(a charitable company limited by guarantee)
Registered Charity No. 1054914
Company Number 3182826
Company law requires the Board of Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company and of the income and expenditure of the company for that year. In preparing these financial statements, the Board of Trustees has:
The Board of Trustees is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees have confirmed that so far as they are aware, there is no relevant audit information of which the charitable company's auditors are unaware, and that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.
The Trustees have examined CFDG’s requirements for free reserves in the light of the predominant risks to the organisation. These are identified as loss of reputation, causing falling membership income, and loss of corporate support. They have set a target of between 25% and 35% of annual unrestricted charitable income (budgeted income for 2006/07 is £805,024; therefore the target is £201,000 to £282,000). The Free reserves are needed to meet the working capital requirements of CFDG and to allow for the development of new initiatives (where we would incur significant expenditure in advance of anticipated income) and to provide a buffer against a significant drop in funding. Total free reserves at 31 March 2006 were £241,298 (2005: £150,452), which is 31% of unrestricted charitable income for 2005/6. For 2006/7 the Trustees have agreed a balanced budget and so the level of reserves is expected to remain at £241,000, which will be about 30% of unrestricted income.
Page 13 - Annual Report and Financial Statements 2006