Dear Board and Fellow ACA Members,
The March 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 MARCH 2018 BALANCE SHEET
ACA WSO ended March with a 2% increase in Total Liabilities and Equity from the previous month despite lower than expected literature sales. This was primarily due to registration payments for the upcoming 2018 ABC AWC in Toronto and slightly higher than normal 7th Tradition Contributions which also included a very generous contribution from a member in Florida.
In reviewing the Balance Sheet we can see that WSO had Total Cash Assets of $420,636 which reflects and increase of cash of $21,190 from the prior month. WSO Inventory Assets were $106,254 and reflect a decrease of $11,700 over the previous period. Combining the Cash and Inventory Assets for the period leaves WSO with Total Assets of $672,960 for an overall increase of $12,033 from the prior month.
WSO’s Liabilities increased for the month by 35% to $49,272 and our Net Income decreased slightly to $30,380 leaving us with a Total Liabilities and Equity of $672,960 at the end of March.
Profit & Loss Statement
CLICK HERE TO VIEW THE MARCH 2018 PROFIT & LOSS STATEMENT
Looking at the P&L we can see March sales not including Cost of Goods Sold (COGS) were $64,772, down 13% over February’s sales of $74,685. COGS was down 20% which left WSO with a Gross Profit of $48,293 before deducting expenses.
Expenses related to literature sales were about flat compared to the prior month resulting in a difference of less than $150. We accrued estimated Ware Pak charges as there are outstanding invoices for the last part of March that won't be paid until after the 15th of April. They will be inserted into this statement in place of the estimated charges once they are received. As a result of the extra pay period in the month and new employees, WSO payroll was up 34% from the prior month.
Overall Distribution Center expenses were up 10% at $44,192 compared to $40,130 the prior period. This left us with a net income for the publishing side of the organization of only $4,101.
The Fellowship Services side of the ledger shows Total Income of $13,079 with $9,463 of that coming from 7th Tradition Contributions from members, groups, and intergroups. The balance came from audio and e-book sales. No royalties were received this month for international literature sold.
Expenses for the month were $9,526 higher than last month due to planned payments to the auditors and the consultant overhauling our accounting and inventory management systems.
This left WSO with a net loss for the month of $755.
7th Tradition Contribution Report:
To see the 7th Tradition Contributions for March 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 meets every Wednesday (unless a meeting is postponed due to conflicts in the volunteers' schedules) 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.
Mar 7th meeting:
The committee reviewed the financial statements with the external accountant in preparation for their distribution to the fellowship at the March 10th Board Teleconference. The committee was introduced to and reviewed the scope of work of the consultant hired to assist WSO in upgrading its accounting and inventory management systems. The committee also discussed the year end report for the ABC and received an update on the audit currently being performed.
Mar 14th meeting:
The committee continued to refine the finance annual report and receive updates on the progress of the external accounting consultant and the audit. The committee discussed and adopted an asset valuation policy to forward to the Board of Trustees for approval.
Mar 21st meeting:
The committee received updates about the audit and external consultant's progress to date. Interviews were conducted with all persons involved in the WSO accounting area.
Mar 28th meeting:
The committee discussed the quotes received to prepare the 2017 990 Federal Tax Return and recommended we use Wilshire Financial Services again this year. The Finance Committee will make this recommendation to the board during its next meeting. The committee also reviewed the auditors' spreadsheet titled "Sales, COS, and GP Analysis" and provided feedback to the auditors though the Audit Committee chair.
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
