AROUND THE PICNIC TABLE
Finance
David M. Morris, C.P.A.
Class A (nonalcoholic) Trustee
General Service Board Treasurer
COMMUNICATING TO THE FELLOWSHIP
ABOUT FINANCE
 Spiritual value of the 7th Tradition
 Services provided to the Fellowship
 Publishing – 75th Anniversary Big Book & literature
price increase
 Grapevine and need for subscription growth
 La Viña
 Transfer from Reserve Fund to Pension Plan Fund
 Humanize Reserve Fund ownership
 Not $14.1 m, but $216.10 per group, $10.26 per member
1
GENERAL SERVICE BOARD
FINANCIAL SUMMARY OF OPERATIONS 12-31-14
G.S.O.
GENERAL
FUND
THE
A.A.W.S.
PUBLISHING
THE
A.A.
GRAPEVINE
LA VIÑA
2014
ACTUAL
2013
ACTUAL
REVENUE
Net Sales
Contributions
$16,872,280
$134,809
$6,898,068
Interest
TOTAL REVENUE
$3,012,463
$20,019,552
$15,751,328
6,898,068
6,906,371
7,526
11,004
35
391
7,100
6,898,103
16,872,671
3,019,563
134,809
26,925,146
22,668,703
4,889,864
383,569
31,672
5,305,105
3,397,968
38,627
27,840
EXPENSES
Printing
Royalties
38,627
Shipping & Warehouse
2,049,813
590,530
33,359
2,673,702
2,159,128
201,804
10,940,177
10,256,194
6,397,078
6,623,358
Program Expenses
6,316,635
3,316,218
1,105,520
Supporting Services
3,408,575
2,374,386
614,117
TOTAL EXPENSES
9,725,210
12,668,908
2,693,736
266,835
25,354,689
22,464,488
(2,827,107)
4,203,763
325,827
(132,026)
1,570,457
204,215
Reserve Fund Balance at December 31 available to cover operating expenses
14,094,966
15,301,653
Operating Expenses
17,337,255
16,879,552
9.8
10.9
NET INCOME (LOSS) OPERATIONS
RESERVE FUND
Number of months Operating Expenses-approximate
*Excludes non-operating Funds: Reserve, Capital Projects, Pension, Post-Retirement Medical Benefits
2
GRATITUDE
7TH TRADITION
3
CONTRIBUTIONS
2014
2013
$5,816,065
$5,718,306
Specials¹
507,201
629,542
Individuals
396,445
398,880
Foreign, WSM etc.
127,400
73,800
Memorials
31,473
63,178
Special Meetings²
14,509
12,815
4,975
9,850
6,898,068
6,906,371
Group Contributions
Other
Totals
¹Special contribution is one that comes from any number of A.A. entities that is not an A.A.
Group, for example, a Conference, a Committee, an Area, a District, an Intergroup, etc.
²A Special Meeting is a meeting that does not want to be a group but does want to contribute to
the General Service Board.
4
CONTRIBUTION HISTORY: 1985—2014
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$0
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$1,000,000
Total Contributions
Total Percentage of Groups
5
PERCENTAGE OF GROUPS CONTRIBUTING
46.00%
45.00%
44.00%
43.00%
42.00%
41.00%
40.00%
39.00%
2005
2006
2007
2008
2009
2010
Percentage of Groups Contributing
2011
2012
2013
2014
6
CONTRIBUTION HISTORY: 1985—2014
$8,000,000
60.00%
$7,000,000
50.00%
$6,000,000
40.00%
$5,000,000
$4,000,000
30.00%
$3,000,000
20.00%
$2,000,000
10.00%
$0
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$1,000,000
Total Contributions
0.00%
Total Percentage of Groups Contributing
7
THROUGH OUR OWN CONTRIBUTIONS
8
A DOLLAR IS NOT WHAT IT USED TO BE
1945 - $1.00
2015 - $13.00
$13.
$13.00
$$13.00
9
INFLATION CALCULATOR
$1.00
in
1945
has the buying power of
$13.00
in
2015
$ .08
in
2015
has the buying power of
$ 1.00
in
1945
Source: U.S. Department of Labor
10
G.S.O.’s TWO BASIC FUNCTIONS
• Publishing
• Services on Behalf of the G.S.B.
Group Records
11
GENERAL SERVICE BOARD
FINANCIAL SUMMARY OF OPERATIONS 12-31-14
G.S.O.
GENERAL
FUND
THE
A.A.W.S.
PUBLISHING
THE
A.A.
GRAPEVINE
LA VIÑA
2014
ACTUAL
2013
ACTUAL
REVENUE
Net Sales
Contributions
$16,872,280
$134,809
6,898,068
Interest
TOTAL REVENUE
$3,012,463
$20,019,552
$15,751,328
6,898,068
6,906,371
7,526
11,004
35
391
7,100
6,898,103
16,872,671
3,019,563
134,809
26,925,146
22,668,703
4,889,864
383,569
31,672
5,305,105
3,397,968
38,627
27,840
EXPENSES
Printing
Royalties
38,627
Shipping & Warehouse
2,049,813
590,530
33,359
2,673,702
2,159,128
201,804
10,940,177
10,256,194
6,397,078
6,623,358
Program Expenses
6,316,635
3,316,218
1,105,520
Supporting Services
3,408,575
2,374,386
614,117
TOTAL EXPENSES
9,725,210
12,668,908
2,693,736
266,835
25,354,689
22,464,488
(2,827,107)
4,203,763
325,827
(132,026)
1,570,457
204,215
14,094,966
17,337,255
15,301,653
16,879,552
9.8
10.9
NET INCOME (LOSS) OPERATIONS
RESERVE FUND
Reserve Fund Balance at December 31 available to cover operating expenses
Operating Expenses
Number of months Operating Expenses-approximate
*Excludes non-operating Funds: Reserve, Capital Projects, Pension, Post-Retirement Medical Benefits
12
GENERAL SERVICE OFFICE FUNCTIONAL EXPENSES—DIRECT COSTS
2014
ACTUAL
2013
ACTUAL
2012
ACTUAL
$2,405,615
$2,454,030
$2,317,118
Public Information
317,458
278,984
292,437
Cooperation Professional Community
293,778
333,085
339,318
Treatment Facilities
116,721
129,222
141,388
Corrections
307,372
301,537
257,061
Overseas Services (including Literature Assistance)
399,579
479,074
440,172
International Convention
262,917
0
0
General Service Conference
796,593
906,376
774,900
Regional Forums
439,697
459,213
465,902
Archives
675,285
651,169
573,894
Trustee/Director Activities
369,353
401,422
412,391
World Service Meeting
158,569
0
212,502
3,182,273
3,113,470
3,027,048
9,725,210
9,507,582
9,254,131
217,628
2.29%
253,451
2.74%
506,993
5.80%
Group Services
Supporting Services (Technology, Finance, etc.)
Total
Increase over prior year
% increase over prior
13
G.S.O. SERVICE EXPENSES 2014
$1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
Archives
Regional
Forums
Conference
International
Convention
Overseas
Corrections
Treatment/
Special
Needs
CPC
P.I.
$0
14
GROUP SERVICE ACTIVITIES—FULLY ABSORBED
2014
Actual
2013
Actual
2012
Actual
$3,575,627
$3,648,966
$3,437,763
Public Information
471,859
414,829
435,022
Cooperation with the Professional Community
436,662
495,274
504,762
Treatment Facilities
173,491
192,144
210,326
Corrections
456,869
448,363
382,397
Overseas Services (including Literature Assistance)
593,922
712,348
654,789
International Convention
390,791
-
-
1,184,031
1,347,715
1,152,723
653,551
682,816
693,064
1,003,721
968,241
853,710
Trustees/Director Activities
548,993
596,886
613,463
WSM
235,692
-
316,112
-
-
-
9,725,210
9,507,582
9,254,131
Group Services
General Service Conference
Regional Forums
Archives
Supporting Services—Allocated out
Total
15
GROUP SERVICE ACTIVITIES—FULLY ALLOCATED
2014
2013
2012
$727,302
$715,044
$653,493
314,714
301,164
290,727
72,756
13,426
57,497
1,010,458
970,040
887,286
940,872
1,065,818
957,831
French Services
41,117
29,605
39,298
Spanish Services
33,623
33,582
27,776
Special Needs
98,420
166,402
231,760
336,365
353,885
292,095
3,575,627
3,648,966
3,437,763
Group Service Staff Assignment Activities
Box 459
A.A. Directories
Records & Files Depts.
Contributions, Processing, Verification and Documentation
Nominating
Total
16
GENERAL SERVICE CONFERENCE
2014
Rye, NY
2013
NYC
2012
Rye, NY
2011
NYC
Hotel Rooms
220,808
298,441
218,263
234,481
Meals
262,391
328,502
218,977
319,343
Other Direct Costs
260,273
241,007
251,568
250,161
743,472
867,950
688,808
803,985
(148,800)
(148,800)
(111,600)
(111,600)
(98,999)
(139,931)
(116,568)
(132,004)
(247,799)
(288,731)
(228,168)
(243,604)
Net Direct Costs
495,673
579,219
460,640
560,381
Operating Expenses-Salaries, rent. Etc.
300,920
327,157
314,260
320,937
Direct Costs
796,593
906,376
774,900
881,318
Overhead Allocations
387,438
441,339
377,823
458,754
1,184,031
1,347,715
1,152,723
1,340,071
Total
Less-Delegate Contributions
Areas Contributions
Total Contributions
Total
There are 93 delegates and 39 Conference Members.
17
GENERAL SERVICE OFFICE
NUMBER OF EMPLOYEES
Records/Files
5
A.A. Support Services
16
Archives
6
Publishing
10
Inventory Control
3
Order Entry
4
Mail & Shipping
5
Contributions
4
Human Resources
2
Finance
8
Staff & Administration
13
Information Services
2
Office Services
3
Total
81
18
PERCENTAGE OF SERVICES SUPPORTED
BY CONTRIBUTIONS
2014
2013
2012
$6,898,068
$6,906,371
$6,557,608
Services
9,725,210
9,507,782
9,254,131
Shortfall
2,827,142
2,601,411
2,696,523
70.9%
72.6%
70.9%
Contributions
Percentage of Services Supported by
Contributions
19
PERCENTAGE OF SERVICES SUPPORTED BY
CONTRIBUTIONS
78.00%
76.00%
74.00%
72.00%
70.00%
68.00%
66.00%
Percentage of Services Supported by Contributions
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
62.00%
2000
64.00%
20
MEMBER SERVICES & STATISTICS
2014
Actual
2013
Actual
2012 Actual
1,373,497
1,389,602
1,388,727
Cost of Service per Member
$7.08
$6.84
$6.66
Self Support Contributions per Member
$5.02
$4.97
$4.72
Cost of Service NOT covered by Contributions
$2.06
$1.87
$1.94
65,222
64,694
64,414
Cost of Service per Group
$149.11
$146.96
$143.67
Self Support contributions per Group
$105.76
$106.75
$101.80
Cost of Service NOT covered by Contributions
$43.35
$40.21
$41.87
Percentage of Groups Contributing
41.6%
42.5%
42.4%
Number of Groups that Contributed
27,103
27,841
27,332
$254.51
$248.06
$239.92
Number of Members
Number of Groups
Self Support contributions of Groups that contributed
21
RECONCILATION OF EXPENSES
2014
2013
$25,354,689
$22,464,488
8,017,434
5,584,936
17,337,255
16,879,552
Less - A.A.W.S. publishing
5,690,604
5,477,081
Grapevine & La Viña operating
1,921,441
1,894,889
Total
7,612,045
7,371,970
Cost of Services Provided
9,725,210
9,507,582
Total Costs and Expenses
Less - Cost of Literature Distributed
Recurring Operating Expenses¹
¹Amount of recurring operating expenses used in determining Reserve Fund coverage ratio.
22
G.S.O.’s TWO BASIC FUNCTIONS
• Publishing
• Services on Behalf of the G.S.B.
Group Records
23
A.A.W.S. PUBLISHING STATEMENT OF ACTIVITY
2014
ACTUAL
2013
ACTUAL
INCREASE
(DECREASE)
$17,128,071
$12,841,973
$4,286,098
255,791
237,254
18,537
Interest earned
391
390
1
Net Sales – Literature
16,872,671
12,605,109
4,267,562
Cost of Literature sold
4,928,491
2,990,081
1,938,410
Direct Shipping and Warehousing
2,049,813
1,505,296
544,517
Gross Profit
9,894,367
8,109,732
1,784,635
58.6%
64.3%
Program Expenses
3,316,218
3,200,822
115,396
Supporting Expenses
2,374,386
2,276,259
98,127
5,690,604
5,477,081
213,523
4,203,763
2,632,651
1,571,112
Gross Sales
Less Discounts allowed
Gross Profit Percentage
Total Expenses
Excess of Revenue Over Expenses
24
RECONCILIATION OF GROSS
PUBLISHING REVENUE
2013 Gross Publishing Revenue
$12,841,973
75th Anniversary Book
1,888,880
Estimated impact of 3rd Quarter bulk purchases of all literature prior
to October 1st price increase
2,000,000
Incremental 2014 Sales Activity
2014 Gross Publishing Revenue
397,218
$17,128,071
25
SUMMARY - 75TH ANNIVERSARY BOOK
 The printing of the 75th Anniversary Commemorative Edition
reflects the group conscience and Advisory Action of the 63rd
General Service Conference and celebrates the history and
message in our Big Book.
 The 75th Anniversary Commemorative Edition has most
importantly provided us with the opportunity to share our history
and excitement for the message of A.A. as was experienced and
shared by our founding members.
 The write-off in 2014 of the 75th Anniversary Commemorative
Edition was done in accordance with good accounting practices
and is being reported to the Fellowship.
26
75TH ANNIVERSARY
BIG BOOK–2014
177,888 Books Sold: Gross Revenues
$1,888,880
Costs of Books sold & shipping
904,032
Gross Profit
984,848
Early reorder created an overstock situation & required an
Accounting write-off of 125,000 Books
823,152
Net Profit on 75th Anniversary Book
161,696
 40,000 Books on hand are budgeted and expected to be sold in 2015
 125,000 Books were written-off for Accounting purposes, but remain in physical
inventory and are available to be sold.
27
KEY ACTIONS
Restored the price of the Big Book in July 2004 by
raising the price by $1.
Announced increases in certain book prices and
handling charges effective July 1, 2005.
Price increases July 2009 and October 2014 for
long-term fiscal health.
28
BIG BOOK PRICING
Original Price
2015 Inflation
Adjusted Price
1939
$3.50
$58.84
1955
$4.50
$39.24
1976
$5.65
$23.22
2001
$6.00
$7.92
Year Published
First
Second
Third
Fourth
29
A.A.W.S. LITERATURE TITLES
2014 Units
2014
2013 Units
2013
1,308,2393
$9,240,7143
972,903
$6,067,659
12 Steps & 12
Traditions
437,245
2,760,699
371,489
2,269,993
Daily Reflections
170,520
1,290,515
152,073
1,119,946
Living Sober
153,610
590,274
140,047
524,876
All others
154,547
3,245,869
152,915
2,859,499
2,224,161
17,128,071
1,789,427
12,841,973
A.A. Big Books1
Total2
1. English –USA/Canada only – 68 translations and 13 translations pending.
2. A.A.W.S. has published literature in 87 languages.
3. Includes 75th Anniversary Edition
30
0
*Excludes 75
th
200
887
948
973
2012
2013
2014
946
2011
2010
2009
1130
1114
2008
1064
1297
1220
1202
1202
971
1008
2007
2006
2005
2004
2003
1171
1200
2002
897
931
1017
1400
2001
2000
870
400
1999
600
865
800
1998
1997
960
1000
1996
1995
BIG BOOK UNIT SALES: 1995—2014
*
Anniversary Edition
31
A.A.W.S. PUBLISHING STATEMENT OF ACTIVITY
2014
ACTUAL
2014
BUDGET
INCREASE
(DECREASE)
$17,128,071
14,976,000
$2,152,071
255,791
270,000
(14,209)
Interest earned
391
390
1
Net Sales – Literature
16,872,671
14,706,390
2,166,281
Cost of Literature sold
4,928,491
3,542,370
1,386,121
Direct Shipping and Warehousing
2,049,813
1,940,070
109,743
Gross Profit
9,894,367
9,223,950
670,417
58.6%
62.7%
Program Expenses
3,316,218
3,446,156
(129,938)
Supporting Expenses
2,374,386
2,375,915
(1,529)
5,690,604
5,822,071
(131,467)
4,203,763
3,401,879
801,884
Gross Sales
Less Discounts allowed
Gross Profit Percentage
Total Expenses
Excess of Revenue Over Expenses
32
GENERAL SERVICE BOARD
FINANCIAL SUMMARY OF OPERATIONS 12-31-14
G.S.O.
GENERAL
FUND
THE
A.A.W.S.
PUBLISHING
THE
A.A.
GRAPEVINE
LA VIÑA
2014
ACTUAL
2013
ACTUAL
REVENUE
Net Sales
Contributions
Interest
TOTAL REVENUE
$16,872,280
$3,012,463
$134,809
6,898,068
$20,019,552
$15,751,328
6,898,068
6,906,371
7,526
11,004
35
391
7,100
6,898,103
16,872,671
3,019,563
134,809
26,925,146
22,668,703
4,889,864
383,569
31,672
5,305,105
3,397,968
38,627
27,840
EXPENSES
Printing
Royalties
38,627
Shipping & Warehouse
2,049,813
590,530
33,359
2,673,702
2,159,128
201,804
10,949,177
10,256,194
6,397,078
6,623,358
Program Expenses
6,316,635
3,316,218
1,105,520
Supporting Services
3,408,575
2,374,386
614,117
TOTAL EXPENSES
9,725,210
12,668,908
2,693,736
266,835
25,354,689
22,464,488
(2,827,107)
4,203,763
325,827
(132,026)
1,570,457
204,215
NET INCOME (LOSS) OPERATIONS
$1,376,656
33
A.A.W.S. & G.S.O. ANNUAL OPERATING RESULTS
$1,500,000
$1,376,656
$1,273,560
$1,255,289
$1,018,577
$976,170
$1,000,000
$817,947
$657,884
$500,000
$152,445
$31,554
$0
($117,291)
($275,365)
($312,171)
($500,000)
($645,160)
($1,000,000)
2002
2003
2004
2005
2006
2007
2008
2009
Fiscal Year Ended Dec 31. . .
2010
2011
2012
2013
2014
34
A.A.W.S. PUBLISHING STATEMENT OF ACTIVITY
2014
ACTUAL
2015
BUDGET
INCREASE
(DECREASE)
$17,128,071
14,820,000
(2,308,071)
255,791
250,000
(5,791)
Interest earned
391
400
9
Net Sales – Literature
16,872,671
14,570,400
(2,302,271)
Cost of Literature sold
4,928,491
3,066,700
(1,861,791)
Direct Shipping and Warehousing
2,049,813
1,866,550
(183,263)
Gross Profit
9,894,367
9,637,150
(257,217)
58.6%
66.1%
0
Program Expenses
3,316,218
3,536,765
220,547
Supporting Expenses
2,374,386
2,532,296
157,910
5,690,604
6,069,061
378,457
4,203,763
3,568,089
(635,674)
Gross Sales
Less Discounts allowed
Gross Profit Percentage
Total Expenses
Excess of Revenue Over Expenses
35
36
AA GRAPEVINE ANNUAL OPERATING RESULTS
$400,000
$325,827
$315,205
$300,000
$257,003
$200,000
$60,945
$100,000
$44,198
$5,366
$22,840
$0
2002
($100,000)
($200,000)
2003
($11,797)
2004
2005
2006
($48,873)
2007
2008
2009
2010
2011
2012
2013
2014
($132,594)
($25,047)
($138,456)
($300,000)
($400,000)
($399,037)
($500,000)
Grapevine
Operating Results
37
AA GRAPEVINE CIRCULATION: 1998-2014
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Print Circulation
38
AA GRAPEVINE‒STATEMENTS OF ACTIVITIES
AVERAGE CIRCULATION
74,000
77,126
(3,126)
Online
5,262
5,175
87
2014
ACTUAL
2013
ACTUAL
INCREASE
(DECREASE)
$2,230,375
$2,242,363
($11,988)
701,314
764,674
(63,360)
1,529,061
1,477,689
51,372
782,088
776,976
5,112
272,785
261,149
11,636
509,303
515,827
(6,524)
2,038,364
1,993,516
44,848
Editorial Costs
646,383
633,798
12,585
Circulation and Business
898,702
904,466
(5,764)
General and Administrative
174,552
150,547
24,005
1,719,637
1,688,811
30,826
7,100
10,500
(3,400)
325,827
315,205
10,622
Magazine Income
Direct Costs: Magazine
Gross Profit on Magazine
Other Publishing Income
Costs of Goods and Delivery
Gross Profit on Other Publishing Items
Total Gross Profit
COSTS AND EXPENSES
Total Costs and Expenses
Interest Income
Excess of Revenue over Expenses
39
AA GRAPEVINE—STATEMENTS OF ACTIVITIES
AVERAGE CIRCULATION
74,000
73,401
599
Online
5,262
4,561
701
2014
ACTUAL
2014
BUGDET
INCREASE
(DECREASE)
$2,230,375
$2,132,851
$97,524
701,314
750,733
(49,419)
1,529,061
1,382,118
146,943
782,088
787,560
5,472
272,785
261,556
(11,229)
509,303
526,004
(16,701)
2,038,364
1,908,122
130,242
Editorial Costs
646,383
687,117
(40,734)
Circulation and Business
898,702
926,286
(27,584)
General and Administrative
174,552
207,291
(32,739)
1,719,637
1,820,694
(101,057)
7,100
10,813
(3,713)
325,827
98,241
227,586
Magazine Income
Direct Costs: Magazine
Gross Profit on Magazine
Other Publishing Income
Costs of Goods and Delivery
Gross Profit on Other Publishing Items
Total Gross Profit
COSTS AND EXPENSES
Total Costs and Expenses
Interest Income
Excess of Revenue over Expenses
40
GRAPEVINE OTHER PUBLISHING GROSS REVENUE
Titles
2014
2013
2012
$109,678
$123,399
$ 76,116
Emotional Sobriety - Vol. I & II
84,010
87,005
95,414
One on One
35,884
73,483
-
No Matter What
29,152
57,067
-
Grapevine Daily Quote
81,978
-
-
Sober & Out
31,759
-
-
En Tate A Tete
34,433
-
-
Language of The Heart – all languages
All others1
Total
1
375,194
436,022
533,780
782,088
776,976
705,310
2014, 2013 and 2012 include $29,419, $32,734 and $24,150 of sales of E-books, respectively.
41
FIVE YEAR SUMMARY OF GRAPEVINE REVENUES
2014
2013
2012
2011
2010
Print
74,000
77,126
83,263
90,493
93,493
Online
5,262
5,175
5,583
79,262
82,301
88,846
90,493
93,494
Average Circulation
Total
Gross Profit on:
Magazine
Other publishing items
Total Gross Profit
% Other Publishing
Income to Total
1,529,061
509,303
2,038,364
25.0%
1,477,689 1,525,247
515,827
423,688
1,993,516 1,948,915
25.9%
21.7%
1,472,411 1,245,532
385,475
535,297
1,857,886 1,780,829
20.7%
30.1%
42
AA GRAPEVINE‒STATEMENTS OF ACTIVITIES
AVERAGE CIRCULATION
74,000
69,632
(4,368)
Online
5,262
5,368
106
2014
ACTUAL
2015
BUGDET
INCREASE
(DECREASE)
$2,230,375
$2,113,375
($117,000)
701,314
680,761
(20,553)
1,529,061
1,432,614
(96,447)
782,088
734,373
(47,715)
272,785
228,560
(44,225)
509,303
505,813
(3,490)
2,038,364
1,938,427
(99,937)
Editorial Costs
646,383
773,370
126,987
Circulation and Business
898,702
957,360
58,658
General and Administrative
174,552
230,503
55,951
1,719,637
1,961,233
241,596
7,100
8,200
(1,100)
325,827
(14,606)
(340,433)
Magazine Income
Direct Costs: Magazine
Gross Profit on Magazine
Other Publishing Income
Costs of Goods and Delivery
Gross Profit on Other Publishing Items
Total Gross Profit
COSTS AND EXPENSES
Total Costs and Expenses
Interest Income
Excess of Revenue over Expenses
43
LA VIÑA CIRCULATION 1998-2014
12,000
10,000
8,000
6,000
4,000
2,000
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
44
LA VIÑA—STATEMENTS
OF
ACTIVITIES
10,380
10,145
9,160
Average Circulation
2014
ACTUAL
2013
ACTUAL
ACTUAL
$111,940
$106,960
$96,892
9,946
9,590
10,378
121,886
116,550
107,270
12,923
10,721
16,210
134,809
127,271
123,480
Total Direct Costs
65,031
63,737
58,015
Gross Profit
69,778
63,534
65,465
122,859
130,546
113,828
73,337
73,022
65,610
5,608
2,510
1,847
201,804
206,078
181,285
(132,026)
132,026
(142,544)
142,544
(115,820)
115,820
0
0
0
2012
INCOME
Subscription Income
Back Issues
Magazine Income
Income from Related Items
Total La Viña Income
COSTS AND EXPENSES
Editorial Costs
Circulation and Business
General and Administrative
Total Costs and Expenses
Shortfall between Revenue and Expenses
Support from GSB General Fund
NET
45
LA VIÑA—SHORTFALL BETWEEN REVENUE AND EXPENSES
$0
($20,000)
($40,000)
($60,000)
($80,000)
($100,000)
($120,000)
($140,000)
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
($160,000)
46
PARAPHRASING THE NIKE SAYING –
JUST BUY IT!
SUBSCRIBE TO:
GV & LA VIÑA
GV
La Viña
Annual Subscription Price
$28.97
$11.97
Number of Issues Per Year
12
6
$2.41
$1.99
Cost per Issue
Cost per day for your sobriety
$0.08
$0.03
47
TRANSFER FROM THE RESERVE FUND
TO THE PENSION FUND
$1.5 million
Reserve Fund
Pension Fund
48
TRANSFER FROM THE RESERVE FUND
TO THE PENSION FUND
 Saved both operating corporations significant expense dollars by
lowering their aggregate cash contributions from $2,105,000 in 2013
to $1,690,000 in 2014.
 A.A.W.S.: ~$373,000
 AAGV: ~$42,000
 2015 pension costs budgeted to be $1.5 million
 Lowered the Reserve Fund ratio to a projected 9.4 months, but still
within approved limits
49
TRANSFER FROM THE RESERVE FUND
TO THE PENSION FUND
Pension Liability
2012: $29.9M
2013: $27.7M
2014: $36.1M
Pension Assets
Pension Fund
2012: $19.5M
2013: $24.1M
2014: $27.8M
50
PENSION PLAN LIABILITY
 Pension Protection Act (PPA)
 Moving Ahead for Progress in the 21st Century Act
(MAP-21)
 Minimum Funding Requirements
 ASC 715 or Statement of Financial Accounting
Standards No. 87—Accounting for Post-Retirement
Benefits, as amended
 Discount rate declined 4.76% to 3.89% in 2014
51
PENSION PLAN LIABILITY
2014
2013
2012
Actives
84
82
84
Vested & Terminated
41
43
45
Retirees & Beneficiaries
74
70
68
199
195
197
$73,100
$70,700
$70,200
Benefits Paid
1,189,353
1,086,724
1,014,838
Cash Pension Costs Charged to Operating
Expense
1,690,000
2,105,000
1,812,250
Total
Average Payroll
Estimated benefits over next 5 years:
2015 - 1,577,133
2016 - 1,632,436
2017 - 1,622,891
2018 - 1,656,829
2019 - 1,723,669
52
PROJECTED PENSION BENEFIT OBLIGATION
2014
2013
2012
$27,658,491
$29,874,320
$27,189,259
2,023,901
1,925,108
1,985,114
(1,189,353)
(1,086,724)
(1,014,838)
7,561,097
(3,054,213)
1,714,785
Projected Benefit Obligation - 12/31
36,054,136
27,658,491
29,874,320
Plan Assets - 1 /1
24,088,753
19,505,597
16,895,502
Return on Plan Assets
1,758,870
3,564,880
1,812,683
Employer Contributions
3,190,1001
2,105,000
1,812,250
Benefits Paid
(1,189,353)
(1,086,724)
(1,014,838)
Plan Assets - 12/31
27,848,370
24,088,753
19,505,597
Net - Unfunded Status
1
2014 includes the $1.5 million transfer
from Reserve Fund. 2015 budget is $1.5
million.
(8,205,766)
(3,569,738)
(10,368,723)
Projected Benefit Obligation - 1/1
Service & Interest Costs
Benefits Paid
Actuarial (Gains)/Losses
53
A.A. PENSION AND POSTRETIREMENT MEDICAL
Obligations1
Funded2
Unfunded3
12/31/2014
12/31/2013
12/31/2014
12/31/2013
12/31/2014
12/31/2013
Pension
$36.1m
$27.7m
$27.8m
$24.1m
$8.3m
$3.6m
Medical
7.3m
5.7m
3.1m
2.7m
4.2m
3.0m
43.4m
33.4m
30.9m
26.8m
12.5m
6.6m
Note:
1
Discount rate decreased from 4.76% in 2013 to 3.89% in 2014. This decrease resulted in the combined
Obligations increasing by $10.0m from 2013 to 2014.
2
From 2013 to 2014, the combined Funded Status increased by $4.1m.
3
From 2013 to 2014, the combined Unfunded Status decreased by $5.9m
54
RESERVE FUND
55
RESERVE FUND RATIO
Number of months that
the Reserve Fund
would cover
operating expenses
56
G
F
E
L
GENERAL SERVICE OFFICE
S
B
L
R
O
E
W
S
H
I
P
Contributions
Literature
G.S.O
Cash Flow Excess
Special Projects
Budget Shortfall
S
E
R
V
E
F
U
N
D
57
G
F
E
GRAPEVINE
O
W
S
H
I
P
B
R
L
L
S
Subscriptions
Other Publishing
G.V.
Cash Flow Excess
Special Projects
Budget Shortfall
E
S
E
R
V
E
F
U
N
D
58
RESERVE FUND: 1989—2014
14
12.4
12
10.7
11.1
11
10
9
8.4
8
11.9
11.6
7.5
8.1
9
9
11.3
11
9.6
9.4
9.1
8.4
11.4
10.9
9.8
9.5 9.5 9.5
8.7
7.7
6
4
2
0
Number of Months
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
59
RECONCILIATION OF 2013, 2014 & 2015 RATIOS
RESERVE FUND
EXPENSES
RATIO
2013 Actual
$15,301,653
$16,879,552
10.9
2013 Pro forma Actual
14,061,6531
16,879,552
10.0
2014 Budget
14,061,653
17,993,843
9.4
2014 Actual
14,094,966
17,337,255
9.8
2014 Pro forma Actual
15,534,9662
17,337,255
10.8
2015 Budget
15,534,9662
18,627,000
10.0
2015 Budget and 11th Floor
Restructuring Project
14,234,9663
18,627,000
9.2
1
Adjusted balance includes contribution of $260,000 from GV made in early 2014 and
transfer of $1,500,000 to the Pension Plan Trust in 2014
2
Adjusted balance includes contribution of $1,200,000 from GSO and $240,000 from GV
made in early 2015
3
Adjusted balance includes above 2015 contributions (see2) and use of $1,300,000 for
11th floor restructuring
60
GENERAL SERVICE BOARD—RESERVE FUND
2015 Budget
12-31-2014
Balance available to cover
Operating Expenses
$14,234,966
$14,094,966
$15,301,653 $15,353,752 $15,296,921
Operating Expenses
$18,627,000
$17,337,255
$16,879,552 $16,228,337 $15,408,284
9.2
9.8
10.9
11.4
11.9
65,000
65,222
64,694
64,414
63,845
1,373,500
1,373,497
1,389,602
1,388,727
1,384,699
Equivalent Balance per
Group
$219.00
$216.10
$236.52
$238.36
$239.59
Equivalent Balance per
Member
$10.36
$10.26
$11.01
$11.06
$11.05
Number of months covered
Groups
Membership
12-31-2013
12-31-2012
12-31-2011
By Conference action, the “Prudent Operating Reserve” was defined as an amount equal to the preceding year’s combined operating
expenses of A.A. World Services, A.A. Grapevine and the General Fund of the General Service Board. Operating expenses include “office
and operating expenses” and do not include the Cost of Products or Manufacturing cost.
61
RESERVE FUND

Reserve Fund Balance
• December 31, 2014 - $14,094,966 – Annual earnings- $33,313
• December 31, 2013 - $15,301,653 – Annual earnings- $40,274
INVESTMENT GUIDELINES
“Minimum Requirement”
To assure the liquidity, the Reserve Fund shall contain investment instruments having maturities of
one year or less in an amount equal to the sum of (a) the unearned Grapevine subscription liability
and (b) the operating cash requirements of the service entities. This amount will be reviewed
annually by the trustees’ Finance and Budgetary Committee.
“No More Than”
The balance of the Reserve Fund shall be invested in instruments with maturities of between zero
(0) and ten (10) years, provided that at no time shall more than 50% of the principal amount of such
balance consist of investments having maturity dates of five or more years.
62
A.A. INTERNATIONAL CONVENTIONS
ATLANTA
2015
BUDGET
SAN ANTONIO
2010
TORONTO
2005
MINNEAPOLIS
2000
ATTENDANCE
50,000 EST
52,383
42,500
47,500
PRICE/PERSON
$100 - $110
$95 - $110
$85 - $95
$85 - $95
REVENUES
5,100,000
5,212,650
3,919,332
4,108,388
EXPENSES
5,020,000
4,368,105
3,958,372
3,110,804
80,000
844,545
(39,040)
997,584
NET
63
GENERAL SERVICE BOARD
FINANCIAL SUMMARY OF OPERATIONS 12-31-14
G.S.O.
GENERAL
FUND
THE
A.A.W.S.
PUBLISHING
THE
A.A.
GRAPEVINE
LA VIÑA
2014
ACTUAL
2013
ACTUAL
REVENUE
Net Sales
Contributions
$16,872,280
$134,809
6,898,068
Interest
TOTAL REVENUE
$3,012,463
$20,019,552
$15,751,328
6,898,068
6,906,371
7,526
11,004
35
391
7,100
6,898,103
16,872,671
3,019,563
134,809
26,925,146
22,668,703
4,889,864
383,569
31,672
5,305,105
3,397,968
38,627
27,840
EXPENSES
Printing
Royalties
38,627
Shipping & Warehouse
2,049,813
590,530
33,359
2,673,702
2,159,128
201,804
10,940,177
10,256,194
6,397,078
6,623,358
Program Expenses
6,316,635
3,316,218
1,105,520
Supporting Services
3,408,575
2,374,386
614,117
TOTAL EXPENSES
9,725,210
12,668,908
2,693,736
266,835
25,354,689
22,464,488
(2,827,107)
4,203,763
325,827
(132,026)
1,570,457
204,215
14,094,966
17,337,255
15,301,653
16,879,552
9.8
10.9
NET INCOME (LOSS) OPERATIONS
RESERVE FUND
Reserve Fund Balance at December 31 available to cover operating expenses
Operating Expenses
Number of months Operating Expenses-approximate
*Excludes non-operating Funds: Reserve, Capital Projects, Pension, Post-Retirement Medical Benefits
64
GENERAL SERVICE BOARD 2015 SUMMARY BUDGET
G.S.O.
GENERAL
FUND
THE
A.A.W.S.
PUBLISHING
THE
A.A.
GRAPEVINE
LA VIÑA
PERCENT
CHANGE
2015-2014
2015
BUDGET
2014
ACTUAL
$17,545,670
$20,019,552
-12.36%
7,000,000
6,898,068
1.48%
8,600
7,526
14.27%
REVENUE
Net Sales
Contributions
$14,570,000
$127,922
$7,000,000
Interest
TOTAL REVENUE
$2,847,748
7,000,000
400
8,200
14,570,400
2,855,948
127,922
24,554,270
26,925,146
-8.81%
3,038,700
335,744
29,960
3,404,404
5,305,105
-35.83%
28,000
38,627
-27.51%
EXPENSES
Printing
Royalties
28,000
Shipping & Warehouse
1,866,550
573,577
31,691
2,471,818
2,673,702
-7.55%
225,728
11,778,421
10,940,177
7.66%
6,848,564
6,397,078
7.06%
Program Expenses
6,741,127
3,536,765
1,274,801
Supporting Services
3,629,837
2,532,296
686,431
TOTAL EXPENSES
10,370,964
11,002,311
2,870,553
287,379
24,531,207
25,354,689
-3.25%
NET INCOME (LOSS)
OPERATIONS
(3,370,964)
3,568,089
(14,605)
(159,457)
23,063
1,570,457
-98.53%
$14,234,966
$18,627,000
14,094,966
17,337,255
9.2
9.8
RESERVE FUND
Reserve Fund Balance at December 31 available to cover operating expenses
Operating Expenses
Number of months Operating Expenses-approximate
*Excludes non-operating Funds: Reserve, Capital Projects, Pension, Post-Retirement Medical Benefits
65
TRENDS
G.S.O./A.A.W.S.
Membership levels are flat
Contributions levels are flat
Literature sales show slow to no growth
Expenses continue to grow slowly – 2% - 3% per year
GRAPEVINE
Subscriptions continue to decline 4% - 5% per year
Expenses continue to grow slowly – 2% - 3% per year
2015 G.S.O., Grapevine and La Viña combined budgeted
profit is $23,000, following years are minimal profits or more
likely losses
66
GSB FEASIBILITY STUDY
The General Service Board of Alcoholics Anonymous
undertake a comprehensive study of the current business
models, corporate structure and long-term sustainability of
the GSB and both operating Corporations, keeping in mind
the Spiritual Basis of Alcoholics Anonymous.
Motion approved on November 2, 2014.
67
SELF-SUPPORT OF THE WORLD SERVICES OF ALCOHOLICS ANONYMOUS
The A.A. spiritual principle of self-support enables us to pursue our primary purpose
of carrying the message to the still-suffering alcoholic with a shared sense of
responsibility for our lifesaving work and without interference or financial dependence
on outsiders. From our Fellowship's earliest days, the expenses of the General Service
Office, and the world services provided by it, have exceeded the amount derived from
contributions of A.A. groups and members. As a result, providing these needed
services has necessarily been supported in part by income from the sale of A.A.
literature. It is the policy of the General Service Board that income from literature sales
should only be in amounts required to allow continued provision of vitally needed
services and maintenance of a Reserve Fund. We hope that the day will come when
A.A. groups and members, through their contributions, will be able to fund fully the
services provided by the General Service Office. If that is achieved, revenues from
literature sales will only be needed in amounts necessary to cover the actual costs
associated with literature production and to maintain a Reserve Fund.
Approved by the General Service Board February 3, 2014
68
THANK YOU
 All of the employees of both AAWS and Grapevine, especially
Phyllis H., Don M., Ami B. and Eugene O’B..
 Our Independent Auditors – Owen J. Flanagan & Company, LLP
************
Any questions – Please feel free to contact me at:
david.morris.cpa@gmail.com
69