PITSEA & VANGE ROYAL BRITISH LEGION CLUB LTD
COMMENTS ON THE ACCOUNTS TO 30/9/00
I will try to give some comments, as to the changes, since I, "Put a warning shot across their bows" 18 months ago. I will use the figures from the accountant's draft report of December 2000.
1. This is, at least, the third year that the club has been allowed to trade as a going concern while insolvent. Even allowing for the (generous?) valuation of £20,000 for fixtures and equipment, the excess of liabilities over assets is £3,000. The brewery is carrying the club, and each year giving the club loans, (£3,100 99/00). It may not for much longer.
2. Instead of a loss of £3,158 for 98/99 there was a profit of £4,767 in 99/00. An increase of £7,925. As the level of activity was similar, then it appears that my warning put that amount into the profits!
3. I highlighted the fact that in 98/99 £7,304, (£7,113 in a/c report), was drawn by the committee in honorariums. In 99/00 this reduced to £4,450. My warning stopped the committee from drawing the excess of £2,663!
4. Thebarstewards costs in 99/00 were £30,023 an increase of £3,062!
5. The fruit machines gave an increase of £2,886 in profits.
6. At £2,407, (11 days) stocks are about a third of the previous year end. (28 days) This could indicate a serious cash flow problem.