2012 ANNUAL GENERAL MEETING Reports ... - Karate Canada

4.3 2011-2012 FINANCE COMMITTEE REPORT Report 2012
Craig Vokey
Daniel Piche
David Kelly
The role of the finance committee is to share the workload of the treasurer in managing and monitoring Karate
Canada’s finances and also to provide an opportunity for detailed discussion and consideration of all financial
related matters.
The 2011-2012 fiscal year provided a number of financial hurdles as expenses exceeded revenue by 36,350 for an
accumulated deficit of 45,285. Much of this deficit is attributed to a significant increase in expenses for the 2012
National Championship as well as generally increased overall expenses. A significant problem identified by the
Finance Committee was the overall format of the general reporting procedure which made it hard to identify
issues and problems before they occurred and the fact that the National Championships was held at the end of
the fiscal year. A 20 thousand dollar reimbursement has been received from the insurance company of the book
keeping firm to make up for extra accounting expenses incurred in 2010-2011 due to incorrect handling of the
Karate Canada books in that year.
Going forward, the Finance Committee has recommended that Karate Canada move to ‘Project Based
Accounting’ which will allow the Committee to, at a glance, see the overall financial performance of the
association and to be able to quickly re-allocate resources or adjust expenses should the situation arise. The
Finance Committee also notes that the National Championship agreements worked out in the past are no longer
suitable to the needs of the Association and that this issue is being addressed in both the 2013 Nationals and
the 2014-17 event packages. It is also noted that the loss of a 56,000 grant from the COC for High Performance
coaching and related expenses (“Road to Excellence Program), as of 2008-2009, has never been replaced and it
has taken some time for the Association to adjust to this loss without adversely affecting the High Performance
Program. Lastly, the Finance Committee notes that while expenses continue to climb and the initiatives of Karate
Canada increase, membership income has not increased or kept pace with inflation.
Deficit reduction is now a top priority of the Finance Committee with the development of a Deficit Recovery
Plan which has been approved by Sport Canada. It is anticipated that the current shortfall will be made up over
the next 2 years ,and the 2012-13 budget is so far on track to provide a small surplus. The Finance Committee is
also currently reviewing all financial policies related to expenses and reimbursement, as well as tightening the
budgetary process for 2012-13 and 2013-14. The Committee will also work with the Executive Director and book
keeping staff to reorganize the Chart of Accounts into a more realistic presentation of how Karate Canada is
spending its resources.
In closing, the Finance Committee believes that Karate Canada’s finances are solid and that current funding levels
from Sport Canada will be maintained. Fees must be re-examined to reflect current costs of doing business and
the National Championships must predominantly or solely under the auspices of Karate Canada. The Finance
Committee recommends the reappointment of the Auditors of Parker Prins Lebano.
On behalf of the Committee,
Craig Vokey
Chair
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