The story behind the numbers

Controller's Report

Volume 117, No. 6June, 2017

Cathy Camiolo

For the 12-month period from Jan. 1, 2016 to Dec. 31, 2016, Local 802 realized a loss of $28,279. When comparing the loss of $28,279 in 2016 with the loss of $24,761 in 2015, there is only a slight increase of $3,518. This is a result of an increase in total revenue from 2015 to 2016 of $245,212, which is offset by a nearly identical increase in expenses of $248,730. The increase in total revenue is attributable to both an estate donation to the union as well as an increase in unrealized gains on investments. Local 802 was bequeathed $103,865 from Edward M. Goldsmith, which was a one-time donation and cannot be relied upon in future years. There was an unrealized gain of $32,075, which is an increase of $132,704 when comparing 2015 to 2016. Investment income also recognized a gain of $21,074, which resulted in a total investment gain of $53,149 in 2016. Both the unrealized gain of $32,075 and the donation from Goldsmith of $103,865 were attributable to the increase in revenue of $245,212 from 2015 to 2016.

Although revenue increased quite significantly, expenses also increased by $248,730. The most significant change from 2015 to 2016 were in personnel expenses, which increased by $221,660. This is attributable to several vacant positions being filled, as well as some departments expanding to take on numerous internal and external initiatives. The union hopes these initiatives will create new revenue streams in upcoming years. Although it appears building expenses increased by over $100,000, this is actually due to a change in the allocation of some expenses between building, office and general. If the change in these three expenses are aggregated, the difference essentially zeroes out.

Every year I meet with the three officers to create a budget that we believe will reflect the upcoming year’s revenues and expenses. The expenses are easier to predict, since for the most part they are fairly consistent from year to year; however, the revenue portion of the budget can be much trickier. Since revenue has been mostly consistent from year to year, Local 802 hopes to trim expenses in 2017 and close the upcoming year with a gain.

Cathy Camiolo is Local 802’s controller.