RIBI Accounts 2008-2009
T
he last Rotary year was very challenging particularly when we saw the dramatic decline in the value of Sterling against the US Dollar which resulted in us having to examine all items of
expenditure very closely. Te total income exceeded budget because our
membership as at 1 July 2008 was 55,410 (2007 – 55,691) against a forecast of 55,200. Te downturn in the economy and the decline in interest rates resulted in a small shortfall in the return from our Investments. At the last Business Meeting I reported that we had, at
that time, identified cut backs in expenditure in excess of £150,000 and these are reflected in the Accounts, where the majority of the costs are below budget, and some well below. We failed to make a surplus on Information Services
because, following the reorganisation of the shop, £11,000 was written off in respect of old and obsolete stock. Much emphasis was placed on the formation of new clubs
last year the result of which was that 20 new clubs were chartered, more than double the figure for the previous two years. However, this brought about additional costs and the budget was exceeded. When the RI Convention has been held in these islands
in the past, each Rotarian has paid a levy of £1 for a period of three years producing at least £160,000 towards the Convention costs. With only two years to organise the very successful Birmingham Convention, it was not possible to do this. Instead it was agreed to cover the cost of £18,624 for an RIBI stand in the House of Friendship. Te large excess over budget in respect of RI Obligations
was outside our control. When budgeting for the RI per Capita dues, paid biannually, we used a US$ exchange rate of 1.98 and despite measures we took to alleviate the effect of the rapid decline, the extra cost to RIBI was £151,000. Fortunately, during the good years when the rate was in excess of US$2, we transferred monies to an Exchange Reserve to cover such an eventuality. To summarise – if we excluded the excess on the RI
Obligations plus the cost of the stand at the RI Convention, which had not been budgeted for, the savings we had made elsewhere in the RIBI expenditure would have resulted in a surplus of £100,000 against the predicted deficit of £53,955.
RIBI Budget 2010-11
Although there are some signs of recovery, the weak
world economic climate has again impacted on the proposed budget and once more we have been prudent in our approach and have carefully considered every aspect of income and expenditure. Te level of income will be affected by the continued decline in our membership figures – as at 1st July 2009 –
54,984 and the reduction of 426 members in the past 12 months will mean an extra 35p per Rotarian on the subscription. Te affiliation fee of £25 and charter fee of £15 will
continue but the very low interest rates expected during the next Rotary year will result in the expected investment income being less than half that achieved in 2007/08 – again costing each Rotarian 85p. Our ongoing review of expenditure, which included
going out to tender for the insurance business and the production and distribution of the magazine has seen further cost savings in these areas. In fact the projected cost of Rotary Today next year will be 1p per Rotarian per issue. Te introduction of audio-conferencing for some of the committee meetings plus using the website and electronic means of communication instead of paper driven processes has ensured savings in printing, postage, travel and other administrative costs. Te cost of the annual conference has nearly halved in
recent years. In 2011 the conference will be in Dublin but the proposed cost does include a significant element of VAT which it seems, at present, cannot be reclaimed. However, we are seeking expert advice on the matter. Again the most critical impact on our expenditure next
year is the RI per capita dues which will increase by US$3.26 (double the increase of last year). Tis increase will cost us an extra £120,000 equivalent to £2.18 per Rotarian. Te volatile US$ exchange rate is also of concern. We are currently in discussion with the RI finance staff about changing the existing formula used for calculating our per capita dues. Te end result is a deficit of £144,183 aſter leaving the
subscription at £44.75. £140,000 will be transferred from reserves which is within a 85% reserve policy ratio.. We cannot continue to use our reserves to subsidise the
subscription and it is hoped that measures taken to increase the income yield from our investment portfolio plus a good membership dividend resulting from our New Member Recruitment Campaign will help to reduce the current shortfall. It is proposed to continue the New Member Recruitment
Campaign for another 12 months at a cost of £2.75 per member. Te campaign commenced in the East Midlands in the last quarter of 2009 and is currently running in three other regions of the UK but it is too early to evaluate the level of success.
We must continue to look to the future and a planned growth in membership is key to the success of Rotary in these islands.
J. Howard Griffiths,
RIBI Honorary Treasurer 2008/09
10
ROTARY TODAY ANNUAL REPORT AND ACCOUNTS APRIL 2010
April 10 annual report with AMH amends.indd 10
19/2/10 16:22:28
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