundraising incomeVoluntary income is accounted for when received. Non-cash donations, other than goods donated for sale through our shops, are stated at an estimate of their value to the Charity.

Resources expendedAll expenditure, including any irrecoverable VAT, is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. The cost of generating funds for voluntary income is the cost of organising fund raising events and activities and the cost of operating the charity’s shops. The costs of charitable activities include all expenditure directly relating to the objects of the charity. Support costs have been apportioned to the relevant charitable activity on the basis of salary costs incurred.

Governance costsGovernance costs include internal and external audit, strategic costs and Trustees’ expenses.

47


Tangible fixed assets and depreciationTangible fixed assets are stated at historic purchase cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

Using the following methods, depreciation is calculated so as to write off the cost of tangible fixed assets over their estimated useful economic lives at the following annual rates:

Accounting policiesIn equal annual instalments:Freehold buildings - 2%Short leasehold properties and - over the remaining life of the leaselong leasehold improvementsFurniture, fixtures and fittings - 12.5%-25%Motor vehicles - 25% Freehold land is not depreciated.Individual fixed assets costing £500 or more are capitalised at cost.

LeasesAssets acquired under finance leases are included under tangible fixed assets in the balance sheet and depreciated as indicated above. The related liability for the capital element is included in creditors and the interest element, which is calculated on the basis of the amount of borrowing outstanding, is charged to the statement of financial activities in the period to which it relates.

Operating lease rentals are charged to the statement of financial activities in equal amounts over the term of the lease.

StocksStocks are stated at the lower of cost and net realisable value and consist of collection bags for donated goods and new goods bought for resale, cost is determined on a first-in, first-out basis.

Recognition of LiabilitiesLiabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.

Pension costsPension costs are accounted for in accordance with FRS17 in respect of the London Pension Funds Authority Superannuation Scheme, a defined benefit pension scheme. As a result the regular service cost of providing retirement benefits to employees, the full cost or gain of providing amendments to benefits in respect of past service, income representing the expected return on assets of the fund and a cost representing the interest on the liabilities are charged to the statement of financial activities in the year.

48

Differences between actual and expected returns on assets during the year, together with differences arising from changes in assumptions underlying the present value of scheme liabilities and experience gains and losses arising on scheme liabilities are also recognised in the statement of financial activities.

The difference between the market value of assets and the present value of liabilities is shown as a net liability on the balance sheet.

The group also operates a defined contribution scheme for all other staff. Contributions are charged to the statement of financial activities in the period in which they are payable. Please see the Financial Review for full details about Sense current activity to reduce pension risks.

Accounting policiesFixed assets – securitiesThe quoted securities are valued at market value based on the Stock Exchange Daily Official list or similar recognised market value. Realised and unrealised gains and losses on sale or revaluation of investments are taken to the statement of financial activities in the period in which they arise.

Fixed assets – subsidiary undertakings Investments in subsidiary undertakings are stated at cost, but are written down to their realisable value if it is considered that there has been a permanent diminution in their value.

Fund AccountingGeneral funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes.

Restricted funds are funds which are to be used in accordance with specific instructions imposed by the donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund.

Endowment funds represent those assets which must be held permanently by the charity, principally properties. Any capital gains or losses arising form part of the fund. Depreciation of the properties is charged against the fund.

Investment income and gains are allocated to the appropriate fund.

49


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 20141 Grants receivable

Sense – Statutory Grants receivable 2014 2013 £ £

DFE Grant 130,117 -

Carmarthenshire 8,000 8,000

Powys Supporting People 12,989 12,988

Innovation fund 2,326 -

Suffolk Supporting People Grants (2,700) 49,500

Education Funding Agency 4,608 -

LAAW Aiming High Cambridgeshire CC 14,500 18,500

LAAW Aiming High Cambridgeshire CC - 5,762

Norfolk County Council SA Funds 49,951 55,113

Northern Ireland Housing Executive 23,524 26,138

Western Health and Social Care Trust 20,420 21,553

Newtown Abbey Surestart 65,443 63,452

Skills for Care 33,910 41,990

Cornwall County Council - GOT Project 60,000 49,528

South Gloucestershire Children’s Services Grant 2,929 2,929

NVQ Funding 1,800 -

PCP Training 2,074 -

SIFA Educational trust 7,033 -

Scotland – Statutory Grants Receivable Scottish Government (Malawi Project) 111,661 87,907

Scottish Local Authorities and Health Boards (towards services) 71,301 7,539

Scottish Executive (Children, Young People & Social Care Group Unified Vol. Sector Fund) - 66,785

Tayside NHS 10,700 10,700

NHS Greater Glasgow (Innovation projects) 160,922 160,923

Glasgow City Council 4,149 3,231

Scottish Government (VSDF Award) 29,565 -

Scottish Government (Section 10B) 10,000 -

Scottish Government (Path for All) 5,000 -

Scottish Government (Equality Fund) 92,800 92,800

Scottish Government (Shared fund for better breaks) 34,421 -

Scottish Government (Bangladesh) 26,047 -

Scottish Government (Strategic Partnerships) 67,000 -

Scottish Government (Third Sector Intervention) 56,244 -

Forestry Commission - 9,244

Scottish Government (Breaks) - 51,391

Other 8,446 1,408

Total Statutory Grants Receivable 1,125,180 847,381

50

2014 2013 £ £

Sense – Charitable Grants ReceivableNorthern Ireland DHSS (towards Services in Northern Ireland - Core Grant) 27,124 31,052

Welsh National Assembly (towards Organisational Development - Core Grant) 107,250 107,250

Short Breaks 13,003 -

A & C Missionfish - 3,250

Grundtvig 3,785 848

Innovation, Excellence & Strategic Development Fund 50,657 -

Mencap 42,500 -

Big Lottery Fund Cymru 37,426 -

City Bridge Trust 10,585 -

Sense Scotland - Charitable Grants Receivable Big Lottery Fund (One giant leap) 54,567 57,914

Big Lottery Fund (Reaching out) - 41,063

Big Lottery Fund (Arts) 11,495 -

Big Lottery Fund (Award for All) 9,100 -

Creative Scotland (Walk Group Project) - 20,100

Creative Scotland (Year of Natural Scotland) 18,750 -

Path to Health - 1,750

Creative Scotland (Music) 5,795 17,384

InternationalDepartment for International Development (Developing a sustainable infrastructure for the inclusion of deafblind people in Bangladesh) 12,961 73,611

European Commission EuropeAid Co-Operation Office (Developing model services and a sustainable infrastructure for deafblind people in Peru) - 128,785

European Commission EuropeAid Co-Operation Office (Promoting access to education for deafblind and multi-sensory impaired children in Tanzania) 21,554 13,766

Big Lottery Fund (Promoting the social inclusion of deafblind people in Latin America) - 14,160

European Commission EuropeAid Co-Operation Office (Promoting access to education for deafblind and multi-sensory impaired children in East Africa) - 218,050

State of Jersey Overseas Aid Committee (work in East Africa) - 17,033

State of Jersey Overseas Aid Committee (work in Peru) - 18,062

European Commission Europe Aid Co-operation Office (promoting and protecting the rights of deafblind people in India) 37,655 23,848

Guernsey Overseas Aid Committee (work in Tanzania) - 14,849

Big Lottery Fund Peru 14,563 -

Department to International Development (work In India) 168,775 132,935

Scottish Government (Improving education and health for deafblind people in Bangladesh) 22,207 -

States of Jersey Overseas Aid Committee (Vocational skills for independence for deafblind people in Bangladesh) 53,030 -

51


2014 2013 £ £

2 Investment income 2014 2013 £ £

Bank interest 136,734 364,520

Dividends 177,067 164,699

313,801 529,219

3 Other income

Other income is mainly derived from rental of accommodation, training and consultancy provided to other organisations and charities mainly concerned with sensory impairment.

4 Total resources expended Direct costs Support costs 2014 2013 £ £ £ £

Fundraising 5,698,760 195,949 5,894,709 4,189,736

Trading 10,818,341 136,850 10,955,191 10,593,998

Work with adults 34,366,885 4,418,378 38,785,263 37,984,399

Work with children 2,235,246 284,769 2,520,015 2,450,257

Work with older people 1,191,889 151,330 1,343,219 1,297,363

Campaigning and awareness raising 1,228,583 144,097 1,372,680 1,281,478

Publicity 590,785 70,328 661,113 666,596

Quality and staff development 436,653 44,314 480,967 477,226

Work in Scotland 17,652,782 1,413,688 19,066,470 17,526,180

International work 1,337,579 144,594 1,482,173 1,579,098

Governance 56,004 - 56,004 60,457

75,613,507 7,004,297 82,617,804 78,106,788

States of Jersey Overseas Aid Committee (Improving basic health and effective education for deafblind people in Bangladesh) 52,986 -

Big Lottery Fund (improving education for deafblind people in East Africa) 8,833 -

Others 12,126 2,477

Total Charitable Grants Receivable 796,727 938,187

All grants given for a specific purpose have been expended entirely on that purpose.

52

Analysis of support costs apportioned

Facilities £

Management £

Human Resources

£

Finance and IT

£Communications

£

2014

£

2013

£

Fundraising 16,752 14,870 62,975 71,614 29,738 195,949 177,620

Trading - 37,495 74,095 25,260 - 136,850 126,016

Work with adults

376,043 333,806 1,413,665 1,627,292 667,572 4,418,378 4,762,914

Work with children

24,345 21,610 91,520 104,076 43,218 284,769 305,429

Work with older people

12,937 11,484 48,635 55,307 22,967 151,330 161,605

Campaigning and awareness raising

12,319 10,935 46,310 52,664 21,869 144,097 138,252

Publicity 6,012 5,337 22,602 25,703 10,674 70,328 66,179

Quality and staff development

3,788 3,363 14,242 16,196 6,725 44,314 47,459

Work in Scotland

- 636,781 347,905 429,002 - 1,413,688 1,309,597

International work

- 144,594 - - - 144,594 435,993

452,196 1,220,275 2,121,949 2,407,114 802,763 7,004,297 7,531,064

Support costs have been apportioned on the basis of salary costs.

Analysis of governance costs

2014 2013 £ £

Internal audit 7,148 6,940

External audit fees 42,200 41,300

Strategic management costs (292) 2,715

Trustees’ expenses 6,948 9,502

56,004 60,457

53


5 Gains/(losses) on tangible fixed assets and investments

2014 2013 £ £

Incoming resources from charitable activities

Net gain on sale of tangible fixed assets - 27,385

Gains and losses on revaluation and disposal of fixed assets

Net loss on sale of tangible fixed assets (219) -

Unrealised gain on revaluation of listed investments 233,403 505,380

Realised gain/(loss) on sale of listed investments 3 (414)

233,187 504,966

6 Net movement in funds

The net movement in funds is stated after crediting:

2014 2013 £ £

Auditors’ remuneration – audit services 42,200 41,300

Depreciation – owned assets 1,868,320 1,761,378

Operating lease rentals 3,222,510 3,169,479

Interest payable on bank loans 42,449 45,227

Other finance income - pension scheme (201,000) (145,000)

54

7 Employees’ remuneration

In order to achieve our charitable objectives we need to attract and retain people with the right skills and experience. Sense is a complex organisation with circa £80 million annual turnover. Sense achieves its mission both in the UK and internationally across a wide range of services and all age groups. Salaries for the CEO, Deputy Chief Executive and two Group Directors are set and reviewed by Sense’s Remuneration Committee, a sub-committee of our board of trustees. This committee includes individuals with significant pay expertise and knowledge. The Chief Executive of Sense Scotland and the Senior Management Team also have their pay set and reviewed by a Remuneration Committee, which is again a sub-group of the Sense Scotland Board of Trustees.

All other staff salaries are set by senior management, with our in-house HR Department using externally accredited methods to measure the responsibility of each role and ensure that pay levels are correct. Most positions within Sense are part of a broad salary band, which ensures that all staff are paid fairly and that everyone receives similar pay for doing the same duties. Salary bands are openly stated in job adverts.

Our approach to pay

Sense is committed to providing the highest quality services in all the diverse areas which we cover. This commitment is as true in our OFSTED registered college as it is in our varied accommodation services, arts and wellbeing services, and in policy, information and training. To achieve this we need to recruit high-calibre people who can manage complex finance, budgets and business planning as well as understanding the voluntary sector and the areas of disability that we cover.

We also believe in rewarding staff fairly for the jobs that they do and fostering a positive working environment, and we believe our salaries and our terms and conditions reflect this.

People are employed by Sense on the basis of the specific skills that they bring to their particular role. To ensure Sense runs successfully, a large range of skills and disciplines are required, and we need to pay appropriately to ensure that we can recruit people with the right skills, drive and commitment. We also need to retain people in a competitive market where, at least in part thanks to the outstanding training and development we provide, their skills are readily transferable to other organisations both in the voluntary and private sectors. In order to achieve our objectives economically we try to retain good staff developing them and benefiting from their growing knowledge. This is in preference to the disruption and expense of recruitment, especially as many staff have detailed knowledge that is unique to them in the organisation and could not be quickly or easily replaced. Our staff pay ranges are set with this in mind.

Senior Management Pay

Sense’s unique range of services, covering the breadth of the UK, as well as East Africa, the Indian Sub-Continent and parts of South America and Europe, and encompassing activities from education to campaigning, and from hands on care provision to cutting edge research, means that the Chief Executive and other members of the Executive and Senior Management Teams need a breadth and depth of expertise, requiring us to recruit from the best senior manager talent in the sector. All senior managers have large numbers of staff working to them, and have responsibility for varied functions and large budgets over wide geographical areas. They are also responsible for our vulnerable service users. They need to be able to command the respect of colleagues, members and commissioners and take personal responsibility for the success of their area and for the future of the Charity. We are also very aware of the need to keep salary costs under control

55


Benchmarking

The Sense HR Team use externally accredited methods to benchmark salaries both internally and externally. While we take these into account we struggle to meet the same terms and conditions as other sectors. This is true with respect to holidays and salaries for our teaching staff for example, compared to the public sector, and our most senior staff, when compared to the private sector.

In general Sense aims to pay at a level that attracts staff, and we do expect staff to be committed and to “go the extra mile” for our service users. This means that our remuneration does not usually match what staff would receive in a Local Authority or the NHS. When benchmarking against other charities we take into account the expertise and specialist skills our staff need, and consider the moral requirement to pay staff a living wage. This means we aim to be middle quartile of benchmarked charity pay where possible.

Inflationary Pay awards: Annual pay awards are determined by market conditions and the organisation’s ability to pay. Lack of increases in a range of statutory funding has reduced our ability to award increases.

Year Sense Pay increase Scotland Pay increase

2009/10 0% 0%

2010/11 2% 0%

2011/12 0% 3%

2012/13 0% 0%

2013/14 0% 0%

Annual pay awards are discussed by the Sense Trustees at Finance Committee and agreed by the Council.

2014 2013 £ £

Wages and salaries 50,535,836 48,489,660

Social security costs 3,668,897 3,651,311

Other pension costs 1,992,780 1,817,989

Agency labour 1,346,967 1,118,619

57,544,480 55,077,579

The average number of persons employed by the charity was 3,287 (2013: 3,223).

56

The number of senior staff, in the Sense Group, whose total emoluments for the year (including taxable benefits in kind but not employer pension costs) exceeded £60,000 was:

Employees earning over £60,000 in the entire Sense Group were as follows 2014 2013

£60,000 - £70,000 1 3

£70,000 - £80,000 3 7

£80,000 - £90,000 2 1

£90,000 - £100,000 1 1

£100,000 - £110,000 1 -

£140,000 - £150,000 1 1

Pension Contributions for higher 2014 2014 2013 2013 paid employees were as follows £ Staff £ Staff

Defined benefit schemes 28,133 2 40,756 3

Money purchase schemes 31,027 6 48,291 8

Equality and Diversity note

Sense is committed to providing services which embrace diversity and promote equality of opportunity. We recognise, celebrate and promote the positive contributions that are made by people with sensory impairments and other disabilities, in shaping the support they receive and the direction of our organisation.

We are also committed to equality and valuing diversity within our workforce and with the volunteers who give their time to us. We expect them to understand and accept their personal responsibility to recognise and value differences and the unique contributions that people make to the way we deliver our services.

Our goal is to ensure that these commitments are embedded in our day-to-day working practices, policies and relationships with our service users, colleagues and the partners and communities with whom we work.

We will not tolerate discrimination on grounds of gender, gender identity, marital status, civil partnerships, sexual orientation, race, colour, nationality, religion, age, disability, HIV positivity, working pattern, caring responsibilities, trade union activity or political beliefs. Neither will we tolerate direct or indirect behaviours that are intended to bully, harass, isolate or victimise for reasons connected to individual differences.

No-one will receive less favourable treatment and everyone will be given the opportunity to grow and flourish.

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Employee involvement

Sense systematically provides employees with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests. This includes carrying out employee opinion surveys. Employee involvement in the group is encouraged, as achieving a common awareness on the part of all employees of the financial and economic factors affecting the group plays a major role in maintaining our success. Sense encourages the involvement of employees by means of Staff Forums.

8 Remuneration of members of council

As required by the Charities Act 2011, members of Council received no remuneration. Members of Council received £6,948 (2012: £9,502) in respect of reimbursement of expenses incurred.

9 Pensions

The Charity participates in the London Pension Funds Authority Superannuation Scheme (LPFA) providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the participating employers, being mainly invested in equity investments and Government Securities. The most recent triennial valuation was as at 31 March 2014. For the year to 31 March 2014 employer contributions to the pension scheme were at the rate of 17.9% of pensionable salaries.

Financial assumptions

The financial assumptions used to calculate the Scheme liabilities under FRS17 were as follows:

At 31 March 2014 At 31 March 2013 % pa % pa

Rate of inflation – RPI 3.6 3.4

Rate of inflation – CPI 2.8 2.6

Rate of increase in salaries 2.0 2.0

Rate of increase for pensions in payment 2.8 2.6

Discount rate 5.0 5.0

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The assumed life expectations from age 65 were as follows:

2014 2013 Years Years

Retiring today

- Men 21.5 21.5

- Women 24.2 24.2

Retiring in 20 years

- Men 23.5 23.5

- Women 26.2 26.2

Please see the Financial Review for more details on Sense’s actions to reduce pension risk.

Scheme assets and expected rate of return

The assets in respect of the membership of Sense and the expected rates of return were:

Long-term Long-term return return expected at Value at expected at Value at 31 March 31 March 31 March 31 March 2014 2014 2013 2013 % £’000 % £’000

Equities 6.9 17,467 6.0 23,255

LDI/Cashflow matching 3.6 1,977 - -

Target return funds 6.3 9,887 4.6 3,186

Infrastructure 6.5 1,318 - -

Alternative assets - - 5.0 4,778

Commodities 6.3 330 - -

Property 5.7 989 - -

Other bonds - - -

Cash 3.4 989 0.5 637

6.4 32,957 5.6 31,856

The equity investments and bonds which are held in plan assets are quoted and are valued at the current bid price.

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The following amounts at 31 March 2014 were measured in accordance with the requirements of FRS 17:

2014 2013 £’000 £’000

Total market value of assets 32,957 31,856

Present value of Scheme liabilities (37,328) (31,880)

Net pension liability (4,371) (24)

Reconciliation of present value of scheme liabilities

2014 2013 £’000 £’000

1 April 2013 31,880 30,025

Current service cost 390 429

Curtailments 12 -

Interest cost 1,576 1,496

Benefits paid (1,295) (823)

Contributions by members 170 189

Actuarial loss 4,595 564

31 March 2014 37,328 31,880

The following table sets out the impact of a change in the discount rates on the Total Obligation and Projected Service Cost along with a +/- 1 year age rating adjustment to the mortality assumption.

Sensitivity analysis of scheme liabilities

£’000 £’000 £’000

Adjustment to discount rate +0.1% 0% -0.1%

Present value of total obligation 36,661 37,328 38,008

Projected service cost 453 462 472

Adjustment to mortality age rating assumption +1 year None -1 year

Present value of total obligation 36,104 37,328 38,552

Projected service cost 448 462 477

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Reconciliation of fair value of scheme assets 2014 2013 £’000 £’000

1 April 2013 31,856 27,624

Expected return on scheme assets 1,777 1,641

Contributions by members 170 189

Contributions by the employer 868 914

Actuarial (loss)/ gain (419) 2,311

Benefits paid (1,295) (823)

31 March 2014 32,957 31,856

The following components of the pensions charge have been recognised in the statement of financial activities in the year to 31 March 2014:

2014 2013 £’000 £’000

Amounts charged to the statement of financial activities:

Current service cost 390 429

Curtailment and Settlements 12 -

402 429

Other finance cost/(income):

Interest cost 1,576 1,496

Expected return on assets (1,777) (1,641)

Net credit to other finance cost/(income) (201) (145)

Total statement of financial activities charge 201 284

Actuarial (loss)/gain recognised:

Actual return less expected return on pension scheme assets (690) 2,311

Experience loss on pension scheme liabilities (3,327) (11)

Gain from the change in pension increase policy - -

Change in financial assumptions underlying the present value of the scheme liabilities (997) (553)

Total actuarial (loss)/gain recognised (5,014) 1,747

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History of experience gains and losses

2014 2013 2012 2011 2010

Defined benefit obligation (£’000) (37,328) (31,880) (30,025) (33,432) (40,180)

Plan assets (£’000) 32,957 31,856 27,624 26,939 24,806

Deficit (£’000) (4,371) (24) (2,401) (6,493) (15,374)

(Loss)/gain on scheme assets:

Amount (£’000) (419) 2,311 (1,562) (76) 4,301

% of Scheme assets at end of year (1.3%) 7.3% -5.7% -0.3% 17.3%

Experience (loss)/gain on scheme liabilities:

Amount (£’000) (3,599) (11) 4,509 2,345 10

% of Scheme liabilities at end of year (9.6%) 0.0% 15.0% 7.0% 0%

Total actuarial (loss)/ gain recognised:

Amount (£’000) (5,014) 1,747 3,740 9,652 10,206

% of Scheme liabilities at end of year 13.4% 5.5% 12.5% 28.9% 25.4%

The contributions payable by Sense (the Company) to the LPFA are accounted for as if the scheme were a defined contribution scheme, as Sense (the Company) is unable to identify its share of the underlying assets and liabilities in the scheme.

In addition, Sense has 15 staff members in the Department of Education and Science Teachers’ Pension Scheme (TPS). The TPS is a multi-employer pension scheme and the Company is unable to identify its share of the underlying (notional) assets and liabilities of the scheme; accordingly, the Company has also accounted for the contributions to this scheme as if it was a defined contribution scheme.

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10 Company Statement of Financial Activities

As permitted by section 408 of the Companies Act 2006, and by paragraph 397 of the Statement of Recommended Practice 2005, the Company’s statement of financial activities has not been included within these financial statements. The Company’s gross income for the year was £56,754,312 (2013 £55,576,350) and total net resources expended for the year were (£488,905) (2013: a surplus of £458,754).

The Company made an unrealised gain on investments of £233,406 (2013: £504,966), recognised a defined benefit pension scheme deficit of £24,000 in March 2013 on which an actuarial gain of £1,747,000 arose in the year. The Company’s net decrease in funds was (£5,269,718) (2013: increase £2,710,720).

11 Tangible assets

Group Long Short leasehold leasehold Furniture, Freehold improve- improve- fixtures Motor property ments ments & fittings vehicles Total £ £ £ £ £ £

Cost

At 1 April 2013 16,416,335 4,464,456 1,129,204 10,519,790 3,621,802 36,151,587

Additions 2,063,558 - 107,567 991,501 367,101 3,529,727

Disposals - - (21,500) (321,612) (370,549) (713,661)

At 31 March 2014 18,479,893 4,464,456 1,215,271 11,189,679 3,618,354 38,967,653

Accumulated Depreciation

At 1 April 2013 2,436,761 557,390 640,743 8,310,515 2,756,777 14,702,186

Charge for the year 290,274 78,180 101,192 980,744 417,930 1,868,320

Disposals - - (21,500) (286,077) (370,549) (678,126)

At 31 March 2014 2,727,035 635,570 720,435 9,005,182 2,804,158 15,892,380

Net book amounts

At 31 March 2014 15,752,858 3,828,886 494,836 2,184,497 814,196 23,075,273

At 31 March 2013 13,979,574 3,907,066 488,461 2,209,275 865,025 21,449,401

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Tangible assets

Company Long Short leasehold leasehold Furniture, Freehold improve- improve- fixtures Motor property ments ments & fittings vehicles Total £ £ £ £ £ £

Cost

At 1 April 2013 9,614,463 3,887,118 1,129,204 9,938,394 3,287,172 27,856,351

Additions 2,063,558 - 107,567 977,182 269,781 3,418,088

Disposals - - (21,500) (320,023) (245,489) (587,012)

At 31 March 2014 11,678,021 3,887,118 1,215,271 10,595,553 3,311,464 30,687,427

Accumulated Depreciation

At 1 April 2013 1,749,702 314,188 640,743 7,838,858 2,529,694 13,073,185

Charge for the year 154,237 62,194 101,192 940,237 368,576 1,626,436

Disposals - - (21,500) (285,117) (245,489) (552,106)

31 March 2014 1,903,939 376,382 720,435 8,493,978 2,652,781 14,147,515

Net book amounts

At 31 March 2014 9,774,082 3,510,736 494,836 2,101,575 658,683 16,539,912

At 31 March 2013 7,864,761 3,572,930 488,461 2,099,536 757,478 14,783,166

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12 Fixed asset investments:

Group 2014 2013 £ £

Fixed asset investments:

Listed in UK (at market value) 5,007,572 4,811,527

Movements in the value of fixed asset investments listed in the UK can be explained as follows:

2014 2013 £ £

Opening market value 4,811,527 4,332,968

Management charges (37,306) (31,636)

(Sale)/Purchase of investments (55) 5,229

Unrealised gain on investments held 233,406 504,966

Closing market value 5,007,572 4,811,527

Quoted securities are represented by: 2014 2013 £ £

UK Equity shares and funds - -

UK Investment trusts and unit trusts 5,007,572 4,811,527

5,007,572 4,811,527

The quoted securities include Alpha CIF for Endowments, income units, representing 99.9% of the portfolio.

Company 2014 2013 £ £

Fixed asset investments:

Listed in UK (at market value) 5,005,890 4,809,845

Paid up shares: 100% holding in Helping Sense Limited 30,000 30,000

5,035,890 4,839,845

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Movements in the market value of fixed asset investments listed in the UK can be explained as follows:

2014 2013 £ £

Opening market value 4,809,845 4,331,286

Management charges (37,306) (31,636)

(Sale)/Purchase of investments (55) 5,229

Unrealised gain on investments held 233,406 504,966

Closing market value 5,005,890 4,809,845

Sense owns 100% of the ordinary share capital of its subsidiary company Helping Sense Limited. Helping Sense Limited is incorporated in England and Wales and exists to raise funds for the charity Sense, the National Deafblind and Rubella Association. There is no readily available market value for the company and accordingly it is accounted for at cost. The trustees believe that the carrying value of the investment is supported by the underlying net assets.

Quoted securities are represented by:

2014 2013 £ £

UK Equity shares and funds - -

UK Investment trusts and unit trusts 5,005,890 4,809,845

5,005,890 4,809,845

The quoted securities include Alpha CIF for Endowments, income units, representing 99.9% of the portfolio.

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13 Debtors

Group 2014 2013 £ £

Trade debtors 4,187,387 3,907,567

Taxation recoverable 144,629 150,745

Other debtors 484,642 641,347

Prepayments and accrued income 3,202,562 2,749,930

8,019,220 7,449,589

No amounts included above fall due after more than one year.

Company 2014 2013 £ £

Trade debtors 2,271,273 1,920,186

Amounts owed by group undertakings 4,023 379,643

Taxation recoverable 144,629 150,745

Other debtors 229,126 317,882

Prepayments and accrued income 2,660,815 2,659,963

5,309,866 5,428,419

No amounts included above fall due after more than one year.

14 Current Asset Investments

Group 2014 2013 £ £

Bank deposits 4,000,000 8,000,000

Company 2014 2013 £ £

Bank deposits 4,000,000 8,000,000

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15 Creditors (amounts falling due within one year)

Group 2014 2013 £ £

Bank loans and overdrafts (note 16) 50,793 47,845

Other loans 9,000 9,000

Trade creditors 1,100,730 1,018,729

Taxation and social security 940,327 1,016,872

Accruals and other creditors 2,952,539 2,730,971

Deferred income 175,743 136,399

5,229,132 4,959,816

Company 2014 2013 £ £


Trade creditors 1,095,693 1,014,015

Taxation and social security 680,654 747,138

Accruals and other creditors 2,484,547 2,215,279

4,269,894 3,985,432

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16 Creditors (amounts falling due after more than one year)

Group 2014 2013 £ £

Bank loans and overdrafts 634,290 685,083


652,290 712,083

Company 2014 2013 £ £


The bank loan is in respect of 43 Middlesex Street, Glasgow and Fleuchar Street, Dundee which was financed by HBOS who have first charge on the properties. The loan is payable in equal instalments over 20 years and the interest charge is fixed at 1% over base rate. The other loans are interest free.

The bank loan repayments for the group fall due as follows:

2014 2013 £ £

Second to fifth year 236,464 209,808

After five years 397,826 475,275

634,290 685,083

At 31 March 2014 the Charity had no obligations under finance leases.

17 Share capital

The Charity has no share capital. The liability of the members is limited by guarantee. The members have undertaken to contribute such amount not exceeding one pound each as may be required in the event of the Charity being wound up.

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18 Movements in fundsGroup Income, Resources gains, expended Balance at Balance at losses and and 31 March 1 April 2013 transfers in transfers out 2014 £ £ £ £

General

Total general 20,637,793 80,865,127 87,072,581 14,430,339

Designated

Working with adults 7,387,096 8,684,781 5,668,998 10,402,879

Working with children 3,435,567 - 2,379,954 1,055,613

Working with older people 1,600 - 16 1,584

Campaigns and publicity 109,999 28,200 31,242 106,957

Quality, training and staff development 84,792 - 5,049 79,743

Work in Scotland 6,820,809 1,069,422 1,431,766 6,458,465

International work 515,000 - 141,588 373,412

Total designated 18,354,863 9,782,403 9,658,613 18,478,653

Restricted

Working with adults 2,883,989 877,156 851,767 2,909,378

Working with children 712,003 709,717 384,541 1,037,179

Working with older people 72,858 - - 72,858

Campaigns & awareness 4,728 60,468 60,236 4,960

Quality, training and staff development 15,472 667 - 16,139

Work in Scotland 2,865,224 1,149,871 1,141,675 2,873,420

International work 31,286 1,146,494 1,004,742 173.038

Total restricted 6,585,560 3,944,373 3,442,961 7,086,972

Endowment

Working with adults 438,770 - 8,623 430,147

Total endowment 438,770 - 8,623 430,147

Total funds 46,016,986 94,591,903 100,182,778 40,426,111

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Movements in fundsCompany Income, Resources gains, expended Balance at Balance at losses and and 31 March 1 April 2013 transfers in transfers out 2014 £ £ £ £

General

Income, gains, losses and transfers in, excluding pension deficit 16,702,176 62,107,266 64,000,547 14,808,895

Pension deficit (note 10) (24,000) (4,347,000) - (4,371,000)

Total general 16,678,176 57,760,266 64,000,547 10,437,895

Designated

Working with adults 7,387,096 8,684,781 5,668,998 10,402,879

Working with children 3,435,567 - 2,379,954 1,055,613

Working with older people 1,600 - 16 1,584

Campaigns and publicity 109,999 28,200 31,242 106,957

Quality, training and staff development 84,792 - 5,049 79,743

Total designated 11,019,054 8,712,981 8,085,259 11,646,776

Restricted

Working with adults 2,883,989 877,156 851,767 2,909,378

Working with children 712,003 709,717 384,541 1,037,179

Working with older people 72,858 - - 72,858

Campaigns & awareness 4,728 60,468 60,236 4,960

Quality, training and staff development 15,472 667 - 16,139

Total restricted 3,689,050 1,648,008 1,296,544 4,040,514

Endowment

Working with adults 438,770 8,623 430,147

Total endowment 438,770 8,623 430,147

Total funds 31,825,050 68,121,255 73,390,973 26,555,332

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Unrestricted funds

Unrestricted funds are held for the general purposes of the charity as set out in its governing document.

Designated funds

Designated funds are unrestricted funds that the charity has earmarked for particular projects and uses in the future. Major examples are Asset Replacement funds and Cyclical Maintenance funds, which are created for the future maintenance, repair or replacement of property, equipment, vehicles and other assets necessary for the continuance of the charity’s work. Funds are transferred from unrestricted funds when particular projects are set up.

Restricted funds

Restricted funds are funds held by the charity for particular applications, specified by the donor, within the charity’s objectives, and can only be applied to those particular purposes. The restrictions may apply to income or capital or both. Many of the restricted funds are generated through Asset or Project targeted appeals.

Endowment funds

The Endowment fund is a restricted fund held as a capital fund for the charity’s benefit. In 2003 the Charity Commission gave its approval for Sense to relocate from its endowed property known as the Princess Royal Centre in Birmingham to other property in the area and to charge the costs of doing so to the Endowment fund.

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19 Analysis of net assets between fund balances

Net assets at 31 March 2014 were analysed between the funds as follows:

Group General Designated Restricted Endowment Total £ £ £ £ £

Tangible fixed assets 14,318,329 4,662,847 3,663,950 430,147 23,075,273

Fixed asset investments 5,007,572 - - - 5,007,572

Net current assets 127,728 13,815,806 3,423,022 - 17,366,556

Long term liabilities (652,290) - - - (652,290)

Pension liability (4,371,000) - - - (4,371,000)

Total 14,430,339 18,478,653 7,086,972 430,147 40,426,111

Company General Designated Restricted Endowment Total £ £ £ £ £

Tangible fixed assets 13,837,641 - 2,272,124 430,147 16,539,912

Fixed asset investments 5,035,890 - - - 5,035,890

Net current assets (4,046,636) 11,646,776 1,768,390 - 9,368,530

Long term liabilities (18,000) - - - (18,000)

Pension liability (4,371,000) - - - (4,371,000)

Total 10,437,895 11,646,776 4,040,514 430,147 26,555,332

20 Capital commitments

Sense holds designated funds for planned future projects, but does not treat them as capital commitments.

21 Contingent liability

Contingent liabilities of £1,196,000 (2013: £1,196,000) exist relating to grants received from the Department of Health and Leeds Healthcare towards the development of 12 Hyde Close, Barnet; 138 Bradford Road, Leeds; 509 Leeds and Bradford Road, Leeds, which may be repayable in certain circumstances.

Sense, Sense Scotland and Helping Sense Limited are members of a group VAT registration. Under the Value Added Tax Act 1983, all the members of a VAT group are jointly and severally liable for any tax due during the period of their membership.

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22 Operating lease commitments

At 31 March 2013 the Charity had annual commitments under non-cancellable operating leases as set out below:

2014 2013

Group Land and Land and buildings Other buildings Other £ £ £ £

Operating leases which expire:

Within one year 245,628 21,203 560,351 24,799

In two to five years 1,047,908 70,827 871,790 62,991

After five years 1,395,854 - 1,498,859 -

2,689,390 92,030 2,931,000 87,790

2014 2013

Company Land and Land and buildings Other buildings Other £ £ £ £

Operating leases which expire:

Within one year 98,296 12,624 447,224 15,476

In two to five years 973,090 70,827 750,817 62,991

After five years 1,295,779 - 1,432,484 -

2,367,165 83,451 2,630,525 78,467

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23 Reconciliation of net incoming resources to net cash inflow from operating activities

2014 2013 £ £

Net (outgoing)/ incoming resources before revaluation (810,062) 1,900,232

Difference between pension charge and cash contributions (667,000) (630,000)

Investment income received (313,801) (529,219)

Interest paid 37,306 31,636

Investment management charges 42,449 45,227

Depreciation 1,868,320 1,761,378

Profit on sale of tangible fixed assets - (27,385)

Decrease/(increase) in stocks 147,532 (113,038)

(Increase) in debtors (569,631) (1,885,217)

Increase in creditors 266,368 354,143

Net cash inflow from operating activities 1,481 907,757

24 Reconciliation of net cash flow to movement in net liquid resources

2014 2013 £ £

Increase/(decrease)/ in cash in the year 721,632 (1,238,423)

Cash inflow from loans and lease financing 56,845 54,067

Decrease in current asset investments (4,000,000) -

Changes resulting from cash flows (3,221,523) (1,184,356)

Net liquid resources at 1 April 2013 16,991,191 18,175,547

Net liquid resources at 31 March 2014 13,769,668 16,991,191

On the maturation of long term cash deposits £4,000,000 was transferred from investments bank accounts into the current bank account.

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25 Analysis of changes in net liquid resources

At At 1 April Cash Other 31 March 2014 flows changes 2014 £ £ £ £

Cash at bank and in hand 9,760,119 721,632 - 10,481,751

Current asset investments 8,000,000 (4,000,000) - 4,000,000

Debt due within one year (56,845) 56,845 (59,793) (59,793)

Debt due after one year (712,083) - 59,793 (652,290)

16,991,191 (3,221,523) - 13,769,668

26 Related Parties

Sense has taken advantage of the option conferred by FRS 8 Related Party Disclosures that allows it not to disclose transactions with subsidiaries

27 Subsidiary Companies

The charity controls three charitable company subsidiaries - Sense Scotland (registered in Scotland), Sense International (registered in England) and Coventry Society for the Blind (registered in England). The subsidiaries have similar aims and objectives to the parent charity. All activities have been consolidated on a line by line basis into the statement of financial activities.

A summary of the results of the subsidiaries for the year ended 31 March 2014 are shown below:

Sense Scotland 2014 2013 £ £

Incoming resources 21,650,161 20,978,231

Resources expended 21,765,862 19,571,646

Net movement in funds (115,701) 1,406,585

Assets 14,662,195 14,827,176

Liabilities (1,428,228) (1,477,510)

Funds 13,233,967 13,349,666

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Sense International 2014 2013 £ £

Incoming resources 1,421,778 1,748,944

Resources expended 1,627,236 1,714,053

Net movement in funds (205,458) 34,892

Assets 823,878 1,436,261

Liabilities (187,066) (593,991)

Funds 636,812 842,270

Coventry Society for the Blind 2014 2013 £ £

Incoming resources - -

Resources expended - -

Net movement in funds - -

Assets - -

Liabilities - -

Funds - -

The charity also owns the whole of the issued share capital of Helping Sense Limited, a company registered in England. The subsidiary is used for non primary purpose trading activities, namely the support of shop sales of new goods and the organisation of fundraising activities. The total net profit is gifted to the charity.

A summary of the results of the subsidiary for the year ended 31 March 2014 is shown below:

Helping Sense Limited 2014 2013 £ £

Turnover 2,609,472 2,378,514

Cost of Sales (762,780) (628,893)

Gross Profit 1,846,692 1,749,621

Operating Expenses (1,680,286) (1,517,402)

Net profit 166,406 232,219

Assets 198,770 264,728

Liabilities (168,770) (234,728)

Net assets 30,000 30,000

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The Council is indebted to all donors for their support, both financial and otherwise, without which it would not have been possible to achieve all that we did. Substantial donations have been received with gratitude from the following:

Sense International

The Equitable Charitable TrustsEvan Cornish FoundationCLSA Chairman’s TrustVitol FoundationThe Tesco Charity TrustThe Beatrice Laing TrustThe James Tudor FoundationThe Tresillian TrustThe BP FoundationJersey Overseas Aid CommissionThe European UnionBig Lottery FundDepartment for International DevelopmentGovernment of ScotlandAnglo Peruvian SocietySwiss RomaniaEmbassy of AustraliaThe Orange FoundationKentalis CordaidOnce Foundation The Raja Trust

Sense

SFIA Educational TrustThe Geoff and Fiona Squire FoundationBBC Children In Need AppealThe Connie & Albert Taylor Charitable TrustThe Hadley TrustThe Lockwood Charitable Foundation

SUPPORTERSMAJOR

The Peacock Charitable TrustThe City Bridge Trust (ex. Bridge House)The Garfield Weston FoundationRoyal Masonic Trust for Girls and BoysKing/Cullimore Charitable TrustThe Albert Hunt TrustThe Donald Forrester TrustThe Eveson Charitable TrustAwarenessThe R Arrowsmith-Brown Charitable TrustG J W Turner TrustSmith Charitable TrustThe Heath Charitable TrustThe Constance Travis Charitable TrustCHK Charities LtdMyristica TrustThe Childwick TrustThe Ernest Kleinwort Charitable TrustThe Florence Shute Millenium TrustThe Liz & Terry Bramall FoundationThe Thomas J Horne Memorial TrustAudrey Earle Charitable TrustThe P F Charitable TrustThe Bartle Family Charitable TrustThe Blair FoundationThe Tanner TrustThe Ballinger Charitable TrustThe Boshier-Hinton FoundationThe Douglas Turner TrustLady Blakenham’s Charity TrustRichard Radcliffe Charitable Trust

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The Annette Duvollet TrustThe Blatchington Court TrustThe Princess Anne’s Charities TrustAllen & Overy London FoundationBirkdale Trust for Hearing Impaired LtdHelp a Capital ChildCantiacorum FoundationThe Belacqua Charitable TrustThe Essex Youth TrustMiss W E Lawrence 1973 Charitable SettlementThe Open Gate TrustThe Peter Storrs TrustBaron Davenport’s Charity TrustJoseph Strong Frazer TrustPayne Gallwey 1989 Charitable TrustThe Eleanor Palmer TrustThe George & Esmee Pollitzer SettlementThe Osberton TrustThe Thomas Farr CharityThe Miss J K Stirrup CharityThe Violet Helen Dixon Charitable TrustThe Anson Charitable TrustEagle Charity TrustFreddie Wakeham Charitable TrustPaul Bassham Charitable SettlementThe Cutler TrustThe David Uri Memorial FoundationThe Marjorie & Geoffrey Jones Charitable TrustThe Misses C M Pearson & MV Williams Charitable Trust

The Ratcliff FoundationThe Stamford House TrustDRI Williams Trust Jack Patston Charitable TrustThe Edward & Dorothy Cadbury Trust (1928)Department of Health (Innovation, Excellence and Strategic Development Fund)Department of Education (National Prospectus Grant Programme)Big Lottery Fund

Sense Scotland

A M Pilkington’s Charitable TrustThe Margaret Murdoch Charitable TrustAlexander Moncur’s TrustThe Big Lottery FundThe Robertson TrustEsmee Fairbairn FoundationAgnes Hunter Charitable TrustBonnetmakers & Dyers GuildHugh Fraser FoundationGannochy Charitable TrustChildren’s Aid (Scotland) LtdMrs Janet T Isles-Denny TrustRadio Clyde Cash for Kids

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Charity Information

Registered Address for Sense and Sense International 101 Pentonville Road, London N1 9LGTel: 0300 330 9250 or 020 7520 0999Fax: 0300 330 9251 or 020 7520 0958Email: [email protected]

Information and adviceFor details about the support and services Sense can offer and information about deafblindness, please contact the Information and Advice service on:Tel: 0300 330 9256 or 020 7520 0972Textphone: 0300 330 9256 or 020 7520 0972Fax: 0300 330 9251Email: [email protected].

Professional Advisers to Sense

Independent auditors: PricewaterhouseCoopers LLPBenson House, 33 Wellington Street, Leeds LS1 4JP

Bankers: National Westminster BankNational Westminster Bank plcKings Cross Branch, 266 Pentonville Road, N1 9LE

Solicitors:Anthony Collins Solicitors LLP134 Edmund Street, Birmingham B3 2ES

Insurance Advisors:Willis LtdStuart House, Caxton Road, Fulwood, Preston PR2 9RW

Investment Advisers: Sarasin & Partners LLPJuxon House, 100 St Pauls Churchyard, EC4M 8BU

Internal Auditors: Crowe Clark Whitehill LLPSt Bride’s House, 10 Salisbury Square, London EC4Y 8EH, UK

Sense and Sense International 101 Pentonville RoadLondon N1 9LG

Tel: 0300 330 9250Fax: 0300 330 9251Text: 0300 3309252Email: [email protected]: www.sense.org.uk

Sense Northern Ireland Sense Family CentreThe Manor House51 Mallusk RoadMalluskCounty Antrim BT37 9AA

Tel/text: 028 9083 3430Fax: 028 9084 4232Email: [email protected]

Sense Cymru Ty Penderyn26 High StreetMerthyr Tydfil CF47 8DP

Ffôn/tel: 0845 127 0090Ffacs/fax: 0845 127 0091Testud/text: 0845 127 0092Email: [email protected]

Sense Scotland 43 Middlesex StreetKinning Park Glasgow G41 1EE

Tel: 0141 429 0294Fax: 0141 429 0295Text: 0141 418 7170Email: [email protected]: www.sensescotland.org.uk