2012 Minutes for planning session - Squash BC

Financial Report: Bill VipondFinancial Status as of April 30, 2012See Financial PDF’s attachedDeferral of Special Intake Gaming Funds transferred into 2012-2013 totalling $23,200. Wereceived these funds on March 28, 2012. These deferred funds were spread over thevarious programs within the budget with the applied for amount which we should find outthis summer. SBC has budgeted the total gaming funds as follows; $16k to Juniors, $7k toHP, $3k Post Secondary, $3k Coaching, $2k Officiating, and $14k Marketing &Communications (Publications). This sets some parameters for the proportion of spendingin the sub categories (i.e. 40% to Junior Programs and 15% to High Performance).Bill Vipond prepared a report to give an accurate picture of the financial health of Squash BC, andspecifically provide rebuttal to Tim Bale’s comments raised in point 4 of his technical report:Comments from Tim Bale on Squash BC’s Financial ReportingTB: Surplus cash is drained during the summer months as we wait for government money to come inand membership revenue does not start being collected until early October.V-P Finance: Our auditors consider the surplus cash drain as unavoidable. It is due to the seasonalactivity of our sport. The auditors are completely comfortable with our surplus cash drain situation.TB: We should be budgeting for a modest surplus each year to increase our financial strength.V-P Finance: The auditors say a very modest surplus could be budgeted to cover future obligations inthe event of bankruptcy. The minor surplus could accrue and be earmarked for severance if SquashBC goes out of business. Being a non-profit organization, the auditors feel any surplus which is notspecifically earmarked could jeopardize our non-profit status and future government funding.TB: The custodial function of protecting our assets could be improved by opening a separate savingsaccount and by implementing all auditor recommendations.V-P Finance: Surplus cash is invested in GICs which are segregated in Squash BC’s bank account atVanCity. In the opinion of our auditors, a separate savings account would be no more secure than ourGICs and would pay a lower interest rate than GICs. Our auditors have confirmed we haveimplemented their recommendations in a manner to their satisfaction. The auditors acknowledged wemust differentiate between what is practical and what would be nice in a perfect world. The auditors’report for 2011-2012 does not contain any recommendations; this is further evidence of their comfortwith our financial modus operandi.TB: Financial reporting could be improved by maintaining a single set of books with a more advancedaccounts structure.V-P Finance: Our auditors confirmed Squash BC maintains only one set of books and in their opinionthe detail of our financial records is completely appropriate for the nature of our operations.22