Fy2007 Forecast and Fy2008 Budgets

Hi Mark,

Below are the answers so your questions:

1)  Membership revenues are recognized over the term of the membership.
So when a membership is canceled after it has been recorded on the books,
the amount of revenue that has been recognized as income is considered
bad debt.
So far in 2007, Systeam  and Unisys were canceled for non
payment.
So we do allocate a small percentage into the budget for noncollectable
fees.

2) $7500 was paid to Western Illinois University  in April for work done
as requested by the LegalXML Steering Committee.
I do not have access to the file at this time, but I will follow up with
more details if necessary.  We estimated $15k for additional projects
in Fy2008.  We are asking that you review these amounts and let us know
if this amount will be sufficient or if it needs to be adjusted.

3) We budget membership renewals at 80% which has proven to be the trend
over the past few years. So these amounts are
realistic of what the MS should expect.  The carryover funds are also an
estimate until we are able to close the books for 2007.

I hope this has helped, if you have any additional questions please let
me know.
Thanks,
Cathie

Mark Ladd wrote:
> Cathie,
>
> As this is my first year as a member of the Steering Committee, I have a
> couple questions regarding the budget.  These questions reflect a lack of
> knowledge on my part, not a challenge to any of the math reflected in the
> budget.
>
> 1 - What do we define as "Bad Debt"?  It appears that we budget around $5K
> for that and incur some 'bad debt' expenses.  Just wondering what those
> might be?
>
> 2 - What was the 2007 Misc Project expense of $7500?  As a follow-up, I see
> $15K of Misc Projects in 2008.  Are there any more specifics as to what
> those projects might be?
>
> 3 - Since I don't have previous years to compare to, I'm wondering if our
> revenue projections are a bit optimistic - or does this reflect the trends
> of the past 3-5 years?
>
> Thanks for any information you can provide.
>
>
> Mark Ladd
> Addison/One, LLC
> 262-498-0850
>
> 
>
>