Treasurer’s Report

Financial Results for the year ended 31 March 2022

The Singapore Gymnastics Treasurer’s annual report is intended to summarise and comment on the financial position of the SG and related matters. It should be read together with the audited accounts for the year ended 31 March 2022. As well as a commentary on audited historic information, a summary of the SG budget for the year ended 31 March 2023 is included to provide members with information about the planned future direction of SG and as a basis for approval of the audited accounts at the General Meeting.

Singapore Gymnastics recorded an operating surplus of $54,421 for the year ended 31 March 2022. This surplus is higher than planned. The favourability against the budget was driven by several factors: 1. Sale of the Artistic Gymnastics floor at Bishan for $15,287, 2. Increase in athlete membership income of $5,517, 3. Increase in the 2022 National Championships registrations of $11,132, 4. Increase in the net income of 2021 education activities of $12,147. 5. Reduction in the allowance for bad debts because of lower overdue debtor balance for the year as of 31 March 2022 of $7,984, 6. Decrease in National Training Centre overheads of $24,444.

SG’s total use of SportSG grant funding (cash and non-cash) including additional supplementary funding was $2,051,520, a 9.5% increase in SportSG funding utilised compared to 2020. This was predominantly due to: • Increase usage of venue hire for the National Training centre as the Covid restrictions lifted allowing more training to occur compared to 2020 • Weekly Covid testing for the National team • Purchase of Taishan equipment for the men’s and women’s programme

There was also additional funding received relating to One Team Singapore Funding (OTSF) of $35,000.

Income • There was an overall increase of total income of $277,476 or 10.6% from the previous financial year coming from the increase in the SportSG funding. • There was a 13.6% decrease in the General income due to the reduction in the Job Support Scheme funding received in 2021 compared to previous year. • There was an increase in event income of 28.5% due to the increase in participation at the 2022 National Championships as well as the introduction of the three new competitions: Summer Cup, Classic Competition and Lunar Cup. • NTC income also increased in FY21/22 compared to previous financial year. The increase was due to the Boards decision to give a 10% discount to the training fees for the NTC athletes in April – July 2020 due to the Covid restrictions and the inability for the athletes to train during this period. • SG received donations totalling $70,528, includes the $35,000 OTSF in 2021.

Expenses • The overall increase in expenditure of 15.6% for the financial year was due to the increased activity around event delivery and the extra three competitions which were not conducted in 2020. • The High-performance overseas training championships and competitions expenditure of $46,000 was largely due to the weekly Covid testing that the National Team had to undergo to continue with their training which was fully covered by the increase in SportSG funding. • 27% of the increased expenditure for National Training Centre partially corresponded to the increase in the National Training Centre income. The rest of the increase in expenditure related to venue hire and equipment purchases/repairs which was fully covered by the increase in SportSG funding in the financial year. • The 23% increase compared to the previous financial year in operating expenses was attributed to increase of office rental, depreciation, bank charges and travel expenses with the opening of the boarders allowing SG representatives to attend the 2021 FIG Congress held in Turkey.

Debtors • There was a decrease in the debtors in FY21/22 of 16.5% with the debtors balance at $51,747 at the end of the financial year.

Reserves • The reserves for the organisation at the end of the FY, increased by $54,421 to have a closing balance at the end of March 2022 of $488,279. • The $70,000 raised by donations goes to the High-Performance restricted reserves leaving $97,490 in the structure restricted reserves and $320,790 in the accumulated funds. • The Board aims to provide stability to fund the structural costs of SG with the long-term aim to build sufficient reserves to at least cover one year of payroll costs. • SG will continue to work towards increasing the reserves and improving the association's Sustainability Index (Total Revenue - SportSG Grant / Annual operating Expenditure) and the Reserve Ratio (Unrestricted Reserves/Annual Operating Expenditure). Currently the sustainability index is at 0.29 a decrease from 0.30 and the Reserve Ratio is at 11.7% compared to 13.75% at the year end of the previous year.

The Financial Budget for FY22/23 • In the preparation of the FY22/23 with a budget deficit of $24,474, attention was given to ensuring there was minimal impact on the reserves by continuing to manage the overall operating expenses. • The budget was approved with the view to properly resource the organisation to ensure a business continuity and success plan can be implemented for key management roles in the organisation. • The Board intends to focus on the following in the upcoming year: o Increase the net revenue attributed to National events such as 2022 Singapore Open and 2023 National Championships. o To look at ways to incentivise and grow membership by increasing SG’s value proposition to the community. With the change in the membership structure in 2022 the belief is there will be an increase in overall membership to 1,920 which will see an increase in membership income of approximately $22,000. This increase in the income also relates to the slight increase in membership fees for 2022 after no increase in 2021. o To continue to deliver a strong education programme to ensure sustainability of the sport in Singapore, recognising that coaches are the key drivers in increasing participation across the

nation. This area of the organisation and in particular the fundamental coaches’ courses, will continue to assist in the development of additional revenue streams. o To actively engage with potential sponsors to increase the income and ensure continued viability of the organisation. o Meeting and surpassing the fundraising/donation target of $100,000 in FY22/23. o Every effort will take place to ensure a break even or surplus for the FY22/23 with the Board actively looking to attract patrons to financially support the organisation on a long term to increase the sustainability of SG. o The planned fundraising and donation activities and budget for FY22/23 is below

List of fund-raising activities Expected income Annual Awards Dinner (NO OTSF) Donor Patrons (With OTSF) $110,000 $20,000 Expected expenditure $30,000

The Board, supported by the Sub-committees, will relentlessly monitor the implementation of the updated financial policies and standard operating procedures that had been updated in 2021 from the internal review conducted by KLP.

FY2021/2022

At a Glance

73 new members coaches 10coaching courses conducted

26coach and parent workshops 124coaching course participants

251workshop participants

EVENTS

6major events 2,090 total participants

164volunteers 1,186live stream tickets sold