Budget & Finance Committee Presentation to General

AssemblyBudget and Finance Committee

March 13, 2021

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Outline

• Committee Charge• Budget & Finance Committee Members• 2022 Proposed ROA Budget-Bottom Line up

Front• An In-depth Look at the Proposed Budget• 2022, 2021, and 2020 Budget Comparisons-

Operations & Non- Operations• 2022, 2021, and 2020 Budget Comparisons- Net

Income• Loss of Revenues• Financial Pluses• The Pandemic• ROA Budget Items• Current Recommendations

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Com

mitt

ee C

harg

e• Ensure the budget process is executed in a

manner that will protect the assets of the Association, provide reasonable operating funds and balance expenditures with income. Provide a proposed budget and advice to the Executive Committee

• Continue a two-year forward budget process using realistic projections for income/expense

• Ensure that budget information, especially proposes changes are depicted and explained so as to be easily understood throughout the process. Strive to simplify the entire budget process.

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Budget & Finance Committee Members

• LTC Hazel L. Robinson, Chairman, USA (Ret.)• COL Marco A. Marin, Vice Chairman USA (Ret.)• CAPT Robert H. Carmack, USCG (Ret.)• Col. Scott Russell, USAFR• Ms. Barbara Stoddard• CMSgt Shane Smith, USAFR –Special appointee/Term of President• Lt. Col Layne R, Wroblewski, USAFR-Ex-Officio- Treasurer (w/o vote)• Lt. Col. Donald L. Stockton, USAFR, ExCom Liaison (w/o vote)• CAPT Rafael A. Ortiz, USCG (Ret.)- Department National Council

Member Liaison and USCG (Ret.)• Lani M. Burnett- Staff Liaison

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2022 Proposed ROA BudgetBottom Line

• Approved by EXCOM• Budget is not balanced• B&F Committee feels that

we have cut expenses to the very bone. If we start cutting more, we will cut programs and people. We can start managing our cash flow better

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AN INDEPTH LOOK AT THE PROPOSED BUDGET

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2022, 2021, and 2020 Budget Comparisons-Operations & Non- Operations

Category Proposed FY 22Budget

FY 21 (9+3) Forecast FY 20 Audited & Actual

Total Revenues $2,422,564 $2,140,290 $2,839,289Total Expenses $2,702,406 $2,667,312 $3,050,890

Net Income $279,842 $527,022 $211,601

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OPERATIONS

Category Proposed FY 22 Budget

FY 21 (9+3) Forecast FY20 Audited & Actual

Total Revenues $496,841 $568,912 $518,469Total Expenses $303,373 $313,177 $398,757Net Income $193,468 $255,735 $119,711

NON-OPERATIONS

2022, 2021, and 2020 Budget Comparisons –Total Net Change

• TOTAL NET INCOME• (Net Change in Net Assets)

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Category Proposed FY 22Budget

FY 21 (9+3) Forecast

FY 20 Audited & Actual

Total Net IncomeOperations

$279,842 $527,022 $211,601

Total Net Income-Non-Operations

$193,468 $255,735 $119,711

Total Net Income

$86,374 $271,287 $91,890

Loss of Revenues

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Top of the Hill

$769K Approved in 2021

$36K Actual Revenue in 2021

$0 in FY 22 Proposed Budget

Financial Pluses

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Would have been worse if we had not made the $260K draw from our contingency Fund

President received $44K from Departments & Individuals to publish a second edition of the Reserve Voice

STARS Foundation – Second Century Campaign

Reduces expenses by $570,754

Budget & Finance Committee “The Pandemic”

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AFTER THE ONSET OF THE PANDEMIC…… WE

BEGAN

MEETING MONTHLY STARTING IN JUNE AND

THEN JULY

RECOMMENDED SEVERAL DRAWS TO

COVER EXPENSES

REDUCE EXPENSES

Budget & Finance CommitteeCurrent Recommendations

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Recommendation #1 to the EXCOM to approve the revised budget

• As long as the EXCOM apply for a PPP loan of about $135,000• Terms – 5 years @ 1% interest

• And apply for the EIDL Loan• 30 Years @ 2.75%

Recommendation #2 to the EXCOM that the $6,900 mortgage payment be deferred for 6 months, but add missed payments to the end of the mortgage

Curr

ent

Reco

mm

enda

tions • Postponing the loan payment for

6 month, giving us a final payout date of 9/1/2047, and not changing the loan terms gives us an operational expense savings of $13,159.22. This also reduces interest income in non-operations Memorial Endowment by $13,159.22

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QUESTIONS

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