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TREASURERS

REPORT TO THE NABJ BOARD OF DIRECTORS



PREPARED FOR THE OCTOBER 23-25, 2015 BOARD MEETING

DATED - OCTOBER 14, 2015









Prepared By: Greg Morrison
NABJ Board Treasurer





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TREASURERS REPORT TO THE NABJ BOARD OF DIRECTORS


PREPARED FOR THE OCTOBER 23-25, 2015 BOARD MEETING
DATED - OCTOBER 14, 2015


This Treasurers report will serve as a summarized update on NABJs financial status and results
for the actual year to date period ended August 31, 2015 and projections through year end
December 31, 2015.

A. Actual Year To Date Financial Results As of 08/31/2015 Are The Following:

The total NABJ revenue as of 08/31/2015 is $1,967,466.41. This amount is under the total
budgeted 2015 NABJ revenue of $3,421,500.00 by ($1,454,033.59).
The total NABJ sponsorship revenue as of 08/31/2015 is $915,602.98. This amount is under
the total NABJ 2015 budgeted sponsorship revenue of $1,801,100.00 by ($885,497.02).
The total NABJ 2015 Convention revenue as of 08/31/2015 is $1,686,128.70. This amount is
under the total budgeted 2015 Convention revenue of $2,342,837.00 by ($656,798.30).
The total NABJ 2015 Convention revenue as of 08/31/215 is $843,629.00. This amount is
under the budgeted NABJ 2015 Convention sponsorship revenue of $1,370,000.00 by
$656,708.30.
The total NABJ 2015 expenses as of 08/31/2015 are $2,036,834.00. This amount is under
the total NABJ 2015 budgeted expenses of $3,191,537.00 by $1,152,703.00.
The NABJ 2015 Convention expenses as of 08/31/2015 totaled $1,284,013.83. This amount
is under the NABJ budgeted 2015 Convention expenses of $1,341,259.00 by $57,245.17.
As of 08/31/2015 NABJ had a total net (loss) for the eight month period of ($69,387.59).
This amount is under the budgeted 2015 profit of $229,962.00 by ($303,330.59).
As of 08/31/2015 NABJ had a 2015 Convention net profit of $402,114. 77. This amount is
under the budgeted 2015 Convention net profit of $1,001,578.00 by ($599,463.13).


B. Projected Year End 12/31/2015 Financial Results As of 08/31/2015 Are The Following:

The total projected NABJ revenue for year-end 12/31/2015 is $1,967,466.41. This amount is
under the total budgeted 2015 NABJ revenue of $3,421,500.00 by ($1,339,885.79).
The total projected NABJ sponsorship revenue for year-end 12/31/2015 is $931,602.98. This
amount is under the total NABJ 2015 budgeted sponsorship revenue of $1,801,100.00 by
($869,497.02).
The projected total NABJ 2015 Convention revenue, convention sponsorship revenue,
convention expenses and convention net profit for year-end 12/31/2015 are the same as
the 08/31/2015 actual financial results above.

TREASURERS REPORT TO THE NABJ BOARD OF DIRECTORS




The total projected NABJ 2015 expenses for year-end 12/31/2015 are $2,459,921.52. This
amount is under the total NABJ 2015 budgeted expenses of $3,191,537.00 by $729,615.48.
The total projected net (loss) for year-end 12/31/2015 is ($380,307.31). This amount is
under the budgeted 2015 profit of $229,962.00 by ($610,270.31).

C. Cash Flow Projections for the Year-End 12/31/2015:


Projected for year-end 12/31/2015 is an operating cash deficit of ($56,961.73).
NABJs current negative financial and cash position is the worst it has been since December
2009 and has put the organization in the position where by the current Board had to
approve the sale of $400,000 of our investments to payoff unpaid 2015 NABJ Convention
debt.
It should be noted that even though we have sold $400,000 of our investments and used
those cash proceeds to pay off unpaid 2015 Convention debt it is still projected by year end
12/31/2015 it is still projected that we will have an operating cash deficit of ($56,961.73).
This would mean that we would not have the funds to stay operational going into calendar
year 2016.
The bottom line is that we must generate sufficient revenue sources over the next three
months that would provide the necessary cash flow that we would begin receiving in
January and February 2016.

D. Cash Balance, Accounts Receivable, Accounts Payable and Investment Balances As of
10/19/2015:

The Cash Balance - at 10/19/2015 is $101,984.99.


o The cash balance includes the $100,000 Ford Foundation Strategic Planning Grant
that was received in September 2015 and is being held in our savings account until
such time management and the Board determines how these funds will be spent.
o It should be noted that unless there is revenue generated by year-end 12/31/2015
to cover the projected ($56,961.73) cash flow deficit and operating expenses going
into calendar year 2016 the $100,000 Ford Grant funds will need to be used to cover
operating expense. Those grant funds will be replaced in 2016 once 2016
convention funding support and other revenues are received.
Accounts Receivable at 10/19/2015 the outstanding AR balance is $79,395.00.
o All of the outstanding AR balances are deemed collectable.

TREASURERS REPORT TO THE NABJ BOARD OF DIRECTORS




Accounts Payable at 10/19/2015 the accounts payable balance is $0.00
o All 2015 Convention debt has been paid in full.
o Currently NABJ does not have any unpaid payables.
o NABJ will be able to meet the payments of payroll, employee benefits, payroll taxes,
rent and other normal operating expenses through year-end 12/31/2015.
Investments at 10/19/2015 the investment account value is $412,875.28.
o On 09/16/2015 the Board approved the sales of $400,000.00 of its investments to
generate operating cash proceeds to pay off $400,000 of unpaid 2015 Convention.
o As of 10/19/2015 the sale of the $400,000 of our investments has been completed.
We have drawn down $300,000 of the cash proceeds to pay off the Convention debt
and all of those outstanding payables have been paid.
o We will draw down the final $100,000 of the cash proceeds from the sale of
investments on 10/22/2015.


E. Comments and Recommendations:

NABJ cannot incur a loss for year 2016.


NABJ will need to generate profits of $300,000+ in order to begin to turn our negative
finance position around.
We need to keep the expenditures for the October 2015 Board meeting at a minimum.
Unless the January 2016 Board meeting can be fully sponsored it should be held remotely.
To control convention costs it is recommended that following functions not be out sources
but be performed by the National Office staff fund raising, exhibit booth sales, convention
registration and the booking of convention travel.
Unless it is necessary or critical to operations do not incur expenditures for any activities
that are not included as a cost line item in the 2015 or 2015 NABJ budgets
To generate cash flow and revenue and effort should be made to hold 5-6 regional
conferences and media institute between February 2016 and June 2016.
Development should prioritize closing on existing corporate partners in order to fill the
funding pipeline for the generation of the needed operating cash for 2015 and 2016 budget
years.
There should be a clear understanding of all parties of the finance team on how the joint
NABJ and NAHJ 2016 Convention will impact on our finances.
There should be frequent communications and meetings between the National Office,
Board and Finance Committee regarding the finances of the organization.

TREASURERS REPORT TO THE NABJ BOARD OF DIRECTORS







Respectfully Submitted,

Greg Morrison, Treasurer




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