Report of the Treasurer
for the Year ending June 30, 2009
A balanced budget of $5,923,215, as recommended by the Committee on Finance, was approved the Board of the Society for FY2009. Total revenues beyond dues and fees and other sources included a policy based 5% of the 12-trailing quarters withdrawal plus an approved additional withdrawal of 4% from the Sigma Xi Endowment Fund. The total endowment withdrawal was $1,348,261. Actual end-of-year total revenue from all sources was $5,594,217 or $328,968 less than budgeted. Income from dues and fees, contributions and the American Scientist were less than anticipated. Operating expenses were well controlled and less than allocated in all areas except Grants-in-Aid of Research. Total expenses, including the Sigma Xi Center, were $5,269,289 or $653,926 below budget. Excellent management and cost control under challenging financial condition resulted in a net surplus of $324,958.
Budgets and financial reports are directly available by selecting Members >> Members Only >> Member Information >> Society Financial Information section on the Society's Web site. The FY2009 and FY2010 budgets are presented in a "Statement of Operations" format so that the end-of-year budgets can be easily compared with the audited and approved "Statement of Operations." The auditors report and the report of the Committee on Audit Review for FY2009 must be approved by the Board of the Corporation before posting. These reports will be released after the corporation meeting on November 11, 2009.
The Sigma Xi Endowment Fund began the fiscal year with a market value balance of $12,672,598 and an ending balance of $9,958,131. The reduction of $2,714,467 included the withdrawal for operation activities and capital losses as well as additions of interest and dividends and capital gains. Primary loss in market value occurred during the first quarter. Some progress was noted during the second and fourth quarters. The investment policy and portfolio allocations position us to continue to recover from prior losses during the following fiscal years.
A balanced FY2010 budget of $5,200,877, which included only interest and dividends from restricted endowment fund income along with delegate dues and fees and conservative estimates of other income, was recommended to the Board. Expenses were controlled to match the revenues. After extensive review the Board expanded to budget for American Scientist and certain program areas. The investment income of interest and dividends is $404,460. To achieve a balanced budget revenues were supplemented with a cash withdrawal of $109,598 from the Emeritus Knowledge Center Fund. The final FY2010 budget of $5,447,961 reflects an increase of $178,672 above the previous year's actual expenses. This adjusted budget can be viewed on the Sigma Xi Web site by following the instructions given above.
The dues and fees structure and associated amounts for FY2011 are retained at the FY2010 levels. A motion to establish the dues and fees for the next fiscal year will be presented to the delegates for their review and approval.
The Treasurer will provide addition comments and further detail during his presentation to the Assembly of Delegates. He will, also, be available throughout the annual meeting.
It has been a high honor and great privilege to serve the Society for two terms as Treasurer. I thank you for your insights, recommendations, advice and the support that you have given me during this very dynamic period. The new Treasurer has my warm regards and strong support as he assists the Society in moving forward.
Richard L. Meyer
Treasurer
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