Notes from the Treasurer
Supporting local good causes
A number of worthy causes in the village have been asking if The Shop is able to supply hampers and the like for use in their Christmas raffles. Next year we might be in a position to say yes to some or all of these requests, but for the moment we will have to say no to all of them, and I'd like to explain why.
The Shop is set up specifically for the benefit of the North Marston community – it is embedded in our rules. The first and primary way in which we will benefit the community is to run The Shop successfully. Beyond that, if the business generates a surplus beyond the needs of the business (i.e. running The Shop) then that surplus can be distributed to other projects within the village.
So in principle we can support such requests in the future, but we can't do so at the moment for several reasons.
First, we don't know yet if we are making any profits at all. Yes, the Shop is going well so far with good turnover. But turnover does not equate to profits. As Treasurer I suspect that we probably are making a small operating surplus, but I would be very surprised if we are making a surplus overall as we are still dealing with start-up costs. And there are many costs that are difficult to estimate until trading has been under way for a decent period.
The first time we will have a clearer picture is when the accounts for 2011 are completed, checked and audited sometime in the spring. These accounts will go to the AGM for approval by the Members of the Shop Association, and at that point we may be able to say that we have a surplus.
And that leads on to the second issue. We may have a surplus to enjoy at the AGM, but is it beyond the needs of the business? At this stage we can't be sure of what further funds we may need to invest in the Shop itself to keep it in good order. And, as part of the process of raising grants to set up The Shop, we had to take out a medium term loan which has to be paid off.
The third issue is accountability and transparency. If and when we get to the point where we make a surplus beyond the needs of the business, then it should be the Members – probably via the AGM – who should have a say in how much, when and to whom we should be making donations. (If you are not already a Member, by the way, membership is open to all who support the objectives of the Shop Association - the details are in The Shop).
So that is why for now we must be prudent and say no to things that our heart might like to say yes to.
Alan Williams, Treasurer, Shop Association