For the six-month period ended June 30, 2012, Local
802 realized a gain of $233,749. The audited financial statements for the
six-month period appear in this issue of Allegro on page 38 of the printed issue

The first six months of 2012 show little change
when compared to 2011. The new accounting system has improved the process of
recording revenue by providing more detail as to when the event occurred, which
has resulted in a more accurate depiction of the actual work dues generated for
that period.

The new system also ensures the data is entered in
a more timely and accurate manner, which is why the statement of financial
position shows a drastic decrease in both work dues and other accounts
receivable. When comparing June 30, 2012 to 2011, the combined receivable
balances show a decrease of 51 percent, which is $476,007 lower than last year.

The realized gain and unrealized appreciation on
investments have also showed a significant change when comparing the two
six-month periods of 2011 and 2012. A realized gain or loss can only be recorded
when an investment is sold, which is different from an unrealized gain or loss
which reflects the change in market value of a security before it is sold. The
realized gain on the sale of investments has decreased by $26,104, which is an
86 percent decrease from $30,518 in 2011 to $4,414 in 2012. This decrease is
offset by the increase in unrealized appreciation of investments, which has
increased from $17,098 in 2011 to $56,512 in 2012.

Another notable change in the comparative financial statements is the Allegro
journal advertising revenue and expenses. Allegro journal advertising has
increased from $30,948 in 2011 to $42,477 in 2012, which is a 37 percent
increase. The expenses have also increased by $9,365, which is mostly
attributable to the increases in both postage and printing costs. I would also
like to note that Allegro has placed number one for general excellence in the
national contest of the International Labor Communications Association in both
New York City and the Country, so congratulations to both Mikael Elsila and all
those who contribute to Allegro.