(SCA Letterhead) P.O. Box 360743 * Milpitas, California 95036-0743 * Tel (408) 263-9305 * Fax (408) 263- 0641 A.J. Riviezzo l9211 E. Rice Drive 303-693-0198 Aurora, CO 80015 September 6, 1994 To those that come by these letters, I do send greetings. Attached please find a number of financial documents. The first set is the 6 month Statement of Revenue and Expenditures. The second set is the July Statement of Revenue and Expenditures without budget comparisons. The third item is the Statement of Assets and Liabilities. The fourth item is the Statement of Cash Flows. The purpose of this letter is to inform you of what the SCA's current financial situation is. This document will not go into each of the various line items of the budget and attempt to give reasons for the expenditures. In short, our financial situation continues to be poor. Our cash flow is currently at a negative $114,162.89. We can not continue to maintain operations with a negative cash flow for an extended period of time as our reserves are inadequate. Key elements in the negative cash flow are: 1. Revenues below budget due to the extended time required to implement the rate increase and an overly optimistic sales figure for the stock clerk. 2. Board postage and printing expenses from the mailing after the January Board meeting. 3. Overall higher expenses in general and administrative line items. 4. Legal fees being significantly higher than budgeted due to legal actions taken against the SCA. 5. Accounting fees being significantly higher than budgeted. 6. Computer systems fees being dramatically higher than budgeted. The Board has discontinued further development of a new data base/registry system and has opted for "patching" the current system at this time. It is currently planned for the new registry system to be retained and slowly completed using volunteer labor. It is hoped that legal fees will not continue to be a significant factor for fourth quarter 1994. Accounting fees are near monthly budgetary expectations at this time. In regards to revenues, it is hoped that the rate increase coupled with the non- member surcharge will assist the SCA in maintaining cash flow for the remainder of the year without further significant decreases in operating cash. Those Kingdoms wishing to assist this effort by declining the $1 rebate on the non-member surcharge are asked to contact A.J. Riviezzo or the Corporate Office. FINANCE COMMITTEE: The finance committee is seeking a few volunteers to assist with budget preparation and budget reviews. Those interested in serving should contact A.J. Riviezzo in writing. Accounting or budgeting experience is essential. SOCIETY OFFICERS: Please initiate the budget process. You will need to detail the following information: 1. Any capital expenditures desired, reasons for the capital expenditures, possible alternatives to the expenditure or specific item desired, and any other supporting information. 2. General office expenditures needed or desired. Please provide supporting documentation if this line item is more than 3% over current budget. 3. Any miscellaneous expenditures projected for FY 1995. Please note the nature of your miscellaneous expenditures for FY l994 (if any). 4. Any travel expenditures projected for FY 1995. Please provide supporting documentation for this line item including need, benefits to the Society, benefits to the Kingdoms, and benefits to the office you hold. 5. Stipend amounts including any increases which have previously been authorized. 6. Any other information which will assist the Finance Committee in developing the FY 1995 budget. Please send this information to A.J. Riviezzo and your ombudsman in writing by October 1, 1994. Those offices which do not send in budgetary requests will be issued a budget based on 1994's current expenditures less extraordinary expenditures. If you have questions, please do not hesitate to contact me. I am sure that some of the information provided will generate some questions. Please direct any questions in a written format to me. I will attempt to provide the answers that I have to your questions in a timely manner. The attached documents may be reprinted in SCA publications or officer reports but they may not be edited or altered. This mailing has been sent to all individuals currently listed in the Interkingdom Directory. Yours, In Service; (signature) A.J.Riviezzo Treasurer ------------------------------------------------------------------------------ Sep 6, 1994 Soc. For Creative Anachronism Page 1 3:33 am Statement of Cash Flows Jul/94 Jan/94 Inc/ CASH FLOWS, OPERATIONS: ====================== Period Earnings: <$145,116.34> Adjustments to Year-to-Date Earnings: Accounts Receivable <4,233.94> <1,054.59> <3,179.35> Inventory <70,568.62> <73,961.62> 3,393.00 Subscription Liability 222,810.89 209,335.00 13,475.89 Other Payables 15,696.84 <618.63> 16,315.47 Purchases Received 1,239.25 275.06 964.19 Stock Clerk Deposits 414.25 148.00 266.25 Sales Tax Payable 0.00 282.00 <282.00> ------------ NET CASH FLOWS, OPERATIONS <114,162.89> ------------ CASH FLOWS, FINANCING and INVESTING: =================================== ------------ NET CASH FLOWS, FINANCING and INVESTING 0.00 ------------ Net Increase (Decrease) in CASH and CASH EQUIVALENTS <114,162.89> ------------ CASH and CASH EQUIVALENTS Beginning of the Period 198,453.14 ----------- CASH and CASH EQUIVALENTS Current 84,290.25 =========== CASH and CASH EQUIVALENTS: ========================== Corporate Office Account 36,629.17 Credit Card Bank Account 12,766.97 Money Market Account 34,594.11 Treasurer's Account 300.00 ---------- TOTAL CASH and CASH EQUIVALENTS 84,290.25 ========== ------------------------------------------------------------------------------ Sep 6, 1994 Soc. For Creative Anachronism Page 1 3:34 am Statement of Revenue & Expenditures 7 Months Ended July 31, 1994 =========== ===%=== Revenue Membership Memberships $399,627.74 84.4% Donations-Australia 4,707.23 1.0% Board Minute Subs. Refund <2,773.00> -0.6% Non-Member Surcharge 807.00 0.2% ------------ TOTAL Registry 402,368.97 85.0% ------------ Stock Clerk 40,093.87 8.5% Stock Clerk - Australia 2,739.32 0.6% Stock Clerk - CA 7,521.15 1.6% Postage Income 1,687.50 0.4% TI Advertising 18,279.49 3.9% Miscellaneous Income Insurance Certificates 2,406.00 0.5% Returned Checks/Charges <2,972.64> -0.6% Interest Income 953.07 0.2% Lawsuit Recovery 699.93 0.1% ------------ TOTAL Miscellaneous Income 1,086.36 0.2% ------------ TOTAL Revenue 473,776.66 100.1% ------------ Stock Clerk Sales Adj. <512.23> -0.1% ------------ TOTAL <512.28> -0.1% ------------ 473,264.38 100.0% ------------ Expenditures Kingdom Newsletters Kingdom Newsletters Stipends 92,817.59 19.6% ------------ TOTAL Kingdom Newsletters 92,817.59 19.6% ------------ T.I. Operating expenses Postage 18,985.69 4.0% Printing 35,232.16 7.4% Office supplies 408.72 0.1% Misc.(Reader Survey) 3,199.42 0.7% ------------ TOTAL T.I. Operating expenses 57,825.99 12.2% ----------- Advertising Miscellaneous 235.00 0.0% ----------- TOTAL Advertising 235.00 0.0% ----------- T.I. Editor Editor's Honorariums 2,100.00 0.4% Office expenses 1,626.20 0.3% Travel 509.39 0.1% ----------- TOTAL T.I. Editor 4,235.59 0.9% ----------- T.I. Art Director Honorariums 1,600.00 0.3% Office expenses 1,353.52 0.3% ----------- TOTAL T.I. Art Director 2,953.52 0.6% ----------- C.A. Operating expenses Postage 5,390.53 1.1% Printing 15,099.75 3.2% ----------- TOTAL C.A. Operating expenses 20,490.28 4.3% ----------- Cost of Sales - Stock Clerk Cost of Sales - Stock Clerk 19,484.75 4.1% Inventory Variance Adjustment 403.07 0.1% ----------- TOTAL Cost of Sales - Stock Clerk 19,887.82 4.2% ----------- Stock Clerk Operating Expenses Printing 5,388.23 1.1% Postage 9,301.67 2.0% Office Supplies 1,724.66 0.4% Telephone 110.64 0.0% Travel 240.00 0.1% Miscellaneous 22.50 0.0% ----------- TOTAL Stock Clerk Operating Expenses 16,787.70 3.5% ----------- Board Members Telephone 7,158.95 1.5% Postage 7,346.10 1.6% Office supplies 586.39 0.1% Travel 224.00 0.0% Miscellaneous 9.78 0.0% ----------- TOTAL Board Members 15,325.22 3.2% ----------- Society Seneschal Office expenses 2,476.60 0.5% Travel 614.51 0.1% Stipend 2,575.00 0.5% ---------- TOTAL Society Seneschal 5,666.11 1.2% ---------- Chancellor of the Exchequer Office expenses 665.19 0.1% Stipend 2,227.00 0.5% ---------- TOTAL Chancellor of the Exchequer 2,892.19 0.6% ---------- Chronicler Office expenses 406.42 0.1% ---------- TOTAL Chronicler 406.42 0.1% ---------- Librarian/Archivist Office expenses 221.25 0.0% ---------- TOTAL Librarian/Archivist 221.25 0.0% ---------- Chirurgeon General Office expenses 286.29 0.1% ---------- TOTAL Chirurgeon General 286.29 0.1% ---------- Board Meeting Travel - Airfare/taxi 7,277.01 1.5% Lodging 4,378.98 0.9% Hotel, Food, Beverage 1,071.71 0.2% Miscellaneous Meals 6.50 0.0% Conference Call Meetings 3,346.88 0.7% Miscellaneous 31.50 0.0% ---------- TOTAL Board Meeting 16,112.58 3.4% ----------- Salaries, Benefits & Taxes Salaries 55,973.64 11.8% Payroll taxes 5,684.79 1.2% Workers' Compensation 388.86 0.1% Medical - employee 2,106.45 0.4% Pension 250.00 0.1% ---------- TOTAL Salaries, Benefits & Taxes 64,403.74 13.6% ---------- General & Administrative Rent 14,850.79 3.1% Utilities 1,779.65 0.4% Telephone 8,343.14 1.8% Equipment & Supplies 9,891.90 2.1% Maintenance Contracts,etc. 7,367.32 1.6% Printing 17,792.28 3.8% Postage 19,849.18 4.2% Bank service charges 2,930.70 0.6% Licenses and Fees 19.00 0.0% Moving Expenses 1,253.75 0.3% ---------- TOTAL General & Administrative 84,077.71 17.8% ---------- Professional Services Legal 38,222.14 8.1% Accounting 13,652.37 2.9% Bookkeeping 4,664.00 1.0% Consultants - Other [ED] 45,171.97 9.5% Computer systems 66,727.11 14.1% ----------- TOTAL Professional Services 168,437.59 35.6% ----------- Insurance General Liability 40,134.37 8.5% Fidelity Bond 978.00 0.2% D & O Liability 2,000.00 0.4% Equestrian 3,029.68 0.6% Property <288.00> -0.1% Certificate of Insurance 2,532.03 0.5% ---------- TOTAL Insurance 43,336.13 10.2% ---------- Capital expenditures 14,716.66 3.1% ---------- TOTAL Expenditures 636,165.38 134.4% ------------ Program Revenue over Expenditures <162,901.00> -34.4% ------------ <162,901.00> -34.4% ------------ Excess of Revenue over Expenditures <$162,901.00> -34.4% ============ ------------------------------------------------------------------------------ Jul 19, 1994 Soc. For Creative Anachronism Page 1 6:35 pm Statement of Revenue & Expenditures 6 Months Annual Ended Jun/94 Budget Unused % Used ============ ============ ============ ====== Revenue Membership Memberships $340,158.61 $712,850.00 $372,691.39 47.7% Donations 2.00 60,000.00 59,998.00 0.0% Donations-Australia 4,707.23 0.00 <4,707.23> Board Minute Subs. Refund <2,675.00> 0.00 <2,675.00> non-member surcharge 114.00 0.00 ------------- ------------ ------------- TOTAL Registry 342,306.84 772,850.00 430,543.16 44.3% ------------- ------------ ------------- Stock Clerk 32,276.62 175,000.00 142,723.38 18.4% Stock Clerk - Australia 2,739.32 0.00 <2,739.32> Stock Clerk - CA 6,984.45 0.00 <6,984.45> Postage Income 1,275.57 0.00 <1,275.57> TI Advertising 17,609.49 12,000.00 <5,609.49> 146.7% Miscellaneous Income Insurance Certificates 2,926.00 11,000.00 8,074.00 26.6% Returned Checks/Charges <2,062.43> 0.00 <2,062.43> Interest Income 801.01 5,000.00 4,198.99 16.0% MBNA Royalties 0.00 2,000.00 2,000.00 0.0% Lawsuit Recovery 599.94 1,200.00 600.06 50.0% ------------ ----------- ----------- TOTAL Miscellaneous Income 2,264.52 19,200.00 16,935.48 11.8% ------------ ----------- ----------- TOTAL Revenue 405,456.81 979,050.00 573,593.19 41.4% ------------ ----------- ----------- Stock Clerk Sales Adj. <351.98> 0.00 <351.98> ------------ ----------- ----------- TOTAL <351.98> 0.00 <351.98> ------------ ----------- ----------- 405,104.83 979,050.00 573,945.17 41.4% ------------ ----------- ----------- Expenditures Kingdom Newsletters Kingdom Newsletters Stipends 92,817.59 172,888.00 80,070.41 53.7% ----------- ----------- ---------- TOTAL Kingdom Newsletters 92,817.59 172,888.00 80,070.41 53.7% ----------- ----------- ---------- T.I. Operating expenses Postage 17,917.22 39,500.00 21,582.78 45.4% Printing 22,636.93 54,400.00 31,763.07 41.6% Office supplies 408.72 1,500.00 1,091.28 27.2% Articles & Artwork 0.00 600.00 600.00 0.0% Misc.(Reader Survey) 3,199.42 2,000.00 <1,199.42> 160.0% ------------ ---------- ---------- TOTAL T.I. Operating expenses 44,162.29 98,000.00 53,837.71 45.1% ------------ ---------- ---------- Advertising Printing - Marketing/Sales 0.00 2,000.00 2,000.00 0.0% Services for Sales 0.00 1,000.00 1,000.00 0.0% Miscellaneous 0.00 500.00 500.00 0.0% ------------ ---------- ---------- TOTAL Advertising 0.00 3,500.00 3,500.00 0.0% ------------ ---------- ---------- T.I. Editor Editor's Honorariums 1,400.00 2,800.00 1,400.00 50.0% Office expenses 1,123.48 1,600.00 476.52 70.2% Travel 292.09 400.00 107.91 73.0% Miscellaneous 235.00 435.00 200.00 54.0% ------------ ---------- ---------- TOTAL T.I. Editor 3,050.57 5,235.00 2,184.43 58.3% ------------ ---------- ---------- T.I. Art Director Honorariums 1,000.00 2,400.00 1,400.00 41.7% Office expenses 950.45 1,000.00 49.55 95.0% ------------ ---------- ---------- TOTAL T.I. Art Director 1,950.45 3,400.00 1,449.55 57.4% ------------ ---------- ---------- C.A. Operating expenses Postage 4,754.24 18,000.00 13,245.76 26.4% Printing 12,155.07 17,500.00 5,344.93 69.5% ------------ ---------- ---------- TOTAL C.A. Operating expenses 16,909.31 35,500.00 18,590.69 47.6% ------------ ---------- ---------- C.A. Editor Office expenses 0.00 800.00 800.00 0.0% ------------ ---------- ---------- TOTAL C.A. Editor 0.00 800.00 800.00 0.0% ------------ ---------- ---------- Cost of Sales - Stock Clerk Cost of Sales - Stock Clerk 32,356.15 50,000.00 17,643.85 64.7% Inventory Variance Adjustment 403.07 0.00 <403.07> ------------ ---------- ---------- TOTAL Cost of Sales - Stock Clerk 32,759.22 50,000.00 17,240.78 65.5% ------------ ---------- ---------- Stock Clerk Operating Expenses Printing 5,409.06 15,000.00 9,590.94 36.1% Postage 9,301.67 17,000.00 7,698.33 54.7% Office Supplies 1,724.66 8,000.00 6,275.34 21.6% Advertising 0.00 2,000.00 2,000.00 0.0% Telephone 110.64 0.00 <110.64> Travel 240.00 2,000.00 1,760.00 12.0% Miscellaneous 1,537.34 1,000.00 <537.34> 153.7% ------------ ---------- ---------- TOTAL Stock Clerk Operating Expenses 18,323.37 45,000.00 26,676.63 40.7% ------------ ---------- ---------- Board Members Telephone 6,473.38 10,000.00 3,526.62 64.7% Postage 7,317.10 800.00 <6,517.10> 914.6% Office supplies 307.65 1,200.00 892.35 25.6% Travel 186.00 2,100.00 1,914.00 8.9% Miscellaneous 9.78 1,400.00 1,390.22 0.7% ------------ ---------- ---------- TOTAL Board Members 14,293.91 15,500.00 1,206.09 92.2% ------------ ---------- ---------- Society Seneschal Office expenses 2,249.83 3,000.00 750.17 75.0% Travel 625.51 2,500.00 1,874.49 25.0% Miscellaneous 0.00 300.00 300.00 0.0% Stipend 1,775.00 4,575.00 2,800.00 38.8% ------------ ---------- ---------- TOTAL Society Seneschal 4,650.34 10,375.00 5,724.66 44.8% ------------ ---------- ---------- Chancellor of the Exchequer Office expenses 484.60 1,100.00 615.40 44.1% Travel 0.00 700.00 700.00 0.0% Miscellaneous 0.00 775.00 775.00 0.0% Stipend 1,577.00 3,825.00 2,248.00 41.2% ------------ ---------- ---------- TOTAL Chancellor of the Exchequer 2,061.60 6,400.00 4,338.40 32.2% ------------ ---------- ---------- Chronicler Office expenses 406.42 1,200.00 793.58 33.9% Miscellaneous 0.00 200.00 200.00 0.0% ------------ ---------- ---------- TOTAL Chronicler 406.42 1,400.00 993.58 29.0% ------------ ---------- ---------- Laurel Sovereign of Arms Office expenses 0.00 800.00 800.00 0.0% Miscellaneous 0.00 500.00 500.00 0.0% ------------ ---------- ---------- TOTAL Laurel Sovereign of Arms 0.00 1,300.00 1,300.00 0.0% ------------ ---------- ---------- Marshal Office expenses 0.00 800.00 800.00 0.0% ------------ ---------- ---------- TOTAL Marshal 0.00 800.00 800.00 0.0% ------------ ---------- ---------- Mistress of Arts and Sciences Office expenses 0.00 800.00 800.00 0.0% ------------ ---------- ---------- TOTAL Mistress of Arts and Science 0.00 800.00 800.00 0.0% ------------ ---------- ---------- Librarian/Archivist Office expenses 221.25 800.00 578.75 27.7% Miscellaneous 0.00 1,200.00 1,200.00 0.0% ------------ ---------- ---------- TOTAL Librarian/Archivist 221.25 2,000.00 1,778.75 11.1% ------------ ---------- ---------- Chirurgeon General Office expenses 286.29 800.00 513.71 35.8% ------------ ---------- ---------- TOTAL Chirurgeon General 286.29 800.00 513.71 35.8% ------------ ---------- ---------- Committees Office expenses 0.00 5,000.00 5,000.00 0.0% Travel 0.00 2,000.00 2,000.00 0.0% Miscellaneous 0.00 500.00 500.00 0.0% ------------ ---------- ---------- TOTAL Committees 0.00 7,500.00 7,500.00 0.0% ------------ ---------- ---------- Board Meeting Travel - Airfare/taxi 6,625.01 26,000.00 19,374.99 25.5% Lodging 4,378.98 10,000.00 5,621.02 43.8% Hotel, Food, Beverage 1,071.71 6,000.00 4,928.29 17.9% Miscellaneous Meals 6.50 1,500.00 1,493.50 0.4% Conference Call Meetings 1,889.92 5,200.00 3,310.08 36.3% Miscellaneous 31.50 300.00 268.50 10.5% ------------ ---------- ---------- TOTAL Board Meeting 14,003.62 49,000.00 34,996.38 28.6% ------------ ---------- ---------- Salaries, Benefits & Taxes Salaries 50,342.50 132,800.00 82,457.50 37.9% Payroll taxes 4,410.37 15,936.00 11,525.63 27.7% Workers' Compensation 388.86 1,300.00 911.14 29.9% Medical - employee 1,767.38 9,375.00 7,607.62 18.9% Pension 250.00 0.00 <250.00> Training & Development 0.00 3,000.00 3,000.00 0.0% Miscellaneous 185.09 0.00 <185.09> ------------ ---------- ---------- TOTAL Salaries, Benefits & Taxes 57,344.20 162,411.00 105,066.80 35.3% ------------ ---------- ---------- General & Administrative Rent 11,834.00 24,893.00 13,059.00 47.5% Utilities 1,560.24 5,195.00 3,634.76 30.0% Telephone 7,512.59 6,096.00 <1,416.59> 123.2% Equipment supplies 8,827.26 13,041.00 4,213.74 67.7% Maintenance Contracts,etc. 6,665.18 4,800.00 <1,865.18> 138.9% Printing 16,736.84 18,787.00 2,050.16 89.1% Postage 19,499.07 21,540.00 2,040.93 90.5% Travel 0.00 1,200.00 1,200.00 0.0% Bank service charges 1,962.20 2,820.00 857.80 69.6% Licenses and Fees 19.00 3,728.00 3,709.00 0.5% Property taxes 0.00 150.00 150.00 0.0% Miscellaneous expenses 5,253.89 1,350.00 <3,903.89> 389.2% ------------ ---------- ---------- TOTAL General & Administrative 79,870.27 103,600.00 23,729.73 77.1% ------------ ---------- ---------- Professional Services Legal 34,000.15 24,000.00 <10,000.15> 141.7% Accounting 13,652.37 12,000.00 <1,652.37> 113.8% Bookkeeping 4,101.00 9,000.00 4,899.00 45.6% Consultants - Other [ED] 37,123.55 36,000.00 <1,123.55> 103.1% Executive Director search 0.00 4,000.00 4,000.00 0.0% Computer systems 52,183.67 27,000.00 <25,183.67> 193.3% ------------ ---------- ---------- TOTAL Professional Services 141,060.74 112,000.00 <29,060.74> 125.9% ------------ ---------- ---------- Insurance General Liability 40,134.37 38,000.00 <2,134.37> 105.6% Fidelity Bond 978.00 500.00 <478.00> 195.6% D & O Liability 2,000.00 2,000.00 0.00 100.0% Equestrian 3,029.68 1,000.00 <2,029.68> 303.0% Property <288.00> 1,000.00 <1,288.00> Foreign 0.00 5,000.00 5,000.00 0.0% Certificate of Insurance 2,532.08 2,500.00 <32.08> 101.3% ------------ ---------- ---------- TOTAL Insurance 48,386.13 50,000.00 1,613.87 96.8% ------------ ---------- ---------- Capital expenditures 10,066.52 28,000.00 17,933.48 36.0% ------------ ---------- ---------- TOTAL Expenditures 582,624.09 966,209.00 383,584.91 60.3% ------------ ---------- ---------- Program Revenue over Expenditures <177,519.26> 12,841.00 <190,360.26> ------------ ---------- ---------- <177,519.26> 12,841.00 <190,360.26> ------------ ---------- ---------- Excess of Revenue over Expenditures <$177,519.26> $12,841.00 <$190,360.26> ============ ============ ============