RNIB Group annual report and financial statements 2015/16Royal National Institute of Blind People (RNIB) Trustees’ report and the audited consolidated financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

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and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

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

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

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

1

Contents

Chair and Chief Executive Officer introduction 3

Trustees’ strategic reportStructure and objectives 5Our strategy 10Our values 10Growth and change 10Our work 11Financial review 16Fundraising review 19Investment policy 20Reserves policy 22Remuneration policy 23Risk management 23Exposure to price, credit, liquidity and cash flow risk 25Going concern 25Our volunteers 26Employing disabled people 27Engagement with staff 27Health, safety and the environment 28

AccountsIndependent auditors’ report to the Trustees of RNIB 30Consolidated statement of financial activities for the year ended 31 March 2016 33Balance sheets as at 31 March 2016 36Group cash flow statement for the year ended 31 March 2016 38Notes to the financial statements for the year ended 31 March 2016 40Who’s who at RNIB 116

2

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

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

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

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

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

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

3

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

Lesley-Anne Alexander CBE, Chief Executive Officer

Kevin Carey, Chair

4

Trustees’ strategic report

Structure and objectives

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

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

The restructure and amalgamation resulted in the following changes: RNIB country operations in Cymru, Northern Ireland and Scotland, were moved

from RNIB Charity to Action The Helpline and advice service was moved from RNIB Charity to Action All group corporate support service functions are now delivered by RNIB Group Engagement activities were moved from RNIB Charity and Action to RNIB

Group.

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

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

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

5

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

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

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

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

Investments Committee: overseeing the effective investment of funds for RNIB on behalf of the Board. Acting in an advisory role on the effective investment of funds to the Trustees of the RNIB Retirement Benefits Scheme

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

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

Managing Director, Places of RNIB Charity;

Managing Director, Solutions of RNIB Charity;

Chief Executive of Action;

Group Director, Engagement;

Group Director, Fundraising;

Group Director, People;

Group Director, Resources;.

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

6

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

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

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

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

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

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

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

select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments and estimates that are reasonable and prudent

7

state whether FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” has been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

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

Statement of public 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.

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

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

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

8

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 problems. We also work closely with other disability charities on issues of mutual concern. We deliver services in partnership with some societies for blind and partially sighted people, and some of our funding comes from charities and trusts which support our aims.

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

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

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

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

The relationship between RNIB and Action and RNIB Charity is governed through Association Agreements; these were both updated in September 2015. This change has transferred RNIB Charity activities in Scotland, Wales and Northern Ireland to Action, in addition to the Helpline, Advice and Emotional Support Services. The transfer of all residual Central Services from Action to RNIB Group, including Engagement, also took place in September 2015.

9

Our strategy RNIB is passionate about improving the lives of blind and partially sighted people and those at risk of sight loss. Last year, we set out a new five-year strategy and our Group Ambition to make every day better for everyone affected by sight loss.We listened to our customers and defined our Strategic Priorities: being there, so that everyone with serious sight loss gets the practical and emotional support they need to rebuild their lives; supporting people to live independently; influencing society to include blind and partially sighted people; and preventing sight loss.

The priorities are underpinned by six change areas, which are fundamental to how we deliver the strategy and enable us to reach more people: customer engagement, volunteering, involving blind and partially sighted people, partnerships, accessibility and digital. We have set out the standards we want for our customers, and we are embedding standards of accessibility across all our activities and processes. Taking a digital-first approach is vital to enable us to reach more customers efficiently. One of the most exciting advances in 2016/17 will be the development of community-based digital content to support the growth and expansion of RNIB Connect.

Our valuesOur values describe our ethos and drive our behaviours: we are led by blind and partially sighted people; we are collaborative, creative, inclusive and open.

Blind and partially sighted people are at our heart and influence everything we do. Over the past year, we have worked with blind and partially sighted people to shape a new RNIB Group Community, called Connect, which brings together our campaign supporters, our Members and Action Connect. RNIB Connect offers more opportunities for people to connect with one another and makes it easier to find out what is going on across the RNIB Group of charities. To support Connect members, we launched a development programme to prepare blind and partially sighted people for civic leadership opportunities in the voluntary, statutory and commercial sectors.

Growth and changeWe want to reach many thousands more people, tripling the number of customers we serve directly by 2019. This year, our reach has remained at 96,000 customers. We have been working with partners to develop a 'Seamless Service' model for customers. We will implement this in 2016/17 so that customers will be remembered, referrals between and outside the Group will be coordinated, and customer service will be personalised and responsive.

RNIB founded the UK Vision Strategy to improve eye health and eye care services. We are developing partnerships of all kinds to implement the UK Vision Strategy in each country of the UK to achieve the best possible outcomes for blind and partially

10

sighted people. We will continue to build a network of partnerships with local sight loss charities and other partners to enable greater reach into local communities.

Our work

Being there – people losing their sight can rebuild their livesFrom the first diagnosis, everyone affected by sight loss, as well as their families and friends, needs advice and practical and emotional support. We are focused on making sure this service is available to everyone across the UK.

What we have doneWe have worked with clinical commissioning groups, hospitals and ophthalmologists to make the case for sight loss advisers (also known as ECLOs or eye clinic liaison officers). We have conducted research and evaluation to demonstrate the value of eye clinic support services.

Our impactRNIB Group sight loss advisers have supported 19,200 people in eye clinics across the UK, a 10 per cent increase compared to the previous year. The target of 24,900 was not achieved due to slower growth in England, as new posts have been embedded and efforts were focused on protecting the 18 posts that were at risk. The impact of our sight loss adviser service is on target with 83 per cent of customers saying they received all or most of the practical support they needed, and 87 per cent saying they felt more reassured after seeing a sight loss adviser.

Impact we aim to achieve in 2016/17We will work to support the development of new sight loss advice services across the UK. We will test new and flexible ways of working, to reach more people by linking qualified sight loss advisers with trained volunteers, developing volunteer-led peer support groups to provide follow-on support after formal counselling, and working with local partners.

Independence and inclusion Blind and partially sighted people should be able to make informed choices about their lives. Barriers to using mainstream goods and services result in isolation and exclusion. We are raising awareness within communities and 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 have doneHaving someone to talk to when you are feeling worried can really help. Our Helpline provides crucial support, and our professionally trained staff always listen and ensure every individual receives what they need.

11

Our benefits advice makes sure that blind and partially sighted people understand what they are entitled to and have support to claim it.

Our local campaigners have worked hard to persuade local authorities to sign street charters committing to clear streets, so that blind and partially sighted people can get about safely.

Our impact This year, our Helpline answered 213,000 calls and 35,185 letters and emails.

We’ve worked hard to improve our customer satisfaction by reducing caller waiting time: 87 per cent of calls are answered in 20 seconds.

This year, 96,000 people with sight loss used our direct services. This included 36,500 new people. The overall figure has remained static since last year and was under target by 26,000 people.

People rely on our confidential counselling service when they reach breaking point: this year, our sight loss counselling team received 1,395 referrals. This is 17 per cent more than last year.

We have supported 15,300 people with our benefits advice service, exceeding our target by 31 per cent and achieving growth of 24 per cent compared to last year. We identified £19.5million in unclaimed benefits; £2.9million more than last year.

Five local authorities have taken action as a result of our street charters.

Impact we aim to achieve in 2016/17 We will increase our capacity to serve many more customers by delivering a new

'Seamless Service' model. We will develop our digital service by piloting an online counselling service. We will maximise the opportunity provided by the Care Act to campaign for the

provision of vision rehabilitation from local authorities. We will continue our campaign to secure greater accessibility from transport

companies, and to ensure that local authorities keep streets clear.

Giving the best start to children and young people We want every blind and partially sighted child to get the support they need to reach their potential.

What we have doneWe have upheld and improved the excellent quality of our support to children, young people and parents provided by RNIB Pears Centre for Specialist Learning, RNIB Sunshine House School, RNIB College Loughborough and our family services. We have challenged local authorities where education support services are being threatened. We have equipped teachers to support blind and partially sighted learners. Through Load to Learn, a web-based service delivered by RNIB and Dyslexia Action, we offered free access to downloadable resources for schools and

12

colleges. This has helped thousands of students throughout the UK to get access to textbooks in a format that is suited to their needs.

Our impactWe are delighted that every child and young person in our schools and college achieved their individual targets during the last academic year (2015: 94 per cent). We successfully campaigned with parents and other organisations to protect provision of specialist support for children and young people in four areas. Ninety-six per cent of professionals who have accessed our resources say they are better able to support blind and partially sighted learners. We relaunched Load to Learn on a new platform and it’s now called BookShare. Subscribers have grown from 1,369 to 3,477.

Impact we aim to achieve in 2016/17 We will continue the impressive expansion of our BookShare service, supported

by an exciting partnership with Pearson Education, an academic publisher. We will ensure our targeted work on education outcomes is complemented by our

wider work with children and young people, to enable them to achieve their goals in life.

Supporting blind and partially sighted people to develop skills to gain and retain work and to volunteerMany people who lose their sight also fear losing their job. We want more blind and partially sighted people to have the confidence, knowledge and skills they need to get and to keep a job, or to volunteer.

What we have doneWe have trained our sight loss advisers to provide first stage employment advice and to refer people for urgent specialist employment support. Our sight loss advisers have made 261 referrals to our employment service so that people receive the advice they need to keep their job.

We have defined what good employment services look like, and challenged providers who are not working in the best interests of blind and partially sighted job seekers. We have defended the government’s Access to Work scheme.

Our impactThe number of people we’ve supported to gain or retain their jobs has increased from 647 last year to 834 this year. We are delighted that customer satisfaction of our employment service has risen from 53 per cent to 76 per cent.

Impact we aim to achieve in 2016/17 We will develop a new employment support programme that includes building

peer support via our Connect Community. We will invest in providing meaningful work experience opportunities.

13

Creating an accessible worldWe know technology can change the lives of people with sight loss. Our services give people the skills, tools and confidence they need to make the most of technology, so to improve choice and independence in education, employment and leisure.

What we have doneOnline Today is a project funded by the Big Lottery Fund, and is led by RNIB and Action. It will help 125,000 people with sensory loss across the UK to get online. We are working with Action, Action on Hearing Loss, Guide Dogs, Sense, and many others to bridge the digital divide.

Reading is important to everyone and RNIB Talking Books has revolutionised reading for generations of people with sight loss. Since its humble beginnings, eight decades of innovation has made it the biggest and best service of its kind. It brings choice and independence to hundreds of thousands, with books borrowed millions of times. Our library is the largest of its kind in Europe, with 60,000 accessible items in audio, braille and giant print, including more than 23,000 Talking Book titles.

This year, to celebrate 80 years of Talking Books, we made them completely free to borrow. Readers can also choose from more than 200 popular newspapers and magazines, delivered straight to their door or inbox.

We have increased the availability of accessible content through creative partnerships with global players, and developed new audio and video resources to help customers to get the most out of our services.

We have led a consortium of global sight loss agencies to develop an affordable, refreshable braille display. The result is the Orbit Reader 20, which was launched in San Diego in March. The first RNIB Orbit Reader is expected to be sold in the UK in October for less than £400.

We campaign for accessible information, and we have maintained pressure on government services to ensure that people with sight loss are not excluded, as delivery of key government services moves to digital by default.

Our impactThis year, RNIB Library participated in World Book Day for the first time. One hundred and sixty-six audio and braille books were given away to children across the UK – titles that would not have been available in accessible formats otherwise.

Subscribers to our Reading Choices grew by eight per cent to 42,000 this year. This included 5,000 new customers to our Talking Books service following a landmark decision to make talking books free to borrow.

14

We launched www.rniblibrary.com, which has had 23,000 visitors, and a third of all visitors have been new to us. We dispatch 20,000 Talking Books and 2,000 volumes of braille or giant print every week. This is a seven per cent increase compared to last year.

RNIB Overdrive customer numbers quadrupled to 2,605, who digitally downloaded nearly 60,000 talking books.

Online Today has supported 28,080 people with sensory loss to develop skills and confidence to get online.

After years of campaigning, the NHS Accessible Information Standard became mandatory in England from June 2016. It requires all healthcare providers to provide information in a format that their patients can read. This new standard can deliver a step change in patient communication across the NHS, enabling blind and partially sighted people to manage their health with the same privacy that sighted people take for granted.

Impact we aim to achieve in 2016/17We will continue to help people to make the most of advances in technology, so no one is left behind. Our customers want us to offer more information, support and training about technology. We will embed our Online Today philosophy into frontline services, such as sight loss advisers and employment, so that we reach people with sight loss earlier and help them to understand how technology can assist them.

We will continue to work with global technology providers to ensure that more of their products and services are fully accessible from launch.

We will use the introduction of the Accessible Information Standard to launch a campaign called ‘Need it to read it’ in order to help people to notify their GP about the reading format they require.

Prevention – Fewer people lose their sight Raising awareness of sight loss is critical if more people are to take responsibility for eye health. We support people to cope with sight loss by increasing their knowledge and understanding of their respective eye conditions, and we campaign for fair access to sight-saving treatment.

What we have doneWe have 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.

15

We continued to challenge Clinical Commissioning Groups (CCGs) that do not comply with their legal obligation to introduce new treatments within three months of approval from National Institute for Health and Care Excellence or Scottish Medicines Consortium.

We influenced eye care commissioning plans produced by CCGs, by sharing the patients’ perspective on eye care provision for glaucoma, cataract and age-related macular degeneration.

Our Living Well with Diabetes initiative has improved the support received by people living with diabetes, helping them to manage their condition to prevent sight loss. We have improved the information provided to people with diabetic eye disease.

Our impactThe eye health information pages on our website have seen a 30 per cent increase in users since last year, with over one million unique users.

We have improved eye care services in three eye clinics, shared this learning across eye clinics in the UK, and improved eye care services in 33 CCG areas.

We supported the approval of new treatments for diabetic macular oedema, which will help approximately 218,000 patients.

We shared learning with every diabetic retinopathy screening service across the UK, with 17,800 health practitioners (GPs, practice nurses and optometrists) (target: 20,000) to help them to support people with diabetes to manage their condition. We are delighted that our work to empower people with diabetes to prevent sight loss through self-management has won the prestigious Quality in Care Diabetes 2015 Award for best initiative supporting self-care.

Impact we aim to achieve in 2016/17We will campaign to reduce waiting times for eye clinic patients by presenting innovative ways to improve capacity within eye clinics.

We will develop Eye Health Champions to increase the uptake of eye examinations and diabetic retinopathy screening in three of the most deprived communities in the UK.

Financial review2015/16 is the second year of RNIB Group’s new strategy. This has been based around our priorities: Being there, Independence, Inclusion and Prevention. The Group Statement of Financial Activities (SoFA) reflects our strategy.

Following the restructure of RNIB Group and, in particular, the creation of RNIB Charity, the vast majority of charitable income is now generated by the subsidiary

16

charities. RNIB remains responsible for generating income from fundraising activities. In preparing the financial statements, income generated in subsidiary charities is treated as restricted income for the Group even if it is unrestricted in the subsidiary charity. This has resulted in a large switch between unrestricted and restricted charitable income at Group level, even though the underlying nature of the income is unchanged.

MPH Accessible Media Limited became part of RNIB group on 1 October 2015. The work undertaken by the company to make information available in accessible formats to blind and partially sighted people is similar to the work taking place in RNIB Charity. With effect from 1 December 2015, all staff and net assets transferred to RNIB Charity, with the exception of the leasehold properties, which were transferred to RNIB Group. Bringing MPH into RNIB Group has significantly enhanced our ability to reach more blind and partially-sighted people and has made a bigger difference to their lives. The financial impact of this change was immaterial in the year.

Group income has increased by £1.4million to £114.5million (2015: £113.1million). This is due to the increase in legacies, although this has been partially offset by the reduction in service income.

In 2015/16, 59 per cent (2015: 57 per cent) of our overall income came from fundraising activity (including 33 per cent, or £37.4million, from legacies; 2015: 30 per cent or £34million), 40 per cent (2015: 41 per cent) from service-related income and one per cent (2015: two per cent) from other sources.

Donations reduced slightly to £30.4million from £30.8million and Legacy income increased from £34million to £37.4million. The timing of income from legacies is notoriously difficult to estimate despite the sophisticated tools we use. However, the level for 2015/16 has reverted to the five-year average following the drop in 2014/15.

Despite the impact of government cuts, we have managed to maintain service income levels; the reduction of £0.8million is due to the decision to provide the Talking Books service free-of-charge to users. We endeavour to be constantly and consistently more effective whilst ensuring we are delivering to meet the needs of blind and partially sighted people.

Group resources expended were split between supporting our four strategic priorities of Being there (five per cent) (2015: six per cent), Independence (66 per cent) (2015: 68 per cent), Inclusion (nine per cent) (2015: seven per cent) and Prevention (one per cent) (2015: one per cent).

Total resources expended have increased by £3.5million to £123.1million (2015: £119.6million) with £2.4million of the increase spent on charitable activities. What we did with these resources is explained in “Our work in 2015/16” earlier in this

17

report. The costs of raising funds increased from £21.6million to £22.7million, but remained static as a percentage of total expenditure (18 per cent both years).

RNIB’s operational subsidiary charities are RNIB Charity, Action, CIB, RNIB Specialist Learning Trust and Bucks Vision (subsidiary of Action). These charities contributed total external income of £40.1million, almost all of which relates to charitable activities.

The two subsidiary trading entities of the Group (RNIB Enterprises Limited and RNIB Services Limited) contributed £274,000 (2015: £500,000) to the RNIB Group through gift aid and share of profit, and two subsidiary charities (National Library for the Blind and Blind Centre for Northern Ireland) gifted £428,000 to RNIB.

The increase in accrued legacies (£1million) and accrued income (£0.6million) together with cash in transit of £2.1million following the disposal of investments at the end of March has resulted in a significant increase in the year end debtor position (£5million). The £5million increase in short term creditors is largely due to the £3.8million increase in short term loans.

The RNIB property at Bakewell Road was put up for sale in March 2016 and as a result it is now held as land and property for sale within fixed assets at a net book value of £4.9million.

On 25 August 2016 Action announced the strategic decision that it intends to stop running its three Hotels during the next six months. The three hotels require an annual subsidy in order to run them and are each in need of extensive repair and improvement work. Action owns the freehold interest of the Lauriston Hotel in Weston-super-Mare and the net book value of the land and building is £0.3million at 31 March 2016. Action leases the Cliffden Hotel in Teignmouth and the Windermere Manor Hotel in Cumbria from Guide Dogs with the annual peppercorn rentals charged to the SoFA. Direct income and expenditure relating to the hotels in 2015/16 was £2.6million and £2.7million respectively. Closure costs, including redundancy and dilapidations, are estimated at £1.1million.

General reserves disclosed in the Group balance sheet at the end of the year stood at £22.8million (2015: £23.2million). However, the combined general reserves of RNIB and Action amount to £27.8million (RNIB: £22.8million; Action: £5million), which is favourable to our reserves policy (see reserves section).

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.

18

Fundraising reviewTotal voluntary income for 2015/16 amounted to £67.8million (2015: £64.7million).

The increase compared to 2014/15, is due to strong support from legacy givers. Donations in 2015/16 are in line with the previous year. We are pleased to have achieved this against the background of the current external economic climate and a challenging media environment.

Gifts in kind included in voluntary income amount to £0.3million (2015: £0.3million) for pro bono work from various firms of lawyers, and £0.3million (2015: £0.2million) for advertising. There is also £4.1million (2015: £3.1million) of Lottery and statutory grants within income from charitable activities, which is actively supported by our fundraising team.

On 1 April 2009, Action became a subsidiary of RNIB and an association agreement was put in place to govern the relationship. Under the terms of that agreement RNIB has taken over the responsibility for the fundraising operation of Action in return for a grant. The grant in 2015/16 amounted to £8.4million (2015: £5.5million). The net proceeds of this fundraising activity have been restricted within these financial statements for the benefit of Action. The increase year on year is due to the adoption of a group general reserves policy to ensure we use our resources as effectively as possible to support blind and partially sighted people.

On 1 July 2014 RNIB set up RNIB Charity as a wholly controlled subsidiary and an association agreement was put in place to govern the relationship. Under the agreement RNIB has responsibility for the fundraising operation of RNIB Charity in return for a grant. The grant in 2015/16 amounted to £11.9million (2015: £10.4million). The net proceeds of this fundraising activity have been restricted within these financial statements for the benefit of RNIB Charity.

Fundraising costs for 2015/16 amounted to £22.7million (2015: £21.6million). The fundraising costs are net of an internal recharge in the sum of £5.4million (2015: £4.7million) for costs incurred in raising public awareness about matters relating to sight loss. These costs have been included within the costs 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 our costs.

RNIB fundraising practices adhere to all regulatory and best practice guidelines. A number of significant changes to the regulatory framework are in progress as a result of the Etherington Review of charitable fundraising in the UK, as well as the introduction of the EU General Data Protection Regulation.

19

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

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 per cent in equities, 30-40 per cent in bonds and 30-40 per cent in cash. This strategy had been developed with the advice of Hewitt Associates and had taken into account the nature of RNIB’s business as reflected in its business plans. At 31 March 2016, the allocation of investments is 13 per cent in equities, 85 per cent in bonds and two per cent in cash. 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 disposal schedule was such that the allocation of holdings at 31 March 2016 does not represent the allocations during the year.

Where relevant, it’s our aim to perform an annual desk top review of Investment Managers and to meet them as appropriate.

RNIB has mandates with Legal & General and Foreign & Colonial (F&C), and fee structures for our significant holdings are:

Foreign & Colonial Ethical Bond Fund Share Class 2 – 0.50 per cent per annum.

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

annum;

20

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

The Group investments include a further £48,000 (2015: £49,000) relating to CIB and £6,472,000 (2015: £6,536,000) to Action. Other than the investments of Staffordshire Blind, all Action’s funds are now managed by Legal & General, using pooled funds to match the allocation set out in their investment strategy, and their performance is closely monitored against, and closely matches, publicly available market benchmarks. The investments of Staffordshire Blind are managed by Investec Wealth and Investment.

RNIB investment performanceThe funds in which the investments are held, are measured against agreed benchmark indices for each relevant holding. The performance of the investments held by RNIB in its own right at 31 March 2016 against each fund’s benchmark index is detailed in the following table.

Value at 31 March 2016

Actual holding

Target holding

+/- Performance in year to 31 March 2016

£’000 Per cent Per cent Per cent FundPer cent

BenchmarkPer cent

+/-

Cash 105 2.0 40.0 -38.0 0.5 0.4 +0.1Corporate bonds

7,268 85.0 35.0 +50.0 0.7 0.5 +0.2

UK equities 1,135 13.0 25.0 -12.0 4.6 -3.9 +8.5Total 8,508 100.0 100.0 0.0

As our UK equities are invested in an ethical fund, the stocks in the index are screened before being accepted into the fund.

Cash deposits are placed on behalf of the RNIB Group including the subsidiary Charities by their respective banking organisations. At 31 March 2016, the Group’s cash and short-term deposits stood at £4.3million (2015: £3.3million). During the year, the group interest received on cash and short-term deposits was £1,000 (2015: £8,000) of which £1,000 (2015: £1,000) related to RNIB. RNIB’s short-term deposit income all relates to funds placed overnight and the average return made was 0.1 per cent (2015: 0.1 per cent).

At 31 March 2016, the unrealised loss on the Endowment Funds was £156,000 (2015: £405,000 gain) and the breakdown can be found in note 22.

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.21

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.

Reserves policyRNIB 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 £18.6million to £26.8million for the combined general reserves based on the current analysis of risk. RNIB Group’s combined general reserves were £27.8million (RNIB: £22.8million; Action £5million) at 31 March 2016 (2015: £27.7million; RNIB: £23.2million; Action £4.5million). The Trustees have agreed upon a business plan in support of the strategy which aims to keep reserves within the reserves policy range during the new strategy period. This includes a planned utilisation of combined general reserves in 2016/17 of £4.5million.

The actuarial valuations of RNIB Group Pension Schemes at 31 March 2016 for the purposes of FRS102 showed a net surplus of £4.6million (2015: £7.6million), which is added to the level of general reserves as required by FRS102. The corresponding asset does not result in an immediate cash flow impact on RNIB. Contributions to the scheme are met through planned income. The level of general reserves has been calculated excluding the FRS102 pension surplus.

At 31 March 2016, RNIB held designated funds totalling £43million (2015: £50.2million). Of this, £40.4million (2015: £45.2million) relates to properties and £2.6million (2015: £1.6million) relates to other fixed assets. Both of these are used directly in undertaking RNIB’s objectives. During the year, the trustees took the decision to close all other Group designated reserves. The fund definitions and full details of in-year movements can be found within note 22.

22

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 2016 amounted to £104,000 (2015: £49,000), all of which are to be covered by forthcoming receipts.

Remuneration policyWe use a range of different pay scales for employees on different terms and conditions. The great majority of employees (97 per cent) 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 Strategic Management Team (SMT) consisting of the CEO and seven other members as identified in the ‘Who’s who’ section of this report. The total remuneration paid to this group was £951,000. Senior management 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.

Risk managementRisk is not only about threats that have to be managed; it is equally about the potential failure to seize opportunities. RNIB views the strategic management of risk as an integral part of its decision making processes and culture, supporting effective planning and evaluation of its activities. Risk management is focused on risks and opportunities associated with delivering our 2014/19 strategy and business plan, with identified risks embedded in our strategic and operational management processes.

23

Governance of the Group’s risk management ultimately sits with the Board of Trustees. Detailed consideration of risk is delegated to Audit Committee, which is assisted by senior management in continually reviewing risk and reporting to the Board.

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.

We have an internal strategic risk committee (led by senior officers) who undertake formal review of strategic and significant operational risks every quarter, and play a key role in ensuring that mitigation plans are up-to-date and relevant. The internal strategic risk committee reports directly to the Executive Team, who in turn report on risk management to Audit Committee twice a year. We have kept our strategic risks under review during the second year of the new strategy period, which have been signed off by the Board of Trustees.

There are six key strategic risks, covering both external and internal risks:

Risk 1: Insufficient resources to deliver the 2014/19 strategy. Risk 2: Inability to respond to a significant change in the external environment. Risk 3: We do not have the right Trustee, employee and volunteer capacity or

capability. Risk 4: We do not have adequate and appropriate IT and digital infrastructure to

deliver our strategy. Risk 5: We do not have adequate or appropriate governance or processes in

place. Risk 6: Our actions or behaviour damages the RNIB Group brand or reputation

with key stakeholders.

In order to manage these risks, there are a number of controls and mitigations in place, including (but not limited to):

1. Five-year strategy, business plan and budget which has regular Executive Team and Board of Trustees oversight

2. Strategically aligned Governance structures, including subsidiary charity agreements

3. Group-wide organisational values4. Financial controls and policies (such as reserves, investment policies and

ethical fundraising)5. Disaster recovery and business continuity planning6. Controls related to statutory compliance obligations (such as health and safety,

data protection, safeguarding)7. Proactive and targeted campaigning

24

8. Involvement of blind and partially sighted people in our campaign and influencing work

9. Strategic partnership work10. Staff and volunteer recruitment policy and procedures which are aligned to

strategy.

Overall, deployment of the Group’s risk management controls and mitigations continue to remain effective where they are already well embedded; where new risks have been identified, mitigations are being implemented.

The Board of Trustees is therefore 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 riskPrice risk for RNIB Group arises because of changes in unit trust and equity prices. Listed investments with a fair value of £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 particular 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.

Going concernThe financial statements are drawn up on the going concern basis which assumes RNIB Group will continue in operational existence for the foreseeable future.

RNIB substantially relies on funding from public fundraising, contracts and commercial activities for its current and future commitments and we seek to manage

25

the risks around all our income streams. The going concern basis used in the preparation of these financial statements is based upon the expectation that RNIB's net income or net expenditure are at a level to ensure reserves and cash flow requirements are met.

The Board has given due consideration to the working capital and cash flow requirements of the Group and have prepared detailed monthly cash flow forecasts for the life of its strategy through to 2018/19.

Based on their work, the Board considers RNIB's current and forecast cash resources to be sufficient to cover the working capital requirements of the charity for at least 12 months from the date of signing the accounts and has determined that it remains appropriate to continue to adopt the going concern basis in preparing the accounts.

Our volunteersDuring the course of the year we’ve had 5,149 active volunteers (2015: 4,020) in 6,662 roles.

The numbers have fluctuated during the year, but the work linked to the Online Today project has put in place firm foundations to enable future growth, and tailored recruitment plans are in place. There are firm 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, eg volunteer hours

and customer outcomes. In order to recruit more volunteers, over the past year we have refreshed our promotional materials. Our updated volunteering pages include videos from five volunteers talking about what it’s like to volunteer with us. We have new volunteer posters and a leaflet. We will soon be launching a new set of volunteer thank you materials.

We have carried out a review of our activities within the Volunteering team and have developed plans to review and develop the support that we offer.

We are confident that we are putting in place a solid platform to allow us to harness the skills, experience and passion of our volunteers especially those with sight loss, and continue to build and maintain strong links with our customers via volunteers.

26

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 doInclusive – 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 to allow people with differing disabilities to work for us.

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, 9.9 per cent (2015: 10.7 per cent) 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. Additional reasonable adjustments are also made for disabled staff as required. 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.

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 Unite and UNISON trades union, which gives them collective bargaining rights over certain terms and conditions of employment. We currently have nine staff union representatives.

We also have a staff forum and a number of staff forum representatives who meet at a site, regional and national level to discuss areas that are specifically of interest to staff, but also to receive information about the financial health of the organisation and how we are achieving our strategic goals. We now have a permanent staff forum chair and have held our first staff forum conference, bringing all staff representatives together to talk about their role. We are continually looking for ways in which we can engage more with our staff forum representatives, and this year, they were involved for the first time in the analysis of the feedback from the annual

27

staff survey. They were also asked for their views on changes to HR-related policies and procedures.

The staff survey was run again in early 2016 and showed favourable results when benchmarked against the charity sector averages, with scores of 73 per cent of staff agreeing that they would recommend RNIB as a good place to work (previously 69 per cent), and 89 per cent of staff understanding the aims of the charity (previously 88 per cent).

Health, safety and the environmentWe 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 management systems.

We recognise that our people are our single most important asset within the organisation. Through the provision of sound risk management techniques, and a comprehensive training programme, we will ensure they are both competent and confident to undertake their roles; working in ways which are efficient and cost effective for the benefit of all who work in, and access, our services.

Environmental impactDuring 2015, RNIB Group assessed its total building and transport energy consumption, and arranged environmental audits of a representative sample of 14 sites as part of its measures to meet the requirements of the Energy Saving Opportunity Scheme Regulations (ESOS). The data from the audits is being used to look at energy saving opportunities across the Group.

Health and happinessSickness absence levels have decreased by four per cent to 10.8 working days lost per person in 2015/16 (2014/15: 11.3 working days). 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.

Going forwardsThe governance of health, safety, fire and environment (HSFE) will continue to be enhanced during 2016/17 with further developments to, and efficiencies, in our safety management systems. The introduction of an HSFE Tracker will allow the completion of the action plans from fire risk assessment and health and safety audits to be monitored, collated and reported on. The Risk Register and Key Performance Indicators for HSFE are also being updated and the progress is monitored by the HSFE Group. The HSFE Team will also building on the training delivered to the SMT with the introduction of a new health and safety training course for managers.

28

The Trustees’ report, including the strategic report, was approved by the Board of Trustees, and authorised for issue on 7 July 2016.

Kevin Carey, Chair

Alan Tinger, Treasurer

29

Independent auditors’ report to the Trustees of RNIBReport 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 2016 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 section 144 of the Charities Act 2011 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 financial statements (the “Annual Report”), comprise:

the group and RNIB balance sheets as at 31 March 2016; the consolidated statement of financial activities for the year then ended; the group cash flow statement for the year then ended; and 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 exceptionSufficiency of accounting records and information and explanations receivedUnder the 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; or30

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 Annual ReportUnder the Charities Act 2011 we are required to report to you if, in our opinion the information given in the Trustees’ Annual 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 auditOur responsibilities and those of the TrusteesAs explained more fully in the Statement of Trustees’ Responsibilities set out on page 7, 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 144 of the Charities Act 2011 and regulations made under section 154 of that Act (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.

31

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.

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 Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

PricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsLondon16 September 2016

PricewaterhouseCoopers LLP is eligible to act, and has been appointed, as auditor under section 144(2) of the Charities Act 2011.

32

Consolidated statement of financial activities for the year ended 31 March 20162016 2015

Income and endowments from:

Notes Unrestricted funds£’000

Restricted funds£’000

Endowment funds£’000

Total

£’000

Unrestricted funds£’000

Restricted funds£’000

Endowment funds£’000

Total

£’000Donations 27,848 2,536 - 30,384 27,921 2,836 - 30,757Legacies 31,746 5,650 - 37,396 28,608 5,369 - 33,977

Charitable activities:Being there 65 1,564 - 1,629 87 1,404 - 1,491Independence 60 38,209 - 38,269 17,446 22,787 - 40,233Inclusion 87 5,307 - 5,394 209 4,201 - 4,410Prevention 7 97 - 104 4 68 - 72Total Income from charitable activities: 219 45177 0 45396 17746 28460 0 46206

Other trading activities 332 - - 332 538 - - 538Investment income 2 94 363 - 457 260 375 - 635Other income 485 - - 485 1,016 - - 1,016

Total income and endowments 60,724 53,726 - 114,450 76,089 37,040 - 113,129

Expenditure on:Raising funds 4/5/6 22,361 340 - 22,701 18,555 3,066 - 21,621

Charitable activities:Being there 4/5/6 4,553 2,057 - 6,610 4,294 2,427 - 6,721Independence 4/5/6 35,033 45,630 - 80,663 50,495 31,392 - 81,887Inclusion 4/5/6 5,852 5,765 - 11,617 4,492 3,908 - 8,400Prevention 4/5/6 1,027 438 - 1,465 595 396 - 991

33

Total expenditure on charitable activities:

46465 53890 0 100355 59876 38123 0 97999

Total expenditure 68,826 54,230 - 123,056 78,431 41,189 - 119,620

Net (losses)/gains on investments 14 (252) (269) (156) (677) 612 662 405 1,679

Net income/(expenditure) (8,354) (773) (156) (9,283) (1,730) (3,487) 405 (4,812)

Transfers between funds 59 (40) (19) - 69 (69) - -

Other recognised gains/(losses):Net gains/(losses) on interest rate swap 118 - - 118 (1,543) - - (1,543)Gain/(loss) on revaluation of fixed assets - - - - - - -

Actuarial (loss)/gain on defined benefit pension scheme

24(3,945) 1,230 - (2,715) 5,505 (1,430) - 4,075

Net income attributable to non-controlling interest - - - - - (7) - (7)

Net movement in funds (12,122) 417 (175) (11,880) 2,301 (4,993) 405 (2,287)

Reconciliation of fundsTotal funds brought forward 85,508 27,301 5,734 118,543 83,207 32,294 5,329 120,830

Total funds carried forward 73,386 27,718 5,559 106,663 85,508 27,301 5,734 118,543

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 were £72,921,000 (2015 : £89,048,000) less resources expended by RNIB at £81,739,000 (2015 : £90,581,000) led to a deficit of £8,818,000 (2015: deficit of £1,533,000). All income, expenditure and resulting net movements in funds are derived from continuing activities. The Isle of Man government require that

34

we disclose the income and expenditure in the Isle of Man which amounted to £59,000 (2015: £145,000) and £58,000 (2015: £163,000) respectively. The notes that follow form part of the financial statements.

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

35

Balance sheets as at 31 March 2016

Notes Group 2016£’000

Group 2015£’000

RNIB 2016£’000

RNIB 2015£’000

Fixed assetsTangible assets 12 91,027 93,336 71,423 72,786Intangible assets 13 1,400 - 1,400 -Investments 14 15,735 24,795 9,220 18,215

Total fixed assets 108162 118,131 82,043 91,001

Current assetsStocks and work in progress 16 1,342 1,051 - -Debtors due within one year 17 29,745 24,761 31,592 21,156Debtors due in more than one year 18 - - - 731Investments 14 45 531 - 459Cash at bank and in hand 4,272 3,253 2,038 1,323

Total current assets 35,404 29,596 33,630 23,669

Creditors: amounts falling due within one year 19 18,237 13,162 17,565 7,554

Net current assets 17,167 16,434 16,065 16,115

Total assets less current liabilities 125,329 134,565 98,108 107,116

Creditors: amounts falling due after one year 20 23,270 23,730 23,049 23,730

Net assets excluding pension asset 102,059 110,835 75,059 83,386

Defined benefit pension asset 24 4,604 7,715 7,562 12,036

36

Non-controlling interest in net assets - (7) - -Net assets including pension asset 106,663 118,543 82,621 95,422

The funds of the Group/RNIB:Endowment funds 22 5,559 5,734 5,558 5,733Restricted income funds 22 27,718 27,301 3,677 4,181

Unrestricted income funds:Designated 22 43,014 50,236 43,014 50,236General 22 22,810 23,236 22,810 23,236Pension reserve 22/24 7,562 12,036 7,562 12,036

Total unrestricted income funds 73,386 85508 73,386 85508

Total Group/RNIB funds 106,663 118,543 82,621 95,422

These financial statements were approved by the Board of Trustees on 7 July 2016 and signed on behalf of RNIB by Kevin Carey, Chair, and Alan Tinger, Honorary Treasurer.

37

Group cash flow statement for the year ended 31 March 2016

2016£’000

2015£’000

Net cash provided by (used in) operating activities (8,569) (8,548)

Cash flows from investing activitiesInvestment income 457 391Purchase of fixed assets (3,003) (1,286)Proceeds from sale of tangible fixed assets 5 -Purchase of investments (202) (17)Proceeds from sale of investments 8,585 11,006Proceeds from sale of property held for sale 459 613Net cash provided by investing activities 6,301 10,707

Cash flows from financing activitiesRepayments of borrowing (1,015) (1,000)Cash inflows from new borrowing 4,265 10Net cash provided by (used in) financing activities 3,250 (990)

Net increase in cash and cash equivalents in the reporting period 982 1,169Cash and cash equivalents at the beginning of the reporting period 3,248 2,079Cash and cash equivalents at the end of the reporting period 4,230 3,248

38

Notes to the cash flow statement

A. Reconciliation of net income to net cash outflow from operating activities

2016£’000

2015£’000

Net income for the reporting period before transfers (9,283) (4,812)Adjustments for:Investment income (457) (635)Depreciation 3,827 3,247Non-monetary assets acquired on acquisition - (388)Investment management fees charged to portfolio 27 24Loss on disposal of tangible fixed assets 79 461Loss/(gain) on investments 677 (1,679)Increase in current creditors 1,232 1,750Increase in long term creditors 215 26Decrease (increase) in pension provision 396 (234)(Decrease) in non-controlling interest (7) -Increase in debtors (4,984) (6,267)Increase in stock (291) (41)Net cash outflow from operating activities (8,569) (8,548)

B. Analysis of change in net debt 31 March 2014£’000

Cash flow 2014/15

£’000

31 March 2015£’000

Cash flow 2015/16

£’000

31 March 2016£’000

Cash at bank 2,080 1,173 3,253 1,019 4,272Bank overdraft (1) (4) (5) (37) (42)Total cash 2,079 1,169 3,248 982 4,230Debt due within one year (1,000) - (1,000) (3,848) (4,848)Debt due after one year (20,000) 1,000 (19,000) 598 (18,402)Total change in net debt (18,921) 2,169 (16,752) (2,268) (19,020)

39

Notes to the financial statements for the year ended 31 March 2016

1. Statement of significant 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. Details of the impact of transition to FRS 102 are disclosed in note 27.

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 accounts 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.

1.2 Going ConcernThe Group’s forecasts and projections, taking account of reasonable possible changes in performance, show that the Group will have sufficient cashflows 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

40

effective date of acquisition. The intra-group transactions, balances and unrealised profits are eliminated in full. Any negative goodwill arising is written off in the year of acquisition and included as an income within the SoFA. Where specific assets are gifted to RNIB as part of the acquisition, these are treated as a donation and transferred to RNIB.Goodwill recognised as an intangible asset represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the Group’s interest in the identifiable net assets, liabilities and contingent liabilities acquired. Goodwill is amortised over its expected useful life. Where the Group is unable to make a reliable estimate of useful life, goodwill is amortised over a period not exceeding 5 years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the SoFA.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, 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.

41

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. They are included at 95 per cent of their valuation to reflect the uncertainty of estate administration. Reversionary interests involving a life tenant and contentious legacies are not recognised. We do not include any notification below £30,000 where we have yet to receive estate accounts.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 in respect of revenues that have been earned in the current financial year but are yet to be invoiced.

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.

42

(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, that is when the recipient has been informed.

1.8 Tangible Fixed assetsTangible assets are recorded at cost, including irrecoverable VAT, or where donated, open market valuation at the time of donation. Under the transitional provisions of Financial Reporting Standard 102 (FRS102), RNIB has adopted the valuations of selected properties as at 1 April 2014 as deemed cost and these are now held on a cost basis. Assets in the course of construction or development are transferred to the relevant category of asset and depreciated when they are available for use. Individual items of expenditure below £5,000 are not capitalised across the RNIB Group; in previous years the threshold for RNIB was £2,500 but with inconsistency across the group. This change has been implemented retrospectively by accelerating the depreciation for all assets with an original cost of less than £5,000 to ensure a net book value of zero at 31 March 2016. This has resulted in additional depreciation across the RNIB Group of £491,000. The assets concerned have been removed from fixed assets.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 properties

Freehold buildings: 50 years Leasehold land and buildings – lease longer than 50 years: 50 years Leasehold land and buildings – lease shorter than 50 years: Lease period

Machinery, vehicles and equipment Motor vehicles; fixtures and fittings; equipment: 5 years Computer hardware: 3 years

43

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.

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 – three 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. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

44

1.10 InvestmentsListed investments are stated at market value 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 net realisable value. 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. Impairment is considered for each line of stock which has been held for more than a year. 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

45

are normally recognised at their settlement amount. For creditors due for settlement in more than one 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 schemeFor 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 resources expended. 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 an “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 amount charged to the SoFA in respect of pension costs and the post-retirement benefits are the contributions payable in the year.

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.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.

46

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 cashflows.

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.

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.

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.

47

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 24, 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.

48

2. Investment income

2016 2015Unrestricted

£’000Restricted

£’000Total£’000

Unrestricted£’000

Restricted£’000

Total£’000

General fundsInvestment income from quoted investments 75 363 438 217 368 585Bank interest receivable 1 - 1 1 7 8Rents 8 - 8 22 - 22Royalties 10 - 10 20 - 20

Total 94 363 457 260 375 635

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

49

3. Net income from trading activities of subsidiary undertakingsResults 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

Bucks Vision£’000

RNIB Specialist Learning Trust

£’000Total 2016

£’000Total 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 (expenditure) /income 147 (699) 734 - (234) (250) (302)Actuarial gain/(loss) on defined benefit pension schemes

- 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

RNIB Charity£’000

Action£’000

CIB£’000

NTNM£’000

Bucks Vision£’000

RNIB Specialist Learning Trust

£’000

Total 2016£’000

Fixed 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 24,042

50

Results for the year ended 31 March 2015 of the subsidiaries of RNIB operating under association agreements

RNIB Charity£’000

Action£’000

CIB£’000

NTNM£’000

Bucks Vision£’000

RNIB Specialist Learning Trust

£’000

Total 2015£’000

Total income 25,116 14,782 554 150 133 1,237 41972Total expenditure (24,907) (18,777) (522) (150) (330) (1,452) (46,138)Net income/(expenditure) 209 (3,995) 32 - (197) (215) -4166Actuarial loss on defined benefit pension scheme

- (1,297) (78) - - (86) (1,461)

Net movement in funds 209 (5,292) (46) - (197) (301) (5,627)Funds brought forward - 26,012 565 - - 1,260 27,837Funds transferred on acquisition - - - - 904 - 904Funds carried forward 209 20,720 519 - 707 959 23,114

RNIB Charity£’000

Action£’000

CIB£’000

NTNM£’000

Bucks Vision£’000

RNIB Specialist Learning Trust

£’000

Total 2015£’000

Fixed assets 209 23,389 1,932 - 40 1,565 27,135Current assets 5,179 1,889 220 7 691 561 8,547Creditors – amounts falling due within one year (5,179) (1,666) (165) (7) (24) (475) (7,516)Creditors – amounts falling due after one year - - (731) - - - (731)Pension scheme liability - (2,892) (737) - - (692) (4,321)Net assets 209 20,720 519 - 707 959 23,114

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 £11,867,000 in the year (2015: £10,351,000). The income shown in the tables includes the grant received from RNIB.

51

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 £16,220,000 in the year (2015: £6,505,000). The income shown in the tables includes the grant received from RNIB.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 (2015: £95,000). RNIB has also paid a grant to CIB in the year amounting to £886,000 (2015: £172,000) to cover additional costs funded from income restricted for Cymru. The income shown in the tables includes the grant received from RNIB.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 an subsidiary charity of Action on 1 July 2014. RNIB has not paid a grant to BucksVision in the year (2015: not applicable).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.

52

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

Total 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

RNIB Enterprises

Limited£’000

RNIB Services Limited£’000

NLB£’000

BCNI£’000

RNIB Business Services

LLP£’000

MPH£’000

Total2016£’000

Investment 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

53

Results for the year ended 31 March 2015 of other subsidiaries

RNIB Enterprises

Limited£’000

RNIB Services Limited£’000

NLB*£’000

BCNI*£’000

RNIB Business Services

LLP£’000

Total2015£’000

Total income 538 6,595 228 35 90 7,233Total expenditure (68) (6,572) (9) (1) (76) (6,726)Net income/(expenditure) 470 23 219 34 14 507Amount gifted/covenanted to RNIB (470) (23) (219) (34) - (493)Non-controlling interest - - - - (7) (7)Net movement in funds - - - - 7 7Funds brought forward 5 - - - - 5Capital investment - - - - 10 10Funds carried forward 5 - - - 17 22

*The figures for NLB and BCNI have been restated in line with the current year presentation.

RNIB Enterprises

Limited£’000

RNIB Services Limited£’000

NLB£’000

BCNI£’000

RNIB Business Services

LLP£’000

Total2015£’000

Investment 10 - - - - 10Current assets 337 1,583 5 - 100 2,025Creditors – amounts falling due within one year

342 1,583 5 - 76 2,006

Non-controlling interest - - - - 7 7Net assets 5 - - - 17 22

54

RNIB Enterprises Limited carry out trading activities that include commercial sponsorship and a scheme for the recycling of toner cartridges as well as the hiring of recording studios. 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.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 current 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 and will be fully dissolved in 2016.

55

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

Total2016

£’000

Total2015

£’000Total income 80,649 49,205Total expenditure (80,266) (52,864)

Net (expenditure)/income 383 (3,659)Actuarial gain/(loss) on defined benefit pension scheme

1,230 (1,461)

Amount gifted/covenanted to RNIB (692) (493)Non-controlling interest - (7)

Net movement in funds 921 (5,620)Funds brought forward 23,126 27,842Investment of capital 10 10Funds transferred to RNIB on merger - 904

Funds carried forward 24,057 23,136

Total2016

£’000

Total2015

£’000Fixed assets 26,134 27,145Current assets 15,426 10,572Creditors – amounts falling due within one year 14,324 9,522Creditors – amounts falling due after one year 221 731Pension scheme liability 2,958 4,321Non-controlling interest - 7

Net assets 24,057 23,136

The total net assets of the subsidiary charities and other subsidiaries as at 31 March 2016 amounting to £24,057,000 (2015: £23,136,000) are held within the Group restricted and endowment funds as detailed in note 22.

56

4. Expenditure – Group

2016 Unrestricted direct costs

£’000

Restricted direct costs£’000

Support costs£’000

Total

£’000Raising funds 16,106 340 6,255 22,701Charitable activitiesBeing there 3,365 2,057 1,188 6,610Independence 18,689 45,630 16,344 80,663Inclusion 4,053 5,765 1,799 11,617Prevention 695 438 332 1,465

Total charitable activity costs 26802,802 53890 19,663 100355Total expenditure 42,908 54,230 25,918 123,056

2015 Unrestricted direct costs

£’000

Restricted direct costs£’000

Support costs£’000

Total

£’000Raising funds 12,535 3,066 6,020 21,621Charitable activitiesBeing there 2,938 2,427 1,356 6,721Independence 35,199 31,392 15,296 81,887Inclusion 3,141 3,908 1,351 8,400Prevention 320 396 275 991

Total charitable activity costs 41,598 38,123 18,278 97,999Total expenditure 54,133 41,189 24,298 119,620

57

5. Support costs allocation

2016 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 3,143 376 6,255

Charitable activitiesBeing there 214 118 414 25 56 307 54 1,188Independence 2,828 1,668 4,692 352 1,149 4,880 775 16,344Inclusion 370 176 551 43 67 496 96 1,799Prevention 71 24 116 6 9 93 13 332

Total charitable activity costs 3,483 1,986 5,773 426 1,281 5,776 938 19,663

Total support expenditure 4,114 2,681 6,748 597 1,545 8,919 1,314 25,918

2015 Human Resources

£’000

Finance

£’000

InformationTechnology

£’000

Legal Services

£’000

Property Services

£’000

Other

£’000

Governance

£’000

Total

£’000Raising funds 672 415 1,321 70 92 2,753 697 6,020

Charitable activitiesBeing there 200 195 362 16 78 423 82 1,356Independence 2,620 2,062 3,800 189 863 5,187 575 15,296Inclusion 144 127 335 20 28 649 48 1,351Prevention 47 16 60 3 3 135 11 275

Total charitable activity costs 3,011 2,400 4,557 228 972 6,394 716 18,278

Total support expenditure 3,683 2,815 5,878 298 1,064 9,147 1,413 24,298

58

Basis of allocation:Human resources – HeadcountFinance – Pro rata on basis of costsInformation and technology services – Networked computersLegal Services – Pro rata on basis of costsProperty services – Floor space Other and Governance (including Strategy and performance, Group support) – Pro rata on basis of costs

59

6. Governance costs

Group2016

£’000

Group2015

£’000

RNIB2016

£’000

RNIB2015

£’000Internal audit 142 83 142 79External audit – PricewaterhouseCoopers LLP* 132 155 41 41External audit – other* 9 8 - -Other services – PricewaterhouseCoopers LLP 36 11 36 11Legal fees – subsidiary charities - 165 - 88Trustees' expenses 84 73 69 57Costs incurred in running the Chairman's Office 68 48 68 48International activity – including World Blind Union 60 66 60 66General costs incurred in servicing RNIB's corporate committees and the statutory affairs of RNIB

783 804 89 545

Total governance costs 1,314 1,413 505 935* Excluding VAT

60

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.

61

8. Group employee remunerationThe average monthly number of employees during the year was 2,359 (2015: 2,471), of which, the average full time equivalent was 1,981 (2015: 1,783). The total emoluments are analysed as shown below:

2016£’000

2015£’000

Salary costs 53,477 51,988Employer’s NI contributions 4,781 4,780Employer’s pension contributions 4,351 5,554

Total emoluments 62,609 62,322

The following numbers of employees received total emoluments within the bands shown:2016 2015

Between £60,001 and £70,000 12 18Between £70,001 and £80,000 3 8Between £80,001 and £90,000 9 7Between £90,001 and £100,000 - 2Between £100,001 and £110,000 3 4Between £110,001 and £120,000 6 1Between £140,001 and £150,000 - 1Between £150,001 and £160,000 1 -

There are four people (2015: nine) disclosed above where the figures include a payment on the termination of employment. Included in the total emoluments figures above are payments amounting to £1,278,000 made to 120 members of staff (2015: £2,313,000 to 192 members of staff) on termination of employment. These costs have been incurred as part of a programme of work to implement our 2014/19 strategy and ensure we have the right people with the right skills to effectively meet the needs of our customers.

62

RNIB made payments on behalf of 26 (2015: 36) higher paid employees in respect of the RNIB Retirement Benefit Scheme and the Teachers’ Pension Scheme, and there were payments made to 16 (2015:16) 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 £383,000 (2015: £358,000). 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 three (2015: five) of its employees in respect of pension contributions totalling £16,000 (2015: £20,000).

The RNIB Group is led by the Strategic Management Team consisting of the Chief Executive Officer and seven other members as identified in the Who’s who section of this report. The total remuneration paid to this group was £951,000.

Staff are able to 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.

63

9. RNIB Trustees’ expenses and related parties transactions

Many Trustees and/or their organisations bear the cost of attending meetings themselves. They receive no benefits from the Group except as users of our services.

Trustees of the RNIB Group represent agencies and organisations throughout the United Kingdom, and they attend many committee, sub-committee and Boards of Governors’ meetings, most of which are held at the Charity’s London service centre.

A total of £28,610 paid to, and on behalf of, eight Trustees of the Charity as reimbursement of travel and subsistence expenses incurred in attending these meetings (2015: £36,672 to 21 Trustees). In addition £6,179 was paid to one Trustee of the Charity as reimbursement of overseas travel and subsistence incurred in attending international meetings and conferences (2015: £15,953 to one Trustee). Five Trustees chose to waiver their expenses, which totalled £144.

The cost of lunches and overnight stays in RNIB establishments during the meetings cost a further £20,372 (2015: £4,053).

During the year RNIB paid Kevin Carey, Chair of RNIB, £25,323 (2015: £25,113) as remuneration in respect of carrying out his duty as Chair of RNIB. These payments have been made with the consent of the Charity Commission. In addition RNIB has paid nothing (2015: £20,100) to HumanITy as a contribution to their secretarial and office costs in providing support to Kevin Carey in his role as the Chair of RNIB. Kevin Carey was employed as an executive director of the HumanITy organisation, during this period. HumanITy also receives a management fee of US$3,400 per month from Transforming Braille Group of which RNIB has a 20 per cent shareholding. RNIB paid Transforming Braille/Morgan Stanley £149,882 in 2015/2016.

Vidar Hjardeng, a Trustee of the RNIB Group, is a self-employed consultant for ITV News, from which RNIB received £2,400, he is also a consultant for Focus Birmingham from which RNIB received £10,260 in 2016, as well as being a member of the Audio Description Association, which RNIB paid £125 to in 2016.

64

Mike Nussbaum, a Trustee of RNIB Group and a Trustee of Action, is a Trustee of Guide Dogs for the Blind Association from which £38,191 (2015: £74,859) was received. £52,520 (2015: £3,100) was paid to Guide Dogs for the Blind Association by RNIB, £49,842 of which related to a legacy payment. 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 £5,198 has been paid and from which £48 has been received. Mike is a Trustee of Vision 20/20 UK which were paid £13,712 (2015: £19,876) and from which £37 (2015: £22,302) has been received. Mike is also a Trustee for the Equality and Diversity Forum, who has received £1,500 from RNIB in 2016.

Eleanor Southwood, Group Vice Chair External Affairs for RNIB, became an elected councillor for London Borough of Brent on 22 May 2014 from which RNIB received £409,664 (2015: £200,886) and RNIB paid £210 to in 2016. Eleanor is also a Member of the Labour Party who received £900 in 2016 from RNIB.

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 £20,440 (2015: £33,989).

65

10. Grants payable

Grants payable in the year amount to £251,000 (2015: £382,000) with four (2015: seven) grants of £5,000 or above, amounting to £39,000 (2015: £94,000). In addition, around 737 (2015: 730) small grants at an individual value of less than £5,000 were made.

2016£’000

2015£’000

Association of Blind Asians 10 10Daisy Consortium - 20Gateshead and South Tyneside Sight Service - 30ICEVI Europe - 5Kimberley Burrows – to attend Leeds College of Art 6 -Louis Braille Museum - 8South Lincolnshire Blind Society 7 -World Blind Union – Marrakesh Treaty Ratification Campaign Project - 5World Blind Union – Core Work Sponsorship 16 16Other grants – all under £5,000 212 288

Total grants payable 251 382

66

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

2016£’000

2015£’000

Auditors remunerationStatutory audit fee – RNIB 74 70Statutory audit fee – Subsidiary companies 12 18Statutory audit fee – Subsidiary charities 55 76Audit of teachers' pension scheme and other non-statutory audit work 14 3Financial advice and other services 22 11

Operating lease payments – other 1,843 1,544Foreign exchange losses 61 59Depreciation charge – tangible fixed assets 3,827 3,247(Loss) profit on disposal of fixed assets (79) (461)

Of the £55,000 (2015: £76,000) statutory audit fees payable by the subsidiary charities £9,000 (2015: £8,000) was paid to organisations other than PricewaterhouseCoopers LLP.

67

12 Tangible fixed assets

GROUP Service properties

£’000

Service properties

held for sale£’000

Machinery, vehicles and

equipment£’000

Total

£’000CostBalance 1 April 2015 101,175 8,379 10,339 119,893Additions 693 - 910 1,603

Elimination on disposal (164) - (2,415) (2,579)Balance 31 March 2016 101,704 8,379 8,834 118,917Accumulated depreciationBalance 1 April 2015 15,846 3,474 7,237 26,557Charge for year 2,165 - 1,662 3,827Elimination on disposal (162) - (2,332) (2,494)

Balance 31 March 2016 17,849 3,474 6,567 27,890Net book value 31 March 2016 83,855 4,905 2,267 91,027Net book value 31 March 2015 89,834 400 3,102 93,336

68

RNIB Service properties

£’000

Service properties

held for sale£’000

Machinery, vehicles and

equipment£’000

Total

£’000CostBalance 1 April 2015 80,307 8,379 4,057 92,743Additions 642 - 477 1,119Elimination on disposal (28) - (1,285) (1,313)

Balance 31 March 2016 80,921 8,379 3,249 92,549Accumulated depreciationBalance 1 April 2015 14,007 3,474 2,476 19,957Charge for year 1,637 - 807 2,444Elimination on disposal (28) - (1,247) (1,275)

Balance 31 March 2016 15,616 3,474 2,036 21,126Net book value 31 March 2016 65,305 4,905 1,213 71,423Net book value 31 March 2015 70,805 400 1,581 72,786

Service properties are used to provide services to blind and partially sighted people. Of the net book value of property used by the Group, £15,330,000 (2015: £15,761,000) represents leaseholds of more than 50 years whilst £359,000 (2015: £448,000) 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 23.

69

13. Intangible assets

GROUP and RNIB Software Development

£’000

Total

£’000CostBalance 1 April 2015 - -Additions 1,400 1,400

Balance 31 March 2016 1,400 1,400Accumulated amortisationBalance 1 April 2015 - -Charge for year - -

Balance 31 March 2016 - -Net book value 31 March 2016 1,400 1,400Net book value 31 March 2015 - -

The additions relate to three on-going software development projects that will be completed in 2016/17:- enterprise resource planning system- human resources and payroll system- electronic library

70

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 2015 24,795 531 25,326 18,215 459 18,674Acquisitions at cost 202 - 202 - - -Disposals at opening market value (8,756) (459) (9,215) (8,735) (459) (9,194)Net (loss) on revaluation (506) (27) (533) (260) - (260)Market value at 31 March 2016 15,735 45 15,780 9,220 - 9,220

Fixed Asset Investments Market value Market value Market value Market value2016 Group

£’0002015 Group

£’0002016 RNIB

£’0002015 RNIB

£’000UK quoted unit trusts 15,028 24,088 8,508 17,503UK unquoted equity shares - - 5 5Property 707 707 707 707Market value at 31 March 15,735 24,795 9,220 18,215

Current Asset Investments Market value Market value Market value Market value2016 Group

£’0002015 Group

£’0002016 RNIB

£’0002015 RNIB

£’000Shropshire properties - 459 - 459UK quoted investments 45 72 - -Market value at 31 March 45 531 - 459

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

71

2016£’000

2016Per cent

2015£’000

2015Per cent

L&G Ethical Trust (Distribution Units) - - 3,015 12.5L&G Cash Trust (Accumulation Units) - - 4,666 19.4F&C Ethical Bond Share Class 2 2,922 18.6 4,061 16.7CAF UK Equities fund 3,040 19.4 2,645 11.0L&G Fixed Interest Trust 2,605 16.6 2,582 10.7F&C Ethical Bond Share Class 2 (Emma Nye Fund) 2,562 16.3 3,148 13.1

72

15. 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. The holding in RNIB Business Services LLP is held indirectly through RNIB Enterprises Limited (50 per cent) and MPH Accessible Media Limited (50 per cent).

Subsidiary undertakings with a share capital

Registered in Capital heldPer cent

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

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 26688 205913 SC040050RNIB Charity England and Wales 8971500 1156629 SC044876CIB England and Wales 149982 214131 -NTNM England and Wales 1973092 293656 -BCNI Northern Ireland NI 20701 XN48801 -NLB England and Wales 58823 213212 -Glynn Vivian England and Wales - 214330 -RNIB Specialist Learning Trust England and Wales 8478985 Exempt Charity -

73

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 8016572 1147814The Blind Society forNorth Tyneside Limited

England and Wales 3736040 1075973

Staffordshire Blind England and Wales 4154438 1091458

In addition to the fixed asset investments there are also some donated investments held by RNIB, which because of their nature are included within current assets.

74

16. Stocks and work-in-progress

Group2016

£’000

Group2015

£’000

RNIB2016

£’000

RNIB2015

£’000Finished goods for resale 1,057 792 - -Raw materials and consumables 285 259 - -

Total 1,342 1,051 - -

75

17. Debtors – amounts falling due within one year

Group2016

£’000

Group2015

£’000

RNIB2016

£’000

RNIB2015

£’000Trade debtors 7,170 5,790 685 499Amounts owed by Group undertakings - - 10,642 3,824Other debtors 3,433 1,518 3,249 1,219Legacy accrued income 15,428 14,382 15,428 14,382Prepayments and accrued income 3,714 3,071 1,588 1,232

Total 29,745 24,761 31,592 21,156

76

18. Debtors – amounts falling due after one year

Group2016

£’000

Group2015

£’000

RNIB2016

£’000

RNIB2015

£’000Amounts owed by Group undertakings - - - 731

Total - - - 731

77

19. Creditors – amounts falling due within one year

Group2016

£’000

Group2015

£’000

RNIB2016

£’000

RNIB2015

£’000Trade creditors 1,063 1,694 589 810Bank overdraft 42 5 1 5Net obligations under loans 4,848 1,000 4,848 1,000Interest rate swap 817 859 817 859Net obligations under finance leases 28 6 16 6Taxes and social security costs 1,308 1,100 497 528Amounts owed to Group undertakings - - 5,456 78Other creditors 3,135 1,822 833 726Accruals 5,982 5,704 4,257 3,302Deferred income – all utilised in the year 1,014 972 251 240

Total 18,237 13,162 17,565 7,554

RNIB has an unsecured revolving credit facility with Barclays Bank. Loan tranches with 12 month maturity can be drawn down at any time with the maximum outstanding amount set at £6million. Interest is charged at 1.25 per cent above the Barclays Bank base. £1.5million is due for repayment on 26 July 2016 and £2.3million is due for repayment on 16 February 2017.

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 (£48,000). Full details of the AIB mortgage is disclosed in note 20.

Full details of the interest rate swap are disclosed in note 21.

78

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

Group2016

£’000

Group2015

£’000

RNIB2016

£’000

RNIB2015

£’000Net obligations under finance leases are payable as followsBetween one and two years 6 6 6 6Between two and five years 235 20 14 20

Net obligations under bank loan is payable as followsBetween one and two years 1,040 1,000 1,040 1,000Between two and five years 3,130 3,000 3,130 3,000More than five years 14,232 15,000 14,232 15,000Interest rate swapBetween one and two years 751 747 751 747Between two and five years 1,858 1,692 1,858 1,692More than five years 2,018 2,265 2,018 2,265

Total 23,270 23,730 23,049 23,730

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 mortgage secured over the freehold property at Coventry. At 31 March 2016 the amount owing on the loan is £19million (2015: £20million) in total.

Interest is charged on the loan at 0.65 per cent 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 per cent.

79

Under the terms of the mortgage RNIB undertakes to maintain the aggregate of Designated and General Reserves at a level 25 per cent above the amount outstanding at any time. At 31 March 2016, with the amount outstanding at £19,000,000 (2015: £20,000,000) the level of such reserves has to exceed £23,750,000 (2015: £25,000,000). Refer to note 22 for the reserves position at 31 March 2016.

80

21. Financial instrumentsRNIB has the following financial instruments:

Note Group2016£’000

Group2015£’000

RNIB2016£’000

RNIB2015£’000

Financial assets at fair value through statement of financial activities- long term investments 14 15,735 24,795 9,220 18,215- short term investments 14 45 531 - 459

Financial assets that are debt instruments measured at amortised cost

- trade debtors 17 7,170 5,790 685 499- amounts owed by group undertakings 17/18 - - 10,642 3,824- other debtors 17 3,433 1,518 3,249 1,219- legacy accrued income 17 15,428 14,382 15,428 14,382- prepayments and other accrued income 17 3,714 3,071 1,588 1,232

Financial liabilities measured at fair value through statement of financial activities

- derivative financial instruments: interest rate swap 19/20 5,444 5,563 5,444 5,563

Financial liabilities measured at amortised cost- securitised long term bank loan 19/20 19,000 20,000 19,000 20,000- MPH secured and unsecured mortgages 20 450 - 450 -- finance leases 19/20 269 32 22 32- unsecured short term loan 19 3,800 - 3,800 -- bank overdraft 19 42 5 1 5- trade creditors 19 1,063 1,694 589 810- taxes and social security costs 19 1,308 1,100 497 528- other creditors 19 3,135 1,822 833 726- amounts owed to group undertakings 19 - - 5,456 78- accruals 19 5,982 5,704 4,257 3,302- deferred income 19 1,014 972 251 240

81

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 per cent 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 per cent.

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.

82

22. Group/RNIB statement of funds

Designated31 March

2015£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2016£’000

Investment fund 371 - (406) 35 - -Mergers fund 844 - (100) (744) - -Service property and associated facilities development

449 - (390) (59) - -

Operational equipment fund

1,407 - (1,635) 228 - -

Information technology infrastructure fund

342 - (1,404) 1,062 - -

Repairs and maintenance fund

- - (9) 9 - -

Net book value – Service properties

45,243 - (1,637) (3,323) 118 40,401

Net book value – Other fixed assets

1,580 - (807) 1,840 - 2,613

Total designated – Group and RNIB

50,236 - (6,388) (952) 118 43,014

83

Investment fund: The purpose is to fund major projects furthering the strategic business plan. This fund has now been closed.

Mergers fund: This fund was designed to meet the costs of transition and future development of services relating to organisations that have merged with RNIB. The transfer represents the release of unspent funds back to general reserves. This fund has now been closed.

Service property and associated facilities development fund: The purpose is to fund capital building projects. This fund has now been closed.

Operational equipment fund: The purpose was to fund planned capital acquisitions. This fund has now been closed.

Information technology infrastructure fund: The purpose was to ensure that the information technology infrastructure is robust. This fund has now been closed.

Repairs and maintenance fund: The purpose is to fund was to fund a rolling programme of regular property maintenance. This fund has now been closed.

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. Such fixed asset properties held in the subsidiary charities are recognised within the restricted funds. The transfer comprises £642,000 of other additions 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 for Specialist Learning offset by a transfer of property to assets held for resale of £4,905,000 and a transfer of 60,000 to the service properties and associated facilities development fund.

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 comprises additions amounting to £1,877,000 less the net book value of disposals and of £38,000.

84

Other unrestricted31 March

2015£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2016

£’000

General – RNIB 23,236 52,660 (54,097) 1,011 - 22,810Pension reserve 12,036 485 (1,014) - (3,945) 7,562

Total other unrestricted 35,272 53,145 (55,111) 1,011 (3,945) 30,372RNIB Enterprises Limited - 332 (332) - - -RNIB Services Limited - 6,567 (6,567) - - -National Library for the Blind - 408 (408) - - -Blind Centre for Northern Ireland

- 20 (20) - - -

Total unrestricted – RNIB and Group

85,508 60,472 (68,826) 59 (3,827) 73,386

85

Restricted31 March

2015£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2016

£’000

Emma Nye fund welfare pensions

452 116 (159) - - 409

Dr Duncan Leeds Bequest 56 51 (43) - - 64Elizabeth Eagle-Bott Memorial Fund

9 28 (28) - - 9

Donations for specified services and equipment

2,722 8,755 (9,183) (40) - 2,254

Big Lottery FundAdvantAGE – Wales Eye Patient Advocacy Service

27 6 (30) - - 3

AdvantAGE – Wales Eye Patient Advocacy Service Continuation

- 85 (48) - - 37

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

- 8 - - - 8

Empowering Young People Programme – Realise

8 110 (106) - - 12

Supporting Families – Family Insight

- 40 (21) - - 19

86

31 March2015

£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2016

£’000

Safe and Well – Lisburn in Focus

9 151 (151) - - 9

Reaching Communities – Optimeyes

- 221 (199) - - 22

Connecting Older People – Looking Forward

120 178 (164) - - 134

Bright New Futures – Future In-Sight

40 183 (185) - - 38

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

35 22 (44) - - 13

Reaching Communities – Trainee Grade Scheme: Extending the Reach

56 53 (110) - - (1)

Investing in Communities – Advice Plus

66 33 (98) - - 1

Investment In Communities – Looking To The Future

84 172 (130) - - 126

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

58 313 (251) - - 120

Basic Online Skills - Online Today

296 1,426 (1,486) - - 236

87

31 March2015

£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2016

£’000

Investing in Communities – IRISS

1 131 (67) - - 65

Awards for AllFamily Activity Days 3 - (2) - - 1

Heritage Lottery FundYour Heritage – Seeing Our History

12 24 (35) - - 1

Our Heritage – Museums in Focus

1 15 (17) - - (1)

Your Heritage – CultureLink SE

- 18 (18) - - -

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

66 39 (22) - - 83

IESD – GP Access - 13 (13) - - -IESD – Support for Early Reach in Clinics and Hospitals (SEARCH)

7 27 (33) - - 1

IESD – EIRECS Early Intervention and Rehabilitation in Eye Care Services

6 94 (98) - - 2

88

31 March2015

£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2016

£’000

HSCVF – Community Eye Health Champions

47 137 (172) - - 12

Total restricted – RNIB 4,181 12,449 (12,913) (40) - 3,677

Action 20,720 8,646 (9,345) - 1,252 21,273RNIB Charity 209 29,644 (29,497) - - 356CIB 518 358 376 - 25 1,277RNIB Specialist Learning Trust

959 1,424 (1,674) - (47) 662

RNIB Business Services LLP 7 433 (440) - - -BucksVision 707 58 (292) - - 473MPH - 445 (445) - - -Total restricted – Group and RNIB

27,301 53,457 (54,230) (40) 1,230 27,718

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 2016 such deficit balances amounted to £104,000 (2015: £49,000), 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.

89

31 March2015

£’000

Investment gains/(losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2016

£’000Sunshine 367 (5) - (19) - 343Emma Nye 3,148 (108) - - - 3,040Bristol Blind Fund 114 (4) - - - 110Eagle-Bott Memorial 668 (11) - - - 657Dr Duncan Leeds Bequest 1,253 (22) - - - 1,231GDC Rushton 183 (6) - - - 177Total endowment – RNIB 5,733 (156) - (19) - 5,558CIB 1 - - - - 1Total endowment – Group and RNIB

5,734 (156) - (19) - 5,559

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 £19,000 (2015: £nil) to general funds. Within the balance at 31 March 2016, the value of the gift element of the permanent endowment was £323,000 (2015: £323,000) and the unapplied total return was £20,000 (2015: £44,000).

90

Summary31 March

2015£’000

Income (including

investment gains/losses)

£’000

Expenditure£’000

Transfers

£’000

Other Gains/(losses)

£’000

31 March2016

£’000

RNIBUnrestricted 85,508 60,472 68,826 59 (3,827) 73,386Restricted 4,181 12,449 12,913 (40) - 3,677Endowment 5,733 - - (19) (156) 5,558

Total 95,422 72,921 81,739 - (3,983) 82621GroupUnrestricted 85,508 60,472 68,826 59 (3,827) 73,386Restricted 27,301 53,457 54,230 (40) 1,230 27,718Endowment 5,734 (156) - (19) - 5,559

Total 118,543 113,773 123,056 - (2,597) 106663

91

23. Analysis of net assets between funds

Group fund balances are represented by:

Unrestricted funds£’000

Restricted funds£’000

Endowment funds£’000

Total funds2016

£’000

Unrestricted funds£’000

Restricted funds£’000

Endowment funds£’000

Total funds2015

£’000Tangible/intangible fixed assets 72,823 19,604 - 92,427 72,995 20,341 - 93,336Investments 3,628 6,548 5,559 15,735 9,637 9,424 5,734 24,795Net current assets 12,643 4,524 - 17,167 14,577 1,857 - 16,434Long-term liabilities (23,270) - - (23,270) (23,730) - - (23,730)Defined benefit pension scheme asset 7,562 (2,958) - 4,604 12,036 (4,321) - 7,715Non-controlling interest in net assets - - - - (7) - - (7)

Total net assets 73,386 27,718 5,559 106,663 85,508 27,301 5,734 118,543

RNIB fund balances are represented by:

Unrestricted funds£’000

Restricted funds£’000

Endowment funds£’000

Total funds2016

£’000

Unrestricted funds£’000

Restricted funds£’000

Endowment funds£’000

Total funds2015

£’000Tangible/intangible fixed assets 72,823 - - 72,823 72,786 - - 72,786Investments 3,634 28 5,558 9,220 9,642 2,840 5,733 18,215Net current assets 12,416 3,649 - 16,065 14,774 1,341 - 16,115Long-term liabilities (23,049) - - (23,049) (23,730) - - (23,730)Defined benefit pension scheme asset 7,562 - - 7,562 12,036 - - 12,036

Total net assets 73,386 3,677 5,558 82,621 85,508 4,181 5,733 95,422

92

24. 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 £7.6millon disclosed in the balance sheet only refers to RNIB and NLB. The scheme deficits for Action, CIB, and the 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

asset (liability)£’000

RNIB 3,932 (3,945) 8,195NLB 141 - (633)Action schemes one 167 805 (1,497)Action schemes three 374 447 -CIB 37 25 (681)Learning Trust 89 (47) (780)

Total defined benefit schemes 4740 (2,715) 4,604

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

93

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 per cent for future accrual of final salary benefits from 1 January 2015. As of 1 January 2015 RNIB also ceased to make additional contributions of £828,000 a year that were due to be paid until 30 June 2018.

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 £106,000 (2015: £110,000) on behalf of 632 (2015: 1,058) 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 accounts. 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 £1,905,000 were paid into the scheme on behalf of the charity.

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

94

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 per cent 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 2016 showed a surplus of which £19,000 (2015: £45,000) is attributable to Action. Action 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.

CIB

95

CIB is a participant within the defined benefit scheme “Cardiff and Vale of Glamorgan Pension Fund” which is part of the Local Government Pension Scheme. In the year CIB contributed £9,700 on behalf of two employees and £58,700 as a deficit contribution.

CIB has a defined contribution pension scheme with Scottish Widows. In the year CIB contributed £2,400 on behalf of one employee.

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.

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.

96

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

2016£’000

31 March 2015

£’000

31 March 2014£’000

Year 1 65 68 66Year 2 67 70 68Year 3 69 72 70Year 4 71 74 72Year 5 73 76 74Year 6 75 78 76Year 7 77 81 78Year 8 80 83 81Year 9 82 - 83

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

2016£’000

31 March 2015

£’000

31 March 2014

£’000Present value of provision 633 560 587

Reconciliation of opening and closing provisionPeriod Ending

31 March 2016

£’000

Period Ending

31 March 2015

£’000Provision at start of period 560 587Unwinding of the discount factor (interest expense) 9 16Deficit contribution paid (68) (66)

97

Remeasurements – impact of any change in assumptions (10) 23

Remeasurements – amendments to the contribution schedule 142 -

Provision at end of period 633 560

Income and expenditure impactPeriod Ending

31 March 2016

£’000

Period Ending

31 March 2015

£’000Interest expense 9 16Remeasurements – impact of any change in assumptions (10) 23

Remeasurements – amendments to the contribution schedule 142 -

Assumptions31 March

2016% per

annum

31 March 2015

% per annum

31 March 2014

% per annum

Rate of discount 2.07 1.74 2.82

98

Detailed disclosures relating to the RNIB Group Retirement Benefit Schemes

The following tables, and narrative, provide the detailed disclosures that relate to the RNIB Retirement Benefit Scheme. The column headed “Subsidiary charities” refers to Action’s schemes one and three, together with that for CIB. Together these explain the Group’s pension costs.

a. 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

99

b. Scheme assets and liabilities RNIB

£’000

Subsidiary charities

£’000

Total

£’000 2015Scheme assets at fair valueEquities 78,252 7,327 85,579Corporate and other bonds - 6,148 6,148Index-linked gilts 53,858 - 53,858Property (including unit trusts) 16,121 1,024 17,145Infrastructure 20,215 - 20,215Standard Life GARS 17,769 - 17,769Legal and General Real and Inflation linked funds 25,540 - 25,540Cash and other (including net current assets) 1,051 105 1,156

Total market value of scheme assets 212,806 14,604 227,410Present value of scheme liabilities (200,210) (18,478) (218,688)

Net pension scheme asset/(liability) 12,596 (3,874) 8,722NLB liability (560) - (560)Wiltshire County Council - (447) (447)Total pension scheme asset/(liability) 12,036 (4,321) 7,715

100

c. Analysis of charge to the SoFA RNIB

£’000

Subsidiary charities

£’000

Total

£’000Year 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 4,740Year to 31 March 2015Current service cost 3,692 148 3,840Interest on net defined benefit liability/(asset) (374) 108 (266)Administration expenses 556 - 556

Expense recognised in SoFA 3,874 256 4,130

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 per cent of pensionable salaries. These rates include the cost of death in service insurance cover. During the year RNIB contributed £3,476,000 (2015: £4,483,000) to the Scheme, and in the next year RNIB expects to contribute £3,519,000 (including expenses). 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 22 employees (2015: 28) totalling £148,000 (2015: £134,000). In addition Action made contributions for one employee totalling £7,000 (2015: one employee totalling £7,000) to the Teacher’s Pension Scheme.

101

d. Analysis of actuarial gains and losses RNIB

£’000

Subsidiary charities

£’000

Total

£’000Year to 31 March 2016Asset gains/(losses) arising during the year (9,031) (290) (9,321)Liability gains/(losses) 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)Year to 31 March 2015Asset gains/(losses) arising during the year 29,850 1,375 31,225Liability gains/(losses) arising during the year (24,345) (2,805) (27,152)

Total actuarial gain/(loss) 5,505 (1,430) 4,075

102

In accordance with the requirements of FRS102 the full actuarial valuation at 31 March 2014 was updated by Aon Hewitt at 31 March 2016. The principal assumptions they used for this purpose are summarised in the following table.

e. Actuarial assumptions 2016RNIB

per cent

2015RNIB

per cent

2016Subsidiary

charitiesper cent

2015 Subsidiary

charitiesper cent

Discount rate 3.40 3.40 3.30-4.00 3.10-4.80Inflation assumption (RPI) 2.90 2.95 2.80-3.00 2.90-3.00Inflation assumption (CPI) 1.90 1.95 1.70-2.40 1.80-2.50Rate of increase in salaries 2.90 2.95 2.70-4.15 2.80-4.25

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

2.75 2.80 - -

Post 30 June 2010 – 3 per cent p.a. cap

2.10 2.10 1.70-2.40 1.80-2.50

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

2.90 2.95 - -

Post 30 June 2010 – 3 per cent p.a. cap

2.90 2.95 1.70-3.00 1.80-3.00

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 27.5 years if they are male and for a further 29.5 years if they are female. For a member who retires in 2033 at age 60 the assumptions are that they will live on average for a further 28.5 years after retirement if they are male and for a further 31.2 years after retirement if they are female, as last year. For schemes offered by the subsidiary charities, for current

103

Pensioners, their life expectancy beyond the pensionable age of 65 ranges between 23.1 to 23.8 years if they are male, and 24.8 to 26.8 years if they are female. For future Pensioners their life expectancy beyond the pensionable age of 65 ranges between 24.8 to 25.9 years if they are male and 26.3 to 29.1 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 2014 169,275 15,024 184,299Current service cost 3,692 148 3,840Interest expense on DBO 7,348 672 8,020Contributions by scheme participants 138 24 162Actuarial gain (loss) on scheme liabilities 24,345 2,807 27,152Net benefits paid out (4,588) (823) (5,411)Business Combinations - 626 626

As at 31 March 2015 200,210 18,478 218,688Current service cost 4,011 173 4,184Interest expense on DBO 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 17,288 218,293

104

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

RNIB

£’000

Subsidiary charities

£’000

Total

£’000As at 1 April 2014 175,757 13,036 188,793Interest income on scheme assets 7,722 564 8,286Contributions by the employer 4,483 377 4,860Contributions by scheme participants 138 24 162Actuarial gain on scheme assets 29,850 1,375 31,225Net benefits paid out (4,588) (823) (5,411)Administration costs incurred (556) - (556)Business combinations - 51 51

As at 31 March 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 14,330 223,530Actual return on scheme assets2015 37,572 1,939 39,5112016 (1,821) 161 (1,660)

105

25. Group commitmentsa. CapitalAt the year-end, RNIB has no outstanding commitments (2015: £nil). At the year-end Action has outstanding capital commitments amounting to £88,805 (2015: £nil). At the year-end no other subsidiary entities have any outstanding commitments (2015: £nil).

b. Operating leasesAt the year-end, the Group had the following annual commitments amounting to £4,831,000 (2015: £5,827,000) under non-cancellable operating leases.

2016£’000

2015£’000

Land and buildingsExpiring within one year 897 959Expiring between two and five years 2,154 2,448Expiring after five years 1,019 1,434

EquipmentExpiring within one year 376 404Expiring between two and five years 384 582Expiring after five years 1 -

Total 4,831 5,827

106

26. 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 four year period to December 2019, 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 2016 is £3.6million. The accounting recognition of this transaction will take place over the four year period as individual properties are handed over and profit share cash is received.

107

27. Transition to Charities SORP (FRS 102)These accounts for the year ended 31 March 2016 are the first accounts for RNIB Group that comply with the Charities SORP (FRS 102). The date of transition to the Charities SORP (FRS 102) is 1 April 2014. The following reconciliations detail the differences between funds and net movement in funds presented previously and the amounts as restated to comply with the Charities SORP (FRS 102).

Funds as at 1 April 2014 Reconciliation Note Group Unrestricted funds £’000

Group Restricted funds £’000

Group Endowments funds £’000

GroupTotalfunds £’000

Charity Unrestricted funds £’000

Charity Restricted funds £’000

Charity Endowments funds £’000

Charity Totalfunds £’000

Funds at 1 April 2014 as previously stated 75,670 25,335 5,329 106,334 75,670 4,458 5,328 85,456Interest rate swap fair value (a) (4,020) - - (4,020) (4,020) - - (4,020)Multi-employer pension liability (b) (587) - - (587) (587) - - (587)Property revaluation as deemed cost (c) 12,144 6,959 - 19,103 12,144 - - 12,144Funds as at 1 April 2014 under the Charities SORP (FRS 102) 83,207 32,294 5,329 120,830 83,207 4,458 5,328 92,993

Funds as at 31 March 2015 Reconciliation

Note Group Unrestricted funds £’000

Group Restricted funds £’000

Group Endowments funds £’000

GroupTotalfunds £’000

Charity Unrestricted funds £’000

Charity Restricted funds £’000

Charity Endowments funds £’000

Charity Totalfunds £’000

Funds at 31 March 2015 as previously stated 79,640 20,342 5,734 105,716 79,640 4,181 5,733 89,554

Interest rate swap fair value (a) (5,563) - - (5,563) (5,563) - - (5,563)Multi-employer pension liability (b) (560) - - (560) (560) - - (560)Property revaluation as deemed cost (c) 11,991 6,959 - 18,950 11,991 - - 11,991Funds as at 31 March 2015 under the Charities SORP (FRS 102) 85,508 27,301 5,734 118,543 85,508 4,181 5,733 95,422

2015 net movements in funds reconciliation

Note Group Unrestricted funds £’000

Group Restricted funds £’000

Group Endowments funds £’000

GroupTotalfunds £’000

Charity Unrestricted funds £’000

Charity Restricted funds £’000

Charity Endowments funds £’000

Charity Totalfunds £’000

2015 net movements as previously stated 3,970 (4,993) 405 (618) 3,970 (277) 405 4,098Movement on interest rate swap fair value (a) (1,543) - - (1,543) (1,543) - - (1,543)Movement on multi-employer pension liability

(b) 27 - - 27 27 - - 27

Additional depreciation due to transition to deemed cost

(c) (153) - - (153) (153) - - (153)

108

2015 net movements in funds under the Charities SORP (FRS 102) -126301 (4,993) 405 (2,287) 2,301 (277) 405 2,429

Notes(a) Interest rate swap: RNIB entered into an interest swap with AIB for the period 30 December 2011 to 31 December

2026. With the introduction of the Charity SORP (FRS 102) this is now treated as a cash flow hedge against a mortgage also held with AIB. The impact is that the fair value of the swap is now disclosed as liability in the RNIB balance sheet with in-year movements of the fair value charged to other gains and losses in the statement of financial activities.

(b) Multi-employer pension: RNIB participates in the Pensions Trust’s Growth Plan, which is a multi-employer scheme providing 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. Under FRS 102 RNIB is required to include a liability for the net present value of agreed deficit payments. The impact of this change is shown in the tables above.

(c) Revaluations as deemed cost: RNIB has taken the option under Charity SORP (FRS 102) to treat all previously revalued assets within Action as deemed cost. In addition, the property at Judd Street has been uplifted to reflect market value at the transition date. The impact of these changes are shown in the tables above.

109

28. 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 AdvantAGE – Wales Eye Patient Advocacy Service 84

Basic Online Skills – Online Today 1,405Bright New Futures – Future In-sight 181Connecting Older People – Looking Forward 173Empowering Young People – Realise 109Supporting Families – Family Insight 40Investing In Communities – Looking To The Future 168Investing in Communities – IRISS 129Reaching Communities – Optimeyes 214People and Places – All Wales Welfare Rights Service for People with Sensory Loss

312

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

8

Safe and Well – Lisburn in Focus 149Investing in Communities – Advice Plus 32Reaching Communities – Trainee Grade Scheme: Extending the Reach

52

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

21

Heritage Lottery Fund Your Heritage – CultureLink SE 18Our Heritage – Museums in Focus 14Your Heritage – Seeing our history 24

European Social Fund Eye Work Too 103Ada Hillard CT General support 6Agnes Hunter CT Looking Forward 6

110

Alcon Eye Health Projects 30Vision Conference 5

Allergan Eye Health Projects 47Alliance Scotland Self Care Management Impact Fund – You Care

Eye Care24

Awareness Fund Employment 8B & P Glasser CT General support 5Bayer Eye Health Projects 64

Vision Conference 8BBC Children in Need RNIB Cymru 34Blindcraft Trust Positive Steps 40Brownlie CT Haggeye Juniors 10

General Support 8Carmen Butler Charteris CT General support 18Cecil Rosen Foundation Research Library 10Charles & Jane Allen CT Haggeye Juniors 4Children & Young People's Strategic Partnership, Health and Social Care Board

Family Support Service 64

CHK Charities Extending the Reach 10Constance Travis Foundation Talking Books 6Crerear Hotels Trust Looking Forward 5Department of Health HSCVF – Community Eye Health Champions 132

IESD – EIRECS Early Intervention and Rehabilitation in Eye Care Services

92

IESD – Electronic Certificate of Visual Impairment (eCVI)

35

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

29

111

Edward Cadbury CT RNIB Pears Hydrotherapy Pool 5Grand Charity of Freemasons Sight Loss Adviser Haywards Heath 20HMRC Tax Matters – Integrating Tax Advice (extension) 150Jack Simmons Will CT Talking books 8J H F Green Trust General Support 8John Scott Trust Haggeye Juniors 5John Swire 1989 CT Talking books 10Kathleen Bery Sleigh CT RNIB Pears Hydrotherapy Pool 8Loppylugs & Barbara Morrison CT General support 7Mackie Foundation Emotional support 5Millennium Stadium CT RNIB Cymru Activity Week 7Miss Hanson CT General support 1Myristica Trust Talking Books 5NHS Fife Carers Fund Carers Information Strategy Funding – RNIB Bridge

to Vision 201514

NHS Fife Carers Fund Carers Information Strategy Funding – RNIB Carers Café 2014

5

Nesta Time to Talk 61Parenting Education and Support 11

Northern Ireland Executive – United Youth Programme

Youth Works 33

Novartis Pharmaceuticals UK Ltd Eye Health Projects 84Novartis Pharmaceuticals UK Ltd Vision UK 2015 Sponsorship 10Roger Whitfield Foundation General support 5Rowlands CT RNIB Pears Hydrotherapy Pool 5Shanly Foundation Talking Books 5Smith CT General support 5Southern Trust Parenting, Education and Support 57Three Oaks Trust Giant Print 5

112

Tony & Audrey Watson CT RNIB Pears Hydrotherapy Pool 5WT Mattock CT Talking Books 10Welsh Government – CFOG Children and Families Organisational Grant 45Welsh Government – Section 64 North Wales Partnership and Development 27White Top Foundation Haggeye Juniors 6

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. Alcon, Allergan, Bayer and Novartis Pharmaceuticals UK Ltd are all pharmaceutical companies.

113

29. Events after the reporting period

Vote for the UK to leave the European UnionOn 23 June 2016 the UK voted to exit the European Union. Management have started to consider any implications this might have on RNIB and any appropriate potential response. Areas which might be impacted by the consequences of Brexit include, but are not restricted to, economic pressures stemming from the UK's exit, the UK Government's future policy and budgets and associated financial risk, capital market movements, and restrictions on the free movement of EU citizens.

Decision to close Action HotelsOn 25 August 2016 Action announced the strategic decision that it intends to stop running its three Hotels during the next six months. The three hotels require an annual subsidy in order to run them and are each in need of extensive repair and improvement work to keep them safe and enjoyable places for guests to stay. After careful consideration, it was decided that this would not be in the best interest of blind and partially sighted people or the most effective use of the limited resources available to us.

In 2015/16, only around 1,500 blind and partially sighted guests stayed at the hotels. Despite efforts to attract more guests with sight loss, the hotels are increasingly more popular amongst sighted guests. By withdrawing from the hotels Action will ensure its resources are focused on services which will reach more blind and partially sighted people.

It remains a priority for Action that people with sight loss can continue to take independent holidays in a safe and accessible environment. Action is working with Guide Dogs to explore alternative leisure options so that blind and partially sighted people can holiday freely with the confidence that their needs will be met. Options to transfer ownership of the hotels in their current form are also being considered.

Action owns the freehold interest of the Lauriston Hotel in Weston-super-Mare and the net book value of the land and building is £0.3million at 31 March 2016. Action leases the Cliffden Hotel in Teignmouth, South Devon and the Windermere Manor Hotel in Cumbria from Guide Dogs with the rentals charged to the SoFA. The lease agreements with Guide Dogs allow for the leases to be terminated without penalty if they can be shown to be financially non-viable.

114

Direct income and expenditure relating to the hotels in 2015/16 was £2.6million and £2.7million respectively. Taking into account capital expenditure requirements and indirect support costs the hotels are clearly not financially viable in their current form.

Until a decision has been made on the future operation and ownership of the hotels it is not possible for Action to accurately estimate closure costs, although it's anticipated they will not exceed £1.1million.

115

RNIB acknowledges support fromBig Lottery Fund for the following projects:Future In-Sight and Wales Eye Patient Advocacy Service Continuation Project, Online Today, Looking Forward, Realise, Lisburn in Focus, Talk and Support Supporting our volunteers through Mentoring, Trainee Grade Scheme – Extending the Reach, Advice Plus, All-Wales Welfare Rights Service for People with Sensory Loss, Looking to the Future, Optimeyes, IRISS, Family Insight.Awards for All for RIBS (Reducing Isolation, Building Skills)Heritage Lottery Fund for the following projects:Seeing Our History, Museums in Focus and CultureLink SEAlliance Scotland – Self Management Impact fund for You Care Eye CareEuropean Social Fund – Disability Employment Service for Eye Work TooNHS Fife Carers Information Strategy Funding for RNIB Carers Café 2014 and RNIB Bridge to Vision 2015Nesta for Time To TalkShared Care Scotland – Better Breaks Fund for RNIB Activate 2014

116

Who’s who at RNIB

Patron, President and Vice-Presidents

PatronHM The Queen

PresidentDame Gail Ronson DBE

Vice PresidentsSir John Beckwith CBEThe Rt Hon David Blunkett MPRichard BrewsterProfessor Ian Bruce CBEJeremy BullHaruhisa HandaDr Euclid HerieLady JarvisPenny Lancaster-StewartLord Low of Dalston CBETrevor Pears CMGSir Mike RakeDr Dermot SmurfitRod Stewart CBEThe Rt Hon Earl of StocktonHis Grace The Duke of Westminster KG, CB, CVO, OBE, TD, CD, DL (now deceased)

117

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 Strategic Management Team

Chief Executive OfficerLesley-Anne Alexander CBE MSc

Group Director, FundraisingWanda Hamilton BA (Law) MInstF

Group Director, PeopleCorinne Mills Chartered FCIPD

Group Director, ResourcesRohan Hewavisenti M.Eng ACA (from 24 April 2015)

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

Managing Director, Places, RNIB CharitySally Harvey BA (Hons)

Managing Director, Solutions, RNIB CharityNeil Heslop OBE LLB (Hons) MBA CIM (Dip.M)

Chief Executive, Action for Blind PeopleMiriam Martin

118

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

119

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 are listed below. Following a re-structure within RNIB Group, the Board was reconstituted with 12 Trustees with effect from 1 September 2015. The number in brackets after each name represents attendance at Board of Trustee meetings during 2015/16 of those they were eligible to attend. Current members of the Board of Trustees, together with a brief biography of each individual, are listed below. Full details of membership of committees are available from the Governance team at RNIB’s Judd Street address. Eighty per cent of the Board are blind or partially sighted.

Kevin Carey – RNIB Group Chair (5 of 5) Kevin Carey is in his third term as Chair of the RNIB Group, having held this office since 2009, prior to which he was Vice-Chair from 2000 to 2009. He also chairs RNIB’s Governance, Remuneration and Fundraising Committees. He is the President of the Transforming Braille Group LLC, a Trustee of G3ict and Chairman of the Government’s Alliance for Digital Accessibility. Kevin has published eleven books and is a Lay minister in the Church of England. Born with little sight, he lost his residual vision in his mid-20s. He lives with his wife Margaret in Sussex. Kevin is also a Trustee of RNIB Charity.

Eleanor Southwood – RNIB Group Vice-Chair (5 of 5) Ellie became a Trustee in 2010. Following two years as RNIB Vice-Chair – External Affairs, she became Vice-Chair of the newly constituted RNIB Group Board in July 2014. Ellie’s career spans the public, private and non-profit sectors. She is currently a consultant to non-profit organisations on senior recruitment, executive team development 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. Ellie is also a Trustee of RNIB Charity.

120

Alan Tinger – RNIB Group Honorary Treasurer (4 of 5) Alan is a Chartered Accountant (FCA) and Companion of the Chartered Management Institute (CCMI). He is currently Chair – LOC Central Support Unit, Non-Executive Director /Consultant – Federation of (Ophthalmic & Dispensing) Opticians and a Member of the Optical Confederation Leaders Group and has other interests outside the opticians sector including Chair of a Housing Association. His previous appointments include directorships of listed companies including a major opticians group. Alan is a Trustee and Treasurer of RNIB Group and Chair of its Audit Committee and of its Investment Committee. He is also a Trustee of Action for Blind People.

Margaret Bennett (4 of 5) Margaret is in her third term of office as a Trustee, having first been appointed to the Board in 2010. She is the Chair of RNIB’s Places Standing Board. A Chartered Accountant by profession, her portfolio of work includes Finance Director of Tinder 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. Margaret is also a Trustee of RNIB Charity.

Derek Child from 25 February 2016 (0 of 0)Following study in further education when he was losing his sight in his early twenties, Derek achieved a degree in Sociology from Durham University. Later he obtained an MA in Applied Social Policy and a CQSW at the University of Warwick. Derek joined the Open University in 1982 as Academic Advisor on the Education of Disabled Students and in 2004 became the University's Head of Equality and Diversity, leading a team of four. Derek was a founder Trustee, Chair and until its closure in April 2011, an Honorary Vice President of Skill (the National Bureau for Students with Disabilities) which campaigned and influenced Government and other policy makers for over 37 years. He has also served for many years as a Trustee at RNIB. He was elected Chair of RNIB Charity in 2014 and appointed as a Trustee of RNIB Group in 2016.

Simon Finnie (5 of 5) Simon is in his first term of office as a Trustee, having been appointed to the Board in 2014. He is the Chair of RNIB’s Solutions Standing Board. Simon is the Group Performance Director for Kier, the FTSE-250 Construction and Services Group. As part of Kier’s Executive Management Team, he is responsible for driving the strategic improvement agenda across the whole organisation, specifically by identifying opportunities for margin enhancement, leading the delivery of

121

transformation programmes, evaluating acquisition and divestment opportunities. He has over 15 years’ experience across a wide range of sectors. He is married with children and lives in Hertfordshire. Simon is also a Trustee of RNIB Charity.

Dr Heather Giles (5 of 5) Heather is in her second term of office as a Trustee, having been re-appointed to the Board in 2014. She is the Chair of RNIB’s Engagement Standing Board. 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 and is also a Trustee of RNIB Charity.

Vidar Hjardeng MBE (5 of 5) Vidar has a long-previous association with RNIB, having served on the Board in the past. He returned to the Board in July 2014 as one of two new independent Trustees. 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. He lives in the Midlands and with personal experience of visual impairment, is proud of his association with charities working with, and for, fellow blind and partially sighted people, including Focus Birmingham, the National Audio Description Association, and Vocal Eyes which he chaired for four years up until 2012. Vidar is an independent Trustee of RNIB.

Terry Moody (5 of 5) Terry has a long involvement with RNIB’s governance having served three terms as RNIB Group’s Honorary Treasurer. He re-joined the Board as an independent Trustee in July 2014. 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. Terry is an independent Trustee of RNIB.

Dr Mike Nussbaum (4 of 5) Mike joined the Board in May 2011 and is the Chair of Action for Blind People, one of RNIB’s Associate Charities. 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 for seven years until September 2009 and therefore, very ably equipped to fulfil his role as RNIB’s Trustee volunteering champion. Mike holds a

122

number of other appointments including as a Trustee of Guide Dogs for the Blind Association, a Trustee of Vision 2020 UK and the Equality and Diversity Forum.

Keith Valentine from 1 September 2015 (3 of 3)Keith Valentine is the Deputy CEO at the Thomas Pocklington Trust, holding special responsibility for the Charity’s work in leading substantial improvements in the way the sight loss sector serves the blind and VI community. Having worked for many years leading urban renewal programmes Keith has directed his energies to the sight loss sector as his own loss of sight progressed, affording him a unique perspective on the needs and aspirations of the people who are served by Pocklington’s work. Keith is chair of the of the VISION 2020 UK Charities Forum addressing sector wide quality and coverage issues. Keith is from a London family traceable at Moorfields Eye Hospital to mid Victorian times, with sight loss in every generation.

Sandi Wassmer from 1 April 2016 (0 of 0)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 & 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 public speaker. She has worked in a range of commercial organisations throughout her career, as CFO & COO of Universal Studios' SyFy UK TV Channel, COO of Unilever's first dotcom investment and MD of digital agency, Copious.

The following members served on the Board until the date shown:David Hewlett (1 September 2015 until 24 February 2016) (1 of 3)David Quigley (until 25 February 2016) (4 of 5)

Independent members of the Audit CommitteeMichael BarberFrances Teague

123

UK Members’ ForumOur UK Members’ Forum was established to give us a closer rapport with our membership. The forum was a place for membership representatives to come together and discuss the issues of importance to them. These issues were then forwarded to the Board of Trustees. It gave our members a direct link to RNIB’s most senior governing body and helped identify and shape major strategy, policy and service issues. The UK Members’ Forum met twice a year (one meeting included the Annual General Meeting). All members were invited to the forum meeting in their region or country, and each forum chose its representatives to the UK Members’ Forum.

At the start of 2015 we began a process of consultation on creating a new single community of blind and partially sighted people bringing together the three existing communities of membership, campaigning and Action Connect. Following extensive consultation and discussion, in December 2015, the creation of RNIB Connect was approved. The primary aim of RNIB Connect is peer connection and mutual support. The final meeting of the UK Members’ Forum was in November 2015 and we are now in a transitional phase moving towards implementation of the new single community. Under our old governance structure only UK Members’ Forum representatives could vote for Trustees on RNIB Charity. Under the single community, all RNIB Connect members who are aged 16 or over; are blind or partially sighted; are resident in the UK and who register to vote will be able to elect RNIB Charity Trustees.

UK Members’ Forum RepresentativesUK Members’ Forum Representatives details are included below as they were active during 2015/16 and will continue play a transitional role as we establish RNIB Connect. However, they no longer have a formal role in the governance of RNIB.

South EastTimothy Bamber Kevin Deacon (until 30 March 2016)Mike Pearson (Region chair) Michael Radford

South WestElli Bennett (until 29 February 2016)Helen Mathias

124

David Ridgway John Vickery (Region chair) (until 29 February 2016)

LondonMohammed Mohsan Ali (from 1 June 2015)Elizabeth Cooke Jim Leeder (until 2 July 2015) Jackie Venus (Region chair)

East of EnglandMichael Cassidy (Region chair) Marian Knights Marion Mansfield Wayne Witney

East MidlandsGordon Chandler (until 2 August 2015)Sophia Chandler (Region chair) (until 2 August 2015)John Godber Gena Parker

West MidlandsMohammed Abbas-RashidMike Hughes (Region chair) (until 1 April 2016)Patricia Mulqueen-Wood Mark Williams

Yorkshire and the HumberLiz Frankland David Haynes

125

Roy Ruddick BEM (until 31 December 2015)Barbara Stephenson (Region chair)

North WestMichael Allen (Region chair) Terri Balon (from 7 May 2015)Anne Bradbury Hayley Reed

North EastJillian Grant (Region chair)Chris Grethe Denise Ross Alison Wheatley

WalesPeter O’Driscoll Frances Jones MBE Mark Matthews Robert Teague

ScotlandAmanda Burt Rod Murchison Hussein Patwa Ken Reid (from 16 June 2015)

Northern IrelandMaureen Crilly (from 25 June 2015)Brian Murray

126

James Nash Alan Owens

127

Contact details

RNIB105 Judd Street, LondonWC1H 9NEt: 020 7388 1266

RNIB CymruJones Court, Womanby StreetCardiffCF10 1BRt: 029 2082 8500

RNIB Northern IrelandVictoria House, 15-17 Gloucester StreetBelfastBT1 4LSt: 028 9032 9373

RNIB ScotlandGreenside House, 12-14 Hillside CrescentEdinburghEH7 5EAt: 0131 652 3140

128