Scribd
Upload
22 views

Question - Nether Hampden Online Tutorial

The Nether Hampden Tennis Club had a cash deficit in 20X4 and membership has declined. The club's largest expense is rent which may increase. The committee could consider raising subscription rates, cutting expenses, or fundraising to address the deficit and rent increase.

Uploaded by

Allan Ghm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
22 views

Question - Nether Hampden Online Tutorial

The Nether Hampden Tennis Club had a cash deficit in 20X4 and membership has declined. The club's largest expense is rent which may increase. The committee could consider raising subscription rates, cutting expenses, or fundraising to address the deficit and rent increase.

Uploaded by

Allan Ghm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Activity 1

Question

The Nether Hampden Tennis Club


The Nether Hampden Tennis Club is an unincorporated association of about 60
members who play tennis throughout the summer months on two tennis courts
owned by the local village Parish Council. The Council currently charges a rent of
£3,000pa for the use of the courts, and for this sum the Council takes responsibility
for the upkeep of the court to playable standards. The Club however have built (with
the permission of the Council) a small wooden clubhouse alongside the tennis
courts, and the Club is responsible for all associated expenses.

Under a written constitution agreed by the members in 19X7, the Tennis Club is run
by a Committee of 5 members, including:

• a Chairperson (who presides over all official meetings)


• a Secretary (responsible for dealing with correspondence and for organising
competitive tennis matches with other local clubs)
• a Treasurer (who looks after all finances)
• an Events Organiser (responsible for organising various fundraising events
including a Summer Garden Party held each year just before Wimbledon
Fortnight – the whole village usually attends)
• a Diary Organiser (responsible for allocating court time to members using a
booking system)

The members pay a subscription of £100 per year to belong to the Club. There are
reduced rates for senior citizens and junior players. Subscription rates have not
changed since 20X1. Members are expected to attend fundraising events, participate
in team matches (when selected) and generally support the Club’s activities.

It is January 20X5 and the Annual General Meeting of the Club is being held in the
Church Hall. The Treasurer presents the following Cash Account to the members:
Nether Hampden Tennis Club
Cash Account
For the years ended 31 Dec 20X4 and 20X3
Year to 31 Year to 31
Dec 20X4 Dec 20X3
£ £
Cash receipts
Subscription receipts 5,790 6,020
Summer Party tickets sold 1,975 2,315
Other fundraising events - receipts 876 749
Interest received 5 27

Total Cash Receipts 8,646 9,111

Cash Payments
Rent paid to Parish Council 3,000 3,000
Summer party expenses - band hire 650 600
Summer party expenses - catering 760 640
Summer party expenses - wine and soft drinks 750 760
Other event costs 125 76
Coaching costs 1,000 1,200
Match fees 400 360
County Lawn Tennis Assoc. fees 950 990
Equipment (nets and tennis balls) 650 324
Wimbledon tickets 250 250
Competition prizes 75 75
Pavilion maintenance 230 150
Pavilion service (water, elec, etc) 95 86
Insurance 75 70
Stationery & Postage 76 68

Total Cash Payments 9,086 8,649

Cash Surplus/(Deficit) for the year (440) 462

Opening bank balance 1,483 1,021

Closing bank balance 1,043 1,483


The Treasurer also reports that membership has reduced in the new year, from 62 to
57, and that the Parish Council is seeking a rent increase from £3,000 to £3,500pa
from 1st January 20X5.

Required

Review the financial information provided for Nether Hampden Tennis Club and identify any
concerns you may have in relation to the financial situation of the tennis club. (Note –
calculating the % change for the main cash receipt and cash payment categories may help
you to do this.)

What actions might the committee take in relation to these concerns to improve the financial
situation of Nether Hampden Tennis Club.

You might also like