Greetings:

We are pleased to submit the budget for the fiscal period 2010/2011. Our fiscal period has been changed to run from September 1 to August 31. This change was made to facilitate a full 12-months term for reports. Prior to this change, our fiscal period ran from January to December. The downside to this period is that conventions are usually held on Labor Day weekend, meaning early September. Hence, reports submitted at the conventions reflect only nine months of operations. With the switch, reports will reflect the entire term of 12 months of operations.

We have come to this position, National Treasurer, fully committed to be a functional member of this team and pledge to put our best forward. Just as in your case, we strongly believe that with defined goals and objectives coupled with team efforts, we can climb the highest mountain.

Executive Summary

The Budget comprises the following statements: Cash Statement, Statement of receipts, Personnel cost funding statement, Project cost funding statement, and Operational Cost statement. Also attached are various schedules to support the numbers.

The numbers generated in this budget are based on our proposal submitted to the Board immediately following our appointment. We realized then and still hold the premise that a modified version of the Reconstruction Contribution initiatives launched in 2007 by the outgoing Treasurer, Dr. Yede Dennis, and her team of experts, would rekindle and energize the interests of the membership.

We proposed that instead of a payment of $1,000.00 yearly per member, the amount be adjusted to $300.00 yearly and paid over a period of three years. This adjustment actually means a monthly payment of $25.00. We also proposed that out of the $300.00 payment, $100.00 will be credited to the individual’s account as payment of the annual dues.

In support of our proposal, we structured three different schedules using the total of 242 head counts as our basis to reflect various assumptions. The assumptions include: (1) 75% receivables; (2) 80% receivables and (3) 85% receivables. As a compromised assumption, the receipts contained in this budget reflect 80% budgeted receipts.

This budget also takes into account a network arrangement made between the Alumni Associations of America and Liberia on one hand and the Diocese on the other. The arrangement which we refer to as “three-way sharing network” entails collaborating and sharing funding in some instances.

For an analysis of estimated membership payments by state, see the April 2010 summary and the August 2010 revised summary (in PDF format).

Cash Statement

The cash statement summarizes cash inflow and outflow. It also shows the total cash balance brought forward as at the end of August 2010. The ending balance as at the date indicated is $35,992.00. (See the breakdown below).

On the basis of our projections and confidence that the membership is committed to giving back, we believe that we will generate adequate funding to facilitate proposed projects and by the close of the fiscal period, have an ending balance in excess of our current opening balance.

See the Cash Statement budget for details (in PDF format).

Cash Receipts Budget

Reflects estimates of receipts from reconstruction initiatives, annual dues, donations, DVD sales, convention activities and interest income.

In calculating the budgeted receipts from reconstruction initiatives and annual dues, it was assumed that out of the 242 head counts, 80% of the members, about 199 head counts, will be committed to making payments. It is also assumed that the Board will constitute a committee that will be assertive and diligent in charting collections process.

Receipts from reconstruction and dues are estimated at $59,700.00. Of this amount, $39,800.00 accounts for reconstruction and $19.900.00 accounts for yearly dues.

Other receipts include: DVD sales and donations totaling $2,080.00, convention activities and interest income totaling $1,600.00.

Summary of Cash Receipts

See the Receipts budget for details (in PDF format).

Personnel Costs Funding

This entails funding of salaries/wages and housing allowance for principals, administrative staff, teachers and support staff. The total budgeted salaries/wages for the year is $13,797.00. This amount includes $9,405 for the high school, $2,892 for the elementary school and $1,500 for a school nurse. Housing allowance accounts for a total of $1,304. This represents a monthly payment of $15.00 across the board for principals, teachers and staff.

The combined personnel costs are estimated to be $15,101. This number represents 60% of the 57.8% allotted to the Alumni Associations of US and Liberia by the Diocese. The total personnel costs annually are estimated at $37,920. In a three-way sharing network: the Diocese is funding 42.2% and the Alumni Associations are funding 57.8%. For details, see the Cost Summary Sheet (in PDF format).

Please note that the approved budget from the Diocese does not make provision for a School Nurse. By advice of the President, we have made the provision to facilitate the employment of a school nurse.

Summary of Personnel Costs

For details, see the Payroll budget and the Elementary School and High School Payroll Details (in PDF format).

Project Costs Funding

This entails funding a minimum of one project every year. For this fiscal year, we have identified Renovating the Elementary School building as the project of the year. The total cost of this renovation is $20,000. We have engaged the “three-way sharing network” to jointly undertake this project. The Diocese has informed us that they can not make a decision on this project until they meet in February of 2011. The allocation of the $20,000 is at follows: $8,000 representing 40% allocated to the Diocese, and the balance 60% shared 60/40 between the two Associations, with America funding $7,200 and Liberia funding $4,800. With the development from the Diocese to wait until a decision is made in February, we proceeded with the budgeting of the total costs to be funded by the Alumni Association of America. This is possible if we are committed to collecting all expected receipts.

Additionally, we have budgeted $5,000.00 to facilitate repairs of damages to the high school building caused by erosion. This is considered urgent to avoid a bigger problem. Included in the attached schedules are photos of the damages.

For details, see the Projects budget and the Rehabilitation Project summary (in PDF format).

Operational Costs

The Operational Costs are the costs of operating the Alumni Association of America. These costs include professional and audit fees, shipping, travels, postage and office supplies. The total of operational costs is $9,125.00.

This includes $3,000.00 for audit fees. It is important to note that financial growth means proper accountability. The best indicator of such is the vetting of the accounts by a certified independent institution.

Included in this amount is $3,500 for travels. With the kind of outlay, it is important to at least once a year have someone visit Liberia to verify what ever activities we are engaged in. We have also made provision for a consultant who will be employed to solicit grants and write out grant proposals.

For details, see the Operations budget (in PDF format).

Conclusion

We consider a major accomplishment the achievement made by the Board in engaging a three way arrangement with the Diocese and the Alumni Association of Liberia to collaborate efforts in rebuilding the schools. This arrangement has built a major bridge and reinvigorated not only the interest of the members of the Alumni Association of Liberia, but the Diocese as well. We in America have charted the course and we must continue to lead. Our individual $300 can make this happen, so why not go for it.

William C. Paasewe
National Treasurer
EES/EHS ALUMNI ASSOCIATION OF AMERICA