2022 Atlanta Board of Trustees Meeting

• The OMA accountants will usually provide at least two financial statements: o Balance Sheet with comparison of this year to last year o Profit & Loss Budget Performance (similar to “Income Statement”) ▪ Name reflects that “Not for profit” do not have “income” ▪ Incorporates information from the separate “OMA Budget,” allowing a comparison of budgeted revenue and expenses vs actual revenue and expenses ▪ Number figures not in parentheses: overbudget ▪ Number figures in parenthesis: underbudget ▪ Positive effect on balance: revenue in “over budget” column not in parentheses and expenses in parentheses ▪ Negative effect on balance: revenue in “over budget” column in parentheses and expenses not in parentheses • Investment gains or losses o Transfer of money to and from investment account does not affect Profit & Loss Budget Performance (however, will affect Balance Sheet) o Beyond transfer, gains or losses in investments are included in the “Net Income” as reported in the Profit & Loss Budget Performance monthly and year-to-date (YTD) o “Net ordinary Income” Pr ofit & Loss Budget Performance is income less expenses, independent of investment gains or losses. Net ordinary income is reflective of the “operational” performance of OMA, independent of gains or losses in investments and is a key metric to discuss that complements investment gains or losses o “Other expenses” in the Profit & Loss Budget Performance may include: ▪ Investment accounting services ▪ Loss on equipment (abandoned, not depreciation) ▪ Special carve out expenses (see “INVESTMENT SPENDING DISTRIBUTION P OLICY” below)

WHAT FINANCIAL REPORTS MIGHT THE OMA TREASURER DISCUSS WITH THE EXECUTIVE DIRECTOR BEFORE OMA BOARD OF TRUSTEES MEETINGS?

• Budget summary: Current and next year budget o Operating Revenue o Operating Expense o Net Revenue (net loss or gain)

• OMA Budget Worksheet (line by line listing of anticipated income and expenses) o Income: Membership, meetings (Spring and Fall Conferences), and Digital CME are typically the largest sources of revenue. However, it is worthwhile for the Executive Director and Treasurer to go line-by-line and determine if any needless expenses exist o Expenses: Conferences and staffing are typically the largest expenses o The OMA Board of Trustees will need to review the prior year’s budget and approve the subsequent year’s budget

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