It is often noted that some of the components of the management accounts are missing because they are deemed not to be relevant. However, in order to fully understand the financial position of the Trust it is necessary to have all of this information. For example, on the face of it, a significant increase in bank balances is good but without a Balance Sheet it is impossible to know why that has happened and whether this is due to capital grants, timing of GAG and grant income or a genuine improvement in the financial position of the Trust.

The cash-flow is also a key area for trustees to be reviewing, particularly where there may be deficits forecast going forward or significant capital projects taking place.

It is important that Trustees are aware that they are responsible for ensuring they do receive all of this information in order to support their decision making.



The key MUSTS are set out below:

1. The management accounts must comprise - income and expenditure account, variation to budget report, cash flow, balance sheet, and KPI’s;

2. The management accounts must be produced monthly;

3. The management accounts must be circulated to the Chair of Trustees monthly and all other trustees at least 6 times a year;

4. Management accounts must be discussed at each Board Meeting and minuted;

In addition to the above it is good practice to ensure that the circulation and discussion of the management accounts are adequately documented.


Whether you are already working with Rickard Luckin or perhaps seeking independent advice and support, you can of course contact our experienced team to discuss this subject in more detail. Please contact Paul Sedgwick at paul.sedgwick@rickardluckin.co.uk  or on 01268 983922.