The organisation reported a loss of $39,595 for the financial period ending June 30. But Sport Otago chief executive John Brimble put the deficit largely down to a change in the reporting requirements associated with new accounting standards.
"In real terms we were able to bank $24,000. But in terms of how we account for our income and expenditure, under the new accounting standards, it represents a deficit," Brimble said.
Revenue is down from $2,086,213 to $2,058,189 and expenditure has risen from $2,013,687 to $2,097,784 which suggests the economic situation is tightening.
But while Brimble accepted there were challenges, Sport Otago is financially healthy.
"We’re secure with a four-year contract with Sport New Zealand. We also have a strong funding relationship with our five territorial authorities and also a good relationship with the two community trusts which service the area.
"And we have a good relationship with the gaming sector who we tend to use to supplement and actually put the icing on the cake."
Revenue from gaming trusts has dropped 33% across New Zealand during the past three years and that has had an impact on Sport Otago.
"The reaction to that ... is it has prompted us to look at other ways of diversifying our income.
"It is fair to say we have taken a more commercial approach to our events area so that we can generate funds and put that money back into supporting sport and recreation activities."
Brimble said the fall in Sport Otago’s revenue mostly reflected a drop in funding from Sport New Zealand.
"Despite the fact we have four years of funding through their investment schedule there was a $40,000 reduction in the income.
"We’ve covered some of that by expanding our income from other sources."
Brimble said increases in staff salaries were a big factor in the climbing expenses but Sport Otago has more than $600,000 in retained earnings and a closing equity of $1,143,269.
