Finance update Jeremy Boadle - Chairman Nexia International Finance Committee
Finance update Introduction Referral fees Annual contribution Payment of Nexia invoices Quality control reviews Expenses policy Debtors In conclusion The Nexia Finance team
Introduction Review of Finance Function New reporting and procedures: -Budget, cash flow management & quarterly reporting -Finance procedures -Quality Control Reviews – cost recovery -Expenses policy
Referral fees Independence / conflict of interest perceptions in certain jurisdictions Referral credits terminated effective 1 July 2008 Referral fees now terminated effective 1 July 2009 But commercial need to capture referral activity across the network
Annual contribution Based on gross revenues for 12 month period 1 July – 30 June for year preceding the Nexia financial year (1 November - 31 October) Reported in local currency - converted into US$ at 30 June Contribution levied in two six monthly instalments
Annual contribution Contribution formula: RevenueFactor < US$45k0.15% US$45k – US$90k0.10% US$90k % Contribution expressed in GBP Minimum fee £2,000
Finance procedures – payment of invoices Pay within 30 days Invoice number/payee to be clearly referenced Bank charges incurred in transfer payments must be borne by remitter Exchange control restrictions – communicate with the Finance Officer
Quality control reviews Cost arising from QCR programme: Time spent by reviewer – met from Audit Committee budget at 50% of standard charge rate Travel costs – recovered through a fixed charge to firm under review (based on a scale reflecting firm turnover/size) Accommodation and meals – met by the firm subject to review
Expenses policy – see Covers reimbursement of Nexia incurred expenses for: -Board - Audit, Tax & Communications committees Expense claims must be: -accompanied by supporting documentation -submitted within 3 months
Debtors Statements of Account circulated quarterly Reviewed by Board of Directors Appropriate action for consistent non-payment – potential termination of membership
In summary Improved reporting to Board & Committees Financial rigour The Secretariat now meeting it’s obligations Members to meet their obligations
The Nexia Finance team Finance Committee (Directors): -Jeremy Boadle (Chairman) - Smith & Williamson -Ricardo Rodil - Nexia Villas Rodil -Oussama Tabbara – Usamah Tabbarah & Co. Finance Officer:Sarah Kennedy /