Annual report 2010 - Australian and New Zealand College of ...

HonoraryTreasurer’sreport“The sound financial position of the Collegeis a reflection of the loyalty and dedication ofcouncillors, committee members, Fellows andstaff throughout Australia, New Zealandand south-east Asia.”This is my first treasurer’s report sinceassuming the role of Honorary Treasurerin May 2010, and I am pleased to reportthat ANZCA finished 2010 in a verysound financial position, with net assetsof $20.429 million and no debt.The operations of the College produceda deficit of $715,366 (in 2009 theCollege achieved an operating surplusof $1.683 million); however year-onyearcomparisons are distorted by theseparation from the College of the JointFaculty of Intensive Care Medicine(JFICM) at the end of 2009. I willcomment further on this result later inthis report. For the second successiveyear, the College investments providedpositive returns with earnings of $721,432in 2010 compared with $980,408 in 2009.The budget for the 2011 year, approvedby Council in November 2010, anticipatesa minor operating deficit. This does notrepresent a move away from the principleof planning for a break-even result atthe operational level without relianceon the performance of the investmentportfolio. This principle has served theCollege well over the past two yearsduring economically challenging timesworldwide. The 2011 budget merelyreflects the particular conditions thatthe College will face including the HongKong Combined Scientific Meetingwhich has a one-off surplus sharingarrangement with the Hong Kong Collegeof Anaesthesiologists. The investmentearnings will continue to be used to buildon the corpus of the portfolio providinga basis for financing future capitalinvestments and maintaining the levelof research funding.Statement of comprehensive incomeThis is a summary of the revenue,expenses and surplus from the activitiesof the College.As mentioned above, the comparisonsbetween 2010 and 2009 are significantlydistorted by the separation of JFICM toform the new College of Intensive CareMedicine. In 2009, JFICM contributed$2.555 million in revenue offset by $1.238million of expenses as reflected in theattached financial statements.In 2010 without that JFICM contribution,overall revenue from operating activitiesfor the year was $19.363 million ($20.505million in 2009). Expenses totalled$20.078 million ($18.823 million for2009), leaving an operating deficit of$715,366 (surplus of $1.683 million in2009). The lower result came throughreduced revenue from key activityareas, again largely as a result of JFICM:registration, training and exam fees(down $779,344) and meeting andcourse income (down $627,291); partiallyoffset by increases in subscriptionsand entry fees (up $135,895) and otherincome, including Anaesthesia andPain Medicine Foundation sponsorshipand donations, international medicalgraduate specialist (IMGS) assessmentsand expense recoveries (up $128,645).Expenditure growth was held to $1.256million whereas the growth in theprevious year had been $1.667 million.Whilst volatility continued to affectinvestment markets, it is pleasing toreport that the College investments(comprising the investment portfolioand interest bearing operational bankaccounts) followed on from the 2009positive return of $980,408 with a furtherpositive result of $721,432. The result wasdriven by income earnings of $782,443,partially offset by unrealised capitallosses of $61,011. Whilst this is pleasing,indications are that in 2011, investmentmarkets will still face volatility and someuncertainty, further reinforcing theCollege approach of minimal relianceon investment earnings to fundoperational activities.The surplus from investments allowed fora small consolidated surplus of $6066 tobe achieved, compared to $2.663 millionin 2009. The asset transfer to the newCollege of Intensive Care Medicine in2009 of approximately $1 million underthe terms of the separation of JFICMmeant that the net surplus for 2009was $1.684 million. Minor exchangetranslation differences between theNew Zealand and Australian dollarat balance date, resulted in the totalcomprehensive income for the yearbeing a negative $1894.Statement of financial positionThis is a summary of the assets, liabilitiesand equity position of the College.Over the year, the net assets of theCollege were maintained at $20.429million compared to $20.430 million atthe end of 2009 despite the net assettransfers to JFICM.The maintenance of the net assetposition with no debt after the JFICMseparation is an indication of the soundfinancial position of the College.Statement of cash flowsA further indication of the sound financialposition of the College is the cashholdings of $4.267 million at the end of2010. This is $372,563 greater than 2009.The College operations produced a netcash outcome of $1.480 million partiallydriven by strong receipts for 2011 eventsand subscriptions which was sufficientto fund net investment spending oncapital asset purchases and growing theportfolio of $1.108 million.CommentsIn 2011 and beyond, Council iscommitted to maintaining a directionthat ensures financial sustainability andprudent use of retained surpluses thatwill enable us to take up opportunitiesand to invest wisely in the future.The sound financial position of theCollege is a reflection of the loyalty anddedication of councillors, committeemembers, Fellows and staff throughoutAustralia, New Zealand and south-eastAsia. Without their continued support theCollege would not be in the position it istoday. I would like to acknowledge thatcommitment on behalf of the College.Dr Lindy RobertsHonorary Treasurer42 ANZCA Annual Report 2010ANZCA Annual Report 2010 43