Message from the Board including the Treasurer's Report
As of March 31, 2016 (Year End) our cash position sits at $70,941.61. This is the amount of cash that sits in our bank account following all of last year's revenues and expenses. Our cash position has evolved over the years and is described below in more detail.
SEAC was founded prior to the 2013/14 season with a cash position of $39,912.97. Monies remaining in the accounts of the three Medicine Hat AAA programs following the 2012/13 seasons were transferred from MHMHA to SEAC to help get the program started and to ensure startup costs were met.
SEAC experienced a Net loss in 2013/14 of $5880.60
Amendments to the budget followed the same & led to the creation of the fee requirement for program advertising & "club fees" to help fund capital expenditures. Further, pre-season fees & playoff expenses would be attributed to the individual team and the families.
We note a Jersey expense of $10,000 is budgeted for each year but this is a non-cash expense. There is a future requirement for updating jerseys & the cost is proportionately shared each program year. If this was recorded as a true expense the loss would have been $15,880.60.
Net profit in 2014/15 of $34,032.37
Medicine Hat Tiger 50/50 revenues earned were $7500 higher than the year prior.
SEAC exceeded the program sponsor revenue budgeted for $60,000 (raised $61,360)
Club fees of $9,975 were accumulated in the account for future Capex and are included in our profits.
Similar to above, there was no real jersey expense and if it was recorded as a true expense the profit would have been $24,032.37.
Net profit in 2015/16 of $2316.96
SEAC did not meet the program sponsor revenue budgeted for $70,000 (raised $58,402)
Very little "other" fundraising.
Club fees of $5425 were accumulated in the account for future Capital Expenditures. Capital expenditures was higher this year as SEAC added the equipment for the gym, spent monies on constructing the area for the gym, added storage lockers for the Bantams. All areas added to the future of the program.
Jersey expense of $10,000 continues to be a non-cash expense. The board made the decision to get one more year out of existing jerseys to save on costs. If this was recorded as a true expense the profit would have turned to a loss of $7,683.04. We note new jerseys have been ordered for the start of 2016/17 season for both the Midget teams and we will see an expense of greater than $20,000. With this in mind, we are anticipating a loss for the 2016/17 associated with this expense but as described this expense was truly shared throughout previous years and the player fees will not be changed for this reason.
2 players were injured for the season & a portion of their fees were returned. Thus, revenues were slightly lower as a result.
While revenues were off budget our expenses remained under budget as well and ultimately resulted in the break-even year.
In summary, SEAC remains financially strong enough to meet its requirements for the near future and we anticipate our cash position to erode following the Jersey purchase and other capital expenditures planned.
Information specific to the 2015/16 Season
2015/16 expenses totaled $356,696.18 for all three programs combined. I refer to the financial statement for illustration of the expenses.
The large majority of the fees are made up of the following areas. Ice fees ($45M), ref fees ($9M), travel (bus) costs ($76M), hotel & food costs ($73M), and honorariums ($33M). These alone equate to roughly $240M of the $360M total costs.
General expenses are another ($60M) and include such items as the jerseys/player and coach track suits/player hockey bags/trainer supplies/website design fees, team pictures, program costs, League meeting expenses, coach development courses ect….
The remaining expenses are more easily described in the budget and I refer to the same.
The program requires a significant amount of money to run smoothly and with expenses expected to grow in time as ice costs, travel costs etc... get more expensive we will need help from families even more to avoid any fee increases.
We have set a "standard" for the program and while it is actively debated it is not going to change. We want the SEAC players fed and rested properly and we require a bus that is deemed safe to transport our players to and from the games. As such, we will not entertain a smaller busing company to save on some expenses. We understand some families have requested to be allowed to ride the bus to reduce costs to families but the board has decided this will remain the policy.
Players will stay 2 to a room and have their own bed – while slightly more expensive we believe players will be more rested.
Food – players will have food provided ensuring they get the nutritional requirements they need.
In order to meet the expenses discussed above we have set the player fees at $3600 per year for the last two years with the addition of the program advertising requirement. Collectively, these two sources of income generate nearly $260,000 of the required $360,000 in costs. Two other sources of income come from MHMHA and Medicine Hat Tigers 50/50 which combined is roughly $60,000. The remainder of revenues has come from pre-season fees requested from families to meet the pre-season costs which have varied between teams, the "club fee", and "other" fundraising.
Our goal is to keep fees the same or even find an avenue to reduce the same. However, in order to keep fees unchanged &/or reduce the same we need the help of everyone. We are looking at new fundraising initiatives and are open to discussion on this item. If we can raise more money than we budget for other fundraising we could reduce the overall fees to families. However, fundraising requires a collective effort. The benefit has to be "all families" versus "individual families".
In conclusion, we have tried to improve upon the program with the ultimate goal that we create a positive experience for each player and family at a cost that is less or equal than other programs.
Playing hockey at the rep levels is an expensive endeavor & we have seen families unable to participate for this reason alone. Our desire is to see all kids have a chance to play at this level and hope finance isn’t the reason that a child cannot play but undeniably there are times when this will occur.
We understand we are cheaper than most organizations and we also believe we provide additional services most organizations do not & simply cannot. This includes a SEAC weight room and on-site skate sharpening. Both were introduced this year and are included in the fees paid. All teams have designated dressing rooms with the Midget AAA and Midget 15's teams each having their own full time. The Bantam team has access to the old Tiger visitor dressing room with access to storage for player equipment, drying rooms, and other equipment belonging to the team.
SEAC is planning other initiatives this year which should further enhance the experience.
We have listened to families and have agreed to change the website platform. Please watch for the changes.
SEAC has hired the "Coach's Edge group out of Strathmore to assist with coach development. Medicine Hat Minor hockey has agreed to assist with costs associated with the same and thus this will not affect our overall budget planned.
Further improvements to the dressing rooms are planned for the Midget 15's and we have taken the advice from some to look for grants for the same. We currently have two applications outstanding and anticipate this may alleviate any higher funding requirements.
Plans to introduce nutritional development.
We would like to thank all the players, families, coaches, managers, trainers, and volunteers that helped in any way last year.
Good luck in 2016/2017.