2018 Legion financial records

THE AMERICAN LEGION NATIONAL HEADQUARTERS Financial Statements July 31, 2018 With Supplementary Information The American Legion National Headquarters Balance Sheet July 3 l, 2018 Current Assets Cash Accounts Receivables Emblem Division Magazine Division Other Total Accounts Receivables Inventory Emblem Magazine Other Total Inventory Prepaid Expenses and Supplies Deferred Membership Expenses Postal Deposit Total Prepaid Investment Accrued Interest The Restricted Fund The Reserve Fund Segregated For Building Paid?Up?For?Life Fund Other Investment in Af?liate Total Investment Property Net Book Value Washington DC Land Indianapolis Land Washington DC Building Indianapolis Building Work in progress DC Work in progress Indianapolis Total Property Equipment Net Book Value Washington DC Indianapolis Total Equipment For Internal Use Only - Unaudited Financials 18,168,103 248,058 1,311,146 (485,688) 1,073,515 2,571,093 351,330 42,180 2,964,603 1,351,696 3,912,120 1,275,791 6,539,607 732,979 32,115,018 2,055,851 6,090,180 27,754,368 24,423,495 23,345 93,195,237 80,000 389,264 892,206 1,678,434 3,396 70,518 3,1 13,818 255,522 685,878 941,401 The American Legion National Headquarters Balance Sheet July 31, 2018 Assets - Continued Other Assets Receivable from Endowment Fund Total Other Assets Total Assets Liabilities and Fund Balance Current Liabilities Account Payable Deposit on Emblem Sales Prepaid Advertising Pension Expenses Scholarship Payable Deferred Dues Income Accrued Vacation Pay Other Liabilities Deferred Baseball Revenue Deferred Royalities Total Current Liabilities Long Term Liabilities Mortgage PUFL - Future Dues Total Long-term Liabilities Total Liabilities Funds General Fund Legacy Scholarship Overseas Graves Fund PUFL Fund The Restricted Fund The Reserve Fund Samsung Scholarship Other Funds Year-To-Date Net Total Funds Total Liabilities and Funds For Internal Use Only - Unaudited Financiais 2,000,000 2,000,000 127,996,284 3,343,014 430,532 1 17,996 19,449,457 13,797,960 1,030,502 390,099 2,400,325 46,965,333 512,049 52,307,553 53,319,607 100,234,990 (23,079,360) 13,360,721 972,346 (21,275,341) 33,325,054 2,243,241 5,000,000 15,774,542 1,390,590 127,996,284 The American Legion National Headquarters Income Statement July 31, 2018 .. Year to Date ?3 2017 Year to 3 -. >4 Variance July (dec)/inc Revenue . Membership $3,081,033 - - $22,056,100 . - -3.78% Membership Services 18,279 319,510 - -66.42% Royalities 721,365 1,473 ,949 I 3 3.81% Investments 275,887 1,793,196 3.26% Contributions and Fundraising 1,242,956 7,019,717 15.72% Endowment - Emblem Sales 1,147,807 9,023,722 1.19% Label and Printing Program 20,880 941,703 .-77.28% Magazine Income 650,950 5,557,087 49.13% Program Income 793,011 2,256,249 ~6.43% Other Income 284,904 907,938 . -38.65% Total Revenue 8,237,072 3 51,349,172 ~41 .97% Cost of Goods Sold 778,791 6,412,423 11.45% Gross Pro?t 7,458,281 . - 44,936,749 - -3.88% Expenses . - . Salaries and Bene?ts 1,986,918 . - I 13,361,002 - - 4.84% Magazine Expenses 859,039 5,900,544 ?1.70% Grants 46,945 1,378,817 4.07% Programs 774,066 3,574,790 4.50% Fundraising 681,036 5,773,300 21.95% Occupancy 196,015 1,195,002 2.74% Of?ce Operations 1,365,110 9,286,268 10.84% Postage and Printing 373,010 3,167,967 8.77% Total Expenses 6,282,140 7.52% Net Operating 1,176,142 231.40% Unrealized Gains/Losses - Allocations (902) Net income $1,177,044 -40.64% The American Legion National Headquarters Current vs. Prior Year Variance Explanations July 3 1, 201 8 2018 2017 Favorable/ Percent YTD YTD (Unfavorable) Change Revenues National Dues 21,221,634 22,056,100 (834,466) Emblem Income 9,130,728 9,023,722 107,006 1.19% Advertising Income 5,049,707 5,557,087 (5 07,380) Fundraising 1,781,910 2,167,715 (385,805) (17.80%) Contributions 6,341,278 4,852,002 1,489,276 30.69% Royalties Member Service Income 2,079,593 1,793,459 286,134 15.95% Programs Income 2,11 1,185 2,256,249 (145,064) Investment Income 1,851,702 1,793 ,196 58,506 3.26% Other Income 770,918 1,849,641 (1,078,723) (58.32%) Total Revenues 50,338,655 51,349,171 (1,010,516) Net Revenue Transfers Release 50,338,655 51,349,171 (1,010,516) Expenses Wages 9,825,373 9,557,534 (267,839) Bene?ts 2,889,022 3,803,469 914,447 24.04% Cost of Goods Sold 5,678,110 6,412,423 734,313 11.45% Grants 1,322,680 1,378,817 56,137 4.07% Direct Publications (Magazine Cost) 6,000,983 5,900,544 (100,439) Operations expenses 8,279,516 9,286,268 1,006,752 10.84% Postage and Printing Expense 2,890,235 3,167,967 277,732 8.77% Occupancy and Usage 1,227,73 3 1,195,002 (32,731) Programs 3,413,850 3,574,790 160,940 4.50% Fundraising 4,506,133 5,773,300 1,267,167 21.95% Total Expenses 46,033,635 50,050,114 4,016,479 8.02% Surplus from Operations 4,305,020 1,299,057 3,005,963 231.40% Other Income Expense Unrealized Gain Loss 2,919,040 (1 ,041 ,550) 3,960,590 (380.26%) Other Income/Expenses (Pension, PUF L) 0 0 0 Total Other Income Expense 2,919,040 (1,041,550) 3,960,590 (380.26%) TransfersiAllocations Transfers/Allocations (4,610) (1,949) (2,661) 136.53% Total Transfers (4,610) (1,949) (2,661) . 136.53% Revenue in Excess (De?ciency) of Expenses 1,390,590 2,342,556 (951,966) (40.64%) The American Legion National Headquarters urrent vs. Prior Month Variance Explanations July 31, 2018 Reason Favorable/ Accounting Timing/ Category (Unfavorable) laccrual One Time VolumelRate REVENUES: National Dues 2 107,006 W?'w ecial order sal a? Reason Favorable! Accounting Timing! Category (Unfavorable) laccrual One Time Volume/Rate Contributions Income continued Legacy scholarship fund contributions less than - (17,418) a Senior term life revenue less income received yet in 2018 a thnalast year. No Senior term life revenue less than 2017 (no Jul (7,822) payment credited). Programs Income . a? Marketing sponsorship revenue greater th last Meetings Convention revenue up from 2017 because of greater sponsorship revenue ($32,379) and greater banquet ticket sales ($6,077) offsetting a decrease in booth rental $20,620. less thaiilast a? ?w . .1 1. Internal Affairs/Membersh'p revenue Reason Favorable/ Accounting Timing/ Category Unfavorable) [accrual One Time Volume/Rate . . . - - .-: - . .- ealized gain?oss variance from last year 1,566) F1na11ce had a non-recurring one time receipt 1321,6187; 2017 of $575k offset partially by the receipt of management fees ttalin$241,972 in 2018. .w w-wm?m Meetings Convention division received the 27,523 convention corporation income split greater from Reno then from Cincinnati. {11.1111 1" i . 33? . Mm (12,726 Wages 50,002 Wage expense is down due to fewer employees 104,818 than 2017. a. . . . . Health insurance, reinsurance/admin ees expense I I 195,040 lower than last year. Reason Favorablei Accounting Timing/ Category (Unfavorable) {accrual One Time Volume/Rate (WA?v?t Bene?ts continued Payroll taxes and 401k match is down due to pr01i??ts air" Recognition awards expense up from 2017. :a ti Kiss . 3 ?Tags? . ?3e . Print shop salaryallocation less than prior year due greater revenue. 1 Errorrecording paper invent ry as expense -- August Reason Favorable/ Accounting Timing/ Category (Unfavorable) laccrual One Time Volume/Rate Membership Serv last year most especially the outside vendor packaging ($399k) of the increase. Greater credit card fees ($12,505) and direct renewal expense Outside services is down $38k. 4.. ?We (389,217) WK partnership expense and timing issue of First redeem pdideedyl .4 Purchasing lease agreements were renegotiated in 84,884 2017 causing year over year savings ($69k) and lower depreciation since some assets fully in 2071 ($19353). Ad . 41,1. ii . v.1 IT acquisitions and upgrades less than 2017 $65k and computer supplies $10k. Consulting fees are higher than 2017 $52k; outside services less than Media Communications expense are up from 2017. Outside services up $47k including $32k for Centennial app. Publicity and prmotion is less than lsat year $17,647 offset by higher publication information services $12k. ?to - off"655 Reason Favorable! Accounting Timing/ Category (Unfavorable) laccrual One Time VolumefRate Of?ce Operations variances continued DC Maintenance lower outside service fees 29,582 (temporary labor) $31k offset by depreciation for Indy Executive Director lower education expense than last year $17k; lower executive director 61666666 $.16 16666666666666 $316- by (2017 had temp fees for DC HR rep) $16k and lower hig telephone expense $11k due to more employees on our phone system; no Emblem Sales greater shipping expense than 2017 due to greater sales Veterans Employment &ducation lower printing $4,888 and shipping expenses $1,278. Reason Favorable! Accounting Timing! Category (Unfavorable) laccrual One Time Volume/Rate (32,731) Marketing sell'yces group facility expenses down ($6,284) higher utilities; (33,21 1) greater depreciation (due to build out); higher year due to timing of convention travel reports getting ready. Last year $258k in expense posted for July but only $65k this year. This is going to correct in August or September. ami Reason Favorable! Accounting Timing! Category (Unfavorable) {acerual One Time VolumefRate Programs continued I Fundraising bank ?nancial programs lower revenue share with the depa1 tments year over year. National Security increased prgaim expense related to Fulbright Institute event held during Washington Conference $7,500; greater travel expense than 2017 329 DRTV expenses lower than 2017 due to dlscontlnuatlon of the program. Legacy Run miscellaneos fundraising expenses 6,361 down from last year to date. Grants 1 . 56,137 Recording of gnrats from TAL to other TAL funds I I I I .. (221,047) (mainly ALC). 2017 One time grant to US Foundation of 50,000 Commanders incentive les awarded through May than in 2017. Net Surplus from Operations 3,323,804 (22,285) 653,175 2,692,914 Other Income Expen Other income/expenses (Pension, PUFL) Reason Favorable! Accounting Timing! laccrual The American Legion National Headquarters Emblem Sales Income Statement July 31, 2018 Revenue Auxiliary Sales Legion Sales Navy Club Sales Special Order Sales Royalty Revenue Shipping Revenue Miscellaneous Revenue Total Revenue Cost of Goods Sold Gross Profit Expenses Selling Expenses Publicity Promotion Advertising Postage and Freight Travel Expenses Shipping Supplies Total Selling Expenses General Administrative Expenses Salaries and Bene?ts Dues and Fees Of?ce Stationery Supply Outside Services Fees Printing Supplies Telephone Credit Card Fees Other Expenses Taxes Total General Admin Expenses Total Expens Allocations Net income Year to Date Variance 2017 Year to - - - . - Favorable/ July 2018 (Unfavorable) 85,368 781,596 3.91% 842,3 62 6,848,841 1.49% 92 955 -18.60% 64,158 455,749 48.18% 49,809 58,087 0.71% 106,017 878,493 6.51% 93 1,260 -25.96% 1,147,899 9,024,982 1.18% 673,387 4,987,889 0.88% 474,513 4,037,094 3.73% 51 2,474 68.87% 9,804 127,893 -24.33% 75,905 996,627 2.70% 5 10,784 -1.80% 4,057 16.19% 89,821 1,182,546 4. 17% 99,972 707,132 -7.61% 111 27,424 1,278 15,769 27.94% 12,204 106,359 3.45% 0 80 3,016 18,958 -15.64% 21,068 181,709 -5.06% 2,767 20,140 ~18.16% 0 64 140,414 1,077,634 -3.41% 230,236 2,260,101 ~3.81% 54,787 249,714 -14.26% 189,490 1,527,279 1.89% The American Legion Media& Communications Income Statement July 31, 2018 Year to Date Variance 2017 Year to i - - - 3 avorable/ July - . Date - .- (Unfavorable) Revenue Membership Subscriptions 477,022 -2.80% Advertising Income 63 5,976 5,279,468 ?10.15% Internet Group Income (eNewsletter) 14,974 189,680 -2.09% Production Income - 87,939 Other Subscriptions 10,621 148,259 - 1 7.5 5% Other Income (1,438) 37,836 ~73 .23% Total Revenue 1,137,155 9,125,456 -7.19% Cost of Goods Sold 92,841 765,098 8.91% Gross Pro?t 1,044,314 8,360,358 -7.03% Expenses Salaries and Bene?ts 144,542 1,212,208 13.99% Magazine Expenses 859,039 5,900,544 ?1.70% Grants 7,978 10,742 25.73% Of?ce Operations 57,658 423,112 ~9.93% Postage and Printing 3 ,01 1 75,601 17.20% Program Occupancy Expense 2,803 2,751 Total Expenses 1,075,031 7,624,958 0.56% Allocations 70,785 320,671 -20.93% Net income (101,501) 414,729 ?148.09%