A Sound Foundation
The primary purpose of this annual report is to inform members of the financial status of our Guild, but it also provides us with the opportunity to write to you on a wider range of issues which the Guild has dealt with over the last year.
Last year our attention was overwhelmingly focused on negotiations. On May 4th, 2001, we reached an agreement with the Alliance of Motion Picture and Television Producers (AMPTP), ABC, CBS and NBC that included significant economic and creative improvements without a strike. On June 4th, 2001, our members overwhelmingly ratified the proposed contract with a 92% vote to accept.
The following sections of this annual report should provide you with an overview of members' employment patterns, the results of our negotiations and a brief review of Guild activities.
On the financial front, for the fiscal year just closed on March 31, 2001 (FY 2000-2001), Guild operations ran a net surplus of $1,304,781. This is largest surplus the Guild has ever enjoyed and is the result of a number of one-time events--many related to the just-completed negotiations. Typically the Guild has enjoyed healthy, but relatively modest, surpluses that have given us the means to effectively pursue the interests of our members. In our budgeting for the upcoming fiscal year, we anticipate we will return to a regime of much more modest surpluses.
What were the one-time events that lead to this unprecedented and probably unique performance? The first of these was a significant unrealized gain on the value of our investments on the order of $250,000. In other words, we saw a significant increase in the market value of our investment portfolio. Accounting standards require us to recognize that increase as revenue even though we did not see actual cash income. Also, the overwhelming focus of the Guild on the conduct of negotiations last year caused us to defer or reschedule a number of events or initiatives that otherwise would have been pursued in the course of the last fiscal year.
Currently we are in a position of superior financial strength to meet the challenges that may lie ahead of us.
- A combined Strike Fund and Good and Welfare Fund balance of more than $10 million.
- Unrestricted cash reserve of almost $7 million.
- A line of credit up to $4 million.
- Untapped equity in the Guild headquarters of almost $5 million.
We will continue to pursue the course of conservative financial management that has characterized the Guild for the past decade.
Continuing with the practice of disclosing reimbursable expenses incurred by your Officers and Board, please be advised of the following. Last fiscal year, the Guild reimbursed the Officers $1,643 and the Board of Directors $3,649 for official Guild business. President John Wells incurred no reimbursable expenses. Total reimbursable expenses for Vice-President Daniel Petrie, Jr. and Secretary-Treasurer Michael Mahern totaled $686 and $957, respectively.
I would like to thank the members of the Membership-Finance Committee for their deep commitment to the complicated and time-consuming task of managing the Guild's finances--especially vice-chair Cynthia Thompson. I also want to thank Adam Rodman, Patric Verrone and Elias Davis for their dedicated service to this committee. Thanks also go to the staff members who run our Membership and Finance operations: Corrine Tippin (Membership), Alice Lee (Dues), Don Gor (Finance) as well as Paul Nawrocki (Assistant Executive Director).
I trust you will find the information within these pages useful. We pride ourselves on keeping you informed about Guild business, and we hope this Report to Writers helps to fulfill that commitment.