The December Board meeting was held in Wellington on Sunday 13th December.
From a financial perspective the results for the five months to 30th November are a Net Operating Surplus of $1.82 million, which is $582,500 ahead of budget. This positive variance is 60% due to income being invoiced earlier than budgeted and 40% to costs being incurred later than budgeted, i.e. all timing variations and is not indicative of the full year situation. The full explanation of the variances is in the Dashboard report. With the Regional Lifeguard programme about to roll out around the country we now see some significant months of expenditure that quickly reduce the level of Surplus.
In the latest forecast the full year Net Operating Surplus has slipped back to $127k. We are now $224k less than budget, driven by the NZLGB grant being $200,000 less than budgeted and one short term sponsorship contract being $100,000 less than budgeted with a few wins along the way offsetting this. The budgets have been deliberately set to be challenging in order to aggressively continue to rebuild reserves, so some knockbacks have to be expected. At the latest forecast levels the amount of surplus cash being generated is in line with last year, however the pressure is on to make sure we don't slip too much further. See the attached normal monthly report for details.
In terms of other items of note from the meeting
The next Board meeting will be held in Wellington on Friday 19th and Saturday 20th February, which is our annual Planning Workshop, with the focus on signing off on the 2016/17 Strategic Plan and budget.
So that's it from me - it continues to be a very busy time!
Best wishes to everyone out on patrol (and those behind the scenes) over remainder of the holiday season - I hope you have had some time to relax with your families over this hectic time.
So until my next update……
Yours in surf,
Surf Life Saving New Zealand