Questions and answers needed at Winton

Andrews, speaking in December, said there had been a misunderstanding among club members about what they could and could not do.

King also claimed the accounts for the club’s barbecue project had not been done for a number of years.

Keelty found it was ‘‘most unusual’’ that accounts from the club’s barbecue project, which was one of the club’s major fundraising initiatives, had not been included in the annual accounts for some years. The club had acknowledged it was remiss in not collating and presenting accounts but the club’s vice president John McHugh had assured Keelty the figures were all there and it would be rectified, Keelty found.

Andrews said the club was now doing its barbecue accounts.

King also asked why capital of $130,000 from the club’s gaming investment account had until recently been kept from the club.

Keelty found there appeared to be some reluctance by club trustees to inform members of the size of the investment fund, with its financial information referring only to the interest earned and disbursements.

The trustees should be upfront about the large financial nest egg and members should be fully informed of the total investments and how they were performing, Keelty found.

As it was club money, it was essential It was recorded in the financial statements and presented to the appropriate agencies at the end of the year, Keelty said.

Keelty’s report said the club told him interest from the $130,000 investment was available for talented youth in the community and other things considered worthy, and it listed numerous community organisations that had been given money from the account.

McHugh, speaking to The Southland Times on November 19, disputed this finding, saying the $130,000 was announced every year.

Andrews said the club had now recorded the $130,000 in its financial statements.

Among other issues raised by King during the conciliation meeting, Keelty found the club had mistakenly assumed money raised from the barbecue and firewood projects could be used to supplement the administration account.

Keelty found income from the club’s fundraising projects could not be used to defray the club’s administrative costs.

Andrews said money from the barbecue and firewood accounts was no longer going into the club’s administration account.

Keelty also found the club’s way of sorting out club positions, which involved inviting senior Lions to a meeting to sort out positions for the coming year, was ‘‘hardly democratic’’.

He strongly recommended the club adhered to the appropriate manual regarding the election of club members.

Andrews said the club was going through that process now.

The club also acknowledged the processes it used to give two club members life membership was not handled well.

The two recipients thoroughly deserved recognition but the process left a lot to be desired, Keelty found.

‘‘The club has learned from this experience.’’

Keelty’s report says the district treasurer Les Dawson looked over the club’s annual accounts for the past six years and did not believe an audit would solve any complaints.

‘‘It appears that some expenditure may have been shown in incorrect amounts but I can see no deliberate attempt to do this . . . this area needs tidied up.’’

‘‘As conciliator, it is my opinion an audit of the accounts will not change anything as it is water under the bridge and historical. We need to look forward, to see what needs change to bring the club into line with accepted practices within the Lions constitution,’’ Keelty found.

Andrews, speaking by email in December, said Lions clubs were expected to be transparent with how their funds were used.

"It is not usual for some clubs to combine publicly donated monies and income derived from its members to the same account, but are encouraged to clearly identify the source of income.

"However, it’s important to note that Lions clubs are autonomous, meaning clubs are solely responsible for managing the day to day operations, club finances, service and other fundraising projects and other related issues related to membership and club life. It is respective clubs’ responsibility to determine its accounting practices."

Andrews said Lions members gave their time freely, with the Winton club having raised more than $700,000 for the community in its 50 plus years in existence.

"Even over the period of this dispute they have always remembered what their main goals were, to serve their community."

The club had deviated from its constitution but was now on the right path, he said.

McHugh, who has been in the Winton Lions Club for 20 years, said the club had recognised there were one or two areas that needed tidied up and they had been.

"I am doing my best ... to keep a little club afloat and he [King] is doing his best to wreck it."

"There’s not one thing anyone has gained by being a member of the Lions Club, it’s a voluntary organisation."

The issue with King had been ongoing and the club had complied with the recommendations and answered the questions put to it in the conciliation hearing, McHugh said.

King said he was not trying to wreck the club.

He wanted the club to get back to running to the correct procedures and he wanted answers to what they had done, he said.

Current Winton Lions Club president Mary Cooper declined to comment, saying questions should be put to Andrews or McHugh.