From the OAH Treasurer

Fiscal Year July 1, 2002 - June 30, 2003

Robert W. Cherny

In this, my first report as treasurer, there is almost entirely good news to share. My report is drawn from the annual accountants’ report, which includes an audit, and from a less formal summary prepared by the OAH business manager.

Table 1. Statement of Financial Position
Table 2. Statement of Revenue, Expenses and other Changes in Net Assets
Table 3. OAH Investments

Total Assets

The annual accountants’ report indicates total assets at the end of the 2003 fiscal year of $2,837,831, as compared to $2,238,892 the year before. Of the current assets, $27,760 are in property and equipment, net of depreciation and amortization. In addition, $136,421 is in receivables and $4,739 is in other assets. The remainder is divided between operating cash, in the amount of $519,180, and investments, $2,149,731.

Revenue

Total revenue, including the endowment and investment funds, was up by 20.6 percent, from $2,242,408 to $2,704,881.

As shown in Figure 1, our largest source of income continues to be dues, which totaled $963,840, an increase of 2.1 percent over the previous year.

Revenue from both institutional subscriptions and individual memberships was up from last year, but revenue from institutional subscribers increased by 4.7 percent compared with 0.6 percent from individual memberships. Several other revenue categories also showed increases over last year. Advertising revenues were down somewhat, especially for the OAH Newsletter and the Annual Meeting Program, but they were up for the onsite program and for the OAH Magazine of History. This change in advertising revenue likely reflects the overall economic situation. The biggest category of increase for the annual meeting came in preregistrations. Revenue from grants and collaborative projects was up largely on the basis of increases in the National Park Service collaborative projects and three new projects. The other largest increases in revenue came from lectureships and general contributions, which more than tripled, reflecting, in part, an increase in expenditures on fundraising.

Endowment Fund and Investments

The accountants’ report shows the net assets for our endowment fund, the Fund for American History, and the prize fund:

Between 2002 and 2003, these funds were shifted from a mix of various securities to a mix of mutual funds administered by Wells Fargo Bank. Based on the benchmarks set by the bank for each mutual fund, all are performing well. I have begun to familiarize myself with these investments and hope in the near future to create an advisory committee on investments.

Expenditures

Total expenditures were up by 12.1 percent, from $2,333,656 to $2,617,140, and the major categories of expenditures are shown in Figure 2.

The biggest increase in expenditures, and the biggest variation from the projected budget, was in grants and collaborative projects, where the increase represents success in securing more or larger grants and collaborative projects and is more than offset by increased revenue from this source. The cost of the annual meeting was very similar to last year, contrary to budget projections that had anticipated reduced attendance in Memphis.

Audit Recommendations

The past and current accountants’ reports have included a series of recommendations for changes in the organization’s bookkeeping procedures. The most important, from a year ago, was to convert bookkeeping to the accrual method of accounting, something that was accomplished last year. A number of other recommendations from the previous report addressed office procedures for handling monies, all intended to safeguard the organization’s funds. Those, too, were implemented during the 2003 fiscal year. This year’s accountants’ report again includes a few additional recommendations for changes in procedures having to do with safeguarding funds. Executive Director Lee Formwalt has developed responses to those recommendations which, in my understanding, should completely accomplish the objectives of the recommendations.

The Bottom Line Fiscal Year 2002-2003

The accountants’ report shows the following comparison of revenue and expenses for the past two fiscal years:

Thus, judging by the bottom line, fiscal year 2003 was clearly a good year for the OAH.

Outlook for Fiscal Year 2004

So far, in the current fiscal year, the organization is in a stronger position than it was a year ago at this time. Revenue from memberships is up, and so are contributions and grants. Advertising continues to lag. Income from National Park Service projects will be significantly lower than anticipated because there has been no increase in the number of projects, a circumstance due in part to the tightening of the federal budget.