Make or break for M’boro RSL financials
THE new leadership team at the Maryborough RSL Sub-branch will need to begin crunching the numbers with urgency if the club is to avoid running out of cash reserves this year.
Auditors say the RSL's financial situation needs to be treated as a top priority in the next 12 months or it risks becoming insolvent.
Members elected Paul Coleman as the new sub-branch president at Sunday's AGM.
Mr Coleman pitched to members before the vote that he would use best business practice to turn the club's financial situation around.
He unseated now former president George Mellick for the top post.
Auditor Lachlan Graff, representing RWM Chartered Accountants, dissected the club's financial performance for 2019.
He said cash reserves were of particular concern and needed to be the focus this year.
The club's financial report revealed the association had "incurred consecutive years of losses that have reduced liquidity".
According to the report, cash reserves had fallen by $982,222 during the past three years - an average of $327,407 each year.
Cash at bank at the current balance date was $317,137.
"The association is in danger of exhausting cash reserves during the 2020 financial year, placing (it) at risk of becoming insolvent," the report read.
Mr Graff said it was important for the club to cash in on the number of people who use the venue.
"People are still coming through the doors and trade is strong. The club must capitalise on that," he said.
Mr Graff said it was essential the new board addressed the falling liquidity as a matter of priority.
Speaking to the Chronicle after the AGM, Mr Coleman said he hoped the club would begin to "settle down" so the sub-branch could focus on assisting veterans.
He said it was important the club's finances were turned around.
Meanwhile, Queensland RSL has previously noted concerns about the club's financial position.
An independent external investigator has been tasked with probing management issues at the sub-branch, as well as its financial position.
Wide Bay Burnett District president Trevor Williamson told members at the AGM the investigation was ongoing and interviews were expected to begin on site next month.