European Games 2017 - Finances Erratum
- Published: 01 December 2018
- Written by IQA Staff
The International Quidditch Association (IQA) is writing to let you know of a misstatement in its financial statements for the IQA fiscal year ended Aug. 31, 2017. In the financial statements (page 7) the IQA reported that European Games incurred a loss of ~500 Euros. This correct amount was in fact ~4,100 Euros.
After the organization closed its accounts for last year, it paid additional expenses of ~3,600 Euros. The revenue for this tournament was held, at the IQA’s request, by the Norwegian national governing body (NGB), Norges Rumpeldunkforbund and the IQA only discovered the discrepancy recently in trying to reconcile its finances and collect the outstanding money owed from the Norwegian NGB.
The IQA wants to emphasize that the Norwegian NGB did nothing wrong, the fault is on the IQA for failing to attempt to collect in a timely manner, failing to notice the error, and failing to adequately oversee the tournament committee.
The reason for this loss was that the IQA closed its financials for the year on Aug. 31, 2017 and thus did not record any additional expenses incurred from the tournament after that date.
To be clear, there are three problems
- The IQA did not properly account for the finances of this tournament at the time.
- The IQA did not notice the poor accounting until more than a year after the tournament.
- The IQA took a larger than expected loss on European Games and did not run a financially sound tournament.
The IQA has just now learned of the error and it should have caught it sooner, but Interim Executive Director Andy Marmer noted that in the intervening time period, the organization has implemented internal controls that would make this sort of error less likely to occur in the future. The IQA is also striving to have its accounts receivable recovered more quickly.
“I understand that many non-European NGBs will be quite upset at the amount of the actual subsidy from the IQA for European Games and this is a very justified complaint.” said Marmer. “As you all know, we are planning to run Pan-American Games moving forward and will do our best to make this a successful tournament.”
In the bid selection process, the IQA is placing considerable weight on the financials presented from bidders to ensure that it runs financially successful events moving forward. The IQA has reached out to each bidder to better understand their bids and will announce the hosts on the previously released timelines.
The IQA’s assets are approximately 3,500 Euros less than we had reported. The organization will reflect this in its Annual Report. To ensure a robust review of its finances, the Annual Report is being delayed from the initially planned release.
The IQA has already taken steps to ensure that future errors do not happen.
Strengthening its financial team: Interim Executive Director Andy Marmer is reviewing the financials in regular intervals. He is financially literate, has past professional experience as a bank examiner, and has taken multiple university courses in accounting.
For IQA World Cup 2018 the IQA had a volunteer treasurer who was responsible for recording and reviewing the financials and the organization plans to continue that going forward. It has expanded its events department recently to ensure there is increased IQA oversight of events that the IQA runs. The organization believes that these safeguards should ensure better accounting going forward.
Moving its fiscal year: as the IQA incorporates at the end of this year, it will be moving its fiscal year to end December 31. One benefit of this will be decreasing the likelihood that event finances will be spread over multiple years and thus decreasing the likelihood of accounting errors.
Thank you for your continued understanding and support of the IQA.
Photo Credit: Ajantha Abey Quidditch Photography