4.1 - Financial Report

First, the good news.

Larry Walker's "Asheville Challenge" has raised $3950 of the $50k he challenged us to raise. Board members, please find the email that was sent last week and forward it along with a statement indicating the amount you contributed and request that others match it. A spreadsheet of our members can be downloaded in your Membership Account under the Downloads column.

According to the National Council of Nonprofits:

 
Source: https://www.councilofnonprofits.org/running-nonprofit/governance-leadership/board-roles-and-responsibilities

Now, for the not-so-good news.

Unfortunately, the first quarter bookkeeping has not been completed.
However, some significant errors from the prior fiscal year, discovered last month, have been repaired.
At the annual meeting, I reported that AIBD had $62,193.92 in total assets, which was substantially lower than the two previous years.

An updated Statement of Financial Position more accurately reports that we have $127,624.09 in total assets as of June 30, 2025.

The link to the full annual report:
https://public.3.basecamp.com/p/jGpPGhi2XT4GVp7dBTU2iVFJ

The updated financial statement (as of 6/30/2025):

As a nonprofit, AIBD operates using the Accrual accounting method.
For the most part, our bookkeeping is very similar to yours, except when we are collecting money and paying expenses for the ARDA program and the summer conference.
We begin collecting ARDA and conference registrations and paying bills in one fiscal year, and the program and event conclude in the next fiscal year. Therefore, income is recorded in a deferred revenue account, and expenses are recorded in a prepaid expense account.
Regretably, when the two registrations were set up as "products" in our QuickBooks software, I accidentally set ourselves up to apply all the income to the prepaid expense account instead of the deferred revenue account.
As a result, the Prepaid Expense account reported a $54,764 loss, thereby lowering our total assets equally.
It has taken me the last month and a half to analyze and rectify the error, as well as audit the conference and ARDA receipts against the registration platforms.
The process is finally complete, and I discovered $ 1,700 of misappropriated ARDA payments along the way.

Our current financial position:
To monitor day-to-day cash flow, the A-Team has been tracking revenue and expenses internally using the "Cash" method of accounting since the start of the new fiscal year.

I am forecasting a <$22k> loss for the first quarter of FY25-26.
This sounds terrible, and it is, but it's a typical cycle.
In the first quarter of the last FY, we spent <$38,138.29> more than we received.

Looking ahead to October:
Our next invoice includes a payment of over $27,000 to the Crowne Plaza for the 2025 summer conference.

In addition to our standard monthly expenses, a payment of $31,454.90 to VISA is due on October 16th. The automatic payment is set for $10,000, which will leave a shortfall and likely incur finance fees of approximately $500 to $600.

We may need to make a similar installment in November. However, our cash flow typically improves by December, which should allow us to pay the remaining debt in full.

I recommend we proceed with this plan, unless the board has an alternative course of action they would like us to pursue.