Summary of
2017 Treasurer’s Report

January 22, 2018
Available on Request

Our 2017 financial results were mostly good news, and just a bit of other news. Income and expense increased significantly, both to over $130k.  At year-end we had a small operating loss. This year the $48k USR task contract moved the financial needle. The impact of that contract primarily had a positive effect on staff compensation, while causing certain administrative and cash flow challenges.

The fight to protect Medicine Lake continued; we had challenges in the H.O.M.E. program. Staff began developing new forest and water program initiatives, and created new educational initiatives including successful Family Nature Walks and community events.

As policy advocates, we supported the City of Weed’s water battles, and helped the City of Mt. Shasta develop climate resiliency strategies. Funding from the Goldschmidt Foundation supported operations and purchases of equipment which will allow us to increase the effective use of video and social media.

Overall, we had relatively minimal cash flow challenges this year, yet that was more about luck than skill. While we underspent Medicine Lake funds, we made an unanticipated refund of H.O.M.E. grant monies and ended the year with a negative unrestricted fund balance. It is not an acceptable policy to net cash balances among various funds to pay bills on time, so going forward we must focus on further building reserves. Regularizing cash flow on a monthly basis is an elusive goal. Financial stability requires both good planning and close activity monitoring.

Income

Total income for 2017 increased to $131,099 compared with $83,787 (+56%) the previous year. The primary reason for the gain was receipt of $47,507 from our contract with the City of Mt. Shasta for the Upper Sacramento River (USR) task. The contract involved data management, presentations and subcontracted video production to benefit the water management group.

Contributions from our Giving Tuesday fundraising campaign increased to $9,174 in 2017 compared with $5,939 in 2016). Fiscal sponsorship revenue increased due to $10,000 in grants received (from which we retained $1,000) for the “Walking Backwards” film project on the life of Karuk Medicine Man Charlie Thom.

Special events income included $7,336 from a one-evening Nahko Bear concert at the Weed Palace Theatre in September, benefiting the Winnemum Wintu tribe and fire survivors. We agreed to assist in this quickly organized event when fires prevented the performance from taking place as scheduled that weekend in Hayfork.

We unfortunately had to return remaining unspent 2016 and 2017 grant funds from the Josephine Taylor Foundation due to difficulties with the Honor Our Mountain Environment (H.O.M.E.) program. We underspent 2016 funds as volunteers did not claim stipends, and in 2017 the Forest Service decided at the last minute not to partner with us. We returned the funds as required by terms of the grant and are currently developing an alternative program plan for 2018 which may include a new grant funding request.

Expense

Total expense increased to $136,834 in 2017 compared with $70,538 (+94%) the previous year. Here as well, USR task contract expenses primarily drive this increase.

Grants to other organizations represent funds paid the tribe and fire survivors from net proceeds of the Nahko concert.

Under the USR task contract, we billed staff time at rates considerably higher than these employees’ base pay. We decided to pass most of this difference directly to the staff. Also, during turnover for two staff positions, we paid additional amounts for training and transition time. And as a change in accounting practice, we created a $2,451 payroll tax accrual in December, which will be paid in January 2018 and was added to financial statements.

Contract services included $21,691 for USR task subcontracts and expense. Also, this category included contract bookkeeping services for part of the year. Non-personnel, facility and equipment costs increased due to taking on an additional room for our office, and purchase of video and presentation equipment funded by the Goldschmidt grant.

Improved reporting highlighted staff time spent on various activities, which particularly impacted the financial picture for special events, all of which showed (usually slight) losses.

Net Income

We ended the year with a slight ($5,735) loss; this would have been a positive number except for the Josephine Taylor fund repayments.

Fund Balances

At year end, cash on hand (combined balances of PayPal and the Scott Valley Bank checking account) decreased slightly to $24,733 from $28,017 the previous year. Finances vary significantly from month to month.

Without the return of Josephine Taylor funds, the negative “Other” fund balance would have been significantly less. In addition, the Goldschmidt grant funds contributed to facility and other expenses which had previously been considered overhead for the organization.