michael h schneider
11-29-2001, 02:23 PM
Following is the text of the cover memo to the October financial report from NAWCC Treasurer David Wood.
davhalwood@prodigy.net
October's net operating result was $5 thousand negative. That's $9 thousand off budget primarily due to Publications results for the month--weak income and a large printing payment. School results were also below budget due to weak student revenues. Otherwise, results were generally satisfactory relative to budget. Dues at $110 thousand were slightly over budget and the highest monthly result this year, though still below last year's level. The new member dues increase took effect in October, and trends in numbers of new members will be of interest in the next several months.
For the full year to date, our net cash operating result is a positive $15 thousand. It's below budget primarily due to weakness in dues and in Museum revenues (the Publications variance should be temporary). It's considerably better than prior year despite pervasively lower revenues, due to generally tightened expenses (some of which has been staff vacancies). Results for the seasonally difficult months August-October in particular were much improved this year: losses totaled $79 thousand vs. $125 thousand last year.
As noted in last month's report, $50 thousand was transferred from investments in early October to meet some immediate payment needs. Total such transfers this year stand at $90 thousand.
The end-October gross liquidity reserve (investments less loan balance) was $1.380 million, a modest $5 thousand increase from August. This remains a much improved position over the past year despite the continuing need to support negative operational cash flows. Trade accounts payable ended the month at $109 thousand, an $8 thousand increase over September and still a reasonable level for us.
In summary, both operating results and our cash position are improved over prior year because we're spending more conservatively. Achieving consistent positive cash flow remains a challenge. Tight cost management can buy a limited amount of time, but meeting that challenge requires further progress at increasing revenues.
David Wood, NAWCC Treasurer
davhalwood@prodigy.net
davhalwood@prodigy.net
October's net operating result was $5 thousand negative. That's $9 thousand off budget primarily due to Publications results for the month--weak income and a large printing payment. School results were also below budget due to weak student revenues. Otherwise, results were generally satisfactory relative to budget. Dues at $110 thousand were slightly over budget and the highest monthly result this year, though still below last year's level. The new member dues increase took effect in October, and trends in numbers of new members will be of interest in the next several months.
For the full year to date, our net cash operating result is a positive $15 thousand. It's below budget primarily due to weakness in dues and in Museum revenues (the Publications variance should be temporary). It's considerably better than prior year despite pervasively lower revenues, due to generally tightened expenses (some of which has been staff vacancies). Results for the seasonally difficult months August-October in particular were much improved this year: losses totaled $79 thousand vs. $125 thousand last year.
As noted in last month's report, $50 thousand was transferred from investments in early October to meet some immediate payment needs. Total such transfers this year stand at $90 thousand.
The end-October gross liquidity reserve (investments less loan balance) was $1.380 million, a modest $5 thousand increase from August. This remains a much improved position over the past year despite the continuing need to support negative operational cash flows. Trade accounts payable ended the month at $109 thousand, an $8 thousand increase over September and still a reasonable level for us.
In summary, both operating results and our cash position are improved over prior year because we're spending more conservatively. Achieving consistent positive cash flow remains a challenge. Tight cost management can buy a limited amount of time, but meeting that challenge requires further progress at increasing revenues.
David Wood, NAWCC Treasurer
davhalwood@prodigy.net