Despite another year of positive operating incomes for six of the seven Corp services, investment losses have led to an over 50 percent drop in the student-run corporation’s net income from fiscal year 2007 to fiscal year 2008.

According to Jesse Scharff (COL ’09), The Corp’s chief executive officer, The Corp’s net income in this last fiscal year, which ran from June 2007 to June 2008, totaled $64,757.83, down 53.2 percent from the previous fiscal year.

Despite the decrease in net income, the operating income, which consists of revenues minus cost of goods sold and operating expenses and does not include investment returns, increased 187.3 percent from last year’s mark of $34,804.65 to $100,004.62.

The difference lies in The Corp’s Merrill Lynch investment account, through which the organization invests money in both stocks and bonds. Chief Financial Officer Kevin Lynch (COL ’09) said that The Corp’s dip in net income stems from their losses from the investment fund, not the individual Corp services. Instead, the operating income reflects the positive fiscal growth of the services without taking into account The Corp’s investment losses.

The Corp has lost over $37,000 this past fiscal year in the account, compared to 2007 when the same account earned over $100,000.

“Net income looks significantly worse due to investments, but in terms of the actual services for the students, we’re doing quite well,” Lynch said. “For this reason, net income this year is not the most accurate measurement of our performance.”

Five of the services had positive net incomes, as Uncommon Grounds and the Book Co-op were the only two with negative bottom lines.

Vital Vittles and Student Storage were the only two services to post positive net income growth over the past fiscal year.

However, six of the seven services posted a positive operating income for the last fiscal year. The Book Co-op was the only service to post a loss in operating income, $26,641.98 after operating expenses.

The positive figures for the other six services were partially due to an increase in operating efficiency, Lynch said. To augment operating efficiency, the Corp adopted a Point-of-Sale accounting regiment, which automatically computes the day’s earnings for review, as opposed to the previous system in which an individual would have to add up the numbers of a scroll calculator.

In addition, The Corp terminated operations of Movie Mayhem in the first half of fiscal year 2008. In its place, the Corp receives a portion of the revenues collected from the Redbox DVD rental stations on campus provided through an auxiliary service provider.

“While wages have actually gone up since last year, we have managed to cut down on hours worked using POS and by better defining hours worked by Corp employees, lowering wage expenses in the end,” he said.

Due to investment losses, The Corp’s philanthropic efforts have now been scaled back a bit to $35,000 for this current year, according to Scharff. In the last fiscal year, The Corp gave a record $44,724 to students and student organizations through scholarships, grants and donations.

However, Lynch said the upper management of the organization at the end of the last fiscal year boosted The Corp Philanthropy Committee – which previously only oversaw $10,000 of philanthropic funds.

“There have been guidelines set, and [CPC] pretty much has control of all the funds – if they wanted to deviate from these guidelines, they could,” Lynch said.

In addition to their increased funding control, a new position is being added to the CPC this year.

“We’re opening a spot to someone who is not employed by The Corp to give an outside perspective on where money should be allocated,” Scharff said.

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