Report of the epi-Finances Committee

M. Maikowski (DE), ChairM. Maikowski (DE), Chair

The 84th Meeting of the epi-Finances Committee took place by video conference on 8 June 2020. The Treasurer, Deputy Treasurer and Internal Auditors attended as invited guests.

The Treasurer provided an interim financial report.

The coronavirus pandemic has significantly impacted the activities of epi. In particular there have been no physical meetings of Council, the Board/Presidium or committees of epi since mid-March 2020; and all physical educational meetings have been postponed. Also the performance of some investments has deviated from expectations.

Some expenditure on planned meetings unavoidably was incurred before restrictions on movements and meetings were imposed. Whenever possible these costs have been carried forward to apply to postpone meetings when they take place.

Both expenditure and income have reduced significantly compared with budgeted levels for 2020. The net effect however is forecast to be a net surplus of approximately €32000 for the year, compared with a predicted deficit of approximately €65000 based on a full programme of activities.

The Committee notes with approbation the actions of the Treasurer in minimizing risks to the financial position of epi, and expresses its full support.

The Treasurer requested the opinion of the Committee on the basis for preparation of the 2021 budget. There are many more variable factors than is usually the case. The Committee recommends that for the time being the Treasurer prepares the budget on the basis of normally applying assumptions.

Probably there will be greater use of video meetings, e.g. of committees, in the future. If this proves to be the case the budget assumptions can be adjusted accordingly.

Increased use of video meeting facilities will require increased IT expenditure. The Committee reviewed, and approves, the Treasurer’s proposals in this regard.

The Committee discussed financial aspects of the decision to cancel the 2020 EQE. The Committee suggests a supportive gesture such as free registration for an epi seminar for those candidates who had registered for the EQE before the cancellation was announced.

The Committee discussed a proposal by the Internal Auditors to consider moving the financial year end of epi to 30 June. The Committee recommends maintaining a 31 December year end; and recommends keeping this subject under review.

Following discussion the Committee recommends that the Treasurer maintains the current practice with respect to double payments of the annual subscription. These are rare nowadays in any event.

The Committee strongly recommends the prolonging of the existing fidelity insurance and the purchasing of the “directors and officers” insurance for employees and Members of epi undertaking work on behalf of the Institute. This topic is the subject of research in the Secretariat.