Dollar$ & sen$e & PSA - Photographic Society of America 1990-91 audit report

The audit report accompanying this article is the fourth report to be published since the Society's Headquarters was moved to Oklahoma City. Each report since that fateful day has presented an increasingly favorable picture of the Society's financial condition. One of the reasons for this improvement is the emphasis management has placed on those principles that are needed to achieve financial stability. Another is the cooperation given by all of the volunteers who serve the Society, those on Committees and in the Chapters and Divisions. Yet another is the earnestness with which the Headquarters staff have shouldered increasing responsibilities. This is not to say the Society is "out of the woods." No government and no organization ever outgrows the need for constant vigilance in all of its decisions.

Financial decisions are only one kind of decision that must be made if this Society is to have a productive future. Advance planning must go hand in hand with financial decisions. A long-range planning committee has been established to set some priorities for future Society undertakings. Within budgetary limitations, this committee will endeavor to give spending priority to those projects that represent gains for all members.

In previous articles we have called attention to the formal details of the annual financial statements. These statements summarize some 500 separate accounts that, together, provide the financial information on which operating decisions must be based. These accounts are only a small part of the material the auditors examine. They study every phase of our operations at Headquarters and throughout the Society. They review our adherence to Federal and State laws, to regulations established by the Board of Directors and the Executive Committee, and to generally accepted accounting principles (GAAP). They notify us of any areas in which we fall short, and they look for prompt corrective action. Their professional expertise is invaluable.

One thing the auditors can't do is to eliminate the myths that arise among us from time to time. For example, one myth has it that the Society does not pay income taxes because it is "exempt." The fact is that the exempt status granted to the Society covers only those activities that are directly related to our stated purposes. Income derived from advertising carried in the PSA Journal is not exempt, and is taxable to the extent it exceeds certain allowed deductions. The taxes the Society pays on unrelated business taxable income (UBTI) are not now a critical factor, but they must be taken into account in our planning for the future.

Another myth has to do with insurance. There are more than a few members who continue to think that their Society membership includes individual insurance coverage. The fact is that, although the Society carries a number of kinds of insurance, it does not carry any insurance to cover members except in connection with Society liability at certain of our major scheduled events. There are many advantages in belonging to PSA, but an individual insurance policy in not included in membership.

Yet another myth has it that the Society's national officers are paid to serve in that capacity. Nothing could be farther from the truth, and nothing would be a more serious violation of the Society's Constitution. Article VI of that document states that "No elective officer of this Society shall receive cash remuneration for serving in office." As with all elected and appointed officers, the national officers may be reimbursed for their necessary expenses of office up to budgetary limitations, but that is the extent of it. The national officers share with many of our volunteers the attitude that their service is an investment of both time and money. And I might add that no expenditures are more carefully scrutinized by the auditors than are payments made to officers of the Society.

The 1990-91 audit report and financial statements are something in which every volunteer should take pride. They are the combined result of the decisions you made throughout the year. Continuing the same care and vigilance into the future will help the Society to fulfill its stated purposes well and faithfully.

COPYRIGHT 1992 Photographic Society of America, Inc.
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