Motion #04
Please read this section in conjunction with the audited accounts for 2022.
As I reported last year, we set a 2022 budget with a modest surplus – balancing the need to continue to invest in the Party’s infrastructure and the support we are able to offer to members, activists and elected Greens, with cashflow requirements, and the imperative to reduce the net liabilities position on the balance sheet in a sustainable manner.
The Income and Expenditure Account shows that the Party’s total income increased by £0.1m (2%), while expenditure increased by £0.1m (5%). As a result, the Party made an overall net deficit for the year of £79,425, compared to the net deficit of £3,385 recorded in 2022.
The Balance Sheet has net liabilities of £215,483 as at 31 December 2022, compared to net liabilities of £136,058 the previous year.
Despite the slight decrease in Member numbers, income from membership subscriptions increased slightly again during 2022, up by 6% to £1.48m. Income from appeals donations also increased slightly by £14k, and legacy income remained stable.
Staff costs increased by £114k to £1.8m. This investment, particularly in the Field Team, funded by Regional and Local Party fundraising, enabled more staff to work on local and national election planning and delivery.
Cash balances remained healthy at £485k at the end of the year, although it should be noted that capitation payments due to local parties were £464k as at 31 December 2022 (2021 £435k).
2023 has been a challenging year financially, with a combination of lower than budgeted income and higher than expected costs. On the costs side the two main adverse variants have been legal costs and a higher-than-expected deficit for Spring conference. On the income, side membership numbers have held up (despite the cost-of-living crisis) and combined with members’ generous regular donations on top of their membership this means that membership income is ahead of budget. However, income from appeals, major donors, and legacies are all behind budget.
The Executive has taken some difficult decisions to ensure that we strike a balance between ensuring cashflow and financial sustainability on the one hand, and maximising the resources allocated to achieving the political strategy on the other. The Executive works closely with the Regional Council and the staff team, particularly through its Administration & Finance, and Development sub-committees to monitor our income generation and expenditure on a monthly basis, and to take the appropriate action to enable us to continue to best support the activists, candidates and elected Greens who are delivering across our two nations, week in and week out.
I would like to put on record my thanks to our staff team and to all the volunteer Treasurers who continue to enable us to meet our financial reporting requirements. I would also like to thank Richard Bearman who has acted as Finance Co-ordinator for the majority of this term.
I cannot stress enough how important it is that donations and campaign expenditure are authorised, recorded, and reported in compliance with electoral law, and we are constantly looking to improve the systems and training that exist to support volunteer Treasurers and Election Agents.
AFCom comprises four members of the Executive and one representative of the Regional Council. It meets monthly to consider the management accounts and HR reports in more detail than is possible in a full meeting of the Executive.
Development Committee comprises four members of the Executive and one representative of the Regional Council. It meets monthly to provide oversight and support to the Development staff team who are responsible for membership and fundraising.
Donation Scrutiny Committee comprises two members of the Executive and one representative of the Regional Council. It meets as required to consider whether reportable donations to the Party are a) legally permissible (i.e. from a donor who is on the electoral roll), b) ethically acceptable (i.e. from a source that is in line with the Party’s values), and c) has no strings attached (we do not accept donations which would require, e.g. a change in policy or privileged access to elected Greens).
In 2022, the Committee met four times to consider two donations and two legacies totalling £280,000. All donations were acceptable and therefore accepted.
Note
The role of Party Treasurer is defined in election law and is appointed by a joint decision of the Party Executive and the Regional Council. The role is usually, but not always, held by the Finance Co-ordinator on the Party Executive. During the 2022/23 term of the Executive, the role of Finance Co-ordinator was vacant from September until Richard Bearman’s co-option in November. Due to Richard’s existing commitments as local and regional Treasurer in areas with key local elections, it was agreed that he would not take up the role of Party Treasurer until after May 2023, by which time he had made the decision not to re-stand for the role and Jon Nott remains as Party Treasurer pending the conclusion of the Annual Ballot.
Last updated on 2023-10-21 at 11:41