Sense Annual Report & Accounts 2015

Annual Report and Financial Statements 2015

Sense Group: Sense, Sense International and Sense Scotland

Chair’s welcome This is our 60th anniversary year and so this birthday inevitably gives us an opportunity to reflect on our history. The original small group of parents, brought together in 1955 by our founders Peggy Freeman and Margaret Brock, would no doubt be surprised and pleased. I doubt they would have believed that their early campaigning for better services for children with congenital rubella syndrome could possibly have laid the foundations for what Sense has become today.

This report reflects our consolidated accounts and therefore provides information from the Sense ‘family’. Sense Scotland continues to prosper and Sense International continues its challenging and inspirational work. Earlier in the year we hosted an international conference in Belfast with over 300 delegates. We have also opened our first day services base in Wales. This wide range of interests and services does, of course, bring its own challenges. This report outlines how Sense continues to meet these difficult times.

I am delighted that our family of charities remain aspirational. We continue to celebrate the huge achievements of the individual and embark on ambitious, groundbreaking plans for the future, such as Sense’s TouchBase centre in Birmingham. Both approaches are equally important. TouchBase will provide Sense and the West Midlands with a vibrant centre for services for people with multi-sensory impairments.

It will also be an important resource for the community in Selly Oak and those living further afield. It is this approach, making facilities available to people with disabilities and to the wider community, which makes TouchBase so special.

We are extremely grateful to all the trusts and individual donors who make our work possible. It is absolutely true that we simply could not manage many of our activities without these wonderful people.

Our many supporters donate money, run marathons, buy goods from our shops and take part in supporting Sense in a host of other ways.

As you will read in the report, more than 1,800 people volunteered with us, doing everything from working in our shops to helping on our holidays programme.

I am also very grateful to the staff of Sense, the Executive Team, and as ever to my fellow trustees who continue to support us in ensuring that, despite the difficult environment, Sense will remain ambitious for the people we support long into the future.

John Crabtree OBE Chairman

2

Sense Group: Report and accounts for the year ended 31 March 2015

Chief Executive’s introduction Running a diverse organisation such as Sense is never easy but we continue to deliver services to a wide range of people. Our services range from direct support in accommodation, day packages, children’s support, holidays and short breaks, through to information, advice, training, and public policy. Every bit of this tapestry is important and contributes to making Sense special.

Our sector, and Sense is no exception, is encountering huge challenges at the moment. We are faced with ever shrinking budgets, increasing regulation and growing need. Sense has always responded to difficult times; indeed, that was why we were founded 60 years ago. Families did not accept that their children had no future and the parents responded by establishing what we now know as Sense. As an organisation we retain that resilience which is still reflected in our thinking today.

We have been reviewing our current strategy and preparing for the next three years, beginning in April 2016. Our plan is to continue to develop innovative and creative solutions to the challenges we face. That’s why our work features arts and wellbeing, sports and getting active, social prescribing and innovative short breaks. The report also notes our intention to protect the current services much valued by our beneficiaries.

As part of being solution-focused we have been preparing for the development of our new TouchBase resource in Birmingham. The project is based on social enterprise with a strong theme of partnership.

Our staff are clearly key to the delivery of complex and diverse services.

We are a significant employer with an extremely skilled workforce, and we remain committed to the training and development of all our staff.

A vital area of our work is the development of communication skills.

There has been an increasing emphasis on partnership working, both with voluntary organisations and a range of statutory agencies. We are grateful to our colleagues in these agencies and look forward to developing and strengthening our joint working.

Our annual report also notes the remarkable work of our volunteers and supporters – fantastic people who do our charity a great service.

I hope our report gives an insight into Sense and our work.

Gillian Morbey OBE Chief Executive

3

4

Sense Group: Report and accounts for the year ended 31 March 2015

Contents Chair’s welcome

2

Chief Executive’s introduction

3

Trustees’ report

6

Sense – who we are

6

Sense services – what we do

8

What we achieved in 2014-15

10

Sense objectives for 2015-16

21

The governance of Sense

22

The Sense Group

25

Sense Scotland

26

Sense International

30

Statement of Sense Council’s responsibilities

34

Sense Group trustees and senior staff

36

Financial review 2014/15

38

Independent auditors’ report

42

Consolidated statement of financial activities

44

Accounting policies

48

Notes to the accounts

51

Major supporters

70

Charity information

71

5

Trustees’ report Sense – who we are Our vision A world in which all deafblind children and adults can be full and active members of society.

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

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

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

These put our values into effect and describe our behaviours and expectations, which apply to staff, trustees, deafblind people and families. They flow into our practice, through induction, training, information materials, policies, quality audits and staff performance reviews.

6

Sense Group: Report and accounts for the year ended 31 March 2015

2015: Our 60th anniversary 2015 is our 60th anniversary. Sense was set up in 1955 after Peggy Brock and Margaret Freeman, whose children were born deafblind after they contracted rubella, contacted ten other families with rubella children.

Together they set up the Rubella Group with assets of £2.5s.0d (approximately £48 today) to campaign for help at a time when there was little understanding of deafblindness and few services for their children.

Peggy, Margaret and many of the parents who set up the organisation, which became Sense in 1997, continued to actively support us for many years. We owe them a great deal.

In the last 60 years Sense has become an organisation that provides a wide variety of services to people with sensory impairments. There is now a Sense Group, working not only in all the nations of the United Kingdom, but also globally, through Sense International.

The people who need our support today • Approximately 256,000 people in the UK have significant hearing and sight impairments.

• Many also have additional disabilities and/or learning and other difficulties.

• The number of older people with both sight and hearing loss will grow significantly in the future.

• This is also a global challenge. Our sister charity, Sense International, is supporting deafblind people in seven countries around the world.

7

Sense services – what we do Sense supports children and adults who are deafblind and/or have multi-sensory impairments in a number of ways. Our services are funded through charitable donations, grants and statutory fees. They include: • Support for children and young people, which includes: support to families with young children, such as assessments; support during the transition to adulthood; education – including schools liaison and statementing support; intervenor and communicator guide services; holiday and activity schemes; supported living assistance; support groups and forums. (See the case study on page 14).

• Community services, including: resource centres that provide meaningful activities and development for people; our college where deafblind people can learn and develop; the training and provision of intervenors and communicator guides who assist deafblind people to interact with the external world. (See the case study on page 13).

• Accommodation services that are tailored to individual needs. We provide residential services where a small number of people live together as well as supported living, where we support people to live in their own homes.

• Arts and wellbeing activities, which include: drama and theatre programmes; visual and tactile art; social prescribing; dance; sports programmes; and working with museums and cultural providers. (See the case study on page 16).

• Specialist information, advice and services on a range of issues for deafblind people or people with single sensory impairments with additional disabilities, their families, carers and the professionals who work with them.

• Undertaking research, often in partnership with other organisations, to increase understanding of the issues that affect the people we support.

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

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

• Increasing public awareness of multi-sensory impairment and of the ways we help and support people.

How we provide these services We work with a range of partners, including local authorities, housing associations, medical staff, schools, art galleries and others, to provide services tailored to the needs of the individual. We also work directly with people who want to use their personal budget on our services.

The support network Sense supports families, giving them a voice and enabling them to share information and offer much-needed support to each other. The number of active branches has increased to 12 across England and Wales. They provide support for three main groups: • Family members and parents of deafblind adults • Deafblind children and their families • Deafblind adults, mostly people with acquired deafblindness, including a hearing and sight impaired group and an older adult deafblind group.

8

Sense Group: Report and accounts for the year ended 31 March 2015

Their activities range from fundraising, so that they can provide activities and equipment for deafblind children and adults, meeting socially for mutual support and fun, and providing information to their members.

This information is also used to campaign and raise awareness of deafblindness.

There are plans to develop new support groups in the Midlands and South East of England later this year.

Our volunteers We are delighted that so many people choose to volunteer for Sense. More than 1,800 people did so in 2014/15, contributing more than 485,000 hours of their time. Over 1,150 volunteers gave time in our shops and 220 on our holiday programme and weekend events. More than 200 people got involved in supporting fundraising events, and a further 240 supported other services, groups and activities. One in ten of our volunteers had a multi-sensory impairment.

Our members Sense is a membership organisation. We have over 4,000 members and we try to keep them up-to-date with the latest news and information from across Sense and elsewhere. Our membership scheme, mySense, gives members the opportunity to link up with one another, to share experiences and knowledge, and to find out about the support and services that are available. The scheme offers a strong collective voice and provides support and guidance for the organisation’s ongoing work.

A big thank you to all our donors, volunteers and supporters We receive financial donations from a wide range of individuals and organisations, and many others give their time and skills. People’s generosity in supporting Sense with their money and time is wonderful, and some of the activities they undertake are amazing.

There is a list of our major supporters at the end of the annual report, but we are also extremely grateful to everyone who provides us with financial or other support; from people who regularly make monthly donations, which allow us to plan funding for our activities, to the 500 people who ran a marathon, walked for 24 hours on the Ridge Walk or went on a trek last year. We would also like to thank those people who very generously remembered us in their wills, or those of you who have donated articles to our shops – or bought items from them. Last but not least, a big thank you to the 1,800 people who have volunteered for Sense.

Without your help we would be unable to provide for the people we support. Many thanks to you all!

9

What we achieved in 2014-15 In 2014-15 we implemented the second year of our three-year Growing, Stronger, Together strategy.

We had a number of priorities, including: increasing the number of people who receive services from us; increasing our financial turnover; developing new resource centres; increasing our indirect support to people through our website, advice and information and our policy and campaigning work; building on our quality systems; increasing the number of members and people involved in events or as volunteers; increasing awareness of Sense and deafblindness.

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

• Our Children’s Specialist Services Team supported 1,039 children and young people across England, Wales and Northern Ireland. This was 4% more than the previous year and included 185 families who contacted us for the first time.

• We have also opened a new centre in Barnet – The Hadley Family Centre – to support children and families in South East England.

• We successfully completed ‘Getting a Result’, a two-year transition project funded by the Department for Education. The project worked with 19 young people in two groups and developed good practice materials that have been much commended by families and professionals. The resources were downloaded from our website over 700 times in the first few weeks.

• Work on two other transition projects, one funded by the Big Lottery Fund in Wales and the other by the City Bridge Trust in London, continue to go well.

• The factsheet from the CHARGE syndrome professionals’ pack, which focused on a major cause of multisensory impairment to children and young people, was downloaded over 10,000 times in 2014-15. The pack is still available on our website.

Adults Sense believes that each individual person should be able to choose the lifestyle and support that is right for them. Our specialist accommodation services, including both residential and housing support and community services, enable people to live as independently as possible, offering a range of housing, educational and leisure opportunities to suit each individual.

• We continued to support around 300 people in our residential and supported living services across England and Northern Ireland. A new supported living project opened in Exeter in March.

• We redeveloped our community resource centre in Barnet, previously called the Anne Wall Centre. The centre has been transformed by a £1.5m refurbishment, and has reopened as TouchBase South East, providing a greatly enhanced standard and range of facilities.

• We have taken forward the development of our new TouchBase centre in Birmingham. (See the case study on page 11).

• The number of people supported in one-to-one community services, including services from communicator guides and intervenors, increased to 329. The number of hours delivered increased from 7,500 per month to 8,300.

10

Sense Group: Report and accounts for the year ended 31 March 2015

• In Northern Ireland, we completed a substantial ‘needs and numbers’ survey for the six health and social care boards. This raised awareness of the needs of people who are deafblind in Northern Ireland, and will be a major step forward in the development of services to meet their needs.

Ensuring high quality services • In figures produced by analysis firm Laing and Buisson, Sense achieved the fourth highest CQC compliance rate of all large care providers (those with more than 30 homes) for people under 65. The figures show that 95.7% of Sense’s homes were fully compliant with CQC inspection standards. Many have also received a good rating.

• Our own ‘I’ statements audit process continues to evolve and will now principally report on ‘outcomes’ for individuals receiving support. Key features include reviewing the effectiveness of person centred planning and understanding whether people’s goals and aspirations are realised.

• We have implemented a new quality framework that uses seven self-assessment tools across all operational services. This will enable us to evidence compliance against regulatory, external and internal standards, and drive improvements through sharing best practice.

• Our Quality and Safeguarding Boards continue to meet regularly with an external chair and members.

TouchBase Birmingham: Sense’s exciting new community centre TouchBase is Sense’s innovative new development in Birmingham for people who are deafblind, those with sensory impairments and the wider community. Construction of the TouchBase building commences in winter 2015, and the centre will open in 2017. TouchBase will provide both specialist services and facilities for the community, including a café, conference and training facilities, an arts and performance area, gardens and a community space for everyone to use. TouchBase will deliver significant social and economic value, contributing towards the regeneration of the area and creating 130 new jobs, whilst supporting people with disabilities into full-time employment.

It will be an exemplary model of care that is transferred to other communities in the UK. We are working in partnership with as many people as possible to make the vision a reality, including neighbourhood groups such as C4PSO, Birmingham City Council, University Hospital Birmingham and Birmingham Children’s Hospital, and the business community across the West Midlands.

We have seven TouchBase Champions who are local individuals with disabilities and family members.

They help to raise awareness of our work, and provide a unique insight into many aspects of the design – particularly accessibility elements in relation to navigating around the building, its lighting and acoustics. Sense has already secured £2.1m from the Government’s Regional Growth Fund, and there is a fundraising capital appeal programme to support the project. Other trusts, individuals and organisations, such as The Wolfson Foundation, The Eveson Charitable Trust, The Rowlands Trust, The 29th May 1961 Charitable Trust, Birmingham Post and Edward Cadbury Charitable Trust have kindly supported our project, and we are extremely grateful to them for their generous contributions.

11

Older people As population demographics change, increasing numbers of people are experiencing combined sight and hearing difficulties as they get older. Sense provides support, information and training to enable older people to live as independently as possible, helping them to overcome barriers and combat the isolation that many older people experience.

• This includes providing communicator guide schemes in some parts of the country so that people have help to go out, attend appointments and go shopping. We are also working with a number of local authorities to help them to provide such schemes themselves.

• We are also working with a range of partner organisations on training packages that use a screening tool for early recognition of sight and hearing loss in older people. These packages have been developed following an earlier research project.

• Sense continues to be one of five partner organisations that form the Campaign to End Loneliness, and is campaigning so that the needs of older people with combined hearing and sight loss are recognised. We have launched new printed and online materials for families and friends of older people who experience difficulties with their hearing and vision.

• The Enjoy Life booklet – which was funded by the Department of Health – provides tips and advice on how to support older people and enable them to get the best out of life. One version of the booklet is aimed at families from a South Asian background, with key headings and tips translated into Gujarati. There is also an online video, which describes the main points from the leaflet in Khichree, a combination of South Asian dialects.

• In addition to the social prescribing groups (see the arts and wellbeing section on page 15), we are carrying out a research project looking at the experiences of older people with a dual sensory loss living in the community. This will inform our work with older people in the future.

Supporting older people to live independently Jennifer is 60. Her sight has deteriorated due to glaucoma and other conditions that have also caused significant hearing loss. The combination of a hearing and visual impairment has had a huge impact, not only on everyday tasks – such as cleaning the home, cooking, and reading her own correspondence – but also on her mobility, ability to leave her home and get around without support.

Sense arranged for Jennifer to have a specialist assessment and a temporary communicator guide while we worked with her to recruit someone to support her permanently – paid for through her direct payment. Jennifer was involved in the shortlisting and interview process, and now has a permanent communicator guide for five hours a week. The guide helps her with reading, correspondence, shopping, cooking, and also to access community groups and events.

“Having a communicator guide is terrific,” said Jennifer. “I wish I had agreed to it years ago. It has a very positive impact, especially with everyday tasks such as sorting post and shopping – my communicator guide acts as my eyes and ears. My communicator guide also supports me on outings and social events at places I would never be able to get to on my own.”

“Of course, everyone wants to be as independent as possible for as long as possible. I have suffered depression due to my sight and hearing loss and had to readjust my outlook on life. I don’t get upset about things now because I have support.”

12

Sense Group: Report and accounts for the year ended 31 March 2015

Sense College Our specialist Sense College, located across nine different sites, offers specifically designed multi-sensory education centres for young people and adults who have sensory impairments and additional disabilities.

• The number of people supported by our College increased from 235 to 251 in 2014-15.

• The College had a full Ofsted inspection in June 2014 and retained its ‘Good’ level 2 rating.

Using a direct payment to access education at Sense College Tony joined a Sense College Resource Centre early in 2013, attending for three days a week and taking part in sessions including horse riding, crafts, swimming and woodwork. Having his direct payment has allowed him the freedom to access this service, which is sensitive to his sensory needs and run with the help of specially trained staff.

Developing Tony’s communication has been a priority for staff at the centre. He has been encouraged to express himself, both directly through sign language and indirectly through his creativity. Tony is artistically talented and is justifiably proud of his work. He also has a great sense of fun and is a very caring individual who has forged bonds with other people at the College.

Tony’s family are delighted with the changes they have seen since he started at the resource centre.

His confidence has increased, as has his ability to communicate through the use of sign language.

He has also made many new friendships.

The holidays programme Our holidays programme has developed extensively over the past 40 years. These holidays are extremely important, giving people of all ages new experiences and the chance to meet and spend time with different people.

• Last year the programme supported 119 deafblind children and adults (with an age range of 5 to 80) on 27 different holidays, made possible by the support of 160 volunteers, including three volunteers who were previously holidaymakers themselves.

We are very grateful to the Geoff and Fiona Squire Foundation for providing funding for our holidays programme.

13

Short Breaks programme Short breaks benefit both children and their families. They not only give the children on the break an opportunity to try new activities, but importantly give parents and carers the opportunity to also have a break. This means they can catch up with everyday activities, relax, spend time with their other children and maintain their social life. For many parents it is their first break from caring.

• Through increased partnership working with other organisations and local authorities, we increased our short break provision by 1,000 hours. We offer a range of short breaks, which take place: –– During the day or evening –– At weekends –– Over a period of a few days, including longer planned holidays away from home.

• We were commissioned by Birmingham City Council to deliver short breaks for children and young people with complex needs, and we intend to expand the range and scope of short breaks we offer across the country.

• An independent evaluation of the Sense Short Breaks programme was carried out by the University of Chester in December 2014. Their report provided clear evidence of the benefit of this respite: –– 83% of carers felt more able to provide effective care after the break –– 100% of parents said the short break was the most significant break they get from their caring responsibilities –– 100% of the beneficiaries felt happy with the break provided by Sense.

Helping children and their families take a break Nine-year-old Tyrese lives in Birmingham with his mum Vicky. Like many boys his age, Tyrese loves football, playing with his cars and watching films.

Tyrese was born with a rare genetic condition called CHARGE, and as a result he is profoundly deaf and has vision in one eye. He attends a local special needs school in Birmingham and uses British Sign Language and hand-under-hand signing to communicate.

Last October Tyrese went on a four-night trip to Macaroni Woods, a safe and secure woodland environment in the Cotswolds with a wide range of indoor and outdoor activities – as well as an onsite sensory room. “Tyrese loved Macaroni Woods,” said Vicky. “There was lots of space, which he needs, and he loved interacting with the animals.”

The holiday was led by two leaders with experience of working with people who have multi-sensory impairments, complex communication needs, and a range of learning disabilities. Tyrese also received one-to-one support at all times from an experienced volunteer, which enabled him to participate in a range of social and physical activities. Vicky said: “The support was great; there was a deaf support worker who used British Sign Language so Tyrese was very happy to sit and chat away to them.”

The short break meant that Vicky could have some well-earned rest on a holiday with her parents. She said: “I haven’t been away without Tyrese since he was born so I took the opportunity to explore part of the UK I have never been to before, and somewhere Tyrese would probably not enjoy much. I would definitely recommend short breaks; it gave Tyrese the opportunity to be part of a group and make new friends. The experience for both Tyrese and myself was fantastic.”

14

Sense Group: Report and accounts for the year ended 31 March 2015

Arts and wellbeing Our arts and wellbeing programme, which enhances the lives of people with sensory impairments through creative activities, continues to expand. We are working with a growing range of external partners, artists and cultural venues to provide a variety of activities for people with sensory impairments. We have found that engaging in these activities contributes to new skills, improved self-confidence and increased positive mental wellbeing.

• We are delighted that Sport England is funding the Deafblind Active project for two years to improve awareness and deliver accessible and sustainable sports activities to deafblind people across London and the West Midlands. We have so far organised yoga, cycling, football and gymnastics sessions.

• We have reached at least 998 people through our arts and sports programmes in 2014-15. This includes 116 people who have accessed our outdoor recreation programmes and 110 people who have accessed a sport activity.

• Support for the production of high quality arts, both through our services and externally available programmes, is increasing, for example: –– Public exhibitions of two sensory tactile life history quilts co-created with groups of older people with sensory impairments at the Victoria and Albert (V&A) Museum of Childhood and Islington Museum.

–– A sound installation involving 60 young people with sensory impairments from three separate groups, which was publically exhibited thanks to support from a Touring Grant awarded by the Arts Council.

We hope to continue working with the sound artist to build and exhibit elsewhere.

–– Two public art exhibitions by deafblind artists in Lincoln and Exeter, a public exhibition of a sensory photography project, and a museum ‘takeover’ day in Lincolnshire that showcased a project by our Spalding service, which involved poetry, storytelling, drama, music, craft and photography.

• We have worked with the Victoria and Albert (V&A) Museum to increase accessibility to their collections through ‘sensory bags’, which will be available to the public after the launch in August 2015.

• We continue to provide theatre and dance opportunities, establishing new relationships with dance and theatre companies. Our long standing relationship with the Birmingham Hippodrome continues and we provide weekly dance sessions for deafblind people.

• We continue to develop new service models in order to reach new communities of people in new ways.

For example: –– Continuing to support the social prescribing group in Rotherham for older people experiencing social isolation. This involves 40 people, is run at one of our community services and focuses on improving wellbeing through arts and culture. An evaluation showed that there had been an improvement in mental wellbeing as a result of attendance at the group.

–– We have also developed a scheme in Hounslow for older people with a visual or hearing impairment, offering an arts group and a walking group. It is based on referrals from supported housing schemes and is open for people to self-refer. It will grow to involve up to 40 people with further people joining every three months.

15

Supporting people to get active Rahan, who lives in residential accommodation in Birmingham, takes part in weekly gymnastics sessions, which give him the space and freedom to nurture his natural strength and balance.

“At home, Rahan is always perching and balancing on things, but there’s not much room,” said Jayne, the Registered Care Manager.

“The gymnastics sessions enable him to enjoy physical activity in a spacious environment.

He can try the balance beams and the trampoline, and it broadens what he can do.”

In addition to the physical benefits, a trip to the gym club gives Rahan the opportunity to interact with other deafblind people, who he may otherwise not come into contact with.

Jayne described how important it is to work with external sports partners, as it helps “widen the circle of support and the range of people who are involved in and enrich Rahan’s life”. It may be scary at first to walk across a thin beam a metre up from the ground, and the gymnastics coach guiding them may not have worked with a deafblind person before; however, this project is helping to break down fear and apprehension on both sides.

The long term aim is to create sustainable partnerships with organisations so that they feel confident in delivering sessions that take into account a deafblind person’s needs, and adapt their session to accommodate them. It is also about helping deafblind people to experience new activities, and give them the support and confidence they need to enjoy them regularly.

16

Sense Group: Report and accounts for the year ended 31 March 2015

Technology The development of technology is of particular importance to people with sensory impairments, enabling communication, access to information and increasing independence.

• Sense’s current focus is on: –– Internet technology found in most homes, and closing the digital gap often experienced by older and disabled people –– Aids and equipment that enable support, control of the environment, dignity, choice, control and independence in daily life –– Sensory and communication technologies that help solve difficulties with communication, access to information and mobility.

• Through a range of projects, support and advice, Sense is embedding the use of technology in our services, and helping people to get the right technology in place and use it effectively.

• Our current projects include: –– Online Today, a new Big Lottery-funded project led by RNIB, with Sense as a delivery partner, to help people with sensory loss across the UK get online –– Making WiFi internet access available to everyone who uses our services –– A music project that explores the environment and uses sound recordings and music in a way that develops communication skills, builds confidence and breaks down assumptions about what is and isn’t possible –– Alert IT, the integration of monitoring technologies into the services Sense provides, resulting in improved wellbeing, greater dignity, choice, control and support.

Knowledge and information • Our front line advice staff responded to over 2,500 enquiries and requests for support during the year.

• Six research projects are underway. In collaboration and partnership with universities and other charities, we are exploring: –– How older people with sensory loss use technology –– The value of communicator guide services to individuals –– The impact of changes to welfare benefits on deafblind people –– The evidence base for social prescribing services –– The similarities and differences between multi-sensory impairment and autism –– The experience of health services for people with rare syndromes.

17

Campaigns, policy and awareness Sense strives to increase understanding of deafblindness among service providers, opinion formers and others – and campaigns vigorously for improved rights and access for deafblind people. Last year, we effectively influenced the Children and Families Act 2014, the Care Act 2014, and the Social Services and Well-Being Act (Wales).

• When the final versions of the Children and Families Act Code of Practice and the Care Act guidance were published they contained significant content of benefit to deafblind people.

• We have produced materials to support local authorities and other professionals to implement both pieces of legislation effectively, and these have been very well received. In particular, the requirement for trained assessors in the Care Act has significantly raised local authorities’ awareness of deafblindness.

• In Wales we have successfully lobbied to ensure that existing rights for deafblind people are included in the Social Services and Well-being Act (Wales) Code of Practice.

• Sense receives funding from the Department of Health Strategic Partner Programme for health policy work.

This has enabled us to appoint a Health Policy Officer and to engage with a number of Department of Health initiatives, such as the Information Standard and their work on patient and public experience.

• During 2014-15 we organised an event for a range of NHS staff, designed to help them to engage with disabled people, including deafblind people, and hear how their work can take account of people’s needs.

Increasing awareness of Sense and making information available With more than 570,000 visits to our website in 2014-15 (up 22% on the previous year), over 1.4 million individual page views (up 9%), and social media success across Twitter and Facebook (where ‘followers’ and ‘likes’ increased by 46% and 28% respectively), we continue to engage actively via our digital platforms. In our traditional press and media work we increased media coverage nationally and locally, and communicated across a wide range of policy and fundraising-related issues.

Raising funds for our work Although some of our services are contractual, we would only be able to provide very limited services without the funds brought in by our Fundraising Team and trading operation.

Fundraising A new fundraising strategy has been developed and implemented in 2014-15. It is designed to grow our audience and consequently increase income for Sense.

We have successfully secured funding for a wider range of activities including our arts, sports and wellbeing programme, transition work for young people entering adulthood, funding for the TouchBase South East centre in Barnet, the holidays programme and the Sense Stables.

The London Marathon continues to provide a strong platform for our events programme and engagement with volunteers, with 400 runners participating in April 2014. Over 200 people took part in the fifth Ridge Walk Challenge. John Crabtree, Chair of Sense, led an annual trek that took 25 participants to Cuba in order to raise money for TouchBase, the new centre we are developing in Birmingham.

A new Fundraising Board was established during the year. This is chaired by Simon Armstrong, one of our trustees, and involves a number of people with significant expertise who are generously working with us to develop our high value and corporate fundraising.

We have been privileged and honoured to join forces with The Foresters Friendly Society in their charity partnership throughout 2014-15, their 180th anniversary year. The support and enthusiasm from across 18

Sense Group: Report and accounts for the year ended 31 March 2015

the Society has been fantastic, and we are delighted and grateful for the results. The Northern Trust has also been a generous supporter of Sense this year, and their first Cycling Sportif event in aid of the charity was a great success.

People’s generosity in giving through both individual donations and legacies continues to be a hugely important source of income. The Major Donor programme is also a growing source of funds for the charity whilst our European, statutory, lottery, trusts and foundation supporters continue to provide a strong platform of support. This allows the delivery of essential core services as well as supporting pilots for innovative new work.

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

Our commitment to supporters We are exceptionally grateful to each and every one of our supporters, as the services we provide for children, adults and elderly people who have multi-sensory impairments would simply not be possible without your generosity.

We are committed to telling you about the difference your support is making to the lives of our beneficiaries, and that we do so in a way that you are happy and comfortable with. Our commitments to you are: • If you tell us you don’t want to hear from us again, or want to hear from us less or in a different way, we will always listen to you and act on your requests • We will not contact you unless you have expressed an interest in our work (by making a donation, for example) • If you are registered on the Telephone Preference Service we will not call you without your explicit permission • We will closely monitor all the agencies who work on our behalf to ensure that they meet our high standards • We will never sell your data, and will only share it with your express permission • We are members of the Fundraising Standards Board (FRSB) and will follow the codes of practice established by the Institute of Fundraising • We will value your feedback and follow a clear complaints policy as appropriate.

If you would like to talk to us about fundraising, please contact our Supporter Services Team on supporterservices@sense.org.uk or 0300 330 9257.

19

Trading The last year has seen the continuation of improvements in operations and efficiencies against the backdrop of a challenging retail environment. We have continued to review our property portfolio and opened three new shops with a further eight planned for the first half of this year.

• To improve the operation of our shops, this year’s Trading Strategy concentrates on the three core elements of the Sense ‘Orange Shops’: team, stock and operations. The perfect shop is one that has volumes of Gift Aid donated stock and a strong management team supported by a team of engaged and rewarded volunteers.

• We recognise the great work and essential support of our volunteer team. Last year we launched a volunteer pack, which shows how much we value their contribution to Sense and helps to engage them with the charity and our ‘I’ statements.

• We have invested in our shop management teams through a series of learning and development programmes, designed to support and up-skill our managers to support the ‘Orange Strategy‘. The focus is to increase profits by growing a stronger, commercially-aware team.

• We have engaged the local community in Crayford through a series of projects and have established the trading warehouse as a donation station where we regularly receive large volumes of stock. We have grown our community engagement in the local area by promoting the charity and raising awareness of the work, and plan to continue this through several new and ongoing projects, including ‘junior battle shops’. We are also working with the National Citizen Service on this initiative, giving young people information about Sense, experience of community engagement and the opportunity to work in retail • The integration of trading staff with the work of the rest of charity has continued. Staff volunteered on the Sense holidays programme and have raised awareness of the charity through work in their local community, making links with other organisations and projects. We have also worked closely with the Fundraising Team on a number of activities. We are continuing to develop and grow these activities this year.

Sense – working in partnership Throughout this report we note situations in which Sense works in partnership with other organisations and bodies. Sense is involved in a number of key networks in the sector, including: the Special Education Consortium, Early Support Advisory Group, the National Sensory Impairment Partnership, and Communication Consortium. In 2014-15, we also established the MSI Educators Network.

Sense is also a member of the Disability Partnership with Scope, the National Autistic Society, Mencap and the Care and Support Alliance.

20

Sense Group: Report and accounts for the year ended 31 March 2015

Sense objectives for 2015-16 1 We will be planning our strategy for the next three years, reviewing our strategic focus and the main areas

of priority. We envisage that the overall theme of our current strategy will remain broadly the same, with three key strategic headings: –– Increase awareness of what we do –– Drive our income –– Increase opportunities for the people we support.

We will also: 2 Work with the TouchBase Champions (a group of deafblind people and their families), the local community

and staff to co-design our new centre in Selly Oak, Birmingham, and raise the necessary funding for the building.

3 Focus our innovative work to raise the profile of Sense and the people we support, and attract new funding

streams and supporters.

4 Continue to increase the number of people who use and benefit from our diverse services.

5 Prioritise areas of work such as transition, short breaks, assessments and early interventions for children.

6 Deliver the Friendship and Play campaigns designed to mark our 60th anniversary, build a wider understanding

of the barriers facing our beneficiaries, and celebrate their achievements.

7 Create sustainable growth ensuring the long term future of Sense.

8 Continue to embed our quality assurance systems and the work of our service user reference group.

9 Use the 2015 staff survey to measure employee engagement and inform our plans for continued

improvement.

10 Embed our approach to personalisation in order to offer greater independence and choice.

11 Introduce more technology into our services and demonstrate how this improves choice, decision-making

and independence.

12 Harness the wider support of our families and individuals in all our work, and provide them with support

to take part in these opportunities.

21

The governance of Sense The structure of our governance During the financial year of these financial statements, up to the time of their adoption by Council, there have been 14 or 15 trustees who are also (for the purposes of company law) Directors of Sense, The National Deafblind and Rubella Association. Their names are set out later in this report. Trustees can be co-opted to Council, or elected at the annual general meeting (AGM) and can serve up to two terms of four years.

Co-optees are reappointed every year to a maximum of eight years.

The Chairman is elected by trustees and it was agreed by Council in 2011, in accordance with the articles, that our current Chair should serve an additional four-year term. Council meets four times a year and trustees are expected to attend all Council meetings.

Committees Council is supported in its work by a number of sub-committees: Audit and Risk, Finance, Remuneration, and Nominations. Council appoints the members of the sub-committees annually and receives either the minutes from their meetings (for Audit and Finance sub-committees) or reports of their activities. The terms of reference of the Finance and Remuneration sub-committees were updated in 2014; the Audit and Risk and Nominations sub-committees in 2013. They are included in a comprehensive governance handbook, an updated version of which was agreed by Council in early 2015.

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

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

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

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

22

Sense Group: Report and accounts for the year ended 31 March 2015

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

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

Delegated authority Sense Council delegates day-to-day operational management of the organisation to the Chief Executive.

The broad areas of delegation, for which she is accountable, are set out in the governance handbook.

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

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

23

24

Sense Group: Report and accounts for the year ended 31 March 2015

The Sense Group Working together The Sense Group includes a number of separate organisations: • Sense • Sense Scotland • Sense International.

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

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

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

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

Sense Scotland is registered in Scotland as a charity (charity number: SC022097) and a company limited by guarantee (company number: SC147570). It is governed by its own Memorandum and Articles of Association.

Sense International is a registered company limited by guarantee (company number: 03742986) and a registered charity (charity number: 1076497), governed by its own Memorandum and Articles of Association.

It works on a global basis, raising the needs of deafblind people and working with partner organisations in India, Latin America, Eastern Europe and East Africa.

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

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

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

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

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

25

Sense Scotland Progress towards our objectives in 2014-15 We will support people with multi-sensory needs and their families to be active and involved • The Board of Sense Scotland has parent/carer representation and the Chair of Sense Scotland is the parent of a person who uses Sense Scotland services. We have continued to support parents and carers on the Board in their role as Board members through the provision of supporting material and advice.

• We are currently planning a recruitment exercise for new trustees, which will encourage uptake from parents and carers.

• We have active parent/carer representation and involvement in the quality assurance (QA) programme.

• We have developed a family database to support people with multi-sensory needs and their families, as well as to provide meaningful intelligence to inform development priorities.

• We have supported our service user consultation group, Our Voice, to review its role and impact on the organisation. This will ensure they have a greater say in the future of the organisation in the coming years.

• Our Voice was consulted about and approved our key strategic themes.

• The annual conference included a number of key discussions with senior Sense Scotland staff.

• We continue to take part in partnership initiatives, such as Disability Agenda Scotland (DAS), in order to challenge and inform changes in public policy that impact on the people we support and their families.

• We have introduced a national annual service user and families’ satisfaction survey.

We will lead in the provision of high quality services and service development throughout Scotland and internationally • We have audited every service in Sense Scotland through our QA programme.

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

• Our IT strategy has continued to deliver improved equipment into all services, including the rollout of WiFi, mobile and tablet technology. These steps have improved the efficiency and effectiveness of our senior and front line managers.

• Other initiatives are planned regarding client and network improvements.

• We have supported and resourced managers and staff to work in partnership with the people we support and their families, in order to identify achievable, measurable outcomes and describe these in our individual outcome-based support plan.

• Through the continued use of the Progress for Providers model we have prepared for the implementation of personalisation and self-directed support models of service delivery.

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

• We have continued to invest in the personal and professional development of all of our staff through training that includes the Management Business School, a wide range of development opportunities, SVQs and other relevant professional qualifications.

26

Sense Group: Report and accounts for the year ended 31 March 2015

• We have recognised staff achievements and success through our annual staff awards event where nominations highlighted some of the fantastic work of our teams.

• We were successful in gaining certification to the Quality Scotland Recognised for Excellence award.

The organisation recognises that improving quality is an ongoing action, and we will continue to assess and review all of our practices in order to provide the best possible service to the people we support, staff and other stakeholders.

We will grow in order to provide more services to more people • We have taken further steps to develop our TouchBase model in other areas of the country. The successful acquisition of the Aveyron Centre and Volunteer Centre from South Lanarkshire Council will form the new TouchBase Lanarkshire, and we continue our discussions with North Ayrshire Council with regard to a potential location for TouchBase Ayrshire.

• We continue to seek an appropriate location for the development of an outdoor centre.

• We have responded positively to the needs and demands of the people we support and their families by developing a range of high quality group session activities, including arts and music, at TouchBase Glasgow.

• We have further developed our website, marketing and information materials, and increased the use of social media.

The changing environment for social care brought on by a combination of local authority financial constraints and the expansion of Self-Directed Support (SDS) is a challenge to the organisation. We will meet this challenge by providing a range of high quality services that are affordable to our users and funders, and we will communicate this information using a wide range of marketing strategies.

We will be the employer of choice, recognised for our commitment to staff development and training • The restructure of our operational staffing model created a supervisor role with a particular focus on staff management and practice development, which has substantially increased support to staff.

• We continue to use a team briefing approach to ensure that all staff are involved in and can influence the direction of the organisation; we are now looking at modernising that approach.

• We continue to develop our partnership forum with support from Unite to improve the pay and benefits of all staff.

• We have continued to invest heavily in staff training and development with a strong focus on core training.

The organisation has faced a number of challenges that have resulted in an inability to reward staff to the level that we would like. Of particular disappointment is that we have been unable to implement the Living Wage increases that came into effect in November 2013. However, we are committed to the concept of becoming a full Living Wage employer, and we will keep this under review.

27

We will harness the views of those we serve and support them to organise and campaign • We continue to have a strong presence of family members on our Board of Trustees.

• Our advisory services and parent enabling project support families to advocate for services, benefits and funding to ensure the needs of their family member is met.

• We work with other organisations through our membership in Disability Agenda Scotland (DAS). Working closely with thousands of disabled children, young people and adults, families and carers, DAS: –– Influences public policy, including the development of a manifesto for the 2015 General Election –– Provides a forum for decision-makers and influencers to obtain advice and information –– Promotes a better understanding of the diverse experiences, needs and aspirations of disabled people.

• We have a range of marketing materials to provide the people we support and their families with information and advice on self-directed support.

We will work and grow sustainably • We continue to reduce paper usage through: –– Online recruitment –– Electronic forms for many of our processes, including health and safety, procurement, and information –– Online production of monthly management accounts –– Support with scanning of documents • We continue to use SharePoint sites to centralise files and meeting papers to prevent duplication.

• We have increased the use of tablet technology to reduce the use of paper files.

• We have increased the use of smart mobile phone technology to reduce the use of paper-based systems.

• We continue to encourage the donation of second hand goods and furniture to our charity shops to increase up-cycling and income generation.

Plans for the future We have developed three main strategic themes in order to meet the demands of our stakeholders.

These are: 1 Personalisation 2 Quality 3 Sustainability and growth.

1. Personalisation Ambition: • Be the provider of choice. Be recognised for fitting the service around the person.

The challenge: • New legislation will drive a fundamental change in how we deliver services.

28

Sense Group: Report and accounts for the year ended 31 March 2015

Our strategy: • Respond to legislation by delivering the new service model in an effective and efficient way.

• Our people will receive all required training.

• We will support service user families through the transition and beyond by running awareness raising events.

2. Quality Ambition: • To work in partnership with families, carers and the people we support to develop and improve service delivery.

• Become the employer of choice.

The challenge: • The regulatory quality standards have increased and there is more pressure to evidence performance and improvement.

Our strategy: • Implement our QA programme as a vehicle for delivering excellence and meeting all regulatory requirements.

3. Sustainability and growth Ambition: • Grow our services to the benefit of the community by providing personalised, economic and efficient services.

The challenge: • Our funding will come under increasing pressure and competition will increase.

Our strategy: • Maintain or increase funding, market our core competencies and USPs more vigorously, and deploy the TouchBase model beyond Glasgow to develop new service centres.

All of the above strategic themes will be met by a range of projects covering five central areas of: 1 The people we support, their families and trustees 2 Our people 3 Processes (operational, support, governance and facilities) 4 Financial 5 Funding.

We also plan to implement a new project management system that will facilitate the creation of project teams and the identification of milestones, tasks, timescales and measures. The system will also allow the monitoring and reporting of progress to the Board of Trustees and the Leadership Team.

29

Sense International Progress towards our objectives in 2014-15 Sense International works with deafblind adults and children in India, Bangladesh, Kenya, Uganda, Tanzania, Peru and Romania.

We have made progress with the following objectives, which we set last year.

East Africa Successfully pilot Community-Based Education in nine regions across Kenya, Tanzania and Uganda, embedding the new approach into government practices The East African Community-Based Education (CBE) programme (funded by the Big Lottery Fund) was launched in nine regions across Kenya, Tanzania and Uganda. The national CBE curriculum for deafblind learners has been developed in Tanzania, based on our work in Kenya, and a Ugandan version is awaiting finalisation, with instructional materials for teachers and parents also developed and in use.

At the end of the first year of the programme, 387 children (210 female, 177 male) – against a target of 350 – have been identified as deafblind and referred for assessments, with each child supported through an Individual Development Plan and assistive devices based on need. Mainstream teachers, supported by special needs teachers specialising in deafblindness and by Sense International’s own technical staff, are now training most of these children’s parents to educate them at home, in preparation for their eventual enrolment at the local primary school.

Through the advocacy efforts of the programme, 745 government staff, including special needs teachers, mainstream teachers and community development assistants, have been allocated to the CBE programme by governments, against a target of 712. To support the CBE programme we have developed communication and education materials in Uganda, funded by Porticus, and piloted the use of iPads for educating deafblind children in two schools in Tanzania.

Develop pilot early intervention services in at least three hospitals across Kenya and Uganda During 2014-15 we successfully planned and obtained funding from UK Aid Match for a programme to establish an early intervention service in two district hospitals and six primary health care centres in Kenya and Uganda. The pilot programme will commence in April 2016. It will involve screening 300,000 new born babies for sensory impairments in maternity wards and immunisation clinics over three years. It will also provide outreach early intervention therapy services, including physiotherapy and occupational therapy, communication therapy and sensory stimulation, to 360 0 to 3-year-olds. The services will be coordinated by district occupational therapy departments and will use village health team volunteers to support parents with outreach therapy at home. Sense International will provide the technical training and necessary equipment to implement this pilot project. We will monitor and evaluate the services to ensure their effective implementation, and will engage with ministries of health throughout the project lifecycle to ensure that governments continue to provide the services when the project ends.

Develop a pilot Inclusive Education project in partnership with at least one other NGO with experience in Inclusive Education We have done the groundwork for this in Tanzania and Uganda, and are currently preparing an application for the Human Development Innovation Fund (HDIF), a five-year, £30m DfID challenge fund managed by a GRM international-led consortium in Tanzania. We are applying in conjunction with Voluntary Service Overseas (VSO) and possibly a third INGO to create a large inclusive education grant that VSO will lead.

30

Sense Group: Report and accounts for the year ended 31 March 2015

Develop a project to establish a teacher training certificate course at Patandi Teacher Training College in partnership with the Ministry of Education and with Perkins International and Kentalis International We hosted a two-day workshop with Ministry officials and Kentalis and Perkins representation, and an agreed work plan and interagency cooperation was established. However, we were unsuccessful in obtaining a grant for this programme in the UK and are looking to Kentalis to explore whether they can access funds from other sources.

East Africa and India Raise awareness about the need for the rubella vaccine with governments and the general public We have worked closely with Ministries of Health in India, Tanzania, Uganda and Kenya to promote rubella vaccination inclusion in national immunisation programmes. India and Tanzania have adopted rubella as part of their immunisation programmes, and we continue to work with ministries and statistical bureaus in both Uganda and Kenya to make the case for an application to GAVI, the Vaccine Alliance, for rubella inclusion.

In India, we have partnered with Alliance for Immunisation in India (AII) to create awareness of rubella immunisation.

Romania, Peru and East Africa Build long term strategic partnerships with donors and increase income from in-country funding sources In Romania, we have raised two significant grants from the Swiss Development Fund and developed an increasingly productive relationship with Orange. The fundraiser also brought in approximately ÂŁ12,000, with the majority generated through companies. We intend to build on this success in the coming financial year.

In Peru, we did not carry out the intended scoping study as we had difficulty sourcing a company that would be able to provide us with an adequate quality of service. This has been rescheduled for this financial year.

In East Africa, we have advertised for a regional fundraiser and cultivated relationships with a number of private foundations.

Other achievements during the year Bangladesh We continued to work with 16 partners in 15 districts of Bangladesh and supported 907 people with deafblindness and their families through home and centre-based educational support. Health is one of the major concerns for deafblind children in the country, and we provided nutritional support to 39 deafblind children and their families this year. We have also supported over 30 new individuals to set up income generating activities to support household income and wellbeing.

Following recognition of deafblindness as a unique disability in Bangladesh Disability Law last year, the focus has been on ensuring that schools, hospitals, and medical professionals are aware of the law and that deafblind people and their families are supported to access the benefits available to them.

Romania 2014-15 marked the transition phase of our education programme. We continue to have a partnership agreement with the Ministry of Education, and have laid a solid foundation to ensure the inclusion of deafblindness in Romanian education legislation. We have trained over 150 special education teachers in the field of deafblindness, created a team of 11 national trainers, developed the curriculum and physically supported the establishment of classes for deafblind learners. A total of 201 children (128 boys and 73 girls) are currently receiving educational services in 15 schools.

31

We have established early intervention services in Bucharest, Oradea, Timisoara and Lasi, and work with five maternity units and four intervention centres. Following the screening of over 16,000 newborn babies, 2,064 had their vision tested and 64 were included in our early intervention programme. Their parents received counselling and information to help them come to terms with their child’s disability and how they can best support them.

The vocational training programme has gone from strength to strength, with five vocational training units now up and running in Bucharest, Arad and Timisoara, supporting 30 young deafblind learners. The centre has been fully equipped and a total of 32 vocational teachers trained.

Peru Through our virtual course on deafblindness – organised by the Ministry of Education and Sense International Peru – 2,260 teachers from different regions of Peru have been trained. As a result, 255 children with deafblindness and/or other disabilities are receiving improved educational services in nine centres of special education. We have also helped to establish new sensory stimulation rooms for deafblind children and those with multiple disabilities, training teachers in their use.

In November 2014 we launched an advocacy manual in the Peruvian Parliament. This has been developed to raise awareness of the rights of people with deafblindness and the role different stakeholders have in advocating for their rights.

India We continue to support regional and state learning centres in India, providing information, training and other support. Working in 22 states through 55 partner organisations, Sense International India has increased its scope to reach 66,000 people with deafblindness, including 600 people in our direct services. A total of 924 teachers, medical staff, project management staff and SSA (India’s Education for All programme) teachers have been trained.

An additional two screening programmes and early intervention centres have been set up in Goa and Karnataka. A total of 4,300 (2,362 male, 1,938 female) newborn children were screened through our eight partner centres; from these, an additional 150 children have been included in an early intervention programme for sensory stimulation to facilitate their development.

Plans for the future Peru Working in partnership with the Peruvian Ministry of Education, we aim to support a national training programme for professionals in early intervention centres through the delivery of early intervention training.

We will continue to provide teacher training and technical support to special education teachers, with the aim of developing knowledge and skills so that they can support children with deafblindness and multiple disabilities in special education schools.

We will also provide training for community based rehabilitation (CBR) workers, to identify and support children who are deafblind in the less accessible areas of Arequipa, Cusco and, in the future, Ancash. We will also identify deafblind adults to participate in vocational bakery, food and pastry workshops and business planning training so that individuals in Arequipa and Lima can receive seed funding to start micro-enterprises.

East Africa We aim to reach 700 deafblind children with Community-Based Education in Kenya, Tanzania and Uganda.

The early intervention project in Kenya and Uganda will commence in April 2016. This will include training needs assessment and the development of quality assurance processes. We will develop inclusive education projects in partnership with other NGOs in Kenya, Tanzania and Uganda, and gain support from governments for the implementation of agreed models of inclusive education. Additionally, we will develop video training courses on deafblindness for mainstream teachers and parents.

32

Sense Group: Report and accounts for the year ended 31 March 2015

Romania In Romania, we plan to launch a research report and host an international conference to share best practice and raise awareness of the need for screening programmes and early intervention support services. We will develop two new typography vocational training centres for learners with deafblindness in Buzau and Focsani, and organise training for vocational teachers from these special schools, in partnership with the Ministry of National Education. We will also continue to develop our organisational capacity to raise funds in-country, improving accountability and transparency with the support of an active, functional Board of Trustees, and diversifying funding streams.

India In India, we will continue to work with the SSA (Education for All) programme in order to train special educators and government officials about teaching children who are deafblind. We also plan to work on curriculum adaptation for deafblind children who attend mainstream schools. In Jharkhand, we will expand our current home-based programme in Hazaribag and Ranchi to include Ramgarh, and develop a resource centre for children with deafblindness in this area, providing support to parents and training for special educators. We will also launch an advocacy toolkit to support ongoing initiatives run by our partners.

Bangladesh In Bangladesh, we will continue to provide home-based education and needs-based, nutritional, medical and assistive devices for children who are deafblind. We will also continue to train community field workers and parents so that they can best support their children. In addition, we will work with school authorities to ensure the inclusion, where appropriate, of children who are deafblind into mainstream schools.

Broad objectives • We will continue to provide funding for deafblind adults to set up income generating activities, to increase independence and social inclusion. In advocacy, we will develop our strategic direction for policy and advocacy, emphasising the need to increase the ‘voice’ of deafblind people and families.

• We will also continue to support overseas programmes to develop and implement advocacy strategies, whilst working to develop our network in the UK and internationally.

• We will undertake a communication campaign and host a short trip to Kenya for the UK Aid Match appeal with The Sun newspaper.

• We will write and implement a gender action plan for the country programmes, recruit two in-country fundraisers for Romania and East Africa, and carry out a fundraising scoping study in Peru.

• Internally, we will be undertaking a salary review to ensure we are appropriately placed.

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

33

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

Company law requires the trustees to prepare financial statements for each financial year. The statement must give a true and fair view of the state of affairs of the charitable company, the group and of the incoming resources and application of resources, including the income and expenditure of the charitable group for that period. In preparing these financial statements, the trustees are required to: • Select suitable accounting policies and then apply them consistently • Observe the methods and principles in the Charities SORP • Make judgements and estimates that are reasonable and prudent • State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements • Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

In so far as the trustees are aware: • There is no relevant audit information of which the charitable company’s auditor is unaware • The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

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

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

Internal financial control Council has overall responsibility for ensuring that the charity has appropriate systems of controls, financial and otherwise, in place. The systems of internal control are designed to provide reasonable assurance against material misstatement or loss. They include: • A three-year strategic plan and an annual budget approved by Council. A number of matters are specifically reserved for Council’s approval • Regular consideration by Council of financial results, variance from budgets, non-financial performance indicators and benchmarking reviews

34

Sense Group: Report and accounts for the year ended 31 March 2015

• The Finance Committee considers investment strategy and monitors investment performance • Crowe Clark Whitehill LLP has been appointed as our internal auditors. Their annual programme is agreed by the Audit and Risk Committee and the outcomes of the audits are reported to the Committee with action plans • The development of policy documents covering all major strategic and operational activities. These are reviewed by the Executive Team with appropriate regularity and consultation.

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

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

Risk identification and assessment processes have been embedded within the normal operating activities of managers throughout Sense. The review process ensures that key risks are regularly reviewed, monitored and reported on. The following key potential risk areas are some of those to have featured on the Corporate Risk Register during 2014-15: Risk: Building new resource centres: failure to generate sufficient capital prevents us from building TouchBase or delays the building work.

Controls: Project management, financial planning and tight controls are in place.

Risk: Significant financial exposure arising from external challenges to Sense Trading results in a shortfall of charitable income for the organisation.

Controls: Department restructured to allow individual managers to focus exclusively on areas of risk.

Risk: Pensions liability becomes unsustainable and the deficit significantly increases, compromising the ability to fund payments.

Controls: Agreement reached with LPFA that withdrawing all active members from the scheme would not trigger cessation value (now completed). Instalments agreed for future years with the option of paying the cessation value at a time suitable to Sense.

Risk: An increase in the number of voids leading to reduced income levels and closure of unviable services.

Controls: Referral systems in place for all services and addressed in business plans. Processes are in place to manage voids. A corporate approach to personalisation is in place.

35

Sense Group trustees and senior staff Our Patron: HRH The Princess Royal Sense Council members from 1 April 2014 to the present with Committee Membership

Sense Scotland and Sense International have their own Boards of Trustees:

John Crabtree OBE (Chairman)

Sense Scotland

Gillian Wood (Vice Chair and Chair of the Nominations Committee from December 2014) Stood down in 2013, elected December 2014 (R from December 2014; F as an external member December 2013 to December 2014)

Roy Cox (Chairman)

Virginia Bartlett MBE Elizabeth Booth (Chair of the Remuneration Committee) Re-elected December 2014 (A&R and Chair of N until December 2014) Ian Harley (Chair of the Audit and Risk Committee) Nicholas Keegan (Treasurer and Chair of the Finance Committee) (A&R; R (ex officio)) James McManus (co-opted from Sense Northern Ireland) David Pearson Retired December 2014 David Reeves (Chair of Governors, Sense College) Re-elected December 2014 (R; F) Roy Staines Duncan Tannahill (co-opted from Sense Scotland) Susan Turner (A&R) Desmond Lucy (co-opted December 2013, elected December 2014) (N from December 2014)

Neil Farquharson (Vice Chairman) Gerard Seenan (Treasurer) Douglas Smart (Depute Treasurer) David Newton Duncan Tannahill Isobel Allan Norman Richie (died 25 October 2014) Usman Rehman Gary Simpson Eileen Henighen (resigned 18 March 2015) Angela Clements (appointed 10 September 2014) Sense International Sunil Sheth (Chairman) Pankaj Shah (Treasurer) Denis Tinsley Sue Turner

Dr Justin Molloy (A&R from December 2014)

Dr Subo Shanmuganathan

Natalie Assad (A&R from December 2014)

Leona Forsyth

Simon Armstrong (co-opted July 2014, elected in December 2014) (F; and as an external member until July 2014)

Verity Stiff Paul Feeney Dean Lumer

A&R – Audit & Risk sub-committee F – Finance sub-committee N – Nominations sub-committee R – Remuneration sub-committee

36

Sense Group: Report and accounts for the year ended 31 March 2015

Senior staff at Sense

Senior staff at Sense Scotland

Gillian Morbey OBE Chief Executive (also Chief Executive of Sense International)

Andy Kerr Chief Executive of Sense Scotland

Richard Kramer Deputy Chief Executive

Linda Annan Director of Operations (left 22 May 2014)

Peter Cheer Group Director Operations (resigned July 2015)

Brian Murphy Director of Operations (commenced 1 December 2014)

Kris Murali Group Director Finance and Resources

John O’Connor Director of Finance and Resources and Company Secretary

Toni Dumolo Director of Human Resources David Robinson Director of Finance

Eddie McConnell Director of Development

Alana Tubasei Director of Fundraising Adrian Darkin Director of Trading James Thornberry Director of Sense International (resigned August 2015) Maria Horton Director of Operations (from August 2015) Carolyn Merry Director of Sense International (from September 2015)

37

Financial review 2014/15 Sense, like many organisations in our sector, is facing challenging times, with demand for the support and services we offer increasing, but the resources we can access diminishing. However, in line with the drive for innovation demonstrated by our founders 60 years ago, Sense’s innovative and collaborative approach across our diverse range of activities has enabled us to continue to grow our income, which is up from £82m in 2013/14 to £83m in 2014/15. More importantly, our approach has allowed us to reach more people than ever.

Pensions Sense has a historic membership of the London Pension Fund Authority (LPFA), a public sector provider of pensions and a traditional pension body for local authorities. Sense closed membership of the scheme to new members in 2003. We have been working hard to reduce the risk this historic pension scheme brings to Sense and in 2014 asked all members to voluntarily leave the scheme and join the standard defined contribution scheme we offer to all new starters. These new contracts took effect from November 2014 and leaves Sense with no active members in the LPFA scheme.

This means that no new final salary liabilities are being incurred by Sense for active members (other than those arising from changes in actuarial assumptions). It also allows us to continue our discussions with the LPFA about agreeing a cessation value and leaving the scheme completely, or continuing to reduce the historic deficit through the savings we will make by no longer having active members. Whilst Sense has no current members of the scheme, we do have a considerable number of pensioners and past/present employees with a deferred status (i.e. no longer being an active member of the scheme, but not yet a pensioner), so we must account for our liabilities as appropriate. It is the surplus or deficit of this scheme that we show in our financial statements and explain in detail in note 9.

The 2014/15 FRS17 pension fund valuation showed very significant movement, and this continues to be a volatile element in our financial statements, causing large scale movements year on year. This year the actuarial valuation moved by a negative £9m. In 2013/14 the movement was a negative £5m, whereas in the previous four years we had total positive movements in excess of £15m. This movement causes the consolidated statement of financial activities to show a significant difference between incoming and outgoing resources.

Trading We undertook a significant reorganisation of our shops and Trading Team in 2013/14, and this has helped us significantly reduce costs from £11m in 2013/14 to £10.6m in 2014/15. However, our shops remain under particular pressure that is in common with the high street in general. We have continued to see a reduction in shoppers and have faced a reduction in donated goods, with local authority regulations, internet sales and the financial squeeze all having an impact. This has led to a fall in our shops’ income from £11.9m in 2013/14 to £10.9m in 2014/15.

Fundraising Fundraising remains a challenge, but the direct marketing campaigns we instigated in 2013/14, in both Sense and Sense Scotland, have helped maintain the growth in fundraising income, which has risen from £9m in 2013/14 to £9.4m in 2014/15. This investment drove up our fundraising costs considerably from £4.2m in 2012/13 to £5.9m in 2013/14, but in 2014/15 our costs have fallen back to £4.6m. In the longer term our returns will be considerably in advance of our direct marketing investment and, in addition to this financial benefit, we have also engaged with hundreds of new supporters.

We have continued to be successful in using European and other grant income to advance our work through Sense International, and we continue to see the number of people we reach each year. We have also been 38

Sense Group: Report and accounts for the year ended 31 March 2015

successful in a number of other grant bids for Sense and Sense Scotland, and this enables us to explore, develop and operate several new projects. In all, statutory grants received were similar year on year (£1.1m in 2013/14 and £1.0m in 2014/15), whilst fundraising grants increased from £0.8m to £1.4m year on year.

Our work in the field of arts and wellbeing is growing at a pace and we are working in new and exciting areas that bring real benefits to the lives of many of our beneficiaries.

In general, despite these challenges, 2014/15 was a success for the Sense Group; we are reaching more people than ever and have increased engagement with our stakeholders in a number of ways.

Expenditure Consolidated expenditure on our charitable activities in 2014/15 was £66m (£66m in 2013/14), whilst we spent £2.4m (£2.5m in 2014) working with children and families and £1.4m (£1.3m in 2014) working with older people. Work on campaigning and raising awareness cost £1.4m (£1.4m in 2014), publicity costs were £668,000 (£661,000 in 2014) and we spent £457,000 (£481,000 in 2014) on quality improvements and staff development.

Governance costs amounted to £58,000 (£56,000 in 2014).

Income Consolidated total income amounted to £83m – an increase of £1.1m on the previous year.

In 2014/15, the Sense Group received fees and allowances, paid by statutory authorities, which rose by 2.4%, totalling £57.4m. This increase has been achieved at a time when significant pressure is being placed on our fee income as funding cuts continue. However, Sense has regularly demonstrated that our services offer value for money and that, in the long term, we help reduce the cost to funders by enabling people to reach their potential and become as independent as possible.

We have added new services and reached more people than ever before, and this has increased our total income. We have worked in partnership with our funders to reduce costs and have agreed some fee reductions where appropriate, whilst maintaining the highest quality standards. This income is linked to agreed contracts, and Sense provides services in line with our agreements with health authorities, care commissioning groups, local authorities and individuals.

Total income from fundraising activities reached £13m, representing an increase of £850,000 on the previous year and bucking the general downturn. Income from our shops decreased to £10.9m due to the general malaise of the high street and reductions in donated goods The Statement of Financial Activities, before we included the FRS17 deficit, resulted in a positive net movement in funds for the year of £1.7m (negative £0.6m in 2014) showing that 2014/15 was a financially successful year for Sense. However, the historic LPFA pension scheme FRS17 valuation gave a negative movement of £9m, resulting in an overall negative net movement in funds of £7.3m.

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

Reserves The policy for reserves is reviewed each year by trustees.

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

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

39

In addition, trustees take account of any risks that might impact on the level of reserves required. They include: • Time needed to implement an operational response to any significant reductions in income • Dependence on and reliability of individual income streams • Robustness of the internal reporting and response methods • Potential for variation in cash flow forecasts.

Sense Scotland set a target of 12 weeks’ operating costs as a desired level of reserves, which is reviewed annually, having taken into account the nature of the client group for which the charity is entrusted to provide care and support. As of 31 March 2015, the charitable company has managed to achieve a reserve level of 11.6 weeks working capital. Working capital is calculated using the net current assets (excluding restricted and designated funds) divided by the average expenditure for one week.

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

Sense sets a target of £17m to cover the factors previously mentioned and to allow us sufficient funds to embark on a significant capital investment programme. This capital investment programme will include new resource centres in Birmingham and Wales. In addition, we have plans to improve many of our services and to assist people to remain in their homes by making adaptations as necessary. As the cost of these developments have been identified, we have designated funds to cover them, and so Sense seeks to meet its £17m reserve target through a combination of unrestricted current assets and designated funds linked to these schemes.

Investment strategy Investment aims In 2015, Sense disinvested the investment portfolio held by Sarasin & Partners and the resulting assets are held within the cash balance and investments balance. This is in preparation for future capital commitments.

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

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

Ethical investments Sense would wish to avoid unethical investments that are in conflict with its charitable objectives.

Employees Employees are kept fully informed of all factors affecting the performance of the organisation and any other matters likely to be of concern to them through written and face-to-face staff briefings, our intranet and newsletters. This includes notes on decisions and discussions of both the Executive Team and Council.

Employees are encouraged to present their suggestions and views at regular one-to-one meetings with their line managers and through implementation of a grievance procedure and whistleblowing policy (see page 41). Sense also has a Staff Forum, where representatives elected by staff hear and comment on issues, and bring ideas and suggestions to senior management.

The development of our workforce through training and increased engagement will play an important part in our strategy for 2016.

40

Sense Group: Report and accounts for the year ended 31 March 2015

Whistleblowing Working with the independent whistleblowing charity Public Concern at Work (PCAW), Sense annually reviews its whistleblowing policy and arrangements through the internal Quality Board.

Sense became a PCAW First 100 Campaign signatory in March this year, signing up to the Whistleblowing Commission’s Code of Practice. In March 2014, the whistleblowing policy and arrangements were promoted across Sense through a Speak Up poster campaign. This involved promoting the PCAW independent helpline among employees and volunteers, and providing online tools to raise awareness and assist managers to deal with concerns. The policy was also reviewed to widen the number of people internally who potential whistleblowers can confidentially approach to raise a concern.

A total of six cases were raised during the reporting period, relating to health and safety, working practices and dignity at work. Usage rate for the anonymous PCAW helpline is unknown; however, three callers stated a connection with Sense. The Quality Board will continue to review and monitor whistleblowing arrangements and their effectiveness.

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

By order of Council and signed on its behalf:

G Morbey OBE, Secretary

41

Independent auditors’ report to the members of Sense, The National Deafblind and Rubella Association Report on the financial statements Our opinion In our opinion, the financial statements defined below: • Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2015 and of the group’s incoming resources and application of resources, including its income and expenditure and the group’s cash flows for the year then ended • Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice • Have been prepared in accordance with the requirements of the Companies Act 2006.

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

What we have audited • The group financial statements and parent charitable company financial statements (the ‘financial statements’), which are prepared by Sense, The National Deafblind and Rubella Association, comprise: • The group and parent charitable company balance sheet as at 31 March 2015 • The group statement of financial activities and the group summary income and expenditure account for the year then ended • The group cash flow statement for the year then ended • The accounting policies; and • The notes to the financial statements, which include other explanatory information.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

What an audit of financial statements involves We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (‘ISAs (UK & Ireland)’). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: • Whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed • The reasonableness of significant accounting estimates made by the trustees • The overall presentation of the financial statements.

42

Sense Group: Report and accounts for the year ended 31 March 2015

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

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

Other matters on which we are required to report by exception Adequacy of accounting records and information and explanations received Under the Companies Act 2006 we are required to report to you if, in our opinion: • We have not received all the information and explanations we require for our audit • Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or • The parent charitable company financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

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

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

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

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

This report, including the opinions, has been prepared for and only for the charity’s members and trustees as a body in accordance with Chapter 3 of Part 6 of the Companies Act 2006 and for no other purpose.

We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Anthony Blackwell (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LIP Chartered Accountants and Statutory Auditors Leeds 22 September 2015 (a) The maintenance and integrity of the Sense, The National Deafblind and Rubella Association website is the responsibility of the trustees; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. (b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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

43

Consolidated statement of financial activities for the year ended 31 March 2015 Designated Funds £

Restricted Funds £

Fundraising income

7,122,570

627,380

1,696,103

-

9,446,053

9,037,211

Legacies receivable

2,107,229

-

10,356

-

2,117,585

2,314,193

Notes

General Funds £

Endowment Funds £

Total 2015 £

Total 2014 £

Incoming resources Incoming resources from generated funds

Fundraising grants receivable

1

Shops income

-

-

1,436,632

-

1,436,632

796,727

10,891,972

-

-

-

10,891,972

11,865,761

Investment income

2

196,323

-

1,997

-

198,320

313,801

Other income

3

303,618

1,070

78,477

-

383,165

269,368

Incoming resources from charitable activities Fees and allowances Statutory grants receivable Net gain on disposal of fixed assets

1 5

Total incoming resources

56,909,994

-

514,329

-

57,424,323

56,085,501

24,533

-

1,022,963

-

1,047,496

1,125,180

19,335

-

-

-

19,335

-

77,575,574

628,450

4,760,857

-

82,964,881

81,807,742

3,851,425

624,768

120,940

-

4,597,133

5,894,709

Resources expended Cost of generating funds: Fundraising costs Shops costs

10,569,394

-

-

-

10,569,394

10,955,191

Total cost of generating funds

14,420,819

624,768

120,940

-

15,166,527

16,849,900

37,366,334

771,609

846,535

8,623

38,993,101

38,785,263

1,804,579

63,362

532,774

-

2,400,715

2,520,015

Charitable activities Work with adults Work with children Work with older people Work in Scotland International work

1,249,996

30,105

81,243

-

1,361,344

1,343,219

17,212,599

468,530

1,340,372

-

19,021,501

19,066,470

426,954

19,711

1,177,794

-

1,624,459

1,482,173

1,231,936

10,673

155,090

-

1,397,699

1,372,680

Publicity

660,574

5,240

2,138

-

667,952

661,113

Quality and staff development

452,005

3,113

1,503

-

456,621

480,967

Campaigns and awareness

Governance costs

4

Total resources expended Net incoming/(outgoing) resources before transfers Transfers

18

Net (outgoing)/incoming resources before other recognised gains and losses

57,559

-

-

-

57,559

56,004

60,462,536

1,372,343

4,137,449

8,623

65,980,951

65,767,904

74,883,355

1,997,111

4,258,389

8,623

81,147,478

82,617,804

2,692,219

(1,368,661)

502,468

(8,623)

1,817,403

(810,062)

267,838

(173,814)

(94,024)

-

-

-

2,960,057

(1,542,475)

408,444

(8,623)

1,817,403

(810,062)

Other recognised gains/(losses) Other recognised gains/(losses)

5

(73,146)

-

-

-

(73,146)

233,187

Actuarial (losses)/gains on defined benefit pension schemes

9

(9,018,000)

-

-

-

(9,018,000)

(5,014,000)

Net movement in funds

6

(6,131,089)

(1,542,475)

408,444

(8,623)

(7,273,743)

(5,590,875)

14,430,339

18,478,653

7,086,972

430,147

40,426,111

46,016,986

8,299,250

16,936,178

7,495,416

421,524

33,152,368

40,426,111

Fund balances brought forward at 1 April 14 Fund balances carried forward at 31 March 15

44

18,19

The notes on pages 51 – 69 form part of these financial statements. The group has no other recognised gains and losses other than those included in the results above, and, therefore, no separate statement of total recognised gains and losses has been presented. All incoming resources and resources expended are derived from continuing activities.

Registered no. 1825301

Sense Group: Report and accounts for the year ended 31 March 2015

Consolidated balance sheet as at 31 March 2015 Notes

31 March 2015 £

31 March 2014 £

Fixed assets Tangible assets

11

24,814,060

23,075,273

Investments

12

49

5,007,572

24,814,109

28,082,845

Total fixed assets

Current assets 108,236

94,717

Debtors

13

7,805,377

8,019,220

Investments

14

4,000,000

4,000,000

Stock and work in progress

Cash at bank and in hand

14,852,676

10,481,751

Total current assets

26,766,289

22,595,688

(4,906,796)

(5,229,132)

21,859,493

17,366,556

46,673,602

45,449,401

(590,234)

(652,290)

46,083,368

44,797,111

(12,931,000)

(4,371,000)

33,152,368

40,426,111

Creditors (amounts falling due within one year)

15

Net current assets Total assets less current liabilities Creditors (amounts falling due after more than one year)

16

Net assets excluding pension liability Defined benefit pension scheme liability

9

Net assets including pension liability

The funds of the charity Restricted income funds

18,19

7,495,415

7,086,972

Endowment fund

18,19

421,524

430,147

General fund (including pension reserve of £12,931,000 adverse (2014: £4,371,000 adverse)

18,19

8,299,251

14,430,339

Designated funds

18,19

16,936,178

18,478,653

Total unrestricted income funds

25,235,429

32,908,992

Total charity funds and reserves

33,152,368

40,426,111

Unrestricted income funds

The notes on pages 51 – 69 form part of these financial statements.

Nick Keegan, Treasurer Approved by Council 22 September 2015 Registered no. 1825301

45

Company balance sheet as at 31 March 2015 Notes

31 March 2015 £

31 March 2014 £

Fixed assets Tangible assets

11

18,338,199

16,539,912

Investments

12

30,049

5,035,890

18,368,248

21,575,802

Total fixed assets Current assets Stocks of goods and work in progress Debtors

13

Investments

14

Cash at bank and in hand Total current assets Creditors (amounts falling due within one year)

15

Net current assets Total assets less current liabilities Creditors (amounts falling due after more than one year)

94,717 5,309,866

4,000,000

4,000,000

7,767,856

4,233,841

17,681,538

13,638,424

(4,033,556)

(4,269,894)

13,647,982

9,368,530

32,016,230

30,944,332

16

(9,000)

(18,000)

32,007,230

30,926,332

9

(12,931,000)

(4,371,000)

19,076,230

26,555,332

Net assets excluding pension liability Defined benefit pension scheme liability

108,236 5,805,446

Net assets including pension liability

The funds of the charity Restricted income funds

18,19

4,427,931

4,040,514

Endowment fund

18,19

421,524

430,147

General fund (including pension reserve of £12,931,000 adverse (2014: £4,371,000 adverse)

18,19

3,917,165

10,437,895

Designated funds

18,19

Unrestricted income funds

Total charity funds

The notes on pages 51 – 69 form part of these financial statements.

Nick Keegan, Treasurer Approved by Council 22 September 2015 Registered no. 1825301

46

10,309,610

11,646,776

19,076,230

26,555,332

Sense Group: Report and accounts for the year ended 31 March 2015

Consolidated summary income and expenditure account for the year ended 31 March 2015 2015 £

2014 £

82,766,561

81,493,941

(81,391,675)

(82,776,355)

1,374,886

(1,282,414)

Income from fixed asset investments

77,756

177,067

Gain on disposal of tangible fixed assets

19,335

-

Interest receivable and similar income

120,564

136,734

Interest payable and similar charges

(14,138)

(42,449)

Other finance income

239,000

201,000

1,817,403

(810,062)

Income of continuing operations Total expenditure of continuing operations Operating surplus/(deficit)

Net (expense)/income for the year

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

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

The consolidated summary income and expenditure account is derived from the statement of financial activities, which, together with the notes to the financial statements on pages 51 – 69 provides full information on the movements during the year on all the association’s funds.

The notes on pages 51 – 69 form part of these financial statements.

Registered no. 1825301

Consolidated cash flow statement for the year ended 31 March 2015 Notes Net cash inflow from operating activities

23

2015 £

2014 £

2,981,817

1,481

Returns on investment and servicing of finance Investment income received

198,320

313,801

Interest paid

(14,138)

(42,449)

184,182

271,352

4,922,132

55

(3,684,638)

(3,529,727)

27,226

35,317

1,264,720

(3,494,355)

(59,793)

(56,845)

Capital expenditure Sale/(purchase) of investments Purchase of tangible fixed assets Sale of tangible fixed assets

Financing Bank and other loans repaid Transfer from current asset investments

Increase in cash

24, 25

-

4,000,000

(59,793)

(3,942,155)

4,370,926

721,633

The notes on pages 51 – 69 form part of these financial statements.

Registered no. 1825301

47

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

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

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

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

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

Resources expended All expenditure, including any irrecoverable VAT, is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. The cost of generating funds for voluntary income is the cost of organising fundraising events and activities, and the cost of operating the charity’s shops. The costs of charitable activities include all expenditure directly relating to the objects of the charity.

Support costs have been apportioned to the relevant charitable activity on the basis of salary costs incurred.

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

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

48

Sense Group: Report and accounts for the year ended 31 March 2015

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

2%

Short leasehold properties and long leasehold improvements

over the remaining life of the lease

Furniture, fixtures and fittings

12.5%-25%

Motor vehicles

25%

Freehold land is not depreciated.

Individual fixed assets costing ÂŁ500 or more are capitalised at cost.

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

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

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

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

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

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

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

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

49

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

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

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

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

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

Endowment funds represent those assets that must be held permanently by the charity, principally properties.

Any capital gains or losses arising form part of the fund. Depreciation of the properties is charged against the fund.

Investment income and gains are allocated to the appropriate fund.

50

Sense Group: Report and accounts for the year ended 31 March 2015

Notes to the financial statements for the year ended 31 March 2015 1. Grants receivable 2015 £

2014 £

146,712

130,117

Sense – statutory grants receivable DfE grant

8,000

8,000

Powys Supporting People

-

12,989

Innovation fund

-

2,326

Suffolk Supporting People grants

-

(2,700)

Carmarthenshire

-

4,608

LAAW Aiming High Cambridgeshire CC

10,500

14,500

Business Innovation

36,000

-

Education Funding Agency

Norfolk County Council SA Funds

30,356

49,951

Northern Ireland Housing Executive

23,524

23,524

Western Health and Social Care Trust

18,261

20,420

Newtown Abbey Surestart

54,138

65,443

Needs and Numbers

30,077

-

Skills for Care

15,315

33,910

Social Prescribing Service

20,186

-

Cornwall County Council – GOT project

60,000

60,000

South Gloucestershire Children’s Services grant

10,872

2,929

NVQ funding

-

1,800

PCP training

-

2,074

11,988

7,033

115,920

111,661

SIFA Educational Trust

Sense Scotland – statutory grants receivable Scottish Government (Malawi project) Scottish local authorities and health boards (towards services) Tayside NHS NHS Greater Glasgow (Innovation projects)

24,533

71,301

5,350

10,700

-

160,922

3,500

4,149

Scottish Government (VSDF Award)

17,000

29,565

Scottish Government (Section 10B)

20,000

10,000

Glasgow City Council

Scottish Government (Path for All)

10,000

5,000

Scottish Government (Partners in Communication)

92,800

92,800

-

34,421

Scottish Government (Shared fund for better breaks) Scottish Government (Bangladesh)

90,719

26,047

Scottish Government (Strategic Partnerships)

65,615

67,000

Scottish Government (Third Sector Intervention)

90,251

56,244

Scottish Government (Autism Strategy)

12,096

-

Fife Council

19,560

-

4,223

8,446

1,047,496

1,125,180

Other Total statutory grants receivable

51

2015 £

2014 £

Sense – charitable grants receivable Northern Ireland DHSS (towards services in Northern Ireland – core grant) Welsh National Assembly (towards organisational development – core grant) Short Breaks Arts Council England Sport England Grundtvig Innovation, Excellence and Strategic Development Fund

30,877

27,124

107,250

107,250

-

13,003

26,590

-

125,324

-

4,179

3,785

80,989

50,657

33,750

42,500

102,546

37,426

City Bridge Trust

18,425

10,585

Other

(1,500)

-

62,397

54,567

-

11,495

Mencap Big Lottery Fund Cymru

Sense Scotland – charitable grants receivable Big Lottery Fund (One Giant Leap) Big Lottery Fund (Arts)

-

9,100

5,000

-

-

18,750

24,366

5,795

-

12,961

3,627

21,554

State of Jersey Overseas Aid Commission (improving self-sufficiency, basic health and education opportunities in Peru)

41,025

-

State of Jersey Overseas Aid Commission (improving education access and quality for deafblind children in Tanzania)

50,249

-

State of Jersey Overseas Aid Commission (improving education access and quality from deafblind children in Uganda)

62,118

-

European Commission EuropeAid Co-operation Office (promoting and protecting the rights of deafblind people in India)

30,451

37,655

Guernsey Overseas Aid Commission (improving quality of education for children who are deafblind and have multiple disabilities in Peru)

19,153

-

Big Lottery Fund (improving opportunities for deafblind people in Peru)

168,397

14,563

Department for International Development (UK Aid) (Global Poverty Action Fund – expanding services for deafblind people in India)

168,085

168,775

Scottish Government (improving education and health for deafblind people in Bangladesh)

86,783

22,207

State of Jersey Overseas Aid Commission (vocational skills for independence for deafblind people in Bangladesh)

36,097

53,030

State of Jersey Overseas Aid Commission (improving basic health and effective education for deafblind people in Bangladesh)

-

52,986

Big Lottery Fund (Award for All) Creative Scotland (Artist in Residence) Creative Scotland (Year of Natural Scotland) Creative Scotland (Music Initiative)

Sense International – charitable grants receivable Department for International Development (UK Aid) (Developing a sustainable infrastructure for the inclusion of deafblind people in Bangladesh) European Commission EuropeAid Co-Operation Office (Promoting access to education for deafblind and multi-sensory impaired children in Tanzania)

Big Lottery Fund (improving education for deafblind people in East Africa) Others Total charitable grants receivable

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

52

147,575

8,833

2,879

12,126

1,436,632

796,727

Sense Group: Report and accounts for the year ended 31 March 2015

2. Investment income

Bank interest Dividends

2015 £

2014 £

120,564

136,734

77,756

177,067

198,320

313,801

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

4. Total resources expended Direct costs

Support costs £

2015 £

2014 £

4,391,247

205,886

4,597,133

5,894,709

Trading

10,471,804

97,590

10,569,394

10,955,191

Work with adults

Fundraising

34,718,622

4,274,479

38,993,101

38,785,263

Work with children

2,139,853

260,862

2,400,715

2,520,015

Work with older people

1,213,350

147,994

1,361,344

1,343,219

Campaigning and awareness raising

1,256,383

141,316

1,397,699

1,372,680

598,558

69,394

667,952

661,113

Publicity Quality and staff development Work in Scotland International work Governance

415,731

40,890

456,621

480,967

17,466,675

1,554,826

19,021,501

19,066,470

1,512,342

112,117

1,624,459

1,482,173

57,559

-

57,559

56,004

74,242,124

6,905,354

81,147,478

82,617,804

Analysis of support costs apportioned Facilities £ Fundraising Trading Work with adults Work with children

Management £

Human resources £

Finance and IT £

Communications £

2015 £

2014 £

15,394

24,224

61,848

68,125

36,295

205,886

195,949

-

36,533

47,365

13,692

-

97,590

136,850

347,790

331,306

1,317,287

1,458,125

819,971

4,274,479

4,418,378

21,225

20,219

80,391

88,986

50,041

260,862

284,769

Work with older people

12,041

11,471

45,608

50,484

28,390

147,994

151,330

Campaigning and awareness raising

11,498

10,953

43,550

48,206

27,109

141,316

144,097

Publicity

5,646

5,379

21,385

23,672

13,312

69,394

70,328

Quality and staff development

3,327

3,169

12,601

13,949

7,844

40,890

44,314

-

890,982

329,915

333,929

-

1,554,826

1,413,688

Work in Scotland International work

-

112,117

-

-

-

112,117

144,594

416,921

1,446,353

1,959,950

2,099,168

982,962

6,905,354

7,004,297

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

53

Analysis of governance costs 2015 £ Internal audit External audit fees Strategic management costs Trustees’ expenses

2014 £

7,291

7,148

43,354

42,200

235

(292)

6,679

6,948

57,559

56,004

5. Gains/(losses) on tangible fixed assets and investments 2015 £

2014 £

19,335

-

-

(219)

Incoming resources from charitable activities Net gain on sale of tangible fixed assets

Gains and losses on revaluation and disposal of fixed assets Net loss on sale of tangible fixed assets

-

233,403

(73,146)

3

(73,146)

233,187

2015 £

2014 £

43,354

42,200

Depreciation – owned assets

1,937,960

1,868,320

Operating lease rentals

3,113,428

3,222,510

14,138

42,449

(239,000)

(201,000)

Unrealised gain on revaluation of listed investments Realised gain/(loss) on sale of listed investments

6. Net movement in funds The net movement in funds is stated after charging/(crediting):

Auditors’ remuneration – audit services

Interest payable on bank loans Other finance income – pension scheme

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

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

54

Sense Group: Report and accounts for the year ended 31 March 2015

Our approach to pay Sense is committed to providing the highest quality services across all of the diverse areas that we cover.

This commitment is as true in our Ofsted registered college as it is in our varied accommodation services, arts and wellbeing projects and policy, information and training provision. To achieve our goals we need to recruit high-calibre people who can manage complex finance, budgets and business planning as well as understanding the voluntary sector and the areas of disability that we cover.

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

People are employed by Sense on the basis of the specific skills that they bring to their particular role.

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

Senior management pay Sense’s unique range of services, covering the breadth of the UK as well as East Africa, parts of Asia, South America and Europe, encompass activities ranging from education and campaigning to hands-on care provision and cutting edge research. This means that the Chief Executive and other members of the Executive Team require broad and in-depth knowledge and expertise, which necessitates recruitment from the best senior manager talent in the sector. All senior managers have large numbers of staff working with them, and have responsibility for varied functions and large budgets over wide geographical areas. They are also responsible for the vulnerable people who we support. They need to be able to command the respect of colleagues, members and commissioners, and take personal responsibility for the success of their area and for the future of the charity. We are also very aware of the need to keep salary costs under control.

Benchmarking The Sense HR Team use externally accredited methods to benchmark salaries both internally and externally.

While we take these into account, we struggle to meet the same terms and conditions as other sectors. This is true with respect to holidays and salaries for our teaching staff, particularly when compared to the public sector, and our most senior staff when compared to the private sector.

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

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

Year

Sense pay increase

Scotland pay increase

2009/10

0%

0%

2010/11

2%

0%

2011/12

0%

3%

2012/13

0%

0%

2013/14

0%

0%

2014/15

1%

0%

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

55

2015 £

2014 £

Wages and salaries

49,595,116

50,535,836

Social security costs

3,623,142

3,668,897

Other pension costs

1,521,868

1,992,780

Agency labour

2,364,926

1,346,967

57,105,052

57,544,480

The average number of persons employed by the charity was 3,258 (2014: 3,287).

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

2015

2014

£60,000 – £70,000

4

1

£70,000 – £80,000

1

3

£80,000 – £90,000

2

2

£90,000 – £100,000

1

1

£100,000 – £110,000

2

1

£130,000 – £140,000

1

-

£140,000 – £150,000

-

1

2015 £

2015 staff

2014 £

2014 staff

Defined benefit schemes

31,576

2

28,133

2

Money purchase schemes

39,363

9

31,027

6

Pension contributions for higher paid employees were as follows

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

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

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

We will not tolerate discrimination on grounds of gender, gender identity, marital status, civil partnerships, sexual orientation, race, colour, nationality, religion, age, disability, HIV positivity, working pattern, caring responsibilities, trade union activity or political beliefs. Neither will we tolerate direct or indirect behaviours that are intended to bully, harass, isolate or victimise for reasons connected to individual differences. No-one will receive less favourable treatment and everyone will be given the opportunity to grow and flourish.

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

8. Remuneration of members of Council As required by the Charities Act 2011, trustees across the Sense Group received no remuneration but did receive £6,679 (2014: £6,948) in respect of reimbursement of expenses incurred.

56

Sense Group: Report and accounts for the year ended 31 March 2015

9. Pensions The charity participates in the London Pension Funds Authority (LPFA) Superannuation Scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the participating employers, being mainly invested in equity investments and Government Securities. The most recent triennial valuation was as at 31 March 2014. For the year to 31 March 2015 employer contributions to the pension scheme were at the rate of 34.1% of pensionable salaries.

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

At 31 March 2015 % pa

At 31 March 2014 % pa

Rate of inflation – RPI

3.2

3.6

Rate of inflation – CPI

2.4

2.8

Rate of increase in salaries

n/a

2.0

Rate of increase for pensions in payment

2.4

2.8

Discount rate

3.5

5.0

2015 Years

2014 Years

Men

21.6

21.5

Women

24.3

24.2

Men

23.6

23.5

Women

26.3

26.2

The assumed life expectations from age 65 were as follows:

Retiring today:

Retiring in 20 years:

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

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

Equities

Long term return expected at 31 March 2015 %

Value at 31 March 2015 £’000

Long term return expected at 31 March 2014 %

Value at 31 March 2014 £’000

-

14,968

6.0

17,467

LDI/Cashflow matching

-

2,590

3.6

1,977

Target return funds

-

9,974

6.3

9,887

Infrastructure

-

1,709

6.5

1,318

Commodities

-

321

6.3

330

Property

-

978

5.7

989

Other bonds

-

-

-

-

Cash

-

3,961

3.4

989

6.4

34,501

6.4

32,957

For accounting years beginning on or after 1 January 2015, the expected return and the interest cost are to be replaced with a single net interest cost, which will effectively set the expected return equal to the discount rate. For the year to 31 March 2015, the expected return was 6.4% pa, which has been used to determine the profit and loss charge for the year ended 31 March 2015.

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

57

The following amounts at 31 March 2015 were measured in accordance with the requirements of FRS17: 2015 £’000

2014 £’000

34,501

32,957

Present value of scheme liabilities

(47,432)

(37,328)

Net pension liability

(12,931)

(4,371)

Reconciliation of present value of scheme liabilities

2015 £’000

2014 £’000

1 April 2014

37,328

31,880

271

390

Total market value of assets

Current service cost Curtailments

48

12

Interest cost

1,847

1,576

Benefits paid

(1,244)

(1,295)

103

170

Contributions by members Actuarial loss 31 March 2015

9,079

4,595

47,432

37,328

The following table sets out the impact of a change in the discount rates on the total obligation and projected service cost along with a +/- one-year age rating adjustment to the mortality assumption.

Sensitivity analysis of scheme liabilities

£’000

£’000

Adjustment to discount rate

+0.1%

0%

-0.1%

Present value of total obligation

46,552

47,432

48,329

Projected service cost

-

-

-

Adjustment to mortality age rating assumption

+1 year

None

-1 year

Present value of total obligation

45,705

47,432

49,163

-

-

-

Projected service cost

Reconciliation of fair value of scheme assets

2015 £’000

2014 £’000

1 April 2014

32,957

31,859

2,086

1,777

Contributions by members

103

170

Contributions by the employer

538

868

61

(419)

Benefits paid

(1,244)

(1,295)

31 March 2015

34,501

32,957

Expected return on scheme assets

Actuarial (loss)/gain

58

£’000

Sense Group: Report and accounts for the year ended 31 March 2015

The following components of the pensions charge have been recognised in the statement of financial activities in the year to 31 March 2015.

2015 £’000

2014 £’000

271

390

48

12

319

402

1,847

1,576

(2,086)

(1,777)

(239)

(201)

80

201

61

(690)

(455)

(3,327)

-

-

Change in financial assumptions underlying the present value of the scheme liabilities

(8,624)

(997)

Total actuarial (loss)/gain recognised

(9,018)

(5,014)

Amounts charged to the statement of financial activities: Current service cost Curtailment and settlements

Other finance cost/(income): Interest cost Expected return on assets Net credit to other finance cost/(income) Total statement of financial activities charge

Actuarial (loss)/gain recognised: Actual return less expected return on pension scheme assets Experience loss on pension scheme liabilities Gain from the change in pension increase policy

History of experience gains and losses

Defined benefit obligation (£’000) Plan assets (£’000) Deficit (£’000)

2015

2014

2013

2012

2011

2010

(47,432)

(37,328)

(31,880)

(30,025)

(33,432)

(40,180)

34,501

32,957

31,856

27,624

26,939

24,806

(12,931)

(4,371)

(24)

(2,401)

(6,493)

(15,374)

61

(419)

2,311

(1,562)

(76)

4,301

0.2%

(1.3%)

7.3%

-5.7%

-0.3%

17.3%

(455)

(3,599)

(11)

4,509

2,345

10

(1.0%)

(9.6%)

0.0%

15.0%

7.0%

0%

(9,018)

(5,014)

1,747

3,740

9,652

10,206

19%

13.4%

5.5%

12.5%

28.9%

25.4%

(Loss)/gain on scheme assets: Amount (£’000) % of scheme assets at end of year

Experience (loss)/gain on scheme liabilities: Amount (£’000) % of scheme liabilities at end of year

Total actuarial (loss)/ gain recognised: Amount (£’000) % of scheme liabilities at end of year

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

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

59

10. Company statement of financial activities As permitted by section 408 of the Companies Act 2006, and by paragraph 397 of the Statement of Recommended Practice 2005, the company’s statement of financial activities has not been included within these financial statements. The company’s gross income for the year was £57,360,782 (2014: £56,754,312) and total income for the year was £1,612,044 (2014: a loss of £488,905).

The company made a realised loss on investments of £73,146 (2014: a gain of £233,406) and recognised a defined benefit pension scheme deficit of £4,371,000 in March 2014, on which an actuarial loss of (£5,014,000) arose in the year. The company’s net decrease in funds was £7,479,102 (2014: decrease of £5,269,718).

11. Tangible assets

Group

Freehold property £

Long leasehold improvements £

Short leasehold improvements £

Furniture, fixtures and fittings £

Motor vehicles £

Total £

18,479,893

4,464,456

1,215,271

11,189,679

3,618,354

38,967,653

1,807,834

-

331,051

1,164,062

381,691

3,684,638

Cost At 1 April 2014 Additions Disposals At 31 March 2015

-

-

(14,750)

(867,385)

(319,726)

(1,201,861)

20,287,727

4,464,456

1,531,572

11,486,356

3,680,319

41,450,430

2,727,035

635,570

720,435

9,005,182

2,804,158

15,892,380

309,203

70,095

130,253

1,046,724

381,685

1,937,960

Accumulated depreciation At 1 April 2014 Charge for the year Disposals

-

-

(14,750)

(859,494)

(319,726)

(1,193,970)

3,036,238

705,665

835,938

9,192,412

2,866,117

16,636,370

At 31 March 2015

17,251,489

3,758,791

695,634

2,293,944

814,202

24,814,060

At 31 March 2014

15,752,858

3,828,886

494,836

2,184,497

814,196

23,075,273

Freehold property £

Long leasehold improvements £

Short leasehold improvements £

Furniture, fixtures and fittings £

Motor vehicles £

Total £

11,678,021

3,887,118

1,215,271

10,595,553

3,311,464

30,687,427

1,637,834

-

331,051

1,164,062

372,731

3,505,678

At 31 March 2015

Net book amounts

Company Cost At 1 April 2014 Additions Disposals At 31 March 2015

-

-

(14,750)

(432,774)

(220,249)

(667,773)

13,315,855

3,887,118

1,531,572

11,326,841

3,463,946

33,525,332

1,903,939

376,382

720,435

8,493,978

2,652,781

14,147,515

169,766

62,194

130,253

1,012,831

324,456

1,699,500

Accumulated depreciation At 1 April 2014 Charge for the year Disposals 31 March 2015

-

-

(14,750)

(424,883)

(220,249)

(659,882)

2,073,705

438,576

835,938

9,081,926

2,756,988

15,187,133

11,242,150

3,448,542

695,634

2,244,915

706,958

18,338,199

9,774,082

3,510,736

494,836

2,101,575

658,683

16,539,912

Net book amounts At 31 March 2015 At 31 March 2014

60

Sense Group: Report and accounts for the year ended 31 March 2015

12. Fixed asset investments Group

2015 £

2014 £

49

5,007,572

Fixed asset investments: Listed in UK (at market value)

Movements in the value of fixed asset investments listed in the UK can be explained as follows: 2015 £

2014 £

Opening market value

5,007,572

4,811,527

Management charges

(12,245)

(37,306)

(4,922,132)

(55)

(73,146)

-

-

233,406

49

5,007,572

2015 £

2014 £

(Sale)/Purchase of investments Realised (loss) on investments Unrealised gain on investments held Closing market value

Quoted securities are represented by:

UK equity shares and funds UK investment trusts and unit trusts

Company

49

-

-

5,007,572

49

5,007,572

2015 £

2014 £

Fixed asset investments: Listed in UK (at market value) Paid up shares: 100% holding in Helping Sense Limited

49

5,005,890

30,000

30,000

30,049

5,035,890

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

Opening market value Management charges (Sale)/Purchase of investments Realised (loss) on investments

2015 £

2014 £

5,005,890

4,809,845

(12,245)

(37,306)

(4,920,450)

(55)

(73,146)

Unrealised gain on investments held Closing market value

233,406

49

5,005,890

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

61

Quoted securities are represented by: 2015 £ UK equity shares and funds UK investment trusts and unit trusts

2014 £

49

-

-

5,005,890

49

5,005,890

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

13. Debtors Group Trade debtors Taxation recoverable Other debtors Prepayments and accrued income

2015 £

2014 £

4,858,226

4,187,387

134,897

144,629

306,311

484,642

2,505,943

3,202,562

7,805,377

8,019,220

2015 £

2014 £

3,124,264

2,271,273

-

4,023

134,897

144,629

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

Company Trade debtors Amounts owed by group undertakings Taxation recoverable Other debtors Prepayments and accrued income

161,132

229,126

2,385,153

2,660,815

5,805,446

5,309,866

2015 £

2014 £

4,000,000

4,000,000

2015 £

2014 £

4,000,000

4,000,000

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

14. Current asset investments Group Bank deposits

Company Bank deposits

62

Sense Group: Report and accounts for the year ended 31 March 2015

15. Creditors (amounts falling due within one year) 2015 £

2014 £

53,055

50,793

9,000

9,000

Trade creditors

975,224

1,100,730

Taxation and social security

924,758

940,327

Accruals and other creditors

2,835,756

2,952,539

Group Bank loans and overdrafts (note 16) Other loans

109,003

175,743

4,906,796

5,229,132

Company

2015 £

2014 £

Other loans

9,000

9,000

Amounts owed by group undertakings

7,012

-

Trade creditors

974,725

1,095,693

Taxation and social security

669,148

680,654

Accruals and other creditors

2,373,671

2,484,547

4,033,556

4,269,894

Deferred income

16. Creditors (amounts falling due after more than one year) 2015 £

2014 £

581,234

634,290

9,000

18,000

590,234

652,290

Company

2015 £

2014 £

Other loans

9,000

18,000

Group Bank loans and overdrafts Other loans

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

The bank loan repayments for the group fall due as follows: 2015 £

2014 £

Second to fifth year

251,036

236,464

After five years

330,198

397,826

581,234

634,290

At 31 March 2015 the charity had no obligations under finance leases.

63

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

18. Movements in funds Group

Balance at 1 April 2014 £

Income, gains, losses and transfers in £

Resources expended and transfers out £

Balance at 31 March 2015 £

14,430,339

75,258,079

81,389,167

8,299,251

10,402,879

1,304,077

1,648,255

10,058,701

1,055,613

-

965,685

89,928

1,584

-

-

1,584

106,957

29,000

31,912

104,045

79,743

-

24,391

55,352

General Total general

Designated Working with adults Working with children Working with older people Campaigns and publicity Quality, training and staff development

6,458,465

891,075

1,076,673

6,272,867

International work

373,412

-

19,711

353,701

Total designated

18,478,653

2,224,152

3,766,627

16,936,178

Working with adults

2,909,378

1,645,384

1,155,103

3,399,659

Working with children

1,037,179

704,677

762,980

978,876

72,858

25

45,009

27,874

4,960

77,546

77,818

4,688

16,139

695

-

16,834

Work in Scotland

Restricted

Working with older people Campaigns and awareness Quality, training and staff development Work in Scotland International work Total restricted

2,873,420

1,155,877

1,345,380

2,683,917

173,038

1,388,324

1,177,795

383,567

7,086,972

4,972,528

4,564,085

7,495,415

430,147

-

8,623

421,524

Endowment Working with adults Total endowment Total funds

64

430,147

-

8,623

421,524

40,426,111

82,454,759

89,728,502

33,152,368

Sense Group: Report and accounts for the year ended 31 March 2015

Balance at 1 April 2014 £

Income, gains, losses and transfers in £

Resources expended and transfers out £

Balance at 31 March 2015 £

Income, gains, losses and transfers in, excluding pension deficit

14,808,895

60,666,246

58,626,976

16,848,165

Pension deficit (note 10)

(4,371,000)

(8,560,000)

-

(12,931,000)

Total general

10,437,895

52,106,246

58,626,976

3,917,165

10,402,879

1,304,077

1,648,255

10,058,701

1,055,613

-

965,685

89,928

1,584

-

-

1,584

106,957

29,000

31,912

104,045

79,743

-

24,391

55,352

11,646,776

1,333,077

2,670,243

10,309,610

Working with adults

2,909,378

1,645,384

1,155,103

3,399,659

Working with children

1,037,179

704,677

762,980

978,876

72,858

25

45,009

27,874

Company General

Designated Working with adults Working with children Working with older people Campaigns and publicity Quality, training and staff development Total designated

Restricted

Working with older people Campaigns and awareness Quality, training and staff development Total restricted

4,960

77,546

77,818

4,688

16,139

695

-

16,834

4,040,514

2,428,327

2,040,910

4,427,931

8,623

421,524

Endowment Working with adults Total endowment Total funds

430,147 430,147 26,555,332

55,867,650

8,623

421,524

63,346,752

19,076,230

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

Designated funds Designated funds are unrestricted funds that the charity has earmarked for particular projects and uses in the future. Major examples are asset replacement funds and cyclical maintenance funds, which are created for the future maintenance, repair or replacement of property, equipment, vehicles and other assets necessary for the continuance of the charity’s work. Funds are transferred from unrestricted funds when particular projects are set up. £2m has been specifically designated to support the construction of TouchBase Birmingham.

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

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

65

19. Analysis of net assets between fund balances Net assets at 31 March 2015 were analysed between fund balances as follows: General £

Designated £

Restricted £

Endowment £

Total £

16,110,730

4,662,848

3,618,958

421,524

24,814,060

49

-

-

-

49

Net current assets

5,709,706

12,273,330

3,876,457

-

21,859,493

Long term liabilities

(590,234)

-

-

-

(590,234)

Group Tangible fixed assets Fixed asset investments

Pension liability

(12,931,000)

-

-

-

(12,931,000)

8,299,251

16,936,178

7,495,415

421,524

33,152,368

General £

Designated £

Restricted £

Endowment £

Total £

15,689,543

-

2,227,132

421,524

18,338,199

30,049

-

-

-

30,049

1,137,573

10,309,610

2,200,799

-

13,647,982

Total

Company Tangible fixed assets Fixed asset investments Net current assets

(9,000)

-

-

-

(9,000)

(12,931,000)

-

-

-

(12,931,000)

3,917,165

10,309,610

4,427,931

421,524

19,076,230

Long term liabilities Pension liability Total

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

21. Contingent liabilities Contingent liabilities of £1,196,000 (2014: £1,196,000) exist relating to grants received from the Department of Health and Leeds Healthcare towards the development of: 12 Hyde Close, Barnet; 138 Bradford Road, Leeds; and 509 Leeds and Bradford Road, Leeds, which may be repayable in certain circumstances.

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

22. Operating lease commitments At 31 March 2015, the charity had annual commitments under non-cancellable operating leases as set out below: 2015

2014

Land and buildings £

Other £

Land and buildings £

Other £

Within one year

190,658

19,500

245,628

21,203

In two to five years

995,706

65,761

1,047,908

70,827

1,594,003

-

1,395,854

-

2,780,367

85,261

2,689,390

92,030

Group Operating leases that expire:

After five years

66

Sense Group: Report and accounts for the year ended 31 March 2015

2015 Company

2014

Land and buildings £

Other £

Land and buildings £

Other £

57,959

10,921

98,296

12,624

Operating leases that expire: Within one year In two to five years After five years

897,521

65,761

973,090

70,827

1,475,903

-

1,295,779

-

2,431,383

76,682

2,367,165

83,451

23. Reconciliation of net incoming resources to net cash inflow from operating activities 2015 £

2014 £

Net (outgoing)/incoming resources before revaluation

1,817,403

(810,062)

Difference between pension charge and cash contributions

(458,000)

(667,000)

Investment income received

(198,320)

(313,801)

14,138

37,306

Interest paid

12,245

42,449

1,937,960

1,868,320

Profit on sale of tangible fixed assets

(19,335)

-

Decrease/(increase) in stocks

(13,519)

147,532

Decrease/(increase) in debtors

244,801

(569,631)

Increase/(decrease) in creditors

(355,556)

266,368

Net cash inflow from operating activities

2,981,817

1,481

Investment management charges Depreciation

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

Increase/(decrease) in cash in the year Cash inflow from loans and lease financing Decrease in current asset investments Changes resulting from cash flows

2015 £

2014 £

4,370,925

721,632

59,793

56,845

-

(4,000,000)

4,430,718

(3,221,523)

Net liquid resources at 1 April 2014

13,769,668

16,991,191

Net liquid resources at 31 March 2015

18,200,386

13,769,668

25. Analysis of changes in net liquid resources At 1 April 2014 £

Cash flows £

Other changes £

At 31 March 2015 £

Cash at bank and in hand

10,481,751

4,370,925

-

14,852,676

Current asset investments

4,000,000

-

-

4,000,000

Debt due within one year

(59,793)

59,793

(62,055)

(62,055)

(652,290)

-

62,055

(590,235)

13,769,668

4,430,718

-

18,200,386

Debt due after one year

67

26. Related parties 1 Sense has taken advantage of the option conferred by FRS8 Related Party Disclosures that allows it not to disclose transactions with subsidiaries.

2 Sense provides services to individuals and, in some cases, relatives, family members or parents of the beneficiaries also serve as trustees/board members of the charity. These services are provided as part of the contracts agreed with funding authorities as with any other beneficiary.

3 Sense is building a community centre in Birmingham (TouchBase). This is a £14 million project and various contracts and tenders are being drawn up. As part of this, Sense completed a tender process for appointment of architects for this project and the panel included the Treasurer, CEO and Group Director of Finance and Resources. The contract for architectural services was awarded to Glenn Howell Associates. The Chairman of the Board of Trustees, John Crabtree, is also Chairman of Glenn Howell Associates. The total amount paid to Glenn Howell Associates as part of this contract amounted to £303,859.

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

A summary of the results of the subsidiaries for the year ended 31 March 2015 are shown below: Sense Scotland

2014 £

Incoming resources

21,701,220

21,650,161

Resources expended

21,699,193

21,765,862

2,027

(115,701)

Net movement in funds Assets

14,592,737

14,662,195

Liabilities

(1,356,742)

(1,428,228)

Funds

13,235,995

13,233,967

2015 £

2014 £

Incoming resources

1,830,799

1,421,778

Resources expended

1,627,468

1,627,236

203,331

(205,458)

Sense International

Net movement in funds Assets Liabilities Funds

Coventry Society for the Blind

68

2015 £

984,967

823,878

(148,953)

(187,066)

840,143

636,812

2015 £

2014 £

Incoming resources

-

-

Resources expended

-

-

Net movement in funds

-

-

Assets

-

-

Liabilities

-

-

Funds

-

-

Sense Group: Report and accounts for the year ended 31 March 2015

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

A summary of the results of the subsidiary for the year ended 31 March 2015 is shown below: 2015 ÂŁ

2014 ÂŁ

Turnover

2,587,135

2,609,472

Cost of sales

(536,564)

(762,780)

Helping Sense Limited

Gross profit Operating expenses Net profit

2,050,571

1,846,692

(1,970,989)

(1,680,286)

79,582

166,406

Assets

111,877

198,770

Liabilities

(81,877)

(168,770)

69

Major supporters Sense 29th May 1961 Charitable Trust AMX by Harman Arts Council England Audrey Earle Charitable Trust Austin & Hope Pilkington Trust Awareness Fund Baron Davenport’s Charity Trust BBC Children In Need Appeal Big Lottery Fund Brian Wilson Charitable Trust Cantiacorum Foundation Centerbridge Foundation (USA) CHEAR Foundation CHK Charities Ltd Department for Education Department of Health Edward Cadbury Charitable Trust Eveson Charitable Trust Foresters Friendly Society Fowler Smith and Jones Trust G J W Turner Trust Garner Homes, Mark Garner Jesus Hospital Charity John James Bristol Foundation Joseph Strong Frazer Trust King/Cullimore Charitable Trust Lady Blakenham’s Charity Trust Miss W E Lawrence 1973 Charitable Settlement Myristica Trust NEC P&G Prestige Payne Gallwey 1989 Charitable Trust Peter Storrs Trust Ray of Light Foundation (from Patrick Ryder) Richard Radcliffe Charitable Trust Rowlands Trust Smith Charitable Trust Snozone Sport England TD Maverick The Ballinger Charitable Trust The Bartle Family Charitable Trust The Bartle Family Charitable Trust The Beatrice Laing Trust The Blair Foundation The Boltini Trust The Camelia Trust The City Bridge Trust The Connie & Albert Taylor Charitable Trust

70

The D&R Lewis Family Charitable Trust The Esmee Fairbairn Foundation The Estate of Helen Eunice Johnson The Florence Shute Millennium Trust The Fulmer Charitable Trust The G M C Trust The Geoff and Fiona Squire Foundation The George & Esmee Pollitzer Settlement The Hadley Trust The Hyde Foundation The John Pinto Foundation The Liz & Terry Bramall Foundation The Lockwood Charitable Foundation The Maxwell Family Foundation The Misses C M Pearson & MV Williams Charitable Trust The Morton Charitable Trust The Northwick Trust The Odin Charitable Trust The Open Gate Trust The P F Charitable Trust The Patrick and Helena Frost Foundation The Peacock Charitable Trust The Princess Anne’s Charities Trust The Robert Hall Foundation The Tanner Trust The Thomas Farr Charity The Thomas J Horne Memorial Trust The Thompson Family Charitable Trust The William Kenneth Hutchings C.T. Wolfson Foundation

Sense Group: Report and accounts for the year ended 31 March 2015

Charity information Sense Scotland Aberbrothock Skea Alexander Moncur’s Trust The Big Lottery Fund Gannochy Charitable Trust The Robertson Trust William S Philips Fund

Registered address for Sense and Sense International 101 Pentonville Road, London, N1 9LG Tel: 0300 330 9250 or 020 7520 0999 Textphone: 0300 330 9252 or 0207 520 0959 Fax: 0300 330 9251 or 020 7520 0958 Email: reception@sense.org.uk

Sense International

Information and advice

CLSA Chairman’s Trust Department for International Development European Commission Europe Aid Co-operation Office Guernsey Overseas Aid Commission Knadel Liliane Foundation Scottish Government State of Jersey Overseas Aid Committee The Beatrice Laing Trust The Big Lottery Fund The Bryan and Walter Guinness Charitable Trust The Carvill Trust The Hugh Symons Charitable Trust The James Tudor Foundation The Souter Charitable Trust The Ulverscroft Foundation Vitol Charitable Foundation

For details about the support and services Sense offers and information about multi-sensory impairments, please contact the Information and Advice service on: Tel: 0300 330 9256 or 020 7520 0972 Textphone 0300 330 9252 or 020 7520 0959 Textphone: 0300 330 9256 or 020 7520 0972 Fax: 0300 330 9251 Email: info@sense.org.uk

Professional advisers to Sense independent auditors PricewaterhouseCoopers LLP Benson House, 33 Wellington Street, Leeds, LS1 4JP

Bankers National Westminster Bank plc Tavistock House, Tavistock Square, London, WC1H 9JA

Solicitors Anthony Collins Solicitors LLP 134 Edmund Street, Birmingham, B3 2ES

Insurance advisors Willis Ltd Stuart House, Caxton Road, Fulwood, Preston, PR2 9RW

Internal auditors Crowe Clark Whitehill LLP St Bride’s House, 10 Salisbury Square, London, EC4Y 8EH

71

Sense and Sense International

Sense Scotland

101 Pentonville Road London, N1 9LG

43 Middlesex Street Kinning Park Glasgow, G41 1EE

Tel: 0300 330 9250 Fax: 0300 330 9251 Text: 0300 330 9252 Email: info@sense.org.uk Website: www.sense.org.uk

Sense Northern Ireland Sense Family Centre The Manor House 51 Mallusk Road Mallusk County Antrim, BT37 9AA Tel/text: 028 9083 3430 Fax: 028 9084 4232 Email: nienquiries@sense.org.uk

Tel: 0141 429 0294 Fax: 0141 429 0295 Text: 0141 418 7170 Email: info@sensescotland.org.uk Website: www.sensescotland.org.uk

Sense Cymru TouchBase Wales Caerphilly Business Park Van Road Caerphilly, CF83 3ED Ff么n/tel: 0300 330 9280 Ffacs/fax: 0300 330 9281 Testud/text: 0300 330 9282 Email: cymruenquiries@sense.org.uk