PR: ANA Investments
ANA
FOR IMMEDIATE RELEASE: October 09, 1998
CONTACT: Stephen L. Bobbitt
STOCK MARKET DECLINES AFFECT ANA INVESTMENT
EARNINGS
Income for the first five months of the American
Numismatic Association's (ANA) fiscal year totaled $460,181,
which is far less (77.4 percent) than the budgeted projection of $2
million. During the same period (April 1 to August 31), expenses
amounted to nearly $1.9 million, or 6.1 percent more than the $1.8
million projected in the budget.
"The bottom line is, we are behind our budgeted
projections," ANA Interim Executive Director Edward C. Rochette
said. " According to our projections, the ANA anticipated a net
income of $178,715 by August 31.
"While this situation does not mean the ANA is broke, the
policy here now is that the members are entitled to know the health
of their Association. We are not where we had hoped to be
financially, but the ANA remains healthy."
The primary cause of the budget deficit is the decline in the
ANA's investment earnings following this summer's drop in the
stock market. The net worth of the ANA's $15.3 million
investment portfolio declined by $1.25 million (7.8 percent) due to
falling stock prices. By comparison, the Dow Jones industrial
average went down 12.4 percent in the third quarter of this year.
Even though the drop in expected investment earnings is
only a "paper loss," it does affect the Association's budget,
according to Rochette. However, even without the inclusion of
investment earnings, or unrealized losses, the ANA's deficit is
$234,789.
Other factors contributing to the budget deficit include:
-Unanticipated expenses over the first five months of the fiscal year
included travel costs associated with Board of Governor meetings
at both the Long Beach Coin & Collectible Expo in June and the
ANA Summer Conference in July, and legal fees from the lawsuits
pending against the ANA.
-A $50,000 drop in donations from the $150,000 projected total for
the five-month period.
-Expenses totaling $62,000 incurred in connection with the
National Money Show in Cincinnati last March but not received
until after the close of the 1997-98 Fiscal Year, March 31. Even
with additional expenses, the Cincinnati convention made a profit.
Chief Financial Officer Ruthann Brettell said, "The budget
was prepared using conservative estimates. However, even the
best-laid plans can be upset by unforeseen circumstances. For
example, when the budget was approved last March, a lawsuit by
two auction houses had just been filed against the ANA, so we
were uncertain as to how much our legal costs were going to be
this year. Then the sudden departure in June of Executive Director
Peggy Hofmann after seven weeks on the job, and her subsequent
lawsuit, were totally unpredictable."
Brettell and Rochette said they will continue to closely
monitor future expenditures, but, at this point, they do not foresee
the need for any cuts in either staff or member services.
Mitch Dickson
alone and at the same time managed to loose another $1,250,000.00 gambling,
thus actually reducing networth by $2,690,000.00 in the last 12 months.
LMAO! Marvelous! Aren't you suppose to be "studying money"? You ain't
gonna have any to study for very long! CU Mitch
John Stone
I hope they don't have to auction off the ANA museum coins in the
future to make ends meet.