Treasurer's May Financial Report

[michael h schneider]

The budget figures in this report are based on the currently approved budget, which will be reviewed by Council in July.

May?s net operating result was a positive $23 thousand. This was somewhat better than budget on balance. Dues at $104 thousand were far short of budget and last year. Other revenues were flat with prior month except Publications, whose advertising income more than doubled. Spending picked up over prior month but remained low enough, helped by staff vacancies, to mitigate the income shortfalls.

For the year to date, the net operating result is a positive $68 thousand, better than expectations due to lower activity expenses but below last year due to higher central expenses and lower revenues. Dues are running below last year by 9%, and Museum admissions and sales by over 20%. School income is also below prior year, though it has picked up strength in recent months. It?s still a bit early to tell where expenses are going, but the weak dues and Museum income seem clearly a problem at this time of the year.

So far this year there have been no withdrawals from the investment accounts to pay operating expenses. Trade accounts payable were $114 thousand at the end of May, a very satisfactory level. The gross liquidity reserve (investments less loan balance) was $1.237 million, basically unchanged from prior month.

Falling market interest rates will cause some drag on our liquidity reserve going forward.Proceeds from maturing CD?s will gradually be invested at reduced yields. Of more immediate impact, much of our bond portfolio is being turned over as borrowers exercise their right to prepay. $100 thousand of bonds were called in April and $2.25 million in May. We know of another $1 million so far in June. When these bond proceeds are reinvested, our investment income will have fallen by around $25 thousand annually. This means less income to make loan payments and therefore less money in liquidity reserve. It?s another reason we have little room to finance budget risks under present conditions.



David Wood, Treasurer
davhalwood@prodigy.net

[michael h schneider]

The budget figures in this report are based on the currently approved budget, which will be reviewed by Council in July.

May?s net operating result was a positive $23 thousand. This was somewhat better than budget on balance. Dues at $104 thousand were far short of budget and last year. Other revenues were flat with prior month except Publications, whose advertising income more than doubled. Spending picked up over prior month but remained low enough, helped by staff vacancies, to mitigate the income shortfalls.

For the year to date, the net operating result is a positive $68 thousand, better than expectations due to lower activity expenses but below last year due to higher central expenses and lower revenues. Dues are running below last year by 9%, and Museum admissions and sales by over 20%. School income is also below prior year, though it has picked up strength in recent months. It?s still a bit early to tell where expenses are going, but the weak dues and Museum income seem clearly a problem at this time of the year.

So far this year there have been no withdrawals from the investment accounts to pay operating expenses. Trade accounts payable were $114 thousand at the end of May, a very satisfactory level. The gross liquidity reserve (investments less loan balance) was $1.237 million, basically unchanged from prior month.

Falling market interest rates will cause some drag on our liquidity reserve going forward.Proceeds from maturing CD?s will gradually be invested at reduced yields. Of more immediate impact, much of our bond portfolio is being turned over as borrowers exercise their right to prepay. $100 thousand of bonds were called in April and $2.25 million in May. We know of another $1 million so far in June. When these bond proceeds are reinvested, our investment income will have fallen by around $25 thousand annually. This means less income to make loan payments and therefore less money in liquidity reserve. It?s another reason we have little room to finance budget risks under present conditions.



David Wood, Treasurer
davhalwood@prodigy.net