ADMINIS TRAT IV E BUDGET AND FINANCE COMMITTEE T
he past three years, I have had the privilege of serving MAC as a trustee and viewing first-hand how well our club is run. While we all enjoy the facilities, atmosphere and camaraderie the club provides, behind all of that is a good- sized business. Part of what we see and evaluate as trustees is the financial operation of our club. I am happy to report another year of excellent financial performance, and pass along a few of the results to you. Our financial condition remains strong; in a review of MAC’s balance sheet, note that club equity grew by $3.7 million in 2010. Our balance sheet shows the obvious financial strength of the club. From an operating standpoint, revenues for 2010 were just under $29 million, a size that may surprise many members. The largest reve- nues are member dues ($18.2 million) and
Rob Thompson TREASURER
restaurant revenues ($6.2 million). These funds are spent wisely by staff, following the budget prepared by staff and reviewed in depth by members of the Budget and Finance Committee, then approved by the Board of Trustees. On the capital front, the club had a 2010
capital budget of $3.6 million on capital projects ranging from new transformers and switchgears to new equipment in athletic areas such as the Exercise and Conditioning Room and Pilates Studio. Many of the larger projects this past year were in areas most members never see, but were projects critical to smooth Club operations. Finally, I am pleased to report our investments grew by $2.3 million during the past year. There were three subcommittees this
year led by Past Treasurer Lori Hesse, Carl Burnham and Garth Nisbet. Hesse led a thorough evaluation of the budget review process, which the subcommittee found to be appropriate and reasonable. The budget subcommittee, led by Burnham, held eight meetings with staff to review management’s operating budget recommendations. The
INDEPENDENT AUDITOR’S REPORT CERTIFIED PUBLIC ACCOUNTANTS | BUSINESS CONSULTANTS INDEPENDENT AUDITOR’S REPORT
To the Board of Trustees and Members Multnomah Athletic Club
We have audited the accompanying balance sheets of Multnomah Athletic Club (the Club) as of December 31, 2010 and 2009, and the related statements of activities, changes in unrestricted net assets (Club equity), and cash flows for the years then ended. These financial statements are the responsibility of the Club’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit in- cludes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Club’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement pre- sentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Club as of December 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
Portland, Oregon January 21, 2011
FEBRUARY 2011 | The Wınged M | 17
club has a formal financial policy to guide the significant financial operations of the club. Nisbet led the subcommittee that conducted any review of that policy. The remainder of the Budget and Finance Committee were Tim Brackney, Jeremy Burroughs, Fred Gast, Kirk Hay, Bill June (board liaison), Nelson Lam, Mary Manilla, Bob Nunn, Kim Sisul (board liaison), Bill Stevens and past Treasurers Jim Flynn and George Hosfield. On behalf of the membership, my deep thanks go to this group for its hard work and dedication. The club also has an audit committee
comprised of three trustees, including myself, and one other member. I would like to thank Trustees Vicki Tagliafico and Darwin Green plus Tim Gillette for their service. I would also like to thank Tim Arbogast,
CFO and assistant general manager, John Foley, controller, and Belinda Potts, admin- istrative assistant, for their hard work and support throughout the year. The infor- mation and perspective they continually provide is truly exceptional. WM
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