Interested parties are individuals or groups who have an interest in the activities and financial well-being of an organisation. For a club, the members are a primary interested party. Understanding their needs and expectations is crucial for the club's success.
Identifying Club Members as Interested Parties
Club members have several reasons to be interested in the club's accounts:
Financial Health: Members want to know if the club is financially stable and can continue to offer activities and benefits.
Use of Funds: They are interested in how the club's money is being spent – whether on equipment, events, or administration.
Value for Money: Members expect the club to provide good value for the membership fees they pay.
Transparency and Accountability: They have a right to see how the club is run and that the funds are being managed responsibly.
Future Plans: Members want to understand the club's future plans and whether the finances support those plans.
Information Needs of Club Members
Club members typically want to see the following information in the club's accounts:
Income: Details of all money coming into the club (e.g., membership fees, fundraising, grants).
Expenditure: Details of all money going out of the club (e.g., equipment purchases, venue hire, event costs).
Surplus/Deficit: The difference between income and expenditure over a period.
Assets: What the club owns (e.g., equipment, savings).
Liabilities: What the club owes (e.g., loans, outstanding bills).
How Club Accounts Meet Member Needs
Well-prepared club accounts provide members with the information they need to assess the club's performance and financial position. The accounts should be presented in a clear and understandable way.
Example of Information Presented in Club Accounts
The following table shows a simplified example of information that might be included in a club's income and expenditure statement.
Item
Amount (£)
Membership Fees
$1200
Fundraising Events
$500
Equipment Purchase
$300
Venue Hire
$200
Printing Costs
$50
Total Income
$2250
Total Expenditure
$550
Surplus
$1700
Suggested diagram: A simple pie chart showing the breakdown of income and expenditure for a club.
This example demonstrates how a club's accounts can show the sources of income, how the money is spent, and whether the club is financially viable.