Tender for bookkeeping services – AIM

Purpose 

This information is designed to assist companies responding to an invitation to submit a tender proposal for providing bookkeeping, accountancy and management reporting services to the Association of Independent Museums (AIM) from 1 September 2023 to 31 March 2026.  

Background

The Association of Independent Museums (AIM) was established in 1977. It is a charitable company limited by guarantee, charity no 1082215, company no 1350939. It currently has almost 1,300 members comprising independent museums, individuals and suppliers and is one of the largest museum representation bodies in the UK.

The charitable objects that AIM was established for are:

• To promote the advancement of the educational and cultural facilities for the public benefit throughout the United Kingdom, the Republic of Ireland, the Channel Islands and the Isle of Man provided by museums and art galleries which are not, or which have a board of trustees or other policy making executive body which is not, directly controlled by, or the direct responsibility of, any central government department or local or regional authority or similar political sub division.
• By any means whatsoever to promote the advancement of public knowledge and appreciation of museums and art galleries by providing, improving or preserving or assisting in the provision, improvement or preservation of, museums and art galleries to be enjoyed by the public;
• To carry out or pursue such other purposes for the benefit of the community as shall be exclusively charitable.

As AIM looks ahead to our 50^th anniversary in 2027 we are focusing on growing our services and membership to be an authoritative voice for small and independent museums in the UK and to provide ever more support to our membership community to run effective charitable businesses.

AIM’s website at http://www.aim-museums.co.uk/ showcases its range of activities and services to members.

Until 2013 AIM’s accounts were reviewed by an independent examiner when, in light of AIM’s growth and increased financial activity, an auditor was appointed.

The most recent annual report and accounts (2022) can be downloaded via this link: AIM-Annual-Report-2023_compresseda.pdf (aim-museums.co.uk)

In 2022 (the last full financial year that accounts are available for), AIM’s total income was just under £900,000, comprising £527k in unrestricted funds and £367k in restricted funds. Total expenditure was just under £1 million, comprising £536k in unrestricted funds and £448k in restricted funds. In early 2023 AIM secured a new £950k two-year grant scheme funded by the Department for Culture, Media and Sport, with the 2023 budget at £1.8 million income and £1.4 million expenditure. At the end of 2022 AIM’s unrestricted reserves were £276k.

AIM’s unrestricted funds come from subscriptions from its members (on a sliding scale dependent on visitor numbers) and income from advertising, sponsorship and fees for its annual conference.

Since 1 April 2018 AIM has received unrestricted funding of £300k pa as an Arts Council England (ACE) Sector Support Organisation. AIM successfully reapplied for this funding last year and from 1^st April 2023 to 31^st March 2026 will receive £305,520 annually as an Investment Principles Support Organisation. This is a significant amount of our funding, supporting overheads and staff costs as well as activities and services, and comes with important regular financial and other reporting responsibilities in order to provide assurance that public funding is being spent effectively.

AIM also holds restricted funds on behalf of third-party funders which are either earmarked for specific projects or for distribution in grant schemes to members. At present our third party funders, along with Arts Council England on behalf of the Department for Culture, Media and Sport, are the Welsh Government, the National Lottery Heritage Fund, the Pilgrim Trust and the Arts Scholars Charitable Trust.

Applicable Law

AIM’s Annual Report and Accounts are prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)- (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The current auditors for AIM are Crowe UK.

Internal Financial Procedures

AIM’s governing body is its Board members, including a Chair, Deputy Chair, and a Finance, Audit & Risk Committee, who are drawn through open competition from the museums and other associated sectors. They meet five times a year. Following a recruitment round in spring 2023, as of June 2023 the Board is expected to be at its maximum 15 members.

AIM has a staff team of 7 (6.6 FTE). The key contacts for financial matters at AIM are the Director, Lisa Ollerhead, the Grants Administrator, who provides details of grant payments to be made, and the Membership Administrator, who manages many of the processes involved with membership payments, working closely with the bookkeepers.

AIM has an office located at the National Waterways Museum, Ellesmere Port and works flexibly between this office, home, and visits to events or members. 

Services Required

The bookkeeping, accountancy and financial reporting services will include, but may not be limited to:

• Processing purchase and sales ledger transactions on a weekly basis.
• Uploading and reconciliation of all (4) bank accounts and debit card (3 cards) transactions on a weekly basis.
• Uploading and reconciliation of all associated financial payment platforms (Stripe, GoCardless, Eventbrite) on a weekly basis.
• All accounting journals including payroll, accruals, prepayments, grant commitment journals etc.
• Reconciliation and sign off of all balance sheet accounts and review of trial balance on a monthly basis.
• First line credit control (other than membership, which is automated through membership database).
• Reconciliation of all restricted fund balances and movements thereof on a monthly basis.
• Support on financial aspects of funder applications and reporting to funders.
• Provision of financial information for public funders, particularly major funder Arts Council England (including translating AIM budgets into a prescribed budget template annually, rolling 12-month forward-looking cashflows quarterly, and translating AIM calendar year accounts into ACE annual survey tax year accounts).
• Preparation of detailed management accounts and reports for the Board (five times a year).
• Cashflow reporting for external grant funders.
• Providing templates for, and full support during, the budget process to be able to load, review and monitor effectively, including developing coding with AIM.
• Preparation of year end audit file and financial information, liaising fully with the auditors during the year end audit process.
• Preparation of end of year financial statements and balance sheet notes in accordance with SORP.
• VAT preparation and returns (as agent).
• Ongoing and ad hoc support for key staff on financial systems, to ensure best practice is followed.
• Ongoing review of the software market place to identify and help implement improvements including integration with website, payment sites, banking platforms etc.

We are interested in introducing payroll, which is currently carried out by Payescape with The People’s Pension as pension providers, and would like to see proposals which include and cost running payroll as an optional extra.

Transaction numbers:

For the period 1 January 2022 to 31 December 2022, there were a total of 10,816 transaction line items, including reconciling debit card payments made by senior staff under our expenses and payments cards policy.

Please note:

• AIM will prepare the narrative elements of the Annual Report and requires preparation of financial statements as per SORP.
• AIM currently has a weekly payment run, with usually 5-15 payments to be made (excluding direct debits and debit card payments to be reconciled). This may be higher in weeks where grants have been awarded or other periods of high activity for example around conference.
• AIM’s financial software is Xero accounting.
• AIM is currently using the Telleroo platform integrated with Xero to make payments, apart from refunds and salaries which are paid by manual bank transfer, and would like to continue with automated payments. We are also interested in potential new technical solutions to streamline expenses reporting/receipting of debit card payments.
• AIM’s payroll services are currently contracted to payescape.com
• AIM’s financial year runs from 1 January – 31 December with the AGM held in June of each year, although we are considering changing this to the April – March year better to align with funders.
• It would be helpful if tendering organisations are familiar with funding from governments and arm’s length bodies.
• We are in the process of introducing a new membership database by Very Connect and in the future may be interested in integrating payments through this database.
• AIM is VAT registered (registration no: 355372196) with approx. £2-5k per quarter, higher in the spring and summer months when we are taking VATable delegate fees for our annual conference.
• We will discuss appropriate levels of contact with the successful provider but would expect regular meetings to discuss management accounts, funders, and the contract, with ad hoc contact as needed with a reasonable turnaround time for queries and requests. 

Tender Process

Interested parties should submit the following information by noon on Monday 10 July 2023.

• Company Details

1. Organisational structure, outlining capabilities relevant to AIM.
2. The address and contact details of the office that would be responsible for providing financial services.
3. Information on charity sector experience of clients comparable to AIM, specifying the proportion of the firm’s work that relates to charities.
4. Information on culture sector or other publicly funded sectors experience of clients comparable to AIM (i.e. organisations in regular receipt of unrestricted and restricted funding with reporting requirements aimed at ensuring value for money for the taxpayer) 

• Understanding of AIM

1. 1. Demonstration of the nature of AIM’s business and structure and the key financial risks and issues likely to affect the organisation.

• Human Resources

1. The partner and manager who will be assigned to the bookkeeping service, including the extent of their involvement and relevant charity client experience.
2. Succession planning and steps to ensure staff continuity.

• Approach

1. 1. Explanation of strategy and how planning is undertaken.
   2. Control and co-ordination of the finance services.
   3. Reporting arrangements.

• Fees

1. Quotation for the first year September 2023 – August 2024 for all financial services (including VAT and year-end preparation of SORP financial statements), with optional payroll.
2. Provide an analysis of hours by grade of staff involved with details of your current charge out rates.
3. Indicate the basis of charging expenses.
4. Basis for fees charged in future years.

• References

1. 1. Two references from previous clients that demonstrate practice excellence relevant to the services required by AIM.

Contracting Procedure

The contract will be awarded on the most economically advantageous tender in terms of the following criteria:

(i)            Experience – 25%

(ii)           Price (value for money) – 25%

(iii)          Suitability of proposal – 25%

(iv)          Ability to meet timescales – 25% 

 Time Plan

Key Dates                                          Milestone

w/c 5 June 2023                         Tenders invited.

12noon 10 July 2023                    Closing date for receipt of tender proposals.

Friday 28 July 2023                     Board receives recommendation from Finance, Audit & Risk Committee on preferred supplier, after which notifications will be made.

Tender Submission

Electronic copies of the tender proposal in PDF format to be submitted no later than 12noon on 10 July 2023, labelled ‘Finance Tender Document’ in the subject header and emailed to:

[email protected]

Confidentiality and Data Protection

Tender proposals will be treated confidentially and not disclosed to any third party.

The information that you supply as part of your tender proposal will be used in the selection of a bookkeeping service for AIM and for no other purposes. All information will be stored securely with access only to those involved in dealing with your tender. Unless you are awarded the contract your information will be held for a maximum of 12 months and then destroyed.

By submitting a tender proposal you are giving your consent to your data being stored and processed for the purposes of awarding this contract.

Contact Details:

Any questions should be referred to Lisa Ollerhead, AIM Director, [email protected]