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As we started this fiscal year with the hype of the New Millennium
and a new horizon, our financial outlook was not something to
celebrate, with a mere $38,000 projected as a surplus. There were no
new monies that could be counted on to turn the Brotherhood around,
there was not projected a large growth in membership and our
Brotherhood was facing a new round of National Negotiations, and I
won't forget to mention our battle for early Railroad Retirement.
Yet with the pessimistic view of the Brotherhood's financial
position as we entered the year 2000, this fiscal year developed into
a pleasant surprise due to the unanticipated trends of the economy.
The change in outlook meant our budget projections were not on target
as there was a loss of membership far lower than expected, and the
final economic returns from the layoff of employes and staff at Grand
Lodge in 1998 were reflected.
In this Annual Report, all of the monies are stated in U.S.
dollars. On March 31, 2000, at the time of this report, the conversion
rate of a U. S. Dollar was One U. S. Dollar equals $1.45 Canadian.
In accordance with Article V, Section 4, of the Grand Lodge
Constitution and Bylaws, I submit the following Report reflecting the
financial condition and activities of the Brotherhood of Maintenance
of Way Employes, covering the period April 1, 1999 through March 31,
2000.
The total income for fiscal year under review, April 1, 1999
through March 31, 2000 was $11,416,339.42 an increase of $32,927.83 or
.29% from the previous fiscal year, April 1, 1998 to March 31, 1999.
The combined income from dues and initiation fees decreased $69,263.82
or .72% from the preceding fiscal year. Income investments increased
$130,024.33 or 11.31 %.
The net expenses for the fiscal year under review, April 1, 1999
through March 31, 2000 were $11,103,807.42 for an operating excess of
$312,532.00. The net expenses for the previous fiscal year from April
1, 1998 through March 31, 1999 were $11,360,705.83 resulting in an
operating excess of $22,705.76 for the period covered by the report
compared to the previous fiscal year. Included in the operating excess
of $312,532 for March 31, 2000 is an accrual of $300,000 to be used
for the 2002 Grand Lodge Convention. In other words our operating
excess would have been $612,532.
In closing, it has been the practice since 1990 to have an Annual
Budget prepared by each Grand Lodge Department and branch office and
subsequently reviewed by the Grand Lodge Executive Board. Many keynote
issues such as the increased cost of Health Insurance, Negotiations
and Legal Expenses were given very close attention and every effort
will continue to be made to ensure that a positive financial position
will prevail.
I wish to thank President Fleming, the Grand Lodge Officers, staff and
employes. I would particularly like to thank Mr. John Pesta,
Administrative Assistant to Secretary Treasurer, and Mrs. Linda
Cassese, the Secretary to the Secretary-Treasurer for more than 9
years and who has served the Brotherhood for 26 years. Due to health
reasons Linda was forced to leave early on a disability pension; Linda
will be missed. I must also give a special thanks to newly appointed
Secretary to the Secretary-Treasurer, Ms. Dixie Hunrath whose
dedication has been displayed over the past 22 years as a secretary at
Grand Lodge, and who has continued the work in the
Secretary-Treasurer's office without pause.
Equally, as well, I wish to thank all of the dedicated System
Officers, and Subordinate Lodge Officers, who have maintained a
devoted commitment to serving our members in times when budget cuts
have reduced Grand Lodge employes, thus increasing everyone's
workload.
Costs Associated with Strike Activities
The following is a report of payments made from the Strike Fund
Trust for the period April 1, 1999 through March 31, 2000. A total of
$162,319.87 was paid from the Trust.
Strike Benefit payments, investment management fees, accounting
fees and bank service charges were the only payments made from the
Strike Fund Trust. At the close of the fiscal year March 31, 2000,
there was a balance of $18,620,756.71 in the Strike Fund.
Payments to members due to the Brotherhood's strike against the
Consolidated Rail Corporation totaled $92,688.00
Investment management fees, accounting fees and bank service
charges totaled $69,631.87.
Independent Auditor's Report
In our opinion, the financial statements referred to herein present
fairly, in all material respects, the financial position of the
Brotherhood of Maintenance of Way Employes as of March 31, 2000 and
1999 and the results of its operations for the years then ended in
conformity with generally accepted accounting principles.
Landgren & Company, P.C.
Certified Public Accountants
| COMPARATIVE BALANCE SHEET |
| MARCH 31, 2000 VERSUS MARCH 31, 1999 |
|
|
Fiscal
Years Ended |
|
|
March 31, |
March 31, |
Increase |
|
2000 |
1999 |
(Decrease) |
| ASSETS |
|
| Cash in banks
and on hand |
$403,621.85 |
$590,635.33 |
($187,013.48) |
| Receivables and
accrued interest (net) |
682,567.63 |
586,788.24 |
95,779.39 |
| Investments in
securities |
19,333,511.57 |
17,628,851.62 |
1,704,659.95 |
| Property used
by Grand Lodge (net) |
446,914.90 |
437,569.40 |
9,345.50 |
| Deferred
charges |
766,890.50 |
773,598.83 |
(6,708.33) |
| Total Assets |
$21,633,506.45 |
$20,017,443.42 |
$1,616,063.03 |
|
|
| LIABILITIES |
|
| Accounts
payable - Systems |
$1,887,141.92 |
$2,353,738.85 |
($466,596.93) |
| Accounts
payable - Local Lodges |
304,472.93 |
215,849.50 |
88,623.43 |
| State &
Provincial Assessment Fund |
67,330.74 |
82,468.20 |
(15,137.46) |
| Accrued
Payroll, Payroll Taxes, Officers' and |
|
| Employes' Savings Bonds |
936,656.65 |
940,802.76 |
(4,146.11) |
| Maintenance of
Way Political League |
1,248.00 |
923.00 |
325.00 |
| Miscellaneous |
304,199.00 |
230,053.77 |
74,145.23 |
| Total Liabilities |
$3,501,049.24 |
$3,823,836.08 |
($322,786.84) |
|
|
|
|
| RESERVES |
|
| Negotiation
Fund |
$426,430.25 |
$126,225.00 |
$300,205.25 |
| Emergency Fund |
6,354,679.64 |
5,811,105.07 |
543,574.57 |
| State and
Provincial Legislative Fund |
378,337.76 |
16,009.12 |
362,328.64 |
| Relief Disaster
Fund |
71,270.99 |
72,470.99 |
(1,200.00) |
| Total Reserves |
$7,230,718.64 |
$6,025,810.18 |
$1,204,908.46 |
| Total Reserves and Liabilities |
$10,731,767.88 |
$9,849,646.26 |
$882,121.62 |
|
|
|
| GENERAL FUND |
$10,901,738.57 |
$10,167,797.16 |
$733,941.41 |
|
| Total
Liabilities, Reserves and Fund |
$21,633,506.45 |
$20,017,443.42 |
$1,616,063.03 |
|
|
|
|
|
|
| CONDENSED COMPARATIVE STATEMENT |
| OF INCOME AND EXPENDITURES |
| MARCH 31, 2000 VERSUS MARCH 31, 1999 |
|
|
|
Fiscal
Years Ended |
|
|
March 31, |
March 31, |
Increase |
|
2000 |
1999 |
(Decrease) |
| INCOME |
|
| From members |
$9,607,132.03 |
$9,676,395.85 |
($69,263.82) |
| Checkoff
receipts - miscellaneous |
93,519.48 |
105,301.75 |
(11,782.27) |
| Sale of Lodge
supplies and sundry |
6,705.14 |
6,942.68 |
(237.54) |
| Purchase
discounts and miscellaneous |
222,307.86 |
238,831.97 |
(16,524.11) |
| From
investments |
1,279,284.50 |
1,149,260.17 |
130,024.33 |
| Conversion of
funds |
29,712.09 |
3,178.64 |
26,533.45 |
| C R L O
income |
123,351.54 |
153,704.45 |
(30,352.91) |
| Highland Park
Building Income |
22,439.05 |
18,091.76 |
4,347.29 |
| Lease income -
Canadian Building |
31,887.73 |
31,704.32 |
183.41 |
| Total Income |
$11,416,339.42 |
$11,383,411.59 |
$32,927.83 |
|
|
| EXPENDITURES |
|
| Officers'
expenses |
$1,915,067.72 |
$1,374,559.24 |
$540,508.48 |
| President's
Department expenses |
3,031,883.62 |
2,293,991.75 |
737,891.87 |
| Secretary-Treasurer's
Department expenses |
2,018,773.80 |
1,358,622.06 |
660,151.74 |
| Legislative
expenses |
668,423.56 |
627,791.18 |
40,632.38 |
| Organizing
expenses |
429,699.82 |
321,851.03 |
107,848.79 |
| Miscellaneous
Departments' expenses |
643,584.13 |
902,591.33 |
(259,007.20) |
| Journal costs |
311,902.98 |
293,864.39 |
18,038.59 |
| Emergency Fund |
124,621.97 |
131,246.75 |
(6,624.78) |
| Death Benefit
Department |
275,331.29 |
301,914.14 |
(26,582.85) |
| General
Expenses |
1,684,518.53 |
3,754,273.96 |
(2,069,755.43) |
| Total Expenditures |
$11,103,807.42 |
$11,360,705.83 |
($256,898.41) |
|
| Excess of Expenditures over Income |
$312,532.00 |
$22,705.76 |
$289,826.24 |
|
|
|
| ANALYSIS OF TRANSACTIONS |
| IN RESERVE ACCOUNTS |
|
|
| STRIKE FUND TRUST |
|
|
Fiscal
Years Ended |
|
|
March 31, |
March 31, |
Increase |
|
9607132 |
9676396 |
(Decrease) |
|
|
| Balance,
Beginning of period |
$17,664,661.94 |
$16,857,234.76 |
$807,427.18 |
|
| Special
Assessment: |
|
| First Quarter: April, May and June |
0.00 |
45.00 |
(45.00) |
| Second Quarter: July, August and September |
0.00 |
55.00 |
(55.00) |
| Third Quarter: October, November and December |
0.00 |
25.00 |
(25.00) |
| Fourth Quarter: January, February and March |
0.00 |
0.00 |
0.00 |
| Interest income - allocated |
1,092,676.05 |
1,092,676.05 |
0.00 |
|
$1,118,414.64 |
$1,092,801.05 |
($125.00) |
| Disbursements |
162,319.87 |
285,373.87 |
(123,054.00) |
| Balance, end
of period |
$18,620,756.71 |
$17,664,661.94 |
$930,356.18 |
|
|
| EMERGENCY FUND |
|
|
| Balance,
Beginning of period |
$6,231,536.07 |
$6,096,721.32 |
$134,814.75 |
|
|
| Allocation of
portion of Grand Lodge dues: |
|
| First Quarter: April, May and June |
32,836.75 |
33,882.75 |
(1,046.00) |
| Second Quarter: July, August and September |
34,293.75 |
35,351.50 |
(1,057.75) |
| Third Quarter: October, November and December |
33,830.35 |
34,255.25 |
(424.90) |
| Fourth Quarter: January, February and March |
30,045.25 |
31,325.25 |
(1,280.00) |
|
$131,006.10 |
$134,814.75 |
($3,808.65) |
|
Disbursements - Unrealized loss on currency |
|
|
exchange |
7,862.53 |
420,431.00 |
(412,568.47) |
| Balance, end
of period |
$6,354,679.64 |
$5,811,105.07 |
$543,574.57 |
|
|
|
|
|
| STATE AND PROVINCIAL LEGISLATIVE FUND |
|
|
Fiscal
Years Ended |
|
|
March 31, |
March 31, |
Increase |
|
9607132 |
9676396 |
(Decrease) |
|
|
| Balance,
Beginning of period |
$16,009.12 |
($243,064.19) |
$259,073.31 |
|
|
| Allocation of
portion of Grand Lodge dues: |
|
| First Quarter: April, May and June |
105,077.60 |
108,424.80 |
(3,347.20) |
| Second Quarter: July, August and September |
109,740.00 |
113,124.80 |
(3,384.80) |
| Third Quarter: October, November and December |
108,256.80 |
109,616.80 |
(1,360.00) |
| Fourth Quarter: January, February and March |
96,144.80 |
100,240.80 |
(4,096.00) |
| Transferred
form State Assessment Fund |
263,616.14 |
302,468.55 |
(38,852.41) |
|
$682,835.34 |
$733,875.75 |
($51,040.41) |
| Disbursements |
320,506.70 |
474,802.44 |
(154,295.74) |
| Balance, end
of period |
$378,337.76 |
$16,009.12 |
$362,328.64 |
|
|
| RELIEF DISASTER FUND |
|
|
| Balance,
Beginning of period |
$72,470.99 |
$74,870.99 |
($2,400.00) |
|
|
| Contributions
to Fund from Grand Lodge, |
|
| Systems and Subordinate Lodges |
|
| First Quarter: April, May and June |
0.00 |
0.00 |
0.00 |
| Second Quarter: July, August and September |
0.00 |
0.00 |
0.00 |
| Third Quarter: October, November and December |
0.00 |
0.00 |
0.00 |
| Fourth Quarter: January, February and March |
0.00 |
0.00 |
0.00 |
|
$0.00 |
$0.00 |
$0.00 |
| Disbursements |
1,200.00 |
2,400.00 |
(1,200.00) |
| Balance, end
of period |
$71,270.99 |
$72,470.99 |
($1,200.00) |
|
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|
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