Small factors added up to union’s loss in 2013

Controller's Report

Volume 114, No. 5May, 2014

Cathy Camiolo
Cathy Camiolo

Cathy Camiolo

From Jan. 1, 2013 to Dec. 31, 2013, Local 802 realized a loss of $99,591. The audited financial statements for this 12-month period appear beginning on page 40 of the printed issue.

The Statement of Activities is relatively consistent when comparing 2012 to 2013, with only a few notable changes. Office expenses have increased by 25 percent, increasing $83,800 from 2012 to 2013. As mentioned in the June 2013 article, this is attributable to two major expenses. The first is our emergency water line service, which was required and accounted for close to $16,000 of the increase. Another significant expense was the cleaning of the air conditioning and heating ducts in the building, which cost approximately $32,000. The remainder of the office expense increase is a result of several miscellaneous costs that were related to general repairs and maintenance of the building. The income generated from the rental of the building showed a slight decrease from $175,201 in 2012 to $152,450 in 2013. Several of the building leases expired in 2013, resulting in a transition period between leases and one vacant office space. The office space is now in use and there is an expected increase in 2014 rental income. Journal advertising has also declined 39 percent, from $78,799 in 2012 to $47,794 in 2013. This is simply related to the Local 802 directory, which is only printed every other year and generates income through advertising. Next year we anticipate an increase in journal advertising revenue as a result of the publication of the 2014-2015 directory.

The investment revenue this year was $110,359, which is comprised of a realized gain of $79,237 and an unrealized gain of $31,122. Although the investments reflect a gain, total revenue is down by 2 percent, decreasing by $139,668 from 2012 to 2013. Total expenses have increased by 4 percent from 2012 to 2013, which is a total increase of $221,514. The slight decrease in revenue, coupled with the increase in expenses, resulted in the loss for 2013.