2018-2019 Annual Report South Shore Opportunities

The year April 1, 2018 to March 31, 2019 ended with an Operating Account deficit of $580.34. The Board used $158,000 interest earnings from Investment to supplement the deficit this year.

$242,912 was received in operating income from ACOA.

The corporation had budgeted $277,665 revenues plus the need to use $ 203,430 interest from investment earnings for a total of 481,095.   Budgeted expenses were $481,095.  

Actual revenues achieved were $293,554.65 plus a transfer of $158,000 from investment earnings,

 totaling operating revenue $ 451,554.65.   Actual interest from earnings used was $45,430 less than budgeted.  Revenues exclusive of use of investment earnings were $15,890 more than budgeted due mainly to higher than anticipated interest on deposit and a one time employment subsidy contribution from the province.   

Actual expenses of $452,135 were $28,960 under budget due mainly to reduced staff hours, reduced advertising and reduced board travel expenses.

The corporation did 2 other extra contracts during 2018-2019:

  • Entrepreneurial Training Fund; partnered with Atlantic Association CBDC/ACOA
  • Consulting Advisory Services Program; partnered with NS association CBDC

South Shore Opportunities invested $10,584 in 6 businesses who took individual training in a business management skills. In 2018-2019, via the Entrepreneurial Training Program, people gain a great deal from individualized learning. This year, 3 of the 6 businesses used the training to learn individualized bookkeeping on a variety of software.  2 businesses gained skills in branding using social media  and a business learned how to optimize web presence using google analytics and SEO training.

South Shore Opportunities approved 3 Consulting Advisory Services contracts in the amount $7,713. The Consulting Advisory Services program helped the existing businesses prepare to commercialize an energy product, develop an improved inventory system and provided a branding and market analysis for a new product.

South Shore Opportunities had 136 new business client interviews, 43 from Queens Co and 93 from Lunenburg Co. Queens County , with a third of the new inquires increased slightly this fiscal year while Lunenburg County new inquiries remained strong and similar to previous years.  

As a result of these new inquiries, South Shore Opportunities provided assistance with business plans and other technical assistance and business counselling sessions. The majority of new clients came from existing clients.   In 2018 the Atlantic Association cbdc website was a good referral source. The banks continue to be a good source of referrals.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

South Shore Opportunities originally received $2,396,890 for community investment from various Federal Government sources (Employment Immigration, Human Resource Development Canada, Service Canada and ACOA) between startup 1992 and 1998. The organization has committed $20,981,585 to March 31, 2019.

The year end March 31, 2019 saw 28 formal requests for investment from the General Investment Fund, 5 for Queens Co. and 23 for Lunenburg Co.  Queens Co. requests for financing reduced again this year, by a third, while Lunenburg Co. requests increased by 50%.

 

The request for investment totalled $1,415,394 which is down slightly $ 45,000 ,from 2017-2018 application. Of note, 2016-2017 was third only to 1997-98 and 1998-1999 for the amount of dollars included in the organizations’ history of application requests.

During this fiscal year South Shore Opportunities committed 96% of the requests, committing $ 1,304,981 net of refinancing, 27 loans (25 of which were used), an increase of 7 loans and an increase of $267,430 loans committed compared to 2017-2018.   Of note, the 26 year average number of loans approved annually is 20.96.  2016-2017 was the most loan dollars approved, $1,679,835, in the organization’s 27 year history.  2018-2019 fits the historical average.

The current year investment was partially used to potentially created and maintained 73 FTE jobs.

 

Write-Offs and Allowance for Doubtful Accounts

 

Write-offs to the general Investment Fund during this fiscal year totalled $115,278.99 covering 2 loans for 2 businesses. Historical total write-offs with subsequent recoveries means the rate of write-offs net of recoveries, $2,672,950.98/ $20,981,585.20 to March 31, 2019 is 12.7% of commitments, since inception.

                                                                    

Following analysis of the loan portfolio and individual loans, the organization chose to make no increases to the Allowance for Doubtful Accounts, leaving the balance at year end at $547,560.40 which is a conservative 17.3% of the outstanding loan portfolio.

 

The Investment Fund completed the year with $3,162,991.60 Million Loans Receivable, covering 68 loans, after write-offs. This is up $239,443 and 6 loans from 2017-2018.    At March 31, 2019 there was $569,748 available for investment.

Referencing Community Futures of Tomorrow funding formula, indicates a 1.5% operating contract penalty if investment funds loaned to the community or ACCBIF are less than 70%. Based on disbursed figures, this organization ended the year March 31, 2019 with 78.1% utilization, up from 73.7% utilization March 31, 2018. 

 

GOVERNANCE

The Board of Directors continues to both advertise publicly and utilize networks to continually seek new members of the Board. The Board remains committed to seeking a broad range of geographic and industry business expertise to maintain the important access to capital for small business in the community of Queens and Lunenburg counties.

The organization is currently seeking potential board members from Lunenburg County and is particularly interested in attracting young entrepreneurs at the moment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

South Shore Opportunities originally received $2,396,890 for community investment from various Federal Government sources (Employment Immigration, Human Resource Development Canada, Service Canada and ACOA) between startup 1992 and 1998. The organization has committed $20,981,585 to March 31, 2019.

The year end March 31, 2019 saw 28 formal requests for investment from the General Investment Fund, 5 for Queens Co. and 23 for Lunenburg Co.  Queens Co. requests for financing reduced again this year, by a third, while Lunenburg Co. requests increased by 50%.

 

The request for investment totalled $1,415,394 which is down slightly $ 45,000 ,from 2017-2018 application. Of note, 2016-2017 was third only to 1997-98 and 1998-1999 for the amount of dollars included in the organizations’ history of application requests.

During this fiscal year South Shore Opportunities committed 96% of the requests, committing $ 1,304,981 net of refinancing, 27 loans (25 of which were used), an increase of 7 loans and an increase of $267,430 loans committed compared to 2017-2018.   Of note, the 26 year average number of loans approved annually is 20.96.  2016-2017 was the most loan dollars approved, $1,679,835, in the organization’s 27 year history.  2018-2019 fits the historical average.

The current year investment was partially used to potentially created and maintained 73 FTE jobs.

 

Write-Offs and Allowance for Doubtful Accounts

 

Write-offs to the general Investment Fund during this fiscal year totalled $115,278.99 covering 2 loans for 2 businesses. Historical total write-offs with subsequent recoveries means the rate of write-offs net of recoveries, $2,672,950.98/ $20,981,585.20 to March 31, 2019 is 12.7% of commitments, since inception.

                                                                    

Following analysis of the loan portfolio and individual loans, the organization chose to make no increases to the Allowance for Doubtful Accounts, leaving the balance at year end at $547,560.40 which is a conservative 17.3% of the outstanding loan portfolio.

 

The Investment Fund completed the year with $3,162,991.60 Million Loans Receivable, covering 68 loans, after write-offs. This is up $239,443 and 6 loans from 2017-2018.    At March 31, 2019 there was $569,748 available for investment.

Referencing Community Futures of Tomorrow funding formula, indicates a 1.5% operating contract penalty if investment funds loaned to the community or ACCBIF are less than 70%. Based on disbursed figures, this organization ended the year March 31, 2019 with 78.1% utilization, up from 73.7% utilization March 31, 2018. 

 

GOVERNANCE

The Board of Directors continues to both advertise publicly and utilize networks to continually seek new members of the Board. The Board remains committed to seeking a broad range of geographic and industry business expertise to maintain the important access to capital for small business in the community of Queens and Lunenburg counties.

The organization is currently seeking potential board members from Lunenburg County and is particularly interested in attracting young entrepreneurs at the moment.

 

 

 

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