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Finance Report:Audited Financial Statements,
for the year ended March 31, 2014
Bethany Tory, Chief Operating Officer
Outline of process• Jan 29, 2014: Initial meeting with auditors to outline plan
and timelines;• March 6, 2014: Year end requirements package received
by management;• March 11, 2014: Engagement letter signed;• April 17, 2014: Audit strategy memo submitted to FERM
Chair;• April 17 – May 9 & May 13, 2014: Audit on-site work;• May 15, 2014: FERM Committee reviews audited financial
statements;• May 21, 2014: Board reviews audited financial
statements.
Steps to fiscal transparency
• Audited financial statements contain significantly more detail, especially within the notes section;
• Management Discussion & Analysis documents has been made available;
• Advance materials for review prior to arrival at the ACGM;
• Finance Overview session prior to AGM.
Budget to Actuals (FY13-14)Budget Actual Variance
Revenue $15,197,881 $16,435,646 ($1,237,765)
Expense $16,287,790 $16,864,963 ($577,173)
Marketing Creative* $125,000 N/A $125,000Reorganization** $900,000 $958,450 ($58,450)
Total - Expense $17,312,790 $17,823,413 ($510,623)
Revenue over Expense ($2,114,909) ($1,387,767) (727,142)
Based on a Board approved deficit budget of $2.1M, the actual deficit position for Skate Canada was $1.3M - $727K less than anticipated.
*Funding for Marketing Creative approved by the Board of Directors. N/A under actuals as $68K was charged to deferred contribution against the legacy obligation and $50K was capitalized.**Approved by the Board of Directors. Details in note 17 of the audited financial statements.
Statement of Financial Position• Accounts receivable: $1.7M down $3.7M from prior year;• Unbilled revenue: $852K due to revenue recognition
policy change – prior period adjustment;• Accounts payable: $1.7M down $2.5M from prior year;• Investments: Rebalancing the composition of funds due to
investment policy revisions; • Deferred contributions: disclosure in note 11 regarding
World’s Legacy which is tied to the Strategic Plan;• Fund balances: Redefined into separate categories
(unrestricted, internally/ externally restricted and endowment).
Statement of Operations• Sponsorship, TV & marketing: revenue generating
contracts with impact of revenue recognition change (note 14);
• Events: Overall loss of $900K - performance ahead of budget in prior year except for 100th anniversary event;
• Investment Income: realized vs unrealized – generation of cash;
• National Team: Increased - composition of cost of support;
• HR costs: Tracked under budget excluding BOD approved reorganization costs.
Notes to the Statements
• Expanded disclosure to provide a greater level of transparency and understanding of association business for the benefit of the financial statement readers;
• Significant increase to description of funds and treatment of funds;
• Government Assistance (note 12) – identifies level of federal and provincial government assistance received for sport development and event competition support;
• Financial Instruments – further notations to address various financial risks of the association.
Final comments
• Copies available online of:– Audited financial statements;– Budget presentation;– Financial statements presentation;– FERM Committee presentation;– Management Discussion & Analysis.
• Questions?: [email protected]
Finance Report:Budget 2014-2015
Bethany Tory, Chief Operating Officer
Process for Operational Budget• Developed in individual departments;• Cost-containment measures undertaken in
concert with department leads;• Dec 11, 2013: Finance & Enterprise Risk
Management (FERM) Committee review and endorsement of direction;
• Dec 18, 2013: Board of Directors review;• Dec 23, 2013: Final review by FERM and
recommendation to BOD;• Jan 9, 2014: Approved by the BOD.
ObjectivesThree primary objectives guided development:• Create a balanced baseline or operational budget;– Future event revenue to apply to strategic initiatives and
projects;
• Separate operational and strategic elements; – Strategic elements as part of Strategic Plan with funding from
World’s Legacy;
• Divide into 3 business units, each with multiple departments;– Full allocation of activities including salaries.
Budget: Consolidated
Operations Sport Marketing Total
Revenue 9,340,610 2,761,625 3,708,211 15,810,446
Expense 7,440,405 5,854,283 2,826,003 16,120,691
Profit (Loss) 1,900,205 (3,092,658) 882,208 (310,245)
Summary
• Budget 2014-2015 reflects direction from both FERM and the Board;
• Importance of reporting and monitoring;• Establish monthly forecasting model;• Continue to focus on cost-containment at all
levels.