A year after the Regional District of Fraser-Fort George loaned $500,000 to the Fraser Fort George Museum Society, which runs the Exploration Place, the organization has heavily cut back on staffing but is still working to get its finances back on track.
At the regional district’s Thursday, April 16 board meeting, the society will present provide a year-end report for 2024 as well as a financial update.
A report written by district staff states that the borrowing agreement required the society to have a balance of no greater than $175,000 as of Dec. 31, 2024.
As of that date it had a balance of $200,000. However, cash flow projections for the end of 2025 indicate that the balance will decrease to $118,050 as of the end of the year, lower than the $125,000 limit specified by the borrowing agreement for that date.
While the society’s 2024 budget projected a surplus of $270,906, it ended up running a deficit of $325,510. The 2025 budget projects a surplus of $19,211.
The society’s 2024 financial statement, prepared by FBB Chartered Professional Accountants, notes that the organization’s liabilities exceeded its assets by $398,768 as of Dec. 31, 2024.
“These events or conditions, along with other matters … indicate that a material uncertainty exists that may cast significant doubt on the Society’s ability to continue as a going concern.”
Despite that, the statement acknowledges that management believes that its work to pursue additional funding and reduce expenses will eventually return the society to a positive cash flow.
The Exploration Place’s 2022 expansion is listed as a continuing source of cash-flow challenges.
In a letter to the regional district’s board of directors, Exploration Place executive director Alyssa Leier said she’s been working hard to get the facility back on track after returning last July from an 18-month maternity leave.
“This was a challenging transition considering I had not seen the organization operating and open to the public since pre-COVID 2020,” Leier wrote.
“The organization was struggling financially and despite having a beautiful renovation, had not fully recovered to pre-COVID numbers. In fact, admissions, memberships and program numbers were decreasing while expenses were rising.”
She goes on to say that the initially approved budget for 2024 was unrealistic. After work to reduce expenses, Leier said revenue targets for the first quarter of 2025 were exceeded and the current projected surplus has risen to around $100,000 despite the facility’s need to repay its debts with interest.
Some of those savings come from staff reductions. As of when Leier wrote her letter on April 4, she said there were 22 staff members left, a 44 per cent decrease from the same time the previous year and representing savings of $44,000 per month.
This level, she said, represents what she considers minimal staffing to operate the Exploration Place at full capacity without impacting the work being done.
The financial situation still has room to improve as there are $425,000 in pending grants that the facility could still receive in 2025.
The Regional District of Fraser-Fort George board of directors meeting starts at 1:30 p.m. on Thursday, April 16 in the second-floor boardroom at 155 George St. in Prince George. For those who can't attend in person, the meeting will be livestreamed at rdffg.ca.
