Transcript Friday - January 11, 2008 ALA Finance Workshop Round Tables Good Things to Know Norman Eriksen Philadelphia Marriott, Salon K/L Philadelphia, PA.

Friday - January 11, 2008
ALA Finance Workshop
Round Tables
Good Things to Know
Norman Eriksen
Philadelphia Marriott, Salon K/L
Philadelphia, PA
What is the Role of a Round Table
Treasurer or Finance Person
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To work with the steering committee and
committee chairs of the RT to create a
budget that ensures the enough funds to
cover RT all expenses and to have a net
asset balance at all times.
Each committee chair should have a list of
all budget code that can be used by their
committee and a basic budget procedure
specific for that committee with a budget
ceiling.
Operating expenses should be covered
primarily by dues income- can supplement
with various fund raising activities.
What is the Approval Process for a
Round Table Budget ?
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Steering committee and Treasurer, in
conjunction with staff, create then send
to the ALA staff liaison for review.
The ALA staff liaison then discusses
with the BARC liaison as part of the
budget approval process.
The results are then approved by
BARC, forwarded to F&A/Executive
Board where it is where it is integrated
in the total ALA budget.It is then
presented to Council for final approval.
ANNUAL BUDGETARY
PLANNING CALENDAR
September October
ALA management reviews the strategic focus of the Association.
October - Fall
Board Mtg.
The Executive Board reviews the strategic plan as presented by
the Executive Director/Senior Management and further defines
the strategic focus resulting in the broad programmatic
objectives. The Executive Board and BARC review and approve
the Division’s final Budgetary Ceiling for the current year.
Midwinter
Meeting
The Executive Board - Treasurer - presents the broad programmatic
objectives to Council for approval. BARC monitors the current
budget. President-Elect proposes presidential program budget.
January
ALA staff prepares the Annual budget based on the broad
programmatic objectives.
March - April
Budget hearings for ALA and the Divisions are held.
April May
The Executive Board receives from staff - Senior Management the preliminary budget, which is reviewed and then forwarded to
BARC for a detailed analysis.
May - June
Staff – unit managers and senior management - updates the budget.
Annual
Conference
Executive Board approves the budget. Council approves the
budgetary ceiling. Division Boards approve their budgets.
August September
Staff begins preparing next year’s budget and
financial plan.
three - year
Review and Development of
Budgets
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Division and Round Table Boards are responsible for
program prioritization, funding and analysis. The
Budgetary Ceiling calculation is unique for Divisions and
Round Tables – both can carryover and spend fund
balances balances, which gives maximum flexibility.
The ALA Management Group (Executive Director,
Associate Executive Directors, Development Office
Director, Human Resources Director, ITTS Director and
a Division representative) review and recommend all
Division and Round Table budgets to BARC, along with all
other ALA budgets.
Transfers and creation of the Endowment
Budget to actual variances of revenue and expenses
should not vary more than +- 10%.
Review and Development of
Budgets
(continued)
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Year-to-year revenue increase should equal or
exceed year-to-year expense increase.
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BARC reviews financial trends and ensures
compliance of budgets with ALA policy. Key
indicators of financial trends include:
- membership statistics
- major sources of revenue
- changes in net assets
- performance results of prior budgets,
new ventures, which may result in additional risk
- additions to staff, programs, or capital
equipment, which need to be reviewed over a long
run basis
- significant changes between years
- reserves levels.
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Budget Planning Alerts
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Net asset balance falls below 25% of the annual
operating expenses, indicating revenues are barely
sufficient to cover expenses.
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Erosion of the net asset balance over time.
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Expenditures that exceed annual revenues except
when due to a multi- year funding strategy for
projects such as division national conferences.
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Year-to-year expense increase is greater than
year-to-year revenue increase.
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No increase in dues revenue.
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No net revenues from revenue generating projects
such as publishing or conference.
Unit Budget Discussion Points
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How do units balance short term vs. long-term
priorities of the Association?
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What is the new norm for expected financial
growth?
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What is the mechanism your unit has used to
add/delete activities?
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How do units finance increasing demand for more
programs when revenues are not growing?
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What do units consider the priorities at the ALA
level? How can units provide input in the process?
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Are reserves levels adequate?
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Are reserves levels adequate to make transfers to
the Endowment?
Budget Reports
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Issued monthly and forwarded to
RT by the staff liaison
Covers all activity in the
account(s)
Important to carry over net asset
balance from current fiscal year to
next fiscal year
Line items- funds allocated to
cover expenses for the current
fiscal year
- Best to have a fund line in
case of an unanticipated need
- If no activity on the line will
not impact on the budget
Endowment Funds
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Overseen by Endowment
Trustees and policy 8.5.1
To be used to fund book
awards/scholarships and any
other identifiable expenses
Not to be used for operating
expenses, except any net
interest
$10,000 minimum to open
account
Development Office
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Will assist RT’s in fund raising
programs
Donations can be raised for
endowment and operating expenses
Supply donation direct mailer
envelopes
RT fund raising activates are not
listed in the ALA donation website
RT should have their own fund
raising/development committee
Sample donation letter is helpful
Important Contacts
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Treasurer’s web page -
Access point
for all financial information
- Rod Hersberger
http://www.ala.org/ala/ourassociation/governanceofficeb/alafinancialinfo/
alafinancialinfo.htm
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Development Office
- Kim Olsen-Clark
Endowment
- Robert Newlen (2008)
ALA Staff
- Assigned ALA Staff liaison
- Gregory Calloway
- Keith Brown