Finance Commission

Finance Committee

This Finance Committee report was published in the 2017-2018 Department of California Book of Reports.

Al Lennox, Chairman
Fiscal Year 2017-2018

The responsibility of the Finance Commission is to; generally, care for the finances of the Department of California, then upon review prepare and report to the Department Executive Committee a comprehensive financial report, and finally prepare a report and new budget to the annual convention of the Department of California. Throughout the year the commission reviews financial statements, both prepared by an independent CPA and those statements prepared by our internal controller. We systematically review each fiscal quarter of the financial year for budgetary control and compliance with the budget prepared and approved by the annual convention. The commission performs internal audits for accuracy and by-law compliance.

Finally, the Personnel Committee makes recommendations to the Finance Commission regarding personnel positions required for operation and staff salary and benefit recommendations. Those recommendations, when approved by the Finance Commission are then submitted to the annual convention incorporated in the new budget for the following fiscal year. This past year indicates the following trends; the department’s annual budget has been carefully crafted and is accurate, business costs continue to rise, and ways and means revenue continues to decline. These trends require attention. Prudent spending is a must in keeping containment of business costs. In regards to ways and means fundraising, revenue streams must continue to be evaluated with cost benefit analysis and revenue stream production. It is important to note that the continued decline of membership will have a significant negative impact on the general fund and continued decline of ways and means revenues will have significant negative impact on the VA&R Division fund. Cost controls; membership recruitment, and ways and means revenues will all require aggressive immediate attention, now and in the future.

In summary, fiscal oversight and review is ongoing and prudent, and the budgetary process continues to remain accurate. Cost controls and revenue improvement must be aggressively addressed. I am pleased to report that the Department of California is within its budget and has been for several years. The VA&R Division is staffed and performing at a high level of assistance to California’s Veterans, and our financial reserves are still intact and available. My best to all members of the Commission for your expertise and hard work throughout the year. You should be proud of your accomplishments during very austere times. A personal thanks to all.