The NEDiv Council Treasury's 2011 Fiscal Year, which will end on 12/31/11, will be the second year of the reduced assessment program, and the first year with virtually no assessments being levied on the Division's competition events.
The goal has been to reduce the accumulated cash balance in the Division, giving a break to our Regions in these hard economic times. Thus far in 2011, as of 9/30/11, for the first three quarters, the net reduction of cash has been $6,117 or 13.7%, compared to all of Fiscal Year 2010 which experienced a cash reduction of $4,677 or 9.5%. The Cash Reduction Program has achieved a reduction from the end of 2009 of $10,794 or 21.9%.
There is not a set goal for our cash level, but there are certain influences that must apply. Clearly, we must remain fiscally responsible and we need to be prepared to meet
the goals of the Division. Significant among these is support of our National Competition Programs, and retaining sufficient funds to support new ventures by our member Regions.
There is no need, at this time, to restore assessments in 2012. This question can be revisited at the Roundtable, if there are significant changes. It is likely that we will see a return to some assessments in 2013. Right now our only significant source of receipts is License Waiver Fees. If the economy recovers in the next 18 months, we may see fewer drivers needing waivers as they return to the track. This will reduce our Cash receipts at that time.
For now we are fine and are quite capable of covering routine expenses, while still maintaining an appropriate reserve.
