Home News ASFA VP Finance expects deficit

ASFA VP Finance expects deficit

by Gregory Todaro March 22, 2016

The anticipated imbalance could be as high as $32,000

The Arts and Science Federation of Associations is facing a deficit of up to $32,000 for this academic year.

The organization, which has an annual operating budget of $74,453.15, will not have to dig into the savings required by the bylaws, according to VP finance Christina Massaro.

“We are in a deficit, but we’ll be fine,” she said. “We’re going to go over budget, but money-wise we had a bigger cushion than expected.”

ASFA bylaws require the organization to maintain at least $150,000 in its account to ensure its continuity. Even if the deficit reaches the maximum $32,000 predicted, ASFA will not need to dip into those savings.

Massaro said ASFA may not even hit a deficit that high, and that this prediction is a worst-case scenario.

“The deficit is only if we spend the total amount in every single budget line,” she said, adding that this deficit prediction is based on using the full amount budgeted for each line—something which does not frequently occur.

“For example,” Massaro added, “I know we can find $5,000 from [the office manager] not being hired, so not paying those wages. There are also other lines that aren’t completed as well.”

ASFA did, however, go over-budget in legal fees this year: the fees for working on the settlement with Mei Ling announced in mid-November and additional consultations for the restructuring of ASFA’s bylaws for the referendum question cost the organization $5,518—well over the original budget of $300.

ASFA also had around $4,700 of various expenses left over from last year, and also went $400 over-budget for their byelections.

 

Grad Ball

 

ASFA council approved transferring an additional $8,000 for the organization’s annual Graduation Ball at its special council meeting on Thursday.

Councillors voted to send $5,000 from ASFA’s budget and $3,000 from the group’s Special Project Fund to contribute to the event.

The unofficial total budget for the event is $53,651. An ASFA councillor involved with the project said revenue is expected to reach up to $43,000. However, these figures are not set in stone as the group is still searching for sponsorships and working with caterers to find the best deal.

ASFA Council discussed a motion during the February regular council meeting for $18,000 in additional funding for Grad Ball, but the item was tabled.
“We don’t know where ASFA is [financially] right now,” said ASFA VP internal Robert Young during the February meeting. But since then, Massaro has met with the group’s accountant to get a better idea of what the group’s financial situation is.

Related Articles