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Analysis and further thoughts
This supplementary information is to help interpret the accounts and also some of my own reflections.
Unrestricted money and reserves
How much have we got? £64,437, we have added an extra £3,682 to the reserves last year which is not that significant on income of £273,249
Sounds like quite a bit overall though? Not really, it would cover us for about 2.5 months if we lost any significant income streams and we also owe £244k loan we borrowed to do up the building.
How much would we like ideally? This does change from time to time but a rough rule of thumb is 6 months running costs which is ~£150k although to ensure more sustainability we should look to pay down the loan as soon as possible. Over the next 3-5 years if we can grow the reserves and reduce the loan through capital payments they might be at a similar level which would give us more financial stability.
Ultimately the reserves are to further the objectives of the charity which means striking a balance between spending money doing stuff now and saving money to ensure any blips don't stop you doing stuff in the long term. It is not to stockpile cash and do nothing with but on the other hand running out of money can be incredibly disruptive and we want to avoid that.
What are the key take away figures from the Independent Examination?
We had income of ~£273k which was ~£40k more than the year before
We now have ~£230k of value (balance sheet)
Of that ~£230k value, ~£64k is cash in the bank, £122k is the building value and ~£44k is project money
How much money did we get in and what did we spend it on?
So we know we got ~£40k more income than the previous year.
We had ~£50k more in grants this year, £14k more rental income and £13k more in Training income but no large donation like the previous year only £3,766 relating to gift aid from the previous years donation which is about what the overall profit was for the year
All the restricted income is within the 'charitable activities' section as the restrictions are usually by funders. 55% of the income was restricted which is higher than 44% in the previous year but this is merley a reflection of the grants like for like growth being significantly higher compared to the other unresricted streams growth. This is still much lower than a historical average well above 90% and we continue to work hard diversifying and growing non-grant income to become more sustainable in the long term.