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ALA Finance Workshop Round Tables

Friday - January 11, 2008. ALA Finance Workshop Round Tables. Good Things to Know. Philadelphia Marriott, Salon K/L Philadelphia, PA. Norman Eriksen. What is the Role of a Round Table Treasurer or Finance Person.

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ALA Finance Workshop Round Tables

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

  2. What is the Role of a Round Table Treasurer or Finance Person • 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.

  3. What is the Approval Process for a Round Table Budget ? • 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.

  4. 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 three - year financial plan.

  5. Review and Development of Budgets • 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%.

  6. Review and Development of Budgets(continued) • Year-to-year revenue increase should equal or exceed year-to-year expense increase. • 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.

  7. Budget Planning Alerts • Net asset balance falls below 25% of the annual operating expenses, indicating revenues are barely sufficient to cover expenses. • Erosion of the net asset balance over time. • Expenditures that exceed annual revenues except when due to a multi- year funding strategy for projects such as division national conferences. •  Year-to-year expense increase is greater than year-to-year revenue increase. • No increase in dues revenue. • No net revenues from revenue generating projects such as publishing or conference.

  8. Unit Budget Discussion Points • How do units balance short term vs. long-term priorities of the Association? • What is the new norm for expected financial growth? • What is the mechanism your unit has used to add/delete activities? • How do units finance increasing demand for more programs when revenues are not growing? • What do units consider the priorities at the ALA level? How can units provide input in the process? • Are reserves levels adequate? • Are reserves levels adequate to make transfers to the Endowment? 

  9. Budget Reports • 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

  10. Endowment Funds • 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

  11. Development Office • 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

  12. Important Contacts • Treasurer’s web page - Access point for all financial information - Rod Hersberger http://www.ala.org/ala/ourassociation/governanceofficeb/alafinancialinfo/alafinancialinfo.htm • Development Office - Kim Olsen-Clark • Endowment - Robert Newlen (2008) • ALA Staff - Assigned ALA Staff liaison - Gregory Calloway - Keith Brown

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