OPERATING PROCEDURE:

OP2 Rev 3

SUBJECT: FINANCIAL MANAGEMENT
Issue/Draft
Rev. 31.

Date
14 June 2018

Details
Version agreed tocorrespond to v4 of theConstitution following
Organisation Review
2015-2017

Status/Approval
Approved by postal
ballot 31 October 2017and implemented
14 June 2018

Definition

ICNDT is a not-for-profit association registered and with a bank account inVienna, Austria.
2.

Responsibility

Members share responsibilities for costs and financing of activities as follows:(i) Individual member societies (or their nominees) are responsible for

their own costs incurred in participation in ICNDT activities andmeetings, including registration fees for the conferences, travel, hotelsetc.
(ii) ICNDT Officers (or their own Societies) are responsible for their owncosts.
(iii) The costs of the ICNDT Secretariat are carried by the NDT Society thatoffers to provide the Secretariat and is duly elected, or by othermember societies which volunteer support.
(iv) The complete financial responsibility for the World Conference

including any surplus or loss incurred rests with the host country.
However, the host is obliged to provide facilities for meetings of ICNDTand its bodies during the World Conference.
(v) ICNDT may receive donations from Member Societies, external bodies

or from the host of the World Conference. In addition, it may collectfees from members (see clause 5 below) and from participants in its
activities (including but not limited to the MRA, PCBA and EQB).
Secretariat: The British Institute of NDT, Midsummer House, Riverside Way, Bedford Road,
Northampton NN1 5NX UK
Tel: +44 1604 438300 Fax: +44 1604 438301 Email: gensec@icndt.org
The ICNDT is registered as a legalised Association with its seat in Vienna, Austria.
ICNDT Registered Office: 1230 VIENNA, Deutschstraße 10
Chair: S K Babu Email: chairman@icndt.org

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(vi) Regional Groups receive support from ICNDT. They are obliged toprovide facilities for meetings of ICNDT and its bodies when agreed
during their own Regional Conferences.
3.

Uses of ICNDT funds

The Treasurer, in conjunction with the Executive Committee, will prepare an
income and expenditure budget including proposed fees and proposed
support to Regions. This will be presented to the Annual Meeting of ICNDT forapproval.
Permissible expenditure includes:(i) support to assist running the Secretariat, including:a) clerical expenses;b) meeting rooms;c) travel and accommodationd) professional support;(ii) the provision of funding to young NDT professionals in membership ofnational NDT societies for travel and attendance at WCNDT
conferences;(iii) assistance towards the formation of new national NDT societies andRegions;(iv) projects in accordance with the ICNDT Strategic Plan;(v) support to each of the recognised Regions of ICNDT, which willcomprise the agreed percentage of the total fees collected from theRegion (initially 60% but subject to review in subsequent years by theICNDT Annual Meeting) plus any additional Regional contributions
received.
4.

Operation(i) ICNDT funds will be held in a bank account in Austria;(ii) Payments from the bank account shall be executed by the Treasurer,

following prior approval by two of: the Chairman, Past Chairman,
General Secretary;(iii) Accounts shall be maintained by the Treasurer;(iv) An annual financial report, approved by the elected Auditors, shall bepresented to the Annual Meeting of ICNDT.
5.

Membership fees

5.1 Background
It was agreed in principle by the ICNDT General Assembly in Munich 2016 toadopt a new fee structure based on the ability of societies to pay more/lessthan the previous flat fees.
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Consideration of the fee structure has taken into account the following:(i) All members are established as not-for-profit entities;(ii) NDT societies – whether measured by membership (number ofindividuals, number of certificate holders or number of corporate
members) or financial turnover (perhaps 1000 Euro up to tens ofmillions of Euro) – vary hugely in size;(iii) Some operate only locally in their own country whilst others operatearound the globe;(iv) The larger Member societies are quite wealthy and all survived theeconomic downturn. Most of these Societies have already indicatedthat they are willing to pay the fees proposed;(v) In contrast, the smaller societies struggle for viability but theirmembership of ICNDT is particularly important;(vi) The fees should remain relatively modest in comparison with the value
provided by ICNDT and its Regions to support:• Members, both in well established NDT societies and those thatare small;• Individuals working in the profession around the world;• NDT globally;• The public good.
5.2 Fees
Annual fees are based on the size of the Member society.
Members (Full and Associate) are categorised as A, B, C, D or E and pay
the corresponding fee. A single fee will be levied covering ICNDT
membership and membership of Regional Group(s).
Associate Members will pay 75% of the appropriate fee for their category.
The annual fees cover membership of ICNDT and Regional Group(s) from1 January to 31 December each year.
Fees agreed for the first year of the new fee structure are as follows:
Category

Size of the Society

Gross Annual Income (€)

Fee (€)A

Extra large

GAI >1,500,000

4000

BLarge1,500,000 < GAI >750,000

2400

CMedium

750,000 < GAI >300,000

800

D

Small

300,000 < GAI >20,000

400EExtra small

GAI < 20,000

100

Fees for subsequent years and the proposed split into ICNDT and regional
components will be presented for approval at the ICNDT Annual Meeting.
OP2 Rev 335.3 Responsibility for collection of membership feesFees may be collected by ICNDT or, if it chooses to do so, by the Regional
Group. When a Regional Group chooses to collect fees itself, it will beresponsible for this and will be responsible for paying the appropriate share toICNDT by the due deadline, below.
5.4 Process for determination and collection of fees
1) IEC proposes fees for year x+1 and the division of fee between ICNDTand the Regions. This is voted on at the ICNDT AGM in Jan/Feb of year x;2) During year x before 31 August, each Regional Group separately decides
whether to accept the ICNDT recommendation of its Regional component
or to increase or decrease this;3) By the end of Sept in year x:a) Each Member (Full and Associate) will requested by ICNDT to confirm
its category for the following year, taking account of its sustainable
Gross Annual Income and its own degree of regional and internationalengagement. (Gross Annual Income takes account of all NDT-related
activities of the member organisation including its divisions andsubsidiaries);b) Members that wish to participate in more than one Regional Group willconfirm this to ICNDT and will then be due to pay additional Regionalcomponents;c) Regional Groups will be asked if they wish to take responsibility for theinvoicing and collection of the fees or use the services of ICNDT. This
would be free of charge in both cases;
4) The appropriate total due for each member for year x+1 will be tabulatedby the ICNDT Secretariat by 30 Nov in year x, along with the payments
due to be transferred to each Regional Group/ICNDT. These figures will
be used by the ICNDT and Region’s Treasurers in budgeting income andexpenditure for year x+1;
5) Invoices will be issued by ICNDT or the Regional Group by the end ofJanuary in year x+1. Payment will be due in three months, i.e. by 30 April.
Transfer payments between Regional Groups and ICNDT will be due by
31 May.
5.5 New members
New members must pay their fee within 3 (three) months of the date of theacceptance of their application to join ICNDT. Membership is subject to thepayment of the appropriate fee.
New members pay a pro rata amount for membership in the first year,
dependent on the date of the acceptance of the application. For example, amember accepted for membership in June, for membership commencing
1 July, will pay 6/12 = 50% of the annual fee.
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5.6 Failure to pay
If any fee is not paid after three written reminders (e.g. by e-mail), at intervalsof not less than 1 month, the member automatically loses the privileges ofmembership (including the vote at ICNDT meetings, membership of Working
Groups and Committees, access to concession rates for the WCNDT andRegional Conferences. Furthermore, the ICNDT General Secretary andRegional Group are authorised to exclude the member from membership.

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