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2000-2001 ALTA® Financial Report

January/February 2001 - Volume 80, Number 1

by Mark E. Hernick, Director of Finance and Administration

All in all, 2000 was a very successful financial year for ALTA®. As noted below, expenses came in $65,000 less than originally budgeted, a testament to staff’s careful management of association funds.. Here is a brief synopsis of our financial picture for 2000, and a look at the approved budget for 2001. If you would like more detailed information, contact me and I’ll be happy to provide it to you.

Year In Review

At the time of this writing, ALTA® anticipated concluding 2000 with total expenditures of approximately $3,561,772—a reduction in expenses of more than $65,000 when compared to the $3,636,920 originally budgeted for the year. The majority of the reductions can be directly related to cost savings in the Committees, Travel, and Title News categories, with additional savings coming from the Public Relations and Product Services line items.

While dues revenue is anticipated to be $12,000 less than originally budgeted, all other revenue categories are expected to meet originally budgeted projections. By reducing expenses and maintaining projected revenue levels, ALTA® will only need to transfer $700,000 from Reserve Asset Funds, as compared to the $753,000 originally budgeted.

ALTA®’s financial records for the year ending December 31, 2000 will be audited by the firm of Price WaterhouseCoopers in February 2001.

The end of 2000 also brought with it the end of a legacy in the Finance and Administration Department. David R. McLaughlin, vice president of administration, retired after more than 32 years of dedicated service. David’s contributions to ALTA® are greatly appreciated by members and staff. While we wish him well in his retirement, he will be missed.

A Look Ahead

As ALTA® moves into 2001, the financial outlook continues to be strong. The Association will operate on a balanced budget, with revenues and expenses equal at $3,927,570. The approved 2001 operating budget is shown in Exhibits 1 and 2. Exhibit 1 shows a line-by-line expense breakdown, while Exhibit 2 shows the percentage of income sources and expense accounts as they relate to total budgeted funds.

Revenues are expected to increase in several key areas. Dues revenues are expected to increase by $24,000, and revenues for the Annual Convention and Tech Forum are expected to experience gains of $67,000.

With the exception of a few categories, budgeted expenses have remained the same or experienced minor decreases. As the installation of the internal association management software package nears completion, Information Technology expenses are budgeted to decrease $34,000 when compared to the 2000 budget. Legal and Professional services however are budgeted to increase $300,000 over the 2000 budget. The large increase is due to the Board’s commitment to specific items in the Strategic Plan ($50,000), and the completion of the State Regulatory Compendium ($250,000). See page 32 of Title News for full details on the 2001-2003 Strategic Plan.

ALTA® members can rest assured that their investment in the American Land Title Association® will continue to provide the financial and political resources necessary to protect the interests and further the goals of the title industry in 2001 and beyond. If I can answer any questions, feel free to contact me at 1-800-787-ALTA® or mark_hernick@alta.org .

Exhibit 1: 2001 Approved ALTA® Income And Expense Budget

General Fund Income
Dues	$2,076,496
Investment Income - Operating	30,000
Investment Income - Reserve	963,074
Conventions/Tech Forum	695,000
Title News	75,000
Directory	48,000
Product Services	20,000
Other Income	20,000
Total Income	$3,626,920
General Fund Expense
Legal & Professional Services	$675,000
Conventions	660,000
Committees	230,470
Public Relations	59,300
Rent-Occupancy	194,000
Personnel-Salaries	1,036,500
Personnel-Benefits	145,540
Personnel-Pension	120,720
Travel	242,000
Telephone	47,000
Postage	58,000
Supplies	12,000
Information Technology	21,000
Duplicating	12,000
Title News	115,140
Membership & Leadership Directories	40,000
Bulletins	66,000
Dues & Subscriptions	6,400
Insurance	20,000
Audit	21,500
Product Services	25,000
Miscellaneous	15,000
State Legislative & Regulatory Fund	10,000
Depreciation	60,000
Lobbying Tax	35,000
Contribution to Reserve	0
Total Expense	$3,927,570
General Fund Income Over Expense	0
TIPAC Admin. Fund Income	$32,000
TIPAC Admin. Fund Expense	$32,000

Exhibits

Revenue Chart

Expenditure Chart