Monthly Financial Report for January 2007 & Proposed Bud

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Sudane Erato
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Monthly Financial Report for January 2007 & Proposed Bud

Post by Sudane Erato »

Better late than never. At last, I've found the time to assemble the January financial report, as well as a "starting point" draft budget for the CDS. I'll start with the report.

As usual, the reports are found here:

Neufreistadt Balance Sheet in Lindens ... heetLD.pdf

Neufreistadt Balance Sheet in US Dollars

Neufreistadt Income/Expense Report in Lindens ... enseLD.pdf

Neufreistadt Income/Expense Report in US Dollars ... xpense.pdf

and the US dollar reports can also be accessed here:

Also, as usual, I'll discuss these reports in their US dollar form. Taking the "Income and Expense Report" first. For revenues, two things stand out. (1) The "tier" revenues for both sims are a bit light. Even though NFS is almost fully occupied, its revenues were insufficient to cover the monthly LL fee. CN was a bit worse, but thats to be expected, since CN is not fully sold.

Why? A variety of factors are here, probably. Some people have previously paid their fees in advance, so there was no income this month from them. Others, a hefty number this time, did not get around to paying their fees until after the first of February. Only a threatening IM from Rudeen caused people to take notice and get their fees paid. In both cases, there is not a concern with a problem of the underlying revenue base, only that people's paying habits end up causing erratice flucuation in this number.

The other stand-out: (2). Fully US$160 was brought into the coffers through sale of land over and above what the land cost us. This means that now both NFS *AND* CN have been paid for by land purchases, and further money that comes in from the sale of land on either sim is now revenue income. This is very healthy news... CN was bought only a few months ago, and already it is paid for.

On the expenses side, the usual and predicted items are there. We have certainly been very conservative, perhaps excessively so, regarding discretionary spending. This results in a net "profit" for the month of US$109... a very good figure.

Going next to the Balance Sheet (the report of everything we "own" minus everything we "owe"), that US$109 increases the "Total Equity", way down at the bottom of the page, by $109 over last month. "Equity" is "value". The CDS at this moment is time has, conservatively presented, an intrinsic "value" of US$1564. I think that very few months have occurred where that number did not rise. Fundamentally, CDS is on a very good course.

Well, where is this "value"? This shows higher up on the page. We "own" basically cash (US$4782) and some miscellaneous investments (US$335). At this time, conservatively speaking, we have no "value" expressed here for our land, since the cost of that land has been entirely reimbursed by the purchases of citizens. It might be possible some day to express the value of our land another way, here in the Balance Sheet, but that will wait til more sophisticated accounting systems.

And we "owe" two things. The cash loans which we solicited so that we could purchase CN, US$3408. And the long term funds deposited in escrow with us by the various chartered companies, US$145. The Total Assets: US$5118, minus the Total Liabilities: US$3553, equals the Total Equity: US$1564.

All in all, a financially healthy but uneventful month in the CDS.

Here's the budget draft, which I have presented to the RA for development and adoption. I'm sure the members of the RA will appreciate any and all comments and suggestions which can be proposed regarding a final version. ... ly2007.pdf



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