| GENERAL: |
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| This financial strategy has been developed to address both the short and long-term needs of the Quinte Curling Club, while maintaining financial stability for ongoing operations. |
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| The long term needs will be addressed by a 15 Year "Capital Spending Plan" and a "Capital Reserve Fund" to support the capital speding.
The existence of a Capital Reserve Fund prepares the club for major equipment and building breakdowns and upgrades so these items do not become emergencies
when they arise. The availability of such funds can also reduce overall operating costs by avoiding interest charges on bank loans. |
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| The short term needs will be addressed through the club's annual budget, which includes funds for minor improvements and maintenance
related to the building, kitchen, bar, refrigeration equipment, and various tools and equipment. Adequate budgetary controls have been exercised to control
such expenditures as the Board of Directors is normally involved in the prioritization and approval process for the work. |
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| PROCEDURES: |
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| 1. The Finance Committe will develop and maintain a long-term (15-year) capital and major maintenance plan and calculate the average
annual costs of this plan. This plan is to be updated by the Finance Committee each March to reflect the current needs of the Club and be presented to the Board of
Directors for approval. Year one of the plan should detail the target capital spending for the next budget year. |
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2. A separate Capital Reserve Account will support the 15-year spending plan. The contribution to this account will be from:
- the initiation fee from new members each year.
- any profits realized in an operating year.
- membership dues.
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| 3. The minimum annual contribution should be equal to the annual amortization calculated at the end of the previous financial
year or the initiation fee from new member plus 10% of the total membership revenue from the current year whichever is larger.
The minimum annual contribution to the reserve fund should be made in the November time frame when the total membership fees have been received. Additional
contribution based on profit from the previous year can be made any time. Contribution to the Capital Reserve Account is at the discretion of the Board. |
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| 4. The minimum value held in the Capital Reserve Fund will be targeted at 1.5 times the value of the club's largest asset that may
need replacing. This value should be adjusted each year for inflation. |
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| 5. The annual membership fees and other revenue sources will be targeted to generate sufficient cash to cover the average annual
transfers to reserve plus all other ongoing expenses. |
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| 6. The Finance Committee will be appointed by the President and chaired by the President or his/her delegate. The suggested members
of the committee are the Club President, Treasurer, Manager, Director of Facilities, Vice-President and Past President. |
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| 7. The Board of Directors must approve allocation of payments from the Capital Reserve Account for major expenses that meet the criteria
for capitalization as specified on the next page. |
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| 8. A list of Quinte Curling Club Assets will be kept up to date by the Club Manager. |
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| 9. The Director of Facilities will develop an annual minor improvement plan (items less than $1,000)
and include the estimated cost of this plan in the operating budget. A list of these items will be maintained by the Director of Facilities
and made available to the Board each time an approval for a minor improvement is requested. A separate budget line will be created to account for this
minor improvement spending. |
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| RULES FOR CAPITALIZATION: |
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| Expenditures will be capitalized if they meet the following criteria: |
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| 1. The cost of a single project is greater than $1,000.00 |
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| 2. The investment will result in the extension of service life of a capital asset, or it will
be for a new or replacement capital asset. |
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| 3. The project has been reviewed and approved by the Board of Directors, and classified as a capital investment
(See attached "Approval of Capital Project" form). |
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