What is a resource review?

A review of the available resources will enable you to make considered and realistic decisions about what you can do and when you can progress your recovery plan. It is a bit like a budget review and should include all resources, for example financial, human (staff), places and spaces (where your activity will take place) and equipment.

Objectives

A resource review will:

  • identify available resources
  • identify anticipated income and expenditure
  • provide clarity and visibility of future financial commitments
  • identify potential additional savings and expenditure relief options.

How is the resource review completed?

The review should be based on facts such as bank statements, last year’s financial report, recent financial reports/statements endorsed by the Board and realistic availability of places and spaces, staff, volunteers and equipment. You may wish to take both a best case and worst case view when considering all of the resources and it is important to get the right balance — just as in any normal budgeting/planning process.

To come up with a realistic understanding of the available resources you should not base your thinking on overly optimistic assumptions (for example, a large government grant, a new large sponsor or a significant rise in members or participants). Likewise, an overly pessimistic approach (for example, assuming high expenses and very low income) will not provide a realistic understanding of your resources and may result in minimal actions taking place, loss of members or limited motivation of staff.

While it may be tempting to take a scenario approach (for example, lifting of restrictions) this stage is focused on a point in time — which is now. The budget for recovery will be picked up in the final recovery planning process. This review is about knowing what you are starting with, what you cannot avoid paying, what income is locked in, what staff you have access to, and what venues, places and spaces you have access to.

There may be follow-up work at the end of this process. This may include contacting sponsors to confirm their position, investigating the ability to re-purpose funding grants, local government fees/leasing costs, plans of other venue/land managers and re-opening of places and spaces, relief funding/support, etc. Once the follow-up is done you may need to reconvene to update the review, so that it is as realistic as possible.

While the current environment may not lend itself to an extensive consultation process, there are some key people who should be involved in this review. They include the Treasurer, Chief Financial Officer, CEO/President, relevant budget/line managers and other people involved in finances. For a sector-wide review, you should consider representatives from the key stakeholders (for example, local governments, government departments and key community leaders/volunteers.

Preparation of the resource review

The following questions and guide may help you develop a clear picture of the current resources and income/expenses for the organisation, activity, program or region. Some parts may not be relevant, and some organisations will need a far larger list of considerations. Do not forget that there may be some follow-up actions that need to take place before the real situation is understood.

Expenses

The following questions will help you complete the ‘income table’.

  1. What are the expenses, bills, payments that you must make in the future? This may include internet, phone, electricity, local government fees/leases, staff costs, loan repayments, equipment hire, payments to your State/national sporting association, insurance.
  2. Write down the estimated monthly cost based on previous years/months.
  3. What are the usual timings for these payments? For example, monthly, in a specific month, end of the season, etc.
  4. Identify which payments can be reduced through discussions with the local government, your State/national sporting association, suppliers, insurance broker, accessing State or federal relief funding, reducing staff hours.
  5. Estimated reduction based on the discussions/negotiations.
  6. Immediate actions: who will follow up on the negotiations, discussions, actions to reduce the costs?

Income

An ‘income table’ approach may once again be helpful to understand your income.

  1. Where does your organisation, program or activity receive its income from?  This may include donations, sponsors, membership fees, local government grants, funding from your State/national sporting association, commercial ventures, etc.
  2. What are the usual monthly amounts (and note if this is an annual/once off payment)? For example, from a sponsor.
  3. When do you get this payment or have you already received it?
  4. What are the conditions relating to the income? For example, is it subject to delivering a program, promoting a company, or running a season, event or competition?
  5. Who can you talk to and what discussions can be had to shore-up the payments? This may include bringing forward grant or sponsorship payments to help with cashflow, or repurpose program funding, etc.
  6. Immediate actions: who will follow-up on the negotiations, discussions, actions to shore-up the income? Once the discussions have been held, come back and update this table.
  7. What access does the organisation have to federal and/or state government support related to the pandemic. If an employer, has the organisation checked its eligibility for “Jobkeeper” subsidy and have all related enrolment and payroll processes been completed? Is the Business Activity Statement (BAS) up to date to ensure access to the “Cash Flow Boost” scheme? Has the organisation researched the Lotterywest grant opportunities now available to sporting organisations?

Places and spaces

Land managers (for example, local governments) are taking slightly different approaches to managing their facilities, venues and ovals in the current environment. Some teams and clubs also operate out of multi-sport venues or train/compete outdoors, compared to others that train indoors. Program delivery agencies and tracks/trails maintenance crews may also be diverted to higher priority local government response initiatives.

The variety of places and spaces that we use for sport and active recreation is varied and diverse across the State. Therefore, we will take a simple ‘place and spaces table’ approach to identifying the availability of places and spaces that can be referred back to when developing the recovery plan. State/regional level organisations may want to take a general/summary approach rather than going into the specifics for each club.

  1. Start with breaking down your activity into sub-groups. For example, is it training, games, training for Team A or Team B? Is it only one activity, for example, trail walking, afterschool program delivery? You may also need to break this down further, for example, a club may have an office area, changeroom, storage space, etc.
  2. Where is this activity usually held? For example, an indoor hall, oval at the club, the local trail network, etc. You may also need to break this down further. 
  3. Describe the place or space. For example, an open oval, indoor multi-court venue, public trail network or school oval.
  4. Who controls the land or venue? Is space rented from the local government, managed by the club through an annual lease, open to the public, owned outright by the regional or State sporting association/activity provider?
  5. Note any key actions that need to take place. This may include reviewing the local government’s position of opening their venue, what controls are/will be in place (for example, is the mountain bike trail opening once a specific restriction is lifted?), renegotiating rental/lease periods for an oval/venue. This should also include noting any key dates, which may include the end of the winter sport lease and the start of the summer sport lease. Planned maintenance on the track/trail, upcoming school terms/holidays, etc.

Staff/volunteers

The availability of some staff/volunteers to remain involved or to return to the activity should be noted and fully understood. Paid staff may have had to be let go or hours impacted due to the organisation/club’s income. Regional areas may have lost staff/volunteers due to families relocating. Winter sport volunteers may also volunteer at summer sports so their availability may decline after the usual winter sport season. Staff at local governments or delivery agencies may have higher priorities in other areas/projects.

A simple paragraph/statement should be ample information for this part. For example: staffing levels have been maintained through Jobkeeper, all volunteers remain committed to their winter sport roles (it is a good idea to check first), the club’s umpire starts commitments with a summer sport on 1 October, the majority of elderly volunteer guides are following strict/long-term self-isolation guidelines.

Equipment

A quick stocktake of equipment will help you understand if things are ready to go once the restrictions are lifted. Some summer sports will need to get their usual uniform and equipment orders in early due to longer than normal production/delivery times. Winter sports may want to confirm the location and status of their equipment. You can use the organisation/club’s usual asset management plans or check with your State/national sporting association. Failing that, there are many options for recording/managing assets/equipment so find the best fit for your organisation. The starting point will be to list the equipment, condition (new, good or old), estimated time it will need replacement and estimated cost.

Expenses table

A B C D E F
Future expenses Monthly cost Payment timing Potential for reduction Estimated new cost Actions
      

 

Income table

A B C D E F G
Income source Monthly income Income timing Conditions Securing payments Actions External support

 

Places and spaces table

A B C D E
Activity sub-group Activity location Description Controlling authority Actions

 

Related pages

Page reviewed 25 June 2019