From the Desk of the District Finance Manager
It is a pleasure to inform that our Q1 Financial Activities were all completed on time – the signoffs of our 2021/22 Year-End Accounts and Year-End Audit, and the DEC/Council-approved 2022/23 Budget was accepted by WHQ on 28th Sep.
We are now into Q2 of the Toastmasters calendar. I trust most Club’s bank signatories and accounts have been transferred over to the new Treasurers and Club Officers now have a good grasp of their budget in their Club Success Plan. Club Reserves have grown for many during the pandemic. As clubs return to face-to-face meetings, be mindful that venue hires and refreshment costs will now be incremental to zoom licenses and other costs that came in during the pandemic.
A quick scan of the renewals on 1st Oct, suggests to me that more renewals are yet to be captured. Making the situation more even challenging is the impact of the recent mini-budget announcement which plunged our currency to almost parity against the US dollar; a Sterling Weakness not seen since 1984.
With a weakening Sterling and with renewals not coming in as strong as they should be, an “MOT” on your club finances at this point may be prudent.
- Why not re-visit your 2022/23 Club Budget/ Plan and re-validate the membership dues collection forecast to understand better the cash inflow expected for the rest of the Toastmasters Year?
- Re-assess all your club commitments, especially those recurring ones such as Zoom subscriptions, Meet-Ups subscriptions, etc. What about sharing the licenses with another club in your Area as often, club meetings do not clash on the same day/time
- Re-forecast your cash outflow, specifically those that are denominated in US Dollars, as this will now inevitably cost more with a weaker Sterling e.g., Membership Payments to TMI, Zoom Licenses, etc.
- Perform some sensitivity analysis on the number of members (new & retained) and on the US$-denominated expenses to see what your end financials will could be
- Use a simple worksheet (example shown) to create better clarity of your club’s financials
A quick sense-check will provide you with a better insight into your club finances; hence allowing you to take the necessary interventions where required, to ensure that your club remains financially sustainable for this year and beyond.
District Finance Manager