TREASURER AND FINANCE COMMITTEE REPORT – FEBRUARY 2018
Dear Board and Fellow ACA Members,
The February financial statements are presented herewith for your information. Please bear in mind these are not audited statements and may be subject to revision at a later date. This is the most accurate information our external accounting services provider has at this moment.
Treasurer’s Report
These financial statements are posted on the new ACA website at acawso.org. Click on Treasurer’s Report on the side menu.
Balance Sheet
Click here to view the February 2018 Balance Sheet
ACA WSO ended February with solid financial footing despite slightly lower literature sales than the preceding month. This was primarily due to decreased operating expenses and higher than expected 7th Tradition Contributions which also included a generous contribution from the fellowship in Finland through their intergroup. Another contributing factor was February being a short month so expenses related to wages were also down.
In reviewing the Balance Sheet we can see that WSO had Total Cash Assets of $397,280 which reflects and increase of cash of $9,750 from the prior month. WSO Inventory Assets were $121,016 and reflect an increase of $2,333. Combining the Cash and Inventory Assets for the period leaves WSO with Total Assets of $679,489 for an overall increase of $12,329 from the prior month.
WSO’s Liabilities decreased for the month by 30% to $29,462 and our Net Income rose to $33,792 leaving us with a Total Liabilities and Equity of $679,483 at the end of February.
Profit & Loss Statement
Click here to view the February 2018 Profit & Loss Statement
Looking at the P&L we can see February sales including Cost of Goods Sold (COGS) were $72,516, down 7% over January’s sales of $77,784. COGS was down 14% which left WSO with a Gross Profit of $52,531 before deducting expenses.
Fortunately, expenses related to literature sales were down. Freight was down 45% which may be understated as there could be more invoices coming in for February that will be added to this statement since we have converted to an accrual-based accounting method instead of cash based. Fulfillment expenses were also down 31%, but this is understated as we wait for end of month invoices from the fulfillment centers. As a result of the short month WSO payroll was down 34% from the prior month.
Overall Distribution Center expenses were down 32% at $35,212 compared to $52,109 the prior period. This left us with a net income for the publishing side of the organization of $17,319.
The Fellowship Services side of the ledger shows Total Income of $16,488 with $10,086 of that coming from 7th Tradition Contributions from members, groups, and intergroups with the balance coming from audio and e-book sales and one time royalties from foreign produced and sold ACA literature.
7th Tradition Contribution Report:
To see the 7th Tradition Contributions for February click the link below or on the 7th Traditions tab in the right-side menu of the acawso.org website.
Click here to view the 7th Tradition Contributions
Finance Committee Report
The Finance Committee continues to meet every Wednesday at noon via teleconference and work to improve our accounting and financial systems along with other matters pertinent to the financial well being of WSO. The committee worked this past month on numerous projects including reviewing the financial statements, accrual accounting, international bank account, vetting and recommending an external consultant to get our accounting and inventory management systems upgraded, and making recommendations to the board for modifications to the Fiscal Policy and Expense Reimbursement sections of the OPPM.
Feb 7th meeting:
The committee reviewed the financial statements with the external accountant in preparation for their distribution to the fellowship at the February 10th Board Teleconference. The committee also continued to discuss and formulate a recommendation to engage a consultant to assist WSO in upgrading its accounting and inventory management systems.
Feb 14th meeting:
The committee continued to define the scope of work for an external consultant and recommended the board solicit bid proposals. An update on what was required to open a bank that could provide international access without having a business presence in in a foreign country was given. We held a joint session with members of the Literature Executive Committee to discuss the various scenarios to print and distribute the Finnish Yellow Workbook. We also discussed revisions of the Fiscal Policies for the OPPM to bring them current with todays practices.
Feb 21st meeting:
The committee discussed the process to onboard the external consultant the board approved hiring and decided to ask her to sit on an upcoming Finance Committee meeting. An update for the 2nd financial audit was given to the committee by Audit Committee Chair Pat H. The committee also discussed and recommended a Fixed and Intangible Asset Expense Policy that was put forward by Pat H.
Feb 28th meeting:
The committee discussed the recently received Russian BRB royalty payment for 500 books published in Moscow last year and determined the royalty agreement had been paid in full. The committee also reviewed the draft of the Finance Committee’s report to the ABC prepared by Pat H. Lastly there was some discussion about the need for the revised chart of accounts before any accurate comparisons of actual versus budgeted income and expenses could be made. It was decided to hold off on mapping the budget to the current chart of accounts until after it was revised in 3 to 4 weeks.
If anyone has questions or comments about the Treasurer’s or Finance Committee’s reports, please feel free to contact me at [email protected].
With love and service,
Bill D., Treasurer and CFO
Chair, Finance Committee
