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2014

REPORT AND
ACCOUNTS

Report and accounts 2014

Contents
Patron
Her Majesty The Queen
President
His Royal Highness The Prince of Wales
KG KT GCB OM
Deputy presidents
Her Royal Highness Princess Alexandra,
the Hon Lady Ogilvy LG GCVO
The Countess Mountbatten of Burma CBE
CD JP DL
Honorary vice-presidents
Lord Barnard TD
The Rt Hon Baroness Chalker of Wallasey
Sylvia, Countess of Limerick CBE
Professor John McClure OBE
Mrs Elspeth Thomas CBE DL
Sir Nicholas Young
Vice-presidents
Mr Anthony Andrews
Ms Angela Rippon OBE
Mrs Maria Shammas MBE
Board of trustees
Mr David Bernstein CBE, chair
Mr John Dauth AO LVO, vice-chair
Mrs Hilary Douglas CB, vice-chair
Mr Paul Taylor, vice-chair
Mr David Howell, treasurer
Mrs Fionnuala Cook DL OBE
Mr Robert Dewar CMG
Ms Amy Foan
Mr Michael Herriot MBE
Mrs Uzo Iwobi OBE
Mr Steve John
Dr Lise Llewellyn
Mr Gordon Low
Mrs Gill Moffat
Mrs Amanda Nicholson
Dr Daniel Sedgewick
Mr Keith Shipman

Senior management team


Michael Adamson, chief executive
(from 1 November 2014)
Sir Nicholas Young, chief executive
(until 31 August 2014)
Roger Smith OBE, FCIPD, director of
people and learning
Mark Astarita, director of fundraising
Philip Talbot, director of communications
Rohan Hewavisenti ACA, director of
finance and business development
Norman McKinley, director of UK operations
David Peppiatt, director of international
operations

Chairs and chief executives statements

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Trustees report

External auditors
Deloitte LLP
2 New Street Square
London EC4A 3BZ
Bankers
National Westminster Bank plc
City of London Office
PO Box 12258
1 Princes Street
London EC2R 8PA
External legal advisers
Withers
Old Bailey
London EC4M 7EG

Our aims

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2014: Achievements and performance

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Our work in the United Kingdom

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Our work overseas

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Introducing the next five years

/26

Our plans for 2015

/27

Review of fundraising and finances

/29

Risks and governance

/33

Accounts

Investment managers
BlackRock
12 Throgmorton Avenue
London EC2N 2DL

Independent auditors report to the trustees of the British Red Cross

/40

Accounts for the year ended 31 December 2014

/42

Thank you

/66

Board sub-committees include


Finance, risk and audit committee
Remuneration committee
Nominations committee

Cover photo Katherine Mueller/IFRC.

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Report and accounts 2014

Introduction
Chairs statement
I have now completed my first year as
chair of the board of trustees. It has
proved to be an exciting and interesting
introduction to the British Red Cross
and I am truly privileged to be part of
this great organisation.
2014 has been a year of real success
for the charity in spite of a difficult
economic background. We responded
to 14 international emergencies which
ranged from floods in the Balkans and
Bangladesh to the Ebola outbreak in
West Africa, drought in Kenya and
various conflicts. The contribution
of our volunteers and staff was, as
always, outstanding.
Our impartiality, neutrality and
independence have allowed us to deliver
life-saving assistance to people in these
countries and many more. Partnership
is at the heart of all we do overseas, and
we have worked with National Societies
across the International Red Cross and
Red Crescent Movement, supporting
each other to make a difference to the
lives of millions.
In the UK, our staff and volunteers have
worked together to continue tackling
crises in their local areas. This involves
us in a wide range of support from
helping victims of house fires and driving
patients to medical appointments to
giving first aid at major events and

Chief executives statement


helping make life easier for busy A&E
departments and ambulance trusts.
2014 has also been a year of significant
changes for the Red Cross. After 13
years at the helm, Sir Nicholas Young
stepped down as chief executive in
August. Nicks tireless work for the
organisation has been an inspiration to
us all. Id like to take this opportunity to
thank Nick for all he has done and I wish
him and his family the very best.
I am delighted to welcome Mike
Adamson to the role of chief executive.
Mike has worked for the organisation
in various roles over the years and
brings great experience to the position
alongside a broad range of skills. I look
forward to working with him over the
coming years.
This is an important time for the charity
as we embark on a new strategy,
Refusing to Ignore People in Crisis. We
have an exciting future both at home
and in a wider world where the skills and
passion of the Red Cross Movement are
needed more than ever.

David Bernstein CBE

In 2014, we completed our strategy Saving


Lives, Changing Lives. Throughout the
strategy we grew our services and income,
streamlined our support functions and
developed our talented people.
There were many highlights for me in 2014.
We launched our new campaign Every
Crisis is Personal in January, raising
awareness about the services we offer.
This accompanied our research showing
that over a third of people in the UK feel
they do not have support networks to turn
to during times of personal crisis.
We worked in partnership with Fareshare,
the Trussell Trust and Tesco in July, with
450 staff, volunteers and supporters
helping to collect food donations for
families facing food poverty.
Throughout the year we helped over
120 people trafficked into the UK. Our
teams supported two high-profile incidents
in Essex and Somerset, providing
emergency and emotional support to
victims at rest centres.
I was delighted that our discussions led to
a commitment from the Home Office to
re-draft and simplify the application form
for refugee family reunion to make it easier
for refugees in the UK to be reunited with
their families.
We grew our support at home services
by 19 per cent and ambulance support
by 48 per cent, leading to an invitation by
the Department of Health and the Cabinet
Office to support the NHS through a very
busy winter.
We launched five new emergency appeals,
running seven in total. We responded to
five emergencies overseas simultaneously

Photos Page 2 Jan Kruger/The FA. Page 3 Matthew Percival/BRC.

in hugely challenging contexts: conflicts in


Gaza, Syria, Iraq and South Sudan and the
Ebola epidemic in West Africa.
Meanwhile, in the Philippines, we used
donations from our appeal in 2013 to start
building the first of 2,500 new shelters for
those affected by Typhoon Haiyan, using
technology and materials that should be
resilient to storms in the future.
To help explain why this kind of resilience
work matters, we launched Disaster Island,
an online interactive game developed by
14-year-old schoolboy Morgan Spence
from Scotland. Morgan used Lego and
animation to tell the story behind our
international resilience programmes.
My final highlight was winning PwCs
building public trust award for excellence
in reporting in charities for our 2013
annual report.
Now we are looking ahead to a new
strategy in a climate that offers many
challenges: public sector funding cuts,
rapid advances in technology, a potential
change of government and an aging
population in which one in three people
born today will live to be 100. Our response
to these challenges (and many more) is
Refusing to Ignore People in Crisis.
In this changing world, we will adapt our
ways of working and structures where
necessary, but our commitment to people
in crisis, together with our values and
principles, will endure.

Mike Adamson

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Report and accounts 2014

Our aims

Our vision is of a world where everyone


gets the help they need in a crisis.
Our mission is to mobilise the power
of humanity so that individuals and
communities can prepare for, deal with and
recover from crises.
Around 24,000 volunteers and more than
3,900 staff work together to fulfil our vision
and mission both here and overseas.

We help millions of people cope with


all kinds of crises from disasters and
conicts to individual injuries and other
personal challenges. Our work includes
support in emergencies, refugee support,
independent living services and rst
aid and humanitarian education. The
combined effect is to help both individuals
and communities prepare for, cope with
and recover from a range of crises.

We helped more than


74,500 people to live
independently in their
own homes during 2014.

We operate both in our own right and as


part of the International Red Cross and
Red Crescent Movement, the worlds
largest humanitarian network, which has
more than 17 million volunteers across
189 countries.
Our corporate strategy, Saving Lives,
Changing Lives, set the framework for our
core objectives between 2010 and 2014.

xxxxx Caption here?? xxx

Photo Page 4 Simon Rawls.

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Report and accounts 2014


Achievements and performance

2014: Achievements
and performance
Find out about the main areas of our work
in the UK and overseas during 2014.

Firewood is unloaded
from the British Red Cross
Unimog 4x4 all-terrain
vehicle, which is usually
used in international
disasters but was used to
deliver fuel to villagers in
Muchelney, Somerset in
early 2014.
Photo Pages 6-7 Chuck Haupt /BRC.

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Report and accounts 2014


Achievements and performance

Our work in the


United Kingdom
Support in emergencies
More than 700 volunteers helped
over 12,500 people during 2014. We
supported people through everything
from house fires, floods, peopletrafficking incidents and a coach crash to
an evacuation due to a World War Two
explosive device.
For parts of the UK, the year began
with some of the worst weather seen
for hundreds of years. High winds,
tidal surges, rain and flooding affected
communities in many towns and villages.
We helped 4,100 people by providing
essential supplies, welfare checks
and emotional support, helping at
rest centres and working with utility
companies to check on households
left without power or water. We used
50,000 from our disaster fund to
support this work.
Someones there for you
John and Vera Budge were just two of
the people affected by the floods. They
live in Thorney Halt, a village on the
Somerset Levels that was completely
cut off by floodwater for two months.
John has motor neurone disease
and uses a wheelchair, and Vera was
concerned about leaving him alone for
long periods.
Vera said: Ive been getting quite
stressed because I have to make all
these plans just to get some basic
shopping. Then, when I do go out, I
never know how long it will take me to
get back. I know Johns fine, but I do
worry about something happening while
Im away.

Thanks to our Unimog all-terrain truck


and 44 vehicles, our volunteers could
reach cut-off villages with all kinds of
supplies and carry out welfare checks.
Volunteer Cheryl Murray was soon a
regular feature at the Budge household.
Vera said: Cheryl is such a lovely
person. Its really nice to know
someones there for you.
Last time Cheryl visited, I was a bit
stressed and she must have picked up
on it. Although she didnt say anything,
she offered to organise my shopping
delivery it was bliss not to have the
worry of it.

of shows, Silverstone and the Tough


Mudder events: seven weekends of
gruelling military-style obstacle courses
completed by an average of 20,000 very
muddy participants.
They did a great job
In October, a young athlete collapsed at
the end of the Great Scottish Run.
It was only as he crossed the finish line
that Sean Deans realised all might not be
well. The 29-year-old suffered a cardiac
arrest but luckily, two of our first aid
volunteers were standing close by with a
defibrillator kit.

Looking back, Vera said: When they


declared a major incident and the Red
Cross suddenly appeared, I wasnt quite
sure how they were going to fit in but
theyve been really good for the area.
Help for victims of people-trafficking
We helped victims of human trafficking
throughout the year and welcomed
our first ever staff team focussed on
people-trafficking. In August, our work
in this area made the headlines as 14
staff and volunteers helped 35 Afghan
Sikh immigrants, including 13 children,
found in a container in Tilbury Docks,
Essex. Just three days later, volunteers
in Somerset were called to offer roundthe-clock support to 15 people found on
board a lorry.

Sean remembers the moment he


regained consciousness: I felt as if I had
been kicked and came to with a real
jolt. I cant thank these Red Cross guys
enough. Their quick thinking and their
training saved my life. I wouldnt be here
today if it wasnt for them. They did a
great job.

In total, event first aiders covered around


6,000 events throughout the year.
Supporting the emergency services
Whilst our volunteers were the stars
of the show, best supporting role in
emergency response went to the many
vehicles they relied upon. Volunteers
sped to more than 2,400 house fires
to offer families support in the comfort
of our specially adapted fire and
emergency service vehicles.
2014 saw the launch of our new stateof-the-art ambulances, with all the
latest equipment and features, as we
increased our ambulance support to
NHS ambulance services and health
care commissioners. We won significant
contracts across most parts of the
UK and helped approximately 70,000
people. We are now going to develop
our ambulance support offer.

In Glasgow, 128 volunteers covered 108


events as the city welcomed thousands
of visitors for the Commonwealth Games.
They helped 800 spectators from around
the world, saving the life of a seven-yearold boy whose heart stopped.

Saving lives: event first aid


Red Cross first aid volunteers were put
to the test at many high-profile events,
including the Royal Horticultural series

Photo Page 9 Lisa Naylor.

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Report and accounts 2014


Achievements and performance

[The Red Cross] fought


hard until one day they
phoned to say that the
Home Office had given me three
years to live here. I didnt think it
was going to happen Every
day I am here, I am really safe,
I am really happy.
This refugee from Zimbabwe,
who did not wish to give her
name, had waited ten years to
get refugee status.

An extract from Over Under Sideways Down

Refugee support
You can find our refugee services in 48
towns and cities across the UK. Many
refugees and asylum seekers experience
serious problems with the UK asylum
system, whatever their status. In 2014
we surpassed our target of helping
refugees and asylum seekers in the UK
by 71 per cent, as more than 19,000
people turned to us for help and support.
Our services provide a lifeline to many
people in desperate situations who are
homeless, unemployed and hungry
with no access to health care and daily
essentials. We offer everything from food
parcels, clothing, toiletries and nappies
to emotional and family reunion support,
and advice on living in the UK. We also
help people access English classes and
legal and financial support.
Throughout the year we helped refugees
and asylum seekers from countries
including Eritrea, Syria, Iran, Afghanistan,
Nigeria, Pakistan, Iraq and Zimbabwe.
Our work to improve the family reunion
process continued as we ran pilot

projects sponsored by Comic Relief.


The findings will be published in 2015.

change asylum support to help people


throughout the entire asylum process.

Speaking up for refugees and


asylum seekers
To support our calls to end destitution
and build a fairer system for refugees
and asylum seekers, we published two
reports. The move-on period: an ordeal
for new refugees seeks to understand
why many new refugees are at particular
risk of destitution in their first 28 days.
Well be using the reports findings to
work with the government to improve
the system.

We engaged with the Smith Commission


on policy changes in Scotland which
could alleviate the destitution of asylum
seekers and address a number of
humanitarian concerns. We were very
pleased to see the Commissions
recommendations that the Scottish
and UK governments work together to
explore the possibility of different powers
being in place in Scotland for asylum
seekers. These would include access
to accommodation, financial support
and advice, and the ability to lodge an
asylum claim to the Home Office from
within Scotland.

Our second report focussed on the


Azure payment card, which is given to
asylum seekers who are destitute and
cannot return home for reasons beyond
their control. They can spend the card
in certain shops on essentials such
as food and toiletries. We interviewed
asylum seekers and the organisations
that support them, investigating the true
human cost of this cashless system. Our
findings mean we are now calling on
the government to abolish the card and
Photos Page 10 Joel Chant/UNP. Page 11 Karrie Fransman, JohnnyScriv/iStock.

A very tall story


In October, a destitute asylum seeker approached
our refugee support team in Belfast with an unusual
cry for help he desperately needed some shoes.
His limited budget of 35 per week didnt stretch to
new footwear. While a Red Cross charity shop would
happily have donated a pair of shoes, it turns out size
14s are very hard to find.
After we posted an appeal on Twitter, Richard Osman
presenter of the BBC quiz Pointless offered to
help. At six foot seven inches tall, the gargantuan star
also wears size 14 shoes. He swiftly sent two pairs of
shoes and a note: From one big guy to another.

In June we celebrated the annual


Refugee Week with the launch of the
comic Over Under Sideways Down by
graphic novelist Karrie Fransman. Karrie
drew the uplifting true story of Ebrahim,
a young Kurdish-Iranian refugee helped
by our refugee services. The comic won
a Broken Frontier award after a public
vote in December.

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Report and accounts 2014


Achievements and performance

Teens zap epilepsy


Our research shows young people do want to learn
about first aid, but often find traditional methods to
be a bit stuffy and formal. Thats why we teamed up
with YouTube gaming sensation Ali A in June, whose
videos have been watched 700 million times by his
3.8 million subscribers. Ali worked with us on a short
film designed to show young people how to help
someone having an epileptic seizure.
More than 355,500 people have watched the
video which features a giant spaceship, mutant
aliens and some vital first aid advice.

First aid and humanitarian


education
If a friend collapsed, would you know
what to do? We taught more than
370,000 people the answer, reaching
our target for the number of people
trained in life-saving first aid skills. We
also met our humanitarian education
commitments, teaching more than
88,800 young people about crises,
vulnerability and stigma.
We ran public and workplace first aid
courses as well as drop-in sessions at
refugee centres and in city centres.
I saved my sons life
Parent-to-be Ben Raybould dropped in
on our baby first aid seminar at his local
Mothercare store.
He said: Using their baby manikins,
they demonstrated basic life-saving
skills including resuscitation. We really
enjoyed ourselves, but then headed
home and thought nothing more of it.
Months later, our precious Eddie Jean
Raybould was born but it quickly

became clear all was not well. He had


a rare congenital heart defect.
One night Eddie awoke with a rare
loud cry and we knew something was
seriously wrong. Within two minutes,
he stopped breathing and turned blue.
Then it happened: my instinct and
training just took over. While my partner
called for an ambulance, I started
resuscitating Eddie, literally remembering
word by word the instructions from the
Red Cross. To my utter relief, it worked.
Eddie started breathing again and was
rushed to hospital.
Later, we found out my son had
suffered an angina attack, and were told
that without our intervention he would
no longer be with us.
Im so grateful to the Red Cross for the
role they played in helping me save my
sons life.
Throughout 2014 we continued to
provide free first aid tips and advice

through our website and mobile apps.


More than one million people have
now downloaded our adult and baby
and child first aid apps, which provide
advice on what to do in an emergency.
This is great news because research in
September showed that almost threequarters of British people would be
much more likely to step up and help in
an emergency if they had a first aid app
on their phone.

HALLOWEEN HAZARDS:
FIRST AID GUIDE

If you cut
yourself, put
pressure on
the wound with
whatever is
available.

To treat a
burn, cool it
under cold
running water
for at least ten
minutes.

If someone
is choking, hit
them firmly
on the back
between the
shoulder
blades.

We offer topical first aid advice every Friday on our social media channels
Photos Page 12 Callum Bennetts/Maverick Photo Agency. Page 13 Knape/iStock.

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Report and accounts 2014


Achievements and performance

Independent living
We help people to live independently
in their own homes. Our services can
reduce admissions to hospitals and care
homes by providing support at home,
transport support and mobility aids. We
met our targets for independent living in
2014, helping more than 74,500 people
through our support at home services,
working in partnership with other
agencies to give people in crisis the help
they need.
Our volunteers did everything from
collecting shopping and taking people
to medical appointments to giving
people the confidence to lead their own
lives again after a long stay in hospital.
We trialled a new top three goals
approach, in which the people we help
determine what support and care they
receive to improve their lives.

Top quality care

We also performed more than 58,000


hand, arm and shoulder massages to
people dealing with stressful situations
including carers, and patients waiting for
treatment or recovering from an illness.

We want to ensure that the people we


support receive the highest quality of
care from us. In 2014 we continued to
develop and improve how we measure our
performance against quality indicators and
introduced a number of ways in which we
can demonstrate the quality of our services
and the positive difference we make to
peoples lives. Our first quality account will
be published in 2015.

We influenced and welcomed the


Care Act 2014 as an important step in
securing peoples right to preventative
support, i.e. simple practical and
emotional help. We want everyone to
have access to preventative services like
the ones we provide across the UK.
Support at home
Among those we helped after a stay in
hospital was Iliff Simey, a 75-year-old
woodsman who lives in rural Cilcain in
North Wales. His home lies at the end of
a long path, and hes miles away from
the nearest shops. So when he had
a mini-stroke and doctors temporarily

took away his driving licence, it left


him stranded.
Iliff recalled: Having the stroke made me
realise how dependent I was on driving
to bring in food and supplies. And while
I have many good friends, there is a limit
to how much you can put on them.
When his local hospital mentioned our
support at home service he got straight
in touch.
Iliff said: I dont know how Id have
managed without the Red Cross. You
think of them working with refugees and
in places stricken with famine, not a little
valley in North Wales. But I really would
have struggled without them.
We also embarked on a new five-year
partnership with Land Rover in the UK,
for which we are most grateful, allowing
us to reach more than 13,000 residents
in rural areas through our support at
home services, as well as helping us to
tackle tough terrain in their 4x4 vehicles.

I dont know how Id have


managed without the Red
Cross. I really would have
struggled without them.

Transport support: giving patients a lift


When patients need help getting to their
medical appointments, our transport
volunteers are there to help. This
year we gave awards to four heroic
volunteers in Somerset. They help

Iliff was helped after a stay


in hospital by Red Cross
volunteers.

Photos Page 14 Rhian Waller/UNP. Page 15 Gareth Williams.

cancer patients who do not have their


own transport or are too unwell to drive.
On a daily basis, these volunteers drive
people from their homes to two cancer
treatment centres in Bristol and Taunton.
Each year as part of the Somerset
service 70 volunteer drivers help 1,000
cancer patients, clocking up 500,000
miles in the process.
Valerie Sharp has been getting regular
lifts since being diagnosed with cancer
three years ago. The 71-year-old said:
My daughter takes me to appointments
when she can, but she works full time
so its not always possible. I really
appreciate the service because it allows
me to get there under my own steam.
The drivers are brilliant. They talk about
all sorts of different subjects, which
takes your mind off whatever youre
going to have done. Id have been lost
without them!
Mobility aids
We believe there should be a right to
short-term wheelchair loans, and until
that is recognised, we shall continue to
offer short-term loans of mobility aids.
More than 136,000 items including
wheelchairs, commodes and bath
seats, were borrowed from us in 2014.

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Report and accounts 2014


Achievements and performance

Our work overseas


Emergency response and
recovery

Round-up of emergency
appeals in 2014

Every year we help communities in


crisis overseas, responding to disasters
and helping people to rebuild their
lives long after a crisis is over. During
2014 we responded to 14 international
emergencies, sending 56 staff overseas
and spending around 73.5m on our
international work.

Syria
March marked the third year of the
Syria conflict in which more than
200,000 people have been killed, with
many more injured or detained. An
estimated 12.2 million people needed
help: 7.6 million fled their homes,
4.8 million were categorised as hard
to reach, and 5.6 million were children.
More than three million others sought
refuge in neighbouring countries such
as Lebanon.

We launched five new emergency


appeals, running a total of seven.
These were in response to conflict in
Iraq, Syria, South Sudan, Gaza and
Israel; Typhoon Haiyan in the Philippines;
flooding in the Balkans; and the Ebola
outbreak in West Africa.
Disaster fund
We rely on the disaster fund to provide
immediate support when disasters
strike, helping communities affected
by the crises that often do not feature
in news headlines. In 2014 we used
the fund to help people in 17 different
countries including people in Iraq,
South Sudan and Uganda affected by
conflict, communities hit by flooding
in the UK, and those enduring food
insecurity in Zimbabwe.
Disaster Relief Alliance
We launched the Disaster Relief Alliance
in 2014, with Tesco as the founding
member. This group of individuals and
companies will invest in the British Red
Cross work in disaster preparedness,
response and long-term recovery,
supporting new ways of supplying aid.

We continued to appeal for donations,


raising 6.5m throughout the year.
This brought the total raised for this
appeal to 22.6m.
In January we supported a pilot Lebanese
Red Cross cash transfer project for
Syrian refugees and vulnerable Lebanese
families in northern Lebanon.
By February we had supplied
82,000 family food parcels to Syria,
which were handed out by the Syrian
Arab Red Crescent.
In August we supported the International
Federation of Red Cross and Red
Crescent Societies by supplying 38,000
family food parcels, as the Federation
warned that ten million people were
at risk of going hungry. In December
we made an urgent call for funds to
help provide 30,000 families in Syria
with winter kits of mats, mattresses
and blankets. Many of these families
faced their fourth freezing winter living in
makeshift tents.

This child from Daraa,


Syria is now living in
Amman, Jordan. Her
family fled across the
border with nothing.
We continued to appeal
for donations to the Syria
Crisis Appeal, raising
6.5m throughout 2014.

Throughout the year we sent three


economic security delegates, one
logistics expert and a household
economic security analyst to Lebanon.

Photo Page 17 Ibrahim Malla/IFRC.

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Report and accounts 2014


Achievements and performance

Round-up of emergency
appeals in 2014 continued
Iraq
Thousands of people were killed as
violence continued in parts of Iraq. Over
two million people fled their homes and
5.2 million people urgently needed help.
The International Red Cross and Red
Crescent Movement provided food,
water, shelter, health care and other lifesaving necessities to some of the most
vulnerable families.
Our Iraq Crisis Appeal raised
489,000 and in October we pledged
more than 140,000 to buy 25,000
thermal blankets as winter approached.
We also sent staff to support the
emergency response as temperatures
fell below freezing.
South Sudan
Conflict forced hundreds of thousands
of people to leave their homes. The rainy
season in June transformed roads and
airstrips into quagmires, preventing vital
aid from reaching people in need.
For the first time in nearly 20 years, the
International Committee of the Red
Cross (ICRC) resorted to airdrops,
providing food in seven areas including
Lakes, Unity and Upper Nile.
Our South Sudan appeal raised
313,000, which has helped to fund
placements by health and logistics
experts, as well as cash grants and
contributions to the ICRCs work in
the country.

Gaza and Israel


The 51-day Gaza-Israel conflict in
the summer left the entire 1.8 million
population of Gaza in need of some
form of humanitarian assistance. We
launched an appeal, raising 1.8m in
2014 to help teams from the Movement
repair water and sewage systems
for 1.2 million people, transport the
wounded and deliver medical supplies
to hospitals. Staff and volunteers
worked around the clock in dangerous
conditions long after the conflict ended
to help people in need.
Sadly, two Palestinian Red Crescent
Society volunteers and one volunteer
from the Israeli National Society, Magen
David Adom, were killed bringing
emergency aid to communities in need
during the conflict.
Balkans
In May, the worst floods in more than
a century left thousands of people
homeless and dozens dead in the
Balkans. Three months worth of rain fell
in just two days, forcing people from their
homes across Serbia and Bosnia and
Herzegovina. We launched an appeal to
support the emergency relief efforts in
the region, raising 223,000. The Red
Cross helped to evacuate residents, ran
rest centres and gave out vital supplies
such as food, water and blankets.

Photos Page 18 Christopher Black/IFRC, IFRC. Page 19 IFRC, Paula Bronstein.

West Africa
The worst outbreak of Ebola ever
recorded left thousands dead in Guinea,
Liberia and Sierra Leone and the
disease had not been brought under
control by the end of 2014. We sent four
delegates to Liberia and 21 to Sierra
Leone, including logisticians, doctors
and nurses.
Our Ebola Outbreak Appeal raised more
than 21.8m to support the Movements
five pillar approach to stopping Ebola:
1. Raising awareness among
communities of how the disease is
spread. Volunteers reached 3.5 million
people in 2014.
2. Finding and monitoring people
who may have come into contact with
the disease over 44,700 people
were traced who may have had contact
with Ebola.
3. Treating patients at the specially
designed treatment centres in Kenema
and Kono (Sierra Leone) and Macenta
(Guinea). Health staff admitted over 700
patients and more than 300 were given
the all-clear.
4. Red Cross burial teams carried
out more than 10,600 safe and dignified
burials of infectious bodies across West
Africa. They disinfected over 24,700
homes and other buildings.
5. Working with affected communities
and survivors to reduce stigma,
supporting over 32,000 people.

Philippines
In November 2013, one of the most
devastating storms ever to make landfall
hit central Philippines. It affected over
five million people, destroying tens of
thousands of homes and livelihoods.
By the time our appeal closed in
May 2014, we had raised 23.5m
to support communities affected by
Typhoon Haiyan. This included helping
the Philippines Red Cross set up a
recovery programme in Iloilo province.
The programme covers everything from
providing shelter, water and drainage
to livelihoods projects and helping
communities withstand future disasters.
We also gave more than 5,000
households cash grants and training to
help kick-start their businesses again.
We helped around 3,500 households to
repair and rebuild their shelters and built
more than 70 new homes for families
whose houses were destroyed by the
typhoon.
But we didnt just focus on Iloilo.
We also supported the International
Federation of Red Cross and Red
Crescent Societies work with 8,500
households across Panay, Cebu
and Leyte.

18 / 19

Report and accounts 2014


Achievements and performance

Resilience
We dont just help communities after
major disasters. We work with a huge
range of community groups every year
so they can prepare for, withstand and
recover from a range of crises, including
illness, food shortages, earthquakes
and cyclones.
Here are just some of our overseas
resilience projects from 2014.
Safer houses in Haiti
In January 2010, a 7.0 magnitude
earthquake caused devastation in Haiti.
Weve been working there ever since
with the residents of Delmas 19, a poor
suburb of the capital Port-au-Prince.
Alongside literacy lessons and business
grants, weve helped to train 10 boss
masons and 40 trainee masons.
Construction skills, knowledge and
standards are being passed on to this
new workforce, who will help bring
about a long-term change in building
practices. In place of the flimsy concrete
homes that were destroyed, the masons
have built new houses that are designed
to withstand seismic shocks from future
earthquakes. They have also created
new paths to cover open waterways
that were full of rubbish and sewage.
Healthy households in Afghanistan
A community health programme
funded by the British Red Cross
is bringing clean water, toilets and
health information to villages in rural
Afghanistan. In 2013 and 2014, it
helped tens of thousands of people
including hundreds of pregnant women.
A 2010 estimate by the United Nations
suggested Afghanistans maternal
mortality ratio was among the highest
in the world, at around 460 deaths per
100,000 live births. The Afghanistan
Red Crescent has been helping
communities in remote areas
understand when they should seek
treatment for women in labour.

Cultural factors increase health risks


facing pregnant women. Groups
of older women grandmothers
committees have received special
training that will help influence behaviour
in their villages.
Health advisor Gregory Rose said:
Younger women often dont have a
voice in the community, whereas older
women tend to attract more respect.
Pragmatically, the Red Crescent
decided to work more with groups of
women who would influence their own
sons and daughters.
Building businesses in Bangladesh
As well as threatening lives and homes,
cyclones can wipe out peoples
incomes. And with no other way of
earning money, those affected will
struggle to rebuild their lives after the
wind and waves die away.
Thats why protecting incomes
and finding new ways of making a
living are key parts of a four-year
Bangladesh Red Crescent programme.
Supported by the British Red Cross,
the programme is helping about
60,000 people in the coastal districts of
Barguna and Patuakhali to improve their
shelter, drainage, hygiene, nutrition and
livelihoods. Its also providing cleaner,
safer water and help in planning for
future disasters.
Fighting illness and stigma in
Kazakhstan
A Kazakhstan Red Crescent
programme that helps people living
with TB and HIV is giving patients the
emotional strength to win the fight
against their illness.
Theres a lot to celebrate as a result of
this programme, which weve been
supporting since 2011. In Kazakhstan
people with TB face discrimination
and can even be cut off from society.
But an amazing 99 per cent of the

Photos Page 21 Swoan Parker, Victor Lacken/IFRC.

Its hard work transporting


bricks and mortar, but I
enjoy it. I feel good when we finish
building a house. People say that
house was built by a woman and
I feel very proud. When we finish
our training well get a certificate,
which we can use when we apply
for jobs. My children are happy for
me, they call me boss, they dont
call me mum anymore.
Micheline Richard, 44,
trainee mason.

TACKLING
EBOLA:

THE RED CROSS


WORK IN NUMBERS

44,700
people
traced

10,600
safe and
dignified
burials

programmes TB clients have developed


a more positive attitude towards
TB treatment through help from
psychologists, lawyers, social workers
and peer support groups.
When those taking part were surveyed,
100 per cent of people living with HIV
knew ways to prevent TB and 99
per cent knew TB was curable. The
programme also provides food parcels,
toiletries and legal help, as well as
educating the public and the families of
people with TB and HIV.
Shelter from the cold: Mongolia
In Mongolia, we set out to find a shelter
that could withstand the extreme
winters, as temperatures drop to below
-10C. This is the first phase of a project
that will:
(a) test whether improved shelter
could benefit other countries besides
Mongolia
(b) help Mongolians prepare for
a range of disasters.
In 2014, we commissioned technical
research into shelters from the
International Federation of the Red
Cross and Red Crescent Societies
Shelter Research Unit (IFRC SRU).
We worked with IFRC SRU to ensure
they had:
>>technical support (from our shelter,
logistics and health advisors)
>>somewhere to test the proposed
solutions in Mongolia
>>full technical capacity.
Architecture and design specialists
Foster and Partners filled in any
technical gaps. The results will be tested
and analysed in 2015.

32,000
people got
support to
tackle stigma

20 / 21

Report and accounts 2014


Achievements and performance

Supporting the Movement


Preparing for earthquakes in Nepal
In the capital of Nepal, a deadly
earthquake could be just around the
corner. Kathmandu was flattened by a
huge earthquake in 1934 and another
is now anticipated. So the British and
Nepal Red Cross societies are working
together to help the city get ready.
This involves giving the public vital
information such as how to prepare a
handy bag of emergency items, or follow
the simple drop, cover, hold routine
when an earthquake strikes. But how do
you communicate these messages to
people in such a crowded, chaotic city?
The answer: a travelling kiosk, equipped
with a TV screen, sound system,
posters, leaflets, a quiz, giant board
games and a dedicated team of
volunteers to help spread the word.
The kiosk is visiting important locations
around the city, attracting hundreds of
residents every day.
We also helped to build an ingenious
solar-powered blood bank out of
shipping containers.
Ashok Nawani, British Red Cross
logistics manager, said: An emergency
blood bank is essential. Weve
established there will be a huge need for
blood after an earthquake.
The centre will include a waiting room
and donation area, a laboratory with
blood testing and screening facilities,
and rooms where staff can sleep
between shifts in an emergency,
they may not be able to return home.
And if the electricity cuts out during an
earthquake, the solar-power will prove to
be a lifesaver for survivors.

Protection for aid workers


We also continued to support the
Movements call for respect for the Red
Cross and Red Crescent emblems and
the protection of aid workers. Tragically,
by the end of the year, 40 Syrian Arab
Red Crescent aid workers and seven
members of the Palestine Red Crescent
Society had been killed in conflicts.

In the Democratic Republic of Congo,


we worked together on a proposal for a
pilot cash programme to support female
victims of violence. After a challenging
recruitment process, a delegate was
sent to the country in November. The
pilot project will run throughout 2015
and in mid-2015 well evaluate its
effectiveness, value for money and the
possibility of expansion. We continued
to collaborate well with the ICRC in
Northern Ireland, on areas including safer
access and the Fundamental Principles.

Working with DFID


Within the Movement, the British
Red Cross has responsibility for
co-ordinating the relationship with
the UK governments Department for
International Development (DFID) on
behalf of the International Federation
and its National Societies on policy,
operational and financial issues.

We also began to work with the ICRC on


humanitarian response in urban settings.
We presented our latest findings and
some proposals to work together on
some of the issues to a global ICRC
economic security meeting.

In 2014, DFID gave a grant of 1.6m


to the British Red Cross as part of a
Programme Partnership Arrangement
(PPA), 8m to the International Federation
of Red Cross and Red Crescent Societies
as part of an Institutional Strategy
Arrangement, and a number of longterm grants to National Societies and
contributions to emergency appeals.

International humanitarian
law and policy
The British Red Cross continues to
be recognised as a leading National
Society in international humanitarian
law (IHL), and as a reliable and expert
partner to the government and the UK
armed forces.

In 2014, DFID donated more than


31.5m to the British Red Cross,
of which 18.6m was for
emergency appeals.
ICRC partnership
Highlights of our key areas of support
to the International Committee of the
Red Cross (ICRC) in 2014 include the
introduction of new tools for market
analysis in conflict-affected areas. We
worked with the ICRC on cash-based
programming, as the ICRC continued
the work developed with the British Red
Cross in Azerbaijan, supported by a
British Red Cross delegate.

We are helping people in Kathmandu prepare for an earthquake

Photo Pages 22-23 Matthew Percival/BRC.

In 2014, we delivered IHL training for


Foreign and Commonwealth Office
(FCO) legal advisers and Department
for International Development (DFID)
policy officials. We also held our biennial
summer school on IHL, signed a
memorandum of understanding with
the Commonwealth Secretariat on
the promotion of IHL, and held a joint
conference with the FCO to mark 150
years of modern IHL. We provided
specialist advice to FCO, the Ministry of
Defence and the Movement on a range
of IHL issues, and supported the UK
government to ensure sufficiently strong
language and a broad scope for the
arms trade treaty, which came into force
on 24 December.

22 / 23

Report and accounts 2014


Achievements and performance

2014 in two
minutes
January
> Volunteers battled
wind, rain and floods to
support people affected
by winter weather
across the UK.

February
> We donated
money from the
disaster fund
as over 24,000
people fled to
Cameroon to
escape violence in
the Central African
Republic.

March
> We continued
to support a
programme for
people living with
TB and HIV in
Kazakhstan.

May
> Red Cross
Week saw
cake sales,
concerts, runs,
walks and
men dressing
as Lady Gaga
all to raise
over 1m
for people
in crisis.

June
> We appealed for
donations to help
people in Serbia
and Bosnia and
Herzegovina after
the worst floods
there in more than
a century.

July

September
> We raised
money to help
bring food, water,
shelter and health
care to people
affected by the
violence in Iraq.

October

> Nearly 160 asylum


seekers were housed
in Bournemouth
hotels without food,
medicine or clothing.
We provided vital
essentials and
emotional support.

Photos Page 24 Land Rover, Jon Bjrgvinsson/ICRC, Matthew Percival/BRC, Marko Djurica/Reuters, Ibrahim Malla/IFRC.
Page 25 Matthew Percival/BRC, IFRC, Museum & Archive/BRC, James Sharrock/Burning Eye Photography.

> We continued
fundraising to tackle
Ebola in West Africa.
In the UK, volunteers
helped Tesco, Fareshare
and The Trussell Trust to
collect food for families
hit by food poverty.

November
> To mark the
centenary of the
First World War we
began to publish
the personnel
records of 90,000
volunteers online,
100 years after
they were written.

April

> As the number


of Syrian refugees
registered by the UN
in Lebanon passed
one million, we
continued to appeal
for donations to our
Syria Appeal.
August
> Comedian Matt
Lucas and DJ
Nihal tweeted an
ask for donations
to our appeal for
people affected
by conflict in Gaza
and Israel.

December
> A group of music stars
united as The Peace
Collective to record The
Farms 1990 hit song, All
Together Now, to raise money
for the British Red Cross.
24 / 25

Report and accounts 2014

Introducing the
next five years

Our plans
for 2015

In 2015, we launch our 2015-2019 corporate strategy,


Refusing to Ignore People in Crisis. Heres a whistle-stop
tour through the six themes of the strategy.

As we embark on our new strategy,


these are the issues we will focus
on in 2015.

Put people in crisis at


the heart of everything we do
This will be our guiding principle in
absolutely everything we do.
Focus our resources on where
we can help the most
In the UK we will make sure our services
are high-quality, integrated, accessible
and help the people most in need.
Overseas well use our expertise, skills
and funding to help National Societies
deal with some of the overwhelming
crises they face, including those
emergencies that do not make the
headlines.
Speak up for people in crisis
Our voice will help us transform the
way people think about us so that
more people access our services, get
excited about us and support what we
do. We will speak up loud and clear
for those who need our help, changing
policy and practice at national, local and
international level.

Use technology to help more people


We are going to make sure we have
technology that helps us connect with
the people we help as well as our
supporters, volunteers and staff. We
will develop our information and digital
technology to suit the people who use
them, and improve the way we collect
and use data.
Attract and keep the right people to
deliver our services
We want to ensure we have the
right people in the right roles who
believe in our mission, values and
fundamental principles. We want to be
an organisation that people would like to
work and volunteer for.
Ensure value for money and share
responsibility for raising money
It is more important than ever that all
staff and volunteers work together to
maximise our income. When we receive
donations and income, we will make
sure that every pound makes
the biggest possible impact on people
in crisis.

In the UK
We will help more than 82,000 people
to live independently at home. This will
include making sure patients cope as
they leave hospital and return home,
and providing mobility aids to everyone
who needs them. We will teach lifesaving first aid skills to the groups
who most need them, e.g. homeless
people, carers and young offenders.
When people are affected by severe
weather, house fires and other shock
events, we will help them cope. We will
provide practical and emotional support
to refugees and asylum seekers, and
increase our capacity to help victims of
human trafficking.
Overseas
We will support those countries that are
most at risk of crisis but have the least
capacity to prepare for, withstand and
recover from them. We will work closely
with National Societies in Africa, Asia
and the Middle East. Well share our
leadership and technical expertise to
help the Movement respond effectively
to crises. During conflicts and natural
disasters, we will support the Movement
to help those affected.

Advocate
We will raise our voice with and on
behalf of people in crisis, calling for:
>>access to short-term wheelchair loans
and preventative services in the UK
>>an end to delays in the asylum system
that leave people destitute
>>legal support for family reunion for
those with leave to remain in the UK
>>resilience to be given greater
prominence on the international
development agenda.
Harness technology
We will use technology and research to:
>>inform what we do
>>make it easier for people to access
our services
>>put more life-saving skills in peoples
pockets with a new emergency
response mobile app
>>connect with our supporters in
new ways.
Resources
We use our resources to achieve the
best possible outcomes for those
who seek or receive our help. We
will consider our structures, ways of
working and processes to ensure
were doing the best job we can,
making sure we are flexible to respond
to any new needs.

26 / 27

Report and accounts 2014


Fundraising and finances

Review of fundraising
and finances
19%
14%

Contracts and fees

Grants

8%
Legacies

3%

Other income

261.8m
Income

11%
Retail

45%
Donations

Our income grew 15 per cent to 261.8m in 2014,


which is the highest it has ever been. This is
testament to the generosity of our donors as well as
the commitment of our staff and volunteers.
Our work is funded through a mixture of donations,
earned income from delivering our services, and
government grants. We are pleased to report
growth across all of our key income streams:

On the centenary of
the First World War
volunteers began to help
us publish the personnel
records of 90,000 wartime
volunteers (VADs).
Photos Page 28 Museum and Archives/BRC.

>>Donations grew ten per cent to 116.9m,


including emergency appeals. We are thankful
for the continuing support of our regular givers,
who increased their donations by six per cent to
51.1m. This figure increases to over 60m when
attributable gift aid is included.
>>Retail income grew three per cent to 29m
thanks in part to new shops opening in 2014.
>>Our income from legacies increased 2 per cent to
22.2m for the year.

>>Grant income has increased 45 per cent to


36.3m in 2014 and the majority of these are for
our international programmes. We are thankful for
the continued support from the Department for
International Development, whose grant income
increased 10.9m to 31.5m.
>>Our work in the UK is funded through a mixture
of donations and income generated from delivering
our services, principally contracts and fees for our
first aid training and independent living activities.
Our contract and fee income increased 11 per
cent to 49m with growth across our main
independent living services as well as our support
in emergencies and recovery work.

28 / 29

1%

Governance

Report and accounts 2014


Fundraising and finances

13%

19%

Emergency
response and
recovery

Cost of
generating
voluntary
income

41%

9%

256.6m

International

Cost of
generating
retail sales

Expenditure

5%
Refugee
support

180.7m
Charitable
expenditure

71%

14%
Education

27%

Charitable
expenditure

Independent
living

Income (m)
Expenditure (m)

89.3

Net income (m)

Fundraising

Retail

6.1

22.9

29.0

49.8

>>Despite the significant increase


in voluntary income, our costs in
generating this income increased just
one per cent in 2014 as we strive to
fundraise as efficiently and effectively as
possible.
>>Our retail costs were five per cent
lower, reflecting continued tight
management of costs as well as a
reduction in the provision for wear and
tear to retail properties.
>>Expenditure on our charitable activities
was up 17 per cent to 180.7m in
2014. You can see what we achieved
with this money in the activities section
of this report.
>>Governance costs increased three
per cent to 3.2m. These include our
annual subscription of 1.8m to the

139.1

All of our expenditure, from investment in fundraising to


frontline activities, is aimed at helping people in crisis. Our
total expenditure increased 11 per cent to 256.6m in 2014.

International Federation of Red Cross


and Red Crescent Societies.

were more than we anticipated after


successfully selling some properties.

Grant expenditure
We award grants to partner
organisations as part of delivering our
charitable activities. We undertake a
formal appraisal of the project and
partner organisation before making
the grant subject to specific grant
agreements with the partners. We
monitor and evaluate progress and if we
are not satisfied that the grant is being
managed according to the agreement,
we can delay or discontinue it. In 2014
we spent 51.3m (2013: 32.2m) in
grants to international, national and local
partner organisations. Further detail is
shown at note 4 to the accounts.

Our reserves policy is set to ensure that


there is no disruption to our services in
the event of an unforeseen reduction in
income or increase in expenditure. Our
free available reserves at the end of the
year were 35.6m (2013: 32.2m). This
represents just over two months of general
funds expenditure. Our latest plans show
reserves decreasing towards the policy
minimum level of 22.5m by 2017.

Reserves
We have been employing reserves
over the past few years to do more to
help people in crisis. Reserves in 2014

Pensions
We have two defined-benefit pension
schemes, which are both closed to
new members. The net pension surplus
reported on an FRS 17 basis is 1m as at
31 December 2014 (2013: 0.8m) and the
actuarial loss during the year was 0.5m
(2013: 0.3m loss). A deficit reduction plan
is in place for one of the schemes.

30 / 31

Report and accounts 2014


Risks and governance

Free reserves
50.0

Minimum level

40.0

Principal risks and


uncertainties

30.0

Working to help people in crisis entails


taking risks. The trustees are ultimately
responsible for risk management and
they are satisfied that appropriate
internal control systems and risk
management processes are in place.

20.0

10.0

They consider that the following


framework provides the British Red
Cross with adequate measures to
reduce the impact of identified risks:
2010

2011

2012

2013

We also have contingent liabilities


in relation to the membership of
The Pensions Trusts growth plan.
The British Red Cross has sole liability
for an estimated 6.4m (2013: 5.6m).
A deficit reduction plan is also in place
for this scheme.
Investments
If funds are not immediately required
we invest them in low-risk funds and
deposits. Our objective is to generate
a return whilst maintaining the capital
value. We held total investments of
47.5m as at 31 December 2014
(2013: 48.3m). Our investments
reported net gains of 0.5m in 2014
(2013: 1.2m).
An investment sub-committee of the
finance, risk and audit committee
regularly reviews our investment portfolio
and performs an annual review of our
investment policy. The investment subcommittee is satisfied with the overall
performance of the investment portfolio
against agreed benchmarks.

2014

2015

2016

2017

The British Red Cross will not directly


invest in companies with a significant
interest in trading in and manufacture of
arms or in the manufacture of tobacco
products.
Going concern
The board of trustees has reviewed the
British Red Cross financial position,
taking into account the satisfactory
levels of reserves and cash, budgets,
financial projections and systems of
financial and risk management. As a
result, the board believes the British
Red Cross is well placed to successfully
manage operational and financial risks.
The board therefore considers there
is a reasonable expectation that the
charity and the group have adequate
resources to continue work for the
foreseeable future. For this reason
the board continues to adopt the
going concern basis of accounting in
preparing the accounts.

>>The finance, risk and audit committee


reviews risk and internal controls,
approves the annual risk-based internal
audit plan and receives regular internal
audit reports, regular progress reports
and corporate risk updates.

>>Senior management review key


strategic and operational risks on a
regular basis. They consider progress on
mitigating actions, new and emerging
risks and opportunities.
>>Board sub-committees and
management groups help identify,
evaluate and manage risks relating
to fundraising, investments, business
continuity, health and safety,
remuneration, major infrastructure and
IT projects and operational needs,
including independent living and support
in emergencies.
Our most significant risks and mitigating
actions are set out in the below table.

Risk

Mitigating actions

Security and safety of our people

Policies, procedures and an international security framework


are in place to direct and guide security and safety practices
whilst overseas.

Significant breaches in security and safety


practices may lead to an incident that
compromises the personal safety, health or
wellbeing of our people, in particular those
working overseas in an environment of
heightened risk for humanitarian workers.

A health, safety and security committee has been established


with board representation to ensure oversight and scrutiny of
risk mitigations.
Groups and committees are in place to monitor security and
safety practices and associated risks are reviewed periodically.
Routine inspections, monitoring and incident reporting
processes are in place across all regulated services.

Digital technology
New digital technology developments may
be missed or may not be implemented
appropriately. This could lead to organisational
inefficiencies including increased expenditure,
time and resource requirements and reduced
engagement with donors and people in crisis.

A chief information officer has been appointed to lead on


information and digital technology.
A programme office and clear programme governance
arrangements are being established.
Strong project and change management capabilities are being
developed through the selection and training of key people.

32 / 33

Report and accounts 2014


Risks and governance

Principal risks and


uncertainties (continued)
Risk

Mitigating actions

Capacity to deliver the strategy

Appropriate structures to support the delivery, monitoring and


reporting on performance indicators related to the strategy are
being developed.

Without effectively implementing appropriate


changes to our organisational design, capacity
and capability, we may not manage the
scale and complexity of change needed to
successfully deliver the new strategy.

Roles critical to the delivery of the strategy are being assessed


and resources reassigned through focused recruitment and
development to support critical staff and volunteer retention
throughout the strategy.
There will be clear prioritisation and distinction made between
business as usual and development activity.
Programme management will be enhanced by establishing
clear governance and reporting structures for all programmes
of activity critical to the delivery of the strategy.

Media activity within the sector


Brand media activity and spend by other
charities within the sector may surpass our
own, weakening our position in the market
place and resulting in a reduced overall
impression, lower public consideration
to support and less awareness of our
service offers, impacting on the delivery of
our strategic ambition.
Risks to trust in charities
Failure to engage with reports or comments
from the media, opinion formers or the public
may erode trust in our brand, affect our
position in the sector and may impact on the
publics propensity to support us.

There is continual tracking of sector brand media activity and


market intelligence.
We will maximise media planning, seeking media/corporate
partners to extend our reach and impact. We will create
annual strategically aligned, integrated campaigns.
Senior management are engaging with the development
of a business intelligence framework to ensure effective
decision making in relation to the development of our brand
in key markets.
We will aim to be transparent and trustworthy, providing
excellent services and programmes that offer value for money.
There is a pro-active and co-ordinated approach to reputation
management with raised internal awareness.
We will monitor potential areas of vulnerability. Risks
and issues will be managed and pro-actively mitigated
where possible.

Governance
The British Red Cross was founded
in 1870, and incorporated by Royal
Charter in 1908. A supplemental
Royal Charter took effect on 1 January
1998 and this was revised by HM The
Queen in Council on 17 July 2003.
The governing instruments under which
the British Red Cross operates comprise
this revised charter, the standing orders
and other policies agreed from time to
time by its governing body, the board
of trustees.

The board is made up of nine elected


members (chosen from our active
volunteer base) and up to eight coopted members appointed by the
board (which includes the roles of
chair and treasurer). The board of
trustees is committed to ensuring that
governance arrangements are effective
and relevant, as well as ensuring that
the board members reflect the breadth
of the services we provide and the
communities in which we operate.

The legal objects of the British Red


Cross, as laid out in its revised Royal
Charter, are to provide assistance to
victims of armed conflicts and to work
for the improvement of health, the
prevention of disease and the prevention
and alleviation of human suffering in the
UK and throughout the world.

A nominations committee oversees


trustee recruitment. The recruitment
for elected trustees is conducted via a
national electoral college of volunteer
council chairs. The nominations
committee is also responsible for the
nomination of new co-opted trustees for
board consideration. All new trustees
are provided with a structured induction
programme. Trustees also undertake
a range of training initiatives during the
year to ensure their skills are relevant
and up to date.

Board of trustees
The board of trustees has ultimate legal
responsibility for our organisation and
works to ensure good governance,
with the help of its sub-committees.
The board agrees the overall strategic
direction and is our highest decisionmaking body. Its members are
volunteers. They work alongside the
senior management team, who are
responsible for the implementation of
policy and for the management of the
day-to-day running of the organisation.

Trustees terms of office last for


three years, and they can serve two
consecutive three-year terms, after
which they must stand down from the
board for at least one year.

Board

Nominations
group

Clinical
governance and
patient safety
committee

Finance, risk and


audit committee

Remuneration
committee

Health, safety
and security
committee

Ethical
fundraising
review
committee

Investment
sub-committee

34 / 35

Report and accounts 2014


Risks and governance

Structure
A wholly owned trading subsidiary,
Britcross Limited, donates its trading
profits to the British Red Cross. The
British Red Cross has eight branches in
British Overseas Territories.
The British Red Cross is a prominent
member of the International Red
Cross and Red Crescent Movement,
with volunteers and staff contributing
to a number of initiatives within the
International Federation of Red Cross
and Red Crescent Societies, the
International Committee of the Red
Cross (ICRC) and 189 member Red
Cross and Red Crescent Societies.

incoming resources and application of


resources of the charity for that period.
In preparing these financial statements,
the trustees are required to:
>>select suitable accounting policies and
then apply them consistently
>>observe the methods and principles in
the Charities SORP
>>make judgments and estimates that
are reasonable and prudent
>>state whether applicable accounting
standards have been followed
>>prepare the financial statements
on the going concern basis unless it
is inappropriate to presume that the
charity will continue in business.

The British Red Cross is also a member


of the Disasters Emergency Committee,
an umbrella organisation for 13 leading
UK humanitarian agencies that unites
aid efforts in times of disaster in poorer
countries around the world.

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, the Charity (Accounts and
Reports) Regulations 2008, the Charities
and Trustee Investment (Scotland) Act
2005, the Charities Accounts (Scotland)
Regulations 2006 (as amended) and the
provisions of the Royal Charter. They
are also responsible for safeguarding
the assets of the charity and hence for
taking reasonable steps to prevent and
detect fraud and other irregularities.

Carbon emissions
In 2013, we were awarded the Carbon
Trust Standard Award a first for a
major UK charity in recognition of our
achievements in managing the reduction
of carbon emissions from our properties.
In 2014 we installed solar panels on a
further two buildings making a total of
611 panels now installed. Since the
start of our programme we have
reduced our carbon emissions from
heat and power by 1,260 tonnes (15
per cent) this reduction equates to a
saving of 252,000.
Trustees responsibilities
The trustees are responsible for
preparing the trustees annual report
and the financial statements in
accordance with applicable law and
United Kingdom Accounting Standards
(United Kingdom Generally Accepted
Accounting Practice).
The law applicable to charities in
England, Wales and Scotland 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 of the

Financial statements are published


on the organisations website
(redcross.org.uk) in accordance with
legislation in the UK governing the
preparation and dissemination of
financial statements, which may vary
from legislation in other jurisdictions.
The trustees responsibilities also
extend to the ongoing integrity of the
financial statements.
Remuneration policy
The British Red Cross has an annual
income of over 260m and employs
over 3,900 people working in the
UK and overseas. The aim of our
remuneration policy, which applies to all
employees, is to offer remuneration that
is fair and appropriate for the roles they
perform and the responsibilities they

undertake to deliver our charitable aim


of refusing to ignore people in crisis.
We employ people whose skills and
competences are in demand in a
variety of sectors including the health
service, local government and other
charities. They require the same levels
of professional and occupational
qualifications and experience as
staff working in these sectors. In
setting remuneration levels we have
regard to pay in organisations which
employ individuals with similar skills,
competences and qualifications. The
British Red Cross generally expects to
pay at a level comparable to that in the
public sector and the charity sector. At
senior levels this results in remuneration
levels that are well below that for similarsized organisations in the private sector
and some areas of the public sector.
To underpin our values and our
commitment to internal fairness in
remuneration, all employees roles
are reviewed and fitted into a grade
structure consisting of seven bands.
Salary progression within bands is linked
to performance. The salary and grade
structures are currently under review to
ensure that our practice and policy are
fully aligned with our charity strategy.
The British Red Cross operates a
defined contribution pension scheme, to
which all eligible employees are autoenrolled. Anyone who does not qualify
automatically in this way may opt to join.
The minimum contribution level is one
per cent of salary for an employee which
is matched by the organisation. Staff
may opt to make higher contributions
which we will match to a maximum of
six per cent.
Information on the grading structure,
maximum and minimum remuneration
levels for each grade, and all benefits
(including pension) are available to
all employees.

such as annual leave and pensions,


are generally reviewed annually. Inputs
to the review include the financial
performance of the British Red Cross,
information on staff turnover and the pay
and benefits in organisations employing
comparable workers, organisation
budgets and annual plans. In 2014
individual salaries were increased
by two per cent, subject to
satisfactory performance.
The board of trustees has a
remuneration committee with the
following responsibilities:
>>To recommend to the board for
adoption the broad salary policy, pay
structure and changes to terms and
conditions for the organisation
>>To recommend to the board any
changes to the salary and other benefits
available to the chief executive that may
be required to reflect changes in market
forces and performance
>>To receive and agree
recommendations from the chief
executive, for salary and other benefit
changes, for all members of the
executive leadership team, where
market forces and other matters dictate
the need.
Membership of the remuneration
committee includes:
Paul Taylor (vice chair, board of trustees)
chair of remuneration committee
John Dauth (vice-chair, board of
trustees)
David Howell (treasurer)
Steve John (trustee)
Lise Llewellyn (trustee)
Vicky Wright (external expert)
The chief executive officer attends all
meetings but withdraws when his own
remuneration is discussed.

The levels of salary available in the


structure, together with other benefits

36 / 37

Report and accounts 2014


Risks and governance

The following details relate to the senior executive team


as at 31 December 2014:
Job title

Key areas of responsibility

Basic annual salary

Pension entitlement

Chief executive

Leading the organisation, which has an annual


income of over 260m and employs over 3,900
people and 24,000 volunteers, delivering services
and programmes in the UK and globally

170,000

GPP*

Director of
fundraising

Generating income of nearly 170m per annum


from our fundraising and retail activities

111,742

GPP*

Director of
finance and
business
development

Financial systems and processes; Management


information systems; Legal; Audit and risk
management; Property

100,708

GPP*

Director of
people and
learning

UK and international HR for over 3,900 people;


Volunteer management for 24,000 volunteers;
Learning and development; Youth education and
engagement; Facilities management

102,000

Final Salary**

Director of
international
operations

All international strategy; Programming; National


Society partnership development; Support in
capacity building; Emblem advice and support;
Relationship with DFID and Movement relations

93,820

GPP*

Director of UK
operations

All service delivery in UK through both area


96,000
operations teams and nationally led functions;
Support in emergencies in the UK; Education;
Relationships with commissioning bodies and UK
focussed government bodies; all property, vehicles
and other resources in UK operations

Final Salary**

Director of
communications

PR and public affairs; Brand management and


marketing; Internal communications

GPP*

GPP* Group Personal Pension


plan. The British Red Cross matches
an employees contributions to their
personal pension fund, to a maximum
of six per cent of basic salary. This can
be achieved through salary sacrifice
and the British Red Cross pays half
of the employers national insurance
contribution saved as a result to the
individuals fund.
Final Salary** the defined benefit
British Red Cross Pension Fund was
closed to new entrants with effect
from 1 September 1997. Employer
contributions of 28.2 per cent of basic
salary are made on behalf of each
serving member, who also contribute
16 per cent.
Public benefit
The board of trustees has given
regard to the legislative and regulatory

93,365

Life is so bad out there,


you just survive. People
are living from one day
to the next. People know
the reputation of the Red
Cross. The majority of
patients regard us as
heaven-sent.
Dr Frank Ryding worked
in South Sudan in 2014,
his 35th year of service.

requirements for disclosing how its


charitable objectives (as set out in our
Royal Charter) have provided benefit to
the public. The board of trustees has
complied with the duty set out in
section 17 of the Charities Act 2011,
and that set out by the Office of the
Scottish Charity Regulator in the
Charities and Trustee Investment
(Scotland) Act 2005. This report outlines
how our achievements during 2014
have benefited the public, either directly
or indirectly.
On behalf of the trustees,

David Bernstein CBE


Chair of the board of trustees
24 March 2015
Photos Page 39 Pawel Krzysiek/ICRC, Jacob Zocherman/ICRC.

38 / 39

Report and accounts 2014

Independent auditors
report to the trustees of
the British Red Cross
We have audited the financial
statements of the British Red Cross
for the year ended 31 December 2014
which comprise the Consolidated
Statement of Financial Activities, the
Consolidated and Charity Balance
Sheets, the Consolidated Cash
Flow Statement and the related
notes 1 to 24. The financial reporting
framework that has been applied in
their preparation is applicable law and
United Kingdom Accounting Standards
(United Kingdom Generally Accepted
Accounting Practice).
This report is made solely to the charitys
trustees, as a body, in accordance with
section 144 of the Charities Act 2011,
regulations made under section 154 of
that Act, section 44(1)(c) of the Charities
and Trustee Investment (Scotland) Act
2005 and regulation 10 of the Charities
Accounts (Scotland) Regulations 2006
(as amended). Our audit work has been
undertaken so that we might state to
the charitys trustees those matters
we are required to state to them in
an auditors 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
charity and the charitys trustees as a
body, for our audit work, for this report,
or for the opinions we have formed.

Respective responsibilities of
trustees and auditor
As explained more fully in the Trustees
Responsibilities Statement, the trustees
are responsible for the preparation of the
financial statements which give a true
and fair view.
We have been appointed as auditor
under section 144 of the Charities
Act 2011 and section 44(1)(c) of the
Charities and Trustee Investment
(Scotland) Act 2005 and report in
accordance with regulations made
under those Acts. Our responsibility
is to audit and express an opinion on
the financial statements in accordance
with applicable law and International
Standards on Auditing (UK and Ireland).
Those standards require us to comply
with the Auditing Practices Boards
Ethical Standards for Auditors.
Scope of the audit of the financial
statements
An audit involves obtaining evidence
about the amounts and disclosures
in the financial statements sufficient
to give reasonable assurance that
the financial statements are free from
material misstatement, whether caused
by fraud or error. This includes an
assessment of: whether the accounting
policies are appropriate to the groups
and the parent charitys circumstances
and have been consistently applied

and adequately disclosed; the


reasonableness of significant accounting
estimates made by the trustees;
and the overall presentation of the
financial statements. In addition, we
read all the financial and non-financial
information in the annual report to
identify material inconsistencies with
the audited financial statements and
to identify any information that is
apparently materially incorrect based
on, or materially inconsistent with,
the knowledge acquired by us in the
course of performing the audit. If we
become aware of any apparent material
misstatements or inconsistencies we
consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
>>give a true and fair view of the state of
the groups and of the parent charitys
affairs as at 31 December 2014 and
of the groups 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 Charities
Act 2011, the Charities and Trustee
Investment (Scotland) Act 2005 and
regulation 8 of the Charities Accounts
(Scotland) Regulations 2006 (as
amended).

Matters on which we are required to


report by exception
We have nothing to report in respect
of the following matters where the
Charities Act 2011 and the Charity
Accounts (Scotland) Regulations 2006
(as amended) requires us to report to
you if, in our opinion:
>>the information given in the Trustees
Annual Report is inconsistent in any
material respect with the financial
statements; or
>>proper accounting records have not
been kept by the parent charity; or
>>the parent charity financial statements
are not in agreement with the
accounting records and returns; or
>>we have not received all the
information and explanations we require
for our audit.

Deloitte LLP
Chartered Accountants and Statutory
Auditor
London, UK
7 April 2015
Deloitte LLP is eligible to act as an
auditor in terms of section 1212 of
the Companies Act 2006 and
consequently to act as the auditor of
a registered charity.

40 / 41

Report and accounts 2014


Accounts

Accounts for the year ended


31 December 2014

Our fantastic supporters


across the UK went all
out to raise money for
Red Cross Week 2014.
They raised more than
1.1 million through
activities including
skydiving, fancy dress,
cake sales, sponsored
walks, bucket collections
and much more.
Photo Pages 42-43 Alex Rumford.

42 / 43

Report and accounts 2014


Accounts

Consolidated statement of financial activities


For the year ended 31 December 2014
Unrestricted
Notes
m

Consolidated and charity balance sheets


As at 31 December 2014

Restricted
m

2014
Total Unrestricted
m
m

Restricted
m

2013
Total
m

Incoming resources
Incoming resources from generated funds
Voluntary income
Retail
Investment income
Total incoming resources from
generated funds

Incoming resources from charitable activities


UK
Support in emergencies
Refugee support
First aid and humanitarian education
Independent living
International
Total incoming resources from
charitable activities
3

107.7
29.0
0.3

32.8
-

140.5
29.0
0.3

105.2
28.1
0.1

23.1
-

128.3
28.1
0.1

137.0

32.8

169.8

133.4

23.1

156.5

6.4
0.1
15.9
25.9
1.3

0.4
0.9
0.4
0.9
33.1

6.8
1.0
16.3
26.8
34.4

4.3
15.6
23.9
1.0

0.1
0.6
0.5
0.6
22.5

4.4
0.6
16.1
24.5
23.5

49.6

35.7

85.3

44.8

24.3

69.1

0.5

0.1

0.6

0.5

0.5

6.1

6.1

2.4

(0.1)

2.3

193.2

68.6

261.8

181.1

47.3

228.4

Total incoming resources


Resources expended

47.2
22.9
70.1

2.6
2.6

49.8
22.9
72.7

46.5
24.1
70.6

2.9
2.9

49.4
24.1
73.5

22.8
6.5
24.8
47.2
18.1

1.1
1.2
0.8
2.0
56.2

23.9
7.7
25.6
49.2
74.3

20.8
6.1
24.7
45.8
16.7

1.0
0.6
0.9
1.6
36.9

21.8
6.7
25.6
47.4
53.6

119.4

61.3

180.7

114.1

41.0

155.1

3.2

3.2

3.1

3.1

192.7

63.9

256.6

187.8

43.9

231.7

0.5

4.7

5.2

(6.7)

3.4

(3.3)

0.3

(0.3)

1.0

(1.0)

0.8

4.4

5.2

(5.7)

2.4

(3.3)

10

0.1

0.4

0.5

0.9

0.3

1.2

16

(0.5)

(0.5)

(0.3)

(0.3)

Net movement in funds

0.4

4.8

5.2

(5.1)

2.7

(2.4)

Total funds at 1 January

90.2

39.6

129.8

95.3

36.9

132.2

90.6

44.4

135.0

90.2

39.6

129.8

Costs of charitable activities


UK
Support in emergencies
Refugee support
First aid and humanitarian education
Independent living
International
Total resources expended on
charitable activities

Net incoming / (outgoing) resources


before transfers
7, 8

Net incoming / (outgoing) resources


before recognised gains and losses

Total funds at 31 December

2013
Charity
m

9
10

61.1
19.7

63.0
19.2

59.5
19.7

63.0
19.2

80.8

82.2

79.2

82.2

4.0
34.6
27.8
4.9

3.3
32.0
29.1
3.7

3.9
35.6
27.8
4.1

3.2
32.7
29.1
3.1

71.3

68.1

71.4

68.1

(16.2)

(17.6)

(16.2)

(17.6)

55.1

50.5

55.2

50.5

135.9

132.7

134.4

132.7

(0.3)
(1.6)

(0.3)
(3.4)

(0.3)
(1.6)

(0.3)
(3.4)

134.0

129.0

132.5

129.0

1.0

0.8

1.0

0.8

135.0

129.8

133.5

129.8

11
12
10

Current liabilities
Creditors: amounts falling due within one year

13

Total assets less current liabilities


Creditors: amounts falling due in more than one year
Provision for liabilities and charges

14

Defined benefit pension scheme surplus

16

Net assets
Funds:

Governance costs

Gains on fixed asset investments


Actuarial losses on defined benefit
pension schemes

2014
Charity
m

Net assets before pension scheme surplus

Costs of generating funds


Voluntary income
Retail
Total resources expended on generating funds

Transfers between funds

Current assets
Stocks
Debtors
Investments
Cash at bank and in hand

2013
Group
m

Net current assets

Other incoming resources


Miscellaneous income
Net gains / (losses) on disposal of tangible
fixed assets

Total resources expended

Fixed assets
Tangible fixed assets
Investments

Notes

2014
Group
m

7, 8

Restricted funds

44.4

39.6

42.9

39.6

Unrestricted funds held as tangible fixed assets


Defined benefit pension scheme fund
Free reserves

8
8
8

54.0
1.0
35.6

57.2
0.8
32.2

54.0
1.0
35.6

57.2
0.8
32.2

90.6

90.2

90.6

90.2

135.0

129.8

133.5

129.8

Unrestricted funds
Total funds

Approved by the board of trustees on 24 March 2015 and signed on its behalf by

David Bernstein
Chair, board of trustees
24 March 2015

David Howell
Chair, finance, risk and audit committee
24 March 2015

All the activities relate to continuing operations. For the parent charity, total incoming resources for the year are 259.3m (2013: 227.5m),
total resources expended are 255.6m (2013: 230.8m) and net movement in funds is a surplus of 3.7m (2013: deficit of 2.4m).

44 / 45

Report and accounts 2014


Accounts

Consolidated cash flow statement


For the year ended 31 December 2014

Notes to the consolidated financial statements


For the year ended 31 December 2014
2014
m

2013
m

Reconciliation of net outgoing resources to net cash inflow / (outflow) from operating activities
Net incoming / (outgoing) resources
Depreciation charge
Net gains on disposal of tangible fixed assets
(Increase) / decrease in stocks
Increase in debtors
(Decrease) / increase in creditors
(Decrease) / increase in provisions for liabilities and charges
Net charges for defined benefit pension scheme
Donation of net assets from Bermuda Red Cross Charitable Trust
Foreign currency gain on net assets of Bermuda Red Cross Charitable Trust

5.2
5.5
(6.1)
(0.7)
(2.6)
(1.4)
(1.8)
(0.7)
(1.4)
(0.1)

(3.3)
6.9
(2.3)
0.7
(2.0)
0.2
1.2
(0.6)
-

Net cash (outflow) / inflow from operating activities

(4.1)

0.8

Net cash (outflow) / inflow from operating activities

(4.1)

0.8

36.1
(19.0)

17.1

8.2
(4.2)

3.3
(6.7)

4.0

(3.4)

1.3

(17.3)

1.2

(2.8)

Notes

Financial investment
Sale of fixed asset investments
Purchase of fixed asset investments

Capital expenditure
Sale of tangible fixed assets
Purchase of tangible fixed assets

Decrease / (increase) in current asset investments


Increase / (decrease) in cash

18

Reconciliation of net funds to movement in short-term funds less borrowing


Increase / (decrease) in cash
(Decrease) / increase in current asset investments

Net short-term funds less borrowing at 1 January


Net short-term funds less borrowing at 31 December

18

1.2
(1.3)

(2.8)
17.3

(0.1)

14.5

32.5

18.0

32.4

32.5

1. Accounting policies
(a) Scope and basis of the financial statements
The consolidated financial statements have been prepared
under the historical cost convention, as modified by the
revaluation of investments at market value, and are in accordance
with Accounting and Reporting by Charities: Statement of
Recommended Practice (Revised 2005) (the SORP), applicable
accounting standards in the United Kingdom and the reporting
requirements of the Charities Act 2011.
The results and balance sheet of the British Red Cross
subsidiary, Britcross Limited, have been consolidated on a line by
line basis. Britcross Limited prepares accounts to 31 December.
On 29 January 2014, the Bermuda Red Cross Charitable Trust
amended its constitution bringing it under the control of the
British Red Cross. The Trust has accordingly been accounted
for as a subsidiary undertaking in the financial statements. Net
assets were measured at fair value after being aligned to British
Red Cross accounting policies. The resulting gain has been
accounted for as a gift and included in voluntary income. The
consolidated financial statements include the results of the Trust
from the date that control passed and are consolidated on a line
by line basis. See note 6 for further details.
A separate statement of financial activities has not been
presented for the charity alone as this is not considered to be
materially different from the consolidated statement of financial
activities (SOFA).
The financial statements incorporate the results of all material
activities overseas where the British Red Cross has operational
responsibility. The results and net assets of Red Cross operations
in eight British Overseas Branches have been included in the
financial statements.

Gifts donated for resale are included as income when they are
sold. Donated assets and services are included at the value
to the British Red Cross where this can be reliably quantified.
Donated services from our volunteers are not included within the
financial statements.
(d) Resources expended and basis of allocation of cost
All expenditure is accounted for on an accruals basis.
Direct costs are those specifically related to producing the output
of an activity, for example the costs incurred in direct contact with
beneficiaries.
Support costs are those which provide indirect support to frontline output provision examples are central finance, human
resources and management information services. Support costs
not attributable to a single activity have been allocated on a basis
consistent with identified cost drivers for that cost category such
as staff head count, floor space and expenditure.
Governance costs relate to the direct running of the charity,
allowing the charity to operate and generate the information
required for public accountability. They include the costs of
subscriptions related to membership of the International Red
Cross and Red Crescent Movement, as well as the costs of
trustee meetings and internal and external audits.
(e) Tangible fixed assets and depreciation
All tangible fixed assets costing more than 1,000 are capitalised
and included at cost, including any incidental expenses of
acquisition and irrecoverable VAT. Depreciation is provided on a
straight-line basis over their useful economic lives as follows:Freehold properties

50 years

Leasehold properties

the shorter of the term of the


lease and 50 years

Freehold premises
improvements

ten years

Leasehold premises
improvements

the shorter of the term of the


lease and ten years

Ambulances

the shorter of useful life and


seven years

Other vehicles

the shorter of useful life and five


years

(c) Incoming resources


All income is accounted for when the British Red Cross has
entitlement to the funds, the amount can be quantified and there
is certainty of receipt. Where income is received in advance of
providing goods and/or services, it is deferred until the British
Red Cross becomes entitled to that income.

Equipment and furniture

five years

Computer equipment and


software

between two and five years

Freehold land

Nil

Unless there is evidence of uncertainty of receipt, residuary


legacies are recognised from the date of probate where a
reliable estimate of income can be made. Income from will or
reversionary trusts is not recognised until the life interest has
passed away. Income from pecuniary legacies is recognised
upon notification.

Assets in course of
construction

Nil

(b) Fund accounting


Unrestricted funds are available for use at the discretion of the
trustees in furtherance of the general charitable objectives. A
pension reserve is included within unrestricted funds to reflect the
pension surplus.
Restricted funds are donated for either a particular geographical
area or purpose, the use of which is restricted to that area
or purpose. Such donations are principally for international
purposes.

Disasters Emergency Committee (DEC) appeal income is


recognised to the extent that resources have been committed on
programmes funded through the DEC appeals.

46 / 47

Report and accounts 2014


Accounts

Notes to the consolidated financial statements


For the year ended 31 December 2014
(f) Pensions
Defined benefit pension schemes
Pension assets and liabilities are recorded in line with Financial
Reporting Standard 17: Retirement Benefits (FRS 17), with
scheme valuations undertaken by independent actuaries. FRS 17
measures the value of pension assets and liabilities at the balance
sheet date and determines the benefits accrued in the year and
the interest on assets and liabilities.
Current service costs, together with the scheme interest cost
less the expected return on the scheme assets for the year, are
allocated to relevant expenditure headings within the SOFA.
Scheme assets are measured at fair value at the balance sheet
date. Scheme liabilities are measured on an actuarial basis at
the balance sheet date using the projected unit method and
discounted at a rate equivalent to the current rate of return on
a high-quality corporate bond of equivalent term to the scheme
liabilities.
The change in value of assets and liabilities arising from asset
valuation, changes in benefits, actuarial assumptions, or change
in the level of deficit attributable to members is recognised in
the consolidated statement of financial activities within actuarial
gains/losses on defined benefit pension schemes.
The resulting defined benefit asset or liability is presented
separately on the face of the balance sheet. The British Red
Cross recognises assets for its defined benefit pension schemes
to the extent that they are considered recoverable with reference
to expected future current service costs for active scheme
members.
Defined contribution pension schemes
Pension costs in respect of defined contribution schemes are
charged to the SOFA for the period in which they are payable.
(g) Investments
Investments are stated at market value at the balance sheet
date and the consolidated statement of financial activities shows
net investment gains and losses arising from revaluation of the
investment portfolio and disposals during the year.
(h) Stocks
Stocks are stated at the lower of cost and net realisable value.
Provision is made for obsolete, slow-moving or defective stock
where appropriate. Items donated either for resale or distribution
are not included in the financial statements until they are sold
or distributed. Emergency stocks held for disaster response are
transferred from stock to resources expended when issued from
the warehouse.
(i) Value added tax
Irrecoverable value added tax is allocated to the category of
expenditure to which it relates.

(j) Provisions
Provisions are recognised when the British Red Cross has a legal
or constructive financial obligation, that can be reliably estimated
and for which there is an expectation that payment will be made.
(k) Operating leases
Rentals under operating leases are charged on a straight-line
basis over the lease terms, 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, except where the period to the review date on
which the rent is first expected to be adjusted to the prevailing
market rate is shorter than the full lease term, in which case the
shorter period is used.
(l) Foreign currencies
The British Red Cross uses forward exchange contracts to hedge
some of its known foreign exchange exposure. Transactions in
foreign currencies are recorded at the rate of exchange prevailing
at the date of the transaction, except where a forward contract is
in place, in which case the rate specified in the contract is used.
Monetary assets and liabilities are translated into sterling at the
exchange rate ruling on the balance sheet date, except where
a forward contract is in place, in which case the relevant asset/
liability is translated at the rate contained in the contract.
Foreign exchange gains are recognised as other income and
foreign exchange losses are recognised in the consolidated
statement of financial activities within the relevant charitable
activity expenditure for the period in which they are incurred.
(m) Programme commitments
The British Red Cross regularly pledges support to programmes
led by the International Federation of Red Cross and Red
Crescent Societies (IFRC), International Committee of the Red
Cross (ICRC) or other National Societies. Where full payment of
the pledges is contingent on the outcome of British Red Cross
reviews of the programmes, these programme commitments are
contingent liabilities and therefore not recognised on the balance
sheet.

2. Voluntary income

Regular giving
Public donations, appeals and fundraising
Donations to services
Gift aid
Legacies
Disasters Emergency Committee appeals
Donation of net assets from Bermuda Red Cross
Charitable Trust
Total

2014
Total Unrestricted
m
m

Restricted
m

2013
Total
m

48.1
20.6
2.4
12.9
21.2
-

0.1
20.1
1.4
0.6
0.9

48.2
40.7
2.4
14.3
21.8
0.9

1.4

140.5

105.2

23.1

128.3

Unrestricted
m

Restricted
m

50.2
20.9
2.3
13.1
21.2
-

0.9
21.4
1.5
1.0
6.6

51.1
42.3
2.3
14.6
22.2
6.6

1.4

107.7

32.8

Legacy income is not recognised until the British Red Cross has entitlement to the funds, the amount can be quantified and there is
certainty of receipt. The estimated value of legacies, which have been notified, but not recognised at 31 December 2014 was 8.7m
(2013: 7.7m) of which 6.1m (2013: 5.9m) are assets bequeathed to the British Red Cross, but subject to life tenancy.
Disasters Emergency Committee (DEC) appeal income is recognised to the extent that resources have been committed on programmes
funded through the DEC appeals. According to our agreed allocation, the value of DEC appeal income not drawn down or accrued for at
31 December 2014 was 0.5m (2013: 6.8m).

3. Incoming resources from charitable activities

UK
Support in emergencies
Refugee support
First aid and humanitarian education
Independent living - Care and support programmes
Independent living - Medical equipment services

Contracts
and fees
m

Grants
m

2014
Total
m

6.6
15.9
15.8
9.0

0.2
1.0
0.4
1.7
0.3

6.8
1.0
16.3
17.5
9.3

4.3
15.6
13.7
8.9

0.1
0.6
0.5
1.8
0.1

4.4
0.6
16.1
15.5
9.0

47.3

3.6

50.9

42.5

3.1

45.6

1.7

32.7

34.4

1.5

22.0

23.5

49.0

36.3

85.3

44.0

25.1

69.1

International
Total

Contracts
and fees
m

Grants
m

2013
Total
m

International grant income includes grants from the UK Governments Department for International Development (DFID)
totalling 31.5m (2013: 20.6m):
>> 18.6m from DFID for emergency response programmes in
countries including Sierra Leone, Liberia, Guinea and the Philippines

>> 3.0m from DFID to support long-term programmes in countries


including Nepal and British Overseas Territories

>> 8.0m received as part of the International Federation of Red


Cross and Red Crescent Societies (IFRC) Institutional Strategy
Agreement with DFID

>> 1.6m as part of British Red Cross Programme Partnership


Arrangement (PPA) with DFID
>> 0.3m to support an IFRC research project.

48 / 49

Report and accounts 2014


Accounts

Notes to the consolidated financial statements


For the year ended 31 December 2014
4. Resources expended

Costs of generating funds


Voluntary income
Retail

Grants
Direct
Costs
m

Grants
m

Support
Costs
m

2014
Total
m

2013
Total
m

48.1
22.3

1.7
0.6

49.8
22.9

49.4
24.1

70.4

2.3

72.7

73.5

22.2
7.0
23.1
30.3
14.1

0.1
-

1.7
0.6
2.5
3.8
1.0

23.9
7.7
25.6
34.1
15.1

21.8
6.7
25.6
32.5
14.9

96.7

0.1

9.6

106.4

101.5

21.7

51.2

1.4

74.3

53.6

118.4

51.3

11.0

180.7

155.1

1.8
0.9
0.1
0.3

0.1

1.8
0.9
0.1
0.4

2.0
0.8
0.1
0.2

3.1

0.1

3.2

3.1

191.9

51.3

13.4

256.6

231.7

Charitable activities
UK
Support in emergencies
Refugee support
First aid and humanitarian education
Independent living - Care and support programme
Independent living - Medical equipment services

International

Governance costs
Subscriptions to Federation
Staff
Fees to auditors for audit of financial statements
Other

Total

The basis of allocation of support costs is described in note 1(d) and further analysis is provided in Note 5. It is not appropriate to
split support costs between direct costs and grants due to the dual role played by programme support functions.

Grant recipients

2014
Total
m

Purpose

International Federation of Red Cross and Red Crescent Societies (IFRC)


IFRC
Ebola outbreak
IFRC
DFID Institutional Strategy with Federation
IFRC
Typhoon Haiyan
IFRC
Syria and region
IFRC
Various

16.5
8.0
3.4
2.9
4.6
35.4

International Committee of the Red Cross (ICRC)


ICRC
Gaza and Israel
ICRC
Typhoon Haiyan
ICRC
Various

1.0
0.5
0.6
2.1

Red Cross National Societies


Philippine Red Cross
South African Red Cross
Nepal Red Cross
Kenya Red Cross
Sierra Leone Red Cross
Lesotho Red Cross
Lebanese Red Cross
Bangladesh Red Cross
Other Red Cross National Societies

2.5
1.7
1.4
1.0
0.9
0.7
0.6
0.6
4.1

Typhoon Haiyan
HIV Phase II
Earthquake preparedness
East Africa food crisis
Community resilience and organisational development
HIV and livelihoods activities
Cash transfer programmes
Integrated community resilience
Various

13.5
Other grants

0.3

Various

51.3

Our total resources expended includes irrecoverable VAT of 3.1m (2013: 2.8m).

5. Support costs by activity


Cost of
generating Support in
funds emergencies
m
m

First aid and


Refugee humanitarian Independent
support education
living International Governance
m
m
m
m
m

2014
Total
m

2013
Total
m

Finance
Human resources
Central facilities
Management
information services
Central management

0.9
0.2
0.3

0.2
0.4
0.4

0.1
0.1
0.1

0.3
0.5
0.5

0.4
1.0
1.0

0.9
0.1
0.1

2.8
2.3
2.4

2.7
2.1
2.3

0.8
0.1

0.7
-

0.3
-

1.2
-

2.3
0.1

0.2
0.1

0.1
-

5.6
0.3

4.8
0.4

Total

2.3

1.7

0.6

2.5

4.8

1.4

0.1

13.4

12.3

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

50 / 51

Report and accounts 2014


Accounts

Notes to the consolidated financial statements


For the year ended 31 December 2014
6. Subsidiaries

7. Restricted funds

Britcross Limited
Britcross Limited, the British Red Cross wholly owned trading subsidiary incorporated in the United Kingdom, engages in the
sale of cards and gifts as well as receiving corporate sponsorship in aid of the British Red Cross.
The income and expenditure of Britcross Limited included within the consolidated statement of financial activities are:

Income
Expenditure

2014
m

2013
m

1.6
(0.9)

1.4
(0.9)

0.7

0.5

Net income donated to British Red Cross


The assets and liabilities of Britcross Limited consolidated within the balance sheet are:

Current assets
Current liabilities

2014
m

2013
m

1.0
(1.0)

0.7
(0.7)

Net assets

Bermuda Red Cross Charitable Trust


On 29 January 2014, the Bermuda Red Cross Charitable Trust amended its constitution, bringing it under the control of the British Red
Cross. The table below shows the fair value of the Bermuda Red Cross Charitable Trusts assets brought into the financial statements of
the British Red Cross, as at that date.
The values shown in the Bermuda Red Cross Charitable Trusts records have been reviewed to ensure alignment with the British Red
Cross accounting policies and to arrive at a fair value on transfer to the British Red Cross.
Book value at
29 January 2014
m
Net assets

Fair value
Fair value at
adjustment 29 January 2014
m
m

1.1

0.3

Donation of net assets from Bermuda Red Cross Charitable Trust

Group
Total UK restricted funds

Balance 1
January
2014
m
10.0

Income
m
8.4

The net assets brought in at fair value were 1.4m and this has been accounted for as a gift and included in voluntary income in the
consolidated statement of financial activities. This is represented by a surplus of restricted income of 1.4m, which is not available for
general use.
The income and expenditure of the Bermuda Red Cross Charitable Trust included within the consolidated statement of financial activities
are:
2014
2013
m
m
Income
Expenditure

0.2
(0.1)

Net income

0.1

2014
m

2013
m

1.6
(0.1)

1.5

Transfers
m
(0.1)

Balance 31
December
2014
m
12.0

Ebola outbreak
Typhoon Haiyan
Syria and region
DFID Institutional Strategy with
Federation
Other international restricted funds

7.5
8.0

21.8
9.3
6.5

(17.5)
(9.1)
(8.8)

0.1
0.1

4.3
7.8
5.8

12.1

8.0
14.0

(8.0)
(13.6)

0.1

(0.8)

11.8

Total international restricted funds

27.6

59.6

(57.0)

0.3

(0.8)

29.7

2.0

0.6

(0.5)

0.6

2.7

39.6

68.6

(63.9)

0.4

(0.3)

44.4

Disaster Fund
Total restricted funds

Expenditure plans have been agreed for all material restricted funds. Funds are held in appropriate asset categories in accordance
with planned usage.
UK restricted funds
UK restricted funds include:
>> 4.2m of properties and other tangible fixed assets held for
restricted purposes
>> a variety of local, national and European funding sources to
deliver projects over the next 2-3 years
>> legacies with a geographical and/or service restriction.
The balance of UK restricted funds is held for the provision of
locally agreed services.

1.4
1.4

Expenditure
m
(6.4)

Net
investment
gains
m
0.1

International restricted funds


Significant programmes of work are planned for the disbursement
of international restricted fund balances as at 31 December 2014.
Other international restricted funds include:
>> 3.1m for the second phase of our HIV and AIDS prevention
programme in South Africa
>> 2.2m represented by net assets of the Overseas Branches
>> 0.4m deficit for the DFID Uganda Reducing Risk &
Strengthening Support programme.

Disaster Fund
The Disaster Fund allows us to prepare for and respond to
humanitarian disasters abroad and in the UK. We fundraise
specifically for the Disaster Fund and, as stated on emergency
appeal materials, it can also contain funds donated to
emergency appeals where we raise more than can be reasonably
and efficiently spent on that specific response. In 2014, 0.6m
was transferred to the Disaster Fund from other international
restricted projects.
Charity
Charity restricted funds for 2014 are the same as above, except
they exclude 1.6m of income and 0.1m of expenditure in other
international restricted funds, representing the donation of net
assets and results of the Bermuda Red Cross Charitable Trust.
Total restricted funds for the charity as at 31 December 2014 are
42.9m (2013: 39.6m).

The assets and liabilities of the Bermuda Red Cross Charitable Trust consolidated within the balance sheet are:

Fixed assets
Current liabilities
Net assets

The fixed assets above comprise land and buildings and were valued on a market value basis by Suzanne Stones BSc. (Hons),
PGdipSurv, MRICS, R. Surv., CMCA, Chartered Valuation Surveyor, for Bermuda Realty Company Limited, independent property
valuation consultants based in Bermuda, at 2.5m Bermudian dollars, which was equivalent to 1.6m as at 31 December 2014.

52 / 53

Report and accounts 2014


Accounts

Notes to the consolidated financial statements


For the year ended 31 December 2014
10. Investments

8. Unrestricted funds

Balance 1
January
2014
m

Net
investment
Income Expenditure
gains
m
m
m

Actuarial
losses
on defined
benefit
pension
schemes
m

Balance 31
December
Transfers
2014
m
m

Group
Unrestricted funds held as tangible fixed assets
Defined benefit pension scheme fund
Free reserves

57.2
0.8
32.2

193.2

(4.9)
0.2
(188.0)

0.1

(0.5)
-

1.7
0.5
(1.9)

54.0
1.0
35.6

Total unrestricted funds

90.2

193.2

(192.7)

0.1

(0.5)

0.3

90.6

Fixed asset
investments
m

Current asset
investments
m

Total
m

Market value at 1 January 2014


Additions at cost
Disposals at market value
Net investment gains in the year

19.2
0.5

29.1
15.0
(16.3)
-

48.3
15.0
(16.3)
0.5

Market value at 31 December 2014

19.7

27.8

47.5

Cost at 31 December 2014

19.0

27.8

46.8

Asset
class

Market value
2014
m

Market value
2013
m

Unit trusts
Unit trusts

12.6
7.1

12.1
7.1

19.7

19.2

4.7
23.1

14.0
15.1

27.8

29.1

47.5

48.3

Group and charity

Charity
Unrestricted funds held as tangible fixed assets
Defined benefit pension scheme fund
Free reserves

57.2
0.8
32.2

192.3

(4.9)
0.2
(187.1)

0.1

(0.5)
-

1.7
0.5
(1.9)

54.0
1.0
35.6

Fixed asset investments

Total unrestricted funds

90.2

192.3

(191.8)

0.1

(0.5)

0.3

90.6

UK investments
BlackRock Dynamic Diversified Growth Fund
BlackRock Absolute Return Bond Fund
Current asset investments

9. Tangible fixed assets


Group
Cost

Freehold
property
m

Vehicles, Assets in the


Leasehold
equipment
course of
property and furniture construction
m
m
m

Total
m

At 1 January 2014
Completions
Additions
Assets of Bermuda Red Cross Charitable Trust
Disposals

48.9
0.4
1.6
(2.8)

37.6
0.1
1.1
(0.8)

49.8
0.5
2.3
(1.3)

1.6
(0.6)
0.4
-

137.9
4.2
1.6
(4.9)

At 31 December 2014

48.1

38.0

51.3

1.4

138.8

At 1 January 2014
Charge
Disposals

16.6
1.3
(1.0)

15.3
1.4
(0.4)

43.0
2.8
(1.3)

At 31 December 2014

16.9

16.3

44.5

77.7

Net book value


At 31 December 2014

31.2

21.7

6.8

1.4

61.1

At 31 December 2013

32.3

22.3

6.8

1.6

63.0

UK investments
Royal Bank of Scotland Global Treasury Fund
Goldman Sachs Reserves Fund
Deposits

Total

11. Stock
2014
Group
m

2013
Group
m

2014
Charity
m

2013
Charity
m

International emergency stock


Medical equipment services stock
Cards and gifts stock
Other stock

2.6
0.9
0.1
0.4

1.8
0.7
0.1
0.7

2.6
0.9
0.4

1.8
0.7
0.7

Total

4.0

3.3

3.9

3.2

Accumulated depreciation
-

74.9
5.5
(2.7)

Bank deposits
Bank deposits
Bank deposits

Charity
Charity tangible fixed assets are the same as above for all categories, except 1.6m of freehold property owned by Bermuda Red Cross
Charitable Trust, which is excluded. For the charity, total cost at 31 December 2014 is 137.2m (2013: 137.9m) and total net book
value at 31 December 2014 is 59.5m (2013: 63.0m).

54 / 55

Report and accounts 2014


Accounts

Notes to the consolidated financial statements


For the year ended 31 December 2014
12. Debtors

15. Staff costs and trustee expenses


2014
Group
m

2013
Group
m

2014
Charity
m

2013
Charity
m

Trade debtors
Accrued income
Other debtors
Prepayments
Tax recoverable
Legacies receivable
Amounts due from subsidiaries

5.8
6.1
1.1
5.3
4.9
11.4
-

4.5
4.0
1.2
3.9
6.0
12.4
-

5.8
6.0
1.1
5.3
4.9
11.4
1.1

4.5
4.0
1.2
3.9
6.0
12.4
0.7

Total

34.6

32.0

35.6

32.7

All amounts shown under debtors are receivable within one year.

13. Creditors: amounts falling due within one year


Group and charity
Trade creditors
Accruals
Other creditors
Deferred income
Taxes and social security costs
Total

The number of employees whose emoluments, as defined for taxation purposes,


(basic pay, vehicle and medical insurance benefits) amounted to over 60,000 in the
year were as follows:
60,001 - 70,000
70,001 - 80,000
80,001 - 90,000
90,001 - 100,000
100,001 - 110,000
110,001 - 120,000
120,001 - 130,000
150,001 - 160,000
200,001 - 210,000

2013
m

79.2
6.6
2.7

74.1
6.3
2.9

88.5

83.3

2014

2013

21
5
5
7
2
2
1
1
-

19
1
6
3
2
2
1
1

2013
m

3.2
7.6
1.4
2.2
1.8

2.0
10.8
1.0
2.1
1.7

Six (six in 2013) of the above employees have retirement benefits accruing to them under defined benefit pension schemes.
The total cost of the contributions to these defined benefit schemes made by the British Red Cross for these employees was
99,000 (2013: 96,000).

16.2

17.6

Thirty-five (27 in 2013) of the above employees are members of a defined contribution scheme. The total cost of the contributions
to this scheme made by the British Red Cross for these employees was 161,000 (2013: 128,000).

The average number of full time equivalent staff employed by the British Red Cross during
the year was as follows:

14. Provisions for liabilities and charges


Rehabilitation
commitments
m

Leasehold
dilapidations
m

Total
m

1.0
(0.6)
-

2.4
(0.3)
(0.9)

3.4
(0.9)
(0.9)

At 31 December 2014

0.4

1.2

1.6

Amounts are expected to be incurred:


- within one year
- beyond one year

0.4
-

0.2
1.0

0.6
1.0

0.4

1.2

1.6

At 1 January 2014
Payments during the year
Amounts released during the year

Salary costs
National insurance costs
Pensions costs

2014
m

2014
m

All deferred income as at 31 December 2013 was recognised during 2014 and all deferred income as at 31 December 2014 was
deferred during the year.

Group and charity

Total staff costs (including casual staff) for the year were as follows:

2014

2013

In the UK
Fundraising
Retail
UK services
First aid services
International services
Other

215
593
1,628
463
95
311

209
568
1,528
447
94
292

Overseas
International services

53

62

Total employed by FTE

3,358

3,200

Total employed by headcount

3,935

3,731

Rehabilitation commitments relate to urban construction for the Haiti Earthquake recovery programme.
Leasehold dilapidations relate to properties where the British Red Cross has a legal responsibility as tenant for such costs.

56 / 57

Report and accounts 2014


Accounts

Notes to the consolidated financial statements


For the year ended 31 December 2014
15. Staff costs and trustee expenses (continued)

16. Pensions

The average number of volunteers working for the British Red Cross
during year was as follows:

New British Red Cross staff are entitled to join the British Red Cross Group Personal Pension Plan provided by Legal & General.
Staff had previously been entitled to join the British Red Cross Pension Fund (UK Office scheme), Scottish Branch British Red
Cross Society Retirement Benefits Scheme (Scottish scheme) or The Pensions Trusts Growth Plan. These three schemes are
all closed to new entrants.

In the UK
Fundraising
Retail
UK services
First aid services
International services
Total

2014

2013

2,789
6,420
9,167
5,355
255

2,787
7,347
10,537
6,282
261

23,986

27,214

The apparent reduction in the number of volunteers reflects a changed definition to focus on those volunteers who are available for
deployment having completed their training pathways or whose training is underway. It does not include volunteers who are no longer
available for service.

Trustees expenses:
Expenses incurred by trustees and reimbursed by the British Red Cross
Expenses incurred by the British Red Cross on behalf of trustees
Trustees' indemnity insurance cover cost

Number of trustees receiving expenses


Trustees expenses are for travel and accommodation costs.
None of the trustees received any remuneration during the year (2013: nil).

2014
000

2013
000

10
23
16

17
19
17

2014

2013

16

17

UK Office and Scottish defined benefit pension schemes


The assets of these pension schemes are held in separate trustee-administered funds. The schemes are subject to triennial
valuations with the last full valuation being carried out as at 31 December 2013 for the UK Office scheme and 1 January 2012 for
the Scottish scheme. These valuations were updated at 31 December 2013 and 2014 by independent actuaries on a Financial
Reporting Standard 17 Retirement Benefits (FRS 17) basis.
UK Office
scheme
m
(0.2)

Scottish
scheme
m
-

2014
Total
m
(0.2)

2013
Total
m
(0.3)

Interest cost on scheme liabilities


Expected return on plan assets
Net finance credit

(1.0)
1.2
0.2

(0.4)
0.6
0.2

(1.4)
1.8
0.4

(1.4)
1.6
0.2

Actual return less expected return on pension assets


Other changes in assumption underlying the present value of scheme liabilities
Total actuarial gain / (loss)

3.4
(2.8)
0.6

0.9
(1.2)
(0.3)

4.3
(4.0)
0.3

1.4
0.8
2.2

Movement in restriction of surplus

(0.8)

(0.8)

(2.5)

Net actuarial (loss) / gain recognised

(0.2)

(0.3)

(0.5)

(0.3)

The amounts charged to statement of financial activities are:


Current service cost

The current service cost will change as the members of the schemes approach retirement because the schemes are closed to
new members.
The latest triennial valuation for the Scottish scheme as at 1 January 2012 showed a deficit of 3.1m. A pension deficit recovery
plan is in place in respect of the Scottish scheme, which aims to eliminate the ongoing funding deficit by 2020. The additional
employer contributions required from the British Red Cross as part of this recovery plan are 0.4m per annum and payments
started in 2013. The British Red Cross expects to contribute 22.7 per cent per annum as a percentage of members salaries.

The amounts recognised in the balance sheet are:


Fair value of plan assets
Present value of scheme obligations
Restriction of scheme surplus
Net surplus

UK Office
scheme
m

Scottish
scheme
m

2014
Total
m

2013
Total
m

31.2
(26.3)
(4.6)

10.3
(9.6)
-

41.5
(35.9)
(4.6)

35.7
(31.3)
(3.6)

0.3

0.7

1.0

0.8

The British Red Cross has recognised the net scheme surpluses to the extent that it is considered recoverable through the future
service cost of the remaining members.

58 / 59

Report and accounts 2014


Accounts

Notes to the consolidated financial statements


For the year ended 31 December 2014
16. Pensions (continued)
Changes in present value of scheme obligation during the year:

UK Office scheme
2014
2013
m
m

Scottish scheme
2014
2013
m
m

At 1 January

23.1

23.1

8.2

8.2

Service cost
Interest cost
Member contributions
Benefits paid
Actuarial loss / (gain) due to changes in other assumptions
Actuarial (gain) / loss due to experience

0.2
1.0
0.1
(0.9)
3.1
(0.3)

0.2
1.0
0.1
(0.8)
(0.5)
-

0.4
0.1
(0.3)
(0.2)
1.4

0.1
0.4
(0.2)
(0.2)
(0.1)

At 31 December

26.3

23.1

9.6

8.2

Change in the value of plan assets during the year:

UK Office scheme
2014
2013
m
m

Scottish scheme
2014
2013
m
m

At 1 January

27.2

25.5

8.5

7.4

Expected return
Employer contributions
Member contributions
Benefits paid
Actuarial gain on plan assets

1.2
0.1
0.1
(0.8)
3.4

1.2
0.1
0.1
(0.8)
1.1

0.6
0.5
0.1
(0.3)
0.9

0.5
0.5
(0.2)
0.3

At 31 December

31.2

27.2

10.3

8.5

The British Red Cross expects to make employer contributions in 2014 of 0.1m for the UK Office scheme and 0.5m for the
Scottish scheme.
The major categories of plan assets as percentage of total plan assets are:
Equities
Bonds
Cash

Actual return on plan assets in the year

UK Office scheme
2014
2013
40%
44%
59%
55%
1%
1%
100%
100%

Scottish scheme
2014
2013
57%
61%
43%
39%
0%
0%
100%
100%

UK Office scheme
2014
2013
4.7
2.2

Scottish scheme
2014
2013
1.4
0.7

Principal actuarial assumptions at the balance sheet date in respect of both schemes were:
Discount rate
Consumer price inflation (CPI)
Salary increases
UK Office scheme pension increases
Capped at 5.0%
Capped at 3.0%
Capped at 2.5%
Scottish scheme pension increases
Pre-1997 increases
Between 1997 and 2005 increases
Post-2005 increases

2014
3.4% pa
2.4% pa
2.4% pa

2013
4.7% pa
3.0% pa
3.0% pa

2.4% pa
2.2% pa
2.0% pa

3.0% pa
2.5% pa
2.2% pa

0.0% pa
2.4% pa
2.0% pa

0.0% pa
3.0% pa
2.2% pa

Mortality assumptions in respect of both schemes adopted at the year end imply the following life
expectancy at 65:
Pensioners: male
Pensioners: female
Non-pensioners: male
Non-pensioners: female

2014
Years
22.6
25.1
24.8
27.4

2013
Years
22.9
25.3
25.1
27.6

UK Office scheme
2014
m

2013
m

2012
m

2011
m

2010
m

(26.3)
31.2
4.9

(23.1)
27.2
4.1

(23.1)
25.5
2.4

(21.1)
25.0
3.9

(19.8)
23.0
3.2

Restriction of surplus

(4.6)

(3.6)

(1.1)

(2.1)

(1.5)

Reported surplus

0.3

0.5

1.3

1.8

1.7

Experience gains
on liabilities
on assets

0.3
3.4

1.1

0.4
0.7

1.1

History for current and previous periods:


Present value of scheme obligations
Fair value of plan assets
Surplus

Scottish scheme
History for current and previous periods:
Present value of scheme obligations
Fair value of plan assets
Surplus / (deficit)
Experience gains / (losses)
on liabilities
on assets

2014
m

2013
m

2012
m

2011
m

2010
m

(9.6)
10.3
0.7

(8.2)
8.5
0.3

(8.2)
7.4
(0.8)

(7.6)
6.5
(1.1)

(6.4)
5.8
(0.6)

0.2
0.8

0.1
0.3

0.3

(0.5)
-

0.7
0.2

Other schemes
The British Red Cross also contributes to the British Red Cross Group Personal Pension Plan and other contribution schemes
for certain employees. In 2014 the total cost of these contributions was 2.8m (2013: 2.6m) and the balance outstanding at 31
December 2014 was 0.3m (2013: 0.3m).
Staff were able to join The Pensions Trusts Growth Plan until April 2007. The Pensions Trusts Growth Plan is a multi-employer defined
benefit pension plan. The assets of the scheme are co-mingled for investment purposes and as a result it is not possible to either
break down scheme assets or analyse the ongoing funding deficit by individual employer. Accordingly, due to the nature of the plan,
the accounting charge for the year under FRS 17 represents only the employer contribution payable.
There is a contingent liability in the event that the British Red Cross were to withdraw its membership of the Pensions Trusts Growth
Plan. The Pensions Trusts Growth Plans actuaries valued the withdrawal liability at 5.4m as at 30 September 2013. This valuation
has been rolled forward, assuming actuarial assumptions and membership are consistent, to 31 December 2014 resulting in an
estimated 6.4m contingent liability (2013: 5.6m). The results of the Growth Plan scheme valuation as at 30 September 2011 show
a deficit of 148m. A recovery plan has been established which aims to eliminate the funding deficit over a period of 10 years from
April 2013. The additional employer contributions required from the British Red Cross as part of this recovery plan are 0.3m per
annum. The British Red Cross expects to contribute 1% per annum as a percentage of members salaries.
The British Red Cross and the Order of St John were formerly jointly liable for the pension liabilities of the Joint Committee of the
Order of St John of Jerusalem and British Red Cross Society (Joint Committee). The Joint Committee withdrew from the scheme
in January 2013, when the withdrawal liability, and the British Red Cross share of that liability, were estimated at 2.1m and 0.5m
respectively. The British Red Cross settled its share during 2013. The subsequent implementation of the Pensions Act 2011 has
resulted in a possible change to the basis of calculation of the withdrawal liability and the British Red Cross share of that liability which
may result in an additional 0.4m becoming payable by the British Red Cross. Discussions are ongoing with relevant authorities with a
view to concluding the matter.

60 / 61

Report and accounts 2014


Accounts

Notes to the consolidated financial statements


For the year ended 31 December 2014
22. Programme commitments

17. Obligations under operating leases


Property
m

Other
m

2014
Total
m

2013
Total
m

Within one year


In two to five years
After five years

0.4
2.1
3.2

0.4
1.3
-

0.8
3.4
3.2

0.7
3.1
3.0

Total

5.7

1.7

7.4

6.8

At 1
January
2014
m

Cash flow
m

At 31
December
2014
m

Cash at bank and in hand


Loan due after one year
Current asset investments

3.7
(0.3)
29.1

1.2
(1.3)

4.9
(0.3)
27.8

Total

32.5

(0.1)

32.4

The amount payable within the next twelve months


on leases expiring:

Operating lease charges during 2014 were 6.2m for property and 1.8m for plant and machinery.

18. Analysis of changes in net short-term funds less borrowing

19. Derivatives not included at fair value


The British Red Cross uses derivative financial instruments to manage its exposure to foreign currency exchange risks, including
foreign exchange forward contracts. The fair value of these instruments is calculated at the balance sheet date by comparison
between the rate implicit in the contract and the exchange rate at that date.
At 31 December 2014, the British Red Cross had commitments to buy 3.3m Swiss francs in foreign exchange forward contracts,
with an unrealised loss of 21,000 (2013: commitments to buy 3.4m Swiss francs in foreign exchange forward contracts, with an
unrealised loss of 23,000).

The British Red Cross regularly pledges support to programmes led by the International Federation of Red Cross and Red Crescent
Societies (IFRC), International Committee of the Red Cross (ICRC) or other National Societies. In addition to the expenditure
recognised in the financial statements, the British Red Cross had outstanding pledges to the programmes disclosed below.
Full payment of the pledges is contingent on the outcome of British Red Cross reviews of the programmes and therefore the liability
has not been recognised at the year end.

At 31 December 2014, the British Red Cross had commitments to buy 0.4m Euros in foreign exchange forward contracts, with
an unrealised loss of 2,000 (2013: nil).

20. Related parties

2013
m

5.1
1.2
1.0
0.6
0.6
0.6
0.6
0.4
0.4
1.2

2.7
0.7
0.6
1.5
0.8
0.9

11.7

7.2

Philippine Red Cross - Typhoon Haiyan Ilo Ilo Recovery


Kenya Red Cross Society - Kenya Disaster Managament capacity
Lesotho Red Cross Society - Lesotho Water and Sanitation
South Africa Red Cross Society - KwaZulu Natal Integrated HIV & TB programme 2011-16 (Phase II)
Keyna Red Cross Society - Strengthening Resilience in Kainuk, Kenya
IFRC - DFID Disaster Risk Management Capacity Research Grant
Nepal Red Cross Society - Nepal Integrated Disaster Resilience (Jhapa)
Kenya Red Cross Society - Kenya Water and Sanitation
Myanmar Red Cross - Water and Sanitation / Maternal, Neonatal & Child Health programme
Bangladesh Red Crescent - Vulnerability to Resilience
Uganda Red Cross Society - Reducing Community Risk and Strengthening Disaster Response programme
Other programmes
Total

23. Analysis of net assets between funds


Unrestricted
m

Restricted
m

2014
Total
m

2013
Total
m

Tangible fixed assets


Fixed asset investments
Net current assets
Creditors: amounts falling due in more than one year
Provisions for liabilities and charges
Defined benefit pension scheme surplus

54.0
36.8
(1.2)
1.0

7.1
19.7
18.3
(0.3)
(0.4)
-

61.1
19.7
55.1
(0.3)
(1.6)
1.0

63.0
19.2
50.5
(0.3)
(3.4)
0.8

Net assets

90.6

44.4

135.0

129.8

Unrestricted
m

Restricted
m

2014
Total
m

2013
Total
m

Tangible fixed assets


Fixed asset investments
Net current assets
Creditors: amounts falling due in more than one year
Provisions for liabilities and charges
Defined benefit pension scheme surplus

54.0
36.8
(1.2)
1.0

5.5
19.7
18.4
(0.3)
(0.4)
-

59.5
19.7
55.2
(0.3)
(1.6)
1.0

63.0
19.2
50.5
(0.3)
(3.4)
0.8

Net assets

90.6

42.9

133.5

129.8

Group

At 31 December 2014, the British Red Cross had commitments to buy 2.9m US dollars in foreign exchange forward contracts,
with no unrealised gain or loss (2013: commitments to buy 0.9m US dollars in foreign exchange forward contracts, with an
unrealised loss of 14,000).
At 31 December 2014, the British Red Cross had commitments to buy 20.4m South African rand in foreign exchange forward
contracts, with an unrealised gain of 5,000 (2013: commitments to buy 3.1m South African rand in foreign exchange forward
contracts, with an unrealised loss of 11,000).

2014
m

Charity

There were no material transactions with related parties during the year (2013: none).

21. Capital commitments


There were 0.6m of capital commitments at 31 December 2014 (2013: nil).

62 / 63

Report and accounts 2014


Accounts

Notes to the consolidated financial statements


For the year ended 31 December 2014
24. Grant acknowledgements
During the year the Big Lottery Fund and Heritage Lottery Fund
provided grants for the following projects:

Purpose of grant

Balance 1
January
2014
000

Big Lottery Fund grants


Birmingham Refugee and Asylum Seeker Orientation and Support Service
First Aid for All, Blaenau Ffestiniog
Gofal (Care)
Health and Mobility: Outreach in Mid-Wales
Inspired Action - Keeping the Spirit of 2012 Alive
Leicestershire Refugee and Asylum Seeker Orientation and Support Service
Liverpool Asylum Outreach and Support Project
Mums' Project - Perinatal Support for Refugees
Neighbourhood Links
Nottingham and Derby Refugee and Asylum
Seeker Orientation and Support Service
Refugee and Asylum Seeker Orientation and Destitution Service - Portsmouth
South and West Yorkshire Refugee and Asylum Seeker Service
Torbay Navigators Project
Young Carers Have a Say in Shropshire
Heritage Lottery Fund grants
VAD Indexes Online

Balance 31
December
Income Expenditure
2014
000
000
000

48
3
10
17
37
8
27

90
248
17
104
57
106
94

(89)
(3)
(227)
(27)
(97)
(63)
(80)
(8)
(85)

49
21
7
11
63
36

30
23
21
17

102
96
106
1
53

(113)
(91)
(100)
(1)
(64)

19
28
27
6

(7)

(6)

Balances as at 31 December 2014 are included within our restricted funds.

Peoples Postcode Lottery grants


During the year the Peoples Postcode Lottery provided grants for the following projects:

>>> South Africa HIV Phase II - 100,000


>>> Zimbabwe Food and Economic Security - 175,000
Cabinet Office grants
During the year the Cabinet Office provided grants for the following projects:

>> > Cabinet Office (Office for Civil Society) and the Tripartite Group - Supporting Older People and Reducing Pressure on Hospitals Fund - 19,216
>>> Cabinet Office Centre for Social Action - Carers Social Action Support Fund - 28,932

I was at my lowest point.


I cant put into words how
grateful I am to the British
Red Cross.
Kathy Malcolm was
supported by a British Red
Cross volunteer who helped to
keep her positive as her health
deteriorated.
Photo Page 65 Samantha Whitwham/BRC.

64 / 65

Report and accounts 2014

Thank you
The British Red Cross would like to thank every individual
and organisation who supported our work in 2014.
They responded with great compassion and speed during emergencies as well as
maintaining our ongoing work in the UK and overseas. We would particularly like to
thank all those who support us regularly, enabling us to plan ahead with confidence.
We remember with gratitude the generosity of donors who left gifts to us in their
wills. We would also like to thank all our local fundraising committees and volunteers
for their hard work.

We would like to give special thanks to:


ArcelorMittal
AstraZeneca
Barclays
Big Lottery Fund
The Bradbury Foundation
Cabinet Office
Canon Europe
Childrens Investment Fund Foundation
Comic Relief
Department for International Development
DNV GL
Elastoplast
European Commission
Freemasons Grand Charity
Freshfields Bruckhaus Deringer LLP
Guernsey Overseas Aid Commission
Isle of Man International Development Committee
The Bailiff and People of Jersey
Jersey Overseas Aid Commission
John Lewis Partnership
Land Rover
Marsh & McLennan Companies
Nesta
Players of Peoples Postcode Lottery
Scottish and Southern Energy Power Distribution
Tesco PLC
Lifetime members of the Tiffany Circle:
Margaret Johnson OBE and Leagas Delaney
and Dr Sindy Newman
UK Power Networks
Vitol Foundation
Walmart Foundation
Welsh Government

Thanks also to members of the following


committees:
Jan Cawthorn
East Herts Fundraising Committee
Keith Hague and the International Medical & Scientific
Committee
The Hampshire Ball Committee
Hayling Island Fundraising Group
Invitation Events Committee Devon
Mrs Pippa Lamb and the South Oxon FR Committee
London Kensington Fair Committee
London Wine Tasting Committee
Dr Sindy Newman and the Tiffany Circle Steering
Committee
Ms Natalie Radford and the Isle of Man Committee
Maria Shammas MBE and the International
Fundraising Committee
Mrs Audrey Tibbles
Uttlesford Centre Autumn Gift Fair Committee
Mrs Jane Walker and the Lothian Ball Committee
Jane Whitbread and Bedfordshire Committees
Young Tiffany Circle

Thanks also to:


Africa Finance Corporation
Brendan Ainscough and Ainscough Training Services
Ltd
BBC Children in Need
Bliss Family Charity
Bloomberg L.P.
Dr E Boyd and Miss J A Boyd
The Cargill Trust
Channel 4
The City of London Corporation
The City of London Corporations Charity, City Bridge
Trust
Mrs Edith Conn OBE JP DL
Mr Terry Cross of Delta Print and Packaging
The Alice Ellen Cooper Dean Charitable Foundation
Festival Republic
Mr Donald Hall
Health Foundation
Heritage Lottery Fund
H&M
Johnson Matthey
Kavli Trust
Khoo Teck Puat UK Foundation
KPMG
Laura Ashley
The Bernard Lewis Family Charitable Trust
Lifescan Scotland Ltd

The Linbury Trust


Linklaters LLP
Lotus Foundation
Moffat Charitable Trust
Next
The Dowager Countess Eleanor Peel Trust
Penguin
Philips UK
Ryder Ltd
Sandbox Trust
Scottish Government
Dr Isobel Smart MBE
Miss M K M Strangs Charitable Trust
The Hugh Symons Charitable Trust
Constance Travis Charitable Trust
Khoi Tu
Unitarian Church
Wales Council for Voluntary Action
Mr and Mrs Weld
Garfield Weston Foundation
Zochonis Charitable Trust

66 / 67

Violence in Iraq forced


two million people from
their homes. We pledged
more than 140,000 to
buy thermal blankets
and sent staff to support
the emergency response
as temperatures fell
below freezing.
Photo Page 68 Wassem Al Bakri/Iraqi Red Crescent Society

British Red Cross


44 Moorfields
London
EC2Y 9AL
Tel 0844 871 1111
Fax 020 7562 2000
redcross.org.uk
Published 2015
The British Red Cross Society, incorporated by Royal Charter 1908, is a charity registered in
England and Wales (220949), Scotland (SC037738) and Isle of Man (0752).

Email production@redcross.org.uk
Tel 020 7877 7029

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