VP Finance
2002 (Winter) Report
Hope Club,
Providence RI
February 13, 2002
The unaudited financial statements for calendar and fiscal year 2001 have been posted on the Society's Web page and are attached to this report. The Society closed out 2001 with an unaudited operating surplus of $73,329 when reported on a cash basis. The Society's unaudited balance as of December 31, 2001 was $312,345 as opposed to $238,922 at the same time the previous year.
I believe that these overall figures overstate how
well the Society did last year. Several
factors arising from the cash basis of our accounts makes the operating surplus
appear larger that it should (were we on an accrual basis)
· During the previous year
(2000) the Society paid a $20,000 advance for the Atlanta Conference.
· During 2001, the University
at Albany Account that supports the Society spent approximately $125,000 on
behalf of the Society, whereas the Society only contracted for $111,211
(because web support was moved into the University at mid-year). Hence, during 2001, the Society ran down
about $14,000 in its balance at the University of Albany account.
Below are some additional comments that summarize
what I see in the 2001 unaudited reports:
· Overall Society operations
and financial performance continue to be volatile and are not being well
predicted by the VP Finance. The budget
for 2001 projected an operating loss of over $26,000 and the present operating
surplus was and is unexpected.
· The Atlanta conference
performed well financially yielding a balance in 2001 of $61,470 ($41,470 when
the year 2000 advance payment is taken into account). A closer analysis of the conference books (not attached to my
report) reveal that bundling breaks and some event fees into the conference
room and meal charge plus strong sponsorship explains most of this strong
performance. (Overall operating surplus for all years was $33,184.)
· Product sales were up by
approximately $25,000 contributing to an overall operating surplus in product
sales of $77,195.
· As has been the case in the
past, three key cost centers posted an operating loss—Core Operations
(-$16,242), Web Presence (-$2,405), and Publications (-$28,415).
My summary analysis is that the Society continues to
do well financially primarily due to the entrepreneurial activities of the home
office staff and that we could not come near to supporting our present level of
activity based on membership dues, sponsorship, and other stable and recurring
sources of income.
Attachments:
1.
2001
vs. 2000 Profit and Loss Previous Year Comparison—unaudited
2.
Profit
and Loss by Cost Centers for 2001—unaudited
3.
2001
vs. 2000 Balance Sheet Comparisons as of December 31—unaudited