I feel I should note that these accounts are still subject to audit and *are not final*. It's important to remember that because they may change as we go through our back-and-forth with the auditors about how best to account for things.
Richard Symonds Wikimedia UK 0207 065 0992 Wikimedia UK is a Company Limited by Guarantee registered in England and Wales, Registered No. 6741827. Registered Charity No.1144513. Registered Office 4th Floor, Development House, 56-64 Leonard Street, London EC2A 4LT. United Kingdom. Wikimedia UK is the UK chapter of a global Wikimedia movement. The Wikimedia projects are run by the Wikimedia Foundation (who operate Wikipedia, amongst other projects). *Wikimedia UK is an independent non-profit charity with no legal control over Wikipedia nor responsibility for its contents.* On 24 March 2015 at 14:06, Thomas Morton <[email protected]> wrote: > It strikes me that the only non programme overspend is related to Jon > leaving. Given the troublesome financial state, and the boards fiduciary > duty, perhaps they need to explain in detail why this happened and why no > effort was made to defer it to the next financial year when it could have > been accounted for? > > Tom > On 24 Mar 2015 13:15, "Michael Maggs" <[email protected]> wrote: > >> >> >> *Draft annual accounts for the 2014-15 financial year *Today we are >> releasing our draft annual accounts for the 2014-15 financial year, ending >> 31st January 2015 [1]. The contents of these accounts have been a matter >> of significant concern for the Board, and we are making this statement to >> provide some context and to set out the steps we have taken. >> >> In December 2013 the board approved a budget for 2014-15 based on >> expected income of £623,000. Net income over the period was in line with >> expectations but expenditure on Wikimania and other projects was not well >> controlled during the latter part of last year, and we are facing a >> projected deficit of £192,000 as against our original budgeted deficit >> of £32,000. >> >> While Wikimania 2014 was an international success, for which volunteers, >> the Wikimedia Foundation and Wikimedia UK can all take some credit, the >> experience was challenging for us as the local chapter. Although we were >> not running the conference, we were providing significant staff and >> logistical support, and we did so too enthusiastically given that not all >> of our expenses were recoverable. Overall, and after allowing for a one-off >> Foundation grant of £65,000 to cover our international support, we >> overspent by around £45,000. >> >> Our Wikimedians in Residence programme gained real traction over the year >> with demand significantly outstripping available funds, resulting in an >> overspend of £49,000. Much of this arose from agreements made with several >> high-profile organisations late last year which could not have been >> deferred without significant reputational damage to the charity. The board >> had hoped that these costs could have been delayed until February, when >> they would have fallen into the 2015-16 financial year, but have been >> advised that that is not possible. >> >> There were smaller overspends on a variety of other project areas as well. >> >> Finally, we had an off-budget net expense of £57,000 during the year, >> representing the Chief Executive transition. >> >> These disappointing overspends in 2014-15 have left us with reserves of >> only £165,000, which is below the £200,000 level that the board considers >> to be the acceptable minimum for a charity of our size. >> >> >> *Action to restore stability* >> >> Immediately that the charity's overspends became clear, shortly before >> the December 2014 board meeting, the interim CEO, supported by the board, >> introduced a moratorium on further non-essential expenditure until a >> 2015-16 budget could be prepared. In order to allow time for the interim >> CEO to review activity the second volunteer strategy day as well as a >> number of other projected programme activities were postponed. >> >> >> *Draft budget and plans for 2015-16* >> >> We are also today releasing our draft budget for 2015-16 [2]. This is >> subject to amendment, particularly on staff costs. >> >> The funds we have available to spend on charitable programmes will be >> significantly lower than in 2014-15. There are three main factors: >> >> - >> >> To ensure charity stability it is crucial that we increase our >> reserves to the minimum level of around £200,000. The board has set a core >> budget for this year which is break-even or better. >> - >> >> Our grant from the Wikimedia Foundation has been reduced from £353,000 >> to £314,000. >> - >> >> For the moment at least the board does not consider it prudent to set >> a budget that assumes in advance that the charity will be able to obtain >> significant project-based or corporate funding, nor that direct debit >> income can be rapidly increased. >> >> The combined effect of these factors is that the board has to take >> decisive and fairly radical action to ensure that we can work effectively >> within our smaller core budget of £570,000 (a full £242,000 below the >> amount indicated as WMUK's projected budget in the FDC bid of October >> 2014). >> >> To ensure greater clarity and transparency for the future, as well as >> better alignment with our strategic goals, our 2015-16 budget will be >> split into a variety of categories, of which the first three ('contracted', >> 'necessary' and 'should') cover limited core activities that can be >> supported within the resources (funds, staff, volunteers etc) we are almost >> certain to have available. The remaining two categories ('like to' and >> 'icing') cover activities that we can support only to the extent we can >> expand our resource base, either by specific project-based or general >> fundraising, >> or by building active volunteer engagement. >> >> Our aim with this project-based approach is to encourage community >> involvement with decisions on what we should do and not do, based on an >> assessment of which potential projects are best aligned with our strategic >> goals. A large part of the assessment must be to decide which projects are >> capable of generating sufficient active volunteer support (and fundability >> if funds are needed), and then selecting based on those giving the >> greatest charitable impact for the resources required. >> >> We will need some new community mechanisms to embed volunteer inputs into >> all of this, and we will be discussing widely, including further >> discussions at the rescheduled second volunteer strategy day on Saturday 25 >> th July. >> >> >> *WMUK organisational structure* >> >> In their comments of November last year the Funds Dissemination >> Committee (FDC) said: >> >> “*While the FDC understands that reducing Wikimedia UK’s funding might >> be a strain on the organization, the FDC hopes it will lead to a productive >> re-evaluation of priorities and direction. The ED transition should be seen >> as an opportunity to rethink and restructure. The governance reshuffle and >> adaptation has been managed well, recommendations brought about by the >> governance review have been implemented, and board diversity has been >> achieved, which will provide a strong foundation for the coming transition. >> At the same time, the FDC notes that it seems difficult to identify a >> sustainable and clear staff structure beneath the executive level.”* >> >> It is clear to the board that many of the assumptions and plans on which >> the current organisational structure was originally built are no longer >> fit for purpose. As previously announced, we are already engaged in a >> review of our staff structure. This is currently in a period of >> consultation with the staff concerned and it would be inappropriate to >> discuss in detail. However, the Board’s intention is to have a more >> streamlined organisation, better focused on our strategic goals, better >> able to engage with and involve volunteers of all kinds, and more >> appropriate to the level of resource we have. >> >> The committee further noted: >> >> “*The FDC urges Wikimedia UK to carefully consider its plans to hire >> additional fundraising staff, and to articulate a clear strategy for how >> that position will benefit the organization and the movement. The FDC >> acknowledges that there may be many untapped resources in Wikimedia UK’s >> context, but resources will need to be clearly identified in order to be >> targeted effectively.”* >> >> The board believes that the charity's existing capacity and model for >> fundraising is not adequate, and we cannot at present recommend a core >> budget that assumes significant project-based or general contributions from >> trusts, foundations and corporates. The board is seeking a permanent Chief >> Executive with significant expertise in this area, and who is capable of >> taking >> a stronger personal lead within a restructured staff team. >> >> ____________ >> Michael Maggs >> Chair, Wikimedia UK >> on behalf of the board >> >> >> [1]: >> https://wikimedia.org.uk/wiki/File:Draft_statutory_accounts_2014-15_as_at_March_2015.pdf >> [2]: >> https://wikimedia.org.uk/wiki/File:Draft_2015-16_budget_for_board_meeting_of_7_March_2015.pdf >> >> >> >> >> >> _______________________________________________ >> Wikimedia UK mailing list >> [email protected] >> http://mail.wikimedia.org/mailman/listinfo/wikimediauk-l >> WMUK: https://wikimedia.org.uk >> > > _______________________________________________ > Wikimedia UK mailing list > [email protected] > http://mail.wikimedia.org/mailman/listinfo/wikimediauk-l > WMUK: https://wikimedia.org.uk >
_______________________________________________ Wikimedia UK mailing list [email protected] http://mail.wikimedia.org/mailman/listinfo/wikimediauk-l WMUK: https://wikimedia.org.uk
