58th General Service Conference Finance Presentation

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Transcript 58th General Service Conference Finance Presentation

AROUND THE PICNIC TABLE

Finance Presenter: David M. Morris, C.P.A.

Class A (nonalcoholic) Trustee General Service Board Treasurer

COMMUNICATING TO THE FELLOWSHIP ABOUT FINANCE

      

Spiritual value of contributing Services provided to the Fellowship Publishing Grapevine and need for subscriptions growth La Viña Transfer from Reserve Fund to Pension Plan Liability Fund Humanize Reserve Fund ownership



Not $15.3 m: $236.52 per group, $11.01 per member 1

GENERAL SERVICE BOARD FINANCIAL SUMMARY OF OPERATIONS 12-31-13 G.S.O.

GENERAL FUND THE A.A.W.S.

PUBLISHING THE A.A.

GRAPEVINE LA VIÑA 2013 COMBINED ACTUAL REVENUE Net Sales Contributions Interest TOTAL REVENUE EXPENSES Printing Royalties Shipping & Warehouse Program Expenses Supporting Services TOTAL EXPENSES NET INCOME (LOSS) OPERATIONS 6,906,371 114 6,906,485 5,751,387 3,756,195 9,507,582 (2,601,097) $12,604,719 390 12,605,109 2,962,241 27,840 1,505,296 3,200,822 2,276,259 9,972,458 2,632,651 $3,019,339 10,500 3,029,839 402,183 623,640 1,097,907 590,904 2,714,634 315,205 $127,270 127,270 RESERVE FUND Reserve Fund Balance at December 31 available to cover operating expenses Operating Expenses Number of months Operating Expenses-approximate *Excludes non-operating Funds: Reserve, Capital Projects, Pension, Post-Retirement Medical Benefits 33,544 30,192 206,078 269,814 (142,544) $15,751,328 6,906,371 11,004 22,668,703 3,397,968 27,840 2,159,128 10,256,194 6,623,358 22,464,488 204,215 15,301,653 16,879,552 10.9

2012 ACTUAL $15,536,458 6,557,608 15,266 22,109,332 3,401,992 27,161 2,215,000 9,796,825 6,374,725 21,815,703 293,629 15,353,752 16,228,337 11.4

GENERAL SERVICE BOARD FINANCIAL SUMMARY OF OPERATIONS 12-31-13 G.S.O.

GENERAL FUND THE A.A.W.S.

PUBLISHING THE A.A.

GRAPEVINE LA VIÑA 2013 COMBINED ACTUAL REVENUE Net Sales Contributions Interest TOTAL REVENUE EXPENSES Printing Royalties Shipping & Warehouse Program Expenses Supporting Services TOTAL EXPENSES NET INCOME (LOSS) OPERATIONS RESERVE FUND 6,906,371 114 6,906,485 5,751,387 3,756,195 9,507,582 (2,601,097) $12,604,719 390 12,605,109 2,962,241 27,840 1,505,296 3,200,822 2,276,259 9,972,458 2,632,651 $3,019,339 10,500 3,029,839 402,183 623,640 1,097,907 590,904 2,714,634 315,205 $127,270 127,270 33,544 30,192 206,078 269,814 (142,544) Reserve Fund Balance at December 31 available to cover operating expenses Operating Expenses Number of months Operating Expenses-approximate *Excludes non-operating Funds: Reserve, Capital Projects, Pension, Post-Retirement Medical Benefits $15,751,328 6,906,371 11,004 22,668,703 3,397,968 27,840 2,159,128 10,256,194 6,623,358 22,464,488 204,215 15,301,653 16,879,552 10.9

2013 BUDGET $15,562,535 6,697,000 17,050 22,276,585 3,534,902 28,000 2,332,221 10,737,010 6,370,792 23,002,925 (726,340) 15,301,653 17,107,927 10.8

GRATITUDE

2012-2013 CONTRIBUTIONS SUMMARY

2012 2013

Group Contributions $5,451,874 $5,718,306 Specials

Individuals 582,011 629,542 384,055 398,880 Foreign, WSM etc.

67,403 73,800 Memorials 51,418 63,178 Special Meetings

Other 16,571 4,276 12,815 9,850 Totals 6,557,608 6,906,371

Special contribution is one that comes from any number of A.A. entities that is not an A.A. Group, for example, a Conference, a Committee, an Area, a District, an Intergroup, etc.

A Special Meeting is a meeting that does not want to be a group but does want to contribute to the General Service Board.

$8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0

CONTRIBUTION HISTORY: 1983—2013

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% T o t a l C o n t r i b u t i o n s T o t a l P e r c e n t a g e o f Gr o u p s C o n t r i b u t i n g 6

PERCENTAGE OF GROUPS CONTRIBUTING 2003—2013

45.50% 45.00% 44.50% 44.00% 43.50% 43.00% 42.50% 42.00% 41.50% 41.00% 40.50% 2003 2005 2007 2009 2011 2013 Total Percentage of Groups Contributing

THROUGH OUR OWN CONTRIBUTIONS

A DOLLAR IS NOT WHAT IT USED TO BE

1945 2014

INFLATION CALCULATOR $1.00 in 1945 had the buying power of $13.00

in 2014

$ .08 in 2014 had the buying power of $ 1.00

in 1945 Source: U.S. Department of Labor 10

GSO’s TWO BASIC FUNCTIONS

• Publishing • Services on Behalf of the G.S.B.

Group Records 11

GENERAL SERVICE OFFICE FUNCTIONAL EXPENSES-DIRECT COSTS Group Services Public Information Cooperation Professional Community Treatment Facilities Corrections Overseas Services (including Literature Assistance) General Service Conference Regional Forums Archives Trustee/Director Activities World Service Meeting Supporting Services 2011 ACTUAL

$2,146,558 293,208 318,488 135,781 235,089 500,345 881,318 382,742 521,716 337,441 0 2,994,453

2012 ACTUAL

$2,317,118 292,437 339,318 141,388 257,061 440,172 774,900 465,902 573,894 412,391 212,502 3,027,048

2013 ACTUAL

$2,454,030 278,984 333,085 129,222 301,537 479,074 906,376 459,213 651,169 401,422 0 3,113,470

Increase over prior year % increase over prior Total

8,747,139 105,027 1.22% 9,254,131 506,992 5.80% 9,507,582 253,451 2.74%

$1,000,000.00

SELECTED G.S.O. SERVICE EXPENSES

—

DIRECT COSTS 2013 $900,000.00

$800,000.00

$700,000.00

$600,000.00

$500,000.00

$400,000.00

$300,000.00

$200,000.00

$100,000.00

$0.00

Corrections Treatment P.I.

CPC Regional Forums International Archives Conference 13

GROUP SERVICE ACTIVITIES—FULLY ABSORBED

Group Services 2011 Actual

$3,263,908

2012 Actual

$3,437,762

2013 Actual

$3,648,966

Public Information Cooperation with the Professional Community Treatment Facilities Corrections Loners and Overseas Services General Service Conference Regional Forums

445,832 484,271 206,459 357,460 760,790 1,340,071 581,972 435,022 504,762 210,326 382,397 654,789 1,152,723 693,064 414,829 495,274 192,144 448,363 712,348 1,347,715 682,816

Archives Trustees/Director Activities WSM

793,285 513,089 853,710 613,463 316,113 968,241 596,886

Supporting Services—Allocated out Total

8,747,139 9,254,131 9,507,582

GROUP SERVICE ACTIVITIES

—

FULLY ALLOCATED

2011 2012 2013 Group Service Staff Assignment Activities Box 459 A.A. Directories Records & Files Depts.

Contributions, Processing, Verification and Documentation French Services Spanish Services Special Needs Nominating Total

$664,853 303,879 100,262 853,912 940,651 36,452 23,701 170,443 169,755 3,263,908 $653,493 290,727 57,497 887,286 957,831 39,298 27,776 231,760 292,095 3,437,763 $715,044 301,164 13,426 970,040 1,065819 29,605 33,582 166,402 353,885 3,648,966

MEMBER SERVICES & STATISTICS

Cost of Service per member per year Cost of Service per group per year Number of members reported Number of groups reported Percentage of groups contributing Contributions per member per year Contributions per group per year Cost of services NOT covered through Contributions that must be made up by using literature profits - per member per year

2011 Actual

$6.32

2012 Actual

$6.66

2013 Actual

$6.84

137.01

143.67

146.96

1,384,699 1,388,727 1,389,602 63,845 42.4% 4.52

96.95

64,414 42.4% 4.72

101.80

64,694 42.5% 4.97

106.75

1.80

1.94

1.87

PERCENTAGE OF SERVICES SUPPORTED BY CONTRIBUTIONS 78.00% 76.00% 74.00% 72.00% 70.00% 68.00% 66.00% 64.00% 62.00% Percentage of Services Supported by Contributions 17

GSO’s TWO BASIC FUNCTIONS

• Publishing • Services on Behalf of the G.S.B.

Group Records 18

A.A.W.S. PUBLISHING STATEMENT OF ACTIVITY

Gross Sales Less Discounts allowed Interest earned Net Sales – Literature (including interest earned) Cost of Literature sold Direct Shipping and Warehousing Gross Profit Gross Profit Percentage Program Expenses Supporting Expenses Total Expenses Excess of Revenue Over Expenses 2013 ACTUAL

$12,841,973 237,254 390 12,605,109 2,990,081 1,505,296 8,109,732 64.3% 3,200,822 2,276,259 5,477,081 2,632,651

2012 ACTUAL

$12,620,075 255,317 392 12,365,150 2,973,227 1,513,607 7,878,316 63.7% 2,914,348 2,115,073 5,029,421 2,848,895

INCREASE (DECREASE)

$221,898 (18,063) (2) 239,959 16,854 83,111 231,416 286,474 161,186 447,660 (216,244)

A.A.W.S. PUBLISHING STATEMENT OF ACTIVITY

2013 ACTUAL 2013 BUDGET INCREASE (DECREASE) Gross Sales Less Discounts allowed Interest earned Net Sales – Literature (including interest earned) Cost of Literature sold Direct Shipping and Warehousing $12,841,973 237,254 390 12,605,109 2,990,081 1,505,296 $12,800,000 260,000 400 12,540,400 3,128,000 1,629,200 $41,973 (22,746) (10) 64,709 (137,919) (123,904) Gross Profit Gross Profit Percentage 8,109,732 64.3% 7,783,200 62.1% 326,532 Program Expenses Supporting Expenses Total Expenses Excess of Revenue Over Expenses 3,200,822 2,276,259 5,477,081 2,632,651 3,122,433 2,266,089 5,388,522 2,394,678 78,389 10,170 88,559 237,973 20

A.A.W.S. LITERATURE TITLES

A.A. Big Books

* 12 Steps & 12 Traditions

Daily Reflections

Living Sober

All others

Total** 2013 Units

972,903

371,489

152,073

140,047

152,915

1,789,427 2013 $

6,067,659

2,269,993

1,119,946

524,876

2,859,499

12,841,973 * English –USA/Canada only

translations and

translations pending.

A.A.W.S. has published literature in

languages.

2012 Units

947,740

366,643 2012 $

5,942,145

2,252,871

148,072 1,105,015

127,918

153,029

1,743,402 483,090

2,836,954

12,620,075 21

BIG BOOK UNIT SALES: 1992—2013

1400 1200 1000 800 600 400 200 0 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 22

SELF-SUPPORT OF THE WORLD SERVICES OF ALCOHOLICS ANONYMOUS The A.A. spiritual principle of self-support enables us to pursue our primary purpose of carrying the message to the still-suffering alcoholic with a shared sense of responsibility for our lifesaving work and without interference or financial dependence on outsiders. From our Fellowship's earliest days, the expenses of the General Service Office, and the world services provided by it, have exceeded the amount derived from contributions of A.A. groups and members. As a result, providing these needed services has necessarily been supported in part by income from the sale of A.A. literature. It is the policy of the General Service Board that income from literature sales should only be in amounts required to allow continued provision of vitally needed services and maintenance of a Reserve Fund. We hope that the day will come when A.A. groups and members, through their contributions, will be able to fund fully the services provided by the General Service Office. If that is achieved, revenues from literature sales will only be needed in amounts necessary to cover the actual costs associated with literature production and to maintain a Reserve Fund.

Approved by the General Service Board February 3, 2014 23

Gross Sales

A.A.W.S. PUBLISHING STATEMENT OF ACTIVITY

Less Discounts allowed Interest earned Net Sales – Literature (including interest earned) Cost of Literature sold Direct Shipping and Warehousing 2013 ACTUAL

$12,841,973 237,254 390 12,605,109 2,990,081 1,505,296

2014 BUDGET

$15,300,000 594,000 390 14,706,390 3,542,370 1,940,070

INCREASE (DECREASE)

$2,458,027 356,746 0 2,101,281 552,289 434,774

Gross Profit Gross Profit Percentage

8,109,732 64.3% 9,223,950 62.8% 1,114,218

Program Expenses Supporting Expenses Excess of Revenue Over Expenses Total Expenses

3,200,822 2,276,259 5,477,081 2,632,651 3,446,156 2,375,915 5,822,071 3,401,879 245,334 99,656 344,990 769,228

A.A. GRAPEVINE – STATEMENTS OF ACTIVITIES AVERAGE CIRCULATION Online 77,126 5,175 83,263 5,535 Magazine Income Direct Costs: Magazine Gross Profit on Magazine Other Publishing Income Costs of Goods and Delivery Gross Profit on Other Publishing Items Total Gross Profit COSTS AND EXPENSES Editorial Costs Circulation and Business General and Administrative Total Costs and Expenses Interest Income Excess of Revenue over Expenses 2013 ACTUAL

$2,242,363 764,674 1,477,689 776,976 261,149 515,827 1,993,516 633,798 904,466 150,547 1,688,811 10,500 315,205

2012 ACTUAL

$2,342,910 817,663 1,525,247 705,310 281,642 423,668 1,948,915 605,089 905,135 196,488 1,706,712 14,800 257,003

(6,137) (360) INCREASE (DECREASE)

($100,547) (52,989) (47,558) 71,666 (20,493) 92,159 44,601 28,709 (669) (45,941) (17,901) (4,300) 58,202

A.A. GRAPEVINE — STATEMENTS OF ACTIVITIES

AVERAGE CIRCULATION 77,126 78,760 Online Magazine Income Direct Costs: Magazine Gross Profit on Magazine Other Publishing Income Costs of Goods and Delivery Gross Profit on Other Publishing Items Total Gross Profit COSTS AND EXPENSES Editorial Costs Circulation and Business General and Administrative Total Costs and Expenses Interest Income Excess of Revenue over Expenses 5,175 2013 ACTUAL

$2,242,363 764,674 1,477,689 776,976 261,149 515,827 1,993,516 633,798 904,466 150,547 1,688,811 10,500 315,205

4,653 2013 BUDGET

$2,200,256 815,296 1,384,960 704,320 269,421 434,899 1,819,859 697,989 918,757 207,459 1,824,205 16,300 11,954

(1,634) 522 INCREASE (DECREASE)

$42,107 (50,622) 92,729 72,656 (8,272) 80,928 173,657 (64,191) (14,291) (56,912) (135,394) (5,800) 303,251

AA Grapevine Circulation: 1974-2013

140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Subscriptions 28

GV OTHER PUBLISHING GROSS REVENUE

Titles Language of The Heart Emotional Sobriety - Vol. I & II 2013 $ $103,774 87,005 2012 $ 2011 $ $ 76,116 $ 78,356 95,414 92,601 One on One No Matter What All others * 73,483 57,067 455,647 533,780 Total 776,976 705,310

*2013 and 2012 include $32,734 and $24,150 of sales of E-books, respectively.

469,068 640,025 29

A.A. GRAPEVINE

—

STATEMENTS OF ACTIVITIES AVERAGE CIRCULATION 77,126 73,401 Online 5,175 4,561 Magazine Income Direct Costs: Magazine Gross Profit on Magazine Other Publishing Income Costs of Goods and Delivery Gross Profit on Other Publishing Items Total Gross Profit COSTS AND EXPENSES Editorial Costs Circulation and Business General and Administrative Total Costs and Expenses Interest Income Excess of Revenue over Expenses 2013 ACTUAL

$2,242,363 764,674 1,477,689 776,976 261,149 515,827 1,993,516 633,798 904,466 150,547 1,688,811 10,500 315,205

2014 BUDGET

$2,132,851 750,733 1,382,118 787,557 266,556 521,001 1,903,119 687,117 926,280 207,290 1,820,687 11,800 94,232

(3,725) (614) INCREASE (DECREASE)

$(109,512) (13,941) (95,571) 10,581 5,407 5,174 (90,397) 53,319 21,814 56,743 131,876 1,300 (220,973)

Average Circulation LA VIÑA

—

STATEMENTS OF ACTIVITIES 8,982 9,160 2011 ACTUAL 2012 ACTUAL INCOME

Subscription Income Back Issues Magazine Income Income from Related Items Total La Viña Income Total Direct Costs Gross Profit

COSTS AND EXPENSES

Editorial Costs Circulation and Business General and Administrative Total Costs and Expenses Shortfall between Revenue and Expenses Support from General Service Board General Fund

Net

$98,135 8,428 106,563 22,761 129,324 58,596 70,728 84,507 54,792 1,152 140,451 (69,723) 69,723 0 $96,892 10,378 107,270 16,210 123,480 58,015 65,465 113,828 65,610 1,847 181,285 (115,820) 115,820 0

10,145 2013 ACTUAL

$106,960 9,590 116,550 10,721 127,271 63,737 63,534 130,546 73,022 2,510 206,078 (142,544) 142,544 0

LA VIÑA SALES AND CIRCULATION

12,000 10,000 8,000 6,000 4,000 2,000 0 1997 1999 2001 2003 2005 2007 2009 2011 2013 La Vina Sales and Circulation 32

$0 ($20,000) ($40,000) ($60,000) ($80,000) ($100,000) ($120,000) ($140,000) ($160,000) La Vina

LA VIÑA

—

SHORTFALL BETWEEN REVENUE AND EXPENSES 33

A.A. PENSION AND POSTRETIREMENT MEDICAL

Obligations Funded Unfunded 12/31/2012 12/31/2013 12/31/2012 12/31/2013 12/31/2012 12/31/2013 Pension

$29.9m

$27.7m

$19.5m

$24.1m

$10.4m

$3.6m

Medical

5.9m

35.8m

5.7m

33.4m

2.0m

21.5m

2.7m

26.8m

3.9m

14.3m

3.0m

6.6m

Notes: 1.

From 2012 to 2013 the combined Obligations decreased by $2.4m

From 2012 to 2013 the combined Funded Status increased by $5.3m

From 2012 to 2013 the combined Unfunded Status decreased by $7.7m

  

PENSION PLAN LIABILITY

Pension Protection Act (PPA) Moving Ahead for Progress in the 21

Century Act (MAP – 21)



Minimum Funding Requirements Statement of Financial Accounting Standards No. 87 – Accounting for Post-Retirement Benefits, as amended

Actives Vested & Terminated

PENSION PLAN LIABILITY

2011 87 47 2012 84 45 Retirees & Beneficiaries Total Average Payroll Benefits Paid Cash Pension Costs Charged to Operating Expenses 60 194 $67,300 985,257 1,678,750 68 197 $70,200 1,014,838 1,812,250 Estimated benefits over next 5 years:

2014 – 1,375,967 2015 – 1,501,149 2016 – 1,544,586 2017 – 1,564,095 2018 – 1,580,950

2013 82 43 70 195 $70,700 1,086,724 2,105,000 36

PROJECTED PENSION BENEFIT OBLIGATION

Projected Benefit Obligation – 1/1 Service & Interest Costs Benefits Paid Actuarial (Gains)/Losses Projected Benefit Obligation – 12/31

2013 29,874,320 1,925,108 1,086,724 (3,054,213) 27,658,491 2012 27,189,259 1,985,114 1,014,838 1,714,785 29,874,320

Plan Assets – 1/1 Return on Plan Assets Employer Contributions Benefits Paid Plan Assets – 12/31 Net – Unfunded Status

19,505,597 3,564,880 2,105,000 (1,086,724) 24,088,753 (3,569,738) 16,895,502 1,812,683 1,812,250 (1,014,838) 19,505,597 (10,368,723) 37

RESERVE FUND

GENERAL SERVICE OFFICE

F E L L O W S H P I Contributions Literature

G.S.O

Cash Flow Excess Special Projects Budget Deficit F U N D G S B R E S E R V E 39

GRAPEVINE

F E L L O W S H I P Subscriptions Other Publishing G.V.

Cash Flow Excess Special Projects Budget Shortfall G S B F U N D R E R V S E E 40



RESERVE FUND

Reserve Fund Balance

• December 31, 2012 - $15,353,752 – Annual earnings - $138,650 • December 31, 2013 - $15,301,653 – Annual earnings - $ 94,824

INVESTMENT GUIDELINES

“Minimum Requirement”

To assure the liquidity, the Reserve Fund shall contain investment instruments having maturities of one year or less in an amount equal to the sum of (a) the unearned Grapevine subscription liability and (b) the operating cash requirements of the service entities. This amount will be reviewed annually by the trustees’ Finance and Budgetary Committee.

“No More Than”

The balance of the Reserve Fund shall be invested in instruments with maturities of between zero (0) and ten (10) years, provided that at no time shall more than 50% of the principal amount of such balance consist of investments having maturity dates of five or more years.

THE GENERAL SERVICE BOARD — RESERVE FUND

12-31-2009 12-31-2010

$12,135,909* $14,368,427*

12-31-2011 12-31-2012 12-31-2013

$15,296,921 $15,353,752 $15,301,653

Balance available to cover Operating Expenses Operating Expenses Number of months covered Groups Membership Equivalent Balance per Group Equivalent Balance per Member

15,327,092 9.5

61,581 1,358,879 197.07

8.93

15,271,820 11.3

62,873 1,373,681 228.53

10.46

15,408,284 11.9

63,845 1,384,699 239.59

11.05

16,228,337 11.4

64,414 1,388,727 238.36

11.06

16,879,552 10.9

64,694 1,389,602 236.52

11.01

By Conference action, the “Prudent Operating Reserve” was defined as an amount equal to the preceding year’s combined operating expenses of A.A. World Services, A.A. Grapevine and the General Fund of the General Service Board. Operating expenses include “office and operating expenses” and do not include the Cost of Products or Manufacturing cost.

*Includes pending transfer 42

KEY ACTIONS TO MAINTAINING THE RESERVE FUND

    Restored the price of the Big Book in July 2004 by raising the price by $1.

Announced increases in certain book prices and handling charges effective July 1, 2005.

Price increases July 2009 and October 2014 for long term fiscal health.

Transfer of funds in 2014 to partially fund Pensions Plan Liability and lower future operating costs.

TRUSTEES’ FINANCE REPORT

 

G.S.O. 2014

• • Balance Budget Place continuing emphasis on Self-Support by Fellowship Literature price increases (selected items) • Printing of commemorative Edition (First printing of the Big Book)

G.S.O. 2015

• 2014 revenue increases should continue FOCUS: Self-Support as sustainable revenue for A.A.’s future  Appreciation for Fellowship’s responses to contributions and to our Birthday Plan.

Grapevine assumptions:

1. 2014 projections show positive (with 2015 turning negative) results assuming that current restrictions on engagement activities remain in place.

2. Print subscriptions are projected to continue to decline in the absence of recommended communications activities and organization—wide support.

3. Potential for digital subscription growth, including the possibility of the replacement of print subscription fall-off, is also affected by Assumptions 1 and 2.

A.A. INTERNATIONAL CONVENTIONS

ATLANTA 2015 SAN ANTONIO 2010 TORONTO 2005 MINNEAPOLIS 2000 ATTENDANCE 50,000 EST 52,383 42,500 47,500 PRICE/PERSON REVENUES EXPENSES NET $100 - $110 5,100,000 5,020,000 80,000 $95 - $110 5,212,650 4,368,105 844,545 $85 - $95 3,919,332 3,958,372 (39,040) $85 - $95 4,108,388 3,110,804 997,584 45

GENERAL SERVICE BOARD FINANCIAL SUMMARY OF OPERATIONS 12-31-13 G.S.O.

GENERAL FUND THE A.A.W.S.

PUBLISHING THE A.A.

GRAPEVINE LA VIÑA 2013 COMBINED ACTUAL REVENUE Net Sales Contributions Interest TOTAL REVENUE EXPENSES Printing Royalties $6,906,371 114 6,906,485 $12,604,719 390 12,605,109 2,962,241 27,840 $3,019,339 10,500 3,029,839 402,183 Shipping & Warehouse Program Expenses Supporting Services TOTAL EXPENSES NET INCOME (LOSS) OPERATIONS 5,751,387 3,756,195 9,507,582 (2,601,097) 1,505,296 3,200,822 2,276,259 9,972,458 2,632,651 623,640 1,097,907 590,904 2,714,634 315,205 RESERVE FUND Reserve Fund Balance at December 31 available to cover operating expenses Operating Expenses Number of months Operating Expenses-approximate $127,270 127,270 33,544 30,192 206,078 269,814 (142,544) $15,751,328 6,906,371 11,004 22,668,703 3,397,968 27,840 2,159,128 10,256,194 6,623,358 22,464,488 204,215 15,301,653 16,879,552 10.9

*Excludes non-operating Funds: Reserve, Capital Projects, Pension, Post-Retirement Medical Benefits 2014 BUDGET $17,755,686 7,000,000 12,200 24,767,886 4,010,111 38,870 2,514,861 10,859,707 7,096,236 24,519,785 248,101 14,061,653 17,993,843 9.4