For those of you that just want the headline ...... the capitation fee for 2017 remains at £14.50
The draft budget for 2017 includes a couple of new budgets which have been added whilst maintaining the capitation fee at the 2016 level of £14.50.
Specific items of note are:
General Secretariat – I have assumed Marchesi House retain the contract when it comes up for renewal at the end of this year. Any alternative will be cheaper we are told, which would provide additional savings.
IT Systems – This assumes we don’t change our existing systems, i.e. still use Office 365, Technos for CAS, Toucan hosting the website and all of the ancillary bits that glue everything together. We should be able to make savings on the Technos spend if we hold our own copy of the old website archive. This is being investigated at the moment, but we have not quantified the saving yet. This budget includes a provision for assistance to members experiencing problems with CAS. I have built in a £20k spend on CAS2 / membership database, but as this would be capitalised it will affect the depreciation budget rather than this one.
AGM cost – maintained at 2016 level
President’s expenses – home now includes car & its insurance
Presidents overseas – includes VP attendance at the International HYM. This has been reduced by £1k to keep within the 10% rule for international spend.
International officer expenses – also reduced by £1k, for the same reason.
41 International capitations – increased again due to fee structure revision.
Cost of conference – maintained at 2016 level
NCLO expenses & training – budget introduced to cover the cost of NC training days and also NCLO travel expenses so that he can fulfil his duties.
Magazine – assume £13k per issue including postage. Any postal inflation will be offset by decline in physical copies.
Board Meetings – reduced by £3k, assumes no separate forward planning meetings. This budget also covers the cost of family meetings.
Honoraria budget has been removed. Board members who don’t enjoy free minutes on their phones will submit claims for their calls using itemised billing, similarly with postage, although I would expect in this day and age that this would be minimal.
Depreciation – this is based on current assets, and assumes a £20k development in 2017 which could be CAS2 or a joint membership database with Round Table.
Membership promotion – reduced by £5k as the Platinum RTBI membership agreement comes to an end this year. This budget covers our Wider Wallet subscription, NC polos, name badges and other membership initiatives
Millennium Way – This is a new, one-off budget for 2017. It will enable 41 Club to properly support the promotion of this national asset. A separate report was submitted to Council by Vice-President Barry, which you can find in the minutes of the February meeting.
Community Service – Another new budget promoted by IPP Jim Smith. Again his report can be found in the February minutes.
Sales – income reduced to £3k, to reflect commission only income.
Based on the current membership trends we will have around 15,250 paying members in 2017. Maintaining the capitation fee at £14.50 gives a small surplus of £2,325 for the year.
I am proposing no increase in NC weekend allowances or mileage rates.
Cash-flow & Reserves
Attached to the budget is a cash-flow statement for 2015 and projection to the end of 2017.
At the end of 2015, cash reserves stood at just under £84k. By the end of the current year, assuming we spend on budget they will stand at £109k, just short of 50% of the budgeted expenditure for 2016.