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Financial Review The financial situation was very difficult in the previous year with a shortfall on income resulting in the Director reducing his hours to part time in order to reduce costs. This year has seen a marked improvement and finances are much more stable. However, the type of funding that we receive makes it difficult to sustain things from year to year. The Trustees continually review the levels of expenditure and balance the resources we have against what we need to achieve and how much it costs. In the forthcoming years we are looking to develop a more sustainable range of income sources including long term contracts and regular giving programmes. Generally, expenditure has been managed very well and the overall situation is quite steady. In the year income was £135,726 compared with £134,355 in 2005/6 showing a small improvement, most of which is restricted finding. Expenditure was £136,729 compared with £140,967 in the previous year. The balance for the year, including the balance brought forward, is £31,178 from which there are future liabilities of £25,464 for commitments from restricted funds to be met. This situation has left us with a small surplus on unrestricted funds of £5,714, which equates to less than one month’s expenditure at current levels. We have worked very hard over the last year on fundraising with modest success which has kept things steady but more work needs to be done to build a contingency and provide some security for our much relied on services. Reserves/Contingencies The overall balance of £31,178 includes £25,464 of restricted funds which can only be spent on items which the grant makers have authorised, such as salaries and training. The remaining unrestricted amount of £5,714 is well below the target of six months running costs that we planned as a desired reserve. The unrestricted surplus is committed to sustain our existing levels of service. Notes to the Statement of Financial Activities The Friends of Bessborough, and the Friends of Charlken are separate registered charities and submit their own accounts to the Charity Commissioners. Accordingly their figures are not consolidated in the accounts for Community Link-Up. The Friends for Friends/Harrow Project have a balance of £745, and Changes Nightclub have a balance of £432 which are included in the balance of restricted funds at 31 March 2006. The breakdown of the surplus on Restricted Funds is as follows:
Our future plans Our future plans will involve concentrating in meeting the waiting list demands for our services and support. Over the coming year we will be organising a number of events: Organising a number of volunteer recruitment drives and training sessions within the community. Facilitate new 1:1 friendships. Securing new work placements for our clients with local businesses. Provide work experience placements in basic office skills at our offices for special needs students from local schools. Supporting young people with learning disabilities in transition from childhood to adulthood. Arranging sound and lighting workshops for 12 clients interested in dj-ing at Changes Nightclub. Arranging a first aid course as requested by members of the changes nightclub steering group and junior club volunteers. Sending our clients on holidays specifically catering for people with disabilities. Risk Assessment In accordance with SORP 2000 the Trustees confirm that they have reviewed and implemented systems to mitigate identified risks to which the charity is exposed. The risks considered relate to the operational activities of the charity and achievement of its aims and objectives. These include risks in the structure of governance, operational risks, financial risks, external risks and compliance with the law and regulations. The following factors have been taken into account when identifying potential risks and appropriate controls: The nature of the work
and the organisation’s objectives and strategies. Reserves Policy The charity aims to maintain appropriate reserves to cover up to six months operating costs plus a contingency for potential redundancies, uninsurable business interruption and legal costs. The reserves may be used for times when funding may become difficult and to take advantage of new business opportunities. Treasurer/Secretary Finally, we must say thank you to our long serving Treasurer and Secretary, Graham French who has provided invaluable service to Community Link Up as a volunteer for over 10 years.
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Link Up is part of Community Link-Up - Registered Charity No. 1060481 |
