Trustee Annual Reports

Amanda Francis

“……easy access to accurate and relevant information about charities is essential for real accountability, and for trust and confidence in

charities”

Charities and Not-for-Profits, a modern legal framework (2003)

Transparency and accountability – a definition

“…..providing relevant and reliable information to stakeholders in a timely manner that is free from bias, comparable, understandable and focused on stakeholders’ legitimate needs. This means that the information provided is capable of being understood by users with a reasonable knowledge of business, economic activities and accounting and a willingness to study the information with reasonable diligence.”

The Charity Commission

Trustees’ reports

A good trustees’ report:

• Demonstrates resources are being used wisely and for the stated purpose and builds confidence

• Shows the charity is being organised and managed properly and is worthy of support

• Demonstrates the charity is carrying out its activities efficiently and effectively and is benefiting the public

• Attracts new resources to enable the charity to continue its activities and hence encourages philanthropy and continuing support

Trustees’ reports

Contents:

• Reference and administrative details

• Structure, governance and management

• Objectives and activities

• Achievements and performance

• Financial review

• Plans for future periods

Trustees’ reports

Structure, governance and management

• Nature of governing document & how charity is constituted

• Methods of recruiting and appointing new trustees

• Induction & training of trustees

• Organisational structure & how decisions are made by trustees and/or staff

• Relationships between charity and other charities/organisations with which it co-operates

• Statement re risk management

SCIE’s board of trusteesNew trustees are elected by existing trustees (the Secretary of State for Health being entitled to nominate three trustees, the Welsh Assembly Government one trustee and the Department of Health, Social Services and Public Safety in Northern Ireland one trustee) and serve for a term of three years before retiring from office. Retiring trustees can be nominated to serve a second consecutive term provided that no trustee serves more than two consecutive terms of office, except with the unanimous support of all the other trustees. Constant regard is paid to the skills mix of the trustees to ensure that they have all the necessary skills required to contribute fully to the charity’s development.

On agreeing to become a trustee of the charity, the trustees are thoroughly briefed by their co-trustees on the history of the charity, the day-to-day management, the responsibilities of the trustees, the current objectives and future plans. The trustees are also encouraged to attend any courses which they feel are relevant to the development of their role, and to keep up-to-date on any changes in legislation.

Extract from the trustees’ report of Social Care Institute for Excellence 2007/08

Governance

In terms of Canon law, the Congregation is governed at an international level by the Superior General and his General Council in Rome. They are elected every six years at a General Chapter or meeting of representatives of all provinces of the Congregation.

The person responsible for the leadership of the British Province in fulfilment of its mission is the Provincial, helped by his Council. Each Provincial serves a six year term in office. The Provincial Council has five members who are appointed by the General Council in Rome after consultation with the members of the Province. Members of the Provincial Council are chosen for their personal qualities, their understanding and experience of the ministries of the confreres throughout Great Britain and to secure a good skills mix among them.

In terms of Civil law, the charity is governed by a scheme of the Charity Commissioners dated 1 August 2003 (which replaced the trust deed of 7 March 1964) and is a registered charity – Charity Registration No. 233779. The trustees of the charity are the Provincial and the five members of the Provincial Council. As all trustees are members of the Congregation they have a detailed knowledge of the work of the charity and of its structure. The training of the Provincial Council in their role as trustees is facilitated by the Provincial Economer who uses the material provided by the Charity Commission, major conferences, the Association of Provincial Bursars and the literature available from major firms of solicitors and accountants specialising in charity practice and procedures.

The names of the trustees who served during the year are set out as part of the reference and administrative details on page 1 of this annual report and accounts and brief biographical details of each of the trustees is given below.

Extract from the Salesians of Don Bosco 2007

Trustee Induction and TrainingAs part of its review of trustee recruitment and induction, the board revised its programme of trustee induction and training in 2005/06. Upon appointment to the board, trustees receive a Wandsworth Women’s Aid trustee induction pack that contains the following documentation:

The charity’s Memorandum and Articles of AssociationRules of Wandsworth Women’s AidWandsworth Women’s Aid Trustee Code of Practice and Trustee AgreementJob descriptions of Wandsworth Women’s Aid Chair, Secretary and TreasurerCharity Commission booklet: “The Essential Trustee”Minutes from the last three Wandsworth Women’s Aid board meetingsContacts list for Wandsworth Women’s Aid

In addition to the Trustee Induction pack, we also offer new trustees a one to one meeting with Director to discuss the operations and issues affecting Wandsworth Women’s Aid, a tour of one of the refuges, training on domestic violence issues with one of the staff members and training on Trustee issues. Going forward, we hope to offer training on trustee issues to all members of the board on an annual ‘refresher’ basis.

Extract from Wandsworth Women’s Aid annual report 2007/08

Trustees’ reports

Structure, governance and management

• Nature of governing document & how charity is constituted

• Methods of recruiting and appointing new trustees

• Induction & training of trustees

• Organisational structure & how decisions are made by trustees and/or staff

• Relationships between charity and other charities/organisations with which it co-operates

• Statement re risk management

Working with other organisations Age Concern Waltham Forest is committed to collaborative working in furtherance of its aims.

At a local level, Age Concern Waltham Forest works closely with Waltham Forest Council and the Waltham Forest Older People’s Services both formally and informally in representing the needs and views of older adults, in the development of policy and in monitoring its implementation.

Age Concern Waltham Forest also works in partnership with Whipps Cross University Hospital Trust, Waltham Forest Primary Care Trust and the North East London Mental Health Trust on a number of initiatives to improve the experience of older adults in such areas as gaining access to information, case finding, discharge planning and the eradication of age discrimination.

Age Concern Waltham Forest administers the Waltham Forest Older Peoples Voluntary Sector Partnership which is a network of over 80 local voluntary groups that work together to provide a single point of access to the older peoples voluntary sector, to campaign for the rights of older adults and to fight ageism, racism and other forms of discrimination wherever they are found.

Age Concern Waltham Forest also works with a wide variety of organisations on initiatives such as the Waltham Forest Healthy Ageing Programme, the Waltham Forest Older People’s Safety Campaign and income maximisation.

Extract from Age Concern Waltham Forest annual report 2006/07

Trustees’ reports

Structure, governance and management

• Nature of governing document & how charity is constituted

• Methods of recruiting and appointing new trustees

• Induction & training of trustees

• Organisational structure & how decisions are made by trustees and/or staff

• Relationships between charity and other charities/organisations with which it co-operates

• Statement re risk management

Risk managementIn line with the requirement for trustees to undertake a risk assessment exercise and report on the same in their annual report, the

trustees have looked at the risks the charity currently faces in Britain and have reviewed the measures already in place, or needing to be put in place, to deal with them. The trustees have identified five main areas where risks may occur:

-Governance and management-Operational-Financial-Reputation-Laws, regulation, external and environment

Governance and management looks at the risk of the Congregation, and hence the charity, suffering from a lack of direction, at the skills and training of its members and staff, and the good use of its resources.

Operational looks at the risks inherent in the charity’s activities including the operation of its two care establishments and one hostel – the members engaging in inappropriate activities, the unsuitability of buildings, poor maintenance, shortcomings in the service provided, difficulties with staff, poor health and safety, lack of a disaster recovery policy, etc.

Financial risks include those arising as a result of poor budgetary control, inappropriate spending, poor accounting, inappropriate investment policies, etc.

Reputation looks at possible damage to the Congregation and/or the charity’s reputation.

Laws’ regulations, external and environment look at the effect of government policies, the consequences of non-compliance with laws and regulations and poor risk assessment in the charity’s care establishments.

Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.

Extract from the Sisters of St Vincent de Paul Charitable Trust 2007

Trustees’ reports

• Objectives, strategies & activities:

– Summary of objects and explanation

of Charity’s aims: Childcare

Education

Nursing

Social & pastoral work

Overseas work

– Objectives for year

– Strategies

– Significant activities:

Nurseries, toddler groups

Teaching & schools

Homes, hospitals, etc

Parish work, hostels, voluntary work, etc

Grant making

• Grant making policy

• Investment policy generally

• Volunteers:

– Activities

– Hours

• Property

The RSPCA's vision is to work for a world in which all humans respect and live in harmony with all other members of the animal kingdom.

Our mission statementThe RSPCA as a charity will, by all lawful means, prevent cruelty, promote kindness to and alleviate suffering of animals.

The RSPCA intends to achieve its mission by:

•effecting strong branch, regional, national and international organisations dedicated to providing a public service, delivering effective relief of animal suffering and enforcing the law

•working tirelessly to reduce the harmful impact of human activities on animals through education, campaigning and the application of ethics, science and law

•striving for the highest levels of efficiency, effectiveness and integrity

•urging that, save where the public benefit requires, humankind should not intentionally cause suffering to any animal when it is not for its own benefit, or cause suffering by neglect. This applies whatever the animal, or the situation in which it finds itself.

Extract from the 2006 report of the RSPCA

Principal aims, objects and activitiesThe charity exists to promote the charitable works carried out by, or supported by, the monks and which are conducive to the advancement or maintenance of the Roman Catholic religion. These fall into three main areas:

EducationSchoolThe monastery operates a Senior and Junior School, providing education for over 830 boys (and girls in the 6th form and nursery) between the ages of 3 and 18. The Junior School admits children who have been baptised Roman Catholic, but it also has a limited number of places for other baptised Christians. The Senior School admits baptised Roman Catholics as well as boys of other Christian denominations and other faiths. Although the direction of the school remains in the hands of the Abbot and Community, there is a lay Advisory Governing Body and a teaching staff of over 70 members, plus ancillary and part-time staff, working for the academic, religious and social growth of the pupils.

Adult EducationThe Trust provides adult education through parish lectures and the Benedictine Study & Arts Centre (BSAC) which is on-site. Students and volunteers share in aspects of monastic life by both partaking in courses of study and by learning to understand the monastic tradition of hospitality, fidelity and a life centred on community, reflection and prayer.

Parish workThe abbey church serves also as parish church and 3 of the monks are occupied in ministering directly to the needs of some 6,000 parishioners. In addition to spiritual support, there are many initiatives to promote the material and social well-being of all age groups. Again, there are a number of lay employees and many volunteers involved in these areas.

CounsellingEaling Abbey Counselling Service (EACS) is currently the largest counselling and psychotherapy provider in London and the South East. It has in the region of 85 practitioners, runs 23 supervision groups a month and provides over 250 client hours a week.

Other worksIndividual members of the monastic community are also involved in scholarly writing for publication, retreat work, giving spiritual advice and lecturing. The monks take part in local ecumenical and social initiatives. The Community includes a number of retired members and 2 who are in training.

The Trust of St Benedict’s Abbey, Ealing 2007

Many of our elderly sisters do voluntary work, pastoral visiting in their local areas. This includes:

sharing a cup of tea with someone,

taking Communion to the sick parishioners,

or just popping in for a chat.

The English Province of the Congregation of Our Lady ofCharity of the Good Shepherd(of Angers), Charitable Trust 2005

Coram Family 2005/06

Volunteers

The trustees are extremely grateful to the volunteers who have given their time during the year and without whose contribution the charity would not be able to function as effectively or fully as it does. Details of the areas in which volunteers assisted are shown in the table opposite, together with an indicative value of the salary that would have been payable to paid workers carrying out the same work.

19

12

3

4

No. ofvolunteers

£12,800Total

£7,5001,500Dog walkers

£1,800300Administration

£3,500520Fundraising

Approx.value

£Hours

volunteeredArea

Trustees’ reports

• Review of achievements against objectives:– Qualitative– Quantitative– Indicators, milestones and benchmarks against which

achievement of objectives are accessed

• Fundraising activities:– Performance v objectives– Expenditure for future income generation– Effect on current fundraising return & future income

• Investment policy and performance

Caring for members of the Congregation

The personal statistics for the Community reflects those of society in general with a large proportion of the sisters being elderly, retired, living longer and enjoying a better quality of life. About 51% of the sisters are in the 60-80 age bracket, retired but active in caring and pastoral ministry, in voluntary organisations and institutions and within their local parishes. Several of the sisters in this age bracket, using the wisdom and experience of their years, hold administrative and responsible posts within the central administration.

The age profile of the Congregation in Great Britain is shown graphically below:

Sisters of Charity of St Vincent de Paul Charitable Trust 2007

Age profile at 31 December 2007

0

10

20

30

40

50

60

70

40 to 50 51 to 60 61 to 70 71 to 80 81 to 90 Over 90

Nu

mb

er

of

Sis

ters

CASE STUDY

Mary lived with her parents until she was 18 but suffered long-term abuse from her alcoholic parents in a dreadful home environment. After one particularly violent beating from her father, Mary swallowed a cocktail of pills and alcohol. She survived, but when she got better could not return home. Mary found a flat, but without family, and with only a few friends, she was unable to cope and had to leave because of rent arrears and she was referred by Social Services to one of ECHG’s projects. Once in the hostel she began to see a counsellor and with the support of a psychiatrist and a community alcohol team worker began to control her drinking and receive treatment for her depression. She started voluntary work at a local day centre and signed up with an outdoor activities organisation, to qualify in fitness instruction and outdoor pursuits.

The resettlement worker helped Mary prepare for living on her own again by working with her on practical skills like shopping, budgeting, cooking, and other problems of living on your own, and, when everyone was confident that Mary was ready, she finally moved into her own flat. Church Housing Trust provided a grant to enable her to purchase the items she needed to turn a bare flat into a home – a cooker, fridge, bedding, some curtains and basic kitchen essentials.

Mary is happy in her new flat and is grateful to Church Housing Trust for providing the essentials she needed to help her in her first months of independence.

Extract from the annual report of Church Housing Trust 2005/06

ACHIEVEMENTS AND PERFORMANCE (CONTINUED)

Review of activities (continued)

Hospitality and pastoral careThroughout the year sisters continued to carry out these ministries with the ‘behind the scenes’ support of the whole community.Retreat weekends

The retreat programme continues to interest; of particular popularity are those events which focus on our Benedictine spirituality and those concerned with deepening inter-faith relations. Retreatants comment:

“I brought so much away with me [from the retreat] that I shall be fed for a very long time and it has given me much to reflect on”.

“I just wanted to thank you again for a very special weekend. It was so good to return to Turvey Abbey in any case, and I realise that ever since my previous visit it has continued to somehow hold me in its beam – a bit like a lighthouse does to a sailor…”

“I have really valued the space and time for reflection”.

“It was refreshing to be with you all in such a prayerful atmosphere……thank you for your life of prayer and praise.”

Olivetan Benedictine Sisters Turvey Abbey Charitable Trust 2006

Extract from Marie Curie Cancer Care accounts 2004/05

Trustees’ reports

Financial review

• Comment on results for year

• Financial position at end of year

• Reserves policy

• Principal funding sources including any borrowings

• Funds in deficit (including FRS 17 pension fund)

• Investment policy

Extract from the annual report for Social Care Institute for Excellence 2007/08

Where we got our money from

Department of Health

87%

Welsh Assembly

Government 3%

Scottish Executive 1%

DHSSPS Northern

Ireland 2%

IMC Information 1%

Other Grants 1%

Other income 5%

Reserves

The trustees’ annual report should explain the charity’s:

• Policy on reserves stating the level of reserves held and why they are held. Where material funds have been designated, the reserves policy statement should quantify and explain the purpose of the designations and, where set aside for future expenditure, the likely timing of that expenditure.

(SORP 2005 para 55(a))

ReservesTotal funds at the end of 2007 stood at£154.2 million (£108.5 million at the end of 2006).The increase incorporates a reduction of thepension deficit from £57.6 million to £21.9 million– an improvement of £35.7 million (see Note 17).Net free reserves at the end of 2007 amounted to£122.4 million (£79.7 million at the end of 2006).Guide Dogs has a long term commitment toeach guide dog owner. The average working lifeof a guide dog is six and a half years, and clientsmay require up to eight dogs during their lifetime.The maintenance expenditure on buildings andsupporting infrastructure is fixed in the mediumterm and, together with the training requirements,this results in the necessity for a long term costplanning horizon. Furthermore, the charity’sincome is derived primarily from voluntarygiving, particularly legacies, which may fluctuatesignificantly.In order to mitigate the risk to the provision of thislong term commitment to each guide dog owner,the Council has concluded that the free reservesshould be maintained at a level of the equivalentof at least two years’ running costs of the coreguide dog service. This target continues to beachieved.

Extract from The Guide Dogs forthe Blind Association 2007

Trustees’ reports

• Future plans and targets [Don’t create a rod for your own back!]

Future Plans

The specific objectives of the Trust in 2007/08 are as follows:

• To implement the guiding principles of the strategic plan.• To continue to fund and support all existing projects and monitor progress.• To continue to maintain close personal links with each major project and visit them as

appropriate.• To continue to generate donations from all our existing supporters and to make

strenuous efforts to attract new donors.• To continue to develop the contribution of the trustees through the work of the

committees.• To identify four new partner organisations.• To continue to liaise with our partner organisations and identify potential new projects

for IRT to support.• To increase the income generation activity among Trusts and in the commercial sector.• To recruit at least one new member of the Board to replace Hugh Caldin.

Extract from the annual report of International Refugee Trust 2006/07

A 12 point plan

1. Organisation & decision making structure including trustees

2. Objects – what do they mean?

3. Activities & how they relate to the objects

4. Confirm objects still appropriate

5. Chief Executive & senior management team – include biographical details (?)

6. Aid comparison

1. Volunteer support & employee information

2. Fundraising – now & future

3. Comment on major assets including property

4. Review of the year

5. Financial review – results, financial position & reserves policy

6. Look ahead – future plans and key targets

Above all:

• Clear• Simple• User-friendly• Interesting

• Blow your own