Last Friday, November 17th, our club had our annual financial meeting. 

 

Trevor Lee presented the yearend financial statements for our 2023-2023 Club year. He provided a high-level overview while focusing in on points of potential interest. 

 

In the cash section, he highlighted the combined funds of $80,900 in cash with $230,000 in investments - a slight decline corresponding to accrued payables. Trevor explained that he and Ian were still working to have the late Hal Jackson's funds in trust transferred back into the club's accounts. 

 

Trevor than moved into a discussion of the club's liabilities, which have declined since last year. Fundraising had decreased over the year and there was an obligation, by Rotary, to pay the ICC for Lobster Fest 2022, which was cancelled. 

 

Trevor then went into detail about the long-term projects than the club is involved in. He explained that many of these take a number of years to come into fruition, and as they proceed numbers are cleared that belong to an individualized year of funding. 

 

Trevor than answered questions from the club. Brian Martin asked why the club granted $29,000 more than we fundraised. Trevor explained that funding is disbursed based on what was raised the year before. 2021-2022 was a good year, so the club was able to grant more in funding. 

 

Another member of the club asked how we came up with $21,701 that is transferred from club operations to Member's equity. Trevor explained that it was part of balancing the club fund. 

 

Following the presentation of the yearend financial statement for the Rotary year 2022-2023, and responding to all questions, it was, on a motion duly made by Ian Smith and seconded by Roger Garriock, "Resolved that the 2022-2023 Yearend Financial Statements be Approved." This motion was carried. 

 

This motion was followed by a discussion led by President Nanita Mohan about reducing the size of the Board of Directors from 12 to 10 members. Nanita explained that club membership had declined significantly and that a 12 person board was no longer practical. The club agreed that the board should be reduced to a smaller size. 

 

The Vice-president, Brian Martin, then led a discussion on the reserve fund. The board is proposing that the reserve fund of $100,000 be used to top off funding during years where fundraising isn't high. This would involve setting a targeted amount to be fundraised every year (somewhere in the $60,000 to $70,000 range). The goal is not to deplete the reserve fund but to use it to create a smoothing cycle. So, in years where we raise more than the targeted amount of $60,000, whatever extra money is raised is added to the reserve fund; but in years where we raise less than $60,000, whatever amount is needed to meet this target is taken from the reserve fund. A limit would also be set on how low the reserve fund can get (e.g., it can't go below $50,000 for example). The club agreed that this is worth looking into, but no decision could be made until the Board creates a clear proposal for the club to consider. 

 

Notes taken by, Ramona Beattie.