Annual Report and Financial Statements 2022-2023 - Flipbook - Page 15
We have made significant progress in documenting the
‘as-is’ business processes under phase 1 of this work,
which includes payroll, finance, people, and community
groups. This documentation is a crucial step towards
optimising our operations and achieving our 2025 target
of documenting all processes.
Going Concern
TCV has a pipeline of opportunities to support our
income aspirations for 2023-24 and whilst the external
environment for funding is more challenging, the variety
of opportunities demonstrates how we are adapting
to this changing economic situation and puts us in a
strong place to meet/overcome them. TCV continues
to maintain strong partnerships with local and national
organisations, which have provided financial resilience to
the charity and are expected to do so into the future.
Team has risk as a standing agenda item and the Audit
and Risk Committee (ARC) reviews the underlying
management of risk within the organisation and
the work of the Risk and Compliance Manager in
monitoring performance and compliance. It then
brings this to the attention of the Board on a quarterly
basis. Risk management is embedded within the
organisation to assess risk effectively and put
appropriate controls and actions in place to mitigate
risks to acceptable levels.
To avoid breaching the Board’s risk appetite limits,
strategic risks are given a quantified threshold and
mitigating actions. Performance against these
thresholds is monitored monthly by management. On
an annual basis, the ARC provides the Board of Trustees
with a summary review of risk management issues for it
to consider.
The trustees have reviewed forecasts to 31 March 2025
and based on those forecasts believe that the Charity
will be able to meet its liabilities as they fall due. These
forecasts have been prepared having regard to risks
and sensitivities to anticipated financial performance, a
review of actual performance compared to previous
forecasts and consideration of financing facilities
available. Mitigating actions available in the event of
adverse circumstances or financial performance have
also been considered.
Strategic risk register oversight by the Board of Trustees
during 2022-23 focused on the following additional risk
areas, with matters arising reported by exception for
each area of risk below:
The non-recurrent fall in cash holdings, and plans to
return cash balances to more normal levels is referenced
in the Statement of financial activity on page 11. The
planned disposal of Balallan House, Stirling in 2023 is
also expected to significantly increase cash holdings and
available unrestricted reserves.
The charity continued to closely track the conversion
of unsecured income and related income pipelines to
inform income and outturn forecasts for the year, with
significant income growth achieved in the year.
The charity has put in place an overdraft facility to
manage the impact of the non-recurrent fall in cash
holdings.
Based on the information currently available in respect
of the future, the trustees consider that the charity has
the plans and resources to manage its business risks
successfully. The trustees have therefore prepared these
financial statements on the going concern basis and
believe that there are no material uncertainties over the
ability of the charity to continue as a going concern.
Principal risks and uncertainties
The trustees have overall responsibility for ensuring
that the Charity has appropriate systems of control for
managing risk within the organisation.
TCV’s risk management process is designed to ensure
that appropriate steps are taken to identify and mitigate
risk and to provide reasonable assurance against
material misstatement or loss. TCV aims to identify the
major risks to the organisation, ranking them based on
both likelihood and impact. Major risks are considered
when setting operational and strategic objectives and
when approving significant grants and contracts.
The risk management process is managed throughout
the business, with standards set and monitored by
the Risk and Compliance Manager. The Leadership
Financial Risk: including achievement of our financial
plan, and being a resilient organisation
The 2022-23 strategic risk register tracked financial risk
in relation to targets for income, net contribution to
reserves and the cash position.
Net investment in income generation and backdated
employer pension contributions towards the end of the
financial year were significant factors in the final net
expenditure from reserves for 2022-23.
The Board and ARC Chairs provided oversight of the
mitigation of a constrained cash position in the latter
stages of the year, arising from delays in invoicing charity
funders and partners for charitable work carried out.
Operations and people: be a great place to work
The risk objective for operations and people in 2022-23
was to ensure that the charity was a great place to
work, with people and volunteer measures used to track
progress, including survey results, employee turnover
and organisational competence.
In order to address the indications that TCV pay had
become uncompetitive in comparison with pay at
comparable organisations, the charity developed
a reward and recognition strategy in the year. This
strategy includes a central guiding principle that the
charity should pay its employees at least at the median
level as benchmarked with equivalent organisations,
subject to affordability in the short term, and
organisational sustainability.
Recruitment challenges continued in 2022-23 in common
with other employers in the third sector, and beyond,
with resultant vacancy periods for roles, and in some
cases the loss of charitable income and expenditure.
TCV Annual Report and Financial Statements 2022-2315
