Annual Report – 2011

I am pleased to report that the Retail Council of New York State (RCNYS) has ended its 2010-2011 Fiscal Year in solid financial condition despite substantial economic pressures again this year. The Retail Council and its for-profit subsidiary, Retail Council Services Corp. (RCSC) remain fiscally sound and continue to enjoy considerable revenue streams from dues, insurance programs, credit card processing and other member services programs.

The Retail Council in 2011 also experienced a productive regular legislative session. Despite daunting challenges coupled with the uncertainties of a new gubernatorial administration, the Council achieved significant legislative victories on behalf of its diverse membership and, in fact, all retailing. Both the number of laws which the Council lobbied and supported, as well as the numerous bills blocked or vetoed which we opposed underscore the effectiveness of the Council’s government relations advocacy. Special mention and recognition is given to the Council’s Government Relations team, under the steady direction of Ted Potrikus, Executive Vice President and Director of Government Relations, and Assistant Director Melissa Googas for their tireless and effective management of the government affairs programs.

The management team and support staff of the Retail Council once again performed admirably in serving the needs and interests of our members. Rob Leonard, Vice President of Finance and Operations and Rebecca Flach, Vice President of Membership and Communications, and their respective teams worked diligently and cooperatively to create, deliver, and administer the very best member services and programs available.

Finances

RCNYS and RCSC underwent a complete independent financial audit by the accounting firm of Stulmaker, Kohn & Richardson at the conclusion of the 2010-2011 fiscal year. The results of the audit reveal another profitable year for the organization and an increase in the association’s net assets. Our fund balance remains strong and secure.

Membership Dues

Recruiting and maintaining members remains a challenge in today’s unstable economic environment and the staff of the Retail Council continues to work hard to counteract this reality. We continue to offer a strong and impressive blend of money-saving programs and value-added services to appeal to any retailer, regardless of size or format.

Annual membership dues paid to the Retail Council to take advantage of one or more of our attractive services and programs is the main source of revenue for the association.

Insurance Services

Workers’ Compensation Safety Group 493, managed by the Retail Council and underwritten by the New York State Insurance Fund, remains a leading member service program offered to dues paying members. The discounted premium level of Safety Group 493 at the end of the 2010-2011 FY stood at $11,036,018. The Council’s Safety Group remains strong and healthy; and my thanks to fellow Executive Committee members Clint Hegeman, Sharon Fenno, Danny Kilbert and Bob Kayne for their guidance and cooperation throughout the year.

The Council continued its tradition of declaring sizeable dividends to qualified Safety Group participants with a 40% dividend issued in November 2010. Checks totaling more than $4.1 million were mailed to eligible Council members, continuing an outstanding 32 year history of consecutive dividend returns averaging nearly 39%.

Council management also oversees a Disability Insurance (DBL) program, underwritten by The Hartford and offers Business Owners (BOP) Insurance to members. This DBL program is a true association program offering the very lowest quarterly disability insurance rates for any business in New York State.

Merchant Services

The Council’s credit card processing program offered to members through our long-standing partner Global Payments, Inc. continues to be one of our strongest member benefit programs. Despite some decline over the past few years due to the economy and outside competitive sources, FY 2010-2011 ended with total credit card processing volume up .30% from the prior fiscal year.

In addition to its core retail merchant membership base, the Retail Council, through the auspices of RCSC, administers and provides payment processing and other merchant services to 22 industry and professional organizations from coast to coast. We will continue to pursue these extended affiliations by offering a proven turn-key solution to the credit card processing needs of other membership organizations.

Retail Council Services Corp.

Retail Council Services Corp. (RCSC), the for-profit wholly owned subsidiary of the Retail Council of New York State, continues its successful operation. The RCSC Board of Directors, which meets three times annually, is comprised of John D’Aleo, Michael Keegan, Ted Potrikus, James Quaremba, Ruth Walters, Leonard Tucker, Estelle Yarinsky and myself. My thanks to all Board members for their valued service and important contributions.

Acknowledgments

The sustained success of any organization is clearly dependent upon the collective and collaborative efforts of its entire staff, and the long-term success of the Retail Council is most certainly testament to that fact. My very talented management team of Ted Potrikus, Rebecca Flach, Rob Leonard and Melissa Googas and I repeatedly called on the services, energies and expertise of the Council staff and to each of them – Virginia Hitchcock, Michele Coons, Laura Barry, Michelle Bruck, Dennis Eck, Ken Rutsky, and Nicholl Bautochka – I express my thanks and appreciation for all of their hard work, throughout the year, to advance the mission of the Retail Council.

I also want to acknowledge with gratitude the work and contributions of the officers of the Retail Council during the past year. Chairman Michael Shaffer, Vice Chairs Sharon Fenno and Ted Potrikus, Secretary Tom Zapf and Treasurer Clint Hegeman all devoted much of their valuable time and talents to help oversee and administer the business of the Retail Council. New York retailers have been very well-served by their efforts and I extend my personal thanks and appreciation for their support and good counsel.

Respectfully submitted,

James R. Sherin
President and Chief Executive Officer