## **Trustees’ Annual Report for the period**
From 01.09.2020 To 31.08.2021
**Charity name:** Sandbach & District u3a
**Charity registration number:** 1105144
## **Objectives and Activities**
||SORP reference||
|---|---|---|
|Summary of the purposes of
the charity as set out in its
governing document|Para 1.17|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.|
|Summary of the main
activities in relation to those
purposes for the public
benefit, in particular, the
activities, projects or
services identified in the
accounts.|Para 1.17 and
1.19|Sandbach and District U3A is primarily set
up to provide opportunities for people who
are no longer in full-time employment to
further their education and/or improve their
skills and abilities in a wide range of
subjects and activities. This is achieved
mainly by the operation of subject or
activity groups which meet at regular
intervals and which are led by fellow
members on a voluntary basis.
Members benefit through their involvement
in educational, creative and physical
activities complemented by a healthy social
environment.|
|Statement confirming
whether the trustees have
had regard to the guidance
issued by the Charity
Commission on public
benefit|Para 1.18|All trustees have regard to the guidance
issued by the Charity Commission on
public benefit.|
**Additional information (optional)** You may choose to include further statements where relevant about:
||SORP reference||
|---|---|---|
|Policy on grant making|Para 1.38||
|Policy on social investment
including program related
investment|Para 1.38||
|Contribution made by
volunteers|||
Para 1.38 Other
## **Achievements and Performance**
||SORP reference||
|---|---|---|
|Summary of the main
achievements of the charity,
identifying the difference the
charity’s work has made to
the circumstances of its
beneficiaries and any wider
benefits to society as a
whole.|Para 1.20|The u3a is the largest membership
organisation in our district. It provides a
wide range of social, recreational and
educational opportunities for members.
These focus on a wide variety of activity
groups, including geology, walking football
and circus skills, that meet on a regular
basis. There are also less frequent events,
such as Members’ Mornings, visits to a
range of venues, short holidays, coffee
mornings and showcases.
A major benefit of u3a is enjoying new
interests and making friends in a relaxed
environment. In recent research, our
members reported amongst other things
feeling supported in new communities
when they moved house, learning new
skills, feeling valued and enjoying life.|
**Additional information (optional)** You may choose to include further statements where relevant about:
|Achievements against
objectives set|Para 1.41||
|---|---|---|
|Performance of fundraising
activities against objectives
set|Para 1.41||
|Investment performance
against objectives|Para 1.41||
|Other|||
## **Financial Review**
|**Financial Review**|||
|---|---|---|
|Review of the charity’s
financial position at the end
of the period|Para 1.21|The charity is in a healthy financial position,
with substantial reserves that are in line
with our policy on reserves.|
|Statement explaining the
policy for holding reserves
stating why they are held|Para 1.22|We aim to maintain financial reserves at
least half the total annual venue costs and
no more than half the total annual
expenditure to cover any sudden increases
in expenditure.
Funds above a basic working amount are
transferred temporarily from a current
account to a deposit account.|
|Amount of reserves held|Para 1.22|£27,965 on 31stAugust 2021|
|Reasons for holding zero
reserves|Para 1.22||
|Details of fund materially in
deficit|Para 1.24||
|Explanation of any
uncertainties about the
charity continuing as a going
concern|Para 1.23|There are no obvious uncertainties about
the charity continuing as a going concern.|
|**Additional information (optional)**
You may choose to include further statements|**Additional information (optional)**
You may choose to include further statements|where relevant about:|
|---|---|---|
|The charity’s principal
sources of funds (including
any fundraising)|Para 1.47|Our funds come from membership
subscriptions and group attendance fees.|
|Investment policy and
objectives including any
social investment policy
adopted|Para 1.46||
|A description of the principal
risks facing the charity|Para 1.46||
|Other|||
## **Structure, Governance and Management**
|Description of charity’s
trusts:|||
|---|---|---|
|Type of governing document
(trust deed, royal charter)|Para 1.25|Constitution|
|How is the charity
constituted?
(e.g unincorporated
association, CIO)|Para 1.25|Member of the Third Age Trust as an
Unincorporated Association|
|Trustee selection methods
including details of any
constitutional provisions e.g.
election to post or name of
any person or body entitled
to appoint one or more
trustees|Para 1.25|All trustees are elected annually as trustees
by members of the charity at an AGM, with
up to two additional trustyees co-opted by
elected trustees.|
## **Additional information (optional)** You may choose to include further statements where relevant about:
|Policies and procedures
adopted for the induction
and training of trustees|Para 1.51||
|---|---|---|
|The charity’s organisational
structure and any wider
network with which the
charity works|Para 1.51|The Sandbach and District University of the
Third Age (u3a) is part of a national and
international voluntary movement which is
supported by The Third Age Trust.|
|Relationship with any
related parties|Para 1.51||
|Other|||
## **Reference and Administrative details**
|Charity name|Sandbach and District u3a|
|---|---|
|Other name the charity uses|N/A|
|Registered charity number|1105144|
|Charity’s principal address|c/o Sandbach Library
The Commons
Sandbach
CW11 1FJ|
|||
## **Names of the charity trustees who manage the charity**
|1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20|**Trustee name**|**Office (if any)**|**Dates acted if not for whole**
**year **|**Name of person (or body) entitled**
**to appoint trustee (ifany)**|
|---|---|---|---|---|
||Stuart Naylor|Chair|||
||Linda Bilsborrow|Vice Chair|From 16.11.2020||
||Susan Jones|Secretary|From 16.11.2020||
||Richard Thorne|Treasurer|||
||Alan Casey||||
||Paula ReillyCooper||||
||Barrie Hacking||||
||Alice Holmes||||
||Don Rickards||Until 27.08.2021||
||Pamela Thomas||Until 10.09.2021||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
– Corporate trustees names of the directors at the date the report was approved
**Director name**
Name of trustees holding title to property belonging to the charity
**Trustee name Dates acted if not for whole year**
## **Funds held as custodian trustees on behalf of others**
Description of the assets held in this capacity Name and objects of the charity on whose behalf the assets are held and how this falls within the custodian charity’s objects Details of arrangements for safe custody and segregation of such assets from the charity’s own assets
## **Additional information (optional)**
## **Names and addresses of advisers (Optional information)**
|**Type of**|**Name**|**Address**|
|---|---|---|
|**adviser**|||
## **Name of chief executive or names of senior staff members (Optional information)**
## **Exemptions from disclosure**
Reason for non-disclosure of key personnel details
## **Other optional information**
## **Declarations**
**The trustees declare that they have approved the trustees’ report above.**
**Signed on behalf of the charity’s trustees**
|**Signature(s)**
**Full name(s)**
**Position (eg Secretary,**
**Chair, etc)**
**Date**|Stuart Naylor|Linda Bilsborrow|
|---|---|---|
||Stuart Naylor|Linda Bilsborrow|
||
Chair|Vice chair|
||22 November 2021||
||22 November 2021||
##
||lncon|e&ErpendihrcSrtatomoni||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||||NNNI||||||N19n0|||
|-1il|||ilote!|IainActivithc||Social
Activiths|Total||IainActiYitbs||Social
ActiYitis||Total|
||ncome|||t|L|e|f||t|f||f|t|
|1|,ternbeEhipSub6criDlhrls||A||11.390.0(||11.390.0(|||14,520-0(|||14,520.0(|
|2
3|\ctivityFees-Regular Groupo
c-tivityFees-Paid lnstructorGoups||B
I||5,884.
4,714.N||5,884.S
4,714.U|||23,775.W
1't,590.0{|||23,n5.*
11,590.0(|
||)utinqs, Trips&SochlAdivitbs|||||||||||||
|4||Receipbfrom mernbers||||||||||15,688.ffi|15,688.fi|
|5||Refundstomvenues||||||||||1,555.71|1,555.7'|
|b|inAid||||1,670.68||1,670.6{|||2,074.81|||2,074-81|
||)ther|lncome||||||||||||
|7
I||Miscellaneous
EankCunpensation & Intercst|||95.9t
2.27||||280.0[
451.0i|||||
||||||98.17|||98.1i|||731.42||731-01|
|9|ldal|lncome|||23,757.35|0.m|23,757.4|||5i||17,243.7'l|69,935.6{|
||Expenditurc|||||||||||||
||i'hird|AgeTrust||||||||||||
|10||lvternbeahip Subscription|A|3,965.50|||||5,127.50|||||
|11||QuarteilyMagazine|A|2,068.32|||||3A',t2.7(|||||
||||||6,033.82||6,033.8:|||8,540.20|||8,540.2(|
||legular&oum|||||||||||||
|12||Activities|B|638.7:|||||2,475.e|||||
|13||Venues|B|3,974.0{|||||26,499.5C|||||
||||||4,612.73||4,612.7i|||28,575.'lg|||28,575.1(|
||)aid lnsffuctorGoups|||||||||||||
|14||lnsfructors|B|3,100.fr|||||6,740.m|||||
|15||Venues|B|1,463.5(|||||3,n138|||||
||||||4,563.||4,563,5(|||10,511.38|||'t0,511.3t|
||)utinqs, Trire&Sock,Adivitils|||||||||||||
|16||Social TripCosb||||0.0(||||||8,386.3t||
|17||SocidTrip refunds to members||||0_0(||||||9,0r1.0(||
|||||||||0.0(|||||17,463.3(|
|18|lEquiDment||||0.m|||0.0(||807.94|||807.9|
|19|{dminisbation||||1,385.10||1,385.1(|||3,824.91||10.8{|3,8S5.71|
||)ther|||||||||||||
|m||SWISHwebsite||1,020.u|||||1,020.0(|||||
|21||WeLhostiru||1M.7t|||||128.8t|||||
|22||Paypddnryes||201.7t|||||227.41|||3.6t||
||||||1,366.5i||1.366.5i|||1,376.3i||3.6r|1,379.9i|
|24|l'otal|Expenditure|||17,961.6i|0.ff|17,9S1.6i|||53,635.9t||17,507.7(|71j43.74|
|25|wtlil@mettsrpenonure||c||5,795.6t|0.fr|5,795.6t|||944.1(||28t.0t|1,208.1a|
##
##
||Balance Sheet a
lncome & Expenditure Statement|s at 31stAug|ust2021||||
|---|---|---|---|---|---|---|
||||2020121|||201912A|
|tnF||Hoter|L|t|t|t|
||iiredAssets|A|||||
||SunentAss*||||||
||Debtors:||||||
|1|PrepaidVenue Expense||bt.3L||||
|2|Prepaid Group Expense||19.9!|||19.Se|
|3|Prepaid Social Expense||1.54i.6C||1,5476C||
|4|Prepaid PayPal Charges||142.8t||166.57||
|||||1.772.81||1,734le|
|A|Cashat Bank & lnHand|B,C||37,806.0:||?1OA?1E|
|6|IotalCurrent Assets|||39,578.9i||33,717.31|
||lurrentLiabilities FallingDueWithinOneYear||||||
||Sreditors:||||||
|7|Subscriotions areoaid tor2421i22|D|6,040.0c||9,4900i||
|I|Outinqs, Trips&ActivitiesPrepaidlor2021122|E|2,040.0c||'1.8400C||
|0|VenueFeesAccrued||3,179.0C||||
|10|Prepaid Requiar Groups||43.0C||||
|11|PrepardTutor Groups||312.0C||||
|12|SocialTrip Refund Cheques to be Banked||0.0c|||76.0t|
|13|Group Speaker Accruals||0.0c|||50,0c|
|14|Administration Expenses to bePaid||0.0c|||o, fi|
|'15|l'otal Current Liabilities|||1't,614.0C||11,548.07|
|to|lotalCurrent AssetsLessTotal Current Liabilities|||27.964.52||22.169.24|
||FundedBy||||||
||SeneralReErue:||||||
|17|Baiance BroughtFonvard|||22,169.24||23,377.39|
|18|NetlncomeI(Expenditure)inYear|||5,795.6€||1,208.15|
|19|Balance CaniedForward|||27,90/'.92||22,169.24|
##
**Sandbach and District U3A Charity |No. 1105144**
## **Independent Examination of Sandbach and District U3A Charity as required by The Charities Act 2011 for the Year 2020 - 2021**
## **Introduction**
For each set of annual accounts charity law requires an Independent Examiner’s report to comment on three specific things: the accounting records kept, whether the accounts agree with those records, and whether the format of the accounts is correct. The examiner is also required to comment on the accounts if they have other concerns about them.
Full guidance for the independent examination of charity accounts is given in the Charity Commissions document 'Independent examination of charity accounts: Directions and guidance for examiners (CC32)'. This independent examination therefore follows the guidance in CC32 where it is applicable to Sandbach U3A. Where Directions and text from the guidance are used in the report these are shown in Italics.
## _**Direction 1: Check whether the charity is eligible to have an independent examination.**_
1.1 The U3A income is made up of £23757.35 main activities and £0.00 social activities, [due to Covid lockdowns] giving a total income of £23757.35. This income is less than the £25,000 threshold requiring an independent examination or audit, and less than £250,000 maximum for income without formal audit. Although an Independent Examination may not therefore be strictly required this year this examination is being carried out to ensure good order and consistency of the financial records.
1.2 _Is an audit required for any other reason?_
The Inspection is required solely for the annual accounts and there is no other reason for an audit/inspection.
1.3 _Confirm that the charity is eligible for independent examination._ Notwithstanding the fact that this is a small charity the accounts have always been prepared on an accruals basis to give better financial control.
However, Charity Commission Appendix 5 of GUIDANCE - Independent examination of charity accounts: Directions and guidance for examiners (CC32) seems to indicate that accountancy qualifications are expected for accruals accounts.
_For accruals accounts the examiner should have a good understanding of accountancy principles, accounting standards and knowledge of the applicable SORP._
_Trustees who have had the charity’s accounts prepared on an accruals should select a person who is a member of one of the accountancy bodies listed in the 2011 Act as amended by the 2015 Order_ .
However the requirement for a member of one of the accountancy bodies is qualified by the CC's definitions of 'should' and 'must. _‘Must’ means something is a legal or regulatory_
1
## **Sandbach and District U3A Charity |No. 1105144**
_requirement or duty that the independent examiner must comply with or must follow in the conduct of their examination._
_‘Should’ means guidance that is good practice which the Commission expects the independent examiner to follow when carrying out their examination._
_‘Recommended’ or ‘May’ means a recommendation or practice that the Commission believes that independent examiners may find helpful in carrying out their independent examination. The examiner has discretion to exercise their own judgment and follow different practices where they consider that these are more suitable for the charity’s circumstances._
For the 2018 - 2019 Independent Inspection clarification was sought from the then Treasurer [Louise Adams] and Chairman of the U3A [Arnie Laing], who in turn sought clarification from Kevin Traynor Finance Manager at the U3A National Trust Office, who confirmed in an eMail to Arnie Laing of 1st October 2019 that 'Unless your income exceeds £250,000 you do not need to have a qualified accountant audit the accounts. Up to that level any independent examiner can review and sign off the accounts. These eMails were attached at Refs.1 and 2 to the 2018 - 2019 Inspection Report and are not repeated here.
1.4 _If the charity has one or more subsidiaries confirmed that group accounts are not required by law._ The charity has no subsidiaries.
## _**Direction 2: Check for any conflict of interest that prevents the examiner from carrying out their independent examination**_
2.1 _Confirm that there are no close personal relationships with the trustees that compromise independence._
I have no family , business or other close relationships with the trustees or day to day involvement with the administration of the charity. I provide no services to the charity other than this independent examination and as far as I am aware there are no circumstances that I judge would reasonably lead to the perception that as the examiner I am not independent.
2.2 _Consider whether sufficiently skilled to carry out the examination and, where required, confirmed membership of a listed body._
I am a Chartered Engineer, have a BSc (Hons) in Civil Engineering, and am a Member of the Institution of Civil Engineers and a former HM Inspector of Nuclear Installations. I have also been Treasurer of the Rotary Club of Sandbach Crosses for about ten years so have some experience of keeping club accounts.
## _**Direction 3: Record your independent examination**_
3.1 Direction 3 lists the records to be kept by the Independent Examiner. This report, it's attachments and references and retained working documents fulfil the requirements of Direction 3.
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**Sandbach and District U3A Charity |No. 1105144**
## _**Direction 4: Plan the independent examination.**_
_In order to plan the specific examination procedures appropriate to the circumstances of the charity, the examiner must review:_
- _the charity’s constitution_
- _the way the organisation is controlled and managed_
- _whether action has been taken on any previous recommendations for improvement_
- _the accounting records and systems_
- _the charity’s structure, its funds and how fund balances changed in the year_
- _the charity’s activities in the year and spending and the financial risks the charity faces_
4.1 The Guidance requires the examiner to have an understanding of what the charity is aiming to do and how it goes about doing it and that examiner should know about the structure and objectives of the charity and the activities undertaken. I have reviewed the Constitution of the Sandbach U3A, Ref.1, and can confirm that the current year activities as detailed in the accounts, fully meet the Constitution's objectives of 'The advancement of education and, and in particular, the education of older people and those who are retired from full time work by all means, including associated activities conductive to learning and personal development'.
The advent of the Covid 19 pandemic and the introduction by the Government of rules restricting social gatherings and social interaction has stopped or heavily curtailed or the majority of U3A activities since the nationwide lockdown in March 2020. However some of the learning and personal development groups were able to continue on line where this is practicable. As restrictions were lifted a few group in-person activities were resumed where possible within the regulations.
4.2. The examiner is required to vouch some transactions as a way of testing whether the accounting records have been kept to the required standard (see my response to Direction 5 below) and to check that one or more significant items shown in the accounts agree with the accounting records kept (see my response to Direction 6 below).
## **Direction 5: Check that accounting records are kept to the required standard.**
5. _1 The examiner must ensure that accounting records have been kept in compliance with the relevant legislative requirements The trustees are responsible for maintaining adequate accounting records to fulfil their legal obligations. The records of the charity must include those of any branch that is part of the charity. The examiner must review the accounting records to identify any material failure to maintain such records in accordance with the trustees’ legal duty._
5.2 The accounting records. I have reviewed a sample of the accounting records kept by the charity, References, 2, to 7, and can confirm that;
3
**Sandbach and District U3A Charity |No. 1105144**
- Account details are kept of all income/money received and payments/expenditure made.
- The dates, and the nature of income/money received or payments/expenditure made are recorded and a record of assets held is kept.
- Details of any assets and liabilities at the end of the reporting period are stated.
- The accounts are up to date at the time the accounts are prepared and are readily available.
- The accounts provide the basic information from which the charity’s financial position can be understood on any selected date and at the end of the reporting period (financial year).
5.3 For membership fee payments and groups' income and expenditure, the accounts are computerised and managed by the SWISH system ['Sandbach WebIntegrated Support & Help']
## 5.4 **Membership Income**
Membership fees are collected and recorded in three ways;
- Membership Secretary, with SWISH system transactions entered by and money paid into Natwest Bank branch by Membership Secretary, SWISH system transfer then created by Membership Secretary.
- Cash and cheques received in library with SWISH system transactions entered by, and money paid into Natwest Bank branch, by Membership Secretary, SWISH system transfer then created by Membership Secretary.
- On line card payments with system transactions created automatically [less PayPal fee]. Online bank transfer by Treasurer and system transfer created by Treasurer.
## 5.5 **Activity Groups Income;**
- Cash and cheques paid direct to Group Leaders [over a hundred groups] who access the group finance system to record attendances and payments received then pay into bank branch or by online transfer, accessing the finance system to record the payment.
- Each group has a bank paying in book with transaction serial numbers recognised by SWISH to allocate the payment to the relevant group.
5.6 Flow diagrams showing the processes for membership income and activity groups income are shown at Appendix 1.
5.7 Financial records including vouchers (invoices, receipts, claims and similar paperwork) have been kept by the charity to support the accounts (see Direction 6). The Trustees have ensured that the accounting records kept are a complete record by use of the SWISH system which can be interrogated to provide management reports.
4
**Sandbach and District U3A Charity |No. 1105144**
## 5.8 **Social Activity Income and Expenditure**
The social activity accounts are at present kept manually with details of income and expenditure kept on a separate Account Summary sheet for each individual event. A cheque is drawn in advance from the Treasurer for expenses such as coach hire and income from ticket sales is manually recorded and paid into the bank by the Social Secretary. Invoice and claim details, along with cheque payment details are input and recorded in the SWISH summary by the Treasurer.
Due to the continuation of the Covid pandemic and Government legislation to limit social contact there have been no U3A social activities this year. However the accounts show pre-payment for an outing to The Spectacular Classics at Bridgewater Hall rescheduled for November 2021.
5.9 Clarification on the treatment of the social income/expenditure within the accounts was sought in 2019 by the Trustees from the U3A National Office and the accounts are normally prepared in line with U3A National Office guidance.
5.9 **VAT**
For VAT purposes trading income does not involve membership fees, donations, and Gift Aid. Additionally the very much reduced level of U3A activity this year, due to the government Covid restrictions, has resulted in the overall turnover falling well below the VAT threshold of £85,000.
## 5.10 **Accounting Records Conclusions**
Whilst not intended to identify every omission or insignificant error in the keeping of accounting records this examination of a sample of the records has found no significant failure to maintain records in a manner consistent with the legal requirements. The accounting records are well-kept and well organised, capable of ready retrieval.
## **Direction 6: Check that the accounts are consistent with the accounting records** .
_The examiner must compare the accounts of the charity with the charity’s accounting records in sufficient detail to reasonably conclude that the accounts are not materially inconsistent with the accounting records._
6.1 I have compared the accounts with a sample of the underlying accounting records to establish whether the accounts have been prepared properly and show what income the charity has received and how it has spent its charitable funds. I have checked that the accounting records kept include source documents such as invoices, purchase orders, Gift Aid records etc.
6.2 I have compared a number of transactions , to check the accuracy of the transactions entered against the source record or documentary evidence. I have reviewed the accounting record for all payments for the months of November 2020 and August 2021 with additional spot checks in other months, see References 2 to 7, to compare;
- The invoices listed against the physical invoices received.
- Invoices, receipts or claims made against electronic payments made.
- Allocations to group expenditure of invoiced amounts.
5
**Sandbach and District U3A Charity |No. 1105144**
I have found no inaccuracies in the November records or other spot checks of invoices, payments or receipts, save for a missing invoice for Zoom which following a request to the Treasurer have been provided. Details of second Zoom account have also been provided covering transfer from monthly to annual payments. Also there is a missing invoice from Cheshire East for the years use of Sandbach park bowling greens for which the treasurer has made an accrual. Only one invoice is issued per year by the Council.
In addition to the income and expenditure statement and the balance sheet at 30th September 2021 the The accounts include monthly summary tables showing the breakdown of Subscriptions, Yearly Bank Reconciliation, NatWest Bank Reconciliation, PayPal income/transfers, Admin Expenses to be paid, Income and Expenditure. I have not reviewed in detail the makeup of these summaries but the output from each summary can be seen to support the individual entries in the final Income and Expenditure statement.
## **Direction 7**
_If the accounts are prepared on an accruals basis and one or more related party transactions took place the examiner must check if these were properly disclosed in the notes to the accounts._
- 7.1 There are no related party transactions recorded in the accounts.
## **Direction 8**
_Check the reasonableness of the significant estimates and judgments and accounting policies used in accounting for the types of fund held and in the preparation of the accounts._
8.1 The two separate funds of the charity, [Main Activities and Social Activities] have been correctly accounted for and reported correctly in the accounts.
8.2 The estimates or judgments that have been made in preparing the accounts are considered to be reasonable.
8.3 Fixed assets are treated as expenses and are charged within the year of acquisition.
8.4 To the best of my knowledge the accounting policies adopted in preparation of the accounts on an accruals basis are consistent with the applicable Statement of Recommended Practice: Accounting and Reporting by Charities (SORP) and are appropriate to the activities of the U3A.
## **Direction 9**
_The examiner must check whether the trustees have considered the financial circumstances of the charity at the end of the reporting period and, if the accounts are prepared on an accruals basis, check whether the trustees have made an assessment of the charity’s position as a going concern when approving the accounts._
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**Sandbach and District U3A Charity |No. 1105144**
_Where accruals accounts are prepared, the examiner must ensure that the disclosures about going concern required by the applicable Statement of Recommended Practice (SORP) are made and that the trustees’ assessment of going concern is reasonable given the available information. In particular the examiner must check if any material uncertainties related to events or conditions that cast significant doubt on the charity’s ability to continue as a going concern are disclosed in the notes to the accounts._
_Where either receipts and payments or accruals accounts are prepared, the examiner must consider whether the trustees have assessed what invoices, bills and commitments remain outstanding at the end of the reporting period and whether the trustees have identified if they can settle these as and when they fall due._
9.1 The charities funds come from membership subscriptions and group attendance fees. The charity aims, as a reserves policy, to maintain financial reserves level at least half the total annual venue costs and no more than half the total annual expenditure to cover any sudden increases in expenditure.
Because of Covid restrictions total income from main activities has reduced from £52,691 last year to £23,757 this year and income from social activities is reduced from £17,243 to zero this year. However the reserves increased by £5795 to £27,964 due reduced losses on group activities.
To compensate members for the lack of activity this year the Charity has decided to reduce the subscription fee from £10 to £5, for next year only. The Treasurer estimates will give rise to a loss of circa £12,000 albeit with increased activity charges to members. However even with the reduction in membership fees and the predicted loss, this years reserves still likely to be more than half of next year's venue costs and more than half of the total annual expenditure as required by the policy.
9.2 Because the charities funds come from membership subscriptions and group attendance fees and nearly every group's fee income covers its venue and activity costs the groups are essentially self financing. If an activity group's income becomes consistently less than expenditure the mismatch is highlighted by the Treasurer at management committee meetings and the activity fee adjusted to ensure the group breaks even. If, as under present circumstances, an activity does not take place the loss of activity fee income is usually matched by a much reduced or zero venue cost. The self financing aspect of group activities and trips and outings has meant that even when confronted an almost complete stoppage of U3A activities there has been no recourse to the reserves.
The charity is therefore able to settle its bills and meet its liabilities in a timely way and in the ordinary course of events without recourse to the reserves. However, for next year only, some recourse to the reserves may be necessary but the trustees are alert to the need to balance venue costs with income to ensure that activity income will at least break even with expenditure to limit any further demand on the reserves.
9.3 The trustees consider that they have adequate reserves and I have found no material discrepancy between the accounts and the level of reserves referred to in
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## **Sandbach and District U3A Charity |No. 1105144**
the trustees’ annual report. Accruals accounts have been prepared on a going concern basis and the level of reserves and provision for bills as they fall is considered adequate.
David Twidale Independent Examiner 28/09/21
Appendix 1 Chart showing Membership income flow in SWISH and Activity Groups income flow in SWISH.
## **References**
1. Constitution of Sandbach U3A
2. U3A Annual Accounts for the year ended 31st August 2021.
3. Balance Sheet U3A Annual Accounts for the year ended 31st August 2021.
4. U3A Annual Accounts for the year ended 31st August 2010.
5. Check of invoices v payments for month of November 2020 & August 2021.
6. Check of Cash at Bank and in Hand.
7. eMail re Zoom and Sandbach Fitness Studio invoices.
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**Sandbach and District U3A Charity |No. 1105144**
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