April 6 th , 2021 TO: NIGA Executive Officers FR: Executive Director RE: NIGA FY 2020 Pre-Audit and 2021 Fiscal Year Outlook ******************* CONFIDENTIAL*********************************** Dear NIGA Officers: This is an update in advance of NIGA’s 2020 Audit and the current outlook for FY 2021. In summary, NIGA finished FY 2020 with a loss of $2.7 million. This major loss is a reflection that all Trade Show revenues received in 2020 have been moved to a 2021 “deferred revenue” and liability account. Because all the 2020 Tradeshow income is deferred to 2021, NIGA will have a distressed income statement and audit for FY 2020. However, having a distressed balance sheet for 2020 has allowed NIGA to qualify for more PPP money under the new Covid Relief Act, which will greatly assist in stretching our operating dollars for 2021. NIGA has already received one tranche of PPP money and will apply for another round before May 31 st . NIGA can expect a “Letter of Concern” from WipFli Auditors at the conclusion of this week’s audit. For FY 2021, further detailed below, NIGA will be out of operating cash by this September. The FY 2021 current outlook includes contractor budget cuts of 50% which has yet to be implemented, but may soon be a necessity. The goal is to generate additional income at the July Tradeshow and Associate Membership Dues. The Deputy Executive Director and I are pursuing loans from our mortgage lender and/or our tradeshow company Clarion LLC. NIGA Fiscal Outlook FY 2021 The Board of Directors last year adopted three (3) different FY 2021 Budgets depending on how long the pandemic lasts into 2021. On December 1 st , the San Diego Convention Center notified NIGA that the California Governor’s office had cancelled all large gatherings in the State through April 2021. Therefore, the Deputy Director and I are proceeding with the Approved NIGA 2021 Budget that forecast $0 (zero) Tradeshow income. Currently NIGA has about $1.5 million in cash on hand to cover ‘essential’ and limited contractor costs through the first part of September 2021. Absent a loan/grant or another major source of revenue collection, NIGA will have trouble making it to the end of the year financially.
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