[Ofa_boardplus] Treasurer's mid-year report
jimdryan at gmail.com
Tue Aug 18 08:57:31 PDT 2020
This is a report on the OFA’s financial position as of June 30. As you all
know the OFA’s financial plan is to have a loss for 2020.
While this may not be prudent under conventional circumstances, we are
going through a rebuilding period which has already produced some
remarkable results which have been reported on in detail elsewhere. This
includes the creation of the important new FSDP program and the development
of new Bylaws and IPR policy. The former is an important new benefit for
members. The FSDP program and new bylaws and IPR policy will be beneficial
for recruiting new members.
This year we’ve suffered a reduction in membership due to mergers and
acquisitions and some companies deciding it’s not in their business
interests to be Promoter members. The budget is based on reduced dues
income, $124,000. We plan for an operating loss of $9,943 but the actual
loss is slightly better at $1,765. There are no significant operating
expenses on the horizon, and there’s some chance the biggest single
expense, marketing, might be reduced, though we don’t yet know by how much.
The results are not as good, and the outlook is also not good in the area
of Other Expense. The budget for the Executive Director was reduced
significantly to $42,188 because of actual expenses in 2019. However, the
expense was $30,284 due to the significant time required for Workshop
planning, the Bylaws project, and other activities. While there may be a
slight improvement, significant progress is doubtful.
Our Chair, Doug Ledford, has carefully negotiated scheduled payments to
UNH-IOL to $24,500 for support of the FSDP program this year. Additional
payments have been scheduled for 2021. This is an unplanned expense and the
benefits we expect to see won’t materialize until 2021. This will
potentially come in the form of new members and increased membership dues.
The result of all this is an operating loss of $59,433 against a full-year
planned loss of $47,692.
Again, these losses, budgeted and in some cases unexpected are part of a
conscious plan to manage through this period of significant change. We also
have a significant reserve of $172,523 compared to what we agree is
required, $100,000 based on very conservative estimates.
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