  December 2002  Volume XVIII Number 6 |
December 2002 Volume XVIII Number 6 |
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Welcome to the first installment of Java with Jim. This will be a regular column in the Rocky Mountain Exchange this next year where I, as your president, will communicate various activities, ideas, thoughts,  and information which will be hopefully helpful and enlightening to you and the RMASFAA membership. Why the title, Java with Jim? Well, as some of you who have attended the RMASFAA Summer Institutes at Colorado College know, I made it my morning ritual to wake up early from my cozy little dorm room in Loomis Hall, wander down to the lobby, and make coffee and tea for all those needing rejuvenating beverages. Although I won't be able to do the same via The Exchange, I hope when you sit down at your computer to read the association's newsletter, you pour yourself the restorative beverage of your choice, sit back in your comfortable office desk chair, relax, and enjoy reading about what promises to be a fantastic year of the Rocky Mountain Exchange with Molly Williams as chair of the Association News Committee. In my discussions with members of RMASFAA over the past month, probably the biggest topic of discussion around the region is concerning the association's finances and 2003 budget. Anytime there is a proposed increase in revenue whether it is in dues, vendor fees, registration fees for conferences or the summer institute, it peeks people's interest. Now I know why we seldom hear from politicians who announce tax increases. It is a tough sell especially during times when budgets are being cut at the institutional level. I hope in the next few paragraphs I can paint a clear picture describing where we are financially and where your money will be expended this coming year. Nearly 92% of our operating income comes from four main sources: Summer Institute (42.46%), Annual Conference (24.28%), Decentralized Training (17.61%), and Membership Dues (7.13%).  We depend heavily on these revenue sources to fund other non-income producing activities of the association. These other budgeted expenses, which the association incurs, are for other committees besides the Summer Institute, Annual Conference, and Training Committees. These non-income producing committees expend approximately 10.08% of the budget, the Board of Director's meetings expend 9.76% (our corporation Bylaws state we must meet periodically as a governing board), officers of the association expend 5.87% (it costs money for the president and president-elect to travel to state conferences and to represent your regional association at various meetings). The remaining 75% of the expenditures are incurred by the Summer Institute (36.48%), Annual Conference (21.83%) and Training Committee (15.98%). When these activities do not produce income that exceeds their expenditures, it impacts other activities (or reserves) of the association. Our budgeted expenses for the association total $265,950 for 2003.  Your 2003 Board of Directors is an outstanding group of dedicated individuals who are building on the foundation of previous Boards to ensure that our Association remains fiscally sound, which it is. In addition to looking at ways to increase revenue, the Board has taken the first steps in its fiduciary responsibilities by preparing a budget that reduces Association expenditures by more than $60,000 or 18.6% compared to the 2002 budget. These cuts will primarily come from areas such as the temporary reduction or suspension of the annual Board planning meeting (resulting in a reduction of 38% in that specific line item), Reflections publication, and the Road Rally. In other areas such as the Summer Institute, Decentralized Training and Annual Conference, we will look for ways to economize without affecting the quality of programs which are core to our mission of "promoting the professional preparation, leadership development, effectiveness, and mutual support of persons involved in the student financial aid administration." These actions were deemed necessary as we have had to liquidate over $60,000 in our unrestricted reserves to pay expenses this year. While we continue to have a healthy reserve, this trend of liquidating our "rainy day" fund cannot continue at the current rate for too many more years. At the end of October, our reserves totaled $179,725.15 ($114,600.64 in restricted, $64,990.60 in unrestricted and $133.91 in money market fund in the reserve account.) We have a cash balance of $34,083.68 in the checking account. We currently have expenses approximating $35,000 left to pay from the Annual Conference, Decentralized Training, and Summer Institute committee planning meeting by the end of the year. While we continue to be financially sound, we do rely on income from membership dues this time of year to keep a positive balance in our checking account. You will be receiving your RMASFAA membership renewal notice in a few weeks. I urge you to consider paying it as soon as possible to insure that the association has a positive cash flow in the New Year. Well my friends and colleagues, this first Java with Jim probably went on too long but I felt it important to describe our financial picture with you. Certainly if you have any questions concerning this, you can contact me at jswanson@coloradocollege.edu or by calling me at (800) 260-6458. It will be a challenging but exciting year ahead with many wonderful opportunities for you to participate in RMASFAA activities. I hope you do so with excitement and eagerness to share and learn from your fellow colleagues. I wish the best to you and your families during this holiday season. I do hope you make time to spend with the people you love. May the coming year bring peace and happiness to you and your loved ones. Cheers- Jim
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