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. The barstewards 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.

A/Cs INDEX