Financial Review
NCVS has a surplus for the year of £76,097, and if one adds the deficit on funds restricted to specific
charitable activities of £38,698, the surplus is £114,795. The budget for the year showed a
breakeven position and the Trustees would like to thank management for their efforts in controlling costs,
using volunteers and earning additional revenue. We are now reaching the lower end of our target of having
6 to 12 weeks of reserves. Total incoming resources, excluding community network activities, totalled £1,726,641
against £1,647,175 in the previous year.
Net assets amount to £1,906,806 of which £1,322,924 represents the property from which NCVS operates.
The cash position, net of borrowings, was £447,712 at 31 March 2007 as against £544,599 at the
previous year end. Of this some £204,622 is monies held for restricted funds or amounts held on behalf
of other organisations. NCVS's cash position fluctuates hugely during most months and the balance tends
to be high at the year end. NCVS continues to stress to funders and others the importance of paying in accordance
with contracts. With limited reserves, a substantial payroll and contractual commitments to pay other Voluntary
Sector organisations, we have to monitor cash flow tightly. NCVS is now a complex organisation with diverse
activities including acting as the Accountable Body for various income streams to the voluntary sector.
Your attention is drawn to note 14 to the financial statements, which refers to a situation where we had
previously believed that certain employees and past employees were in a defined contribution scheme whereas
it appears that scheme is a defined benefits scheme. NCVS has been notified of a potential liability for
£333,508. The pension provider has a plan to eliminate the deficit over time and NCVS has denied liability.
No provision has been made in these financial statements.
There have been no accounting policy changes since last year. The different funds of NCVS are explained in
note 9 to the financial statements.
Reserves Policy
NCVS needs reserves for three reasons:
- To cover short term requirements (for instance, where grant income is delayed, where up front amounts
of expenditure are required or where there are termination costs for a project).
- To enable NCVS to undertake projects without funding if necessary.
- To provide working capital.
The Trustees believe NCVS needs reserves of between 6 and 12 weeks expenditure. For this purpose reserves
are taken as unrestricted reserves excluding specifically allocated monies such as the Repairs Fund. On
this basis at 31 March 2007 NCVS had reserves of 8.5 weeks' expenditure (2006: 5.9 weeks).
The Trustees review the reserves position annually as part of the budget approval process and take appropriate
action to maintain reserves both then and where necessary during the course of the year.
Funders
NCVS is dependent on all its funders and could not help support the voluntary sector, and ultimately the
people of Nottingham, without them. The Trustees are extremely grateful to all funders but particularly
to Nottingham City Council for its continued investment in supporting key elements of NCVS core costs. Without
this long term support, we would find it impossible to lever in other funding (currently at the rate of
13:1) to deliver the breadth and quality of services to local groups and individuals.