FY2013 had two budgets: one approved by the Board of Directors for Q1 and Q2, and another revised budget for Q3 and Q4. In the revision, income change was +$150/mo, and expense change was +$380/mo. Net (buffer) change was -$230, so although expenses were underestimated by the first budget, the buffer was able to absorb the increase.
Freeside doubled its reserves in FY2013, from 1.41mo of operating expenses to 2.64mo at year’s end in our official reports. The actual amount in reserves at year’s end was over 3mo of operating (meeting one of the Board’s key objectives for Freeside), due to timing of transfer of funds from Dwolla, Payal accounts not arriving in the operations account until after DEC-31.
The largest growth in income came from new membership. We increased average monthly membership income by 150% from the average income at the start of 2013. Classes provided the second largest gains for income, increasing by 243% over the revenues from 2012.
Higher operating expenses became the norm in 2013, because along with revenue gains in classes comes more payments to teachers. More frequent use of Freeside by members and the public led to higher than expected utility bills. Some of the other drivers of expenses were insurance payments, facility maintenance, and repair of equipment.
2013 was also marked by great gains in membership. The chart below illustrates the historical trend of the membership from Freeside’s inception to the present. We had a growth of 158% in membership, from 32 members to 58 at year’s end.