Treasurer's August Financial Report

[michael h schneider]

Following is the text of the cover memo to the August Financial Report from NAWCC Treasurer David Wood. He can be reached by email at
davhalwood@prodigy.net
No exhibits are included in this message
**************************************

The basis for budget comparison has been changed this month to the revised budget presented to Council in New Orleans and approved in early September. An extra exhibit this month shows both the original budget and the revised budget.

July?s net operating result was $60 thousand negative. This is a large number, driven by a combination of continued weak revenues and a spike in expenses. Member dues were $101 thousand for the third month in a row, maintaining a flat pattern $6 thousand below plan. Museum admissions, net gift shop sales and publication revenues were also flat and $9 thousand below plan in total. School revenues were $7 thousand below expectations. The expense spike was caused primarily by a 3-payday month along with bimonthly Bulletin expenses, but there were also bulges in Council and Trustee expenses (for recent meetings), and we paid the annual audit fees in the month. Supplies, telephone and general postage were above average. School expenses now reflect the arrival of the new school Director.

For the year to date, the net cash operating result is a positive $33 thousand. Comparison to prior year and budget is distorted by one more payday in this year?s results (worth about $35 thousand), but this will even out next month. Even so, results are below expectations, primarily because member dues and other revenues are down. Further detail can be seen in the usual second exhibit in this package.

As reported last month, there was a $40 thousand withdrawal from the investment accounts to pay operating expenses during August. Trade accounts payable were $123 thousand at the end of August, a net $10 thousand reduction from July due entirely to reductions in prior yearend balances. The gross liquidity reserve (investments less loan balance) was $1.282 million, a modest $5 thousand decrease from July and still some $60 thousand higher than at the beginning of this fiscal year.

I expect cash flow to be negative again in September, as indications are that dues and admissions have again been weaker than budgeted, and we caught up pension contributions for this year during the month. No withdrawals were made in September from the investment accounts to pay operating expenses, but such a withdrawal will almost certainly occur in early October.

David Wood, NAWCC Treasurer
davhalwood@prodigy.net

[michael h schneider]

Following is the text of the cover memo to the August Financial Report from NAWCC Treasurer David Wood. He can be reached by email at
davhalwood@prodigy.net
No exhibits are included in this message
**************************************

The basis for budget comparison has been changed this month to the revised budget presented to Council in New Orleans and approved in early September. An extra exhibit this month shows both the original budget and the revised budget.

July?s net operating result was $60 thousand negative. This is a large number, driven by a combination of continued weak revenues and a spike in expenses. Member dues were $101 thousand for the third month in a row, maintaining a flat pattern $6 thousand below plan. Museum admissions, net gift shop sales and publication revenues were also flat and $9 thousand below plan in total. School revenues were $7 thousand below expectations. The expense spike was caused primarily by a 3-payday month along with bimonthly Bulletin expenses, but there were also bulges in Council and Trustee expenses (for recent meetings), and we paid the annual audit fees in the month. Supplies, telephone and general postage were above average. School expenses now reflect the arrival of the new school Director.

For the year to date, the net cash operating result is a positive $33 thousand. Comparison to prior year and budget is distorted by one more payday in this year?s results (worth about $35 thousand), but this will even out next month. Even so, results are below expectations, primarily because member dues and other revenues are down. Further detail can be seen in the usual second exhibit in this package.

As reported last month, there was a $40 thousand withdrawal from the investment accounts to pay operating expenses during August. Trade accounts payable were $123 thousand at the end of August, a net $10 thousand reduction from July due entirely to reductions in prior yearend balances. The gross liquidity reserve (investments less loan balance) was $1.282 million, a modest $5 thousand decrease from July and still some $60 thousand higher than at the beginning of this fiscal year.

I expect cash flow to be negative again in September, as indications are that dues and admissions have again been weaker than budgeted, and we caught up pension contributions for this year during the month. No withdrawals were made in September from the investment accounts to pay operating expenses, but such a withdrawal will almost certainly occur in early October.

David Wood, NAWCC Treasurer
davhalwood@prodigy.net