North Valley Arts Council's board of directors discussed finances Tuesday in efforts to continue reorganizing the nonprofit.
Board President Bryan Hoime presented an updated financial statement forecasting NoVAC's budget through this year, including projected profit and paying off debt.
"We are quite encouraged by the report," Hoime said.
NoVAC expects a $6,577 net income for the end of this year.
This is partly due to NoVAC's $50,000 profit from this year's Grand Cities Art Fest, up from last year's $48,000 profit, Hoime said.
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NoVAC's financial forecast also includes paying off an outstanding $10,000 line of credit and an outstanding $1,800 credit card bill by the end of this year.
Former NoVAC officials took out the $10,000 line of credit last November without the full board's knowledge, and Hoime said NoVAC maxed out its credit card last year, resulting in the $1,800 bill.
The disorganization that allowed those actions in the past is part of why NoVAC's board, which includes four new members, is sorting through its finances for better organization moving forward, board members have said. NoVAC has heard several questions from city officials and the public about its finances in recent months.
NoVAC's board approved Tuesday a $2,050 payment toward the line of credit and will continue payment in installments of that amount until the $10,000 debt is paid off by its November deadline.
Previously, NoVAC had just been paying interest on the line of credit.
NoVAC also intends to pay off the $1,800 credit card bill in $300 installments, Hoime said. NoVAC's Director of Operations Leighann McKenzie explained that credit card is mainly used for office supplies and emergencies during Art Fest, which is NoVAC's largest event.
"What we want to do is pay it off so we can use it more judiciously," Hoime said.
Though NoVAC expects to end this year with a profit, it still will not have enough money to hire an executive director, Hoime said.
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NoVAC has been operating without an executive director since former interim Director Gary Edwards, a volunteer, left the organization in March. Details behind his departure remain unclear.
Edwards had been hired in October to replace former Executive Director Marie Strinden, who resigned suddenly in August with little explanation.
After NoVAC finishes an in-progress job description for the executive director position and organizes some past financial information, it will likely either approach the Grand Forks City Council's Finance/Development Committee or seek grants for help funding an executive director, Hoime said.
Hoime also said Tuesday NoVAC's membership is down. People can pay annual dues to be members of NoVAC, which usually brings in about $10,000 annually. So far this year, membership dues total about $6,000 or $7,000.
The board discussed possibly organizing a membership drive and fundraiser drive for the near future.
