Julia Roberts
Honorary Treasurer’s statement 2015
Good morning
In this centenary year it is fitting to spend a little time reflecting on the first 100 years of the WI.
The world in which we live has of course changed, but many of the principles governing how we operate were set up in the first few years and have stood us in good stead ever since, including the financial framework.
SLIDE 1
So,just as all Honorary Treasurers have done since the earliest AGMs, I am here today to present the financial report for the NFWI. These days the amounts are larger and the technology is smarter, but the key themes are probably the same.
SLIDE 2
From the outset there were standard rules for WIs which specified that all members paid the same subscription.
In 1915 the membership subscription was two shillings - that’s 10p in ‘new’ money. I was curious as to how that compared to the £36 we pay today, so I looked at the membership subscription as a proportion of average earnings, in 1915 and today.
You might be surprised to learn that it is virtually unchanged. In 1915 two shillings was point two of a percent of the average income at the time; in 2105 it is just under point two of a percent.
And in making decisions on the membership subscription today, the NFWI Trustees are guided by the same principles: every member paying the same, keeping it affordable and aiming to offer great value.
By1917 there were 137 WIs. The earliest county federations were being set up to enable the WIs to talk to each other and the need for a National Federation was recognised to look after the interests of the WImovement and ensure unity of purpose.
SLIDE 3
In 1919, the affiliation fee to the NFWI was set at 3d per member. It’s a bit more than that now but bear in mind that for a number of years the NFWI also received government grantsto allow time for it to become self-supporting. Also,for a number of years, WIs and federations paid ‘suggested’ donations in addition to the affiliation fees.
As reported in NFWI’s 4th annual report, WIs were ‘inspired by a determination to make their National Federation independent of all financial assistance outside the boundaries of its own movement.’
Today, with the income from members’ subscriptions and the other income we are able to raise, the NFWI is in a secure financial position and the WI movement continues to derive strength & unity of purpose from the three parts of the organisation working together.
SLIDE 4
That brings us to the financial results for the last financial year, ending 30 September 2014. I am reporting on the consolidated accounts for the NFWI including Denman, and the trading subsidiary, WI Enterprises Ltd.
How did we do?
SLIDE 5
Total income was just over 6.5millionpounds whilst total expenditure was 6.8million. We had an overall deficit of 300 thousand pounds but I would like to emphasise that this was planned. As you may know the NWI received significant tax refunds in previous years and in those years income was considerably higher than expenditure. We are spending these funds over a number of years to increase the level of services, hence the deficit this year. The overall results were more than satisfactory.
During the year our investments also went up in value by 176 thousand pounds so the total funds as shown in our balance sheet went down by 105 thousand from 9.6million to 9.5million.
SLIDE 6
As you can see from the chart, over 90 per cent of our total income came from three main areas, membership subscriptions, income earned by Denman and the activities of our trading subsidiary, WI Enterprises Ltd.
SLIDE 7
Almost half our expenditure was on activities and services for members, including membership, education, training and public affairs, plus the provision of WI Life magazine and the Inspiring Women conferences held across England and Wales last year.
As with income, the cost of running Denman and the costs of the trading activities make up the next largest areas, with governance comprising 6 per cent of total expenditure
SLIDE 8
To give you more idea of how each business area performed, not including investment gains, the NFWI had a deficit of 140 thousand; Denman ended the year breaking even. WI Enterprises make a profit of £670 thousand; this was donated back to the charity and is included in the results for the NFWI and Denman.
SLIDE 9
Returning to the consolidated results, the balance sheet showed total funds of 9.5 million at 30 September 2014.
Included in this total was 1.3 million, being the balance from the VAT refunds that the NFWI Board has designated for new initiatives and services, including additional activities in the centenary year. These funds were used to pay for the inspiring Women conferences to which every WI president was invited and with the federations, we are now planning to undertake further new local activities. Janice will tell you more about this later today
Our free reserves were 3.9 million at September. These are funds that are readily available, not tied up in fixed assets or restricted funds.
They provide necessary working capital as the NFWI does not receive any further subscription income for at least six months, and also provide contingency to manage risks.
Time does not allow me to take any questions today, but any questions received will be answered individually.
There is of course much more detail in the NFWI’s full Annual Report and Accounts, which is available from your federation or the NFWI, as well as online. There is also a summary in the Annual Review.
SLIDE 10
My closing message is that the NFWI is embarking on the WI’s next100 years from a secure financial position. We have funds available to deliver inspiring new activities for members.
Whilst the subscription will inevitably go up over time depending on the financial needs of all parts of the WI, the NFWI trustees are also aiming to continue to increase the WI and federation shares of the subscription and reduce the NFWI share.
At the same time, we remain committed to making sure membership of the WI is affordable and good value for money.
Thank you.