Sierra Club Financial Report
Pursuant to provisions of sections 6321 and 6322 of the California Corporations Code, the following information is furnished as an annual report:
The Club's financial statements for the fiscal years ended December 31, 2002, and December 31, 2001, together with the report of KPMG LLP, independent auditors, are available on request from Sierra Club headquarters at 85 Second Street, San Francisco, California 94105-3441.
The membership list of the Sierra Club is on file at the Club's headquarters at 85 Second Street, San Francisco, California 94105-3441.
There are no transactions to disclose that constitute a conflict of interest involving directors or officers; no member has voting power of 10% or more.
The books of account and minutes of meetings of the Board of Directors are available for inspection by members on written request at the Club's headquarters at 85 Second Street, San Francisco, California 94105-3441.
INDEPENDENT AUDITORS' REPORT
THE BOARD OF DIRECTORS SIERRA CLUB:
We have audited the accompanying balance sheets of the Sierra Club National Entity (the Club) as of December 31, 2002 and 2001, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Club's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as weft as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Sierra Club National Entity as of December 31, 2002 and 2001, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
San Francisco, April 25, 2003
The fiscal year 2002 marks the Sierra Club's eighth consecutive year of achieving a positive contribution to net worth. The Club's total revenues were $83,993,600 with total expenses and losses of $83,369,700, and at year-end 2002, the Sierra Club had 742,600 members. The positive financial results are significant because they occurred despite losses in the investment market and rising insurance premium expenses.
In 2002, allocations to chapter programs were $5,038,100 computed with $4,415,200 in 2001. The increase was a result of improved fundraising performance and membership recruitment as well as increases in specific program expenses to support the chapters In 2003, however, our grassroots will be presented with some new challenges. Faced with the prospect of reducing Club programs to match budget projections, the Board of Directors chose to allocate 45 percent of the budgeted funding to chapters in the form of c(3) charitable funds in 2003. Previously all chapter allocations were funded with c(4) non-charitable funds.
We can look back at 2002 with pride for all that was accomplished by the Sierra Club. Despite an environmentally hostile administration and a country preoccupied with the threat of war and terrorism, some key threats to the environment were staved off. Among the results of these campaigns were the Senate's vote not to open the Arctic Refuge to oil drilling and a three-judge panel's upholding of an earlier ruling that halted construction of Utah's Legacy Highway. …