Treasurer’s ReportNet IncomingResourcesCharitableExpenditureSurplus/(Deficit)UnrestrictedReservesDEBRA had a successful year financially in <strong>2012</strong>, with a netincome of £2.7m and an operating surplus of £700k. Thefinancial objective for the year was to maintain reserves at thepolicy level of £900k undesignated cash-backed freereserves. This was achieved whilst still maintaining the samelevel of charitable expenditure as 2011 in addition todesignating a further £951k for future research. Outlinedbelow is a table of the last 6 years’ results, showing themovement in DEBRA’s financial position over that period.<strong>2012</strong> 2011 2010 2009 2008 2007£2,659,050 £3,907,903 £2,740,354 £2,063,630 £2,100,845 £2,297,146£1,959,941 £2,009,763 £1,993,962 £1,719,547 £2,343,273 £2,685,327£699,109 £1,898,140 £746,392 £344,083 £(242,428) £(388,181)£3,132,175 £2,656,840 £1,300,109 £549,367 £218,499 £392,774The surplus during <strong>2012</strong> and the resulting growth in reservesis a commendable achievement by the charity during aperiod of economic austerity. The charity is financially strongand can make new commitments to charitable expenditure in2013 with confidence. Net fundraising income from the verysuccessful Sohana Research Fund achieved £386k in <strong>2012</strong>compared with £943k in 2011. On the retail side, there wassignificant planned expansion into leased shops in <strong>2012</strong>,including two large Furniture and Electrical shops. Set upcosts associated with this expansion were written off asincurred, which was the major contributing factor to net retailincome dropping by £527k compared with 2011.DEBRA remains one of the charity sector’s top retail giftaid performers, achieving 40% of sales gift aided in <strong>2012</strong>.This enabled the charity to reclaim £670k from the HMRC inthe year.Although charitable expenditure remained static at £2mduring <strong>2012</strong> compared with 2011, there are plans in place tosignificantly increase this in future periods. There was abalance of £786k in the Sohana Research Fund at the end ofthe year, which will be spent on new Recessive DystrophicEB research projects and clinical trials. In addition, during<strong>2012</strong> the trustees designated a further £951k to futureresearch projects.DEBRA negotiated increased funding from the NHS for theEB nursing service from 1st April 2011, which saved DEBRA£243k in <strong>2012</strong>. This amount has been designated for newhealth and EB Community Care projects, ensuring all savingsare ploughed back to the benefit of the EB community. Ongoingsavings will continue to be added to the fund, withinwhich a contingency of £150k will be held as a buffer in theevent of future withdrawal of funding. Expenditure from thisfund was £79k in <strong>2012</strong>, and is expected to increase in futureperiods as new projects are developed.Unrestricted reserves grew during <strong>2012</strong> from £2.7m to £3.1mand after accounting for designated funds, the general funddeclined from £1.7m to £1.4m. There was significant growthin restricted reserves from £583k to £807k, largely from thegrowth in the Sohana Research Fund. Total designated fundsgrew during the year from £974k to £1.7m.Cash-backed free undesignated reserves were at therecommended policy minimum level of £900k. Thesereserves are both unrestricted and undesignated, andexclude all fixed assets except 50% of unrestricted freeholdproperty. This represents the level of reserves the charity canaccess immediately, or mortgage at short notice, which arenot designated for a specific purpose.The support from DEBRA’s Royal Patron HRH The Countessof Wessex, the Appeals Council and DEBRA’s PresidentMichael Portillo have all been invaluable during <strong>2012</strong>.Summary accounts are shown on the next page. These havebeen prepared from the full financial statements of DEBRA,on which the auditors expressed an unqualified opinion, andwhich will be put to the members for approval at the AGM on18th May 2013. The full financial statements are filed eachyear with the Charity Commission and the Registrar ofCompanies. The summarised financial accounts shown hereare not the company’s statutory accounts and may notcontain enough information to allow for a full understanding ofthe financial affairs of DEBRA. For further information, the fullfinancial statements should be consulted, copies of which willbe available on request from the DEBRA office.David SpenceThe auditors’ statement on summarised financial statementsIndependent Auditors’ statement to the Members ofDEBRAWe have examined the summary financial statement for the yearended 31 December <strong>2012</strong>.Respective responsibilities of trustees and auditorThe trustees are responsible for preparing the summarisedannual report in accordance with applicable United Kingdom law.Our responsibility is to report to you our opinion on theconsistency of the summary financial statement within thesummarised annual report with the full annual financialstatements and the Trustees’ Report, and its compliance with therelevant requirements of section 427 of the Companies Act 2006and the regulations made there under.We also read the other information contained in the summarisedannual report and consider the implications for our report if webecome aware of any apparent missstatements of materialinconsistencies with the summary financial statement. The otherinformation comprises only the Treasurer’s report.Our report has been prepared pursuant to the requirements ofthe Companies Act 2006 and Charities Act 2011 and for no otherpurpose. No person is entitled to rely on this report unless sucha person is a person entitled to rely upon this report by virtue ofand for the purpose of the Companies Act 2006 and CharitiesAct 2011 or has been expressly authorised to do so by our priorwritten consent. Save as above, we do not accept responsibilityfor this report to any other person or for any other purpose andwe hereby expressly disclaim any and all such liability.Basis of opinion: We conducted our work in accordance withBulletin 2008/3 ‘The auditors’ statement on summary financialstatement in the United Kingdom’ issued by the AuditingPractices Board. Our report on the charity’s full annual financialstatements describes the basis of our opinion on those financialstatements and on the Trustees’ Report.Opinion: In our opinion the summary financial statement isconsistent with the full annual financial statements and theTrustees’ Report of DEBRA for the year ended 31 December<strong>2012</strong> and complies with the applicable requirements of section427 of the Companies Act 2006, and the regulations made thereunder.We have not considered the effects of any events between thedate on which we signed our report on the full annual financialstatements (1 May 2013) and the date of this statement.Auditors: BDO LLP, Statutory Auditor, Gatwick, United Kingdom,24th April 2013BDO LLP is a limited liability partnership registered in England and Wales(with registered number OC305127)16
Financial overviewSummary Statement of Financial Affairsat 31 December <strong>2012</strong>Summary Balance Sheetat 31 December <strong>2012</strong><strong>2012</strong> 2011Income££Voluntary 1,774,624 1,816,586Corporate 291,700 619,257International 1,023 1,046Grants Receivableand Trust Income169,873 188,089Legacies 461,869 566,015Trading - Shops 7,381,003 7,696,891Trading - Events 818,469 910,978Other Income 100,962 124,387Bank Interest 44,882 55,747Total 11,044,405 11,978,996Costs of Generating FundsFundraising Activities - Shops 7,306,913 7,095,751Fundraising Activities - Events 502,497 476,494General Fundraising & Publicity 575,945 499,028Total 8,385,355 8,071,093Net incomingresources availableCharitable Expenditure2,659,050 3,907,903Research Grants 717,954 882,200Healthcare 462,867 489,839EB Community Care 382,704 271,979Respite Breaks 18,819 30,639Public Education 218,822 189,192Governance Costs 158,775 145,914Total 1,959,941 2,009,763Performance IndicatorsCharitable spend per £ raised(including net trading activities)Fundraising efficiency(excluding trading activities)Retained Surplusas a % of income<strong>2012</strong>£2011£Fixed Assets and Investments 792,434 688,987Current Assets 5,630,369 4,815,018Creditors (2,463,046) (2,158,816)Net Current Assets/(Liabilities) 3,167,323 2,656,202Long Term Creditors (20,147) (104,688)Total assets less liabilities 3,939,610 3,240,501Represented by:Restricted Funds 807,435 583,661Unrestricted Funds– designated1,699,742 973,622Unrestricted Funds– general fund1,432,433 1,683,218Total 3,939,610 3,240,501<strong>2012</strong> 201161p* 45p79.8% 85.2%6.3% 15.8%*There has been a significant increase in reserves during thelast two years for future increased charitable spend.The charitable spend plus increase in reserves per £ raisedwas 82p in <strong>2012</strong> (2011: 89p).Net Income 699,109 1,898,140Fund balances b/f 3,240,501 1,352,361Fund balances c/f 3,939,610 3,240,501CharitableExpenditurePublic EducationRespite BreaksGovernanceCostsResearch GrantsEB Community CareHealthcare17
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