For the period Jan. 1, 2011 through Dec. 31, 2011, Local 802 realized a loss of $157,666.
The loss is attributable to several factors which include:
Implementation of a new cash receipt process
Increased legal costs
Support of Emergency Relief Fund publicity and fundraising
During the second half of 2011 a new cash receipt process was implemented. The transition from the old system to the new system caused a delay in the processing of work dues, and aided in the $313,147 decrease in work dues in 2011 when compared to 2010. The change in systems was necessary to provide greater accuracy when recording work dues payments, which will result in a clearer picture of the actual revenue generated from work dues going forward.
Total legal fees increased from $209,183 (in 2010) to $305,936 (in 2011). This $96,753 increase, which is 46 percent higher when compared to 2010, is the result of lengthy and intense contract negotiations that occurred in 2011.
Local 802 also incurred expenses relating to supporting the publicity and fundraising for the Emergency Relief Fund gala, which took place on Dec. 4, 2011. The total amount of expenses that were funded by Local 802 amounted to $48,291. The gala was necessary to increase fundraising for the Emergency Relief Fund, which is a not-for-profit organization that aids musicians who have fallen into hard times. The gala was necessary to ensure the Emergency Relief Fund’s survival by increasing awareness which will ultimately increase charitable contributions.
Although Local 802 suffered a loss, it is important to note that our net cash has increased in 2011 by $568,867 when compared to the decrease in 2010. Total current assets remain much higher than current liabilities, which indicates Local 802’s ability to pay its obligations. With the new cash receipt system in place and several lengthy collective bargaining agreements behind us, Local 802 is optimistic 2012 will prove to be a better year.