Dissent continues to simmer within Cairns community radio station 4CCR with the Friends of 4CCR group raising concerns about the station’s accounts, which were presented at the Annual General Meeting last week. An unexplained figure of $98,000 worth of expenditure has attracted the most attention, given that the station last financial year made a profit of $64,810, but this financial year made a loss of $95,405.
The Friends group has highlighted a number of questions it wants clarified in relation to the accounts, having referred the figures to an external accountant. The group has told the local newspaper (see our clippings page) its attempts to co-operate with the station to resolve internal brawling, regulatory breaches and the exclusion of would-be members have failed.
Friends president Ross Parisi saying a “major deterioration” in the station’s finances is “distressing” and it is time for the management committee to step aside.
4CCR, which is known on air as Cairns FM 89.1, held its annual general meeting last week, where various complaints were raised and Friends group members who tried to attend were refused admittance. About 40 people attended the AGM and it is estimated that about 10 people were refused admittance. The station is currently being investigated by ACMA for several complaints made against it.
The auditor commissioned by the Friends group to go over the accounts highlighted the following points:
Revenue Items:
1) Increase of $17,782 in Campaign income.
2) Decrease of $12,859 in Rent Received
3) Increase of $9692 in Electricity Received (NIL in 2009) (refer 11) below)
4) Increase of $4,602 in Sponsorship (NIL in 2009)
Expense Items:
5) Increase of $17,365 in Administration Fees
6) Increase of $2,996 in Depreciation
7) Decrease of $4,217 in Employee Benefits
8) Decrease of $4,103 in Office Expenses
9) Increase of $4,898 in Rent Expenses
10) Increase of $21,866 in Repairs & Maintenance
11) Increase of $7,849 in Utilities Expense (but refer 3) above)
12) Increase of $98,452 in Other Expenses from Ordinary Activities
After examining these items, the auditor said:
“By far the most significant movement is (12) above, but there is no information in the annual accounts regarding the nature of this expense. Alone it equates to the deficit for 2010 year, and if the expense is ongoing it would impact adversely on the viability of the association.
“Overall (excluding the increase of $98,452 in other Expenses from Ordinary Activities), net operating income has declined from $64,810 in 2009 year to $3,047 in 2010 year. Access to detailed management accounts would provide more insight into business income and expenses.
“In the Balance Sheet, the Cash at Bank – Grant Account has increased by $139,230 (Grants Received $82,874 – ?) Is there any contingent liability regarding the spending of grants?”
Other items questioned by the auditor include increases in operating income, rental income expenses, utilities expenses, and high figures in trade receivables and creditors.
The audit shows “a disturbing and increasingly perilous financial position” according to the Friends’ group, which says “if no decisive intervention takes place, it is highly probable that CCBI may become insolvent during the course of 2010/11 financial year.”
Station President Rod Coutts and the station’s management committee have been requested to table the full accounts and associated contracts for “inspection by interested parties.”
The latest action is part of an ongoing dispute between the station management and the Friends group. See two earlier stories HERE and HERE for our earlier coverage of the ongoing problems at the station.
The station’s website is at the link below.