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Debt - George Neave - 28-02-2014
Am I reading the accounts correctly? It appears to have ran up a debt of £13K in course of a year. Looks largely attributable to losses from Scottish Championship. It would useful if the relevant office bearers could comment here what went wrong and also what ideas are there to recover the situation? Thank you
Re: Debt - andyburnett - 28-02-2014
I'm sure David C. or someone else will explain in due course, but it's not necessarily down to the Scottish. There is 'Other income' of £10,816 - this could be sponsorship or something similar for the Scottish?
On the 'plus' side it looks like a lot of savings have been made on the Office and related expenses, but the International spend far outweighs the contributions towards it - not unusual I imagine (the ECForum has been discussing similar matters south of the border this week).
Is the Commonwealth/Scottish this year expected to be a 'money-spinner' or a drain on our funds? These events generate a lot of money for everything connected to big events (hotels/restaurants, etc.)- hopefully it will also put something back in the CS kitty
Re: Debt - George Neave - 28-02-2014
Income is up, the number of events is down and we have ran up a substantial debt. A few repeats of this and the organisation is busted. Possibly there are good reasons and I hope our colleagues elected to look after these matters have things in hand. As a paid up member I'm looking to understand and get some assurances.
Re: Debt - Jonathan Edwards - 28-02-2014
andyburnett Wrote:I'm sure David C. or someone else will explain in due course, but it's not necessarily down to the Scottish. There is 'Other income' of £10,816 - this could be sponsorship or something similar for the Scottish?
I think that Other Income refers to the grant + interest, with the grant being £10,600 and interest being £216.
Re: Debt - Derek Howie - 28-02-2014
There was a loss made of £13,000 in the year, but it was funded by the donation of £25,000 received specifically for the purposes of the Scottish Championships and accounted for in the 2012 accounts.
Re: Debt - Alan Jelfs - 01-03-2014
Derek Howie Wrote:There was a loss made of £13,000 in the year, but it was funded by the donation of £25,000 received specifically for the purposes of the Scottish Championships and accounted for in the 2012 accounts.
I don't see any such figure in the "2012" column of these accounts.
Re: Debt - Derek Howie - 01-03-2014
Alan Jelfs Wrote:Derek Howie Wrote:There was a loss made of £13,000 in the year, but it was funded by the donation of £25,000 received specifically for the purposes of the Scottish Championships and accounted for in the 2012 accounts.
I don't see any such figure in the "2012" column of these accounts.
You'd need to look at the 2012 accounts that were presented to the 2012 AGM to see it. Why the two don't tie up is a bit strange.
But then again, these accounts also don't tie in exactly to the accounts that were presented to the 2013 AGM. The auditors probably asked for an accrual to be reversed but I'm sure David will have the exact details.
Re: Debt - David G Congalton - 01-03-2014
The audited accounts for 2012-13 have not separated the Scottish Championship out. In previous years the Scottish Championship has been separated out in the audited accounts. I followed this for the unaudited 2012-13 accounts I prepared prior to the AGM.
Essentially, for 2012-13 there are the unaudited accounts I put to the AGM (at which I explained why I was not in a position to provide audited accounts to the AGM) and the audited accounts produced by the auditors shortly after the AGM.
The unaudited accounts can be found here <!-- m --><a class="postlink" href="http://www.chessscotland.com/downloads/2013accounts.pdf">http://www.chessscotland.com/downloads/2013accounts.pdf</a><!-- m -->
These show a deficit of £241 for the year (excluding the Championship).
The Scottish Championship in Glasgow 2012 was the first event supported by our generous benefactor. The benefactors contribution is included in the balance sheet for the 2011 event held in Edinburgh as "Plus future congress funding". This can be found here
<!-- m --><a class="postlink" href="http://www.chessscotland.com/csinfo/AGM2012_Accounts2011-12.xls">http://www.chessscotland.com/csinfo/AGM ... 011-12.xls</a><!-- m -->
The accumulated fund brought forward to the 2011 Championship was £1,175. Event deficit was £557. Balance was thus £619. Benefactor support added £25k after 2011 championship so £25,619 carried forward to 2012.
Back to here
<!-- m --><a class="postlink" href="http://www.chessscotland.com/downloads/2013accounts.pdf">http://www.chessscotland.com/downloads/2013accounts.pdf</a><!-- m -->
Balance sheet shows £25,619 brought forward. The Glasgow event congress deficit is effectively the amount used of the benefactors donation.
In the 2012-13 audited accounts, the generous donation is included in current account sum of £52,310 within current assets (page 5). The £52,310 is made up of the £21,081 accumulated fund plus £5,610 amounts on deposit plus Congress accumulated fund of £25,619. See here again -
<!-- m --><a class="postlink" href="http://www.chessscotland.com/csinfo/AGM2012_Accounts2011-12.xls">http://www.chessscotland.com/csinfo/AGM ... 011-12.xls</a><!-- m -->
The balance of the Championship account, after the event and at 30 April 2013 was £11,678.
The benefactor made another generous donation prior to the 2013 event in Helensburgh, which brought the Championship account back up to around the £25k mark. As this was received after 30 April 2013 it was not included in the published accounts up to that date. It will show in this years accounts ending 30 April 2014.
If you go back to 30 April 2011 (before the benefactor donation) the CS net assets were £21,468 (accumulated fund) + £4,930 (amounts on deposit) + £1,176 (accumulated championship) = £27,574.
<!-- m --><a class="postlink" href="http://www.chessscotland.com/downloads/Accounts%202010-11.xls">http://www.chessscotland.com/downloads/ ... 010-11.xls</a><!-- m -->
In the unaudited accounts at 30 April 2013 the CS net assets were £20,900 (accumulated fund) + £11,106 (amounts on deposit) + £11,678 (accumulated championship) = £43,684.
The audited accounts show £45,169 as the auditors included items which occurred prior to 30th April 2013 that related to the Helensburgh Championships. I did not include these in the unaudited accounts I put to the 2013 AGM, as the Championship accounts I prepared were specific to the Glasgow event.
Re: Debt - Andy Howie - 01-03-2014
Deleted this as David posted the same info at the same time as me!
Re: Debt - George Neave - 01-03-2014
So, in summary, this is just timing and there is no underlying fundamental problem. That is something of a relief! It's also interesting to see just how much cash our mystery benefactor is pumping in. Goodness knows what would happen to the Scottish without this. We are very lucky to have this!
Thank you for the prompt clarification. Very helpful and much appreciated.