Treasurer’s Report to NZPICS Incorporated AGM 2017
It gives me great pleasure to present this, the Treasurer’s Report to the Members of NZPICS, Incorporated for the year ended 30 June 2017.
Our Member numbers as at 30 June 2017 are 426,up73 from 2016.
The Audited Financial Accounts for the 2017 year reflect:
a)We report a loss for the June 2017 yearafter tax of -$590 compared to last year’s loss of -$2,004. Total course participants including Public, In-house, and Short Courses and Workshops were 190up42 on 2016. Self-study courses were 54compared to 103 in 2015.Expenses relating to courses reflected thesechange in numbers,with other costs essentially reflecting tight control where possible but nevertheless their fixed nature regardless of numbers attending courses and sitting exams.
Subscription income was up $5.1Kto $24.2K in 2016compared to $19.1K in2016.The costs associated with the Student Fees Protection Scheme NZPICS is required to provide by NZQA for students who are paying their own course fees were $2.2K in 2017 ($2.3K in 2016, $3k in 2015), plus Audit Fees Of 3.4K in 2017 ($1.1K in 2016) plus a considerable amount of Office time. During the year a number of Temporary Staff and Contractors have been employed to keep the administration and accounting side of things going, and this has been at extra cost. The main increasefrom 2016 in marketing was for salaries of staff employed for the full year to undertake the marketing.The other main marketing activity was the launch of the CLTD course. We have continued to offer benefits to members - such asupdating at cost the course study guide should there have been any changes when a member has to resit an exam,extra assistance with navigating the CBT exam process, the excellent conference and of courseroadshow events, site visits,and other Member events - but these have been mainly limited to within the Auckland area.The USD exchange rate has increase slightly at year end, and this resulted in a small exchange gain for 201 of $0.6K. Interest incomereflects today’s lower interest rates and our call on funds as necessary. Reflecting our change in status, taxation is now payable oninterest, allnon-memberand some member income and the reduced loss for the year means some tax is payable
b)The Balance Sheet reflects $398,973of Accumulated Members Funds. Assets include $429,878in cash funds or equivalents. Accrual Adjustments for Income in Advance reflect registration for courses and examsfor what would be the old term 2 (now Exam Window 3) and In-House Coursesyet to start and membership carry-over into next year.
Iexpect next year to be as challenging financially as the past six years. The change in the APICS relationship and course structure has impacted on our traditional revenue stream and makes the work and expenditure on our strategic, marketingplan, course development, roadshows and member benefits even more vital. We are now using marketing expertisebut this does have a cost, and benefits in increased revenue are not immediate.
I would like, on behalf of Members, the Committee and myself, to thank theour very able office team, Brenda, who has just joined us,to Vishnu, who is the ‘Marketing Guy’ but has been of sterling assistance with the office work requirements all through the year, and to all the Office Temps, Iris, Surjal, Kavi, Vineet, and latterly Davefor their excellent work, help and assistance in the past year.
I would also like to record mythanks to my fellow committee members for their assistance.
The committee recommends a continuing pause in the previous pattern of increasing membership fees so the 2018/19 fee will remain at $75 plus GST for the2018/19 membership year.
Accordingly, to deal with the various financial matters required at this Annual General Meeting, we would now move for consideration by this meeting the following resolutions:
1)“That the Treasurers’ Report and the Audited Annual Accounts for the year ended 30 June 2017 be received, approved and adopted."
2)"That the current Auditors, RSM Hayes Audit, be reappointed as Auditors for the ensuing year and that the fee for the Audit be agreed with the Committee."
3)“That the Annual Individual Membership Fee for Members for the year to 30 June 2019 be set at $75 (SeventyFive Dollars) plus GST."
Thank you.
David Turnbull, CPIM, CA, B.Com (Accounting, Otago)25th August 2017