As Financial Vice President Tom Olcott writes in his column, the union experienced a financial decrease in the first half of 2013. Fortunately, it was extremely minor. For the six-month period from Jan. 1, 2013 to June 30, 2013, Local 802 realized a slight loss of just $746. The audited financial statements appear in the printed issue.

The union’s statement of financial activities is relatively consistent when comparing 2012 to 2013, with only a few notable changes. The most significant variance is the decrease in unrealized gains and losses, which has declined $138,748, from a gain of $69,097 in 2012 to a loss of $69,651 in 2013. The realized gain on investments has increased by $30,604 from 2012 to 2013, reflecting a gain of $35,018 on June 30, 2013. As I have mentioned in prior articles, the difference between an unrealized and realized gain or loss is as follows:

l A realized gain or loss reflects the change in market value of a security when it is sold.

l An unrealized gain or loss reflects the change in market value of a security before it is sold.

Journal advertising has also declined 38 percent, from $42,477 in 2012 to $26,160 in 2013. But this is simply related to the fact that we didn’t print a Local 802 membership directory last year. The directory is printed every other year and generates income through advertising, so every year the advertising income shifts up or down based on whether or not our directory is published. Next year we anticipate an increase in journal advertising revenue as a result of the 2014/2015 directory.

The final variance that should be explained is related to office expenses, which have increased by 46 percent from 2012. There are two major reasons for this $71,938 increase, and both are related to building repairs and maintenance. Emergency water line service was required, which accounted for close to $16,000 of the increase. Another significant expense was the cleaning of the ducts in our building, which cost approximately $32,000. The remainder of the office expense increase is a result of several miscellaneous costs that were related to general repairs and maintenance of the building. For a more detailed breakdown of all major expenses, please refer to the supplemental expense schedule.

DUES GOING UP

Please note that annual membership dues have increased by $10 for both honor and regular members. An explanation of this increase can be found in President Tino Gagliardi’s report in the September 2013 issue of Allegro. That report can be found at www.Local802afm.org.