Audit & Finance Committee
Calvin Fong, Treasurer
The Audit and Finance Committee has a general mandate to assist the Board of Directors with monitoring and reviewing the acquisition, management and development of the human, physical and financial resources of Coast Mental Health. The Committee is also responsible for overseeing the preparation of the annual budget and advising the Board of Directors on financial policies and strategies as appropriate.
I am pleased to report that for the fiscal year ended March 31, 2009 Coast achieved an operating surplus of $208,021 against a forecasted 2008-2009 budget deficit of slightly less than $80,000. While this operational surplus should not be considered as available cash, it does serve to highlight the success of the belt-tightening and prudent fiscal management applied during the past fiscal year in the midst of the global economic turmoil affecting all of us. The operational surplus will be used to address current standing issues for internally restricted items including sick and severance reserve, capitalized assets, replacement reserves, property acquisition and payments to reduce principal mortgage amounts.
The 2009-2010 budget for Coast and the risk factors affecting our service plan is much more moderate than in years past. The Audit and Finance Committee has set a “sustainable budget” for the 2009-2010 fiscal year, despite the forecasted $154,500 budget deficit. The 2009-2010 budget is “sustainable” as it identified foreseeable revenues and realistic expenditures in terms of maintaining the future activities of Coast. The 2009-2010 forecasted budget deficit is primarily a result of addressing ongoing administrative infrastructure costs and the preservation of current services offered by Coast.
The operating budget deficit at the Resource Centre again amounts to annual cost pressure of some $250,000. This has been primarily covered in the past by fundraising activities done through the Coast Mental Health Foundation. In light of the economic turmoil that continues world-wide, the likely diminished financial assistance from fundraising towards operating the Resource Centre has been accounted for in the 2009-2010 budget.
The renewal of Coast’s accreditation with Accreditation Canada will generate short-term costs related to implementing recommendations that will certainly be balanced by projected long term saving from reduced risk and the development of best practices.
We have successfully developed and/or completing several major projects including a $1.7 Million Seniors project at Coastview Apartments, major envelope repair at Hydrex, and a significant renovation of the Resource Centre kitchen.
A key real estate acquisition for Coast in 2008-2009 was 283 East 11th Avenue. Other real estate related developments and opportunities include; Dunbar Apartments, Pender Apartments and Timber Grove Apartments.
Lastly, a big thank you to Tom Gill, CMA, Controller and his Accounting Department at Coast, along with our Auditors KPMG LLP, for a successful 2008-09 fiscal year end audit.
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