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 28^th 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 1^st 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.

Eddy Quah
District Finance Manager