2021-03-31-accounts

Conquering the unknown Deafblind UK annual report 2021 Consolidated statement of financial activities (Incorporating a consolidated income and expenditure account) for the year ended 31 March 2021. Company Registration No. 02426281 (England and Wales) Charity No. 802976.

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Contents

1.	Welcome from the Chairman and	6. Financial review ........................16
	Chief Executive ...........................1	Covid ...........................................17
2.	Public beneft .............................2	Reserves Policy ..........................17
3.	Who are we? ...............................3	Investment Policy ........................17
4.	Our year – conquering the unknown ......................................5	7. Independent auditors report ...19 Opinion .......................................20
a.	We knew that our support was	Basis for opinion .........................20
	going to be vital throughout the	Conclusions relating to going
	pandemic ......................................5	concern .......................................21
b.	We knew that we had to act, to maintain fnancial sustainability ...7	Other information ........................21 Other matters prescribed by
c.	We knew we had a great story	the Companies Act 2006 ............21
	to tell .............................................8	Matters on which we are
d.	We knew we had the right team ...9	required to report by exception ..22
e.	We knew we would learn	Responsibilities of Trustees .......22
5.	from this ......................................10 Structure, Governance and Management ..............................11	Auditors’ responsibilities for the audit of the fnancial statements .23 Use of our report .........................25
	Legal status and Group ..............11
	Statement of Trustees’
	responsibilities ............................12
	Statement of disclosure
	to auditor .....................................12
	How we are managed .................13
	Director recruitment, induction
	and training .................................14

• a. Consolidated statement of financial activities (Incorporating a consolidated income and expenditure account) For the year ended 31 March 2021 ................26

• b. Consolidated balance sheet – For the year ended 31 March 2020 ..27

• c. Charity balance sheet – For the year ended 31 March 2020 ........28

• d. Group cash flow statement – For the year ended 31 March 2020 ..29

• e. Group cash flow statement – For the year ended 31 March 2020 ..30

f. Accounting policies – For the year ended 31 March 2020 ................31 Charity information ......................31 Basis of accounting .....................31 Basis of consolidation .................31 Going concern ............................31 Fixed assets ................................32 Depreciation ................................32 Impairment of fixed assets ..........32 Stocks .........................................33 Operating lease agreements ......33 Pension costs .............................33 Funds ..........................................34

Income ........................................34 Income from other trading activities ......................................34 Investment income ......................34 Income from charitable activities 35 Expenditure and irrecoverable VAT .............................................35 Financial instruments ..................35 Debtors .......................................35 Cash............................................35 Creditors .....................................35 Taxation ......................................36 Employee benefits ......................36 Retirement benefits .....................36 Critical accounting estimates and areas of judgement ..............36 Critical accounting estimates and assumptions .........................36 Income from grants and trusts 2020 – 21 ....................................37 Thank you to our funders ............38

8. Notes to the Accounts ..............39 Note 1. Income from grants and trusts 2019–20 ............................39 Note 2. Investment income.........39 Note 3. Income from charitable activities ......................................39 Note 4. Income from subsidiary’s trading activities ..........................40 Note 5. Fundraising costs ...........41 Note 6. Charitable activities ........41 Note 7. Staff costs ......................43 Note 8. Net income/(expenditure) 44 Note 9. Tangible fixed assets – Group ..........................................45 Tangible fixed assets (continued) – Charity ..................46 Note 10. Investments .................47 Note 11. Debtors .........................47 Note 12. Creditors ......................48 Note 13. Restricted Funds 2020– 2021 ............................................49 Restricted Funds 2019–2020 .....50

Note 14. Unrestricted funds 2020–21 ......................................53 Unrestricted funds 2019–20 .......54 Note 15. Analysis of net assets 2020–21 ......................................55 Analysis of net assets 2019–20 .55 Note 16. Financial instruments ...56 Note 17. Related party transaction ..................................56 Note 18. Company limited by guarantee....................................56 Note 19. Pensions ......................56 Note 20. Contingent liability ........56 Note 21. Comparative consolidated statement of financial activities by fund ........................................57 Note 22. Comparative analysis of charitable activities (Note 6) – RESTATED .................................58

The Board of Trustees

The Trustees, who are also Directors for the purpose of the Companies Act, take pleasure in presenting the report and the financial statements of the charity and subsidiary companies for the year ended 31 March 2021.

R Nolan (Chair) deafblind J Churcher deafblind A Hussain deafblind R Wilson-Hinds deafblind J Greenhalgh (retired 30 September 2020)

G Foy M Nagra S Critoph

Registered Office National Centre for Deafblindness Paston Ridings Peterborough PE4 7UP

Auditor

Peterborough Business Park, Westpoint, Lynch Wood, Peterborough PE2 6FZ

Bankers

Barclays Bank Peterborough Business Centre Peterborough PE1 1XE

Company Secretary | R Cullen

Chief Executive | S Conway

Welcome from the Chairman and Chief Executive 1.

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Steve Conway Robert Nolan
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Throughout this financial year we, like everyone else, have had to adapt to deal with the consequences of the global Covid pandemic. Even during those brief periods outside of lockdown, the very necessary restrictions have caused major disruption to the way we deliver our services and for the community we serve. We carried out a review of our strategy and found that with a few adjustments it remained valid and achievable. We also found our values would help us as we found new ways of engaging and communicating.

We set a balanced budget at the start of the year despite the uncertainty surrounding the pandemic. With the support of Government funding and with many trusts providing emergency funding together with a significant reduction in our expenditure we returned a healthy surplus.

Thanks to the commitment, resilience, and hard work of all our staff, this report will illustrate how well we have performed this year despite all the challenges. We are confident that as we recover from the pandemic, we will be able to further develop our services to support more people of all ages who are deafblind.

Steve Conway, CEO Robert Nolan, Chair

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2. Public benefit

In setting activities and objectives each year, the Directors refer to the Charity Commission’s general guidance on public benefit. The Directors always ensure that the activities, services or programmes undertaken are in line with the charitable objects and aims of the organisation.

Fundraising

Deafblind UK complies with the Code of Fundraising Practice. We have also volunteered to be part of the Fundraising Preference Service, through which, when requested, we removed one individual’s details in this reporting period. The vast majority of our activity to reach new donors and supporters is undertaken by our fundraising team who have significant understanding of our service delivery.

Where we have worked with an external organisation, we ensure they are registered with the relevant bodies and we conduct appropriate due diligence prior to contract commencement. In addition to a new fundraising strategy, our focus is to develop procedures to enable our

staff, volunteers and suppliers to carry out fundraising activities aligned with our policy and current UK regulation and legislation.

Deafblind UK did not receive any complaints in relation to fundraising activities in 2020 – 21. As a charity that works directly with people in vulnerable circumstances, it is a fundamental value that no donation is sought from someone who may not have the capacity to make an informed and considered decision. We are fully compliant with the latest General Data Protection Regulations (GDPR) ensuring that all communications are only sent to the right people.

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Who are we? 3.

We are Deafblind UK.

We exist because too many people are living with deafblindness and not getting the help they need.

We show people that there can be a life beyond deafblindness.

Our mission is to work with people who are deafblind, making connections and delivering quality support and information to enable people who are deafblind to live more independently and with greater confidence and increased control.

“You have done a lot for me, thank you a million percent for all your help.”

Graham, Deafblind UK member and army veteran.

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a.

What do we do?

Practical help

It can be difficult to live with deafblindness. Everyday activities become huge challenges and the inaccessibility of the world around you can become exhausting to navigate.

We teach people how to use technology to their advantage and to re-connect with the world around them.

We provide self-catering holiday accommodation at heavily discounted rates for our members and their families to enjoy a break for which they might not have otherwise had the opportunity.

Open Hand magazine continues to be popular amongst our members and their networks, providing stories, advice and information specifically tailored to deafblind readers.

Our support workers help people in their own homes and their local communities to do the things that they love doing.

Our supported living complex provides homes for 17 people, in a safe and welcoming environment.

Emotional support

The practical difficulties of being deafblind can take their toll on mental health. We help people to make sense of their feelings and to improve their emotional wellbeing.

Our helpline is available in a range of communication methods for anyone who needs support, advice or information.

We offer a six-week support service for those who need some longer term, progressive emotional support.

Our volunteer befrienders provide much needed social interaction to those people who find themselves alone or isolated.

We introduce our members to each other and encourage them to make connections through our social groups.

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4. Our year – conquering the unknown

This was no ordinary year! The Covid pandemic has thrown many unknowns at us. To conquer this, we focused on what we did know…

We knew that our support was going to be vital a. throughout the pandemic

We brought forward the launch of our new emotional support and wellbeing service from June to April. This included contacting all our members at least once a week during the first lockdown, to check on their physical and mental wellbeing.

When the country went into lockdown in Spring 2020, our members needed us more than ever. People were struggling to get food, they were scared and they were unsure of what they were supposed to do. The social groups and befrienders that were often their only regular social interaction stopped and like the rest of the country, they were alone.

In May 2020 we launched our veterans services to give deafblind armed forced personnel specific, relevant support in areas such as pensions and benefits and to link them to other veterans for moral support.

We acted quickly and re-modelled our services to provide as much remote support as we could. We increased our opening hours and re-purposed staff to help with the increase in demand.

“I’m so grateful that someone will be calling. I’ve felt so isolated and now I have something to look forward to. I’ve got a smile on my face right now as I know someone will be there. You’re all doing a fantastic job – thank you so much.”

Jenny, Deafblind UK member.

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People who are deafblind face the unknown every day.

As an organisation we were operating in a completely different environment. We had no choice but to react and adapt. We were pushed out of our comfort zone every day, not knowing what was around the corner.

As a result, we became closer to our members, understanding more of the isolation and loneliness that they face every day. Our increased contact with them during this time also brought us closer to them and, as a result, we feel that we now know them better.

This insight has led to us developing our services so that we can support our members even better in the future. Perhaps the most significant change was to de-regionalise our services. Until this year, our services were geographically focused in areas where we could have a physical staff presence. The pandemic has taught us that by operating more remotely, we can provide quality support across the country, eradicating the previous ‘gap areas’.

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We knew that we had to act, to maintain financial b. sustainability

In March 2020 we were forced to close our shop and our conference centre – two of our biggest revenue streams. This had a devastating effect on our income.

The name of the National Centre for Deafblindness and its functions have transferred to our residential facility at Rainbow Court which is also in Peterborough.

However, we were fortunate enough to access many of the emergency Covid funds available from trusts. Many of these supported our wellbeing service, in which we were seeing the greatest demand.

The funds generated by the sale allow us to maintain and develop our services, reach more people, and have a greater impact.

Our income streams have been decimated due to the pandemic. Income from our conference centre, retail, and regional activity had virtually gone, and with little hope of recovery for many months. Legacy income is in jeopardy as people take stock of the impact on their finances due to the pandemic.

In April 2020 we ran an emergency public appeal and generated nearly £10,000 from our loyal supporters. This allowed us to keep our helpline running during this difficult period. In October 2020 we completed on the sale of our headquarters building in Peterborough, the National Centre of Deafblindness. This was a tough decision to make but we have felt for some time that, for many years, the building has not been used as it was originally intended. The Covid pandemic has taught us that we do not need large premises, as staff are able to work from home and be just as productive, as the last few months have proved.

The sale of our HQ building will mitigate our immediate losses and help offset less income in the next two to three years. The Covid pandemic has thrown up many more needs for our members, and reinforced that more people need support; so if we are to survive and thrive as a charity then our need for funding is higher than ever.

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c.

We knew we had a great story to tell

Covid also presented opportunities to work with large partners who suddenly found themselves with time to give. Staff from UK Power Networks, London Luton Airport and a large fashion house, volunteered their time and expertise to help us help our members. This provided an invaluable opportunity to build relationships and encourage long term support from our partners.

Increased press interest in disability during the first lockdown gave us an ideal opportunity to talk to an engaged audience about deafblindness.

Exposure through BBC, ITV, The Times, The Metro and other outlets led to increases in donations and volunteer applications as well as improved awareness.

“The telephone befriender and wellbeing calls have been a godsend. To be able to speak to someone about how I’m feeling really helps me. It’s amazing that this all comes from a charity and it would be devastating if we couldn’t get support from you.”

Joan, Deafblind UK member.

“I have found the calls hugely valuable as, being blind I physically live in darkness and not having contact with other people makes my world very silent. I look forward to the calls as it breaks up the silence.”

Roger, Deafblind UK member.

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d.

We knew we had the right team

We are immensely proud of how our team handled the last year, adapting and pulling together to help. Whilst office staff were working from home, juggling home-schooling and working around the clock, our support workers continued to provide close contact support to ensure that our customers were not alone.

We know we have the right team in place and throughout the year we have made the most of any opportunities to develop them through internal and external training, mentoring and CPD sessions, ensuring we have the right team in place to take us forward.

We quickly learned that we can operate from a remote environment – and do so very well. Platforms such as Teams and Zoom have enabled us to provide services, like social groups, via video calls. Technology has proved so important to our new way of working that we are arranging our first virtual Deafblind Convention for October 2021.

“Fantastic, looking forward to seeing the lovely staff – they’re like a second family!”

A Facebook comment from a shop customer in response to a post about the shop re-opening post-lockdown.

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e. We knew we would learn from this

Deafblind UK is a very different organisation now to when we started the year. Our focus, determination and core values remain but operationally we have pushed ourselves to be more member-centric and efficient.

We have learned from our members, our supporters and from the amazing external teams with whom we have had the benefit of working.

We are now, financially and operationally, well placed to support people who are deafblind to adapt to and live with the new normal, for years to come.

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5. Structure, Governance and Management

Legal status and Group Deafblind UK is a registered charity (Registration No. 802976) and company limited by guarantee and is governed by its Articles of Association. It was founded in 1928 by deafblind people and their carers.

Deafblind UK’s Board of Trustees (herein called Directors) have established a group of organisations to support the work of Deafblind UK. These comprise Deafblind UK Trading Limited (Company No. 5082057), and About Me Care and Support Limited (Company No. 7945990).

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Statement of Trustees’ responsibilities

Statement of disclosure to auditor

The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales 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 charity and the group and of the incoming resources and application of resources of the charity and the group for that period. In preparing these financial statements, the Trustees are required to:

• Select suitable accounting policies and then apply them consistently and observe the methods and principles in the Charities SORP (FRS102)

• Make judgements and estimates that are reasonable and prudent.

■ State whether applicable 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 charity will continue in business

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and applicable accounting regulations. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

1. So far as the Trustees are aware, there is no relevant audit information of which the Charity’s auditors are unaware, and

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

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How we are managed

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Director recruitment, induction and training

We are committed to ensuring the Board comprises a mix of Directors who are deafblind and those who are sighted hearing.

The Directors are responsible for the strategic direction and policy of the organisation and are elected by voting members. The Board is kept up to date with any major changes in the Charities Act and Charity Commission guidance and best practice. Directors do not receive a salary but may claim out of pocket expenses for attending meetings.

All new Directors follow an agreed robust and detailed Trustee Induction Programme to ensure they fully understand their responsibilities as Trustees.

Risk management

The Trustees have a risk management strategy which comprises:

• An annual review of the principal risks and uncertainties the charity faces

• The establishment of policies, systems and procedures to mitigate those risks identified in the annual review

• The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise

• Quarterly risk register reports to the Board

Financial sustainability remains the major financial risk for the charity. The full impact of Covid is yet to be established; however early indications are that this will significantly affect the overall income of the charity. The shop will remain closed until at least 12 April 2021. Community based fundraising and general donations have fallen sharply.

Covid has also adversely affected contracted services income, although there has been financial support from some local authorities with additional payments for services. The management team has reduced expenditure wherever possible and utilised the Covid Job Retention Scheme for nonessential roles.

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We continue to see an increase in the time taken for distribution of estates from legacies, predominantly due to slower than expected sales of property. Although Deafblind UK does not have any funding directly from Europe, the fundraising marketplace has been significantly more competitive since 2016 as a result of other organisations seeking to replace EU funding. We expect this to continue in the next few years.

Attention remains focused on non-financial risks such as safeguarding, retention of key staff and recruitment of support workers for our care and support services. We have embedded a robust process of policies and procedures to successfully comply with the General Data Protection Regulations (GDPR) however impact of legislative changes remain a risk to member and donor growth.

All of the above risks are managed by a risk register which is regularly updated and reviewed quarterly at Board meetings.

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6. Financial review

The Deafblind UK accounts for the year ending 31 March 2021 show a surplus of £852,031 (2020: £38,071). Income increased to £3,405,585 (2020: £3,196,431) which is an increase of £209,154, or 6.5%.

Despite a particularly difficult financial climate that put substantial pressures on all areas of the organisation, income from grants, trusts and legacies increased in the year. Overall donations and legacy income grew by £727,021 from the previous year; an increase of 50%. We were successful in obtaining a number of Covid-19 emergency grants. That funding, of course, was ‘one-off’ and we do not anticipate this level of income being maintained in the current financial climate.

Deafblind UK received 63% (2020: 45%) of its income from voluntary sources, such as trusts and foundations, the Big Lottery Fund, and legacies. The Covid-19 pandemic has thrown up many more needs for our members, and reinforced that more people need support; so, our need for funding is higher than ever, if we are to survive and thrive as a charity.

With such a high level of uncertainty caused by the pandemic, Trustees decided to secure the long-term future of the charity by making the extremely difficult decision to sell the National Centre in Hampton, Peterborough. This building had the dual use of housing the head office function and operated as a conference centre for external organisations. This sale was completed in November 2020. Conference centre activity, alongside retail, was included in Deafblind UK Trading Ltd.

The Conference Centre was a significant source of income for the charity, however trustees understood that post pandemic there might be a very limited market for hired rooms. An alternate building to operate as the new head office was identified on the charity’s other site in Peterborough, Rainbow Court. This ensured minimal disruption, whilst saving potential lease costs that a new office would incur. Government regulations enforced the closure of the conference centre from the start of the year until the sale in November. The charity shop was also closed for a large

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portion of the year. Therefore, turnover fell sharply in the trading company by 86% (2021 £61,491 2020: £448,088).

Overall expenditure in the year decreased by nearly 20%. Total expenditure in the Consolidated Statement of Financial Activities (SOFA) was £2,553,554 (2020: £3,158,360). With the inevitable reduced activity during the year, a fall in expenditure was to be expected. However, there continues to be a concerted effort to minimise all expenditure, especially in organisational overheads with the reduction in headcount and the move to outsourced services. A demonstrable cost saving has been secured, whilst maintaining a high level of support to the charity. Further savings will be identified in 2021/22. Termination payments for redundancies were also paid during the year, these are detailed in Note 7.

A detailed analysis of income and expenditure is shown in the SOFA on page 26 and in notes 1 to 8 of these accounts.

The net assets of the group as shown in the consolidated balance sheet at year end amount to £4,844,797.

Covid

Deafblind UK continues to operate in a very difficult climate, and this is expected to continue for the majority of 2021–2022.

The charity and the trading company have reduced all possible expenditure and utilised the Covid Job Retention Scheme where possible.

Reserves Policy

The policy for free reserves held by the charity is to have a minimum of three months with desire to hold no more than six months operating costs. This policy was reviewed at the Board in March 2021 as part of the annual review process. The charity free reserves at the year-end were 4.2 months’ operating costs.

Total funds at the end of the reporting period were, £4,844,797 of which £169,645 were restricted.

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Investment Policy

As of the end of the year the proceeds of the sale of the National Centre were sitting in cash, but since year end we have allocated these funds into an investment fund.

Deafblind UK has appointed a professional investment management firm to manage the assets (excluding the direct property) on a discretionary basis in line with the investment policy. The investment manager provides custody of assets. The manager is required to produce a valuation and performance report quarterly. The objective of these investments is to maintain the real value of the assets whilst aiming to generate additional funds to support the charitable objectives.

The Trustees have decided to pursue two strategies for the Charity’s combined investments. One portfolio is invested at low risk, the other at medium risk. All investments are subject to Environmental, Social and Governance (ESG) parameters agreed with the Board of Trustees.

Cash reserves are maintained in a spread of interest-bearing deposits with reputable UK based financial institutions which meet our ethical standards.

Deposits are selected which provide the best return available under current market conditions, whilst ensuring sufficient liquidity to provide operating capital and to cover capital requirements.

The policy and portfolio of deposits are regularly kept under review by the Board.

Approved by the Trustees on 8 September 2021.

R Cullen Company Secretary

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1. Independent auditors report

Opinion

We have audited the financial statements of Deafblind UK (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise consolidated statement of financial activities, consolidated balance sheet, charity balance sheet, group cash flow statements and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

■ Give a true and fair view of the state of the affairs of the group and the parent charitable company as at 31 March 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

■ Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• Have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

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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 or 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.

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

We have nothing to report in this regard.

Other matters prescribed by the Companies Act 2006

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

■ The information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

■ The Trustees’ Annual report has been prepared in accordance with applicable legal requirements.

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Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:

• 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 trustees’ remuneration specified by law are not made; or

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

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 12, the Trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the 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 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.

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Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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

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 specific procedures for

this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sector in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

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Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business.

We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 or intentional misrepresentations, or through collusion.

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

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Use of our report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members 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 parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Hill (Senior Statutory Auditor) For and on behalf of Saffery Champness LLP

Chartered Accountants and Statutory Auditors Peterborough Business Park, Westpoint, Lynch Wood, Peterborough PE2 6FZ

Date:

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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a.

Consolidated statement of financial activities (Incorporating a consolidated income and expenditure account) For the year ended 31 March 2021

Income from: Notes Donations and legacies Legacies Grants and trusts 1 Other donations Other trading activities Commercial trading operations Fundraising income Non-charitable trading Charitable activities Contracted services 3 Income from property 3 3 Investment income 2 Total income Expenditure on: Raising funds Fundraising costs 5 Commercial trading operations Charitable activities 6 Total expenditure Net income/(expenditure) and net movement in funds for the year Transfers between funds Total funds brought forward Total funds carried forward	Unrestricted funds £ 661,325 455,262 206,011		Restricted funds £ 849,066		Total funds 2021 £ 661,325 1,304,328 206,011		Total funds 2020 £ 378,341 863,016 203,286
	1,322,598 61,491 10,622 11,606		849,066		2,171,664 61,491 10,622 11,606		1,444,643 448,088 47,324 16,410
	83,719 904,504 244,350		-		83,719 904,504 244,350		511,822 1,046,608 192,441
	1,148,854		-		1,148,854		1,239,049
	1,348				1,348		917
	2,556,519		849,066		3,405,585		3,196,431
	293,914 156,585 1,345,040		758,015		293,914 156,585 2,103,055		288,526 310,602 2,559,232
	1,795,539		758,015		2,553,554		3,158,360
	760,980 22,360 3,891,812		91,051 (22,360) 100,954		852,031 - 3,992,766		38,071 - 3,954,695
	4,675,152		169,645		4,844,797		3,992,766

The Consolidated statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities. Commercial trading income includes £nil (2020 – £nil) of income from discontinued operations.

Comparative figures are included in notes 21 and 22.

As permitted by section 408 of the Companies Act 2006, the parent Charity’s Statement of Financial Activities has not been included in these financial statements. The parent Charity’s total incoming resources for the year were £3,322,968 (2020: £2,748,343). The net surplus/(deficit) for the year for the Charity was £925,999 (2020: £25,432).

The accounting policies and notes on pages 39 to 58 form part of these financial statements.

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b. Consolidated balance sheet For the year ended 31 March 2020

Notes Fixed assets Tangible assets 9 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Total assets less current liabilities Net assets Funds of the group Restricted funds 13 Unrestricted funds 14 Total funds	2021 £ £ 496,638 353,095 4,468,103 4,821,198 (473,040) 4,348,158 4,844,797 4,844,797 169,645 4,675,152 4,844,797	2021 £ £ 496,638 353,095 4,468,103 4,821,198 (473,040) 4,348,158 4,844,797 4,844,797 169,645 4,675,152 4,844,797	2020 £ £ 3,015,428 462,159 880,571 1,342,730 (365,392) 977,338 3,992,766 3,992,766 100,954 3,891,812 3,992,766	2020 £ £ 3,015,428 462,159 880,571 1,342,730 (365,392) 977,338 3,992,766 3,992,766 100,954 3,891,812 3,992,766
		4,844,797		3,992,766
		169,645 4,675,152		100,954 3,891,812
		4,844,797		3,992,766

These financial statements were approved and authorised for issue by the Trustees on the 8 September 2021 and signed on their behalf by:

R Nolan (Chair) Trustee

Company Registration No. 02426281 Charity No. 802976

The accounting policies and notes on pages 39 to 58 form part of these financial statements

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Charity balance sheet c. For the year ended 31 March 2020

Note Fixed assets Tangible assets 9 Investments 10 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Total assets less current liabilities Net assets Funds of the Charity Restricted funds 13 Unrestricted funds 14 Total funds	2021 £ £ 484,386 10 484,396 485,365 4,407,887 4,893,252 (452,327) 4,440,925 4,925,321 4,925,321 169,645 4,755,676 4,925,321	2021 £ £ 484,386 10 484,396 485,365 4,407,887 4,893,252 (452,327) 4,440,925 4,925,321 4,925,321 169,645 4,755,676 4,925,321	2020 £ £ 2,971,529 10 2,971,539 453,053 785,548 1,238,601 (300,006) 938,625 3,910,164 3,910,164 100,954 3,809,210 3,910,164	2020 £ £ 2,971,529 10 2,971,539 453,053 785,548 1,238,601 (300,006) 938,625 3,910,164 3,910,164 100,954 3,809,210 3,910,164
		484,396		2,971,539
		4,440,925		938,625
		4,925,321		3,910,164
		4,925,321		3,910,164
		169,645 4,755,676		100,954 3,809,210
		4,925,321		3,910,164

As permitted by Section 408 of the Companies Act 2006, the parent Charity’s Statement of financial activities has not been included in these financial statements. The unconsolidated figure for the net income of the charity, including donations from the subsidiaries, would have been £925,999 (2020: £99,415). Details concerning the subsidiary companies, along with their results and financial position are set out in note 4.

These financial statements were approved and authorised for issue by the Trustees on the 8 September 2021 and signed on their behalf by:

R Nolan (Chair)

Trustee

Company Registration No. 02426281 Charity No. 802976

The accounting policies and notes on pages 39 to 58 form part of these financial statements.

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Group cash flow statement d. For the year ended 31 March 2020

Net cash used in operating activities Cashfows from investing activities Interest received Proceeds from sale of fxed assets Purchase of plant and equipment Net cash (used in)/provided by investing activities Change in cash in the year Cash at the beginning of the year Cash at the end of the year Reconciliation of net income/ expenditure to net cash fow from operating activities Net income/(expenditure) for the year Interest received Proft on disposal Impairment Depreciation Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash used in operating activities Analysis of cash Cash in hand	2021 £ £ 1,078,528 1,348 2,563,000 (55,344) 2,509,004 3,587,532 880,571 4,468,103 852,031 (1,348) (114,121) - 125,685 109,064 107,217 1,078,528 2021 £ 4,468,103	2021 £ £ 1,078,528 1,348 2,563,000 (55,344) 2,509,004 3,587,532 880,571 4,468,103 852,031 (1,348) (114,121) - 125,685 109,064 107,217 1,078,528 2021 £ 4,468,103	2020 £ £ 239,745 917 - (133,240) (132,323) 107,422 773,149 880,571 38,071 (917) - - 134,841 71,827 (4,077) 239,745 2020 £ 880,571	2020 £ £ 239,745 917 - (133,240) (132,323) 107,422 773,149 880,571 38,071 (917) - - 134,841 71,827 (4,077) 239,745 2020 £ 880,571
		3,587,532 880,571		107,422 773,149
		4,468,103		880,571
		852,031 (1,348) (114,121) - 125,685 109,064 107,217		38,071 (917) - - 134,841 71,827 (4,077)
		1,078,528		239,745
		2021 £ 4,468,103		2020 £ 880,571

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Group cash flow statement e. For the year ended 31 March 2020

Analysis of Changes in net debt Cash Total	31 Mar 2020 Cashfows Acquisition/ Disposal of subsidiaries New fnance leases Fair value movements Foreign exchange movements Other non- cash changes 31 Mar 2021 880,571 3,587,532 - - - - - 4,468,103
	880,571 3,587,532 - - - - - 4,468,103

The accounting policies and notes on pages 31 to 58 form part of these financial statements.

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f. Accounting policies For the year ended 31 March 2020

Charity information

Deafblind UK is a Charity domiciled and incorporated in England and Wales. The registered office i

The National Centre for Deafblindness, Paston Ridings, Peterborough, PE4 7UP.

Basis of accounting

The financial statements have been prepared under the historic cost convention and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102) Second Edition effective 1 October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

Deafblind UK is a charitable company domiciled and registered in England. The principal accounting policies adopted in the preparation of the Financial Statement are set out below.

Deafblind UK meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note.

Basis of consolidation

The group financial statements consolidate the financial statements of the Charity and its subsidiaries for the year ended 31 March 2021. The statement of financial activities (SOFA) and the balance sheet consolidate the financial statements on a line by line basis where appropriate.

Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. There will

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be some negative impact of Covid, however the trustees have placed significant scrutiny in this area and are confident that the charity have the necessary resources to continue to deliver services to our members. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Fixed assets

All fixed assets are initially recorded at cost. Generally, expenditure over £1,000 of a capital nature is capitalised at cost as fixed assets within the relevant fund.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that as follows:

Freehold property 2% straight line Equipment 10% – 33% straight line Caravans 15 – 20% straight line

Given the long period over which the freehold buildings are depreciated they are also subject to an annual impairment review by the Trustees.

Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Charity estimates the recoverable amount of the cashgenerating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

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If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cashgenerating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the statement of financial activities, unless the relevant asset is carried in at a revalued amount, in which case

the reversal of the impairment loss is treated as a revaluation increase.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slowmoving items.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.

Pension costs

The Charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Charity. The annual contributions payable are charged to the statement of financial activities.

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Funds

If monies are given for a specific purpose, this income and related expenditure is treated as restricted. Monies are also held as designated funds as per Note 13. If the income is for general use, it is included as unrestricted and may be expended at the discretion of the Trustees in furtherance of the objects of the Charity.

Income

Income from donations and legacies are recognised in the appropriate fund as follows:

Legacies

Legacies are included in income when received, or if before receipt it becomes more likely than not that the Charity is entitled to the income, the legacy will be received, and the value can be determined with reasonable probability.

Donations

Income from other trading activities includes:

Commercial trading operations

Conference income, from hiring out the conference facilities at Deafblind UK’s headquarters and sales in the Charity Shop is recognised as income as soon as the event has taken place. Income and expenditure arising from the conference facilities and shop is included in the trading company, Deafblind UK Trading Limited.

Fees and charges and support work income, exclusive of VAT, are included in the period which they relate to.

Investment income includes:

Rental income

Deafblind UK receives rental income from renting accommodation at 18 Rainbow Court, Paston Ridings, Peterborough, PE4 7UP, to deafblind people. It is recognised as income in the period to which the income relates.

Donations under gift aid together with the associated income tax recovery are recognised as income when the donation is received.

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Income from charitable activities includes:

Fees and charges and support work

Fees and charges and support work income, exclusive of VAT, are included in the period which they relate to.

Other income

All other income, exclusive of VAT, is recorded in the period that it relates to.

Branch income

The results of the branches of the Charity are consolidated in the accounts.

Expenditure and irrecoverable VAT

All expenditure is accounted for on an accruals basis and is recognised when there is a legal or constructive obligation to pay. The costs of operating the Charity have been split between costs of raising funds, charitable expenditure and support costs.

Support costs include an apportionment to fundraising and direct charitable activities, and have been allocated based on staff numbers. Irrecoverable VAT is charged against the category of expenditure for which it was incurred.

Financial instruments

The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash

Cash and cash equivalents are basic financial instruments and include cash in hand.

Creditors

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and

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provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Taxation

The Charity is a registered Charity and is not liable to United Kingdom income tax or corporation tax on charitable activities.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Critical accounting estimates and areas of judgement

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

Critical accounting estimates and assumptions

The group make estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates and assumptions that are considered to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

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Hilory deofbliDdO Ir money

We were very grateful for the grants received from:

• The National Lottery Community Fund (England) towards our ‘Reaching Out to Deafblind People’ project to support deafblind people in London, Yorkshire, East Anglia, and the West Midlands

• The National Lottery Community Fund (Northern Ireland) towards our ‘Out of the Shadows’ project to support older deafblind people across Northern Ireland

• ECL – Essex Sensory Community Grant towards the provision of an Outreach Service for deafblind people across Essex

• The Evelyn Trust towards our outreach work in Cambridgeshire

Also received with thanks, donations from:

• Inman Charity

• Rhyl Flats Offshore Windfarm Community Fund

• The Steel Charitable Trust

• Royal Naval Benevolent Fund

• Eveson Charitable Trust

• Zochonis Charitable Trust

• M&C Trust

• ABF The Soldiers Charity

• John James Bristol Foundation

• James Tudor Foundation

We are very grateful to the National Emergency Trust and to the following who provided emergency funding to help our response to the Covid crisis:

The National Lottery Community Funds of England, Wales & Northern Ireland; the Community Foundations of Hampshire & the Isle of Wight, Leicestershire, Nottinghamshire, Essex, Lincolnshire, Tyne & Wear, South Yorkshire, Norfolk, Cambridgeshire, Suffolk, Sussex; Moondance Foundation; Barclay Foundation; Julia & Hans Rausing Trust; Thomas Pocklington Trust; February Foundation; Constance Travis Charitable Trust; Duchy of Lancaster Benevolent Fund; Hadrian Trust; Williams Family Foundation; Armed Forces Covenant Fund; Barking & Dagenham Renew; Dulwich Almshouse; London Funders Consortium; Thomas Farr Charity; Merck Sharp & Dohme (UK) Limited.

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f. Notes to the Accounts

Note 1. Income from grants and trusts 2020 – 21

Grants and donations including Specifc appeals Big Lottery Fund Furlough Scheme Income	Unrestricted funds £ 230,014 113,426	Restricted funds £ 632,093 216,973	Total funds 2021 £ 862,107 330,399	Total funds 2020 £ 481,924 381,092
	111,822		111,822	-
	455,262	849,066	1,304,328	863,016

Note 1. Income from grants and trusts 2019–20

Unrestricted funds £ Grants and donations including Specifc appeals 75,364 Big Lottery Fund 0 75,364 Note 2. Investment income Unrestricted funds £ Bank interest received 1,348 Note 3. Income from charitable activities Unrestricted funds £ Contracted services Fees, charges and support work 904,504 Income from property 244,350 1,148,854	Unrestricted funds £ 75,364 0	Restricted funds £ 406,560 381,092	Total funds 2020 £ 481,924 381,092	Total funds 2019 £ 420,945 279,286
	75,364	787,652	863,016	700,231
	Unrestricted funds £ 1,348	Restricted funds £	Total funds 2021 £ 1,348	Total funds 2020 £ 917
	Unrestricted funds £ 904,504 244,350	Restricted funds £ - -	Total funds 2021 £ 904,504 244,350	Total funds 2020 £ 1,046,608 192,441
	1,148,854		1,148,854	1,239,049

Note 2. Investment income

Note 3. Income from charitable activities

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Note 4. Income from subsidiary’s trading activities

Turnover Cost of sales Administrative expenses Other operating income Operating (loss)/Proft before Taxation Interest receivable Corporation tax Payable Retained proft Paid up shares capital Net liabilities/assets	About Me Care and Support Limited 2021 2020 £ £ - - -	About Me Care and Support Limited 2021 2020 £ £ - - -	Deafblind UK 2021 £ 61,491 4,584	Trading Limited 2020 £ 448,088 (72,167)
	- - - -	- - - -	66,075 (180,909) 42,114 (72,720) 12	375,921 (296,470) 79,451 463
	-	-	(72,708)	79,914
	-	8	2	2
	-	-	-	-

£nil (2020: £79,914) was gifted by the subsidiaries to the charity in the year.

The figures in the above table are inclusive of any intra-group transactions. In the statement of financial activity on page 26, intra-group transactions are netted against each other.

The following companies are wholly owned trading subsidiaries of the Charity

Deafblind UK Trading Limited (company number 05082057), a company established to provide conference facilities, provide transcription service and to sell merchandise on behalf of the charity.

About Me Care & Support Limited (company number 07945990), a company working with people who have a sensory impairment to provide personalised, community-inclusive care and support solutions. About Me Care & Support Limited re-merged with Deafblind UK on 1 April 2019, having separated the operations in July 2012.

Ultimately the activities are undertaken with a view to raising funds for Deafblind UK

Their results for the year, as extracted from the audited financial statements, are summarised on this page.

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Note 5. Fundraising costs

Fundraising and publicity costs including salaries and consultancy Postage and stationery

Unrestricted funds £ 286,879 7,035	Restricted funds £ - -	Total funds 2021 £ 286,879 7,035	Total funds 2020 £ 284,882 3,644
293,914	-	293,914	288,526

Note 6. Charitable activities

Direct charitable expenditure Care & Support Operations Governance Community services National Services Rainbow Court Information and Communications Technology	Direct charitable £ 836,973 12,264 308,884 205,913 111,808 122,504 1,598,346	Support costs £ 264,290 3,873 97,536 65,021 35,306 38,683 504,709	Total funds 2021 £ 1,101,263 16,137 406,420 270,934 147,114 161,187 2,103,055	Total funds 2020RESTATED £ 1,323,438 34,871 608,866 275,069 121,951 195,037 2,559,232

Support costs are allocated directly between activities based on total costs incurred. The movement on restricted funds in respect of charitable activities is detailed in Note 13.

Care & Support

This is the total of all contracted services Deafblind UK provide across the country.

Community Services

This is the total of all charitable services Deafblind UK provide in the community across the country.

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Charitable activities (continued)

Wages and salaries, including staf training Ofce running costs IT costs Travel and subsistence costs Insurances Deafblind Club costs Irrecoverable VAT Interpreting costs Depreciation and loss on disposal of tangible fxed assets Bad debt expenses Audit and accountancy	2021 2020 £ £ 1,752,570 1,978,652 258,767 258,493 88,407 35,330 26,515 112,168 10,300 13,725 872 11,040 - (3,894) - 1,069 (25,198) 129,866 (19,478) 7,903 10,300 14,880
	2,103,055 2,559,232

Charitable expenditure comprises the following main elements:

National Services

This is the total of all charitable services centrally provided by Deafblind UK to support members across the country.

Rainbow Court

This is an independent living facility in Peterborough that supports people with deafblindness to live in their own accommodation.

Information and Communications Technology

To provide specialist computer equipment and training for people with deafblindness, either at Deafblind UK or in their home.

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Note 7. Staff costs

The aggregate payroll costs were:

Wages and salaries Social security costs Pension costs Termination payments Employees who earned more than £60,000 during the year: £60,001 - £80,000 £80,001 - £90,000	2021 £ 1,841,508 136,948 43,747 22,935 2,045,138 2021	2020 £ 2,068,817 158,262 49,293 40,681
		2,317,053
		2020
	1 1	1 1

Particulars of employees

The average number of staff employed by the group during the financial year amounted to:

mounted to:
	2021	2020
	Number	Number
Finance, administrative and support	14	24
Care and support	62	64
Fundraising	12	11
Community services	21	25
	109	124

Pension contributions in relation to this employee amounted to £4,896 (2020: £4,896) in the year.

£nil has been reimbursed to Trustees during the year (2020: £1,030). This related to travel costs, guides and interpreting costs. No Trustees received reimbursements in the year (2020: 3).

The key management personnel of the parent charity, Deafblind UK, are also responsible for the management of the wholly owned subsidiaries Deafblind UK Trading Limited and About Me Care & Support Limited. They comprise of the Trustees (who are not remunerated in their role), and members of the executive team. The total employee benefits for both of these were £224,833 (2020: £224,833).

Included in termination payments is a noncontractual payment of £nil (2020: £16,868).

Trustees did not receive remuneration in 2021 or 2020.

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Note 8. Net income/(expenditure)

Net income/(expenditure) is stated after charging/crediting

	2021	2020
	£	£
Depreciation of tangible fxed asset – owned	125,685	134,841
Proft on disposal	(112,121)	-
Auditors’ remuneration:
■statutory audit of parent and consolidated accounts	11,400	11,220
■statutory audit of subsidiaries	2,650	2,600
■other services	2,490	2,755

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Note 9. Tangible fixed assets – Group

Cost At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year Eliminated on disposal At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	Freehold Property As restated 3,875,109 22,084 (3,223,698)		Equipment 1,011,814 33,260 (751,834)		Fixtures & fttings - - -		Total 4,886,923 55,344 (3,975,532)
	673,495		293,240		-		966,735
	1,086,593 28,422 (832,013)		784,901 97,264 (695,070)		- - -		1,871,494 125,686 (1,527,083)
	283,002		187,095		-		470,097
	390,493		106,145		-		496,638
	2,788,516		226,913		-		3,015,429

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Tangible fixed assets (continued) – Charity

Cost At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year Eliminated on disposal At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	Freehold Property As restated £ 3,875,109 22,084 (3,223,698)		Equipment £ 850,865 31,168 (618,761)		Fixtures & fttings £ - - -		Total £ 4,725,974 53,252 (3,842,459)
	673,495		263,272		-		936,767
	1,086,593 28,422 (832,013)		667,852 72,929 (571,402)		- - -		1,754,445 101,351 (1,403,415)
	283,002		169,379		-		452,381
	390,493		93,893		-		484,386
	2,788,516		183,013		-		2,971,529

All fixed assets are held for charitable purposes.

Freehold property includes land of £801,250 (2020: £801,250) which is not depreciated.

The annual impairment review by the Trustees has assessed the value of the freehold buildings and the Trustees are confident that the asset value in the balance sheet is representative of a fair value in the marketplace.

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Note 10. Investments

Charity Costs Fixed asset investments at cost 1. Debtors Group Trade debtors Other debtors Prepayments Charity Trade debtors Amounts owed by group undertakings Prepayments Other debtors	2021 £ 10		2020 £ 10
	2021 £ 62,915 287,398 2,790		2020 £ 172,242 275,936 13,981
	353,103		462,159
	2021 £ 63,754 131,423 2,790 287,398		2020 £ 137,251 25,885 13,981 275,936
	485,365		453,053

11. Debtors

Investments relate to the shares held in Deafblind UK Trading Limited and About Me Care and Support Limited, all 100% owned subsidiaries, and all companies incorporated in the United Kingdom. For further information on the activities of the subsidiaries, see note 4.

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Note 12. Creditors

Amounts falling due within one year

Group Trade creditors Taxation and social security Other creditors Accruals Charity Trade creditors Taxation and social security Other creditors Accruals	2021 £ 83,056 24,326 60,382 305,276	2020 £ 38,291 47,728 31,734 247,639
	473,040	365,392
	2021 £ 83,055 25,727 60,382 283,163	2020 £ 27,080 34,339 31,597 206,990
	452,327	300,006

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Note 13. Restricted Funds 2020-2021

Group and Charity The National Lottery Community Fund – Companions (England) Digital Inclusion Rainbow Court Paths and Handrails Merseyside & Manchester West Midlands Outreach East Anglia Outreach The National Lottery Community Fund - Out of the Shadows (Northern Ireland) North Wales Project Essex Outreach Other Appeals Caravan & Respite Breaks National Services Bristol Outreach Yorkshire Outreach Helpline (Service) Covid 19 - Emergency Funding Wellbeing & Emotional Support Veterans Appeal Clinicians Project Volunteer Programme Cambridgeshire Outreach Appeal E-Learning Appeal Mental Health Appeal Braille Printer Restricted funds	Movement in resources Balance 31-Mar-20 Income £ £ 41,375 80,273 19,136 9,284 17,765 9,877 10,000 5,358 8,000 3,097 10,000 2,916 136,700 1,430 37,500 12,050 9,000 7,031 5,000 2,000 118,412 106,853 85,544 59,600 49,387 39,637 25,000 18,200 15,000 4,595 100,954 849,066	Movement in resources Balance 31-Mar-20 Income £ £ 41,375 80,273 19,136 9,284 17,765 9,877 10,000 5,358 8,000 3,097 10,000 2,916 136,700 1,430 37,500 12,050 9,000 7,031 5,000 2,000 118,412 106,853 85,544 59,600 49,387 39,637 25,000 18,200 15,000 4,595 100,954 849,066	Expenditure £ 121,648 28,420 19,877 13,358 13,097 129,281 1,430 37,500 12,050 9,000 7,031 5,000 2,000 79,981 106,853 36,550 40,125 39,582 32,659 16,943 5,630 - 758,015		Transfer £ 17,765 4,595 22,360		Balance 31-Mar-21 £ - - - - - - 10,335 - - - - - - - 38,431 - 48,994 19,475 9,805 6,978 8,057 12,570 15,000 - 169,645

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Restricted Funds 2019–2020

Group and Charity Caravan & Respite Breaks Rainbow Court Paths and Handrails The National Lottery CF - Companions (England) Digital Inclusion Essex Outreach London Outreach The National Lottery CF - Reaching Out Wales North Wales Project The National Lottery CF - Out of the Shadows (N Ireland) Yorkshire Outreach Bristol Outreach Merseyside & Manchester Outreach East Anglia Outreach West Midlands Outreach Adaptive Equipment for DBP Awareness Kits National Services Restricted funds	Movement in resources Balance 31 March 2019 Income £ £ 8,000 15,304 28,525 38,554 157,381 19,562 74,296 37,500 8,500 2,969 171,201 17,646 78,765 14,000 10,000 43,800 45,000 22,100 2,000 - 2,561 - - 112,193 80,950 828,907	Expenditure £ 8,000 - 154,560 74,722 37,500 8,500 174,170 16,216 75,848 14,000 10,000 33,923 41,903 16,742 2,000 2,561 112,193 782,838	Transfer £ 26,064 26,064	Balance at 31 March 2020 £ - 17,765 41,375 19,136 0 - - 1,430 2,916 - - 9,877 3,097 5,358 (0) - - 100,954

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Restricted Funds (continued)

The National Lottery Community Fund – Companions (England)

Big Lottery Fund Grant (under the Reaching Communities fund) for supporting deafblind people in various regions of England.

The National Lottery Community Fund – Reaching Out (Wales)

Big Lottery Fund Grant (under the Reaching Communities fund) for supporting deafblind people in various regions of Wales.

The National Lottery Community Fund – Out of the Shadows (N. Ireland)

Big Lottery Fund Grant (under the Reaching Communities fund) for supporting deafblind people across Northern Ireland.

Caravan and Respite Breaks

Facilities subsidised caravan respite breaks for deafblind people, and their families and carers.

National Services

Supporting information, advice, caseworker and volunteer services for deafblind members, carers and others working with deafblind people.

Digital Inclusion

Raising awareness of digital inclusion for deafblind people with the opportunity to try out accessibility features of technology, supported by volunteers

Various Outreach funds

Funds to support staff and volunteers working with deafblind people in their homes and communities and the provision of Peer Support groups in North Wales, London, Yorkshire, Essex, Manchester & Merseyside, East Anglia, West Midlands & Bristol and its surrounding area.

Rainbow Court Paths & Handrails

Phase Two of our replacement and extension of the footpaths and handrails at Rainbow Court, Paston, Peterborough.

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Designated Funds

In addition to the restricted funds above, Trustees have also designated the following funds from unrestricted reserves:

ollowing funds from unrestricted reserves:
Renovations at Rainbow Court Purchase of new holiday accommodation Purchase of Minibus Unrestricted income project (shops) Provision of Supported Living IT Support Programme Research Programme Strategic Reserve (Endowment Fund) Total Designated Funds	£ 150,000 £ 150,000 £ 30,000 £ 90,000 £ 250,000 £ 100,000 £ 150,000 £ 2,550,000
	£ 3,470,000

Analysis of Group Reserves:

Analysis of Group Reserves:
Restricted Reserves Unrestricted Designated Reserves Unrestricted Fixed Assets Unrestricted Free Reserves Total Reserves	£ 169,646 £ 3,470,000 £ 496,638 £ 708,513
	£ 4,844,797

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Note 14. Unrestricted funds 2020–21

Group General Other fxed assets Unrestricted funds Charity General Other fxed assets Unrestricted funds	Balance at 31-Mar-20 £ 1,227,704 2,664,108	Movement in resources Income Expenditure Transfer £ £ £ 2,556,519 (1,669,854) 2,064,144 (125,685) (2,041,784)	Movement in resources Income Expenditure Transfer £ £ £ 2,556,519 (1,669,854) 2,064,144 (125,685) (2,041,784)	Movement in resources Income Expenditure Transfer £ £ £ 2,556,519 (1,669,854) 2,064,144 (125,685) (2,041,784)	Balance at 31-Mar-21 £ 4,178,513 496,639
	3,891,812	2,556,519	(1,795,539)	22,360	4,675,152
		Movement in resources
	Balance at 31-Mar-20 £ 1,138,218 2,670,991	Income £ 2,473,902	Expenditure £ (1,448,445) (101,350)	Transfer £ 2,107,614 (2,085,254)	Balance at 31-Mar-21 £ 4,271,289 484,387
	3,809,209	2,473,902	(1,549,795)	22,360	4,755,676

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Unrestricted funds 2019–20

Group

Group General Other fxed assets Unrestricted funds Charity General Other fxed assets Unrestricted funds	Balance at 31-Mar-19 £ 1,074,795 2,798,949		Movement in resources Income Expenditure Transfer £ £ £ 2,367,524 (2,240,679) 26,064 (160,119)	Movement in resources Income Expenditure Transfer £ £ £ 2,367,524 (2,240,679) 26,064 (160,119)	Movement in resources Income Expenditure Transfer £ £ £ 2,367,524 (2,240,679) 26,064 (160,119)	Balance at 31-Mar-20 £ 1,227,704 2,638,830
	3,873,744		2,367,524 (2,400,798) 26,064			3,891,812
	Balance at 31-Mar-19 £ 1,074,632 2,794,857		Movement in resources Income Expenditure Transfer £ £ £ 1,954,973 (1,917,373) 26,064 (123,866)			Balance at 31-Mar-20 £ 1,138,296 2,670,991
	3,869,489		1,954,973	(2,041,239)	26,064	3,809,287

Other fixed assets

The other fixed asset fund represents tangible fixed assets held for the charity’s use excluding the National Centre for Deafblindness. The expenditure allocated on this fund represents the depreciation charged on these assets in the year, and the transfer represents the net movement relating to additions and disposals in the year.

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Note 15. Analysis of net assets 2020–21

Group Restricted funds Unrestricted funds Charity Restricted Unrestricted funds	Tangible fxed assets £ - 452,381 452,381	Tangible fxed assets £ - 496,638	Net current assets £ 169,646 4,178,513	Total £ 169,645 4,675,152
		496,638	4,348,159	4,844,797
		Investments £ - 10	Net current assets £ 169,646 4,303,284	Total £ 169,645 4,755,676
		10	4,472,930	4,925,321

Analysis of net assets 2019–20

Group Restricted funds Unrestricted funds Charity Restricted Unrestricted funds	Tangible fxed assets £ - 2,972,405 2,972,405	Tangible fxed assets £ - 3,015,429	Net current assets £ 100,954 876,383	Total £ 100,954 3,891,812
		3,015,429	977,337	3,992,766
		Investments	Net current assets	Total
		£ - 10	£ 100,955 836,794	£ 100,954 3,809,210
		10	937,749	3,910,164

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Note 16. Financial instruments

The carrying amount of the charitable company’s financial instruments as at 31 March 2021 was:

Financial assets Equity instruments measured at fair value Debt instruments measured at Amortised cost Financial liabilities Measured at amortised cost	Group 2021 £ - 350,313 167,764		Charity 2021 £ 10 351,152		Group 2020 £ - 448,178		Charity 2020 £ 10 413,187
			169,164		117,753		93,016

Note 17. Related party transaction

At the year end the charity was owed £122,188 (2020: £47,950) by Deafblind UK Trading Limited, a wholly owned subsidiary of Deafblind UK. During the year the charity recharged expenses of £64,673 (2020: £187,096) and rent of £21,000 (2020: £36,000) to Deafblind UK Trading Limited; and was charged expenses of £nil (2020: £308,838) from the company.

Note 18. Company limited by guarantee

The company does not have share capital and is limited by guarantee. In the event of the company being wound up, the maximum amount which each member is liable to contribute is £10.

Note 19. Pensions

The group contributes to a defined contribution scheme for its employees.

The charge for the year is £43,747 (2020: £49,293) and at the balance sheet date there were £3,567 (2020: £4,094) of outstanding contributions which were included within the creditors.

Note 20. Contingent liability

There are no contingent liabilities as at 31 March 2021. (2020: £0).

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Note 21. Comparative consolidated statement of financial activities by fund

Income from Donations and legacies Legacies Grants and trusts Other donations Other trading activities Commercial trading operations Fundraising income Non-charitable trading Charitable activities Contracted services Income from property Investment income Total income Expenditure Fundraising costs Commercial trading operations Charitable activities Total expenditure Net income Transfers between funds Total funds bought forward Total funds carried forward	Unrestricted Funds £ 378,341 34,109 203,286		Restricted funds £ 828,907		Total funds 2019 £ 378,341 863,016 203,286
	615,736 448,088 47,324 16,410		828,907		1,444,643 448,088 47,324 16,410
	511,822 1,046,608 192,441		-		511,822 1,046,608 192,441
	1,239,049		-		1,239,049
	917				917
	2,367,524		828,907		3,196,431
	288,526 310,602 1,776,394		782,838		288,526 310,602 2,559,232
	2,375,522		782,838		3,158,360
	(7,998) 26,064 3,873,746		46,069 (26,064) 80,949		38,071 - 3,954,695
	3,891,812		100,954		3,992,766

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Note 22. Comparative analysis of charitable activities (Note 6) – RESTATED

Direct charitable expenditure Care & Support Governance Community Services National Services Rainbow Court Information and Communications Technology	Direct charitable £ 932,833 24,579 429,163 193,884 85,958 137,473 1,803,890		Support costs £ 390,605 10,292 179,703 81,185 35,993 57,564 755,342	Total funds 2020 £ 1,323,438 34,871 608,866 275,069 121,951 195,037 - 2,559,232

Wages and salaries, including staf training Ofce running costs IT costs Travel and subsistence costs Insurances Deafblind Club costs Irrecoverable VAT Interpreting costs Depreciation and loss on disposal of tangible fxed assets Bad debt expenses Audit and accountancy			1,978,652 258,493 35,330 112,168 13,725 11,040 (3,894) 1,069 129,866 7,903 14,880 2,559,232

Policy Information and advice is now split between Community Services and National Services

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Thank you

The last 12–18 months presented huge and unforeseen challenges as we wrestled with Covid-19 and its impact on our beneficiaries and our services. We believe that we rose to these challenges creatively and with passion. Our overriding motivation was that we were determined not to let down those who depend on us – and, thanks to the pandemic, who were more dependent on our services than ever. We could not have managed without the support of a great many people, and the final thing that we want to say in this Annual Report is thanks – to everyone who supported us through their donations, to everyone who helped us with their fundraising efforts, to everyone who volunteered their time, and to our staff. Collectively, who made a difference.

It is a privilege to help those who need our services. It is an inspiration to receive the support that we do.

Thank you.

0800 132320 [e-mail] deafblind.org.uk

Conquering the unknown Deafblind UK annual report 2021 Consolidated statement of financial activities (Incorporating a consolidated income and expenditure account) for the year ended 31 March 2021.

Company Registration No. 02426281 (England and Wales) Charity No. 802976.

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