AMA News - Executive VP's Report

LAST MONTH I presented the Statements of Activities for your information. That is the accrual basis for determining the profit or loss of an operation. The accrual basis is where you account for all the items of income, whether they have been received or not, and for all expenses, whether or not they have been paid. This month the Statements of Cash Flows is presented for your consideration. It is a statement that shows the net results of the cash operations of the business. Under Operating Activities, you can see what the net changes were in the accounts listed. You will see that the Net Cash Provided by Operating Activities was $120,853 for the year 2001 compared to 51,760,741 for the year 2000. Under the Investing Activities, which is not shown at all on the Statements of Activities, you see where investments were made in property and equipment and where certain assets were sold and bought. This occurred mostly in the stock market where items were called or matured and then reinvested. Under Financing Activities, the receipt of the bond money we received during the past year is shown. Cash and Cash Equivalents show the balances as of the end of each year. The increase for the year 2001—even though there was a net asset decrease in operations—is caused by the receipt of the bond proceeds. As I write this, The Executive Council will meet this week and we will attempt to put a dollar amount on the increase that is needed in order to assure a sound fiscal policy for AMA. The optimist will call this the best of times; the pessimist is afraid he's right. Always Be Courteous.