getting your annual report right
DESCRIPTION
This presentation on Better annual reports was given by Caron Bradshaw, Gill Gibb and Kate Sayer. This was given at the Evolve 2013 conference. Find out more about NCVO events: http://www.ncvo.org.uk/training-and-events/events-listingTRANSCRIPT
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Better annual reports
Caron Bradshaw, Gill Gibb and Kate Sayer
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Agenda
• Scene set - annual report basics• Sharing good practice, avoiding bad!• Compliance; from burden to blessing
• Risk, reserves
• Impact
• Making the most of your messages• Consistency, clarity, conciseness
• Tell the story of the numbers
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Basic structure:• Trustees Report• Independent Auditors Report• Statement of Financial Activities• Balance Sheet• Cash Flow Statement• Notes to the Accounts
File with the Charity Commission by 10 months of the financial year end and published on the Charity Commission register.
Understanding charity accounts - the basics
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Statement of Financial Activity (SOFA)
• Income and expenditure linked to activities
• Expenditure split between charitable activity,
governance costs and costs of generating funds
• Differentiates between general funds, restricted
funds and endowed funds
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Balance sheet
• A snapshot of how funds are held at the year end
• Shows long and short term assets and liabilities
• Importance of free reserves
Balance Sheet(s)
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What do you want from your annual report?
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Sharing good practice, avoiding bad
Group exercise• Look at the annual reports and
compare them• Which ones are the most effective
at explaining their impact?
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Improving your annual report
Vision and strategy Mission “what we want to achieve”
Problem and need What, scale, impact on those affected
Overview and activities
Outputs
Outcomes
Activities to achieve the goals
Numbers of people/demand
Change achieved
“Talking about results” by NPC
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What should a reserves policy contain?
• At a minimum:• reasons why reserves needed
• level or range of reserves needed
• action to achieve desired level
• arrangements for review
• SORP requires actual level of reserves in £ at year end
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What’s the risk?
Inco
me
Predictable
Unreliable
Flexible cost base
High committed costs
Adjust spend to fit income
Danger zoneRegularly monitor income
Use reserves
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Making the most of your messages
The 3 ‘C’s’• Consistency• Clarity• Conciseness
Tell the story of the numbers• NOT the story you wish they told• Funders, donors, collaborators,
potential employees etc notice in today’s competitive environment
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Consistency
In an ideal world:
• Written by one person• Proof read by another – not the
whole Board • Same tone throughout • Compliance with brand guidelines• Clear sign-off procedure agreed
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Clarity
In an ideal world:
• This is a key marketing tool – don’t waste the opportunity
• Use plain English – don’t try to use long words for the sake of it
• Try tables and graphs to get the point across in a different way
• Pictures can paint a thousand words
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Conciseness
In an ideal world:
• Determine what your key messages are – and stick to them
• Less is more – or your point will be lost (and the reader’s will to live)
• Did you meet the objectives set?• What are your objectives for the
next financial year?
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Tell the story of the numbers
• Sounds obvious – funders will compare past years and what you said you were aiming to do
• Why are the reserves the reserves?• What’s the rationale for any
designations?• What’s happening with the
restricted funds?• Can you show that you have
responded to emerging issues/risks?
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Tell the story of the numbers...contd
• Can you show increased efficiencies year on year?
• Has income increased following creative solutions?
• Try to be clear about central or administrative costs
Overall- are you a going concern worth investing in, working with
or working in.
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Organisations to help
www.thinknpc.orgwww.sroi-uk.orgwww.neweconomics.orgwww.ces-vol.org.ukwww.outcomesstar.org.ukwww.cfg.org.ukwww.charitycommission.gov.ukwww.sayervincent.co.uk