I would like to start by introducing myself. I began work this June at Local 802. I have over 25 years of experience working in public accounting and as a controller. The past three months, I have worked on preparing and completing the 2006 budget. In addition, the six month financial report and audit have been completed as well as the July and August 2006 financial reports. The budget process for 2007 has begun and we will be working on this for the next few months.
The 2006 budget projects a budgeted loss of $52,740. However, some favorable things have occurred year-to-date through August 2006 that give us better than anticipated result for 2006.
The August 2006 financial report reflects a $476,646 gain versus a budgeted $264,046 gain. The $212,600 positive over budget is due to total income being $136,919 above budget primarily due to the following items being at favorable compared to budget: work dues by $43,042 and other income by $52,570.
On the expense side, we are $75,680 under budget. Seminars are $12,616 under budget, office expenses are $52,040 under budget and general expenses are $11,783 under budget. At this point, we are optimistic about finishing with a positive bottom line.
There is still some concern about the budgeted income holding up through the remaining four months of the year and maintaining the expenses within the projected budget. The four months remaining in 2006 calls for a budgeted loss of $317,000 primarily due to declining incomes from September to December and increased expenses in payroll and benefits, in which, some positions are budgeted but still remain unfilled.
As an organization, we face many challenges to get us to a balanced 2007 budget. Payroll and benefits are about $280,000 more than 2006, which in 2007 is a 7.13 percent increase over 2006. This is attributable to two factors: 3 percent due to raises and 4.13 percent due to increased personnel in 2007 over 2006.
In 2006 we had several unfilled positions filled in the latter part of 2006. Thus these positions were not for all 12 months in 2006.
In budgeting for 2007, we hope to fill these positions for the entire year of 2007, raising the payroll 4.13 percent.
This is of great concern because income will not offset this increase in expenses. I am working with the officers in exploring creative ways to do more with less.
Thank you for this opportunity, and I will do my best to see to it that Local 802 prospers.