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Treasurer's Report February 2000, with 1999 Distribution of Earnings



Title:

February Valuation Statement

Stock holdings are worth $57,941.64.  Total cash on hand is $3,353.17.  Ameritrade currently shows our cash balance as $40.97, but I've sent them a $3,200 check from the Presidential account, which should clear in the next few days.  Valuation units are worth $22.273.

Over Christmas, I received most of our Ameritrade statements from 1999, and since then I've spent some time entering transactions that I'd missed earlier last year.  I think everything is properly accounted for now.  As a result of these changes, the valuation units and prices for last year have changed slightly.  See the corrected valuation unit ledger.

1999 Distribution of Earnings

After making the above changes, I closed the books on 1999, and ran the Distribution of Earnings.  The tax forms aren't done yet, but the calculations are all here.  Expect the forms by the next meeting.

Speaking of tax forms, the Ameritrade change of address must have gone through, because Greg has received our 1099 form.  According to Ameritrade, we received in 1999:

Dividends:    $101.25
Interest:      $19.52

The NAIC Club Accounting Distribution of Earnings gave some different numbers:

Dividends:    $311.88
Interest:       22.25
ST Cap. Gains:   6.18
LT Cap. Gains:  55.93
Misc.:        -518.84
Profit:       -122.60

Ameritrade's accounting differs from ours, and I think Ameritrade's is wrong.  For example, in a 3 for 2 stock splits, we receive cash in lieu of the half-share of stock.  Ameritrade records this cash as dividend income, which is wrong.  The NAIC software correctly records some of the cash as return of capital, and some as a capital gain.  (The exact amount depends on how much the stock has appreciated since we bought it.)

These errors tend to inflate Ameritrade's estimation of our dividend income.  However, this tendency has been overwhelmed this year by a single transaction: the Vodafone/ATI merger.  In the merger, we traded our ATI shares for VOD shares, plus $243 cash.  We recorded the cash portion as a dividend, but Ameritrade didn't.  In the end, the money has to be accounted for in some category, so I don't think these differences matter much.  When I produce the Form 1065/Schedule K's, I'll use the numbers from the NAIC software, and not Ameritrade's.

One more item deserves explanation.  After expenses, the club actually lost $122.60 last year.  Since we have an operating loss, the "Distribution of Earning" is actually a distribution of losses.  Everybody ends up losing a fraction of a valuation unit.