Treasurer's Report for 2014
The books and records are complete and accurate. The Federal and California State tax returns were filed timely as was the Secretary of State Information return..
At the end of 2014, the district had a net worth (Net Fund Balance) of $175,074. This included cash held the checking account of $75,456 and cash held in CD’s of $95,876. The cash held in the checking account is subject to immediate reduction to $32,344 in order to liquidate current liabilities of $43,111.
The district had a net gain for the year of $15,268 as compared to a net loss of 4,196 in 2013. The significant positive factors included significant gains in profitability for the Orange County tournament ($9,803), the Ventura tournament ($7,508) and Palm Springs ($4,942); the GNT loss was reduced by $3,749; the net costs related to the provision of tables and supplies went down by $4,895. Significant negative factors included a loss from the Riverside tournament of $7,247, costs related to a Director’s Course held at the Palm Springs tournament of $2,112.
Table counts were up Orange Country, Ventura and Palm Springs. San Diego was down slightly from the prior year. The Riverside tournament was not held in 2013. It was held in 2014 in June, a departure from the normal date. The table count was down significantly from 2012. The tournament will return to its normal date in 2015 and the Board expects the table count to begin trending upward.
At the end of 2013, preceding the Palm Springs tournament, the Board of Directors decided to terminate our relationship with a sub-contractor and purchase our own tables, team playing boards and cards, bidding boxes, table markers, stanchions, etc. These items are stored in San Diego. A one year, flat fee contract in the amount of $10,000 was awarded to a new sub-contractor who is responsible for maintaining the supplies, delivering them to the tournament site and retrieving and restocking them to storage after each tournament. The investment in these supplies was approximately $40,000. The savings related to this effort on a comparable year to year basis was $11,400. If this saving continues, the payback period related to this investment will be 3.5 years. We conservatively believe these assets will last well over 5 years but are depreciating them at that rate.
At the end of 2014, preceding the Palm Springs tournament, the Board of Directors made an additional decision to buy a quantity of sets of boards and cards that would allow us to provide all the necessary boards for the Pair events. This investment was approximately $20,000. As with the supplies mentioned above, a change regarding our previous sub-contractor resulted in savings of approximately $3,400 in card duplicating fees and we expect the savings in 2015 to approach $5,000. These assets will also be depreciated over 5 years.
The individual tournament managers have significant flexibility and control over discretionary spending on such issues as prizes and giveaways, food and beverage and advertising. In all cases, such expenses for our 2014 tournaments were well controlled.
The Board of Directors has no reason to expect any significant changes in 2015 other than what has been discussed above.
David Lodge, Treasurer
Submitted: December 31, 2014