Northeastern Region of the NMRA

Balance Sheet

Jun 30, 2014 Jun 30, 2013

ASSETS

Current Assets

Androscoggin Bank C/A 10,595 7,661

RI Div reimb receivable 9 0

Total Current Assets 10,603 7,661

Other Assets

Marketable Securities (FMV)

RBC Fixed Income Investments 7,433 6,880

RBC International Equities 18,053 15,544

RBC Money Market Fund 55 291

RBC US Equities 25,677 21,388

Total Marketable Securities 51,218 44,104 16% growth in last fiscal year.

Security Deposits Asset 400 400 Postage deposit at Rapid Press

Total Other Assets 51,618 44,504

TOTAL ASSETS 62,221 52,164

LIABILITIES & FUNDS

Funds

General Operating Invested Fund 30,311 26,101

Life Member Equity Fund (B Dir) 19,513 16,803

Perm. Restricted Net Assets

Spate Award Fund (Restricted) 1,394 1,200

Total Perm. Restricted Net Assets 1,394 1,200

Unrestricted Net Assets 11,003 8,061

Total Funds 62,221 52,164

TOTAL LIABILITIES & FUNDS 62,221 52,164

Note: This report does not reflect assets in the Convention Fund managed by the NER

Convention Committee Treasurer. Target cash balance in the Convention Fund is $4,000 per

the bylaws, plus it has acquired equipment to be used at NER conventions.

Attachment 1

Northeastern Region of the NMRA

Statement of Revenues, Expenditures and Changes in Fund Balances

Fiscal Year Ending June 2014

ACTUAL

TOTAL

UNRESTRICTED

FUND

GENERAL

OPERATING

INVESTED

FUND

SPATE

AWARD FUND

LIFE MEMBER

EQUITY FUND

Ordinary Income/Expense

Income

Convention Fund Transfer 1,724 1,724

Coupler Advertising 150 150

NMRA Rebate income 3,016 3,016

Subscriptions for newsletter 6,129 6,129

Total Income 11,020 11,020

Expense

Business Expenses

AP expense 714 714

Business Registration Fees 25 25

Communications expense 149 149

Coupler printing expenses 3,818 3,818

Credit Card Expense 28 28

Internet expenses 741 741

Office expense 18 18

Total Business Expenses 5,492 5,492

Other Types of Expenses

Distributions to NER divisions 2,593 2,593

Investment Management Expense 736 436 20 280

Total Other Types of Expenses 3,329 2,593 436 20 280

Total Expense 8,821 8,085 436 20 280

Net Ordinary Income 2,199 2,935 -436 -20 -280

Other Income/Expense

Other Income

Investments

Capital gain dividends 2,140 1,266 58 815

Dividend income 539 319 15 205

Gain on sale of investments 127 75 3 48

Interest - checking account 8 8

Unrealized net gains (losses) 5,045 2,985 137 1,922

Net Other Income 7,859 8 4,646 214 2,991

Net Change in Balances 10,057 2,943 4,210 194 2,710

Fund Balances beginning of year 52,164 8,061 26,101 1,200 16,803

Fund Balances end of year 62,221 11,003 30,311 1,394 19,513

59.2% 2.7% 38.1%

Attachment 2

Treasurer's Account Net Assets

6/30/2013 52,164.09

($50,000) (50,000.00)

Growth >$50K 2,164.09

50% 1,082.05

Lastest NMRA

rebate check 1,511.00

Rebate + 50% of

Net Asset Growth 2,593.05

Active Divisions

Members per latest

available NMRA

roster Distribution Check Number

Central New York 69 106.69 608

Garden State 250 386.56 609

Green Mountain 48 74.22 610

Hub 355 548.92 611

Hudson Berkshire 166 256.68 612

Hudson Valley 55 85.04 613

Little Rhody 72 111.33 614

Metro North 70 108.24 615

Nutmeg 222 343.27 616

Seacoast 177 273.68 617

Sunrise Trail 193 298.42 618

Totals 1677 2,593.05

NMRA funds distributed per member: 0.90 58%

NER funds distributed per member: 0.65 42%

Total distribution per member: 1.55 100%

NER ANNUAL DISTRIBUTION TO DIVISIONS CALCULATION 10/20/13

Attachment 3

Northeastern Region of the NMRA

Proposed Budget for FYE June 2015 for Board Consideration

INCOME

Coupler advertising revenue 150

NMRA rebates 3,000

Subscriptions for The Coupler 6,000

Convention Fund transfer 1,000

Total budgeted income 10,150

EXPENSES

AP Expenditures 800 Last year was $714.

Corporate registration 25

Communications expense

(LogMeIn)150

The Coupler printing and postage

expenses6,500

Credit card expense (on NMRA

collection of subscriptions for The

Coupler)

30

Internet fees 50

Office expenses 200

Distributions to divisions of NMRA

rebates (September/March)3,000

Annual Meeting distributions to

the divisions (9/14/14)5,621

Investment management fees 1,000

Total budgeted expenditures 17,376

Budgeted surplus/ (deficit) before

investment income(7,226)

Total investment returns 3,000

Projected Net Change in Fund

Balances(4,226)

If the actual performance for the fiscal

year is below zero, there will be no

additional division distribution by the

Annual Meeting of 2015.

Depends on NE Diamonds results. It could

be zero, or much more than $1,000.

CommentsBudgeted Amounts for FYE

2015

The July 2014 issue (election issue) was

$1,400 more expensive than average.

Newly clarified policy is to distribute all

that is received from NMRA.

Application of newly clarified division

distribution policy determines this amount.

This is approximately a 6% yield on the

currently invested funds. In the prior year,

the return was approximately 16%.

Attachment 4

NORTHEASTERN REGION NMRA

FYE June 2014 Budget Comparison

REVENUES BUDGET BUDGET

RESTATED ACTUAL VARIANCE

Subscriptions (Coupler) 5,950 5,950 6,129 179

Investment Income 5 5 8 3

NMRA rebates 3,000 3,000 3,016 16

Transfers to Divisions (1,500) (1,500) (2,593) (1,093)

Conventions 6,000 1,000 1,724 724

Coupler Advertising 100 100 150 50

Total Revenue 13,555 8,555 8,434 (121)

EXPENSES

Contributions 500 500 - (500)

Coupler 5,500 5,500 3,818 (1,682) Cost of 3 issues, only

AP Program 500 500 714 214

Awards 50 50 (50)

Business registration fee 25 25

Conventions 5,000 - -

Contingency 300 300 (300)

Office expense 200 200 18 (182)

Meetings 200 200 - (200)

Advertising/Promotions 250 250 (250)

Communications expense 149 149

Internet service fees 741 741

Credit card expense 27 27

Total Expenses 12,500 7,500 5,492 (2,008)

Net Change 1,055 1,055 2,942 1,887

MANAGED INVESTMENT ACCOUNT

Capital gain dividends 2,140 2,140

Dividend income 539 539

Gain on sale of investments 127 127

Unrealized net gains (losses) 5,045 5,045

Investment Management Expense (736) (736)

Net Investment Yield 7,114 7,114

Attachment 5

NORTHEASTERN REGION OF THE NMRA

Calculation of 2014 Distribution to the Divisions

Div

isio

n #

Division

Members (per

NMRA Roster

report as of

June, 2014)

Members of

Active

Divisions

Percentage

Share

Remaining

Distribution

to Divisions

for FYE June

2014

Benchmark

Financial

Reserve

Amount

Unassigned 3

1 Sunrise Trail 179 179 11.0% 621.06

2 HUB 322 322 19.9% 1,117.22

3 Alouette 42 -

4 Garden State 237 237 14.6% 822.30

5 Nutmeg 216 216 13.3% 749.44

6 Little Rhody 70 70 4.3% 242.87

7 Hudson-Berkshire 169 169 10.4% 586.37

8 Seacoast 192 192 11.9% 666.17

9 Hudson Valley 56 56 3.5% 194.30

10 Central New York 70 70 4.3% 242.87

12 Maritime 24 -

13 Green Mountain 39 39 2.4% 135.32

14 Metro North 70 70 4.3% 242.87

1,686 1,620 100.0% 5,620.81

Initial Benchmark Financial Reserve Amount (2013) 50,000

NER TREASURER'S ACCOUNT NET ASSETS LESS RESTRICTED FUNDS62,221.45

Less Account Receivable (8.99)

Less value of restricted funds (Spate Award Fund) (1,393.81)

(1,505.00) 59,313.65

6/30/2013 before distribution to divisions 52,164.09

Less value of restricted funds (1,200.20)

Distribution to divisions 9/30/13 (1,082.05) 1,082

New benchmark for NER financial reserve for FYE 6/14 51,082.04 51,082

Net Increase 8,231.61

Half retained by NER 4,115.81 4,116

NER financial reserve benchmark for next distribution for FYE 6/15 55,198

Impact per

Member

Half to be distributed to divisions 4,115.81 2.54$

Plus distribution of NMRA Region Rebate Remittance 2/28/14 1,505.00 0.93$

Amount to be distributed to divisions by Annual Meeting (9/14/14) 5,620.81 3.47$

Less NMRA Region Rebate Remittance for six-

months ended 2/28/14 (to be paid 9/14/14))

6/30/2014 NET ASSETS

Attachment 6

RESOLUTION FOR NEXT NER BOARD MEETING Prepared by Peter McKenney, Treasurer, August 21, 2014

Discussed with President Youst

1 Attachment 7

Whereas the Northeastern Region NMRA wishes to offer consistent and substantial financial support to its active divisions and has attained a satisfactory level of financial reserves in order to afford to do so, but has considered over the past few years various terms for determining the time for and the amounts to distribute, and has partially implemented its policies, it is important to state a clear, comprehensive and detailed distribution policy that can be followed easily by future officers and directors. Therefore, be it resolved that:

1. The Board of Directors ratifies the distributions made to the active divisions by checks dated September 30, 2013, and distributed to the divisions’ representatives on October 20, 2013, as being consistent with policies and intentions of the Board of Directors.

2. The Board of Directors hereby adopts the following formula and procedures for periodic

distributions to the active divisions to be effective for the fiscal year ending June 30, 2014, and later fiscal years, and revokes all prior distribution policies:

a. Within one month of receipt of any “NMRA Region Rebate Remittance,” the Treasurer shall distribute such Remittance to the active divisions allocating the distributions on the basis of the number of registered members in such divisions. For this purpose, all registered members shall be counted regardless of their class of membership. The count of the registered members shall be the number of members in each active division as reported on the monthly NMRA Roster Reports closest to or as of the end of the period for which the Remittance is paid. Each division is responsible for assuring that all expenditures that are made from these distributions are for:

i. Promoting NMRA programs pursuant to NMRA and NER policies and guidelines and

ii. Exclusively charitable, educational, literary and scientific purposes under Section 501(c)(3) of the Internal Revenue Code.

b. In addition to the distributions described in a. above, if financial criteria as stated below are met, a portion of the growth in specified assets held by the NER shall also be distributed annually after the close of each fiscal year.

i. The assets that are counted in this formula (the “countable assets”) are liquid assets accounted for by the Treasurer (i.e., not counting the Convention Fund), but not including permanently restricted funds (e.g., the assets in the Spade Award Fund). Director restricted funds (e.g., the Life Member Equity Fund) shall be counted. Asset values shall be determined as of the end of each fiscal year.

ii. The amount to be distributed under this formula is one-half of the amount, if any, by which the countable assets exceed the benchmark financial reserve amount for that fiscal year.

iii. The benchmark financial reserve amount shall be recomputed each year. It shall be equal to the benchmark financial reserve amount of the prior

RESOLUTION FOR NEXT NER BOARD MEETING Prepared by Peter McKenney, Treasurer, August 21, 2014

Discussed with President Youst

2 Attachment 7

year, plus one half of the growth, if any, in countable asset value of the prior year, unless there is no distribution made under this paragraph a for the year. If the countable asset value declined in the prior fiscal year, or if there are no distributions allowed for the past year under this paragraph a, the benchmark financial reserve remains unchanged in the subsequent fiscal year.

iv. The Treasurer is to provide the President with a calculation of the division distribution amounts using this formula within fifteen (15) days after the close of the fiscal year. The President is to review the calculation and upon his or her satisfaction of the calculation, distribute the Treasurer’s calculations to the Directors and Officers within five (5) days of his receipt thereof for their information and review. If no objections are submitted by any of the Directors or Officers to the President within ten (10) days of their receipt of the calculations, the President shall order the Treasurer to prepare checks according to the calculations to be distributed to each of the active divisions. Such checks shall be distributed, at the direction of the President, no later than the next Annual Meeting of the members.

v. At the first meeting of the Board of Directors after the issuance of the Treasurer’s calculations, which may be after the disbursement checks are distributed, the Directors shall formally review and ratify the calculations and distributions. If the Directors vote that an error has been made in the distributions, the Treasurer shall adjust any future payments to the divisions, including the next distribution(s) to the divisions of any NMRA Region Rebate Remittance, until the errors have been remedied.

3. NER divisions that sponsor NER conventions shall:

a. Retain 100% of the net proceeds from i. Any raffle at the convention in which the sponsoring division obtained all

of the raffle prizes and ii. Any other fundraising activity conducted by the sponsoring division.

b. Receive 50% of any net profits that the NER earns at the convention that it sponsored, but not be liable for any portion of any net loss at such convention.

4. The Treasurer shall have authority to make required adjustments in applying the

formula for FYE June 2014 to integrate the new policy into the facts that existed at the end of that fiscal year.

5. The Board of Directors approves the Treasurer’s calculations of the 2014 Dividend

Distribution and authorize the Treasurer to disburse a total of $5,620.81 as allocated to the eleven active NER divisions.

6. The Board of Directors shall periodically review the impact of this distribution policy and retain the right, at its discretion, to revoke, replace, or amend it, based upon financial circumstances and experience gained over time, and/or other relevant factors.

NORTHEASTERN REGION OF THE NMRA

Cash Flow Forecast by Month FYE June 2015July August September October November December January February March April May June Totals

RevenueSubscriptions income 285 550 550 550 550 550 550 550 550 550 765 6,000

NMRA Rebates 1,500 1,500 3,000

Interest income 1 1

Coupler advertising 150 150

Convention Fund Transfer 1,000 1,000

Other 82 82

Total revenue 1 367 2,050 700 550 550 550 550 2,050 550 550 1,765 10,233

Disbursements

AP expenses 100 300 150 250 800

Corp. registration fee 25 25

Communications expense 150 150

Coupler costs 2,672 1,276 1,276 1,276 6,500

Credit card expense 30 30

Internet expenses 50 50

Office expenses 20 20 20 20 20 20 20 20 20 20 200

Distributions to divisions 7,121 1,500 8,621

Total disbursements 2,672 0 7,141 1,421 20 50 1,596 20 1,670 1,446 70 270 16,376

Forecast net cash flow (2,671) 367 (5,091) (721) 530 500 (1,046) 530 380 (896) 480 1,495 (6,143)

Beginning cash balance 10,595 7,923 8,290 3,199 2,478 3,008 3,508 2,462 2,992 3,372 2,476 2,956 10,595

Ending cash balance 7,923 8,290 3,199 2,478 3,008 3,508 2,462 2,992 3,372 2,476 2,956 4,451 4,451

Attachment 8

NER TREASURER'S REPORT

ACTUALS 2013-14 BUDGET ASSUMPTIONS 2013-14 YTD 2013-14

REVENUES 7/12-6/13 7/11-6/12 7/10-6/11 7/09-6/10 7/08-6/09 FIVE YEAR ACTUAL BUDGET

AVERAGE

Subscriptions 6,534.17 5,939.00 6,288.00 5,890.00 7,127.00 6,355.63 850 subscribers @ $7 467.00 5,950.00

Investment Income 6.94 7.97 7.04 7.67 3.25 6.57 Checking Account Interest 0.80 5.00

NMRA Allocations 3,024.00 3,328.00 3,456.00 3,913.00 3,383.00 3,420.80 NMRA Dues Allocations 1,500 @ $2 3,000.00

Transfers to Divisions (1,654.00) - (5,269.00) (1,692.50) (1,723.10) Transfers to Divisions (1,500.00)

Conventions HN 2009 - 6,000.00

Coupler Advertising 150.00 50.00 250.00 75.00 375.00 180.00 Advertising - Coupler 100.00

Total 8,061.11 9,324.97 4,732.04 9,885.67 9,195.75 8,239.91 467.80 13,555.00

EXPENSES

Contributions 412.60 750.00 193.77 Potential memorial gift to NMRA 500.00

Benefits to Members

Coupler 5,053.47 3,980.37 5,277.26 6,220.26 5,443.21 5,194.91 Four issues @ $1,375 5,500.00

Postage/Permit 160.00 32.00

AP Program 413.65 563.73 614.56 152.66 327.38 414.40 500.00

Awards - 35.70 29.92 13.12 Spate award, etc. 50.00

Conventions - 2013-14 Reflects 50% Division Sharing 5,000.00

Equipment -

Contingency 300.00

Office expense 76.53 35.00 124.08 56.83 124.03 83.29 200.00

Meetings 35.00 50.00 17.00 3 meetings, 2 at discount locations 200.00

Advertising/Promotions 108.00 359.99 300.43 120.00 275.00 232.68 Website, etc. 250.00

5,686.65 5,351.69 7,102.03 6,709.75 6,249.54 6,219.93 - 12,500.00

Net Change 2,374.46 3,973.28 (2,369.99) 3,175.92 2,946.21 2,019.98 467.80 1,055.00

Convention Surplus Conventions profits (losses) 1,000.00

# of Subscribers 1,000 1,000 1,000 1,000 996 999 No gains or losses 1,000 1,000

# of NER Life Subscribers 88 88 95 95 98 93 No losses 88 88

Income/Avg. Subscribers 6.14 5.50 5.97 5.45 6.52 5.92 Coupler Income/Subscribers 0.43 5.56

Coupler/ Avg. Subscribers 4.64 3.66 4.82 5.83 4.98 4.76 Production and mailing/Subscribers 0.00 5.06

Beginning Check Book 7,660.55

Transfers From(To) Invmts

Transfers from Conventions

Current Check Book 8,128.35

Invested Funds 07/31/13 Life Member Investment 17,504.61

Cash & MMT 91.38$ 0.20% Spate Award Investment 1,250.33

Domestic Equity Funds 22,396.77$ 48.75% Invested Operating Funds 27,190.59

Int'l Equity Funds 16,512.88$ 35.94% Postage Deposit with Printer 400.00

Fixed Income 6,944.50$ 15.11%

Total 45,945.53$ Total Funds 54,473.88

Cost (36.746735 units) 36,940.33$ REPORT DATE 08/18/13

EFFECTIVE DATE 08/11/13

mv xref 45,945.53

Attachment 9