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Board Report: 8 July 2012

Dear Clubbies,

The AGM is rapidly approaching so all clubs need to keep an eye out for cut off dates in the lead up to the AGM.
The first date to watch out for is the deadline for nominations for positions on the Board. These are now open and members are welcome to submit their applications by 23rd July. Click here to find out more.

The next date to watch is 22nd August, which is the deadline for submission of delegates and names of individuals wishing to attend the AGM, as well as for any agenda items. The AGM and associated awards function are important events on the SLS calendar and clubs are urged to send representatives. As proxy votes don't count towards the quorum it is essential clubs plan to send a real 'live' delegate!!

With Bob Harvey stepping down as President at the end of this years AGM, we will soon be announcing the details of the Special General Meeting (SGM) that will take place immediately after that AGM to elect the person who will fill his role for the year through until the 2013 AGM. At the same time we announce the SGM we will also be calling for nominations for President, and the deadline for submitting these will be 31st August.

Key points covered included:
  1. AGM - final preparations and run sheets for the In it for Life Awards function and AGM were discussed. The programme for these events will shortly be sent to clubs.
  2. Finance - 30th June was the end of the 2011/12 financial year so with year-end processing and reporting in full swing only a few days before the Board meeting it was only possible to give a high level overview of the results for the month (and the year). From the information to hand at the meeting, it was looking like the forecasted operating profit of just under $100,000 would be achieved, and this would allow a further write-down of the centenary IRB simulator equipment. Achieving any positive financial result (after four losses in the last five years) is a significant improvement, regardless of the final quantum of that surplus. The external auditors have begun their work and it is planned to release the full results for the year out to clubs with the AGM agenda in August.
  3. Governance polices - last reviewed in 2004, the Board approved these for another two years.
  4. National office - with only a year to run on the current lease, a move from the current head office location has been considered over last few months. It has been decided instead to pursue an additional period in the existing location as any move now would incur cost and disruption to staff when there are more important priorities for the organisation.
  5. SLSNZ Lottery Application - the Board approved the proposal to conduct Lottery #20 later this year and submit an application to the Department of Internal Affairs for the appropriate license.
  6. Club Development - the Board welcomed a paper from Mark Weatherall, GM Club Development outlining a reporting framework that included Club Development Officer activity and club health traffic light system.
  7. International Life Saving Federation (ILS) - the Board noted the selection criteria to be used by the subcommittee appointed to select the NZ nominee for ILS Sport Committee replacing the retiring Brian Velvin. Calls for expressions of interest went out on 3rd of July (details at www.surflifesaving.org.nz/jobs) and close on Friday 20th July.
  8. Insurance - a written report by Matt Warren was tabled on the possible mechanisms for sharing the cost of insurance between SLSNZ and clubs. It followed extensive work undertaken to review a variety of options, and the Board chose to go with an option based on the simplicity of understanding it and implementation Despite the final quote for the 2012/13 premium from Aon has still to be received, the likely scale of it is in the order of $550,000 as previously communicated, of which $150,000 will need to come from clubs. Clubs need to urgently return the information on the values they want insured so their actual premium costs can be calculated as soon as possible. In the meantime communications will go out to clubs in the very near future to outline their indicative insurance cost contribution based on the latest valuations available (most are still from last year) - so at least to give an early warning of the scale of the cost.
  9. National Communications Network (Surfcom) - the Board commended Brett Sullivan on his overview report on this project. Whilst the value of the total network being in place was understood, there is a challenge for the organisation to fund all the capital required in a timely manner. Management will now look at alternative implementation paths that put in place the critical elements of the network that will make the most difference in the short term, so that benefits can be delivered while the full funding is sourced over time.
  10. Strategic plan and budget - the Board accepted the final updates to the budget for the 2012/13 year, which reached the target of a $600,000 surplus with positive cash flow. Final figures will now be locked into the finance system. Management will now provide the Board with a prioritized order for the approved Capex spend for the year, so it is clear what initiatives will take place first. The version of the Strategic Plan for wider communication to external audiences was also finalised, and will be sent out to clubs in the next few weeks along with an overview of the budget.
  11. SLSNZ Foundation - feedback from SLSNZ auditors about structural considerations for "related party" status was tabled. Management will now take this and develop a more detailed terms of reference for the structure, operation and intent of the Foundation.
  12. Sport programme - Warwick Bell reported on progress of the National Sport Committee who are currently undertaking the National Event Review, the first part of which is looking at areas for improving 2012/13 events. First up on this list is a review of Surf League and their report is due back on this at the end of July. Reports on other major events will follow in due course.
  13. Real estate strategy - the Board discussed the desirability for SLSNZ ownership of real estate as part of broader investment strategy for reserves. Whilst the organisation was clearly not in the position to contemplate this currently, the Board asked that this strategy be given some thought.
  14. Governance development - the Board has recently completed Sport NZ's assessment exercise. It highlights strengths of the current governance along with opportunities for development. The Board rated a few high priority areas for improvement, being better use of the annual work plan, development of a stakeholder plan and improvements to CEO evaluation processes. An on-going work programme for governance development has been initiated. The Board Appointments Panel is to be provided with a skills matrix of the current Board to help them assess the applicants for the pending Board positions.
Next meeting:

The next Board meeting is set for 26 August in Wellington.

As usual, I greatly appreciate your feedback or queries.

Yours in surf

Michael Bassett-Foss
Chairman