Committees - Finance

 

 

Representatives

 

 

Objectives

The following are the objectives of the Finance Committee for the 2011/12 fiscal year:

1. To maintain the duties of the Finance Committee as stated in the BCRTA Policies and Procedures, Part 7; and
2. To report to and make recommendations to the Board in a timely manner.

 

 

From SUMMARY of REPORTS 2010

The Finance Committee is charged with a number of responsibilities, including:

(1) developing an annual budget for recommendation to the Board of Directors and, eventually, presenting that budget to the AGM;
(2) advising the Board in respect to changes in the adopted budget and the implications of those changes during the budget year;
(3) reviewing income and expenditures on a regular basis and making recommendations to the Board to ensure a cost-efficient organization;
(4) reviewing investments of the Association and making recommendations in respect to those investments; and
(5) considering any matters of a financial nature which have been referred to the Committee by the Board.

From time to time, the Board and Finance Committee receive recommendations from our auditor. These recommendations have been of a relatively minor administrative nature and are dealt with expeditiously by the Office Administrator, Finance Committee and Board of Directors as applicable.

The Finance Committee met during the past year on an “as required” basis and has made regular reports at the scheduled Board meetings. When developing an annual budget proposal for the Board, the Committee for many years has operated on a “zero based” budgeting mode. Any surplus realized at the end of a budget year has been set aside in reserve in two funds — the Reserve Fund and the Capital Reserve Fund. Our reserve funds have grown substantially over the past 10 years and amount to approximately $500,000 as of July 1, 2010. Our regular membership fee has remained at a constant $35 for the last 9 years.

The reserve funds have been invested in a diverse portfolio. Cash and equivalents represent 43.8% of the funds; fixed income securities and fixed income funds 47%; and equities and equity funds 9.2%. While the investment portfolio has had its ups and downs with market fluctuations (in particular over the past two years) and low interest returns on investments, we do have a very diverse and “solid” portfolio.

During the past two years, additional efforts by the Board to involve the membership in the Association’s activities has seen us increase expenditures in a number of areas and add various initiatives. The details can be found in the budget being presented to this 2010 AGM. As we add activities, we must fund them. Three of those activities spring to mind as I write this — the annual grant to the RR Smith Memorial fund, the “regularization” of the Zone meetings, and the meetings of the BCRTA delegates to the BCTF Annual General Meeting. One “activity” over which we have no control but is reflected in the 2010-2011 budget is the increased expenditures resulting from the provincial government’s actions in respect to the Harmonized Sales Tax (the HST).

As a result of the increased activities over the 2009-2010 budget year and inflationary factors, the Board has (for the first time in at least ten years) found that there was no surplus at the end of that fiscal year. Indeed, there was a deficit of approximately $52,814.00.

When the Finance Committee considered what budget to recommend to the Board for the 2010-2011 fiscal year, we carefully examined each item; adjusted/amended; factored in the new Harmonized Sales Tax costs and inflation; and found that the anticipated expenditures would exceed the income by approximately $65,000.

We recommended to the Board that the 2009-2010 deficit be offset by a transfer from our reserve funds of the monies required to balance the budget. The Board agreed.

We also recommended that the anticipated deficit for the 2010-2011 fiscal year be taken from those reserve funds. Again, the Board agreed, noting that under the unusual circumstances we had few options as the membership fee for 2010-2011 had already been set by the 2009 AGM.

The Finance Committee made note of the fact that we built our reserves in “the good times” and that these “rainy day” funds should be used at this juncture under the circumstances noted above.

As the annual membership fee for 2011-2012 must be set by this year’s AGM, the Board is recommending a fee increase of $5.

The Finance Committee membership this fiscal year included Ron Awai (Past President), Cliff Boldt (Second Vice President), Pat Brady (Chair), Tom Brunker (Treasurer), Doug Edgar (First Vice President), Sheila Pither (President), Bob Taverner (Director), and Judy de Vries (Director) and was ably assisted by Patricia Laursen (Office Administrator).

I am pleased to have had the opportunity to work with members of the Committee, the Board of Directors, and the office staff this past year. I thank all for their advice, assistance, and tenacity when coming to grips with the various functions and duties of the Finance Committee. The efforts of all to serve the BCRTA membership are noteworthy.

Respectfully submitted,
Patrick Brady, Chair

 

 

Finance Archives