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Activity Report 1998 - 2001
The Financial Report

Piet Pouw, Treasurer


The triennial period 1998-2000 has continued to be sound and healthy. The reserve has been preserved and shows an amount of 4 911 027 FF at 31st of December 2000. More members, active fund-raising and careful financial management assured a well functioning Secretariat and a successful programme of activities. Over the three-year period covered by this report, real income and expenditures have been almost 2,5 million FF higher than foreseen in the Triennial Budget approved in Melbourne. The reason for those differences lies especially in the higher income from membership dues and programme activities, both being balanced by more expenditures. The interest on ICOM's funds is marked as "income" and used for ICOM's activities.

ICOM's regular income depends for 84% on membership dues, being at the same time 61% of the total income. UNESCO's contribution has been diminished over the years. The contributions of the Réunion des musées nationaux de France and the Direction des musées de France have been more or less stable; in 1999 and 2000 ICOM received a contribution of the USA national committee. The subvention of the Getty Grant Program in 1999 was directly submitted to the International Committee of Conservation (ICOM-CC). ICOM received its part of the result of the General Conference 1998 in its financial year 2000. The sales of publications has been kept on a low level, because ICOM, as a non-profit association under French Law, is only allowed to generate a small amount of money from the sale of publications. Most of the publications have therefore been distributed free of charge. However, others have funded many of ICOM's publications, with the exception of ICOM News and the Studies Series.

For programme activities an amount of 7.4 million FF have been fund-raised, in 1998 19.8% of the total income, two years later still 26.5%. The main sponsors for programme activities were the Netherlands Ministry for Foreign Affairs, the Ministère français de la Coopération, the Swedish International Development Authority (SIDA), UNESCO, the Rockefeller Foundation, the Getty Grant Program, the Ford Foundation, NORAD, the Prince Claus Fund, Gould Foundation and DAI. These funds were mainly used for activities, featured in the Secretariat's report, such as AFRICOM, Arab countries programme, the training of the Nubia museum staff, the fight against illicit traffic, the Ile de Pâques project, the Red List and the Cultural Tourism workshop in Latin America. The funds have been used for direct expenditure such as travel, room and board of participants, rent of conference facilities, translation, printing of publications and extra temporary staff. A small part of the salaries of the Programme sector's permanent personnel was covered by funding from outside.

The salaries of ICOM's Secretariat are an important expenditure of the Organisation although the percentage of salaries in relation to total expenditures diminished from 47% in the triennium 1995-1997 to 40% in 1999 and 38% in 2000. This is part of an effort to spend as little as possible on bureaucratic overhead. Within the expenditures the costs for General Administration and Communication diminished with almost 2 %, the costs for Membership Services raised in 2 years with an amount of 400 000 FF, but remained in the total budget on the same level of 25%. In the triennium the International Committees have received regular subventions of a total amount of 761 177 FF, the Regional Organisations 262 250 FF, for Special Projects an amount of 184 473 FF was spent, and finally for issues of the Studies Series, a sum of 450 685 FF.

Results of the Triennial Period

During the triennial period 1998 to 2000 ICOM moved from a result of 4 293 486 FF at the end of 1997 to a surplus of 4 911 027 as of 31 December 2000. In the last three years, the Executive Council has approved from the surplus some extra budgets for a total amount of 1.4 million FF : in 1998, they covered costs for the publication of the History of ICOM, the interim period for the Secretary General and the Executive Council meeting in Los Angeles. In 1999, extra costs were made for the migration of the database, and finally in 2000 for refurnishing ICOM offices, the Reform Task Force, an extra meeting of the Advisory Committee, and costs for Internet and an Internet specialist.

During the triennial period, the total income of ICOM rose from 9 366 933 FF (31st December 1998) to 11 258 528 (31st December 2000), an increase of 20.1%; in comparison, the decrease in the triennial period 1995-1997 was 9.2%. 34% of ICOM's total income has been covered by outside funding, in comparison with 20% in the triennial period 1995-1997. At the same time, the expenditures rose from 9 120 711 FF (31st December 1998) to 10 517 303 FF (31st of December 2000), an increase of 15.3%; in comparison the increase of expenditures was in the triennial period 1995-1997 13.1%

These satisfying financial results have been reached by careful and secure financial management. Over the past three years, the Treasurer has worked closely and amicably with the Secretary General to achieve the main objectives of ICOM's Triennial Programme within the approved Triennial Budget. This work was carried out with the assistance of the internal accountant as well as with the support of an external accounting firm (Cabinet Dhennequin). The Reform Task Force has developed some financial analyses and advice in order to make ICOM's financial situation more transparent. During its triennium, the finances of ICOM were monitored by an independent auditor, as required by the Statutes.

Outlook for the Future

For many reasons, the financial situation of ICOM can be expected to remain favourable for future years. Normally, ICOM's stable financial situation as well as the policy of financial prudence and safety will be continued in the next triennium; the triennial budget 2002-2004 will be presented at and discussed by the General Assembly. The recommendation of the Reform Task Force will be followed, to establish a Standing Committee on ICOM Finances and Resources.

In the triennial budget 2002-2004, it is proposed by the Executive Council to fix the reserve as a percentage of the total income. The reserve will be fixed at 40% of the total income. This will be a general target number, there may be times in which the reserve is needed to be used and after which the reserve cannot promptly be elevated to the original number. If the reserve exceeds the 40% limit, it will be used for activities, to be decided upon by the Executive Council. For the Triennial period the reserve will be fixed at an amount of 4.5 Million FF, the equivalent in Euros being introduced as the new currency at 1st January 2002.

Despite the fact that UNESCO will stop the publication of Museum International, ICOM can be expected to continue being a key partner of UNESCO in the achievement of its objectives. The regular income of ICOM covers only the basic operations of the organisation. For the programme activities it will be a challenge to look again for sponsors. It will take a lot of time, energy and ability on the part of the Secretary general and its staff to acquire these funds.

 
1998
%
1999
%
2000
%
INCOME GENERAL
9.366.933
10.983.220
11.258.528
Total Ordinary Income
7.519.529
80,2%
8.406.389
76,5%
8.273.487
73,5%
Membership Dues
6.178.590
65,9%
6.240.362
56,8%
6.939.886
61,6%
Contracts
1.227.810
13,1%
1.865.976
17,0%
1.202.320
10,7%
Sales & Other costs
113.130
1,2%
300.051
2,7%
131.280
1,2%
Programme Activities Income
1.847.404
19,8%
2.576.831
23,5%
2.985.041
26,5%
EXPENDITURE GENERAL
9.120.711
10.340.094
10.517.302
Total Ordinary Expenditures
6.471.113
71,0%
6.909.750
66,8%
6.808.219
64,7%
General Administration
1.613.598
17,7%
1.893.965
18,3%
1.674.048
15,9%
Communication
2.231.926
24,5%
2.002.082
19,4%
2.206.460
21,0%
Membership Services
2.335.579
25,6%
2.723.693
26,3%
2.629.931
25,0%
Offices
290.010
3,2%
290.010
2,8%
297.780
2,8%
Programme Activities Expenditures
2.649.599
29,0%
3.340.344
33,2%
3.709.083
35,3%

RESULT

Extra Budgets

246.222

553.573

643.126

281.767

459.459





 
 
   
Updated: 17 June 2005