March 2002

TREASURERS REPORT on 2001 Accounts

BIMM February 2002

Please see attached spreadsheet for breakdown.

As you see there is some change in the format this year on the expenditure side as Deena has been able to give more detail with this area becoming more complex with the growth of the organisation. The overall figures can be compared directly.

Income:

Subscriptions: show a rise from 18,685 to 20,637 (1999 13,095)

Course and meeting fees rise from 27,278 to 40,288 (1999 21,253) largely due to increase in sponsorship.

Income from assets: transfers were less at 10,535 (11,511 for 2000) and we have not had to use any of the COIF deposit account this year (shown in cash balance)

Total receipts were 71,541 vs 57,474(2000) and 41,047(1999)

Payments:

Course and meeting expenses increased to 25,461 from 24,526 in 2000 (13,789 1999); other direct charitable expenditure roughly equivalent.

Other expenditure shows a fairly steep rise from 33,527 to 41,079 (in 1999 was 23,622) and this is largely responsible for the increase in total payments from 62,695 to 71,677 (1999 was 40,928)

Cash funds are up a little largely due to good current account balance at end of 2001 (prior to expenditure on courses and meetings), and I have managed to avoid spending money from the COIF deposit account.

Investments show a significant drop due to spending 9,000 and the subsequent fall in the stock market in September 2001 but the share values have recovered somewhat since.

Summary:

2001 has followed a similar pattern to 2000 with increasing expenditure which although partly offset by increasing income, particularly with sponsorship for meetings and courses, has still meant that we have had to liquidate investments to the value of 9,000. This is slightly less than the figure I predicted this time last year but is still not a desirable thing in the long term.

The increase in expenditure has been due to increased activity of the organisation, in particular Deena Harris efforts and it is largely thanks to her that the income from sponsorship has risen significantly so that we have made an overall profit on courses and meetings.

Unfortunately, that trend may not continue as Shire have withdrawn much of the promised sponsorship for the modular course which now looks set to run at a significant loss and the recent Annual Symposium in December ran at a loss of 3,000 which was split with SOM. These figures do not appear in the 2001 accounts, as they are expenses incurred in this financial year.

Future Planning:

We must expect the current trends to continue and cannot rely on sponsorship to bail us out. It is imperative that those organising meetings and courses reduce the risk element by getting as much sponsorship as possible, setting course fees at a reasonable level and keeping a close eye on costs. I was pleased to see detailed planning for the next annual symposium to make the chances of another significant deficit smaller.

The running costs of the organisation are continuing to rise and we cannot simply stop this without jeopardising our activities and success. The organisation can no longer be run on a shoestring budget and we cannot go back to the days of council members running the organisation in the back room of their clinical offices, largely on good will.

I think that we need to increase our income to at least cover this side of the operation without having to dip further into our investments, which are only likely to last another 3-4 years at this rate of expenditure.

I think that it is reasonable to expect courses and meetings to at least break even, so we need to raise approximately 10,000 a year to keep within our current budget.

If we have 360 members and this number remains constant then that implies an average increase of 10,000/360=28 per member subscriptions.

I therefore propose an increase of 30 on all subscription levels and a change to direct debiting to ease administration in future. It is also worth investigating a change to annual subscription date, again to ease administration, as despite my plea last year Deena still has to spend a lot of time chasing people up, and many subscriptions are still being paid at the old rates.

If we do not increase our income by at least the amount indicated above then the organisation will fail financially within the next 5 years, or have to consider other unpalatable options such as merger or greatly downsizing our activities.

Dr Simon Harley Hon.
Treasurer BIMM

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