College finances have continued to perform well during 2009-2010, despite the recession. The two main income streams of membership and education have remained sound with expenditure much as the previous year. However, bank interest has fallen significantly. In these uncertain economic times we will continue to maintain tight controls on expenditure.
Income from the Scheme for Registration continues at a level which covers slightly increased costs, reflected in the fees. In 2009-2010, members paying by direct debit benefited from frozen subscription fees. Last year Council recommended a modest increase of 3% for the year 2010-11. The introduction of quarterly payments has helped to spread the cost of membership and has been well received. This year the College invested in a member survey, helping us to develop a better understanding of how to add value to membership. The results of this will inform our future plans. Income from subscription fees is used to fund initiatives that offer real value to members, for example our new programme of UK wide free regional CET/ CPD events, the development of a public affairs strategy that is helping us to build links with new commissioners and make optometry’s case with parliamentarians, the new College website with access to member only resources and clinical advice and our consumer media campaign that aims to educate the public and the press about the importance of regular sight tests for good eye health. The College has two restricted funds,
where income and expenditure is ring- fenced. The first is the College’s Research Fund, for Research grants, bursaries and scholarships. This fund, to which a percentage of membership subscriptions is hypothecated each year, has adequate
capital and income to continue with our planned activities in line with the Trust Deed, most importantly the funding of PhD scholars – the researchers of tomorrow. The College Trustees also increased the size of our Designated Fund for research priorities not covered by the terms of the Trust Deed. We also have a separate fund for DOCET, the income for which comes from the four Departments of Health in the UK. The timing of DOCET expenditure is always uneven but the cost of the DOCET projects planned for the year are in line with the amount in the fund. A significant proportion of the College’s
reserves is managed on our behalf in a common investment fund. Its value has increased this year in line with stock market trends. As a result, our general unrestricted, undesignated reserves increased by 15% in the year. This is in line with the College’s reserves policy. Summarised financial statements for
the year ended 30 September 2010 can be found on pages 35 to 36 of your annual report. However, if you wish to have a copy of the detailed accounts, this is available from the College by writing to the Chief Executive’s office. In summary, considering the financial climate, I am pleased to report a relatively healthy financial position which provides a degree of confidence to be able to take forward our strategic priorities.
David Parkins Treasurer
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