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Board Report: June 2015

Hi Everyone,

The June Board meeting a short conference call held on the 28th June.

From a financial perspective the results for the 11 months to 31st May are a Net Operating Surplus of $1.92 million some $1.02 million ahead of budget.  This is all timing driven due to the early billing of our major sponsors and not reflective of what the year end result will be.  The Year-end Forecast for the 12 month Net Operating Surplus has in fact reduced from last month to sit at $529,000 due to some last minute shortfalls in fundraising revenue.  But with now only one more month's results to come in until the end of the financial year the Board is comfortable the final result will not dip below this latest forecast and with a bit of luck will end up higher.  See the attached normal monthly report for details on the YTD results and variances.

In terms of other outcomes from the meeting:

  • The Board continued its strategic focus, so spent most of its time talking about the following topics:
  • The SLSNZ Foundation.  Work is now underway to develop the Trust Deed for this and get it finalised in the very near future.
  • Strategic Plan for the Surf Life Saving Movement.  More ideas were received on this from the recent Institute for Strategic Leadership course that used surf life saving as it's not-for-profit case study.  This gave us the benefit of over 20 top independent minds from around Australasia focussing on our challenges and opportunities.  Particular topics they suggested we think hard about (and they gave their thoughts on) were our value proposition as an organisation, our funding model, our diversity (or rather the lack of it), continuing to work on our brand and ways to increase our community engagement.  For me it was a useful reminder that while we are already in a strong position in some of these areas, they need to be continually developed and polished to avoid slipping backwards!

    These topics will continue to occupy the Board's thinking time - starting with the value proposition at next month's meeting.
  • On other topics, the Board reaffirmed the 2015/16 budget which has a Net Profit target of $350,000.  This is lower than the expected 2014/15 result due to two factors - less income from State Insurance as that sponsorship ends just before the end of the Financial year and a significant increase depreciation due to the new PAM database network coming on line and the depreciation of the BOP/Coromandel and Capital Coast radio networks.  However, while the P&L result is less than 2014/15 it will still generate the same amount of 'free cash' to rebuild reserves as this year as the depreciation cash stays in the business.
  • With the season well over, there were no new serious injuries to review, but the Board did look at the changes Surf Life Saving Australia (SLSA) is about to test for Personal Protective Equipment (PPE) in surf sports events.  It was decided we would follow the lead of the International Lifesaving Federation and take a 'watching brief' on the trial that SLSA will undertake over the coming summer.
  • The Board discussed the Board appointments process for the coming AGM and the skills matrix that had recently been completed to assist the Board Appointments Panel.  On this topic I would like to do a quick reminder that clubs need to advise their delegates and any agenda items for the 2015 AGM by Wednesday 19th August - this is only 7 weeks away now and there is no flexibility in this date.  You will also note that applications are now open for the four Board member positions rotating this year and the Presidency - the closing date for the Board roles is Monday 20th July and the Presidency Wednesday 19th August.
  • And finally we discussed feedback from the Board members who attended the High Performance Squad(s) Camp held in Auckland during the month.  Both Open and Youth/ Development Squads attended and the feedback was very positive about the culture and dedication of the group.  The Management Teams for both of the squads are doing a great job and the athletes impressed with their attitudes and enthusiasm.  The defence of our World Championship in 2016 is in good hands!

So that's it from me until my next update in a few weeks time.  Our next Board meeting is in Wellington on Sunday 26th July.

Yours in surf,

Geoff Hamilton
Chairman
Surf Life Saving New Zealand