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Crookes social club

goodie

By goodie
in Going out in Sheffield

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rivermusic92 Newbie

rivermusic92

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Breaking News - Crookes Social Club Concert Secretary resigns amidst controversy!

 

Members of the Committee were presented with copies of the Club’s Financial Statement for the year ended 31st December 2010 at the Committee meeting held on the 18th May 2011. The former Club Concert Secretary, Mr. Neil Cardwell, noted several anomalies, including issues regarding revenues from, and payments made for the rental of, gaming machines. When this issue was raised by the former Club Concert Secretary, the Club Treasurer and the Club Secretary could not explain how or why these anomalies had occurred. Although the former Club Concert Secretary was already considering his position, this was the final nail in the coffin as, whilst not inferring any impropriety, this was, in the former Club Concert Secretary’s opinion, another example of how the Club’s finances are not being controlled with due diligence. Therefore, the former Club Concert Secretary gave notice to the Club Committee that he intended to announce his resignation at the forthcoming Annual General Meeting to be held at the Club on Sunday 22nd May. To ensure a smooth transitional period the former Club Concert Secretary offered to stay in post until a new Concert Secretary had been selected. The former Club Concert Secretary also decided to delay the raising of other anomalies with regard to the Club’s Financial Statement until they could be addressed to the Club Membership at the forthcoming AGM.

 

Although the Club Treasurer might be expected to perform financial analysis, the former Club Concert Secretary has been conducting financial analysis on behalf of the Club to determine which areas of the Club’s activities were responsible for the Club losing money year on year. The drop in the Club’s bar sales by almost £27,000 between 2009 and 2010 demands a response from the Club Committee. The former Club Concert Secretary expected to have the opportunity to present the findings of this analysis to the Club Members at the AGM before announcing his resignation.

 

When the Club Annual General Meeting was convened on May 22nd 2011 the issue of the anomaly with regard to income from, and rental of, gaming machines was raised from the floor. Once again the Club’s officials could not explain these anomalies and the Members voted not to adopt the Club’s Financial Statement until after investigations had been conducted. The former Club Concert Secretary decided not to raise any issues regarding other anomalies until after he had resigned.

 

The Club’s AGM was conducted hastily and without consideration to due process. The Club Membership were not provided with copies of the Club’s Financial Statement prior to the AGM so that they could give this document due consideration. Also, despite the Club Committee being given prior notice by the former Club Concert Secretary that he wished to announce his resignation at the AGM, he was not given the opportunity to do so and he was not given the opportunity to present the results of his financial analysis. The Club President rushed straight from considering one item regarding subscriptions under ‘Any Other Business’ to a minute’s silence for deceased members and then promptly brought the meeting to a close. The former Club Concert Secretary protested to the Club President, but was told by the Club President that provision for him to speak had not been made on the AGM agenda. As a result the former Club Concert Secretary informed the Club President that he was effecting his resignation with immediate effect.

 

The former Club Concert Secretary has no confidence in the Club’s Officers or in the information that they have provided to the Club’s Auditors in order for them to prepare the Club’s Financial Statement.

 

In 2010, through admitted negligence, the Club Secretary and the Club Treasurer allowed £11,234 of the Club’s takings to disappear without them being able to trace this money or provide sufficient evidence as to who had taken it or who had been responsible for it when it had been lost. When the Club Steward was asked to resign he did so on the understanding that the Club Treasurer and Club Secretary also resigned their posts as they had all been collectively responsible for the Club’s funds being lost. The Club President assured the former Club Steward that this would be the case. However, the Club Treasurer and Club Secretary have continued in their posts without interruption.

 

Whilst conducting an analysis of the Club’s finances, the former Club Concert Secretary has been provided with a detailed breakdown of the Club’s takings for every day that the Club had operated in 2009 and 2010.

 

1) On page 3 of the Club’s Financial Statement the statement shows that Bar Sales totalled £328,281 in the year ended 2009 and £308,786 in the year ended 2010. These figures do not incorporate VAT. When VAT is added, at a rate of 15% for 2009 and 17.5% for 2010, total bar sales should amount to £389,023 in 2009 and £362,824 in 2010. According to the figures provided to the former Club Concert Secretary actual bar sales in the Club during 2009 were £390,893 and £363,949 in 2010. This is a difference of £1,870 in 2009 and £1,125 in 2010. Why are accurate figures not reflected in the Club’s Financial Statement?

 

2) On page 6 of the Club’s Financial Statement payments to the Entertainment (Concert) Secretary is shown as being £936 for the whole year. This figure is far less than what was actually paid to the Club Concert Secretaries who were in post during 2010 and could be wrong by as much as £624. Why aren’t the correct payments accounted for in the Club’s Financial Statement? If the figure in the Club’s Financial Statement relating to the Concert Secretary’s remuneration has been manipulated how many of the other figures, particularly those representing payments to Club Officials, have been similarly manipulated? Why is there no audit trail for payments made to Club Officials?

 

3) The Club Committee and Members were paid £3 for every duty they performed in the Club throughout the year. These duties included selling bingo and open the box tickets, calling bingo, checking the bingo etc. Each Committee Member was also given a one off payment at Christmas. Apparently this is an annual event. There is no audit trail for any of these payments and none of them are signed for. On page 6 of the Club’s Financial Statement the figure shown for payments to the Club Committee is zero, how can this be?

 

4) Payments, in cash or in kind i.e. beer tickets, are often paid to Members who perform other duties for the Club, e.g. rearranging the seating and tables in the Concert Room, grounds maintenance etc. Where are these payments shown in the Financial Statement?

 

5) Beer tickets are also used as prizes for quizzes etc, where is this accounted for in the Financial Statement. At whose discretion are beer tickets given out without being accounted for?

 

6) In most Social Club’s the Secretary is responsible for the ordering of stock from suppliers. This is done to prevent excessive ordering and possible fraudulent practices by any staff who are also responsible for selling the stock ordered. At the end of 2009 the Club was criticised by the appointed auditors for carrying excessive stock to the value of £17,762. At the 2010 AGM the Membership were told that this would be resolved and that stock levels would be reduced. Instead, stock levels were increased to the value of £19,147 at the end of 2010. Once again poor sales performances over the Xmas period and a change in VAT rate were blamed. However, what actually happened was that the Club Steward was not controlled and he was allowed to order too much stock. Some of this stock was sold in the Club after its best before date had expired and large amounts of other stock was sold off cheap to get rid of it. This will obviously have an effect on the profitability of the Club for the current year. The ordering of bar stocks is still left to the Bar Staff to perform.

 

7) Some Club Members have been asked to loan the Club money. Initially this money was intended to form the basis of a deposit, with the ultimate aim of purchasing the Club from its current owners. Members were told that any money loaned would be 'ring fenced' by being put into a separate account that could not be touched were the Club to face closure. In reality, as of the Committee meeting held on the 18th May, the money loaned to the Club was held in the Club's operating bank account and would be lost if the Club were to face closure or be put into the hands of administrators.

 

It is not the former Club Concert Secretary’s opinion that payments should not be made to Members, including Committee Members, for performing duties for the Club. In fact a strong argument can be made for these payments to be increased to reflect the work involved and the value of this work to the Club. However, all payments made should be reflected accurately in the Club’s Financial Statement.

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