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Thomas Dow, Editor |
State of DPC
Recently, I announced my resignation as DPC Treasurer and trustee effective November 30, 2003. The upcoming tax season will limit the amount of time I can devote to the club to a level less than required. I would like to use my final day as DPC treasurer to brief you all on the financial state of the club and the improvements made by your board over the last couple of years. In the simplest terms, the club is financially and organizationally stronger than it has been in several years. The past two years have been trying and the trustees were tasked with making tough decisions. Although not all of their decisions were “popular” with everyone, they were (in my opinion) made with the long term interest of the club at heart. Areas of improved strength include:
INSURANCE
The insurance headaches are behind us, thanks in no small part to the excellent safety record of the members. Our annual premium has been reduced to approximately one third of the previous amount.FLEET
The fleet and associated overhead (i.e. hanger, insurance, crew credit, etc.) have been reduced commensurate with the membership level. Costs associated with an oversized fleet can hurt the long term strength of the club. There are those that see our current membership size as a negative; I am not one of them. The current membership level (88 members) consists of members that are more involved in all flying and social aspects of the club than were those who resigned. Renter type members are not in the long term best interest of the club.DEBT
Debt obligations of the club have been reduced by over $90,000 from the level at March 31, 2002. The cost of carrying that debt (i.e. interest expense) has been reduced accordingly.INACTIVE MEMBERS
Progress has been made in identifying and paying those inactive members that have no interest in returning to active status. The amount DPC owes to the inactive members has been reduced by over $8,000 from the March 31, 2002 balance.RESTRICTED CASH
The club now sets aside cash to cover the cost of engine replacements. In the past, the cost associated with engine replacements were accounted for, however no cash was ever allocated towards paying the eventual bill. The cost of paying for an engine would cause a cash flow panic in the past. Now, the cash is available when needed.ACCOUNTING / BILLING
The software used by the club for accounting and billing has been modernized and allows for the detailed collection of financial information. Such information is one more tool trustees can use to make informed management decisions. The billing process is now integrated with the accounting system and has eliminated the extra steps (and the $150 monthly fee) previously required to accomplish the monthly billing.SCHEDULING
The transition to Schedule Master was completed at the beginning of November. The trustees expect to see increased efficiency in fleet usage with a reduction in scheduling related difficulties.DUES CREDIT
The trustee’s position and several of the other support positions no longer receive a credit for the work required. A sense of “volunteerism” has been restored whereby the members who make up the club and benefit from its existence are encouraged to participate in its success.It has been a productive time. As you can see, the club has put many of its problems behind it with a stronger DPC as a result.
- Dave