NZNO budget shows small surplus.

NZNO has a 2008/200g after tax budget surplus of $20,000. The board approved the annual plan and finalised budget, presented by business services manager Kevin O'Neill and chief executive Geoff Annals.

This year's budget has a before transfers and tax surplus of $220,000, compared to the 2007/2008 before transfers and tax surplus of $861,000. The $641,000 reduction is due to subscriptions increasing by $830,000; staff costs increasing by $1.29 million; and printing and stationery increasing by $145,000.

Increase in subscription revenue

The increase in subscription revenue was due to the 3.5 percent fee increase last year and the influx of 1000 new members. Membership is budgeted at 41,500 for the 2008/2009 year and currently stands at 41,300 and growing.

The vast bulk of the increase in staff costs is due to an extra 12 positions above last year's budget. The rest is due to increases due to progression through salary steps and a budgeted four percent increase to all salaries in November 2008.

Printing and stationery costs have increased due to more mailouts to members. This budget year will also see promotion of NZNO's centenary and more activity by sections and colleges.

The budget was prepared with input from all staff, with Little adjustment from the original budgets submitted, the board was told.

The success of the budget was very dependent on the ability to meet the subscription budget, but with a good start to the year, this did not seem to be a concern, O'Neill told the board. While the budget provided only a small surplus and there were no transfers to reserves, for the first time in many years, it was building up NZNO's internal structures to deliver the level and types of activities members required.