AGM ACCOUNTS24NADFAS REVIEW / AUTUMN 2010www.nadfas.org.ukNADFAS annual review Drawing from his recent AGM presentation, NADFAS Treasurer Chris Robinsonoffers a summary of the Last year I said that despite thethen economic outlook, we werestill well placed for the future, but that we were being very cautious due to:-the economic situationthe fact that one of our travel affiliates,Hebridean International, had gone intoadministration, resulting in us sufferinga bad debt us expecting a reduction in ouradvertising and tours commissionincome stock markets continuing to fall, whichhad reduced our reserves cover tobelow our target level at the time ofthe AGM.These factors, together with thereduction of interest rates tounprecedented levels, meant that thesmall deficit we had budgeted for in2009 would be higher, despite uscutting some expenditure. 'Results better than expected'In the end, our results turned out to bemuch better than expected as:-we recorded a deficit of under£12,500the stock market recovery in thesecond half of 2009 resulted in ourreserves recovering substantially andbeing above our target at the end ofthe yearwe increased our charitable giving.Therefore, NADFAS continues to be wellplaced for the future.INCOMEIn 2009 the General Fund's income was£1.37 million - nearly 10% lower than2008. Our income, (as shown in the lefthand pie chart on page 27) is stilldominated by subscriptions, advertisingand tours commission.The key points of interest were that:- our income from affiliation feesincreased by over 3%, as once againGENERALDESIGNATEDTOTALTOTALCONSOLIDATED STATEMENT OF FINANCIALACTIVITIES (INCLUDING INCOME AND 2009200920092008EXPENDITURE ACCOUNT)FOR THE YEAR ENDED 31 DECEMBER 2009£000£000£000£000INCOMING RESOURCESIncoming resources from generated fundsVoluntary incomeSubscriptions and fees from membersGift AidDonations, legacies and other similar incomeEducational course fees and eventsActivities for generating fundsTrading subsidiaries' incomeOther incomeInvestment incomeBank interest and investment incomeTOTAL INCOMING RESOURCESRESOURCES EXPENDEDCosts of generating fundsCosts of generating voluntary incomeGift Aid -Societies' administration costsFundraising tradingTrading subsidiaries expenditureEducation courses and eventsCharitable activitiesSocieties and Area grantsEducation VolunteeringMembership servicesGovernance costsTOTAL RESOURCES EXPENDEDNET INCOME/(EXPENDITURE) BEFORE TRANSFERSTRANSFERSGross transfers between fundsNet incoming/(outgoing) resources before other recognised gains and lossesOTHER RECOGNISED (LOSSES)/GAINSGain/(loss) in the value of investmentsRealisedUnrealisedNet movement in fundsRECONCILIATION OF FUNDSTotal funds brought forwardTotal funds carried forward1,028.822.9 1,051.7 1,018.6 -94.5 94.5 79.0 2.7 5.8 8.5 43.1 15.3 162.5 177.8 216.9 307.0 -307.0 333.9 -8.5 8.5 37.2 16.9 12.2 29.1 98.0 1,370.7 306.4 1,677.1 1,826.7 -30.3 30.3 27.0 -119.9 119.9 131.2 443.4 -443.4 442.4 5.3 -5.3 2.3 195.0 78.5 273.5 267.0 240.8 26.4 267.2 274.5 325.9 55.9 381.8 415.6 144.6 -144.6 172.7 1,355.0 311.0 1,666.0 1,732.7 15.7 (4.6)11.1 94.0 (28.2)28.2 --(12.5)23.6 11.1 94.0 (11.5)(1.7)(13.2)-76.6 57.4 134.0 (138.8)52.6 79.3 131.9 (44.8)1,078.1 1,596.8 2,674.9 2,719.7 1,130.7 1,676.1 2,806.8 2,674.9
we had a small increase inmembership. This is a lot better thanmost similar organisationsboth advertising and Tours incomewere in line with 2008. However, thiswas before the £20,000 of bad debtswe suffered in 2009 as a result ofHebridean going into administration. Inour accounts, this sum, which is inrespect of commission, advertisingand postage we were owed, isactually included as expenditurethe biggest reduction was in ourinvestment income which fell by nearly75% - from £64,000 to just under£17,000. This was caused primarily bythe reduction of interest received onour cash deposits following the planned reduction in thenumber of lines that the NADFASShop holds, its sales fell by 20%, asexpected.and accounts NADFAS accounts, covering the financial year to 31 December 2009Above: ChrisRobinson -'Wecontinue to thrivedespite theuncertaineconomicclimate'NADFAS GROUP BALANCE 20092008SHEET AT 31 DECEMBER 2009£000£000FIXED ASSETSProperty755.1 758.4 Other tangible assets125.5 45.2 Investments857.2 648.9 1,737.8 1,452.5 CURRENT ASSETSStocks19.1 29.2 Debtors122.9 172.7 Cash in hand and at bank1,649.2 1,646.4 1,791.2 1,848.3 CURRENT LIABILITIESCreditors: Amounts falling due (722.2)(625.9)within one yearNET CURRENT ASSETS1,069.0 1,222.4 TOTAL ASSETS LESS 2,806.8 2,674.9 CURRENT LIABILITIESFUNDSGeneral:Charitable1,114.9 1,049.6 Non-charitable trading subsidiaries15.8 28.5 TOTAL GENERAL1,130.7 1,078.1 Designated1,676.1 1,596.8 TOTAL FUNDS2,806.8 2,674.9'Further increase inmembership'EXPENDITUREWe kept a very tight control on expenditure which reduced from £1.45million in 2008 to £1.38million in 2009. The breakdown of our expenditure is shown in the right hand pie chart on page 27. The main factorsaffecting expenditure were that:-last year we concentrated on definingthe specification, and then testing andimplementing the new IT system. Themoney required for the IT system wasput aside in 2007/8, and therefore itscost is not reflected in 2009's figures.We expect the final cost to be close toour budgetalthough our staff were focusing on the IT system, they also spent timeimproving our communications,providing support to new andstruggling Societies and getting greater recognition for the work doneby volunteers. These did not involveany major new or increased items ofexpenditure in 2009the cost of the Review, includingpostage, increased from 36 to 42pence per copy -but if we excludethe Hebridean bad debt the cost wasvirtually the same as last yearwe also saved money on the AGMcompared to 2008, as AGMs inLondon are considerably cheaper thanout of town AGMs. The net cost oflast year's AGM was £37,000 lowerthan the 40th anniversary celebrationsat Liverpool.Therefore, the General Fund result for2009, after the transfers to designatedfunds, was a deficit of £12,496,www.nadfas.org.ukNADFAS REVIEW / AUTUMN201025INDEPENDENT AUDITORS' STATEMENT TO THE TRUSTEES OF NADFAS:We have examined the summarised financial statements of NADFAS for the yearended 31 December 2009.This statement is made solely to the Trustees of NADFAS, as a body in accordancewith the terms of our engagement. Our work has been undertaken so that we mightstate to the Trustees those matters we have agreed to state to them in this statement,and for no other purpose. To the fullest extent permitted by law, we do not accept orassume responsibility to anyone other than the Trustees of NADFAS for our work, forthis statement, or for the opinions we have formed.RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS:The Trustees are responsible for preparing the summarised financial statements inaccordance with applicable United Kingdom Law and the recommendations of thecharities' SORP 2005. Our responsibility is to report to you our opinion on theconsistency of the summarised financial statements with the full annual financialstatements and Trustees' annual report.BASIS OF OPINION:We conducted our work in accordance with Bulletin 2008/3 issued by the AuditingPractices Board. Our report on the company's full annual financial statementsdescribes the basis of our opinion on those financial statements and on the Trustees'Annual Report.OPINION:In our opinion the summary financial statements are consistent with the full annualfinancial statements and Trustees' Annual Report of NADFAS for the year ended 31stDecember 2009.Kingston Smith LLP, Chartered Accountants and Registered Auditors, DevonshireHouse, 60 Goswell Road, London EC1M 7AD.