Finance Report 2021: Difference between revisions
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Please see the report at https://docs.google.com/document/d/1OuoFbSKfEQ-j7WJoLil5sBBiydRQ_MNaNinh9-FEoAw/edit?usp=sharing | Please see the full annual report Freegle at https://docs.google.com/document/d/1OuoFbSKfEQ-j7WJoLil5sBBiydRQ_MNaNinh9-FEoAw/edit?usp=sharing | ||
===FINANCE REPORT=== | |||
'''Review of the 2020/21 financial year ending 5th April 2021''' | |||
We had a total income of £93,830 (2020: £57,455). Donations were down due to group closures during COVID-19 lockdown periods, but we had a windfall of approx £18k in late 2020 when Freegle Ltd was featured on PayPal's Give at Checkout scheme. We also had a special appeal for donations in February and March 2021, which resulted in approx £12k of additional donations. With these two boosts, total donations were £73,278 (2020: £42,255), which included £7,200 (2020: £7,200) from our very generous anonymous sponsor. We caught up on Gift Aid reclaims, and received a total of £8,116. Our income from advertising decreased to £3,101 (2020: £14,488) , but we received £8,750 in grants from local Councils. The remaining income included £505 (2020: £577) from Give As You Live and £80 (2020: £135) from the sale of re-useable cups. | |||
Our expenditure was £66,819 (2020: £62,709). IT costs were £37,017 (2020: £35,063). We spent £19,038 (2020: £20,939) on media and local events, £9,251 (2020: £6,113) on work with local councils to promote Freegle, £60 on volunteer support (2020: £0), £0 (2020: £35) on fundraising, £0 (2020: £425) on public liability insurance (as we did not run any public events), and £1,453 (2020: £134) on administration. The increase in spend on administration was mainly due to the timing of payments for Independent Reporting Accountant's fees, and a move to accruals accounting. | |||
We paid £6,564 in Corporation Tax relating to advertising income for the previous two financial years, and the result for the year was a surplus for the year of £20,447 (2020: £5,254 deficit). We had a surplus brought forward from last year of £25,782 (2020: £31,036) so are left with reserves of £46,229 (2020: £25,782), of which none (2020: £1,239) are restricted for specific costs, and so £46,229 (2020: £24,543) are unrestricted. | |||
===AUDIT=== | |||
Request from the Board of Freegle: | |||
The Board would like the AGM to approve the dis-application for a full audit for the Freegle Ltd accounts 2020/21. This would be in line with previous procedure and is due to the level of expense for an external auditor and time required from the volunteer Treasurer for a full audit. | |||
Industrial and Provident Societies must have a full audit | |||
*if they are a charitable IPS | |||
*if they have a turnover of over £250,000 or assets in excess of £2,800,000. | |||
As we don't get near to these figures the expense and time for a full audit seems unnecessary when our transparency is confirmed by a qualified accountant’s Independent Examination. | |||
More information can be found in plain English here [[https://knowhow.ncvo.org.uk/organisation/financial-management/processes-procedures-and-controls/audit-and-independent-examination]] and in the legal explanatory note here: http://www.legislation.gov.uk/ukpga/2014/14/section/84 | |||
Revision as of 12:00, 9 October 2021
Please see the full annual report Freegle at https://docs.google.com/document/d/1OuoFbSKfEQ-j7WJoLil5sBBiydRQ_MNaNinh9-FEoAw/edit?usp=sharing
FINANCE REPORT
Review of the 2020/21 financial year ending 5th April 2021
We had a total income of £93,830 (2020: £57,455). Donations were down due to group closures during COVID-19 lockdown periods, but we had a windfall of approx £18k in late 2020 when Freegle Ltd was featured on PayPal's Give at Checkout scheme. We also had a special appeal for donations in February and March 2021, which resulted in approx £12k of additional donations. With these two boosts, total donations were £73,278 (2020: £42,255), which included £7,200 (2020: £7,200) from our very generous anonymous sponsor. We caught up on Gift Aid reclaims, and received a total of £8,116. Our income from advertising decreased to £3,101 (2020: £14,488) , but we received £8,750 in grants from local Councils. The remaining income included £505 (2020: £577) from Give As You Live and £80 (2020: £135) from the sale of re-useable cups.
Our expenditure was £66,819 (2020: £62,709). IT costs were £37,017 (2020: £35,063). We spent £19,038 (2020: £20,939) on media and local events, £9,251 (2020: £6,113) on work with local councils to promote Freegle, £60 on volunteer support (2020: £0), £0 (2020: £35) on fundraising, £0 (2020: £425) on public liability insurance (as we did not run any public events), and £1,453 (2020: £134) on administration. The increase in spend on administration was mainly due to the timing of payments for Independent Reporting Accountant's fees, and a move to accruals accounting.
We paid £6,564 in Corporation Tax relating to advertising income for the previous two financial years, and the result for the year was a surplus for the year of £20,447 (2020: £5,254 deficit). We had a surplus brought forward from last year of £25,782 (2020: £31,036) so are left with reserves of £46,229 (2020: £25,782), of which none (2020: £1,239) are restricted for specific costs, and so £46,229 (2020: £24,543) are unrestricted.
AUDIT
Request from the Board of Freegle:
The Board would like the AGM to approve the dis-application for a full audit for the Freegle Ltd accounts 2020/21. This would be in line with previous procedure and is due to the level of expense for an external auditor and time required from the volunteer Treasurer for a full audit.
Industrial and Provident Societies must have a full audit
- if they are a charitable IPS
- if they have a turnover of over £250,000 or assets in excess of £2,800,000.
As we don't get near to these figures the expense and time for a full audit seems unnecessary when our transparency is confirmed by a qualified accountant’s Independent Examination. More information can be found in plain English here [[1]] and in the legal explanatory note here: http://www.legislation.gov.uk/ukpga/2014/14/section/84
Links:
