Open Dropdown

Board Report: February 2014

Hi Everyone,

Rather than hold a normal Board meeting, in February the Board held a planning workshop in the SLSNZ office at Mount Maunganui, primarily to discuss the 2014/15 Strategic Plan and budget developed by the Management team.  This was a very useful session which issummarised below.  It also allowed Board members to attend the Oceans 2014 event and see our younger athletes in action.

While not covered at the meeting, the financial results for the 7 months to 31 January were circulated to the Board - a copy of the summary reports will be made available as usual to clubs (attached). The YTD results remain healthy with a $1.8m Operating Surplus, which after taking account of timing variances is still on track for a budgeted full year Operating Surplus of $1.04m before Capex and Revaluations.  Out of this surplus we have to fund $565,000 of capital expenditure for which grant income has been received, so the amount we get to keep in the bank at the end of the year is aiming to be around $500,000. 

The next few months will see heavy expenditure as we pay out for Club Grants, sports events and finish off the Beach Ed and Regional Lifeguard programmes.  While the current surplus was always budgeted to drop off quickly, we will need to manage everything tightly as we head to the end of the financial year.

Also in terms of YTD progress, Management presented the 'Balanced Scorecard' which summarises a variety of Key Performance Indicators the Board is using to assess the performance of the SLSNZ entity and the health of the 'movement'.  For your information I have included this as well.

In terms of other planning workshop, the following were the main topics: 

  • The Board spent quite a lot of time getting clarity on the Vision, Purpose and Values of the organisation.  A separate Vision statement was re-introduced and the Purpose made explicit to fit the role of SLSNZ.  Values too were re-drafted to reflect that role.  These have now been incorporated into the version of the Strategic Plan which I have attached to this communication for clubs information.
  • The three Strategic Priorities of' Healthy Clubs', 'Right People, Right Places, Right Resources' and 'Sustainability' were re-affirmed as were the outcomes being expected.
  • The high level actions and activities for the 2014/15 year were also endorsed for Management to get on with.  Specific topics discussed in some depth were the work needed to re-establish a SLSNZ Foundation, our contribution to the new Water Safety NZ organisation and how that will assist us in looking at a different Government funding model, the 'Blue Sky' sports review and Risk Management.
  • The Board also spent time looking at its own operation - finalising a Board Charter document and re-assessing what level of detail it needed see information coming through from Management - both in written reports and via sub-committee meetings.
  • The 2014/15 Budget was also endorsed.  Which will see effectively the same level of 'free cash' generated as expected for 2013/14 - a figure of around $500,000 from Net Operating Surplus less CAPEX spend.

Item

2013/14 Forecast

2014/15 Budget

Net Operating Surplus

$1.07m

$0.74m

Less CAPEX

$0.57m

$0.24m

=Free Cash

$0.50m

$0.50m

2013/14 is a 'catchup' year for CAPEX spend, which is expected to drop back considerably in 2014/15.   

The focus remains on steadily getting money back in the bank to rebuild the working capital/ cash reserves that were exhausted in 2010/11.

Overall, this was a very useful meeting and any feedback from clubs is welcome on any of the matters above and the Strategic Plan itself. 

The Board will next meet on Sunday 23 March in Whangamata, which coincides with the IRB National Championships. 

So until my next update…

Documents attached to this update are:

Yours in surf,

 

 

Geoff Hamilton
Chairman
Surf Life Saving New Zealand