The annual verification of TRA accounts is a way for a TRA to demonstrate to its members that it is acting responsibly, and the correct financial and governance arrangements are in place.
What does the verification process involve?
The annual verification of accounts involves a meeting between the council's independently appointed consultant and the Treasurer of the TRA who will present their accounts and records for the 12-month period leading up to their AGM meeting date. The end date for the annual accounts statement will usually be 6 - 8 weeks before the AGM date and will often be determined by the last available bank account statement. The end date should not be more than four months before the AGM date, otherwise the AGM could receive a challenge that the statement of accounts being presented is not sufficiently up-to-date.
All of the information will be reviewed at the meeting and the consultant may request further information from the Treasurer, either at the time of the meeting, or to be supplied later either by email, photos sent on WhatsApp or by holding another meeting.
Will there be any cost to the TRA?
There is no cost to TRAs for using this service.
What information does the Treasurer need to provide?
- Bank statements.
- Records of income from hall hire.
- Any grant funding that has been awarded.
- Records of expenditure, including petty cash.
- Details of any services the TRA pays for such as a cleaner for the hall.
It's important that you let H&F's consultant know about any Designated or Restricted funds, so these can be presented accurately on the annual statement of accounts.
Designated funds
Funding that the TRA committee has set aside for a particular activity or purchase.
Restricted funds
Usually relate to grant funding that has been received that comes with conditions to be used for a certain purpose.
Designated and Restricted funds must be shown on the Annual Statement of Accounts that is presented at the AGM.
When will the verification of my TRA take place?
The verification of accounts should take place at least four weeks before your TRA Annual General Meeting.
How do I arrange the verification of accounts?
Contact your Engagement Officer to arrange the verification meeting. The Resident Involvement Team can be contacted on 0208 753 6652 or by email at getinvolved@lbhf.gov.uk.
What will be the outcome of the verification of accounts?
The consultant will verify the information and produce an annual statement of accounts that can be presented at the TRA AGM and will be accepted by H&F as part of the annual registration process.
My TRA accounts have previously been verified by another provider will they be recognised by H&F?
All TRAs will need to use the council's appointed independent consultant. This is to ensure consistency and to make sure that learning and best practice is shared between TRAs.
Example of an annual statement of accounts
Statement of Income and Expenditure
XXXXX Tenants & Residents Association
2023/24
Balance brought forward to this financial year.
Bank account balance 1 January 2023 £4,835.90
Income
Grant - London Borough of Hammersmith & Fulham £500.00
Grant -Sports Development Trust - RESTRICTED £5,000.00
Hall hire £2,325.00
Total Income £7,825.00
Capital items
Expenditure
Expenditure of Sports Development Trust - RESTRICTED £2,935.00
Insurance £217.33 Water £248.77
Utilities £432.36 Cleaning £746.00
Summer event (refreshments & entertainer) £600.00
Total Expenditure £5,179.46
Bank Balance 31 December 2023 £7,481.44
Notes.
The financial year of the TRA is 1 January 2023 - 31 December 2023
£2065 of RESTRICTED funding remains available to be spent in accordance with the terms of the Sports Development Trust grant rules.
The committee has decided to DESIGNATE £3000 for the purchase of new tables and chairs and an oven for the kitchen.
I have checked the bank statements and documents relating to XXX TRA and I confirm the Statement Income & Expenditure is an accurate reflection of the financial affairs of the Association.
Date: 19 January 2024
Confirmed. XXXXX XXXX (Independent Consultant) Approved by the Lead Committee on:
Signed by Chair or Treasurer: