Finance

Ordinary grants

Your local institute is funded by the CII on an annual basis via an Ordinary grant paid in two tranches – the first in January and the second in July.

This Ordinary grant is paid in accordance with Article 6 of the CII’s Charter which states:

The Institute shall support the activities of independent insurance institutes which have been or may be established locally in any part of the United Kingdom, the Channel Islands or the Isle of Man by Members and which have been approved by the Council insofar as those activities will further the objects of the Institute. In particular the Institute shall contribute annually to the funds of each such independent institute a grant at a rate or rates to be decided from time to time by the Annual General Meeting and may make such other contributions as the Council may from time to time determine.

The Ordinary grant is performance related, in line with the protocol previously developed by a volunteer working party known as the Grants Working Party.

The amount you receive is based on a percentage of your overall local membership taken at June of each year, and your performance based on the results of your annual assessment this will be between 10% – 14% of your members’ fees.

This new funding model seeks to share the available funds equitably, in turn reinforcing best practice and supporting the provision of member services across the UK.

Please note if your institute holds reserves of more than 12 months’ operating costs, a reduction to the second tranche of the ordinary grant will be made.

Your Treasurer will have overall responsibility for your funds; an overview of a Treasurer’s typical responsibilities can be viewed here.

An overview of previous years funding can be found below.

Special grants

In addition to the Ordinary grant awarded each year, local institutes may also apply for a secondary grant known as a Special grant.

A Special grant is to cover planned exceptional expenditure that cannot be met by the Ordinary grant and are only awarded for exceptional expenditure for example an unsupported President or the development of additional CPD.

These are provided as a one-off payment and are awarded on a case-by-case basis, subject to Local Institute Assessment & Funding Panel (LIAFP) review, and CII Board approval.

Please note that Special Grants will not be awarded to cover institute staff and office costs.

Before submitting a Special grant application, local institutes should firstly assess the level of accumulated reserves to ensure these do not exceed 12 months operating costs. Where they do, the (LIAFP) would look for these funds to be utilised in the first instance and any successful Special grant application would be adjusted accordingly.

To apply for a Special grant you need to submit both Special Grant Applications Forms: A and B which are released to the network every August.

Application forms for 2018

Assessment and funding panel

The Local Institute Assessment & Funding Panel is a volunteer working party made up of local institute volunteers that exists to review and make recommendations for the transparent distribution of CII allocated local institute funding in relation to Ordinary grants, Special grants and local institute reserves.

The panel also assumes responsibility for reviewing and making recommendations with regard to the annual local institute assessment criteria.

The Local Institute Assessment & Funding Panel is a non executive panel and is accountable to the CII Board. A report on the activities of the Local Institute Assessment & Funding Panel is produced for the CII Board on an annual basis.

The panel is chaired by Clair Brand, Royal Tunbridge Wells. Committee members include; Richard Cockbain (Perth & Dundee), Paul Exton (Sheffield), James Peace (London) and Katy Thorne (Newcastle).

Annual accounts

Every local institute is required as part of its constitution to keep account of all its financial transactions and submit a statement of accounts at each Annual General Meeting.

It is the role of the treasurer to report on the financial standing of the local institute at each council meeting in the form of a statement of income and expenditure, a balance sheet and cash flow statements.

The CII’s financial year runs from 1 January to 31 December and this is reflected by every local institute with all local institutes submitting their annual financial returns to the CII by 31st May of each year as part of their annual returns.

It is recommended that a budget is prepared at the start of each calendar year in conjunction with the incoming president and treasurer. The budget should be apportioned according to the institute’s membership requirements.

Once the budget has been prepared and agreed upon it should be fully discussed at each council meeting with adjustments made to reflect any changes on a meeting on meeting basis.

Please note should a local institute cease to be an unincorporated association and become a limited liability company then there are requirements relating to the production of accounts that would need to be observed and these would need to be taken into account in conjunction with the auditors. In case of difficulties the Finance department at the CII might be able to assist – contact your Regional Membership Manager in the first instance.