Clean Bill of Financial Health For WMMB

By Ron Johnson Dairy Editor
Thursday, October 30, 2008 7:50 AM CDT

Once again, the Wisconsin Milk Marketing Board (WMMB) has received a clean bill of financial health.

The diagnosis came during the WMMB’s regularly scheduled meeting last week. It was delivered by Douglas Barry, with the Madison accounting firm of Suby, Von Haden and Associates.

At the end of its 2007 fiscal year last June 30, the WMMB counted total assets of $17.5 million. That was up some 2.2 million from a year earlier. On June 30, 2007, the WMMB had $15.3 million in total assets.

The organization owned, last June 30, property and equipment valued at just over $1 million. That was down approximately $29,000 from a year earlier, due to depreciation.

In addition, the WMMB had current assets of $6.5 million at the end of its most recent fiscal year. That number is down $3.6 million from a year earlier.

The change is due to reductions in four areas. First, the WMMB had cash and cash equivalents amounting to $2.05 million this past June 30. A year earlier, that category stood at $3.41 million.

Its short-term investments are less, too. At the end of June, the WMMB had just over $679,000 in short-term investments, compared to slightly more than $3 million the year before.

The WMMB is carrying a smaller inventory of promotional items, too. That was down to $1.17 million this past June 30, compared to $1.23 million the year before.

More expenses have been prepaid. That amount stood at $394,002 at the end of this past fiscal year, versus $364,820 a year earlier.

A larger number under “accounts receivable” also helped lower the WMMB’s total current assets. On June 30 it was $35,246, up from $27,544.

More dairy farmer checkoff money waited to be collected compared to a year earlier. Four months ago that figure was $2.07 million, some $74 above where it was on June 30, 2007.

A note attached to the financial statement explains that milk assessments are collected by the buyers of the milk. “Assessments receivable” have been “recorded by milk handlers” but not yet paid to the WMMB.

“The organization (WMMB) determines when assessments are past due or delinquent, based on how recently the payments have been received,” the notation states. “Assessments receivable are generally current and received within a month after the handlers purchase the milk. No interest or finance charges are billed on any past due assessments receivable.”

Finally, the WMMB has more accrued interest receivable. That was at $93,913 at the end of this past June, compared to $61,102 compared to a year earlier.

Barry noted that the organization holds more long nterm investments than it did in 2007. This past June 30 the WMMB had $9.9 million in such investments, up from $4.04 million in 2007.

On the opposite side of the ledger, the WMMB had total liabilities of $1.85 million. That was up from $1.6 million in 2007.

Accounts payable were $1.19 million, compared to $1.08 million a year earlier. Accrued expenses and other liabilities were $546,320, compared to $574,332 in 2007.

This latest financial statement also lists deferred revenue of $106,809, versus zero in 2007. This deferred revenue is explained as belonging to the national butter advertising program.

More checkoff money

Higher milk production in Wisconsin has led to more checkoff money going to the WMMB. This latest financial statement shows the WMMB receiving $24.04 million from state dairy farmers during its 2008 fiscal year. During its 2007 fiscal year, it received $23.39 million from dairy farmers.

On July 1 of this year, the start of the WMMB’s 2009 fiscal year, it had $2.24 million yet to allocate.

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