Dear ExCo Members,

After hearing the requests of LOC to pay the deficit of €37.111,87 at the EXCO meeting 22 January 2016 in The Hague it was decided to propose three options to decide for ExCo members concerning support to LOC:

Please choose one option the latest until 30 January 2016

OPTION 1

EXCO gives an absolute positive answer and will pay the deficit of €37.111,87. Due to our delicate cash flow situation we will pay that amount in 12 monthly installments of €3.092,66 beginning at the end of January 2016 and ending end of December 2016. This options means that ISOCARP will have paid in total approx. €70.000 to LOC plus paid our own costs (approx. €20.000) so the ultimate financial result of the congress will be for ISOCARP approx. + €10.000 (instead of €50.000 that is in our budget).

OPTION 2

As EXCO and LOC were working on the congress from the beginning as a ‘two-unit’ it could be a choice to pay 50% of the still existing deficit. This option means that ISOCARP will pay another €20.000. Due to our delicate cash flow situation we will pay that amount in 6 monthly installments of €3.333,33 beginning at the end of January and ending end of June 2016 (in this financial year). The ultimate result of the congress will be for ISOCARP approx. + €30.000 (instead of €50.000 that is in our budget).

OPTION 3

As it is implemented in our budget ISOCARP wants to keep a positive congress result of €50.000. We will eliminate the extra hours of our secretariat from the congress accounts and pay – as we agreed –  every result above €50.000. So we will pay LOC € 3.626,89 (elimination extra hours of HQ) + €1.857,71 (extra fair share) = €5.484,60. With this payment – that we can make in February – we fully act in accordance with the agreement (contract) and our budget.

REMARK_1

As EXCO strictly has to control the expenditures relating to the yearly congress to avoid losses and should approve every expenditure exceeding the approved budget, it means that choosing for option 1 or option 2 will need a motivation in the annual account 01/07/2015 – 30/06/2016 that we will present for approval at the Annual General Meeting at the congress in Durban.

REMARK_2

Our approved budget 01/07/2015 – 30/06/2016 foresees a positive result of + €1.850. On 31/12/2015 (half year) the result is + €9.020,04. As there are no new projects nor new financial income before 30/06/2016, it means that choosing for option 1 or option 2 probably will lead to a negative result for this financial year.