Net obligations under bank loan is payable as follows
Between one and two years
Between two and five years
More than five years
In 2011/12 RNIB exercised its option to convert a three-year revolving loan agreement with the AIB Group (UK) plc to finance the redevelopment known as the RNIB Pears Centre for Specialist Learning in Coventry into a 23-year mortgage secured over the freehold property at Coventry. At 31 March 2013 the amount owing on the loan is £22million (2012: £23million).
Interest is charged on the loan at 0.85 per cent above the three-month LIBOR rate. RNIB has entered into a swap with AIB under which for the period 30 December 2011 to 31 December 2026 the interest charged on the outstanding amount of the loan, less £500,000, is at a fixed rate of 5.05 per cent.
Under the terms of the mortgage RNIB undertakes to maintain the aggregate of Designated and General Reserves at a level 25 per cent above the amount outstanding at any time. At 31 March 2013, with the amount outstanding at £22,000,000 (2012: £23,000,000) the level of such reserves has to exceed £27,500,000 (2012: £28,750,000) and the actual level of such reserves stands at £82,191,000 (2012: £83,302,000).
The Group creditors greater than one year includes £205,000 (2012: £213,000) outstanding against a £250,000 loan from Unity Trust Bank plc provided to NTNM, secured by a first charge on their National Recording Centre. This was paid in full on 28 June 2013. It also includes £144,000 (2012: £144,000) secured on freehold property transferred from the Blind Society for North Tyneside Limited, which merged with Action in 2010/11.
Investment fund: The purpose is to fund major projects furthering the strategic business plan. The transfer represents new designations of £2,545,000 in relation to the CRM and digital projects which is offset by the acquisition of fixed assets in the sum of £26,000 and transfers to other funds of £88,000.
Mergers fund: This fund is designed to meet the costs of transition and future development of services relating to organisations that have merged with RNIB.
Service property and associated facilities development fund: The purpose is to fund capital building projects. The £461,000 transfer includes new designations of £870,000 relating to the Redhill Development Project and £59,000 transfer from general funds, offset by the acquisition of fixed assets in the sum of £383,000 and a release back to the general fund of £85,000 in respect of the land at Peterborough.
Operational equipment fund: The purpose is to fund planned capital acquisitions. The £1,053,000 transfer represents a £1,045,000 designation from the general fund for general capital acquisitions and the transfer to other funds of £178,000 offset by the acquisition of fixed assets in the sum of £170,000.
Information technology infrastructure fund: The purpose is to ensure that the information technology infrastructure is robust. The £880,000 transfer represents a planned designation of £250,000 towards the fund as well as a net transfer from other funds of £762,000 offset by the acquisition of fixed assets in the sum of £132,000.
Repairs and maintenance fund: The purpose is to fund a rolling programme of regular property maintenance. The £947,000 transfer represents new designations of £982,000 to cover planned expenditure within this programme offset by the acquisition of fixed assets in the sum of £35,000.
Net book value – service properties: The purpose is to recognise the value, net of long term debt, of RNIB’s service properties that are unavailable to free reserves. Such fixed asset properties held in the associated charities are recognised within the restricted funds. The transfer comprises £300,000 added back to freehold land from property held for sale in respect of the land at Peterborough, other additions amounting to £5,000, offset by disposals amounting to £58,000 and a reduction in the long term debt of £1,000,000 relating to the loan repayment regarding the redevelopment at the RNIB Pears Centre for Specialist Learning.
Net book value – other fixed assets: The purpose is to recognise the value, net of long term debt, of RNIB’s other fixed assets that are unavailable to free reserves. Such other fixed assets held in the associated charities are recognised within the restricted funds. The transfer comprises additions amounting to £838,000, offset by disposals amounting to £14,000.
The restricted fund under Glynn Vivian within the Charity referred to the value of the property held by RNIB as trustee which
has been sold in the year.
Restricted fund balances may be in a deficit situation pending future receipts where such funding is given on a reclaim basis and at 31 March 2013 such deficit balances amounted to £173,000 (2012: £201,000), which lies within “Donations for specified equipment”, “SEED (Social Enterprise and Employment Development)” and “Trainee Grade Scheme: Extending the Reach”.
The amounts included within “Group” represent the net assets at fair value of the associated charities, other than those held within endowment funds.
During the year, the Charity applied to The Charity Commission to apply a total return approach to The Sunshine Endowment Fund. This resulted in the release of the unapplied total return amounting to £777,000 to general funds. Within the balance at 31 March 2013, the value of the gift element of the permanent endowment was £323,000 (2012: £323,000) and the unapplied total return was £51,000 (2012: £717,000).