Last day as President
May 17th, 2011 posted by GrahamHello Everybody,
Well, today is my last day as President of ALIA. Its a pretty big day. We kick off with a meeting of the ‘old’ Board with the ‘new’ Board members in attendance followed by the AGM. If you’re living in Canberra and haven’t RSVP’d for the AGM its not too late. The more members we have attending the better.
For those of you unable to attend the AGM a copy of my speech is below. Its been both a pleasure and an honour to be President, and its even been a bit of fun!
Here’s my speech.
2010 was a year of significant achievement for ALIA, but unfortunately it was a year when we once again ran at an operating loss. I would like to briefly outline some of those achievements, provide some guidance about our financial performance, and outline the measures this Board has set in place to address our financial situation.
Our achievements.
Firstly and most importantly ALIA membership grew by 4% in 2010. This performance bucked national and international professional association recruitment trends. My thanks to all our new and ongoing members for their support.
2010 was ALIA’s year of advocacy. This was in direct response to lobbying and advocacy issues raised in the 2008 survey of members as well responses from members in the 2009 National Advisory Congress. Our lobbying and advocacy initiatives and activities included:
• Every Member an Advocate workshops
• Federal Election Campaign information
• Inquiry into School Libraries and Teacher Librarians
• Internet filtering
• being a founding partner of the Safer Internet Group
• Book Industry Strategy Group
In addition to these ALIA also worked closely with other founding partners and supporters to plan for 2012 the National Year of Reading.
Guidelines for Australian Special Libraries were revised, and the National Vision and Framework for Public Libraries was finalised.
On the education front, ALIA hosted the first ever Library and Information Sector Higher Educators forum, and ALIA published Library Technician Education in Australia: State of the Nation.
In response to the Victorian bushfires and unknowingly in preparation for the climatic events that affected NSW, Queensland and Victoria in late 2010 and early 2011 the resource kit, The ALIA Guide to Disaster Planning, Response and Recovery for Libraries was produced.
2010 was the year ALIA could have been hosting IFLA. In its stead ALIA hosted the tremendously successful ALIA Access Conference in Brisbane.
And 2010 saw ALIA present its highest award, the HCL Anderson Award, to Jan Fullerton, the retiring Director-General of the National Library of Australia.
Our financial performance.
The 2010 financial statements show that ALIA delivered a deficit of $551,281. This is the third time in four years that ALIA has run an operating deficit. The deficits for the other two years were of a similar magnitude. ALIA is not an organisation with unlimited reserves so it is critical that this trend is reversed. I would like to provide some guidance on the 2010 results and the plans the Board of 2010/11 has set in train for the future.
2010 saw a number of factors come into play simultaneously, a perfect storm if you like.
1. The impact of the Global Financial Crisis. The GFC had a two fold impact on ALIA’s finances. Firstly, it reduced the value of ALIA managed fund investments, and secondly it reduced the value of income received from these investments. By way of example the difference in return from our investments between 2009 and 2010 was approximately $175,000.
2. Loss of key personnel. Unfortunately, ALIA’s Finance Director left the organisation at a critical time. Due to the circumstances at the time ALIA was left with no alternative but to call in contractors to assist managing and reporting the Association’s finances.
3. Financial management system. Some years ago ALIA invested in an Enterprise Resource Management System used by a number of not-for-profit organisations. While this system has proven to be effective for managing membership, it proved not to be as effective as a financial management system. After some rigorous processing and report testing a decision was made to revert to MYOB. The testing and conversion of the finance data occurred during the period when contractors were assisting ALIA. Budgeting under these conditions was also problematic. The costs of contractors to assist with managing the Association’s finances and convert the data from one system to the other exceeded the normal salary costs attributable to the then Finance Director.
Addressing our financial performance.
The Board of Directors has a fiduciary responsibility to members of ALIA to ensure ALIA is well managed and remains solvent. While ALIA is in a sound financial situation, the Board of Directors has taken steps to ensure the trend of operating losses is reversed. These include:
• Running a balanced, business unit focussed, budget for 2011
• Hiring a Chief Financial Controller with experience in a not-for-profit membership based organisation
• Hiring a Chief Operating Officer who’s primary responsibility is the efficient operations of National Office
• Reviewing expenditure and better managing assets
• Reviewing investments and implementing an investments policy that aims to ensure ALIA invests in secure, low risk investments while at the same time maximising returns
• Effectively managing cash flows
• Obtaining additional financial support from partner associations to assist us with our broad industry based advocacy and lobbying work, eg NYR
• Investigating additional revenue streams
ALIA is of course a membership driven organisation. While the Board has taken the measures outlined above, it is equally important for our membership to continue to grow or stabilise at worst. Any significant decline in membership will necessitate further action by future Boards. Equally, ALIA is subject to the vagaries of national and international economies and markets, so it is important for future Boards to review these measures in light of the current financial situation.
As I close my report I would like to thank all our members for their support, involvement, and engagement. I’d like to thank Sue and her dedicated team here at National Office for all their hard, and often unrecognised, work and support.
Finally, I would like to thank my fellow Board members for their investment of time and energy in ensuring ALIA is well governed. I wish retiring Board members Gillian Hallam and Kate Sinclair all the best in their post-ALIA Board endeavours. I thank Andrew Hocken for his contribution to the Board. To the continuing and new Board members Margaret Allen, Vanessa Little, John Bayliss, Julie Rae, Joseph Cullen and Kathryn Cass, I wish you well in what will be another challenging but exciting year for the ALIA.
Graham Black, President (for one last day)
