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In looking at the results (the consolidated statement of fi nancial activities is overleaf), the key caption to focus on is the ‘net movement in funds’. This is, in effect, the net profi t or loss for the year and this shows a very small surplus of £3,625 – essentially a break-even result. In the commercial sector this might considered pretty poor, but for a non-profi t-making charity whose objectives are to fulfi l its charitable objectives rather than make profi ts, it is an almost perfect result. We also have strong reserves – as at December 31, 2015 the general fund reserves amounted to 9.3 months’ of 2016 operating expenditure, slightly ahead of our target of 9.0 months. As you would expect, our investment income remained very weak in 2015, but we had positive investment gains of £1,135 and £2,147 on our general and designated funds respectively. NADFAS has two subsidiaries, both doing well: NADFAS Enterprises and NADFAS Tours. NADFAS Enterprises (NEL) produces the Review and raises advertising revenue to offset the costs; on a much smaller scale it also manages the NAFAS ‘shop’ (see page 54), which we have recently decided to reinvigorate. NEL generated £255,000 of advertising revenue. NADFAS Tours generates commissions from carefully selected travel companies when NADFAS members book trips with them. Tours generated £209,000-worth of commissions in the last fi nancial year. Without the funds from these two sources, the Affi liation fee would be not £12.20 but £17.22, a 41% increase! In 2015, the Board made changes to a number of policies, including a new reserves policy. There is, regrettably, no simple formulaic method to establish appropriate reserves levels and there are therefore lots of judgements to be made in setting such policies. However, from January 1, 2016 the Board decided that our target level of reserves for the general fund should be 7.5 months’ of future operating expenditure rather than 9.0 months.We also received help from the Bulldog Trust, a charity set up to help provide pro bono advice to other charities, in our review of our investment policy. The key outcomes of this review were that our current approach of using mainly passive fund managers was the correct policy for us and it also suggested that the weighting of equity investments in the general fund portfolio should be reduced to 50% from 80%. This has been agreed by the Board. You will by now be aware of many new projects in the pipeline, but thanks to the reserve change just mentioned and a legacy last year of over £200,000 from the late John Stoyle these can be funded without an increase in the affi liation fee.To sum up:1. We remain in robust fi nancial shape.2. NEL and Tours are important to our fi nances and they look set for another good result in 2016.3. We can fund our ambitious future plans without increasing the affi liation fee. ➤2015£000733.4 9.6 1,456.9 2,199.910.31,204.81,906.23,121.3 (2,001.2)1,120.13,320.01,251.232.3 1,283.52,036.5 - 3,320.02014£000736.8 13.91,453.72,204.46.1352.91,578.71,937.7 (1,017.5)920.2 3,124.61,247.632.3 1,279.9 1,843.80.93,124.6NADFAS GROUP BALANCE SHEET AT 31 DECEMBER 2015FIXED ASSETSProperty Other tangible assetsInvestmentsCURRENT ASSETSStocks DebtorsCash in hand and at bankCURRENT LIABILITIESCreditors: Amounts falling due within one yearNET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIESFUNDSGeneral:Charitable Non-charitable trading subsidiaries TOTAL GENERALDesignated RestrictedTOTAL FUNDS Above: National Treasurer Shaun PittACCOUNTSwww.nadfas.org.uk NADFAS REVIEW / SUMMER 2016 43