Issue: Financial Management
While the IWUF Treasurer has done a good job managing and preparing the accounts with the information that has been provided to him; I and others have concerns with the overall financial administration of the IWUF, which we feel is unclear and lacking transparency.
We are concerned that IWUF does not appear to have a documented annual budget planning process, or a process for capturing all income and costs, or an investment strategy; all of which would provide visibility over projected income and forecast expenditure, and show how IWUF was financially planning for its future.
RELIANCE ON GRANTS AND SPONSORSHIP
It was openly announced by President Yu during the 11th IWUF Congress in Ankara on October 9, 2011, that the Chinese National Olympic Committee (NOC) would provide USD1,000,000 each year to finance the IWUF.
President Yu stated again at the 29th IWUF Executive Board meeting in Kuala Lumpur on October 30, 2013, that he had “conducted negotiations with the Chinese Olympic Committee successfully, in order for them to continue their financial support of IWUF.”
At the same meeting President Yu reported “IWUF had also reached sponsorship agreements with three companies over 2012-2013 to a total combined sponsorship value of US$600,000 per annum.”
At the IWUF EB Meeting in Chengdu in 2014, President Yu mentioned he has secured another major sponsor, which will generate sponsorship to the value of one million US dollars ($1,000,000.00) for IWUF annually, for a period of three years.
While we are all very grateful for the kind generosity of the Chinese NOC and our sponsors, there is a potential longer-term impact around IWUF's financial dependency and financial sustainability. The issue that is NOT being addressed is what happens, if or when, the Chinese NOC and/or our sponsors eventually withdraw their sponsorship?
As an IWUF Vice President, I and others have never seen the details of any of the sponsorship agreements, and have no idea what IWUF has promised in return for the sponsorship funding!
WHAT DO THE ACCOUNTS SAY?
IWUF’s Statement of Income and Expenditure for the Year-Ended December 31, 2013 states: Income from 'Sponsoring and Donations' of CHF205,457 and ‘Subsidies’ CHF85,902, which combined amounts to CHF291,359, or around USD296,263.
If the USD1,000,000 was paid in full into the IWUF bank account over the 2013 calendar/financial year, then it is not clear where this is accounted for in the Year-End December 31, 2013 accounts, and likewise in the accounts for subsequent years.
For example, the difference between the USD296,263 of income recorded in the 2013 accounts, and the USD1,000,000 pledged by the Chinese NOC. If the Chinese NOC did not provide IWUF with the full USD1,000,000 during 2013, then the question to be asked is why not, when it has been publicly pledged?
I and others believe that all sources of income and all items of expenditure should be clear and transparent and recorded in the financial accounts, and accepted only by the vote of Congress.
We are concerned that IWUF does not appear to have a documented annual budget planning process, or a process for capturing all income and costs, or an investment strategy; all of which would provide visibility over projected income and forecast expenditure, and show how IWUF was financially planning for its future.
RELIANCE ON GRANTS AND SPONSORSHIP
It was openly announced by President Yu during the 11th IWUF Congress in Ankara on October 9, 2011, that the Chinese National Olympic Committee (NOC) would provide USD1,000,000 each year to finance the IWUF.
President Yu stated again at the 29th IWUF Executive Board meeting in Kuala Lumpur on October 30, 2013, that he had “conducted negotiations with the Chinese Olympic Committee successfully, in order for them to continue their financial support of IWUF.”
At the same meeting President Yu reported “IWUF had also reached sponsorship agreements with three companies over 2012-2013 to a total combined sponsorship value of US$600,000 per annum.”
At the IWUF EB Meeting in Chengdu in 2014, President Yu mentioned he has secured another major sponsor, which will generate sponsorship to the value of one million US dollars ($1,000,000.00) for IWUF annually, for a period of three years.
While we are all very grateful for the kind generosity of the Chinese NOC and our sponsors, there is a potential longer-term impact around IWUF's financial dependency and financial sustainability. The issue that is NOT being addressed is what happens, if or when, the Chinese NOC and/or our sponsors eventually withdraw their sponsorship?
As an IWUF Vice President, I and others have never seen the details of any of the sponsorship agreements, and have no idea what IWUF has promised in return for the sponsorship funding!
WHAT DO THE ACCOUNTS SAY?
IWUF’s Statement of Income and Expenditure for the Year-Ended December 31, 2013 states: Income from 'Sponsoring and Donations' of CHF205,457 and ‘Subsidies’ CHF85,902, which combined amounts to CHF291,359, or around USD296,263.
If the USD1,000,000 was paid in full into the IWUF bank account over the 2013 calendar/financial year, then it is not clear where this is accounted for in the Year-End December 31, 2013 accounts, and likewise in the accounts for subsequent years.
For example, the difference between the USD296,263 of income recorded in the 2013 accounts, and the USD1,000,000 pledged by the Chinese NOC. If the Chinese NOC did not provide IWUF with the full USD1,000,000 during 2013, then the question to be asked is why not, when it has been publicly pledged?
I and others believe that all sources of income and all items of expenditure should be clear and transparent and recorded in the financial accounts, and accepted only by the vote of Congress.