michael h schneider
04-24-2002, 03:32 PM
Following is the text of the cover memo to the March financial report from NAWCC Treasurer David Wood. There are no attachmentss to this cover page
davhalwood@prodigy.net
Attached are financial exhibits for March, concluding fiscal year 2002. These are preliminary results, as the annual audit is just getting underway.
The operating result for the month of March was a positive $73 thousand, far better than the negative budget and prior year figures. The favorable variances occurred in compensation, printing, and donations. The first two variances are timing differences. Budget and prior year included three paydays, whereas actual results had two (the 3-payday month was January this year). Similarly, printing and related postage charges corresponding to March budget and prior March were actually incurred in February this year. As to the donations, two gifts of $12,500 and $10,000 were booked in Headquarters and the School respectively during March. March dues of $129 thousand were $5 thousand below budget and $10 thousand below prior year.
For the full fiscal year, the net operating result was a positive $178 thousand, versus budget of $11 thousand positive and a prior year deficit of $73 thousand. This result includes at least $33 thousand of recent unusual donations for which the corresponding expenses have not yet been incurred, so a more conservative figure would be $145 thousandstill much better than has been expected. The $90 thousand withdrawn from investments in August and October to pay operating expenses was all returned to the investment account in March. Accounts payable ended the year at $28 thousand, the lowest level in recent years. The gross liquidity reserve (investments less loan balance) ended the year at $1.372 million, the highest year-end figure in recent years.
Overall, operations were self-supporting on a cash basis in FY2002 for the first time in four years. Accounts payable were reduced by $112 thousand, and our gross liquidity reserve improved by $150 thousand during the year. These are excellent results for the year. The manner of their achievement is of interest as we start another year.
The dominant factor in the positive results was reduction of total expenses from prior year by over $220 thousand (10%). Details can be seen in the accompanying exhibits; contributors included reductions in printing, advertising, compensation and related costs, utilities and insurance, and Council and committee expenses.
Key "traditional" revenues declined during the year. Compared to prior year, member dues were down by $56 thousand (4%), museum admissions were down by $22 thousand (24%), and publications revenues were down by $11 thousand (5%). These declines were actually more than offset by income increases elsewhere: the schools recovery, in which tuition income rose by $46 thousand (22%); our first success in attracting grants ($26 thousand); and increased donations, especially in the school ($23 thousand). In total, operational inflows ended up rising by 1%.
The increase in the gross liquidity reserve arose primarily from the $175 thousand reduction in the outstanding loan balance as we made loan payments, partly offset by a modest and expected decline in the market value of the investments over the year. Our ability to return money withdrawn during the year effectively preserved this increase for future use if necessary.
Looking ahead, it appears likely that member dues will continue to decline while school growth slows to more normal rates and expenses increase due to budgeted investments in future growth. The keys to the outcome in FY2003 will therefore be our degree of success with regard to membership growth and also our ability to increase grants and donations for operational purposes. This outlook is consistent with the discussion underlying the recently approved FY2003 budget, and although the challenges remain quite sizeable, we are at least entering the year better positioned than we expected at the time the budget was formulated.
By way of reminder, our monthly internal reports are prepared for internal use in managing our cash resources. The annually produced audited financials are prepared largely for external use in examining our total economic performance, and they take account of non-cash as well as cash itemsnotably including depreciation and unrealized investment gains. This years audited financials should reflect considerable improvements over prior year for the reasons summarized above, but may well fall short of showing a positive increase in net assets.
David Wood, Treasurer
davhalwood@prodigy.net
davhalwood@prodigy.net
Attached are financial exhibits for March, concluding fiscal year 2002. These are preliminary results, as the annual audit is just getting underway.
The operating result for the month of March was a positive $73 thousand, far better than the negative budget and prior year figures. The favorable variances occurred in compensation, printing, and donations. The first two variances are timing differences. Budget and prior year included three paydays, whereas actual results had two (the 3-payday month was January this year). Similarly, printing and related postage charges corresponding to March budget and prior March were actually incurred in February this year. As to the donations, two gifts of $12,500 and $10,000 were booked in Headquarters and the School respectively during March. March dues of $129 thousand were $5 thousand below budget and $10 thousand below prior year.
For the full fiscal year, the net operating result was a positive $178 thousand, versus budget of $11 thousand positive and a prior year deficit of $73 thousand. This result includes at least $33 thousand of recent unusual donations for which the corresponding expenses have not yet been incurred, so a more conservative figure would be $145 thousandstill much better than has been expected. The $90 thousand withdrawn from investments in August and October to pay operating expenses was all returned to the investment account in March. Accounts payable ended the year at $28 thousand, the lowest level in recent years. The gross liquidity reserve (investments less loan balance) ended the year at $1.372 million, the highest year-end figure in recent years.
Overall, operations were self-supporting on a cash basis in FY2002 for the first time in four years. Accounts payable were reduced by $112 thousand, and our gross liquidity reserve improved by $150 thousand during the year. These are excellent results for the year. The manner of their achievement is of interest as we start another year.
The dominant factor in the positive results was reduction of total expenses from prior year by over $220 thousand (10%). Details can be seen in the accompanying exhibits; contributors included reductions in printing, advertising, compensation and related costs, utilities and insurance, and Council and committee expenses.
Key "traditional" revenues declined during the year. Compared to prior year, member dues were down by $56 thousand (4%), museum admissions were down by $22 thousand (24%), and publications revenues were down by $11 thousand (5%). These declines were actually more than offset by income increases elsewhere: the schools recovery, in which tuition income rose by $46 thousand (22%); our first success in attracting grants ($26 thousand); and increased donations, especially in the school ($23 thousand). In total, operational inflows ended up rising by 1%.
The increase in the gross liquidity reserve arose primarily from the $175 thousand reduction in the outstanding loan balance as we made loan payments, partly offset by a modest and expected decline in the market value of the investments over the year. Our ability to return money withdrawn during the year effectively preserved this increase for future use if necessary.
Looking ahead, it appears likely that member dues will continue to decline while school growth slows to more normal rates and expenses increase due to budgeted investments in future growth. The keys to the outcome in FY2003 will therefore be our degree of success with regard to membership growth and also our ability to increase grants and donations for operational purposes. This outlook is consistent with the discussion underlying the recently approved FY2003 budget, and although the challenges remain quite sizeable, we are at least entering the year better positioned than we expected at the time the budget was formulated.
By way of reminder, our monthly internal reports are prepared for internal use in managing our cash resources. The annually produced audited financials are prepared largely for external use in examining our total economic performance, and they take account of non-cash as well as cash itemsnotably including depreciation and unrealized investment gains. This years audited financials should reflect considerable improvements over prior year for the reasons summarized above, but may well fall short of showing a positive increase in net assets.
David Wood, Treasurer
davhalwood@prodigy.net