We have just completed the six-month audit for 2009, which shows a decrease in net assets of $17,124.
Income has decreased almost $450,000 from the revenues as of June 30, 2008 due to the 2008-2009 economy. Expenses have also been reduced and are kept under tight controls. Spending continues to be carefully monitored in this economy. We also have lost three employees and have consolidated these duties to others and reduced both payroll and benefit costs.
The economy has been very tough over the last six months. It has affected the jobs of Local 802 musicians and the union as a consequence. There is considerable concern for the next six months as the economy remains uncertain and revenue continues to fall. So far, we held our own through August but some difficult months are ahead of us.
During the last quarter of this year, we are implementing a new computer system, which will cost $285,000. It was absolutely necessary to replace our old antiquated system. The accounting and membership departments will be implementing new systems that will help us be more efficient such as an integrated accounts receivable system in 2010. Finally, we are also working on a new LM-2 reporting system.
The cost of staff medical benefits continues to rise for 802, like all other employers. Both 802 and staff members are sharing those increased costs.
Right now, we are focusing on the 2010 budget and how the economy could impact us. We are concerned with jobs for musicians and the dues generated in this economy. Every cost is reviewed and determined whether or not it is necessary.
In the past three years, since I have been working at Local 802, we have always maintained a surplus. This economy has made that almost impossible. We will continue to try and do this but face tough obstacles.
I can assure you that the financial issues are being addressed and we are working to continue to meet the needs of Local 802.