A caveat: I am not an accountant, but here’s the way I understand it…
Last year’s financial statement found on the website in the “news” subdirectory indicates there was no deficit. The accumulated surplus that you refer to is intact. But it’s become apparent that the yearly operating budget will be heading into deficit this year. As you probably know, rainy day stabilization funds have a tendency to disappear very quickly when there is a structural deficit occuring. Equity is not-for-profit – so things need to balance out to zero. That is becoming increasingly difficult as inflation takes its bite, working dues drop, and more and more members default on their basic dues. The new numbers will be presented at the NAGM in February 2012 in Toronto. Equity has already started to downsize its programs and is taking a very hard look at cutting some core functions should the referendum go down to defeat.
]]>Is their a deficit for the last year end? I haven’t seen any numbers around that but even so it does not address the Cash Assets of over 2 Mil.
All I am saying is that if the rational for an increase is budgetary then there should be something that shows that.
Philip
]]>I believe Kris is referring to the current yearly budget – not an accumulated deficit.
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