2014 Accounts

[Chris]

Dear All

Please find attached the link to the Accounts for 2014

www.aebba.org.uk/finance/aebba_banking_2014_2.pdf

All thanks to Chris Saville for all of the work here

Treasurer's Report – Chris Newson and Chris Saville
Treasurer’s Report 2014

Taking over the AEBBA accounts at the end of 2013 didn’t quite go to plan. Firstly the change of named signatories form was not accepted by the bank and then I was clearly told that this type of account could not have internet banking, yet Chris Saville has this facility. Chris therefore has done all the work this year regarding the bank statements, balance sheets and BACS transfers.
Chris has developed an excellent spread sheet facility that any treasurer could use for now and in the future.

The greatest issue financially this year has been the replacement of the van. It is important that complacency does not set in here, as there is a long way to go to recover the remaining £5000 worth of loans and to ensure a replacement truck will be able to be purchased when required, which I estimate to be about 8 -10 years’ time.
Clearly the stunning generosity of the players in the association has ensured one could be purchased quickly, we are lucky to have such good souls who clearly care passionately about the game and its future.

The association needs to carry at least £4500 into each financial year that excludes any monies paid in for Bournemouth. This is required to cover our Public Liability Insurance, any unforeseen issues with the van or tables, the secretaries honorarium early in 2015 currently £650 and the trophy bill for Bournemouth.2015 already sees initial income down at the beginning of the year as the Oxford Open moves to April.

We started 2013 with a net positive balance for the first time for several years, as Chris stated, of £3430.28, I am pleased to say that we finish this year with a net balance of £5433.11.plus the £200 that Dave Alder has as float for fuel etc. This does look substantive but taking out the £5000 loan would only leave £433.11.It is the intention of Chris and Chrissie to see the loan paid back by the end of 2016, this would be taken in two equal parts of £2500.


We require a long term self-sustaining plan for both the van and tables. I would propose that table hire increases this year from the current £52. We have just over 120 tables hired out each year and an increase of £8 per table could bring in an extra £960, dependent on actual tables hired, we also continue to require the extra £1 charged at opens, thus increasing the £960 to about £1500 £2000 extra per annum; I am though mindful that players do not have bottomless pots of monies at their disposal..


Didcot has made a small profit this year, many thanks to all that have supported it.. Dave for running the events, Nigel for the formats, Ron and Eileen for the raffle and door monies and and those players who helped put up the tables. I propose that the AEBBA no longer pays any monies to winners in smaller events such as the Mixed Pairs or Grand Prix, monies collected from raffles are down and this would balance the shortfall. I thank Lorenzo Hickman for his help in this area and making Dave’s life easier again by separating all the Didcot trophies for each weekend. Raffles at AEBBA events are still not always well supported despite the tireless work of Ron and Eileen. It might be worth considering a scratch card in future for such events, as the outlay is minimal and people often prefer to win a cash prize.

[Chris_Sav]

Thanks Chrissie, but I was just the pen-pusher. All the decisions were made by you.

I should add that the accounts are now, and will be, on the AEBBA website along with the AGM minutes. These are PDF pages drawn from the Excel Spreadsheet, so pagination is not ideal. However you now have the complete picture of every transaction through the year. If you want to look at the original spreadsheet then let me know but your PC security settings will need to allow macros to run.

The accounts this year represent a development of what was started last year. Everything must now go through the bank account, there are no cash slush funds or petty cash payments any more. Everything hangs around keeping the day to day banking recorded on the 'Day To Day' sheets. macros build the individual accounts totally automatically from the categories and sub categories so that year end balance just involves adding debtors and creditors. Year end this year took about thirty minutes to finalise compared with hours and hours copying stuff to individual accounts last year. So long as the day to day cross checks balance and match the bank statements then the annual accounts should be correct  That's up to you people to pick holes before the AGM. As a retired IT specialist I can tell you it is impossible to prove any new system works 100%. Proving it does not work is much easier to spot, but I am a hopeless proof-reader. Bournemouth has a similar complex spreadsheet that handles finances and room allocation and works in conjunction with the accounts, that will not be published in its entirety as roomtype occupation is considered private. The total rooming income just needs to match the hotel invoice.

The fact I have been involved in production of these accounts means that I technically cannot fulfil my role as auditor. These accounts have been managed all year by two people (Chrissie and I) and copies regularly sent to the Secretary and Chairman, we thus hope that this will be deemed acceptable by the AGM.

Chris Saville. 

[BB Warrior]

Many thanks to Chrissie and Chris for making this information available in advance of the AGM.

The only points that I would make having looked through all of the figures are that the section entitled "Tables" on the Income & Expenditure Sheet would perhaps have been better had it been split into sub-sections as follows....

1) Income from Table Hires
2) Table Sponsorship
3) Donations received towards Truck Purchase
4) Loans received for Truck Purchase

Although this information is shown on other sheets within the accounts, it would make the main Income & Expenditure Sheet easier to read and enable members looking at the accounts to clearly identify and understand where the money has come from this year and what can actually be considered "profit" and what the long-term liabilities are.

I would also ask if the truck itself and the tables owned by AEBBA should appear on the "Balance Sheet" somewhere as these are the main assets owned by the association?

Overall, the current financial position does not look too bad considering the turmoil of the last year and for that we should all be very grateful to Chris & Chrissie for kindly lending us the additional money to complete the purchase of the new van.

[Chris_Sav]

I agree that the assets are incomplete, however the truck and tables have never been shown on the accounts. The tables do not really depreciate, but there would need to be an agreed rate of depreciation on the truck value. That I am no expert in, perhaps you can advise? Also how would  you bring the truck value onto the account as an asset and separate from consumables purchased during the year?

That would certainly give a clearer long term picture as we need to start planning for truck replacement in, say, eight years time. Progress towards that would be better demonstrated.

Re income sponsor separation, no individual table sponsorships have been received this year, only truck sponsorship. My apologies but annual table sponsorship was overlooked as we were frantically raising funds for the truck.

[gandalf the untidy]

Nov 27, 2014 13:51:03 GMT Chris_Sav said:

I agree that the assets are incomplete, however the truck and tables have never been shown on the accounts. The tables do not really depreciate, but there would need to be an agreed rate of depreciation on the truck value. That I am no expert in, perhaps you can advise? Also how would  you bring the truck value onto the account as an asset and separate from consumables purchased during the year?

That would certainly give a clearer long term picture as we need to start planning for truck replacement in, say, eight years time. Progress towards that would be better demonstrated.

Re income sponsor separation, no individual table sponsorships have been received this year, only truck sponsorship. My apologies but annual table sponsorship was overlooked as we were frantically raising funds for the truck.

Looks like you need to generate about £1000 a year to be placed in a separate account to build up funds for the possible new van, as there are only a few trips a month the Van should last a lot longer than your current estimate, How many miles would it complete in a year? we can then work out a proper hire rate

[JB]

Haven't had chance to look closely at the accounts but do agree with Dave that truck and tables should be on the balance sheet as they are the main assets.

The book value of the truck should be down as an asset less depreciation. 20% per year on a reducing balance method I think would be fair. Just a suggestion.
The consumables would still go under every day income & expenditure account as a motor expense.

The tables should be shown in assets as an average price if they were sold. Eg 10 tables @ £???? Each = £????

Also another asset that possibly should be shown is perpetual trophies?

Great job chrissie & Chris x

[fitz]

Like Jean I haven't had a chance to look closely at the accounts, but agree that the van should be depreciated on reducing balance method, most businesses I have been involved with have opted for 25% but it somewhat subjective as the purpose is to write off the asset over its expected useful life. As the tables seem to be maintain their value I would leave them in the balance sheet at cost (average per table) and show a profit in the income statement if there a table is sold in excess of the average cost.

The perpetual trophies could be shown in the balance sheet, but only at resale value. we tried to sell some unused trophies in Medway but changed our minds after the prices offered were extremely low.

Again, thanks to Chris and Chrissie for getting the finances in a much healthier state.

[Chris_Sav]

Thanks for the suggestions peeps.

To reiterate what I said earlier. Our accounts are a simple profit/loss scenario, as works for any club treasurers account. What is being suggested means, to the best of my knowledge, that I would have to convert the accounts to full business double entry book keeping as far as I can see.

That would mean setting up separate logical accounts for  diesel, tables, van etc., whereby  as money is spent on one side of the accounts on buying a van (or diesel) that then has a double entry of a receipt on a van account to give the double entry and the asset. Depreciation is then taken off that logical van account. All the logical accounts are brought together, along with profit and loss, onto the main balance sheet to give the final assets.

Yes I agree it would be better to show assets and depreciation and hence my request for advice on how best to handle new assets and depreciation on the AEBBA accounts without completely rewriting them. The accounts still need to balance and £12k van asset cannot just appear out of the blue. I've never handled accounts before so this is all new to me.

Sav

[Chris]

Dear All

We are talking two totally separate items here and the Assets MUST NOT be confused with the accounts which are monetary.

The accounts are correct in that they contain INCOME/EXPENDITURE that is the annual financial accounts.

The ASSETS should be held on a totally separate ASSET REGISTER, the two can be read together in terms of VALUE but not put together in terms of monies in and out.

So what we need is an ASSET REGISTER which is a great idea guys that is read alongside the accounts in terms of total VALUE.

Many thanks guys for your valued input and the positive responses xxx

[JB]

Chrissie did you just get inside my brain !!
Was literally just typing a reply to say so as not to complicate the accounts (and probably re-doing them) an asset register could be added.
This only needs a simple spreadsheet as there is unlikely to be much movement throughout the year.

[Chris]

Hi Jean - no but that is a bit spooky !!

Well I have thought further here -

Guys - Your ASSET register can only be what you paid for an item and the usual list contains items over £100 separated of course.

You cannot say what they are worth only what you paid for them as the current selling market at the time determines the value.

Let's say Japan suddenly decides to replicate Bar Billiards table by the 1000's that will have a knock on effect on the value of ours, they could go up in value as they are original or down as people just want a table to buy.

All we need to do is produce an ASSET REGISTER that shows what we have paid for anything over £100 - simples !!

Well simple if we knew what we paid way back for things !!

Chris x

[Chris_Sav]

Cheers Guys,

I set up an asset register;

Presumably this is like a separate logical mini account where the purchase of the van is a receipt onto it, van depreciation (say 20% per annum is a disbursement off it.

The tables could be brought onto it as an adjustment in value presumably. Without any work on them they would show a small depreciation, but increasing in value when a table is refurbished. Does the assets register need that much detail?

Perpetual trophies would have a small value if silver.

Anything else I've forgotten that should be considered an asset?

Do those values appear on the final balance sheet as an asset??

Cheers,

Sav.

Nov 28, 2014 9:01:42 GMT Chris_Sav said:

Anything else I've forgotten that should be considered an asset?

Sets of scoreboards and sets of lighting should be included for consideration as an asset, also the trolley. Even pegs and sets of balls would have a replacement value.

[JB]

Not sure if anything like printers etc are owned by AEBBA

[Chris_Sav]

Nov 28, 2014 10:02:05 GMT tommo III said:

Nov 28, 2014 9:01:42 GMT Chris_Sav said:

Anything else I've forgotten that should be considered an asset?

Sets of scoreboards and sets of lighting should be included for consideration as an asset, also the trolley. Even pegs and sets of balls would have a replacement value.

Cheers Clive, table accoutrements I had considered as part of value of each table, trolley is separate and probably worth £50 so will include that.

[Chris]

Hi Chris

An asset register does not show depreciation.

It just shows items purchased over usually £100.

It is not part of the accounts but is part of the 'wealth' of a company or in this case an association.

It is a simple list of goods or buildings ( I wish re buildings fore the AEBBA )

Thanks though for setting it up, you are a star

[Chris_Sav]

Asset sheet, completely separate, added to the end of the accounts in the form of a rolling balance to include depreciation.

Approved by Chrissie

Sav