Jeff Phillips
THE Wanganui Rugby Union is set to pack down for a new season in a financially viable state with new structures in place despite posting a $128,000 loss for the 2013/2014 fiscal year.
New union chairman Jeff Phillips said a number of factors contributed to the loss, but conceded better procedures needed to be introduced to run the organisation as a business model.
"We will begin this new season with all accounts paid and the deficit covered from funds we had available through astute investments made by previous boards and we still have a sizeable kitty," Phillips said yesterday.
"It's unfortunate to post a deficit, but it hasn't broken the kitty and we will start the season with a clean slate."
While the board received bulk funding each season from New Zealand Rugby based on registered player numbers from the previous season and extra funding to help pay for the Heartland coaching staff and travel costs to away fixtures, more money was needed to run the provincial union.
"Last year we had several applications for funding from various trusts turned down and sponsorship was also down, although union staff and board members are probably guilty of not chasing sponsorship as vehemently as we could have," Phillips said.
"The Heartland draw didn't help last season with so many away games. While we get assistance from NZR for travel, we still have to pay for accommodation and other incidentals. Then we had a one-off bill for new jerseys we ordered for all representative teams from the under 11s to the Heartland and Maori teams and that wasn't cheap. We won't have that costs for another few years."
Life member and former WRU chairman Brian Vaughan raised concerns at last week's special financial meeting about the auditor's ability to decipher the books and said there did not appear to be any internal audits or risk analysis structures in place to keep track of things and hold staff and board members accountable.
"We are an organisation which operates on public funding and taxpayer income and therefore the leadership of the union should be held to account in terms of their responsibility to their shareholders, who are the clubs.
"The clubs own the union and they deserve better in terms of respect and transparency as they delegate the duties to a board and staff for day-to-day management," Vaughan said.
"During the year NZR changed from a MYOB accounting system to the new quite different ZERO system. The codes were all different and the auditors had problems reconciling figures under the new system," he said.
He conceded that in the past the board had perhaps relied too heavily on reports from chief executives and staff.
"The union is a business and needs to be run as a business. In the past we have had people passionate about rugby who may not have been business people - their hearts have been in the right place. This season we have formed a special finance sub-committee involving board members with business acumen to liaise closely with new chief executive Bridget Belsham who starts on March 2," Phillips said.
"Bridget brings a strong banking background to the job and a proven record in this field, so things will be much different in the future."
The Wanganui union is not alone in dealing with deficits.
The Wellington union is already looking at a potential $750,000 loss or possibly more for the year, while the East Coast and Wairarapa-Bush are also looking at losses.
Ongoing costs for Wanganui include the rental of Cooks Gardens for Heartland home fixtures and some clubs were keen to a move back to the far cheaper option at Spriggens Park.
Mr Phillips would not be drawn on that debate, although he was keen to look at any cost-saving exercises.