[Lnc-business] scheduling an LNC budget review session

Fri Nov 28 19:39:06 EST 2014

You are correct that the $75,000 Capital Expeses incorporates $60,000 to pay down the principal on the mortgage plus $15,000 for other capital expenses, such as IT. The $10,402.33 deficit takes into account the $75,000 for capital expenses. When calculating the Unrestricted Operating Surplus (or Deficit), we did not include the Legal Offense Fund and the Campus Outreach Fund since these are projects with their own restricted funds, and we did not allocated unrestricted moneys to go into these funds next year. The calculation on the Acct Detail sheet, with the row numbers, is:

196 Net Revenue or Loss:                 61,597.67
 52 Legal Offense Fund:                     -8,900.00
132 Project-Related Expenses:         11,900.00
205 Capital Expenses & Mortgage:  -75,000.00
__________________________________________
204 Unrestricted Operating Surplus: -10,402.33

Tim Hagan

________________________________
 From: Daniel Wiener <wiener at alum.mit.edu>
To: Tim Hagan <timhagan-tyr at yahoo.com>; "lnc-business at hq.lp.org" <lnc-business at hq.lp.org> 
Sent: Friday, November 28, 2014 11:42 AM
Subject: Re: [Lnc-business] scheduling an LNC budget review session

We have a revenue line item "4108 - Building Fund" of $67,300 which represents the amount of money we need to raise (including fund-raising costs) to satisfy the Policy Manual requirement of paying down the principal on the mortgage by at least $60,000 during off-election years.  All well and good.  But I don't see any corresponding line item expenditure in the budget beyond the $7,300 (in "7085 - Building Fund Fundraising Exp") to account for the $60,000 mortgage pay-down.  I assume that the $60,000 is incorporated into the $75,000 which is listed at the bottom of the spreadsheet as "Capital Expenditures plus Release to pay off Mortgage" (with the other $15,000 being the non-interest portion of our monthly mortgage) because accounting-wise it is a capital expenditure rather than a normal budget item.  However, we are still going to have to spend that $75,000, and the $10,402.33 projected Unrestricted Operating Deficit does not include it.  So from a
 cash-flow perspective we are actually looking at a $85,402.33 hole for 2015.  Am I missing something?

Dan Wiener

On Fri, Nov 28, 2014 at 9:37 AM, Tim Hagan <timhagan-tyr at yahoo.com> wrote:

The draft budget is attached. As you can see on the bottom of the Operating Budget sheet, this budget is has a deficit of $10,402, so we will need to make decisions on where to put our resources. The numbers in the Operating Budget sheet come from the Acct Detail sheet. Comparisons to the last two off years (2011 and 2013) and to this year are included. The bottom of the Acct Detail sheet has notes explaining the numbers.
>
>The budget expects the Chair and the Executive Director to solicit $20,000 each, with the rest of the LNC also raising $20,000.
>
>Administrative costs (number 40) are reduced due to savings from the building purchase. The actual Office expenses for next year
 are shown in the Office Exps sheet, copied to 8170-Total Occupancy & Related on the Acct Detail sheet.
>
>Compensation is based on the salaries and benefits for 2014, including the last salaries for the Receptionist and LP News Editor positions that became open this year. The budget does not include the potential of $25,000 for staff bonuses, which depend on meeting revenue goals.
>
>$15,000 was budgeted for Affiliate support.
>
>We budgeted $5000 for candidate training such as the Who’s driving educational program.
>
>The Campus Support fund has $3287 in it, so we budgeted $3000 for campus support.
>
>We budgeted $5000 for Initiatives Campaign support.
>
>The number of LP News issues is back to four per year,
 which is the same as the last two off years. Each LP New issues costs $8600.
>
>Per the Policy Manual, $60,000 is to be raised for the Building Fund to pay down the principle on the office mortgage.
>
>Capital expenses gets $15,000, which includes IT.
>
>There is a possibility of getting the maximum annual allowable ($32,400 plus the inflation adjustment) from a bequest. This is not finalized, so we did not include the amount in the budget.
>
>Tim Hagan
>
>
>
>
>________________________________
> From: Alicia Mattson <agmattson at gmail.com>
>To: lnc-business <lnc-business at lp.org> 
>Sent: Tuesday, November 25, 2014 12:27 PM
>Subject: [Lnc-business] scheduling an LNC budget review session
> 
>
>
>The Executive Committee has reviewed and made some adjustments to the draft budget.
>
>You may recall that in the September LNC meeting in Alexandria, we adopted a motion, "that the
LNC have an informal conference approximately 2 weeks prior to the December
session in order to review the draft budget to be proposed at that session."
>
>In terms of scheduling a time for this review, Robert Kraus will be off work following the Thanksgiving holiday until December 2nd, and we need him to be available to field questions during this review.
>
>The current proposed time to have a budget review with the full LNC is December 3rd at 9pm Eastern / 6pm Pacific.
>
>How well does that proposed schedule work for the rest of the LNC?  Please respond to let us know if you would be available then or not.
>
>Alicia Mattson
>LNC Secretary
>
>
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>
>
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>
>

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