Message from the Treasurer

League of Friends

Treasurer’s Report to Committee Meeting 22 March 2018

The Accounts and Financial Statements for the year ended 31st December 2017 have been checked and verified by Tearle & Carver, the League’s Auditor and I present these to the Meeting for approval and signing. I confirm that these comply with the requirements of the Charity Commission

Tearle & Carver have asked that two copies be signed, one for them, the other for the Charity Commissioner.  I would like two other copies signed one for my accounts file the other to attach to the Minutes of this meeting.

 

Annual Subscription

I propose that the Annual Subscription remain at £5.00 for 2018/2019

 

Treasurer’s Report to AGM March 2018

The Financial Statement for the year ended 31st December 2017 have been checked and verified by the League’s Auditors, Tearle & Carver.

 

I have prepared a summary of the figures and have included the previous year for comparison.

 

Income for the year was £32,389.11 and expenditure £53750.30 leaving an overspend of £21,361.19

 

Income

You will see that donations this year were £5,500 lower than in 2016.

Last year we received £3,000 in two individual donations from hospital patients and there were 12 funerals which resulted in £4,000 being donated as against this year where there were only 4 funerals making £1,000.

On the reverse you will find details of how the donations total was achieved.

Investment Income was slightly higher this year despite the £36,000 I withdrew from the Portfolio. (more later)

There were no legacies in 2017, although I have received one for £2,350 since the year end.

I mentioned at our last AGM that the League’s contribution towards Oxfordshire Health’s cost of running mental health clinics in the EDU had ceased. The Trustees therefore decided to suspend house to house collections for this year and to put more effort into publicity and public awareness of the hospital and the League’s activities.

I made two claims for tax refunds on covenanted giving this year.

I’ll talk in more detail about the League’s Investments in a minute.

 

Expenditure

Most of the items of expenditure are the same year on year (audit fees, insurance etc)

Just a couple of items warrant more explanation.

Equipment purchased for the Hospital. On the reverse I have shown details of the items bought costing £32,527.22.

The cost of printing the ‘150 Years of Caring’ brochures was £478.00. You will see from the Income section that we have sold 9 @ £5.00 each.  There are a few copies left & I encourage you to buy one.

 

Accounts Reconciliation

Despite having spent all our income for the year on hospital equipment, the final overspend was £21.361.19

The reconciliation shows that we started the year with Assets of £295,895.82 and after deducting the overspend we finished with a value of £274,534.63.

The figures underneath show how this final total is achieved.

 

Portfolio

 

Our core investment strategy is to seek long term growth with modest income and very low risk.

Smith & Williamson Investment Management continue to manage our investments and I am very satisfied with their handling of them.

I have shown on a separate page how our Portfolio is invested, together with a comparison as at the end of 2016.  This is really just a brief summary and I don’t intend tonight to go into any more detail but I will happily provide this if anyone cares to contact me at a later date.

Portfolio Reconciliation

 

The Reconciliation shows that we started the year with a value of £285,782 to which is added the increase in value £11,961 plus a bit of income which has been capitalised. From that is deducted the £36,000 I withdrew to pay for the Visual Fields Analyser. SWIM’s management fees of £3,037 and £54 of outstanding dividend are also deducted, leaving a Portfolio balance at 31st December 2017 of £258,854

During the year therefore, in addition to the increase in investment value £11,900 we received dividend income of £8,300 giving a Portfolio return of 7.56%

Remember, it is the specific value of each individual shareholding as at close of business on 31st December which is taken into account in calculating these percentages and figures and share values go up and down on a daily basis.

What of 2018? SWIM’s view is that 2018 is forecast to be the first year in which the global economy will experience synchronous growth in earnings per share since the aftermath of the financial crisis. The UK economy has been considerably more resilient than expected but with Prime Minister May in a fragile political position there is a fear that global investors will be unwilling to commit investment into the UK equities market. Nonetheless, the risks seem tolerable when set against the benign economic backdrop and the lack of plausible alternatives for money seeking a real return.

 

A couple more things before I offer to answer any questions. Firstly can I say a big thank you to all my fellow Trustees for their support during the year & particular thanks  to Sheila Dawe & John Wrigley who I have to pester every once in a while to get them to sign cheques.

Secondly, I have to tell you that my wife & I are intending to retire to the south coast. Our house in on the market and we hope to move later this year. I am happy to continue as Treasurer until then. In the meantime the committee are (I hope) actively seeking a replacement.

 

Thank you Mr Chairman. That is my report.