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The June Accounts for the ISQ, as usual contain a wealth of information. Most is produced by a standard Accounting package called MYOB. The accuracy of this information is based entirely on the information put into it in the first place.
A quick look at the Accounts reveals some glaring anomalies, and concerns, which are well hidden behind the apparent comparison with previous years, which is misleading at best,
- The
Balance Sheet brought forward figure is in fact that of June 2007. This figure
is the same as that used in Dec 07 and June 07, and I believe also June 2006.
This suggests that the accounts have not yet been finally audited, and the
accumulated profit is in fact that from Dec 06, and not the last few
months.
- Whilst the profit and loss accounts show an improvement over the last year,
looking at the figures in detail show a number of omissions and/or anomalies.
Without further analysis, it is difficult to be conclusive,
however:
(Note,
the totals are only from November to June)
- Sales are cumulatively static, and in fact showing a declining
trend.
- Gross profit is static, but showing a declining trend.
- Skate School income is 16% down, but Skate School coaching is 23% higher (The
%ages used by the ISQ are calculated using this year as a base, which is
misleading)
- Advertising is down by 70%, suggesting that either no-one is doing anything
about it, or it was a conscious decision. This may be connected to the declining
sales.
- Cleaning is down by 54%. Is this noticeable.
- Electricity and gas is down by 42%. this is simply not believable, and suggests
that some bills are not in the system.
- Insurance is down by 31% - see 2.6 above
- Legal expenses - this is a joke.
- Repairs and Maintenance have almost doubled to $220,000.
- Superannuation contributions have declined, although wages have increased by 18%
($78000).
- The Cash balances are down by $120000 since January, although the accounts claim
to show a profit. This could suggest future liquidity
problems.
The
profit and loss figures shown in the monthly comparison are different from those
published in the Monthly Accounts which suggests that one of them, probably the
comparison does not show the true situation.
Resonable conclusions to be drawn would include:
- If
this were my business, I would be very worried.
- Once the actual audited figures are in, both for last year and for this year,
the shock will be of epic proportions.
- The
business is declining, and the decline is accelerating
WHEN WILL THE ISQ ACT TO STOP THE DECLINE IN MEMBERS ASSETS. IT IS MEMBERS FUNDS, NOT A PIGGY BANK TO BE RAIDED AS AND WHEN THEY SEE FIT. THE ISQ COUNCIL HAVE A FIDUCIARY RESPONSIBILITY TO MEMBERS WHICH CLEARLY IS NOT BEING UPHELD.
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