2021-03-31-accounts

RN Annual Report and Financial Statements 20121 ,4•

2 RNID

CONTENTS

4 Foreword

01

8 Trustees’ Report

• 10 Objectives and activities 14 Achievements and performance 24 Structure, governance and management 30 Engagement 36 Financial Review 38 Risks and uncertainties 42 Going concern 43 Pensions 44 Reserves policy 45 Grant-making policy 46 Statement of Trustees’ responsibilities

• 48 Independent Auditor’s Report

02

54 Financial Statements

• 56 Statement of financial activities 57 Balance Sheet 59 Cashflow statement 60 Notes to the Financial Statements

98 Acknowledgements

Annual Report & Financial Statements 2020/21

3

ONE IN FIVE adults in the UK are deaf or have hearing loss and one in eight have tinnitus.

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Foreword

A message from our Chairman and Chief Executive

There is no doubt that the last 18 months have been extraordinary. No one could have predicted the impact of the worst pandemic in a century and the worldwide economic and social disruption that has followed.

The economic downturn has meant that our sector has been deeply affected and, like many other charities, COVID-19 meant we had to work even harder and more innovatively to manage risk, deliver our planned objectives and ensure our long-term sustainability.

But in the face of turmoil and challenge, there have been encouraging signs. Throughout the pandemic, we have continued to deliver high-quality services to people who are deaf, have hearing loss or tinnitus. Our Information Line rose magnificently to meet an increased demand for support and we maintained our service delivery with innovative solutions. We will be able to build on the invaluable lessons learned about delivering services remotely.

Our new digital service is just one of our ambitious plans for the delivery of our strategy that will see us better prepared and structured to deliver wide-scale change – and to have greater impact on the people we exist for. Extensive user-led development work has seen the first iteration launch in May this year, with an online hearing check. To date, more than 24,000 people have taken the check and there have been 200,000 visits to the website for advice and support.

Over the coming year, and as part of a digitalfirst strategy, we plan to merge our Hear to Help and our digital services to form a new flagship service. Our aim is to expand its reach to all parts of the UK, whether this is provided by us or by another well-placed partner organisation.

The past year has been remarkable for other reasons, too: investment in new technology, the move to remote working, a return to our much-loved heritage brand,and a refreshed purpose. We announced our four big strategic programmes and set out what we want to achieve in each. Change of this scale has, inevitably, meant a reorganisation of the way we work. By altering our operating model and implementing a simpler, flatter structure, we will empower our people to adopt new ways of working. Saying goodbye to staff has been difficult, of course, but the result is a leaner, more agile organisation which will be better able to respond to the needs of our community and stay true to our purpose.

Annual Report & Financial Statements 2020/21 Foreword 5

The economic downturn has meant that our sector has been deeply affected and like many other charities, COVID-19 has resulted in us having to work even harder and more innovatively to manage risk, deliver our planned objectives and ensure our long-term sustainability.

Although the pandemic delayed our plans to divest our Care and Support services, we have now completed the transfer to Achieve together, one of the UK’s leading providers of specialist support to more than 2,200 young people and adults in 350 services across England and Wales. We are enormously proud of our regulated services and sad to say goodbye to almost 600 amazing members of staff. However, we firmly believe Achieve together is well-placed to invest in our former services, supporting them to grow and develop in the future.

The charity has also made enormous strides in improving its financial resilience. There are some short-term issues arising from COVID-19, and delays to some income that are beyond our control, but we finish the year in a strong position with plans to put in place a long-term, sustainable operating model during 2021-22.

In the face of adversity and change, we must acknowledge our benefactors who unfailingly support us to fund our work in research, support and inclusion. We must also recognise the commitment, sound advice and strong leadership of our trustees. We are fortunate to welcome Sally Hinks, Nick Waring and Ita Murphy to our board. Lastly, our grateful thanks to our dedicated staff and volunteers, every one of whom care deeply

about the people we support. Change is always difficult and uncertain, but we are in no doubt that the direction we’re going is the right one.

As we enter our 110th birthday year, we have big ambitions. We will accelerate our strategy, widen our reach and deliver on our purpose. No matter what 2022 holds, we remain

determined to make life fully inclusive for our community and be a force of change for the future.

John Morgan Chair

Mark Atkinson Chief Executive

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Administrative details

RNID is the trading name of the charitable company limited by guarantee, the Royal National Institute for Deaf People (RNID), registered in England and Wales No. 454169. It is registered as a Charity (No. 207720 England and Wales and SC038926 Scotland). RNID is governed by its Articles of Association, adopted on 14 May 1948, and last amended on 11 December 2019.

The registered office address is Bakewell Road, Orton Southgate, Peterborough PE2 6XU.

On 2 November 2020 the charitable company, previously trading as ‘Action on Hearing Loss’ changed its trading name to RNID.

Trustees

The following provides details of all Trustees who were in place during the financial year until the point at which these accounts were signed in October 2021, and their membership of the committees as at the date of signing:

John Morgan[1]

Chair

Claire Bailey[1,3] Treasurer

Dr. Brian Caul[1]

Lindsay Foster[1,2] Vice Chair

Ingrid Gallen

(stood down on 8 December 2020) Gideon Hoffman[3]

Richard Jones

(stood down on 8 December 2020)

Thomas McCarthy[2]

Jacqueline Press

Nick Waring

(joined on 8 December 2020) [2]

Ita Murphy

(joined on 8 December 2020) [1]

Sally Hinks

(joined on 8 December 2020) [3]

• 1 Nominations Committee 2 Audit Committee 3 Resources Committee

Annual Report & Financial Statements 2020/21 Foreword 7

Key management personnel

The trustees delegate the implementation of policies and the day-to-day management of the charity to the Chief Executive who is assisted by the Executive Group. Those on the Executive Group are the charity’s key management personnel. Key management personnel in place during the 2020-21 financial year are detailed below:

Mark Atkinson

Chief Executive

Harriet Oppenheimer

Deputy Chief Executive and Director of Strategy and Impact

James Abbott

Director of Performance and Corporate Services

Noelia Fernandez

Executive Director of People (stood down on 21 August 2021)

Ralph Holme

Company Secretary

Steven Maiden (stood down on 31 May 2021)

James Abbott (appointed 21 July 2021)

Principal Professional Advisers

Solicitors

Bates Wells Braithwaite

10 Queens Street Place, London EC4R 1BE

Wilsons

Alexandra House, St John’s Street, Salisbury SP1 2SB

Independent auditors

Crowe U.K. LLP

55 Ludgate Hill, London EC4M 7JW

Bankers

Lloyds Banking Group

10 Gresham St, London EC2V 7JD

Director of Research and Insight

Steven Maiden

Executive Director of Governance, Risk and Assurance (stood down on 31 May 2021)

Tim Willett

Director of Funding and Innovation

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01

Trustees’ Report

• 10 Objectives and activities 14 Achievements and performance

• 24 Structure, governance and management 30 Engagement 36 Financial Review 38 Risks and uncertainties 42 Going concern 43 Pensions 44 Reserves policy 45 Grant-making policy 46 Statement of Trustees’ responsibilities

48 Independent Auditor’s report

Annual Report & Financial Statements 2020/21

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As I’ve got older, I’ve become more and more proud to be deaf. I can do so many things in life. I just can’t use the phone but who cares? Email is pretty easy. Ajay

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Objectives and activities

The Trustees’ Report incorporates the Strategic Report and can be found on page 8. These two reports together meet the requirements for a Directors’ Report as required by the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013. In approving the Trustees’ Report, the Board of Trustees have also approved the Strategic Report.

Our vision

The future of RNID

RNID exists to help make life fully inclusive for the people who want and need our support. There is a frustrating lack of patience, empathy and understanding within society towards deafness and hearing loss – such as barriers to work, travel, communication and socialising – which all takes its toll on selfesteem, mental wellbeing and social inclusion. This needs to stop.

Our ambition is to be a collective force for change by campaigning together alongside our community to break down barriers; connecting people to practical advice and funding research to pioneer new treatments for hearing loss or tinnitus. There is still a lot to do, and the challenge is huge, but we won’t stop until we see a world where everyone is fully included in society.

RNID is on a journey – from an organisation significantly focused on local provision of care and other support services towards a digitally-enabled organisation that will have an impact on a much wider scale. We aim to be relevant to everyone who is deaf, has hearing loss or tinnitus, as well as their friends, family, employers and the general public through a mixture of campaigning, influencing, service provision and research.

RNID is undergoing significant change and restructuring to become the organisation that can deliver this. At our core will be four strategic, multi-year programmes; health, inclusion, employment and research. These programmes will set our aspirations for the change and impact we want to achieve and will shape and drive the activities to get us there.

The four programmes focus on what our users have told us is most important to them. As we go forward, each programme will be established based on a strong and evidenced rationale, and with clear ways of measuring our impact. This approach will significantly increase the benefit we deliver and, we believe, will also help our funding goals.

Annual Report & Financial Statements 2020/21 Trustees’ Report 11

Public benefit

Trustees use the Charity Commission guidance on public benefit and consider the charity to have an impact both on those we exist to support and on the wider public.

This report highlights the activities which demonstrate the impact and value the charity has had UK-wide on the lives of those with deafness, hearing loss and tinnitus – and how we adapted throughout the pandemic in order to continue to provide these.

Over the course of the year, the trustees have supported the Executive Group in the implementation of the charity’s strategy, and our transformation into a digital-first organisation. This will help us achieve greater reach and make a significant impact through various research programmes and campaigning (see pages 17 - 20). We are confident that, together, this will further strengthen our public benefit.

It has been a difficult year for our Care and Support provision, with the added pressures of the pandemic affecting the lives of those we support. However, with perseverance and the commitment of our staff, we continued

to achieve strong regulatory compliance, responded to the needs of people we support, and received positive feedback from them and their families.

Throughout the year, we continued to deliver information and support services based on the needs of our users. In fact, the disruption of the pandemic has allowed us to review our service delivery approach and prompted us to do better. We developed a new digital offer that will make it easier for us to connect with more people. It will allow those who need to be heard the most to take part in our campaigns, make a difference and embark on a journey with RNID.

Our support of world-class biomedical research and our work to influence and campaign around perceptions of deafness, hearing loss and tinnitus also have clear public benefit. Our investment in research will continue to support and accelerate the development of medical treatments to prevent hearing loss, restore hearing to those who have lost it and silence tinnitus. We may not see immediate benefits but trustees believe that, over time, there will be research breakthroughs and societal changes to which our work will have directly contributed.

12 RNID OUR VALUES

Annual Report & Financial Statements 2020/21 Trustees’ Report 13

People

We treat people as people – with warmth, dignity and respect. We see people as whole people, not just as an issue or problem to be solved. We show kindness, care and understanding and approach people how we would like to be approached.

Passion

We are passionate about our work and we want to make a difference in people’s lives. If things can be improved, we won’t just settle for how they are. We’re prepared to challenge the status quo. We strive for high standards, to do our very best. We take positive risks and innovate, trying new things.

Partnership

We work alongside others to achieve the best results. We listen carefully and try hard to understand. We share insights, ideas, learning and resources. We respect and value differences and we enable others to participate. We act with integrity and build trust.

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Achievements and performance

Everything we do aims to bring us one step closer to delivering our vision of making life fully inclusive for everyone we support. We set out in this report our significant achievements against these objectives, as well as our work to strengthen the charity and deliver our strategy.

A stronger charity going forward

Clearly, RNID’s year in 2020-21 has been characterised by responding to the pandemic. Although the need to move overnight to remote working was challenging, it has also significantly advanced us towards becoming a digital charity. We’ve found innovative new ways of supporting our service users online, and become a much more integrated, connected workforce internally. In fact, our experiences during this year have given us the confidence to move permanently to remote working. This will mean that, in the coming years, we can close our offices and reinvest the money from leases into our people and our cause.

We have also recognised that while highquality service provision will remain an important part of our mission in the future, providing standardised services across the UK, fully integrated with our digital platform, will be more sustainable and have greater impact. This is a notable shift from today’s wide-ranging portfolio of commissioned services and contractual models in different parts of the UK. We have made significant progress in identifying which services to build on in future years, and which to step back from at the end of their current term.

As well as helping us increase our impact and reach, these organisational changes also ensure that, in the longer term, the charity is no longer reliant on higher risk income but is financially sustainable and able to grow.

Information and support and local community services

Across the UK, RNID delivers information and support services based on changing need and available funding. 2020-21 has been a year of disruption and adaptation within our community services with all face-to-face support being temporarily closed and then later adapted for safe delivery during the COVID-19 pandemic. Despite this, we’ve achieved some remarkable results and we continue to have a positive impact on the lives of thousands of people. Here are just a few examples:

• l Our Information Line supports a wide range of enquiries across the deaf, hearing loss and tinnitus spectrums. It provides an invaluable service from immediate assistance from the team to signposting other services that can better meet their needs. During the year, we supported 22,838 callers via phone, email, letter, or

Annual Report & Financial Statements 2020/21 Trustees’ Report 15

web chat. We increased team resources during the pandemic to ensure that we could meet the greater demand for information and advice delivered remotely.

In addition to this centralised service, we provided information to 38,631 members of the public and 24,057 professionals through a variety of interventions.

l Our Employment Support Services provide person-centred support for jobseekers and employees who are deaf or have hearing loss. We also work with employers and training providers to ensure their recruitment processes are accessible. The pandemic has been particularly disruptive to these services as many of the people we support are British Sign Language (BSL) users and rely on faceto-face communication. Our staff and volunteers adapted meeting spaces, provided technology and made increased use of communication support and online platforms to connect with clients and support them safely. We enrolled 50 new people (including those on furlough or made redundant) onto our projects this year and continued supporting existing clients. Despite the difficult labour market conditions this year, we secured employment for 11 people, and supported 41 people in getting qualifications or work relevant certificates.

• l Our hearing aid support services help people to make the most of their hearing aids and manage their hearing loss effectively by providing basic maintenance and information. When our face-to-face services were suspended during the pandemic, our volunteers maintained our support by contacting our previous service users, offering peer-to-peer support on hearing aid issues, providing a postal service for batteries and consumables, and up-to-date information on changes to audiology services. Despite the obstacles, we supported 20,403 people with their hearing aids.

Over the past year: 20,403 people have been supported with their hearing aids

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It is the difference between hearing and not hearing. Service user, South Powys

Total contrast to before, my hearing on my left ear is outstanding now. Service user, Northern Ireland

During this period, our staff worked collaboratively to redevelop the service in novel ways, such as drive-through and dropoff hearing aid maintenance clinics as well as doorstep pickup services. As in previous years, the majority of those we helped rated our service as ‘excellent’ or ‘good’ and told us that we had had a positive impact on their lives.

• l Our social groups, Hear to Meet, adapted to give people the opportunity to meet up virtually, share experiences and information and make new friends. Given the nature of these services, they have had a real, personal impact: 4,148 people came to our virtual groups to connect with others.

• l Our Aged Veterans Service was able to work with the Royal British Legion in England, Wales, and Northern Ireland to make use of previous funding and increase our resources throughout the pandemic. As well as supporting 644 veterans and 129 veterans professionals, we delivered three online webinars through Facebook and LinkedIn, reaching 4,705 people.

• l Our Welfare Rights service in Scotland supported 59 people to access benefits that they were entitled to, such as Job Seekers Allowance (JSA), Disability Living Allowance (DLA), Housing Benefit and Universal Credit.

• l Our Live Well with Hearing Loss service (funded by the Welsh Government) adapted its home-visit service to befriend 220 people via telephone and video chats. Despite the emphasis on remote or distanced support, some home visits were made to vulnerable service users with urgent needs.

• l Our Tinnitus Support Service in Northern Ireland adapted to continue providing advice and emotional support remotely to people struggling with the condition when all face-to face individual and group sessions and awareness talks had to be cancelled.

Our Tinnitus Awareness sessions and Tinnitus Management Course moved online this year. We delivered 12 Tinnitus Management Courses (three interactive, 90-minute sessions spread over three weeks) and supported 146 people.

Annual Report & Financial Statements 2020/21 Trustees’ Report 17

• l Our befriending service worked hard to reduce the risk of loneliness and isolation for 27 sign language users in Northern Ireland. The Deaf befriending project provided befriendees with a tablet, which not only increased their confidence in using technology but meant they were able to communicate more regularly with family and friends through video calls, reducing isolation even further.

Policy and campaigns

In a year of turmoil and challenge, we innovated to continue to deliver our high-quality services remotely and learned important lessons that we will build on in the future.

We influenced the national UK response to the pandemic where it mattered most for the people we support, including

• l We worked with government, along with other disability charities, to highlight the need for an exemption to rules requiring face covering in certain public places. As a result, the government created and raised awareness of exemption cards and made sure that guidance to businesses highlighted the communication barriers created by face coverings. We also secured changes to the government guidance on public face coverings so that they can be temporarily lowered to communicate with someone with hearing loss – with social distance maintained.

• l In response to our call on the government to assess the safety and viability of transparent face masks, a type 2R model has been approved for use in the UK in health and social care settings. Following this approval, we worked with the government and secured an initial 250,000 masks which were distributed to frontline NHS and social care workers in September 2020. We also worked with the Department of Health and Social Care and NHS England to create guidance for frontline clinicians, explaining the impact of face coverings for people with hearing loss and to promote effective deaf awareness and communication technique.

• l Throughout the pandemic, we’ve lobbied the government to make sure all of its public health messaging is accessible – and have joined forces with a number of other disability charities to create a checklist. We’ve seen some improvement but errors are still being made (such as shielding letters sent out in October 2020 to thousands of people that were not in accessible formats). We’re also concerned that not all government press conferences are broadcast with BSL interpretation. The House of Commons Women and Equalities Select Committee has since explicitly called for our checklist to be adapted and implemented across government. We continue to press for accessibility to become the norm, rather than an afterthought, in government communications.

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• l We raised accessibility issues with Test and Trace, outlining the specific challenges for people who are deaf or have hearing loss and met with Baroness Dido Harding to help drive improvements. As a result of this intervention, Hearing Loops and Interpreter Now were added to local teams lists for implementation, greater accessibility features were built into the system, and people could register their individual communication needs at the start of the process.

In response to supporter feedback about accessibility issues at both Test and Trace and vaccination centres, we created a new poster specifically for those sites which is being shared by Public Health England. We also met with the minister responsible for the vaccine roll-out about the needs of BSL users in understanding and accessing the vaccine system and centres.

• l For several years, we’ve been fighting proposals to restrict provision of NHS hearing aids. We’ve worked particularly closely with the six Clinical Commissioning Groups (CCGs) in Staffordshire. As a result of our efforts, North Staffordshire CCG has confirmed that it will end the rationing of hearing aids for moderate hearing loss. The combined CCGs are due to run a public consultation on aligning their policies in a number of areas – and we remain positive that this process will end the current restrictions on mild hearing loss provision in North Staffs. We believe that by fighting back against these proposals, we’ve

headed off a dangerous precedent which could have created widespread risk to the provision of hearing aids across the NHS.

• l We worked closely with the Royal College of General Practitioners (RCGP) to develop a toolkit of education and training materials for GPs about the needs of our community. The project was led by Dr Devina Maru, RCGP Clinical Champion for deafness and hearing loss. The aim of the toolkit is to help doctors meet the principles and practice of both the guidelines produced by the National Institute for Health and Care Excellence (NICE), and the NHS’s Accessible Information Standard for use in healthcare.

• l Retail spaces have, for too long, been inaccessible for our community– whether due to background music, a lack of Hearing Loops, or no deaf awareness training for staff. The pandemic has only added to these barriers, with face coverings, physical partitions and social distancing creating an even more difficult experience.

• l In July 2020 we launched our Access for All in Retail campaign by asking supporters to sign our open letter, setting out the importance of accessibility in retail stores. More than 1,800 people signed and we sent the letter to the head offices of some of the biggest retailers in the UK. We’ve received some positive responses to date and we’ll continue to press for changes in policy.

Annual Report & Financial Statements 2020/21 Trustees’ Report 19

Research

We continued to support world-class research to bring about treatments to prevent hearing loss, restore hearing to those that have lost it and silence tinnitus. We spent a total of £1.6m (2019-20: £1.6m).

Accelerating the discovery and development of new treatments

During the year:

We invested a total of £886K through our Discovery and Translational Research Grant schemes to generate new knowledge and advance the development of promising new treatments.

Our research funding led to important scientific discoveries that bring treatments closer; 38 research papers were published in scientific journals, including:

• l the identification of genes required to maintain hearing in the fruit fly, providing vital clues for the development of treatments for age-related hearing loss

• l new ways of coding information in cochlear implants to improve listening when there is a lot of background noise

• l evidence that a new experimental type of hybrid cochlear implant that stimulates the auditory nerve using both electric currents and light could be more effective than today’s technology

• l the identification of a gene linked to increased risk of developing tinnitus, providing important insight into the causes of tinnitus.

£1.6M spent on research in total

We spent:

£886k on discovery and transational research

£396k on developing future research leaders

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• We added five new Discovery Projects to our research portfolio, focussed on advancing treatments to restore hearing, prevent hearing loss, silence tinnitus, improve benefit gained from cochlear implants, and better understand the links between dementia and hearing loss. We also awarded funding to investigate the links between COVID-19 and hearing loss.

the development of treatments. From 34 organisations that came forward, 17 connections were made, four collaborative proposals are being developed and one new project is underway that could lead to a drug treatment to prevent hearing loss caused by degeneration of the auditory nerve.

Developing future research leaders

We invested £396,000 on developing future research leaders in the UK through our PhD and Fellowship schemes – including four new PhD studentships in the areas of age-related hearing loss, tinnitus, inherited hearing loss and drug delivery to the cochlea.

• Two new Translational Research projects were added to our portfolio that will advance the development of a treatment for chronic middle ear infections and a treatment to prevent hearing loss associated with a specific cancer drug.

Impact of COVID-19 on our research

• In partnership with the Medicines Discovery Catapult, we continued to deliver the Hearing Medicines Discovery Syndicate to connect researchers to the expertise and infrastructure they need to advance

The pandemic has impacted on the progress of many projects we’re funding, due to the closure of labs during the first lockdown and reduced occupancy since re-opening. This has particularly impacted clinical studies that involve face-to-face testing. Some universities responded by making use of the Coronavirus Job Retention Scheme (furlough) where they could, and we have granted no-cost extensions to affected projects.

Annual Report & Financial Statements 2020/21 Trustees’ Report 21

Technology and Support Services

In turn, this helps employers retain staff, improve morale and increase productivity, whilst increasing deaf awareness.

In 2020-21 we worked with:

Samsung to test accessibility of their smartphone and Galaxy bud pros. We have also been working in partnership with both Samsung and the Cambridge Hearing Group to look at how these devices compare to hearing aids technically, as well as people’s experience of using them.

• l The Bluetooth Special Interest Group to ensure new products and services that use the new Bluetooth Low Energy hearing loss solution meet user needs and remain accessible alongside mainstream applications.

• l BT on the release of the Relay UK app which saw significant improvements from the previous NGT app following our user feedback. We also helped ensure it meets the increased demand of emergency service calls during the pandemic.

Providing Support Services

This year we’ve continued to deliver a range of communication service and accessibility solutions (by video or face-to-face) to clients.

• l We carried out 136 workplace assessments for employees to help them overcome barriers in the workplace, reducing anxiety and stress. The adjustments we recommended range from the use of assistive technology to changes to the office environment to the provision of deaf awareness training.

Technology solutions:

136

workplace assessments for employees

20

deaf awareness training sessions delivered

2

BSL training sessions delivered

6,000+ communication services bookings co-ordinated

248

induction loop systems installed

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• l We delivered 20 deaf awareness training sessions and two BSL training sessions to businesses. The training covers causes of hearing loss, the barriers facing deaf people, and how to use the most appropriate methods of communication with colleagues, peers, and customers. Our BSL training starts with the basics of the language and looks at the phrases and terminology used in that particular channel or sector. Our services are delivered by professional trainers with personal experience of hearing loss.

• l We co-ordinated more than 6,000 bookings for BSL interpreters, Speech to Text Reporters, lip speakers, electronic note takers and other communication services. The client base covers the NHS, local authorities, GP surgeries, banks, solicitors and many more, providing deaf people and BSL users with the access they need.

• l We installed 248 induction loop systems nationally, ensuring accessibility at various businesses, public venues, museums and others.

As the coronavirus restrictions continue to ease across the UK, we have begun to see an increase in demand for Communication Support, Training and Workplace assessments.

Care and support

High quality care and support

As we prepared for the transfer of our services to Achieve together in 2020-21, we continued to maintain a high level of quality and compliance throughout Care and Support services. At the end of the year, we showed 96.7% compliance within regulated services across England, Wales and Northern Ireland with three different regulators: the Care Quality Commission (CQC), Care Inspectorate Wales (CIW) and Regulation and Quality Improvement Authority (RQIA).

Six inspections were carried out across the three regulators during 2020-21. Of 27 CQCregulated services, 26 are rated ‘good’, and one rated ‘requires improvement’ (most recent inspection in August 2019). CIWregulated services are all compliant and received complimentary reports at their first inspection under new legislation.

Annual Report & Financial Statements 2020/21 Trustees’ Report 23

We have continued our work with our Involving People Group (IPG) throughout the pandemic and remained committed to involving people in their care and support.

At the end of the year, we showed 96.7% compliance within regulated services across England, Wales and Northern Ireland

COVID-19

Care and Support teams have worked relentlessly throughout the pandemic, often going above and beyond to protect and keep safe the people we support. There have been a few outbreaks within Care and Support services where staff, along with supporting teams, worked closely with Local Health Protection Teams and Infection Protection Control Officers to ensure the safety of both staff and people we support.

National lockdowns have been undeniably difficult for people we support and the families and friends who support them, with less time spent together. Staff teams have worked creatively to keep the people we support safe, reassured and in contact with their families. This has included introducing more activities within services, working with people to help them better understand the virus and proactively creating risk assessments to ensure safe visiting when possible and video technology when not.

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Structure, governance and management

Structure

Governance

RNID is the trading name of the charitable company limited by guarantee, the Royal National Institute for Deaf People (RNID), registered in England and Wales No. 454169. It is registered as a Charity (No. 207720 England and Wales and SC038926 Scotland). RNID is governed by its Articles of Association, adopted on 14 May 1948, and last amended on 11 December 2019. The registered office address is Bakewell Road, Orton Southgate, Peterborough, PE2 6XU. RNID’s objective is to help make life fully inclusive for the people who want and need our support. Our ambition is to be a collective force for change by campaigning together alongside our community to break down barriers; connecting people to practical advice and funding research to pioneer new treatments for hearing loss or tinnitus.

RNID has a wholly owned subsidiary, RNID Activities Ltd. In the past, the company has carried out non-charitable trading activities to raise funds for RNID. The subsidiary discontinued operations in 2018-19 and the company will remain dormant for future operational activities (2020: £0).

The Board of Trustees have adopted the Charity Governance Code and keep areas of recommended practice under continual review. Due to the pandemic, a full review of the updated Code was not completed in the financial year. However, an assessment will take place in 2021-22.

The Board is committed to equality, diversity and inclusion and particularly welcomes the strengthening of this principle in the new Code. At the Board level, the Nominations Committee are actively seeking to diversify the Board and Committees in future rounds of recruitment. Trustees recognise that greater representation from under-represented groups is required, and that more diversity will strengthen our decision-making processes.

The Board is also overseeing equality, diversity and inclusion in the workforce. During the year, a People Strategy was approved by the People Committee and Board which included clear aspirations on diversity. This will be supported by a dedicated Equality, Diversity and Inclusion Strategy which will be an integral part of our new operating structure described elsewhere within this report.

Annual Report & Financial Statements 2020/21 Trustees’ Report 25

The Board of Trustees is responsible for the overall governance of RNID. The Board has a maximum of 10 trustees, all of whom are appointed by the Board in line with the outcome of a membership election process. All trustees are appointed for a term not exceeding three years, at the end of which they are eligible for reappointment for a second term. Trustees are only eligible for a further term in exceptional circumstances and only for a maximum of three years.

The Board Rules, Delegated Authority Signing Policy and Committee Terms of Reference set out the delegation of decision making to the Executive and to individual committees. The Rules include a statement of reserved powers for the Board. Trustees are required to meet at least three times a year. In the year up to 31 March 2021, they met nine times.

Section 172 Statement

The Board of Trustees has regard to section 172(1) a-f of the Companies (Miscellaneous Reporting) Regulations 2018 in its decisionmaking. RNID’s organisational strategy (agreed in 2019), the development of new services (page 39) and the development of a new operating model (page 39) have been designed to achieve a sustainable and impactful organisation in the long-term. This has required difficult decisions including those to divest of regulated services and to retire a number of non-regulated services that are not aligned to the new strategy. However, the Board of Trustees is confident that these decisions will ensure that RNID impacts on the lives of millions of people who are deaf or have hearing loss and tinnitus for years to come.

As set out on page 39, RNID agreed a new People Strategy during the financial year which will be rolled out as part of the new operating model in 2021-22. This strategy was based on extensive engagement with employees about the culture and ways of working that will best enable us to deliver our ambitious strategy. This has been supported by ongoing engagement with employees through regular communications and engagement including through our Deaf Awareness Group and Diversity Group.

Throughout the year, we’ve also worked hard to continue our financial recovery plans (page 39). As reported in previous years, this has included ensuring that billing processes are robust and timely. This has been key to further strengthening RNID’s business relationships with suppliers and customers and we’ve seen demonstrable and ongoing improvement in these areas.

RNID exists to have an impact on society by furthering the interests of people who are deaf or have hearing loss and tinnitus. As such, the Board of Trustees are conscious of the need to sustain and increase our reputation both in regard to RNID’s status in the sector, and in maintaining high standards of business conduct. As organisational changes begin to embed, trustees are confident that our reputation will continue to grow and strengthen.

26 RNID

Trustee recruitment, induction and training

Trustees are appointed through an open and transparent process which involves advertising vacancies through prominent recruitment websites and media across the UK. All vacancies are informed by a skills gap analysis and succession planning exercise led by the Nominations Committee.

The process is designed to ensure that the Board has the right skills and diversity in order to deliver the strategy. All trustee candidates are shortlisted and interviewed by a panel of the Nominations Committee before being recommended to the Board for appointment. Recommended candidates are then put to the membership for election prior to appointment.

During the year, we trialled our new induction process for trustees and committee members with three new trustee appointments. The induction provided an overview of the duties and role of trustees/directors and the wider context of charity governance. New trustees also met with all members of the Executive Group to gain a comprehensive understanding of the organisation, its strategy and finances. Due to the impact of COVID-19, service visits couldn’t go ahead as intended but it is our intention that this will take place when circumstances allow.to ensure all members of the Board have an ‘on the ground’ understanding of our services.

During the year, all members of the Board and Executive Group were provided with detailed training on safeguarding responsibilities. This was an important session which is

expected to form part of all future induction programmes, particularly as RNID begins to deliver its new safeguarding strategy later in the year.

Committee structure

The Board delegates certain powers in connection with the charity’s management and administration. Committees provide meeting minutes and report back regularly to the Board. Details of each committee are included below.

Audit Committee and Care and Support Services Quality Committee

The Audit Committee and Care and Support Services Quality Committee have met jointly during this financial year. This decision was made during the pandemic when it was felt sensible and pragmatic to report to both committees on risk mitigation in key areas of safeguarding and quality assurance and to ensure the right level of scrutiny.

The Audit Committee is made up of two trustee members and two independent members. Ingrid Gallen stepped down from the committee during 2020, coinciding with the end of her second term as a trustee. Nick Waring was appointed at the same time and brought with him strong financial knowledge and expertise. All members of the committee are independent of management.

The Care and Support Services Quality Committee was made up of two members. Its purpose was to monitor quality, compliance and other risk relating specifically to our

Annual Report & Financial Statements 2020/21 Trustees’ Report 27

regulated care services. At the start of the year, this comprised of two trustee members, but was revised to include one trustee member and one independent Chair. This allowed Richard Jones, with extensive experience of quality and social care, to remain on the committee. The Committee was disbanded in July 2021 following the transfer of Care and Support services to Achieve together.

The joint-Committee met four times during the year to provide oversight of the charity’s service quality framework, risk management, system of internal control, outsourced internal audit function and external audit process for the Board. The committees provided assurance to the Board of Trustees and support to management on all areas within their remits, including quality and safety matters in regulated services.

Finance Committee

The Finance Committee is made up of four trustees including the Chair and Treasurer. The committee is responsible for supporting and advising the Board of Trustees on all financial matters including budgeting, monitoring performance and forecasting. The committee also has the important role of overseeing the delivery of the Financial Recovery Plan and the Transformation Programme on behalf of the Board. The committee met on a bi-monthly basis and receives financial management information on, at least, a monthly basis.

Nominations Committee

The Nominations Committee is comprised of three trustees including the Chair of the People Committee and is responsible for undertaking skills audits and succession planning for the Board and its committees. It is responsible for overseeing Board accountability and appraisals as well as identifying and proposing new members of the Board and committees, induction, support and development.

People Committee

The People Committee was a time-limited body made up of two trustees and an independent committee member appointed during the year. The committee oversaw the development of the new People Strategy and implementation plan, agreed by the Board in early 2021. It is also responsible for reviewing all strategic matters relating to staff, volunteers and culture in the organisation.

The decision was taken in 2021 that the committee has served its purpose now that the People Strategy has been agreed. It was disbanded and merged with the Finance Committee in April 2021 in the new form of a Resources Committee.

Following the year end, the remit of the committee has expanded and will become the Resources Committee as it assumes the responsibilities of the People Committee.

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Management

This financial year we recruited RNID’s first Deputy Chief Executive and consolidated the structure of our Executive Group. Our employees and volunteers have faced many professional and personal challenges throughout the COVID-19 pandemic, and we have empowered our leaders and managers to support their teams and continue delivering key services to our customers.

We have increased the visibility of our Executive Group through the introduction of regular, all-staff virtual meetings. These have given us an opportunity to cascade critical messages and important information in real time to our geographically dispersed teams. We have continued to embrace the new technology and methods of communication we implemented last year, including Yammer and Microsoft Teams. These tools continue to increase contact and collaboration across the UK in a way that was never experienced before.

We have supported our office-based staff and volunteers to pivot their ways of working to digital delivery models and to ensure that

they are able to work from home and continue to support our community in a way that was easily accessible and safe.

We recognise that the work we do, and all our achievements, rely heavily on the support of our volunteers, many of whom have been critical in enabling us to support people remotely this year. Others made the decision to pause their activities with us at the height of the pandemic but continue to be an integral part of our structure. We look forward to welcoming them back as soon as possible.

Within our Care and Support services, we worked tirelessly to ensure our senior managers had the information, skills and resources they needed to keep our staff and customers as safe as possible during the pandemic. We were humbled to see the commitment of all our staff throughout this period and their dedication to the wellbeing of all the people we support.

Throughout the year, we have continued to engage with all our staff and volunteers by increasing our staff surveys and regular checks-ins. It was reassuring that 74% of our staff felt the charity kept them well-informed about changes and issues affecting them and

Annual Report & Financial Statements 2020/21 Trustees’ Report 29

74% of our staff felt the charity kept them well-informed about changes and issues affecting them 86% of staff felt their manager supported them well professionally during a challenging time at work

that 86% felt their manager supported them well professionally during a challenging time at work. We have also supported managers to have regular contact with furloughed staff to ensure that they remain engaged with the charity and their colleagues. We’re pleased that at the time of the accounts being signedall of our staff are back from furlough.

We also recognise that this has been an incredibly difficult time for our people professionally, so we were glad to continue supporting our staff development through participation in a charity sector mentoring scheme.

The health and wellbeing of our people has been a focal point for the charity this year. We’ve had external speakers join us to speak to staff about health, wellbeing and resilience and our wellbeing champions and employee assistance programme have continued to support people on an individual basis. As part of our journey to becoming a more diverse employer, we’ve supported staff to set up an Ethnic Minority Networking Group.

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Engagement

Fundraising: Achievements and practice

Like the rest of the UK charity sector, our fundraising teams have worked hard to adapt to the impact of COVID-19 and the national lockdowns. Unfortunately, the pandemic has seen income decline and fundraising investment pause while RNID worked to adapt to the situation that has dominated the 202021 financial year.

Against this backdrop, it’s important we recognise the incredible generosity of our loyal supporters throughout the pandemic which has enabled RNID to continue to perform its work – sometimes in new ways. To each and every one of our amazing supporters, our grateful thanks.

Fundraising highlights

Our income from donations and legacies was £9.7m in 2020-21, a decrease from the previous year (2019-20: £15.2m). This was largely due to the exceptional performance of our legacy programme in 2019-20, which broke all previous records and saw income we anticipated receiving in 2018-19 move into 2019-20. The impact of lockdown also depressed legacy income across the UK charity sector, with issues in the housing and stock markets and the probate process slowing down the process of estate administration.

Legacy income for 2020-21 was £7.1m (2019-20: 11.4m). RNID is incredibly grateful to everyone who has remembered us in their will. It is the generosity of people who choose to give in this way that continues to have a huge impact on the work we do to support deaf people and those living with hearing loss and tinnitus.

We were also able to generate £2.9m through public fundraising activity (2019-20: £2.5m). Despite COVID-19 delaying planned investment in the area, the Individual Giving

Annual Report & Financial Statements 2020/21 Trustees’ Report 31

RNID were so helpful when I got in touch about my Will. They invited me to see what my gift could achieve and I left encouraged that it will help others in the future. RNID supporter

team responded with great agility to the pandemic. They worked to produce materials to support people with hearing loss during the first lockdown, in partnership with the Royal Osteoporosis Society, with whom we shared information to help our audiences deal with common issues of isolation and physical health during the lockdown. We also relaunched the charity’s supporter magazine, in line with our rebrand, which was welcomed with a large increase in support via donations to the charity. The team generated a surplus of £1.2m (2018-19: £1.7m). Additional activity will be required in future years to ensure continued performance in this area.

We are incredibly grateful to the people who took part in virtual events, supporting RNID in new ways despite the impact of the pandemic, as well as the generosity of our corporate supporters such as Simply Health.

The ability of people affected by hearing loss to access accurate information has never been more important than during this crisis. We’ve seen an increase in the number of people contacting our helpline and searching our website for advice and support, and a significant increase in the number of callers

who feel anxious, isolated and in need of emotional support. Generous grants from charitable trusts and foundations have supported the vital work of our Information Helpline and helped us to expand our digital reach. We were delighted to receive funding from the Coronavirus Community Support Fund, distributed by The National Lottery Community Fund, towards providing information and support to people during the crisis. We have also continued to receive vital grants from trusts and foundations towards our essential medical research programme.

Brand, communications and user experience

We successfully returned to our much-loved heritage brand during the pandemic. Having carried out research with 6,000 people, we found that ‘RNID’ was still more popular and significantly more trusted by all key audiences, despite the name not being used since 2011. It also enabled us to explore a new purpose, for all our communities: together, we will make life fully inclusive for deaf people and those with hearing loss and tinnitus.

32 RNID

In 2020, our focus was on the daily issues deaf people were facing during the pandemic, such as barriers to communication caused by face coverings, and social isolation. This highlighted the need for a stronger brand, which is why we pressed ahead with the change in November 2020, to better serve our community when they needed us the most.

We subscribe to a quarterly nfpSynergy report which tracks our brand. The report shows that, since our rebrand, there has been a significant increase in brand awareness, brand trust, and in channel audience growth. As a result, we are confident that the continued growth of the brand will make a significant contribution towards the delivery of our strategy (as more people know who we are and what we do).

We also went live with our new charity website in April 2020. We significantly reduced the number of pages, making it easier for users to find what they’re looking for, and removed outdated or irrelevant content. We’ve applied content design principles and readability guidelines across the site to ensure our content meets user needs and is accessible. By changing our platforms, we were also able to significantly reduce website running costs,

We launched three weeks early so we could better help people during the pandemic, with a new coronavirus response section, which was used by more than 80,000 people.

More than 600,000 people have visited the website in the last year and around 20,000 have given us feedback, with more than 80% of it positive.

Following the delivery of the website and a review of our services, the team worked with users and colleagues across the charity to design, test and build a new digital service, which went live in May 2021.

Fundraising control and regulation

We continue to be members of the Chartered Institute of Fundraising and of the Fundraising Regulator and follow their standards and guidelines (including the Code of Fundraising Practice), as we strive to achieve best practice in all we do. We are also regulated, and regularly audited, by the Gambling Commission.

We regularly review our processes and procedures to ensure we, and everyone we work with, provide our supporters with the best possible experience and consistently uphold the highest ethical standards.

Annual Report & Financial Statements 2020/21 Trustees’ Report

33

Fundraising

Rebrand success

New website launch

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Use of agencies and third parties

Like many other charities, we work with carefully selected professional fundraising agencies for telephone fundraising.

We do not use agencies for street fundraising. We work with agencies to help us process responses to appeals and donations received, to print and mail on our behalf, maintain our supporter database, and help us monitor the effectiveness of our fundraising activities.

We work with any newly-appointed agencies to ensure that contracts are set up to comply with current regulations. Existing contracts are also regularly reviewed to ensure they continue to meet our high standards. We have clear controls in place to monitor their, and our own, performance. This includes mystery shopping, random call monitoring, and close monitoring of feedback to identify and resolve causes of any issues that people may experience and to make sure that everyone who works with us to raise funds complies with our high standards.

Managing communications with our supporters

Many of our supporters want to know how their donations are supporting our work and how they are making a difference. In line with our legal obligations, we offer people the choice of whether they would like us to keep them up-to-date with our work, telling them how they have helped, and how they can continue to help, in the future.

We offer new supporters the opportunity to choose how we communicate with them and for what purpose – and we honour those wishes. We also offer everyone we contact simple ways to opt out of any further communication.

We continue to ensure that our processes are developed and implemented in line with the Fundraising Regulator’s code of practice and, where required, we update our processes so that they continue to be compliant.

We do not sell or exchange lists of data with any other charities or companies for their marketing or fundraising purposes.

Annual Report & Financial Statements 2020/21 Trustees’ Report 35

People in vulnerable circumstances

We take our responsibility towards supporter care and to vulnerable people very seriously. Members of our in-house Supporter Care team are all trained to respond sensitively and appropriately to any individual showing signs of distress, confusion or vulnerability.

We also have contracts and controls in place, as described previously, to ensure all agencies that may come into contact with vulnerable people treat them in line with our policies and values.

Our commitment

We will continue to monitor all our fundraising activities closely to ensure they are performed to the highest standards and reflect the wishes and preferences of all our generous supporters. We welcome any feedback or comments people may have. To get in touch by post or email, see the last page of this report for contact details.

Complaints

We take every complaint we receive seriously and make sure that we investigate fully and respond promptly, where required. For the 12 months to 31 March 2021, we received one fundraising-related complaint, relating to an accessibility issue a supporter experienced when contacting the team. This has now been resolved. We received no official complaints via the Fundraising Regulator. In order to ensure that we provide the best level of service to the people who support our work, we regularly monitor the level and nature of feedback that we receive.

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Financial review

After a strong performance in the previous year, 2020-21 was challenging. Income was significantly impacted by COVID-19, as demand for some of our commercial and funded services dropped, and lockdown measures severely impacted legacy administration and, therefore, income. Our legacy pipeline remains strong, however, and we are confident that income has been delayed, rather than significantly reduced.

Improved liquidity and a reduced cost base as a result of the financial recovery plan measures previously implemented have helped RNID to weather the COVID-19 storm in 2020-21. Our liquidity was further bolstered by a £1.5m business resilience loan and a temporary pause on deficit repair payments made to the defined benefit pension scheme. RNID also made use of the government Coronavirus Job Retention Scheme, with 191 furloughed full or part-time during 2020-21. RNID received £874k from the scheme during the year and topped up pay for furloughed staff to 100%.

Total costs were reduced, largely due to reduced activity as a result of the pandemic. Net expenditure was £1.7m (2019-20: net income of £1.2m). A surplus had been anticipated in our pre-COVID-19 budget, and we remain confident of our ability to avoid deficits in future years. Under the latest actuarial assumptions, a provision for the pension fund was recognised and this resulted in a £3.7m loss (2019-20: £5.2m gain). This increased the charity’s loss to £5.2m (2019-20: £6.3m surplus).

Full details of our financial performance for the year ended 31 March 2021 are shown in the financial statements and notes on . page 54 to 99

Annual Report & Financial Statements 2020/21 Trustees’ Report 37

Income

£34.5m

Expenditure £35.5m

Where did our money come from?

How was our money spent?

£17.6m Care & Support

£10.6m Fundraising and other trading

£1.3m Technology & Support Services

£3.9m Local Engagement

£0.2m Research

£0.9m Government Grant

57%

Care & Support

18% Local Engagement

6%

Technology & Support Services

13% Fundraising costs

5% Research

1%

Policy & Campaigning

How we spend our income

Fundraising income

£10.6m

13% Generating future income

87%

Charitable activities

We ceased selling of assistive technology products in April 2020. Income was significantly impacted in the year, as COVID-19 reduced demand for some of our commercial and funded services.

38 RNID

Risk and uncertainties

The Board of Trustees has overall

responsibility for risk management and the setting of the charity’s risk appetite. However, the Board of Trustees delegates authority to the Audit Committee in this area and the committee receives regular reports from the Executive Group on the management of key risks. Nonetheless, risks are reported to and discussed by the Board of Trustees on a regular basis.

Throughout the year, the Audit Committee oversaw the review, improvement and implementation of the new risk framework. It has improved the Board of Trustee’ oversight of risk with more clearly articulated strategic risks, impacts and mitigations in place. To ensure the Executive Group and the trustees have a clear picture of RNID’s risk profile and exposure at all times, relevant staff groups met regularly to discuss any emerging new risks but also any lower level, local risks that could hinder strategic delivery. Any findings are always fed into the Executive Group, who where required, make immediate and necessary judgements to mitigate any risk. Understandably, COVID-19 has increased the residual risk levels in all three of the core principal areas, which was a direct result of a

delay to a number of key mitigations. However, we have clear actions to bring the risk levels down and have set ourselves realistic and clear timeframes. The trustees are confident that the vast improvement of the Risk Framework has made RNID’s systems of governance, risk management and control much more secure. Nevertheless, this will be under continuous scrutiny and will evolve as the charity makes a number of strategic changes.

The charity’s risk register is broken into three principal risk areas as a way of framing our risk management activities.

Principal risk area 1: Establishing a strong, stable and financially sustainable organisation

COVID-19 has posed a short-term liquidity concern which has been a prominent risk since the pandemic began. In order to stabilise the charity and mitigate any immediate risk, the trustees and Executive Group collectively agreed to make use of the Government Coronavirus Job Retention Scheme, obtain a business resilience loan from Charity Bank (to support working capital) and implement cost-reduction measures such as controls on non-essential expenditure and recruitment.

Annual Report & Financial Statements 2020/21 Trustees’ Report 39

RNID currently relies heavily on legacy income. Although the pipeline of future legacy income remains strong, the ongoing lockdown measures throughout the year delayed our legacy income, and consequently meant that the recovery of our financial performance was delayed for longer than initially expected.

The Board of Trustees and the Executive Group recognised that in order to ensure that RNID is able to deliver on its strategy and reach everyone in the UK who is deaf, has hearing loss or tinnitus, they must deliver a change programme at pace that would make RNID more sustainable in the longer term, become more efficient, and fit for purpose. Since the year end, significant progress has been made in designing a new operating model and organisational structure for RNID, setting out the implications for future services and staff, and launching a consultation across all staff within the charity. This new operating model will see us diversify our income through our fundraising strategy, ensuring greater resilience for the future. This change programme has given us the opportunity to hear from our people and allowed them to contribute towards strengthening the impact and sustainability of the charity.

smaller, do less but deliver greater impact. We expect the level of risk to reduce accordingly. Five strategy implementation projects commenced during early 2021. Since the year end, they have been significantly further progressed with a new operating model implemented in July 2021. The new, simpler structure will focus on driving our strategic programmes so we can innovate quickly to meet the needs of our communities.

COVID-19 has had an impact on the types of services that the charity can deliver and the ways in which they can be delivered. Work has been done to address this through shifting some face-to-face activities to remote/ digital models but there has, nonetheless, been reduced delivery. Work has progressed in relation to updating the charity brand and the design of a new digital information and advice offer that is being directly informed by the needs of those who are deaf, have hearing loss or tinnitus. There is more to do to deliver these projects, but the foundations are now in place to begin realising our ambitions in the coming years. Digital services can unlock huge potential to make life fully inclusive for the people we support. The new website has been launched along with a self-help tool, hearing check, and a digital communications card.

Principal risk area 2:

Developing a charitable offer that reaches the 1 in 5 people in the UK who are deaf or have hearing loss and the 1 in 8 with tinnitus

There has been major progress on the implementation of the new strategy this year, which will enable a charitable offer that has greater reach and impact. We will become

The move to maximise digital tools to reach wider and more diverse audiences requires infrastructural work in the form of new systems, hardware, servers, customer relationship management system (CRM), and so on, in order to fully realise this ambition. New senior appointments have been made to

40 RNID

drive forward a new IT strategy. There is still work to be done but progress is being made to deliver digitally with current tools wherever possible.

The transfer of Care and Support services progressed significantly in the 2020-21 financial year, completing after the year end in June 2021. This is an important part of our strategy to enable the charity to focus on activities which will have the highest impact and reach for our communities.

Principle risk area 3:

Operating a compliant, well-led and well-governed charity

Trustees oversee a number of risks relating to overall compliance, governance and leadership and have taken action to strengthen these areas throughout the year.

The current restructure and operating model sees the trustee training and development being redesigned. The governance team has been strengthened to ensure best practice in governance, risk and safeguarding.

The Care and Support Services Quality Committee has overseen risks relating to our regulated and unregulated care

services and received regular reports on the management of quality matters, safeguarding and regulatory performance. COVID-19 has presented some additional risks in these areas, but the level of compliance and quality has remained extremely high as detailed elsewhere within this report.

Work is in progress on the modernisation of internal systems, policies and processes which will build on progress already made in strengthening our internal control framework. A new policy framework is being developed to ensure that policies are fit for purpose and accurately reflect the changing organisation. This is supported by the implementation of a new technology strategy and staff intranet which consolidates our systems and allows for safe recording and reporting processes to be implemented. As such, there remains work to be done to strengthen this risk area further but we are confident that considerable progress has been made throughout the course of the year.

Annual Report & Financial Statements 2020/21 Trustees’ Report 41

We have carefully reviewed the impact that remote working has had on our staff and charitable objectives and considered the costs of getting back into our office spaces across the UK. Our new strategy aims to become a digital first charity. Therefore, we are working on closing our existing offices when leases come to an end and look for more flexible collaboration spaces with remote working. The money we save on property, we will invest in our people and our purpose.

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Going concern

Most of the components of our 2018 financial recovery plan have now been delivered – selling our London head office and other properties no longer required for our services, relocating our Finance team from London to Peterborough, and improving commercial performance across our trading, commissioned, and regulated services.

As detailed elsewhere in this report, our new sustainable operating model was implemented after the year end in July 2021. This hasreduced the charity’s reliance on lower probability income, and ensured that we can deliver our strategy while living within our means. We are confident in our ongoing financial sustainability, and the transfer of our Care and Support services to another provider will further enable us to grow our free reserves and invest further in the charity’s strategy.

It is not possible to accurately predict the full impact of potential further lockdowns and pandemic-related economic disruption on our financial performance; however, based on comprehensive forecasting and scenario modelling, combined with mitigations that have been put in place, trustees are confident that the charity will survive this crisis.

As a result of these factors, the trustees consider that it is appropriate for the financial statements to be prepared on a going concern basis.

The COVID-19 pandemic continues to impact our liquidity and financial performance. To mitigate this, in 2020 we made use of the Charity Bank’s Resilience and Recovery Loan Fund with a £1.5m loan. We did not need to use these funds and after the year end have paid the loan back in full.

Annual Report & Financial Statements 2020/21 Trustees’ Report 43

Pensions

We have operated two trust-based pension schemes since July 2018 when the defined contribution section of the RNID pension scheme was transferred to a master trust run by AON. The RNID scheme now only consists of the defined-benefit assets and liabilities. We closed the defined-benefit scheme to new entrants on 1 October 2001 and to new accruals on 31 March 2010. The annually calculated notional surplus or deficit on the funding of the scheme is deducted from unrestricted funds in the Balance Sheet.

The last detailed actuarial triennial valuation was carried out as at 31 March 2018. Following this, a revised funding plan was agreed with members and the pension scheme trustees. The outcome of this agreement is that pension deficit contributions remain the same but the recovery period has been extended from 2030 to 2034. These contributions were paused during the COVID-19 pandemic to support our liquidity management but resumed in April 2021. In addition, the scheme will share some of the proceeds from planned asset disposals as they arise.

As part of the Trustees’ Report and Accounts preparation process, an actuarial valuation was carried out on 31 March 2021 using methodology recommended by the Financial Reporting Standard 102. This valuation showed market value of assets to be £75.9m (2020: £73.2m) and the current value of liabilities to be £79.1m (2020: £71.9m). The net deficit was £3.1m, compared to a net surplus of nil as at 31 March 2020. The funding plan is a schedule of deficit-reducing payments designed to eliminate the deficit by 2034, and the contribution by the charity in 2020-21 was £1m. Further details are included in Note 18.

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Reserves policy

Trustees aim to maintain free reserves at a level that enables the charity to manage financial risk and short-term income volatility. Free reserves available for use include unrestricted funds less the net book value of tangible fixed assets, as these are used to carry out the charity’s activities. Free reserves also exclude any deficit reported on the pension scheme.

The trustees reviewed the free reserves policy in the year and updated the target. The revised policy states that free reserves should represent at least four months but not exceed eight months of forecast non-commissioned cash outflows. Based on 2020-21 expenditure, the target free reserves range is £4.1m – £8.7m. This target is expected to reduce in future years with the implementation of the sustainable operating model.

----- Start of picture text -----
2020/21 2019/20
£m £m
Total unrestricted funds 4.2 9.0
Add back pension reserve 3.2 0
Less unrestricted fixed assets (5.9) (5.9)
Total 1.5 3.1
----- End of picture text -----

The ongoing work on the sustainable operating model will ensure the restoration of the free reserves within the target range by 2024.

As a result of the COVID-19 pandemic, free reserves have decreased in the year to £1.5m at 31 March 2021 (2020: £3.1m) and remain below the target range

Annual Report & Financial Statements 2020/21 Trustees’ Report 45

Grant-making policy

We award research grants to fund world-class research projects that will accelerate the development of medical treatments to prevent hearing loss, restore hearing and silence tinnitus. We also make grants to increase the numbers of trained research staff helping to build future research capacity. Universities, non-profit research institutes and technologyled small businesses from any country are eligible for funding, except where geographical and organisational-type restrictions are stated for specific funding schemes.

Everyone involved in the grant-application and review process is asked to abide by our Research Programme’s Code of Conduct and Conflict of Interest policy. We occasionally award a small number of grants for social and technical research to help provide the evidence basis for campaigning and policy development. We also award grants to develop our library collection, currently housed and managed by University College London.

We widely publicise our calls for grant proposals. We advertise our grant schemes on our website and through emails sent out to the research community. The proposals we receive are subjected to an appropriate level of expert peer review, typically involving independent, external reviewers and a voluntary independent grant-review panel. Each review panel is made up of experts who serve for a three-to-five-year term and the panel members are listed on our website. We make the final decision about each award based on this expert advice, the relevance of the research to our research strategy, and our available budget. We usually make payments every six months and review progress regularly.

46 RNID

Statement of trustees’ responsibilities

The trustees (who are also directors of RNID for the purposes of company law) are responsible for preparing the Trustees’ Report and Accounts (including the ‘Strategic Report’) and the Financial Statements in accordance with applicable law and regulation.

Company law requires the trustees to prepare Financial Statements for each financial year. Under that law, the trustees have prepared the Financial Statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law, the trustees must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

In preparing these Financial Statements, the trustees are required to:

• 1 Select suitable accounting policies and then apply them consistently;

• 2 Observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (2015);

• 3 Make judgements and estimates that are reasonable and prudent;

• 4 State whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the Financial Statements; and

• 5 Prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable

Annual Report & Financial Statements 2020/21 Trustees’ Report 47

them to ensure that the Financial Statements comply with the Companies Act 2006, Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware:

Trustees’ Report (incorporating the ‘Strategic Report’) has been approved by the Board of Trustees and signed on its behalf by:

John Morgan

Chairman 07 December 2021

• 1 There is no relevant audit information of which the company’s auditors are unaware.

• 2 They have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

The Trustees are responsible for the maintenance and integrity of the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

By order of the Board of Trustees, the

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Independent Auditor’s Report

to the Members and Trustees of The Royal National Institute for Deaf People

Opinion

We have audited the financial statements of The Royal National Institute for Deaf People (RNID) for the year ended 31 March 2021 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 2021 and of it’s incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

Annual Report & Financial Statements 2020/21 Trustees’ Report 49

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our

50 RNID

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

• the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

• adequate and proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; 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.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 50, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Annual Report & Financial Statements 2020/21 Trustees’ Report 51

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of

non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS 102) and the Charities and Trustee Investment (Scotland) Act 2005. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Care Quality Commission

52 RNID

(CQC) regulations, employment legislations and taxation legislations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included review of grant expenditure monitoring in place, enquiries of management, and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, recording the impact of the CQC regulatory reviews and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that

we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts

Annual Report & Financial Statements 2020/21 Trustees’ Report 53

(Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Naziar Hashemi Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor London Date: 10th December 2021

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02 Financial Statements

56 Statement of financial activities 57 Balance Sheet 59 Cashflow statement 60 Notes to the Financial Statements

98 Acknowledgements

Annual Report & Financial Statements 2020/21 Annual Report & Financial Statements 2020/21 Trustees’ Report

55

Before I was diagnosed with hearing loss I had stereotyped it as an elderly thing. One year on, I am proud of my hearing aid (nicknamed Cora) and I’m passionate about helping others understand that Ami hearing loss can affect anyone.

56 RNID

The Royal National Institute for Deaf People

Statement of Financial Activities for the year ended 31 March 2021

(incorporating an income and expenditure account)

----- Start of picture text -----
Unrestricted Restricted Total funds Total funds
funds funds 2021 2020
Note (£’000) (£’000) (£’000) (£’000)
Income from:
Donations and legacies 5 9,206 1,033 10,239 15,231
Government Grant 5 874 0 874 0
Income from charitable activities:
Care and support 5 13,057 4,567 17,624 17,925
Local engagement 5 2,235 1,760 3,995 3,965
Technology and enterprise 5 1,273 0 1,273 4,969
Research 5 155 0 155 193
Policy and campaigning 5 8 0 8 10
Other trading activities 5 339 0 339 395
Investments 3 0 3 14
Total income 27,150 7,360 34,510 42,702
Expenditure on raising funds 6 4,405 103 4,508 5,087
Expenditure on charitable activities:
Care and support 6 15,321 5,572 20,893 20,136
Local engagement 6 4,555 1,676 6,231 7,563
Technology and support services 6 2,263 4 2,267 6,579
Research 6 1,275 370 1,645 1,629
Policy and campaigning 6 463 1 464 515
Total 23,877 7,625 31,500 36,422
Total expenditure 28,282 7,726 36,008 41,509
Net (expenditure)/income (1,132) (366) (1,498) 1,193
Actuarial gains / (losses) on defined benefit
pension schemes 18 (3,743) 0 (3,743) 5,162
Net movement in funds (4,875) (366) (5,241) 6,355
Reconciliation of funds:
Funds brought forward at 1 April 2020 9,060 3,527 12,587 6,232
Funds carried forward at 31 March 2021 4,185 3,161 7,346 12,587
----- End of picture text -----

Results for the year ended 31 March 2020 are shown in corresponding Notes to the Financial Statements.

Annual Report & Financial Statements 2020/21 Financial Statements 57

The Royal National Institute for Deaf People

Balance sheet as at 31 March 2021

----- Start of picture text -----
2021 2020
Note (£’000) (£’000)
Fixed assets
Intangible fixed assets 11 192 262
Tangible fixed assets 12 7,141 7,211
7,333 7,473
Current assets
Stocks 0 2
Debtors 13 3,035 5,052
Cash at bank and in hand 7,118 6,508
10,153 11,562
Current liabilities
Creditors falling due within one year 14a 4,734 5,219
Net Current assets 5,419 6,343
Liabilities
Amounts falling due after more than one year 14b 1,949 939
Provision for liabilities 17 290 290
Total assets less liabilities
(excluding pension liability) 10,513 12,587
Defined benefit pension scheme asset/(liability) 18 (3,167) 0
Total net assets 16 7,346 12,587
The funds of the charity
Endowment funds 19 68 68
Restricted funds 19 3,093 3,459
3,161 3,527
----- End of picture text -----

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The Royal National Institute for Deaf People

Balance sheet as at 31 March 2021

Continued

----- Start of picture text -----
2021 2020
Note (£’000) (£’000)
Unrestricted funds
Unrestricted funds excluding pension liability 9,299 9,997
Revaluation reserve 2 2
Pension reserve (3,167) 0
Loan (1,949) (939)
Total unrestricted funds 4,185 9,060
Total charity funds 7,346 12,587
----- End of picture text -----

The notes on pages 60–97 form part of these Financial Statements.

The Financial Statements were approved by the Board of Trustees and

authorised for issue on 07 December 2021 and signed on their behalf by:

John Morgan Chairman

Annual Report & Financial Statements 2020/21 Financial Statements 59

The Royal National Institute for Deaf People

Statement of cash flows for the year ending 31 March 2021

----- Start of picture text -----
2021 2020
Note (£’000) (£’000)
Cash flows from operating activities:
Net cash (used in)/generated from operating activities 22 1,011 (2,481)
Cash flows from investing activities:
Interest received 3 14
Proceeds from sale of tangible fixed assets 6 8,854
Purchase of intangible fixed assets (40) (163)
Purchase of tangible fixed assets (281) (182)
Net cash provided by/(used in) investing activities (312) 8,523
Cash flows from financing activities:
Interest paid (89) (178)
Net cash used in financing activities (89) (178)
Change in cash and cash equivalents in the reporting period 22 6,508 644
Cash and cash equivalents at the beginning
of the reporting period 6,508 644
Cash and cash equivalents at the end of the reporting period 7,118 6,508
Cash and cash equivalents consists of:
Cash at bank and in hand 7,118 6,508
Cash and cash equivalents 22 7,118 6,508
----- End of picture text -----

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Notes to the Financial Statements

1. General Information

RNID is the charity making life fully inclusive for deaf people and those with hearing loss or tinnitus.

The charity is a private company limited by guarantee without share capital and is incorporated and based in the UK, number 454169.

RNID is a registered charity in England and Wales (207720) and Scotland (SCO38926).

The address of its registered office is Brightfield Business Hub, Bakewell Road, Orton Southgate, Peterborough, PE2 6XU

In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

2. Statement of compliance

The Financial Statements are prepared under the historical cost convention, modified to include the revaluation of investments to fair value, and in accordance with applicable accounting standards in the United Kingdom. These are the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities 2015’ and Financial Reporting Standard (FRS) 102, together with the reporting requirements of the Companies Act 2006, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, and the Charities Accounts (Scotland) Regulations 2006 (as amended).

The Charity has adapted the Companies Act formats to reflect the charities SORP FRS 102 and the special nature of the Charity’s activities.

3. Accounting policies

Going concern

Most of the components of our 2018 financial recovery plan have now been delivered – selling our London head office and other properties no longer required for our services, relocating our Finance team from London to Peterborough, and improving commercial performance across our trading, commissioned, and regulated services.

As detailed elsewhere in this report, our new sustainable operating model was implemented after the year end in July 2021. This has removed the charity’s reliance on lower probability income, ensuring that we can deliver our strategy whilst living within our means. We are confident in our ongoing financial sustainability, and the transfer of our Care and Support services to another provider (also after the year end)has further enabled us to grow our free reserves and invest further in the charity’s strategy.

Annual Report & Financial Statements 2020/21 Financial Statements 61

Notes to the Financial Statements

It is not possible to accurately predict the full impact of ongoing lockdowns and pandemic related economic disruption on our financial performance. However, based on comprehensive forecasting and scenario modelling, combined with mitigations that have been put in place, trustees are confident that the charity will survive this crisis.

As a result of these factors, the trustees consider that it is appropriate for the financial statements to be prepared on a going concern basis.

Income

Income is accrued and included in the SoFA when the Charity is entitled to the income, receipt can be quantified and income is probable. It is deferred when they relate to future accounting periods.

Donations

General donations, gifts, donations from fundraising events, trusts and corporate income and direct marketing income are accounted for on a received basis. Gift Aid receivable is included when claimable.

Legacy

Pecuniary legacies are recognised as receivable once probate has been granted or notification has been received.

For residuary legacies, the charity recognises legacy income on the earlier of the final legacy accounts being issued, or cash being received, to ensure income can be reliably measured.

When the criteria for income recognition have not been met, then the legacy is treated as a contingent asset (see Note 18).

Contracts

Where contracts contain the right to receive periodic payments, these receipts are recognised when they fall due and on completion of the Charity’s contractual obligations for the period. Income is accrued if the Charity is entitled to the income.

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Notes to the Financial Statements

Grant income

Income from grants is credited to the SoFA. It is recognised when the Charity has entitlement to the funds, any performance conditions have been met, it is probable the income will be received and the amount can be measured reliably. If the grant relates to a specific future time period it will be deferred.

RNID received government grants that were performance-related grants. Performance-related grants are recognised in income under “charitable objectives”.

Income from performance-related government grants is recognised when the Charity has entitlement to the funds, any performance conditions have been met, it is probable the income will be received and the amount can be measured reliably and is not deferred.

The nature of these grants is disclosed in Note 22. There were no unfulfilled conditions or special criteria.

Other forms of government assistance from which the Charity has directly benefited are Access to Work payments, local authority payments for local service agreements and Care and Support contracts.

RNID has benefited from the CJRS and grants for infection control measures in our care services.

Trading activity

Income from trading activities is credited to the SoFA when received or receivable, whichever is earlier, unless it relates to a specific future period, in which case it is deferred. Income from lotteries is recognised when the draw is made. Income received in advance for future lotteries is deferred until the draw takes place. All other income is accounted for on an accruals basis.

Donated services and facilities

On receipt, donated professional services and donated facilities are recognised on their commercial value when this can be quantified.

Donated services and gifts in kind over £20,000 are included as both income and expenditure in the relevant category.

A valuation of volunteer time given to the Charity is not recorded in the Financial Statements.

Annual Report & Financial Statements 2020/21 Financial Statements 63

Notes to the Financial Statements

Expenditure and irrecoverable VAT

Expenditure is accounted for on an accruals basis in the period in which they are incurred. Expenditure on raising funds includes the costs incurred in raising donation income, legacy income, grant income and income from trading activities, including apportioned support costs.

Expenditure on charitable activities comprises the costs incurred on charitable activities including the apportioned support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Termination benefits are recognised at the leaving date of the of the member of staff and measured at the best estimate of the expenditure required to settle the obligation at the reporting date.

Allocation of expenditure

Expenditure is allocated to the particular activity to which the cost relates. When expenditure relates to more than one area of activity, the costs are allocated to each of the activities on the based on estimated staff time.

Governance costs

Governance costs are the costs associated with constitutional and statutory requirements and with the strategic management of the Charity’s activities.

Grant Commitments

Grants are generally made to organisations to facilitate research into hearing loss and tinnitus. Grants payable are payments made to third parties in the furtherance of the charitable

objectives of the Charity. The grants are accounted for where either the Trustees have agreed to pay the grant without condition or up to the point at which the conditions have been fulfilled. The key condition is a regular review by the Charity, and this can be on a six-month or 12-month basis, as specified in the grant award letter.

Taxation

The activities of the Charity and its charitable subsidiary are exempt from corporation taxation under section 505 of the Income and Corporation Taxes Act 1988 to the extent that they are applied to the organisation’s charitable primary objectives, if these profits are applied solely for charitable purposes. The trading subsidiary does not generally pay UK corporation tax because its policy is to pay taxable profits as Gift Aid to the Charity.

64 RNID

Notes to the Financial Statements

Intangible assets

Intangible assets are stated at cost, less accumulated amortisation. The Charity only capitalises items costing more than £5,000, unless the asset cost is below this value but is part of a larger project where the value would be more than £5,000 in total, then it is capitalised.

Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful life as follows:

Intangible	asset Duration
Software	5 years

(Costs associated with maintaining computer software are recognised as an expense as incurred.)

Intangible assets are subject to review for impairment when there is an indication of a reduction in their carrying value.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation. The charity only capitalises items costing more than £5,000, unless the asset cost is below this value but part of a larger project where the value would be more than £5,000 in total, then it is capitalised.

Depreciation is provided so as to write-off the cost of fixed assets on a straight-line basis over their expected useful lives, as follows:

----- Start of picture text -----
Tangible asset Duration
----- End of picture text -----

Freehold land and buildings	Not depreciated (land) or 50 years (buildings)
Improvements to freehold and long-leasehold properties	25 years
Leasehold properties	50 years or lease period if shorter
Fixtures, ftings, furniture and other equipment	5 years
Computer equipment	5years

Annual Report & Financial Statements 2020/21 Financial Statements 65

Notes to the Financial Statements

Assets under construction are not depreciated and comprise expenditure on the purchase or creation of intangible and tangible assets not brought into use at the balance sheet date. Transfers are made from assets under construction to the relevant category of tangible and intangible asset when the asset is brought into use.

Tangible assets are subject to review for impairment when there is an indication of a reduction in their carrying value.

Leased assets

Payments under operating leases are charged to the SoFA on a straight-line basis over the period of the lease.

Investments

Investments in subsidiaries are recorded at cost in the Charity’s balance sheet.

Stocks

Stock is valued at the lower of cost and fair value less costs, to sell using an average cost calculation.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Restricted funds are funds that the donor has specified to be solely used for particular areas of the Charity’s work.

Permanent endowment funds are capital funds where trustees has no power to convert the capital into income.

Pension costs

The Charity operates three funded pension schemes in the UK (the “Scheme”). One Scheme has both defined benefit and defined contribution sections and the others just have defined contribution sections.

The current service cost of the Charity’s defined pension scheme is charged to the SoFA.

The Charity operates a defined benefit plan for certain employees. A defined benefit plan defines the benefit that the employees will receive on retirement, usually dependent on certain factors including age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

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Notes to the Financial Statements

A full actuarial valuation of the Scheme was carried out at 31 March 2020 by a qualified independent actuary, based on membership data as at 31 March 2015, but amended to take account of material movements during the year. Actuarial gains and losses are recognised on the face of the SoFA as net actuarial gain or loss on pensions.

The defined benefit obligation is calculated using the independent actuary’s valuation model, which forms a representation of the future benefit payments of the Scheme, which are then discounted to the valuation date. Annually, the Charity engages independent actuaries to calculate the obligation.

The present value is determined by discounting the estimated future payments using market yields on the Merill Lynch UK AA corporate bond yield curve at a duration of 18 years as at 31 March 2019 and a discount rate of 2.4% per annum.

The liability recognised in the balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the reporting date less the fair value of the plan assets at the reporting date.

Accrual of benefits under the defined benefit section of the Scheme ceased with effect from 31 March 2010.

The Charity operates two defined contribution plans for its employees. A defined contribution plan is a pension plan under which the employees and the Charity pay fixed contributions into a separate entity. Once the contributions have been paid, the Charity has no further payment obligations. The contributions are recognised as an expense on the SoFA when they are due. Amounts not paid are shown as outstanding in the balance sheet.

The assets of the plan are held separately from the Charity in independently administered funds.

Short-term employee benefits

Short-term benefits, including holiday pay and other non-monetary benefits, are recognised as an expense in the period in which the service is received.

Contingencies

Contingent assets are disclosed in the Financial Statements when an inflow of economic benefit is probable. The only contingent asset of the Charity relates to legacies (Note 18).

Annual Report & Financial Statements 2020/21 Financial Statements 67

Notes to the Financial Statements

Financial Instruments

The Charity has taken advantage of the exemptions in FRS 102 from the requirement to present certain disclosures about the charity’s financial instruments. The Charity has financial assets and financial liabilities of a kind that qualify as basic. These are initially recognised at transaction value and subsequently measured at their settlement value. Financial assets that are measured at fair value include investments. Financial assets that are debt instruments measured at amortised cost include trade debtors and other debtors. Financial liabilities measured at amortised cost include trade creditors, other creditors, current and long-term loans.

Related undertakings

R.N.I.D. Activities Limited (913439), Sound Advantage Ltd (02437205), Action on Hearing Loss Ltd (07566245), The Hearing Research Trust Ltd (07146209), Sussex Deaf Association(09740664) and RNID Services Ltd (11769135) are wholly owned, dormant subsidiaries, and have therefore not been consolidated.

Related party transactions

The Charity discloses transactions between the Charity and related parties. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the Trustees, separate disclosure is necessary to understand the effect of the transactions on the Charity Financial Statements (Note 26).

Critical accounting judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below.

1 Legacy Income

The Charity has elected to continue recognising residual legacy income on receipt of final estate accounts, or when cash has been received, when entitlement conditions have been met, due to the nature of underlying assets and liabilities and the time that may elapse between probate and closure, and other contingencies that can contest the estate.

68 RNID

Notes to the Financial Statements

2 Defined benefit pension scheme

The Charity has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including: life expectancy, asset valuations and the discount rate on corporate bonds. Our pension actuary estimates these factors in determining the net pension asset in the balance sheet. The assumptions reflect historical experience and current trends.

3 Short-term compensated absences

FRS 102 requires the cost of short-term compensated absences to be recognised when the employees render the service that increases their entitlement. At the end of the financial year, actual holiday to be carried into the following year was determined. This was reviewed together with salary costs per employee, to determine the value of any holiday pay accrual.

4 Provision for doubtful debts

Trade debtors and other receivables are recognised at their transaction value, less any provision for doubtful debts. The provision for doubtful debts is based on a review of aged items, by type of debt, which takes account of credit control activities to collect the amounts outstanding, including any indications that debt will not be fully recovered.

5 Contract Income Recognition

Contract Income is recognised when contractual obligations have been fulfilled and in the period in which the income falls due.

6 Dilapidations Provision

Provision is made based on spend estimated to fulfill contract requirements.

Annual Report & Financial Statements 2020/21 Financial Statements 69

Notes to the Financial Statements

4. Statement of financial activities for the year ended 31 March 2020

(incorporating an income and expenditure account)

----- Start of picture text -----
Unrestricted funds 2020 Restricted funds 2020 Total funds 2020
(£’000) (£’000) (£’000)
Income from:
Donations and legacies 13,712 1,519 15,231
Income from charitable activities:
Care and support 17,924 1 17,925
Local engagement 2,261 1,704 3,965
Technology and support services 4,969 0 4,969
Research 193 0 193
Policy and campaigning 10 0 10
Other trading activities 395 0 395
Investments 14 0 14
Total income 39,478 3,224 42,702
Expenditure on raising funds 5,086 1 5,087
Expenditure on charitable activities:
Care and support 20,090 46 20,136
Local engagement 5,518 2,045 7,563
Technology and enterprise 6,577 2 6,579
Research 1,188 441 1,629
Policy and campaigning 515 0 515
Total cost of charitable activities 33,888 2,534 36,422
Total expenditure 38,974 2,535 41,509
Net (expenditure)/income 504 688 1,193
Net actuarial gain/(loss) on pensions 5,162 0 5,162
Net movement in funds 5,666 688 6,355
Reconciliation of funds:
Funds brought forward 3,393 2,839 6,232
Funds carried forward 9,060 3,527 12,587
----- End of picture text -----

70 RNID

Notes to the Financial Statements

5. Income

----- Start of picture text -----
Unrestricted Restricted Total funds Unrestricted Restricted Total funds
funds 2021 funds 2021 2021 funds 2020 funds 2020 2020
(£’000) (£’000) (£’000) (£’000) (£’000) (£’000)
Donations and legacies
Gifts 2,598 537 3,135 2,573 1,204 3,777
Legacies 6,608 496 7,104 11,139 295 11,434
Sussex Deaf Association 0 0 0 0 20 20
9,206 1,033 10,239 13,712 1,519 15,231
----- End of picture text -----

Sussex Deaf Association merged with on 1 July 2018. The charity became dormant as at that date and the income shown above has been treated as a restricted fund. The income, expenditure and the remaining balance can be seen in Note 24.

----- Start of picture text -----
Unrestricted Restricted Total funds Unrestricted Restricted Total funds
funds 2021 funds 2021 2021 funds 2020 funds 2020 2020
(£’000) (£’000) (£’000) (£’000) (£’000) (£’000)
Grant
Coronavirus Job Retention Scheme 874 0 874 0 0 0
874 0 874 0 0 0
Unrestricted Restricted Total funds Unrestricted Restricted Total funds
funds 2021 funds 2021 2021 funds 2020 funds 2020 2020
(£’000) (£’000) (£’000) (£’000) (£’000) (£’000)
Income from charitable activities
Care and support 13,057 4,567 17,624 17,924 1 17,925
Local engagement 2,235 1,760 3,995 2,261 1,704 3,965
Technology and support services 1,273 0 1,273 4,969 0 4,969
Research 155 0 155 193 0 193
Policy and campaigning 8 0 8 10 0 10
16,728 6,327 23,055 25,357 1,705 27,062
Unrestricted Unrestricted
funds 2021 funds 2020
(£’000) (£’000)
Income from trading activities
Weekly lottery 271 312
Other income 68 161
339 473
----- End of picture text -----

Annual Report & Financial Statements 2020/21 Financial Statements 71

Notes to the Financial Statements

6. Expenditure

----- Start of picture text -----
Direct costs (£’000) Support costs (£’000) Total (£’000)
Staff Other Staff Other 2021 2020
Expenditure on raising funds from
trading activities
Fundraising costs 2,084 1,430 701 293 4,508 5,087
2,084 1,430 701 293 4,508 5,087
Charitable activities
Care and support 13,666 3,683 2,538 1,006 20,893 20,136
Local engagement 3,911 932 749 639 6,231 7,563
Technology and support services 719 1,177 229 142 2,267 6,579
Research 228 1,295 86 36 1,645 1,629
Policy and campaigning 337 33 44 50 464 515
18,861 7,120 3,646 1,873 31,500 36,422
Total expenditure 20,945 8,550 4,347 2,166 36,008 41,509
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Expenditure on charitable activities was £31.5m (2020: £36.4m) of which £23.6m was from unrestricted funds (2020: £33.4m) and £7.6m was from restricted funds (2020: £2.5m). Other costs consists mainly of travel and subsistence, rent, rates and legal fees.

72 RNID

Notes to the Financial Statements

7. Support costs

----- Start of picture text -----
2021
Fundraising 487 163 74 59 0 179 31 993
Care and support 882 792 247 919 0 295 410 3,545
Local engagement 200 224 234 164 0 463 104 1,389
Technology and enterprise 64 76 57 44 0 107 23 371
Research 8 72 5 4 0 31 2 122
Policy and campaigning 0 17 16 12 0 41 7 93
Total 1,641 1,344 633 1,202 0 1,116 577 6,513
2020
Fundraising 951 147 129 67 21 209 9 1,533
Care and support 1,126 678 432 1,046 271 343 125 4,021
Local engagement 249 245 409 187 69 539 32 1,730
Technology and enterprise 312 240 100 50 15 125 7 849
Research 12 64 9 5 1 36 1 128
Policy and campaigning 1 16 29 14 4 48 2 114
Total 2,651 1,390 1,108 1,369 381 1,300 176 8,375
Corporate and Management (£’000) Finance and Strategy directorate (£’000) Information systems (£’000) People, Learning and Development (£’000) Risk and Legal (£’000) Property (£’000) Governance (£’000) Total 2021 (£’000)
Corporate and Management (£’000) Finance and Strategy directorate (£’000) Information systems (£’000) People, Learning and Development (£’000) Risk and Legal (£’000) Property (£’000) Governance (£’000) Total 2020 (£’000)
----- End of picture text -----

Support costs were apportioned to activities on the basis of turnover (for corporate and management), cost (for finance and strategy directorate), headcount (for information systems, people, learning and development, risk and legal, property and governance).

Annual Report & Financial Statements 2020/21 Financial Statements 73

Notes to the Financial Statements

8. Net expenditure for the year

----- Start of picture text -----
2021 £’000 2020 £’000
----- End of picture text -----

This is stated after charging/(crediting):
Interest payable:
Bank interest, bank loans and overdrafts wholly
repayable within fve years	89	178
Depreciation/amortisation charge for the year	345	465
Loss/(Proft) on disposal of fxed assets	6	-17
Payments under operating leases:
Land and buildings	795	727
Vehicles and equipment	189	225
Loss on foreign exchange	-0	2
Auditors’ remuneration:
Statutory audit fee	49	49
Other non-audit fee	13	18
Tax advisoryservices	10	9

9. Grants payable

The aggregate amount of grants made during the year ended 31 March 2020, analysed by recipient was:

	2021 Number of grants	2021 Total (£’000)	2020 Total (£’000)
Medical research into hearing loss
Institution
University College London	8	261	279
King’s College London	4	150	171
University of Strathclyde	0		13
University of Shefield	4	91	75
University of Sussex	1	60	80
University of Notingham	1	25	38
University of Southampton	1	13	25
University of Manchester	2	100	49
Brunel University	1	14	27
University of Cambridge	2	30	35
Cardif University	1	13	12
MRC Harwell	0		26

74 RNID

Notes to the Financial Statements

9. Grants payable (ctd)

----- Start of picture text -----
2021 2021 2020
Number of grants Total (£’000) Total (£’000)
Johns Hopkins University 1 54 24
Harvard Medical School 0 24
National Center for Biological Sciences, TIFR 1 41 52
Bionics Institute 1 55 54
University of Michigan 1 56 50
University of Western Ontario 1 53 27
University of Oxford 2 50 37
Newcastle University 2 25 19
Pragma Therapeutics 0 100
Imperial College London 0 2
NYU School of Medicine 0 10
Ear Science Institute Australia 0 10
University of Auckland 0 6
University of Buenos Aires 0 10
Cognosetta, Inc. 0 10
Flinders 1 25
Institute Pasteur 1 69
Indiana University 1 53
Brigham and Women’s Hospital 1 33
University of Zurich 1 10
39 1,281 1,264
Total grants 39 1,281 1,264
----- End of picture text -----

Of the total grant funding made during the year, £1.28m (2020: £1.26m) related to biomedical research projects.

In addition to the above, the charity expects to fund future grants totalling £1.92m (2020: £2.28m), which have been awarded subject to satisfactory reviews during the course of the project being funded. These have not been provided for in RNID’s Financial Statements.

The expenditure for grants sits within the Research’ line for charitable expenditure within the SoFA.

Annual Report & Financial Statements 2020/21 Financial Statements 75

Notes to the Financial Statements

10. Employees and trustees

----- Start of picture text -----
2021 2020
(£’000) (£’000)
Employees taff costs consist of:
Wages and salaries 22,346 22,670
Social security costs 1,655 1,651
Pension costs 408 655
24,409 24,976
----- End of picture text -----

Total redundancy costs in the year were £186,363 (2020: £75,425) of which £nil was accrued costs at the year end (2020: £55,029).

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |(Number)|(Number)| |The average headcount of employees, analysed by function, was:| |Care and support|591|622| |Local engagement|150|177| |Technology and support services|26|38| |Research|3|4| |Policy and campaigning|9|10| |Fundraising and Marketing|48|42| |Finance, Human Resources, Information Technology and administration|72|77| |899|970|

----- End of picture text -----

76 RNID

Notes to the Financial Statements

10. Employees and trustees (ctd)

----- Start of picture text -----
2021 2020
(Number) (Number)
----- End of picture text -----

The number of employees whose remuneration was over £60,000
(excluding employer pension contributions) fell within the following bands:
£60,001 to £70,000	6	7
£70,001 to £80,000	-	2
£80,001 to £90,000	5	3
£90,001 to £100,000	3	2
£150,001 to £160,000	-	1
£160,001 to £170,000	1	-

None of these employees (2020: nil) are in the defined benefit pension scheme, and all (2020: all) are in the defined contribution pension scheme. Contributions in the pension year to the defined contribution scheme were £46,682, in respect of all employees (2020: all with contributions of £45,728).

----- Start of picture text -----
Inc. pension contributions Excl. pension contributions
2021 2021 2021 2020
(£’000) (£’000) (£’000) (£’000)
Remuneration and benefits for the Chief Executive
Officer and other Key Management Personnel
Key management personnel 801 963 776 934
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Key Management Personnel is defined as members of the Executive Group. There were 9 Executive Officers in post in the year (2020: 9).

Trustees

None of the members of the Board of Trustees received any remuneration during this year (2020: £nil). During the year, no Trustees (2020: 5) received reimbursements of non-private travel and subsistence expenditure amounting to nil (2020: £5,677). The value of expenses waived was not material.

Total donations in the year from Trustees amounted to nil (2020: £6,925).

Annual Report & Financial Statements 2020/21 Financial Statements 77

Notes to the Financial Statements

11. Intangible fixed assets

----- Start of picture text -----
Assets under
Computer software construction Total
(£’000) (£’000) (£’000)
Cost
At the beginning of the year 1,455 11 1,466
Additions 0 40 40
Disposals (34) 0 (34)
At the end of the year 1,421 51 1,472
Accumulated amortisation
At the beginning of the year (1,204) 0 (1,204)
Charge for year (110) 0 (110)
Disposals 34 0 34
At the end of the year (1,280) 0 (1,280)
Net book value at 31 March 2021 141 51 192
Net book value at 31 March 2020 251 11 262
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Assets under construction are not amortised and comprise expenditure on the purchase or creation of intangible assets not brought into use at the balance sheet date. Transfers are made from assets under construction to the relevant category of intangible asset when the asset is brought into use.

Within intangible assets are computer software under construction with a cost of £51k (2020: £11k).

78 RNID

Notes to the Financial Statements

12. Tangible fixed assets

----- Start of picture text -----
Cost
At the beginning
of the year 10,167 242 120 16 10,545 1,356 110 383 4 2 1,855 12,400
Additions 0 0 0 34 34 0 0 0 0 246 246 280
Disposals (2) 0 0 0 (2) (17) (4) (19) 0 0 (40) (42)
Transfer 14 0 0 (14) 0 0 0 0 0 0 0 0
At the end
of the year 10,179 242 120 36 10,577 1,339 106 364 4 248 2,061 12,638
Accumulated depreciation
At the beginning
of the year (3,379) (91) (114) 0 (3,584) (1,212) (110) (279) (4) 0 (1,605) (5,189)
Charge for year (219) (7) (4) 0 (230) (51) 0 (63) (0) 0 (115) (344)
Disposals 0 0 0 0 0 13 4 19 0 0 36 36
At the end
of the year (3,598) (98) (118) 0 (3,814) (1,250) (106) (323) (4) 0 (1,683) (5,497)
Net book value
at 31 March 2021 6,581 144 2 36 6,763 89 0 41 0 248 378 7,141
Net book value
at 31 March 2020 6,788 151 6 16 6,961 144 0 104 0 2 250 7,211
Freehold (£’000) Long leasehold (£’000) Short leasehold (£’000) Assets under construction (£’000) Total property (£’000) Fixtures, fittings & furniture (£’000) Other equipment (£’000) Computer equipment (£’000) Motor vehicles (£’000) Assets under construction (£’000) Total other (£’000) Grand total (£’000)
----- End of picture text -----

Assets under construction are not depreciated and comprise expenditure on the purchase or creation of tangible assets not brought into use at the balance sheet date. Transfers are made from assets under construction to the relevant category of tangible asset when the asset is brought into use.

Within tangible assets are computer equipment under construction with a cost of £246k (2020: £nil) and property under construction with a cost of £3k (2020: £16k).

Other equipment includes home appliances such as washers and dryers, television stands, projectors, chairs and cookers.

Annual Report & Financial Statements 2020/21 Financial Statements 79

Notes to the Financial Statements

13. Debtors

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2021 2020
(£’000) (£’000)
Trade debtors 1,869 3,123
Amounts owed by subsidiary undertaking (0) (0)
Other debtors 20 28
Prepayments and accrued income 1,146 1,901
3,035 5,052
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14. Creditors

----- Start of picture text -----
2021 2020
(£’000) (£’000)
(a) Amounts falling due within one year
Trade creditors 1,038 1,434
Accruals for grants payable 0 266
Taxation and social security 410 423
Loan 450 31
Other creditors 198 125
Accruals 1,348 1,891
Deferred income 1,290 1,049
4,734 5,219
Deferred income at the beginning of the year 1,049 773
Amount released to income earned from charitable activities (1,049) (773)
Amount deferred in year 1,093 1,093
Deferred income at the end of the year 1,093 1,093
(b) Amounts falling due after more than one year
Net obligations under bank loan is as follows:
between one and two years 786 32
between two to five years 397 104
over five years 766 803
1,949 939
----- End of picture text -----

80 RNID

Notes to the Financial Statements

14. Creditors (ctd)

Within the year 2019-20, the charity had repaid and cancelled the revolving credit facility of £3m.

Amounts falling due after one year relates to a mortgage of £2.7m (2020: £2.7m) payable over 25 years, commencing 4 May 2016, to purchase five properties and to enable the transfer of adult services in Westgate on Sea.

The mortgage is secured over the five properties and two other properties.

At 31 March 2021, the total amount owing on the loan is £0.9m (2020: £1m). Interest is charged at base rate plus 3.25%. The base rate was 0.10% (2020: 0.1%).

Within the year, a SIB resilience loan was taken out for £1.5m, the total amount owing on the loan at 31 March 2021 is £1.46m. Interest is not charged in the first year as this is a government scheme to help businesses respond to COVID-19.

15. Contingent assets – legacies

The trustees have been notified that the charity is a beneficiary of a number of estates for which the amounts to be paid to the charity have not yet been confirmed. In view of the uncertainty over the amounts that may be received, the trustees have concluded that the conditions for recognition of these legacies have not yet been met and accordingly these legacies are not reflected in these Financial Statements. Provisional estimates indicate a potential value of these legacies of £6.2m (2020: £5.4m).

Annual Report & Financial Statements 2020/21 Financial Statements 81

Notes to the Financial Statements

16. Analysis of net assets between funds

----- Start of picture text -----
Unrestricted Restricted Endowment Total funds
funds funds funds 2021
(£’000) (£’000) (£’000) (£’000)
Fund balances at 31 March 2021 are represented by:
Intangible fixed assets 192 0 0 192
Tangible fixed assets 6,660 481 0 7,141
Current assets 6,370 3,715 68 10,153
Current liabilities (4,570) (164) 0 (4,734)
Long-term liabilities (1,949) 0 0 (1,949)
Provision for liabilities and charges (290) 0 0 (290)
Pension liability (3,167) 0 0 (3,167)
Bath Charity Loan 939 (939) 0 0
Net assets 4,185 3,093 68 7,346
Unrestricted Endowment Total funds
funds Restricted funds funds 2020
(£’000) (£’000) (£’000) (£’000)
Fund balances at 31 March 2020 are represented by:
Intangible fixed assets 262 0 0 262
Tangible fixed assets 5,755 1,456 0 7,212
Current assets 9,205 2,288 68 11,561
Current liabilities (4,934) (285) 0 (5,219)
Long-term liabilities (939) 0 0 (939)
Provision for liabilities and charges (290) 0 0 (290)
Pension liability 0 0 0 0
Net assets 9,060 3,459 68 12,587
----- End of picture text -----

17. Provision for liabilities

	Balance 31 March 2020 (£’000) Charged to income and expenditure (£’000)	Spent (£’000)	Balance 31 March 2021 (£’000)
Provisions for dilapidations	(290) 0	0	(290)

As part of the property leasing arrangements there is an obligation to repair damages, on certain properties, incurred during the life of the lease, such as wear and tear. The cost is charged to the statement of financial activities as the obligation arises. The provision is expected to be utilised as the leases terminate.

82 RNID

Notes to the Financial Statements

18. Pensions

RNID operates a funded pension scheme in the UK (the ‘Scheme’). The Scheme has a Defined Benefit Section, and previously a relatively small Defined Contribution Section where all benefits were transferred to a new Master Trust arrangement with effect from 1 August 2018. Pension benefits in the Defined Benefit Section are related to the members’ final salary at retirement (or earlier if they leave the Scheme before retirement) and their length of service. Accrual of benefits under the Defined Benefit Section of the Scheme ceased with effect from 31 March 2010.

The Scheme Trustees are responsible for the operation and governance of the Scheme, including making decisions on the Scheme’s funding and investment strategies in conjunction with RNID. RNID is required to meet any additional funding payments that may be necessary as assessed by a formal scheme funding valuation every three years. The most recent scheme funding valuation as at 31 March 2018 revealed a deficit and RNID agreed to make an additional contributions to the Scheme to remove this deficit and meet expected Scheme expenses. Contributions of £0.94m were required for the year ending 31 March 2021, £1.29m for the period to 31 March 2023 and £1.33m for the period from 1 April 2021 to 31 January 2034.

An actuarial valuation of the Scheme was carried out at 31 March 2021 by a qualified independent actuary, based on membership data as at 31 March 2018 but amended to make an approximate allowance for benefit outgo and member movements during the period.

Contributions to the Scheme for the year beginning 1 April 2021 are expected to be £1,292,000. Except where stated otherwise, the remainder of this FRS 102 pensions note relates only to the Defined Benefit Section of the Scheme.

The major assumptions used by the actuary were (in nominal terms) as follows:

----- Start of picture text -----
As at 31/3/2021 As at 31/3/2020
Discount rate 1.90% 2.30%
Inflation assumption (RPI) 3.30% 2.60%
Future LPI pension increases 3.20% 2.60%
Revaluation in deferment (RPI) 3.30% 2.60%
----- End of picture text -----

Assumed life expectancies on retirement at age 65 are:

	As at 31/3/2021	As at 31/3/2020
Retiring today – Males	21.3	21.3
Retiring today – Females	23.7	23.6
Retiring in 20 years time – Males	22.6	22.6
Retiringin 20years time – Females	25.2	25.1

Annual Report & Financial Statements 2020/21 Financial Statements 83

Notes to the Financial Statements

18. Pensions (ctd)

The fair value of the Scheme’s assets, which are not intended to be realised in the short term and may be subject to significant change before they are realised, and the present value of the Scheme’s liabilities, which are derived for cash flow projections over long periods and thus inherently uncertain, were:

----- Start of picture text -----
Value at 31/3/2021 Value at 31/3/2020
£000s £000s
Equity 18,603 8,688
Structured equity 15,656 12,936
Fixed Interest 27,341 31,888
Index linked gilts 7,213 6,208
Liability hedging (2,156) 2,725
Currency hedging 111 (334)
Insured annuities 414 491
Property 2,123 2,172
Cash 1,390 2,778
Alternatives 5,250 5,701
Fair value of Scheme assets 75,945 73,253
The actual return on assets over the period was: 4,686 3,403
----- End of picture text -----

None of the assets of the Scheme are invested in RNID’s own fnancial instruments and none	None of the assets of the Scheme are invested in RNID’s own fnancial instruments and none	None of the assets of the Scheme are invested in RNID’s own fnancial instruments and none
of the assets are properties or other assets used by RNID.
Present value of funded obligations	79,112	71,923
Fair value of Scheme assets	75,945	73,253
Surplus/(defcit) in funded scheme Present value of unfunded obligations Unrecognised actuarial gains (losses) Surplus/(defcit) in funded scheme Adjustment in respect of asset ceiling and minimum funding requirement Net asset/(liability) in balance sheet	(3,167) 0 0 (3,167) 0 (3,167)	1,330 0 0 1,330 (1,330) 0

84 RNID

Notes to the Financial Statements

18. Pensions (ctd)

----- Start of picture text -----
31/3/2021 31/3/2020
£000s £000s
Reconciliation of opening and closing balances of the present
value of the defined benefit obligation
Benefit obligation at beginning of year 71,923 77,313
Current service cost 0 0
Interest cost 1,625 1,827
Contributions by Scheme participants 0 0
Actuarial (gains)/losses 8,128 (4,783)
Benefits paid (2,564) (2,434)
Past service cost 0 0
Settlements 0 0
Business combinations 0 0
Exchange rate 0 0
Benefit obligation at end of year 79,112 71,923
31/3/2021 31/3/2020
£000s £000s
Reconciliation of opening and closing balances of the fair value
of Scheme assets
Fair value of Scheme assets at beginning of year 73,253 71,300
Interest income on Scheme assets 1,662 1,694
Return on assets, excluding interest income 3,024 1,709
Contributions by employers 940 1,227
Contributions by Scheme participants 0 0
Benefits paid (2,564) (2,434)
Scheme administrative cost (370) (243)
Business combinations 0 0
Settlements 0 0
Exchange rate 0 0
Fair value of Scheme assets at end of year 75,945 73,253
----- End of picture text -----

Annual Report & Financial Statements 2020/21 Financial Statements 85

Notes to the Financial Statements

18. Pensions (ctd)
The amounts recognised in proft or loss: Service cost – including current and past service costs, and setlements Service cost – administrative cost Net interest on the net defned beneft liability Total expense	31/3/2021 £000s 31/3/2020 £000s 0 0 370 243 (6) 133 364 376
Amount recognised in Statement of Financial Activities (SoFA): Actuarial (gains)/losses on the liabilities Return on assets, excluding interest income Changes in the efect of the asset ceiling excluding interest income Total actuarial (gain)/loss to be shown in SoFA	31/3/2021 £000s 31/3/2020 £000s 8,128 (4,783) (3,024) (1,709) (1,361) 1,330 3,743 (5,162)
Sensitivity analysis
	Change in assumption Impact on scheme liabilities 31/3/2021
A sensitivity analysis of the principal assumptions
used to measure the scheme liabilities
Discount rate	Increase by 0.25% Decrease by £3.3m
Rate of infation (RPI)	Increase by 0.25% Increase by £1.7m
Assumed life expectancyat age 65	Increase by1year Increase by£5.4m

2. Defined contribution scheme

The Charity provides two defined contribution schemes for it’s employees, although one is now closed to new entrants.

----- Start of picture text -----
2021 2020
(£’000) (£’000)
The amount recognised as an expense for the
defined contribution scheme was:
Current year contributions 408 655
----- End of picture text -----

86 RNID

Notes to the Financial Statements

19. Statement of funds – restricted and endowment funds

The purposes of these funds are explained on pages 89-94

----- Start of picture text -----
Balance
Balance 1 April Income Expenditure 31 March 2021
2020 (£’000) (£’000) (‘000) (‘000)
----- End of picture text -----

Restricted
The Bath Charity	1,456	4,567	(5,543)	481
Sussex Deaf Association	429	0	4	433
Aged Veterans Healthy Living*	115	0	(56)	59
Legacy Leeds	61	0	(15)	46
The National Lotery Community Fund HTIAS	81	74	(24)	131
The National Lotery Community Fund HTIAC	79	(0)	3	81
Legacy restricted to Wolverhampton	0	0	(0)	(0)
PoppyScotland Aged Veterans	58	58	(115)	2
Employment programme for people who
are deaf or have hearing loss in Glasgow	33	0	(22)	11
Harlow Trust Fund	28	0	0	28
Legacy restricted to research	32	0	(32)	0
Legacy restricted to the Isle of Wight	11	0	(11)	0
Legacy restricted to the South West region	32	0	(5)	27
Employment in Hampshire	25	0	(1)	24
Legacy restricted to South Wales	0	0	0	0
Sensory services in Ayrshire*	0	0	0	0
Access to Health Salford	32	0	(8)	24
Restricted legacy (purpose under discussion)	19	0	0	19
Manchester Hear to Help*	11	0	0	11
VAF Wellbeing for Longer Fund	0	0	0	0
Legacy restricted to the Cardif area	0	0	0	0
Grants restricted to use in Scotland	49	216	(0)	265
Discovery Research Project	9	0	(9)	0
Research into improving the understanding and
diagnosis of auditory processing disorder (APD)	0	0	0	0
In Touch*	2	0	(2)	0
Devon & Cornwall	17	17	0	0
Hear For Welfare*	12	36	(37)	11
Hear 2 Inform & Connect	10	0	0	10
Salford CCG Innovation Fund*	4	20	(14)	11
PHD Studentship	0	0	0	0
Specialist Employment Project*	16	146	(131)	31
Amenity Funds	6	6	0	0

Annual Report & Financial Statements 2020/21 Financial Statements 87

Notes to the Financial Statements

19. Statement of funds – restricted and endowment funds (ctd)

----- Start of picture text -----
Balance
Balance 1 April Income Expenditure 31 March 2021
2020 (£’000) (£’000) (‘000) (‘000)
----- End of picture text -----

Restricted
Hear to Help Lewisham	17	0	(10)	7
Roper House – Staf and Art Room	4	0	(2)	2
Stockport	0	0	0	0
Information Services	5	0	0	5
Hear to Help Brighton	5	0	0	5
Leicester Ageing Together*	5	0	0	5
Community Navigator Project	13	0	0	13
Specialist Employment Project*	9	66	(69)	6
Foley Trst – Roper Hse Imprvmt	400	0	0	400
RNID/Masonic Charitable Foundation Studentship Award	70	0	(25)	46
PhD Studentship	63	25	(25)	63
Jobsense	57	843	(471)	429
Befriending Project NI	33	21	(36)	18
City Bridge Inform & Connect Ldn	30	0	0	30
Discovery Research Project	25	0	0	25
Glasgow Integrated Sensory Services*	20	7	(17)	10
Impact Funding Partners – Scotish Government	16	11	(16)	11
Northern Ireland	15	94	(109)	0
Ayreshire & Arran ISS	13	3	(9)	7
Sensory Impairment Awareness	9	6	(15)	(0)
North of Tyne Hear to Help	9	1	0	10
DHSSSPS Core Grant	0	28	(28)	0
PHD Studentship at King’s College London	0	1	(1)	0
PHD Studentship at King’s College London	0	0	(0)	(0)
PHD Studentship at UCL	0	5	(5)	0
Discovery Research Project at MRC Cognition and Brain
Sciences Unit, University of Cambridge	0	5	0	5
Summer Studentships 2022	0	20	0	20
Middlesborough Deaf Centre	0	1	(1)	0
Coronavirus Community Support fund	0	100	(100)	(0)
Blackburn and Preston area	0	5	0	5

88 RNID

Notes to the Financial Statements

19. Statement of funds – restricted and endowment funds (ctd)

----- Start of picture text -----
Balance
Balance 1 April Income Expenditure 31 March 2021
2020 (£’000) (£’000) (‘000) (‘000)
Rosetrees Trust – Biomedical Research – Dr Shekhawat
– Flinders University 0 13 0 13
Information Services 0 25 0 25
DHSC 0 212 (212) (0)
Digital Inclusion Scotland 0 0 0 0
Community Jobs Scotland 0 5 (5) (0)
Click & Collect 0 0 0 0
H2H ABMU 0 0 (0) (0)
Williams TDI/8499/N Wales 0 2 0 2
PPE Grant from WCVA 0 18 (3) 16
Infection Control Grant 0 0 0 0
North East (0) 0 0 (0)
Cooperative Charity ofthe Year 0 0 (0) (0)
Regional Communication Officer NI 0 2 (1) 1
Information Line 0 85 0 85
Other restricted funds 14 641 (549) 104
Restricted Funds 3,459 7,363 (7,727) 3,093
Endowed
The Wennington Charity 68 0 0 68
Endowed Funds 68 0 0 68
Total Restricted and Endowed Funds 3,527 7,363 (7,727) 3,161
----- End of picture text -----

*Government-funded

Annual Report & Financial Statements 2020/21 Financial Statements 89

Notes to the Financial Statements

19. Statement of funds – restricted and endowment funds (ctd)

The Bath Charity is restricted to providing relief for the charitable needs of people who are deaf or have hearing loss by the provision of services.

Sussex Deaf Association donation is restricted to the relief of persons residing in the

counties of East and West Susses and the City of Brighton and Hove who are deaf or hard of hearing. RNID merged with Sussex Deaf Association on 1 July 2018. Sussex Deaf Association is incorporated in the United Kingdom (company number 9740664). RNID wholly owns Sussex Deaf Association, which is a Company Limited by Guarantee.

Aged Veterans Healthy Living is a project to provide information to older veterans with hearing loss.

For the use and benefit of the Leeds branch.

Funding for Devon and Cornwall to help people with hearing loss improve their confidence and knowledge on how to better manage their hearing loss.

Hear to Inform and Connect is enabling us to proactively expand our face-to-face information provision for older people (aged 50+) with hearing loss, particularly those who we have found are harder to reach. This includes older people from black, Asian and minority ethnic communities, older people living in care homes and older people living in rural or remote areas.

A legacy restricted to the Wolverhampton area.

PoppyScotland will provide support for veterans aged 65 and over, their families and carers in Lothian. We’ll be helping people by providing vital information and supporting to help them to cope with their hearing loss or tinnitus at regular drop-ins, information events or home visits.

To provide funding in Glasgow for improving the health, wellbeing and life skills of, and increasing access to information and services, for people who are deaf or have hearing loss. The project works with other agencies to provide information and advice in provision of healthcare, social care, education, training, employment and leisure. It will also fund delivery of a programme of accredited training courses, develop a user forum, support work placements and encourage peer support within central Scotland.

90 RNID

Notes to the Financial Statements

19. Statement of funds – restricted and endowment funds (ctd)

The Harlow Trust provides funding for people who are deaf or have hearing loss to participate in financial qualification courses.

A legacy restricted to research.

A legacy restricted to the Isle of Wight.

A legacy restricted to funding in the South West region.

General restriction to Employment services in Hampshire.

A legacy restricted to funding in South Wales.

Ayrshire and Arran Integrated Sensory Services are delivered in partnership with RNIB and support people with sensory impairment living in the Ayrshire and Arran area, by strengthening existing structures, introducing additional support services such as Hear to Help, and raising awareness and the profile of sensory impairment in the region.

Access to Health Salford was set up to deliver a pilot project to improve awareness amongst GPs, healthcare professional; amid staff working in GP practices and health centres of the barriers encountered by residents of Salford who are deaf or have hearing loss.

A restricted legacy (purpose is under discussion).

Manchester Hear to Help is a volunteer-led service that provides hearing aid support on a one-to-one basis and in a drop-in setting in communities across Manchester.

The Wellbeing for Longer in Glasgow Fund is funded by Glasgow Health and Social Care Partnership with the aim to support community and third sector organisations to design and deliver programmes enabling Glasgow residents most likely to experience isolation (by barriers such as age, disability, poverty and language), to sustain their wellbeing and reduce isolation.

A legacy restricted to funding in the Cardiff area.

General donations restricted to use in Scotland.

Annual Report & Financial Statements 2020/21 Financial Statements 91

Notes to the Financial Statements

19. Statement of funds – restricted and endowment funds (ctd)

Discovery Research project investigating the processes that are involved in the development of Usher syndrome – a condition that affects both hearing and sight.

Funding to be used towards research into Improving the understanding and diagnosis of . auditory processing disorder (APD)

The In Touch project aims to help people who are deaf or have hearing loss across Northern Ireland and will specifically target those people living in the community and in residential accommodation.

General restriction to support elderly people with hearing loss in Devon & Cornwall.

The grant Hear For Welfare aims to reduce discrimination against people who share protected characteristics; reduce levels of hate crime; increase community participation, engagement and community cohesion; address imbalances in representation in all aspects and levels of public life.

Hear 2 Inform & Connect project aim to reduce the barriers often faced by people with hearing loss, supporting them to remain connected with their families, friends and the world around them, ultimately reducing feelings of isolation.

Salford CCG Innovation fund is a grant provided to recruit a project co-ordinator to deliver support on hearing loss, including hearing screening and training for staff and volunteers across Sheltered Housing Schemes in Salford as response to our Hearing Matters report.

PHD Studentship at UCL into glia cells and auditory nerve damage.

The Specialist Employment Programme is aimed at enhancing the employability of people who are deaf, have a hearing loss and/or tinnitus through the provision of specialist support. The Service is funded by the European Social Fund with Match Funding from the Disability Employment Service.

Amenity funds to spend on outings, entertainment costs, gifts, furniture for service users in Care & Support.

92 RNID

Notes to the Financial Statements

19. Statement of funds – restricted and endowment funds (ctd)

Hear to Help Lewisham is a volunteer-led service that provides hearing aid support on a oneto-one basis and in drop-in settings in the Lewisham area. It also provides information on hearing equipment and other services available for local people with hearing loss.

Restricted to Roper House – Staff and Art Room .

Stockport is the restricted for the purposes of the branch nearest to Stockport.

Adint Charitable Trust wishes to support people with hearing loss in Devon and Cornwall.

Brighton Hear to Help provides hearing aid support on a one-to-one basis and in drop-in settings in Brighton.

Leicester Aging Together is a peer-to-peer information and support project for older people who are deaf or have hearing loss in the Leicester area. Volunteers will support older people with information, advise, and the long-term management of their hearing aids and hearing loss and provide opportunities for people to come together and share information and experiences.

Community Navigator Project aims to develop creative approaches to reducing social isolation for older people in Greater Manchester.

The Specialist Employment Programme is aimed at enhancing the employability of people who are deaf, have a hearing loss and/or tinnitus through the provision of specialist support. The Service is funded by the European Social Fund with Match Funding from the Disability Employment Service.

Foley Trust – Roper House Improvement Fund is to be used to renovate Roper House.

RNID/Masonic Charitable Foundation Studentship Award funding for S57 and 1 other PhD studentship

PhD Studentship at Oxford university.

Jobsense is a EU funded project to support people into employment.

Befriending Project NI provides funds for befriending in NI.

Annual Report & Financial Statements 2020/21 Financial Statements 93

Notes to the Financial Statements

19. Statement of funds – restricted and endowment funds (ctd)

City Bridge Inform & Connect Ldn is a fund towards staffing and operational costs of the Hear to Inform and Connect project for older people in London.

Discovery Research project at University of Sheffield restricted for research into restoring hearing.

Glasgow Integrated Sensory Services support people with sensory impairment living in the Greater Glasgow and Clyde area by strengthening existing structures, introducing additional support services such as Hear to Help, and by raising awareness and the profile of sensory impairment in the region.

Impact Funding Partners – Scottish Government is funding to employ a trainer to work with Sky Television on the working for change project.

General donations restricted to be used to benefit Northern Ireland.

General donations restricted to Ayreshire & Arran Integrated Sensory Services.

Fund restricted for Sensory Impairment Awareness.

General restriction to Hear to Help service in North of Tyne.

Department of Health NI Core Grant is funding towards the salary for RNID’s Director, NI.

PhD Studentship at KCL investigating the development of otosclerosis

PhD Studentship at KCL investigating the development of otosclerosis

PhD Studentship at UCL

Biomedical research project at Cambridge university

Funding specifically for summer studentships in 2022

Legacy restricted to use for Middlesbrough Deaf Centre

94 RNID

Notes to the Financial Statements

19. Statement of funds – restricted and endowment funds (ctd)

Information provision across England including national helpline

To be used for RNID’s general purposes in the Blackburn and Preston areas (Kenyon M 8574)

Discovery research project at Flinders university, Australia.

Information services – grant from the Garfield Weston Foundation to support the Information Line service, new digital self-help toolkit and new digital hearing check.

Funding agreement for increased availability of support to disabled people in England during COVID-19 2020-21

Digital Inclusion Scotland

Funding restricted to hiring staff for community jobs in Scotland

Funding to provide a 6-month click and collect pilot in Glasgow.

Hear to Help Wales

Legacy restricted to helping people in North Wales

Restricted donation from WCVA to purchase PPE and other essential items to enable a return to the office and safe face-to-face working in the community.

Infection control grant to support care homes to reduce the rate of COVID-19 transmissions in and between care homes and support wider workforce resilience.

General donations for North East area

Cooperative Charity of the Year

Funding for Regional Communication Officer in Northern Ireland

Information Line service – large grant from Hollyhock Charitable Foundation to support the Information Line service. Budget includes costs towards three roles.

Other restricted funds comprises of 34 restricted funds providing income in support of RNID activities.

Annual Report & Financial Statements 2020/21 Financial Statements 95

Notes to the Financial Statements

20. Capital commitments – Charity

	2021 (£’000)	2020 (£’000)
Contracts for future capital expenditure not provided in the
Financial Statements –property,plant and equipment	229	3

21. Operating leases

As of 31 March 2021, RNID had a total value of minimum future lease payments as set out below:

----- Start of picture text -----
2021 2020
(£’000) (£’000)
Payments due
Within one year 616 872
Between one and five years 827 842
1,443 1,714
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22. Notes to the cash flow statement

----- Start of picture text -----
2021 2020
(£’000) (£’000)
Net expenditure for the reporting year
(as per the statement of financial activities) (1,498) 1,193
Adjustments for:
Depreciation charge for the year on tangible assets 345 465
Amortisation charge for intangible assets 110 276
Interest paid 89 178
Interest/dividend received (3) (14)
-
Gain/(loss) on disposal of intangible/tangible assets (17)
Decrease in stock 2 163
Decrease in debtors 1,990 (224)
(Decrease)/increase in creditors (458) (1,731)
Decrease in non-current long-term loan 1,010 (1,917)
-
Decrease in provisions for liabilities and charges (1)
Pensions reserve funding deficit movements (576) (851)
Net cash used in/(generated from) operating activities 1,011 (2,481)
----- End of picture text -----

96 RNID

Notes to the Financial Statements

22. Notes to the cash flow statement (ctd)

	At 1 April 2020 £’000	Cashfows £’000	At 31 March 2021 £’000
Analysis of cash and cash equivalents
Cash at bank and in hand	6,508	610	7,118

23. Related party transactions

Mark Atkinson is the Chief Executive (appointed in October 2018) and is also the Director of the Social Care Institute for Excellence (appointed in March 2019). There was no charge for training costs (2020: £325). Mark is also the Director of Habinteg Housing Association Ltd (appointed in Jan-20). There was £24,353 charged for housing association fees (2020: £9,686).

Lindsay Foster is a Charity Trustee (appointed in August 2018) and is also the Executive Director of Signature (trading arm of CACPD). There was £231 charged for agency fees, training and attendance at conferences (2020: £2,665).

24. Events after the reporting year

On 30th June 2021, RNID successfully transferred care and support services in England and Wales to Achieve together, a leading care and support provider.

Achieve together are passionate about building on their existing experience in delivering specialist support for people who are deaf or have hearing loss.

600 staff transferred to Achieve together with the care and support services, ensuring continuity for the people we supported in these services.

The two care and support services in Northern Ireland were retained. They are Harkness Gardens residential service and Derry/Londonderry (outreach and supported living). RNID will continue to run these two services, supporting 16 people, as options for the future are explored.

Annual Report & Financial Statements 2020/21 Financial Statements 97

Notes to the Financial Statements

24. Events after the reporting year (ctd)

Income and Expenditure for the discontinuing activities are set out below.

----- Start of picture text -----
Unrestricted funds Restricted funds Total funds 2021
(£’000) (£’000) (£’000)
Income from charitable activities:
Care and support 12,314 4,567 16,881
Expenditure on charitable activities:
Care and support 14,116 5,574 19,689
Net movement in funds (1,802) (1,006) (2,808)
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Balance Sheet Items Relating to Care and Support which transferred are set out below.

----- Start of picture text -----
(£’000)
----- End of picture text -----

Fixed assets
Tangible fxed assets	6,925
Made up of
Restricted	1,426
Unrestricted	5,499

98 RNID

Acknowledgements

Statutory

Isle of Wight Council

Sensory Service Contract

London Borough of Redbridge Sensory Service Contract

London Borough of Waltham Forest Sensory Service Contract

Hull CCG and East Riding CCG for Hull and East Riding Hear to Help Hearing Aid Support

Rotherham NHS Trust (Rotherham CCG)

for Rotherham Hear to Help Hearing Aid Support

Department for Communities

Department for the Economy

Department of Health, Nothern Ireland European Social Fund, Northern Ireland

Perth & Kinross Council

Specialist Equipment Support

Scottish Government Promoting Equality and Cohesion Fund Welfare Rights

Poppy Scotland Hearing Forces

South Ayrshire Council Ayrshire Integrated Sensory Service

Scottish Government Workplace Equality Fund Sound Working

Doncaster Deaf Trust Employment

Powys Local Health Board

Welsh Government

JobSense project in Wales supported by the European Social Fund through the Welsh Government

Grants

Department of Health and Social Care

Increased availability of support to disabled people in England during COVID-19 2020-21 funding programme

Aged Veterans Fund, funded by the

Chancellor using LIBOR funds

Supporting veterans with hearing loss project

Isle of Wight CCG

Community Hearing Aid Support

Bath and North East Somerset, Swindon and Wiltshire CCG

Salisbury Community Hearing Aid Support

Middlesbrough Council for Tees Valley Hear to Help

Facilitation of Middlesbrough Deaf Centre, HA support and information

Vision Hearing Support (Previously Sight Service)

Subcontract from South Tyneside Council for Hear to Help South of Tyne

Annual Report & Financial Statements 2020/21 Acknowledgements 99

Salford CCG

Access to Health and Hear to Care projects

Fermanagh and Omagh District Council

Cooperation Ireland

Heartlands Hospital in Birmingham

Hear to Help The National Lottery Community Fund Reaching Communities England

Coronavirus Community Support Fund distributed by The National Lottery Community Fund

Welsh Government Sustainable Social Services Third Sector Grant for Live Well

Partner organisations

Simply Health Connevans More Than Insurance BFI

Trust funders

Ulster Garden Villages Maureen Boal Trust Garfield Weston Foundation Masonic Charitable Foundation Speech, Language and Hearing Foundation Jost Foundation

Rosetrees Trust Robertson Trust – Hear to Help Scotland The Galanthus Trust

Legacy Acknowledgments

It is with deep gratitude that we remember the 340 people who left a gift in their Will to RNID in 2020-21. Every gift left in someone’s Will is truly appreciated. Sadly, we cannot list all of them here, but we would like to acknowledge everyone who chose to support us in this way.

UK Cinema Association (UKCA) Boots Hearingcare

Major donors

Prof Elizabeth Russell Patrick and Dee Murphy and Family Mr and Mrs John Walton Jeff Horne Mrs Nicolette Richards

Dr. Sue Wilson Dr. Roger Allport Christopher Mills Jonathan and Juliet Feldman

100 RNID OUR FUNDERS PERTH & KINROSS COUNCIL Equality and Human Rights COUNCIL Scottish Government Riaghaltos no h-ALba gov.scot INSPIRING SCOTLAND fwéEd twrtmemf Communities Economy Roinn Pobal European Union Europ•an Soel•l Fund Commonities

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GIG Bwrdd lechyd Addy5gu Powys P(pWy5 Teaching Health Board Ly*odraeth Cyrnr Wèlsh G4WèMmÈmt In partnership with . COMMUNITY FUND THE NATIONAL LOTTERY COMMUNITY FUND HM Govemment Department of Health & Social Care NHS Salford Clinical Commissioning Group

Annual Report & Financial Statements 2020/21 Trustees’ Report 101

102 RNID

RNID is the charity making life fully inclusive for deaf people and those with hearing loss or tinnitus.

----- Start of picture text -----
JOIN US
rnid
@rnid
@rnid_uk
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Together, we campaign for an inclusive society. We connect people to practical advice and fund research to pioneer new treatments for hearing loss or tinnitus.

We rely on donations to continue our vital work.

Contact our free, confidential and impartial Information Line.

0808 808 0123 0808 808 9000

SMS 0870 000 0360 [e-mail] rnid.org.uk

RNID is the trading name of The Royal National Institute for Deaf People. A registered charity in England and Wales (207720) and Scotland (SC038926).

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