Some one-time factors explain our $24K loss

Controller's Report

Volume 116, No. 5May, 2016

Cathy Camiolo

For the 12-month period ended Dec. 31, 2015, Local 802 realized a loss of $24,761. The audited financial statements appear in the printed issue of the May 2016 Allegro.

The Statement of Activities is relatively consistent when comparing 2014 to 2015, with only a few notable changes. Personnel expenses have increased by 8 percent from 2014 to 2015. The increase is a result of some employee vacancies in 2014 that were filled in 2015, as well as an increase in severance expense. Severance is offered to officers of the union after an officer has been in employed or in office for at least five years. Officers are given severance because they are forced to stop playing as a musician when they are elected, which can lead to serious financial repercussions when they leave office. Severance is awarded to ensure the officer will not face financial hardship upon termination as an officer.

General expenses increased from $414,236 in 2014 to $466,284 in 2015. This is mostly attributable to the AFM Eastern Conference being held in New York and hosted by Local 802 this past October 2015. Also, realized gains on the sale of investments as well as unrealized gains and losses on investments both decreased in 2015. Local 802 invests very conservatively, which can sometimes result in a slight loss every three years or so. The union plans to continue investing conservatively since it has proven to yield mostly positive results.

Although 2015 ended with a slight loss, it is nothing to be concerned about because revenue and expenses remained relatively consistent with 2014. It is important to note 2014 ended with a substantial gain of $408,073, which more than makes up for the slight loss of $24,761 in 2015.