EMTA FINANCIAL MATTERS

Closing accounts 2013 – Key facts

- Net result of € -43,573.22- EMTA reserves amounts to less than €100,000.00- All members are up to date with 2013 fees- One new member (prorata temporis for 2013)- Two members offices are closed (Valencia & Murcia)- One member resigned (Sheffield)

Closing accounts 2013 Figures

1rst revised Budget 2014 – Key facts

Expenses : - Less overhead charges (-5% vs 2013)- Savings on all other expenses when possible

Revenues :- Stable (vs 2013), less financial products expected, ads paid- We loose Sevilla in 2014- We still hope new members

Net Result expected: € -39,150

1rst revised Budget 2014 – Figures

Decisions

1. Does the meeting agree to closing accounts 2013?

2. Do you endorse the revised budget 2014?

6

• Looking back at the last 8 years of budgets: an immanent threat in our financial situation

• Do we identify the need to address these problems,to secure the future existence of EMTA?

• How do we bridge the gap? (possible working solutions)

How do we go from here?

7

Analysis of EMTA budget over a 9 year period (2005-2014)

EMTA finances: how to balance expense and revenues

•Urgent need to rebalance EMTA budget in 2015/16•From 2011 expenses have grown (> € 168,000) while revenues fell (< € 128,000)•Top priorities in EMTA Working Program 2014-2016 slight expense increase: ± € 180,000 date 2016;

If in 2015 expenses are in control and 3 new members recruited at current fee (€ 5.000) the outcome would be :

• A revenue level € 140,000 and still• A yearly deficit of € 40,000 > out of business in 2016

Main question: what are the options?

3 options to make a better balance (1)

1. Recruiting new EMTA membersNot easy in times of public funding cuts, time consuming!A need to use networks, seize the right moment, get all the support of members for recruitment of prospect cities.Proposal: set a target to have 34 members by end of 2016

2. Compensation from participation in EU- projects EMTA is reactive, heavily depends on consortia to support become a network partner. Incidental sources of income. Options limited by the available capacity of SGProposal: select only projects that fit EMTA profile ; seek the personal support of EMTA members much as possible

3 options to make a better balance (2)

3. Reviewing the annual feeNote: from 2010 the fee was lowered from € 5,750 to € 5,000.

Options: a.A flat raise of € 1,500 (by 2015, phased or direct) for all members, irrespective of size or capacity, orb.b. A variable raise depending on size of population of a member Option a. is most effective: by a € 1,500,-- raise revenue level amounts to € 160,000,-- with 26 members.

Still not enough to bridge the gap of € 40,000,- and maintain a minimum reserve!

New fee proposal per 2015

1. an initial fee increase for all of € 1,000 per year date 20152. a further fee increase in 2016 of € 500 carried out

automatically, if EMTA by end of 2015 fails to recruit at least 3 new full paying members

This scenario presupposes:

• for 2015 28 members paying € 6,000 and• for 2016 28 members paying € 6,500

If for 2017 and 2018 we assume having 30 members in paying€6,500 the next graphic shows how this affects improvement ofthe cost-revenu balance, leaving a small reserve left, with still anannual deficit to bridge…..

EMTA account expenses revenues new revenues current Reserves new Reserves current scenarios revenues based on2013 € 172.208 € 128.635 € 128.635 € 99.712 € 99.7122014 € 166.400 € 124.750 € 124.750 € 63.062 € 63.062 26 mems x € 5.0002015 € 172.000 € 159.000 € 132.500 € 50.062 € 23.562 if 28 mems x € 6.000 2016 € 180.000 € 173.000 € 132.500 € 43.062 -€ 23.938 if 28 mems x € 6.5002017 € 180.000 € 171.000 € 142.500 € 34.062 -€ 61.438 if 30 mems x € 6.0002018 € 180.000 € 171.000 € 142.500 € 25.062 -€ 98.938 if 30 mems x € 6.000

Summarizing the key board proposals

• Continue to explore sensible ways of economizing• Assist from members for the secretary to recruit new members in

order to achieve additional income • Set a future target on 34 (so 8 more) members over the next 3

years (2014-2017); • Look for smart opportunities to be part of consortia that fits EMTA

profile (Horizon2020) to attract funding• Endorse increase of fees for all € 1,000,-* date 2015, and • A further fee increase in 2016 of € 500,-* that will be

implemented automatically, if by the end of 2015 fails to recruit at least 3 new paying members

*Vilnius excepted with a 50% discount