VETERANS OF FOREIGN WARS OF THE UNITED STATES AUXILIARY SEPTEMBER 1, 2017 - MAY 31, 2018 2017-2018 FISCAL YEAR Dee Guillory, National President Jan Passmore, National Secretary-Treasurer Virginia Carman, Budget Committee Chairman
VETERANS OF FOREIGN WARS OF THE UNITED STATES AUXILIARY 2017-2018 EXPLANATION OF VARIANCES Page 1 The total revenue of the National Headquarters Fund is $2,676,920 (i.e. 64.30%) of the budgeted amount and the total expenses are $2,581,478 (i.e. 62.01%) of the budgeted amount, resulting in net gain of $95,442. Page 2 Revenues Mailing List and Label Sales is $125. The VFW took over the National Change of Address process for the member files that the VFW Auxiliary sends to them. Thus the VFW is now incurring the cost so the VFW Auxiliary is no longer reimbursed for this expense. This issue was previously discussed with the Council of Administration at the Mid-Year Conference in February, 2018. Revenues National Dues are $733,787. This is 46.11% of the projected amount. VFW Auxiliary National Headquarters budget spans over a two dues years. For annual members, HQ is able to recognize 4/12 of 2017 annual dues paid and 8/12 of 2018 annual dues paid. For life membership revenue, each year HQ is able to recognize only a portion of life memberships paid. An example is a member that was 27 years old & paid $200 for life membership near the end of December 2016. The life expectancy for this member is 82.4 years, thus the $200 in life membership revenue has to be prorated over 55.40 years. This equates $3.61 per year of revenue that can be recognized. This revenue recognition has to be divided between National, Department, and the local Auxiliary. National s portion of revenue per year for this member would be $1.20. The calculation for recognizable life membership revenue is compiled and completed at the end of the fiscal year. Pages 4-5 National Senior Vice President, National Junior Vice President, National Chaplain, National Conductress, and National Guard - Miscellaneous are over budget. The National Officers requested special cards this year that resulted in an overage. This overage has previously been approved by the Council of Administration at the Mid-Year Conference in February, 2018. Page 6 National Headquarters Expenses Annual Membership Fulfillment Packages is $110,372. This amount is over budget by $20,372. This is the first year membership cards are being sent by National Headquarters. With the numerous issues that have come up, this line item is over budget. Page 1 of 2
National Headquarters Expenses Benefits is $75,195. This is 30.08% of the amount budgeted. One of the largest expenses for benefits is the retirement plan. This expense is calculated at the end of the fiscal year in accordance with the VFW and actuarial firm. Page 7 National Headquarters Expenses Printing is 9,284. This is 37.14% of the amount budgeted. With the potential changes coming to the membership application and programs, it was decided not to waste money on printing brochures and other items that would soon become antiquated. National Headquarters Expenses Salaries is 356,891. This is 59.28% of the amount budgeted. With one National HQ staff that was out most of the year who has now passed and with an open position, this amount is below budget. Programs Program and Awards Book is $11,795. This amount is over budget by $295. $11,795 was the amount charged for the production and printing of the Program and Awards book. This overage has previously been approved by the Council of Administration at the Mid-Year Conference in February, 2018. Page 9 Conferences and Meetings Ambassadors Briefing & Workshop is $26,646. This line item is over budget by $5,146. The overage can be attributed to additional attendees to the conference that had not been part of the conference in the recent past. This overage has previously been approved by the Council of Administration at the Mid-Year Conference in February, 2018. Page 12 National Home for Children VFW National Home Repairs and Renovations is $14,651. This line item is over budget by $4,651. This overage has previously been approved by the Council of Administration at the Mid-Year Conference in February, 2018. Page 2 of 2
NATIONAL HEADQUARTERS UNRESTRICTED FUNDS TOTAL REVENUES (PER PAGE 2) $4,162,890 $2,676,920 ($1,485,970) 64.30% TOTAL EXPENSES (PER PAGE 11) 4,162,890 2,581,478 1,581,412 62.01% NET INCOME $0 $95,442 $95,442 ========== =========== ============ PAGE 1 OF 12
REVENUES ADMINISTRATION OF FUNDS $389,390 $222,367 ($167,023) 57.11% CANCER INSURANCE 90,000 39,315 (50,685) 43.68% GROSS PROFIT FROM TREASURERS' BONDS 162,000 179,411 17,411 110.75% INVESTMENTS 1,300,000 1,036,026 (263,974) 79.69% MAILING LIST AND LABEL SALES 6,500 125 (6,375) 1.92% MISCELLANEOUS 8,500 8,473 (27) 99.68% NATIONAL CONVENTION 90,000 41,500 (48,500) 46.11% NATIONAL DUES 1,539,500 733,787 (805,713) 47.66% NET PROFIT FROM VFW SUPPLY DEPARTMENT 117,000 51,624 (65,376) 44.12% REVENUE FROM MEMBER BENEFITS 460,000 364,292 (95,708) 79.19% TOTAL REVENUES $4,162,890 $2,676,920 ($1,485,970) 64.30% ========== =========== ============ ======== PAGE 2 OF 12
EXPENSES NATIONAL PRESIDENT SALARY $65,845 $50,650 $15,195 76.92% EMPLOYEE BENEFITS 5,050 3,875 1,175 76.73% TRAVEL 62,000 53,608 8,392 86.46% TRAVEL EXPENSES FOR DOCUMENTARIAN 10,500 3,911 6,589 37.25% GIFTS FOR DEPARTMENT VISITS 2,500 1,935 565 77.40% GIFTS FOR COMMANDER IN CHIEF 500 500 0 100.00% PRESIDENT'S JEWEL 2,000 1,915 85 95.75% POSTAGE 150 98 52 65.33% PRINTING 1,500 519 981 34.60% MISCELLANEOUS 300 60 240 20.00% 150,345 117,071 33,274 77.87% PAGE 3 OF 12
NATIONAL SENIOR VICE PRESIDENT SALARY 9,623 7,402 2,221 76.92% EMPLOYEE BENEFITS 800 567 233 70.88% TRAVEL 10,000 5,371 4,629 53.71% MISCELLANEOUS 200 341 (141) 170.50% 20,623 13,681 6,942 66.34% NATIONAL JUNIOR VICE PRESIDENT SALARY 9,117 7,013 2,104 76.92% EMPLOYEE BENEFITS 725 536 189 73.93% TRAVEL 9,010 6,352 2,658 70.50% MISCELLANEOUS 150 341 (191) 227.33% 19,002 14,242 4,760 74.95% NATIONAL SECRETARY TREASURER SALARY 66,043 50,802 15,241 76.92% EMPLOYEE BENEFITS 15,000 12,155 2,845 81.03% TRAVEL 16,830 14,003 2,827 83.20% 97,873 76,960 20,913 78.63% PAGE 4 OF 12
NATIONAL CHAPLAIN SALARY 7,597 5,844 1,753 76.93% EMPLOYEE BENEFITS 600 447 153 74.50% TRAVEL 2,670 2,449 221 91.72% MISCELLANEOUS 150 341 (191) 227.33% 11,017 9,081 1,936 82.43% NATIONAL CONDUCTRESS / CONDUCTOR SALARY 7,091 5,455 1,636 76.93% EMPLOYEE BENEFITS 600 417 183 69.50% TRAVEL 2,640 1,660 980 62.88% MISCELLANEOUS 150 341 (191) 227.33% 10,481 7,873 2,608 75.12% NATIONAL GUARD SALARY 6,584 5,065 1,519 76.93% EMPLOYEE BENEFITS 600 386 214 64.33% TRAVEL 2,715 1,938 777 71.38% MISCELLANEOUS 150 341 (191) 227.33% 10,049 7,730 2,319 76.92% PAGE 5 OF 12
NATIONAL HEADQUARTERS EXPENSES ANNUAL MEMBERSHIP FULFILLMENT PACKAGES 90,000 110,372 (20,372) 122.64% ACCIDENT INSURANCE FOR OFFICERS AND EMPLOYEES 2,700 2,500 200 92.59% AUDIT AND TAX SERVICES 34,000 31,725 2,275 93.31% BANKING AND INVESTMENT SERVICE CHARGES 50,000 33,120 16,880 66.24% BENEFITS 250,000 75,195 174,805 30.08% CHARTER KITS 6,000 3,089 2,911 51.48% COMPUTER HARDWARE & SOFTWARE MAINTENANCE 10,000 2,448 7,552 24.48% CONSULTING SERVICES, SUPPORT, & MALTA HOSTING 233,000 173,875 59,125 74.62% CREDIT CARD PROCESSING FEES 20,000 9,560 10,440 47.80% EMPLOYEE PROFESSIONAL DEVELOPMENT 20,000 0 20,000 0.00% INTERNET SECURITY 1,000 954 46 95.40% MARKETING AND ADVERTISING 75,000 29,340 45,660 39.12% MISCELLANEOUS 2,000 135 1,865 6.75% NATIONAL CERTIFIED RECRUITER TRAINER PROGRAM 15,000 3,318 11,682 22.12% NATIONAL MAGAZINE 900,000 754,188 145,812 83.80% OFFICE SUPPLIES 15,000 3,536 11,464 23.57% PAYROLL SERVICE 5,000 2,636 2,364 52.72% POSTAGE 45,000 17,771 27,229 39.49% PAGE 6 OF 12
NATIONAL HEADQUARTERS EXPENSES CONTINUED PRINTING 25,000 9,284 15,716 37.14% PROPERTY AND LIABILITY INSURANCE 22,000 21,226 774 96.48% RENT, UTILITIES AND JANITORIAL SERVICES 182,000 136,036 45,964 74.75% REPAIRS AND MAINTENANCE 5,000 2,174 2,826 43.48% SALARIES 602,000 356,891 245,109 59.28% TELEPHONE AND INTERNET ACCESS 26,000 17,269 8,731 66.42% 2,635,700 1,796,642 839,058 68.17% PROGRAMS AWARDS 195,000 78,015 116,985 40.01% PROGRAM AND AWARDS BOOK 11,500 11,795 (295) 102.57% PROMOTION OF PROGRAMS 4,500 0 4,500 0.00% TRAVEL 5,300 1,982 3,318 37.40% 216,300 91,792 124,508 42.44% PAGE 7 OF 12
SPECIAL EVENTS AND CONTRIBUTIONS ACADEMY AWARDS (ANNAPOLIS, COAST GUARD, WEST POINT, AND AIR FORCE) 1,500 1,342 158 89.47% CAFE / PRESIDENT'S CELEBRATION 22,500 16,537 5,963 73.50% DONATION TO VFW FOR JOINT PROGRAMS 50,000 50,000 0 100.00% GREETINGS, FLOWERS, AND GIFTS 3,000 1,629 1,371 54.30% NATIONAL PRESIDENT'S SPECIAL PROGRAMS 20,000 2,000 18,000 10.00% 97,000 71,508 25,492 73.72% PAGE 8 OF 12
CONFERENCES AND MEETINGS AMBASSADORS' BRIEFING & WORKSHOP 21,500 26,646 (5,146) 123.93% APRIL STAFF MEETING 12,500 10,271 2,229 82.17% BYLAWS, GRIEVANCE & APPEALS, FOCUS GROUPS, AND OTHER COMMITTEES 15,000 1,159 13,841 7.73% DEPARTMENT SENIOR VICE PRESIDENTS' CONFERENCE / OFFICER'S PLANNING MEETING 160,000 138,234 21,766 86.40% JR. VICE NETWORKING AT NATIONAL HOME 16,500 2,814 13,686 17.05% MID YEAR CONFERENCE 90,000 70,954 19,046 78.84% REPRESENTATIVES FOR NATIONAL PRESIDENT 50,000 40,878 9,122 81.76% STRATEGIC PLANNING COMMITTEE 12,000 8,817 3,183 73.48% TRAVEL TO DEPARTMENT CONVENTIONS 65,000 48,950 16,050 75.31% VFW LEGISLATIVE VOD CONFERENCE 10,000 4,898 5,102 48.98% 452,500 353,621 98,879 78.15% PAGE 9 OF 12
2018 NATIONAL CONVENTION KANSAS CITY, MO BANQUETS AND RECEPTIONS 40,000 0 40,000 0.00% FLOWERS AND DECORATIONS 2,000 0 2,000 0.00% GIFTS 8,000 0 8,000 0.00% MISCELLANEOUS 3,500 0 3,500 0.00% NATIONAL PRESIDENT'S SPECIAL GUEST 10,000 0 10,000 0.00% POSTAGE AND SHIPPING 1,000 0 1,000 0.00% PRINTING 10,000 0 10,000 0.00% PRODUCTION AND ON SITE COSTS 150,000 744 149,256 0.50% TRANSPORTATION 30,000 0 30,000 0.00% TRAVEL 176,000 20,533 155,467 11.67% VFW CONVENTION SCHEDULE 1,500 0 1,500 0.00% 432,000 21,277 410,723 4.93% PAGE 10 OF 12
CONTINGENT EXPENSES MISCELLANEOUS TRAVEL, SPECIAL COMMITTEES AND ATTORNEY'S FEES 10,000 0 10,000 0.00% TOTAL EXPENSES $4,162,890 $2,581,478 $1,581,412 62.01% ========== =========== ============ ======== CAPITAL EXPENDITURES COMPUTER EQUIPMENT $50,000 $1,572 $48,428 3.14% FURNITURE, FIXTURES AND EQUIPMENT 40,000 0 40,000 0.00% LEASEHOLD IMPROVEMENTS 40,000 0 40,000 0.00% 130,000 1,572 128,428 1.21% DEPRECIATION AND AMORTIZATION COMPUTER EQUIPMENT & SOFTWARE 265,000 178,384 86,616 67.31% FURNITURE, FIXTURES AND EQUIPMENT 14,000 11,061 2,939 79.01% LEASEHOLD IMPROVEMENTS 10,000 6,676 3,324 66.76% 289,000 196,121 92,879 67.86% PAGE 11 OF 12
RESTRICTED FUND VFW NATIONAL HOME FOR CHILDREN REVENUE CONTRIBUTIONS TO HEALTH & HAPPINESS $80,000 $81,707 $1,707 102.13% INVESTMENT REVENUE 90,000 85,544 (4,456) 95.05% TOTAL REVENUE 170,000 167,251 (2,749) 98.38% EXPENSES ADMINISTRATIVE EXPENSES 28,000 17,364 10,636 62.01% CHRISTMAS AND GRADUATION GIFTS 7,000 6,525 475 93.21% VFW NATIONAL HOME MAINTENANCE 125,000 0 125,000 0.00% VFW NATIONAL HOME REPAIRS AND RENOVATIONS 10,000 14,651 (4,651) 146.51% TOTAL EXPENSES 170,000 38,540 131,460 22.67% NET INCOME $0 ========== $128,711 =========== $128,711 ============ ======== PAGE 12 OF 12