The Charity ensures that it has the relevant volunteer trustee skills to apply good governance in a regulated charity, and has a well-defined system of internal controls and risk management procedures in place that are proportionate to the risks inherent in the work. Key to this is trustees having sufficient time and support to manage their portfolios and for there to be adequate succession planning in place. Key Risks Risk Area Mitigating Actions i Children mistreated in projects: Country-appropriate Child Protection policy in Due to a lack of child protection place ii Funding decline: Due to a Actively market to raise profile (see Section 6) reducing funding base, donor project fatigue and growing demands on donors’ discretionary income. iii Cost increases in long term Limiting annual operational of long term projects: Operational costs due to complex projects to 75% of estimated annual local inflation or exchange rate funding income (excluding major donations over movements rise faster than £30k) our golden rule – funding income and threaten Make funding decisions early financial viability. Close ineffective projects iv Funding is not spent effectively or Set strict budgets and obtain regular feedback is misappropriated: Lack of Visit and review projects in country; audits strength of local project boards leads to project issues and misused funds. V Non-compliance with regulation: Close scrutiny by Trustees Leading to reputational damage Specialist Compliance Trustee with overall and penalties. responsibility Independent external auditors Financial Viability The charity seeks to carefully manage financial viability by holding just sufficient cash and reserves to meet the needs of its long term projects. Our five year track record (below) shows that: Income is variable due to one off donations and legacies Expenditure is affected by foreign exchange rates and high overseas inflation Cash balances (£800,000) have increased and are now 126% of expenditure Expenditure has been carefully managed so that our cash balances have steadily improved to around 90% - 100% of expenditure. Due to the movement of foreign exchange rates in 2015, the year closed with higher than normal cash levels which will be brought down to 100% of expenditure in 2016.
The Charity ensures that it has the relevant volunteer trustee skills to apply good governance in a regulated charity, and has a well-defined system of internal controls and risk management procedures in place that are proportionate to the risks inherent in the work. Key to this is trustees having sufficient time and support to manage their portfolios and for there to be adequate succession planning in place. Key Risks Risk Area Mitigating Actions i Children mistreated in projects: Due to a lack of child protection Country-appropriate Child Protection policy in place ii Funding decline: Due to a reducing funding base, donor project fatigue and growing demands on donors’ discretionary income. Actively market to raise profile (see Section 6) iii Cost increases in long term projects: Operational costs due to local inflation or exchange rate movements rise faster than funding income and threaten financial viability. Limiting annual operational of long term complex projects to 75% of estimated annual funding income (excluding major donations over £30k) – our golden rule Make funding decisions early Close ineffective projects iv Funding is not spent effectively or is misappropriated: Lack of strength of local project boards leads to project issues and misused funds. Set strict budgets and obtain regular feedback Visit and review projects in country; audits V Non-compliance with regulation: Leading to reputational damage and penalties. Close scrutiny by Trustees Specialist Compliance Trustee with overall responsibility Independent external auditors Financial Viability The charity seeks to carefully manage financial viability by holding just sufficient cash and reserves to meet the needs of its long term projects. Our five year track record (below) shows that: Income is variable due to one off donations and legacies Expenditure is affected by foreign exchange rates and high overseas inflation Cash balances (£800,000) have increased and are now 126% of expenditure Expenditure has been carefully managed so that our cash balances have steadily improved to around 90% - 100% of expenditure. Due to the movement of foreign exchange rates in 2015, the year closed with higher than normal cash levels which will be brought down to 100% of expenditure in 2016.
CMAD-Business-Plan-Final-11-16.docx