WTF CSA?

[Jerry Lewis]

Just being sarcastic or is this confirmed?

With expenses ........very close to 100k a month......

[Patchelicious]

 

3.       Welcome:

Ø  WN welcomed everyone and outlined that the reason for this Urgent Emergency meeting was to discuss the current serious issues around the Hollard and Road Cover Insurance policies. He had been notified via a third party that the Hollard cover had lapsed. This was a very serious issue and totally unacceptable, bringing the Federation into disrepute and putting us at risk.  Collecting contributions and not paying these over to the service provider was unethical and fraudulent and urgent and immediate steps are required to remedy this. Additionally the list of creditors was increasing and a clear picture of the exact state of affairs was required to enable the FRC to carry out its objectives and rectify the problems.

 

snip

 

By their own admission they committed fraud.

 

Thats criminal, who is being charged with this crime?

 

You don't steal money then IF you get caught simply "rectify" it.

Edited June 7, 2017 by Patchelicious

[Gen]

Is this enough proof?????

 

Minutes for Urgent Emergency Financial Review Committee Meeting 8 May 2017, 12h00; Telecon

 

 

1. Attendance: William Newman (WN), Yster Xatasi (YX), Greg Stedman (GSt), Mike Lombard (ML), Derksen Olivier (DO),Mike Bradley (MBr), Gregory van Heerden (GvH).

2. Apologies:

025]Ø None.

3. Welcome:

025]Ø WN welcomed everyone and outlined that the reason for this Urgent Emergency meeting was to discuss the current serious issues around the Hollard and Road Cover Insurance policies. He had been notified via a third party that the Hollard cover had lapsed. This was a very serious issue and totally unacceptable, bringing the Federation into disrepute and putting us at risk. Collecting contributions and not paying these over to the service provider was unethical and fraudulent and urgent and immediate steps are required to remedy this. Additionally the list of creditors was increasing and a clear picture of the exact state of affairs was required to enable the FRC to carry out its objectives and rectify the problems.

4. Hollard and Road Cover Insurance Policies:

025]Ø WN requested a brief summary of the three policies and input into how we arrived at this point where the Policies have been suspended pending payment of the outstanding premiums.

025]Ø MBr responded by providing an explanation of each of the policies and outlined some of the issues that had led to this point (membership down by R800 000, levy and day licence collections non-existent, SARS VAT issues).

025]Ø MBr added that going forward we did not have any major expenses coming up and with an average membership income of R20 000 per day flowing into the organisation coupled with income from Load and PPA we would be able to meet our debt obligations.

025]Ø WN requested clarity on which policies had lapsed.

025]Ø MBr explained that the membership medical cover for the period Dec-Jan 2017 was active but from Feb to April was suspended pending payment of premiums. For the Day Licence medical cover this was suspended as no numbers had been submitted to Hollard. Road Cover membership would still be covered pending a payment plan being put in place.

025]Ø WN requested input from the committee members;

025]Ø ML stressed the need for the organisation to follow up with the Provinces around the payment of levies and day licences, this was vital.

025]Ø DO raised the point that many of the Provinces did not have the manpower to attend all the sanctioned races to sell day licences and that Event Organisers were unwilling to comply with the request to do this on behalf of the Province or do not provide accurate records.

025]Ø MBr suggested that sanctioning be withheld from all events that do not comply with the sale of day licences or payment of levies.

025]Ø YX added that we needed to be firm with the Provinces ensuring their collection of levies and day licences. We also needed to get Provinces to promote membership.

025]Ø GSt raised the following points:

925]1. Day licence books; have Provinces been notified that day licences were now R45 and has it been communicated that they need to either send back the old books or do a recon on the numbers of unsold licences and for those funds to be paid over to CSA.

 

5]Ø GvH indicated that the old books in the Office have been updated by sticking a R45 sticker over the old fee, and there has been communication to the Provinces with regards to the increase to R45, but no recon of old books – unsold licences – had been requested. Further notification would be necessary.

2. New Member system; GSt felt that this system had been put into place prematurely and was negatively impacting membership. For example ROAG had previously sold memberships but this been changed and could be a reason why membership numbers were down.

Ø MBr responded that unfortunately third party membership sales had to be discontinued due to the lack of buy-in from the sellers, as well as issues with their validation of membership processes when running events. Service providers also refused to update their prices when membership increased; we also incurred development costs to link them to our system.

5]Ø Hollard Insurance; this has left board members exposed to risk and was totally unacceptable. GSt suggested that discussions around finances had not been frank and open and therefore this problem had come out of nowhere without any prior warning.

Ø WN echoed this sentiment and stressed that this had potentially huge consequences for the organisation.

 

Ø DO requested clarity on the cover for riders who crashed during the recent XCO series in the Free State.

Ø MBr replied that if membership was prior to Feb riders would be covered; if after Feb then they would not.

Ø MBr added that this situation would be rectified by making a payment to Hollard today of R20 000 as well as another payment of R20 000 tomorrow. Then during the course of the month when funds have been received from Load (R100 000) and PPA (R180 000) we would make up the balance of the payments and cover would then be active.

 

Ø With regards to Road Cover

Ø MBr indicated that he would draw up a payment plan based on the recovery of Levies and Day licences.

Ø WN reiterated that riders with day licences currently had no medical cover.

5]Ø MBr explained that in order to activate the cover we would need to send in the number of day licences sold, Hollard would then invoice, and once paid the cover would be active.

Ø WN enquired into what processes were in place to get to this point.

5]Ø GvH reported that the Office was currently busy with doing a recon on the day licence income received both through our system and received from Provinces. Currently this was only being done for income already received but should be expanded to include sales at events from which income was still to be paid over by the Provinces.

5]Ø WN requested that MBr contact Hollard to explain that the recon was being done and to get all parties onto the same page with regards to the current situation and plans to rectify the problems.

Ø WN added that it was vital that the systems and processes (must be comprehensive) around day licences be managed correctly as this was a high risk area.

 

 

925]Ø MBr added that the Hollard cover would be re-instated in the next 10 days.

925]Ø WN asked that all plans be focused on a quick fix to the solution but also include a long term approach which looked at all systems and processes within the Organisation in order to correctly rectify the issues

925]Ø MBr raised a question on whether going forward the organisation remain focused on collecting day licences or levies or rather mover towards imposing an event rights fees on Event Organisers (based on passed statistics, numbers etc.)

925]Ø WN agreed that this was something that should be looked into.

925]Ø MBr highlighted how the new membership system was designed to secure our income streams taking away our dependence on Provinces collecting and making payments across to us. He stressed the need for Event Organisers to be driven towards using our online system to run their events.

925]Ø WN suggested that the Day Licence medical cover be stopped immediately and requested input from the meeting.

925]Ø After general discussion it was decided that MBr should meet with Hollard to discuss the implications around this prior to making any decision.

925]Ø WN requested MBr to action this discussion and also move towards reinstating the medical cover for our members.

5. Current liabilities

475]Ø WN discussed the spread sheet that he had distributed prior to the meeting with regards to our main liabilities.

475]Ø GSt added that actions as per the previous resolutions must be implemented.

475]Ø Action to be taken around the following:

5.1. Flight Specials

475]Ø WN ruled that all travel is to be stopped immediately, this moratorium to stay in place until the account is under control.

475]Ø MBr reported that he was in constant communication with Nanda and that payments were being made.

5.2. Wooden Post

475]Ø MBr would be meeting with Mylene tomorrow to discuss reducing the cost as per the last meeting resolutions.

5.3. Jonathan Chislet

475]Ø The cancellation of the contract had been approved. The Office to provide the necessary notice to Jonathan.

5.4. Self-funded teams

475]Ø WN to draft communication around self-funded teams to be sent out to all members.

5.5. Provision of liabilities spread sheet

475]Ø WN requested that MBr and the Office provide a full list of all liabilities greater than R10 000 to the committee.

6. General:

475]Ø GSt requested that we communicate with all people whose claims are not being honoured.

475]Ø WN ordered the Office to follow up and provide feedback.

475]Ø DO reported that a rider at the XCO Nationals had experienced problems due to racing while ill and was currently in ICU.

475]Ø WN requested that DO keep us informed of the state of the rider.

7. Date for next meeting: 18th May 2017, at 09h00

8. Closing:

025]Ø WN thanked everyone for their input and reminded everyone that it was vital that we support each other in order to rectify the current situation. He asked that timelines be adhered to and that all allocated tasks be carried out. He closed the meeting at 13h10.

15] 09/05/2017

Mr William Newman President Cycling South Africa Date Approved

Yoh. .

 

Sent from my SM-N9005 using Tapatalk

[Pulse]

Where are their offices?

 

I sense a protest ride there, a few eggs  , and then off to a WMC R50 coffee and high 5s.

Belville, I think

[Gen]

By their own admission they committed fraud.

 

Thats criminal, who is being charged with this crime?

 

You don't steal money then IF you get caught simply "rectify" it.

If this 3rd party hadn't notified WN..Bradley would never had said a word about it..he would've quietly tried to rectify it without anyone knowing about it.

 

Sent from my SM-N9005 using Tapatalk

[scotty]

Struggle accounting 101. 

[Odinson]

CSA has successfully decolonised their accounting. They have taken the oppressive Generally Accepted Accounting Principles and thrown it in the sea. They have rid their books of the European values of accountability and oversight. Viva CSA viva!

[Danger Dassie]

Ok so part of the problem is that events are not complying, should the question not be asked "why?" instead of using the threat of non-sanction, when all too often both riders and organisers don't have the value that CSA claim to offer with the presence of a commisaire. 
Tell me when a commisaire last did or understood a physical inspection of a route for safety and marking?

[rad006]

Sorry am I missing something here? We have insurance? Is this only for people with racing licences or for every mtb/road race out there? As when I crashed badly a couple years back at the Magalies Adventure I had to cover my own bills via my medical aid.

[Wannabe]

Sorry am I missing something here? We have insurance? Is this only for people with racing licences or for every mtb/road race out there? As when I crashed badly a couple years back at the Magalies Adventure I had to cover my own bills via my medical aid.

 

 

https://community.bikehub.co.za/topic/166025-changes-to-csa-medical-insurance/?hl=hollard

[Patchelicious]

Sorry am I missing something here? We have insurance? Is this only for people with racing licences or for every mtb/road race out there? As when I crashed badly a couple years back at the Magalies Adventure I had to cover my own bills via my medical aid.

Yes, the point.

 

This isn't about insurance.

[gogo@]

So. Our club race in July is sanctioned and we have paid for event insurance through CSA. Suppose I'd better query this and check the paper work?? We had an event a month ago, same story. What would have happened if there had been a claim against us? Honestly, affordable event insurance is possibly the only reason we have come to accept being forced to have CSA around.

And they HAVE threatened us in the past.

The SASREA application for risk rating/clearance for events is used to support CSA strong-arm tactics against small event committees who are NOT paid a cent to do all the work involved - and STILL carry the risk.

[Cube120]

The biggest being the General Manager of around 100k a month .......

And the responsibilities for this position at that salary are precisely what?Because from where i am sitting it appears that sweet f...all has been done to benefit the members in any way at all.

[Phatman]

By their own admission they committed fraud.

 

Thats criminal, who is being charged with this crime?

 

You don't steal money then IF you get caught simply "rectify" it.

Um, no, you see, ah... This is a er, emergency meeting to discuss the financial challenges that we are experiencing. We, ahh, cannot discuss these items which are, eh, not on the agenda. These issues need to be discussed at err, a separate meeting for that purpose. We assure you our eh, valued member, that we are dealing with this um, internally.

Right now we must uh, focus on our athletes' safety and focus on getting this insurance reinstated, as the safety and well-being of our athletes is CSA's primary main number one priority. We assure you that we remain committed to cycl... etc.

[EmJayZA]

R1.2bar a year and can't even budget properly. Shocking. Insurance cover (at least in my mind) should be the absolute priority. 

[GrumpyOldGuy]

 

 

.....but this organisation is bankrupt.? With liabilities exceeding assets by 3 odd million and running annual losses how can they continue to operate?

 

No commercial company would be allowed to continue to trade under these financial circumstances to protect creditors, surely the same rules apply, with annual losses how can they ever repay their creditors.