Annual Report 2001 / 2002
The financial markets never stand still. If ever there was a year that proved the point, this was it. But it was exciting, for when markets are turbulent, the treasury profession shows its true worth.We have seen unusual movements in prices, the introduction of more and more regulatory and accounting changes and the collapse of organisations with famous names. While this has been happening, the Association has increased its membership and established ever closer links with sister organisations around the world.
It has not been an easy year but I am glad to say that our new governance structure has helped us to adapt. Having received the approval of members last September, we moved swiftly to make it work. Council now has 14 members, half the previous number. They drew lots as to who would serve two, three or four year terms so that we can ensure regular elections in future.
Another consequence of the governance changes is that I shall be the last President to serve two years. In January 2003 our Deputy President, Philip Gillett, will take over from me as President and be succeeded in 2004 by the current Vice President, Chris Jones. This clearly defined succession ensures that I am able to benefit from their guidance and that the workload is more evenly distributed.
On behalf of all in the Association I would like to thank David Creed for his leadership as Chief Executive until April 2002, as well of course for his considerable contribution over the years through the Technical Committee and other areas. When David announced his retirement, the new appointments Remuneration and Audit Committee chaired by the Immediate Past President, Philippa Foster Back, was immediately put to the test to find a new Chief Executive.
From an initial list of 57 candidates, Richard Raeburn was appointed in May 2002. Richard has been a member of the Association for 20 years and was until 2000 the lead treasury partner at KPMG. His experience includes working for international groups such as Diageo. As a consultant directing the development of the Association’s education programme, he introduced a major syllabus review and our innovative e-learning programme. I am sure that he will lead the Association forward to continued success.
Our Advisory Board has also been established and we are delighted that Paul Spencer, former UK Chief Executive of Royal & SunAlliance Insurance and Past President of the Association, has agreed to be its chairman. Having launched Corporate Membership at the beginning of the year, we already have six such members: BP, Novar, Hays, HM Treasury's Debt Management Office, Michael Page International and Shell. Each of these organisations has appointed senior finance team members as Corporate Representatives. It is a two way benefit. They will be able to participate in the ACT activities and receive the benefits of membership though not to use the Association’s designatory letters.We will gain from
their contribution to Association activities and their encouragement to colleagues to join our education programmes and to qualify for individual membership.
Following several years of generating a surplus, we have reported a deficit this year of £43,792. The Review of the year that follows discusses the factors that significantly influenced this result. It is clear that the Association’s performance in the current year will continue to be affected both by the economic slowdown, which impacts spending on advertising and sponsorship, and by some increasing costs.We are forecasting a much greater deficit for the year ending 30 April 2003.
Fortunately, reserves have been prudently built for such an eventuality and Council do not see the need for immediate remedial action, but our cost base will remain under constant review. The next year will be exciting for the Association and its members.With a new organisation designed to maximise the combined efforts of staff, member volunteers and Council, we can look forward with enthusiasm. As an Association we could not succeed without the support of our staff and management team, and the contribution of time and expertise by our members.
My thanks to you all for your efforts, which are very much appreciated. You can be assured that, like the markets, the Association of Corporate Treasurers will not stand still.
Anthony Stern
President
