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TABLE OF CONTENTS 1) Agenda 2) WRA 2015 November Board Meeting Minutes 3) WLA 2015 November Board Meeting Minutes 4) FINANCIALS WLA Q4 Board Report December 2015 WLA Q4 Strategic Income Statement WLA Q4 Balance Sheet WPC December 2015 Income Statement WPC December 2015 Balance Sheet WRA Q1 Financial Board Report WRA Q1 Strategic Income Statement WRA Q1 Balance Sheet Audit Executive Summary WRA 2015 Audited Financials 5) MEMBERSHIP WRA/WLA Membership Report 6) WRA Resolution Number 2

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Page 1: TABLE OF CONTENTS - wahospitality.orgwahospitality.org/wp-content/uploads/2015/03/Board... · TABLE OF CONTENTS 1) Agenda 2) WRA 2015 November Board Meeting Minutes 3) WLA 2015 November

TABLE OF CONTENTS

1) Agenda

2) WRA 2015 November Board Meeting Minutes

3) WLA 2015 November Board Meeting Minutes

4) FINANCIALS

WLA Q4 Board Report December 2015 WLA Q4 Strategic Income Statement WLA Q4 Balance Sheet WPC December 2015 Income Statement WPC December 2015 Balance Sheet

WRA Q1 Financial Board Report WRA Q1 Strategic Income Statement WRA Q1 Balance Sheet Audit Executive Summary WRA 2015 Audited Financials

5) MEMBERSHIP

WRA/WLA Membership Report

6) WRA Resolution Number 2

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Agenda 2016 Spring Board of Directors’ Meetings

Washington State Convention Center ~ Seattle, WA

Sunday, March 20th 10:00 am – 5:00 pm Northwest Foodservice Show 1:00 pm – 5:00 pm MSC Board Meeting

Monday, March 21st

10:00 am - 4:00 pm Northwest Foodservice Show 11:30 am – 1:00 pm Board Hosted Luncheon – Featuring Robert Irvine 1:30 pm – 5:00 pm Joint Board Meeting 6:30 pm – 9:00 pm Cocktail Reception & Dinner at Tango

Tuesday, March 22nd

7:30 am – 8:00 am Breakfast 8:00 am – 8:30 am Executive Session 8:30 am – 11:30 am Joint Board Meeting 11:30 am – 12:00 pm Lunch 12:00 pm – 2:00 pm Joint Board Meeting

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AGENDA SPRING BOARD MEETING

Monday, March 21, 2016 11:30 AM – 5:00 PM

The Washington State Convention Center

ROOM – 4C-1

800 Convention Pl. Seattle, WA

11:30 AM Board Hosted Luncheon featuring Robert Irvine

1:30 PM Call to Order ........................................................................ Phil Costello/ Frank Welton 1:30 PM Communications Test ....................................................................... Lex Nepomunceno 2:00 PM Big Topic 1 – New Business Model 2016................................................. Anthony Anton All forces of political change are forcing a new business model for 2016, what role should the WRA/ WLA play in the new model? (Breakout Groups) ....................................................................................

3:00 – 3:15 PM – Break

3:15 PM Big Topic 2 – Restrictive Scheduling ............................................................. John Lane This is coming, what would you like us to do on this issue? Should we invest in the issue like we did with minimum wage in Seattle? 4:00 PM Big Topic 3 – Minimum Wage ................................................................... Bruce Beckett

• Legislative Update

• Initiative Update

• Decision Points for the remainder of 2016

• Investment Research on Impact

- ADJOURNMENT-

6:30 PM Cocktail Reception & Dinner (Hosted by Clark Nuber) at Tango Restaurant & Lounge

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AGENDA SPRING BOARD MEETING

Tuesday, March 22, 2016 8:00 AM – 2:00 PM

The Washington State Convention Center

ROOM – 4C-1

800 Convention Pl. Seattle, WA

8:00 AM Call to Order & Executive Session....................................... Phil Costello/ Frank Welton 8:30 AM Review and Approval of Previous Board Meeting Minutes ......................... Mark Chriest Review and Approval of Previous Board Meeting Minutes ....................... Eric Campbell 8:35 AM WLA Quarterly Financial Report ............................................................... Eric Campbell WRA Quarterly Financial Report ................................................................ Mark Chriest 8:50 AM BIG TOPIC 4 – NWFSS ............................................................................ Teran Petrina

9:45 – 10:00 AM – BREAK

10:00 AM BIG TOPIC 5 – Business Development’s New Direction .............................. Ken Wells 10:45 AM BIG TOPIC 6 - B.H.A.G ........................................................................ Anthony Anton (Breakout Groups) ................................................................................

11:30 – 12:15 PM – LUNCH

12:15 PM Breakout Groups Report ............................................................................................... 12:45 PM New Name/ Rebranding Presentation ............... Marianne Scholl & Lex Nepomunceno

1:30 PM Old and New Business ...................................................... Open to Floor for Discussion 1:45 PM Motion for Approval of all Board Reports ............................. Phil Costello/ Frank Welton 2:00 PM Motion for Resolution........................................................... Phil Costello/ Frank Welton

- ADJOURNMENT-

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WRA Board of Directors Meeting Minutes Tuesday, November 17, 2015

Daniel’s Broiler Bellevue, Cascade Room

WRA Directors in Attendance: Carla Barajas, Shannon Boldizsar, Karissa Bresheare, Mark Chriest,

Erik Christiansen, Phil Costello, Jacque Farrell, Reggie Frederick, Pete Hanning, Taylor Hoang, Lane

Hoss, Amy Igloi Creed, Randy Irvine, Jeff Iverson, Matt McCarthy, Victor Mena, Brian Moreno, John

Nguyen, Travis Rosenthal, Jim Rowe, Craig Schafer, Bret Stewart, Angela Stowell, and Dan Sutton

WRA Directors Absent: Chad Mackay and Bill Trudnowski

Staff/ Guests in Attendance: Anthony Anton, Bruce Beckett, Rebekah Cardwell, Marian Ericks, Julia

Gorton, Lyle Hildahl, John Lane, Zach Lindahl, Lex Nepomuceno, Marianne Scholl, Teran Petrina, Katie

Sokolik and Ken Wells; Stan Bowman, WLA; Daniels-Brown Communications; Tom Mesaros, The

Alford Group; Tom Pierson, Pierce County Chamber; and Clinton Wolf, United HealthCare

Call to Order at 11:03 a.m...................................................................................................... Phil Costello

Introductions and Ice Breaker ................................................................................................ Phil Costello

Review and Approval of the Previous Meeting Minutes .................................................... Mark Chriest

Mark Chriest presented the minutes from the July 27th meeting as written. Jim Rowe motioned to accept

the minutes as written and Reggie Frederick seconded. The motion passed with none opposed.

2015 WLA Convention ......................................................................................................... Stan Bowman Stan provided an update on the successes of the 2015 WLA Convention. This has been the highest

profiting convention to date. He requested feedback from the WLA Board members. The only two

comments were: better auction items and more generalized workshops that were not so brand specific.

Presentation of a “Special Thanks” to Tom Pierson of the Tacoma-Pierce County Chamber by

Bruce Beckett and Reggie Frederick.

Presentation by our Lunch Sponsor - Clinton Wolf of United Health Care.

WRA Quarterly Financials ................................................................................................... Mark Chriest Mark Chriest presented the 1st Quarter Financials and Balance Sheet. He highlighted the increased in the

Government Affairs and Business Development Expenses and fielded questions about the Northwest

Food Service Show.

Motion by Reggie Frederick to approve the WRA Financials as presented. Pete Hanning seconded.

Motion passed with none opposed.

2015 - 2016 WRA Strategic Budget Review ......................................................................... Mark Chriest

Mark Chriest presented the 2015- 2016 WRA Strategic Budget. He highlighted any numbers that were

significantly different than the 2014-2015. Discussion was held about duplicated WLA & WRA

members, retention, projected new sales, increased employee numbers, increased IT/Info costs and SHA

revenue.

Motion by Reggie Frederick to approve the 2015-2016 WRA Strategic Budget as presented. Pete

Hanning seconded. Motion passed with none opposed.

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Minutes of November 17, 2015 Board of Directors Meeting

Page 2 of 2

Rebranding Presentation and Brainstorm by Daniels-Brown Communications

Presentation by the Government Affairs ............................................................. Bruce Beckett & Team

Bruce Beckett explained the role of the Government Affairs department, who they are and what they do.

John Lane gave a 2015 election update. Julia Gorton explained the plan for the 2016 Legislative Session.

Bruce Beckett gave an overview of the WRA’s new position on minimum wage.

Old/ New Business .................................................................................................................... Phil Costello

Motion by Pete Hanning to have the WRA Board to make a recommendation to the National

Restaurant Association Board to form a taskforce to study and present rebranding ideas for the

NRA, so it may no longer be confused with the National Rifle Association. Travis Rosenthal

seconded. Discussion held about the history of this issue. Motion passed. Shannon Boldizsar

abstained.

Motion to approve all board reports by Dan Sutton. Jim Rowe seconded. The motion passed with

none opposed.

Motion to approve the resolution by Pete Hanning. Reggie Frederick seconded. The motion passed

with none opposed.

Minutes submitted by Katie Sokolik

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WLA Board of Directors Meeting Minutes Tuesday, November 17, 2015

Daniel’s Broiler Bellevue, Cascade Room

WRA Directors in Attendance: Zahoor Ahmed, Bill Baldwin, Tim Bathke, CHA, Warren Beach, Eric

Campbell Roy Cupler, CPA, Caroline Curtis, CHA, Jim Davis, Tom Keogh, CHA, CHT, Janice

Mosbrucker; Ron Oh, CHA, Vijay Patel, Lars Pedersen, Doug Rigoni, Michael Schabbing, Scott Snofsky,

Jaymes Toycen; Chris Tudor, CHA; Matt Van Der Peet; Tom Waithe, CHA, Debbie Wardrop; Frank

Welton, Meghan Wiley and Tom Wolf

WRA Directors Absent: Mark Lukens, Larry MacDonald, Mike McLeod, Pat McShane, Alkesh Patel,

Bakulesh (Buggsi) Patel and Freyda Stephens, CHA

Staff/ Guests in Attendance: Anthony Anton, Bruce Beckett, Rebekah Cardwell, Marian Ericks, Julia

Gorton, Lyle Hildahl, John Lane, Zach Lindahl, Lex Nepomuceno, Marianne Scholl, Teran Petrina, Katie

Sokolik and Ken Wells; Stan Bowman, WLA; Daniels-Brown Communications; Tom Mesaros, The

Alford Group; Tom Pierson, Pierce County Chamber; and Clinton Wolf, United HealthCare

Call to Order at 11:03 a.m........................................................................................... Matt Van Der Peet

Introductions and Ice Breaker ..................................................................................... Matt Van Der Peet

Review and Approval of the Previous Meeting Minutes ........................................... Matt Van Der Peet Matt Van Der Peet presented the minutes from the August 13th meeting as written. Vijay Patel motioned

to accept the minutes as written and Zahoor Ahmed seconded. The motion passed with none

opposed.

2015 WLA Convention ......................................................................................................... Stan Bowman

Stan provided an update on the successes of the 2015 WLA Convention. This has been the highest

profiting convention to date. He requested feedback from the WLA Board members. The only two

comments were: better auction items and more generalized workshops that were not so brand specific.

Presentation of a “Special Thanks” to Tom Pierson of the Tacoma-Pierce County Chamber by

Bruce Beckett and Reggie Frederick.

Presentation by our Lunch Sponsor - Clinton Wolf of United Health Care.

WLA Quarterly Financials ................................................................................................. Eric Campbell

Eric Campbell presented the 1st Quarter Financials and Balance Sheet. Discussion was held about the

“Rainy Day” fund. The fund will be discussed in more detail at the next Finance Committee meeting.

Motion by Warren Beach to approve the WLA Financials as presented. Jim Davis seconded.

Motion passed with none opposed.

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Minutes of November 17, 2015 Board of Directors Meeting

Page 2 of 2

2016 WLA Budget Review ................................................................................................... Teran Petrina Teran Petrina presented the WLA 2016 Budget. Discussion held about dual numbers, retention, the dues

structure change, the 12% increase in PAC and an explanation of the management fee.

Motion by Scott Snofsky to approve the 2016 WLA Budget as presented. Tim Bathke seconded.

Motion passed with none opposed.

Rebranding Presentation and Brainstorm by Daniels-Brown Communications

Presentation by the Government Affairs ............................................................. Bruce Beckett & Team

Bruce Beckett explained the role of the Government Affairs department, who they are and what they do.

John Lane gave a 2015 election update. Julia Gorton explained the plan for the 2016 Legislative Session.

Bruce Beckett gave an overview of the WRA’s new position on minimum wage.

Motion by Tom Wolf to support an increase in minimum wage if done the right way. Ron Oh

seconded. Motion passed with none opposed.

Motion to approve all board reports by Scott Snofsky. Roh Oh seconded. The motion passed with

none opposed.

Minutes submitted by Katie Sokolik

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Washington Lodging Association

Financial Highlights – Year-to-Date through December 31, 2015

General

The implementation of the Joint Operating Agreement (JOA) with Washington Restaurant Association (WRA) impacted

numerous categories of expense (primarily), causing variances with budgets that were not originally anticipated in the

budget. Given the transition between financial systems (from WLA Quickbooks outsourced system to WRA Sage 100

system) which occurred at October 1, 2015, the actual-to-budget variances are being presented on a full-year basis only.

Variances exceeding $5,000 per P&L category are addressed in the following “Notes to Financials”.

Notes to Financials (Actual to Budget comparisons)

Income

Allied/Marketing Income – Gain $9,736

• Featured sponsorship with Heartland produced $7,400.

Events Income – Gain $27,667

• WLA Convention Income experienced a gain of $55,462

• Fundraising event not scheduled ($19,000)

• No Golf Tourney held in 2015 ($9,395)

Expenses

Administration Expenses – Saved ($6,601)

• Salaries/Wages saved ($160,589) due to transition to JOA with WRA

• Contract Labor cost surplus of $26,499 due to Consulting agreement with Stan Bowman

• Severance Expense cost surplus of $116,707 due to contract with prior CEO

• Legal Fees cost surplus of $20,761 due to expenses related to JOA negotiation and implementation

• Accounting Fees saved ($5,270) due to transition of financial functions to WRA under JOA

Board Expense – Cost surplus of $13,737

• Primarily due to Alford Group expenses of $11,981 related to strategic planning sessions for JOA implementation

Miscellaneous

MSC Management Fee – Cost surplus of $131,385

• Un-budgeted line item related to JOA with WRA

Washington Lodging Association Political Action Committee

• Income of $2,550 due to implementation of ‘opt-out’ PAC assessments of 12.5%

• End of year cash position is $6,038

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WLA Financials

INCOME STATEMENT

For the Period Ending 2015-12-31

Prior Year

Activity Budget QTD Activity Budget

Income:

Dues

Membership Dues - Lodging (61,142) 69,005 (130,147) 16,095 413,669 415,000 (1,331) 394,623 415,000

Membership Dues - Allied 938 1,213 (276) 750 60,757 59,000 1,757 52,575 59,000

AHLA Dues 913 0 913 0 1,093 0 1,093 0 0

Total Dues (59,291) 70,218 (129,509) 16,845 475,519 474,000 1,519 447,198 474,000

Allied/Marketing

Other Income 1,119 0 1,119 26 1,175 0 1,175 26 0

Membership Program Rebates - HIHIT 3,100 1,500 1,600 765 4,400 6,000 (1,600) 6,944 6,000

Featured Sponsorships 6,000 999 5,001 1,800 11,400 4,000 7,400 4,000 4,000

VG Revenue 0 0 0 6,310 53,761 51,000 2,761 47,267 51,000

SagaCity Cost Reimbursement 0 0 0 (6,310) 25,000 25,000 0 25,000 25,000

Total Allied/Marketing 10,219 2,499 7,720 2,591 95,736 86,000 9,736 83,236 86,000

Events

WLA Convention 95,067 23,849 71,218 55,879 186,462 131,000 55,462 134,464 131,000

Fundraising Event 0 19,000 (19,000) 25,345 0 19,000 (19,000) 25,345 19,000

Golf-Poker Tournament 0 2,327 (2,327) 1,135 3,405 12,800 (9,395) 7,490 12,800

Educational Programs 0 0 0 0 600 0 600 0 0

Total Events 95,067 45,176 49,891 82,359 190,467 162,800 27,667 167,299 162,800

Other Income

Coalition Contribution 0 0 0 6,667 3,333 0 3,333 33,333 0

Interest 107 624 (517) 674 2,119 2,500 (381) 2,696 2,500

Law Card Sales 0 0 0 0 0 0 0 0 0

Bankcard program 0 1,749 (1,749) 3,000 4,000 7,000 (3,000) 7,000 7,000

Miscellaneous Income 592 0 592 0 592 0 592 2,633 0

Rental Income 0 2,520 (2,520) 3,138 10,082 10,080 2 12,560 10,080

Total Other Income 698 4,893 (4,195) 13,479 20,126 19,580 546 58,222 19,580

RETRO

Retro Program Income 163,471 129,903 33,568 105,752 220,405 221,600 (1,195) 205,123 221,600

Total RETRO Income 163,471 129,903 33,568 105,752 220,405 221,600 (1,195) 205,123 221,600

Total Revenue 210,164 252,689 (42,525) 221,026 1,002,253 963,980 38,273 961,078 963,980

Annual BudgetQTD Over (Under)

Budget

YTD Over (Under)

BudgetPrior YTD

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WLA Financials

INCOME STATEMENT

For the Period Ending 2015-12-31

Prior Year

Activity Budget QTD Activity BudgetAnnual Budget

QTD Over (Under)

Budget

YTD Over (Under)

BudgetPrior YTD

Expenses:

Fixed Expenses

B&O Taxes 2,420 1,500 920 0 2,420 1,500 920 0 1,500

Taxes - Local 55 63 (8) 108 225 250 (25) 216 250

Taxes - State (2,296) 174 (2,470) 442 59 700 (641) 1,999 700

Total Fixed Expenses 179 1,737 (1,558) 550 2,705 2,450 255 2,215 2,450

Administration

Salaries/Wages Expense 13,350 37,305 (23,955) 93,431 175,829 336,418 (160,589) 339,283 336,418

Payroll Taxes 1,214 7,353 (6,139) 5,804 24,424 29,400 (4,976) 23,887 29,400

Employee Benefits 2,071 5,100 (3,029) 9,594 41,988 46,000 (4,012) 32,734 46,000

Contract Labor 27,000 27,000 0 0 116,499 90,000 26,499 0 90,000

Severance Expense 0 0 0 0 116,707 0 116,707 0 0

Postage/Phone/Utilities 1,276 2,502 (1,226) 2,248 7,637 10,000 (2,363) 9,416 10,000

Rent 2,864 6,375 (3,511) 8,032 28,656 25,500 3,156 32,126 25,500

Rental & License Fees 7,740 4,503 3,237 2,611 21,103 18,000 3,103 17,417 18,000

Printing 900 174 726 49 1,292 700 592 748 700

Bank Fees 2,237 123 2,114 0 2,330 500 1,830 (59) 500

Credit Card Discounts 59 1,626 (1,567) 2,506 4,351 6,500 (2,149) 6,586 6,500

Legal Fees 0 0 0 0 44,261 23,500 20,761 1,868 23,500

Accounting Fees 3,843 17,001 (13,158) 18,487 62,730 68,000 (5,270) 55,566 68,000

Insurance - Liability, Theft 0 0 0 0 3,617 1,700 1,917 1,661 1,700

Licenses 0 0 0 0 120 100 20 100 100

Meals 386 0 386 0 386 0 386 0 0

Staff Development 0 1,002 (1,002) 912 2,803 4,000 (1,197) 4,601 4,000

Dues & Subscriptions 268 0 268 0 268 0 268 0 0

Fundraising Expense 0 2,000 (2,000) 2,733 0 3,200 (3,200) 2,733 3,200

Office Supplies 425 1,098 (673) 834 2,204 4,400 (2,196) 3,818 4,400

Project Management 1,430 24 1,406 0 1,809 100 1,709 8 100

Staff Expenses 57 1,002 (945) 738 2,566 4,000 (1,434) 3,317 4,000

Website 100 876 (776) 300 9,837 6,000 3,837 4,483 6,000

Depreciation/Amortization 0 0 0 1,438 0 0 0 4,399 0

Total Administration 65,221 115,064 (49,843) 148,279 671,417 678,018 (6,601) 544,692 678,018

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WLA Financials

INCOME STATEMENT

For the Period Ending 2015-12-31

Prior Year

Activity Budget QTD Activity BudgetAnnual Budget

QTD Over (Under)

Budget

YTD Over (Under)

BudgetPrior YTD

Board Expense

Board Development 395 10,814 (10,419) 4,563 41,737 28,000 13,737 29,444 28,000

D&O Insurance 394 0 394 0 2,319 1,500 819 1,399 1,500

Volunteer Awards & Recognition 709 920 (211) 1,598 1,726 2,000 (274) 1,744 2,000

Total Board Expense 1,498 11,734 (10,236) 6,160 45,782 31,500 14,282 32,586 31,500

Events

Convention 74,745 63,081 11,664 67,759 111,606 109,000 2,606 99,859 109,000

Educational Program Expenses 0 0 0 0 620 0 620 0 0

Golf-Poker Tournament Expenses 0 3,500 (3,500) 530 0 3,500 (3,500) 530 3,500

Total Events Expense 74,745 66,581 8,164 68,289 112,227 112,500 (273) 100,389 112,500

Government Affairs

Legislative Counsel 0 6,759 (6,759) 30,255 65,003 67,117 (2,114) 114,052 67,117

Issue Updates & Alerts (11) 475 (486) 20 60 1,100 (1,040) 846 1,100

Legislative Reception 0 2,000 (2,000) 0 1,045 2,000 (955) 0 2,000

Local Association/Grassroots 2,500 20,462 (17,962) 748 42,304 38,633 3,671 11,237 38,633

Total GA Expense 2,489 29,696 (27,207) 31,023 108,413 108,850 (437) 126,136 108,850

Membership

Allied Member Expense 0 2,001 (2,001) 348 7,867 8,000 (133) 7,107 8,000

AH&LA Dues 19,400 9,500 9,900 18,587 38,882 38,000 882 37,173 38,000

Membership Campaign 218 474 (256) 743 16,867 18,913 (2,046) 7,282 18,913

Total Membership Expense 19,618 11,975 7,643 19,678 63,616 64,913 (1,297) 51,562 64,913

RETRO

Retro Program Expense 6,051 26,478 (20,427) 9,972 41,294 39,087 2,207 19,773 39,087

Total RETRO Expense 6,051 26,478 (20,427) 9,972 41,294 39,087 2,207 19,773 39,087

MSC Management Fee 131,835 0 131,835 0 131,835 0 131,835 0 0

Bank/Finance Charges 0 0 0 0 0 0 0 0 0

Total MSC Management Fee 131,835 0 131,835 0 131,835 0 131,835 0 0

Total Expense 301,636 263,265 38,371 283,952 1,177,288 1,037,318 139,970 877,352 1,037,318

Surplus/(Loss) WLA (91,472) (10,576) (80,896) (62,926) (175,035) (73,338) (101,697) 83,726 (73,338)

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WLA

BALANCE SHEET

For the Twelve Months Ending 2015-12-31

YTD YTD

ASSETS 2015 2014

CURRENT ASSETS

Cash - Operating 328,009 389,442

Heritage Bank CD 183,835 181,852

Bank of America CD xx34 86,886 86,857

Total Cash 598,731 658,151

Accounts Receivable 87,365 105,752

Cash - RETRO Checking 2,892,341 906,656

WA Trust Bank MM 0623 352,304 351,881

WA Trust Bank CD xx33 875,873 1,092,254

Credit Card Pending 3,305 1,435

Total Accounts Receivable 4,211,188 2,457,978

Prepaid Expenses 0 16,696

Fixed Assets 35,630 35,630

Accumulated Depreciation (35,630) (35,630)

Deposits Held 2,221 2,221

Website Development 18,825 18,825

Accumulated Amortization (18,825) (18,825)

Total Other Assets 2,221 18,917

Total Current Assets 4,812,139 3,135,046

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YTD YTD

LIABILITIES 2015 2014

CURRENT LIABILITIES

Accounts Payable 287 643

Accrued Expenses 10,227 40,057

Accrued Severance Expense 57,380 0

AH&LA Dues 2015 Payable 1,674 137

Deferred Revenue 337,022 291,052

PAC Assessment 1,822 0

Total Current Liabilities 408,411 331,890

RETRO PY 2011 0 33,702

RETRO PY 2012 1,013,603 1,300,938

RETRO PY 2013 1,068,613 1,016,151

RETRO PY 2014 2,044,182 0

4,126,398 2,350,791

FUND BALANCE

Retained Earnings 452,365 368,639

Retained Earnings - Current Year (175,035) 83,726

Fund Balance, Current Month 277,330 452,365

Total Liabilities & Fund Balance 4,812,139 3,135,046

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Period to

Date

Year to

Date

Revenue4020-000-00 Political Assessment Income 1,730.39$ 2,684.61$

Total Revenue: 1,730.39$ 2,684.61$

Expenses6500-000-00 Office Expense & Printing 0.00$ 134.73$

Total Expenses: 0.00$ 134.73$

Other Income and Expense4220-000-00 Interest Income 0.04$ 0.50$

Total Other Income and 0.04$ 0.50$

Net Income (Loss): 1,730.43$ 2,550.38$

Income StatementFor The 12 Periods Ended 12/31/2015

Washington Lodging PAC (WPC)

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Income StatementFor The 12 Periods Ended 12/31/2015

Washington Lodging PAC (WPC)

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Assets

Current Assets 2015 2014

1010-000-00 Cash in Bank - Regular 5,128.66$ 2,578.78$

1030-000-00 Wa Trust - Market Fund 0573 909.47$ 909.01$

Total Current Assets: 6,038.13$ 3,487.79$

Equity

3200-000-00 Retained Earnings 3,487.75$ 84,815.51$

3200-000-00 Retained Earnings-Current Year 2,550.38$ (81,327.72)$

Total Equity: 6,038.13$ 3,487.79$

Balance Sheet

As of 12/31/2015

Washington Lodging PAC

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Balance Sheet

As of 12/31/2015

Washington Lodging PAC

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FINANCIAL REPORT

FIRST QUARTER 2016

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REVENUE

WRA FIRST QUARTER 2016

DUES PERFORMANCE

__________________________________________________________________________________________

• At the end of the first quarter, total regular dues resulted in a gain of $18,998 ($395,484 actual, $376,486 budget).

o Q1 retention ended at 93% with a goal of 92%. o New sales for Q1 were down by <$5,139> primarily due to having an open territory

with a $6,600 quarterly budget goal, as well as one new AC.

• Allied dues resulted in a loss of <$4,716> ($26,161 actual, $30,877 budget) for Q1. o During Q1, both ARM positions were in training. o The Allied retention goal is 85%, 74.5% was achieved. o During the month of December, the ARMs were focused on the NWFSS booth sales.

__________________________________________________________________________________________

REIMBURSEMENTS, OTHER PROGRAMS, & OTHER INCOME PERFORMANCE

__________________________________________________________________________________________

• Commissions/Endorsed Sponsor has a timing shortfall of <$3,266> due to a change in our endorsed partner for credit card processing, i.e. NWFSS sponsorship commitment.

• HIHIT reimbursement has a timing shortfall of <$10,000> for Q1 due to late payment.

• HIHIT Marketing Reimbursement had a revenue shortfall of <$4,800>. This is due to a change in administrator of the Trust and we plan to recover in Q2.

• Trade Show Income experienced a revenue timing gain of $8,223 relative to the Heartland sponsorship payment received by WRA not yet remitted to NWFSS.

• Advertising/Sponsorship had a revenue shortfall of <$10,878> for Q1 due to the lack of new ad sales; focus has been on training the new ARM positions and NWFS booth sales.

• Leg Reception Revenue experienced a revenue gain of $2,500 due to additional sponsorship

dollars secured.

• Allied Relations/Strategic Partnerships had a revenue gain of $5,000 due to late sponsor payments. The balance of the gain, $795, is due to timing.

• King County Local Government Fees had a revenue shortfall of <$2,727> due to late member payment.

• Spokane Local Government Fees has a timing shortfall of <$650>. These funds are expected to level out next quarter.

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_________________________________________________________________________________________________

TOTAL REVENUE

The first quarter ended with $635,747 in total revenue with a budget of $632,147 resulting in a Q1 gain of $3,600. Timing revenue total <$12,425>.

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EXPENSES

WRA FIRST QUARTER 2016

FIXED OPERATING EXPENSES __________________________________________________________________________________________________

• Fixed Operating Expenses ended the quarter with a cost savings of <$695> ($41,126 actual, $41,821 budget).

• Income Taxes had a Q1 cost surplus of $3,000 due to an overpayment. We will correct this with next quarter’s payment.

• Insurance – Other experienced a timing savings of $921 due to a late arriving invoice.

• Property Taxes had a true cost savings in Q1 of <$1,402> due to lower than expected property taxes.

• Repair/Maintenance Building experienced a timing cost savings of <$575>, we anticipate this to be spent in Q2.

• Utilities – Building experienced a timing savings of <$563> do to a late invoice. _________________________________________________________________________________________________________________________

BOARD/LEADERSHIP EXPENSES _________________________________________________________________________________________________

• Board/Committee Meetings experienced a timing savings of <$1,810> in Q1 due to a late invoice from the November board meeting. This should level out in Q2.

• Leadership Salaries/Payroll Taxes experienced a true savings of <$1,184>.

• Leadership Training experienced a cost surplus of $1,980 due to the Western States CEO retreat in Las Vegas. The California Restaurant Association will be reimbursing the WRA for the expense.

• Officers Travel/Meals/Lodging experienced a cost surplus of $2,096 due to higher than planned expenses for officer travel and a timing issue of director’s travel to the NRA meeting in September.

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EXPENSES

WRA FIRST QUARTER 2016

GOVERNMENT AFFAIRS __________________________________________________________________________________________________

• Government Affairs Expenses ended Q1 with a savings of <$151> ($211,022 actual, $211,172 budget).

• Government Affairs Benefits experienced a savings in Q1 of <$1,453> due to staffing changes

that occurred after the budgeting process.

• GA Staff Expenses experienced a cost surplus in Q1 of $4,432 due to regional meeting staff travel costs.

• Contract Lobbyist experienced a Q1 timing savings of <$1,236>; we will spend these dollars in Q2.

• Coalition/Dues/Sponsorships experienced a savings of <$3,205>; <$2,900> is due to a timing issue with an invoice.

• Hill Climb/Leg. Reception has a Q1 timing surplus of $1,336. We expect final expenses to land within budget.

• Local Government – Benefits experienced a true savings of <$1,937>.

• Staff Expenses Local Government had a Q1 surplus of $1,449 due to the relocation of a staff member to Spokane.

• Coalition/Dues/Sponsorships – Local Gov experienced a Q1 timing savings of <$1,705> due

late payments on planned memberships to AWC and CASE.

• Issues Fund Expenditures – Local Gov had a Q1 surplus of $1,249 due to payments for the minimum wage issues.

________________________________________________________________________________________________________________________

MEMBERSHIP & AC’S __________________________________________________________________________________________________

• Membership experienced a savings of <$4,052> ($98,470 actual, $102,522 budget) in Q1.

• Membership Dir/AC’s – Salaries/Stipends/Taxes/Benefits experienced savings of <$2,329> for Q1. Snohomish AC position budgeted start date was October 1, 2015 and was not hired until January 4th, 2016. Central Southeast remains open at this time.

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EXPENSES

WRA FIRST QUARTER 2016

Membership & AC’s - cont’d

• Sales Productions had a Q1 true savings of <$1,461> due a returned payment from a job fair

and a reimbursement from FYE 2015.

_________________________________________________________________________________________

BUSINESS DEVELOPMENT __________________________________________________________________________________________________

• Business Development had a cost savings of <$3,983> at the end of Q1 ($13,187 actual, $17,170 budget).

• The Biz.Develop/ Staff - Salaries/Taxes had a cost savings of <$2,852> in Q1 relative to shortfall in sales efforts.

• HIHIT Marketing Expense has a Q1 timing cost savings of <$931> related to delayed billings for social media efforts.

________________________________________________________________________________________________________________________

COMMUNICATIONS __________________________________________________________________________________________________

• Communications experienced a cost surplus in Q1 of $5,014 from planned expenses ($113,772 actual, $108,758 budget).

• Comm-Salaries/Payroll Taxes had a cost surplus of $4,657 for Q1, due to the utilization of a temporary staff member.

• Comm – Benefits had true savings of <$1,346> relative to employee changes in selection.

• Comm Staff Training experienced a timing cost savings of <$531>. These funds are expected to be utilized later in the fiscal year.

• Industry Communications –Member Info experienced a timing cost surplus of $1,777 due to radio airtime annual cost paid early.

• HERO Manual Materials had a cost surplus of $769 due to the restocking of needed supplies.

• Consulting – Marketing experienced a timing cost surplus of $2,775. We plan to recover this surplus in Q2.

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EXPENSES

WRA FIRST QUARTER 2016

Communications - cont’d ______________________________________________________________________________________________

• Subscriptions/Mkt Communications experienced a timing cost surplus of $1,186 due to an early payment of an invoice.

• Database Development/Maintenance had a timing cost savings of <$777>. We plan to utilize these funds by the end of the FY.

• Staff Training – Database experienced a timing savings of <$750>. Training has been postponed to later in the year.

• Software Maintenance/License Fees has a timing savings of <$3,097> due to two separate service agreements budgeted to date that have not been purchased.

EXPENSES

WRA FIRST QUARTER 2016

INTERNAL OPERATIONS __________________________________________________________________________________________________

• Admin/Operating Expenses experienced a cost surplus $806 for Q1 ($74,226 actual, $73,421 budget).

• Admin. Salaries and Payroll taxes experienced a cost surplus of $597 for Q1 due to temporary labor assistance needed in the department.

• Admin Benefits experienced a timing cost surplus of $627 due to a HIHIT credit that has not yet been received.

• Bank Charges & Discounts experienced a true savings of <$660>.

• Dues – Affiliated Organizations experienced a surplus of $4,074 due to the CSRA membership that was missed during the budget process.

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EXPENSES

WRA FIRST QUARTER 2016

Internal Operations - cont’d

______________________________________________________________________________________________

• Holidays Expense experienced a true savings of <$1,302> due to savings decreased costs for our holiday party in December.

• Postage experienced a Q1 true savings of <$690>.

• Printing & Stationary experienced a timing savings of <$1,015>. We expect to utilize this budget by the end of the fiscal year.

• Repair & Maintenance – Auto had a Q1 cost surplus of $736 due to a need for tires on one of

the company vehicles.

__________________________________________________________________________________________________

TOTAL EXPENSES __________________________________________________________________________________________________

• First Quarter Total Expenses ended at <$2,186> under planned expenditures ($607,394 actual, $609,581 budget). Timing expense totals <$6,037>.

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__________________________________________________________________________________________________

NET PROFIT __________________________________________________________________________________________________

• Profit/Loss before Depreciation for Q1 resulted in a gain of $28,352 with a budget of $22,566 resulting in a positive variance of $5,786. Once removing the revenue and expense timing issues, Profit before Depreciation is $34,740 resulting in a gain of $24,443.

• First Quarter’s net gain is $9,768 with a budget of $2,882 resulting in a gain of $6,885.

• Balance Sheet overview:

Assets – Cash has decreased by <$23,409> from Q1 last year.

Furniture/fixtures increased by $11,831, Automobiles increased by $10,485.

Liabilities – Total Current Liabilities decreased by <$138>.

Long-term liabilities/Building Loan decreased by <$48,388>.

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Washington Restaurant Association

INCOME STATEMENT

For the Quarter Ending 2015-12-31

Prior Year

Activity Budget Quarter 1 Activity Budget

Revenue

Regular Dues 369,373 345,609 23,764 326,397 369,373 345,609 23,764 326,397 1,463,253

Allied Dues 26,161 30,877 (4,716) 25,749 26,161 30,877 (4,716) 25,749 149,396

Less Dues Discounts and Allowances (50) 0 (50) 0 (50) 0 (50) 0 0

Total Dues 395,484 376,486 18,998 352,146 395,484 376,486 18,998 352,146 1,612,649

Ed Foundation Reimbursement/Lease 2,256 2,031 225 2,537 2,256 2,031 225 2,537 8,125

PAC Reimbursement 5,062 5,065 (3) 7,436 5,062 5,065 (3) 7,436 20,245

Total Reimbursements 7,318 7,096 222 9,973 7,318 7,096 222 9,973 28,370

Dividend Income - MSC 62,500 62,500 0 56,250 62,500 62,500 0 56,250 250,000

MSC Reimbursement/Lease 0 0 0 5,402 0 0 0 5,402 0

Retro Reimbursement/Sponsorship Fee 25,000 24,999 1 25,000 25,000 24,999 1 25,000 100,000

Total Retro 87,500 87,499 1 86,652 87,500 87,499 1 86,652 350,000

Commissions/Endorsed Sponsor 21,152 24,418 (3,266) 24,388 21,152 24,418 (3,266) 24,388 104,172

HIHIT Reimbursement 0 10,000 (10,000) 6,035 0 10,000 (10,000) 6,035 45,000

HIHIT Marketing Reimbursement 7,469 12,269 (4,800) 1,621 7,469 12,269 (4,800) 1,621 55,469

Trade Show Income 23,223 15,000 8,223 15,170 23,223 15,000 8,223 15,170 102,000

Total Other Programs 51,844 61,687 (9,843) 47,214 51,844 61,687 (9,843) 47,214 306,641

Advertising/Sponsorship 16,497 27,375 (10,878) 25,391 16,497 27,375 (10,878) 25,391 118,500

Board Meeting Sponsor 0 0 0 1,500 0 0 0 1,500 4,500

HERO Manual Sponsor 0 0 0 0 0 0 0 0 3,000

Leg Reception Revenue 12,000 9,500 2,500 5,250 12,000 9,500 2,500 5,250 16,000

Allied Relations/Strategic Partnerships 5,795 0 5,795 825 5,795 0 5,795 825 15,000

Total Allied & Marketing 34,292 36,875 (2,583) 32,966 34,292 36,875 (2,583) 32,966 157,000

Interest Income 130 213 (83) 194 130 213 (83) 194 850

King County Local Government Fees 16,650 19,377 (2,727) 15,750 16,650 19,377 (2,727) 15,750 76,075

King County Local Government Issue Fund 10,000 10,000 (0) 10,000 10,000 10,000 (0) 10,000 40,000

Spokane County Local Government Fees 3,350 4,000 (650) 0 3,350 4,000 (650) 0 16,000

MW Public Opinion Research 0 0 0 40,000 0 0 0 40,000 0

Miscellaneous Income/Holiday 10,585 10,320 265 432 10,585 10,320 265 432 11,540

Rental Income 18,594 18,594 0 18,594 18,594 18,594 0 18,594 74,376

Total Other Income 59,308 62,504 (3,196) 84,970 59,308 62,504 (3,196) 84,970 218,841

Total Revenue 635,747 632,147 3,600 613,921 635,747 632,147 3,600 613,921 2,673,501

Annual BudgetQuarter 1 Over (Under)

Budget

YTD Over (Under)

BudgetPrior YTD

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Washington Restaurant Association

INCOME STATEMENT

For the Quarter Ending 2015-12-31

Prior Year

Activity Budget Quarter 1 Activity BudgetAnnual Budget

Quarter 1 Over (Under)

Budget

YTD Over (Under)

BudgetPrior YTD

Expenses

Fixed Operating Costs

B & O Taxes 2,906 2,978 (72) 3,236 2,906 2,978 (72) 3,236 11,911

Income Taxes 16,500 13,500 3,000 11,029 16,500 13,500 3,000 11,029 54,000

Insurance - Building 518 777 (259) 1,026 518 777 (259) 1,026 6,458

Insurance - Other 869 1,790 (921) 2,185 869 1,790 (921) 2,185 15,460

Interest Expense 6,025 5,928 97 4,856 6,025 5,928 97 4,856 22,982

Property Taxes 8,582 9,984 (1,402) 10,040 8,582 9,984 (1,402) 10,040 19,968

Repair/Maintenance - Building 2,339 2,914 (575) 2,004 2,339 2,914 (575) 2,004 9,520

Utilities - Building 3,387 3,950 (563) 4,358 3,387 3,950 (563) 4,358 16,800

Total Fixed Operating Expenses 41,126 41,821 (695) 38,733 41,126 41,821 (695) 38,733 157,099

Board/Leadership Expenses

Awards: Past Chairs 0 0 0 0 0 0 0 0 3,600

Board/Committee Meetings 539 2,349 (1,810) 3,229 539 2,349 (1,810) 3,229 13,143

Board Strategic Planning 0 200 (200) 0 0 200 (200) 0 2,100

Leadership Salaries/Payroll Taxes 39,747 40,931 (1,184) 33,978 39,747 40,931 (1,184) 33,978 164,777

Leadership Benefits 7,737 7,759 (21) 7,590 7,737 7,759 (21) 7,590 31,718

Leadership Staff Expenses 1,886 1,931 (44) 583 1,886 1,931 (44) 583 7,722

Leadership Cell Phone 186 128 58 106 186 128 58 106 512

Leadership Training 2,499 519 1,980 997 2,499 519 1,980 997 2,261

CEO Strategic Project 0 0 0 0 0 0 0 0 0

WLA Merger Expenses 0 0 0 315 0 0 0 315 0

Member Surveys 0 0 0 96 0 0 0 96 8,495

Officers Travel/Meals/Lodging 2,996 900 2,096 696 2,996 900 2,096 696 9,000

Total Board Expenses 55,591 54,716 875 47,592 55,591 54,716 875 47,592 243,329

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Washington Restaurant Association

INCOME STATEMENT

For the Quarter Ending 2015-12-31

Prior Year

Activity Budget Quarter 1 Activity BudgetAnnual Budget

Quarter 1 Over (Under)

Budget

YTD Over (Under)

BudgetPrior YTD

Government Affairs

GA - Salaries/Payroll Taxes 77,249 77,733 (484) 72,282 77,249 77,733 (484) 72,282 280,548

GA - Benefits 8,012 9,465 (1,453) 9,953 8,012 9,465 (1,453) 9,953 38,005

Staff Expenses 8,582 4,150 4,432 1,874 8,582 4,150 4,432 1,874 23,000

Cell Phone 176 195 (19) 207 176 195 (19) 207 780

Staff Training 1,421 900 521 0 1,421 900 521 0 900

Coalition/Dues/Sponsorships 5,832 9,037 (3,205) 451 5,832 9,037 (3,205) 451 22,248

Contract Lobbyist 9,471 10,707 (1,236) 23,496 9,471 10,707 (1,236) 23,496 36,753

Grassroots Incentive 3,640 3,283 357 1,203 3,640 3,283 357 1,203 39,289

Hill Climb/Leg. Reception 2,281 945 1,336 4,499 2,281 945 1,336 4,499 4,320

Industry Communications - GA 82 0 82 0 82 0 82 0 4,320

Issue & Research Fund 0 0 0 2,354 0 0 0 2,354 0

MW Issue Fund 0 0 0 50,775 0 0 0 50,775 0

Lobbying Expenses 589 507 82 1,695 589 507 82 1,695 2,025

Meetings/Teleconferences 1,611 985 626 1,875 1,611 985 626 1,875 1,269

Public Affairs Conference 0 0 0 0 0 0 0 0 4,950

Contingency Fund Expense 0 0 0 (50,775) 0 0 0 (50,775) 0

Local Government

Local Government - Salaries/Payroll Taxes 80,423 80,365 58 47,516 80,423 80,365 58 47,516 330,805

Local Government - Benefits 5,444 7,381 (1,937) 3,287 5,444 7,381 (1,937) 3,287 37,978

Staff Expenses - Local Gov 3,699 2,250 1,449 1,906 3,699 2,250 1,449 1,906 9,000

Staff Training - Local Gov 0 225 (225) 1,005 0 225 (225) 1,005 900

Cell Phone - Local Gov 186 0 186 0 186 0 186 0 0

Coalition/Dues/Sponsorships - Local Gov 607 2,312 (1,705) 0 607 2,312 (1,705) 0 6,508

Conferences - Local Gov 0 0 0 345 0 0 0 345 2,500

Awards 0 0 0 0 0 0 0 0 400

Industry Communications - Local Govt 72 108 (36) 72 72 108 (36) 72 432

Contract Lobbyist Expenses - Local Gov 80 0 80 0 80 0 80 0 0

Issues Fund Expenditures - Local Gov 1,249 0 1,249 1,500 1,249 0 1,249 1,500 0

Meetings/Teleconferences - Local Gov 230 375 (145) 805 230 375 (145) 805 1,500

Office Rent - Local Gov 85 250 (165) 214 85 250 (165) 214 1,000

Total Gov. Affairs Expenses 211,022 211,172 (151) 176,540 211,022 211,172 (151) 176,540 849,430

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Washington Restaurant Association

INCOME STATEMENT

For the Quarter Ending 2015-12-31

Prior Year

Activity Budget Quarter 1 Activity BudgetAnnual Budget

Quarter 1 Over (Under)

Budget

YTD Over (Under)

BudgetPrior YTD

Membership

Memb Dir/AC's - Salaries/Stipends/Taxes 89,108 90,359 (1,251) 68,051 89,108 90,359 (1,251) 68,051 387,071

Memb Dir/AC's - Benefits 8,429 9,507 (1,078) 7,342 8,429 9,507 (1,078) 7,342 44,148

AC's Retention/Sales Commission 0 300 (300) 317 0 300 (300) 317 1,200

Staff Expenses 1,028 674 354 78 1,028 674 354 78 4,228

Cell Phone 85 0 85 0 85 0 85 0 0

Staff Training 700 1,091 (391) 5,618 700 1,091 (391) 5,618 4,267

AC Open Terrritory Comm/Exp/Promotions 213 0 213 365 213 0 213 365 0

Meetings/Teleconf. 169 316 (147) 219 169 316 (147) 219 2,310

Membership Postage 24 100 (76) 0 24 100 (76) 0 397

Sales Productions (1,286) 175 (1,461) 488 (1,286) 175 (1,461) 488 613

Total Membership Dir/AC's 98,470 102,522 (4,052) 82,478 98,470 102,522 (4,052) 82,478 444,234

Business Development

Bus. Develop/Retro Staff - Salaries/Taxes 12,768 15,620 (2,852) 13,350 12,768 15,620 (2,852) 13,350 64,434

Staff Expenses 0 50 (50) 0 0 50 (50) 0 200

HIHIT Promotion Expense 0 0 0 1,824 0 0 0 1,824 0

Marketing Programs 0 150 (150) 0 0 150 (150) 0 600

HIHIT Marketing Expense 419 1,350 (931) 0 419 1,350 (931) 0 17,300

BD Promotions 0 0 0 914 0 0 0 914 0

Total Business Dev 13,187 17,170 (3,983) 16,088 13,187 17,170 (3,983) 16,088 82,534

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Washington Restaurant Association

INCOME STATEMENT

For the Quarter Ending 2015-12-31

Prior Year

Activity Budget Quarter 1 Activity BudgetAnnual Budget

Quarter 1 Over (Under)

Budget

YTD Over (Under)

BudgetPrior YTD

Communications

Comm - Salaries/Payroll Taxes 77,002 72,345 4,657 62,556 77,002 72,345 4,657 62,556 315,617

Comm - Benefits 8,525 9,870 (1,346) 6,367 8,525 9,870 (1,346) 6,367 44,176

Staff Expenses 1,234 1,350 (116) 466 1,234 1,350 (116) 466 5,340

Cell Phone 222 225 (3) 198 222 225 (3) 198 900

Staff Training 159 690 (531) 72 159 690 (531) 72 3,960

Primary Source of Information Expenses

Consultant Network Exp 19 300 (281) 0 19 300 (281) 0 1,200

HERO Manual Materials 1,669 900 769 879 1,669 900 769 879 3,500

Industry Communications - Memb Info 3,477 1,700 1,777 3,114 3,477 1,700 1,777 3,114 7,400

Demographics 3,000 3,000 0 0 3,000 3,000 0 0 3,000

Communication Support Expenses

WLA Merger Expenses - Comm 0 0 0 0 0 0 0 0 6,500

Consulting - Marketing 7,719 4,944 2,775 69 7,719 4,944 2,775 69 13,750

News Magazine & Postage 4,772 4,266 506 8,806 4,772 4,266 506 8,806 21,200

Restaurant Lists 0 0 0 0 0 0 0 0 3,900

Subscriptions/Mktg Communications 2,486 1,300 1,186 1,228 2,486 1,300 1,186 1,228 6,550

Web Site 950 950 0 2,016 950 950 0 2,016 4,036

Database/IT

Database Development/Maintenance 448 1,225 (777) 1,645 448 1,225 (777) 1,645 4,375

Database Labor 562 315 247 611 562 315 247 611 1,225

Staff Training - Database 0 750 (750) 1,047 0 750 (750) 1,047 3,000

Software Maintenance/License Fees 1,531 4,628 (3,097) 947 1,531 4,628 (3,097) 947 19,058

Total Communications 113,772 108,758 5,014 90,021 113,772 108,758 5,014 90,021 468,687

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Washington Restaurant Association

INCOME STATEMENT

For the Quarter Ending 2015-12-31

Prior Year

Activity Budget Quarter 1 Activity BudgetAnnual Budget

Quarter 1 Over (Under)

Budget

YTD Over (Under)

BudgetPrior YTD

Admin/Operating Expenses

Admin - Salaries/Payroll Taxes 36,179 35,582 597 37,845 36,179 35,582 597 37,845 140,356

Admin - Benefits 7,742 7,115 627 6,141 7,742 7,115 627 6,141 28,811

Staff Expenses 143 295 (152) 36 143 295 (152) 36 1,175

Cell Phone 123 197 (74) 123 123 197 (74) 123 790

Staff Training 884 884 (0) 315 884 884 (0) 315 7,665

Audit/Tax Prep/Acctg Consulting 5,588 5,938 (350) 4,422 5,588 5,938 (350) 4,422 13,356

Bank Charges & Discounts 4,215 4,875 (660) 4,215 4,215 4,875 (660) 4,215 19,500

Legal 4,125 4,125 0 5,250 4,125 4,125 0 5,250 16,500

Legal Fees - Additional 0 413 (413) 0 0 413 (413) 0 1,650

Operations

Advertising - New Staff Recruiting 96 55 41 151 96 55 41 151 249

Donations & Flowers 54 103 (49) 77 54 103 (49) 77 413

Dues - Affiliated Organizations 4,322 248 4,074 3,253 4,322 248 4,074 3,253 990

Holidays Expense 2,949 4,252 (1,302) 2,701 2,949 4,252 (1,302) 2,701 7,739

Internet Service 297 322 (25) 388 297 322 (25) 388 1,287

Office Supplies & Equip. Lease 2,167 2,585 (418) 2,559 2,167 2,585 (418) 2,559 8,929

Postage 760 1,450 (690) 944 760 1,450 (690) 944 5,800

Printing & Stationary 110 1,125 (1,015) 400 110 1,125 (1,015) 400 5,500

Repair/Maintenance - Auto 1,236 500 736 46 1,236 500 736 46 2,625

Repair/Maintenance - Office 2,249 2,270 (21) 2,812 2,249 2,270 (21) 2,812 9,075

Subscriptions & License Fees 0 192 (192) 0 0 192 (192) 0 1,280

Telephone - Office 986 896 90 1,482 986 896 90 1,482 3,584

Total Admin/Ops Expenses 74,226 73,421 806 73,158 74,226 73,421 806 73,158 277,274

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Washington Restaurant Association

INCOME STATEMENT

For the Quarter Ending 2015-12-31

Prior Year

Activity Budget Quarter 1 Activity BudgetAnnual Budget

Quarter 1 Over (Under)

Budget

YTD Over (Under)

BudgetPrior YTD

Total Expenses 607,394 609,581 (2,186) 524,610 607,394 609,581 (2,186) 524,610 2,522,587

Profit/(Loss) Before Depreciation 28,352 22,566 5,786 89,311 28,352 22,566 5,786 89,311 150,914

Depreciation 18,409 18,409 0 21,567 18,409 18,409 0 21,567 80,536

Contingency Spec Proj Fund Exp 0 0 0 (50,775) 0 0 0 (50,775) 0

Profit/(Loss) from Operations 9,943 4,157 5,786 118,520 9,943 4,157 5,786 118,520 70,378

Net Profit/(Loss) Seattle Chapter 625 0 625 504 625 0 625 504 0

Net Profit/(Loss) Spokane Chapter (801) (1,275) 474 5,069 (801) (1,275) 474 5,069 (5,470)

Net Profit/(Loss) 9,768 2,882 6,885 124,093 9,768 2,882 6,885 124,093 64,908

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Washington Restaurant Association

BALANCE SHEET

For the Three Months Ending 2015-12-31

YTD YTD FYE FYE

ASSETS 2016 2015 2014 2013

CURRENT ASSETS

Cash - Contingency Funds 50,010 50,055 50,042 46,963

Cash - Operating Funds - Ckg 18,535 104,978 30,806 98,214

Cash - Operating Reserves - Mmkt/CDARS 374,995 317,196 345,078 350,514

Cash - Special Proj Funds - Mmkt/CDARS 181,842 181,623 184,555 213,637

Cash - Spokane Checking WA Trust 10,246 5,186 1,207 100

Petty Cash 150 150 150 150

Total Cash 635,778 659,187 611,838 709,578

Accounts Receivable * 0 (21,480) (0) (0)

Accounts Receivable - Membership Promotion 0 0 0 250

Due From Ed Foundation (0) (0) (0) 1,553

Due from MSC 0 (0) (0) 929

Due from WRA PAC 0 (0) (0) 46

NWFSS Prepaid Expense 0 0 0 2,946

Prepaid Expenses 0 0 (0) 2,937

Prepaid Insurance 0 0 (0) 1,445

Prepaid Medical (0) (0) (0) 3,683

Salary Advance - Employee 1,110 (0) (0) 143

Total Accounts Receivable 1,110 (21,480) 0 13,931

Total Current Assets 636,889 637,707 611,838 723,509

FIXED ASSETS

Furniture & Fixtures 704,088 692,257 688,270 661,046

Acc. Depr. - Furn. & Fixtures (587,531) (561,586) (551,386) (479,345)

Automobiles 73,532 63,047 97,576 68,453

Accumulated Depreciation - Automobile (28,775) (18,099) (49,961) (40,015)

Land - Office Building 403,000 403,000 403,000 403,000

Office Building 1,057,434 1,057,434 1,057,434 1,057,434

Accumulated Depreciation - Building (299,462) (276,448) (267,748) (279,066)

Total Fixed Assets 1,322,286 1,359,605 1,377,184 1,391,507

OTHER ASSETS

Investment in WRAMSC Stock 1,000 1,000 1,000 1,000

Investment in NWFSS 10,000 10,000 10,000 10,000

Total Other Assets 11,000 11,000 11,000 11,000

Total Assets 1,970,175 2,008,312 2,000,022 2,126,016

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BALANCE SHEET

For the Three Months Ending 2015-12-31

YTD YTD FYE FYE

LIABILITIES & FUND BALANCE 2016 2015 2014 2013

LIABILITIES

401K Withholdings 0 0 0 420

Accounts Payable (0) 0 0 28,382

Deferred Revenue 0 0 0 258

Federal Income Taxes Payable 0 0 0 26,318

Payroll Taxes Payable 583 461 476 2,823

Sales Taxes Payable 0 0 0 155

Security Deposit Payable 6,198 6,198 6,198 6,198

Supplemental Insurance Withheld 205 463 515 905

Total Current Liabilities 6,984 7,122 7,190 65,460

LONG-TERM LIABILITIES

Payable to US Bank - Building 604,151 652,539 666,000 661,433

Total Long-term Liabilities 604,151 652,539 666,000 661,433

FUND BALANCE

Fund Balance 1,349,271 1,326,833 1,399,123 1,238,212

Surplus/(Deficit) Current Month 9,768 21,818 (72,290) 160,911

Fund Balance, Current Month 1,359,039 1,348,651 1,326,833 1,399,123

Total Liabilities & Fund Balance 1,970,175 2,008,312 2,000,022 2,126,016

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March 17, 2016

Dear Board Member,

In January 2016, Michael Gintz of Brantley Jansen Yost & Ellison presented the Independent

Auditor’s Report and Consolidated Financial Statements for the Washington Restaurant

Association and Affiliates to the Joint Finance Committee.

He shared the opinion which was “the consolidated financial statements referred to above present

fairly, in all material respects, the financial position of Washington Restaurant Association and

Affiliates as of September 30, 2015 and the changes in their net assets and their cash flows for the

year then ended in accordance with the modified cash basis of accounting.”

A few key areas were highlighted such as the increase in assets and the lack of significant activity

in liabilities. Dues and other revenue are up from 2014 and the impact PAC has on the income

statement from odd to even years was explained.

The Finance Committee vetted the report in detail with Michael and ultimately approved the

2015 audit with subsequent disclosure of contracts with the Washington Lodging Association.

This audit will not be reviewed in any detail at the Board meeting, but you will have an

opportunity to ask our Treasurer or staff questions.

Thank you.

Sincerely,

Teran Petrina Kylie Kincaid

VP/COO Director of IO

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WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

INDEPENDENT AUDITOR’S REPORTAND

CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 AND 2014

BRANTLEY JANSON YOST & ELLISONCertified Public Accountants

A Professional Service Corporation1617 South 325

th Street

Federal Way, Washington 98003-6009

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INDEPENDENT AUDITOR’S REPORT

To the Board of DirectorsWashington Restaurant Association and AffiliatesOlympia, Washington

We have audited the accompanying consolidated financial statements Washington Restaurant Association and Affiliates, which comprise the consolidated statement of assets, liabilities and net assets – modified cash basis as of September 30, 2015, and the related consolidated statement of support, revenue and expenses and changes in net assets – modified cash basis, and cash flows – modified cash basis for the year then ended.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these combined financial statements in accordance with the modified cash basis of accounting; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these combined financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the combined financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the combined financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the combined financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Washington Restaurant Association and Affiliates as of September 30, 2015, and the changes in their net assets and their cash flows for the year then ended in accordance with the modified cash basis of accounting.

Prior Period Financial Statements

The 2014 financial statements were reviewed by us, and our report thereon, dated March 27, 2015, stated we were not aware of any material modifications that should be made to those financial statements for them to be in conformity with the modified cash basis of accounting. However, a review is substantially less in scope than an audit and does not provide a basis for the expression of an opinion on the financial statements.

Other Matter

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The information included in the accompanying supplemental schedules on page 12 to 19 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

January 26, 2016

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2015 2014

(Audited) (Reviewed)

CURRENT ASSETS

Cash 897,914$ 818,158$

RECEIVABLES

Other receivables 20,838

Total current assets 918,752 818,158

INVESTMENTS

Northwest Foodservice Show, LLC 10,000 10,000

PROPERTY AND EQUIPMENT, net 1,363,207 1,392,767

TOTAL ASSETS 2,291,959$ 2,220,925$

CURRENT LIABILITIES

Payroll taxes withheld 1,840$ 1,817$

Security deposit payable 6,198 6,198

Federal income taxes payable (4,298) 26,356

Current portion of long-term debt 35,000 34,000

Total current liabilities 38,740 68,371

LONG-TERM DEBT 581,443 632,000

Total liabiltiies 620,183 700,371

NET ASSETS

Unrestricted 1,651,276 1,520,554

TOTAL LIABILITIES AND NET ASSETS 2,271,459$ 2,220,925$

LIABILITIES AND NET ASSETS

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATED STATEMENTS OF ASSETS, LIABILITIES AND NET ASSETS -

MODIFIED CASH BASIS

SEPTEMBER 30, 2015 AND 2014

ASSETS

The accompanying notes are an integral part of these financial statements.

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2015 2014

(Audited) (Reviewed)

SUPPORT AND REVENUE

Dues - regular memberships 1,607,978$ 1,336,762$

Dues - allied and institutional membership 130,072 124,100

Convention excess of revenue over expenses 110,857 135,248

MSC program administration fees 2,213,172 2,009,274

Membership assessments 215,837 191,302

Other nonmember revenues 964,203 868,098

Total support and revenue 5,242,119 4,664,784

EXPENSES 5,090,897 4,796,764

EXCESS (DEFICIENCY) OF SUPPORT AND

REVENUE OVER EXPENSES 151,222 (131,980)

NET ASSETS, beginning of year 1,520,554 1,652,534

NET ASSETS, end of year 1,671,776$ 1,520,554$

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATED STATEMENTS OF SUPPORT, REVENUE AND EXPENSES

AND CHANGES IN NET ASSETS - MODIFIED CASH BASIS

FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014

The accompanying notes are an integral part of these financial statements.

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2015 2014

(Audited) (Reviewed)

CASH FLOWS FROM OPERATING ACTIVITIES

Excess (deficiency) of support and revenue over expenses 151,222$ (131,980)$

Adjustments to reconcile excess (deficiency) of support

and revenues over expenses to net cash provided (used)

by operating activities

Depreciation 78,583 83,414

Loan fees and interest paid through refinance 7,333

Changes in assets and liabilities:

Other receivables (20,838)

Accounts payable (25,873)

Payroll taxes withheld 23 (4,563)

Federal income taxes payable (30,654) (33,805)

Net cash provided (used) by operating activities 178,336 (105,474)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment (49,023) (81,447)

Net cash used by investing activities (49,023) (81,447)

CASH FLOWS FROM FINANCING ACTIVITIES

Principal payments on long-term debt (49,557) (33,192)

Proceeds from long-term debt 30,426

Net cash used by financing activities (49,557) (2,766)

NET CHANGE IN CASH 79,756 (189,687)

CASH AND CASH EQUIVALENTS, beginning 818,158 1,007,845

CASH AND CASH EQUIVALENTS, ending 897,914$ 818,158$

SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest 23,710$ 35,326$

Cash paid for income tax 174,528$ 216,215$

FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATED STATEMENTS OF CASH FLOWS - MODIFIED CASH BASIS

(See Independent Accountant's Review Report)

The accompanying notes are an integral part of these financial statements.

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WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2015 AND 2014

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NOTE 1 - OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

Nature of ActivitiesThe Washington Restaurant Association (WRA) is a not-for-profit corporation organized for the purpose of promoting the general welfare of the restaurant industry in a lawful and upright manner. It aids members, primarily restaurant or lodging facility owners throughout the state of Washington, with various technical and statistical information and, if requested, to represent various groups of members in dealing with governmental agencies with information and assistance in matters concerning the industry; to publicize the industry legislation and administration orders affecting the industry.

The accompanying consolidated financial statements include the accounts of Washington Restaurant Association and its wholly owned taxable subsidiary, WRA Member Services Corporation (Member Services), and its affiliate Washington Restaurant Association Political Action Committee (the PAC) (collectively "the Association").

Member Services enrolls WRA's members in the Washington Restaurant Association Retro program and manages the members' claims. Member Services also creates new initiatives and programs for WRA's members. The PAC is a political action committee that solicits contributions from members and contributes to the political campaign of election candidates. The PAC also receives contributions outside of membership dues.

Consolidation PolicyThe accompanying consolidated financial statements include the accounts of WRA, Member Services, and the PAC. All significant intercompany transactions and accounts have been eliminated in consolidation.

Basis of Accounting and PresentationThe consolidated financial statements have been prepared using the modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. All revenue is recognized when received rather than when earned and expenses are recognized when paid.Property and equipment purchases are capitalized and depreciated over their estimated useful lives.

The Association classifies net assets as unrestricted, temporarily restricted or permanently restricted based on donor imposed restrictions. The Association had no temporarilyrestricted or permanently restricted net assets at September 30, 2015 and 2014.

Cash EquivalentsFor purposes of the statement of cash flows, the Association considers cash equivalents to be certificates of deposits that have an original maturity date less than three months.

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WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2015 AND 2014

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NOTE 1 - OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)

Credit Risk ConcentrationAt times, cash deposits with banks may exceed available federally insured amounts. There were approximately $342,000 and $360,000 of cash deposits over federally insured limits at September 30, 2015 and 2014, respectively.

Investment in Northwest Foodservice Show, LLCThe investment in Northwest Foodservice Show, LLC is accounted for using the cost method of accounting.

Property and EquipmentExpenditures incurred for the acquisition of property and equipment, with useful lives extending beyond one year, are capitalized. Property and equipment are stated at cost. Depreciation is calculated using the straight line basis over the estimated lives of the related assets of 39 years for the building and 3 - 7 years for furniture, equipment and software and automobiles. General maintenance and minor repairs are expensed as paid.

Revenue RecognitionThe Association recognizes revenues when received.

The PAC recognizes revenue from the Association's members and other contributors when membership dues are paid. The Association assessed members 12.5% of their annual dues for the years ended September 30, 2015 and 2014 for voluntary contributions to the PAC fund.

Federal Income TaxWRA is exempt from federal income tax under Section 501(c)(6) of the Internal Revenue Code, except for income, if any, derived from unrelated business income as defined in the Internal Revenue Code.

Member Services is a for-profit corporation which is part of a controlled group and taxable under subsection C of the Internal Revenue Code.

The PAC is exempt from federal income tax under Section 527(a) of the Internal Revenue Code, except for income, if any, derived from unrelated business income as defined in the Internal Revenue Code.

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WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2015 AND 2014

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NOTE 1 - OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)

Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the United States of American require management to make estimates and assumptions that effect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.

Management Review of Subsequent Events Management evaluated the effects of subsequent events through January 26, 2016, the date the financial statements were available to be issued.

NOTE 2 - PROPERTY AND EQUIPMENT

Property and equipment consist of the following at September 30:

2015 2014

Furniture, equipment and software $ 734,773 $ 708,522Automobiles 72,547 97,576Office building 1,057,434 1,057,434Land 403,000 403,000

2,267,754 2,266,532Less accumulated depreciation (904,547) (873,765)

$ 1,363,207 $ 1,392,767

NOTE 3 - LONG-TERM DEBT

The Association has a note payable to US Bank National Association totaling $616,443 as of September 30, 2015, including monthly payments of $4,923 and interest at 3.89%. The note is due with a balloon payment in October 2019. The note is secured by real estate.

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WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2015 AND 2014

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NOTE 3 - LONG-TERM DEBT (Continued)

Principal payments on long-term debt for the years ending September 30:

2016 $ 35,0002017 36,0002018 38,0002019 39,0002020 468,443

$ 616,443

During 2015, management made additional monthly principal payments on the long-term debt totaling approximately $15,000 to pay down the debt ahead of schedule.

NOTE 4 - RENTAL INCOME

The Association leases a portion of its building under a noncancelable operating lease and expired on September 30, 2015. The tenant paid rent on a month-to-month basis until December 31, 2015 before moving out of the space. Lease income from unrelated parties totaled $74,376 and $76,073 for the years ended September 30, 2015 and 2014, respectively.

NOTE 5 - CLAIMS MANAGEMENT AND MEDICAL COST CONTROL

Member Services has a service contract with Employer Resources Northwest (ERNwest) which provided claims management and medical cost control for Retro program participants. ERNwest works closely with Department of Labor and Industries personnel to close members' workers' compensation claims as soon as possible and worked with members to mitigate claims.

ERNwest also provided follow-up consultations related to program and additional data related services to Retro Trust and its governing bodies.

Member Services had expenses paid directly to ERNwest totaling $363,950 and $341,322for the years ended September 30, 2015 and 2014, respectively.

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WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2015 AND 2014

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NOTE 6 - EMPLOYEE BENEFIT PLAN

The Association maintains a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code of 1986. All employees who have completed one year of service and have attained the age of 19 years are eligible to participate in the Plan.

The Plan is funded by voluntary employee salary deferrals of annual compensation and the Association matches employee contributions, not to exceed 5 percent of the participant’s annual compensation. The Association had contributions of $61,202 and $65,579 for the years ended September 30, 2015 and 2014, respectively.

NOTE 7 - RELATED PARTY TRANSACTIONS

Washington Restaurant Association Education Foundation (the Foundation) is a charitable

organization for educational purposes and is a non-consolidated affiliate of the

Association. The Board of the Foundation is separate from the Board of WRA.

Washington Restaurant Association Retro Return Trust (Retro Trust) is a trust for the retrospective rating refund program for the members of the Association offered through the State of Washington Labor & Industries and is a non-consolidated affiliate of the Association.

Transactions with related parties include the following at September 30:

2015 2014Revenues

Retro TrustTrust fee income $ 120,000 $ 120,000Sponsorship fee 100,000 100,000

The FoundationTraining program fee income 40,008Grant reimbursements 10,097 515

$ 267,457 $ 220,515

2015 2014Expenses

The FoundationWorkplace safety expenses $ 68,349 $ 72,009

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WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2015 AND 2014

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NOTE 7 - RELATED PARTY TRANSACTIONS (Continued)

Member Services receives marketing and administrative fees from Retro Trust. The Retro Trust collects administrative fees from the members during the distribution on behalf of Member Services. Administrative fee income totaled $2,213,172 and $2,009,274 for the years ended September 30, 2015 and 2014, respectively.

The Association leases a portion of its building under an operating lease to the WRA Education Foundation (the Foundation). Lease income from the Foundation totaled $5,622 and $14,080 for the years ended September 30, 2015 and 2014, respectively.

NOTE 8 - CONVENTIONS

WRA holds an annual convention for its members. For the years ended September 30, 2015 and 2014, WRA had revenues totaling $114,180 and $147,577, respectively, and expenses totaling $3,323 and $12,329, respectively.

NOTE 9 - INCOME TAXES

WRA had unrelated business income related to sponsorship fees, advertising income, and lease income from debt financed building of approximately $186,000 and $204,000 for the years ended September 30, 2015 and 2014, respectively.

The provision for income taxes consisted of the following for the years ended September 30:

2015 2014

WRA Member Services Corporation $ 114,939 $ 157,951Washington Restaurant Association $ 59,566 $ 62,827

NOTE 10 - SUBSEQUENT EVENT

On October 1, 2015, MSC entered into a Joint Operating Agreement with the Washington Lodging Association (WLA). As part of the agreement, MSC has taken over the day-to-day management responsibilities of the WLA, and is being paid $43,945 per month for those services. As part of the transition, two additional employees have been hired to help manage the increased activities. The agreement goes through September 30, 2016, and can be automatically renewed for successive additional terms of twelve months unlesscancelled by either party with six months notice.

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SUPPLEMENTARY INFORMATION

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Washington WRA WRA

Restaurant Member Political Action Eliminating

Association Services Corp. Committee Total Entries Consolidated

CURRENT ASSETS

Cash 602,601$ 138,395$ 156,918$ 897,914$ 897,914$

RECEIVABLES

Other receivables 20,838 20,838 20,838

INVESTMENTS

WRA Member Services Corporation 130,843 130,843 (151,343)$ (20,500)

Northwest Foodservice Show, LLC 10,000 10,000 10,000

Total investments 140,843 140,843 (151,343) (10,500)

PROPERTY AND EQUIPMENT

Furniture, equipment and software 705,770 29,003 734,773 734,773

Automobiles 72,547 72,547 72,547

Office building 1,057,434 1,057,434 1,057,434

Land 403,000 403,000 403,000

2,238,751 29,003 2,267,754 2,267,754

Less accumulated depreciation 893,476 11,071 904,547 904,547

Property and equipment, net 1,345,275 17,932 1,363,207 1,363,207

TOTAL ASSETS 2,109,557$ 156,327$ 156,918$ 2,422,802$ (151,343)$ 2,271,459$

CURRENT LIABILITIES

Payroll taxes withheld 1,356$ 484$ 1,840$ 1,840$

Security deposit payable 6,198 6,198 6,198

Federal income taxes payable (8,798) 4,500 (4,298) (4,298)

Current portion of long-term debt 35,000 35,000 35,000

Total current liabilities 33,756 4,984 38,740 38,740

LONG-TERM DEBT 581,443 581,443 581,443

Total liabilities 615,199 4,984 620,183 620,183

NET ASSETS

Unrestricted 1,494,358 151,343 156,918$ 1,802,619 (151,343)$ 1,651,276

TOTAL LIABILITIES AND

NET ASSETS 2,109,557$ 156,327$ 156,918$ 2,422,802$ (151,343)$ 2,271,459$

ASSETS

LIABILITIES AND NET ASSETS

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATING STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS -

SEPTEMBER 30, 2015

MODIFIED CASH BASIS

SCHEDULE I

The accompanying notes are an integral part of these supplemental schedules.

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Washington WRA WRA

Restaurant Member Political Action Eliminating

Association Services Corp. Committee Total Entries Consolidated

CURRENT ASSETS

Cash 611,838$ 176,281$ 30,039$ 818,158$ 818,158$

INVESTMENTS

WRA Member Services Corporation 162,096 162,096 (162,096)$

Northwest Foodservice Show, LLC 10,000 10,000 10,000

Total investments 172,096 172,096 (162,096) 10,000

PROPERTY AND EQUIPMENT

Furniture, equipment and software 688,270 20,252 708,522 708,522

Automobiles 97,576 97,576 97,576

Office building 1,057,434 1,057,434 1,057,434

Land 403,000 403,000 403,000

2,246,280 20,252 2,266,532 2,266,532

Less accumulated depreciation 869,095 4,670 873,765 873,765

Property and equipment, net 1,377,185 15,582 1,392,767 1,392,767

TOTAL ASSETS 2,161,119$ 191,863$ 30,039$ 2,383,021$ (162,096)$ 2,220,925$

CURRENT LIABILITIES

Accounts payable -$

Payroll taxes withheld 991$ 826$ 1,817$ 1,817

Security deposit payable 6,198 6,198 6,198

Federal income taxes payable (2,585) 28,941 26,356 26,356

Current portion of long-term debt 34,000 34,000 34,000

Total current liabilities 38,604 29,767 68,371 68,371

LONG-TERM DEBT 632,000 632,000 632,000

Total liabilities 670,604 29,767 700,371 700,371

NET ASSETS

Unrestricted 1,490,515 162,096 30,039$ 1,682,650 (162,096)$ 1,520,554

TOTAL LIABILITIES AND

NET ASSETS 2,161,119$ 191,863$ 30,039$ 2,383,021$ (162,096)$ 2,220,925$

LIABILITIES AND NET ASSETS

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATING STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS -

MODIFIED CASH BASIS

SEPTEMBER 30, 2014

ASSETS

(See Independent Accountant's Review Report)

SCHEDULE II

The accompanying notes are an integral part of these supplemental schedules.

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Washington WRA WRA

Restaurant Member Political Action Eliminating

Association Services Corp. Committee Total Entries Consolidated

SUPPORT AND REVENUE

Dues - regular memberships 1,607,978$ 1,607,978$ 1,607,978$

Dues - allied and institutional membership 130,072 130,072 130,072

Convention excess of revenue over expenses 110,857 110,857 110,857

MSC program administration fees 2,213,172$ 2,213,172 2,213,172

Membership assessments 230,842$ 230,842 (15,005)$ 215,837

Other nonmember revenues 948,316 260,911 77 1,209,304 (245,101) 964,203

Total support and revenue 2,797,223 2,474,083 230,919 5,502,225 (260,106) 5,242,119

EXPENSES 2,793,380 2,259,836 104,040 5,157,256 (66,359) 5,090,897

EXCESS (DEFICIENCY) OF SUPPORT AND

REVENUE OVER EXPENSES 3,843 214,247 126,879 344,969 (193,747) 151,222

NET ASSETS, beginning of year 1,490,515 162,096 30,039 1,682,650 (162,096) 1,520,554

DIVIDENDS PAID (225,000) (225,000) 225,000

NET ASSETS, end of year 1,494,358$ 151,343$ 156,918$ 1,802,619$ (151,343)$ 1,651,276$

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATING SCHEDULE OF SUPPORT, REVENUE AND EXPENSES

FOR THE YEAR ENDED SEPTEMBER 30, 2015

AND CHANGES IN NET ASSETS - MODIFIED CASH BASIS

SCHEDULE III

The accompanying notes are an integral part of these supplemental schedules.

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Washington WRA WRA

Restaurant Member Political Action Eliminating

Association Services Corp. Committee Total Entries Consolidated

SUPPORT AND REVENUE

Dues - regular memberships 1,336,762$ 1,336,762$ 1,336,762$

Dues - allied and institutional membership 124,100 124,100 124,100

Convention excess of revenue over expenses 135,248 135,248 135,248

MSC program administration fees 2,009,274$ 2,009,274 2,009,274

Membership assessments 206,302$ 206,302 (15,000)$ 191,302

Other nonmember revenues 1,028,148 138,165 85 1,166,398 (298,300) 868,098

Total support and revenue 2,624,258 2,147,439 206,387 4,978,084 (313,300) 4,664,784

EXPENSES 2,649,081 1,887,314 313,544 4,849,939 (53,175) 4,796,764

EXCESS OF SUPPORT AND

REVENUE OVER EXPENSES (24,823) 260,125 (107,157) 128,145 (260,125) (131,980)

NET ASSETS, beginning of year 1,515,338 126,971 137,196 1,779,505 (126,971) 1,652,534

DIVIDENDS PAID (225,000) (225,000) 225,000

NET ASSETS, end of year 1,490,515$ 162,096$ 30,039$ 1,682,650$ (162,096)$ 1,520,554$

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATING SCHEDULE OF SUPPORT, REVENUE AND EXPENSES

AND CHANGES IN NET ASSETS - MODIFIED CASH BASIS

FOR THE YEAR ENDED SEPTEMBER 30, 2014

(See Independent Accountant's Review Report)

SCHEDULE IV

The accompanying notes are an integral part of these supplemental schedules.

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Washington WRA WRA

Restaurant Member Political Action Eliminating

Association Services Corp. Committee Total Entries Consolidated

EXPENSES

Salaries 1,126,574$ 1,073,564$ 29,745$ 2,229,883$ (29,745)$ 2,200,138$

Payroll taxes 137,107 115,116 252,223 252,223

Employee benefits 141,314 174,040 315,354 315,354

Advertising and promotion 18,854 2,876 21,730 21,730

Area coordinator expenses 27,912 27,912 27,912

Auto, travel and entertainment 54,699 17,089 71,788 71,788

Bank charge and credit card discount 18,655 2,493 21,148 21,148

Business and property tax 28,275 40,791 69,066 69,066

Claims management services 363,950 363,950 363,950

Depreciation 72,182 6,401 78,583 78,583

Dues and subscription 30,417 596 31,013 31,013

Insurance 22,222 3,925 26,147 26,147

Interest expense 23,710 23,710 23,710

Legislative expense 119,367 119,367 119,367

Membership salaries and benefits 307,355 307,355 307,355

Membership service 3,228 3,228 3,228

Membership survey 7,230 2,879 10,109 10,109

Occupancy 16,076 27,516 43,592 (21,609) 21,983

Office expense 13,263 9,314 22,577 22,577

Political contribution and lobbying 54,561 72,550 127,111 (15,005) 112,106

Postage 19,595 64,306 39 83,940 83,940

Professional service 88,313 11,325 1,640 101,278 101,278

Repairs and maintenance 42,633 21,668 64,301 64,301

Telephone 12,205 2,770 14,975 14,975

Training, meeting, seminar and event 45,456 48,434 93,890 93,890

Website expense 10,490 8,138 18,628 18,628

Other expenses:

CEO strategic projects 17,013 17,013 17,013

HERO manual expense 3,023 3,023 3,023

Hill climb and legislative reception expense 16,155 16,155 16,155

Holiday expense 6,661 1,489 8,150 8,150

Issue and research contingency 142,397 142,397 142,397

Miscellaneous 63,044 3,066 66 66,176 66,176

Newsletter and membership directory 44,110 44,110 44,110

Strategic planning 47 47 47

Workshop safety 68,349 68,349 68,349

Chapter expenses:

AC Grassroots incentive 27,406 27,406 27,406

Auto, travel and entertainment 1,432 1,432 1,432

Events 28,583 28,583 28,583

Meetings 2,121 2,121 2,121

Office expense 151 151 151

Printing and postage 499 499 499

Miscellaneous 14,281 14,281 14,281

Total expenses before provision 2,733,814 2,144,897 104,040 4,982,751 (66,359) 4,916,392

PROVISION FOR FEDERAL INCOME TAX OR

UNRELATED BUSINESS INCOME TAX 59,566 114,939 174,505 174,505

TOTAL EXPENSES 2,793,380$ 2,259,836$ 104,040$ 5,157,256$ (66,359)$ 5,090,897$

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATING SCHEDULE OF EXPENSES - MODIFIED CASH BASIS

FOR THE YEAR ENDED SEPTEMBER 30, 2015

SCHEDULE V

The accompanying notes are an integral part of these supplemental schedules.

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Washington WRA WRA

Restaurant Member Political Action Eliminating

Association Services Corp. Committee Total Entries Consolidated

EXPENSES

Salaries 1,022,705$ 788,612$ 29,745$ 1,841,062$ (29,745)$ 1,811,317$

Payroll taxes 125,767 79,771 205,538 205,538

Employee benefits 109,653 128,328 237,981 237,981

Advertising and promotion 14,637 11,988 26,625 26,625

Area coordinator expenses 28,288 28,288 28,288

Auto, travel and entertainment 39,207 10,905 50,112 50,112

Bank charge and credit card discount 16,379 3,401 19,780 19,780

Business and property tax 28,408 35,569 63,977 63,977

Claims management services 341,322 341,322 341,322

Depreciation 80,235 3,179 83,414 83,414

Dues and subscription 28,817 487 29,304 29,304

Insurance 21,057 4,143 25,200 25,200

Interest expense 35,326 35,326 35,326

Legislative expense 89,214 89,214 89,214

Membership salaries and benefits 248,088 248,088 248,088

Membership service 3,923 3,923 3,923

Membership survey 9,127 3,093 12,220 12,220

Occupancy 15,728 11,682 27,410 (8,430) 18,980

Office expense 13,072 6,971 20,043 20,043

Political contribution and lobbying 44,267 281,585 325,852 (15,000) 310,852

Postage 12,885 43,946 70 56,901 56,901

Professional service 91,517 15,645 2,025 109,187 109,187

Repairs and maintenance 40,784 20,281 61,065 61,065

Telephone 10,573 2,708 13,281 13,281

Training, meeting, seminar and event 39,673 41,295 80,968 80,968

Website expense 6,695 2,270 8,965 8,965

Other expenses:

CEO strategic projects 126,718 126,718 126,718

Donation to Education Foundation 40,000 40,000 40,000

HERO manual expense 2,599 2,599 2,599

Hill climb and legislative reception expense 15,408 15,408 15,408

Holiday expense 5,472 1,166 6,638 6,638

Issue and research contingency 85,805 85,805 85,805

Miscellaneous 50,534 12,402 119 63,055 63,055

Newsletter and membership directory 37,385 37,385 37,385

Strategic planning 1,540 1,540 1,540

Workshop safety 72,009 72,009 72,009

Chapter expenses:

Salaries and wages 23,951 23,951 23,951

AC Grassroots incentive 28,818 28,818 28,818

Auto, travel and entertainment 3,513 3,513 3,513

Events 55,862 55,862 55,862

Meetings 3,485 3,485 3,485

Office expense 1,440 1,440 1,440

Printing and postage 182 182 182

Miscellaneous 15,707 15,707 15,707

Total expenses before provision 2,586,254 1,729,363 313,544 4,629,161 (53,175) 4,575,986

PROVISION FOR FEDERAL INCOME TAX OR

UNRELATED BUSINESS INCOME TAX 62,827 157,951 220,778 220,778

TOTAL EXPENSES 2,649,081$ 1,887,314$ 313,544$ 4,849,939$ (53,175)$ 4,796,764$

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATING SCHEDULE OF EXPENSES - MODIFIED CASH BASIS

FOR THE YEAR ENDED SEPTEMBER 30, 2014

(See Independent Accountant's Review Report)

SCHEDULE VI

The accompanying notes are an integral part of these supplemental schedules.

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Washington WRA WRA

Restaurant Member Political Action Eliminating

Association Services Corp. Committee Total Entries Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES

Excess (deficiency) of support and revenue over expenses 3,843$ 214,247$ 126,879$ 344,969$ (193,747)$ 151,222$

Adjustments to reconcile excess (deficiency) of support

and revenues over expenses to net cash provided (used)

by operating activities

Depreciation 72,182 6,401 78,583 78,583

Excess undistributed revenues from affiliate 31,253 31,253 (31,253)

Changes in assets and liabilities:

Other receivables (20,838) (20,838) (20,838)

Payroll taxes withheld 365 (342) 23 23

Federal income taxes payable (6,213) (24,441) (30,654) (30,654)

Net cash provided (used) by operating activities 80,592 195,865 126,879 403,336 (225,000) 178,336

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment (40,272) (8,751) (49,023) (49,023)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid (225,000) (225,000) 225,000

Principal payments on loans (49,557) (49,557) (49,557)

Net cash used by financing activities (49,557) (225,000) (274,557) 225,000 (49,557)

NET CHANGE IN CASH (9,237) (37,886) 126,879 79,756 79,756

CASH AND CASH EQUIVALENTS, beginning 611,838 176,281 30,039 818,158 818,158

CASH AND CASH EQUIVALENTS, ending 602,601$ 138,395$ 156,918$ 897,914$ -$ 897,914$

SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest 23,710$ -$ -$ 23,710$ -$ 23,710$

Cash paid for income tax 59,931$ 114,597$ -$ 174,528$ -$ 174,528$

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATING SCHEDULE OF CASH FLOWS - MODIFIED CASH BASIS

FOR THE YEAR ENDED SEPTEMBER 30, 2015

(See Independent Accountant's Review Report)

SCHEDULE VII

The accompanying notes are an integral part of these supplemental schedules.

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Washington WRA WRA

Restaurant Member Political Action Eliminating

Association Services Corp. Committee Total Entries Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES

Excess of support and revenue over expenses (24,823)$ 260,125$ (107,157)$ 128,145$ (260,125)$ (131,980)$

Adjustments to reconcile excess of support

and revenues over expenses to net cash provided

by operating activities

Depreciation 80,235 3,179 83,414 83,414

Loan fees and interest paid through refinance 7,333 7,333 7,333

Excess undistributed revenues from affiliate (35,125) (35,125) 35,125

Changes in assets and liabilities:

Due from related entities 975 2,885 20,119 23,979 (23,979)

Accounts payable (25,595) (24,211) (46) (49,852) 23,979 (25,873)

Payroll taxes withheld (3,158) (1,405) (4,563) (4,563)

Federal income taxes payable (28,903) (4,902) (33,805) (33,805)

Net cash provided by operating activities (29,061) 235,671 (87,084) 119,526 (225,000) (105,474)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment (65,913) (15,534) (81,447) (81,447)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid (225,000) (225,000) 225,000

Principal payments on loans (33,192) (33,192) (33,192)

Proceeds from loans 30,426 30,426 30,426

Net cash used by financing activities (2,766) (225,000) (227,766) 225,000 (2,766)

NET CHANGE IN CASH (97,740) (4,863) (87,084) (189,687) (189,687)

CASH AND CASH EQUIVALENTS, beginning 709,578 181,144 117,123 1,007,845 1,007,845

CASH AND CASH EQUIVALENTS, ending 611,838$ 176,281$ 30,039$ 818,158$ -$ 818,158$

SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest 35,326$ -$ -$ 35,326$ -$ 35,326$

Cash paid for income tax 59,669$ 156,546$ -$ 216,215$ -$ 216,215$

(See Independent Accountant's Review Report)

WASHINGTON RESTAURANT ASSOCIATION AND AFFILIATES

CONSOLIDATING SCHEDULE OF CASH FLOWS - MODIFIED CASH BASIS

SCHEDULE VIII

FOR THE YEAR ENDED SEPTEMBER 30, 2014

The accompanying notes are an integral part of these supplemental schedules.

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Membership Report

Quar

terly

Inve

stm

ent

Revenue

New

Sal

es

Retentio

n

Ambas

sadors

Mento

rs

Billab

le M

ember C

ount

As of 1

1/5/1

5 (top)

As of 1

2/31/1

5 (belo

w)

Goal is

250 b

y Ju

ly 2

017

Notes

Total Goal $345,609 $46,800 92% 387 88 2,003

Actual $369,073 $41,211 93% 166 31 2,216

.+ or - $23,464 88% +2 no change 213

Goal $7,200 92% 45 8 178

Actual $2,350 90% 22 0 179AC: Michele Edwards

.+ or - ($4,850) 1

Goal $3,600 93% 30 8 236

Actual $11,733 97% 19 8 250AC: Monica Hollar

.+ or - $8,133 full 14

Goal $7,200 92% 45 20 238

Actual $7,121 94% 18 1 249AC: Cathy Fox

.+ or - ($79) 11

Goal $3,600 93% 54 20 263

Actual $7,090 97% 36 14 265AC: Tamorro Farrell

.+ or - $3,490 2

Goal $7,200 92% 36 8 253

Actual $2,790 89% 19 8 253AC: Kim Hildahl

.+ or - ($4,410) full

0

Goal $7,200 92% 45 4 222

Actual $3,960 83% 4 N/A 223AC: Shawna Mendenhall

.+ or - ($3,240) 1

Goal $7,200 92% 45 20 160

Actual $1,335 94% 10 N/A 160AC: Emily Williams

.+ or - ($5,865) 0

Goal $0 92% N/A N/A 187

Actual $0 88% N/A N/A 182AC: Open Territory

.+ or - (5)

Goal $0 92% 51 4 203

Actual $0 90% 14 N/A 201AC: Una Wirkebau .+ or - $0 (2)

Goal $3,600 93% 36 16 250

Actual $4,832 96% 24 0 254AC: Donna Tikker

$1,232 (4)

Eastern WA

Counties of Clallam, Jefferson,

Kitsap, Mason, Grays Harbor,

& Thurston

Counties of Pacific,

Wahkiakum, Lewis, Cowlitz,

Clark, Skamania, Klickitat

Counties of Spokane, Pend

Oreille, Stevens, Ferry, and

Lincoln

Snohomish,

Chelan, Douglas

Snohomish, Chelan and Douglas

counties. King County Cities of

Shoreline, Lake Forest Park,

Bothell and Kenmore

Thurston, Kitsap,

Peninsula

Southwest

Southeast Counties of Kittitas, Grant,

Yakima, Benton, Franklin,

Adams, Walla Walla,

Columbia, Whitman, Garfield,

and Asotin

S King

Pierce

Northwest

East King County

Downtown Seattle

South King County, includes

Capitol Hill in Seattle. Does

not include Federal Way &

Auburn

Pierce County plus Federal

Way & Auburn

Counties of Whatcom, Skagit,

Island, San Juan, Okanogan

E King

Seattle

Donna continues to perform well as one of the

seasoned AC's. Donna reached the 250 goal in the

beginning of Q1 and continued growth to end of Q1.

Donna also did well on calling on lodging members

and potential members.

During Q1, we had 3 AC's attain the 250 member mark

with one other within striking distance. The team is

working hard and supporting each other. We have

brought training in house which should make the

training more consistent and save money. Team is

also working on increasing customer contact to

increase retention of members. Transition as the new

Director is going well. I had a lot to learn the first Q1

and a lot of personnel issues, training and sales issues

to tackle.

Michele had issues with former coach. Jen and I met

with her to help refocus her and hear out her issues.

Michele struggled in Q1 with new sales but did make

progress in her retention numbers.

Una was interviewed in December but did not start

until January 2nd. This territory was open for Q1.

Shawna has made steady improvement in Q1.

Shawna ended Q1 with 222 members. Both her new

sales and retention continue to improve month over

month. Shawna is still in training and should be

completed by early Q2.

Emily struggled in Q1 but made steady progress on

improving. Emily finished Q1 with 160 members.

Emily did a great job with retention. Emily was still in

training during Q1. Should be finished with training

by early Q2.

Monica had a strong Q1. She grew her membership to

250 in Q1. Monica hit sales goal for each month in

Q1. Monica also did a great job with retention this

Q1.

Cathy started Q1 slow but ended Q1 very strong.

Cathy also took on additional responsibilities as the

trainer for the new hires. The additional

responsibilities have helped focus her and inspired

new energy into her job. Cathy ended Q1 at 249

members.

Tamorro had a very strong Q1. She maintained and

grew her 250+ member count. She ended the Q1 at

265 members. Her customer service is exemplary

which is why her retention numbers are so high.

Kim struggled during Q1 with new sales and retention.

Kim finished Q1 at 253 member count. Working with

Kim on refocusing efforts on new sales. Kim does give

her current members strong support but gets a little

too deep into the woods with issues. This ends up

taking to much time from sales and retention. Kim

has done a great job with filling her mentor

requirement.

This territory remains open. Retention is covered by

Kristi. Tamorro has been fielding member requests

from this territory. Currently in the process of

interviewing for this territory and plan on having it

filled by the end of May 2016 if we are able to find a

qualified candidate.

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Washington Restaurant Association

Resolution Number 2

Whereas, the Board of Directors of the Washington Restaurant Association wishes to establish a fiscal policy pursuant to Paragraph Number 1 of Article VI of the Bylaws of this Association, therefore

Be it resolved, that the Board of Directors of the Restaurant Association hereby authorizes the Executive Committee to manage the affairs and transact normal business of the Association until the next Board Meeting to be held on July 26th, 2016 in Seattle, Washington.

The undersigned, Chair of the Washington Restaurant Association, hereby certifies that a meeting of the Board of Directors, being duly held at the Washington State Convention Center in Seattle, Washington on the 22nd day of March 2016, at which a quorum was present and did take the above stated action.

In witness thereof, I have signed this certificate this 22nd day of March 2016.

Attest:

_______________________ _______________________ Secretary Chair Mark Chriest Phil Costello