••• Guide
Dogs
Annual Report.
& Accounts 2(J2
## **Annual Report & Accounts 2020**
04.
You are Guide Dogs
10.
Impact of Covid-19
34.
Case study – Terry & Spencer
46. Structuring and managing Guide Dogs
## 61.
Accounts and financial statements
06.
A welcome from our Chairman[14.]
Case study – Nell & Branwen 36.
Sustainability and Guide Dogs[55.]
Corporate information
## 08.
A welcome from our Chief Executive
16.
Our By My Side strategy 38. Financial performance
56.
Audit report
Contents 01
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Thank
you!
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**2020 was anything but ordinary. The world faced uncertainty and we all had to adapt quickly to new challenges.**
This report is not about us. It’s about you: our service users, staff, volunteers, fundraisers, donors and everyone who has shown their support and resilience this year. Thank you for getting us through.
Because of you, we’ve been able to continue supporting adults and children with sight loss across the UK. You have helped us weather the storm, and we are stronger and better prepared for the future as a result.
**From all of us, thank you.**
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02
I was matched with Spencer, my knight in shining black armour, just as the country went into lockdown. It meant our training couldn’t happen in the traditional way, but Guide Dogs pulled out all the stops for me.”
**Terry Guide dog owner**
Thank you! 03
## You are Guide Dogs
The Guide Dogs family is thousands strong – made up of volunteers, supporters and staff who all play their part to help people with sight loss live the life they choose. If you have a vision impairment, our dedicated family and life-changing dogs are here to help you to:
## **Live actively**
Our people and dogs can help you go wherever school, work or play takes you – and you can be confident that your sight loss won’t hold you back.
## **Live independently**
The advice and skills we provide will give you the freedom to achieve your hopes and ambitions on your terms.
## **Live well**
We can help you through the emotional and practical challenges of sight loss, introducing you to inspiring people with similar experiences and supporting you to be your best.
04 **Guide Dogs** Annual Report & Accounts 2020
My partnership with Colin is absolutely brilliant. He’s given me so much independence and we don’t go out anywhere without each other.”
**Bhavini, guide dog owner**
Our keeping-intouch calls have been absolutely critical for so many people who have felt isolated during the pandemic. For those of us working from home they’ve been a really valuable connection too.”
I’m happiest around dogs, so raising puppies for Guide Dogs is totally up my street. I absolutely love it. I’ve also met so many wonderful people through the charity.”
## **Kim, My Sighted Guide Volunteering Manager**
**Nimmi, Puppy Raiser**
Sam is my best friend, but also a dog. He helps me do everything. He helps me go to different places without getting scared. He’s helped me to actually speak up about my eyes.”
## **Jago, aged 10, and buddy dog, Sam**
Over the last year we’ve had to find new ways to train our dogs. We even borrowed a bus from Transport for Greater Manchester! It meant our future guide dogs didn’t miss out on learning important skills, like getting on and off buses and learning to tuck under the seats.”
**Jay, Puppy Development Advisor**
05
## **A welcome** from our Chairman
This year, more than any other, I am proud of everyone in the Guide Dogs family who has gone above and beyond to carry on the work of our charity across the UK during a global crisis. To the volunteers, service users, donors and staff who have risen to the countless challenges: thank you.
06 **Guide Dogs** Annual Report & Accounts 2020
**We’ve all experienced difficulties during the Covid-19 pandemic, but imagine the effect that measures such as social distancing have had on the vision impaired community who rely on touch and physical contact. The effort that you have all put in to help maintain support where we can has been outstanding.**
In March 2020, delivering our services via traditional methods became impossible. But knowing that the people we help were even more likely to face isolation as their independence vanished, I was heartened to hear how we, and our service users, overcame difficulty after difficulty.
I’m particularly proud of how we took our habilitation work online, helping children and young people with sight loss to develop practical life skills and confidence to ensure they weren’t left behind. We’ve expanded the support, advice and resources on our website rapidly. We will continue to do so in the future. We created many guide dog partnerships, using popular communications apps to support new owners safely.
At the time of writing, the Covid-19 pandemic was far from over. Many things remained uncertain. But as you will read in these pages, we didn’t sit and wait for the storm
to blow over. Our fundraising performance in 2020 was better than anticipated, thanks to the generosity of our donors, which means we can continue to invest in the future of Guide Dogs to come back stronger, provide even better services and support even more people.
We also welcomed seven new Trustees at our AGM in September, replacing three who retired at that meeting, and those who plan to step down in 2021.
The pandemic may have created many barriers and challenges to the delivery of our By My Side strategy, but in overcoming them we have become a more robust organisation, which will be in a stronger position to expedite the strategy in years to come. Looking forward, with the support of all our Guide Dogs family, we will continue to do everything in our power to fulfil our mission to change the lives of more people with a vision impairment in the UK than ever before.
**James Hambro** Chairman
7 July 2021
A welcome from our Chairman
07
## **A welcome** from our Chief Executive
It’s easy to forget that the start of 2020 was a time of great optimism for all of us in the Guide Dogs family. We were making good progress with our By My Side strategy to provide many more of our life-changing services. We’d implemented new plans, and there was much to look forward to. Then Covid-19 hit us all in mid-March, and sadly Guide Dogs was not immune.
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**We were quick to fight back and find alternative ways to continue helping people with sight loss. Amid constantly changing new guidance, our staff and volunteers helped us achieve things we never thought possible. We tried things we had never considered before – and at a much quicker pace than usual.**
We called our service users and set up tens of thousands of regular keeping-in-touch calls. We moved as much as we possibly could online, including service delivery and fundraising. Virtual delivery of our services for children and young people worked especially well – so much so we’re expanding our scope for this in future.
We also restarted our breeding and training programmes as early as July. I’m delighted to say I experienced this first-hand. The guide dog mum that my family and I care for, Dolly, gave birth to a litter of ten pups in early 2021.
Although we initially furloughed many staff – like many charities we feared the pandemic’s impact on fundraising – we brought the majority of them back as soon as we could and finished 2020 with all our sites back up and running in some form. We’ve been able to maintain this during the 2021 lockdown, with some minor regional variations.
While I’m proud of what we achieved, I’m also aware of the effect that Covid-19 has had on our work as a charity. The 282 new guide dog partnerships we created in 2020 was less than half our normal level. This was due to the temporary pause on our breeding, training and partnership programmes, which we implemented in line with government guidelines.
Despite restarting as many activities as we could from the summer of 2020, including breeding and puppy placement, many other coronavirus restrictions have continued into 2021. It will take time to get fully back to the pre-Covid number of partnerships. However, alongside these setbacks, our advice line service, Guide Line, went live, and other services, such as our online information and advice resources, have gone from strength to strength. We launched our My Time to Play service, which helps children with a vision impairment aged 0-4 develop through play, and we responded to a 25% increase in applications for assistive technology.
Contrary to our fears, and thanks to the innovation and loyalty of our donors, Guide Dogs’ net income totalled £18.2 million in 2020, allowing us to continue investing to increase our capacity
and reduce waiting times for our services, as we aim in the long term to deliver 1,000 new guide dog partnerships every year. We are also investing in staff, continuing to develop and modernise new regional training centres around the country, innovating to expand adult and children’s services, and harnessing digital opportunities through technology.
It has been a privilege to see and be part of everyone pulling together. I want to thank every member of the Guide Dogs family for their hard work. It’s because of this spirit that we are still on course to realise our long-term aspirations to transform many more lives, whether that’s via our well-known core services or through new digital information and advice services. Moving forwards we will be in a stronger position to provide – and improve – the many ways we help people with sight loss to live the life they choose.
**Tom Wright CBE** Chief Executive
7 July 2021
A welcome from our Chief Executive
09
## **Impact of Covid-19** Resilience and response
In early 2020, the spread of Covid-19 and the legislation introduced to keep everyone safe had a major impact on our ability to deliver our services. At the same time, it became obvious that there was never a stronger or more urgent need for our support.
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I am so relieved not to be shielding any longer. I have met only three people in the last year or so, all from Guide Dogs. You have saved my life.”
**Guide Dogs service user**
**As the first lockdown kicked in, people with sight loss faced increased levels of isolation, and maintaining their independence became even more difficult than usual.**
With the introduction of one-way systems in town centres, our service users’ familiarity with their local street layouts disappeared overnight. Shopping for food became difficult for those who simply couldn’t see the socially distanced queue outside their nearest supermarket, let alone find the end of it.
On top of these issues, people who are blind or partially sighted had the added anxiety of having to ask for assistance in public places like shops or on public transport. For the parents of children with a vision impairment, homeschooling brought even more worry and stress as they struggled to adapt generic home-learning materials to meet their child’s needs.
By listening to our service users and the wider vision-impaired community, our staff were able to react quickly to support people with sight loss and innovated to deliver virtual and digital services.
Another area where we and our amazing volunteers had to adapt quickly was finding a way to continue fundraising. With plans for all types of events cancelled and restrictions on gatherings, we adapted by going digital.
In the following pages of this Annual Report & Accounts, you will discover how everyone connected to Guide Dogs – staff, volunteers, service users and donors – stepped up to ensure that we continued helping people with sight loss to live actively and independently in the face of a global pandemic.
Impact of Covid-19 11
## **Impact of Covid-19** How we responded to the crisis in 2020
## **282**
New virtual training methods developed so our Guide Dog Mobility Specialists could continue to match and create **guide dog** . **partnerships** – resulting in **282 partnerships**
Launch of **new advice line service, Guide Line** , staffed by a team of experts who now offer a wide range of advice on the pandemic, services and much more.
Launch of **My Time to Play** , a free service that helps children with sight loss aged under four to develop a broad range of skills through play in a group setting via Zoom.
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## **+25%**
Our technology team for children and young people responded to a **25% increase in applications for assistive technology** , such as iPads and laptops, to support learning at home.
Overall we provided more than a quarter of a million pieces of information and advice to support service users on everything from internet security to shopping through our website or over the phone.
## **250k**
## **+35,000**
More than 35,000 **keeping-in-touch** phone calls made to adult service users – many of them between My Sighted Guide volunteers and their partners.
Impact of Covid-19
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Nell & Branwen **Thriving in a lockdown**
Last year Branwen, a habilitation specialist from Guide Dogs in Wales, supported Nell when she started school. She also continued to support Nell remotely when schools closed – and has helped build her confidence to the point where she is now thriving. Nell’s mum, Rachel, tells the story:
Nell was just 18 months old when we first met Branwen, her habilitation specialist from Guide Dogs. Branwen was so positive and exactly what we needed. She’s just so encouraging about what Nell can do.”
## **Rachel Nell’s mum**
**“Branwen first met Nell when she was just 18 months old, and has been there to support Nell every step of the way since – from teaching cane skills and everyday life skills at home to helping Nell when she started school,” says Rachel.**
Nell’s school hadn’t had a pupil with a vision impairment before, so Branwen’s support was essential. She visited the school and helped staff understand how Nell’s sight condition might impact her learning and how to make adjustments that would help her.
“Branwen kept in touch by phone and provided us with lots of resources so we could continue to develop Nell’s skills at home, including games we could play as a family to help her understand how far two metres is.
“All the skills Nell is learning now to build her confidence and independence will set her up for a bright future. Nell may even go on to become a guide dog owner one day, and if she does, the independence she’s learning now with Branwen will be the springboard for another amazing partnership in her life.”
Branwen also worked with Nell to find ways for her to have as much independence as possible – using simple things like learning how to find her classroom and coat peg, or creating a meeting spot for friends in the playground.
“When the schools closed due to Covid-19, I was naturally worried about the impact on Nell and that she might lose some of the new skills she’s developed, but she’s actually thrived,” says Rachel.
Case study – Nell & Branwen 15
## **Our By My Side strategy**
> **2018** 200,000
In 2018 we supported individuals 200,000 times.
15,000
15,000 of them by providing support face-to-face.
> **2023** 500,000 By 2023 we aim to support individuals 500,000 times a year.
## 23,000
23,000 of them by providing support face-to-face.
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Since we first created our By My Side strategy, we’ve all had to adapt and learn to live with Covid-19. But our goal remains the same – by 2023, we will change more lives than ever before.
Our By My Side strategy
17
## **Maintaining life-changing services**
Our strategy has always been about reaching more people with sight loss through our dogs, our people and by digital and phone.
In 2020 we accelerated this rate of change in response to Covid-19 challenges. This is helping us to lay new foundations that will ultimately help us provide support for more people than ever before.
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## **Innovating through adversity**
2020 was a catalyst for change and new resilience within the Guide Dogs family. We developed virtual training methods so our Guide Dog Mobility Specialists could continue to match and create guide dog partnerships, including using WhatsApp and FaceTime to coach and monitor new guide dog owners from a safe distance.
Where it was safe to do so, our regional teams worked with local transport companies to make use of some of the resources they weren’t using at the time, such as buses, to make sure our dogs didn’t miss out on the public transport element of their training.
During periods of lockdown, our volunteers generously brought most of our dogs into our training centres, so they could continue training sessions locally while comfortably maintaining social distancing measures.
It’s been a year since Rik and I saw each other, but we’ve kept in touch every week by phone. It’s been really important to stay connected. We share stories and talk about all the fun things we’ll do when we can meet up in person again.”
We also recruited 47 new trainee Guide Dog Mobility Specialists and 16 new trainee Guide Dog Trainers. In the future, this will help us speed up training schedules and reduce waiting times.
In 2020 we also reached more people by launching our companion dog service for adults, and relaunching our buddy dog service for children – giving more people the opportunity to enjoy the love and friendship of a well-behaved dog.
**Louise My Sighted Guide volunteer**
As a result of these efforts, despite Guide Dogs taking the difficult decision to temporarily suspend breeding and matching guide dogs with new owners in order to adhere to government guidelines, we still created 282 new guide dog partnerships in 2020.
Our By My Side strategy
19
## **Responding quickly to the needs of adults**
Social distancing restrictions made physical sighted guiding very difficult in 2020, but we were still able to support a total of 1,535 volunteer-led partnerships during 2020, with 516 of these partnerships created during the year. We also gave 446 people friends and family training.
As well as the 35,000 keepingin-touch phone calls we made to our adult service users, our response to the pandemic also included the launch of a new Covid-19 Sight Loss Information Line. This line provided advice to our service users on how to adapt to new restrictions as they emerged. Later in the year, we expanded and relaunched the service as Guide Line, staffed by a team of experts who now offer a wide range of advice on the pandemic, our services and much more.
Alongside our phone services, we expanded the advice available on our website to include information and practical tools on everything from orientation and mobility to helping children learn through play. We also launched a series of webinars on topics like internet security, money management and shopping.
## **Helping more children with sight loss**
Our move towards digital services in 2020 extended the services we provide for children, starting with the pilot for My Time to Play. Led by Guide Dogs habilitation specialists, these are fun and supportive group sessions where children aged 0-4 can develop a broad range of skills through play with other children with a vision impairment. The groups also provide parents with opportunities to network, share experiences and pick up skills and knowledge to support their child’s development with confidence.
Our Education Support Team provided advice to families and schools over the phone, helping to make sure children with sight loss could get their schoolwork in more accessible formats.
Overall we saw a rise in demand for technology from our young service users. Thankfully we were able to react. Our technology team for children and young people responded to a 25% increase in applications for assistive technology, such as iPads and laptops, to support learning at home.
The service was originally designed to be delivered face-toface, but we switched to a virtual programme delivered over Zoom. This was so successful that we have continued to offer My Time to Play virtually, alongside traditional in-person learning as soon as it is safe.
We helped young people with sight loss in many other ways too. Our habilitation specialists – cut off from our service users by social distancing – continued to support families at home via Zoom. Each specialist provided virtual training and fun activities to keep children with a vision impairment busy and learning during lockdown.
The webinars are continuing into 2021, and are available to watch anytime on our website on demand.
20 **Guide Dogs** Annual Report & Accounts 2020
Finding Guide Dogs was like a light of hope. The support and advice they provided us was brilliant. Namit has settled in well at secondary school now.”
**Abha Namit’s mum**
Our By My Side strategy
21
Getting to know Maureen has been lovely. The matching process works, because we both enjoy going out for walks in local parks or visiting natural beauty spots.”
**Yuhui My Sighted Guide volunteer**
## **Working smarter**
By My Side means we’re always looking for new and better ways of working. This extends across everything we do, from the methods we use to raise and train our dogs to the technology our staff and volunteers use to provide support.
In response to Covid-19, in 2020 we embraced change faster than ever and learned that virtual ways of working can offer many benefits and exciting opportunities for the people we support.
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## **Using artificial intelligence**
Thanks to funding from the People’s Postcode Lottery, we were able to develop our first accessible artificial intelligence bot, which provides answers to common questions on our website and via Alexa. Initially, the bot contained only content relevant to guide dog owners, but we are now rapidly expanding the range of information and advice it offers.
## **Transforming guide dog training with technology**
STEP (Standardised Training for Excellent Partnerships) is our process for ensuring that guide dog training is of a consistently high standard across all our teams in the UK. When Covid-19 restrictions were introduced, we adapted quickly by moving to an online, modular training approach for all our dog-focused staff. This meant that they were able to access training wherever they were and progress their learning at their own pace. Due to the great results, we will continue to roll modules out through 2021.
PREP (Puppy Raising for Excellent Partnerships) is a project that goes hand in hand with STEP, helping us to standardise our approach to raising our puppies and provide more dynamic support to our volunteer Puppy Raisers.
Architect’s computer-generated designs showing how the new centres at Leeds (above) and Redbridge (below) could look.
> During 2020 we designed and **Investing in the future** created a suite of online content **of our locations** to support PREP’s delivery. Our puppy development staff are Alongside the development engaging with ongoing training, of our digital services, we’re and the first phase of volunteer also continuing to invest in our content will launch in 2021 via physical locations. Our long-term an online learning platform.
Alongside the development of our digital services, we’re also continuing to invest in our physical locations. Our long-term aim is to create the spaces we need to develop new training methods and deliver new services so we can help more people. It’s essential that we provide the best facilities for future generations of guide dogs.
Our By My Side strategy
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It was only in We want to ensure the dogs
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It was only in my mid-30s that I decided to get in touch with Guide Dogs. It was the best move I could have made. As soon as I got Ralph, I felt for the first time that I could be spontaneous, go out whenever I wanted, and not rely on anyone else.”
We want to ensure the dogs have the room they need to be trained effectively, or to relax when they’re not working. Our premises must also provide the right facilities so staff can deliver first-class skills training, information and support services to people with sight loss.
While the pandemic led to disruption in 2020, our Property Services team continued to make great progress, spending £3.3 million:
## **Richard Guide dog owner**
- We began redeveloping our Bristol site to create a new regional centre. The building was completed in March 2021 and is due to open in July 2021.
- At our Central Office near Reading, we transformed the site’s annexe from traditional office space into a new home for our Reading Community Team. Consolidating two sites into one saves us ongoing rent costs and enables office staff to work alongside our dogs in training. The Reading team began working from the Guide Dogs Reading Hub in January 2021.
- The Exeter Community Team moved to a new, larger site which better suits their needs as our range of services grows.
- We purchased the building where our Leeds team is based, for £1.2 million, to create a new Regional Centre for the North East. This provides muchneeded additional training facilities. We are now planning to develop this site in line with our canine and Skills, Information and Support Services (SISS) guidelines.
- We also took initial steps to create a new Regional Centre for the South East at our Redbridge site. Additionally, we began to move operations from our site in Leamington Spa to the National Centre in the same town. We will progress these projects further in 2021.
In late 2019, we launched our Build the Future appeal to raise £10.0 million towards the target of £30.0 million we need to create four Guide Dogs Regional Centres of the future.
Thanks to generous donations and pledges from our donors and partners, we’re delighted to report this year that our appeal has already raised more than £3.0 million. One highlight of the appeal in 2020 was the purchase of our existing leased centre in Leeds, following a generous contribution from the George W Walsh Seeing-Eye Dog Foundation.
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If you would like to get involved in our Build the Future appeal, please contact us at: **major.relationships@guidedogs. org.uk.**
## **Our fantastic volunteers**
We could not provide our lifechanging services without the remarkable dedication of our volunteers. As of May 2021 we have an amazing community of 14,000 volunteers in 23,700 roles, who give around 4.6 million hours of support each year, or 13.0 million when 24/7 roles are included. But of course, 2020 was far from a typical year. While Covid-19 meant that some of our volunteers’ usual activities were either postponed or couldn’t go ahead, our resilient family either found a way around problems or took up new ways of doing things. Events like quiz nights went online. One fundraising group even held a virtual mountain climb where volunteers’ staircases replaced Mount Everest!
Our amazing volunteers were also flexible and understanding, with many taking on extra responsibilities at short notice to care for our dogs. During lockdown, every one of our dogs in training was cared for in someone’s home rather than in our kennels. We also delivered virtual puppy training classes to help our Puppy Raisers keep their pups engaged and entertained.
## **Investing in research**
As part of our overall approach to innovation, we continue to invest significantly in research that will improve the services we deliver. One of our important investments in 2020 was in our pioneering new research project Born to Guide, which is a long-term study into the complex relationships between a dog’s genes and its health and behaviour.
We’ll be searching for patterns in our dogs’ DNA that are associated with the particular guiding and health characteristics that we look for. We’re aiming to better understand the genetics of certain behavioural traits and complex health conditions, giving us much more precision in the breeding decisions we make. To fulfil this aim we are collecting saliva swabs from 3,000 of our dogs, allowing us to capture their unique genetic data and map this information against their development. This will influence the already rigorous selection process for our breeding programme and produce happier dogs. Ultimately, it will help us produce healthier puppies best suited to life as working guide dogs.
We’re always looking for new ways to give our puppies the best chance of success, and Born to Guide aims to provide new insights into how to breed future generations. Our goal is to raise the percentage of pups who go on to become guide dogs, aligning with the aim in our By My Side strategy to create even more guide dog partnerships in the coming years.
Our By My Side strategy
25
## **Campaigning for change**
When normal life was disrupted last year, our campaigns team adjusted its work rapidly. We have achieved many successes – helping to alleviate the impact of the pandemic on people with sight loss, while also continuing to work on other important ongoing campaigns. Often our achievements were made possible by our fantastic campaigning community, who took over 65,000 actions with Guide Dogs in 2020. From signing petitions to emailing their MPs or sharing our campaigns with their friends, our successes are shared with everyone who took part.
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## **Help with shopping**
Straightaway our team identified that guidelines to keep us all safe while shopping for food were having a negative impact on people with vision impairments. Many struggled to get online delivery slots and found it difficult to socially distance in shops. The team worked with partners in the sector and the government to ensure that people who are blind or partially sighted were given priority access to online delivery slots when needed.
## **Sight loss and social distancing**
We encouraged members of the public and service providers to be aware of the impact of physical distancing measures on the sight loss community through our ‘Be There’ campaign, giving the public practical tips on how they could support people with sight loss when out and about during the pandemic. We placed the voices of our service users at the centre of the message and secured strong broadcast and print coverage. We also earned support for our campaign from the Scottish government, local authorities and public transport operators.
## **Support for the vaccination programme**
## **Brexit and travel**
Brexit was another hot topic that was complicated by Covid-19. The campaigns team asked the government for clarity on whether guide dog owners would have to take extra steps when travelling to the EU once the UK’s transition period ended on 31 December 2020. The team is continuing to seek clarity in 2021, particularly with travel restrictions due to Covid-19 potentially being lifted.
With the roll-out of the UK’s Covid-19 vaccination programme from early December 2020, the team also worked with other sight loss charities to produce guidance for staff and centres administering jabs. We’ve helped to make sure the process is accessible for people with sight loss.
Our By My Side strategy
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## **Tackling pavement parking**
Parked cars blocking pavements is one of the most common hazards preventing people with sight loss from getting out and about safely. Following sustained campaigning by Guide Dogs, in 2020 the UK government committed to act and consulted the public on different options to tackle the issue. The government’s response to the consultation is due to be published in 2021. We’ve also spearheaded separate campaigns in Scotland and Wales, where plans are more advanced to lay out new powers for local authorities to target hot spots and issue fines to people who park on pavements.
## **Support for children and young people**
In Northern Ireland, 2020 saw the culmination of many years’ hard work developing close working relationships with colleagues within education and health. This included developing evidence-based models of good practice and collaborative working, such as Time to Play. Both the Education Authority and the Health and Social Care Board have recognised the cross-departmental nature of this work and have each agreed funding to support a comprehensive habilitation service throughout Northern Ireland. This is a great outcome for children and young people living with a vision impairment in Northern Ireland.
In 2020 we also looked at issues impacting children and young people across the UK. Ahead of the return to school in September, we launched a petition calling for consideration to be given to the needs of children and young people with a visual impairment who might struggle with social distancing. We were pleased to discuss this with the Education Minister in the autumn. We also hosted a virtual round table where our service users and their families had the opportunity to talk about the challenges they face and gain support from the many MPs who attended.
28 **Guide Dogs** Annual Report & Accounts 2020
## **Creating new governmentendorsed guidelines in Northern Ireland**
Working closely with RNIB Northern Ireland, in 2020 we developed a number of dualbranded guidance documents to support people living with a vision impairment, and also for external staff and agencies providing much-valued help and support. We secured endorsement from the Department of Health, the Department for Communities, the Health and Social Care and the Public Health Agency. These agencies all promoted the documents through their official distribution and communication channels.
We also developed a Coronavirus Courtesy Code and Temporary Transport Briefing paper, which we discussed with the Minister for Infrastructure. This helped to ensure the views of people with sight loss were considered when local road layouts were temporarily changed to introduce one-way systems for pedestrians.
## **Spreading our message across the UK**
It is more important than ever that we keep our brand top of mind to drive public recognition and support for our cause. In 2020 we refreshed our brand to make it more engaging and to reach a wider audience.
Image shows guide dog owners speaking to MPs and Peers at our April virtual parliamentary event.
Having Guide Dogs on our side was really fortunate. We were so lucky. Their support didn’t cost us anything, and their people are so genuine and really want to help you.”
We are now able to reach new, younger audiences for fundraising and volunteering, and raise awareness of the breadth of our services.
Thanks to our continued demonstration of impact and the strength of our brand, we have seen awareness scores for our children’s services double between 2019 and the start of 2021, and we have managed to drive both awareness and positive conversations about Guide Dogs to new highs.
## **Mohit Namit’s dad**
Our By My Side strategy
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## **Fundraising in a pandemic**
The introduction of lockdowns in 2020 devastated our fundraising plans, many of which were based on face-to-face events. But we were astonished by the innovation of our fundraising volunteers and the loyalty of our donors. We are very grateful for your tenacity and continued support.
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## **Going virtual**
The big change this year was that our fundraisers went online to find new ways to generate income. There was our Great Guide Dogs Virtual Tea Party at the end of April, where we set the Guinness World Record for the world’s largest virtual tea party. We also held a Virtual Dog Show over the summer, and our third annual Christmas Wishes concert included streamed pre-recorded performances from the likes of Alexandra Burke, Classical Reflection and Jonathan Antoine.
Our volunteers were inspirational, with regular group and area meetings and a Facebook group to share new fundraising ideas for lockdown. Their willingness to embrace new technology and determination to adapt to the challenging environment was hugely appreciated.
September saw us launch our new dog training product Good Dog!, where subscribers pay to receive monthly emails, training videos, and seasonal packs with top tips, gifts and expert advice to enrich their dog’s life.
Walk Your Socks Off, our sponsored step challenge, went virtual, encouraging people to walk an ambitious number of steps every day for a week (within government guidelines).
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In 2020 we also gave our Dogalogue online shop a makeover and a new name. The new Guide Dogs Shop launched in early September with new products, including a Guide Dogs branded range of clothing and face coverings.
## **Invaluable support from our partners and donors**
We want to say a big thank you for the ongoing support from all our organisational partners and donors. In 2020 we had significant support from players of People’s Postcode Lottery for the third year, working with Citi as their London Charity Partner, and continued long-term support from Royal Canin and Pets At Home. We also received a very generous contribution from the George W Walsh Seeing-Eye Dog Foundation.
In 2020, thanks to the generosity and loyalty of our donors, we had remarkably strong appeal and raffle income. Our Lucky Lottery and Sponsor A Puppy products performed well, with donors maintaining their support. We are continuing to diversify our fundraising, and will be launching more online initiatives, following the success of our virtual events in 2020.
32 **Guide Dogs** Annual Report & Accounts 2020
## **Investing in coming back stronger**
Every day, 250 more people join the two million in the UK already living with sight loss. This number is set to double to four million by 2050. Thanks to the generosity of our donors, we can continue to invest in the future of Guide Dogs to come back stronger, provide even better services and support even more people.
Our challenge is that we’re currently only reaching a fraction of those with a vision impairment. That’s why, as part of our By My Side strategy taking us to 2023, we are determined to double the amount of support we provide. With new services, new technologies and our amazing staff, volunteers, dogs and supporters, we will change more lives than ever before.
We know how vital technology is for children with vision impairments. It’s not only important for a child’s education – it also helps develop life skills, confidence and independence. In 2021, we are trialling a new service to provide children who are blind or partially sighted in the UK with an iPad or iPhone to use outside of school. This technology will support learning at home as well as having fun and exploring interests and activities. We’ll also give every child guidance and resources to ensure they can get the most from their device.
## **We’re also**
Growing our specialist workforce so we can reduce the wait for a guide dog, which we estimate has been extended by between six to ten months as a result of Covid-19.
Developing new approaches to recruiting, training and retaining our specialist staff.
Continuing our Born to Guide research project to understand the part that genetics plays in breeding healthy, happy guide dogs.
Investing in our buildings and working with our generous corporate partners to help fund the redevelopment of our regional sites. We are fully focused on creating the perfect facilities to train our dogs better – and to provide a wider range of services that will benefit more people with sight loss.
Our By My Side strategy
33
## Terry & Spencer **Getting the old Terry back**
**Guide Dogs** Annual Report & Accounts 2020
34
Terry, from Baildon in Yorkshire, has a sight condition called diabetic retinopathy. He was matched with his first guide dog, Spencer, just before Covid-19 hit – but with our support, he still managed to train and qualify by September. He says it’s given him an amazing sense of freedom.
The life Spencer gives me is freeing, liberating and magical. With Spencer guiding me I can hold my head up high and look forward instead of down at my feet. He makes me feel so safe.”
## **Terry Guide dog owner**
**“Even though my eyesight deteriorated over a number of years, I never thought it would get to the point where it caused a problem.**
“I tried to hide it a lot at first, but I would trip up when I was out or walk into things. I felt clumsy and vulnerable using a cane, and it made me feel different from everyone else.
“I started spending a lot of time on my own at home. I thought that my sight loss meant I couldn’t do any of the things that I enjoy doing.
“But I began to learn different techniques and strategies and started to realise that losing your sight doesn’t mean losing your life. As I got a bit more confidence, I decided to apply for a guide dog. It was the best decision I’ve ever made.
“I was matched with Spencer, my knight in shining black armour, just as the country went into lockdown. It meant our training couldn’t happen in the traditional way, but Guide Dogs pulled out all the stops for me.
“I could keep Spencer at home, and Peter, my Guide Dog Mobility Specialist, phoned daily to see how we were getting on. He talked me through various training and obedience techniques we could do, like taking Spencer out on the lead with my partner. This meant Spencer could get familiar with my local routes. The time at home also helped us build a really close bond.
“We were finally able to start training in August and qualified in September 2020, and I haven’t looked back since. Now, with Spencer by my side, we go out every day. My partner says it’s like having the old Terry back. I feel so free and alive!”
Case study – Terry & Spencer
35
## **Sustainability and Guide Dogs**
## **Carbon report**
## **Energy saving**
We are reporting our carbon footprint for the first time in 2020, as required under the new regulation SECR (Streamlined Energy and Carbon Reporting). We will be looking at the period 1 January 2020–31 December 2020 and comparing this against 2019, our baseline year. All information is prepared using 2019/2020 UK government environmental reporting guidelines and GHG Conversion Factors.
We are reporting on the emissions that come under our direct operational and financial control. The indirect emissions from leasehold sites are included when consumption data is available. We have calculated the t/CO2e per full-time employee as our intensity ratio, as it will best reflect changes in our energy consumption.
Behaviour change is at the heart of our energy efficiency strategy. We want everyone to understand their responsibility and make positive changes to help us reach our savings targets.
In 2020 we published a quarterly regional sustainability report which provides detailed information on the energy we use. This enabled our Regional Teams to understand the impact of their regions and to monitor their own progress.
During the year we looked at opportunities to introduce renewable technologies, and as part of the refurbishment of our Bristol site we are installing photovoltaic solar panels on the roof.
We introduced a carbon challenge in the summer to reduce the fuel we purchased for our company vehicles by 40% compared to 2019.
This took advantage of the enforced reduction in travel imposed on us all and gave us a carbon saving of 629 t/CO2 Overall, we saw a reduction in carbon emissions from our buildings of 273 t/CO2e compared to 2019.
There is no doubt 2020 was a unique year, but we are keen to ensure that some of the new ways of working we introduced will become business as usual as we move out of lockdown.
273t/ CO e 2
The reduction in carbon emissions from our buildings compared to 2019.
36 **Guide Dogs** Annual Report & Accounts 2020
## **Guide Dogs SECR carbon summary**
|**Type of emissions**|**Activity**
Gas
Biomass
Gasoil
(direct billed)
Gasoil
(indirect billed)
Fuel purchased
(allocated/pool vehicles)
Electricity
(direct billed)
Electricity
(indirect billed)
Grey fleet
Hire car
Total
Intensity ratio
Average number
of employees
t/CO2e per employee|**2020**
**kWh**
**t/CO2e**
3,092,443
568.6
548,780
8.5
536,008
137.6
42,142
10.8
3,463,917
875.1
1,856,250
432.8
40,175
9.4
743,789
173.7
155,342
37.2
10,478,846
2,253.7
–
–
–
1,442
–
1.56|**2019**|
|---|---|---|---|
||||**kWh**
**t/CO2e**|
|**Scope 1**|||3,681,550
676.9
1,110,939
17.4
247,053
63.4
64,905
16.7
6,153,889
1,504.6|
|**Scope 2**|||2,337,472
597.5|
|**Scope 2**|||121,670
31.1|
|**Scope 3**|||2,194,835
522.1|
|**Scope 3**|||392,309
93.0|
||||16,304,622
3,522.7|
||||–
–|
||||–
1,384|
||||–
2.55|
Sustainability and Guide Dogs 37
## **Financial performance**
**The overwhelming and dedicated financial support from our donors throughout a difficult year has provided a sustainable income stream in 2020.**
In 2020 net income (total income less expenditure) totalled £18.2 million (2019: £14.0 million). Net movement in funds was £17.3 million (2019: £13.0 million).
This income has resulted in reserves growing, which will continue to fund significant investment in infrastructure, including buildings and technology, as well as staff in line with our five-year plan and strategy. Additionally we intend to invest in innovation projects to expand adult and children’s services, harnessing digital opportunities through technology.
Covid-19 disrupted our strategic plan and significantly impacted the training and qualification of technical staff. We are planning to take strong remedial action to make a quantum leap in the numbers of qualified canine staff under a project called Academy; £5.0 million has been included in designated funds for this project.
**Guide Dogs** Annual Report & Accounts 2020
38
## **Covid-19**
Covid-19 impacted our ability to provide our life-changing services as we adhered to the control measures introduced by the government. As noted earlier on page 10, our focus was to (i) deliver our charitable objectives, (ii) ensure the wellbeing and safety of staff, volunteers and service users, (iii) ensure the welfare of our dogs. Services were partially reinstated and gradually reintroduced with safe working practices in place. During this period we adapted to using technology to continue to provide services online where possible.
In response to concerns about the financial impact of Covid-19 and government guidance which prevented the delivery of many of our services and normal operations, we took the decision to furlough a substantial number of our staff early in 2020, using the government furlough scheme. We brought the majority of them back as soon as we could and finished 2020 with all our sites back up and running in some form. Owing to the fixed nature of our cost base, minor operating expenditure reductions have occurred in the areas of staff travel and expenses, while capital expenditure was deferred at the start of the pandemic to manage cash flow.
During the pandemic Guide Dogs actively managed costs and closely monitored its finances, including cash flow management, review of investments and securing the use of a Revolving Credit Facility. Thankfully we did not need to use the credit facility as our donors continued to support us.
## **Going concern**
The Trustees have considered several factors when forming their conclusions as to whether the use of the going concern basis is appropriate when preparing these financial statements. These factors include liquidity, cash resources, liabilities and demand for services.
Every organisation needs to consider whether they are a going concern. The Trustees have continued to assess the charity’s ability to continue as a going concern in light of the financial impacts of Covid-19. Cash resources have been purposely built up to fund much-needed investment in facilities and technology. Strong donor support throughout 2020, the impact of lockdowns and social distancing, and deferral of investment activities have resulted in these strengthening further in 2020.
However, the future impacts of Covid-19 on the economy are still uncertain.
After assessing the impact of possible income reduction scenarios as part of our five-year planning activities, the Trustees have concluded that the charity has a reasonable expectation that there are adequate resources to continue to operate for at least twelve months from the date of signing of the financial statements, and have continued to prepare the financial statements on a going concern basis.
## **Income**
## **Income in 2020 totalled £125.9 million (2019: £122.2 million). The major elements of our income are as follows:**
Donor-based income includes all types of income that are made on a voluntary basis. Donations totalled £52.5 million in 2020 (2019: £49.1 million). This includes our Sponsor a Puppy product and cash appeals. The increase of £3.4 million (7%) reflects the importance donors place on continuing to support our lifechanging services throughout the Covid-19 pandemic.
Legacy income in 2020 totalled £48.3 million (2019: £48.1 million), and legacy notifications increased by 6% in 2020.
Community fundraising income in 2020 totalled £4.3 million (2019: £8.2 million). The reduction was driven entirely by the impact of Covid-19. However, it was mitigated by our resourceful volunteers who identified many virtual opportunities to engage and keep in contact with donors.
Other income in 2020 totalled £18.0 million (2019: 14.0 million). This includes income from Charitable Activities, Other Trading Activities, and Investments. The increase of £4.0 million is principally furlough monies received from the UK government. The raffle and lotteries were boosted by our amazing donors’ support for life-changing services throughout the pandemic.
Financial performance 39
## **Expenditure**
Expenditure in 2020 totalled £111.9 million (2019: £113.4 million). The reduction of £1.5 million results primarily from reduced expenditure on raising funds.
Support costs amount to £18.4 million (2019: £16.2 million). The increase in support costs is a result of higher Information Technology costs driven by the charity-wide technology refresh, plus increased demand for laptops as staff worked from home where possible.
## **Costs of raising funds**
Expenditure in 2020 totalled £35.9 million (2019: £37.7 million), and includes £29.1 million (2019: £31.7 million) relating to the raising of donations and legacies. Allocated support costs were £2.9 million (2019: £2.7 million). The reduction of total expenditure of £1.8 million (5%) is a result of fewer community fundraising events and activities being placed on hold owing to Covid-19.
## **Costs of providing guide dog services**
Expenditure in 2020 totalled £51.3 million (2019: £51.8 million). Allocated support costs were £10.7 million (2019: £9.5 million). Direct costs have reduced by £1.7 million owing to the impact of lockdowns on front-line services, as face-to-face activities and dog training were substantially reduced to protect service users and staff.
## **Costs of providing other adult services**
Expenditure in 2020 totalled £8.7 million (2019: £8.0 million). Allocated support costs were £2.3 million (2019: £1.9 million). Owing to the expansion in staff numbers for adult mobility services, and the allocation of support costs based on headcount, a higher percentage of support costs have been allocated to this area in 2020.
## **Net gains and losses on investment assets**
Our investment portfolio generated net capital gains of £4.2 million (2019: £5.2 million).
## **Other recognised gains and losses**
Other actuarial losses arose from the defined benefit pension scheme. Net actuarial losses of £0.9 million (2019: £1.0 million) were recognised. These arose from a significant reduction in corporate bond yields, an increase in the CPI assumption following a change in methodology and updates to the mortality assumptions, partially offset by an experience gain as a result of allowing for the 31 December 2019 actuarial valuation and higher than expected asset returns.
## **Funds**
Funds increased by £17.3 million (2019: £13.0 million), to £153.4 million, (2019: £136.1 million). These funds comprise three elements: unrestricted funds, restricted funds and endowment funds.
Each of these categories is described as follows:
## **Unrestricted funds**
Unrestricted funds are those funds that we can use for any activity that meets our charitable objectives. At the end of 2020 unrestricted funds amounted to £150.2 million (2019: £132.4 million).
Unrestricted funds comprise of two types of reserves: general and designated funds.
## **General funds**
At the end of 2020 general funds amounted to £85.4 million (2019: £84.1 million), including £2.7 million (2019: £2.7 million) fixed assets revaluation reserves.
## **Designated funds**
These are funds that have been designated for specific purposes by the Board of Trustees. At the end of 2020 there were three designated funds: (1) The fixed assets fund representing the historical cost net of depreciation of tangible assets such as property, plant and equipment, £33.5 million (2019: £31.7 million);
40 **Guide Dogs** Annual Report & Accounts 2020
(2) People’s Postcode Lottery (PPL) fund representing funds allocated to, but not restricted to, activity agreed with the PPL, £1.3 million (2019: £1.6 million); (3) Strategic development of the By My Side strategy & Innovation Programme £30.0 million (2019: £15.0 million).
## **Restricted funds**
These are unexpended funds that have been donated to Guide Dogs with specific conditions attached to their use. As at 31 December 2020 these funds totalled £2.7 million (2019: £3.2 million). The majority of these funds originated from the government’s LIBOR fund, and will be spent over the next five years in providing guide dogs to veterans of the armed forces with vision impairments.
## **Endowment funds**
These are funds that have been donated subject to the condition that the capital must remain unspent, in perpetuity. Income from the investment of these funds may be used for unrestricted purposes. As of 31 December 2020 these funds totalled £0.5 million (2019: £0.5 million).
## **Financial reserves policy**
Our financial reserves policy seeks to ensure that reserves are maintained at a level that enables the Guide Dogs Group (‘the Group’) to manage financial risk and short-term income volatility, allowing us to sustain optimal levels of service over the long term, while ensuring that financial commitments can be met as they are due. Holding reserves also allows us to implement new strategic priorities and to invest in new opportunities that help us to achieve our goals.
Our reserves policy takes into consideration the nature of our most costly activity, the guide dog service, which requires us to commit expenditure over the medium to long term, while also recognising that, as we are a fundraising charity, we are subject to the effects of shortterm volatility in income. We therefore hold funds in reserve to ensure that we can meet our service delivery plans in the face of such fluctuations. We use a rolling five-year plan to model how we will fund the delivery of our strategy and ensure reserves remain at an appropriate level. Reserve thresholds are reviewed on a three-year cycle; the next review will take place in 2021.
Cash resources, defined as investments and cash, are the most important part of our reserves policy. Our financial reserves policy mandates that the Group holds a minimum level of cash resources to ensure that we can discharge our financial commitments as they fall due over the course of the five-year plan. The Board of Trustees (the ‘Board’) has agreed that the Group should aim to maintain cash resources above £35.0 million. This level is determined by considering the need to provide short-term protection against downward fluctuations in annual income or capital receipts, such as legacies; the need to protect the charity from investment risk; the need to support medium strategic investment; and to provide a financial cushion in the event of extreme circumstances affecting the charity’s ability to operate. This level was reviewed and deemed to still be appropriate.
We have no wish to hold excessive cash resources; funds are donated to provide support to people with a vision impairment, not to hold in reserve. The Board therefore closely monitors current and projected levels of cash resources and amends its fundraising or service delivery plans if levels become, or are expected to become, too high. The impact of Covid-19 has not changed this approach, and although investment plans were initially put on hold at the start of Covid-19, the implementation of the property strategy has restarted.
Financial performance
41
## **At 31 December 2020, cash resources stood at £46.1 million (2019: £49.5 million), made up as follows:**
|Investments
Cash at bank and in hand
Less restricted funds
Less endowment funds
Less People’s Postcode Lottery designated funds
Less strategic and innovation designated funds
**Net cash resources**|**2020**
**£m**
66.7
13.9
(2.7)
(0.5)
(1.3)
(30.0)
**46.1**|2019
£m
63.3
6.5
(3.2)
(0.5)
(1.6)
(15.0)|
|---|---|---|
|||**49.5**|
Cash resources at the year end were above the approved threshold. Guide Dogs embarked on our By My Side strategy in 2018, which requires significant investment over the next five years. The increase in cash resources will partly fund the Build the Future capital appeal forecasted at £30.0 million, which was launched in 2019 to fund the modernising of old and dilapidated training sites, such as Redbridge, and to move operations from Leamington Spa. Some of these buildings date back to the Second World War and are not fit for our future services, including having no indoor training facilities, which are fundamental to our STEP training methodologies. An additional £15.0 million has been designated in 2020, increasing funds designated for strategic capital programmes and strategic innovation to £30.0 million.
## **Tangible fixed assets**
The movements in tangible fixed assets during the year are summarised in Note 5 to the financial statements. Capital expenditure of £4.7 million (2019: £2.3 million) has been incurred refurbishing property and replacing Information Technology infrastructure.
## **Investment policy**
Our investment policy is:
- To protect the value of our investments while seeking an appropriate return.
- Not to invest directly in any company with a significant interest in any activity that runs contrary to Guide Dogs’ charitable objectives and mission.
We consider this to be a prudent policy that challenges managers to produce excellent results.
The investment portfolio is managed on an unconstrained basis in two segments by CCLA Investment Management Limited and Newton Investment Management, controlled by Guide Dogs’ Financial Reporting and Investment Committee. We selected two managers for their contrasting styles, in order to diversify overall risk.
Our Financial Reporting and Investment Committee reviews their performance against target on a quarterly basis, and against the performance of comparable funds approximately annually.
At the beginning of the year investments were valued at £63.3 million. The portfolio was valued at £66.7 million at the end of the year, with gains of £4.2 million.
42 **Guide Dogs** Annual Report & Accounts 2020
## **Guide Dogs’ pension schemes**
We operate two funded pension schemes for our staff: a defined benefit and a defined contribution scheme.
We closed the defined benefit scheme to new entrants on 31 March 2011, and to future accrual on 31 December 2012. A valuation of this scheme for accounting purposes, under FRS 102, as of 31 December 2020 showed no deficit (2019: no deficit).
The latest completed full actuarial valuation of the scheme was at 31 December 2019. This showed a surplus of £1.3 million calculated on a technical funding basis. A discretionary annual payment of £1.0 million was made in 2020 (2019: £1.0 million). As the scheme is in surplus, there is no need for a deficit recovery plan. We are working with the scheme’s trustees to manage and reduce the financial risks inherent in the scheme’s funding arrangements.
At 31 December 2020 the defined benefit pension scheme was fully funded on a technical basis with a funding percentage of 102.4%.
The defined contribution scheme has existed since 1 April 2011, and during 2013 also became the vehicle for the auto-enrolment offering to staff.
## **Risk management and internal control**
reserved for its approval. During Covid-19, the Board increased the number of meetings to focus on both the short term and longerterm risks, including the associated actions.
The Board has an agreed risk framework to manage the risk the Charity faces. The Audit and Risk Committee has delegated authority to satisfy itself that there are effective systems to manage these risks.
- There is a clear organisational structure with appropriate levels of accountability and reporting lines. The Board approves the delegation of financial authority to the Chief Executive.
The Audit and Risk Committee meets four times a year to assess the effectiveness of controls to mitigate risk and report the outcome of this review to the Board.
The Risk Management framework documents the governance structure and the flow of information. We are satisfied that the arrangements for managing these risks, combined with the continual review of internal controls and the reserves policy, will ensure that sufficient resources are available to maintain services for the foreseeable future while managing stakeholder, safeguarding, reputational and financial risks.
- An outsourced internal audit function, directed by the Audit and Risk Committee, undertakes a rolling review of the design and operational effectiveness of controls over activities, based on the risks inherent in those activities.
- The risk management framework is used to identify and assess new and current major business risks. We prioritise them in terms of impact and probability of occurrence and then identify and implement efficient controls to manage them and monitor their effect.
The Board regularly monitors performance against the objectives set out in the five-year business plan. This includes management of significant risks.
- The Corporate Risk Group, comprised of senior leaders across Guide Dogs, looks at all aspects of risk across the organisation. The Group is responsible for monitoring and mitigating risk and reporting on it.
Key elements of our control systems include the following:
- The Board meets at least four times a year. A number of matters are specifically
Financial performance
43
## **Monitoring risks**
Throughout 2020 and into 2021 we continue to monitor significant risks, including:
|**Risk**
Statutory or regulatory
requirements and/or obligations
are not met.
Safeguarding risks relating to
our work with young people and
vulnerable adults.
The ability to recruit and
retain qualified skilled staff
and volunteers.
The ability of the organisation’s
resources to be able to deliver
the five-year strategy.
Significant event means core
services cannot be delivered.
Guide Dogs lose the goodwill
of those people that support us,
donors, volunteers and other
significant stakeholders.
Guide Dogs is exposed to issues
of cybersecurity – malware,
ransomware and phishing scams
– with the risk of reputational
harm or financial penalties.|**Mitigation**|
|---|---|
||Compliance is managed by experts, supported by an external Internal
Audit function, in core areas such as health and safety, safeguarding,
data protection and gambling commission as well as a central compliance
function to co-ordinate training, legal and regulatory requirements.|
||The central safeguarding team has robust processes, training at
various levels to match service delivery need and carries out the
relevant disclosure checks on all people in roles working with children
or vulnerable adults. There is a whistleblowing process for staff
and volunteers to raise concerns, records kept and data reviewed
and reported on to ensure Guide Dogs remains a safe place for all.
Safeguarding is considered part of everyone’s role.|
||The employee and volunteer proposition is regularly reviewed and
adjusted if necessary to ensure that Guide Dogs is an attractive place
to work. Executive search and selection is used to engage Trustees
with relevant skills.|
||The financial resources are reviewed from both a long and short-term
perspective. This includes cash flows, budget and five-year plans and
management accounts, which are reviewed by the Executive Directors
and the Trustees. People resources are managed through workforce
planning, which ensures we have identified the roles required and are
set up to deliver them. The approach to canine and people associated
resources has been updated to focus on product flow (dogs) and supply
chain management.|
||Guide Dogs has full business continuity plans for all core processes,
IS systems, business functions, facilities and buildings. These are
reviewed annually or when the need arises following an incident, such
as a pandemic.|
||Brand and reputation are monitored via a number of functions, such
as public perception, customer complaints, insight groups, and our
campaigns and products are grounded on comprehensive research
and in line with our charitable purpose.
A reserves policy is in place which outlines why we hold reserves and the
trigger levels. Additionally, it documents why higher levels may be held
to meet future investment plans.|
||Guide Dogs has robust IS security processes in place, software,
password requirements, restricted use and training for users, along
with an external audit to make improvements in line with changes in
the technological world.|
44 **Guide Dogs** Annual Report & Accounts 2020
## **Fundraising responsibly**
We rely on donations to keep our life-changing services running. We have policies and controls in place to ensure we raise money in a considerate and responsible way. We are registered with the Fundraising Regulator and follow their code of practice. This means:
- We are transparent about how we raise funds.
- We treat donors and supporters respectfully and fairly.
- We explain clearly how to opt out of receiving fundraising communications.
- We adhere to data protection laws and explain clearly how we use, store and secure personal details.
- We work with third-party suppliers who ensure the provision of door-to-door and private site face-to-face donor acquisition, as well as some tele-fundraising activity.
- All third-party supplier contracts are approved by Procurement and Legal to ensure compliance with Participator and Third-party requirements under the fundraising Code of Practice.
- We ensure that any volunteer, third party or professional agency who fundraises on our behalf has had proper training and adheres to our standards and procedures.
- We monitor the work of all third-party fundraisers by carrying out mystery shopping visits, observations, shadowing, quality calls and by listening to telephone calls to make sure they meet our quality standards. We record all our inbound and outbound fundraising calls for quality and training purposes.
- Guide Dogs has Chartered Institute of Fundraising Accreditation status that requires an annual assessment of our fundraising practices to ensure responsible fundraising practice.
- We take all reasonable steps to protect vulnerable people from persistent requests to donate. Any staff member or third-party agency who contacts supporters receives regular training on how they should address and deal with vulnerable people. Our safeguarding team takes follow-up action on any calls that raise concern.
- Guide Dogs supports Dementia Friends and incorporates its guidance in our training, which helps our staff and third-party fundraisers to understand dementia and how it may affect a person.
- We have robust procedures in place for handling complaints. We respond quickly and efficiently to resolve any complaints we receive about our fundraising.
In 2020 we received 127 complaints (2019: 304), which represents a fall of 58% compared to 2019.
- In 2020, 88% (2019: 86%) of the total proceeds from Guide Dogs Lucky Lottery were applied for the unrestricted purposes of the charity, with its core objective to promote the health, equality and independence of blind and partially sighted people. The remaining 12% (2019: 14%) of the total proceeds covers prizes and the administrative costs of running the lottery.
- In 2020, 67% (2019: 60%) of the total proceeds from Guide Dogs’ Raffles were applied for the unrestricted purposes of the charity, whose core objective is to promote the health, equality and independence of blind and partially sighted people. The remaining 33% (2019: 40%) of the total proceeds covers prizes and the administrative costs of running the Raffle.
- Guide Dogs also ran a Lottery draw in collaboration with People’s Postcode Lottery in 2020, of which 32% (2019: 39%) of the proceeds were applied for the unrestricted purposes.
Financial performance
45
## **Structuring and managing Guide Dogs**
## **The Board of Trustees**
The members of the Board of Trustees (the ‘Board’) of The Guide Dogs for the Blind Association (Guide Dogs) who are both Directors of the company and Trustees of the charity during 2020 and as of 7 July 2021, except as noted below, were:
**James D Hambro** Chairman
**Mark A T Johnstone** BA (Hons) FCA Appointed on 15 September 2020
**Patricia M Stafford** BA (Hons) Vice Chairman Retired on 15 September 2020
**David B Anderson** BVMS, MVM, MRCVS Retired on 15 September 2020
**Dr Michael L Nussbaum** BSc, PhD, Honorary Doctor of the Open University
**Michael Olaye** Appointed on 15 September 2020
**Polly A Shute**
**Amanda H Ariss** BA (Hons), MA (Dist)
**Ranjit Sondhi**
**David J Bagley** FCA, CF Retired on 15 September 2020
**Paul W Baker** MBA Appointed on 15 September 2020
**Jennelle L Tilling** BBus/BA Appointed on 15 September 2020
**Emma J West** BA (Hons) Appointed on 15 September 2020
**Clare E Black** BSc (Hons)
**Polly A Williams** FCA, BA (Hons)
**Catherine M Crofts** BSc, CIM, CAM
**John D Wrighthouse** BSc (Hons), MA, FCIPD
**Lynne V Hill** MVB, MBA, MRCVS Appointed on 15 September 2020
**Michael J Wroe** BSc (Joint Hons), FCA Appointed on 15 September 2020
**Robert M Deakin** BA (Hons) (CEng), FIET
Dr Michael Nussbaum is a guide dog owner. Catherine Crofts is waiting for a replacement guide dog.
**Guide Dogs** Annual Report & Accounts 2020
46
## **Election of Trustees**
The Trustees are reappointed by the members of Guide Dogs at the Annual General Meeting or appointed by the Board to fill any vacancies arising during the year. Recruitment takes place through a sub-committee of the Board with clear terms of reference. Trustees require candidates to provide the Board with a full range of relevant skills relating to the business of the charity. Trustees actively seek diverse applications, particularly from people with a vision impairment.
Trustees serve a three-year term of office before retiring and are eligible to stand for re-election for a maximum of two further three-year terms of office, which is subject to performance. Exceptionally, a fourth and final term may be served if there is a specific need, agreed by the Board.
All new Trustees have personalised induction programmes. These cover the main aspects of the charity, including our finances and our future plans and objectives. They are encouraged to visit one of our Guide Dog Training Schools and other local teams. They must also attend a staff and volunteer induction workshop, covering safeguarding and other topics.
## **Governance**
Trustees have overall responsibility for Guide Dogs’ activities and are advised by the Chief Executive and the Executive Directors. The Trustees have established four committees:
The Audit and Risk Committee: Mark Johnstone succeeded Polly Williams as Chairman on 22 September 2020; Clare Black, Trustee, resigned from the Committee on 22 September 2020 and was succeeded by Robert Deakin, Trustee; Lynne Hill, Trustee, joined the Committee on 22 September 2020; and Elaine Carr and Nicholas Coleman remained as independent members.
The Investment Committee, chaired by Bruce Gordon, expanded into the Finance Reporting & Investment Committee on 17 November 2020 when Bruce Gordon retired as Independent Chairman; David Bagley retired from the Investment Committee on 15 September 2020. The Finance Reporting & Investment Committee comprised: Polly Williams, Chairman – appointed chair 17 November 2020; Clare Black, Trustee; Michael Wroe, Trustee – appointed on 1 January 2021; and Robert Barnard-Smith and Michael Hughes remained as independent members of this Committee.
The Remuneration Committee comprised the following Trustees, chaired by John Wrighthouse, who succeeded Patricia Stafford on 15 September 2020 when she retired from the Board: Amanda Ariss, Michael Nussbaum; Ranjit Sondhi – appointed on 20 October
2020; Emma West – appointed on 20 October 2020; Jennelle Tilling – appointed on 28 January 2021; and James Hambro as an ex officio member.
The Nominations Committee comprised the following Trustees: James Hambro (Chairman) Chairman of the Board; Patricia Stafford, Deputy Chairman of the Board and Chairman of the Remuneration Committee and GDBA (Trading Company) Limited until she resigned from the Board on 15 September 2020; Clare Black, Chairman of Blind Children UK; Mark Johnstone, Chairman of the Audit and Risk Committee – appointed on 17 February 2021; Polly Williams, formerly Chairman of the Audit and Risk Committee and currently Chairman of the Finance Reporting & Investment Committee; John Wrighthouse, Chairman of the Remuneration Committee and Trustee with HR experience; and Michael Wroe, Chairman of GDBA (Trading Company) Limited – appointed on 17 February 2021.
The policy framework sets out terms of reference for the committees and the Board receives regular reports of their activities. The Board has a clear policy and procedures for dealing with conflicts of interest in accordance with the Charity Commission guidelines.
All Trustees have adopted The Charity Governance Code and are committed to meeting its principles. Trustees and independent committee members do not receive any remuneration for their services to Guide Dogs.
Structuring and managing Guide Dogs
47
## **s172 statement**
Section 172 of the Companies Act 2006 requires Trustees to promote the success of the charity for the benefit of its stakeholders as a whole, and this includes anyone affected by sight loss, their families, our employees and volunteers, our sponsors and donors, our suppliers, the wider community and the environment. Acting in good faith and fairly, the Trustees consider what is most likely to promote success for its stakeholders and the charity in the long term.
With the development and introduction of the By My Side strategy in 2018, the Trustees undertook extensive engagement with the sight loss community. This has enabled Guide Dogs to expand not just our core dog services but specialist services that provide vital support for young people, those who need help with orientation and mobility, and people who want to make the most of their remaining vision. We have continued to expand our campaigning and policy work to advocate for the rights of people with sight loss. In addition, we also ensure all of our internal and external documents are accessible to anyone with sight loss.
The Trustees recognise that as a charity it is important that all decisions support the objective to help people with sight loss live the life they choose – to live actively, live independently and live well. To do this, people with lived experience of sight loss are engaged at all levels of the organisation.
We are committed to
transparency in our work and to include employees and volunteers in our decisions. During the last year, while the majority of our staff have worked from home, we introduced weekly online meetings with Executive Directors and Senior Leaders so the organisation could come together, receive updates and have an opportunity to raise questions. Trustees have also attended some of these calls. We have continued to communicate with employees and volunteers through day-today line management and team meetings. We also communicate regularly via our intranet, internal publications and by email. In addition, employees or volunteers can raise any concerns they may have with the Staff Representatives, our elected Consultation Partnership Group, which encourages a flow of information across the organisation.
In 2020, we introduced The Guide, a monthly all-volunteer e-newsletter which provides news and information on volunteering and the latest service developments. At the start of the pandemic, we also produced a series of Covid-19 mailings (email, print and alternative formats) to inform and reassure volunteers about our response to the pandemic and ensure their safety. From the summer, we began testing the webinar format as a communications channel – at national and role-specific level – to bring the volunteering community together virtually while sharing strategic updates, ideas and practical role information. Throughout the year, we also engaged with our Volunteer Voices representatives to review the existing mechanism for how volunteers provide feedback and the opportunities for them to become more involved in Guide Dogs. This review concluded at the end of 2020, and the new model is being introduced in 2021.
Guide Dogs has a procurement policy that governs engagement with suppliers when procuring goods and services. This policy is based on achieving best value wherever possible through a transparent, equitable, auditable, competitive process so that every £1 donated is spent in the most effective and efficient way. We aim to work responsibly with our suppliers by building long-term relationships. We are developing
48 **Guide Dogs** Annual Report & Accounts 2020
partnerships across the supply chain to support our property refresh, improving our technology and extending our digital content. The welfare of our dog population is at the heart of what we do and key to us being able to deliver our guide dog service. The supply of the right quality dog food is therefore key, as are the relationships with the suppliers that manufacture the food we use. This has meant that we have been able to work effectively with our supplier during the Covid-19 pandemic and have not seen any disruption to the delivery of dog food to our service users and volunteers.
The Trustees are supported by an extensive governance framework, described on page 47. The members of each Committee are selected to ensure the Trustees are provided with expert advice to understand the issues they need to consider when forming opinions and decisions.
We rely on donations and sponsorship to keep our lifechanging services running. We have policies and controls in place to ensure we raise money in a considerate and responsible way, as described further on page 45. We keep in regular contact through events with our sponsorship base to ensure we are transparent in our use of donations and are providing the services they are willing to continue to support.
Through the activities of our regional teams and volunteers, we are placing sight loss at the forefront of our engagement with the general public in our local communities. Training our dogs in a local environment also helps build wider understanding and awareness across the community.
The Trustees have overseen the implementation of measures to ensure that stakeholder interests are always considered and that the Trustees act fairly between stakeholders of the charity. Fortnightly board meetings were introduced at the start of Covid-19 to oversee Guide Dogs’ response. The risk register focuses on services and stakeholders and ensures that the requirements of s172 are embedded at the core of all key Trustees’ decisions.
Throughout the Covid-19 pandemic we have placed the safety of our community, staff and volunteers at the core of all decisions. In line with government guidance we ceased much of our face-to-face activities, furloughed operational and fundraising staff (with the majority of staff returning to work from July 2020 onwards), and extended our digital service offering. We have set up a Way Forward Group to manage the return to work as restrictions are removed, to ensure we act fairly across all stakeholders of the charity.
Structuring and managing Guide Dogs
49
## **Trustees Responsibility Statement**
**The Trustees are responsible for preparing the Trustees’ Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).**
Company law requires Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102, “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the surplus or deficit of the charitable company for that period. In preparing these financial statements, Trustees are required to:
- Select suitable accounting policies and then apply them consistently.
- Make judgements and estimates that are reasonable and prudent.
- State whether applicable UK Accounting Standards have been followed subject to any material departures disclosed and explained in the financial statements.
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
- Observe the methods and principles in the Charities SORP. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and ensure that the financial statements comply with the Companies Act 2006. Trustees are also responsible for safeguarding the assets of the charitable company and the group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
As far as we are aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware.
- The Trustees have taken all reasonable steps to know any relevant audit information and to establish that the auditor is aware of that information.
- The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on 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.
**Guide Dogs** Annual Report & Accounts 2020
50
**Trustee and Independent Committee Member attendance at Board and Committee meetings 2020**
In the table below the number in brackets denotes the number of meetings the Trustee/Independent Committee Member was eligible to attend, and the number outside brackets represents the number of meetings actually attended.
|James Hambro (Chairman)
Patricia Stafford
David Anderson
Amanda Ariss
David Bagley
Clare Black
Catherine Crofts
Robert Deakin
Michael Nussbaum
Ranjit Sondhi
Polly Shute
Polly Williams
John Wrighthouse
Jennelle Tilling
Emma West
Lynne Hill
Paul Baker
Michael Wroe
Michael Olaye
Mark Johnstone
Elaine Carr^
Nicholas Coleman^
Bruce Gordon^*
Robert Barnard-Smith^
Linda Bowen*
Roz Gratton*
Gordon Smith*
Claire Walters*|**Trustee**
**Board**
**(7)**
6 (7)
5 (5)
5 (5)
6 (7)
4 (5)
7 (7)
7 (7)
6 (7)
6 (7)
7 (7)
5 (7)
7 (7)
7 (7)
4 (4)
4 (4)
3 (4)
4 (4)
4 (4)
4 (4)
4 (4)
–
–
–
–
–
–
–
–|**Away**
**Day**
**(1)**
1 (1)
–
–
0 (1)
–
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
1 (1)
–
–
–
–
–
–
–
–|**Audit**
**and Risk**
**(5)**
–
–
–
–
–
4 (4)
–
1 (1)
–
–
–
4 (4)
–
–
–
–
–
–
–
2 (2)
5 (5)
3 (5)
–
–
–
–
–
–|**Pension**
**Trust**
**(4)**
–
–
–
–
4 (4)
–
–
–
–
–
–
4 (4)
4 (4)
–
–
–
–
–
–
–
–
–
4 (4)
4 (4)
4 (4)
4 (4)
4 (4)
4 (4)|**Remuneration**
**Committee**
**(4)**|**Investment**
**Committee**
**(4)**
–
–
–
–
2 (2)
4 (4)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
4 (4)
3 (4)
–
–
–
–|**Nomination**
**Committee**
**(1)**|
|---|---|---|---|---|---|---|---|
||||||1 (4)#
–
–
2 (4)
–
–
–
–
2 (4)
2 (2)
–
–
4 (4)
–
2 (2)
–
–
–
–
–
–
–
–
–
–
–
–
–||1 (1)|
||||||||1 (1)|
||||||||–|
||||||||1 (1)|
||||||||1 (1)|
||||||||1 (1)|
||||||||1 (1)|
||||||||1 (1)|
||||||||1 (1)|
||||||||1 (1)|
||||||||1 (1)|
||||||||1 (1)|
||||||||1 (1)|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
||||||||–|
- ^ Denotes Independent Committee Member
- Denotes Pension Trustee
# Denotes attendance in ex officio capacity, not as a member of the committee
Structuring and managing Guide Dogs
51
## **Managing Guide Dogs – our Executive Directors**
Guide Dogs’ Executive Directors are the Chief Executive and the Executive Directors. Together, they are accountable for Guide Dogs’ vision and strategy. The Executive Directors are responsible for the day-to-day management of Guide Dogs, acting under delegated authority given to them by the Board. It is important for Guide Dogs to have an effective leadership team in place in these senior roles. The Executive Directors in post during 2020 and as of 7 July 2021 were:
|**Name**
Tom C Wright
Deirdre T Evans
Emma J Foulds
Maria E Novell
Peter Osborne
Kathryn L Ward|**Position**|
|---|---|
||Chief Executive Officer|
||Chief Financial Officer|
||Director of Marketing and Strategy|
||Director of Fundraising|
||Director of Operations|
||Director of People and Performance|
## **Our policy on executive pay**
Guide Dogs is a growing charity, with the ambition to double the amount of support we provide. To achieve this, we need to recruit and retain talented leaders with the skills and experience to help us meet our goals. The Board of Trustees, all independent volunteers, decide the level of pay for the Executive Directors, who are accountable to the Board for ensuring we transform the lives of those we support. The current pay policy and terms and conditions for the Executive Directors were introduced in 2011 and are determined by the Guide Dogs’ Remuneration Committee operating as a sub-committee of the Board. This pay policy forms part of the contracts of employment of the Chief Executive and Executive Directors.
The Trustees use recognised benchmarks to ensure levels of pay are appropriate, and comparable with similar roles in organisations of a similar size and complexity. Usually any pay rises would be awarded based on benchmark, organisational and individual performance: in 2020, no pay rises were awarded to our executive team, due to the uncertainty which arose during the pandemic.
Guide Dogs is committed to transparency on the issue of pay and supports the recommendations in the National Council of Voluntary Organisations (NCVO). Information about executive pay is available on both our website and in our annual report.
52 **Guide Dogs** Annual Report & Accounts 2020
## **Salary ranges**
|**Salary ranges**||||
|---|---|---|---|
|**Name**
Deirdre T Evans
Emma J Foulds
Maria E Novell
Peter Osborne
Kathryn L Ward
Tom C Wright|**Position**
Chief Financial Officer
Director of Marketing and Strategy
Director of Fundraising
Director of Operations
Director of People and Performance
Chief Executive Officer|**Period of employment**
12 months
12 months
12 months
12 months
12 months
12 months|**Basic salary**|
||||£129,540|
||||£89,463|
||||£97,850|
||||£87,052|
||||£120,000|
||||£175,100|
Pension contributions, employer’s National Insurance and flexible benefits for key management listed above totalled £154,358 (2019: £160,989).
## **Other benefits**
## **Diversity, equality and inclusion**
Benefits for Executive Directors are in line with benefits and pension contributions available to all staff. This includes a flexible benefits allowance of up to 3% of salary, and employer pension contributions conditional on employee contributions.
As a charity based on inclusion, we are explicit about our commitment to increasing diversity at Guide Dogs. We recruit, work with and provide services to people whatever their age, disability, gender identity, nationality, race, religion or belief, sexual orientation, marital/civil partnership status, pregnancy or maternity status. This past year we have renewed our promise to listen, learn and act, doing more to become diverse. We must be an organisation that represents everyone we support and everyone who supports us, one that recognises and supports diversity at every level. This past year we progressed the culture that will get us there.
During 2020 we have developed action plans to enhance and support diversity, equality and inclusion within the Guide Dogs
family across protected characteristics, starting with disability and race. We have established safe space networks with our staff, rolled out training for managers and awareness sessions for all, and embedded more inclusive ways of working. We have developed new ways to support and safeguard our people (workforce, volunteers, service users and supporters) during the Covid-19 pandemic. We have also launched our people and wellbeing strategy, enabling staff to be at their best, while reducing stigma for those times when they are not.
Our aim remains to create a culture at Guide Dogs where people can be themselves – which allows and encourages people, including those from under-represented and marginalised groups, to engage with us and to thrive.
Structuring and managing Guide Dogs
53
**Provision of information to Auditor**
## **Employee involvement and employing people with disabilities**
We are committed to transparency in our work and to include employees in our decisions. We communicate with employees through day-to-day line management, team and cross-directorate meetings, our intranet and email. In addition, employees can raise any questions or concerns they may have via regular all-staff Q&A meetings, and via our elected staff representatives, who in turn enable a flow of information up and down the organisation.
## **Guide Dogs is a Disability Confident Employer**
Guide Dogs has been awarded the Two Ticks symbol by Jobcentre Plus. The symbol identifies employers who have undertaken to meet five commitments on the employment, retention, training and career development of employees with disabilities. We apply the same principles to anyone who becomes disabled while employed by Guide Dogs.
## **Related parties**
Guide Dogs is the sole member, or owns the entire issued share capital, of its seven subsidiary undertakings:
- The Guide Dogs for the Blind Association (Trading Company) Limited is the charity’s trading subsidiary.
- Blind Children UK is a charity which raises funds to provide services to children and young people with vision impairment and their families. In 2020 Blind Children UK made a restricted grant of its liquid funds to Guide Dogs for use in providing these services.
- Guide Dogs UK Limited, GDBA Community Care Services Limited, GDBA (Pension Fund Trustee) Limited, Guide Dogs Limited and Blind Children UK (Trading) Limited were dormant during 2020.
The financial performance of these subsidiaries is disclosed in Note 14 of the financial statements.
As Trustees, at the date of approval of this report, we confirm that:
- So far as we are aware, there is no relevant audit information of which the company’s auditor is unaware.
- We have taken all the steps possible to make ourselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information.
## **Reappointment of Auditor**
In accordance with Section 485 of the Companies Act 2006, a resolution is to be proposed at the Annual General Meeting for reappointment of Deloitte LLP as auditor of the Company.
The Trustees’ report, including the Strategic report and the Directors’ report was approved by the Board on 7 July 2021 and signed on its behalf by:
**James Hambro** Chairman
**Guide Dogs** Annual Report & Accounts 2020
54
## **Corporate information**
**The Guide Dogs for the Blind Association (Guide Dogs) operates under the abbreviated name of Guide Dogs. Guide Dogs is a registered charity (Number 209617 in England and Wales and number SC038979 in Scotland) and was incorporated as a company limited by guarantee (registered in England and Wales number 00291646) on 30 August 1934. Its Central Office which is also its Registered Office, is Hillfields, Reading Road, Burghfield Common, Reading, Berkshire RG7 3YG.**
Guide Dogs is governed by its Articles of Association, which were last amended on 20 July 2013. Guide Dogs is a company limited by guarantee and does not have a share capital. In the event of the company being wound up, each member of the company undertakes to contribute such amount as may be required (not exceeding £1) towards the costs of dissolution and liabilities of the Association.
## **Public benefit**
The objects and aims of Guide Dogs fall within the sub-section of the Charities Act 2011 related to the relief of those in need, by reason of youth, age, ill-health, disability, financial hardship or other disadvantage.
No person who is blind or partially sighted is prohibited from applying for assistance from the services we provide on the grounds of financial circumstances.
The Board has paid due regard to the public benefit guidance published by the Charity Commission.
## **Principal Advisors**
## **Auditor**
Deloitte LLP 3 Victoria Square Victoria Street St Albans AL1 3TF United Kingdom
## **Bankers**
Barclays Bank Plc Thames Valley Corporate Wytham Court 11 West Way Oxford OX2 0JB
HSBC Bank plc 25 High Street Windsor Berkshire SL4 1LN
## **Investment Fund Managers**
Newton Investment Management Ltd The Bank of New York Mellon Centre 160 Queen Victoria Street London EC4V 4LA
CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET
Corporate information
55
# **Independent auditor’s report to the members and the Trustees of Guide Dogs for the Blind Association**
**Guide Dogs** Annual Report & Accounts 2020
56
## **Report on the audit of the financial statements**
## **Opinion**
In our opinion the financial statements of Guide Dogs for the Blind Association (the ‘charitable company’) and its subsidiaries (the ‘group’):
- give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2020, and of the group’s and parent charitable company’s incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
- 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.
We have audited the financial statements, which comprise:
- consolidated statement of financial activities incorporating consolidated income and expenditure account;
- the group and parent charitable company balance sheets;
- the group cash flow statement;
- the statement of accounting policies; and
- the related Notes 1 to 18.
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).
## **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 group and of the parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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.
## **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 group’s and parent 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**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information within the annual report. 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.
Corporate information
57
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 course of 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.
**Responsibilities of Trustees** As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purpose 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 group’s and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
**Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and the Companies Act 2006 and report in accordance with those Acts and relevant regulations made or having effect thereunder.
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.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: **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 design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We considered the nature of the group’s industry and its control environment, and reviewed the group’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the group operates in, and identified the key laws and regulations that:
- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Charities Act, UK Companies Act and pensions legislation; and
58 **Guide Dogs** Annual Report & Accounts 2020
- do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company’s ability to operate or to avoid a material penalty. These included the Charity Commission for England and Wales (Charity Commission) regulations, Scottish Charity Regulator (OSCR) regulations, and Fundraising regulations.
We discussed among the audit engagement team and relevant internal specialists, such as pensions and IT, regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our specific procedures performed to address it are described below:
- risk of fraud in revenue recognition is a presumed risk under International Auditing Standards.
We tested a sample of accrued legacy income recognised to the supporting legacy notifications and have assessed the judgements and estimates made by management in the recognition of this income. In performing this, we tested that these have been accounted for in accordance with the Charities SORP (2019).
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
- reviewing financial statement disclosures by testing supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
- reading minutes of meetings of those charged with governance, and reviewing internal audit reports and reviewing any correspondence with HMRC and the Charity Commission.
We focused on the risk more specifically on accrued legacy income, as the income is recognised on a receivable basis when the charity is entitled to the legacy, receipt is probable and the value can be estimated with sufficient accuracy. This is subject to judgement around whether the recognition criteria are met.
Accounts and statements
59
## **Report on other legal and regulatory requirements**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ report, which includes the Strategic report and the Directors’ 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.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic report or the Directors’ report included within the Trustees’ report.
## **Matters on which we are**
**required to report by exception** Under the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 we are required to report in respect of the following matters if, in our opinion:
- adequate and proper accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company 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.
We have nothing to report in respect of these matters.
Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). 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.
## **Jonathan Gooding**
(Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor St Albans, United Kingdom
8 July 2021
## **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
Deloitte LLP is eligible for appointment as auditor for the charity by virtue of its eligibility for appointment as auditor of a company under Section 1212 of the Companies Act 2006.
60 **Guide Dogs** Annual Report & Accounts 2020
## **Accounts and financial statements**
Accounts and financial statements
61
## **Consolidated statement of financial activities incorporating an income and expenditure account for the year ended 31 December 2020**
|Notes
**Income and endowment from:**
1
Donations and legacies
Charitable activities
Other trading activities
Investments
Other income
**Total income**
**Expenditure on:**
2
Raising funds
**Charitable activities**
Provision of guide dog services
Provision of other adult services
Provision of other children’s services
Research and development
Advocacy and awareness
Total charity expenditure
**Total expenditure**
Net gain/(loss) on investments
**Net income for the year**
**Transfers between funds**
**Other recognised losses**
Actuarial loss on defined benefit pension
scheme
**Net movements in funds**
**Reconciliation of funds**
Fund balance brought forward at 1 January
**Fund balance carried forward**
**at 31 December**|Unrestricted
funds
£m
100.4
0.8
11.8
0.9
0.2
**114.1**
35.9
44.3
8.6
5.4
0.6
9.6
68.5
**104.4**
4.2
**13.9**
**4.8**
(0.9)
**17.8**
132.4
**150.2**|Restricted
funds
£m
7.5
–
–
–
4.3
**11.8**
–
7.0
0.1
0.4
–
–
7.5
**7.5**
–
**4.3**
**(4.8)**
–
**(0.5)**
3.2
**2.7**|Endowment
funds
£m
–
–
–
–
–
**–**
–
–
–
–
–
–
–
**–**
–
**–**
**–**
–
**–**
0.5
**0.5**|**Total**
**2020**
**£m**
107.9
0.8
11.8
0.9
4.5
**125.9**
35.9
51.3
8.7
5.8
0.6
9.6
76.0
**111.9**
4.2
**18.2**
**–**
(0.9)
**17.3**
136.1
**153.4**|Total
2019
£m
108.2
1.4
10.7
1.0
0.9|
|---|---|---|---|---|---|
||||||**122.2**|
||||||37.7|
||||||51.8
8.0
5.5
0.6
9.8|
||||||75.7|
||||||**113.4**|
||||||5.2|
||||||**14.0**|
||||||**–**|
||||||(1.0)|
||||||**13.0**|
||||||123.1|
||||||**136.1**|
All results are derived from continuing operations. There are no other recognised gains or losses. The prior year consolidated statement of financial activities is presented in Note 18.
The accounting policies and Notes on pages 65 to 92 form part of these financial statements.
62 **Guide Dogs** Annual Report & Accounts 2020
## **Consolidated and charity balance sheets At 31 December 2020**
|Notes
**Fixed assets**
Tangible assets
5
Investments
7
**Current assets**
Stocks
8
Debtors
9
Cash at bank and in hand
**Creditors**
Amounts falling due within one year
10
**Net current assets**
**Total assets less current liabilities**
**Creditors**
Amounts falling due after more than one year
11
**Net assets**
**Unrestricted funds**
General funds
Designated funds
**Total unrestricted funds**
**Restricted funds**
**Endowment funds**
**Total funds**
12,16|**Group**
**2020**
**£m**
Group
2019
£m
36.2
34.4
66.7
63.3
102.9
97.7
0.3
0.3
45.6
40.8
13.9
6.5
59.8
47.6
(9.2)
(9.1)
50.6
38.5
153.5
136.2
(0.1)
(0.1)
153.4
136.1
85.4
84.1
64.8
48.3
150.2
132.4
2.7
3.2
0.5
0.5
153.4
136.1|**Charity**
**2020**
**£m**
Charity
2019
£m
36.2
34.4
67.2
63.8|
|---|---|---|
|||103.4
98.2|
|||0.1
–
46.1
40.9
12.2
5.7|
|||58.4
46.6
(9.1)
(9.0)|
|||49.3
37.6|
|||152.7
135.8|
|||(0.1)
(0.1)|
|||152.6
135.7|
|||84.9
84.0
64.8
48.3|
|||149.7
132.3
2.4
2.9
0.5
0.5|
|||152.6
135.7|
The parent charity, The Guide Dogs for the Blind Association, has gross income of £124.6m (2019: £121.1m) and a result of £16.9m gain (2019: £12.9m gain) for the year. As provided by Section 408 of the Companies Act 2006, no separate income and expenditure account is presented for the parent charity. Amounts receivable after more than one year are not material and have been included in debtors. The Financial Statements of The Guide Dogs for the Blind Association (registered company number 00291646) were approved and authorised for issue by the Board of Trustees on 7 July 2021 and signed on its behalf by:
**James Hambro** Chairman
**Mark Johnstone** Trustee
The accounting policies and Notes on pages 65 to 92 form part of these financial statements.
Accounts and financial statements
63
## **Consolidated cash flow statement For the year ended 31 December 2020**
|**Consolidated cash flow statement**
**For the year ended 31 December 2020**|||
|---|---|---|
|Notes
Net cash inflow from operating activities
17
**Return on investment and servicing of finance**
Investment income received
**Capital expenditure and financial investment**
Payments for tangible fixed assets
Proceeds from sale of tangible fixed assets
Net investment in investment portfolio
Increase/(decrease) in cash in the year
Net cash at 1 January
Increase/(decrease) in the year
Net cash at 31 December|**2020**
**£m**
10.2
0.9
(4.7)
0.2
0.8
(3.7)
7.4
6.5
7.4
13.9|2019
£m
1.9|
|||1.0|
|||(2.3)
1.3
(6.5)|
|||(7.5)|
|||(4.6)|
|||11.1
(4.6)|
|||6.5|
The accounting policies and Notes on pages 65 to 92 form part of these financial statements.
**Guide Dogs** Annual Report & Accounts 2020
64
**Notes to the financial statements For the year ended 31 December 2020**
## **Company and charitable status**
The Guide Dogs for the Blind Association (Guide Dogs), a public benefit entity, is incorporated in England and Wales as a company limited by guarantee not having share capital. There are currently 17 Trustees who are also the members of the company. Each member has undertaken to contribute to the assets in the event of winding up a sum not exceeding £1. Guide Dogs is a registered charity. The registered office and charity registration numbers are given on page 55.
The principal accounting policies adopted in the preparation of these financial statements are as follows:
## **a. Basis of accounting**
The financial statements are prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2019)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective 1 January 2019; and the Companies Act 2006.
The Guide Dogs for the Blind Association meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemption available to it in respect of its separate financial statements in relation to presentation of a cash flow statement.
## **b. Preparation of the accounts on a going concern basis**
Guide Dogs reported a total cash inflow of £6.5m for the year (2019: £4.4m outflow) and an inflow of £7.4m (2019: £4.6m outflow) on a group basis.
The Board of Trustees has reviewed financial projections for Guide Dogs which take into account the expected impacts of the Covid-19 pandemic and lockdown (see pages 10 to 13 of the Trustees’ report). The Board of Trustees consider that there are sufficient cash resources for at least the next twelve months from the date of signature of the financial statements to manage any foreseeable downturn in the UK and global economy. The Board also considers that there is a reasonable expectation that The Guide Dogs for the Blind Association has adequate resources to continue in operational existence for the foreseeable future based on future cashflows and a number of worst-case scenarios which indicate that it has sufficient cash resources to continue to operate for the foreseeable future, and for this reason the Board continues to adopt the ‘going concern’ basis in preparing the financial statements.
## **c. Group financial statements**
Group financial statements have been prepared in respect of the Charity and its wholly owned subsidiary undertakings The Guide Dogs for the Blind Association (Trading Company) Limited and Blind Children UK. These financial statements have been consolidated on a line by line basis and the results of the subsidiary undertakings are disclosed in Note 14.
Accounts and financial statements
65
**Notes to the financial statements For the year ended 31 December 2020**
## **d. Income**
Income is recognised when the Group and Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
- i. The income of fundraising branches and other donations is accounted for on a receivable basis. Income from raffles and draws is accounted for at the time of cash receipt.
- ii. Donated goods and professional services are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised and is referred to in the Trustees’ report (including the Directors’ report and Strategic report) for more information about their contribution. On receipt, donated goods are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
- iii. Legacy income is accounted for when notification of the legacy is received, generally after grant of probate, providing the amount can be reliably ascertained and that ultimate receipt is probable.
- iv. Investment income is accounted for on an accruals basis.
- v. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
- vi. Government grant income is accounted for on a cash basis.
## **e. Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is recognised on an accruals basis.
- i. Grants payable are recognised when a legal or operationally binding commitment has been made to make the grant payment.
- ii. The costs of charitable activities and generating funds include relevant direct costs incurred and the direct costs of staff employed on the activity, together with a share of overheads and support costs calculated in proportion to the number of staff employed in this area. Governance costs (relating to the direct costs associated with the constitutional and statutory requirements of the charity and including the costs of internal and external audit, secretariat and other related costs) are included in the support costs allocation.
- iii. The cost of irrecoverable Value Added Tax is included within relevant expenditure.
66 **Guide Dogs** Annual Report & Accounts 2020
**Notes to the financial statements For the year ended 31 December 2020**
## **f. Allocation of support costs**
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the group’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. Support costs have been allocated primarily on the basis of headcount of staff included in each charitable activity.
## **g. Leases**
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
## **h. Tangible fixed assets**
Tangible fixed assets are stated at cost, with the exception of freehold land and buildings which are stated at historic valuation, which are adopted as deemed costs upon FRS 102 transition (see Note 5), net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:
|Freehold land|Nil|
|---|---|
|Freehold buildings|2½% – 5%|
|Furniture and equipment|10% – 20%|
|Motor vehicles|20%|
|Computers|33%|
Leasehold properties are depreciated over their lease terms on a straight-line basis.
## **i. Intangible fixed assets**
Intangible fixed assets represent costs of significant software and IT systems for use in the long term. Research phase costs are expensed, costs of the development and implementation phases are capitalised. Costs are amortised over their useful economic life (usually 5-10 years).
## **j. Financial instruments**
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
The charity and group only have financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Accounts and financial statements
67
## **Notes to the financial statements For the year ended 31 December 2020**
## **k. Significant areas of estimation and judgement**
In the application of the Group’s accounting policies, which are described here, the Trustees are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
## **Critical accounting judgements**
- Pension fund asset recognition: the defined benefit scheme surplus of £8.1m has not been recognised as the Trustees judge that they cannot demonstrate that it is recoverable by Guide Dogs. The valuation is prepared by a qualified actuary which reflects a number of judgements and estimates including the expected return on assets, the discount rate, cost inflation and life expectancy. Changes in these assumptions have a significant effect on the value of the defined benefit obligation.
- The accounting treatment of dogs: the cost of dog training and the provision of dogs for partnerships are running costs of the charity, incurred in line with charitable objectives. Costs are expensed in the period in which they are incurred, and no asset nor corresponding liability is recognised in the balance sheet. Dogs are bred internally, not purchased externally, with the Trustees judging the associated costs to represent key running costs of the charity and delivery of its charitable objectives, rather than development of a resource controlled by the company i.e. an asset. Breeding and training are both regarded as activities that the charity undertakes on behalf of its beneficiaries, with the undertaking of these processes representing fulfilment of an implicit charitable objective. The expensing of such costs aligns with the Charities SORP definition of expenditure, being the amount of a charity’s resources spent in carrying out its activities.
## **Sources of estimation uncertainty**
- Accrued legacy income (see Note 9): the accrued legacy income amounts to £40.8m at 31 December 2020 (£37.0m at 31 December 2019). The legacy income is recognised on a receivable basis when the charity is entitled to the legacy, receipt is probable and the value can be estimated with sufficient accuracy. The critical judgement involved in the recognition of legacy income is around whether the recognition criteria are met. The key sources of estimation uncertainty are in relation to the value of the legacy, and the legal fees and other liabilities, which are estimated based on the best information available at the balance sheet date. Due to the uncertainty associated with such items, there is a possibility that, on conclusion of open matters at a future date, the final outcome may differ significantly.
## **l. Investments**
Investments are stated at market value at the balance sheet date. The value of unit trusts is the bid price of the units.
**Guide Dogs** Annual Report & Accounts 2020
68
**Notes to the financial statements For the year ended 31 December 2020**
It is the charity’s policy to keep valuations up to date such that when investments are sold there is no realised gain or loss arising. As a result, the Statement of Financial Activities does not distinguish between the valuation adjustments relating to sales and those relating to continued holdings as they are together treated as changes in the value of the investment portfolio throughout the year.
Investments in subsidiary companies are stated at cost, less any provision for impairment.
## **m. Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.
## **n. Pension costs**
Guide Dogs sponsors two pension schemes:
(a) A defined contribution scheme. The pension charge in relation to this scheme is based upon employer’s contributions payable in the year.
(b) A defined benefit pension scheme. This scheme is closed to future accrual. The pension charge in relation to this scheme is based on annual valuations undertaken by the scheme Actuary in compliance with the provisions of FRS 102.
In addition, there is a small unfunded pension liability in respect of three ex-employees. The liability in relation to these employees is recognised in accordance with actuarial valuation.
## **o. Fund accounting**
The charity has a few small permanent endowments, which have to be retained as capital in perpetuity. However, income arising from these funds is wholly unrestricted.
Restricted funds are those which must be applied in accordance with the purpose specified by the donor. Expenditure relating to these purposes is therefore charged directly to the relevant fund.
The unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects. Such funds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose. Transfers of funds from general unrestricted funds to designated funds are approved by the Trustees. Further details of each fund are disclosed in Note 12.
## **p. Taxation**
Guide Dogs, as a registered charity, is exempt from corporation tax under Chapter 3 of Part 11 to the Corporation Tax Act 2010 or Section 256 of the Taxation of the Chargeable Gains Act 1992, to the extent that surpluses are applied to its charitable purposes. No corporation tax charge has arisen in the charity’s subsidiaries, in one case because the subsidiary itself is a registered charity, and in all other cases due to their policies of gifting all taxable profits to Guide Dogs each year. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
Accounts and financial statements
69
**Notes to the financial statements For the year ended 31 December 2020**
## 1. Income
|**Income from**
**Donations and legacies**
Community fundraising
Donor-based fundraising
Corporate and trust income
Legacies
**Charitable activities**
Sale of rehabilitation services under contract
Ancillary trading
**Other trading activities**
Raffles and draws
Lotteries
Other
**Investment income**
**Other income**
Other
Covid Job Retention Scheme (government funding)
**Total income**|**2020**
**£m**
4.3
52.5
2.8
48.3
107.9
0.6
0.2
0.8
3.8
7.0
1.0
11.8
0.9
0.2
4.3
4.5
125.9|2019
£m
8.2
49.1
2.8
48.1|
|---|---|---|
|||108.2|
|||1.0
0.4|
|||1.4|
|||3.0
6.5
1.2|
|||10.7|
|||1.0|
|||0.9
–|
|||0.9|
|||122.2|
Legacies excludes contentious cases amounting to £0.9m (2019: £0.9m). In addition, there are a further 347 cases (2019: 329) where a life tenancy exists or will conditions have yet to be met which are also not included in legacy revenue. Corporate and trust income includes £0.4m (2019: £0.4m) income from government and government related grants.
**Guide Dogs** Annual Report & Accounts 2020
70
## **Notes to the financial statements For the year ended 31 December 2020**
## 2. Total expenditure
|**Expenditure on raising donations and legacies**
Community fundraising
Donor-based fundraising
Corporate and trust income
Fundraising development and administration
Legacy marketing and administration
**Expenditure on trading activities**
Cost of goods sold and other costs
Raffles and draws
Lotteries
**Investment management fees**
**Expenditure on raising funds**
**Charitable expenditure**
Provision of guide dog services
Provision of other adult services
Provision of children’s services
Research and development
**Advocacy and awareness**
**Total expenditure**|Direct
costs
£m
2.9
19.8
1.0
1.9
0.7
26.3
0.8
1.5
4.2
6.5
0.2
33.0
40.6
6.4
4.2
0.5
8.8
60.5
93.5|**Support**
**costs**
**£m**
1.0
0.7
0.3
0.6
0.2
2.8
0.1
–
–
0.1
–
2.9
10.7
2.3
1.6
0.1
0.8
15.5
18.4|**Total**
**2020**
**£m**
3.9
20.5
1.3
2.5
0.9
29.1
0.9
1.5
4.2
6.6
0.2
35.9
51.3
8.7
5.8
0.6
9.6
76.0
111.9|Total
2019
£m
5.1
21.9
1.6
2.2
0.9|
|---|---|---|---|---|
|||||31.7|
|||||1.2
1.7
2.7|
|||||5.6|
|||||0.4|
|||||37.7|
|||||51.8
8.0
5.5
0.6
9.8|
|||||75.7|
|||||113.4|
Accounts and financial statements
71
**Notes to the financial statements For the year ended 31 December 2020**
## 2. Total expenditure continued
## **2019 comparatives**
|**Expenditure on raising donations and legacies**
Community fundraising
Donor-based fundraising
Corporate and trust income
Fundraising development and administration
Legacy marketing and administration
**Expenditure on trading activities**
Cost of goods sold and other costs
Raffles and draws
Lotteries
**Investment management fees**
**Expenditure on raising funds**
**Charitable expenditure**
Provision of guide dog services
Provision of other adult mobility services
Provision of children’s services
Research and development
Advocacy and awareness
**Total expenditure**|Direct
costs
£m
4.1
21.2
1.3
1.7
0.7
29.0
1.2
1.7
2.7
5.6
0.4
35.0
42.3
6.1
4.2
0.5
9.1
62.2
97.2|Support
costs
£m
1.0
0.7
0.3
0.5
0.2
2.7
–
–
–
–
–
2.7
9.5
1.9
1.3
0.1
0.7
13.5
16.2|**Total**
**2019**
**£m**
5.1
21.9
1.6
2.2
0.9|
|---|---|---|---|
||||31.7|
||||1.2
1.7
2.7|
||||5.6|
||||0.4|
||||37.7|
||||51.8
8.0
5.5
0.6
9.8|
||||75.7|
||||113.4|
**Guide Dogs** Annual Report & Accounts 2020
72
**Notes to the financial statements For the year ended 31 December 2020**
|**Notes to the financial statements**
**For the year ended 31 December 2020**|||
|---|---|---|
|2. Total expenditure continued
Resources expended include:
Lease charges
Other – land and buildings
Depreciation charged in the year
Fees payable to the charity’s auditor (inclusive of VAT)
The audit of the charity’s annual financial statements
The audit of the charity’s subsidiaries pursuant to legislation|**2020**
**£m**
1.2
2.8
**£’000**
72.5
12.3|2019
£m
1.0
2.9|
|||**£’000**
69.0
11.8|
Accounts and financial statements
73
## **Notes to the financial statements For the year ended 31 December 2020**
## 2. Total expenditure continued **Support cost allocation**
|2. Total expenditure continue
**Support cost allocation**|d|||||||
|---|---|---|---|---|---|---|---|
|Governance
Finance
Information technology
Human resources
Marketing and communications
Central property costs
Other central costs
**Total**|Raising
funds
£m
–
0.4
1.1
0.5
0.1
0.2
0.6
2.9|Provision of
guide dog
services
£m
0.1
1.7
3.8
1.9
0.4
0.8
2.0
10.7|Provision of
other adult
mobility
services
£m
0.1
0.4
0.8
0.4
0.1
0.2
0.3
2.3|Provision of
children’s
services
£m
–
0.2
0.6
0.3
0.1
0.1
0.3
1.6|Research
and
development
£m
–
–
0.1
–
–
–
–
0.1|Advocacy
and
awareness
£m
–
0.1
0.3
0.1
0.1
0.1
0.1
0.8|**Total**
**2020**
**£m**
**0.2**
**2.8**
**6.7**
**3.2**
**0.8**
**1.4**
**3.3**|
||||||||**18.4**|
## **2019 comparatives**
|**2019 comparatives**||||||||
|---|---|---|---|---|---|---|---|
|Governance
Finance
Information technology
Human resources
Marketing and communications
Central property costs
Other central costs
**Total**|Raising
funds
£m
0.1
0.4
0.7
0.5
0.1
0.2
0.7
2.7|Provision of
guide dog
services
£m
0.1
1.3
2.4
1.8
0.3
0.8
2.8
9.5|Provision of
other adult
mobility
services
£m
–
0.3
0.5
0.3
0.1
0.1
0.6
1.9|Provision of
children’s
services
£m
–
0.2
0.3
0.3
0.1
0.1
0.3
1.3|Research
and
development
£m
–
–
–
–
–
–
0.1
0.1|Advocacy
and
awareness
£m
–
0.1
0.2
0.1
–
0.1
0.2
0.7|**Total**
**2019**
**£m**
**0.2**
**2.3**
**4.1**
**3.0**
**0.6**
**1.3**
**4.7**|
||||||||**16.2**|
**Guide Dogs** Annual Report & Accounts 2020
74
**Notes to the financial statements For the year ended 31 December 2020**
## 3. Research commissioned – grants payable
Research and development comprises strategic, market, consumer and scientific research and technology development. Total research and development expenditure amounted to £0.5m (2019: £0.6m). No new grants were made in 2020 (2019: £nil).
## 4. Trustees and employees
The Trustees and persons connected with them have not received, obtained or waived any remuneration or other financial benefits for the year directly or indirectly from Guide Dogs (2019: £nil). Travelling and subsistence expenses were reimbursed in respect of five (2019: eleven) trustees, totalling £559 (2019: £3,956).
## **Staff costs**
|Wages and salaries
Social security costs
Other pension costs
Sub total
Other staff related costs
**Total**|**2020**
**£m**
45.9
4.5
3.0
53.4
4.1
**57.5**|2019
£m
43.5
4.3
2.9|
|---|---|---|
|||50.7
5.6|
|||**56.3**|
Staff costs include £1.1m redundancy (2019: £0.3m). Payments of £0.6m (2019: £0.3m) were made during the year, with £0.5m (2019: £nil) accrued for staff placed at risk during 2020.
The average number of persons employed during the year ended 31 December 2020 is shown below on full-time equivalent basis:
|Fundraising and legacies
Provision of guide dogs services
Provision of other adult services
Provision of other children’s services
Research and development
Advocacy and awareness
Management, administration and clerical (indirect)|**2020**
**Number**
202
740
163
107
7
59
164
1,442|2019
Number
203
725
139
101
7
55
154|
|---|---|---|
|||1,384|
Pension contributions were paid into Guide Dogs’ defined contribution scheme for 1,480 employees (2019: 1,463 employees).
Accounts and financial statements
75
**Notes to the financial statements For the year ended 31 December 2020**
## 4. Trustees and employees continued
The number of group employees whose emoluments, excluding pension contributions and employers’ National Insurance, but including benefits in kind, were in excess of £60,000 was:
|
National Insurance, but including benefits in kind, were in excess of £60,000 was:|||
|---|---|---|
|£60,001 to £70,000
£70,001 to £80,000
£80,001 to £90,000
£90,001 to £100,000
£100,001 to £110,000
£120,001 to £130,000
£130,001 to £140,000
£170,001 to £180,000
£180,001 to £190,000|**2020**
**Number**
19
6
6
2
1
1
1
–
1
37|2019
Number
21
2
9
2
–
–
1
1
–|
|||36|
The 2019 comparatives have been restated so that they are prepared on a consistent basis with 2020 employee emoluments.
Pension contributions were paid into the Guide Dogs’ defined contribution scheme for the year on behalf of 36 (2019: 35) of the employees with emoluments in excess of £60,000.
The key management personnel of the parent charity and the Group are listed on pages 52 and 53. The total remuneration (including pension contributions and employers’ National Insurance) of the key management personnel of the charity for the year totalled £853,363 (2019: £920,000).
No staff are employed directly by subsidiary companies.
**Guide Dogs** Annual Report & Accounts 2020
76
## **Notes to the financial statements For the year ended 31 December 2020**
## 5. Tangible fixed assets
|5. Tangible fixed assets||||||
|---|---|---|---|---|---|
|**Group and Charity**
**Cost or valuation**
As of 1 January 2020
Additions
Disposals
**At 31 December 2020**
**Depreciation**
As of 1 January 2020
Provision for year
Disposals
**At 31 December 2020**
**Net book value 31 December 2020**
Net book value 31 December 2019|Freehold
properties
£m
48.4
1.2
–
49.6
18.2
1.4
–
19.6
30.0
30.2|Assets
under
construction
£m
–
1.6
–
1.6
–
–
–
–
1.6
–|Leasehold
properties
£m
1.0
–
–
1.0
0.8
–
–
0.8
0.2
0.2|Furniture,
equipment,
vehicles and
computers
£m
14.6
1.9
(1.3)
15.2
10.6
1.4
(1.2)
10.8
4.4
4.0|**Total**
**£m**
64.0
4.7
(1.3)|
||||||67.4|
||||||29.6
2.8
(1.2)|
||||||31.2|
||||||36.2|
||||||34.4|
The freehold property depreciation charge for the year on a historical cost basis was identical to the actual charge as the revalued assets have now been fully depreciated (2019: identical).
## 6. Intangible fixed assets
Intangible fixed assets represent costs of significant software and IT systems for use in the long term, no costs have been capitalised to date.
Accounts and financial statements
77
**Notes to the financial statements For the year ended 31 December 2020**
## 7. Investments
|**a. Movement in investments during the year**
Market value as of 1 January
New investment
Withdrawals
Dividends received
Net gain/(loss) on revaluation
Fees paid
Market value at 31 December
**b. Analysis of investments of market value**
Listed investments
United Kingdom
Investments in subsidiaries
**c. Analysis of investment cost**
Listed investments
United Kingdom
Investments in subsidiaries|**Group**
**2020**
**£m**
Group
2019
£m
63.3
51.0
–
6.5
(1.5)
–
0.9
1.0
4.2
5.2
(0.2)
(0.4)
66.7
63.3
**Group**
**2020**
**£m**
Group
2019
£m
66.7
63.3
–
–
66.7
63.3
**Group**
**2020**
**£m**
Group
2019
£m
55.9
57.4
–
–
55.9
57.4|**Charity**
**2020**
**£m**
Charity
2019
£m
63.8
51.5
–
6.5
(1.5)
–
0.9
1.0
4.2
5.2
(0.2)
(0.4)|
|---|---|---|
|||67.2
63.8|
|||**Charity**
**2020**
**£m**
Charity
2019
£m
66.7
63.3
0.5
0.5|
|||67.2
63.8|
|||**Charity**
**2020**
**£m**
Charity
2019
£m
55.9
57.4
0.5
0.5|
|||56.4
57.9|
At 31 December 2020 the listed investments included holdings in COIF Charities Investment Fund, managed by CCLA, valued at £22.7m (2019: £20.7m) and BNY Mellon’s Newton Real Return Fund valued at £44.0m (2019: £42.5m). The CCLA holding includes £0.5m (2019: £0.5m) representing Guide Dogs’ Endowment Funds.
The results of the charity’s subsidiaries are discussed in Note 14.
**Guide Dogs** Annual Report & Accounts 2020
78
## **Notes to the financial statements For the year ended 31 December 2020**
## 8. Stocks
|Equipment
Trading stock|**Group**
**2020**
**£m**
Group
2019
£m
0.1
0.1
0.2
0.2
0.3
0.3|**Charity**
**2020**
**£m**
Charity
2019
£m
0.1
–
–
–|
|---|---|---|
|||0.1
–|
|9. Debtors
Tax recoverable
Trade debtors
Due from subsidiary undertakings
Accrued legacy income
Other accrued income
Other prepayments|**Group**
**2020**
**£m**
Group
2019
£m
2.1
1.5
0.2
0.1
–
–
40.8
37.0
0.6
0.3
1.9
1.9
45.6
40.8|**Charity**
**2020**
**£m**
Charity
2019
£m
2.1
1.5
0.2
0.1
0.5
0.2
40.8
36.9
0.6
0.3
1.9
1.9|
|---|---|---|
|||46.1
40.9|
Accrued legacy income may be received after more than one year, but owing to uncertainty over the exact date of receipt it is impractical to estimate the value receivable after more than one year. Amounts receivable after more than one year are not material and have been included in debtors.
## 10. Creditors: amounts falling due within one year
|Trade creditors
Other creditors
Tax and social security
Accruals and deferred income|**Group**
**2020**
**£m**
Group
2019
£m
2.1
3.6
0.7
0.5
1.3
1.0
5.1
4.0
9.2
9.1|**Charity**
**2020**
**£m**
Charity
2019
£m
2.1
3.7
0.6
0.5
1.3
0.9
5.1
3.9|
|---|---|---|
|||9.1
9.0|
A £5.0m revolving credit facility commenced from October 2020 for 18 months. Nil balance was drawdown at the end of December 2020.
## 11. Creditors: amounts falling due after more than one year
||**Group**|Group|**Charity**|Charity|
|---|---|---|---|---|
||**2020**|2019|**2020**|2019|
||**£m**|£m|**£m**|£m|
|Unfunded pension obligations|0.1|0.1|0.1|0.1|
The unfunded pension obligations are in respect of four (2019: four) retired members of staff.
Accounts and financial statements
79
## **Notes to the financial statements For the year ended 31 December 2020**
|12. Fund balances
**Year ended 31 December 2020**
**Group**
Unrestricted funds
Restricted funds
Endowment funds
**Year ended 31 December 2020**
**Charity**
Unrestricted funds
Restricted funds
Endowment funds
**Year ended 31 December 2019**
**Comparatives**
**Group**
Unrestricted funds
Restricted funds
Endowment funds
**Year ended 31 December 2019**
**Comparatives**
**Charity**
Unrestricted funds
Restricted funds
Endowment funds|1 January
2020
£m
132.4
3.2
0.5
136.1
1 January
2020
£m
132.3
2.9
0.5
135.7
1 January
2019
£m
117.3
5.3
0.5
123.1
1 January
2019
£m
117.3
5.0
0.5
122.8|Income
£m
114.1
11.8
–
125.9
Income
£m
112.8
11.8
–
124.6
Income
£m
114.8
7.4
–
122.2
Income
£m
113.7
7.4
–
121.1|Expenditure
£m
(104.4)
(7.5)
–
(111.9)
Expenditure
£m
(103.5)
(7.5)
–
(111.0)
Expenditure
£m
(103.9)
(9.5)
–
(113.4)
Expenditure
£m
(102.9)
(9.5)
–
(112.4)|Investment
gain
£m
4.2
–
–
4.2
Investment
gain
£m
4.2
–
–
4.2
Investment
loss
£m
5.2
–
–
5.2
Investment
loss
£m
5.2
–
–
5.2|Transfers/
other loss
£m
3.9
(4.8)
–
(0.9)
Transfers/
other loss
£m
3.9
(4.8)
–
(0.9)
Other
loss
£m
(1.0)
–
–
(1.0)
Other
loss
£m
(1.0)
–
–
(1.0)|**31 December**
**2020**
**£m**
150.2
2.7
0.5|
|---|---|---|---|---|---|---|
|||||||153.4|
|||||||**31 December**
**2020**
**£m**
149.7
2.4
0.5|
|||||||152.6|
|||||||**31 December**
**2019**
**£m**
132.4
3.2
0.5|
|||||||136.1|
|||||||**31 December**
**2019**
**£m**
132.3
2.9
0.5|
|||||||135.7|
**Guide Dogs** Annual Report & Accounts 2020
80
## **Notes to the financial statements For the year ended 31 December 2020**
## 12. Fund balances continued
|**Restricted funds**
**Year ended 31 December 2020**
**Group**
**Restriction**
Location
Guide dog services
Veterans
Children’s services
Covid Job Retention Scheme
Other
**Year ended 31 December 2020**
**Charity**
**Restriction**
Location
Guide dog services
Veterans
Children’s services
Covid Job Retention Scheme
Other|1 January
2020
£m
1.0
0.1
1.5
0.3
–
0.3
3.2
1 January
2020
£m
1.0
0.1
1.5
–
–
0.3
2.9|Income
£m
4.3
2.0
–
0.4
4.3
0.8
11.8
Income
£m
4.3
2.0
–
0.4
4.3
0.8
11.8|Expenditure
£m
(4.4)
(2.0)
(0.4)
(0.4)
–
(0.3)
(7.5)
Expenditure
£m
(4.4)
(2.0)
(0.4)
(0.4)
–
(0.3)
(7.5)|Transfers
£m
–
–
–
–
(4.3)
(0.5)
(4.8)
Transfers
£m
–
–
–
–
(4.3)
(0.5)
(4.8)|**31 December**
**2020**
**£m**
0.9
0.1
1.1
0.3
–
0.3|
|---|---|---|---|---|---|
||||||2.7|
||||||**31 December**
**2020**
**£m**
0.9
0.1
1.1
–
–
0.3|
||||||2.4|
Accounts and financial statements 81
## **Notes to the financial statements For the year ended 31 December 2020**
|12. Fund balances continued
**Year ended 31 December 2019**
**Comparatives**
**Group**
**Restriction**
Location
Guide dog services
Veterans
Children’s services
Other
**Year ended 31 December 2019**
**Comparatives**
**Charity**
**Restriction**
Location
Guide dog services
Veterans
Children’s services
Other|1 January
2019
£m
1.0
0.2
3.6
0.3
0.2
5.3
1 January
2019
£m
1.0
0.2
3.6
–
0.2
5.0|Income
£m
2.7
3.5
–
0.8
0.4
7.4
Income
£m
2.7
3.5
–
0.8
0.4
7.4|Expenditure
£m
(2.7)
(3.6)
(2.1)
(0.8)
(0.3)
(9.5)
Expenditure
£m
(2.7)
(3.6)
(2.1)
(0.8)
(0.3)
(9.5)|Transfers
£m
–
–
–
–
–
–
Transfers
£m
–
–
–
–
–
–|**31 December**
**2019**
**£m**
1.0
0.1
1.5
0.3
0.3|
|---|---|---|---|---|---|
||||||3.2|
||||||**31 December**
**2019**
**£m**
1.0
0.1
1.5
–
0.3|
||||||2.9|
Restricted income comes primarily from legacies but also from other income streams. Most funds are utilised in the year of receipt as they are matched to activities already happening in the area. Blind Children UK reserves of £0.3m (2019: £0.3m) are treated as restricted.
## **Analysis of revaluation reserve (included within unrestricted funds)**
|Revaluation of properties for use by charity|**Group**
**2020**
**£m**
Group
2019
£m
2.7
2.7
2.7
2.7|**Charity**
**2020**
**£m**
Charity
2019
£m
2.7
2.7|
|---|---|---|
|||2.7
2.7|
**Guide Dogs** Annual Report & Accounts 2020
82
**Notes to the financial statements For the year ended 31 December 2020**
## 13. Financial commitments
At the end of the year the capital commitments and total of future minimum lease payments under non-cancellable leases for each of the following periods are:
|
non-cancellable leases for each of the following periods are:|||
|---|---|---|
|**Group**
Within one year
Between one year and five years
Beyond five years|**2020**
**£m**
2.1
1.1
–
3.2|2019
£m
0.9
0.7
–|
|||1.6|
## 14. Subsidiaries
The Association owns the whole of the issued share capital, or is the sole member of:
1. The Guide Dogs for the Blind Association (Trading Company) Limited (company registration number 1596945);
2. Blind Children UK (company registration number 3133018), GDBA Community Care Services Limited (company registration number 2735518);
3. Guide Dogs Limited (company registration number 2332629);
4. Guide Dogs UK Limited (company registration number 3252696); and
5. GDBA (Pension Fund Trustee) Limited (company registration number 1870871).
Blind Children UK owns the whole of the issued share capital of Blind Children UK (Trading) Limited (company registration number 4245581). Of these only the following traded in their own account in 2020:
- Blind Children UK raises funds for providing services to blind and partially sighted children and their families via the Guide Dogs programmes. This funding is passed to Guide Dogs in the form of a restricted grant.
- The Guide Dogs for the Blind Association (Trading Company) Limited is the charity’s trading subsidiary.
All companies in the group are domiciled in the United Kingdom and their registered offices are all: Hillfields, Burghfield Common, Reading, Berkshire RG7 3YG.
Accounts and financial statements 83
**Notes to the financial statements For the year ended 31 December 2020**
## 14. Subsidiaries continued
**A summary of the trading results and net assets for the year ended 31 December 2020 is shown below:**
|Incoming resources/turnover
Cost of generating funds/cost of sales
Gross profit
Other operating income
Distribution, selling and administration expenses
Operating profit/(loss) for the financial year
Donation to Guide Dogs
Profit/(loss) for the year
Reserves at start of year
Reserves at end of year
Current assets
Current liabilities
Net assets at end of year|**Blind**
**Children UK**
**2020**
**£m**
0.4
–
0.4
–
–
0.4
(0.4)
–
0.3
0.3
0.3
–
0.3|**Trading**
**company**
**2020**
**£m**
0.7
(0.3)
0.4
0.2
(0.7)
(0.1)
–
(0.1)
0.5
0.4
1.7
(1.3)
0.4|**Total**
**2020**
**£m**
1.1
(0.3)
0.8
0.2
(0.7)
0.3
(0.4)
(0.1)
0.8
0.7
2.0
(1.3)
0.7|Total
2019
£m
1.6
(0.6)|
|---|---|---|---|---|
|||||1.0
0.3
(0.5)|
|||||0.8
(0.8)|
|||||–
0.8|
|||||0.8|
|||||1.1|
|||||(0.3)|
|||||0.8|
**Guide Dogs** Annual Report & Accounts 2020
84
**Notes to the financial statements For the year ended 31 December 2020**
## 14. Subsidiaries continued
## **2019 comparatives**
|**2019 comparatives**||||
|---|---|---|---|
|Incoming resources/turnover
Cost of generating funds/cost of sales
Gross profit
Other operating income
Distribution, selling and administration expenses
Operating profit for the financial year
Donation to Guide Dogs
Profit for the year
Reserves at start of year
Reserves at end of year
Current assets
Current liabilities
Net assets at end of year|**Blind**
**Children UK**
**2019**
**£m**
0.6
–
0.6
0.1
–
0.7
(0.7)
–
0.3
0.3
0.3
–
0.3|**Trading**
**company**
**2019**
**£m**
1.0
(0.6)
0.4
0.2
(0.5)
0.1
(0.1)
–
0.5
0.5
0.8
(0.3)
0.5|**Total**
**2019**
**£m**
1.6
(0.6)|
||||1.0
0.3
(0.5)|
||||0.8
(0.8)|
||||–
0.8|
||||0.8|
||||1.1|
||||(0.3)|
||||0.8|
Guide Dogs has utilised the exemptions given by FRS 102 not to disclose transactions with related party undertakings which are wholly owned by the group.
In 2020 and 2019 Blind Children UK’s income was all granted to Guide Dogs for use on their children’s services.
Accounts and financial statements
85
**Notes to the financial statements For the year ended 31 December 2020**
## 15. Pension costs
## **Composition of the scheme**
The Association operates The Guide Dogs for the Blind Association Pension Scheme, which is a final salary pension scheme. The Scheme closed to new entrants on 31 March 2011 and closed to future accrual on 31 December 2012.
The Scheme is a registered funded pension scheme. The assets of the Scheme are held separately from the assets of the Association in trustee administered funds.
Contributions to the Scheme are assessed in accordance with the advice of a qualified actuary. Nil deficit contributions are required for 2020 under the Scheme’s agreed Recovery Plan, however, a discretionary contribution of £1.0m was paid (2019: £1.0 million).
The results of the actuarial valuation of the Scheme as at 31 December 2019 have been updated to 31 December 2020 by a qualified independent actuary.
## **Assumptions**
The major assumptions used by the actuary were:
|**Assumptions**
The major assumptions used by the actuary were:|||
|---|---|---|
||**2020**|2019|
|Discount rate|1.30%|2.00%|
|Rate of increase in salaries|n/a|n/a|
|Rate of increase in payment of pensions (RPI maximum 5%)|3.00%|3.00%|
|Inflation assumption (RPI)|3.00%|3.05%|
|Inflation assumption (CPI)|2.50%|2.15%|
|Life expectancies on retirement at age 60:|||
|Retiring today – males|28.6|26.3|
|Retiring today – females|27.1|28.5|
|Retiring in 20 years – males|31.1|27.8|
|Retiring in 20 years – females|29.7|30.1|
|Cash commutation|100% of|100% of|
||members|members|
||commute|commute|
||25%|25%|
86 **Guide Dogs** Annual Report & Accounts 2020
## **Notes to the financial statements For the year ended 31 December 2020**
|15. Pension costs continued
**Balance Sheet**
The assets in the plan were:
Equities
Properties
Bonds
Hedge funds
Insured pensions
Cash
**Total market value of assets**
**Present value of plan liability**
**Surplus in the plan**
Effect of the asset ceiling
Net pension fund deficit
**Analysis of the amount (charged)/credited to the Statement of Financial Activities**
Net interest cost and past service cost on the defined benefit obligation
Total amount charged within Net Income for the year
Experience gain arising on the plan’s assets
Experience (loss)/gain arising on the plan’s liabilities
Actuarial (loss)
Effect of asset ceiling
Actuarial (loss)
Total amount charged to the Statement of Financial Activities|**2020**
98.9
13.9
180.9
36.1
0.4
12.5
342.7
(334.6)
8.1
(8.1)
–
**2020**
**£m**
(0.1)
(0.1)
37.9
13.2
(54.3)
2.3
(0.9)
(1.0)|2019
93.6
13.9
150.9
45.1
0.4
6.3|
|---|---|---|
|||310.2
(300.4)|
|||9.8
(9.8)|
|||–|
|||2019
£m
–
–|
|||30.0
(0.3)
(34.4)
3.7|
|||(1.0)|
|||(1.0)|
Accounts and financial statements 87
**Notes to the financial statements For the year ended 31 December 2020**
## 15. Pension costs continued
## **Reconciliation of present value of plan liabilities and assets**
|**Reconciliation of present value of plan liabilities and assets**|||
|---|---|---|
|**Change in present value liabilities**
Present value of plan liabilities at start of year
Interest on pension liabilities
Past service benefits granted during the year
Actuarial loss on financial assumptions
Actuarial loss/(gain) on demographic assumptions
Experience (gains)/losses
Benefits paid
Present value of plan liabilities at the end of year
**Change in plan assets**
Fair value of plan assets at start of year
Interest income
Return on scheme assets excluding interest income
Employer’s contributions
Benefits paid
Fair value of plan assets at end of year|**2020**
**£m**
300.4
5.9
0.1
43.7
10.6
(13.2)
(12.9)
334.6
**2020**
**£m**
310.2
6.1
38.3
1.0
(12.9)
342.7|2019
£m
270.4
7.7
—
40.7
(6.3)
0.3
(12.4)|
|||300.4|
|||2019
£m
283.5
8.1
30.0
1.0
(12.4)|
|||310.2|
**Guide Dogs** Annual Report & Accounts 2020
88
## **Notes to the financial statements For the year ended 31 December 2020**
## 15. Pension costs continued
## **Five-year history History of funding position and experience gains and losses**
|Defined benefit obligation
Scheme assets
Effect of asset ceiling
(Deficit)
Actual return less expected return on plan assets
– amount
– percentage of plan assets
Experience gain/(loss) on plan liabilities
– amount
– percentage of the present value
of plan liabilities
Total (loss)/gain recognised in statement
of financial activities
– amount
– percentage of the present value
of the plan liabilities|**2020**
**£m**
(334.6)
342.7
(8.1)
–
37.9
11.0%
13.2
3.9%
(1.0)
0.3%|2019
£m
(300.4)
310.2
(9.8)
–
30.0
9.7%
(0.3)
0.1%
(1.0)
0.3%|2018
£m
(270.4)
283.5
(13.1)
–
(15.9)
5.6%
8.0
3.0%
(0.6)
0.2%|2017
£m
(298.6)
302.8
(4.2)
–
10.5
3.5%
4.8
1.6%
5.0
1.7%|2016
£m
(309.0)
300.2
–|
|---|---|---|---|---|---|
||||||(8.8)
61.1
20.4%
(5.9)
1.9%
(8.1)
2.6%|
Accounts and financial statements 89
## **Notes to the financial statements For the year ended 31 December 2020**
|16. Analysis of net assets between funds
**Group**
General
funds
£m
Tangible fixed assets
2.7
Fixed asset investments
51.2
Bank balances
11.2
Other assets and liabilities
20.3
85.4
**Charity**
General
funds
£m
Tangible fixed assets
2.7
Fixed asset investments
51.7
Bank balances
9.8
Other assets and liabilities
20.7
84.9
**2019 comparatives**
**Group**
Tangible fixed assets
Fixed asset investments
Bank balances
Other assets and liabilities
**2019 comparatives**
**Charity**
Tangible fixed assets
Fixed asset investments
Bank balances
Other assets and liabilities|Designated
funds
£m
33.5
15.0
–
16.3
64.8
Designated
funds
£m
33.5
15.0
–
16.3
64.8
General
funds
£m
2.7
62.8
6.3
12.3
84.1
General
funds
£m
2.7
63.3
5.7
12.3
84.0|Restricted
funds
£m
–
–
2.7
–
2.7
Restricted
funds
£m
–
–
2.4
–
2.4
Designated
funds
£m
31.7
–
–
16.6
48.3
Designated
funds
£m
31.7
–
–
16.6
48.3|Endowment
funds
£m
–
0.5
–
–
0.5
Endowment
funds
£m
–
0.5
–
–
0.5
Restricted
funds
£m
–
–
0.2
3.0
3.2
Restricted
funds
£m
–
–
–
2.9
2.9|**Total**
**2020**
**£m**
36.2
66.7
13.9
36.6
153.4
**Total**
**2020**
**£m**
36.2
67.2
12.2
37.0
152.6
Endowment
funds
£m
–
0.5
–
–
0.5
Endowment
funds
£m
–
0.5
–
–
0.5|Total
2019
£m
34.4
63.3
6.5
31.9|
|---|---|---|---|---|---|
||||||136.1|
||||||Total
2019
£m
34.4
63.8
5.7
31.8|
||||||135.7|
||||||**Total**
**2019**
**£m**
34.4
63.3
6.5
31.9|
||||||136.1|
|**2019 comparatives**
**Charity**
Tangible fixed assets
Fixed asset investments
Bank balances
Other assets and liabilities|||||**Total**
**2019**
**£m**
34.4
63.8
5.7
31.8|
||||||135.7|
**Guide Dogs** Annual Report & Accounts 2020
90
**Notes to the financial statements For the year ended 31 December 2020**
## 17. Notes to cash flow statement
**Reconciliation of net income/expenditure to net cash outflow from operating activities**
|Net income for the financial year
Investment gain
Investment income
Depreciation
Net gain on disposal of tangible fixed assets
Decrease in stocks
Increase in debtors
Increase/(decrease) in creditors
Adjustment for pension funding
Net cash inflow from operating activities|**2020**
**£m**
18.2
(4.2)
(0.9)
2.8
(0.1)
–
(4.8)
0.1
(0.9)
10.2|**2019**
**£m**
14.0
(5.8)
(1.0)
2.9
(0.7)
0.1
(6.3)
(0.3)
(1.0)|
|---|---|---|
|||1.9|
Accounts and financial statements
91
**Notes to the financial statements For the year ended 31 December 2020**
## 18. Comparative consolidated statement of financial activities Incorporating an income and expenditure account For the year ended 31 December 2019
|Notes
**Income and endowments from:**
1
Donations and legacies
Charitable activities
Other trading activities
Investments
Other income
**Total income**
**Expenditure on:**
2
Raising funds
**Charitable activities**
Provision of guide dogs’ services
Provision of other adult mobility services
Provision of other children’s services
Research and development
Advocacy and awareness
Total charitable expenditure
**Total expenditure**
Net losses on investments
**Net income for the year**
**Other recognised gains and losses:**
Actuarial loss on defined benefit pension scheme
**Net movement in funds**
**Reconciliation of funds:**
Fund balance brought forward at 1 January
**Fund balance carried forward at 31 December**|Unrestricted
funds
£m
100.8
1.4
10.7
1.0
0.9
114.8
37.7
43.4
7.8
4.6
0.6
9.8
66.2
**103.9**
5.2
**16.1**
(1.0)
**15.1**
117.3
**132.4**|Restricted
funds
£m
7.4
–
–
–
–
7.4
–
8.4
0.2
0.9
–
–
9.5
**9.5**
–
**(2.1)**
–
**(2.1)**
5.3
**3.2**|Endowment
funds
£m
–
–
–
–
–
–
–
–
–
–
–
–
–
**–**
–
**–**
–
**–**
0.5
**0.5**|Total
2019
£m
108.2
1.4
10.7
1.0
0.9|
|---|---|---|---|---|
|||||122.2|
|||||37.7|
|||||51.8
8.0
5.5
0.6
9.8|
|||||75.7|
|||||**113.4**|
|||||5.2|
|||||**14.0**|
|||||(1.0)|
|||||**13.0**
123.1|
|||||**136.1**|
**Guide Dogs** Annual Report & Accounts 2020
92
## **Major gifts and donations**
## Thank you
None of our work is possible without the support of so many. To those who pledged a gift in their will, sponsored a puppy, made a cash donation, took part in a sporting challenge event or raised money through any number of fundraising activities, we give you our sincere thanks.
Major gifts and donations
93
## **Trusts, grants, foundations and statutory support**
For their significant support, our thanks go to:
## Trusts
ShareGift
Miss B C Johnson Charitable Settlement
Mrs Maureen Boal Charitable Trust Northwood Charitable Trust
George W Walsh Seeing-Eye Dog Foundation
Audrey Wilson Charitable Settlement
Alan Chinery Charitable Trust
Hummingbird Charitable Trust
Broome Family Charitable Trust The TJH Foundation Hermitage Trust Charles Engelhard Foundation
**Guide Dogs** Annual Report & Accounts 2020
94
## Statutory Grant Bodies
Cambridgeshire Community Foundation and Microsoft Research Limited Community Fund – Aftercare sessions for guide dog owners
Libor Fund – Provision of guide dogs for veterans
National Lottery Community Fund NI – Reaching Out Supporting Families – Supporting Families NI BVSC – BAME Engagement Birmingham
National Lottery Awards for All Scotland – My Sighted Guide Glasgow Newcastle City Council – My Sighted Guide Newcastle
Liverpool City Council – My Sighted Guide Liverpool and keeping-in-touch calls
Scottish Government Section 10 – keeping-in-touch calls, My Sighted Guide and OMS
WCVA – VSEF – keeping-in-touch calls and new digital/online activities
NLCF Covid Community Fund – Technology webinars Glasgow County Council – Blindcraft – CYP Project in Scotland
## Major donors
For their significant support, our thanks go to:
Clive and Angela Gilchrist – long-time generous supporters of Guide Dogs
Miss Christine Cheney – for support to our wonderful dogs
Dr Alan Horan – for support to our Capital Appeal for Redbridge
Mrs Sarah Fuller – for support to buddy dogs, through funds from the Essex Trust Mrs Joan Mary Bates – for support to our Capital Appeal for Redbridge Mr Arnold – for support to Guide Dogs
Mrs Julia and David Schofield – for support to assistive technology for the vision impaired
Trusts, grants, foundations and statutory support 95
## **Trusts, grants, foundations and statutory support**
## National Corporate Partnerships
For their significant support, our thanks go to:
## **Partner**
Players of People’s Postcode Lottery
Pets at Home VIP Lifelines Scheme
Citi RSM Royal Canin Toyota (GB) plc Pet Plan UK AmazonSmile
eBay for Charity (in partnership with PayPal Giving Fund) Glencore International Gobeyond Partners GiveaCar Aunt Bessie Paterson Enterprises Ltd/Morris Lubricants
Booker Cash and Carry Brewdog Talacrest
**Guide Dogs** Annual Report & Accounts 2020
96
Guide Dogs Hillfields Burghfield Common Reading Berkshire RG7 3YG **guidedogs.org.uk**