Overall the expenses for the year exceeded the projected budget established by the finance committee and the Board of Directors. The audit shows that our Fraternity budgeted for a deficit of $8,800. The deficit was actually $23,817.
While we were able to exceed our budgeted revenues for AAMD and Initiation registrations, we fell short in Pledge registrations, leaving us with a shortfall of $5,217 (this reflects a 98.3% achievement of our budget). Another item where we fell well short of our projections was in the area of Merchandise Sales. We only realized of our budget for the year.
Last year we had a dismal report on our fund raising efforts. I don't have to say that this year. The Finance and Fund Raising Committee initiated new processes to monitor giving, and changed the style in which we asked for donations. Our efforts were rewarded by achieving 137% of our budget. A very good success story.
On the expense side, we had a number of items that were well over budget. As many of you may know, four members of our staff left and had to be replaced. Personnel salaries were over budget due to higher entrance rates for the new staff Telephone costs exceeded budget due to rate increases and the introduction of e-mail services to the National Office in the middle of the year.
Directions from the last National Convention to improve the presentation of the Torch & Trefoil periodical resulted in expenses far exceeding original estimates. We are attempting to replace some of the necessary design features with a more economical operation.
In the determination of our bottom line, caution should be taken not to include the revenues listed for the APO Youth Program, the John Mack Scholarship Fund, or the R/R Program. These are designated funds and cannot be considered in the operating funds of the National Office.
We have huge steps to take in securing our fiiture. We are taking steps to endow our National Office and grow the Fraternity. We have programs that the Finance Committee has had to deny because of a lack of revenue. We need to concentrate on growing our operating fund so that you, the chapters, can reap a larger return on your investment. We have come a long way, and we have a great deal of opportunity before us. We need your continued support to make the dreams of Frank Reed Horton materialize. Thanks to all of you who have helped make this a success thus far, and thanks in advance for your future support.
The financial statements reported herein are a summary of the Fraternities' position as of August 31, 1996. Complete financial statements are on file at the National Office and have been audited by a national CPA firm.
Note: A Detailed Annual Financial Statement and Report was included in this edition of the Torch & Trefoil, but was not included in the internet version due to complex nature of conversion :-)