As I finish my first two-year term as WSO Treasurer, I remain grateful for the opportunity to use the skills I have gathered through the years in this role. I am also very grateful for the help and support of Board Trustee, Martin C. Together we make up the ‘fantastic’ Finance Committee, which meets via Skype every other Tuesday. I also want to acknowledge Allen C., who was part of our Committee until mid-year 2014.

I am presenting both the Balance Sheet and the Profit and Loss (P&L) Statement that cover fiscal year 2014. These documents include a comparison to year-end 2013. 1Q 2015 Balance Sheet and 1Q 2015 P&L figures are also part of this report. Additionally, at the end of this report is a list of all 7th Tradition Contributions for 2014 and 1Q 2015.

Balance Sheet

WSO is doing very well financially, with an increase in Assets for 2014 of approximately $179,000. This is double what it was in 2013. A large portion of this was spent on the website redesign, which you’ll find reflected now as a new intangible asset near the bottom of the Balance Sheet. This will be amortized over 15 years. In other words, it’s a depreciating asset, just as tangible assets depreciate.

We continue to show designations on the Balance Sheet for funds in the Current Assets section at the top. As we are now hiring more Special Workers, more of these funds are expected to be used. We also have to prepare for near term expansion of storage space, and the eventual move to a larger facility, which means being prudent in how funds are managed. As many of us have seen, organizations that don’t prepare for the future can be blindsided when the future arrives. Fortunately, WSO is in a position of being able to prepare for the future.

Martin and I just recently learned that part of the future is preparing for a much more expensive audit than previously thought. When non-profits reach a threshold of $2MM in gross receipts, which for us means Sales and 7th Tradition contributions, a full audit is required. We’ve been told it could be expected to cost upwards of $75,000. While this is several years away, we are now adding more funds each month into the Audit line.

Profit and Loss Statement

The overall surplus for 2014 was $179,000, which is double what it was for 2013. This matches the increase in Assets noted above in the Balance Sheet section. This is significantly greater than the $5,500 surplus only just over 2 years ago in 2012. The current sustainability of the Distribution Center (DC) that started in 2013 is a direct result of improved efficiencies, increased book sales, and the introduction of the meditation book.

For internal management purposes, we distinguish between income and expenditures of the DC and other WSO resources and activities. This helps the Board make more effective decisions because we can see the flow of funds better. In 2015 there will be a significant change in the expenses in the WSO cost center with the recruitment of Special Workers.   

Thank you for the privilege of serving the Fellowship in this capacity. It has become a lot of work, but we will shortly be hiring a Special Worker to do some of what I do, as well as accomplish things that have been on drawing board that I haven’t had time to implement. This will help ensure that all funds will continue to be managed appropriately.

Respectfully submitted,

Mary Jo L

WSO Treasurer and Board Trustee