ALA CD #13.2 (2012 Annual Conference)

Transcription

1 ALA CD #13.2 (2012 Annual Conference) James Neal ALA Treasurer Monday June 25, 2012 Anaheim, CA

2 FY12 Budget Update What are the key strategic issues affecting ALA and its financial future? What are the trends in ALA s income and expense areas and the opportunities for new business development? What is the budget plan for FY13? 2

3 YTD YTD % Actual Budget Variance Change General Fund $ 15,608,166 $ 14,935,623 $ 672, % Divisions $ 11,267,030 $ 12,022,837 $ (755,807) -6.3% Round Tables $ 183,594 $ 246,104 $ (62,510) -25.4% Grants/Awards $ 3,542,257 $ 3,369,235 $ 173, % LTI $ 538,866 $ 558,444 $ (19,578) -3.5% Total $ 31,139,913 $ 31,132,243 $ 7, % 3

4 YTD YTD % Actual Budget Variance Change General Fund $ 17,972,861 $ 16,548,952 $ (1,423,909) -8.6% Divisions $ 9,757,279 $ 11,403,311 $ 1,646, % Round Tables $ 74,502 $ 159,301 $ 84, % Plant Fund $ - $ 170,800 $ 170, % Grants/Awards $ 3,542,257 $ 3,369,235 $ (173,022) -5.1% LTI $ 226,849 $ 333,480 $ 106, % Total $ 31,573,748 $ 31,985,079 $ 411, % 4

5 YTD Actual YTD Budget Variance % Change Total Revenues $ 31,139,913 $ 31,132,243 $ 7, % Total Expenses $ 31,573,748 $ 31,985,079 $ 411, % Net Revenue $ (433,835) $ (852,836) $ 419, % 5

6 ANNUAL BUDGET SUMMER PROJECTION VARIANCE % CHANGE GENERAL FUND $ 27,072,978 $ 27,645,537 $ 572, % DIVISIONS $ 16,348,510 $ 15,173,843 $ (1,174,667) (7.2%) ROUND TABLES $ 430,639 $ 430,639 $ - GRANTS AND AWARDS $ 5,319,332 $ 5,319,332 $ - LONG TERM INVESTMENT FUND $ 837,756 $ 837,756 $ - TOTAL REVENUES $ 50,009,215 $ 49,407,107 $ (602,108) (1.2%) GENERAL FUND $ 27,072,978 $ 28,506,498 $ (1,433,520) (5.3%) DIVISIONS $ 16,435,834 $ 14,989,023 $ 1,446, % ROUND TABLES $ 351,373 $ 351,373 $ - GRANTS AND AWARDS $ 5,319,332 $ 5,319,332 $ - LONG TERM INVESTMENT FUND $ 674,740 $ 674,740 $ - TOTAL EXPENSES $ 49,854,257 $ 49,840,966 $ 13, % NET REVENUE(LOSS) $ 154,958 $ (433,859) $ (588,817) (380.0%) 6

7 Annual Summer % Budget Projection Variance Change Total Revenues $ 27,072,978 $ 27,645,537 $ 572, % Total Expenses $ 27,072,978 $ 28,506,498 $ (1,433,520) (5.3%) Net Revenue $ 0 $ (860,961) $ 860,961 NA 7

8 Revenue Variance to Budget Publishing (1) $1,862,000 Annual Conference (2) ($ 857,000) Interest Income ($ 390,000) Miscellaneous (Mail list etc.) ($ 42,000) Total $ 572,000 1) Neal-Schuman $1,982,000 RDA ($ 90,000) 2) Registration ($ 473,000) Exhibits ($ 357,000)

9 Expenses Publishing (3/4) ($2,335,000) Annual Conference $ 438,000 Benefits $ 177,000 Unallocated/Contingency $ 200,000 Communications $ 117,000 Overhead $ 78,000 Executive Office $ 70,000 Other ($ 301,000) Total ($1,433,000) 3) Neal-Schuman Operating Expenses $1,429,000 - Includes one-time acquisition cost $ 717,000 4) Reduction to Neal-Schuman book value $ 335,000

10 4) Reduction to Neal Schuman book value - $335,000 Note: Certain intangible assets such as trademark, backlist, on-line catalog, etc. have a value that extends between 3 and 10 years. A portion of the value or useful life will be recognized as an expense each year. The expense for FY 2012 will be $335,000 and is based on valuations provided by the accounting firm of Blackman Kallick. 10

11 Projected Deficit - $400,000 The Executive Board approved the transfer of the remaining unused interest of $94,551 from the ALA Future Fund interest generated from 2005 and 2006 to partially offset the projected FY 2012 General Fund operating deficit. Additionally, the Executive Board approved the use of up to $300,000 in General Fund net asset balance reserves to further offset the projected FY 2012 General Fund operating deficit.

12 Net Asset Balance - Beginning FY12 $ 1,428,293 Use of Reserves to Cover FY12 Loss ($ 860,960) Use of Future Fund Interest $ 94, Projects Expensed in FY12 ($ 200,000) Total FY12 Use of Reserves ($ 966,960) Net Asset Balance - Ending FY12 $ 461,333 Projected FY13 additions to net assets $ 200,000 Projected Net Asset Balance - Ending FY13 $ 661,333 12

13 Continuing Economic Challenges Political Environments Not Supportive Virtual Professional Participation Globalization of Information Issues Massive Changes In Publishing Industry Limited Growth In MLS Workforce 13

14 Primary Revenue Sources Flat or Declining Need To Diversify and Enhance Revenue Sources Need To Invest In Technology and Systems Need For Continued Focus On Efficiencies and Productivity Member Value and Engagement Highest Priority Keep Resources Focused On Strategic Priorities 14

15 $60,000,000 $55,000,000 $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000, Total ALA Revenues Total ALA Expenses 15

16 $30,000,000 $29,000,000 $28,000,000 $27,000,000 $26,000,000 $25,000,000 $24,000,000 $23,000, General Fund Revenues General Fund Expenses 16

17 6,000,000 5,800,000 5,600,000 5,400,000 5,200,000 5,000,000 4,800,000 4,600,000 4,400,

18 7,000,000 6,500,000 6,000,000 5,500,000 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000, Midwinter Annual 18

19 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 0 (200,000) Midwinter Annual 19

20 $13,000,000 Total Revenue $12,500,000 $12,000,000 $11,500,000 $11,000,000 $10,500,000 $10,000,000 $9,500,

21 $2,500,000 Net Revenue $2,000,000 $1,500,000 $1,000,000 $500,000 $

22 Primary Sources of Revenue: Membership Conferences Publishing How to Build New Revenue Streams for ALA: Current Products to Current Markets New Products to Current Markets Current Products to New Markets New Products to New Markets 22

23 Areas of Current Activity and Exploration: Electronic Publishing Continuing Education Online International Community Public/Library Users Mergers and Acquisitions 23

24 Financial/Accounting System Web Content Management System E-Commerce System Hardware Upgrades Software Upgrades Capital Budget Technology Reserve Fund 24

25 Details and Approval

26 To develop and deploy the financial resources that support the strategic plan and delivery of programs that are responsive to member needs and support the improvement of library service.

27 Diversity Equitable Access to Information and Library Services Education and Lifelong Learning Literacy Organizational Excellence Intellectual Freedom Transforming Libraries Advocacy for Libraries and the Profession 27

28 Net Assets (Unexpended balance remaining from FY 2012) + Revenue (Anticipated for FY 2013) = Budgetary Ceiling See Article IX, page 30 of ALA Handbook 28

29 Budgeted FY 2013 Revenues Dues Material Sales Subscriptions Advertising Meet/Conferences Miscellaneous Total Budgetary Ceiling (2013) Total Budgetary Ceiling (2012) $5,807,988 9,075,698 2,952,390 3,908,039 7,480,274 2,415,787 $31,640,176 $27,072,978 29

30 Estimated Beginning - Net Asset Balance (Ending FY12 Projection) Budgeted FY 2013 Revenue Other Revenue Transfers* Total Budgetary Ceiling (2013) Total Budgetary Ceiling (2012) $12,642,063 $13,509,921 $ 19,524 $26,171,508 $27,501,907 *Life and Continuing Member Dues 30

31 Estimated Beginning - Net Asset Balance (Ending FY12 Projection) Budgeted FY 2013 Revenue Total Budgetary Ceiling (2013) Total Budgetary Ceiling (2012) $1,172,095 $ 394,664 $1,566,759 $1,419,469 31

32 Non-Government Governments Contributions Total Budgetary Ceiling (2013) Total Budgetary Ceiling (2012) $2,082,974 $2,006,509 $ 622,189 $4,711,672 $5,319,332 32

33 Budgeted FY 2013 Revenue Interest/Dividend Transfer Spectrum Interest/Dividends Spectrum Capital Gain Life Member Dues Total Budgetary Ceiling (2013) Total Budgetary Ceiling (2012) $1,075, , ,473 99,046-61,524 $936,716 $914,017 33

34 General Fund Divisions Round Tables Grants & Awards Long Term Investments Total ALA Budgetary Ceiling (2013) Total ALA Budgetary Ceiling (2012) $31,640,176 26,171,508 1,566,759 4,711, ,716 $65,026,831 $62,227,703 *Technology Reserve Fund $318,070

35 Approval of FY 2013 Budgetary Ceiling of $65,026,831

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