Monday, December 11, 2006

The more you look at it, the less sense it makes

Every time this pip looks at the 2005 “Financial Report” and then compares it to the 2006 “financial Report” things looks curious and curiouser.

Let run the numbers.

First, INCOME FROM DUES.
2005
Income from dues............$7269
Divide that by........................../$25
.......................................(apx)290 members

2006 Income from dues................................ $5,592
Divide that by............................................../$25
........................................................(apx) 223 members

NOTE: in both cases, its likely that some members joined later in the year, and paid a pro-rated membership fee.

Well how many members are there?
Number of members listed in the 2006 members directory:
239 members--not 223.
(don’t believe me, pick up the Members Directory and count for yourself!)
Where are the dues from these 16 additional members? ($400!)

But wait, you might be saying, if a member joins mid year, they don’t pay a full $25. Right you are!

So let’s assume that at about 10% of the membership joined sometime other than January.
IF 10% of members paid a pro-rated members ship (let’s say on average $12.50--some paying more, some paying less, depending on when they joined.)

....239
-(10%)23
..........216 full ($25 dues) paying members.


...216 members
.*.$25
$5,400

.... 23 members
*$12.50 (at the mean pro-rated dues)
$287.50

$5,400.00
+ $287.50
$5,687.50 (income from Dues)

But the Financial report shows we “income from dues“ as $5,592, not $5,687.00
We are still missing moneys. (is $95 missing? or $400? or some other amount?)

So how did we arrive at $5,592?
How many members paid Full ($25 dues) and how many members paid less
(because of pro-rating?)
Who knows? (It's another secret!) but its hard to come up with any number of Full members and Pro-rated members that is equal to $5,592!

And Don't forget,
SOME MEMBERS ELECT NOT TO BE INCLUDED in Directory
So there very well might be more than 239 members!
(and Um, where is the income from their dues?)

At least 1 member joined at the Knit Out.

NOTE: anyone who joined that late in year, gets, in effect ‘free membership’ for last 3 months of the year.
(they receive a membership card good for remainder of 2006, and they are fully paid member for 2007)

Stuff like this, (income received in 2006, that really belongs in the 2007 ‘accounting’) is normally shown in separate area in a Treasurers Report.

Like wise, if the BAKG has once again gave a deposit of $100 for the 2007 retreat, that $100 should be NOTED but it is properly part of the 2007 EXPENSES, not the 2006 Expenses. (It’s not shown anywhere!)

An Accounting PLEASE!
One that follows the General Accepted Rules of ACCOUNTING.
Or explains why it doesn’t!

Then, INCOME From Workshops:

Income from Workshops in 2005 $1530
Expenses for Workshops in 2005 $2,118
5 workshop in 2005
Expense per workshop $323

Income from Workshops in 2006 $900
Expenses for Workshops in 2006 $721.
2 workshops (by November 2005)
Expense per workshop $360
Why do the workshops cost $40 more to run this year?
Does the income include money prepaid for Dec 2nd workshop?
Does the Expense include cost of December 2nd workshop?
Who knows? The (still secret) report doesn’t say.

Next Up, the CityPurls
Expense (6) City Purls, 2005 $3392
Where does this number come from? lets break it down.

Cost per issue
($3,392 /number of members (290) / number of issues (6) =
$3,392 /290 = $11.70
$11.70/6 = $1.95 per issue
................................Cost Per Issue= $1.95
.....................................--this cost includes postage.

Expenses for CityPurls 2006 $1,849
Cost per issue (based on the number of members from Dues income)
1,849/number of members (223)/number of issues(4)
1849 /223 = 8.29
8.29 /4 =2.07
................................Cost Per issue = $2.07
.....................................(again, postage inlcuded)

Cost per issue based on number of member from Directory count.
$1,849 /number of members (from Directory=239)/number of issues
1849/239= 7.74
7.74/4= $1.94
..................................Cost per Issue = $1.94
.....................................(Postage included)

(REMEMBER postage has gone up, so its seems natural that the cost per issue should go up too, (postage went from $0.60 per issue to $0.63 per issue)
Still what is the REAL NUMBER/COST?

............What are Printing Costs?
.......................Label costs?
...............................Mailing costs?
.........Total cost (either per mailing or Per issue?)

There should be someway of ‘figuring out” what the cost per issue is of Citypurls.
The numbers should actually be provided to members!

Especially since Madam President has made a point of handing out, rather than mailing a dozen or so issues of the CityPurls every issue.
(Where do we see these "savings"?)

ANOTHER THOUHT COMES TO MIND..
CityPurls is not a LETTER, it is NEWS.

NEW and MAGAZINES should be sent at MEDIA RATE, not FIRST CLASS MAIL RATE.

And since we have the ability to pre sort by ZIP CODE, we could be entitled to a discount for presorting the mailing. (this involves PRINTING the labels in zip code order, not someone hand sorting the mailing.)

Additionally, MOST (99.9% of Word Processing programs) will also print the USPS bar code on a label, too, and Mailers who preprinting this bar code can save on postage.
Preprinting the bar code is 3 simple steps when doing a mail merge to print the address labels.

SO WHY are we paying first class letter rate postage instead of MediaRate postage to mail the CityPurls?
If there is an interest "saving money" should we take basic steps first?

Media Rate is not available if you have paid advertising in the media, but the CityPurls does not sell ads. (It does provide, free, some promotional material of interest to members; like information on various bus trips, and LYS information--but this is allowed in Newsletters)
(check out the USPS web pages for details!)


Membership costs.
In 2005, these are $562 (for 290 members
In 2006, these are $789.32 (for 223 (or is it 239?)Members)

Well, fewer members any way you count them.
And $227 more in expenses!
What are these expenses?

And if a single mailing of the CityPurls cost about $2, (and all 3 sets of number are about $2) then the Member's Directory should cost about $2, too to print and mail.
223 * $2= $446

And the members cards?
They cost $.040 to mail (envelopes in bulk cost less than $0.01 +$0.39 in postage.)

Membership cost of are shown. $789 - $450 (lets round up the cost of Directory) =$339

Does printing up and mailing the membership cards cost $1.40?
($1 per card! +$0.40 postage?)

(NOTE also, 2005, with more members, the membership cost were $227 lower (for more members!
Wait, there was a postage increase this year!

Yes there was!

A $0.02 increase in postage cost is $2.00 per hundred members.
(or 250 (members) X $0.02 = $5 per mailing
10 mailing (10 meeting notices) =$50

So with fewer members (fewer $0.37 cents stamps) but Higher postage (that couldn’t exceed $50 for entire year,) our membership costs are sill significantly higher this year than last!

There still is the extra cost of $0.03 to mail the Members Directory
3X 223 is $6.60 or so. 3 X 239 is still under $7.25
That’s is at most, an extra $57.50 for this year.

So why are the cost so much higher this year?
There might be a valid reason for a $60 or so increase in membership administration costs.
But there is $277 increase! What is the over $200 going to provide?

Other
There still is the question of what the $403 Other expenses are for!

A Treasurer’s Report is suppose to make it easier to understand what the BAKG’s money is being spent on.

NOT harder!

Categories like Other should detail what the other expenses are, a list of other expenses (even if each expense isn’t accounted for in detail)

The issue of OTHER Expences, make this pip think--
What about Other INCOME?
Sometimes members, or non members (other guilds for example!) request a copy of City Purls.
HG noted that how she got her patterns “picked up” for the 2007 page a day calendar--a member of an other guild was also the editor of the calendar and she had seen the patterns in the CityPurls (Jul/Aug issue)
If a non member wants a copy of CityPurls, we charge them $2 an issue.
Where is that “other” income recorded? (NO WHERE!)

It might not be very much (Other Income $10.00) but shouldn’t it at least be noted?

Madam President is claiming the PIP is "just making these numbers up"
Well, resolve that, Madam President and Madam Treasurer.
--Provide the members (as called for in the By-Laws) with a Treasurers Report.

It was due to members at "annual meeting" (the Luncheon) in September
It wasn't available at the October Meeting
It was promised to members at November Meeting
It still wasn't available at the December Meeting.
No one this Pip knows has recieved on.

We are still waiting.
(your "2 weeks" has come and gone, and other 2 weeks!)
Will the Members EVER see one? ever again?

It's time to call for an AUDIT. (the By-Laws permit that.)
So members find out what your money is being used for.
DEMAND an AUDIT.

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