In preparation for the presentation of the 2016-2017 Audited Financial Statement at the 2017 EC Annual General Meeting, and to honour the commitment to communication openly with EC stakeholders and the equestrian community as a whole, EC is pleased to provide a summary of the 2016-2017 financial status.
EC’s executive, administrative and financial teams have worked tirelessly to ensure that EC is meeting fiduciary responsibilities in the best interests of its partners, communities, members and participants.
Overview
EC completed the 2016-2017 fiscal year with an unfavourable variance of $10,233 over the combined Operational and Reserved budget target for the year ended March 31, 2017. Of this budget variance amount, $9,200 was due to partner-funded projects, which were deemed ineligible at the end of the year.
There are three independent fiscal components of EC’s finances – operational funds, designated equine medications funds, and “restricted” discipline-specific funds. Both revenues and expenses within these components were higher than anticipated in some areas and lower in others.
The equine medications and discipline-specific funds include a reserve account, to which designated surpluses are accrued when possible, and from which designated funds are drawn as necessary. In accordance with regulations governing Not-for-Profit Organizations, EC is required to develop policies to clearly define and delineate the collection, allocation and disbursement of these reserve funds.
Operational Balance
The operational budget provides for all of the operational, infrastructural, governance and personnel expenses inherent to the maintenance of service to the constituent communities and stakeholders who rely on EC for the delivery of programs and services.
Summary:
Revenue = $4,278,598
Expenses = $4,182,247
Operational Surplus = $96,351
(Depreciation = $114,390)
Actual Operational Expenses = $4,067,857
Actual Operational Surplus = $210,741
Additional Details & Comments
1. The operational fund shows a surplus of $96,000 (including depreciation of fixed assets).
2. Operational revenue for EC was accrued from varied sources, and totals $4.28 million. Some of the major and disparate contributors to operational revenue include:
• a) Sport licences, horse recordings (ID), national passports, and fees paid by Provincial/Territorial Sport Organizations (PTSOs) = $2.989 million
• b) Sponsorships, sales and affinity, merchandise, and events = $271,000
• c) Governance and operations funding = $257,000
• d) Operational grant funding = $177,000
• e) High performance funding = $129,000
• f) Revenue from technical programs (competitions, coaches, officials, clinics, resources) and additional miscellaneous revenue = $456,000
3. Operational expenses total $4.18 million. Operational expenses account for the services which EC provides to its constituent communities and stakeholders. Some of the major operational expenses include:
• a) Salaries and benefits of the 29 EC employees who provide services = $1.859 million
• b) Building rental, office operating expenses = $425,000
• c) Communications, IT/web costs = $98,000
• d) Consultants, contractors = $240,000
• e) Planning and development = $230,000
• f) Governance = $132,000
• g) Legal and audit costs = $44,000
• h) Translation = $101,000
• i) Membership admin, affiliation fees = $18,000
• j) Annual convention and other events = $226,000
• k) High performance expenses (travel, meetings, development) = $172,000
• l) Sponsorship, affinity, marketing, merchandise, business development, organizational representation = $247,000
• m) Technical programs and admin (coaching, officials, rules) = $293,000
• n) Equestrian industry and horse welfare = $37,000
Reserve Fund Accounts
Reserve funds as broken down below predominantly show a draw down on reserve funds. All planned reserve fund drawdowns are offset by a withdrawal of prior retained earnings in each reserve fund account, and as such show no operational surplus or deficit.
Equine Medications Designated Budget
The Equine Medications budget is a self-sustaining designated financial entity. Revenue accrues from the Equine Medications Fee levied at sanctioned events. Expenses are incurred solely to cover the costs associated with the administration of the Equine Medications program in accordance with EC and FEI regulations.
Summary
Revenue = $491,310
Expenses = $524,314
From Equine Medications Designated Reserve = ($33,004)
Discipline Budget
Discipline-specific expenses are identified by the respective sport discipline committees to meet the unique needs of each respective sport discipline. Expenses over-and-above discipline-specific revenues are covered by reserve funds accrued for this purpose.
Summary
Revenue = $2,025,725
Expenses = $2,458,085
From Discipline Designated Reserve = ($432,360)
Questions, Comments?
Questions or comments related to the 2016-2017 Financial Statement can be directed to the EC Finance Committee at FinanceCommittee@equestrian.ca.
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