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TPP Finance Seminar4th July 2017
Finance Salary Survey
• 79% of senior finance professionals also responsible for IT department
• 53% of respondents plan a career move within 12 months
• Flexible working most desired benefit, only 44% of respondents currently get this
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
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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
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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
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• 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?
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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
27
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
43
Judith Miller
Sayer Vincent LLP
www.sayervincent.co.uk/
www.twitter.com/sayervincent
@SV_JudithMiller
Questions?
44