Financial Review

Financial Management and Reserves Policies

The Society has a Financial Management Policy which meets the requirements of the Charities Act 2006, the Charity Commission guidelines Internal Financial Controls for Charities and Accounting and Reporting by Charities: Statement of Recommended Practice (Revised 2005).

The Society is currently operating with two funds. The General Fund is unrestricted and is used for the day-to-day operation of the Society. The New Horizons fund is a restricted fund opened in 2006 to support the New Horizons project. When making public appeals for the New Horizons project the trustees have made provision that any surplus may be transferred to the General Fund to further the objects at the discretion of the trustees.

The Society operates with an unrestricted reserve at a level set by the trustees; currently this is £4,500. The reserve is held to allow the Society to offset fluctuations in income receipts and to provide for contingencies. The reserve level was reviewed in the year to 31^st March 2009 to reflect increased rents and utility bills. Reserves are held without any exposure to the stock market. At March 31^st 2009 the General Fund had a balance £5,717.

Financial Performance

Financial performance in the year to March 31^st 2009 has been broadly consistent the trustee£s forecasts and expectations.

Detailed reviews of Income and Expenditure are presneted in the next two sections.

Support in Kind

We are also very fortunate to have amongst our members a wide range of skills and experience which can be called upon including electrical and fire safety testers, engineering and building skills, ICT, public relations, management, planning and logistics. Having these skills "in house" is a great benefit to Society.

In addition to time members routinely make material donations and many costs such as internet hosting and stationary, printing, or postage costs are not reclaimed from the Society, reducing operating expenditure.

The Society receives a great deal of support in kind, whilst it is difficult to obtain exact figures the table below provides an estimate the time and effort given freely by members. This time is given freely and is therefore not included as value in the accounts; however at an hourly rate of £6.93 (National Minimum Wage of £5.73 per hour with on costs of 21%) the total time, some 5,715 hours, invested voluntarily would have a value in excess of £39,600 per year; the true value to the Society is much greater than this.

Funds Materially in Deficit

As at March 31^st 2009 the Society had no funds in material deficit.

Major Risks

The Trustees have not identified any major risks to which the Society is exposed.

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