Income and Expenditure
FSC UK's income and expenditure for 2015-2016 is shown below.
Our Charity Commission record (we are registered charity number 1130203), available here, gives further information, including financial statements.
Over the financial year under review income has exceeded expenditure by £133,617. We began the year with an opening balance from the previous period of £400,884 and have ended with a carry forward of £534,501. It should be noted that this carry forward figure includes the increased reserves fund of £175,155.
Membership revenue continues to increase, providing £40,460 of income during the reporting period. However, the most significant increase was in the income received under the Activity Compensation Fee (ACF). This is currently calculated on a formula which is primarily based on the Annual Accreditation Fee (AAF) charged to certified companies in the UK. The increased income from the AAF comes with additional delivery expectations and it is anticipated that expenditure will rise as the charity seeks to meet these expectations.
Whilst expenditure was higher this year compared with last (£291,375 compared with £282,824) it was lower than predicted due to staff vacancies within the business team for most of the reporting period.
Increased staff costs and overall expenditure are predicted in 16/17 as we seek to meet the charity’s increased commitments.
* Expenditure is now categorised as per the UK Strategic Priorities.
A policy had previously been established whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be equivalent to 3 months’ of expenditure. However, it was agreed in October 2015 that this policy should be extended to 6 months’ of expenditure. At the end of the reporting period over £175K was held in reserve.
The reserves are needed to meet the working capital requirements of the charity and, in the worst-case scenario, to cover the cost of closing the charity. The Steering Group is confident that, at the equivalent to 6 months’ expenditure, the charity would be able to continue at worthwhile activity levels in the event of a temporary significant drop in funding.
The trustees have subsequently declared that they wish to ensure that the estimated cost of closing the charity not exceed 50% of reserves.
FSC UK would like to thank all those who have supported our work over the last financial year, and indeed the past 20 years.
Special thanks this year go to Sainsbury’s and WWF UK.