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Board Report: 28 July 2013

Dear Clubbies

Board Report: 28 July 2013 (teleconference)

Key points covered included:

Financials: Final results for the year to 31 June 2013 were presented.  Since the Board meeting, the SLSNZ Auditor, Munro Benge, has completed their detailed assessment of the organisation's financials and associated processes.

As previously reported, the Board had been expecting , subject to year-end adjustments a loss of around $100,000 on a turnover of $9.7 million,  a small slip back from the breakeven position last year. As it has eventuated, those adjustments have added another $160,000 to the income that we will carry over from 2012/13 to 2013/14, taking the total carried forward to $766,000, and this has taken the final loss to $273,000 on a turnover of $9.5 million.  This is taking a deliberately conservative approach and of course this income is not 'lost', it will boost the results for 2013/14.

While disappointing, it is against a backdrop of a very difficult year with income declining by $910,000 (8.7%) so the loss could have been a lot worse if remedial action had not been taken - and this action will now put the organization in a much better position for the coming year.  Looking at this in a bit more detail:

  • Total Income for 2013/14 is budgeted at $9.315 million - a decline of $200k (2%) mainly due to not being a middleman for Arancia IRB's ($360k less income, matched by less cost).
  • Total Expenditure for 2013/14 is budgeted at $8.261 million - a decline of  $1.527 million (15.6%), primarily due the following reductions:
Staff costs $6090k
Overheads   $257k
Cost of goods sold (Arancia IRB's) $360k
Design & marketing $100k
High Performance sport                     $126k
National sports events                       $63k
Fundraising costs                               $70k
Legal costs                                
$50k
 

$1626k

With the benefits of a decreased cost base , the Board is budgeting an operating surplus of $1million and is confident it has now positioned the organisation to achieve this, and stretch targets are being established for staff to do even better. 

Clubs will shortly be provided a copy of the audited financial statements for the year, along with a commentary on the main items of interest.

Staffing update: Vacant roles for a CDO for the Coromandel Peninsula and a Programmes and Services Manager in the South Island were advertised in late July and appointments about to be announced as I write this. 

Since the Board meeting Mark Weatherall has resigned from the role of GM Club Development to take up a role as Chief Executive of Canoe Racing New Zealand.  Rather than search for a direct replacement for Mark, the Senior Management Team is taking the opportunity to assess the optimal staffing mix needed to deliver the outcomes required of the organisation moving forward. The Board expressed its thanks for Mark's work as Acting CEO while Paul Dalton was overseas.

National Office: the Chief Executive has confirmed the decision to relocate the National Office.  Reduced staff numbers have lowered floor space requirements allowing a lower cost option to be viable.  The move is planned for the end of September.  The national office has been located in its current position for around 20 years and holds many memories of staff and members that have passed through.  Staff will be busy preparing for the move over the next month.

Board appointments process: At the meeting the Board was updated on the progress of the Board Appointments Panel (BAP). Two weeks after the Board meeting the BAP interviewed a short list of high calibre applicants for Board positions on 10 and 11 August. 

The remaining dates leading up to the AGM are as follows:

Date

Action

Wed 21 August

BAP decisions due to CEO to prepare communications to clubs.

Closing date for applications for President

Deadline for clubs to advise of their delegates and any Agenda items

Fri 30 August

Deadline for SLSNZ to provide clubs with the AGM Agenda and SLSNZ financials

Commercial update: the Board received an update on a number of commercial opportunities in progress or planned.  With the conservative approach to budgeting for the 2013/14 year, these opportunities have not been included in budgets and may provide upside benefits if they come to fruition. 

Grants: the grant application programme is a major focus for the organisation currently.  Work continues on building relationships with the main grant funders.  Current applications are being made for summer programmes as outlined in regional plans and national event programme.  Grant acquittals are up to date.

Fundraising: Lottery 21 has been drawn and the audit and other final work is being completed.  The winner of the lottery also won the $10,000 bonus prize taking up much of the profit.  Staff are considering SLSNZ withdrawal from future lotteries so as to focus on more productive fundraising activities.

Work continues on planning for the 2013/14 National Summer Appeal and Jandal Day.  Club Chairs were updated on plans at the recent round of Club Chairs meetings.  A notice has been sent to clubs via Regional Managers explaining the dates and basis for the Appeal.  Key activities include street collections, online "peer to peer" fundraising campaign, club actives, business and school collection and SLS Partner collections.  Clubs have been asked to provide information about their anticipated involvement in the Appeal.

The SLSNZ/SLSNR joint subcommittee: has representatives from SLSNZ and SLSNR Boards.  It has a focus to build a more sustainable future for all our members.  Previous minutes have been circulated to Clubs.  The subcommittee is scheduled to meet again on 29 August.

Honours and Awards: the National Honours and Awards committee met by Teleconference on 21 July.  A large number of applications were received and reviewed following an extensive process.  Congratulations to all those who will receive awards - and I look forward to the 'Awards of Excellence' following the AGM when these will be presented.

Surf Education: is ahead of schedule with bookings opening for Beach Ed in May rather than August of previous years.  There are 13,000 children currently booked for the programme.  Club agreements for venues are signed and notification will shortly be received from Water Safety New Zealand for funding levels.  Applications for Surf Education instructor positions are now open.

The National Sport Committee: the Board received a report from the Sport Manager and has received minutes from the Committee's meetings.  Considerable work continues in the areas of IRBs, Surf Boats and Officials.

Organisation of an inter-provincial competition to replace Surf League is progressing.  Support is being sought for the concept of a 'user pays' event held in conjunction with the Eastern Region Champs.  Based on feedback a decision is expected by the end of August.

The National Lifesaving Committee: the Board has been presented minutes from the Committee's meetings.  The Committee has a big workload but is making progress on it.

Next meeting
To be held on Sunday 25 August in Wellington.  This will be my last Board meeting as there will not be another meeting before the AGM in September.  I would like to thank everyone for their support over the last few years and offer my best wishes to the incoming Board.

 

Yours in surf

 

Michael Bassett-Foss
Chairman
Surf Life Saving New Zealand