The Numbers

The financial statements told one story.

The underlying systems told another.

At a high level Perry Lakes was financially stable.

The Association was profitable, held strong cash reserves and had meaningful net assets.

That was one of the reasons I had been comfortable relocating.

This was not an insolvent organisation asking a new CEO to rescue it.

But financial stability does not eliminate the need for financial discipline.

Profit had declined from the previous year.

Employment expenses had increased.

Junior competitions appeared to be one of the strongest revenue engines.

NBL1 carried a significant cost relative to its direct income.

Sponsorship had room to grow.

Court hire was substantial.

Administration costs had increased.

Merchandise and inventory deserved scrutiny.

I wanted the Board to see the organisation by program, not only as one annual profit and loss statement.

Junior domestic.

WABL.

NBL1.

Camps.

Clinics.

Merchandise.

Sponsorship.

Administration.

Which areas generated surplus?

Which broke even?

Which were deliberately subsidised because they produced strategic value?

A Board can choose to subsidise an NBL1 program heavily. There is nothing inherently wrong with that.

But it should know the amount and understand what value it expects in return.

Good governance is not about eliminating every loss-making activity.

It is about making losses intentional rather than accidental.