2017 FINANCIAL RESULTS

2017 FINANCIAL RESULTS

Please click on the below link to download a copy of the 2017 financials, for any queries please contact Dean , dean@painthorse.net.au

Signed

Financials 2017

President’s Report to the 2018 Annual General Meeting of the Paint Horse Association of Australia (PHAA)

Welcome everyone to the 2018 AGM.Again, I thank you for allowing me to be part of the board and to help to grow this wonderful association.

This year we have a few changes, the most recent as you will all know being the loss of our Office Manager Jodie.The board has also made some changes to try to bring down the cost of board meetings, our postage expenses, and we are still working on streamlining the journal process and internal processes to ensure we are well equipped moving forward.

I welcome our new Office Manager Dean Henry to the team – he comes to us with many years of management experience, he has accounting and human resource degree’s and a wealth of knowledge that will help to take our association forward and to build on what we already have.Coming in with fresh eyes has helped to identify breakdowns in office policy and procedure and we welcome the change that will come with streamlining these.Staff training and development will take priority in this next year and I will of course be here to help support these moving forward.

I’d like to thank our staff for all their hard work this year and in the future, you help to drive the association and it is appreciated.Dee Gavin stepped up this year to help in the office when Jodie left and I believe without her help, we would have been hard pressed to be here having a show at all – the work involved behind the scenes is incredible.

Our auditors this year have picked up on an issue with our reporting.The fact that our accounting year is from January to December and our membership year is from August to July poses issues as we account for our income and expenditure on accrual basis.This mean that there is 5 months of income for the previous membership year that is received in the following financial year.To ensure correct reporting, they have made an adjustment to last year’s figures – moving $154,727 of income back to the last financial year.

They have also changed the reporting of our building and land to ensure depreciation is only claimed on the building, not on both as has been the case previously.They are working with Dean to ensure our MYOB is correctly reconciled and reporting will be much more accurate in the future.

Membership income is down this year and this will be a main focus for the next financial year to ensure we re-gain lost members.The new Introductory membership figures have improved greatly, which shows we have gained 225 new members, we can now focus on building the associations brand and continuing to gain new members while keeping our existing members.

We have also gained partnership with the Big 4 Caravan parks – members have until September to take up the offer of 20% off big 4, two-year membership – this entitles you to 10% off your stay at a big 4 park (up to $40 per visit).The office has the discount code if you wish to take up this offer.

Thank you all for being members in the best association for the best breed.I have enjoyed my time on the board, it is now time for me to step back and spend a bit more time with my family, so I will be staying on as immediate past president this year.I look forward to the future and catching up with you at the show.Most of all stay safe out there and HAVE FUN!

Nicole Steinberger
PHAA President

FINANCE DIRECTORS REPORT

Welcome everyone to the 2018 AGM.

This past year we have had many innovations to systems and procedures in the office which have not come to fruition yet and this is mainly due to the office personnel we have and their backgrounds in office systems and procedures however in stating this their years of experience with us certainly does not go un-noticed and as we move forward it is our aim to train them in the systems and procedures we required actioned.

Our office is now equipped with modern facilities, upgraded software and equipment that certainly makes life easier for the staff.

We lost our Office Manager in the past 12 months which left a few gaps which we already were aware of and we are working on those gaps to streamline positions and include Best Practices, with the assistance of an independent non bias external accounting firm.

The Auditors have informed us that the previous Office Manager often put her hand up many times to say there were task’s that were overhead and this has now come to light with the new Office Manager being engaged who has detailed problem areas, which are all currently being rectified.

Specifically relating to the financial performance of the PHAA I strongly urge and or suggest we begin using our External Accountants for a once per month check and audit of the company data file, with the previous Office Manager departing it has become evident that the reconciliations and other financial duties have not been performed on a weekly and or monthly basis which has now caused the Association to have excessive fees in both Contracting wages and external accounting fees to rectify the excessive mistakes in BAS, IAS, MYOB journals and other areas of the financials. Provided the external accountants are checking the company data file each month or quarter this ensures the checks and balances are actually performed as legislative requirements dictate and furthermore provides a transparent link and or check to ensure the Office Manager is diligent in their duties.

From a Financial and office systems and procedures viewpoint we are taking steps to ratify the problem areas, this also includes getting an independent non bias audit done on MYOB (which is substantially out of balance) along with protocols, standards, procedures and policies. We are also in the process of investigating all current contracts with Suppliers and looking into all office costs’.

Specifically relating to the Financials I make the following observations,

• 1) While the total income decreased the EBITA increased.
• 2) Membership Fees have decreased however this is also a timing issue with fees as opposed to our Financial year which we are in discussions with the Accountants on to rectify this moving forward.
• 3) Postage Fees are excessive at $13K, would be removed if more communications were electronic.
• 5) Generic testing fees and income do not equal and is being investigated further.
• 6) The National Show Trophies expense was excessive which contributed to the overall increased loss on the show compared to previous year however in stating this the actual Trophies expense was decreased by some $$6K from the previous year and this year’s National Show has thus far been dramatically reduced.
• 7) Youth membership was very strong.
• 8)Banks fees decreased by some $10K.
• 9) Computer and Website fees reduced by some $7K, we have been informed Adobe, who are an American based platform for websites, will cease operating and therefore hosting our website, this is a good opportunity to reanalyse our requirements and cost’s when looking to source a new company to do our website.
• 10)Insurance has decreased by some $5K.
• 11)Printing and stationery has decreased by some $8k.

The end result of these savings is a decrease in costs from the previous year by some $46K however removing and or decreasing some expense lines, by reviewing contracts, I would anticipate further savings of around an additional $10-$20K per year.

The Association continues to spend excessive amounts on paper and therefore associated cost’s relating to this including postage, whilst I appreciate the organisations previous years have always entailed Australia Post I believe moving forward we must implement more electronic ways to operate the business furthermore we are in the final stages of securing an electronic filing system which will dramatically reduce paper cost’s.

As we move forward this year I am excited with potential changes, while its never desirable to change staff when we interviewed for the position Office Manager we felt it maybe in the Associations better interests to not employee a candidate from the Equine industry, this enables a different set of eyes, and experience, on the overall operations of the business and our organisation in its entirety.

Fred Burton
Finance Director