CTPA Annual Report 2012 - page 38

38
Directors’ Report and Financial Statements
14
14.1
The Cosmetic, Toiletry & Perfumery Association Limited
(Limited by Guarantee)
Directors’ Report
Year ended 31 December 2012
The directors present their report and the audited financial statements of the company no. 398046
for the year ended 31 December 2012. This report has been prepared in accordance with the special
provisions of Part 15 of the Companies Act 2006 relating to small companies.
Directors
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 4.
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 2013
have been set at a level which takes into account the
financial position at 31 December 2012.
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 £10,568 (2011: £5,407 deficit) which,
together with the surplus brought forward of £521,842
results in a balance to be carried forward of £511,274.
Charitable contributions
The Association has continued to support the Look Good
Feel Better Programme in the UK by providing access to
meeting facilities and administrative support to the registered
charity Cosmetic, Toiletry & Perfumery Foundation (CTPF).
In 2012, the CTPA’s Director of Commercial Affairs also acted
as Company Secretary to the CTPF. No charge is made for
these services.
Going concern
The Association has adequate financial resources and is
well placed to manage the business risks. Our planning
process, including financial projections, has taken into
consideration the current economic climate and its
potential impact on the various sources of income and
planned expenditure. The directors have a reasonable
expectation that the Association has adequate resources
to continue in operational existence for the foreseeable
future. The directors believe that there are no material
uncertainties that call into doubt the Association’s ability
to continue. The accounts have therefore been prepared
on the basis that the Association is a going concern.
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