Treasurer's Report to Convention 2023

PCC Lion Philip Goodier

I would like to thank the Council of Governors for again giving me the opportunity to serve the Multiple District.

This Report does not deal with any charity monies, which are covered within the relevant charity Report.

1. Current Situation

My primary objective since the start of the coronavirus pandemic, in March 2020, has been to ensure the financial stability, and safety, of the Multiple District.

There are old adages that 'cash is king' and 'turnover is vanity and profit sanity' and these have been my watchwords: as we have seen too frequently, businesses, many of them long-established and well respected, have ceased trading because, ultimately, they ran out of cash.

I have resolved to ensure that MD105 remains 'cash rich' and able to withstand financial shocks.

As Council Treasurer a great deal of time has been spent looking at the finances of the Multiple District, the budget and the forecast expenditure for the current fiscal year, 2022-23, in order to make recommendations to Council.

The Council of Governors is not planning any major capital spending; the MD Headquarters was modernised and extended to make it DDA compliant a few years ago. There should be no requirement to undertake major works in the medium term - we will of course have ongoing repairs and renewals, simply to safeguard the fabric of the building.

2. Liquidity

The MD is a cash rich organisation well capable of meeting all day-to-day obligations from cash flow: as at the 31st March the Association has the following liquid funds:

GBP Bank Accounts, details of the account holding institutions are:

CAF Bank Ltd, RBS Farnborough, Lloyds Leeds - total instant access funds £242,146

It should be noted that financial movements are managed to minimize the risk of balances with any one institution exceeding £85,000, the maximum covered under the Financial Services Compensation Scheme.  

In addition, investments with a market value of £196,899 are held: these are instant access, not term investments.

This gives total liquidity of £439,045

3. General Account

The Review of the 2022-23 out-turn is contained within the Convention papers, on page 8 of the audited accounts for the year ended 30 June 2022. The comparison of Budget to Actual expenditure for year to 30th June 2022, is contained in the Budget Proposals for 2023/24.

4. MD Convention

At one time we held the MD Convention in a seaside resort, on the basis that we would receive what is termed 'subvention' from the local authority, who usually owned and managed the venue. 

Subvention is the principal that our collective spend in a locality is worth the offset provided to attract our business. Increasingly, local authorities are handing over the management of venues to third party companies and subvention is a thing of the past.

The MD Convention Officer increasingly looks to large hotels as venues. It should be noted that many hotel groups incurred significant losses over the two to two and a half years of the pandemic and we have experienced significant cost increases from all hotel groups.

Unfortunately, predicting demand and attendance a few years in advance of the event has become very difficult and losses have been incurred on social events in recent years such that there is now no social reserve fund.

5. MD Finance Committee

The Finance Committee met on Saturday 7th January 2023 to review the financial position of the Multiple District, to discuss the Budget submissions and to make recommendations to Council for the 2023-2024 financial year on a range of issues. It should be noted that some expenditure has the weight of either the Constitution or Convention Resolution behind it and is mandatory, not discretionary.

The Finance Committee noted, with concern, that membership levels across the Multiple District continue to fall, albeit that the rate of loss has dropped since the exceptionally high levels seen during the pandemic lockdowns.

I would like to thank all members of the Committee and the MD Specialist Officers for their invaluable contribution, as and when requested, and especially, their attendance and guidance in the very complex budgeting process.

6. Budget for 2023/24

As Council Treasurer, I am aware that there is a demand from members that Council drive down costs, however, inflation hit four-decade highs in several economies last year resulting in a cost-of-living crisis that still threatens to tip the world into recession.

Consumers are reducing their spending to cope with soaring bills, especially in energy. Russia's invasion of Ukraine and the sanctions in response to Vladimir Putin's brutal war caused energy prices to spike, although prices have since fallen sharply from peaks seen last year.

I prepare a quarterly financial forecast for Council, which is presented at each Council meeting, so that Council are aware of expenditure levels as they change during the year and are informed as to the financial impact their decisions have.

Our Headquarters staff have been very active in seeking competitive quotes for a wide range of products and services; I commend the work put in by Brigitte Green who has been proactive in seeking to reduce expenditure across the board.

Certain costs are being borne by Headquarters because of work being transferred 'in' from MD Officers due to the volume and time being taken.

For many years we enjoyed, as a Not For Profit Organisation, what is termed 'Discretionary Rate Relief'. As a consequence of the financial pressures facing them, Birmingham City Council withdrew that relief with effect from the 1st April 2011. This added more than £6,000 of cost to the organisation, this again is legislative, but provides no additional benefit.  

Although an appeal was lodged against the withdrawal, it was refused on the basis that we are an organisation 'well able to absorb such a cost increase'.

The increase in VAT to 20% in January 2011 costs the MD around £7,500 in a full year. It is considered there is no advantage to register for VAT.

To reduce costs associated with mailings, a resolution was approved at Convention 2011 and Headquarters now distribute information by electronic means.

The Finance Committee discussed the overall budget proposals and the outcomes are incorporated in the "Cost Analysis For Dues Resolution" that accompanies this Report.

7. CIO

The current position with regards to Clubs changing their status to a CIO (Charitable Incorporated Organisation) is that 474 Clubs have been allocated a Mentor, of which:
 343 have had their 105 Order and transfer of assets completed, a further 5
need their 105 Order and transfer of assets completing and a further 14 need to complete the transfer of assets.

There are no Clubs on the waiting list for a mentor.

8. Questions

if anyone has any query or seeks any clarification of anything contained within this report or attachment, please do not hesitate to contact me, at least 7 days before the MD Convention, so that a detailed and complete response can be given.


Lion Philip Goodier CPFA
Council Treasurer



REPORT and ACCOUNTS for YEAR ENDED 30 JUNE 2022

General_Fund_Accounts_Final_2022.pdf thumbnail
Icon General Fund Accounts Final 2022.pdf


COST ANALYSIS FOR DUES RESOLUTION

MD 105 Actual 
2019-2020
Per Head Actual 
2020-2021
Per Head Actual 
2021-2022
Per Head Budget 
2022-2023
Per Head Budget
2023-2024 
Per Head Comments
1   COG Meetings etc. 10859 0.99 144 0.01 12,491 1.28  19,757 2.10  17,044 1.81
2   Council Chairman  1255 0.11 0 0.00 2,536 0.26  2,743 0.29  2,743 0.29
3   Secretary to Council 1922 0.17 0 0.00 931 0.10  1,000 0.11  1,000 0.11
4   MD Council Treasurer  1014 0.09 850 0.09 1,139 0.12  950 0.10  1,200 0.13  
5 A Sergeant at Arms   0 0.00 0.00 0.00 0.00 0.00 Budget included within Council Meetings.
  B MD Convention   5158 0.47 7346 0.73 34,976 3.59  25,000 2.66  25,000 2.66
6 A Elect Seminars - DG Elect net of Grant 3096 0.28 2149 0.21 2645 0.27  4,240 0.45  4,240 0.45
  B  1st Vice DG Elect Seminars 3438 0.31 0 0.00 0 0.00  4,740 0.50  4,740 0.50
  C  2nd Vice DG Elect Seminars 2069 0.19 0 0.00 0 0.00  -   0.00  - 
7   Partner Travel International Convention 0 0.00 0 0.00 3,881 0.40  5,100 0.54  8,175 0.87 As approved by Convention Resolutions, most recently Southport 2009. 2023 Convention is in Boston, 2024 Melbourne, 2025 Mexico.
8   Sp Cttees, Meetings and Contact Govrs 235 0.02 0 0.00 0 0.00  -   0.00  -   0.00
9   Strategic Development Committee 116 0.01 0 0.00 0 0.00  600 0.06  600 0.06
10   Insurance (excl. charged to Clubs) 25830 2.35 28803 2.88 36,609 3.75  32,500 3.46  33,500 3.56 After discussion with MD Insurance Adviser.
11   National HQ 123556 11.23 117091 11.71 111,971 11.48  136,904 14.56  133,453 14.20
12   Directory & Postage 2135 0.19 475 0.05 0 0.00  -   0.00  -   0.00
13   Independent Examination - Accountants 1500 0.14 1750 0.18 1,800 0.18  1,750 0.19  1,750 0.19
14   Travel Aid (105CN, 105N, 105SC) 0.00 0.00 0.00
       182,183 16.56  158,608 15.86  208,979 21.43  235,284 25.03  233,445 24.83
    Communication
15   Magazine 42198 3.84 35732 3.57 25259 2.59  35,000 3.72  44,285 4.71
16   Information Technology Committee 0 0.00 0 0.00 0 0.00 0.00 0.00
17   Contribution from PR Reserve 0.00 0 0.00 0 0.00 - 5,000 -0.53 - 5,000 -0.53
18   PR Comm & Pub 33505 3.05 42660 4.27 35730 3.66  48,000 5.11  50,650 5.39 £20,000 minimum, dictated by Convention Resolution, budget in line with indexation. 
       75,703 6.88  78,392 7.84  60,989 6.26  78,000 8.30  89,935 9.57
    GAT: Service, Leadership & Membership To cover all GAT/GLT/GMT/GST activities.
19   MD Co-ordinator
20 A Membership Officer inc Campus, Extension & Retention
21 B Regional Institute/Faculty Development Institute.
22 C Membership Activities
23   Leadership Development 
24   Service Team
       8,809  2,527  3,642  9,851  1.05  9,851 1.05
25   New Lions Symposium  10,205  10,325  12,000  1.28  15,000 1.60
       19,014 1.73  2,527 0.25  13,967 1.43  21,851 2.32  24,851 2.64
    Youth
26   Lions Opportunities for Youth Com Chmn
27   Young Ambassador
28   Yth Exchange
29   Leo Clubs Co-ordinator (net of Yth Tst contr.)
30   Life Skills Officer
31   Peace Poster 
32   Young Leaders in Service
   
 763 0.07  2,313 0.23  78 0.01  3,000 0.32  3,000 0.32
    International 
33   International Conv. (including attendance   884 0.08  -   0.00  16,478 1.69  18,830 2.00  20,790 2.21
34   Europa Forum
35   Mag. Editor to Europa Forum
36   International Convention Committee
37   LCIF Officer
38   International Relations Officer
39   Patron Liaison
       4,355 0.40  1,237 0.12  4,396 0.45  6,903 0.73  7,000 0.74
    Projects
40   Sight First Officer
41 Portfolio
42   Speech/Hearing Officer.
43   Diabetes Education Prog Co-ordinator
44   Medic Alert Officer
45   P&L Disabilities Officer 
46   Environment Officer
       542 0.05  146 0.01  929 0.10  2,500 0.27  2,500 0.27
    Adm. & Management
47   MD Officers - Attendance, Convention
48   Centennial Committee
49   Charities Treasurer
50   Constitution, Noms & Resolutions Officer
51   Credentials Officer
52   Data Protection
53   Health & Safety Officer
54   Legal Adviser
55   Tax Advisor
56 Vulnerable Person Co-ordinator
       567 0.05  218 0.02  1,714 0.18  3,900 0.41  3,900 0.41
     
    Gross Revenue Total  284,011 25.82  243,441 24.34  307,530 31.54  370,268 39.39  385,421 41.00
    Income & Injection - 22,730 -2.07 - 14,402 -1.44 - 21,572 -2.21 - 15,500 -1.65 - 4,000 -0.43
    Budget  261,281 22.82  229,039 20.82  285,958 28.60  354,768 37.74  381,421 40.58
     
    No of members per budget  11,450  11,000  10,000  9,750  9,400
Dues Calculation  28.80  30.45  28.60  36.39  40.58
Income & Injection
Sundry Expenses  9,443  3,986  799  10,000
Depreciation  2,724  1,816  2,732  2,000  2,000
Sundry Income - 1,163 - 5,941 - 4,019
Gross Profit - Sales (National HQ) - 7,628 - 365 - 8,684 - 6,000 - 6,000
Rental Income - 15,396 - 9,987 - 10,866 - 8,500 - 10,500
Contribution  - 9,349 - 3,322 - 1,244 - 5,000  - 
Interest - 4,313 - 2,488 - 2,906 - 3,000 - 4,500
Tax  2,952  1,899  2,616  5,000  5,000
Total - 22,730 - 14,402 - 21,572 - 15,500 - 4,000
Dues Set  28.50 28.50 33.50 29.50 35.00
Proposed Income Budget  329,805  334,987  337,914  354,768  381,421
Dues Income 270,000 287,625 329,000