Page 26 - MFB State Annual Meeting 2018

2018 TREASURER’S
Report
Members of Michigan Farm Bureau:
Michigan Farm Bureau’s (“MFB”)
balance sheet remains strong,
supported in part by financial
support from its affiliates. Total
assets as of August 31, 2018
were $13,490,000, an increase
from its prior year end balance of
$11,649,000 on December 31, 2017.
MFB’s two major assets are ‘cash and
money market funds’ and long-term investments. ‘Cash and money market funds’ were $4,122,000, while short-term investments consist of bonds with a value of $3,167,000. Included in the ‘cash and money market funds’ is the receipt of $1,500,000 from MFB Financial Corporation and another $1,300,000 from the Michigan Foundation for Agriculture (“MFA”). Long-term investments of $4,809,000 at August close consisted of bonds with maturities of more than
a year.
Historically, one of MFB’s major assets was its investment in MFB Inc., a taxable entity, housing activities that are unrelated to Michigan Farm Bureau’s primary mission. Effective January 1, 2016, this entity was transferred to be a directly owned entity of MFB Financial Corporation. This change does not impact operations of any of the entities, but allows for an effective mitigation of tax liability. The net equity of MFB, Inc. was $4,582,000 as of August 31, 2018.
The two major components of the Liabilities and Equity section of the balance sheet as of August 31, 2018 are deferred membership dues of $2,532,000 and undesignated reserves of $8,042,000. Deferred membership dues represent dues already collected, but for which the benefits from programs, activities and membership services are
to be provided over the remaining unexpired period
of the annual membership. There is no long-term debt outstanding. When undesignated reserves and deferred membership dues are added together, MFB has over $10.5 million in reserve.
MFB primarily funds its activities with membership dues revenue, a grant from the MFA, investment income and program fees. Through August 31, 2018, total revenues are $7,004,000. The combined program and general operating expenses through August 31 are $6,061,000. Included in the program activity were net expenditures of $496,000 for core program activities through August 2018. The State Annual event is the largest core program event with an estimated
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