COLUMN

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which reports a loss before depreciation of ($756,504.00). This discrepancy indicates an additional loss of ($518,921.00) in 2022 not accounted for in the President’s statement.”

My explanation: In 2021, the budget approved by the GRF Board under Executive Director Randy Ankeny exceeded income projections by $1,118,521. However, the discrepancy indicating an “additional loss” of ($518,921.00) in 2022 is explained by GRF refunding $218,521 of the $1,118,521 from the 2021 Excess Income back to the Mutuals and transferring $300,000 into our Reserve Fund. The remaining $600,000 was kept in GRF Operating Funds and applied to the following year’s budget, as required by Revenue Ruling 70-604 and 75-371. Otherwise, any excess income would have been taxed.

There is an auditor’s note on page 5 of the 2022 audited financial reports documenting this fact. DISCLOSURE: I was GRF Treasurer from June 2021 to June 2022.

In essence, GRF spent $237,983 more than we budgeted for in 2022 (based on projections utilizing historical GRF budget data, current market conditions, volatility in the insurance market, etc.). That loss can be attributed to a variety of factors. Of note, the 2020 and 2021 actual figures were affected by the COVID-19 Pandemic, which impacted the usefulness of such data when calculating the 2022 Budget.

In Part 2, I will cover 2023 financials and other issues.

You may also access my verbal report given at the 1/16/2025 Finance Committee meeting at https:// www. youtube. com/ live/ Fo_ tRtmeDU? si=SBMjOK2ab2_ty47s. Skip to the 1:01:04 marker to go directly to my report.