Conduct a financial analysis of a rural local Chamber of Commerce Economic Development organization in a relatively prosperous Mississippi county. You have been hired as the director at $$90$k per year and you will have an assistant director earning $$37$k and an office administrator earning $$19,350.$ Annual dues are based on company size. A number of the growing companies have asked for increased benefits from the Chamber. You have a number of strategic efforts based on talking to major companies in the county that you would like to launch including a workforce attraction and preparedness program. What are your conclusions and recommendations based on the following financial statement for

an EDO? What questions would you ask about the finances?

$201820192020202120222023$

Revenues

City Contribution $$75,000$ $$75,000$ $$75,000$ $$75,000$ $$70,000$ $$70,000$

County Contribution $$114,000$ $$108,300$ $$102,885$ $$97,741$ $$92,854$ $$88,211$

Annual membership dues $$75,000$ $$78,750$ $$82,688$ $$86,822$ $$91,163$ $$95,721$

Total Revenues $$264,000$ $$262,050$ $$260,573$ $$259,563$ $$254,017$ $$253,932$

Administration

Total Salaries $$146,350$ $$146,350$ $$146,350$ $$146,350$ $$146,350$ $$146,350$

Insurance $($Health$,$ Liability &

Causality$)$ $$18,000$ $$18,000$ $$23,400$ $$23,400$ $$23,400$ $$23,400$

Payroll Taxes $$14,000$ $$14,000$ $$14,000$ $$14,000$ $$14,000$ $$14,000$

Retirement $$13,800$ $$13,800$ $$13,800$ $$13,800$ $$13,800$ $$13,800$

Total Administration $$192,150$ $$192,150$ $$197,550$ $$197,550$ $$197,550$ $$197,550$

Expenses

Association Membership &

Conference Registration $$5,000$ $$5,000$ $$5,000$ $$5,000$ $$5,000$ $$5,000$

Accounting $$3,000$ $$3,150$ $$3,308$ $$3,473$ $$3,647$ $$3,829$

Advertising $$2,000$ $$2,000$ $$2,000$ $$2,000$ $$2,000$ $$2,000$

Auto Allowance $$5,000$ $$5,000$ $$5,000$ $$5,000$ $$5,000$ $$5,000$

Bank Service $$500$ $$500$ $$750$ $$750$ $$750$ $$750$

Board of Directors Expenses $$500$ $$500$ $$500$ $$500$ $$500$ $$500$

Janitorial $$3,700$ $$3,700$ $$3,700$ $$4,000$ $$4,000$ $$4,000$

Building Maintenance $$2,500$ $$3,000$ $$3,000$ $$3,000$ $$3,000$ $$3,500$

Office Equipment Rental $$7,000$ $$7,000$ $$7,000$ $$7,000$ $$7,000$ $$7,000$

Office Supplies & postage $$500$ $$525$ $$551$ $$579$ $$608$ $$638$

Website $$20,000$ $$2,000$ $$2,000$ $$2,000$ $$2,000$ $$2,000$

Meal & Entertainment $$2,400$ $$2,640$ $$2,904$ $$3,194$ $$3,514$ $$3,865$

Subscriptions $$1,500$ $$1,500$ $$1,500$ $$1,500$ $$1,500$ $$1,500$

Kitchen and Other Supplies $$1,500$ $$1,500$ $$1,750$ $$1,750$ $$1,750$ $$1,750$

Telephone $$5,400$ $$5,670$ $$5,954$ $$6,251$ $$6,564$ $$6,892$

Utilities $$6,500$ $$6,825$ $$7,166$ $$7,525$ $$7,901$ $$8,001$

Total Expenses $$67,000$ $$50,510$ $$52,083$ $$53,522$ $$54,734$ $$56,520$

Annual Profit $$4,850$ $$19,930$ $$10,940$ $$8,491$ $$1,733$ $$157$

$1.$What are your conclusions and recommendations based on the following financial statement for an EDO?

$2.$What questions would you ask about the finances?