ScopeAnnual report and consolidated accountsfor the year ended 31 March 2014

Scope Company number: 520866 Charity registration number: 208231

Annual report and consolidated financial statements for the year ended 31 March 2014

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After leaving college, Chris spent two years as a customer at Scope’s day centre at a remote farm in Cornwall. In November 2013 the service moved to a community activity centre much nearer town, and the customers have a lot more choice of activities. Chris now volunteers at the activity centre twice a week, helping customers use the computers.

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Our vision, purpose and beliefs Our vision is a world where disabled people have the same opportunities as everyone else. Our purpose is to drive change across society so that disabled people have the same opportunities as everyone else. Our beliefs: We see the person and we set no limit on potential. We believe in independence, inclusion and freedom to choose. Everyday life equality. No more. No less. Together we can create a better society.

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Contents Chair’s review 6 Trustees’ report 10

Objects and public benefit 10 Strategic report

1. Achievements and performance 11 2. Financial review 16 3. Plans for future periods 24 4. Principal risks and uncertainties 27

Structure, governance and management 31 Employee involvement and the employment of disabled people 33

Statement of Trustees’ responsibilities 35

Independent auditors’ report to the members of Scope 37 Group statement of financial activities 40 Group and Charity balance sheets 43 Group cash flow statement and notes to group cash flow statement 45 Notes to the financial statements 49 Thank you to our supporters 100 Scope’s Directors and Trustees 101 Legal and administrative details 102

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Marie thought she may never have children because of her disability. But after six years of waiting and exploring different options, Marie and her husband Dan became the proud parents of Mark in November 2013. At three foot six and with brittle bone disease, Marie must adapt quickly as Mark grows.

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Chair’s review Looking back over last year's achievements, Scope has already made significant strides in implementing our strategy 'Changing Society'. Looking back further, over my two terms as Chair of Scope, our progress is even more remarkable. Six years ago, Scope was at a critical point, operating hand to mouth, and the Board's biggest priority was simply to keep the organisation going one week to the next. So we've come a long way. Changing the world we all live in, for the benefit of disabled people and their families, has been at the heart of Scope since its foundation, and our strategy ‘Changing Society’ is a reflection of that. Last year, it led to the first stages of our ambitious plans to deliver across our six strategic themes, with a real focus on living independently in the community. Disabled people have never been content to live in a society in which they can't play an active part and Scope is working alongside them to bring about the changes we want to see. This is something I'm especially proud of in this increasingly challenging economic climate. Implementing ‘Changing Society’ was never likely to be easy, including for some of those we support. If we really want to see change in society, it has to start with us, and this has required difficult conversations. We are proposing changes that I know impact significantly on people’s lives. But to create the change we want to see, we're taking difficult steps forward to ensure that disabled people have as much choice and control over their lives as they aspire to, in the same way that anyone else would. Last year, the Board of Trustees asked the Executive to review all our residential care homes for disabled adults with the aim of identifying which ones least support disabled people to live independently in the community. We are now proposing to radically change or close 11 of our care homes over the next three years. We are confident that this is the right thing for us to do as an organisation that believes in disabled people's independence. The very fact that we have the power to make such proposals demonstrates the conundrum we face – in the current system, too much control rests with the authorities and service providers, and not enough with the individual. That won’t change while old fashioned care homes like these are still open. We believe that in future disabled people will expect to choose who they live with – as many already do – and be part of their local community whenever they want, be able to use their own kitchen and bathroom and access all parts of their own home. And that just isn't possible in these services. We know this is difficult for those disabled people who've lived in these homes for years, the staff, and the residents' families who have come to depend on them. We have not proposed these changes lightly and we have carefully prepared plans in place to support residents, their families and staff

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to understand what the proposals mean for them and to take an active role in the consultation that will happen at each care home, with independent advocacy and personalised transition plans. To stay true to the vision that Scope has of a future where disabled people have the same opportunities to fulfil their life ambitions as everyone else does, we must continue to have higher expectations about what disabled people can achieve than the rest of society does, and create the right conditions for that to happen. Those conditions include the informal support networks that can be life changing for many disabled people and their families. Our investment in Face 2 Face, Community Organisers and short breaks services mean that disabled adults and families with disabled children can build their emotional resilience and develop high and positive expectations about what is possible for living in their local community. We've also developed and expanded our online offer by acquiring Netbuddy, which will become part of our new website where disabled people, parents of disabled children, carers and professionals can share practical information and tips on a range of topics. This will mean that together we will be able to support even more families, particularly at times of crisis. The support that disabled people need to live in the community is underpinned by the frameworks and systems set in place at the heart of government, and we are passionate about shaping the way that disabled people can live in the 21st century. We’ve influenced government on the Children and Families Bill and Care Bill to ensure the caring support disabled people need to do simple everyday tasks such as getting washed and dressed is put in place. Whilst we were very successful in working with government to put more money into the system, it is still chronically underfunded. Both Bills have now been passed and there is still a great deal of work to be done to ensure that disabled adults and children have access to support, activities and advice they need locally. I am sure that my successor will continue to lead Scope in highlighting the issues disabled people face ahead of next year's election campaign. Disabled people are, and should be seen as, citizens, leaders and role models in our society. Rising living costs, stagnant wages and pressure on day-to-day living mean it is absolutely crucial that disabled people are more visible. We have very strong national media coverage which, on average, mentioned Scope in connection with issues facing disabled people more than once a day over the past year. But to have the impact we want to, we need to raise our profile even higher. This year, we celebrated the 20th anniversary of our change of name from The Spastics Society to Scope. It's a change I'm enormously proud to have

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inherited. We updated our visual branding this year, giving greater strength and emphasis to our name. 'End the Awkward', our first significant awareness-raising activity for many years, was planned throughout 2013-14 and launched in May 2014. It uses humour to challenge attitudes and behaviours towards disabled people. This time next year, I'll be eagerly looking on as Scope takes more great strides in changing society, knowing that it's in a stronger place than it was six years ago but that its journey isn't finished yet! Your support has been, and will continue to be, invaluable for the Board of Trustees and the Executive as they work towards the goal of an inclusive society where disabled people can thrive. Thank you to everyone who supported Scope this year and contributed to making our society a better place for disabled people and their families.

Alice Maynard, Chair

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Our End the Awkward campaign, planned in 2013 / 14, tackles the awkwardness many people still feel around disabled people – fear of being patronising, or saying the wrong thing by mistake. Our ads, fronted by Alex Brooker, comedian and presenter of Channel 4’s The Last Leg, will be shown on TV and in cinemas at the start of 2014 / 15.

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Trustees’ report Objects and public benefit The Trustees present the Trustees’ Report and audited Consolidated Financial Statements for the year ended 31 March 2014. The legal and administrative details for the charity, Trustees and advisers can be found on page 102 and form part of the Trustees’ Report. What we are here to do Scope exists to make this country a place where disabled people have the same opportunities as everyone else. Until then, we’ll be here. We provide support, information and advice to more than a quarter of a million disabled people and their families every year. We raise awareness of the issues that matter. And with your support, we'll keep driving change across society until this country is great for everyone. Objects Scope is established for the public benefit and for general charitable purposes according to the laws of England and Wales and in particular, but not exclusively, for the promotion of equality, diversity, independence and health of disabled people, especially those with cerebral palsy. Public benefit aims In exercising relevant powers and duties the Trustees have considered Charity Commission guidance on public benefit. Impact At the beginning of 2013 / 14 we identified some key activities for the delivery of our social change goals. Over the course of the year we have gathered as much qualitative and quantitative data about these activities as possible. Based on this, we are now developing a baseline impact report for Scope. This report will assess impact by looking at the resources we have invested, the outcomes we have achieved, feedback from our stakeholders and relevant insight from outside the organisation. In line with this, we are beginning to change the way we measure and evaluate our activities to provide greater evidence of impact. This work will be used to inform future reports.

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Strategic report 1. Achievements and performance 2013 / 14 was a significant year for Scope with a number of important steps being taken in line with the goals set out in our strategy, “Changing Society”. Making these goals a reality is a long-term process – many of them will take years to realise. They are concentrated on six broad themes.

• Fulfilling family lives • Living independently in the community • Learning and skills • Work and volunteering • Financial well-being • Disabled leaders and role models.

Delivery of these themes is mainstreamed across the organisation – most of our activity delivers on two or more of the themes. Our accounts therefore reflect the delivery structure of the organisation rather than the strategic framework. Further details can be found on pages 14 and 16. Over the course of the year we identified five working priorities to give us the strongest possible platform to bring about real change in society.

• Taking our strategic themes forward • Embarking on a radical programme of transforming our services in line

with our strategy • Achieving greater visibility and a higher profile • Building Scope’s culture and capability to implement our strategy • Developing our business model towards financial sustainability by

improving efficiency and creating clarity and accountability for financial performance

Taking our strategic themes forward Throughout the year, we furthered our work around living independently in the community in a number of ways, most significantly the review of our care homes, detailed later. We also invested in personalisation training for customers and staff. Among other things, this means we can better support people to manage personal budgets. Our ‘Britain Cares’ campaign to influence the content of the Care Bill attracted the support of over 121,000 people and our deepening understanding of the issues affecting disabled people helped us to develop a campaign around living standards for launch in 2014.

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Working with families is an essential part of what Scope does and in 2013 / 14 we continued to invest in activities that bring us nearer to a society that recognises, includes and supports all kinds of families, in line with our fulfilling family lives theme. Our Face 2 Face service, which supports parents of disabled children through befriending networks, was positively evaluated by an external agency (nfpSynergy). This confirmed the transformative impact of the service for parents of disabled children, particularly during times of pressure or crisis. Based on this, we decided to expand the service so we can support more families in this way. We also made similar choices about our Sleep Solutions and fostering services. On learning and skills, we particularly focused on further education, piloting new approaches to supporting young disabled adults in Carlisle and Blackpool. We also increased our work with education professionals, by launching the Learning Together Toolkit, a suite of teaching and classroom materials that provides teachers and classroom assistants with practical ways to make their lessons more inclusive. To further our goals around work and volunteering we continued to deliver our statutory employment contracts, exceeding the targets we were set by the Department for Work and Pensions. And we went beyond this by demonstrating that our approach also leads to more sustainable employment for disabled jobseekers. We also worked in partnership with Mind and Marie Curie Cancer Care to develop and launch a retail voluntary work experience programme with Job Centre Plus. Our First Impressions, First Experiences project, a career training course for young disabled people living in East London, continued to deliver impressive outcomes and is something we are now looking to replicate in other areas. Our ambitions around financial well-being have become key goals for our campaign to improve the living standards of disabled people. We successfully tested an initiative to improve disabled people’s skills in managing their finances, supported by Capital One and working with Disability Direct. We also worked with npower to promote the ‘Energy Companies Obligation’ initiative, helping to reduce fuel poverty among disabled people. We have started to develop specialist financial products, such as insurance, aimed specifically at the needs of disabled people whilst remaining keenly priced and providing appropriate cover. In response to the increasing numbers of enquiries we receive around finances and benefits, we enhanced the information and advice we provide around these issues and employed a dedicated finance specialist at our helpline.

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On disabled leaders and role models we increasingly ensured disabled people were at the centre of our communications. To support this, we invested in doing more to capture disabled people’s real life experience through case studies and research. We also made the important decision that we would only look to recruit a disabled person as our new Chair. Embarking on a radical programme of transforming our services in line with our strategy In 2013 / 14, we began to review our current services for disabled people and their families, particularly our residential care home portfolio. This led us to the decision to propose closure or significant change to around 11 of our more old-fashioned residential care homes. The proposals were announced in October and have, understandably, created some anxiety among service users and their families. We will do everything we can to support people as we consult on the proposals and, should we go ahead, when we implement them. We know we need to update our whole services portfolio to reflect the changing needs of disabled people. As well as reviewing our existing services, we have also been focusing on what new services we should develop. This work is embryonic at the moment, but will result in new service models that help to change society in positive ways in future years. Achieving greater visibility and a higher profile To achieve our aim of a better society, we need to increase public understanding of issues that disabled people face. We also know that we need Scope’s work to be better known and understood if we’re to attract vital support. We launched a new website, reviewed our helpline and expanded the information we provide for disabled people and their families. In addition to this, we planned for the launch of a major campaign around disabled people’s living standards, framing it around three key themes: work, support and finance. The initial aim of this campaign is to influence the manifestos political parties will be developing in the lead up to the General Election in 2015. Building Scope’s culture and capability to implement our strategy We made significant changes to how we pay and reward our staff in 2013, most notably introducing performance-related pay to encourage our staff to aspire to the highest levels of customer service and performance. We have developed plans for leadership and management development programmes to support our senior staff to manage change and inspire excellence.

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A key element of our strategy is around work and volunteering opportunities for disabled people. We are committed to becoming a great employer of disabled people as an example to other organisations. In 2013 / 14 we have therefore reviewed and updated our approaches to the employment and career development of disabled staff within Scope, in particular focussing on recruitment and retention. Developing our business model towards financial sustainability by improving efficiency and creating clarity and accountability for financial performance To give us the best possible chance of delivering “Changing Society”, we need to look very carefully at how we work to ensure we are getting the most out of every penny our donors and funders give us. In 2013 / 14 we began a programme to identify and implement cost savings, improve the efficiency of our internal processes and reinforce a culture of responsible money management. We have continued to meet or exceed our income generating targets for example, opening seven new shops and attracting 36,500 new regular givers. More details are contained within the financial review. Main operational activities Our main activities can be divided into six categories. Delivery of our strategic themes is mainstreamed across these categories.

Type of activity Aim of activity Expenditure on activity Residential services for disabled adults

Providing high quality care services for disabled people

£22.4 million

Domiciliary, outreach and day services for disabled adults

Supporting disabled people to live independent lives

£5.3 million

Education services Supporting the learning of disabled children and young people

£23.5 million

Inclusion and transition services

Supporting disabled children and young people towards greater inclusion in society

£12.2 million

Information, advice, employment and support services

Providing high quality information on disability issues and supporting disabled people into work

£5 million

Influencing and capacity building

Influencing decision-makers, organisations and the public on disability issues

£2.9 million

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Alice was drinking and self-harming to deal with the emotional pain and stress of raising her two disabled sons. Her first visit from a Face 2 Face befriender was a revelation. Finally, Alice had somebody she could talk to about her feelings. Slowly, Alice found the strength to get on with her life and today she is a Face 2 Face befriender herself.

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2. Financial review Overview In 2013 / 14 we invested in key areas of work in order to take forward the delivery of our strategy. After a number of years of strong financial performance, we felt in a good position to do this and incurred a deficit after pension losses of £1,242,000 (2013: deficit £564,000), in line with budget expectations. Income was broadly consistent with last year despite the continuing challenges of the retail environment and the limitations resulting from stagnant statutory fees. The programme of rejuvenating the Services provision is ongoing with several closures this year. Against this, the fundraising performance, including grants, has improved for the second year running with income up by 12 percent. Costs were well controlled with total expenditure level with last year. We continued to invest in longer term fundraising activity, which will generate more income in the future. The level of free reserves reduced to £6.8 million (2013: £7.0 million) reflecting the ongoing investment programme in new shops and securing future voluntary income (see note 28). The main headlines for 2014 are as follows. • Income decreased slightly to £102.6 million (2013: £103 million) due

mainly to higher retail and voluntary income offset by lower fees. • Cost of generating funds remained level at £31.0 million (2013: £31.1

million). • Expenditure on charitable activities increased slightly to £71.3 million

(2013: £70.8 million). • Net assets, decreased by £1.2 million to £30.5 million. Income The incoming resources figure of £102.6 million for 2013 / 14 is made up of income generated by fundraising activity, income from Scope’s retail operations and income from Scope’s charitable activities, mainly fees income with a small amount of investment income. Total income from voluntary fundraising (including grants) increased from £18.6 million to £20.7 million, an increase 12 percent. Growth occurred in all areas of fundraising activity but in particular in events and individual giving,

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the latter as a result of the continued investment in the expansion of our individual giving recruitment programme which started 2011 / 12. Gross income from our charity shop chain, £23.0 million, was £0.5 million higher this year. Trading was difficult during the first half of the year but picked up after Christmas with a very successful final quarter. Donated sales were up 2.9 percent (£0.6million). Shop numbers were slightly lower with thirteen closures being offset by seven new shop openings. We also continued to invest in our shops, refitting 9 shops and refreshing 22. Retail property dilapidation and professional costs were (£0.4 million) higher this year due to the volume of closures (13 compared to 5 last year). Fee income, which is primarily earned from statutory funders for our services, at £54.9 million was £3.7 million below last year. As part of our ongoing services transformation process, in addition to those currently proposed for change, a number of services have been closed which has been partly offset by successes in developing new services. The sale of properties resulted in a gain of £0.1 million (2013: £0.7 million) and the investment portfolio generated income of £0.3 million (2013: £0.3 million). Volunteers have always been vital in delivering our work and bring their time, energy and enthusiasm to many activities in the organisation. We have over 9,000 volunteers across Scope. In our shops alone volunteers contributed over 1.6 million hours in time. Cost of generating funds The total cost of generating funds, including investment management costs was level at £31.0 million (2013: £31.1million). Overall fundraising costs and retail costs were held level despite significant investments in these areas. Expenditure on charitable activities Total expenditure on charitable activities was £71.3 million (2013: £70.8 million). 95 percent of this is on services that directly support our disabled customers to achieve choice, control, inclusion and independence in their lives. An explanation of the breakdown of the various charitable activities that relate to the objects of Scope can be found in note 1 – accounting policies (page 49). We continue to focus on delivering efficiencies in our services whilst improving service quality and safety. The expenditure on ‘domiciliary,

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outreach and day services’ increased significantly as a result of Scope continuing to win new contracts for services. The reduction of expenditure on information, advice, employment and support is the result of closure of loss making supported employment delivery contracts during the year. Pensions The year-end valuation of the Scope Pension Scheme (which is closed to new members and to future accrual), showed an asset of £7.2 million based on FRS17 assumptions (2013: asset of £14.6 million). As the Scope Pension Scheme is closed to future accrual (meaning that the surplus cannot be recovered through reduced contributions) and refunds have not been agreed with the Scheme Trustees, the asset has been capped to nil value in accordance with the requirements of FRS17. The decrease in surplus is primarily due to the following factors: • worse than assumed asset returns • the reduction in the discount rate during the year • an increase in commutation factors. This has been partially offset by: • the deficit contributions made during the year as agreed in the triennial

valuation; • a reduction in the assumptions for future price inflation. Further details are set out in note 12 to the financial statements. Net assets The consolidated net assets for Scope at £30.5 million have decreased by £1.2 million. Fixed assets have decreased by £1.8 million mainly as a result of a decrease in assets held as investments as shown in note 14. Net current assets of £4.0 million are £0.3 million above last year. This reflects a small increase in overall debtors (note 16) and reductions in year-end cash balances and creditors (see note 17). Long-term borrowings increased by £0.2 million (see notes 18 and 21). Review of the activities of the subsidiaries During the year ended 31 March 2014, we had three active subsidiaries: Scope Central Trading Ltd., Mac Keith Press and Learning Disabilities

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Resources Ltd. Subsidiary activity is included in these financial statements on a line-by-line basis. Details of all our subsidiaries, including dormant entities are given in notes 6 and 15. Scope Central Trading Ltd. The company’s main activities are the purchase and sale of new general merchandise, greeting cards, clothing and giftware in Scope’s retail chain, as well as generating income through other commercial services. All taxable profits generated are transferred to Scope as a Gift Aid payment. A resolution was passed by the Board of Directors on 13 March 2014 that the Gift Aid payment would be provided for in the year to which the profits relate and, as a result, no deferred tax liability would arise. The turnover for the year was £1.6 million (2013: £1.8 million). Net operating profit before the gift aid payment to Scope was £839,387, £31,790 down on 2012 / 13. Mac Keith Press Mac Keith Press is a wholly owned subsidiary charity whose central purpose is the advancement of the education of the public through promotion of research in the fields of child development and paediatric neurology. The main activity is the publication of a medical journal available on subscription entitled ‘Developmental Medicine and Child Neurology’ which is purchased by medical establishments and individuals throughout the world and is the leading scientific publication on child neurology. Mac Keith Press also publishes a series of professional specialist books, ‘Clinics in Developmental Medicine’. The charity’s income for this financial year was £0.6 million (2013: £0.6 million). Sales remain static overall with a surplus for the year of £0.1 million (2013: surplus of £0.1 million). A five -year business plan to deliver an annual surplus is already successfully underway. Learning Disabilities Resources Ltd. The charity was acquired by Scope as a wholly owned subsidiary for a nominal consideration on 31 January 2014. The aim of the charity is to provide a website and network which disseminates information, offers guidance, signposts services and facilitates interactive forums for families, carers and professionals and volunteers with the aims of assisting people with learning disabilities to integrate more fully into society and the community. In the period since acquisition, the charity has focussed on consolidating its activities into the operations of the group. Income and expenditure has been included in the financial statements from the date of acquisition.

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Reserves policy There is a need for Scope to implement a reserves policy to ensure that that the organisation holds sufficient funds to be able to mitigate the financial impact of events that lead to a shortfall in income or unplanned expenditure, and can take advantage of future strategic development opportunities that may arise. Our reserves policy focuses on the level of its ‘free’ reserves. Free reserves are defined as net assets excluding restricted funds, designated funds, and also that part of general and investment funds that have been used to acquire fixed assets for the charity’s own use. Our unrestricted reserves at 31 March 2014 were £24.7 million of which £18 million are fixed assets in use by the charity. The level of free reserves at 31 March 2014 was £6.8 million (2013: £7.0 million). See note 28 for details. As indicated in the Trustees Annual Report last year, we have reviewed the reserves policy in the light of the new strategy. The new reserves policy remains risk based and seeks to assess the financial risks facing Scope in the short, medium and longer term and allocate reserves based on this risk analysis. It is broken down as follows: • short term “in-year” risks (£1 million) • medium term risks (£3 million) • longer term strategic change (£3 million) The target for free reserves is thus £7 million which is reviewed by the Board of Trustees on an annual basis. The valuation for the risks noted above is linked to the major corporate risks highlighted in section 4 below, to ensure that our assessment of the financial impact of changes in risk is reflected in the reserves policy. Investment policy and performance Scope’s investment objectives are as follows. • To cover short term financial risks, the objectives are to ensure security

and liquidity of funds held. • To preserve the value of the funds held in order to cover longer term

financial risks and funding for future development opportunities (measured over a rolling three year period).

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• To ensure low volatility in investment asset values (measured over rolling three year periods), to provide certainty for Scope’s short- to medium-term planning.

• To achieve a total return on investments greater than the UK retail price index measured over a rolling three year period.

Royal London Asset Management (RLAM) were appointed as Scope’s investment managers to manage the investment mandate from May 2011. The asset managers are assigned a benchmark split of the asset holdings of 41 percent cash or cash equivalents, 41 percent bonds and 18 percent equities within which to achieve Scope’s investment objectives. This policy aims to ensure that Scope’s unspent restricted funds and free reserves are held in assets that are secure and liquid, and also where their value is preserved in the longer term. The balance between security and liquidity versus maintaining / enhancing long-term real value will be achieved through the asset allocations set under the policy. These asset allocations should reflect the reasons for Scope holding surplus funds (that is funds required at short notice versus funds required for longer term requirements). We have also developed an ethical approach to our investments policy as set out below. 1. Ethical screens to cover exclusions of investment holdings in companies

with significant trading interests in armaments, tobacco, pornography, alcohol, gambling, animal testing (outside of medical research for the benefit of humans).

2. The adoption of a balanced approach that only allows investment in companies that EIRIS (Experts in Responsible Investment Solutions) consider have adequate management systems that help to mitigate their environmental impact and adequate policies together with systems to help manage their exposures to regions that EIRIS consider represent a ‘human rights risk’.

The fund manager will, through positive selection, ensure that wherever possible, companies within the portfolio exhibit appropriate policies regarding discrimination on the grounds of disability, age, religion, race or sex and sexual orientation. The performance of the investment portfolio (against the objectives, asset allocation and ethical criteria highlighted above) is assessed regularly by management.

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The value of Scope’s investments at March 2014 was £9 million. The asset allocation at March 2014 was 42 percent cash and cash equivalents, 37 percent ethical bonds and 21 percent ethical equities. There was a net divestment of £1.6 million during the year to fund the working capital requirements of nationally-implemented changes to funding of education services which were previously funded in advance and are now funded in arrears.

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Gaby had always wanted to work in a kitchen. When a placement in a factory canteen came up, Scope matched her with a support worker to accompany her until she felt ready to go it alone. Gaby did so well that she was offered a permanent job – and her newfound confidence meant she could move away from home and into supported living.

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3. Plans for future periods

During the coming year we will make a step change in our work to change society, particularly through the transformation of our services and generating awareness. By investing in these areas of work, we believe we will contribute to real positive change across our society. Underpinning all of this will be a programme of work to increase our ability to work safely, sustainably and innovatively. Service transformation Our strategy highlights the importance of Scope needing to change. Over the coming years this will mean not only transforming the things we do, but sometimes stopping them entirely – the proposals announced last year on the future of our care homes are one example of this. We will ensure that the five consultations planned for 2014 / 15 are carried out in the right way. We will make sure people have a genuine chance to contribute and that, when we do make decisions to change things, the changes are carried out sensitively and respectfully. In addition, we are beginning an important piece of work to design the services of the future for Scope. This will involve understanding what disabled people and their families want and need, and finding innovative ways of supporting them. Influence and impact To make the biggest impact, both Scope and disability need to be better known and understood. In 2014 / 15 we will deliver our ‘End the Awkward’ campaign to challenge public attitudes around disability and generate profile for our work and cause. We will also aim to influence the policy environment in the approach to the next election through our living standards campaign, particularly focusing on the extra costs of being disabled, work and independent living. Safety and quality in services During times of change, it is even more important that we do everything we can to ensure the safety of our service users. We must make sure we are providing the best, most personalised service for everyone we support. This is the foundation for everything we do in our services. We will make sure that clear standards are set and met at every one of our services – and that our staff are supported to achieve them.

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Culture and capability

In recent years we have invested more in our staff and volunteers. Next year, we will do more to make sure they are all managed well, rewarded appropriately and have the skills and knowledge they need to do their jobs well. We will also do more to make Scope a great place to work for disabled people.

Financial sustainability

We have a responsibility to make the best possible use of every penny we are given. The priorities above will all require investment for us to deliver them well. In combination, these two things mean that less money will be available for everything else – so we have to reduce our costs. We will make sure that our support functions in particular represent good value for money.

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Tony is dad to six-year-old Lucia who has cerebral palsy. Tony and his wife stumbled across Scope’s online forums soon after Lucia was diagnosed, and found them to be a great source of support. Earlier this year Tony ran the London Marathon to raise money for Scope.

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4. Principal risks and uncertainties

Management of risk is an integral part of our planning and project management processes, with risks identified and assessed as we develop our plans each year. We maintain corporate and departmental risk registers and monitor them as part of our regular performance reviews. We have also developed a framework that will provide assurance that we are managing our activities effectively.

Our Audit Committee and Trustees monitor and review our significant risks and our processes for managing them, along with our arrangements for internal and external audits and financial statements.

A number of major risks have been identified and are mitigated as follows:

• Poor quality service causes death, injury, abuse or harm to a customer/service user/ member of staff. Mitigation: An overall action plan,coordinating points from previous safeguarding reviews and reports, isbeing implemented. The Corporate Safeguarding group reviews progressquarterly. Completion of relevant staff training is being monitored andshortfalls addressed. Management information has been improved toupgrade our ability to respond to safeguarding issues.

• Our profile is too low to support our strategic aims. Mitigation: We havelaunched a major awareness drive. A media campaign has been runningsince May and engaged a significant number of new supporters. We aremanaging our media and digital profile and key staff are media trainedand briefed. We monitor media coverage and awareness of our brand.

• Our reputation is damaged. Mitigation: We proactively manage issues thatwe think may be controversial, developing communications plans ahead oftime. Our External Affairs department has a reputational risk register andrisk management process in place with a key individual allocated tomanage each higher rated risk. We monitor digital and traditional mediachannels to ensure we are portrayed positively.

• Long term transition of finances may not be possible within reservesconstraints. Mitigation: Our reserves policy is now risk-based and thereforemore closely aligned with ensuring financial sustainability. We review ourreserves policy and long term financial plans annually to ensure that theyremain relevant and keep reflecting the organization's current status. Workto shape Scope's future service offer will influence long term plans.

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Other significant risks that we have managed during the last year include: • service models are not consistent with and do not deliver against our

vision • financial targets are not met• we do not have the capacity and capability to deliver our planned

objectives and strategy• we fail to demonstrate the value or impact of our activity• we fail to gain support and collaboration from our stakeholders.• we fail to comply with current data protection legislation.

We closely monitor our financial position so we can deliver our objectives and respond to these and any other major risks or uncertainties that may arise.

Financial risk management

In the ordinary course of its activities, Scope actively manages a variety of financial risks including credit risk, liquidity risk and interest rate risk through various control mechanisms as detailed in the following sections.

Credit risk

Credit risk is the risk that Scope would incur a financial loss if a counterparty failed to discharge its obligations to the group. Scope is subject to credit risk from its investment assets held by various counterparties however the risk is seen to be relatively small due to the nature of the investments and credit worthiness of the counterparties. The relevant aspects of Scope’s investments are as follows. • Scope’s investments of £9million are managed by Royal London Asset

Management (RLAM). RLAM are an A- credit rated organisation. RLAM’s investment performance and credit rating are overseen by the Scope Resources Committee.

• Scope’s main cash balances of £1.7 million are held in accounts managedby the RBS Nat West Group. Smaller cash management arrangements are also held with other UK based clearing banks. The credit rating of all these banks is taken into account when reviewing credit risk.

• No transactions involving derivatives are undertaken by Scope.

Liquidity risk

Liquidity risk is the risk that Scope will encounter difficulties raising cash to meet its obligations when they fall due. Scope monitors its exposure to liquidity risk by regularly monitoring its level of cash and liquid assets and preparing rolling annual cash flow forecasts on a monthly basis. Scope keeps sufficient cash balances to cover its predicted obligations plus a safety net

28

which includes an overdraft facility. In addition Scope has access to £4 million of cash investments which can be drawn down within 48 hours.

Currency risk

Currency risk is the risk that the value of financial instruments or future cash flows will fluctuate because of changes in foreign exchange rates. Scope’s exposure to currency risk is minimal. There is a small risk regarding the administration and listing fees relating to Scope’s Bond which are in Euros but these are immaterial (less than £5,000 per year). All other cash flows related to the Bond and all other financial instruments are in (GBP) sterling. The purchase of goods and services in currencies other than sterling (GBP) is minimal.

Interest rate risk

Interest rate risk is the risk that the value of financial instruments or future cash flows will fluctuate because of changes in interest rates. Scope has a number of interest bearing loans including the Scope investment bond, mortgages on properties and specific loans arranged with both institutions and individuals. The interest rates vary from 0 percent – 6 percent. The current annual interest payable on these loans is £279,000 per annum. Scope aims to minimise its exposure to movements to risk by arranging fixed term interest rates where possible. However some loans are linked to bank base rate or can be renegotiated after a period of years. Scope has calculated that the increased interest cost of a 2 percent and 5 percent increase in base rate is currently £25,000 and £62,000 per annum respectively.

Market risk

There is no difference between fair value and market value in relation to the investments and bond assets and liabilities included within the financial statements as no derivatives are traded and there are no other market exposures. Principally amounts are held in equities or cash or cash equivalents.

29

30

When he started at Scope’s Craig y Parc school, Jamie was so shy that

he could hardly speak to strangers. He says he felt like he was ‘living in

a void’, unable to connect with others. Four years later, the world has

opened up – Jamie is a confident aspiring writer and actor, with all the

skills he needs to find success.

Structure, governance and management

Scope is a charitable company. Our main governing document is our Memorandum and Articles of Association, last amended on 29 March 2014. We are led by our Board of Trustees.

Day to day management of the charity is delegated to the Chief Executive (Richard Hawkes) in accordance with the Scheme of Delegation. This document is reviewed annually by the Board and sets out which matters are reserved solely for decision by the Board and which are delegated to the executive. The Chief Executive reports progress on key areas of work to the Board on a regular basis.

Committees of the Board

There are four standing Committees of the Board. They are Audit, Development, Nominations and Resources. Their roles are as follows.

Audit - oversees the ongoing development and monitoring of the corporate assurance framework, provides assurance that appropriate frameworks and processes are in place and ensures their application. It is responsible for overseeing internal and external audit arrangements and processes.

Development - provides assurance to the Board that proposals being presented to the Board have been reviewed with due consideration to Scope’s stakeholders and to provide the Board with recommendations accordingly. Stakeholders include Scope’s beneficiaries, service users, disabled people and disabled people’s organisations and Scope’s Members.

Nominations - ensures that the Board of Trustees has the right balance of skills, expertise and experience required to govern a large, complex charity and company such as Scope, by presenting prospective Trustees for election by Scope’s Members.

Resources - provides assurance to the Board that the Charity is using its resources and assets appropriately.

Membership of all four committees includes both Trustees and independent members. Committee members provide input to Board meetings on relevant items discussed at the committee meetings. Each committee provides an annual report to the Board, outlining how it has worked to its terms of reference and outlining key areas of work from the reporting year. In addition to this, the Chairs and executive leads for all committees meet twice a year to ensure that the roles of and communication between committees is effective.

31

Trustee recruitment Trustees are appointed by the Members of Scope for up to two terms of three years. Candidates are recruited on the basis of the skills and experience required on the Board. The Nominations Committee oversees the process and makes recommendations to Scope’s Members. The Nominations Committee identifies the skills, experience and knowledge that will be needed on the Board and seeks to recruit candidates on this basis. The Committee then proposes candidates for election by the members at the Annual General Meeting.

Board induction All new Trustees attend an induction programme to ensure understanding of the role of Trustees under Charity Law and being a Director under Company Law. Induction also provides an overview of the history of Scope, its structure, mission and strategy. Trustees also visit Scope services and shops and meet with staff who provide more information on areas of Scope’s work. All new Trustees meet with the Chair to explore and identify individual learning and development needs. A “buddy” system, where incoming Trustees have the opportunity to work more closely with longer standing Trustees, has also been an effective part of induction. The Board has a programme of activities that focuses on its overall development and assessing its effectiveness. In addition to the skills audit that supports Trustee recruitment, Trustees undertake individual appraisals and the Board went through an appraisal process in 2013. These inform Trustee development which may include information sessions at Board meetings, identifying events that Trustees may wish to attend and the programme for the biannual Board away days.

Scope Assembly The Chief Executive and Trustees regularly meet with a group of Members elected by their peers - the Scope Assembly. Meetings take place two or three times a year and are opportunities for the Board and Executive Team to involve the Members in key pieces of work.

Remuneration and senior pay The salaries and benefits of the Chief Executive are set by the Board of Trustees based on recommendations from a standing committee of the Board whose responsibilities include matters relating to the Chief Executive’s pay. This committee’s recommendations are made following an analysis of the salaries of senior staff in comparable organisations, in particular large charities and public sector bodies.

32

Employee involvement and the employment of disabled people

Engaging openly with our workforce is an important part of making Scope a great place to work and we do this through a number of informal and formal means, ranging from staff forums, opinion surveys and our new performance management system through to newsletters, leadership forums and briefings.

Additionally, in support of Scope’s Changing Society strategy, the organisation is actively working towards becoming a great place to work for disabled people, recognising the immense contribution that a diverse workforce of volunteers and employees bring. Key areas of work include a comprehensive review of our recruitment and selection processes, developing Access Champion networks and ensuring learning and development activities are underpinned by diversity awareness.

33

Emily works on Scope’s employment programme, supporting young disabled people from East London develop the skills and confidence they need to get meaningful work. Emily has seizures and has been discriminated against herself by past employers because she’s disabled. Now she channels her passion for equality into her work.

34

Statement of Trustees’ responsibilities The Trustees (who are also directors of Scope for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group 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 UK Accounting Standards have been followed,

subject to any material departures disclosed and explained in the financial statements, and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Disclosure of information to auditors The Trustees who held office at the date of approval of this Trustees’ report confirm that, so far as they are each aware, there is no relevant audit information of which the company’s auditors are unaware, and that each Trustee has taken all the steps that they ought to have taken as a director to

35

make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information. The Board of Trustees will be recommending to the members at the annual general meeting that PricewaterhouseCoopers LLP is reappointed as auditor of Scope for the forthcoming year. The Trustees’ Report and Strategic Report were signed on behalf of the Trustees by

Alice Maynard Chair 18 July 2014

36

Independent auditors’ report to the members of Scope Report on the financial statements Our opinion In our opinion the financial statements, defined below: • give a true and fair view of the state of the group’s and of the parent

charitable company’s affairs as at 31 March 2014 and of the group’s incoming resources and application of resources, including its income and expenditure and the group’s cash flows for the year then ended;

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

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

This opinion is to be read in the context of what we say in the remainder of this report. What we have audited The group financial statements and parent charitable company financial statements (the “financial statements”), which are prepared by Scope comprise: • the group and charity balance sheets as at March 2014; • the group statement of financial activities for the year then ended; • the group cash flow statement for the year then ended; • the notes to the financial statements, which include a summary of

significant accounting policies and other explanatory information. 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). In applying the financial reporting framework, the Trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events. What an audit of financial statements involves We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). An audit involves obtaining evidence about the amounts and disclosures in the financial statements

37

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 group’s and the parent charitable company’s 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 and consolidated accounts 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 other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Annual Report, including the Strategic Report, for the financial year for which the financial statements are prepared is consistent with the financial statements. Other matters on which we are required to report by exception Adequacy of accounting records and information and explanations received Under the Companies Act 2006 we are required to report to you if, in our opinion: • we have not received all the information and explanations we require for

our audit; or • adequate accounting records have not been kept by the parent charitable

company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility. Trustees’ remuneration Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of Trustees’ remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.

38

Responsibilities for the financial statements and the audit Our responsibilities and those of the Trustees As explained more fully in the Statement of Trustees’ Responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the charity’s members and Trustees as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Lynn Pamment (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors 7 More London Riverside, London, SE1 2RT Date:

39

Group statement of financial activities (Incorporating an income and expenditure account) For the year ended 31 March 2014 Note Incoming resources: Incoming resources from generated funds Voluntary income: Donations and gifts 2 Legacies 2 Activities for generating funds: Retail income 3 Investment income 4 Incoming resources from charitable activities: Fees Grants 5 Sales and other income 7 Other incoming resources: Gain on sale of tangible fixed assets Total incoming resources Resources expended: Cost of generating funds: Fundraising costs 9 Shop costs (including cost of sales) 9 Investment management costs 9 Total cost of generating funds Charitable activities: Residential services for disabled adults Domiciliary, outreach and day services for disabled adults 9 Education services 9 Inclusion and transition services 9 Information, advice, employment and support services 9 Influencing and capacity building 9 Total charitable activities Governance costs 8 Other resources expended Pensions finance charge 12 Total resources expended 9 Net (outgoing) / incoming resources before transfers Transfers between funds 22 Net (outgoing) / incoming resources before other recognised gains and losses

Other recognised gains and losses: Net realised gain / (loss) on investment assets 14 Net (expenditure)/income for the year Net unrealised gain on investment assets 14 Actuarial loss on defined benefit pension schemes 12 Net movement in funds Fund balances brought forward at 1 April Fund balances carried forward at 31 March

40

Unrestricted funds £000

Restricted funds £000

Total funds 2014 £000

Total funds 2013 £000

10,934 1,123 12,057 10,960 4,675 221 4,896 4,982

23,040 - 23,040 22,564

282 - 282 289

54,775 90 54,865 58,547 1,793 1,974 3,767 2,629 3,058 528 3,586 2,317

142 - 142 673

98,699 3,936 102,635 102,961

8,522 38 8,560 8,524 22,368 10 22,378 22,569

16 - 16 34 30,906 48 30,954 31,127

21,991 406 22,397 22,923

4,444 839 5,283 3,954 22,056 1,423 23,479 21,697 11,692 485 12,177 12,498

4,630 332 4,962 7,094 2,860 65 2,925 2,652

67,673 3,550 71,223 70,818 570 - 570 642

548 - 548 723

99,697 3,598 103,295 103,310 (998) 338 (660) (349)

133 (133) - - (865)

205 (660) (349)

185 - 185 (14)

(680) 205 (475) (363) 35 - 35 455

(802) - (802) (656) (1,447) 205 (1,242) (564)

26,123 5,599 31,722 32,286 24,676 5,804 30,480 31,722

41

Group statement of financial activities – notes (Incorporating an income and expenditure account) For the year ended 31 March 2014 There were no gains or losses during the year other than those included above. There is no material difference between the net (outgoing) / incoming resources before other recognised gains and losses and their historic cost equivalent. All results derive from continuing operations.

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Group and charity balance sheets as at 31 March 2014

Group Charity Note 2014

£000 2013 £000

2014 £000

2013 £000

Fixed assets Tangible assets 13 24,701 25,371 24,699 25,370 Investments 14 9,025 10,136 9,025 10,136

Total fixed assets 33,726 35,507 33,724 35,506

Current assets Stocks 475 452 109 98 Debtors 16 8,726 8,641 9,037 9,030 Cash at bank and in hand 1,681 3,029 1,339 2,669 Total current assets 10,882 12,122 10,485 11, 797 Creditors: amounts falling due within one year 17 (6,918) (8,500) (6,775) (8,376) Net current assets 3,964 3,622 3,710 3,421 Total assets less current liabilities 37,690 39,129 37,434 38,927 Creditors: amount falling due after more than one year

18

(6,972)

(7,160)

(6,972)

(7,160)

Provision for liabilities and charges 20 (238) (247) (187) (180) Net assets 30,480 31,722 30,275 31,587

43

Group and charity balance sheets as at 31 March 2014 (continued)

Group Charity Note 2014

£000 2013 £000

2014 £000

2013 £000

Funds Restricted income funds 22 5,804 5,599 5,804 5,599 Unrestricted income funds (including investment

revaluation reserve) 22 24,676 26,123 24,471 25,988

Total funds 30,480 31,722 30,275 31,587

Scope has a defined benefit pension scheme which is closed and in surplus please see note 12 for details.

The notes on pages 49 to 99 form part of these financial statements.

The financial statements on pages 40 to 99 were approved by The Board of Trustees on 18 July 2014 and signed on its behalf by:

Alice Maynard, Chair Company number: 520866

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Group cash flow statement

Group Note 2014

£000 2013 £000

Net cash outflow from operating activities A (17) (776) Returns on investment and servicing of finance B 91 128 Net cash inflow / (outflow) on capital expenditure and financial

investment C (289) (2,133)

Net cash outflow before the use of liquid resources (215) (2,781) Management of liquid resources and financing D (895) 1,330

Net cash outflow before the use of liquid resources (1,110) (1,451)

Cash brought forward at 1 April 2,791 4,242

Cash carried forward at 31 March E 1,681 2,791

Reconciliation of net cash flow to movement in net debt 2014

£000 2013 £000

Decrease in cash in the year (1,110) (1,451) Management of liquid resources and financing D 895 (1,330)

(215) (2,781) Net debt at 1 April (5,564) (2,783)

Net debt at 31 March E (5,779) (5,564)

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Notes to group cash flow statement A. Reconciliation of net outgoing resources to net cash outflow from operating activities Group

2014 £000

2013 £000

Net incoming / (outgoing) resources before other recognised gains and losses (660) (349) Investment income received (269) (273) Interest receivable (13) (16) Interest payable 191 161 Difference between pension contributions and current service cost (802) (656) Depreciation – fixed assets 2,431 2,379 Profit on sale of tangible fixed assets (142) (673) (Increase) / Decrease in stock (23) (87) (Increase) / Decrease in debtors (85) 384 Decrease in creditors (636) (1,728) (Decrease) / Increase in provisions for liabilities and charges (9) 82 Net cash outflow from operating activities (17) (776)

46

Notes to group cash flow statement (continued) B. Returns on investment and servicing of finance Group

2014 £000

2013 £000

Investment income received 269 273 Interest received 13 16 Interest paid (191) (161) Net cash inflow from investments and servicing of finance 91 128

C. Capital expenditure and financial investment Group

2014 £000

2013 £000

Purchase of tangible fixed assets (1,762) (2,569) Sale of tangible fixed assets 142 709 Transfer of cash to investments (235) - Investments 1,557 (382) Purchase of fixed asset investments (7,074) (1,190) Sale of fixed asset investments 7,083 1,299

Net cash inflow / (outflow) on capital expenditure (289) (2,133)

47

Notes to group cash flow statement (continued) D. Financing Group

2014 £000

2013 £000

Drawdown on loans 50 2,915 Capitalised interest on loan 207 180 Capital repayment of finance lease rentals (182) (292) Capital repayments of property loans (807) (1,313) Interest repayments of property loans (163) (160)

Net cash (outflow) / inflow from financing (895) 1,330

E. Analysis of changes in net debt Group

At 31 March 2013 £000

Cash flows

£000

Non-cash changes

£000

At 31 March 2014 £000

Cash at bank and in hand 3,029 (1,348) - 1,681 Bank overdraft (238) 238 - -

2,791 (1,110) - 1,681 Finance leases (232) 182 - (50) Loan (8,123) 713 - (7,410)

Net debt (5,564) (215) - (5,779)

48

Notes to the financial statements 1. Accounting policies Basis of preparation The financial statements are prepared on a going concern basis, in accordance with the Charities Act 2011, the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ published in March 2005, applicable accounting and reporting standards in the United Kingdom and the Companies Act 2006. The particular accounting policies adopted by the Board of Trustees are applied consistently year on year across the group and are described below. The charity has taken advantage of the exemption from preparing a cash flow statement under financial reporting standard 1 (revised 1996). The cash flows of the charity are included in the consolidated financial statements. Accounting convention The financial statements are prepared under the historical cost convention as modified by the revaluation of investments. Basis of consolidation The consolidated financial statements of the group incorporate the financial statements of Scope and its subsidiary undertakings. The total incoming resources attributable to the charity were £101,060,000 (2013: £101,419,000). The net outgoing resources attributable to the charity before transfers and other recognised gains and losses were £776,590 (2013: net outgoing resources of £349,000) before pension scheme actuarial losses of £802,000 (2013: £656,000) and before investment gains of £220,000 (2013: £441,000). As permitted by Section 408 of the Companies Act 2006, and also paragraph 397 of SORP 2005, no separate statement of financial activities is presented in respect of the parent company. Subsidiaries, including acquisitions during the year, are included in these financial statements on a line by line basis. Incoming resources All income is recognised in the statement of financial activities when the conditions for receipt have been met (i.e. there is entitlement to the funds), it is virtually certain that the funds will be received and the funds can be reliably measured. Where a claim for repayment of income tax (gift aid) has been or will be made, such income is grossed up for the tax recoverable. The following accounting policies are applied to income:

Fees for services Fees are recognised when receivable for services provided, mainly to public bodies, for residential, day care, education and other services. Income received in advance is deferred until it is deemed that the service has been provided.

49

Notes to the financial statements 1. Accounting policies (continued)

Grants receivable from government bodies for revenue expenditure Grants are recognised in the statement of financial activities when the conditions for entitlement have been complied with. Grants received in advance of that point are deferred and included in creditors at year end.

Sales and other income Sales income comprises income receivable for the sale of books and journals, Disability Now, Thorngrove horticultural centre, sponsorship and other incoming resources from charitable activities (note 7). Sales and other income are recognised on the date of sale. Royalty income is recognised on the date of the related sale. Donations and gifts Donations and all other receipts from fundraising are included gross when received. Gift Aid to which Scope is entitled but which it has not received by the year end is included in incoming resources in the statement of financial activities and shown as debtors in the balance sheet. Assets given for use by Scope are recognised as incoming resources at their estimated market value when received and an equivalent amount is included in the appropriate cost line. If they form part of the fixed assets at the year end, they are included in the balance sheet at the value at which the gift was included in incoming resources. Donated goods for sale in Scope shops are recognised as income when sold on a cash basis. The financial statements do not include volunteer time as this cannot be reliably estimated. Retail income Retail income, including donated goods for sale in Scope shops, is recognised as income when the sale takes place. Investment income Investment income is accounted for when receivable.

50

Notes to the financial statements 1. Accounting policies (continued)

Legacies Legacy income is accounted for when the amount receivable is known at year end with reasonable certainty. Legacies to which Scope is entitled, but for which the value cannot be reliably measured as at the date these financial statements are approved, are not included in these financial statements.

Investments Investments are stated at market value. Net gains and losses that have resulted from both changes in holdings and in their market value are shown in the appropriate section of the statement of financial activities. Resources expended All resources expended have been accounted for on an accruals basis. Support costs, which are not directly attributable to generating funds or charitable activities, are allocated to those categories based on the appropriate combination of headcount, staff time and transaction volumes. Irrecoverable VAT is included with the expense item to which it relates. Charitable expenditure This includes all expenditure directly related to the objects of Scope and is comprised of:

Residential services for disabled adults – represents costs of providing accommodation and associated therapeutic and other support services for disabled adults. Domiciliary, outreach and day services for disabled adults – represents costs of providing various non-residential services for disabled adults, including life skills and personal development support. Education services – represents costs of running day and residential education services at schools for disabled children ranging from pre-school to secondary provision and for those aged between 19 and 25 at Beaumont College in Lancaster. Inclusion and transition services for disabled children and young people – represents costs of providing multidisciplinary care and respite services to support children in their family home, local community and school, as well as supporting young people from 18 to 25 to live with more independence as an adult.

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Notes to the financial statements 1. Accounting policies (continued)

Information, advice, employment and support services – represents costs of providing information and advice, supporting families through face to face networks and schools for parents particularly during pre-school years, as well as services to help disabled people to secure sustained integrated employment. Influencing and capacity building – represents costs relating to campaigning work with and for disabled people, and in strengthening disabled peoples’ organisations.

Support Costs Scope’s operating costs include staff costs, rent and other related costs. All costs are allocated between the costs of generating funds, activities in furtherance of the charity’s objects and other costs. Most costs incurred by Scope are directly attributable to individual activities. Where costs are not directly attributable to particular activities, they are apportioned pro rata to the total direct costs of activities or, in the case of shared offices costs, on the basis of the space occupied. Governance – Governance costs comprise company secretariat, AGM, membership, external and internal audit. The costs also include an allocation of indirect costs to cover support from the Chief Executive and other executive directors and service departments. Central administration costs, meeting expenses and AGM costs include expenditure required to support disabled Trustees and members to participate fully in the governance of Scope.

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Notes to the financial statements 1. Accounting policies (continued)

Tangible fixed assets Freehold properties are stated in the balance sheet at cost or if donated, at the value at the date of receipt, less depreciation. Tangible fixed assets are stated at cost less depreciation. No depreciation is charged on freehold land. The depreciation of other assets is provided in equal annual instalments over the estimated useful lives of the assets at the following rates: • Freehold land – no depreciation • Freehold property – 2% • Leasehold property and improvements to leasehold property – 2% or over the term of the lease if less than 50 years • Improvements to property – 6.66% • Motor vehicles – 20% • Fixtures and equipment – 20% • Computer equipment and Software – 25% or 33.33% The capitalisation threshold is £250 for IT equipment and £1,000 for all other assets. Property impairment Property assets are reviewed for indicators of impairment annually. Where an indicator of impairment exists the property value is considered against the recoverable market value. Where market value is lower than book value, an adjustment is charged to expenditure.

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Notes to the financial statements 1. Accounting policies (continued) Funds Scope maintains various types of funds as follows.

Restricted funds Restricted funds represent grants, donations and legacies received which are allocated by the donor for specific purposes. Endowment funds represent an investment fund from which Scope can make withdrawals in accordance with the conditions of the donor. Unrestricted funds General funds are funds that are expendable at the discretion of the Board of Trustees in the furtherance of the objects of Scope. Such funds may be held in order to finance both working capital and capital investment.

Leases Assets held under finance lease are capitalised at their fair value on the inception of the leases and depreciated over their useful lives or lease term if shorter. The finance charges are allocated over the periods of the leases in proportion to the capital amount outstanding. Operating lease costs are charged directly to the statement of financial activities in the period to which they relate. Stocks Stocks are stated at the lower of cost and net realisable value and is valued using the weighted-average method. Stocks of unsold donated goods are not valued for balance sheet purposes. Stock is annually reviewed and a provision made for stock that is unlikely to be sold. No provision was deemed necessary during in the year (2013: nil). Bond liabilities The Bond liability (“the Bond”) is the corporate bond, listed on the Luxembourg Stock Exchange, issued by Scope. The Bond is initially measured at the proceeds of issue less all transaction costs directly attributable to the issue. After initial recognition, the Bond is measured at amortised cost using the effective interest rate method. The fair value of the Bond disclosed within the notes to the Financial Statements is the market value of the Bond at the year-end date. The Group is not required to, and therefore does not, recognise any adjustment to fair value in the Balance Sheet and the Statement of Financial Activities.

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Notes to the financial statements 1. Accounting policies (continued) Pension costs In accordance with FRS17 Retirement Benefits, the Statement of Financial Activities includes: the cost of benefits accruing during the year in respect of current and past service (charged against net outgoing resources); the expected return on the scheme’s assets and the increase in the present value of the scheme’s liabilities arising from the passage of time, shown as pensions finance charge; actuarial gain recognised in the pension scheme (shown within net movement of funds). In accordance with FRS17, the scheme value is calculated taking assets at their year-end market values and liabilities at their actuarially calculated values discounted at year end AA rated corporate bond interest rates. The scheme surplus is disclosed as nil value under FRS17 balance sheet limitation. Further details regarding all pension schemes are disclosed in note 12. There are a number of defined benefit schemes which are multi-employer pension schemes and as such it is not possible to identify Scope’s share of the underlying assets and liabilities. Scope has therefore taken advantage of the FRS17 exemption from disclosing this information. Connected charities Mac Keith Press, a charity that is a separately incorporated entity, is under the control of Scope and therefore a wholly owned subsidiary, and whilst required to prepare its own financial statements, its results and assets and liabilities have been included in the consolidated accounts on a line by line basis. Learning Disabilities Resources was acquired in January 2014 for nil consideration. It is fully under the control of Scope and reports a financial year end of 31 October 2013. The results, assets and liabilities since acquisition have been included in the consolidated financial statements on a line by line basis. Related party disclosures Scope has taken advantage of the option conferred by FRS 8 Related Party Disclosures that allows it not to disclose transactions with subsidiaries. Irrecoverable VAT Any irrecoverable VAT is charged to the Statement of Financial Activities or capitalised as part of the cost of the related asset, where appropriate.

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Notes to the financial statements 2. Legacy income and donations and gifts Legacy income, for which confirmation of the amount has not been received as at the balance sheet date, has not been included in the incoming resources. The value of these legacies is estimated as £2,751,186 (2013: £682,615). Donations and gifts Group

2014 2013 £000 £000 Services 117 190 Voluntary fundraising 11,940 10,770

12,057 10,960

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Notes to the financial statements 3. Retail income

Group 2014

£000 2013 £000

Gift aid commission 1,401 1,189 Sale of donated and bought in goods 21,242 21,007 Raffles in shops 397 112 Other income - 256

23,040 22,564

4. Investment income

Group 2014

£000 2013 £000

Interest received on bank deposits 13 16 Income from listed investments 269 273

282 289

57

Notes to the financial statements 5. Grants receivable Unrestricted

funds £000

Restricted funds £000

2014 Total £000

2013 Total £000

Big Lottery Fund grants: Community Caf - 24 24 10 Friendly Advantage - 29 29 22 Recession Funding Scope Cymru - - - 6 Aspire Volunteering and Mentoring - 69 69 68 Face 2 Face Cymru Development - 92 92 61 Face 2 Face Dudley - 88 88 66 Face 2 Face Lancashire - 100 100 63 Silver Dreams – Our Generation - 100 100 92 Face 2 Face Evaluation - 20 20 - Other - 1 1 -

Total Big Lottery Fund grants - 523 523 388

58

Notes to the financial statements 5. Grants receivable (continued)

Unrestricted funds £000

Restricted funds £000

2014 Total £000

2013 Total £000

Local Authority grants: Activities Unlimited 400 15 415 456 Community Choice - 41 41 30 Face 2 Face Cornwall Services - 118 118 118 Scope Activities Leeds 155 - 155 - Sleep Solutions Cornwall - 27 27 - Swindon Living Options - - - 74 Walton Children’s Centre 145 203 348 313 Suffolk County Council - - - 38 Other Local Authority Grants < £20,000 4 (2) 2 27

Total Local Authority grants 704 402 1,106 1,056

59

Notes to the financial statements

5. Grants receivable (continued)

Unrestricted

Funds £000

Restricted

Funds £000

2014 Total £000

2013 Total £000

Central Government grants: Learning Together Toolkit - 36 36 63 Ingfield Manor School 624 - 624 28 Ingfield School Service - 126 126 75 Made to Measure DfE - 332 332 - DoH Partnership Project - 34 34 - Walton Children’s Centre 42 - 42 Other central government grants < £20,000 1 4 5 26

Total Central Government grants 667 532 1,199 192

60

Notes to the accounts 5. Grants receivable (continued)

Unrestricted funds £000

Restricted funds £000

2014 Total £000

2013 Total £000

Other grants: People’s Health Trust Community Organisers - 58 58 50 Work Choice Financial Incentive 89 - 89 255 People’s Health Trust Face 2 Face - 276 276 220 The Wooden Spoon Charity - - - 20 School for Parents - Ingfield 312 - 312 317 BBC Children in Need - 25 25 17 Cellular Philanthropy Project - 43 43 - Pears Foundation - 50 50 - North Wales ILM Employment - 25 25 - Scope Inclusion Norfolk - 23 23 - Other Grants < £20,000 21 17 38 114

Total Other grants 422 517 939 993

Total grants receivable 1,793 1,974 3,767 2,629

61

Notes to the financial statements 6. Subsidiaries’ income and costs The income and costs of Scope Central Trading Limited, Mac Keith Press and Learning Disabilities Resources Limited are stated below: Scope

Central Trading

£000

Mac Keith Press

£000

Learning Disabilities Resources

£000

2014 Total

£000

2013 Total

£000

Turnover 1,667 624 - 2,291 2,385 Cost of sales (941) (501) - (1,442) (1,446) Gross profit 726 123 - 849 939 Administration and other costs (13) (6) (4) (23) (17) Other operating income 126 - - 126 28

Operating profit 839 117 (4) 952 950 Taxation - - - - -

Net income 839 117 (4) 952 950 Amount gifted to the charity (839) - - (839) (871)

Surplus/(Deficit) - 117 (4) 113 79

• Income and expenditure generated by the subsidiaries has been incorporated into the appropriate sections in the Statement of Financial Activities, relating to the relevant department.

• As at 31 March 2014, Scope Central Trading had £100 net assets (2013: £100). This comprised assets of £388,188 (2013: £360,328) and liabilities of £388,088 (2013: £360,228). • Scope Central Trading Limited passed a resolution on 13 March 2014 that all undistributed profit would be paid by Gift Aid to Scope during the year in which it arises. This results

in no deferred tax charge arising to be paid on the 2013 / 2014 net profits. • As at 31 March 2014, Mac Keith Press had net assets of £253,942 (2013: £137,090). This comprised assets of £444,960 (2013: £480,540) and liabilities of £191,018 (2013:

£343,450). • Learning Disabilities Resources Ltd was acquired on the 1 February 2014, and the results for the period 1 February 2014 to 31 March 2014 are incorporated to the Group results.

At 31 March 2014 the subsidiary had net assets of £1. The last financial statements for Learning Disabilities Resources Ltd were made up to 31 October 2013.

62

Notes to the financial statements 7. Sales and other income from charitable activities

Group 2014

£000 2013 £000

Disability Now 61 161 Mac Keith Press and other book sales 615 578 Thorngrove Garden Centre 153 137 Other income from services 2,266 1,183 Rent receivable and other income 491 258

Total Sales and other Income 3,586 2,317

8. Governance Group 2014

£000 2013 £000

Company Secretariat, internal audit and membership costs 468 539 Audit fees 66 62 Meeting expenses and AGM 25 25 Legal and professional fees 11 16

570 642

The audit fee in the table is shown exclusive of VAT

63

Notes to the financial statements 9. Analysis of total resources expended and support costs Activities

undertaken directly

£000

Support

costs £000

2014 Total £000

2013 Total £000

The group Cost of generating funds:

Cost of generating voluntary income 7,674 886 8,560 8,524 Cost of goods sold and other costs 20,633 1,745 22,378 22,569 Investment management costs 12 4 16 34

Total cost of generating funds 28,319 2,635 30,954 31,127

Charitable activities: Residential services for disabled adults and young people 22,259 138 22,397 22,923 Domiciliary, outreach and day services for disabled adults 4,574 709 5,283 3,954 Education services 20,496 2,983 23,479 21,697 Inclusion and transition services for disabled children and young people

10,688 1,489 12,177 12,498

Information, advice, employment and support services 4,601 361 4,962 7,094 Influencing and capacity building 3,151 (226) 2,925 2,652 Total cost of charitable activities 65,769 5,454 71,223 70,818

Governance costs (note 8) 266 304 570 642 Pensions finance charge 548 - 548 723 Net total of resources expended 94,902 8,393 103,295 103,310

64

Notes to the financial statements 9. Analysis of total resources expended and support costs Management

overheads, HR and comms

Finance and purchasing

Information technology

Property and

facilities

2014 Total

2013 Total

Support costs £000 £000 £000 £000 £000 £000

Cost of generating funds Cost of generating voluntary income 298 375 45 168 886 903 Shop costs 1,025 648 72 - 1,745 1,822 Investment management costs 1 3 - - 4 8 1,324 1,026 117 168 2,635 2,733 Charitable activities: Residential services for disabled adults (1,052) 600 351 239 138 1,904 Domiciliary, outreach and day services for disabled adults

483 119 94 13 709 337

Education services 2,047 542 217 177 2,983 1,569 Inclusion and transition services for disabled children and young people

964 323 125 77 1,489 1,011

Information, advice, employment and support 109 107 80 65 361 342 Influencing and capacity building (401) 43 30 102 (226) 192 Total support costs – charitable activities 2,150 1,734 897 673 5,454 5,355 Governance costs 202 69 6 27 304 177 Total support costs for 2014 3,676 2,829 1,020 868 8,393 8,265

Total support costs for 2013 3,468 2,799 963 1,035

65

Notes to the financial statements 9. Analysis of total resources expended and support costs (continued) Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. Similarly, costs will be incurred in supporting income generation activities such as fundraising and in supporting the governance of the charity. Support costs include head office functions such as general management, payroll administration, budgeting and accounting, information technology, human resources, financing and property costs. The property costs of retail premises are categorised as direct costs of Shop costs. The basis of allocation for support costs are as follows: • Management overheads – 15 percent of total Executive Directors’ costs, including their administration support costs, is allocated to

governance. The balance is charged to the services under their responsibility. • Human resources costs are allocated based on the relevant staff being charged directly and the remaining costs on a headcount

basis. • Communications costs are charged on an expenditure basis. • Finance and purchasing services are allocated based on the relevant staff being charged directly and the remaining costs on an

expenditure basis. • Information technology costs are allocated based in the number of computers in use. • Property management costs are allocated on the basis of property related expenditure, with the exception of Retail which has an in-

house property function. • Shared office costs are allocated on the basis of floor space allocated to each department. Where there is a negative figure, there is a net recharge to other areas of the organisation. Residential services for disabled adults – Residential services provide support for all services through the regional offices. Influencing and capacity building – Communications and marketing support is provided to the rest of the organisation.

66

Notes to the financial statements 10. Net (outgoing) / incoming resources before other recognised gains and losses

Group 2014

£000 2013 £000

Net (outgoing) / incoming resources before other recognised gains and losses for the year are stated after charging / (crediting):

Auditors’ remuneration: Audit of these financial statements 60 56 Audit of the charity’s subsidiaries 6 6 Other services * 11 10 Interest payable on: Finance leases Property loan Bank overdraft

3 279

-

11 279

- (Profit) on the sale of fixed assets (142) (673) Depreciation of tangible fixed assets: Owned assets 2,127 2,062 Leased assets 304 317 Net pension finance cost 548 723 Operating lease rentals: Equipment 279 306 Property 5,958 6,136 Motor vehicles 122 88 Non-recoverable VAT 1,467 1,729

* Relates to actuarial advice for the Scope Pension Scheme

67

Notes to the financial statements 11. Information regarding employees and Trustees Group

2014 2013 Staff costs comprise: £000 £000 Wages and salaries 54,465 54,809 Social security costs 4,371 4,651 Bank Staff Other pension costs

2,240 747

1,969 630

61,823 62,059 Payments made to independent third parties for the provision of staff 1,516 1,358 Total payroll and staff related costs 63,339 63,417

2014 Number

2013 Number

Average number of employees (full-time equivalent) during the year: Residential services for disabled adults 645 634 Domiciliary, outreach and day services for disabled adults 115 103 Education services – schools 666 705 Inclusion and transition services for disabled children and young people 272 284 Information, advice, employment and support services 120 133 Influencing and capacity building 47 46 Governance 5 4 Retail staff 501 499 Voluntary fundraising staff 44 46 Support staff Bank staff

119 166

113 146

2,700 2,710

68

Notes to the financial statements 11. Information regarding employees and Trustees (continued) The number of senior staff whose total emoluments for the year (including taxable benefits in kind and redundancy payments, but not employer pension costs), exceeded £60,000 was:

2014 Number

2013 Number

£ 60,000 – £70,000 6 6 £ 70,001 – £80,000 4 9 £ 80,001 – £90,000 2 4 £ 90,001 – £100,000 3 3 £100,001 – £110,000 - 1 £110,001 – £120,000 - - £120,001 – £130,000 2 1 £130,001 – £140,000 1 1 Scope previously operated a final salary pension scheme and now has a stakeholder scheme as the main pension provision for new staff. The number of to whom retirement benefits are accruing under defined contribution schemes is sixteen and defined benefit schemes two. Scope also makes contributions to other approved schemes for certain staff. These are members of the Teachers’ Pension Scheme operated by the Department for Education and The Pensions Trust. Contributions paid for the year in respect of senior staff included in the table above for the different schemes, amounted to £55,214 (2013: £54,611). No Trustee or person closely related or connected by non-charitable trust or business to them, has received any remuneration or other benefit from Scope during the year other than as a beneficiary on non-preferential terms. During the year, the total of personal expenses directly or indirectly reimbursed to the Trustees amounted to £20,260 (2013: £21,363) for costs incurred in the furtherance of their duties as Trustees, and was paid to eleven (2013: fourteen) Trustees. Payments made to independent third parties for the provision of staff (see page 68) relates to costs incurred where established staff vacancies exist and cover is required pending recruitment, short term sickness cover and time limited projects.

69

Notes to the financial statements 12. Pension scheme Scope operates a number of pension schemes.

1) Scope operates a defined benefit pension scheme, The Scope Pension Scheme was closed to both new members and new accruals in 2007. Current membership of the scheme is 783 pensioners and 1132 deferred members. The Scheme is entirely separate of Scope's finances. Scope Pension Trustee Limited delegate services to a variety of bodies. Contributions to cover expenses and to recover the deficit in the scheme are paid to the scheme in accordance with the Schedule of Contributions agreed between the Trustee and Scope.

2) The defined contribution stakeholder pension plan was opened on 1st October 2003 when the Scope Pension Scheme was closed to new members. The stakeholder scheme was closed to further contributions on 30 June 2013. Contributions to the stakeholder pension plan for the period 1st April to 30 June amounted to £292,905 (2013: £389,035). On 1st July 2013, and in order to comply with Government legislation on Auto Enrolment, a defined contribution Group Personal Pension Plan was opened to replace the stakeholder pension plan. Employees were able to join on inception or under the rules of Auto enrolment with a deferred period of 3 months. There are 2,176 active members of the scheme.

The following schemes are multi-employer defined benefit schemes. As such it is not possible to identify Scope’s share of the underlying assets and liabilities. Scope has therefore taken advantage of the FRS17 exemption from disclosing this information and the accounting charge under FRS17 represents the employer contribution payable for the year.

3) The Pensions Trust’s Growth Plan (the Plan). The Plan is funded and is not contracted-out of the State scheme. The plan is currently in deficit

and from April 2013 Scope will contribute additional payments to reduce this deficit. In 2013/14 this payment was £196,504 (2012 / 13: nil). There are 3 active members of the scheme.

4) The Prudential Platinum Scheme is a defined benefit scheme related to a small number of staff who joined Scope in December 2010 under

TUPE. Scope’s contribution for the year was £24,465 (2013: £20,594). There are 3 active members of the scheme. 5) Scope also contributes to the Teachers’ Pension Scheme, a defined benefits scheme operated by the Department for Education in respect of

certain members of staff. Scope’s total contribution for the year in respect of this scheme was £367,898 (2013: £214,259). There are 47 active members of the scheme.

6) Scope also contributes to the Local Government Pension Scheme in respect of certain members of staff who joined Scope under TUPE. Scope’s

total contribution for the year in respect of this defined benefit scheme was £250 (2013: £335). There is 1 active member of the scheme. Additional details are provided for the primary schemes below:

70

Notes to the financial statements 12. Pension scheme (continued) 1) Scope Pension Scheme (continued) Scope operates a defined benefit pension scheme, the Scope Pension Scheme. The scheme funds are administered by Trustees and are independent of Scope’s finances. Contributions are paid to the scheme in accordance with the Schedule of Contributions agreed between the Trustee and Scope. The actuarial valuation as at 31 December 2011 was updated to the Scheme’s accounting date by an independent qualified actuary in accordance with FRS17. As required by FRS17, the value of the defined benefit liabilities has been measured using the projected unit method. Under FRS17, the pension asset which can be recognised on the balance sheet is limited to the extent that it is recoverable by the employer through reduced contributions for pensionable service and agreed refunds. Given that no refunds have been agreed and as no future service contributions are currently expected, the maximum asset that may be recognised is nil. The impact of this limit on the balance sheet and the actuarial gains and losses entry is also shown in the figures below. The expected rate of return on assets over the financial year ending 31 March 2014 was 3.1% pa (2013: 3.2% pa). This rate is derived by taking the weighted average of the long term expected rate of return on each of the asset classes that the plan was invested in at 31 March 2013, less administration expenses. The estimated amount of total employer contributions expected to be paid to the Scheme during the 2014/15 financial year, in accordance with the Schedule of Contributions agreed in September 2012, is £1.35m (2013: £1.35m). The Schedule of Contributions was produced following the completion of the 31 December 2011 actuarial valuation.

71

Notes to the financial statements 12. Pension scheme (continued) 1) Scope Pension Scheme (continued)

Assumptions

31 March

2014

31 March

2013

31 March

2012

RPI inflation 3.3% pa 3.4% pa 3.3% pa

CPI inflation 2.3% pa 2.4% pa 2.3% pa

Discount rate 4.4% pa 4.5% pa 4.8% pa

Pension increases (PPI – 3% pa minimum, 5% pa maximum) 3.7% pa 3.7% pa 3.7% pa

72

Notes to the financial statements 12. Pension scheme (continued) 1) Scope Pension Scheme (continued) On the basis of the assumptions used for life expectancy, a male pensioner currently aged 65 would be expected to live for a further 22 years (2012/13: 22 years) and a female pensioner aged 65 would be expected to live a further 25 years (2012/13: 24 years). Allowance is made for future improvements in life expectancy. Asset distribution and expected return:

31/03/2014 31/03/2013 Expected

return Fair

value Expected

Return Fair

value pa % £000 pa % £000

Equities 7.0 8,477 6.6 8,822

Gilts 3.0 71,673 2.6 73,791

Corporate bonds - - 4.3 4,202

Diversified growth funds 6.3 4,394 - -

Cash 1.0 741 0.2 259

Insured pensions 4.4 800 4.5 863

Total 86,085 87,937

73

Notes to the financial statements 12. Pension scheme (continued) 1) Scope Pension Scheme (continued)

Balance Sheet 31 March 2014 £000

31 March 2013 £000

Present value of Scheme liabilities 78,855 73,369

Total fair value of Scheme assets (86,085) (87,937)

Surplus (7,230) (14,568)

Adjustment to reflect asset limit 7,230 14,568

Pension liability - -

Under FRS17, the Scheme is represented on the balance sheet at 31 March 2014 as a £nil asset (2013: £nil asset).

The following amounts have been included as ‘Resources expended’ under FRS17.

31 March 2014 £000

31 March 2013 £000

Expected return on pension scheme assets (2,703) (2,613)

Interest cost 3,251 3,336

Net return to charge to finance income 548 723

74

Notes to the financial statements 12. Pension scheme (continued) 1) Scope Pension Scheme (continued) Changes in the present value of the Scheme liabilities are as follows:

31 March 2014 £000

31 March 2013 £000

Opening present value of Scheme liabilities 73,369 70,802

Interest cost 3,251 3,336

Actuarial loss / (gain) 4,524 1,885

Benefits paid (2,289) (2,654)

Closing present value of Scheme liabilities 78,855 73,369

Changes in the fair value of the Scheme assets are as follows:

At 31 March 2014 £000

At 31 March 2013 £000

Opening fair value of the Scheme assets 87,937 81,532

Expected return on Scheme assets 2,703 2,613

Actuarial (loss)/gain (3,616) 5,067

Contributions by the employer 1,350 1,379

Benefits paid (2,289) (2,654)

Closing fair value of the Scheme assets 86,085 87,937

The actual return on the Scheme’s assets over the year was a loss of £0.9 million (2012/13: gain of £7.68 million).

75

Notes to the financial statements 12. Pension scheme (continued) 1) Scope Pension Scheme (continued) The following amounts have been recognised under the ‘actuarial gains and losses on pension scheme assets and liabilities’ heading within the statement of financial activities. At 31 March 2014

£000 At 31 March 2013

£000 Actuarial losses/(gains) 8,140 (3,182)

(Gain)/loss due to movement in the asset limitation (7,338) 3,838

Actuarial loss recognised 802 656

The following amounts show the defined benefit obligation and fair value of plan assets:

At 31 March 2014

£000

At 31 March 2013

£000

At 31 March 2012

£000

At 31 March 2011

£000

At 31 March 2010

£000

Value of scheme liabilities 78,855 73,369 70,802 63,521 66,028 Fair value of scheme assets

(86,085)

(87,937)

(81,532)

(68,212)

(64,563)

(Deficit) / Surplus (7,230) (14,568) (10,730) (4,691) 1,465

76

Notes to the financial statements 12. Pension scheme (continued) 1) Scope Pension Scheme (continued)

The following amounts have been recognised under the ‘actuarial gains and losses on pension scheme assets and liabilities’ heading within the statement of financial activities for the current and previous four periods (figures are shown before adjustment for the balance sheet limit).

At 31 March 2014

£000

%

At 31 March 2013

£000

%

At 31 March 2012

£000

%

At 31 March 2011

£000

%

At 31 March 2010

£000

%

Experience adjustments on scheme assets:

Amount of (loss) / gain (3,616) 4 5,067 6 10,594 13 945 1 2,975 5

Gain / (loss) due to changes in assumptions underlying the present value of scheme liabilities (4,524) (6) (1,885) (2)

(5,947)

(7)

4,212

7

(16,265)

(25)

(Loss) / gain due to balance sheet limitation 7,338 (3,838)

(6,039)

(4,691)

10,808

Overstatement of scheme assets from prior years identified in current year - -

-

-

(238) Actuarial (loss) / gain (802) (1) (656) (1) (1,392) (2) 466 1 (2,720) (4)

The above percentages show the components as a percentage of the end of the year value of the scheme’s assets or liabilities, as appropriate.

77

Notes to the financial statements 12. Pension scheme (continued) 2) The Defined Contribution Pension Scheme. Members may contribute to the group personal pension at whatever contribution rate they wish subject to the HMRC rules relating to the maximum annual allowance and lifetime allowance. Scope contributes employers’ contributions to the auto enrolment pension scheme, not only in line with legislation but also on a basis of contributions matched by the employees’ contributions. The table below illustrates the contribution rates payable to the group personal pension plan and Employees are entitled to receive enhanced contributions (if they apply for them) based on their length of service. Membership Eligibility Scope Contribution % Employee Contribution % Basic 1% of qualifying earnings Employee to match 1% contribution of qualifying

earnings Upgrade - After 2 years’ service

3% of total earnings Employee must match the employer % contribution

Upgrade – After 4 years’ Service

6% of total earnings Employee must match the employer %contribution

Scope deducts employee contributions on a salary exchange basis approved by the HMRC unless the employee wishes to decline to use this arrangement. Details of the pension plan are provided to employees under the rules of auto enrolment or on request. Scope’s contributions to the old stakeholder scheme up to 30 June 2013 amounted to £292,905 and contributions to the new Auto Enrolment Pension Scheme from 1st July 2013 to 31st March 2014 amounted to £856,866 3) Pensions Trust Growth Plan As at the balance sheet date three members of the Plan were actively employed by Scope. Scope continues to offer membership of the Plan to its employees. Scope paid contributions at the rate of five percent during the accounting period. Members paid contributions at the rate of five percent during the accounting period.

78

Notes to the financial statements 12. Pension scheme (continued) 3) Pensions Trust Growth Plan (continued) The Plan’s Trustees commissions an actuarial valuation of the Plan every three years to determine the funding position of the Plan. Asset values are calculated by reference to market levels. Accrued past service liabilities are valued by discounting expected future benefit payments using a discount rate calculated by reference to the expected future investment returns. The rules of the Growth Plan give the Trustee the power to require employers to pay additional contributions in order to ensure that the pension scheme should have sufficient assets to meet its past service liabilities. If the actuarial valuation reveals a deficit, the Trustee will agree a recovery plan to eliminate the deficit over a specified period of time either by way of additional contributions from employers, investment returns or a combination of these. The rules of the Growth Plan state that the proportion of obligatory contributions to be borne by the Member and the Member’s Employer shall be determined by agreement between them. Such agreement shall require the Employer to pay part of such contributions and may provide that the Employer shall pay the whole of them. The valuation results at 30 September 2011 were completed in 2012 and the Scheme Actuary completed a funding position update as at 30 September 2011. This was updated in December 2012 and estimated the funding shortfall at £282.9m, a 21% increase from September 2011. As a result of the triennial valuation, the Growth Plan Trustee requires all employers with active members from before October 2001 to make additional contributions as of 1 April 2013. These additional contributions will be £196,504 per annum which will be payable in monthly instalments, together with the standard scheme contributions. The next full actuarial valuation will be carried out as at 30 September 2014. Following a change in legislation in September 2005 there is a potential debt on the employer that could be levied by the Trustee of the Plan. The Trustee’s current policy is that it only applies to employers with pre October 2001 liabilities in the Plan. The debt is due in the event of the employer ceasing to participate in the Plan or the Plan winding up.

79

Notes to the financial statements 12. Pension scheme (continued) 3) Pensions Trust Growth Plan (continued) The debt for the Plan as a whole is calculated by comparing the liabilities for the Plan (calculated on a buyout basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Plan. If the liabilities exceed assets there is a buyout debt. The leaving employer’s share of the buyout debt is the proportion of the Plan’s pre October 2001 liability attributable to employment with the leaving employer compared to the total amount of the Plan’s pre October 2001 liabilities (relating to employment with all the currently participating employers). The leaving employer’s debt therefore includes a share of any ‘orphan’ liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Plan liabilities, Plan investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy out market. The amounts of debt can therefore be volatile over time. Scope has been notified by the Pensions Trust of the estimated employer debt on withdrawal from the Plan based on the financial position of the Plan as at 31 December 2013. As of this date the estimated employer debt for Scope is £2.2m.

80

Notes to the financial statements 13. Tangible fixed assets for use by the group and charity

Freehold and leasehold property

Motor vehicles

Fixtures, equipment and

computers

Charity total Subsidiary fixtures,

equipment and computers

Group total

£000 £000 £000 £000 £000 £000 Cost At 1 April 2013 41,815 634 8,500 50,949 4 50,953 Additions 374 25 1,363 1,762 - 1,762 Disposals (36) - - (36) - (36) Transfers - - - - 1 1 At 31 March 2014 42,153 659 9,863 52,675 5 52,680 Accumulated depreciation At 1 April 2013 20,795 456 4,328 25,579 3 25,582 Charge for the year 750 94 1,587 2,431 - 2,431 Released on disposals (34) - - (34) - (34) Transfers - - - - - - At 31 March 2014 21,511 550 5,915 27,976 3 27,979 Net book value At 31 March 2013 21,020 178 4,172 25,370 1 25,371

At 31 March 2014 20,642 109 3,948 24,699 2 24,701

81

Notes to the financial statements 13. Tangible fixed assets for use by the group and charity (continued)

Group and Charity

Analysis of freehold and leasehold properties 2014 £000

2013 £000

Freehold 19,620 19,978 Long leasehold (over 50 years) 887 960 Short leasehold 135 82

20,642 21,020

Group and Charity

Of which the following are non-depreciated assets: 2014 £000

2013 £000

Land 171 171

Scope has not adopted the policy of revaluing its properties and the carrying amount of its tangible fixed assets are all at cost. Property values are considered for impairment in line with Scope’s impairment policy.

Scope owns certain categories of asset which are purchased under finance lease agreements, the net book value in respect of these assets is £209,000 (2013: £283,000).

82

Notes to the financial statements 14. Investments

Group and Charity 2014

£000 2013 £000

Total investments: Market value at 1 April 10,136 9,422 Additions at cost 7,074 1,190 Disposals at book cost (7,083) (1,299) Net movement in cash 235 - Net realised investment gains / (losses) 185 (14) Net unrealised investment gains 35 455 (Divestments) / Investments (1,557) 382 Market value at 31 March 9,025 10,136

Investments comprise the following: Investments listed on a UK stock exchange Fixed interest 3,371 4,258 Equities 1,847 1,169 Cash deposits held as part of investment portfolio 3,807 4,709

Market value at 31 March 2014 9,025 10,136

Being at market value: Investment assets in the United Kingdom 9,025 10,136

Historical cost at 31 March 2014 8,532 9,285

83

Notes to the financial statements 14. Investments (continued) The equity holdings are a held as a proportion of a fund, rather than direct share holdings, and so no single equity investment exceeds 5%. The Trustees consider the value of the investments to be supported by their underlying assets. There is no difference between market value and fair value as the investments are either fixed interest, equities or cash deposits and therefore market valuation is a fair indicator of fair value for these assets.

84

Notes to the financial statements 15. Subsidiaries

Subsidiary undertaking Country of registration and / or operation

Principal activities Authorised and issued share capital

Scope Central Trading Limited 100% direct holding

England and Wales Purchase of general merchandise and sale thereof to Scope, and the distribution and sale of clothing and gifts and sales of greeting cards

£100

Mac Keith Press Common control

England and Wales Publisher of a series of books covering issues relating to cerebral palsy and childhood disability, as well as a scientific journal

By Guarantee

Scope Pension Scheme Trustee Limited

England and Wales Dormant £100 – £2 issued and fully paid

Access Equality Limited 100% indirect holding

England and Wales Dormant £100 – £1 issued and fully paid

UK Federation for Conductive Education Limited Common control

England and Wales Dormant By Guarantee

The Spastics Society Common control

England and Wales Dormant By Guarantee

Scope Cerebral Palsy Limited Common control

England and Wales Dormant By Guarantee

Learning Disabilities Resources Limited

England and Wales Provision of independent special needs resources website and network

By Guarantee

85

Notes to the financial statements 16. Debtors Group Charity 2014

£000 2013 £000

2014 £000

2013 £000

Trade debtors 4,090 4,482 4,085 4,434

Gift Aid recoverable 530 960 530 960

Staff loans 104 68 104 68

Amounts due from subsidiaries - - 273 443

Accrued Income 1,142 374 1,128 360

Other debtors 429 593 505 615

Prepayments 2,431 2,164 2,412 2,150

8,726 8,641 9,037 9,030

Staff loans include season ticket loans of £57,000 (2013: £59,000), which are repayable over a 12 month period, and imprests of £9,000 (2013: £9,450) repayable on leaving Scope or when the nature of employment changes.

86

Notes to the financial statements 17. Creditors: amounts falling due within one year

Group Charity 2014

£000 2013 £000

2014 £000

2013 £000

Bank Overdraft - 238 - 236 Trade creditors 1,796 1,586 1,707 1,537 Obligations under finance leases 37 146 37 146 Taxation and social security 1,150 1,302 1,149 1,302 Deferred income (note 19) 966 1,000 897 997 Accruals and deferred income 2,240 3,119 2,209 3,032 Other creditors 278 60 325 77 Loans (note 21) 451 1,049 451 1,049

6,918 8,500 6,775 8,376

Any security on creditors is set out in note 21.

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Notes to the financial statements 18. Creditors: amounts falling due after more than one year Group and Charity 2014

£000 2013 £000

Obligations under finance leases (note 21) 13 86 Loans (note 21) 4,959 5,074 Bond (note 21) 2,000 2,000 6,972 7,160 19. Deferred income

Balance 31 March

2013 £000

Released from prior

year £000

Deferred in current

year £000

Balance 31 March

2014 £000

The Group: Fees 937 (894) 864 907 Book sales 3 (3) 19 19 Events fundraising 60 (253) 233 40

1,000 (1,150) 1,116 966

The Charity: Fees 937 (894) 814 857 Events fundraising 60 (253) 233 40

997 (1,147) 1,047 897

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Notes to the financial statements 20. Provisions for liabilities and charges

Balance 31 March

2013 £000

Charged to income and expenditure

£000

Spent

£000

Balance 31 March

2014 £000

Group: Provisions for dilapidations and onerous leases for offices vacated by Scope

67 - (16) 51

Provisions for dilapidations for shops vacated by Scope 136 142 (135) 143 Provisions for other vacant properties 44 - - 44 247 142 (151) 238

Balance 31 March

2013 £000

Charged to income and expenditure

£000

Spent

£000

Balance 31 March

2014 £000

Charity: Provisions for dilapidations and onerous leases for offices vacated by Scope

- - - -

Provisions for dilapidations for shops vacated by Scope 136 142 (135) 143 Other Provisions 44 - - 44 180 142 (135) 187

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Notes to the financial statements 21. Borrowings Group Charity 2014

£000 2013 £000

2014 £000

2013 £000

Finance lease obligations: Within one year or on demand 37 146 37 146 Over one year 13 86 13 86

50 232 50 232

Bond: Within one year - - - - Over One Year 2,000 2,000 2,000 2,000

2,000 2,000 2,000 2,000

Loans: Within one year 451 1,049 451 1,049 Between one and five years 1,723 1,387 1,723 1,387 Over five years 3,236 3,687 3,236 3,687

5,410 6,123 5,410 6,123

7,460 8,355 7,460 8,355

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Notes to the financial statements 21. Borrowings (continued) Finance lease obligations are for motor vehicles and for software purchased with a finance lease agreement. Included in the loan balances are the following items:

• A £20 million bond facility with BNY Mellon listed on the Luxembourg stock market, £2 million in cash was drawn down during the financial year 2012/13. Therefore the bond liabilities of £2 million represent the fair value of the amounts to be repaid for the bond.

• A number of philanthropic loans from individual supporters totalling £1 million. • A £6 million loan facility in 2009 from the Social Investment Business to develop new services for disabled children and young people. The

loans were used to develop ‘move on’ accommodation provision for disabled young people, specialist fostering and to develop classroom facilities to expand the education service at Ingfield Manor School to 16-19 year olds. £3,352,000 of this facility has been drawn down.

• A £265,000 loan from Charity Bank to purchase property for Ashurst Supported Living. This loan is secured against the property. • Mortgages on two properties totalling £231,000 (2013: £283,000)

Scope has a working capital overdraft facility of £0.5 million, secured against the Head Office property at Market Road, London.

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Notes to the financial statements 22. Funds

Balance

31 March 2013 £000

Incoming resources

£000

Expenditure gains and

losses £000

Transfers £000

Balance 31 March

2014 £000

The Group: Unrestricted funds 26,123 98,699 (100,279) 133 24,676 Restricted funds: Restricted funds 5,589 3,936 (3,598) (133) 5,794 Permanent endowment 10 - - - 10 Total funds 31,722 102,635 (103,877) - 30,480

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Notes to the financial statements 22. Funds (continued)

Balance 31 March

2013 £000

Incoming resources

£000

Expenditure gains and

losses £000

Transfers £000

Balance 31 March

2014 £000

Charity: Unrestricted funds 25,988 97,124 (98,774) 133 24,471

Restricted funds: Restricted funds 5,589 3,936 (3,598) (133) 5,794 Permanent endowment 10 - 10 Total funds 31,587 101,060 (102,372) - 30,275

The balance of the transfer of funds results from a correction to the brought forward balances. (In 2013 there were transfers from unrestricted funds to restricted funds to offset deficits of £213,000).

Restricted funds are comprised primarily of restricted grants (see note 5) and restricted donations received. These are all accounted for in accordance with the various limitations placed on each fund. No individual fund balance is material to the financial statements.

Unrestricted funds includes an investment revaluation reserve of £493,000 (2013: £851,000)

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Notes to the financial statements 23. Commitments

Annual cost of operating lease commitments Land and buildings Vehicles and Equipment Group 2014

£000 2013 £000

2014 £000

2013 £000

Leases which expire:

Within one year 1,783 2,090 15 3 Within two to five years 1,812 2,480 232 243 After five years 473 500 1 9

4,068 5,070 248 255

Capital Commitments

At 31 March 2014 there were no capital commitments (2013: £nil).

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Notes to the financial statements 24. Contingent liabilities Guarantees and commitments Scope has acted as guarantor for eight shop leases run by Capability Scotland, a charity providing services to disabled children and adults in Scotland. These guarantees were entered into during the period when Scope managed these shops on behalf of Capability Scotland. In the event of Capability Scotland defaulting on the payment under any of these leases Scope would be fully liable. The maximum liability in respect of the rental of these leases if terminated at 31 March 2014 would be approximately £490,787 (2013: £641,532). This does not include any potential liability for dilapidations. No provisions have been made in respect of these contingent liabilities in these financial statements. Scope has been notified by the Pensions Trust of the estimated employer debt on withdrawal from the Plan based on the financial position of the Plan as at 28 May 2013. As of this date the estimated employer debt for Scope is £2,165,571. There are no intentions to exit the Plan and so no provision has been made for this liability. 25. Taxation As a registered charity, Scope is exempt from taxation under Part 11, Chapter 3 of the Corporation Tax Act 2010. The group is not liable for taxation because of the policy of the trading subsidiary company to gift all taxable profits to Scope. During the year ended 31 March 2014 no charge to tax has been incurred.

95

Notes to the financial statements 26. Members The charity is incorporated as a company limited by guarantee having no share capital and, in accordance with the Memorandum of Association, every member, of which there are 668 (2013: 688), is liable to contribute £5 in the event of the company being wound up. 27. Analysis of assets and liabilities between funds

Restricted

funds £000

Unrestricted funds £000

Total 2014 £000

The Group: Fixed assets 1,377 32,349 33,726 Current assets 4,427 6,455 10,882 Current liabilities - (6,918) (6,918)

Net current assets / (liabilities) 4,427 (463) 3,964 Long term liabilities - (6,972) (6,972) Provisions for liabilities and charges - (238) (238)

Net assets 5,804 24,676 30,480

96

Notes to the financial statements 27. Analysis of assets and liabilities between funds (continued)

Restricted funds £000

Unrestricted funds £000

Total 2014 £000

The Charity Fixed assets 1,377 32,347 33,724 Current assets 4,427 6,058 10,485 Current liabilities - (6,775) (6,775)

Net current assets / (liabilities) 4,427 (717) 3,710 Long term liabilities - (6,972) (6,972) Provisions for liabilities and charges - (187) (187)

Net assets 5,804 24,471 30,275

97

Notes to the financial statements 28. Free reserves Group

2014 £000

2014 £000

2013 £000

2013 £000

Net assets 30,480 31,722 Less: Restricted funds (5,804) (5,599)

(5,804) (5,599) Less amount represented by tangible fixed assets (24,701) (25,371) Add back:

Net book value of tangible fixed assets held on finance leases 209 283 Other restricted fund fixed assets 1,377 1,574 Net book value of properties financed by loans 5,244 4,346

(17,871) (19,168)

Free reserves 6,805 6,955

29. Related Party Disclosures There are no transactions with related parties during the year ended 31 March 2014. Scope has taken advantage of the exemption within FRS 8 'Related Party Disclosures' allowing non-disclosure of transactions between group companies.

98

Notes to the financial statements 30. Ultimate Parent undertaking and controlling party The immediate parent undertaking is Scope.

The ultimate parent undertaking and controlling party is Scope, a company incorporated in England and Wales.

Scope is the parent undertaking of the largest group of undertakings to consolidate these financial statements at 31 March 2014. The consolidated financial statements of Scope are available from 6 Market Road, London, N7 9PW

Scope is the parent undertaking of the smallest group of undertakings to consolidate these financial statements. The consolidated financial statements of Scope are available from 6 Market Road, London, N7 9PW

99

Thank you to all our supporters, including: Ade Adepitan MBE Alastair Stewart OBE Anant Shah Anne Reece Benham Collectibles Limited BT Boden Building Societies Trust Limited Capital One (Europe) plc Cherie Booth CBE Clare Salmon Credit Suisse EMEA Foundation Edith Murphy Foundation Eveson Charitable Trust Field Fisher Waterhouse Foot Anstey Solicitors GlaxoSmithKline Hugh James Irwin Mitchell Solicitors Isabel Hudson Lady Caroline Jane Dawson (legacy gift) LaundryRepublic Neil Blackley

Nicolas Hamilton npower Pannone part of Slater & Gordon Paul and Kimberley Stevens Penningtons Manches LLP Peter Brewer Richard Bradbury CBE Richard Farr Richard Herring Safestore self storage Simon and Ingrid Sterling Simpson Millar LLP The Borrows Charitable Trust The Bowerman Charitable Trust The Dowager Countess Eleanor Peel Trust The Howard de Walden Estate The Jessie Spencer Trust The John Coates Charitable Trust TNS, Transport for London and ATOC (Association of Train Operating Companies) Virgin Media Vivien Fowle

100

Scope’s Directors and Trustees The Trustees who were in office during the year and up to the date of signing the financial statements are given below: Celia Atherton OBE (appointed October 2013) Ian Black (Treasurer, retired October 2013) Rebecca Hughes (retired October 2013) Agnes Fletcher (appointed October 2013) John Gilbert (Treasurer, appointed October 2013) Malcolm Hayday CBE (appointed October 2013) Tony Hunter OBE Rupy Kaur Alice Maynard (Chair) Kate James (retired October 2013) Richard Jones CBE Victoria McDermott (Vice-Chair) Geeta Nanda (retired October 2013) Amanda Phillips Gavin Poole Grethe Ridgway Hilary Samson-Barry Clare Thomas MBE (appointed October 2013) Rachael Wallach

101

Legal and administrative details Scope is a charitable company (Charity Registration Number 208231 and Company Number 520866). Independent Auditors: PricewaterhouseCoopers LLP, 7 More London Riverside, London SE1 2RT Solicitors: Bond Dickinson LLP, Prince’s Wharf, Teesdale, Stockton on Tees, TS17 6QY Bankers: National Westminster Bank plc, City of London Office, Corporate Business Centre, PO Box 12263, 1 Princes Street, London, EC2R 8PH Investment Advisers: Royal London Asset Management, 55 Gracechurch Street, London EC3V 0UF Company Secretary: Jacqui Penalver Registered Office: 6 Market Road, London, N7 9PW

102

Call 0808 800 3333 to let us know if you’d like this information in a format that’s accessible for you.

10623 Scope is a registered charity, number 208231. Copyright Scope August 2014