RBS 2010 Annual Report Download - page 236

Charitable contributions
In 2010, the Group’s overall community contribution was £56.1 million
(2009 - £63.9 million). The total amount given for charitable purposes by
the company and its subsidiary undertakings during the year ended 31
December 2010 was £29.6 million (2009 - £34.7 million).
To ensure it makes its community investments as effective as possible,
the Group’s policy is to focus its resources on a small number of
substantial strategic programmes. These are issues most relevant to a
financial institution and relate broadly to financial education, supporting
enterprise and microfinance and the charitable endeavours of employees.
Political donations
At the Annual General Meeting in 2010, shareholders gave authority
under Part 14 of the Companies Act, for a period of one year, for the
company (and its subsidiaries) to make political donations and incur
political expenditure up to a maximum aggregate sum of £500,000. This
authorisation was taken as a precaution only, as the company has a
longstanding policy of not making political donations or incurring political
expenditure within the ordinary meaning of those words. Shareholders
will be asked to renew this authorisation at the Annual General Meeting in
2011.
During 2010, the Group made no political donations in the UK or EU. In
keeping with the Group’s employment policies, Coutts & Company
allowed a member of staff paid leave during the year to stand for election
at the UK General Election. This might constitute political expenditure for
the purposes of the Companies Act, as the definition in the Companies
Act is capable of having a very wide meaning. The amount of expenditure
in relation to the paid leave was £2,128.
RBS Services Australia Limited, a company acquired by the Group
through its acquisition of ABN AMRO, made donations of AUS$126,552
(£75,397) during 2010 to Australian political parties and Australian party-
affiliated fundraising vehicles. These payments were fully compliant with
ABN AMRO policy and Australian electoral law. No further donations will
be made and it is not proposed that the Group’s longstanding policy of
not making contributions to any political party be changed.
Policy and practice on payment of creditors
The Group is committed to maintaining a sound commercial relationship
with its suppliers. Consequently, it is the Group’s policy to negotiate and
agree terms and conditions with its suppliers, which include the giving of
an undertaking to pay suppliers within 30 days of receipt of a correctly
prepared invoice submitted in accordance with the terms of the contract
or such other payment period as may be agreed.
At 31 December 2010, the Group’s trade creditors represented 29 days
(2009 - 30 days) of amounts invoiced by suppliers.
Directors’ disclosure to auditors
Each of the directors at the date of approval of this report confirms that:
(a) so far as the director is aware, there is no relevant audit information of
which the company’s auditors are unaware; and
(b) the director has taken all the steps that he/she ought to have taken as
adirector to make himself/herself aware of any relevant audit information
and to establish that the company’s auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with
the provisions of section 418 of the Companies Act.
Auditors
The auditors, Deloitte LLP, have indicated their willingness to continue in
office. A resolution to re-appoint Deloitte LLP as the company’s auditors
will be proposed at the forthcoming Annual General Meeting.
By order of the Board
Aileen Taylor
Secretary
23 February 2011
The Royal Bank of Scotland Group plc
is registered in Scotland No. 45551
RBS Group 2010234
Report of the directors continued