trustees report and accounts 2011

7/31/2019 Trustees Report and Accounts 2011

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Trustees reportand accounts


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Patron

Her Majesty The Queen

President

His Royal Highness The Prince o Wales

KG KT GCB OM

Deputy presidents

Her Royal Highness Princess Alexandra

The Hon Lady Ogilv y LG GCVO

The Countess Mountbatten o Burma

CBE CD JP DL

Honorary vice-presidents

Lord Barnard TD

The Rt Hon Baroness Chalker o Wallasey

Sylvia, Countess o Limerick CBE

Proessor John McClure OBEMrs Elspeth Thomas CBE DL

Vice-pres idents

Mr Anthony Andrews

Ms Angela Rippon OBE

Mrs Maria Shammas MBE

Board o trustees

Chairman

Mr James M. T. Cochrane

Vice-chairmen

Mrs Victoria Peterkin

Mr David Fall CMG

Mrs Stella Cummings

(rom January 2012)

Treasurer

Mr Russell Walls (until September 2011)

Mr David Howell (rom September 2011)

Other trustees

Mrs Sue Brown

Mr Stanley Fitches MBE

Ms Amy Foan

Mr Christopher Hedges

(until December 2011)

Mr Michael Herriot MBE

Mr Steve John

Mr Azal Khan CBE (until October 2011)

Lady Lamport

Dr Lise LlewellynMr Gordon Low

Dr J. Kay Richmond

(until December 2011)

Mr Graham Stegmann CBE

Mr Paul Taylor (rom January 2012)

Mr Keith Shipman (rom January 2012)

Senior management team

Chie executive

Sir Nicholas Young

Managing director o operations

Michael Adamson

Director o internationa l

David Peppiatt

Director o UK servic e development

Margaret Lally

UK director, Scotland, Northern

Ireland and the Isle o Man Territory

Norman McKinley

UK director, Northern Territory

Jean Henderson

UK director, Wales and Western

Territory

Annie Bibbings

UK director, South Eastern Territory

Liz Page

Director o communications

Philip Talbot

Director o undra ising

Mark Astarita

Director o people an d learning

Roger Smith FCIPD

Che de cabinet

Caroline Leighton

Director o fnance an d

business development

Rohan Hewavisenti

Sub-committees

Finance and audit commit tee

Mr David Howell, chairman (rom

September 2011)

Mr Russell Walls, chairman (until

September 2011)

Mr James M. T. Cochrane

Mr Stanley Fitches MBE

Mr Gordon Low

Mrs Liz Hazell

Mr Anthony Potts

Mr Peter Bluck

Remuneration comm ittee

Mr James M. T. Cochrane, chairman

Mr Russell Walls (until September 2011)

Mr David Howell (rom September 2011)

Mrs Victoria Peterkin

Mr David Fall CMG

Ethical review panel

Mrs Stella Cummings

Mr Steve John

Mr Graham Stegmann CBE

External auditors

BDO LLP

Emerald House

East Street

Epsom

Surrey KT17 1HS

Bankers

National Westminster Bank plc

City o London Ofce

PO Box 12258

1 Princes Street

London EC2R 8PA

Investment managers

Lazard Asset Management Ltd

50 Berkeley Street

London W1J 8HA

Legal & General Investment Management

One Coleman Street

London EC2R

BlackRock

33 King William Street

London EC4R 9AS

External legal advisers

Withers

15 Old Bailey

London EC4M 7EG

Young mother Pearl,21, became a volunteerater she and herextended amily receivedsupport rom the RedCross in South Arica

1


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I dont think I couldhave managed. To knowI could always pick up

the phone and talk withSue made the world odierence

Volunteer Sue Whalley helped Ellis

Sheldon and his wie cope with illness

in their remote country home

Contents

Chairman and chie executives statement 4

Our aims 5

Emergency response 6

Health and social care 8

Building resilience: rst aid and humanitarian education 10

Plans or 2012 12

Review o nances 14

Structure and governance 16

Independent auditors report to the trustees o the

British Red Cross Society 19

Accounts or the year ended 31 December 2011 22

Thank you 44

3British Red Cross Trustees report and accounts 20112


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Chairman and chie executivesstatement

This year has shown us how easy it isor a movement o people to change theworld, or good or ill. Summer riots in theUK, nancial protests around the worldand the all o governments in the MiddleEast and Arica they all relied on aninstantly connected network o peopleacting as one, quickly and powerully.

Part o the Red Cross mission is tomobilise the power o humanity. I chaosand violence are unolding more quickly,

then so must our ability to harness thatpower or good, saving and changinglives in the UK and overseas.

As always, our volunteers and stawere at the sharp end o crisis aroundthe world last year, rom drought andamine in east Arica to severe weatherin Scotland.

We remain realistic about the externalpressures and challenges acing us. Akey ocus or us has been the way thecoalition governments reorms andreviews are aecting our work mostnotably the NHS reorms, cuts in thepublic sector and the Departmentor International Development (DFID)aid reviews.

We have continued to develop ourhealth and social care oer to be moreconsistent, integrated and ocussed onwhat NHS commissioners needs arelikely to be in the uture. This is just oneway we are making sure that our services

are available or people adversely aectedby changes or cuts.

We also obtained unconditionalregistration or our ambulance workrom the Care Quality Commission,which ensures we can continue todeliver a variety o ambulance servicesindependently across England.

In November we transerred our skincamoufage service to a new home atChanging Faces, a charity specialising indisgurement. Over the last 36 years, thisaward-winning service has helped tens o

thousands o people cope with disguringconditions and blemishes and ChangingFaces is well placed to develop the serviceurther, ensuring it continues to have agreat impact on peoples lives. We oerour thanks to the dedicated and skilledvolunteers and sta involved.

The DFID aid reviews, and the worko the devolved administrations, haveshown an increasing ocus on preparingor emergencies in the UK and overseas,

which represents a signicant opportunityor us. Our Ready or Winter campaignto ensure that people are prepared orsevere weather, launched in partnershipwith the Scottish government, is a goodexample o how we are meeting it.

In these nancially challenging times,we must make sure we maximise ourundraising potential to ensure ournancial sustainability. Our compactwith our supporters is that, as ever, wewill keep our costs under control andmake ecient and eective use o allour resources. We, and the more than amillion people we help each year, rely ontheir generosity and trust.

Thank you to all o our supporters,partners, volunteers and sta membersor their vital contributions in 2011 working together, we saved and changedpeoples lives around the world.

James M. T. CochraneChairman o the board o trustees

Sir Nicholas YoungChie executive

Our aims

Our vision is o a world where everyone gets the help theyneed in a crisis.

Our mission is to mobilise the power o humanity so thatindividuals and communities can prepare or, deal with andrecover rom a crisis.

Our plans or 2011 included:

> strengthening our ability to respond

As the UKs leading emergency responsecharity, 3,500 sta and 32,500volunteers pursue these goals bothhere and overseas. Our work includes

emergency response, health and socialcare, and building resilience (includingrst aid and humanitarian education).

We operate both in our own right, andas part o the International Red Crossand Red Crescent Movement, the worldslargest humanitarian network, which hasaround 13 million volunteers across 188countries.

Our corporate strategy, Saving Lives,Changing Lives, sets the ramework orour core activities between 2010-15.

to large emergencies across the whole

o the UK> strengthening the quality o ourservices or reugees and asylumseekers

> increasing the reach and qualityo the International Federationo Red Cross and Red CrescentSocieties disaster response

> establishing our care in thehome activity as the main ocuso our UK health and socialcare work, integrating existingservices with it where appropriate

> building resilience, helping peopleand communities prepare or andwithstand disasters.

redcross.org.uk/movement

redcross.org.uk/strategy

4 British Red Cross Trustees report and accounts 2011 5

I eel Im not only

helping individualpeople, but helpingthe Red Cross andsociety in general

Ater being made redundant, Ed Owen

ound a new lease o lie as a care

in the home volunteer
http://www.redcross.org.uk/movementhttp://redcross.org.uk/strategyhttp://redcross.org.uk/strategyhttp://www.redcross.org.uk/movement


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Health and social care

We help vulnerable people recover romhealth or social crises, and live withdignity and independence in their homes

We helped 397,000 people in the UK(32,850 in Scotland) this year whenthey could not cope at home alone,many o them ater a stay in hospital oracing the risk o being admitted. Thishelped them retain their independence,

and reduced admissions to hospitalsand residential or nursing care.

For example, our medicalequipment loan service in south-east Wales made it possible or 280patients to be discharged rom hospital,averaging a saving o at least three beddays per patient.

Ninety-one per cent o our healthand social care service users reportedthat their experience was either goodor excellent.

We also began working towards theambitious target o reaching 40 per centmore people in the UK with our healthand social care services by 2014.

As part o this work, we agreed26 new health and social caredevelopments in 2011.

As the governmentprogresses its social carereorm agenda, we submittedwritten evidence to the health selectcommittee, and developed proposalswhich will orm the basis o anadvocacy programme in 2012 to embedthe voluntary sectors role in tacklingthe UKs care crisis.

We work in partnership with othermembers o the International Red Crossand Red Crescent Movement across 16countries to help communities tacklehealth and social crises rom peopleliving with HIV in South Arica toyoung people rebuilding their lives aterconfict in Sierra Leone.

For example, we support aKyrgyzstan Red Crescent programmeto help vulnerable women build their

livelihoods and be aware o theirrights. This work includes an advocacyelement, which contributed to a changein the law this year, whereby marriageregistration is now compulsory.Previously, traditional unregisteredmarriages had let women who hadbeen let by their husbands with nolegal rights or standing.

redcross.org.uk/healthandsocialcare

redcross.org.uk/uksocialcare

31,500vulnerable people in theUK used our transport

service to reach medicalappointments or get other

help with daily lie7,700

volunteers in theUK delivering health

and social care

73,000wheelchairs loanedto people to help themstay independent

Im veryhappy or theRed Crosshelp as theytaught mehow to takecare o the kids,demonstrating how

to give the pills when they rststarted taking their treatment.They supported me until I knew

what to doPatricia lives in South Arica and cares or her our

grandchildren, aged between one and our, all o whom

have either HIV or TB

8 British Red Cross Trustees report and accounts 2011

Now I eel morecondent about gettingout and its so nicenot to be stuck in thehouse all the timeSight-impaired Brenda Hall, rom Llanelli,

was visited or several weeks by a

volunteer to help build her confdence

and remain independent

9
http://redcross.org.uk/healthandsocialcarehttp://redcross.org.uk/uksocialcarehttp://redcross.org.uk/uksocialcarehttp://redcross.org.uk/healthandsocialcare


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Building resilience: frst aid andhumanitarian education

We make communities more resilient by teachingpeople how to save lives and encouraging them totake action to help others

A survey we ran this year showed thatjust 3 per cent o the UK populationwould be willing to invest a couple ohours in learning frst aid, and 64 percent ear the responsibility o havingfrst aid skills.

So in September 2011 we launchedEveryday First Aid, a ree onlineresource providing the simplest waypossible to learn basic lie-saving skills.Featuring videos, animation and real-lie scenarios, the resource has beenviewed by 199,000 people since itslaunch and supplements our range oace-to-ace training courses.

Ninety per cent o people whohave taken one o our frst aid courseselt more confdent in using frst aid

as a result; and 76 per cent weremore willing to use those skills in anemergency.

We ollowed this up with the launcho our frst mobile app, so that Android,BlackBerry and iPhone users have accessto the same lie-saving inormation onthe move. The app was downloaded127,300 times in 2011 and 185,000 byMarch 2012.

Over the summer, we continuedour Lie. Live It. campaign, aimed atequipping 11 to 16-year-olds with frstaid skills. Through a cinema trailershown beore the fnal Harry Potter

flm, we showed 2.6 million peoplehow to save an unconscious personslie by pushing them on their side andtilting their head back so their airway isclear. We also took the same message toyouth estivals around the country, witha series o silent disco events, reachingaround 5,000 young people.

redcross.org.uk/frstaid

redcross.org.uk/everydayfrstaid

redcross.org.uk/app

ThankgoodnessI hadcompletedthe frst aidcourse, as theknowledge wasstill resh in

my mind. I just stoppedpanicking and started to slap herback. In less than a minute she

was okay againSayma put her training rom our frst aid course or minority

ethnic groups in Edinburgh into practice when her three-

year-old daughter began to choke

I realised Id basicallyhave to save someoneslie, which was a bito a shock early on a

Wednesday morningWhile on her way to a GCSE English

exam, Hannah Niesser used her frst aid

training to give chest compressions to a

collapsed man

6.4million

people learned about frstaid rom us through public

or media campaigns

370,000ople in the UK took one or frst aid courses in 2011,,000o whom were rom

vulnerable groups

20%o our volunteersare aged 18-26

(6,600 volunteersin total)

183,300people learned about

humanitarian issues andinternational humanitarianlaw through our education

programmes

http://redcross.org.uk/firstaidhttp://redcross.org.uk/everydayfirstaidhttp://redcross.org.uk/apphttp://redcross.org.uk/apphttp://redcross.org.uk/everydayfirstaidhttp://redcross.org.uk/firstaid


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Plans or 2012

In 2012 we have committed that:

1. We will ensure we are ully preparedto meet the potential emergency responsechallenges presented by a year omajor activity in the UK, including theOlympics, Paralympics and QueensDiamond Jubilee.

2. We will grow investment ininternational disaster responseand increase the reach and impacto resilience programming withInternational Red Cross and RedCrescent Movement partners, particularlyin Arica and South Asia.

3. We will teach frst aid to 354,000young people and adults, so they aremore able, confdent and willing to helpsomeone in a crisis.

4. We will urther strengthen the qualityo our services or reugees and asylumseekers by achieving OISC accreditationor the majority o our services and seekinstitutional unding to meet some o theneeds arising rom the signifcant budgetcuts o partners in the reugee sector.

5. We will continue to develop ourhealth and social care services so weare on course to reach 40 per cent morebenefciaries by the end o 2014 witha choice o services that increase theirability to live independently or longer.

6. We will urther strengthen our abilityto measure the outcomes and impact oour work in the UK and internationally. Everything happened

so quickly it was reallyscary so it was reallygood to have those

riendly aces aroundVolunteers were on hand to provide

mother-o-two Holly Gunning with emotional

support and practical advice ater her

home was struck by lightning



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Review o fnances

The organisation continued to grow,with total expenditure in 2011 increasing16 per cent rom 199.2 million to230.9 million. This was supported by a4 per cent increase in our total income to213.8 million.

Charitable expenditure

Our charitable expenditure increasedby 20 per cent to 159.2 million in2011 with the increase mostly in our

emergency response activities.Continued support or the

Haitian earthquake programmes, alongwith cash transers made to support theJapanese earthquake response, resultedin our international emergency responseexpenditure increasing 74 per cent to45.4 million. We also invested urtherin our UK emergency response activities,increasing expenditure by 18 per cent to24.5 million.

Expenditure on resilience programmeshas increased 7 per cent to 39 millionwith the principal increase being in ourwork with National Societies in otherparts o the world.

Our health and social care work isprimarily UK-based and our expenditureon this activity decreased slightly to41.3 million. Expenditure on medicalequipment services decreased by 3.5million to 12.7 million due to the losso a major contract or the provision o

community equipment. This was osetby a 3.4 million increase in our care andsupport programmes.

Fundraising

Voluntary income, which includes incomerom emergency appeals, undraising,regular giving, cash donations andlegacies, increased 10 per cent rom119.9 million to 131.5 million.

Our individual supporters donatedmore than ever beore, throughoutchallenging economic times, with income

rom regular giving increasing 21 per centto 41.9 million.

Charitable income

Around 25 per cent o total incomecomes directly rom charitable activitiesincluding rst aid training ees, healthand social care contracts and grants tosupport our international work.

Our charitable income decreased 8 percent to 52.9 million, due to the loss o

a major community equipment contractas well as a drop in grants to support ourinternational work.

Reserves

Our reserves policy is set to ensurethat there is no disruption o BritishRed Cross services in the event o anunoreseen reduction in income orincrease in expenditure.

The policy sets our minimum reereserves level at 15 million. As at 31December, our ree available reservesamounted to 41.4 million (2010: 54.7million). We have changed many o ourinvestments rom equity to bonds toreduce the eects o market volatilityon us. Together with tighter nancialorecasting and reporting, this will enableus to plan or a lower level o reserves,allowing us to spend more helping peoplein need.

This is consistent with our strategy,

Saving Lives, Changing Lives, whichoutlines plans to draw down on our reeavailable reserves by 2015. We plan todraw down 14.8 million o reserves in2012 and a urther 6.2 million in 2013.

Pensions

The British Red Cross operates twodened benet pension schemes, whichare both closed to new members. The netpension surplus reported in our accountsis 0.7 million as at 31 December2011 (2010 surplus: 1.1 million) and

the actuarial loss during the year was1.6 million (2010: 2 million gain).However, our latest actuarial valuationsor unding purposes showed a net decito 4.4 million.

We also have contingent liabilities inrelation to the membership o the PensionTrusts Growth Plan. The British RedCross has sole liability or 6.5 millionand joint liability with the Order o StJohn or estimated 3 million pension

liabilities o the Joint Committee o theOrder o St John o Jerusalem and BritishRed Cross Society.

Investments

As at 31 December 2011, we held xedasset investments o 49.1 million (2010:58 million). Our investments reportednet losses o 0.6 million in 2011.

An investment sub-committee o thenance and audit committee regularlyreviews our investment portolio andperorms an annual review o our

investment policy. Our investmentobjective is to seek yield subject to arequirement o capital preservation.The investment sub-committee hasreviewed, and is satised with, the overallperormance o the investment portolioagainst its benchmarks.

The British Red Cross will not directlyinvest in shares in, or commercial paperissued by, companies with a signicantinterest in the trading o arms or in

the manuacture o tobacco products.However, it is recognised that the ethicalinvestment policy cannot be appliedwhen investing in pooled money marketor investment unds.


We preparevulnerable groups,including women andchildren, or cyclonesin Char Padma,Bangladesh


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Structure and governance

Legal status

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

governing body, the board o trustees.The legal objects o the British Red

Cross, as laid out in its revised RoyalCharter, are to provide assistance tovictims o armed conficts and to workor the improvement o health, theprevention o disease and the preventionand alleviation o human suering in theUK and throughout the world.

Organisation

The board o trustees comprises nineelected members and up to eight membersco-opted by the board itsel. Newly electedand appointed trustees join the boardat the start o the calendar year in mostinstances.

Their terms o oce last or three years,and they can serve two consecutive three-year terms, ater which they must standdown rom the board or at least one year.A nominations group oversees recruitmento co-opted trustees. The recruitment o

elected trustees is conducted via a nationalelectoral college o eight volunteer councilchairs. The board o trustees raties theresult.

The nance and audit committeeoversees the organisations nancialtransactions. This committee has beengiven specic responsibilities and makesrelevant recommendations to the board.

While the approval o policy is a matteror the board, that body works closelywith the chie executive and his colleagueson the senior management team, which ischarged with the implementation o policy.

A wholly-owned trading subsidiary,Britcross Limited, supports theundraising activities o the BritishRed Cross. The assets, liabilities andtrading results o this company, which isincorporated in the UK, are consolidatedinto the nancial statements. The BritishRed Cross has eight Overseas Branchesin British Overseas Territories and thesehave also been included in the nancialstatements.

The British Red Cross is a membero the International Red Cross and RedCrescent Movement, with volunteersand sta contributing to a number oinitiatives in both the InternationalFederation o Red Cross and RedCrescent Societies (Federation) and theInternational Committee o the RedCross (ICRC).

Volunteers carry out a wide rangeo activities, including responding toemergencies, rst aid, delivering healthand social care and humanitarianeducation programmes, supportingreugees and asylum seekers, andundraising. Without them, we couldnot carry out this lie-saving and lie-changing work.

Risk management

Achievement o the charitys aims andobjectives entails taking risks. The systemo internal control is designed to manage

risk to a reasonable degree rather thanto eliminate all risk o ailure relating toachieving aims and objectives.

The trustees are responsible orensuring the charity has eective riskmanagement and internal control systemsin place. The board reviews signicantrisks and ensures reasonable measureshave been taken to manage risks.

Senior management has responsibilityor managing resources, monitoringperormance, and establishing andmaintaining eective internal controlsystems. This is supported by clearly

documented management systems,processes and procedures.

The system o internal control and riskmanagement is designed to:

> identiy and prioritise the strategicand operational risks to theachievement o the charitys aims andobjectives;

> evaluate the likelihood o those risks

being realised and their potentialimpact; and

> manage these risks eciently,eectively and economically.

The trustees are satised thatappropriate internal control systemsand risk management processes are inplace. They consider that the ollowingramework provides the charity withadequate measures to reduce the impacto identied risks:

> The nance and audit committeereviews risk and internal controls andreceives regular reports rom seniormanagement.

> The committee approves the annualrisk-based internal audit plan, whichcovers major risks as identied bymanagement and trustees. It receivesinternal audit reports, regular progressreports and risk updates. Internal

audit reports identiy areas orimprovement in the internal control,risk and governance environment.

> Senior management reviews keystrategic and operational risks on aregular basis. They consider progresson mitigating actions, new andemerging risks, and opportunities.

> Management identies, evaluatesand manages risks within their areasrom planning to delivery o service.Progress is reported quarterly via

The British RedCross has more than320 charity shopsacross the UK



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divisional and departmental updates.This is analysed and reported to seniormanagement on a regular basis.

> Board sub-committees andmanagement groups help identiy,evaluate and manage risks relatingto undraising, investments, businesscontinuity, health and saety,remuneration, major inrastructureand IT projects, and operational

needs including health and socialcare, emergency response and theOlympics.

Work in this area is continuing with animprovement plan to urther enhancethe eectiveness o risk managementactivities and ensure consistency in itsapplication across the charity.

The most signicant risks to thecharity include the impact o governmentpolicy including the spending review,undraising, reputation, security andsaety o sta and volunteers, saety obeneciaries, workorce capacity andcapability, management inormation,IT inrastructure and the challenges ooperating major relie programmes.

Trustees responsibilities

The trustees prepare consolidatednancial statements or each nancialyear. These give a true and air view o

the state o the British Red Cross ando the annual results. In preparing thenancial statements, the trustees have:

> selected suitable accounting policiesand applied them consistently;

> made judgements and estimates thatare reasonable and prudent;

> ollowed applicable accountingstandards without any materialdepartures;

> prepared the accounts on a goingconcern basis.

Financial statements are published on theorganisations website (redcross.org.uk) inaccordance with legislation in the UnitedKingdom governing the preparation anddissemination o nancial statements,which may vary rom legislation in otherjurisdictions. The trustees responsibilitiesalso extend to the ongoing integrity o the

nancial statements contained therein.Trustees participated in a range

o development activities during theyear. From visits to British Red Crossareas, services and events, to externalconerences, the British Red Cross ensuresits board members are kept abreast odevelopments in the sector, as well asgiven the opportunity to broaden theirskills and experiences to assist them indischarging their duties eectively.

Public beneft

The board o trustees has given regard tothe legislative and regulatory requirementsor disclosing how its charitable objectives(as set out in our Royal Charter) haveprovided benet to the public. The boardo trustees has complied with the dutyset out in Section 4 o the Charities Act2011, and that set out by the Oceo the Scottish Charity Regulator inthe Charities and Trustee Investment

(Scotland) Act 2005. This report outlineshow our achievements during 2011 havebeneted the public, either directly orindirectly.

On behal o the trustees

James M. T. CochraneChairman o the board o trustees28 March 2012

Independent auditors report tothe trustees o British Red Cross

We have audited the nancial statementso the British Red Cross Society or theyear ended 31 December 2011 whichcomprise the Consolidated Statement oFinancial Activities, the ConsolidatedBalance Sheets, the Consolidated CashFlow Statement and the related notes.The nancial reporting ramework thathas been applied in their preparationis applicable law and United KingdomAccounting Standards (United Kingdom

Generally Accepted Accounting Practice).This report is made solely to

the charitys trustees, as a body, inaccordance with the Charities Act2011 and the Charities and TrusteeInvestment (Scotland) Act 2005. Ouraudit work has been undertaken so thatwe might state to the charitys trusteesthose matters we are required to stateto them in an auditors report and orno other purpose. To the ullest extentpermitted by law, we do not accept orassume responsibility to anyone otherthan the charity and the charitys trusteesas a body, or our audit work, or thisreport, or or the opinions we haveormed.

Respective responsibilities o

trustees and auditor

As explained more ully in the TrusteesResponsibilities Statement (set out onpage 18), the trustees are responsible

or the preparation o the nancialstatements and or being satised thatthey give a true and air view.

We have been appointed as auditorunder section 44(1)(c) o the Charitiesand Trustee Investment (Scotland)Act 2005 and under section 144 othe Charities Act 2011 and report inaccordance with regulations made underthose Acts. Our responsibility is to auditand express an opinion on the nancialstatements in accordance with applicablelaw and International Standards onAuditing (UK and Ireland).

Those standards require us to complywith the Auditing Practices Boards(APBs) Ethical Standards or Auditors.

Scope o the audit o the fnancial

statements

A description o the scope o an audito nancial statements is provided on theAPBs website at www.rc.org.uk/apb/scope/private.cm.

Opinion on fnancial statementsIn our opinion the nancial statements:

> give a true and air view o the stateo the groups and the parent charitysaairs as at 31 December 2011ando the groups incoming resources andapplication o resources or the yearthen ended;

> have been properly prepared inaccordance with United KingdomGenerally Accepted AccountingPractice; and

> have been prepared in accordancewith the Charities Act 2011, theCharities and Trustee Investment(Scotland) Act 2005 and regulations6 and 8 o the Charities Accounts(Scotland) Regulations 2006 (asamended).

Matters on which we are required toreport by exception

We have nothing to report in respecto the ollowing matters where theCharities Act 2011 and the CharitiesAccounts (Scotland) Regulations 2006 (asamended) requires us to report to you i,in our opinion:

> the inormation given in the TrusteesAnnual Report is inconsistent in anymaterial respect with the nancialstatements; or

http://www.frc.org.uk/apb/scope/private.cfmhttp://www.frc.org.uk/apb/scope/private.cfmhttp://www.frc.org.uk/apb/scope/private.cfmhttp://www.frc.org.uk/apb/scope/private.cfm


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> proper and sucient accountingrecords have not been kept; or

> the parent charitable companysnancial statements are not inagreement with the accountingrecords or returns; or

> we have not received all theinormation and explanations werequire or our audit.

BDO LLP

Statutory AuditorEpsomUnited KingdomDate: 28 March 2012

BDO LLP is eligible to act as anauditor in terms o section 1212 o theCompanies Act 2006.

BDO LLP is a limited liability partnershipregistered in England and Wales (withregistered number OC305127).

Guei, 24, was oneo thousands o reugeesrom confict in the IvoryCoast who the Red Crosshelped with water andother essentials whenthey reached Liberia



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7m

Emergency

respon

se

andreco

very

Accounts or the year ended31 December 2011

Summary o income and expenditureor the year ended 31 December 2011

Income 213.8m

Expenditure 230.9m

Consolidated statement o fnancial activitiesor the year ended 31 December 2011

26.5

mTrading

activities

15.5

mResilienc

e

21.6

mHealtha

ndsocialc

are

8.8m

Supportin

gth

e

Movem

ent

2.9m

Oth

erand

investm

ent

23.6m

Tradingactivities

45.5m

Cost

ofvolunta

ry

income

69.9m

Emergencyrespo

nse

an

dreco

very

39mR

esilie

nce

41.3m

Healthandsocialc

are

9mSu

pportin

gth

eMovem

ent

2.6mG

overnancecosts

NotesUnrestricted

mRestricted

m

2011Total

m

2010Total

m

Incoming resources

Incoming resources rom generated unds

Voluntary income 2 94.4 37.1 131.5 119.9

Trading activities 26.5 - 26.5 24.8

Investment income 0.3 - 0.3 0.6

Total incoming resources rom generated unds 121.2 37.1 158.3 145.3

Incoming resources rom charitable activities

Emergency response and recovery 3.3 3.7 7.0 9.3

Resilience 14.7 0.8 15.5 15.3

Health and social care 21.0 0.6 21.6 25.1

Supporting the Movement 0.4 8.4 8.8 7.9

Total incoming resources rom charitable activities 3 39.4 13.5 52.9 57.6

Other incoming resources

Miscellaneous income 0.6 - 0.6 1.1

Net gains on disposal o tangible xed assets 2.0 - 2.0 1.7

Total incoming resources 163.2 50.6 213.8 205.7

Resources expended

Costs o generating unds

Voluntary income 44.6 0.9 45.5 40.3

Trading activities 23.6 - 23.6 23.5

Total resources expended on generating unds 68.2 0.9 69.1 63.8

Costs o charitable activities

Emergency response and recovery 28.2 41.7 69.9 46.8

Resilience 31.6 7.4 39.0 36.3

Health and social care 39.7 1.6 41.3 41.4


Total resources expended on charitable activities 101.5 57.7 159.2 132.8

Governance costs 2.6 - 2.6 2.6

Total resources expended 4 172.3 58.6 230.9 199.2

Net (outgoing) / incoming resources beore transers (9.1) (8.0) (17.1) 6.5

Transers between unds 7 - - - -

Net (outgoing) / incoming resources beore recognised

gains and losses (9.1) (8.0) (17.1) 6.5

Losses on current asset investments (0.3) - (0.3) (0.2)

(Losses) / gains on xed asset investments 9 (0.9) 0.3 (0.6) 1.7

Actuarial (losses) / gains on dened benet pension schemes 14 (1.6) - (1.6) 2.0

Net movement in unds (11.9) (7.7) (19.6) 10.0

Total unds - 1 January 7 110.4 45.4 155.8 145.8

Total unds - 31 December 7 98.5 37.7 136.2 155.8

All the activities relate to continuing operations.

131

.5mVolu

ntary

income

2322 B ri tis h R ed Cr os sTrustees report and accounts 2011


14/27

Consolidated balance sheetas at 31 December 2011

Notes2011

m2010

m

Fixed assets

Tangible xed assets 8 64.4 63.8

Investments 9 49.1 58.0

113.5 121.8

Current assets

Stocks 4.2 3.3

Debtors 10 30.9 29.0

Investments 9 6.6 11.2

Cash at bank and in hand 4.0 10.4

45.7 53.9

Current liabilities

Creditors: amounts alling due within one year 11 (20.0) (17.4)

Net current assets 25.7 36.5

Total assets less current liabilities 139.2 158.3

Creditors: amounts alling due in more than one year (0.3) (0.3)

Provision or liabilities and charges 12 (3.4) (3.3)

Net assets beore pension scheme surplus 135.5 154.7

Dened benet pension scheme surplus 14 0.7 1.1

Net assets 7 136.2 155.8

Funds:

Restricted unds 7 37.7 45.4

Unrestricted unds tangible xed assets 56.4 54.6

Dened benet pension scheme und 0.7 1.1

Free available reserves 41.4 54.7

Unrestricted unds 7 98.5 110.4

Total unds 136.2 155.8

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

For and on behal o the British Red Cross,

James Cochrane David HowellChairman, board o trustees Chairman, nance and audit committee

28 March 2012 28 March 2012

Consolidated cash ow statementor the year ended 31 December 2011

Notes2011

m2010

m

Net cash (outow) / inow rom operating activities (see below) (13.7) 8.4

Capital expenditure and nancial investment 16 3.0 (19.4)

(10.7) (11.0)

Decrease in current asset investments 4.3 9.7

Decrease in cash 17 (6.4) (1.3)

Reconciliation o net incoming resources to net cash outow rom operating activities

Net (outgoing) / incoming resources (17.1) 6.5

Depreciation charge 6.7 6.5

Net gains on disposal o tangible xed assets (2.0) (1.7)

Increase in stocks (0.9) (0.4)

Increase in debtors (1.9) (1.5)

Increase in creditors 2.6 2.0

Increase / (decrease) in provisions or liabilities and charges 0.1 (2.2)

Net charges or dened benet pension scheme (1.2) (0.8)

Net cash (outow) / inow rom operating activities (13.7) 8.4

Reconciliation o net unds to movement in short-term unds less borrowing

Decrease in cash (6.4) (1.3)

Decrease in current asset investments (4.3) (9.7)

(10.7) (11.0)

Losses on current asset investments (0.3) (0.2)

(11.0) (11.2)

Net short-term unds less borrowing at 1 January 21.3 32.5

Net short-term unds less borrowing at 31 December 17 10.3 21.3

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



15/27

Notes to the consolidated fnancial statementsor the year ended 31 December 2011

1. Accounting policies

(a) Scope and basis o the fnancial statements

The consolidated nancial statements have been preparedunder the historical cost convention, as modied by therevaluation o investments at market value, and are inaccordance with Accounting and Reporting by Charities:Statement o Recommended Practice (Revised 2005) (theSORP), applicable accounting standards in the UnitedKingdom and the reporting requirements o the CharitiesAct 2011.

The results and balance sheet o the British Red Crosssubsidiary, Britcross Limited, have been consolidated on aline by line basis. Britcross Limited makes up accounts to

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

The nancial statements incorporate the results o allmaterial activities overseas where the British Red Crosshas operational responsibility. The results and net assets oRed Cross operations in eight British Overseas Brancheshave been included in the nancial statements.

(b) Fund accounting

General unrestricted unds are available or use at thediscretion o the trustees in urtherance o the generalcharitable objectives. A pension reserve is included withinunrestricted unds to refect the pension surplus.

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

(c) Incoming resources

All income is accounted or when the British Red Crosshas entitlement to the unds, the amount can be quantiedand there is certainty o receipt. Where income is receivedin advance o providing goods and/or services, it isdeerred until the British Red Cross becomes entitled tothat income.

Unless there is evidence o uncertainty o receipt, residuarylegacies are recognised rom the date o probate where areliable estimate o income can be made. Income rom willor reversionary trusts is not recognised until the lie interesthas passed away. Income rom pecuniary legacies isrecognised upon notication.

Disasters Emergency Committee (DEC) appealincome is recognised to the extent that resources havebeen committed on programmes unded through theDEC appeals.

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

(d) Resources expended and basis o allocationo cost

All expenditure is accounted or on an accruals basis.

Direct costs are those specically related to producingthe output o an activity, or example the costs incurred indirect contact with beneciaries.

Support costs are those which provide indirect support to

ront-line output provision examples are central nance,human resources and management inormation services.Support costs not attributable to a single activity have beenallocated on a basis consistent with identied cost driversor that cost category such as sta head count, foor spaceand expenditure.

Governance costs relate to the direct running o thecharity, allowing the charity to operate and generate theinormation required or public accountability. They includethe costs o subscriptions related to membership o theInternational Red Cross and Red Crescent Movement,as well as the costs o trustee meetings and internal andexternal audits.

(e) Tangible fxed assets and depreciation

All tangible xed assets costing more than 1,000are capitalised and included at cost, including anyincidental expenses o acquisition and irrecoverable VAT.Depreciation is provided on a straight-line basis over theiruseul economic lives as ollows:

Freehold properties 50 years

Leasehold properties

> Shop prem ises the sho rter o the term o thelease and ve years

> Other premises the shorter o the term o the

lease and 50 yearsFreehold premisesimprovements

ten years

Leasehold premisesimprovements

the shorter o the term o thelease and ten years

Ambulances seven years

Other vehicles ve years

Equipment and urniture ve years

Computer equipment andsotware

between one and three years

Freehold land nil

Assets in course oconstruction

nil

() Pensions

The dened benet pension scheme current service costs,together with the scheme interest cost less the expectedreturn on the scheme assets or the year, are charged tothe relevant expenditure heading within the consolidatedstatement o nancial activities in line with the salary costso the related employees. The dened benet schemeassets are measured at air value at the balance sheetdate. Scheme liabilities are measured on an actuarial basisat the balance sheet date using the projected unit methodand discounted at a rate equivalent to the current rate oreturn on a high-quality corporate bond o equivalent termto the scheme liabilities. The change in value o assets andliabilities arising rom asset valuation, changes in benets,actuarial assumptions, or change in the level o decit

attributable to members is recognised in the consolidatedstatement o nancial activities within actuarial gains/losseson dened benet pension schemes. The resulting denedbenet asset or liability is presented separately on the aceo the balance sheet. The British Red Cross recognisesassets or its dened benet pension schemes to theextent that they are considered recoverable with reerenceto expected uture current service costs or active schememembers.

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

(g) Investments

Investments are stated at market value at the balancesheet date and the consolidated statement o nancialactivities shows net investment gains and losses arising romrevaluation o the investment portolio and disposals duringthe year.

(h) Stocks

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

(i) Value added tax

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

(j) Provisions

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

(k) Operating leases

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

Benets received and receivable as an incentive to signan operating lease are, similarly, spread on a straight-linebasis over the lease term, except where the period tothe review date on which the rent is rst expected to beadjusted to the prevailing market rate is shorter than the ulllease term, in which case the shorter period is used.

(l) Foreign currencies

The British Red Cross uses orward exchange contracts

to hedge some o its known oreign exchange exposure.Transactions in oreign currencies are recorded at therate o exchange prevailing at the date o the transaction,except where a orward contract is in place, in which casethe rate specied in the contract is used.

Monetary assets and liabilities are translated into sterling atthe exchange rate ruling on the balance sheet date, exceptwhere a orward contract is in place, in which case therelevant asset/liability is translated at the rate contained inthe contract.

Foreign exchange gains are recognised as other incomeand oreign exchange losses are recognised in theconsolidated statement o nancial activities within therelevant charitable activity expenditure or the period inwhich they are incurred.



16/27


2. Voluntary income

Unrestrictedm

Restrictedm

2011Total

Unrestrictedm

Restrictedm

2010Total

Regular giving 41.9 - 41.9 34.6 - 34.6

Pu bli c don ati ons, appeals and undrai sin g 19.0 26.0 45.0 17.6 20.7 38.3

Service donations 2.4 0.1 2.5 2.4 0.1 2.5

Git aid 12.3 1.8 14.1 10.5 1.8 12.3

Legacies 18.8 0.9 19.7 21.5 0.6 22.1

Disasters Emergency Committee appeals - 8.3 8.3 - 8.4 8.4

Grants - - - - 1.7 1.7

Total 94.4 37.1 131.5 86.6 33.3 119.9

Legacy income is not recognised until the British Red Cross has entitlement to the unds, the amount can be quantied

and there is certainty o receipt. The estimated value o legacies, which have been notied but not recognised at 31December 2011, was 7.4 million (2010: 9.2 million) o which 6.4 million (2010: 6.6 million) are assets bequeathed tothe British Red Cross, but subject to lie tenancy.

Disasters Emergency Committee (DEC) appeal income is recognised to the extent that resources have been committedon programmes unded through the DEC appeals. Subject to our agreed allocation, the value o DEC appeal income notdrawn down or accrued or at 31 December 2011 was 2.6 million (2010: 5.5million).

3. Incoming resources rom charitable activities

Grantsm

Otherm

2011Total

mGrants

mOther

m

2010Total

m

Emergency response and recovery

UK 0.8 3.1 3.9 0.2 2.8 3.0

International 3.1 - 3.1 6.1 0.2 6.3

3.9 3.1 7.0 6.3 3.0 9.3

Resilience

UK 0.2 14.7 14.9 0.6 14.0 14.6

International 0.6 - 0.6 0.5 0.2 0.7

0.8 14.7 15.5 1.1 14.2 15.3


Medical equipment services 0.3 6.6 6.9 0.3 10.7 11.0Care and support programmes 3.5 11.2 14.7 3.3 10.8 14.1

3.8 17.8 21.6 3.6 21.5 25.1

Supporting the Movement 7.2 1.6 8.8 6.2 1.7 7.9

Total 15.7 37.2 52.9 17.2 40.4 57.6

Supporting the Movement grant income is mainly rom the Department or International Development (DFID). 1.2 million(2010: 1.1 million) was received as part o our Partnership Programme Agreement (replacing the Strategic FrameworkAgreement), which provides core unding or our international work to strengthen urther the eectiveness o theInternational Red Cross and Red Crescent Movement as a key pillar o the international humanitarian system. 6.0 million(2010: 5.1 million) was received as part o our Institutional Strategy agreement with the International Federation o RedCross and Red Crescent Societies (IFRC), which provides unding or their programmes and operations.

The charity v has supported our youth volunteering, Future Jobs Fund and National Citizen Service activities. The incomeor 2011 is 187,000 (2010: 90,000).

4. Resources expended

Directcosts

m

Supportcosts

m

2011Total

m

2010Total

m

Costs o generating unds

Voluntary income 44.3 1.2 45.5 40.3

Trading activities 22.9 0.7 23.6 23.5

67.2 1.9 69.1 63.8

Charitable activities

Emergency response and recovery

UK 23.1 1.4 24.5 20.7

International 44.6 0.8 45.4 26.1

67.7 2.2 69.9 46.8

Resilience

UK 25.8 2.1 27.9 25.2

International 10.8 0.3 11.1 11.1

36.6 2.4 39.0 36.3


Medical equipment services 11.8 0.9 12.7 16.2

Care and support programmes 25.9 2.7 28.6 25.2

37.7 3.6 41.3 41.4


150.9 8.3 159.2 132.8

Governance costs

Subscriptions to Federation 1.9 - 1.9 1.6

Sta 0.3 - 0.3 0.6

Fees to auditors or audit o nancial statements 0.1 - 0.1 0.1

Fees to auditors or other services - - - -

Other 0.2 0.1 0.3 0.3

2.5 0.1 2.6 2.6

Total 220.6 10.3 230.9 199.2

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

Our total resources expended includes irrecoverable VAT o 2.9m (2010: 2.1m).

Included under 2011 direct costs are grants to the International Federation o Red Cross and Red Crescent Societies(IFRC) and International Committee o the Red Cross (ICRC) o 20.1 million (2010: 19.5 million) and grants to otherNational Societies o 22.2 million (2010: 6.6 million).



17/27


5. Support costs by activity

Cost ogenerating

undsm

Emergencyresponse

andrecovery

mResilience

m

Health andsocial care

m

Supportingthe

Movementm

Governancem

2011Totalm

2010Total

m

Finance 0.8 0.9 0.5 0.4 - - 2.6 2.4

Human resources and central

acilities 0.6 0.6 0.9 1.6 - - 3.7 3.6

Management inormation

services 0.4 0.6 0.9 1.5 0.1 0.1 3.6 3.4

Central management 0.1 0.1 0.1 0.1 - - 0.4 0.4

Total 1.9 2.2 2.4 3.6 0.1 0.1 10.3 9.8

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

6. Trading subsidiary

Britcross Limited, the British Red Cross wholly owned trading subsidiary incorporated in the United Kingdom, engages inthe sale o cards and gits as well as corporate sponsorship in aid o the British Red Cross. The turnover and expenditureincluded within trading activities are:

2011m

2010m

Turnover 1.4 1.4

Expenditure (0.9) (0.9)

Net income donated to British Red Cross 0.5 0.5

The assets and liabilities o Britcross Limited consolidated within the balance sheet are: 2011m

2010m

Current assets 0.8 0.7

Current liabilities (0.8) (0.7)

Net assets - -

7. Funds

Balance1 January

2011m

Incomem

Expenditurem

Netinvestment

gain /(losses)

m

Actuariallosses on

defnedbeneft

pensionm

Transersm

Balance 31December

2011m

Total unrestricted unds 110.4 163.2 (172.3) (1.2) (1.6) - 98.5

Total UK restricted unds 17.1 3.8 (6.8) 0.1 - - 14.2

Haiti earthquake 9.0 4.9 (7.2) - - - 6.7

Japan - 14.4 (14.2) - - - 0.2

Other international restricted unds 13.3 26.9 (27.4) 0.2 - (0.5) 12.5

Total international restricted unds 22.3 46.2 (48.8) 0.2 - (0.5) 19.4

Disaster Fund 6.0 0.6 (3.0) - - 0.5 4.1

Total restricted unds 45.4 50.6 (58.6) 0.3 - - 37.7

Total unds 155.8 213.8 (230.9) (0.9) (1.6) - 136.2

Restricted unds

Expenditure plans have been agreed or all material restricted unds. Funds are held in appropriate asset categories inaccordance with planned usage.

UK restricted undsUK restricted unds include:

> 7 million o properties and other tangible xed assets held or restricted purposes> a variety o local, national and European unding sources to deliver projects over the next 2-3 years> legacies with a geographical and/or service restriction.

The balance o UK restricted unds is held or the provision o locally agreed services.

International restricted undsSignicant programmes o work are planned or the disbursement o international restricted und balances as at

31 December 2011. Other international restricted unds include:

> 2.4 million o stock or international programmes> 1.5 million represented by net assets o the Overseas Branches.

Disaster FundThe Disaster Fund allows us to prepare or and respond to humanitarian disasters abroad and in the UK. We undraisespecically or the Disaster Fund and, as stated on emergency appeal materials, it can also contain unds donated toemergency appeals where we raise more than can be reasonably and eciently spent on that specic response.



18/27


8. Tangible fxed assets

Cost

Freeholdproperty

m

Leaseholdproperty

m

Vehicles,equipment

and urniturem

Assets in thecourse o

constructionm

Totalm

At 1 January 2011 45.9 34.2 41.2 0.6 121.9

Completions 0.1 0.1 0.3 (0.5) -

Additions 2.5 - 3.5 2.0 8.0

Disposals (0.5) (0.5) (1.1) - (2.1)

At 31 December 2011 48.0 33.8 43.9 2.1 127.8

Accumulated depreciation

At 1 January 2011 13.1 11.6 33.4 - 58.1Charge 1.8 1.1 3.8 - 6.7

Disposals (0.2) (0.2) (1.0) - (1.4)

At 31 December 2011 14.7 12.5 36.2 - 63.4

Net book value

At 31 December 2011 33.3 21.3 7.7 2.1 64.4

At 31 December 2010 32.8 22.6 7.8 0.6 63.8

9. Investments

TotalmFixed assets investments

Market value - 1 January 2011 58.0

Additions at cost 3.0

Disposals at market value (11.3)

Net investment losses in the year (0.6)

Market value - 31 December 2011 49.1

Cost - 31 December 2011 47.1

Market value2011m

Per cent o2011portolio

Market value2010m

Per cent o2010portolioThe portolio consists o the ollowing:

UK equities 7.8 16% 86.0 15%

Overseas equities 5.9 12% 6.3 11%

UK xed income 35.4 72% 43.1 74%

49.1 58.0

The ollowing investments represented more than 5per cent o the value o the portolio at 31 December 2011

Numbero units

Marketvalue

m

Per cent oportolio

Lazard Thematic Global Institutional Share Class 67,350 5.9 12%

Legal & General CAF UK Equitrack 12,988,700 7.5 15%

Black Rock Ultra Short Bond Fund 287,196 35.4 72%

Current asset investments2011

m2010

m

Royal Bank o Scotland Global Treasury Funds plc 6.2 4.1

BlackRock - Institutional Sterling Liquidity Fund - 1.0

6.2 5.1

Deposits 0.4 5.4

Investment property in the UK - 0.7

Total 6.6 11.2



19/27


10. Debtors

2011m

2010m

Trade debtors 4.6 6.5

Accrued income 6.9 4.7

Other debtors 1.0 0.4

Prepayments 3.5 3.3

Tax recoverable 4.4 4.0

Legacies receivable 10.5 10.1

Total 30.9 29.0

All amounts shown under debtors all due or payment within one year.

11. Creditors: amounts alling due within one year

2011m

2010m

Trade creditors 3.3 2.1

Accruals 12.0 10.9

Other creditors 1.2 1.1

Deerred income 1.9 2.0

Taxes and social security costs 1.6 1.3

Total 20.0 17.4

Movements in deerred income during the year were as ollows:2011

m2010

m

At 1 January 2.0 2.6

Income recognised during the year (2.0) (2.6)

Income deerred during the year 1.9 2.0

At 31 December 1.9 2.0

12. Provisions or liabilities and charges

Rehabilitationcommitments

m

Leaseholddilapidations

mTotal

m

At 1 January 2011 1.2 2.1 3.3

Payments during the year (1.2) (1.5) (2.7)

Increase in provision 1.1 1.7 2.8

At 31 December 2011 1.1 2.3 3.4

Amounts expected to be incurred:

- within one year 1.1 1.3 2.4

- beyond one year - 1.0 1.0

1.1 2.3 3.4

The provision or rehabilitation commitments as at 31 December 2011 includes amounts committed in Haiti orlivelihood grants.

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

13. Sta emoluments and trustee expenses

Total sta emoluments (including casual sta) or the year were as ollows:2011

m2010

m

Salary costs 68.7 63.0

National insurance costs 5.9 5.4

Pensions costs 1.0 1.2

75.6 69.6

The number o employees whose emoluments, as defned or taxation purposes(basic pay, vehicle and medical insurance benefts), amounted to over 60,000 inthe year were as ollows: 2011 2010

60,001 - 70,000 6 870,001 - 80,000 6 6

80,001 - 90,000 3 5

90,001 - 100,000 5 2

100,001 - 110,000 1 1

110,001 - 120,000 2 1

170,001 - 180,000 - 1

180,001 - 190,000 1 -

Five (2010: ve) o the above employees have retirement benets accruing to them under dened benet pensionschemes. The total cost o the contributions to these dened benet schemes made by the British Red Cross or theseemployees was 106,000 (2010: 94,000).

Thirteen (2010: ourteen) o the above employees are members o a dened contribution scheme. The total cost o thecontributions to this scheme made by the British Red Cross or these employees was 81,000 (2010: 61,000).



20/27


13. Sta emoluments and trustee expenses (continued)

The average number o ull-time equivalent sta employed by the British Red Crossduring the year was as ollows: 2011 2010

In the UK

Fundraising 171 147

Retail 547 544

UK services 1,475 1,417

First aid services 405 379

International services 72 66

Other 280 249

Overseas


Total employed by FTE 3,015 2,856

Total employed by headcount 3,547 3,364

The average number o volunteers working or the British Red Cross during the yearwas as ollows: 2011 2010

In the UK

Fundraising 3,813 3,758

Retail 6,456 6,020

UK services 13,571 12,382

First aid services 8,242 8,315


Total 32,500 30,884

Trustees expenses:2011000

2010000

Expenses incurred by trustees and reimbursed by theBritish Red Cross 15 12

Expenses incurred by the British Red Cross on behal o trustees 26 16

Trustees indemnity insurance cover cost 14 15

2011 2010

Number o trustees receiving expenses 18 15

Trustees expenses are or travel and accommodation costs.

None o the trustees received any remuneration during the year (2010: nil).

14. Pensions

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

UK Ofce and Scottish defned beneft pension schemes

The assets o these pension schemes are held in separate trustee-administered unds. The schemes are subject totriennial valuations with the last ull valuation being carried out as at 31 December 2010 or the UK Oce scheme and 1January 2009 or the Scottish scheme. These valuations were updated at 31 December 2010 and 2011 by independentactuaries on a Financial Reporting Standard 17 Retirement Benefts (FRS 17) basis.

The amounts charged to statement o fnancial

activities are:

UK Ofce

schemem

Scottish

schemem

2011

Totalm

2010

Totalm

Current service cost 0.3 0.1 0.4 0.3

Interest cost on scheme liabilities 1.1 0.3 1.4 1.5

Expected return on plan assets (1.4) (0.4) (1.8) (1.7)

Net fnance credit (0.3) (0.1) (0.4) (0.2)

Actual return less expected return on pension assets 0.7 - 0.7 1.3

Experience (losses) / gains on liabilities 0.4 (0.5) (0.1) 0.7

Actuarial gain arising rom government changes to statutorypension increases - - - 1.6

Other changes in assumption underlying the present value oscheme liabilities (1.1) (0.5) (1.6) (1.6)

Total actuarial (loss) / gain - (1.0) (1.0) 2.0

Less movement in restriction o surplus (0.6) - (0.6) -

Net actuarial (loss) / gain recognised (0.6) (1.0) (1.6) 2.0

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



21/27


14. Pensions (continued)

The amounts recognised in the balance sheet are: UK Ofcescheme

m

Scottishscheme

m

2011Total

m

2010Total

m

Fair value o plan assets 25.0 6.5 31.5 28.8

Present value o scheme obligations (21.1) (7.6) (28.7) (26.2)

Restriction o scheme surplus (2.1) - (2.1) (1.5)

Net surplus / (defcit) 1.8 (1.1) 0.7 1.1

The British Red Cross has recognised the UK Oce scheme surplus to the extent that it is considered recoverablethrough uture service cost o the remaining members.

Changes in present value o scheme obligation

during the year:

UK Ofce scheme Scottish scheme

2011m

2010m

2011m

2010m

At 1 January 19.8 19.1 6.4 6.7

Service cost 0.3 0.2 0.1 0.1

Interest cost 1.1 1.2 0.3 0.4

Member contributions - 0.1 - -

Benets paid (0.8) (0.8) (0.2) (0.1)

Actuarial gain arising rom government changes to statutory

pension increases - (1.1) - (0.5)

Actuarial losses due to changes in other assumptions 1.1 1.1 0.5 0.5

Actuarial (gain) / loss due to experience (0.4) - 0.5 (0.7)

At 31 December 21.1 19.8 7.6 6.4

Change in th e value o plan assets during the year: UK Ofce scheme S cottish scheme

2011m

2010m

2011m

2010m

At 1 January 23.0 20.6 5.8 5.1

Expected return 1.4 1.3 0.4 0.4

Employer contributions 0.7 0.7 0.5 0.2

Member contributions - 0.1 - -

Benets paid (0.8) (0.8) (0.2) (0.1)

Actuarial gain on plan assets 0.7 1.1 - 0.2

At 31 December 25.0 23.0 6.5 5.8

The British Red Cross expects to make employer contributions in 2012 o 255,000 or the UK Oce scheme and511,000 or the Scottish scheme.

The major categories o plan assets as a percentage ototal plan assets are:

UK Ofce scheme Scottish scheme

2011 2010 2011 2010

Equities 44% 52% 57% 68%

Bonds 55% 47% 42% 31%

Cash 1% 1% 1% 1%

100% 100% 100% 100%

14. Pensions (continued)

Principal actuarial assumptions at the balance sheet date were:2011% pa

2010% pa

Discount rate 4.7 5.4

Retail price infation (RPI) 3.3 3.8

Consumer price infation (CPI) 2.6 3.1

Salary increases 2.6 4.8

UK Oce scheme pension increases

Capped at 5.0% 2.6 3.1

Capped at 3.0% 2.6 2.7

Capped at 2.5% 2.2 2.4

Scottish scheme pension increases

Pre-2005 increases 3.3 3.1

Post-2005 increases 2.2 2.4

Expected return on equities 6.5 7.7

Expected return on bonds 3.0 4.2

Expected return on cash 1.1 0.8

Mortality asumptions adopted at the year end imply the ollowinglie expectancy at 65: Years Years

Pensioners: male 22.5 21.6

Pensioners: emale 25.0 24.0

Non-pensioners: male 24.8 23.5

Non-pensioners: emale 27.4 25.9

History or current and previous periods: UK Ofce scheme

2011m

2010m

2009m

2008m

2007m

Present value o scheme obligations (21.1) (19.8) (19.1) (15.5) (19.1)

Fair value o plan assets 25.0 23.0 20.6 18.3 21.1

Surplus 3.9 3.2 1.5 2.8 2.0

Restriction o surplus (2.1) (1.5) (1.5) (2.8) (2.0)

Reported surplus 1.8 1.7 - - -

Experience gains / (losses)

on liabilities 0.4 - - (0.5) (0.1)

on assets 0.7 1.1 1.2 (3.7) 0.1



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History or current and previous periods: Scottish scheme

2011m

2010m

2009m

2008m

2007m

Present value o scheme obligations (7.6) (6.4) (6.7) (4.8) (5.5)

Fair value o plan assets 6.5 5.8 5.1 4.2 4.7

Defcit (1.1) (0.6) (1.6) (0.6) (0.8)

Experience gains / (losses)

on liabilities (0.5) 0.7 - - 0.2

on assets - 0.2 0.4 (1.1) (0.3)

Other schemes

The British Red Cross also contributes to the Pensions Trust schemes and other contribution schemes or certainemployees. In 2011 the total cost o these contributions was 973,000 (2010: 909,000). The Pensions Trust schemeswhich are oered to all sta are the Unitised Ethical Plan or the Flexible Retirement Plan. Both o these schemes aredened contribution schemes.

Sta were able to join the Pensions Trusts Growth Plan until April 2007. The Pensions Trusts Growth Plan is a multi-employer dened benet pension plan. The assets o the scheme are co-mingled or investment purposes and as a resultit is not possible to break down scheme assets by participating employer and it is not possible to analyse the ongoingunding decit by individual employer. Accordingly, due to the nature o the plan, the accounting charge or the yearunder FRS 17 represents only the employer contribution payable. There is a contingent liability in the event that the BritishRed Cross were to withdraw its membership o the Pensions Trusts Growth Plan. The Pensions Trusts Growth Plansactuaries valued the withdrawal liability at 4.6 million as at 30 September 2009. This valuation has been rolled orward,assuming actuarial assumptions and membership are consistent, to 31 December 2011 resulting in an estimated 6.5million contingent liability (2010: 4.3 million).

The British Red Cross and the Order o St John are jointly liable or the pension liabilities o the Joint Committee o theOrder o St John o Jerusalem and British Red Cross Society (Joint Committee). The Joint Committee is a separatecharity (charity no 225753) or the purposes o charity regulation. The Pensions Trusts Growth Plans actuaries valuedthe withdrawal liability at 2 million as at 30 September 2009. This valuation has been rolled orward, assuming actuarialassumptions and membership are consistent, to 31 December 2011 resulting in an estimated 3 million contingentliability (2010: 1.9 million). The Joint Committee holds assets o 1.1 million (2010: 1.1 million) which are held solely orsettling the pension liability.

15. Obligations under operating leases

Propertym

Otherm

2011Total

m

2010Total

m

The amount payable within the next 12 months on leases expiring:

Within one year 0.2 0.2 0.4 1.7

In two to ve years 1.8 1.2 3.0 2.7

Ater ve years 3.3 - 3.3 2.8

Total 5.3 1.4 6.7 7.2

16. Gross cash ows

Capital expenditure and fnancial investment2011

m2010

m

Sales o xed asset investments 11.3 26.3

Purchase o xed asset investments (3.0) (44.8)

Sale o tangible xed assets 2.7 3.2

Purchase o tangible xed assets (8.0) (4.1)

Net cash inow / (outow) 3.0 (19.4)

17. Analysis o changes in net short-term unds less borrowingAt

1 January2011

mCash ow

m

Investmentlosses

m

At31 December

2011m

Cash at bank and in hand 10.4 (6.4) - 4.0

Loan due ater one year (0.3) - - (0.3)

Current asset investments 11.2 (4.3) (0.3) 6.6

Total 21.3 (10.7) (0.3) 10.3

18. Related parties

Mr Christopher Hedges was a trustee until December 2011. Mr Christopher Hedges partner was an employee o theBritish Red Cross during this period, with remuneration o 22,749 (2010: 22,585). Mr Christopher Hedges partner wasan employee prior to Mr Christopher Hedges election as trustee.

Mr Stanley Fitches is a trustee and a pensioner member o the British Red Crosss closed dened benet pension schemeand received payments in the year o 31,987 (2010: 31,824).

19. Capital commitments

2011

m

2010

m

Capital commitments 0.7 1.8



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20. Programme commitments

The British Red Cross regularly pledges support to programmes led by the International Federation o Red Cross and RedCrescent Societies (IFRC), International Committee o the Red Cross (ICRC) or other National Societies. Full payment othe pledges is contingent on the outcome o British Red Cross reviews o the programmes. The British Red Cross hadoutstanding pledges to the ollowing programmes:

2011m

2010m

South Arica Red Cross Society KwaZulu-Natal integrated HIV & TBprogramme 2011-16 (Phase II) 4.0 0.9

Uganda Red Cross Society reducing community risk and strengthening disasterresponse programme 2.5 -

Lesotho Red Cross Society integrated HIV and ood security programme (2010-2014) 0.7 -

Red Crescent Society o Kyrgyzstan women, HIV and organisational developmentprogrammes 0.8 -

IFRC-led Sichuan (China) earthquake programme - 0.7

Other programmes 1.2 -

Total 9.2 1.6

21. Analysis o net assets between unds

Unrestrictedm

Restrictedm

2011Total

m

2010Total

m

Tangible xed assets 56.4 8.0 64.4 63.8

Fixed asset investments 22.0 27.1 49.1 58.0

Net current assets 21.7 4.0 25.7 36.5

Creditors: amounts alling due in more than one year - (0.3) (0.3) (0.3)

Provisions or liabilities and charges (2.3) (1.1) (3.4) (3.3)

Dened benet pension scheme surplus 0.7 - 0.7 1.1

Net assets 98.5 37.7 136.2 155.8

22. Big Lottery Fund and Awards or All

During the year the Big Lottery Fund and Awards or All provided grants or the ollowing projects:

Purpose o grant

Balance1 January

2011000

Income000

Expenditure000

Balance31 December

2011000

Reugee orientation - Bradord 20 3 (19) 4

Reugee orientation - Portsmouth 28 - (28) -

Reugee orientation - Manchester (reaching communities) (1) 80 (72) 7Reugee service - Leicester 14 65 (55) 24

Reugee service - Nottingham / Derby 27 106 (114) 19

Reugee unit - Birmingham - 77 (64) 13

Dawn patrol - Merseyside 16 39 (41) 14

Dawn patrol - Wigan 25 47 (47) 25

Young carers have a say in Shropshire 15 58 (63) 10

Young carers Wales - 19 (13) 6

Goal North Wales - 46 (38) 8

Mobile medical loan outreach Wales - 118 (102) 16

Total 144 658 (656) 146

Balances as at 31 December 2011 are included within our restricted unds.



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Thank you

The British Red Cross would like to thank every individual

and organisation who supported our work in 2011.

They responded with great compassion and speed at

times o emergency as well as maintaining our ongoing

work in the UK and overseas.

We would particularly like to thank all those whosupport us regularly, enabling us to plan ahead with

condence. We remember with gratitude the generosity o

donors who let gits to us in their wills. We would also like

to thank all our local undraising committees and volunteers

or their hard work.

We would like to give special thanks to:

Sir Arnold Elton CBE and the International

Medical and Scientifc Committee or their

support o our health projects across the world

The European Commission or generously

supporting our work to raise awareness o

development and migration issues in the UK

and across Europe and to support the preventiono TB and HIV among most at risk populations

in Kazakhstan

Soroptimist International Wales South Health

Education and Hygiene Trust or their support

o our community-based health programme in

Sierra Leone

The Wellington Hospital and the Wellington

Appeal Committee or their support o orphans

and vulnerable children in South Arica

Alderman and Mrs Andrew Parmley,

Co Chairmen, and the City o London

Christmas Market Committee

Allen & Overy LLP

Ashmore Group

AstraZeneca

Band Aid Charitable Trust

Barclays

The Bernard Lewis Family Charitable Trust

The Bradbury Foundation

Canon Europe and Canon UK

City o London Corporation

EMI Group

The Freemasons Grand Charity

Gareld Weston Foundation

Guernsey Overseas Aid Commission

Isle o Man Overseas Aid Committee

Inchcape

Jersey Overseas Aid Commission

The John Lewis Partnership

Land Rover

Mondrian Investment Partners LtdRoyal Bank o Scotland Group

The Scottish Government

The Skagen Charitable Trust

Sony Computer Entertainment Europe

Tesco

The Thompson Family Charitable Trust

v The National Young Volunteers Service

Zochonis Charitable Trust

Thanks also to members o the

ollowing committees:

Mr Andrew Baudains and the Jersey Fundraising

Committee

Mrs June Clague and the Isle o Man

Fundraising Committee

East Herts Ladies Fundraising Committee

The London Christmas Fair Committee

Mrs Georgiana Osborne and the Tayside Gol

Committee

Mrs Maria Shammas MBE and the International

Fundraising Committee

Tiany Circle Steering Committee

Mrs Flora Walker and the Lothian Ball Committee



25/27

Thanks also to:

The Baili and People o Jersey

Bloomberg

Dr E Boyd and Miss J A Boyd

The Cargill Trust

Mrs Henrietta Cayzer

The Constance Travis Charitable Trust

Costco Wholesale UKMr Terry Cross o Delta Print and Packaging

The Dowager Countess Eleanor Peel Trust

Fujitsu

Glasgow Airport Flightpath Fund

GlaxoSmithKline

H&M

Mrs Janie Hamill

Mr Trevor Hemmings CVO

The Herbert and Peter Blagrave Charitable Trust

The Herd Lawson and Muriel Lawson

Charitable Trust

HSBC Trust Company as Trustees o The Merrick

and Heath Fund

J Van Mars Foundation

JMP Wilcox

LieScan Scotland

Lotus Foundation

Mr John Maclean

Melbreak Charitable Trust

Amanda Nicholson, President o Buckinghamshire

John Nike OBE DL

Pzer and Pzer Foundation

Phoenix Motors

The Rt. Hon. Earl o Portsmouth DL

RedBurn

Ricoh Europe

Sale Mayoral Fund

Scouloudi Foundation

The Sir James Reckitt Charity

The Tula Trust

Mr Boyd Tunnock CBEThe Ulster Bank

Virgin Atlantic

Wales Council or Voluntary Action

The emblem o thered cross on a whitebackground is the visiblesign o protection underthe Geneva Conventions.



26/27

PhotosCover: Apex News & Pictures, Theo Moye/Apex, Sarah Oughton/BRC, HarveyHook/Hot Spot Media, Bob Collier/BRC, Ken Oloo/IFRC, Jakob Dall/Danish Red

Cross, Callum Bennetts/Maverick Photo Agency, Bob Collier/BRC, Daniel Rushall/UNP, Dave McHugh/UNP, Simon Ryder/UNP, Chris Saville/UNP, Andy Buchanan/UNP, Ziv Koren/BRC, Pacciani Agostino/IFRC, Matt Percival/BRC, Tim George/UNP, John Millard/BRC.

Page 1: Ziv Koren/BRC.Page 2: Chris Bull/UNP.Page 3: Alex Rumord, Lloyd Sturdy/BRC.Page 5: Mark Passmore/Apex News & Pictures.

Page 6: Sarah Oughton/BRC, Henry Makiwa/BRC, Marie Therese Hurson/UNP.Page 7 Harriett Armstrong, Pete Willows, Katrina Crew/BRC.Page 8: Fabio De Paola/UNP, Anthony Upton.

Page 9: Patrick Harrison, Ziv Koren/BRC, Dimitris Legakis/ UNP.Page 10: Chris Saville/UNP, Theo Moye/Apex, iStock.Page 11: Kristian Buus, Dr Shaheen Ahmed/BRC, Chris Bull/UNP.Page 13: Sam Frost/ UNP.

Page 15: Sarah Oughton/BRC.Page 17: Apex News & Pictures.Page 20: Sarah Oughton.Page 47: Tim George/UNP



27/27

The British Red Cross is required at all times to actin accordance with the undamental principles o theInternational Red Cross and Red Crescent Movement, theworlds largest independent humanitarian organisation:

Humanity, Impartiality, Neutrality,

Independence, Voluntary service,

Unity, UniversalityFor more inormation about the Movement,visit redcross.org.uk/movement

British Red Cross

44 Moorelds

London

EC2Y 9AL

Tel 0844 871 1111

Fax 020 7562 2000

redcross.org.uk

Published in April 2012

The British Red Cross Society, incorporated by

Royal Charter 1908, is a charity registered inEngland and Wales (220949) and Scotland (SC037738)
http://redcross.org.uk/http://redcross.org.uk/

trustees report and accounts 2011

Documents