Report of the Treasurer
for the Year ending June 30, 2005
GENERAL STATEMENT
In fiscal year 2005 Sigma Xi's net assets decreased from $14,952,400 to $14,186,000, a decrease of 5.1% from FY2004, resulting primarily from an decrease in market value of investments. Total revenues for fiscal year 2005 were $8,111,400, an increase of $1,878,000, over the previous fiscal year of $6,233,400, primarily because of realized gains on investments in FY2005. Dues and fees decreased as membership decreased by 2,200, from 64,900 to 62,700. The membership numbers do not include the 3,300 new and reactivated members added to the Society in spring 2005 whose dues and fees become effective in FY2006. Student membership increased from 5,300 to 5,600 and emeritus membership decreased from 15,500 to 15,100. Both of these latter groups pay dues at a reduced rate.
Operating expenses for fiscal year 2005 were $6,948,800 an increase from the previous fiscal year of $78,800 or 1.13%. The increase was mainly due to expenses associated with Sigma Xi Center programs, Annual Meeting, Grant funded programs and Management and General (Support Services). Expense categories that showed a decrease were American Scientist, Membership, Development, Communications, Forum, Grants-in-Aid of Research, Special Projects and Capital Campaign.
The new Sigma Xi Science Center and Headquarters has been completed and the programs and staff are now fully functional in the new site. We now have a years experience in determining the major operating expenses for the Center. The Center operating costs represent a significant saving over the previously leased facility. The Capital Campaign Fund assets for FY2005 decreased from $2,760,600 to $2,179,000, a decrease of $581,600 or 21.07%% from FY2004.
Favorable notes were signed for the Sigma Xi Center for construction and furnishing. The Society continues to benefit from these decisions.
PERSPECTIVE
Net assets decreased slightly, as noted above. Sigma Xi's financial position remains strong. Thanks to careful fiscal management, the Society has operated with a balanced budget for the past three years. This is due in large part to the successful effort by the Executive Director to manage the Society's staff, programs and facilities with excellent efficiency and to solicit outside funds for special activities.
Sigma Xi's endowments, reflecting the effects of uncertain financial markets, are substantial and well positioned. We have engage new asset managers and adopted a stronger statement of investment policies and objectives. (See Committee on Finances report for additional information.) Over time, it is expected that our asset will grow in value. The Treasurer recommended to the Board an alternate management strategy for the Capital Campaign Fund portfolio. The alternate strategy extends the life of the portfolio several years, with the anticipation that the Society will save several million dollars. In a few years this portfolio will be exhausted. Further contributions to the Capital Campaign and Support Services & Programs endowments are means to insure the stability of the Society and the enhancement of its programs.
A continuing challenge facing the Society is to increase the membership by recruitment and retention. No matter how great our financial assets, Sigma Xi cannot fulfill its mission without new and continuing members! Secondarily, the increasing demand for services, programs and activities requires that we leverage our level of contributions and outside funding to a higher plane. I look forward, with a positive view, to working with the Development Office and Committee in sharing opportunities to support the Society.
Richard L. Meyer
Treasurer
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