2005 Financial Report

Don · Post by **Don** » Mon Mar 13, 2006 1:59 pm

Just looked over the 2005 Financial Report and have a few questions. Anyone on the Board like to explain? Inquiring Mind(s) would like to know.

First - How can "Total Cash" increase by $13,918 during the year when Income was less than Expense by $2,207? Where did the $16,125 come from.

Second - how exactly does the glider storage function work ? Why isn't it included in the financials? Who "owns" the boxes? and what are "storage management fees"?

Third - Membership - Initiation - I thought inititation was $100. If so, how does 19 new members equal $1,650 ?

Fourth - Membership Fees - I thought annual membership was $60. If so, 169 pilots paid in 2005 should equal $10,140

Fifth - Poppy Seed Donation - Was this a Club activity? I thought it was a personal project of one of the Club's members.

jsc1959 · Post by **jsc1959** » Mon Mar 13, 2006 4:26 pm

Ill bet you looked at this from work DON! Dont you know your not supposed to mix business with pleasure.....lol

Jeff

Don · Post by **Don** » Tue Mar 14, 2006 7:30 am

Of course I looked at the financial report at work - first, because this is what I do for a living; second, because I'm too cheap to have internet access at home! I would rather spend my money at Windsports!

Post by **Ken Andrews** » Fri Mar 17, 2006 9:36 pm

Don,

It's great to see that you're reading the financial report, and you've asked some excellent questions.

First, the storage box costs weren't in the financial statement on the website because I accidentally dropped the last few lines when formatting and posting it. I'm very sorry, and a corrected version is now in its place. Thanks for catching the omission.

First - How can "Total Cash" increase by $13,918 during the year when Income was less than Expense by $2,207? Where did the $16,125 come from.

Before the SHGA had the glider storage boxes, our income was primarily from annual membership dues. This had to cover our expenses, primarily property maintenance, water, insurance, and the newsletter. Keeping that budget balanced has always been a challenge, and long-time members will remember some tough debates about raising dues and about initiation fees. By the same accounting, SHGA expenses continue to exceed income by $2,207 as you note.

Thankfully, we've got two storage boxes now, both almost completely full. It is this income that keeps the SHGA financially sound, and that has increased our assets this year. When we got the storage boxes, the intent was that the rental income would cover large one-time expenses, and pay for capital investments. These include the wash repair we did after the floods a year ago, and potential projects such as expanding the gazebo, and filing for a Conditional Use Permit (which may eventually be necessary to preserve our flying site, a long discussion in itself). In practice, some of the storage box income is used for such projects, some is saved for the next big expense, and some is used to cover the shortfall between dues and normal operating expenses.

Said differently, members who don't store gliders in the LZ are getting more than what their dues pay for; they are being subsidized by those who rent storage spaces. Is this fair? In a sense it is, because there are more alternatives to renting glider storage than there are for paying membership dues. Members recognize this, since there would be an outcry if dues were increased, while few object to the cost of glider storage.

Second - how exactly does the glider storage function work ? Why isn't it included in the financials? Who "owns" the boxes? and what are "storage management fees"?

The storage boxes are owned by the SHGA. Managing them requires a lot of work: renting spaces, mailing invoices, collecting and depositing checks, harassing the deadbeats, maintaining all the records, extracting the occasional dead animal, patching leaks, and on and on. Through a bid and proposal process two years ago, the SHGA selected member Jay Devorak to do all this, in exchange for a percentage of the income. Jay also volunteers as the membership manager, and even attends the monthly board meetings!

Third - Membership - Initiation - I thought inititation was $100. If so, how does 19 new members equal $1,650 ?

The initiation fee can be paid in installments, to reduce the burden on new pilots. Some years the SHGA collects a little more, some years a little less.

Fourth - Membership Fees - I thought annual membership was $60. If so, 169 pilots paid in 2005 should equal $10,140

Some members were overdue and paid back debts, a couple have paid more than a year into the future. We made a particular effort last year to get expired members to renew, and it was very successful.

Fifth - Poppy Seed Donation - Was this a Club activity? I thought it was a personal project of one of the Club's members.

The SHGA is holding the funds for this project, to buy more poppy seeds in the fall. Maintaining the financial records is one way the club is helping to support this project.

-Ken

Don · Post by **Don** » Tue Mar 21, 2006 8:03 am

Thanks for the update. Much appreciated.