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Worcester Chapter Presentation

This presentation discusses the financial goals and observations of the Worcester Chapter in 2017, focusing on AMC economics and the importance of reserves. It covers funding sources, the rationale for reserves, and considerations for appropriate contingency funds. The presentation also provides insight into the Worcester Chapter's financial history and funding deployment.

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Worcester Chapter Presentation

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  1. Worcester Chapter Presentation • 2017 Goals • AMC Economics • AMC “Reserves” • Chapter Financial Observations • Considerations • WorcesterChapter Economics • Worcester Chapter Financial History

  2. 2017 Goals • Hold Treasurer webinar covering the Finance & Administration Manual • Fixed Asset & Capital Planning • Meeting with each chapter’s leadership to help answer chapters’ finance-related questions NOTE: We’re going through the same process with the VCCs!

  3. AMC Economics – AMC’s Funding Sources $10.9M – Lodging Revenue NH/NJ/NY Facilities – $4.4M Huts – $4.1M Maine Facilities – $0.8M Volunteer Led Camps & Cabins – $1.7M $13.4M – Philanthropy Annual Fund – $3.4M Membership – $3.1M Endowment – $2.5M Grants – $1.9M Capital Campaign (LGI) – $1.9M Support Funds – $0.5M $2.0M – Merchandise & Publications $2.5M – Program Fees, Contracts & Other Revenue

  4. AMC “Reserves” • Rationale for AMC “Reserves” • For “risks” within rigorous budget discipline • To protect against the variability and unpredictability in revenue and expenses • Where is the budget “variability”? • Outdoor Program Centers • Weather, economy, consumer trends • Philanthropy • Year-end donations, grant success, competition, government funding, investment returns • Operating Surplus Fund (OSF) • Composed of annual surplus and bequests • Board determined $1.5m (approx. 5% of revenues) • “Strategically” spend excess (V2010, V2020) • $2m spent 2010-2016

  5. Chapter Financial Observations • Significantly improved financial conditions • Buildup of “Cash & Reserves” • Operations are generating surpluses • Conservative spending? Fewer newsletters? Other? • Investment returns on endowment and invested reserves • Total Chapter Cash & Reserves = $1.85m • OSF = $2.3 current ($1.5m floor) • What is the appropriate level for chapter contingency funds given… • Reserves at the AMC level • Mission needs • Fiduciary responsibility We are engaged in a process to determine the appropriate level of “Reserves”

  6. Considerations • Stewardship • Long-term sustainability • Fiduciary responsibility • Appropriate Spending • Publicly Charitable • Mission-oriented • Contingency • Covering net fixed costs (vs. variable costs) • Protecting against unexpectedly lower revenue and expenses • Existing AMC reserves • AMC Operating Surplus Fund, as an example

  7. Worcester Chapter Finances FUNDING SOURCES • “Stable & Recurring” Revenues • Endowment Allocation • Membership Allocation • “Variable & Recurring” Revenues • Program Income • Other Income • Other Funds • Excess Cash • Invested Reserves FUND DEPLOYMENT • “Stable & Recurring” Costs • Publishing & Promotion • “Variable & Recurring” Costs • Program Costs • Other Costs • Other Costs • Strategic Projects

  8. Worcester Chapter Financial History

  9. Worcester Chapter Financial History Note: The decline in cash assets in 2012 is due to a $23k capital purchase

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