Report of the Treasurer Tim Hagan

Active Donors Your delegate’s binders include a Membership Report for the end of April. This graph is updated to include the number of donors as of Monday, May 23. While correlation does not necessary imply causality, I call this the “Trump-Clinton Effect”. The other two parties put up two doofuses with record unfavorable ratings, and we see a surge in interest and support for the Libertarian Party this year. As of Monday, there were 14,444 active donors, with 706 new donors in April and 1292 new donors so far this month. We have 13,716 sustaining members, that is those who have certified they oppose the initiation of force for social or political goals and have donated at least $25 in the past twelve months.

Audits Audit Committee Members: Aaron Starr, Chair Gary Johnson M Carling Libertarian National Committee 2013 and 2014 financial statements audited by Gelman, Rosenberg & Freedman Auditor’s opinion is the financial statements present fairly the financial position of the Committee as of December 31, 2014 and December 31, 2013. Frye & Company, CPAs engaged to audit the 2015 financial statements. The non-officer members of the Libertarian National Committee appoint the members of the Audit Committee. Serving on the Audit Committee members are Aaron Starr, Gary Johnson from Austin Texas not to be confused with the former governor of New Mexico, and M Carling. Thank these gentlemen for their work on the Audit Committee. The Audit Committee selected Gelman, Rosenberg & Freedman to be the independent auditor for 2014 and 2013 financial statements, which is in your binders. Auditor’s opinion is the financial statements present fairly, in all material respects, the financial position of the Committee as of December 31, 2014 and December 31, 2013. The firm Frye & Company, CPAs was engaged last month to audit the 2015 books, so we do not yet have audited statements for last years. The unaudited 2015 financial statements are in your binder.

Statement of Financial Position Current Assets 2013 2014 2015 Cash and cash equivalents $392,984 $18,855 $71,383 Bequests receivable, current $15,744 $32,400 $0 Prepaid expenses $24,311 $12,345 $15,233 Total Current Assets $433,039 $63,600 $86,616 Two checking accounts, one for unrestricted funds and the other for temporarily restricted funds comprise the cash and cash equivalents. The 2013 cash included $322,434 of restricted funds in the Office Space Acquisition Fund.

Statement of Financial Position Fixed Assets 2013 2014 2015 Land $0 $347,881 Building $477,119 Equipment $3,160 Furniture $16,818 $25,879 Computer equipment and computer software $107,446 $167,448 Building improvements $42,477 $44,697 Capital lease asset $6,827 $15,760 Less: Accumulated depreciation and amortization ($127,716) ($144,326) ($160,352) Net Fixed Assets $6,535 $875,396 $861,590 The land and building for the headquarters facility are the major assets we have. Net fixed assets after depreciation were $875,396 at the end of 2014, and $861,590 at the end of 2015.

Statement of Financial Position Other Assets 2013 2014 2015 Deposits $7,020 $0 Bequest receivable, non-current $192,600 $201,892 Total Other Assets $22,741 In 2014, the LNC was informed that Joseph Shaber named the LNC in his will. He left the party $235,575. The FEC has ruled that an individual’s limit in donations to a national party committee applies whether the donor is alive or dead. The LNC received $33,400 in 2014 and had the remainder placed into a trust so the legal limit can be taken out each year. The trustee informed us of the final amount of the bequest in 2015, which is why the amount changed from 2014 to 2015. While on the subject of bequests; I doubt anyone here wants to leave any of their hard-earned money to the IRS after they pass away. If you leave a traditional IRA or 401(k) account to a person other than your spouse, they have to start taking out minimum distributions the following year or take all of the funds out within five years, no mater how young they are, and pay income tax on it. Instead, if you leave your IRA or 401(k) to a not-for-profit, like the Libertarian Party, that does not pay taxes on donations, then the IRS gets none of your money. All you have to do is change the beneficiary for the account to Libertarian National Committee, 1440 Duke St, Alexandria, VA22314, EIN 52-1170810.

Statement of Financial Position Total Assets 2013 2014 2015 Current Assets $433,039 $63,600 $86,616 Fixed Assets $6,535 $875,396 $861,590 Other Assets $7,020 $192,600 $201,892 Total Assets $446,594 $1,131,596 $1,150,099 Add up these assets, get the totals of $446,594 in 2013, $1,131,596 in 2014, and $1,150,099 in 2015.

Statement of Financial Position Liabilities and Net Assets 2013 2014 2015 Current Liabilities $60,117 $52,698 $80,172 Long-Term Liabilities $0 $498,931 $477,113 Total Liabilities $551,629 $557,284 Unrestricted Net Assets $53,594 $566,370 $585,519 Temporarily Restricted Net Assets $332,883 $13,597 $7,295 Total Net Assets (Equity) $386,477 $579,967 $592,815 Total Liabilities and Net Assets $446,594 $1,131,596 $1,150,099 Current liabilities are the current portion of the mortgage, accounts payable, accrued liabilities, accrued salaries and related benefits. Long-term liabilities are the mortgage (net of the current portion) and capital lease. For 2014, $485,108 mortgage; $13,823 Capital Lease. For 2015, $461,955 mortgage and $15,157 capital lease. Cash and cash equivalents includes temporarily restricted assets, which are earmarked for college campus programs, radio ad project, legal offense project, and in 2013 had $322,434 for Office Space Acquisition. The difference between the Total Assets and the Liabilities is the Net Assets. This is more commonly referred to as Equity for corporations, but since the LNC does not have shareholders to own the equity, the auditors calls it Net Assets. Add the net assets to the total liabilities and get the totals that match the total assets from the previous slide.

Balance Sheet Graph This graph shows the assets, liabilities, and net assets from 2011 to 2015. Of course the increase in assets and liabilities in 2014 is from purchasing the office facility and its mortgage.

Statement of Activities and Change in Net Assets 2013 2014 2015 Contributions and Membership $1,284,445 $1,209,328 $1,114,302 Bequests $5,000 $225,000 $0 Conventions $137,849 Total Other Revenues $1,728 $7,960 $14,024 Total Revenue $1,291,173 $1,580,137 $1,128,326 Total Program Services Expenses $488,203 $643,597 $894,911 Total Supporting Services Expenses $667,848 $743,050 $220,568 Total Expenses $1,156,051 $1,386,647 $1,115,479 Loss on disposal of inventory ($2,000) Change in Net Assets $133,122 $193,490 $12,848 Net Assets at Beginning of Year $253,355 $386,477 $579,967 Net Assets at End of Year $592,815 The Statement of Activities and Change in Net Assets presents the revenues received and expenses paid throughout the year. Our generous members and contributors have given $1,346,887 last year and $1,209,328 in 2014. Of course, convention revenue and expenses are on the even-numbered years. Total of other revenues: interest, promotional material sales, publications (LP News ads). Give total revenues of $1,580,137 for 2014 and $1,128,326 for 2015 Program services: affiliate support, ballot access, brand development, campaign support, campus outreach, litigation support, media relations, member communications, and outreach. Supporting services: conventions, management & general expenses, and fundraising & donor acquisition. Total expenses were $1,386,647 in 2014 and $1,115,479 last year. The difference between revenues and expenses gives the change in net assets. As you can see, assets increased $193,490 in 2014 and $12,848 in 2015. Take the Change in Net Assets to (next slide).

Statement of Cash Flows 2013 2014 2015 Change in net assets $133,122 $193,490 $12,847 Adjustments to reconcile change in net assets to net cash (used) provided by operating activities $66,377 ($186,249) $68,983 Net cash provided by operating activities $199,499 $7,241 $81,831 Net cash used by investing activities $0 ($876,539) $4,513 Net cash used by financing activities ($299) $495,169 ($33,816) Net (decrease) increase in cash and cash equivalents $199,200 ($375,129) $52,528 Cash and cash equivalents at beginning of year $193,784 $392,984 $18,855 Cash and Cash Equivalents at End of Year $71,383 Adjustments are the non-cash assets and include current expected bequests, prepaid expenses, accrued payroll & vacation expenses. Add these adjustments to get the net cash provided by operating activities. The LNC also had financing activities of accumulated depreciation and non-current expected bequests. Adding the financing activities to the net cash gives a decrease in cash of in 2014. Adding these to the cash at the beginning of the year to get the cash at the end of the year. These match the cash and cash equivalents on the Statement of Financial Position.

Revenue and Expenses Summary This graph shows the revenue in blue, expenses in red, and surplus in green for 2011 to 2015. Of course the increase in two-year cycle is primarily from conventions and elections being on the even-numbered years.

That’s All, Folks!