Friday, February 12, 2016

Letter to the Shareholders

 Letter to the Shareholders

Table of Contents

Letter to Shareholders                                                                                     3
Financial Information                                                                                      5
            Balance Sheet                                                                                      5
            Income Statement                                                                               6
The Management Discussion & Analysis Report (MD&A)                         7
Additional Analysis                                                                                        10
References                                                                                                       12

To Our Stockholders:

General Public Consulting is in its second year and looking well.  It makes me exceptionally proud of the leadership team and of all of the dedicated interns.  We set some goals and have been able to meet them despite the tough environment of the externship.  The leadership teams and committed interns are motivated to preserve this externship opportunity into the future.  All team members pulled their own weight alongside others who were working just as hard.  The team had the drive and motivation to make changes and enhance the externship program.  General Public Consulting provides an array of services from guidance and assistance to General Public University to working with non-profit organizations in providing assistance to further their own missions.
Extensive advertising has been done to get information out to the public and to gather prospective clients.  We collaborated with General Public Radio and have our first over the air advertisement for General Public Consulting and we also have a Facebook page.  In the upcoming year General Public Consulting has plans to launch their website to further promote the Company. General Public Consulting has further promoted the program by developing and implementing; Twitter, Google Plus, LinkedIn, Podio, MailChimp, and HootSuite.  The likes and hits on these sites has increased immensely since they were implemented.
General Public Consulting has worked with all of the following companies: 101 Miles of Maine, Girl Scouts of America, Boy Scouts of America, Modest Needs, Operation Smile, Small Business Institute, CICS Irving Park Puma PTO, Canine, It’s Greek to Me, Fish for Life, and FLIPS to help them promote their programs (Income by Customer, 2014).  Prospective clients for the upcoming year include; Chinese Tire, JOPPA, and Friends at Dallas Pool Center (General Public Consulting Newsletter (c), 2014).  We are excited about our customer collaborations and have many new opportunities on the horizon.  We have been working to develop and implement the scripts for several experiential training videos (General Public Consulting Newsletter (a), 2014) .  We were able to successfully make the Small Business Institute (SBI) its own independent division who is currently researching what experimental learning other schools might have.  This research will help in the development of the Business Counselor Intern Certification (BCIC) (General Public Consulting (b), 2014).
The budget for the month of May was right on target.  The actual expenses were under the budgeted figures for this month and are expected to be for the month of June as well.  Forecasted income was only slightly under budgeted figures.  General Public Consulting is right on target of where they should be.
           General Public Consulting has set goals and priorities for the upcoming terms and know there is a lot of tough work ahead.  We are going to enter the next year with momentum and energy to focus on continued growth opportunities; excited and confident about our ability to continue improving the externship experience. 


Marley Johnson, President

 Balance Sheet General Public Consulting

As of: 07/13/2014

Current Asset
Accounts Receivable                                                                                                                                                                                                                       62,495.00
Total for Current Asset                                                   62,495.00
Owner Checking                                                                               59,284.91
  General Public Finance                                                                             109,659.50
Total for Bank                                                                  168,944.41
Total Assets                                                                    231,439.41


Current Liability
Accounts Payable                                                                 4,970.01
 ST Payable                                                                           1,583.98
Taxes Payable                                                                                22,801.78
Total for Current Liability                                             29,355.77

 Total Liabilities                                                               29,355.77

Owner Investment / Drawings                                                       78,118.20

Previous Year(s) Earnings                                          (35,710.00)
Current Year Earnings                                                159,675.44

Total equity                                                                   202,083.64
Total Liabilities and                                                     231,439.41

Income Statement

General Public Consulting
Reporting period: 01/01/2014 to 07/13/2014
Text Box: Consulting Income 337,571.50 
Total Revenue  337,571.50 

Gross Profit                                                                          337,571.50
Operating Expenses
Repairs & Maintenance                                                                 254.98
Computer -Software                                                                 1,831.88
Computer -Hosting                                                                          30.00
Software                                                                                      900.00
Website Maintenance                                                       322.55
Legal Fees                                                                                6,296.64
Insurance -General Liability                                               14,985.00
Office Supplies                                                                         3,503.90
Utilities                                                                                       6,179.80
Miscellaneous Expense                                                            1,124.78
Travel Expense                                                                         3,302.03
Marketing                                                                                      510.00
Postage                                                                                        180.00
Payroll -Salary & Wages                                                       131,408.97
Payroll-Tax                                                                                3,285.57
Advertising & Promotion                                                            3,779.96
Total Operating Expenses                                              177,896.06

Net Profit                                                                159,675.44

The Management Discussion and Analysis Report (MD&A)

Mission and Organizational Structure

The mission statement of General Public Consulting is: “to provide a wide range of services to our customers by delivering guidance and assistance to all areas of General Public University, and to support them in developing intern and externships for the students as they grow. General Public Consulting will provide the best resources for our customers while fostering an internship program that will further their skills in a business environment. In doing so, General Public Consulting will access all of the intern’s skills that they have learned in the General Public School of Business, making them better qualified to enter corporate America as a highly trained professional or become an entrepreneur. Essentially, General Public Consulting wants to deliver services to all educational areas of General Public University, to support them in developing intern and externships for the students as they grow. General Public Consulting will also work with small, not for profit, businesses to provide educational resources for the success of their futures. We want to be able to provide the best resources for our customers by using the skills of our top School of Business students, in an internship pro-gram that gives our customers quality service and our interns knowledge of developing and managing a business.” (General Public Consulting Marketing Brochure, 2014).
The Company is organized with a Human Resources Department, Finance Department and Operations Department.  Within Human Resources are the training department and the recruiting department.  The Finance Department is comprised of the auditing department, tax department, payroll department and the AP/AR department.  The Operations Department houses sales/marketing, information technology, consulting and the project management office as well as the new SBI department.

Performance Goals and Results

The Company is striving to create opportunities for students wherein they can make “real” decisions based upon their studies and learning (Cojanu, Marley, May 12, 2013). General Public Consulting will meet and exceed its projected sales of $395,000 for the year.  Currently the total revenues for the year are at $337,571.  This is well over half of the projected sales for the year.  The company set a goal to make SBI an independent division under the Operations Department and this goal has been met.  SBI is going strong and doing lots of research on other schools’ experimental learning opportunities.  This research will help lead the SBI team to reach their ultimate goal of creating a Business Counselor Intern Certification.  The Finance Department set a goal to create an LLC to do outside financial work for customers.  This goal is being met and will be in full swing within the next month or two.  Price schedules have been created for the work and the paperwork has been completed to create the LLC.  The HR department set goals to create a better on-boarding process for new interns.  They have worked diligently and created new documents and tracking forms and we are excited to say that no intern was “lost” in the last group to come in.   The recruiting department is trying many different tactics to raise the number of incoming interns to the program. 
The Company was started on July 31, 2013; financial statements show that sales were $73,500 for 2013. Projected sales for 2014 are $395,000 (General Public Consulting, 2013).  Net profit is currently $159,675.  Expenses are being kept to a minimum and more and more clients are incoming.  With the Finance Department branching out to take on accounting customers the profit will increase even more than originally projected.  Bringing SBI’s Certification program online will increase revenues as well. 
      Systems, Controls and Legal Compliance
As the Company is operating with interns fresh with learning they are meeting legal compliance by adhering to GAAP.  The auditing department has been able to conduct audits on all of the departments to ensure compliance with GAAP.  They are happy to say that all of the departments are meeting and/or exceeding expectations of compliance.  There is a strict chain of command that allows for communication but also allows for control of information.  The IT department has diligently been working to protect General Public Consulting’s information and has standards in place to restrict access once an intern has graduated out of the class. 
      Future Effects, Uncertainties, Risks
It is expected that certain risks may affect the future situation of the company such as not being able to represent some clients and economic factors (General Public Consulting, 2013).  Another major factor affecting the future of General Public Consulting is recruitment numbers.  The Finance Department is made up of accounting students and while several terms met with a high number of interns coming into the department, the last term saw a very low number of accounting student interns to operate and run the Finance Department. 
This program is innovative and creative and it teaches students while they are actually getting to “work” and also have some fun.  The program allows for personal connections to be made that might otherwise not have been made.  The ultimate goal of the program is to make the students ready to enter the workforce.  Having the internship listed on a student’s resume has already led to students getting three interviews in one week once they had added the internship experience to their resume.

Additional Analysis

                             With the assistance of this spreadsheet which was created by Jerry Sherlock, Professor of Financial Statement Analysis, I was able to predict what kind of income General Public Consulting might have for the next five years.  If expenses remain at 52% of the income and the tax rate is 25% for all years with just a very small growth rate of 4% General Public Consulting could see sales at over $400,000 in the next five years. 
General Public Consulting’s  financial results show the following   
·      Current ratio indicates a figure of 2.13
·      Net profit margin is .47
·      Return on assets is .70
The current ratio is a measure of liquidity and a company’s ability to quickly convert assets and securities to cash.  At this point General Public Consulting definitely has the ability to cover their liabilities.
The net profit margin is 47%.  A higher net profit margin indicates that General Public Consulting is better at converting sales into profit (Wilkinson, J., 2013).  In the fourth quarter of 2013 the average net margin for a professional services industry was only 11.43% and in the second quarter of 2014 dropped to 10.85% (Professional Services Industry (a), n.d.).
The average return on assets for the professional services industry in fourth quarter 2013 was 9.2% and rose to 15.59% in the second quarter of 2014 (Professional Services Industry (b), n.d).  General Public Consulting certainly has a much higher return on assets than the average in professional services.
Net profit margin and return on assets are measures of profitability for a company.  Return on assets is extremely high.  General Public Consulting is certainly using its assets to their benefit and generating revenue.  One of its greatest assets are the interns themselves and with the vast business and accounting knowledge of several interns put together for a common goal, this company will grow by leaps and bounds.

Reference:Copied to Clipboard!

Balance Sheet. (July 13, 2014). Waveapps.
Cojanu, Marley. (May 12, 2014).  Email. TOMORROW is the Last Day to Switch to the ONLINE Internship for Real Experience!
Income by Customer. (July 13, 2014).  Waveapps.
Income Statement. (July 13, 2014). Waveapps.
General Public Consulting (2013). Annual Report.   
General Public Consulting Marketing Brochure. (2014).  Retrieved from URL:
General Public Consulting Newsletter (a). (July 6, 2014).
General Public Consulting Newsletter (b). (June 15, 2014).
General Public Consulting Newsletter (c). (June 22, 2014).
General Public Consulting Newsletter (d). (June 28, 2014).
Professional Services Industry (a). (n.d.). Profitability by quarter, Gross, Operating and Net Margin 2Q2014 Retrieved July 19, 2014, from
Professional Services Industry, (b). (n.d.). Profitability by quarter, Gross, Operating and Net Margin 2Q2014 Retrieved July 19, 2014, from
Taylor, Sherlock. (2014).  Proforma Income Statements M&A. Financial Statement Analysis.
Wilkinson, J. (2013, July 24). Net Profit Margin Analysis. The Strategic CFO. iCal. Retrieved July 19, 2014, from

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