According to The Sil, an audit of the MSU discovered the largest deficit it has had in years (actually, apparently, ever). This after last year's VP finance was talking about balancing the budget or maybe even having a small surplus.

How do you, as a student being represented by the MSU, feel about this?

http://thesil.ca/blog/news/audit-reveals-record-loss/

Frankly, I'm not suprised.

I recommend that anyone and everyone who is concerned attend the SRA meeting this coming Sunday. It's at 6:30 in GH 111 (council chambers).

EDIT: The MSU has also released a statement on this, which can be found here

I agree with Taunton. Come to the SRA meeting on Sunday or visit the SRA office (MUSC 204) between 9:30-4:30 Monday to Friday

Who wrote that statement?

Originally Posted by DannyV

Who wrote that statement?

I tried to look up who exactly authored it by logging into the website, but I don't have access to that portion of the site, and so I can't say for sure who wrote it.

From the writing, I would say that the VP Finance wrote it, although I'm not sure why the article doesn't actually say so. In any case, you can contact the VP Finance for more information on the subject, or you can come to the SRA meeting on Sunday to hear him speak and answer questions on the audit.

Yeah I just found it weird that it had so many spelling mistakes and since it referred to the VP Finance in third person I figured it was someone else.

Originally Posted by DannyV

According to The Sil, an audit of the MSU discovered the largest deficit it has had in years (actually, apparently, ever). This after last year's VP finance was talking about balancing the budget or maybe even having a small surplus.

How do you, as a student being represented by the MSU, feel about this?

http://thesil.ca/blog/news/audit-reveals-record-loss/

They didn't HAVE to spend another 400k making 128Q... it's the same.

But I think we've already talked about that.

Originally Posted by micadjems

They didn't HAVE to spend another 400k making 128Q... it's the same.

But I think we've already talked about that.

Actually, it's not the same. 1280 is performing much better than Quarter's did. The renovations and changes have made large improvements in how the operation runs.

Originally Posted by Taunton

Actually, it's not the same. 1280 is performing much better than Quarter's did. The renovations and changes have made large improvements in how the operation runs.

And how long will it take to make that money back?

I looked at the audit.

I lol'd so hard.

Please stop wasting our money MSU. Negatives in every service. Or just barely making a profit. Quite pathetic.

Originally Posted by DannyV

Yeah I just found it weird that it had so many spelling mistakes and since it referred to the VP Finance in third person I figured it was someone else.

What spelling mistakes? I found only one, and it's more of a typo (naeve).

Originally Posted by FireDragoonX

I looked at the audit.

I lol'd so hard.

Please stop wasting our money MSU. Negatives in every service. Or just barely making a profit. Quite pathetic.

Not all services are intended to make money... the problem is that one of the main services intended to make money hasn't (quarters). 1280 is doing that job so far.

Originally Posted by Taunton

Not all services are intended to make money... the problem is that one of the main services intended to make money hasn't (quarters). 1280 is doing that job so far.

Agreed. Compass made considerable coin (almost $62 000) with a renovation, a new ticketing system, and brand new cash equipment as part of their expenses; this are of course counted in addition to the regular expenses of running the business. Their goal is to be revenue neutral.

Let me explain the capital process of the MSU really quick.

The MSU defines capital as anything costing over $500 that is used for more than 3 years. This means anything from furniture, to computers, to new walls is considered capital.

Capital is purchased using the MSU's capital fund, which is a reserve of money set aside for such purposes. The cost of these is then added into the financial statements of the MSU by being split up over a defined time-period.

The renovations of Quarters were leasehold improvements and the cost of those are split up equally over a 10 year time period.

This means that the $470,000 improvement costs the students $47,000 a year, and not a lump sum of money. Next year's audit won't show a giant hole in terms of purchases made by the SRA.

--

Now, while Quarters did pretty badly, it did do better than the year before that on the exact same business model. This is a bright spot in an otherwise dark time, because it means that there were better sales. Now, with a new business model, bigger restaurant and smarter staffing, the place will do a lot better. VP Finance Caterine is releasing 1280's financial statements on Sunday's meeting.

Now,

If you look at the balance sheet, Quarters made $30,000 more in revenues in 08/09 than 07/08. The costs of products during this period only increased by $2000. So in total, the profits on the goods of the organization had increased by $28,000.

This is a good thing.

The problem lies in the wages paid out. The MSU paid $431,000 in wages, which is ridiculous compared to a the $257,563 in revenue. This is why there is such a big loss. If wages were equal to revenue, Quarters would only have lost $54,000 and the problems would just have to do with profit margins, and Quarters would be a business worth investment.

So, the thing the MSU has to address this year is increasing the balance of sales and wages. Only then will we see proper returns. With a restaurant of double the size (155 up from 80), higher food prices (on average the food prices went up 10-15%), and the same size staff, there should be a much better balance of revenue to variable costs.

--

When it comes down to the nitty gritty, the audit shows financial strength at this point in, but not a sustainable one in the long-term. If we are going to hammer the MSU's decision makers on stuff, it needs to be about financial controls and policy.

The MSU's Corporate Charter (which is the most powerful set of documents in the MSU) is threadbare and largely ignored. The SRA is more concerned with its internal bylaws than it's internal financial policy, and that's the brunt of the matter.

If politicians want to promise change for the future, they need to address the bare bones of the matter and not the frivolous issues that keep being addressed.