Association j ,, Chairs S,upporting charity and non-profit chairs Company number.. 08287034 Charlty number: l 154293 Association of Chairs Report and financial statements For the year ended 31 March 2024 •ADEUGPPN* 3011012024 COMPANIES HOUSE A13
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Contents Reference and Admlnistratlve Details Chair's Foreword Trustees, Annual Report Independent Examiner's Report 25 Statement of Financial Actlvitles 27 Balance Sheet 28 Notes to the financial statements 30
As50clatlon of Chalrs Reference and Adminlstratlve Detalls For the year ended 31 March 2024 Reference and Administrative Details Company number Charlty number 8287034 1154293 Reglstered office 7-14 Great Dover Street, London, SEI 4YR Trustees Trustees, who are also dlrectors under company law, who served durln9 the year and up to the date of thls report were as follows.. Danny Curtln Jonathan Uoe) Saxton Chalr (reslgned 21 si June 2023) Chair (appointed as trustee 17rh May 2023, Chair from 22ndJune 2023) Vlce Chalr (from 17Th May 2023) Treasurer Iresigned 19th September 2023) Treasurer (appolnted 17th January 2024) (re51gned 171h January 2024) Diane Reld Llz Pepler Pradeepan Velayuthan Peter Beverlev Anthony Blackman Chrlstopher Cornforth Stephen Craker Jane Hustwit Malcolm John Franclne Peyroux-slssoko Rashml Rungta Uday Thakkar Julla Tybura Alex Xavler Ireslgned 19th September 2023) lappolnted 17th January 2024) (appolnred 17ih January 2024) (reslgned 2nd May 20231 (appolnted 17th January 2024) Honorary Presldent Ruth Lesirge Prlnclpal staff Rosalind Oakley Chlef Executlve (io December 2023) Head of Operatlons and Servlces (to December 2023) Interlm Chlef Executive (from November 2023) Dan Blshop Llz Lowther
Assoclatlon of Chalrs Reference and Admlnlstratlve Detalls For the year ended 31 March 2024 Banker5 CAF Bank Ltd 25 Kings Hill Avenue Kings Hill, West Malling MEI 9 4TA Sollcltors Bates Wells l O Queen Street Place London. EC4R I BE Independent Examlners Chariot House Ltd, Chartered Accountants 44 Grand Parade Brighton, East Sussex BN2 9QA
Assoclatlon of Chalr5 Chalr's Foreword For the year ended 31 March 2024 Chair's Foreword We have seen a lot of change at the Association of Chairs over the last year. The biggest change is that Ros Oakley, our co-founder and our CEO, moved on. The organisation and the world of charity governance owes her an enormous debt. She had the vlslon along with Ruth Lesirge in foundlng the Association of Chairs l O years ago. And since then she has worked tirelessly in driving the organisation and our work forward. Ros - thank you. As well as Ros, Dan Bishop, our Head of Operations and Services, also moved on. In fact all the staff of Aoc changed durlng the year along wlth flve of our trustees who came to the end of thelr terms or resigned for other reasons. I thanked Danny Curtin In my foreword last year for all his hard work as Chair of Aoc. This means one of our big challenges this year has been making sure we kept as much of our organisational knowledge as possible, while also making sure we continued to deliver. l am pleased to say that we have managed to keep thlngs afloat! We appolnted Llz Lowther as Interim CEO In November 2023, and she has been doing a fantastic Job. We also recruited four excellent new trustee5 Julia Tybura, Praddy Velayuthan, Rashmi Rungta and Stephen Craker. Despite all the human change during the year, we have managed to keep our flnances under control too, with a small surplus after two years of deficits, which Is very good news. One of the challenges of runnlng a small organlsatlon Is finding the capacity to keep the day to day going, while also trying to find the capacity for developing plan5 for the future. It is for this reason that l am particularly pleased that we have managed to develop a new strategy over the course of the year, and we released it formally In July 2024. Thls wlll act as our guide for our work for the next 3 years. We based a lot of our thlnklng for our strategy on a survey we carrled out In autumn 2023 which got over l 000 responses from chairs and trustees. This we hope will give us really strong evidence for our strategy being based on what chairs really want and need.
Association of Chairs Chalr's Foreword For the year ended 31 March 2024 The challenge remains for Association of Chairs that we need to reach more chairs, and we need to help our current members in more ways. We also know from our research that many chairs want us to provide support for their whole board, not just the chair. There is much to do, and one of the tasks that will absorb us for the coming year is building a new database and a new website as a foundation for our plans. There Is no shortage of thlngs to do! Joe Saxton, Cha/r
Assoclatlon of Chalrs Report of the Trustees For the year ended 31 March 2024 Trustees, Annual Report The trustee5 present their report and the independently examined financial statements for the year ended 31 March 2024. Reference and admlnlstratlve information set out on page 3 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association, and the Statement of Recommended Practice Accounting and Reportlng by Charities, the latest version of which has been applicable from T January 2019, The year in summary 2023124 £222.300 £216,426 1066 76 1,887 2022123 £195,048 £285,669 957 56 1,567 Total Income Total expendlture Membershlp (as at 31 Mar) Event5 held Booklngs for events 2023-24 was another challenglng year for many in our soclety, for the charltles and non-profits who seek to support them and those who chalr them. Many of our members reported growing demand for their organisations, services, rising costs and pressure on income. There have also been reports of difficulties in recruiting volunteers and finding trustee5. These pressures can make the task of leading the board slgnlflcantly more challenglng, wlth difficult declslons about balanclng misslon and money. Partlcularly In small organlsations a lot of the burden falls on chairs, who often have not only a governance role, but in the absence of staff, also take on operational responsibilities. Our role has been to offer support and encouragement to those In chairing roles by providing events and resources and opportunities to meet, and by speaklng up when needed. Chairs tell us our support is helping them, offering reassurance, inspiration and practical support, and making them feel less alone. It has been a year of change at the Association of Chairs, wlth the departure of our founding Chief Executive, Ros Oakley, In December, together with our Head of Services and Operations, Dan Bishop. Despite this loss of institutional knowledge, the arrival of a new Chair, Joe Saxton, in June 2023 and interim Chief Executive Liz
Association of Chalrs Report of the Tru5tee5 For the year ended 31 March 2024 Lowther in November has enabled us to continue our activities, develop new ones and move forward with strong momentum. Our membership has grown over the past year to 1066 members, a growth rate of I l %, partly thanks to our partnerships with federated charities. We held more events than last year (76156), with an increased number of bookings (1,887/1,567). Our Income Increased by 14% compared to the previous year. This included a 20% increase In our earned income. This was thanks to growth in both our membership income and income from events, the latter including bespoke events for our federated charity partners. OLJr expendlture was down by 24% compared to the previous year, largely due to a reduction in staff costs, as well as careful stewardship of other expenditure, partlcularly on admlnistratlve costs. We ended the year with a small posltlve balance of funds, following two years of planned deflclt budgets. Our unrestrlcted reserve5 at year end were a Ilttle hlgher than the upper end of our target range. Structure and governance The organisation is a charitable company limited by guarantee, incorporated on 8 November 2012, and registered as a charity on 21 October 2013. The company was established under a Memorandum of Assoclatlon which established the objects and powers of the charitable company and is governed under Its Artlcles of Associatlon. The charlty trustees are also dlrectors of the charitable company and are referred to as trustees throughout this report. New trustees are selected and appointed by the board for a period of four years, renewable for a second four years. All trustees contribute operatlonal time and expertise to the staff team, as well as holdlng their governance roles, and many are former or current chairs or vice chairs. In selecting trustees, the board considers the skills, experience and dlverslty of the board, the need for capacity to develop the Association, the need for contlnuity, and Aoc's constituency - those in chairing roles In charities and non-profits. When recruiting new trustees we advertise in our newsletters, social media and other listings. We aim to follow best practice with an inclusive recruitment process. All new trustees are inducted by the Chair and Chief Executive and offered a buddy. training and support to fulfil their trustee duties as appropriate.
A5soclatlon of Chairs Report of the Trustees For the year ended 31 March 2024 During the financial year 2023-24 five trustees left the board and five joined. Changes to the board during the year are listed on page 3. Danny Curtin ended his term on the board in June 2023, having served eight years (four as Chair). Following an external recruitment process which resulted in a strong and diverse shortlist, the board appointed Joe Saxton as our new Chair to start in June 2023. Before taking up his post at Aoc, Joe chaired infrastructure bodies Including Charitycomms and the Instltute of Fundralslng (now Chartered Institute of Fundralsing). He has also been Chair at People & Planet and Parentklnd. Diane Reid was appolnted as Vlce Chalr in May 2023. Llz Pepler stepped down as treasurer In September 2023 and Pradeepan Velayuthan took up this role in January 2024, Our objects and our public beneflt The objects of the charity are, for the publlc beneflt: to advance educatlon;. and the promotion of the voluntary sector, in particular, but without limitation, by developing the skills and capacity of chairs of voluntary, community and social enterprise organisations which exist for public and community benefit. The trustees glve due regard to the guldance contalned In the Charlty Commlsslon's general guldance on public beneflt when reviewlng the charity's alms and objectives, exercislng relevant powers and duties, and In plannlng Its future activities. In partlcular, the trustees consider how planned activities will contribute to the aims and objectlves that have been set. Our annual strategy away day places a particular focu5 on our mission, objects, Impact, public beneflt, and our theory of change. We seek to provide a direct benefit to chairs and vlce chairs, so that they in turn enhance the publlc beneflt of the organisations with which they are Involved. We have developed formal governance and operational policies and procedures. These cover many areas including delegated authority, managing potential conflicts of interests, data protection, risk management, reserves, corporate donations, protecting people from harm, whistleblowing, dignity at work, complaints, concerns and feedback, health and safety and environmental policy. Trustees regularly update their declaration of interests.
Assoclatlon of Chalrs Report of the Trustees For the year ended 31 March 2024 Our mission Our mission is to champion charity chairs and their boards in all their diversity, empowering them with confidence, collaboration, and community. Our vision Is of effective and valued chairs, With flourishing boards, leadlng resilient charities and non-profits which make a positive impact in the world. We believe that effective chairing and leadership of the board help the organisation to be the best it can be and achieve the best outcomes for those who benefit from Its support. We know that it can be hard to evidence the Impact of a good chair but easy to see the impact of poor chairing, which can wreak havoc In a charity and contribute to poor organisational performance. De5plte the complexity of thls leadershlp role, there Is Ilmlted Investment in the training, support and development of chairs, by the government, support bodies or charities themselves. Therefore, our members value having a dedicated organisation that they can turn to for support on Issues includlng organisational re5illence, managing finances, finding appropriate, dlverse trustees, relationshlps within the board and the relationship with the Chief Executive. Staff and freelance support Our small staff team contlnues to work hard and flexlbly, wlth staff splittlng thelr time between our office in London and their homes. We're grateful to all our staff for their contributions to Aoc. During the year we said goodbye to our Head of Operations and Service5, Dan Bishop, and our Team Administrator. Stephanie Brisland. Our founding Chief Executive, Ros Oakley, also moved on after ten years at the helm, during which time she contributed Immeasurably to the development of the organisation. The board is enormously grateful to Ros for her dedicated leadership. As of 31 March 2024. we employed one part-time staff member, our interim Chief Executive Liz Lowther. Zoe Marsden continued to provide freelance bookkeeping support, and Lally Pearson provided freelance support leading our London Project, funded by City Bridge Foundation.
Assoclatlon of Chalrs Report of the Trustees For the year ended 31 March 2024 Our activities In 2023-24 we continued to focus on our core areas.. l. New chalrs supporting new chairs by setting good foundations 2. Understandlng the role of chalr covering the essentials for effective and collaborative governance leadership and avoiding common pitfalls 3. Bulldlng effectlve board relatlonshlps helping chairs to build strong, diverse board teams with shared vision, able to commit to decisions 4. Worklng well wlth the CEO ensuring this key relatlonshlp works well for the organisation. Events and training We ran regular events and training covering these core areas and gained con51Stently good feedback. This year we ran more events than ever before, with 1,887 people booked to attend 76 events on a wide variety of topics. The majority of our events were held onllne for maxlmum accesslblllty across the country. Most were free or very low cost. All are free or dlscounted to members, wlth some exclu51ve to members. We also ran bespoke events for member chairs of our federated charity partners Age UK and National Federation of Women's Institutes, and continued to deliver our popular Dynamic Duo workshop for chairs and CEOS, In partnership with ACEVO. 96% of suNey respondents across our events during 2023-24 said the event was good or very good and 95% would be very or qulte Ilkely to recommend the event to another chair or vlce chair. 66% said they would do something dlfferently after attending one of our events. Topical challenges We continued to develop events In response to current and emerging needs, all focused on the chair's perspective and the contrlbution they can make. We aimed to offer practical ideas and actionable inslghts.
Association of Chairs Report of the Trustees For the year ended 31 March 2024 Key themes this year included addressing financial difficulty and looking after people. This included sessions on the chair's role in leading through financial uncertainty, risk management for chairs and the chair's role in well-being for themselves, their board and their organisation. An In-person chalr-to-chair event with Orlando Fraser, Chalr of the Charity Commission, in June 2023, recelved nearly l 00 booklngs. It provided a chance for chairs to learn more about the Charity Commission's approach to supporting trustees in getting things right, to put their questions to Orlando, and to network with their peers, Our events are all delivered by experts who understand the chalr's role and are willing to share thelr experlence and knowledge freely. We would Ilke to thank all of our volunteer event speakers who gave their time in 2023-24 to help us deliver a wide range of engaging and informative events. Membership and reach Growlng our membershlp and reach Is Important to us as It helps us to be more Incluslve, have more Impact and bulld our financlal su5talnabllity. Member5hlp has started growing again slnce the end of the pandemlc and is now at an all-time hlgh. We remain keen to grow It further, and this Is a core part of our new 3-year Strategy, startlng in 2024-25. Our members in 2023-24 came from charities and non-profits, both small and large. The majority had between one and ten paid staff, had income between £ I Ook and £1 mllllon, and operated locally. Over half of our members were In their first chairlng role. Included In thls number were 17 bursary members, for whom our membershlp fee presented a barrler to accessing our servlces. Our partnerships With federated charities Trussell Trust and Age UK enabled us to provide discounted memberships for chairs in their networks. We continue to be grateful to the Lloyds Bank Foundation (England and Wales), Charity Governance Awards, Ea5tside People and the Black and Asian Future Chalrs, Academy for sponsoring membership5 for chalrs supported by thelr organlsations.
Assoclatlon of Chalrs Report of the Trustees For the year ended 31 March 2024 Developing an inclusive community An important theme of our work during 2023-24 was developing a stronger and more diverse community of chairs and enabling them to support each other. This was helped by a 3-year grant from City Bridge Foundation to deliver peer support and mentorlng for London chairs. Beginning In 2023, we are using this experience as a pllot to help us roll out greater peer-to-peer opportunities across our network. We delivered 16 peer learning and support sessions In the past year, 4 of them in- person in London and the other 12 online so that members across our network could come together to share challenges and learn from each other. Bl-monthly meetings of our Chalrs of Large Charities Network continued, facllltated by our former trustee, Helen Baker. In September we launched our co-mentoring scheme, Initially open to London chairs only. We match chairs to mentor and listen to each other over a 6-month period. A total of 76 individuals took part in the scheme during 2023-24. In January 2024 we launched our WhatsApp group for chairs. as a new channel for our members to connect wlth each other, post questions and share Insights and experience. Thls has proved hlghly popular, wlth 147 members joining by 31 March 2024. Our Linkedln Group for London chairs was also launched early in 2024, with 139 members already signed up by 31 March. We are keen to support greater equlty, diverslty and Inclusion among the chalrlng communlty, and have contlnued to hold events on dlfferent aspects of EDI offered free or at a discount. We held three onllne events thls year focused on building inclusive boards and widening the pool of people who take up chairing roles. These were held in partnership with Action for Trustee Racial Diversity (ATRD) and Getting on Board. Feedback from participants at our November event with ATRD suggested that 67% would do somethlng differently as a result of attending the event, including exploring mentoring, buddying or coachlng as a standard part of the route into becoming a trustee, and promoting positive practice in thelr charlty with others.
Assoclatlon of Chalr5 Report of the Tru5tee5 For the year ended 31 March 2024 Resources and support We continued to develop and maintain our website, sharing content and signposting to popular issues related to the chairing role, including working well with trustees and your chief executive, and legal and compliance issues. Our website saw 37,656 engaged visits over the course of the year. We sent out 14 newsletters, each going to around 8,920 individuals (including both Aoc members and non-members} and posted 13 blogs with advlce and resources for chairs on a variety of topics including diversity, co-chairing and the chair's leadership on finance. Each week 20-30 people downloaded A Chair's Compass, our key guide to chairing, In October 2023, with 5UPPOrt from the National Lottery Community Fund in Wales, we published a Welsh-language edition of A Chair's Compass, now available to download from our website. We regularly responded to Indlvldual queries from our members. vla phone, emall and our online contact form. Chairs asked us for help and guidance with a wide range of challenges they were facing, including I:1 support for more complex and immediate difficulties. We are grateful to our Founder and Honorary President, Ruth Lesirge, for generously sharing her expertise and providing a listening ear in support of this. Our onllne peer sharing sessions and WhatsApp group have also proved a great source of help, resource and reassurance for chairs.
A550clatlon of Chalrs Report of the Trustees For the year ended 31 March 2024 Partnerships and advocacy Working in partnership is hugely important to us. In 2023-24 we continued to build successful partnershlps with federated charities including Trussell Trust and Age UK and developed new partnershlps and offers wlth the National Federation of Women's Institutes and Citizens, Advice. These enabled us to provide discounted memberships and bespoke events for chairs of their federated charities across the UK. We continued to develop informal partnerships with Action for Trustee Racial Diversity, Getting on Board and the Young Trustees Movement, based on our shared interest In supportlng greater dlverslty and Incluslon on charlty boards. In 2023-24 we jolned the steering group of the Power of Small project. led by NCVO to provide better infrastructure support for small voluntary organi5ations. We were a preferred supplier of Lloyds Bank Foundation for England and Wales, providing access to our services for chairs of the small and local charities they fund. They also provided Invaluable support to us In the form of a pro bono dlgltal consultant. We are on the steering group of the Future CharSty Chair project, led by Bayes Buslness School Centre for Charity Effectiveness, and of the Charity Governance Code, which continues to develop and influence governance good practice in the sector. We contlnue to raise the profile of chalrlng and its contribution to charities and non-proflts belng well-run and effectlve In dellverlng thelr mlsslon. We are members of the Strategic Oversight Group of the Civil Society Group, a grouplng of infrastructure organisatlons keen to cooperate and learn together. We also meet quarterly with the CEO and senior managers at the Charity Commission, raising issues of concern to chalrs and vice chairs.
Assoclatlon of Chalr5 Report of the Trustees For the year ended 31 March 2024 Our commitment to equity. diversity and inclusion (EDI) Equity, diversity and inclusion continues to be an important theme of our work. Our EDI board sub-committee, made up of both trustees and staff, has been renewed followlng trustee and staff changes. The purpose of the commlttee Is to ensure equity, diversity and inclusion are at the heart of Aoc's governance and practice and that we use our position to influence others including our members. The EDI sub-committee has the following roles: l. to help-us develop our thinking and understanding of EDI 2. to develop our policy position 3. to support the Staff In developlng actlon plans 4. to support the staff team in the implementation and dellvery of Aoc's plans 5. to make recommendations to the board to advance our work on EDI. There Ss continued and growing interest among our chairing community in supporting greater equltyty diverslty and incluslon on boards, Including understanding how to bulld more Incluslve boards and address barrlers that prevent a wlder pool of people from taklng up chalrlng roles. We have contlnued to run events thls year on these themes and develop the EDI resources section of our website. We have also continued to build our partnerships with organisations with interest and expertise in this area, including Action for Trustee Racial Diversity, the Black and Asian Future Chairs, Academy, Getting on Board and the Young Trustees Movement. Our London project Includes a speciflc focus on engaglng London-based chalrs on EDI through regular resources and events, targeted work to engage and support more chairs from underrepresented groups and building our partner5 community. Looking to the future Demands on charltles and non-profits are increasing, and so are the pressures on thelr own ability to cope. At the same tlme the ability to generate funds is gettlng harder. Both of these factors have put more pressure on board5 and especlally chairs. We understand that the operating environment is going to be particularly difficult for some time to come. The skills and ability of the chair are going to be even more important in delivering stability and success for their organisation. This
A5soclatlon of Chalrs Report of the Trustees For the year ended 31 March 2024 means that the need for our work is only growing, as is the recognition of its importance both from chairs themselves and from other sector bodies. As we launch our next 3-year strategy, over the coming year we have five goals.. Increase the breadth and depth of engagement wlth chalrs People appreciate what we do; we want more people and a more diverse group of chairs to benefit. We will continue our efforts to reach more people in different ways by broadening our range of actlvltles, communications and resources. Foster a more Incluslve communlty Bulldlng on our London project, we wlll continue to offer more peer support and opportunities for engagement for chalrs across our network and at all stages of their board leadership journey. We will bring In new voices and build a more diverse and engaged community. Bulld a more sustalnable organlsatlon In order to achieve our goals, we need to increase our earned income from membership, events, and consultancy, and retain more of our members for longer. Clarlfy and strengthen our Infrastructure We will Invest In our organlsatlonal Infrastructure to Support the efflclent dellvery of our ambltlous plans, Including a new CRM and webslte. Champlon. advocate for and develop strong board leadershlp sklllsl partlcularly by chalrs We will begin to publish our ideas on how we want chairing, trustee boards and governance to develop in a way that does justice to the staff, their peers and the mission of the charity. We celebrated our tenth year as a charity in October 2023. We are proud of all we've achieved so far In supporting and championing chalrs, enabling them to lead effective boards and effective non-proflts.
Assoclatlon of Chalrs Report of the Tru5tee5 For the year ended 31 March 2024 Review of risks The board is aware of its responsibility for managing risk, so has set up systems for identifying, managing, and monitoring this. These include a strategic risk register, with a regular review of risks and how to manage them at board meetlngs. Areas of rlsk Include: safeguarding and protecting people and protecting their wellbeing, ensuring we have impact, ensuring compliance, managing growth/capaclty, fostering a positive culture and reputatlon, dellvery of high-quallty servlces, and achleving financial sustalnability. Financial sustainability Aoc experiences the usual challenges with respect to its long-term financial sustalnablllty as do many small charltles. The board remalns focused on understanding and managlng Its flnanclal rlsk, and we commit operational and governance tlme on plannlng for the future. We currently have a good level of free reserves which helps to protect against financial uncertainties. The board is focused both on tight cost control and on increasing income. With careful management we are confident that we can continue to meet the needs of chairs, whilst ensurlng our own financlal vlability. We are fortunate that a number of our funders glve us multi-year unrestricted support. This is invaluable as it allows us to Use it to maximum effect, depending on what is most necessary at the time. While grants remain very important to us, we are also focused on growing our earned income from memberships, events and consultancy services. We are keen to grow our income so that we can better serve chalrs, selze the many. opportunities for development and make more rapld progress In Improving governance in the sector.
As50clatlon of Chalr5 Report of the Trustees For the year ended 31 March 2024 Flnancial performance in 2023124 2023124 £222,299 £216,425 £5,874 £206,432 2022123 £195,048 £285,669 (£90,621) £197,190 Total income Total expendlture Operating surplus/(deficit) Reserves (unrestrlcted) carrled fOard Review of the year After two years of running planned deflcits, we ended the year to March 2024 with a small positive balance. Our Income Increased by 14% compared to the previous year. This included a 20% increase in our earned income. This was thanks to growth in both our membership income and Income from events, the latter including bespoke events for our federated charlty partners. Our expenditure was down by 24% compared to the previous year, largely due to a reduction In staff costs, as well as careful stewardshlp of other expendlture, partlcularly on admlnlstratlve costs. Our unrestrlcted reser4es at year end were a Ilttle hlgher than the upper end of our target range. Our business model Aoc has a modest Income and expenditure, given its national volce and reach. Our income is a mix of grant income (both restricted and unrestricted), donations from corporate partners and earned income from memberships, events and services. In 2023-24 our earned income grew to 46% of our total income, and we are aimlng to increase this proportion Incrementally over the comlng years. Bulldlng our membershlp Is crltlcal to our long-term sustainability and reslllence. Income from grants enables us to keep the fee5 low as we do this, and to introduce new products and services that improve the value we offer to our members.
Assoclation of Chalrs Report of the Trustees For the year ended 31 March 2024 Financial strategy Our long-term financial strategy is to rebalance our income away from grant dependency by growing our earned income to cover our core costs. This will entail introducing new types of memberships, including organisational and corporate memberships, as well as contlnuing our partnerships with federated charities and others to support their chairs through memberships, events and services. We will continue to seek grant funding to enable us to develop new services and scale up our ambltlon. Next financial year A modest Increase In both income and expenditure have been budgeted for 2024- 25. We started the year with £105,000 in grant funding already secured. In order to deliver our growth strategy we are planning to Invest some of our unrestricted reserves in digital developments that will support more efficient operations. Reserves policy Aoc adopts a rlsk-based approach to Its reserves. The pollcy Is based on a forward assessment of Income and expendlture and the wider economic environment In which we operate. We consider how much of our income is secured, and the extent to which our costs are fixed or variable. We receive a mlx of funding, and some is for specific purposes. These are restricted funds and are not available for expendlture on other purposes. The remaining funds are unrestricted and can be used across our activities. The reserves are the unspent unrestrlcted funds of the charlty, referred to as the general funds In the financlal statements. Aoc currently owns no flxed assets, so the reserves are held in cash or short-term assets such as debtors (amounts due from members or funder5). 20
Assoclatlon of Chalrs Report of the Trustees For the year ended 31 March 2024 The purpose of the reserves is: to invest in expanding and enhancing our services to members In Ilne wlth growing demand, to fund working capital and time lags in the receipt of promised funds, to fund unexpected expenditure, for example when projects overrun, or unplanned events occur, to manage economic or regulatory changes which may have unforeseen financial consequences, and to help manage through a posslble downturn in income. Our policy requires us to maintain reserves within the range of £125,000 to £200,000. Our minlmum reserve Is sufflclent for an orderly wlnd down should the need arise. As of 31 March 2024, the actual level of unrestricted reserves was £206,432, slightly above the target range. This allows us to invest some funds in operational Improvements in 2024-25, while comfortably maintainlng reserves above the mlnlmum as we seek addltional grant and earned Income. We have built flexlblllty Into our plans so that we can adapt to changing clrcumstances including cost savings should we fail to hit income targets. We are confident that the coming year will enable us to further refine our business model and plan for future growth. 21
A550clatlon of Chalrs Report of the Trustees For the year ended 31 March 2024 Thank you to our supporters... Our achievements would not be possible without our supporters. We would like to thank these funders: CCLA City Bridge Foundatlon Garfield Weston Foundation Lloyds Bank Foundation for England and Wales National Lottery Community Fund Paul Hamlyn Foundation Pears Foundation The Chartered Accountants, Llvery Charlty and a speclal thank you to our volunteers Over the past year, Aoc has benefited significantly from the contribution of volunteers. We would particularly like to thank Ruth Lesirge, Aoc's Honorary President, for the ongoing advice and support she provldes to our members and staff. We are a150 immensely grateful to Stephen Warren, who provlded conslderable high quallty IT support for a number of years. Once again, the contribution of trustees beyond thelr trustee role was slgnlficant and we are extremely grateful for thelr support to our operational activitie5, These include (but are not limited to> facilitating peer session5, coaching and mentoring our staff, acting as ambassadors for the organisation and contributing to our communications. In partlcular, we wish to recognlse and record our thanks for the exceptlonal operational support provlded by our Chair, Joe Saxton, during the perlod of transition following the departure of our two most senior staff. 22
As50clatlon of Chalrs Report of the Trustee5 For the year ended 31 March 2024 We would also like to thank: Chairs who have led peer sessions, and experts who have led topical sesslons, Members of our volunteer and associate pool who generously share their professional expertise at low or no cost, and All the chairs, profe5slonal advlsers and professlonal coaches who have glven their time and expertise to Aoc by speaking at events, writing blogs and offering free coaching support. Statement of responsibilltles of trustees The trustees (who are also dlrectors of Association of Chairs for the purposes of company law) are responsible for preparing the directorsltrustees, annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accountlng Practlce). Company law requlres the trustees to prepare flnanclal statements for each financlal year whlch give a true and fair vlew of the state of affalrs of the charltable company and of the incoming resources and appllcatlon of resources, Includlng the income and expenditure, of the charitable company for that period. In preparing these financial statements, the tr.ustees are required to: Select sultable accounting policies and then apply them consistently Observe the methods and prlnclples in the Charitles SORP Make Judgements and estlmates that are reasonable and prudent State whether applicable UK Accounting Standards and statement5 of recommended practice have been followed, subject to any material departures disclosed and explalned in the financial statements Prepare the financial statements on the going concern basis unless It Is Inappropriate to presume that the charity will continue in operation. 23
Assoclation of Chairs Report of the Trustees For the year ended 31 March 2024 The trustees are responsible for keeping proper 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 preventlon and detectlon of fraud and other Irregularltles. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of flnancial statement5 may differ from leglslatlon In other Jurlsdlctlons. Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2024 was I l (2023 - 11). The trustees are members of the charlty, but thls entltles them only to votlng rights. The trustees have no beneficial Interest In the charlty. The trustees, annual report has been prepared In accordance wlth the special provisions appllcable to companles subject to the small companies, regime. Approved by the trustees on 18 September 2024 and signed on thelr behalf by Joe Saxton Chair of Trustees 24
Assoclatlon of Chalr5 Independent Examlner's Report For the year ended 31 March 2024 Independent examiner's report to the trustees of Association of Chairs ('the Companv) I report to the charlty trustees on my examlnatlon of the accounts of the Company for the year ended 31 March 2024. Responslbllltles and ba515 of report As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act,). Having satlsfled myself that the accounts of the Company are not requlred to be audlted under Part 16 of the 2006 Act and are eligible for Independent examination, I report In respect of my examinatlon of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act. Independent examlnees statement I have completed my examination. I conflrm that no matters have come to my attentlon In connection with the examlnatlon glvlng me cause to belleve: accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act. or the accounts do not accord with those records; or the accounts do not comply with the accounting requlrements of Sectlon 396 of the 2006 Act other than any requlrement that the accounts give a true and fair view whlch is not a matter consldered as part of an independent examinatlon; or the accounts have not been prepared In accordance wlth the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). 25
Associatlon of Chalr5 Independent Examlner's Report For the year ended 31 March 2024 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. Dr Shona F Wardrop C.A The Institute of Chartered Accountants of Scotland Chariot House Limited Chartered Accountants 44 Grand Parade Brlghton East Sussex BN2 9QA Date: 26
Associatlon of Chalrs Statement of Flnanclal Actlvltles For the year ended 31 March 2024 2024 Total funds 2023 Total funds Unrestricted Restricted fund funds Notes INCOME AND ENDOWMEKfs FROM Donations and legacies 59,978 56.000 115,978 110,125 Charltable artlvltles Charitable Activitie5 102,022 102,022 83,209 Investment income 4,299 4,299 1.714 Total 166,299 56,000 222,299 195,048 EXPENDMJRE ON Raising funds 20,183 Charltable actlvltles Charitable Activities 157,057 59,368 216,425 265,486 Total 157,057 59,368 216,425 285,669 NEf INCOMEI(EXPENDITURO 9,242 (3,368) 5,874 (90,621) RECONCIUATION OF FUNDS Total funds brought forward 197,190 10,554 207,744 298,365 TOTAL FUNDS CARRIED FORWARD 206,432 7,186 213,618 207,744 27
Association of Chalrs Balance sheet For the year ended 31 March 2024 2024 Total funds 2023 Total funds Unrestricted Restricted fund funds Notes FIXED ASSErs Investments CuRREr ASSErs Debtor5 Cash at bank 12,044 205,992 12.044 213,178 4,998 218,625 7,186 218,036 7,186 225,222 223,623 CREDITORS Amounts falllng due wlthin one year 15 (11,605) (11,605) (15,880) NEf cuRREr ASSEfs 206,431 7,186 213,617 207,743 TOTAL ASSEfs LESS CURRENT LIABILITIES 206,432 7,186 213,618 207,744 NEf ASSErs 206,432 7,186 213,618 207,744 FUNDS Unrestrlcted funds Restricted funds 16 206,432 7,186 197,190 10,554 TOTAL FUNDS 213,618 207,744 The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024. The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 in accordance with Section 476 of the Companies Act 2006. 28
Assoclatlon of Chalrs Balance sheet For the year ended 31 March 2024 The trustees acknowledge their responsibilities for (a) ensuring that the charitable company keeps accounting records that comply with Sections 386. and 387 of the Companies Act 2006 and (b) preparlng financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each flnanclal year and of Its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. These flnancial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small.companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on 18ih September 2024 and were signed on its behalf by: J H C Saxton - Trustee 29
A550clatlon of Chalr5 Notes to the Flnanclal Statements For the year ended 31 March 2024 ACCOUrING POUCIES Basls of preparlng the flnanclal statements The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared In accordance with the Charities SORP (FRS 102) '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) (effective l January 2019),, Financlal Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are Included at market value. Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. Income from grants, whether 'capltal' grants or 'revenue' grants, Is recognised when the charity has entltlement to the funds, any performance condltlons attached to the grants have been met, it Is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance of the provision of a specified service Is deferred until the criteria for income recognition are met. Donatlons of glfts, seNlces and facllltles Donated professional serrfices and donated facilitles are recognised as Income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time Is not recognised. On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been wllllng to pay to obtain services or facilities of equivalent economic benefit on the open market. a corresponding amount is then recogni5ed in expenditure in the period of receipt. 30
Assoclatlon of Chalrs Notes to the Flnanclal Statements For the year ended 31 March 2024 ACCOUNTING POLICIES - contlnued Interest recelvable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charlty; this is normally upon notlflcatlon of the interest paid or payable by the bank. Expendlture Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured rellably. Expendlture on charitable actlvltles Includes the costs of providing servlces to members, running events and distributing publications to further the purposes of the charity and their associated support costs. Irrecoverable VAT 15 charged as a cost against the activity for which the expenditure was incurred. Taxatlon The Charity Is consldered to pass the tests set out In Paragraph I Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part I I Corporation Tax Act 2010 or Sectlon 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such Income or gains are applied exclusively to charitable purposes. Fund accountlng Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. 31
A5soclation of Chalrs Notes to the Flnanclal Statements For the year ended 31 March 2024 ACCOUNTING POLICIES - contlnued Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Short term deposlt5 Short term deposit5 includes cash balances that are Invested In accounts with a maturity date of between 3 and 12 months. Cash at bank and In hand Cash at bank and cash In hand Includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Credltors and provlslons Creditors and provlsions are recognlsed where the charlty has a present obllgatlon resulting from a past event that wlll probably result in the transfer of funds to a thlrd party and the amount due to settle the obligatlon can be measured or e5tlmated rellably. Credltors and provlslons are normally recognlsed at thelr settlement amount after allowlng for any trade discounts due. Flnanclal Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic flnancial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortlsed cost using the effectlve Interest method. Penslons The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the company to the fund. The company has no liability under the scheme other than for the payment of those contributions. 32
A5sociatlon of Chalr5 Notes to the Flnanclal Statements For the year ended 31 March 2024 ACCOUrING POLICIES- contlnued Golng concern The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. In reaching that conclusion, the trustees have considered the impact of the cost-of-living crisis and ongoing flnancial uncertainty in the charity sector on future activities and cash flows and the current and forecast reserrfe base. They believe that if future income is negatlvely affected, the risk of which has been recognised, Aoc's demonstrably flexible delivery model and cost base offer the possibllity of expenditure savings that taken together wlth Its balance of free reserves wlll ensure AOC contlnues to operate. Adaptlons to the service model have and will contlnue to be made to ensure the expectatlons of Its members are met effectively and efficiently. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 33
Assoclatlon of Chalrs Notes to the Flnancial Statement5 For the year ended 31 March 2024 DONATIONS AND LEGACIES 2024 2023 Donations Grants 2,478 113,500 110,125 115,978 110,125 Grants received. included in the above. are as follows: 2024 2023 CCLA Garfield Weston Foundation Paul Hamlyn Foundatlon Pears Foundation The National Lottery Communlty Fund The Chartered Accountants, Livery Company City Bridge Foundation i 0,000 i 0,000 30,000 27,500 20,000 19,625 3,000 27,500 20,000 3,000 53,000 113,500 110,125 INVESTMENT INCOME 2024 2023 Deposit account interest 4,299 1,714 INCOME FROM CHARITABLE AcrivrriES 2024 2023 Actlvlty Charitable Actlvities Charitable Activities Charitable Activities Events Membership Publications and consultancy 22,869 68,774 10,379 22,544 59,975 690 102,022 83,209 34
Assoclatlon of Chalrs Note5 to the Flnanclal Statements For the year ended 31 March 2024 CHARITABLE AcrivrriES COSTS Direct Support Costs (see costs (see note 6) note 7) Totals Charitable Activities 172,709 43,716 216,425 DIREcr cosrs OF CHARITABLE AcrivmES 2024 2023 Staff costs Freelanclng & consultancy Event costs Marketlng and partnershlps Subscriptions, conferences & tralning IT costs HR and recruitment Office costs Insurance, accountancy and other costs Publication costs 119,767 17,310 8,004 919 2,183 9,385 1,314 10,241 774 152,969 44,454 6,646 250 896 7,943 5,633 7,678 2,085 2,812 172,709 228,554 35
A550clatlon of Chalrs Notes to the Flnanclal Statements For the year ended 31 March 2024 SUPPORT COSTS Governance Management cost5 Tota15 Charltable Actlvitles 34,914 8,802 43,716 Support costs, included in the above, are as follows: 2024 Charitable Actlvltles 2023 Total Actlvities Management Wages Freelancing & consultancy Marketing and partnerships Sub5crlptions, conferences & tralning IT costs HR and recruitment Office costs Governance, legal and bank charges 9,936 10,030 13,272 7,328 177 774 7,135 208 6,641 74 655 268 633 3,888 Governance costs Wages Subscriptions, conferences & training IT costs HR and recruitment Office costs Board costs and Independent Examination 2,782 3,138 16 140 333 135 7,052 165 23 35 5,794 43,716 36,932 36
Assoclation of Chairs Notes to the Flnanclal Statements For the year ended 31 March 2024 NEf INCOME/(EXPENDITURE> Net income/(expenditure) is stated after charging/(crediting): 2024 2023 Independent examiner's remuneration 2,520 2,400 Independent examiner's remuneratlon for 2024 Includes the fee for the preparation of statutory accounts. TRu¥fEES' REMUNERATION AND BENEFrrs There were no trustees, remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023. Trustees, expenses Travel and subsistence expenses were reimbursed to 7 trustees totalllng £3,781.74 during the year ended 31 st March 2024 37
Assoclatlon of Chalrs Notes to the Flnanclal Statements For the year ended 31 March 2024 I O. STAFF COSTS 2024 2023 Salarles and wages Social security Costs Pension contributions 120,838 8,262 153,439 12,121 The total employee benefits (Includlng penslon contrlbutions and employer's national insurance) of the key management personnel were £112,590 (2023. £121,985). The average monthly number of employees during the year was as follows: 2024 2023 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 2024 2023 £60,001 £70,000 38
Association of Chairs Notes to the Flnanclal Statements For the year ended 31 March 2024 I I. COMPARATIVES FOR THE STATEMENT OF FINANCIAL AcfiviTIES Unrestricted Restricted fund funds Total funds INCOME AND ENDoWMEfS FROM Donatlons and legacies 87,500 22,625 110,125 Charltable actlvltles Charitable Activities 83,209 83,209 Investment Income 1,714 1,714 Total 172,423 22,625 195,048 EXPENDITURE ON Raising funds 20,183 20,183 Charltable actlvltles Charltable Actlvitles 238,415 27,071 265,486 Total 258,598 27,071 285,669 NEf INCOMEI(EXPENDrruR 186,175) (4,446) (90,621) RECONCILIATION OF FUNDS Total funds brought forward 283,365 15,000 298,365 TOTAL FUNDS CARRIED FORWARD 197,190 10,554 207,744 12. TAXATION The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 39
Associatlon of Chalrs Notes to the Flnanclal Statements For the year ended 31 March 2024 13. FIXED ASSEf INVESfMErS Shares in group undertakings MARKEf VALUE At l Aprll 2023 and 31 March 2024 NEf BOOK VALUE At 31 March 2024 and 31 March 2023 There were no investment assets outslde the UK. The Association of Chairs own5 a Subsidiary, AOC Trading Ltd, registered In England & Wales with company number 09247655. One share of £1 is in issue, representing I 00% of the issued share capital of the company. The subsidiary was incorporated on 3 October 2014. Previously its activities related to activities to raise funds for the Association of Chairs but it is currently dormant. 14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade debtors Other debtors Prepayments and accrued income 7,072 1,044 3,928 1,000 389 3,609 12,044 4,998 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade creditors Social securlty and other taxes Other creditors Accruals and deferred income 7,107 592 2,731 1,175 6,737 (51) 3,024 6,170 11,605 15,880 40
A550ciatlon of Chalr5 Notes to the Flnanclal Statements For the year ended 31 March 2024 16. MOVEMwf IN FUNDS Net movement At 3113124 At 114123 in funds Unre5trlcted funds General fund 197,190 9,242 206,432 Restrlcted funds The Chartered Accountants, Livery Company The National Lottery Community Fund City Brldge Foundation 1,963 8,591 1,037 (8,591) 4,186 3,000 4,186 10,554 (3,368) 7,186 TOTAL FUNDS 207,744 5,874 213,618 Net movement in funds, included in the above are as follows: Incoming Resources Movement resources expended In funds Unrestrlcted fvnds General fund 166,299 (157,057) 9,242 Restrlcted funds The Chartered Accountants, Llvery Company The Natlonal Lottery Communlty Fund City Bridge Foundation 3,000 (1,963) (8,591) (48,814) 1,037 (8,591) 4,786 53,000 56,000 (59,368) (3,368) TOTAL FUNDS 222,299 (216,425) 5,874 41
As50ciatlon of Chalrs Notes to the Flnanclal Statements For the year ended 31 March 2024 16. MOVEMENT IN FUNDS - contlnued Comparatlves for movement In funds Net movement At At 114122 in funds 3113123 Unrestrlcted funds General fund 283,365 (86,175) 197,190 Restrlcted funds The Clothworkers, Company The Chartered Accountants, Llvery Company The National Lottery Community Fund 15,000 (15,000) 1,963 8,591 1,963 8,591 15,000 (4,446) 10,554 TOTAL FUNDS 298,365 (90,621) 207,744 Comparative net movement In funds, Included In the above are as follows: Incoming Resources Movement resources expended in funds Unrestrlcted funds General fund 172,423 (258,598) (86,175) Restrlcted funds The Clothworkers, Company The Chartered Accountants, Llvery Company The National Lottery Communlty Fund (15,000) (15.000) 3,000 19,625 (1,037) (11,034) 1,963 8,591 22,625 (27,071) (4,446) TOTAL FUNDS 195,048 (285,669) (90,621) 42
Associatlon of Chairs Notes to the Flnanclal Statements For the year ended 31 March 2024 17. RELATED PARTY DISCLOSURES Trustees donated £2,000 (2023: £NIL) and paid membership subscriptions and event fees. Fees were paid on the same terms as all other beneficiaries of the charlty. Trustees additionally provlded conslderable amounts of pro bono seNice5 such as facilitating and delivering events, and providing content for the monthly newsletter and online blog. 43