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Finance Report: Audited Financial Statements, for the year ended March 31, 2014 Bethany Tory, Chief Operating Officer.

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Presentation on theme: "Finance Report: Audited Financial Statements, for the year ended March 31, 2014 Bethany Tory, Chief Operating Officer."— Presentation transcript:

1 Finance Report: Audited Financial Statements, for the year ended March 31, 2014 Bethany Tory, Chief Operating Officer

2 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.

3 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.

4 Budget to Actuals (FY13-14) BudgetActualVariance Revenue$15,197,881$16,435,646($1,237,765) Expense$16,287,790$16,864,963($577,173) Marketing Creative*$125,000N/A$125,000 Reorganization**$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.

5 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).

6 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 100 th 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.

7 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.

8 Final comments Copies available online of: – Audited financial statements; – Budget presentation; – Financial statements presentation; – FERM Committee presentation; – Management Discussion & Analysis. Questions?:

9 Finance Report: Budget 2014-2015 Bethany Tory, Chief Operating Officer

10 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.

11 Objectives Three 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.

12 Budget: Consolidated OperationsSportMarketingTotal Revenue9,340,6102,761,6253,708,21115,810,446 Expense7,440,4055,854,2832,826,00316,120,691 Profit (Loss)1,900,205(3,092,658)882,208(310,245)

13 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.

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