Download - aagbi

AAGBI Finances
– an overview
The Global financial systems have gone through a pretty torrid period
of late. The banking crash has been followed by the problems of
national debt in the southern countries of the Eurozone.
compared to the previous year due to
increases in general costs such as staffing
and administrative overheads, which in
part reflects the Association’s continued
development (fig 2). Overall, after the
donation to the Foundation of just over £1
million, the Association was able to grow its
development fund for its future needs by
just over £0.3 million.
The Foundation owns and is responsible
for maintenance of the grade II listed
building at 21 Portland Place that houses
the AAGBI. As explained above, it derives
its main income from a gift aided donation
from the Association, the amount of which
has remained unchanged since 2007.
Other sources of income were slightly less
than last year due to reduced income from
scientific meetings and investments (fig 3).
The expenditure was on a par with previous
years and in line with the priorities of the
Association namely: educational events,
publication, research grants through the
National Institute of Academic Anaesthesia
(NIAA), international anaesthesia and our
Heritage Centre (fig 4).
Overall, the finances of the Association
continue to remain stable despite the turmoil
in the market place and general austerity in
public services. The changes being made
to our accounting system should provide
improved and more immediate information
about our spending, allowing better
financial planning and governance. This in
turn will allow Council to focus on how to
make best use of AAGBI funds.
Dr Paul Clyburn,
Honorary Treasurer
From a financial perspective, we live in changing times. This means
that, like other organisations, the AAGBI needs to continually review
and update its finance systems to keep pace. Happily, the changes
taking place at the AAGBI are of a more constructive nature than those
of the financial world.
Association of Anaesthetists of Great Britain and Ireland - Finance Overview
Figure 1. AAGBI – Main source of income
Figure 2. AAGBI – Association Expenditure
Dr Paul Clyburn,
Honorary Treasurer
(net)
(net)
Total AAGBI income for 2010-2011 - £2,221,000
Total AAGBI expenditure for 2010-2011 - £1,904,00
As the latest financial results demonstrate,
the Association and its charitable arm, the
Foundation, have grown in recent years.
We now operate at greater scale and level
of financial complexity than in the past,
and as a result the accounting system
and software we were using had become
dated and didn’t meet our current needs.
Following a lengthy tendering exercise,
we purchased a new accounting package
and the finances are now being migrated
across to the new system. This process is
not quite as simple as it sounds and we
have enlisted the help of an interim finance
controller Mr Adrian Sebastian. I am
pleased to report that the changeover is
proceeding well and should be completed
for the 2012-13 financial year starting in
April. In due course, a permanent finance
controller will be appointed to further
develop the organisation’s in-house
finance function.
Alongside these changes, we have said
goodbye with grateful thanks to external
Business Advisor, Mr Francis Wirgman,
whose advice has been invaluable over the
last 18 years of growth and development
of the organisation. His responsibilities
have been transferred to the organisation’s
senior management team led by our
general manager Karin Pappenheim.
What we think of as the Association of
Anaesthetists is in fact two separate, but
related, legal entities: the Association and
its charitable arm, the Foundation. The
Association is set up as a company limited
by guarantee and reports to Company
House. The Foundation, on the other hand,
is a charity registered and governed by
the Charity Commission. The Association
provides the main membership services
and derives its income mainly form
membership fees and makes a gift aided
donation to the Foundation to provides its
main source of income. The Foundation
looks after the charitable activities of
AAGBI, particularly its educational,
research and overseas activities.
The detailed audited accounts for the last
financial year 2010-11 can be found on the
AAGBI website at: http://www.aagbi.org/
sites/default/files/association_audited_
accounts_2010.pdf. But I will give a brief
overview of last year’s finances.
In order to try and help members during
a period of increasing financial austerity,
the AAGBI again decided to freeze
membership fees last year. Despite this,
the Association’s overall income increased
slightly compared to the last financial year.
This was due to a growth in membership,
better returns on our investments
and more income generated through
commercial sponsorship of exhibitions
(see fig 1). Expenditure increased slightly
AAGBI Foundation - Summary of financial statement - Finance Overview
Figure 4. AAGBI Foundation - Main sources of income
Services and other
income, £55,000
4%
Total AAGBI Foundation income for 2010-2011 - £1,551,000
Figure 4. AAGBI Foundation – Foundation Expenditure
Total AAGBI Foundation Expenditure for 2010-2011 - £1,241,000
For the full 2010-2011 annual report & accounts please visit the AAGBI website www.aagbi.org
6 Anaesthesia News February 2012 Issue 295 Anaesthesia News February 2012 Issue 295 7