Treasurer's June Financial Report

[michael h schneider]

The text of the June financial report cover memo from Treasurer David Wood:


June?s net operating result was a positive $1 thousand--that is, breakeven. This was well below budget, but with much of the variance a timing difference (a Bulletin was paid for in June instead of May). Dues at $101 thousand were just slightly short of budget and last year. Museum revenues remained light, and School revenues fell off the pace of recent months and remain below budget. Spending other than the Bulletin cost was generally in line with recent patterns.

For the year to date, the net operating result is a positive $69 thousand. This is less than last year but better than expectations. Expenses are running favorably in total, in part due to temporary staff vacancies. Revenues are a problem. Dues, Museum admissions plus net sales, and School revenues are significantly below budget and also well below last year. Activity subsidies (net activity cash flow) are less than budget so far this year, but are likely to deteriorate if corresponding revenues don?t improve.

There have still been no withdrawals from the investment accounts to pay operating expenses. Trade accounts payable were $131 thousand at the end of June, somewhat higher than May but still at a satisfactory level. The gross liquidity reserve (investments less loan balance) was $1.215 million, a decline of $22 thousand from May led by a decrease in investment market values.

Some perspective on how we?re doing may be drawn from the first chart in the attached exhibits. NAWCC?s net cash flow pattern is seasonal, with the first fiscal quarter normally the most positive one. Then cash flow tends to turn negative until November-December. This year we?re seeing definitely lower income as we approach the higher expense months of August-September, and I?d expect negative cash flow in the second quarter to pose some call on our reserves.


David Wood
Treasurer
davhalwood@prodigy.net
(moderator's note: no exhibits attached)

[michael h schneider]

The text of the June financial report cover memo from Treasurer David Wood:


June?s net operating result was a positive $1 thousand--that is, breakeven. This was well below budget, but with much of the variance a timing difference (a Bulletin was paid for in June instead of May). Dues at $101 thousand were just slightly short of budget and last year. Museum revenues remained light, and School revenues fell off the pace of recent months and remain below budget. Spending other than the Bulletin cost was generally in line with recent patterns.

For the year to date, the net operating result is a positive $69 thousand. This is less than last year but better than expectations. Expenses are running favorably in total, in part due to temporary staff vacancies. Revenues are a problem. Dues, Museum admissions plus net sales, and School revenues are significantly below budget and also well below last year. Activity subsidies (net activity cash flow) are less than budget so far this year, but are likely to deteriorate if corresponding revenues don?t improve.

There have still been no withdrawals from the investment accounts to pay operating expenses. Trade accounts payable were $131 thousand at the end of June, somewhat higher than May but still at a satisfactory level. The gross liquidity reserve (investments less loan balance) was $1.215 million, a decline of $22 thousand from May led by a decrease in investment market values.

Some perspective on how we?re doing may be drawn from the first chart in the attached exhibits. NAWCC?s net cash flow pattern is seasonal, with the first fiscal quarter normally the most positive one. Then cash flow tends to turn negative until November-December. This year we?re seeing definitely lower income as we approach the higher expense months of August-September, and I?d expect negative cash flow in the second quarter to pose some call on our reserves.


David Wood
Treasurer
davhalwood@prodigy.net
(moderator's note: no exhibits attached)