05 Jul Reconstruction of Financial Assistance Agreement – Department of Sport & Recreation
Members attending the 2016 Annual General Meeting were briefed on issues affecting the Club. A major issue was the problems relating to the reconciliation of the Financial Assistance Agreement (FAA) with the Department of Sport and Recreation (DSR) that was initiated to largely build the infield pits for TourismWA’s contract with (then) V8 Supercars. As a result, a provision in the 2016 accounts of $653,000 was reported to members.
Notwithstanding that previous financial years had been independently audited, WASCC were ordered to produce reconciling evidence of all expenditure related to the FAA. This was problematic as:
- The majority of invoices relating were beyond the requirement to keep for archival purposes,
- The Club’s archival records had been compromised, and
- the quarterly reconciliation obligations of the FAA had not been undertaken at the relevant time which would have negated the need for this time consuming and costly process.
During the past months the Club, through various means, has reconciled with invoices all but approximately $29,000 (less than 0.2%) of the project value (in excess of $15 million). As such, the Club is confident it has demonstrated best possible endeavour and good faith and will be asking that DSR close this matter off so that we can proceed with important strategic planning and imperative capital commitments.