Financial report for FY 2008-09:
The bad news:
1) Total cash inflow = $107,262.74
Total cash outflow = ($113,253.93)
Resulting in a ($5,991.19) cash basis operating loss
2) Ended the year with total debt balance = $248,500
3) Ended the year with cash balance = $9,184.65
4) Still repaying debt principal incurred as far back as 1965 (to create 260’s parking lot)
The good news:
1) House Corporation repaid nearly $46,000 of debt principal during the year
2) Made all recurring and non-recurring debt principal and interest payments on time and in-full and is aggressively paying down debt
3) Ended the year with 100% property occupancy (2 per room X 18 rooms)
4) The corporation has a clear picture of its financial position and, while not good, is steadily improving from its terribly grave financial status 5 years ago
Upcoming current FY 2009-10 challenges:
1) Current occupancy rate stands at only 85% (31 tenants). This must improve!
2) Current year projected operating loss = ~($6,600); which is an improvement over the initially projected operating loss of ~($14,400) reported to the board last month. This $7,800 betterment is the result of some near-term capital expenses not materializing as expected and the low-key alumni fundraiser underway at the moment
3) Making sure the corporation doesn’t run out of cash before it can completely pay off its two junior creditors. House Corp.’s primary creditor is the Alpha Gamma of Sigma Chi Endowment Fund, which is how it should be. The AG Endowment Fund was created in the early ’80s to loan funds to the House Corporation and in this respect is doing its job. Once the junior creditors are repaid, the Endowment Fund will be repaid its principal with interest. House Corp. is currently paying interest-only to the Endowment Fund.
In Summary: House Corp. continues to hold its own financially. It needs to carefully watch expenses, improve 260’s occupancy rate, and consider alternative cash inflow opportunities.
Respectfully,
Peter S. Asmar, MBA, CPA
Treasurer – Alpha Gamma of Sigma Chi, Inc.