After financial struggles that required a municipal bail out, The Boys and Girls Club of Cochrane & Area is on the road to recovery despite being late submitting 2015's financial statements, according to the organization's executive director.
After financial struggles that required a municipal bail out, The Boys and Girls Club of Cochrane & Area is on the road to recovery despite being late submitting 2015's financial statements, according to the organization's executive director.
“We just wanted to make sure everything was in order, there was a transition in staffing and leadership and just to make sure everything is in order and reported correctly, ” said Shirley Puttock, of why the club has yet to submit its financial statements.
Registered charities in Canada have up until six months after the annual March 31 deadline to submit the charity return form to the CRA or the non-profit organization's status could be revoked, giving the Cochrane club until the end of September to file.
The Boys and Girls Club of Cochrane & Area (BGCCA) ran into financial troubles in the 2014/2015 operating year when it reported a $95,000 loss. It was then that the club's board of directors approached Cochrane's town council to ask for $50,000. It received $25,000 as a one-time grant from the Town of Cochrane, and a $25,000 loan from the Family and Community Support Services (FCSS) Operating Reserve - which was paid back earlier this year according to FCSS administration.
The loss was attributed to accounts receivables, bad debt for PlayDay fees, an increase in staffing resulting in high wages and benefits, and high rental costs, as stated in a previous press release. At the time, the club also announced six employees were laid off.
Later, another four employees were laid off. Puttock said currently the non-profit has “ample staff to run the child and youth programs ” with 22 employees and also noted no programs were reduced or cut due to the decrease in staffing.
“We are having our annual audit done now and we will have a balanced budget this year, ” Puttock said.
In 2011 and 2012, the club reported surpluses to the CRA with the 2011 operating year receiving $782,516 in revenue and spending $740,614 in expenses; and in 2012 receiving $988,711 in revenue and spending $921,045 in expenses - a total surplus of $109,568.
Puttock said because of the deficit for the last two years the surplus money “was spent. ”
In 2013 the club received $1,877,139 for revenue and spent $1,932,579 resulting in a $55,440 deficit. That year the club had 18 full-time and 18 part-time employees with $846,000 compensation for all positions, with six employees in the $40,000 to $79,999 annual salary range.
Then in 2014, the club received $2,040,517 for revenue and reported spending $2,135,630 for expenses with a $95,113 deficit. Despite the addition of a new program, the Youth Emergency Support Services (YESS), the club employed fewer employees than the year before, with 17 full-time and 12 part-time positions. The total compensation for all positions was $966,966 with seven employees in the $40,000 to $79,999 annual salary range and one employee in the $80,000 to $119,999 annual salary range.
The organization's expenses increased by approximately $1.3 million from 2011 to 2014 with records on the CRA website showing an increase of nine employees and one new program in that time.
“There was an increase in revenue to counter that spending as well, ” Puttock explained in an email - but could not be reached for further comment at press time.
With the financials of the 2015 operating year not posted, the financial state and current stats of the club are unknown but Puttock insists the budget will be “balanced ” by September.
“We are moving on from the hardship, we are done talking about it and done dealing with it and we are moving forward with our fundraising events and our programs, ” Puttock said.
“The staff never missed a beat with the programs and we are exceptionally proud of their work. They have done an amazing job to keep the ball rolling. ”
The Boys & Girls Club of Cochrane & Area (formerly Cochrane Youth Association) started in 1992 with a 12 person Board of Directors before receiving charitable organization status in February 1997. The club is currently governed by a board of directors, with the mission statement “to provide a safe, supportive place where children and youth can experience new opportunities, overcome barriers, build positive relationships and develop confidence and skills for life. ”
