16.1 RECOMMENDATION ON APPOINTMENT OF AUDITORS FOR 1997-8 [COUNCIL
ITEM 8]
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Prof. Ward described the difficulties that been experienced
with IUPAC's long term auditors, Neutra Treuhand in 1998. Neutra
Treuhand had in effect resigned as auditors by not arranging
for an audit as requested. This had led to the employment of
a local firm in Raleigh, North Carolina, USA, Batchelor, Tillery,
and Roberts. The Bureau was asked to recommend to Council that
the decision to employ Batchelor, Tillery and Roberts to conduct
the audit of the 1997 and 1998 accounts be approved. The Bureau
was also asked to approve the use of the same firm for the audit
of the 1999 and 2000 accounts. The Bureau recommended to Council
that the appointment of Batchelor, Tillery and Roberts as IUPAC
auditors be approved.
16.2 STATEMENT OF ACCOUNTS FOR 1997 AND 1998 [COUNCIL
ITEM 8]
Prof. Ward reviewed the operational income and expense performance
of the Union for 1997 through 1999. The net income for this
period has been better than budget due to somewhat higher than
budgeted publications income and lower than budgeted expenses
at the Secretariat and in the Divisions. The Union's reserves
are strong and the investment portfolio has performed well.
Prof. Ward pointed out that the excellent investment performance
cannot be expected to continue and some investment losses must
be expected when the market enters the expected down phase of
its cycle. Prof. Ward then gave an overview of the Union's finances
in the period 1990-1999 (see Attachment
4). He noted that the Union has recovered from its difficulties
in 1990-1 and has kept expenses in control and built up its
reserves. Divisional allocations have been increased in recent
years and are now at a higher level, in real terms, than in
1990.
16.3 RECOMMENDED BUDGETS FOR 2000-1 [COUNCIL
ITEM 15]
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Prof. Ward discussed the proposed budget for 2000-1 (see Attachment
5 > pdf file 329KB).
The budget increases the Divisional Allocation and also contains
an operating reserve for use in funding new projects. Prof.
Somsen hoped the Divisions would be able to effectively use
the increased allocation since in the past they generally underspent
their budgets. Dr. Becker observed that the Union is fortunate
in having sufficient funding available for operating both the
Commission system and the project system for this period. He
noted that the reduced spending by the Secretariat compared
to historical levels was not expected to continue. He expected
that, as the project system developed, the Secretariat would
add staff to provide additional support to Task Groups and other
IUPAC bodies.
The proposed Budget was unanimously approved and recommended
to Council.
16.4 RECOMMENDED NATIONAL SUBSCRIPTIONS FOR 2000-1 [COUNCIL
ITEM 15]
Prof. Ward noted that the total National Subscription was being
increased by only 1% in each year. He strongly urged that an
increase, even a small one, be approved to avoid the situation
of the period before 1990. The freezing of National Subscriptions
for a number of years had led to the difficult financial situation
in the early 1990s described above. The proposed National Subscriptions
were unanimously recommended to Council.
16.5 ALLOCATIONS TO IUPAC BODIES, 2002-3
Prof. Ward described the expected situation in the biennium
2002-3. The new structure of the Union should lead to a less
expensive General Assembly. The proposed scheme would use these
savings to increase Division Allocations and would also create
a fund to be used for additional projects. This fund would enable
the Union's resources to be used for those areas that require
extra funding, rather than making a fixed allocation to each
Division.
16.6 ENDOWMENT FUND
Dr. Jost briefly reviewed the commitments that had been made
from the income of the Endowment Fund to date.
16.7 FINANCE COMMITTEE MEMBERSHIP
Prof. Ward noted that with the addition of Dr. G. Martens, the
Finance Committee was now at full strength. He also noted that
Dr. Przybylowicz had assumed the Chair of the Committee at the
1999 meeting.