Director – Finance Report
November 15, 2020
Year ended August 31, 2020
2020 was an unprecedented year for RMMSA that saw many unforeseen financial challenges. In early 2020 revenue started off strong with clinic income of $42K (2019 – $42K), registration income of $159K (2019 – $132K) and a consistent gaming grant fund contribution of $48.5K (2019 $48.5K). As at March 31, 2020 the Association had total revenues of $261K (2019 – $263K) before tournament income (2019 – $29K) and Rotary Duck Race income (2019 – $7K), both of which were expected to be consistent with 2019. Unfortunately, all tournaments and the Rotary Duck race were cancelled causing 2020 income to be significantly lower than 2019.
In response to Covid-19 and the cancellation of the 2020 season, the Association offered the option of refunding registration fees or carrying the fees forward to the subsequent year. The Association processed approximately 260 refund cheques and refunded $63K in registration fees which was no small task as each cheque had to be manually written, signed and mailed. The Association was able to accommodate these refund requests without charging a significant administration fee as there was sufficient cash reserves available due to the financial oversight of prior years. Registration income that was not refunded will be carried over to the 2021 season and is recorded as $58K of deferred registration fee income on the Association year end balance sheet. Rep fees were not refunded and were used to cover costs such as insurance and Softball BC fees as well as facilitate the ongoing limited rep program that continued into spring and summer. These rep fees are recognized as registration income in 2020. Prior to the impact of Covid-19 and in preparation for the 2020 season, the Association had incurred expenses on uniforms of $17K (2019 – $40K) and equipment of $9.5K (2019 – $8K) with both expenses being within 2020 budgeted amounts. With the cancellation of the season providing no further income sources and due mainly to the fixed costs of rent $56K (2019 – $56K), Utilities of $7K (2019 – $7K) and insurance $2K (2019 – $2K) the Association had a deficiency of revenue over expenses in 2020 of $<27K> (2019 – $<20K>).
Financial Position at August 31, 2020
As at August 31, 2020 RMMSA had total cash of $111K (2019 – $121K) which is sufficient cash to meet the ongoing requirements for the subsequent 2021 fiscal year. Gaming funds of $48.5K (2019 – $48.5K) had been received prior to the 2020 year end which will be used for 2021 program delivery. Total liabilities were $103K (2019 – $57K) which consist of deferred registration fee income and deferred gaming contributions, both of which will be recognized as income in the 2021 year. Major financial commitments for 2021 remain the RMMSA warehouse rent which remains consistent at $56K for the 2021 year.
2021 will be another challenging year as there will be a need to closely monitor and limit expenses to ensure the Association is in a healthy financial position for years to come.
Kris Williams, CPA, CGA
Director of Finance, RMMSA