Annual Report 2000 - Australian Veterinary Association

Treasurer’s ReportThe year 2000 has seen the AVA strengthen its financial position with Total MembersFunds (Net Assets) increasing to $6,170,740, up from $5,354,346 in 1999.This increase is a due to a combination of obtaining a group profitof $201,394 and an increase in reserves of $615,000, due to arevaluation of property assets held by the AVA.The overall profit of $201,394 was a result of profits generated by44 constituent groups, with 8 groups reporting a break-even resultand 16 groups reporting losses for the year. AVA National generateda profit of $3,791.AVA National profit was contributed to by commissions of $436,000from Guild Insurance, the Commonwealth Bank and Diners Club.This represents a net increase in commissions of 35% compared tolast year and highlights the importance of maintaining relationshipswith key corporate entities in order to strengthen non-subscriptionincome streams and provide personal and business benefits to AVAmembers.The AVA Conference, held in Perth, was a very successful eventfinancially, generating an overall surplus of $99,143 which wasdistributed to the host Division (WA), participating SIGs and AVANational.Total investments increased to $1,487,436, up from $794,005 in1999. This was due to a generous donation of shares to theBenevolent Fund, from a retired member, valued at $51,700, and anet increase in Managed Fund investments of $641,731. Incomedistributions to AVA National for the year totalled $97,471 providinga valuable income stream for the AVA to fund its activities.The last quarter of 2000 saw a decline in the value of somemanaged fund investments held by the AVA due to a volatile sharemarket and weakening global economy. However, fund managerspredict more positive returns in future periods. The AVA has investedinto a diversified and balanced portfolio to reduce the risk ofvolatility of return and expects to see significant long-term benefitsfrom these investments.All AVA properties underwent independent valuation as at December2000, (the last valuation being in 1997), resulting in an increase inoverall property value of $615,000. The National Office atArtarmon, Sydney, increased in value by $380,000, Divisionproperties increased by $170,000 and the Australian Small AnimalAssociation (ASAVA) property at Surry Hills, Sydney, increased by$65,000.Comfund has continued to provide a valuable source of funding forseveral important projects approving in excess of $30,000 worth ofgrants during the year. These included the production of educationvideos and pamphlets, support of the 2000 Pet Expo, variousmembership services and student member promotions. AVAMembers continued generous support of Comfund in their annualsubscription will ensure that these and future worthwhile projectsreceive adequate funding to promote veterinarians to thecommunity and provide enhanced services to the profession. TheComfund Committee encourages all AVA Groups to approachComfund for help in formulating an application for funding for anyworthwhile project. Details on Comfund funding guidelines andapplication forms are available from AVA National.The year 2000 saw the introduction of the Goods and Services Tax(GST) legislation and the requirement to complete a Business ActivityStatement (BAS) each quarter. These changes have placed increasingpressure on all staff and honoraries involved with the production offinancial statements to comply with the legislation and meet strictdeadlines for recording and reporting GST liabilities to AVA Nationaland, through them, to the Australian Taxation Office.One of the challenges for 2001 will be to provide a better solutionto this problem using alternative internet based software solutionsand a consistent approach to the forecasting, collecting, recordingand reporting of group financial data. It will be important to supportAVA National in its plans to overcome the current problems quicklyand effectively for the benefit of all constituent groups.The start of the new millennium sees the AVA in a strong financialposition, however, some challenges lie ahead. CPI increases ofbetween 4-6% are expected in the year 2001 which will put pressureon the ability of the AVA to maintain membership subscription ratesat current levels. The AVA continually strives to increase incomestreams from other sources and will actively seek and promotealternative income generating activities to alleviate the reliance onmembership subscription income to fund AVA activities.After 11 years service to the AEVA and five years on the AVA Board,the last four of which have been as Treasurer, I have decided to takea back seat in AVA activities for a while. It has been a pleasureworking for the Association and I thank all the staff, in particularLauretta Stace and Liz Dawkins, and the members, for their support.I look forward to returning to the AVA sometime in the future.Nicholas KannegieterAVA Treasurer2000 Annual Report - Australian Veterinary Association 13