Managing Money
Posted by bnchange on June 15, 2007
With an income of about £350,000 per annum, British Naturism is a substantial ‘business’ whatever way you look at it, but it continues to be unincorporated, which means that its officers are trustees for the members’ money and BN needs ‘trusted friends’ to sign legal documents (e.g. employment contracts) on its behalf. “Lots of members’ organizations start off that way before incorporating,” said Duncan Heenan, of the BNchange campaign group But is somewhat unusual to be unincorporated after 44-years and opens the officers, and possibly even the members, to personal liability for unpaid debts. A recent item in Radio Four’s Moneybox programme warned club officials of this danger; one person they featured had to re-mortgage his house to repay a club’s debt. There are other advantages to incorporation too, and we believe it needs to be considered in detail now. ” The late Rex Watson used to say: “There are amateurs and there are rank amateurs.” BNchange believes that its time to get rid of the rank amateurs from BN’s management and introduce appropriate control mechanisms.
A chartered accountant, Duncan Heenan believes that the accounts produced by BN are not transparent or timely enough to enable ordinary members to understand how their money is being spent, or to do much about it. “I find it unacceptable that there is a 10-month delay in publishing the end of year accounts as it practically ensures that nothing can be done about anything that’s wrong until following financial year, virtually a two-year delay, and by then of course, its too late. Just as important, the whole budgetary process seems to take place with no connection to the operating plans or policies of the organisation. Control of budgets is obviously weak and uninformed. This is hardly surprising as none of the EC has any real business experience, but they seem not to even want to bring it in. ”
Poor financial management has led BN to publish accounts showing a deficit amounting to £82,049 in just two years. “I warned them at the 2005 AGM that from my experience, they were showing signs of the classic pre-bankruptcy behaviour,” said Duncan. “ Since then there has been some belt tightening – because they had to – they were running out of money, but there are still some very peculiar priorities in spending, to say the least”
Since that AGM, Duncan has volunteered his services as an accountant for free twice to the EC, the last time shortly after Richard Daniels became Chairman, after just one year as treasurer. Yet, he was turned down each time. “I find that incredible,” said Duncan, who states that he wasn’t even contacted about his offers before they were rejected. “I was not given a reason, despite asking, but I suspect it was because they did not like being criticised – even though the figures bore out every word!”
Similarly, Duncan Heenan’s professional opinion is that the commercial operations conducted by Sundial Marketing have not shown value for money. At the time, the then treasurer, Chris Beesley-Reynolds, opposed Andrew Welch’s appointment stating on record that BN would not earn enough revenue to cover the £1,000 per week he was charging. “Quite frankly,” said Duncan. “I find that prophetic, considering the EC was told that Andrew’s appointment would increase membership, but the published accounts have since shown the downward trend is continuing uninterrupted.” In January 2003 it stood at 15,500, by the end of 2006, it had fallen at 14,995 and in February 2007 it had dropped still further to 10,703, with the bulk of the 2007’s subscription renewals already received. “So it seems that Sundial Marketing and Manning Black have for a some time been luxuries that BN can no longer afford,” continued Duncan. “It is on record that British Naturism is not Andrew’s only client but we are taking up the bulk of his time. Perhaps now would be a good time to reduce BN’s call on his time quite dramatically, if not dispense with it entirely. In any case I feel we need a focussed Campaigning Manager not some undefined Commercial Manager trying to be all things to all men. ”
Now standing for the post of Treasurer, Duncan Heenan added: “Not only do I believe that BN’s policy of commercialisation has been badly carried out, the management of the contractor brought in to implement it has been almost non-existent. This has resulted in financial weakness with nothing to show for it.
“Should I be elected as Treasurer, my priorities will be to get expenditure under control and channelled in to the right things, better value for money in a number of areas, and to ensure that the presentation of the accounts and budgets is transparent and timely enough for anyone to understand them and know immediately how their money is being spent. With my colleagues in BNchange, I aim to revitalise British Naturism, ensuring that it has a sound financial foundation to take it forward into the future.”