Welcome and introduction
Sally Ingledew (SI) welcomed all and introduced Graham Friday (GF) who is a qualified chartered accountant with 40 years of public sector experience whose role was as facilitator
GF This meeting was to help the CRs to understand any concerns treasurers in the region may have and if necessary take them to the Council and then asked attendees for any questions they may have.
Sheila Ward (SW) How do other u3as manage room hire costs for new groups.
The group discussed different financial management approaches across U3A organizations. Sue from Woking explained their system of charging a fixed £1 per session regardless of group size, with surpluses from large groups covering deficits from smaller ones. Ray from Hawesley U3A described providing seed capital of £100 plus £200-300 annual budget for new groups, while Graham mentioned issuing a general grant of £100 for initial setup costs. Laura shared that some groups collect monthly payments in advance to cover room charges, particularly for new groups.
Banking and Payment Systems Discussion
The group discussed banking and payment systems, with Dave explaining challenges with Lloyd's bank due to limitations on downloading transactions over 750, while having over 1,000 transactions on April 1st. Graham and others shared experiences with different banking methods, including the use of standing orders versus direct debits, with Sheila Ward recommending GoCardless for direct debits and reporting that 70% of their members have switched to direct debit. The discussion included information about PayPal fees, with Geoff mentioning that PayPal charges 1.4% plus 0.20p per payment, and various participants sharing their experiences with transaction download limits and payment processing fees.
Beacon Finance Module Discussion
The group discussed the use of Beacon's finance module for accounting, with Graham explaining its limitations for producing full accrual-based accounts and the need for reconciliation with bank statements. Several participants shared their experiences, with some finding the system useful for simple income and expenditure tracking while others noted issues with Gift Aid reporting and integration with payment systems like PayPal. Mike from Fetcham District U3A described their approach of maintaining separate bank accounts for group finances and using a mix of payment methods including GoCardless, while expressing scepticism about Beacon's benefits for their organization.
U3A Banking and Gift Aid
Graham discussed banking practices for U3As, noting that organizations can use multiple bank accounts to manage membership income and activity group funds while minimizing bank charges. He addressed gift aid issues affecting some U3As, explaining that problems arose from individual tax officers' interpretations of what constitutes teaching and personal benefit, though a resolution has been reached where both parties agree to differ on certain points. Graham recommended checking the trust website's finance section for updated guidance on gift aid procedures.
Gift Aid Compliance Updates
Graham advised reviewing guidance and updating website language to remove "teaching" terminology to comply with tax regulations. He explained that activities open to all members are not considered individual benefits for Gift Aid purposes, which clarified Mike's question about monthly meetings. Sandra raised concerns about splitting membership fees in Beacon and joint membership complications, while Graham noted that Beacon may be replaced with a new system and suggested pushing for an integrated accounting package. The discussion concluded with Graham emphasizing that treasurers are accountable for Gift Aid claims and leaving the calculation details to individual judgment.
PayPal Challenges and Meeting Updates
Hanlie raised concerns about PayPal issues, noting complaints from members about PayPal's new requirements for debit/credit card payments and its impact on new member recruitment. Several participants shared their experiences with PayPal, with Sue reporting successful use at Woking with 1,400 out of 1,700 members using PayPal without issues, while Tony described challenges with PayPal authentication requirements and trustee updates affecting their ability to process payments
U3A Treasurer Financial Management Guidelines
The meeting focused on financial management challenges and responsibilities for U3A treasurers. Graham advised new treasurers to review mandates and update authorized officers for financial accounts and Gift Aid with HMRC. Jacqui raised questions about Charity Commission reporting requirements for Rowlands Castle U3A, with Mike and others clarifying that small organizations only need to report basic information like total revenue and expenditure. Sue expressed concerns about relying on Beacon for Gift Aid due to previous issues, while Sheila reported positive experiences with Beacon's Gift Aid functionality over five years.
U3A Tax and Banking Issues
Graham discussed the issue of U3As receiving corporate tax demands from HMRC, explaining that some organizations have incurred substantial costs seeking legal and accounting advice to address this. He advised treasurers to join the U3A Treasurers Forum on Facebook for guidance and emphasized that if tax demands are received, they must be addressed immediately rather than ignored. Graham also mentioned that banks have been showing difficulty with U3A accounts, with some attempting to freeze accounts, though he noted this issue affects voluntary organizations generally and suggested treasurers should advise their boards on banking options based on their location.
Charity Banking Challenges Discussion
The meeting focused on banking challenges for charities, with participants sharing experiences about working with different banks. Graham advised pushing for decisions at higher levels within banks rather than dealing with lower-level staff, while Mike noted that banks generally avoid charity accounts due to lack of revenue and complex decision-making processes
The participants agreed to hold quarterly meetings going forward, with the next meeting scheduled for November 11th at 10 AM, and decided to collect questions in advance for future agendas.