## **South Lakes u3a Accounts** 

## **Financial Year End 2026 Financial Report** 

## **Financial Review** 

The charity has maintained its sound financial position on the foundation of the previous 2 financial year’s actions. Our more than adequate reserve provides some stability and sustainability helping us to mitigate risks including economic downturns, changes in funding and unplanned emergencies. Although there will be rising energy and other costs (mainly reflected in rent increases) in the next financial year, additional fundraising is not expected to be necessary. 

## **The South Lakes u3a Accounts** 

This year the surplus is £11,280.66. This is technically understated as £9,000 was transferred to reserves. To understand more about the accounting please note: - 

- In changing from accrual to cash basis, it is necessary to adjust for rental invoices not yet received but covering this financial year to avoid overstating the balance of payments. See the Provision for Rents list below that I have used in the accounts, being from invoices received after 31[st] March. This transition period will cease after this financial year. 

- The net impact of provision for rental is £4,619.14 (2025 £4,520.03). 

- Subscriptions are ahead of last year. 

- Group Income has managed to stay well ahead of Group Rents. 

- The rental increase was just under £1.7k, last year £5k. Due to inflation, particularly fuel costs, a return to a £5k increase cannot be ruled out. 

- The contents of the “bucket” categorisation of “Other” are listed below. 

- The current account balance at year end was £30,122,22 (2025 £23,147.43). As at 2/5/26 the balance was £26,450.76 (2025 £18,661.22). 

The accounts are in a healthy position and will be presented for acceptance at the AGM. 

## **Provision for rents** 

|Abbot Hall<br>Natland<br>Kendal URC<br>Table Tennis equipment<br>**Other**<br>Bike Workshop<br>Copyright<br>Xmas tree - Kendal Parish Church<br>Keyboard for Singing|£2,263.00<br>actual received 2/4/26<br>£1,621.13<br>actual received 1/4/26<br>£210.00<br>last paid March<br>£600.00<br>last paid March 25<br>£4,694.13<br>£200.00<br>£69.37<br>£30.00<br>£394.99<br>£694.36|
|---|---|





## **Reserves Policy** 

Surplus funds were transferred to reserves on 31[st] October. Reserves should be at a level to cover reasonable expenses, at say circa 50% this would be circa £24,500. As at the current financial year this means a “shortfall” of £2,500. 

The policy relating to reserves is to look at maintaining the balance between paying all lines of expenditure as they fall due and remaining solvent at the year end. By far the largest level of expenditure is Group Rents which this financial year is £31,736.21, say £32k (2025 £30k). With the healthy cashflow and current account balance of £30,122.22, at year end, (2025 £23,147.43) plus reserves of £22,000 (2025 £13,000) this major expense is easily covered. 

The Charities Commission recommend that reserves should be at least 3 month’s expenditure, central u3a finance between 6 and 12 months. Our reserves are £22,000 (2025 £13,000) which is an acceptable level. 

As reserves have been built up adequately (from £5k to £22k) over my time as Treasurer, care will need to be taken to ensure that the growth in reserves is brought down to a much lower level, recommendations having been given to committee regarding this. 

## **Appointment of Independent Examiner** 

Steve Parr has agreed to carry on the role and I would like to propose that he should external examiner for 2026/2027.