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Board Report June 2014

Hi Everyone,

 

The June Board meeting was a telephone conference held on Sunday 22nd June. The main items discussed at the meeting were:

 

  • The financial results - a copy of the summary reports are attached for clubs information.  The eleven months YTD results to 31 May remain healthy with a $1.84m Net Operating Surplus, which after taking account of timing variances is still on track to get very close to the year-end target of a Net Operating Surplus before Capex and Revaluations of around $1 million.  After funding some $565,000 of capital expenditure for which grant income has been received, the amount of "free cash" that is our real level of surplus should be around $450,000.  Of significance this month is that the planned Balance Sheet revaluations took place, including Centenary books (written down by $61,800 to nil value), Toy IRB's (written down by $67,500 to nil value), Centenary Teddy Bears (written down by $8,900 to nil value) and the loan to Lifesaving First Aid (written down by $217,661 to nil value).  This added up to just over $357,000 of revaluations and reduced the Net Profit to $1.48m YTD.  As previously signalled June expenditure will include Capex items and the year-end forecast for Net Profit will be around $609,000.  This is still a very healthy result and the write downs have no impact on the cash position of the organisation.  More importantly they represent a major and final step forward in tidying up the decisions from the 2010/11 Centenary year.  Clubs will shortly be given the opportunity to access the written-down merchandise items for use as gifts or for fundraising at no cost.
  •  In terms of decisions, the Board approved a three year extension to the Service Level Agreement with the NZSAR Council for provision of support of Search and Rescue activities, and a new sponsorship arrangement that will be announced in the coming weeks.
  • Time was spent looking at the recent insurance claims history of clubs as part of background for the current insurance review project.  It is pleasing to note that other than through earthquakes the level of losses is generally low, and the Board will keep pressure on our providers to ensure premiums reflect this.
  • Discussion took place on a paper which set out the legal liability of SLSNZ and clubs around sports events (both our own and where we provide water safety services at other events such as triathlons) - and what protection our insurance cover does (and does not) provide.  This information was helpful and will be repackaged and sent out to clubs for their reference as well.
  • The Board also reviewed the latest information on the known building projects around the country, to gauge the level of activity and what role SLSNZ can play to support these.  Greater sharing of 'best practice' information on funding and the planning/consent processes is an obvious area where more can be done.
  • Health and Safety also was a focus - with a draft report from a Health & Safety Consultant giving an early indication of that areas that need work across the movement.  A Health & Safety Plan is now in development and will be shared with clubs early in the 2014/15 year.
  • As usual we discussed Member Protection - noting the recent court case in the Hawkes Bay as a leading example of why clubs need to be vigilant and have robust processes for supervision in place.
  • The Board also noted that the call for applications for the four SLSNZ Board positions coming vacant through rotation had gone out to clubs - and strongly encourages clubs and individuals to put forward candidates who they believe can make a difference at a national level.     

 

While a short meeting a lot was covered.  By the time you read this we will have reached the end of the 2013/14 year - a challenging one for the SLSNZ organisation but the Board is very pleased to have seen the turnaround that has occurred - and the benefits of the 2012/13 restructuring start to bear fruit.  Our thanks go to the staff and all those who have supported the organisation over the last year.

 

The next Board meeting will be held in Wellington on Sunday 27th July.  So until my next update…

 

Yours in surf,

 

Geoff Hamilton

Chairman

Surf Life Saving New Zealand