Report from the Board:
Audit Report
From: LEAVEN,
Vol. 37 No. 6, December 2001-January 2002, pp. 122, 143.
Marcia Lutostanski
LLLI Board of Directors
Each year the La Leche League
International Board of Directors commissions an independent audit of
the financial operations that are based out of our Schaumburg, Illinois,
USA office. In July the audit of La Leche League International for fiscal
year April 1, 2000 to March 31, 2001, was completed by Thomas Havey,
LLP, Certified Public Accountants. To verify the financial status of
the organization, the auditors assess the financial records, procedures,
and policies of LLLI.
The audited financial statement
for 2000-2001 shows a surplus of revenue and support over expenses.
LLLI’s financials would have shown a deficit had it not been for the
real estate tax refund. Figure 1 shows a percentage breakdown of revenue
from operations and Figure 2 shows total revenue and support (see page
143).
The surplus this year is
due to a successful appeal by LLLI of an earlier classification by the
State of Illinois that required us to pay property tax on the registered
office building and land. In March 2001, we were reclassified as a charitable
organization, and therefore exempt from this real estate tax. We will
receive a refund of taxes paid from 1996 through 2000. This represents
a significant nine percent of revenue. A portion of this refund, $44,493,
was received in April 2001, with the remaining balance of $220,762 to
be paid over the next three years or so. However, the entire refund
is counted as revenue in fiscal year 2000-2001. (After the closing of
the accounts in March for this audit, we have learned that LLLI will
not be receiving a refund of taxes paid in fiscal year 1996-1997. This
will result in a decrease in revenues of almost $77,000 in fiscal years
2001-2002.)
Membership dues and subscriptions
started to show improvement for the first time in a few years. Memberships
with subscriptions brought in about $4,000 more than the previous year.
(In the US, memberships are accompanied by subscriptions to New Beginnings
and Leaven.) Membership represents not only an important source of income
for La Leche League at all levels, but also reflects a commitment made
by mothers, Leaders, Groups, and Alumnae to LLL.
The World Walk is an indication
of mission work, as well as a fundraiser for LLLI as well as Groups,
Areas, and Divisions. For 2000-2001, income for LLLI from the Walk was
up by almost $18,000 and this also meant more income for the participating
Groups. Due to careful control of expenses, the surplus of income over
expenses for LLLI was $73,703, up from $37,637 for the previous year.
We’ll keep working to improve the results for both LLLI and the local
Groups in this important fundraising and public relations effort.
Sales of materials including
books and pamphlets were almost $74,000 less than the previous year.
However, expenses were well controlled which improved the earnings from
publications.
General Contributions (excluding
those allocated to the Capital Campaign and those which were restricted
for the chaordic initiative) have been and are expected to continue
to be an increasingly important part of support (see sidebar on page
122) for LLLI operations. We realize that sales of materials and memberships
cannot be expected to fully support the many programs we envision as
we work to achieve our organization’s mission. Therefore, contributions
will continue to be a major source of funding for LLLI programs.
The organization’s financial
position continues to be strong. Current assets equal to more than twice
the level of current liabilities. The financial results achieved this
year are indeed gratifying; they would not have been possible without
the increased monetary donations and volunteer support given by our
Leaders—leading monthly Group meetings, taking telephone calls, organizing
participation in the World Walk, informing mothers about the benefits
of LLL membership—as well as the careful management and financial control
exercised in the LLLI office and in the field. Continued control of
expenses and diversification of income sources are crucial to the future
financial stability of LLLI, enabling us to support future generations
of mothers and breastfed babies around the world.
Page last edited Sun Oct 14 09:32:26 UTC 2007.
