RNIB Group Annual Report and Accounts 2016/17

ContentsChair and Chief Executive Officer introduction 2

Trustees’ Report (incorporating Strategic Report) 4Structure, governance and management 4Statement of Trustees’ responsibilities 7Statement of public benefit 8Our strategy and business plan 9Our values 10Achievements, performance and future plans 10Financial review 19Fundraising review 26Principal risks and uncertainties 29Employee engagement 32Health, safety, environment and compliance 34

Financial Statements 36Independent auditors’ report to the Trustees of RNIB 36Group statement of financial activities for the year ended 31 March 2017 39Group and RNIB balance sheets as at 31 March 2017 42Group cash flow statement for the year ended 31 March 2017 44Notes to the financial statements for the year ended 31 March 2017 46

Thank you to our supporters, partners and volunteers 114Who’s who at RNIB 115Contact details 128

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Chair and Chief Executive Officer introduction

Transforming RNIB for the future

It’s been a year of great change at RNIB: a year of challenges, transformation, growth and learning.

Our biggest challenge has been the urgent need to modernise at the same time as securing a sustainable financial future. This will prepare us for the rapidly changing needs of an increasing number of blind and partially sighted people.

It’s a challenge we’ve tackled head on.

A 360-degree approachTo put us in the best position to meet this increased demand, we’ve looked at every aspect of our organisation and created a wide-ranging transformation programme. This has included an overhaul of our structures, strategy and financial management to make sure they deliver everything we need.

We also made the bold move to transform the RNIB group of charities. This saw the merger of Action for Blind People and RNIB Charity teams into one charity under the RNIB name, from 1 April 2017.

Financial Transformation PlanWe have recognised that our financial trajectory was not sustainable and we have implemented a Financial Transformation Plan which will safeguard a sustainable future for RNIB.

An organisation ready for the futureThis is just the start. We’re introducing new ways of working, alongside new systems and technology. Investing in our people and the community of blind and partially sighted people is key. This will dramatically increase the opportunities to give and receive support.

As a result, RNIB is changing into a very different organisation. One that’s fit for the future and is ready to step up to the demands we face.

Managing growthDespite the many challenges we’ve taken on this year, we are still growing. The number of direct customers is up by 12 percent since last year to 107,000. Our Connect community has connected and engaged with 28,700 people and we’ve developed community ideas like ‘How I See’ and ‘The Cane Explained’.

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Listening to our customers, challenging the status quoWe’ve listened to the issues blind and partially sighted people feel are important and worth highlighting. And, as ever, our volunteer community campaigners continued to challenge government, health and local authorities, and transport operators to do better, pushing them to make the world a more inclusive place for someone living with a sight problem.

Supporting people with sight loss every dayOur sight loss advisers (also known as ECLOs or Eye Clinic Liaison Officers) have supported 20,900 people in eye clinics. That's a nine percent increase since last year. With help from our UK Advice Service, 16,200 customers have claimed over £29 million in benefits. And we’ve helped over 200 people with sight loss to find new jobs, while supporting another 700 to stay in work.

Encouraging people to look after their eyesWe’ve reached hundreds of thousands of new people with important messages about looking after their eyes by promoting regular sight testing, in partnership with Specsavers in the press and on TV. Our eye health information website pages have seen a leap in the number of visitors to 1.37 million – that’s a 36 percent increase in one year.

Preparing for the next 150 yearsOur transformation and growth continues. We’re looking forward to our 150-year anniversary in 2018, when we’ll celebrate and thank the generous individuals and organisations across the UK who make all our work possible.

Our commitment to our ambition remains as strong as ever: to make every day better for everyone affected by sight loss.

This Trustees’ Report explains what we’ve done, the impact we’ve had and our plans for next year, along with our financial statements.

We’d like to thank you for taking the time to read this report and for your continuing support of RNIB.

Sally Harvey, Chief Executive Officer

Kevin Carey, Chair

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Trustees’ Report (incorporating Strategic Report)Royal National Institute of Blind People (RNIB) Trustees’ report and the audited Group and RNIB financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities 2015, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act.

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

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

Contact details, together with details of the Trustees and advisers, can be found on pages 120 to 128 and form part of the Trustees’ Report.

The Trustees’ Report includes a Strategic Report. In approving the Trustees’ Report, the Board of Trustees has also approved the Strategic Report.

Structure, governance and management

Our legal structureThe Royal National Institute of Blind People (RNIB) is a registered charity, number 226227 in England and Wales, number SC039316 in Scotland and number 1226 in the Isle of Man. Established in 1868, RNIB was incorporated under Royal Charter in 1949, with a Supplemental Charter in 1993 (revised in 2007 and 2014).

Between 1 September 2015 and 31 March 2017, RNIB group of charities was structured so that RNIB Charity and Action for Blind People, both subsidiaries of RNIB, focused on customer service delivery; whilst support functions were amalgamated in RNIB to ensure efficiency for all member charities. The latter stages of 2016/17 were spent planning for completion of the group restructuring process for implementation in 2017/18 (see note 27).

RNIB is governed by a Trustee Board. The Trustee Board meets a minimum of four times a year and makes all important strategic, policy and financial decisions, and has overall responsibility for RNIB activities.

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In 2016/17 of those serving on the Board, six Trustees were nominated and appointed by RNIB Charity and four Trustees were nominated and appointed by Action. Two independent Trustees were appointed by the Board itself.

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

How we are managedDuring 2016/17, the key committees that supported the Board were as follows, with a description of their areas of responsibility:

RNIB Group Audit and Risk Committee: overseeing effective auditing, financial reporting, internal controls and risk management;

Fundraising Committee: supporting the delivery of the strategic priorities and outcomes in the RNIB Group Strategy 2014/19, by developing fundraising strategies and advising on key issues relating to their implementation;

Governance Committee (and Nominations Committee): taking an overview of the governance arrangements of RNIB and supporting the Board and Executive in ensuring that effective governance structures are in place. Appointing a panel to review nominations and act as interview panel for Trustee applicants;

Investment Committee: overseeing the effective investment of funds for RNIB on behalf of the Board. The same committee acts in an advisory role on the effective investment of funds to the Trustees of the RNIB Retirement Benefits Scheme, although under a separate remit;

Remuneration Committee: reviewing the salaries for the Chief Executive Officer (CEO) and Group Directors and other relevant matters, such as the general position relating to remuneration at RNIB (including approving general pay increases), and reviewing whether it is in the interests of RNIB to pay or contract with Trustees or connected persons for the provision of services to the organisation, rather than any other company.

The day-to-day management of RNIB is delegated to the Executive. During 2016/17, the Executive was restructured alongside other senior grades to prepare the ground for a full organisational restructure effective from 2017/18. Below are the two structures of the Executive during 2016/17.

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Executive up to 31 December 2016:

Chief Executive Officer (CEO); Managing Director, Places (RNIB Charity); Managing Director, Solutions (RNIB Charity); Chief Executive, Action for Blind People; Group Director, Engagement; Group Director, Fundraising; Group Director, People; Group Director, Resources.

Executive from 1 January 2017:

Acting Chief Executive Officer; Advocacy Director and Deputy Chief Executive Officer; Services Director (formally effective 01 April 2017); Managing Director, Solutions; Relationships Director; Corporate Services Director.

The costs of effecting this restructure are included in the staff costs in note 8 of the financial statements.

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

Lesley-Anne Alexander, former CEO, left RNIB during 2016 and Sally Harvey, formerly Managing Director, Places, was appointed Acting CEO.

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

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

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

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

In April 2014, RNIB Charity was set up. On 01 July 2014, we restructured the RNIB group of charities to support the effective delivery of the new strategy. Until 31 March 2017 the relationship between RNIB and Action and RNIB Charity was governed through Association Agreements; these were both updated in September 2015.

The latter stages of 2016/17 were spent planning for the culmination of the RNIB Group restructuring, effective 2017/18, with the full merger of the largest group entities (RNIB Group, RNIB Charity and Action for Blind People) into a single charity, RNIB. For further details of this please see note 27.

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the RNIB Group annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England, Wales and Scotland 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 charity and the group and of the incoming resources and application of resources of the group for that period.

In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments and estimates that are reasonable and prudent; state whether applicable accounting standards, comprising FRS 102, 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 charity 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 charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for

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taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

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

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

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

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

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Our strategy and business plan

Our ambition is to make every day better for everyone affected by sight loss and to prevent avoidable sight loss.

This was the third year of our 2014-19 strategy and we concentrated our efforts on four priorities:

1. Being There: so everyone with serious sight loss gets the practical and emotional support they need to rebuild their lives

2. Independence: supporting people to live independently3. Inclusion: influencing society to include blind and partially sighted people 4. Prevention: preventing avoidable sight loss

Financial challengesWe have started, and will continue our financial transformation, during the next two years. Further details of the steps being taken are included in the Financial Review from page 19. Our fundraising and commercial activity remains essential to our success. We’ll need to continue to overcome external pressures to make sure our organisation has the resources it needs to deliver our strategy.

Building the right infrastructure and partnershipsIt is vital we have the right structure, systems and processes in place to deliver our ambition and strategy. This will be critical in 2018 when legislative requirements from General Data Protection Regulation (GDPR) comes into play. Getting our infrastructure right is fundamental, but we also need to broaden and deepen our relationships to achieve our strategic priorities. This relies on growing and nurturing our partnerships and building our volunteer numbers, especially those who have experienced sight loss.

Improving our reachWe want to engage many thousands more people – our aim is to reach 250,000 blind and partially sighted people by 2019. This year alone, we have grown our customer reach by 12 percent on 2015/16 to 107,000, including reaching 50,500 new customers across all our services. This is good progress but we’re still a little behind where we need to be to hit our target.

A work in progressWhat we achieved in 2016/17 was the latest step in a long-term RNIB and sector journey. This will continue to 2019 and beyond. Over the next two years, we’ll make more changes to our finances and infrastructure, and continue our transition work.

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We’ve had some setbacks and we still face many challenges in the wider context of national and global uncertainty. But these things have sharpened our focus on our mission to address the needs of blind and partially sighted people.

Our valuesOur values describe our ethos and drive everything we do:

We’re led by blind and partially sighted people We’re collaborative, creative, inclusive and open

Blind and partially sighted people are at our heart and influence everything we do.

The RNIB Connect Community embodies the values of RNIB and we’ve grown this community over the last year. It gives people with sight loss the chance to lead our organisation, shape our work and connect with each other.

Achievements, Performance and Future Plans

Strategic Priority 1: Being There

When you’re diagnosed with a sight condition it can be devastating. From the first diagnosis, anyone affected by sight loss, as well as their families and friends, needs advice, as well as practical and emotional support.

We’re focused on being there with this service for everyone in the UK.

What we’ve done

UK Advice Service We brought together our advice services to create our flagship UK Advice Service. It’s a clear front door to all our services, where people can find and get the support they need and want, wherever they live.

Service Brilliance To support this new approach, we’ve launched a new programme called Service Brilliance to improve our services. This helps our frontline staff develop the skills they need to discover our customers’ unspoken needs.

Eye Clinic Support ServiceWe have made progress with the primary face-to-face variant of the Sight Loss Advice Service – the Eye Clinic Support Service. In 2016/17 we set up new, fully-resourced services in nine trusts and health boards across the UK. We’re already the largest single provider of Eye Clinic Liaison Officers (ECLOs) in the UK. Our strategy is to work in partnership to create as many RNIB standard accredited ECLOs as possible.

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Our impact

ECLOs growth resultsOur Sight Loss Advisers (ECLOs) supported 20,900 people this year against a target of 33,300. This shows a net growth of nine percent from 19,225 people reached in 2015/16. Estimates on the time required to put new posts in place and be fully operational proved to be over ambitious, which led us to miss our target by 37 percent. We have also put a more realistic target in place for the coming year.

Increased ECLOs capacityThere are now 90 full time equivalent ECLOs trained by RNIB working across the UK.

Customer satisfaction: highCustomer satisfaction with ECLOs continues to be high. 89 percent of customers said they got all, or most of, the practical support they needed. 66 percent felt their emotional well-being had improved thanks to the service.

How we’ll build on our impact

Develop Service BrillianceWe’ll continue to build our Service Brilliance programme so we can provide our customers with the highest quality support and understand their holistic needs.

Expand sight loss and advice servicesWe’ll continue to expand our sight loss services in eye clinics, particularly in England. We’ll also expand our UK Advice Service by developing our online and telephone offer. Working with local sight loss and community organisations means our customers get the support they need, wherever they live, and in whatever way they choose to engage with us.

Objectives for 2017/18:

In the coming year, we aim to: Deliver our major fundraising initiative which aims to secure £10 million over 3

year for our sight loss advice services; Increase our ECLO coverage in England from 45 percent to 65 percent of

Primary Care Trusts; Reach 25,500 patients through our ECLO services in eye clinics; and Increase our UK Advice Service customers by 33 percent.

Strategic Priority 2 and 3: Independence and Inclusion

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Blind and partially sighted people of all ages should be able to make informed choices about their lives. However, isolation and exclusion can result from barriers to using mainstream goods and services and poor employment opportunities.

We’re raising awareness in communities and across society to secure improved access for blind and partially sighted people. We are focused on promoting ongoing independence by offering opportunities to develop skills for confident living.

What we’ve done

Confidence building courses We’ve created and run many courses that give information, advice and practical support to people as they adapt to living with sight loss. These include an introduction to technology, low vision support and information on the rights of blind and partially sighted people. The courses are delivered in partnership with other organisations. They’re a great way to connect people and help stop them becoming isolated.

Digital inclusion programmesWe’ve continued to run our digital inclusion programmes, like Online Today, to help people who have disengaged from the digital world to get online or stay online.

Employment support The number of blind and partially sighted people of working age in employment has fallen over the last decade. We help people to find work, and work with them and their employers to keep them in their job if they develop a sight condition. RNIB is part of a sector coalition to improve the employment rate of people with sight loss in our own sector.

Successfully defending key benefitsWe’ve defended key benefits that are vital to support blind and partially sighted people’s independence. We fought successfully for the withdrawal of a proposal to move Attendance Allowance to local authorities. And we’ve continued to challenge major concerns on Personal Independence Payments as many blind and partially sighted people were initially refused the benefit with no justification.

Accessible Health Information We launched our ‘Need It to Read It’ campaign to embed the NHS Accessible Health Information Standard. This encourages blind and partially sighted people to sign up and let their GPs know their preferred format for information.

Getting around safelyWe’ve worked closely with our Volunteer Campaign Co-ordinators (VCCs) to persuade local authorities to sign street charters that commit to clear streets to help blind and partially sighted people get around safely. Events like ‘Swap with Me’ have brought together bus operators and people with sight loss to help build understanding of what they need. The aim is to get them to act on this knowledge to improve travel for blind and partially sighted passengers.

Improved rehabilitation services

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‘See Plan and Provide’ has driven improvements to vision rehabilitation services, with more new rehabilitation officers and improved support for thousands of people with sight loss. We’ve also helped to improve care pathways and reduce waiting times.

Developing online servicesThere has been a significant growth in the number of people independently accessing the Library through technology, including a 53 percent increase in the number of users of the online catalogue and the number of customers using RNIB Overdrive - more than doubling the total at year-end 2015/16 (from 2,605 to 5,243).

Our impact

Living with Sight Loss coursesOver 1,800 people have attended our Living with Sight Loss courses.

Online Today reach extendedWe’ve reached 29,000 people through Online Today, increasing people with sight loss’s ability to use accessible technology. 57 percent of people showed an increase in their ability to use it, and around 5,800 people with sensory loss are back online or online for the first time. It has helped improve people’s independence through better digital accessibility skills, so they can use the internet for navigation and shopping, as well as engaging with government services and managing their health.

Employment and rights supportOur employment support service helped over 200 people with sight loss to find a new job. We also supported 700 people to stay in work. Our UK sight loss advisors gave welfare rights support to 16,200 customers, to help them claim over £29 million in benefits.

Bus Charter success12 bus operators have signed up to our Bus Charter, including the five biggest UK bus operators. 80 percent of bus journeys are now covered by our Bus Charter.

Accessible medical information campaignOver 5,000 people signed up to our ‘Need It to Read It’ campaign. This aims to ensure health and adult care providers in England are meeting the statutory requirement to provide medical information in an accessible format.

Talking Books thrivingOur Talking Books service grew by 24 percent in 2016/17, with nearly 10,000 new members. RNIB Overdrive has more than doubled its customers, with over 5,000 people using it independently.

Bookshare growthThe RNIB Bookshare service offers accessible materials to students with sight loss at the same time as their peers to help them fulfil their academic potential. There’s been an overall increase to 4,500 subscribers. RNIB Bookshare counts

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16 percent of UK schools, 153 universities and 280 sensory support services as subscribers.

How we’ll build on our impact

Service reviewWe’ll review our services that support the independence and inclusion of people with sight loss. Our aim is to support thousands more customers, more consistently and to a higher standard.

Independence through technologyWe believe technology is the key to achieving independence for people with sight loss. We’ll combine all our specialist technology support into one coordinated team. And we’ll bring together our staff, partners, volunteers and customers to create a sustainable, scalable and accessible technology service for blind and partially sighted people across the UK.

Ongoing campaigningWe’ll continue to support local blind and partially sighted people to campaign for safe, secure streets. With 80 percent of UK bus journeys already covered by our charter, we’ll continue to push to secure greater accessibility from transport companies. We’ll continue our campaign to embed the NHS Accessible Information Standard. And we’ll champion an approach to self-advocacy, to help blind and partially sighted people exercise their right to accessible information.

Spreading the wordWe’ll help even more customers independently access our reading services digitally through RNIB Overdrive or our online catalogue at www.rniblibrary.com.

Objectives for 2017/18:

Secure funding for a new campaign to change people’s attitude to sight loss, working with new and existing partners;

Increase the number of people with sight loss involved in our ‘Need it to Read it’ NHS Accessible Standard campaign;

20 percent increase in the number of people attending our confidence building courses across all channels including telephone and digital;

Engage 40 partners and work with them to support independence through confidence building and technology services.

Strategic Priority 4: Prevention

Sight loss has a major impact on people’s quality of life and it’s reflected in a significant cost to society. RNIB-commissioned independent research, which estimates the total cost of sight loss to the British economy is around £28 billion a year. Direct healthcare expenditure sits at £3 billion a year.

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We play a critical role in preventing sight loss and improving people’s eye health. It’s important that people understand how to look after their sight and can access the tools and information to help them do it properly.

What we’ve done

Promoting regular eye testsRNIB and Specsavers joined forces to help educate people about how regular eye tests help maintain and protect their sight through a range of press and TV activity.

Online eye health information serviceWe’ve worked with partners to develop our online eye health information service to include advice on a wide range of other health conditions, such as diabetes and dementia. Customers and eye health experts have tested and reviewed our revamped eye health information pages.

Influencing Clinical Commissioning Group plansBy sharing patients’ perspectives on eye care provision for glaucoma, cataract and age-related macular degeneration (AMD), we influenced eye care commissioning plans produced by CCGs. We’ll continue our campaign to embed eye health within health and social care policy and services.

Our impact

Promoting regular eye testsOur partnerships with Specsavers helped us reach new people with important messages about looking after their eyes and regular sight testing. Our 2017 YouGov poll suggests that, in the year since RNIB and Specsavers joined forces, an additional 1.1 million people have taken action to improve their eye health by visiting an optician.

Increase in eye health information usersThere’s been a 36 percent increase in users of our eye health information web pages since last year, with 1.37 million unique users. 74 percent of customers who contacted us had a better understanding of their condition or treatment.

Empowering people We recruited over 140 patients to help influence clinical guidelines for AMD, cataracts and glaucoma. We worked to give people at risk of losing their sight more information and support to help them take an active role in looking after their eye health. In Leeds, Liverpool and Manchester, we recruited and worked with 67 volunteers and 231 community eye health champions to promote eye health. Key messages focused on how to live well with diabetes and prevent sight loss.

Supporting new treatments and learningWe supported the approval of new treatments for diabetic macular oedema, which will help around 218,000 patients. To support GPs, practice nurses and optometrists support people with diabetes and manage their condition, we shared

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learning with every diabetic retinopathy screening service across the UK. This reached 17,800 of a target of 20,000 health practitioners.

How we’ll build on our impact

Continuing our partnership with SpecsaversWe’ll continue to work closely with Specsavers to raise awareness of the importance of eye health.

Campaigning for services We will continue our influencing activity to help ensure that eye care services have capacity to deliver the treatment people need for eye conditions. We will campaign hard nationally to help stop people losing their sight due to NHS capacity issues, targeting a reduction in people losing their sight whilst on hospital waiting lists. We will present innovative ways to improve capacity within eye clinics - supporting patients to have more confidence and knowledge to speak up for themselves.

Objectives for 2017/18:

Increase the number of people attending an eye health check-up as a result of our Transforming Eye Health campaign with Specsavers, through TV ads, press campaign and our UK tour of the RNIB Eye Pod;

Run a pilot project, ‘Ask and Tell’, to support patients to become self-advocates and take a more active role in self-management;

Support an All-Party Parliamentary Group (APPG) on an Eye Health and Visual Impairment Inquiry into the capacity of eye clinics. We will facilitate round-table discussions to promote innovative ways of working to meet patients’ needs;

Develop and coordinate a sector-wide campaign to influence the NHS and commissioners to ensure capacity will meet demand for eye health services to prevent avoidable sight loss.

A more connected community

Our community of people with sight loss offers a rich and diverse source of experience and knowledge. It’s a real force for positive change. We believe that we can create a place where everyone can find something relevant and helpful to their lives by facilitating a more connected community. RNIB Connect is transforming both RNIB and our wider society by making sure the voices of blind and partially sighted people are heard and are always at the heart of every relevant decision.

What we have done

Developing digital contentOver the last year, we’ve changed the way we communicate with our customers by asking members of RNIB Connect to help develop our digital content. Much of this

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content is now being led and developed by the voices of the Connect Community Campaigns such as ‘How I See’ and ‘The Cane Explained’. These were created in response to listening to the issues blind and partially sighted people feel are important. Both were inspired by real-life stories from the community. New RNIB Connect ForumWe also launched the RNIB Connect online community forum to help people meet others with similar experiences and share information. We recruited 35 volunteers to be Community Connectors. They shape and deliver engagement work to reach as many people as possible, along with creating relevant and accessible activities. More than 100 other volunteers back them up with local support.

Our impact

A growing communityOur RNIB Connect Community has grown to 28,700 people. Their diverse voices have helped us reach over 2.5 million people on social media. Around 2 million younger people were engaged by our ‘How I See’ campaign through low cost social and digital channels.

Podcasting success150,000 unique listeners now connect with us through our podcasts. The Weekly Connect on RNIB Connect Radio, launched in October 2016, gives everyone affected by sight loss the chance to share their views and opinions on any issue.

How we’ll build on our impact

Growing our communityWe’ll continue to grow the RNIB Connect Community – key to this is increasing the proportion of actively-engaged members. We want to build the influence and leadership of what we do by blind and partially sighted people. We’re working to integrate community members into the fabric of our organisation to create a truly productive partnership.

Building local communitiesWe’ll work to build our community at a local level and increase our relevance to under-represented groups. This includes focusing on increasing the diversity of the community in terms of young people, and people from Black and Minority Ethnic backgrounds.

Driving a movement for changeWe’ll encourage and enable more community members to self-organise, have their voice heard and campaign for change locally and nationally using modern tools and platforms like RNIB Connect online.

Objectives for 2017/18:

Increase our Connect community and increase active participation in our organisation

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Grow relevance amongst young people, and people from Black and Minority Ethnic backgrounds to diversify our community

Transforming RNIB

We are committed to achieving our ambition for our customers and anyone affected by sight loss. To do this, we need to build on the big changes we’ve made this year and continue to transform in the year ahead. In 2016/17, we started to put the right technology, systems, people and structures in place to deliver our mission. This work continues to gather pace in 2017/18.

Building sustainable partnershipsWe need to continue to build relationships with partners in the sight loss sector and beyond. As always, volunteers will play a fundamental role in what we do. To make their contribution even more effective, we want to create and facilitate greater UK-wide volunteer input through our new networks.

Meeting the legislative and fundraising challenges Every charity faces very similar challenges. We’ll continue to meet them head on, along with our legislative obligations, which will soon include the new GDPR regulations. We review and adapt our fundraising portfolio on an on-going basis so our fundraising revenue streams are always responsive, efficient and effective in these turbulent times.

Building a scalable, sustainable modelEverything we do is designed to create a scalable and sustainable model that puts customers at the heart of what we do. We’re confident that once all these changes are in place, we’ll be in a strong financial position for the next 150 years of supporting people with sight loss.

Objectives for 2017/18:

Increase the number of people with sight loss who volunteer for us to 25 percent of all our volunteers;

Deliver all our financial targets including raising £49.8 million net income through fundraising;

Deliver the requirements of the new General Data Protection Regulations (GDPR);

Invest in one organisational wide CRM system to support a seamless customer journey through our newly merged organisation and better manage our partner relationships;

To exceed the UK average of all the Charity Pulse staff engagement scores or increase the engagement scores by a minimum 3 percent.

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Financial review

This year has been one of great change in the finances of RNIB. We have acted to arrest the decline in our cash and free reserves position by agreeing and implementing a Financial Transformation Plan, which has resulted in substantial change in how we manage and use our money.

The financial outcomes of these changes do not yet show in the results outlined in this report: the changes will be delivered over the two years to March 2019. This plan is wholly aligned with the broader plan to transform RNIB, meaning that investment in transforming people, process and technology will be geared to support financial stability and vice versa – a virtuous cycle.

At the heart of the plan is a detailed and relentless focus on cash management, to ensure that we can generate cash sustainably without having to sell assets to do so. This includes a minimum cash target which is risk based and designed to cushion us from short term income risks. We have also refinanced with additional unsecured facilities (replacing secured), to bridge the two-year period during which we will be focusing on cost reduction and delivering a sustainable operating cashflow. We are focussing on debt recovery and ensuring that asset sales are prioritised to generate cash and not to finance operating costs.

This plan does entail substantial cost reductions, some of which we have already achieved. We aim to minimise the impact on staff wherever possible in these changes but we do need to continue to manage our costs in line with the overall reshaping of RNIB. We continue to focus relentlessly on non-staff cost reduction and to ensure that we are working as efficiently and cost-effectively as possible.

Overview of Financial Performance

The overall operating deficit for the year is £12.6million (2016: £9.3million deficit). This is a disappointing result, and below our planned deficit of £8.8million. However, £4.3million of this deficit relates to one-off costs relating to property transactions and reorganisation costs, resulting in an underlying deficit of £8.3million.

Significant steps have been taken to reduce costs in recent months, the full impact of which will be seen in the 2017/18 accounts.

Our cash holdings increased slightly to £5million and free reserves are below target at £14.3million.

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Income

Group income has increased by £4.7million (or 4.1 percent) to £119.2million (2016: £114.5million). This is mainly due to significant increases in legacy income (up £4.3m).

In 2016/17, 61 percent (2016: 59 percent) of our overall income came from fundraising activity.

Donations increased slightly by 1.6 percent to £30.9million (2016: £30.4million) and Legacy income increased by 11.6 percent to £41.7million (2016: £37.4million). We are delighted that this was a record legacy income performance for RNIB.

Expenditure

Group expenditure was split between supporting our four strategic priorities of Being There (7 percent) (2016: 5 percent), Independence (65 percent) (2016: 66 percent), Inclusion (9 percent) (2016: 9 percent) and Prevention (1 percent) (2016: 1 percent). In addition, we spent 18 percent of group expenditure (2016: 18 percent) on raising funds to ensure our future financial sustainability.

Group expenditure as a whole has increased by £9.8million (or 7.9 percent) to £132.8million (2016: £123.1million) with £8million of the increase spent on charitable activities. What we did with these resources is explained in “Our work in 2016/17” earlier in this report. The costs of raising funds increased by 7.4 percent to £24.4million (2016: £22.7million), reflecting our vital investment in the long term financial sustainability of RNIB.

A full analysis of group expenditure is shown in note 4 and the allocation of support costs in note 5.

Subsidiary Entities

RNIB’s operational subsidiary charities are RNIB Charity, Action, CIB, RNIB Specialist Learning Trust and BucksVision (subsidiary of Action). These charities contributed total external income of £35.7million (2016 £40.1million), almost all of which relates to charitable activities. This amount excludes the intra-group grants shown in note 3.

The two active trading entities of the Group (RNIB Enterprises Limited and RNIB Services Limited) contributed £143,000 (2016: £274,000) to the RNIB Group through gift aid and share of profit.

The full results of all subsidiary entities are shown in note 3.

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Balance Sheet and Cash flow

Overall net assets have decreased from £106.7million to £77.6million, due mainly to the actuarial loss on pension schemes and reduction in investments.

Intangible assets have increased from £1.4million to £3million due to some significant investments in infrastructure software. Group investments have decreased from £15.7million to £6.8million as the remaining liquid investment portfolio was sold to ensure that we remained financially sustainable and able to deliver the strategy. The remaining investments relate to endowment and restricted funds. Further details of the investment policy are included on page 23 below.

The increase in accrued legacies together with an increase in trade debtors has resulted in a significant increase in the year end debtor position by £1.5million. The £2.9million (2016: £5million) increase in short term creditors is largely due to an increase in short term loans.

Cash has increased slightly from £4.3million to £5million over the year, but cash flow has been supported by sales of investments and short term borrowing, which has funded the operating deficit and strategic investments. This situation cannot continue so Trustees have agreed a Financial Transformation Plan (detailed on page 19) in order to improve the financial sustainability of the Group within the next two years. This plan incorporates further cost reductions to achieve underlying and sustainable operational surpluses and cash generation. This cash generated, together with further asset sales, will be used to pay down short term debt and improve the reserves position to within the target range. The plan has also built a cash target into the reserves policy to ensure that cash is managed appropriately for the long term.

Pensions

RNIB Group has a large number of pension schemes which are detailed in note 23. The accounts show a significant actuarial loss on the main scheme of £16.8 million (2016: £3.9 million) as the actuarial valuation for accounting purposes has moved from surplus to deficit. This is mostly due to factors outside our control including a significant decrease in the discount rate used to value the scheme liabilities (influenced by wider macro-economic conditions) and an increase in inflation. No additional cash payments result from this accounting valuation. However, the actuarial valuation as at 31 March 2017 is likely to result in increased cash liabilities into the future (due to a combination of similar factors), which we have accounted for in our future budgets. This outcome is still under negotiation with Pension Trustees.

A full disclosure of the all schemes is shown in note 23.

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Reserves policy

General reserves disclosed in the Group balance sheet at the end of the year stood at £14.3million (2016: £22.8million). However, the combined general reserves of RNIB and Action amount to £14.6million (RNIB: £14.3million; Action: £0.3million), which is lower than required by our reserves policy (see below).

RNIB Group’s reserves policy focuses on the level of general reserves. General reserves exclude restricted funds and designated funds, which include the net book value of land and buildings occupied by RNIB services and activities. The assessment of general reserves excludes any surplus or deficit reported on the pension scheme.

The recommended general reserves level is calculated annually as part of the budget process, on the basis of the financial impact of the current risks facing RNIB Group. The reserves policy is reviewed annually by the Trustees.

RNIB Group seeks to maintain general reserves within RNIB, RNIB Charity and Action, to manage the risks to which RNIB Group is exposed in the course of its business, including, but not limited to, safeguarding against volatile income, both voluntary and service.

The Trustees wish to operate in the range of £18.3million to £27.5million for the combined general reserves based on the current analysis of risk. RNIB Group’s combined general reserves were £14.6million (RNIB: £14.3million; Action £0.3million) at 31 March 2017 (2016: £27.8million; RNIB: £22.8million; Action £5.0million). The Trustees have agreed upon a Financial Transformation Plan (detailed on page 19) which is moving the Group to a financially sustainable position and thus will boost free reserves to within the reserves policy range during the next two years. Part of this plan is a target for a proportion of reserves to be held as cash. The current target is for cash plus available banking facilities to be £9million. At the year-end the figure was £7.7million.

The actuarial valuations of RNIB Group Pension Schemes at 31 March 2017 for the purposes of FRS102 showed a net deficit of £12.5million (2016: £4.6million surplus), which is deducted from the level of general reserves as required by FRS102. The corresponding liability does not result in an immediate cash flow impact on RNIB. Contributions to the scheme are met through planned income.

At 31 March 2017, RNIB held designated funds totalling £45.9million (2016: £43.0million). Of this, £40.9million (2016: £40.4million) relates to properties and £5.0million (2016: £2.6million) relates to other fixed assets. Both of these are used directly in undertaking RNIB’s objectives. The fund definitions and full details of in-year movements can be found within note 21.

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Where restricted fund balances are in a deficit situation, and unless these will be covered by forthcoming receipts, the deficit balances are charged to general funds. Such balances in 2017 amounted to £148,000 (2016: £104,000), all of which are to be covered by forthcoming receipts.

Going concern

Although financial performance over the last two years has not been as planned, Trustees have recognised and are addressing this and have agreed a Financial Transformation Plan for the next two years: a renewed focus on strong financial management which is focussing on cash flow and cost control, new financing facilities and better communications and engagement of internal stakeholders from top to bottom.

We are part way through this period of extensive change which has been refreshed by new leadership during 2016 and early 2017, resulting in new impetus and focus. Significant cost reductions have occurred and more are planned as we take the necessary action to restore RNIB to financial sustainability. Some asset sales are planned in the short term to provide the more immediate cash boost which gives us the space to make these changes to bring costs in line with income.

Against this backdrop, Trustees and management continue to monitor and review the financial position of the Group, including its current liquidity position, forecast cash flows and available financing facilities for the next two years. Key financial risks have been identified and assumptions tested with different scenarios.

The combination of additional short term financing facilities together with asset sales ensures that our financial commitments can be met, and robust procedures are in place to quickly identify and remedy underperformance. In addition, we have a robust property-backed balance sheet which is relatively unencumbered with debt, which would allow further borrowing if required.

Longer term, we are putting in place clearer and more robust medium and long term financial plans which will allow our strategic goals to be achieved within our financial constraints.

Consequently, the Trustees believe that there are adequate resources to continue for the foreseeable future, and hence the financial statements are drawn up on the going concern basis.

Investment policy

Statement of investment principlesInvestment decisions are taken on the advice of the Investment Committee, whose members have a finance, investment or commercial background.

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RNIB’s investment policy is to hold assets to achieve an appropriate return with an appropriate level of risk when considered alongside RNIB’s business plan and level of reserves. It has three investment objectives:

to invest prudently – the basic investment strategy of RNIB has been to invest in a way that the minimum level of reserves is very likely to remain covered, but with some investment risk being taken on the assets over and above this minimum level

to invest in liquid assets – RNIB could call upon its quoted investments at any point. It should be straightforward to sell RNIB’s assets down to cash, and doing so should result in the cash being available quickly and without the potential for significant adverse impact on the value of investments

to invest ethically – RNIB wishes to avoid unethical investments, and in particular tobacco stocks due to the link between smoking and certain conditions that result in sight loss.

The benchmark allocation for investments at the start of the financial year had been 20-30 percent in equities, 30-40 percent in bonds and 30-40 percent in cash. This strategy had been developed with the advice of Hewitt Associates and had considered the nature of RNIB’s business as reflected in its business plans. The investment strategy changed in line with the business plan approved by the Board in February 2016. The plan to liquidate RNIB’s long term investments and to invest in rolling short-term deposit accounts to meet the fluctuating working capital needs during 2016/17 was implemented during March and April 2016.

The Endowment Funds are managed by F&C. F&C fee structures are: Foreign & Colonial Responsible Sterling Bond Fund – 0.50 percent per

annum; Foreign & Colonial Responsible UK Income Fund – 0.75 percent per annum.

Included as a Group investment are £55,000 (2016: £48,000) relating to CIB and £12,408 (2016: £6,472,000) to Action.

RNIB Investment performanceThe Endowment funds in which the investments are held, are measured against agreed benchmark indices for each relevant holding.

Cash deposits are placed on behalf of the RNIB Group including the subsidiary Charities by their respective banking organisations.

At 31 March 2017, the Group’s cash and short-term deposits stood at £5.0million (2016: £4.3million). During the year, the group interest received on cash and short-term deposits was £1,029 (2016: £1,000) of which £1,029 (2016: £1,000) related to

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RNIB. RNIB’s short-term deposit income all relates to funds placed overnight and the average return made was 0.1 percent (2016: 0.1 percent).

At 31 March 2017, the unrealised gain on the Endowment Funds was £312,000 (2016: £156,000 loss) and the breakdown can be found in note 21.

The Elizabeth Eagle-Bott and Dr Duncan Leeds Funds are all held in both the F&C Responsible UK Income Fund and the F&C Responsible Sterling Bond Fund.

The Emma Nye Fund is held in the F&C Responsible UK Income Fund only.

The Bristol Blind and GDC Rushton Funds are held in the F&C Responsible Sterling Bond Fund only.

The Sunshine Fund is held in the F&C Responsible Sterling Bond Fund, F&C Responsible UK Income Fund and F&C Money Markets Fund only.

Remuneration policyWe use a range of different pay scales for employees on different terms and conditions. The great majority of employees (97.5 percent) are engaged on the RNIB pay framework.

A few employees are engaged on other terms: Further education – lecturers; Primary and Secondary Education – teachers; Other pay scales - staff who have transferred employment from other

organisations and who remain on their pay scales.

The RNIB pay framework comprises of 10 levels divided into three pay groups: Leadership Group; Management/Professional/Specialist Group; Support/Delivery Group.

Each pay group has a number of levels within it and each pay level has three pay positions to help manage progression connected to performance. All salaries are regularly benchmarked to ensure they are competitive.

Pay scales are increased annually by a cost of living award and individual employees are also eligible for a performance award if their performance is rated as outstanding following appraisal assessment.

The RNIB Group is led by the Executive Board consisting of the CEO and five group directors as identified in the who’s who section of this report. The total remuneration paid to this group was £1,288,361 (2016: £951,000). Of this, directors received £247,493 related to termination and loss of office payments. Senior management

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pay is determined by the Remuneration Committee, which is comprised of board trustees and independent members. Pay awards to this group are determined using the same policy as all other RNIB employees.

Fundraising review

Principal Fundraising Activities and Performance

RNIB has a diverse supporter base and receives donations through a variety of fundraising channels as follows:

Legacies: Income from legacies, where supporters leave us a gift in their will represents the largest proportion of our voluntary income at £41.7million (2016: £37.4million).

Individual giving: We receive Individual donations through our raffles, lottery, and appeals. Investment in this area generates a longer term sustainable income stream which is vital to fund our work. We have invested an additional £6million in this area since 2015 and are now starting to see growth in our income. Income was £25.0million (2016: £23.1million).

Corporates, Trusts, Major Gifts and Statutory: We also receive a number of high value gifts from Charitable Trusts and Companies and Individuals that support specific events and/or projects. Income was £8.9million (2016: £8.9million), of which £4.9million (2016: £4.1million) is accounted for within charitable activities.

Community: We have a fundraising team based in the community who raise funds via local volunteers and local and national events. Income was £1.9million (2016: £2.2million).

In total, fundraising income amounted to £77.5million (2016: £71.6million). The increase compared to last financial year is due to some higher value legacies and growth in our donations from individuals. We are pleased to have achieved this against the background of the external economic climate and a challenging media environment.

Fundraising costs amounted to £24.4million (2016: £22.7million). The fundraising costs are net of an internal recharge to the sum of £4.6million (2016: £5.4million) for cost incurred in raising public awareness regarding sight loss. These costs have been included within the cost of ‘Charitable activities’. Our investment in fundraising is vital to sustaining our income and our ability to plan and fund direct services, but we remain focused on driving efficiencies and reducing costs where possible.

Fundraising Controls and Regulation

We are very aware that our fundraising success is dependent on maintaining the trust of our donors and the public. We have a number of controls in place to ensure

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that our fundraising remains ethical, transparent and compliant with both current regulation and public expectation.

Our Board of Trustees play an active role in our fundraising activities, and we have a Fundraising Committee of Trustees that meets to have a regular ‘deep dive’ on each area of fundraising, reviews fundraising plans and their effectiveness and ensures that fundraising activity operates in line with regulatory requirements and all relevant best practice.

In addition, our Audit and Risk Committee provides independent scrutiny of fundraising control and regulation, through regular reviews from our internal auditors.

We have an Ethical Fundraising Policy which ensures that we only receive donations from individuals and organisations whose aims and objectives are compatible with our own. All of our fundraisers receive compulsory training in this area.

Use of Agencies and Third Parties

We work with a number of external agencies to fundraise on our behalf. These agencies are contracted to carry out a range of fundraising activities including door to door, telephone fundraising, and private site fundraising. We have made great strides during the past year, in making improvements to our contracts with these agencies and further developing our monitoring systems. We have developed a compliance framework which enables us to carry out regular mystery shopping, call monitoring and other quality checks on all of our activities. We have reviewed all contracts with agencies and third parties.

All of our third-party agencies are required contractually to follow the Codes of Conduct and Codes of Practice put in place by the Fundraising Regulator, the Institute of Fundraising and the Charity Commission.

Despite these efforts, during the year we experienced some fraudulent activity conducted by employees of one of our third party face-to-face fundraising agencies. We have ceased the contract with the agency concerned and have conducted a full review of our processes to ensure that any lessons can be learned. This incident is part of an ongoing investigation at the time of this report and has been reported to the Fundraising Regulator, the ICO, the Charity Commission and the Police.

In addition, a complaint was raised with the Fundraising Regulator regarding activities of a third party face-to-face fundraising agency. The Fundraising Regulator adjudicated on the complaint and found that we had not done enough mystery shopping of our fundraisers or appropriate welcome calls. These items have subsequently been addressed with the appointment of a third-party mystery

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shopping agency and increased call listening of our welcome calls. These changes were recognised by the Regulator.

Vulnerable People

We have had a vulnerable people policy for fundraising activity in place for some time. All of our staff are made aware of this policy and are trained in how to identify a potentially vulnerable person and the actions they should take to disengage from a fundraising activity. All our third-party agencies are required to adhere to this policy.

Complaints

We take all complaints very seriously and report on this on a weekly basis. Complaints reporting is a key part of our organisational dashboard. We will respond to each complaint within two working days.

The number of complaints we received during 2016/17 regarding Fundraising agencies totalled 482. As a proportion of direct debit sign-ups from donors, this is 0.02 percent.

Our Commitment

We are absolutely committed to continually improve the standards we achieve with our relationships with supporters and the public. We ensure that anyone involved in our fundraising activities is aware of our requirement to live by our Fundraising Promise:

We are committed to high standards We do all we can to ensure that fundraisers, volunteers and fundraising

contractors working with us to raise funds comply with the Codes and with this promise.

We comply with the law including those that apply to data protection, health and safety and the environment.

We are honest and open We tell the truth and do not exaggerate. We do what we say we are going to. We answer all reasonable questions about our fundraising activities and costs.

We are clear We are clear about who we are, what we do and how your gift is used. Where we have a promotional agreement with a commercial company, we make

clear how much of the purchase price we receive. We give a clear explanation of how you can make a gift and amend a regular

commitment.

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We are respectful We respect the rights, dignities and privacy of our supporters and beneficiaries. We will not put undue pressure on you to make a gift and if you do not want to

give or wish to cease giving, we will respect your decision. If you tell us that you don’t want us to contact you in a particular way we will not

do so.

We are fair and reasonable We take care not to use any images or words that cause unjustifiable distress or

offence. We take care not to cause unreasonable nuisance or disruption.

We are accountable We respect the rights, dignities and privacy of our supporters and beneficiaries. If you are unhappy with anything we’ve done whilst fundraising, you can contact

us to make a complaint. We have a complaint procedure, a copy of which is available on request. If we

cannot resolve your complaint, we accept the authority of the Fundraising Regulator to make a final adjudication.

We are very grateful for the continued support through legacies, gifts and donations, as well as the work of our many volunteers, which allows the vital work of RNIB to continue.

Principal Risks and Uncertainties

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

Governance of the Group’s risk management ultimately sits with the Board of Trustees, with detailed consideration of risk delegated to Audit and Risk Committee. The Executive Board oversees the management of risks and reports to the Audit and Risk Committee three times a year.

Our risk management approach details the structures and processes that have been put in place, as well as the key roles and responsibilities for successful risk management.

There are now seven key strategic risks. Six of these are those previously identified, the seventh (risk 7 below) has been added to reflect the scale of change being undertaken in RNIB right now.

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The key risks are summarised below, together with the mitigations on each.

1. Financial risk Financial risk caused by cash shortages, long term income reduction, financial control failure and increasing pension costs.

The main mitigations in place are cost reduction and increasing income; improved budgeting and forecasting; accurate and frequent cash flow forecasting; sensitivity and scenario analysis; greater internal transparency of our finances; new financing facilities and improved credit control.

2. Changes in the external environment Changes in the external environment result in inability to meet customer demand or failure to respond to regulatory changes.

The main mitigations in place are horizon scanning and an increased focus on compliance (particularly information governance and security).

3. People capability and capacity People capability and capacity issues stemming from recruitment and retention, leadership, change or cultural issues.

The main mitigations in place are regular benchmarking or review of reward packages; adoption of a clear change methodology; leadership development training and a focus on annual appraisals.

4. IT and digital infrastructure IT and digital infrastructure issues caused by outdated infrastructure or system failure.

The main mitigations in place are investment in our IT change programme and replacement and/or integration of outdated systems.

5. Governance and business processes Governance and business processes cause duplication, inefficiency or failure to properly oversee change programmes.

The main mitigations in place are a new simplified governance structure; a focus on single accountabilities and use of an established change management methodology.

6. Brand and reputation Brand and reputation declines or suffers through lack of investment or major incident.

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The main mitigations in place are a proposed investment in brand together with a greater focus in the new structure; and a continued focus on compliance with robust organisational structures.

7. Delivery of change Delivery of change is not effective caused by failure to deliver; lack of strategic focus.

The main mitigations in place are a clear service delivery model; regular internal communications; an internal change champions network and a focus on our customers and the beneficiaries of change.

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

Exposure to price, credit, liquidity and cash flow risk

Price risk for RNIB Group arises because of changes in unit trust and equity prices. Listed investments with a fair value of £6.0million (2016: £15.8million) are exposed to price risk, but this exposure is actively managed through our investment policy.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. RNIB Group policies are aimed at minimising such losses, and require that credit terms are only granted to customers who demonstrate an appropriate payment history and/or satisfy credit worthiness procedures. Details of RNIB Group debtors are shown in note 17 to the financial statements.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. RNIB Group aims to mitigate liquidity risk by managing cash generation by its operations, applying cash collection targets throughout the group. The group also manages liquidity risk via revolving credit facilities and long term debt.

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a risk associated with a recognised asset or liability, such as future interest payments on a variable rate debt. RNIB Group manages this risk, where significant, by use of interest rate swaps.

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Employee Engagement

Our volunteersDuring the course of the year we’ve had 5,000 active volunteers (2016: 5,149) in 6,454 roles.

The numbers have fluctuated during the year and we have had some service closures which have impacted on volunteer numbers although we have seen a growth in some areas. We will be working with our new structures to put plans in place to ensure that RNIB can:

Involve volunteers more broadly in our work. Involve skilled volunteers by focused and targeted recruitment for different

demographics, professions or skills Look at ways to further measure the impact of volunteers. The review of our team has led to the introduction of a simplified and focused structure.

In order to recruit more volunteers and provide a better experience for applicants we have reviewed our recruitment processes and set up a new volunteering recruitment team.

Our volunteering engagement and support team will work closely with the volunteering recruitment team, providing all teams with the tools and support from the team to enable them to develop and introduce volunteer roles or programmes. This team will develop all areas of volunteering engagement and support for the whole of the RNIB Group.

We’ve looked at ways to improve our communication with volunteer managers and staff over the last year and have introduced a volunteer manager e-news update and volunteer update, both of which are sent out every two months. We will be trialling Workplace for volunteers during Volunteers’ Week as another communication channel between staff and volunteers.

Employing disabled peopleRNIB is a disability charity working to support people with sight loss. We seek to support all our staff that have a disability, regardless of its cause.

RNIB has five values which underpin everything that we do. Two of these specifically refer to people with disabilities. They are:

Led by blind and partially sighted people – blind and partially sighted people are at the heart of everything we do

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Inclusive – we include and value people with diverse experience, abilities and backgrounds.

RNIB makes sure that we comply with the Equality Act (Disability Discrimination Act in Northern Ireland) and seek to make reasonable adjustments wherever possible to enable people with differing disabilities to work for us. This includes providing training opportunities that allow our disabled colleagues to flourish, and our sighted colleagues to gain a greater understanding of sight loss inspiring their own development and understanding. We also lead the way in helping other employers see the benefits in employing blind or partially sighted people.

As a sight loss charity, we ensure all blind and partially sighted applicants who meet the minimum requirements for the role are automatically offered an interview, and given constructive feedback if they are unsuccessful. In addition, where there are two equally matched applicants, one of whom is blind or partially sighted and one is not, the role is then offered to the applicant who is blind or partially sighted.

Currently, 11.6 percent of our employees tell us that they have a disability. Through dedicated resources in our IT team, we are able to provide specialist advice and support to ensure that disabled staff have the appropriate equipment and training to perform effectively.

RNIB also operates a trainee scheme to provide work opportunities for blind and partially sighted people, and these have been successful in providing a route to permanent employment both within and outside RNIB. Furthermore, RNIB is setting up an apprenticeship programme for people with sight loss to work in the organisation which will be launched in September 2017.

Engagement with staff RNIB has a number of mechanisms for engaging with staff and seeking their views, both formal and informal. We have a recognition agreement with the unions – Unite and UNISON – which give them collective bargaining rights over certain terms and conditions of employment. We currently have ten staff union representatives.

RNIB has been recognised as Disability confident for the whole group. This scheme replaces the Two Ticks scheme and aims to help organisations successfully employ and retain people with disabilities and those with health conditions.

We continuously strive to find new and innovative ways to engage with staff. In June 2016, we were the first UK disability charity to roll out the social enterprise tool – Workplace by Facebook across the organisation. Workplace has improved the way the organisation, teams and staff communicate, and transformed how we engage with each other, share information and exchange ideas – allowing us to build organisational knowledge.

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We also have a staff forum led by an elected Staff Forum Chair. Staff forum representatives meet at a site, regional and national level to discuss areas that are specifically of interest to staff. They represent the views of teams on topics as diverse as finance to working patterns, strategy to new HR systems. This year, staff reps were consulted on staff appraisals, following their feedback we have simplified the appraisal process.

The staff survey held in early 2017 showed favourable results when benchmarked against the charity sector averages, with 82 percent of staff agreeing that they feel like they are making a difference, 82 percent of staff agreeing that their manager is a good person to work for, and 80 percent of staff understanding the aims of the charity.

Health, safety, environment and compliance

To ensure a more rigorous and coordinated approach to compliance is taken, a new Business Support and Compliance team has been established. This combines Health, Safety, Fire and Environment with other compliance areas including Safeguarding, Information Governance, Information Security, Legal and Audit. This new team will deliver a stronger coordinated approach to compliance and risk management, with the ability to undertake combined initiatives and monitoring. This will deliver a streamlined, cohesive and efficient service to RNIB managers.

We are firmly committed to ensuring the safety and health of our people and all those with whom we come into contact. We are also committed to achieving our goals of environmental sustainability, through the continued development of our safety, health, fire and environmental (HSFE) management systems.

The governance of health, safety, fire and environment was significantly enhanced during 2016 with further developments to, and efficiencies in, our management systems for health and safety and fire safety. A new Health and Safety Strategy, incorporating an H&S Action Plan and Key Performance Indicators, was approved by the Trustees, and a new risk register for HSFE produced. A register of all risk assessments has been collated, and this along with risks identified during fire risk assessments and health and safety audits are now tracked and monitored on a quarterly basis to ensure prompt mitigation. A network of Responsible Persons, with responsibility for overseeing HSFE has been established for all RNIB premises.

Environmental impactIn the last 12 months RNIB has continued to make improvements to its arrangements for the monitoring of, and reduction in, energy usage based on finding of the audits carried out under the Energy Saving Opportunity Scheme (ESOS). This has achieved a decrease of 1 percent in energy use in the last 12 months. Moving forward, savings in transport costs will be achieved by adopting alternative

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technologies for hosting meetings and undertaking some training, such as by telephone and video conferencing and webinars.

Health and happinessThrough early interventions and pro-active assistance, we have seen a reduction in the number of workdays lost per person from 10.8 to 6.04 days; a level that is below the average for our sector of 7.0 working days lost per person each year.Health and wellbeing benefits available to staff continue to be reviewed and updated, with the aim of reducing sickness absence levels and encouraging healthy lifestyles.

The Trustees’ report, including the strategic report, was approved by the Board of Trustees, and authorised for issue on 28 September 2017.

Kevin Carey, Chair Alan Tinger, Treasurer

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Independent auditors’ report to the Trustees of Royal National Institute of Blind People

Report on the financial statements

Our opinionIn our opinion, Royal National Institute of Blind People’s Group financial statements and parent charity financial statements (the “financial statements”): give a true and fair view of the state of the group’s and of the parent charity’s

affairs as at 31 March 2017 and of the Group’s incoming resources and application of resources and of 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 Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and regulation 15 of The Charities (Accounts and Reports) Regulations 2008.

What we have auditedThe financial statements, included within the RNIB Group annual report and accounts (the “Trustees’ Report”), comprise: the Group and RNIB Balance sheets as at 31 March 2017; the Group statement of financial activities for the year then ended; the Group cash flow statement for the year then ended; the notes to the financial statements, which include a summary of significant

accounting policies and other explanatory information.The financial reporting framework that has been applied in the preparation of the financial statements is United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice).

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.

Other matters on which we are required to report by exception

Sufficiency of accounting records and information and explanations receivedUnder the Charities Accounts (Scotland) Regulations 2006 (as amended) and Charities Act 2011 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 sufficient accounting records have not been kept by the parent charity; or

36

the parent charity financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Other information in the Trustees’ Report

Under the Charities Accounts (Scotland) Regulations 2006 (as amended) and Charities Act 2011 we are required to report to you if, in our opinion the information given in the Trustees’ Report is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the audit

Our responsibilities and those of the trusteesAs explained more fully in the Statement of Trustees’ responsibilities, 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 International Standards on Auditing (UK and Ireland) (“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 Trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 144 of the Charities Act 2011 and regulations made under those Acts (regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and Regulation 30 of The Charities (Accounts and Reports) Regulations 2008) 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.What an audit of financial statements involvesWe conducted our audit in accordance with 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

charity’s circumstances and have been consistently applied and adequately disclosed;

the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. We primarily focus our work in these areas by assessing the trustees’ judgements against available evidence, forming our own judgements, and evaluating the disclosures in the financial statements.

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We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both. In addition, we read all the financial and non-financial information in the Trustees’ 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.

PricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsLondon28 September 2017PricewaterhouseCoopers LLP is eligible to act, and has been appointed, as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and section 144(2) of the Charities Act 2011.

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Group statement of financial activities for the year ended 31 March 20172017 2017 2017 2017 2016 2016 2016 2016

Notes Unrestricted funds£’000

Restricted funds£’000

Endowment funds£’000

Total

£’000

Unrestricted funds

(Reclassified)£’000

Restricted funds£’000

Endowment funds£’000

Total(Reclassified)

£’000

Income and Endowments from:Donations 24,715 6,152 - 30,867 27,848 2,536 - 30,384Legacies 37,562 4,168 - 41,730 31,746 5,650 - 37,396

Charitable activities:Being there 67 2,095 - 2,162 65 1,564 - 1,629Independence 4,369 30,889 - 35,258 392 38,209 - 38,601Inclusion 2,266 6,103 - 8,369 87 5,307 - 5,394Prevention 18 240 - 258 7 97 - 104Total Income from charitable activities: 6,720 39,327 - 46,047 551 45177 2016 45,728

Investment income 2 8 221 - 229 94 363 - 457Other income 326 - - 326 485 - - 485

Total income and endowments 69,331 49,868 - 119,199 60,724 53,726 - 114,450

Expenditure on:Raising funds 4/5/6 24,367 6 - 24,373 22,361 340 - 22,701

Charitable activities:Being there 4/5/6 5,858 3,020 - 8,878 4,553 2,057 - 6,610Independence 4/5/6 36,174 49,951 - 86,125 35,033 45,630 - 80,663

Expenditure on:

39

2017 2017 2017 2017 2016 2016 2016 2016Notes Unrestricted

funds£’000

Restricted funds£’000

Endowment funds£’000

Total

£’000

Unrestricted funds

(Reclassified)£’000

Restricted funds£’000

Endowment funds£’000

Total(Reclassified)

£’000

Inclusion 4/5/6 9,033 2,949 - 11,982 5,852 5,765 - 11,617Prevention 4/5/6 1,159 308 - 1,467 1,027 438 - 1,465Total expenditure on charitable activities:

52,224 56,228 - 108,452 6879 6203 4032 13082

Total expenditure 76,591 56,234 - 132,825 68,826 54,230 - 123,056

Net gains/(losses) on investments 14 142 557 312 1,011 (252) (269) (156) (677)

Net (expenditure)/income (7,118) (5,809) 312 (12,615) (8,354) (773) (156) (9,283)

Transfers between funds 720 (720) - - 59 (40) (19) -

Other recognised gains/(losses):Net gains on interest rate swap 280 - - 280 118 - - 118Actuarial (loss)/gain on defined benefit pension scheme

23(16,259) (491) - (16,750) (3,945) 1,230 - (2,715)

Net movement in funds (22,377) (7,020) 312 (29,085) (12,122) 417 (175) (11,880)

Reconciliation of fundsTotal funds brought forward 73,386 27,718 5,559 106,663 85,508 27,301 5,734 118,543

Total funds carried forward 51,009 20,698 5,871 77,578 73,386 27,718 5,559 106,663

The Statement of Financial activities includes all gains and losses recognised in the year. Total income of RNIB during the year, including investment gains/losses was £78,496,000 (2016: £72,921,000) less resources expended of £84,652,000 (2016: £81,739,000) led to a deficit of £6,156,000 (2016: deficit of £8,818,000). All income, expenditure and resulting net movements in funds are derived from continuing activities. The Isle of Man government require that

40

we disclose the income and expenditure in the Isle of Man which amounted to £143,000 (2016: £59,000) and £197,000 (2016: £58,000) respectively. The notes that follow form part of the financial statements.

Income and expenditure through our subsidiary charities – Action for Blind People, BucksVision, RNIB Charity, CIB and RNIB Specialist Learning Trust – are treated as restricted as these funds relate to the specific services provided by each entity.

The 2016 figures have been reclassified in respect of £332,000 of income relating to RNIB Enterprises, which previously was included within other trading activities and is now included within income from charitable activities. There is no net effect on net income/(expenditure) from this change.

41

Group and RNIB balance sheets as at 31 March 2017Notes Group 2017

£’000 Group 2016

£’000Reclassified

RNIB 2017£’000

RNIB 2016£’000

ReclassifiedFixed assets

Tangible assets 12 88,505 91,027 69,597 71,423Intangible assets 13 3,142 1,400 3,142 1,400Investments 14 6,812 15,735 6,750 9,220

Total fixed assets 98,459 108162 79,489 82,043

Current assetsStocks and work in progress 15 1,856 1,342 369 -Debtors due within one year 16 31,263 29,745 41,280 31,592Investments 14 96 45 - -Cash at bank and in hand 5,002 4,272 2,419 2,038

Total current assets 38,217 35,404 44,068 33,630

Creditors: amounts falling due within one year 17 20,099 17,243 28,862 16,571

Net current assets 18,118 18,161 15,206 17,059

Total assets less current liabilities 116,577 126,323 94,695 99,102

Creditors: amounts falling due after one year 18 21,960 23,270 21,959 23,049Provisions for liabilities and charges 19 4,543 994 3,088 994

Net assets excluding pension asset 90,074 102,059 69,648 75,059

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Notes Group 2017£’000

Group 2016£’000

Reclassified

RNIB 2017£’000

RNIB 2016£’000

ReclassifiedDefined benefit pension (liability)/asset 23 (12,496) 4,604 (9,162) 7,562

Net assets including pension liability/asset 77,578 106,663 60,486 82,621

The funds of the Group/RNIB:Endowment funds 21 5,871 5,559 5,870 5,558Restricted income funds 21 20,698 27,718 3,607 3,677

Unrestricted income funds:Designated 21 45,866 43,014 45,866 43,014General 21 14,305 22,810 14,305 22,810Pension reserve 21/23 (9,162) 7,562 (9,162) 7,562

Total unrestricted income funds 51,009 73,386 51,009 73,386

Total Group/RNIB funds 77,578 106,663 60,486 82,621

The 2016 figures have been reclassified to transfer £994,000 previously included within creditors due within one year to provisions for liabilities and charges.

These financial statements were approved by the Board of Trustees on 28 September 2017 and signed on behalf of RNIB by Kevin Carey, Chair, and Alan Tinger, Honorary Treasurer.

Kevin Carey, Chair Alan Tinger, Treasurer

43

Group cash flow statement for the year ended 31 March 2017Note 2017

£’000 2016£’000

Net cash used in operating activities A (6,051) (8,569)

Cash flows from investing activitiesInvestment income 229 457Purchase of fixed assets (5,295) (3,003)Proceeds from sale of tangible fixed assets 509 5Purchase of investments (75) (202)Proceeds from sale of investments 9,958 8,585Proceeds from sale of property held for sale - 459Net cash provided by investing activities 5,326 6,301

Cash flows from financing activitiesRepayments of borrowing (2,503) (1,015)Cash inflows from new borrowing 4,000 4,265Net cash provided by financing activities 1,497 3,250

Net increase in cash and cash equivalents in the reporting period B 772 982Cash and cash equivalents at the beginning of the reporting period B 4,230 3,248Cash and cash equivalents at the end of the reporting period 5,002 4,230

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Notes to the cash flow statementA. Reconciliation of net income to net cash outflow from operating activities

2017£’000

2016£’000

Net expenditure for the reporting period before transfers (12,615) (9,283)Adjustments for:Investment income (229) (457)Depreciation 3,377 3,827Amortisation 562 -Impairment of tangible fixed assets 2,095 -Investment management fees charged to portfolio - 27Loss on disposal of tangible fixed assets 31 79(Gain)/loss on investments (1,011) 677(Decrease)/increase in current creditors (126) 1,232(Decrease)/increase in long term creditors (2) 215Increase in provisions for liabilities and charges 3,549 -Increase in pension provision 350 396(Decrease) in non-controlling interest - (7)Increase in debtors (1,518) (4,984)Increase in stock (514) (291)Net cash outflow from operating activities (6,051) (8,569)B. Analysis of change in net debt 1 April

2015£’000

Cash flow 2015/16

£’000

31 March 2016

£’000

Cash flow 2016/17

£’000

31 March 2017

£’000Cash at bank 3,253 1,019 4,272 730 5,002Bank overdraft (5) (37) (42) 42 -Total cash and cash equivalents 3,248 982 4,230 772 5,002Debt due within one year (1,000) (3,848) (4,848) (2,581) (7,429)Debt due after one year (19,000) 598 (18,402) 1,084 (17,318)Total change in net debt (16,752) (2,268) (19,020) (725) (19,745)

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Notes to the financial statements for the year ended 31 March 2017

1. Accounting policiesThe principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of these financial statements are as set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

1.1 Basis of preparationThese consolidated and separate financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also conform to the requirements of the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. No separate Statement of Financial Activities (SOFA) has been presented for the Charity alone as permitted by the Charities SORP (FRS 102).

1.2 Going ConcernThe Group meet’s it’s day-to-day financing requirements through a combination of cash generated by operations and banking facilities. Cash levels have been supported by asset sales over the last few years so Trustees have agreed a Financial Transformation Plan for the next two years which focusses on cash flow management and cost control, supported by better communications and engagement of internal stakeholders from top to bottom.

Against this backdrop, Trustees and management continue to monitor and review the financial position of the Group, including its current liquidity position, forecast cash flows and available financing facilities for the next two years. The combination of additional short term financing facilities together with asset sales ensures that our financial commitments can be met, and robust procedures are in place to quickly identify and remedy underperformance. In addition, we have a robust property-backed balance sheet which is relatively unencumbered with debt, which would allow further borrowing if required.

46

Longer term, we are putting in place clearer and more robust medium and long term financial plans which will allow our strategic goals to be achieved within our financial constraints.

As described above and in the Trustees’ Report (on page 23), the Group’s forecasts and projections, taking account of reasonable possible changes in performance, show that the Group will have sufficient cash flows and reserves to adopt the going concern basis in preparing its financial statements.

1.3 Group financial statementsThe results of each of RNIB’s subsidiary undertakings, as listed in note 3, have been consolidated in these financial statements under the heading “Group” on a line-by-line basis, adopting uniform accounting policies. Their objectives contribute to those of the RNIB Group strategy and under the tests of control they are deemed to be charitable subsidiaries of RNIB.The net assets at the date of acquisition or merger are assessed on a fair value basis for the purposes of consolidation into the results for the RNIB Group. The results of the subsidiaries acquired during the year are included in the SoFA from the effective date of acquisition. The intra-group transactions, balances and unrealised profits are eliminated in full. No separate SoFA has been presented for RNIB alone as permitted by an administrative concession issued by the Charity Commission for England and Wales.

1.4 Foreign currency transactionsForeign currency transactions completed within the year are included at their transacted sterling equivalents. Monetary assets and liabilities are valued using those rates published by HM Revenue and Customs as at the balance sheet date. Any foreign exchange gains or losses are charged to the SoFA.

1.5 Fund accountingUnrestricted funds comprise accumulated surpluses and deficits on general funds that are available for use at the discretion of the Trustees in furtherance of the general objectives of RNIB.Designated funds are unrestricted funds that the Trustees of RNIB have set aside for a specific purpose. Within designated funds are “service properties” and “other fixed assets”. “Service properties” represents the value of RNIB’s interests in land and buildings, for the provision of services to people with sight problems. This value is shown in a separate designated fund,

47

as the properties represented are essential for the provision of RNIB’s services. Transfers in respect of additions to property in the year are made from the general fund. Transfers are made from this fund to the general fund in respect of property disposals during the year. Property depreciation is charged to this fund. “Other fixed assets” represents other assets in use by RNIB. The assets of subsidiary charities are held within the restricted funds.Restricted funds comprise income received with special conditions attached. Income for a specific purpose not spent in any year is carried forward in the relevant fund. Also within restricted funds are the results of the subsidiary charities, which are operating under narrower objectives than those of RNIB.Endowments received are credited directly to the relevant endowment fund. Income arising from the related investments is allocated to the general fund or to the relevant restricted fund, depending on the terms of endowment.

1.6 IncomeDonations are accounted for as soon as there is entitlement and the amount is measurable and receipt is probable. Donations include Gift Aid based on amounts recoverable at the accounting date. Donated goods and services are included at the point in time when they are received at the value to RNIB where these can be quantified. No amounts are included in these financial statements for the services donated by volunteers. Income from trading in subsidiary undertakings is transferred to RNIB by covenanting the profits of those undertakings. Pecuniary legacies are recognised on notification. Residuary legacies are recognised when probate is granted, a copy of the will has been received to confirm RNIB Group’s entitlement, and there is sufficient information to value them. In practice this is usually when the assets and liabilities statement is received. Reversionary interests involving a life tenant and contentious legacies are not recognised.Charitable income is recognised when it can be reliably measured, there is entitlement, and receipt is probable. Where charitable income is received in advance of the activity to be performed then the income is deferred.Income from the sale of goods and services is recognised when orders are fulfilled or services are delivered. Investment income, interest on deposits and income in connection with services to people with sight problems is recognised on an accruals basis. Investment income arising on endowment funds is credited to the appropriate fund in accordance with the prescribed conditions.Accrued income is provided for revenue that has been earned in the current financial year but is yet to be invoiced.

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1.7 Expenditure(a) Expenditure, including irrecoverable VAT, is accounted for on an accruals basis.(b) Included within charitable activity costs is an apportionment of public awareness expenditure representing the costs incurred by RNIB in educating the public to be aware of the needs of people with sight loss.(c) Support costs include both Group and corporate costs and are incurred in support of direct service expenditures. Support costs also include the governance costs incurred in relation to the running of RNIB and the charitable subsidiaries. The allocation of support costs is on a mixture of bases (see note 5).(d) Fundraising expenses include those costs incurred in raising donations and legacies.(e) Grants payable are charged to the SoFA when a constructive obligation exists: when the recipient has been informed.(f) Redundancy costs are recognised when there is a legal or constructive obligation (see note 8).

1.8 Tangible Fixed assetsTangible assets are recorded at cost, including irrecoverable VAT, or where donated, open market valuation at the time of donation. Individual items of expenditure below £5,000 are not capitalised across the RNIB Group.Depreciation is provided on all tangible fixed assets, except freehold land and assets under construction, at rates calculated to write off the cost on a straight-line basis over their expected useful lives. Where the assets have been acquired under a finance lease then depreciation, and any impairment, is provided at rates calculated to write off the cost, less estimated residual value of each asset, over the life of the primary lease. The standard rates of depreciation are as follows:Service propertiesFreehold buildings 50 years

Leasehold land and buildings – lease longer than 50 years 50 years

Leasehold land and buildings – lease shorter than 50 years Lease periodMachinery, vehicles and equipmentMotor vehicles; fixtures and fittings; equipment 5 years

Computer hardware 3 years

49

Fixed asset residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The effect of any change is recognised in the SoFA in the year in which it occurs. Fixed assets are also reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the statement of financial activities.

1.9 Intangible Fixed AssetsIntangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated and charged to the SoFA, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives, as follows:Software – 3 yearsWhere factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended in the year of change to reflect the new circumstances.Intangible assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Costs associated with maintaining computer software are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognised as intangible assets when the following criteria are met:

it is technically feasible to complete the software so that it will be available for use; management intends to complete the software and use or sell it; there is an ability to use or sell the software; it can be demonstrated how the software will generate probable future economic benefits; adequate technical, financial and other resources to complete the development and to use or sell the software are

available; and the expenditure attributable to the software during its development can be reliably measured.

Other development expenditures that do not meet these criteria are recognised as an expense as incurred. 50

1.10 InvestmentsListed investments are stated at market value, valued at their bid price, at the balance sheet date.Investment properties are stated at market value as advised by RNIB’s property advisers at the balance sheet date and this is done on an annual basis.The investment in subsidiary undertakings is at cost.The SoFA includes the net gains and losses arising on disposals and revaluations throughout the year.

1.11 StocksStocks of raw materials, consumables, work-in-progress, and finished goods are valued at the lower of cost and estimated selling price less costs to complete and sell. The cost of stock is calculated using the standard cost method on a first-in first-out basis. Finished goods for resale comprise products suitable for use by blind and partially sighted people. Provision is made to reduce carrying values for slow moving, obsolete and defective stock. Stocks are recognised as an expense in the period in which the related income is recognised.

1.12 DebtorsDebtors are stated after provision for impairment. Prepayments are valued at the amount prepaid. Where debtors are due after more than one year they are discounted for the time value of money where material.

1.13 Property held for saleIn accordance with the Charity SORP (FRS 102), land and property held for resale are disclosed separately within fixed assets at cost. Gains and losses on disposal are recognised at the point of sale.

1.14 Cash at bank and in handCash at bank and cash in hand includes cash, short term highly liquid investments with a maturity of three months or less and bank overdrafts. Bank overdrafts are shown within creditors in current liabilities.

1.15 CreditorsCreditors are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors

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are normally recognised at their settlement amount. For creditors due for settlement in more than 1 year the amount will be discounted for the time value of money where material.

1.16 Financial instrumentsBasic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Complex financial instruments such as interest rate swaps and forward exchange contracts are measured at fair value with changes put through the SoFA in the relevant year. The group applies hedge accounting where allowable under FRS102 section 12 and this is disclosed in the notes if applicable.

1.17 Pension schemesFor the defined benefit pension schemes of the RNIB Group, the current service costs, gains and losses on settlements and curtailments, and administrative expenses are charged to expenditure. Similarly, pension finance costs arising from changes in the net of the interest costs and expected return on assets are charged to expenditure. Where income arises as a result of such changes this is shown in the SoFA as “other” income. Actuarial gains and losses are recognised immediately in the SoFA as “Actuarial gain, or loss, on Defined benefit pension scheme”. RNIB is a member of a multi-employer defined benefit pension plan with Pensions Trust where its share of the actuarial deficit cannot be identified and hence it is treated as a defined contribution scheme. There is an agreement in place to make additional contributions based on current and past service employees and hence a liability is recognised for the present value of these outstanding additional contributions. The Group and RNIB defined benefit pension net scheme asset/liability is shown on the face of the Balance Sheet. For the defined contribution schemes of the RNIB Group the amounts charged to the SoFA in respect of pension costs and the post-retirement benefits are the contributions payable in the year.There are a number of pension arrangements within the Group which are multi-employer pension schemes and as such it is not possible to identify the employer’s share of the underlying assets and liabilities. These are treated as defined contribution schemes in line with the exemption within FRS102. Where multi-employer defined benefit pension schemes have and agreed deficit reduction plan, a liability is recognised for the contributions payable.

1.18 Leased assetsLeases are regarded as finance leases where their terms transfer to the lessee substantially all of the benefits and burdens of ownership other than the right to legal title.

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The obligations to the lessor are shown as part of the borrowings and the rights in the corresponding assets are treated in the same way as owned fixed assets.All operating leases and rental expenses are charged to the SoFA as incurred over the term of the lease on a straight line basis.

1.19 TaxationRNIB is a registered charity, and as such is entitled to certain tax exemptions on income and profit from investments and surpluses on any trading activities carried out in furtherance of RNIB’s primary objectives, if these profits are applied solely for charitable purposes.

1.20 Accounting estimates and judgementsIn preparing the financial statements, the Trustees are required to make estimates and judgements. The matters considered below are considered to be the most important in understanding the judgements that are involved in preparing the financial statements and the uncertainties that could impact the amounts reported in the results of operations, financial position and cash flows.

Cost allocationSupport costs not attributable to a single charitable activity are allocated or apportioned on a basis consistent with identified cost drivers for that cost category. Cost drivers utilised include head count, floor space, and effort and judgement is exercised in applying cost drivers to cost categories.

Public awareness rechargeAn apportionment of public awareness expenditure representing the costs incurred by RNIB in educating the public to be aware of the needs of people with sight loss has been transferred from raising funds expenditure to charitable activities expenditure. In 2017 the amount was £4,611,000 (2016: £5,447,000).

Interest rate swapRNIB entered into an interest rate swap with AIB that runs from 2011 to 2026 and as a result it is necessary to calculate the fair value of the swap at the end of each financial year. Judgement is required in calculating the fair value as it is reliant on discount rates and future interest rate predictions.

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Legacy income accrualLegacy income is recognised in accordance with the income recognition policy detailed in 1.6 above. In calculating the level of legacy accrual, management is required to exercise estimation and judgement, particularly in determining the amount and probability of receipt.

Actuarial assumptions in respect of defined benefit pension schemesThe application of actuarial assumptions relating to various defined benefit pension schemes is incorporated in the financial statements in accordance with FRS 102. In applying FRS 102, advice is taken from independent qualified actuaries. In this context, significant judgement is exercised in a number of areas, including future changes in salaries and inflation, mortality rates and the selection of appropriate discount rates.

Pension scheme deficit reduction paymentsAs explained at note 23, there is a deficit reduction plan in place in respect of several of the Group’s defined benefit pension schemes. In each instance, the relevant group member has agreed with the respective scheme that it will make annual recovery payments that aim to eliminate the deficit over the next 10-12 years. The level of the deficit and the deficit recovery payments are highly sensitive to a number of assumptions, hence the use of independent qualified actuaries.

Provisions

Provisions are recognised when the RNIB has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Impairment of assets

Where an indication of impairment is identified, and estimate of the recoverable value of the asset is required. This requires an estimate of the future economic benefits from the asset and the selection of an appropriate discount rate to calculate the present value of the economic benefits.

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2. Investment income

2017 2017 2017 2016 2016 2016Unrestricted

£’000Restricted

£’000Total£’000

Unrestricted£’000

Restricted£’000

Total£’000

General fundsInvestment income from quoted investments - 221 221 75 363 438Bank interest receivable 1 - 1 1 - 1Rents 7 - 7 8 - 8Royalties - - - 10 - 10

Total 8 221 229 94 363 457

Details of our investment policy can be found in the financial review section of the Trustees Report.

3. Subsidiary undertakings

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

Subsidiary undertakings with a share capital

Registered in Capital heldPercent

Number of £1 ordinary shares held

RNIB Enterprises Limited England and Wales 100 5,000RNIB Services Limited England and Wales 100 1MPH Accessible Media Limited England and Wales 100 10,000Transforming Braille Group LLC USA 20 5 ownership unitsRNIB Business Services LLP England and Wales 100 Not applicable

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RNIB is the sole corporate member of the following organisations which, all bar the Glynn Vivian Home of Rest for the Blind, are limited by guarantee with no shares in issue:

Subsidiary undertakings limited by guarantee

Registered in Company number Charity number Charity number – Scotland

Action for Blind People England and Wales 00026688 205913 SC040050RNIB Charity England and Wales 08971500 1156629 SC044876CIB England and Wales 00149982 214131 -NTNM England and Wales 01973092 293656 -BCNI Northern Ireland NI020701 XN48801 -NLB England and Wales 00058823 213212 -Glynn Vivian England and Wales - 214330 -RNIB Specialist Learning Trust England and Wales 08478985 Exempt Charity -

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

Subsidiary undertakings limited by guarantee

Registered in Company number Charity number

BucksVision England and Wales 08016572 1147814The Blind Society forNorth Tyneside Limited

England and Wales 03736040 1075973

Staffordshire Blind England and Wales 04154438 1091458

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Net income from trading activities of subsidiary undertakings

Results for the year ended 31 March 2017 of the subsidiaries of RNIB operating under association agreements

RNIB Charity£’000

Action£’000

CIB£’000

NTNM£’000

BucksVision

£’000

RNIB Specialist Learning Trust

£’000Total 2017

£’000Income and ExpenditureTotal income 38,198 23,115 343 213 295 1,827 63,991Total expenditure (37,187) (30,476) (410) (213) (310) (1,854) (70,450)Net (expenditure) /income 1,011 (7,361) (67) - (15) (27) (6,459)Actuarial loss on defined benefit pension scheme

- (48) - - - (443) (491)

Net movement in funds 1,011 (7,409) (67) - (15) (470) (6,950)Funds brought forward 356 21,273 1,278 - 473 662 24,042Funds carried forward 1,367 13,864 1,211 - 458 192 17,092

Balance SheetFixed assets 1,367 14,376 1,852 - 22 1,358 18,975Current assets 37,318 20,911 246 70 705 1,374 60,624Creditors – amounts falling due within one year

(37,317) (20,031) (206) (70) (269) (1,279) (59,172)

Creditors – amounts falling due after one year (1) - - - - - (1)Pension scheme liability - (1,392) (681) - - (1,261) (3,334)Net assets 1,367 13,864 1,211 - 458 192 17,092The income in the tables above includes the grants received from RNIB, which are eliminated in the consolidated numbers.

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Results for the year ended 31 March 2016 of the subsidiaries of RNIB operating under association agreements

RNIB Charity£’000

Action£’000

CIB£’000

NTNM£’000

BucksVision

£’000

RNIB Specialist Learning Trust

£’000

Total 2016£’000

Income and ExpenditureTotal income 41,511 27,714 1,244 242 85 1,424 72,220Total expenditure (41,364) (28,413) (510) (242) (319) (1,674) (72,522)Net income/(expenditure) 147 (699) 734 - (234) (250) (302)Actuarial loss on defined benefit pension scheme

- 1,252 25 - - (47) 1,230

Net movement in funds 147 553 759 - (234) (297) 928Funds brought forward 209 20,720 519 - 707 959 23,114Funds carried forward 356 21,273 1,278 - 473 662 24,042

Balance SheetFixed assets 356 22,390 1,888 - 34 1,456 26,124Current assets 8,290 3,017 296 128 516 442 12,689Creditors – amounts falling due within one year (8,069) (2,637) (225) (128) (77) (456) (11,592)Creditors – amounts falling due after one year (221) - - - - - (221)Pension scheme liability - (1,497) (681) - - (780) (2,958)Net assets 356 21,273 1,278 - 473 662 24,042The income in the tables above includes the grants received from RNIB, which are eliminated in the consolidated numbers.

RNIB Charity delivers national services across the UK, funded by a grant from RNIB. The charity also delivered regional services in Cymru, Northern Ireland and Scotland until they were transferred to Action on 1 September 2015. RNIB provides the fundraising service, with net fundraising receipts being restricted for RNIB Charity. The sum of such grants amounted to £13,972,000 in the year (2016: £11,867,000).

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Action delivers regional services in England through their Action Teams in the areas of work, leisure, housing, support for beneficiaries, and information and education. With effect from 1 September 2015 they also took over responsibility for delivering those same services within Cymru, Northern Ireland and Scotland. RNIB provides the fundraising service, with net fundraising receipts being restricted for Action. Since 1 July 2014, RNIB has delivered support functions for Action. The sum of such grants amounted to £13,945,000 in the year (2016: £16,220,000). The reserves of Action have been reduced in the year pending the full transfer of assets and liabilities outlined in note 27.CIB provides a wide range of services to blind and partially sighted people within Cardiff and the Vale of Glamorgan. RNIB provides the fundraising service, with net fundraising receipts being restricted for CIB. The sum of such grants amounted to £95,000 in the year (2016: £95,000). RNIB has also paid to CIB in the previous year £886,000 to cover additional costs funded from income restricted for Cymru. NTNM exists as a shell charity to receive donations and legacies, which are transferred to RNIB to be ring-fenced for the talking newspapers and magazine service.

BucksVision provides services for blind and partially sighted people in Buckinghamshire. BucksVision became a subsidiary charity of Action on 1 July 2014. RNIB has paid a grant to BucksVision in the year of £313,000 (2016: £nil).RNIB Specialist Learning Trust is an Academy Trust which has taken responsibility for Three Spires School in Coventry in September 2013 which provides education for primary age pupils with special educational needs. No financial support was given to the Trust. The Trust’s year end is 31 August and so the consolidation is on the basis of management accounts.RNIB also has a further five wholly owned subsidiaries. These are RNIB Enterprises Limited, RNIB Services Limited, National Library for the Blind (NLB), Blind Centre for Northern Ireland (BCNI), the Glynn Vivian Home of Rest for the Blind (Glynn Vivian), and MPH Accessible Media Limited. RNIB Enterprises Limited holds the controlling interest in RNIB Business Services LLP; the remaining interest is held by MPH Accessible Media Limited.

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Results for the year ended 31 March 2017 of other subsidiaries

RNIB Enterprises

Limited£’000

RNIB Services Limited£’000

NLB£’000

BCNI£’000

RNIB Business Services

LLP£’000

MPH£’000

Total2017£’000

Income and ExpenditureTotal income 6,374 3,081 826 37 - - 10,318Total expenditure (6,240) (3,072) (5) - - - (9,317)Net income 134 9 821 37 - - 1,001Amount gifted/covenanted to RNIB (134) (9) (821) (37) - - (1,001)Net movement in funds - - - - - - -Funds brought forward 5 - - - 10 - 15Funds carried forward 5 - - - 10 - 15

Balance SheetInvestment 10 - - - - - 10Current assets 10,574 5,605 4 - 10 - 16,193Creditors – amounts falling due within one year

(10,579) (5,605) (4) - - - (16,188)

Net assets 5 - - - 10 - 15

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Results for the year ended 31 March 2016 of other subsidiaries

RNIB Enterprises

Limited£’000

RNIB Services Limited£’000

NLB*£’000

BCNI*£’000

RNIB Business Services

LLP£’000

MPH£’000

Total2016£’000

Income and ExpenditureTotal income 332 6,567 408 20 433 445 8,205Total expenditure (81) (6,544) (9) (1) (440) (445) (7,520)Net income/(expenditure) 251 23 399 19 (7) - 685Amount gifted/covenanted to RNIB (251) (23) (399) (19) - - (692)Net movement in funds - - - - (7) - (7)Funds brought forward 5 - - - 7 - 12Capital investment - - - - 10 - 10Funds carried forward 5 - - - 10 - 15

Balance SheetInvestment 10 - - - - - 10Current assets 177 2,073 5 - 482 - 2,737Creditors – amounts falling due within one year

(182) (2,073) (5) - (472) - (2,732)

Net assets 5 - - - 10 - 15

RNIB Enterprises Limited carries out trading activities that include transcription, consultancy and training services to businesses and sales of principally sight-loss related retail products to individuals. A £200,000 facility remains available to RNIB Enterprises Limited and if called upon would be made by RNIB to cover the working capital requirements.RNIB Services Limited administers RNIB’s school fees.NLB exists as a shell charity to receive donations and legacies, which are transferred to RNIB to be ring-fenced for the RNIB National Library Service.

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BCNI exists as a shell charity to receive donations and legacies, which are transferred to RNIB to be ring-fenced for RNIB Northern Ireland.

Glynn Vivian exists as a shell charity following the sale of the property previously owned by Glynn Vivian. RNIB is the sole corporate Trustee and on the grounds of control Glynn Vivian has previously been consolidated within the financial statements of the RNIB Group. The charity is now dormant and so there is no disclosure in the tables above.

MPH was acquired as a going concern on 1 October 2015 by RNIB. Its activities and net assets (except property) were transferred to RNIB Charity on 1 December 2015. The property was transferred to RNIB Group. Therefore, the income and expenditure disclosed in the prior year relates to the period October to November 2015.

RNIB Enterprises Limited is one of two corporate members of RNIB Business Services LLP. The Limited Liability Partnership was set up to work in partnership with MPH Accessible Media Limited to provide services to the commercial and public sectors both in the UK and internationally. On 1 October 2015, RNIB acquired the shares of MPH and as a result the activities of the LLP were wound down in 2016.

A summary of the net assets results for all RNIB subsidiaries is as follows:Total2017

£’000

Total2016

£’000Total income 74,309 80,649Total expenditure (79,767) (80,266)

Net (expenditure)/income (5,458) 383Actuarial gain/(loss) on defined benefit pension scheme

(491) 1,230

Amount gifted/covenanted to RNIB (1,001) (692)Net movement in funds (6,950) 921Funds brought forward 24,057 23,126Investment of capital - 10

Funds carried forward 17,107 24,057

Total Total62

2017£’000

2016£’000

Fixed assets 18,985 26,134Current assets 76,817 15,426Creditors – amounts falling due within one year (75,360) (14,324)Creditors – amounts falling due after one year (1) (221)Pension scheme liability (3,334) (2,958)

Net assets 17,107 24,057

The total net assets of the subsidiary charities and other subsidiaries as at 31 March 2017 amounting to £17,107,000 (2016: £24,057,000) are held within the Group restricted and endowment funds as detailed in note 21.

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4. Expenditure – Group

2017 Unrestricted direct costs

£’000

Restricted direct costs£’000

Support costs£’000

Total

£’000Raising funds 20,710 6 3,657 24,373Charitable activitiesBeing there 4,620 3,020 1,238 8,878Independence 23,041 49,951 13,133 86,125Inclusion 7,342 2,949 1,691 11,982Prevention 923 308 236 1,467

Total charitable activity costs 35,926 56,228 16,298 108,452Total expenditure 56,636 56,234 19,955 132,825

2016 Reclassified Unrestricted direct costs

£’000

Restricted direct costs£’000

Support costs(Reclassified)

£’000

Total(Reclassified)

£’000Raising funds 18,740 340 3,621 22,701Charitable activitiesBeing there 3,594 2,057 959 6,610Independence 22,228 45,630 12,805 80,663Inclusion 4,439 5,765 1,413 11,617Prevention 770 438 257 1,465

Total charitable activity costs 31,031 53890 15,434 100355Total expenditure 49,771 54,230 19,055 123,056

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5. Support costs allocation

2017 Human Resources

£’000

Finance

£’000

InformationTechnology

£’000

Legal Services

£’000

Property Services

£’000

Other

£’000

Governance

£’000

Total

£’000Raising funds 574 858 828 158 116 836 287 3,657

Charitable activitiesBeing there 240 204 318 37 100 270 69 1,238Independence 3,193 1,803 3,859 331 601 2,685 661 13,133Inclusion 419 242 579 45 54 269 83 1,691Prevention 41 29 106 5 10 35 10 236

Total charitable activity costs 3,893 2,278 4,862 418 765 3,259 823 16,298

Total support expenditure 4,467 3,136 5,690 576 881 4,095 1,110 19,955

2016 Reclassified Human Resources

£’000

Finance

£’000

InformationTechnology

£’000

Legal Services

£’000

Property Services

£’000

Other

£’000

Governance

£’000

Total

£’000Raising funds 631 695 975 171 264 509 376 3,621

Charitable activitiesBeing there 214 118 414 25 56 78 54 959Independence 2,827 1,668 4,693 352 1,149 1,341 775 12,805Inclusion 370 175 551 43 67 111 96 1,413Prevention 71 24 116 6 9 18 13 257

Total charitable activity costs 3,482 1,985 5,774 426 1,281 1,548 938 15,434

Total support expenditure 4,113 2,680 6,749 597 1,545 2,057 1,314 19,055

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Basis of allocation:Human resources – HeadcountFinance – ExpenditureInformation and technology services – Number of workstationsLegal Services – ExpenditureProperty services – Floor space Other and Governance (including Strategy and performance, Group support) – Expenditure

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6. Governance costs

Group2017

£’000

Group2016

£’000

RNIB2017

£’000

RNIB2016

£’000Auditors remunerationFees payable to the Charity’s auditor and its associates for the audit of the parent Charity and the Group’s consolidated financial statements*

101 101 101 101

Audit of the Charity’s subsidiaries* 91 78 - -Audit-related assurance services* 14 14 14 14Total amount payable to the Charity’s auditor and its associates 206 193 115 115

Internal audit 91 142 91 142Audit fees – non PricewaterhouseCoopers LLP 11 9 - -Trustees' expenses 32 84 22 69Costs incurred in running the Chairman's Office 51 68 51 68International activity – including World Blind Union 90 60 90 60General costs incurred in servicing RNIB's corporate committees and the statutory affairs of RNIB

629 758 94 51

Total governance costs 1,110 1,314 463 505* Excluding VAT

Included within the fees payable to the Charity’s auditor and its associates for the audit of the parent Charity and the Group’s consolidated financial statements is £18,000 relating to additional fees relating to the 2016 audit.

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7. Taxation

RNIB is a registered charity and is thus exempt from tax on income and gains falling within sections 478 – 489 of the Corporation Tax Act 2010 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charge arises in any of the non-charitable subsidiary entities included in the Group financial statements due to their policy of gifting all taxable profits to their parent each year.

8. Group employee remuneration

The average monthly number of employees during the year was 2,335 (2016: 2,359), of which, the average full time equivalent was 1,973 (2016: 1,981). The total emoluments are analysed as shown below:

2017£’000

2016£’000

Salary costs 55,719 53,477Employer’s NI contributions 5,089 4,781Employer’s pension contributions 4,954 4,351

Total ongoing emoluments 65,762 62,609Redundancy and termination costs 2,180 1,278

Total emoluments 67,942 63,887

Included in the total emoluments figures above are payments amounting to £2,180,000 made to 198 members of staff (2016: £1,278,000 to 120 members of staff) on termination of employment. These costs have been incurred as part of a programme of work to implement our strategy and ensure we have the right people with the right skills to effectively meet the needs of our customers.

Where redundancy, termination and compensation payments were made, payments were based on service. These payments are managed by the Human Resources department in line with policy and procedures and authorised according to the scheme of delegation based on size of payment.

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The following numbers of employees received total emoluments within the bands shown. Emoluments include salaries, fees, redundancy payments, amounts in lieu of notice and the estimated money value of any other benefits, received otherwise than in cash, and exclude employer pension costs. The column entitled 2017 no longer employed contains staff who left during the year or who were under notice of redundancy at 31 March 2017.

2017 no longer

employed

2017 still employed

2017 total 2016 total

Between £60,001 and £70,000 12 14 26 12Between £70,001 and £80,000 2 7 9 3Between £80,001 and £90,000 4 5 9 9Between £90,001 and £100,000 2 - 2 -Between £100,001 and £110,000 - 1 1 3Between £110,001 and £120,000 - 2 2 6Between £120,001 and £130,000 2 1 3 -Between £140,001 and £150,000 1 - 1 -Between £150,001 and £160,000 1 - 1 1

There are 21 people (2016: four) disclosed in the bandings above where individuals received a payment on the termination of employment.

RNIB Group is led by the Executive Board consisting of the Chief Executive Officer and five other members. The Executive Board are regarded as the Charity’s key management personnel under the Financial Reporting Standard 102. During 2016/17, the Executive was restructured alongside other senior grades to prepare the ground for a full organisational restructure. A fuller explanation can be found in the ‘How we are managed’ section of this report. The restructuring aimed to significantly reduce costs of senior management (which will impact more fully in the 2017/18 accounts) so some significant redundancy and termination costs were incurred. The total earnings, including benefits, employer pension contributions and termination payments received by staff who were members of the Executive Board during 2016/17, totalled £1,288,361 (2016: £951,000). Of this, Directors received £247,493 related to termination and loss of office payments; these costs are not included in the table of salary bandings above.

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RNIB made payments on behalf of 39 (2016: 26) higher paid employees in respect of the RNIB Retirement Benefit Scheme and the Teachers’ Pension Scheme as well as NEST, and there were payments made to 22 (2016:16) members of staff in respect of the defined contribution element of the RNIB Retirement Benefits Pension Scheme. The total amount of employer contributions paid in respect of these employees was £421,000 (2016: £383,000). For new entrants since 1 April 2005 the RNIB Retirement Benefits Pension Scheme (RBPS) is partly defined benefit and partly defined contribution so included in the numbers reported are staff that may be within both elements of the scheme.

In addition, Action made payments on behalf of 12 (2016: three) of its employees in respect of pension contributions totalling £99,000 (2016: £16,000).

Staff can claim reimbursement of expenditure incurred by them in the course of undertaking business on behalf of RNIB. Expenses are claimed against a set policy and guidelines, are independently authorised and are not regarded as part of the employee’s emoluments.

9. RNIB Trustees’ expenses and related party transactions

A number of Trustees bear the cost of attending meetings themselves. Trustees receive no benefits from the Group except as users of our services and as described below.

Most Trustees of RNIB Group sit on a number of RNIB Committees, Steering Groups and/or school governing bodies in addition to their charity's Board. As such, most trustees need to travel to RNIB's London office on multiple occasions throughout the year.

A total of £7,280 was paid to or on behalf of 12 Trustees of the Charity as reimbursement of travel and subsistence expenses incurred in attending meetings (2016: £28,610 to eight Trustees). Of this, £360 was paid to one Trustee as reimbursement of overseas travel and subsistence incurred in attending international meetings and conferences. In addition to this, £10,475 was paid by RNIB on behalf of one trustee for overseas travel and subsistence incurred in attending international meetings and conferences (2016: £6,179 to one Trustee). Five Trustees chose to waive their expenses, which totalled £369 (2016: £144).

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Lunches and overnight stays in RNIB establishments during meetings cost a further £4,522 (2016: £20,372).

During the year RNIB paid Kevin Carey, Chair of RNIB, £26,075 (2016: £25,323) as remuneration in respect of carrying out his duties as Chair of RNIB, this was adjusted at the Group Board meeting on 1 December 2016 to reflect the staff pay award. These payments have been made with the consent of the Charity Commission. Kevin Carey was employed as an executive director of the HumanITy organisation during this year. Last year HumanITy received a management fee of US$3,400 per month from Transforming Braille LLC Group of which RNIB has a 20percent shareholding. As of May 2016, Kevin Carey no longer acts as President of Transforming Braille LLC Group, and as such no longer receives any remuneration from the organisation. RNIB made no payments to Transforming Braille LLC Group during the year (2016: £149,882). Kevin Carey is Director of Lateral Thinking, which is in receipt of a Management fee of £2,000 per month from Atos IT Solutions & Services Ltd, for Kevin’s services as Accessibility Consultant. RNIB Charity received £104 from Atos.

Mike Nussbaum, a Trustee of RNIB Group and a Trustee of Action for Blind People, is a Trustee of Guide Dogs for the Blind Association from which £160 (2016: £38,191) has been received and to which £13,000 has been paid (2016: £52,520). Also Guide Dogs for the Blind Association own two Action hotels where the lease is charged at a peppercorn rent. Mike is a Trustee of Blind Children UK to which £669 has been paid (2016: £5,198). Mike is also a Trustee of Vision 2020 UK to which £10,000 (2016: £13,712) has been paid and from which £448,939 (2016: £37) has been received.

Keith Valentine, a Trustee of the RNIB Group, is Deputy Chief Executive of the Thomas Pocklington Trust, who received £87 from RNIB (2016: £1,361), he is also a Trustee for Birmingham Vision who received £22 (2016: £24) from RNIB.

Alan Tinger, a Trustee of the RNIB Group, is also a member of Vision 2020 UK Prevalence Study Project Board, Vision 2020 UK, received £10,000 from RNIB.

During the year, a total of £8,680 was donated to RNIB from five Trustees.

The RNIB Group enters a comprehensive range of insurance policies to protect Trustees, officers and employees against losses and legal liabilities arising from neglect or default in the course of business. Total premiums for these policies amounted to £22,000 (2016: £20,440).

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10. Grants payable

Grants payable in the year amount to £214,000 (2016: £251,000) with two (2016: four) grants of £5,000 or above, amounting to £51,000 (2016: £39,000). In addition, around 525 (2016: 737) small grants at an individual value of less than £5,000 were made.

2017£’000

2016£’000

Association of Blind Asians - 10Clore Leadership 26 -Kimberley Burrows – to attend Leeds College of Art - 6South Lincolnshire Blind Society - 7World Blind Union – Core Work Sponsorship 25 16Other grants – all under £5,000 163 212

Total grants payable 214 251

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

2017£’000

2016£’000

Auditors remunerationFees payable to the Charity’s auditor and its associates for the audit of the parent Charity and the Group’s consolidated financial statements*

101 101

Audit of the Charity’s subsidiaries* 91 78Audit-related assurance services* 14 14Total amount payable to the Charity’s auditor and its associates 206 193

Audit fees – non PricewaterhouseCoopers LLP 11 9Operating lease payments – other 1,626 1,843Foreign exchange losses 51 61Depreciation charge – tangible fixed assets 3,377 3,827Amortisation charge – intangible fixed assets 562 -Impairment on tangible fixed assets 2,095 -Profit on disposal of fixed assets (31) (79)Inventory recognised as an expense 86 166Impairment of inventory 121 -

* Excluding VAT

Included within the fees payable to the Charity’s auditor and its associates for the audit of the parent Charity and the Group’s consolidated financial statements is £18,000 relating to additional fees relating to the 2016 audit.

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12 Tangible fixed assets

GROUP Service properties

£’000

Service properties

held for sale£’000

Machinery, vehicles and

equipment£’000

Total

£’000CostBalance 1 April 2016 101,704 8,379 8,834 118,917Additions 1,029 - 2,461 3,490Elimination on disposal (534) - (187) (721)Balance 31 March 2017 102,199 8,379 11,108 121,686Accumulated depreciationBalance 1 April 2016 17,849 3,474 6,567 27,890Charge for year 1,989 233 1,155 3,377Impairment provision 660 1,372 63 2,095Elimination on disposal (79) - (102) (181)Balance 31 March 2017 20,419 5,079 7,683 33,181Net book value 31 March 2017 81,780 3,300 3,425 88,505Net book value 31 March 2016 83,855 4,905 2,267 91,027

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RNIB Service properties

£’000

Service properties

held for sale£’000

Machinery, vehicles and

equipment£’000

Total

£’000CostBalance 1 April 2016 80,921 8,379 3,249 92,549Additions 1,005 - 1,228 2,233Elimination on disposal (335) - (21) (356)Transfers 25 - 13 38Balance 31 March 2017 81,616 8,379 4,469 94,464Accumulated depreciationBalance 1 April 2016 15,616 3,474 2,036 21,126Charge for year 1,551 233 621 2,405Impairment provision - 1,372 - 1,372Elimination on disposal (36) - (10) (46)Transfers 2 - 8 10Balance 31 March 2017 17,133 5,079 2,655 24,867Net book value 31 March 2017 64,483 3,300 1,814 69,597Net book value 31 March 2016 65,305 4,905 1,213 71,423

Service properties are used to provide services to blind and partially sighted people. Of the net book value of property used by the Group, £26,564,000 (2016: £27,169,000) represents leaseholds of more than 50 years whilst £274,000 (2016: £359,000) represents leaseholds of less than 50 years.

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

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13. Intangible assets

GROUP & RNIB Software Development

£’000

Total

£’000CostBalance 1 April 2016 1,400 1,400Additions 2,304 2,304Balance 31 March 2017 3,704 3,704Accumulated amortisationBalance 1 April 2016 - -Charge for year 562 562Balance 31 March 2017 562 562Net book value 31 March 2017 3,142 3,142Net book value 31 March 2016 1,400 1,400

The additions relate to three software development projects as follows:- enterprise resource planning system- human resources and payroll system- electronic library

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14. Investments

Group Group Group RNIB RNIB RNIBFixed Asset Investments

£’000

Current Asset Investments

£’000

Total£’000

Fixed Asset Investments

£’000

Current Asset Investments

£’000

Total£’000

Market value at 1 April 2016 15,735 45 15,780 9,220 - 9,220Acquisitions at cost 25 50 75 - - -Disposal proceeds (9,958) - (9,958) (2,926) - (2,926)Net realised investment gain 551 551 4 4Net gain on revaluation 459 1 460 452 - 452Market value at 31 March 2017

6,812 96 6,908 6,750 - 6,750

Historical cost at 31 March 2017

4,791 50 4,841 4,782 - 4,782

Fixed Asset Investments Market value Market value Market value Market value2017 Group

£’0002016 Group

£’0002017 RNIB

£’0002016 RNIB

£’000UK quoted unit trusts 5,967 15,028 5,900 8,508UK unquoted equity shares - - 5 5Property 845 707 845 707Market value at 31 March 6,812 15,735 6,750 9,220Historical cost at 31 March 4,841 13,822 4,782 7,304

Current Asset Investments Market value Market value Market value Market value2017 Group

£’0002016 Group

£’0002017 RNIB

£’0002016 RNIB

£’000UK quoted investments 96 45 - -Market value at 31 March 96 45 - -Historical cost at 31 March 50 - - -

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

2017£’000

2017Percent

2016£’000

2016Percent

F&C Ethical Bond Share Class 2 - - 2,922 18.6CAF UK Equities fund - - 3,040 19.4L&G Fixed Interest Trust - - 2,605 16.6F&C Ethical Bond Share Class 2 (Emma Nye Fund) 3,215 53.9 2,562 16.3F&C UK Income Fund Share Class 2 (Elizabeth Eagle Bott)

406 6.8 - -

F&C Ethical Bond Share Class 2 (Elizabeth Eagle Bott) 348 5.8 - -F&C UK Income Fund Share Class 2 (Dr Duncan Leeds) 701 11.7 - -F&C Ethical Bond Share Class 2 (Dr Duncan Leeds) 600 10.1 - -

15. Stocks and work-in-progress

Group2017

£’000

Group2016

£’000

RNIB2017

£’000

RNIB2016

£’000Finished goods for resale 1,716 1,057 369 -Raw materials and consumables 140 285 - -

Total 1,856 1,342 369 -

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16. Debtors – amounts falling due within one year

Group2017

£’000

Group2016

£’000

RNIB2017

£’000

RNIB2016

£’000Trade debtors 8,926 7,170 1,094 685Amounts owed by Group undertakings - - 20,751 10,642Other debtors 1,060 3,433 602 3,249Legacy accrued income 17,555 15,428 17,555 15,428Prepayments and accrued income 3,722 3,714 1,278 1,588Total 31,263 29,745 41,280 31,592

The Group and RNIB has been notified of further legacies amounting to £11,227,000 (2016: £15,212,000), which have not been recognised as income at 31 March 2017 because the conditions of the accounting policy for legacies have not been met. When these conditions are met these amounts will be included in future periods.

79

17. Creditors – amounts falling due within one year

Group2017

£’000

Group2016

£’000Reclassified

RNIB2017

£’000

RNIB2016

£’000Reclassified

Trade creditors 795 1,063 763 589Bank overdraft - 42 - 1Obligations under bank loans 7,429 4,848 7,429 4,848Interest rate swap 809 817 809 817Net obligations under finance leases 137 28 83 16Taxes and social security costs 1,545 1,308 756 497Amounts owed to Group undertakings - - 15,014 5,456Other creditors 2,106 2,656 636 354Accruals 6,159 5,467 3,356 3,742Deferred income 1,119 1,014 16 251

Total 20,099 17,243 28,862 16,571

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

The 2016 figures have been reclassified to transfer items previously included within creditors due within one year to provisions for liabilities and charges.

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

RNIB has an unsecured revolving credit facility with Barclays Bank with a maximum limit of £6million (expiring in July 2018). RNIB also has a secured revolving credit facility with Barclays Bank with a maximum limit of £3million, secured on the

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property at Judd Street in London (expired in August 2017). In both cases, loan tranches with 12 month maturity can be drawn down at any time. Interest is charged at 1.25percent above the Barclays Bank base. £1.5million was repaid on 10 August 2017, £2.3million is due for repayment on 16 February 2018 and £2.5million is due for repayment on 31 July 2018.

The remaining amount disclosed as net obligations under loans relates to the AIB mortgage repayment due in the next 12 months (£1million) and the mortgage repayments due on the mortgages acquired with MPH (£91,000). Full details of the AIB mortgage is disclosed in note 18. Full details of the interest rate swap are disclosed in note 20.

18. Creditors – amounts falling due after more than one year

Group2017

£’000

Group2016

£’000

RNIB2017

£’000

RNIB2016

£’000Net obligations under finance leases are payable as followsBetween one and two years 97 6 96 6Between two and five years 191 235 191 14

Obligations under bank loans are payable as followsBetween one and two years 1,091 1,040 1,091 1,040Between two and five years 3,227 3,130 3,227 3,130More than five years 13,000 14,232 13,000 14,232Interest rate swapBetween one and two years 737 751 737 751Between two and five years 1,809 1,858 1,809 1,858More than five years 1,808 2,018 1,808 2,018

Total 21,960 23,270 21,959 23,049

In 2011/12 RNIB exercised its option to convert a three-year revolving loan agreement with the AIB Group (UK) plc to finance the redevelopment known as the RNIB Pears Centre for Specialist Learning in Coventry into a 23-year

81

mortgage secured over the freehold property at Coventry. At 31 March 2017 the amount owing on the loan is £18million (2016: £19million) in total.

Interest is charged on the loan at 0.65 percent above the three-month LIBOR rate. RNIB has entered into a swap with AIB under which for the period 30 December 2011 to 31 December 2026 the interest charged on the outstanding amount of the loan, less £500,000, is at a fixed rate of 5.05 percent.

Under the terms of the mortgage RNIB undertakes to maintain the aggregate of Designated and General Reserves at a level 25 percent above the amount outstanding at any time. At 31 March 2017, with the amount outstanding at £18,000,000 (2016: £19,000,000) the level of such reserves has to exceed £22,500,000 (2016: £23,750,000). The aggregate of Designated and General Reserves as at 31 March 2017 was £51,884,000 as shown in note 21.

19. Provisions for liabilities and charges

Group Balance at1 April 2016

£’000

Charged to income and expenditure

£’000

Spent

£’000

Balance at 31 March

2017£’000

Dilapidations on leases 479 740 - 1,219Redundancy and Termination costs - 1,309 - 1,309Potential taxation costs 515 1,500 - 2,015

994 3,549 - 4,543

RNIB Balance at1 April 2016

Charged to income and

Spent Balance at 31 March

82

£’000 expenditure£’000

£’000 2017£’000

Dilapidations on leases 479 - - 479Redundancy and Termination costs - 594 - 594Potential taxation costs 515 1,500 - 2,015

994 2,094 - 3,088

83

20. Financial instrumentsRNIB has the following financial instruments:

Note Group2017£’000

Group2016£’000Reclassified

RNIB2017£’000

RNIB2016£’000Reclassified

Financial assets at fair value through statement of financial activities- long term investments 14 6,812 15,735 6,750 9,220- short term investments 14 96 45 - -

Financial assets that are debt instruments measured at amortised cost

- trade debtors 16 8,926 7,170 1,094 685- amounts owed by group undertakings 16 - - 20,751 10,642- other debtors 16 1,060 3,433 602 3,249- legacy accrued income 16 17,555 15,428 17,555 15,428- other accrued income 16 2,677 3,714 335 1,588

Financial liabilities measured at fair value through statement of financial activities

- derivative financial instruments: interest rate swap 17/18

5,163 5,444 5,163 5,444

Financial liabilities measured at amortised cost- secured short term debt 17 2,500 1,000 2,500 1,000- secured long term debt 17/1

817,000 18,000 17,000 18,000

- MPH secured and unsecured mortgages 17/18

409 450 409 450

- finance leases 17/18

425 269 370 22

- unsecured short term loan 17 4,838 3,800 4,838 3,800- bank overdraft 17 - 42 - 1- trade creditors 17 795 1,063 763 589- taxes and social security costs 17 1,545 1,308 756 497- other creditors 17 2,106 2,656 636 354- amounts owed to group undertakings 17 - - 15,014 5,456

84

- accruals 17 6,159 5,467 3,356 3,742- deferred income 17 1,119 1,014 16 251- provisions for liabilities and charges 19 4,543 994 3,088 994

The 2016 figures have been reclassified to transfer items previously included within creditors due within one year to provisions for liabilities and charges.

Interest rate swapIn 2011/12 RNIB was provided with a 23 year mortgage with the AIB Group (UK) plc to finance the redevelopment known as the RNIB Pears Centre for Specialist Learning in Coventry. Interest is charged on the loan at 0.65 percent above the three-month LIBOR rate. At the same time RNIB entered into an interest rate swap with AIB under which for the period 30 December 2011 to 31 December 2026 the interest charged on the outstanding amount of the mortgage, less £500,000, is at a fixed rate of 5.05 percent.

In accordance with FRS 102, RNIB Group is treating the interest rate swap as a cash flow hedge and as a result the fair value of this financial instrument is shown as a liability in the balance sheet of RNIB Group. The annual movement in the fair value of the instrument is shown in other gains and losses on the face of the statement of financial activities. The fair value was calculated by AIB and the assumptions have been tested for reasonableness by the management.

21. Group/RNIB statement of funds

Designated Funds

1 April2016£’000

Income£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2017£’000

Net book value – Service properties

40,401 - (1,551) 1,780 280 40,910

Net book value – Other fixed assets

2,613 - (1,183) 3,526 - 4,956

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Total designated – Group and RNIB

43,014 - (2,734) 5,306 280 45,866

Net book value – service properties: The purpose is to recognise the value, net of long term debt, of RNIB’s service properties that are unavailable to general reserves. The transfer of £1,780,000 comprises £1,030,000 of additions and transfers offset by disposals of £301,000 together with a reduction in the long-term debt of £1,000,000 relating to the loan repayment regarding the redevelopment at the RNIB Pears Centre. There has also been a reduction in the loan relating to the assets acquired from MPH of £51,000. Such fixed asset properties held in the subsidiary charities are recognised within the restricted funds.

Net book value – other fixed assets: The purpose is to recognise the value, net of long term debt, of RNIB’s other fixed assets that are unavailable to general reserves. Such other fixed assets held in the subsidiary charities are recognised within the restricted funds. The transfer of £3,526,000 comprises additions amounting to £3,545,000 less the net book value of disposals of £19,000.

Total unrestricted funds

1 April2016£’000

Income (including investment

gains/losses)£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2017

£’000

Designated from above 43,014 - (2,734) 5,306 280 45,866

Free Reserves 22,810 58,520 (62,439) (4,586) - 14,305Pension reserve 7,562 326 (791) - (16,259) (9,162)

Total other unrestricted 30,372 58,846 (61,625) (4,586) (16,259) 5,143RNIB Enterprises Limited - 6,374 (6,374) - - -RNIB Services Limited - 3,081 (3,081) - - -NLB - 883 (883) - - -NTNM - 252 (252) - - -

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BCNI - 37 (37) - - -Total unrestricted – RNIB and Group

73,386 69,473 (76,591) 720 (15,979) 51,009

Restricted Funds

1 April2016

£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2017

£’000

Emma Nye fund welfare pensions

409 96 (142) - - 363

Dr Duncan Leeds Bequest 64 39 (28) - - 75Elizabeth Eagle-Bott Memorial Fund

9 6 (4) - - 11

Donations for specified services and equipment

2,254 10,875 (10,322) (720) - 2,087

Big Lottery FundAdvantAGE - Wales Eye Patient Advocacy Service

3 - - - - 3

AdvantAGE - Wales Eye Patient Advocacy Service Continuation

37 (16) (18) - - 3

Awards for All - RIBS (Reducing Isolation, Building skills)

8 - (6) - - 2

87

1 April2016

£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2017

£’000

Empowering Young People Programme – Realise

12 99 (128) - - (17)

Supporting Families - Family Insight

19 135 (128) - - 26

Safe and Well - Lisburn in Focus

9 (1) (7) - - 1

Reaching Communities - Optimeyes

22 215 (233) - - 4

Connecting Older People - Looking Forward

134 87 (130) - - 91

Bright New Futures – Future In-Sight

38 203 (164) - - 77

Reaching Communities – Talk and Support: Supporting our Volunteers through Mentoring

13 43 (36) - - 20

Reaching Communities - Trainee Grade Scheme: Extending the Reach

(1) 47 (48) - - (2)

Investing in Communities - Advice Plus

1 - (1) - - -

Investment In Communities - Looking To The Future

126 171 (166) - - 131

88

1 April2016

£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2017

£’000

People & Places - All Wales Welfare Rights Service for People with Sensory Loss

120 364 (302) - - 182

Basic Online Skills - Online Today

236 1,998 (1,820) - - 414

Investing in Communities – IRISS

65 204 (145) - - 124

Awards for AllFamily Activity Days 1 - (1) - - -

Heritage Lottery FundYour Heritage - Seeing Our History

1 - (1) - - -

Our Heritage - Museums in Focus

(1) - 1 - - -

Your Heritage - CultureLink SE

- 106 (122) - - (16)

Department of HealthIESD - Electronic Certificate of Visual Impairment (eCVI)

83 61 (139) - - 5

IESD – Support for Early Reach in Clinics and Hospitals (SEARCH)

1 - (1) - - -

89

1 April2016

£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2017

£’000

IESD - EIRECS Early Intervention and Rehabilitation in Eye Care Services

2 98 (82) - - 18

HSCVF - Community Eye Health Champions

12 132 (139) - - 5

Total restricted – RNIB 3,677 14,962 (14,312) (720) - 3,607

Action 21,273 9,170 (16,531) - (48) 13,864RNIB Charity 356 24,236 (23,225) - - 1,367CIB 1,277 248 (315) - - 1,210RNIB Specialist Learning Trust

662 1,827 (1,854) - (443) 192

BucksVision 473 (18) 3 - - 458Total restricted – Group and RNIB

27,718 50,425 (56,234) (720) (491) 20,698

Restricted fund balances may be in a deficit situation pending future receipts where such funding is given on a reclaim basis and at 31 March 2017 such deficit balances amounted to £148,000 (2016: £104,000), which lies within “Donations for specified services and equipment”.

The amounts included within “Group” represent the net assets at fair value of the subsidiary charities, other than those held within endowment funds.

90

Endowment Funds

1 April2016

£’000

Income including

Investment gains/(losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2017

£’000

Sunshine 343 14 - - - 357Emma Nye 3,040 175 - - - 3,215Bristol Blind Fund 110 6 - - - 116Eagle-Bott Memorial 657 37 - - - 694Dr Duncan Leeds Bequest 1,231 71 - - - 1,302GDC Rushton 177 9 - - - 186Total endowment – RNIB 5,558 312 - - - 5,870CIB 1 - - - - 1Total endowment – Group and RNIB

5,559 312 - - - 5,871

We apply a total return approach to The Sunshine Endowment Fund. In the year this resulted in the release of the unapplied total return amounting to £nil (2016: £19,000) to general funds. Within the balance at 31 March 2017, the value of the gift element of the permanent endowment was £323,000 (2016: £323,000) and the unapplied total return was £34,000 (2016: £20,000).

91

Summary of Funds

1 April2016

£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other losses£’000

31 March2017

£’000

RNIBUnrestricted 73,386 69,462 (76,580) 720 (15,979) 51,009Restricted 3,677 14,962 (14,312) (720) - 3,607Endowment 5,558 312 - - - 5,870

Total 82621 84,736 (90,892) - (15,979) 60,486GroupUnrestricted 73,386 69,473 (76,591) 720 (15,979) 51,009Restricted 27,718 50,425 (56,234) (720) (491) 20,698Endowment 5,559 312 - - - 5,871

Total 106663 120,210 (132,825) - (16,470) 77,578

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22. Analysis of net assets between funds

Group fund balances are represented by:

Unrestricted funds£’000

Restricted funds£’000

Endowment funds£’000

Total funds2017

£’000

Unrestricted funds£’000

Reclassified

Restricted funds£’000

Endowment funds£’000

Total funds2016

£’000Reclassified

Tangible/intangible fixed assets 72,739 18,908 - 91,647 72,823 19,604 - 92,427Investments 845 96 5,871 6,812 3,628 6,548 5,559 15,735Net current assets 13,089 5,029 - 18,118 13,637 4,524 - 18,161Long-term liabilities (26,502) (1) - (26,503) (24,264) - - (24,264)Defined benefit pension scheme (liability)/asset

(9,162) (3,334) - (12,496) 7,562 (2,958) - 4,604

Total net assets 51,009 20,698 5,871 77,578 73,386 27,718 5,559 106,663

RNIB fund balances are represented by:

Unrestricted funds£’000

Restricted funds£’000

Endowment funds£’000

Total funds2017

£’000

Unrestricted funds£’000

Reclassified

Restricted funds£’000

Endowment funds£’000

Total funds2016

£’000Reclassified

Tangible/intangible fixed assets 72,739 - - 72,739 72,823 - - 72,823Investments 850 30 5,870 6,750 3,634 28 5,558 9,220Net current assets 11,629 3,577 - 15,206 13,410 3,649 - 17,059Long-term liabilities (25,047) - - (25,047) (24,043) - - (24,043)Defined benefit pension scheme (liability)/asset

(9,162) - - (9,162) 7,562 - - 7,562

Total net assets 51,009 3,607 5,870 60,486 73,386 3,677 5,558 82,621

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The 2016 figures have been reclassified to transfer items previously included within net current assets to long-term liabilities as a result of items in creditors due within one year being transferred to provisions for liabilities and charges.

23. Pension costs

The RNIB Group pension arrangements comprise those of RNIB and the subsidiary charities, RNIB Charity, Action and CIB. The net pension reserve of £9.2millon deficit (2016: £7.6million surplus) disclosed in the balance sheet only refers to RNIB and NLB. The scheme deficits for Action, CIB, and RNIB Specialist Learning Trust are included in restricted reserves along with all reserves for those entities. A summary of the movement in pension assets and liabilities for the Group’s defined benefit pension funds is shown below:

Amounts charged to SoFA

£’000

Actuarialgains (losses)

£’000

Defined Benefit Pension Scheme

liability£’000

RNIB 3,866 (16,259) (8,562)NLB 32 - (600)Action schemes one 129 (48) (1,392)Action schemes three - - -CIB - - (681)RNIB Specialist Learning Trust 119 (443) (1,261)

Total defined benefit schemes 4,146 (16,750) (12,496)

RNIBThe RNIB Retirement Benefits Pension Scheme (RBPS) is partly defined benefit and partly defined contribution. Members joining before 1 April 2005 are wholly defined benefit, with those members joining after, having a hybrid of defined benefit and defined contribution. The assets of the Scheme are held in a separate fund, under control of its Trustees, to which RNIB has no access. A salary sacrifice arrangement was introduced 1 July 2010 whereby the

94

member’s salary is reduced by the amount of the member contribution and in return the employer makes an equivalent contribution to the Scheme.

An actuarial valuation was carried out at 31 March 2014 by the pension scheme’s actuary Aon Hewitt, using the projected unit method. The valuation disclosed that the market value of the scheme’s assets (excluding defined contribution and additional voluntary contribution assets) at that date was £175.9million, and that there was a surplus of £0.6million relative to the technical provisions (the level of assets agreed by the Trustees and RNIB as being appropriate to meet member benefits, assuming the scheme continues as a going concern). Contributions by RNIB therefore reduced to 12.5 percent for future accrual of final salary benefits from 1 January 2015. As of 1 January 2015, and in agreement with the pension scheme Trustees, RNIB also ceased to make additional deficit recovery contributions of £828,000 a year. We are awaiting the results of the 31 March 2017 actuarial valuation.

RNIB also participates in the Teachers’ Pension Scheme, a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers’ Pension Scheme is an unfunded scheme. Contributions on a “pay as you go” basis are credited to The Exchequer under arrangements governed by The Superannuation Act 1972.

RNIB has an auto-enrolment pension scheme which is administered by the National Employment Savings Trust (NEST). This is a defined contribution scheme. In the year RNIB contributed £101,000 (2016: £106,000) on behalf of 732 (2016: 632) employees.

RNIB CharityRNIB Charity participates in the RNIB Retirement Benefits Scheme. This is a hybrid scheme for members joining after 1 April 2005 and a defined benefit scheme for prior entrants. The assets and liabilities of the scheme are accounted for within the Group financial statements. The charity is unable to identify, on a reasonable and consistent basis, its share of the underlying assets/liabilities as such information is unavailable on a disaggregated basis. Therefore, RNIB Charity has accounted for contributions as if the scheme were a defined contribution scheme.

During the year contributions of £1,171,000 (2016: £1,905,000) were paid into the scheme on behalf of the charity .

95

ActionAction participates in five pension schemes and the assets of all the schemes are held separately from those of RNIB.

Scheme number one is the Action Defined Benefit Scheme which was offered through the Pensions Trust. The scheme has been closed to new members since 1 October 1997. Three employees remain active.

Scheme number two is the Action for Blind People money purchase scheme and is open to existing and new employees. It is currently substantially all invested in the Pensions Trust Growth Series 3 Scheme. Due to its capital guarantee, this scheme differs in some important respects from a standard Defined Contribution Scheme, and following legislation in 2011 is now classified legally as a Defined Benefit Scheme. Action is unable to identify, on a reasonable and consistent basis, its share of the underlying assets because the Pensions Trust does not provide such information as this is unavailable on a disaggregated basis. Accordingly, due to the nature of the Scheme, Action has accounted for contributions as if the scheme were a Defined Contribution Scheme. Members contributions are not fixed, employees are able to make contributions up to 10 percent of their salaries.

Scheme number three is a defined benefit scheme operated by Wiltshire County Council, relating to staff transferred from Shelwork Industries on 1 April 2000. It is closed to new members of the Charity. The Charity’s employees are not the only members of the scheme, and so the assets of this scheme are not held exclusively for their benefit. With effect from 31 March 2006 the Shelwork factory operation ceased to trade and almost all members of this scheme subsequently ceased to be employees of the Charity. The one remaining active member as at 31 March 2015 retired on 17 October 2016. This created a cessation liability of £374,000.

Scheme number four is the RNIB Retirement Benefits Pension Scheme of which Action became an Employer on 1 April 2009 pursuant to the Transfer of Undertakings Agreement whereby 118 scheme members transferred by TUPE to Action. With regard to Action it closed to new members with immediate effect from 1 April 2009. Under the Association Agreement with RNIB, the deficit on the scheme disclosed by the Triennial Actuarial Valuation at 31 March is the responsibility of RNIB. The FRS102 review of the whole scheme at 31 March 2017 showed a deficit of which £80,000 (2016: surplus of £19,000) is attributable to Action.

96

Scheme number five is the Teachers’ Pension Scheme, a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers’ Pension Scheme is an unfunded scheme. Contributions on a “pay as you go” basis are credited to the Exchequer under arrangements governed by the Superannuation Act 1972.

CIBCIB is a participant within the defined benefit scheme “Cardiff and Vale of Glamorgan Pension Fund” which is part of the Local Government Pension Scheme. The last employees left the scheme on 31 March 2016 so in the year CIB contributed £nil (2016: £9,700 on behalf of two employees) and £nil (2016: £58,700) as a deficit contribution. An estimate for the cessation liability of £681,000 (2016: £681,000) has been made.

CIB has a defined contribution pension scheme with Scottish Widows. In the year CIB contributed £6,100 (2016: £2,400) on behalf of three employees.

RNIB Specialist Learning TrustRNIB Specialist Learning Trust is a participant within the defined benefit scheme “West Midlands Pension Fund” which is part of the Local Government Pension Scheme.

RNIB Specialist Learning Trust also participates in the Teachers’ Pension Scheme, a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers’ Pension Scheme is an unfunded scheme. Contributions on a “Pay as you go” basis are credited to The Exchequer under arrangements governed by The Superannuation Act 1972. This scheme is treated as a defined contribution scheme because no liability sits with RNIB.

NLBFollowing the merger with NLB, RNIB also offers the Pensions Trust’s Growth Plan. This is a multi-employer scheme which provides benefits to some 1,300 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for RNIB to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme and reflects the present value of agreed deficit reduction payments as a liability in the balance sheet. Full details are shown below.

97

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2011. This valuation showed assets of £780m, liabilities of £928m and a deficit of £148m. The following tables have been provided by the Pensions Trust.

RNIB has agreed to the following recovery plan payments:

Year ending31 March

2017£’000

31 March 2016

£’000

31 March 2015

£’000Year 1 67 65 68Year 2 69 67 70Year 3 71 69 72Year 4 73 71 74Year 5 75 73 76Year 6 77 75 78Year 7 80 77 81Year 8 82 80 83Year 9 42 82 -Year 10 - 42 -

98

The present value of the recovery plan contributions as recognised in RNIB Group balance sheet31 March

2017£’000

31 March 2016

£’000

31 March 2015

£’000Present value of provision 600 633 560

Reconciliation of opening and closing provision2017

£’0002016

£’000Provision at start of year 633 560Unwinding of the discount factor (interest expense) 13 9Deficit contribution paid (65) (68)Remeasurements - impact of any change in assumptions 19 (10)Remeasurements - amendments to the contribution schedule - 142Provision at end of year 600 633

Income and expenditure impact2017

£’0002016

£’000Interest expense 13 9Remeasurements – impact of any change in assumptions 19 (10)Remeasurements – amendments to the contribution schedule - 142

Assumptions31 March 2017

percent per annum

31 March 2016percent per

annum

31 March 2015percent per

annumRate of discount 1.32 2.07 1.74

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Detailed disclosures relating to pension schemes

The following tables, and narrative, provide the detailed disclosures that relate to the RNIB Retirement Benefit Scheme and schemes related to subsidiary entities. The column headed “Subsidiary charities” refers to Action scheme one and RNIB Specialist Learning Trust (in 2016 it also included Action scheme three and CIB). Together these explain the Group’s pension costs.

a. Scheme assets and liabilities RNIB

£’000

Subsidiary charities

£’000

Total

£’0002017Scheme assets at fair valueEquities 93,000 7,622 100,622Corporate and other bonds - 7,485 7,485Index-linked gilts 65,700 125 65,825Property (including unit trusts) 18,100 1,070 19,170Infrastructure 20,900 - 20,900Standard Life GARS 16,800 - 16,800Legal and General Real and Inflation linked funds 33,200 - 33,200Cash and other (including net current assets) 2,600 91 2,691

Total market value of scheme assets 250,300 16,393 266,693Present value of scheme liabilities (258,862) (19,727) (278,589)

Net pension scheme liability (8,562) (3,334) (11,896)NLB liability (600) - (600)Total pension scheme liability (9,162) (3,334) (12,496)

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b. Scheme assets and liabilities RNIB

£’000

Subsidiary charities

£’000

Total

£’0002016Scheme assets at fair valueEquities 73,500 6,490 79,990Corporate and other bonds - 6,614 6,614Index-linked gilts 55,400 - 55,400Property (including unit trusts) 17,600 1,133 18,733Infrastructure 18,700 - 18,700Standard Life GARS 16,700 - 16,700Legal and General Real and Inflation linked funds 26,300 - 26,300Cash and other (including net current assets) 1,000 93 1,093

Total market value of scheme assets 209,200 14,330 223,530Present value of scheme liabilities (201,005) (17,288) (218,293)

Net pension scheme asset/(liability) 8,195 (2,958) 5,237NLB liability (633) - (633)Total pension scheme asset/(liability) 7,562 (2,958) 4,604

101

c. Analysis of charge to the SoFA RNIB

£’000

Subsidiary charities

£’000

Total

£’000Year to 31 March 2017Current service cost 3,663 106 3,769Interest on net defined benefit liability/(asset) (326) 111 (215)Administration expenses 529 63 592

Expense recognised in SoFA 3,866 280 4,146Year to 31 March 2016Current service cost 4,011 547 4,699Interest on net defined benefit liability/(asset) (485) 120 (365)Administration expenses 406 - 406

Expense recognised in SoFA 3,932 667 4,740

The above service cost excludes any RNIB contributions paid to the defined contributions section of the Scheme.

RNIB contributed to the Scheme at the rate of 12.5 percent of pensionable salaries. These rates include the cost of death in service insurance cover. During the year RNIB contributed £3,525,000 (2016: £3,476,000) to the Scheme, and in the next year RNIB expects to contribute significantly more due to the impact of the actuarial valuation at 31 March 2017. In addition, RNIB, RNIB Charity and Action share the administrative costs of the Scheme. From 1 July 2010 under the RNIB salary sacrifice arrangement employer contributions and service cost include the member salary sacrifice contributions while member contributions are shown as £nil. RNIB also makes contributions to a number of other pension schemes including the Teachers’ Pension Scheme. The Teachers’ Pension Scheme is a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers’ Pension Scheme is an unfunded scheme.

Contributions on a “pay-as-you-go” basis are credited to the Exchequer under arrangements governed by the Superannuation Act 1972. RNIB made contributions to the Teachers’ Pension Scheme for 24 employees (2016: 22) totalling

102

£130,000 (2016: £148,000). In addition, Action made contributions for two employees totalling £9,282 (2016: one employee totalling £7,000) to the Teacher’s Pension Scheme.

d. Analysis of actuarial gains and losses RNIB

£’000

Subsidiary charities

£’000

Total

£’000Year to 31 March 2017Asset gains arising during the year 36,433 1,858 38,291Liability losses arising during the year (52,692) (2,349) (55,041)

Total actuarial loss (16,259) (491) (16,750)Year to 31 March 2016Asset losses arising during the year (9,031) (290) (9,321)Liability gains arising during the year 5,086 1,073 6,159Release of liability on Wiltshire County Council

- 447 447

Total actuarial (loss)/gain (3,945) 1,230 (2,715)

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

e. Actuarial assumptions 2017RNIB

percent

2016RNIB

percent

2017Subsidiary

charitiespercent

2016 Subsidiary

charitiespercent

Discount rate 2.45 3.40 2.20 - 2.60 3.30-4.00Inflation assumption (RPI) 3.15 2.90 3.20 - 3.30 2.80-3.00Inflation assumption (CPI) 2.15 1.90 2.00 - 2.30 1.70-2.40Rate of increase in salaries 3.15 2.90 3.75 - 4.30 2.70-4.15

Rate of increase in pensions paymentsPre 1 July 2010 – 5 percent p.a. cap

2.95 2.75 -

Post 30 June 2010 – 3 percent p.a. cap

2.20 2.10 1.75-2.35 1.70-2.40

Rate of increase in deferred pensionsPre 1 July 2010 – 5 percent p.a. cap

3.15 2.90 -

Post 30 June 2010 – 3 percent p.a. cap

3.00 2.90 3.30 1.70-3.00

For the RNIB scheme the mortality assumptions are based on standard mortality tables which allow for future mortality improvements. The assumptions are that a member currently aged 60 will live on average for a further 27.6 years (2016: 27.5 years) if they are male and for a further 29.6 years (2016: 29.5 years) if they are female. For a member who retires in 2037 at age 60 the assumptions are that they will live on average for a further 28.6 years (2016: 28.5 years) after retirement if they are male and for a further 31.3 years (2016: 31.2 years) after retirement if they are female. For schemes offered by the subsidiary charities, for current pensioners, their life expectancy beyond the

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pensionable age of 65 ranges between 23.1 years if they are male, and 25.8 years if they are female. For future pensioners, their life expectancy beyond the pensionable age of 65 ranges between 25.3 years if they are male and 28.1 years if they are female.

f. Changes to the present value of the defined benefit obligation

RNIB

£’000

Subsidiary charities

£’000

Total

£’000As at 1 April 2015 200,210 18,478 218,688Current service cost 4,011 173 4,184Interest expense on defined benefit obligation 6,725 571 7,296Contributions by scheme participants 126 27 153Actuarial gain on scheme liabilities (5,086) (1,073) (6,159)Net benefits paid out (4,981) (888) (5,869)As at 31 March 2016 201,005 17,288 218,293Current service cost 3,663 167 3,830Interest expense on defined benefit obligation 6,753 532 7,285Contributions by scheme participants 113 27 140Actuarial loss on scheme liabilities 52,692 2,349 55,041Net benefits paid out (5,364) (636) (6,000)

As at 31 March 2017 258,862 19,727 278,589

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g. Changes to the fair value of scheme assets during the year

RNIB

£’000

Subsidiary charities

£’000

Total

£’000As at 1 April 2015 212,806 14,604 227,410Expected return on scheme assets 7,210 451 7,661Contributions by the employer 3,476 426 3,902Contributions by scheme participants 126 27 153Actuarial loss on scheme assets (9,031) (290) (9,321)Net benefits paid out (4,981) (888) (5,869)Administration costs incurred (406) - (406)

As at 31 March 2016 209,200 14,330 223,530Expected return on scheme assets 7,079 485 7,564Contributions by the employer 3,368 329 3,697Contributions by scheme participants 113 27 140Actuarial gain on scheme assets 36,433 1,858 38,291Net benefits paid out (5,364) (636) (6,000)Administration costs incurred (529) - (529)

As at 31 March 2017 250,300 16,393 266,693Actual return on scheme assets2016 (1,821) 161 (1,660)2017 43,012 2,343 45,355

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24. Group commitmentsa. CapitalAt the year-end, RNIB had no outstanding commitments (2016: £nil). At the year-end Action has outstanding capital commitments amounting to £nil (2016: £88,805). At the year-end, no other subsidiary entities have any outstanding commitments (2016: £nil).

b. Operating leasesAt the year-end, the Group had the following annual commitments amounting to £3,069,000 (2016: £4,831,000) under non-cancellable operating leases.

2017£’000

2016£’000

Land and buildingsExpiring within one year 563 897Expiring between two and five years 1,410 2,154Expiring after five years 663 1,019

EquipmentExpiring within one year 269 376Expiring between two and five years 164 384Expiring after five years - 1

Total 3,069 4,831

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25. Contingent assetsRNIB has entered into a sale and development agreement with Countryside Properties (UK) Limited relating to land and buildings at Redhill College, Redhill, Surrey owned by RNIB. Over the period to May 2021, RNIB will receive profit share cash payments of at least £5.5million, 25 residential dwellings, a community hub, and the refurbished Tudor House. The construction value of the buildings is estimated at £9.5million. In return, the developer will be given land for the construction and sale of 77 private dwellings. The net book value of the Redhill land and buildings at 31 March 2017 is £3.5million. The accounting recognition of this transaction will take place over the period as individual properties are handed over and profit share cash is received.

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26. Grants receivableDuring the year, RNIB received a number of grants and other funding resources, which are required by the donors to be shown in our annual financial statements.Source Purpose £’000Big Lottery Fund

Basic Online Skills - Online Today 2,159Bright New Futures - Future In-sight 204Connecting Older People - Looking Forward 91Empowering Young People - Realise 99Supporting Families - Family Insight 134Investing In Communities - Looking To The Future 174Investing in Communities - IRISS 128Reaching Communities - Optimeyes 192People and Places - All Wales Welfare Rights Service for People with Sensory Loss

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Investing in Communities - Advice Plus 78Reaching Communities - Trainee Grade Scheme: Extending the Reach

48

Reaching Communities - Talk and Support: Supporting our Volunteers through Mentoring

44

Reaching Communities – Living with Sight Loss 47Reaching Communities – Big Skills Pilot 159Reaching Communities – Being There When it Matters Most

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Reaching Communities – BME Volunteering and Self Help Phase 2

40

Big Lottery Fund – The Wildlife Trusts

Vision England 136

Heritage Lottery Fund Your Heritage - CultureLink SE 106

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Our Heritage - Museums in Focus 1European Social Fund Eye Work Too 136Allergan * Eye Health Projects 45Alliance Scotland Self Care Management Impact Fund -You Care

Eye Care33

Bayer * Eye Health Projects 79Children & Young People's Strategic Partnership, Health and Social Care Board

Family Support Service 64

Parenting, Education and Support 11Department of Health HSCVF - Community Eye Health Champions 136

IESD - EIRECS Early Intervention and Rehabilitation in Eye Care Services

100

IESD - Electronic Certificate of Visual Impairment (eCVI)

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IESD – Talking Therapies 44IESD – Living With Sight Loss 3

HMRC Get Your Tax Right 150NHS Fife Carers Fund Carers Information Strategy Funding - RNIB Bridge

to Vision 201514

NHS Fife Carers Fund Carers Information Strategy Funding - RNIB Carers Café 2015

4

Northern Ireland Executive – United Youth Programme

Youth Works 1

Scottish Government See Hear Strategy Funding 50Shared Care Scotland Better Breaks – RNIB Activate 2016 22Southern Trust Parenting, Education and Support 57

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* Policy on relationships with pharmaceutical companiesRNIB provides services to those with sight problems, works to prevent avoidable blindness, and campaigns for positive change. These functions will not be influenced in any way by our relationship with pharmaceutical companies or by acceptance of grants or sponsorships from them. We will withdraw from any initiative that jeopardises our independence. RNIB will not embark on, or continue with, any sponsorship arrangement or collaborative venture which might damage its independence. Allergan and Bayer and are all pharmaceutical companies.

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27. Events after the reporting period

Group Reorganisation

On 1st April 2017, the majority of the assets and liabilities of Action and most of the assets and liabilities for RNIB Charity were transferred to RNIB Group. The aim of the reorganisation is to better enable RNIB to provide support and services to all of its beneficiaries and to reduce the cost and administrative burden of operating three separate charities.

The only Action activity and asset not transferred to RNIB on 1st April was the Lauriston Hotel, which was sold as a going concern on 5th April 2017.

RNIB Charity is being transferred to RNIB in two stages. All assets and liabilities (other than certain registered and regulated care and education services) were transferred on 1st April 2017. The remaining services will be transferred once all regulatory consents have been obtained from the Care Quality Commission, Ofsted and the Care Inspectorate in Scotland.

The transfer had certain pension implications, which are outlined below.

The employees of Action were transferred under TUPE to RNIB Group and as a consequence, Action ceased to have any employees. Action participates in two group defined benefit schemes: the RNIB Retirement Benefits Scheme (RBS) which has RNIB as the principal (and also a participating) employer and five individual Trustees and the Action for Blind People Final Salary Scheme (ABPFSS). The ABPFSS, the Trustees of which are Verity Trustees - a trustee company operated by TPT (formerly the Pensions Trust) - has only two active employees/members. TPT is responsible for the operation and administration of ABPFSS.

Where a participating employer in a multi-employer defined benefit pension scheme which has a funding deficit ceases to have any employees, a debt under Section 75 of the Pensions Act 1995 is triggered. As a result, the portion of the deficit/liabilities relating to that participating employer must either be paid by that participating employer or a provision made to reallocate the obligation to pay the deficit/liabilities amongst the remaining participating employers through one of a number of Pensions Regulator approved arrangements. One such arrangement is referred to as a Flexible Apportionment Arrangement (FAA).

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An FAA is a legal deed to which a scheme’s Trustees and employers are parties. For the Trustees to agree and sign an FAA, they must be satisfied that the strength of the financial covenant of the remaining employers is not materially adversely affected by the merger/cessation event.

RNIB and the Trustees of the RBS have agreed to an FAA which was signed on 21 July 2017.

Although the ABPFSS was a single employer scheme, the cessation of Action employment for the two members still gives rise to a S75 debt. In order to resolve this, the ABPFSS has been converted into a multi-employer scheme and an FAA prepared. This FAA was signed by Verity Trustees, RNIB and ABP on 31 July 2017.

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Trustees’ Report (continued)

Thank you to our supporters, partners and volunteers

This year, our supporters and volunteers helped us raise £77.5 million. Without them, we wouldn’t have been able to deliver life-changing services to our customers and raise awareness of sight loss.

Our partnerships help us achieve more for blind and partially sighted people. They support our work by providing time and expertise. They enable us to achieve much greater impact by working in new and innovative ways, building capacity, and driving forward work to make sure customers can access the support they need.

We received £41.7 million in gifts from our generous supporters who remembered us in their Will. Much of our work is supported by gifts in Wills, so we are hugely grateful for all those who have chosen to support us in this way, allowing us to continue with our vital work. Their generosity will enable us to reach the increasing number of people with sight loss now and in years to come.

We’re grateful to our army of over 5,000 volunteers who help us to deliver vital services and who are involved with us in many different ways across the UK. Volunteers have never been more important in helping us to make every day better for blind and partially sighted people.

To all our supporters, partners and volunteers – thank you so much for making every day better for people with sight loss.

We’re honoured to have the support of our Patron Her Majesty The Queen. We're indebted to our President Dame Gail Ronson DBE, and to our Vice Presidents, listed on page 120

We would also like to thank our RNIB Ambassadors for their ongoing support:

Booker Prize FoundationMr Gerald Davidson

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Mr and Mrs Paul PhillipsMr and Mrs David RandallMr and Mrs David GreenMr James HendersonMr and Mrs Nathan KirschSir Sol KerznerDr and Mrs Samad MunshiMr and Mrs Alastair StoreyMr Chris ThomasMr and Mrs Bernard KantorBrian and Joan BrackpoolMr and Mrs Oliver ChristofMr Graham Edwards and Ms Georgina BlackMr and Mrs Derek LovelockMs Heather MillsMr and Mrs Iain ParhamMr and Mrs Paul PolmanMr Ian Rosenblatt OBEMrs Cheryl RouxMr and Mrs Graeme ShanklandMr and Mrs Baljit ShergillThe Steinberg Family Charitable Trust The BAND TrustThe Lady Wolfson of Marylebone

And also those Ambassadors who wish to remain anonymous.

Thank you to the many individuals, companies, trusts and public bodies that have supported us this year and made our work possible. In particular, we would like to thank:

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AA Sinclair Henderson TrustAda Hillard Charitable TrustAgnes Hunter Charitable TrustAIGAllergan UK The Ampelos Trust

BThe Band TrustB & P Glasser Charitable TrustBayer PlcBBC Children in NeedBeatrice Laing FoundationBernard Sunley Charitable TrustBig Lottery FundBrian Mercer Charitable TrustBrownlie Charitable TrustThe Bamford Charitable Foundation

CCAF Grants FundCarmen Butler Charteris Charitable TrustThe Catherine Cookson Charitable TrustCecil Rosen FoundationCharles & Jane Allen Memorial FundChildren & Young People's Strategic Partnership, Health and Social Care Board

DDepartment of Health

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DK books

EE C Sosnow Charitable TrustEdith Lilian Harrison 2000 FoundationEdmond J. Safra FoundationEuropean Social Fund Disability Employment Service Eveson Charitable Trust

GThe Garfield Weston FoundationThe Gerald Ronson FoundationThe Gosling Foundation Ltd

HHeritage Lottery Fund Her Majesty's Revenue and CustomsThe Hobson CharityHugh Fraser Foundation

IInman Charity Trustees

JJ K Stirrup Charitable TrustJack Simmons Will TrustJane Hodge FoundationJohn Scott Trust

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KKathleen Smith Foundation

LLeslie Mary Carter Charitable TrustThe Linbury TrustLoppylugs and Barbara Morrison Charitable Trust

MMrs Joan Cremiu-Javal's TrustMyristica Foundation

NNHS Fife Novartis Pharmaceuticals UK LTD

PPears Foundation

RThe Roan Charitable TrustRobertson TrustRoger de Haan Charitable Trust

SSandra Charitable TrustScottish Government ShareGiftSimmons and SimmonsSimplyHealth

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Southern TrustSpecsavers

TThe Tabor FoundationThompson Family Charitable Trust

WWhite Top FoundationThe Wolfson FoundationWT Mattock Charitable TrustWaitrose

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Who’s who at RNIB

Patron, President and Vice-Presidents

PatronHM The Queen

PresidentDame Gail Ronson DBE

Vice PresidentsSir John Beckwith CBEThe Rt Hon. the Lord BlunkettRichard BrewsterProfessor Ian Bruce CBEJeremy BullHaruhisa HandaEuclid HerieLady (Joan) Jarvis CBEPenny Lancaster-Stewart, Lady StewartLord Low of Dalston CBE*Sir Trevor Pears CMGSir Mike RakeDr Dermot SmurfitSir Rod Stewart CBEThe Rt Hon Earl of StocktonLord (Julian) Fellowes of West Stafford

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Honorary officersKevin Carey MA (Cantab) MA (Kings College, London) – RNIB Group ChairEleanor Southwood MA (Oxon) – RNIB Group Vice-Chair Alan Tinger FCA CCMI – RNIB Honorary Treasurer

Chief Executive Officer and members of Executive Board(From 1.4.2016 to 31.12.2016)

Chief Executive OfficerLesley-Anne Alexander CBE MSc (left 30.9.2016)

Acting Chief Executive OfficerSally Harvey BA (Hons) (from 1.10.2016)

Chief Operating Officer Sally Harvey BA (Hons) (from 1.8.2016 to 30.9.2016)

Group Director, FundraisingWanda Hamilton BA (Law) MInstF (left 31.12.2016)

Group Director, PeopleCorinne Mills Chartered FCIPD

Group Director, ResourcesRohan Hewavisenti M.Eng ACA (left 31.12.2016)

Management Director, Engagement, RNIB CharityFazilet Hadi BA (Hons)

Managing Director, Places, RNIB Charity121

Sally Harvey BA (Hons) (Until1.8.2016)Jayne Frampton (from 1.8.2016 to 31.12.2016)

Managing Director, Solutions, RNIB CharityNeil Heslop OBE LLB (Hons) MBA CIM (Dip.M) (left 31.8.2016)Jon Petty (from 1.09.2016 to 31.10.2016 )

Chief Executive, Action for Blind PeopleMiriam Martin (until 31.3.2017)

Chief Executive Officer and members of Executive Board(From 1.1.2017)

Acting Chief Executive OfficerSally Harvey BA(Hons) (from 1.10.2016 )

Deputy CEO and Advocacy Director Fazilet Hadi BA (Hons)

Services Director (formally effective 1.4. 2017)Miriam Martin

Managing Director, SolutionsScott Lynch (from 13.3.2017)

Relationships Director Dr Sophie Castell (from 1.7.2017)

Corporate Services DirectorCorinne Mills Chartered FCIPD

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Professional advisersIndependent AuditorsPricewaterhouseCoopers LLP1 Embankment PlaceLondonWC2N 6RH

Investment advisersAON Hewitt Ltd3 The EmbankmentSovereign StreetLeedsLS1 4BJ

Property advisersKnight Frank55 Baker StreetLondonW1U 8AN

SolicitorsFarrer & Co66 Lincolns Inn FieldsLondonWC2A 3LH

Actuary advisersTowers Watson21 Tothill StreetLondonSW1H 9LL

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BankersRoyal Bank of Scotland plcMarylebone Road and Harley StreetBranch10 Marylebone High StreetLondonW1A 1FH

Board of TrusteesMembers of the Board of Trustees during the financial year, together with a brief biography of each individual, are listed below. The Board is made up of 12 Trustees. The number in brackets after each name represents attendance at Board of Trustee meetings during 2016/17 of those they were eligible to attend. Full membership details of RNIB’s committees are available from the Governance and Business Support team at RNIB’s Judd Street address. 80 percent of the Board are blind or partially sighted.

Kevin Carey - RNIB Group Chair (6 of 6) Kevin Carey is serving his third term as RNIB Chair since his initial election in 2009; he was Vice Chair from 2000 to 2009. Kevin also chairs the Governance and Remuneration Committees. He is the Chair of the World Braille Council and a member of the ICEVI Executive Committee. Kevin, who served as Director of digital inclusion charity humanITy from 1997 to 2015, is now a freelance IT accessibility consultant with Atos and works for the marketing team of Orbit Research. Kevin is a Reader in the Church of England and has published 13 books on Christian subjects. He is a committee member of the Gustav Mahler Society of the UK; and sings in two choirs.

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Eleanor Southwood - RNIB Group Vice-Chair (5 of 6) Ellie became a Trustee in 2010. Following two years as RNIB Vice-Chair - External Affairs, she became Vice-Chair of the then newly constituted RNIB Group Board in July 2014. Ellie’s career spans the public, private and non-profit sectors. She is currently Cabinet Member for environmental and highways services at the London Borough of Brent. Her previous experience is in senior recruitment and organisational change. Ellie’s commitment to the RNIB Group comes from personal experience, having been born with no useful sight. She is passionate about improving opportunities for blind and partially sighted people, particularly in overcoming barriers to employment and involvement in civic life.

Alan Tinger – RNIB Group Honorary Treasurer (5 of 6) Alan is a Chartered Accountant (FCA) and Companion of the Chartered Management Institute (CCMI). He is currently Chair of LOC Central Support Unit, Non-Executive Director /Consultant of the Federation of (Ophthalmic and Dispensing) Opticians, a Member of the Optical Confederation Leaders Group and a Trustee of Eyecare Trust. His interests outside the optical sector include being Chair of a Housing Association. Alan’s previous appointments include directorships of listed companies, including a major opticians group and financial consultant to the General Optical Council, the regulator of registered opticians. Alan is also Chair of RNIB's Audit and Risk Committee and Investment Committee and he was a Trustee of Action for Blind People until 31 March 2017.

Margaret Bennett (5 of 6) Margaret is in her third term of office as a Trustee, having first been appointed to the Board in 2010. A Chartered Accountant by profession, her portfolio of work includes Group Finance Director of Good Things Foundation and acting as a mentor and coach for voluntary sector leaders. Previous roles included Deputy Chief Executive of the Learning and Skills Improvement Services, a senior Civil Servant and Chief Executive of the National Library for the Blind. She lives in Sheffield and is partially sighted. She was Chair of RNIB’s Places Standing Board until its dissolution in March 2017 and continues to be a Trustee of RNIB Charity.

Derek Child (6 of 6)Derek has been blind for 40 years having lost his sight in his late 20’s resulting from prolonged childhood illness. Derek entered higher education as a mature student, where he eventually gained a postgraduate degree in Advanced Social Policy plus a social work qualification. His career was principally in higher education at the Open University and he retired as a

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senior manager in 2010. Derek recognised the crucial importance of further and higher education in making disabled people more equal and employable, and he campaigned for over 35 years for improved support students in post 16 education and training. Derek has wide experience of working with the voluntary sector in various capacities both nationally and locally. He is a keen advocate of user-led governance in ensuring that charities focus strategy on meeting the needs of their beneficiaries. Derek currently serves as Co-Chair of the RNIB Services Steering Group and continues to be a Trustee of RNIB Charity.

Simon Finnie (4 of 6) Simon is in his first term of office as a Trustee, having been appointed to the Board in 2014. Simon is the Chair of RNIB’s Solutions Delivery Board, which includes our technology, retail and reading services, and was a Trustee of RNIB Charity until 31 March 2017. He has held a number of senior executive roles across the commercial sector and is currently the Group Strategic Projects Director for Laing O'Rourke, the largest privately owned construction company in the UK. As part of Laing O'Rourke’s senior team, he is responsible for driving strategic improvements across the whole organisation. Simon has over 20 years’ experience across a wide range of sectors. He is married with children and lives in Hertfordshire.

Dr Heather Giles (5 of 6) Heather is in her second term of office as a Trustee, having been re-appointed to the Board in 2014. She was a Trustee of RNIB Charity until 31 March 2017 and was the Chair of RNIB’s Engagement Standing Board until its dissolution in March 2017. Professionally, she has held senior scientific positions in the pharmaceutical industry and has a PhD in Pharmacology. She is currently Chief Scientific Officer for a small pharmaceutical company. Heather has a personal understanding of the challenges facing people with sight loss because she is partially sighted herself and also, even before becoming a Trustee, she was supporting RNIB’s work as a local campaigns volunteer. She lives in London.

Vidar Hjardeng MBE (6 of 6) Vidar was serving his final year as a Trustee in 2016/17 and retired from the Board on 31 August 2017 after many years of service. A broadcast journalist by profession, he is now a consultant with ITV News and has spent much of his career working for the broadcaster nationally and regionally. With personal experience of visual impairment, Vidar is proud of his association with charities who work with and for fellow blind and partially sighted people, including the National Audio Description Association and Vocal Eyes, which he chaired for four years until 2012. Vidar lives in the Midlands.

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Terry Moody (6 of 6) Terry is serving his final term on the RNIB Board after many years of service. With an academic background in economics and finance, he has recently retired from Glasgow University where he was a senior lecturer in economics. He is blind, married with a son and lives in Glasgow.

Dr Mike Nussbaum (5 of 6) Mike joined the RNIB Board in May 2011. He was forced to cut short his career as a research chemist after his eyesight suddenly failed. However, he soon forged a second career in local government and public policy development. He was Chair of Volunteering England from 2002 to 2009. Mike holds a number of other appointments, including as a Trustee of Guide Dogs for the Blind Association, a Trustee of Vision 2020 UK, a Trustee of Shaw Trust and a member of the Equality and Diversity Forum. Mike is a Trustee of Action for Blind People and was Chair until the transfer to RNIB on 1 April 2017.

Keith Valentine (6 of 6)Keith Valentine joined the RNIB Board of Trustees in early 2015. His employment history includes senior leadership roles at Thomas Pocklington Trust and he will step down from the RNIB Board later in the year to take up a new position as CEO of Vision UK. Keith is visually impaired and has spoken widely of his personal experiences in national media channels and at key conferences in the medical and social care sectors. Many generations of Keith's family have had visual impairment and he joined the RNIB Board with a personal and professional commitment to seeking the best deal in both services and opportunities for all people with a visual impairment. Keith is also a Trustee of Action for Blind People, a Trustee of research charity RP Fighting Blindness and a Trustee of his local advocacy charity, Kingston Centre for Independent Living. Keith is a published poet and a lifetime Tottenham Hotspur Fan.

Sandi Wassmer from 01/04/2016 (6 of 6)Sandi Wassmer was registered blind in 2008. She became a Trustee of RNIB Group Board in 2016 and has been a Trustee of Action for Blind People since 2014. Sandi is currently leading the development of digital services at Jewish Care, which includes Jewish Care Interact, a digital hub for older and disabled people, the KC Shasha Centre for Talking News and Books and an ambitious digital engagement strategy around Jewish Care's Karten Centres. Sandi is a passionate thought leader in inclusive design and accessible ICT, as well as a businesswoman, human rights advocate, marketer, writer and

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public speaker. She has worked in a range of commercial organisations throughout her career, as CFO and COO of Universal Studios' SyFy UK TV Channel, COO of Unilever's first dotcom investment and MD of digital agency, Copious.

Independent members of the Audit and Risk CommitteeMichael Barber, Jonathan Blackhurst (from 3 July 2017), Deborah Harris (from 1 April 2017, previously representative of Action for Blind People on the Group Committee), Judith Spencer-Gregson (from 1 April 2017, previously representative of RNIB Charity on the Group Committee) and Frances Teague (until 9 November 2016).

Contact detailsRNIB, Registered Office105 Judd Street, LondonWC1H 9NEt: 020 7388 1266

RNIB CymruJones Court/Crwt Jones, Womanby Street/Stryd Womanby, Cardiff/CaerdyddCF10 1BRt: 029 2082 8500

RNIB Northern IrelandVictoria House, 15-17 Gloucester Street, BelfastBT1 4LSt: 028 9032 9373

RNIB ScotlandGreenside House, 12-14 Hillside Crescent, EdinburghEH7 5EAt: 0131 652 3140

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