MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
MALVERN U3A
TRUSTEES ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED
31 AUGUST 2024
Registered Charity number 1069591
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
| Contents | |
|---|---|
| Reference and Administrative Details | 3 |
| Trustees’ Report | 4-5 |
| Structure, Governance and Management | 5-6 |
| Report of the Independent Examiner | 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Notes to the Financial Statements | 10-14 |
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Reference and Administrative Details
| Registered Charity | 1069591 (registered in England) |
|---|---|
| Trustees | |
| Peter Corfield | Chair |
| Sue Dalley | Secretary |
| Roger Hunt | Treasurer |
| Chris Churchill | |
| Aidan Lawrence | |
| Wendy Mondy | |
| Helen O’Donnell | |
| David Street | |
| Patricia Evans | Appointed 29 November 2023 |
| Roy Atkins | Retired 29 November 2023 |
| Bill Culshaw | Retired 29 November 2023 |
| David Oliver | Retired 29 November 2023 |
| Richard Phillips | Retired 29 November 2023 |
| Anthony Swindell | Retired 29 November 2023 |
| Principal Address | 19a Alexandra Road, Malvern WR14 1HA |
| Independent Examiner | Louise Rouane, FCCA, |
| Pear Tree Cottage, Yarrington Road, Alfrick, | |
| WR6 5EX | |
| Website | www.malvernu3a.org.uk |
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Trustees’ Report
The Trustees are pleased to present their report and the financial statements for the year ended 31 August 2024.
The Financial Statements have been prepared in accordance with accounting policies set out in note 1 to the Financial Statements and comply with the Charity’s constitution, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (“SORP”), applicable to charities preparing their Financial Statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
Objectives and Activities
The Malvern u3a (“the Charity”) is a member of The Third Age Trust (charity number 288007) and represents its principles in Malvern, Worcestershire and the surrounding areas.
The charitable purpose of The Malvern u3a is the advancement of education, and in particular, the education of older people and those who are retired from full-time work, by all means including associated activities conducive to learning and personal development in Malvern and its surrounding locality.
Achievements and Performance
Membership, which fell significantly during the Covid 19 period, has stabilised at just over 1,700 members. There has been a significant increase on the 2023 membership numbers.
Our monthly speaker meetings at the Cube were very well attended, and we heard some very interesting contributions, covering a wide range of topics, giving surprising insights into historical events and locations.
In June the weather managed to hold for the afternoon when we were entertained in Priory Park by ukulele, recorder and wind groups, plus the support of a local jazz group.
In June we called a Special General Meeting to address an important issue. Over time, the reserves of Malvern u3a have grown significantly. On the advice of the Examiner of Accounts and keeping in mind the guidance provided by the Charities Commission for organisations of our size, the Trustees decided that firm action needed to be taken to prevent this growth from continuing, and to take steps to reduce the reserves to an appropriate level. The SGM agreed to reduce the annual subscription from £15 to £10 for 2024-25. This will restrict the growth, but further action is needed and at the SGM the Trustees explained that ways of putting these funds to constructive use in the community were being explored.
In September 2023 we held our Groups Fair Day in the Forum of Malvern Theatres when most of the group leaders were able to be there to tell members about their groups.
Our constitution limits how long Trustees may serve on our Management Committee, and this year we will sadly be losing the skills and enthusiasms of two of our Trustees. We thank them for all their hard work and commitment to Malvern u3a.
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Trustees’ Report (Cont.)
Financial Review
The Malvern u3a made a surplus for the year ended 31 August 2023 of £12,349.
The surplus principally reflects the increased receipt of venue fees from members attending face-to-face meetings at rented venues. This was higher than anticipated and reflects an increased confidence in members to gather together.
The Charity had reserves brought forward of £36,609 at 31 August 2023. Reserves at 31 August 2024 (excluding prepaid subscriptions for 2025) amount to £48,958.
Principal Funding Sources
On an ongoing basis, the Charity’s principal funding sources have and will continue to be subscription fees from members and a venue fee charged to members who attend meetings at paid third party venues.
Risks
The Charity is dependent on members volunteering to be Group Leaders and Trustees. It has been difficult to secure new Trustees. This is reflected in Trustees having to double-up roles and the inability to secure replacements for resigning Trustees. We continue to be actively engaged in strategies for trustee recruitment, such as shadowing and mentoring.
The Trustees will carefully monitor income and costs to determine whether the annual subscription fee (£15 for the year 2022-23) is appropriate. In light of the very substantial increase in reserves, a Special General Meeting was held to allow a reduction in the membership subscription from £15 to £10. Members were also consulted regarding the donation of a substantial amount to a local charity with appropriately aligned charitable objectives.
The Trustees will continue to seek new ways to engage with the membership.
Structure, Governance and Management
Governing Document
The Charity is an unincorporated members’ association and is a member of The Third Age Trust. It is registered as a charity (number 1069591). The association was established under a constitution which contains the objects and powers of the association.
Recruitment and Appointment of the Trustees
The Trustees of the Charity form a Management Committee. The Trustees of the Malvern U3A are required to manage the Charity in accordance with its constitution. The Trustees have a duty to ensure the Charity meets its objectives.
Under the requirements of the constitution, Trustees are elected from within the membership of the association at an Annual General Meeting (“AGM”) and hold office for one year, after which they must be re-elected at an AGM. New Trustees can be co-opted during the year by the Management Committee. Their term runs up to the next AGM when they need to be
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
elected if they wish to remain as a Trustee. Trustees are able to serve for five consecutive years, with the exception of the Chair who can only serve up to three years. Members are circulated with invitations to nominate Trustees prior to the AGM.
The Trustees are responsible for preparing the annual Report of the Management Committee and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare Financial Statements for each financial period, which give a true and fair view of the state of the affairs of the Charity and of its incoming resources and application of resources of the Charity for that period. In preparing those financial statements the Trustees are required to
Select suitable accounting policies and apply them consistently;
Observe the methods and principles of the Charities SORP;
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;
Prepare the Financial Statements on a going concern basis unless it is inappropriate to assume that the Charity will continue on that basis.
The Trustees are responsible for maintaining proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the Charity and to enable them to ensure that the Financial Statements comply with the Charities Act 2011 (Accounts and Reports) Regulations 2008 and the provisions of the constitution.
The Trustees are also responsible for safeguarding the assets of the Charity and, hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Independent Examiner
The independent examiner is approved by the membership at the Annual General Meeting.
The attached accounts for the year ended 31 August 2024 were approved by the Trustees on 3 October 2024 and signed on their behalf by:
……………………………….
P Corfield Chair
……………………………….
R Hunt Treasurer
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Report of the Independent Examiner
I report to the Trustees on my examination of the accounts of the Malvern u3a for the year ended 31 August 2024.
Responsibilities and Basis of Report
As the charity trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5) (b) of the Act.
Independent Examiner’s Statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
-
the accounts do not accord with the accounting records;
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed ……………………………….. Date ……………………………..
Louise Rouane FCCA
Pear Tree Cottage
Yarrington Road
Alfrick
Worcestershire WR6 5EX
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Statement of Financial Activities (Incorporating Income and Expenditure Account)
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Unrestricted Fund |
Restricted Fund |
Total | Total | ||
| Notes | £ | £ | £ | £ | |
| Incoming Resources | |||||
| Donations and Legacies | 2 | 27,910 | 0 | 0 | 26,020 |
| Charitable Activities | 2 | 47,519 | 11,738 | 0 | 49,821 |
| Investment Income | 517 | 284 | |||
| 0 | 0 | 0 | 0 | ||
| Resources Expended | |||||
| Raising Funds | 3 | 225 | 0 | 0 | 219 |
| Charitable Activities | 3 | 63,550 | 11,562 | 0 | 63,689 |
| 0 | 0 | 0 | 0 | ||
| Net Movement in Funds | 12,173 | 176 | 0 | 12,217 | |
| Total funds brought forward | 35,416 | 1,193 | 0 | 24,392 | |
| Total Funds carried forward | 0 | 0 | 0 | 36,609 |
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
| Balance Sheet | 2024 | 2023 | |||
|---|---|---|---|---|---|
| Unrestricted Fund |
Restricted Fund |
Total | Total | ||
| Notes | £ | £ | £ | £ | |
| Current Assets | |||||
| Fixed assets | 4 | 1027 | 0 | 169 | |
| Debtors & Prepayments | 7,577 | 0 | 5,217 | ||
| Cash at bank and in hand | 5 | 46,358 | 1,369 | 0 | 42,879 |
| 0 | 0 | 0 | 0 | ||
| Creditors - Amounts | |||||
| Falling due within 1 year |
6 | 7,373 | 0 | 11,656 | |
| Total Net Assets or Liabilities | 47,589 | 1,369 | 0 | 36,609 | |
| Funds of Charity | |||||
| Restricted income funds | 1,369 | 0 | 1,193 | ||
| Unrestricted income funds | 47,588 | 0 | 35,416 | ||
| Total Funds | 0 | 0 | 0 | 0 |
Approved by the trustees on 3 October 2024 and signed on their behalf by:
……………………………….
P Corfield Chair
……………………………….
R Hunt Treasurer
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Notes to the Financial Statements
1. Accounting Policies
Income
Basis of Preparation
These financial statements have been prepared on the basis of historical cost in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice, (SORP 2005) and with Accounting Standards. There has been no change in the accounting policies.
Fund Structure
Unrestricted income funds are general funds that are available for use at the Trustees’ discretion in furtherance of the objective of the Charity.
Income
All income is included in the Statement of Financial Activities when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy.
Incoming Resources and Related Expenditure
Where incoming resources have related expenditure the incoming resources and related expenditure are reported gross in the accounts.
Tax Reclaim on Donations and Gifts
Incoming resources from tax reclaims are included in the Statement of Financial Activities when they are received.
Investment Income
This is included in the accounts when receivable.
Expenditure and Liabilities
Liability Recognition
Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the Charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.
Deferred Income
Deferred income represents subscriptions received in respect of the following year.
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Notes to the Financial Statements (Cont.)
Assets
Tangible Fixed Assets
These are capitalised if they can be used for more than one year and cost at least £1000. This is an increase from the previous figure of £250 as agreed by the Trustees.
Prepayments
Prepayments arise when the Charity pays for certain expenses in advance, but the benefit is received in a later period.
Creditors and Provisions
Creditors are measured at settlement amounts less any trade discounts. A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.
| 2. Incoming Resources |
2024 | 2023 | |||
|---|---|---|---|---|---|
| Unrestricted Fund |
Restricted Fund |
Total | Total | ||
| £ | £ | £ | £ | ||
| Donations and Legacies | |||||
| Subscriptions | 25,088 | 0 | 0 | 22,868 | |
| Gift Aid recovered | 2,606 | 0 | 0 | 2,618 | |
| Matched Giving | 216 | 0 | 534 | ||
| 0 | 0 | 0 | 0 | ||
| Charitable Activities | |||||
| Group income | 46,245 | 0 | 0 | 41,156 | |
| Subgroup Income | 0 | 11,738 | 0 | 8,472 | |
| U3a News (TAM) | 606 | 0 | 0 | 192 | |
| Other | 668 | 0 | 0 | 1 | |
| 0 | 0 | 0 | 0 |
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Notes to the Financial Statements (Cont.)
| 3. Resources Expended |
2024 | 2023 | |||
|---|---|---|---|---|---|
| Unrestricted Fund |
Restricted Fund |
Total | Total | ||
| £ | £ | £ | £ | ||
| Room hire | 43,821 | 0 | 0 | 40,675 | |
| Sub-Group expenditure | 0 | 11,562 | 0 | 8,220 | |
| Capitation fees | 6,624 | 0 | 0 | 6,048 | |
| Speakers | 560 | 0 | 0 | 680 | |
| Directories | 3,232 | 0 | 0 | 2,418 | |
| u3a News | 897 | 0 | 0 | 0 | |
| Newsletters | 2,770 | 0 | 0 | 693 | |
| Printing & postage | 78 | 0 | 0 | 280 | |
| Transaction fees | 652 | 0 | 0 | 586 | |
| Repairs & equipment | 1,730 | 0 | 0 | 470 | |
| Depreciation) | 342 | 0 | 0 | 56 | |
| Independent Examiner | 360 | 0 | 0 | 360 | |
| Raising funds | 225 | 0 | 0 | 219 | |
| Groups Fair Day | 203 | 0 | 0 | 1,329 | |
| Other administration | 2,280 | 0 | 0 | 1,874 | |
| 0 | 0 | 0 | 0 |
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Notes to the Financial Statements (Cont.)
4. Tangible Fixed Assets
| 4. Tangible Fixed Assets |
|||
|---|---|---|---|
| Furniture & Equipment |
Total | ||
| £ | £ | ||
| Cost | |||
| At 31stAugust 2023 | 0 | 0 | |
| At 31stAugust 2024 | 1,500 | 0 | |
| Depreciation | |||
| At 31stAugust 2023 | 131 | 0 | |
| Charge for the year | 342 | 0 | |
| At 31stAugust 2024 | 473 | 0 | |
| Net Book Value | 0 | ||
| At 31stAugust 2023 | 169 | 0 | |
| At 31stAugust 2024 | 1,027 | 0 | |
| 5. Cash at Bank and in Hand |
|||
| 2024 | 2023 | ||
| £ | £ | ||
| Short term deposits | 35,398 | 26,881 | |
| Cash at bank and on hand | 0 | 0 | |
| Unrestricted | 10,960 | 14,477 | |
| Restricted | 1,369 | 0 1,521 | |
| Totals | 0 | 0 |
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MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Notes to the Financial Statements (Cont.)
6. Creditors: amounts falling due within 1 year
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Accruals and deferred income | 4,987 | 9,144 |
| Other creditors - restricted | 190 | 328 |
| Other creditors - unrestricted | 2,196 | 2,184 |
| Totals | 0 | 0 |
Deferred income represents subscriptions received in advance in respect of the following year.
Movement in deferred income account
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Balance at the start of the reporting period | 9,144 | 10,995 |
| Amounts added in current period | 4,987 | 9,144 |
| Amounts released to income from previous periods |
(9,144) | (10,995) |
| Balance at the end of the reporting period |
0 | 0 |
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Treasurer’s Report for the AGM (26[th] November 2024) in respect of the year ended 31[st] August 2024
The accounts for the year ended 31[st] August 2024 include the results of three of the Malvern u3a’s Groups (Geology, Military History and Travel). Each has their own bank account and largely operates on a break-even basis. The results of the Malvern u3a excluding the three Groups will be described as the Principal Group. The results including the 3 Groups will be referred to as Consolidated. This year the Military History group has ceased to need a bank account and it has been closed.
The Consolidated surplus for the year ended 31[st] August 2024 was £12,349. The 3 Groups contributed a surplus of £176. Their combined net cash reserves at 31[st] August 2024 was £1,369. The consolidated retained reserves were £48,957 at 31[st] August 2024.
The year ended 31[st] August 2024 can be characterised as one of continued growth post COVID-19. Our membership numbers were up on those for 2023 approaching the pre COVID-19 position.
Analysis of Financial Results
Our two main sources of income in the period were Subscriptions of £25,088 and Room Fees of £46,245. The latter is the fee of £2.00 collected from members attending paid venues. Room Fees increased significantly on their 2023 number (£41,156) due to the increase in membership (over 1,700 compared to the budget of 1,500). There also appears to be an increasing confidence of members to meet face to face.
The Principal Group claimed Gift Aid from HM Revenue & Customs. Although this hasn’t yet been received it is expected to be £2,606. The delay is a result of the change of Treasurer and the registration required with HMRC.
The principal expense in the period was Room Hire for Groups of £43,821. Our other main expense was the annual capitation fee paid to the Third Age Trust (i.e. u3a National) of £6,624. We also incurred total printing and production costs relating to the annual Group’s Directory and our printed Newsletter of £6,002. The remaining costs related to administering and running the Malvern u3a. These included the hiring of rooms for administrative purposes, monthly speakers’ fees, Zoom, Mailerlite and Microsoft subscriptions, printing and postage, a publicity advertisement in All About Malvern, our annual Copyright Licensing fee and the cost of the Independent Examiner.
At 31[st] August 2024, the Principal Group had made a surplus of £12,172 and had retained reserves of £47,588. The Trustees are aware that this level of reserves is more than needed and are seeking to reduce it over the coming years. As a result, at an SGM in August it was agreed to reduce the subscription to £10 for the 2024-25 year and also to investigate opportunities for donating to another charity(s).
Independent Examiner
We had a new independent examiner this year and it is proposed that we use her again.
Reserves
We have been advised by National u3a that we should formally consider the size of reserves suitable for our organisation and in accordance with Charity Commission guidance. It is recommended that a reserves policy should be prepared, endorsed by the AGM and reviewed annually. As a result, the trustees have prepared a reserves policy which aims at holdings of about £17K. The document was included with the AGM papers and will be offered for approval at this meeting.
Budget of the Principal Group for the Year Ended 31[st] August 2025
The Budget for the year ending 31[st] August 2025 has been prepared on the basis that our membership will be 1,750 members. In addition, the subscription rate of £10, agreed at the SGM, has been implemented. Subscriptions to date for 2025 have been slightly above those at the same time for 2024. This will reduce our subscriptions income by almost £9K.
Our main and most significant cost will remain room hire representing about 51% of our annual costs. 2024 saw a slight increase in room hire charges, some of which may be due to the increased number of members versus the budget. It is reasonable to assume that there will be a continuing increase in such charges.
Our next highest cost will be the Capitation Fee paid to the Third Age Trust which remains at £4 per member but is likely to increase in the future. We plan to continue producing a printed Groups Directory and hold a Groups Fair Day at a total cost of about £6K. We also intend to produce 2 printed newsletters costing about £6K.
Following agreement at the SGM, for the need to find ways of reducing our inappropriately large reserves, the trustees have begun investigating local charities which might benefit from financial support. The following 2 criteria were used: the benefiting charity should be local to our region or a branch of a national charity which services our region and their objectives should be consistent with, or complementary to, those of Malvern u3a.
As a result, we have had discussions with the local Community Action and Age UK staff and believe that there are opportunities to support them financially and collaborate in other ways. They both cover our local area and support people who fall within our constitutional demographic. We propose that we support Community Action in 2 ways; a one-off lump sum of £20K to support the purchase of a new minibus and a scheme to subsidise members' fares on Community Action transport. The latter has some administrative requirements which would need overcoming but would be approved on a year-on-year basis to ensure that it is both meeting our objectives and is affordable. It is estimated that such a scheme might cost £5K. We also propose that we work with Age UK to find ways of collaborating with them locally in schemes and projects which may or may not have a financial element.
Based on 1,750 members, the basic budget shows a deficit of just over £1.5K. Implementation of the budget commitments to Community Action above would lead to an annual deficit of just over £21.5K. This would result in our reserves reducing to approximately £21K, still well above our proposed target reserve of £17K and allowing for some financial support to Age UK if required.
Roger Hunt
Treasurer
MALVERN U3A
ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024
Report of the Independent Examiner
| report to the Trustees on my examination of the accounts of the Malvern u3a for the year ended 31 August 2024.
Responsibilities and Basis of Report
As the charity trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
| report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination | have followed the applicable Directions given by the Charity Commission under section 145(5) (b) of the Act.
Independent Examiner’s Statement
| have completed my examination. | confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in any material respect: ¢ accounting records were not kept in respect of the Charity as required by section 130 of the Act: or
- e the accounts do not accord with the accounting records;
| have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed UR bec
Date 2M [Dory
Louise Ruane FCCA
Pear Tree Cottage
Yarrington Road
Alfrick
Worcestershire WR6 5EX