TREASURER’S REPORT – WINTER 2019
We now have a firm idea of the financial outcome for the 2019 Rally held at Mornington. There are only a couple of unpresented claims from suppliers to the Rally so I am estimating that the outcome will be a surplus of $9,500. As has been previously reported there were only 1,232 members and guests registered for the Rally. Of these registrations 1,058 were for the full 7 day event and 174 folks only registered for 3 days. The final budget for registrations was 1,750, so it is like a ‘SCOMO miracle’ that we managed to turn a surplus overall. The attendance parameter which is very concerning is that the attendance represented only 9.2% of our financial membership at February – historically this ratio has been in range of 12.5% to 14.1%. What does this number mean for future rallies and their viability?
With the outcome of the Rally determined I have been able to present a reforecast budget to NatCom for their consideration and decisions regarding operating matters. Regrettably I must report that the Club appears to be heading for deficit on overall operation this financial year. I estimate we will report a loss of $25,000 (approx.) this year. As we all appreciate declining membership and no increase in subscription rates reduces our most significant source of income. This, coupled with low net revenue from the Rally, leads to a shortfall of income of $176,000 this year compared to 2018.
Your National Committee is concerned to keep our operations ‘in the black’. NatCom has systematically reviewed all cost areas seeking reductions and trying to match costs with declining revenues. This year our approved budget reveals our total operating costs at a level some $96,000 less than we experienced in 2018. Riding On publication costs will be down $43k together with wages some $25k lower. Notwithstanding this belt-tightening we will operate at a loss. Our most promising area for cost savings is in the data processing and on-line web presence. We are launching a project to rejuvenate our web presence and explore further use of Facebook (and the like) to improve our communications with members and control costs.
On a somewhat brighter note I can report that our UCARF funds are in relatively good shape. We have over $40k in the bank to meet our commitment for donations later this year and $50k in term deposit to maintain our donations through 2020. Again I would like to remind Branches that money in the bank helps no one; please consider boosting UCARF with a donation of some of your ‘lazy funds’ just sitting in the bank.
John Osborne #41785