PURPOSE OF THE MEETING

1. PURPOSE OF THE MEETING This meeting is intended to provide an opportunity for our members to; • Be informed as to the current status of affiliation with Australian Canoeing • To understand the process of setting the National affiliation fees and the proposed models of setting future fees. • To challenge and understand the range of services and value for the level of affiliation fees set by AC. • Understand the impact of the fees to the State initiatives and development • Discuss the requests from AC to restructure the CV Accounting and funds available to pay for Association liabilities such as affiliation fees from 2011-2012 • Provide feedback to both the CV and AC Boards and Executive on the way forward.

2. Outcomes • Clear direction from members to CV Board regarding restructuring discipline finances • Clear direction from members to CV Board on negotiating future affiliation fees. • Feedback to AC on future Fee model

3. Affiliation Fees The Board of Australian Canoeing sets the affiliation fees for all the States.

4. CV Budget 2010-11 • 2010/2011 budget set membership income as $90,000 based on previous membership trends. • By the end of July, trends strongly suggested that a better forecast of $75,000 should be reflected.

5. COMPROMISE FOR 2010/2011 • With the revised budget, CV were of the view that it could not afford to pay the full fee of $53,000 • August: CV sought a reduction in Affiliation Fees • December: $40,000 was agreed with AC for 2010/2011 • December: $40,000 paid in full. CV fully affiliated with AC • Agreed to pay more if membership income increases

6. Feedback

7. Affiliation Fee Model

8. Previous Models • Capitation Model • Per head cost per member • Population Based Model • Set administration fee by AC ($250,000) • Divided amongst states based on population based • Hence NSW and VIC biggest % of fee.

9. CV History

10. CV’s Position on AC Fees • 50% of membership income (or $40,000) is still beyond the long-term financial resources of the State. • inhibits both seeding project initiatives and support of existing activities to grow the participation in Canoeing. • Administration cannot financially support the disciplines in development • Undue pressure to raise additional funds to pay Fees not for development • The Eildon Challenge is an example of an initiative that suffered due to lack of seeding funds and support.

11. CV’s POSITION - AFFILIATION FEES 2009/2010 • 50% of expenses went to AC Affiliation fees (excluding grant expenditure) • 73% of membership income paid AC Affiliation fee ($58 from $85 membership fee) • 50% of discretionary income went to Affiliation fee (including membership income and supplementary income - excluding grants)

12. CV’s Position on AC Fees • Current Affiliation Fee model: • Is unfair for Victoria • Does not support the State or Grassroots development • Inhibits growth strategies and state initiatives • Will financially cripple state in short and long term.

13. Process for Future Models • Post Loan Affiliation committee formed • AC to provide update • CV Proposed AC Strategic Forum • % of membership income fee for each State • Capped

14. Feedback

15. AC Requests

16. CHANGES THAT AC REQUEST CV TO ADOPT As part of the proposed compromise adopted for 2010/2011, AC have requested changes to the way CV have historically maintained the accounts and what funds are accessible to meet liabilities. In brief: • All income be available to pay AC Fees.(including disciplines, sponsorships and fundraising) • Consolidate discipline accounts with Admin • Inform members • AC do not agree with ‘ability to pay or inability to pay’ based on the exclusion of discipline income.

17. CURRENT PRACTICE • The Legal position: All finances reported in the audited consolidated accounts for Canoeing Victoria are deemed as Canoeing Victoria’s and therefore available to pay debtors if necessary. • Discipline funds have been used controversially in the past to meet Association liabilities namely debts to Australian Canoeing to the detriment of trust and discipline development.

18. Current Practice Discipline have: • Separate bank accounts and MYOB files • Presents a budget to the Board each year. • Contribute to admin costs.(insurance, audit fees and an admin)

19. Discipline Performances • Participation is in decline across the board • Income is in decline • Volunteer base is deteriorating • State based junior development is almost non-existent • Competitive members are in decline • Facilities are not being developed

20. PAST, CV “DISCIPLINE” FINANCIAL PERFORMANCE

21. NET RESULT OF CV DISCIPLINE PERFORMANCE SINCE 30TH JUNE, 2005

22. Benefits • Centralised accounts and procedures • Alleviate volunteer work load • (although increase paid work load) • Simplify Audit procedures • (although audit fees will not be decreased)

23. Feedback

24. Outcomes • Clear direction from members to CV Board regarding restructuring discipline finances • Clear direction from members to CV Board on negotiating future affiliation fees. • Feedback to AC on future Fee model