Annual Report 2014-15


Executive Summary

Chair's Review

Trustees' Report


Public benefit


Strategic Report

1. Achievements and performance

How we're delivering on our strategic themes

Performance under our corporate priorities

2. Financial review

3. Plans for the future

4. Principal risks and uncertainties

Structure, governance and management

Employee involvement and the employment of disabled people

Statement of Trustees’ responsibilities

Independent auditors' report to the members of Scope

Scope's Directors and Trustees

Thank you to all our supporters

Legal and administrative details


Download the text only version (Word document 555 KB).

Executive Summary

As a charity committing to driving social change, for Scope itself 2014/15 as a whole can be summed up by that one word - change.

Society itself has changed. From the way people think about disability, to the visibility of disability and on to the challenges facing disabled people. Scope has responded to those changes, and it continues to do so.

During the year we helped to change attitudes to disability through our End the Awkward campaign, began our programme of transforming our care homes and introduced changes to existing structures and systems to support personal budgets. And at the top of the organisation there was change: Alice Maynard stood down after six years in the role and Andrew McDonald was elected as her successor.

We broke organisational records for Fundraising income and for Retail (the highest surplus in a decade) but the end of the year saw us incur a deficit of £3 million. This arose from reduced Services income, the challenging commissioning environment and care home closures. As a consequence, our level of free reserves fell below our target of £7 million.

Across the year we achieved a lot. We established existing services in new areas, launched the independent Extra Costs Commission to investigate the additional financial burdens disabled people face and to look at ways of reducing them and, as part of the work of the helpline supported more than 1,000 people with complex financial queries. Our work has been supported by generous donations from individuals and corporations. And in all that we do we depend on the tireless work and dedication of our staff and volunteers.

As we move into 2015/16 we will look at how we need to continue to change to ensure that we reach more disabled people through our work. We will develop a new organisational strategy, setting out the breadth and rate of change over the years ahead. In all that we do we will seek a future which is sustainable and continue to drive change across society so that disabled people have the same opportunities as everyone else.

Chair's review

By Scope's Chair Andrew McDonald.

I was delighted to join Scope in October. Here was an organisation with a compelling vision which had made great strides in recent years. 

A huge amount of credit for this goes to my predecessor, Alice Maynard. This is a very different organisation to the one she joined in 2008. It was a great pleasure for all of us at Scope to see her contribution marked by the award of a CBE in the New Year Honours.

I am here, because – first and foremost – I’m a disabled person and I hope I have something to contribute to Scope’s future. I was diagnosed with Parkinson’s disease in 2007. Three years later, I was told I had prostate cancer, a condition that is now incurable. I have been profoundly changed by those experiences.

When first diagnosed with Parkinson’s, I wanted to get on with my life. But I also wanted to be open with the organisation I was then leading. But colleagues advised me not to do so, warning that I would be labelled as a disabled civil servant and that the categorisation would end my career. I was shocked, not least because the Civil Service was, rightly, known to be a liberal employer. I decided I wanted to go ahead, because if I didn’t, I felt I was making it more difficult for the next person who faced a similar diagnosis. And if these attitudes persisted in the Civil Service, a relatively enlightened employer, what were things like elsewhere? I went on to lead work on disability in the Civil Service. 

I have come to Scope because I share its vision of a world where disabled people have the same opportunities as everyone else.

I am conscious that I still have a lot to learn about Scope and its work.

I am constantly bowled over by the impact of our work with disabled children, adults and their families – from our Face 2 Face befriending network, to our helpline, to the support we offer disabled adults to live independently and find work. We offer life changing support. 

But it is a challenging environment, in which we work with local authorities whose budgets are being squeezed, alongside pressures on our own budgets. Colleagues in our Services teams work hard to provide quality services which are cost effective. Those challenges are only going to increase in the coming years and we are clear that we will need to raise our game financially.

At the same time, we have to match the high and evolving expectations of disabled people for support that meets their needs. In that context, we announced in 2013 that we would change or close 11 of our 35 care homes.

These care homes – which are out of the community and offer little privacy – were created when expectations were much lower. Our obligation is to respond to the expectations of today – and tomorrow. We are following a tried and tested plan and investing in support to make sure people who live in the homes can move somewhere else that suits them. This year, following consultation with everyone affected at five care homes, we made the decision to close three homes and change one to a supported living service. We helped each person to work with their local authority to find a new home that suited them.

I have also seen first-hand the difference we can make by influencing politicians and policy makers. 

I know how hard it is for disabled people to find work and then stay in work. This year we called on politicians to halve the gap between the employment rates of disabled people and non-disabled people (which is about 30%) – a pledge the current Government has adopted. 

Life costs more if you are disabled, from travel costs to higher fuel bills or specialist equipment. Our research shows that this adds up to on average £550 a month. This has a huge impact on disabled people’s ability to hold down a job or even make ends meet. This year Scope launched the independent Extra Costs Commission – led by disabled entrepreneurs and business experts – to look into what can be done to get disabled people a better deal as consumers. It is clear businesses need to value the purple pound so disabled people can become savvier consumers.

Public attitudes to disability underpin everything. This report describes the work we did on our campaign End the Awkward. It has had a significant impact, and reflects our willingness to take risks to challenge attitudes.

We had a good year in terms of Retail and Fundraising. 

In Fundraising this year, we became joint lead charity for the 2014/15 Lord Mayor’s Appeal, we received over £500 thousand from the Big Lottery Fund for our Face 2 Face befriending service and we became the charity partner for Standard Life and Virgin Media. Our Inspirations dinner raised more than double its income target. We also recruited over 40,000 new regular donors and had a record number of individuals taking part in challenge events. In total, including £1.5 million of grants, we raised more than £20 million for the first time ever – nearly £2 million more than in 2013/14.

Retail took their annual Great Donate to another level, with Strip for Scope, a spoof video of the famous Levi’s launderette advert starring a disabled model. They smashed their target for donations and challenged attitudes to disability at the same time. 

But we have to acknowledge the impact of significantly lower income from our services. Consequently, we finished the year with a bigger deficit than we planned. 

As we move into 2015/16 we have to be clear that continued success against our strategy must be built on solid, sustainable finances and a clear, robust strategy.
From what I already know of Scope, I am clear that the next few years offer us a unique and exciting opportunity to bring about change, lasting change for disabled people. And to bring that about by putting disabled people at the heart of all we do. I can’t think of a more motivating, or more important, challenge.


Trustees' report

Objects and public benefit

The Trustees present the Trustees’ Report and audited Consolidated Financial Statements for the year ended 31 March 2015. 

The legal and administrative details for the charity, Trustees and advisers can be found at the end of this report and form part of the Trustees' Report.

What we are here to do
Scope exists to make this country a place where disabled people have the same opportunities as everyone else. Until then, we’ll be here. We provide support, information and advice to more than a quarter of a million disabled people and their families every year. We raise awareness of the issues that matter. And with your support, we'll keep driving change across society until this country is great for everyone. 

Scope is established for the public benefit and for general charitable purposes according to the laws of England and Wales and in particular, but not exclusively, for the promotion of equality, diversity, independence and health of disabled people, especially those with cerebral palsy. 

Public benefit aims
In exercising relevant powers and duties the Trustees have considered Charity Commission guidance on public benefit. This report outlines how our achievements and performance during 2014/15 have benefited the public. All our work furthers our charitable purpose of driving change across society so that disabled people have the same opportunity as everyone else.

We want to know how much difference we are making, and we want to be able to tell people about it. 

So we agreed on four main areas in which we will seek to change society for disabled people. Building on conversations with external contacts in the sector on our approach to impact, we consulted internally with a range of staff on our theory of change. As a result we identified four main areas in which we will seek to drive societal change for disabled people:
  • attitudes and behaviours
  • skills and capabilities
  • the support that is available
  • systems and structures. 

For example, End the Awkward seeks to change attitudes to disability amongst 20 to 30 year olds, while some of our work with teachers aims to increase their skills and confidence in teaching disabled children in mainstream education. 

In the coming year, we will begin to develop our approach to measuring our impact. Next year we will produce resources for staff to use when developing new services, to assess and consider which areas of change that service would relate to. We will also start to determine our data requirements, in terms of collection and reporting, so that we can consistently convey our impact. 

Strategic report

1. Achievements and performance

Scope exists to drive change that will make the country a better place for disabled people and their families. Since 2013 we have been working to our strategic direction, Changing Society, which prioritises six themes. We are focussing our attention and efforts on these themes:
  • Fulfilling family lives
  • Living independently in the community
  • Learning and skills
  • Work and volunteering
  • Financial well-being
  • Disabled leaders and role models. 

In 2014/15 we made real steps towards ensuring disabled people have the same opportunities as everyone else as our work gathered pace around our strategic themes. Across the organisation, most of our activity now focuses on more than one of these themes.
For example, the work of the Extra Costs Commission addresses disabled people’s financial well-being, but these issues also contribute to levels of support disabled people can get to live independently in their community. The Commission promotes disabled people as leaders and role models, as some of the Commissioners are disabled.
While our accounts reflect the delivery structure of the organisation rather than the strategic themes, our achievements are framed around our strategic direction and strategic themes. Further details can be found in the section of this report entitled How we’re delivering on our strategic themes.
We identified the following corporate priorities for the year, that give us the strongest possible platform to change society.
  • Transforming our services in line with our strategy
  • Influence and impact
  • Services quality and safety
  • Culture and capacity
  • Financial sustainability
We report progress on these in the section below entitled Performance under our corporate priorities for 2014/15

How we're delivering on our strategic themes

Fulfilling family lives

We want to support families with disabled children to become stronger and more resilient, so they can lead fulfilling family lives. We secured funding from the Big Lottery Fund that enabled us to:
  • launch three new Face 2 Face services across East London,
  • continue to run Stoke Face 2 Face and
  • launch a new Sleep service in Solihull. 

Face 2 Face is our service that connects parents who have disabled children for emotional and practical support. An academic study at Alder Hey Children’s Hospital Foundation Trust highlighted the positive impact Face 2 Face has on families. The study showed improvements in both befriendees’ and befrienders’ psychological well-being, family functioning and health-related quality of life. 

We work to change the attitudes, polices and legislation that limit disabled people’s opportunities and prevent change in communities and societies as a whole. In 2014/15 our influencing work resulted in changes to the support available through the government’s new Tax-Free Childcare Scheme. This now includes the full range of providers used by parents of disabled children. We also successfully called for a higher cap on childcare costs for disabled children, doubling it to £16,000, and worked to ensure information about Scope services featured in all Local Offers, in response to the Children and Families Act 2014.
We launched an online community – The Community – for people connected by disability to find support, share experiences and swap ideas. This platform enables community members to take part in achieving our vision. By sharing personal stories on The Community, visitors support each other to lead more fulfilling lives. In its first nine months over 31,000 visitors came to The Community.

As a founding partner of the Special Educational Needs and Disability (SEND) Consortium with eight other national charities, we successfully launched the pilot of – an online brokerage service to support personal budgets.

Living independently in the community
We are committed to ensuring that more disabled people have the opportunity to live independently in the community. As part of this commitment, in 2013/14 we had identified 11 of our 35 residential care homes for disabled people that needed radical change to make this possible.

In 2014/15 we consulted with people living at five of the 11 care homes and began work on projects to make this change. Following consultation with staff, residents and their families, we made the decision to close three care homes and change one to a supported living service. We invested in independent advocacy to support each person to make a choice about how and where they would like to live.
In the year that the Care Act 2014 became law, we continued to influence the future of the social care system. As part of our campaign around living standards, we focused on ensuring that the Act was supported by investment in the social care system, so that disabled people who need support to live independently are eligible to receive it. Leading the work of the Care and Support Alliance coalition, Scope made a real difference to how the Act will support disabled people to live independently. 

Learning and skills
To improve access to good quality education in the local community, we extended our community college outreach scheme. We worked with a sixth form college to deliver education for young disabled people over 16 with their non-disabled peers. We worked with college teachers to ensure they had the necessary skills and capabilities to work as effectively as possible with disabled students. This scheme also enabled young disabled people to access mainstream education, yet still benefit from the education and therapy from our schools.
Our partnerships with higher education institutions resulted in modules on working with young people with the most complex needs in their teacher and therapist courses. We also trained teachers in mainstream schools to help them include disabled children in education.
We trained 130 mainstream and specialist educators in assistive technology for education and we are developing an MSc-level course in assistive technology. 

We published articles on education for people with complex needs and influenced key education professionals by presenting conference papers on:
  • communication
  • curriculum development for people with complex needs
  • sensory integration
  • assistive technology
  • continence
  • cerebral visual impairment.
One of our teachers also appeared in a good practice video used by the Education and Training Foundation. This was all part of our work to make good quality education accessible to disabled children and young people in their local community

Work and volunteering
During 2014/15 we engaged with government, opposition parties, local authorities and disabled people’s organisations (DPOs). This policy and influencing work focussed on the continued importance of Access to Work funding that supports disabled people move into work. We also worked on a new pilot for Employment Support Allowance (ESA) that enabled claimants to create their own support package.
We supported 288 disabled people to move into work through a partnership with Prime Providers in North Wales, Kent, Surrey and Sussex, on a Department for Work and Pensions scheme. Our First Impressions, First Experiences project continued to help disabled people aged 16-24 make the transition into long-term employment. The course gives them the skills and capabilities to enter the workplace. Last year we worked with 37 disabled young people, five of whom got paid jobs.
In 2013/14 we had worked in partnership with Mind and Marie Curie to develop and launch a voluntary work experience programme with Job Centre Plus. In 2014/15 over 2,000 volunteers gained work experience opportunities in our charity shops as a result of our partnership.
We developed bespoke training and development programmes for our staff, to improve our own employment practice. We want to become an exemplar employer of disabled people and work with business, corporate partners and DPOs, to improve their working practices and employment opportunities for disabled people. 

Financial well-being
Work on financial well-being supports disabled people to get the funding and financial understanding to live fulfilling lives. This year we focussed on the extra costs of being disabled. In April 2014 we launched our Priced Out report, which highlighted that disabled people face average extra costs of £550 a month.
In July 2014 we launched the Extra Costs Commission, an independent inquiry set up to investigate the extra costs disabled people face. It looked at ways to reduce costs as well as the support disabled people can get. The Commission brought together disabled and non-disabled experts from areas including banking, finance and consumer affairs. The Commission published its interim report, Driving down the extra costs disabled people face, in March 2015. 

We partnered with Ecclesiastical Insurance to launch our first financial product, a home and contents insurance policy for disabled people and their families. It explicitly covers disability equipment both in and out of the home and aims to give disabled people peace of mind and financial protection.
Our dedicated finance specialist on our helpline supported more than 1,000 disabled people and parents with complex issues around finance and benefits.

Disabled leaders and role models
We aim to increase the visibility of disabled people and raise the profile of prominent disabled people as leaders and role models. We successfully recruited a disabled person as our Chair, the most senior role in Scope. Andrew McDonald replaced Alice Maynard as Chair in October 2014. Andrew was formerly a senior civil servant, most recently Chief Executive of the Independent Parliamentary Standards Authority (IPSA).
Our successful End the Awkward campaign took a light-hearted look at potentially embarrassing situations between disabled and non-disabled people. The campaign ran on television, at cinemas and online and reached millions of people (including 1.5 million views on YouTube), challenged attitudes (8 in 10 people said it made them think differently about disability) and established Scope as an organisation that is about disability (semi-prompted awareness increased by 5%).

We built relationships with the main broadcasters to help change attitudes and behaviours around disability in the media. We:
  • worked with the BBC on their forthcoming disability season,
  • helped develop a disability toolkit for ITV production teams and
  • worked with Channel 4 on a question and answer session that Breaking Bad star RJ Mitte gave to young people from our First Impressions, First Experiences project.
We have collected more than 100 disabled people’s stories to use in our communications. High profile disabled people, including Channel 4 presenter Alex Brooker, feature front and centre in our work. For example, we ran an online spoof of the iconic Levi’s Launderette advert, casting disabled model Jack Eyers as its star. The video, which promoted our Great Donate stock appeal, had more than 160,000 views on YouTube from July 2014 to March 2015 and we received just under 1.2 million stock donations during the month of July. 

Our approach to delivering our strategic direction
How we deliver our strategic direction is fundamental to our ability to change society. We launched a new website and visual identity to increase awareness of who we are and what we do. We launched a new strategy for working with disabled people’s organisations (DPOs) that aligns with our overall strategic direction. It sets out how we will collaborate with DPOs in key areas, including:
  • service development,
  • delivery and evaluation, and
  • research and public policy development.
Other notable partnerships included Boden (the clothing retailer), our Inspirations Dinner (which raised £307,000) and becoming Standard Life’s charity partner of the year.

We introduced a new fundraising event – Steptember – and launched our first ever Scope shop Instagram and Twitter accounts in Camden.

Our continued investment in developing and nurturing our staff saw the launch of our first bespoke training programmes for 300 of our managers and leaders.


Main operational activities

Delivery of our strategic themes is embedded in our main activities. Our main areas of activity are below.
Type of activity Aim of activity Expenditure on activity
Residential services for disabled adults Providing high quality care services for disabled people £22.4 million
Domiciliary, outreach and day services for disabled adults Supporting disabled people to live independent lives £5.3 million
Education services Supporting the learning of disabled children and young people £23.5 million
Inclusion and transition services Supporting disabled children and young people towards greater inclusion in society £12.5 million
Information, advice, employment and support services Providing high quality information on disability issues and supporting disabled people into work £5.2 million
Influencing and capacity building Influencing decision-makers, organisations and the public on disability issues £3.2 million


Performance under our corporate priorities for 2014/15

Each year we agree a small number of priorities. We report quarterly on high-level key performance indicators (KPIs) and milestones for each of these corporate priorities. These are detailed below. 

Transforming our services in line with our strategy
We completed the first year of delivery of our programme to transform review our residential care homes. We consulted people at five care homes. As a result of the consultations, we closed three of these care homes and changed one to a supported living service. The programme is continuing into 2015/16.

We finished refining the business models and future plans for our fostering service in 2014/15. We will continue this modelling work for the other services we want to develop in 2015/16. 

Projects to improve disabled people’s access to good value products and services are still at an early stage. 

Influence and impact
Our awareness campaign, targeted at people between 25 and 30 years old, and our work to raise our profile both performed better than target. 

Our End the Awkward campaign increased awareness of Scope as a disability organisation among a sample of the target audience from 7% to 12%, measured immediately after the campaign. Three months later awareness remained at 11%. 

We had a target of 365 positive media pieces during the year and achieved 401. As part of our work on disabled leaders and role models, we also tracked what proportion of our positive media coverage showed us as a disability charity and featured a disabled role model or spokesperson. This is harder to achieve with reactive media work and our target of 60% was challenging. However we achieved approximately 54%, which is half as much again as in the previous year.

Services quality and safety
Our compliance rates improved from below to above our benchmark during the year. The proportion of our services for adults in England rated by the Care Quality Commission (CQC) as ‘fully compliant’ increased from 85% to 96%. The national average range was 86% to 92.5%. 

Over the year, we particularly focused on the number of repeat safeguarding referrals that involved allegations against our staff. This was to identify whether previous safeguarding action plans have successfully changed practice or whether there may be systemic failures. There were two repeat referrals during the year but no systemic failures were found. 

We aimed to roll out a more person-centred approach across our services. We have made progress on this, although tools designed to track person-centred reviews will not be implemented until 2015/16. 

Culture and capability
This year we focussed on embedding our Performance Development Process (PDP) across the organisation, our offer to disabled employees and staff confidence in leadership and management. 

We assess employee performance through PDP and any pay awards are based on performance ratings gathered through PDP. Annual and in-year PDP completion rates averaged 95%. We now have a consistently high return rate which demonstrates that the process is well embedded. Our management and leadership development programmes support this process. 

Our plan to improve our offer to disabled employees was on track through the year and our network of 20 Access Champions is up and running. We recognise that this programme needs to be more aspirational. The Organisational Development team is considering next steps for the programme in 2015/16. 

For the first time since 2012 we carried out a survey across a sample of staff. 58% of respondents gave positive and 23% gave neutral answers to questions on their confidence in leadership and management. We are now planning actions to address areas where improvement is needed. 

Financial sustainability
To ensure financial sustainability we operate to financial plans and budgets agreed by the Board of Trustees and maintain sufficient free reserves to manage the key risks to the financial continuity of the charity.

As reported in more detail in the Financial Review section of this report, our financial performance this year was affected by lower income in Services and delayed receipts from property disposals. Although partly offset by surpluses generated by Retail and Fundraising and in-year cost savings, this also had an impact on our levels of free reserves. 

We have continued to invest in initiatives that help to deliver our strategy, notably services transformation and our End the Awkward campaign, and in maintaining the provision of services to disabled people.


Financial review


In 2014/15 we incurred a deficit: expenditure exceeded our income by £3.0 million (2014: deficit £0.5 million). 

In addition, an actuarial loss on a closed pension scheme of £1.0 million (2014: £0.8 million) was charged, and an unrealised investment gain of £0.1 million (2014: £0.04 million) was credited, resulting in our funds declining in the year by £3.9 million (2014: £1.2 million) as set out in the statement of financial activities.

The operating deficit grew by £1.9 million compared with last year, and in addition property transactions resulted in a £0.6 million worsening of the position.

The adverse operating performance arose in the provision of services to disabled people, where our income (including grants) of £56.5 million was £2.2 million lower than in 2013/14. This was caused by a challenging commissioning environment, planned care home closures and lower than planned occupancy levels. We continued to invest in fundraising activity to drive future income growth and maintained the level of expenditure in charitable activities. Strong surplus generating performances from Fundraising and Retail helped mitigate the impact of lower income from services for disabled people.

Our continuing investment in Fundraising and Retail delivered a surplus before support cost allocations of £12.9 million. This was £1.3 million better than 2013/14 and better than planned. The £3.0 million surplus before support cost allocations from our shops is the best result produced by them in more than a decade.

We had planned to sell three significant properties in the year as a result of our care homes review programme but were only able to complete one. By the end of the year a further three major properties were under offer. 
We used our free reserves, which were reduced to £4.9 million (2014: £6.8 million), in order to sustain our commitment to support our charitable activities on lower than expected income (see note 28). This was in anticipation of completing the outstanding property sales in 2015/16. 

In summary the main headlines for 2014/15 are as follows.
  • Income decreased slightly to £101.1 million (2014: £102.6 million): lower fees for services were only partly offset by higher voluntary income.
  • Costs of generating funds were level at £30.9 million (2014: £31.0 million), reflecting the continued investment in Fundraising offset by efficiencies in Retail.
  • Expenditure on charitable activities increased slightly to £72.3 million (2014: £71.2 million).
  • Net assets decreased by £3.9 million to £26.6 million.
  • Planned property sales did not occur as expected in the year but continue to be actively pursued. 

The work we undertake is funded by the income we generate through our fundraising activities, our retail operations and income earned from our charitable activities and the services we provide. This is supplemented by a small amount of investment income. 

Income from grants, donations and legacies increased by 8% from £20.7 million to £22.5 million. Following on from last year, growth continued in most areas of Fundraising, including individual giving, as a result of the continued investment in the expansion of our individual giving recruitment programme which started in 2011/12. 

Despite challenging trading conditions, Retail has enjoyed an exceptional year, achieving a trading surplus of £3 million before support cost allocations; the highest trading surplus for more than 10 years. Gross income of £22.5 million was £0.5 million lower this year, driven by a drop in rag income due to continued pressure on the international rag price. To offset this we are actively reducing our reliance on the rag trade by opening new concept discount and clearance shops. There has been a strong focus on costs with a significant reduction in property related costs and stock collection expenditure. We ended the year with seven more shops, having opened a further 10 and closed three. Investment in our shops continued: 35 underwent refits and refreshes.

Fee income, which is primarily earned from statutory funders for our services, at £52.5 million was £2.4 million below last year. This was caused by a challenging commissioning environment and lower-than-planned occupancy levels. In addition our services transformation activities reduced income capacity through the planned closure of three residential care homes. 

The sale of properties resulted in a loss of £0.6 million (2014: gain of £0.1 million). By the end of the year a further three major properties were under offer with a pipeline of a further five properties at an earlier stage of sale. 

Our investment portfolio generated income of £0.3 million (2014: £0.3 million) with realised and unrealised investment gains totalling £0.3 million (2014: £0.2 million). 

Cost of generating funds
The total cost of generating funds was level at £30.9 million (2014: £31.0 million). Overall fundraising costs have increased, representing continued investment in individual giving whilst retail costs are lower year on year, due to a focus on cost management and operational efficiency. 

Expenditure on charitable activities
Total expenditure on charitable activities was £72.3 million (2014: £71.2 million). 95% of this is on services that directly support our disabled customers to achieve choice, control, inclusion and independence in their lives. An explanation of how expenditure on our various charitable activities is analysed in the financial statements and how these relate to the objects of Scope can be found in note 1 to the financial statements – accounting policies (on page 55 of Word document and page 64 of pdf). 

The year-end valuation of the Scope Pension Scheme, which is closed to new members and to future accrual, shows a surplus of £14.4 million based on FRS17 assumptions (2014: surplus of £7.2 million). The increase in surplus is primarily due to a significant increase in the value of the scheme’s assets and the contributions made during the year, as agreed in the triennial valuation which starts on page 76 of the Word document and page 74 of the pdf.

This surplus cannot currently be recognised as an asset in the financial statements as no refunds have been agreed with the Scheme Trustees, nor is any reduction in contributions related to future service currently expected. The surplus is therefore capped to nil value in accordance with the requirements of FRS17. Further details are set out in note 12 to the financial statements. 

Net assets
Our consolidated net assets of £26.6 million have decreased by £3.9 million, reflecting the deficit for the year of £3.0 million, an actuarial loss relating to the Scope Pension Scheme of £1.0 million charged through the statement of financial activities in line with FRS17 principles and unrealised gains on our investment portfolio of £0.1 million. 

Our investment portfolio, as set out in note 14 to the financial statements, has decreased by £2.9 million, mainly as a result of a decrease in assets held as investments. 

Net current assets of £2.0 million are £2.0 million lower than last year. This is because of the £2.0 million repayment of the Scope Bond becoming a current liability with a repayment date of 31 May 2015 (see note 21 to the financial statements), on page 84 of the pdf and page 96 of the Word document.

This is also reflected in long-term borrowing of £4.6 million, which is £2.4 million lower than last year. The additional £0.4 million reduction arises from the staged payment of other loans as set out in notes 18 and 21 to the financial statements, which starts on page 83 and 84 of the pdf and page 94 of the Word document. 
Investment policy and performance
Our investment objectives are:
  • To cover short term financial risks: the objectives are to ensure security and liquidity of funds held. 
  • To preserve the value of the funds held in order to cover longer-term financial risks and funding for future development opportunities (measured over a rolling three-year period). 
  • To ensure low volatility in investment asset values (measured over rolling three year periods), to provide certainty for our short- to medium-term planning. 
  • To achieve a total return on investments greater than the UK retail price index measured over a rolling three year period. 

Royal London Asset Management (RLAM) was appointed as our investment managers to handle our investments in line with a mandate provided in May 2011. This is subject to an annual review by Trustees. 

The asset managers are assigned a benchmark split of the asset holdings of 41% cash or cash equivalents, 41% bonds and 18% equities within which to achieve our investment objectives. This policy aims to ensure that Scope’s unspent restricted funds and free reserves are held in assets that are secure and liquid, and also where their value is preserved in the longer-term. The balance between security, liquidity and maintaining long-term real value will be achieved through the asset allocations set under the policy. These asset allocations should reflect the reasons for our holding surplus funds (funds required at short notice versus funds required for the longer-term). 

We have also developed an ethical approach to our investments policy. This is described below:

1.    Investments are screened to exclude  investment in companies with significant trading interests in armaments, tobacco, pornography, alcohol, gambling, animal testing (outside of medical research for the benefit of humans). 
2.    The adoption of a balanced approach that only allows investment in companies that EIRIS (Experts in Responsible Investment Solutions) consider have adequate management systems that help to mitigate their environmental impact and adequate policies, together with systems to help manage their exposures to regions that EIRIS consider represent a ‘human rights risk’. 

The fund manager ensures, through positive selection, that wherever possible, companies within the portfolio exhibit appropriate policies regarding discrimination on the grounds of disability, age, religion, race or sex and sexual orientation. 

The performance of the investment portfolio (against the objectives, asset allocation and ethical criteria highlighted above) is formally assessed annually by the Resources Committee and reviewed monthly by management.

The value of our investments at March 2015 was £6.1 million. The asset allocation at March 2015 was 32% cash and cash equivalents, 44% ethical bonds and 24% ethical equities. This differs slightly to the assigned benchmark split due to a short-term draw down of cash that overlapped the year end. 

There was a net divestment of £2.9 million during the year to fund operations. This was necessary because of the delay in planned receipts from property sales.

Reserves policy
Our reserves policy aims to ensure that we hold sufficient funds to be able to mitigate the financial impact of events that lead to a shortfall in income or unplanned expenditure, and can take advantage of future strategic development opportunities that may arise. 

The policy focuses on the level of its ‘free’ reserves. Free reserves are defined as net assets excluding restricted funds, designated funds, and also that part of general and investment funds that has been used to acquire fixed assets for the charity’s own use. 

Our unrestricted funds at 31 March 2015 were £22.2 million (2014: £24.7 million). Of the £23.2 million carrying value of tangible fixed assets used by the charity, £0.9 million was held as assets within restricted funds and assets of £5.1 million were funded by long term loans. The resulting £17.2 million, representing tangible fixed assets held within unrestricted funds less related loans, was deducted from our unrestricted funds to arrive at the amount of our free reserves. The level of free reserves at 31 March 2015 was £4.9 million (2014: £6.8 million). Note 28 to the financial statements sets out the calculation of free reserves. 

The reserves policy is reviewed annually in the light of progress in delivering the strategy, our financial performance and the potential impact of other risks evaluated through the corporate risk register. 

As a result of the review, this year the reserves policy is unchanged and is based on allocating reserve levels against specific categories of risk, with a target for free reserves of £7 million, broken down as follows:
  • Short-term ‘in-year’ risks (£1 million)
  • Medium-term risks (£3 million)
  • Longer-term strategic change (£3 million)

The amounts set aside for the risks identified above are linked to the corporate risks highlighted in Principal risk and uncertainties

The financial performance during the year means that our free reserves of £4.9 million are below the target. Our investment in recent years in Fundraising and Retail is expected to deliver higher surpluses next year. This, combined with careful management of costs and a pipeline of property disposals, means that we have set ourselves the realistic target of restoring our free reserves to their £7 million level by March 2016. 
Review of the activities of the subsidiaries
During the year ended 31 March 2015, we had three active subsidiaries: Scope Central Trading Ltd, Mac Keith Press and Learning Disabilities Resources Ltd. The activities of Scope Central Trading Ltd and Mac Keith Press and their assets and liabilities are included in these financial statements on a line-by-line basis. Learning Disabilities Resources Ltd did not trade in the period ended 31 March 2015 so there is no result to report. Details of all our subsidiaries, including dormant entities are given in notes 6 and 15 to the financial statements. 

Scope Central Trading Ltd. 
The company’s main activities are the purchase and sale of new general merchandise, greeting cards, clothing and giftware in our retail shops, as well as generating income through other commercial services. 

All distributable profits generated are transferred to Scope as a Gift Aid payment. A resolution was passed by the Board of Directors on 17 March 2015, and communicated to Scope on 31 March 2015, that the Gift Aid payment would be provided for in the year to which the profits relate and, as a result, no deferred tax liability would arise. Technical guidance was issued by the Institute of Chartered Accountants for England and Wales (ICAEW) in October 2014 requiring that where a wholly owned subsidiary Gift Aids its profits to its parent charity, the payments are treated as distributions in the same way as dividends. Therefore this has been recognised as a liability and in equity in Scope Central Trading Limited’s financial statements.

The turnover for the year was £1.5 million (2014: £1.6 million). Net operating profit before the Gift Aid payment to Scope was £0.7 million (2014: £0.8 million). 

Mac Keith Press
Mac Keith Press is a wholly owned subsidiary charity whose central purpose is the advancement of the education of the public through promotion of research in the fields of child development and paediatric neurology. The main activity is the publication of a medical journal available on subscription entitled Developmental Medicine and Child Neurology, which is purchased by medical establishments and individuals throughout the world and is the leading scientific publication on child neurology. Mac Keith Press also publishes a series of professional specialist books, Clinics in Developmental Medicine. 

The charity’s income for this financial year was £0.6 million (2014: £0.6 million). Sales remain static overall with a surplus for the year of £0.1 million (2014: surplus of £0.1 million).


Plans for future periods

In 2015/16 we will continue to invest in key areas to deliver against our strategic direction.
We will develop a new organisational strategy, so that we are clear about our future shape and size, what new products and services we deliver and how we reach more disabled people through our work.

We will focus on the following corporate priorities in 2015/16:

1. Transforming our services, through

Continuing the care homes review
We have used our experiences during the care homes review to learn, and to improve the way we carry out and communicate service transformation projects. We will put this into practice when future projects enter consultation. 

Stepping up the pace of developing our future offer
We need to respond to changes in disabled people’s aspirations and to the new requirements of commissioners. 

We will continue to model our future service offer and create a longer term plan for our services. We will review our education provision, to assess how it can best support the rest of our future service offer. 

We will diversify our information service so that disabled people, their families and carers can get the information they need when they need it and be able to share their own practical tips and experiences. Our ambition is to develop an information offer that is responsive to the external environment and customer need. 

Driving increased personalisation through all of our services
We will start doing person-centred reviews in our services in 2015/16. However personalisation is about much more than carrying out reviews. It is a culture of thinking how best to support people to have choice and control. We need to embed this across our services.

Increasing our influence and awareness work
Continuing to raise our profile through media, social media and building on this year’s awareness drive

We will build on the success of End the Awkward by running a further major awareness campaign.

We will continue to reinforce our brand across Scope, so our staff and the public are more aware of all the different activities, services and projects we run.

We will work to increase the visibility of disabled people, especially as leaders and spokespeople, in the media.

Stepping up our influence work, prioritising our work on extra costs and social care
During 2014/15 and in the run-up to the General Election in May 2015, we worked to influence manifestos of all the main parties. Since the election we have begun to work with the new Government on our agreed priority areas, including social care, independent living, employment and the extra costs disabled people face. This work will continue through 2015/16.

There are large parts of the organisation that support our strategy and priorities, by raising money or keeping our infrastructure running smoothly. The delivery of our corporate priorities will be supported by:

An ongoing drive to change the culture of the organisation into one that is leaner and more efficient
A number of activities planned for 2015/16 will encourage us to change the way we work. This will change our organisational culture over time, for example:
  • Refining our leadership and management development programme and employee review process
  • Efficiencies projects
  • Establishing how our infrastructure and processes can support our future services and innovation projects
  • Rolling out internet connectivity to shops and creating regional technology hubs
  • Assessing the potential impact of new services at the development stage

Brilliant people – continuing to develop staff 
Our performance reporting tells us that our employee review process is embedded in the organisation. We now need to improve our talent and performance management by improving the quality of employee reviews.

Increased income generation from Fundraising and Retail

We will implement successful Fundraising projects such as the Lord Mayor’s Appeal and Ride London and grow our most successful products. Alongside this we will continue to explore and identify new ways to raise funds to support our work.

We will increase the financial surplus generated by Retail, trialling new concepts and constantly looking for ways to improve our stock generation.

Financial savings through driving greater efficiencies 
We are re-designing the efficiencies programme and this year will focus on making a small number of effective interventions. For example, we will take a more active and planned approach to management of our property portfolio. 

Overall, the budget for 2015/16 is designed to allow us to restore our free reserves position, while still allowing us to invest in the key areas of service transformation, raising awareness and developing our staff.

Principal risks and uncertainties

To provide assurance that we are managing our activities effectively, we have internal control systems and a framework of corporate assurance activities.

Our corporate risks reflect our day to day operations in terms of financial and legal and regulatory areas, but also reflect risks identified as we work to implement our strategy – transforming some services, designing new services consistent with our vision, raising awareness of Scope and developing our people to have the right skills.

Corporate risks are owned by members of our Executive Leadership Team. The Audit Committee is regularly updated on the progress of management actions, through updates to the Corporate Risk Register and performance reports. The Audit Committee also monitors our arrangements for internal and external audits and financial statements. 

Directorates identify risks as part of business planning and we actively manage a separate risk register for the services transformation programme. All identified risks are reviewed regularly. 

Our systems of internal control manage risk to a reasonable level but we recognise that we cannot eliminate all risk. External factors also impact our activities, for example:
  • Changes in market conditions – such as a downturn in the international rag market – can affect our retail income and stock markets and interest rates can go down or up, affecting the value of our investments;
  • Government policy could change to a more or less favourable view of our aims;
  • Funding challenges in the public sector could make it harder for local authorities to fund social care services;
  • Wider adverse publicity around large charities could lead to  reputational challenges and indirectly affect our income.

Our corporate risks

Our principal corporate risks during 2014/15 are outlined below, including management actions taken to mitigate against the likelihood of the risk occurring or its possible impact.

Strategic risks

1.    Service models are not consistent with our strategic direction and do not contribute to achieving our vision: Our own services need to be consistent with our vision of a world where disabled people have the same opportunities as everyone else. 
Mitigation: Our service transformation activities, including the care homes review, help to support disabled people to live independently in the community. We are also working to design our future services. We offer people information and advice by phone or online and provide services, such as Face 2 Face, in the community.

2.    Our profile is too low to support our strategic aims: If we are not well-known it is more difficult to influence, form strategic partnerships and ultimately bring about change. 
Mitigation: We continue to invest in public relations and media activity to increase our visibility. The End the Awkward campaign increased our profile, resulting in 4,000 new contacts. We invested in our brand, including our new visual identity.
3.    We do not have the capacity, capability or desired culture to deliver our planned objectives and our strategy
Mitigation: We rolled out management and leadership development programmes in 2014/15 to over 300 members of staff to improve capability. We streamlined our performance and development process, reducing the workload for managers and employees. 

4.    Our reputation is damaged: If this happened it could undermine our credibility, limiting our ability to achieve our strategic aims. 
Mitigation: We actively manage a reputational risk management process and risk register. We proactively plan communications around issues that could damage our reputation. 

Operational risks

5.   Our financial targets are not met: Without sufficient available funds it is harder for us to make the right investments in our people and our strategy. 
Mitigation: We regularly monitor our financial performance and forecast year end position through the year. When it became apparent this risk was becoming more likely for reasons discussed in the Financial Review section, we set targets for in-year cost savings. We hit those targets, so mitigated this risk as far as possible, but did not manage to achieve the budgeted year end position.

6.   Our long term financial sustainability is compromised: In-year income challenges had an impact on our reserves as we divested funds from our investments in order to fund our operations.
Mitigation: Actions to improve our financial position in the short term also help to mitigate this risk. We prepared a budget for 2015/16 designed to restore our reserves position and improve our longer term sustainability. 

Legal and regulatory risks

7.    We fail to comply with current Data Protection legislation: We identified some areas for practice improvements in this area in early 2014.  
Mitigation: We have improved our data security, by reviewing and communicating of relevant policies. We continue to monitor and review our arrangements.

8.    Poor quality service causes death, injury, abuse or harm to a customer, service user or member of staff: This risk focuses on the importance of maintaining quality and safety in our services, reflecting our corporate priority for 2014/15. 
Mitigation: We developed a project to bring together several practice improvement activities in 2014 for our new Quality team to implement. A specialist management group actively monitors the health, safety and well-being of customers and identifies priorities for improvement. Appropriate leadership groups and the Audit Committee all receive regular reports on safeguarding performance.

We have also registered and managed risks around:
  • Failing to demonstrate the value or impact of our activity;
  • Failing to gain support and collaboration from our stakeholders.


Financial risk management

In the ordinary course of its activities, Scope actively manages a variety of financial risks including credit risk, liquidity risk and interest rate risk. The control mechanisms as described below.

Credit risk

Credit risk is the risk that Scope would incur a financial loss if another party failed to discharge its obligations to the group. Scope is subject to credit risk from its investment assets held by various counterparties. However the risk is relatively small due to the nature of the investments and credit worthiness of the counterparties. The relevant aspects of Scope’s investments are:
  • Scope’s investments of £6.1 million are managed by Royal London Asset Management (RLAM). RLAM are an A- credit rated organisation. RLAM’s investment performance and credit rating are overseen by our Resources Committee. 
  • Scope’s main cash balances of £1.2 million are held in accounts managed by the RBS Nat West Group. Smaller cash management arrangements are also held with other UK based clearing banks. The credit rating of all these banks is taken into account when reviewing credit risk. 
  • Scope does not undertake transactions involving derivatives. 

Liquidity risk 

Scope will encounter liquidity risk if we have difficulties raising cash to meet our obligations when they fall due. Scope monitors its exposure to liquidity risk by regularly monitoring its level of cash and liquid assets and preparing rolling annual cash flow forecasts monthly. Scope keeps sufficient cash balances to cover its predicted obligations, plus a safety net which includes an overdraft facility. In addition Scope has access to £2 million of cash investments which can be drawn down within 48 hours. 

Currency risk

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

Interest rate risk

If the value of financial instruments or future cash flows fluctuates because of changes in interest rates, there is an interest rate risk. Scope has a number of interest bearing loans including the Scope investment bond, mortgages on properties and specific loans arranged with both institutions and individuals. The interest rates vary from 0% to 6%. The current annual interest payable on these loans is £263,000 per annum. Scope aims to minimise its exposure to risk by arranging fixed term interest rates where possible. However some loans are linked to bank base rate or can be renegotiated after a number of years. Scope has calculated that the increased interest cost of a 2% and 5% increase in base rate is currently £25,000 and £62,000 per annum respectively.

Market risk

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

Structure, governance and management

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

Alice Maynard stood down at the Annual General Meeting in October 2014, having served two terms as Scope’s Chair. Andrew McDonald was elected by members as a Trustee and appointed by the Board as Chair on 18 October 2014. 

Day-to-day management of the charity is delegated to the Chief Executive in accordance with the Scheme of Delegation. This document is reviewed annually by the Board and sets out which matters are reserved solely for decision by the Board and which are delegated to the executive. The Chief Executive reports progress on key areas of work to the Board on a regular basis. Richard Hawkes, who was Chief Executive from January 2010, left Scope in May 2015. Mark Atkinson will be the Interim Chief Executive until a permanent post holder is appointed.

Committees of the Board

There are five standing Committees of the Board: Audit, Development, Nominations, Remuneration and Resources. The Remuneration Committee was established this year and met for the first time in March 2015. Their roles are described below.

Audit – oversees the development and monitoring of the corporate assurance framework, provides assurance to the Board that appropriate frameworks and processes are in place and oversees internal and external audit arrangements and processes. 

Development – assures the Board that proposals on new activities or changes to existing activities presented to them have been reviewed with due consideration to Scope’s stakeholders and gives the Board recommendations accordingly. Stakeholders include Scope’s beneficiaries, service users, disabled people and disabled people’s organisations, and Scope’s Members. 

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

Remuneration – sets remuneration policy for Scope, ensuring it supports the strategic aims of the organisation and is appropriate, relevant and competitive. Through the Remuneration Committee, Board members have a say in what remuneration levels are appropriate and fair, including at senior executive level. The Remuneration Committee is currently reviewing arrangements for senior executive pay and assessment of performance. 

Resources – provides assurance to the Board that the charity is using its resources and assets appropriately. Its areas of focus include Finance, Human Resources, Property and IT. 

Membership of all five committees includes both Trustees and independent members. Committee members contribute to Board meetings on relevant items discussed at the committee meetings. Each committee provides an annual report to the Board, outlining how it has worked to its terms of reference and outlining key areas of work from the reporting year. 

Trustee recruitment

Members of Scope appoint Trustees for up to two terms of three years. We recruit candidates depending on the skills and experience the Board needs. The Nominations Committee oversees the process and recommends candidates to Scope’s Members. The Nominations Committee identifies the skills, experience and knowledge that the Board needs and recruits candidates on this basis. The Committee then proposes candidates for election by the Members at the Annual General Meeting. 

Board induction

All new Trustees attend an induction programme to ensure their understanding of the role of Trustees under charity law and being a Director under company law. Induction also provides an overview of the history of Scope, its structure, mission and strategic direction. Trustees also visit Scope services and shops and meet with staff who provide more information on areas of Scope’s work. 

A ‘buddy’ system, where incoming Trustees have the opportunity to work more closely with longer standing Trustees, has also been an effective part of induction. The Board has a programme of activities that focuses on its overall development and assesses its effectiveness. 

Scope Assembly

Trustees and members of the Executive Leadership Team regularly meet with a group of Members elected by their peers: the Scope Assembly. Meetings take place twice a year and are opportunities for the Board and Executive Leadership Team to involve the Members in key pieces of Scope’s work.


Employee involvement and the employment of disabled people

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

We are committed to equal opportunities and we encourage job applications from disabled people. Additionally, in support of our strategy, we are actively working towards becoming a great place to work for disabled people, recognising the immense contribution that a diverse workforce of volunteers and employees bring.  

To help managers provide appropriate support for disabled people working at Scope, diversity and awareness training is included in our development programme for managers. This year we also identified and trained a network of 20 Access Champions, who can support employees to ensure appropriate and reasonable adjustments are made.


Statement of Trustees' responsibilities

The Trustees (who are also directors of Scope for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and the group for that period. In preparing these financial statements, the Trustees are required to:
  • select suitable accounting policies and then apply them consistently;
  • observe the methods and principles in the Charities SORP;
  • make judgments and estimates that are reasonable and prudent;
  • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charitable company’s website. 

Disclosure of information to auditors

The Trustees who held office at the date of approval of this Trustees’ report confirm that, so far as they are each aware, there is no relevant audit information of which the company’s auditors are unaware, and that each Trustee has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

The Board of Trustees will be recommending to the members at the annual general meeting that PricewaterhouseCoopers LLP is reappointed as auditor of Scope for the forthcoming year.

The Trustees’ Report and Strategic Report were signed on behalf of the Trustees by Andrew McDonald, Chair
24 July 2015.


Independent auditors' report to the members of Scope


Report on the financial statements

Our opinion
In our opinion the financial statements, defined below:
  • give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2015 and of the group’s incoming resources and application of resources, including its income and expenditure  and the group’s cash flows for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.

This opinion is to be read in the context of what we say in the remainder of this report.

What we have audited
The group financial statements and parent charitable company financial statements (the “financial statements”), which are prepared by Scope, comprise:
  • the group and parent charitable company balance sheet as at 31 March 2015;
  • the group statement of financial activities incorporating the income and expenditure account for the year then ended;
  • the group cash flow statement for the year then ended;
  • the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In applying the financial reporting framework, the Trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.

What an audit of financial statements involves

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: 
  • whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed; 
  • the reasonableness of significant accounting estimates made by the Trustees; and
  • the overall presentation of the financial statements. 

In addition, we read all the financial and non-financial information in the Annual Report and Consolidated Accounts to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.


Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Trustees’ Annual Report, including the Strategic Report, for the financial year for which the financial statements are prepared is consistent with the financial statements.

Other matters on which we are required to report by exception

Adequacy of accounting records and information and explanations received

Under the Companies Act 2006 we are required to report to you if, in our opinion:
  • we have not received all the information and explanations we require for our audit; or
  • adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
  • the parent charitable company financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.

Trustees’ remuneration

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

Responsibilities for the financial statements and the audit

Our responsibilities and those of the Trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the charity’s members and Trustees as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Lynn Pamment (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors

28 July 2015 

(a)  The maintenance and integrity of the Scope website is the responsibility of the Trustees; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

(b)  Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.


Scope's Directors and Trustees

The Trustees who were in office during the year and up to the date of signing the financial statements are given below:

Celia Atherton OBE 
Agnes Fletcher 
John Gilbert (Treasurer)
Malcolm Hayday CBE (stood down October 2014)
Tony Hunter OBE 
Rupy Kaur
Richard Jones CBE (re-appointed October 2014)
Dr. Alice Maynard CBE (Chair until October 2014)
Victoria McDermott (Vice-Chair, re-appointed October 2014)
Dr. Andrew McDonald CB (Chair, appointed October 2014)
Amanda Phillips (stood down July 2014)
Gavin Poole 
Grethe Ridgway (stood down October 2014)
Hilary Samson-Barry 
Clare Thomas MBE 
Rachael Wallach


Thank you to all of our supporters, including:

The 29th May 1961 Charitable Trust
Anant Shah
Anne Reece
Anthony Collins Solicitors
Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc
BACIT Foundation
The Baily Thomas Charitable Fund
The Barrow Cadbury Trust
BBC Children in Need
Building Societies Trust Limited
Carraresi Foundation In memory of Augusto Carraresi
Credit Suisse EMEA Foundation
The David and Claudia Harding Foundation
The Dowager Countess Eleanor Peel Trust
Ecclesiastical Insurance
The Edith Murphy Foundation
The Eveson Charitable Trust
Field Fisher
Foot Anstey
The Howard de Walden Estate
Irwin Mitchell Solicitors
Isabel Hudson 
Jane Hodge Foundation
John and Norah Burton (legacy gift)
The John Coates Charitable Trust
John Ellerman Foundation
Neil Blackley 
Pears Foundation
Penningtons Manches LLP
People's Health Trust 
Peter Brewer
Richard Bradbury CBE 
Richard Farr
Richard Herring
The Sandra Charitable Trust 
Simpson Millar LLP
Slater & Gordon 
The Souter Charitable Trust
Standard Life Group
Steve Brosnan
Swiss Re Services Limited
Virgin Media 
Withy King LLP
The Zochonis Charitable Trust


Legal and administrative details

Scope is a charitable company (Charity Registration Number 208231 and Company Number 520866). 

Independent Auditors: PricewaterhouseCoopers LLP, 1 Embankment Place, London, WC2N 6RH

Solicitors: Bond Dickinson LLP, Prince’s Wharf, Teesdale, Stockton on Tees, TS17 6QY

Bankers: National Westminster Bank plc, City of London Office, Corporate Business Centre, PO Box 12263, 1 Princes Street, London, EC2R 8PH

Investment Advisers: Royal London Asset Management, 55 Gracechurch Street, London, EC3V 0UF

Company Secretary: Jacqui Penalver

Registered Office: 6 Market Road, London, N7 9PW