2016 Final Accounts - Subject to approval at the AGM
These are the final accounts for 2016, as presented in the AGM order paper for Blackpool. The Treasurers report to the AGM is also repeated below, and should be read in conjunction with the financial statements.
If you have any questions or queries, drop me a line and I will try to answer them before the AGM to save time there. You can find those already asked in the FAQ at the foot of this page.
The 2016 Accounts have been finalised and approved by our independent examiners, Duncan & Toplis.
I’ve listed below some narrative by budget head on the variances this year, which should be read in conjunction with the accounts themselves.
Capitation fees are down by £9k. I have included capitation debtors where they have paid since 31st December or promised to pay when chased by Marchesi House or National Councillors. Those that have not responded I have made no provision for, assuming they will disaffiliate.
Sales profit is down on budget, as we now rely most on commission rather than profit on stock we hold. Note that the 2017 Budget already reflects this. The return is less, but we are less exposed to stock write-offs.
Our “other income” continues to rise, albeit from a low starting point. We get a small cashbook payment from Utility Warehouse for President Barry’s gas & electricity (if you are ever home-hosted by him, please remember to leave as many lights on as you can). Just Insurance also pay irregular amounts to us when policies are taken out by members, and more recently we have started to collect on the Fred Olsen Cruises tie up. These are all platinum privileges; they don’t cost us anything and provide discounts to members, so please consider using them.
IT Systems – this budget is again underspent (£5k). There have been no IT developments during 2016, so no expenditure has been capitalised.
Presidents expenses overall (home, overseas and car) are under by £5k, with the main reason being that Barry has managed to secure a Presidential car from Hyundai. His PLC has undoubtedly helped as well, covering some of his expenses.
The Fellowship Officer has overspent his budget slightly (£300), but this is partly due to his geographic location and also a consequence of holding the 2018 conference in Belfast. The 2017 budget has already been increased in recognition of this
Magazine printing is underspent by £6k. As in previous years, more members are opting for online rather than a physical magazine, the postage costs are dropping quicker than Royal mail can raise their prices. The drop in membership numbers also has an effect.
Council Meeting costs are underspent by £2k. Two meetings in Birmingham (February and the AGM) plus June is Stratford have helped to reduce travel costs for councillors.
Board meeting costs are also down by £2k. There has been no move towards virtual board meetings after an initial trial meeting proved unpopular.
Club visits by Councillors show a £3k saving. As always, this either means that councillors aren’t making the visits or they aren’t claiming for them when they do. I suspect it is a combination of the two.
Insurance costs shows a small underspend this year of £2k. This year we have tested the market to see if we can find a cheaper policy, or alternatively a similarly priced one with enhanced cover. Due to the nature of our association, we were unable to find another insurer willing to quote for cover which includes 800 chairmen’s jewels in unspecified locations without a list of the security arrangements in all of those locations. The good news is our existing insurer has re-quoted at a reduced premium due to our claims history.
Depreciation is on budget, with no new capitalised expenditure this year. A reminder that the 2017 budget includes provision for depreciation on £20k spend towards a replacement CAS system.
The membership budget has underspent by £3k, and includes the cost of two Councillor training days organised by your NCLO, Phil Ellis
So the overall position is showing a £25k surplus on the year, against a budgeted surplus of £3k.
Cash-flow & Reserves
A cash-flow statement for 2016 and projection to the end of 2018 can be found below.
At the end of 2016, cash reserves stood at just over £124k, which exceeds the reserve policy requirement of 50% of budgeted expenditure.
National Treasurer, but not for long now …