Our Union’s Finances are Stable

Financial Vice President's Report

Volume 118, No. 6June, 2018

Tom Olcott

Tom Olcott is the financial vice president of Local 802, and the supervisor of the union’s concert department.

One of my duties as financial vice president is to assist in the production of the annual audit of the local’s finances and to report the results to the membership. The latest audit was recently completed and reviewed by our accountants, Gould, Kobrick & Schlapp, PC. Their report is published in the printed issue of Allegro starting on page 35. Bear in mind that this is a snapshot of Local 802’s finances as of Dec. 31, 2017. The Local 802 officers and the controller meet several times each year to create a budget. We always consider many factors. The most important are: 1) Our best assessment of the state of the music business and the projected flow of dues revenues; 2) A reasonable estimation of future union costs (upcoming negotiations, organizing campaigns, public relations and legal needs, personnel costs, building maintenance, etc.), based on prior experience; 3) Close observation of prior trends in our budgeting. Our primary goal is always to ensure that Local 802 members’ money is spent responsibly.

Compared to 2016, dues revenues declined by $8,248, with minor slippage in both regular and work dues. This is similar to the decline from 2015 to 2016. That seems to be a steady non-accelerating decline. Rental income increased by $8,294 as annual increases built into the leases accrued. Assuming the lessees remain solvent – and all are quite healthy – that income will steadily increase. Our investments managed by Morgan Stanley benefitted by the positive stock market and investment climate in 2017 and showed an increase in “fair market value” of $353,658 compared with 2016. Unrestricted net assets declined by less than 2 percent compared to 2016. That decline is primarily due to declines in depreciation values as assets age.

Local 802’s finances are stable, but we, like the rest of the world, are always subject to increasing expenses generally and the unpredictable investment and political environment. We acknowledge the need to be observant and prudent going forward.

Local 802 will always seek to take advantage of any new employment opportunities and to consolidate and protect current employment. We all need to unite in support of fair conditions and benefits as compensation for those opportunities. That has always been our pledge, and these audit numbers confirm 802’s real ability to continue that commitment in uncertain times. As we proceed, please remember that members are the union, and that our unity is our greatest strength. Best to all.