2001--02
NBUW's finances continue strong, but in several ways this was a revolutionary year. We continued a lean operation with the equivalent of 2.1 staff (including part-time Executive Director), and managed our expenses effectively. Volunteer leadership was provided this year by Charles O'Brien our 1st vice-president; Ed Nimmons Treasurer (completing his 18 th year in that position); Dick Lamb, Chair of the Investment Committee; and Virginia Smith, Chair of the Planned Giving Committee. Our vice-president for Finance stepped down in July, but the people just listed filled in admirably. Under their leadership, there were numerous changes and highlights, with the operating loss being the one lowlight:
• New quarterly financial report formats are clearer and more consistent with audited financial statements
• With assistance from our auditors, Smith, Watson & Company, the Board planned to change NBUW's fiscal year from 1/1-12/31 to 7/1-6/30 and decided on significant changes in accounting principal . To make the year shift, NBUW will have a "short year" from January through June of 2002, starting the first new full year in July '02. The changes in principal will be reflected in the "short year" statement (available in July or August 2002) and in each year thereafter. They will cause NBUW to treat planned allocations and designations as liabilities as soon as they are decided upon. The changes will make NBUW's finances more understandable and easier to manage.
• We suffered an operating loss of $51,911 due to a decline in campaign revenues and increases in allocations, uncollectible pledges, and gifts designated to other United Ways. Expenses came in on budget, and compared to the prior year, NBUW's overhead-to-revenue ratio dipped to 16.8%, better than the 20% level considered good for United Ways of our size
• We formed an Investment Committee for the first time ever, approved an investment policy statement, and retained True North Financial Services on a pro bono basis for investment advice. NBUW now has about $475,000 under management, and though for the year the portfolio lost $13,995 in value, it outperformed the Board's benchmarks by about 3% and produced $20,326 of interest and dividend income.
• The Planned Giving Committee met several times early last year and came to the conclusion that, though it is urgent for NBUW to have strong planned giving program, the organization is too small to sustain an effective program on its own. There are several organizations with whom NBUW could collaborate, but the Committee paused in its work to allow NBUW's Executive Committee to sort our strategic alliances with other organizations.
Copies of NBUW's audited financial statement are available from the office at 85 Main St. in North Adams, or by contacting our auditors, Smith, Watson & Company, LLP.