trustees' report and accounts 2009

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Trustees report and accounts


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British Red Cross |Trustees report and accounts 2009

Patron

Her Majesty The Queen

President

His Royal Highness The Prince o Wales

KG KT GCB OM

Deputy presidents

Her Royal Highness Princess Alexandra

The Hon Lady Ogilvy LG GCVO

The Countess Mountbatten o Burma

CBE CD JP DL

Honorary vice-presidents

Lord Barnard TD

The Rt Hon Baroness Chalker o

Wallasey

Sylvia, Countess o Limerick CBE

Proessor John McClure OBE

Mrs Elspeth Thomas CBE DL

Vice-presidents

Mr Anthony AndrewsMs Angela Rippon OBE

Mrs Maria Shammas MBE

Board o trustees

Chairman

Mr James M. T. Cochrane

Vice-chairmen

Mrs Beryl Hutchinson MBE

Mr Terrence Collis

Mrs Victoria Peterkin

Treasurer

Mr Russell Walls

Other trusteesDr Helen Bevan OBE (until 31

December 2009)

Mrs Sue Brown

Mrs Stella Cummings

Mr David Fall CMG

Mr Stanley Fitches MBE

Ms Amy Foan (rom 1 January 2010)

Mr Christopher Hedges

Mr Michael Herriot MBE

(rom 1 Januar y 2010)

Mr Azal Khan CBE

Lady Lamport

Dr Lise Llewellyn (rom 1 January 2010)

Mrs Evelyn Pegley (until 31 December

2009)

Dr J. Kay Richmond

Mr Graham Stegmann CBE

Senior management team

Chie executive

Sir Nicholas Young

Director o international

Matthias Schmale (until 31 March 2009)

David Peppiatt (rom 1 April 2009)

Director o UK service

development

Margaret Lally

UK director, Northern Territory

Jean Henderson

UK director, Scotland,

Northern Ireland and

the Isle o Man Territory

Gerry McLaughlin

UK director, South Eastern

Territory

Liz Page

UK director, Wales and Western

Territory

Annie Bibbings

Director o human resources

and education

Roger Smith FCIPD

Director o undraising

Mark Astarita

Director o communications

Philip Talbot

Director o strategy andcorporate perormance

Kate Lee

Director o nance and

business development

Rohan Hewavisenti ACA

External auditors

BDO LLP,

Emerald House,

East Street, Epsom,

Surrey KT17 1HS

Bankers

National Westminster Bank plc

Bank o Scotland

Investment managers

Lazard Asset Management Ltd,

50 Berkeley Street,

London W1J 8HA

External legal advisers

Withers,

15 Old Bailey,

London EC4M 7EG

Right: Kim Collins(let) with SallyLudlow-Rhodes,a British RedCross care in thehome volunteer


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The British Red Cross is required at all times to act

in accordance with the undamental pr inciples o the

International Red Cross and Red Crescent Movement:

Humanity

Impartiality

Neutrality

Independence

Voluntary service

Unity

Universality
http://redcross.org.uk/http://redcross.org.uk/


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Contents

Chairman and chie executives statement 4

Our work in pictures 6

Trustees report 8

Objectives 9

Activities, achievements and perormance 10

Review o nances 20

Structure and governance 23

Report o the independent auditors tothe trustees o the British Red Cross Society 26

Accounts or the year ended 31 December 2009 29

Thank you

Let: a PalestinianRed Crescentvolunteer assesses

the needs o thelocal community


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Chairman and chieexecutives statement

2009 was a signicant year or theBritish Red Cross, as we set out ourdirection or the next ve years in ournew corporate strategy: Saving Lives,Changing Lives.

The strategy, which covers the period2010-2015, sets out our ambitions,priorities and the dierence we aspireto make. It ocuses on our main areaso work: helping people let in needby major emergencies; building moreresilient communities; providing essentialhealth and social care to those madevulnerable by everyday crises; andsupporting the International Red Crossand Red Crescent Movement to meetgrowing humanitarian needs overseas.

This ambitious agenda builds onthe success o our previous ve-yearstrategy, Across the world and aroundthe corner, which nished at the end othis year. This report is based on the

earlier strategy.Our evaluation o the strategy shows

we successully achieved the prioritieswe set ourselves and implemented iteectively. But ve years is a long timeto plan or, so we also remained exibleenough to adapt our detailed plans wherenecessary to serve our wider objectives.Among many successes, our response tothe 2007 UK oods stands as testamentto our emergency response skills, while

our tsunami recovery programmes inIndonesia, Sri Lanka and the Maldiveshave rebuilt homes and livelihoods.

A common thread running throughboth strategies is an emphasis onresponding to emergencies, positioningourselves as the leading voluntaryorganisation in this eld. We arecontinuing to develop our ability tocarry out this core part o our work withmaximum eectiveness.

As the year came to an end, thesecapabilities were tested to the limit,as severe ooding in Cumbria inNovember was ollowed by a montho heavy snowall across the UK. Ourvolunteers and sta were involved insustained responses to both crises, onceagain proving their proessionalism anddedication.

Then, on 12 January 2010, adevastating earthquake struck Haiti,killing more than 200,000 people andleaving an estimated one million morein need o urgent assistance. The British

Red Cross sent cash, relie items andexpert sta to support the massiveinternational relie operation. We alsoraised unds through our own appealand the Disasters Emergency Committee.It will take Haiti years to recover romthe earthquake and, at the time owriting, we are starting to plan how wewill support this.

2009 was marked by a crisis oanother kind. The ongoing recession has

aected the British Red Cross in commonwith most other large UK charities.However, due to a prudent approach,


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5

we have continued to deliver ourservices to the most vulnerable peoplewithout making any cuts and, thanksto the remarkable generosity o ourdonors, our income rom undraisinghas increased. We have also kept tightcontrol on our costs.

Our accounts, however, show a dropin our total income, rom 243.5 millionin 2008 to 182.1 million in 2009. Thisreduction is due to restricted money

rom the Department or InternationalDevelopment (DFID) now beingtranserred directly to the InternationalCommittee o the Red Cross. Theseunds thereore continue to go to thewider Movement.

In 2009, we also began to develop anadvocacy agenda, which will be launchedin 2010. By speaking up on behal oour beneciaries, we hope to inuencechange which will make a positivedierence to their lives.

Here in the UK, our 31,606volunteers and sta continue to showenormous dedication and commitment.Our supporters, too, have shownexceptional generosity in difculteconomic times. We would like to thankthem or making our work possible andlook orward to their ongoing support,as we put our new strategy into action.

James M. T. Cochrane

Chairman o the board o trustees

Sir Nicholas YoungChie executive


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Our work in pictures

The Red Cross was so good to me when myhome in Morpeth was ooded and I wanted

to give something back. I think I have theempathy to support people in Cumbria.I know what they are going throughLilian Nelson, who volunteered during the Cumbria foods

Search and

rescue: Red Crossvolunteers look outor people in need inCockermouth

Displaced: peoplein Swabi camp,Pakistan, receiveemergency suppliesrom the Red Cross(below let)

Flu riends: helpingvulnerable people bydelivering anti-viralmedicine (below)


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7

Gaza: a mother and

child are let homelessduring the Gaza crisisin January

Operation amphibian:young people aretrained in internationalhumanitarian law andrst aid (centre let)

Haiti earthquake:

Haitian Red Crossvolunteer Jean Zacharietreats an injured boy

(below)


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9

Objectives

The legal objects o the British Red Cross, as laid out in its revised

Royal Charter, are to provide assistance to victims o armed conicts and

to work or the improvement o health, the prevention o disease and the

prevention and alleviation o human suering in the UK and throughoutthe world.

The British Red Cross vision is o a world in which everyone receives

the help they need in a crisis. Our core purpose is to mobilise the power

o humanity so that individuals and communities have the capacity

to prepare or, deal with and recover rom a crisis.

Our corporate strategy,Across the world and around the corner, set out

the organisations objectives and provided the ramework or our core

activities or the period 2005-2009.

Let: Red Crossvolunteers areequipped witha feet o 4x4vehicles, manydonated by Land

Rover, whichproved invaluableduring the severewinter weather


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Activities, achievementsand perormance

Charitable activities

Emergency response: we

will respond to emergencies

and build local and individual

capacity to withstand and

recover rom them.

2009 plans included:

> consolidating our position as theleading voluntary sector provider oemergency response services in theUK, and as a leading National Societysupporting the International Red Crossand Red Crescent Movement in disastermanagement

> developing our ability to use mutual aideectively and operate telephone support

lines across the UK, upgrading ourcommunications systems and completingour recovery programme in Morpeth

> developing a household economicsecurity team to support the transitionrom relie to recovery ollowing adisaster and completing our nalpost-tsunami recovery programmein the Maldives.

During 2009, we responded to 19international disasters, including ournatural disasters which swept through

the Asia Pacic region within the spaceo a ew days in September, destroyinglives, homes and livelihoods. ThePhilippines was hit rst by TyphoonKetsana, which continued its path odestruction to Vietnam. Then a tsunamistruck the Samoan islands, ollowedby an earthquake o the west coast oIndonesia. A second typhoon hit thePhilippines a ew days later.

We deployed two logistics teams toco-ordinate the earthquake relie eort inPadang, Indonesia, and sent 1.6 millionin cash and relie supplies to help morethan 75,000 survivors in all the aectedcountries.

The eectiveness o our logisticsemergency response unit (ERU)deployments is a highlight o the last veyears and we have enhanced our abilityto support the Movement internationallyby establishing new household economic

security and mass sanitation ERUs thesanitation team was the rst o its kind.

While these dramatic eventsdominated the headlines, we alsoresponded to less high-proleemergencies, such as chronic ood crisesin East Arica, caused by drought. Wealso responded when severe oodinghit Namibia in April, sending our masssanitation unit to improve sanitationand hygiene. When more oods in

Angola orced 80,000 people romtheir homes in May, we sent our newhousehold economic security team to


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help them restart their livelihoods. Ourmass sanitation unit also helped raiseawareness o good hygiene practicesamong 70,000 people during thecholera epidemic in Zimbabwe, wherewe distributed hygiene kits to another30,000 people.

When ghting erupted in the GazaStrip in January, we ran an appeal, tookpart in a Disasters Emergency Committeeappeal, and sent six delegates to work

with the International Committee o theRed Cross (ICRC) in the region. We alsosupported the ICRC in other conictzones, including Sri Lanka, Pakistan,Yemen and the Democratic Republic oCongo. The ICRC nutrition programmewe assist in Gereida camp, in SudansDarur region, is now in its th yearand continues to support thousands omalnourished children.

Our work to help those aected by thebiggest natural disasters o the last veyears continued: we supported recovery

programmes to help over 30,000 peoplein Myanmar rebuild their livelihoodsater Cyclone Nargis and another 50,000do the same in China, ollowing theSichuan earthquake (both in May 2008).Having wrapped up tsunami recoverywork in Indonesia and Sri Lanka in2008, this year we completed ournal house-building programme in theMaldives. We also restored water suppliesto 11,600 people in our villages in

Pakistan, devastated by the October 2005earthquake.

As well as responding to disasters,we also help people to prepare or andwithstand them. Research has shownthat every pound spent on buildingresilience to crises is equivalent to 4spent in a disasters atermath1. In 2009,or example, we helped 206,000 peopleacross 85 communities in Bangladeshprepare or cyclones.

During 2009, we responded to3,608 emergencies in the UK, including81 major incidents. In February andDecember (continuing into January2010), heavy snowall brought chaosto many parts o the UK, with wholecommunities cut o. Volunteer teamssupported ambulance services across thecountry, using our eet o 4x4 vehicles,many donated by Land Rover. Theseenabled us to reach areas inaccessible tostandard ambulances. We also helped

vulnerable people get the help theyneeded, or example by transportingcarers or providing hot ood.

We also responded to several majorres, including a blaze at the GrandHotel in Blackpool and two res inats in Peckham and Camberwell. Eachinvolved the evacuation o hundreds opeople to rest centres, where we providedpsychosocial (practical and emotional)support.

Following the 2008 Morpeth oods,we worked with other agencies to supportthe communitys recovery. To identiy

redcross.org.uk1 International Federation o Red Cross and Red Crescent Societies

Below: anemergencyresponse team

during a trainingexercise


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those most in need, our volunteers calledat ood-aected houses, set up an

inormation point to provide practicaladvice and had a strong presence on themulti-agency ood recovery group, workwhich continued throughout 2009.

When Cockermouth was delugedby severe oods in November, wehelped evacuate more than 200 people,deploying our Scotland-based switwater rescue team, which is trained inood response and equipped with twospecially-adapted boats. We also knew

rom our experiences in Morpeth theimportance o providing more helpas people begin the long process orecovery. Once again, our volunteerswent door-to-door to identiy those inneed o extra support, and were on handat three ood advice centres.

These were just the latest in a series ohigh-prole, well-executed responses toUK emergencies over the last ve years,including the major ooding o 2007.We have built up our leading role in thevoluntary sector over the course o ourstrategy and carried out sustained and

steady growth in our relationships withcategory one emergency responders.

We have also developed our mutual aidcapacity so that we are better able todeploy assets to dierent parts o thecountry, backing up a local responsewith national resources.

As part o our commitment toenhance our national emergencyresponse capability, we signedcontracts to upgrade our pager andradio systems. This will enable us tocommunicate better with the emergency

services at major incidents, includingmultiple emergencies which happensimultaneously across the UK, such asooding or snow.

Last year, we also expanded theRed Cross telephone support line,which is activated ollowing majordisasters such as the Asian tsunamiand London bombings. We launched atraining programme to build a databaseo skilled volunteers. The plan was asuccess and the support line register nowhas 306 volunteers, o whom 130 areully trained.

I think its marvellousthat Red Crossvolunteers take the timeto come out and helppeople like me. It hasbeen like having a riendat the end o the phoneFred Perks, 87, (let) who received help

rom Red Cross fu riend Jo Footit


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We also built stronger relationshipswith a number o primary care trustsand local authorities through our swineu preparations. Although the pandemicwas less serious than predicted, it wasstill important to be prepared. Ourvolunteers acted as u riends, deliveringmedication and, where necessary, otheressential supplies to more than 1,650people who did not have riends orrelatives nearby.

We worked closely with the Foreign& Commonwealth Ofce to helpresettle vulnerable British nationalsrom Zimbabwe back to the UK. Teamso rst aid and psychosocial supportvolunteers accompanied 198 people,many o whom were elderly and inrm,on their journey to their chosen place

o resettlement.

Short-term crisis care: we will

provide short-term crisis care

services to support vulnerable

people and communities.


>

ensuring we put the beneciary at thecentre o what we do by using our newprogramme approach in the UK

> developing new care in the homeprojects to support people in a crisisand seeing an increase in reach, as wellas quality, in key health and social careactivities

> scaling up our overseas community-based health and care programmes, witha particular ocus on HIV and AIDS.

This year we began implementinga new programme approach or ourUK services, the result o our yearsdevelopment work, which began with ourRethinking Vulnerability research studyin 2006.

Our programme approach involvesusing our capabilities and exibilityto support people in crisis. This will

be achieved by assessing what isneeded, being more accountable to ourbeneciaries, listening to what they saythey need and oering an integratedpackage o support. It could meanhelping people through our own services,advocating on their behal or enablingthem to get support rom other agencies.This approach will be integrated into our2010-2015 strategy.

One example o how we have ocused

more closely on our beneciaries needsover the last ve years is our workwith destitute reugees and asylum

The Red Crescent is a

place where I can cometo eel supported, sharestories and cry with others.I dream o a good lieor my daughter, that shegrows up healthy. I want tobecome a grandmother andsee her kids grow up

Aliona, 26, rom Kazakhstan (let), who

has received support rom the Kazakhstan

Red Crescent TB/HIV programme, whichwe support with nancial assistance rom

AstraZeneca


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seekers. This group is one o the mostvulnerable we help. We provide short-term emergency support and expertadvice on accessing whatever limitedresources are available to them andhave become the lead agency in thisarea. We have also advocated on behalo asylum seekers who are destitute,using evidence drawn rom the workwe do.

Our programme approach was also

tested last year through nine care inthe home pilot projects, which supportvulnerable people by preventingunnecessary hospital admissions or atera hospital stay. The pilots, unded by our2007 partnership with Tesco, were setup between October 2008 and August2009 and are based across the UK, romOrkney to Devon.

We have also rened our oer tocare in the home service commissioners,to demonstrate more clearly the waywe meet their needs and those o ourbeneciaries. A number o other newcare in the home schemes were developedin 2009, including ones which ocused onproviding a rapid response to a crisis.

In total, our health and social careservices, which include care in thehome, medical equipment and transportservices, supported 471,097 people.We also provided assistance to 30,854reugees and asylum seekers, o whom

9,251 were destitute.In January 2010, we successully

transerred our our remaining carehomes to Heritage Care, a not-or-protprovider, who met the rigorous criteriaset by the trustees. It is anticipatedthat the transer, which was plannedin ull consultation with keystakeholders, will ensure the longer-termviability o the homes.

Internationally, we supported HIV

and AIDS programmes in nine countries,including South Arica, Lesotho, Ethiopia

and China, reaching more than 320,000people through providing home-basedcare and peer education. We reachedmillions more people with anti-stigmamessages and supported programmeswhich combat the deadly combination oHIV and tuberculosis in central Asia.

We also provided unding, advice anddelegates to support community-basedhealthcare and water and sanitationprogrammes in 14 countries including

Liberia, Sierra Leone, Zimbabwe,Aghanistan, Pakistan and Mongolia.These programmes reached more than370,000 people.

Humanitarian action:

we will promote and support

the principle and practice

o humanitarian action and

provide opportunities to

volunteer, and to give moneyand active support.


> scaling up our community-based rstaid and mass public rst aid training

> expanding our humanitarian educationprogramme and increasing the number oyoung supporters and volunteers.

Equipping people with the skillsto perorm the ultimate humanitarianact saving a lie remains at theheart o our work. In 2009, we ocusedon expanding our community-basedrst aid programmes to reach morevulnerable and excluded groups. Theseare people who oten have a particularreason or needing rst aid skills,such as those living in rurally isolated

communities, injecting drug users,young carers, reugees and people at risk


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rom specic health problems, such asheart disease.

Our inclusive rst aid programme,aimed at people with disabilities, wasa great example o how community-based rst aid can work. Nearly 6,000disabled people attended an inclusive

rst aid courseduring the three-year programme 1,000 more than

the target. Reachingmore vulnerable andexcluded groups was akey part o our rst aidtraining plans or thelast ve years around18 per cent o ourrst aid courses overthat period, excludingcommercial training,targeted these groups.

In 2009, 303,980 people attended ourrst aid courses. At the same time, weworked hard to promote the relevanceo rst aid learning through the media,our website and marketing materials reaching more than nine million peoplein this way. We also provided rst aidcover to help keep people sae at 10,509public events, rom music estivals tomarathons.

Our humanitarian education

programme went rom strength tostrength, reaching 366,304 youngpeople, while our online resources orteachers were accessed over 230,000times making us the largest providero educational support to schools in thecharity sector.

In partnership with the internationallegal practice Allen & Overy LLP,we launched Justice and Fairness, ateaching resource about international

No longer do peoplehave to sit at home,

eeling isolated andunable to participate.The inclusive rst aidprogramme has giventhousands o dea anddisabled people theskills and condenceto perorm rst aidSteve Wynne, dea rst aid trainer

Right: inclusiverst aid trainingor people withdisabilities


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humanitarian law, delivered to everysecondary school in the UK. Anothersuccess was rolling out our PositiveImages education programme, whichraises awareness o reugee issues,to a European audience, reaching527,738 people.

The explosion in social mediaprovided another channel or reachingnew supporters. By the end o 2009,

we had 11,400 ollowers on socialnetworking sites including Twitterand Facebook. Through their onlinecontacts, our ollowers helped usreach a much larger audience ohundreds o thousands o people.Another 118,113 watched our onlinevideos and our World AIDS Day videocampaign, eaturing Konnie Huq,attracted 37,000 viewers and sparkeda lively online debate about the stigma

surrounding HIV.

Supporting and strengthening

the Movement

In 2009, the International Red Crossand Red Crescent Movement celebratedthree landmark events: the 150thanniversary o the Battle o Solerino(which inspired the creation o theRed Cross), the 90th anniversary othe International Federation o Red

Cross and Red Crescent Societies, andthe 60th anniversary o the GenevaConventions.

In June, 57 British Red Crossvolunteers joined thousands o RedCross volunteers rom around the worldat a celebratory event in Solerino,Italy. We also hosted a conerence oninternational humanitarian law withthe Foreign & Commonwealth Ofce,to celebrate the anniversary o the

Geneva Conventions and debate theiruture role. Over the last three years,we have played a key role in helping

Above: TVpresenter and RedCross supporterKonnie Huqeatured in a webvideo designedto get viewers tothink about theirown responsesto HIV
http://www.youtube.com/user/BritishRedCross#p/u/11/Ke2QKx26iNc


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the ICRC develop and implement itsstrategy or restoring amily links. Weare now starting to see that strategybeing implemented by other NationalSocieties.

In November, we were representedat two international statutory meetingso the Movement in Nairobi, Kenya:the Council o Delegates (attended byall parts o the Movement) and theFederations General Assembly. We were

closely involved in the development o theFederations Strategy 2020, passed at theGeneral Assembly, which gives strategicguidance to National Societies or thenext ten years and has inormed our owncorporate strategy or 2010-2015.

To ensure our partner NationalSocieties are able to deliver good qualityprogrammes, our technical advisersprovided organisational developmentsupport in 22 countries in Arica,Asia and the Middle East. We alsogave capacity-building support toNational Societies in Cte dIvoire,Liberia, Mozambique and Sierra Leone,

in partnership with the Canadian,Netherlands and Norwegian RedCross Societies.

Cutting carbon emissions

An audit in 2006 showed that the BritishRed Cross generated 11,500 tonneso CO

2in the UK, mainly through

properties and vehicle use. Over the last

three years, we have introduced changesto reduce our carbon ootprint.

To gain the support o volunteers andsta, we held a series o roadshows andappointed carbon reduction championsin 2009.

We have set a ve per cent reductiontarget or properties or 2010 and areencouraging sta to cut down on airand car travel and make more use otelephone and video conerencing.

We have also cut carbon emissionsrom our eet o vehicles rom 165gper kilometre travelled in 2002 to 119gtoday a cut o nearly 37 per cent.

Right: Volunteersand sta romacross the worldmet in Italy tocommemorate the150th anniversary

o the Battle oSolerino


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Scotland

Note: We provide inormation

specifcally on our activities in

Scotland, as part o our obligations

to the Ofce o the Scottish Charity

Regulator (OSCR), and in Northern

Ireland, in anticipation o its new

charities legislation.

In 2009, we responded to 688emergencies including oods in Taysideand Northern Scotland. We alsosupported the response in Cockermouthin Cumbria, where our swit waterrescue team assisted in over 200 rescues.We expanded our re and emergencysupport service in Lothian and Bordersand Tayside and took part in nationalconsultations on the ambulance service,re and rescue ramework, and waterrescue.

Our volunteers provided rst aidcover at 2,287 sporting and music eventsand trained 19,851 people in rst aid.This included community-based rstaid training or drug users, black andminority ethnic communities and youngcarers.

Our health and social care serviceshelped 22,950 people live moreindependently. We launched care inthe home services in Argyll, Ayrshire,

Orkney and Wick, a telecare projectin Argyll and Bute, and a beriendingservice in Moray. Our reugee unithelped 415 people, and launched a lieskills course or young reugees.

We also worked with teachersto reach 16,366 young people withhumanitarian education workshops.

Northern Ireland

Our re and emergency support serviceprovided practical and emotional supportto 254 people aected by emergencies.This included 130 Roma people whowere orced to ee their homes in Belastin June, ater a series o attacks on theircommunity.

In the summer, we trained 180members o Girlguiding UK in emergency

response at a special simulated exercise.We provided rst aid training to

3,509 people, and raised awareness olie-saving skills among a urther 2,820people. We oered community-basedrst aid training to rural communities,vulnerable young people and people withdisabilities.

We helped 13,175 people liveindependently at home, providing care inthe home or 170 people and 2,181 loanso medical equipment.

We assisted 253 reugees and asylumseekers, an increase o 96 per centrom 2008.

We ofcially opened our new premisesat Heron Road, Belast in October.

Below: a centredelivers reugeeand internationaltracing andmessage services


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Wales

The British Red Cross in Wales workedclosely with local resilience orums toprepare or and respond to swine u,helping 200 people and standing ready toprovide two call centres. Our volunteersalso provided rst aid cover at 475 eventsand trained 42,855 people in rst aid.

Health and care services in Walescontinued to grow, with 19,271

service users and three new projectsin Denbighshire, Carmarthen andConwy. Medical equipment servicesalso grew, helping 9,063 people. We arediscussing the uture direction o thisservice with the Welsh Assembly, givingevidence to the Health and WellbeingCommittee. Our humanitarian educationprogrammes reached more than 55,239young people and our reugee servicesassisted 1,032 people.

We held two high-prole eventslast year, both attended by the healthminister: a rugal lunch, where chieexecutive Sir Nicholas Young and FirstSea Lord Sir Mark Stanhope spokeabout humanitarianism, and an event inthe Senedd attended by 100emergencyresponse leaders in Wales.

Our volunteers

Our dedicated volunteers give up theirtime to ensure people get the help theyneed in a crisis. In 2009, the British RedCross had 28,208 volunteers, who carryout a wide range o activities in the UK.These include: responding to emergencies,rst aid, delivering health and socialcare and humanitarian educationprogrammes, supporting reugees andasylum seekers, and undraising. Withoutthem, we could not carry out this lie-

saving and lie-changing work.

Plans or 2010

2010 is the rst year o our new strategy,Saving Lives, Changing Lives, which willshape our work in the UK and overseasover the next ve years. During thelietime o the strategy, we will seek tohave an even greater impact on the liveso people vulnerable to a crisis.

Our main priorities or 2010 include:

> strengthening our emergencyresponse to ensure more individuals andcommunities aected by emergencieshave the practical and emotional supportthey need during and immediately aterthe event

> responding to the Haiti earthquake bymeeting peoples immediate needs andassessing how we can best support thetransition rom relie to recovery

> building resilience in individuals andcommunities to help them prepare orand withstand disasters. We will also beexploring and dening what the termresilience may mean in a widerUK context

> increasing the impact o theInternational Red Cross and RedCrescent Movement in meeting the needs

o the most vulnerable people by being anactive, supportive and inuential membero the Movement.


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Review o fnances

Our total income decreased in 2009 rom243.5 million to 182.1 million. Thisreduction was anticipated in last yearsreport and is due to restricted moneyrom the Department or InternationalDevelopment (DFID) being transerreddirectly to the International Committeeo the Red Cross. DFID income ell by70.3 million to 7.9 million in 2009.

Fundraising and trading

Voluntary income, which includes incomerom emergency appeals, undraising,regular giving, cash donations andlegacies, increased rom 87.4 millionto 91.6 million. Following a trend inthe charity sector to recognise legacyincome at the date o probate, we havereviewed our own methodology. Thishas resulted in our recognising about9 million additional legacy income in

2009, bringing the total legacy incometo 29.5 million. Excluding legacies, ourvoluntary income increased by 2.3 percent to 62.1 million.

Our individual supporters gave moregenerously than ever beore, in spiteo the recession. The number o peoplewho donate regularly by direct debitgrew rom 300,000 to 365,000 evidence o the success o our regulargiving investment programme. We also

received 10 million in response to directmail appeals.

We continued to receive major supportrom corporate partners, includingongoing unding rom AstraZeneca orour TB work overseas and emergencyrelie stocks in our Kuala Lumpurwarehouse. And Red Cross AppealWeek raised 935,000 throughcollections and events.

Trading income showed an increasein turnover o 4.3 per cent to 24.9million. During a ortnight in November,our shops took 1.2 million in their100,000-a-day challenge, beating lastyears record o 1 million taken in thesame two-week period.

Charitable income

Income rom charitable activities ellto 61.5 million (2008: 128.0 million)primarily due to the all in DFID grantsmentioned above.

Short-term crisis care incomerose six per cent to 30.5 million.Our community equipment servicesgenerated 10.6 million through theloan o medical equipment, such asadjustable wheelchairs, an increase oseven percent on 2008. The remaindero the increase was generated throughnew and renewed agreements withstatutory partners.

The all in DFID income also largely

led to emergency response incomealling to 23.8 million (2008: 73.2


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million) and income or supporting andstrengthening the Movement allingto 6.5 million (2008: 25.5 million).Included within emergency responseis Red Cross Training, which deliversworkplace rst aid courses and broughtin 12.8 million, a six per cent decreaseon 2008 due to the recession.

Charitable expenditure

Excluding expenditure linked to DFIDincome, our charitable expenditureincreased by 8.8 per cent to 117.3million. Charitable expenditure includesa planned spend-down on restricted anddesignated unds.

In response to the recession, weestablished a major expenditure panelto review the organisations nancesand major expenditure more regularlyand rigorously. We also improved our

management reporting and cash owmonitoring.

Reserves

As at 31 December, our ree availablereserves amounted to 43.4 million(2008: 23.7 million). Reserves ell toas low as 16 million during the year,but recovered through cost reductionactions taken, recovery in the value oour investments and the large accrualo legacy income.

We reviewed our reserves policyand set a new minimum reserves levelo 15 million. The Saving Lives,

Changing Lives strategy outlines plansto draw down on the ree reserves overthe minimum level over the next two tothree years to invest in new areas such asimproving accountability to beneciaries;strengthening our advocacy; anddeveloping our national emergencycapabilities, among others.

The reserves policy is set to ensurethere is no disruption o British RedCross services in the event o an

unoreseen reduction in income orincrease in expenditure. The board o

I wanted to see the worldand have an adventure.Raising money or the RedCross seemed the naturalthing to do because its an

international charity whichhelps people right acrossthe worldMohan Everett (pictured let), who cycled 15,000

miles rom Dieppe to Australia with his riend

Finn Cotton (right)


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trustees reviews the reservespolicy annually. The reservespolicy is based on an evaluationo risk and sets our minimumree available reserves level.

Our reserves include apension reserve to reect theBritish Red Cross two denedbenet pension schemes(which are both closed to newmembers). The net pension

decit was 1.6 million as at31 December 2009 (2008 decit:0.6 million) and the actuariallosses during the year were 1.6million in the year (2008: 0.3million loss).

Reserves also cover thecontingent liabilities in relationto the membership o thePension Trusts Growth Plan.British Red Cross has soleliability or 4.6 million andjoint liability with the Ordero St John or 2 millionpension liabilities o the JointCommittee o the Order oSt John o Jerusalem andBritish Red Cross Society.

Investment policy andperormance

Under our revised RoyalCharter, the board o trusteesmay invest any money notimmediately required or ourlegal objects in any investments,securities or property.However, we will not invest incompanies with a signicantinterest in trading arms or inthe manuacture o tobaccoproducts.

Our investment objective isto enhance the value o capital

and growth in income in realterms through the selection oinvestment in equities, xedinterest securities and cash. Theboard carries out an annualreview o its investment policy.

Our investments are heldin managed portolios. Aninvestment sub-committee othe nance and audit committeeregularly reviews our investment

portolio. Our investmentsrecovered some o their valueater the turbulence in nancialmarkets in 2008 with total gainson investments in 2009 o 6.3million (2008: 13.8 milliontotal losses).

Following the preparationo a ve-year corporate andnancial plan, the investmentsub-committee reviewed theinvestment strategy in 2009 anddecided to reduce our exposureto equities in light o the decisionto lower the minimum reserveslevel. By February 2010, wereduced our equity holdings to12 million rom 29.6 million,taking advantage o the gains instock markets.


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Structure andgovernance

Legal status

The British Red Cross was ounded in1870 and incorporated by Royal Charterin 1908. A Supplemental Royal Chartertook eect on 1 January 1998 andthis was revised by HM The Queen inCouncil on 17 July 2003. The governinginstruments under which the British RedCross operates comprise this revisedcharter, the standing orders and otherpolicies agreed rom time to time by itsgoverning body, the board o trustees.

Organisation

The board o trustees comprises nineelected members and up to eight membersco-opted by the board itsel (in 2009there were seven co-opted trustees onthe board). Newly elected and appointed

trustees join the board at the start o thecalendar year in most instances.

Trustees terms o ofce last or threeyears, and they can serve two consecutivethree-year terms, ater which theymust stand down rom the board or atleast one year. A nominations group isconvened to oversee trustee recruitment.The recruitment or elected trustees isconducted via a national electoral collegeo eight volunteers council chairs; theboard o trustees raties the electionresult. When recruiting co-opted trustees,posts are advertised and the nominationsgroup interviews short-listed applicantsand presents its recommendation orappointment to the board o trustees.

The board has appointed a nanceand audit committee to oversee itsnancial transactions, includinginvestments. This committee has beengiven specic responsibilities and

makes relevant recommendations to theboard. While the approval o policy is amatter or the board, that body worksclosely with the chie executive and hiscolleagues on the senior managementteam, which is charged with theimplementation o policy.

Based in London, the UK Ofce othe British Red Cross houses the ofceso the chairman, the chie executive andcentral sta. The main unctions o the

sta are to lead the implementation o thepolicies laid down by the board and tosupport the work o local volunteers and

Below: Val Steele,a Red Crossvolunteer, helpsa amily aectedby the foods inCockermouth


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sta in the UK and overseas. UK Ofcesta perorm operational activities in theareas o UK programmes, internationaloperations, undraising, communications,human resources, nance and strategy.

There are our Territory teams inthe UK: Northern England; Scotland,Northern Ireland and the Isle o Man;South Eastern England; and Wales andWestern England.

These teams support the work o

volunteers and sta in 21 British RedCross Areas. There are a urther eightBranches in British Overseas Territories.Since 2006, the nancial results o theseOverseas Branches have been includedin the consolidated nancial statements.Previously they were excluded on thegrounds o non-materiality.

A wholly-owned trading subsidiary,Britcross Limited, supports theundraising activities o the BritishRed Cross. The assets, liabilities andtrading results o this company, which isincorporated in the UK, are consolidatedinto the nancial statements. As itsactivities are integral to the British RedCross, the commentary on undraisingon page 20 also covers the activities othis subsidiary.

The British Red Cross is a prominentmember o the International RedCross and Red Crescent Movement,with volunteers and sta contributing

to a number o initiatives within boththe International Federation o RedCross and Red Crescent Societies andthe International Committee o theRed Cross.

Risk management

Achievement o the charitys objectivesnecessarily entails taking certain risks.

These risks, as well as other strategic andoperational risks, have been identiedand ranked in terms o impact and

likelihood. The trustees are satisedthat appropriate systems are in placeto monitor, manage and mitigate theorganisations exposure to risk. Theyconsider that the ollowing rameworkprovides the British Red Cross withadequate measures to reduce the eectso risk and sufcient resources in theevent o adverse conditions:

> a risk management group, comprising

members o the senior managementteam, which reviews risks to theorganisation and the processes in placeto mitigate risk

> a nance and audit committee, chairedby the treasurer, which reviews riskand controls within the organisation,and receives reports rom management,the risk management group, and auditreports rom the risk and assuranceunction

> a risk and assurance unction whichcarries out a programme o internalaudits to cover the major risks identiedby management and trustees. Actionplans are developed in conjunctionwith management to counter anyweaknesses and recommendations aresystematically ollowed up. Audit reportsare submitted to the nance and auditcommittee, together with regular updates

on progress on the implementation orecommendations. The nance and auditcommittee approves the internal auditplan, oversees the work programme ointernal audit coverage and considersthe overall adequacy o the controlenvironment.

The above ramework is used

to ensure:

>

an extensive insurance strategy,which provides cover against arange o risks


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> a comprehensive annual planningprocess, which includes the identicationand analysis o risk as an integral parto planning

> embedding risk identication andassessment procedures within routineoperating procedures.

Trustees responsibilities

Consolidated nancial statements areprepared or each nancial year. Thesegive a true and air view o the stateo the British Red Cross and o theannual results. In preparing the nancialstatements, the trustees have:

> selected suitable accounting policiesand applied them consistently

> made judgements and estimates thatare reasonable and prudent

> ollowed applicable accountingstandards without any materialdepartures

> prepared the accounts on a goingconcern basis.

Financial statements are publishedon the organisations website (redcross.

org.uk) in accordance with legislationin the United Kingdom governingthe preparation and dissemination onancial statements, which may varyrom legislation in other jurisdictions.The trustees responsibilities also extendto the ongoing integrity o the nancialstatements contained therein.

During 2009, the British Red Crossrecruited three new trustees, who joinedthe board at the start o 2010. This

has resulted in a ull complement o 17trustees. A number will be eligible orre-appointment/election in 2010.

As a result o a review o its electedtrustee arrangements in 2008, this yearsaw the rst trustee election under thenew arrangements. The our Territoryelections were replaced with onenational election. This is part o theboards commitment to ensuring that itsgovernance arrangements are eectiveand relevant, as well as ensuring thatover time its diversity reects the breadtho the services we provide and the

communities in which we operate.Trustees participated in a range

o development activities during theyear. From visits to British Red Crossareas, services and events, to externalconerences, the British Red Crossensures that its board members are keptabreast o developments in the sector aswell as given the opportunity to broadentheir skills and experiences to help thembe eective in discharging their duties.

Public benet

The board o trustees has given regardto the legislative and regulatoryrequirements or disclosing how itscharitable objectives (as set out in ourrevised Royal Charter) have providedbenet to the public. The board otrustees has complied with the duty setout in Section 4 o the Charities Act

2006 (and under the equivalent charitiesregulatory regime in Scotland). Thisreport outlines how our achievementsduring 2009 have beneted the public,either directly or indirectly.

On behal o the trustees

James M. T. Cochrane

Chairman o the board o trustees

25 March 2010


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Report o the independentauditors to the trustees o theBritish Red Cross Society

We have audited the nancial statementso the British Red Cross or the yearended 31 December 2009 whichcomprise the consolidated statement onancial activities, the consolidated andcharity balance sheets, the consolidatedcash ow statement and the relatednotes. The nancial statements have beenprepared under the accounting policiesset out therein.

This report is made solely tothe charitys trustees, as a body, inaccordance with the Charities Act 1993and the Charities and Trustee Investment(Scotland) Act 2005. Our audit work hasbeen undertaken so that we might stateto the charitys trustees those matterswe are required to state to them in anauditors report and or no other purpose.

To the ullest extent permitted by law, wedo not accept or assume responsibilityto anyone other than the charity and thecharitys trustees as a body, or our auditwork, or this report, or or the opinionswe have ormed.

Respective responsibilitieso trustees and auditors

The trustees responsibilities orpreparing the Annual Report and thenancial statements in accordance with

applicable law and United KingdomAccounting Standards (United KingdomGenerally Accepted Accounting Practice)are set out in the trustees report.

We have been appointed as auditorsunder section 43 o the CharitiesAct 1993 and section 44(1) (c) o theCharities and Trustee Investment(Scotland) Act 2005 and report inaccordance with regulations made underthose Acts. Our responsibility is to auditthe nancial statements in accordancewith relevant legal and regulatoryrequirements and International Standardson Auditing (UK and Ireland).

We report to you our opinion as towhether the nancial statements givea true and air view and are properlyprepared in accordance with the

Charities Act 1993, the Charities andTrustee Investment (Scotland) Act 2005and regulations 6 and 8 o the CharitiesAccounts (Scotland) Regulations 2006.We also report to you whether in ouropinion the inormation given in thetrustees Annual Report is consistentwith the nancial statements

In addition, we report to you i, inour opinion, the charity has not keptproper and sufcient accounting records,

i the charitys nancial statements arenot in agreement with these accountingrecords, i we have not received all the


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redcross.org.uk

inormation and explanations we requireor our audit.

We read other inormation containedin the Annual Report, and considerwhether it is consistent with theaudited nancial statements. The otherinormation comprises only the chairmanand chie executives statement, thetrustees report and the summary oincome and expenditure. We consider theimplications or our report i we become

aware o any apparent misstatements ormaterial inconsistencies with the nancialstatements. Our responsibilities do notextend to other inormation.

Basis o audit opinion

We conducted our audit in accordancewith International Standards onAuditing (UK and Ireland) issued bythe Auditing Practices Board. An auditincludes examination, on a test basis,o evidence relevant to the amounts anddisclosures in the nancial statements.It also includes an assessment o thesignicant estimates and judgementsmade by the trustees in the preparation othe nancial statements, and o whetherthe accounting policies are appropriateto the groups and the charitable parentscircumstances, consistently applied andadequately disclosed.

We planned and perormed ouraudit so as to obtain all the inormationand explanations which we considerednecessary in order to provide us withsufcient evidence to give reasonableassurance that the nancial statementsare ree rom material misstatement,whether caused by raud or otherirregularity or error. In orming ouropinion we also evaluated the overalladequacy o the presentation o

inormation in the nancial statements.

Opinion

In our opinion:

> the groups nancial statements give atrue and air view, in accordance withUnited Kingdom Generally AcceptedAccounting Practice, o the state othe groups aairs as at 31 December2009, and o its incoming resources andapplication o resources or the year then

ended;

> the parent charitys nancial statementsgive a true and air view, in accordancewith United Kingdom Generally AcceptedAccounting Practice, o the state o theparent charitys aairs as at 31 December2009;

> the nancial statements have beenproperly prepared in accordance withthe Charities Act 1993, the Charities andTrustee Investment (Scotland) Act 2005and regulations 6 and 8 o the CharitiesAccounts (Scotland) Regulations 2006;and

> the inormation provided in thetrustees annual report is consistent withthe nancial statements.

BDO LLP

BDO LLP* is eligible to act as an

auditor in terms o section 1212 o the

Companies Act 2006.

Chartered Accountants and Statutory

Auditor, Epsom, United Kingdom

25 March 2010

*BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127)

27


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Its good that the Red Crossis here. Lie is quite difcult attimes particularly bringing upthe children but I hope theywill have a bright utureNahida Mohammed, rom the Maldives, received help

rom the British Red Cross ater the tsunami


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Accountsor the year ended31 December 2009

redcross.org.uk

Let: a schoolgirlin the Maldives,with a British RedCross-built housein the background


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Summary o income and expenditureor the year ended 31 December 2009

Income 182.1m

Voluntary income 91.6m

Trading activities 24.9m

Emergency response 23.8m

Short-term crisis care 30.5m

Supporting and strengtheningthe Movement 6.5m

Other 4.8m

Expenditure 181.0m

Fundraising 32.2m

Trading activities 22.9m

Emergency response 51.0m

Short-term crisis care 52.8m

Supporting and strengtheningthe Movement 10.2m

Humanitarian action 8.5m

Governance costs 3.3m


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redcross.org.uk

Consolidated statement o nancial activitiesor the year ended 31 December 2009

31

2009 2008Unrestricted Restricted Total Total

Notes 000 000 000 000

Incoming resources

Incoming resources rom generated unds Voluntary income 2 81,780 9,78291,562 87,355 Trading activities 24,860 624,866 23,839Investment income 930 917 1,847 3,348Total incoming resources rom generated unds 107,570 10,705 118,275 114,542

Incoming resources rom charitable activitiesEmergency response 16,131 7,700 23,831 73,247Short-term crisis care 29,811 719 30,530 28,674Humanitarian action 381 321 702 591Supporting and strengthening the Red Cross Movement 99 6,369 6,468 25,518

Total incoming resources rom charitable activities 3 46,422 15,109 61,531 128,030

Other incoming resourcesMiscellaneous income 777 45 822 775Net gains on disposal o xed assets 1,426 (3) 1,423 201

Total incoming resources 156,195 25,856 182,051 243,548

Resources expended

Costs o generating unds Voluntary income 31,610 60332,213 32,927 Trading activities 22,916 2322,939 21,954

Investment management costs 36 16 52 25Total resources expended on generating unds 54,562 642 55,204 54,906

Costs o charitable activitiesEmergency response 32,126 18,836 50,962 98,101Short-term crisis care 45,690 7,144 52,834 47,723Humanitarian action 7,387 1,081 8,468 7,420Supporting and strengthening the Red Cross Movement 4,202 5,952 10,154 29,050Total resources expended on charitable activities 89,405 33,013 122,418 182,294

Governance costs 3,338 2 3,340 2,555

Total resources expended 4 147,305 33,657 180,962 239,755

Net incoming/(outgoing) resources beore transers 8,890 (7,801) 1,089 3,793

Transers between unds 7 430 (430)

Net incoming/(outgoing) resources beorerecognised gains and losses 9,320 (8,231) 1,089 3,793

Gains/(losses) on investments 9 6,228 63 6,291 (13,770) Actuarial losses on dened benet pension schemes 14 (1,634) (1,634) (289)

Net movement in unds 13,914 (8,168) 5,746 (10,266)

Total unds 1 January 7 93,431 46,585 140,016 150,282

Total unds 31 December 7 107,345 38,417 145,762 140,016

All the activities relate to continuing operations.


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Consolidated balance sheetas at 31 December 2009

2009 2008Notes 000 000

Fixed assets Tangible assets 867,879 68,684Investments 9 37,778 53,339

105,657 122,023

Current assetsStocks 2,886 2,691Debtors 10 27,461 19,356Investments 9 21,115 18,731Cash at bank and in hand 11,720 4,668

63,182 45,446

Creditors: amounts alling due within one year 11 (15,724) (20,954)

Net current assets 47,458 24,492

Total assets less current liabilities 153,115 146,515

Creditors: amounts alling due ater more than one year (275) (275)Provision or liabilities and charges 12 (5,470) (5,575)

Net assets beore pension scheme decit 147,370 140,665

Dened benet pension scheme decit 14 (1,608) (649)

Net assets 145,762 140,016

Funds:

Restricted unds 7 38,417 46,585

Designated unds 7 11,435 15,664

General und tangible xed assets 54,155 54,690Dened benet pension scheme und (1,608) (649)Free available reserves 43,363 23,726

General unds 7 95,910 77,767

Total unds 145,762 140,016

The British Red Cross has not prepared a separate balance sheet or the charity as this is not considered to be materiallydierent to the consolidated balance sheet.

For and on behal o the British Red Cross,

James M. T. Cochrane Russell WallsChairman, board o trustees Chairman, nance and audit committee25 March 2010 25 March 2010


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33

Consolidated cash fow statementor the year ended 31 December 2009

2009 2008Notes 000 000

Net cash outfow rom operating activities (see below) (6,955) (8,255)Capital expenditure and nancial investment 16 16,314 (14,080)

9,359 (22,335)

(Increase) / decrease in current asset investments (2,307) 16,621

Increase / (decrease) in cash 17 7,052 (5,714)

Reconciliation o net incoming resources

to net cash outfow rom operating activitiesNet incoming resources 1,089 3,793Depreciation charge 6,801 5,062Surplus on sale o tangible xed assets (1,423) (201)Increase in stocks (195) (611)Increase in debtors (8,105) (2,109)(Decrease) / increase in creditors (4,342) 142Decrease in provisions or liabilities and charges (105) (13,949)Net charges or dened benet pension scheme (675) (382)

Net cash outfow rom operating activities (6,955) (8,255)

Reconciliation o net unds to movement

in short-term unds less borrowingIncrease/(decrease) in cash in the period 7,052 (5,714)Increase/(decrease) in current asset investments 2,307 (16,621)

9,359 (22,335)Unrealised gains on current asset investments 77 505

9,436 (21,830)

Net short-term unds less borrowing at 1 January 23,124 44,954

Net short term unds less borrowing at 31 December 17 32,560 23,124

The accompanying notes orm an integral part o these consolidated nancial statements.


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Notes to the consolidated nancial statementsor the year ended 31 December 2009

1. Accounting policies

(a) Scope and basis o the nancial statements

The consolidated nancial statements have been preparedunder the historical cost convention, as modied by therevaluation o investments at market value, and are inaccordance withAccounting and Reporting by Charities:Statement of Recommended Practice (Revised 2005)(the SORP), applicable accounting standards in theUnited Kingdom and the reporting requirements o theCharities Act 1993.

The results and balance sheet o the British Red Crosssubsidiary, Britcross Limited, have been consolidated on aline by line basis. Britcross Limited makes up accounts to31 December. Separate statements o nancial activities

and balance sheet have not been presented or the charityalone as these are not considered to be materially dierentrom the consolidated statement o nancial activities andconsolidated balance sheet.

The nancial statements incorporate the results o allmaterial activities overseas where the British Red Cross hasoperational responsibility. The results and net assets o RedCross operations in eight British Overseas Branches havebeen included in the nancial statements.

(b) Fund accounting

General unrestricted unds are available or use at thediscretion o the trustees in urtherance o the general

charitable objectives. A pension reserve is included withinunrestricted unds to refect the pension decit.

Designated unds are those unrestricted unds transerredrom the general und or particular purposes or projects atthe discretion o trustees. The creation o designated undsis approved by the trustees beore the year end to meetspecic uture plans. Amendments to estimates used incalculating the level o designated unds are made up to thedate o approval o the accounts.

Restricted unds are donated or either a particular areaor purpose, the use o which is restricted to that area orpurpose. Such donations are principally or internationalpurposes.

(c) Incoming resources

All income is accounted or when the British Red Cross hasentitlement to the unds, the amount can be quantied andthere is certainty o receipt. Where income is received inadvance o providing goods and/or services, it is deerreduntil the British Red Cross becomes entitled to that income.

Unless there is evidence o uncertainty o receipt, residuarylegacies are recognised rom the date o probate wherea reliable estimate can be made. Income rom will orreversionary trusts is not recognised until the lie interest haspassed away. Income rom pecuniary legacies is recognisedupon notication.

Gits donated or resale are included as income when theyare sold. Donated assets and services are included at thevalue to the British Red Cross where this can be reliablyquantied. Donated services rom our volunteers are notincluded within the nancial statements.

(d) Resources expended and basis o allocation o cost

All expenditure is accounted or on an accruals basis.

Direct costs are those specically related to producing theoutput o an activity, or example the costs incurred in directcontact with beneciaries.

Support costs are those which provide indirect support toront-line output provision examples are central nance,human resources and management inormation services.

Support costs not attributable to a single activity have beenallocated on a basis consistent with identied cost drivers orthat cost category such as sta head count, foor space andexpenditure.

Governance costs relate to the direct running o the charity,allowing the charity to operate and generate the inormationrequired or public accountability. They include the costs osubscriptions related to membership o the International RedCross and Red Crescent Movement, as well as the costs otrustee meetings and internal and external audits.

(e) Tangible xed assets and depreciation

All tangible xed assets costing more than 1,000 are

capitalised and included at cost, including any incidentalexpenses o acquisition and irrecoverable VAT. Depreciationis provided on a straight-line basis over their useuleconomic lives as ollows:

Freehold properties 50 years

Leasehold properties> Shop premises the shorter o the term o the

lease and ve years

> Other premises the shorter o the term o thelease and 50 years

Freehold premises ten years

improvements

Leasehold premises the shorter o the term o theimprovements lease and ten years

Vehicles, equipment between two and ten yearsand urniture

Fixture and ttings ve years

Computer equipment between one and threeyears

Freehold land Nil

Assets in course Nilo construction


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() Pensions

The dened benet pension scheme current service costs,together with the scheme interest cost less the expectedreturn on the scheme assets or the year, are charged tothe relevant expenditure heading within the consolidatedstatement o nancial activities in line with the salary costso the related employees. The dened benet schemeassets are measured at air value at the balance sheet date.Scheme liabilities are measured on an actuarial basis at thebalance sheet date using the projected unit method anddiscounted at a rate equivalent to the current rate o returnon a high-quality corporate bond o equivalent term to thescheme liabilities. The change in value o assets and liabilitiesarising rom asset valuation, changes in benets, actuarialassumptions, or change in the level o decit attributableto members is recognised in the consolidated statement o

nancial activities within actuarial gains/losses on denedbenet pension schemes. The resulting dened benet assetor liability is presented separately on the ace o the balancesheet. The British Red Cross will not recognise a net assetor its dened benet schemes because the British RedCross does not have the agreement o the pension undtrustees to recover any surplus on the schemes.

Pension costs in respect o dened contribution schemesare charged to the consolidated statement o nancialactivities or the period in which they are payable.

(g) Investments

Investments are stated at market value at the balance

sheet date and the consolidated statement o nancialactivities shows net investment gains and losses arising romrevaluation o the investment portolio and disposals duringthe year.

(h) Stocks

Stocks are stated at the lower o cost and net realisablevalue. Provision is made or obsolete, slow-moving ordeective stock where appropriate. Items donated or resaleand distribution are not included in the nancial statementsuntil they are sold or distributed. Emergency stocks held ordisaster response are transerred rom stock to resourcesexpended when issued rom the warehouse.

(i) Value added tax

Irrecoverable value added tax is allocated to the category oexpenditure to which it relates.

(j) Provisions

Provisions are recognised when the British Red Crosshas a legal or constructive nancial obligation, that can bereliably estimated and or which there is an expectation thatpayment will be made.

The British Red Cross has entered into commitments orsupport and rehabilitation work in areas aected by theAsian tsunami. Provisions are recognised where a rm

agreement is in place.

(k) Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease terms, even i the payments are notmade on such a basis.

Benets received and receivable as an incentive to sign anoperating lease are, similarly, spread on a straight-line basisover the lease term, except where the period to the reviewdate on which the rent is rst expected to be adjusted to theprevailing market rate is shorter than the ull lease term, inwhich case the shorter period is used.

(l) Foreign currencies

Transactions in oreign currencies are recorded at therate o exchange prevailing at the date o the transaction.

Monetary assets and liabilities are translated into sterlingat the exchange rate ruling on the balance sheet date.All exchange dierences are taken to the consolidatedstatement o nancial activities.


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2. Voluntary income

2009 2008Unrestricted Restricted Total Unrestricted Restricted Total

000 000 000 000 000 000

Regular giving 28,308 41 28,349 19,402 59 19,461Public donations,appeals and undraising 15,577 5,750 21,327 13,703 15,685 29,388Git aid 8,759 414 9,173 6,327 825 7,152Legacies 28,975 494 29,469 26,263 412 26,675DEC* appeals 2,018 2,018 3,195 3,195Grants 20 1,065 1,085 23 1,213 1,236Other 141 141 248 248

Total 81,780 9,782 91,562 65,966 21,389 87,355

*Disasters Emergency Committee

Legacy income is not recognised until the British Red Cross has entitlement to the unds, the amount can be quantied andthere is certainty o receipt. The estimated value o legacies which have been notied but not recognised at 31 December2009 was 10.5 million (2008: 16.7 million).

The charity v supports our o our projects to develop youth volunteering opportunities. Grant income accounted or in2009 includes support rom v o 122,000 (2008: 188,000). The total value o grants rom v over the period o support is524,000.

3. Incoming resources rom charitable activities

2009 2008Grants Other Total Total

000 000 000 000

Emergency planning and responseUK 52 416 468 444International 3,115 4,323 7,438 56,445First aid and emergency support services 80 15,845 15,925 16,358

3,247 20,584 23,831 73,247

Short-term crisis careMedical equipment services 292 13,733 14,025 13,264Care and support programmes 3,561 12,944 16,505 15,410

3,853 26,677 30,530 28,674

Humanitarian action 311 391 702 591

Supporting and strengthening the Red Cross Movement 5,960 508 6,468 25,518

Total 13,371 48,160 61,531 128,030

Supporting and strengthening the International Red Cross and Red Crescent Movement grant income includes 900,000rom the Department or International Development as part o our strategic ramework agreement, which provides coreunding or our international work to urther strengthen the eectiveness o the Movement as a key pillar o the internationalhumanitarian system.


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4. Resources expended

Support 2009 2008Direct Costs Total Total

000 000 000 000

Costs o generating unds Voluntary income 30,752 1,46132,213 32,927 Trading activities 22,023 91622,939 21,954Investment management costs 52 52 25

52,827 2,377 55,204 54,906

Charitable activities

Emergency planning and responseUK 4,327 600 4,927 4,529International 19,428 19,428 67,673First aid and emergency support services 24,636 1,971 26,607 25,899

48,391 2,571 50,962 98,101

Short-term crisis careMedical equipment services 15,778 1,166 16,944 16,561Care and support programme 33,575 2,315 35,890 31,162

49,353 3,481 52,834 47,723

Humanitarian action 7,742 726 8,468 7,420

Supporting and strengthening the Red Cross Movement 10,041 113 10,154 29,050

115,527 6,891 122,418 182,294

Governance costsSubscriptions to ICRC and Federation 1,632 1,632 1,246Sta 1,014 88 1,102 897 Audit ees accounts 100 100 111Fees to auditors or other services 31 31 13Other 475 475 288

3,252 88 3,340 2,555

Total 171,606 9,356 180,962 239,755

The basis o allocation o support costs is described in note 1(d) and urther analysis is provide in note 5.

Our total resources expended includes irrecoverable VAT o 1.8 million (2008: 2.5 million).

Included under the 2009 direct costs are grants to the International Federation o Red Cross and Red Crescent Societies(Federation) and International Committee o the Red Cross (ICRC) o 6.6 million (2008: 75.5 million) and grants to otherNational Societies o 2.1 million.


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5. Support costs by activity

Supporting and

Generating Emergency Short-term Humanitarian strengthening 2009 2008unds response crisis care action the Movement Governance Total Total000 000 000 000 000 000 000 000

Finance 657 615 1,088 130 11 9 2,510 2,825Human resources 1,024 882 663 236 65 50 2,920 2,734Managementinormation services 613 1,015 1,641 356 37 29 3,691 3,264Chie executives oce 82 59 90 4 235 309

Total 2,376 2,571 3,482 726 113 88 9,356 9,132

Support costs have been allocated on the basis o the accounting policy set out in note 1(d).

6. Trading subsidiary

Britcross Limited, the British Red Cross wholly owned trading subsidiary incorporated in the United Kingdom,traded as ollows:

2009 2008000 000

Turnover 1,331 1,921Interest receivable 5

Total income 1,331 1,926

Expenditure (788) (756)

Net income donated to British Red Cross 543 1,170

Britcross Limited engages in the sale o cards and gits as well as corporate sponsorship in aid o the British Red Cross.The turnover and expenditure o Britcross Limited are included within trading activities.


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7. Funds

Actuariallosses on

Balance benet Balance

1 January Investment pension 31 December

2009 Income Expenditure gains schemes Transers 2009000 000 000 000 000 000 000

General unds 77,767 156,188 (143,071) 6,228 (1,634) 432 95,910Designated unds 15,664 7 (4,234) (2) 11,435

Total unrestricted unds 93,431 156,195 (147,305) 6,228 (1,634) 430 107,345

Total United Kingdom

restricted unds (note a) 23,078 4,177 (5,724) 63 (646) 20,948Total internationalrestricted unds (note b) 22,640 21,059 (27,932) (2,276) 13,491Disaster Fund (note c) 867 620 (1) 2,492 3,978

Total restricted unds 46,585 25,856 (33,657) 63 (430) 38,417

Total unds 140,016 182,051 (180,962) 6,291 (1,634) 145,762

Designated unds

Designated unds relate to transormational projects that the British Red Cross developed to ensure delivery o its UK,international and inormation systems strategies. These projects began in 2006 and are due to complete and deliver by 2010.

The projects include:

a) Standardising and improving existing emergency response practices including replacing emergency response equipment.

b) Investments in undraising and nance systems as well as trading. This investment is complete and the unds balancerelates to the net book value o the assets purchased.

c) Funding local developments in support o the implementation o the Saving Lives, Changing Lives strategy.

Restricted unds

a) UK restricted unds include:

> 8.2 million o properties and other assets held or restricted purposes> unds raised through our partnership with Tesco which are being used to deliver a wide range o community-based services> legacies with a geographical and/or service restriction> a variety o other local, national and European unding sources to deliver projects over the next two and three years.

The balance o unds is held or the provision o locally agreed services. Expenditure plans have been agreed or all materialrestricted unds.

The transer rom international restricted unds includes 2 million rom the tsunami und to our Disaster Fund.

b) Signicant programmes o work are planned or the disbursement o international restricted und balances as at 31December 2009. These include 1.5 million or an HIV programme in South Arica, 1.1 million or a Sichuan (China)earthquake programme and 1 million or ICRCs nutritional programme in Gereida, south Darur.

c) The Disaster Fund allows us to prepare or and respond to humanitarian disasters abroad and in the UK. We undraise

specically or the Disaster Fund, and as stated on emergency appeal materials it can also contain unds donated toemergency appeals where we raise more than can be reasonably and eciently spent on that specic response.


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8. Tangible assets

Vehicles, Assetsequipment in the

Freehold Leasehold and course oproperty property urniture construction Total

Cost 000 000 000 000 000

At 1 January 2009 42,338 31,423 34,840 8,625117,226Completions 1,629 2,778 2,331 (6,738) Additions 2,475 296 3,244 4786,493Disposals (272) (503) (1,698) (2,473)

At 31 December 2009 46,170 33,994 38,717 2,365121,246

Accumulated depreciation

At 1 January 2009 11,293 8,958 28,291 48,542Charge or year 2,164 1,661 2,976 6,801Disposals (191) (279) (1,506) (1,976)

At 31 December 2009 13,266 10,340 29,761 53,367

Net book value

At 31 December 2009 32,904 23,654 8,956 2,365 67,879

At 31 December 2008 31,045 22,465 6,549 8,625 68,684


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9. Investments

Fixed assets investments 000

Market value 1 January 2009 53,339Additions at cost 9,988Disposals at market value (31,763)Net investment gains in the year 6,214

Market value 31 December 2009 37,778

Cost 31 December 2009 36,556

Market value Per cent o Market value Per cent o2009 2009 2008 2008The portolio consists o the ollowing: 000 portolio 000 portolio

UK equities 17,745 47 24,457 46Overseas equities 5,579 15 5,095 10UK xed income 12,795 34 13,899 26Cash 1,659 4 9,888 18

37,778 100 53,339 100

The ollowing investments represented more than Number o Market value Per cent ove per cent o the value o the portolio at 31 December 2009 units 000 portolio

Lazard Thematic Global Institutional Share Class 65,152 5,579 15Lazard Sterling Corporate Bond Fund Institutional Share Class 5,018,931 4,251 11

2009 2008Current asset investments 000 000

Money market undsBlackRock Institutional Sterling Liquidity Fund 5,019 -CCLA COIF Charities Deposit Fund 2,512 -Royal Bank o Scotland Global Treasury Funds plc 2,506 10,310Barclays Global Investments Sterling Liquidity Funds plc 3,572HSBC Sterling Liquidity Fund Class A plc 4,849

10,037 18,731

Deposits 9,878

Investment property in the UK 1,200

Total 21,115 18,731


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10. Debtors2009 2008000 000

Service and training debtors 5,509 4,930Accrued income 3,654 5,294Other debtors 811 720Prepayments 3,175 3,685Investment income receivable 164 157Tax recoverable 4,463 2,916Legacies receivable 9,685 1,654

27,461 19,356

11. Creditors: amounts alling due within one year2009 2008Total Total

Trade creditors 3,867 3,834Accruals 7,831 13,283Deerred income 2,568 2,479Taxes and social security costs 1,458 1,358

15,724 20,954

2009 2008

Movements in deerred income during the year were as ollows: 000 000

At 1 January 2,4795,353Income recognised during the year (2,479) (5,275)Income deerred during the year 2,568 2,401

At 31 December 2,5682,479

12. Provisions or liabilities and chargesRehabilitation Leaseholdcommitments dilapidations Others Total

000 000 000 000

At 1 January 3,918 1,194 463 5,575Payments during the year (2,077) (432) (176) (2,685) Amounts released during the year (203) (203)Increase in provision 1,617 766 400 2,783

At 31 December 3,458 1,528 484 5,470Amounts expected to be incurred: within one year 3,458 670 484 4,612 beyond one year 858 858

3,458 1,528 484 5,470

The provision or rehabilitation commitments includes amounts committed in the Maldives or construction projects andlivelihood grants.

Leasehold dilapidations relate to properties where the British Red Cross has a legal responsibility as tenant or such costs.


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13. Sta emoluments and trustee expenses2009 2008

Total sta emoluments including casual sta 000 000

Salary costs 62,848 56,940National insurance costs 5,308 4,871Pensions costs 1,258 1,156

Total 69,414 62,967

The number o employees whose emoluments, as denedor taxation purposes (basic pay, vehicle and medical insurance benets),amounted to over 60,000 in the year were as ollows: 2009 2008

60,001 70,000 9 7

70,001 80,000 2 580,001 90,000 8 590,001 100,000 1 2100,001 110,000 1 170,001 180,000 1 1

Six (2008: ve) o the above employees have retirement benets accruing to them under dened benet pension schemes.The total cost o the contributions to these dened benet schemes made by the British Red Cross or these employees was109,000 (2008 71,000).

Thirteen (2008: eleven) o the above employees are members o a dened contribution scheme. The total cost o thecontributions to this scheme made by the British Red Cross or these employees was 76,000 (2008 60,000).

The average number o ull time equivalent (FTE) staemployed by the British Red Cross during the year: 2009 2008

In the UKFundraising 147 148Retail 570 572UK services 1,418 1,329First aid services 357 332International services 65 64Other 257 236

OverseasInternational services 56 74

Total employed by FTE 2,870 2,755

Total employed by headcount 3,398 3,302

The average number o volunteers working or theBritish Red Cross during the year: 2009 2008

In the UKFundraising 3,774 4,061Retail 5,299 4,769UK services 10,906 10,431First aid services 7,897 7,793International services 328 292Other 4 3

Total 28,208 27,349


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13. Sta emoluments and trustee expenses (cont.)

Number o trustees 2009 2008

16 16

Trustees expenses: 000 000

Travelling expenses incurred by trustees and reimbursed by the British Red Cross 13 21Trustees indemnity insurance cover cost 15 15

None o the trustees received any remuneration during the year (2008: nil). Twelve o the trustees claimed expenses during2009 (2008: eleven).

14. Pensions

New British Red Cross sta are entitled to join either the Pensions Trusts Unitised Ethical Plan or the Pensions Trusts FlexibleRetirement Plan. Sta had previously been entitled to join the British Red Cross Pension Fund (UK Oce scheme), ScottishBranch British Red Cross Society Retirement Benets Scheme (Scottish scheme) or the Pensions Trusts Growth Plan.These three schemes are all closed to new entrants.

UK Oce and Scottish dened benet pension schemes

The assets o these pension schemes are held in separate trustee-administered unds. The schemes are subject to triennialvaluations with the last ull valuation being carried out as at 31 December 2007 or the UK Oce scheme and 1 November

2006 or the Scottish scheme. These valuations were updated at 31 December 2008 and 2009 by independent actuaries ona Financial Reporting Standard 17 Retirement Benets (FRS 17) basis.

UK Oce Scottish 2009 2008The amounts charged to statement scheme scheme Total Totalo nancial activities are: 000 000 000 000

Current service cost: 188 88 276 530

Interest cost on scheme liabilities 987 315 1,302 1,432Expected return on assets in the scheme (1,007) (262) (1,269) (1,582)

Net nance charge/ (credit) (20) 53 33 (150)

Actual return less expected return on pension assets 1,237 391 1,628 (4,785)Experience (losses)/gains on liabilities (14) (15) (29) (405)Changes in assumption underlying the present valueo scheme liabilities (3,105) (1,466) (4,571) 5,741

Total actuarial (loss)/gain (1,882) (1,090) (2,972) 551

Less movement in restriction o surplus 1,338 1,338 (840)

Net actuarial loss recognised (544) (1,090) (1,634) (289)

The increase in scheme liabilities due to the changes in assumptions was greater than the actuarial gains associated with thebetter than expected perormance o the scheme assets during 2009. As required by FRS 17 the discount rate or schemeliabilities is based on corporate bond yield rates.

The current service cost will increase as the members o the schemes approach retirement because the schemes are closedto new members.


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14. Pensions (cont.)

UK Oce Scottish 2009 2008The amounts recognised scheme scheme Total Totalin the balance sheet are: 000 000 000 000

Fair value o plan assets 20,594 5,057 25,651 22,568Present value o scheme obligations (19,106) (6,665) (25,771) (20,391)Restriction o scheme surplus (1,488) (1,488) (2,826)

Net (decit)/surplus (1,608) (1,608) (649)

The British Red Cross does not have the agreement o the Pension Fund trustees to recover the potential surplus on the UKOce scheme and thereore no surplus has been recognised in the consolidated nancial statements.

UK Oce scheme Scottish schemeChanges in present value o scheme 2009 2008 2009 2008obligation during the year: 000 000 000 000

At 1 January 15,549 19,140 4,842 5,450

Service cost 188 305 88 125Interest cost 987 1,110 315 322Member contributions 66 68 32 32Benets paid (803) (728) (93) (97)Actuarial loss/(gain) due tochanges in assumptions 3,105 (4,798) 1,466 (943)Actuarial loss/(gain) due to experience 14 452 15 (47)

At 31 December 19,106 15,549 6,665 4,842

UK Oce scheme Scottish schemeChange in value plan assets 2009 2008 2009 2008during the year: 000 000 000 000

At 1 January 18,375 21,126 4,193 4,708

Expected return 1,007 1,254 262 328Employer contributions 712 370 272 292Member contributions 66 68 32 32Benets paid (803) (728) (93) (97)

Actuarial (gain)/loss on plan assets 1,237 (3,715) 391 (1,070)

At 31 Decembe

trustees' report and accounts 2009

Documents