Finance

We started the 2021/22 year projecting a large deficit (after depreciation) -$65,820, knowing we had capacity to see improvements during the year.

There was still a great deal of uncertainty around, given Covid and its impact on events etc, and as occurred in the previous year, this actually had a positive impact on our financial result for the year. The final outcome is an operating surplus for the year of $25,340, a significant turnaround from the budgeted forecast. As you will see in the Financial Statements however, other factors have impacted the “comprehensive income” for the year – that is a fall in investment values; and a revaluation and subsequent fall in land and building values. These combined bring the final result to a loss of $380,828 for the year. The reasons for the improvement in the operating surplus revolve around the increase in income, as well as cost reductions. The return on our investments by way of interest, dividends and distributions was up $19,187. We did lose our major sponsor in Blooms the Chemist (post budget) of $50,000; but worked hard to secure two new ones in AFGRI Equipment and The Professionals and the return of Henselite. With long standing sponsors Dyenamic Sublimation, BCIB and the Seniors Recreation Council plus Liquor Traders Australia sponsorship dollars were down overall but the impact significantly addressed. We continue to look for new partners to fill the void; particularly a naming

rights sponsor for the BPL Perth Suns team. The WA Government continued to support BWA with their Department of Sport and Recreation Industry Investment Program assistance $180,000 (same as in 2019/20 and 2020/21) but provided some extra DSR support for specialist programs to assist with our Governance Review ($20,000). These funds have and will be spent on their target Lisa Featherby areas this year and next and are welcome lines of support to ensure these projects can proceed. The support of BWA competitions this year by players also well exceeded expectations and contributed to an increase in competition income. Rigorous cost management is a priority and expenditure was down $50,676 on initial forecasts. Small savings were evident across many areas but the biggest saving was against “High Performance” with the National Sides again cancelled due to Covid concerns. A saving of $49,476. We did make the decision to contract SEN to do professional live streaming of selected events post budget at a cost of $11,000. This pushed up costs under “club development”. These changes resulted in a cash surplus (after depreciation) of $25,340. Although we benefited last year from a rebound in financial markets; this year the reverse with a fall of $46,293. This reflects market volatility and a decline to April 2022. As we know investment values rise and fall and the desire to achieve returns higher than cash rates (as has occurred) means that we must endure these fluctuations. The Association was advised to obtain a market appraisal on the land and building assets it owns – being Level 1 158 Main Street, Osborne Park. The appraisal was disappointing (down $359,875 from the previous full valuation in 2018). Whether that

truly reflects sale values is questionable but it does indicate a trend downwards in office valuations in the area. This is one area that the Association will need to grapple with at some point in the future – leasing Vs ownership of office space; hold or sell; relocation. All important questions for the Board moving forward.

In adding the Fair Value loss on each of the financial assets ($46,293) and land and buildings ($359,875) to the cash surplus we can see the overall loss being $380,828. The operating surplus was a good achievement, the impact of the revaluations on the Profit and Loss and Balance sheet disappointing. 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 2022; and that we have the capability to meet all our obligations. Again, a good audit with very view qualifications or concerns. The 2022/23 forecast position reverts to a post Covid “normal” scenario. A return to full expenditure in regard to the High Performance program which was the biggest saving last year. A budgeted deficit of $30,899 is our initial working position. This assumes some increase in sponsors and Government support but these are areas the Association works hard at as a means to reduce our reliance on Affiliation fees from member clubs. Affiliation fee increases in this period are 2%, with the income raised here ($762,376) representing 53% of total income, a smaller reliance than most other States and Territories.

The State Government (IIP) 3 year support of $180,000 pa has concluded and we are awaiting confirmation of the next 3 year agreement. We have addressed areas of governance and compliance and anticipate this will be reflected in this funding. In every other year during my tenure as Finance Director the forecasts have been difficult but with 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 further income can be secured. The surplus outcomes from previous years implies it is not a time to cut costs on important areas such as Staffing, Club Development or the Marketing of the game and these are areas that the various committees and the Board work on. This remains at the very centre of the new Strategic Plan – “Connecting more people through bowls in more ways more often”. The Association remains well-resourced due to previous restraint and good 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.