A SHORTFALL of $104,000 in gift cards bought for promotions is among failings highlighted in a damning report on the administration of Ramsgate RSL Memorial Club.
Lack of control over spending on credit cards, motor vehicles and travel also featured in what the Office of Liquor, Gaming & Racing (OLGR) described as ‘‘a litany of maladministration by [the club’s] former secretary and board’’.
An investigation revealed that in the space of four years, the value of club members’ assets fell by 17.7percent, or $3.7 million.
As a result, the club was fined $5000, ordered to pay $68,664 in investigation costs and the former secretary and nine former board members were disqualified from holding any office in any club for three years.
Former secretary Noel Leslie Neate left the club in 2011 and the board resigned in December 2012.
Since then, the club has been run by an administrator and new management.
The former directors included John Maloney, Paul Berto, John Weston, John Garvan, Brian Peacock, Stephen McArthur, George Weddell, Cliff Kuskey and Charlie Trikilis.
Findings and penalties were handed down in a report by the Independent Liquor & Gaming Authority following an investigation by the Office of Liquor Gaming & Racing.
The report found Mr Neate was not a fit and proper person to hold the position he did within the requirements of the act.
It noted he made no submission in reply to the complaints.
The report said Mr Neate requested a 9 per cent pay rise in October 2010 and subsequently received a 7.5 percent increase.
Following the meeting, his wage rose by 10.9 per cent.
The report said Mr Neate authorised the issue of credit cards to himself and the then financial controller Lindsay Browne, with no spending controls or reviews.
A number of staff had used Mr Neate’s credit card without him checking or verifying expenditure.
The report said the lack of internal controls resulted in Mr Browne ‘‘being able to purchase Woolworths and Caltex gift cards, supposedly for use by the club in promotions, which have not been accounted for’’.
Present secretary Phillip Bragg had advised, as of March 2012, the difference between the value of the cards purchased and the value of those distributed as prizes was about $104,000.
The report said lack of financial controls allowed the club to pay for motor vehicle expenses of management staff, with no records to indicate whether expenses were reimbursed to the club.
‘‘Other expenses were inflated, apparently to conceal these expenses,’’ it said.
‘‘Without the governing body’s knowledge, [Mr Neate] had the exclusive use of a motor vehicle which was leased in the club’s name and paid for by the club.’’
The report said Mr Neate failed from 2004 onwards to ensure fringe benefit tax returns were lodged, despite benefits to himself and Mr Browne resulting in a tax liability of $356,053.
Mr Neate did not return calls from the Leader.
MANY FAILURES
Other findings included:
The club failed to adopt an adequate budget, comprehensive business plan and ensure fully reconciled balance sheets.
The club failed to ensure adequate financial reconciliation, cash control and cash clearance procedures and appropriately located CCTV, leaving it at high risk of fraud and misappropriation.
A review identified gaming machine equipment was missing and there were no accurate records of which equipment was under rental agreements and which was owned by the club.
Members look to a brighter future
NEIGHBOURS Robyn Howe and Jean Easton were among members handed a document detailing the extent of the maladministration when they arrived at the club yesterday.
They said they were aware the club had problems, but hoped that under new leadership it could now move forward.
‘‘It’s a lovely, friendly club,’’ Mrs Easton said.
The Independent Liquor & Gaming Authority made it a condition that every member receive one of the notices.
A statement posted on the club’s website by the administrator and present management said a new board would be elected at the annual general meeting in late July.
Chief executive Phillip Bragg, who replaced Mr Neate in 2011, said the club faced ‘‘a major rebuilding task’’.
‘‘We clearly have a lot of work to do to regain the trust of the regulators and our members,’’ he said.
Mr Bragg said they had to take some ‘‘tough decisions’’, including closing the Francis Drake Bowling Club, ‘‘which had been losing unsustainable amounts of money’’.
■ Do you know more about the club’s maladministration?
