IUGG XXI
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Report of the IUGG Finance Committee - 1995
The Finance Committee held two series of meetings during the period. The first was at the Observatori de l'Ebre, Roquetes in September 1993 and the second at the General Assembly in Boulder. The Treasurer, Soren Gregersen attended all meetings of the Committee and met our needs for information capably and promptly throughout the period.
The Union is currently in a sound financial condition.
At the 1993 meeting there were substantial concerns about the budget. There had been shortfalls in both 1991 and 1992. These depleted the Union's reserves by almost $90K to approximately $127K at the beginning of 1993. The 1991 problem was largely due to over expenditure in the support of participation in the Vienna General Assembly, this kind of problem was not expected to recur. In 1992 membership subscriptions, the primary source of revenue for the Union, were 15% below budget. While these amounts might be recovered from the delinquent members, we felt that it was important to adjust the Union's spending plan to reflect the current situation. We increased our estimate of uncollectible subscriptions by $25K for 1993, and $30K and $35K for 1994 and 1995 respectively, making the total $150K instead of $60K for the period. We also instructed the Treasurer to maintain the reserve balance above $100K. The Treasurer was asked to cut the amount allocated to symposia as necessary to meet this goal.
Also concerned with the long term outlook the Committee requested the Secretary General to write a clear and explicit letter to every member that is in arrears informing each that they are now in observer status and the implications of that status. The Finance Committee also suggested to the Treasurer, Secretary General and the Associations that travel grants to scientists from countries in observer status should be very limited in size and number.
Financial statements for the Union and the Associations follow this report. For the Union the first report is for 1991. The Union previously budgeted for the 4 years preceding an assembly. This practice meant that there was no approved budget for assembly years until the close of the assembly at which point almost all of the expenses had been incurred. The second report covers 1992-1995, a period including the Boulder Assembly. Shown are actual income and expenditures in each of the 4 years and the actual totals as well as the budget for the period. The final report shows each of the Association's financial activity in a report covering 1991-1994.
The turnaround in Union finances was in 1993 and the reserves have now grown to above $200K again; well ahead of estimates made early in 1995. The very large amount of subscriptions paid in 1995 made a big difference, but as importantly there was careful control of costs by the Treasurer throughout the period. Most controllable accounts are under budget.
The Committee was concerned at both its meetings with General Assemblies. These Assemblies are the largest single activity of the Union, but fall almost wholly outside the Union's financial purview. The Committee recommended that the Council require as a part of any invitation a preliminary budget showing estimated costs, registration fees and other anticipated sources of income. Such a budget was presented for the proposed 1999 Assembly and we expect that this will set a precedent for the future. We also recommended that the organizing committee be required to submit a final operating budget to the Bureau not later than one year prior to the Assembly and there should be a financial report to the Union one year after the close of the Assembly. A later closing addendum should be made if all activities are not completed at that time. Such reports will give the Union an opportunity to review how the participant's fees will be spent and to assess the fiscal responsibility of the organizing committee. They will also permit the Union to determine the potential for increased financial support from the Assemblies.
When the unit of subscription was adjusted at the Vienna Assembly, the intent of the Finance Committee was that future changes would be limited to inflationary adjustments. The Committee recommended this year that the unit be adjusted annually to reflect the change in the OECD inflator for the USA in US dollars. This proposal was adopted by an overwhelming vote setting a clear course for the future. However, we must be vigilant as the number of countries in arrears or continued decreases in member support can put this plan in jeopardy. There is significant concern that there are some countries that are not in their proper categories. The Committee has recommended to its successor that a study be made of how to make improved comparisons among countries that could serve as guidelines.
The revised formula for the allocation of funds between "Union" and the "Associations" is another matter from which the Finance Committee believes the Union should take some satisfaction. The independent efforts of the Association officers and those of the Finance Committee came together in a consensus on a division of funds that appears to be considered equitable by all concerned. The formula, based on allocating a fraction of most categories of Union income, will provide about a 12% increase in total funds allocated.
Throughout the period the Finance Committee considered possibilities for the future funding of IUGG and its activities. Among these were grants from national agencies or from industry, selling the outputs of the Union such as the IGRF, grants from individual patrons of science, individual membership in the Union or the Associations, and of course higher membership subscriptions. The only area with immediate promise was the surcharge on assembly registration fees mentioned earlier. The Finance Committee has suggested that the Union require that a fraction of the registration fee be paid to the Union in support of its administration and programs. The organizers of the Boulder Assembly offered to make such a contribution and a total of about $80,000 is expected. These funds will be allocated directly to the Associations in proportion to their attendance.
Finally the continuing members of the Finance Committee express their deep appreciation to the retiring members, Prof. Joszsef Somogyi and Father J. O. Cardus, both of whom served for 16 years, for their constant commitment to the objectives of the Union and to the work of the Committee. Father Cardus as our President, 1983-1995, twice the tenure of any previous President, led the committee with firmness and diplomacy through many difficult times and issues.
The Finance Committee - J.O. Cardus Chairman, A.F. Spilhaus, Jr. Secretary, J. Somogyi, A. Ashour, M.J. Hamlin
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