Unit 174 Financial Plan
The Unit’s finances have been a topic of discussion among the membership since the NABC Committee had a surplus of approximately $51,000 that was raised by the Unit for the 2009 Houston NABC. The Unit 174 Board met in a special meeting on May 17 to discuss the situation and to plan for the next few years. A broad range of alternative uses for the funds available were considered and the following decisions were made:
- Our liquid asset (cash and Certificates of Deposit) target at the end of each year is $85,000. This is consistent with the practice over the past 10 years, will cover normal cash flow cycles and insures sufficient funds in the event of a major loss at one of our Regional or Sectional tournaments. An example might be a major ice storm that results in a big drop in Regional attendance and triggers room night and catering guarantees.
- The Board is currently projecting a year end 2010 liquid asset position of $120,000 with current spending policies in place. This represents approximately $35,000 above our target level.
- The decision was made to bring this to the target over the next 3 years with an annual plan review each year as the new board takes office.
- The 2011 Regional will celebrate the 50th year of Regional tournaments in Houston. The decision was made to allocate $10,000 to enhancing hospitality for this event on a one time basis.
- On an annual basis for the next 3 years, the following uses were decided:
- Continue the fee reduction to $5 for specified events at Sectional Tournaments. This costs approximately $2000/event.
- Consider either additional $5 events or additional hospitality at a Sectional. $2000/yr.
- Enhance the programs to attract and retain new players for unit growth by $2000/yr.
- Begin a program of table and other asset replacement at $2000/yr.
Thus the basic plan to return the surplus funds to the membership over a period of time was endorsed. The Unit Board began implementation in 2009 and the current Board has agreed to a 3 year target timeframe with specific spending plans.
Your questions and comments are welcome.
Paul Cuneo for the Unit 174 Board of Directors
May 24, 2010