Navca made loss of £364k in 2014/15

The infrastructure body's latest accounts show that a fall in income of more than £400,000 in the year to 31 March was responsible for the net loss

The local infrastructure body Navca made a loss of £364,575 in 2014/15, the association’s annual accounts show.

According to the accounts, a large fall in income, down from almost £1.2m to about £762,000 in the year to 31 March 2015, has led to the net loss. The charity’s income was £2.6m in 2012/13.

The latest accounts say that the end of Office for Civil Society strategic funding was responsible for 54 per cent of the fall in 2014/15, with the end of one-off grants awarded in 2013/14 accounting for the rest.

Overall, grant income fell by £318,000 in 2014/15 to £230,256.

Expenditure fell by £297,000 to slightly more than £1m – a £256,000 decrease in restricted expenditure accounted for most of that reduction.

Navca was restructured in 2014/15. The accounts say that a deficit budget will be run for the next three years to implement the new strategic plan.

The cost of delivering the strategic plan has been underwritten by £600,000 in reserves, which will be used over three years, according to the accounts.

A further £140,000 in reserves was earmarked as three months’ working capital and £100,000 will be invested in opportunities for members.

Despite the financial situation, Navca changed its membership fee structure "to reduce the financial pressure for our smallest members while maintaining our commitment to members not to increase the fee at the top end".

The charity received £66,823 from membership fees in the year to 2014/15, down from £74,250 in the previous year.

Navca’s accounts also show that staff wages and salaries fell slightly from £581,298 to £546,254, and £75,000 was paid out in redundancy costs.

"The past year has not been an easy ride for anyone at Navca, but a strong reserve position and a clear sense of direction means that we are well placed to face the future," writes Caroline Schwaller, the chair of Navca, in the report.

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