by BG Smith, Treasurer
The big news this quarter was a change of the TVCC fiscal year reporting period from 1 July to 30 June period to a 1 October to 30 September. Last year TVCC appealed to the Internal Revenue Service and was granted the change. It allows the Club to better assimilate the impact of Paddle School revenue into the following year’s budget. Paddle School has the single greatest effect on how the Club plans its operations for the following year. The annual budget will now be prepared in July and August with accurate knowledge of the revenue generated by Paddle School. The Board will review and approve the budget in September and it will be rolled out on 1 October.
Because of the change, our FY17 only had 3 months, with July, August and September 2017 being considered a “full year albeit a short year” by IRS. We are now in FY18! Other impacts of this change are that I am once again reporting 1st Quarter data, only for a different fiscal year, and a new FY18 TVCC Budget was developed and approved commensurate with the new reporting period.
This report covers the new 1st Quarter of FY18 from 1 October 2017 through 31 December 2017. The Club is operating on a newly approved 2018 Budget that plans for approximately $41,300 in Revenue against approximately $43, 600 in Expenses. While the Budget does indicate an overspend plan of approximately $2,300, it should be noted that it also estimates revenue from Paddle School to be only $5,000 but actual revenue from the last three Paddle Schools has exceeded that amount with the 2017 school raising over $9,000 for Club operations. The Board expects to be in the black by the end of the year. Also, the Board approved other measures to ensure financial stability in the years ahead. One measure requires that the Club strive to always maintain a $10,000 positive assets balance to ensure any needs can be met without impact. Lastly, the Board plans that all future Budget proposals must be balanced and no longer indicate deficit spending.
The Club operates with three cash accounts: a checking account, a PayPal account, and a petty cash account. On 31 December 2017 those accounts had $12,887.14 cash on hand (including outstanding liabilities). Overall, the Club is in excellent financial health heading into 2018.
Primary Income for the Club is derived from Membership Dues which continued to show signs of growth. This quarter, typically a little slower than others, had $2,060 raised by Member Dues. The big news this quarter was the TVCC-hosted Ocoee River Race held on October 14th. The race and after party raised over $5,042 in charitable donations which TVCC provided to Team River Runner Chattanooga at the annual Christmas party on December 9th. Another nice surprise this quarter was another grant from the Ironman Foundation of $1,725 recognizing TVCC’s contributions to the success of their 70.3 World Championships and full Chattanooga Ironman races in September. TVCC will use this Ironman Volunteerism Grant to further training opportunities for our members in 2018 such as additional whitewater clinics and expanded winter roll practice sessions. Stay tuned for more news on these events.
Expenses for the quarter were driven by preparations for the Ocoee Race and the Christmas party. These items as well as the TRR Chattanooga donation appear on Expenses Line 2000 “Operations.”
As always, if you have any questions, would like more detail about Club finances, or want to see the Club budget detail, feel free to contact me or any Club Officer. As always, we are interested in your feedback. Thanks for supporting TVCC!