A sexual health charity, the Family Planning Association (FPA), has ceased trading and now plans to appoint liquidators.
FPA provides a range of sexual health and advice services and employs 17 people. It was founded in 1966 and is the UK member association of the International Planned Parenthood Federation.
In a statement the charity said: “It is with profound regret that the Family Planning Association Limited (‘the FPA’) has ceased trading pending the appointment of liquidators.”
Trustees have instructed RSM Restructuring LLP to advise them and the firm is writing to creditors about convening a meeting to place FPA into a creditors voluntary liquidation and to outline the next steps.
FPA hopes that some of its services can be taken on by other organisations.
The statement added: “The proposed liquidators and the trustees are very mindful of the importance of the various programmes undertaken by the association and, as such, they are hopeful that a number of these initiatives will be taken forwards by other organisations.”
Civil Society News understands that the announcement was unexpected. The charity’s last tweet last week was to congratulate a runner who took apart in the London Marathon to raise money for FPA.
Pension deficit
FPA’s income for the year ending 31 March 2018 was £1.2m, but it was struggling with a pension deficit of over £2m.
In its accounts it said: “The main financial risks facing the charity are continuing reduction in funding for its projects and the pension deficit.”
It had agreed a recover plan, approved by the Pensions Regulator.
The final salary pension scheme was closed in November 2008 and an assessment in April 2017 indicated there was a shortfall of £4.3m.
“An agreement has been made with the Pension Regulator to repay this shortfall by monthly contributions over 16 years starting from April 2015 and ending by 31 August 2031,” accounts said.
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