Vol. 21, No. 4
of IUPAC's 1998 Accounts
Download the Auditor's Report and Balance
Sheets in pdf format (68K)
Professor John Ward
When reading the bottom line of the income and expense account, the
excess of income over expense, one must bear in mind that under the
U.S. Generally Accepted Accounting Principles now being used, realized
and unrealized gains on our investments must appear as income alongside
the operating income. The actual excess of operating income over expense,
the surplus, shown in capitals four lines from the foot of the table,
is USD 327 612. This figure is some USD 80K better than budget, mainly
due to an increase in Publications surplus of USD 48K, a decrease in
Secretariat costs of USD 30K, and a decrease of USD 76K in Operation
Expense (Divisions, Standing Committees, etc.). The budget figure for
the surplus is large, USD 248K, because the Executive Director has been
able to reduce by some USD 200K the Secretariat figure in the preliminary
budget, which was based on Oxford costs. As a result, the budget for
the 1998-99 biennium is USD 202K in surplus, rather than the preliminary
break-even figure. This money has been set aside for new projects, and
it is hoped that the Divisions and Standing Committees will be able
to use at least part of it before the end of the biennium.
The total reserves (cash plus securities) increased over the year
from USD 3 525 662 to USD 3 643 748, that is by 3.3%, but due to capital
gains and an injection of cash, our marketable securities increased
in value by 12.3%. Of the increase, 17.2% was from the equity portion
of the portfolio, and 6.0% was from bonds and bond funds.
The reserve fund, that is, the total reserve less the Endownment Funds
and the Southern Hemisphere Sinking Fund, is some USD 160K above the
target-figure of expenses over the last two years.
So one can conclude that the Union's finances remain strong and give
the financial freedom to make modifications needed to meet the changing
needs of the chemical community.