trustee report accounts 2013

Annual Review 2012/13

www.sensescotland.org.uk

Registered as a company limited by guarantee in Scotland 147570. Registered Scottish Charity SC022097.

Trustees' Report and Financial StatementsFor the year ended 31st March 2013

senseScotland

Trustees' Report andFinancial StatementsFor the year ended si" March 2013

Registered asa company limited by guarantee in Scotiand 147570Registered ScottishCharity Number SC022097

Trustees' Report andAccountsfor theyearended 31 March 2013

Contents

Introduction 3Legaland Administrative Information 3Structure, Governance & Management. 4Objectives and Activities 7Achievements & Performance 10Fundraising Performance 16Trading Performance 16Financial Review 18Strategic Planning Process 19Statement on disclosure of information to the auditors 20Statement of Trustees' responsibilities in respect of the Annual Report and the financial statements............................................................................................................................................................... 20

Auditors 20Independent Auditors' Report to the Trustees and Member of SenseScotland Limited 21Income and Expenditure account for year ended 31 March 2013 23Statement of financial activities for the year ended 31 March 2013 24Balance Sheet as at 31 March 2013 25Accounting policies 26Notes to the financial statements for the Year ended 31 March 2013 29

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ChairmanVice ChairmanTreasurerDepute Treasurer Appointed 13th September 2012

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Trustee's Report

Introduction

The Trustees, who are also directors under the Companies Act, have pleasure in presenting theirreport together with the audited financial statements of the charitable company for the year ended31 March 2012.

Legal and Administrative InformationCharity Name: SenseScotlandCompany Registration Number: 147570Scottish Charity Number: SC022097Registered Office Address: 43 Middlesex Street, Glasgow G411EECompany Secretary: John O'Connor

The Trustees who were in office during the year and up to the date of signing the financial

statements were:

Roy CoxNeil FarquharsonDouglas SmartGerard SeenanDavid NewtonDuncan TannahillIsobelAlianNorman RitchieUsman RehmanGary SimpsonEileen Henighen

Directorate team

Andy Kerr, Chief Executive OfficerLinda Annan, Director of OperationsJohn O'Connor, Director of Corporate Affairs & Company SecretaryEddie McConnell, Director of External Affairs

Independent Auditors

PricewaterhouseCoopers LLP141 Bothwell StreetGlasgow G2 7EQ

Solicitors

MacRobertsExcel House30 Semple StreetEdinburgh EH38BL

Bankers

Bank of Scotland38 St Andrews SquareEdinburgh EH2 2YR

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Structure, Governance & Management

Constitution

SenseScotland is a charitable company incorporated as a private company limited by guarantee. Thesole member is Sense, the National Deafblind and Rubella Association, which itself is a charitablecompany incorporated in England.Sense Scotland was established as a charitable company in November 1993 and is governed by aMemorandum and Articles of Association under the Companies Act.

Governance

A substantial review of the Governance of SenseScotland took place in 2012 and as a result aGovernance Handbook including a new sub-committee structure was approved at the September2012 AGM. The approved governance structure is as follows:

• The governing body of the charity is known as the Board of Trustees, (the Board) Thenumber of trustees will be determined by the the Board with a target of between 10 and 12.The Board meets four times each year.

• There are four Board sub-committees as follows:

o Finance Committee.Purpose: to ensure that financial resources are being employed appropriately infurtherance of strategic objectives.

o Audit and RiskCommittee:Purpose: to monitor and review the effectiveness of internal and external auditingprocedures and outcomes, advising and reporting to the Board.

o Remuneration Committee.Purpose: to ensure that both the remuneration strategy and its implementation isperceived by all to be transparent, fair and effective.

o Nominations Committee.Purpose: to identify any skills gaps in the Board membership, oversee therecruitment processes of Board members and make recommendations to the Boardof new Board members for election or co-option.

Trustees are inducted into their role primarily through a Trustee guidance file. New Trustees meetwith the Chairman and the Chief Executive Officer where the guidance is outlined to them. TheTrustee guidance folder includes details of the regulations Trustees operate under, guidance on goodTrusteeship, the role of a Trustee, the organisation structure, and an outline of organisationalprocedures. In addition there is an induction DVDfor new staff that Trustees have found useful, alongwith a DVDon the TouchBase resource.The Board has established six senior groups comprising the Leadership Team, the Directorate, thePartnership Forum, the Operations Group, the Internal Policy Group and the Public Policy Group.There are a number of other working groups to help with the day-to-day running of the charity.The Trustees who held office during the year are set out on page 3. The Trustees have the powersand obligations of directors under the Companies Act. The appointment of Trustees is determined bythe existing Board members at each Annuai Generai Meeting. Trustees can also be co-opted to theBoard during the course of a year by the existing Trustees. After confirmation of a Trustee'sappointment at the AGM, Trustees may serve for a period of four years. They may then stand for afurther four years after which any further service will be on the recommendation of the NominationsCommittee.The Chief Executive, Director of Operations, Director of Corporate Affairs and Director of ExternalAffairs attend every Board meeting and are informed of decisions made by Trustees. Updates fromthe Board are provided at Leadership Team meetings. All Leadership Team members meet as aminimum once a year with the Trustees.

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Management - Organisational Structure

The diagram below sets out the organisation structure in terms of operational management andreporting:

Andy KerrChiefExecutive Officer

I ILinda Annan John O'Connor Eddie McConnell

Director Operations Director Corporate Affairs Director External Affairs

Within Operations, the management of services Issplit geographically into North Eastof Scotland,Eastof Scotland, Central Scotland and West of Scotland. Each has a Head of Operational Services.These regions are split into areas and services are organised across particular localities. Area andlocality Managers are In place for housing support services. Registered and Depute managers are inplace for registered locations such as respite services and residential care homes. We also haveservices operated and managed from TouchBase In Glasgow, again under a Head of OperationalServices.

Risk and internal control

The Trustees have carried out a risk assessment exercise during the year and are satisfied thatprocesses and procedures are in place to monitor and measure potential risks to the charity. TheBoard has on two occasions discussed our approach to risk and has agreed the Annual Risk Register.As stated previously, SenseScotland has established an Audit and RiskCommittee which has furtherstrengthened the approach to and governance of risk within SenseScotland.We continue to monitor local authority efficiency savings requirements which present a challenge tothe financial health of the organisation and are taking steps to minimise their effect on the quality ofservices and staffing.

Employee involvement and employment of disabled people

The Trustees remain committed to employee involvement. This is in part achieved through thepartnership work with the trade union Unite and other elected staff representatives. We continuedto expand this over 2012/13 by developing staff representation through the Partnership Forum,which as a minimum meets three times a year.All staff representatives have a dedicated email address and mobile phone to assist with their roleand to allow for more effective representation of their staff constituencies. We have also requestedand received personal email addresses from employees and send out newsletters and other relevantinformation about the organisation's activities.The headcount of employees (excluding volunteers) increased slightly from 1003 in April 2012 to1041 in March 2013, and the majority of our contracts for services have retained relatively stablestaffing levels.Staff retention rates have been maintained at a relatively high level over the past year, with theturnover rate remaining at 11.6% in March 2013, exactly the same rate as in April 2012. TheChartered Institute of Personnel Development, CIPD, (2012 Survey) records a UK wide figure for thevoluntary sector of 13%, and the Central Scotland Voluntary Sector Network (2011 Survey) alsoshowed average turnover of 13%, so SenseScotland compares favourably with these benchmarkfigures.Staff attendance rates have also improved slightly, with staff absence reducing from 4.07% in April2012 to 4.04% in March 2013, having dipped below 4% in December 2012. The CIPD 2012 absencesurvey showed absence as3.4% of working time lost across all sectors, with the Not for Profit (Care)Sector level at S.9%. The Central Scotland Voluntary Sector Network (2011 Survey) showed a medianabsence level of 4.9%, so again SenseScotland compares favourably with these benchmark figures.

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We currently employ 24 (2.3%)staff who consider themselves to have a disability.We have 346 volunteers, an increase from 294 at the end of the previous year, due to the continuingsuccess of the One Giant Leap and other volunteer projects, and there are 22 Service Users in someform of permitted paid employment, an increase from 16 last year.

Training and Development

SenseScotland has, once again, increased its investment in training and skills development and awide range of initiatives have been launched to support service users, families and, of course, ourstaff teams across Scotland.

Service Users

We now have lead co-ordination roles established in the East and West for ASDAN awards for serviceusers. Twenty-five service users have now embarked on award programmes in either 'TowardsIndependence' (independent living skills) or 'Workright' (employability). A further group of supportstaff have been trained as assessors to work alongside service users. The programme is clearlypopular with service users. It has also provided a motivating framework for the support workersinvolved. Activity has increased in the East, with plans to develop the programme further in theNorth-East as soon as practicable.

Families and Carers

TLC has been working in collaboration with the Parent Enabler Project team to develop training andinformation sessions for families and carers. Following a successful workshop on our ASDAN awardsprogramme, the most urgent topic has been challenging behaviour. Our first family training sessionon this topic is planned for May 2013. This will be followed by workshops on a range of related topics,as prioritised by parents, themselves.

Staff

Scottish Vocational QualificationsAs reported last year, we have been supporting over a hundred staff to gain SVQawards in Healthand Social Care. Fifty-five staff completed awards this year - more than the previous four yearscombined. To support this programme we have also launched an SVQAssessors qualificationprogramme (SVQ3 Learning and Development Award) and made one of the Assessor/Verifiersecondments a permanent post. A second Assessorsecondment for the Eastand North-East is beingplanned to commence in July 2013. Our Centre has received excellent feedback from SQAwho havevisited in the past year to inspect our quality systems for all awards. We currently have approximatelyone hundred staff undertaking SVQHealth and Social Care Awards acrossScotland.In addition, we have contracted with Reid Kerr College to provide SVQs in BusinessAdministrationand Management at levels 3 and 4 for five of our senior administration management colleagues. Thisis going well and we hope to expand these training opportunities for non-operational staff in thesekey supporting roles over the coming year.

Other Training and Learning

The SenseScotland Business School's Professional Manager Programme has now completed for athird of the cohort of eighty managers. The remainder will complete during 2013. This has proved tobe a highly motivating course which has already provided good evidence of a positive impact onmanagement approaches and outcomes.Following the planned introduction of a first line manager 'Supervisor' grade across our Operationalservices, TLC has planned a professional development programme for this group of sixty staff. Theprogramme includes a five day course on the role of supervisor - giving them the tools they need tosupport the development of new staff. This will be followed by a course which will gain participants aPDASupervision award. This professional management qualification will be a requirement of theirSSSC registration asSupervisors and is being delivered in collaboration with our colleagues atDeafblind Scotland. Further development opportunities will be offered via The SenseScotlandBusinessSchool.Induction and foundation training has been reviewed, updated and expanded in order to increaseskills in communication with, and personalisation outcomes for, individual service users. We haveSense Scotland Trustees' Report and Accounts Page 6 of37

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also increased emphasis on essential health and safety training topics to ensure that all staff areoperating safely and within the law.Day to day administration and co-ordination of training events had been managed regionally but thishas now become a core TLC team responsibility. This will free up considerable time for localadministrators to offer increased support to operationai services and managers. TLC has appointed anew administration assistant to absorb this additional responsibility.Our fourth Annual Staff and Volunteer Awards evening was planned by the TLC team with supportfrom colleagues in other departments. This year over 240 people attended. The Deputy First Ministerjoined us to celebrate the first group of managers who completed The Professional Manager coursewith our BusinessSchool.

Objectives and Activities

Our Vision

Our vision is for the people we work with to live meaningful and independent lives in a world whichsupports them to achieve their own ambitions.

Our Mission

SenseScotland will work in partnership to support and promote the interests of children, youngpeople and adults who have communication support needs arising from a range of disabilitiesincluding, but not limited to, deafblindness, sensory impairment, learning or physical disability.We seek to lead the field in communication support and innovative person centred support servicesfor people who are marginalised because of the complexity of their support needs, their health carerequirements and their behaviour which, at times, can be challenging of conventional service models.We aim to provide services which provide choice and continuity across all age groups and workclosely with the individuals we support, their families and carers and with professionals working inour field.

Our Values

• Be open and honest• Recognise individual worth• Build relationships through trust• Act on the basis of individuals aspirations and needs• Be accountableThesevalues apply to us all, staff, trustees, volunteers, service users, families and carers and othersthat we work with and are an integral part of our induction and training, our communications,working policies and staff appraisal.

Our Personality and Specialism

SenseScotland is a charity and social enterprise founded upon relationships, communication andinvolvement with service users and families, we solve problems that others will not, and we work to amoral and ethical framework.We wish to be a trusted and respected organisation which is inclusive of those we work with, theirfamilies and carers and our staff. We will retain that personality into the future despite the challengeswe face.We work with individuals who have complex communication support needs due to a combination of:• learning and physical disabilities• sensory impairment including deafblindness

• autism• complex health care needs• mental heaith needsWe have many years' experience of working successfully with people whose behaviour oftenchallenges conventional service models. We have developed expertise in supporting individuals,whose behaviour can be challenging, to access a wide range of community activities.Our aim is to develop good communication partnerships with all people, including individuals usingservices, their families, staff and external colleagues. This is central to our approach in working with

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people and often involves enabling the individual to develop alternative communication skilis andstrategies.We take a risk enabling approach and believe that developing good communication skilis with peoplehelps to achieve the necessary baiance through supporting choice at the same time as minimisingrisks to safety.We have an inclusive and engaging approach with people using services, supporting them to beinvolved in campaigning work to inform legislation and welfare reform and improve services,ensuring their voices are heard at local and national government levels.

Our Main Activities

The main activities undertaken by the charity continue to be the provision of care and housingsupport under contract with local authorities and other statutory bodies across Scotland. Theseservices take the form of residential care homes; residential respite for adults and children; daysupport services for children; day support resources for adults, and housing support services. Thisconstitutes our main focus but we also provide added value services funded from donations andgrants, such as our advisory services for families and carers; health and healthy living information;public policy development; holidays and outdoor activities, as well as providing creative opportunitiesfor service users in the form of art, music and drama.

Our Strategic Objectives for 2013 - 2016

• We will support service users and families to be active and involved

• We will lead in the provision of high quality service provision and service development

throughout Scotland and internationally

• We will grow in order to provide more services to more people

• We will be the employer of choice, recognised for our commitment to staff development and

training.

• We will harness the views of those we serve and support them to organise and campaign

• We will work and grow sustainably

The charity works to a rolling three-year strategic plan. All stakeholders are involved in thedevelopment of the strategic plan and the Trustees approve both the three-year strategic plan andthe annual operational plan. The annual budget is also approved by the Trustees, and both the planand the budget are evaluated at the Annual General Meeting.

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Key Performance Indicators

We will support service users and families to be active and involved

• We will encourage participation through;• Family Forums• Surveys• Regular meetings and discussions

• We will involve service users and families in our Quality Assurance Programme• We will work with service users and families through our Advisory Services• We will support service users through our ASDAN centre

We will lead in the provision of high quality service provision and service development

throughout Scotland and internationally

• We will develop our approach to Personalisation/SDS by;• Implementing the Progress for Providers approach• By adopting Outcome Based Support Plans for service users

• We will grow and develop services across Scotland• We will Implement the Sense Scotland Quality Assurance Programme• We will use innovation to benefit the people we work with• We will promote and share best practice

We will grow in order to provide more services to more people

• We will grow the TouchBase model• Scotland Wide• TouchBaseGlasgow

• We will develop a Strategy for Ageing• We will develop Holiday, Arts, Outdoor and Adventure Support Packages• We will our Emergency Respite services• We will increase our use of social media• We will invest in our shops and on line trading activities

We will be the employer of choice, recognised for our commitment to staff development

and training.

• We will invest in management skills and development• We will promote the NEST pension scheme• We will develop and expand our SQAcentre• We will adopt 360 appraisals• We will continue to invest in staff communication and engagement

We will harness the views of those we serve and support them to organise and campaign

• We will campaign on the issuesaffecting our service users• We will support our families and service users in the campaigns• We will continue to respond to policies which affect our families' and service users

We will work and grow sustainably

• We will establish our Environmental Footprint• We will improve our recycling• We will reduce our energy use

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Achievements & Performance

We will support and develop positive health and wellbeing for service usersand staff

• We established the Health and PhysicalActivities Team which brought together outdooractivities, walk leaders, the health advisor and Rebound therapy into one team.

• A healthy eating cookery group was set up in Glasgow, using the kitchen facilities atTouchBase.Through this group 7 service users have been supported towards completing anASDAN award in meal preparation and cooking.

• A pilot audit tool looking at oral and dental health was developed in partnership with aparent. An initial audit was completed in 3 regions across the country. Findings from thesepilot audits will be used to inform any required future developments in this area.

• Two walk leader posts, supported by funding from the Forestry Commission, wereestablished in the west of Scotland.

• Funding from the Scottish National Heritage continued to support a part time walk leaderpost in the North East Region and funding from Paths 4 All supported a 2 day/week walkleader post in the Dundee and Fife areas.

• A climbing wall group offered 'taster' sessions using adapted equipment funded by the ColinHerridge Foundation.

• One service user was supported to attend the annual "Week 11 Winter Week" in Norway.This provided the individual with the opportunity to ski, ride a snow scooter, cook over anopen fire and meet new friends from Norway.

• With money from Awards for All we were able to purchase additional equipment for theadapted bike project. This included additional adapted bikes, a trailer, tow bar and helmets.The purchase of this additional equipment has allowed people from across the country toaccess this equipment and to enjoy the cycling experience.

• Medication audits are now included as an integral part of the Quality Audit Programme.

• The now annual event at Lochore Meadows in Fife, run in partnership with Pamis, offeredindividuals and their families the opportunity to cycle using adapted bikes and enjoyaccessible walks through the country park.

• The gardening project based in Forfar continues to be a great success with real individualachievements. This has included a service user who managed to build planters using therecycled wood from his old bed frame.

We will develop opportunities for service users, families, and staff

• A range of social events were held across the country including Lochore Meadows in Fife, theLuv Fete at TouchBase, Burns Night in Auchtermuchty, and in Glasgow Summer Sensations,On Your Radar and the Christmas Concert at the City Chambers.

• A short breaks project, funded through Better Breaks, offered a range of social and leisureactivities to young people in the East, for two, 2 week periods in the summer of 2012 . Thefeedback from both young people and their families deemed the project to be a hugelyvaluable and successful experience. The management and staff team from Dundee ShortBreaks who planned and ran the project were recognised for this achievement by being votedas SenseScotland 'Team of the Year'.

• Further funding was received from both Better Breaks and Creative Breaks to supportfamilies and individual children access a break of their choice. Some of this funding hasalready been awarded to families through an allocation panel but much of it will be for useduring 2013/14.

• Funding has also been received from Children in Need to start both a Brownie and Scout packwhich will be based in TouchBase. Initial work has taken place with Brownie and Scout



leaders to take this forward, with the timescale for the first meetings now planned forSeptember 2013.

• Service user consultation groups were established in both the North Eastand East Regions.

• A social club for people aged 16 + began as a pilot in March 2013. This development issupported by staff on a voluntary basis and offers individuals an opportunity to cometogether on a regular basis to listen to music, dance and to generaily have fun. It is plannedthat the club wiil continue to run on the first Thursday of every month.

• The Arts team led a number of projects during 2012/13 across the country. These includedthe Youth Music Initiative, Positive Destinations, Big Draw, Impact Arts, Radio Group andSense has Got Talent.

• With the planned development of the new arts space at TouchBasea participatory projectknown as 'TouchBase Interiors' was set up for 6 months over late 2012/13. The project wasled by an interior designer and saw the involvement of service users, staff and families inplanning for the decoration and furnishing of the new art rooms. This included the furnitureproject which created bespoke furniture through the creative renovation of old pieces offurniture.

• A number of exhibitions of art work were held over 2012/13 which included the Schools andSpin exhibitions at TouchBase and 'It is is it' at the Kelvingrove Museum in Glasgow.

• A sensory mapping project funded by Creative Scotland and Scottish National Heritagecommenced early 2013. This project when complete wiil enable a smail group of service usersin the North, East and Central Regionsto explore an area within their environment and thencreate a sculpture which reflects their experience

• The new Arts space at TouchBasewas completed at the end March 2013 and work will nowbe on-going over the next few months to make this space available for use by individuals andgroups for a range of art, music and drama activities.

We will actively promote a culture of high standards andquality

Training and learning Centre Activity

• This year we have continued our focus on essential skiils training - especiaily in relation tosafe practice topics. We have reviewed our induction and foundations skiils trainingprogrammes for new staff and added new courses covering communication, activities,outcomes and personalisation. We have also been planning a new series of courses forSupervisors. The new induction and foundation programme aiso provides a more sustainableapproach to the delivery of essential health and safety training. This has been aided by thewelcome addition of a fuil time training officer who has been seconded to TlC.

• Our e-Iearning programme has continued to grow with hundreds of courses being completedby staff and volunteers. The quality of materials and flexibility of e-Iearning has proved bothpopular and useful. We are currently in discussion with a not for profit e-Iearning providerwho we hope will be able to assist with the development of new e-Iearning courses, tailormade for Sense Scotland.

• Most of our operational managers have now completed IOSH training and we are planningfor a further series of courses over the coming months which wiil involve practitioners andsupervisors in our operational services.

• As our work with people with autism continues to grow we have added Autism Awarenesstraining to our induction courses. We are working with Alzheimer Scotland regardingdementia awareness resources and courses which will roil out later in 2013. This is of coursean issue for our ageing service user group. There are also particular associations withdementia for people who have Down Syndrome which we need to respond to.

• The SenseScotland Business School has enroiled over 80 staff onto our 'ProfessionalManager' course. This course is delivered in association with specialist trainers, LOAAssociates. This ten day course has had exceilent feedback from participants, particularly inrelations to change management and time management. This opportunity to reflect has led



to new and innovative approaches to a range of issues. It has also established a solid,supportive peer group.

• During 2012-13 more than forty staff completed SVQs in Heaith and Social Care at levels 2and 3. We currently have 119 staff working towards professional qualifications via ourTraining and Learning Centre. To accommodate this growth in learning and deveiopmentactivity our seconded Assessor/Verifier has been made a permanent member of TLC with afurther Assessor secondment for East and North-East services being planned.

• We have planned a programme for Supervisors to gain a PDASupervision Award later in2013. This will ensure that Supervisors meet their SSSC qualification and registrationrequirements

Vocational Qualifications for Service Users

• We were approved as an ASDAN Centre in September 2010 and twenty-five service users arecurrently working towards awards. The Training Co-ordinator is now acting as nationalASDAN co-ordinator and award verifier. This will enable us to further increase ourcommitment to these awards. The ASDAN Co-ordinator has also begun liaison with theFamily Advisory service, facilitating discussions around ASDANs for future users of ourservices.

Social Work Students

• We continue to offer Social Work student placements (both short term observation and longterm assessed practice) at TouchBase. A further six students were supported in 2012-13 inboth long and short term placements. As well as being a great opportunity for both studentsand staff these placements earned additional income to supplement out training budget.

• We have also hosted a group of seven Social Care students from Germany, funded via theMobility International scheme. Students were placed in services in Glasgow and both ourstaff and the students found this to be a rewarding practice sharing experience.

Staff and Volunteer Awards

• The staff and volunteers Awards Ceremony 2012 was another great successwith over 180staff, volunteers and families in attendance. Recognition was given to those with long service,for team of the year, to those gaining qualifications and for those who had been nominatedby colleagues for their inspiration to others.

We will promote an efficient and effective organisation at all levels

The focus on staff recruitment and retention continued.

• Staff totals: Excluding volunteers, our headcount has increased from 1003 in April 2012 to1041 in March 2013. The full time equivalent staff at the end of March was 694 compared to648 the previous year.

• Continued efforts to manage attendance, as well as the changes to sick pay entitlements inrecent years, have resulted in absence rates being controlled at a steady level, showing adecrease from 4.07% in March 2012 to 4.04% in March 2013. UK-wide, The CharteredInstitute of Personnel and Development (CIPD) 2012 survey showed absence as 3.4% ofworking time lost across all sectors, with the Not for Profit (Care) Sector level at 5.9%. TheWest of Scotland Voluntary Sector Network survey 2011 showed a median absence level of4.9%.

• Almost three quarters (up from over 60% last year) of applications were received using ouron-line application system. This has resulted in substantial savings both in staff time andother resources such as application forms, information packs and postage.

• Disciplinary investigations reduced to 30 in the year April 2012 - 13, down from 42 last year,and almost half the number (55) compared to 5 years ago.

• Staff turnover was 11.6% for the year April 2012 - March 2013. In a survey of the voluntarysector network in the Scottish central belt, the average turnover was 13%. A UKwide survey


Trustees' Report and Accountsfor theyearended31 March 2013

by the Chartered Institute of Personnel and Development gave an average turnover for thevoluntary sector as 13%.

• The proportion of applicants for employment with a disability decreased slightly to 4%, andthe proportion of staff who consider themselves to be disabled was 2.3%.

• Increased pension savings provision for staff continued during the year, with almost 80 staffnow enrolled in the NEST Stakeholder Scheme or the SenseGroup Personal Pension Plan,with employer contributions continuing at 1% of salary.

• A one-off payment of £300 (for full-time staff, pro-rata for part-time staff) was paid to allstaff in December salary payments.

• Arrangements for registering new staff who undertake regulated work in the new ProtectingVulnerable Groups (PVG) Scheme were continued, and the retrospective checking of existingstaff was commenced, beginning with the enrolment ofTrustees.

• Revised operational staff designations were discussed and introduced, providing clearer jobroles and career structure for staff, and more support to achieve qualifications. In particular,a new Supervisor role was introduced, along with guidance and training for thoseundertaking this Important new role.

• A series of HRBulletins and People Matters best practice guides were issued to Managers,containing Information and advice on conditions of service and handling a range of HRissues.

• Training for managers in Managing Attendance and using the new Competency Framework(see below) was carried out during the year.

• A revised Competency Framework was introduced, providing a range of competencies forassessment during recruitment and selection and for performance management purposes.

• 360' Appraisal was introduced as part of the performance review process, beginning with theChief Executive and Directorate.

• A new Team Briefing process was introduced, with monthly core messages from theDirectorate being communicated to all staff through meetings and direct transfer ofinformation.

Staff satisfaction and engagement survey:

• The annual staff survey was carried out again in January 2013. The survey consisted of 46questions covering such areas as communication, work-life balance, training anddevelopment and pay and benefits. Over 23% of staff (242 - up almost half from 164 lastyear) completed the survey.

• Overall, this year's survey again found relatively high levels of staff satisfaction with SenseScotland as an employer, with the exception of pay and benefits.

We will work in partnership with service users, families and staff to influence,drive forward and respond to change.

We work with families to ensure their views are included in responses to government consultations.A family member sits on the Public Policy Group. Families have many other priorities and weappreciate very much the contribution they continue to make. We continue to advance joint workwith Disability Agenda Scotland, The Coalition of Care and Support Providers Scotland and otherpolicy networks.We held a carers' day event in June 2012 and included sessionson carers' rights and the impact ofWelfare Reform. During the year, we also held family forums related to the latter issue on:

• Scottish passported benefits

• independent living Fund

• In addition to Welfare Reform, a number of policy issuescontinue to dominate concerns forthe people we support:

o Self Directed Support and the way it is being implemented in some areas

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o Charging for services

o Cuts in services

o Increased eligibility criteria making access to any services at all more difficult.

Our public profile is developing with a greater focus on producing consistent and professionalmessages and material which promotes the organisation and its values through the voices of thepeople we support. This includes managing production of new leaflets, posters, online content, socialmedia and advertising materials. We have already produced a new Self Directed Support Leafletwhich allows all staff to respond effectively to requests about how we can support people. A family ofleaflets promoting the various aspects of our services are currently being developed.The Annual Review was made as a digital version and shared with families, carers and key influencers(including Councillors, MPs, Scottish MPs CEOs and Local Government Senior Officials). A digitalmailing was sent to over 1,100 of these key contacts, tapping into a new contact group and spreadingawareness of the organisation.Website content is a hugely important vehicle and 'shop window' for the organisation.Communications can now set up and manage a media launch, get photos from the event and havecontent published and posted onto the website in the same day.Main feature stories over the year have included:

Dundee and Ayr shops launched by people supportArt mural in Saltcoats cafeHome - report on premiere from our theatre grouplY Advert- promotion of our SlY online fundraising advertSk x 50 fundralsing by Directors, celebrated by people we supportHardest Hit campaign video (produced by SenseScotland) storyFunding for arts' Sensory Mapping announcedLUV Fete 2013 promoted

Facebook reach continues to grow, with fund raising events, updates on policy/welfare news, andwhat people we support have been doing as the main content. We had over 1,100 likes at the end ofthe year compared with over 6S0 in the previous year. Twitter has over 1,200 followers, well up onlast year's figures.Traditional print media presence continues, especially through local press,with stories/coverageacrossScotland including: Aberdeenshire, Ayrshire, Dundee City, Glasgow City (various), North andSouth Lanarkshire, East and West Dunbartonshire, Highland and Renfrewshire. We also achievedsignificant feature coverage in Daily Record and Evening Times stories - on families we support, artsactivities and events. This coverage had a combined reach of around around 300,000 in circulationterms across the country. Based on Newspaper Society figures this coverage has an advert spaceequivalent value of at least £3S,300 across the country (not all advertisement costs were available,and so the real equivalent is likely to be more). Communications also secured coverage on InsightRadio, Sunny Govan Radio and supported a recruitment radio campaign in Aberdeenshire. Thesubjects of coverage roughly related to:37% - Fundraising donations/events17% - Service/family news17% - Shops (including local service related involvement)14% -Arts6% - Policy/campaignsRemaining percentages related to either job promotion campaigns or campaigns SenseScotlandcontributed to but weren't named in - eg: the Hardest Hit campaign)Communications, as part of External Affairs, works through the Public Affairs team and continues towork closely with Media Production resources in producing high quality promotional films, includingthe 'Fitting Around You' personalisation/SDS film. Communications continue to provide crisismanagement support and cover out of hours enquiries and information support.

We responded to a numberof consultations on a range of issues:

• SQAexam arrangements

• Charter of Patient Rights and Responsibilities

Sense Scotland Trustees' Report and Accounts Page 14 0137

Trustees' Report and Accountsfor the year ended 31 March 2013

• Responsible Parking (Private Member's Bill)

• PIP detailed design

• Family Fund expert reference group

• Children and Young People's Bill

• Passported Benefits Scotland

• Independent Living Fund

• BSL Bill

• Discretionary Housing Payment

• Integration of Health and Social Care

• Procurement Reform Bill

• SDS Bill amendments

We gathered views via a range of routes, including Family Forum meetings, and contributedresponses through written responses (individual and jointly with other organisations) and attendanceat events.


Trustees'Reportand Accountsforthe yearended 31 March 2013

Fundraising PerformanceIn 2012/13 total fundraised income amounted to £2,718,483, in an uncertain and unstable economicclimate this was a significant achievement.

SenseScotland's supporters went to great lengths to ensure that fundraised income remainedhealthy and buoyant, in spite of the challenging economic climate. Untied donations raised£1,519,619 which is an outstanding 27% over budget. Our thanks go to each and every one of ourdonors and supporters who helped to make this happen.

Committed giving via regular monthly gifts from our donors continues to be the most sustainable andsecure form of fundraising for SenseScotland and is the mainstay of our fundraised income. In thisfinancial year we raised £781,198 from donors giving a monthly gift. Committed Giving has grownconsiderably over the last few years and in 2012/13 over achieved on budget by 65%. This is due toour continued investment in our donor recruitment campaigns, without this investment, we couldnot achieve such remarkable fund raising growth.

Special Campaign income and investment was down slightly by 4.3% to £236,274. As part of ourstrategic plan and commitment to the ethos and values contained therein, we will grow in order toprovide more services to more people. We remain committed to these campaigns as a means toincrease our ability to grow and develop our donor and supporter base.

In 2012/13 we raised £630,139 from a number of statutory sources. Incorporated into this amount is£92,800 received from the Scottish Government to establish our Partners in Communication Projectand £57,914 from Big Lottery Fund towards our One Giant Leap project. A major gift of £200,000 wasaiso received from the Weir Charitable Trust.

Legacyincome dropped by 22%to £286,521 during 2012/13 but still accounted for 11% of our overallfundraised income.

Events this year included our first ever bungee jump, enjoyed by 30 adventurous people, generating£3,400 in untied income. It was a year of firsts for SenseScotland events team, as we went ontohold our first ever Christmas Concert in Glasgow City Chambers, with the hire ofthe venue kindlydonated to us by Glasgow City Council. Events income remained stabled, with 208 eventsparticipants taking part in a variety of events, raising £109,191 in total.

Income from grant making trusts continues to provide a valuable contribution to our overallfundraised income. We were delighted to receive Trust funding of £7000 for our Dundee MusicProgramme from The RussellTrust; Margaret Murdoch Charitable Trust, William S Phillips Fund andAlexander Moncur Charitable Trust. Another highlight was £16,000 from The Robertson Trust perannum to support music programme, also in Dundee.Corporate support came from Mail Marketing, who adopted SenseScotland as their charity of theyear, raising £13,583 by undertaking a number of challenges including running the New YorkMarathon and walking the Great Wall of China. We were also grateful for the on-going support ofWilson Andrews, whose staff generously donate via their in-house payroll giving scheme to SenseScotland and are always on hand to offer support to our Christmas events and celebrationsthroughout the year.

Trading PerformanceShops income for 2012/13 was £1,277,521, exceeding last year's income by almost 14%. Wegenerated net income of £155,316. Gift Aid income on donations was £64,551, an increase of 36% onthe previous year, a very welcome source of income. During the year we opened shops in Ayr, Airdrieand Dundee, bringing the total number of shops to 20, and double that of three years ago. We havebegun trading on eBay, selling collectables and vintage items.Trading still remains challenging, in particular obtaining sufficient quality stock, this and other tradingissueswill be addressed in a new trading strategy to be introduced in 2013. Staff and volunteersraised £12,525 for SenseScotland during this year's shops fund raising challenge. The shops aresupported by over 200 volunteers including three people who use our services and other specialneeds and community placements. The Trustees acknowledge the valuable contribution they make.Over 280,000 customers visited the shops last year, and offer an excellent opportunity to raiseSense Scotland Trustees'Report and Accounts Page 16 of 37

Trustees' Report andAccountsfor theyearended31 March2013

awareness of our work.Located within TouchBase Glasgow, TouchBase Business Centre generates income through meetingroom hire, catering, cafe and office rental. Total Income for 2012/13 was £128,781, an increase of£18,150 or 16% on 11/12 Income. The Cafe and catering service provide an important service andIncome grew by 8% on the previous year, however rising overheads means this remains a challengingarea.



Financial ReviewThe SenseScotland financial statements relate to activities throughout Scotland, some of which areon a contracted basis and, therefore, funded through local authorities. Other activities are fundedthrough charitable income and statutory grants.

Income and Funding:

In 2012/2013 total income was £21 million, up by £1.2 million (6.2%) on the previous year. Fees andallowances account increased by 6.6% from £15.69 million in 2011/12 to £16.72 million in 2012/13and represents 79.7% of our total income. Income from our regular committed donors increased by6.7% from £954k 2011/12 to just over £1 million in 2012/13.The TouchBase BusinessCentre income increased by £18.2k from £111k in 2011/12 to £129k in2012/13 from rentals and cafe activities.The shop income increased by £154K this year compared to 2011/12.Major grants received are identified in note 2 to the financial statements. In addition, substantialdonations have been received from the following Organisations and Trusts:

• A M Pilkington's Charitable Trust• The Margaret Murdoch Charitable Trust

• Alexander Moncur's Trust

• The Big Lottery Fund• People's Postcode Lottery Trust

• Northwood Charitable Trust• The Robertson Trust

• EsmeeFairbairn Foundation

• Mail Marketing• Wilson Andrew

The Trustees are indebted to all donors for their support, both financial and otherwise, without whichit would not have been possible to achieve all that we did.The Trustees wish to note the continued support of the Scottish Government in respect of Children,Young People and Families Unified Voluntary Sector Fund. The Trustees also wish to note their thanksto local authorities, health boards and other statutory agencies who have continued to support SenseScotland through grant and other funding.

Expenditure

Expenditure increased by £1.6 million (8.7%) during 2012/13. Salary cost still remains our main areaof expenditure, accounting for 78% of the total expenditure.

Reserves and investments

The Trustees had set a target of 12 weeks operating costs as a desired level of reserves, which isreviewed annually, having taken into account the nature of the client group which the charity isentrusted to provide care and support. As of 31 March 2013, the charitable company has managedto achieve a reserve level of 11.4 weeks working capital. Working Capital is calculated using the NetCurrent Assets (excluding Restricted and Designated Funds) divided by the average expenditure forone week.The Trustees' policy with regard to surplus funds or reserves is to invest such funds in low riskinterest bearing accounts. SenseScotland invested such funds in a 7 day notice account during theyear. Total Interest of £132k was earned in the year, an increase of £62k from 2011/12.

Business Risks and Uncertainties

As a company established under the Companies Act 2006, we are required to report on the businessrisks and uncertainties that may affect the charity as a business.In general terms, as 80% of our total income is derived from contracted services with local authoritiesand other statutory bodies, we have a very low risk in terms of the core of the charity's work. Thenature of our client group's support needs, long term physical, sensory and learning difficulties,means that we will be offering such services to local authorities and other statutory bodies over along term period.Sense Scotland Trustees' Report and Accounts Page 18 of 37

Trustees' Report and Accountsfor the yearended 31 March 2013

As we are dealing with large statutory authority purchasers of our services, the risk of non-paymentof our fees is also very low. The main potential risk to the charity may arise from changes in centralgovernment funding of local authorities, or future local government reorganisation that could impacton the charity's cash flow position from delays in payments of fees. Assuch the charity is looking toensure that robust credit control processesare in place to ensure that non payment of invoices aretackled qulcklv and effectively.in common with all charities, we do face the uncertainty on a yearly basis about the level offund raised income for our added value services or special projects. However, such uncertainties areminimised with our strategy to increase the level of committed regular donors. We received£781,198 from such donors during the year. In addition, we obtain specific grant funding for specialprojects thus ensuring our costs are fully funded.Whilst our shops provide the charity with a year on year stable level of charitable income, there is thepotential risk of such Income falling due to competition and/or changes in consumer spendingpatterns. Whilst poorly performing shops are closed where possible, there are lease commitments,which the charity may need to honour if the lease is not able to be reassigned.

Strategic Planning ProcessAs reported in last year's Annual Review, Sense Scotland was undertaking a significant change toGovernance and Strategic Planning arrangements, The changes to the Governance arrangement arereported on page 4.The strategic planning cycle begins in October with the Leadership Team undertaking a full review ofthe Strategic Plan including any changes which may have taken place in the internal and externaloperating environments. This results In a draft Strategic Plan which is issued to the Leadership Teamfor operationalisation through Annual Business Plans, the plans must be available by February.The draft Strategic Plan and Business Plans are then subject to review and agreement of the Board atthe Annual Trustee/Leadership Team Away Day held in March.Once approved the Strategic Plan and Business Plan delivery is subject to quarterly reviews and ismonitored at every meeting of the Board by way of the Corporate Plan dashboard supported byappropriate documentation.


Trustees' Report andAccountsforthe year ended31 March2013

Statement on disclosure of information to the auditorsThe Trustees confirm and are confident that all relevant audit information has been provided to thecharitable company's auditors, and are not aware of any audit information that has not beenprovided to or given access to the auditors.EachTrustee hastaken all the steps required by the Trustee's duty to exercise due care, skill anddiligence and that he or she ought to have taken in his or her duty asa Trustee in order to makehimself or herself aware of any relevant audit information and to establish that the charitablecompany's auditors are aware of that information.

Statement of Trustees' responsibilities in respect of theAnnual Report and the financial statementsThe Trustees (who are also Directors of SenseScotland for the purposes of company law) areresponsible for preparing the Annual Report of the Trustees and the financial statements inaccordance with applicable law and United Kingdom Accounting Standards (United KingdomGenerally Accepted Accounting Practice).Company law requires the Trustees to prepare financial statements for each financial year which givea true and fair view of the state of affairs of the charitable company and of the incoming resourcesand application of resources, including the income and expenditure, of the charitable company forthat period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UKAccounting Standards have been followed, subject to anymaterial departures disclosed and explained in the financial statements;

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

The Trustees are responsible for keeping proper accounting records that disclose with reasonableaccuracy at any time the financial position of the charitable company and enable them to ensure thatthe financial statements comply with the Companies Act 2006, the Charities and Investment(Scotland) Act 200S and the Charities Accounts (Scotland) Regulations 2006. They are also responsiblefor safeguarding the assets of the charitable company and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.The Trustees are responsible for the maintenance and integrity of the corporate and financialinformation included on the company's website. Legislation in the United Kingdom governing thepreparation and dissemination of financial statements may differ from legislation in otherjurisdictions.

AuditorsIn accordance with Section 48S of the Companies Act 2006 a resolution proposing the reappointment of PricewaterhouseCoopers LLP as auditors to the charity will be put to the Annual

General Meet~mg..»:~~... ~~

By Order ~TrusteesJohn O'Connor12th September 2013

SenseScotland Trustees' Report andAccounts Page20 of37

Trustees' Report andAccountsfor theyearended 31 March2013

Independent Auditors' Report to the Trustees and Memberof Sense Scotland Limited

We have audited the financial statements of SenseScotland Limited for the year ended 31 March2013 which comprise the Statement of Financial Activities, the Income and Expenditure Account, theBalance Sheet and the related notes. The financial reporting framework that has been applied in theirpreparation is applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice).

Respective responsibilities of trustees and auditors

As explained more fully in the Trustees' Responsibilities Statement set out on page 20, thetrustees (who are also the directors of the charitable company for the purposes of companylaw) are responsible for the preparation of the financial statements and for being satisfied thatthey give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordancewith applicable law and International Standards on Auditing (UK and Ireland). Those standardsrequire us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the charity's trustees andmembers as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment(Scotland) Act 2005 and the Companies Act 2006 and regulations made under those Acts (regulation10 of the Charities Accounts (Scotland) Regulations 2006 (asamended) and Chapter 3 of Part 16 ofthe Companies Act 2006) and for no other purpose. We do not, in giving these opinions, accept orassume responsibility for any other purpose or to any other person to whom this report is shown orinto whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statementssufficient to give reasonable assurance that the financial statements are free from materialmisstatement, whether caused by fraud or error. This includes an assessment of: whether theaccounting policies are appropriate to the charitable company's circumstances and have beenconsistently applied and adequately disclosed; the reasonableness of significant accounting estimatesmade by the trustees; and the overall presentation of the financial statements. In addition, we readall the financial and non-financial information in the trustees' report to identify materiaiinconsistencies with the audited financial statements. If we become aware of any apparent materialmisstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 March 2013and of its incoming resources and application of resources, including its income andexpenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom GenerallyAccepted Accounting Practice; and

• have been prepared in accordance with the Companies Act 2006, the Charities andTrustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts(Scotland) Regulations 2006 (as amended).

Sense Scotland Trustees' Report and Accounts Page21 of37

Trustees' Report and Accountsfortheyearended 31 March 2013

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Trustees' Annual Report for the financial year forwhich the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 andthe Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in ouropinion:

• adequate accounting records have not been kept or returns adequate for our audit have notbeen received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records andreturns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

l)~~ ~dHtmLindsey Paterson (Senior Statutory Auditor)for and on behalf of PricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsGlasgow12 September 2013

PricewaterhouseCoopers LLP is eligible to act asan auditor in terms of section 1212 of the CompaniesAct 2006.


Income and Expenditure account for year ended

31 March 2013

Trustees' Report and Accountsforthe year ended 31 March2013

2013 2012Notes

£ £

Income

Fees and Allowances 1 16,721,286 15,691,959

Grants Receivable 1,2,3 531,162 572,234

8ig lottery Fund - Grant 1,2,3 98,977 138,400

Donations/ events and trading 3 784,351 1,056,777

Legacies receivable 3 286,521 368,917

Committed giving campaigns 3 1,017,472 629,205

Income from shops 3 1,277,521 1,123,123

Income from TouchBase Business Center 3 128,781 110,631

InterestReceivable andsimilar income 4 132,160 70,278

20,978,231 19,761,524

Expenditure

Residential andcommunity services 5 16,556,321 14,913,985

Individual and family services 5 192,184 389,785

Policy, development and resources 5 949,713 674,270

Fundraising and publicity 6 324,994 351,159

Committed giving campaigns 6 337,390 392,905

Shop costs 6 1,122,205 1,065,719

TouchBase Business Centercosts 6 74,124 83,585

Governance costs 8 14,715 19,200

19,571,646 17,890,608

Surplus for the year (Total Funds) 1,406,585 1,870,916

Relating to Restricted and Designated Funds 41,123 (42,697)

Net Income to General Funds 1,447,708 1,828,219

Transfer to General Funds from Spent Funds (286,521) (368,917)

Transfer to Designated Funds from General Funds (851,521) (940,000)

Net Movement In General Funds 309,666 519,302

All results related to continuing activities

Sense Scolland Trustees' Report andAccounts Page 23 of37

Trustees' Report and Accounts

Statement of financial activities for the year endedfor theyear ended 31 March 2013

31 March 2013

NotesGeneral Designated Restricted Total Total

Funds Funds Funds 2013 2012

£ £ £ £ £

Incoming Resources

Incoming resources fromCharitable Activities

Fees andallowances 1 16,163,272 558,014 16,721,286 15,691,959

Grants Receivable 1,2 7,539 622,600 630,139 710,634

Incoming resources fromGenerated Funds

Voluntary Income 3 1,519,619 118,624 328,305 1,966,548 1,938,449

Activities for generating funds 3 1,528,098 1,528,098 1,350,204

Interest receivable 4 132,160 132,160 70,278

Totalincoming resources 19,350,688 118,624 1,508,919 20,978,231 19,761,524

Resources expended

Costs of Charitable Activities

Residential andcommunity5 15,608,992 947,329 16,556,321 14,913,985

services

Individual andfamilyservices 5 181,492 10,692 192,184 389,785

Policy, development and5 531,486 52,208 366,019 949,713 674,270

resources

Cost of generating funds

Costs of generating voluntary6 318,917 241,199 560,116 608,064

incomeCosts of activities for generating

6 1,247,379 51,218 1,298,597 1,285,304funds

Governance costs 8 14,715 14,715 19,200

Total resources expended 17,902,981 344,625 1,324,040 19,571,646 17,890,608

Net incoming/outgoing1,447,707 (226,001) 184,879 1,406,585 1,870,916

resources beforetransfers

Transfers 18 (1,138,042) 1,138,042

Net movementin funds 309,665 912,041 184,879 1,406,585 1,870,916

Fund Balances brought forward3,353,968 5,908,768 2,680,345 11,943,081 10,072,163

atl April 2012Fund Balances carried forward at

3,663,633 6,820,809 2,865,224 13,349,666 11,943,07931 March 2013

All incoming resources and resources expended are derived fromcontinuing activities. Theresults above arereportedona historical basis.


Balance Sheet as at 31 March 2013


Notes 2013 2013 2012 2012

£ £ £ £

Fixed assets

Tangible assets 13 6,653,197 6,195,431

Current assets

Debtors 14 2,111,974 1,494,742

Investments 15 1,682 1,682

Cash at bank and in hand 6,060,323 5,784,812

8,173,979 7,281,236

Creditors: amounts failingduewithin one year 16 (792,427) (800,659)

Net current assets 7,381,552 6,480,577

Total assets less current liabilities 14,034,749 12,676,008

Creditors: amounts falling due aftermore thanone17 (685,083) (732,928)

year

Netassets 13,349,666 11,943,080

The funds of the Charity

Restricted funds

Designated funds

Generalfunds

Total Charity funds

18

18

18

2,865,224

6,820,809

3,663,633

13,349,666

2,680,344

5,908,768

3,353,968

11,943,080

The financial statements on pages 23 to 37 were approved by the Trustees on 12 September 2013

Roy Cox

Chairman

Sense Scotland Trustees' Report andAccounts

John O'Connor

Secretary

Page 25 of37


Accounting policiesBasis of preparation

SenseScotland isan incorporatedcharity. The accounts have been prepared on a goingconcernbasis.Thefinancial statements are prepared in accordance with the Statement of Recommended Practice'Accounting and Reporting by Charities' issued in March 2005,Scotland regulations 2006,Charitiesand Trustee Investment (Scotland) Act 200Sand the Companies Act 2006.Theaccounting policies have been applied consistentlythroughout the year and the precedingyear.The companyhas taken advantage of the exemption from the requirement to prepare a cash flowstatement under Financial Reporting Standard 1 (revised), as it isa wholly owned subsidiaryundertaking and is included inthe ultimate parent undertaking's consolidated cash flowstatement.Particulars of the significant accounting policies of the charitable companyare given below.

Basis for recognition of incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is legallyentitled to the income and the amount can be quantified with reasonable accuracy.

Incoming resources from charitable activities

Feesand allowances represent income earned in respect of contracted serviceswith local authorities,health boards and other statutory agenciesand are recognised when the servicesare performed.Grants incomeis recognised on a receivable basisand when the charity is unconditionally entitled tothe grant. Where entitlement is conditional upon the delivery of a specific performance bythecharity, grant income is not recognised until these conditions have been fulfilled.

Incoming resources from generated funds

Voluntary income (consisting of donations, committed giving and legacies) isaccounted for whenreceivable. Non-cash donations, other than goods donated for sale through our shops, are valued atan estimate of their value to the charity. Volunteerservicesare not quantified nor included in thefinancial statements.

Incoming resources from activities for generating funds

Income from our shops, through the sale of donated goods, and from the sale of Christmas cards andmerchandise isaccounted for on a receivable basis.Income generated from events issimilarly accounted for on a receivable basis.

Deferred income

Fees, grants or donations received in a financial year inadvance of related services, or events to beperformed in a later financial year, are treated as deferred income.

Resources expended

Resources expended are recognised in the period to whichthey relate and when a liability is incurred.Expenditure is reported inclusive of irrecoverablevalue added tax.Theactivities classifications within Costs of Charitable Activities consistof direct costs specific tothese activities together with apportioned indirectsupport costs attributable to each activitycategory.Costs of generating funds within the Statement of Financial Activities (SoFA) are those Incurred inseekingvoluntarycontributionsfrom individuals, organisations,trusts and corporations infurtherance of the charity'sobjects. Costs of activities for generating funds consist of direct shops'expenditure, costs of fundraising events and costs of cards and merchandise purchased for resale. Anapportionment of general fundraising costs and indirectsupport costs are also included within theexpenditure reported in the SoFA.

Support Costs

Support costs consisting of the head officefunctions of finance, human resources, ICT, generaladministration and management are apportioned across charitable activities and costs of generated

Sense Scotland Trustees' Report andAccounts Page26 0137

Trustees' Report and Accountsfor the year ended 31 March 2013

funds on the basis of staff costs.

Governance costs

Governance costs are those incurred in connection with the constitutional and statutoryrequirements of the charity, and includes the audit fee and costs associated with the strategicmanagement of the charity.

Fixed assets and depreciation

Using the following methods, depreciation is calculated so as to write off the cost of tangible fixedassetsover their estimated useful economic lives:In equal annual instalments:

• Heritable buildings - 50 years

• Long leasehold and ieasehold improvements - over the remaining life of the lease

• Leasehold improvements (shops) - over6 years

• Equipment, furniture, fixtures and fittings - over4 years

• Motor vehicles - over4 years

Purchases of fixed assetsvalued at £2,500 and above are capitalised, otherwise they are expensed tothe SoFAand Income and Expenditure Account.Fixed assets are reviewed for impairment if events or circumstances indicate that the carrying value ishigher than the recoverable amount.

Investments

Investments are valued at cost unless their market value is less than cost.

Leases

Assets acquired under finance leases and hire purchase contracts are included under fixed assets inthe balance sheet. The related liability is included in creditors. Operating lease rentals are chargedto the income and expenditure account in the period in which they are incurred.

Pension costs

Pension benefits are funded over the employees' periods of service. The company's annualcontributions are based on actuarial advice and are charged to the income and expenditure accountin the period to which they relate. Refer to note 12.

Taxation

The company has been granted relief from Corporation Tax under Section 478 (onwards) of theCorporation TaxesAct 2010.

Fund accounting

General Funds comprise accumulated surpluses and deficits on general funds that are available foruse at the discretion of the trustees in furtherance of the general objectives of the Charity and thathave not been designated for other purposes.

Restricted Funds are funds which are subject to special conditions imposed by the donor. The fundsare not therefore available for work performed by SenseScotland other than that specified by thedonor.


Trustees' Report and Accountsfor the yearended31 March2013

Significant Restricted Funds:• Residential and Community Services, Individual & Family Servicesand Childrens Services are

made up of fees and grants paid to SenseScotland in relation to the core business ofproviding direct service related activities.

• Education & Training and Policy & Innovation are made up of funds which have been paid toSenseScotland for the purposes of bring added value to service users lives and to developtraining opportunities for staff.

Designated Funds are those funds which have been set aside for a particular purpose, out of GeneralFunds, by the Trustees.Significant DesignatedFunds:

• Residential and Community Services is a designated to develop fixed assetswithin directservice areas.

• Policy & Innovation and Education & Training have been designated to develop theorganisation through Touchbase 2 and investment in the IT infrastructure and to set asidefunds to cover unrecoverable debt and reductions in local authority income for short periodsto ensure service expenditure is reduced to an acceptable and sustainable level.

Transfers between funds are determined on an annual basis as part of the charity's budgetaryprocess. The Trustees determine the level of funds which are required to be set aside in designatedfunds, from unrestricted funds, to pay for planned expenditure.

Stock

Donated stocks received into the shops are valued at the lower of cost and net realisable value.Unsold donated items are not included in closing stock since their cost is nil and their value isuncertain until sold. Purchased stock items are considered to be wholly immaterial and are notreflected in the closing stock position. SenseScotland does not buy in significant amounts of stock forresale by the shops with such Items including only SenseScotland merchandise of immaterial value.


Notes to the financial statements for the year ended

31 March 2013

Trustees' ReportandAccountsfor the yearended31 March2013

1. Incoming resources from Charitable Activities

Fees and Grants Total TotalAllowances receivable 2013 2012

£ £ £ £

Residential & Community Services

Care Homes 1,656,758 16,527 1,673,285 1,546,366

Housing Support projects 10,193,051 109,040 10,302,091 9,835,649

Respite & Day services 4,254,593 305,093 4,559,686 4,728,280

Total Income from Residential and Community16,104,402 430,660 16,535,062 16,110,295

Services

Individual & Family Services 31,153 10,700 41,853 10,700

Policy, Dev. & Resources 585,731 188,779 774,510 281,598

Total Income from Charitable Activities 16,721,286 630,139 17,351,425 16,402,593

SenseScotland Trustees'ReportandAccounts Page 29 of 37

2. Grants received from statutory authorities and other organisations

Trustees' Report and Accountsfortheyearended31 March 2013

2013 2012

Restricted Grants £ £

Scottish Government (Malawi Project) 87,907 83,135

Scottish Government (VSDF Award) 35,000

Scottish Government (Unified Voluntary Sector Fund) 66,785 66,785

Scottish Government (Partners in Communication) 92,800

Scottish Government (Creative Breaks) 351

Paths to Health 1,750 9,750

Scottish Natural Heritage 1,408

Scottish Government (8reaks) 51,391

Scottish Arts Council (National Lottery Grant) - Music 5,877

Scottish Arts Council (Awards for All) 8,745

Creative Scotiand (Walk Group Project) 20,100

Creative Scotland (National Lottery Grant) - Music 17,384

Forestry Commission 9,244

Big Lottery Fund (One Giant Leap) 57,914 55,148

Big Lottery Fund (Reaching Out) 41,063 83,252

Tayside NHS 10,700 10,700

NHSGreater Glasgow (innovation projects) 160,923 160,923

Glasgow City Council 3,231 8,167

Peoples Postcode Lottery 9,108

Enterprise Growth Fund - Touchbase 2 170,545

Total Restricted Grant

Unrestricted Grants

Scottish Local Authorities and Health Boards (towards services)

Total Unrestricted Grant

Total Grants Received for the year

Sense Scotland Trustees' Report and Accounts

622,600

7,539

7,539

630,139

707,486

3,148

3,148

710,634

Page30 0137


3. Incoming resources from generated fundsfor theyearended 31 March 2013

General Designated Restricted2013 2012

Funds Funds Funds

£ £ £ £ £

Voluntary Income

Donations 451,900 (117,650) 328,305 662,555 615,766

Committed Giving 781,198 236,274 1,017,472 953,766

Legacies receivable 286,521 286,521 368,917

Total Voluntary Income 1,519,619 118,624 328,305 1,966,548 1,938,449

Activities for generating funds

Income from shops 1,277,521 1,277,521 1,123,123

Income from TouchBase Business 128,781 128,781 110,631

Trading 12,605 12,605 15,306

Fundraising Events 109,191 109,191 101,144

Total Income from Activities for generating 1,528,098 1,528,098 1,350,204

4. Interest receivable and similar Income

2013 2012

£ £

Interestreceivable 132,160 70,278

5. Costs of Charitable Activities

Staff CostsOther Direct Support

2013 2012costs Costs

£ £ £ £ £

Residential and Community Services

Care Homes 1,214,516 202,610 110,375 1,527,501 1,548,933

Housing support projects 8,445,457 1,225,822 767,519 10,438,798 8,940,588

Respite & Day services 3,275,212 1,017,160 297,650 4,590,022 4,424,464

Total Residential and Community12,935,185 2,445,592 1,175,544 16,556,321 14,913,985

Services Costs

Individual & Family services 87,548 96,680 7,956 192,184 389,785

Pollcv.develcpment & resources 1,387,518 (563,902) 126,097 949,713 674,270

Total Costsof Charitable Activities 14,410,251 1,978,370 1,309,596 17,698,218 15,978,040



6. Costs of Generated Fundsfor lhe yearended31 March2013

Direct CostsSupport

2013 2012Costs

£ £ £ £

Costs of generating voluntary Income

Donations 196,975 10,098 207,073 206,374

Committed Giving campaigns 332,189 5,201 337,390 392,905

legacies receivable 14,075 1,578 15,653 8,785

TotalCosts of Generating Funds 543,239 16,877 560,116 608,064

Costs of activities for generating funds

Shops 1,105,713 16,492 1,122,205 1,065,719

Trading 11,302 7,709 19,011 17,645

Fundraising Events 53,377 29,880 83,257 118,355

TouchBase BusinessCentre 74,124 74,124 83,585

Total Costs of Activities for Generating Funds 1,244,516 54,081 1,298,597 1,285,304

Total Costs of Generated funds 1,787,755 70,958 1,858,713 1,893,368

7. Support Costs

FinanceHuman Information Mgment&

2013 2012Resources Technology Admin

£ £ £ £ £ £

Residential & Community services

Care Homes 34,513 27,949 3,110 44,803 110,375 104,966

Housing support projects 239,997 194,348 21,628 311,546 767,519 700,800

Respite & Day services 93,073 75,370 8,387 120,820 297,650 289,223

Total Residential and Community367,583 297,667 33,125 477,169 1,175,544 1,094,989

Services

Individual & Family services 2,488 2,015 224 3,229 7,956 8,802

Policy.development & resources 39,430 31,930 3,553 51,184 126,097 116,428

Activities for generaling voluntary5,277 4,274 476 3,535 13,562 11,836

income

Activities for generating funds 16,911 13,694 1,524 11,327 43,456 40,448

Total Support Costs 431,689 349,580 38,902 546,444 1,366,615 1,272,503


8. Governance Costs

Trustees' Report and Accountsfortheyear ended 31 March 2013

Strategic management costs

Auditors' remuneration - audit services

Therewere no non-audit fees payable during the year

2013

£

2,715

12,000

14,715

2012

£

7,200

12,000

19,200

9. Operating surplus

2013 2012

Operating surplus is stated after charging: £ £

Depreciation - owned assets 196,388 208,837

Operating lease rentals - property 361,186 368,300

Operating leaserentals - equipment 9,323 9,323

10. Staff costs

2013 2012

£ £

Wages andsalaries 14,029,639 12,804,197

Social security costs 1,007,791 928,666

Other pension costs 111,528 123,563

15,148,958 13,856,426

The average monthly number of persons employed by the company was 694 (2011/12: 648).

Four employees received remuneration greater than £50,000 per annum, in the following range:

- Three employees earned between £50,001 and £60,000

- One employee earned between £70,001 and £80,000

The average monthly number of employees can be analysed as follows:

Directservices

Added Vaiue services

Shops

Central services

SenseScotland Trustees' Report andAccounts

2013 2012

Number Number

588 545

21 25

38 36

47 42

694 648

Page 33 0137

11. Trustees' remuneration


Trustees received no remuneration during the financial year 2012/13 (2011/12: £0.00). No traveiiingexpenses werepaid to Trustees during the year (2011/12: £NiI)

12. Pensions

Sense 5cotiand withdrew from the London Pension FundsAuthoritySuperannuation Scheme on 15 May2012 withbenefit preserved based on final pensionable pay. The assets of the scheme are held separately from those of theparticipating employers, being invested In equity investment and Government Securities. Contributions to thescheme arecharged to the income and expenditure account and SOFA so as to spread the cost of pensions overemployees' working liveswith the charitable company. The contributions are determined by qualified actuaries usingthe projected unit method. The most recent actuarial vaiuation was as at 31st March 2007.

The pension charge for the year 2012/13 was £111,528 (2011/12: £123,563). It has not been possible to separatethe pension assets and liabilities for Sense Scotland from the Sense Group assets and Iiabiiities. The disclosureincluded in the Sense, National Deafblind& RubellaAssociation'sconsolidated financialstatement provides thedisclosure for the defined benefit scheme, for FR5 17 purposes, for the Group. Sense 5cotiand has accounted for itspension costs as if it werea defined contribution scheme.

13. Tangible assetsFreehold Long Equipment & Motor

TotalProperty Leasehold Furniture Vehicles

£ £ £ £ £

Cost

Atl April 2012 6,294,246 577,338 483,512 217,341 7,572,437

Additions 507,625 76,955 69,575 654,155

At 31 March 2013 6,801,871 577,338 560,467 286,916 8,226,592

Accumulated Depreciation

Atl April 2012

Charge for the year

At 31 March 2013

Net book value

At 31 March 2013

At31 March 2012


561,174

125,885

687,059

6,114,812

5,733,073

227,216

15,986

243,202

334,136

350,122

423,476

28,977

452,453

108,014

60,036

165,141

25,540

190,681

96,235

52,200

1,377,007

196,388

1,573,395

6,653,197

6,195,431

Page 34 of37

14. Debtors

Fee debtors

Other debtors

Prepayments and Accrued Income

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

15. Investments


2013 2012

£ £

1,987,381 1,335,018

34,626 42,635

89,967 117,089

2,111,974 1,494,742

Thecurrent asset investment of £1/682 represent 280 units in the Equities Investment Fund for Charities.

16. Creditors - Amounts falling due within one year

2013 2012

£ £

Bank ioans and overdrafts 47,B45 45,067

Amounts owedto groupundertakings 16,564 20,155

Othercreditors 154,925 85,879

Taxation and social security 269,734 267,810

Accruals and deferred income 303,359 381,748

792,427 800,659

17. Creditors - Amounts falling due after more than one year

2013 2012

£ E

Secured Bank loan 685,083

685,083

732,928

732,928

The secured Bank loan is in respect of 43 Middlesex Street, Glasgow and Fieuchar Street, Dundee which wasfinanced by a ioan from HB05who have first charge on the property. The loan is payable in equai instalmentsover 20 years andthe Interestcharge isfixedat 1%overbase rate.

Total loans are payable as foUows:

Second to fifth year inclusive

After fiveyears


£

209,808

475,275

685,083

£

209,808

523,120

732,928

Page 35 of37


18. Movements / Analysis of Fundsfor the year ended 31 March 2013

Total Funds 1Income Transfers Expenditure

Total FundsApril 2012 31 March

E E E E £

Restricted Income Funds

Residential & Community Services 1,414,487 348,404 (265,165) 1,497,726

Individual& FamilyServices 1,338 41,853 (10,692) 32,499

Childrens Services 671,438 218,840 (251,852) 638,426

Education & Training 231,308 130,209 (219,567) 141,950

Big Lottery 133,441 100,466 (208,035) 25,872

Policy& Innovation 199,040 576,987 (366,019) 410,008

Fundraising 29,293 92,160 (2,710) 118,743

Total 2,680,345 1,508,919 (1,324,040) 2,865,224

Designated funds

Residential & Community Services 270,525 286,521 557,046

Education & Training 1,175,838 795 (25,290) 1,151,343

Policy& Innovation 4,837,751 90,836 851,521 (26,917) 5,753,191

Shops 67,324 75,719 (51,218) 91,825

Fundraising (442,671) (48,726) (241,199) (732,596)

Total 5,908,767 118,624 1,138,042 (344,624) 6,820,809

General Funds

legacies 286,521 (286,521)

General [& EAccount

Total

3,353,968 19,064,167 (851,521) (17,902,981)

3,353,968 19,350,688 (1,138,042) (17,902,981)

3,663,633

3,663,633

Fundraising Campaigns isin a negative position at the yearend asit reflects investments in Fundraising Campaignswhere income will be generated over a period 10 -15 years. lt is anticipated that expenditure each individualcampaign isrecovered fullywithin a maximum of 3 years."

Sense Scotland Trustees' Report and Accounts Page 36 0137


19. Analysis of net assets balances between the fundsfor the year ended 31 March 2013

Fixed AssetsOther Net LongTerm Total funds Total funds

Assets Liabilities 2013 2012

£ £ £ £ £

Restricted funds 1,391,826 1,473,398 2,865,224 2,680,344

Designated funds 4,662,847 2,157,962 6,820,809 5,908,768

General funds 598,524 3,750,192 (685,083) 3,663,633 3,353,968

Total 6,653,197 7,381,552 (685,083) 13,349,666 11,943,080

The above 2012 figures have been restated in line with Note 18 above.

20. Capital Commitments

Afurther £100,000 has been added to the BOO,OOO designated fund for Capital and Investments. This has beendesignated for the use of capital investments and TouchBases.

21. Operating lease commitments

2013 2012

Land &Equipment Total

Land &Equipment Total

Building Building

Operating leases which expire: £ £ £ £ £ £

Within oneyear 156,426 9,323 165,749 113,127 9,323 122,450

Second to fifth year Inclusive 84,587 84,587 120,973 120,973

After five years 84,875 84,875 66,375 66,375

325,888 9,323 335,211 300,475 9,323 309,798

22. Company limited by guarantee

The company has no share capital. The liabilityof the sole member, Sense, the National Deafblind and RubellaAssociation, is limited byguarantee. Sense, the National Deafblind andRubella Association, has undertaken tocontribute such amount not exceeding onepound asmayberequired inthe event of the company being wound up.Sense, the National Deafblind & Rubella Association, Isfor accounting purposes the parent company of SenseScotland whose financial statements are therefore consolidated intotheir Financial Statements. The RegisteredOfficeof Sense, the National Deafbllnd & Rubella Association is: 101 Pentonville Road, London, Nl 9LG

23. Related Party Transactions

As Sense Scotland is, foraccounting purposes, a wholly owned subsidiary of Sense, the National Deafblind andRubella Association, thecompany has taken advantage of exemptions under FRS 8 with regards to the requirementto disclose related partytransaction.


Sense Scotland North East Region:The Gatehouse Quarry Road Northfield Industrial Estate Aberdeen AB16 5UU

Phone: 01224 695510 Fax: 01224 789945

Sense Scotland East Region:Office 7 Castleblair Business Centre Fullerton Road Queensway Industrial Estate Glenrothes KY7 5QR

Phone/text: 01592 752005 Fax: 01592 751121

Head Office TouchBase Centre Glasgow:Sense Scotland 43 Middlesex Street Glasgow G41 1EE

Phone: 0141 429 0294 Fax: 0141 429 0295 Text: 0141 418 7170

Contact the above for: Children and Family Services West Region Central Region

Designed by strutdesign.co.uk | Photography by Sense Scotland | This publication is available in various formats on request. Sense Scotland is a Company Limited by Guarantee. Registered in Scotland No: 147570 and a registered Scottish Charity No: SC022097.

Patron: The Duchess of Sutherland. Honorary Patron: Mary, Dowager Countess of Strathmore LLD DL.

Blue - C100 M94 Y0 K0 Green - C100 M0 Y31 K23 4 Colour Coated

How can we support you?

• Information and Advice

• Support for children and young people

• Support for adults

• Support to live in your own home

• Taking a short break

• Parent Enabler Project

• TouchBase

• Arts Programme

• One Giant Leap

• Outdoor Activities

• Partners in Communication

How can you get involved?

• Support our fundraising across Scotland

• Join us as a staff member or volunteer

• Use Glasgow’s TouchBase Business Centre for meetings, events and office spaces

• Visit one of our 20 shops across Scotland

To find out more about Sense Scotland:email: [email protected] or visit: www.sensescotland.org.uk

Sense Scotland provides

support to over 500

children, young people

and adults, their

families and their carers,

throughout Scotland.

We specialise in providing

support to people with

complex communication

support needs.

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