World Aquaculture Society
Mid-year Board Meeting
Treasurer's Report
Sydney, Australia
September 25, 2004
The WAS fiscal year begins each April 1 and ends March 31. WAS uses the "cash based accounting" system for recording finances, that is, revenues are recorded as they are received and expenses are recorded as they are paid. An overview of current financial status is presented in the Home Office report and the financial statements for August 2004 are included in the meeting package.
2003-2004 Fiscal Year
The 2003-2004 audit is complete and there were no exceptions noted by our auditor T. A. Harris, Inc.. The Home Office has completed and filed the necessary US Internal Revenue Tax forms. A copy of the audit is included in the financial package.
A copy of the "Treasurer's Report" for the WAS membership is attached for review and approval by the Board prior to publishing it in the WA Magazine.
Motion: To approve the 2003-04 Treasurer's Report for the WAS membership.
2004-2005 Fiscal Year
The budget for the current fiscal year is mostly on track, except for a few significant deviations, especially related to the AQUA '04 conference (to be discussed elsewhere during the meeting). Hence, since the initial approval of the budget, there have been some additional sources of revenue identified and several new expenses realised. A revised budget is presented for Board approval. It should be noted that the revised budget has a net of -$76,051. All efforts to reduce expenses and or secure new revenue should be undertaken during the remainder of the fiscal year.
Motion: To approve the revised budget for 2004-2005.
All meeting budgets appear on track as well.
Cash flow requirements in the Home Office hastened the withdrawal of funds from the money market accounts and cashing a mature CD (see below).
Investments
There has been a significant recovery in our mutual funds over the last one to two years, almost to the point of their original cost in some mutual funds and now exceeding the original value in some others. Approximately $41,000 is held in an Alliance mutual fund that has been performing weakly. A financial advisor at Merril Lynch (where are mutual funds are held) is recommending transferring $25,000 out of Alliance in the American Mutual Fund, which is a more balanced and diversified fund and has had a better recent track record of performing. No other action is recommended at this point in time.
Motion: To approve transfer of $25,000 from Alliance Mutual to American Mutual.
A CD valued at $15,463 came due and was deposited into the Home Office bank account to assist with cash flow. As well an amount of $12,421 was withdrawn from our Merrill Lynch Money Market Account (CMA) and an amount of $20,000 was withdrawn from the Bank One money market account (MMA), both to assist Home Office with cash flow for this fiscal year.
Long-term Analysis
I have managed with the assistance of Carol and others in the past (e.g., Joe Tomasso and Craig Browdy) to put together a long-term financial summary of WAS in several areas, including a summary from the audited financial statements, annual budget, conferences, and investments. Based on figures since 1995, our net assets have increased up to about 2000, then have remained relatively stable. As well, under the summary of the annual budgets, I have plotted the long-term patterns for the different budget areas. This shows the areas of stability and variability in the various revenue and expense centres over the last several years.
Respectfully submitted,
G. Jay Parsons
WAS Treasurer
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