Page 38 - CTPA Annual Report 2011

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The Cosmetic, Toiletry & Perfumery Association Limited
(Limited by Guarantee)
Directors’ Report
Year ended 31 December 2011
The directors present their report and the audited financial statements of the company no. 398046
for the year ended 31 December 2011. This report has been prepared in accordance with the special
provisions of Part 15 of the Companies Act 2006 relating to small companies.
The members of the Board are the directors of the company.
The current directors, and the directors who acted at any time
during the financial year, appear on page 1.
Principal activities and review of operations
The principal activities of the Association are to organise, study,
protect, promote and further the interests of the cosmetic,
toiletry and perfumery industry in the United Kingdom.
These remained unchanged during the year under review and
all the Association’s work came within that general description.
In carrying out this work the Association involved itself deeply
in the work of the European cosmetic trade association,
Cosmetics Europe (formerly known as Colipa). It is the
Association’s intention to continue to operate within the
same general framework.
The Association’s financial policy is to match income and
expenditure over a period of years, subject to the need to
maintain adequate working capital. Subscriptions for 2012
have been set at a level which takes into account the financial
position at 31 December 2011.
Risk management
The Association has identified a number of risks including a
potential shortfall in income from member subscriptions,
an IT systems failure and/or security breach leading to a
break-down in the expected membership service levels, a breach
of UK/EU competition law by either our staff or members whilst
on Association business/premises and a conflict of interest
and/or related party transactions with Board members. Internal
controls have been developed to reduce these risks including
the alignment of budget with membership renewal levels,
the funding of an IT systems business continuity programme,
the highlighting of the need for staff and members to conduct
themselves according to the CTPA’s Competition Guidelines
which are re-issued, highlighted and reviewed at appropriate
times. These controls are reviewed periodically by the Board of
Directors. Regular enquiry will be made of Board members to
ensure there are no conflicts of interest between CTPA and its
Board members.
Financial statements
The financial statements show a deficit for the year after
taxation of £5,407 (2010: £4,423 surplus) which, together
with the surplus brought forward of £527,249 results in a
balance to be carried forward of £521,842.
Directors’ Report & Financial Statements