MGoT 3rd Annual General Meeting

Clicke here to see the Income and Expenditure Account for the year ended 31 Dec 2006. This is the official account submitted to the MG Car Club and as such fits the MGCC's format. This format is not ideal for explaining MGoT's operational activities and so our Treasurer has also produced the following notes:

 

Over the last few years MGoT has successfully developed a reasonably strong financial position. This has been a conscious effort, as working capital is vital to MGoT’s continued success. The reason is simple. Tracks have to be secured and deposits paid up to nine months ahead of an event. With our calendar being largely finalised in the first few months of the year this creates an expenditure peak as we pay initial deposits. Income on the other hand is spread out reasonably evenly across the track day year as places are sold.

                                            

In last year’s Treasurer’s report I highlighted the need to grow our financial reserves whilst maintaining the MGoT philosophy of bringing track days to the MG Community at the best possible price. I am pleased to report that we did just that in 2006.

 

Throughout 2006 we maintained a 100% record in filling events. Nevertheless, the risk of financial exposure, due to poor take up of places, is a constant risk. We therefore propose to continue with the current pricing strategy and to maintain a modest growth in working capital to mitigate against this potential risk.

The balance in the MGoT bank account fluctuates throughout the year; however, during the off-season the demand on our finances is reduced. The MGCC have offered a facility whereby MGoT can deposit the majority of its working capital into a higher interest bearing account during this period. We will take advantage of this as the opportunity arises in 2007.

 

Our expenses have risen year on year, as the membership base has grown, our calendar has grown and circuit hire costs have grown. The following is a brief explanation of the figures on the attached Income and Expenditure Account (as submitted to the MGCC for the year ending Dec 2006.)

 

Advertising and Promotion: £347.50 – this consists of web hosting fees, stationary costs, event sticker costs.

 

Bank Charges: £149.00 – one off costs of setting up the Online Payments System.

 

Committee Expenses: £237.84 – made up of exhibition, printing and courier expenses.

 

Postage: £28.98

 

Room Hire: £286.09 – the costs for both our AGM and some committee meetings when Kimber House was unavailable to us due to refurbishment.

 

Website Expenses: £347.50 – development costs during 2006.

 

During 2007 our financial strategy is to respond to the requirements of an increasingly competitive track day market whilst offering best value and service to our members. We must not forget that this is only possible because of the low overheads associated with a volunteer committee and event helpers.

 

The following represents the proposed budget for 2007 expenditure:

 

Web hosting, Stationary, event stickers £250

Web site development £1200

Annual Secure Server Certificate £200

 

The MGoT website is now well established and the online booking and payment system is functioning well. However, we still need some additional functionality to ease the administrative burden on committee members. In 2007 we propose to allocate further web development budget. The new online payment system also requires an annual Secure Server Certificate adding to the regular website expenditure of hosting fees and software license fees.

 

Exhibition expense, printing, courier £750

 

We anticipate that committee expenses will generally be similar to 2006. However we are creating an additional budget for clothing to make event helpers more visible to event participants.

 

£0.00

 

The MGoT bank account does not incur monthly charges; consequently the budget for 2007 is zero.

 

£150

 

Now that Kimber House is available again for committee meetings we anticipate room hire costs will reduce during 2007. We will allocate funds for a larger venue for the AGM and for any occasions when Kimber House is unavailable.

 

£30

 

The postage budget simply reflects 2006 usage, as we foresee no significant change.

 

£500

 

We will include a contingency of £500 in the budget.

 

£585

 

We intend to purchase a number of helmets that can then be hired at events. We anticipate that over time the hire fees should repay the initial expenditure and provide a fund for replacing the helmets as they age.

 

The total budget for 2007 is therefore £3665 with the increase over 2006 being mainly in the

Related Links:
 » 2007 AGM Chairman's Report
 » 2007 AGM Secretary's Report
 » 2007 AGM Minutes