Regional Bowls Managers

We started the 2020/21 year projecting a large deficit (after depreciation) -$108,100, knowing we had capacity to see improvements during the year. We had anticipated some ongoing impacts of Covid 19 in that deficit with a reduction of members Affiliation fees and some loss of sponsorship but to see such a reversal of fortune in the last 12 months has been pleasing. The final outcome is a surplus for the year of $75,127. A great result for the Association. The reasons for the improvement revolve around the increase in income, as well as cost reductions. Investment markets showed a dramatic increase in this period with higher returns by way of interest, dividends and distributions – up $15,867. Grants and Sponsorship income was up $64,211, with the WA Government continuing to support BWA with their Department Sport & Recreation (DSR) Industry Investment Program (IIP) assistance $180,000 (same as in 2019/20). The support of Bowls WA competitions this year by players also well exceeded expectations and contributed to an increase in competition income. There was some ongoing Covid 19 support in this period, including the Government Cash Flow Boost, $60,305 which was as planned. This has now been finalised and no further assistance is anticipated. Rigorous cost management is a priority and expenditure was down $63,874 on initial forecasts. Small savings were evident across many areas such as Administration, Board costs, Development programs and a scaled back Awards Night. The biggest impact

perhaps a reduction in the Affiliation fees paid to Bowls Australia (down $39,264) given they calculate this payment “as a percentage of the Affiliation fees received by our member clubs”. At the time, the 20% Covid rebate was offered to our clubs we were unaware Bowls Australia would assist in this way. These changes resulted in a cash surplus (after depreciation) of $75,127. Lisa Featherby Along with the Cash surplus we have also benefited from the rebound in the investment markets. Surprisingly, and after some very stressful moments early in the Covid pandemic the IOOF investment has increased to $800,349. In adding the Fair Value Gain on the financial assets ($63,950) to the cash surplus we can see the overall asset growth for the year at $139,077. It is always pleasing to improve the financial position of the Association, but also to get a clean bill of health once the financial statements are prepared and audited. As has been included in the Annual Report our Auditors state clearly that the information we are presenting today is a “true and fair view” of our position as at April 2021; and that we have the capability to meet all our obligations. Again, a good audit with very few qualifications or concerns. The 2021/22 forecast position reverts to a post Covid “normal” scenario. No added Government assistance and a return to full expenditure in regard to the HighPerformance program and Bowls Australia payments. Staffing costs will increase due to compulsory superannuation payments and the full-time appointment of Kaitlin Tyrell subsequent to her traineeship and linked to the funds received for the Winning Drive program.

As an Association we have worked hard to reduce the reliance purely on member Affiliation Fees and balance our income sources with Government support (IIP funding) and Grants and Sponsorship. In a normal year (2020) Affiliation fees were 51% of total income; Grants and Sponsorship 26%. For this coming season member Affiliation fees will return to normal, again based on players within a club that have “playing rights”, calculated to achieve the required total income of $749,199 spread between the Country and Metro areas. The Metro total will increase by 1% but Country fees as a total will remain unchanged on the 2019/20 figure. The Government IIP support of $180,000 continues into its final year of the 3-year funding commitment and we have anticipated similar levels of sponsorship with Blooms the Chemist, BCIB, Dyenamic Sublimation, Liquor Traders and the Seniors Recreation Council, $97,500 in total. The final result a forecast deficit budget of $65,820. Unfortunately, since this budget was approved by the Board there have already been some negative pressures evident, in particular the renegotiation of the contract with Blooms the Chemist and the potential loss of all or part of their sponsorship. The relationship has been great and mutually beneficial to both parties but sponsorship dollars are hard to find and hard to secure into the long term. This is an area that needs considerable work and finding alternative sponsors remains a priority within our Strategic Plan. In every other year during my tenure as Finance Director the forecasts have been difficult but with plenty of upside on the horizon. All credit to Ken Pride as CEO, and his staff who have turned them around into valuable surplus outcomes. This year however that appears more troublesome unless sponsorship can be secured elsewhere. However, it is not a time to cut costs on important areas such as Staffing, Club Development or the Marketing of the game. We need to emphasise the importance of the “local Bowlo” and the social and competition aspect of the sport of Lawn Bowls to everyone, existing and new members, and support our member Clubs in every way possible during these challenging times.

The Association remains well resourced and has to date managed the difficulties of Covid 19 well, benefiting from Government support and the significant reduction in costs associated with the cancelling of the National Sides etc. However, a return to “normal” will be welcomed and if that results in a deficit outcome for a short period then we can be thankful for previous restraint and careful management which enables us to move forward with confidence, and at no risk to the Association.

Thanks go to Liz Rolt in the office who manages the accounts with great care and accuracy; to Ken Pride and the staff; also, the Audit, Risk and Finance Committee who work diligently and in partnership to produce a sound financial outcome for the Association.

Lisa Featherby

FINANCE & AUDIT