Council Treasurer Portfolio

Council Treasurer - 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 reports. 

1. Current Situation 

a. 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.

b. At the MD Convention in Weston Super Mare I advised that I would undertake a review of expenditure. That work has been done, and the Finance Committee and Council accepted my recommendations and these are reflected in the 2025-26 budget..

c. 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, 2024-25, to make recommendations to Council.

d. It is now 20 years since our Headquarters building was modernised and extended to make it DDA compliant. Ways of working have changed since then including our Headquarters becoming the base for our two primary charitable activities – MIAB & Spectacle Recycling.

Recognizing the impact of these changes, the Council of Governors initiated a review of our Headquarters operations and the layout of the building to ensure that it remains fit for purpose for the next 20 years. This work is ongoing.

2. Liquidity:

The MD is a cash-rich organization well capable of meeting all day-to-day obligations from cash flow: as at the 31st of 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 £263,211

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 £194,118 are held: these are instant access, not term investments. 

This gives total liquidity of £457,329.

3. General Account

The budget for 2023-24 included a return to members of £52,421 from surpluses generated during the covid period and as planned a deficit arose over the year; however, at £23,261 after tax and adjustments, the deficit was significantly lower than budget. Actual expenditure for year to 30th June 2024, is contained in the Budget Proposals for 2025/26.

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. Many venues suffered significant losses during the covid period and are now seeking to recover those losses. As was reported to Convention in Weston Super Mare, we have reached the position were holding a MD Convention in or to the south of Birmingham is becoming prohibitively expensive for us to consider.

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 11th January 2025 to review the financial position of the Multiple District, to discuss the Budget submissions and to make recommendations to Council for the 2025-2026 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 2025-26

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 during 2022 resulting in a cost-of-living crisis that still continues. 

Although inflation has slowly reduced over the past two years it remains above the Bank of England 2% target being 2.6% in March 2025 and forecast to rise.

Consumers have reduced 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 and although prices have since fallen sharply from peaks seen in 2022 & 2023, they remain higher than before the start of the War in the Ukraine.

I prepare a quarterly financial forecast for Council, which is presented at each Council meeting, so that Council is 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'. Given that Birmingham City Council is effectively bankrupt, the chances of obtaining 'Discretionary Rate Relief' are remote, at best.

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

The Finance Committee discussed the overall budget proposals and made recommendations to Council; the outcomes are incorporated in the "Cost Analysis For Dues Resolution" that accompanies the Resolutions.

- Historically, Headquarters have absorbed costs rather than apportioning costs to relevant budget heads. Where possible, Headquarters costs are allocated to the Portfolios they undertake work for. 

- Headquarters salaries are in line with market rates for the Birmingham area.  

- The Budget is based on a projected membership of 9,200 as there continues to be downward pressure on membership.

- The full schedule of budgets is set out in the attachment to the Dues Resolution. 

- I would point out that, for every 250 extra members that we get, we collect £10,500.00 more, however, the general trend is a falling membership. If we can reverse the trend and increase our membership, then the cost burden on each member will be reduced.

7. CIO

I am advised by Lion Paula Mellows, CIO Lead, that, as at 20.4.2025, 502 Clubs have registered an interest to become a CIO; there are approximately 533 Clubs in the MD. 

406 are now registered of which 4 need a 105-order completing and a Step 8 (transfer of Assets). 

And a further 138 need to complete the Step 8 (transfer of Assets). 

And Finally…

This is my 17th and final report to Convention as Council Treasurer; I have served twice as long as any other Lion in this position. It has been a privilege.

During my tenure as Council Treasurer, I have guided the Multiple District through a variety of challenges: the 2008 financial crash, the longest recession in recorded history, a pandemic and a cost-of-living crisis brought on by war. 

And, in my final six months, I must guide the Multiple District through the implications of 'tariffs' and a 'trade war'!

Thankfully I have the skills to deal with the Multiple District's finances in a very positive way.

Part of the solution is to say that, other than the obvious, this is nobody's fault. It is what it is and it's not unique to us.

Even after all these challenges the Multiple District remains financially stronger now than when I was appointed in 2008: a legacy I am very satisfied with.

10. Questions

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

Lion Philip Goodier FCPFA

Council Treasurer

e.mail: ct@lions.org.uk Tel: (Mobile) 07956 919972


MIAB - DG David McKirdy

1. Brief details of progress since the Weston-Super-Mare Convention:

a. The demand for Bottles is rapidly expanding with more external to Lions organisations taking up the scheme. Demand has far exceeded the level estimated at the start of this Lionistic Year.

b. Although the manufacturer has increased the cost price of Bottles twice since the last Convention the greater demand has enabled us to maintain the cost to the customer the same. The aim is to hold this line as long as possible, but we must all be aware that the cost of plastics is rising at a faster rate than the rate of inflation and an environmental tax has been imposed as at 1 April 2025.

c. The MIAB Officer and I recently attended the National Police Missing Persons Conference held in Cheltenham. We introduced ourselves to the West Yorkshire Constabulary Deputy Chief Constable who is the Missing Persons' lead on the National Police Constable's Committee. We have high expectations that MIAB will be adopted nationally across all the Constabularies.

d. We also have developed an MIAB Hub in Leicester, with the much-appreciated help of the Lions of Leicestershire, Leicestershire Constabulary, Leicestershire Fire Brigade, Leicestershire County Council and the East Midlands NHS Ambulance Trust. Severn Trent Water also joined the group at our last meeting. This group is promoting MIAB throughout the County building on the pioneering work undertaken by the Leicestershire Constabulary.

e. The Final Accounts for 2023/24 are here

B.15.1.1.20243008-2324_MIAB_Final_Accounts.pdf thumbnail

Icon B.15.1.1.20243008-2324 MIAB Final Accounts.pdf 

2. Proposals and Decisions

a. This year has seen a number of positive changes, particularly the launch of a dedicated website ( www.lionsmessageinabottle.co.uk ). Orders for bottles can now be taken online and a card payment facility will be added in the near future.

3. Plans/Objectives moving forward

a. Continued engagement with First Responders & Local Authorities.


Insurance - PCC Philp Goodier

Report of Council Treasurer  Insurance report to Convention

1. Background

When Becky Hall stepped down in June 2023 the Insurance Adviser role was advertised, however, Council decided not to make an appointment, and I was asked to take the lead.

We appointed Gallaghers as our insurance broker in July 2023 and looked forward to a strong working relationship, however, that did not develop as expected and caused a great deal of friction with Clubs.

At the Multiple District Convention in Weston Super Mare, I advised that I was very frustrated by what I saw as a lack of support from Gallaghers, for all the reasons Clubs outlined over many months. 

I was frustrated by Gallaghers failure to deliver an insurance handbook that could be put on the MD website. We were advised, in October 2023, that it would be ready within a month and were shown an early version of the document, complete with links. We chased regularly over the following 6 months, without success.

I was also concerned that the additional event policy charges were generating significant income for Gallaghers and Hiscox whilst having a detrimental effect on what Clubs were choosing, or able, to do.

2. 2024 Renewal 

In May 2024 I advised Council & Convention that an alternative broker was being sought, and we entered discussion with Bartlett Insurance Brokers who are also the insurance brokers for both Rotary and 41 Club. In essence Bartlett know our 'business', the types and range of activities that are undertaken by Clubs.

The following key points were agreed with Bartletts; my comments are underneath each statement:

1. Bartletts: We will move the remuneration model to an annual broker and advisory fee. No commissions will be taken from insurers in relation to our account

a. Philip Goodier: Transparent, removes any conflict of interest and no IPT payable, at 12%, on fees.

2. Bartlett will produce a user guide:

a. Upon appointment and within 14 days, we will issue the guide based on the current policy/coverage/appetite of Hiscox. 

b. We will issue an updated guide within 14 days of renewal, based upon the new proposition. (It may well be issued sooner, we have said 14 days, just in case the decision on which option/insurer runs close to renewal)

Philip Goodier: Bartletts delivered against these two statements.

3. Bartletts: We will build your organisational, event and risk profile. We will jointly sign this off and it will be used to negotiate the best terms with the market.

Philip Goodier: This will address our duty for disclosure and give underwriters the rationale to provide the best rating, terms, and acceptance criteria.

4. Bartlett will deliver several options from the market and help guide you through which option (based on calibre of insurer, premium, claims service, wording, acceptance criteria and overall underwriting capability), best suits your needs

Philip Goodier: As Bartletts are on a fee and no conflict exists, their advice should be the best for us, based on needs etc

5. Bartletts will work hard to negotiate a three-year longer-term agreement – thus providing rate and cover stability.

6. Bartletts: as examples of 'friction' created by certain activities and Hiscox stance, we deem none of the following to be an issue with our clients and insurers – therefore we will negotiate them away in the option we recommend:

a. Classic car shows and steam rallies

b. Horse event in Windsor Park

c. 500 persons' limit

The 6 points referenced were provided by Bartlett, by email; we can hold them to account against those statements.

I am pleased to advise Convention that Bartletts delivered as they said they would and our insurances were renewed on 1st October 2024.

After the 2024 renewal it was pleasing to receive a number of emails expressing appreciation at the outcome. The following are representative:

Phil

Congratulations this is 100x better than last years both in terms of the cover agreed as well as your very clear & concise email messaging.

Dear Philip

I have just received this e-mail from our District Secretary and I want to congratulate and thank you and any other Lion(s) involved in negotiating this outcome.

It is a hugely significant step forward and will bring a sigh of relief to many Lions and clubs. I am sure it has not been easy but hopefully the brokers and insurers are businesses that we can work with. 

As I have consistently stated, we will not please all the Clubs all the time where insurance is concerned, there is always going to be the chance that something will not be covered or not in the way that Clubs want. That is the nature of the business, insurers will either offer terms or decline to and we need to be aware of that.

However, if the dramatic reduction in insurance emails by comparison with 2023-24 is a good indicator we have certainly pleased the overwhelming majority of Clubs.

3. Day to Day Matters

To date, no major incidents have been reported regarding insurance claims.

Our Headquarters Staff work closely with the Bartlett team, who provide exceptional support, and are very much meeting the standard anticipated when I recommended their appointment.

I encouraged a series of training sessions for HQ staff, facilitated by Bartlett, to enhance understanding of insurance operations. The response to these has been very positive.  

4. Insurance Webinar

On 31st October 2024 we held an insurance webinar. This was the first time, as a Multiple District, that we have ever done something like this, and I am grateful to Bartlett Group for their willingness to support.

There were 187 'log ons' however, with a small number of couples participating on one log in, we were just shy of 200 people online, a number I was absolutely delighted with; it considerably exceeded my expectations and hopes. The Bartlett staff involved were equally as delighted by both the participation and the quality of questions asked.

Because not everyone who wished to, could join, the presentation was recorded and placed in the insurance bookcase on the members website together with the slides. All questions, whether answered during the session or not, were responded to and circulated.

5. Current Position

As noted above we have an excellent working relationship with Bartlett Insurance Brokers, a relationship that built right from our first discussions. It has been a pleasure to work with them.

They have shown a 'can do' attitude and worked hard to find solutions that are equitable to all parties.

Bartlett Staff will be in attendance on the Friday afternoon in Llandudno and will be delighted to meet members and discuss insurance questions; please take the opportunity.

We will be meeting with Bartletts Staff and representatives of Aviva, our primary insurers, to work through a liability survey that I hope will provide further reassurance.