Background to proposal to increase Membership subscription fees
That the annual membership fees for 2020-2021 be increased to $AUD190 plus GST and the equivalent for New Zealand Members at the exchange rate applying at the end of the financial year.
This resolution follows from the work undertaken by Council in relation to the College’s ongoing financial viability and is consistent with the College’s strategy in relation to sustaining College governance and efficacy.
Over recent years the College has continued to enjoy a growing reputation for delivering excellence in Veterinary Science through its’ Membership and Fellowship examination system. This growing reputation has led to increased membership, diversity, and a corresponding need for the College to improve the way it serves its members.
Council has reviewed its direction, processes and structures to ensure that the College continues to deliver on its promise to shape the standards of professional excellence within the veterinary profession.
To this end, Council have commenced a strategic process which will support the College to evolve systems and processes to become contemporary and sophisticated to the point where they will initially meet, and ultimately exceed the expectations of the Membership and Fellowship Community.
Part of this process has involved Council tasking the Finance and Risk Committee (FRC) to consider the College’s income and expenditure in line with the projected growth trajectory and complete a financial analysis with likely scenarios and corresponding strategies that address these scenarios.
The FRC presented to Council in February 2019, outlining several alternatives that illustrate potential financial futures for the College. Each scenario indicated that under the current models of business the College would likely consume its reserves over the course of the next 10 years or so.
Ultimately, the future of the College will be determined by the decisions taken to secure its’ financial viability and ensuring that the value of benefits available to members exceeds the cost of membership. A corollary to this is Council facilitating an environment that supports innovation and the capacity to provide services efficiently and effectively for the benefit of members.
The greatest impact upon the future of the College will be the ability of the organization to leverage and release the latent value of Members within the College community. This will require a strategic commitment which is supported by access to resources.
No single action will achieve the desired result. Rather, a suite of integrated and coordinated activities need to be undertaken. This includes the renewal of strategy, development of membership services, renewal of infrastructure, and collaboration between all sections of the College.
The FRC recommends one of the first actions to be given consideration is increasing revenue by $60,000 per annum, year on year for the next five years. This will provide the initial revenue that will protect College and Chapter reserves whilst providing the necessary time to think, consult and deliver a plan that will support the future of the College into the foreseeable future.
A review of College subscription fees against the costs of administering the College indicates that there is a deficit. This deficit is currently supported by directing surplus revenue from other activities into the College and away from the development of fundamental infrastructure (such as online collaboration spaces, document management, web functionality, and Customer Relationship Management systems). By increasing College fees from AUD$165 to AUD$190, this deficit would be eliminated, and the investment of revenue would support urgently required infrastructure, systems and processes that will deliver services to members.
Zoe Lenard President
Shane Klintworth CEO