[Lnc-business] July End-of-Month Financial Reports

[Alicia Mattson]

Colleagues,

It is time for the LNC to start paying very close attention to our
finances.  We cannot just casually vote "yes" on every spending
request that makes us feel good.

The report that we just received says that we have $127k of cash, but
we owe vendors $146k.  In addition, our other "current" liabilities
(payable within 1 year) are another $40k.  Some of those current
liabilities will come due much sooner than others.  For instance,
accrued payroll will need to be paid much sooner than all the accrued
vacation obligations.

We're essentially insolvent.  This is even after raising (without
looking) something in the realm of $60k at the convention fundraising
banquet.

I presume that the bequests listed as current assets can't happen
until at least January when the FEC annual limits reset?  The only
other entry that looks like accounts receivable is another $5k of
convention revenues that I guess is unfulfilled pledges?  If they
haven't made good by now, it may not happen at all...

For the year, we've spent $138k more than we've taken in.  That burned
through the cash surplus we had from past operations, and now we're a
in the hole.

It was a really bad idea to adopt a $245k deficit budget because the
spending is all authorized, even without the revenues to support the
spending.

-Alicia

On Sun, Aug 26, 2018 at 7:17 PM Tim Hagan via Lnc-business
<lnc-business at hq.lp.org> wrote:
>
>    The July End-of-Month Financial Reports are attached. The reserve is
>    still negative. We've managed by delaying paying the full amount owed
>    to the Hyatt Regency. They were paid $50,000 in August.
>
>    ---
>    Tim Hagan
>    Treasurer, Libertarian National Committee