AMHA TREASURERS MESSAGE
177420 203rd Street East
Hastings, MN 55033-8704
May 2020 Treasurer Report
Our financial position for 2019 ended very well. We ended the year with a small profit of $2,382.41 before depreciation. Although this number seems very small, it is much better than the 2018 reported loss of $133,821.15 before depreciation. I am happy to say that we have been able to make a positive change to the financial position of AMHA in a short amount of time and feel very comfortable that we will be able to continue to do so with the continued support of the membership.
We have been faced with some trying times for our association as well as our membership so far in 2020. I am proud of our office staff and BOD for continuing to move the association forward so the members are affected in the least way possible during these unprecedented times. We have continued to move forward with our Regional and World Shows and we look forward to seeing everyone there.
As many of you know, we had to close the office down for the month of April due to the pandemic the World has been facing. We were lucky to be able to open the office again in May. These past few months have been hard on everyone, including AMHA, and we have had a significant decrease in revenue because of all that is going on in the World. However, we were able to offset those losses by cutting our expenses significantly during the shutdown and strategically reopening the office after the shutdown. Although revenue has been significantly decreased, expenses have also been decreased proportionately. We are currently on track to end the year with a similar net profit to the budgeted amount.
With the help of our survey presented to the miniature horse community, we were able to determine that we should have extremely well attended Regional Shows this year. We are excited to say that we should have more horses at each regional show in 2020 than we had in 2019. We expect our profit from these three shows to help carry us through the year and into 2021. Thank you to all of you who have agreed to attend our shows and helping AMHA move forward in these trying times.
I hope everyone is staying healthy and safe and we look forward to seeing everyone at the Regional and World Show.
Dawn Henrich, Treasurer of AMHA
AMHA TREASURES REPORT
As treasurer of AMHA, I would like to personally thank all of the members and staff who are working hard to help AMHA succeed financially. Your efforts are much appreciated and needed at this time. Laura is doing an amazing job getting class sponsors for the World Show. If you have not sent in your sponsorship, please do so. If you have not placed an ad in our e-magazine, please do so. We also have corporate sponsor packages available and advertising information for our World Show program will be coming out soon.
We have finalized the 1st quarter of 2019 financial statements. Our organization generates most of its revenue in the 2nd & 3rd quarters and the 1st and 4th quarters suffer. However, we did generate more revenue in the 1st quarter than we expected but we did have some expenses over and above the budgeted amounts. We are working hard everyday to get back on track and hopefully by year end, we will end up very close to our budgeted amounts.
We would like to welcome Becky Myers to the AMHA team. Becky comes to us as an experienced bookkeeper and has been doing a great job working through the accounting over the last month. Over the next quarter, we will be working together through the list of accounts receivable and verifying the balances and will be attempting to collect any outstanding balances from our members. If you receive an emailed bill from AMHA, your prompt payment is appreciated.
As many of you know, our current computer system is antiquated and very challenging for the staff to process paperwork efficiently. We are currently evaluating our computer system and hope to, at the very least, get a few new computers for the staff so they are not always working on the 10+ year old computers that are old and tired. However, our current software does not allow us to upgrade all of our computers due to compatibility issues. We are also looking into a new ecommerce system that will allow for processing memberships and other simple items via the website. Our goal is to have the ecommerce system set up so the staff does not have to use much of their valuable time to process those transactions. Automation is the key to a successful ecommerce system for us and that is what we are striving for.
After looking at last year’s expenses we determined that we spent almost $25,000 in credit card processing fees. Unfortunately, AMHA is not in a position to continue to carry those costs. Therefore, we will begin to charge 3.5% for each domestic credit card payment that we process beginning May 1st. We apologize for this inconvenience but the BOD feel that it is necessary at this time. If you do not wish to pay the credit card fee, we do have a new payment option for our members. We are able to process ACH payments directly from your bank account. If you would like to keep your banking information on file with AMHA, please complete the ACH authorization form on the website and return it to firstname.lastname@example.org.
We have changed our credit card processing company in an attempt to lower our processing rates. We hope to have reduced rates in the near future and will be able to pass those reductions on to the members at that time. The new processing system requires the CVV number for each credit card which was not required on the old system. The good news is, we can now store the credit card information directly in the processing software which will make the process much more efficient for the office. Thank you for your patience as we transition everyone over to our new software.
We have made and will continue to make a lot of positive changes for AMHA. We appreciate the support of all of our members. This is your organization and we know that it is very important to many to see it succeed.
Dawn Henrich, Treasurer of AMHA
AMHA TREASURES REPORT
February 14, 2019
As your newly elected Treasurer to the AMHA Executive Committee as of November 2018 and a newly elected member to the Board of Directors of AMHA, I would like to take the opportunity to introduce myself. My name is Dawn Henrich from Lowell, FL. I have been involved in the miniature horse industry for 30 years. My contribution to the current Executive Committee is that I have a strong background in finance and accounting. I have a Masters Degree in Accounting and Financial Management, I am a Florida licensed CPA, and currently own my own accounting consulting firm. I bring the accounting knowledge and experience that AMHA needs to the new Executive Committee of AMHA.
It is my understanding that the AMHA accounting system “crashed” in February of 2017. The AMHA staff worked on the long and arduous task to recapture the data and it was well over a year before any financial reports were able to be produced. We had an outside accounting firm assist AMHA with moving forward and implemented using a QuickBooks system for our accounting but were still unable to produce accurate and beneficial financial reports for the Board of Directors and the membership. With this new challenge before me as Treasurer of AMHA, I did not hesitate and jumped in with both feet. Sheryl Petersen, your new AMHA President; Joanne Ross, your new AMHA Vice President; and I spent 4 long days at the AMHA Office going through the financial software and daily transactions to get everything up‐to‐date and balanced to the bank accounts. In truth, I was not prepared for the absence of organization and accuracy that I uncovered in the existing financial records. Some of this lies in the fact that the office was operating between two different accounting systems and not fully utilizing all facets of the QuickBooks software. In addition, there were approximately $75,000 in expenses that were erroneously allocated to 2018 and should have been in the 2017 financial statements. Therefore, our 2018 year‐end loss should have been closer to $80,000 not $155,000 and our 2017 financial statements should have shown a significant loss. I have spent the past 4 months working very closely with the office staff and the AMHA Executive Committee to implement new policies and procedures in handling our daily transactions to get our financial data updated and accurate. My priority is to make sure our financial reporting is clear, correct and understandable—not only for the AMHA Board of Directors, but for you, the members. It was a long and arduous process, but it is complete for 2018 and we continue to evaluate the daily process to improve the processes and member experience at AMHA.
As many of you are aware, there has been an economic downturn in the equine industry for quite some time—whether it be with breed associations or organizations like your local 4‐H. The challenge of budgeting for changes in the equine industry are not unique to miniature horses. The vast majority of breeds are experiencing decreased membership, fewer foal registrations and smaller turnout at horse shows, hence a decrease in revenue. Your new Executive Committee is focused on maintaining the financial stability of AMHA in this time when equine associations are facing a downward trend. Armed with solid and accurate financial information, the current AMHA Board and Executive Committee have been diligently reviewing options for cost savings and increasing revenue. We have had to make some difficult financial decisions that may result in changes to fees, have eliminated reimbursements, and have resulted in the reduction of staff and redistribution of job‐related duties at the AMHA Office.
Change for the better has its own learning curve and we ask that you be patient with the reorganization process. I can assure you, no decisions are being made lightly.
The Board and EC are working on ways to increase revenue and reduce expenses. Some of the items we are working on include:
A more efficient use of our current office technology and staff
Reinstatement of our 501(c)(3) status to allow for tax deductible donations from members and corporations
Securing a pro bono contract for a professional marketing firm to handle our E‐Magazine and Eblast marketing
Credit card processing fee to be instituted
Revising our year end honor roll program
I can assure you 100% that the singular goal of your current Executive Committee and your Board of Directors is to see the continued success of AMHA. Many of the current financial issues within AMHA exist because programs, rules and policies have been voted into existence without proper financial impact statements being presented to the Finance Committee and the Board of Directors prior to the actual vote. That must stop. We need to put the practicalities of AMHA first and run it like a business. These poorly researched expenditures, programs and policies did not happen in any one year or under any one particular Board of Directors or CEO. Our current financial situationis the result of the decisions of many Boards and the membership over many years.
The good news is that with our recent changes, we have been able to balance our budget and anticipate turning a profit by the end of this year. However, we need your continued support as members to make that a reality. We have had many people ask, “What can I do?” Well, here are some suggestions:
AMHA needs YOU to place ads in the E magazine.
AMHA needs YOU to showcase your farms and/or stallions on our website and World Show webcast
AMHA needs YOU to register your horses and keep their paperwork up‐to‐date.
AMHA needs YOU to join us at our local, Regional and World Shows and support them through entries and class sponsorship
AMHA needs YOU to be an ambassador for our Association and invite others to join us in the miniature horse industry that we all know and love.
This is YOUR Association! We ask that you support AMHA in any way you can. Our friends, horse and human, are counting on us to pull together as a family to keep AMHA successful. Your AMHA Office Staff, Executive Committee and Board of Directors are working very hard to insure success, but we cannot do it alone. We need your support! The Financial Reports for AMHA are available. Our plan is to update them quarterly. I look forward to serving as your Treasurer and appreciate your support as we continue to move AMHA into the future.
Dawn Henrich, Treasurer of AMHA
Our Leadership > AMHA Financials