I thought it important, as the new Treasurer appointed in November, to provide you with an update on the status of the club finances following on from the losses of c. £1m last year reported in the Annual Report and the AGM.
We have taken/are taking significant action to ensure the club remains true to its promised benefits of helping us make the most of our time in the mountains whilst getting back onto sound financial footing.
As you will hopefully have seen, after seven years of service to the club Malcolm Bentley is stepping down as chairman. As a result, we appointed a very experienced successor, Trevor Campbell Davis, initially on an interim basis. He comes with 30 year’s club membership and a multitude of Chair and Treasurer experiences and is also a qualified Accountant. He has not previously been involved in Council so comes to us with “fresh eyes” and a lot of ideas and experience to help us improve our processes now and our services in the future.
Current Financial Situation:
Unfortunately, there will be another significant shortfall this year, because the problems of last year were not uncovered early enough this financial year to avoid them. The problems I see are twofold: a continuing shortfall in high value income (Insurance, advertising and membership) and this was compounded by an over-investment in costs, mostly Marketing. However, I believe that the team now know what needs to be done to bring the club finances back into balance for the future. I am also confident that the club remains viable with significant reserves, enough to cover any shortfall and enough remaining to ensure we have time to fix the problems. We do have to balance two objectives though: 1.
Financial actions we have taken/are taking to fix the problems:
New budgetary controls; new month end process; new cash flow modelling; new sign off process and financial controls; new profit profiling and control on Freshtracks; several redundancies and freezing of recruitment. There are more savings to come and I believe there’s a clear budget for 2020/21 with the necessary control to achieve it. We are also being supported by two Members who are qualified Accountants to review and endorse the new processes and reporting we have implemented.
Full Reps Service:
In terms of our resort service we ask all our Reps to help make this year a good first year of the Reps programme; talk to the in resort authorities, businesses and partners, meet members, organise events, organise groups of like skiers and join them socially skiing. In addition, we will be asking from further support from Reps, Ian will be communicating about this shortly.
More plans to come:
We will communicate specific plans separately but wanted to inform members of our current position, that action has been taken to remedy why such events have occurred, and to make you aware that various cost-saving announcements should be expected.
Making membership even better:
Despite the challenges we face this year, we are working to make membership of the Club better than ever. We will be launching various ideas to enhance your membership throughout the year
Treasurer - Ski Club of Great Britain