Charity Finance Director's Group

(a charitable company limited by guarantee)

Annual Report and Financial Statements

Registered Charity No. 1054914
Company Number 3182826

Notes to the financial statements
^{For the year ended 31 March 2007}

9 Analysis of assets between funds

The Restricted CRN Project was established in 2000 by a grant from the Community Fund to develop the Charities Resource Network. This project was complete during 2004 and the closing balance represents the net book value of the membership database which is being depreciated over four years from the date it went live in June 2003.

10 Pensions Trust Growth Plan - Pensions Obligations

CFDG participates in the Pensions Trust’s Growth Plan, is a multi-employer pension Plan which is in most respects a money purchase arrangement but it has some guarantees. It is not possible in the normal course of events to identify the share of underlying assets and liabilities belonging to individual participating employers. Accordingly, due to the nature of the Plan, the accounting charge for the period under FRS17 represents the employer contributions payable.

The last formal valuation of the Plan was performed at 30 September 2005 by a professionally qualified actuary. The valuation revealed that the assets of the Plan fell short of the accrued liabilities as at the valuation date equivalent to a past service funding level of 96%. The Actuary has not recommended an increase to employer contributions (these contributions vary according to the percentage paid by the employee up to a maximum of 10%) and the charity is not aware of any plans to change the future employer contribution rates.

Following a change in legislation in September 2005, there is a potential debt on the employer that could be levied by the Trustee of the Plan. The Trustee’s current policy is that it only applies to employers with pre October 2001 liabilities in the Plan. The debt is due in the event of the employer ceasing to participate in the Plan or the Plan winding up. The debt for the Plan as a whole is calculated by comparing the liabilities for the Plan (calculated on a buyout basis i.e. the cost of security benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Plan. If the liabilities exceed assets there is a buy-out debt.

The leaving employer’s share of the buy-out debt is the proportion of the Plan’s pre October 2001 liability attributable to employment with the leaving employer compared to the total amount of the Plan’s pre October 2001 liabilities (relating to employment with all the currently participating employers). The leaving employer’s debt therefore includes a share of any ‘orphan’ liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Plan liabilities, Plan investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.

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