FINANCIAL TRANSACTIONS AND POSITION IN 2000-2001

 The Trustees’ policies on investments, reserves, grants, and risk management are set out earlier in this report. This section gives an account of the Society’s financial position at the end of the year 2000/2001.

 The Society has had a successful year. Its total income for the year was £19,646, and its total expenditure £21,313. Of that, expenditure on the Society’s main charitable objects was £16,858, a gratifying increase of about 58% on last year’s figure, largely achieved through an increase in the amount spent on grants. The excess of expenditure over income was deliberate, using some of the surplus income from last year. At the end of the year there was £21,589 in the reserve account. The Society’s overall fund balance fell from £393,592 to £367,195, largely as a result of the fall in the value of its investments.

 Comparison with the previous year’s income shows a slight drop of a few hundred pounds. Sales of publications fell markedly, mainly because the Society published nothing new of its own this year. Investment income this year has been about the same as last year, despite the approaching recession, falling interest rates and the Government’s gradual reduction of the dividend tax credit for charities.

 The Society’s main charitable expenditure has been of two kinds, as usual: (a) making grants in support of academic activity (£13,464), and (b) publishing academic books and papers (£1,694). Details are given in the accounts. The amount spent on grants is some £3,700 higher than last year’s total, which itself showed a similar increase on the year before. This is in line with the Society’s policy of spending a greater proportion of its income on grants than on publications. Even so, despite advertising our grants in local universities, colleges, and libraries, the number of applications of sufficient quality did not reach the budgeted allowance of £15,000. The sum spent on publications is higher than last year, but it went on books published by others (The Museums and Galleries Review accounting for most of it). Net expenditure on functions for members was approximately £600. Expenditure on administration was reduced again, to around £2,600. The Society had budgeted an additional £2,250 for the publication (with other local societies) of a plan for the new City Museum, but that was not completed within the financial year.

 The Society has not been immune from the recession which is now affecting the whole industrial world. Nevertheless, the expected falls both in capital values and in dividend income have been cushioned by the substantial proportion of our funds invested in convertible and other fixed interest securities by our investment managers. In such difficult times we are particularly fortunate in being able to benefit from the knowledge, expertise and interest in our affairs shown by Maria Neary and her team at Carr Sheppards Crosthwaite Ltd. The Society’s financial position remains excellent, and the Trustees confidently expect to maintain current levels of charitable expenditure in 2001/2.