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AAA Financials for 2005

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  • Melvin Johnson
    ... 2005 for the AAA. The fingures for 2004 were worrisome but in general thingsare improving in terms of management resources. I do offer the following
    Message 1 of 1 , Jul 13, 2006
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      >Recently, I received a copy of the audited financial reports for FY
      2005 for the AAA. The fingures for 2004 were worrisome but in general
      thingsare improving in terms of management resources. I do offer the
      following

      >for your edification. I have done a partial ratio analysis of the
      >financials and a horizontal and vertical analysis of the income statement
      >and balance sheets. Below are highlights of this analysis:
      >2004-2005 Balance sheet comparisons (significant or notable items only):
      >Cash and cash equivalents have increased by $170,000 +or-, and our
      >Investments have decreased from 2004 to 2005 by approximately $500,000.
      >Our Accounts Payable decreased by $110,000 between 2004 and 2005, and our
      >unrestricted funds for operations have decreased by $140,000. In contrast
      >the funds for the sections have increased by $60,000 approximately. The
      >temporarily restricted funds decreased by $350,000 and the permanently
      >restricted funds have increased by $16,000.
      >
      >2004-2005 Statement of Activities (Income Statement) comparisons
      >(significant or notable items only): Revenues from membership increased by
      >$40,000, and publications revenues increased by $155,000. In general all
      >revenues increased by $500,000. In terms of expenses, publications
      >decreased by $130,000, Public education increased by $275,000 and sections
      >expenses increased by $120,000. In general our expenses for 2005 were
      >about $660,000 less than 2004. However, we still ended the year in the
      >hole by $418,000, down from a minus $658,000. So some improvement. I
      >should not that part of this reflects a removed of over $400,000 from
      >temporarily restricted funds from the Mellon grant for AnthroSource
      >development.
      >
      >2004-2005 Statement of Cash Flows (how does money come and go out) General
      >operations still does not generate enough cash to pay for itself. We had a
      >deficit of $440,000 here. In other words other items must help pay for
      >general operations. If this were a company, in would not be in business
      >very long nor would it be able to get financing from outside sources. The
      >goal should be that we generate enough cash within our normal operations to
      >pay our bills. Additions to cash flow which covered the operating deficit
      >were generated from the sale of investments, to the tune of approximately
      >$600,000. Some of which was used to purchase additional equipment. Thus
      >we had a net increase in cash and cash equivalents of more than $171,000
      >which beef up our checking account over last years balance of $42,000
      >approximately.
      >
      >Ratios: Current Ratio (comparison of current assets--can be converted to
      >cash within one year--to current liabilities--must be paid within a year)
      >$626,392/886,188 = .7057, or in other words we had on December 31st enough
      >relative liquid assets to pay off about 70% of our bills. For the Quick
      >Ratio or sometimes called the Acid Test, the number is lower. This
      >compares highly liquid assets (converted to cash immediately) to all
      >current liabilities--494,582/886,188 = .5581, or in other words on December
      >31st we had enough cash and cash equivalent assets to cover about 56% of
      >our current bills. The Receivables Turnover and collection period
      >calculations show very effective managment of collection of dues and monies
      >from publications. The turnover ratio is 13.375 which equates or a
      >collection period of approximately 27 days. However, our Number of Days
      >Payable (how long does it take us to pay our bills) we have approximately
      >62.5 days. Our Asset Turnover ratio (or how well do our assets generate
      >revenue) we have a 0.5965 or in other words approximately 60% of our assets
      >generate revenue, this is very low--one would hope to see something on the
      >order or 1.0 here. Our Debt to Total Asset ratio (or how much of our total
      >assets is paid for with debt) is a 0.2547 or approxiamtely 25%--this is
      >good as it means we the members own approximately 75% of all our assets.
      >
      >Data derived from the Notes to the Financial Statements. Our investments
      >on December 31, 2005 cost the AAA a total of $7,126,067 but the fair market
      >value of these investments is $7,583,900. The most notable increase came
      >from Equities. These investments provided us with approximately $200,000
      >income after removal of unrealized losses and investment fees and including
      >realized gains. The AAA's temporarily restricted assets are dominated by
      >three grants: Mellon Foundation ($294,000), The Ford Foundation
      >($365,000), and the Minority Fellowship Fund ($132,000). The permanently
      >restricted assets are dominated by monies from sections which relate to
      >specific section activities--total amount approximately $276,000.
      >Concerning Commitments and risks there are three of note: The rental
      >expense for the offices of approximately $230,000 for 2006, commitment to
      >UCP for AnthroSource and publications of approximately $314,000 for 2006
      >and 2007, and the Hotel contracts for annual meetings through 2012 which
      >total $678,000. The hotel contract with Hilton in San Francisco had a
      >cancellation fee of $339,366 but was negotiated down to approximately
      >$200,000 which will be paid this year.
      >
      >Supplemental Information which relate to our section or sections in
      >general: The total expenses for all sections for 2005 was $596,539 or
      >which $340,750 was for publications. Thus the balance of $255,789 went for
      >operating the sections. Concerning section balances or changes in their
      >funds from the beginning of 2005 to the end is interesting. of the 36
      >sections, 12 sections expended more than $1000 than they took in. The
      >largest deficit was the Archaeology Division with $11,000. Most of the
      >other sections exceeded their revenues between $1,000 and $4,000. In terms
      >of showing a gain there were 17 sections that had surpluses of more than
      >$1,000. The greatest surplus was the Society for Cultural Anthropology
      >with an increase of $30,085. We were number 4 with an increase of $7,704.
      >In general the sections expenses were lower than their revenues by
      >approximately 8%.
      >
      >I hope you find the above helpful. If you have any questions, let me know,
      >and if you want to share this info with the membership of other sections
      >that's okay. Mel Johnson, SACC Treasurer
      >
      >"Life is a banquet, and most poor suckers are starving to death." --Mame
      >Dennis
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