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Salient. Victoria University Student Newspaper. Volume. 34, Number 9. 1971

Association Budget

Association Budget

The budget at the head of this page summarizes the Association's Income and Expenditure for the years 1970-1974. 1970 and 1971 incomes are based on the $5 per student allocations from the fee. The years 1972-1974 are based on this allocation being increased to $8 per student, an increase of $3 per student. This with the increases recommended below will raise the Association fee to $25 per student. Please note the budget has been drawn up to equate income with expenditure over a five year period. Thus in 1974 the fee must be increased again. The "total" column (last column) summarizes the five year period.

Little can be said regarding the various items except that provision has been made for a full time accountant/business manager. This person' job will be to oversee the financial activities of the Association. This is at present done by the Treasurer. However it has now become too great and time consuming. Provision is also made for extra staffing (typists etc.) in future years. At present the Association office is understaffed, or will be by early 1972. Honoraria have also been revised in line with what I believe to be the responsibilities involved. Because of the increasing administrative workload provision has been made for honoraria to be' paid to an increased executive. Admittedly no policy has been made in the above areas but it has been necessary to make the above assumptions when drawing up the budget.

It is also necessary to consider the other funds which receive an allocation from the fee:

union building fund. At present $7 is allocated from the fee. By the end of 1972 the original union building will be debt free and this allocation will finance loan repayments on the extensions. After this loan has been paid off in the last 1970's all the allocation will be paid into a fund to build a new Union building in Wai-te-ata Road some time in the early 1980's.

Inflation in the building sector means that cost projections made three years ago are now understated. An increased association fee will pay off the extensions sooner and provide more funds in the same period of time for the new Union building. At the end of 1974 projections for future years can be made with greater certainty than at present.

However indications are that the $1 increase (to $8) necessary to combat inflation over the next three years (1972-1974) will be inadequate by 1975. Thus this allocation must again be increased.

union maintenance fund: This is allocated $5 from the fee. From figures supplied by the managing secretary of the Union this portion will soon be inadequate.

The Union has reached a point where funds barely page break cover expenditure and operation costs - revenues are exhausted. It will have to be allocated enough funds
1972 1973 1974 Total
Association's 1/2 share of projected costs 29000 32000 38000 99000
Surplus/(deficit) if $5 allocation (1800) (6500) (8300)
Surplus/(deficit) if $7 allocation i.e. $2 increase 11600 10200 (6100) 15700

to allow it to meet its current commitments and build up some reserves.

If the Union's allocation is increased, reasonable reserves against contingencies will be accumulated. This will enable the Union allocation to be held stable at $7 per student, at least until the end of 1974. Figures indicate a rise again in 1975 or 1976.

Although the University matches the Association portion of the maintenance fund the University also pays supervisory salaries and other maintenance and administrative costs entirely out of university funds. Thus in reality the Students' Association pays about 1/3 of the total costs of running the Union.

Salient account: the accounts of the Publications Board indicate that "Cappicade" profits will
  • General account
  • building fund
  • maintenance fund
  • trust account
  • Salient account

effectively subsidize the Board's operations until 1974. The general fee revision in 1974 will then examine the $1 allocation to Publications Board and probably increase it. Thus, for the moment, no increase is recommended.

Trust account: The Union Extension Trust account presently receives $1 from the fee for capital development/improvements to the Union. These have taken the form of 35mm projectors and improvements to the Memorial Theatre and Gymnasium. Recently a loan was made to the graduates club. The Trust is in a healthy financial position and does not need further funds over and above the present levy.

This summary and the budgets provided are the basis for my recommending a fee increase.

Present fee recommended fee increase
5 8 3
7 8 1
5 7 2
1 1
1 1
If these recommendations are not approved the following action must be contemplated:
(1)decrease club grants
(2)withdrawal from NZUSA

Richard Greenfield B.C.A.