Improved Position

Manawatu Times, Volume 62, Issue 65, 18 March 1937, Page 10

Improved Position

Of Manawatu Show Finances LIABILITIES REDUCED NEARLY £2OOO Marked improvement in finances of tlic Manawatu A. and F. Association is revealed in a report presented to the general committee on Tuesday by the treasurer, Mr. T. R. Hodder. Mr Hodder stated: — “Liabilities: The past year has been one of great activity and one that is noteworthy for a big reduction in the Association’s liabilities which together with the re-arrangement of the remaining mortgages at a lower rate of interest will reduce the interest bill by over i.IOO. There lias been a net reduction of liabilities of £1,903. Two mortgages totalling £10,300 have been repaid and the overdraft reduced by £3,661, and a loan on mortgage of £12,000 at 4£ per cent has been arranged. The reduction of £1,903 in our liabilities has been made possible principally by (a) A canvas for special donations for debt-re-duction purposes which resulted in 78 persons contributing £B6-1 4s 7d. (b) A transfer of £719 from the Winter Show gate receipts representing tho *net proceeds for the last day (King’s Birthwhen a combination of a beautiful day, a public holiday, and tho “Hell Drivers” resulted in the record of £912 being taken at the gates that day. (c) An increase in membership receipts of £319. “I include in my report tho following comparative table showing the change in liabilities, and cash at bank for the years ending February 1936 and 1937 respectively:— 1933-36 1936-37 Loans on mortgage £IO,OOO £12,000 Loans unsecured 300 Overdraft at bank 7,230 3,569 17,530 15,569 Less cash at bank 488 430 Net liability 17,042 15,139 Net reduction of liability 1,903 17,042 17,042 The savings in interest in the year 1937-38 will be about £l2o—more if the two shows are as profitable as the two in the year just concluded, keeping the overdraft at the lowest possible level. “Debt Reduction Fund Account: The total amount paid into this account amounts to £2,618 3s 3d made up of Stock Driee donations £332 6s lOd, Life Membership Subscriptions £385 18s 6d, special donations £864 4s 7d, and the transfer of £719 from the winter shown gate receipts. Out of this account the McKelvie mortgage of £2OOO and the private loan from Mrs H. A. Parker of £3OO have been repaid, leaving a balance in hand of £3lB 3s 3d. There are still several promised donations which are expected to be paid shortly. I would like to extend my thanks as treasurer to Messrs H. Yoss aud L. P Wall who generously gave their time to canvas for the special debt reduction donations. They arc deserving of a special vote of thanks from the members for this work. “Building Fund Account: In August last a very successful A. and P. ball was organised by Mr and Airs Alansford together with many citizen wellwishers of the association, our president and some of the committee aud their wives. Tho sum of £lll 16s lid was raised in this way to form the nucleus of a grandstand fund. I heartily thank all those who assisted to make the ball such a success. “Capital Expenditure: No new work has been, undertaken. It is the committee 's policy not to borrow any further money for capital works. In regard to repairs to or replacement of tho damaged grandstand the committee has definitely decided that this work cannot be taken in hand until the money is earned. I would like to have this policy endorsed by the members at the annual general meeting. “Office Administration: Just before Christmas 1936 the assistant secretary Air C. G. Perrin resigned to take up an appointment with the City Council and the junior Air L. Alajor also resigned to join the stall of Alessrs Jos. Nathan and Co. An effort is being made to carry on without replacing Air Perrin in order to keep down tho administration expenses. A new office junior has beeu engaged and tho office staff now consists of the Secretary, the cashier, aud the junior. It may be found necessary to engage extra clerical assistance for about a month at each show period. The salaries bill will be £7OO (approx.) as against £856 (1931 scale). “Insurances: Owing chiefly to a special bonus granted by the Insurance Companies there will be a saving of approximately £3l under this head in the coming year. After allowing for a rise of £SO in the secretary’s salary and about £4O for casual office assistance we can expect savings of £l2O in interest, £l5O in salaries and £3l in insurances, making a total saving under these heads of £3Ol (approx.). ‘‘Maintenance and Repairs: The total cash expended during the year under this heads amounts to £937 16s lOd. Of this amount £559 16s lOd is a charge against this year, the balance—£377— represents repairs to buildings damaged by the hurricane in February of last year and was provided for in last year’s accounts. Nevertheless the sum of £937 has been paid this year out of our bank account for maintenance and repairs and this should bo remembered when examining the overdraft prosition. “Legal expenses for the year amount to £Bl 3s. These'are in connection with the re-adjustment of mortgages and for sundry legal opinions obtained. “General Revue: Receipts for members’ subscriptions show an increase of £319, the total amount collected being £1654 16s 6d. This does not include subscriptions from life members which arc banked in the debt reduced ac-

count. In two years receipts for members subscriptions have increased by £526 and we are nearly back to the 190 l level of £3,705. Revenue from grounds and buildings amount to £486 2s an increase of £132 7s 6d caused by increases in returns from the speedway meetings, football matches and hall rents. “Winter show revenue amounted to £3,201 6s an increase of £5Bl 19s 3d. The expenses amounted to £2,048 17s 3d an increase of £286 4s. Tho gross profit was £1,152 8s 9d of which £719 was transferred to the debt reduction account. Winter show gate takings reached tho record figure of £2022 16s. Space receipts increased by £6l and privileges by £6O. On the expenditure side general show expenses increased by £77, labour by £B9, prizes by £6B, luncheons and judges expenses by £lB. These increases are mainly due to the show being held for six days as against four days in 1936, and to the increased rates of pay for labour. “Spring show revenue' amounted to £2,970 13s 7d, an increase of £SB 10s sd. The expenses amounted to £2,623 18s 2d a reduction of £144 9s 7d. The net profit was £346 15s sd. Gates receipts showed an increase of £202 and amounted to £1365 14s. Entry fees were less by £67 and space receipts fell by £39. A big increase in side-shows space receipts almost offset the loss of revenue due to the absence of the motor Olympia. Privileges receipts totalled £lB4 Ss 9d an increase of £2B. General show expenses increased by £B6, labour by £4B. Prizes were less by £232 and advertising less by £l2. The loss on catalogues was £54 as compared with £7l in 1936. “Profit and loss statement: The actual profit for the year amounts to £356 10s 6d after writing off as depreciation the sum of £467 12s Bd. The transfer of £719 of the winter show gate receipts to the debt reduction account results in a net loss of £363 9s 6d. The special debt reduction fund donations amounting to £864 4s 7d not included in the revenue for the year but are shown separately in the debt reduction account. “Depreciation: The amount of £467 32s Sd representing 2i per cent, of the book value of the buildings and fittings has been written off by way of depreciation. It is proposed to make this u fixed annual charge, thus enabling a true comparison to be made between one year and another. “Budgeting of expenditure: The committee has been successful in keeping expenditure within budget figures which were drawn up by the secretary in April last. In this way a progressive financial policy will bo maintained. “On behalf of the association I also wish to thank Alessrs. E. A. Shand, J. A. Nash, the secretary and all city members who have worked so hard to obtain the big increase in our members’ roll. Aly special thanks are also extended to those members of the committee who assisted with the canvass for spring show donations, both locally and in Wellington. Air. T. A. Hastings is also deserving of special mention and thanks for his able control of our gate staff. His duties are very onerous entailing many days and nights of careful attention. His gratuitous services in this way are warmly appreciated. J also thank Air. W. A. Sutherland for organising the sale of cheese which brought in £9 for the debt reduction fund. “In conclusion, I wish to reiterate my opeping remarks. It has been a pleasure to write a report of so much progress. There is still just as much need for a careful watch over expenditure and for maintaining or increasing the revenue, but the necessity for drastic action such as proposed at the last annual meeting has fortunately beeu avoided. ’ ’