michael h schneider
11-01-2001, 03:33 AM
From David Wood, NAWCC Treasurer:
Following is the text of the cover memo to the September financial report.
davhalwood@prodigy.net
September?s net operating result was $14 thousand negative. Overall revenues were again on the weak side. Dues at $89 thousand were $9 thousand below last year and $5 thousand below budget. School revenues fell by half in the month (a lull between class sessions), and museum revenues fell $3 thousand below budget. Publications revenues were on budget.
The month?s net results are perhaps best evaluated by looking at August and September combined. As noted previously, August 2001 was a 3-payday month, which cost roughly $35 thousand more than a normal 2-payday month. Last year?s results and this year?s budget both had their 3-payday month in September, so their big hit was in September rather than August. For both months combined, last year?s result was $116 thousand negative, this year?s budget $23 thousand negative, and this year?s actual result $74 thousand negative. So our recent results are better than last year?s in the same period, but well off budget.
For the full year to date, our net cash operating result is a positive $19 thousand. This is $33 thousand better than last year, with improvements in the school and publications subsidies partly offset by higher central costs. It is $14 thousand worse than budget, with the larger adverse variances evident in museum subsidy, central costs, and dues. The museum issues are revenues and staff costs, partly offset by savings in professional services and advertising. The dues issue has been clear all year as membership is slowly ebbing. Dues are now $27 thousand below revised budget and $47 thousand below last year.
No withdrawals were made from the investment accounts to pay operating expenses during September, and trade accounts payable were $101 thousand at the end of the period, a healthy net $22 thousand reduction from August. However, we ended the month with a low checking account balance and did transfer $50 thousand from investments in early October to meet some immediate payment needs. Total such transfers this year amount to $90 thousand.
The end-September gross liquidity reserve (investments less loan balance) was $1.375 million, a sizeable $93 thousand increase from August. Of this, $79 thousand is one-time market value increase driven by recent Federal Reserve market actions. Our reserve position as measured using investment market values is the strongest it?s been in the last several years. However, this position will certainly erode as the investments approach maturity and we continue to make withdrawals to support operations.
Looking forward, the second half in recent years has produced negative net results. The revised budget for this year anticipates a net second-half loss of $22 thousand. This will be reviewed in the upcoming development of next year?s budget. Meanwhile, two items to watch in October are member dues (new member dues increase will have just taken effect) and school revenues (should rebound as new classes begin).
David Wood, NAWCC Treasurer
davhalwood@prodigy.net
Following is the text of the cover memo to the September financial report.
davhalwood@prodigy.net
September?s net operating result was $14 thousand negative. Overall revenues were again on the weak side. Dues at $89 thousand were $9 thousand below last year and $5 thousand below budget. School revenues fell by half in the month (a lull between class sessions), and museum revenues fell $3 thousand below budget. Publications revenues were on budget.
The month?s net results are perhaps best evaluated by looking at August and September combined. As noted previously, August 2001 was a 3-payday month, which cost roughly $35 thousand more than a normal 2-payday month. Last year?s results and this year?s budget both had their 3-payday month in September, so their big hit was in September rather than August. For both months combined, last year?s result was $116 thousand negative, this year?s budget $23 thousand negative, and this year?s actual result $74 thousand negative. So our recent results are better than last year?s in the same period, but well off budget.
For the full year to date, our net cash operating result is a positive $19 thousand. This is $33 thousand better than last year, with improvements in the school and publications subsidies partly offset by higher central costs. It is $14 thousand worse than budget, with the larger adverse variances evident in museum subsidy, central costs, and dues. The museum issues are revenues and staff costs, partly offset by savings in professional services and advertising. The dues issue has been clear all year as membership is slowly ebbing. Dues are now $27 thousand below revised budget and $47 thousand below last year.
No withdrawals were made from the investment accounts to pay operating expenses during September, and trade accounts payable were $101 thousand at the end of the period, a healthy net $22 thousand reduction from August. However, we ended the month with a low checking account balance and did transfer $50 thousand from investments in early October to meet some immediate payment needs. Total such transfers this year amount to $90 thousand.
The end-September gross liquidity reserve (investments less loan balance) was $1.375 million, a sizeable $93 thousand increase from August. Of this, $79 thousand is one-time market value increase driven by recent Federal Reserve market actions. Our reserve position as measured using investment market values is the strongest it?s been in the last several years. However, this position will certainly erode as the investments approach maturity and we continue to make withdrawals to support operations.
Looking forward, the second half in recent years has produced negative net results. The revised budget for this year anticipates a net second-half loss of $22 thousand. This will be reviewed in the upcoming development of next year?s budget. Meanwhile, two items to watch in October are member dues (new member dues increase will have just taken effect) and school revenues (should rebound as new classes begin).
David Wood, NAWCC Treasurer
davhalwood@prodigy.net