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Better annual reports Caron Bradshaw, Gill Gibb and Kate Sayer

Getting your annual report right

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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-listing

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Page 1: Getting your annual report right

Better annual reports

Caron Bradshaw, Gill Gibb and Kate Sayer

Page 2: Getting your annual report right

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

Page 3: Getting your annual report right

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

Page 4: Getting your annual report right

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

Page 5: Getting your annual report right

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)

Page 6: Getting your annual report right

What do you want from your annual report?

Page 7: Getting your annual report right

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?

Page 8: Getting your annual report right

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

Page 9: Getting your annual report right

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

Page 10: Getting your annual report right

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

Page 11: Getting your annual report right

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

Page 12: Getting your annual report right

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

Page 13: Getting your annual report right

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

Page 14: Getting your annual report right

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?

Page 15: Getting your annual report right

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?

Page 16: Getting your annual report right

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.

Page 17: Getting your annual report right

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