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Suggestion Box

Financial Status of Club
Author Last Post

Hey Rick

 

Thank you for your follow up on this very important matter. One of the things I have advocated from the beginning is transparency in all matters. I quit the Canadian Owner and Pilots Association (COPA) because of a lack of transparency. The President of that organization is paid a salary that consumes 40% of the total membership payments and they will still not publish what he makes.  

 

And you are absolutely correct in suggesting that future discussions on this matter should occur within the Internal Members Communications forum.

 

Thank you Rick for being such a dedicated and concerned member. We need more members like you.

 

Arnold Villeneuve

613-833-0984

 

Information without ownership is volatile or pointless and should not be the burden of a corporate document management system. Tobias Lekman

 

From: mailer@mail2.clubexpress.com [mailto:mailer@mail2.clubexpress.com]
Sent: November-19-14 1:42 AM
To: Suggestion Box
Subject: re: Financial Status of Club <<$118805334134$>>

 

In response to my post in August about the financial condition of the club, Mr. Mike Perkins ( NW Director) contacted me and said that he was knowledgeable about my request and knew how to get the financial data.  In the middle of September, Mike explained that it was going to be a bit more of a challenge than he originally thought, but he persevered, and a few days ago a new section was added to the club's Documents Library , titled "Club Financials".  (This is not in the Forums, but under the Member Resources heading... it is not visible unless you login.)

Mike did a great job in getting some real data for the past three fiscal years - much more than was ever published in the Newsletters.  For each year, both a Balance Sheet (Assets and Liabilities) and a Profit & Loss statement are shown.

As you might expect, this provided some actual numbers which then generated some additional questions - mainly regarding the Profit & Loss document with its various categories of expenses.  I think it would be great if someone (perhaps Mr. Perkins) could provide an explanation/definition of each of the categories and publish those in the Club Financials documents section of the website.   Mike gave me a short definition of some of the items such as:

"Administrative Expenses" -- This represents a general expense bucket for items that don't fit well in other categories.  Some examples are recognition and gifts, expense reimbursements, etc
"Printing and Reproduction" --  costs are for other various, non-newsletter related printing and duplication costs.

"Travel and Entertainment" --  The club president is reimbursed for travel and other expenses related to any club events or conventions.

If other people who have been curious about the club financial information (I see over 100 views on this thread), have questions, I suggest that those questions be posted in the "Internal Member Communications" Forum, since that Forum is not published to the general public.

Again, a big thanks to Mike Perkins for shepherding this effort to completion.

Rick Putnam

 
In response to my post in August about the financial condition of the club, Mr. Mike Perkins ( NW Director) contacted me and said that he was knowledgeable about my request and knew how to get the financial data.  In the middle of September, Mike explained that it was going to be a bit more of a challenge than he originally thought, but he persevered, and a few days ago a new section was added to the club's Documents Library , titled "Club Financials".  (This is not in the Forums, but under the Member Resources heading... it is not visible unless you login.)

Mike did a great job in getting some real data for the past three fiscal years - much more than was ever published in the Newsletters.  For each year, both a Balance Sheet (Assets and Liabilities) and a Profit & Loss statement are shown.

As you might expect, this provided some actual numbers which then generated some additional questions - mainly regarding the Profit & Loss document with its various categories of expenses.  I think it would be great if someone (perhaps Mr. Perkins) could provide an explanation/definition of each of the categories and publish those in the Club Financials documents section of the website.   Mike gave me a short definition of some of the items such as:

"Administrative Expenses" -- This represents a general expense bucket for items that don't fit well in other categories.  Some examples are recognition and gifts, expense reimbursements, etc
"Printing and Reproduction" --  costs are for other various, non-newsletter related printing and duplication costs.
"Travel and Entertainment" --  The club president is reimbursed for travel and other expenses related to any club events or conventions.

If other people who have been curious about the club financial information (I see over 100 views on this thread), have questions, I suggest that those questions be posted in the "Internal Member Communications" Forum, since that Forum is not published to the general public.

Again, a big thanks to Mike Perkins for shepherding this effort to completion.

Rick Putnam
 
Hi Richard. I'm the new monitor for posts to this forum. I'm not yet familiar with what you ask, but I will ensure that the officers see your request.
 

During the first part of August, I posted a couple of questions in the forum titled, “Allowing Converted 182’s into Club”,  and Robert Warner, the previous president of the club answered one of my questions with the following comment:  “The first newsletter after our annual conventions will have the highlights of the board meeting which will include our financials.”

 

 (The following information was provided in Newsletter #234)

Treasurer’s Report (Fiscal Year 6/1/2013 through 5/31/2014)

Gross Profit (sic)………………………………………………… $24,170.36

Total Expense…………………………………………………… $37,843.52

New Income (Loss)…………………………………………… . ( $13,504.74 )

 

(I believe this should have been Gross INCOME, not Gross PROFIT)

 

I looked back for any kind of Treasurer’s Report from previous years, and found nothing for

2012-2013,  or 2011-2012, 

 

I found the following for the 2010-2011 Budget:

 

Estimated Gross Income $29,550

Budgeted Expense $38,809

Estimated Net Income ($9,295)

(There was no mention of why this was “estimated” income.)

 

And this report from August of 2009:

Treasurer’s Report (Fiscal Year 6/1/2008 - 5/31/2009)

Gross Profit (sic).................................................................................................$30,325.16

Total Expense......................................................................................................$35,754.76

Net Income.......................................................................................................... -$5,737.60

Total Current Assets (5/31/2009)......................................................................$101,584.02

 

And this report from 2008:

Treasurers Report (6/1/2007 – 5/31/2008):

Total Income ................................................................$35,837.

Total Expenses .............................................................$24,047.

Net Income...................................................................$11,790.

 

All this information brings up several questions and suggestions:

 

The financial “report” provides very little information about the financial state of the club.  It appears that the club has been losing a significant amount of money each year for the past few years, and year 2008 was the only year that it had any positive net income.   Where is all that money going?   If it is to the convention and to other fly-ins, why don’t those fly-in’s charge more to the few members that actually attend, rather than have the entire club cover the costs?   And so what is the club’s current Net Assets ?   If it was over $100,000 in 2009, what is it today?

 

I believe that a decent “Treasurer’s report”  should include two basic documents:   An Income and Expenses statement, and an Assets and Liabilities statement.   Each statement would have sufficient detail to understand where the money is coming from, and where it is going.  For example, the expenses statement would show the costs for each fly-in, the cost of the web site, the cost of the newsletters, insurance for the club, legal fees, and any other costs.   The income statement should show income from member dues, income from the fly-ins, and interest from any investments (the $100,000 must be invested somewhere.)

 

Similarly the Assets/liabilities statement would show total Asset values and where the assets are kept, and any liabilities such as outstanding bills at the end of the fiscal year.

 

If these documents are only going to be provided at the end of the fiscal year (many clubs do this monthly, or quarterly), then someone independent of the treasurer should audit the reports.  

 

And finally, while a summary would be nice in the newsletter, I believe it would be appropriate for this information to be on the web in a section that is visible only to members.  It is not easy to search through a series of old newsletters to find the financial information.

 

So, my suggestion to the board, is that a complete financial report be published for this past year at least (and how about the prior year as well, since there was no information published for 2012-2013), including an Income and Expenses statement, and an Assets and Liabilities statement, and that this information be posted on the “Club Related Issues and Questions” forum.

 
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