Executive Vice President - 2006/07
Doug Holland [email protected]
Audit report and availability
We have the new comparative audit report for the year ended December 31, 2005. The entire report is presented on the AMA Web site.
I will make comments on specific sections on a monthly basis. If you wish to discuss or have more information about certain items, please call me.
Cash balance and timing
The cash balance at the end of 2005 was somewhat lower than at December 31, 2004. The good news is that money was in process and, within a few days of the close of the year, the balance was almost equal to the balance at the end of 2004.
This is a common situation because of various timing issues that affect the receipt of money.
Investments, assets, and liabilities
The comparison reflects an increase in investments of approximately $313,000 from 2004. With the write-off of property and equipment and depreciation, the net balance is slightly lower and the assets are roughly the same. Current liabilities are $386,000 lower than they were a year ago.
Some people pay for two-year memberships; the Deferred Membership Revenue represents this money for membership dues in 2007. Deferred Royalties are from credit card programs that offer incentives paid to AMA prior to when they are earned.
Operating results and membership
Operating expenses exceeded income for 2005 and therefore there is a reduction in net assets from $9,698,259 at the end of 2004 to $9,214,399 for the year 2005. This is primarily caused by the drop in memberships.
AMA's financial position is quite strong, but we need every member to recruit new members. I hope you will consider it a privilege to share what we have with other people at every opportunity.
Thought for the day
When you think about it, you might as well go along with the optimists. Even if they are right, it is going to be a tough road.
A-B-C: Always Be Courteous.
Until later ... Doug Holland
Transcribed from original scans by AI. Minor OCR errors may remain.
