Special General Meeting Minutes

Special General Meeting MBA

Wednesday 30th July 2014 7.30pm

 Attendees: The Board MBA, Rick Smith of BWA

All other Attendees please sign in name and phone number on the sheet provided.

 Hi my name is Craig Curtis President of the Mandurah Basketball Association and I would like to thank everyone for attending this meeting. Our special thanks go to the attendance and the assistance of Basketball Western Australia in the matters at hand.

 So that we can get through everything that needs to be covered off tonight I would like to read a pre-prepared statement that has been endorsed by the Board of the MBA in its entirety and then take questions from the floor.

 I and the Board would like to disclose the following information to its members and stakeholders in an attempt to inform its members of the current financial situation and to seek assistance from its member base to rectify the situation:

 

 

-          The MBA Board wishes to report the actual loss end of financial year 2013/2014 to be in the vicinity of - $105,000.00. We have worked with the BWA Management Accountant in arriving at this estimate. Obviously the final figure is not yet known and will be subject to audit.

-          The MBA Board also wishes to report costs to the end of August (current season) of approximately $122,195.00 plus a tax liability of $45,560.78 payable to the ATO. Please note that these expenses have either been presented or will be presented in the period between now and the end of August 2014 and that the income for these items has already been collected from the members.

-          To offset some of these costs we are budgeting to receive approximately $30,000.00 from various income sources including game days, Department of Sport & Recreation and a grant from the City of Mandurah.

-          It has been previous practice by the MBA Board and its paid executive to cover these costs by paying for them with the cash flow generated by the Summer Domestic Season, however this is not sustainable and the Board has mandated that this practice cease in the future.

-          However again in this instance a substantial amount of this revenue will be used to pay down the outstanding moneys owing above.

-          The current cash at bank is $4,799.08 (as of Wednesday 30th of July 2014) Plus 2 x WABL home games and now 1 x SBL final series. The mentioned items do provide revenue for the MBA in a positive return.

-          Current outstanding creditors in this outstanding amount consist of sponsors who provide services to the MBA, SBL player contract payments, an accrued tax debt, WABL function allowance and various other invoices presented.

-          Currently the financials are still being recompiled to present for our own Auditor but the following can be determined:

 

-          How the loss was incurred:

 

-          A) Complete failure to budget, securing of payment and funds management by the CEO and Accounts Manager. However, please note, the CEO is the only paid executive that the MBA Board directs.

-          B) The Board takes its responsibility for this as the CEO was board appointed and reported to the Board.

-          C) An unforeseen tax bill that is now under arrangement to pay without the express knowledge of the Board is a burden on the liquidity of the MBA.

-          D) Financial information either knowingly or unknowingly withheld or not presented to the Board.

-          E) SBL contracted players being paid higher than contracted fee minuted in the MBA Board meetings and with bonuses promised or added without the express knowledge of the Board.

-          F) Inadequate records relating to the payment of SBL players resulting possible over or underpayment of these players.

-          G) Poor receipting and accounting of cash paid by members to the Association.

-          H) Contra arrangements with sponsors and stakeholders not approved by the Board.

-          I) Staff wages payments are irreconcilable currently and at this stage are deemed to be overpaid.

-          J) Based on the above poor financial information the MBA Board then approved additional funding for new playing uniforms and a complete overhaul of the MBA identity.

 

-          What Action the Board have taken:

 

-          A) The CEO has resigned.

-          B) The MBA Board has dismissed the Accounts Manager due to financial distress of the Association.

-          C) Have appointed the BWA to assist us by way of their Management Accountants. We are also seeking financial assistance in whatever form provided by them.

-          D) We have met with SBL Players and have renegotiated and in some cases waivered their payments. The MBA Board thanks all SBL Players for their acknowledgement of our situation and thanks them for their support and understanding.

-          E) We have met with our sponsors to discuss our financial position and the nature of their agreement with the Association.

-          F) Met with our major creditors BWA, COM to make arrangements to defer payments.

-          G) Begun to fully reconcile the accounts to represent to the auditor.

-          H) Altered the end of season wind ups to turn them into fund raisers rather than dead costs.

-          I) The Board has committed to report any evidence for misappropriation of funds to the relevant authorities for investigation.

-          A complete review and over haul of the SBL expenditure for 2015 season.

 

-          What the plan is moving forward:

 

-          To strictly adhere to our budgets with assistance of BWA and external professionals.

-          Higher levels of fund raising for the coming year by forming a specialized committee.

-          Sales of signage to sponsors to wall on MARC

-          Reduction in operating costs with no plans to replace the CEO or the Accounts Manager.

-          It is intended to put rules in place to ensure future MBA Board has set policies and procedures in place to ensure future operation of the MBA operate in profit.

 

-          What the time frame is for recovery:

 

-          This is estimated to be latter half of 2016 and is based upon MBA Budgets and cash flows prepared with the assistance of BWA.

-          It is the intension of the Board to return to an operating profit at this time.

 

 

 As previously stated the current MBA Board does not shy away from the fact that it is as responsible for this situation as any other executive or non executive within the MBA and for this we apologize unreservedly.

However with the turn of events that have taken place, we are now more determined than ever to rectify this situation and are well placed with the help of the membership to never return to this situation again.

The MBA Board seeks the membership’s positive response to assist us in this current crisis and hope that you see fit to endorse the above measures. We also hope that as many members and non members will volunteer their help in order to get the MBA back to financial viability. THANK YOU.

 QUESTIONS FROM THE FLOOR:

GENRAL BUSINESS ARISING

MEETING END:




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