Financial and Operational Update
Allow me to open this month’s column with a recognition of the stellar effort put forth by our finance and accounting staff over the last several weeks. In November, we moved up the Finance Committee meeting and the Board meeting to accommodate the Thanksgiving holiday. The shortened time frame required our finance staff to work in a greatly compressed manner to close the books on October, prepare for the Board meeting and finalize the 2018 budget all while preparing for the annual year-end audit and conducting a special review of the cash accounts. These staff members seldom get exposure to the membership but are an integral part of the operation of our Club. On behalf of all the members of the Club, I say to them “thank you.”
We closed October with a positive Contribution to Capital that was slightly below budget but sufficient to allow us to remain better than projected for the year. Most departments were marginally off-budget for the month except for Race, which performed better than budgeted. While member A La Carte dining was up nicely, there were fewer Member Parties than projected, which led to a negative variance in Food & Beverage. Across all departments, the total negative variance compared to budget for the month was $17,000.
Our capital accounts performed better than budgeted due to an increase in new member initiation fees and added cost controls on our capital expenses. The Club’s cash balance is approximately $4.3M allocated across the working capital account, capital reserve account, insurance reserves account and a special restricted trust account. The number of members increased from September to October, ending October with 2,380 members. Reviewing current operational expenses and projected revenue for November, the staff remains optimistic that we will finish the fiscal year on or ahead of budget.
The 2018 budget is complete and has been approved by the Board. The budget provides for a positive Contribution to Capital in 2018. The most important elements driving the new budget are the count and mix of the membership and the outcome of our discussions regarding the Local 2 labor contract.
Our Membership Committee, in conjunction with our Membership Director, has been very successful in processing our new candidate queue. We are further streamlining and automating our internal systems to better facilitate the candidate application process. Your continued referral of new candidates is one of the most important contributions you can make to the Club.
Discussions with the labor union, Local 2, have not yet begun. It is expected that union leadership will provide an invite for discussions some time in December or January. We’ll keep you posted.
We continue with the strategy of accruing capital reserves to fund the upcoming Tinsley dredge/berm activities. In addition, future routine capital expenditures are expected to be funded through the existing capital dues supported by projected contributions from operations and new member initiation fees. The current Board will encourage the 2018 Board to review and update the Club’s capital asset replacement schedule and the long-term funding plan for our larger capital assets.
The Flag Officers, Directors and appointed Officers wish you the very best for the holidays. If you have questions about the operation of your Club, please feel free to contact me at firstname.lastname@example.org.
Warmest Holiday Wishes,
Robin J. Driscoll
Chairman of the Board