Local 802 makes gain in first six months of 2015

Controller's Report

Volume 115, No. 11November, 2015

Cathy Camiolo

For the six-month period ended June 30, 2015, Local 802 realized a gain of $42,945. The audited financial statements for the six-month period appear in the printed issue of Allegro starting on page 37.

The Statement of Activities reflects little change in total revenue when comparing 2014 to 2015, with only a slight decrease of $67,794. This is mostly attributable to investments, which decreased by $65,201 from 2014 to 2015 when combining both unrealized and realized gains and losses. Although investments decreased in 2015, they still reflect a gain of $14,131 when combining the realized gain of $42,117 and the unrealized loss of $27,986. Investments also account for the $53,650 interest and dividend revenue, which was slightly higher in 2015 when compared to 2014.

Total expenses have increased by 5 percent from 2014 to 2015, which is mostly related to the increase in personnel costs of $132,107. The components of this cost can be found in the Supplemental Notes to the Financial Statements, Consolidated Schedule of Expenses on pages 40 and 41. The Consolidated Schedule of Expenses shows an increase in payroll expense from 2014 to 2015 of $1,740,187 to $1,837,605, respectively, which is attributable to a couple of factors. The first half of 2015 had an additional pay period, which will even out by year end because both 2014 and 2015 have a total of 52 pay periods. The increase is also a result of some open staff positions in 2014 that were filled in 2015. Finally, severance expense increased to $39,834 in 2015. This is because severance vests for an officer after he or she has worked at Local 802 for five years, and one of the officers has now completed five years of service at the union. Severance expense will decrease in 2016 because the five prior years as well as the current year severance pay are expensed when severance vested in 2015; 2016 will only account for the severance pay accrued for that year.

Local 802 hopes to maintain the mid-year gain, and end 2015 on a positive note. Although salary expense has increased, this is mostly attributable to a timing difference when compared to 2014 and should even out by year end. Local 802 hopes to finish 2015 with the same gain we have achieved for the six-month period ended June 30, 2015.