20 July 2009
I have reviewed the Financial Statements for the six months ending June 30. NCF is reporting a surplus for the period in the amount of $9,291. This represents a positive variance when compared to the year to date budget ($2,000 deficit).
There are a number of reasons for the positive YTD variance. The DSL revenue from service and hardware is approximately $16,000 less than planned but with the savings in DSL line expenses of close to $10,000 the overall effect of DSL is a net negative variance of $6,000. The overall positive variance is therefore made possible by the cost savings in hardware/software expense ($9,000) and office staff expenses ($5,000).
You will see from the report that breaks down the revenue and expense into the various categories that in spite of the lower than anticipated DSL revenue the DSL is contributing a net margin of $35,000. It should also be noted that the margin on the dial up is over $34,000.
The current reserve fund, including the surplus year to date is $106,000. The organization is in a very liquid position with over $140,000 in cash and short term investments.
National Capital FreeNet