world federation of societies of anaesthesiologists annual report 2006

TREASURER’S REPORTfrom Richard G Walsh – 29 July 20072006 was a successful financial year in terms of overall income and expenses of the WFSA, and budgetedexpectations. This is very comforting as the middle year between World Congresses often results in a financialdownturn, particularly as it is marked by the additional expenses of holding a major meeting of the ExecutiveCommittee. This report includes an overall summary of WFSA finances as presented in the audited financialstatements of 2006, some specific points and comments on individual items of income and expense, and asummary of the WFSA investment portfolio.1. Audited Financial Statements 2006Statements for the years 2004, 2005 and 2006 will shortly to be posted on the WFSA website and all readers ofthis Newsletter are encouraged to view these financial statements. The statements are in accordance with strictauditing guidelines for acceptance in the USA, where the Federation is incorporated as a tax-free and charitableorganisation. The statements for each year include figures from the previous year as a comparison. The requiredreporting style often makes it quite difficult to fully comprehend the figures presented and therefore an overallsummary for 2006 is presented as follows.During 2006, overall income was about $480,000 and this was similar to that in 2005. However, there was a largeshift in income sources, as 2005 saw significant income from a financial surplus of the 2004 World Congress(shown as Donations), while 2006 saw increased income from dues (subscriptions) paid to the WFSA by itsmember societies around the world. On the expenses side during 2006, administration costs of the WFSA werestable at about $180,000 and expenditure on Education and Publication projects around the world reached$214,000 – a record for the Federation. The value of WFSA Investments remained stable at about $2.6 millionand these continue to provide a very significant proportion of WFSA annual income, the others being nationalsociety subscriptions for WFSA membership and any surplus due to the WFSA from World Congresses andregional congresses. The net effect of overall income and overall expenses was a bottom line deficit of $20,000for 2006 – significantly far less than the deficit of $148,000 originally budgeted for 2006.2. Specific Income & Expense Items in 2006The WFSA runs it internal finances with Management Accounts and with Budgets which respectively report oncurrent income and expenditure, and projected income and expenses for at least the next five years. They areused to guide the Executive Committee and Executive Management Group for responsible management of WFSAfinances. These accounts and budgets are discussed and varied at regular periods between World Congressesat which all financial reports are presented. The result of each year’s Management Accounts is reflected in theAudited Financial Statements.With respect to the 2006 Audited Financial Statements, the following special points are made:INCOME• Subscription income for 2006 has increased dramatically following the slow response in 2005 to asignificant rise in national member dues as agreed at the 2004 Paris World Congress. Nationalsocieties responded favourably to recognition that WFSA membership fees had not increased inthe 24 years prior to 2004.• Interest and other income from investments increased in 2006 and this reflects excellentprofessional advice and management by the WFSA Financial Advisor, Mr Francis Wirgman.• Profit on investments (realised) was encouraging for 2006, maintaining the progress establishedin 2004 and again reflecting superb management via Francis Wirgman.• WFSA Foundation raised $47,000 mostly in the UK and USA with a much higher budgeted target.The remainder of this item was income from the Glostavent project in the UK.EXPENDITURE• Secretariat expenditure was 15% over budget and this was all due to the increased demands ofholding an Executive Committee meeting in November 2006. The enormous efforts of Ms RuthHooper, the WFSA Administrator in London, deserve great praise.9