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PURPOSE OF THE MEETINGPURPOSE OF THE MEETING

This meeting is intended to provide an opportunity for our members to;This meeting is intended to provide an opportunity for our members to;

• Be informed as to the current status of affiliation with Australian CanoeingBe informed as to the current status of affiliation with Australian Canoeing

• To understand the process of setting the National affiliation fees and the To understand the process of setting the National affiliation fees and the proposed models of setting future fees.proposed models of setting future fees.

• To challenge and understand the range of services and value for the level To challenge and understand the range of services and value for the level of affiliation fees set by AC.of affiliation fees set by AC.

• Understand the impact of the fees to the State initiatives and Understand the impact of the fees to the State initiatives and developmentdevelopment

• Discuss the requests from AC to restructure the CV Accounting and funds Discuss the requests from AC to restructure the CV Accounting and funds available to pay for Association liabilities such as affiliation fees from available to pay for Association liabilities such as affiliation fees from 2011-20122011-2012

• Provide feedback to both the CV and AC Boards and Executive on the way Provide feedback to both the CV and AC Boards and Executive on the way forward.forward.

OutcomesOutcomes

• Clear direction from members to CV Board Clear direction from members to CV Board regarding restructuring discipline financesregarding restructuring discipline finances

• Clear direction from members to CV Board Clear direction from members to CV Board on negotiating future affiliation fees.on negotiating future affiliation fees.

• Feedback to AC on future Fee modelFeedback to AC on future Fee model

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Affiliation FeesAffiliation Fees

The Board of Australian Canoeing sets the The Board of Australian Canoeing sets the affiliation fees for all the States.affiliation fees for all the States.

CV Budget 2010-11CV Budget 2010-11

• 2010/2011 budget set membership 2010/2011 budget set membership income as $90,000 based on income as $90,000 based on previous membership trends.previous membership trends.

• By the end of July, trends strongly By the end of July, trends strongly suggested that a better forecast of suggested that a better forecast of $75,000 should be reflected.$75,000 should be reflected.

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COMPROMISE FOR 2010/2011COMPROMISE FOR 2010/2011

• With the revised budget, CV were of the view that With the revised budget, CV were of the view that it could not afford to pay the full fee of $53,000it could not afford to pay the full fee of $53,000

• August: CV sought a reduction in Affiliation FeesAugust: CV sought a reduction in Affiliation Fees

• December: $40,000 was agreed with AC for December: $40,000 was agreed with AC for 2010/20112010/2011

• December: $40,000 paid in full. CV fully affiliated December: $40,000 paid in full. CV fully affiliated with ACwith AC

• Agreed to pay more if membership income Agreed to pay more if membership income increasesincreases

FeedbackFeedback

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Affiliation Fee ModelAffiliation Fee Model

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Previous ModelsPrevious Models

• Capitation ModelCapitation Model– Per head cost per memberPer head cost per member

• Population Based ModelPopulation Based Model– Set administration fee by AC ($250,000)Set administration fee by AC ($250,000)– Divided amongst states based on Divided amongst states based on

population based population based – Hence NSW and VIC biggest % of fee.Hence NSW and VIC biggest % of fee.

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CV HistoryCV History

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Membership Fees AC Fees % 99/00* 43,000 19,000 44% 00/01* 59,000 28,000 47% 01/02* 51,000 32,000 63% 02/03* 80,000 33,000 41% 03/04 44,000 04/05 89,000 05/06 89,000 53,000 60% 06/07 90,000 63,000 70% 07/08 83,000 61,500 74% 08/09 100,000 76,000 76% 09/10 90,000 66,000 73% 10/11 90,000 53,000 59% 10/11* 75,000 40,000 53% 10/11* 90,000 40,000 44%

CV’s Position on AC FeesCV’s Position on AC Fees• 50% of membership income (or $40,000) is still beyond the 50% of membership income (or $40,000) is still beyond the

long-term financial resources of the State.long-term financial resources of the State.

• inhibits both seeding project initiatives and support of inhibits both seeding project initiatives and support of existing activities to grow the participation in Canoeing.existing activities to grow the participation in Canoeing.

• Administration cannot financially support the disciplines in Administration cannot financially support the disciplines in developmentdevelopment

• Undue pressure to raise additional funds to pay Fees not for Undue pressure to raise additional funds to pay Fees not for developmentdevelopment

• The Eildon Challenge is an example of an initiative that The Eildon Challenge is an example of an initiative that suffered due to lack of seeding funds and support.suffered due to lack of seeding funds and support.

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CV’s POSITION - AFFILIATION CV’s POSITION - AFFILIATION FEESFEES 2009/20102009/2010

• 50% of expenses went to AC Affiliation fees 50% of expenses went to AC Affiliation fees (excluding grant expenditure)(excluding grant expenditure)

• 73% of membership income paid AC Affiliation fee73% of membership income paid AC Affiliation fee($58 from $85 membership fee)($58 from $85 membership fee)

• 50% of discretionary income went to Affiliation 50% of discretionary income went to Affiliation fee (including membership income and fee (including membership income and supplementary income - excluding grants)supplementary income - excluding grants)

CV’s Position on AC FeesCV’s Position on AC Fees

• Current Affiliation Fee model:Current Affiliation Fee model:– Is unfair for VictoriaIs unfair for Victoria– Does not support the State or Grassroots Does not support the State or Grassroots

developmentdevelopment– Inhibits growth strategies and state Inhibits growth strategies and state

initiativesinitiatives– Will financially cripple state in short and Will financially cripple state in short and

long term.long term.

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Process for Future ModelsProcess for Future Models

• Post Loan Affiliation committee Post Loan Affiliation committee formedformed– AC to provide updateAC to provide update

• CV Proposed AC Strategic ForumCV Proposed AC Strategic Forum– % of membership income fee for each % of membership income fee for each

StateState– CappedCapped

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FeedbackFeedback

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AC RequestsAC Requests

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CHANGES THAT AC REQUEST CV TO ADOPTCHANGES THAT AC REQUEST CV TO ADOPT

As part of the proposed compromise adopted for 2010/2011, AC As part of the proposed compromise adopted for 2010/2011, AC have requested changes to the way CV have historically have requested changes to the way CV have historically maintained the accounts and what funds are accessible to meet maintained the accounts and what funds are accessible to meet liabilities. In brief:liabilities. In brief:

•All income be available to pay AC Fees.All income be available to pay AC Fees.(including disciplines, sponsorships and fundraising)(including disciplines, sponsorships and fundraising)

•Consolidate discipline accounts with AdminConsolidate discipline accounts with Admin

•Inform membersInform members

•AC do not agree with ‘ability to pay or inability to pay’ based AC do not agree with ‘ability to pay or inability to pay’ based on the exclusion of discipline income.on the exclusion of discipline income.

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CURRENT PRACTICECURRENT PRACTICE

• The Legal position: The Legal position:

All finances reported in the audited consolidated All finances reported in the audited consolidated accounts for Canoeing Victoria are deemed as accounts for Canoeing Victoria are deemed as Canoeing Victoria’s and therefore available to pay Canoeing Victoria’s and therefore available to pay debtors if necessary.debtors if necessary.

• Discipline funds have been used controversially in Discipline funds have been used controversially in the past to meet Association liabilities namely the past to meet Association liabilities namely debts to Australian Canoeing to the detriment of debts to Australian Canoeing to the detriment of trust and discipline development.trust and discipline development.

Current PracticeCurrent Practice

Discipline have:Discipline have:

• Separate bank accounts and MYOB filesSeparate bank accounts and MYOB files

• Presents a budget to the Board each year.Presents a budget to the Board each year.

• Contribute to admin costs.Contribute to admin costs.(insurance, audit fees and an admin)(insurance, audit fees and an admin)

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Discipline PerformancesDiscipline Performances

• Participation is in decline across the Participation is in decline across the boardboard

• Income is in declineIncome is in decline

• Volunteer base is deterioratingVolunteer base is deteriorating

• State based junior development is State based junior development is almost non-existentalmost non-existent

• Competitive members are in declineCompetitive members are in decline

• Facilities are not being developedFacilities are not being developed

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2020

PAST, CV “DISCIPLINE” FINANCIAL PERFORMANCE

Bank bal @ 30/6/2004

Sprint Marathon CanoePolo Slalom Wildwater Touring

Opening balance

$ 7,137 $ 18,802 $ 57,985 $ 13,996 $ 12,541 $7,813

Operating result for year2004/2005 $11,380 $- 5,922 $-18,586 $ 4,774 $- 7502005/2006 $- 5,345 $- 9,802 $- 8,831 $ - 2,175 $ 3,0012006/2007 $ 2,348 $ 7,109 $ 3,028 $- 2,965 $ 1312007/2008 $- 3,617 $- 4,516 $- 2,021 $- 72 $ 1,8022008/2009 $ 2,701 $ 5,636 $- 2,729 $ 2,701 $ 2,2962009/2010 $- 1,520 $- 216 $ 8,189 $ 7,177 $- 655Total Reported profit (loss)

$- 6,813 $- 7,711 $-27,006 $ 9,439 $- 4,769

Bank Balance at 30/6/2010

$ 1.200 $ 15,372 $ 40,083 $ 21,676 $ 3,349 NIL

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NET RESULT OF CV DISCIPLINE PERFORMANCE SINCE 30TH JUNE, 2005

Total 2005 Opening Balance in all Discipline accounts – all Disciplines

$118,274

Closing balance of all Discipline bank accounts at 30/6/2010

$ 61,680

Net overall performance for Disciplines since 30th June, 2005,

($ 56,594)

BenefitsBenefits

• Centralised accounts and proceduresCentralised accounts and procedures

• Alleviate volunteer work loadAlleviate volunteer work load– (although increase paid work load)(although increase paid work load)

• Simplify Audit procedures Simplify Audit procedures – (although audit fees will not be (although audit fees will not be

decreased)decreased)

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FeedbackFeedback

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OutcomesOutcomes

• Clear direction from members to CV Board Clear direction from members to CV Board regarding restructuring discipline financesregarding restructuring discipline finances

• Clear direction from members to CV Board Clear direction from members to CV Board on negotiating future affiliation fees.on negotiating future affiliation fees.

• Feedback to AC on future Fee modelFeedback to AC on future Fee model

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