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.
26NADFAS REVIEW / AUTUMN 2010www.nadfas.org.ukAGM ACCOUNTScompared to a surplus of £9,406 in2008. As previously mentioned, this wassomewhat better than our expectationsat this time last year.GENERAL FUND RESERVESThe other good news was that therecovery in the stock market resulted inthe value of our investments increasingby over £65,000, leading to a positivetotal movement in our general funds of£52,571. Therefore, at the end of lastyear, our general reserves had increasedto £1.13million, which is equivalent to20062007£0K£10K£20K£30K£40K£50K£60KCHARITABLE FUNDS Amounts given in 2006, 2007, 2008 and 20092008£4,000Patricia FayMemorial FundBritcher FurlongFundZena Walker Fund£1,567£25,090£48,720£3,89420052006200720082009RESERVES COVER Free reserves target is 9 months revenue expenditure(minimum of 6 months required)9.301296308.769.969.84Months Cover9.5 months expenditure (our reservescover for the past five years is shownbelow).'Affiliation fee increase lessthan forecast'This was a little above our target of ninemonths, and it was for this reason, thatwe increased the affiliation fee by 10pless per member than the 25p we hadforecast. The 15p increase to £10.90was equivalent to 1.4%, and thereforebelow inflation.GRANT FUNDSFor many of our members, NADFAS isall about providing lectures andenjoyable outings. These are, of course,a very important element of oureducation remit, but our charitable aimsalso cover the giving of aid. Therefore,giving through grants, as well as throughvolunteering time, is important.The Trustees are responsible for threedesignated grant funds, and the grantsgiven by each of these for the past fouryears are shown in the bar chart below. If you add the substantial sums givenby Areas and Societies, we gave over£235,000 in 2009. From what we heardat the AGM this really is making adifference -especially in these difficulttimes. This sum does not includeanything for all the valuable volunteeringwork done by Heritage Volunteers,Church Recorders and Young Arts etc. If you put a value on their time, theamount would be many times this figure.'Grants increased further'The bar chart shows the substantialincrease in grants given in recent yearsby the Patricia Fay Memorial Fund. Theamount we give in grants is that year'snet Gift Aid receipts on the affiliation fee,together with the interest earned onSociety deposits. The reason for thisincrease is the success of the Gift Aidscheme and the considerable number ofSocieties who are now supporting it.Last year, another 13 Societies joined,and by the AGM, a further 12 had joinedthis year. This means that there are nowLeft: The keyquestion iswhether theconsiderablyhigher level ofTours income in2010 willcontinue£NIL£4,000£3,252£56,458(Min)(Target)9.502009£4,000£3,330£60,480NADFAS and Societies gave over £235,000 in 2009