Red Cross Report

2011 Trustees’ report and accounts Patron Her Majesty The Queen President His Royal Highness The Prince of Wales KG KT GCB OM Deputy presidents Her Royal Highness Princess Alexandra The Hon Lady Ogilvy LG GCVO The Countess Mountbatten of Burma CBE CD JP DL Honorary vice-presidents Lord Barnard TD The Rt Hon Baroness Chalker of Wallasey Sylvia, Countess of Limerick CBE Professor John McClure OBE Mrs Elspeth Thomas CBE DL Vice-presidents Mr Anthony Andrews Ms Angela Rippon OBE Mrs Maria Shammas MBE Board of trustees Chairman Mr James M. T.Cochrane Vice-chairmen Mrs Victoria Peterkin Mr David Fall CMG Mrs Stella Cummings (from January 2012) Treasurer Mr Russell Walls (until September 2011) Mr David Howell (from September 2011) Other trustees Mrs Sue Brown Mr Stanley Fitches MBE Ms Amy Foan Mr Christopher Hedges (until December 2011) Mr Michael Herriot MBE Mr Steve John Mr Afzal Khan CBE (until October 2011) Lady Lamport Dr Lise Llewellyn Mr Gordon Low Dr J. Kay Richmond (until De cember 2011) Mr Graham Stegmann CBE Mr Paul Taylor (from January 2012) Mr Keith Shipman (from January 2012)Senior management team Chief executive Sir Nicholas Young Managing director of operations Michael Adamson Director of international David Peppiatt Director of UK service development Margaret Lally UK director, Scotland, Northern Ireland and the Isle of Man Territory Norman McKinley UK director, Northern Territory Jean Henderson UK director, Wales and Western Territory Annie Bibbings UK director, South Eastern Territory Liz Page Director of communications Philip Talbot Director of fundraising Mark Astarita Director of people and learning Roger Smith FCIPD Chef de cabinet Caroline Leighton Director of finance and business development Rohan Hewavisenti Sub-committees Finance and audit committee Mr David Howell, chairman (from September 2011) Mr Russell Walls, chairman (until September 2011) Mr James M. T. Cochrane Mr Stanley Fitches MBE Mr Gordon Low Mrs Liz Hazell Mr Anthony Pott s Mr Peter Bluck Remuneration committee Mr James M. T. Cochrane, chairman Mr Russell Walls until September 2011) Mr David Howell (from September 2011) Mrs Victoria Peterkin Mr David Fall CMG Ethical review panel Mrs Stella Cummings Mr Steve John Mr Graham Stegmann CBE External auditors BDO LLP Emerald House East Street Epsom Surrey KT17 1HS Bankers National Westminster Bank plc City of London Office PO Box 12258 1 Princes Street London EC2R 8PA Investment managers Lazard Asset Management Ltd 50 Berkeley Street London W1J 8HA Legal & General Investment Management One Coleman Street London EC2R BlackRock 33 King William Street London EC4R 9AS External legal advisers Withers 15 Old Bailey London EC4M 7EG Young mother Pearl, 21, became a volunteer after she and her extended family received support from the Red Cross in South Africa 1 ContentsChairman and chief executive’s statement Our aims Emergency response Health and social care Building resilience: first aid and humanitarian education Plans for 2012 Review of finances Structure and governance Independent auditors’ report to the trustees of the British Red Cross Society 4 5 6 8 10 12 14 16 19 22 44 I don’t think I could have managed. To know I could always pick up the phone and talk with Sue made the world of difference Volunteer Sue Whalley helped Ellis Sheldon and his wife cope with illness in their remote country home Accounts for the year ended 31 December 2011 Thank you 2 British Red Cross Trustees’ report and accounts 2011 3 Chairman and chief executive’s statement This year has shown us how easy it is for a movement of people to change the world, for good or ill.Summer riots in the UK, financial protests around the world and the fall of governments in the Middle East and Africa – they all relied on an instantly connected network of people acting as one, quickly and powerfully. Part of the Red Cross’ mission is to mobilise the power of humanity. If chaos an d violence are unfolding more quickly, then so must our ability to harness that power for good, saving and changing lives in the UK and overseas. As always, our volunteers and staff were at the sharp end of crisis around the world last year, from drought and famine in east Africa to severe weather in Scotland. We remain realistic about the external pressures and challenges facing us.A key focus for us has been the way the coalition government’s reforms and reviews are affecting our work – most notably the NHS reforms, cuts in the public sector and the Department for International Development (DFID) aid reviews. We have continued to develop our health and social care offer to be more consistent, integrated and focussed on what NHS commissioners’ needs are likely to be in the future. This is just one way we are making sure that our services are available for people adversely affected by changes or cuts. We also obtained unconditional registration for our ambulance work from the Care Quality Commission, which ensures we can continue to deliver a variety of ambulance services independently across England.In November we transferred our skin camouflage service to a new home at Changing Faces, a charity specialising in disfigurement. Over the last 36 years, this award-winning service has helped tens of thousands of people cope with disfiguring conditions and blemishes and Changing Faces is well placed to develop the service further, ensuring it continues to have a great impact on people’s lives. We offer our thanks to the dedicated and skilled volunteers and staff involved. The DFID aid reviews, and the work of the devolved administrations, have shown an increasing focus on preparing for emergencies in the UK and overseas, which represents a significant opportunity for us.Our ‘Ready for Winter’ campaign to ensure that people are prepared for severe weather, launched in partnership with the Scottish government, is a good exampl e of how we are meeting it. In these financially challenging times, we must make sure we maximise our fundraising potential to ensure our financial sustainability. Our compact with our supporters is that, as ever, we will keep our costs under control and make efficient and effective use of all our resources. We, and the more than a million people we help each year, rely on their generosity and trust. Thank you to all of our supporters, partners, volunteers and staff members for their vital contributions in 2011 – working together, we saved and changed people’s lives around the world. Our aims Our vision is of a world where everyone gets the help they need in a crisis.Our mission is to mobilise the power of humanity so that individuals and communities can prepare for, deal with and recover from a crisis. As the UK’s leading emergency response charity, 3,500 staff and 32,500 volunteers pursue these goals both here and overseas. Our work includes emergency response , health and social care, and building resilience (including first aid and humanitarian education). We operate both in our own right, and as part of the International Red Cross and Red Crescent Movement, the world’s largest humanitarian network, which has around 13 million volunteers across 188 countries. Our corporate strategy, Saving Lives, Changing Lives, sets the framework for our core activities between 2010-15. redcross. org. uk/movement redcross. org. uk/strategyOur plans for 2011 included: > strengthening our ability to respond to large emergencies across the whole of the UK > strengthening the quality of our services for refugees and asylum seekers > increasing the reach and quality of the International Federation of Red Cross and Red Crescent Societies’ disaster response > establishing our care in the home activity as the main focus of our UK health and social care work, integrating existing services with it where appropriate > building resilience, helping pe ople and communities prepare for and withstand disasters. James M. T. Cochrane Chairman of the board of trustees I feel I’m not only helping individual people, but helping the Red Cross and society in general After being made redundant, Ed Owen found a new lease of life as a care in the home volunteer Sir Nicholas Young Chief executive 4British Red Cross Trustees’ report and accounts 2011 5 Emergency response When an emergency strikes, we respond We launched seven emergency appeals in 2011, raising ? 21. 6 million to help people in east Africa, Japan, New Zealand, Pakistan, Turkey, the Libya region and the Ivory Coast region recover from famine, conflict, flooding and earthquakes. As tens of thousands of people displaced by civil war in Libya fled across the border to Tunisia in March, we sent experts in logistics and mass sanitation to support the International Red Cross and Red Crescent Movement’s response there. This helped prevent the outbreak of disease and sickness in the displacement camps.We also sent logistics delegates to support the Movement’s operations during violent clashes in Egypt and the food crisis in Kenya to make sure vital aid got to the people who new cases opened to help separated families get back in touch 610 30,000 people in the UK given first aid at 9,000 public events needed it, even in the most challenging environments. Following January 2010’s devastating earthquake in Haiti, we are halfway through a four-year recovery programme. Over the last year, we have helped 75,000 people recover their livelihoods through cash distribution, provided water and sanitation where there was none, and given 22,000 families safe and improved shelter. We started to build permanent housing to replace transitional shelters. In he midst of the recovery process, we also responded to a major cholera outbreak, treating 9,000 patients and operating five clinics and oral hydration units. Staff and volunteers responded to 4 ,200 (440 in Scotland) emergency response call-outs in the UK in 2011, in support of the emergency services. These ranged from fires and power cuts to an improvised explosive device in Omagh. The Red Cross volunteers provide an invaluable service to people at a time of great emotional need and stress. When they are looking after the families, it means the firefighters have one less factor to consider Mike Burroughs, Devon and Somerset Fire and Rescue Service ?3 million released from our Disaster Fund to help people affected by conflict or disasters in the UK and overseas 6British Red Cross Trustees’ report and accounts 2011 When severe weather in Scotland in December cut off many vulnerable people in remote locations, volunteers worked around the clock to distribute relief and support the Scottish Ambulance Service. We completed various reviews to ensure we can draw in the right numbers of volunteers and equipment from across the UK to respond in the event of a large emergenc y. Around a third of our services for refugees and asylum seekers, which helped 35,000 people (570 in Scotland), 22,300 of them destitute, are now accredited by the Office of the Immigration Services Commissioner, giving external assurance of their quality.We plan for the majority to be accredited by the end of 2012. redcross. org. uk/emergencyresponse redcross. org. uk/recovery I like the Red Cross because they give us biscuits and are teaching us how to improve our health James Losiru, ten, one of the children for whom our school feeding programme in Kenya is making a difference 27,000 people in the UK helped by us in an emergency 7 Health and social care We help vulnerable people recover from health or social crises, and live with dignity and independence in their homes We helped 397,000 people in the UK (28,000 in Scotland) this year when they could not cope at home alone, many of them after a stay in hospital or facing the risk of being admitted.This helped them retain their in dependence, and reduced admissions to hospitals and residential or nursing care. For example, our medical equipment loan service in southeast Wales made it possible for 280 patients to be discharged from hospital, averaging a saving of at least three bed days per patient. Ninety-one per cent of our health and social care service users reported that their experience was either good or excellent. We also began working towards the ambitious target of reaching 40 per cent more people in the UK with our health and social care services by 2014. As part of this work, we agreed 26 new health and social care developments in 2011. 75,000As the government progresses its social care reform agenda, we submitted written evidence to the health select committee, and developed proposals which will form the basis of an advocacy programme in 2012 to embed the voluntary sector’s role in tackling the UK’s care crisis. We work in partnership with other members of the International Red Cross and Red Crescent Movement across 16 countries to help communities tackle health and social crises – from people living with HIV in South Africa to young people rebuilding their lives after conflict in Sierra Leone. For example, we support a Kyrgyzstan Red Crescent programme to help vulnerable women build their livelihoods and be aware of their rights. This work includes an advocacy element, which contributed to a change in the law this year, whereby marriage registration is now compulsory.Previously, traditional unregistered marriages had left women who had been left by their husbands with no legal rights or standing. wheelchairs loaned to people to help them stay independent I’m very happy for the Red Cross’ help as they taught me how to take care of the kids, demonstrating how to give the pills when they first started taking their treatment. They supported me until I knew what to do Patricia lives in South Africa and cares for her four grandchildren, aged bet ween one and four, all of whom have either HIV or TB 7,700 volunteers in the UK delivering health and social care 8 British Red Cross Trustees’ report and accounts 2011 redcross. org. uk/healthandsocialcare redcross. org. uk/uksocialcare ulnerable people in the UK used our transport service to reach medical appointments or get other help with daily life 34,000 Now I feel more confident about getting out – and it’s so nice not to be stuck in the house all the time Sight-impaired Brenda Hall, from Llanelli, was visited for several weeks by a volunteer to help build her confidence and remain independent 9 Building resilience: first aid and humanitarian education We make communities more resilient by teaching people how to save lives and encouraging them to take action to help others of our volunteers are aged 18-26 (6,600 volunteers in total) 20% people learned about humanitarian issues and international humanitarian law through our education programmes 183,300 370 ,000 eople in the UK took one of our first aid courses in 2011, 61,000 of whom were from vulnerable groups A survey we ran this year showed that just 3 per cent of the UK population would be willing to invest a couple of hours in learning first aid, and 64 per cent fear the responsibility of having first aid skills. So in September 2011 we launched Everyday First Aid, a free online resource providing the simplest way possible to learn basic life-saving skills. Featuring videos, animation and reallife scenarios, the resource has been viewed by 199,000 people since its launch and supplements our range of face-to-face training courses. Ninety per cent of people who have taken one of our first aid courses felt more confident in using first aidThank goodness I had completed the first aid course, as the knowledge was still fresh in my mind. I just stopped panicking and started to slap her back. In less than a minute she was okay again Sayma put her training from our first aid course for m inority ethnic groups in Edinburgh into practice when her threeyear-old daughter began to choke as a result; and 76 per cent were more willing to use those skills in an emergency. We followed this up with the launch of our first mobile app, so that Android, BlackBerry and iPhone users have access to the same life-saving information on the move. The app was downloaded 127,300 times in 2011 and 185,000 by March 2012.Over the summer, we continued our Life. Live It. campaign, aimed at equipping 11 to 16-year-olds with first aid skills. Through a cinema trailer shown before the final Harry Potter film, we showed 2. 6 million people how to save an unconscious person’s life by pushing them on their side and tilting their head back so their airway is clear. We also took the same message to youth festivals around the country, with a series of ‘silent disco’ events, reaching around 5,000 young people. redcross. org. uk/firstaid redcross. org. uk/everydayfirstaid redcross. org. uk/app 6. 4 million people learned about first aid from us through public or media campaignsI realised I’d basically have to save someone’s life, which was a bit of a shock early on a Wednesday morning While on her way to a GCSE English exam, Hannah Niesser used her first aid training to give chest compressions to a collapsed man 11 10 British Red Cross Trustees’ report and accounts 2011 Plans for 2012 In 2012 we have committed that: 1. We will ensure we are fully prepared to meet the potential emergency response challenges presented by a year of major activity in the UK, including the Olympics, Paralympics and Queen’s Diamond Jubilee. 2. We will grow investment in international disaster response and increase the reach and impact of resilience programming with International Red Cross and Red Crescent Movement partners, particularly in Africa and South Asia. 3.We will teach first aid to 354,000 young people and adults, so they are more able, confident and willing to help someone in a crisis. 4. We will further strengthen the quality of our services for refugees and asylum seekers by achieving OISC accreditation for the majority of our services and seek institutional funding to meet some of the needs arising from the significant budget cuts of partners in the refugee sector. 5. We will continue to develop our health and social care services so we are on course to reach 40 per cent more beneficiaries by the end of 2014 with a choice of services that increase their ability to live independently for longer. 6.We will further strengthen our ability to measure the outcomes and impact of our work in the UK and internationally. Everything happened so quickly – it was really scary – so it was really good to have those friendly faces around Volunteers were on hand to provide mother-of-two Holly Gunning with emotional support and practical advice after her home was struck by lightning 12 British Red Cross Trustees’ rep ort and accounts 2011 13 Review of finances The organisation continued to grow, with total expenditure in 2011 increasing 16 per cent from ? 199. 2 million to ? 230. 9 million. This was supported by a 4 per cent increase in our total income to ? 213. 8 million. from regular giving increasing 21 per cent to ? 41. 9 million.Charitable expenditure Our charitable expenditure increased by 20 per cent to ? 159. 2 million in 2011 with the increase mostly in our emergency response activities. Continued support for the Haitian earthquake programmes, along with cash transfers made to support the Japanese earthquake response, resulted in our international emergency response expenditure increasing 74 per cent to ? 45. 4 million. We also invested further in our UK emergency response activities, increasing expenditure by 18 per cent to ? 24. 5 million. Expenditure on resilience programmes has increased 7 per cent to ? 39 million with the principal increase being in our work with National Societie s in other parts of the world.Our health and social care work is primarily UK-based and our expenditure on this activity decreased slightly to ? 41. 3 million. Expenditure on medical equipment services decreased by ? 3. 5 million to ? 12. 7 million due to the loss of a major contract for the provision of community equipment. This was offset by a ? 3. 4 million increase in our care and support programmes. Fundraising Voluntary income, which includes income from emergency appeals, fundraising, regular giving, cash donations and legacies, increased 10 per cent from ? 119. 9 million to ? 131. 5 million. Our individual supporters donated more than ever before, throughout challenging economic times, with incomeCharitable income Around 25 per cent of total income comes directly from charitable activities including first aid training fees, health and social care contracts and grants to support our international work. Our charitable income decreased 8 per cent to ? 52. 9 million, due to the loss of a major community equipment contract as well as a drop in grants to support our international work. Reserves Our reserves policy is set to ensure that there is no disruption of British Red Cross services in the event of an unforeseen reduction in income or increase in expenditure. The policy sets our minimum free reserves level at ? 15 million. As at 31 December, our free available reserves amounted to ? 41. 4 million (2010: ? 54. 7 million).We have changed many of our investments from equity to bonds to reduce the effects of market volatility on us. Together with tighter financial forecasting and reporting, this will enable us to plan for a lower level of reserves, allowing us to spend more helping people in need. This is consistent with our strategy, Saving Lives, Changing Lives, which outlines plans to draw down on our free available reserves by 2015. We plan to draw down ? 14. 8 million of reserves in 2012 and a further ? 6. 2 million in 2013. Pensions The British Red Cr oss operates two defined benefit pension schemes, which are both closed to new members. The net pension surplus reported in our accounts is ? 0. 7 million as at 31 December 2011 (2010 surplus: ? 1. million) and We prepare vulnerable groups, including women and children, for cyclones in Char Padma, Bangladesh the actuarial loss during the year was ? 1. 6 million (2010: ? 2 million gain). However, our latest actuarial valuations for funding purposes showed a net deficit of ? 4. 4 million. We also have contingent liabilities in relation to the membership of the Pension Trust’s Growth Plan. The British Red Cross has sole liability for ? 6. 5 million and joint liability with the Order of St John for estimated ? 3 million pension liabilities of the Joint Committee of the Order of St John of Jerusalem and British Red Cross Society. Investments As at 31 December 2011, we held fixed asset investments of ? 49. 1 million (2010: ? 58 million).Our investments reported net losses of ? 0. 6 million in 2011. An investment sub-committee of the finance and audit committee regularly reviews our investment portfolio and performs an annual review of our investment policy. Our investment objective is to seek yield subject to a requirement of capital preservation. The investment sub-committee has reviewed, and is satisfied with, the overall performance of the investment portfolio against its benchmarks. The British Red Cross will not directly invest in shares in, or commercial paper issued by, companies with a significant interest in the trading of arms or in the manufacture of tobacco products.However, it is recognised that the ethical investment policy cannot be applied when investing in pooled money market or investment funds. 14 British Red Cross Trustees’ report and accounts 2011 15 Structure and governance Legal status The British Red Cross was founded in 1870 and incorporated by Royal Charter in 1908. A Supplemental Royal Charter took effect on 1 January 1998 an d this was revised by HM the Queen in Council on 17 July 2003. The governing instruments under which the British Red Cross operates comprise this revised charter, the standing orders and other policies agreed from time to time by its governing body, the board of trustees.The legal objects of the British Red Cross, as laid out in its revised Royal Charter, are to provide assistance to victims of armed conflicts and to work for the improvement of health, the prevention of disease and the prevention and alleviation of human suffering in the UK and throughout the world. Organisation The board of trustees comprises nine elected members and up to eight members co-opted by the board itself. Newly elected and appointed trustees join the board at the start of the calendar year in most instances. Their terms of office last for three years, and they can serve two consecutive threeyear terms, after which they must stand down from the board for at least one year. A nominations group oversees rec ruitment of co-opted trustees. The recruitment of elected trustees is conducted via a national electoral college of eight volunteer council chairs. The board of trustees ratifies the result.The finance and audit committee oversees the organisation’s financial transactions. This committee has been given specific responsibilities and makes relevant recommendations to the board. While the approval of policy is a matter for the board, that body works closely with the chief executive and his colleagues on the senior management team, which is charged with the implementation of policy. A wholly-owned trading subsidiary, Britcross Limited, supports the fundraising activities of the British Red Cross. The assets, liabilities and trading results of this company, which is incorporated in the UK, are consolidated into the financial statements.The British Red Cross has eight Overseas Branches in British Overseas Territories and these have also been included in the financial statements. Th e British Red Cross is a member of the International Red Cross and Red Crescent Movement, with volunteers and staff contributing to a number of initiatives in both the International Federation of Red Cross and Red Crescent Societies (Federation) and the International Committee of the Red Cross (ICRC). Volunteers carry out a wide range of activities, including responding to emergencies, first aid, delivering health and social care and humanitarian education programmes, supporting refugees and asylum seekers, and fundraising.Without them, we could not carry out this life-saving and lifechanging work. The British Red Cross has more than 320 charity shops across the UK documented management systems, processes and procedures. The system of internal control and risk management is designed to: > The finance and audit committee reviews risk and internal controls and receives regular reports from senior management. > The committee approves the annual risk-based internal audit plan, which cov ers major risks as identified by management and trustees. It receives internal audit reports, regular progress reports and risk updates. Internal audit reports identify areas for improvement in the internal control, risk and governance environment. gt; Senior management reviews key strategic and operational risks on a regular basis. They consider progress on mitigating actions, new and emerging risks, and opportunities. > Management identifies, evaluates and manages risks within their areas from planning to delivery of service. Progress is reported quarterly via Risk management Achievement of the charity’s aims and objectives entails taking risks. The system of internal control is designed to manage risk to a reasonable degree rather than to eliminate all risk of failure relating to achieving aims and objectives. The trustees are responsible for ensuring the charity has effective risk management and internal control systems in place.The board reviews significant risks and ens ures reasonable measures have been taken to manage risks. Senior management has responsibility for managing resources, monitoring performance, and establishing and maintaining effective internal control systems. This is supported by clearly > identify and prioritise the strategic and operational risks to the achievement of the charity’s aims and objectives; > evaluate the likelihood of those risks being realised and their potential impact; and > manage these risks efficiently, effectively and economically. The trustees are satisfied that appropriate internal control systems and risk management processes are in place.They consider that the following framework provides the charity with adequate measures to reduce the impact of identified risks: 16 British Red Cross Trustees’ report and accounts 2011 17 Independent auditors’ report to the trustees of British Red Cross divisional and departmental updates. This is analysed and reported to senior management on a regul ar basis. > Board sub-committees and management groups help identify, evaluate and manage risks relating to fundraising, investments, business continuity, health and safety, remuneration, major infrastructure and IT projects, and operational needs including health and social care, emergency response and the Olympics.Work in this area is continuing with an improvement plan to further enhance the effectiveness of risk management activities and ensure consistency in its application across the charity. The most significant risks to the charity include the impact of government policy including the spending review, fundraising, reputation, security and safety of staff and volunteers, safety of beneficiaries, workforce capacity and capability, management information, IT infrastructure and the challenges of operating major relief programmes. > prepared the accounts on a going concern basis. Financial statements are published on the organisation’s website (redcross. org. k) in accorda nce with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The trustees’ responsibilities also extend to the ongoing integrity of the financial statements contained therein. Trustees participated in a range of development activities during the year. From visits to British Red Cross areas, services and events, to external conferences, the British Red Cross ensures its board members are kept abreast of developments in the sector, as well as given the opportunity to broaden their skills and experiences to assist them in discharging their duties effectively.Trustees’ responsibilities The trustees prepare consolidated financial statements for each financial year. These give a true and fair view of the state of the British Red Cross and of the annual results. In preparing the financial statements, the trustees have: > selected suitable accounting policies and applied them consistently; > made judgements and estimates that are reasonable and prudent; > followed applicable accounting standards without any material departures; Public benefit The board of trustees has given regard to the legislative and regulatory requirements for disclosing how its charitable objectives (as set out in our Royal Charter) have provided benefit to the public.The board of trustees has complied with the duty set out in Section 4 of the Charities Act 2011, and that set out by the Office of the Scottish Charity Regulator in the Charities and Trustee Investment (Scotland) Act 2005. This report outlines how our achievements during 2011 have benefited the public, either directly or indirectly. On behalf of the trustees We have audited the financial statements of the British Red Cross Society for the year ended 31 December 2011 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheets, the Consolidated Cash Flow Statement and the relat ed notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).This report is made solely to the charity’s trustees, as a body, in accordance with the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB’s website at www. frc. org. uk/apb/ scope/private. cfm. Opinion on financial statements In our opinion the financial statements: > give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 December 2011 and of the group’s incoming resources and application of resources for the year then ended; > have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and > have been prepared in accordance with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: > the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or James M. T. Cochrane Chairman of the board of trustees 28 March 2012 Respective responsibilities of trustees and auditor As explained more fully in the Trustees’ Responsibilities Statement (set out on page 18), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 144 of the Charities Act 2011 and report in accordance with regulations made under those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). 18 British Red Cross Trustees’ report and accounts 2011 19 > proper and sufficien t accounting records have not been kept; or > the parent charitable company’s financial statements are not in agreement with the accounting records or returns; or > we have not received all the information and explanations we require for our audit.BDO LLP Statutory Auditor Epsom United Kingdom Date: 28 March 2012 BDO LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). Guei, 24, was one of thousands of refugees from conflict in the Ivory Coast who the Red Cross helped with water and other essentials when they reached Liberia 20 British Red Cross Trustees’ report and accounts 2011 21 Accounts for the year ended 31 December 2011 Summary of income and expenditure for the year ended 31 December 2011 Consolidated statement of financial activities for the year ended 31 December 2011 2011 Total ? m 2010 Total ? m Unrestricted Notes ? Incoming resources Incoming resources from generated funds Voluntary income Trading activities Investment income Total incoming resources from generated funds Incoming resources from charitable activities Emergency response and recovery Resilience Health and social care Supporting the Movement Total incoming resources from charitable activities Other incoming resources Miscellaneous income Net gains on disposal of tangible fixed assets Total incoming resources Resources expended Costs of generating funds Voluntary income Trading activities Total resources expended on generating funds Restricted ? m 2 Income ? 213. 8m ca re in co m e E an me d rg re en co c ve y r ? 1 ry es 5. po 5m ns e R es ili en ce ac tiv iti es so ci al 94. 4 26. 5 0. 3 121. 2 37. 1 37. 1 131. 5 26. 5 0. 3 158. 3 119. 9 24. 8 0. 6 145. 3 S M up ov po ? em rt . 9 en ing m t th O e in th ve er st an m d en t Tr ad in g H ea lth 3 3. 3 14. 7 21. 0 0. 4 39. 4 3. 7 0. 8 0. 6 8. 4 13. 5 7. 0 15. 5 21. 6 8. 8 52. 9 9 . 3 15. 3 25. 1 7. 9 57. 6 .5 m Vo lu nt ar y 5m 6m an d 1. ?2 ? 8 . 8 31 ?1 ?2 ?7 m 6. m 0. 6 2. 0 163. 2 50. 6 0. 6 2. 0 213. 8 1. 1 1. 7 205. 7 44. 6 23. 6 68. 2 28. 2 31. 6 39. 7 2. 0 101. 5 2. 6 4 172. 3 (9. 1) (9. 1) 9 14 (0. 3) (0. 9) (1. 6) (11. 9) 7 7 110. 4 98. 5 0. 9 0. 9 41. 7 7. 4 1. 6 7. 0 57. 7 58. 6 (8. 0) (8. 0) 0. 3 (7. 7) 45. 4 37. 7 45. 5 23. 6 69. 1 69. 9 39. 0 41. 3 9. 0 159. 2 2. 6 230. 9 (17. 1) (17. 1) (0. 3) (0. 6) (1. 6) (19. 6) 155. 8 136. 2 40. 3 23. 5 63. 8 46. 36. 3 41. 4 8. 3 132. 8 2. 6 199. 2 6. 5 6. 5 (0. 2) 1. 7 2. 0 10. 0 145. 8 155. 8 Expenditure ? 230. 9m Su ca pp re ? 2 or . 6 tin m g th G e ov M er ov na em nc en e co t st s E an me d rg re en co c ve y r ry es po ns e C in os co t o m fv e o lu nt ar y ac tiv iti es so ci al Costs of charitable activities Emergency response and recovery Resilience Health and social care Supporting the Movement Total resources expended on charitable activities Governance costs Total resources expended Net (ou tgoing) / incoming resources before transfers Transfers between funds Net (outgoing) / incoming resources before recognised gains and losses Losses on urrent asset investments (Losses) / gains on fixed asset investments Actuarial (losses) / gains on defined benefit pension schemes Net movement in funds Total funds – 1 January Total funds – 31 December All the activities relate to continuing operations. R es ili en ce Tr ad in g 5m 6m 9m 9m 3m H ea lth ? 4 1. ?9 an d ?4 ?2 ?6 ?3 m 5. 3. 9. 7 22 British Red Cross Trustees’ report and accounts 2011 23 Consolidated balance sheet as at 31 December 2011 2011 ? m 64. 4 49. 1 113. 5 Current assets Stocks Debtors Investments Cash at bank and in hand 4. 2 30. 9 6. 6 4. 0 45. 7 Current liabilities Creditors: amounts falling due within one year Net current assets Total assets less current liabilities Creditors: amounts falling due in more than one year Provision for liabilities and charges Net assets before pension scheme s urplus Defined benefit pension scheme surplus Net assets 14 7 (20. ) 25. 7 139. 2 (0. 3) (3. 4) 135. 5 0. 7 136. 2 2010 ? m 63. 8 58. 0 121. 8 Consolidated cash flow statement for the year ended 31 December 2011 Notes Net cash (outflow) / inflow from operating activities (see below) Capital expenditure and financial investment 16 2011 ? m (13. 7) 3. 0 (10. 7) Decrease in current asset investments Decrease in cash 17 4. 3 (6. 4) 2010 ? m 8. 4 (19. 4) (11. 0) 9. 7 (1. 3) Notes Fixed assets Tangible fixed assets Investments 8 9 10 9 3. 3 29. 0 11. 2 10. 4 53. 9 Reconciliation of net incoming resources to net cash outflow from operating activities Net (outgoing) / incoming resources Depreciation charge Net gains n disposal of tangible fixed assets Increase in stocks Increase in debtors Increase in creditors Increase / (decrease) in provisions for liabilities and charges Net charges for defined benefit pension scheme Net cash (outflow) / inflow from operating activities Reconciliation of net funds to movement in short-term funds less borrowing Decrease in cash Decrease in current asset investments (6. 4) (4. 3) (10. 7) Losses on current asset investments (0. 3) (11. 0) Net short-term funds less borrowing at 1 January Net short-term funds less borrowing at 31 December 17 21. 3 10. 3 (1. 3) (9. 7) (11. 0) (0. 2) (11. 2) 32. 5 21. 3 (17. 1) 6. 7 (2. 0) (0. 9) (1. 9) 2. 6 0. 1 (1. 2) (13. 7) 6. 5 6. 5 (1. 7) (0. 4) (1. 5) 2. 0 (2. 2) (0. 8) 8. 4 11 (17. 4) 36. 5 158. 3 (0. 3) (3. 3) 154. 7 1. 1 155. 8 12 Funds: Restricted funds Unrestricted funds tangible fixed assets Defined benefit pension scheme fund Free available reserves Unrestricted funds Total funds 7 7 37. 7 56. 0. 7 41. 4 98. 5 136. 2 45. 4 54. 6 1. 1 54. 7 110. 4 155. 8 The accompanying notes form an integral part of these consolidated financial statements. The British Red Cross has not prepared a separate balance sheet for the charity as this is not considered to be materially different to the consolidated balance sheet. For and on behalf of the British Red Cross, James Cochrane Chairman, board of trustees 28 March 2012 David Howell Chairman, finance and audit committee 28 March 2012 24 British Red Cross Trustees’ report and accounts 2011 25 Notes to the consolidated financial statements for the year ended 31 December 2011 1. Accounting policies a) Scope and basis of the financial statements The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments at market value, and are in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (Revised 2005) (‘the SORP’), applicable accounting standards in the United Kingdom and the reporting requirements of the Charities Act 2011. The results and balance sheet of the British Red Cross’ subsidiary, Britcross Limited, have been consolidated on a line by line basis. Britcross Limited makes up accounts to 31 D ecember. Separate statements of financial activities and balance sheet have not been presented for the charity alone as these are not considered to be materially different from the consolidated statement of financial activities and consolidated balance sheet.The financial statements incorporate the results of all material activities overseas where the British Red Cross has operational responsibility. The results and net assets of Red Cross operations in eight British Overseas Branches have been included in the financial statements. (b) Fund accounting General unrestricted funds are available for use at the discretion of the trustees in furtherance of the general charitable objectives. A pension reserve is included within unrestricted funds to reflect the pension surplus. Restricted funds are donated for either a particular area or purpose, the use of which is restricted to that area or purpose. Such donations are principally for international purposes. c) Incoming resources All inco me is accounted for when the British Red Cross has entitlement to the funds, the amount can be quantified and there is certainty of receipt. Where income is received in advance of providing goods and/or services, it is deferred until the British Red Cross becomes entitled to that income. Unless there is evidence of uncertainty of receipt, residuary legacies are recognised from the date of probate where a reliable estimate of income can be made. Income from will or reversionary trusts is not recognised until the life interest has passed away. Income from pecuniary legacies is recognised upon notification. Disasters Emergency Committee (DEC) appeal income is recognised to the extent that resources have been committed on programmes funded through the DEC appeals.Gifts donated for resale are included as income when they are sold. Donated assets and services are included at the value to the British Red Cross where this can be reliably quantified. Donated services from our volunteers are not included within the financial statements. (d) Resources expended and basis of allocation of cost All expenditure is accounted for on an accruals basis. Direct costs are those specifically related to producing the output of an activity, for example the costs incurred in direct contact with beneficiaries. Support costs are those which provide indirect support to front-line output provision – examples are central finance, human resources and management information services.Support costs not attributable to a single activity have been allocated on a basis consistent with identified cost drivers for that cost category such as staff head count, floor space and expenditure. Governance costs relate to the direct running of the charity, allowing the charity to operate and generate the information required for public accountability. They include the costs of subscriptions related to membership of the International Red Cross and Red Crescent Movement, as well as the costs of trustee meetings and internal and external audits. (e) Tangible fixed assets and depreciation All tangible fixed assets costing more than ? 1,000 are capitalised and included at cost, including any incidental expenses of acquisition and irrecoverable VAT.Depreciation is provided on a straight-line basis over their useful economic lives as follows: Freehold properties Leasehold properties > Shop premises > Other premises Freehold premises improvements Leasehold premises improvements Ambulances Other vehicles Equipment and furniture Computer equipment and software Freehold land Assets in course of construction 50 years the shorter of the term of the lease and five years the shorter of the term of the lease and 50 years ten years the shorter of the term of the lease and ten years seven years five years five years between one and three years nil nil (f) Pensions The defined benefit pension scheme current service costs, together with the scheme interest cost less the expected return on the sche me assets for the year, are charged to the relevant expenditure heading within the consolidated statement of financial activities in line with the salary costs of the related employees. The defined benefit scheme assets are measured at fair value at the balance sheet date.Scheme liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term to the scheme liabilities. The change in value of assets and liabilities arising from asset valuation, changes in benefits, actuarial assumptions, or change in the level of deficit attributable to members is recognised in the consolidated statement of financial activities within actuarial gains/losses on defined benefit pension schemes. The resulting defined benefit asset or liability is presented separately on the face of the balance sheet.The British Red Cross recognises assets for its d efined benefit pension schemes to the extent that they are considered recoverable with reference to expected future current service costs for active scheme members. Pension costs in respect of defined contribution schemes are charged to the consolidated statement of financial activities for the period in which they are payable. (g) Investments Investments are stated at market value at the balance sheet date and the consolidated statement of financial activities shows net investment gains and losses arising from revaluation of the investment portfolio and disposals during the year. (h) Stocks Stocks are stated at the lower of cost and net realisable value. Provision is made for obsolete, slow-moving or defective stock where appropriate.Items donated for resale and distribution are not included in the financial statements until they are sold or distributed. Emergency stocks held for disaster response are transferred from stock to resources expended when issued from the warehouse. (i) Value added tax Irrecoverable value added tax is allocated to the category of expenditure to which it relates. (j) Provisions Provisions are recognised when the British Red Cross has a legal or constructive financial obligation, that can be reliably estimated and for which there is an expectation that payment will be made. (k) Operating leases Rentals under operating leases are charged on a straightline basis over the lease terms, even if the payments are not made on such a basis.Benefits received and receivable as an incentive to sign an operating lease are, similarly, spread on a straight-line basis over the lease term, except where the period to the review date on which the rent is first expected to be adjusted to the prevailing market rate is shorter than the full lease term, in which case the shorter period is used. (l) Foreign currencies The British Red Cross uses forward exchange contracts to hedge some of its known foreign exchange exposure. Transactions in foreign currencie s are recorded at the rate of exchange prevailing at the date of the transaction, except where a forward contract is in place, in which case the rate specified in the contract is used.Monetary assets and liabilities are translated into sterling at the exchange rate ruling on the balance sheet date, except where a forward contract is in place, in which case the relevant asset/liability is translated at the rate contained in the contract. Foreign exchange gains are recognised as other income and foreign exchange losses are recognised in the consolidated statement of financial activities within the relevant charitable activity expenditure for the period in which they are incurred. 26 British Red Cross Trustees’ report and accounts 2011 27 Notes to the consolidated financial statements for the year ended 31 December 2011 2. Voluntary income Unrestricted ? Regular giving Public donations, appeals and fundraising Service donations Gift aid Legacies Disasters Emergency Committee app eals Grants Total 41. 9 19. 0 2. 4 12. 3 18. 8 94. 4 Restricted ? m 26. 0 0. 1 1. 8 0. 9 8. 3 37. 1 2011 Unrestricted Total ? m 41. 9 45. 0 2. 5 14. 1 19. 7 8. 3 131. 5 34. 6 17. 6 2. 4 10. 5 21. 5 86. 6 Restricted ? m 20. 7 0. 1 1. 8 0. 6 8. 4 1. 7 33. 3 2010 Total 34. 6 38. 3 2. 5 12. 3 22. 1 8. 4 1. 7 119. 9 Costs of generating funds Voluntary income Trading activities 44. 3 22. 9 67. 2 Charitable activities Emergency response and recovery UK International 23. 1 44. 6 67. 7 Resilience UK International 25. 8 10. 8 36. 6 2011 Total ? m 3. 9 3. 1 7. 0 14. 9 0. 6 15. 5 6. 9 14. 7 21. 6 8. 8 52. 9 2010 Total ? m 3. 0 6. 3 9. 3 Governance costs 0. 2 0. 0. 8 Health and social care Medical equipment services Care and support programmes 0. 3 3. 5 3. 8 Supporting the Movement Total 7. 2 15. 7 14. 7 14. 7 6. 6 11. 2 17. 8 1. 6 37. 2 0. 6 0. 5 1. 1 0. 3 3. 3 3. 6 6. 2 17. 2 14. 0 0. 2 14. 2 10. 7 10. 8 21. 5 1. 7 40. 4 14. 6 0. 7 15. 3 11. 0 14. 1 25. 1 7. 9 57. 6 Total 220. 6 10. 3 230. 9 1 99. 2 Subscriptions to Federation Staff Fees to auditors for audit of financial statements Fees to auditors for other services Other 1. 9 0. 3 0. 1 0. 2 2. 5 0. 1 0. 1 1. 9 0. 3 0. 1 0. 3 2. 6 1. 6 0. 6 0. 1 0. 3 2. 6 Health and social care Medical equipment services Care and support programmes 11. 8 25. 9 37. Supporting the Movement 8. 9 150. 9 0. 9 2. 7 3. 6 0. 1 8. 3 12. 7 28. 6 41. 3 9. 0 159. 2 16. 2 25. 2 41. 4 8. 3 132. 8 2. 1 0. 3 2. 4 27. 9 11. 1 39. 0 25. 2 11. 1 36. 3 1. 4 0. 8 2. 2 24. 5 45. 4 69. 9 20. 7 26. 1 46. 8 1. 2 0. 7 1. 9 45. 5 23. 6 69. 1 40. 3 23. 5 63. 8 4. Resources expended Direct costs ? m Support costs ? m 2011 Total ? m 2010 Total ? m Legacy income is not recognised until the British Red Cross has entitlement to the funds, the amount can be quantified and there is certainty of receipt. The estimated value of legacies, which have been notified but not recognised at 31 December 2011, was ? 7. 4 million (2010: ? 9. 2 million) of which ? . 4 million (2010: ? 6. 6 million) are assets bequeathed to the British Red Cross, but subject to life tenancy. Disasters Emergency Committee (DEC) appeal income is recognised to the extent that resources have been committed on programmes funded through the DEC appeals. Subject to our agreed allocation, the value of DEC appeal income not drawn down or accrued for at 31 December 2011 was ? 2. 6 million (2010: ? 5. 5million). 3. Incoming resources from charitable activities Grants ? m Emergency response and recovery UK International 0. 8 3. 1 3. 9 Resilience UK International Other ? m 3. 1 3. 1 Grants ? m 0. 2 6. 1 6. 3 Other ? m 2. 8 0. 2 3. 0 Supporting the Movement’ grant income is mainly from the Department for International Development (DFID). ?1. 2 million (2010: ? 1. 1 million) was received as part of our Partnership Programme Agreement (replacing the Strategic Framework Agreement), which provides core funding for our international work to strengthen further the effectiveness of the Intern ational Red Cross and Red Crescent Movement as a key pillar of the international humanitarian system. ?6. 0 million (2010: ? 5. 1 million) was received as part of our Institutional Strategy agreement with the International Federation of Red Cross and Red Crescent Societies (IFRC), which provides funding for their programmes and operations.The charity v has supported our youth volunteering, Future Jobs Fund and National Citizen Service activities. The income for 2011 is ? 187,000 (2010: ? 90,000). The basis of allocation of support costs is described in note 1(d) and further analysis is provided in note 5. Our total resources expended includes irrecoverable VAT of ? 2. 9m (2010: ? 2. 1m). Included under 2011 direct costs are grants to the International Federation of Red Cross and Red Crescent Societies (IFRC) and International Committee of the Red Cross (ICRC) of ? 20. 1 million (2010: ? 19. 5 million) and grants to other National Societies of ? 22. 2 million (2010: ? 6. 6 million). 28 British Red Cross Trustees’ report and accounts 2011 29Notes to the consolidated financial statements for the year ended 31 December 2011 5. Support costs by activity Cost of generating funds Emergency response Supporting and Health and the recovery Resilience social care Movement Governance 2011 Total 2010 Total 7. Funds Balance 1 January 2011 Net investment gain / Expenditure (losses) Actuarial losses on defined benefit pension Balance 31 December Transfers 2011 ?m ?m ?m ?m ?m ?m ?m 2. 6 3. 7 3. 6 0. 4 ?m 2. 4 3. 6 Total UK restricted funds Total unrestricted funds ?m Income ?m ?m ?m ?m ?m ?m Finance Human resources and central facilities Management information services Central management Total 0. 8 0. 6 0. 4 0. 1 1. 9 0. 9 0. 6 0. 6 0. 1 2. 0. 5 0. 9 0. 9 0. 1 2. 4 0. 4 1. 6 1. 5 0. 1 3. 6 0. 1 0. 1 0. 1 0. 1 110. 4 163. 2 (172. 3) (1. 2) (1. 6) – 98. 5 17. 1 9. 0 13. 3 22. 3 6. 0 45. 4 155. 8 3. 8 4. 9 14. 4 26. 9 46. 2 0. 6 50. 6 213. 8 (6. 8) (7. 2) (14. 2) (2 7. 4) (48. 8) (3. 0) (58. 6) (230. 9) 0. 1 0. 2 0. 2 0. 3 (0. 9) (1. 6) (0. 5) (0. 5) 0. 5 – 14. 2 6. 7 0. 2 12. 5 19. 4 4. 1 37. 7 136. 2 3. 4 0. 4 9. 8 Haiti earthquake Japan Other international restricted funds Total international restricted funds Disaster Fund Total restricted funds Total funds 10. 3 Support costs have been allocated on the basis of the accounting policy set out in note 1 (d). 6. Trading subsidiaryBritcross Limited, the British Red Cross’ wholly owned trading subsidiary incorporated in the United Kingdom, engages in the sale of cards and gifts as well as corporate sponsorship in aid of the British Red Cross. The turnover and expenditure included within trading activities are: 2011 ? m Turnover Expenditure Net income donated to British Red Cross The assets and liabilities of Britcross Limited consolidated within the balance sheet are: Current assets Current liabilities Net assets 1. 4 (0. 9) 0. 5 2011 ? m 0. 8 (0. 8) 2010 ? m 1. 4 (0. 9) 0. 5 2010 ? m 0. 7 (0. 7) – Restricted funds Expenditure plans have been agreed for all material restricted funds. Funds are held in appropriate asset categories in accordance with planned usage. UK restricted funds UK restricted funds include: > ? million of properties and other tangible fixed assets held for restricted purposes > a variety of local, national and European funding sources to deliver projects over the next 2-3 years > legacies with a geographical and/or service restriction. The balance of UK restricted funds is held for the provision of locally agreed services. International restricted funds Significant programmes of work are planned for the disbursement of international restricted fund balances as at 31 December 2011. Other international restricted funds include: > ? 2. 4 million of stock for international programmes > ? 1. 5 million represented by net assets of the Overseas Branches. Disaster Fund The Disaster Fund allows us to prepare for and respond to humanitarian d isasters abroad and in the UK.We fundraise specifically for the Disaster Fund and, as stated on emergency appeal materials, it can also contain funds donated to emergency appeals where we raise more than can be reasonably and efficiently spent on that specific response. 30 British Red Cross Trustees’ report and accounts 2011 31 Notes to the consolidated financial statements for the year ended 31 December 2011 8. Tangible fixed assets Freehold property ? m 45. 9 0. 1 2. 5 (0. 5) 48. 0 Vehicles, Assets in the Leasehold equipment course of property and furniture construction ? m ? m ? m 34. 2 0. 1 (0. 5) 33. 8 41. 2 0. 3 3. 5 (1. 1) 43. 9 0. 6 (0. 5) 2. 0 2. 1 Total ? m 121. 9 8. 0 (2. 1) 127. 8 9. InvestmentsFixed assets investments Market value – 1 January 2011 Additions at cost Disposals at market value Net investment losses in the year Market value – 31 December 2011 Cost – 31 December 2011 Total ? m 58. 0 3. 0 (11. 3) (0. 6) 49. 1 47. 1 Cost At 1 Januar y 2011 Completions Additions Disposals At 31 December 2011 Accumulated depreciation At 1 January 2011 Charge Disposals At 31 December 2011 Net book value At 31 December 2011 At 31 December 2010 13. 1 1. 8 (0. 2) 14. 7 11. 6 1. 1 (0. 2) 12. 5 33. 4 3. 8 (1. 0) 36. 2 – 58. 1 6. 7 (1. 4) 63. 4 The portfolio consists of the following: UK equities Overseas equities UK fixed income Market value 2011 ? m 7. 8 5. 9 35. 4 49. 1 Per cent of Market value 2011 2010 portfolio ? m 16% 12% 72% 86. 0 6. 3 43. 1 58. 0 Per cent of 2010 portfolio 15% 11% 74% 33. 3 32. 8 21. 3 22. 6 7. 7 7. 8 . 1 0. 6 64. 4 63. 8 The following investments represented more than 5 per cent of the value of the portfolio at 31 December 2011 Lazard Thematic Global Institutional Share Class Legal & General CAF UK Equitrack Black Rock Ultra Short Bond Fund Number of units 67,350 12,988,700 287,196 Market value ? m 5. 9 7. 5 35. 4 Per cent of portfolio 12% 15% 72% Current asset investments Royal Bank of Scotland Global Treasury Funds plc BlackRock – Institutional Sterling Liquidity Fund 2011 ? m 6. 2 6. 2 2010 ? m 4. 1 1. 0 5. 1 5. 4 0. 7 11. 2 Deposits Investment property in the UK Total 0. 4 6. 6 32 British Red Cross Trustees’ report and accounts 2011 33Notes to the consolidated financial statements for the year ended 31 December 2011 10. Debtors 2011 ? m Trade debtors Accrued income Other debtors Prepayments Tax recoverable Legacies receivable Total 4. 6 6. 9 1. 0 3. 5 4. 4 10. 5 30. 9 2010 ? m 6. 5 4. 7 0. 4 3. 3 4. 0 10. 1 29. 0 At 31 December 2011 Amounts expected to be incurred: – within one year – beyond one year 1. 1 1. 1 1. 3 1. 0 2. 3 2. 4 1. 0 3. 4 1. 1 2. 3 3. 4 At 1 January 2011 Payments during the year Increase in provision 12. Provisions for liabilities and charges Rehabilitation Leasehold commitments dilapidations ? m ? m 1. 2 (1. 2) 1. 1 2. 1 (1. 5) 1. 7 Total ? m 3. 3 (2. 7) 2. 8 All amounts shown under debtors fall due for payment within one year. 11 .Creditors: amounts falling due within one year 2011 ? m Trade creditors Accruals Other creditors Deferred income Taxes and social security costs Total 3. 3 12. 0 1. 2 1. 9 1. 6 20. 0 2010 ? m 2. 1 10. 9 1. 1 2. 0 1. 3 17. 4 The provision for rehabilitation commitments as at 31 December 2011 includes amounts committed in Haiti for livelihood grants. Leasehold dilapidations relate to properties where the British Red Cross has a legal responsibility as tenant for such costs. 13. Staff emoluments and trustee expenses Total staff emoluments (including casual staff) for the year were as follows: Salary costs National insurance costs Pensions costs 2011 ? m 68. 7 5. 1. 0 75. 6 2010 ? m 63. 0 5. 4 1. 2 69. 6 Movements in deferred income during the year were as follows: At 1 January Income recognised during the year Income deferred during the year At 31 December 2011 ? m 2. 0 (2. 0) 1. 9 1. 9 2010 ? m 2. 6 (2. 6) 2. 0 2. 0 The number of employees whose emoluments, as defined for taxation pu rposes (basic pay, vehicle and medical insurance benefits), amounted to over ? 60,000 in the year were as follows: ? 60,001 – ? 70,000 ? 70,001 – ? 80,000 ? 80,001 – ? 90,000 ? 90,001 – ? 100,000 ? 100,001 – ? 110,000 ? 110,001 – ? 120,000 ? 170,001 – ? 180,000 ? 180,001 – ? 190,000 2011 6 6 3 5 1 2 1 2010 8 6 5 2 1 1 1 –Five (2010: five) of the above employees have retirement benefits accruing to them under defined benefit pension schemes. The total cost of the contributions to these defined benefit schemes made by the British Red Cross for these employees was ? 106,000 (2010: ? 94,000). Thirteen (2010: fourteen) of the above employees are members of a defined contribution scheme. The total cost of the contributions to this scheme made by the British Red Cross for these employees was ? 81,000 (2010: ? 61,000). 34 British Red Cross Trustees’ report and accounts 2011 35 Notes to the consolidated financial statement s for the year ended 31 December 2011 13. Staff emoluments and trustee expenses (continued)The average number of full-time equivalent staff employed by the British Red Cross during the year was as follows: In the UK Fundraising Retail UK services First aid services International services Other Overseas International services Total employed by FTE Total employed by headcount The average number of volunteers working for the British Red Cross during the year was as follows: In the UK Fundraising Retail UK services First aid services International services Total Trustees’ expenses: Expenses incurred by trustees and reimbursed by the British Red Cross Expenses incurred by the British Red Cross on behalf of trustees Trustees’ indemnity insurance cover cost 2011 171 547 1,475 405 72 280 65 3,015 3,547 2010 147 544 1,417 379 66 249 54 2,856 3,364 14. PensionsNew British Red Cross staff are entitled to join either the Pensions Trust’s Unitised Ethical Plan or the Pension s Trust’s Flexible Retirement Plan. Staff had previously been entitled to join the British Red Cross Pension Fund (â€Å"UK Office scheme†), Scottish Branch British Red Cross Society Retirement Benefits Scheme (â€Å"Scottish scheme†) or the Pensions Trust’s Growth Plan. These three schemes are all closed to new entrants. UK Office and Scottish defined benefit pension schemes The assets of these pension schemes are held in separate trustee-administered funds. The schemes are subject to triennial valuations with the last full valuation being carried out as at 31 December 2010 for the UK Office scheme and 1 January 2009 for the Scottish scheme.These valuations were updated at 31 December 2010 and 2011 by independent actuaries on a Financial Reporting Standard 17 – Retirement Benefits (FRS 17) b

Ex Post Facto Laws Essay

Ex post facto laws refer to laws that apply to acts committed before the enactment of such laws and are, therefore, disadvantageous to the affected persons. The United States constitution in article I, section 10 prohibits the state from enacting such retroactive laws. This prohibition protects individuals from unjust legislative acts. However, the ban on ex post facto laws applies only with regard to criminal and not civil laws (Zollar, 2002). I believe that the US constitution is reasonable and consistent by containing provisions that limit the enactment of ex post facto laws since this help in safeguarding the rights of individuals under existing laws. If the constitution did not contain the ex post facto clause, individuals would be unfairly subjected to laws that act retrogressively and deny them justice. For instance, an adult should not be prosecuted for crimes he committed when he was a minor if such crimes could not be instituted against him at that time due to limitation on juvenile court jurisdiction. I concur with the authors of the ex post facto clause that laws should not be applied retroactively. However, where the rule cannot be reasonably applied, various exceptions should be incorporated to make the rule workable. Like every other rule, I believe that it is important for the ex post facto clause to have various exceptions that would ensure its enforceability. While I agree that laws should not be enacted retrogressively, I feel that the biggest challenge facing the ex post facto clause is the obscure differentiation of criminal laws from civil laws. The clause that prohibits ex post facto laws bans several acts. First, it prohibits the creation of criminal laws and making them retroactive. Such retroactive laws have the effect of criminalizing acts committed before their enactments. The clause also prohibits laws that are made in order to retroactively aggravate a crime, for instance, by retroactively changing a misdemeanor to a felony. Retroactively increasing the punishment for a crime is also prohibited under US laws. Furthermore, the Ex post facto clause also bans the creation of laws that alter the rules of evidence and instead allow conviction based on different or lesser evidence than what the law proscribed at the time of the crime’s commission (Gardner & Anderson, 2011). There are several exceptions to the limitation of retroactive laws in the ex post facto clause. The rule is limited to penal law and is not applicable to cases where the new laws favor the accused. Moreover, the rule is not applicable to customary laws and precedent laws that are retrospective with regard to previous cases. Another exception to the ex post facto rule is a retroactive law that provides for retribution for certain acts that were illegal but not criminal when they were committed. An example of such a law is the London Agreement, which is retroactive to the extent of acts that constituted violations of international laws when they were committed (Bassiouni, 2011) One of the most important current aspects of ex post facto laws is taxation. Prohibition of retroactive laws is limited to criminal acts. Therefore, there is no ex post facto law prohibition in taxation since it is a civil act. In the case of Fernandez vs. Fernandez, it was ruled that prohibition on ex post facto laws was limited to criminal laws and that tax laws were civic. In September 2012, the U.S Commerce Department imposed an ex post facto tax of $ 100 million as an anti-dumping measure (Foldvary, 2012). I feel that there is need to address the lack of prohibition of ex post facto laws in taxation. It would be unjust if entrepreneurs would lose property through confiscation by the government in an effort to recover retroactive taxes. References Bassiouni, M. C. (2011). Crimes against humanity: Historical and contemporary application. Cambridge: Cambridge University Press. Foldvary, F. E. (2012). The Progress Report: Ex post Facto Taxation. Retrieved October 27, 2012 from: http://www.progress.org/2012/fold784.htm Gardner, T. J. and Anderson, T. M. (2011). Criminal Law. Belomont, CA: Cengage Learning. Zollar, J. (2002). Prohibition against Ex Post Facto laws. House Research. Retrieved October 7, 2012 from: http://www.house.leg.state.mn.us/hrd/pubs/ss/clssexpost.pdf

Agri-Business Essay Example | Topics and Well Written Essays - 4500 words

Agri-Business - Essay Example The key success factor of Farmers Haven shall be its freshness and its purity in terms of organic nature of farming. The company shall brand itself as a high quality food supplier using best quality genomes for its produce. The paper is a detailed business plan that begins with a discussion of company’s objectives and mission. The paper identifies the key success factors of the business and goes forth to discuss the company’s key operations and products, its location geographies and facilities. The paper also discusses a detailed marketing strategy for the company highlighting its target market and key competitors. Under strategy implementation, the paper brings in the competitive edge for farmers Haven, its marketing strategy, pricing strategy, sales strategy and strategic alliances. The financial plan is the key to a comprehensive idea about the sources of funds and how they shall be utilised in the business processes. The financial summary also presents a pro-forma balance sheet and income statement presenting forecasts based on estimated figures based on ascertainable assumptions. Through the detailed discussion, the paper aims to provide a complete outlook on the proposed business pl an and its viability in the future. Farmers Haven shall be formed with the acquisition of the Knocktim Dairy Cottage and shall be working towards developing the fertile land into a full-fledged farming area producing high quality farm produce including fruits, vegetables, poultry produce and horticulture products. The 3 acre land shall be put to use in its fullest potential by farm managers and the owner who have the most extensive knowledge and experience in the farming business. The region of operations is located within an area of Scotland that is highly fertile and also attracts a lot of tourists for its natural beauty. The land is to be acquired for farming was primarily engaged in the dairy activities and it shall be strategically divided

Strategic Personal Development Plan Term Paper Example | Topics and Well Written Essays - 3750 words

Strategic Personal Development Plan - Term Paper Example The process of creating a PDP also involves the identification of the current situation in terms of qualification, skills, abilities as well as knowledge. Once all this is identified, the process of writing the PDP can start. The process of documenting the PDP involves several different stages, such as the current state and the situation that one desires to be, the ways to reach that position and so on. It is critical to identify the desired state because based on that, objectives and goals required to reach that state are arrived at. To get clarity on goals, it is ideal to use SMART criteria. For convenience, it is also good to split up the objectives based on whether they are short term, medium term and long term as this makes it easier to monitor them and achieve them. In the conclusion of the PDP, the reasons for achieving the goals are highlighted and the methods adopted to find out the best possible way to achieve these goals are identified. Introduction. A Personal Development Plan (PDP) can be defined as a formal, structured and organized process which is undertaken by an individual in order to get a perspective on their own learning, performance as well as achievements and to help them plan for development of their career, education as well as personal life. ... It is critical to identify the desired state because based on that, objectives and goals required to reach that state are arrived at. To get clarity on goals, it is ideal to use SMART criteria. For convenience, it is also good to split up the objectives based on whether they are short term, medium term and long term as this makes it easier to monitor them and achieve them. In the conclusion of the PDP, the reasons for achieving the goals are highlighted and the methods adopted to find out the best possible way to achieve these goals are identified. Nothing is particularly hard if you divide it into small jobs. Henry Ford 1. Introduction to PDP A Personal Development Plan (PDP) can be defined as a formal, structured and organized process which is undertaken by an individual in order to get a perspective on their own learning, performance as well as achievements and to help them plan for development of their career, education as well as personal life. A PDP should adopt many different approaches of learning that would help in connecting planning (the desire as well as the goal of an individual for learning), doing (developing a correlation between action and intent), recording (documenting thoughts, ideas, notions, experiences and events so that it is possible to understand the methods and outcomes of the learning process) and reflection (evaluating and judging the results of the process of learning). Personal development is just not a process that involves improving oneself and others, but it is also a process that involves practice and research. It involves a deep understanding of methods of personal developments, learning

Programming the technology Essay Example | Topics and Well Written Essays - 1000 words

Programming the technology - Essay Example The availability of customers’ information at numerous sources initiated concerns about its privacy. Customers began to worry about the theft of their information and also about its usage for different purposes. There are many sources of data from where the security breach may initiate and privacy of the individual may be threatened. Kahn (2010) stated some of them, namely healthcare records, financial institutions, residence and postal records, business transactional data etc. The need of the hour is for the organizations to understand the meaning of privacy; it does not mean to stop the data collection process, rather it means to understand the boundaries and limitations by which the customer’s data should be used. Business organizations, health-care establishments, financial institutions need to ensure that the usage of the customers’ information complies with the terms that were communicated to the customer at the time of the data collection. Since otherwise, it is considered unethical and illegal (in some instances) to use the information for analytical purposes for the betterment of their business. There are an increasing number of instances of security breach around the world. Waters (2008) quoted a survey that constituted of 1000 companies; it was concluded that almost 90% of them allowed their employees to leave the office premises with confidential data on their USB devices. This is just one of the examples of how customer’s data is not protected in the hands of the organizations; another common happening in which the customer’s privacy is threatened is the theft of computers and laptops in which data is not encrypted. Few other techniques that go against the privacy rights of the customers are hacking, phishing, eavesdropping, intrusion etc. Waters (2008) also stated that security breaches cost UK billions of pounds every year. Some

Public and User Involvement in Health Care Essay

Public and User Involvement in Health Care - Essay Example Some recently published official reports admit that the government could not effectively convince people to give up bad health behaviours like consumption of unhealthy food and alcoholic beverages. Evidently this health trend would negatively contribute to the overall wellbeing of the UK population, and the government would lose millions of pounds for nothing. This paper will describe why educating people on the health risks of certain behaviours may not necessarily help reduce such risks. To make the points clear, this paper will give particular attention to certain behaviours like alcohol addiction, smoking, substance abuse, fast food consumption, premarital sex, and sexual promiscuity. The UK government spends a notable percent of its revenues on health awareness programmes with intent to eliminate future healthcare costs. The government tries to promote positive health messages mainly through television Ads because majority of the UK citizens spend a considerable amount of their time on TV programmes. The UK government jointly operates with many social interest organisations to control unhealthy behaviours like alcohol consumption and smoking in the society. As part of these health campaigns, health authorities and other volunteer groups organise road shows and other major promotional events to influence people. While analysing the UK government’s health spending over the last few decades, it seems that the government spent largely on the promotion of healthy food patterns. Since 1997, the UK government has been introducing a series of high-profile health campaigns to improve food pattern, â€Å"including Health Action Zones in poor food areas, the five-a -day fruit and vegetables campaign, the school fruit programme, and the change4life campaign on obesity† (Hickman, . 2010). However reports indicate that spending of millions of pounds of public money on these health campaigns has had little effect on the overall public

Cell Phone Use Should Be Prohibited While Driving Essay

Cell Phone Use Should Be Prohibited While Driving - Essay Example A 2005 study conducted by Virginia Tech found that 80% of all automobile crashes were associated with driver inattention (Box). Drivers that become distracted lose the concentration on the road that is necessary for safe driving. A distraction that lasts for only a few seconds, such as dialing a phone, can be sufficient to cause an accident. The study further found that the use of phones, and other wireless devices, was the leading cause of driver distraction events (Box). Young drivers, who are already struggling with driver safety, are put at even greater risk as we see the pervasive numbers of cell phones escalate in the 16-24 year old group ("Cell Phones and Driving"). All drivers need to focus on the task of driving and not be allowed to be distracted by a phone call. When we are driving, we rely on our peripheral vision to tell us the location of traffic that may be around us. When we have a cell phone to our ear we are limiting the vision from our left eye. Traffic to the left of us may go unnoticed or critical road signs may be missed. Using a cell phone while driving is like trying to drive with your left eye closed. Hands free devices offer little improvement as drivers develop tunnel vision while concentrating on the phone call and staring straight ahead (Evans).

Entering the conversation Essay Example | Topics and Well Written Essays - 500 words

Entering the conversation - Essay Example In the event of such occurrences, human beings have been urged to accommodate the feelings and opinions of other parties involved in the dialogue (14). The author gives a detailed example of the notions a lot of people have on vegetarianism. Most people are of the opinion that vegetarianism is a lifestyle while others hold the opinion the lifestyle is dreadful (15). All in all, the author analyses both sides of the concept so as to include the opposing ideas and the ones for the lifestyle. Essentially, this is to mean that all propositions and opinions of all persons are important and must be considered in entirety. Anything is expected in the course of any form of conversation (14). The author of Reading Strategies indicates that an all-inclusive reading involves various steps. The first must be inclusive of making a preview of the entire text. Through a brief preview, the reader is able to have a quick glimpse of the ideas portrayed by the author (353). The reader must then analyse the thoughts of the author from one’s point of view. This entails the perception one holds regarding the text, either repugnance or acceptance to the author’s ideas. Afterwards, the reader must annotate the key points brought forward by the author in the text, a process that which is only successful whilst weighing the author’s viewpoints in mind. Doubting and validating the author’s views scrutinizes the reliability of the work (358). A good example is Lessig’s work where the author takes the reader through the process of analysis of a piece. On another point of view, the author argues that summarizing the main points in the course of reading helps to confirm that all sections have been analyzed properly (360). At times the author uses some patterns whilst compiling their work, which may help readers have a summary of the text (361). The readers must also use color to highlight main points in the text. All

Hariharan N The Musical Genius Essay Example | Topics and Well Written Essays - 1250 words

Hariharan N The Musical Genius - Essay Example This gave way to many concerts, television performance and even TV serial such as â€Å"Junoon†. In 1994, he received the Best Album of the Year Award for the song Abshaar-e-Ghazal. In 1998, he was awarded as the â€Å"Best Male Playback Singer† by the Tamil Nadu State Government Film Awards for his song â€Å"Mere dushman mere bhai†. All of the awards however were nothing compared to the milestone that he achieved in the year 1996, the time when his fusion album ( Indian-English ) â€Å" Colonial Cousins† made him a celebrity. It was a collaboration between Bombay-based composer/singer Leslie Lewis and him. It was popular due to the fact that it : "Colonial Cousins" became the first Indian act to be featured on MTV Unplugged and also won the pair a string of national and international awards, including the MTV Indian Viewers Choice award and US Billboards award†( Hariharan mysticamusic.com ) The popular album showcased Harahan’s musical prowess as a co-writer , musical scorer and artist. This is a hard combination to beat even amongst young artists of today where singing is the only forte one has. What was outstanding about Harihan is that he was able to â€Å" scale the song Hamsathwani raga in three octaves, hitting the lowest and highest notes with equal facility. His other songs like â€Å"Feel Alright â€Å" is a perfect example of fusion wherein he was able to sing the English lyrics yet in typical Indian folk style.

Thank you letter Essay Example | Topics and Well Written Essays - 500 words

Thank you letter - Essay Example I am quite hesitant in writing this letter, but the urge of admission within me is pushing me ahead to explain my position. I'd like to emphasize here that I've always earned top scores in Mathematics including calculus I, II, III and pre calculus and algebra. I was able to secure an 'A' all through. Similarly English has also been one of my strengths. But, during the test of reading comprehension and quantitative reasoning there was something which prevented me from concentrating well on the subject. I was given two black markers from the testing center. By mistake, I left these markers open during the test and by the end of the second section these markers dried out. When I called for help couple of times, the testing instructor went out of sight for durations ranging from couple of minutes to about ten minutes. As time progressed, I became little tense as there was time constraint for the test, so I had to hurry up, which in all probability appears to have influenced my test score . You can ascertain the fact, if you could take a look at my past grade on those two subjects. So I'll be grateful to your goodself, if you could take a look at my individual score rather than the entire DAT test score. I am willing to sit for a retake DAT as soon as possible to prove my point.

The Post Office and Tesco Essay Example for Free

The Post Office and Tesco Essay For this task I have been asked to describe the type of business purposes and ownership of two contrasting business, the two businesses I have chosen are The Post office and Tesco, I will be contrasting these two businesses in this report. The post office was established in England in 1660 by Charles II, it has been running ever since and is known world wide and is used every day of the week, The post office is in charge of mail and deliveries that have been paid for by customers and they will post them to the place listed on the item, the post office will then dispatch the item to the receivers location through planes/vans to postmen to the receiver, sometimes you have to sign for the product which helps customers with things like insurance of the item. The Post office is a government owned business as it is paid for using the tax payer’s money which means the government takes care off expenses of the business and they will also have to deal with any problems that are going on the will also take the profits that the business makes, the post offices operates nationally as the postal service operates only in the country and post is sent every day, The post office falls under the tertiary sector because they sell a service for e.g. they sell people mail deliver as they deliver they mail for money, The post office supply a postal service in which they post/deliver your letters so they can make profit, the post office supplies its services to customers by allowing them to use post boxes to post their letters, but the letter must have a stamp that has to be bought at a post office, for larger items like packages you will have to take them to the post office and get them sent from there, the post office exists to offer a postal service to the public so they can deliver your packages/letters to other destinations the post office also charge money to send letters using them, they also exist to make profit for the government, it was first open in 1660 as a way to deliver letters/notes from city to city but has developed in the years which has made it more complex. The post office supplies services to the public by charging them to deliver their letters at a fee, you will have to go to a shop and purchase a stamp which can be used to send letters, also for larger letters or packages you will have to visit the post office and they will take care of the package for you and also will charge you depending on the weight off the package/letter, The Post office business operates nationally, The Post Office is needed for the country’s postal service to run, if this business was to close down many people would loose their jobs and also the country’s postal service would collapse and the mail would be unorganized, as this is a government owned business the government will try anything to keep this service/business running because it could cause the country’s postal service to collapse. The first Tesco was opened in 1919 by a man called; Jack Cohen from that 1 store Tesco has grown in the market and now has 923 stores worldwide, (Sentence from wikipedia) Tesco is a supermarket that sells all kinds of household items such as food, clothes range, Technology range, phone range furniture, toys and many more, Tesco has many different stores which make a lot of money every year. Tesco falls under the tertiary sector as they are a supermarket who sells products made by other companies to the public/customers who use their services, Tesco buys a lot of stock from other companies such as Wholesales and sells them off a profit, Tesco is a Public limited company (PLC)which means that it is a business that has over  £50,000 the business isn’t owned by one person, it is owned by different shareholders who all share decisions made in the business, and also share the profits and the responsibilities of the business. Tesco has stores all around the world which means it is a Global business It has many stores in places like Korea, Poland, Taiwan and Thailand and over 923 stores worldwide, Tesco sell household goods such as foods, clothes and even furniture they sell these products so that they can make a decent profit at the end of the year, Tesco exists to make money, they make there money by selling stuff at suitable prices which customers can afford so it is easier to shop with them and so they can also make more money, Tesco was opened in 1919 as one store which has transformed into a Globally known business. They operate in different parts of the world but mostly in the U.K. Tesco supplies its services/products to customers by allowing them to come in store and buy the products that they need and when they are done they will go to a checkout to pay for them, Tesco exists to offer goods at reliable prices, for the public to buy, Tesco is well known for cheap products at suitable prices that people can afford, it has also uses advertising and is on price comparisons sites to show how cheap they are. If Tesco was to close down a lot of people would loose their jobs, but it wouldn’t affect customers as much as if the post office closed down, because there are many other supermarkets which the customers could change to, there are other supermarkets like, Asda, Morrison’s, Sainsbury’s and many others we’re people could shop instead of Tesco so it wouldn’t affect the government/customers that much.

A Report On Bios And Cmos Computer Science Essay

A Report On Bios And Cmos Computer Science Essay This is a written assignment where students are required to write a report on BIOS and CMOS. Describe the different types of BIOS and CMOSs and what are the current technologies and models for BIOS and CMOSs. Students can also address what are the possible symptoms for BIOS and CMOSs failures and how to fix them. Plagiarism Detector: http://www.plagiarismdetect.com. All you need to do is paste/upload your document file and hit the analyze button. It will map the document with any available online resources. Students are required to print and attach the outcome in their report (acceptable percentage of similarity: BIOS is the short form of Basic Input Output System program that starts when you turn on your computer. It checks all of your hardware to ensure they all have power and are working. BIOS is actually firmware, the software that is programmed into a ROM (Read-Only Memory) chip on the motherboard of a computer. BIOS is something that makes the system run on an initial Power-On Self-Test of the computer, initialize circuits, load the boot program from the startup disk, and then handle low-level I/O peripheral controllers such as keyboard and screen. It has several different categories; you can see your BIOS by paying attention to the screen when it first starts up, there will be a screen with few seconds duration. The BIOS is typically placed in a ROM chip that comes with the computer (it is often called the BIOS ROM). This ensures that the BIOS will always be available and will not be damaged by disk failures. It also makes it possible for a computer to boot itself. Because RAM is faster than ROM, however, many computer systems design manufacturers so that the BIOS is copied from ROM to RAM each time the computer is started. This is known as shadowing. Many modern PCs have flash BIOS, which means that the BIOS have been recorded on a flash memory chip, which can be updated if necessary. The PC BIOS is fairly standardized, so all PCs are similar at this level (although there are different BIOS versions). Other DOS functions are usually added through software modules. This means you can upgrade to a newer version of DOS without changing the BIOS.PC BIOS that can handle Plug and Play (PnP) are known as PnP BIOS-es, or PnP BIOS current. These BIOS-es are always implemented with flash memory rather than ROM. CMOS Semiconductor complementary metal oxide (CMOS) is a type of semiconductor chip that holds data without requiring external power source. In a personal computer (PC), CMOS has the basic instructions the computer needs to initialize its hardware and start-up. These settings are known as the basic parameters of input-output system (BIOS), also called the CMOS settings. CMOS control a variety of functions, including the Power on Self Test (POST). When the computer power switched on, CMOS will run a series of controls to ensure that the system works properly. One of these controls includes counting memory (RAM). This start-up time delays, so some people disable this feature in the CMOS settings, opting for a quick start. If you install new RAM, it is preferable to activate until the RAM has been verified. Once POST has completed, CMOS runs through its other settings. Hard drives and formats are detected and Redundant Array of Independent Disk (RAID) configurations, the start-up preferences, the presence of peripheral and tweaks for over clocking. Many parameters can be changed manually in the CMOS setup screen to improve performance. However, changes must be made by experienced users. Changing the settings wrong can make the system unstable, causing accidents, or even prevent the computer from starting. The CMOS setup screen is accessed during the POST phase mode, by pressing a button before the operating system boots. Normally it is the Delete key but it could be another. A line of text will indicate which button the user in the CMOS or BIOS setup screen. Changes can be made from an operating system like Microsoft Windows, but must be done in a true DOS session. There is also an option to protect the CMOS settings by requiring a password to change settings. The changes are saved to the output by pressing the F10 key, and then the computer restarts to use the new settings. The system uses what is called a CMOS Checksum error code as a detector. Whenever you change the BIOS settings, the checksum is generated by adding all the bytes in the CMOS memory, then store the lowest byte of the sum. Then, whenever the system is booted, the system recalculates the checksum and compares the stored value. If they are different, the system knows that the CMOS has been corrupted in some way and will notify you via an error, usually something like CMOS Checksum Error. There are many different types of batteries used to power the CMOS, for the most part; they have evolved over time as technology has evolved. These batteries are discussed here. You will not normally deal with the CMOS memory directly; it contains the parameters that you enter the BIOS setup. Over time, it is possible that you have problems CMOS, for example, you may find that the machine can begin to forget its settings when it is started. These are usually signs of problems with the battery on the moth erboard. (Figure-1) (Figure-2) (Figure-3) CURRENT TECHNOLOGIES AND MODELS FOR BIOS AND CMOS BIOS Version 5020 SOX5810J.86A.5020.2010.0224.0938 About This Release: à ¢Ã¢â€š ¬Ã‚ ¢ February 24, 2010 à ¢Ã¢â€š ¬Ã‚ ¢ SATA RAID Option ROM: 8.9.0.1023 à ¢Ã¢â€š ¬Ã‚ ¢ LAN Option ROM: Intel(R) Boot Agent PXE GE v1.3.24 à ¢Ã¢â€š ¬Ã‚ ¢ LAN Option ROM: Intel(R) Boot Agent PXE Base Code (PXE-2.1 build 086) New Fixes/Features: à ¢Ã¢â€š ¬Ã‚ ¢ Added support for Intels 6-core desktop processor, codenamed Gulftown. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed watchdog timer and host clock display issues for XTU2. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed issue that was causing IFlash and Express BIOS Update to fail on subsequent flash updates. à ¢Ã¢â€š ¬Ã‚ ¢ Reduced pre-video boot time by about 7 seconds. à ¢Ã¢â€š ¬Ã‚ ¢ Added support to check the IOH stepping and if it is a B2 or earlier then set QPI Power Management default setting to disabled and if it is a B3 or later then set the default to enabled. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed setup option default setting for CPU C-States to be enabled and IMON to be disabled. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed issue with watchdog timer when running in the operating system and changing from one processor to another. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed XMP related issues: When an XMP profile was selected the host clock was unchangeable. When selecting Automatic mode the Uncore Multiplier was being set to 22 instead of the proper system default. When selecting Manual mode the minimum supported ratio between Memory Ratio and the Uncore Multiplier will be used based on the processor installed. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed issue where the PC Compliance bit was being set incorrectly causing Secondary Boot Request to cause some cards to fail to train correctly. à ¢Ã¢â€š ¬Ã‚ ¢ Set VT to be enabled by default. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed issue preventing greater than 160 for the Host Clock. BIOS Version 4598 SOX5810J.86A.4598.2009.1211.1321 About This Release: à ¢Ã¢â€š ¬Ã‚ ¢ December 11, 2009 à ¢Ã¢â€š ¬Ã‚ ¢ SATA RAID Option ROM: 8.9.0.1023 à ¢Ã¢â€š ¬Ã‚ ¢ LAN Option ROM: Intel(R) Boot Agent PXE GE v1.3.24 à ¢Ã¢â€š ¬Ã‚ ¢ LAN Option ROM: Intel(R) Boot Agent PXE Base Code (PXE-2.1 build 086) New Fixes/Features: *Other names and brands may be claimed as the property of others. à ¢Ã¢â€š ¬Ã‚ ¢ Added XTU 2.0 support. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed F9 default value for TDC, TDP, and Turbo Ratio. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed watchdog timer and host clock display issues for XTU2. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed a setup display issue for 5-Core Ratio Limit. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed a display issue with the Turbo Boost Technology in setup when a processor is installed that does not have 4 cores. à ¢Ã¢â€š ¬Ã‚ ¢ Updated processor support. BIOS Version 4405 SOX5810J.86A.4405.2009.1020.1419 About This Release: à ¢Ã¢â€š ¬Ã‚ ¢ October 20, 2009 à ¢Ã¢â€š ¬Ã‚ ¢ SATA RAID Option ROM: 8.9.0.1023 à ¢Ã¢â€š ¬Ã‚ ¢ LAN Option ROM: Intel(R) Boot Agent PXE GE v1.3.24 à ¢Ã¢â€š ¬Ã‚ ¢ LAN Option ROM: Intel(R) Boot Agent PXE Base Code (PXE-2.1 build 086) New Fixes/Features: à ¢Ã¢â€š ¬Ã‚ ¢ Updated processor support. à ¢Ã¢â€š ¬Ã‚ ¢ Enabled the selection of Video Device according to the Primary Video Adapter setup option. à ¢Ã¢â€š ¬Ã‚ ¢ Expanded the default size of the NVS memory allocation. à ¢Ã¢â€š ¬Ã‚ ¢ Blocked the on-board LAN PXE dispatch when on-board LAN is disabled. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed issue where the default video device was not set correctly if two video cards of same vendor and device id was present in system. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed issue where certain SATA RAID controller failed to boot according to the boot order. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed issue where system hangs at POST code 0xBA with two SATA optical drives attached and certain media in one drive. à ¢Ã¢â€š ¬Ã‚ ¢ Fixed issue where certain SATA RAID controller failed to resume from S3. à ¢Ã¢â€š ¬Ã‚ ¢ Added feature to block compressed BMP files from use as a custom logo with Intel ® Integrator Toolkit. à ¢Ã¢â€š ¬Ã‚ ¢ Enabled BIOS Setup to always be reset even if iFlash2 is interrupted when /f flag is set. WHAT IS THE DIFFERENCE BETWEEN BIOS AND CMOS? Many people use the term BIOS (Basic Input / Output System) and CMOS (Complementary Metal Oxide Semiconductor) interchangeably, but in reality, they are distinct, yet related, components of a computer. The BIOS is a computer program that starts up, and the CMOS is where the BIOS stores the date, time and details of system configuration needed to start the computer. The BIOS is a small program that controls the computer from the time it powers on, until the time the operating system takes over. The BIOS firmware, which means its, cannot store the variable data. CMOS is a type of memory technology, but most people use this term to refer to the chip that stores data variables for booting. A computers BIOS to initialize and control components such as controllers and hard disk drive and the computer hardware clock, but the specific parameters for the startup and initialization of components are stored in CMOS.In addition to the standard CMOS memory used to store system settings, BIOS Plug and Play use a nonvolatile memory upgrade to keep the extended system configuration data (ESCD). It is used to save the configurations of the devices of system resources when Plug and Play is used. Type of BIOS Phoenix IBM AMI Award Type of CMOS Battery Coin Cell Batteries PS2 Computer Clock Battery BIOS AND CMOSS FAILURES AND HOW TO FIX THEM CMOS checksum error mostly will occurs when CMOS values was incorrect. There is few option may occurs the failure as below. Bad or old CMOS battery. BIOS update. Removing power from the computer without shutting down the computer. POST errors. The Solution Bad or old CMOS battery: Try restarting the computer. If the error persists after restarting the computer to enter the CMOS setup and check all values, which include verifying the date and time are correct. Once everything has been checked and / or changed be sure to save and exit the CMOS setup. If everything looks correct and the problem persists try resetting the defaults in CMOS and / or Reset Configuration Data. Additional information on how to proceed can be found on document CH000976. Note: If this problem persists after you turn off your computer off, it is possible that the CMOS battery may be faulty or already ill. Before consider on replacing the CMOS battery to try to leave your computer on for several days. Additional information on replacing the CMOS battery can be found on document CH000239. Computer badly off: If the computer had been disconnected the power while still running it is possible that this may cause the CMOS to be corrupted. Make sure the computer is ready to be cut before turning off the computer. If you have a laptop so that battery is charged before disconnecting the electrical connection. If the CMOS values have been damaged by entering values in the CMOS setup and saving CMOS and the output should solve your problems. Additional information about entering the BIOS setup can be found on document CH000192. BIOS update recently completed: if youve recently released a BIOS update on the computer values stored in the CMOS can be reset. Enter CMOS setup and re-enter all the appropriate values. Additional information about entering the BIOS setup can be found on document CH000192.If you are unable to enter the BIOS or after the execution of a BIOS your computer is no longer values the incorrect BIOS update may have been installed on your computer or the downloaded version may be corrupted. We suggest you try to update the BIOS and / or go back to an earlier version. Additional assistance and information with the BIOS updates can be found on document CH000236. POST error: Each BIOS manufacturer has its own diagnostic codes to identify specific errors. You need to consult the documentation for specifying the BIOS beep codes. Many motherboard manufacturers will use code similar to the original IBM POST codes, which are summarized in the table below. If you get a single beep, all is good. In some cases, these beeps are also accompanied by a diagnostic code; you also look in the BIOS documentation. Beep Code IBM POST Beep Codes Description One short beep Normal POST System is Okay Two short beeps POST error Error code shown on-screen No beep Power supply or system board problem Continuous beep Power supply, system board or keyboard problem Repeating short beeps Power supply or system board problem One long and one short beeps System board problem One long an two short beeps Display adapter problem {MDA,CGA}