Executive VP's Report
Doug Holland
AMA Executive VP
Last month I presented the Statements of Activities for your information. That statement shows the results on an accrual basis—accounting for all items of income whether they have been received and for all expenses whether or not they have been paid.
This month the Statements of Cash Flows are presented for your consideration. That statement shows the net results of the cash operations of the business. Under Operating Activities, you can see the net changes in the accounts listed. The Net Cash Provided by Operating Activities was $120,853 for the year 2001 compared to $1,760,741 for the year 2000.
Key sections of the Statements of Cash Flows:
- Operating Activities: Shows net changes in operating accounts and the net cash provided by operations ($120,853 in 2001 vs. $1,760,741 in 2000).
- Investing Activities: Not shown on the Statements of Activities; shows investments in property and equipment and where certain assets were sold or bought. Much of this activity occurred in the stock market where items were called or matured and then reinvested.
- Financing Activities: Shows items such as the receipt of bond proceeds during the past year.
- Cash and Cash Equivalents: Shows balances at the end of each year. The increase for 2001—even though there was a net asset decrease from operations—was caused by the receipt of bond proceeds.
As I write this, the Executive Council will meet this week, and we will attempt to put a dollar amount on the increase needed to assure a sound fiscal policy for AMA. The optimist will call this the best of times; the pessimist is afraid he's right.
Always be courteous. Until later.
Transcribed from original scans by AI. Minor OCR errors may remain.
