Aurora
Cultural Centre – 2011 Financial Statement
Thanks very much for
helping to get everyone access to the newly posted financial
statements.
The web address on
your blog had some errors in it so it couldn’t be used as a direct link but it
was easy enough to find it now at the Town’s website.
(see http://town.aurora.on.ca/app/wa/mediaEntry?mediaEntryId=60003
– the 2011 audited report are pages 9-18 of the pdf file.)
I am surprised that
no one has commented on the financials and on the 2012
budget.
It is interesting to
note that in 2011 of the $527,360 of revenue that they brought in only $100,757
is revenue from programs. The remainder is from grants, donations and
fundraising with the majority of course from the town at $346,460. (page 2 of
Audited 2011 financial statement from MSM+F accountants)
So if the Centre is
ever to be self-sufficient they have a long way to go to replace the Town’s
grants since in the 2012 budget they show that they’ll run a deficit of $9,224.
But that won’t be a problem for them as they have “banked” much of the grant
money in 2010 as they have net assets of $363,392. (Of course I assume much of
that is the Town’s grant money sitting in their bank
account).
I found it
interesting to note on page 5 the remark under 2. Significant Accounting
Policies section b) Contributed Services it states: “A substantial number of
volunteers have made contributions of their time to the Organizations
operations. While these services benefit the Organization considerably, these
contributed services are not recognized in the financial statements.” This I
assume is not unlike many organizations in Aurora and in other towns where
volunteers greatly contribute to the success of the
venture.
Later in the
financial statement on page 8 under 8. Economic Dependence it states: “The
Organization’s revenues, substantially derived from grants amounting to $346,460
(2010- $340,000) are received from the Town of Aurora. … In addition, the annual
rentals payable under a lease with the Town of Aurora are for $1 per
annum.”
Although they mention
the volunteers, they do not mention that the Town also provides the maintenance
and utilities on the building to the sum of $150K. I mention this because if the
Town ever cuts off its funding the Centre will also be responsible for this
$150K which will be a further burden on its financials. (Someone reading the
statement without prior history may not be aware of this information). And in
fact the Centre would also have to pay rent for the facilities. How much would
the rent be at market value for this size of complex?
If the Centre is ever
to be self sufficient then they have a big job ahead of them replacing the funds
that the town is now contributing. If it is not to be self sufficient then
everyone should be climbing to get in for all the free programs as we’re paying
for it regardless of their program revenue.
I think the Town
needs some additional numbers from the Centre in order to make any proper
decision such as of the reported 20,000 visitors in 2011 how many were paid
visits (i.e. art, music, heritage course program registrants or concert goers)
versus non-paid visits like art gallery walk-ins? (something I did myself on a
recent Saturday). Of the 20,000 visitors how many are unique visitors? As it
still stands if the Town is contributing $500K per year and they have 20,000
visitors then the Town is subsidizing the running of the place at $25 per visit
(whether the people are paying or not).
An example of another
Aurora organization that is subsidized is the Aurora
Library.
The Aurora Library’s
2010 Annual Report (found at their website) states the following on page 9
under: Benchmarks.
On average 100 people
visited Aurora Public Library hourly in 2010.
Quick
Facts
Visits to the library
in person 323,024
Website visits
209,952
Material borrowed
648,075
Programs presented
660
Program attendance
11,497
Number of registered
members 31,855
Population of Aurora
55,000
The Aurora Library
received $2,852,967 in 2010 from the Town so it could be argued that they it
costs $8.83 per person visit. I recognize that the Centre is not as well
established as the library but I present these numbers for comparison.
I truly am not for or
against the Centre, just that things should be run fairly and equally like other
entities supported by the Town. Perhaps it can’t be treated like any other
entity but there still has to be value for the money even if it is subsidized.
And perhaps that’s the problem of measuring how it is valued when it is so
heavily subsidized. On the other side, if it continues in its current model then
they need to increase their user base (whether paid or free) so that they can
get a greater number of users and thus a lower cost per visitor.
Without measureable
parameters and goals and even incremental decreases in funding from the Town,
there may be no incentive for the Centre to expand its reach into the community,
for it to garner alternative funding and for to grow independent from the Town
(if that is its goal). At some point the Town may simply decide enough is
enough, cut its funding completely, take back the building and the Centre will
close. And then it could be argued that the investment by the Town, the
volunteers and the Centre will be lost.
I believe that if the
Town wants to continue its support of the Aurora Cultural Centre the Ad Hoc
committee can’t just do a tweek of the current agreement but must redefine its
value with measureable parameters and goals so that everyone can clearly see the
value from the $500K + free rent that the Town is providing to the Centre and
ultimately back to its citizens. If it can’t do this then perhaps it is better
to use the building and the funds in another manner be it still for culture or
another purpose
.
Posts
11 comments:
Excellent well said Paul!
A # of councillors, including the Mayor, ran on their backgrounds in business. The solicitor and Mr. Sesto have drawn a map for them to fulfill their pledges to reduce wasteful expenditures. It's past time for Aurora to see just how good these people are at reading statements.
It is refreshing to read Paul Sesto's analysis and comments.
Obviously he is someone who is familiar with Balance Sheets and Income Statements.
Completely apart from his remarks, the one thing that distinguishes the Centre from the Library is in the numbers of people who use the two facilities.
This is, no doubt, as a result of the very nature of the two.
A municipal library is a form of institution that is hundreds of years old, and is accepted as an integral part of a town of a certain size. There is no need to publicize the existence of a library; people take it for granted. People also support it because it provides information to those who enter its doors and programs for both young and old. Reading is a necessity in our lives and a library is there to assist us in expanding our knowledge of ourselves and our world.
A library is not something that is controversial. Oh sure, occasionally the selection of a given book for public consumption can stir up a bit of passion, and while there are those who will yell "censorship" these occasions are few and far between.
People willingly support a library because they see its need and its valuable place in the community.
The Centre was born during a political term that was rife with controversy of both a moral and ethical nature. The people who brought it into existence did so in private and the three agreements that established it and its lease with the town were prepared by a legal student. The town at the time did not have a Town Solicitor nor did the then mayor feel it necessary or desirable to retain an outside lawyer to assist in the drafting.
The people who signed the agreement to provide cultural services were not members of a board or any other body, merely shown as authorized, but by whom?
What was clear from the agreement was that the town was going to provide funding in the first part-year of $260,000 and thereafter $340,000 annually with an adjustment for inflation. Rent would be a nominal $1 per years. The cost to the town of providing, maintaining and insuring the building is on the order of $150,000 annually.
The people who initially got their hands on the Centre consisted of a small group of the former mayor's acolytes and they established an atmosphere that was the exact opposite of inclusive. Everything was in their hands, they knew what they wanted to do so they went ahead and did it.
When Council requested the present Town Solicitor to look into and prepare a report on the existing agreement between the town and the Centre, which he presented in early December last, it was obvious that there existed flaws, but also remedies.
Instead of keeping things simple and public, the Centre Board, which met in private, with Mayor Dawe in attendance from time to time, stated that its deliberations MUST remain confidential.
Rather than repeat the litany of the past nearly three months, let this conclude by stating that Mr. Sesto is absolutely correct. It's time to stop playing games with secret Ad Hoc Negotiating Teams or Groups or whatever they call themselves and turn the Centre into an inclusive public institution for history, heritage and culture.
Keep in mind that we should have as many votes at the table as possible. One stumbling block is Councillor Gaertner who voted NOT to approve the budget because it did not cut enough from the LIBRARY funding.
I really hate to play the heavy here. But here goes. The wild card is Mayor Dawe. Since his performance with the disastrous council meeting, he simply is not trusted. And we were the ones who supported him financially and morally when he ran for the position. The secret meetings, which he said he would do again, put him into a weird sort of limbo. Sorry.
Well done Mr. Sesto!
Amazing what a few facts can do to help clarify a situation.
What about it Mayor and council?
The taxpayers are footing the bill.
Are you going to let this ACC tail continue to wag the dog or are you going to take charge?
Kinda makes you laugh when you see ACC supporters strutting around Town Hall acting like the Town better go along "or else".
The Death of Culture!
Like a needy person warning the food pantry they had better come up with better choices or "I'll get my handouts somewhere else".
Well done, Tim the Enchanter!
In your typical anti-Cultural Centre zeal, you've also successfully managed to denigrate all those that find themselves in need of the food bank.
Amazing what a lack of tact and compassion can do to help clarify a sense of your character.
Anon 909AM
I see one of the 'gang' is on guard this morning.
What's the matter?
A little satire ruin you're morning coffee?
As with most posters on local blogs or media, I at no time demanded or suggested that the culture centre be closed or discontinued but that doesn't stop you folks does it?
Oh no.
It's either the ACC way no questions asked - or no way.
Well as far as I'm concerned - keep it up - because you're making a very strong case that the Town would be better off keeping our money and providing cultural services "in-house".
Town staff already do a great job on other programs and I'm sure they can handle this as well.
It wold be great to think that the Council were paying any attention to our ongoing concerns. But I have seen no evidence that our Mayor gives much credence to any who do not force their demands upon him. We simply do not operate in that manner and perhaps we should try to be more like the entitled bullies. The squeaky wheels really do appear to be getting oiled regularly and it's a shame.
9:09 AM
Missed the point as usual.
Enter left, right on cue, 9:09 AM, a wee bit late this AM. Never tires of the sound of it's one hand trying desperately to applaud itself. Poor, sad angry soul, the stalking horse of Aurora blogs.
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