2021-03-31-accounts

c navca local focus natlonal volce Annual Report 2020/21

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National Association for Voluntary and Community Action Annual report & financial statements Year ended 31 March 2021

Contents:

Legal and Administrative Details

Trustees’ Annual Report | Including Directors’ Report and Strategic Report

Auditor’s Report

Statement of Financial Activities | Including Income and Expenditure Account

25

Balance Sheet

Notes to the Financial Statements

26

28

‘‘ NAVCA has shown its ability to respond quickly and flexibly to support our members, who were meeting urgent Covid-19 needs in their local areas. NAVCA has listened, learned and acted for the benefit of communities and our members: as a leader and advocate for local VCS infrastructure; uniting and supporting our network of members ; and in championing the voice of ‘local’ as co-chair of the VCS Emergencies Partnership. This report shows the impact we have had in 2020-21, with a promise of more to come.

• Judy Robinson | NAVCA Chair

National Association for Voluntary and Community Action Legal and Administrative Details Year ended 31 March 2021

Legal and administrative details:

Legal status:

NATIONAL ASSOCIATION FOR VOLUNTARY AND COMMUNITY ACTION is a charity (No. 1001635) and a company limited by guarentee (No. 2575206)

Directors and trustees:

The directors of the charitable company (‘the charity’) are its trustees for the purpose of charity law and throughout the report they are collectively referred to as ‘the trustees’.

The trustees of the charity during the year can be seen in the table to the right.

National Association for Voluntary and Community Action (NAVCA) is a company limited by guarantee. It does not have any paid-up share capital.

In January 2020, the Board appointed Judy Robinson as Chair, with Julie Farrow and Richard Jackson as Vice Chairs. They continued to hold these positions during 2020/21.

	Roles/committee	Date elected/ re-elected/	Date stepped
Name:	membership:	appointed:	down:
Judy Robinson	Chair	18 Oct 2018
	Ofcers’ group
	Recruitment sub-group
Julie Farrow	Vice-chair	6 Dec 2019
	Ofcers’ group
	Chair HR committee
	Recruitment sub-group
Richard Jackson	Vice-chair	4 Dec 2020
	Ofcers’ group
	Recruitment sub-group
Brian Coghlan	Treasurer	18 Dec 2018
	Ofcers’ group
	Chair Finance committee
	Recruitment sub-group
Stephen Craker		6 Dec 2018
Kerrie Fletcher	Finance committee	6 Dec 2019
	Recruitment sub-group
Melanie Mills	HR committee	14 Jul 2016	4 Dec 2020
Alison Semmence	HR committee	4 Dec 2020
Michelle Warburton		4 Dec 2020
Angela White	HR committee	6 Dec 2019
(Carter) OBE	Recruitment sub-group

Legal and administrative details:

Chief Executive:

Company Secretary:

Jane Ide – left 10 November 2020 Brian Coghlan – from 30 December 2020

Jane Ide – left 10 November 2020 Maddy Desforges – from 16 March 2021

Principal and Registered Office:

Auditors:

The Workstation 15 Paternoster Row Sheffield S1 2BX

BHP LLP 2 Rutland Park Sheffield S10 2PD

Bankers:

Investment Managers:

Unity Trust Bank plc Nine Brindley Place Birmingham B1 2HB

Investec Wealth and Investment Beech House 61 Napier Street Sheffield S11 8HA

National Association for Voluntary and Community Action Legal and Administrative Details Year ended 31 March 2021

National Association for Voluntary and Community Action Chair’s Foreword Year ended 31 March 2021

Chair’s Foreword:

My foreword to the annual report last year had Covid-19 as a feature; this year it is the dominant theme.

During the last year NAVCA has shown its ability to respond quickly and flexibly to support members who themselves were meeting urgent COVID needs. The frequent NAVCA bulletins gave critical information such as new arrangements for organising volunteers; our work with the Voluntary and Community Sector Emergencies Partnership brought the local into the core of emergency planning and the setting up of the Local Infrastructure Network, often led by a NAVCA member, created connections and intelligence channels to the Government and others.

Most important, of course, was the extraordinary effort of voluntary and community organisations to help vulnerable people and communities, from food parcels to vaccine rollout. It was organised compassion at work and NAVCA is proud to have played its part.

Three particular lessons emerge from the year, noted in this report, and

I want to draw them out briefly.

First, voluntary sector infrastructure really is essential - not a ‘nice to have’ but a ‘vital to have’ in a democratic society. Governments, locally and nationally, have seen this directly. A local infrastructure organisation, knowing what’s what and who’s who locally, with a functioning network and communication system and which is trusted to be disinterested, puts the organised into organised compassion.

Second, place/the local/the neighbourhood is where volunteering and support to people actually happen. And not everywhere is the same. NAVCA’s network of local members is at the heart of our movement and national work precisely because place is so significant. Of course, national frameworks are necessary and having mechanisms for collaboration between national and local infrastructure is one of NAVCA’s key roles. This year progress was made and common understanding has grown.

Third, Covid-19 has underlined health and wider inequality. Covid-19 has disproportionately affected people from Black, Asian and minority Ethnic communities, disabled people and especially those with learning disabilities and older people in care homes. Tackling inequality has always been central to NAVCA’s thinking and we will be re-doubling our efforts to keep it at the front of our priorities.

Leadership is always essential and I want to thank our former Chief Executive Officer, Jane Ide, for all she did during the pandemic. We were fortunate to recruit an experienced and skilled successor in Maddy Desforges.

Thanks to NAVCA’s staff and trustees who all worked together so hard during the year. I want to pay tribute to this year’s retiring trustee, Melanie Mills, and thank her for her service. We have been pleased to work with a range of funders, partners and collaborators during the year.

This report shows that NAVCA has listened, learned and acted for the benefit of communities and its members. Staff and trustees are clear that these attributes are the right ones for the years to come when Covid-19 is a distant memory.

Judy Robinson Chair of Trustees

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

Our Funders:

In 2020/21, NAVCA was grateful to receive funding from the following organisations, which enabled us to contribute to the Covid-19 response and pursue our strategic objectives:

Big Society Capital

Supported by NHS England & NHS Improvement

NHS England and NHS Improvements

Sheffield City Council

Department for Digital, Culture, Media and Sport

Paul Hamlyn Foundation

The National Lottery Community Fund

Lloyds Bank Foundation

Power to Change Trust

The Tudor Trust

Acknowledgments:

Thank you to all of NAVCA’s members for allowing us to use their photographs both in the annual report and impact report.

Thank you to Charlotte Ware at Basingstoke Voluntary Action for supporting with the design of both our annual report and impact report.

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

Trustees’ Report:

The trustees, who are also directors for the purposes of company law, are pleased to present their report together with the financial statements of the charity for the year ended 31 March 2021.

The legal and administrative information set out on pages 5 and 6 forms part of this report.

The financial statements comply with current statutory requirements and the trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities FRS 102 (second edition, October 2019)” in preparing the annual report and financial statements of the charity..

Objectives and activities for public benefit:

The principal objects of the charity are “to promote any charitable purposes for the benefit of the public, in England, and, in particular, build the capacity of local support and development organisations and provide them with the necessary support, information and services to enable them to pursue or contribute to any charitable purpose.”

The trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit and are satisfied that the organisation’s strategic framework, which provides the template for all of its work, conforms to these requirements.

Governing Document:

NAVCA is a charitable company limited by guarantee, incorporated on 21 January 1991 and registered as a charity on 24 January 1991. The company is governed by its Memorandum and Articles of Association that were last amended on 6 December 2019. In the event of the company being wound up, members are required to contribute an amount not exceeding £5.

Vision, mission and aims:

NAVCA’s vision is for a society based on equality, fairness, active citizenship, strong communities and social action. We are the voice for local place at national level, providing leadership and support to our members. We exist to support a vibrant network of local infrastructure organisations across England, to help them grow in strength, confidence and impact and to increase their influence nationally.

Our mission is to strengthen and champion social action through effective local voluntary and community sector infrastructure. Our aims are that:

• every community in England benefits from a thriving local voluntary sector, strengthened through excellent local support and development;

• any person in England who wants to volunteer, start a charity or social enterprise or create a voluntary organisation has a place to go for good, local advice and support; and

• our members have clear, effective influence and engaged support amongst key stakeholders, locally and nationally.

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

Strategy and Organisational Delivery:

In December 2019, we launched our new five-year strategy, Excellence, Everywhere. Our three strategic objectives are:

• Assure the quality: We can demonstrate and champion the quality of local sector support and development as delivered by every member of NAVCA.

• Make the case and fill the gaps: The local VCSE in every part of England has access to the quality support and development services it needs, either through a NAVCA member, a non-member local infrastructure body or an effective alternative model of provision.

• Act as innovative infrastructure organisation: We have credibility and influence as the voice of local sector support and development, and provide the best possible support for our members, by being the best national infrastructure body we can be.

Our work in 2020/21 was planned around these strategic objectives. However, like other organisations, in spring 2020 we had to reassess our activities as the Covid-19 emergency unfolded. Our existing plans were put on hold, for the most part, as we concentrated on the emergency response. Over the course of the year, we reconfigured and re-wrote our plans several times in response to the pandemic. While our vision, mission and aims remain true, and have guided our response, the activities we have delivered to achieve our objectives have developed significantly over the course of the year.

Covid-19 Response:

From the outset it was clear that the response to Covid-19 across the country would involve the voluntary and community sector (VCS). By the start of April 2020, our members were already fully involved in the local response. They supported their local VCS and connected to public sector systems and structures, as well as providing direct operations, including recruiting and coordinating volunteers, delivering food parcels, collecting prescriptions and actions to combat isolation. They worked strategically with local authorities and local resilience forums (LRF) as well as with other public services, particularly as a key part of the local health structures.

Alongside our members, we adjusted our work to be a part of the Covid-19 response, operationally and strategically. Our response included: sector leadership and advocacy; member communications, support and co-ordination; and our role as Co-Chair of the VCS Emergencies Partnership.

Sector leadership and advocacy:

The Covid-19 response centred on communities and local place. The first place that people turned to for support was local; the local VCS was the ‘early warning system’, often being first to understand the type and level of needs as they emerged and then changed through the course of the pandemic. NAVCA’s role as the leader of a national network of local infrastructure organisations was to make sure the voice of local communities was heard and had influence nationally, as well as to build confidence and resilience in local leaders as they responded to the emergency. We gathered intelligence from members, and shared information in a clear form. We sought to underpin community response which was so important, rooted in trust and strong relationships. We know that strong local infrastructure was key to enabling local, often small, organisations to adapt their approach and absorb emerging demands arising directly from the pandemic.1

We led the collaboration between national VCS infrastructure bodies2, making sure the wider VCS response took account of local communities’ experiences and needs. By bringing together the local and national experience we highlighted the importance of work throughout the VCS more powerfully, gathering information about the level of demand and how it was changing, supporting the #EveryDayCounts campaign to highlight the role the sector was playing. The Department of Digital, Culture, Media and Sport (DCMS) and the Cabinet Office recognised the critical nature of the VCS response, as well as the intense pressure created by the collapse of fundraising and income generation, with a £750m package of support.

“Crucial to have voices speaking in places we can’t reach or saying the things we need amplified at national level. Thank you all @NAVCA”

NAVCA member CEO, 12 May 2020, Twitter

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

As the pandemic developed and the Government’s guidance changed, NAVCA connected members’ intelligence directly with the Government, seeking clarification on restrictions, and highlighting issues which arose. One issue we identified early on was that advice and guidance for communities and community organisations seemed to lag behind advice for other sectors such as hospitality. NAVCA used its insight and influence to work with the Ministry for Housing, Communities and Local Government (MHCLG) to secure further guidance on Covid-19 safe community facilities.

The restrictions on what volunteers could and couldn’t do were complex, so we provided information and insight to DCMS which was subsequently included in Government guidance on volunteering. We were involved in discussions with the Department for the Environment, Food and Rural Affairs (DEFRA) around food vulnerability and the role of local infrastructure and the wider VCS in food supply. This contributed to DEFRA’s building of a dedicated online platform to enable local authorities and a number of charities to directly refer individuals for access to emergency food parcels and prioritised food/supermarket delivery slots. We worked with the Department for Work and Pensions (DWP) on proposals for the Kickstart scheme to provide paid six-month work placements for young people, ensuring that officials had a deeper understanding of the VCS as a significant employer, and broadening the range of roles which could be eligible for Kickstart.

As well as distilling key messages for our members, NAVCA provided dedicated resource for a wider national campaign highlighting the breadth and importance of the VCS response: #NeverMoreNeeded. This was used by local and national infrastructure bodies and numerous charities, voluntary and community groups to highlight the impact the sector was having in our communities. The campaign was highlighted in Parliament, including Prime Minister’s Questions. We helped shape and deliver a later iteration for #RightNow, which led to a day of action across the VCS ahead of the Budget in February 2021.

Member communications, support and co-ordination :

Our members were facing significant demands to support and coordinate the VCS locally, as well as facing multiple demands to contribute to and influence the public sector response, working with local authorities and health services. NAVCA was a key source of information, advice and guidance which our members could pass on in turn – such as our well-

received decision tree on volunteering activity. As the shape of volunteering changed so quickly, this helped members be confident they were giving good advice and keeping people safe, while also facilitating a wider approach to volunteer activity.

Our breakfast bulletins for members brought together relevant information and resources from Government and specialist sector bodies early each weekday morning as a go-to place for information. We distilled and summarised complex and frequently changing advice and guidance from the Government and shared this regularly with our members – on a daily basis at the height of the pandemic. This increased our members’ confidence in the approach they were taking and the advice they were giving.

“Thanks for the daily Breakfast Bulletins, they’re incredibly useful and informative and a very pleasant start to another hectic day. I know I’ve said it before but as one of the newer members of the NAVCA family I’ve been blown away by everything you’re doing to support the sector and fight its corner at this incredibly difficult time - you’ve been truly amazing!”

NAVCA member CEO, 30 April 2020

We established regular briefing sessions to create space for us to come together with our members’ CEOs to share experiences, disseminate information, make connections and gather intelligence. This provided support and reassurance, and created the space for leaders to feel connected, and able in turn to support their local VCS.

1 see Daysun et al, The role of the Leeds Neighbourhood Networks during the COVID-19 - pandemic (Centre for Aging Better, 2020); Capacity through crisis: The Role and Contri bution of the VCSE Sector in Shefield During the COVID-19 Pandemic (PDF 435.63 KB) | Centre for Regional Economic and Social Research | Research | Sheffield Hallam University (shu.ac.uk)

2 NAVCA led alongside the Association for Chief Executives of Voluntary Organisations (ACEVO), the National Council for Voluntary Organisations (NCVO), Directory of Social Change (DSC), Charity Comms, the Association of Charitable Foundations (ACF), the Charity Finance Group (CFG), the Chartered Institute of Fundraising (CIoF), Charity Retail and UK Youth. This collaboration formed the heart of the collaboration which expanded to include over 40 national infrastructure bodies.

NAVCA Members and their networks made use of this decision-making chart - it was even used in Australia!

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

Voluntary and Community Sector Emergencies Partnership:

The VCS Emergencies Partnership played a key role to coordinate the emergency response; escalate needs which were unmet; harness collective skills and insight; and create solutions - its impact report sets out that story. NAVCA is Co-Chair of the Emergencies Partnership, alongside the British Red Cross, leading since its inception. Through the partnership during Covid-19 we connected local and national partners, sharing learning very quickly and putting in place systems and structures to support connections and partnerships. This enabled organisations to develop reliable routes to engage with each other and government locally and nationally. Working within the Emergencies Partnership, NAVCA brought together the skills, capacity and expertise of the local VCS and connected that with national players, something often missing historically.

To fund the capacity needed for local organisations to engage, we secured and distributed over £1m from the Government for the Local Infrastructure Network (LIN) involving 201 organisations.

“All of us are aware of how much you have been banging the drum for infrastructure and this is the first bit of high-level financial recognition of that and it’s a great achievement; thanks from me too.”

NAVCA member CEO, 25 June 2020

The LIN provided vital ‘eyes and ears’ on the ground to bring intelligence to the Emergencies Partnership and the Government. One early role was to match need that could not be met locally with spare capacity elsewhere in the system, be that around food, access to medicines, health, social isolation or digital connectivity. For example, there was a need for additional volunteers to deliver food parcels to front-line organisations in Bristol over six weeks during summer 2020. This was reported through the LIN. Volunteers were found through the Emergencies Partnership, helping maintain emergency food supplies for charities and projects working with vulnerable people.

NAVCA set up monthly calls with the LIN where organisations connected with each other, shared learning and information on issues including mass testing, equality and diversity, the impact of Covid-19 on specific communities such as LGBT+ and West Yorkshire. This increased overall understanding of the needs and responses across the country, and ways to work effectively.

NAVCA co-ordinated weekly meetings of the Emergencies

Partnership’s multi-agency cells, each with representatives from local infrastructure as well regional and national leads, centred on place. We also created a space to establish new relationships and understanding: between small, local and big, national voluntary sector partners, opening up new opportunities for collaborative response through engagement with LRFs, local authorities and health services. Through the Emergencies Partnership we commissioned local infrastructure organisations to research how they and the local VCS work in specific areas to support communities and produce a suite of recommendations on: equity, diversity and inclusion (EDI); food distribution; digital inclusivity; and volunteering. As we move out of emergency response and in to the ‘new normal’, these newfound or reinvigorated relationships will be essential to understanding the new landscape of need, and how we respond to it.

Moving from pandemic to endemic:

As the vaccination programme rolls out, Covid-19 is moving from a pandemic crisis to an endemic part of everyday life. We used NAVCA’s skills, knowledge, insight, connections and resources to support and work with our members and for our country in crisis. We need to move now to embed those ways of working, and create long lasting partnerships between local and national organisations, to be ready for, respond better to, and learn from, future emergencies.

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

Our outcomes, against our strategic objectives:

Assure the quality:

We demonstrate and champion the quality of local sector support and development as delivered by every member of NAVCA.

Outcomes during 2020/21:

Our members delivered high-quality support, development and representation to the VCS in the communities they serve, and in turn we provided general and one-to-one support for our members. Alongside our communications and online briefing sessions, available to all members, NAVCA provided specific advice and support to individual organisations.

At times our members’ CEOs turn to us for support and the pandemic exacerbated the pressures they were facing. We provided one-to-one support on issues including dealing with bullying, improving governance, and needing a confidential sounding board. In one instance, we provided a space for clarifying thinking on organisational direction: should the organisation make use of the furlough scheme, cease all activity and secure its existence for the longer term, or carry on delivering its services (and more) in Covid-19 response, but put itself at risk of closure within six months?

We used this and insight gathered from members more widely as evidence for DCMS about the risks facing local infrastructure and the wider sector. Our role to bring organisations together, share best practice and learning, respond to queries, share information and support mattered more than ever during the pandemic. It helped our members continue to provide trusted, high-quality support to the VCS in their local areas in turn.

“Thank you for taking the fight to the top. Thank you for keeping us informed. Thank you for bringing us together.”

NAVCA member CEO, 12 May 2020, Twitter

NAVCA member CEOs use our Chief Officers’ Information Network (COIN), a private space created to discuss live issues, as a source of

mutual support and sharing of views, information and resources. This was an invaluable source of connection, with over 2500 messages posted during 2020/21. During the first lockdown we also provided a daily ‘COIN Compressed’ summary of issues raised, to help our member CEOs absorb and access the information available and make the most of the peer support.

Part of our work to assure the quality is to celebrate excellence, and the NAVCA Awards, held in December 2020, showcased the high quality, high impact work of our members. The theme of the awards was #HeartOfOurCommunity, following on from our successful campaign earlier in 2020 which publicised the role of local infrastructure in the pandemic response.

Support Staffs received the #HeartOfTheCommunity 2020 award. They responded to the pandemic by putting their communities front and centre. Like other infrastructure their operating principle was “not to cut across our communities and step in and do the work that they were best placed to do, but to support them, to wrap our support around them.” Slough CVS won the Partnership Award for their work coordinating cross sector in Slough, bringing together the local VCS, Slough Borough Council and the business sector under the #OneSlough banner. They provided a well-coordinated response with excellent use of communications, including through the #OneSlough app.

We continue to work with emerging and at-risk organisations, to support them to develop, secure funding, or merge. We also worked with one London borough, advising on their work to commission high quality local infrastructure support for the borough.

Securing diverse funding streams continues to be key to a quality offer. In partnership with Big Society Capital and our members, NAVCA coproduced a self-assessment tool to enable local infrastructure bodies to evaluate their (and their local sector’s) level of engagement and knowledge in social investment. We also worked in partnership with Power to Change Trust, delivered a report outlining our member’s current level of knowledge and engagement in cooperative community business models and community share offers. This helped us understand our members better, and will also inform PTC’s future strategy.

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

Make the case and fill the gaps:

The local VCSE in every part of England has access to the quality support and development services it needs, either through a NAVCA member, a non-member infrastructure body, or an effective alternative model of provision.

Outcomes during 2020/21:

We welcomed 15 new organisations into NAVCA during 2020/21. We now have members in Blackpool, Glossop, West Lancashire, Worcester and other areas previously not covered by the NAVCA membership. Voluntary Action Doncaster, a newly-established local infrastructure organisation in a metropolitan area with no existing local infrastructure provision, has also joined our membership. We have strengthened our relationships with other national infrastructure bodies including ACRE and Locality, and this has helped amplify our voice in the remaining areas where we do not currently have any member organisations. As new members came into NAVCA membership, we continued to assess their activities as part of our work on assuring the quality of local infrastructure provision.

As the health and social system goes through a period of significant reorganisation, we have been a strong voice for local VCS infrastructure, making sure that the intelligence and expertise of local communities has influence. We are members of the National Health Service England (NHSE) VCS Health & Wellbeing Alliance, and other key forums including the NHS Volunteer Responder Advisory Board and the Public Health Steering Group. We have taken opportunities to highlight the crucial role local infrastructure plays, supported local infrastructure organisations to connect to health and social care systems, and the health and social care system to connect with local VCS more easily.

Working with members we produced research and policy documents, including on health inclusion in rural and coastal communities, social prescribing and community-centred approaches to public health. We delivered a series of engagement events in partnership with NHSE’s Transformation Team to enable NAVCA members to directly influence proposals for the future development of integrated health architecture. We reported on the prevalence and experience of local infrastructure in integrated care leadership, to influence future planning of NHSE’s VCSE Leadership Programme.

We share the work of our members through our weekly e-newsletter, LINX, which reaches over 1700 subscribers. On social media our Twitter following has grown by 10% over 2020/21, to over 17000.

We secured national media coverage for our members’ role in the Covid-19 response. With our input, sector media also covered the work of our members around their role in enabling mass volunteering and in the response more generally.4

Act as an innovative national infrastructure organisation:

We have credibility and influence as the national voice of local infrastructure.

Outcomes during 2020/21:

Through our Covid-19 response we found ways to innovate during the year. One success was moving member events online, meaning more people could take part. We live-streamed the NAVCA Awards, making it possible for many more people to attend and celebrate the impact of local infrastructure.

We developed new virtual networks for our members, bringing people from local infrastructure together to learn from each other, share good practice and provide support during a time of high pressure across the VCS. The Barking Owl is our virtual network for people from our member organisations who work in communications. Through the Barking Owl, we have shared learning on a range of issues including video, animation and working with your local media. We helped around 20 members secure free access to a graphic design platform, saving them £100 pa each.

3 https://www.theguardian.com/society/2020/apr/13/a-million-volunteer-to-helpnhs-and-others-during-covid-19-lockdown, 13 April 2020; https://www.telegraph. co.uk/news/2020/04/10/volunteers-itching-give-time-told-care-service-needs-ever/, 11 April 2020.

4 https://www.thirdsector.co.uk/250000-volunteered-help-community-organisations-says-navca/volunteering/article/1680286, 15 April 2020; https://www.thirdsector.co.uk/front-line-local-charities-dealing-regional-lockdowns/management/ article/1693835, 9 September 2020.

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

We were subject to a cyberattack in December 2020 which tested our response plans. In line with those plans we reported a potential data breach to the Information Commissioner’s Office and a serious incident to the Charity Commission. We also acted swiftly to contact everyone whose data has been potentially exposed. Working with our insurers we tested our security and implemented additional measures, as well as delivering refresher training on cybersecurity and data protection to every member of our staff. The ICO and Charity Commission confirmed they were content with our response and that trustees had dealt with the matter appropriately and responsibly.

We are committed to becoming an anti-racist organisation, and know we need to build more trust and support with Black, Asian and other Ethnic communities. We are addressing this within our own organisation, to be confident our own actions and operations are demonstrably antiracist; and work closely with our members to be actively anti-racist. We committed to the Eight Principles to Address the Diversity Defcit in Charity Leadership in June 2020. In December 2020, our annual conference focused on inclusion, diversity and equality, specifically around steps to take to be actively anti-racist. Our speakers challenged us as leaders to make more progress:

acutely conscious of the impact of the pandemic on mental and physical health, family and caring responsibilities, and workload, and have continued to support flexible working.

Our CEO Jane Ide moved on to a new role on 10 November 2020 and our new CEO Maddy Desforges joined us on 16 March 2021.

Our work as an organisation relies on our Trustee Board. Our trustees have invested their time and energy to NAVCA during the pandemic, especially during the period between CEOs.

Finance:

As a result of the pandemic and the shift in our focus, we needed to revise our budget several times during 2020/21. Income and expenditure both shifted significantly from our initial plans for the year.

• Ranjana Bell MBE, D&E Consultant - How leaders can create safe spaces for courageous conversations

• Rachel Cooling, Diversity Lead, VCS Emergencies Partnership – Working with diverse communities during the pandemic

• Steph Edusei, CEO of St Oswald’s Hospice - Why I’m fed up with people being polite about diversity

• Kunle Olulode MBE, Director of Voice4Change - The Home Truths report and delivering real diversity

This work continues in 2021-22, through an anti-racist group, bringing together staff, trustees and members to identify and take action.

People:

In what has been a difficult year, we have supported our members of staff and worked with them to protect their wellbeing. We have been

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

Looking ahead - 2021/22:

If 2020/21 was the “pandemic year”, 2021/22 feels like it will be a transition year, for the country as a whole, for our members and particularly for NAVCA. We and our members are continuing to understand the impact of Covid-19 on day-to-day living and community action, as we adapt to living with Covid-19 as an endemic virus. With a new CEO in post, we are re-shaping how we respond to and shape that new environment. We are putting our values into action and working to become an anti-racist organisation and an anti-racist network. We are undertaking a number of projects and picking up on previous plans which had been put in abeyance. We continue to work towards our three strategic objectives as set out below.

Assure the quality:

• We will develop our member offer, to show the value that NAVCA brings to our members.

• We will work with and learn from our members as our network of organisations strengthens its anti-racist behaviours and activities.

• We will review and improve our approach to quality through a new suite of quality marks our members can use to assure funders, strategic partners and other stakeholders about their work.

• Internally, we will procure and implement a CRM system, giving us ready access to current and accurate information about our members from which to develop effective services and support, speak with credibility and influence policymakers.

• We will continue to work on a project around safeguarding which will increase understanding of how to keep people safe across our membership and the wider VCS.

Make the case and fill the gaps:

• By organising our thinking around key themes (including poverty, health, local government, volunteering) we will develop our credibility as a thoughtful, informed and influential local infrastructure network.

• We will demonstrate what ‘good’ local infrastructure looks like, & the positive impact on community health and wealth, resilience & readiness.

• We will work to identify areas where there is little or no effective local infrastructure provision and work with members, the local VCS, system partners and the wider community to understand how sector support and development needs can be met.

• Our research will provide us with rich quantitative and qualitative data to support our engagement with policy-makers and decision-takers.

Act as an innovative national infrastructure organisation:

• We will develop NAVCA as an actively anti-racist organisation.

• We will continue to work with a range of partners and take opportunities to collaborate when this aligns with our strategic objectives and the needs of our members – or where, as in our work against racism, it is simply ‘the right thing to do.’

People:

• We will ensure our members of staff are engaged and supported, providing good quality HR systems and providing dedicated time for every member of staff to use for their continued professional development.

• We will actively work with all our members of staff to ensure they understand and remain alert to live issues such as data security and the risks of cyberattack.

• We will regularly review our policies and procedures to ensure they are inclusive and promote diversity.

• We will hold a space where our members of staff can discuss and challenge racism and other forms of exclusion, and we will enable our members of staff to be their authentic selves.

• We will ensure our trustees are diverse and bring a breadth of perspectives.

Finances:

• We will develop our business model to improve our long-term financial sustainability.

• We will regularly review our policies and procedures, and our team’s understanding of these, to minimise our risk of being affected by fraud or human error.

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

Our Trustee Board:

NAVCA is managed by a Trustee Board comprising up to 13 trustees. Nine must be elected by NAVCA members, and a further four are appointed by the trustees themselves. Trustees are appointed for a three-year term, and can serve no more than six consecutive years as a trustee. The chair is appointed by trustees, and again must serve no more than six consecutive years.

The Board is served by a small number of working groups, each chaired by a trustee, which meet between three and five times per year. These are responsible for scrutinising specific areas of work, undertaking tasks delegated to them by the Board, and advising the Board on policy and strategy. The Board is also served by a small group of officers who take a lead role to support the executive team. In 2020/21, the officers were Judy Robinson (chair), Richard Jackson and Julie Farrow (vice chairs), and Brian Coghlan (treasurer). The HR Committee, chaired by Julie Farrow, was heavily involved in improvements to our HR policies and procedures.

The Finance Committee, chaired by Brian Coghlan, ensures appropriate scrutiny of NAVCA’s financial reporting and decision making, on behalf of the Board and in line with the NAVCA Scheme of Delegation. In addition, a recruitment sub-group led by the chair oversaw the recruitment of the new CEO.

New trustees are provided with induction, ongoing support and development to help them fulfil their role. NAVCA holds regular strategy/away sessions to provide trustees and members of staff with opportunities to meet and develop the organisation’s direction. Trustees are encouraged to attend appropriate training courses and conferences.

Details of trustees who have served during the year are set out on page 5.

All trustees give their time freely and no trustee was paid during the year. Details of trustee expenses and related party transactions are disclosed in note 10 of the accounts.

Trustees are required to disclose all relevant interests and register them with the company secretary and, in accordance with the organisation’s Memorandum and Articles, withdraw from decisions where a conflict of interest arises.

Internal control and risk management:

The trustees examine the major risks faced by the charity, in relation to external factors and relationships, its governance and management, its internal operations and its business. The management of risk is reviewed by the senior management team and the Trustee Board.

The principal risks and their mitigations are:

• Governance –sufficient breadth and depth of experience among trustees to ensure the capacity and insight is brought to bear to successfully oversee and steer the organisation. The Board has reviewed its trustees, and is taking action to identify and address gaps in its composition. It will continue to review how it functions to make sure it brings in a breadth of perspectives.

• Ensuring the quality of local infrastructure, to enable NAVCA and its members to make the case for its impact effectively. Work is underway to review our approach to quality and standards, and to embed this fully with our work with members. We will use the opportunity to think about how we support development, and engage widely with stakeholders.

• A funding environment dominated by short-term opportunities for NAVCA and our members means a lack of long-term financial stability. We will continue to make the case for the importance of infrastructure, including commissioning research, collating and disseminating information about the network’s impact during Covid-19.

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

The trustees keep the systems of internal financial control under review. Systems have been designed to provide reasonable, but not absolute, assurance against material mis-statement or loss. They include:

• a strategic plan and an annual budget approved by the trustees;

• regular consideration by the trustees of financial results, variance from budgets and performance against the non-financial annual plan;

• clear delegation of authority and separation of duties.

The internal financial controls conform to guidelines issued by the Charity Commission.

Arrangements for setting pay and remuneration of key management personnel:

The setting of pay and remuneration for SMT members of staff is reserved to the Board in NAVCA’s scheme of delegation, with salaries approved annually as part of the budget setting process. No member of staff is paid more than £60,000 per annum.

Head of Programmes Business Manager Development Head of Policy and Communications Communications and External Affairs Manager

Our staffing structure:

As at 31 March 2021, our organisation structure is as demonstrated on the diagram to the right.

Fundraising standard information:

NAVCA does not carry out significant fundraising activities from the public. The vast majority of funds come from grants, contracts and commercial income including membership fees.

Reserves policy:

NAVCA’s reserves policy remains based upon retaining sufficient funds to fully meet all our liabilities, should the organisation be faced with closure, and also providing for three months operating costs. The reserve level for 2020/21 was again set at around £250k, in keeping with our organisational objectives and development aspirations. This included the securing of appropriate new additional revenue streams to support our ongoing working capital requirements.

Head of Partnerships Chief Executive Membership Manager Finance Manager Finance Officer Executive Office Manager

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

These plans were, as in line with many organisations, established ahead of the onset of the operational and financial insecurities that Covid-19 would bring. Consequently, both the amount and nature of our reserves were kept under active review whilst we secured new Covid-19 related grant support.

The calculated level of free reserves at 31 March 2021 was £353,719 comprising total unrestricted funds of £503,579 (Note 18) adjusted for total pension deficit cost of £121,025, adding back the pension provision of £35,846, redundancy costs of £11,445, closure costs of £29,675 and provision for fall in value of investment portfolio of £23,562.

Investment powers and policy

Under its Memorandum and Articles of Association, the charity has the power to make any investment that the trustees see fit. At the end of 2020/21 the amount the charity had invested stood at a market value of £235,000. Pleasingly, as seen in the main accounts, we benefitted from a revaluation increase on the prior year due to recovery in the overall financial markets.

The remainder of the organisation’s funds are held in deposit accounts, with funds being moved, when appropriate, between accounts to maximise the interest earned. Bank interest receivable during the year amounted to £132.22.

Surplus 2020/21

The surplus for the year is £206,704 after deferring a total of £247,000 into 2021/22. The deferral comprises £167,000 grant from The National Lottery Community Funds which covers April 2020- October 2021, and £80,000 of smaller funds which are to be spent on specific work to deliver strategic core objectives during 2021/22.5

We were fortunate to secure a number of unrestricted grants from funders to support our work in response to the pandemic, recognising the value of local infrastructure, the support we provide to our members across the country, and the work we have been doing at national level. Spend against these grants did not fall neatly into one financial year, and the funds were most needed in 2021/22, as the impact of the pandemic lasted longer than anyone anticipated. We are pleased that funders have supported us to carry forward funds across the financial year to enable funds to be used when they are most

needed. As a result, we have ended 2020/21 with a positive outturn and our balance sheet surplus at 31 March 2021 includes these designated funds.

Going concern

The financial statements have been prepared on a going concern basis. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

The Covid-19 pandemic has had, and will continue to have, a significant impact on the charity’s finances. In part this is mitigated, as grants received during 2020/21 have been carried forward to the time they were needed. We are reviewing measures taken to combat the impact of Covid-19, and are developing our strategy and approach to income generation. In the context of an uncertain environment trustees consider that the activity, income and reserves held ensure the charity continues to operate as a going concern.

5 The sum of £80k comprises £30k Tudor Trust, £10k Lloyds Bank, £30k Paul Hamlyn, £10k Sheffield City Council.

National Association for Voluntary and Community Action Trustees’ Annual Report Including Directors’ Report and Strategic Report Year ended 31 March 2021

Trustees’ responsibilities statement

The trustees (who are also directors of NAVCA for the purposes of company law) are responsible for preparing the annual Trustees’ Report and the financial statements in accordance with applicable law and UK Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company, the incoming resources and application of resources, including the income and expenditure, of the charitable company for the period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and apply them consistently;

• observe the methods and principles in the Charities SORP 2019 (FRS 102);

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

As far as the trustees are aware:

• there is no relevant audit information of which the charitable company’s auditor is unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

On behalf of the Board

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

Judy Robinson Chair of Trustees

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

National Association for Voluntary and Community Action Auditor’s Report Year ended 31 March 2021

Independent Auditors’ Report to the members and trustees of National Association for Voluntary and Community Action

Opinion

We have audited the financial statements of NATIONAL ASSOCIATION FOR VOLUNTARY AND COMMUNITY ACTION for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the company balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31st March 2021 and of the entity’s incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

National Association for Voluntary and Community Action Auditor’s Report Year ended 31 March 2021

Other information

The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit:

•the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we

have not identified material misstatements in the directors’ report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

National Association for Voluntary and Community Action Auditor’s Report Year ended 31 March 2021

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

1. We gained an understanding of the legal and regulatory framework applicable to the entity and the sector in which it operates, and considered the risk of such regulations, including fraud. We designed audit procedures to respond to the risk.

2. We focused on laws and regulations relevant to the entity which could give rise to a material misstatement in the financial statements. Our testing included discussions with management, trustees, and those staff with direct responsivity for the compliance of laws and regulations. We also reviewed legal expenses.

3. We addressed the risk of management override of internal controls, including the testing of journals and review of the nominal

ledger. We evaluated whether there was evidence of bias by management or the trustees that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, and the charitable company’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Philip Allsop FCA (Senior Statutory Auditor) For and on behalf of BHP LLP

2 Rutland Park Sheffield S10 2PD 15th November 2021

BHP LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

2021

2020

National Association for Voluntary and Community Action Statement of Financial Activities (Including Income and Expenditure Account) Year ended 31 March 2021

		20	21			2020	National Association for Voluntary and Community Action
		Unrestricted	Restricted	Endowment			Statement of Financial Activities
Name:	Note:	Funds £	Funds £	Funds £	Total £	Total £	(Including Income and
							Expenditure Account)
Income and endowments							Year ended 31 March 2021
from:
Charitable activities	3	253,944	1,280,730	-	1,534,674	397,778
Investments	4	5,825	-	-	5,825	7,625
							Statement
Total income and endowments		259,769	1,280,730	-	1,540,499	405,403	of Financial
							Activities
Expenditure on: Raising funds Charitable activities Total expenditure	5 6	(1,118) (148,125) (149,243)	- (1,217,422) (1,217,422)	- - -	(1,118) (1,365,547) (1,366,665)	(1,746) (377,431) (379,177)	(Including Income and Expenditure Account)
Net gains/(losses) on	13	32,870	-	-	32,870	(14,256)
investments
Net income/(expenditure)		143,396	63,308	-	206,704	11,970
Transfer between funds	18	-	-	-	-	-
Other recognised gains/
losses
Re-measurement (loss)/	24	(2,180)	-	-	(2,180)	500
(gain on defned beneft
pension plan
Net movement in funds		141,216	63,308	-	204,524	12,470
							All income and expenditure derive from
Reconciliation of funds:							continuing activities.
Total funds brought forward		362,363	17,665	4,588	384,616	372,146	The statement of fnancial activities
							includes all gains and losses recognised
							during the year.
Total funds carried forward		503,579	80,973	4,588	589,140	384,616

National Association for Voluntary and Community Action Balance Sheet Year ended 31 March 2021

Note: 2021 £ 2020 £

Fixed assets
Tangible assets	12	-	-
Investments	13	235,624	207,032
		235,624	207,032
Current assets	14
Debtors		34,519	98,955
Cash at bank and in hand		653,398	172,300
		687,917	271,255
Creditors: amounts falling
due within one year	15	(298,555)	(51,198)
Net current assets		389,362	220,057
Total assets less		624,986	427,089
current liabilities
Net assets excluding		624,986	427,089
pension liability
Defned beneft	24	(35,846)	(42,473)
pension liability
Net assets		589,140	384,616
Charity Funds
Endowment funds	19	4,588	4,588
Restricted funds	18	80,973	17,665
Unrestricted funds
Designated funds	18	197,400	197,400
General Reserve	18	306,179	164,963
Total unrestricted funds		503,579	362,363
Total charity funds	20	589,140	384,616

Balance Sheet

The trustees acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of the financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved and authorised for issue by the Board on 22nd July 2021

Signed on behalf of the board of trustees.

Judy Robinson Chair

The notes on pages 25 to 43 form part of these financial statements. Company registration number: 02575206

National Association for Voluntary and Community Action Statement of Cash Flows Year ended 31 March 2021

Note: 2021 £ 2020 £
Cash fow for operating activities Net cash provided by operating activities 470,995 21 (70,851)	Statement of Cash Flows
Cash fow from investing activities Bank interest Dividends received Sale proceeds of sale of investments Purchase of investments 132 5,693 55,141 (50,863) 680 6,945 107,299 (22,440)
Net cash used in investing activities 10,103 92,484
Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 481,098 172,300 21,633 150,667
Cash and cash equivalents at the end of the year 653,398 22,23 172,300

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

1 | Summary of significant accounting policies:

(a) General information and basis of preparation

National Association for Voluntary and Community Action (NAVCA) is a charitable company in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £5 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities is being the national voice for local charity infrastructure concerned with voluntary and community action.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition, October 2019), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each

designated fund are set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund are set out in the notes to the financial statements.

Endowment funds represent those assets, which must be held permanently by the charity, principally cash at bank and in hand. Income arising on the endowment funds can be used as instructed, to assist the staff of CVS to take part in community work seminars, conferences and other training opportunities in the UK or in Europe. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.

(c) Income recognition

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

The charity receives government grants in respect of restricted

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

funding for delivery of services. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

(e) Support costs allocation

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings:

• Costs of raising funds includes investment management fees;

• Expenditure on charitable activities includes costs of activities undertaken to further the purposes of the charity; and

• Other expenditure represents those items not falling into the categories above.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative and payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings, they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Other overheads have been allocated on a time allocation basis.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. The analysis of these costs is included in note 7.

(f) Tangible fixed assets

Tangible fixed assets costing more than £1,000 are capitalised and included at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

IT equipment 3 years straight line Office furniture and fittings 5 years straight line

(g) Investments

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs.

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

(h) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

(i) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The charity operated a defined benefit pension scheme for the benefit of its employees. A liability for the charity’s obligations under the plan is recognised net of plan assets. The net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date.

(j) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(k) Going concern

The financial statements have been prepared on a going concern basis, as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

2020

	Unrestricted	Restricted	Endowment
Name:	Funds £	Funds £	Funds £	Total £
Income and endowments
from:
Charitable activities	191,053	206,725	-	397,778
Investments	7,625	-	-	7,625
Total income and	198,678	206,725	-	405,403
endowments
Expenditure on:
Raising funds	(1,746)	-	-	(1,746)
Charitable activities	(170,706)	(206,725)	-	(377,431)
Total expenditure	(172,452)	(206,725)	-	(379,177)
Net gains/(losses) on	(14,256)	-	-	(14,256)
investments
Net expenditure	11,970	-	-	11,970
Transfer between funds	20,995	20,995	-	-
Other recognised gains/
losses
Re-measurement (loss)/	500	-	-	500
(gain on defned beneft
pension plan
Net movement in funds	33,465	(20,995)	-	12,470
Reconciliation of funds:
Total funds brought forward	328,898	38,660	4,588	372,146
Total funds carried forward	362,363	17,665	4,588	384,616

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

2 | Statement of financial activities 2020

	Unrestricted	Restricted
	Funds £	Funds £	2021 £	2020 £
Membership income	48,876	-	48,876	43,735
Grant and Project income	133,000	1,280,730	1,413,730	261,725
Contract income	72,068	-	72,068	92,318
	253,944	1,280,730	1,534,674	397,778

Grant and project income

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

3 | Income from charitable activities

Restricted
HWA – Additional Projects	-	70,000
HWA (Health and Wellbeing Alliance)	60,000	60,000
DCMS -VCS Emergencies Partnership Secretariat	123,500	-
DCMS- VCS Emergencies Partnership grant distribution	1,056,017	-
VCSE - Data and Intelligence sharing	5,420	-
VCSE –‘Levelling Up’	1,500	-
DCMS – Safeguarding	33,343	38,125
Social Investment Support (Barrow Cadbury Grant)	950	38,600
	1,280,730	206,725
Unrestricted
Lloyds Bank Foundation for England and Wales – grant for core	-	25,000
expenditure
Barrow Cadbury Grant – grant for core expenditure	-	30,000
The National Lotteries Communities Fund – emergency	133,000	-
Covid-19 funding
	133,000	55,000
Total grants and project income	1,413,730	261,725
Membership fees and charitable purpose contracts	120,944	136,053
Total resources from charitable activities	1,534,674	397,778

4 | Income from investments

	2021 £	2020 £
Dividends	5,693	6,945
Interest	132	680
	5,825	7,625

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

4 | Income from investments

5 | Raising Funds

	2021 £	2020 £
Investment manager fees	1,118	1,746
	1,118	1,746

6 | Analysis of expenditure on charitable activities

	Activities	Activities
	undertaken	undertaken
	directly £	by members £	Support costs	2021 £	2020 £
Member Support	103,506	-	55,015	158,521	188,581
Grant and Project Expenses	216,658	-	5,406	222,064	112,343
Grants distributed	-	971,158		971,158	-
Contract Expenses	12,637	-	1,166	13,804	76,507
	332,802	971,158	61,587	1,365,547	377,431

5 | Raising funds

6 | Analysis of expenditure on charitable activities

Grants distributed are made up of grants of £3,000 to Local Infrastructure Organisations and £9,500 to Local Liaison Leads plus one payment of £21,658 to the National Liaison Lead.

7 | Support costs

Support costs totalling £61,586 (2020: £93,091) have been allocated across the activities of the charity on the following basis:

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

Basis of

		Basis of
Governance Strategic Premises Operations Information Finance Professional	(note 8) technology	Time spent & expenditure Expenditure Expenditure Expenditure Expenditure Expenditure Expenditure allocation £	22,749 6,314 8,548 6,441 12,880 937 3,718 2021 £	31,222 16,864 7,989 14,398 11,147 4,564 6,907 2020 £
			61,587	93,091

7 | Support costs

8 | Governance costs

8 | Governance costs

|8 | Governance costs||| |---|---|---| ||2021 £|2020 £| |Preparation of fnancial statements|1,650|3,850| |and independent examiner’s fee||| |Audit fee|6,500|-| |Trustee board expenses|935|7,072| |Support costs|13,664|20,300| ||22,749|31,222|

9 | Net income for the year

9 | Net income for the year

Net income is stated after charging:

|Net income is stated after charging:
9 | Net income for the year||| |---|---|---| ||2021 £|2020 £| |Depreciation of tangible fxed assets|-|-| |Operating lease rentals|355|355|

10 | Trustees’ and key management personnel remuneration and expenses

The trustees neither received nor waived any remuneration during the year (2020: £nil). The reimbursement of trustees’ expenses was as follows:

	2021	2020
	Number	Number	2021 £	2020 £
Travel and subsistence	2	11	935	4,870

11 | Staff costs and employee benefits

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

10 | Trustees’ and key management personnel remuneration and expenses

The average monthly number of employees and full time equivalent (FTE) during the year was as follows:

year was as follows:
	2021			2020
	Number	2021	FTE	Number	2020	FTE
Charitable activities	8		7	6		5

The total staff costs and employees’ benefits was as follows:

11 | Staff costs and employee benefits

	2021 £	2020 £
Wages and salaries	280,719	204,972
Social security	24,647	7,478
Other pension costs	22,493	18,125
Recruitment costs	9,837	3,501
	337,696	234,076

No employee received remuneration amounting to more than £60,000 in either year.

The trustees consider that the key management personnel comprised of the Chief Executive Officers. The total amount of employee benefits received by key management personnel is £39,548 (2020: £58,716).

|12 | Tangible fxed assets
Total £
Ofce
furniture
and fttings
£
IT equipment
£|National Association for Voluntary and Community Action
Notes to Financial Statements
Year ended 31 March 2021| |---|---| |Cost or valuation:
At 1 April 2020
Additions
Disposals
101,996
-
-
106,818
-
-
208,814
-
-|12 | Tangible fxed
assets| |At 31 March 2021
101,996
106,818
208,814|| |Depreciation:
At 1 April 2020
Charge for the year
101,996
-
106,818
-
208,814
-|| |At 31 March 2021
101,996
106,818
208,814|| |Net book value:
At 31 March 2021
-
-
-|| |At 31 March 2020
-
-
-|| |||

13 | Fixed asset investments

Listed

	Listed
	investments £	Total £
Cost or valuation
At 1 April 2020	207,032	207,032
Additions	50,863	50,863
Disposals - proceeds	(55,141)	(55,141)
Gain on disposals	5,688	5,688
Revaluation	27,182	27,182
At 31 March 2021	235,624	235,624
Carrying amount:
At 31 March 2021	235,624	235,624
At 31 March 2020	207,032	207,032

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

13 | Fixed asset investments

The historic cost of investments at 31 March 2021 was £207,923 (2020: £206,513). Investments at fair value compromise:

	2021 £
UK fxed interest Overseas fxed interest	32,367 48,800
UK Equities	36,896
European Equities	9,269
North American Equities	27,668
Japanese Equities	4,011
Far East & Australian Equities	9,187
International Equities	5,515
Emerging Economies	4,950
Property	16,926
Alternate assets	40,035
	235,624

The fair value of listed investments is determined by reference to the quoted price for identical assets in an active market at the balance sheet date.

No individual security held accounts for more than 5% of the portfolio by market value.

14 | Debtors

|14 | Debtors||| |---|---|---| ||2021 £|2020 £| |Trade debtors|32,788|66,690| |Prepayments and accrued income|1,731|32,265| ||34,519|98,955|

15 | Creditors: amounts falling due within one year

	2021 £	2020 £
Trade creditors	21,884	10,399
Other tax and social security	11,904	9,502
Accruals and deferred income	264,767	31,297
	298,555	51,198

16 | Leases

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

14 | Debtors

15 | Creditors: amounts falling due within one

year

16 | Leases

a) Operating leases - lessee

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2021 £	2021 £	2020 £
Not later than one year		89	355
Later than one and not later than fve years Later than fve years		- -	443 -
		89	798

17 | Deferred income

£

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

----- Start of picture text -----
||| |---|---| |At 1 April 2020|18,157| |Additions during the year|369,161| |Amounts released to income|(140,318)| |At 31 March 2021*|247,000|

----- End of picture text -----

17 | Deferred income

*Breakdown of Deferred income (where conditions set by the donor have not been met by March 2021).

----- Start of picture text -----
||| |---|---| |The National Lottery Community Fund|167,000| |Tudor Trust COVID Grant|30,000| |Paul Hamlyn Foundation COVID Grant|30,000| |Sheffield City Council Business Support Relief|10,000| |Lloyds Bank Foundation for England and Wales|10,000|

----- End of picture text -----

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

18 | Fund reconciliation

Unrestricted funds

|18 | Fund reconciliation
||||||| |---|---|---|---|---|---|---| |Unrestricted funds||||||Balance at| |Balance at 1|||||Gains /|31 March| |April|2020 £|Income £|Expenditure £|Transfers £|(losses) £|2021 £| |Unrestricted|164,963|259,769|(149,243)|-|30,690|306,179| |Designated Funds:||||||| |Underwriting fund|150,000|-|-|-|-|150,000| |Development and redundancy|35,500|-|-|11,900|-|47,400| |Emergency funding – Covid 19|11,900|-|-|(11,900)|-|0| ||362,363|259,769|(149,243)|-|30,690|503,579| |Unrestricted funds - prior year||||||Balance at| |Balance at 1|||||Gains /|31 March| |April|2019 £|Income £|Expenditure £|Transfers £|(losses) £|2020 £| |Unrestricted|156,612|198,678|(172,452)|(4,119)|(13,756)|164,963| |Designated Funds:||||||| |Underwriting fund|150,000|-|-|-|-|150,000| |Development and redundancy|22,286|-|-|13,214|-|35,500| |Emergency funding-Covid-19|-|-|-|11,900|-|11,900| ||328,898|198,678|(172,452)|20,995|(13,756)|362,363|

18 | Fund reconciliation

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

Designated funds

The unrestricted funds of the charity include the following designated funds, which have been set aside out of unrestricted funds by the Trustee Board for specific purposes

Underwriting fund

Designation to support future budgets with predicted deficits.

Development and Redundancy

Funds for redundancy and associated costs and for development from reserves. This has been reviewed and updated as part of our annual process to reflect our latest analysis of costs and redundancy liabilities in the event of closure.

Emergency funding - Covid-19

Funds from the emergency grant funding received in 2019/20 from Lloyds Bank Foundation and Barrow Cadbury. It was decided to transfer these funds to the Development and Redundancy fund to allow for possible redundancies due to the uncertainty of the economic recovery following the Covid pandemic.

18 | Fund reconciliation - Continued Restricted funds

Restricted funds
	Balance at 1	Movement in resources			Balance at 31
	April 2020 £	Incoming £	Outgoing £	Transfers £	March 2021 £
HWA – (Health and Wellbeing	-	60,000	(60,000)	-	-
Alliance)
DCMS VCS Emergencies	-	123,500	(123,500)	-	-
Partnership Secretariat
DCMS- VCS Emergencies	-	1,056,017	(1,026,052)	-	29,965
Partnership grant distribution
VCSE- Data and Intelligence	-	5,420	(5,420)	-	-
sharing
VCSE –‘levelling up’	-	1,500	(1,500)	-	-
Tender Support Project	4,049	-	-	-	4,049
Public Law Project	13,616	-	-	-	13,616
Social Investment Support	-	950	(950)	-	-
DCMS – Safeguarding	-	33,343	-	-	33,343
	17,665	1,280,730	(1,217,422)	-	80,973

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

18 | Fund reconciliation

Restricted funds - prior year

	Balance at 1	Movement in resources	Movement in resources		Balance at 31
	April 2019 £	Incoming £	Outgoing £	Transfers £	March 2020 £
HWA – Additional Projects	-	70,000	(70,000)	-	-
HWA – (Health and Wellbeing	-	60,000	(60,000)	-	-
Alliance)
Member support and	13,052	-	-	(13,052)	-
development fund
SFC	5,480	-	-	(5,480)	-
Campaigning and advocacy
Tender Support Project	2,463	-	-	(2,463)	-
Public Law Project	4,049	-	-	-	4,049
Social Investment Support	13,616	-	-	-	13,616
DCMS- Safeguarding	-	38,600	(38,600)	-	-
	-	38,125	(38,125)	-	-
	38,660	206,725	(206,725)	(20,995)	17,665

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

Health & Wellbeing Alliance (HWA)

NAVCA is a member of the VCSE Health & Wellbeing Alliance. The HWA is a partnership between the voluntary sector and the health and care system (as represented by NHS England, Department of Health & Social Care, and Public Health England) to provide a voice and improve health and wellbeing for all communities.

Tender Support Project

This was a project to provide support to increase organisations’ ability to win contracts to deliver public services.

Public Law Project

NCVO was the lead partner on this Big Lottery funded project. This was to work with NCVO on development of a legacy for the project.

Social Investment Support

This is a project funded by Big Society Capital and the Connect Fund to raise awareness and expertise in social investment among NAVCA members and, through them, the local voluntary sector in England.

DCMS - Safeguarding

NAVCA is a member of the Safer Social Partnership (along with NCVO, Acre, Children England and others) which won funding from the National Lottery Community Fund to develop safeguarding resources for the voluntary sector in England under phase 1 of the Safeguarding Training Fund.

HWA Priority Project ‘VCSE data and intelligence sharing’

NAVCA received a grant to work collaboratively with other partners in a project which aims to increase the use of data and intelligence held by the voluntary sector to enable better service planning and therefore better services to citizens, which seeks to redress inequalities in public sector delivery.

HWA Priority Project ‘Exploring the role of the VCSE sector and communities in ‘levelling up’

NAVCA received this grant to work collaboratively with other partners in a project which aims to explore the role of communities and the VCSE sector in levelling up with a focus on employment at place level, to influence future policy and practice.

DCMS - VCS Emergencies Partnership grant distribution

NAVCA worked with the British Red Cross to deliver the programme ‘VCS Emergencies Partnership co-ordination of the voluntary sector’s Covid-19 response’ which is funded by the Secretary of State for Digital, Culture, Media and Sport (DCMS). NAVCA co-ordinated the delivery of the emergency response to Covid-19 with a goal of improving well-being and reducing vulnerabilities of people affected by the pandemic. This involved the distribution of grants to relevant organisations for this purpose.

DCMS - VCS Emergencies Partnership Secretariat

NAVCA worked with the British Red Cross on the delivery of the above programme and received this grant to facilitate the programme by bringing in additional staff to manage the project.

19 Endowment fund

19 | Endowment fund

The Sir John Wrigley Bequest was made in 1978 to the National Council for Social Services and subsequently devolved to NAVCA. The income from the bequest is being used as instructed, to assist the staff of CVS to take part in community work seminars, conferences and other training opportunities in the UK or in Europe.

20 | Analysis of net assets between funds

	Unrestricted	Restricted	Endowment
	funds £	funds £	funds £	Total £
Investments	235,624	-	-	235,624
Cash and current investments	599,712	80,973	4,588	685,273ؘ
Other current assets / liabilities	(295,911)	-	-	(295,911)
Pensions provision	(35,846)	-	-	(35,846)
	503,579	80,973	4,588	589,140

Analysis of net assets between funds – prior year

	Unrestricted	Restricted	Endowment
	funds £	funds £	funds £	Total £
Investments	207,032	-	-	207,032
Cash and current investments	150,047	17,665	4,588	172,300
Other current assets / liabilities	47,757	-	-	47,757
Pensions provision	(42,473)	-	-	(42,473)
	362,363	17,665	4,588	384,616

21 | Reconciliation of net movement in funds to net cash flow from operating activities

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

20 | Analysis of net assets between funds

21 | Reconciliation of net movement in funds to net cash flow from operating activities

	2021 £	2020 £
Net income for the year (as per Statement of Financial Activities)	204,524	12,470
Adjustment for:
Bank interest	(132)	(680)
Dividends received	(5,693)	(6,945)
Gain in disposal of investments	(5,688)	(14,020)
Remeasurement loss/(gain) on defned beneft plan	2,180	(500)
Revaluation of investments	(27,182)	28,276
Decrease/(Increase) in debtors	64,436	(74,766)
Increase/(Decrease) in creditors	247,357	(6,135)
Decrease in beneft pension liability	(8,807)	(8,551)
Net cash provided by operating activities	470,995	(70,851)

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

22 | Analysis of cash and cash equivalents

|22 | Analysis of cash and cash|equivalents|| |---|---|---| ||2021 £|2020 £| |Cash in hand|653,398|172,300| |Total cash and cash equivalents|653,398|172,300|

22 | Analysis of cash and cash equivalents

23 | Analysis of changes in net debt

	At 1 April		At 31 March
	2020 £	Cash fows	2021 £
Cash in hand	172,300	481,098	653,398

23 | Analysis of changes in net debt

24 | Pensions and other post-retirement benefits

The company participates in a multi-employer scheme, which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004, which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a ‘last-man standing arrangement’. Therefore, the company is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

24 | Pensions and other postretirement benefits

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed a deficit of £31.6m (2017 £131.5m). To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2019 to 31 January 2025: £11,243,000 per annum

(payable monthly and increasing by 3% each on 1st April)

Unless a concession has been agreed with the Trustee, the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2017 to 30 September 2025: £12,945,440 per annum

(payable monthly and increasing by 3% each on 1st April)

From 1 April 2017 to 30 September 2028: £54,560 per annum

(payable monthly and increasing by 3% each on 1st April)

24 | Pensions and other post-retirement benefits

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 Scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement, the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present value of provision

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

24 | Pensions and other postretirement benefits

	31	March	31 March	31 March
		2021 £	2020 £	2019 £
Present value of provision		35,846	42,473	51,524

Reconciliation of opening and closing provisions

Period Ending 31	Period Ending 31	Period Ending 31
March 2021 £		March 2020 £
Provision at start of period	42,473	51,524
Unwinding of the discount factor	954	652
(interest expense)
Defcit contribution paid	(8,807)	(8,551)
Remeasurements - impact of any	1,226	(1,152)
change in assumptions
Remeasurements - amendments	-	-
to the contribution schedule
Provision at end of period	35,846	42,473

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

24 | Pensions and other post-retirement benefits

Income and expenditure Impact

Period Ending 31	Period Ending 31	Period Ending 31
March 2021 £		March 2020 £
Interest expense	954	652
Remeasurements – impact of any	1,226	(1,152)
change in assumptions
Remeasurements – amendments	-	-
to the contribution schedule

24 | Pensions and other postretirement benefits

Assumptions

Assumptions
	31	March 2021	31 March 2020	31 March 2019
	%	per annum	% per annum	% per annum
Rate of discount		0.66	2.53	1.39

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

25 | Related party transactions

A majority of NAVCA trustees are employees of NAVCA members. NAVCA sells services to and buys services from its members on the same terms as any other party.

During the year services were sold to members that were connected to trustees as follows. These figures excluded membership fees:

	Related			Description
Trustee	organisation	2021 £	2020 £	of goods
Melanie Mills	Big Society Capital	8040	-	Contract services

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

25 | Related party transactions

During the year the following monies (due to services rendered or grants) were paid to the following members that were connected to trustees as follows. The grants given were part of the DCMS VCS Emergencies Partnership grant distribution programme:

	Related			Description
Trustee	organisation	2021 £	2020 £	of goods
Steven Craker	Communities 1st ( St Albans	-	1,200	Training services
	– Hertsmere)
Carole Phillips	CEO VA North Lincs	-	285	Training services
Alison Semmence	CEO York CVS	-	1,111	Room hire etc
Alison Semmence	CEO York CVS	3,000	-	Grant given
Angela Carter	CEO Sefton CVS	-	727	Training services
Angela Carter	CEO Sefton CVS	9,500	-	Grant given
Richard Jackson	CEO VA Leeds	-	144	Catering costs
Richard Jaction	CEO VA Leeds	3,000	-	Grant given
Kerrie Fletcher	CEO S Derbys CVS	-	173	Training services
Kerrie Fletcher	CEO Community Action Derby	9,500		Grant given
Mike Wild	CEO MACC	-	149	Catering costs
Mike Wild	CEO MACC	3,000	-	Grant given
Julie Farrow	CEO Hunts Forum	-	47	Training services
Julie Farrow	CEO Hunts Forum	3,000	-	Grant given
Michelle Warburton	Manager Salford CVS	3,000	-	Grant given

26 | Financial instruments

The carrying amounts of the charity’s financial instruments are as follows:

National Association for Voluntary and Community Action Notes to Financial Statements Year ended 31 March 2021

Financial assets

	2021 £	2020 £
Measured at fair value through net	235,624	207,032
expenditure:
- Fixed asset listed investments (note 13)
	235,624	207,032
	235,624	207,032
Debt instruments measured at
amortised cost:
- Trade debtors (note 14)	32,788	66,690
- Other debtors (note 14)	1,731	32,265
	34,519	98,955
Measured at amortised cost
- Trade creditors (note 15)	21,884	10,399
- Other creditors (note 15)	308,546	40,799
	330,430	51,198

26 | Financial instruments

The income, expenses, net gains and net losses attributable the charity’s financial instruments are summarised as follows:

Income and expense

	2021 £	2020 £
Financial assets measured at fair value through net expenditure
Dividends received (note 4)	5,693	6,945
Gain on disposal of investments (note 13)	5,688	14,020
Net gains/(losses) on revaluation of investments (note 13)	27,182	(28,276)

Thank you to everyone who was a part of NAVCA’s team of staff during 2020/21.

Marcus Bowen Alex Boys Maddy Desforges Daniel Haslam Kat Heaton Jane Ide OBE Cheng Ee Kok Pauline Lee Clare Mills Anna Pashley Karen Spark Lucy Straker JuliAnne Tidy

National Association for Voluntary and Community Action

Annual review & financial statements Year ended 31 March 2021

Company Number: 2575206 Charity Number: 1001635