Monthly Financial Report for June 2006

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Sudane Erato
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Monthly Financial Report for June 2006

Post by Sudane Erato »

It's that time again! Please find the fianancial reports at their usual places... also accessible from the "Services/Finance" page of the website.

Neufreistadt Balance Sheet in Lindens
http://www.tospitimou.com/Neualtenburg/ ... heetLD.pdf

Neufreistadt Balance Sheet in US Dollars
http://www.tospitimou.com/Neualtenburg/BalanceSheet.pdf

Neufreistadt Income/Expense Report in Lindens
http://www.tospitimou.com/Neualtenburg/ ... enseLD.pdf

Neufreistadt Income/Expense Report in US Dollars
http://www.tospitimou.com/Neualtenburg/ ... xpense.pdf


Well, we have certainly had an explosion of activity in Neufreistadt during the month of June, and along with that a huge influx of land revenues. As everyone knows, the land outside the walls is at this moment entirely sold, and even land within the walls is somewhat scarce. This has meant 2 things for the June Income Expense statement:

1) There is a large, one time, burst of "Land Sales Revenue", totalling US$246 (at the 340 exchange rate). This is an unusual spike, since in the future, now, the only land that the City will sell will be that which is abandoned.

2) There is this month a very large amount received for "Land Tier Revenues", US$268. This is actually larger than our theoretical monthly amount should be, because a number of people have prepaid. However, most of this amount is actually sustainable, dependable month-in-and-month-out income.

I must mention here, for those who are somewhat accounting savvy, that the Neufreistadt books are kept on a mostly "cash" basis. This means that money which comes in from folks who wish to prepay their fee is recorded as income for the month it is received. A more sophisticated accounting method, called "accrual basis" accounting, would record that prepaid money as a debt that we owe ourselves, to be paid to ourselves in the month that the citizen intended it for. We could do our accounting that way, and someday I surely hope we will, cause its much more accurate and "true", but its also much more laborious to maintain, and with the existing tools I don't have the energy. (I won't add anything here about my advanced age and decrepit condition :) ).

Expenses were their usual low level, mostly because we are not spending any of the project money which had been earmarked for the season. I suspect that with the new RA, and a new budget, the expenditure side of of this report will get more active.

So, Neufreistadt had a net income of US$268 in the month of June. That's more than an entire month of fee payment to the Lindens!

And, it comes at a good time. Going to the Balance Sheet, you see that we now have $882 of cash, plus what's called Fixed Assets (non cash things we own, like the Rathaus), for a total "Net Worth" of over US$1000. The City of Neufreistadt is now worth over US$1000! That's a long way from the -US$1000 where we started on June 1, 2005... a US$2000 gain in value over 13 months. Quite incredible!

We have $882 in cash ... actually even more now that the lindex "sell rate" has dropped substantially. And we are now looking to the imminent purchase of our second sim. How does this connect?

The sim will cost $1250, unless we're lucky to get a cheaper second hand one. With other costs of start-up, we have tentatively circulated a "new sim budget" of US$2000.

By RA passed Code, the Treasurer must keep two months Linden fee in the bank account. Setting that aside from the $882, that leaves US$500 available for budgeted expenditures. While, of course, we have other money needs, and, in fact, the budget is not even prepared, it is very nice to know that we have $500 to bring to the Colonia Nova project.

A final note here. Last month the financial report was dominated by our concern about the falling value of the Linden against the US dollar. The past week or so has seen a dramatic reversal of this trend. Let's hope that this trend continues. The fewer the number of Linden's needed to buy a US$, the more our Lindens are worth. Which means it takes fewer Lindens to pay the monthly LL fee.

My long delayed startup of a group email to folks interested in the financial issues of our community should happen this week. I expect to include Lee, Pelanor and Ranma in that group. Anyone else willing to help us grapple with some of the knotty financial issues is more than welcome to participate. Just let me know!


Sudane
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