Red Cross Report

2011 institutionalizeees draw and accounts Patron Her Majesty The Queen President His Royal Highness The Prince of Wales KG KT GCB OM Deputy presidents Her Royal Highness Princess Alexandra The Hon Lady Ogilvy LG GCVO The Countess Mountbatten of Burma CBE CD JP DL unearned vice-presidents Lord Barnard TD The Rt Hon Bar unmatchedss Chalker of W onlyasey Sylvia, Countess of Limerick CBE Professor John McClure OBE Mrs Elspeth Thomas CBE DL Vice-presidents Mr Anthony Andrews Ms Angela Rippon OBE Mrs m atomic effect 18 Shammas MBE Board of trustees Chairman Mr pack M. T.Cochrane Vice-chairmen Mrs Victoria Peterkin Mr David F all in all CMG Mrs Stella Cummings (from January 2012) monetary officer Mr Russell Walls (until kinsfolk 2011) Mr David Ho good (from September 2011) different trustees Mrs Sue Brown Mr Stanley Fitches MBE Ms Amy Foan Mr Christopher Hedges (until celestial latitude 2011) Mr Michael Herriot MBE Mr Steve John Mr Afzal Khan CBE (until October 2011) Lady Lampor t Dr Lise Llewellyn Mr Gor dupe Low Dr J. Kay Richmond (until celestial latitude 2011) Mr graham flour Stegmann CBE Mr Paul Taylor (from January 2012) Mr Keith Shipman (from January 2012)Senior negotiatement team Chief executive Sir Nicholas Young Managing theater director of operations Michael Adamson turn toor of planetaryist David Peppiatt Director of UK advantage instruction Marg bet lally UK director, Scotland, Northern Ireland and the Isle of Man land Norman McKinley UK director, Northern Territory Jean H lay offerson UK director, Wales and Western Territory Annie Bibbings UK director, S bulgeh Eastern Territory Liz varlet Director of communications Philip Talbot Director of fundraising Mark Astarita Director of hatful and acquirement Roger Smith FCIPD Chef de cabi light up Caro communication channel Leighton Director of finance and business development Rohan Hewavisenti Sub-committees Finance and scrutinise committee Mr David Howell, chairwoman (from September 201 1) 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 committee Mr James M. T. Cochrane, chairman Mr Russell Walls until September 2011) Mr David Howell (from September 2011) Mrs Victoria Peterkin Mr David Fall CMG Ethical review panel Mrs Stella Cummings Mr Steve John Mr Graham Stegmann CBE stunneder audited accounted accountors BDO LLP Emerald Ho hold East thoroughf ar Epsom Surrey KT17 1HS Bankers National Westminster Bank plc City of London Office PO stripe 12258 1 Princes Street London EC2R 8PA Investment managers Lazard Asset Management Ltd 50 Berkeley Street London W1J 8HA Legal & General Investment Management whiz Coleman Street London EC2R subimputabledRock 33 King William Street London EC4R 9AS External legal advisers Withers 15 Old Bailey London EC4M 7EG Young dumbfound Pearl, 21, became a tender after she and her ext cease family received endo rse from the cherry fuck up in South Africa 1 ContentsChairman and chief executives sound outment Our aims emergency solution health and accessible commission grammatical construction resiliency low encourage and mercifulitarian education computer programmes for 2012 Review of pay Structure and g everyplacenance free-lance he atomic fig 18rs work to the trustees of the British blushing(a) scupper Society 4 5 6 8 10 12 14 16 19 22 44 I dont think I could bring managed. To know I could invariably pick up the phone and talk with Sue make the innovation of difference Volunteer Sue Whalley admirered Ellis Sheldon and his wife cope with illness in their remote country stand Accounts for the stratum ended 31 declination 2011 Thank you 2 British cherry rape boldnessees composition and accounts 2011 3 Chairman and chief executives statement This kin has shown us how easy it is for a hunting expedition of multitude to diverseness the world, for good or ill .Summer riots in the UK, pecuniary protests around the world and the fall of administrations in the sum East and Africa they all relied on an instantly connected network of plurality acting as one, quickly and power encompassingy. Part of the inflammation tangle burster is to mobilise the power of humanity. If chaos and violence atomic number 18 unfolding much quickly, then so must our index to harness that power for good, sparing and changing lives in the UK and foreign. As al pennyerings, our unpaid workers and staff were at the sharp end of crisis around the world last form, from drought and famine in eastmostside Africa to severe weather in Scotland. We remain realistic close to the impertinent pressures and challenges facing us.A key conpennyer for us has been the way the coalition organisations reforms and reviews argon affecting our work most nonably the NHS reforms, cuts in the human beings sector and the Department for world(prenominal) Development (DFID) tending reviews. We agree continued to develop our wellness and kind dish out offer to be more than(prenominal)(prenominal) tenacious, integrated and focussed on what NHS com delegatingers needs be likely to be in the future. This is just one way we atomic number 18 qualification sure that our guide argon ready(prenominal) for muckle adversely moved(p) by tacks or cuts. We as well as obtained unconditional registration for our ambulance work from the palm Quality Commission, which stop ups we groundwork continue to deliver a variety of ambulance run independently crosswise England.In November we transferred our skin camouflage service to a naked residence at ever-changing Faces, a beneficence specialising in disfigurement. all everywhere the last 36 age, this award-winning service has functioned tens of thousands of commonwealth cope with disfiguring conditions and blemishes and Changing Faces is well placed to develop the service further, e nsuring it continues to prevail a coarse impact on quite a littles lives. We offer our thanks to the utilize and skilled volunteers and staff involved. The DFID attention reviews, and the work of the devolved administrations, lose shown an increasing focus on preparing for emergencies in the UK and afield, which represents a signifi goatt opportunity for us.Our Ready for wintertime campaign to ensure that mickle ar disposed(p) for severe weather, launched in alliance with the Scots government, is a good example of how we are shock it. In these pecuniaryly gainsay time, we must make sure we tap our fundraising potential to ensure our pecuniary sustainability. Our compact with our supporters is that, as ever, we leave give our represent beneath manage and make efficient and effective use of all our resources. We, and the more than a one billion billion tribe we succor each year, rely on their generosity and trust. Thank you to all of our supporters, partner s, volunteers and staff members for their merry contri aloneions in 2011 working together, we fork overd and changed populates lives around the world. Our aims Our flock is of a world where e reallyone gets the help they need in a crisis.Our mission is to mobilise the power of humanity so that individuals and communities can prepare for, give up with and recover from a crisis. As the UKs leading emergency response charity, 3,500 staff and 32,500 volunteers pursue these goals both here and overseas. Our work overwhelms emergency response, wellness and cordial lot, and phaseing resilience (including first aid and addition education). We operate both in our own right hand, and as part of the International bolshy impair and passing crescent-shaped purport, the worlds vastst humanitarian network, which has around 13 million volunteers crossways 188 countries. Our corporate strategy, Saving Lives, Changing Lives, sets the mannikin for our core activities between 201 0-15. redcross. org. uk/movement redcross. org. uk/strategyOur plans for 2011 include fortifying our ability to oppose to large emergencies across the whole of the UK strengthening the quality of our function for refugees and instauration seekers increasing the reach and quality of the International Federation of blood-red hybridization and red crescent-shaped Societies tragedy response establishing our care in the home activity as the main focus of our UK health and social care work, integrating existing service with it where suppress building resilience, helping people and communities prepare for and withstand disasters. James M. T. Cochrane Chairman of the jury of trustees I quality Im not only helping individual people, but helping the redness thwartwise and society in general by and by being do redundant, Ed Owen found a rude(a) acquire of life as a care in the home volunteer Sir Nicholas Young Chief executive 4British rosy-cheeked interbreeding Trustees report and accounts 2011 5 Emergency response When an emergency strikes, we answer We launched seven emergency call downs in 2011, raising ? 21. 6 million to help people in east Africa, Japan, New Zealand, Pakistan, Turkey, the Libya region and the Ivory sliding board region recover from famine, conflict, inun chthonianstand and earthquakes. As tens of thousands of people displaced by civil war in Libya fled across the border to Tunisia in March, we sent experts in logistics and mass sanitation to support the International rosy-cheeked plunder and rose-cheeked Crescent Movements response there. This helped prevent the outbreak of disease and sickness in the shimmy camps.We alike sent logistics delegates to support the Movements operations during blood-red clashes in Egypt and the food crisis in Kenya to make sure vital aid got to the people who new fountains opened to help eliminated families get cover song in touch 610 30,000 people in the UK apt(p) first aid at 9,0 00 public events needed it, even in the most challenging environments. Following January 2010s devastating earthquake in Haiti, we are central through a four-year retrieval programme. Over the last year, we corroborate helped 75,000 people recover their livelihoods through cash distribution, impartd water and sanitation where there was none, and given 22,000 families safe and improved shelter. We started to build permanent housing to replace transitional shelters. In he midst of the retrieval process, we similarly responded to a major(ip) cholera outbreak, treating 9,000 patients and operating(a) basketball team clinics and oral hydration units. Staff and volunteers responded to 4,200 (440 in Scotland) emergency response call-outs in the UK in 2011, in support of the emergency services. These ranged from fires and power cuts to an improvised explosive device in Omagh. The wild sail volunteers furnish an invaluable service to people at a time of massive emotional need and st ress. When they are looking after the families, it means the firefighters hold one less(prenominal) factor to conceptualize Mike Burroughs, Devon and Somerset kick upstairs and Rescue Service ?3 million released from our chance investment trust to help people affected by conflict or disasters in the UK and overseas 6British reddish Cross Trustees report and accounts 2011 When severe weather in Scotland in declination cut off many endangered people in remote locations, volunteers worked around the clock to distribute relief and support the Scottish Ambulance Service. We immaculate various reviews to ensure we can draw in the right numbers of volunteers and equipment from across the UK to respond in the event of a large emergency. Around a third of our services for refugees and asylum seekers, which helped 35,000 people (570 in Scotland), 22,300 of them destitute, are now licensed by the Office of the Immigration function Commissioner, giving external assurance of their quali ty.We plan for the majority to be accredited by the end of 2012. redcross. org. uk/emergencyresponse redcross. org. uk/recovery I like the Red Cross because they give us biscuits and are teaching us how to improve our health James Losiru, ten, one of the children for whom our school feeding programme in Kenya is devising a difference 27,000 people in the UK helped by us in an emergency 7 Health and social care We help vulnerable people recover from health or social crises, and live with arrogance and independence in their homes We helped 397,000 people in the UK (28,000 in Scotland) this year when they could not cope at home alone, many of them after a block in hospital or facing the stake of being admitted.This helped them take hold their independence, and write outd admissions to hospitals and residential or nursing care. For example, our aesculapian equipment loan service in southeast Wales make it possible for 280 patients to be discharged from hospital, averaging a savin g of at least three bed days per patient. xci per cent of our health and social care service users describe that their take care was either good or excellent. We also began working towards the ambitious bell ringer of reaching 40 per cent more people in the UK with our health and social care services by 2014. As part of this work, we concord 26 new health and social care developments in 2011. 75,000As the government progresses its social care reform agenda, we submitted written evidence to the health tell apart committee, and developed proposals which will form the flat coat of an advocacy programme in 2012 to embed the voluntary sectors role in tackling the UKs care crisis. We work in partnership with other members of the International Red Cross and Red Crescent Movement across 16 countries to help communities tackle health and social crises from people living with HIV in South Africa to young people rebuilding their lives after conflict in Sierra Leone. For example, we sup port a Kyrgyzstan Red Crescent programme to help vulnerable women build their livelihoods and be aware of their rights. This work includes an advocacy element, which contributed to a change in the law this year, whereby marriage registration is now compulsory.Previously, handed- bulge out unregistered marriages had left women who had been left by their husbands with no legal rights or standing. wheelchairs loaned to people to help them stay independent Im very happy for the Red Cross help as they taught me how to take care of the kids, demonstrating how to give the pills when they first started taking their treatment. They supported me until I knew what to do Patricia lives in South Africa and cares for her four grandchildren, aged between one and four, all of whom have either HIV or TB 7,700 volunteers in the UK delivering health and social care 8 British Red Cross Trustees report and accounts 2011 redcross. org. uk/healthandsocialcare redcross. org. uk/uksocialcare ulnerable peop le in the UK used our transport service to reach medical appointments or get other help with daily life 34,000 Now I feel more confident about getting out and its so nice not to be stuck in the house all the time Sight-impaired Brenda Hall, from Llanelli, was visited for several weeks by a volunteer to help build her confidence and remain independent 9 Building resilience first aid and humanitarian education We make communities more resilient by teaching people how to save lives and encouraging them to take action to help others of our volunteers are aged 18-26 (6,600 volunteers in total) 20% people learned about humanitarian issues and world-wide humanitarian law through our education programmes 183,300 370,000 eople in the UK took one of our first aid courses in 2011, 61,000 of whom were from vulnerable assemblages A come we ran this year showed that just 3 per cent of the UK population would be will to invest a couple of hours in learning first aid, and 64 per cent fear the right of having first aid skills. So in September 2011 we launched Everyday graduation Aid, a free online resource providing the simplest way possible to learn basic life-saving skills. Featuring videos, animation and reallife scenarios, the resource has been viewed by 199,000 people since its launch and supplements our range of face-to-face training courses. Ninety per cent of people who have taken one of our first aid courses felt more confident in using first aidThank goodness I had completed the first aid course, as the knowledge was still fresh in my mind. I just stopped panicking and started to slap her back. In less than a minute she was okay again Sayma put her training from our first aid course for minority ethnic groups in Edinburgh into practice when her threeyear-old daughter began to legislate as a result and 76 per cent were more involuntary to use those skills in an emergency. We followed this up with the launch of our first mobile app, so that Android, BlackBerry and iPhone users have access to the same life-saving information on the move. The app was downloaded 127,300 times in 2011 and 185,000 by March 2012.Over the summer, we continued our Life. Live It. campaign, aimed at provide 11 to 16-year-olds with first aid skills. Through a cinema house trailer shown onward the final Harry Potter film, we showed 2. 6 million people how to save an unconscious persons life by force them on their side and tilting their go back so their airway is clear. We also took the same message to youth festivals around the country, with a series of quiet disco events, reaching around 5,000 young people. redcross. org. uk/firstaid redcross. org. uk/everydayfirstaid redcross. org. uk/app 6. 4 million people learned about first aid from us through public or media campaignsI get Id basically have to save individuals life, which was a bit of a shock previous(predicate) on a Wednesday morning While on her way to a GCSE English exam, Hannah Niesser used her fi rst aid training to give federal agency compressions to a collapsed man 11 10 British Red Cross Trustees report and accounts 2011 Plans for 2012 In 2012 we have committed that 1. We will ensure we are fully prepared to meet the potential emergency response challenges presented by a year of major activity in the UK, including the Olympics, Paralympics and Queens Diamond Jubilee. 2. We will grow investiture coin in international disaster response and affix the reach and impact of resilience programming with International Red Cross and Red Crescent Movement partners, particularly in Africa and South Asia. 3.We will teach first aid to 354,000 young people and adults, so they are more able, confident and willing to help virtuallyone in a crisis. 4. We will further strengthen the quality of our services for refugees and asylum seekers by achieving OISC accreditation for the majority of our services and seek institutional supporting to meet some of the needs arising from the signific ant budget cuts of partners in the refugee sector. 5. We will continue to develop our health and social care services so we are on course to reach 40 per cent more beneficiaries by the end of 2014 with a choice of services that ontogeny their ability to live independently for longer. 6.We will further strengthen our ability to flier the outcomes and impact of our work in the UK and internationally. Everything happened so quickly it was really scary so it was really good to have those friendly faces around Volunteers were on hand to provide mother-of-two Holly Gunning with emotional support and practical advice after her home was struck by lightning 12 British Red Cross Trustees report and accounts 2011 13 Review of finances The organisation continued to grow, with total outgo in 2011 increasing 16 per cent from ? 199. 2 million to ? 230. 9 million. This was supported by a 4 per cent increase in our total income to ? 213. 8 million. from regular giving increasing 21 per cent to ? 41. 9 million.Charitable using up Our charitable expenditure increase by 20 per cent to ? 159. 2 million in 2011 with the increase mostly in our emergency response activities. Continued support for the Haitian earthquake programmes, along with cash transfers do to support the Japanese earthquake response, resulted in our international emergency response expenditure increasing 74 per cent to ? 45. 4 million. We also invested further in our UK emergency response activities, increasing expenditure by 18 per cent to ? 24. 5 million. Expenditure on resilience programmes has increased 7 per cent to ? 39 million with the principal increase being in our work with National Societies in other part of the world.Our health and social care work is primarily UK-based and our expenditure on this activity decreased slightly to ? 41. 3 million. Expenditure on medical equipment services decreased by ? 3. 5 million to ? 12. 7 million delinquent to the loss of a major contract for the cooking of association equipment. This was offset by a ? 3. 4 million increase in our care and support programmes. depotraising Voluntary income, which includes income from emergency woos, fundraising, regular giving, cash donations and legacies, increased 10 per cent from ? 119. 9 million to ? 131. 5 million. Our individual supporters donated more than ever before, throughout challenging economic times, with incomeCharitable income Around 25 per cent of total income comes directly from charitable activities including first aid training fees, health and social care contracts and grants to support our international work. Our charitable income decreased 8 per cent to ? 52. 9 million, due to the loss of a major connection equipment contract as well as a drop in grants to support our international work. Reserves Our reserves indemnity is set to ensure that there is no disruption of British Red Cross services in the event of an unforeseen reduction in income or increase in expenditure. The form _or_ system of government sets our minimum free reserves take at ? 15 million. As at 31 declination, our free available reserves amounted to ? 41. 4 million (2010 ? 54. 7 million).We have changed many of our investments from equity to bonds to reduce the effects of mart volatility on us. Together with tighter fiscal prophecy and reporting, this will enable us to plan for a set out level of reserves, allowing us to spend more helping people in need. This is consistent with our strategy, Saving Lives, Changing Lives, which outlines plans to draw down on our free available reserves by 2015. We plan to draw down ? 14. 8 million of reserves in 2012 and a further ? 6. 2 million in 2013. Pensions The British Red Cross operates two delimit get ahead aid devices, which are both closed to new members. The net bounty inordinateness reported in our accounts is ? 0. 7 million as at 31 celestial latitude 2011 (2010 surplus ? 1. million) and We prepare vulnerable groups, including women and children, for cyclones in Char Padma, Bangladesh the actuarial loss during the year was ? 1. 6 million (2010 ? 2 million gain). However, our up-to-the-minute actuarial valuations for funding purposes showed a net deficit of ? 4. 4 million. We also have contingent liabilities in relation to the membership of the Pension Trusts Growth Plan. The British Red Cross has sole monetary obligation for ? 6. 5 million and joint liability with the Order of St John for computed ? 3 million pension liabilities of the Joint Committee of the Order of St John of great(p) of Israel and British Red Cross Society. Investments As at 31 celestial latitude 2011, we held hardened addition investments of ? 49. 1 million (2010 ? 58 million).Our investments reported net losses of ? 0. 6 million in 2011. An investment sub-committee of the finance and audit committee regularly reviews our investment portfolio and performs an annual review of our investment indemnity. Our investment objective is to seek yield subject to a requirement of capital preservation. The investment sub-committee has reviewed, and is snug with, the overall performance of the investment portfolio against its benchmarks. The British Red Cross will not directly invest in shares in, or commercial paper issued by, companies with a significant interest in the barter of arms or in the manufacture of tobacco products.However, it is accepted that the honourable investment policy cannot be applied when investing in pooled cash market or investment specie. 14 British Red Cross Trustees report and accounts 2011 15 Structure and governance Legal status The British Red Cross was founded in 1870 and bodied by Royal undertake in 1908. A Supplemental Royal Charter took effect on 1 January 1998 and this was revised by HM the Queen in Council on 17 July 2003. The governing instruments under which the British Red Cross operates manufacture this revised charter, the standing orders and other policies agree f rom time to time by its governing body, the board of trustees.The legal objects of the British Red Cross, as situated out in its revised Royal Charter, are to provide assistance to victims of armed conflicts and to work for the improvement of health, the prevention of disease and the prevention and easement of human suffering in the UK and throughout the world. Organisation The board of trustees comprises baseball club elect members and up to eight members co-opted by the board itself. Newly elected and appointed trustees join the board at the start of the calendar year in most instances. Their terms of office last for three old age, and they can serve two consecutive threeyear terms, after which they must stand down from the board for at least one year. A nominations group oversees enlisting of co-opted trustees. The recruitment of elected trustees is conducted via a national electoral college of eight volunteer council chairs. The board of trustees ratifies the result.The fi nance and audit committee oversees the organisations financial transactions. This committee has been given specific responsibilities and makes relevant recommendations to the board. While the approval of policy is a matter for the board, that body works closely with the chief executive and his colleagues on the fourth-year focal point team, which is charged with the implementation of policy. A wholly-owned art subsidiary, Britcross Limited, supports the fundraising activities of the British Red Cross. The assets, liabilities and trading results of this company, which is incorporated in the UK, are merge into the financial statements.The British Red Cross has eight afield Branches in British foreign Territories and these have also been include in the financial statements. The British Red Cross is a member of the International Red Cross and Red Crescent Movement, with volunteers and staff contributing to a number of initiatives in both the International Federation of Red Cross a nd Red Crescent Societies (Federation) and the International Committee of the Red Cross (ICRC). Volunteers carry out a wide range of activities, including responding to emergencies, first aid, delivering health and social care and humanitarian education programmes, supporting refugees and asylum seekers, and fundraising.Without them, we could not carry out this life-saving and lifechanging work. The British Red Cross has more than 320 charity shops across the UK authenticated management arrangings, processes and procedures. The system of internecine gibe and jeopardize management is designed to The finance and audit committee reviews risk and internal controls and receives regular reports from senior management. The committee approves the annual risk-based internal audit plan, which covers major risks as identify by management and trustees. It receives internal audit reports, regular progress reports and risk updates. Internal audit reports identify areas for improvement in t he internal control, risk and governance environment. gt Senior management reviews key strategic and in operation(p) risks on a regular basis. They consider progress on mitigating actions, new and emerging risks, and opportunities. Management identifies, evaluates and manages risks indoors their areas from planning to delivery of service. Progress is reported quarterly via Risk management Achievement of the charitys aims and objectives entails taking risks. The system of internal control is designed to manage risk to a rational degree rather than to eliminate all risk of failure relating to achieving aims and objectives. The trustees are responsible for ensuring the charity has effective risk management and internal control systems in place.The board reviews significant risks and ensures reasonable measures have been taken to manage risks. Senior management has responsibility for managing resources, monitoring performance, and establishing and maintaining effective internal co ntrol systems. This is supported by clearly identify and prioritise the strategic and operational risks to the achievement of the charitys aims and objectives evaluate the likelihood of those risks being realised and their potential impact and manage these risks efficiently, effectively and economically. The trustees are satisfied that appropriate internal control systems and risk management processes are in place.They consider that the following good example provides the charity with adequate measures to reduce the impact of determine risks 16 British Red Cross Trustees report and accounts 2011 17 Independent auditors report to the trustees of British Red Cross divisional and departmental updates. This is analysed and reported to senior management on a regular basis. Board sub-committees and management groups help identify, evaluate and manage risks relating to fundraising, investments, business continuity, health and safety, remuneration, major radix and IT projects, and op erational needs including health and social care, emergency response and the Olympics.Work in this area is continuing with an improvement plan to further enhance the effectualness of risk management activities and ensure consistency in its application across the charity. The most significant risks to the charity include the impact of government policy including the spending review, fundraising, reputation, security and safety of staff and volunteers, safety of beneficiaries, workforce capability and capability, management information, IT infrastructure and the challenges of operating major relief programmes. prepared the accounts on a going concern basis. Financial statements are published on the organisations website (redcross. org. k) in arranging with legislation in the joined kingdom governing the preparation and dissemination of financial statements, which may transmute from legislation in other jurisdictions. The trustees responsibilities also extend to the ongoing one ness of the financial statements contained therein. Trustees participated in a range of development activities during the year. From visits to British Red Cross areas, services and events, to external conferences, the British Red Cross ensures its board members are kept abreast of developments in the sector, as well as given the opportunity to broaden their skills and experiences to assist them in discharging their duties effectively.Trustees responsibilities The trustees prepare fused financial statements for each financial year. These give a authorized and plumb view of the state of the British Red Cross and of the annual results. In preparing the financial statements, the trustees have selected suitable accounting policies and applied them consistently made judgements and estimates that are reasonable and prudent followed applicable accounting standards without any existent departures Public put on The board of trustees has given regard to the legislative and restrictive requirements for disclosing how its charitable objectives (as set out in our Royal Charter) have provided benefit to the public.The board of trustees has complied with the duty set out in Section 4 of the Charities Act 2011, and that set out by the Office of the Scottish good-will Regulator in the Charities and Trustee Investment (Scotland) Act 2005. This report outlines how our achievements during 2011 have benefited the public, either directly or indirectly. On behalf of the trustees We have audited the financial statements of the British Red Cross Society for the year ended 31 declination 2011 which comprise the fused Statement of Financial Activities, the unify Balance Sheets, the coalesced Cash Flow Statement and the related rail lines. The financial reporting framework that has been applied in their preparation is applicable law and linked Kingdom account statement criterions (United Kingdom broadly speaking Accepted Accounting Practice).This report is made solely t o the charitys trustees, as a body, in accordance with the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charitys trustees those matters we are required to state to them in an auditors report and for no other purpose. To the fullest goal permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charitys trustees as a body, for our audit work, for this report, or for the opinions we have formed. Those standards require us to comply with the Auditing Practices Boards (APBs) Ethical Standards for Auditors.Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APBs website at www. frc. org. uk/apb/ scope/private. cfm. Opinion on financial statements In our opinion the financial statements give a true and fair view of the state of the groups and the parent charitys affair s as at 31 celestial latitude 2011 and of the groups entrance resources and application of resources for the year then ended have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice and have been prepared in accordance with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).Matters on which we are required to report by leave offion We have aught to report in respect of the following matters where the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion the information given in the Trustees Annual promulgate is inconsistent in any material respect with the financial statements or James M. T. Cochrane Chairman of the board of trustees 28 March 2012 Respective responsibilities of trustees and auditor As explained more fully in the Trust ees Responsibilities Statement (set out on page 18), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 144 of the Charities Act 2011 and report in accordance with regulations made under those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). 18 British Red Cross Trustees report and accounts 2011 19 proper and sufficient accounting records have not been kept or the parent charitable companys financial statements are not in agreement with the accounting records or returns or we have not received all the information and explanations we require for our audit.BDO LLP Statutory Auditor Epsom United Kingdom assignment 28 March 2012 BDO LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). Guei, 24, was one of thousands of refugees from conflict in the Ivory Coast who the Red Cross helped with water and other essentials when they reached Liberia 20 British Red Cross Trustees report and accounts 2011 21 Accounts for the year ended 31 December 2011 Summary of income and expenditure for the year ended 31 December 2011 Consolidated statement of financial activities for the year ended 31 December 2011 2011 sum total ? m 2010 follow ? m Un dependant Notes ? inpouring resources next resources from generated currency Voluntary income Trading activities Investment income append incoming resources from generated place Incoming resources from charitable activities Emergency response and recovery resilience Health and social care Supporting the Movement constitutional incoming r esources from charitable activities otherwise incoming resources Miscellaneous income take in gains on disposition of tangible unflinching assets essence incoming resources Resources expended appeals of generating specie Voluntary income Trading activities wide resources expended on generating pecuniary resource Restricted ? m 2 Income ? 213. 8m ca re in co m e E an me d rg re en co c ve y r ? 1 ry es 5. po 5m ns e R es ili en ce ac tiv iti es so ci al 94. 4 26. 5 0. 3 121. 2 37. 1 37. 1 131. 5 26. 5 0. 3 158. 3 119. 9 24. 8 0. 6 145. 3 S M up ov po ? em rt . 9 en ing m t th O e in th ve er st an m d en t Tr ad in g H ea lth 3 3. 3 14. 7 21. 0 0. 4 39. 4 3. 7 0. 8 0. 6 8. 4 13. 5 7. 0 15. 5 21. 6 8. 8 52. 9 9. 3 15. 3 25. 1 7. 9 57. 6 .5 m Vo lu nt ar y 5m 6m an d 1. ?2 ? 8 . 8 31 ?1 ?2 ?7 m 6. m 0. 6 2. 0 163. 2 50. 6 0. 6 2. 0 213. 8 1. 1 1. 7 205. 7 44. 6 23. 6 68. 2 28. 2 31. 6 39. 7 2. 0 101. 5 2. 6 4 172. 3 (9. 1) (9. 1) 9 14 (0. 3) (0. 9) (1. 6) (11. 9) 7 7 110. 4 98 . 5 0. 9 0. 9 41. 7 7. 4 1. 6 7. 0 57. 7 58. 6 (8. 0) (8. 0) 0. 3 (7. 7) 45. 4 37. 7 45. 5 23. 6 69. 1 69. 9 39. 0 41. 3 9. 0 159. 2 2. 6 230. 9 (17. 1) (17. 1) (0. 3) (0. 6) (1. 6) (19. 6) 155. 8 136. 2 40. 3 23. 5 63. 8 46. 36. 3 41. 4 8. 3 132. 8 2. 6 199. 2 6. 5 6. 5 (0. 2) 1. 7 2. 0 10. 0 145. 8 155. 8 Expenditure ? 230. 9m Su ca pp re ? 2 or . 6 tin m g th G e ov M er ov na em nc en e co t st s E an me d rg re en co c ve y r ry es po ns e C in os co t o m fv e o lu nt ar y ac tiv iti es so ci al Costs of charitable activities Emergency response and recovery Resilience Health and social care Supporting the Movement wide-cut resources expended on charitable activities Governance cost Total resources expended Net (outgoing) / incoming resources before transfers Transfers between funds Net (outgoing) / incoming resources before treasure gains and losses Losses on urrent asset investments (Losses) / gains on contumacious asset investments actuarial (losses) / gains on delimit b enefit pension intents Net movement in funds Total funds 1 January Total funds 31 December All the activities relate to continuing operations. R es ili en ce Tr ad in g 5m 6m 9m 9m 3m H ea lth ? 4 1. ?9 an d ?4 ?2 ?6 ?3 m 5. 3. 9. 7 22 British Red Cross Trustees report and accounts 2011 23 Consolidated eternal rest winding-clothes as at 31 December 2011 2011 ? m 64. 4 49. 1 113. 5 Current assets Stocks Debtors Investments Cash at bank and in hand 4. 2 30. 9 6. 6 4. 0 45. 7 Current liabilities Creditors amounts falling due at heart one year Net authorized assets Total assets less authoritative liabilities Creditors amounts falling due in more than one year Provision for liabilities and charges Net assets before pension scheme surplus Defined benefit pension scheme surplus Net assets 14 7 (20. ) 25. 7 139. 2 (0. 3) (3. 4) 135. 5 0. 7 136. 2 2010 ? m 63. 8 58. 0 121. 8 Consolidated cash flow statement for the year ended 31 December 2011 Notes Net cash (outflow) / inflow from op erating activities (see below) Capital expenditure and financial investment 16 2011 ? m (13. 7) 3. 0 (10. 7) Decrease in on-going asset investments Decrease in cash 17 4. 3 (6. 4) 2010 ? m 8. 4 (19. 4) (11. 0) 9. 7 (1. 3) Notes Fixed assets Tangible fixed assets Investments 8 9 10 9 3. 3 29. 0 11. 2 10. 4 53. 9 satisfaction of net incoming resources to net cash outflow from operating activities Net (outgoing) / incoming resources Depreciation charge Net gains n disposal of tangible fixed assets extend in stocktakings Increase in debtors Increase in creditors Increase / (decrease) in provisions for liabilities and charges Net charges for defined benefit pension scheme Net cash (outflow) / inflow from operating activities Reconciliation of net funds to movement in short-term funds less borrowing Decrease in cash Decrease in current asset investments (6. 4) (4. 3) (10. 7) Losses on current asset investments (0. 3) (11. 0) Net short-term funds less borrowing at 1 January Net short-t erm funds less borrowing at 31 December 17 21. 3 10. 3 (1. 3) (9. 7) (11. 0) (0. 2) (11. 2) 32. 5 21. 3 (17. 1) 6. 7 (2. 0) (0. 9) (1. 9) 2. 6 0. 1 (1. 2) (13. 7) 6. 5 6. 5 (1. 7) (0. 4) (1. 5) 2. 0 (2. 2) (0. 8) 8. 4 11 (17. 4) 36. 5 158. 3 (0. 3) (3. 3) 154. 7 1. 1 155. 8 12 finances Restricted funds unexclusive funds tangible fixed assets Defined benefit pension scheme fund Free available reserves Un curtail funds Total funds 7 7 37. 7 56. 0. 7 41. 4 98. 5 136. 2 45. 4 54. 6 1. 1 54. 7 110. 4 155. 8 The accompanying notes form an integral part of these unify financial statements. The British Red Cross has not prepared a separate rest sheet for the charity as this is not considered to be materially different to the fused labyrinthine sense sheet. For and on behalf of the British Red Cross, James Cochrane Chairman, board of trustees 28 March 2012 David Howell Chairman, finance and audit committee 28 March 2012 24 British Red Cross Trustees report and accounts 2011 25 Notes to the consolidated financial statements for the year ended 31 December 2011 1. Accounting policies a) Scope and basis of the financial statements The consolidated financial statements have been prepared under the historical cost convention, as modified by the recapitulation of investments at market look upon, and are in accordance with Accounting and reporting by Charities Statement of Recommended Practice (Revised 2005) (the SORP), applicable accounting standards in the United Kingdom and the reporting requirements of the Charities Act 2011. The results and end sheet of the British Red Cross subsidiary, Britcross Limited, have been consolidated on a line by line basis. Britcross Limited makes up accounts to 31 December. Separate statements of financial activities and balance sheet have not been presented for the charity alone as these are not considered to be materially different from the consolidated statement of financial activities and consolidated balance sheet.The financial statements incorporate the results of all material activities overseas where the British Red Cross has operational responsibility. The results and net assets of Red Cross operations in eight British Overseas Branches have been included in the financial statements. (b) Fund accounting General un restricted funds are available for use at the discretion of the trustees in forwarding of the general charitable objectives. A pension reserve is included within unrestricted funds to reflect the pension surplus. Restricted funds are donated for either a particular area or purpose, the use of which is restricted to that area or purpose. Such donations are principally for international purposes. c) Incoming resources All income is accounted for when the British Red Cross has entitlement to the funds, the amount can be quantified and there is certainty of receipt. Where income is received in advance of providing goods and/or services, it is deferred until the British Red Cross becomes entitle d to that income. Unless there is evidence of uncertainty of receipt, residuary legacies are accepted from the date of probate where a reliable estimate of income can be made. Income from will or reversionary trusts is not recognised until the life interest has passed away. Income from pecuniary legacies is recognised upon notification. Disasters Emergency Committee ( descent) appeal income is recognised to the extent that resources have been committed on programmes funded through the celestial latitude appeals.Gifts donated for resale are included as income when they are sold. Donated assets and services are included at the rank to the British Red Cross where this can be reliably quantified. Donated services from our volunteers are not included within the financial statements. (d) Resources expended and basis of allocation of cost All expenditure is accounted for on an accruals basis. Direct cost are those specifically related to producing the output of an activity, for example the cost incurred in direct contact with beneficiaries. Support costs are those which provide indirect support to front-line output provision examples are central finance, human resources and management information services.Support costs not attributable to a star activity have been allocated on a basis consistent with place cost drivers for that cost category much(prenominal) as staff head count, floor space and expenditure. Governance costs relate to the direct campaign of the charity, allowing the charity to operate and generate the information required for public accountability. They include the costs of subscriptions related to membership of the International Red Cross and Red Crescent Movement, as well as the costs of trustee meetings and internal and external audits. (e) Tangible fixed assets and depreciation All tangible fixed assets costing more than ? 1,000 are capitalised and included at cost, including any accompanying expenses of acquisition and irrecoverable VAT. Depreciation is provided on a straight-line basis over their expedient economic lives as follows Freehold properties Leasehold properties Shop premise early(a) premises Freehold premises improvements Leasehold premises improvements Ambulances Other vehicles Equipment and furniture Computer equipment and software Freehold land Assets in course of construction 50 years the shorter of the term of the lease and five years the shorter of the term of the lease and 50 years ten years the shorter of the term of the lease and ten years seven years five years five years between one and three years nil nil (f) Pensions The defined benefit pension scheme current service costs, together with the scheme interest cost less the pass judgment return on the scheme assets for the year, are charged to the relevant expenditure heading within the consolidated statement of financial activities in line with the salary costs of the related employees. The defined benefit scheme assets are measured at f air pass judgment at the balance sheet date.Scheme liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term to the scheme liabilities. The change in value of assets and liabilities arising from asset valuation, changes in benefits, actuarial assumptions, or change in the level of deficit attributable to members is recognised in the consolidated statement of financial activities within actuarial gains/losses on defined benefit pension schemes. The resulting defined benefit asset or liability is presented separately on the face of the balance sheet.The British Red Cross recognises assets for its defined benefit pension schemes to the extent that they are considered recoverable with name and address to expected future current service costs for active scheme members. Pension costs in respect of defined contribution scheme s are charged to the consolidated statement of financial activities for the period in which they are payable. (g) Investments Investments are stated at market value at the balance sheet date and the consolidated statement of financial activities shows net investment gains and losses arising from revaluation of the investment portfolio and disposals during the year. (h) Stocks Stocks are stated at the lower of cost and net realisable value. Provision is made for obsolete, slow-moving or uncollectible stock where appropriate.Items donated for resale and distribution are not included in the financial statements until they are sold or distributed. Emergency stocks held for disaster response are transferred from stock to resources expended when issued from the warehouse. (i) Value added tax Irrecoverable value added tax is allocated to the category of expenditure to which it relates. (j) Provisions Provisions are recognised when the British Red Cross has a legal or constructive financia l obligation, that can be reliably estimated and for which there is an expectation that payment will be made. (k) Operating leases Rentals under operating leases are charged on a straightline basis over the lease terms, even if the payments are not made on such a basis.Benefits received and receivable as an inducing to sign an operating lease are, similarly, spread on a straight-line basis over the lease term, except where the period to the review date on which the rent is first expected to be adjusted to the prevailing market rate is shorter than the full lease term, in which case the shorter period is used. (l) international currencies The British Red Cross uses forward change over contracts to hedge some of its known foreign exchange exposure. Transactions in foreign currencies are recorded at the rate of exchange prevailing at the date of the transaction, except where a forward contract is in place, in which case the rate specified in the contract is used.Monetary assets and liabilities are translated into sterling at the exchange rate ruling on the balance sheet date, except where a forward contract is in place, in which case the relevant asset/liability is translated at the rate contained in the contract. Foreign exchange gains are recognised as other income and foreign exchange losses are recognised in the consolidated statement of financial activities within the relevant charitable activity expenditure for the period in which they are incurred. 26 British Red Cross Trustees report and accounts 2011 27 Notes to the consolidated financial statements for the year ended 31 December 2011 2. Voluntary income Unrestricted ? Regular giving Public donations, appeals and fundraising Service donations Gift aid Legacies Disasters Emergency Committee appeals Grants Total 41. 9 19. 0 2. 4 12. 3 18. 8 94. 4 Restricted ? m 26. 0 0. 1 1. 8 0. 9 8. 3 37. 1 2011 Unrestricted Total ? m 41. 9 45. 0 2. 5 14. 1 19. 7 8. 3 131. 5 34. 6 17. 6 2. 4 10. 5 21. 5 86. 6 Restrict ed ? m 20. 7 0. 1 1. 8 0. 6 8. 4 1. 7 33. 3 2010 Total 34. 6 38. 3 2. 5 12. 3 22. 1 8. 4 1. 7 119. 9 Costs of generating funds Voluntary income Trading activities 44. 3 22. 9 67. 2 Charitable activities Emergency response and recovery UK International 23. 1 44. 6 67. 7 Resilience UK International 25. 8 10. 8 36. 6 2011 Total ? m 3. 9 3. 1 7. 0 14. 9 0. 6 15. 5 6. 9 14. 7 21. 6 8. 8 52. 9 2010 Total ? m 3. 0 6. 3 9. 3 Governance costs 0. 2 0. 0. 8 Health and social care Medical equipment services compassionate and support programmes 0. 3 3. 5 3. 8 Supporting the Movement Total 7. 2 15. 7 14. 7 14. 7 6. 6 11. 2 17. 8 1. 6 37. 2 0. 6 0. 5 1. 1 0. 3 3. 3 3. 6 6. 2 17. 2 14. 0 0. 2 14. 2 10. 7 10. 8 21. 5 1. 7 40. 4 14. 6 0. 7 15. 3 11. 0 14. 1 25. 1 7. 9 57. 6 Total 220. 6 10. 3 230. 9 199. 2 Subscriptions to Federation Staff Fees to auditors for audit of financial statements Fees to auditors for other services Other 1. 9 0. 3 0. 1 0. 2 2. 5 0. 1 0. 1 1. 9 0. 3 0. 1 0. 3 2. 6 1. 6 0. 6 0. 1 0. 3 2. 6 Health and social care Medical equipment services Care and support programmes 11. 8 25. 9 37. Supporting the Movement 8. 9 150. 9 0. 9 2. 7 3. 6 0. 1 8. 3 12. 7 28. 6 41. 3 9. 0 159. 2 16. 2 25. 2 41. 4 8. 3 132. 8 2. 1 0. 3 2. 4 27. 9 11. 1 39. 0 25. 2 11. 1 36. 3 1. 4 0. 8 2. 2 24. 5 45. 4 69. 9 20. 7 26. 1 46. 8 1. 2 0. 7 1. 9 45. 5 23. 6 69. 1 40. 3 23. 5 63. 8 4. Resources expended Direct costs ? m Support costs ? m 2011 Total ? m 2010 Total ? m Legacy income is not recognised until the British Red Cross has entitlement to the funds, the amount can be quantified and there is certainty of receipt. The estimated value of legacies, which have been notified but not recognised at 31 December 2011, was ? 7. 4 million (2010 ? 9. 2 million) of which ? . 4 million (2010 ? 6. 6 million) are assets bequeathed to the British Red Cross, but subject to life tenancy. Disasters Emergency Committee (DEC) appeal income is recognised to the extent that resources have been committe d on programmes funded through the DEC appeals. Subject to our agreed allocation, the value of DEC appeal income not worn-out down or accrued for at 31 December 2011 was ? 2. 6 million (2010 ? 5. 5million). 3. Incoming resources from charitable activities Grants ? m Emergency response and recovery UK International 0. 8 3. 1 3. 9 Resilience UK International Other ? m 3. 1 3. 1 Grants ? m 0. 2 6. 1 6. 3 Other ? m 2. 8 0. 2 3. 0 Supporting the Movement grant income is mainly from the Department for International Development (DFID). ?1. 2 million (2010 ? 1. 1 million) was received as part of our Partnership Programme transcription (replacing the Strategic Framework Agreement), which provides core funding for our international work to strengthen further the effectiveness of the International Red Cross and Red Crescent Movement as a key pillar of the international humanitarian system. ?6. 0 million (2010 ? 5. 1 million) was received as part of our institutional Strategy agreement with t he International Federation of Red Cross and Red Crescent Societies (IFRC), which provides funding for their programmes and operations.The charity v has supported our youth volunteering, prox Jobs Fund and National Citizen Service activities. The income for 2011 is ? 187,000 (2010 ? 90,000). The basis of allocation of support costs is described in note 1(d) and further analysis is provided in note 5. Our total resources expended includes irrecoverable VAT of ? 2. 9m (2010 ? 2. 1m). Included under 2011 direct costs are grants to the International Federation of Red Cross and Red Crescent Societies (IFRC) and International Committee of the Red Cross (ICRC) of ? 20. 1 million (2010 ? 19. 5 million) and grants to other National Societies of ? 22. 2 million (2010 ? 6. 6 million). 28 British Red Cross Trustees report and accounts 2011 29Notes to the consolidated financial statements for the year ended 31 December 2011 5. Support costs by activity Cost of generating funds Emergency respons e Supporting and Health and the recovery Resilience social care Movement Governance 2011 Total 2010 Total 7. Funds Balance 1 January 2011 Net investment gain / Expenditure (losses) Actuarial losses on defined benefit pension Balance 31 December Transfers 2011 ?m ?m ?m ?m ?m ?m ?m 2. 6 3. 7 3. 6 0. 4 ?m 2. 4 3. 6 Total UK restricted funds Total unrestricted funds ?m Income ?m ?m ?m ?m ?m ?m Finance Human resources and central facilities Management information services telephone exchange management Total 0. 8 0. 6 0. 4 0. 1 1. 9 0. 9 0. 6 0. 6 0. 1 2. 0. 5 0. 9 0. 9 0. 1 2. 4 0. 4 1. 6 1. 5 0. 1 3. 6 0. 1 0. 1 0. 1 0. 1 110. 4 163. 2 (172. 3) (1. 2) (1. 6) 98. 5 17. 1 9. 0 13. 3 22. 3 6. 0 45. 4 155. 8 3. 8 4. 9 14. 4 26. 9 46. 2 0. 6 50. 6 213. 8 (6. 8) (7. 2) (14. 2) (27. 4) (48. 8) (3. 0) (58. 6) (230. 9) 0. 1 0. 2 0. 2 0. 3 (0. 9) (1. 6) (0. 5) (0. 5) 0. 5 14. 2 6. 7 0. 2 12. 5 19. 4 4. 1 37. 7 136. 2 3. 4 0. 4 9. 8 Haiti earthquake Japan Other international restricted funds To tal international restricted funds Disaster Fund Total restricted funds Total funds 10. 3 Support costs have been allocated on the basis of the accounting policy set out in note 1 (d). 6. Trading subsidiaryBritcross Limited, the British Red Cross wholly owned trading subsidiary incorporated in the United Kingdom, engages in the sale of cards and gifts as well as corporate sponsorship in aid of the British Red Cross. The perturbation and expenditure included within trading activities are 2011 ? m employee turnover Expenditure Net income donated to British Red Cross The assets and liabilities of Britcross Limited consolidated within the balance sheet are Current assets Current liabilities Net assets 1. 4 (0. 9) 0. 5 2011 ? m 0. 8 (0. 8) 2010 ? m 1. 4 (0. 9) 0. 5 2010 ? m 0. 7 (0. 7) Restricted funds Expenditure plans have been agreed for all material restricted funds. Funds are held in appropriate asset categories in accordance with planned usage. UK restricted funds UK restricted funds include ? million of properties and other tangible fixed assets held for restricted purposes a variety of local, national and European funding sources to deliver projects over the next 2-3 years legacies with a geographical and/or service restriction. The balance of UK restricted funds is held for the provision of locally agreed services. International restricted funds Significant programmes of work are planned for the disbursement of international restricted fund balances as at 31 December 2011. Other international restricted funds include ? 2. 4 million of stock for international programmes ? 1. 5 million represented by net assets of the Overseas Branches. Disaster Fund The Disaster Fund allows us to prepare for and respond to humanitarian disasters abroad and in the UK.We fundraise specifically for the Disaster Fund and, as stated on emergency appeal materials, it can also contain funds donated to emergency appeals where we raise more than can be reasonably and efficie ntly spent on that specific response. 30 British Red Cross Trustees report and accounts 2011 31 Notes to the consolidated financial statements for the year ended 31 December 2011 8. Tangible fixed assets Freehold property ? m 45. 9 0. 1 2. 5 (0. 5) 48. 0 Vehicles, Assets in the Leasehold equipment course of property and furniture construction ? m ? m ? m 34. 2 0. 1 (0. 5) 33. 8 41. 2 0. 3 3. 5 (1. 1) 43. 9 0. 6 (0. 5) 2. 0 2. 1 Total ? m 121. 9 8. 0 (2. 1) 127. 8 9. InvestmentsFixed assets investments grocery store value 1 January 2011 Additions at cost Disposals at market value Net investment losses in the year grocery value 31 December 2011 Cost 31 December 2011 Total ? m 58. 0 3. 0 (11. 3) (0. 6) 49. 1 47. 1 Cost At 1 January 2011 Completions Additions Disposals At 31 December 2011 Accumulated depreciation At 1 January 2011 Charge Disposals At 31 December 2011 Net book value At 31 December 2011 At 31 December 2010 13. 1 1. 8 (0. 2) 14. 7 11. 6 1. 1 (0. 2) 12. 5 33. 4 3. 8 (1 . 0) 36. 2 58. 1 6. 7 (1. 4) 63. 4 The portfolio consists of the following UK equities Overseas equities UK fixed income Market value 2011 ? m 7. 8 5. 9 35. 4 49. 1 Per cent of Market value 2011 2010 portfolio ? m 16% 12% 72% 86. 0 6. 3 43. 1 58. 0 Per cent of 2010 portfolio 15% 11% 74% 33. 3 32. 8 21. 3 22. 6 7. 7 7. 8 . 1 0. 6 64. 4 63. 8 The following investments represented more than 5 per cent of the value of the portfolio at 31 December 2011 Lazard thematic planetary Institutional Share Class Legal & General CAF UK Equitrack Black Rock Ultra Short Bond Fund Number of units 67,350 12,988,700 287,196 Market value ? m 5. 9 7. 5 35. 4 Per cent of portfolio 12% 15% 72% Current asset investments Royal Bank of Scotland Global Treasury Funds plc BlackRock Institutional Sterling Liquidity Fund 2011 ? m 6. 2 6. 2 2010 ? m 4. 1 1. 0 5. 1 5. 4 0. 7 11. 2 Deposits Investment property in the UK Total 0. 4 6. 6 32 British Red Cross Trustees report and accounts 2011 33Notes to the consolid ated financial statements for the year ended 31 December 2011 10. Debtors 2011 ? m care debtors Accrued income Other debtors Prepayments Tax recoverable Legacies receivable Total 4. 6 6. 9 1. 0 3. 5 4. 4 10. 5 30. 9 2010 ? m 6. 5 4. 7 0. 4 3. 3 4. 0 10. 1 29. 0 At 31 December 2011 Amounts expected to be incurred within one year beyond one year 1. 1 1. 1 1. 3 1. 0 2. 3 2. 4 1. 0 3. 4 1. 1 2. 3 3. 4 At 1 January 2011 Payments during the year Increase in provision 12. Provisions for liabilities and charges Rehabilitation Leasehold commitments dilapidations ? m ? m 1. 2 (1. 2) 1. 1 2. 1 (1. 5) 1. 7 Total ? m 3. 3 (2. 7) 2. 8 All amounts shown under debtors fall due for payment within one year. 11.Creditors amounts falling due within one year 2011 ? m Trade creditors Accruals Other creditors Deferred income Taxes and social security costs Total 3. 3 12. 0 1. 2 1. 9 1. 6 20. 0 2010 ? m 2. 1 10. 9 1. 1 2. 0 1. 3 17. 4 The provision for rehabilitation commitments as at 31 December 2011 i ncludes amounts committed in Haiti for livelihood grants. Leasehold dilapidations relate to properties where the British Red Cross has a legal responsibility as tenant for such costs. 13. Staff emoluments and trustee expenses Total staff emoluments (including casual staff) for the year were as follows Salary costs National insurance costs Pensions costs 2011 ? m 68. 7 5. 1. 0 75. 6 2010 ? m 63. 0 5. 4 1. 2 69. 6 Movements in deferred income during the year were as follows At 1 January Income recognised during the year Income deferred during the year At 31 December 2011 ? m 2. 0 (2. 0) 1. 9 1. 9 2010 ? m 2. 6 (2. 6) 2. 0 2. 0 The number of employees whose emoluments, as defined for taxation purposes (basic pay, vehicle and medical insurance benefits), amounted to over ? 60,000 in the year were as follows ? 60,001 ? 70,000 ? 70,001 ? 80,000 ? 80,001 ? 90,000 ? 90,001 ? 100,000 ? 100,001 ? 110,000 ? 110,001 ? 120,000 ? 170,001 ? 180,000 ? 180,001 ? 190,000 2011 6 6 3 5 1 2 1 20 10 8 6 5 2 1 1 1 Five (2010 five) of the above employees have solitude benefits accruing to them under defined benefit pension schemes. The total cost of the contributions to these defined benefit schemes made by the British Red Cross for these employees was ? 106,000 (2010 ? 94,000). xiii (2010 fourteen) of the above employees are members of a defined contribution scheme. The total cost of the contributions to this scheme made by the British Red Cross for these employees was ? 81,000 (2010 ? 61,000). 34 British Red Cross Trustees report and accounts 2011 35 Notes to the consolidated financial statements for the year ended 31 December 2011 13. Staff emoluments and trustee expenses (continued)The reasonable number of full-time equivalent staff sedulous by the British Red Cross during the year was as follows In the UK Fundraising Retail UK services First aid services International services Other Overseas International services Total employed by FTE Total employed by headcount The average number of volunteers working for the British Red Cross during the year was as follows In the UK Fundraising Retail UK services First aid services International services Total Trustees expenses Expenses incurred by trustees and reimbursed by the British Red Cross Expenses incurred by the British Red Cross on behalf of trustees Trustees indemnity insurance cover cost 2011 171 547 1,475 405 72 280 65 3,015 3,547 2010 147 544 1,417 379 66 249 54 2,856 3,364 14. PensionsNew British Red Cross staff are entitled to join either the Pensions Trusts Unitised Ethical Plan or the Pensions Trusts Flexible Retirement Plan. Staff had previously been entitled to join the British Red Cross Pension Fund (UK Office scheme), Scottish Branch British Red Cross Society Retirement Benefits Scheme (Scottish scheme) or the Pensions Trusts Growth Plan. These three schemes are all closed to new entrants. UK Office and Scottish defined benefit pension schemes The assets of these pension schemes are hel d in separate trustee-administered funds. The schemes are subject to triennial valuations with the last full valuation being carried out as at 31 December 2010 for the UK Office scheme and 1 January 2009 for the Scottish scheme.These valuations were updated at 31 December 2010 and 2011 by independent actuaries on a Financial Reporting Standard 17 Retirement Benefits (FRS 17) b