Memorial University Faculty/Staff Club
The financial statements of the Memorial University Faculty/Staff Club for the fiscal year
ended August 31, 1988 indicated a deficit of $1,368 (Exhibit 1). In April 1989, the Board
of Directors was considering what, if any, steps should be taken to avoid any future
deficit. Although the current deficit was small, the Board was concerned that future
deficits would erode the funds that had been earmarked for a new facility Also, the Board
was considering what steps, if any, should be taken in response to the results of a recent
survey (Exhibits 2 & 3).
Background
The Memorial University Faculty/Staff Club was established in July 1975 to provide
services for members of the Club. Services included providing eating and drinking
facilities, evening entertainment, and an annual Lobster Dinner The Club used University
property for its functions but was an independent entity and not an adjunct of the
University.
This case was prepared by Professor Shu Lun Wong of Memorial University of Newfoundland for the Atlantic
Entrepreneurial Institute as a basis for classroom discussion, and is not meant to illustrate either effective or ineffective
management.
Copyright 0 1993, the Atlantic Entrepreneurial Institute. Reproduction of this am is allowed without permission for
educational purposes, but all such reproductions must acknowledge the copyright. This permission does not include
publication.
Membership in the Club was open to all full-time, part-time, permanent or temporary
employees of Memorial University of Newfoundland. The fee structure was 0.002
percent of each member's gross salary. In January 1989, the University employed 937
faculty (approximately 90 percent on the St John's campus and 10 percent on the Comer
Brook campus) and 1,517 staff (approximately 94 percent on the St John's Campus and 6
percent on the Comer Brook Campus).
The Board of Directors was elected from amongst the members of the Club at the annual
general meeting each year. The management of the Club's business was vested in the
Directors who met once a month to discuss any issues.
The University
Memorial University College was established in 1925 as a memorial to those who lost
their lives in the great wars and as an institution to provide higher education to the young
people of Newfoundland and Labrador.
Memorial University of Newfoundland was established by an act of the Provincial
Legislature of Newfoundland in 1949. The main campus was located in St John's, the
capital city of the province of Newfoundland and Labrador. In 1975, the University
established a campus in Comer Brook, named Sir Wilfred Grenfell College. Comer
Brook is on the west coast of the province, 687 kilometres from St John's.
The total student enrolment in 1987/88 was:
Full-time
Part-time
11,322
4,462
Total
15,784
Luncheon Facilities
Luncheons, the principal service of the Club, were provided in the Dining Hall (see
Exhibit 4) from noon until two pm, Monday to Friday during academic terms. A selfserve buffet was the standard type of service provided. It was the principal activity the
Club provided for its members. The Club employed one manager (part-time basis) and
two waitresses (one full-time, one part-time). Hot food was provided by NOVA Services
Limited, a food services contractor. Cold food, such as salad, was prepared by the
waitresses.
The Survey
In response to the loss in the previous year and at the suggestion of one of the Directors,
the Board had undertaken a survey of all faculty and staff during the winter of 1989
(Exhibit 2). The survey was intended to obtain input in the areas of usage, services and
fees, as well as to determine the level of satisfaction with, and prospects for increasing
membership in the Club. While the Board had not yet had the opportunity to consider the
survey results in detail, board members hoped that this information, combined with an
analysis of the operating results, would provide the basis for any decisions about future
directions for the Club.
Questions
(1)
What actions, if any, would you recommend as a means of avoiding any future
deficit?
(2)
What actions, if any, would you recommend in response to the results of the
recent survey?
Exhibit 1
MEMORIAL UNIVERSITY FACULTY/STAFF CLUB, INC
STATEMENT OF RECEIPTS AND DISBURSEMENTS
FOR THE YEAR ENDED AUGUST 31.1988
1986 1987
Receipts from catering and bar services
$71,587
$72,424
Disbursements for catering and bar services (Note 5)
86,335 85,549
Excess of disbursements over receipts
from catering and bar services
14,748 13,125
Catering and bar supplies
Christmas bonuses 650
General expenses (Note 6)
Upgrade food service area
5,269 2,541
680
3,919 4,842
8,000
17,838 8,063
Operating deficit
32,586 21,188
Membership fees (membership 310,1988)
interest received
6,079 1,862
25,139 22,259
31,218 24,121
Excess of receipts over disbursements
(disbursements over receipts) for the year
$ (1,368) $2,933
Used for equipment purchases
$ 560 $ 504
Increase (decrease) to bank account (2,078) 2,743
Increase (decrease) in amounts
receivable and inventory
400
(1,456)
Decrease (increase) in accounts payable
(250) 1,142
$ (1,368)
$ 2,933
Opening balance in bank
$ 73,079
Increase (decrease) in bank account
$70,336
(2,078)
2,743
Closing balance in bank
$71,001
$73,079
Represented byCash float
$ 300 $300
Cash in bank (bank overdraft)
(4,899) 2,779
Guaranteed investment certificate (Note 7)
75,600
$71,001
$73,079
70,000
Source: Touche Ross, Chartered Accountants
NOTES TO FINANCIAL STATEMENT
1. Accounts receivable outstanding at year end amounted to $249 (1997 $158).
2. The value of the inventory of liquor, beer and wine on hand at year end, as determined
by the Secretary Treasurer amounted to $719 (1997 $382).
3. Fixed assets are recorded at cost, however, no provision for depredation is recorded in
the accounts. Fixed assets consist of
1988
1989
Chairs and Tables
Refrigerator counter
Hot food station
Scale 2,676 2,676
Coffee grinder 1,092
Stereo cassette player
Table cloths 666
Hot water heater
Wine rack
127
Miscellaneous 155
Angle rack
560
$22,515
$7,779 $7,779
4,152 4,152
4,117 4,117
1,092
940
940
666
251
251
127
155
$21,955
4. Accounts payable amounted to $902 at August 31, 1988 (1987 - $652) of which $600
relates to audit fees (1987 - $550).
5. Disbursements for catering and bar services
1988 1989
Food and liquor
Salaries and wages
$44,559 $52,840
41,776 32.709
$86,335 $85,549
6. General expenses
Dry cleaning
Printing and stationery
Bookkeeping and auditing
Music scholarship
Friday evening entertainment
Miscellaneous
Bank charges
Bad debts
1988 1989
$1,339 $1,415
312
511
600
640
150
150
510
1,875
798
190
210
51
10
$3,919 $4,842
7. Guaranteed investment certificate
This certificate was purchased on December 22,1987, matures on December 22, 1988,
and bears interest at 9% per annum. Interest is recorded at date of maturity.
Source: Touche Ross, Chartered Accountants
Exhibit 2
Survey
Please answer the following questions. An open-ended question is found at the end of the
survey for your general comments.
1.
At the present time, I am
Member
Non-Member
Faculty
staff
(Please indicate whether Member or Non-Member and whether Faculty or Staff.)
2.
1 eat at the Club:
(a) Weekly
(b) Occasionally
(c) Never
(d) Blank
3.
1 attend social functions at the Club:
(a) Whenever possible
(b) Occasionally
(c) Never
(d) Blank
4.
(a)
I consider the present membership fee (.0020 of salary) to be:
(a) Too high
(b) Too low
(c) Just right
(d) Blank
(b)
I would prefer a set fee, rather than a percentage of salary.
(a) Yes
(b) No
(c) Blank
5.
The purpose of the Faculty/Staff Club should be to:
(a) Bring faculty/staff together from across the campus
(b) Provide an opportunity for faculty/staff to meet in an informal environment
(c) Provide wholesome meals at a reasonable cost
(d) Provide social activities that Club members can attend
(e) Provide a comfortable, relaxing environment to socialize with colleagues
6.
(a)
Are you satisfied with the present facilities and service provided by the
Faculty/Staff Club?
(a) Yes
(b) No
(c) Blank
(b)
7.
If the answer to 6 (a) is "No", why not?
If facilities were available, I would be interested in:
(a) Entertainment on weekends
(b) Darts
(c) Billiards
(d) None
(e) Blank
8.
If the following facilities were available, I would make use of them:
(a) Private dining room for special occasions/groups, ie, formal dining
(b) Lounge with bar
(c) Small group meeting rooms
9.
If the above facilities were made available in a new Club, I would be willing.
(a) To pay an increased membership fee
(b) Not willing to pay an increased membership fee
(c) To join the Club
(d) To pay and join
(e) No increase but join
(f) Blank
Comments:
I would like to recommend the following considerations be taken into
account when planning any future changes to the present Faculty/staff
Club:
Exhibit 3
Survey Results
Non-Member Member
FacultyStaff
Facultystaff
Totals
114
106
89
25
334
2. (a)
(b)
(c)
(d)
1
58
52
3
0
30
75
1
52
31
1
5
9
15
1
0
62
134
129
9
3. (a)
(b)
(c)
(d)
0
25
85
4
0
10
95
1
11
40
38
0
1
12
11
1
12
87
229
6
(a) (a)
(b)
(c)
(d)
(e)
49
1
28
36
31
2
40
33
12
3
62
12
5
1
17
1
1
97
7
147
82
1
(b) (a) 78
(b)
18
(c)
18
56
28
22
41
36
12
9
13
3
184
95
55
5.* (a)
(b)
(c)
(d)
(e)
78
82
99
57
102
49
38
71
78
84
47
82
13
18
21
11
18
204
242
258
153
273
(a)
(b)
25
57
29
31
34
46
11
13
99
147
Questions
1.
4.
6.
(a)
(c)
32
46
9
1
88
(b)
-
-
-
-
-
-
7.
(a)
(b)
(c)
(d)
(e)
37
15
24
21
17
49
is
22
20
28
11
23
27
8
1
5
11
122
42
74
21
75
8.*
(a)
(b)
(c)
58
69
40
53
60
25
46
56
36
10
12
10
167
197
111
9.
(a)
(b)
(c)
(d)
(e)
(f)
5
12
50
17
6
24
10
13
73
57
17
7
-
12
10
2
-
10
8
1
84
52
132
17
6
43
* Some respondents provided more than one answer.
The following is a summary of the comments made in response to the two open ended
questions on the surveys.
Question 6 (b): Are you satisfied with the present facilities and services provided by
the Faculty/Staff Club?
Non-Member Faculty
 Too small and too much like a student dining room. It does not provide an attractive
atmosphere which is required to attract people to attend and spend time and money
there.
 Such a club should normally include a lounge with comfortable chairs, copies of
leading world newspapers, a bar, a dining room and a game room, Crucial for any
university is a place with adequate space for faculty and staff to meet. Without such
space divisions between faculty and staff will increase, and any hope for salvaging
what university spirit exists will atrophy.
Member Faculty
 For a faculty dub, it is a very low class facility
 it would be better if the Faculty Club were open some evenings for drinks.
 need place to sit and talk apart from tables
 when special events are on, are not notified early enough sometimes only one or
two days ahead of time.
 Many universities I have visited have facilities which make their dubs more than a
place to have lunch - with facilities which you are contemplating for a new dub.
 Since many people teach evenings, the Club should be open 5 - 7 PM, even if only
bar and snack service.
Non-Member Staff
 Entertainment and special events should encourage a mixing of all members. A
membership drive, with an incentive to join should be undertaken and promoted.
 I did not even know that staff were allowed to be members and I've been here for 4
years! This should be better publicized.
 Needs a much improved setting to entertain University guests.
Member Staff
 Main course usually not available at I o'clock-all out. Not near enough variety. Soup
and salad bar usually cleaned out by 1 o'clock.
 The club is too small and therefore too crowded most of the time. The noise level is
very high.
Comments: I would like to recommend the following considerations be taken into
account when planning any future changes to the present Faculty/Staff Club.
Non-Member Faculty
 There needs to be a ceiling on the percentage of salary membership fee. At present,
membership would cost me over $100 per year. I cannot justify my paying that
amount in order to eat in the Junior Common Room once or twice a week during my
teaching semesters. How about a $60 ceiling or several types of membership (meals,
social, shareholder, etc) or open up some of the services (eg, bar) to non-members?
Thanks for asking! Good luck!
 I would suggest some kind of encouragement/incentive circular be provided to faculty
early in the fall.
 Sony for my ignorance, but I've never been sure the purpose of a membership fee of
any substance. Does the dining room not pay for itself. Prices don't seem to be
subsidized. Surely a bar/loungeshould pay for itself. If a new building is envisaged,
then some fee is certainly reasonable.
Member Faculty
 I would like to see a place on campus where Faculty could socialize during the
evenings - it would be excellent to have a lounge with bar, open in. the evenings.
 -
more space for lounge/bar
better publicity
make faculty dub more part of MUN faculty life
 My current use of the dub often involves university guests. I think the dub (if it had
the facilities) could do well with a serviced area, more extensive menu, table
reservations, etc, so that I could entertain guests better (ie more style). For my own
lunch, etc, it is not bad now. I think it would be better to automatically make all
Faculty and Staff members of the Club so that Instead of membership fees, charge
more for various services etc - this would attract more users.
 Need for increased publicity, more space and improved meals with greater variety
appeared to be common concerns. A lounge with a bar would appeal to a number of
individuals.
 Some concern expressed over:
- cost;
- not centrally located;
- high noise level;
- minimum dress regulations;
- drab surroundings.
 Suggestion made to examine other Canadian Universities and simulate desirable
features.
Non-Member Staff
 My reason for not joining the Faculty/Staff Club is simple. I work in an
administrative office and when I attend such places, discussion seems to finally move
toward whether or not certain administrative decisions were fair. Therefore, I do not
get an opportunity to relax while I'm there.
 It has been a long time since I had heard anything about the Faculty/Staff Club. I had
thought that it had folded. There wasn't anything in the MUN newspaper about the FS
Club. I hope to join the Club - how do you join?
 None of these will work if you don't do a bit of promotion!! Why don't you get some
of the marketing students at the Business School to make some creative suggestions!
The staff do not (I think) represent very much of your membership. If you want them
to join, you have to provide a Faculty/Staff relationship that sets people from all areas
at ease with each other. My experience has been that Faculty who are members tend
to use it as a private club. I, as a Secretary, have never been invited to visit! If I was
made comfortable there, I might visit. What are you doing for secretary's week - next
week!!
 Glaring need for additional publicity (promotion) apparent. Monthly newsletter or
information in communicator suggested.
 Dissatisfaction re: variety and quality of meals. Also "Specials" being "all gone" by
1:00 pm mentioned.
 Lack of space (crowded conditions also sews to be a concern).
 Suggestions to improve the dub include:
 lounge and bar should be available for informal gatherings;
 club should be more centrally located;
 club should be kept open longer and on some nights.
Member Staff
 Since I do not take part in dub activities I do not feel qualified to answer. I joined the
dub in the hopes of having a nice, quiet place to lunch at a reasonable cost. The
surroundings are nice and the staff extremely friendly, however, I did think the prices
were a little high.
Exhibit 4
Memorial University Campus