AE Corporate Financial Overview

The finance section provides the information for all financial matters concerning the AE Building Corporation. Included in this section are detailed budgeted versus actual reports since the year 2002, which gives analysis of the major variable and fixed expenses for AE Corporate each semester. The budgets for each year are based on the expenses actually incurred in the previous year, taking into account any expected increases in rates. A monthly report is generated at the end of each month to compare budgeted versus actually amounts and to explain any variations. A monthly scorecard is also generated each month to show how the building corporation is doing in the big scheme of things, and if we are meeting our target goals or not.

AE Corporate officers manage a checking account, 2 savings account, a money market capital account, a mortgage, and a line or credit. The house has an annual budget of roughly $50,000 per year, which consists almost entirely of house brother and chapter rent. All donations that are made to Alpha Epsilon go to corporate rather than chapter, unless otherwise specified by the donor. If there are any questions regarding any financial issues please contact the Corporate Treasurer.

Financial Snapshot of Long-Term Debt

Total Appraised Value: $841,767

Mortgage (originally established in 1969) Mortgage Amount: $102,000 (refinanced in 2001) Lender: Athens First Bank & Trust Interest Rate: 8.0% Mortgage Balance: $58,560.28 (as of 01/01/08) Current Monthly Mortgage Payment: $2,086.29 Expected Maturity: May 2009 View Mortgage Amortization Worksheet		Home Equity Line of Credit (established in 2005) Highest Balance: $10,979.51 Lender: Athens First Bank & Trust Interest Rate: floating, average about 9.10% LOC Balance: $5,462.34 (as of 01/01/08) Current Monthly LOC Payment: $100 Expected Maturity: December 2009 View LOC Amortization Worksheet

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Aggressive Debt Reduction Plan

In January 2007, the Alumni Board along with cooperation of AE corporate and chapter officers decided to put into place the agressive reduction plan (ADR), which calls for full ownership of the house by December 2009. At this time, the LOC will also be entirely paid off. Once we no longer have any more long term debt against the house, at that time we will be able to make some needed renovations or additions to the house.

This plan reallocates monies that would have normally been use for other projects and place them directly into the mortgage payment. Additionally, the majority of LOC payments have also been reallocated to the mortgage in order to fufill this plan by the expected completion date. When December 2009 rolls around, the balance of the mortgage and/or Line of Credit will be paid off by the accumulated Capital account.

Once the house is paid off, future plans include savings for a few years, and then having extensive renovations and/or expansions to the house.