National Capital FreeNet / Libertel de la Capitale nationale

Monthly Report of Treasurer
August 2002, for the preceding month

1) Segregated cash relates to HRDC thin client. This is directly offset by a liability called "Unearned revenues" as we receive this money is advance of expenses incurred. You can somewhat just ignore these two balances, suffice to say that we are able to recuperate some expenses before we actually have to fork out the cash.

2) Accounts receivable of $16,670 relates to Smart Capital Projects. This amount is receivable because we have completed the services but receive the money only every three months to make up for past work done. This represents work in the 4 months since April .

3) There was a purchase of a Compaq server that has been an addition of $12,437 to Computer Equipment during the month. Note again the Accumulated amortization is only calculated quarterly and therefore is unchanged from last month.

4) Again accounts payable includes $3,035 of vacation accrual which is a figure we just calculate on a yearly basis. Given we are at the end of our vacation period this may be overstated at this time.

5) We are below budget again for donations associated with Renewals. During the month Rudy, Ian and I spent some time revising the budget to reflect actuals for the first 6 months and newly projected budget for the year based on the yearly experience to date. We ran through six different scenarios using three donation revenue levels and two alternative fixed cost alternatives. All showed a projected operating deficit (expenses greater than revenues) for the year, and all but the most pessimistic cases showed a net projected surplus for the year after taking into account the refund from 3com and the subsequent purchase of the replacement terminal servers.

The budgeted revenue was revised to compare for each month the percentage of donation revenue separated by registration and renewals as a percent of that received in the corresponding month of the preceding year. This showed that in the current year, we have been receiving an average of 107% (more) in registration donations and an average of 94% (less) in renewal donations. We then used these percentages to reflect the rest of the year.

Gibby Armstrong, Treasurer