INTERIM REPORT ON 1998/99 ACCOUNTS
At a meeting on 26th. October 1999 the treasurer presented a damning report on the financial situation of the club. The club is poised on the edge of bankruptcy.
She read some details from the report, and the inference of "misallocation of funds" was alarming.
It would appear that a group of people have been using their influence to draw on the funds for dubious purposes.
Cheques were drawn, by officers, without adequate reason and receipts were not given to the treasurer to cover the drawings.
Payments were made to staff without the Inland Revenue rules being applied.
All in all, my criticisms of the 1997/98 accounts have been vindicated in the analysis of the 98/99 expenditure.
I explained to the treasurer that I had been planning to become treasurer in order to highlight the mismanagement of the funds. Now I could relax in the knowledge that at the next AGM the full facts should become known.
I am hoping that the detail of the interim accounts are reflected in the presentation of the final accounts.
OVERVIEW OF ABOVE INTERIM REPORT
This overview is based on interim figures given to all committee members at a recent open committee meeting. As it was an open meeting, the information is freely available to all members. There may be minor revisions for the final accounts but the main outcome will be the same.
The treasurer gave an excellent presentation and some of her views are reflected here. Her analysis of the income and expenditure accounts show an excess of expenditure over income of £14,627.
If there are dominating people on the committee then the main responsibility for the failure of the club is implied.
Committees have been proved to be ineffective in managing businesses.
The club was declared insolvent by the accountants in the 1997/98 accounts. The current loss, and the need for further borrowing from the brewers, indicates that the club will again be insolvent and the accountants will have to review the viability of the company, taking in the interests of the creditors.
Many members have not renewed their membership. This will prejudice the future viability of the club.
Labour costs were £41,669 these together with committee costs of £7,304 give a total labour and management cost of £48,973. An experienced club manager would be able to operate the club on a similar budget.
A club manager should be appointed, and the committee disbanded. The club manager would be responsible for all aspects of running the club. He/she would operate the licensed business as a private club on behalf of the local branch and under the surveillance of RBL Head Office club inspectors.
The club should not have the responsibility of the sports and social sections. These should be separated and be self controlled. Allocations from the bar profits should be given. Profits should be allocated to the sports and social sections by a representative committee.
£3400 was taken from club capital funds to repay a loan made by Mr. Lamkin and this must affect the clubs solvency. He also drew the largest sum in honorariums and expenses of £654. It should be verified whether the loan was entered as revenue or capital. The legality of the club accepting a private loan when insolvent should be checked.
Mr. Lamkin's claim for repayment negated a loan of £4000 from the brewers.
Mr. Johnston and L Gowlett drew £300 each in honorariums. Other committee members drew £50
Other items for attention include till control, ullage, kitchen costs, and Inland Revenue & NHI regulations when employing staff.