Family RVing Magazine
  • FMCA.COM
  • CONTACT US
familyRVing
  • in this issue
  • tech
    • Tech talk e-newsletter archives
    • more tech talk
  • Digital editions
  • towable guides
  • Classifieds
  • contact
    • contact us
    • advertise with us
    • media room
  • FMCA

Family RVing Magazine

FMCA’s Financial Status

August 1, 2007

Treasurer’s Comments
By Jim Kern, F63208
National Treasurer
July 2007

As national treasurer, one of my responsibilities in accordance with Policy & Procedure 2027 is to “have all books of FMCA and/or its subsidiaries audited and certified annually at the close of each fiscal year by an Independent Certified Public Accountant.” This year’s annual audit was performed by Plattenburg and Associates, and the financial figures accompanying this report were taken directly from the 2006 audit report. As much as I would like to report to you that FMCA had another good year financially, I am unable to do that for 2006. Many things contributed to this, which I will touch on in this report.

Total assets decreased 1.9 percent, or $326,000, while total liabilities decreased 10.7 percent, or $360,000. A significant amount of obsolete equipment was retired this year on the depreciation schedule, which resulted in a decrease in assets.

Total overall operating revenues decreased 7.2 percent, or $1,094,486. Overall operating expenses increased 5.9 percent, or $845,716. FMCA and its subsidiary’s total operating losses for the year ended December 31, 2006, were $928,679 before income taxes.

On a positive note, FMCA’s invested reserves earned interest and dividends and increased in market value in the amount of $854,752. Earnings on reserves are added to FMCA’s operating reserve, and operating losses are deducted from operating reserves. The net results for the year were a $34,357 increase in operating reserves. We feel fortunate that the invested reserves performed well in a year of operating revenue decline.

Convention revenue increased 0.7 percent over 2005. The convention in Charlotte/Concord, North Carolina, was a nice-sized event, but given that it was a new venue for FMCA, and the association had not had a convention on the East Coast for some time, the budget was based on a larger attendance figure than that which transpired.

Magazine revenue decreased 13.8 percent over 2005. The downturn in revenue for the magazine seemed to mirror the decline in sales in the motorhome industry.

Membership revenue decreased 1.9 percent over 2005. The active count as of December 31, 2006, was 119,747 families. One step required in an audit of a nonprofit association is to do an analysis of the functional expenses to determine the actual cost of the membership services provided versus the actual administrative costs. Administrative costs were 13 percent of the total expenses in 2006, leaving 87 percent as the cost of membership services provided. This equates to the cost per member being $110 at year-end.

I would like to assure the membership of FMCA that the Finance Committee, the Executive Board, and the national office staff are monitoring the financial operations very carefully. FMCA is still financially healthy, and we consider this past year a wake-up call with regard to doing some additional planning for the financial success of FMCA in future years. FMCA’s Finance Committee and staff worked very hard to develop a proposed budget for year 2008 that we believe will correct the current operating losses. This 2008 budget has been approved by the Executive Board and will be submitted to the Governing Board in August in Redmond, Oregon, for their approval.

This is my last report to the FMCA membership as national treasurer. I have enjoyed serving you, and I am most grateful of the friends I have made along the way. I would be glad to hear from you if you have any questions or suggestions with regard to FMCA’s finances. My best wishes to all of you for safe travels. Oh, and by the way, don’t forget to tell someone about FMCA. It’s the best-kept secret I know of given the benefits we have to offer.

Family Motor Coach Association and Subsidiary Consolidated Statement Of Financial Position
                                                                                                            
Assets                                                                                                 2006            2005
            
Cash and Cash Equivalents                                                                     $809,437      $1,205,508
Accounts Receivable                                                                             136,123        351,792
Prepaid Expenses                                                                                 2,352,695      2,715,668
Merchandise Inventory                                                                         137,376         141,617
Investments                                                                                       11,001,549     10,682,077
Refundable Income Taxes                                                                     159,408         72,900
Deferred Income Taxes                                                                        394,500         35,200
Property and Equipment                                                                       1,824,696      1,936,790
            
Total Assets                                                                                       $16,815,784    $17,141,552
            
Liabilities           
            
Accounts Payable                                                                                 $130,200      $241,386
Accrued Payroll and Taxes                                                                      116,748       111,572
Income Taxes Payable                                                                           0                 13,300
Member Mail-Forwarding Deposits                                                            66,657          63,774
Convention Deposits                                                                             844,304        895,338
Magazine Deposits                                                                                61,346           73,183
Contributions Payable                                                                            78,017           0
Deferred Membership Dues                                                                    1,295,123     1,529,261
Deferred Life-Member Dues                                                                   428,881         453,587
            
Total Liabilities                                                                                      $3,021,276    $3,381,401
            
Net Assets           
Unrestricted-Board Designated           
            
Current Operations                                                                                $1,822,960     $1,956,304
Building and Equipment Fund                                                                   1,824,696     1,936,790
Building Reserve                                                                                     4,628,030     4,628,030
Operating Reserve                                                                                 4,628,030      4,628,030
Market Value Adjustment                                                                        890,792        610,997
            
Total Net Assets                                                                                   $13,794,508   $13,760,151
            
Total Liabilities And Net Assets                                                                $16,815,784    $17,141,552
            
Family Motor Coach Association And Subsidiary Consolidated Statement Of Activities
            
Revenue                                                                                                2006             2005
                        
Membership revenue                                                                               $3,810,603     $3,882,517
Magazine revenue                                                                                   6,755,189       7,838,914
Convention revenue                                                                                3,244,913       3,222,709
Commissions                                                                                           131,490          92,250
Message Service                                                                                      5,677             15,220
Road Atlas                                                                                              61,365            86,448
Miscellaneous                                                                                          156,890          122,555
            
Total Revenue                                                                                       $14,166,127     $15,260,613
            
Operating Expenses           
            
Accounting and Legal Services                                                                   $80,458            $75,516
Advertising and Promotion                                                                         260,254            299,883
Bank Service Charges/Credit Card Fees                                                         150,036           142,211
Chapter Promotions/Service                                                                        244,597           216,244
Coach Plates                                                                                            193, 945          213,165
Convention Expense                                                                                  3,142,509        2,311,249
Contribution-Motorhome Museum                                                                 78,017            0
Depreciation and Amortization                                                                      288,408          278,070
Employee Wages/Benefits                                                                           3,434,912        3,232,661
Insurance     452,182     460,549
Magazine Agency Commission                                                                       897,529          1,050,031
Magazine Representative Commission                                                             635,837          749,706
Member Directory                                                                                      212,351           200,483
Member Services                                                                                       796,710           806,817
Miscellaneous                                                                                            639,959           547,988
Office Supplies/Building Maintenance                                                            182,291            196,945
Payroll and Property Taxes                                                                          287,286           284,796
Postage                                                                                                    969,147           920,568
Printing                                                                                                    1,501,794        1,605,394
Telephone-General & Message Service                                                          134,206           175,440
Travel-Officers, Committees & Staff                                                               512,378          481,374
            
Total Operating Expenses                                                                        $15,094,806     $14,249,090
Change in Net Assets From Operations                                                      $(928,679)        $1,011,523
            
Other Income (Expense)           
            
Interest and Dividend Income                                                                   $281,456         $248,958
Net Realized Gains (losses) on Investments                                                  291,723          112,602
Net Unrealized Gains (losses) on Investments                                               281,573          (25,115)
            
Total Other Income (Expense)                                                                  $854,752         $336,445
            
Change in Net Assets before Income Taxes                                                 $(73,927)      $1,347,968
Provision for Income Taxes                                                                        $(108,284)     $391,743
Change in Net Assets                                                                                $34,357        $956,225
            
Net Assets, Beginning of Year                                                                  $13,760,151     $12,803,926
Net Assets, End of Year                                                                          $13,794,508     $13,760,151

previous post
A Life In Motorhomes
next post
It’s Harvest Time!

You may also like

News And Views

April 1, 2007

Rear View: December 2007

January 1, 2008

Committee Appointments

May 1, 2009

The California Coasters

February 1, 2007

Motorhoming Was “Dream Life” For Jim Jennings

November 1, 2007

The “Precious Moments” Park And Chapel

May 1, 2007

Premier Peaks

October 1, 2007

Wacky Camp Activities

August 1, 2007

From Yard Line To Mile Marker

June 1, 2007

Fleetwood 2008 American Eagle

September 1, 2007






  • Facebook
  • Twitter
  • Instagram
  • Pinterest
  • Youtube

©2023 - Family Rving Magazine All Rights Reserved.


Back To Top

FMCA members have access to exclusive articles and RV tips, plus a digital library of RVing know-how. For full access to website content, plus must-have travel benefits, join FMCA today and get instant access to Family RVing magazine.

If you already have a membership with us, sign in now to get full access!

Join Now Sign In