Financial Info
Financial Info
Not being a professional bookkeeper, I know there are probably more correct ways of doing things. I also know that I inadvertantly made mistakes – adding a deposit twice, duplicating an invoice, etc. It happens :-)
The CPA has pointed out some changes and corrections for 2009. None of these changes affect the bottom line, they are just more technically correct. I did the best I could using Quickbooks, a great program that is well integrated, but with some limitations as well. It does so much for you automatically which can be a problem and I’m just not a pro!
The accountant is having me make some adjustments to 2008 totals, but since those books are closed, the adjustments will show up in 2009. More on that when he finishes his review.
There are accounts receivable currently that amount to $3,841 for outstanding stallion breedings & advertising. Laura herself owes $790 for a breeding and ads never paid for. - Peggy Ingles
So here’s 2008:
EXPENSES
Advertising: $4,079
We ran classifieds in MAH each issue, total $121. We ran a full page b&w ad in Arabian Horse World in Jan 08 for $300. AHW mistakenly charged Laura’s credit card for this, but I had them refund her and charge Payback’s debit card.
EDITED TO ADD: Almost forgot $22 for a classified ad Laura asked me to purchase for her lost cat 5/28.
The rest was paying for our co-op ads in show programs.
Awards expense: $936.
In February, we purchased 9 award coolers for the Anglos Youth & Sport Horse Nationals from Schneiders for $412.13. A friend of Laura’s had donated money to Payback for any use she saw fit, and Laura instructed me to pay for these coolers from that money, which I did. I have a copy of my email to her confirming the purchase.
At the same time, Payback reimbursed Laura $150 she had spent for the Corporation filing fee by paying $150 to the Guardian Arabian Horse Club through Paypal for her sponsorship of 1 ½ coolers through them.
In May, I ordered a letterman’s jacket for Laura as an example of the ones we would be giving to the 2 Top Sires. I paid for it personally by mistake, transferred the $130 to cover it, then cancelled the order as I found a similar jacket for less. Transferred the money back to Payback less $30 I had paid out for the Payback domain name & hosting, etc. Ordered the new one for $99.88.
We purchased 2 more jackets after SHN for $195.87 and spent $198.39 for the embroidery of the jackets. (I did have a sponsor pay $320 for this expense.)
Bank Fees: $28
Two returned check charges at $5/each and a check order for $18
Dues & Subscriptions: $75
This was for DataSource. Again, Laura is now denying that she ever told me to do this through Payback. I certainly didn’t have a personal need for it, but Payback did and still does.
Misc. Expense: $1,500
If you read the tax return, there was an entry of Misc. Expense totaling $1,500. That breaks down to $750 to the IRS for our 501c5 Non-Profit application and $750 for that previously discussed check that got lost in the mail (Nov 08) that was cancelled. The CPA showed me a better way to handle returned (or in this case stopped payment & replaced) checks so they don’t show up as an expense. I believe there will be an adjustment made to ’09 to reflect that.
Office: $66
Fax to Email Service from Aug thru Dec at $10/month. Toll free fax number that goes directly to an email account. Envelopes, etc. $15.80.
Paypal Fees: $213
This is not the true total for 2008 - another of those adjustments that will be made in 2009. It is, of course, offset by the fees we charged buyers.
Postage/Shipping: $240
Stamps $25.61. Shipping Awards to SHN $106.58. Shipping Laura’s jacket to SHN (Overnight) $108.07.
Prize Money: $46,019
This was total payout for 2008.
Refunds: $1301
Stallion found to be EVA Positive $386.25; Stallion Unavailable for Breeding $789.34; Transfer of stallion to another $125
Software $20
This was for a program to separate out individual site files in the program I utilized to build the Payback site, which was growing fast! Made it possible to upload just Payback when changes were made, which was very frequently.
Website $213
Hosting upgrade to allow more server space $170.83. This turned out to be more space than necessary, so I personally paid in $150 myself to offset the difference and thereby utilize the extra space. (I also did this in 2009, it cost $145 and I paid $125, so Payback’s net cost was really small!) I had also personally paid $38.71 for the original server, and later reimbursed myself $20 for that.
Renew Domain name $21.76/2 years.
INCOME
Advertising: $6,435
This is our co-op ads and classifieds on the Website. I separated them coz I was curious - $770 of that was for Classifieds!
Remember, the co-op ads were not designed as a profit maker. They were a service to the participants.
CC Fee: $1,217
This is the 3% credit card fee we charged, which of course is offset by the fee charged us by Paypal. Not sure if the CPA wants it separated like this for 2009 …I’ll find out ☺
Contributions: $1,100
Cash donations made to Payback with no designation for use.
Interest: $523
Mostly earned from Money Market when interest was over 4% then. 2009 was .75% interest….
Misc. Income: $1,041
$550 for the Raffle Colt; $170 for non-breeding fees; donation for Award jackets $320
Stallions: $70,906
This is for the fiscal (Jan-Dec) year, even though our next year purchases begin Sept 1 of each year.
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2009 INCOME (not final yet)
Advertising - $10,219 – this is from Co-op and Classified Advertising ($740)
CC Fee - $1,249.88 – the 3% we charge for using Credit Cards, which is offset by Paypal fees paid.
Contributions - $350 – This was $250 from the Foleys to fund their award to Pony Finals winner. Also $100 from Spring Valley Ranch for Super Stallion.
Futurity – $100
Interest - $239.65 – Money Market Interest at .7%
Stallions - $51,721.00
EXPENSES
Prize Money - $49,999.96
Advertising - $9,293.95 – This includes all co-op advertising, a poster for at SHN, and 2 Payback sweatshirts ($50) for SHN. (We were thinking of selling shirts etc. as an online fundraiser as well as just being “billboards” at the show)
Awards – $780.35 - Ribbon, Cooler and Embroidery for Super Stallion (funded by sponsor); Pony Final Award funded by Foleys; Jackets and Embroidery for Top Sires.
Bank Fees - $6 (returned check charge)
Dues/Subscriptions - $75 – DataSource Subscription
Miscellaneous - $192 – File Corporate Amendment to satisfy IRS requirements for 501c5.
Office Supplies – $217.44 - Fax to email service $10/mo.; Business cards; Envelopes; Deposit Slips, etc
Paypal Fees - $2,547.80 – This includes 2008 fees of $1166.80 that were inadvertently left off from 2008 year end. (yup, my error)
Postage - $46.33 - $17.60 for Stamps, $28.73 for certified/return receipt mail, etc.
Refunds - $1,640.00
Website Hosting – $20.21 (the total charge was $145.21, but I put in $125 of my personal funds as explained in the earlier expense posting from 2008)
Deposit shorted $.50 8/20/09
Here are several unusual entries to note: One is for someone who paid Laura for one of her horses using a credit card through Payback’s Paypal account, transferred into Payback’s checking account, then I sent a check to Laura for $4,690.12. Three other entries were for Laura’s horse expenses 5/18 $83.95 (antibiotics), $300 transferred out 7/23 then back in 7/27 (to cover a check I had to personally write for Laura’s horse’s show entries for East Coast - as she decided to send the horse last minute -until she could send it) and a 10/1/09 check for $850 to pay the shipper for Laura’s horses going to SHN, as she "forgot" to pay him. (The CPA said these are called “Exchange” account entries, where money comes out/goes right back in.)
NOTE: Laura absolutely paid these three expenditures back quickly by sending a check from her bank directly. Why, you may ask, did these get handled this way? Laura sent 2 of her horses here last year, boarded them nearby, so they could be shown while she was overseas. I live on Soc. Security due to my disability and rely on several public programs for some expenses, such as caregivers. The SSA and State are very vigilant in monitoring bank account transactions of its recipients to avoid fraud. So, as Laura well knew, I could not personally front the money for these three expenses when they came up quickly and had to be dealt with. (I got penalized for the entry fee one too, dammit.) It certainly was not my first choice in how to handle things, but didn't have many options. I guess we will hear how Laura "knew nothing about this," just like everything else. <sigh>
Obviously, these transactions do not affect the bottom line, therefore will probably not show up on the financial statement, but are included in the ledger as they are necessary to balance the books with the bank records. As such, they require explanation.