Greetings Area 72, Treasurer’s and Alternate Treasurer’s Financial Report for the year ending 2024.
2024 Big Picture:
- 2024 Contributions came in at $175,778.10 with $2.5K in Area Event Excess Funds for a total of $177,778 versus budget of $177,000.
- 2024 Expenses exceeded budget by $9.6K coming in at $188,824 versus $179,200.
- And a continued tightening as an Area as expenses exceeded contributions each of the last three quarters.
- The 2024 Area Assembly broke even providing excess funds of $432 versus over $10K last year.
- With contributions and expenses stabilized, the Finance Committee determined working reserve for 2025 could be reduced to $21,400 from $30,000. This provided the funds to cover the $9.6K Net Operating Loss along with some other positive cash events, allowing for a distribution to the General Service Board of $3,425.
Introduction to this Report:
It is our intent that this report can be easily read, understood and easily distributed to GSRs in your district for reporting purposes. Note that there is more to report this quarter because we have 4th Quarter results, Year-End results, Working Reserve calculations for 2025, and our year-end General Service Board (GSB) Distribution. And last, the “Accounting and Finance Refresher” and the “Guide (Key) to the Treasurer’s Documents and Financial Reports” can be found at the end of this report on Page 6.
Summary of Report Contents:
- Year-End 2024 results (Condensed);
- Working Reserve Calculation for 2025;
- Year-end Excess Funds and the 2025 GSB Distribution;
- Balance Sheet showing the Area’s financial health overall in terms of Assets; and
- Contribution Statistics – Mail-In vs. Online.
Financial Documents available on the Area website:
- This Narrative Financial Report Year-End 2024
- 2024 Budget by Quarter (Medium Blue Sheet)
- Statement of Activities (Income Statement) – By Quarter through Year-End 2024 (Green Sheet);
- Statement of Activities (Income Statement) – Q4 Actuals vs. Q4 Budget (Electronic version only);
- Statement of Activities (Income Statement) – 2024 Actuals vs. 2024 Budget (Yellow Sheet);
- Statement of Activities (Income Statement) – 2024 Actuals vs. 2023 Actuals (Orange Sheet);
- Statement of Cash Flows – By Quarter thru Year-End 2024 (Pink Sheet front);
- Statement of Financial Position (Balance Sheet) – By Quarter thru Year-End 2024 (Pink Sheet back); 9. Contributions Summary – Q4 2024 Totals (Electronic version only); and
10. Contributions Summary – 2024 Totals (Electronic version only).
Area 72 Proposed 2025 Budget:
- 2025 Budget (Light Blue Sheet): a 2-Page Summary with 2024 Budget and Actuals is included in your printed financial packet; and
- 2025 Budget Detail (Electronic version only): is available on the Area website with 2023 Budget, Actuals and Variance and 2024 Budget, Actuals and Variance side by side with the 2025 Budget with notes and comments explaining the rationale.
2024 Year-End At-A-Glance:
- Year-End Statement of Activities (Income Statement) vs. 2024 Budget (Condensed):
Annual Contributions remain steady and strong coming in at $175,208.34. Expenses exceeded Budget by $9.6K totaling $188,824. However, due to positive cash events, the Area was still able to contribute to the General Service Board in the amount of $3,425.
- Working Reserve Calculation:
Area 72’s Working Reserve minimum is set by Motion 18.1 based on 10% of the average of the preceding two year’s expenses and the current year’s budgeted expenses. From there, the Finance Committee reviews and adjusts as needed. For 2025, the Finance Committee voted for a working reserve of $21,400; 12% of the Working Reserve Calculation as follows:
| Motion 18.1 Working Reserve Calculation | Minimum | ||
| 10% | 12.01% | ||
| 2023 Actuals | $ 163,194.56 | ||
| 2024 Actuals | 188,823.94 | ||
| 2025 Budget Version (4) | 182,500.00 | ||
| Subtotal – 3 years | $ 534,518.50 | ||
| Divide by 3 | 3.00 | ||
| Average | $ 178,172.83 | $ 178,172.83 | |
| Minimum Reserve Percentage | 10.00% | 12.01% | |
| Working Reserve 2025 | $ 17,817.28 | $ 21,400.00 | |
- Working Reserve, Seed Money Reserve and 2024 GSB Distribution:
Our 2024 Working Reserve remained intact for most of the year. And we continue to reserve $10K for 2026 and 2028 Assembly Seed Money Deposits estimated at $5K each. We also paid the 2029 Assembly Seed Money deposit of $5K before year-end. With contributions and expenses stabilized, the Finance Committee determined working reserve for 2025 could be reduced to $21,400 from $30,000. This provided the funds to cover the $9.6K Net Operating Loss along with some other positive cash events, allowing for a distribution to the General Service Board of $3,425.
| FINAL | |||
| 10% | 12.01% | ||
| 2024 GSB Distribution – Fin. Cmte 12-29-24 | |||
| Cash – As of 12/31/24 | $ 39,825.42 | $ 39,825.42 | |
| 2026 Assembly Deposit (2025) | (5,000.00) | (5,000.00) | |
| 2028 Assembly Deposit (2025) | (5,000.00) | (5,000.00) | |
| 2029 Assembly Deposit (12-29-24) | (5,000.00) | (5,000.00) | |
| Subtotal | $ 24,825.42 | $ 24,825.42 | |
| Back Out Working Reserve | (17,817.28) | (21,400.00) | |
| GSB Distribution | $ 7,008.14 | $ 3,425.42 | |
- Statement of Financial Position (Balance Sheet):
- Balance Sheet (Condensed):
| Statement of Financial Position (Balance Sheet) | As of | As of | |
| As of December 31, 2024 | Sep. 30, 2024 | Dec. 31, 2024 | Difference |
| ASSETS | |||
| 1000 Area Checking Account | $ 38,565.51 | $ 31,400.00 | $ (7,165.51) |
| !Assembly Checking Seed Money | 1,000.00 | 1,000.00 | – |
| 2024 Assembly Seed Money | 7,000.00 | – | (7,000.00) |
| 2025 Assembly Seed Money | 10,000.00 | 10,000.00 | – |
| 2026 Assembly Seed Money (NEW) | – | – | – |
| 2028 Assembly Seed Money (NEW) | – | – | – |
| 2029 Assembly Seed Money (NEW) | – | 5,000.00 | 5,000.00 |
| 1400 Quarterly Seed Money (18.4) | 1,250.00 | – | (1,250.00) |
| 1420 Cost Advance 2024 | 406.20 | 623.90 | 217.70 |
| OSD III Inventory | 10,943.23 | 6,663.46 | (4,279.77) |
| 1500 Deposits – Archives Facility | 1,334.03 | 1,334.03 | – |
| TOTAL ASSETS | $ 70,498.97 | $ 56,021.39 | $ (14,477.58) |
| LIABILITIES AND NET ASSETS | |||
| Liabilities | |||
| 2000 Foro Local Excess Funds | – | – | – |
| Total Liabilities | $ – | $ – | $ – |
| Net Assets | |||
| 3800 Unrestricted Net Assets #1 | 70,492.65 | 70,493.65 | 1.00 |
| Net Income (Loss) Applied | – | (14,471.26) | (14,471.26) |
| Total Net Assets | $ 70,498.97 | $ 56,021.39 | $ (14,477.58) |
| TOTAL LIABILITIES AND NET ASSETS | $ 70,498.97 | $ 56,021.39 | $ (14,477.58) |
- Our Stories Disclose Accounting and Inventory
The Area’s seed money to fund the production of the book not covered by presales shows as OSD Inventory on our Balance Sheet because we have remaining inventory for sale (i.e. an Asset that has value). Going forward, as we sell the remaining inventory (a cash event) we will be able to reduce the inventory balance on the Balance Sheet dollar-for-dollar. This is reflected in the Statement of Activities in the 4th Quarter column as $4,700 in sales offset by $4,700 in Cost of Goods Sold.
- Contributions Statistics – Mail-In vs. Online :
| PERCENTAGES BY DIST/GP/IND | Total 2023 | % | Total 2024 | % | |
| 4020 Districts – Mail-In | $ 28,103.00 | 86.00% | $ 27,233.62 | 84.15% | |
| 4021 Districts – Online | 4,576.68 | 14.00% | 5,130.93 | 15.85% | |
| $ 32,679.68 | 100.00% | $ 32,364.55 | 100.00% | ||
| 4030 Groups – Mail-In | $ 107,722.45 | 79.75% | $ 103,784.04 | 74.35% | |
| 4031 Groups – Online | 27,359.66 | 20.25% | 35,807.80 | 25.65% | |
| $ 135,082.11 | 100.00% | $ 139,591.84 | 100.00% | ||
| 4040 Individual/Anniversary – Mail-In | $ 1,685.33 | 57.82% | $ 983.33 | 30.24% | |
| 4041 Individual/Anniversary – Online | 1,229.47 | 42.18% | 2,268.62 | 69.76% | |
| $ 2,914.80 | 100.00% | $ 3,251.95 | 100.00% | ||
| Totals: | $ 170,676.59 | $ 175,208.34 | |||
| PERCENTAGES – MAIL-IN vs. ONLINE | Total 2023 | % | Total 2024 | % | |
| 4020 Districts – Mail-In | $ 28,103.00 | $ 27,233.62 | |||
| 4030 Groups – Mail-In | 107,722.45 | 103,784.04 | |||
| 4040 Individual/Anniversary – Mail-In | 1,685.33 | 983.33 | |||
| Total Mail-In Contributions | $ 137,510.78 | 80.57% | $ 132,000.99 | 75.34% | |
| 4021 Districts – Online | $ 4,576.68 | $ 5,130.93 | |||
| 4031 Groups – Online | 27,359.66 | 35,807.80 | |||
| 4041 Individual/Anniversary – Online | 1,229.47 | 2,268.62 | |||
| Total Online Contributions | $ 33,165.81 | 19.43% | $ 43,207.35 | 24.66% | |
| Totals: | $ 170,676.59 | 100.00% | $ 175,208.34 | 100.00% | |
6. CONTRIBUTIONS
To make an online contribution, go to: 3 ; or make checks payable to: Western Washington Area 72 and include the group name, group number, and district on the check and mail it in.
MAILNG ADDRESS:
Western Washington Area 72
1901 Cornwall Ave #745
Bellingham, WA 98225
7. THANK YOU!
To all the individual members, groups, and districts that support Area 72 with their 7th tradition contributions.
8. CONTACT INFORMATION
For questions or requests for additional information, please feel free to contact either Derek S. at treasurer@area72aa.org or Lisa S. at alttreasurer@area72aa.org.
Accounting and Finance Refresher:
- Area 72 is an unincorporated association with 501(c)(3) [Non-Profit] status with the Internal Revenue Service.
- Area 72 follows Generally Accepted Accounting Principles (GAAP) in managing its finances in addition to the principles set forth in the Steps, Traditions and Concepts.
- Financial Statements for non-profits consist of three primary reports:
- Statement of Activities (otherwise known as the Income Statement or Profit & Loss Statement) which shows a detail of Contributions, Expenses and Net Income (or Loss);
- Statement of Financial Position (otherwise known as the Balance Sheet) shows the assets, liabilities and equity of the organization as of a specific date including cash in the checking account; and
- Statement of Cash Flows showing the flow of any net income or loss and how it impacts the cash of the organization as shown on the Balance Sheet.
- For 2024, Area 72 maintained a Working Reserve of $30,000 throughout the year. This amount is included in the “Area Checking Account” on the Balance Sheet. If cash is higher than $30,000 than we have an excess, if less than $30,000, we have a deficit in the Working Reserve.
- At the end of each year, any amount of excess cash over our Operating Reserve is distributed to the General Service Board (care of GSO).
Guide (Key) to the Treasurer’s Documents and Financial Reports presented on the Area website
- Narrative Financial Report: refers to this document;
- 2024 Budget by Quarter (Blue sheet in portrait): This report shows the 2024 Budget by Quarter culminating in the “TOTAL” column on the right. This report will be provided at each quarterly so you are able to see the annual budget by quarter and compare it to our actual results.
- Statement of Activities (Income Statement) – By Quarter thru Year End 2024 (Green Sheet): This report shows the by Quarter. It shows each quarter side by side and the total to date.
- Statement of Activities – 2024 Actuals vs. Budget (Yellow Sheet): This report shows the actual Contributions, Expenses and Net Income (or Loss) for the Year versus the budgeted Contributions, Expenses and Net Income (or Loss) for the Year to see how the Area did against 2024 Budget projections.
- Statement of Activities – 2024 vs. 2023 (Orange Sheet): This report shows the actuals for this year versus the actuals for last year to see how the Area did against last year’s performance. This is a simple tool to expands our view of the financial activities of the Area not only on budget basis but year-over-year.
- Statement of Cash Flows – Quarter by Quarter ending 12-31-24 (Pink Sheet – front): All four Quarters side by side show how adjustments to the Balance Sheet and Net Income affect the cash balance.
- Balance Sheet – Quarter by Quarter ending 12-31-24 (Pink Sheet – back): This report is a snapshot in time (3-31-24; 6-30-24; 9-30-24 and 12-31-24) showing our Assets (cash balance, seed money and OSD inventory) versus our Liabilities and Net Assets (non-profit term for Equity).
Open for discussion and questions regarding Treasures Report:
- Debbie, DCM District 8 – We spent more than we budgeted, we paid all our bills, we have $21,000.00 working reserve, we made a contribution to GSO for $3,400.00, what else should I report to my district?
- Derek S., Area Chair – We are financially heathy.
- Dave, GSR for Morning Pheonix Group – Quarterly meals for this quarterly came to $1,522.00, don’t our registrations pay for that?
- Derek S., Area Chair – The Area pays for Elected, Appointed, and Area Tech Team folks for meals and registration. It does go to the host committee, but it shows up as an Area expense.
- Teri, GSR for Old Kent Group – We contributed $3,400.00 to GSO, what’s our past contribution?
- Derek S., Area Chair – We had excess funds after 2023 and although they are different numbers, when you net everything out we were able to contribute $10,000.00 to GSO.
- Pete, DCM District 22 – The working reserve is what we use to determine what contribution we make to GSO, we don’t carry an actual reserve, correct?
- Derek S., Area Chair – It just stays in the checking account, we do try to show our cash balance and if we deduct anything and compare our working reserve, it’s not a prudent reserve.
- Pete, DCM District 22 – Has there been a discussion about setting aside a 3 or 6 month reserve account?
- Derek S., Area Chair – That’s when we get into discussion of what our working reserve is, it’s not a prudent reserve. Lisa will bring up the definition and read about it.
- Lisa S., Alt Chair – “Area 72 defines the term working reserve to be monies set aside to help cover our motion driven, and contractual expenses, especially during, but not limited to, the first quarter of the year, which may need to be paid before sufficient contributions to the Area are received. The minimum amount for the working reserve is calculated based on motion 18.1 adjusted by the finance committee, if needed, and approved at the January Quarterly.”
- Susie, District 56 Treasurer – I have many questions and would love to chat with the Area Treasurer. Does the Area start with an overall budget for each committee position?
- Derek S., Area Chair – You will see when we go through the 2025 budget, we basically set the budget based on past motions.
- Susie, District 56 Treasurer – Could you go through the process?
- Derek S., Area Chair – The budget process will be explained in the upcoming 2025 budget in greater detail.
- Joe, DCM District 19 – When you talk about infrastructure and translation in the equipment, and we won’t have those costs in the 2025 budget is that speaking of the hardware and stuff that we use in the quarterlies and assemblies?
- Derek S., Area Chair – Yes, that is exactly what we’re talking about.
- Houston L., Area Registrar – I believe it’s inaccurate to say we won’t have infrastructure expenses for the hardware since the equipment will wear or breakdown. Have the treasurers ever considered a workshop on how the budget works? We only discuss a couple of pages out of 7 or 8.
- Aarin R. – Derek and Lisa did an amazing job when I asked them to come and do a workshop for us.
Motion to approve Treasures Report Moved by District: 8, 2nd by District: 40, Passed
