tpp finance breakfast seminar
TRANSCRIPT
TPP Finance Seminar4th July 2017
Finance Salary Survey
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Judith Miller
Partner, Sayer Vincent
TPP
4 July 2017
Compliance & communication Conveying impact through your annual report
Critically important: Trust & confidence
5
Achieving your objectives….
• Who is your audience?
• Who are your stakeholders?
• What’s your message to them?
• What do they care about?
6
Transparency …Honesty…
“tell the charity’s story in a fair and balanced
manner, acknowledging both significant successes
and failures”
(FRS 102 SORP 2015)
7
Obligation to Opportunity
• Key requirements
• Who is your audience?
• Good examples
8
Overview & purpose ref : FRS 102 SORP 2015
• “ensure the charity is publicly accountable”
• “should be a fair, balanced and understandable
review”
• “what the charity is set up to do, how it is
going about it and what is achieved”
• “essential link between…legal purposes…aims
and objectives …activities”
Who is your audience?
Public,
beneficiaries
Donors/funders
Trustees, management
Regulator
Performance, delivery, summary
Technical, compliance
10
Head and/or Heart
• Are you
looking to comply and satisfy the regulators?
looking for support and engagement? financially or with
time or…?
answering the “so what” question?
11
Different vehicles• Trustees’ annual report & financial statements
Legal requirement
Black & white compliance version
Stand alone segments
• Annual review
Choice
A “glossy” – web or hard copy
Short & sweet with high level financials
• Impact report
Choice
Annual or ongoing snippets
12
Process & people
• Who needs to be involved? Design team?
• What’s the timeline?
• Advisable – start early
• How does TAR & accounts fit within your
communications strategy?
• Hard copy? Soft copy?
SORP requirements for all charities
•Objectives and activities
• Structure, governance and management
• Achievements and performance
• Financial review
• Plans for the future
• Reference and admin details
Objectives and activities
• What are your objects? What do you do to achieve them?
• Explain public benefit
• Issues to be tackled and how this will deliver against legal objects
• Details of programmes, projects and activities
• Idea of short and longer term aims
• Use of volunteers
Structure, governance & management
•Nature of your governing document
•Methods of recruitment and appointment of trustees
•Organisational structure
•How decisions are made
• Trustee training and induction
• Remuneration policy
•Wider network
Achievements and performance
• Summary of main achievements
•Qualitative and quantitative information
• Performance against objectives
• Comment on fundraising performance
•What has contributed to performance –positive and negative?
•Measures and numerical targers
• Comment on investments
Financial review
• Review of the position at the year end and performance
• Reserves policy
• Any uncertainties around going concern – explain
• Subsidiaries and funds position –any in deficit – explain
• Answer any questions?
Financial review
• Principal risks and uncertainties
• Investment policy and objectives
• Financial effect of significant events
• Future factors that might affect performance
• Financial impact of pension liability
• Explain the policy for holding reserves
• State the amount of reserves held and why
• If trustees have decided that holding reserves
is unnecessary, the trustees’ report must
disclose this fact and provide reasons behind
the decision
Reserves disclosures - smaller charity
19
• Amount of total funds held at year end
• Identify restricted funds & designated
• Indicate likely timing of designated funds expenditure
• Identify funds tied up in fixed assets
• State free reserves (unrestricted, undesignated, not fixed assets)
• Compare free reserves to reserves policy and explain
steps being taken to bring into line with policy
Reserves disclosures - larger charity
20
“To be or not to be?”
• The “going concern” assumption
• Are we? How far ahead do we need to look?
• Are there any “material uncertainties”?
• What do we need to say/do?
• What does the auditor say/do?
22
Content, context & communication• Focus on overall coherent document
• Place this year’s performance in the context of
your overall strategy - past, present, future
• Linkage to non financial stats too
• Stories & case studies
• Graphics
• Any order
• Linkage of key policies – reserves,
investments, grant making, risk
Report income and expenditure in line with
activities reported in the trustees’ annual report
• How charity has used resources to further its
charitable aims for public benefit
• Single document
• What are the key charitable activities?
Link trustees’ report and SoFA
23
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Seek out examples
• Those operating in a similar space
• Award winners eg PWC Building Public
Trust awards 2016
• CharityComms – comms perspective
Updated April 2017
• Other sectors: NAO Examples of good
practice in annual reports
25
Source: BHF annual report
26
Source: Water Aid annual report
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Source: Prostate Cancer UK annual report
28
Source: National Autistic Society annual report
29
Source: BHF annual report
30
Source: National Autistic Society annual report
31
Source: Dogs Trust annual report
32
Source: Action against hearing loss annual report
33
Source: BHF annual report
34
Source: RNLI website annual report 2015/16
35
Source: Action Against Hearing Loss annual report
36
Source: Water Aid annual report
37
Source: BHF annual report
38
Source: Dogs Trust annual report
39Source: CRUK annual report 2015/16
40Source: CRUK annual report 2015/16
41
Source: Dogs Trust annual report
42Source: CRUK annual report 2015/16
CharityComms – comms perspective
www.charitycomms.org.uk/articles/a-year-in-the-life
Charity Commission SORP microsite
www.charitysorp.org
Charity reporting and accounting: the essentials CC15d
Sayer Vincent www.sayervincent.co.uk
Reading charity accounts made simple
Reserves policies made simple
Beyond Reserves
SORP 2015 made simple
Signposting to resources
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Judith Miller
Sayer Vincent LLP
www.sayervincent.co.uk/
www.twitter.com/sayervincent
@SV_JudithMiller
Questions?
44