The Financial State of the Union

Controller's Report

Volume CVII, No. 5May, 2007

Ira Goldman

I have been at Local 802 for ten months and have now pretty much experienced all that goes on with my job. The LM-2 tax filing was a learning experience, but we got it done timely and accurately.

When I started last June, I completed the tax filings and brought the accounting records up to date for the six-month audit. We also went to work on completing the 2006 budget, and although the six month figures from the audit were very good, we needed to anticipate the needs for the next six months to come. We therefore prepared our next six-month budget to reflect achievable revenue and expense numbers.

We had some concerns about payroll costs so we put a hold on the hiring of some positions to see first if we would achieve the goals set for 2006.

The next six months of 2006 turned out to be very good and enabled us to end the year favorably with a profit of $819,000 compared to a budgeted $52,000 loss.

Income at $6,057,000 was $452,000 better than budget mainly due to the following favorable items:

  • Annual dues better by $102,899;
  • Broadway better by $87,000;
  • Steady concerts better by $70,000;
  • Single concerts better by $44,000.

On the expense side, we budgeted for $5,658,000 and were favorable better by $419,000. The significant favorable items on the expense side were:

  • Salaries better by $130,000;
  • Benefits better by $93,000;
  • Electricity better by $22,000;
  • Fuel better by $10,000;
  • Telephone better by $16,000;
  • Repairs better by $13,000;
  • Conventions better by $22,000;
  • Seminars better by $20,000.

Favorable salary and benefits variances were directly attributable to the not filling of several positions. The telephone savings arose from replacement of the existing system to a new, more efficient system. Conventions and seminars were intentionally curtailed.

As we move forward in 2007, we continue to have significant concerns about payroll.

By filling the open positions and incurring a 3 percent increase, our salary and benefits for 2007 would be $4,130,000 as compared to the 2006 expense at $3,704,000 for an increase of $426,000 in expenses.

Although actual income was up in 2006 compared to the 2006 budget, we continue to budget income conservatively for 2007.

Overall the 2007 budget reflects a $70,000 surplus. The hope is that our income numbers will come in favorably and that our expenses will be monitored and controlled to come in under budget.

The board approved the second floor renovation for 2007. New carpet and furniture will be installed. The floor has also been painted. In addition we upgraded our computer hardware and software. There are also some repairs to the building that will also be made.

I look forward to continue working with President Landolfi and want to let you know that your union is in good hands.