Page 74 - Demo

Car and travel expenses
Often the institute will spend considerable amounts of money on motor vehicle eets. The following questions need to be asked:
O Are the existing cars now of an age where expenditure on repairs etc. can be expected to rise?
O Will members currently needing cars need them in the future?
O Will members not currently in need of a car need one in future?
O Will the type of car needed in future be different to that currently used?
Salaries, pensions receivable and other income
As members of the institute grow older, the number of members earning salaries will decline and such income will decrease. Often the income will be replaced by pensions but these usually will be much smaller.
When forecasting future income, a number of factors need to be taken into account and a number of questions asked:
O O
O O O
O
Will any members of the institute who are earning salaries or receiving stipends at present need to give up work in the near future to carry out an administrative role within the institute?
Has a detailed analysis been done showing the number of members reaching retirement age in the next few years, showing the timing of such retirements and their impact on income levels?
Have voluntary national insurance contributions been paid for all members to ensure their entitlement to a state pension?
Will lump sum pensions be received in the near future? If so, has thought been given to what will happen with these sums?
Has thought been given to the value of pensions that might be lost over the next few years because of deaths? Often these will be the larger pensions
Has a contingency been built in to future projections to try and take account of the uncertainty surrounding state pension levels?
It should be assumed that state pensions will fall in real terms in the future
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Chapter 4