The American Numismatic Association Board of Governors voted to pass a deficit budget for the Fiscal Year ending Oct. 31, 2015, during its teleconference on Oct. 30, 2014. The $5.7 million budget draws upon the ANA’s investment growth.
In her comments made when presenting the budget at the meeting, ANA Executive Director Kim Kiick said, “I’m ready to begin moving the association forward with fresh approaches to marketing, advertising and membership.” She then referenced the 2014 expenses in developing the ANA’s website and database as recent investments.
She continued: “I stand behind this proposed budget as a means to achieve these goals. The use of investment principal will help the ANA in the near term as we strive to grow the membership and improve our future. It is my concern that we see through our spending and reinvesting in the ANA to create a sustainable financial picture to carry the association well-past our years of engagement.”
In a subsequent Nov. 3 ANA press release, Kiick revised her statement to replace “investment principal” with “investment returns” to clarify that the draw would come from investment growth.
The board voted unanimously to pass the budget although ANA Governor Laura Sperber was absent. After passing the budget, ANA President Walter Ostromecki said, “Kim, you can open the doors Monday or Tuesday; we are in business still,” but stressed that the ANA needed to develop its fundraising and continue to exercise frugality in its spending.
The budget had been on the agenda for the board’s Oct. 14, 2014, meeting but was postponed.
Drawing from assets
For the fiscal year ending Oct. 31, 2015, the ANA will use 3.25 percent of its investment assets or $692,778, toward the fiscal year end operating and capital budgets.
The ANA stated in its press release that in Fiscal Year 2013, the ANA’s net worth grew by $4.1 million, to a total of $73.7 million. According to the ANA’s Form 990 for the period ending Oct. 31, 2013, which reports its assets, liabilities, income and expenses to the Internal Revenue Service, the ANA’s net worth includes the ANA Money Museum’s collection, which is valued at $36,653,493.
The majority of the ANA’s investment is from $14 million in restricted stock from the Ben E. Keith corporation, with that valuation coming from the referenced Form 990.
Budget committee co-chair Pat Heller said that the budget, while drawing from investment funds, was in-line with the goals established by the ANA Board last year. Heller stressed that projected deficit is smaller than last year’s. The budget for the fiscal year ending Oct. 31, 2014, planned for $6,350,576 in expenses. The amount included $775,595 in capital expenditures which included $625,595 for the revamp of the ANA website. That budget drew on $776,195 from reserves.
Sustainable financial health
Heller said that the newly passed budget represents “progress towards the board’s goal of reaching a balanced budget within three to give years.” He also stressed that the investment assets transferred to cover the deficits projected for Fiscal Year 2015, is less than the increase in investment assets over the past year and assuming that the rise in assets is greater than the draw from assets, “the financial health of the ANA is sustainable.”
ANA Vice President Jeff Garrett characterized the budget as “well done” and called the spending as an investment in the future of the ANA. Governor Greg Lyon, who served on the budget committee, said that the ANA was fortunate to have $20 million in investment assets and that using a sustainable portion of investment assets was responsible to provide services to members and the public. “While it may appear we’re operating on an operating deficit, we are actually working well within our means,” he added.
When the board went through line-items in the budget, Garrett inquired about museum exhibit expenses going down. Kiick explained that the ANA would be changing out its primary exhibit at the ANA Money Museum every other year.
Other line items in the budget for the fiscal year ending Oct. 31, 2015, include $1,928,500 in convention revenue, $810,000 in dues revenue, $369,000 in advertising income and $220,000 in ANA Summer Seminar revenue. The largest expenses come from salaries and employee benefits, which are budgeted at $1,812,655 and $506,000 respectively.
In reviewing budgets from five years ago, the ANA is showing a slight increase in expected convention revenue, but sharp declines in its advertising, submission center, licensing fees and sponsor revenue.
The proposed income from dues has shrank to $810,000 from the $1,052,298 in the Fiscal Year 2010 budget. ANA membership maintains to decline modestly. The ANA’s membership summary as of Oct. 9, 2014, records 26,667 members including 5,418 life members and 435 clubs. Five years ago the October 2009 issue of The Numismatist recorded 30,930 members along with 495 clubs and 5,203 life members.
More from CoinWorld.com: