Board Orientation Manual 2024

3. Reports - Standing Committees and President and CEO a) Finance Committee

The pre-circulated financial report was reviewed, noting that the report included actuals to Dec 31, 2024 as well as anticipated expenses to the end of the fiscal. As we approach the fourth quarter of the fiscal, we are on target for the budgeted fiscal year deficit of $1,055,000, which was pre-approved by government, utilizing surplus at the end of last fiscal. We will be paying grants to 2028 host societies based on an agreement with the respective cities to hold the funds in trust (with interest, which goes directly to the Games legacy) until the host societies are incorporated, have a bank account, and the Agreement for Financial Assistance with our society is signed. While the 2024/25 budget was approved with a withdrawal of $170,000 from the Powering Potential Fund (PPF), the plan is not to do so, as all expenses can be paid from within this years’ budget. This will leave these funds available for future years. It was noted that close to $80,000 is needed each year to carry out the commitments from the PPF (host society equipment and infrastructure and awards). Each year $250,000 is available for Team BC through viaSport. $530,000 of the year-end funding received in 2024 was allocated to Team BC and supported both general operations, uniforms, and pre-planning for the 2025 Canada Summer Games. At this stage, funds available for Team BC are sufficient for the 2025 Canada Summer Games and will support some pre-planning for the 2027 Canada Winter Games. It was noted the Balance Sheet at December 31, 2024 shows no funds in GICs as funds have been kept in a high interest savings account for the past year, which has been earning more or as much as GICs. 2025/26 Budget The draft budgets for 2025/26, 2026/27, and 2027/28 were reviewed. It was noted that over $900,000 deficits are anticipated in each year. The rising costs of external transportation and the general cost of doing business, which continue to increase considerably, contribute to these deficits. As a Crown we can’t run deficit. The request for approval to show a deficit for the next three years has been received by government. We will use the remaining cash portion of the Retained Earnings (just over $315,000) in next fiscal to offset some the deficit and a commitment has been received from government to provide $597,000 in next fiscal to cover the remaining deficit. The government will look at each of the subsequent years one at a time so at this time there is no commitment to additional funding beyond next fiscal. There was discussion about the need for a lift to base funding, which has not been increased in 16 years. Government is aware and knows the organization is not sustainable at the currently funding level. There was discussion about opportunities for donations and corporate partners as well as presenting a case that the Games address some of priorities of government to justify increasing funding. Niki thanked Amy and Sport Branch for their ongoing support of our organization. Requests for Proposals Staff reported that three proposals were received for the Auditor. The review committee is in the process of evaluating the proposals and will meet later in February to discuss and then make a recommendation to the Finance Committee. The Request for Proposal for the Busing Contractor has been released and one for Accounting Services will be released in the coming months.

BC Games Society Board Meeting Minutes – February 12, 2025

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