Treasurer's Report (2006)

Econometrica, Vol. 75, No. 1 (January, 2007), 299–304





THE 2005 ACCOUNTS of the Econometric Society show a surplus of $158,565. This surplus is higher than the estimate at this time last year (Table III, Line G) because revenues were $64,869 higher and expenses were $62,042 lower than expected. The former is mainly explained by the smaller reduction in Econo- metrica circulation revenues (Table II, Line A), while the latter is mainly ex- plained by the smaller than budgeted amount spent on travel grants for the 2005 World Congress (Table III, Line E4, and Table VII, Line B1). The net worth of the Society on 12/31/2005 reached $1,046,755 (Table I, Line C). Con- sequently, the ratio of net worth to adjusted total revenue (total revenue minus capital gains) on 12/31/2005 was 85 percent, a figure slightly higher than the target of 80 percent agreed by the Executive Committee in August 2004.

Table I shows the balance sheets of the Society for the years 2001–2005, dis- tinguishing between unrestricted assets and liabilities, whose difference gives the Society’s net worth, and four restricted accounts: The World Congress Fund, which is a purely bookkeeping entry that serves to smooth the expenses every five years on travel grants to the World Congress, the Jacob Marschak Fund, devoted to support the Marschak lectures at regional meetings outside Europe and North America, and the Far Eastern and Latin American Funds, which are held in custody for the convenience of the Far Eastern and Latin American regions. Tables IV, V, VI, and VII show the movements in the re- stricted accounts for the years 2001–2005. It should be noted that the figures that correspond to the Jacob Marschak, the Far Eastern, and the Latin Amer- ican Funds have been reduced, relative to the figures in the 2005 Report of the Treasurer, by $881, $4,988, and $1,005, respectively, to correct some minor past errors. These corrections imply an increase of $6,874 in the value of un- restricted assets (Table I, Line A) relative to the 2005 figures. Table I also cor- rects the double-billing error made by Blackwell, reducing the 2002 accounts payable figure by $52,231.

Tables II and III show the actual revenues and expenses for 2004, the esti- mated and actual revenues and expenses for 2005, and the estimated revenues and expenses for 2006 and 2007. The Econometrica circulation revenues (Ta- ble II, Line A) are expected to decline in 2006, due to the continued fall in institutional subscriptions. Other expected revenues and expenses are roughly in line with those for 2005, except for the transition expenses (Table III, Line E6) that disappear in 2007. The surpluses expected for 2006 and 2007, after allocating $80,000 each year to the World Congress Fund, are $155,000 and $230,000, respectively.

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