Treasurer's Report

By Tong Lee

In fiscal year 2002, the USATT made significant progress in its continuing rebuilding mode to strengthen its financial position and to increase reserves. Revenues were $1,203,313 and expenses were $1,070,426, resulting in a net change in assets of $132,887. Of these, $117,300 was derived from grants from USOC and El Pomar Foundation for the purchase of a 17% equity share of a building at which USATT headquarters is now located. Net total assets, defined as total assets less total liabilities increased from $38,335 to $171,222 during the year.

Highlights of Fiscal Year 2002 are as follows:

• The U.S. Nationals and the U.S. Open together incurred a net loss of $14,000. The U.S. Nationals generated a surplus of $27,000 due primarily to keeping a watchful eye on expenses with a modest increase in entry fees. On the other hand, the U.S. Open generated a deficit of $41,000. A new and unexpected ITTF requirement that USATT provide two days instead of one, and a satellite uplink to enable live broadcast of Pro Tour matches to China incurred $32,000 more in TV expenses compared to the year before. If not for these, the deficit for the Open would have been reduced to $9,000, and the net income from operations for the year would have been even significantly more impressive.

• The expenses of USATT headquarters, including those for the ratings coordinator, totaled $277,000, and the net expenses (total expenses less advertising revenue) for the magazine was $59,000. Against these two expenses of $336,000, the Association generated $228,000 from membership and ratings fees.

• Our outside auditor Ken Waugh and Associates commend the Association for implementing all of their prior year’s recommendations. The accounting firm further commented that our accounting records improved significantly during 2002 because of our hiring of a professional accountant in February 2002. In addition, the USOC auditor wrote in her report that "all funds paid to USATT during 2002 are fully supported," and "they have strengthened internal controls and it appears they are on track to rebuilding their reserves."

For more financial details on FY2002, please view USATT 2002 tax return, IRS Form 990 (7MB, PDF format). The independent auditor’s report will not be available on the web site, but USATT members may request in writing a copy of this 11-page report from headquarters. Please include a check of $3.25 to cover the cost of photocopying and postage.

Although the FY2002 results were encouraging, fiscal year 2003 will be a challenging year. Several primary sources of revenue such as USOC funding, and USTTA Foundation funding have seen declines in the past several years. At the same time, inflation increases overhead and operating expenses. Health and liability insurance have increased significantly in the past several years, and particularly since 9/11. The difference of over $100,000 between revenues from membership and rating fees and expenses from headquarters and publication of a quality magazine must be reduced. The Board of Directors will continue with its policy to run the Association on a surplus budget and to build up reserves. In addition to spending wisely and controlling expenses, we must increase our efforts to generate more revenues from as many sources as possible. Hopefully, the membership will step up to the plate to contribute their share in this endeavor.