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

1. Better annual reports
Caron Bradshaw, Gill Gibb and Kate Sayer

2. 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

3. 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

4. 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

5. 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)

6. What do you want from your annual
report?

7. 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?

8. 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

9. 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

10. What’s the risk?
Income
Predictable
Unreliable
Flexible cost
base
High committed
costs
Adjust spend
to fit income
Danger zoneRegularly
monitor
income
Use reserves

11. 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

12. 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

13. 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

14. 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?

15. 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?

16. 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.

17. Organisations to help
www.thinknpc.org
www.sroi-uk.org
www.neweconomics.org
www.ces-vol.org.uk
www.outcomesstar.org.uk
www.cfg.org.uk
www.charitycommission.gov.uk
www.sayervincent.co.uk