SCHEDULE D-1.—Analysis of expense, Publications Division, year ended Dec. 31, 1951-Continued VETERANS OF FOREIGN WARS OF THE UNITED STATES, National Headquarters, Kansas City, Mo. DEAR SIRS: We have made an examination of the accounts of Robert B. Handy, Jr., quartermaster general, Kansas City, Mo., for the 10 months ended June 30, 1951, and present our certificate and the following financial statements: Statement of assets and liabilities, June 30, 1951 (exhibit A). Summary of net income and fund balances (surplus) for the 10 months ended June 30, 1951 (exhibit B). Supply department, net income (schedule 1). Poppy sales, net income (schedule 2). National headquarters office building, garage, and parking lot, net income (schedule 3). Rental property, net income (schedule 4). Statement of expenses (schedule 5). Statement of expenses applicable to period prior to September 1, 1950 (schedule 6). Statement of recorded cash receipts and disbursements for the 10 months ended June 30, 1951 (exhibit C). Statement of cash disbursements (schedule 7). We submit also the following comments: OPERATIONS Operations for the 10 months ended June 30, 1951, resulted in net income of $236,451.06 as compared with net income of $199,877.57 for the 10 months ended June 30, 1950, as shown in the following summary: The net decrease in income is accounted for as follows: The increase of $4,893.52 in supply department net income is summarized as follows: Commissions paid to State departments during the current year were paid during the full 10-month period ended June 30, 1951, whereas commissions in the prior period were paid only from March 1 to June 30, 1950. The national council of administration, at a meeting held on February 13, 1950, authorized payment of a commission of 10 percent of sales to State departments. The decrease in supply department expenses was due largely to decreased advertising in VFW magazine and a reduction in the amount of obsolete merchandise written off. The increase of $8,080.45 in poppy sales net income is summarized as follows: The national council of administration, at its meeting on February 12, 1951, authorized the quartermaster general to charge one-half of the poppy department expenses to the VFW National Home. The increase of $9,598.34 in net income of the national headquarters office building, garage, and parking lot is summarized as follows: The decrease of $47,180.89 in total expenses of the organization for the 10 months ended June 30, 1951, as compared with the 10 months ended June 30, 1950, is summarized as follows: The cash balance at June 30, 1951, consisted of the following: On deposit with Commerce Trust Co., Kansas City, Mo.: General fund account__ Payroll fund account_. National headquarters building account-- Total---- Certificates of deposit of City National Bank & Trust Co., Kansas City, Mo.: 1-percent certificates maturing— Oct. 25, 1951. Aug. 23, 1951. Aug. 1, 1951_. 12-percent certificates, due Sept. 1, 1951__. Total___. Petty cash funds. Total_____ $275, 715. 42 21, 379. 49 9, 769. 11 306, 864. 02 150,000.00 50,000.00 50, 000. 00 50, 000, 00 300, 000. 00 914.00 607, 778.02 The cash on deposit and the certificates of deposit were verified by certification obtained direct from the related banks. The petty cash funds were verified by count or by confirmation obtained direct from the custodians. ACCOUNTS RECEIVABLE, POPPY DEPARTMENT, $130,874.29 As of June 30, 1951, the poppy department receivables included $130,601.29 due from 26 State departments and three overseas posts on the 1951 Memorial Day sale, and $273 due from one overseas post on the 1950 Memorial Day sale. We requested confirmations of amounts due from State departments and received acknowledgments from six State departments with balances due amounting to $68,887.73. Collections recorded on the State departments accounts subsequent to June 30, 1951, aggregated $80,053.97. INVENTORIES AT COST, $189,577.94 Physical inventories were taken as of June 30, 1951, by employees of the various departments. We made tests of the quantities, prices, and computations to the extent we considered appropriate. The VFW Magazine raw paper stock, amounting to $68,651.61, located at Kansas Color Press, Inc., Lawrence, Kans., was verified by confirmation received direct from that company. A sum |