Plan for Building Reserves Starting 2014 Angela Van Aalst, ECOS - - PowerPoint PPT Presentation

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Plan for Building Reserves Starting 2014 Angela Van Aalst, ECOS - - PowerPoint PPT Presentation

Apr 02, 2023 135 likes •235 views

ECOS Plan for Building Reserves Starting 2014 Angela Van Aalst, ECOS Treasurer ECOS 12 th AGM 2013 21 October 2013 WHAT ARE RESERVES? Reserves are ECOS savings They are extremely useful, helping to build ECOS financial sustainability

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SLIDE 1

ECOS Plan for Building Reserves

Starting 2014

Angela Van Aalst, ECOS Treasurer ECOS 12th AGM 2013 21 October 2013

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SLIDE 2

WHAT ARE RESERVES?

Reserves are ECOS’ savings They are extremely useful, helping to build ECOS’ financial sustainability Reserves are the accumulated surpluses and deficits which build up from year to year

Surplus: Excess of income over expenditures Deficit: Excess of expenditures over income

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SLIDE 3

Elimination ECOS deficit 2010-2013

  • Beginning 2010

surplus + 6.750 ▫ In 2010 deficit

  • 58.094
  • Beginning 2011

deficit

  • 51.345

▫ In 2011 surplus + 14.119

  • Beginning 2012

deficit

  • 37.226

▫ In 2012 surplus + 14.688

  • Beginning 2013

deficit

  • 22.537

▫ In 2013 surplus* + 28.916

  • Beginning 2014

surplus* + 6.379

* = expected

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SLIDE 4

THE NEED FOR RESERVES

Reserves act as a buffer or safety margin:

  • to meet ECOS’ legal financial obligations in case
  • f dismantling and/or dismissal of staff
  • to cover operational expenditure which the

EC/donors do not consider eligible

  • to ensure regular cash flows in case of delayed

instalments, unexpected income loss or any

  • ther exceptional circumstances
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SLIDE 5

LEVEL OF RESERVES

  • The reserves shall enable ECOS to meet its legal

financial obligations under Belgian law covering 3 months of staff remunerations and 3 months

  • f running costs.
  • In September 2013, the ultimate financial

reserves to build can be estimated to amount to 122.500 € :

▫ 100.000 € for salaries ▫ 22.500 € for running costs

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SLIDE 6

HOW TO GENERATE RESERVES?

Generate reserves from unrestricted income:

  • Membership fees
  • Unspent income from EC service contracts
  • Some small income like reimbursements
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SLIDE 7

HOW TO BUILD UP?

Year Contribution from Member Fees Contribution from Surpluses Total/year Accumulated reserve 2013 N/A € 6.379 € 6.379 € 6.379 2014 € 8.690 € 3.649 € 12.339 € 18.718 2015 € 8.690 € 3.649 € 12.339 € 31.058 2016 € 8.864 € 3.649 € 12.513 € 43.571 2017 € 9.041 € 3.649 € 12.691 € 56.262 2018 € 9.222 € 3.649 € 12.871 € 69.133 2019 € 9.406 € 3.649 € 13.056 € 82.189 2020 € 9.594 € 3.649 € 13.244 € 95.433 2021 € 9.786 € 3.649 € 13.436 € 108.868 2022 € 9.982 € 3.649 € 13.632 € 122.500 Total € 83.276 € 39.224

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SLIDE 8

QUESTIONS?