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The latest financial report from the JAA shows it has continued to lose money.
The latest financial report from the JAA shows it has continued to lose money.

Jewellers Association loses $48,000

The Jewellers Association of Australia (JAA) recorded a $48,244 loss of member’s money last year, according to its latest financial statements.

The 30 June 2019 financial report was prepared by accounting firm Saward Dawson and lodged with the Australian Charities and Not-for-profits Commission (ACNC).

The JAA’s total revenue fell by $132,193, or 34 per cent, from $390,546 in 2018 to $258,353 last year. However the JAA was only able to reduce its expenses by six per cent, or $19,312, from $325,909 in 2018 to $306,597, thereby recording the $48,244 loss.

“This sharp decline in membership income means that 65 cents in every dollar contributed by members was paid directly to JAA staff.”

On a positive note, the report indicates the JAA has stemmed its recent membership freefall, with the association listing an increase of seven members in 2019 to 521, up from 514 in 2018. Three years ago the JAA had close to 750 members.

Interestingly, while membership increased last year, total member income fell by 18 per cent.

There was a $44,000 reduction, from $248,292 to $204,377 and this decline came after a 13 per cent fall the year before. Membership income has now plummeted by 36 per cent since 2016. The anomaly is explained by a change in the average membership fee; it was $483 in 2018, but decreased by $90 per member, to $392, last year.

It is likely that reduction in the average fee is due to the higher fee-paying supplier members quitting the association.

» Download the JAA Financial Report FY19

This sharp decline in membership income means that 65 cents in every dollar contributed by members was paid directly to JAA staff.

Worryingly, the 2019 membership income ($204,377) did not cover staff and office expenses ($211,642) – let alone all other operating costs.

Another large problem faced by the JAA is the huge decline in commission income, which last year fell to an all-time low.

This important revenue stream has traditionally come in the form of sponsorships and commissions received from ‘partners’ that support the JAA, such as Marsh Insurance and other companies offering business services. These companies pay the JAA a commission on sales and/or offer sponsorship dollars to support the association.

However, this important income stream more than halved last year, dropping from $59,877 in 2018 to $27,295, and the decline has been an ongoing trend for the JAA, which has lost vital financial support from the wider industry.

Only three years ago, commission income amounted to more than $175,000; the decline represents a whopping 85 per cent fall since 2016.

The latest financial statements show that equity has also fallen, from $37,899 in 2018 to ($10,345) last year, meaning the JAA has recorded only one surplus year since 2014.

It has lost a staggering $367,568 in member’s money in that time.

The current board consists of:


Jo Tory
president

Karen Lindley
supplier director

Cameron Marks
director

Ronnie Bauer
retail director

Emily Crews
director

 

The JAA board operated with only five directors for most of 2019.

Crews – an industry ‘outsider’ – was appointed in September, to fill a position that had been vacant since January 2019. Soon after her appointment, buying group director George Proszkowiec resigned.

The JAA has been unable to fill the sixth board position.

 

at a glance: JAA's statistics (2014 - 2019)

The JAA has recorded losses for five of the past six years totalling $367,568.
The JAA has recorded losses for five of the past six years totalling $367,568.

Total revenue and membership fees have steadily declined since 2014.
Total revenue and membership fees have steadily declined since 2014.


More reading:
More problems with JAA financial reports
Jewellers association financial statements raise questions
New JAA Financial Statement raise more questions
Unanswered questions at JAA AGM











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