Secretary/Treasurer’s Report 2004/2005.
Income exceeded Expense by $11,324, an increase of $7,847, or 247% compared to the previous year’s $3,477. If we deduct the Skins $10,000 the figure is $1,324, a decrease of 62% The Moosehead $515 for ‘specials’ sales and the $400 bonspiel sponsorship are being added to the 2005/2006 revenues.
There appears to be little that can be done to increase the bar sales although I would recommend that the ‘cheaper’ beers (Labatt Honey Ale, Carlings) could be sold as a ‘discount beer’: I think I could rig that on the cash register. We shall require a clear, written agreement with our beer suppliers and major sponsors as to the deliverables by each party. We also need to be clear as to what is, and what is not, taxable. Signage sales should be promoted to all who participated at the Skins event and to any others interested; we need to review the location of the various signs for best display and consider in-clubhouse signs. Membership and Pay As You Play options need aggressively pushed and we need a strategy to offer an inducement to become a member. Membership income is down and we need a strong advertising campaign to try to increase adult memberships. At the same time we need to ensure control of locker rentals. The whole area of ‘Ways and Means’ needs a fresh and innovative approach. There is more scope here for increased income than in Membership: Similarly, House and Ice rentals need strong promotion as do Suppers for events being held at the club. Each summer needs one or more major rentals and it is crucial that we get some Christmas parties.
It can be anticipated that House, Ice, Repair/Maintenance and Ice Making costs will stabilise failing any major events next year. We should continue to benefit from reduced power costs, particularly if we continue to improve control of the heating and lighting systems.
Completing a downstairs furniture change will be a significant cost, recoverable only if we increase the number of people (Pay As You Play, Rentals and Members) using the club lounge and increasing the time that they spend there (Canteen Sales).
Overall, there was long and hard work required to benefit from the year as much as we did. Supporters of the club rallied to the Skins organisation and the executive performed amazingly well considering that it lacked, and lost, crucial members for a variety of reasons. Despite this we had a significant cash flow from operation that allowed a great deal of work to be done and a profit was made from a difficult situation. Much of the credit must go to the President.
Jim DuncanDiscussion: Attached are numbers from the Financial Review for May 2004 to April 2005 with the ‘Change’ and ‘% Change’ added to highlight the differences between 2003/2004 and 2004/2005. There is a second spreadsheet showing results from the past eight years.
Overall, the results for last year are positive, but show numerous areas of concern. In all, Profit ($6,500 property taxes paid but outstanding taxes extracted) was $11,324, which is up $7,847, from $3,477. Expenses dropped $3,175 from $52,820 to $49,645 while Revenues increased by $4,672 from $56,297 to $60,969. In Assets and Liabilities, we have increased our Assets to $27,522 from $10,050 ($17,472) and increased our Liability from $802 to $2,841 ($2,039). As a result our Assets over liabilities increased $15,300, from $9,246 to $24,680(before taxes).
Remember that we carried out extensive work on the electrical system last year and that this cost us, even with the unstinting generosity of Noranda and the volunteers. Regular curling income was lost during the Skins Games and the ice making costs were considerably increased. We should have seen a related cost in electricity consumption due to this, but the opposite was the case: Next year’s power costs should tell the tale, we hope the decrease is the affect of the wiring changes and a continuing benefit.
Rentals, Ways and Means, Bar Sales and Office Costs need closer control this next season. The changes in use of the cash register and assigning costs to other accounts have also obscured some of the benefits we expected. This should show up next year.
‘Revenue,’ Canteen Sales are down $6,959, or 19%, Cost of Sales was down $2,898, or 17%, probably due, in part, to beer & liquor donated from the Skins . Canteen Gross Profit was down $4,216, or 20%. Membership income was down $691, or 7%. The number of members is up: This could reflect an increase in seniors, afternoon players and Little Rocks. Rentals were down $2,455, or 43%, Lockers rentals were down $150, or 32%, and Bonspiel and Supper income was down $1,439, or 39%. We had Total Revenues of $60,969 compared to $56,297; an increase of $4,672, or 8%. Within this were Donations of $21,018 covering signage sales and the Skins donation. The accounting for Pay as You Play ($2,153.70) as a separate account and Wall Signs as donations in 2003/2004 has skewed the 2005 numbers.
‘Expenses’ Total Expenses were down from $52,820 to $49,645, a decrease of $$3,175 or 6%. Salaries and Benefits were down by $5,263, or 76% and Electricity down a whopping $4,589, or 37%! Insurance was down $1,850 or 30% The Telephone cost was down $169, or 15%, and Total Expense was down $3,175, or 6%. Ice Making costs were up $1,196, or 78%, with the extra work required for the Skins and the Ice Plant maintenance was up $1,334, or 54%, with an overhaul of the ice plant completed. Maintenance and Repair was up $2,507, over 20%, but includes the work to accommodate changes in the electrical system. An increase of $687, or 79% in Office costs reflects the new printer and ink cartridges as well as the printer itself. I am not clear why Bank Charges are up $333, or 24%, but it may be the inclusion of the Debit Machine charges: These may need to be stopped by a call to the service provider at the end of the season or else we continue to pay about $30/month. Professional Services are up $360, or 25%, and that is due to my errors in December. General Expenses were up 38% for unknown reasons.