ARC minutes 2024-03-29

ARC meeting minutes | Thursday 29th February, 5 pm - 7 pm [online]

Welcome and apologies

Present: Adrian Beidas (AB), Mark Cruickshank (MC), Lucy Crompton-Reid (LCR), Natasha Iles (NI), Sharon Mitcheson (SM), Alex Ashby (AA), Daria Cybulska (DC), Julian Akoyode Manieson (JAM), Chuks Ogbonna (CO) (minuting).

Approval of previous minutes

The minutes were approved as read.

Update on actions arising at the last meeting

The report on net savings from the office move will be provided at the board meeting

QFMR Q4 2023-24 and Commentary

Based on the report presented by SM, there was a surplus of over £21k. Cash deposits stand at £911k at the end of the quarter while accrued income includes the final instalment from the ECF and has just been paid into our bank in February.

Looking at the Balance Sheet (tab 2), Unrestricted Reserves at Q4 end is £358k, showing a net increase of unrestricted of £6k (plus £15k used for the designated fund for the CRM), the remaining designated fund is for partnership programs. SM pointed out that there are now notes underneath the balance sheet to give explanations to any unusual balances.  In particular, she pointed out the Gift Aid Debtor which is the same as the start of the year. With further investigation, it was discovered this is relating to April-June in 2022.  CO is investigating this with HMRC.  Prepayments are made up of final CRM payments, as well as insurance and recruitment fees relating to the position of the new Head of Development and Communications.  Additionally, SM is asking the Auditors to look into the Accruals as if these expenses were accrued and invoices were never received for them, it would affect the bottom line. Restricted Reserves carried into 24/25 include Meliore Fund for Climate Residency, Wikimedia Foundation Grant for ’Changemakers toolbox’ partnership project, and Wikimedia Foundation Grant for the Volunteer Support Network.

Looking at the Budget vs Actuals (tab 6) of the QFMR spreadsheet. SM referred to tab 4 Restricted Funds Tracker where there is a summary of where we are with Restricted Funds - she emphasised that only rows 2-14 are relevant at this stage in the year. We over-achieved on Donations and Gift Aid for the year. Expenses show that Partnership and Volunteer Support have been fully spent down and there is an increase in Staff Costs (which is in line with additional restricted income received). AB wanted clarity on the reforecasts vs budgeted items, especially in relation with partnership programmes and Volunteer support as it doesn’t align with the Variance.  SM explained that it is in line with what we reforecasted halfway through the year and agreed that it’s confusing when comparing it to the original budget and not the forecast.  SM explained that this is how Marnie (the previous Treasurer) wanted to show the comparison but is open to other options. Ideally, we’d show a comparison against the forecasted budget from when it’s done halfway through the year.  AA suggested that we keep the original budget in as well and SM suggested that she can add both but do the Variance against the forecast but keep the original budget in (and hidden) for reference only.

ACTION: Update on the Accruals in the next ARC meeting

ACTION: SM to look at the forecast template and restructure the presentation

Fundraising and Development Report (NI)

NI presented the report, highlighting a positive income picture during the year, we have slowed the decline in regular giving people leaving. With the expenditure on storytelling, we will receive feedback on the 11th of March and are hopeful that we can start using this immediately for fundraising potential. Small donations are also very good, she talked about gift aid and the positive impact of having received amounts from previous years. We underachieved in Major gifts during the quarter but NI has done a course in Major Gifts and has put plans in place for the 24/25 financial year which we haven’t had in place before. She also reported a notification of a legacy.

• AB asked about the reported Bitcoin legacy donation we received a while ago and NI reported that it’s still being awaited
• AA asked about the high level of identified Trusts and Foundations and NI answered that this is identified and necessary as there is circa 1 in 10 average success rate for applications.

Risks Register (LCR)

LCR gave the report, talking about the relationship with the WMF, saying there could be some restructuring in the grant management. The WMF is looking at reduced income making which may affect us as an organisation. Inadequate systems for knowledge management are still high. There’s been a new risk included which is possible ‘litigation by employees’.

• MC asked if there have been any recommendations from the HR consultant who was recently engaged on staff contracts and LCR responded that there are discussions ongoing about that. SM added that she showed the HR consultant

Reserves Policy (SM)

SM gave the report, and reported that it has been updated with the figures of this year, she also said that we will be sharing it with the auditors. SM asked for members to approve the reserve policy and range.

• AA asked that while he agrees with the policy, the scenario planning should be discussed

DECISION: Policy approved by the Committee.

AOB

Nil

The meeting ended at 6:25 PM

Next meeting dates in 2024 (all 5 - 7 pm)

• Thursday 30th May
• Thursday 5th September
• Thursday 28th November