VOA VP Financial Committee News

[viperguy69]

Information about the Club Finances will start getting posted. This is meant as an information thread to membership on where we are for planning purposes at this time.

Once the budget is approved you will see information based on the plan being tracked against actual liquidations. The intent is to publish a monthly expense report that provides membership with a picture of what we collected (year to date for 2022) against what we owed (year to date for 2022) which should demonstrate where we plan to end up by 31 December 2022.

Provided is the draft 2022 budget proposal based on membership as of 15 January 2022 - pending updates

I will update this chart with 31 January membership numbers on 1 February 2022 at 1:30 am which is when our credit card clears the funds through the credit card service we use. The BoD review, discussion, and vote will be based on the 31 January 2022 membership number. Membership information will then be updated on a monthly basis. Funds above 10% of this budget proposal will remain in reserve to ensure we execute this budget according to plan. The intent for the reserve is to build up a reserve large enough to allow us to solve our own problems without the need to ever borrow money again.

Going to a lifetime Membership Plastic Card issue will reduce costs by over $10K, year-over-year, for every 1000 members, we made an assumption that we will have a 10% new membership rate who would need new cards. We plan to ask the BoD to approve these funds in 2023 to be applied toward the $175K SBA EIDL loan - this would cover our monthly payments which must begin by September 2023.

Lastly, we are working on trying to open NVE-5 to early-bird sign-up for about 150 rooms in the coming months which will provide the finances needed to make the next $10K security deposit (and all other event deposits if needed) scheduled for September 2022. Cancelling NVE-5 at this point will cost the club another $7.5K based on the contract signed. After September 2022, should we pay the next $10K, we are committed to another $10K on top of that $30K spent. However, we have already talked to a few insurance brokers to get event cancellation insurance for this event just to be sure we are covered with any unforeseen circumstances that should arise. NVE-5 funds will not be comingled with the regular club funds - they will be placed into an NVE-5 bank account to be properly managed and reported on as well.

Updated 21 Jan 2022 - Paid Renewals 1 Oct 2021 - 20 Jan 2022
20 Jan 2022 Portal Info - 2022 Budget Draft.jpg
The compression makes this image unreadable...

Here is a workaround - 2022 Proposed VOA Budget (3).pdf

[viperguy69]

Financial Committee Meetings will be:

Completed - 1) 25 January 2022 at 8pm - Focused on 2021 missed deliverables, 2022 budget proposal, Jan 2022 execution, Feb 2022 projected, and NVE-5 planning and budget
2) 22 February 2022 at 8pm - Focused on Feb 2022 execution, Mar 2022 projected, and NVE-5 roll-out
3) 22 March 2022 at 8pm - Focused on Mar 2022 execution, April 2022 projected, and review 2022 expenses to date and proposed target adjustments as well as planned reductions

Dates TBD

4) April - NVE-5 quick look and VOA Store Liquidation
5) May - NVE-5 early-bird sales, NVE-5 regular registration, and VOA Store shut-down
6) June - 2022 execution - Mid-year review
7) July - 2023 Membership level options for 1 Oct 2022
8) August - $175K SBA loan repayment options for 2022
9) September - 2023 Budget development
10) October -
11) November -
12 ) December -

... more to follow...

We intend to publish the following 2022 Financial Reports:
1) January Expense Report - by 28 February 2022
2) February Expense Report - by 31 March 2022
3) March Expense Report - by 30 April 2022
4) April Expense Report - by 31 May 2022
5) May Expense Report - by 30 June 2022
6) June Expense Report - by 31 July 2022
7) July Expense Report - by 31 August 2022
8) August Expense Report - by 30 September 2022
9) September Expense Report - by 31 October 2022
10) October Expense Report - by 30 November 2022
11) November Expense Report - by 31 December 2022
12) December Expense Report - by 31 January 2023

We expect to have our 2022 P&L ready by no later than 28 February 2023 to close out 2022... then rise and repeat for 2023!

If the presidents have members, preferred members with a accounting/CPA background, to sit on the Committee please send me their name and a brief bio for consideration. I would like to get the Financial Committee to about 5 or 6 permanently staffed members.

As always, the BoD and/or their designated representative is more than welcome to attend every meeting to present ideas, information, and to have discussions. THIS COMMITTEE DOES NOT MAKE DECISIONS. The committee is a fact-finding body that collects information, shapes the information for presentation, and then reports back to the BoD for formal discussions and then for a recommendation for a future vote.

We may record our meetings but understand that this is not a formal meeting like a BoD meeting, this is a working group to get work done! I will publish working papers and other products after they are shared with the BoD, I do not have time, nor will I spend the time writing or publishing meeting minutes unless one of the attendees takes on that responsibility - I welcome anyone who wants to take on that responsibility and will gladly publish those minutes accordingly.

[Bruce H.]

That's a whole lot of numbers...but great job Wes!

For those that would like a quick summary, here are the highlights..

-Membership as of Jan 15th is 951

-January renewals (94) for a half month are running at about the same rate as half a month in November (176 for full month)

-2022 Membership revenue collected from Oct 1 - Jan 15 already totals $172, 935.

-All 2022 Member expenses are budgeted, including payments to regions and total $172,651

-This 2022 budget is now balanced with a surplus of $284 with months of renewals yet to be collected.

-The budget was balanced from membership revenue alone, and does not include any from advertising and sponsorships. Those revenues will build our cash reserves.

-The Viper Store is to be closed as it is costing the club money to remain open.

-Viper Quarterly Editor and Design fees were reduced by 25%.

-Numerous other expenses have been reduced or eliminated.

-Deposits paid for NVE 5 amount to $20,000. Another $10,000 is due in September. The plan is to make a conservative NVE Budget and collect pre-registration fees to pay for further deposits.

-Membership has now reached the minimum threshold that we needed to balance the budget, and membership fees from Jan 1 to Sept 30th can start building back our rainy day cash reserves.

-There is no loan repayment in this 2022 budget, but there could be if membership renewals and other revenues exceed our cash reserve requirements. Loan repayments will be scheduled in the 2023 budget.

I hope these highlights will help give you a good overview of where the club finances are at. I'm personally rather impressed that costs have been cut as much as they have, that the budget has been balanced so early in the year, and at such a low membership level. I have great optimism for continued membership growth over the next 3 months.

We're only 16 days into the new VOA leadership's 2-year term, and this is already showing their efforts are delivering real results. There are other initiatives in the works that are going to have a positive impact on club finances, and as they are approved by the Board of Directors we will be pleased to announce them.

When you feel the VOA has earned your trust, you know what to do

[01sapphirebob]

Its really encouraging to see things coming together so quickly. As ive been telling everyone that ive talked to…im more then hopeful for the VOA’s future. We just need to put the work in!

[CarolinaViper]

That's a whole lot of numbers...but great job Wes!

For those that would like a quick summary, here are the highlights..

-Membership as of Jan 15th is 951

-January renewals (94) for a half month are running at about the same rate as half a month in November (176 for full month)

-2022 Membership revenue collected from Oct 1 - Jan 15 already totals $172, 935.

-All 2022 Member expenses are budgeted, including payments to regions and total $172,651

-This 2022 budget is now balanced with a surplus of $284 with months of renewals yet to be collected.

-The budget was balanced from membership revenue alone, and does not include any from advertising and sponsorships. Those revenues will build our cash reserves.

-The Viper Store is to be closed as it is costing the club money to remain open.

-Viper Quarterly Editor and Design fees were reduced by 25%.

-Numerous other expenses have been reduced or eliminated.

-Deposits paid for NVE 5 amount to $20,000. Another $10,000 is due in September. The plan is to make a conservative NVE Budget and collect pre-registration fees to pay for further deposits.

-Membership has now reached the minimum threshold that we needed to balance the budget, and membership fees from Jan 1 to Sept 30th can start building back our rainy day cash reserves.

-There is no loan repayment in this 2022 budget, but there could be if membership renewals and other revenues exceed our cash reserve requirements. Loan repayments will be scheduled in the 2023 budget.

I hope these highlights will help give you a good overview of where the club finances are at. I'm personally rather impressed that costs have been cut as much as they have, that the budget has been balanced so early in the year, and at such a low membership level. I have great optimism for continued membership growth over the next 3 months.

We're only 16 days into the new VOA leadership's 2-year term, and this is already showing their efforts are delivering real results. There are other initiatives in the works that are going to have a positive impact on club finances, and as they are approved by the Board of Directors we will be pleased to announce them.

When you feel the VOA has earned your trust, you know what to do

Bruce.

Thanks for the synposis couldn't read the chart. Great job in getting to a balance budget with some left over.

When do you see the regions getting back to their 50 percent split of the membership dues instead of just $50.00 per member? At 1000 members (with a split 25/75 regular vs Mamba members) the regions are losing $6K for regular members and $36K for Mamba members for a total over $42K.

Then there is the Covid loan repayment of $850 (more or less) monthly payment for a total of $10K. Adding the loan repayment and IF the regions receiving their original 50 percent of the membership dues this would increase the budget by more than $52K.

So, if you guys are expect to build a cash reserve you need to include these payments unless the regions are only going to receive $50 per person for the next 3-5 years.

[Bruce H.]

Bruce.

Thanks for the synposis couldn't read the chart. Great job in getting to a balance budget with some left over.

When do you see the regions getting back to their 50 percent split of the membership dues instead of just $50.00 per member? At 1000 members (with a split 25/75 regular vs Mamba members) the regions are losing $6K for regular members and $36K for Mamba members for a total over $42K.

Then there is the Covid loan repayment of $850 (more or less) monthly payment for a total of $10K. Adding the loan repayment and IF the regions receiving their original 50 percent of the membership dues this would increase the budget by more than $52K.

So, if you guys are expect to build a cash reserve you need to include these payments unless the regions are only going to receive $50 per person for the next 3-5 years.

Thanks for the great questions, Jeff...I knew we could count on you!

The regions will be back to 50/50 for 2023. That's a non-negotiable for me, and many others I'm sure. And the coffers will support it with the strong membership growth we are focused on creating.

Revenues to pay down the loan will be coming from a number of sources, without touching the membership revenue that will entirely fund operations and the return to 50/50 starting in 2023. It's really unfortunate that this level of fiscal restraint wasn't in place years ago as there was absolutely no reason to have this giant mess to clean up.

I'll also add, I'm really enjoying being part of the team that's fixing this...it's very rewarding. And we can always use a few more solid individuals to be part of the VOA's transformation, wink, wink!

[CarolinaViper]

Thanks for the great questions, Jeff...I knew we could count on you!

The regions will be back to 50/50 for 2023. That's a non-negotiable for me, and many others I'm sure. And the coffers will support it with the strong membership growth we are focused on creating.

Revenues to pay down the loan will be coming from a number of sources, without touching the membership revenue that will entirely fund operations and the return to 50/50 starting in 2023. It's really unfortunate that this level of fiscal restraint wasn't in place years ago as there was absolutely no reason to have this giant mess to clean up.

I'll also add, I'm really enjoying being part of the team that's fixing this...it's very rewarding. And we can always use a few more solid individuals to be part of the VOA's transformation, wink, wink!

Do you mind sharing how you are going to get an additional $42K, without relying on sponsorship/advertising, as we both know these are not reliable. Quick math and very quick math, the club would need about 1500 members (using the same 25/75 memship types) if all expenses are the same excluding the increase to teh regions for membership dues.

[Bruce H.]

Do you mind sharing how you are going to get an additional $42K, without relying on sponsorship/advertising, as we both know these are not reliable. Quick math and very quick math, the club would need about 1500 members (using the same 25/75 memship types) if all expenses are the same excluding the increase to teh regions for membership dues.

We do expect very strong membership growth and the Membership/Regional Development Committee will be presenting our first proposal to Operations Tuesday, to Finance next Tuesday, and I fully expect to the full BOD on Feb 1st where I expect that it will be approved and enacted almost immediately. Those who think committees are going to be slow and plod along will be impressed, or not

[13COBRA]

I renewed as Mamba this morning. I like the direction this is going. Please don't make me eat crow.

[Bruce H.]

I renewed as Mamba this morning. I like the direction this is going. Please don't make me eat crow.

Thanks Nick!

The membership committee had a Zoom meeting last night and we've got a plan that is absolutely, positively, without a doubt, 100% going to help regions build up their membership's for the benefit of all their members. The regions is where the rubber meets the road. The VOA's financial mismanagement did impact their early renewals. That has largely been addressed, and continues to be addressed. We have a balanced budget, and serious measures to prevent this from ever happening again are in the works.

So with national well on it's way to looking ahead to paying down the debt, most members can look ahead to having fun with their Vipers and club friends again this year. Time to shake off the blues, and I'm glad to hear that's what you've done!

Cheers

[viperguy69]

Effective 28 January 2022 at 1:00am we are at 1021 members - chart and pdf file above will be updated.

These 1021 members include 990(updated) members (1 October 2021 - 27 January 2022) + 11 members who were brought (from September 2021 - proceeds not included in 2022 balance) + 20 Spirit of Viper members (proceeds not included in 2022 balance).

We currently have a positive cash balance of $3,394 (updated) and did it with 100% Membership dues collected from 1 October 2021 - 27 January 2022!

For anyone who joins from this point forward, they will continue to feed a positive cash balance for the remainder of the year - again this is a balanced 2022 budget without using any advertisements, web sponsors, or other cash receipts. The plan was to be balanced with just membership dues - done! The funds collected going forward will be pooled for a decision at the end of the year (Oct 2022 BoD meeting) to keep some or all of the cash for a reserve/buffer or to pay down some of the debt early.

[01sapphirebob]

Effective last night at 1:00am we are at 1009 members - chart and pdf file above have been updated.

These 1010 (corrected +1 added today late CC processing) members include 979(updated) members (1 October 2021 - 20 January 2022) + 11 members who were brought (from September 2021 - proceeds not included in 2022 balance) + 20 Spirit of Viper members (proceeds not included in 2022 balance).

We currently have a positive cash balance of $2,570 (updated) and did it with 100% Membership dues collected from 1 October 2021 - 20 January 2022!

For anyone who joins from this point forward, they will continue to feed a positive cash balance for the remainder of the year - again this is a balanced 2022 budget without using any advertisements, web sponsors, or other cash receipts. The plan was to be balanced with just membership dues - done. The funds collected going forward will be pooled for a decision at the end of the year (Oct 2022 BoD meeting) to keep some or all of the cash for a reserve/buffer or to pay down some of the debt early.

Very exciting new Wes!!

[viperguy69]

Effective 9:00am 25 January 2022 we are at 1017 members.

The breakout for the 1017 members is as follows: 986 members (1 October 2021 - 24 January 2022) + 11 members who were brought (from September 2021 - proceeds not included in 2022 balance) + 20 Spirit of Viper members (proceeds not included in 2022 balance).

We currently have a positive cash balance of $3,066 and did it with 100% Membership dues collected from 1 October 2021 - 24 January 2022!

[Hootie]

There seems to be a tidal wave of info being shared now, and the philosophy of the current board looks to be vastly improved. I was a hold out. Now back to being a Mamba. Keep it up guys!

[Bruce H.]

There seems to be a tidal wave of info being shared now, and the philosophy of the current board looks to be vastly improved. I was a hold out. Now back to being a Mamba. Keep it up guys!

Glad to hear that, Hootie. We just finished another excellent Finance Committee meeting.

We're fixing the club in record time, but the only disappointing part is knowing that the real challenge will be convincing folks of that.

[viperguy69]

There seems to be a tidal wave of info being shared now, and the philosophy of the current board looks to be vastly improved. I was a hold out. Now back to being a Mamba. Keep it up guys!

Thanks Hootie, we are trying to follow through in what we said we were going to do. If I am missing the boat on information you or your membership needs, just drop me a line and I will try to accommodate.

With that being said, tonight's Financial Committee met to discuss topics based on:
____1) How we make Calculations – Club Finances
____2) Financial options for “What are our 2021 deliverables that were not delivered?”
____3) 2021 Wrap-up and first look at proposed VOA 2021 P&L statement
____4) 2022 Proposed Balanced Operating Budget
____5) 2022 January Beginning and Projected Ending Balance
____6) 2022 February Projected Beginning Balance and Known Liabilities
____7) 2023 NVE-5 Budget Estimate, Itinerary, and Planning Factors

Provided is the working paper topics and most of the discussion that occurred this evening. One of the topics was moved back to the Membership Committee for continued discussion with refinement.

Despite this being a working meeting with open dialogue it seems that future meetings may need to be driven using Robert's Rules - more to follow, as we do not want to limit discussion as much as members want to limit duration of discussions on a topic.

Working Papers (PDF) file provided here: VOA Finance_25Jan2022_Final.pdf

[Cost4133]

Wes,

thanks for update.

I read through the notes on your meeting working file. I am really glad to see thought and consideration in there as to the loan (in terms of NVE). Definitely helping me see the responsibility being taken seriously.

[viperguy69]

Wes,

thanks for update.

I read through the notes on your meeting working file. I am really glad to see thought and consideration in there as to the loan (in terms of NVE). Definitely helping me see the responsibility being taken seriously.

Thanks. Our number one goal is to get everything balanced as individual programs. Then the focus, you could say with every balanced initiative, is to get the $175K debt off the books as quickly as possible.

Once the debt is retired we can talk about Regional Splits and whether we go greater than 50/50 or maybe even something like membership fee normalization. In my view, once we wipe the debt and rebuild our reserves for each program, we should look to keeping the current fee structure in place and give more money to the Regions when it is possible for the individual membership's personal enjoyment. We could also look at keeping the 50/50 split in place and look more at national supporting bucket list Regional Events in NVE off years with extra insurance, advertising, and luncheons etc... Many options become available after that debt is gone with any perceived potential surplus, that is after we establish cash reserves and clean our house a little more so that we never have to consider any type of loan ever again.

[CarolinaViper]

Thanks. Our number one goal is to get everything balanced as individual programs. Then the focus, you could say with every balanced initiative, is to get the $175K debt off the books as quickly as possible.

Once the debt is retired we can talk about Regional Splits and whether we go greater than 50/50 or maybe even something like membership fee normalization. In my view, once we wipe the debt and rebuild our reserves for each program, we should look to keeping the current fee structure in place and give more money to the Regions when it is possible for the individual membership's personal enjoyment. We could also look at keeping the 50/50 split in place and look more at national supporting bucket list Regional Events in NVE off years with extra insurance, advertising, and luncheons etc... Many options become available after that debt is gone with any perceived potential surplus, that is after we establish cash reserves and clean our house a little more so that we never have to consider any type of loan ever again.

Wes,

Great job in getting a balanced budget. If I'm reading you right, the regions will not get a 50/50 membership split until the $175K Covid loan is paid off. If that is so, is there an estimate of time when that would be, five years, ten years or sooner than five years. I thought that the 50/50 membership split would be back on schedule when 2023 dues were received. Also, great track price for NVE-5, compared to the last two NVEs which was $65K and $75K when you add all the expenses. It hard to believe two days of track time, with flag workers, emergency personnel, tow trucks for that great price...great job.

Jeff

[viperguy69]

Wes,

Great job in getting a balanced budget. If I'm reading you right, the regions will not get a 50/50 membership split until the $175K Covid loan is paid off. If that is so, is there an estimate of time when that would be, five years, ten years or sooner than five years. I thought that the 50/50 membership split would be back on schedule when 2023 dues were received. Also, great track price for NVE-5, compared to the last two NVEs which was $65K and $75K when you add all the expenses. It hard to believe two days of track time, with flag workers, emergency personnel, tow trucks for that great price...great job.

Jeff

Thanks Jeff.

No, we will return to 50/50 split in 2023. That was the deal we struck with the Regions in that we needed the year to get our ducks in a row in order to get the club back on track.

The price structure for 2023 will get worked out this summer on membership and presented to the BoD well before the 1 Oct 2022 membership drive starts for 2023. There will likely be two membership paths, VOA Membership and Mamba Membership. Those splits will be calculated without the magazine. The magazine will become an add-on to either membership path you choose and then you can choose Virtual or Virtual + Hardcopy... those details will all get worked out later. For now, the 2022 plan provides the viability the club needs until we have completed all the changes that will happen this year, the future of the club is looking better.

Remember we have only been at this for 26-days, I was working on plans New Year's Eve with a cold one!

[viperguy69]

Effective 1:00am 31 January 2022 we are at 1031 members.

The breakout for the 1031 members is as follows: 1000 members (1 October 2021 - 31 January 2022) + 11 members who were brought (from September 2021 - proceeds not included in 2022 balance) + 20 Spirit of Viper members (proceeds not included in 2022 balance).

We currently have a positive cash balance of $2,431 doing it all with 100% Membership dues collected!

If you were paying attention to earlier post, our cash reserve has gone down as a result of our final Insurance Invoice quote for the club coming in at about $1.8K more for then last year. This includes the four insurance policies that drive the club year-over-year with D&O for the BoD and a $1M main Club policy plus a $7M umbrella policy that National is using to cover all U.S. regions operating under the VOA with a General Liability insurance.

[viperguy69]

Effective 11:00am 4 April 2022 we are at a total of 1192 members signed up with the VOA.

The breakout for the membership is as follows: 1161 members (1 October 2021 - 4 April 2022) + 11 members who were brought (from September 2021 - proceeds not included in 2022 balance) + 16 Spirit of Viper members (proceeds not included in 2022 balance) + 4 Legacy members (former presidents + one contest winner - no proceeds collected) = 1192. Where were we last year? We were at 1300 members last year this time, so we are off schedule by 9% year-over-year. We are still tracking Mamba membership at 70% compared to standard membership coming in at 30% for those that signed-up in 2022.

What is in the bank and what do the numbers look like?
1) We currently have a positive cash balance of $14,760 doing it all with 100% Membership dues collected!
2) With everything included in what we have collected to date from all other sources of revenue, the cash balance puts us at an additional $7,531 for a total cash balance of $22,291.
3) The club now has a 12% cash reserve for any possible miscalculations within the budget which puts us in a more comfortable position for the rest of the year.
4) We will need to adjust our budget by about $1800 in total to accommodate the price of paper for printing and bulk order processing. For the paper magazine, the budget adjustment from $5.25 per printed copy to $5.34 per printed copy was as a result of all paper in the industry being hard to come by and increases due to inflation, trying to lock in the price for the remaining 3 magazines for this year with our new printing company.

I will publish the revised budget plan, with adjustments, once the BoD is informed next week as well as the liquidations for January, February, and March 2022.