BASICS

IFHTSE operates almost without infrastructure and has no permanent office facilities. Its extremely modest annual turnover (between USD 20 000 and 50 000 for the years 2001-2006), funded largely by member subscriptions, covers mainly administration, but has also provided some assistance, from time to time, for Groups and Committees.

The operating / accounting year is the calendar year.

Budgets and Accounts are approved annually by the Assembly of the Governing Council.

GENERAL PRINCIPLES

Control of the financial affairs of the IFHTSE is ultimately in the hands of the Governing Council. However, for practical reasons:

The Executive Committee manages the business of the Federation in accordance with the resolutions of the Governing Council and takes all measures necessary to conduct the activities of the Federation as laid down by the Statutes. The President, the Secretary, and the Treasurer are empowered to manage the financial affairs of the Federation. [from Statutes Article 16]

The deployment of the IFHTSE’s financial resources is in accordance with the Federation’s objectives, and annual budgets are submitted for the approval of the Governing Council. However, the Statutes do actually specify the main use of funds as being:

to defray the current costs of the Secretariat, also to contribute to the costs of essential travel by members of the Executive Committee in performance of their duties, insofar as those costs cannot be covered in other ways. Exceptionally, similar contributions may be made to the travel costs of chairmen and active members of the Technical Committees. [from Statutes Article 5]

In addition:

the work of the Secretary and Treasurer shall be compensated by honorarium. [from Statutes Article 15]

A general financial policy was formulated at the 20th Assembly of the Governing Council (Melbourne, Australia 1991):

• That liquid or readily liquidatable resources be maintained at a level which would support normal operations for the foreseeable future without serious erosion 
• That resources over and above that minimum be available for specific purposes and that such specific purposes be identified and proposed by a TC, a member body, or by the Executive Committee itself.

This remains the basic principle, but the implied surpluses have not been reliably maintained.

TREASURY AND ACCOUNTANCY

From the foundation of IFHTSE and for the next 30 years the bank accounts were located in Zurich, Switzerland and the Treasurer was normally resident in Switzerland. Financial reporting used the Swiss Franc. The use of the Swiss Franc was a consequence of the Swiss origin of the Federation and the initial generosity of the (Swiss) MAAG Gear Co. in supporting the services of Urs Wyss as the founding Secretary, plus the desire, during the Cold War, to be seen to be ‘currency-neutral’. These circumstances were modified in 2002, since when the situation has been:

• Bank accounts are held in London, England, in USD, GBP and EUR.
• For purposes of continuity and historical comparability the Swiss Franc is still used as the basis for calculation of member subscriptions and the small honoraria payable to the Secretary General and Treasurer.
• Accounts are published in USD
• Accountancy is handled by the Treasurer in Romania
• The Auditor is also located in Romania

Accounts receivable and payable are handled by the Secretary General; cheques can carry his signature or that of the treasurer. A regular exchange of information is maintained between the Secretary General and the Treasurer and transactions and balances are cross-checked frequently before presentation annually to the Auditor.

AUDITORS

Auditors certify the accuracy and acceptability of the Income and Expenditure Account and Balance Sheet, produced annually by the Treasurer, for submission to Assemblies of the Governing Council.