Exhibit 1113
REPORT OF THE TREASURER
.. . . .. . · .. · .·; ' ; • .
. . ..'l~O. THE· MEETIN.G · . .OF .. THK. INTERNATIONAL BOARD- OF TRUSTEES . . February 1 and 2, 1982
The Statement of Financial Position at December 31,.1981 indicates that we have Unrestricted Current Assets of $1,'478,411, Fixed Assets of $405,462, less Accumulated ne·preciation of $196,165, for a total Net Fixed Assets· of
$209,297. These Assets, both Fixed and Current, total $1,758,711.
Against these Assets we have Liabilities totaling $1,879,568, leaving this organization a Net Worth deficit of $120,857. in Unrestricted Operating Funds.
We have, in addition, Board Committed Reserves of $5,170,025, for a total Net Worth in all funds of $5,049,168. This compares to a total Net Worth of $1,823:,586 at December 31, 1980.
Our investments from out total· Net Worth in $TAM accounts_:· of $2,991,982, and a checking account bank balance of $264,130 (checking account balances are free $131,370, and restricted $132,760), provide a total ~ash position of
$3,256,112.
Respectfully submitted,
Aubrey E. Irby
· · • . ' t
i
I
GL430 KIWANIS INTERNATIONAL
STATEMENT Of FINANCIAL POSITIONS DECEMBER -- i9oi
UNRESTRICTED FUNUS:
CURRENT ASSETS:
CASH (U.S. I
CASH CNUN-U.S.J:
BANK OF MdfHREAl, tANAii"A ___ ---·
TORONTO-DOMINION BANK, CANADA
BANCO SHAW, ARGENTINA
RIZAL COM~~ ~A~KING toR~, ~Hiiit~i~E~
BANCO OE LA COSTA BANK OF AMERICA-INDIA
SHORT TERM i1NESTMErfrs-·-·-··---··
ACCOUNTS RECEIVABLE (U.S.) ACCOUNTS RECEIVABLE (NON-u.s.a:
BANK ACCOUNT - jAMAiCAN
FUNDS
BhNK ACCOUNT - KOREAN FUNDS BANK ACCOUNT - K. (. E.
DOUBT i=iJL ACCOUNTS. -- . -·-···--··-··.
lNVENTORI ES ACCRUED INTEREST PRE:PAio EXPENSES
PREPAID LIABILITY INSURANCE
!JEPOS ITS ADVANCES
TOTAL CURRENT ASSETS CURRENT LIABILITIES:
~CCOUNTS PAYABLE ACCRUAL
s ..
AMOUNT DUE TOil FROM) RESERVE DEFERRED INCOME
TOTAL CURRENT LIABILITIES
--N/A-- --NIA-- --N/A--
~-NiA-..: -
--NIA--
Unrestricted . --:: l ~~ ?--:--:
(l 5,105)
14,045-
132,430
55,332 951
··-·•··-·---NI A-- ____ _
9,007 1,326 . . 0 -·-·
405,992
--NIA-- 61,003
--NIA-- 5,141
--NIA-- 373
···- . . . .(45,000)
542,227
··-··· - {1,~1Q)_
18,226 175,739 90,425 . . . . 33,669
---
-·- ________ .lt~78,4H
·----~h28~-- 75,150 311,723 l,294,115
---
1,808,277
> - h • • • - ~ - • • ~---• • - - - ~•---•
WORK ING CAP ITAL:
FixED ASSETS:
LANJ, BUILDING, FURNITURE, EQUIP.
LESS: ACCUMULAT~q DEf>i!_~<::t~Tl.P"t.
TOTAL FIXED ASSETS OTHER ASSETS:
DEFERRED COMPENSATION . - - OTHER LIABILITIES:
DEFERREO COMPENSATION TOTAL FUNDS
(329,866)
405,462 _196,165
---
209,297
71,003
71,291
(120,857)
---
Unrestricted
~---l9ei---::-
123,576 10,731 114,792 .. 2, l53 34,540 8,212 Q 0 328 ,C33
F~nded Reserve Fund,
0
--- - ---- o·
0 0 0 0 0 111,167
. 0
41,906 0
2 I 189 0
--- 3l ,681. ·-- ---·-. ·--··--- 0
(35,0000 0
503,249 O
{hl58) ____ ... ?,~7~
12,620 O
0 0
______ .... 9 6 _, s 11 _________ ·---· o_.
86,297 0
l ,~5.Q ,~98. ll(;i,(;i4~
-·-·- --
~~.
: __ .. "
· .. Building
·Fund
0
0 0 0 0 0 0 . . . 2·,880 ,815
- - - ~ - --➔--➔• - · --
·•,•. '.
. 200,000 0 0 0 0 0 35,412 0 0 0 0 .),116,227
_9~,:417..
150,126 386,309 . 67,946
--- __________ Q ___ ··-·- ·-• __ 3ij,000
---
698, 798
659,600
1,724,605 56Q .~19
---
1, 163,986
_75,900
75,900
l, 823,586
0 .· 0
(372,922) 1,119
0 ,: · 0
.. ---;---
(372,922) 31,199
- - H - - - : - - - • • • - • • - • - • • • - - _ _ _ . . .. _ _ _ =.•-•• .. ~--➔ • 489,567
0
·-- _ o
0
0
0
489,567
=======
.'},08.5 ,028 _:j ...
J,595,430 0 ' .
··---~- --· --
~--595 ,430 -~· -
0
0
4,680,458
--- ---
Total Funds (15,105)
14,045 132,430 951 55,332 9,007 . _ ). ,326 2,991,982 . 605,992 61,003 5,141 373 (45,000) 542,227
33,520 18,226 175,739 90,425 33,669 4,711,283
97,289 75,150 0 1,294,115
---
1,466,554
3,244,729
2,000,892 196,165
---
1, 804,727
71,003
71,291
5,049,168
--- ---
:l
11 II 10
i :1
;..., ,
BEGlNNING FUND BALANCES
EXCESS/ (IJEFICIENCY) OF REVENUE OVER EXPENSI!:
ENIJI.NG FUND BALANCES
KI\/ANIS IUTE RNATIONAL
STATEMEUT OF CHANGES IN F'llND BALANCES
MONTH OF December 1901.
- - - - ---·-- ··--.---,---Funded
U1,rcstricted-
j
Rel'u·1·vej
BuLldl.ngj
TotalFund _ __ Fund -· _____ Fund ___ Funds
(22,236) 4M,0Q8 4,649,483 15,111.335
Unrestricted Fund
(72,539)
-~ ..
t,i
XEAR-TO-DATE December 1981
.fun-Jed·_
~eservli:!
Fund
-~n ..
2_92·n••·
·:•·
.·:
:•;
BuUding Fund
Total Funds
'• • 5 6 1 ,
a
30 I 4_, 9 6a ,
5a
3______ (9aJ;2u '---- 5~'•7'L __
J. ___
~·JO.L97LJ ___ (62._1rn.:_J <48,318)I
:16~.2'75I
112.62aI
ao.5ss( 120, B5'7) 11 s·9. '.i(i 1 '•, 680 ,/1'>8 5 , 0/19 . l 6 8 (120,857) 4·8_9 ~56 7 4,680,458 5.049,168
--···
: I
1....,.
i'
f"REPORT OF BOARD COMMITTEE ON FINANCE
TO THE MEETING OF THE INTERNATIONAL BOARD OF· TRUSTEES
Date of Committee Meeting: January 28 and 30, 1982 Place of Committee Meeting: General Office
Present: Members - Aubrey E. Irby, Gene R. Overholt, Donald E. Williams Chairman - Raymond W. Lansford
Staff - Leslie M. Atwood, William P. Berry, J. William Kleindorfer Larry Smolecki
1. Summary of Special Finance Committee Meeting
A joint committee of Aubrey Irby, Raym0nd·Lansford, Gene Overholt, Don Williams, Past Presidents Roy Davis, Stan Schneider and Robert Weber, International Secret'ary J. WilliamKleindorfer, Finance
DirectorWilliam P. Berry, and Larry Smolecki met December 4-6, 1981, to review financial problems facing Kiwanis International.
President McKitrick and President-Elect John Roberts were major participants in the discussion. The agenda consisted of three topics: the financial condition of Kiwanis International; how to balance the 19 81-82 ·Budget; and long term financing for Kiwanis International.
The Past Presidents, Board· Members and staff reviewed items which total $165,376, thus providing a positive variance
of $1,124. These proposed adjustments were accompanied.by suggestions of strong curtailment of all unnecessary expenses by Board Members and staff throughout the fiscal year. Deliberations from that meeting are a part of this Committee report.
Recommendation #1:
The Committee recommends that the previously approved 1981-82 Budget with a deficit of $164,252, be adjusted to a surplus of $1,124.
I move that recommendation 1 be adopted.
(Adopted) Recommendation #2:
The Committee recommends that with a presently balanced budget, each department must stay within its budget. If the budget is to be exceeded, prior approval must be obtained from the International Secretary, the Finance Committee, the Executive Corr.mittee.
I move that recommendation 2 be adopted.
(Adopted)
-2- 2. Inter-fund Borrowings
. .
Borrowings by the Unrestricted Fund from Reserve Funds, presently require advance approval of the President and Treasurer by order of the 1981 Board resolution. · The Committee recommends modifying this procedure to substitute the Executive Committee who functions for the Board between regular Board Meetings.
Recommendation #3:
The Committee ·recommends that prior to the Unrestricted Fund borrowing of any Reserve Funds, approval be first obtained from the Executive Committee.
I move that recommendation 3 be adopted.
(Adopted) 3. Funded Reserve
To cla::rify the inter-fund financial .statements,· the· Funded Reserve Fund should be returned to the ·Unrestricted Fund. Presently, the Funded Reserve has- only an "IOU" from an inter-fund ·transfer and will not have cash added during. the 1981-82 year.·
Recommendation #4:
The Committee recommends that the Funded Reserve Furid and its assets be transferred to Unrestr:i.ct'e~d Fund and the Funded Reserve Fund be deleted.
I move that recommendation 4 be ad0pted.
(Adop_ted) 4. Gift Program Study and Other Items
The Committee discussed the financial condition of· Kiwanis International as it relates to major gifts, frozen funds in financially restricted countries and travel limitations which apply to Board arid staff.
There is $132,760 i~ six countries which cannof be transferred to Kiwanis International for budgetary use. It is desirable· to use these fund$ for travel, supplies and/or any other items during 198i-82.
The Committee believes a major gift program should be started to encourage Kiwanians and others to make available funds to Kiwanis- International for future use.
The Committee has requested staff to establish contacts with major Indianapolis banks for banking and future loan requirements.
5. Write-off of Uncollected Receivables
Amounts uncollected from non-meeting clubs total $4,884 .. 15.
Of this uncollected amount $1,170.09 is from clubs whos.e ch_arters were revoked at prior Board meetings, and $3,714.06 is fromcl.ubs whose charters were revoked at this Board meeting.
Recommendation #5:
The Committee recommends that $4,884.15 in uncollectible accounts from clubs whose charters have been revoked be written off.
I move that recommendation 5 be adopted.
(Adopted)
6. Standard Operating Procedure for Prorata Billing
The Committee was asked to review a procedure for pro rata billing for new clubs and found it acceptable.
7. Ghanges in Bank Signatories
New personnel on staff necessitate updating of bank signatories.
These forms will be presented at this-Board Meeting.
8. Subsidy to Circle Kand Key Club
The Board previous1y authorized a subsidy for 1980-81 to pay for salaries of Circle K staff of $39,475. Circle K, however, by virtue of a deficit, actually spent $68,891. In the year 1980-81 Kiwanis International paid for non-subsidized expenses. o·f $29,416.
The Board also previously authorized a subsidy for 19 80-81 to pay for salaries·
of Key Club staff of $95,995;· Key Club actually spent $79,692, which created a surplus of $16,303.
The Finance Committee then discussed the need. for a standard procedure for the subsidy of Circle Kand Key Club on long term basis. The staff was instructed to study the.problem of subsidy overru;; and to develop a procedure to better control such action in the future and to assist both organizations in operating within their approved budget.
-4-
9. Life Membership Fees
The Committee discussed. the use of Life Membership Fees being absorbed in cur.rent· income since 1974. The use of Life Membership Fees as current income deprives applying the fees to future years cost of Life Members.
The Committee instructed staff to determine a plan whereby the Life Membership Fees be invested to. earn interest •income; such a plan to include a sound accounting po~icy for the-application of the principal
~nd interest earned to the. future costs of existing· Life Members.
The plan is to be submitted at the April 1982. Board Meeting.
10. Dues Increase - 1982 Minneapolis Convention
In evaluating current operating income, it has been noted that the main source of dollars for income is membership dues. It was also noted that membership for the past five years has not changed significantly:
Year Members hi:e
19 76-77 277,000
19 77-78 285,000
19 78- 79 287,000
1979-80 287,000
1980-81 288,000
The.co,st for operation of Kiwanis International has ,continued to rise even though staff has been reduced in number, travel and inventory costs have been reduced, inflationary and other operational costs continue to- increase. The limi'ted growth and income from various previous levels of dues are projected to remain about the same.
Recommendation #6:
The· Committee reconunends that the membership due·s of
$10.00 be increased by $5.00 to $15.00, effective . October 1, 1982; that· the Board Committee on Laws and
Policies prepare an amendment for presentation_ to the House of Delegates at the International Convention in Minneapolis, June 27-30, 1982.
I move that recommendation 6 be aqopted.
(Adopted)