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FLORIDA CHESS ASSOCIATION ANNUAL FINANCIAL REPORT (unaudited) FOR THE FISCAL YEAR ENDING AUGUST 31, 2008 Page 1 of 3
Highlights: Treasurer’s Note: This report is being prepared on August 29th, several days prior to the actual end of the fiscal year and prior to the availability of month end statements.. The figures presented might differ slightly from the final figures, which will be shared with the board no later than mid-September 2008.
The FCA ended the August 31, 2007 fiscal year with a total asset base of $31,709.14. The FCA checking account contained $6865.67, with the balance held in two (2) staggered, short term Certificates of Deposit.
Interest earned on the short term CDs was almost insignificant, just $323.65, due to the historically low interest rates in effect during the period (less than 2%). The first CD matured in early December, with the proceeds being swept into checking ($10,675.69). The second CD matured in August, with the proceeds being swept into checking ($14,565.31).
It was noted that the interest rates offered by the Bank of America were low compared to other possible suppliers. It was also recognized that the monthly fee charged by the Bank of America was unusually high ($29.00) considering our low level of “activity” and our significant balance. Several meetings were held with Bank of America officials in an attempt to recapture the high monthly fee. We were only partially successful.
The judgment was made to explore other potential suppliers for our business. Ultimately, the decision was made to close our Bank of America accounts, and move the FCA business to Regions Bank, who offers a zero monthly fee account. Rather than allow our liquid dollars to sit idle in a non-interest bearing checking account, our Regions account is a money market account with check writing privileges. The current interest rate is 2.00% (which was higher than the CD rates offered at the Bank of America).
The balance of FCA assets are held in a single, 14 month CD with a current interest rate of 4.25%. This CD permits the interest rate to be bumped up once during the period, at our option, should rates rise in the months ahead.
The transition to Regions Bank was completed on the 28th of August of 2008. A spreadsheet has been provided to document significant account activity at the Bank of America and at Regions Bank. The information is provided to demonstrate that all the dollars previously held at the Bank of America have reappeared at Regions Bank
FLORIDA CHESS ASSOCIATION ANNUAL FINANCIAL REPORT (unaudited) FOR THE FISCAL YEAR ENDING AUGUST 31, 2008 Page 2 of 3
To reiterate, the FCA ended the August 31, 2007 fiscal year with a total asset base of $31,709.14. The FCA checking account contained $6865.67, with the balance held in two (2) staggered, short term Certificates of Deposit. Assets at the Bank of America totaled $31,709.14.
As of August 29, 2008, all FCA accounts have been moved to Regions Bank. The balance in the money market account is $16,413.01. The (last known) balance in the CD is $15,000. Assets at Regions Bank total $31,413.01.
During the fiscal year, income nearly match outflow, resulted in a estimated net asset reduction of just $296.13 (compared to last years deficit of $5,755).
Expenses were considerably less during the fiscal year, as the substantial expense of supporting a GM event here in the State of Florida was not repeated ($6244.20). Requested matching funds for scholastic equipment was also significantly lower. Unlike the previous year, the FCA did provide two (2) $300 scholastic stipends.
Income from individual and affiliate renewals ($1768) was less than the previous year ($2305). The total number of Regular and Scholastic Memberships totaled 268 last year. The latest information available puts total FCA membership at 250. We can expect a significant wave of renewal activity within the next week, as many memberships are typically renewed just prior to the State Championship.
Fiscal 2009 Forecast & Recommendations:
Moving our accounts from the Bank of America to Regions Bank is expected to reduce our administrative costs by no less than $150 per year. The increase in interest rates offered by Regions is expected to generate approximately $700 in interest income.
The FCA’s most significant inflow of capital remains the $3000 contract payment from the FSCL, due on or around September 1st of each year. This may be the final year this $3000 payment is received. Much depends on scheduled Board action regarding the financial viability of the FSCL as a stand-alone organization.
With no significant change in our spending history, we should expect to close out the upcoming year with an asset base of approximately $31,000.
FLORIDA CHESS ASSOCIATION Income Statement (unaudited) FOR THE FISCAL YEAR ENDING AUGUST 31, 2008 Page 3 of 3
2008 2007
Revenue:
Membership Renewals $1768.16 $2305.80
Tournaments/Contracts $3435.00 $3810.00
Advertising $0.00 $100.00
Interest/Dividends $323.65 $679.65
Total Revenue $5526.81 $6895.45
Expenses:
Magazine $2800.17 $3278.06
GM Match Expenses $0.00 $6244.20
Scholastic Stipend $600.00 $0.00
Grand Prix Prizes $2025.00 $2050.00
Chess in Schools Matching Funds $83.76 $650.00
Bank Charges $175.90 $116.00
Miscellaneous $183.49 $312.36
Total Expenses $5868.29 $12,650.62
Net Income/(Loss) ($341.48) ($5755.17) |
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Last Update 5/16/2009 |
