••• Guide
Dogs
Annual Report
& Accounts 2023
“Life changers
I didn’t know anything about Guide Dogs. I didn’t realise all the different people that were out there to help me until I picked up the phone and got in contact.
Scott always wanted to be a farmer. But his life changed dramatically when he lost his sight. Now paired with guide dog Milo, Scott has the confidence to pursue a new career and is on the way to representing his country in Judo at the highest level of the sport.
“When I lost my sight, I lost everything. I lost the ability to be Scott, the confident independent Scott. I couldn’t be a dad properly anymore to my two daughters.
Before I had Milo I was stuck in the house contemplating lots of horrible things. I just thought I was useless. But now he’s physically saved my life on the streets from being knocked over. He’s saved my life from bad mental health. He is a life changer.
When I’m walking with Milo it’s like a weight has been lifted. I put all my trust in Milo because he is only focused on keeping me safe.”
## Contents
02. 04. We are Welcome
We are Guide Dogs
10.
18. Our people and places
Our services
28.
32. Looking to the future
Fundraising
49. Structuring and Corporate managing Guide Dogs[59. ] information
66. Accounts and Major gifts financial statements[102. ] and donations
06. 08.
Thank you to our volunteers
Our year in numbers
22.
26.
Campaigning for change
Raising awareness of our cause
38.
33.
Sustainability
Financial performance
61. Independent auditor’s report
02 We are Guide Dogs
## We are Guide Dogs
**We’re here to help people with sight loss live the life they choose. Children and adults. Friends and family. Whoever you are, our expert staff, volunteers and life-changing dogs are here to help you:**
## 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.
“Being able
Seema has always lived an independent life, but when her sight deteriorated, she had no choice but to rely on other people to get out. That was until she contacted Guide Dogs, and Dan, her Vision Rehabilitation Specialist, taught her how to use her long cane.
“I’d never really got the hang of using a long cane because I didn’t really feel ready to use it at that point. But I wanted someone who could enable me to be more independent.
The first few sessions with Dan were quite scary because I’d never been out on my own. But Dan’s a very gentle but assertive guy – he
gave me specific instructions about what I needed to do. After about four or five weeks working together, I was able to walk to the coffee shop on my own. And the whole experience was liberating – I hadn’t been out on my own for 15 years.
I describe Dan as my guardian angel. Being able to get from A to B changes your personality and belief in yourself – so you feel able to achieve other things in your life.”
04 Welcome letters from our Chairman and C E O
## Welcome
## **Letters from our Chairman and C E O**
The year in review was one of steady progress for the guide dog service, in which we successfully trained 469 fully qualified guide dogs and 64 buddy dogs. The Academy trained 80 Guide Dog Trainers and Guide Dog Mobility Specialists in the year, enabling us to deliver more guide dog partnerships.
Like many organisations, increased costs are impacting Guide Dogs, and the Board has implemented a programme of efficiencies and cost reductions to ensure future service provision. We are determined to continue helping all who are vision impaired, including the children and adults who use our range of services.
I also want to take this opportunity to highlight the hard work and achievements of Tom Wright, who retired at our A G M in September, during his nearly six years as Chief Executive of this charity, which included the very difficult period of Covid lockdown. We are delighted with our new C E O, Andrew Lennox, who since joining has placed service user experience and service improvement at the core of his priorities.
James Hambro Chairman, Guide Dogs Trustees
I myself will be stepping down after nine years as Guide Dogs’ Chairman in 2024. It has been a privilege and very enjoyable to be involved with such an exceptional charity. I wish the new Chair every success in the future.
05
Trustees’ report including the Strategic report and Directors’ report for the year ended 31 December 2023
From my first day in July 2023, I’ve been struck by how dedicated everyone is at Guide Dogs: the amazing staff, our wonderful volunteers and our fantastic donors. The feedback from those we support has also been incredible, and I have been very humbled by some of the stories I have heard and the generosity of time and support that I have observed.
Our teams have made tremendous progress in 2023, with the puppy breeding programme back to 2019 levels, and our partnerships growing by 20% against 2022 numbers. These achievements, coupled with the work our Habilitation and Vision Rehabilitation Specialists are doing to support adults and children who are blind or partially sighted, give a great deal for us all to celebrate.
Andrew Lennox Chief Executive Officer, Guide Dogs
We are fortunate enough to be in a good financial position at the end of 2023 but like so many people, communities, businesses and other charities, we are seeing significant headwinds with inflation, with the impact of the cost-of-living crisis, and wider societal shifts in work and volunteering.
In response to those challenges, Guide Dogs launched a Transformation review in 2023 to prepare us for the future. This work centres around service provision, volunteering, and delivery of improvement programmes, and we expect to fully implement it by the end of 2024. As we go forward we need to evolve to better support people with sight loss, and make the best use of every single pound that our incredible donors give to us.
Finally, I would like to thank everyone in our Guide Dogs community for all they have done in 2023, and I must thank them in advance for rising to the challenges that 2024 is going to bring. Without you, we absolutely could not help people with sight loss to live the life they choose.
06
Our year in numbers
## Our year in numbers
**The Trustees present their annual report (incorporating the Strategic Report) and the audited financial statements for the year ended 31 December 2023.**
Our life-changing guide dog partnerships:
469
new partnerships created.
## 3,478
qualified partnerships supported.
Our guide dogs of the future:
1,300+ puppies began their training journey.
## 31.5 weeks
average time to train a guide dog – reduced by 4 weeks.
## 3,000+
new volunteers recruited to help nurture and care for our amazing dogs.
## 80
new Guide Dog Trainers and Guide Dog Mobility Specialists training with our Academy.
> Trustees’ report including the Strategic report and 07 Directors’ report for the year ended 31 December 2023
## Supporting adults with sight loss:
## 6,177
training sessions on tech, travel and life skills delivered by Vision Rehabilitation Specialists.
## 932
My Sighted Guide partnerships supported.
## 1,500+
conversations supporting people waiting to be partnered with a guide dog.
## 533
new My Sighted Guide partnerships created.
## Supporting children and their families:
## 311
active buddy dog partnerships.
## 6,779
bespoke, large print books for children.
## 1,063 times
children and family members joined My Time to Play sessions.
## 500+
grants provided to support children with technology.
Expert information and advice:
## 2 million
clicks to access our digital information and advice.
## 54,599
phone calls to our Guide Line were answered.
08
Thank you to our volunteers
## Thank you to our volunteers
We simply wouldn’t be able to do what we do without our community of incredible volunteers. Every puppy cared for, phone answered, or pound raised by our volunteers makes a big difference.
Thank you for continuing to support Guide Dogs. Your dedication and enthusiasm enables us to make a positive impact and continues to change lives. We are truly grateful.
Over Over 17,000 volunteers million hours collectively volunteered
Over 20million
> Trustees’ report including the Strategic report and 09 Directors’ report for the year ended 31 December 2023
“
People ask if we’ll feel sad when the puppies leave, but how can we feel sad when we know they’re going to change someone’s life.” **Sarah, Breeding Dog Volunteer**
10 Our services
## Our services
**We understand that living with sight loss is different for everyone, so our services reflect that. From the very first enquiry, our experts talk and listen to people’s needs and aspirations and offer advice and provide support. We understand what is important and agree a plan that is right for each person.**
11
Trustees’ report including the Strategic report and Directors’ report for the year ended 31 December 2023
## “When I went on
“My Vision Rehabilitation Specialist, Sophie, kept in touch with me during the lockdowns and once they were lifted, she suggested we learn all my routes as though I already had a guide dog. We thought about places to cross and routes that would be suitable for a dog.
As her career as a vocal coach expanded, Taylor applied for her first guide dog in September 2019. Unfortunately, COVID-19 had other plans and her assessment was delayed. But Taylor says she never felt alone, with the support and training from her Vision Rehabilitation Specialist. And when she finally met her guide dog, the wait was totally worth it!
After almost two years, when I went on my matching walk with my beautiful Jilly I felt my world change. I walked faster, stood taller and couldn’t stop smiling at her. Since then, through training, we’ve gone from strength to strength as we navigate as one.
She’s allowed me to do things that I would never have felt comfortable or confident doing with a cane. Our partnership fills me with such hope and excitement because we are already a dream team.”
12 Our services
## **Guide dog service**
We placed over 1,300 puppies with volunteer puppy raisers.
In 2023, we created 469 new guide dog partnerships, up from 387 in 2022.
In 2023, our focus was very much on the guide dog service. There was a big increase in the number of puppies being born, raised and going into training, and we ramped up our volunteer recruitment to find more much-needed puppy raisers and fosterers to care for these puppies and dogs. As a result we created 469 new guide dog partnerships, meeting our target for 2023. While the total number of partnerships reduced slightly to 3,478, as anticipated.
Our breeding programme returned to levels not seen since 2019, and we placed over 1,300 puppies with our volunteer puppy raisers to begin their journey to become guide dogs. Our selection process for dogs to join the breeding programme continues to be rigorous and comprehensive in terms of both health and temperament, and we accepted 90 of our very best dogs.
We recognise that too many people still have to wait too long to be matched with a guide dog. As of the end of 2023, 71% of people waited two years or less to be matched with their guide dog, and 38% were matched within one year. However, every individual’s needs and circumstances are different. This means that some people will be matched relatively quickly, while for others, it may take longer to find the specific dog to suit them. What’s important is finding the right dog, so that the partnership lasts.
We continue to train our dogs in the most effective way and thanks to our staff and volunteers, our guide dog training times reduced by four weeks to an average of 31.5 weeks.
13
Trustees’ report including the Strategic report and Directors’ report for the year ended 31 December 2023
Our training methods are based on the highest level of dog welfare and prioritise the wellbeing and safety of the guide dog and their owner. Underpinning everything is getting to know each dog as an individual and putting their likes, dislikes and preferences at the centre of their care and training. These are the principles behind our training, which includes the standard use of marker training in conjunction with positive reinforcement. This welfare-centric, rewards-led approach is evidence-based and animal training organisations across the world now widely consider it to be the most ethical, efficient and effective method.
“Meeting my guide dog for the first time was an incredible moment. I remember the anticipation and excitement of what my life will turn out to be.”
**Lena, guide dog owner**
By the end of 2023 our success rate for qualifying dogs had climbed above 60%, from a low of 47%, and reached over 70% in some areas.
14 Our services
## **Services for adults**
Our experts work with adults who have a vision impairment to understand their individual needs and develop a personalised package of support.
Our team of Vision Rehabilitation Specialists (V R S) are trained to help people with a wide range of life skills and adaptations within the home, additional cane training, travel and transport planning, route reinforcement, or advice and training on accessible technology.
In 2023 our V R S had over 1,500 conversations with people who were waiting to be matched with a guide dog. Over a third of these conversations led to us providing additional support, resulting in 6,177 individual training sessions.
In 2023, nine trainee V R S qualified, and we’ve recruited a further nine trainees who will qualify in 2026, ensuring we can continue to deliver this vital service for everyone who needs it.
In 2023 we delivered our sighted guide training to 5,934 people, including members of the public, friends and family and organisations. Our partnerships with leisure and tourism organisations, such as Virgin Atlantic, have enabled us to reach more people, and make visitor and travel experiences more inclusive and accessible.
This was another challenging year for our My Sighted Guide service, which has been hit by a fall in volunteer numbers due to nationwide changes in patterns of work and volunteering. In 2023 we supported 932 My Sighted Guide partnerships.
**----- Start of picture text -----**
We delivered
**----- End of picture text -----**
6,177 individual training sessions to improve people’s mobility and living skills.
As we find it increasingly difficult to deliver our My Sighted Guide service in a fair and consistent way, we have taken the difficult decision to close the service by the end of 2024. Instead of matching individual partnerships, we will refocus our resources to train groups of people and raise awareness of the benefits of providing sighted guiding support. Our aim is to make sighted guiding as familiar as first aid, so when a person with a vision impairment goes out they can reasonably expect that someone will have the skills to help them, if they need it.
From the moment I phoned Guide Dogs they were absolutely superb. It was such a personalised service and it felt like I really mattered and that they genuinely wanted to make my life easier.” **Lena, guide dog owner**
16 Our services
## **Services for children, young people and families**
For children with a vision impairment and their families, early intervention can be life changing.
Delivered by our Habilitation Specialists, our My Time to Play service helps young children with a vision impairment and their families develop a broad range of skills through play. In 2023, we delivered 39 programmes across the U K with children and family members attending more than 1,000 times.
We strengthened support for families with our family days and events, and this year we provided fun family experiences for more than 1,000 people, including events at West Bromwich Albion F C and Chester Zoo.
Our Specialist Education Support team offers information and advice tailored to a child’s needs and helps families fight for support at school, college or nursery, to ensure their educational development.
“It’s so nice for Rex to comfortably read to me with a real book in front of his face rather than crunched over with a magnifier.”
**Lorna, Rex’s mum**
Our Custom Eyes Books give children with a vision impairment the chance to read a printed book just like their friends, and in 2023, we delivered more than 6,700 accessible books to families.
We’ve combined our Tech for All service with our tech grants and mainstream technology so that advice and funding are available in one place. Through these personalised programmes we have helped more than 500 children develop creativity, life skills and ultimately, confidence and independence.
Our buddy dog service, which helps children’s self-confidence and wellbeing, continues to reach more children and young people. We celebrated our 300th partnership in 2023, with 64 buddy dogs placed with families this year.
17
Trustees’ report including the Strategic report and Directors’ report for the year ended 31 December 2023
## **Digital services**
For many people who have received a diagnosis, the first place they look for information and advice about their vision impairment is online.
We work closely with experts across Guide Dogs to create authoritative digital content and make it available through our website 24/7.
We continue to offer information and advice to people with a vision impairment, as well as their friends and family, through our eye health pages, along with more specific advice for service users such as caring for a guide dog or maintaining independent living skills while waiting for a new guide dog.
In 2023 people accessed this valuable information and advice over 2 million times.
Technology is a big part of our everyday lives and using the right assistive technology can make the world of difference. In partnership with other sight loss charities, we are developing a new online resource to help people with a vision impairment select suitable accessible devices, apps and software from the wide range available.
18
Our people and places
## Our people and places
**It is our people who make what we do possible. The expertise, compassion and unwavering commitment from both our staff and volunteers means that we can continue to help people with sight loss live actively, independently and well.**
“Margot is fantastic
At one year old, Margot is one of the youngest children supported by Guide Dogs. She was born with a rare condition meaning her eyes and optic nerves never developed. Worried about her future, her parents Laura and John reached out to Guide Dogs.
“After Margot received her diagnosis, everything was very medical, but here in our home life John and I needed support as parents. We were acutely aware that Margot needed additional support. I thought that Guide Dogs was simply about guide dogs, I didn’t realise how much the charity does.
John made a referral and a few days later we received a phone call from Kate, a Senior Habilitation Specialist. Then a week later she came straight out, and she said, ‘It’s going to be okay. Margot is going to be okay’.
With Kate’s help, Margot is doing things today that I thought she would never even be able to do in her whole life. The fact that she can already do them at aged one is massive.
Knowing that the support from Guide Dogs for Margot is there right from her being nine weeks old though to adulthood is a huge relief.”
20 Our people and places
## **Valuing our people**
## More technical staff recruited and trained through Academy
We’ve invested in our Guide Dogs Academy to recruit, train and retain our technical staff. Our Academy is now established across 15 Guide Dogs sites and we currently have over 80 Guide Dog Trainers and Guide Dog Mobility Specialists in training. These learners will move into teams and help to create new partnerships in the years to come, with further recruitment planned over the next three years, to ensure a strong pipeline for our specialist workforce in the future.
## Systems to support our work
We want to set Guide Dogs up for the next decade of growth and give everyone the best tools to help the greatest number of people.
In support of this vision, the transformation of our donor and volunteer management and income processing is entering its final stages, and is set to be introduced with a phased implementation between quarter 4 2024 and the end of quarter 1 2025, enabling us to work more efficiently, improve our data management and increase our performance.
21
Trustees’ report including the Strategic report and Directors’ report for the year ended 31 December 2023
## Strengthening our volunteer community
We could not provide our life-changing services without the extraordinary dedication and support of our volunteers, who are essential to the process of nurturing our dogs and supporting our fundraising groups.
We rolled out an extensive recruitment effort in 2023, which included showcasing volunteer roles in the national and local media, and working with our celebrity ambassador Faye Winter, a former fosterer who has provided a home for a total of six dogs in training.
We also welcomed a visit to our Reading Hub from our Patron, H R H The Duchess of Edinburgh, as part of the Coronation celebrations for The Big Help Out.
All this work contributed to a record-breaking number of volunteer applications, with nearly 9,000 puppy raiser applications, almost 3,000 applications for a fosterer role and more than 300 people who applied to look after our guide dog mums and dads in our breeding programme.
22
Campaigning for change
## Campaigning for change
**Our campaigning work advocates for the rights of people who are blind and partially sighted, and we work hard to remove barriers and champion best practice to ensure they can live actively, independently and well. We would not be able to do the work we do without our 35,000 incredible campaign supporters across the U K.**
“I don’t think my life
see that, no matter the struggles I’d had before with Carlo by my side I’d have what I needed to carry on.
Charles is a passionate disability rights activist and volunteer for Guide Dogs. At university, as his eyesight worsened, Charles was becoming a recluse. But after being matched with his guide dog the pair became the ‘dynamic duo’ on campus.
“I applied for a guide dog when I was in my second year at university. When I was matched with Carlo in 2016 it felt like all the jigsaw pieces had fallen into place. And I could
I also learnt in my first few years of being partnered with Carlo the barriers that can exist, and I’ve had to face things like access refusals from taxis. I went to the media with my experiences, and I was proud to be seen as someone who would stand up for disabled people.
I don’t think my life would’ve been the same without Carlo, he has given me so much confidence and shown me that my sight loss doesn’t define me as a person.”
24 Campaigning for change
## **Pavement parking**
Vehicles obstructing footpaths and pathways cause huge difficulties for people with a vision impairment and often their only alternative is to step into the road.
In September we launched a campaign calling on the Government to crack down on dangerous pavement parking. Our new research found just under three-quarters (72%) of people said pavement parking is common in their area.
Laws limiting pavement parking have existed in London since the 1970s, and thanks to our campaigning the Scottish parliament introduced new laws at the end of 2023, but more needs to be done.
## **Plans to close ticket offices reversed**
In 2023 we worked alongside other charities and organisations to call on the Government to rethink the proposal to close ticket offices, citing the impact on disabled people’s ability to travel independently.
Our campaign was successful, and in November the Government took action to ensure train operators withdrew their proposals to close train ticket offices in England because they failed to meet the needs of serving passengers.
> Trustees’ report including the Strategic report and 25 Directors’ report for the year ended 31 December 2023
## **Talking buses**
In 2023 we celebrated a major landmark moment in improving the accessibility of local travel for people with sight loss after a significant win for our long-standing Talking Buses campaign. The Department for Transport introduced measures that will see all buses in Great Britain fitted with audio-visual (A V) equipment by October 2024, to help passengers know where they are on their journey and where to get off.
“I have gotten off too early and too late for my stop, and it’s a nightmare trying to work out where you are.”
## **Riley, guide dog owner**
## **Working in partnership**
Visionary, a membership organisation made up of over a hundred local sight loss charities and national partner organisations, held their annual conference for everyone within the sight loss sector to come together to share ideas and best practice. Expert speakers from across Guide Dogs led a number of sessions including vision rehabilitation,
national and regional campaigning and providing holistic services for children and young people and their families.
Andrew Lennox joined a panel of other Chief Executives to highlight the work of the V I Charity Sector Partnership that has contributed to effective joint working.
26
Raising awareness of our cause
## Raising awareness of our cause
**By raising awareness of our life-changing work we can reach more service users and drive donations. Our advertising and communications explain what we do through real stories of people who have experienced the benefits first-hand.**
Trustees’ report including the Strategic report and 27 Directors’ report for the year ended 31 December 2023
In March 2023, we launched a new advertising campaign which centred on the story of two brothers growing up together, one of whom has a vision impairment.
Our new brand advertising campaign encouraged the public to engage emotionally with sight loss as a cause and raised awareness of the range of services we offer from birth to older age.
Working with B B C journalist Sean Dilley, we were able to produce several films for B B C Breakfast following his experience as his guide dog retired, and highlighting the need for more volunteers to get our services back on track.
Channel 5 commissioned a four-part docu series Puppy School for Guide Dogs. From volunteers and staff to our dogs in training and new partnerships, the series told the story of the hard work that goes into our dogs and the incredible work our volunteers do, as well as providing hours of light-hearted entertainment to over a million viewers who tuned in to the first episode.
In October, actor Martin Clunes presented a special documentary called A Dog Called Laura on I T V1. The feel-good programme followed Martin as he adopted retired guide dog Laura from fitness guru and service user Jaina Mistry. While Jaina waited to be matched with her new guide dog, Martin met the dedicated volunteers and staff responsible for raising and training our life-changing dogs.
28 Fundraising
## Fundraising
**In a year when economic conditions and the effects of rising inflation have continued to challenge all of us, we are ever grateful for the generosity of our valued supporters and volunteers – many of whom have been by our side for many years.**
Whilst we relish face-to-face fundraising at events, we are also looking at ways that, where appropriate, we can move to digital based communications to reduce our carbon footprint and allow us to bring our cause to a wider audience. We remain committed to ensuring our fundraising is engaging and inspiring, while delivering it in the most ethical and cost-effective way.
We invite and incorporate supporter feedback into our communications and fundraising offers to ensure that we continue to meet and exceed donor expectations.
> Trustees’ report including the Strategic report and 29 Directors’ report for the year ended 31 December 2023
## **Legacies**
Legacies change lives for many years to come and we are always incredibly grateful to our supporters who remembered us with a gift in their Will. Their memory lives on through the life-changing transformation that their gifts enable us to deliver.
The strength of our legacy portfolio remains testament to our ongoing efforts to increase awareness of our work. We were delighted that 2023 enabled us to host many more regional talks and events to bring our supporters closer to our cause and enable them to find out first-hand about the benefits of leaving a gift in a Will.
“My guide dog Wendy has helped me believe in what I can achieve.” **Hannah, guide dog owner**
## **Sponsoring and naming a guide dog puppy**
Our Sponsor a Puppy scheme has a growing number of loyal donors, with supporters able to immerse themselves in their puppy’s world, in a wonderful variety of ways, in print or online.
Through our U K wide Name a Puppy scheme, supporters – individuals, groups and corporates – have the opportunity to name a puppy in addition to following their journey.
30 Fundraising
## **Community fundraising and events**
Our wonderful community of fundraising volunteers and staff are crucial in enabling us to raise money across the U K and we were delighted with the growth of our face-to-face events in 2023.
Despite the sector wide challenges of recruiting volunteers, our teams have grown income year on year through a variety of new initiatives and annual favourites.
These included our new schools campaign Fund Race. Launched in 2023, Fund Race highlights the importance of inclusivity through an accessible school sports day challenge – raising awareness of our work with children and young people, whilst putting a unique and fun spin on a traditional school event. Participation in the T C S London Marathon, Great North Run and Kilt walk increased this year, whilst our involvement with the London Skyscraper Challenge brought new supporters to our cause.
Thank you to all our donors and partners for your donations, participation and continued support which enables us to deliver our vital services.
> Trustees’ report including the Strategic report and 31 Directors’ report for the year ended 31 December 2023
32
Looking to the future
## Looking to the future
## **We continue to invest to be fit for the future.**
As well as updating our ways of working and evolving our training methods, we will continue to invest in our people, our systems and in our infrastructure. To address this we have designated funds amounting to £46.7 million (2022: £52.4 million).
In 2023 we invested £20.5 million (2022: £20.0 million) in line with these plans. The Redbridge site providing training facilities for 70 dogs will be operational in Autumn 2024, a new donor and volunteer management and income processing system is set to be introduced with a phased implementation between quarter 4 2024 and the end of quarter 1 2025, and we opened two in-house vet practices in 2023 providing services to dogs within the vicinity of our National Centre and Reading Hub. In addition, we’ve continued to develop the Guide Dogs Training Academy, with a total of 63 individuals currently training with us. We’ve continued to work on our transformation activities focusing on designing guide dog and volunteering services fit for the future.
Designated funds are:
## £24.4 million
Properties fit for our service users, our dogs and our communities (2022: £20.0 million).
## £11.0 million
Improving guide dog capabilities (2022: £16.2 million).
## £9.6 million
Electrification of our van fleet (2022: £9.6 million).
## £1.7 million
Technology and innovation (2022: £6.6 million).
Trustees’ report including the Strategic report and 33 Directors’ report for the year ended 31 December 2023
## Sustainability
**As one of the U K’s leading charities, we recognise the urgent need for environmental sustainability. We know climate change and global warming are having adverse effects for us all including people living with sight loss and the future of our operations.**
This is why we are taking proactive steps to minimise the negative impacts that may result from our activities. We are also broadening the scope of our environmental sustainability considerations and enhancing our sustainability strategy, to ensure it is fit for the future. Alongside this we are continuing our comprehensive data monitoring to track and report progress.
At Guide Dogs, we’re focused on ensuring the sustainable changes we implement are inclusive, appropriate and accessible for people with sight loss. To get this right, we’re working closely with staff and service users with lived experience of vision impairments. We want to champion this within our organisation as we’re aware sustainability measures don’t always consider everyone.
## Environmental, Social and Governance at Guide Dogs
Guide Dogs has started to map a long-term sustainability strategy and measurement through Environmental, Social and Governance (E S G) targets. We are seeking guidance from external sources and following a five step E S G framework.
Informing our direction and aims, we have taken the opportunity to consult with our stakeholders to generate a materiality study. Preliminary engagement work has focused on attitudes and opinions towards sustainability through an external U K survey with other charities and an internal staff survey.
Both surveys have generated insightful and positive findings; we will engage with additional internal stakeholders shortly and we will repeat these surveys year on year.
Our E S G strategy will continue to align with the United Nations Sustainable Development Goals and we will weave our aspirations into everything we do from our procurement approach to the management of our estate and assets. We will track progress against targets and report internally and externally. We are pleased to be undertaking this new and right challenge for sustainability at Guide Dogs.
34 Sustainability
## **Streamlined Energy and Carbon Reporting (S E C R)**
Over the past few years, we have been working to understand our environmental impact and the carbon footprint of the organisation. Currently we are tracking and reporting Scope 1 and 2 as well as some further data in Scope 3. All figures and commentary have been independently reviewed by Alan Ford of Auditel Consulting.
## The methodology for reporting
## Reporting organisation
The Guide Dogs for the Blind Association
## Person responsible
Sustainability and Energy Manager
## Reporting period covered
1 January 2023 – 31 December 2023
## Baseline year
2019
## Organisational boundaries
Financial control approach, whereby the company accounts for 100 percent of the greenhouse gas (G H G) emissions over which it has control.
## Reporting methodology
G H G Protocol Corporate Accounting and Reporting Standard and the 2019 U K Government Environmental Reporting Guidelines, and U K Government G H G Conversion Factors for Company Reporting 2023.
## Data sources
- [Energy data (Electric, Gas, Bio mass, Gas oil) ] – Guide Dogs utilities supplier invoices or landlord invoices.
- [Fuel purchased (allocated and pool cars) ] and Hire Car data – Guide Dogs Commercial Fleet Services provider.
- [Grey Fleet – Guide Dogs finance mileage ] claim reports.
## Operational scope
Scope 1 and 2 emissions and Scope 3 emissions related to employee use of their own vehicle and hire cars.
## Intensity Ratio
t C O₂e per full-time equivalent employee. t C O₂e energy used per average square metre of buildings.
35
Trustees’ report including the Strategic report and Directors’ report for the year ended 31 December 2023
The below table summarises the emissions by activity.
|Type of emissions
and activity
Scope 1Gas
Scope 1Bio mass
Scope 1Gas oil (direct billed)
Scope 1Gas oil (indirect billed)
Scope 1Fuel purchased
(allocated/pool vehicles)
Scope 2Electricity
(direct billed)
Scope 2Electricity
(indirect billed)
Scope 3Grey fleet
Scope 3Hire car
Total (Location based)
Remove Scope 2
Location based
Electricity (direct billed)
Add Scope 2 Market based
Electricity t C O₂e saving
Total (Market based)|2023
k W h
2,568,185
276,587
1,041,530
45,268
3,744,659
2,187,578
185,910
2,597,999
611,139
13,258,855
(2,187,578)
-
11,071,277|2023
t C O₂e
470
3
267
12
895
453
38
594
136
2,868
(453)
-
2,415|2022
k W h
3,135,212
520,158
366,986
78,227
4,411,498
2,092,550
141,921
2,201,979
165,474
13,114,005
(2,092,550)
-
11,021,455|2022
t C O₂e
572
5
94
20
1,063
405
27
512
40
2,738
(405)
-
2,333|2019
k W h
3,681,550
1,110,939
247,053
64,905
6,153,889
2,337,472
121,670
2,194,835
392,309
16,304,622
-
-
-|2019
t C O₂e|
|---|---|---|---|---|---|---|
|||||||677|
|||||||17|
|||||||63|
|||||||17|
|||||||1,505|
|||||||597|
|||||||31|
|||||||522|
|||||||93|
|||||||3,522|
|||||||-
-|
|||||||-|
The below table summarises intensity ratios per employee and per square metre.
|Intensity ratios
1 – Average number of employees (F T E)
t C O₂e per employee (location)
t C O₂e per employee (market)
2 – Average square metre
t C O₂e per square metre (location) (Calculation
only includes ‘building associated’ emissions)
t C O₂e per square metre (market)|2023
1,745
1.64
1.38
36,635
0.034
0.022|2022
1,590
1.72
1.47
34,070
0.033
0.021|2019
1,392
2.55
Not available
31,377
0.045
Not available|
|---|---|---|---|
36 Sustainability
## **Streamlined Energy and Carbon Reporting (S E C R) commentary**
Our carbon footprint remains stable and is still below our baseline year and marginally higher than in 2022. Our property estate has again increased in size, accounting for a rise in direct and indirect energy consumption. As we monitor this change, we have seen an increase of 95,028 k W h in direct billed electricity and 43,989 k W h in indirect billed electricity. However, we are pleased to continue a year-on-year decrease in gas usage in 2023, with a resulting 567,027 k W h or 102 t C O₂e saving, despite an increased estate footprint.
and 2% against our baseline, an increase of 324% versus 2019. The boiler was fixed in August 2023, and we are exploring diversification of our bio mass and gas oil energy to limit future challenges and stabilise carbon emissions.
Guide Dogs operates within the Energy Savings Opportunity Scheme (E S O S), with phase three completed across 2023. As part of this work we conducted energy, buildings and transport audits to identify opportunities to increase efficiencies across the estate and fleet.
led to an overall reduction being reported as private mileage accounted for 23.8% of total miles reported.
We successfully installed electric vehicle (E V) charge points in 2023 at two new locations adding eight charge points, with sixteen soon to be operational at our new Redbridge site. Plans are in development to continue the rollout of charge points, in-line with the introduction of electric cars to the fleet.
Our energy contract with Eco tricity, who supply 100% renewable energy and carbon neutral gas, has enabled us to again include a market-based carbon total with a saving of 453 t C O₂e. Additionally, two sites have solar panels, with three more renewable energy projects planned to be operational in 2024.
Our gas oil energy consumption for 2023 increased owing to a faulty bio mass boiler. Our direct billed gas oil increased to 9% of our total carbon emission compared with just 3% in 2022
Our grey fleet mileage has increased against the baseline and previous years. We saw a small increase in overall total fuel litres purchased for allocated and pool vehicles. However, the removal of private miles as methodologies and data were refined and updated has
Trustees’ report including the Strategic report and 37 Directors’ report for the year ended 31 December 2023
## **Disclosure summary, exclusions and looking forward**
For greater transparency we are communicating disclosures, limitations and corrections for the first time as part of this reporting period. Previously there have been changes in knowledge, methodology and assumptions made in S E C R reporting. Reporting methodology has now been documented, to ensure consistent reporting for future reports.
For our Scope 1 and 2 reporting, due to delayed onward billing by our landlords, for some utilities we have referenced 2022 data for the missing periods to complete the 2023 report. Our market-based carbon total only focused on our own energy purchasing rather than our full estate and we are also missing the reporting of man-made fluorinated gases (F-gas) from Scope 1.
In our Scope 3 reporting, grey fleet calculations use costs rather than mileage by fuel type; grey fleet calculations have been consistent across yearly reporting. As a result, mileage has been estimated using the government pence per mileage allowance figure and the Department for Transport table V E H 0 2 0 3 to determine the ratio between diesel and petrol fuel types.
Starting in 2022, we recalculated our hire car usage as some mileage data was missing from supplier reports; we used average miles travelled per day. As part of this calculation, we used net calorific value (C V) to calculate the k W h conversion for our hire cars, however, this does not match the rest of the report which focuses on gross C V. This year, we decided to calculate the figure using gross C V for this and future reports. Our k W h for our hire cars and overall total has therefore increased compared with previous years.
Looking to the future we have identified improvements to address the above limitations and exclusions. With our landlords, we plan to survey to understand their energy and carbon activities. The implementation of a new travel and expense system in 2023 will enable mileage to be captured directly rather than estimated. Our aim, also next year, is to start recording our F-gas emissions to add to our Scope 1 reporting and voluntarily report on further Scope 3 travel emissions.
38
Financial performance
## Financial performance
**The 2023 result is a surplus of £3.2 million (2022: £3.4 million). The deficit before investment returns is £0.3 million (2022: surplus of £13.7 million). Income has improved by £2.7 million whilst costs increased by £16.7 million owing to the impact of inflation and the continued expansion of services.**
Annual Report and Accounts 2023 39
## Cost pressures and transformation
To ensure that we protect the life-changing services provided by Guide Dogs for the future, we commenced a transformation programme early in 2023, with the aim of developing a sustainable operating model for the guide dog service, enhancing the volunteer experience and creating an environment that embraces innovation. The scope and urgency of the transformation grew during 2023, as we witnessed the impact of the cost-of-living crisis on our service users, suppliers and employees. Overall costs increased by £16.7 million, of which over £6.0 million is owing to inflationary pressures.
We announced organisational changes in April 2024 which seek to achieve the original aims of the transformation, along with increasing revenue and reducing costs to eliminate the forecasted £20.0 million shortfall in 2026. It is expected that 160 redundancies will occur in 2024.
The transformation will continue to build on the improvements in dog training times seen in 2023 with the objective of reducing service user waiting times. However, waiting times will not start to reduce until 2025 as it takes over two years for our puppies to grow and be trained as guide dogs. Changes to our sighted guiding services, including closure of My Sighted Guide, are discussed on page 14.
## 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.
After assessing the impact of income reduction risks, general inflation, technical resource constraints and supply chain inflation, the Trustees have not identified any material uncertainties and have concluded that they have 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. Therefore, the Trustees have continued to prepare the financial statements on a going concern basis.
## Income
Income in 2023 totalled £144.7 million (2022: £142.0 million). The major elements of our income are as follows:
Donor-based income and legacies include all types of income that are made on a voluntary basis. Donations totalled £53.2 million in 2023 (2022: £53.7 million). Within this, Sponsor a Puppy income reduced slightly to £45.5 million (2022: £46.2 million) and additional acquisition activity has commenced to attract new donors.
Legacy income in 2023 totalled £67.9 million (2022: £66.3 million). Notifications have remained stable and include a higher number of larger legacies when compared with 2022.
Community Fundraising teams have been fully engaged in 2023 and income has increased to £7.1 million (2022: £6.2 million).
Corporate income increased to £6.2 million (2022: £4.9 million) driven by donations to support the property strategy and increasing our corporate partners across the U K.
Other income in 2023 totalled £10.3 million (2022: £10.9 million). This includes income from Charitable Activities, Other Trading Activities and Investments. As the draw for the 2023 Christmas raffle took place in January 2024 income amounting to £1.2 million (2022: £nil) has been deferred to 2024.
## Expenditure
Expenditure in 2023 totalled £145.0 million (2022: £128.3 million). Direct costs have increased by £11.1 million, principally from the inflationary rise in service costs to fulfil commitments to our existing beneficiaries, increased donor acquisition activity and supporting growing dog volumes. Support costs have grown by £5.6 million. The growth in support costs is principally to complete the new donor management and income processing system,
40 Financial performance
to provide capabilities to assist with the transformation of Guide Dogs and capture all governance costs together.
## Costs of raising funds
Expenditure in 2023 totalled £36.7 million (2022: £32.6 million). Allocated support costs were £4.0 million (2022: £3.1 million). Acquisition activity increased in 2023 principally in the latter half of the year; the impact on income is expected to materialise in 2024.
## Costs of providing the guide dog service
Expenditure in 2023 totalled £73.9 million (2022: £63.8 million). Allocated support costs were £14.9 million (2022: £11.6 million). The Guide Dog Training Academy has continued to expand with the recruitment of a further 13 trainees and additional resources have been engaged to help manage the growing dog population which stands at 7,424 as at December 2023 (December 2022: 7,234). The number of dogs being trained has also increased to 513 as at December 2023 (December 2022: 396).
## Costs of providing other adult services
Expenditure in 2023 totalled £12.0 million (2022: £9.3 million). Allocated support costs were £3.0 million (2022: £1.7 million). Vision Rehabilitation Services have been expanded to support the journey towards a guide dog partnership.
## Costs of providing our children’s services
Expenditure in 2023 totalled £9.5 million (2022: £10.0 million). Allocated support costs were £2.3 million (2022: £3.1 million). The My Time to Play product has now been launched as a standard service and technical habilitation staff increased to 75 as at December 2023 (2022: 67), although the number of devices issued under the Tech for All banner reduced to 359 (2022: 2,500) as demand stabilised following the 2021 launch.
## Advocacy and awareness
Expenditure in 2023 totalled £12.5 million (2022: £11.9 million). Allocated support costs were £2.1 million (2022: £1.2 million). Includes integrated advertising to drive awareness and legacy donations, and reach more people with sight loss.
## Net losses and gains on investment assets
Our investment portfolio generated net gains of £3.5 million (2022: losses of £10.3 million) owing to higher interest rates and improved market conditions.
## Other recognised gains and losses
Net actuarial charges of £nil (2022: £1.0 million) were recognised relating to the defined benefit pension scheme.
## Funds
Funds are equivalent to net assets and include investments and cash amounting to £96.7 million (2022: £104.5 million). These are discussed in our financial reserves policy. Funds increased by £3.2 million (2022: £2.4 million) to £202.0 million (2022: £198.8 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 2023 unrestricted funds amounted to £192.6 million (2022: £191.2 million).
Unrestricted funds comprise of two types of reserves: general and designated funds.
## General funds
General funds can be used by the Trustees for any purpose. At the end of 2023 general funds amounted to £98.8 million (2022: £96.0 million).
## Designated funds
Designated funds are funds set aside by the Trustees for specific purposes. Fixed assets amounting to £47.1 million (2022: £42.3 million) are designated owing to their operational importance to the ongoing training of future guide dogs.
> Annual Report and Accounts 2023 41
A further fund of £46.7 million (2022 £52.4 million) has been designated to provide future guide dog training facilities, continue to train the next generation of Guide Dog Trainers and Guide Dog Mobility Specialists through our Guide Dogs Academy, transition our vehicle fleet to electric vehicles and complete the transformation activities. All designated funds are expected to be utilised within the next five years.
## Restricted funds
These are unexpended funds that have been donated to Guide Dogs with specific conditions attached to their use. As of 31 December 2023 these funds totalled £8.8 million (2022: £7.0 million). The majority of the restrictions relate to legacy accruals amounting to £5.3 million (2022: £4.8 million), donations with location restrictions £1.4 million (2022: £0.9 million) and capital appeals £0.8 million (2022: £nil).
## 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 2023 these funds totalled £0.6 million (2022: £0.6 million).
## Financial reserves policy
Our financial reserves policy seeks to ensure that reserves are maintained at a level that enables the Guide Dogs 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 fall due.
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 short-term volatility in income and inflation. We therefore hold funds in reserve to ensure that we can meet our service delivery plans in the face of such fluctuations.
Reserve thresholds are reviewed on a three-year cycle; the next formal review will take place in 2024, however an interim review has been undertaken owing to volatility in the current geo-political environment.
Cash resources, defined as investments and cash, are the most important part of our reserves policy.
Our financial reserves policy mandates that Guide Dogs 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 Trustees have agreed that the Group should maintain cash resources above £50.0 million (2022: £44.7 million).
This level is determined by considering the need to act as caretakers for all our dogs; provide short-term protection against inflation and downward fluctuations in annual income or capital receipts; protect the charity from investment risk; support medium term strategic investment; and to provide a financial cushion in the event of extreme circumstances affecting the charity’s ability to operate.
Guide Dogs has no wish to hold excessive cash resources as funds are donated to provide support to people with a vision impairment. The Trustees therefore closely monitor current and projected levels of cash resources and amend service delivery plans if levels become, or are expected to become, too high.
The planned investment in the property strategy, transitioning to electric vehicles and Guide Dog Academy are expected to reduce cash resources in line with our reserves policy.
42 Financial performance
At 31 December 2023, cash resources after designations stood at £50.0 million (2022: £51.6 million), made up as follows:
|At 31 December 2023, cash resources after designations stood at £50.0 million
(2022: £51.6 million), made up as follows:|||
|---|---|---|
|Relationship between reserves, cash resources and cash resources
after designations for comparison with reserves policy
Reserves
Remove fixed asset designations
Remove working capital and other adjustments
Less restricted funds
Less endowment funds
Cash resources (investments and cash)
Less People’s Postcode Lottery designated funds
Less designated funds held for future investment
Cash resources after designations|2023
£m
202.0
(47.1)
(48.8)
(8.8)
(0.6)
96.7
-
(46.7)
50.0|2022
£m|
|||198.8
(42.3)
(39.8)
(7.0)
(0.6)
109.1
(0.5)
(52.4)|
|||56.2|
## Tangible fixed assets
The movements in tangible fixed assets during the year are summarised in Note 6 to the financial statements. Capital expenditure of £8.7 million (2022: £7.3 million) has been incurred.
## Investment policy
Our investment policy is to protect the value of our investments in real terms while seeking an appropriate return. Investment managers have been selected that meet Guide Dogs’ ethical requirements and avoid investment in activities that are contrary to Guide Dogs’ charitable objectives and mission.
During 2023 Guide Dogs’ Finance Reporting and Investment Committee (F R I C) reviewed its investment approach. This review considered Guide Dogs
investment strategy, risk appetite, its environmental, social and governance policy requirements, and the level of return sought. As a result of this review Guide Dogs redistributed its investments in November 2023 from Newton Investment Management Limited to C C L A Investment Management Limited (C C L A) and Sarasin and Partners L L P (Sarasin), and increased cash held on deposit.
The investment portfolio was valued at £82.2 million at the end of the year (2022: £83.7 million). In 2023 investment gains of £3.5 million were achieved (2022: losses of £10.3 million).
As of 31 December 2023 Guide Dogs held £34.4 million (£41.8 million) in C C L A C O I F Charities Investment Fund. The fund’s investment policy is to protect from the effects of inflation with
a target return of Consumer Price Index (C P I) plus 5% over a five-year time frame. The fund provided returns of 12.36% (target 8.93%) in 2023 with a five-year annualised return of 9.89% (target 9.3%). Monies on deposit held in the C O I F deposit account amount to £17.0 million (2022: £nil) and have achieved an annualised return of 4.47% in 2023.
As of 31 December 2023 Guide Dogs held £30.8 million (£nil) in Sarasin Endowments Accumulation Fund. The fund’s investment policy is to provide growth with a target return of Consumer Price Index (C P I) plus 4% over a five-year time frame. The fund provided returns of 8.6% (target 8.07%) in 2023 with a five-year annualised return of 6.73% (target 8.61%).
> Annual Report and Accounts 2023 43
## 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 F R S 102, as of 31 December 2023 showed no deficit or surplus (2022: no deficit or surplus).
The latest completed full actuarial valuation of the scheme was at 31 December 2021. This showed a surplus of £10.1 million calculated on a technical funding basis. As the scheme is in surplus, there is no need for a deficit recovery plan and no contributions have been made to the scheme (2022: £1.0 million). We continue to work with the scheme’s trustees to manage and reduce the financial risks inherent in the scheme’s funding arrangements.
At 31 December 2023 the defined benefit pension scheme was fully funded on a technical basis with a funding percentage of 100.3% and on a self-sufficiency basis was 99.7% funded.
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 governance
## Our Board
The Board is ultimately responsible for establishing and monitoring Guide Dogs’ system of governance, risk management and internal controls and setting associated policies for implementation by management. Guide Dogs’ governance structure is designed to enable the Board to govern the charity within a framework of effective controls which enables risks to be assessed and managed.
## Risk Management Framework
Our system of governance includes a Risk Management Framework using a ‘three lines of defence’ approach which is overseen by the Audit and Risk Committee (A R C).
The Risk Management Framework seeks to ensure that:
- [There are clear and ] established risk appetites in key areas of risk within which Guide Dogs operates.
- [Risk management policies ] and processes are in place to identify, assess, monitor, manage and report risks.
- [Controls are appropriate ] to reduce risk exposure proportionate to the need for effective service delivery.
- [Risk management information ] is used to make effective decisions across Guide Dogs.
## A R C is monitoring the
organisation’s journey to provide increased business assurance from its first and second lines of defence. Foundational to this has been A R C’s challenge to tailor risk appetite, excluding the areas of regulatory and reputational risk, to increase opportunities for innovation.
## Risk, governance and assurance
The key areas of Guide Dogs’ system of risk governance are as follows:
- [The Board meets at least ] four times a year to address matters which are specifically reserved for its approval and to receive recommendations from its Committees.
- [There is a clear organisational ] structure with appropriate levels of accountability and reporting lines. The Board delegates authority to its Committees to manage specific areas of governance responsibility.
- [A R C is responsible for oversight ] of governance and compliance. In addition, it manages the relationship with the external and internal auditors.
- [Strategic risks are defined ] in conjunction with the development of the long-term plans. Strategic risks and associated risk appetites are approved by the Board and reviewed annually by A R C.
44 Financial performance
- [Management of strategic ] risks is delegated to the Executive Directors, assured by the internal risk team, and reviewed by A R C.
- [A Corporate Risk Group, ] comprised of senior managers across Guide Dogs, addresses operational risks across the organisation. The Corporate Risk Group is responsible for identifying, monitoring, mitigating and reporting of these risks. Operational risks are assured by the internal risk team, reviewed quarterly by the Executive Directors, and executive summaries are provided to A R C quarterly.
- [Each risk identified has ] an owner responsible for managing the risk in accordance with Guide Dogs’ risk methodology framework.
- [Emerging risks are discussed ] within each risk forum, impact assessed and reported to A R C for consideration.
- [An outsourced internal audit ] function, directed by A R C, provides Guide Dogs with a third line of defence. A rolling review of the design and operational effectiveness of controls is undertaken; this work is prioritised based on the perceived inherent risks and is considered by the Executive Directors and approved by A R C.
## Monitoring risks
An outcomes-based risk methodology has been implemented. This sets out the desired outcome sought by the Board, and the key risks to achieving that outcome that could occur, and thereafter A R C monitors the effectiveness of mitigations identified by management.
Following review during 2023 the risks that may arise to achieving the following key outcomes are tracked by A R C:
## Service user wait times are minimised
## **Outcome sought:**
Dogs, volunteers, technical staff and facilities are available in the right location at the right time.
## **Risks identified:**
- [Failure to deliver our ] objectives due to complexity and lack of resilience in the dog supply chain.
- [Guide Dogs is unable to keep ] up with the rapidly increasing demand for guide dogs that has arisen post pandemic.
- [Guide Dogs is unable to adapt ] quickly to the changing external environment and needs to change the way we support service users.
- [Reputational damage of ] failing our core beneficiaries severely impacting fundraising and volunteering.
## **Mitigations:**
- [Supply chain management ] function and Head of Service Quality oversee and monitor supply chain on a daily basis.
- [Robust breeding and puppies ] programme management arrangements are in place with appropriate training of technical resource, puppy raisers and fosterers to manage dog welfare.
- [Vision Rehabilitation staff ] are redeployed to ensure individuals who are waiting are supported appropriately with mobility training.
- [Training of technical staff ] and volunteers is undertaken in accordance with guide dog training and puppy raising standards which are also subject to review managed by the Animal Welfare and Ethics Committee.
## Delivery of adult and children’s services is optimised
## **Outcome sought:**
Guide Dogs has a set of services for people with a vision impairment that meets or exceeds the expectations of service users.
## **Risks identified:**
- [Adult and children’s services ] do not deliver expected reach and impact.
- [There is a lack of awareness of ] the range of services provided by Guide Dogs.
Annual Report and Accounts 2023 45
## **Mitigations:**
- [Monthly monitoring of reach ] and impact by service, including the quality of services provided to service users.
- [Biannual monitoring of public ] awareness of adult and children’s services.
## Guide Dogs reputation is protected
## **Outcome sought:**
Maintaining the integrity, goodwill and image of Guide Dogs.
## **Risks identified:**
- [Donors, volunteers, and ] beneficiaries lose trust in Guide Dogs due to incidents that damage reputation or negatively impact operations. This includes safeguarding matters, major health and safety incidents, animal welfare, serious fraud, supply chain disruption and internal process failures.
## **Mitigations:**
- [Proactive communications ] strategy to evidence that Guide Dogs makes a difference to the lives of people with a vision impairment.
- [Robust risk management ] process, information management systems and internal controls.
- [Our strategy and future ] projects are prioritised to ensure effective use of every donor pound.
## Strengthen our financial resilience
## **Outcome sought:**
A stable reliable income stream and the delivery of services with funds allocated responsibly between services.
## **Risks identified:**
- [A significant reduction in ] income occurs as a result of poor decision making or external events.
- [The inappropriate allocation ] of resources across services and activities.
## **Mitigations:**
- [Annual budget setting process, ] including review and challenge from senior management, F R I C and Trustees to ensure plans are within our financial means.
- [Periodic review of Guide Dogs ] reserves policy.
- [Annual going concern exercise ] to stress test potential impacts on our finances, performance and liquidity.
- [Roll out of the new target ] operating model supported by improved project prioritisation criteria.
## Our staff, volunteers, and capabilities reinforce our charitable objectives and strategic goals
## **Outcome sought:**
Guide Dogs meets its strategic goals and transformation
objectives with the right resources in the right place at the right time.
## **Risks identified:**
- [Activities are not aligned ] to strategic priorities and are inconsistently managed and governed.
- [Our strategic targets are not ] met due to poor planning.
- [Staff with the right capabilities ] are not available to deliver the strategy.
- [Volunteer interest in roles ] and opportunities available is not sufficient to meet operational needs.
## **Mitigations:**
- [Trustee sub-committee ] established to oversee the operating model approach including change readiness, impact assessments and risk management.
- [Project methodologies ] implemented targeting a three-year payback hurdle in order to proceed.
- [Transformation programme ] defines appropriate technical resourcing structure and Guide Dogs Academy, supported with a wider Strategic Capability Plan.
- [Train the appropriate pipeline ] of technical staff for the guide dog service.
- [Staff and volunteer capacity ] and capability is managed via workforce planning.
46 Financial performance
## Our culture enables the delivery of services that people with vision impairments need today and for the future
## **Outcome sought:**
Ensure every penny raised goes towards creating a better future for people with a vision impairment.
## **Risks identified:**
- [Services not relevant to our ] users are developed.
- [Poor engagement across our ] staff and volunteers resulting in reduced service delivery.
## **Mitigations:**
- [Regular horizon scanning ] to ensure that Guide Dogs’ services remain relevant to service users.
- [People Value Proposition ] targeting a resilient and highly engaged performance culture which is measured through qualitative and quantitative monitoring.
## Innovation is embedded in our approach to meeting the future needs of people with a vision impairment
## **Outcome sought:**
An open innovative mindset is applied to the development of new services.
## **Risks identified:**
- [The transformation ] programme fails to deliver the step-changes in process, technology and ways of working
to ensure the sustainability of the long-term vision and goals set by the Trustees.
- [Delays in modernising and ] innovating our systems, structures and processes lead to a failure to recruit and retain volunteers and staff with the right skillsets.
## **Mitigations:**
- [Trustee sub-committee ] established to govern the operating model approach and implementation covering change readiness, impact assessments and risk management.
- [Dedicated teams established to ] undertake creative, autonomous innovation development.
- [Risk appetites set to ] encourage innovation.
## Safeguarding empowers and protects the organisation to prevent harm
## **Outcome sought:**
Provide services ensuring safeguarding is at the centre of every decision taken.
## **Risks identified:**
- [A child, young person or ] vulnerable adult is harmed whilst being involved with Guide Dogs.
- [Loss of donations and ] volunteers if Guide Dogs is seen as an unsafe organisation with poor practices which causes harm to people.
## **Mitigations:**
- [Safeguarding compliance is ] monitored and reviewed by our internal teams monthly, with oversight by A R C.
- [A robust training framework ] for staff and volunteers that delivers our safeguarding training requirements to meet our delivery needs.
- [An effective whistleblowing ] process in place for staff and volunteers to report concerns to ensure Guide Dogs maintains a safer culture.
## Dogs’ health and wellbeing is maintained throughout their life
## **Outcome sought:**
Animal welfare and the duty of care for our dogs reinforces a positive culture across the organisation, our people and service users.
## **Risks identified:**
- [Failure to comply with our ] duty of care for the welfare of dogs which results in a serious incident.
## **Mitigations:**
- [Animal Welfare and Ethics ] Panel monitor animal welfare standards in operation across Guide Dogs.
- [In house veterinary centres of ] excellence embed and monitor animal welfare across the guide dog population.
> Annual Report and Accounts 2023 47
## Data is held securely and protected against malicious attacks
- [Administrative corrective ] controls including Incident Response and Disaster Recovery Planning.
## **Outcome sought:**
Cyber and information security is embedded into all organisational activities.
## **Risks identified:**
- [A breach of Guide Dogs’ ] information technology infrastructure or services. This may result in unauthorised access to steal and illegally utilise our charity data, or to plant malware viruses to access our funds, or result in a requirement to report a breach to the Information Commissioner’s Office (I C O).
## **Mitigations:**
- [Cyber insurance.]
- [Preventive administrative ] controls including policies, standards and procedures to preserve the confidentiality, integrity and availability of information.
- [Technical preventive, detective, ] and corrective controls, including but not limited to 24/7 monitoring by Security Operations Centre to enforce the policies and prevent and detect unauthorised access or data loss.
## Governance and regulatory compliance deliver trust and accountability
## **Outcome sought:**
Our governance capabilities can adapt to and mitigate changing environments and emerging threats.
## **Risks identified:**
- [Guide Dogs fails to achieve ] its purpose.
- [Changes to regulatory ] requirements negatively impact on Guide Dogs’ strategy and activities.
## **Mitigations:**
- [Charitable purposes are ] reviewed as part of the five-year strategic planning. All Trustee led committees’ terms of reference are reviewed every year.
- [Competence frameworks and ] job descriptions outline the relevant skillsets for Trustees and other committee members and a balance of appropriate skills is maintained on each Trustee board and committee.
- [Administrative controls to ] screen new joiners through recruitment process and educate to reduce the risk of human error and internal security breaches.
48 Financial performance
## 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 telefundraising activity, is undertaken in accordance with our internal standards, fundraising and licencing rules and legislation.
- [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 2023 we received 203 complaints (2022: 158).
- [In 2023, 88% (2022: 88%) ] of the total proceeds from Guide Dogs’ Lucky Lottery were applied for the unrestricted purposes of the charity, with its core objective to support people with sight loss to live the life they choose. The remaining 12% (2022: 12%) of the total proceeds covers prizes and the administrative costs of running the lottery.
- [In 2023, 59% (2022: 69%) of ] the total proceeds from Guide Dogs’ Raffles 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 41% (2022: 31%) of the total proceeds covers prizes and the administrative costs of running the Raffle. The deferral of the 2023 Christmas lottery to 2024 has increased the proportion of costs allocated to prizes and running costs.
> Annual Report and Accounts 2023 49
## 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 2023 and as of 4 July 2024, except as noted below, were:
James D Hambro Chairman
Paul W Baker M B A
Catherine M Crofts B S c, C I M, C A M
Robert M Deakin B A (Hons), (C Eng), F I E T Retired 19 September 2023
Christiane A B Elsenbach Dipl. K f m, F C S I Appointed 18 April 2023
Helen Farrow B A (Oxon), M B A Appointed 18 April 2023
Lynne V Hill M V B, M B A, M R C V S Deputy Chairman
Mark A T Johnstone B A (Hons), F C A
Patrick Moran C I T P, C I S S P Appointed 18 April 2023
Kerry Small B A (Hons) Appointed 18 April 2023
Dr Ranjit Sondhi B S c, C B E
Jennelle L Tilling B Bus/B A
Emma J West B A (Hons)
Mike J Wroe B S c (Joint Hons)
Three members of the Board of Trustees have a vision impairment: Catherine Crofts, Patrick Moran and Dr Ranjit Sondhi.
50 Structuring and managing Guide Dogs
## 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.
Rob Deakin retired from the Board in September 2023 after completing two terms of office. We have very much appreciated his service and contribution over the years and would like to thank Rob for his significant commitment and loyalty to the charity.
All new Trustees have personalised induction programmes and all Trustees are provided with regular training updates. 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 Dogs Regional Centres 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 standing committees:
The Audit & Risk Committee comprises: Mark Johnstone, Trustee of Guide Dogs and Chair of this Committee; Lynne Hill, Trustee; Patrick Moran, Trustee; Kerry Small, Trustee; Janet Ayoola, independent member; and Elaine Carr, independent member.
The Finance Reporting & Investment Committee comprises: Mike Wroe, Trustee of Guide Dogs and Chair of this Committee; Christiane Elsenbach, Trustee; Helen Farrow, Trustee; Robert Barnard-Smith, independent member; and Michael Hughes, external consultant.
The Remuneration & People Committee comprises: Emma West, Trustee of Guide Dogs and Chair of this Committee; Patrick Moran, Trustee; Ranjit Sondhi, Trustee; Jennelle Tilling, Trustee; and James Hambro as an ex officio member.
The Nominations Committee comprises: James Hambro (Chairman) Chair of the Board; Paul Baker, Chair of Guide Dogs for the Blind Association (Trading Company) Limited; Lynne Hill, Deputy Chair of the Board; Mark Johnstone, Chairman of the Audit & Risk Committee; Ranjit Sondhi, Chair of Blind Children U K; Emma West, Chairman of the Remuneration & People Committee; and Mike Wroe, Chair of the Finance Reporting & Investment Committee.
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.
The organisation has adopted The Charity Governance Code and operates in accordance with its principles. Trustees and independent committee members do not receive any remuneration for their services to Guide Dogs.
The charity has Management Liability insurance in place for the benefit of all Trustees and Pension Indemnity insurance for Trustees of the defined benefit pension scheme.
> Annual Report and Accounts 2023 51
## 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.
## Likely consequences of any decisions on the long term
The Trustees’ focus in 2023 has been to continue to increase the number of dogs available for training and to improve training success rates with the medium term objective of reducing waiting times.
Guide Dogs transformation commenced at the end of 2022 has continued throughout 2023.
The transformation has focused principally on aligning technical and support resources required to train dogs, improving the volunteer journey and ensuring that any project undertaken has clear deliverables and benefits. The organisational changes identified by the transformation programme will be implemented in 2024 and are expected to reduce training times and increase success rates in 2025 as well as stabilising the cost base.
## Engagement with stakeholders
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, independently and well. The key stakeholders we have considered are:
|Stakeholder
Service users
Donors
Our people|Feedback received
or our observations
•Time taken to
match guide dog
partnerships
has increased.
•After dark
face-to-face contact
•Level of
transformation across
the organisation.
•Cost of living
pressures.|Our principal decisions and response|
|---|---|---|
|||•Target Operating Model defined as part of
Transformation activities.
•Ongoing provision of support to people waiting to be
matched with a guide dog.
•Increased breeding to provide sufficient supply of
guide dogs in the medium term.|
|||•Fundraise in accordance with Fundraising Regulator
Code of Practice – see further details on page 48.
•Face-to-face fundraising is only undertaken before
20.30 in summer months and 20.00 in winter months.|
|||•Introduction of D E I impact assessments to all areas
of change.
•Focus on increasing effective feedback, transparency of
communication and trust in leaders through employee
voice channels – staff representatives, all staff forums
and employee networks. Employee and volunteer surveys
conducted, with positive and improved net promoter
scores. Continued cost of living support for staff.|
52 Structuring and managing Guide Dogs
|Stakeholder
Our people
(continued)
Our dogs
Partners and
suppliers
Community
Environment|Feedback received
or our observations
•Wellbeing concerns,
delivery of Diversity
Equity & Inclusion
(D E I) strategy.
•Volunteer experience.
•Animal welfare
incidents raised
by public.
•Inflation.
•Value for money.
•Increased
requirement for
in-house expertise.
•Visual impairment
accessibility
•Environmental, Social
and Governance
(E S G) not embedded
into all activities.|Our principal decisions and response|
|---|---|---|
|||•Wellbeing interventions include peer support via
Wellbeing Buddies, manager training and targeted
support for areas such as menopause or frontline staff.
•Transformation workstream focusing exclusively on
volunteer journey and experience.|
|||•Animal Welfare and Ethics Panel with responsibility
to ensuring Guide Dogs animal welfare standards
are implemented.
•Increased numbers of dog wellbeing technicians.
•In-house veterinary practices.|
|||•Retendering of key contracts.
•Introduction of innovation projects and continuous
improvement skillsets.|
|||•Improving accessibility through our long-standing
Talking Buses campaign – see further details on page 25.
•Campaign calling on the Government to crack down on
dangerous pavement parking launched – see further
details on page 24.
•Plans to close ticket offices reversed – see further
details on page 24.|
|||•100% renewable energy and carbon neutral energy
contract – see further details on page 36.
•Introduction of electric vehicles – see further details
on page 36.
•Commenced mapping a long-term sustainability strategy
and measurement through Environmental, Social and
Governance – see further details on page 33.|
Annual Report and Accounts 2023 53
## A reputation for a high standard of business conduct
The Trustees are supported by an extensive governance framework, described on page 50.
We conduct business in accordance with Charity Commission, Fundraising Regulator and Gambling Commission guidance, and have comprehensive whistleblowing procedures summarised on page 58. We place safeguarding and wellbeing at the centre of all of our interactions.
Safeguarding governance has been strengthened with the appointment of an independent member to the Audit & Risk Committee. Safeguarding training is undertaken by all of our people and monitored by a dedicated safeguarding team.
Owing to the complexity of our services and processes we have an extensive set of policies, procedures, guidance and training. These policies include fraud and anti-bribery and corruption policies. All policies are reviewed regularly and assurance is monitored.
## The need to act fairly between stakeholders of the charity
The aims of the charity and development of its strategy enable the Trustees to prioritise activities, ensure that stakeholder interests are always considered and that the Trustees act fairly between stakeholders.
## Trustees’ responsibility statement
The Trustees (who are also directors of The Guide Dogs for the Blind Association for the purposes of company law) 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) including F R S 102 “The Financial Reporting Standard applicable in the U K and Republic of Ireland”.
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing these financial statements, the 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 ] U K 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 the Trustees are aware:
- [There is no relevant audit ] information of which the charitable company’s auditor is unaware.
- [The Trustees have taken all ] reasonable steps that they ought to have taken to make themselves aware of 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.
54 Structuring and managing Guide Dogs
## Trustee and Independent Committee Member attendance at Board and Committee meetings 2023
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)
Paul Baker
Catherine Crofts
Rob Deakin
Christiane Elsenbach
Helen Farrow
Lynne Hill
Mark Johnstone
Patrick Moran
Kerry Small
Ranjit Sondhi
Jennelle Tilling
Emma West
Polly Williams*
Mike Wroe
Elaine Carr^
Robert Barnard-Smith^
Bruce Gordon^*
David Bagley*
Lynda Bowen*
Roz Gratton*
Ross Russell*
Gordon Smith*
Claire Walters*
John Wright house*|Trustee
Board
(6)
6(6)
5(6)
6(6)
2(4)
5(5)
5(5)
6(6)
6(6)
5(5)
4(5)
6(6)
5(6)
6(6)
-
5(6)
-
-
-
-
-
-
-
-
-
-|Away
Day
(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 & Risk
Committee
(4)
-
-
-
-
-
-
4(4)
4(4)
3(3)
2(3)
-
-
-
-
-
4(4)
-
-
-
-
-
-
-
-
-|F R I C
(4)
-
-
-
-
3(3)
3(3)
-
-
-
-
-
-
-
-
4(4)
-
1(4)
-
-
-
-
-
-
-
-|Pension
Trust
(4)
-
-
-
-
-
2(3)
-
-
-
-
-
-
-
1(2)
-
-
-
4(4)
2(2)
2(4)
3(4)
2(3)
4(4)
3(4)
1(4)|Remuneration
& People
Committee
(5)
4(5)#
-
-
-
-
-
-
-
3(4)
-
3(5)
5(5)
5(5)
-
-
-
-
-
-
-
-
-
-
-
-|Nomination
Committee
(6)|
|---|---|---|---|---|---|---|---|
||||||||5(6)|
||||||||1(1)|
||||||||-|
||||||||-|
||||||||-|
||||||||-|
||||||||5(6)|
||||||||6(6)|
||||||||-|
||||||||-|
||||||||6(6)|
||||||||-|
||||||||6(6)|
||||||||-|
||||||||5(6)|
||||||||-|
||||||||-|
||||||||-|
||||||||-|
||||||||-|
||||||||-|
||||||||-|
||||||||-|
||||||||-|
||||||||-|
^ Denotes Independent Committee Member
- Denotes Pension Trustee
- # Denotes attendance in ex officio capacity, not as a member of the committee
> Annual Report and Accounts 2023 55
## 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 2023 and as of 4 July 2024 were:
|Name
Andrew Lennox
Tom Wright
Peter Osborne
Sarah Bennett
Vijay Doshi
Kathryn Ward
Helen Bliss
Terry McGrath
Deborah Bourne
Emma Foulds
Dan Hall|Position|
|---|---|
||Chief Executive Officer (from 20 September 2023)|
||Chief Executive Officer designate (from July 2023)|
||Chief Executive Officer (to September 2023)|
||Deputy Chief Executive Officer (from September 2023)|
||Chief Operations Officer (to September 2023)|
||Chief Financial Officer (from October 2023)|
||Acting Finance Director (from April 2023 to September 2023)|
||Chief Financial Officer (from June 2022 to May 2023)|
||Director of People|
||Director of Transformation (from July 2023)|
||Chief Fundraising and Marketing Officer (from June 2024)|
||Director of Fundraising and Commercial|
||Chief Marketing and Strategy Officer (to December 2023)|
||Chief Information Officer (from March 2024)|
56 Structuring and managing Guide Dogs
## Our policy on executive pay
Guide Dogs is a leading charity, supporting the Vision Impaired (V I) community through a range of services, including the creation of guide dog partnerships. To achieve this, we need to develop, 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 and C E O forms part of their contracts. It was introduced in 2011, reviewed in 2021, and any pay changes are determined by Guide Dogs’ People & Remuneration Committee operating as a sub-committee of the Board.
The Trustees use recognised benchmarks to ensure individual and collective levels of pay are
appropriate, and comparable with similar roles in organisations of a similar size and complexity. Pay rises are awarded based on benchmark, organisational and individual performance, as well as affordability. Guide Dogs is committed to transparency on the issue of pay and supports the recommendations in the National Council of Voluntary Organisations (N C V O). Information about executive pay is available on both our website and in this annual report.
## Salary and benefits
The below table shows basic salaries from date of appointment into the role.
|Name
Andrew Lennox
Tom Wright
Peter Osborne
Sarah Bennett
Vijay Doshi
Kathryn Ward
Helen Bliss
Deborah Bourne
Emma Foulds|Position
Chief Executive Officer (from 20 September 2023)
Chief Executive Officer (to September 2023)
Deputy Chief Executive Officer (from September 2023)
Chief Operations Officer (to September 2023)
Chief Financial Officer (from October 2023)
Acting Finance Director (from April 2023)
Chief Financial Officer (to May 2023)
Director of People
Director of Transformation (from July 2023)
Director of Fundraising and Commercial
Chief Marketing and Strategy Officer (to December 2023)|Basic salary|
|---|---|---|
|||£50,000|
|||£139,546|
|||£114,950|
|||£77,011|
|||£59,802|
|||£127,308|
|||£63,508|
|||£97,850|
|||£105,350|
Pension contributions, employer’s National Insurance and flexible benefits for key management listed above totalled £185,079 (2022: £182,273).
## Other benefits
Benefits for Executive Directors – including a flexible benefits allowance and employer pension contributions – are in line with rewards and benefits available to all staff.
> Annual Report and Accounts 2023 57
## Diversity, equity and inclusion
Since launching our Diversity, Equity, and Inclusion (D E I) Strategy in 2022, we have continued to embed the strategy’s principles into the working culture at Guide Dogs.
Our D E I Strategy is a significant step in our continuing journey towards becoming a fully inclusive organisation. It has been co-produced by a wide range of people including those who attend staff networks, staff from minority communities who choose not to attend the networks, allies, leaders, and Trustees.
Our D E I strategy sets out our roadmap for the next three years across four pillars. These are:
- [Becoming a gold standard ] employer for people with a vision impairment.
- [Being inspired by difference.]
- [Levelling the playing field.]
- [Building a culture of belonging.]
By the end of 2023 we had 67 colleagues with lived experience of sight loss working at Guide Dogs, which is an increase of 73% since 2018. We share the sector’s drive to ensure this figure increases – roughly 10% of our workforce have a declared disability – but our focus extends beyond just a percentage of workforce figure.
We want Guide Dogs to become an employer of choice for people with a vision impairment or any declared disability.
We continue to ensure that safeguarding is embedded in all our work, and we place safeguarding and wellbeing at the centre of all our interactions. The safety of the people we support is of the upmost importance and we take our safeguarding responsibilities towards our service users seriously, ensuring we provide a safe and secure culture in the organisation. Detailed safeguarding training is undertaken by staff and volunteers and is monitored by a dedicated safeguarding team.
## Employee involvement
We’re committed to transparency in our work, including employees in decisions and consulting formally and informally about proposed changes. We listen to feedback from employees and volunteers through broad annual surveys and targeted focus groups. We enable mutually beneficial two-way communication with employees through day-to-day line management, team and cross-directorate meetings, our intranet and email. Employees of all levels contribute to key forums, such as our Inclusion & Accessibility committees, Employee
Networks, and our Wellbeing teams. In addition, employees can raise any questions they may have at a national level, via regular all-staff Q&A meetings, and via our elected Staff Representatives, who in turn work to problem solve, supporting individuals and our whole community.
## Employing people with disabilities
We are a Disability Confident Employer and have been awarded the Two Ticks symbol by Job Centre Plus. The symbol identifies employers who have taken action 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. We support our staff – and new hires – through applications for Access to Work grants, as well as ensuring they have the reasonable adjustments required to thrive in the workplace. During 2023 employees with a vision impairment had the opportunity to take part in a mentoring scheme to improve confidence and achieve career goals. Our Disability staff network remains our fastest growing group, providing peer support to over 100 members.
58 Structuring and managing Guide Dogs
## Whistleblowing
Our whistleblowing policy outlines our approach to dealing with allegations which relate to suspected wrongdoing or potential risks at work which have a wider impact. The Audit & Risk Committee receives an annual report from the Whistleblowing Officer on the level and nature of issues raised. Any significant matters raised are escalated to the Chairman of the Audit & Risk Committee. The respective responsibilities of the Committee and the Board in respect of whistleblowing are set out in the Committee’s Terms of Reference. The Committee reviews, on behalf of the Board, the adequacy and security of the charity’s arrangements for its employees, volunteers, agency workers and contractors to raise concerns, in confidence, about possible wrongdoing. The Committee seeks to ensure that these arrangements allow proportionate and independent investigation of such matters and appropriate follow-up action.
## 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 U K is a charity ] which raises funds to provide services to children and young people with vision impairment and their families. In 2023 Blind Children U K made a restricted grant of its liquid funds to Guide Dogs for use in providing these services.
- [Guide Dogs U K Limited is ] the charity’s design and build subsidiary.
- [G D B A Community Care ] Services Limited, G D B A (Pension Fund Trustee) Limited, Guide Dogs Limited and Blind Children U K (Trading) Limited were dormant during 2023.
The financial performance of these subsidiaries is disclosed in Note 17 of the financial statements.
## 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 B D O L L P as auditor of the Company.
Annual Report and Accounts 2023 59
## 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 2 0 9 6 1 7 in England and Wales, number S C 0 3 8 9 7 9 in Scotland and number 1 3 3 4 in Isle of Man) and was incorporated as a company limited by guarantee (registered in England and Wales number 0 0 2 9 1 6 4 6) on 30 August 1934. Its Central Office which is also its Registered Office, is Hillfields, Reading Road, Burghfield Common, Reading, Berkshire R G7 3Y G. Printed copies of the full accounts can be obtained by contacting the above address.
Guide Dogs is governed by its Articles of Association, which were last amended on 14 September 2021. 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.
60 Corporate inft)rmotion
Public benef it
Principal Advisors
Investment
Fund Managers
The objects and aims of Guide
Auditor
Dogs fall within the sub-section
BDO LLP
of the Charities Act 2011 related 2 City Place
to the relief of those in need, by
reoson of youth, oge, ill-health,
Beehive Ring Road
Gotwick
disability, financial hardship or
West Sussex RH6 OPA
other disadvantage.
No person who is bllnd or
partially sighted is prohibited
from applying for as&stance
from the services we
provide on the grounds of
financial circumstances.
CCLA Investment
Management Limited
l Angel Lane
London EC4R 3AB
Sarosin & Partners Limited
Liability Partnership
Juxon House
100 St Paul's Churchyard
London EC4M 88U
Bankers
Barcloys Bonk PIC
I Churchill Place
London E14 5HP
Newton Investment
Management Limited
The Bank of New York
Mellon Centre
160 Queen Victorio Street
London EC4V 4LA
The Board hos paid due
regard to the public benef
guidonce published by the
Charity Commission.
The Trustee5' report including the Strategic report
ond the Directors, report. was approved by the Board
on 4 July 2024 and si9ned on its beholf by..
e5 Hambro
Chairman
> Annual Report and Accounts 2023 61
# Independent auditor’s report to the members and the Trustees of The Guide Dogs for the Blind Association
62 Independent auditor’s report to the members and the Trustees of The Guide Dogs for the Blind Association
## Report on the audit of the financial statements
## Opinion on the financial statements
In our opinion the financial statements:
- [give a true and fair view of ] the state of the Group’s and of the Parent Charitable Company’s affairs as at 31 December 2023 and of the Group’s incoming resources and application of resources and the Parent Charitable Company’s incoming resources and application of resources for the year then ended;
- [have been properly prepared ] in accordance with United Kingdom Generally Accepted Accounting Practice; and
- [have been prepared ] in accordance with the 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, as amended.
We have audited the financial statements of The Guide Dogs for the Blind Association (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 December 2023 which comprise the consolidated statement of financial activities incorporating an income and expenditure
account, the consolidated and charity balance sheets, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the U K and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (U K) (ISAs (U K)) 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Independence**
We remain independent of the Group and the Parent Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the U K, including the F R C’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
## 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 and the 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 Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
> Annual Report and Accounts 2023 63
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
## Other Companies Act 2006 reporting
In our opinion, based on the work undertaken in the course of the audit:
- [the information given in the ] Trustees’ Report, which includes the Directors’ Report and the Strategic report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
Report, have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
- [proper and adequate ] 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 Directors’ ] remuneration specified by law are not made; or
- [we have not received all the ] information and explanations we require for our audit.
## Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines 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.
- [the Strategic report and ] the Directors’ Report, which are included in the Trustees’
64 Independent auditor’s report to the members and the Trustees of The Guide Dogs for the Blind Association
## 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 under the Companies Act 2006 and report in accordance with the 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 (U K) 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.
## **Extent to which the audit was 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:
## **Non-compliance with laws and regulations**
Based on:
- [Our understanding of the ] Group and the sector in which it operates;
- [Discussion with management, ] the Audit & Risk committee and those charged with governance; and
- [Obtaining and understanding ] of the Group’s policies and procedures regarding compliance with laws and regulations;
we considered the significant laws and regulations to be the applicable accounting framework and U K tax legislation.
The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the Charities Act in the U K, U K G A A P, U K tax legislation, the Charity Commission and the Office of the Scottish Charity Regulator.
Our procedures in respect of the above included:
- [Review of minutes of meeting ] of those charged with governance for any instances of non-compliance with laws and regulations;
- [Review of correspondence ] with regulatory and tax authorities for any instances of non-compliance with laws and regulations;
- [Review of financial statement ] disclosures and agreeing to supporting documentation;
- [Review of legal expenditure ] accounts to understand the nature of expenditure incurred.
## **Fraud**
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
- [Enquiry with management, the ] Audit & Risk committee and those charged with governance regarding any known or suspected instances of fraud;
- [Obtaining an understanding ] of the Group’s policies and procedures relating to:
- Detecting and responding to the risks of fraud; and
- Internal controls established to mitigate risks related to fraud;
> Annual Report and Accounts 2023 65
- [Review of minutes of meeting of ] those charged with governance for any known or suspected instances of fraud;
- [Discussion amongst the ] engagement team as to how and where fraud might occur in the financial statements;
- [Performing analytical ] procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
- [Assessing the design and ] operating effectiveness of controls and procedures relevant to the preparation of the financial statements and the detection and prevention of irregularities and fraud.
Our procedures in respect of the above included:
- [Testing a sample of journal ] entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;
- [Assessing significant estimates ] made by management for bias, including; the assumptions used to value the defined benefit pension scheme; the judgments used to value the accrued legacy income; and the allocation of support costs.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications
of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“F R C’s”) website at:
www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report.
## 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 the Charities and Trustee Investment (Scotland) Act 2005.
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.
## Fiona Condron
Senior Statutory Auditor For and on behalf of B D O L L P Statutory Auditor London, United Kingdom Date: 4 July 202411 July 2024
B D O L L P is a limited liability partnership registered in England and Wales (with registered number O C 3 0 5 1 2 7).
66 Accounts and financial statements
# Accounts and financial statements
> Annual Report and Accounts 2023 67
## Consolidated statement of financial activities incorporating an income and expenditure account for the year ended 31 December 2023
|
31 December 2023||||||
|---|---|---|---|---|---|
|Notes
Income and endowment from:
2
Donations and legacies
Charitable activities
Other trading activities
Investments
Other income
Total income
Expenditure on:
3
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 expenditure on charitable activities
Total expenditure
Net gain/(loss) on investments
Net Income for the year
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
125.0
1.5
7.3
1.5
-
135.3
36.7
67.6
11.6
8.6
0.4
12.5
100.7
137.4
3.5
1.4
-
1.4
191.2
192.6|Restricted
funds
£m
9.4
-
-
-
-
9.4
-
6.3
0.4
0.9
-
-
7.6
7.6
-
1.8
-
1.8
7.0
8.8|Endowment
funds
£m
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.6
0.6|Total
2023
£m
134.4
1.5
7.3
1.5
-
144.7
36.7
73.9
12.0
9.5
0.4
12.5
108.3
145.0
3.5
3.2
-
3.2
198.8
202.0|Total
2022
£m
131.1
1.3
8.4
0.9
0.3|
||||||142.0|
||||||32.6|
||||||63.8
9.3
10.0
0.7
11.9|
||||||95.7|
||||||128.3|
||||||(10.3)|
||||||3.4|
||||||(1.0)|
||||||2.4|
||||||196.4|
||||||198.8|
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 22.
The accounting policies and notes on pages 69 to 101 form part of these financial statements.
68 Accounts and finoncial statement5
Consolidated and charity balance sheets at 31 December 2023
6roup
2025
£m
Group
2022
Chorlty
2023
£m
Churity
2022
Not85
Fixed assets
Tongible assets
Intangiblefixed assets
Investments
47.1
42.3
47.4
5.7
66.2
42.3
8(a)
65.2
83.7
84.7
Totalfixed ossets
118.0
129.5
119.3
130.5
Current assets
Stocks
Debtors
Investments
Cosh ot bonkond in hond
io
81a)
63.2
17.0
18.6
52.3
66.0
17.0
14.3
52.7
28.2
25.6
Total current assets
99.1
80.8
97.3
78.3
Creditors
Amounts falling due within one year
Net current assets
li
(15.0)
84.1
01.4)
69.4
114.3)
83.0
(10.81
67.5
Total assets less current liabilities
202.1
198.9
202.3
198.0
Creditors
Amountsfalling dueofter morethan oneyeor
Net assets
12
(0.1)
202.0
10.1)
198.8
10.1)
202.2
(0.1)
197.9
Unrestricted funds
Generalfunds
Designated funds
Total unrestricted f unds
Restrlcted funds
Endowmentfunds
98.8
93.8
96.0
95.2
98.1
94.1
95.4
95.2
192.6
191.2
7.0
0.6
192.2
190.6
0.6
Total funds
202.0
Ig8.8
202.2
197.9
Prior yeor restricted opening and closing funds hove been restated. This is discussed more fully in Note 14. Overall
total funds refflain unchonged. The parent charity, The Guide Dogs for the Blind Association, has gross income of
£144.3 million12022.. £140.0 million) ond a result of £4.3 million goin12022- £1.7 million goin) for the yéor. As
pr(wided by Section 408 of the Componies Act 2006, no separate incorne and expenditure account is presènted
for the porent chority. The Finon¢iol Statements of The Guide Dogs for the Blind Association (registered company
number 00291646) were opproved and thorised for issue by the Board of Trustees on 4 July 2024 ond signed
on Its beholf by..
The accounting policies and notes on
poges 69 to 101 form part of these
finoncial statements.
. Choirman
k Johnstone, Trustee
> Annual Report and Accounts 2023 69
## Consolidated cash flow statement for the year ended 31 December 2023
|Consolidated cash flow statement for the year ended
31 December 2023|||
|---|---|---|
|Notes
Cash flows from operating activities
Net cash (used in)/generated from operating activities
21
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of tangible and intangible fixed assets
Proceeds from sale of tangible fixed assets
Draw down of investments
Purchase of investments
Net cash used in investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at 1 January
(Decrease)/increase in the year
Cash and cash equivalents at 31 December|2023
£m
(5.9)
0.5
(10.2)
0.2
40.8
(35.0)
(3.7)
(9.6)
28.2
(9.6)
18.6|2022
£m
(Restated)
26.7|
|||0.9
(10.8)
0.4
11.3
(26.8)|
|||(25.0)|
|||1.7|
|||26.5
1.7|
|||28.2|
Prior year cash flows relating to the purchase and drawdown of investments, previously reported as a single net movement, have been restated to show them as gross movements. The accounting policies and notes on pages 69 to 101 form part of these financial statements.
## Notes to the financial statements for the year ended 31 December 2023
## 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 14 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 59.
## 1. Accounting policies
The principal accounting policies adopted in the preparation of these financial statements are as follows:
## a. Basis of accounting
The financial statements have been prepared in accordance with the Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the U K and Republic of Ireland (F R S 102)) (issued in October 2019) – (Charities SORP (F R S 102)), the Financial Reporting Standard applicable in the U K and Republic of Ireland (F R S 102) and the Companies Act 2006.
70 Accounts and financial statements
The Guide Dogs for the Blind Association meets the definition of a qualifying entity under F R S 102 and the charity 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
The Board of Trustees has reviewed financial projections for Guide Dogs which reflect the aim to increase the number of guide dog partnerships and reduce waiting times. The Board of Trustees have reviewed Guide Dogs five year financial plan and have not identified any material uncertainties related to events or conditions that cast significant doubt on the charity’s (and group’s) ability to continue as a going concern. 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 U K and global economy. The Board has considered the impact of a key risk crystallising and a number of scenarios including a reduction in donations and continued supply chain inflation on future cashflows.
## 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, Blind Children U K and Guide Dogs U K Limited. These financial statements have been consolidated on a line-by-line basis and include the elimination of inter company transactions and balances. The results of the subsidiary undertakings are disclosed in Note 17.
## 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 community fundraising activities and associated donations is accounted for on a cash receipts basis. Income from raffles and draws is accounted for at the time of entitlement.
- ii. Donated goods and 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 (F R S 102), general volunteer time is not recognised and is referred to in the Trustees’ report for more information about their contribution. On receipt, donated goods and services 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: Pecuniary legacies are accounted for when notification of the legacy is received, normally after grant of probate, unless there is any evidence that there are insufficient assets in the estate to pay the legacy or the legacy is contested. Residuary legacies are accounted for when notification of the legacy is received, normally after grant of probate providing the amount can be reliably ascertained and that ultimate receipt is probable. See also Sources of estimation uncertainty. Where part or all of a legacy is contested, the disputed amount is not recognised as income. Residuary legacies with a life interest are not recognised as income until the beneficial title has passed to the Charity absolutely. Legacies that do not meet the recognition criteria but where a value can be reliably estimated are disclosed as contingent assets in Note 10 – Debtors.
Annual Report and Accounts 2023 71
- iv. Gift aid income is accounted for at the time of entitlement; this is on submission of a claim to H M Revenue and Customs (H M R C).
- v. Investment income is accounted for on an accruals basis.
- vi. 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.
- vii. Other grant and trust income is recognised at the earlier of cash received and when entitlement and value can be evidenced.
- viii. Rehabilitation income is recognised based on services provided in accordance with agreed contractual arrangements
## 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 commitment has been made and the fulfilment of any associated performance obligation is judged to be probable. Any performance obligations judged to be possible will be disclosed as a contingent liability.
- ii. The costs of charitable activities and raising 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 and compliance 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 compliance matters) are included in the support costs allocation.
- iii. The cost of irrecoverable Value Added Tax is included within relevant expenditure.
- iv. Termination liabilities are recognised when a legal or constructive obligation exists that can be reliably estimated and is probable will occur.
## 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, information technology, finance, personnel, payroll, governance and compliance 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 and were adopted as deemed costs upon F R S 102 transition (see Note 6), 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
Motor vehicles
Computer hardware|10% - 20%
20%
33%|
72 Accounts and financial statements
Leasehold properties are depreciated over their lease terms on a straight-line basis.
Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use and are reviewed for impairment at each reporting date.
## i. Intangible fixed assets
Intangible fixed assets represent costs of significant software and technology systems for use in the long term. Research phase costs are expensed, third party costs of the development and implementation phases are capitalised. Costs are amortised over their useful economic life of 5 years following commissioning of the system. Prior to commissioning assets will be disclosed as assets under construction and will not be amortised.
## 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 measured at transaction price (including transaction costs), except for those financial assets classified at fair value through the statement of financial activities, which are measured at fair value (which is normally the transaction price), 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 that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value in the case of current assets and liabilities and discounted settlement value in the case of assets and liabilities falling due after more than one year.
## 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 (Note 19): The defined benefit scheme surplus of £10.1 million (2022: £13.3 million) has not been recognised as the Trustees judge that they cannot demonstrate that it is recoverable by Guide Dogs.
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 generally bred internally, 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. A few dogs are purchased externally and these costs are expensed.
> Annual Report and Accounts 2023 73
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**
Intangible fixed assets (see Note 7): Intangible assets amounting to £5.7 million (2022: £3.5 million) have been recognised. This asset relates to the donor and volunteer management and income processing I T transformation, and any such project inherently carries risk. The impairment tests that require significant judgement are the extent to which the asset is expected to be used in the future and its economic performance. If circumstances arose whereby the asset could not be fully utilised an impairment provision of up to £5.7 million could occur. Whilst inherent uncertainties remain over the project, the Trustees currently anticipate a phased implementation between quarter 4 2024 and the end of quarter 1 2025. The Trustees currently consider that no impairment has occurred.
Accrued legacy income (see Note 10): The accrued legacy income amounts to £56.4 million at 31 December 2023 (£47.8 million at 31 December 2022). 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 estimated disposal value of underlying capital assets in residuary legacies, and the legal and professional fees and other liabilities, which are estimated based on the best information available at the balance sheet date. When calculating the estimated value of a residuary legacy, an estimated deduction for costs incurred in administering an Estate of 5% or 7% or 9%, depending on the size of the Estate, is applied.
An increase in legal fees equivalent to 1% of the gross accrual would reduce the legacy accrual by £0.6 million (2022: £0.5 million). Due to the uncertainty associated with such estimates, there is a possibility that, on conclusion of open matters at a future date, the final outcome may differ.
Pension actuarial assumptions (see Note 19). The valuation of pension liabilities is determined using a number of assumptions including the discount rate, rate of increase of pensions in payment, inflation rates, life expectancy in retirement and cash commutation. The key source of estimation uncertainty is the likelihood of actual rates diverging from the assumptions used the estimate pension liabilities. The valuation and underlying assumptions used in these accounts have been prepared by a qualified actuary and reflect industry standards. The following sensitivities have been identified on the defined benefit obligation:
- [A 0.5% reduction in the discount rate would ] increase the defined benefit obligation by £15.4 million (2022 £4.9 million).
- [A 0.5% increase in inflation rate would increase ] the defined benefit obligation by £8.0 million (2022 £6.3 million).
- [A 1 year increase in life expectancy would ] increase the defined benefit obligation by £6.8 million (2022 £7.3 million).
## 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.
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.
74 Accounts and financial statements
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 F I F O (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.
## n. Cash and cash equivalents
Cash and cash equivalents are defined as cash in hand, notice deposits with a notice period of less than 3 months at the date of acquisition and overdraft facilities repayable on demand. A net debt reconciliation has not been presented as Guide Dogs do not have any debt.
Cash held by investment managers is not treated as meeting the definition of cash or cash equivalents and is disclosed as short-form investments.
## o. 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.
- a. 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 F R S 102.
The difference between the fair value of the assets held in the defined benefit pension scheme and the liabilities measured on an actuarial basis using the projected unit method is recognised in the group’s balance sheet as a pension asset or liability as appropriate. The carrying value of any resulting pension scheme asset is restricted to the extent that the group can recover the surplus and has
not been recognised as the group does not have an unconditional right to a refund of any surplus on wind-up of the Scheme.
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 annual actuarial valuations.
## p. 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 14.
## q. 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 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 total expenditure for which it was incurred.
> Annual Report and Accounts 2023 75
## 2. Income
|2. Income|||
|---|---|---|
|Income from donations and legacies
Community fundraising
Donor-based fundraising
Corporate and trust income
Legacies
Total donations and legacies
Charitable activities
Sale of rehabilitation services under contract
Ancillary trading
Total charitable activities
Other trading activities
Raffles and draws
Lotteries
Other
Total other trading activities
Investment income
Other income
Total other income
Total income|2023
£m
7.1
53.2
6.2
67.9
134.4
1.3
0.2
1.5
2.4
3.7
1.2
7.3
1.5
-
-
144.7|2022
£m
6.2
53.7
4.9
66.3|
|||131.1|
|||1.1
0.2|
|||1.3|
|||3.6
3.5
1.3|
|||8.4|
|||0.9|
|||0.3|
|||0.3|
|||142.0|
See Note 10 for further information on the accrued legacy income.
Six ex-gratia legacy payments (2022: one) with a combined value of £40,677 were made during the year (2022: £367). This relates to payments that the Trustees are under no legal obligation to make, either from monies already received by the Association from legacy income or as a waiver of the Association’s entitlement to receive such monies, but where they consider such payments are in line with the underlying expectations and wishes of the legators.
76 Accounts and financial statements
## 3. Total expenditure
|3. Total expenditure|||||
|---|---|---|---|---|
|Expenditure on raising funds
Expenditure on raising donations and legacies
Community fundraising
Donor-based fundraising
Corporate and trust income
Fundraising development and administration
Legacy marketing and administration
Total expenditure on raising donations and legacies
Expenditure on trading activities
Expenditure on other trading activities
Raffles and draws
Lotteries
Total expenditure on trading activities
Investment management fees
Total 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 charitable expenditure
Total expenditure|Direct
costs
£m
4.0
15.9
1.2
2.4
5.1
28.6
1.4
1.3
1.3
4.0
0.1
32.7
59.0
9.0
7.2
0.3
10.4
85.9
118.6|Support
costs
£m
1.0
0.6
0.5
1.1
0.6
3.8
0.1
-
0.1
0.2
-
4.0
14.9
3.0
2.3
0.1
2.1
22.4
26.4|Total
2023
£m
5.0
16.5
1.7
3.5
5.7
32.4
1.5
1.3
1.4
4.2
0.1
36.7
73.9
12.0
9.5
0.4
12.5
108.3
145.0|Total
2022
£m
4.7
17.5
1.2
3.1
1.2|
|||||27.7|
|||||1.2
1.7
1.8|
|||||4.7|
|||||0.2|
|||||32.6|
|||||63.8
9.3
10.0
0.7
11.9|
|||||95.7|
|||||128.3|
Annual Report and Accounts 2023 77
## 3. Total expenditure continued
## 2022 Comparatives
|3. Total expenditure continued
2022 Comparatives||||
|---|---|---|---|
|Expenditure on raising donations and legacies
Community fundraising
Donor-based fundraising
Corporate and trust income
Fundraising development and administration
Legacy marketing and administration
Total expenditure on raising donations and legacies
Expenditure on trading activities
Cost of goods sold and other costs
Raffles and draws
Lotteries
Total expenditure on trading activities
Investment management fees
Total 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 charitable expenditure
Total expenditure|Direct
costs
£m
3.7
16.8
0.9
2.3
0.9
24.6
1.2
1.7
1.8
4.7
0.2
29.5
52.2
7.6
6.9
0.6
10.7
78.0
107.5|Support
costs
£m
1.0
0.7
0.3
0.8
0.3
3.1
-
-
-
-
-
3.1
11.6
1.7
3.1
0.1
1.2
17.7
20.8|Total
2022
£m
4.7
17.5
1.2
3.1
1.2|
||||27.7|
||||1.2
1.7
1.8|
||||4.7|
||||0.2|
||||32.6|
||||63.8
9.3
10.0
0.7
11.9|
||||95.7|
||||128.3|
78 Accounts and financial statements
## 3. Total expenditure continued
## Total expenditure includes:
|3. Total expenditure continued
Total expenditure includes:|||
|---|---|---|
|Lease charges
Other – land and buildings
Depreciation charged in the year
Fees payable to the charity’s auditor
The audit of the charity’s annual financial statements (inclusive of VAT)
The audit of the charity’s subsidiaries pursuant to legislation (inclusive
of VAT for B C U K)
Fees payable to the pension scheme’s auditor
The audit of the charity’s pension scheme (inclusive of VAT)|2023
£m
1.4
3.8
2023
£’000
182.3
20.5
21.6|2022
£m
0.9
3.5|
|||2022
£’000
175.2
19.2
30.0|
> Annual Report and Accounts 2023 79
## 3. Total expenditure continued
## Support cost allocation
|Governance and compliance
Finance
Information technology
Human resources
Marketing and communications
Central property costs
Other central costs
Total|Raising
funds
£m
0.2
0.6
1.4
0.7
0.2
0.4
0.5
4.0|Provision of
guide dog
services
£m
0.9
2.2
5.2
2.5
0.9
1.5
1.7
14.9|Provision of
other adult
services
£m
0.2
0.4
1.0
0.5
0.2
0.4
0.3
3.0|Provision of
children’s
services
£m
0.1
0.3
0.8
0.4
0.2
0.2
0.3
2.3|Research
and
development
£m
-
-
0.1
-
-
-
-
0.1|Advocacy
and
awareness
£m
0.1
0.3
0.8
0.4
0.1
0.2
0.2
2.1|Total
2023
£m
**1.5**
**3.8**
**9.3**
**4.5**
**1.6**
**2.7**
**3.0**|
|---|---|---|---|---|---|---|---|
||||||||**26.4**|
## 2022 Comparatives
|Governance and compliance
Finance
Information technology
Human resources
Marketing and communications
Central property costs
Other central costs
Total|Raising
funds
£m
-
0.5
1.1
0.6
0.3
0.3
0.3
3.1|Provision of
guide dog
services
£m
0.2
2.0
4.1
2.1
1.0
1.1
1.1
11.6|Provision of
other adult
services
£m
-
0.2
0.6
0.3
0.2
0.2
0.2
1.7|Provision of
children’s
services
£m
-
0.5
1.1
0.6
0.3
0.3
0.3
3.1|Research
and
development
£m
-
-
0.1
-
-
-
-
0.1|Advocacy
and
awareness
£m
-
0.2
0.5
0.2
0.1
0.1
0.1
1.2|Total
2022
£m
**0.2**
**3.4**
**7.5**
**3.8**
**1.9**
**2.0**
**2.0**|
|---|---|---|---|---|---|---|---|
||||||||**20.8**|
Contributions to the defined contributions pension scheme are allocated to activities in line with resources the contributions relate to. All defined contribution pension contributions are funded from unrestricted funds.
## 4. Research and development
Research and development comprises strategic, market, consumer and scientific research and technology development. Total research and development expenditure amounted to £0.4 million (2022: £0.7 million).
80 Accounts and financial statements
## 5. 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 (2022: £nil). Travelling and subsistence expenses were reimbursed in respect of nine (2022: seven) Trustees, totalling £7,928 (2022: £3,893). Trustee donations received in respect of four (2022: six) Trustees total £980 (2022: £3,066).
## Staff costs
|Staff costs|||
|---|---|---|
|Wages and salaries
Social security
Other pension costs
Sub total
Other staff benefits
Total|2023
£m
59.6
6.1
6.1
71.8
2.6
74.4|Restated
2022
£m
53.1
5.6
5.4|
|||64.1
1.7|
|||65.8|
In the prior year, staff costs were interpreted to include general staff-related costs as well as remuneration paid to employees, social security costs, other pension costs and other staff-benefits. Other staff benefits were included within “other staff-related costs” and not separately disclosed as is required by the Charities SORP. In 2023, and going forward, an internal policy review has determined that staff costs should only include remuneration, social security costs, other pension costs and other benefits to employees. The prior year figures have, therefore, been restated to exclude the general staff-related costs amounting to £4.1 million.
Other non-material reclassification adjustments in the staff-costs comparative figures include:
- [£1.9 million relating to Pension salary sacrifice re-classified ] from Wages and Salaries to Other Pension Costs owing to a classification error.
- [£0.5 million reclassified from the previously-reported Other ] Staff-related Costs to Wages and Salaries, as this amount was paid in cash to the employees.
- [£0.2 million paid to casual staff reclassified to Wages and Salaries, as ] they were previously reported as Other Staff-related Costs in error.
Wages and Salaries include £0.3 million redundancy and termination payments in the year (2022: £0.4 million).
> Annual Report and Accounts 2023 81
## 5. Trustees and employees continued
The average number of persons employed during the year ended 31 December 2023 is shown below:
|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)|2023
Headcount
251
892
210
164
5
113
259
1,894|2022
Headcount
218
838
187
149
8
110
224|
|---|---|---|
|Total||1,734|
The average Full Time Equivalent (F T E) of persons employed during the year ended 31 December 2023 was 1,745 (2022: 1,590). Pension contributions were paid into Guide Dogs’ defined contribution scheme for 2,003 employees (2022: 1,842 employees). The number of group employees whose emoluments, excluding pension contributions and employer’s National Insurance, but including benefits in kind, were in excess of £60,000 was:
|
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
£110,001 to £120,000
£170,001 to £180,000
£180,001 to £190,000
Total|2023
Number
29
13
6
4
1
2
-
1
56|Restated
2022
Number
11
12
6
4
1
2
1
-|
|||37|
The prior year information has been restated as a result of the reclassification of the Pension salary sacrifice outlined above. Pension contributions were paid into the Guide Dogs’ defined contribution scheme for the year on behalf of 56 (2022: 37) of the employees with emoluments in excess of £60,000.
## Key management personnel
The key management personnel of the parent charity and the Group are listed on pages 55 and 56. The total remuneration (including pension contributions and employer’s National Insurance) of the key management personnel of the charity for the year totalled £1.1 million (2022: £0.9 million). Consultancy fees amounting to £574,920 (2022: £nil) were paid for interim Executive level support. In addition, Tom Wright was paid a non-contractual amount of £50,000 (2022: £nil) to facilitate a smooth transition to his successor as the Trustees believed this to be in the best interests of the charity. No amounts are outstanding.
82 Accounts and financial statements
## 6. Tangible fixed assets
|6. Tangible fixed assets||||||
|---|---|---|---|---|---|
|Group
Cost
As of 1 January 2023
Additions
Disposals
Transfers
At 31 December 2023
Depreciation
As of 1 January 2023
Provision for year
Disposals
At 31 December 2023
Net book value 31 December 2023
Net book value 31 December 2022|Freehold
properties and land
£m
56.8
1.2
-
1.8
59.8
22.8
1.8
-
24.6
35.2
34.0|Assets under
construction
£m
2.2
6.7
-
(1.8)
7.1
-
-
-
-
7.1
2.2|Leasehold
properties
£m
1.0
-
-
-
1.0
0.8
0.1
-
0.9
0.1
0.2|Furniture,
equipment, vehicles
and computers
£m
15.3
0.8
(1.0)
-
15.1
9.4
1.9
(0.9)
10.4
4.7
5.9|Total
£m
75.3
8.7
(1.0)
-|
||||||83.0|
||||||33.0
3.8
(0.9)|
||||||35.9|
||||||47.1|
||||||42.3|
Freehold properties and land includes £5.8 million of freehold land (2022: £5.8 million).
|Charity
Cost
As of 1 January 2023
Additions
Disposals
Transfers
At 31 December 2023
Depreciation
As of 1 January 2023
Provision for year
Disposals
At 31 December 2023
Net book value 31 December 2023
Net book value 31 December 2022|Freehold
properties and land
£m
56.8
1.2
-
1.8
59.8
22.8
1.8
-
24.6
35.2
34.0|Assets under
construction
£m
2.2
7.0
-
(1.8)
7.4
-
-
-
-
7.4
2.2|Leasehold
properties
£m
1.0
-
-
-
1.0
0.8
0.1
-
0.9
0.1
0.2|Furniture,
equipment, vehicles
and computers
£m
15.3
0.8
(1.0)
-
15.1
9.4
1.9
(0.9)
10.4
4.7
5.9|Total
£m
75.3
9.0
(1.0)
-|
|---|---|---|---|---|---|
||||||83.3|
||||||33.0
3.8
(0.9)|
||||||35.9|
||||||47.4|
||||||42.3|
Annual Report and Accounts 2023 83
## 6. Tangible fixed assets continued
In respect of signing the contract for the sale of Land at Manor Road, Redbridge on 12 July 2022, consideration will be payable to Guide Dogs should certain events occur. No asset has been recognised in the financial statements as receipt of the consideration is not certain. However, the terms of the agreement establish a contingent asset of £1.0 million (2022: £0.6 million).
## 7. Intangible fixed assets
|7. Intangible fixed assets||
|---|---|
|Group and Charity
Cost or valuation
As of 1 January 2023
Additions
At 31 December 2023
Amortisation
As of 1 January 2023
At 31 December 2023
Net book value 31 December 2023
Net book value 31 December 2022|Assets under
construction total
£m
3.5
2.2|
||5.7|
||-|
||-|
||5.7|
||3.5|
84 Accounts and financial statements
## 8. Investments
|8. Investments|||
|---|---|---|
|a. Analysis of investments
Fixed asset investments
Current asset investments
Total
b. Movement in investments during the year
Market value as of 1 January
Net withdrawals/new investment
Dividends received
Net (loss)/gain on revaluation
Investment management fees
Market value at 31 December
c. Analysis of investments at market value
Listed investments
– United Kingdom
Investments in subsidiaries
Total
d. Analysis of investments at cost
Listed investments
– United Kingdom
Investments in subsidiaries
Total|Group
2023
£m
Group
2022
£m
65.2
83.7
17.0
-
82.2
83.7
Group
2023
£m
Group
2022
£m
83.7
78.3
(5.8)
15.0
0.9
0.9
3.5
(10.3)
(0.1)
(0.2)
82.2
83.7
Group
2023
£m
Group
2022
£m
82.2
83.7
-
-
82.2
83.7
Group
2023
£m
Group
2022
£m
74.7
74.9
-
-
74.7
74.9|Charity
2023
£m
Charity
2022
£m
66.2
84.7
17.0
-|
|||83.2
84.7|
|||Charity
2023
£m
Charity
2022
£m
84.7
78.8
(5.8)
15.5
0.9
0.9
3.5
(10.3)
(0.1)
(0.2)|
|||83.2
84.7|
|||Charity
2023
£m
Charity
2022
£m
82.2
83.7
1.0
1.0|
|||83.2
84.7|
|||Charity
2023
£m
Charity
2022
£m
74.7
74.9
1.0
1.0|
|||75.7
75.9|
At 31 December 2023, the listed investments included holdings in C O I F Charities Investment Fund, managed by C C L A, valued at £34.4 million (2022: £41.8 million) and monies held on deposit in the C O I F deposit account amount to £17.0 million (2022: £nil), as well as £30.8 million (2022: £nil) in Sarasin Endowments Accumulation Fund. The C C L A holding includes £0.6 million (2022: £0.6 million) representing Guide Dogs’ Endowment Funds. Investments held at 31 December 2022 also included holdings in B N Y Mellon’s Newton Sustainable Real Return Fund which was valued at £41.9 million. This account was closed during the year ended 31 December 2023.
The results of the charity’s subsidiaries are discussed in Note 17.
> Annual Report and Accounts 2023 85
## 9. Stocks
|9. Stocks|||
|---|---|---|
|Trading stock
Total|Group
2023
£m
Group
2022
£m
0.3
0.3
0.3
0.3|Charity
2023
£m
Charity
2022
£m
-
-|
|||-
-|
## 10. Debtors
|10. Debtors|||
|---|---|---|
|Trade debtors
Due from subsidiary undertakings
Accrued legacy income
Other accrued income
Financial assets measured at transaction price
Tax Recoverable
Prepayments
Total|Group
2023
£m
Group
2022
£m
0.7
0.3
-
-
56.4
47.8
0.4
0.4
57.5
48.5
1.9
1.6
3.8
2.2
63.2
52.3|Charity
2023
£m
Charity
2022
£m
0.4
0.3
3.3
0.5
56.2
47.5
0.4
0.3|
|||60.3
48.6
1.5
1.5
4.2
2.6|
|||66.0
52.7|
A proportion of legacies receivable may be received after more than 1 year, but in most cases this figure cannot be determined with any accuracy due to the inherent uncertainty in the timing of receipt of legacy income.
In addition to the accrued legacy income, the Charity has been notified of legacies for which no income has been recognised as at 31 December because the income recognition criteria have not been met. The timing and amounts, which approximated to £1.3 million to be received at 31 December 2023, are uncertain. On a case-by-case basis, the value of contested legacies is estimated to amount to £4.2 million (2022: £1.5 million). In addition, there are a further 398 legacies (2022: 384) where a life tenancy exists or conditions attached to the legacy have yet to be met, which are also not included in accrued legacy income.
86 Accounts and financial statements
## 11. Creditors: amounts falling due within one year
|11. Creditors: amounts falling due within|one year||
|---|---|---|
|Trade creditors
Other creditors
Accruals
Financial liabilities measured at transaction price
Tax and social security
Deferred income
Provisions
Total|Group
2023
£m
Group
2022
£m
4.2
3.3
0.6
0.6
5.8
4.8
10.6
8.7
2.1
1.7
1.4
0.1
0.9
0.9
15.0
11.4|Charity
2023
£m
Charity
2022
£m
4.1
2.9
0.6
0.6
5.2
4.6|
|||9.9
8.1
2.1
1.7
1.4
0.1
0.9
0.9|
|||14.3
10.8|
Deferred income relates to fundraising and sports events taking place in 2024. Except for £15,000, all income deferred at the end of December 2022 was released in 2023.
## 12. Creditors: amounts falling due after more than one year
||Group|Group|Charity|Charity|
|---|---|---|---|---|
||2023|2022|2023|2022|
||£m|£m|£m|£m|
|Unfunded pension obligations|0.1|0.1|0.1|0.1|
The unfunded pension obligations are in respect of three (2022: three) retired members of staff.
## 13. Financial instruments
The carrying values of the financial assets and liabilities are summarised below:
|Financial assets measured at transaction price
Debtors (Note 10)
Investments (Note 8)
Cash at bank and in hand
Total|Group
2023
£m
Group
2022
£m
(Restated)
57.5
48.5
17.0
-
18.6
28.2
93.1
76.7|Charity
2023
£m
Charity
2022
£m
(Restated)
60.3
48.6
17.0
-
14.3
25.6|
|---|---|---|
|||91.6
74.2|
Annual Report and Accounts 2023 87
## 13. Financial instruments continued
|13. Financial instruments continued|||
|---|---|---|
|Financial liabilities measured at transaction price
Creditors (Note 11)
Total
Financial assets measured at fair value
Investments (Note 8)
Total
Financial liabilities measured at amortised cost
Unfunded pension obligations (Note 12)
Total|Group
2023
£m
Group
2022
£m
(Restated)
(10.6)
(8.7)
(10.6)
(8.7)
65.2
82.7
65.2
82.7
(0.1)
(0.1)
(0.1)
(0.1)|Charity
2023
£m
Charity
2022
£m
(Restated)
(9.9)
(8.1)|
|||(9.9)
(8.1)|
|||66.2
83.7|
|||66.2
83.7|
|||(0.1)
(0.1)|
|||(0.1)
(0.1)|
Prior year amounts relating to the financial liabilities measured at transaction price have been restated to exclude provisions.
The gains and losses in respect of financial instruments are summarised below:
|Gains/(losses) on financial assets measured at fair value
Investments (Note 8)
Total
Interest income on financial assets measured at fair value
Investments (Note 8)
Total
Interest income on financial assets measured at
transaction price
Interest on current investments
Interest on short-term cash deposits
Total|Group
2023
£m
Group
2022
£m
3.5
(10.3)
3.5
(10.3)
Group
2023
£m
Group
2022
£m
0.9
0.9
0.9
0.9
Group
2023
£m
Group
2022
£m
0.1
-
0.5
-
0.6
-|Charity
2023
£m
Charity
2022
£m
3.5
(10.3)|
|---|---|---|
|||3.5
(10.3)|
|||Charity
2023
£m
Charity
2022
£m
0.9
0.9|
|||0.9
0.9|
|||Charity
2023
£m
Charity
2022
£m
0.1
-
0.5
-|
|||0.6
-|
88 Accounts and financial statements
## 14. Fund balances
|14. Fund balances|||||||
|---|---|---|---|---|---|---|
|Year ended 31 December 2023
– Group
General funds
Designated funds
Restricted funds
Endowment funds
Total|Restated
1 January
2023
£m
96.0
95.2
7.0
0.6
198.8|Income
£m
135.3
-
9.4
-
144.7|Expenditure
£m
(137.4)
-
(7.6)
-
(145.0)|Investment
Gain
£m
3.5
-
-
-
3.5|Transfers
£m
1.4
(1.4)
-
-
-|31 December
2023
£m
98.8
93.8
8.8
0.6|
|||||||202.0|
|Year ended 31 December 2023
– Charity
General funds
Designated funds
Restricted funds
Endowment funds
Total|Restated
1 January
2023
£m
95.4
95.2
6.7
0.6
197.9|Income
£m
134.0
-
10.3
-
144.3|Expenditure
£m
(135.9)
-
(7.6)
-
(143.5)|Investment
Gain
£m
3.5
-
-
-
3.5|Transfers
£m
1.1
(1.1)
-
-
-|31 December
2023
£m
98.1
94.1
9.4
0.6|
|---|---|---|---|---|---|---|
|||||||202.2|
|Year ended 31 December 2022
Comparatives – Group
General fund
Designated fund
Restricted funds
Endowment funds
Total|Restated
1 January
2022
£m
96.0
93.7
6.1
0.6
196.4|Income
£m
127.9
-
14.1
-
142.0|Expenditure
£m
(115.1)
-
(13.2)
-
(128.3)|Investment
Loss
£m
(11.3)
-
-
-
(11.3)|Transfers/
Other
£m
(1.5)
1.5
-
-
-|Restated
31 December
2022
£m
96.0
95.2
7.0
0.6|
|---|---|---|---|---|---|---|
|||||||198.8|
|Year ended 31 December 2022
Comparatives – Charity
General fund
Designated fund
Restricted funds
Endowment funds
Total|Restated
1 January
2022
£m
96.1
93.7
5.8
0.6
196.2|Income
£m
125.9
-
14.1
-
140.0|Expenditure
£m
(113.8)
-
(13.2)
-
(127.0)|Investment
Loss
£m
(11.3)
-
-
-
(11.3)|Transfers/
Other
£m
(1.5)
1.5
-
-
-|Restated
31 December
2022
£m
95.4
95.2
6.7
0.6|
|---|---|---|---|---|---|---|
|||||||197.9|
Restricted funds have been restated owing to an error in the classification of restricted legacy accruals in 2021 and 2022. December 2021 restricted funds have increased by £2.0m and December 2022 restricted funds have increased by £3.4m. As a consequence, general funds have decreased although total funds remain unchanged.
Annual Report and Accounts 2023 89
## 14. Fund balances continued
## Designated funds
|14. Fund balances continued
Designated funds|||||
|---|---|---|---|---|
|Year ended 31 December 2023
– Group
Strategic development of building
Improving Guide Dog capabilities
Electrification of fleet
Technology and innovation
Funds designated for future investment
Fixed assets
People’s Postcode Lottery
Total Designated Funds
Year ended 31 December 2023
– Charity
Strategic development of buildings
Building future capability and increasing reach
Investment in sustainability
Technological innovation
Funds designated for future investment
Fixed assets
People’s Postcode Lottery
Total Designated Funds
Year ended 31 December 2022
Comparatives – Group and Charity
Strategic development of buildings
Improving Guide Dog capabilities
Electrification of fleet
Technology and innovation
Funds designated for future investment
Fixed assets
People’s Postcode Lottery
Total Designated Funds|1 January
2023
£m
20.0
16.2
9.6
6.6
52.4
42.3
0.5
95.2
1 January
2023
£m
20.0
16.2
9.6
6.6
52.4
42.3
0.5
95.2
1 January
2022
£m
21.2
16.5
9.6
9.1
56.4
36.0
1.3
93.7|Designated/
(released)
£m
9.6
1.0
-
(2.3)
8.3
8.7
2.1
19.1
Designated/
(released)
£m
9.6
1.0
-
(2.3)
8.3
9.0
2.1
19.4
Designated
£m
1.2
6.4
-
1.0
8.6
10.9
2.0
21.5|Utilised
£m
(5.2)
(6.2)
-
(2.6)
(14.0)
(3.9)
(2.6)
(20.5)
Utilised
£m
(5.2)
(6.2)
-
(2.6)
(14.0)
(3.9)
(2.6)
(20.5)
Utilised
£m
(2.4)
(6.7)
-
(3.5)
(12.6)
(4.6)
(2.8)
(20.0)|31 December
2023
£m
24.4
11.0
9.6
1.7|
|||||46.7|
|||||47.1
-|
|||||93.8|
|||||31 December
2023
£m
24.4
11.0
9.6
1.7|
|||||46.7|
|||||47.4
-|
|||||94.1|
|||||31 December
2022
£m
20.0
16.2
9.6
6.6|
|||||52.4|
|||||42.3
0.5|
|||||95.2|
90 Accounts and financial statements
## 14. Fund balances continued
## Restricted funds
The Restricted Funds are analysed by restriction in the tables below:
|Year ended 31 December 2023
– Group
Location
Guide dog services
Veterans
Children’s services
Other
Capital
Total Restricted Funds|Restated
1 January
2023
£m
4.3
1.5
0.6
0.3
0.3
-
7.0|Income
£m
5.7
1.2
-
1.0
0.2
1.3
9.4|Expenditure
£m
(4.8)
(1.0)
(0.3)
(0.9)
(0.1)
(0.5)
(7.6)|Transfers
£m
-
-
-
-
-
-
-|31 December
2023
£m
5.2
1.7
0.3
0.4
0.4
0.8|
|---|---|---|---|---|---|
||||||8.8|
|Year ended 31 December 2023
– Charity
Location
Guide dog services
Veterans
Children’s services
Other
Capital
Total Restricted Funds|Restated
1 January
2023
£m
4.3
1.5
0.6
-
0.3
-
6.7|Income
£m
5.7
1.2
-
1.9
0.2
1.3
10.3|Expenditure
£m
(4.8)
(1.0)
(0.3)
(0.9)
(0.1)
(0.5)
(7.6)|Transfers
£m
-
-
-
-
-
-
-|31 December
2023
£m
5.2
1.7
0.3
1.0
0.4
0.8|
|---|---|---|---|---|---|
||||||9.4|
|Year ended 31 December 2022
Comparatives – Group
Location
Guide dog services
Veterans
Children’s services
Other
Capital
Total Restricted Funds|Restated
1 January
2022
£m
2.6
2.1
0.8
0.3
0.3
-
6.1|Income
£m
10.4
2.0
-
1.2
0.1
0.4
14.1|Expenditure
£m
(8.7)
(2.6)
(0.2)
(1.2)
(0.1)
(0.4)
(13.2)|Transfers
£m
-
-
-
-
-
-
-|Restated
31 December
2022
£m
4.3
1.5
0.6
0.3
0.3
-|
|---|---|---|---|---|---|
||||||7.0|
> Annual Report and Accounts 2023 91
## 14. Fund balances continued
|14. Fund balances continued||||||
|---|---|---|---|---|---|
|Year ended 31 December 2022
Comparatives – Charity
Location
Guide dog services
Veterans
Children’s services
Other
Capital
Total Restricted Funds|Restated
1 January
2022
£m
2.6
2.1
0.8
-
0.3
-
5.8|Income
£m
10.4
2.0
-
1.2
0.1
0.4
14.1|Expenditure
£m
(8.7)
(2.6)
(0.2)
(1.2)
(0.1)
(0.4)
(13.2)|Transfers
£m
-
-
-
-
-
-
-|Restated
31 December
2022
£m
4.3
1.5
0.6
-
0.3
-|
||||||6.7|
Restricted income comes primarily from legacies but also from other income streams. Monies received for the South East Region Capital Appeal amounting to £0.5 million have been released against work undertaken on Redbridge. Most funds are utilised in the year of receipt as they are matched to activities already happening in the area. Blind Children U K reserves of £0.3 million (2022: £0.3 million) are treated as restricted.
## 15. Capital commitments and contingent liabilities
At the end of the year the capital commitments relating to property and vehicles for each of the following periods are:
|
vehicles for each of the following periods are:|||
|---|---|---|
|Group
Within one year
Between one year and five years
Beyond five years
Total|2023
£m
4.4
0.3
-
4.7|2022
£m
11.9
-
-|
|||11.9|
These capital commitments will be funded by designated funds.
Contingent liabilities as of 31 December 2023 include legacy indemnities that Guide Dogs has provided to the executors of certain estates. These indemnities provide legal recourse to the recovery of any overpayments up to the total value of receipts by Guide Dogs. The maximum possible liability arising from 31 (2022: 41) indemnities outstanding at the balance sheet date was £1.4 million (2022: £2.5 million) with the majority of indemnity periods being 6 years.
92 Accounts and financial statements
## 16. Other financial commitments
At the end of the year the total of future minimum lease payments under non-cancellable leases for buildings for each of the following periods are:
|Group
Within one year
Between one year and five years
Beyond five years
Total|2023
£m
1.1
2.5
0.6
4.2|2022
£m
0.9
0.6
-|
|---|---|---|
|||1.5|
## 17. 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 1 5 9 6 9 4 5);
2. Blind Children U K (company registration number 3 1 3 3 0 1 8);
3. Guide Dogs U K Limited (company registration number 3 2 5 2 6 9 6);
4. Guide Dogs Limited (company registration number 2 3 3 2 6 2 9);
5. G D B A Community Care Services Limited (company registration number 2 7 3 5 5 1 8); and
6. G D B A (Pension Fund Trustee) Limited (company registration number 1 8 7 0 8 7 1).
Blind Children U K owns the whole of the issued share capital of Blind Children U K (Trading) Limited (company registration number 4 2 4 5 5 8 1).
Of these only the following traded in their own account in 2023:
- [Blind Children U K 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.
- [Guide Dogs U K Limited.]
All companies in the group are domiciled in the United Kingdom and their registered offices are all: Hillfields, Burghfield Common, Reading, Berkshire R G7 3Y G.
No staff are employed directly by subsidiary companies.
Annual Report and Accounts 2023 93
## 17. Subsidiaries continued
## A summary of the trading results and net assets for the year ended 31 December 2023 is shown below:
|Income/turnover
Cost of raising funds/cost of sales
Gross profit
Other operating income
Distribution, selling and administration expenses
Operating profit/(loss) for the financial year
Qualifying charitable donation to Guide Dogs
Result for the year
Reserves at start of year
Capital injection
Reserves at end of year
Current assets
Current liabilities
Net assets at end of year|Blind
Children U K
2023
£m
0.3
-
0.3
-
-
0.3
(0.3)
-
0.3
-
0.3
0.8
(0.5)
0.3|Trading
company
2023
£m
1.2
(0.5)
0.7
0.1
(1.0)
(0.2)
-
(0.2)
0.9
-
0.7
3.3
(2.6)
0.7|Guide Dogs
U K Limited
2023
£m
5.4
(5.1)
0.3
-
(0.1)
0.2
(0.2)
-
-
-
-
1.3
(1.3)
-|Total
2023
£m
6.9
(5.6)
1.3
0.1
(1.1)
0.3
(0.5)
(0.2)
1.2
-
1.0
5.4
(4.4)
1.0|Total
2022
£m
3.0
(1.4)|
|---|---|---|---|---|---|
||||||1.6
0.1
(1.0)|
||||||0.7
(0.7)|
||||||-
0.7
0.5|
||||||1.2|
||||||3.3|
||||||(2.1)|
||||||1.2|
94 Accounts and financial statements
## 17. Subsidiaries continued
## 2022 comparatives
|17. Subsidiaries continued
2022 comparatives|||||
|---|---|---|---|---|
|Income/turnover
Cost of raising funds/cost of sales
Gross profit
Other operating income
Distribution, selling and administration expenses
Operating profit for the financial year
Donation to Guide Dogs
Result for the year
Reserves at start of year
Capital injection
Reserves at end of year
Current assets
Current liabilities
Net assets at end of year|Blind
Children U K
2022
£m
0.6
-
0.6
-
-
0.6
(0.6)
-
0.3
-
0.3
0.6
(0.3)
0.3|Trading
company
2022
£m
1.2
(0.4)
0.8
0.1
(0.9)
-
-
-
0.4
0.5
0.9
1.9
(1.0)
0.9|Guide Dogs
U K Limited
2022
£m
1.2
(1.0)
0.2
-
(0.1)
0.1
(0.1)
-
-
-
-
0.8
(0.8)
-|Total
2022
£m
3.0
(1.4)|
|||||1.6
0.1
(1.0)|
|||||0.7
(0.7)|
|||||-
0.7
0.5|
|||||1.2|
|||||3.3|
|||||(2.1)|
|||||1.2|
> Annual Report and Accounts 2023 95
## 18. Related party transactions
All related party transactions were made on terms equivalent to those that prevail in arm’s length transactions. Expenses reimbursed to Trustees, donations made to the charity by Trustees and the remuneration of the key management personnel of the Charity are disclosed in Note 5.
Emma West, Trustee of Guide Dogs is also a director of Emma West Consulting Limited. In 2023, income from Emma West Consulting Limited was £nil (2022: £4,533.12). James Hambro, Chairman of the Board is also a Trustee of the J and D Hambro Charitable Trust. In 2023, income from the J and D Hambro Charitable Trust was £nil (2022: £11,000). James Hambro is also chairman of James Hambro & Partners. In 2023, income was received from The Dischma Charitable Trust totalling £2,000 (2022: £2,000). The majority of the Dischma Charitable Trust’s investments are invested on a discretionary basis by James Hambro & Partners.
Transactions with the Charity’s defined benefit pension scheme are listed in Note 19.
Details on Guide Dogs’ relationship with its subsidiaries are listed in Note 17. The following discloses related party transactions between Guide Dogs and its subsidiary undertakings:
|Creditor at end of year
Qualifying Charitable Donation to Guide Dogs
Management recharge
Capital injection
Creditor at end of year
Qualifying Charitable Donation to Guide Dogs
Management recharge
Capital injection|Blind
Children U K
2023
£000
(507)
302
-
-
Blind
Children U K
2022
£000
(264)
623
-
-|Trading
company
2023
£000
(2,503)
-
21
-
Trading
company
2022
£000
(909)
-
20
500|Guide Dogs
U K Limited
2023
£000
(324)
252
44
-|
|---|---|---|---|
||||Guide Dogs
U K Limited
2022
£000
(56)
70
74
-|
There were no other transactions during the year that fall within the definition of ‘related party transactions’ (2022: £nil).
96 Accounts and financial statements
## 19. 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 2023 under the scheme’s agreed Recovery Plan, and nil contribution was paid during the year (2022: discretionary contribution payment of £1.0 million).
## Assumptions
The major assumptions used by the actuary were:
|Assumptions
The major assumptions used by the actuary were:|||
|---|---|---|
||2023|2022|
|Discount rate|4.50%|4.70%|
|Rate of increase in salaries|n/a|n/a|
|Rate of increase in payment of pensions (R P I maximum 5%)|2.85%|2.95%|
|Inflation assumption (R P I)|3.00%|3.30%|
|Inflation assumption (C P I)|2.50%|2.80%|
|Life expectancies on retirement at age 60:|||
|Retiring today – males (years)|26.6|27.2|
|Retiring today – females (years)|29.4|29.9|
|Retiring in 20 years – males (years)|28.1|28.6|
|Retiring in 20 years – females (years)|30.8|31.3|
|Cash commutation|75% of|75% of|
||members|members|
||commute|commute|
||25%|25%|
Annual Report and Accounts 2023 97
## 19. Pension costs continued
## Balance Sheet
The assets in the plan were:
|19. Pension costs continued
Balance Sheet
The assets in the plan were:|||
|---|---|---|
|Equities
Properties
Bonds
Inflation swaps
Liability hedging portfolio (swaps)
Other assets in pooled investment fund
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|2023
£m
28.8
3.4
171.6
2.2
(11.0)
11.3
0.2
8.1
214.6
(204.5)
10.1
(10.1)
-|2022
£m
31.7
11.7
166.9
3.0
(23.4)
15.1
0.2
7.8|
|||213.0
(199.7)|
|||13.3
(13.3)|
|||-|
## Analysis of the amount charged to the Statement of Financial Activities
|Analysis of the amount charged 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 loss arising on plans assets
Experience loss arising on plan liabilities
Actuarial gain
Effect of asset ceiling
Actuarial loss
Total amount charged to the Statement of Financial Activities|2023
£m
-
-
(0.6)
(3.3)
-
3.9
-
-|2022
£m
-
-|
|||(135.3)
(8.0)
118.3
24.0|
|||(1.0)|
|||(1.0)|
98 Accounts and financial statements
## 19. Pension costs continued
## Reconciliation of present value of plan liabilities and assets
|19. Pension costs continued
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
Actuarial loss/(gain) on financial assumptions
Actuarial loss/(gain) on demographic assumptions
Experience loss
Benefits paid
Present value of plan liabilities at end of year
Change in plan assets
Fair value of plan assets at start of year
Interest income
Return on scheme assets exceeding interest income
Employer’s contributions
Benefits paid
Fair value of plan assets at end of year|2023
£m
199.7
9.2
3.1
(3.1)
3.3
(7.7)
204.5
2023
£m
213.0
9.9
(0.6)
-
(7.7)
214.6|2022
£m
313.7
5.6
(125.1)
6.8
8.0
(9.3)|
|||199.7|
|||2022
£m
350.4
6.2
(135.3)
1.0
(9.3)|
|||213.0|
## Five-year history History of funding position and experience gains and losses
|Defined benefit obligation
Scheme assets
Effect of asset ceiling
Surplus
Actual return less expected return on plan assets
– amount
– percentage of plan assets
Experience (loss)/gain on plan liabilities
– amount
– percentage of the present value of plan liabilities
Total (loss) recognised in statement of financial activities
– amount
– percentage of the present value of plan liabilities|2023
£m
(204.5)
214.6
(10.1)
-
(0.6)
(0.3%)
(3.3)
1.6%
0.0
0.0%|2022
£m
(199.7)
213.0
(13.3)
-
(135.3)
(63.5%)
(8.0)
4.0%
(1.0)
0.5%|2021
£m
(313.7)
350.4
(36.7)
-
9.7
2.8%
0.5
(0.2%)
(1.0)
0.3%|2020
£m
(334.6)
342.7
(8.1)|2019
£m
(300.4)
310.2
(9.8)
-
30.0
9.7%
(0.3)
0.1%
(1.0)
0.3%|
|---|---|---|---|---|---|
|||||-
37.9
11.1%
13.2
(3.9%)
(0.9)
0.3%||
> Annual Report and Accounts 2023 99
## 20. Analysis of net assets between funds
|Group
Tangible fixed assets
Intangible fixed assets
Investments
Bank balances
Other assets and liabilities
Total
Charity
Tangible fixed assets
Intangible fixed assets
Investments
Bank balances
Other assets and liabilities
Total
2022 comparatives – Group
Tangible fixed assets
Intangible fixed assets
Investments
Bank balances
Other assets and liabilities
Total
2022 comparatives – Charity
Tangible fixed assets
Intangible fixed assets
Investments
Bank balances
Other assets and liabilities
Total|General
funds
£m
-
5.7
55.4
13.1
24.6
98.8
General
funds
£m
-
5.7
56.4
8.8
27.2
98.1
Restated
General
funds
£m
-
3.5
63.1
15.9
13.5
96.0
Restated
General
funds
£m
-
3.5
64.1
13.3
14.5
95.4|Designated
funds
£m
47.1
-
26.2
2.0
18.5
93.8
Designated
funds
£m
47.4
-
26.2
2.0
18.5
94.1
Designated
funds
£m
42.3
-
20.0
10.1
22.8
95.2
Designated
funds
£m
42.3
-
20.0
10.1
22.8
95.2|Restricted
funds
£m
-
-
-
3.5
5.3
8.8
Restricted
funds
£m
-
-
-
3.5
5.9
9.4
Restated
Restricted
funds
£m
-
-
-
2.2
4.8
7.0
Restated
Restricted
funds
£m
-
-
-
2.2
4.5
6.7|Endowment
funds
£m
-
-
0.6
-
-
0.6
Endowment
funds
£m
-
-
0.6
-
-
0.6
Endowment
funds
£m
-
-
0.6
-
-
0.6
Endowment
funds
£m
-
-
0.6
-
-
0.6|Total
2023
£m
47.1
5.7
82.2
18.6
48.4
202.0
Total
2023
£m
47.4
5.7
83.2
14.3
51.6
202.2
Total
2022
£m
42.3
3.5
83.7
28.2
41.1
198.8
Total
2022
£m
42.3
3.5
84.7
25.6
41.8
197.9|Total
2022
£m
42.3
3.5
83.7
28.2
41.1|
|---|---|---|---|---|---|---|
|||||||198.8|
|||||||Total
2022
£m
42.3
3.5
84.7
25.6
41.8|
|||||||197.9|
||||||||
100 Accounts and financial statements
## 21. Notes to cash flow statement
## Reconciliation of net income to net cash inflow from operating activities
|Net income for the financial year
Investment (gain)/loss
Investment income
Depreciation
Net gain on disposal of tangible fixed assets
(Increase)/decrease in debtors
Increase in creditors
Pension scheme contribution
Net cash (outflow)/inflow from operating activities|2023
£m
3.2
(3.4)
(1.5)
3.8
(0.1)
(10.8)
2.9
-
(5.9)|2022
£m
3.4
10.3
(0.9)
3.5
(0.3)
9.9
1.8
(1.0)|
|---|---|---|
|||26.7|
> Annual Report and Accounts 2023 101
## 22. Comparative consolidated statement of financial activities
Incorporating an income and expenditure account For the year ended 31 December 2022
|
For the year ended 31 December 2022|||||
|---|---|---|---|---|
|Notes
Income and endowment from:
2
Donations and legacies
Charitable activities
Other trading activities
Investments
Other income
Total income
Expenditure on:
3
Raising funds
Charitable activities
Provision of guide dogs services
Provision of other adult services
Provision of other children’s services
Research and development
Advocacy and awareness
Total expenditure on charitable activities
Total expenditure
Net loss on investments
Net Income for the year
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
(Restated)
£m
117.0
1.3
8.4
0.9
0.3
127.9
32.6
52.0
9.1
8.8
0.7
11.9
82.5
115.1
(10.3)
2.5
(1.0)
1.5
189.7
191.2|Restricted
funds
(Restated)
£m
14.1
-
-
-
-
14.1
-
11.8
0.2
1.2
-
-
13.2
13.2
-
0.9
-
0.9
6.1
7.0|Endowment
funds
£m
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.6
0.6|Total
2022
£m
131.1
1.3
8.4
0.9
0.3|
|||||142.0|
|||||32.6|
|||||63.8
9.3
10.0
0.7
11.9|
|||||95.7|
|||||128.3|
|||||(10.3)|
|||||3.4|
|||||(1.0)|
|||||2.4|
|||||196.4|
|||||198.8|
102 Major gifts and donations
## Major gifts and donations
None of our work is possible without the support of so many. To those who made 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.
For their significant support, our thanks go to:
## Major donors
Mr and Mrs Gilchrist
C V S Group plc
Dezna Robins Jones Charitable Foundation
Dave Thomas
Mr Lean
Give a car
The Autumn Leaf Foundation
The Eggleston Charitable Foundation
Simon Muchmore and Christine Morrell
Mr and Mrs P Hawkins
Gleann Mòr Spirits Ltd.
Kenyon Group (Glue guns direct.com)
Knightsbridge School
Lucy’s Bowl
Muriel Jones Foundation
Mr P G Ball
Hessle Dog Rescue
Corby and District Dog Training Club
Mrs Willan and the late Mr Ward
Marks & Spencer
Mayor of Cardiff
Nizels Golf Club
Pay Pal Giving Fund U K
Pentland Jaguar Land Rover
Pet plan
## Corporate partners
Accenture
Pet plan Charitable Trust
Pets at Home V I P Members
A I B – Allied Irish Bank
Players of People’s Postcode Lottery
Citi
Scot mid
Swiss Re Foundation
Coffi Lab Ltd.
> Annual Report and Accounts 2023 103
## Trusts
T M Clark Charitable Trust George W Walsh Seeing-Eye Dog Foundation Lidbury Family Trust Alan Brentnall Charitable Trust Mrs Margaret Chattell Charitable Trust Trevor Hemmings Foundation Joron Charitable Trust Alan Chinery Charitable Trust Mrs H E Mitchell Trust Miss A I Parnell’s Charitable Trust Audrey Wilson Charitable Settlement Wyfold Charitable Trust Share Gift (The Orr Mackintosh Foundation) Maureen Boal Charitable Trust Disc world Foundation Highfields Trust C I O
## Funds
|Funds|||
|---|---|---|
|Funder
Glasgow City Council/Blind craft Trust
Children in Need/Main Grants Scheme
National Lottery Community Fund/
Awards for All England
Liverpool City Council/Community Resource Grant
The Health and Social Care Alliance Scotland/
Scottish Government/Self-Management Fund
Corra Foundation/Scottish Government
Avanti West Coast
South Western Rail
London North Eastern Rail
Cross Country Rail
Angus County Council|Programme/Project
My Sighted Guide (Scotland)
My Time to Play (South West)
Family Events
My Sighted Guide (Liverpool)
Technology Hub
Core Habilitation and My Time to Play
My Sighted Guide
My Sighted Guide
My Sighted Guide
My Sighted Guide
Family Event|Award|
|||£20,000|
|||£21,808|
|||£10,000|
|||£10,000|
|||£35,100|
|||£68,420|
|||£25,605|
|||£25,605|
|||£48,635|
|||£25,605|
|||£3,000|
Guide Dogs Hillfields Burghfield Common Reading Berkshire R G7 3Y G
## guidedogs.org.uk
Guide Dogs is a working name of The Guide Dogs for the Blind Association. Registered Office: Hillfields, Burghfield Common, Reading, Berkshire R G7 3Y G. A company limited by guarantee registered in England and Wales (2 9 1 6 4 6) and a charity registered in England and Wales (2 0 9 6 1 7), Scotland (S C 0 3 8 9 7 9) and Isle of Man (1 3 3 4). C 0 0 1 07/24