Finance

Documents referenced in the letter below:

Profit & Loss Statement: 2011 – 2015
Balance Sheet: December 31, 2011 – December 31, 2015

Dear Members & Friends of the Westside Club,

The House Committee has undertaken a review of the Club’s financial status. While the Club remains financially solvent, there is a clear need to modify how the Club operates based on the results of our review. A finance subcommittee has been convened to oversee the changes required to strengthen the Club’s financial position.

Here is the high-level overview:

Prudent reserves have fallen from $xx,xxxx in 2013 to $xx,xxx as of December 31, 2015. [See Balance Sheets]
The Profit & Loss (P&L) reports show a net loss of $16,000 in 2013 and a net loss of $17,000 in 2014.
In 2015, a net loss of $37,000 was reported.* [See Profit & Loss Statements]

* The 2015 net loss is slightly misleading. Due to the changes in management of the Club in December, end-of-year membership renewal notices were not sent out before December 31. Those renewals are going out now. Had those renewals been received in 2015, we expect that the 2015 loss would have been closer to previous year’s losses. We will know for sure when December renewals are received.

Who is responsible for the current financial state of the Club?

The current financial state of the Club is the culmination of many small issues that built up over time, including increased number of paid staff, insolvent snack bar, and financial controls that were insufficient to catch any issues early.

At this time, we have not uncovered any one specific issue that precipitated the current financial state. The bottom line is that the Club spent more than it earned for several years running. However, should any new information become available to us during our ongoing financial review, the House Committee reserves the right to investigate each issue and seek full remedy where appropriate.

A note about membership.

Membership remained strong in 2015 at levels comparable to previous years. However, due to an accounting categorization error, a portion of membership revenue was incorrectly classified as donations. This is currently being corrected and new P&L Statement will be made available once this is complete.

What is being done to address to improve the financial health of the Club?
We are addressing the three issues noted above – dependence upon paid staff, insolvent snack bar, and insufficient financial controls – in the following ways:

Dependence upon paid staff – reduce number of paid staff and increase volunteer participation.
Insolvent snack bar – streamline operations by consolidating inventory and review hours that the snack bar is open.
Insufficient financial controls – convened finance subcommittee comprised of individuals with professional experience in accounting and business management to strengthen financial controls, perform monthly financial reviews and budgeting.

Can I help?

Yes. Absolutely. We need your help.

In order to re-establish this Club as a bedrock of recovery in northwest DC, we need your help in the following ways:

Volunteer. We have a variety of volunteer positions – snack bar, clean up crew, membership & outreach, special events, website & social media, and more! Send an email to wsideclub@gmail.com and let us know how you can help!
Renew your membership. If you aren’t currently a member, please become one. You may do so online on the website, or in person at the Club.
Make a donation. Donations are tax deductible and can be made online or sent directly to the Club.
Put a few extra dollars in the basket. Did you know that $1 in the basket in 1934 is equivalent to over $17.00 today?

Thank you for your continued support. If you have any questions or comments related to the financial state of the Club – or regarding any other issue, please email wsideclub@gmail.com.

Kind regards,
Ann H.
House Committee Chair