ws 4wd final report 7 nov 2010

8/8/2019 Ws 4wd Final Report 7 Nov 2010

1/27

Reviewof

the

4WD

AdventureShow

Onbehalfof

FourWheelDriveNSW&ACT

Inc.

7NOVEMBER2010

WAYNE SMITH & Co

P.O. Box 1590

Potts Point N.S.W. 1335

Phone 02 9332 1499, Fax 02 9332 1688Email [email protected]


2/27

WayneSmith&CO ReviewofThe4WDadventureSHOW

Page1of26

CONTENTS ReviewofThe4WDadventureSHOW onbehalfofFourWheelDriveNSW&ACTInc......................................3

Background....................................................................................................................................................... 3

Instructions....................................................................................................................................................... 3

ReviewProcess................................................................................................................................................. 4

GovernanceandProbity................................................................................................................................... 5

Minutes........................................................................................................................................................ 6

Dutyto

exercise

reasonable

care

and

skill

...................................................................................................

8

Careanddiligencecivilobligations............................................................................................................ 9

Obligationtopreventinsolventtrading....................................................................................................... 9

Contractswithofficeholders..................................................................................................................... 11

Conflictofinterest...................................................................................................................................... 11

ObligationtodiscloseconflictofinteresttotheAnnualGeneralMeeting(AGM)....................................12

FinancialResults

.............................................................................................................................................

13

ReportoftheAuditorsReview ofthefinancialstatement........................................................................ 14

Continuingliabilities................................................................................................................................... 15

Separationof functionsinternalcontrol................................................................................................. 15

Whatwentwrong?......................................................................................................................................... 16

EventHistoryConceptualisation&LeadTime........................................................................................ 16

Event

History

Lead

Time

in

Relation

to

Sponsors:

....................................................................................

17

EventHistoryLeadTimeinRelationtoExhibitors:.................................................................................. 18

EventHistoryLeadTimeinRelationtoTicketSales:............................................................................... 18

EventHistory:BenchmarksandAssumptions............................................................................................ 19

EventHistory:BudgetOversight................................................................................................................ 20

EventHistory:GateReceipts&StaffingOversight..................................................................................... 24

ConsiderationsRegardingFutureEvents....................................................................................................... 24


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Page2of26

Aboutthecompilersofthisreport................................................................................................................. 26


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Page3of26

REVIEW OF THE 4WD ADVENTURE SHOW ON BEHALFOF FOUR WHEELDRIVENSW&ACTINC.

BACKGROUNDFourWheelDriveNSW&ACTInc.(theAssociation)isthepeakbodyrepresenting974WD

clubsinNSWandtheACT.

TheAssociationheldtheThe4WDAdventureSHOW betweenFriday27Augustand

Sunday29August,2010.Theshowincurredafinanciallossof$246,934andtheexecutive

CommitteehaveretainedWayneSmithandCotoconductareview.

INSTRUCTIONS WayneSmith&Cowasappointedtoprovidetotheexecutivecommitteeanauditreview

andreviewofoperational mattersandreportonthe4WDadventureshow(show)heldat

theSydneyDragway,EasternCreek,NSWbetween 27Augustuntil29August,2010.

Ourframeworkofreference:

ReviewObjectives:1. Provideanauditreviewontherevenueandexpenditurestatementofthe

Associationrelatingtotheshow.

2. Provideanopinionoftheprobityrelatingtotheengagementof contractorsand

serviceproviderstotheshow.

3. Reportontherelationshipbetweenthebudgetandfinancialresultsachieved.

4. Reportonanyothermattersrevealedduringthereviewwhichmayofferassistance

totherunningoffutureshows.

ReviewScope:Toachievetheseobjectivesthefollowingarethemaincomponentstothisreview.

Conductafinancialauditreviewoftherevenueandexpenditurerelatingtothe

show.


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Page4of26

ExaminationoftheAssociationinrelationtotheAssociationsIncorporationAct1991(ACT)andinparticulartheprovisionsrelatingtoenteringintocontractson

behalfoftheAssociation,accountingandmanagement.

Examinationoftheprobityinrelationtotheawardingofcontractsandengagement

ofserviceproviderswithinthecontextoftheAssociationsobligationsofthe

legislativeframeworkoftheAssociationsIncorporationAct1991(ACT)andbestpractice.

ExaminationofthebudgetaryprocessadoptedbytheAssociationandthe

relationshipbetweenthisprocessandtheprojectmanagementoftheshow.

Provideareportofourfindingsincludingananalysisofthebudgetedrevenue

shortfallstogetherwithrecommendationsforimprovementinfutureevents

organisedbytheAssociation.

ThescopeofthereviewdidnotincludeanauditoftheAssociationsassetsandliabilities,

accordingly,wedonotexpressanauditopiniononthem.Wearenottheappointed

auditorsoftheAssociationandourreportisaspecialpurposereportandisnotareportof

thetyperequiredbySection72oftheAssociationsIncorporationAct1991(ACT)This

report

does

not

constitute,

and

is

not,

legal

advice.

Comments

made

are

by

way

of

observation.ItisrecommendedthatCounselberetainedinrespecttosomeoftheissues

identified.

Wedisclaimanyassumptionofresponsibilityforanyrelianceonthisreviewtoanyperson

otherthanFourWheelDriveNSW&ACTInc.

REVIEW PROCESSTheprocesshasinvolvedreviewingvariousreportspreparedbytheshowmanager,

relevantlegislation,interviewswiththeExecutive,ShowManagerandselectedShow

Committeemembers,financialrecordsincludingselectedinvoicesandreceiptstatements

andotherdocumentsrelatingtotheshow.

ThescopeofthereviewdidnotincludeanauditoftheAssociationsassetsandliabilities.

Therevenueandexpenditurestatementhasbeenexaminedinrelationtotheapplicable

accountingframework.


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Page5of26

Weacknowledgetheassistanceandcooperationprovidedbytheexecutive,show

committeemembersandtheshowmanager.

Thepropriety

of

decisions

made

and

the

integrity

of

the

members

of

the

committee

and

showsubcommitteearenotdisputed.Thereisnoevidenceofanyuntowardbehaviourby

thecommitteemembers,andtheyaretobecommendedforthehonestyand

straightforwardanswerstheygavetoallquestionswhichwereaskedofthemduringthe

courseofthisreview.

GOVERNANCE ANDPROBITY TheFourWheelDriveNSW&ACTInc.hasbeenincorporated undertheAssociationsIncorporationAct(1991)oftheAustralianCapitalTerritory(theAct)anditissubjecttotheprovisionsofthatAct.

DELEGATIONBY COMMITTEETOSHOW SUB COMMITTEE

UndertheActthecommitteeofanincorporatedAssociationhasthemanagementofthe

Association(Part4s60).

ThepowertodelegatetoasubcommitteeiscontainedinPart1.3clause21ofthe

Associations

Constitution.

All

acts

or

things

done

or

suffered

by

the

subcommittee

in

the

exerciseofthedelegationhasthesameforceandeffectasifdonebytheExecutive

Committee.

TheCommitteeestablishedasubcommitteewithdelegatedpowerstooverseethe

runningoftheshow.NotwithstandingthisdelegationtheConstitutionoftheAssociation

providesthattheCommittee,retainedtherighttoexerciseanypowerdelegated.

Theshowsubcommitteewasestablishedbytheexecutivecommitteeon4February,2010.

Themembersofthesubcommitteewere:

ChairpersonGregRedfern

EventManagerGregEbling

MarketingandPRMichelleSahayan

FinanceOfficerRonOwen

ExecutiveCommitteeRepresentativeRogerSheath

AtthemeetingoftheExecutiveheldon 8thMarch,2010thefollowingtermsofreference

andfunctionsweredelegatedtotheShowSubCommittee:


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Page6of26

Objectives:1. Topromote4WDactivitiesandinterestsinSydney&regionalNSW.

2. Provideanopportunityforaffiliatedclubstopresentthebenefitsoftheirclub

membershipandincreasemembership.

3. TofillavoidintheSydneymarkettopromote4WDinterests.

4. TobetheprimemarketingopportunityfortheAssociationasrequiredbythe

ManagementPlantofocusonevents.

5. ToprovideatemplateforthefutureshowswithinNSWasrequiredbythe

ManagementPlan.

6. Tomakeavailableanopportunityfortheclubstoparticipateintheshowand

providesourceoffundraisingbyvoluntaryservice.

7. TopresenttheAssociationwithapossibilityofgeneratinganincomesourceto

provideprogrammesbeneficialtomembers.

Duties:1. ToplanandpresentaqualityshowthatmeetstheobjectivesoftheAssociation.

2. Tosecuretheresourcestoensurethesuccessoftheshow.

3. Toprovidemonthlysummariesastothefinancialstatusoftheshowtothe

ExecutiveCommittee.

4. Tomakerecommendationstoexecutivecommitteeonlongtermcommitments

requiredtoachievesuccessoftheshow.

5. ToprovidedetailedIncomeandExpenditure,AssetandLiabilityreportsin

accordancewithrecognisedaccountingpractices.

6. ToprovideregularupdatesonprojectprogresstoAssociationMembers.

MINUTES

TheAssociationsIncorporationAct(1991)issilentinrespecttoprovisionsonkeepingminutes.TheAssociationsconstitutionatsectionatPart1.3s17(3)providesthatthe

secretaryshallberesponsibleforkeepingminutesofallcommitteeandgeneralmeetings.


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Page7of26

Althoughnotspecificallymentionedminutesofsubcommitteemeetingsarealsorequired

asasubcommitteeissubsetordelegationof themanagementcommittee. Inouropinion

theminutesofboththeexecutivecommitteeandsubcommitteeprovideinsufficient

detailof

discussions

of

considerations

leading

to

key

decisions

especially

in

relation

to

the

decisiontoproceedwiththeshow.

MINUTESOF THESHOWSUBCOMMITTEE

Theshowsub committeemetseventimesbetweenApril2010andAugust2010.In

additiontothesubcommitteemembers,attendanceatthesemeetingsoftenincluded

representativesfromserviceandinfrastructureproviders.

The

minutes

of

the

sub

committee

evidence

that

the

committee

discussed

and

actioned

a

widerangeofdirectlyrelatedactivitiesandlogisticsupportrequiredfortherunningofthe

show. Theminutescontainreferencetothetopicsunderdiscussionbutareshortand

providelittleornodetailofanydiscussiononthosetopics.

Theminutesrevealthatfinancialreportsweretabledordeliveredtosixofsubcommittee

meetings.Howevertheminutesdonotrevealwhatdiscussiontookplaceorwhatdecisions

weremadeinrelationtothosereports.Themeetingheldon5Julyisanexceptionwiththe

commentweareontrack. Noneofthefinancialreportsareattachedtotheminutes.

MINUTESOF THEEXECUTIVECOMMITTEE

Theminutesoftheexecutivecommitteearemoredetailedinrelationtothediscussionson

theshowthanarethesubcommitteeminutes.Howevertheyhavenumerousreferences

toreportsbeingdiscussedortabledandinmanyinstancesthereisnoindicationofeither

thecontentofthereportoranydetailofthediscussiononthereports.Thereportshave

notbeenattachedtotheminutes.

Wehavebeeninformedthatoneofthereasonthattheminutesarelackingdetailis

becausethey

are

made

available

to

the

members

on

the

Associations

website

and

that

it

is

notappropriatetomakepublicthecontentofitemswhichmaybeconsideredcommercial

inconfidence. Weareoftheopinionthattheminutesrequiredtobekeptasapermanent

recordoftheAssociationshouldcontainmoredetailandshouldnotbecensoredinthe

firstinstance.Thecopiesoftheminutesmadepubliclyavailablecouldberedactedto

eliminateanyliabilitywhichmaypotentiallyarisefrompublicationofcommercialin

confidenceitems.

Althoughitisoftenimportantfortheminutestobebriefandconcentrateonmaterial

issues

rather

than

being

a

verbatim

report,

the

minute

taker

should

have

sufficient


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Page8of26

understandingofthesubjectmattertoachievethebalancerequiredofgoodsecretarial

practice.

Itis

often

common

for

adherents

to

the

"less

is

more"

approach

to

include

certain

facts:

for

example,thatfinancialreportswerepresented,orthatalegalissue(suchasapotential

conflictofinterest)wasdiscussed,orthataparticularaspectofanissuewasduly

considered,withoutpresentinganydetailofthediscussion.

However,theminutesareimportantlegaldocumentsandareprimafacieevidenceoftheexecutivedischargingtheirlegalobligationsandduties.Anyfailuretorecordthedetailsof

thediscussionatthemeetingswhichleadtothedecisionbeingmadeortokeepacopyof

thereportsattachedtotheofficialminutesreducestheevidentialbenefitavailablein

defenceofdecisionstakenbytheexecutive.

Bywayofexampletheminuteswillassistcommitteemembersinshowingthattheyhave

mettheirobligationsanddutiesassetoutbelow.

LEGALOBLIGATIONSTHATEXECUTIVECOMMITTEEMEMBERSSHOULDBE

AWAREOF

Committeeofmanagementmembersshouldbeawarethatwhileofficeholdersmayhave

certainareasofresponsibilityoroversight,allcommitteeofmanagementmembershavea

generalduty

to

be

aware

of

the

affairs

of

the

Association.

For

example,

just

because

an

incorporatedAssociationhasaTreasurer,doesnotmeanthatallothercommitteeof

managementmembersdonothavetobeawareofthefinancialpositionofthe

organisation.

DUTYTOEXERCISEREASONABLECARE AND SKILL

AmemberoftheCommitteeofManagementisrequiredtoactwiththeskillandcareful

attentionthatareasonablepersoninasimilarpositionwouldbringtotherole.

InrelyingoninformationoradvicefromamanagerorcontractoroftheAssociationthe

membershouldmakesuretheyaresatisfiedthatitisreasonabletorelyontheinformation

oradvice.Ifthememberisnotsatisfiedwithinformationprovidedtheyshouldmake

furtherinvestigations.

Thisobligationtounderstandandassessinformationbythemember(ratherthanjustrely

ontheadviceofthetreasurerormanagerforexample)appliestofinancialreportsaswell

asmoregeneralinformationabouttheAssociationsactivities.


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Page9of26

CAREAND DILIGENCE CIVIL OBLIGATIONS

Anexecutivemembermustexercisetheirpowersanddischargetheirdutieswith

reasonablecare

and

diligence.

Ifanexecutivememberorotherofficermakesabusinessjudgement,theywillbedeemed

tohavemettheaboverequirementsinrespectofthejudgementifthey:

makethejudgementingoodfaithandforaproperpurpose;

donothaveamaterialpersonalinterestinthesubjectmatterofthejudgment;

informthemselvesaboutthesubjectmatterofthejudgementtotheextentthey

believeisreasonable;and

believethejudgementisinthebestinterestsoftheAssociation.

OBLIGATIONTOPREVENTINSOLVENTTRADING

GiventhepresentfinancialpositionoftheAssociationitisprudentforthemembersofthe

executivecommitteetobeawareof mattersrelatingtoinsolventtrading.

Aspartofthedutytoexercisereasonablecareandskill,itisgenerallyacceptedthatthe

ExecutiveCommitteemembershaveanobligationtopreventtheincorporatedassociation

fromtradingwhileinsolvent. ACommittee membermaybeinbreachoftheirlegalduties

iftheyletanincorporatedassociationcontinuetooperatewhileinsolvent.

Anincorporatedassociationshouldnotincuranynewdebtsifitisunabletomeetits

existingdebts.Ifthecommitteesuspect,orhavereasonablegroundstosuspect,thatthe

Associationcannotpayitsdebtswhentheyfalldue, professionaladviceshould

immediatelybeobtained.

ThetestistheAssociationwillbe'insolvent'ifitcannotpayitsdebtsasandwhentheyfall

due.

Ifanincorporatedassociationcontinuestooperatewhileinsolvent,thecommittee

memberscould

be

personally

liable,

even

though

the

organisation

is

incorporated

and

generallyhaslimitedliability.

Formanyincorporatedassociations,insolvencymayoccurduetoitbeingtechnically

withoutthecapacitytopayitsdebtsforashortperiodoftimepriortoreceivingan

injectionofcapitalintheformof aloanofgrantfromanassociatedorganisation,for

example.

InSandellvPorter[1966]115CLR666,theCourtheldthatinsolvencyisdeterminedbyconsideringallofthecircumstancesofthedebtorsfinancialposition.Itisthefinancial


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Page10of26

positioninitsentiretythatmustbeconsideredandinsolvencyshouldnotbedrawnsimply

fromevidenceofatemporarylackofliquidity.1

TheCourt

confirmed

this

position

in

LewisvDoranwhenreferringtotheenactmentofs

95AoftheCorporationsAct.TheCourtsaid:2s95Aisunequivocallyandemphaticallyclearthatinsolvencyis,firstandlast,a

questionoffacttobeascertainedfromaconsiderationofthecompanysfinancial

positiontakenasawhole.Inconsideringthecompanysfinancialpositionasa

whole,theCourtmusthaveregardtocommercialrealities.Commercialrealitieswill

berelevantinconsideringwhatresourcesareavailabletothecompanytomeetits

liabilitiesastheyfalldue,whetherresourcesotherthancasharerealisablebysale

orborrowinguponsecurity,andwhensuchrealisationsareachievable.SouthernCrossInteriorsPtyLtd(inliquidation)vDCT(2001)53NSWLR213at224.3

Itgoestoofartosaythatinsolvencyexistsmerelybecausethereisaninsufficiencyoffunds

ataparticularpointintime.Thiscircumstancemayexistmerelyduetoatemporarylackof

liquidity,whereasinsolvencyisconfirmediftheinsufficiencyrepresentsanendemic

shortageofworkingcapital.

Moneysthatcanbesecuredbyapledgewithinareasonablyshortperiodoftimewillalso

dischargeanincorporatedassociationsliabilitiesinordertoshowsolvency.4

Ifanincorporatedassociationisabletoshowthatithascapitalcomingintoitwhichcanbe

regardedasimmediatelyrealisableorobtainable5 andnotintheindeterminatefuture,

then,coupledwithaconsiderationofthenatureofitsassetsandthenatureofitsbusiness,

itislikelythataconclusionofinsolvencywillbeprevented.6

WehavebeeninformedthatrelatedAssociationshaveorareintheprocessofprovidinga

pledgetomakeuptheAssociationsfinancialshortfall.Itisourrecommendationthatinthe

absenceofimminentreceiptofthesefundsawrittenpledgeshouldbeobtained. Should

1SandellvPorter[1966]115CLR666,670perBarwickCJ.

2LewisvDoran(2004)208ALR385,408.

3HymixConcretePtyLtdvGarrity(1977)2ACLR559.

4LaneRowinPtyLtdvPerovich[2007]FMCA1429.

5HymixConcretePtyLtdvGarrity(1977)2ACLR559.

6ReesvBankofNewSouthWales(1964)111CLR210,229.


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Page11of26

eitherthefundsorthepledgenotbeobtainedwithinareasonabletimewerecommend

thatlegaladvicebesoughtinrelationtosolvencyoftheAssociation.

CONTRACTSWITH

OFFICE

HOLDERS

WenotethattheminutesoftheExecutivecommitteedated18January2010recordthat

RogerSheathwasappointedtoassistGregEbelingasanadministrativeassistant anda

jobdescriptionistobedrawnup.Theminutesimplythatthiswasanemployedposition.

Shortlyafterwardsadraftcontractwaspresentedhoweverthiswasneverexecuted.

OurinterviewswithRoger,GregEbeling andemailsfromGregRedfernwehaveperused

supportthatRogerwasengagedasanindependentcontractorastheProjectManagerof

the

show

and

was

required

to

provide

the

project

services

and

tasks

as

set

out

in

the

draft

unexecutedcontract.

CONFLICTOFINTEREST

TheappointmentofRogerwhileacontinuingmemberoftheExecutiveandtheShowsub

committeeplacedhiminaconflictofinterest.WemightaddthatGregEbelingwasalsoin

aconflictofinterestbyvirtueofthecontractheheldasShowManagerandhis

appointmenttotheshowsubcommittee.

Itisaconflictofinterestif, amemberoftheCommitteeofManagementhasaprivate

financial(pecuniary)interest,directlyorindirectly,inacontractthattheorganisationis

consideringorentersinto.ThisdoesnotmeanthattheAssociation cannothavebusiness

dealingswithcommitteemembers.

Itshouldbestressedthatpotentialorrealconflictsofinterestcanoccuratanytime,and

indeedareanormalpartofapersonsexistencewithinanorganisation.Suchconflictsare

notnecessarilyacommentaryontheindividualinvolved.Itishoweverimportantthat

individualsbe

given

the

opportunity

to

be

sensitised

to,

and

express,

potential

or

real

conflictsofinterest.

Thepresenceofaconflictofinterestdoesnotnecessarilyimplyanyimpropriety.

Section65oftheTheAssociationsIncorporationAct(1991)providesthatifamemberofthecommitteeofanincorporatedAssociationhasanydirectorindirectpecuniaryinterest

inacontractorproposedcontracttowhichtheAssociationisormaybeaparty,the

committeemembermustdisclosethenatureandextentoftheinteresttothecommittee.


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Page12of26

Itisinherentbytheminutesoftheexecutivethatthisconflictofinterestwasknowntothe

executivecommitteeatthetimeoftheengagement,henceconstructivenotice,ifnot

actualnoticewasgivenbyRogerSheath.ThesameappliestoGregEbelingwhenhewas

appointedamember

of

the

show

sub

committee

whilst

contracted

to

the

Association

as

theshowmanager.

Thememberwillbepermittedtotakepartindiscussionsaboutthecontractbutmustnot

takepartinanydecisionoftheCommitteewithrespecttothatcontract.Itisnotobviousin

theminutesoftheCommitteethatRogerSheathrecusedhimselffromthecommittee

whenhewasbeingappointed.Howeverwehavebeeninformedthatheleftthemeeting

andwasnotpresentduringthediscussionsonhisappointment.

OBLIGATIONTO

DISCLOSE

CONFLICT

OF

INTEREST

TO

THE

ANNUAL

GENERAL

MEETING(AGM)

Whereacommitteememberhasaconflictofinterestassetoutabove,thereisalsoan

obligationtodisclosethenatureandextentofthatconflictofinterestinthestatement

presentedbytheAssociationtoitsmembersatthenextAGM(s65(1)(a)). Thisprovision

haspenaltiesattachedtoitfornoncompliance.

WestresstheimportancefortheAssociationtomakethisdeclarationattheupcoming

AGM.


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Page13of26

FINANCIAL RESULTS FourWheelDriveNSW&ACTInc

4WDAdventureShow

STATEMENTOFFINANCIALPERFORMANCE

fortheperiod5February2010to11October2010

IncomeSales Exhibitors 220,527

Entrancesales 82,355

OthersalesIncome 5,089

TotalIncome 307,971

LessExpenseVenueandstagingcostsSitecosts Leaseofsite 68,069

GroundLayout 3,248

Security 10,236

Cleaning 5,966

Entertainment 5,141

HireofPlantandEquipment 36,486

ClubLabourCosts 5,000

Otherstaging costs CateringforExhibitors/Staff 4,000

Ticketing

costs

7,374

MiscellaneousCosts 104

AdministrationExpensesBankFees 630

AccountingFees 650

ShowandProjectManagementContractors 129,446

PostageandStationary 3,667

Legalfees 1,238

Insurance 8,759

Telephone 4,008

TravelCosts

12,831

MeetingCosts 168

TestTrackConstruction 23,320

TestTrackMaterials 18,433

MarketingCostsAdvertisingandPromotion 206,174

TotalExpenses 554,945

OperatingProfit/(Loss) 246,974


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Page14of26

OtherIncomeInterestIncome 39

NetProfit/(Loss) 246,934

REPORTOF THE AUDITORSREVIEWOFTH EFINANCIAL STATEMENT

Thestatementoffinancialperformancespansthefinancialyearended30June2010and

theperiod1July2010to11October2010.Thereportcoversrevenueandexpenditure

applicabletothe4WDAdventureShowheldbetween27Augustand29August,2010.

Section72oftheAssociationsIncorporationAct(1991providesthatthecommitteeisresponsibleforthepreparationofthefinancialreport.TheAustralianaccountingstandards

requirethatthefinancialreportbepreparedinaccordancewiththeapplicablefinancial

reportingframework,andforsuchinternalcontrolasitdeterminesisnecessarytoenable

thepreparationofthefinancialreportthatisfreefrommaterialmisstatement,whether

duetofraudorerror.

Ourprocedureshaveincludedverificationofreconciledbalances,examination,onatest

basis,ofevidencesupportingtheamountsandotherdisclosuresinthefinancialreport.

The

results

of

our

tests

did

not

reveal

any

irregularities

or

material

misstatement.

Ourreviewisnotafinancialauditasthiswouldbynecessityrequireanexaminationbyus

oftheassetsandliabilitiesoftheAssociation.TheAssociationhasappointedauditorsfor

thispurpose.Accordinglywedonotexpressanauditopiniononthefinancialstatement.

Theexpenditureincludesanamountof$41,753spentdevelopingthetrack.Under

Australianaccountingstandardsitwouldbepossibletoamortisethisamountoverthelife

oftheleaseonthetrack.Wehavebeeninformedthataleasehasbeennegotiatedandwe

havesighted

minutes

of

joint

meetings

held

between

Sydney

Dragway

and

representatives

oftheAssociationsexecutivewhereintentiontoleasewasdiscussed.Howeveralease

contractoverlandisrequiredtobeinwritingandintheabsenceofaleasetheexpenditure

cannotbeamortised.

Asat31October2010tradecreditorswere$42,386.Howeverasourreviewwasrestricted

totheaccountingrecordsoftheshowweareunawareofthefundsheldbytheAssociation

tocoverthis.(seeearliersectionofthisreportoninsolvency).


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Page15of26

CONTINUINGLIABILITIES

WehavebeenprovidedwithacopyofanagreementbetweentheAssociationand

WesternSydneyInternationalDragwayLTDABN38588445216.Thiscontractisalicence

agreementandprovidesfortheuseofthesite.UndertheagreementtheAssociationis

requiredtopay$76,000.00+GSTin2011and$95,000.00+GSTin2012.Werecommendthatlegaladvicebeobtainedtodetermineifthisliabilityisdependent

upontheshowbeingheldintheseyearsorotherwise.SEPARATIONOF FUNCTIONSINTERNALCONTROL

Themechanismsinregardtobudgetoversightoftheshowappeartobebadlydesigned

andinsomecasesnotfullyimplemented.

Normallyacleardistinctionismadebetweenthoseresponsibleforinputtingreceiptsinto

anaccountingsystemandprocessingpayments.Thisisrequiredforpropersegregationof

roles.

WithregardtotheapprovalofpaymentsprocessitappearsthatthecontractedProject

Manager

approvedpayments

to

third

party

suppliers

after

they

were

verified

by

the

show

manager.ThisiscontrarytoindustrypracticewherebytheClient(Inthiscasethe

Association)approvespaymentuponverificationbytheContractor(s).Thisrequiresthat

fromtheclientssidesomeoneisfamiliarwiththebudgetandinapositiontoapprove

paymentsandthatthatpersonhavenovestedinterestintheprojectbywayof

remuneration.

TheProjectManager(acontractedposition)workedwiththeShowManager(acontracted

position)andmadethepaymentsincludingprocessingtheaccountingentriesrelatingto

them.The

Project

Manager

was

able

to

make

payments

electronically

without

the

need

to

referencetoathirdparty(foramountsunder$5000).

Whilstthisisefficient,andwerecognisetheproblemsofseparationoffunctionsinsmall

organisations,itisaweaknessofinternalcontrolprocedures.

Theabovecommentsarenotmeanttocastanydoubtontheintegrityandhonestyofthe

ShowMangerortheProjectManager.


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Page16of26

WHATWENTWRONG?Theaimofthispartofourreviewistoexploretheeventhistoryanditsoutcomesfroman

eventmanagementperspectiveasdistinctfromaprobity/governanceperspective.

AssuchthisreportaimstoexplorethoseareasrelatingtotheAssociationsbusinessmodel

thatmayhavecontributedtotheeventsfinanciallossaswellassuggestionsthatmaybe

helpfulinrelationtotheAssociationsendeavourswithregardtofutureevents.

EVENTHISTORYCONCEPTUALISATION&LEADTIME

Itappearsthattheshowwasoriginallyconceivedearlyin2009howeverforvarious

reasonsafeasibility

study

was

not

prepared

until

December

2009.

This

report

was

put

to

theAssociationsExecutiveCommitteeandon18January2010approvalwasgivento

commencepreparationsforholdingtheshowsubjecttoreviewtotakepartattheendof

March2010. TheexecutivecontractedGregEbeling(whohadpreparedthefeasibility

report)inthecapacityoftheshow(event)manager. Thecontractwasexecutedon22

February2010onbehalfoftheAssociationbyRogerSheath(actingPresident)andRon

Owen(Treasurer).Thecommencementdateitemizedinthecontractwas16January2010.

Theprovisionsinthecontractfortheservicestobeprovidedareextractedbelow:

TheEvent

Manager

will

provide

the

following

services:

1. Managethe2010Sydney4WDAdventureShowtotherequirementsofthe

organisingcommittee.

2. Developplanningdocumentsforthe2010showasrequired.

3. ManageallaspectsoftheSydney4WDAdventureShow.

4. ManagetheExhibitorstothe2010Sydney4WDAdventureShow

(a)Seekoutexhibitorsandnegotiateexhibitorscontracts

(b)Completeinitialregistrationandallocationofsites,finaliseregistrations

and siteallocations,inconsultationwiththeExhibitionmanagerand

Committee,and

generally

resolve

problems

that

arise

from

time

to

time

(c)SeekoutreplacementExhibitorsfollowinganywithdrawalswherever

possible

(d)FinalisearrangementswithExhibitorsandothersiteholders(asadvised

bytheCommittee)

(e)RecorddetailsofExhibitorpreferences,includingtheirpower

requirements

(f)ProvidedetailstotheTreasurertomaintainthesiteallocationregister.


18/27


Page17of26

5. Developvenuelayoutplanandnegotiatevenuerequirementswiththe

SydneySpeedwayCommittee.

6. Recommendandmanagecontractorsasrequiredtodelivertheeventand

withinapproved

guidelines.

7. Negotiateallcontractservicesandensureallcontractsandpurchasesare

completedtotheacceptablelevel,signedoffandpaid.

8. Managethedevelopmentofshoweventsincludingtesttracksandother

programsapprovedbytheorganisingcommittee.

9. AttendmanagementCommitteemeetings,asrequired,andothermeetings

asrequiredbytheCommittee.

10. WorkwiththeMarketingManagerinpromotingtheshowandseeking

sponsorshipopportunities.

11. ProvideongoingfeedbacktotheManagementCommittee.

12. ActasmaincontactfortheSydney4WDAdventureShow.

13. Undertakeapostshowexhibitorevaluationandprovideapostshow

debriefingreporttotheCommittee&attendthepostshowdebriefing

meeting.

TheEventdateswereestablishedfortheweekendcommencingthe27th

August2010.

Theleadtimewasthereforeseven(7)months.Webelievethatthisleadtimefroman

eventsindustryperspectiveinrelationtoaninauguraleventwastooshortandeventually

contributedinparttotheeventualfinanciallossoftheevent.Theshortleadtimewould

haveputunduepressureontheidentifiedincomestreams.

EVENTHISTORY LEADTIMEINRELATIONTOSPONSORS:

InrelationtoSponsorshiptheshorttimeframe(allowingforfullconceptdevelopment,

graphicmaterial

elements,

sponsor

benefit

analysis

and

eventual

sponsorship

prospectus)

wouldnothaveallowedenoughtimetosecuremajorsponsorsasthey,inmanycases,

wouldhaveallocatedtheirpromotionalbudgetsfortheupcomingfinancialyear.This

wouldhavealsobeencompoundedbythefactthatthiswasaninauguralandtherefore

untestedevent.Theinformationfeedbackconfirmedthistobethecase.

Ourdiscussionswithcommitteemembersrevealedthattherewasashortageofmanpower

available,orallocated,toconcentrateonsecuringsponsorships.Thecontractexecuted


19/27


Page18of26

withtheShowManageronlyprovidesforhimtoworkwiththemarketingmanagerin

promotingtheshowandseekingsponsorshipopportunities.

Assponsorshipissoimportanttoincomeadedicatedmarketingpersoninthisroleshould

beconsidered

and

no

decision

to

proceed

with

any

future

show

should

be

made

until

the

sponsorhasbeencontracted.

EVENTHISTORYLEADTIMEIN RELATIONTOEXHIBITORS:

TheleadtimeinrelationtoExhibitorsincomestream,constrainsoutcomesinverymuch

thesamewayasitimpactedonsponsorsabove. Whyistimeafactor?Withregardto

exhibitorsandotherthirdpartyindustrysuppliersapushpullmechanismevolvesover

time.Thatistosaythatasmoreandmoreexhibitorssignup,theircompetitorsand

auxiliarysuppliersfeeltheneedtoparticipateandmomentumbuildsupovertime.It

appearsanecdotallythatthe124exhibitorswhodidsignupachievedapositive

commercialoutcomeandthatmessagewillcirculatethroughouttheindustry.

EVENTHISTORYLEADTIMEIN RELATIONTOTICKETSALES:

TheleadtimeInrelationtoticketsalesimpactsthroughtheavailabletimetomarketthe

eventandthewordofmouththatfollowsonasaconsequence.Wehavefoundinour

experience

that

word

of

mouth

advertising

is

by

far

the

most

powerful

marketing

tool

for

eventbasedproducts.Itappearsthatasystemforpresalesfortheeventwasnotputin

place.

WehavebeeninformedthatMikeWhitneywasengagedtoappearontheMattyJohns

showonChannel7.AfterhisappearancetheAssociationswebsitereceivedsomanyhits

thatitcausedtheservertocrash.Thefailuretohaveaticketpresalesfacilityonthesite

duringthisperiodofheightenedactivitywasalostopportunity.

Presales

are

the

driving

force

behind

word

of

mouth.

At

BBQs,

Clubs

and

Pubs

throughout

thelandthewordgoesoutHiFred Ivejustboughtanearlybirddiscountfamilypack

tickettothe4WDAdventureShowareyougoing?

Thereareanumberofprofessionalticketoutletsthatcansupplythisserviceatan

affordableprice.Whencomparedtotheamountofdollarsthatcanbespentonadvertising

presalesandwordofmoutharethemostpenetratingandcosteffectiveformof

advertisingbarnone.


20/27


Page19of26

Therearemanywaystoachievepresales,includingthroughyourownwebsite,by

arrangementwithyouraffiliatedAssociationsorbyenteringintoanagreementwithan

organisationsuchasTicketek.

EVENTHISTORY:BENCHMARKSAN DASSUMPTIONS.

Ofallthefactorsleadingtotheeventsfinanciallossthefailuretocorrectlyresearchand

benchmarktheeventsprospectstothecorrectmodelsresultedinafalsesetof

expectationsthatcompoundedthedecisionmakingprocessthatfollowed.

Ourperusalofthefeasibilityreportrevealsthattheeventwasbenchmarkedtoexisting

eventswithparticularemphasisontheRosehillandQueanbeyanshows.Thisapproachwas

flawed asthoseeventshadbeeninplaceforanumberofyearsandhaveestablished

themselvesinthemarketplace.Thebenchmarkschosenshouldhavehadanappropriate

discountappliedtothemtoreflectthatthiswasaneweventtotheSydneymarketplaceor

benchmarktheeventtothoseothereventsinauguraloutings.

Astimemovedforwardandfailurestoachieveincometargetsbecameapparent,itappears

thattheAssociationanditsprojectmanagementwerestillbeingmisledbytheoriginal

assumptionsandfailedtoreevaluatethoseassumptions.Asanexample,thebudget asat

May

2010,

entered

into

the

MYOB

accounting

program

used

by

the

Association,

provided

for$477,739 inExhibitorincome.ThefinalExhibitorincomecameinat$220,527.A

shortfallof$257,212.

Howevertheexpenseswhichwouldhavebeenknownfairlyaccuratelyatanygiventime

weresittingsomewherecloseto$683,900.(Orhigherifcostcuttinghadnottakenplace)

Thiswouldindicatethatatanygiventime,evenifgatesaletargetswereachievedthe

organizationfacedaloss.

Atsome

point

it

must

have

become

apparent

that

arevenue

shortfall

would

occur

well

beforetheeventtookplaceandyettheassumptionsstillheldsway.

Wehavebeensuppliedwithseveraldocumentswhichhavebeentitled4WDShow

Budgetwhichwesummariseinthetablebelow:


21/27


Page20of26

Date Projected

incomefrom

exhibitors

Projectedtotal

Income

Budgeted

Expenses

ProjectedProfit

17January

2010

475,000

1,160,208 756,000 404,208

21January2010#1 1,362,600

22April2010 544,501 752,021 683900 68,121

May2010 477,739 752,739 683.900 68,839

Actual 220,527 307,971 554,945 246,075

#1 EstimatesuppliedbyGregEbeling

WehaveassumedthatthebudgetpreparedlateAprilwasoneofthedocumentsreferred

to

as

being

discussed

at

the

executive

meeting

held

on

3

May

2010.

At

this

point

the

perceivedincomeasviewedthroughtheapprovedbudgetwouldhavebeen$752,021.We

arepuzzledastohowthesebudgetedprojectionswerejustifiedinthelightofthelow

exhibitorsaleswhichhadbeendiscussed22daysearlierattheexecutivemeetingheldon

31stMarch,2010.

Wehavesightedarevisedbudget/cashflowdocumentdated11August2010whichstill

projectedaprofit.Thisbudgetcontainedanoptimisticexpectationthatincomefromticket

saleswouldbe$250,000whichwastheoriginalassumptionsmadeinthefeasibilitystudy

datedDecember

2010.

Actual

ticket

sales

were

$82,355.

Indiscussionswithmembersoftheexecutiveandtheshowsubcommitteewehavebeen

informedthattheywereofthebeliefthattheChannel7Sunriseprogramweregoingto

covertheshowandprovideleaduppromotionpriortotheevent.Thepublicrelations

companyknownasStrutPR&Eventswereexpectedtofacilitatethisaspartoftheir

engagement.ThecoveragebySunrisedidnoteventuate.

EVENTHISTORY:BUDGETOVERSIGHT.

TheresponsibilityalwaysremainswiththeClientwithregardtothedecisionmaking

processinrelationtoproceedornotproceed,withaproject,shoulditappearthataloss

maybeincurred.ThisstipulationisputinplaceduetotheClientsoutcomessometimes

beingatvariancetotheContractorsoutcomes.Ifaprojectiscancelledtheclientcanavoid

aperceivedlosswhereastheContractorwillincuralossofincome.Itisanindustry

standardthatprecludesanyconflictsofinterest.


22/27


Page21of26

Attheexecutivemeetingheldon18January2010itwasagreed thatcertaintargetshadto

bemetbytheendofMarch2010toallowtheeventtoproceed.Thesetargetsincluded

mediasupportandthetakeupofexhibitorsitesaccompaniedbypaymentsofdeposits.At

thetime

it

appears

that

this

was

understood

by

the

executive,

the

contractor

Show

ManagerandtheProjectManager.Thecontractswiththeshowmanagerandtheproject

managercontainedprovisionwhichallowedforterminationatanytimebythegivingof

twoweeksnotice.

TheinitialviabilityreportfromtheShowManagerdated31December2009containedthe

statement; Itisessentialthattheshowexpensesarecoveredpriortoopeningtothe

generalpublic.Thiswillreducethefinancialrisk.Unfortunatelythesamereportalsowas

overoptimisticinprojectingrevenuebetween$1,014,220 and $1,298,440.

Wehaveattemptedtoestablishwhatreviewwasundertakenbytheexecutiveinsupport

ofthedecisiontoproceed.Unfortunatelytheminutesofboththeexecutivecommittee

andtheshowsubcommitteearelackinginthisrespect.

Extractfromminutesoftheexecutivemeetingheldon18January2010:

TheCommitteeagreedthatthefollowingtargetshavetobemetbyendofMarch,

2010toallowtheeventtoproceed.Mediasupportconfirmed.Takeupofsitesby

exhibitorsanddepositspaid.CommitmentfromClubsforsupport.

Extractfromminutesoftheexecutivemeetingheldon8thFebruary,2010.TheAssociationExecutiveCommitteearepleasedtoadvisememberclubsthata

decisionhasbeenmadetomoveforwardintheplanningoftheSYDNEY4WD

ADVENTURESHOWafterthereportpresentedtothecommitteeconfirmedthepotentialviabilityoftheproject.

Theminutesoftheexecutivemeetingdated 31stMarch,2010.Containthefollowing

references;

ReportfromGregEbeling

AlistofCompaniescontactedandresultsupto30/03/2010.350contacted,22

committed,6pending,322Noreply,7No,60Confidentofresponse.Exhibitors

currentcommitmentis13%&currentpotentialbeingnegotiatedis18%of

breakevenwithin3weeksoflaunch.


23/27


Page22of26

ProfitandLoss[BudgetAnalysis]toendofMarch2010.Theincomeisdownbut

Gregexplainedthiswasdueto2weeksdelayingettingwebsiteupandrunning.

Reviewcomment:

The

minutes

reveal

that

at

the

end

of

March

only

13%

of

the

targetsaleshadbeenmeet.Thelowsalesbeingachievedshouldhavesetalarm

bellsringing.TheendofMarchwasthedatethathadbeendecidedinJanuaryfora

reviewtooccurtodecidewhetherornottoproceedwiththeshow.

DavidRossiterthenmovedthefollowing,secondedbyBruceClose,Carried.

AttheJanuaryExecmeetingTheCommitteeagreedthatthefollowingtargetshave

tobemetbyendofMarch,2010toallowtheeventtoproceed.Mediasupport

confirmed.Takeupofsitesbyexhibitorsanddepositspaid.

Reviewcomment:Thisresolutionrevealsthattheexecutivecommitteewere

remindingthemselvesofthepreviousresolutionrequiringcertaintargetstobe

met.Thereisnodetailintheminutestoindicatehowthecommitteesatisfied

themselvesthatthetargetshadbeenachieved.Thusitisnotpossibleforus to

provideanyanalysisinrelationtotheprojections.Howeverwerefertotherevised

budgetedprojectionsdated22April(setoutabove).Therewasadisconnect

betweenthebudgetthecommitteeappearstohavebeenworkingfromandthe

salesexperiencetothedateofthismeeting.

Theminutesofthesameexecutivemeeting(dated 31stMarch,2010)containthe

following:

26siteshavebeenbookedfromcompaniesrangingfromsmallexhibitorstomajor

internationalcompanies,ARBbeingoneexampleandanother66prospectivesites

beingfollowedupbytheShowteamSupportfortheshowfromClubshasbeen

goodwithalargenumberofClubspresentattherecentGreaterSydneyRegion

informationmeeting.TheExecutivehassurveyedPresidentsandtodate15Clubs

haveresponded

indicating

their

support.

InthelightofthistheExecutivehasgiventheirformalsupportfortheshow

subcommitteetomoveforward.

Meetingsheldbytheexecutivecommitteebetween31March2010 and17June2010

haveonlyminimalreferencetotheshowwhichwereproduceinfullbelow.

ExtractfromMinutesoftheExecutivemeeting12thApril,2010


24/27


Page23of26

20104WDAdventureShow:AcashflowstatementwasnottabledandRoger

Sheathwillprepareitbeforeweeksend.

Extractfrom

Minutes

of

the

Executive

meeting

3rd

May,

2010.

20104WDAdventureShow:ArevisedcashflowstatementwastabledbyRoger

Sheath.

Thereisnoreferenceintheminutesfor12Aprilor3Mayofanydiscussionor

considerationbeinggiventotheviabilityoroftheshowandthedecisiontoproceed

appearstohavebeenlockedinatthemeetingof31March.

ItalsoappearsthatafirmgraspofthepositionwasnotunderstoodbytheExecutive

Committee.Certaininformationathandatthattimewithregardtolackofsponsorshipand

alargeshortfallinexhibitorresponseshouldhavegainedtheirattention.Werefertothe

executiveminutesof31Marchreproducedaboveandtheminutesreproducedbelow.

Theexecutiveminutesdated17June2010state:

someexhibitorshavebeenslowtopayfortheirsites.37%ofspacehasbeen

bookedandinvoicessentout.33%ofadvertisershaveconfirmedattendancebut

havenotreturnedapplicationforms.About$150,000hasbeencommitted,by

exhibitors,whichisabout40%ofexpected.

Ataminimumitappearsitisapparentthattheexecutivesrequirementtonotproceedif

revenuehadnotexceededexpenseshadnotbeenfulfilled.

Wehaveestablishedthatmanyreports,includingsomefinancialreports,presentedtothe

committeewereoralreports.Otherreportsmentionedincommitteeminuteshavenot

beenattachedtotheminutesandwehavenotbeenabletosightthem.Consequentlyitis

notapparent

to

us

what

information

was

available

to

the

executive

at

any

given

time.

ItisapparentfromourphoneinterviewswithcommitteemembersthataroundlateJuly,

earlyAugust,theyhadbecomeawarethattherewouldbeashortfallandtheybelievedthe

shortfallwouldbeapproximately$50,0007. Itwasexpressedtousthatthiswouldhave

beenacceptablegiventhatabout$42,000hadbeenspentondevelopingthetrackasset.

7Theamountandtheexactdateisuncertainaswehavereceivedconflictingreportsfromexecutive

members.


25/27


Page24of26

Abouttwoweekspriortotheshowtherealizationthatthelosswouldbegreatersetin.

Unfortunatelybythistimeitwastoolatetocancelasmostcostshadbeenfirmly

contractedand

were

set.

EVENTHISTORY:GATERECEIPTS&STAFFINGOVERSIGHT.

Itappearsthatentrypointsandticketsalesfortheeventwereunderthecontrolofthe

DragwayVenueManagementteam.Italsoappearsanecdotallythatactualattendancemay

haveexceededgatesales.Thatistosaythatanunknownnumberofattendeesmayhave

gainedfreeentrance.Thesemainlyoccurredintheareaofthethirdcarpark.

Asanindustrystandard,ticketcollectionandsalesatthegateshouldnotberelinquished

toathirdpartywithnovestedinterestsintheoutcomes.Ticketsalesshouldbemanaged

bythePromotersstaff(InthiscasetheAssociation)withseniorstaffmemberoversight.

WehavebeeninformedthatthetreasureroftheAssociationdidattendtheticketsales

boothstoobtainanoversightofthesalesprocessandcompletedareconciliationofthe

cashproceedsagainstthebodycountasprovidedbyDragwayinacomputerizedprintout.

CONSIDERATIONS REGARDING FUTURE EVENTS.Beforeanydecisionismadetoproceedtoholdingthe4WDAdventureShowin2011

carefulconsiderationneedstobegiventothefinancialpositionoftheAssociationandin

particularifithasadequateaccesstofundsintheeventthatafinanciallosswasincurred.

Itisoutsideofourtermsofappointmenttoprovideananalysisofexpensesincurred.

Howeverwehaveidentifiedapproximately$70,000ofnonrecurringcosts.Evenifthese

costsavingareachievedrevenuewouldstillhavetoincreaseby$176,000tobreakeven.

ItisourrecommendationthattheAssociationshouldnotproceedwiththe20114WD

AdventureShowunderthesamearrangementsaswereputinplaceforthe2010show.

TheAssociation,beingavoluntaryorganisation,doesnothavetherequiredskillsand

capitalisationandlackstherequireddedicatedstaffinglevelstoachieveasuccessful

outcome.Inadditiontothistheleadtimeasoutlinedabovewouldnotallowsufficienttime

todeliverasuccessfuloutcome.


26/27


Page25of26

HowevertheAssociationhasinvestedinandnowownsabrandassetthathasbuiltupa

degreeofgoodwillamongstthepublicandexhibitors.Toretainthatassetvalueitis

importantthattheshowshouldcontinuein2011otherwisetheassetvaluewilldisappear.

OnebusinessmodelthattheAssociationmayconsiderwouldbetoapproacha

professionalEventsOrganisationwithaviewtowardsnegotiatingadealthatwouldgive

theAssociationafreecarriedinterestinrelationtofutureevents.Overtime,iftheevent

provedtobefinanciallysuccessfultheAssociationcouldrecoupitslosses/investment.In

thissituationtherewouldbenoriskofanyfurtherfinancialloss.

OneofthepartiesthatmaybeapproachableistheeventorganizersoftheSouth

Australian4WD&AdventureShowwhoappeartohaveanalliancewiththePerthevent

organizers.

Wesetoutbelowanumberofsynergiesandadvantagesthatshouldappealtothemwhich

couldbeusedtoyouradvantageinanynegotiation.

1. Theyhaveacompatiblebrandnamethattheyhaveestablishedovertime.By

obtainingrightstotheAssociationsshowbrandtheywouldgaincontinuitywith

regardtotheirmarketingstrategies.

2. ItwouldgivetheirorganisationimmediateexposuretotheNSWmarketthroughan

existingevent.Theirpromotionalmaterialseemstoindicatethattheyarelooking

toachieveanationalcalendar.

3. Theyhavesponsorshipandexhibitorcontactsinplacethattheycouldswinginto

NSW.ThiswouldbeinadditiontotheexhibitorgoodwillthattheAssociationcould

providefromthe2010show.Thiswouldhelpnullifytheshortleadtimesas

discussedinthesectionsabove.Thecombinationoftheseelementswouldoffer

theirorganisationanincomestreamthatcouldcoverbasecostsandreducetheir

financialriskprofile.

4. Theirorganisationwouldgainthesupportofyourmembershipwiththeadded

possibilityof

volunteers

at

the

event.

In

addition

the

Association

can

offer

them

accesstotheAssociationstesttrackeitherasapartofthepackageorasaseparate

financialarrangement.

WithregardtothismodelitneedstobepointedoutthattheAssociationsassetvalue

decreaseswitheveryweekthatgoesby.Yourindustrycompetitorsaremorethanlikely

waitingforanannouncementthatyouwillnotproceedwiththe2011showandwillmove

toestablishtheirownshowin2011or2012.


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Documents