Page 52 - SyI-Annual-Report

Approval of Accounts

In the absence of a physical Annual General Meeting (AGM) as scheduled
in April 2020, due to government restrictions relating to the COVID-19
outbreak, a AGM survey was distributed to professional grade members on
Friday May 1st 2020. Results of the AGM survey were then shared with the
membership on Tuesday May 12th 2020 by Chairman Alison Wakefield CSyP
FSyI.

The auditors were approved, as were the accounts. Three questions were
raised by members and are being addressed by the Deputy Chairman, Peter
Lavery FSyI. These specifically related to the appearance of an overspend
in the last financial year, which is the result of a change in the accounting
process and relates to deferred income. Clarifications are provided in the
box below, with the sections in italics taken from the last page of the 2020
2019 Annual Accounts
Audit Committee report.

In accordance with Financial Report Standard 102 section 1a, Armstrongs have
accounted for deferred income in the accounts. The principle is to “match” the
correct income with the correct expenditure in the correct period. [NB: Deferred
income consists of the money you have received during the year which
relates to next year’s services. For instance, this could be a membership paid
in December 2019 which relates to the 2020 year.]

In the normal run of things there would be a deferred income figure bought
forward from last year. Unfortunately, our accounts were not prepared on this
basis before and all income received in the year has been recognised as income
in that particular year. This is not correct in accordance with Financial Reporting
Standards. The result of deferring income in these accounts for the first-time
results in a greater-than-usual deficit (due to the fact we had not accounted for
deferred income bought forward).

However, whilst noting the increased budget deficit the Audit Committee expects
this to decrease/fall in line with budget following the accountancy realignment
and additional reserves to be built up as a percentage increase against revenue.
The Institute remains in a strong fiscal position with total assets of £204,401.00
(as of 31st Dec 2019).

You will appreciate that the Institute is growing steadily and as such, revenue
is increasing. As a “not for profit”, the Institute does not make profit, only
surplus funds which we then invest into better membership benefits. At the
time of writing, we have invested a considerable amount securing a new
collaborative community platform from Higher Logic. This platform will
give every Special Interest Group its own workspace to enable their brilliant
thought leadership to be captured and shared for all.

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