trustees report and accounts 2011
TRANSCRIPT
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Trustees reportand accounts
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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 Ogilv y 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 OBEMrs Elspeth Thomas CBE DL
Vice-pres idents
Mr Anthony Andrews
Ms Angela Rippon OBE
Mrs Maria Shammas MBE
Board o trustees
Chairman
Mr James M. T. Cochrane
Vice-chairmen
Mrs Victoria Peterkin
Mr David Fall CMG
Mrs Stella Cummings
(rom January 2012)
Treasurer
Mr Russell Walls (until September 2011)
Mr David Howell (rom September 2011)
Other trustees
Mrs Sue Brown
Mr Stanley Fitches MBE
Ms Amy Foan
Mr Christopher Hedges
(until December 2011)
Mr Michael Herriot MBE
Mr Steve John
Mr Azal Khan CBE (until October 2011)
Lady Lamport
Dr Lise LlewellynMr Gordon Low
Dr J. Kay Richmond
(until December 2011)
Mr Graham Stegmann CBE
Mr Paul Taylor (rom January 2012)
Mr Keith Shipman (rom January 2012)
Senior management team
Chie executive
Sir Nicholas Young
Managing director o operations
Michael Adamson
Director o internationa l
David Peppiatt
Director o UK servic e development
Margaret Lally
UK director, Scotland, Northern
Ireland and the Isle o Man Territory
Norman McKinley
UK director, Northern Territory
Jean Henderson
UK director, Wales and Western
Territory
Annie Bibbings
UK director, South Eastern Territory
Liz Page
Director o communications
Philip Talbot
Director o undra ising
Mark Astarita
Director o people an d learning
Roger Smith FCIPD
Che de cabinet
Caroline Leighton
Director o fnance an d
business development
Rohan Hewavisenti
Sub-committees
Finance and audit commit tee
Mr David Howell, chairman (rom
September 2011)
Mr Russell Walls, chairman (until
September 2011)
Mr James M. T. Cochrane
Mr Stanley Fitches MBE
Mr Gordon Low
Mrs Liz Hazell
Mr Anthony Potts
Mr Peter Bluck
Remuneration comm ittee
Mr James M. T. Cochrane, chairman
Mr Russell Walls (until September 2011)
Mr David Howell (rom September 2011)
Mrs Victoria Peterkin
Mr David Fall CMG
Ethical review panel
Mrs Stella Cummings
Mr Steve John
Mr Graham Stegmann CBE
External auditors
BDO LLP
Emerald House
East Street
Epsom
Surrey KT17 1HS
Bankers
National Westminster Bank plc
City o London Ofce
PO Box 12258
1 Princes Street
London EC2R 8PA
Investment managers
Lazard Asset Management Ltd
50 Berkeley Street
London W1J 8HA
Legal & General Investment Management
One Coleman Street
London EC2R
BlackRock
33 King William Street
London EC4R 9AS
External legal advisers
Withers
15 Old Bailey
London EC4M 7EG
Young mother Pearl,21, became a volunteerater she and herextended amily receivedsupport rom the RedCross in South Arica
1
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I dont think I couldhave managed. To knowI could always pick up
the phone and talk withSue made the world odierence
Volunteer Sue Whalley helped Ellis
Sheldon and his wie cope with illness
in their remote country home
Contents
Chairman and chie executives statement 4
Our aims 5
Emergency response 6
Health and social care 8
Building resilience: rst aid and humanitarian education 10
Plans or 2012 12
Review o nances 14
Structure and governance 16
Independent auditors report to the trustees o the
British Red Cross Society 19
Accounts or the year ended 31 December 2011 22
Thank you 44
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Chairman and chie executivesstatement
This year has shown us how easy it isor a movement o people to change theworld, or good or ill. Summer riots in theUK, nancial protests around the worldand the all o governments in the MiddleEast and Arica they all relied on aninstantly connected network o peopleacting as one, quickly and powerully.
Part o the Red Cross mission is tomobilise the power o humanity. I chaosand violence are unolding more quickly,
then so must our ability to harness thatpower or good, saving and changinglives in the UK and overseas.
As always, our volunteers and stawere at the sharp end o crisis aroundthe world last year, rom drought andamine in east Arica to severe weatherin Scotland.
We remain realistic about the externalpressures and challenges acing us. Akey ocus or us has been the way thecoalition governments reorms andreviews are aecting our work mostnotably the NHS reorms, cuts in thepublic sector and the Departmentor International Development (DFID)aid reviews.
We have continued to develop ourhealth and social care oer to be moreconsistent, integrated and ocussed onwhat NHS commissioners needs arelikely to be in the uture. This is just oneway we are making sure that our services
are available or people adversely aectedby changes or cuts.
We also obtained unconditionalregistration or our ambulance workrom the Care Quality Commission,which ensures we can continue todeliver a variety o ambulance servicesindependently across England.
In November we transerred our skincamoufage service to a new home atChanging Faces, a charity specialising indisgurement. Over the last 36 years, thisaward-winning service has helped tens o
thousands o people cope with disguringconditions and blemishes and ChangingFaces is well placed to develop the serviceurther, ensuring it continues to have agreat impact on peoples lives. We oerour thanks to the dedicated and skilledvolunteers and sta involved.
The DFID aid reviews, and the worko the devolved administrations, haveshown an increasing ocus on preparingor emergencies in the UK and overseas,
which represents a signicant opportunityor us. Our Ready or Winter campaignto ensure that people are prepared orsevere weather, launched in partnershipwith the Scottish government, is a goodexample o how we are meeting it.
In these nancially challenging times,we must make sure we maximise ourundraising potential to ensure ournancial sustainability. Our compactwith our supporters is that, as ever, wewill keep our costs under control andmake ecient and eective use o allour resources. We, and the more than amillion people we help each year, rely ontheir generosity and trust.
Thank you to all o our supporters,partners, volunteers and sta membersor their vital contributions in 2011 working together, we saved and changedpeoples lives around the world.
James M. T. CochraneChairman o the board o trustees
Sir Nicholas YoungChie executive
Our aims
Our vision is o a world where everyone gets the help theyneed in a crisis.
Our mission is to mobilise the power o humanity so thatindividuals and communities can prepare or, deal with andrecover rom a crisis.
Our plans or 2011 included:
> strengthening our ability to respond
As the UKs leading emergency responsecharity, 3,500 sta and 32,500volunteers pursue these goals bothhere and overseas. Our work includes
emergency response, health and socialcare, and building resilience (includingrst aid and humanitarian education).
We operate both in our own right, andas part o the International Red Crossand Red Crescent Movement, the worldslargest humanitarian network, which hasaround 13 million volunteers across 188countries.
Our corporate strategy, Saving Lives,Changing Lives, sets the ramework orour core activities between 2010-15.
to large emergencies across the whole
o the UK> strengthening the quality o ourservices or reugees and asylumseekers
> increasing the reach and qualityo the International Federationo Red Cross and Red CrescentSocieties disaster response
> establishing our care in thehome activity as the main ocuso our UK health and socialcare work, integrating existingservices with it where appropriate
> building resilience, helping peopleand communities prepare or andwithstand disasters.
redcross.org.uk/movement
redcross.org.uk/strategy
4 British Red Cross Trustees report and accounts 2011 5
I eel Im not only
helping individualpeople, but helpingthe Red Cross andsociety in general
Ater being made redundant, Ed Owen
ound a new lease o lie as a care
in the home volunteer
http://www.redcross.org.uk/movementhttp://redcross.org.uk/strategyhttp://redcross.org.uk/strategyhttp://www.redcross.org.uk/movement -
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Health and social care
We help vulnerable people recover romhealth or social crises, and live withdignity and independence in their homes
We helped 397,000 people in the UK(32,850 in Scotland) this year whenthey could not cope at home alone,many o them ater a stay in hospital oracing the risk o being admitted. Thishelped them retain their independence,
and reduced admissions to hospitalsand residential or nursing care.
For example, our medicalequipment loan service in south-east Wales made it possible or 280patients to be discharged rom hospital,averaging a saving o at least three beddays per patient.
Ninety-one per cent o our healthand social care service users reportedthat their experience was either goodor excellent.
We also began working towards theambitious target o reaching 40 per centmore people in the UK with our healthand social care services by 2014.
As part o this work, we agreed26 new health and social caredevelopments in 2011.
As the governmentprogresses its social carereorm agenda, we submittedwritten evidence to the health selectcommittee, and developed proposalswhich will orm the basis o anadvocacy programme in 2012 to embedthe voluntary sectors role in tacklingthe UKs care crisis.
We work in partnership with othermembers o the International Red Crossand Red Crescent Movement across 16countries to help communities tacklehealth and social crises rom peopleliving with HIV in South Arica toyoung people rebuilding their lives aterconfict in Sierra Leone.
For example, we support aKyrgyzstan Red Crescent programmeto help vulnerable women build their
livelihoods and be aware o theirrights. This work includes an advocacyelement, which contributed to a changein the law this year, whereby marriageregistration is now compulsory.Previously, traditional unregisteredmarriages had let women who hadbeen let by their husbands with nolegal rights or standing.
redcross.org.uk/healthandsocialcare
redcross.org.uk/uksocialcare
31,500vulnerable people in theUK used our transport
service to reach medicalappointments or get other
help with daily lie7,700
volunteers in theUK delivering health
and social care
73,000wheelchairs loanedto people to help themstay independent
Im veryhappy or theRed Crosshelp as theytaught mehow to takecare o the kids,demonstrating how
to give the pills when they rststarted taking their treatment.They supported me until I knew
what to doPatricia lives in South Arica and cares or her our
grandchildren, aged between one and our, all o whom
have either HIV or TB
8 British Red Cross Trustees report and accounts 2011
Now I eel morecondent about gettingout and its so nicenot to be stuck in thehouse all the timeSight-impaired Brenda Hall, rom Llanelli,
was visited or several weeks by a
volunteer to help build her confdence
and remain independent
9
http://redcross.org.uk/healthandsocialcarehttp://redcross.org.uk/uksocialcarehttp://redcross.org.uk/uksocialcarehttp://redcross.org.uk/healthandsocialcare -
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Building resilience: frst aid andhumanitarian education
We make communities more resilient by teachingpeople how to save lives and encouraging them totake action to help others
A survey we ran this year showed thatjust 3 per cent o the UK populationwould be willing to invest a couple ohours in learning frst aid, and 64 percent ear the responsibility o havingfrst aid skills.
So in September 2011 we launchedEveryday First Aid, a ree onlineresource providing the simplest waypossible to learn basic lie-saving skills.Featuring videos, animation and real-lie scenarios, the resource has beenviewed by 199,000 people since itslaunch and supplements our range oace-to-ace training courses.
Ninety per cent o people whohave taken one o our frst aid courseselt more confdent in using frst aid
as a result; and 76 per cent weremore willing to use those skills in anemergency.
We ollowed this up with the launcho our frst mobile app, so that Android,BlackBerry and iPhone users have accessto the same lie-saving inormation onthe move. The app was downloaded127,300 times in 2011 and 185,000 byMarch 2012.
Over the summer, we continuedour Lie. Live It. campaign, aimed atequipping 11 to 16-year-olds with frstaid skills. Through a cinema trailershown beore the fnal Harry Potter
flm, we showed 2.6 million peoplehow to save an unconscious personslie by pushing them on their side andtilting their head back so their airway isclear. We also took the same message toyouth estivals around the country, witha series o silent disco events, reachingaround 5,000 young people.
redcross.org.uk/frstaid
redcross.org.uk/everydayfrstaid
redcross.org.uk/app
ThankgoodnessI hadcompletedthe frst aidcourse, as theknowledge wasstill resh in
my mind. I just stoppedpanicking and started to slap herback. In less than a minute she
was okay againSayma put her training rom our frst aid course or minority
ethnic groups in Edinburgh into practice when her three-
year-old daughter began to choke
I realised Id basicallyhave to save someoneslie, which was a bito a shock early on a
Wednesday morningWhile on her way to a GCSE English
exam, Hannah Niesser used her frst aid
training to give chest compressions to a
collapsed man
6.4million
people learned about frstaid rom us through public
or media campaigns
370,000ople in the UK took one or frst aid courses in 2011,,000o whom were rom
vulnerable groups
20%o our volunteersare aged 18-26
(6,600 volunteersin total)
183,300people learned about
humanitarian issues andinternational humanitarianlaw through our education
programmes
10 British Red Cross Trustees report and accounts 2011 11
http://redcross.org.uk/firstaidhttp://redcross.org.uk/everydayfirstaidhttp://redcross.org.uk/apphttp://redcross.org.uk/apphttp://redcross.org.uk/everydayfirstaidhttp://redcross.org.uk/firstaid -
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Plans or 2012
In 2012 we have committed that:
1. We will ensure we are ully preparedto meet the potential emergency responsechallenges presented by a year omajor activity in the UK, including theOlympics, Paralympics and QueensDiamond Jubilee.
2. We will grow investment ininternational disaster responseand increase the reach and impacto resilience programming withInternational Red Cross and RedCrescent Movement partners, particularlyin Arica and South Asia.
3. We will teach frst aid to 354,000young people and adults, so they aremore able, confdent and willing to helpsomeone in a crisis.
4. We will urther strengthen the qualityo our services or reugees and asylumseekers by achieving OISC accreditationor the majority o our services and seekinstitutional unding to meet some o theneeds arising rom the signifcant budgetcuts o partners in the reugee sector.
5. We will continue to develop ourhealth and social care services so weare on course to reach 40 per cent morebenefciaries by the end o 2014 witha choice o services that increase theirability to live independently or longer.
6. We will urther strengthen our abilityto measure the outcomes and impact oour work in the UK and internationally. Everything happened
so quickly it was reallyscary so it was reallygood to have those
riendly aces aroundVolunteers were on hand to provide
mother-o-two Holly Gunning with emotional
support and practical advice ater her
home was struck by lightning
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Review o fnances
The organisation continued to grow,with total expenditure in 2011 increasing16 per cent rom 199.2 million to230.9 million. This was supported by a4 per cent increase in our total income to213.8 million.
Charitable expenditure
Our charitable expenditure increasedby 20 per cent to 159.2 million in2011 with the increase mostly in our
emergency response activities.Continued support or the
Haitian earthquake programmes, alongwith cash transers made to support theJapanese earthquake response, resultedin our international emergency responseexpenditure increasing 74 per cent to45.4 million. We also invested urtherin our UK emergency response activities,increasing expenditure by 18 per cent to24.5 million.
Expenditure on resilience programmeshas increased 7 per cent to 39 millionwith the principal increase being in ourwork with National Societies in otherparts o the world.
Our health and social care work isprimarily UK-based and our expenditureon this activity decreased slightly to41.3 million. Expenditure on medicalequipment services decreased by 3.5million to 12.7 million due to the losso a major contract or the provision o
community equipment. This was osetby a 3.4 million increase in our care andsupport programmes.
Fundraising
Voluntary income, which includes incomerom emergency appeals, undraising,regular giving, cash donations andlegacies, increased 10 per cent rom119.9 million to 131.5 million.
Our individual supporters donatedmore than ever beore, throughoutchallenging economic times, with income
rom regular giving increasing 21 per centto 41.9 million.
Charitable income
Around 25 per cent o total incomecomes directly rom charitable activitiesincluding rst aid training ees, healthand social care contracts and grants tosupport our international work.
Our charitable income decreased 8 percent to 52.9 million, due to the loss o
a major community equipment contractas well as a drop in grants to support ourinternational work.
Reserves
Our reserves policy is set to ensurethat there is no disruption o BritishRed Cross services in the event o anunoreseen reduction in income orincrease in expenditure.
The policy sets our minimum reereserves level at 15 million. As at 31December, our ree available reservesamounted to 41.4 million (2010: 54.7million). We have changed many o ourinvestments rom equity to bonds toreduce the eects o market volatilityon us. Together with tighter nancialorecasting and reporting, this will enableus to plan or a lower level o reserves,allowing us to spend more helping peoplein need.
This is consistent with our strategy,
Saving Lives, Changing Lives, whichoutlines plans to draw down on our reeavailable reserves by 2015. We plan todraw down 14.8 million o reserves in2012 and a urther 6.2 million in 2013.
Pensions
The British Red Cross operates twodened benet pension schemes, whichare both closed to new members. The netpension surplus reported in our accountsis 0.7 million as at 31 December2011 (2010 surplus: 1.1 million) and
the actuarial loss during the year was1.6 million (2010: 2 million gain).However, our latest actuarial valuationsor unding purposes showed a net decito 4.4 million.
We also have contingent liabilities inrelation to the membership o the PensionTrusts Growth Plan. The British RedCross has sole liability or 6.5 millionand joint liability with the Order o StJohn or estimated 3 million pension
liabilities o the Joint Committee o theOrder o St John o Jerusalem and BritishRed Cross Society.
Investments
As at 31 December 2011, we held xedasset investments o 49.1 million (2010:58 million). Our investments reportednet losses o 0.6 million in 2011.
An investment sub-committee o thenance and audit committee regularlyreviews our investment portolio andperorms an annual review o our
investment policy. Our investmentobjective is to seek yield subject to arequirement o capital preservation.The investment sub-committee hasreviewed, and is satised with, the overallperormance o the investment portolioagainst its benchmarks.
The British Red Cross will not directlyinvest in shares in, or commercial paperissued by, companies with a signicantinterest in the trading o arms or in
the manuacture o tobacco products.However, it is recognised that the ethicalinvestment policy cannot be appliedwhen investing in pooled money marketor investment unds.
1514 British Red Cross Trustees report and accounts 2011
We preparevulnerable groups,including women andchildren, or cyclonesin Char Padma,Bangladesh
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Structure and governance
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 its
governing body, the board o trustees.The legal objects o the British Red
Cross, as laid out in its revised RoyalCharter, are to provide assistance tovictims o armed conficts and to workor the improvement o health, theprevention o disease and the preventionand alleviation o human suering in theUK and throughout the world.
Organisation
The board o trustees comprises nineelected members and up to eight membersco-opted by the board itsel. Newly electedand appointed trustees join the boardat the start o the calendar year in mostinstances.
Their terms o oce last or three years,and they can serve two consecutive three-year terms, ater which they must standdown rom the board or at least one year.A nominations group oversees recruitmento co-opted trustees. The recruitment o
elected trustees is conducted via a nationalelectoral college o eight volunteer councilchairs. The board o trustees raties theresult.
The nance and audit committeeoversees the organisations nancialtransactions. This committee has beengiven specic responsibilities and makesrelevant recommendations to the board.
While the approval o policy is a matteror the board, that body works closelywith the chie executive and his colleagueson the senior management team, which ischarged with the implementation o policy.
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. The BritishRed Cross has eight Overseas Branchesin British Overseas Territories and thesehave also been included in the nancialstatements.
The British Red Cross is a membero the International Red Cross and RedCrescent Movement, with volunteersand sta contributing to a number oinitiatives in both the InternationalFederation o Red Cross and RedCrescent Societies (Federation) and theInternational Committee o the RedCross (ICRC).
Volunteers carry out a wide rangeo activities, including responding toemergencies, rst aid, delivering healthand social care and humanitarianeducation programmes, supportingreugees and asylum seekers, andundraising. Without them, we couldnot carry out this lie-saving and lie-changing work.
Risk management
Achievement o the charitys aims andobjectives entails taking risks. The systemo internal control is designed to manage
risk to a reasonable degree rather thanto eliminate all risk o ailure relating toachieving aims and objectives.
The trustees are responsible orensuring the charity has eective riskmanagement and internal control systemsin place. The board reviews signicantrisks and ensures reasonable measureshave been taken to manage risks.
Senior management has responsibilityor managing resources, monitoringperormance, and establishing andmaintaining eective internal controlsystems. This is supported by clearly
documented management systems,processes and procedures.
The system o internal control and riskmanagement is designed to:
> identiy and prioritise the strategicand operational risks to theachievement o the charitys aims andobjectives;
> evaluate the likelihood o those risks
being realised and their potentialimpact; and
> manage these risks eciently,eectively and economically.
The trustees are satised thatappropriate internal control systemsand risk management processes are inplace. They consider that the ollowingramework provides the charity withadequate measures to reduce the impacto identied risks:
> The nance and audit committeereviews risk and internal controls andreceives regular reports rom seniormanagement.
> The committee approves the annualrisk-based internal audit plan, whichcovers major risks as identied bymanagement and trustees. It receivesinternal audit reports, regular progressreports and risk updates. Internal
audit reports identiy areas orimprovement in the internal control,risk and governance environment.
> Senior management reviews keystrategic and operational risks on aregular basis. They consider progresson mitigating actions, new andemerging risks, and opportunities.
> Management identies, evaluatesand manages risks within their areasrom planning to delivery o service.Progress is reported quarterly via
The British RedCross has more than320 charity shopsacross the UK
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divisional and departmental updates.This is analysed and reported to seniormanagement on a regular basis.
> Board sub-committees andmanagement groups help identiy,evaluate and manage risks relatingto undraising, investments, businesscontinuity, health and saety,remuneration, major inrastructureand IT projects, and operational
needs including health and socialcare, emergency response and theOlympics.
Work in this area is continuing with animprovement plan to urther enhancethe eectiveness o risk managementactivities and ensure consistency in itsapplication across the charity.
The most signicant risks to thecharity include the impact o governmentpolicy including the spending review,undraising, reputation, security andsaety o sta and volunteers, saety obeneciaries, workorce capacity andcapability, management inormation,IT inrastructure and the challenges ooperating major relie programmes.
Trustees responsibilities
The trustees prepare consolidatednancial statements or each nancialyear. These give a true and air view o
the state o the British Red Cross ando the annual results. In preparing thenancial statements, 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 published on theorganisations website (redcross.org.uk) inaccordance with legislation in the UnitedKingdom governing the preparation anddissemination o nancial statements,which may vary rom legislation in otherjurisdictions. The trustees responsibilitiesalso extend to the ongoing integrity o the
nancial statements contained therein.Trustees participated in a range
o development activities during theyear. From visits to British Red Crossareas, services and events, to externalconerences, the British Red Cross ensuresits board members are kept abreast odevelopments in the sector, as well asgiven the opportunity to broaden theirskills and experiences to assist them indischarging their duties eectively.
Public beneft
The board o trustees has given regard tothe legislative and regulatory requirementsor disclosing how its charitable objectives(as set out in our Royal Charter) haveprovided benet to the public. The boardo trustees has complied with the dutyset out in Section 4 o the Charities Act2011, and that set out by the Oceo the Scottish Charity Regulator inthe Charities and Trustee Investment
(Scotland) Act 2005. This report outlineshow our achievements during 2011 havebeneted the public, either directly orindirectly.
On behal o the trustees
James M. T. CochraneChairman o the board o trustees28 March 2012
Independent auditors report tothe trustees o British Red Cross
We have audited the nancial statementso the British Red Cross Society or theyear ended 31 December 2011 whichcomprise the Consolidated Statement oFinancial Activities, the ConsolidatedBalance Sheets, the Consolidated CashFlow Statement and the related notes.The nancial reporting ramework thathas been applied in their preparationis applicable law and United KingdomAccounting Standards (United Kingdom
Generally Accepted Accounting Practice).This report is made solely to
the charitys trustees, as a body, inaccordance with the Charities Act2011 and the Charities and TrusteeInvestment (Scotland) Act 2005. Ouraudit work has been undertaken so thatwe might state to the charitys trusteesthose matters we are required to stateto them in an auditors report and orno other purpose. To the ullest extentpermitted by law, we do not accept orassume responsibility to anyone otherthan the charity and the charitys trusteesas a body, or our audit work, or thisreport, or or the opinions we haveormed.
Respective responsibilities o
trustees and auditor
As explained more ully in the TrusteesResponsibilities Statement (set out onpage 18), the trustees are responsible
or the preparation o the nancialstatements and or being satised thatthey give a true and air view.
We have been appointed as auditorunder section 44(1)(c) o the Charitiesand Trustee Investment (Scotland)Act 2005 and under section 144 othe Charities Act 2011 and report inaccordance with regulations made underthose Acts. Our responsibility is to auditand express an opinion on the nancialstatements in accordance with applicablelaw and International Standards onAuditing (UK and Ireland).
Those standards require us to complywith the Auditing Practices Boards(APBs) Ethical Standards or Auditors.
Scope o the audit o the fnancial
statements
A description o the scope o an audito nancial statements is provided on theAPBs website at www.rc.org.uk/apb/scope/private.cm.
Opinion on fnancial statementsIn our opinion the nancial statements:
> give a true and air view o the stateo the groups and the parent charitysaairs as at 31 December 2011ando the groups incoming resources andapplication o resources or the yearthen ended;
> have been properly prepared inaccordance with United KingdomGenerally Accepted AccountingPractice; and
> have been prepared in accordancewith the Charities Act 2011, theCharities and Trustee Investment(Scotland) Act 2005 and regulations6 and 8 o the Charities Accounts(Scotland) Regulations 2006 (asamended).
Matters on which we are required toreport by exception
We have nothing to report in respecto the ollowing matters where theCharities Act 2011 and the CharitiesAccounts (Scotland) Regulations 2006 (asamended) requires us to report to you i,in our opinion:
> the inormation given in the TrusteesAnnual Report is inconsistent in anymaterial respect with the nancialstatements; or
1918 British Red Cross Trustees report and accounts 2011
http://www.frc.org.uk/apb/scope/private.cfmhttp://www.frc.org.uk/apb/scope/private.cfmhttp://www.frc.org.uk/apb/scope/private.cfmhttp://www.frc.org.uk/apb/scope/private.cfm -
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> proper and sucient accountingrecords have not been kept; or
> the parent charitable companysnancial statements are not inagreement with the accountingrecords or returns; or
> we have not received all theinormation and explanations werequire or our audit.
BDO LLP
Statutory AuditorEpsomUnited KingdomDate: 28 March 2012
BDO LLP is eligible to act as anauditor in terms o section 1212 o theCompanies Act 2006.
BDO LLP is a limited liability partnershipregistered in England and Wales (withregistered number OC305127).
Guei, 24, was oneo thousands o reugeesrom confict in the IvoryCoast who the Red Crosshelped with water andother essentials whenthey reached Liberia
20 British Red Cross Trustees report and accounts 2011 21
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7m
Emergency
respon
se
andreco
very
Accounts or the year ended31 December 2011
Summary o income and expenditureor the year ended 31 December 2011
Income 213.8m
Expenditure 230.9m
Consolidated statement o fnancial activitiesor the year ended 31 December 2011
26.5
mTrading
activities
15.5
mResilienc
e
21.6
mHealtha
ndsocialc
are
8.8m
Supportin
gth
e
Movem
ent
2.9m
Oth
erand
investm
ent
23.6m
Tradingactivities
45.5m
Cost
ofvolunta
ry
income
69.9m
Emergencyrespo
nse
an
dreco
very
39mR
esilie
nce
41.3m
Healthandsocialc
are
9mSu
pportin
gth
eMovem
ent
2.6mG
overnancecosts
NotesUnrestricted
mRestricted
m
2011Total
m
2010Total
m
Incoming resources
Incoming resources rom generated unds
Voluntary income 2 94.4 37.1 131.5 119.9
Trading activities 26.5 - 26.5 24.8
Investment income 0.3 - 0.3 0.6
Total incoming resources rom generated unds 121.2 37.1 158.3 145.3
Incoming resources rom charitable activities
Emergency response and recovery 3.3 3.7 7.0 9.3
Resilience 14.7 0.8 15.5 15.3
Health and social care 21.0 0.6 21.6 25.1
Supporting the Movement 0.4 8.4 8.8 7.9
Total incoming resources rom charitable activities 3 39.4 13.5 52.9 57.6
Other incoming resources
Miscellaneous income 0.6 - 0.6 1.1
Net gains on disposal o tangible xed assets 2.0 - 2.0 1.7
Total incoming resources 163.2 50.6 213.8 205.7
Resources expended
Costs o generating unds
Voluntary income 44.6 0.9 45.5 40.3
Trading activities 23.6 - 23.6 23.5
Total resources expended on generating unds 68.2 0.9 69.1 63.8
Costs o charitable activities
Emergency response and recovery 28.2 41.7 69.9 46.8
Resilience 31.6 7.4 39.0 36.3
Health and social care 39.7 1.6 41.3 41.4
Supporting the Movement 2.0 7.0 9.0 8.3
Total resources expended on charitable activities 101.5 57.7 159.2 132.8
Governance costs 2.6 - 2.6 2.6
Total resources expended 4 172.3 58.6 230.9 199.2
Net (outgoing) / incoming resources beore transers (9.1) (8.0) (17.1) 6.5
Transers between unds 7 - - - -
Net (outgoing) / incoming resources beore recognised
gains and losses (9.1) (8.0) (17.1) 6.5
Losses on current asset investments (0.3) - (0.3) (0.2)
(Losses) / gains on xed asset investments 9 (0.9) 0.3 (0.6) 1.7
Actuarial (losses) / gains on dened benet pension schemes 14 (1.6) - (1.6) 2.0
Net movement in unds (11.9) (7.7) (19.6) 10.0
Total unds - 1 January 7 110.4 45.4 155.8 145.8
Total unds - 31 December 7 98.5 37.7 136.2 155.8
All the activities relate to continuing operations.
131
.5mVolu
ntary
income
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Consolidated balance sheetas at 31 December 2011
Notes2011
m2010
m
Fixed assets
Tangible xed assets 8 64.4 63.8
Investments 9 49.1 58.0
113.5 121.8
Current assets
Stocks 4.2 3.3
Debtors 10 30.9 29.0
Investments 9 6.6 11.2
Cash at bank and in hand 4.0 10.4
45.7 53.9
Current liabilities
Creditors: amounts alling due within one year 11 (20.0) (17.4)
Net current assets 25.7 36.5
Total assets less current liabilities 139.2 158.3
Creditors: amounts alling due in more than one year (0.3) (0.3)
Provision or liabilities and charges 12 (3.4) (3.3)
Net assets beore pension scheme surplus 135.5 154.7
Dened benet pension scheme surplus 14 0.7 1.1
Net assets 7 136.2 155.8
Funds:
Restricted unds 7 37.7 45.4
Unrestricted unds tangible xed assets 56.4 54.6
Dened benet pension scheme und 0.7 1.1
Free available reserves 41.4 54.7
Unrestricted unds 7 98.5 110.4
Total unds 136.2 155.8
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 Cochrane David HowellChairman, board o trustees Chairman, nance and audit committee
28 March 2012 28 March 2012
Consolidated cash ow statementor the year ended 31 December 2011
Notes2011
m2010
m
Net cash (outow) / inow rom operating activities (see below) (13.7) 8.4
Capital expenditure and nancial investment 16 3.0 (19.4)
(10.7) (11.0)
Decrease in current asset investments 4.3 9.7
Decrease in cash 17 (6.4) (1.3)
Reconciliation o net incoming resources to net cash outow rom operating activities
Net (outgoing) / incoming resources (17.1) 6.5
Depreciation charge 6.7 6.5
Net gains on disposal o tangible xed assets (2.0) (1.7)
Increase in stocks (0.9) (0.4)
Increase in debtors (1.9) (1.5)
Increase in creditors 2.6 2.0
Increase / (decrease) in provisions or liabilities and charges 0.1 (2.2)
Net charges or dened benet pension scheme (1.2) (0.8)
Net cash (outow) / inow rom operating activities (13.7) 8.4
Reconciliation o net unds to movement in short-term unds less borrowing
Decrease in cash (6.4) (1.3)
Decrease in current asset investments (4.3) (9.7)
(10.7) (11.0)
Losses on current asset investments (0.3) (0.2)
(11.0) (11.2)
Net short-term unds less borrowing at 1 January 21.3 32.5
Net short-term unds less borrowing at 31 December 17 10.3 21.3
The accompanying notes orm an integral part o these consolidated nancial statements.
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Notes to the consolidated fnancial statementsor the year ended 31 December 2011
1. Accounting policies
(a) Scope and basis o the fnancial statements
The consolidated nancial statements have been preparedunder the historical cost convention, as modied by therevaluation o investments at market value, and are inaccordance with Accounting and Reporting by Charities:Statement o Recommended Practice (Revised 2005) (theSORP), applicable accounting standards in the UnitedKingdom and the reporting requirements o the CharitiesAct 2011.
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 to
31 December. Separate statements o nancial activitiesand 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 Crosshas operational responsibility. The results and net assets oRed Cross operations in eight British Overseas Brancheshave been included in the nancial statements.
(b) Fund accounting
General unrestricted unds are available or use at thediscretion o the trustees in urtherance o the generalcharitable objectives. A pension reserve is included withinunrestricted unds to refect the pension surplus.
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 Crosshas entitlement to the unds, the amount can be quantiedand there is certainty o receipt. Where income is receivedin advance o providing goods and/or services, it isdeerred until the British Red Cross becomes entitled tothat income.
Unless there is evidence o uncertainty o receipt, residuarylegacies are recognised rom the date o probate where areliable estimate o income can be made. Income rom willor reversionary trusts is not recognised until the lie interesthas passed away. Income rom pecuniary legacies isrecognised upon notication.
Disasters Emergency Committee (DEC) appealincome is recognised to the extent that resources havebeen committed on programmes unded through theDEC appeals.
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 allocationo cost
All expenditure is accounted or on an accruals basis.
Direct costs are those specically related to producingthe output o an activity, or example the costs incurred indirect contact with beneciaries.
Support costs are those which provide indirect support to
ront-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 driversor that cost category such as sta head count, foor spaceand expenditure.
Governance costs relate to the direct running o thecharity, allowing the charity to operate and generate theinormation required or public accountability. They includethe costs o subscriptions related to membership o theInternational Red Cross and Red Crescent Movement,as well as the costs o trustee meetings and internal andexternal audits.
(e) Tangible fxed assets and depreciation
All tangible xed assets costing more than 1,000are capitalised and included at cost, including anyincidental expenses o acquisition and irrecoverable VAT.Depreciation is provided on a straight-line basis over theiruseul economic lives as ollows:
Freehold properties 50 years
Leasehold properties
> Shop prem ises the sho rter o the term o thelease and ve years
> Other premises the shorter o the term o the
lease and 50 yearsFreehold premisesimprovements
ten years
Leasehold premisesimprovements
the shorter o the term o thelease and ten years
Ambulances seven years
Other vehicles ve years
Equipment and urniture ve years
Computer equipment andsotware
between one and three years
Freehold land nil
Assets in course oconstruction
nil
() 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 sheetdate. Scheme liabilities are measured on an actuarial basisat the balance sheet date using the projected unit methodand discounted at a rate equivalent to the current rate oreturn on a high-quality corporate bond o equivalent termto the scheme liabilities. The change in value o assets andliabilities arising rom asset valuation, changes in benets,actuarial assumptions, or change in the level o decit
attributable to members is recognised in the consolidatedstatement o nancial activities within actuarial gains/losseson dened benet pension schemes. The resulting denedbenet asset or liability is presented separately on the aceo the balance sheet. The British Red Cross recognisesassets or its dened benet pension schemes to theextent that they are considered recoverable with reerenceto expected uture current service costs or active schememembers.
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 balancesheet 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.
(k) Operating leases
Rentals under operating leases are charged on a straight-line basis over the lease terms, even i the payments arenot made on such a basis.
Benets received and receivable as an incentive to signan operating lease are, similarly, spread on a straight-linebasis over the lease term, except where the period tothe review date on which the rent is rst expected to beadjusted to the prevailing market rate is shorter than the ulllease term, in which case the shorter period is used.
(l) Foreign currencies
The British Red Cross uses orward exchange contracts
to hedge some o its known oreign exchange exposure.Transactions in oreign currencies are recorded at therate o exchange prevailing at the date o the transaction,except where a orward contract is in place, in which casethe rate specied in the contract is used.
Monetary assets and liabilities are translated into sterling atthe exchange rate ruling on the balance sheet date, exceptwhere a orward contract is in place, in which case therelevant asset/liability is translated at the rate contained inthe contract.
Foreign exchange gains are recognised as other incomeand oreign exchange losses are recognised in theconsolidated statement o nancial activities within therelevant charitable activity expenditure or the period inwhich they are incurred.
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Notes to the consolidated fnancial statementsor the year ended 31 December 2011
2. Voluntary income
Unrestrictedm
Restrictedm
2011Total
Unrestrictedm
Restrictedm
2010Total
Regular giving 41.9 - 41.9 34.6 - 34.6
Pu bli c don ati ons, appeals and undrai sin g 19.0 26.0 45.0 17.6 20.7 38.3
Service donations 2.4 0.1 2.5 2.4 0.1 2.5
Git aid 12.3 1.8 14.1 10.5 1.8 12.3
Legacies 18.8 0.9 19.7 21.5 0.6 22.1
Disasters Emergency Committee appeals - 8.3 8.3 - 8.4 8.4
Grants - - - - 1.7 1.7
Total 94.4 37.1 131.5 86.6 33.3 119.9
Legacy income is not recognised until the British Red Cross has entitlement to the unds, the amount can be quantied
and there is certainty o receipt. The estimated value o legacies, which have been notied but not recognised at 31December 2011, was 7.4 million (2010: 9.2 million) o which 6.4 million (2010: 6.6 million) are assets bequeathed tothe British Red Cross, but subject to lie tenancy.
Disasters Emergency Committee (DEC) appeal income is recognised to the extent that resources have been committedon programmes unded through the DEC appeals. Subject to our agreed allocation, the value o DEC appeal income notdrawn down or accrued or at 31 December 2011 was 2.6 million (2010: 5.5million).
3. Incoming resources rom charitable activities
Grantsm
Otherm
2011Total
mGrants
mOther
m
2010Total
m
Emergency response and recovery
UK 0.8 3.1 3.9 0.2 2.8 3.0
International 3.1 - 3.1 6.1 0.2 6.3
3.9 3.1 7.0 6.3 3.0 9.3
Resilience
UK 0.2 14.7 14.9 0.6 14.0 14.6
International 0.6 - 0.6 0.5 0.2 0.7
0.8 14.7 15.5 1.1 14.2 15.3
Health and social care
Medical equipment services 0.3 6.6 6.9 0.3 10.7 11.0Care and support programmes 3.5 11.2 14.7 3.3 10.8 14.1
3.8 17.8 21.6 3.6 21.5 25.1
Supporting the Movement 7.2 1.6 8.8 6.2 1.7 7.9
Total 15.7 37.2 52.9 17.2 40.4 57.6
Supporting the Movement grant income is mainly rom the Department or International Development (DFID). 1.2 million(2010: 1.1 million) was received as part o our Partnership Programme Agreement (replacing the Strategic FrameworkAgreement), which provides core unding or our international work to strengthen urther the eectiveness o theInternational Red Cross and Red Crescent Movement as a key pillar o the international humanitarian system. 6.0 million(2010: 5.1 million) was received as part o our Institutional Strategy agreement with the International Federation o RedCross and Red Crescent Societies (IFRC), which provides unding or their programmes and operations.
The charity v has supported our youth volunteering, Future Jobs Fund and National Citizen Service activities. The incomeor 2011 is 187,000 (2010: 90,000).
4. Resources expended
Directcosts
m
Supportcosts
m
2011Total
m
2010Total
m
Costs o generating unds
Voluntary income 44.3 1.2 45.5 40.3
Trading activities 22.9 0.7 23.6 23.5
67.2 1.9 69.1 63.8
Charitable activities
Emergency response and recovery
UK 23.1 1.4 24.5 20.7
International 44.6 0.8 45.4 26.1
67.7 2.2 69.9 46.8
Resilience
UK 25.8 2.1 27.9 25.2
International 10.8 0.3 11.1 11.1
36.6 2.4 39.0 36.3
Health and social care
Medical equipment services 11.8 0.9 12.7 16.2
Care and support programmes 25.9 2.7 28.6 25.2
37.7 3.6 41.3 41.4
Supporting the Movement 8.9 0.1 9.0 8.3
150.9 8.3 159.2 132.8
Governance costs
Subscriptions to Federation 1.9 - 1.9 1.6
Sta 0.3 - 0.3 0.6
Fees to auditors or audit o nancial statements 0.1 - 0.1 0.1
Fees to auditors or other services - - - -
Other 0.2 0.1 0.3 0.3
2.5 0.1 2.6 2.6
Total 220.6 10.3 230.9 199.2
The basis o allocation o support costs is described in note 1(d) and urther analysis is provided in note 5.
Our total resources expended includes irrecoverable VAT o 2.9m (2010: 2.1m).
Included under 2011 direct costs are grants to the International Federation o Red Cross and Red Crescent Societies(IFRC) and International Committee o the Red Cross (ICRC) o 20.1 million (2010: 19.5 million) and grants to otherNational Societies o 22.2 million (2010: 6.6 million).
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Notes to the consolidated fnancial statementsor the year ended 31 December 2011
5. Support costs by activity
Cost ogenerating
undsm
Emergencyresponse
andrecovery
mResilience
m
Health andsocial care
m
Supportingthe
Movementm
Governancem
2011Totalm
2010Total
m
Finance 0.8 0.9 0.5 0.4 - - 2.6 2.4
Human resources and central
acilities 0.6 0.6 0.9 1.6 - - 3.7 3.6
Management inormation
services 0.4 0.6 0.9 1.5 0.1 0.1 3.6 3.4
Central management 0.1 0.1 0.1 0.1 - - 0.4 0.4
Total 1.9 2.2 2.4 3.6 0.1 0.1 10.3 9.8
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, engages inthe sale o cards and gits as well as corporate sponsorship in aid o the British Red Cross. The turnover and expenditureincluded within trading activities are:
2011m
2010m
Turnover 1.4 1.4
Expenditure (0.9) (0.9)
Net income donated to British Red Cross 0.5 0.5
The assets and liabilities o Britcross Limited consolidated within the balance sheet are: 2011m
2010m
Current assets 0.8 0.7
Current liabilities (0.8) (0.7)
Net assets - -
7. Funds
Balance1 January
2011m
Incomem
Expenditurem
Netinvestment
gain /(losses)
m
Actuariallosses on
defnedbeneft
pensionm
Transersm
Balance 31December
2011m
Total unrestricted unds 110.4 163.2 (172.3) (1.2) (1.6) - 98.5
Total UK restricted unds 17.1 3.8 (6.8) 0.1 - - 14.2
Haiti earthquake 9.0 4.9 (7.2) - - - 6.7
Japan - 14.4 (14.2) - - - 0.2
Other international restricted unds 13.3 26.9 (27.4) 0.2 - (0.5) 12.5
Total international restricted unds 22.3 46.2 (48.8) 0.2 - (0.5) 19.4
Disaster Fund 6.0 0.6 (3.0) - - 0.5 4.1
Total restricted unds 45.4 50.6 (58.6) 0.3 - - 37.7
Total unds 155.8 213.8 (230.9) (0.9) (1.6) - 136.2
Restricted unds
Expenditure plans have been agreed or all material restricted unds. Funds are held in appropriate asset categories inaccordance with planned usage.
UK restricted undsUK restricted unds include:
> 7 million o properties and other tangible xed assets held or restricted purposes> a variety o local, national and European unding sources to deliver projects over the next 2-3 years> legacies with a geographical and/or service restriction.
The balance o UK restricted unds is held or the provision o locally agreed services.
International restricted undsSignicant programmes o work are planned or the disbursement o international restricted und balances as at
31 December 2011. Other international restricted unds include:
> 2.4 million o stock or international programmes> 1.5 million represented by net assets o the Overseas Branches.
Disaster FundThe Disaster Fund allows us to prepare or and respond to humanitarian disasters abroad and in the UK. We undraisespecically 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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Notes to the consolidated fnancial statementsor the year ended 31 December 2011
8. Tangible fxed assets
Cost
Freeholdproperty
m
Leaseholdproperty
m
Vehicles,equipment
and urniturem
Assets in thecourse o
constructionm
Totalm
At 1 January 2011 45.9 34.2 41.2 0.6 121.9
Completions 0.1 0.1 0.3 (0.5) -
Additions 2.5 - 3.5 2.0 8.0
Disposals (0.5) (0.5) (1.1) - (2.1)
At 31 December 2011 48.0 33.8 43.9 2.1 127.8
Accumulated depreciation
At 1 January 2011 13.1 11.6 33.4 - 58.1Charge 1.8 1.1 3.8 - 6.7
Disposals (0.2) (0.2) (1.0) - (1.4)
At 31 December 2011 14.7 12.5 36.2 - 63.4
Net book value
At 31 December 2011 33.3 21.3 7.7 2.1 64.4
At 31 December 2010 32.8 22.6 7.8 0.6 63.8
9. Investments
TotalmFixed assets investments
Market value - 1 January 2011 58.0
Additions at cost 3.0
Disposals at market value (11.3)
Net investment losses in the year (0.6)
Market value - 31 December 2011 49.1
Cost - 31 December 2011 47.1
Market value2011m
Per cent o2011portolio
Market value2010m
Per cent o2010portolioThe portolio consists o the ollowing:
UK equities 7.8 16% 86.0 15%
Overseas equities 5.9 12% 6.3 11%
UK xed income 35.4 72% 43.1 74%
49.1 58.0
The ollowing investments represented more than 5per cent o the value o the portolio at 31 December 2011
Numbero units
Marketvalue
m
Per cent oportolio
Lazard Thematic Global Institutional Share Class 67,350 5.9 12%
Legal & General CAF UK Equitrack 12,988,700 7.5 15%
Black Rock Ultra Short Bond Fund 287,196 35.4 72%
Current asset investments2011
m2010
m
Royal Bank o Scotland Global Treasury Funds plc 6.2 4.1
BlackRock - Institutional Sterling Liquidity Fund - 1.0
6.2 5.1
Deposits 0.4 5.4
Investment property in the UK - 0.7
Total 6.6 11.2
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Notes to the consolidated fnancial statementsor the year ended 31 December 2011
10. Debtors
2011m
2010m
Trade debtors 4.6 6.5
Accrued income 6.9 4.7
Other debtors 1.0 0.4
Prepayments 3.5 3.3
Tax recoverable 4.4 4.0
Legacies receivable 10.5 10.1
Total 30.9 29.0
All amounts shown under debtors all due or payment within one year.
11. Creditors: amounts alling due within one year
2011m
2010m
Trade creditors 3.3 2.1
Accruals 12.0 10.9
Other creditors 1.2 1.1
Deerred income 1.9 2.0
Taxes and social security costs 1.6 1.3
Total 20.0 17.4
Movements in deerred income during the year were as ollows:2011
m2010
m
At 1 January 2.0 2.6
Income recognised during the year (2.0) (2.6)
Income deerred during the year 1.9 2.0
At 31 December 1.9 2.0
12. Provisions or liabilities and charges
Rehabilitationcommitments
m
Leaseholddilapidations
mTotal
m
At 1 January 2011 1.2 2.1 3.3
Payments during the year (1.2) (1.5) (2.7)
Increase in provision 1.1 1.7 2.8
At 31 December 2011 1.1 2.3 3.4
Amounts expected to be incurred:
- within one year 1.1 1.3 2.4
- beyond one year - 1.0 1.0
1.1 2.3 3.4
The provision or rehabilitation commitments as at 31 December 2011 includes amounts committed in Haiti orlivelihood grants.
Leasehold dilapidations relate to properties where the British Red Cross has a legal responsibility as tenant or such costs.
13. Sta emoluments and trustee expenses
Total sta emoluments (including casual sta) or the year were as ollows:2011
m2010
m
Salary costs 68.7 63.0
National insurance costs 5.9 5.4
Pensions costs 1.0 1.2
75.6 69.6
The number o employees whose emoluments, as defned or taxation purposes(basic pay, vehicle and medical insurance benefts), amounted to over 60,000 inthe year were as ollows: 2011 2010
60,001 - 70,000 6 870,001 - 80,000 6 6
80,001 - 90,000 3 5
90,001 - 100,000 5 2
100,001 - 110,000 1 1
110,001 - 120,000 2 1
170,001 - 180,000 - 1
180,001 - 190,000 1 -
Five (2010: ve) o the above employees have retirement benets accruing to them under dened benet pensionschemes. The total cost o the contributions to these dened benet schemes made by the British Red Cross or theseemployees was 106,000 (2010: 94,000).
Thirteen (2010: ourteen) 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 81,000 (2010: 61,000).
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Notes to the consolidated fnancial statementsor the year ended 31 December 2011
13. Sta emoluments and trustee expenses (continued)
The average number o ull-time equivalent sta employed by the British Red Crossduring the year was as ollows: 2011 2010
In the UK
Fundraising 171 147
Retail 547 544
UK services 1,475 1,417
First aid services 405 379
International services 72 66
Other 280 249
Overseas
International services 65 54
Total employed by FTE 3,015 2,856
Total employed by headcount 3,547 3,364
The average number o volunteers working or the British Red Cross during the yearwas as ollows: 2011 2010
In the UK
Fundraising 3,813 3,758
Retail 6,456 6,020
UK services 13,571 12,382
First aid services 8,242 8,315
International services 418 409
Total 32,500 30,884
Trustees expenses:2011000
2010000
Expenses incurred by trustees and reimbursed by theBritish Red Cross 15 12
Expenses incurred by the British Red Cross on behal o trustees 26 16
Trustees indemnity insurance cover cost 14 15
2011 2010
Number o trustees receiving expenses 18 15
Trustees expenses are or travel and accommodation costs.
None o the trustees received any remuneration during the year (2010: nil).
14. Pensions
New British Red Cross sta are entitled to join either the Pensions Trusts Unitised Ethical Plan or the Pensions TrustsFlexible Retirement Plan. Sta had previously been entitled to join the British Red Cross Pension Fund (UK Ocescheme), Scottish Branch British Red Cross Society Retirement Benets Scheme (Scottish scheme) or the PensionsTrusts Growth Plan. These three schemes are all closed to new entrants.
UK Ofce and Scottish defned beneft pension schemes
The assets o these pension schemes are held in separate trustee-administered unds. The schemes are subject totriennial valuations with the last ull valuation being carried out as at 31 December 2010 or the UK Oce scheme and 1January 2009 or the Scottish scheme. These valuations were updated at 31 December 2010 and 2011 by independentactuaries on a Financial Reporting Standard 17 Retirement Benefts (FRS 17) basis.
The amounts charged to statement o fnancial
activities are:
UK Ofce
schemem
Scottish
schemem
2011
Totalm
2010
Totalm
Current service cost 0.3 0.1 0.4 0.3
Interest cost on scheme liabilities 1.1 0.3 1.4 1.5
Expected return on plan assets (1.4) (0.4) (1.8) (1.7)
Net fnance credit (0.3) (0.1) (0.4) (0.2)
Actual return less expected return on pension assets 0.7 - 0.7 1.3
Experience (losses) / gains on liabilities 0.4 (0.5) (0.1) 0.7
Actuarial gain arising rom government changes to statutorypension increases - - - 1.6
Other changes in assumption underlying the present value oscheme liabilities (1.1) (0.5) (1.6) (1.6)
Total actuarial (loss) / gain - (1.0) (1.0) 2.0
Less movement in restriction o surplus (0.6) - (0.6) -
Net actuarial (loss) / gain recognised (0.6) (1.0) (1.6) 2.0
The current service cost will increase as the members o the schemes approach retirement because the schemes areclosed to new members.
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Notes to the consolidated fnancial statementsor the year ended 31 December 2011
14. Pensions (continued)
The amounts recognised in the balance sheet are: UK Ofcescheme
m
Scottishscheme
m
2011Total
m
2010Total
m
Fair value o plan assets 25.0 6.5 31.5 28.8
Present value o scheme obligations (21.1) (7.6) (28.7) (26.2)
Restriction o scheme surplus (2.1) - (2.1) (1.5)
Net surplus / (defcit) 1.8 (1.1) 0.7 1.1
The British Red Cross has recognised the UK Oce scheme surplus to the extent that it is considered recoverablethrough uture service cost o the remaining members.
Changes in present value o scheme obligation
during the year:
UK Ofce scheme Scottish scheme
2011m
2010m
2011m
2010m
At 1 January 19.8 19.1 6.4 6.7
Service cost 0.3 0.2 0.1 0.1
Interest cost 1.1 1.2 0.3 0.4
Member contributions - 0.1 - -
Benets paid (0.8) (0.8) (0.2) (0.1)
Actuarial gain arising rom government changes to statutory
pension increases - (1.1) - (0.5)
Actuarial losses due to changes in other assumptions 1.1 1.1 0.5 0.5
Actuarial (gain) / loss due to experience (0.4) - 0.5 (0.7)
At 31 December 21.1 19.8 7.6 6.4
Change in th e value o plan assets during the year: UK Ofce scheme S cottish scheme
2011m
2010m
2011m
2010m
At 1 January 23.0 20.6 5.8 5.1
Expected return 1.4 1.3 0.4 0.4
Employer contributions 0.7 0.7 0.5 0.2
Member contributions - 0.1 - -
Benets paid (0.8) (0.8) (0.2) (0.1)
Actuarial gain on plan assets 0.7 1.1 - 0.2
At 31 December 25.0 23.0 6.5 5.8
The British Red Cross expects to make employer contributions in 2012 o 255,000 or the UK Oce scheme and511,000 or the Scottish scheme.
The major categories o plan assets as a percentage ototal plan assets are:
UK Ofce scheme Scottish scheme
2011 2010 2011 2010
Equities 44% 52% 57% 68%
Bonds 55% 47% 42% 31%
Cash 1% 1% 1% 1%
100% 100% 100% 100%
14. Pensions (continued)
Principal actuarial assumptions at the balance sheet date were:2011% pa
2010% pa
Discount rate 4.7 5.4
Retail price infation (RPI) 3.3 3.8
Consumer price infation (CPI) 2.6 3.1
Salary increases 2.6 4.8
UK Oce scheme pension increases
Capped at 5.0% 2.6 3.1
Capped at 3.0% 2.6 2.7
Capped at 2.5% 2.2 2.4
Scottish scheme pension increases
Pre-2005 increases 3.3 3.1
Post-2005 increases 2.2 2.4
Expected return on equities 6.5 7.7
Expected return on bonds 3.0 4.2
Expected return on cash 1.1 0.8
Mortality asumptions adopted at the year end imply the ollowinglie expectancy at 65: Years Years
Pensioners: male 22.5 21.6
Pensioners: emale 25.0 24.0
Non-pensioners: male 24.8 23.5
Non-pensioners: emale 27.4 25.9
History or current and previous periods: UK Ofce scheme
2011m
2010m
2009m
2008m
2007m
Present value o scheme obligations (21.1) (19.8) (19.1) (15.5) (19.1)
Fair value o plan assets 25.0 23.0 20.6 18.3 21.1
Surplus 3.9 3.2 1.5 2.8 2.0
Restriction o surplus (2.1) (1.5) (1.5) (2.8) (2.0)
Reported surplus 1.8 1.7 - - -
Experience gains / (losses)
on liabilities 0.4 - - (0.5) (0.1)
on assets 0.7 1.1 1.2 (3.7) 0.1
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Notes to the consolidated fnancial statementsor the year ended 31 December 2011
History or current and previous periods: Scottish scheme
2011m
2010m
2009m
2008m
2007m
Present value o scheme obligations (7.6) (6.4) (6.7) (4.8) (5.5)
Fair value o plan assets 6.5 5.8 5.1 4.2 4.7
Defcit (1.1) (0.6) (1.6) (0.6) (0.8)
Experience gains / (losses)
on liabilities (0.5) 0.7 - - 0.2
on assets - 0.2 0.4 (1.1) (0.3)
Other schemes
The British Red Cross also contributes to the Pensions Trust schemes and other contribution schemes or certainemployees. In 2011 the total cost o these contributions was 973,000 (2010: 909,000). The Pensions Trust schemeswhich are oered to all sta are the Unitised Ethical Plan or the Flexible Retirement Plan. Both o these schemes aredened contribution schemes.
Sta were able to join the Pensions Trusts Growth Plan until April 2007. The Pensions Trusts Growth Plan is a multi-employer dened benet pension plan. The assets o the scheme are co-mingled or investment purposes and as a resultit is not possible to break down scheme assets by participating employer and it is not possible to analyse the ongoingunding decit by individual employer. Accordingly, due to the nature o the plan, the accounting charge or the yearunder FRS 17 represents only the employer contribution payable. There is a contingent liability in the event that the BritishRed Cross were to withdraw its membership o the Pensions Trusts Growth Plan. The Pensions Trusts Growth Plansactuaries valued the withdrawal liability at 4.6 million as at 30 September 2009. This valuation has been rolled orward,assuming actuarial assumptions and membership are consistent, to 31 December 2011 resulting in an estimated 6.5million contingent liability (2010: 4.3 million).
The British Red Cross and the Order o St John are jointly liable or the pension liabilities o the Joint Committee o theOrder o St John o Jerusalem and British Red Cross Society (Joint Committee). The Joint Committee is a separatecharity (charity no 225753) or the purposes o charity regulation. The Pensions Trusts Growth Plans actuaries valuedthe withdrawal liability at 2 million as at 30 September 2009. This valuation has been rolled orward, assuming actuarialassumptions and membership are consistent, to 31 December 2011 resulting in an estimated 3 million contingentliability (2010: 1.9 million). The Joint Committee holds assets o 1.1 million (2010: 1.1 million) which are held solely orsettling the pension liability.
15. Obligations under operating leases
Propertym
Otherm
2011Total
m
2010Total
m
The amount payable within the next 12 months on leases expiring:
Within one year 0.2 0.2 0.4 1.7
In two to ve years 1.8 1.2 3.0 2.7
Ater ve years 3.3 - 3.3 2.8
Total 5.3 1.4 6.7 7.2
16. Gross cash ows
Capital expenditure and fnancial investment2011
m2010
m
Sales o xed asset investments 11.3 26.3
Purchase o xed asset investments (3.0) (44.8)
Sale o tangible xed assets 2.7 3.2
Purchase o tangible xed assets (8.0) (4.1)
Net cash inow / (outow) 3.0 (19.4)
17. Analysis o changes in net short-term unds less borrowingAt
1 January2011
mCash ow
m
Investmentlosses
m
At31 December
2011m
Cash at bank and in hand 10.4 (6.4) - 4.0
Loan due ater one year (0.3) - - (0.3)
Current asset investments 11.2 (4.3) (0.3) 6.6
Total 21.3 (10.7) (0.3) 10.3
18. Related parties
Mr Christopher Hedges was a trustee until December 2011. Mr Christopher Hedges partner was an employee o theBritish Red Cross during this period, with remuneration o 22,749 (2010: 22,585). Mr Christopher Hedges partner wasan employee prior to Mr Christopher Hedges election as trustee.
Mr Stanley Fitches is a trustee and a pensioner member o the British Red Crosss closed dened benet pension schemeand received payments in the year o 31,987 (2010: 31,824).
19. Capital commitments
2011
m
2010
m
Capital commitments 0.7 1.8
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Notes to the consolidated fnancial statementsor the year ended 31 December 2011
20. Programme commitments
The British Red Cross regularly pledges support to programmes led by the International Federation o Red Cross and RedCrescent Societies (IFRC), International Committee o the Red Cross (ICRC) or other National Societies. Full payment othe pledges is contingent on the outcome o British Red Cross reviews o the programmes. The British Red Cross hadoutstanding pledges to the ollowing programmes:
2011m
2010m
South Arica Red Cross Society KwaZulu-Natal integrated HIV & TBprogramme 2011-16 (Phase II) 4.0 0.9
Uganda Red Cross Society reducing community risk and strengthening disasterresponse programme 2.5 -
Lesotho Red Cross Society integrated HIV and ood security programme (2010-2014) 0.7 -
Red Crescent Society o Kyrgyzstan women, HIV and organisational developmentprogrammes 0.8 -
IFRC-led Sichuan (China) earthquake programme - 0.7
Other programmes 1.2 -
Total 9.2 1.6
21. Analysis o net assets between unds
Unrestrictedm
Restrictedm
2011Total
m
2010Total
m
Tangible xed assets 56.4 8.0 64.4 63.8
Fixed asset investments 22.0 27.1 49.1 58.0
Net current assets 21.7 4.0 25.7 36.5
Creditors: amounts alling due in more than one year - (0.3) (0.3) (0.3)
Provisions or liabilities and charges (2.3) (1.1) (3.4) (3.3)
Dened benet pension scheme surplus 0.7 - 0.7 1.1
Net assets 98.5 37.7 136.2 155.8
22. Big Lottery Fund and Awards or All
During the year the Big Lottery Fund and Awards or All provided grants or the ollowing projects:
Purpose o grant
Balance1 January
2011000
Income000
Expenditure000
Balance31 December
2011000
Reugee orientation - Bradord 20 3 (19) 4
Reugee orientation - Portsmouth 28 - (28) -
Reugee orientation - Manchester (reaching communities) (1) 80 (72) 7Reugee service - Leicester 14 65 (55) 24
Reugee service - Nottingham / Derby 27 106 (114) 19
Reugee unit - Birmingham - 77 (64) 13
Dawn patrol - Merseyside 16 39 (41) 14
Dawn patrol - Wigan 25 47 (47) 25
Young carers have a say in Shropshire 15 58 (63) 10
Young carers Wales - 19 (13) 6
Goal North Wales - 46 (38) 8
Mobile medical loan outreach Wales - 118 (102) 16
Total 144 658 (656) 146
Balances as at 31 December 2011 are included within our restricted unds.
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Thank you
The British Red Cross would like to thank every individual
and organisation who supported our work in 2011.
They responded with great compassion and speed at
times o emergency as well as maintaining our ongoing
work in the UK and overseas.
We would particularly like to thank all those whosupport us regularly, enabling us to plan ahead with
condence. We remember with gratitude the generosity o
donors who let gits to us in their wills. We would also like
to thank all our local undraising committees and volunteers
or their hard work.
We would like to give special thanks to:
Sir Arnold Elton CBE and the International
Medical and Scientifc Committee or their
support o our health projects across the world
The European Commission or generously
supporting our work to raise awareness o
development and migration issues in the UK
and across Europe and to support the preventiono TB and HIV among most at risk populations
in Kazakhstan
Soroptimist International Wales South Health
Education and Hygiene Trust or their support
o our community-based health programme in
Sierra Leone
The Wellington Hospital and the Wellington
Appeal Committee or their support o orphans
and vulnerable children in South Arica
Alderman and Mrs Andrew Parmley,
Co Chairmen, and the City o London
Christmas Market Committee
Allen & Overy LLP
Ashmore Group
AstraZeneca
Band Aid Charitable Trust
Barclays
The Bernard Lewis Family Charitable Trust
The Bradbury Foundation
Canon Europe and Canon UK
City o London Corporation
EMI Group
The Freemasons Grand Charity
Gareld Weston Foundation
Guernsey Overseas Aid Commission
Isle o Man Overseas Aid Committee
Inchcape
Jersey Overseas Aid Commission
The John Lewis Partnership
Land Rover
Mondrian Investment Partners LtdRoyal Bank o Scotland Group
The Scottish Government
The Skagen Charitable Trust
Sony Computer Entertainment Europe
Tesco
The Thompson Family Charitable Trust
v The National Young Volunteers Service
Zochonis Charitable Trust
Thanks also to members o the
ollowing committees:
Mr Andrew Baudains and the Jersey Fundraising
Committee
Mrs June Clague and the Isle o Man
Fundraising Committee
East Herts Ladies Fundraising Committee
The London Christmas Fair Committee
Mrs Georgiana Osborne and the Tayside Gol
Committee
Mrs Maria Shammas MBE and the International
Fundraising Committee
Tiany Circle Steering Committee
Mrs Flora Walker and the Lothian Ball Committee
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Thanks also to:
The Baili and People o Jersey
Bloomberg
Dr E Boyd and Miss J A Boyd
The Cargill Trust
Mrs Henrietta Cayzer
The Constance Travis Charitable Trust
Costco Wholesale UKMr Terry Cross o Delta Print and Packaging
The Dowager Countess Eleanor Peel Trust
Fujitsu
Glasgow Airport Flightpath Fund
GlaxoSmithKline
H&M
Mrs Janie Hamill
Mr Trevor Hemmings CVO
The Herbert and Peter Blagrave Charitable Trust
The Herd Lawson and Muriel Lawson
Charitable Trust
HSBC Trust Company as Trustees o The Merrick
and Heath Fund
J Van Mars Foundation
JMP Wilcox
LieScan Scotland
Lotus Foundation
Mr John Maclean
Melbreak Charitable Trust
Amanda Nicholson, President o Buckinghamshire
John Nike OBE DL
Pzer and Pzer Foundation
Phoenix Motors
The Rt. Hon. Earl o Portsmouth DL
RedBurn
Ricoh Europe
Sale Mayoral Fund
Scouloudi Foundation
The Sir James Reckitt Charity
The Tula Trust
Mr Boyd Tunnock CBEThe Ulster Bank
Virgin Atlantic
Wales Council or Voluntary Action
The emblem o thered cross on a whitebackground is the visiblesign o protection underthe Geneva Conventions.
46 British Red Cross Trustees report and accounts 2011 47
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PhotosCover: Apex News & Pictures, Theo Moye/Apex, Sarah Oughton/BRC, HarveyHook/Hot Spot Media, Bob Collier/BRC, Ken Oloo/IFRC, Jakob Dall/Danish Red
Cross, Callum Bennetts/Maverick Photo Agency, Bob Collier/BRC, Daniel Rushall/UNP, Dave McHugh/UNP, Simon Ryder/UNP, Chris Saville/UNP, Andy Buchanan/UNP, Ziv Koren/BRC, Pacciani Agostino/IFRC, Matt Percival/BRC, Tim George/UNP, John Millard/BRC.
Page 1: Ziv Koren/BRC.Page 2: Chris Bull/UNP.Page 3: Alex Rumord, Lloyd Sturdy/BRC.Page 5: Mark Passmore/Apex News & Pictures.
Page 6: Sarah Oughton/BRC, Henry Makiwa/BRC, Marie Therese Hurson/UNP.Page 7 Harriett Armstrong, Pete Willows, Katrina Crew/BRC.Page 8: Fabio De Paola/UNP, Anthony Upton.
Page 9: Patrick Harrison, Ziv Koren/BRC, Dimitris Legakis/ UNP.Page 10: Chris Saville/UNP, Theo Moye/Apex, iStock.Page 11: Kristian Buus, Dr Shaheen Ahmed/BRC, Chris Bull/UNP.Page 13: Sam Frost/ UNP.
Page 15: Sarah Oughton/BRC.Page 17: Apex News & Pictures.Page 20: Sarah Oughton.Page 47: Tim George/UNP
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The British Red Cross is required at all times to actin accordance with the undamental principles o theInternational Red Cross and Red Crescent Movement, theworlds largest independent humanitarian organisation:
Humanity, Impartiality, Neutrality,
Independence, Voluntary service,
Unity, UniversalityFor more inormation about the Movement,visit redcross.org.uk/movement
British Red Cross
44 Moorelds
London
EC2Y 9AL
Tel 0844 871 1111
Fax 020 7562 2000
redcross.org.uk
Published in April 2012
The British Red Cross Society, incorporated by
Royal Charter 1908, is a charity registered inEngland and Wales (220949) and Scotland (SC037738)
http://redcross.org.uk/http://redcross.org.uk/