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1 PURPOSE OF THE MEETING This meeting is intended to provide an opportunity for our members to; Be informed as to the current status of affiliation with.

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Presentation on theme: "1 PURPOSE OF THE MEETING This meeting is intended to provide an opportunity for our members to; Be informed as to the current status of affiliation with."— Presentation transcript:

1 1 PURPOSE OF THE MEETING This meeting is intended to provide an opportunity for our members to; Be informed as to the current status of affiliation with Australian Canoeing Be informed as to the current status of affiliation with Australian Canoeing To understand the process of setting the National affiliation fees and the proposed models of setting future fees. To understand the process of setting the National affiliation fees and the proposed models of setting future fees. To challenge and understand the range of services and value for the level of affiliation fees set by AC. To challenge and understand the range of services and value for the level of affiliation fees set by AC. Understand the impact of the fees to the State initiatives and development Understand the impact of the fees to the State initiatives and development Discuss the requests from AC to restructure the CV Accounting and funds available to pay for Association liabilities such as affiliation fees from Discuss the requests from AC to restructure the CV Accounting and funds available to pay for Association liabilities such as affiliation fees from Provide feedback to both the CV and AC Boards and Executive on the way forward. Provide feedback to both the CV and AC Boards and Executive on the way forward.

2 Outcomes Clear direction from members to CV Board regarding restructuring discipline finances Clear direction from members to CV Board regarding restructuring discipline finances Clear direction from members to CV Board on negotiating future affiliation fees. Clear direction from members to CV Board on negotiating future affiliation fees. Feedback to AC on future Fee model Feedback to AC on future Fee model 2

3 3 Affiliation Fees The Board of Australian Canoeing sets the affiliation fees for all the States.

4 CV Budget /2011 budget set membership income as $90,000 based on previous membership trends. 2010/2011 budget set membership income as $90,000 based on previous membership trends. By the end of July, trends strongly suggested that a better forecast of $75,000 should be reflected. By the end of July, trends strongly suggested that a better forecast of $75,000 should be reflected. 4

5 5 COMPROMISE FOR 2010/2011 With the revised budget, CV were of the view that it could not afford to pay the full fee of $53,000 With the revised budget, CV were of the view that it could not afford to pay the full fee of $53,000 August: CV sought a reduction in Affiliation Fees August: CV sought a reduction in Affiliation Fees December: $40,000 was agreed with AC for 2010/2011 December: $40,000 was agreed with AC for 2010/2011 December: $40,000 paid in full. CV fully affiliated with AC December: $40,000 paid in full. CV fully affiliated with AC Agreed to pay more if membership income increases Agreed to pay more if membership income increases

6 Feedback 6

7 Affiliation Fee Model 7

8 Previous Models Capitation Model Capitation Model –Per head cost per member Population Based Model Population Based Model –Set administration fee by AC ($250,000) –Divided amongst states based on population based –Hence NSW and VIC biggest % of fee. 8

9 CV History 9

10 CV’s Position on AC Fees 50% of membership income (or $40,000) is still beyond the long-term financial resources of the State. 50% of membership income (or $40,000) is still beyond the long-term financial resources of the State. inhibits both seeding project initiatives and support of existing activities to grow the participation in Canoeing. inhibits both seeding project initiatives and support of existing activities to grow the participation in Canoeing. Administration cannot financially support the disciplines in development Administration cannot financially support the disciplines in development Undue pressure to raise additional funds to pay Fees not for development Undue pressure to raise additional funds to pay Fees not for development The Eildon Challenge is an example of an initiative that suffered due to lack of seeding funds and support. The Eildon Challenge is an example of an initiative that suffered due to lack of seeding funds and support. 10

11 11 CV’s POSITION - AFFILIATION FEES 2009/ / % of expenses went to AC Affiliation fees (excluding grant expenditure) 50% of expenses went to AC Affiliation fees (excluding grant expenditure) 73% of membership income paid AC Affiliation fee 73% of membership income paid AC Affiliation fee ($58 from $85 membership fee) 50% of discretionary income went to Affiliation fee (including membership income and supplementary income - excluding grants) 50% of discretionary income went to Affiliation fee (including membership income and supplementary income - excluding grants)

12 CV’s Position on AC Fees Current Affiliation Fee model: Current Affiliation Fee model: –Is unfair for Victoria –Does not support the State or Grassroots development –Inhibits growth strategies and state initiatives –Will financially cripple state in short and long term. 12

13 Process for Future Models Post Loan Affiliation committee formed Post Loan Affiliation committee formed –AC to provide update CV Proposed AC Strategic Forum CV Proposed AC Strategic Forum –% of membership income fee for each State –Capped 13

14 Feedback 14

15 AC Requests 15

16 16 CHANGES THAT AC REQUEST CV TO ADOPT As part of the proposed compromise adopted for 2010/2011, AC have requested changes to the way CV have historically maintained the accounts and what funds are accessible to meet liabilities. In brief: All income be available to pay AC Fees. (including disciplines, sponsorships and fundraising) All income be available to pay AC Fees. (including disciplines, sponsorships and fundraising) Consolidate discipline accounts with Admin Consolidate discipline accounts with Admin Inform members Inform members AC do not agree with ‘ability to pay or inability to pay’ based on the exclusion of discipline income. AC do not agree with ‘ability to pay or inability to pay’ based on the exclusion of discipline income.

17 17 CURRENT PRACTICE The Legal position: All finances reported in the audited consolidated accounts for Canoeing Victoria are deemed as Canoeing Victoria’s and therefore available to pay debtors if necessary. The Legal position: All finances reported in the audited consolidated accounts for Canoeing Victoria are deemed as Canoeing Victoria’s and therefore available to pay debtors if necessary. Discipline funds have been used controversially in the past to meet Association liabilities namely debts to Australian Canoeing to the detriment of trust and discipline development. Discipline funds have been used controversially in the past to meet Association liabilities namely debts to Australian Canoeing to the detriment of trust and discipline development.

18 Current Practice Discipline have: Separate bank accounts and MYOB files Separate bank accounts and MYOB files Presents a budget to the Board each year. Presents a budget to the Board each year. Contribute to admin costs. (insurance, audit fees and an admin) Contribute to admin costs. (insurance, audit fees and an admin) 18

19 Discipline Performances Participation is in decline across the board Participation is in decline across the board Income is in decline Income is in decline Volunteer base is deteriorating Volunteer base is deteriorating State based junior development is almost non-existent State based junior development is almost non-existent Competitive members are in decline Competitive members are in decline Facilities are not being developed Facilities are not being developed 19

20 20 PAST, CV “DISCIPLINE” FINANCIAL PERFORMANCE Bank 30/6/2004 SprintMarathonCanoePoloSlalomWildwaterTouring Opening balance $ 7,137$ 18,802$ 57,985$ 13,996$ 12,541$7,813 Operating result for year 2004/2005$11,380$- 5,922$-18,586$ 4,774$ /2006$- 5,345$- 9,802$- 8,831$ - 2,175$ 3, /2007$ 2,348$ 7,109$ 3,028$- 2,965$ /2008$- 3,617$- 4,516$- 2,021$- 72$ 1, /2009$ 2,701$ 5,636$- 2,729$ 2,701$ 2, /2010$- 1,520$- 216$ 8,189$ 7,177$- 655 Total Reported profit (loss) $- 6,813$- 7,711$-27,006$ 9,439$- 4,769 Bank Balance at 30/6/2010 $ 1.200$ 15,372$ 40,083$ 21,676$ 3,349 NIL

21 21 NET RESULT OF CV DISCIPLINE PERFORMANCE SINCE 30 TH JUNE, 2005

22 Benefits Centralised accounts and procedures Centralised accounts and procedures Alleviate volunteer work load Alleviate volunteer work load –(although increase paid work load) Simplify Audit procedures Simplify Audit procedures –(although audit fees will not be decreased) 22

23 Feedback 23

24 Outcomes Clear direction from members to CV Board regarding restructuring discipline finances Clear direction from members to CV Board regarding restructuring discipline finances Clear direction from members to CV Board on negotiating future affiliation fees. Clear direction from members to CV Board on negotiating future affiliation fees. Feedback to AC on future Fee model Feedback to AC on future Fee model 24


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