Treasurer’s Report for FY 2007

1. Treasurer’s Report for FY 2007 CD #13.0 January 15, 2008 Philadelphia, PA Rodney Hersberger Treasurer

2. American Library AssociationBARC Member Orientation(Financial Fundamentals) Marilyn Hinshaw – BARC Chair Rod Hersberger – Treasurer Gregory Calloway – AED Finance Fall BARC Meeting Wednesday - October 3, 2007

3. American Library Association’sFinancial Primer- ALA’s Financial Fundamentals -“Unlocking the door to understanding finance” See Treasurer’s Web page http://www.ala.org/ala/ourassociation/governanceofficeb/alafinancialinfo/alafinancialinfo.htm

4. Glossary of Working Terms 501 C3 (ALA) – a tax law provision granting exemption from the federal income tax to non-profit organizations. exemptions apply to corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals. 501 C6 (APA) – a tax law provision granting exemption from the federal income tax to non-profit organization that promotes a line of trade or business. This exemption is reserved for business leagues, chambers of commerce, real estate boards or boards of trade etc. The APA is exclusively devoted to a number of functions which cannot be undertaken to a "substantial" extent by the American Library Association, which is organized as a nonprofit educational association under section 501(c)3 of the U.S. Internal Revenue Code. These functions are (1) the certification of individuals in specializations beyond the initial professional degree and (2) the direct support of comparable worth and pay equity initiatives and other activities (e.g. legislative lobbying) designed to improve salaries of librarians and other library workers. As a 501(c)6 professional association, the ALA-APA is able to serve as a vigorous advocate for America's librarians and other library workers and will be able to offer certifications which will help promote individual status and the quality of library service. Accrual Accounting - An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received).

5. Glossary of Working Terms Assets – An item of economic value owned by an individual or organization, that can be converted to cash. Budgetary Ceiling – Except for projects supported by grants to the Association, annual estimates of income shall be based uponthe unexpended balance remaining from the previous year plus anticipated revenues for the next budget year. In no case may expenditures be budgeted in excess of the estimates of income arrived at in this manner except for projects supported by grants to the Association. The annual estimates of income and budget objectives for each year are to be submitted to Council for approval. Capital Appreciation – an increase in the market value of an asset (marketable securities) over its original cost. Capital Budget - A detailed plan to secure or finance long-termoutlays, for fixed assets such as facilities, furniture, equipment, software and hardware. Credit* – Entry on the right side of a DOUBLE-ENTRY BOOKKEEPING system that represents the reduction of an ASSET or expense or the addition to a LIABILITY or REVENUE. (See DEBIT.) Debit*- Entry on the left side of a DOUBLE-ENTRY BOOKKEEPING system that represents the addition of an ASSET or expense or the reduction to a LIABILITY or REVENUE. (See CREDIT.) *See BARC orientation presentation

6. ALA Mission Statement * To provide leadership for the development, promotion and improvement of library and information services and the profession of librarianship in order to enhance learning and ensure access to information for all. *From ALA: AHEAD TO 2010

7. Programmatic Priorities - FY07 • Diversity • Equitable Access to Information & Library Services • Education and Lifelong Learning • Intellectual Freedom • Advocacy for Libraries and the Profession • Literacy • Organizational Excellence

8. Total ALA Operating Revenues & Expenses(2003 – 2007)

9. General Fund Revenue & Expenses(2003 – 2007)

10. General Fund Net Revenue(2003 – 2007)

11. Division Net Revenue(2003 – 2007)

12. General Fund: Support for Programs & Services Funding Sources - $10,739,819 *Includes royalties, donations etc.

13. General Fund: Overhead Recovery - $2,818,303

14. General Fund: Use of Funding Sources - $13,085,897

15. General Fund:Funding and Use Summary GF Funding Sources $10,739,819 Less: GF Uses of Funding Sources 13,085,897 Sub Total (2,346,078) Add: Overhead Recovery 2,818,303 Ending Balance*$ 472,225 *Funds available to cover other General Fund expenses not listed under uses.

16. Meetings & Conferences (Net Revenue)

17. Meeting & Conferences Net Margins

18. Meeting & Conferences Net Margins(Annual Conference & Midwinter Meeting)

19. Total and Personal Membership History(2003 – 2007)

20. Dues Revenue by Member Type(2002 and 2007)

21. Member Ownership

22. Dues Revenue Trend* *Represents the last two dues increases – 1995 and 2006

23. Dues Revenue by Transaction Type(2002 and 2007)

24. AHEAD TO 2010 The Strategic Planning Process

25. 2010 Financial PlanFY 2007 Projects • $233,226 in FY 2006/07 projects • Advocacy Resource Training - $42,464 • ALA Web Design - $42,647 • E-Government - $28,044 • Delivery of Library Message - $20,949 • Member Satisfaction Survey – $19,600 • CCF Marketing - $5,087 • Ad Campaign - $13,000 • Media Group/Media Participation - $20,000

26. 2010 Project Highlights • School Library Advocacy Statistics Initiative - Office for Library Advocacy working with the Office for Research & Statistics, Washington Office, AASL, YALSA and ALCS - Will create a web based tool for members and advocates to make the case for libraries. • ALA/ALTA Advocates Newsletter - One of the key components of the “I Love Libraries” advocacy web site.

27. 2010 Project Highlights (Con’t) • Advocacy for Rural Libraries and for Tribal Libraries - Developed “The small but powerful guide to winning big support for your rural library.” • State/Chapter Online Network - Provides 25 Chapters with Capwiz. - An online program that allows ALA and the Chapters work together and mobilize grassroots support.

28. Future Treasurer Discussion Topics • Publishing Net Revenue • Overhead Recovery • Offices ie Washington, OIF, HRDR etc. • Other topics of member interest

29. Questions

30. Thank You

31. CD #13.2 Programmatic Priorities - FY09 • Diversity • Equitable Access to Information & Library Services • Education and Lifelong Learning • Intellectual Freedom • Advocacy for Libraries and the Profession • Literacy • Organizational Excellence

32. The ALA Executive Board recommends to the ALA Council approval of the following programmatic Priorities as a guide in the preparation of the FY 2009 budget, which are in line with the ALA Ahead to 2010 strategic plan: Diversity Equitable Access to Information & Library Services Education and Lifelong Learning Intellectual Freedom Advocacy for Libraries and the Profession Literacy Organizational Excellence Programmatic Priorities - FY09Draft Motion